LOCAL GOVERNMENT ACT

1
LOCAL GOVERNMENT ACT
SEMINAR
2
Seminar Program

• Parts of the Act 1-9
• Key matters only
• Questions
• Reference papers
• Evaluation

3
PART 1 INTRODUCTORY MATTERS
4
Sustainability

• s.1.3 Content and intent
• (3) In carrying out its functions a local
  government is to use its best endeavours to meet
  the needs of the current and future generations
  through an integration of environmental
  protection, social advancement and economic
  prosperity.
• Operates from 31 March 2005

5
Special Majority

• Amendments about special majority
• All references to 75 majority are removed,
  except for section 2.11 (method of changing
  mayor)
• Replaced by absolute majority
• Operates from 7 May 2005

6
Questions

• ?

7
PART 2 CONSTITUTION OF LOCAL GOVERNMENT
8
Electing Mayor or President

• s.2.11, 2.12, 2.12A
• Referendum to change to a system of electing the
  Mayor or President by council
• Advisory Board to prepare ballot paper question
  and summary of case for and against
• over/

9
Electing Mayor or President

• s.2.11, 2.12, 2.12A (cont.)
• Electoral Commissioner to conduct the poll
• Poll can only be held once every four years
• Special majority decision required
• Regulations specify requirements for declaration
  and giving notice of poll result (Regs 91 92)
• Operates from 21 January 2005

10
Disqualification of council members

• s.2.25 Disqualification - failure to attend
  meetings
• Must give reasons for refusing to grant leave of
  absence
• Reasons to be included in minutes of meeting
• Operates from 7 May 2005

11
Appointment of Commissioners

• s.2.37 2.37A Powers to declare offices vacant
• Allows Commissioner to be appointed for two years
  (rather than one)
• Operates from 31 March 2005

12
Appointment of Commissioners

• Schedule 2.4 Provisions about Commissioners
• Allows a person who is a council member to also
  be a Commissioner of another local government
• Operates from 31 March 2005

13
Local Government Advisory Board

• Schedule 2.1 District boundaries
• Reasons for boundary change to be included in
  proposals sent to Board
• Board may reject proposal where electors no
  longer support proposal
• Electoral Commissioner to conduct boundary polls
• Operates from 31 March 2005

14
Local Government Advisory Board

• Schedule 2.5 Provisions about Board
• A board member cannot be an elector of a district
  that the board is inquiring into
• Operates from 31 March 2005

15
Ward Representation Changes

• Schedule 2.2 Wards Representation
• Council rejection of minor submissions from
  electors to be by absolute majority
• Council may reject a submission no longer
  supported by the electors making the submission,
  or substantially similar to previous submission
  within last two years

16
Ward Representation Changes

• Schedule 2.2 Wards Representation (cont)
• Council without wards may carry out review of
  representation matters within eight year period
• Board may request a local government to carry out
  a review of its representation at any time
• Operates from 31 March 2005

17
Election of Mayors/Presidents/Deputies

• Schedule 2.3 Election of Mayors/Presidents/
• Deputies by councils
• Sufficient time for nominations prior to meeting
• Detailed procedures for voting, declaration of
  result and giving notice set in Regulations

18
Election of Mayors/Presidents/Deputies

• Schedule 2.3 Election of Mayors/Presidents/
• Deputies by councils (cont.)
• Invalidity complaints to court of disputed
  returns
• Complaints to be made within 28 days of notice
• Operates from 7 May 2005

19
Election of Mayors/Presidents/Deputies

• Constitution Regulations Conducting elections
  (Regs 11A 11G)
• CEO to prepare ballot papers (authenticated)
• Names in alphabetical order or other fair method
• Councillor to mark ballot paper (in secret)
• Provisions for spoilt papers and councillors who
  need assistance

20
Election of Mayors/Presidents/Deputies

• Constitution Regulations Conducting elections
  (cont.)
• Declaration and notice of result (Form 19)
• Records of election to be retained for four years
• Operates from 7 May 2005

21
Questions

• ?

