Introduction · Web viewJeff Tate Consulting Pty Ltd was engaged by the Local Government Association of South Australia (LGA) to advise on topics relating to potential guidelines and

Guideline and Action Topics for Development and Assessment, and Implementation of Local Government Boundary Changes

June 2016

Discussion Paper

Jeff Tate Consulting Pty Ltd

PO Box 825, McLaren Vale SA 5171

Mobile 0414 962 162

[email protected]

This discussion paper has been prepared for the LGA by Jeff Tate Consulting Pty Ltd.

LGA of SA ECM639290 Discussion Paper Page 1 of 18

Table of Contents

Introduction.............................................................................................................................3

Background.............................................................................................................................3

Purpose of Guidelines............................................................................................................5

Potential Guideline and Action Topics.................................................................................5

Conclusion..............................................................................................................................9

References.............................................................................................................................10


IntroductionJeff Tate Consulting Pty Ltd was engaged by the Local Government Association of South Australia (LGA) to advise on topics relating to potential guidelines and actions to supplement the new boundary adjustment framework proposed for the Local Government Act 1999 (the Act).

The project was undertaken by Jeff Tate of Jeff Tate Consulting Pty Ltd.

The methodology involved:

review of the guidelines that had been adopted under the former Boundary Adjustment Facilitation Panel;

review of material developed by the NSW government relating to the recently implemented Council mergers in that state;

discussions with relevant staff of the LGA and the Office of Local Government of the South Australian government; and

submission of a draft report and, following feedback, a final report.

Background The project was commissioned in the context of changes to the Act proposed by the LGA following the discontinuation of the Boundary Adjustment Facilitation Panel as part of a review of South Australian Government Boards and Committees. The changes being proposed are based on a potential model identified in a previous Discussion Paper by Jeff Tate Consulting “Discussion Paper: Local Government Boundary Adjustment Reform” dated July 2015 (Discussion Paper).

The model in the Discussion Paper incorporated:1

A Commission/er as the preferred replacement for the Boundary Adjustment Facilitation Panel to maintain independence of the process and to support the Minister and proposal proponents...

An Advisory Body appointed by the Commission/er for major boundary change proposals on a case-by-case basis;

Changes to the Initiation Process to:

o change the focus of the initiation process from a proposal to that of a submission, including less onerous submission requirements and greater opportunity for the early consideration of alternative options;

o allow Ministerial submissions;

o allow submissions from single Councils;

1 Jeff Tate Consulting, Discussion Paper:Local Government Boundary Adjustment Reform for the Local Government Association of South Australia, 2015, p3


o replace the currently separate public and Council proposal initiation processes with a single application process for both public and Council-led initiations;

o allow public submissions to be made direct to the Minister;

o expand to allow all electors within an affected Council area to make a submission and delete the 20-person limit; and

o replace the requirement for a 5-person committee for public proposals with a number nominated at the discretion of the Commission/er following initial pre-assessment.

Changes to the Proposal Development and Assessment Process to:

o formalise and simplify a pre-assessment filtering process for Council, public and Ministerial submissions;

o streamline a single assessment pathway regardless of who initiates the process;

o introduce minor and major assessment pathways to streamline minor adjustments, particularly in relation to public consultation requirements;

o introduce an options development phase that includes a consultation process and collaborative optioneering;

o develop more detailed Assessment Guidelines and tools to support reform;

o allow tailored Assessment Guidelines for major proposals;

o integrate a stakeholder and community engagement plan into the Advisory Body’s Terms of Reference for major proposals; and

o allow polling to be subject to the discretion of the Commission/er;

Changes to the Implementation Process to require:

o expansion of guidelines and tools for implementation, apportionment and transitional arrangements;

o preparation of an implementation plan by the affected Councils with support from the Commissioner; and

o independent evaluation and reporting.


Purpose of GuidelinesGuidelines are intended to provide clarity and transparency about the steps involved in boundary change proposals, ensure a consistency of approach and assist the parties to efficiently and effectively provide information to assist the Commission/er in making a recommendation to the Minister.

Potential Guideline and Action TopicsA number of matters need to be considered in relation to potential or actual boundary changes. They can be aggregated under the following headings (in alphabetical order):

Assessment pathways

Assets and liabilities

Boundaries

By-laws

Contracts

Customer service and communication

Delegations

Development assessment panels

Elected representation

Finances

Governance

Implementation planning

Legal orders and proceedings

Options development

Plans, Policies, Procedures, Strategies

Pre-assessment process

Records

Recommendations

Services

Staff

Systems.

More detailed consideration of these matters is provided in the table below. They are identified as topics for guidelines to be developed by the Commission/er or actions to be undertaken by the Commission/er, investigator or Councils.

