Geelong's state MP says the government should consider appointing administrators to run the City of Greater Geelong, due to grave governance concerns.
Labor member for Geelong Christine Couzens revealed she and other state MPs had already approached Local Government Minister Melissa Horne for "frank discussions" regarding the city.
Ms Couzens's revelations came days after the council announced redundancies and an organisational restructure, despite being led by an acting chief executive and being investigated by the Local Government Inspectorate.
Internal documents seen by the ABC show the city's dire financial situation has led to departments being instructed to stop or defer all expenditure "wherever possible" for the remainder of the financial year "to maintain our ability to operate as an organisation as well as deliver against mandatory obligations".
Ms Couzens this week said she was "shocked and disappointed" by the city's move to sack an undisclosed number of workers in the organisational restructure, which was announced on the eve of the Easter long weekend.
"I've been inundated with staff members who are quite distressed at the whole thing, and not just for themselves, for the community more broadly," Ms Couzens said.
"Given the areas that have been axed, it's really concerning."
The ABC understands about 20 positions have been made redundant.
They are primarily from the city's Community Life directorate, which provides services relating to aged, multicultural, refugees and culturally diverse groups, social housing and social equity, health planning and action on violence against women.
When questioned by the ABC, the city would not confirm how many redundancies had been announced, nor how many more were expected.
Geelong acting chief executive Kaarina Phyland said in a statement that she had been instructed by councillors "to continue all major programs of work", including a city restructure.
"With our services and budget under enormous pressure, the changes aim to ensure we continue to be financially sustainable, become more efficient and effective, and further improve how we serve the community," Ms Phyland said.
Minister Horne was asked about any concerns she held with governance at the City of Greater Geelong and the possibility of appointing administrators, with a government spokesperson responding that it “would be inappropriate to comment” during an ongoing investigation by the Chief Municipal Inspector, and noting municipal monitors had been appointed to work with the city throughout 2023.
MP says 'community should be very concerned'
Ms Couzens said the Easter timing of the restructure and redundancies was a "slap in the face" of workers and the community.
It is not the first time the Geelong MP has expressed concern about the council.
In February, she raised questions about the city's ability to pay for the Commonwealth Games and, last year, was one of five MPs to write to the council, revealing a "growing concern and lack of confidence" in the city's ability to deliver key state-funded projects.
"I think the community should be very concerned about what this council is doing and how they're doing it," Ms Couzens said.
"I've quite clearly, over time, expressed my concern about this, as have other colleagues, including the Premier.
"We've all been concerned about the direction the council has been taking, and that's going to have to be taken into consideration over the next week or so."
Ms Couzens said replacing the council with administrators was "a discussion yet to be had" within government.
"For me, personally, I would say it should be considered," she said.
Council sources concerned about restructure, redundancies
Multiple current and former city staff — all of whom asked to remain anonymous — have contacted the ABC to express their concerns with the move to restructure the organisation before a new chief executive is hired.
One council source said they were appalled at the approach taken to the restructure during the recruitment process for a new chief executive.
"This has reached a point where the place has become a nightmare for workers," they said.
Current and former staff also said the culture and morale within the organisation was the worst it had been since the city was sent into administration in 2016 for its cultural issues, amid restructure and major budget troubles.
"Morale is at an all-time low, people are fearful for their jobs. I know people are looking for work [elsewhere]," a current staffer said.
Despite this, Ms Phyland said that survey data showed "the city's culture has improved significantly since the Commission of Inquiry".
"For any organisation, undertaking major efficiency or change programs requires difficult decisions to be made by leaders and employees," Ms Phyland said.
Acting chief executive flags 'difficult decisions'
The restructure of the city includes changes to the organisation's five key directorates, including the renaming and expansion of the strategy, governance and corporate arm of the city.
Its directorate was previously led by Ms Phyland, who is expected to return as its director once a new chief executive is hired.
The ABC in February revealed concerns after a 2020 report by the city's internal ombudsman into the recruitment of staff to what was then called the strategy, people and culture portfolio.
Earlier this year, the city's financial woes were publicly laid out when the council's finances chair declared the organisation "can't afford" to provide financial support for the 2026 Commonwealth Games amid a $150 million budget blowout.
Geelong council is currently undertaking its 2023-24 budget process, with Ms Phyland revealing the city was "examining all aspects of our operation to find savings and set ourselves up to be financially sustainable in the years to come".
"This will mean our council will, unfortunately, face a number of very difficult decisions as part of this year's budget process," Ms Phyland said.
