Agenda of Demerger Transition Committee Meeting

Demerger Transition Committee Meeting Agenda

14 July 2026

NOTICE OF MEETING

A Meeting of The Demerger Transition Committee will be held in the Council Chambers, Gundagai on:

Tuesday, 14th July, 2026 at 6pm

The agenda for the meeting is enclosed.

Roger Bailey

Interim General Manager

Live Streaming of Meetings Statement

This meeting is streamed live via the internet and an audio-visual recording of the meeting will be publicly available on Council's website.

By attending this meeting, you consent to your image and, or, voice being live streamed and publicly available. Please refrain from making any defamatory statements.

Statement of Ethical Obligations

The Mayor and Councillors are bound by the Oath/Affirmation of Office made at the start of the Council term to undertake their civic duties in the best interests of the people of Cootamundra-Gundagai Regional Council and to faithfully and impartially carry out the functions, powers, authorities and discretions vested in them under the Local Government Act or any other Act, to the best of their skill and judgement.

It is also a requirement that the Mayor and Councillors disclose conflicts of interest in relation to items listed for consideration on the Agenda or which are considered at this meeting in accordance with Council’s Code of Conduct and Code of Meeting Practice.

Demerger Transition Committee Meeting Agenda

14 July 2026

4 Confirmation of Minutes

4.1 Minutes of the Demerger Transition Committee Meeting held on Tuesday 16 June 2026

REPORTING OFFICER	Anne Chamberlain, Governance Officer
AUTHORISING OFFICER	Roger Bailey, Interim General Manager
FINANCIAL IMPLICATIONS	There are no Financial implications associated with this report.
LEGISLATIVE IMPLICATIONS	There are no Legislative implications associated with this report.
POLICY IMPLICATIONS	There are no Policy implications associated with this report.
ATTACHMENTS	1. Minutes of the Demerger Transition Committee Meeting held on Tuesday 16 June 2026

Recommendation

That the Minutes of the Demerger Transition Committee Meeting held on Tuesday 16 June 2026 be confirmed as a true and correct record of the meeting.

MINUTES OF Cootamundra-Gundagai Regional Council
Demerger Transition Committee Meeting
HELD AT THE Alby Schultz meeting Centre, Cootamundra
ON Tuesday, 16 June 2026 AT 6pm

PRESENT: Cr Abb McAlister (Mayor), Cr Rosalind Wight (Deputy Mayor), Cr David Graham, Cr Ethan Ryan, Cr Gil Kelly

IN ATTENDANCE: Peter Bascomb (Demerger Transition Manager), Roger Bailey (Interim General Manager) and Cr Cooper

1 Acknowledgement of Country

The Chairperson acknowledged the Wiradjuri people who are the Traditional Custodians of the Land at which the meeting was held and paid his respects to Elders, both past and present, of the Wiradjuri Nation and extended that respect to other Aboriginal people who were present.

2 Apologies, Leave of Absence, and AUDIO-VISUAL attendance requests

2.1 Apologies

Committee Resolution

Moved: Cr Gil Kelly

Seconded: Cr David Graham

Apologies from Cr Penny Nicholson be received and leave of absence granted.

Carried

2.2 Leave of Absence

Nil

2.3 Audio-visual attendance requests

Nil

3 Disclosures of Interest

Nil

4 Confirmation of Minutes

4.1 Minutes of the Demerger Transition Committee Meeting held on Wednesday 15 April 2026

Committee Resolution

Moved: Cr Gil Kelly

Seconded: Cr Rosalind Wight

That the Minutes of the Demerger Transition Committee Meeting held on Wednesday 15 April 2026 be confirmed as a true and correct record of the meeting.

Carried

5 General Manager’s Report

5.1 General Manager Office

5.1.1 Legal Status of Successor Councils

Committee Resolution

Moved: Cr Gil Kelly

Seconded: Cr Ethan Ryan

The Committee recommends that Council request that the Proclamation:

1. Rename Cootamundra-Gundagai Regional Council as Cootamundra Shire Council and adjust the boundary to match the boundary of the former Cootamundra Shire Council

2. Create Gundagai Shire Council using the boundary of the former Gundagai Shire Council.

3. Include wording to require Cootamundra Shire Council to assign to Gundagai Shire Council, and Gundagai Shire Council to accept, all contracts and agreements entered into by Cootamundra-Gundagai Regional Council that were deemed necessary for the successful operation of Gundagai Shire Council.

