Special Council Meeting - 12 Sept 2016 - Item7 ...€¦ · Council submission to the Act for the Future - Directions for a new Local Government Act Directions paper (the Paper). 2

Special Council Meeting Agenda 12/09/16

7 Review of the Local Government Act (Act for the Future) Directions for a New Local Government Act - Council Submission

Abstract The Minister for Local Government has initiated a review of the Local Government Act 1989. To support this review, the Minister has released a Directions Paper, which proposes far-reaching changes to the Act, including:

Extending mayoral terms to two years, adding or strengthening mayoral powers and providing the option of direct mayoral elections

Making council electoral structures, the number of councillors and wards more consistent

Requiring Council Plans to be driven by "deliberative community engagement" (for example, citizens' juries)

Removing the requirement for non-resident property owners to be voters Making voting rules consistent and providing the option for electronic voting for

Council elections in 2020 Giving stronger powers to the Minister for Local Government to deal with

individual councillors who compromise council governance Creating a single consistent land valuation system for levying rates

There are 157 proposed directions in the Directions Paper. The stated intention of the Minister’s review of the Local Government Act 1989 is ‘...not to further renovate the existing Act but rather to create an entirely new legislative structure’. The Directions Paper indicates the aim of the review is to produce contemporary legislation that modernises the relationship between the state and local government to better reflect essential roles and responsibilities and which provides clear guidance to those who work in the sector, and the community, about those roles and responsibilities. The state government is seeking feedback on the Directions Paper by 16 September 2016. A proposed Council submission has been prepared for consideration by Council.

Officers' recommendation That Council resolve: 1. To adopt the Council submission to the Review of the Local Government Act

Directions Paper as annexed to the minutes. 2. To forward a copy of the Council submission to the Municipal Association of

Victoria (MAV), the Victorian Local Governance Association (VLGA) and all local members of State parliament.

Document information

City of Boroondara Review of Local Government Act Page 1 of 220


Responsible manager: David Thompson

Governance ___________________________________________________________________ 1. Purpose

The purpose of this report is for councillors to consider the adoption of the Council submission to the Act for the Future - Directions for a new Local Government Act Directions paper (the Paper).

2. Policy implications and relevance to council plan

This report is consistent with the strategy within the Council Plan 2013 - 2017 focused on community well being and sense of place, and in particular with the long-term vision of community connectedness and the strategic objective of strengthening communities.

3. Background

The State Government is seeking the views of the sector and community on all aspects of the Local Government Act. The Minister has released a Directions paper. A copy of the Directions paper is at Attachment 1.

Feedback is sought on the 157 proposed directions in the Paper.

Project Lifecycle The project lifecycle for the review of the Local Government Act developed by Local Government Victoria is as follows:

2016 - Quarter 1-2 Consultation on reform ideas

2016 – Quarter 2-3 Directions paper release

2016 – Quarter 3 Consultation on Directions paper

2016 – Quarter 4 Directions paper submissions analysis Government consideration of reform options

2017 – Quarter 1-3 Drafting of exposure draft Bill

2017 – Quarter 4 Consultation on exposure draft Bill

2017 – Quarter 4 Government approval of Bill

2017 – Quarter 4 Introduction into Parliament

2018 New Act



Directions Paper The Paper identifies the challenges posed by existing legislative requirements. The Local Government Act Review sets out to provide a blue print for a contemporary Act.

The Minister has advised that the “aim of the review is to produce contemporary legislation that modernises the relationship between the state and local government to better reflect essential roles and responsibilities and which provides clear guidance to those who work in the sector, and the community, about those roles and responsibilities”.

4. Outline of key issues/options

There are 10 headline directions set out in the Paper. These are:

1. Mayors - Greater powers and longer terms 2. Consistent representative structures 3. Democratic voting rules supporting high participation 4. Council Plans driven by deliberative community engagement (for

example, citizens' juries) 5. Integrated Planning 6. Stronger Ministerial powers to resolve dysfunction 7. Transparency in CEO remuneration policy 8. Autonomous councils with independent decision making 9. Financially sustainable councils - innovative & collaborative 10. Consistency in rating - CIV to be the valuation methodology

Officers have prepared a response (see Attachment 2) to the 157 directions put forward by the Paper based upon officer understanding of Council's views and having regard to past resolution(s) of Council, the Council Plan 2013-2017, Annual Plan 2016-2017, adopted Council policies and strategies and the feedback Council provided to the Georgiou Report on the Local Government Electoral Review.

Submissions to the Paper close on Friday 16 September 2016.

5. Consultation/communication

The Executive Leadership Team and the Senior Leadership Team have been given the opportunity to contribute to the Council response to the Paper.

Further opportunities for involvement in the review of the Local Government Act are expected through the exposure draft Bill in 2017 and technical working groups as the new Act takes shape.

6. Financial and resource implications

Other than officer time in preparing a response to the Paper there are no direct financial implications to Council in responding to the Paper.

There are however a number of proposed reforms which have potential resource implications for Council, both positive and negative, the impact of which are not assessable in detail at this time.



7. Governance issues

Officers involved in the preparation of this report have no conflicts of interest.

It is envisaged that the proposed actions in this report present no actual or potential breaches of, or infringements upon, rights prescribed in Victorian Charter of Human Rights and Responsibilities.

8. Social and environmental issues

The Local Government Act is the key legislation authorising councils to act. It is important that the significant role of local government in the community is recognised and enabled by the legislation.

The feedback provided by Council to the Paper has the potential to achieve worthwhile results for the Boroondara community and the broader Victorian community.

Manager: David Thompson, Governance Report officers: David Thompson, Manager Governance

Andrew Dowling, Coordinator Governance


Act for the future

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______________________________________________________________________________________City of Boroondara Review of Local Government Act Page 5 of 220

kadams

Text Box

Attachment 1

© The State of Victoria Department of Environment, Land, Water and Planning 2016

This work is licensed under a Creative Commons Attribution 4.0 International licence. You are free to re-use the work under that licence, on the condition that you credit the State of Victoria as author. The licence does not apply to any images, photographs or branding, including the Victorian Coat of Arms, the Victorian Government logo and the Department of Environment, Land, Water and Planning logo. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/

ISBN 978-1-76047-145-3 (Print)

ISBN 978-1-76047-146-0 (pdf/online)

yourcouncilyourcommunity.vic.gov.au.

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Act for the future

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4 Act for the future -

Why a review and what are its

A view to the future 30

1.4 The review to date 321.5 Next steps 33

Councils' role (What councils do) 37 Councils' powers 382.2 Mayors leading councils 38

Mayoral role and powers 39 Mayoral allowances 41 Local Government

Mayoral Advisory Panel 41

2.3 Deputy mayor 422.4 Councillors 42

management 432.6 Council decision making 44

Giving primacy to open decision-making 45

2.9 Local Laws 47

3.1 Councillor numbers 50 Determining councillor numbers

Consistency in determining councillor numbers 51

3.2 Simpler and more consistent electoral structures 51

reviews 52

provisions 543.7 Modernising the council franchise 55

4.1 Community engagement on strategic

4.3 Consistency in complaint handling 65

5.1 Standards of conduct – councillor conduct framework 68

5.6 Chief Municipal Inspector enforcement 71

6.1 Structure of the sector 74

employment 776.5 Minister's power to set a cap on rates 77

and issue guidelines 78

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Act for the future -

7.2 Council and community plans 83

7.4 Improved budget guidance 857.5 Strengthened role for audit and risk

7.6 Improved accountability to the community 87

with state government policy and planning 88

8.6 Streamlined sale and exchange of land provisions 93

8.8 Entrepreneurial powers integrated into

9.1 Improved transparency of revenue and

9.3 A consistent method of valuing land for the purpose of raising general rates 98

maximum of 10% 989.5 Increased transparency in the levying

9.6 Streamlined service charges 1009.7 More transparent special charges 100

9.9 Greater autonomy in applying rebates and concessions 101

9.10 Clearer guidance on land ceasing to be rateable 102

9.11 Uniform process for reviewing and appealing rates and charges 102

9.12 Inclusion of Lands Act 1963 r

9.13 Inclusion of Electricity Industry Act 2000

Water Act 1989 112

City of Greater Geelong Act 1993 113 City of Melbourne Act 2001 113

113

Submissions 116

Community forums 116

Appendix 3: List of submissions 122

Appendix 4: Technical Working Group Members 126

Appendix 5: Dates and venues of community forums 128

Appendix 6: Commissioned research 129

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The Andrews Labor Government is determined to reform local government by

will be clear, consistent and responsive to the needs of Victorians and the councils that serve them.

democracy.

disconnected from the strategic governance role that is their core responsibility.

electoral and engagement processes that will provide the opportunity for more councils and their residents to prosecute a shared vision for their community.

community forums around the state and joining in online discussions on key policy issues. Sector experts

informed the reform proposals in this paper.

