Data centre warning, CEOs depart, and councillors reprimanded – ft. Greg McDonald #546

Interview New episode News

Today on the Local Government News Roundup:

  • An urgent call for action on data centres
  • Legal threats over grant funding at a Melbourne council
  • A disturbing increase in abuse of Council lifeguards
  • Albury Council parts ways with its long serving CEO
  • Urgent water supply issues for two NSW councils
  • Tasmanian councils criticised for their handling of gifts and donations
  • Adverse conduct findings for two South Australian councillors
  • and a WA council CEO departs after less than two years

The General Manager of Upper Hunter Shire Council, Greg McDonald sets the record straight after misleading media reporting of the council’s financial position.

The Roundup is brought to you by the Victorian Local Governance Association, the national broadcaster on all things local government; with support from Symphony3 – simple, connected customer experiences.

Listen to the episode here.


Read along with all the news, and find story links from this episode:

Victorian Report

Melbourne Lord Mayor Nick Reece is calling on governments to take urgent action on the environmental impact of data centres.

ABC News reports that he’s warned data centres are the biggest challenge to hit our energy systems since air conditioning was introduced in the 1950s.

Cr Reece says the boom in AI and cloud computing has driven massive demand for vast server warehouses, and right now there aren’t proper regulatory frameworks in place to manage their water and energy consumption.

Last night, the City of Melbourne voted unanimously to push for transparent monitoring requirements and better oversight from state and federal governments.

It comes as the Victorian government positions the state as a global leader in ethical AI, with Premier Jacinta Allan saying she wants Victoria to be “the data centre centre”. The government estimates the state’s data centre pipeline could be worth up to 25 billion dollars.

Meanwhile, the Age reports that the council last night passed the Lord Mayor’s “you break it, you buy it” vandalism policy, seeking to recover costs from those that vandalise statues and memorials.

The council will also implement new security measures during high risk periods, including guards, fencing and increased CCTV.

Kingston Council has been threatened with legal action under Australia’s new hate speech laws according to the Herald Sun, after a councillor attempted to stop ratepayer funding to a religious organisation.

Councillor Caroline White’s motion to halt seventy-five thousand dollars in grants to the Druze Community Charity of Victoria failed to gain support at Monday’s council meeting.

The controversy stems from a decision by the previous council in June 2024 to fund a cultural festival in Keysborough – outside Kingston’s local government boundary.

Councillor White questioned why Kingston ratepayers were funding a Dandenong-based religious organisation when many residents are struggling financially.

The Druze Community Charity called the attempt to remove funding discriminatory and anti-Semitic, saying their members who live and pay rates in Kingston feel targeted and unfairly treated.

The organisation is now seeking legal advice on available options, including under Australia’s recently passed hate speech laws.

Council staff had warned that excluding a single organisation from funding could pose legal and reputational risks.

Lifeguards across Campaspe Shire have reported 21 incidents of harassment and abuse over the past year, with six already recorded in 2026.

The council is warning people to behave at the pool, or risk losing access altogether.

Council’s Director of Communities, Jo Bradshaw, told the Riverine Herald that most of the abuse stems from patrons refusing to follow basic safety rules, particularly around child supervision.

The majority of staff targeted are under 21 years old.

If the behaviour continues, council says it won’t hesitate to temporarily close pools as a “cool-off” measure — and in extreme cases, permanent closure remains on the table.

There’s also concern the abuse could trigger a staffing crisis, making it harder to fill rosters as student lifeguards return to university.

Warrnambool City Council has endorsed a business case for the redevelopment of AquaZone Aquatic and Leisure Centre, the city’s only major public aquatic facility.

AquaZone has been serving the Warrnambool community for over 60 years, attracting more than 200,000 visits annually from families, schools, sporting clubs, older adults, and people with disabilities.

However, key components of the facility, including the outdoor 50-metre pool, have reached the end of their useful life.

Following extensive community consultation, Council voted unanimously to support a two-stage redevelopment on the existing site, including replacement of the outdoor 50-metre pool.

