The KPMG study into a single Tamar Valley Council has been paused while George Town undertakes an organisational review.
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Merger talks began in April, with mayors Bridget Archer and Christina Holmdahl calling on Local Government Minister Peter Gutwein to help fund a pre-feasibility study.
The full organisational and service delivery review was announced in July, when the George Town Council approved a budget with an underlying deficit of $1,122,500.
“The organisational review is currently underway and it is anticipated that a revised budget will be presented to council at its November meeting,” Cr Archer said.
“It was considered that the data that informs the study may be materially changed by the organisation review.
“The process has been slightly delayed in the interests of having accurate, up to date information informing the study.”
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The study into the merger between George Town and West Tamar Councils will continue once the council adopts its updated 2017-18 budget.
West Tamar general manager Rolph Vos provided an update to his council at its Tuesday meeting.
He said the design to pause the study did not influence the council’s commitment to amalgamation talks.
“I don’t think it will be very long, we have done a lot of work already and we are getting well down the road,” Mr Vos said.
“In the meantime I am still procuring submissions around the community engagement process that we might use once the report in finalised and I am just trying to get ahead of the game so we can keeps things moving.
“There is no doubt that assuming that is is a positive report, and both councils deem fit to receive it and take it to the community, we need a strategic around how we are going to best engage with the community.”
The municipality of George Town has a population of 6,802 and West Tamar has a population of 23,202.
When announcing the merger talks Cr Holmdahl said the areas formed the heart of the Tamar Valley and amalgamation was a “natural progression”.