Local Government Act that will serve us well for the next 20 years and more. At the end of this paper, we explain

of Victorians.

Minister for Local Government


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The review of the

While the review provides the opportunity to address the Act's technical shortcomings and lack of coherence,

accessible Act.

Each reform proposed here can also be traced back to one or more of the principles that are guiding the work.

to the community and the state'. This second principle drives reforms to revitalise local democracy through

everything that councils do. Proposals in chapters 2 to 6 express this principle most strongly.

principle which will achieve an easy-to-read, accessible Act.

and how this content divides between chapters.


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An Act that is contemporary and meets future needs, is clear and comprehensive, and does not

Enhance democracy, diversity of

and responsiveness to the community and state

Improve corporate

arrangements

An Act that is principle-based

specify the more

non-statutory guidelines

Mayors leading councils

A modern council franchise

employment and performance

An integrated strategic

Autonomous decision-making balanced by a principle-based Act

Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10

in Table 1.

1 Enable a mayor to provide greater leadership to their council by having two-year democracy

2

2 Improve the

establishing a consistent formula for determining councillor numbers and having councils be unsubdivided

democracy1, 2

3 Simplify

state roll to determine eligible voters (except in the City democracy

1, 2


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4democracy

1, 2, 4

5councils to have an integrated strategic planning and

year council plan) a 10-year community plan, 10-year

democracy2, 3, 4

6 Strengthen the minister's powers to deal with individual councillors

failures at a council.

democracy2, 3

7

and to have an independent advisory mechanism to guide recruitment, contractual arrangements and

3

8 Improve the 3, 4

9 Establish a single method for

rates.

1, 3

10

council decision-making processes and replacing them

accountability.An easy-to-read, accessible Act

3, 4, 5


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Chapter 5 examines probity and standards of conduct

Chapter 6 strengthens ministerial oversight of councils

Chapter 7 creates an integrated planning framework for councils

of the future role of councils. It goes on to explore ways in which a stronger role may be created for mayors

the need for transparency and accountability

the economic, social and environmental sustainability of the municipality

2. Provide that the role of a council is to:

plan for and ensure the delivery of services, infrastructure and amenity for its municipality,

act as an advocate for its local community


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elect all mayors for two-year terms

supports a directly elected mayor

of mayors.

it a statutory advisory board to the minister under the Local Government Act.

mayor. That is:

where councillors elect their mayor, councillors elect the deputy mayor for the same two-year period

where the mayor is directly elected, a deputy mayor is jointly elected with the mayor on the same

9. Consider deputy mayoral allowances in light of the expanded role of deputy mayors.


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1

18. Include high-level principles about council decision-making processes: namely, that they be open and accountable.

the high-level principles in the Act.

it would prejudice enforcement of the law

it relates to trade secrets or would disadvantage a commercial undertaking.

the council's internal rules.

29. Include in the Act principles that local laws must meet2

these principles.

revoke a local law that is inconsistent with the principles.

2 These are as set out in the current schedule 8 which provides, among other things, that a local law must be within power, clear and


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32. Consult to determine the appropriate value of a penalty unit for local laws and whether the value should be indexed annually.

34. Extend the band (currently 5–12) for the number of councillors per council to 5–15 and provide the minister with the power to increase the number of councillors per council within

by the geographic scale of the local government area, loading councillor numbers by one, two or three for geographically vast local government areas.

3 or

directs the VEC to conduct a review on the basis of:

the need for a review

40. Consolidate all electoral provisions in a schedule to the Act, arranged according to the model provided by the


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4

or

5

developing council plans. It also outlines ways for councils to ensure that they are transparent and accountable in their governance and to ensure they have a rigorous approach to responding to community complaints.

the method to be determined by each council.

term to inform the four-year council plan and ten-year community plan.6

engagement process.

the community informs the engagement process

method.


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engagement process.

decision made or service provided by a council or its contractor or a delay or failure in 7,

dealing with customer complaints, and that the process contain an avenue for independent review that is clearly accessible to the public. Policy and statutory decisions of the council would not be subject to the complaints policy.

Chapter 5 addresses probity in council performance. A number of reforms have recently been made to reinforce

56. Incorporate the current councillor conduct framework largely unamended in the Act, including:

principal councillor conduct registrars

the role and powers of the minister and ministerial monitors and the Chief Municipal Inspector (CMI).

framework.

less serious breaches.

and the public interest that could result in a decision contrary to the public interest.8


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councillor conduct panel can impose for serious misconduct is six month suspension from

councillor for eight years.

Chapter 6 considers the powers of the minister in overseeing the system of local government in Victoria to

66. Include in the Act principles to apply to a proposal to create a new municipality, that:

each new municipality shall be viable and sustainable in its own right

comprehensive range of municipal services and to undertake necessary infrastructure investment and renewal.

altering external municipal boundaries.

appoint a municipal monitor in a manner and with the role and powers as currently set out in the Act

included in this general power

stand down a councillor as currently set out in the Act.

69. Empower the minister to recommend that a councillor be suspended by an order in council

the council or to a failure by the council to deliver good government and

these grounds and


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current form, including the provisions allowing appointment of administrators.

This will include, but not be limited to:

governance issues

in Chapter 8.

These reforms make the council plan the central strategic policy instrument of a council. A new rigour in

a long-term (10-year) community plan which is already one of the planning tools used by many councils. This

the four-year council plan as a council's central strategic planning instrument, and also


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in each plan.

described in Chapter 4

the council term.

annually to the community on the achievement of the council plan.

a community vision statement.

This plan will guide asset planning and inform the council plan.

and guidelines.

council budget must be struck.


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internal and external audit

the internal control environment.

infrastructure. These proposals also seek to modernise commercial approaches of councils in areas such as

align income and expenditure policies with strategic planning documents

provide value-for-money services and infrastructure which are accessible and responsive to the community's needs


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will go to tender for the provision of goods and services (including thresholds), the process

for money for the council.

Government contracts and the

accordance with that policy.

a council to report any non-compliance with its debt policy in its annual report.

management principles in the Act.


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greater autonomy in applying rebates and concessions. This chapter also proposes ways to streamline service

to review or appeal rates and charges decisions.

is for at least four years

outlines its pricing policy for services

outlines the amount it will raise through rates and charges

exempt:

land of the Crown, public body or public trustee that is unoccupied or used exclusively for a public

Veterans Act 2005. or

provided the lease, sublease, licence or sublicense is for a nominal amount (that is, the lease or rental amount is very small compared with the actual market lease or rental amount: commonly called a peppercorn rent).

Make land rateable that is:

used exclusively for mining purposes.

raising general rates. The City of Melbourne would be exempt from this provision.


