Coolgardie Shire Council has narrowly avoided suspension after responding to a show cause notice issued by the State Government.
Local Government Minister Hannah Beazley has announced she will not suspend the council, despite serious concerns about the Shire’s financial management and governance.
The council was required to explain why it shouldn’t be suspended under the Local Government Act, after a notice was issued in late August.
While Minister Beazley acknowledged the council has made some initial efforts to address its financial challenges, she warned that significant risks remain.
The Minister has set strict conditions: all council members must complete financial management training, and the Shire must provide regular updates on its Financial Recovery Plan to the Department of Local Government.
Minister Beazley said it’s “deeply disappointing” that substantial State intervention was needed to get the council to be accountable, adding that she’ll give the Shire up to 12 months to get its house in order.
The Shire’s financial position will be closely monitored over the next year, with the priority being stable governance and essential services for the Coolgardie community.