COGG’s role in regional alliance in doubt

THE CITY of Greater Geelong is reviewing its involvement in the Geelong Regional Alliance (G21) ahead of its 2023/24 budget, in a move that could cause a major shake-up to the local partnership.

COGG is weighing up whether it will remain part of the alliance for the next financial year as it searches for savings in its yearly spending plan that is under pressure from rising operating costs.

The city accounts for about three-quarters of G21’s funding contributions from local municipalities and a third of its total budget, meaning it pulling out would have significant implications for the organisation’s structure.

G21’s current memorandum of understanding (MoU) states that councils have until the end of March each year

When asked about the city’s approach to its G21 involvement beyond this financial year, COGG customer and corporate services director Bryce Prosser said all of its funding agreements were under the microscope.

“As part of our budget process each financial year we review all of our funding contributions, which includes our arrangement with G21. This process aligns with the memorandum of understanding in place between G21 and its member councils,”

“Any change to funding would require a decision of council.”

A G21 spokesperson indicated the organisation would continue its discussions with member councils until the coming year’s financial plans were settled.

“Funding consideration takes place annually across all G21 councils under the terms of the MoU agreement.

“Funding discussions by LGAs are usually finalised in the first half of the calendar year.”

G21 is a planning and advocacy body for local government, business and community organisations that covers Geelong, Queenscliffe, Surf Coast, Golden Plains and Colac Otway council areas.

It sends delegations from local government to state and federal parliaments for meetings with senior ministers and opposition members to promote local issues and agitates for big-money projects; with the arrival of the Spirit of Tasmania, funding for Great Ocean Road upgrades and a region-wide social and affordable housing strategy listed among its recent achievements.

The organisation’s current MoU, which is due to expire at the end of June 2024, states councils usually decide by the end of March whether to honour their yearly financial commitments.

“The G21 CEO will consult with member council CEOs prior to establishing annual contributions to allow for budget considerations. This will occur by March 31 annually or as agreed with individual councils,” the document states.

Council contributions are the largest source of income for G21 according to its financial reports.

Its most recent annual report from 2022 indicated $678,000 of its $1.55-million total revenue came from member councils. Other members and grant funding from governments of community foundation accounts for its other financial support.

The MoU states that contributions are proportionate to each council’s population share, and that the city would be due to pay around $540,000 in 2023-24.

The contribution represents less than 0.1 per cent of the city’s annual budget, which predicted total income of $618 million ahead of the present financial year.

COGG has recently signposted difficult decisions required to balance its books in commentary on its financial position; citing inflation, rising costs including for construction and looming obligations for the 2026 Commonwealth Games as primary pressure points.