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the community).

the provision of water supply and sewage services.

of special rates and charges, and about the criteria councils should use when declaring them

instalments on a date or dates determined by a council, provided all ratepayers have the

133. Allow a council to use rebates and concessions to support the achievement of their council

134. Clarify in the Act that, where a ratepayer successfully challenges the rateability of land, a refund of rates may only be backdated to the date of most recent ownership.

charges decision.

1963

Electricity Industry Act 2000 in the Act.

for an easy-to-read, accessible Act. This will be a principles-based Act which provides greater autonomy to

Act, and with the capacity for the minister to issue ongoing non-statutory sector guidance as

9 and a plan of the remaining provisions in the Act.

140. Include high-level statements to frame the structure, language and content of the remainder


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the councillor code of conduct framework). Include in this power capacity for other relevant

processes.



processes.

This guidance will be in the form of guidelines and formal and informal advice to the sector.

into the


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about whether these are included in the new Act or in the .

and include relevant provisions in the new Act.

as a separate Act with the City of Melbourne retaining

or outdated provisions.

independently of this

2015-16

2016

2017

Bill 2017

Act 2018


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A comprehensive review of the

the discussion paper released in September 2015.

contemporary Victorian community values and ideas in the vital decisions councils make. The Act’s renewal will

value in the interests of all Victorians.

The government's intent is that the review will lead to a new Act that is contemporary, clear and comprehensive

the new Act that will shape our local councils for decades to come.

and structures help strengthen democracy. Councillors and council administrators also need to adhere to strong probity standards that are appropriately oversighted by the responsible minister.

decision-making and community accountability, alongside measures to ensure consistency and fairness.

The third is that the Act is easy to read and understand. This will help candidates and elected councillors understand what is expected of them and the rules they must follow. This is also important for people knowing what their council does and how they do it and, importantly, how people can interact with their council.

diverse range of planning, health and community services, economic development, waste and environmental

make an area a community, not just a geographic place.


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improve the wellbeing and prosperity of Victorians. Strengthening this partnership to increase the delivery of

around $7 billion on service delivery and $2 billion on infrastructure annually, and managing over $70 billion in

more strategic investment.

councillors and council administrators and ensures they act in line with the highest standards of probity.

Act to ensure Victorian councils can face their many future challenges.

addressing future challenges.

community view that mayors lead their councils.

leadership powers and longer terms is one way of clarifying councils' authority and accountability.

'…the majority of Victorians (64%) do not know who their mayor is (higher in metropolitan Melbourne 73%).'

QDOS RESEARCH LOCAL GOVERNMENT ACT 1989 REVIEW COMMUNITY ATTITUDES RESEARCH (MAY 2016)


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the most important decisions councillors make. Many community submissions to the review expressed concern

'A new Act would establish a franchise that is consistent and clearly understandable. This would help support awareness by those with an entitlement and boost participation…Automatic enrolment would only occur for those with an entitlement on the state roll…'

VICTORIAN LOCAL GOVERNANCE ASSOCIATION

Having non-resident voters creates complexity which contributes to inaccuracies in council rolls, with duplicate enrolments and eligible voters being excluded. Many property owners do not exercise their right to vote which

scores for these surveys.

The current Act does not say how councils should handle complaints. This is a serious omission that must


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Councillor conduct provisions have recently been reformed but can now be reframed to be consistent with

and the

with by employment laws.

The following provides an overview of the proposed reforms.

The role of councils will be made clearer. They will be charged with planning for and ensuring the delivery of

Mayors will be put in charge of councils by giving them longer terms and by expanding their role to lead

back annually to the community on progress. Mayors will be expected to exercise visible, sustained and accountable leadership.

The state government, through the minister, will have the tools to intervene to ensure the integrity of the sector

decade.

outcomes, consistently prescribed and monitored. So long as councils demonstrate they comply with principles

largely in their hands.


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Easy to read, accessible act

The Act will set out the principles by which councils are to achieve outcomes, which will be clearly expressed

As explained above, the Victorian Government is seeking three overriding outcomes for a new Local Government Act:

contribute to council strategic visions and plans.

councils will drive reform across the state by being more autonomous and outcome-oriented and by

value for residents

the Act will be a living document that tells people clearly what councils do and how to get involved, and that provides a sound framework for the sector to understand roles and processes.

An Act that is contemporary and meets future needs, is clear and comprehensive,

responsiveness to the community and the state

an Act that is principle-based, providing greater autonomy to councils, balanced

non-statutory guidelines.


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Enable a mayor to provide greater leadership to their council by having

structures by establishing a consistent formula for determining councillor numbers and having

using the state roll to determine eligible voters (except in the City of Melbourne), introducing

determined by the minister.

4

Strengthen the minister's powers to deal with individual

Establish a single method for valuing land for rates, modernise

Extend autonomy to councils


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In September 2015, the Minister for Local Government, the Hon Natalie Hutchins MP, announced terms of reference for the review of the . She also released a discussion paper that described

terms of reference.

and debate.

Local Government Victoria also established a series of technical working groups comprising professional experts

Appendix 4 has a list of the technical working groups and their members.

Warrnambool, Horsham, the Melbourne central business district, Sunshine and Maryborough. Appendix 5 has

To complement the submission process, the government commissioned expert background papers about

paper. Appendix 6 has details of the background papers, which are available on the website.


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2015-16

2016

2017

Bill 2017

Act 2018

to taking it to the Parliament in late 2017.

the review.


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Part A: Revitalising Local Democracy

Strengthen the term, power and leadership authority vested in the

structures

local democracy

community engagement which shapes council plans.


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ISSUES

overarching principles (for example, transparency or economic sustainability) that the council must take into account when making decisions.

the exercise of council powers. An example of how this issue could be addressed is how the South Australian Local Government Act 1999 addresses it: by including principles councils must 'uphold and promote' in the

their powers.


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and exercising their powers:



ISSUESThe new Act will contain a high-level statement that clearly sets out what councils are intended to do. In the

It will also help the sector advocate for the important work that councils do throughout the state.

2. Provide that the role of a council is to:

plan for and ensure the delivery of services, infrastructure and amenity for its municipality, informed by



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ISSUES

under the Act.

The role of mayors is not properly understood by the community. Many councillors argue that mayors are

In looking to strengthen the leadership of mayors, it is important to consider how they are elected and for how long, and their role and powers.

Victoria are elected by the councillors. Mayors may be elected for one or two-year terms. The overwhelming majority are currently elected for a one-year term.

councils and in some Western Australian, South Australian and Northern Territory councils. Mayors are directly

years, while councillor-elected mayors usually serve shorter terms.

ISSUESSome submissions to the review argued that mayors should be directly elected by residents. In Australia,

elected to represent their electorate by voters and then elected to leadership by members of their own party.

councillors who then choose one of their number to be mayor.

Unlike at other levels of government, mayors do not lead a ministry comprised of ministers who exercise

the mayor does not have the support of other councillors.

'What’s the point of having the mayor change every year when the councillors don’t change every year?'

QDOS RESEARCH FOCUS GROUP PARTICIPANT


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A mayor directly elected by voters may consider they have a mandate to implement certain policies, and this is certainly the view of people who voted for them. However, the mayor may not have the support of councillors to implement those policies. Conversely, a councillor-elected mayor may have the support of other councillors but

if councillors do deals about policy with other councillors to win votes in the mayoral contest.

secure the mayoral role.

point to the danger of having a mayor who does not have the skills for the role in the role for the whole term.

once a community has the right to directly elect a mayor, they expect to be able to elect his or her successor

elect all mayors for two-year terms

a directly elected mayor

This is that the mayor and deputy mayor are jointly elected by voters, and councillors are elected at-large to

of the council, both inside the council and externally in the community.


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ISSUES

'In successful councils, the mayor and the CEO support each other's leadership and do so visibly so that staff at all levels and the community can have trust in their good working relationship and mutual respect for the organisation that supports them and the council as a whole. When leadership fractures, staff lose confidence and focus on the jobs that they are there to perform and the services they are meant to deliver.'