The business case will now be used to advocate for state and federal funding.

Mansfield Shire Council is working to remove fire-damaged roadside trees that pose safety risks, with qualified arborists assessing structural integrity and removing only dangerous trees while preserving ecological balance.

The recovered timber will be repurposed at no cost for fence posts, firewood, and habitat restoration for properties affected by the Longwood fire, supported by Disaster Recovery Funding Arrangements and at no cost to ratepayers.

The community of Harcourt in Mount Alexander Shire is mounting a campaign to bring music act Tones and I to the town.

It follows a challenge from the singer, who has offered a full-production show to the Australian town with the most online engagement.

We recently reported the success of a community campaign in Hinchinbrook Shire in Queensland, which has secured a concert from the pop star to take place next month in Ingham.

Mount Alexander Mayor Toby Heydon has lent his… support to the campaign, appearing in a new Facebook video strutting his stuff; busting some moves; getting his groove on to “Dance Monkey” – from his office, out into the street.

Watch it, if you dare.

Victorian Briefs

It’s a Total Fire Ban for parts of Victoria today. In anticipation of extreme heat, Yarriambiack Shire Council’s transfer stations at Warracknabeal and Minyip will operate for the first 2 hours only.

Cardinia Shire Council announced that the Pakenham Lakeside fountain has been temporarily turned off from this week.

It’s due to low water levels caused by high temperatures and drying winds, which risk damaging the fountain’s motor and lights.

The Council will monitor the situation and hopes to restore the fountain once rainfall improves water levels in the lake.

Hepburn Shire Council is offering residents a $50 voucher to purchase reusable nappy, period, and incontinence products through partner business Darlings Downunder.

The initiative aims to reduce upfront costs for residents, and make sustainable choices more affordable.

660 million disposable products sent to Australian landfills annually.

NSW Report

Albury City Council has decided that long-serving CEO Frank Zaknich will not be returning to his role. The announcement came after an extraordinary council meeting held behind closed doors last week.

Mr Zaknich, who has been on unplanned leave since early December, led the council for more than a decade after joining in March 2013.

Mayor Kevin Mack addressed the media, and said the decision was because of a “lack of energy”, confirming that it would come at a cost of thousands to the council.

In a statement, Council thanked Mr Zaknich for his years of service and contribution to the Albury community.

The Border Mail reported that the decision to part ways with Mr Zaknich was not unanimous.

Gael Evans-Barr will continue as Acting CEO, with an interim chief executive expected to be appointed by mid-February.

Councillors say they have confidence in the senior leadership team and that the focus remains on financial sustainability and delivering key programs.

Glen Innes Severn Council has submitted a Special Rate Variation application to IPART proposing a 48.3% rate increase over three years to address financial sustainability, maintain essential services, and renew aging infrastructure.

Mayor Margot Davis acknowledged the community’s opposition to rate increases but says the council has been left with no alternative due to systemic funding issues.

Cr Davis stated, “… we are being forced to make decisions in a system where costs are rising and funding from other levels of government has not kept pace.”

The mayor has previously written to Prime Minister Anthony Albanese to highlight the inequity in the funding system and calling for Financial Assistance Grants to be restored to at least one per cent of Commonwealth taxation revenue.

IPART will independently assess the application and invite public submissions, with a determination expected in May/June 2026.

Upper Hunter Shire Council General Manager Greg McDonald says a report in the Newcastle Herald that the council was considering service and staff cuts is misleading.

The Herald claimed to have obtained a leaked email suggesting the council was considering staff cuts, but Mr McDonald told the Roundup that’s not the full story.

He joins me later in this episode for a discussion about the work being done at Upper Hunter to maintain essential services while working toward long term financial sustainability.. as well as his advocacy for better funding solutions for rural and regional councils like Upper Hunter. Stay tuned for that conversation, coming up soon.

An audit of NSW councils has revealed that three in four major infrastructure projects costing over $30 million are delivered late or over budget, according to the Sydney Morning Herald.