22
PART 3 FUNCTIONS OF LOCAL GOVERNMENTS
23
Local Laws

• s.3.12 Procedure for making local laws
• Removal of requirement for Presiding Member to
  read aloud a summary
• Regulations require written notice of purpose and
  effect to be in agenda and minutes
• (Reg 3) over/

24
Local Laws

• s.3.12 Procedure for making local laws (cont.)
• Final public notice to be local rather than
  Statewide
• Clarification that making a local law includes
  an amendment or a repeal.
• Operates from 7 May 2005

25
Local Laws

• s.3.16 Periodic review of local laws
• Six weeks advertising instead of 12 weeks
• Removes requirement for a Statewide public notice
  of outcome of review
• Operates from 7 May 2005

26
Abandoned Vehicles

• s.3.40A Abandoned vehicle wreck may be taken
• New power to impound and dispose of vehicles
  within 14 day period
• Vehicle declared abandoned after 7 days where
  owner not found
• Vehicle may be sold or disposed of after a
  further
• 7 days over/

27
Abandoned Vehicles

• s.3.40A Abandoned vehicle wreck may be taken
  (cont.)
• Definition of abandoned vehicle
• Not operational
• Owner not identified
• Regulation - value of less than 200 (Reg.29A)
• Operates from 7 May 2005

28
Closing Thoroughfares to Vehicles

• s.3.50 Closing certain thoroughfares to
  vehicles
• Removal of current 4 year limit on temporary road
  closures
• Closures may be indefinite
• Operates from 7 May 2005

29
Disposing of Property

• s.3.58 Disposing of property
• Statewide public notice changed to local public
  notice
• Operates from 7 May 2005

30
Regional Local Governments

• s.3.66 Application of Acts to a regional local
  government
• Person cannot be both a council member and
  employee of a regional local government
• Operates from 7 May 2005

31
Powers to Issue Notices

• Schedule 3.1 Powers to issue notices to
  owners or occupiers (s.3.25)
• Four new powers
• Removal of bees that are dangerous or a serious
  nuisance
• Modify or repair street fence that is dilapidated
  or dangerous over/

32
Powers to Issue Notices

• Schedule 3.1 Powers to issue notices to owners
  or occupiers (s.3.25) (cont.)
• Preventing nuisance lighting
• Making private thoroughfares safe
• Operates from 7 May 2005

33
Functions and General Regulations

• Local Government (Functions and General)
  Amendment Regulations 2004
• Operates from 31 March 2005

34
Functions and General Regulations

• Reg 7 Minimum value of major land transaction
• Increased from 500,000 to 1,000,000
• Reg 9 Minimum expenditure involved in
  major trading undertaking
• Increased from 250,000 to 500,000

35
Functions and General Regulations

• Reg 11 Tenders to be invited for certain
  contracts
• New exemption for fuel and oil
• Reg 16 Receiving and opening tenders
• Removal of unintended provision for public to be
  present during examination or assessment of
  tenders

36
Functions and General Regulations

• Reg 30 Dispositions of property to which 3.58 of
  the Act does not apply
• New exemption added where 3.59 details of
  disposition cover 3.58 matters and have been
  through a public advertising process in business
  plan under 3.59

37
Questions

• ?

38
PART 4 ELECTIONS AND OTHER POLLS
39
Elections

• s.4.1A 4.1B Conflict with Commonwealth or State
  election or referendum
• New section preventing local government elections
  being held on same day as State or Federal
  elections for same area
• Power for Governor to set another day for local
  government elections
• Operates from 21 January 2005

40
Elections

• s.4.17 Cases in which vacant offices can
  remain unfilled
• Allows local governments without wards to operate
  with only 80 of positions filled
• Approval of Electoral Commissioner required
• Operates from 21 January 2005

41
Elections

• s.4.20 CEO to be returning officer unless
  other arrangements are made
• Allows local government to appoint a person other
  than the CEO for all future elections
• Operates from 21 January 2005

42
Elections

• s.4.32 How to claim eligibility to enrol under
  s.4.30
• New regulation making power to set minimum amount
  of annual rent to be paid by occupier for
  eligibility on owners and occupiers roll
• Not to apply for the May 2005 elections
• Discussions with WALGA continuing

43
Elections

• s.4.37 A new roll for each election
• Allows same roll to be used within 100 days of
  previous election (changed from 50 days)
• Operates from 21 January 2005

