The statement in full reads:

Hilltops Council General Manager Anthony O'Reilly met with Local Government Unions yesterday (Wednesday), in an open and frank conversation about Council's financial sustainability and the report to be presented to the Ordinary Council Meeting held last (Wednesday) night.

It was agreed by all parties that Council will commence a formal consultation process with the Local Government Unions and staff to consider options that would allow a reduction in total employment costs in a manner consistent with clause 41 of the Local Government (State) Award 2020, namely Workplace Change.

This will provide all parties an ongoing opportunity to be consulted and provide feedback to Council prior to any decisions being made, while working together to keep staff employed.

The draft Financial Statement results for 2020/21 showed a Council operational result before capital grants improvement from a loss of $(10.6)M in 2020 to $(5.9)M in 2021, a reduction of expenditure of $4.7M.

This was primarily due to $2M decreases in employee costs coupled with materials and contracts based on efficiency objectives.

This was also due to the capitalisation of $4.9m of wages for capital works carried out.

The resolution of Council is outlined as follows:

that Council:

a. Authorise the General Manager to implement an immediate recruitment freeze allowing only for recruitment of essential positions.

b. Commence a review to minimise the use of consultants and contractors to maximise internal efficiency and contain costs

c. Commence a formal consultation process with the local government unions and staff to consider options that would allow a reduction in total employment costs, in a manner consistent with clause 41 of the Local Government (State) Award 2020

d. Commence discussion with the community regarding levels of service within Council's policies and financial limitations

e. Immediately identify assets suitable for divestment purposes for Council to consider in a confidential report

f. Following the Local Government elections, immediately commence discussions regarding the consideration of a Special Rate Variation to be enacted in the 2024 financial year.

The information Council are able to provide staff at this stage is limited as there is still a lot of work to do to determine how we implement this resolution.

"I thank the Local Government Unions for their involvement in this matter and I look forward to working with them throughout this process," Mr O'Reilly said.

"I want to assure all staff that prior to any decisions being made there will be extensive consultation."