Shire of Coolgardie to sell controversial workers village to raise cash after minister blocks big rates hike

The Shire of Coolgardie will sell its controversial Kambalda workers accommodation village to improve cash flow and reduce debt in the wake of the Local Government Minister blocking its proposed huge mining rates hike. Shire president Malcolm Cullen on Thursday said the shire took responsibility for its current financial situation but was expecting millions of dollars in savings after instituting a range of measures from last December and was moving forward with “a more moderate rating strategy”. Notably, on one of the primary causes of the shire’s $6 million 2024-25 budget deficit crisis — Bluebush Village — Cr Cullen said it planned to sell the workers accommodation facility. The shire has been forced to change tack after Local Government Minister Hannah Beazley last week refused to endorse the shire’s near-doubling of the unimproved value mining rate for the 2025-26 year. In making the decision, Ms Beazley had some harsh words for the shire, saying it should treat ratepayers with respect and not “as a cash cow to get out of trouble”. “The Shire of Coolgardie needs to be accountable for the decisions that have led to its dire financial situation,” she said. Cr Cullen said the council had previously acknowledged and accepted responsibility for the current situation and “deeply apologises” to the community. He said the shire fully understood and respected its stakeholders’ concerns and the minister’s comments but it was never seeking to use the mining sector as a “cash cow”. “(Rather our aim was to) deliver a budget that would enable the shire to get back on track as quickly as possible, with full consideration for the mining sector as the main beneficiary from the increased differential rating,” he said. Cr Cullen said during the past nine months the shire had acted to rebuild under the direction of acting chief executive Aaron Cook, which had resulted in savings in a variety of areas. Cr Cullen said the council would consider a proposal for Mr Cook to begin the process of selling Bluebush Village at its June meeting next week. “The sale of this property will significantly reduce the shire’s outstanding loans, restore normal debt ratios and improve cash flow,” Cr Cullen said. Mr Cook assumed the position of acting chief executive last November after the council suspended then-CEO James Trail pending an investigation into unspecified allegations against him. The council accepted Mr Trail’s resignation in April, at the time saying the investigation into him would continue. Mr Trail was the architect of the plan to build Bluebush Village, which went ahead in 2022 against considerable community opposition with the intention of creating a new revenue stream for the shire and reduce pressure on ratepayers. However, it was revealed in March this year that the village was in fact a major cause of the shire’s 2024-25 closing budget position blowing out to a deficit of almost $6.64m from the originally forecast $627,000. Mr Cook said a budget adjustment of $3,004,999 was needed because of reduced rental from lower occupancy levels at the village, while there was also $548,000 in additional management and maintenance costs and an extra $250,000 for provision of electricity and water. This came to $3.8m in total. Area of savings identified by Cr Cullen on Thursday included refinancing of loans (savings of $1.8m to date), adjustment to waste facilities’ opening hours (potential savings of $500,000 per annum), non-replacement of staff vacancies (estimated savings of $400,000 for 2024-25), reduction in contracts (savings of $300,000 for 2024-25), reduction in contractors (savings of about $1m for 2024-25), stricter controls on non-essential purchasing (estimated savings of $500,000 for 2024-25), and deferral of projects (savings of $550,000 for 2024-25). The shire chose in April to increase its ANZ loan by $4m to $12.5m, saying if it did not it would not remain solvent until rates income started flowing in August.