In the case of the formation of a new Council the matters for action are similar. However, additional 'start-up' actions are also required in relation to such matters as obtaining an Australian Business Number (ABN), opening bank accounts, making appointments (CEO, auditor, advisors, audit committee etc), branding, communication (including website and advice to external parties), telephone numbers and listing, business address, common seal, and customer payment facilities.

A comprehensive approach was taken in developing the list of potential guideline or action matters. In doing so it is acknowledged that some of them may more appropriately be covered by provisions in a revised Act or supporting Regulations.


Topic Development & Assessment Phase (including recommendation to Minister)

Implementation Phase

Assessment pathways

Determining pathway – minor and major proposals

Commission/er to publish guidelines on considerations to determine whether a proposal should be treated as minor or major.

Assets and liabilities

Land & buildings Commission/er to include ownership of land and buildings in any recommendation to the Minister for a boundary change. Generally, land and buildings would be owned by the Council in whose area they are located.

Investigator to advise the Commission/er.

Councils affected by a boundary change to alter land and building records, review insurances and advise the Land Titles Office of the change in ownership.

Other assets such as plant and equipment, cash, investments, interests in any ‘business activities’, debtors

Commission/er to include division of other assets in recommendation to the Minister for a boundary change.


Councils affected by a boundary change to alter asset records, review insurances and advise relevant parties of any change in ownership (eg motor vehicle registrations).

Councils affected by a boundary change to review involvement in business activities for potential impacts such as in relation to competitive neutrality.

Liabilities such as debt, overdraft, staff entitlements

Commission/er to include division of liabilities in recommendation to the Minister for a boundary change.


Councils affected by a boundary change to alter records and advise relevant parties of any change in responsibility for the liability (eg lending bodies).

Boundaries

Location of boundaries Commission/er to recommend to the Minister the location of external boundaries of affected Councils as a result of any boundary change.


Councils affected by a boundary change to update their records regarding external boundaries.




By-laws

Impact of boundary change Councils affected by a boundary change to review their by-laws to determine whether any changes are required.

Contracts

Impacts of potential or actual boundary change

Commission/er to determine whether any significant contracts would impact on a recommendation to the Minister regarding a potential boundary change.

Councils affected by a boundary change to review their contracts (including rights of assignment) to determine what actions are required as a result of the boundary change (including potential termination or variation).

Customer service and communication

Access to Council services Commission/er to consider the ability of communities to access Council services in reaching a decision on a recommendation to be made to the Minister regarding a potential boundary change.

Communication between Councils and communities

Commission/er to consider any relevant communication issues that may affect a recommendation to be made to the Minister regarding a potential boundary change.

Delegations

Impacts of boundary change (including transfer of staff)

Councils affected by a boundary change to review their delegations.




Development assessment panels

Development Assessment Panels

Councils affected by a boundary change to determine any changes that need to be made to membership of their Development Assessment Panels.

Elected representation

Election date Commission/er to recommend to the Minister if a change in election date is required for Councils affected by any proposal for boundary changes (eg if the change is, or likely to, take place soon after a general or supplementary election).

Finances

Financial sustainability of Councils affected by a proposed boundary change

Commission/er to ensure there is a 10 year financial sustainability assessment undertaken of the impacts of a potential boundary change on all affected Councils (applies to major changes only but Commission/er should have discretion to also apply for minor changes if the financial impacts are significant).

Commission/er to address the findings of the assessment in making a recommendation to the Minister.

Investigator to undertake the assessment.

Councils to provide any information sought by the investigators.

Councils affected by a boundary change to consider changes required to their long term financial plans.




Financial statements Commission/er to provide limited advice to Councils on which accounting standards apply leading up to and after boundary changes.

Auditor General may have a role in providing advice to the Commission/er.

Councils to comply with appropriate accounting standards in relation to their financial statements leading up to and after any boundary change.

Rating policy Commission/er to ensure an assessment is made of the differences in rating policies of the Councils involved in potential boundary changes and the impacts on individual and classes of ratepayers.




Councils to consider phasing of rate increases when they occur as a result of a boundary change and also whether changes should be made to rating policy.

Fees and charges Commission/er to ensure an assessment is made of any significant differences in fees and charges of the Councils involved in potential boundary changes and the impacts on individual and classes of ‘customers’.







Budget Councils affected by a boundary change to consider changes required to their current year’s budget and annual business plan.

Debt policy Councils affected by a boundary change to consider changes required to their debt policies.

Governance

Registers of interests Councils affected by a boundary change to ask Elected Members and staff whether they need to update the registers of interests.

Code of practice (access to meetings and documents) and complaints handling procedure under Code of Conduct

Councils affected by a boundary change to consider whether changes need to be made to the code of practice and the complaints handling procedure under the Code of Conduct.