COMMISSION OF INQUIRY INTO GREATER GEELONG CITY COUNCIL

The core responsibility of elected councils is to make decisions on behalf of the community. Currently, the role

for the mayor to play a greater leadership role in decision-making, explicitly leading development of the council

making processes. The allows the council to delegate certain powers to the lord

to external bodies. The was amended in 2012 to allow the mayor to exercise

While the added a responsibility for mayors to

their role. This is best achieved through the oversight of the mayor.

'There was a tendency to think that the CEO was functionally in charge of the council and that the mayor was more of a figurehead.'

QDOS RESEARCH, 2016, LOCAL GOVERNMENT ACT REVIEW COMMUNITY ATTITUDES RESEARCH


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ISSUES

expanded role.

Excluding the Lord Mayor of Melbourne and the Mayor of Greater Geelong, the maximum annual allowance for a mayor is $57,812, $74,655 or $92,333, depending on the size of their council. These amounts may if they

ISSUE

statutory advisory board to the minister that derives its authority from the Local Government Act.

individual capacity.

advisory board to the minister under the Local Government Act.


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The current Act does not provide for deputy mayors in Victorian councils and in some ways obstructs councils

ISSUE

takes leave (such as annual or extended sick leave)

where councillors elect their mayor, councillors elect the deputy mayor for the same two-year period

9. Consider deputy mayoral allowances in light of the expanded role of deputy mayors.

In 2015, a new provision was inserted in the Act to describe the role of a councillor. It says the primary role of a

custodian of the public trust, agreeing to place the public interest above their private interests.

ISSUESCouncillors have a dual role: they represent the community when council makes decisions and they report back

councillors in their role.


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ISSUE

mayor.

'…there needs to be much clearer legislative specification of the respective accountabilities of the CEO and the mayor.'

COMMISSION OF INQUIRY INTO GREATER GEELONG CITY COUNCIL

ISSUES

necessary statutory boxes.


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of the Victorian Public Sector Commission's 10.

Councils are elected by a community to make decisions on behalf of that community and to provide it with services.

A council's legal authority to make decisions derives from the Local Government Act and other Acts (including

a council makes depends in large part on the extent to which it engages with its community when making

ISSUES

for councillors and members of the public.

achieve much deeper engagement. These two examples highlight the shortcomings of the passive engagement approach in the current Act.

18. Include high-level principles about council decision-making processes: namely, that they be open and accountable.

high level principles in the Act.

10

44 Act for the future -

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ISSUES

considers may prejudice the council or any person.

panel.

and that the council considered they could prejudice the council or a person (34%).11

Some states have adopted the types of reasons given in Part 4 of Victoria's as a


it relates to trade secrets or would disadvantage a commercial undertaking

who has delegated authority to make decisions that the council would otherwise make.

ISSUE

can it delegate its powers to approve planning scheme amendments.

11 , (unpublished), p. 35.


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local halls and reserves.

directors.

ISSUES


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ISSUE

Nevertheless, councils are major employers and, in many regions, the major employer in their area. As such,

ISSUESThe local-lawmaking powers of the current Act have only had minor amendment since their enactment. The

, notwithstanding they are subordinate instruments. This means local laws are not subject to review by the

analysis (such as a regulatory impact statement) for local laws.


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covered by local laws under various state Acts including about building site management, planning, animal

There are grounds for

29. Include in the Act principles that local laws must meet12

that is inconsistent with the principles.

32. Consult to determine the appropriate value of a penalty unit for local laws and whether the value should be indexed annually.

12 These are as set out in the current schedule 8 which provides, among other things, that a local law must be within power, clear and


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that represent their interests and deliver for them through visible, accountable leadership

ensure that more Victorians respect, understand and support their elected councillors and believe they

ISSUE

increase the band (currently 5–12) for the number of councillors per council. By 2031, councils such as Greater

34. Extend the band (currently 5–12) for the number of councillors per council to 5–15 and provide the minister

the VEC.

'MAV submits that the current band does not adequately provide for the future growth in council population numbers. It is considered that better representational ratios could be achieved in the future for growth councils if the band was between five and 15 councillors.'

MUNICIPAL ASSOCIATION OF VICTORIA


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A related issue is the method of determining the number of councillors per council within the allowable

commission guide to councillor numbers.

(the others being whether to establish wards, the number of councillors per ward and where to place ward boundaries). The formula could be calculated on the basis of the local government area's number of residents and geographic scale.

the local government area, loading councillor numbers by one, two or three for geographically vast local government areas.

'For efficiency, a schedule should set out the number of councillors for each municipality based on the population and area of that municipality.'

CHRIS CURTIS

ISSUES

unsubdivided

divided into single-member wards

The strength of this range of possible structures is that it allows them to be adapted to suit local circumstances

The weaknesses of this range of structures include that:

13

votes are being treated inconsistently.

13


______________________________________________________________________________________


submissions argued for greater simplicity and consistency in structures and for greater assurance that the one-vote-one-value principle is protected.

be applied in each municipality.14 or

'Councils should not be constituted by wards with different numbers of councillors in different wards. The reasons for this include inequality, as councillors require different quotas used to be elected in the same council election…'

EASTERN REGION GROUP

ISSUES

to the minister. Each council is reviewed every 12 years. These reviews determine the number of councillors, whether the council is divided into wards, the number of councillors assigned to each ward and where

with which they are conducted has been raised as an issue. If councillor numbers were set by a formula (as

structures.

conducted solely to ensure that the number of voters represented by each councillor per ward is within 10%

14


______________________________________________________________________________________


on the basis of:

for a review

ISSUES

have high rates of informality

ballot paper

another candidate.

'Under the full preferential voting system, where voters are required to mark a preference for every candidate listed on the ballot paper, elections with a large number of candidates show a marked increase in informality. Other voting systems may reduce this risk, such as partial preferential voting where voters are required to mark candidates for at least as many candidates as there are vacancies in the election.'

VICTORIAN ELECTORAL COMMISSION


______________________________________________________________________________________


councillor are counted. These votes are redistributed to the unsuccessful candidates who remain eligible, according to the voters' preferences. The candidates in the countback have no votes at the beginning of the

of the vote preferences, the candidate with the least votes is excluded and their votes are redistributed. This

considered in a countback for a casual vacancy. The MAV and others have argued that, in a countback for

of another candidate preferred by the rest of the electorate and on the cusp of being elected at the general

ISSUES

councillors and councils.

easier to follow and logically structured. A suitable model would be the which

40. Consolidate all electoral provisions in a schedule to the Act, arranged according to the model provided by the


______________________________________________________________________________________


ISSUES

15

current Local Government Act. The complex franchise that has resulted is poorly understood by voters and has

Table 6.

16

Assembly (state roll) for an address within the municipality Yes unless aged 70 and over

Up to two owners of rateable property not resident in the

owners listed on council's rate records orNo

Up to two resident owners of rateable property other than the or

No

Up to two occupiers who are ratepayers for a property (such as shop tenants)

– enrolled in place of the owner

No

owning or occupying a rateable property– if occupier, enrolled in place of owner

No

15

more.

a pro

Kerr, B (undated), , pp 10–12.

16 , p. 23.


______________________________________________________________________________________


vote fail to enroll.17

eligible owners of property who live in the municipality who are not on the state roll must apply to be enrolled.

confused about whether they must vote.

Most other Australian states also have council rolls that combine property-franchise voters with state-roll voters.

property-franchise voters, must apply to vote.18

Yes Yes Yes Yes Yes

Yes No Yes Yes Yes

Yes No Yes Yes Yes

Yes No Yes Yes Yes

Some submissions to the review argued for the state roll to be adopted as the basis for the local government

19

17 Department of Transport Planning and Local Infrastructure Victoria 2014, , pp 25–26.

18owners not on the state roll).