Examples include the North Sydney Olympic Pool which faces four years of delays and $60 million in cost overruns.

The report highlights that councils are struggling with financial sustainability, outdated project management guidelines, and increasing dependence on unpredictable grant funding, prompting recommendations for updated frameworks by mid-2027.

The United Services Union is calling for increased federal funding to support NSW councils in maintaining essential community services, particularly early childhood education centres, which are being cut due to financial pressures from rate pegging and cost-shifting.

In its submission to a House of Representatives inquiry into local government sustainability, the union demands that federal financial assistance grants be restored to at least 1% of Commonwealth tax revenue and that funding prioritise council-run childcare to ensure quality care over for-profit providers.

Berrigan Shire Council has reassured the Finley community that the town’s treated water remains safe to drink after a power outage at the water treatment plant caused temporary cloudiness due to flocculant entering the system during restart.

The Council has completed a full network flushing program to resolve the issue, and water quality continues to meet Australian Drinking Water Quality Standards with daily monitoring in place.

Residents have been asked not to interfere with flushing equipment and to contact Council if they notice any ongoing localised issues.

Meanwhile in Kyogle, in the Northern Rivers region of the state, the council issued an urgent request yesterday for residents to conserve water as much as possible after a water outage, the cause of which is still under investigation.

The council said reservoir levels are slowly rising, and residents should run household taps for a few minutes to clear residual air and discolouration before using the water.

NSW Briefs:

Griffith City Council has endorsed paid parking fees for Griffith Regional Airport, with rates including a free first hour, then $2.50 hourly, $12 daily, and $65 weekly once the new ticketless LPR system becomes operational in coming months.

The fees are benchmarked against comparable regional airports and will help manage airport operating costs without impacting the General Fund.

Northern Beaches Council has announced that its Manly Library now offers 24/7 access to members over 16 who have completed an on-site induction.

It follows a successful trial that saw over 20,000 visits in 24 weeks.

The initiative is funded by the State Library of NSW.

Warrumbungle Shire Council has welcomed data showing that the Coonabarabran Visitor Information Centre ranked third in NSW for walk-in visitors during July-September 2025.

With more than 25,000 visitors, the centre ranked behind only Echo Point and Snowy Region centres.

The council said the strong performance reflects growing interest in the Warrumbungle region’s nature-based tourism offerings, including dark sky experiences and national park attractions.

Queensland Report

The City of Ipswich has officially hit 270,624 residents, adding nearly 10-thousand people in just 12 months.

Mayor Teresa Harding says boom suburbs like Springfield, Spring Mountain and Ripley are driving explosive growth, with Ripley almost doubling its population to over 19-thousand in four years.

The city added 877 new dwellings in the final quarter of 2025 alone.

Ipswich is on track to become a city of 530-thousand within 20 years, requiring another 100-thousand homes.

Toowoomba Regional Council has sold two hectares of surplus land at the former Council Nursery site in Middle Ridge for 6 million dollars.

CJAM Group purchased the site following an open tender process and is expected to lodge a development application later this year.

The contract includes covenants to prevent land banking and ensure timely development.

Council has built in a buy-back clause allowing it to repurchase the land at the original price if key milestones aren’t met.

Townsville City Council is cracking down on vandalism at its 60-plus public toilet blocks after spending more than 350-thousand dollars on repairs last year.

Mayor Nick Dametto says arson, graffiti and littering have forced sudden shutdowns at facilities that recorded over half a million visits in 2025.

The council is urging residents to report criminal behaviour to police and vandalism through the Snap, Send Solve app.

The Queensland Government is investing 6 million dollars to create 300 new council traineeships and support 100 apprenticeships across 64 councils.

Finance Minister Ros Bates says each position comes with a 15-thousand dollar wage subsidy to ease cost-of-living pressures.

82 percent of positions are in regional and remote Queensland, including 46 regional councils and 11 First Nations councils.

Fraser Coast Council has confirmed that up to 300 kilograms of dead fish have been found this week in two main areas of Lake Kalvert at Toogoom.