Carried

5.1.2 Consideration of Recent Letter from the Office of Local Government

Committee Resolution

Moved: Cr David Graham

Seconded: Cr Ethan Ryan

That the Committee note the letter from the Office of Local Government dated 25 May 2026.

Carried

6 Confidential Items

6.1 Closed Committee Report

Committee Resolution

Moved: Cr Rosalind Wight

Seconded: Cr David Graham

1. Items 6.2 be considered in closed committee at which the press and public are excluded in accordance with the applicable provisions of the Local Government Act, 1993 and related public interest reasons detailed.

2. In accordance with section 11 (2) and (3) of the Local Government Act, 1993, the reports, correspondence and other documentation relating to Items 6.2 be withheld from the press and public.

Carried

The Committee entered Closed Committee at 6:14pm.

6.2 Determination of the Financial Sustainability Plan contract 2026/10

Committee Resolution

Moved: Cr Rosalind Wight

Seconded: Cr Gil Kelly

That the Committee

1. Approve the appointment of Always Thinking Advisory as the contractor to complete the work described in Contract 2026/10, Financial Sustainability Plan and Associated Work.

2. Note that the Financial Sustainability Plan work will need to take precedence over much of Council’s day-to-day work to ensure that it’s completed to schedule to enable Council to meet the Office of Local Government requirements.

Carried

Resumption of Open Council Meeting

Committee Resolution

Moved: Cr Gil Kelly

Seconded: Cr David Graham

That the Open Committee meeting resume at 6:22pm

Carried

Announcement of Closed Committee Resolutions

Note: The Interim General Manager announced the resolutions made in Closed Committee.

The Meeting closed at 6:23pm.


CHAIRPERSON	GENERAL MANAGER

Demerger Transition Committee Meeting Agenda

14 July 2026

5.1 General Manager Office

5.1.1 Consideration of Shared Services

DOCUMENT NUMBER

475506

REPORTING OFFICER

Peter Bascomb, Demerger Transition Manager

AUTHORISING OFFICER

Roger Bailey, Interim General Manager

RELEVANCE TO COMMUNITY STRATEGIC PLAN

4. Collaborative and progressive leadership

4.4 Recognised as a premier local government Council that represents and advocates for community needs

FINANCIAL IMPLICATIONS

There are no additional financial implications associated with this report.

LEGISLATIVE IMPLICATIONS

There are no Legislative implications associated with this report.

POLICY IMPLICATIONS

There are no Policy implications associated with this report.

ATTACHMENTS

Nil

Recommendation

That the committee recommend to Council that, for the purposes of the Financial Sustainability Plan currently being reviewed, the draft organisational structures for the two successor Councils not include any shared services.

Introduction

This report provides the opportunity for the Committee to review the previous assumptions about shared service.

Discussion

The 2024 Financial Sustainability Plan (FSP) assumed that the following would be shared services subject to service level agreements (SLAs) developed during the demerger period:

· land use planning

· development assessment-building certification

· environmental health

· youth inclusion office

· street cleansing

· customer call centre and out of hours

· (CES) engagement for community strategic plans

· grants coordination

· WHS, timesheet and payroll process

· recruitment process

· cadet-trainee (rotation) program

· ARIC, conduct review, compliance reporting and legal panels

· internal audit and risk management drafting

· project management office and contract administration

· integrated computer platforms and applications (IaaS and SaaS)

· shared Facilities

· emergency services centre

· commercial waste

· waste - landfill and transfer station

· fleet management and workshop

Discussions with staff and the management team has led to the conclusion that the only real benefit from such shared services is a potential depth of expertise. For example, a particular service may require one full-time employee (FTE) per successor council, for example building inspection.