44
Elections

• s.4.48 Eligibility to be a candidate
• Candidate prevented from changing his or her type
  of eligibility after close of enrolments
• Operates from 21 January 2005

45
Elections

• s.4.49 How to make an effective nomination
• Nomination day changed from 30th to 37th day
  before election day
• Operates from 21 January 2005

46
Elections

• s.4.51 Rejection of nomination
• Power for returning officer to reject nomination
  where elector is a nominee of a body corporate
• Operates from 21 January 2005

47
Elections Regulations

• Local Government (Elections) Regulations
• Operates from 21 January 2005 18 March 2005

48
Elections Regulations

• Reg.20 Electors details on the roll
• Includes postal address for residents roll where
  it is different to residential address
• Reg.22A Certification of corrections to roll
• Requires certification of corrections to
  residents roll by Electoral Commissioner and
  owners and occupiers roll by CEO

49
Elections Regulations

• Regs. 26, 27 28 Nomination Deposits
• Allows nomination deposits to be credited to any
  fund of the local government rather than trust
  fund
• Allows Electoral Commissioner (EC) to credit
  deposits to EC account and refund deposits
• Specifies the 38th day for return of nomination
  deposits where a candidate withdraws

50
Elections Regulations

• Regs. 91 92 Referendum under s.2.12A
• Provision for Electoral Commission to recover
  costs of poll from local government (by
  agreement)
• Returning Officer to declare and give notice of
  the result of the poll

51
Elections Regulations

• Various amendments to forms
• Improvements to certificates for postal voting
• Provision for contact telephone numbers to be
  included
• References to Act provisions in notes updated
• New Form 20 Report to Minister

52
Questions

• ?

53
PART 5 ADMINISTRATION
54
Plan for the Future

• s.5.56 Planning for the future
• Principal Activity Planning deleted
• Budget under s.6.2 to have regard to plan for the
  future
• Operates from 31 March 2005
• over/

55
Plan for the Future

• s.5.56 Planning for the future (cont.)
• Reg 19C prescribes requirements for plans
• Minimum period of two financial years (with
  review every two years)
• Set out broad objectives
• Absolute majority decision to adopt plan
• over/

56
Plan for the Future

• s.5.56 Planning for the future (cont.)
• Electors to be consulted during development of
  plan (good practice for early involvement)
• Plan to include description of how electors have
  been involved
• These Regulations not mandatory for budget
  setting process for 2005/06 (applies to later
  budgets)
• Plan for the future for 2005/06 budget is not
  prescribed (can continue Principal Activity Plan
  or other) over/

57
Plan for the Future

• s.5.56 Planning for the future (cont.)
• Reg 19D prescribes method of giving notice of
  plan
• Local public notice advising of adoption of plan
  and where plan may be inspected

58
Voting at Meetings

• s.5.21 Voting
• Presiding Member must use casting vote
• Offence for not voting when present at meeting
• Maximum 5,000 penalty for not using casting vote
  or voting at meeting
• Operates from 7 May 2005

59
Appointment of Employees

• s.5.36 5.37 Local government employees
• Absolute majority decision by council for CEO
  employment
• Vacant position of CEO or senior employees to be
  advertised in accordance with Regulations
• Advertisement in newspaper circulating throughout
  the State
• Advertisement details (new Regulation 18A)
• Operates from 7 May 2005

60
Appointment of Employees

• s.5.36 5.37 Local government employees
• Regulation 18A prescribes details for
  advertisement
• Details of remuneration, benefits and job
  duration
• Where application is to be submitted contact
  info
• Date and closing time for applications
• Any other information considered relevant
• Operates from 7 May 2005

61
Appointment of Employees

• s.5.39 Contracts for CEOs and senior employees
• Allows an employee to act in position for maximum
  period of one year without separate written
  contract
• Outside person may be employed as a senior
  employee for up to three months without separate
  written contract
• Operates from 7 May 2005
• over/

62
Appointment of Employees

• s.5.39 Contracts for CEOs and senior employees
  (cont.)
• Salaries and Allowances Tribunal to carry out
  annual inquiry report on recommended levels of
  remuneration for CEOs (report published in
  Government Gazette)
• Councils to consider recommended remuneration
  levels for CEOs set by Tribunal when making
  appointments
• Operates from 31 March 2005 (does not apply until
  Tribunal prepares its first report, Department to
  advise) over/