Council teams have been on site retrieving the fish and undertaking water quality testing.

In a statement, it said the deaths are likely due to elevating temperatures, leading to reduced oxygen levels in the water.

It’s understood state officials are also dealing with dead birdlife, including ducks, at the lake.

Tasmania

Tasmania’s Integrity Commission has uncovered serious gaps in how local councils track gifts and donations to staff and councillors.

A new audit found just 600 gift declarations recorded across all 29 councils over the past 12 years – with the four largest municipalities accounting for nearly 70 percent of entries.

Two councils had no public gift register at all, and many registers haven’t been updated since 2022 – despite a legal requirement to update them monthly.

Integrity Commission CEO Ellen McKenzie says the findings point to “several misconduct risks.”

The commission is particularly concerned about smaller regional councils, where residents have more direct contact with elected members – making them “highly vulnerable to corruption” through undisclosed gifts.

The review also highlighted that Tasmania is the only state that doesn’t require local government candidates to declare campaign donations before being elected – a loophole the government promised to close in 2018 but hasn’t yet acted on.

The Integrity Commission is now seeking public submissions on potential reforms, including whether to introduce a statewide model policy for gift disclosure. Submissions close Monday, March 2nd.

Pulse Tasmania; Hobart Mercury

Hobart Lord Mayor Anna Reynolds has indicated she is likely to run for re-election in the October council elections, according to Pulse Tasmania.

A win would extend her tenure to over a decade as the third woman to serve as the city’s Lord Mayor.

First elected as an alderman in 2014 and as lord mayor in 2018 with 63% of the vote, Ms Reynolds successfully defended her position in 2022 with 53% of the final vote against challenger John Kelly.

Clarence Mayor Brendan Blomeley has firmly ruled out running as a One Nation candidate when he seeks re-election later this year, confirming that he will as an independent candidate.

The Mercury reported that Mr Blomeley confirmed being approached, but he has described party politics as a “dysfunctional cesspit” and said he has no intention of returning to any political party after 33 years of membership.

One Nation is currently in the process of registering as a political party in Tasmania ahead of the local government elections.

South Australia

Adelaide City Councillor Henry Davis has been formally censured and ordered to apologise after an investigation found he breached behavioural standards eight times.

The Advertiser reported that the controversy stems from an Instagram video Davis posted in July last year, in which he claimed a committee chair earned “fifteen hundred dollars an hour” for a meeting she didn’t attend, and suggested councillors could secure such positions by “making some friends”.

An independent investigator found the video was disrespectful, misleading, and filmed in a restricted Town Hall area, constituting misuse of council resources.

The video sparked a defamation battle with two colleagues who accused Davis of misogyny. Davis, a lawyer, successfully argued his video critiqued committee fees, not gender, and received settlements from both councillors.

Cr Davis has until February twenty-sixth to issue the apology at a council meeting.

A Barossa Valley councillor has been formally reprimanded after a year-long pattern of offensive behaviour that cost local ratepayers tens of thousands of dollars.

According to the Advertiser, Bruce Preece from The Barossa Council has been ordered to publicly apologise after breaching behavioural standards five times throughout 2024.

The misconduct included using a homophobic slur during a discussion about an AFL player’s suspension, walking out during acknowledgements of country on five occasions, and turning his back during a smoking ceremony at an Australia Day event.

The Behavioural Standards Panel also found Cr Preece made inappropriate comments about “wasted ratepayers’ money” at a recreation park opening and mocked a fellow councillor.

The investigation cost the Barossa Council forty-seven thousand dollars. A panel has issued a public reprimand and ordered Cr Preece to reimburse the council eight hundred and ten dollars.

Cr Preece has previously defended his actions, citing health issues for his walkouts and describing the slur incident as “friendly football banter.” He’s now taking legal advice and considering legal proceedings.

Wattle Range Council CEO Ben Gower has signed a new five year contract, extending his tenure at the council through April 2031, according to a report from SE Voice.

The new deal follows favourable completion of an annual performance review last year. He joined the council in the CEO role in 2016.