A shared service would still mean two employees but employed by one of the councils. The belief is that if one employee is, say, on leave the other employee would continue to provide the service. This assumes that the employee has the capacity to take on the additional workload. If that is the case, there was no need for two employees in the first instance. If the employee does not have the capacity to take on the additional work, then the shared-service provider would need to “buy-in” additional capacity. This is what the Council requiring the additional capacity would do if it was not working through a shared service. Hence, the shared service does not provide a real benefit in this example.

Another area where a shared service is said to provide benefit is where one or both councils do not require a full-time employee to provide a particular service. However, a shared service complicates the management of staff and there are relatively few examples where such arrangements have worked well over the long term. Most small councils have found it more effective to combine roles requiring less than one FTE. Some examples of which the DTM is familiar include customer service staff undertaking the records management role, and accounts payable officer also being the payroll officer.

Permanent part-time roles also allow Council to provide a service requiring less than 1 FTE and there are often community members who are seeking such roles for lifestyle reasons.

Shared service arrangements also tend to lessen an employee’s commitment to the “client” council and its community. This is particularly relevant where the participating councils are separated by distance, culture and community of interest. This is one reason why shared services tend to be more successful in metropolitan areas.

Given the above, it is the recommendation that the FSP and draft organisation structures be prepared on the basis that there will be no shared services.

Of course, there will be nothing preventing the successor councils entering into cooperative agreements on projects or services or even developing a shared service arrangement. The recommendation leaves open all these options, plus the option for such arrangements to be with councils other than the other successor council which may assist in addressing the distance and community-of-interest issues. Nor does the recommendation prevent the provision of services, such as lime-spreading, by one council to the other. In summary, the recommendation provides the successor councils with maximum flexibility in staffing and managing their service provision.

It is also noted that the provision of the councils’ major software systems cannot be shared in the manner assumed in 2024, and that each successor council will have their own separate cloud version of the primary enterprise systems.

Financial

Nil

OLG 23a Guideline consideration

N/a

Demerger Transition Committee Meeting Agenda

14 July 2026

5.1.2 Community Stratgic Plans for the Successor Councils

DOCUMENT NUMBER

475507

REPORTING OFFICER

Peter Bascomb, Demerger Transition Manager

AUTHORISING OFFICER

Roger Bailey, Interim General Manager

RELEVANCE TO COMMUNITY STRATEGIC PLAN

4. Collaborative and progressive leadership

4.4 Recognised as a premier local government Council that represents and advocates for community needs

FINANCIAL IMPLICATIONS

There are no additional financial implications associated with this report.

LEGISLATIVE IMPLICATIONS

There are no Legislative implications associated with this report.

POLICY IMPLICATIONS

There are no Policy implications associated with this report.

ATTACHMENTS

Nil

Recommendation

That the Committee note the process and expenditure for the development of a draft Community Strategic Plan for each of the successor Councils.

Introduction

Each successor Council will require a complete suite of Integrated Planning and Reporting (IP&R) documents, including a Community Strategic Plan (CSP) available from commencement. This report outlines the process to develop the two CSPs.

Discussion

Given the community consultation that occurred as part of the recent update to Council’s CSP it is thought that the development of two individual CSPs can be streamlined. Discussions with management and staff suggest that there are not sufficient internal resources available to undertake the necessary work.

The proposed process is:

· Selection of suitable consultant

· Consultant reviews current CSP and at least the following documentation:

o The 2024 State of the Region report prepared by Cootamundra Gundagai Regional Council (CGRC)

o State and regional plans that apply to the proposed Cootamundra and Gundagai Local Government Areas

o Contemporary data related to key community indicators for the proposed Cootamundra and Gundagai areas

o Outcomes of the community engagement activities undertaken to inform the development of the current Community Strategic Plan

o Any other contemporary information about new and emerging issues identified by the Cootamundra and Gundagai communities, including issues that are unique to each community, as considered by the Boundaries Commission during the demerger process.

· Consultant develops draft CSPs for review and endorsement by the Demerger Transition Committee

· The Draft CSPs are placed on public exhibition for comment

· Consultant finalises the CSPs for submission to the Committee’s November meeting

· Council endorses the CSPs, along with other demerger project documentation, for submission to the Office of Local Government.