63
Appointment of Employees

• s.5.39 Contracts for CEOs and senior employees
  (cont.)
• Further Regulations
• Maximum of 1 years remuneration where contract
  terminated (Reg.18B)
• Council to approve process for the selection and
  appointment of CEO (Reg.18C)
• Council to carry out review of performance of CEO
  and to adopt outcome of the review (Reg.18D)
  over/

64
Appointment of Employees

• s.5.39 Contracts for CEOs and senior employees
  (cont.)
• Offence for giving false academic information
  (Reg.18E) in CEO application for employment
  (maximum penalty 5,000)
• Remuneration and benefits paid to CEO on
  appointment to be the same as advertised
  (Reg.18F)
• Operates from 7 May 2005

65
Annual Report

• s.5.54 Acceptance of Annual Reports
• Council adoption of annual report to require an
  absolute majority decision (cannot be delegated)
• Operates from 7 May 2005

66
Financial Interests

• s.5.62 Closely associated persons
• Regulations prescribe additional classes of
  persons who must declare an interest
• a council member who is the legal or financial
  client or adviser of another council member
  within the last 12 months (Reg.20)
  over/

67
Financial Interests

• s.5.62 Closely associated persons (cont.)
• Regulations to calculate the method for valuing
  shares that are a financial interest (Reg.20)
• Shares to be based on the value at last day of
  closing of stock exchange for a financial year
• Shall be nominal value if not listed on stock
  exchange
• Operates from 7 May 2005

68
Inspection of Information

• s.5.95 Limits on rights to inspect local
  government information
• Contact details for a person that are silent on
  the electoral roll are also to be removed on
  other registers kept by the local government
• Operates from 7 May 2005 over/

69
Inspection of Information

• s.5.95 Limits on rights to inspect local
  government information (cont.)
• Regulations - matters to be kept confidential
  (Reg.29A)
• Private information to be removed from employment
  contracts may only include name, address, contact
  details and financial institution information
• Proposed sale price and purchase price of
  property (until sale or purchase takes place)
• Operates from 7 May 2005

70
Administration Regulations

• Local Government (Administration) Regulations
• Operates from 31 March 2005

71
Administration Regulations

• Reg 10 Revoking or changing decisions
• Clarifies that 1/3 support is required for giving
  written notice of motion prior to a meeting

72
Administration Regulations

• New Regulations to allow meetings by means of
  instantaneous communication
• Reg 14A allows meetings at different local
  government locations
• in a townsite or residential area
• 150km road distance between such places
  over/

73
Administration Regulations

• New Regulations to allow meetings by means of
  instantaneous communication (cont.)
• only up to half of meetings each financial year
  to be by this method
• minimum of audio communication
• requires absolute majority decision

74
Administration Regulations

• New Regulations to allow meetings by means of
  instantaneous communication (cont.)
• Reg 14B allows meetings in cases of natural
  disasters (fire, flood, earthquake, storm, etc)
• Allows a council member to be at the meeting at
  any place (including private place)
• Minimum of audio communication
• Member authorised by mayor, president or council

75
Administration Regulations

• Reg 19A Restrictions on gratuity payments
  to employees
• 5,000 maximum
• 1 years annual remuneration in case of voluntary
  severance
• Operates from 1 January 2010

76
Administration Regulations

• Reg 19B Annual Report to contain information on
  payment to employees
• Details of numbers of employees on annual
  salaries exceeding 100,000
• Grouped in 10,000 intervals
• Will be required for this years annual report

77
Administration Regulations

• Meeting payments and allowances for council
  members
• Approx 20 increase for all amounts
• Applies to Regs 30, 31, 33, 34 34A
• No increase to 60,000 maximum for mayor or
  president (0.002 of operating revenue still
  applies)
• Childcare hourly rate of 10 increased to 20
  (Reg.31)

78
Administration Regulations

• Meeting payments and allowances for council
  members (Reg.30)
• Minimum meeting fee from 50 to 60
• Maximum meeting fee from 120 to 140
• Minimum committee meeting fee from 25 to 30
• Maximum committee meeting fee from 60 to 70