19 Department of Transport Planning and Local Infrastructure Victoria 2013,


______________________________________________________________________________________


maintain a property-based franchise but have the advantage of achieving a more accurate council roll.

20

or

enrolled voters.

'Councillors support the principle of "one vote one value" and think that the entitlement to vote should only include those on the state roll; property ownership should not confer additional voting rights.'

FRANKSTON CITY COUNCIL

ISSUES, which gave

should they be elected.

20


______________________________________________________________________________________


for elected candidates or

ISSUESCurrent council electoral arrangements provide that councillors who have a direct interest in the outcome of the

an eligible vote, and have a single deadline for lodgement.

21

21method.


______________________________________________________________________________________



______________________________________________________________________________________


they have had the opportunity to shape it

community vision.

ISSUES

community and the state (principle 2)

'In the knowledge economy, networks displace hierarchies, power is dispersed and people trust peer-to-peer engagement more than they trust top-down authority mediated through institutions. Collaboration is emerging as a powerful disruptor of traditional ways of doing things – from exercising political power to sharing a car ride.'

BUILDING THE LUCKY COUNTRY: THE PURPOSE OF PLACE RECONSIDERED

As the level of government closest to the people, councils have both the opportunity and arguably the

their community's vision and council plan. Almost all (92% of) respondents to community-based research commissioned as part of the review supported the idea that their council should consult with the community about the four-year plan. The desire to be consulted is only likely to intensify in coming years as technological advances allow people more tools with which to be engaged.

determined.


______________________________________________________________________________________


22

engagement processes have improved their scores for these measures and there is a large gap between the highest- and lowest-performing councils on these measures.

In its 2015 report

them to build social cohesion, sustainability and prosperity. The report's authors argued that 'reconsidering the

between key actors to achieve a vision for the future to which all members of its community can subscribe.

'Consultation provisions are too prescriptive and apply to a bunch of random items…the suggestion in the discussion paper that citizens' juries be formalised in the Act is too prescriptive, but this could be included in best-practice guidelines.'

MOUNT ALEXANDER SHIRE COUNCIL

determined by each council.

four-year council plan and ten-year community plan.23


22 Department of Transport Planning and Local Infrastructure Victoria 2014,

23


______________________________________________________________________________________


Councillors elect mayor

Council determines method of community engagement for Council Plan

Council adopts annual budget

Council makes decision on Council Plan

Council reports back to community on Council Plan Council adopts Council Plan

Council adopts annual budget

Councillors elect mayor

Council reports back on Council Plan

Councils adopt annual budget

Council reports back on Council Plan

Councils adopt annual budget


______________________________________________________________________________________


needs.

'Presenters were asked to prepare handouts with their main points. They were briefed in advance

had learnt a great deal from their involvement, and this increased knowledge was due in part to

outcomes did not disappear but were acted on. This enhanced the importance of the process.

'There is a fundamental missing objective: to ensure that the broader community (non-councillors) are provided with a platform to communicate opinions for consideration by council on a regular basis.'

NEWTON GATOFF


______________________________________________________________________________________


including about:

.

ISSUES

publish their minutes on the internet.

The City of Melbourne is a leader in transparency in council governance, making the registers and lists of

lists assets valued over $2.5 million

disclosures of councillors' expense claims

makes audio recordings of council available online alongside the council minutes


______________________________________________________________________________________


ISSUES

24.

including that all councils should have a complaints-handling policy.

Small councils in a region could pool their resources to establish a shared policy and process for reviewing complaints to any one of the councils.

a decision by a council or its contractor25

dealing with customer complaints, and that the process contain an avenue for independent review that is clearly accessible to the public. Policy and statutory decisions of the council would not be subject to the complaints policy.

24 Department of Transport, Planning and Local Infrastructure 2014,

25

'In its current form, the Act only deals with complaint handling in the context of complaints about the CEO of a council. This is not sufficient. The main subject matter of complaints about councils to my office continues to be the manner in which councils handle complaints.'

VICTORIAN OMBUDSMAN


______________________________________________________________________________________



______________________________________________________________________________________



______________________________________________________________________________________


checked.

right thing, in terms of probity and governance.

The created a new framework for councillor

ISSUE

56. Incorporate the current councillor conduct framework largely unamended in the Act, including:

councillor conduct registrars

the role and powers of the minister and ministerial monitors and the Chief Municipal Inspector (CMI).


______________________________________________________________________________________


ISSUES

The reforms26

as serious misconduct and dealt with by councillor conduct panels. It also means that unlawful disclosure of

ISSUES

provisions is prohibited from being a councillor for several years. However, some breaches of the provisions are

model for a simpler framework for dealing with this issue.

26


______________________________________________________________________________________


and the public interest that could result in a decision contrary to the public interest.27

period.

ISSUES

27


______________________________________________________________________________________


ISSUES

The reforms addressed this concern by

Chapter 2 of this paper.

The reforms amended the Act to establish a clear statutory basis for the CMI and assigned the CMI new roles and powers within the councillor conduct framework.

with delegated responsibility under the Act

monitoring the corporate governance of Victorian councils

monitoring electoral provisions

advising the Minister for Local Government where a serious failure of corporate governance has been found at a council.

a role about serious misconduct

a role to advise the Minister for Local Government about governance.


______________________________________________________________________________________


before the Magistrates' Court or having them heard as serious misconduct before a councillor conduct panel


______________________________________________________________________________________



______________________________________________________________________________________


to the governance of individual councils or the integrity of the sector (such as receiving annual reports and

had limited powers to intervene early if a council was having governance failures although the Act did have

ISSUE

Victorians are properly represented: that is, that the number, size and boundaries of councils are appropriate.

districts. These involve the minister establishing local government panels to undertake any proposed restructure reviews and to consider this independent advice before recommending restructuring orders to the Governor

council mergers.

66. Include in the Act principles to apply to a proposal to create a new municipality, that:


for the residents of each municipality

comprehensive range of municipal services and to undertake necessary infrastructure investment and renewal.

municipal boundaries.


______________________________________________________________________________________


ISSUES

an Act of Parliament. There have been six cases of dismissal of a council in Victoria since 1998. In each case, the

the council. The six cases of dismissal are:

Greater Geelong City Council (dismissed by the

Brimbank City Council (dismissed by the : it was due to

to March 2015 and further extended by the

Glen Eira (dismissed by the on 11 August 2005 with a

Nillumbik (dismissed by the in November 1998 with

Darebin (dismissed by the L in May 1998 with a new

The implemented several reforms to address governance and conduct issues earlier so that problems can be resolved in a way that reduces the likelihood of

that council on the advice of the monitor.

should be extended.


this general power


69. Empower the minister to recommend that a councillor be suspended by an order in council where the

or to a failure by the council to deliver good government and


______________________________________________________________________________________


grounds and

including the provisions allowing appointment of administrators.

“As a principle, the Act should provide a broad enabling framework, which enables and empowers high performing councils to get on with their business … while retaining the capacity for the Minister to intervene decisively, where necessary, at an individual or council level in circumstances where repeated governance or performance failures persist.”

KNOX CITY COUNCIL

ISSUES

government boundaries (see 6.1 above).

determined by the commission.

governance issues

“The minister’s role in ensuring the integrity of governance and standards of behaviour should be a reserve power. Most of the work done in this area should be undertaken by other bodies established by the minister or the Act, be they Councillor Conduct Panels, the Inspectorate or some other agency. The minister’s direct intervention should only be a last resort after all else has failed.”

AUSTRALIAN SERVICES UNION


______________________________________________________________________________________


ISSUE

municipal monitor or the CMI.

dealt with by relevant employment laws.

ISSUE


______________________________________________________________________________________


ISSUE

ISSUE

be subject to employment law.