To streamline the overall process, Council sought quotes from two consultants who have previously worked with CGRC. The quotes will be reviewed by the IGM and DTM. The level of expenditure falls within the delegation of the Interim General Manager and therefore does not require a Council resolution.

It is anticipated that the preferred consultant, once selected, will commence before the end of July.

The Committee is reminded that, as part of the Financial Sustainability Plan (FSP) contract, two other important IP&R documents are being developed, namely the long-term financial plan (LTFP), and the revenue policy, for each of the successor councils. The remaining IP&R documents will be developed in the first half of 2027. Members might recall that part of the job description for the GMs-Designate is to finalise the FY28 delivery program (DP) and operation plan (OP) for their relevant Council.

While the IP&R documents will be finalised prior to the commencement of the successor Councils, the successor Councils will need to endorse them are their first meeting, currently planned for 1 July 2027.

Financial

The expenditure is less than $30,000 and will be drawn from Council’s allocated demerger transition budget. This level of expenditure falls within the delegation of the Interim General Manager and therefore does not require a Council resolution.

OLG 23a Guideline consideration

N/a

Demerger Transition Committee Meeting Agenda

14 July 2026

5.1.3 Demerger Transition Update - LGNSW Planning Meeting

DOCUMENT NUMBER

476170

REPORTING OFFICER

Peter Bascomb, Demerger Transition Manager

AUTHORISING OFFICER

Roger Bailey, Interim General Manager

RELEVANCE TO COMMUNITY STRATEGIC PLAN

4. Collaborative and progressive leadership

4.4 Recognised as a premier local government Council that represents and advocates for community needs

FINANCIAL IMPLICATIONS

There are no additional financial implications associated with this report.

LEGISLATIVE IMPLICATIONS

There are no Legislative implications associated with this report.

POLICY IMPLICATIONS

There are no Policy implications associated with this report.

ATTACHMENTS

1. Letter to OLG regarding Preferred Proclamation ⇩

Recommendation

That the committee notes the report in relation to the Demerger Transition Update – LGNSW Planning Meeting.

Introduction

This report summarises the key outcomes of a demerger planning meeting convened by LGNSW on 30 June 2026 and outlines the implications for Council's ongoing demerger transition planning.

Discussion

On Tuesday 30 June Council’s Interim General Manager (IGM) and Demerger Transition Manager (DTM) attended a demerger planning meeting in Sydney at the offices of LGNSW. Also present at the meeting were representatives of the Office of Local Government (OLG), staff from Snowy Valleys Council (SVC) and LGNSW legal and industrial relations (IR) teams.

The meeting was convened by LGNSW to share knowledge and experiences arising from the respective demerger processes and to identify areas where LGNSW's legal and industrial relations services could assist member councils.

The meeting commenced with a presentation from the OLG representatives which provided the clearest indication of what the Government is expecting from the two Councils. In particular it clarified that CGRC and SVC are subject to two different legislative pathways meaning that there are differences in what is expected from each, and what the content of the Proclamations may be. OLG advised that it is currently planning for the Proclamation affecting CGRC to be issued in April 2027, providing Council with greater certainty for transition planning.

The OLG indicated that the option of one of the councils being a continuing legal entity was not an option. CGRC submitted that, while this position may apply to Snowy Valleys Council, there appears to be no equivalent legislative restriction applying to the legislative pathway relevant to CGRC. The OLG representatives undertook to review the legislative options and the Minister’s appetite for retaining one Council as a continuing legal entity.

In response to this uncertainty, the Interim General Manager forwarded the attached correspondence (Attachment 1) to OLG outlining Council's preferred approach while also proposing an alternative should a continuing council not ultimately be supported.

Other matters discussed included:

· Funding: Attendees were reminded that only Councils on the same legal pathway as SVC were eligible to apply for funding assistance and that funding was not guaranteed and probably unlikely.

· Employee Protection Provisions of the Act: These are not triggered by CGRC’s pathway but the OLG representatives indicated that they will likely be included in the Proclamation.