79
Administration Regulations

• Meeting payments and allowances for council
  members (Reg.30)
• Total meeting fees payable from 6,000 to 7,000
• Minimum meeting fee for mayor/president from 100
  to 120
• Maximum meeting fee for a mayor/president from
  240 to 280
• Total meeting fees payable for mayor/president
  from 12,000 to 14,000

80
Administration Regulations

• Meeting payments and allowances for council
  members (Reg.33)
• Minimum annual allowance for mayor/president from
  500 to 600
• Maximum annual allowance for mayor/president from
  10,000 to 12,000 (or 0.002 of operating
  revenue, whichever is the greater with 60,000
  ceiling)

81
Administration Regulations

• Meeting payments and allowances for council
  members (Reg.34)
• Minimum annual attendance fee from 2,000 to
  2,400
• Maximum annual attendance fee from 6,000 to
  7,000
• Minimum annual attendance fee for mayor/president
  from 5,000 to 6,000
• Maximum annual attendance fee for mayor/president
  from 12,000 to 14,000

82
Administration Regulations

• Meeting payments and allowances for council
  members (Reg.34A)
• Maximum total allowance for telecommunications
  from 2,000 to 2,400
• over/

83
Administration Regulations

• Meeting payments and allowances for council
  members (cont.)
• All increases are discretionary for councils for
  remainder of this financial year
• Increases mandatory for next financial year

84
Administration Regulations

• Meeting payments and allowances for council
  members (cont.)
• New Reg 34AA Allowance for information technology
• Maximum of 1,000 per annum

85
Administration Regulations

• Meeting payments and allowances for council
  members (cont.)
• New Reg 34AB Allowance for travelling and
  accommodation
• Maximum amount to be the same as applies under
  State Public Service Award
• Includes allowances for meals and accommodation
• Department to supply details to local governments
  (information available from the Industrial
  Relations Commission website)

86
Administration Regulations

• Reg 34B Codes of conduct (token gifts)
• New exemption for grants for educational or
  professional training from Government or
  non-profit organisations

87
Questions

• ?

88
PART 6 FINANCIAL MANAGEMENT
89
Financial Management

• s.6.2 Local government to prepare annual budget
• Budget may be adopted in June
• Operates from 31 March 2005

90
Financial Management

• s.6.9 Trust fund
• Removes requirement to move monies held in a
  trust fund for more than 10 years to the
  municipal fund
• Operates from 31 March 2005

91
Financial Management

• s.6.14 Power to invest
• Removes power of the Minister and Treasurer to
  approve investments that do not comply with the
  Trustees Act 1962
• Operates from 31 March 2005

92
Financial Management

• s.6.21 Restrictions on borrowing
• Removes requirement for Treasurers approval for
  local government borrowings
• Operates from 1 July 2005

93
Financial Management

• s.6.51 Accrual of interest on overdue rates
  or service charges
• Provides for penalty interest to also apply to
  costs of proceedings for the recovery of rates
• Operates from 31 March 2005

94
Financial Management

• s.6.62 Application of money paid for rates and
  service charges
• Provides that rates monies paid by the owner also
  clear outstanding costs of court proceedings for
  the recovery of rates
• Operates from 31 March 2005

95
Financial Management

• s.6.74 Power to have land revested in the Crown
  if rates in arrears for three years
• Clarifies that land revested in the Crown because
  of non-payment of rates can be registered with
  the Registrar of Titles
• Operates from 31 March 2005

96
Financial Management Regulations

• Local Government (Financial Management)
  Regulations
• Operates from 1 July 2005

97
Financial Management Regulations

• Reg.8 Bank accounts
• Removal of requirement for separate bank accounts
  for major land transactions and major trading
  undertakings
• Reg.11 Payment of accounts
• Removal of restriction for paying for goods until
  goods have been delivered in satisfactory
  condition (replaced by requirement to develop
  procedures for properly incurring debts)

98
Financial Management Regulations

• Reg.13 Lists of accounts
• Removal of requirement for statement of total
  outstanding accounts not yet paid to be presented
  to council
• Reg.27 Budget notes
• Deletes references to Principal Activity Plans

99
Financial Management Regulations

• Reg.33A Review of budget
• Requires at least one budget review each year
  between
• 1 January and 31 March
• Adoption of review requires absolute majority
  decision
• Copy of review to be forwarded to Department
  within 30 days
• Reg.5 amended to add budget review as new
  financial management duty for CEO