______________________________________________________________________________________



______________________________________________________________________________________


Part B: Innovative, collaborative and efficient councils

strengthen council performance by establishing integrated planning frameworks


______________________________________________________________________________________



______________________________________________________________________________________


The new Act should support council autonomy. To achieve this, we must remove most of the detailed

that councils must deliver. This broad approach is supported by a series of proposals to achieve a properly

plan as the core council planning document.

ISSUES

hierarchy of long, medium and short-term planning.

The council plan is the key strategic plan of the elected council and must fully align with the community plan. All other plans in the framework must then align with the council plan. The annual report becomes the key accountability mechanism.

The current Act gives people the right to make a submission about their council's plan and budget but, as

incorporate their interests and concerns in the plan at the outset.

process in the early stages of developing the strategic planning documents (that is, the council plan, community

“The new Act should seek to streamline the planning and budgeting requirements of Councils so they are more coherent and integrated, including the provision of financial planning that spans 10 years.”

LOCAL GOVERNMENT PROFESSIONALS (LGPRO)


______________________________________________________________________________________


ISSUES

engagement as a principle of the Act and a core role for councillors. The community plan complements the

The council plan should be the key planning document of the new council. It should contain the council's strategic vision and other strategic commitments to deliver services and infrastructure. It is important to give

described in Chapter 4

term.

the achievement of the council plan.

process that also underpins the council plan.

vision statement.

“[They need to] keep residents in the loop, These are the areas that need to be addressed and this is how we are going to address them.”

QDOS RESEARCH FOCUS GROUP PARTICIPANT


______________________________________________________________________________________


ISSUES

resource plan must be prepared for at least four years, making it a rolling plan that must be updated and adopted by council each year.

28

The maintenance and renewal of infrastructure is a key responsibility of a council and most councils have asset management plans for each class of infrastructure assets. Comrie also notes that, 'In all states other than

and covering a planning horizon of at least ten years.'29

classes of assets recognises the importance of councils planning for future asset renewal and maintenance.

for council to review and approve this plan annually.

for a council to review and approve this plan annually. This plan will guide asset planning and inform the council plan.

engagement process.

“In terms of specific planning, there is a case for long term financial and community plans that are linked, and updated on a rolling basis, and for linked operational and resourcing plans that align with a council term…


28

29 op. cit. p 4.


______________________________________________________________________________________


ISSUES

budgets other than if they want to take out borrowings which are unbudgeted.

While it is common for budgets to vary throughout the year due to unforseen circumstances, there is no

is redundant.

must be struck.

“Clarification is needed under section 128 that a revised budget is not a quarterly budget review (provide clear distinction between the two). Revised budgets should be prescribed for certain situations of significance i.e. decisions to take on borrowings, new special charge scheme and not changes in expenditure resulting from normal operations and reasonable variations from budget.”

GREATER SHEPPARTON CITY COUNCIL


______________________________________________________________________________________


Council adopts annual budget (1 year)

Council reviews and updates , and (10+ years)

Council reports back on Council Plan for previous year

Council adopts Council Plan (4 years)








Council reviews and updates , and (10+ years)


Council adopts Council Plan (4 years)







______________________________________________________________________________________


ISSUE



ISSUES

performance.

redundant.


______________________________________________________________________________________


ISSUE

regional issues.30

30 , p. 22


______________________________________________________________________________________



______________________________________________________________________________________


The review also provides the opportunity to modernise councils' commercial policy approaches in areas such

ISSUES

that do not comply with the principles.


social and environmental sustainability over the long term

provide value-for-money services and infrastructure which are accessible and responsive to the community's needs


______________________________________________________________________________________


ISSUES

annually that it is doing so. The best value provisions aim to promote benchmarking and ensure services meet minimum standards. However, councils apply the principles in a wide range of ways and there have been few

management.

ISSUES

will apply to all purchases of goods, services and works. It must also publicly tender for goods or services valued

follow high standards of probity, transparency, accountability and risk management.

“Service sharing should be encouraged and codified in the Local Government Act. The Act should also specifically raise the potential for service sharing not just between LGAs, but between Local and State Governments and, where relevant, other government entities.”

CR SEBASTIAN KLEIN

tender for the provision of goods and services (including thresholds), the process for going to tender and

council to report in its annual report any non-compliance with its procurement policy.


______________________________________________________________________________________


and the

“Councils should be empowered to determine the thresholds for different forms of procurement and the means by which public notice is issued. Individual Councils are then able to appropriately tailor their policy and procedures to their respective needs.”

LGPRO PROCUREMENT SPECIAL INTEREST GROUP

ISSUE

approves. However, the range of council investment vehicles allowed in Victoria is much narrower than in other Australian states, which may result in lower returns for Victorian councils.

council to report any non-compliance with its investment policy in its annual report.

“Councils need broad powers of investment. While it is appropriate that council investments are not too speculative, the current provisions regarding entrepreneurial powers act as a disincentive to innovation. Section 193 is unwieldy and difficult to interpret, and in practice this provision deters innovation and collaboration…

MELBOURNE CITY COUNCIL

ISSUES

management and only enter into debt in accordance with that policy.

report any non-compliance with its debt policy in its annual report.


______________________________________________________________________________________


ISSUES

approved by the council as part of the budget process. However, their disclosure as part of the budget is not mandated.

ISSUEUnder current arrangements, a council must take out insurance against public liability and professional liability.


______________________________________________________________________________________


ISSUE

results in economies of scale and saves money. However, the process in the Act is cumbersome and councils

currently severely restricted and should be encouraged in the new Act.

“…the Act needs to ensure, encourage and enable much greater level of collaboration across the local government sector on service delivery, procurement, boundary interface issues and other projects of common significance.”

MELBOURNE CITY COUNCIL

Councils now have the power under the Act to enter into commercial arrangements subject to strict

consistent with the revised role of a council under the Act.


______________________________________________________________________________________



______________________________________________________________________________________


ISSUEWhile rates and charges are a council's primary source of revenue, they are supplemented by state and




“Consideration could also be given to include a ‘revenue policy’ in the budget and reporting framework. Such a policy could enhance transparency and accountability…



______________________________________________________________________________________


ISSUES

returned servicemen.

land of the Crown, public body or public trustee that is unoccupied or used exclusively for a public or

under the Veterans Act 2005. or

provided the lease, sublease, licence or sublicense is for a nominal amount (that is, the lease or rental amount is very small compared with the actual market lease or rental amount: commonly called a peppercorn rent).


used exclusively for mining purposes.

“In other commercial and industrial situations growth in industry will generally lead to a growth in the rate base, however with mining the result is a reduction in the rate base as farm land is lost and the mining activity that replaces it is exempt from rates under Section 15 4 of the Local Government Act 1989 (the Act).”

HORSHAM RURAL CITY COUNCIL


______________________________________________________________________________________


ISSUESThe Act allows a council to use site value (SV), net annual value (NAV) or capital improved value (CIV) for the purposes of raising general rates where:

SV is the value of the land

CIV is the value of the land and any improvements on the land

NAV is 5% of the CIV or for commercial/industrial assessments it is the net annual rental value.

Currently, 73 councils use CIV and the remaining six use NAV.

31. It is also

32.

There is a strong case to adopt CIV as a uniform system for valuing land as almost all Victorian councils use it

value of a property much easier to understand than NAV or SV.

rates. The City of Melbourne would be exempt from this provision.

“The capital improved valuation (CIV) of land is an accepted and understood method for rating and arguably CIV should be universal.”

GREATER GEELONG CITY COUNCIL

ISSUESA council may declare a municipal charge on all rateable land, to be levied against all ratepayers, as a general

approach to balancing the dependence of some councils on municipal charges may be to retain a council's right

31

32 op.cit., p. 12.


