Council
14 November, 2025
Monitor cites councillor conflict, organisational impacts at HRCC
The long-awaited Municipal Monitor's Report on Horsham Rural City Council has been publicly released, highlighting dysfunctional relationships, a late budget lodgement, staff polarisation and organisational impacts.
Following 87 complaints about HRCC across the 2020-2024 council term to the Local Government Inspectorate, former Local Government minister, Melissa Horne, appointed Steven Kingshott to monitor the HRCC on August 13, 2024.
The Monitor's appointment lasted from September 2, 2024, to June 30, 2025, during which he addressed concerns raised with the Local Government Minister, Nick Staikos.
Mr Kingshott acknowledged that there were significant issues at play within HRCC at the time of his appointment, including the resignation of the then-CEO, Sunhil Bhalla, dysfunctional relationships between councillors, and a failure to adopt the budget within statutory deadlines.
The Monitor also noted a prolonged and sustained negative media in some print and social media, a second letter of complaint from the ASU, an orchestrated vote of no confidence from some of the staff against the CEO, and staff polarisation, silos, and organisational impacts during his time.
Acting mayor Brian Klowss said the council welcomed the report and accepted each of the recommendations.
“Council is committed to ensuring each of the recommendations is acted upon, so that we can fulfill our duties as Councillors and represent our entire community to the highest standards possible," he said.
“In fact, many of the recommendations have already been implemented in the first year of the new council.
“I am pleased to see the report acknowledges that positive progress has been made in improving overall performance over the past 12 months, since the 2024 election.
“On behalf of Horsham Rural City Council, I would like to acknowledge the invaluable guidance and support of the Victorian Government-appointed Monitor, Steven Kingshott, and thank him for his contribution to HRCC.”
The Monitor’s report can be located at this link: https://www.localgovernment.vic.gov.au/council-governance/independent-reports#Municipal%20monitors.
Councillor turnover
Mr Kingshott worked with the elected 2020-2024 councillor group, Robyn Gulline (mayor for four terms), Penny Flynn (deputy mayor 2022/2023), David Bowe, Claudia Haenel, Les Power, Bob Redden (Sept 2022 - August 2024), and Di Bell (resigned 2022).
He noted that this council was elected and served during the pandemic.
The Monitor addressed how the consistent councillor turnover in HRCC across four election terms posed a potential governance risk.
He described the relationship between some 2020-2024 councillors as dysfunctional, with complaints being made against each other, and some councillors choosing to abuse the complaints process to facilitate their own agenda.
He said, unfortunately, processes designed to promote good governance were being used in a way that was counterproductive, resulting in further deterioration of relationships and trust.
While not de-legitimising serious concerns versus other motivations, the time and additional work generated by the complaints process also created a significant distraction and lost opportunity for this council, impacting staff morale and the reputation of HRCC.
CEO resignation
The Monitor's report showed that the relationship between the mayor, Robyn Gulline, and chief executive Sunhil Bhalla provided relatively consistent leadership across the four-year term.
The mayor and the CEO worked closely together, developing a reputation for successfully obtaining grant funding and project development.
However, he noted that this long-term relationship at the senior level had detractors within the council and the community, with some viewing it as an environment that was not inclusive in its decision-making processes.
He said that the negative reporting in some print and social media about the CEO, Sunhil Bhalla, and council decisions was targeted and consistently critical of both.
"The CEO chose to resign and finish in September 2024 after a period of internal turmoil and public scrutiny," Mr Kingshott said.
The resignation followed a vote of no confidence by about 70 staff members after a meeting held at the works depot.
The Monitor stated that while he was aware of a vote of no confidence against the CEO, some staff members claimed they had not witnessed any bullying or harassment by the CEO.
However, they had witnessed racially motivated behaviour towards him.
Gallery members, attending council meetings, also advised the Monitor that they had witnessed racist comments, belittling, and sniggering at the then-CEO.
Administrative operational culture
Mr Kingshott listed several examples of operational culture within the HRCC administration where initial budgets for projects had not reflected the true cost.
These included the Lukin Park project and the Natimuk Social and Economic committee, where the projects did not proceed as originally costed.
On investigation, the Monitor said a HRCC senior officer told him that it was not unusual to move the money around on projects.
Mr Kingshott said he would have considered that there would be stronger protocols and processes in place that flagged and communicated both exchanges and expenditure variances back to the council.
New council
At the Statutory meeting on November 21, 2024, seven councillors were sworn in: Crs Ian Ross (mayor), Rebecca Sluggett, Dean O'Loughlin, Cam McDonald, Angela Munn, Brian Klowss, and Todd Wilson.
The report indicates that the new council has faced considerable challenges in the community, including the Mount Arapiles Draft Amendment, the City Oval upgrade and funding, renewable and mining projects, CEO recruitment, budget management, managing councillor conflict of interest, and leadership issues.
He acknowledged the valuable contribution of the interim chief executive, Craig Niemann, who was appointed after Mr Bhalla's resignation and until the current CEO, Gail Gatt, was appointed.