100
Financial Management Regulations

• Reg.34 Financial activity statement report
• Requires preparation of monthly financial reports
• (includes annual budget estimates, estimates to
  end of month, actual expenditure and revenue,
  material variances and net current assets)
• May be shown according to nature and type
  classification, program or business unit
• Regulation 35 (quarterly or triannual reports)
  repealed

101
Financial Management Regulations

• Reg.36 Form of annual financial report
• Includes new requirement to include the rate
  setting statement referred to in Regulation
  22(1)(d) in the annual financial report

102
Financial Management Regulations

• Reg.50 Financial information by ratio
• New ratios are required, including gross debt to
  revenue, untied cash to trade creditors and
  gross debt to economically realisable assets
• New definitions are included for these terms

103
Financial Management Regulations

• Reg.56 Contents of rate notice
• Removal of requirement to include information
  about a local governments debt levels
• Reg.66 71 Penalty interest on overdue rates
• Amended to reflect that interest can apply to
  cost of proceedings under section 6.51
• Various changes in terminology changing income
  to revenue

104
Questions

• ?

105
PART 7 AUDIT
106
Audit Committees

• s.7.1A Audit Committee
• Requirement to establish an audit committee
• Committee to be of three or more persons,
  including elected members and other persons
• Employees and CEO not to be member of Committee
  (can be observers) over/

107
Audit Committees

• s.7.1A Audit Committee (cont.)
• Absolute majority decision to appoint committee
• Operates from 7 May 2005

108
Audit Committees

• s.7.1B Delegation of some powers and duties to
  audit committees
• Council may delegate only powers and duties under
  Part 7 to audit committee (by absolute majority)
• Decisions of audit committee to be by simple
  majority (section 7.1C)
• Operates from 7 May 2005

109
Audit Committees

• s.7.3 Appointment of auditors
• Requires recommendation from audit committee for
  appointment of auditor by the council
• Operates from 7 May 2005

110
Audit Committees

• s.7.9 Audit to be conducted
• Requires any matters identified by an auditor to
  be detailed in the auditors report
• New power for the Minister to refer a copy of the
  auditors report to the CEO for action under
  section 7.12A
• Operates from 7 May 2005

111
Audit Committees

• s.7.12A Duties of local government with
  respect to audits
• Local government must
• Assist its auditor and ensure that audits are
  conducted successfully and in a timely way
• Meet with the auditor at least once every year
  (can be by electronic communication)
  over/

112
Audit Committees

• s.7.12A Duties of local government with
  respect to audits (cont.)
• Examine auditors report and ensure action is
  taken where necessary
• Prepare a report on any necessary action and
  forward a copy to the Minister
• Operates from 7 May 2005 over/

113
Audit Committees

• s.7.12A Duties of local government with respect
  to audits (cont.)
• Regulations prevent particular audit delegations
  to CEOs (includes s.7.12A(2), (3)(a), (4))
  (See Reg.18G)
• These cover matters relating to the Council or
  committee meeting with auditor, determining
  matters in report requiring action and adopting
  report on actions

114
Audit Committees

• s.7.13 Regulations as to audits
• Reg.16 Functions of audit committee
• Must provide guidance assistance on matters
  under Part 7
• Must develop a process for selection and
  appointment of auditor over/

115
Audit Committees

• s.7.13 Regulations as to audits (cont.)
• May assist in relation to
• Matters to be audited
• Scope of audit
• Functions under Part 6
• Carrying out of any other functions relating to
  other audits (internal)
• Other financial matters

116
Questions

• ?

117
PART 9 MISCELLANEOUS PROVISIONS
118
Miscellaneous

• s.9.11 Person found committing offence to give
  name on demand
• New power to demand date of birth when requesting
  name and address from a person when enforcing Act
• Operates from 7 May 2005

119
Other Matters

• Amendments about WALGA
• s.9.58 WALGA constituted
• References to WAMA, LGA, CSCA and CUCA
  deleted and replaced by WALGA
• Local Government Act and 13 other Acts amended
• Operates from 31 March 2005

120
Questions

• ?

121
LOCAL GOVERNMENT ACT
SEMINAR