______________________________________________________________________________________


“The Municipal Charge needs to be limited to a maximum of 10% of the overall rate take as it is a flat charge which falls disproportionally on low valued properties.”

CR STEPHEN HART

ISSUES

principle. Some submissions also argued that farms have a perceived lower level of access to council services.

circumstances.

of councils.


______________________________________________________________________________________


ISSUES

non-rateable land. However, councils no longer have responsibility for water supply and sewage services so the power to levy service rates and charges for these purposes is now redundant. Councils may also want to levy other service rates or charges (for example, an environmental charge to fund the purchase of green power for

part of the general rate.

water supply and sewage services.

ISSUES

Before declaring a special rate or charge, a council must determine the total amount of the special rates and charges it will levy and the criteria it will use as the basis for declaring the special rates and charges. It calculates

the scheme). If a council proposes to levy a special rate or charge to recover more than two-thirds of the total

ratepayers object.

scheme where they are funding more than two-thirds of the cost. This is especially true for shopping strips and

the general rate or are a separate charge.


______________________________________________________________________________________


ISSUESA council must allow a person to pay a rate or charge (other than a special rate or charge) in four instalments or

of hardship.

date.

“A key concern for people is the pressure of the quantum of rates and how they are legislated to be paid. Greater freedom should be set so that councils can offer a range of payment options to rate payers.”

SOUTH GIPPSLAND SHIRE COUNCIL

ISSUEA council may grant a rebate or concession for any rate or charge to assist the proper development of the

133. Allow a council to use rebates and concessions to support the achievement of their council plan's strategic

“In recent years, more and more Councils are recognising that extra assistance needs to be given to lower income ratepayers and provide their own, Council funded, waivers or concessions. The current legislation does not make this process easy and straight forward….

REVENUE MANAGEMENT ASSOCIATION


______________________________________________________________________________________


ISSUES

council must, if any payment of the rate or charge has been made, refund to the current owner of the land

person successfully appeals a decision of council about their rates and charges (such as about the rateability of

134. Clarify in the Act that, where a ratepayer successfully challenges the rateability of land, a refund of rates may only be backdated to the date of most recent ownership.

ISSUESThe Act sets out the grounds for which reviews and appeals of rates and charges may be raised, and the

A person may apply to VCAT on special grounds for a review of a council decision imposing a special rate or

VCAT must take into account any relevant planning scheme.

decision.


______________________________________________________________________________________


ISSUESThe primary purpose of the

The states that such rates as the council thinks reasonable are to be

what it considers reasonable allows scope for arbitrariness and may contribute to uncertainty.

in the

“The Cultural and Recreational Lands Act 1963 should be incorporated into the Local Government Act because it is an Act that’s primary purpose is for the administration of rates that are payable to Council’s in respect of recreational Lands. There is no apparent reason why this Act should continue to exist in isolation.”

DOMENIC ISOLA, CEO HUME CITY COUNCIL


______________________________________________________________________________________


ISSUEThe primary purpose of the Electricity Industry Act 2000

Electricity Industry Act 2000 in the Act.


______________________________________________________________________________________



______________________________________________________________________________________


Part C: An easy to read, accessible act The Act will set out the principles by which councils are to achieve outcomes clearly expressed in the Act. Processes for achieving these outcomes will be set

an clear and accessible Act.


______________________________________________________________________________________



______________________________________________________________________________________


outcomes

ISSUE

33 and a plan of the remaining provisions in the Act.

140. Include high-level statements to frame the structure, language and content of the remainder of the Act,

33 provides an example of such a statement.


______________________________________________________________________________________


High level statements: powers

(Act)

ISSUESIn 2003, the current Act was amended to include a set of principle-based statements in a preamble and charter at the front of the Act. The preamble is a broad statement of the purpose and intent of the Act. The charter

exercising their powers:



______________________________________________________________________________________



“Prescription within the Act needs to be fair and reasonable, primarily focused on matters of principle rather than methodology….

MURRINDINDI SHIRE COUNCIL

ISSUES

hierarchy between having:


______________________________________________________________________________________


ISSUESThe new Act will provide councils with greater autonomy to develop policies, procedures and processes that

is facilitated and how councillors are briefed). It will be up to councils to determine the processes for developing their strategic documents, and broadly their contents and formats.

However, some councils may seek more guidance than others about how to create their own policies, procedures and oversight mechanisms from scratch. Greater autonomy may create governance risks for councils with fewer resources to develop policies and procedures.

be in the form of guidelines and formal and informal advice to the sector.

“To be effective, legislation must be complemented by robust policy frameworks and other practical supports.”


34

and Electricity Industry Act 2000 (as

ISSUESThe Act's provisions about roads existed before the

under the one Act and one minister, enabling a coordinated strategic approach to road issues across the state.

34 Appendix 7 has a list of these Acts.


______________________________________________________________________________________


“Dealings with Roads, including ownership and status, are currently spread across a number of Acts. ….. Rationalisation of these various provisions would reduce confusion and streamline processes that are often complex and poorly understood.”

ASSOCIATION OF CONSULTING SURVEYORS VICTORIA

management.

“The Local Government Act should be streamlined and overlapping provisions removed particularly in regards to issues related to roads management and the electoral process.”

MANNINGHAM CITY COUNCIL

ISSUES

but the Act does not clearly specify how management or control is to be exercised. The Act provides some

the .

However, the current Act does not provide guidance about how these powers are intended to operate in

these are included in the new Act or in the

ISSUE


______________________________________________________________________________________


is enacted.

“A comprehensive link/index to other legislation could be incorporated as a Schedule with the Act – would overcome the difficulty of the Act ballooning out of all proportion.”

MAROONDAH CITY COUNCIL

ISSUE

ISSUEThe

review.

electoral provisions. Consider ways to modernise the Act and remove redundant or outdated provisions.


______________________________________________________________________________________



______________________________________________________________________________________



______________________________________________________________________________________


The government invites all Victorians to get involved in the review of the by making a submission about the proposed

ways.

via the online submission form, or by uploading your completed submission form at the Your Council Your Community website: www.yourcouncilyourcommunity.vic.gov.au

your completed form to [email protected].

your completed form to:

C/o Local Government Victoria

Submissions in other formats will also be accepted.

and venues for these forums will be advised at www.yourcouncilyourcommunity.vic.gov.au.


______________________________________________________________________________________



______________________________________________________________________________________


guide development of the new Act. The principles provide a clear and logical way to address issues arising from

They are also signposts to the outcomes the new Act envisages. Accordingly, the review has used them as

Principle 1 speaks to the need for the new Act to encourage and support contemporary councils that can meet

been redundant for years. The new Act must be neutral about the best, modern tools for governance and

(which was a comprehensive compendium of the roles that councils then performed), the 1989 Act

bodies.

This principle reinforces the importance of councils governing in an environment fully authorised by their

they must implement prescribed state government policies.

their role in delivering community leadership. Elements of this framework include reinforcing the authority of

responsibility of councillors under a new Act.


______________________________________________________________________________________


strategic planning approaches and to report on these to the community. They also remove unnecessary

government and in the private and non-government sectors of the importance of partnerships in delivering

Non-statutory guidelines.

provisions in the new Act will be principle-based: they will specify the outcomes that councils must deliver

approach for their circumstances.


______________________________________________________________________________________


create a more contemporary, accessible, plain English Act, that meets current and future needs of the community and local government sector.

2. The review will consider all aspects of the current Local Government Act 1989 with a view to more

the circumstances in, and the extent to which, the Victorian Government, through the Minister for Local Government, can guide, direct or intervene in council governance.

responsibility of the Minister for Local Government (for example, The Planning and Environment Act 1987),

3. The review will have regard to:

government in Victoria charged with responsibility for delivering peace, order and good government

Government.