Subsidiary bodies Councils affected by a boundary change to consider any impacts on single Council or regional subsidiaries.




Implementation planning

Planning for the implementation of any approved boundary changes

Commission/er to publish general advice on implementation planning (as a minimum this should include a checklist of actions required after a boundary change).

Commission/er to provide specific high level advice to Councils required to implement boundary changes.

Councils affected by a boundary change to develop and implement implementation plans.

Councils affected by a boundary change to complete an evaluation report designed by the Commission/er. Commission/er to make the evaluation report public.

Legal orders and proceedings

Either by or against a Council involved in a boundary change

Commission/er to consider whether there is material impact of legal orders and proceedings on Councils affected by a potential boundary change and, if considered reasonable, recommend any financial adjustment that should be made between the Councils at the time of a boundary change.

Councils affected by boundary a change to determine best course of action after receiving legal advice.

Options development

Options development phase to look at all options in relation to a proposal for a boundary change

Commission/er to publish guidelines on how development of options will occur.




Plans, Policies, Procedures, Strategies

Impacts Councils affected by a boundary change to determine whether any changes are required to plans, policies, procedures and strategies.

Pre-assessment process

Determining to discard applications that are frivolous, not in the best interest of the community, or otherwise inappropriate

Commission/er to publish guidelines on matters to be considered in determining whether an application for a boundary change should be discarded before full assessment.

Recommendations

Commissioner’s recommendations to Minister

Commission/er to publish assessment of any boundary change proposal against the Section 26 principles and other relevant matters included in this list.

Commission/er to publish recommendations made to the Minister in relation to any boundary change proposal.

Records

Impacts Councils affected by a boundary change to consider any changes that may be required to keeping of records.




Services

Service levels Commission/er to ensure an assessment is made of any significant differences in service levels provided by the Councils involved in potential boundary changes and the impacts on individual and classes of ‘customers’ of the potential boundary changes.



Councils affected by a boundary change to determine whether any changes are required to service levels.

Staff

Transfer after boundary change

Commission/er to publish guidelines on how transfers of staff necessitated by a boundary change would be facilitated.

Conditions of employment Commission/er to publish guidelines on how conditions of employment of staff transferred to another Council due to a boundary change should be managed.

Organisation structure Councils affected by a boundary change to determine whether any changes are required to their organisation structures.

Systems

Internal systems including Information and Communications Technology (ICT)

Councils affected by a boundary change to determine whether any changes are required to their internal systems (including ICT).



ConclusionThere are many factors to consider in determining whether proposed changes to Council boundaries should be approved. It will be important under the boundary adjustment framework proposed by the LGA that the Commission/er develops and publishes guidelines to provide clarity and transparency about the processes being followed and ensure there is a consistency of approach and considerations for all proposals. Guidelines will also assist the parties involved to provide information to assist the Commission/er in framing recommendations.

Implementation of approved boundary changes can be a complex process requiring advice based on experiences elsewhere. This Discussion Paper provides a list of topics for consideration in the development and assessment phase of the proposed boundary adjustment framework as well as the implementation phase. Some of the topics would require guidelines to be developed and published by the Commission/er and some require other actions by the Commission/er, investigator or affected Councils.


ReferencesJeff Tate Consulting for the Local Government Association of South Australia (2015), Discussion Paper: Local Government Boundary Adjustment Reform

New South Wales Department of Premier and Cabinet (2016), Managing change: Guidance for key staff

New South Wales Department of Premier and Cabinet (2016), Governing during change: Guidance for Administrators

South Australian Boundary Adjustment Facilitation Panel (2015), BAFP Guideline No: 1 – General Information

South Australian Boundary Adjustment Facilitation Panel (2015), BAFP Guideline No: 2 – Public Initiated Submissions

South Australian Boundary Adjustment Facilitation Panel (2015), BAFP Guideline – Requirements for Council initiated proposals for boundary adjustment

South Australian Boundary Adjustment Facilitation Panel (2015), BAFP Guideline No: 4 – Council response to a public initiated submission

South Australian Boundary Adjustment Facilitation Panel (2015), BAFP Declaration form – Public Initiated Submissions

South Australian Government (2014), Better Together: Principles of Engagement – a foundation for engagement in the South Australian government

South Australian Local Government Act (1999)


148 Frome StAdelaide SA 5000

GPO Box 2693Adelaide SA 5001

T (08) 8224 2000

F (08) 8232 6336

E [email protected]

www.lga.sa.gov.au

Documents

Introduction · Web viewJeff Tate Consulting Pty Ltd was engaged by the Local Government Association of South Australia (LGA) to advise on topics relating to potential guidelines and