The NSW Office of Local Government (OLG) has raised concerns about whether the Yass Valley Council can repay up to $50 million in loans it has taken out to build a new council administration centre.
Deputy Secretary of the OLG, Brett Whitworth met the General Manager of the YVC Chris Berry and the Director of Corporate and Community, Lynette Safranek, on 2 October in Sydney to discuss YVC’s finances.
However, Ms Safranek, who regularly acted in Mr Berry’s role in his absence, suddenly quit last week, surprising both her boss and other YVC staff. Ms Safranek denied she left because of claims of a toxic working atmosphere within the council.
A letter dated 5 November to the Member for Goulburn, Wendy Tuckerman, from the NSW Minister for Local Government, Ron Hoenig, confirmed the meeting between the OLG’s Mr Whitworth, Mr Berry and Ms Safranek.
He wrote that Mr Berry was directed to inform the new councillors “of the financial challenges faced by the council and its capacity to fund projects such as Crago Mills and the Yass Water Treatment plant upgrade”.
Residents have been complaining for years about regularly finding brown, smelly water coming out of their household taps. The problem has been blamed on the town’s old water treatment plant which needs a multi-million dollar investment to keep up with the town’s rapid expansion.
The council was also advised to look at a special rate variation, that is, a rate increase, “for specific projects”.
“This is a consequence,” Mr Hoenig wrote, “of a significant mismatch between demands for new expenditure and council’s revenue base.”
He also urged the council to employ a new chief financial officer, a post which has been vacant since last year. It is understood that this is the subject of an unfair dismissal action.
A high vacancy rate within the council has also been linked to claims of a toxic working atmosphere.
At the last council meeting, councillors were told there were 16 current vacancies, plus 25 unfunded positions. With a full-time staff at YVC of about 120, the job vacancy result is almost 30 per cent.
Such a staffing shortfall has already translated into council’s ability to deliver services with, for example, rubbish pick-ups now reduced in Murrumbateman, with some drivers doing double shifts just to get the job done. Council is currently advertising for four casual drivers and six waste transfer officers.
YVC general manager Chris Berry said on Thursday (14 November) that a Financial Update Report would go to the next council meeting on 28 November. He also said the Deputy Secretary of the OLG would address YVC at its December meeting.