· Special Variations (SV): OLG indicated that the intent was to refer to the SVs in the Proclamation, but that any proposed SV would first be approved by IPART via a yet to be determined streamlined process. OLG expects to have the streamlined process finalised by the end of July. The need to consult with Council prior to the completion of these guidelines was again raised.

· Content of the Proclamation: The discussion led to the following being listed as the minimal inclusions of the Proclamation to demerge CGRC:

o Boundary adjustment for Cootamundra and creation of Gundagai, subject to the caveat mentioned above

o Successor councils formed, named and commence on 1 July 2027

o Appointment of Administrators - Administrators to be the councillors from each successor Council area

o A requirement for the election of a Chief Administrator by the Administrators

o Appointment of Council appointed GMs-Designate.

o Special Variation (SV) as approved by IPART

o Statement that the successor councils will be un-subdivided (ie. no wards)

o First general election to coincide with the local government elections scheduled for September 2028 rather than within 12-months as required by the Act.

Council’s DTM stressed that an objective of CGRC’s demerger transition project was to ensure that the two successor Councils were operationally effective from day one. The DTM indicated this was hard to achieve without a legal entity to enter into contracts, open bank accounts and employ staff. The DTM raised the option of two Proclamations, with the first creating Gundagai Shire Council by excising a small portion of land from within the former Gundagai Shire. This would create a legal entity, overseen by the current Council. The OLG had not considered this option and undertook to review the possibility. They did suggest that even if it was correct that there was a legal pathway it was possible that the Parliamentary Counsel and / or the Minister would not agree with it.

Council reiterated that its primary objective is to minimise disruption to community services throughout the demerger process. It was emphasised that this is best achieved by ensuring the successor councils are fully operational from 1 July 2027, even if doing so requires additional work by the State behind the scenes prior to the Proclamation taking effect.

The meeting provided valuable clarification regarding the Government's intended approach to the demerger and confirmed a number of assumptions underpinning Council's transition planning. Importantly, however, several matters remain under consideration by OLG, particularly the legal structure of the successor councils and the content of the Proclamation.

Council officers will continue to engage with LGNSW and OLG as these matters are progressed and will report further developments to Council as additional information becomes available.

Financial

Nil

OLG 23a Guideline consideration

N/a

Demerger Transition Committee Meeting Agenda

14 July 2026

5.1.4 Financial Sustainability Plan Schedule

DOCUMENT NUMBER

476325

REPORTING OFFICER

Peter Bascomb, Demerger Transition Manager

AUTHORISING OFFICER

Roger Bailey, Interim General Manager

RELEVANCE TO COMMUNITY STRATEGIC PLAN

4. Collaborative and progressive leadership

4.4 Recognised as a premier local government Council that represents and advocates for community needs

FINANCIAL IMPLICATIONS

There are no additional financial implications associated with this report.

LEGISLATIVE IMPLICATIONS

There are no Legislative implications associated with this report.

POLICY IMPLICATIONS

There are no Policy implications associated with this report.

ATTACHMENTS

1. FSP Project Schedule ⇩

Recommendation

That the Committee notes the report in relation to the Financial Sustainability Plan Schedule.

Introduction

This report provides the Committee with the Financial Sustainability Plan (FSP) project schedule agreed with the Committee’s approved contractor, Always Thinking Advisory (ATA).

Discussion

Attachment 1 shows the overall schedule, which is broadly consistent with the timeline included in the RfT documents endorsed by the Committee.

The objective remains to have the FSP and related documents completed ready for endorsement by Council at its December 2026 meeting, in time to submit to the Office of Local Government (OLG) by mid-December.

Staff have been working hard over the past weeks to ensure that the timelines are met, with a significant portion of the data required already entered into the comprehensive data collection sheets.

From the Committee’s perspective the key dates, highlighted in green in the attachment, are the following Committee meetings:

· 11 August 2026

· 8 September 2026

· 13 October 2026

· 10 November 2026

· 24 November 2026 (extraordinary meeting)

It was a requirement of the RfT that appointed consultant, namely ATA consultant Peter Tegart, be on site for all those meetings.

Financial

There are no additional costs because of this report.

OLG 23a Guideline consideration

N/a