Agenda of Demerger Transition Committee Meeting

Demerger Transition Committee Meeting Agenda

13 October 2026

NOTICE OF MEETING

A Meeting of The Demerger Transition Committee will be held in the Alby Schultz meeting Centre, Cootamundra on:

Tuesday, 13th October, 2026 at 5pm

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.

MINUTES OF Cootamundra-Gundagai Regional Council
Demerger Transition Committee Meeting
HELD AT THE Council Chambers, Gundagai
ON Tuesday, 15 September 2026 AT 6:03pm

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

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

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

Nil

3 Disclosures of Interest

Nil

4 Confirmation of Minutes

4.1 Minutes of the Demerger Transition Committee Meeting held on Tuesday 11 August 2026

Committee Resolution

Moved: Cr Penny Nicholson

Seconded: Cr Rosalind Wight

That the Minutes of the Demerger Transition Committee Meeting held on Tuesday 11 August 2026 be confirmed as a true and correct record of the meeting.

Carried

5 Reports

5.1 General Manager Office

5.1.1 Report from GM-Designate Recruitment Panels

Committee Resolution

Moved: Cr David Graham

Seconded: Cr Gil Kelly

That the Committee note the report and endorse the appointment of LG Services Group Pty Ltd (ABN 606 6178 8389) by both Recruitment Panels.

Carried

5.1.2 Allocation of Council Cash Reserves between the Successor Councils

Committee Resolution

Moved: Cr Ethan Ryan

Seconded: Cr David Graham

The Committee recommends that Council allocate its 2026-2027 financial year cash reserves opening balances based on the audited FY26 closing balances and distributed between the proposed successor Councils using the percentages from the Morrison Low Advisory Cash Analysis Allocation report, namely while noting that :

· The Employee Leave Entitlement and Plant reserves will need to be recalculated as at 30 June 2027.

· Any pre-paid Financial Assistance Grants will need to be allocated based on appropriate pro-rata basis for both the General and Roads Component.

	Cootamundra		Gundagai
	%	%	%	$
Developer Contributions - General	48.0%	$702,826	52.0%	$762,826
Developer Contributions - Sewer	100.0%	$421,276	0.0%	$0
Unexpended Grants	49.3%	$892,240	50.7%	$918,999
Water Supply	14.5%	$1,220,648	85.5%	$7,206,966
Sewerage Service	98.5%	$4,961,255	1.5%	$74,381
Domestic Waste	77.0%	$2,104,848	23.0%	$629,513
Stormwater Infrastructure Renewal	93.7%	$453,106	6.3%	$30,354
		$10,756,200		$9,623,038

Employees Leave Entitlement	51.2%	$861,371	48.8%	$821,332
Plant Replacement	52.8%	$1,221,996	47.2%	$1,090,721
Waste Management	70.0%	$350,000	30.0%	$150,000
Bradman's Birthplace	100.0%	$76,337	0.0%	$0
Cootamundra Heritage Centre	100.0%	$25,882	0.0%	$0
Cemetery	50.0%	$12,886	50.0%	$12,886
Development - Land & Buildings	69.1%	$1,220,510	30.9%	$545,561
Cootamundra Caravan Park	100.0%	$215,737	0.0%	$0
Aerodrome Bitumen Resurfacing	100.0%	$160,788	0.0%	$0
Quarries & Pit Restoration	92.9%	$230,672	7.1%	$17,653
Southern Phone	100.0%	$505,598	0.0%	$0
Dog on the Tuckerbox Land	0.0%	$0	100.0%	$367,500
		$4,881,777		$3,005,653

Carried

The Meeting closed at 6:28pm.


CHAIRPERSON	INTERIM GENERAL MANAGER

Demerger Transition Committee Meeting Agenda

13 October 2026

5.1 General Manager Office

5.1.1 Correspondence from the Office of Local Government

DOCUMENT NUMBER

483270

REPORTING OFFICER

Peter Bascomb, Demerger Transition Manager

AUTHORISING OFFICER

Roger Bailey, Interim General Manager

RELEVANCE TO COMMUNITY STRATEGIC PLAN

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

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. Correspopndence from IGM to OLG 3 July 2026 ⇩

2. Response from OLG to IGM 24 September 2026 ⇩

Recommendation

That the Committee note the correspondence from the Office of Local Government dated 24 September 2026.

Introduction

The recent letter from the Office of Local Government (OLG), in response to a letter from Council’s Interim General Manager (IGM) and a meeting in Sydney on 27 August, provides clarity on some issues but is silent or ambiguous on other matters.

Discussion

OLG’s response (Attachment 2) did not provide clarity on all matters raised in the Interim General Manager’s letter (Attachment 1) or discussed during the 27 August meeting attended by the Mayor, IGM and Demerger Transition Manager (DTM). To seek further clarity, the DTM met with 3 OLG representatives on Friday 2 October.

Special Variation

The letter is silent on the matter of Council’s proposed Special Variation to Rates (SV) so it was a primary topic of discussion for the 2 October meeting.

There are two issues relating to the SV.

