Shire of Coolgardie defies WA local government minister over proposed merger

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3 days ago

A debt-laden outback council has threatened legal action to hold off a would-be merger with its larger neighbour.
Local Government Minister Hannah Beazley rose in state parliament in June to slam "gross mismanagement" at the Shire of Coolgardie, which she described as a "financial mess" amid concerns about its ongoing viability.
Council documents show the the shire owed creditors $2.8 million at June 30, while carrying debt of $27.5 million with just $2.9 million cash in the bank.
Ms Beazley proposed a "boundary adjustment" with the neighbouring City of Kalgoorlie-Boulder, but has since been inundated with letters from ratepayers in both communities opposed to the merger.
Coolgardie councillors on Monday endorsed a position paper detailing its fight to maintain its independence.
The shire said it would "explore its legal position" should Ms Beazley force an amalgamation.
Shire president Malcolm Cullen said the council wanted to work with the Department of Local Government over the next 12 months while trying to achieve financial and organisational stability.
Mr Cullen and Kalgoorlie-Boulder Mayor Glenn Wilson were due to fly to Perth on Tuesday morning for another meeting with the minister after she told both councils to reach a joint position at a meeting last month.
"The position that we will be taking to the meeting is basically to provide the shire more time to look at enacting a financial recovery plan that will return the shire to financial stability and also organisational stability for the future," Mr Cullen said.
"Certainly, just request that there be a bit a little bit of breathing space so that both the Shire of Coolgardie and the city can work through a number of issues that have been identified in discussions so far."
City of Kalgoorlie-Boulder councillors discussed the proposed boundary adjustment behind closed doors at Monday night's ordinary council meeting, where the council also endorsed its 2025-26 Budget.
Mayor Glenn Wilson said a boundary adjustment was a legislative process which was different to an amalgamation or merger.
He said the Shire of Coolgardie would be dissolved if the action went ahead.
He said the council had been asked by the minister's office to keep its formal position confidential until after Tuesday's meeting.
But Mr Wilson did concede there was little to be gained by taking on the Shire of Coolgardie's mountain of debt.
"There has to be nothing that our residents pay for out of this … our residents and our community should not bear the brunt of others' debt," he said.
The Shire of Coolgardie has already proposed the sale of a controversial workers' accommodation village in Kambalda, which was built in 2022 by the council to take advantage of the Goldfields' most recent mining boom.
The 328-room Bluebush Village was last valued in March in the range of $16.4 million to $19.4 million.
Occupancy rates were as low as 25 per cent earlier this year.
The shire said it planned to advertise Bluebush Village for sale by public tender from next month, evaluate offers in November and make a final decision on a proposed transaction in January.
Mr Cullen said early estimates suggested the sale would lower debt to manageable levels.
"It's in the ballpark, it's a ballpark figure," he said.
Residents of both the Shire of Coolgardie and City of Kalgoorlie-Boulder have voiced their opposition to the merger in letters to the minister's office.
Kambalda real estate agent Cheryl Davis requested the minister delay a decision until the shire's financial situation was properly assessed.
She said the shire was making positive strides in operational improvement and renewed community engagement.
"These early signs of progress are encouraging, and we believe the shire should be given a fair opportunity to continue this momentum without the added pressure of structural changes at this time," Ms Davis said.
Kalgoorlie business owner Greg Bowden told the minister it would be "unfair and impractical" to expect the City of Kalgoorlie-Boulder to take on responsibility for another local government while dealing with "its own internal challenges".
"The risk of further instability and long-term financial pressure on both communities is real if this is rushed," he said.
Fellow Kalgoorlie business owner John Bruce was concerned an amalgamation would place an "unfair and unsustainable burden" on ratepayers and businesses in Kalgoorlie-Boulder.
"Our city should not be expected to absorb the consequences of long-term mismanagement, nor take on liabilities and debt accumulated by another local government without adequate assessment and consultation."
Coolgardie RSL sub-branch secretary Ann Meagher told the minister Coolgardie was "more than just a dot on the map".
"We have weathered storms before, and while we acknowledge the current challenges faced by the shire, we truly believe there is still time and opportunity to turn things around," she wrote.
The Parents and Citizen Association at Coolgardie Primary School also wrote to the minister with an urgent request to delay any boundary changes.
"We are considering the children of Coolgardie and the impact amalgamating with Kalgoorlie will cause," Coolgardie P&C president Coriana Boothey said.
"It is a major concern that as a small community and small school that we will be left behind and not receive the support we are in need of."