Western Australia

The City of Nedlands has confirmed its former CEO Keri Shannon has officially parted ways with the council.

PerthNow reported late yesterday that Ms Shannon’s final day was January 30th, bringing an end to a tumultuous tenure that began in May 2024.

The former Town of Cambridge mayor had been on indefinite leave since October following a confidential performance review by the city’s commissioners.

Her departure comes ahead of local elections in March 28th when voters will choose a new mayor and council following the dramatic dismissal of the previous council by Local Government Minister Hannah Beazley.

Acting CEO Arthur Kyron will continue in the role until the incoming council appoints a permanent replacement.

The City of Belmont‘s Verge Garden Program is back for another year.

The program offers residents free starter kits with native plants, mulch, and supplies, plus expert workshops to help transform street verges into sustainable, waterwise gardens that support local wildlife.

Applications are now open for a limited number of places.

Global Report

NZ:

Auckland Mayor Wayne Brown is rallying councils nationwide against the Government’s proposed rates cap, warning it could force councils to cut essential services and hike user fees.

Newsroom reported that Prime Minister Christopher Luxon and Local Government Minister Simon Watts met with Mayor Brown on Monday night to discuss Auckland’s funding deal. While they’ve agreed to omit the rates cap from that specific agreement, the Government still plans to impose it through legislation.

Brown argues the cap is unfair, pointing out that over the past five years, central government taxation has increased by 48.5 percent — about 40 billion dollars — while Auckland rates rose just 41 percent, less than a billion.

Eighteen councils have submitted opposition to the proposed cap, warning of serious consequences.

UK:

A cyberattack on Kensington & Chelsea Council in late November that disrupted IT systems across three central London councils, has blocked property searches and planning applications that could prevent billions in stamp duty from reaching the Treasury.

The attack affected Kensington, Westminster, and Hammersmith & Fulham councils, which together processed £1.5 billion in stamp duty during the 2024-25 tax year.

Many property transactions are now delayed as councils attempt to handle processes manually, according to MSN dot com.

An independent investigation has found six Tameside Council members breached their code of conduct through participation in a WhatsApp group.

The group, called ‘Trigger Me Timbers’, reportedly contained racist, anti-Semitic, sexist, and threatening messages.

The councillors were found to have violated multiple conduct obligations including failing to treat others with respect, bringing the council into disrepute, bullying, discrimination, and misusing council resources.

A council standards committee is due to consider the findings of the investigation this week.

USA:

Chicago Mayor Brandon Johnson is pushing for local government processes to investigate and potentially prosecute federal immigration agents.

Cities 929 dot com reported that the push follows the approval of an amendment allowing the Civilian Office of Police Accountability to investigate police officers who violate the city’s welcoming city ordinance.

Mayor Johnson has accused the Trump administration of directing federal agents to use lethal force and called for local action against what he described as federal overreach.

Santa Monica, California, has become the first U.S. city to equip parking enforcement vehicles with artificial intelligence-powered camera systems to automatically detect and ticket bike lane violations citywide.

The Hayden AI technology uses computer vision to capture potential violations for human review.

Streetsblog reported that the aim is to improve cyclist safety by deterring illegal parking that forces riders into vehicle traffic.

PAKISTAN:

To Pakistan, and political tensions are escalating in Karachi, where the Tribune reports the wheels are motion for a no-confidence motion against Mayor Murtaza Wahab, in the wake of last month’s devastating Gul Plaza fire that killed 80 people.

The Opposition party Ji, which controls 127 council seat, says 29 women councillors have already signed the proposal in its first phase and is reaching out to other opposition parties to build broader support.

The opposition has sharply criticised Mayor Wahab’s handling of the tragedy, questioning why the mayor was attending events in Islamabad while funerals were being held in Karachi.

Under the Sindh Local Government Act, if the motion succeeds, Wahab would be barred from contesting the resulting mayoral election. The motion is expected to be formally submitted between February 8th and 10th.

Roundup Extra:

Greg McDonald, General Manager – Upper Hunter Shire Council