1. IPART’s involvement: This remains unresolved. A draft, simplified process for Council’s application for an SV was discussed with OLG representatives in July, at which time Council was advised that it would need to submit documents in September. At the time of writing, the process and its timing remain unclear.

2. SV quantum: At the 27 August meeting with OLG, Council was again advised that, if necessary, it could apply for an SV that was higher than that included in Council’s submission to the Local Government Boundaries Commission, provided it was not significantly higher. There was no clarity around the meaning of “significant”, but it was suggested by OLG that an amount equivalent to inflation would be acceptable.

At the 2 October meeting Council was advised that it was unlikely that anything other the SVs contained in Council’s submission to the Boundaries Commission.

Continuing Entity

OLG’s 24 September letter clearly states that the Proclamation(s) will create two new legal entities but not a continuing legal entity. This is contrary to the discussion on 27 August where the Deputy Secretary Local Government canvassed options to create a continuing legal entity.

Council has previously resolved to request a continuing legal entity for 2 primary reasons and, at the meeting of 2 October, the OLG was asked how Council might now resolve the two issues.

1. Completion of Financial Statements: The final set of CGRC Annual Statements need to be completed, but the OLG representatives were unable to advise how that might be done without a continuing entity. Council was advised to contact the NSW Audit Office. The NSW Audit Office advised that it was a policy matter for the OLG to resolve as they only audit against OLG established policies. The Audit Office did however undertake to see if there was a precedent in other Government areas that might provide guidance. At the time of writing, no further advice has been received.

2. Contracts: To give effect to the demerger, CGRC has entered into contracts effectively on behalf of the successor Councils. For example, Council has entered a contract with CIVICA on behalf of Gundagai Shire Council. The plan, developed in consultation with CIVICA, was for the continuing legal entity to novate the lease to Gundagai Shire after 1 July 2027. CIVICA modified its standard contract to specifically address the novation process. Without a continuing legal entity this novation process is not possible.

During the 2 October meeting, the OLG representatives proposed that a list of which contracts are to be transferred to which successor Council be included in the proclamation. It is OLG’s belief that this process will provide legal certainty to the vendors. CIVICA has referred the proposal to their legal team for advice.

Transition Plan

The 24 September letter mentions a Transition Plan is required to assist the preparation of the Proclamation(s). Council developed a comprehensive transition plan while preparing its submission to the Local Government Boundaries Commission.

The current work of the Demerger Transition Committee is directed to preparing an updated plan simplified to just cover the key elements required for the Proclamation(s). This plan will comprise:

1. Demonstration of financial sustainability (updated FSP, plus Revenue Policies & LTFPs for each successor Council to IP&R requirements)

2. Governance arrangements (names of successor councils, number of councillors, administration arrangements etc)

3. Community Strategic Plans

4. Asset allocation, including cash

5. Organisation structures

6. Contract allocation to successor Councils

7. Plan for ongoing work post-December 2026 (data migration, position descriptions, etc etc)

All these are currently underway or have already been completed.

OLG has been requested to confirm in writing that this proposed content of the plan meets their expectations.

Timing of Submission

The current schedule of workshops, Demerger Transition Committee meetings and Council meetings for consideration of DTC recommendations meant that Council’s final approval of the transition plan at the Council meeting scheduled for 8 December 2026. This schedule has previously been relayed to the OLG.

The OLG’s 24 September letter mentions a deadline for submission of the Transition Plan by 1 December.

At the 2 October meeting OLG representatives agreed that the original timeline of submitting the Plan following the 8 December Council meeting was satisfactory. OLG has been requested to confirm this in writing.

Financial

The are no additional costs associated with this report.

OLG 23a Guideline consideration

N/a

Demerger Transition Committee Meeting Agenda

13 October 2026

5.1.2 Funding the Cost of the Demerger

DOCUMENT NUMBER

483274

REPORTING OFFICER

Peter Bascomb, Demerger Transition Manager

AUTHORISING OFFICER

Roger Bailey, Interim General Manager

RELEVANCE TO COMMUNITY STRATEGIC PLAN

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

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

Nil

Recommendation

1. That the Committee recommends that Council:

(a) Determine that all costs associated with the demerger be shared equally between the two successor Councils, noting that demerger related expenditure will be incurred both before and after the commencement of the successor Councils.

(b) Note that the Financial Sustainability Plan currently under development assumes that each successor Council will fund its share of the demerger transition costs through borrowings.

(c) Note that each successor Council will ultimately determine how it will fund its share of the demerger transition costs.

Introduction

While Council has allocated a $3million to fund the demerger transition costs, it has not formally resolved how those costs are to be shared and the funding source. This report recommends an approach.

Discussion

It has been assumed, for the purposes of the Financial Sustainability Plan review currently underway, that the estimated $3million cost of the demerger transition will be equally shared between the two successor Councils and that each Council would fund the $1.5million through a 10-year loan from externally restricted reserves.

Although that assumption has been the consensus from various discussions, it is important to formally document the agreement to ensure that it can be included in the Proclamation that will create the two new Councils.

Financial

There are no financial costs associated with the recommendation.

OLG 23a Guideline consideration

N/A

REPORTING OFFICER	Teresa Breslin, Executive Assistant to Mayor and General Manager
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 15 September 2026