______________________________________________________________________________________


4. The review will involve extensive engagement with the local government sector and the broader Victorian community, through the release of papers and recept of submissions, to ensure their views are

5. Key stages include:

More details about the terms of reference and other aspects of the review are on the Local Government Act

keep informed about developments

view a range of background papers


______________________________________________________________________________________


There were 348 submissions received, excluding six submissions that were not published on account of being

the discussion paper:

1 resident = 1 vote

A McLellan

Adjungbilly Pty Ltd

Alan

Alan Getley

Alan Temple

Alan Woodman

Alec Sandner

Allan P Bellmont

Angela K

Anita Voros

Ann Zaccaria

Anne Bonello

Anthony Bonello

Audrey Yallop

Australian Services Union, Victorian and Tasmanian

Banyule City Council

Barbara Thompson

Bass Coast Shire Council

Bayside City Council

Bendigo Domain Village

Beryl Beel

Beverley Paterson

Boroondara City Council

Brian Smith

Brimbank City Council

Brunhilde Krix

Carol Walker

Chris Erlandsen

Chris Harrison

Colin Burns

Colin Price

Concord Place, Brookland Greens, Cranbourne

Corangamite Shire Council

Cr Bo Li, Darebin City Council

Cr Darryn Lyons, Mayor City of Greater Geelong

Cr Michael Neoh, Warrnambool City Council

Cr Peter Cox, Greater Bendigo City Council

Cr Tom Melican, Banyule City Council

Craig Pierce

Craig Walters

D. Cashion

Daniel Gerrard


______________________________________________________________________________________


David Hopkirk

Delys Gourley

Don Mays

Donald Pinsent

Dorothy Young

Douglas Godleman

East Gippsland Shire Council

Edward Buckingham

Ellen Csar

Evelyn Buckingham

Gannawarra Shire Council

George McMurtry

Georgina Wilma Wailes

Gerard Pearson

Gillian Waterman

Gisela Holm

Glen Eira City Council

Glen Eira Environment Group

Glenelg Shire Council

Golden Plains Shire Council

Graeme Paul

Greater Bendigo City Council

Greater Geelong City Council

Greater Shepparton City Council

Hawthorn ALP Branch

Heather Charles

Heather Mays

Helen Helliar

HIA

Hilda Collins

Hildegare Hopf

Hopeful

Ian Brown

Ian Hundley

Indigo Shire Council

Ingeborg Gungl

Irene Buck

Iris Bowman


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Brimbank City Council

Karen and Danny Ellis

Karl Schiesser

Kathleen Drohan

Kay Hunnam

Kaye Hammond

Ken Merrey

Kevin Gourley

Kevin Krahe

Kevin Leahy

Kids By The Bay Children's Centre

Knox City Council

Lance Allen

LGPro

LGPro Procurement Special Interest Group

Lois Chesser

Lorraine Leahy

Lorraine McLellan

Lyn Smith

Mainstreet Australia

Manningham City Council

Maree Williams

Marg Allen

Margaret Anderson

Margaret Hadley

Margaret Thomas

Maribyrnong City Council

Marisa Goding

Marlene Kimpton

Maroondah City Council

Mary-Lou Howie

Mavis Mrage

Melbourne City Council

Melbourne Water

Melton City Council

Michael Drohan

Michael McKenzie

Mieke Van Besouw

Mitchell Shire Council

Moira Shire Council

Moonee Valley City Council

Moreland City Council

Mount Alexander Shire Council

Murrindindi Shire Council

Nillumbik Shire Council

Noel Cashion

Norm Hart

Norm Kimpton

Northern Grampians Shire Council

Pamela Dear

Pat Merrey

Patricia P Godleman

Patricia Price

Patricia Woodman

Paul Caine

Pauline Lowe

Peter Craig

Peter Douglas

Peter Loney


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Philip Star

Port Phillip City Council

Property Council of Australia

Pyrenees Shire Council

Accord

Sandra Bligh

Sandra Douglas

Save Moonee Ponds Inc.

Snickers

South East Councils Climate Change Alliance Inc.

South Gippsland Shire Council

Southern Grampians Shire Council

Stonnington City Council

Stuart Bligh

Surf Coast Shire Council

Teresa Schiesser

The Geelong Chamber of Commerce

Thomas Walker

Tony

Tony Hooper

Trevor Dance

Valerie Burston

Vaughan Duggan

Verona Hart

Victorian Aboriginal Heritage Council

Victorian Chamber of Commerce

Victorian Electoral Commission

VicTrack

W Helliar

Warren Wealands

Wendy Pinsent

West Wimmera Shire Council

Whitehorse City Council

Wyndham City Council

Yarra City Council

Yarriambiack Shire Council

Yvonne Campbell


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The review has been supported by six technical working groups. The names and members of the technical working groups are listed here.

David Thompson, Manager Governance, Boroondara City Council

Doug Evans, Manager Governance, Cardinia Shire Council

Nick Andrianis, Coordinator Governance, Monash City Council

Stephen Cooper, Consultant

Tim Presnell, Senior Advisor, LGV

Clare Murrell, Senior Advisor Community Engagement, Yarra City Council

Pauline Gordon, Director Community Wellbeing, City of Greater Bendigo

Dan Hogan, Manager Customer Engagement, Melton City Council


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Greg Stevens, Manager Property Services, Melbourne City Council

Leighton Vivian, Manager Policy Development, LGV

Kevin Leddin, Director Corporate Strategies, Warrnambool City Council

Mark Grant, Director Sector Performance, LGV

Shaun Collins, Coordinator Procurement, Wyndham City Council

Aaron Hollow, Manager Statutory Services, East Gippsland Shire Council

David Durose, Local Laws Coordinator, Melton City Council

David Walker, Local Government Inspectorate

Kim Wood, Chief Legal Counsel, Melbourne City Council

Megan Kruger, Governance Coordinator, Southern Grampians Shire Council


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Dandenong Wednesday 2 March 2016

Sale Wednesday 2 March 2016

Melbourne CBD Tuesday 8 March 2016

Sunshine Thursday 17 March 2016

Maryborough Wednesday 23 March 2016


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Campbell Duncan The 1989 Act

The rights of ratepayers

Graham Sansom Towards Victoria’s new Local Government Act: experience and ideas from

Yehudi Blacher PSM Imagining local government in the 21st century


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They were:


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______________________________________________________________________________________


Coastal Management Act 1995

Coastal Management Act 1995

Disability Act 2006

Electricity Safety Act 1998

Emergency Management Act 1986

Planning and Environment (Planning Schemes) Act 1996

Planning and Environment (Planning Schemes) Act 1996

Public Health and Well Being Act 2008

Public Health and Well Being Act 2008

Water Act 1989


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______________________________________________________________________________________


Capital improved value

and Compliance Inspectorate

Local Government Professionals

Local Government Victoria

Panel appointed by the minister to carry out a review and advise the minister on

MAV

Process to provide for circumstances where the minister may determine that compliance

the municipality

Net annual value

vacancies

A group of councils that have entered into an agreement to provide library services

The State of Victoria

Site value

The Act

A council not divided into wards

The Minister for Local Government

VCAT

VEC Victorian Electoral Commission


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______________________________________________________________________________________


Blacher, Y 2015,

Planning and Local Infrastructure Victoria 2014,

btlc-5-091015.pdf

Department of Environment Land Water and Planning 2015,

Department of Environment Land Water and Planning 2015,

Department of Transport Planning and Local Infrastructure Victoria 2013

Department of Transport Planning and Local Infrastructure Victoria 2014,

Department of Transport Planning and Local Infrastructure Victoria 2014,

Department of Transport Planning and Local Infrastructure Victoria,

Duncan, C 2015,

Duncan, C 2015,

Duncan, C 2016,

Killey, I, 2016,

Sansom, G 2016,


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Act for the Future Directions for a new Local Government ActSubmission Template

Name David ThompsonSuburbAge*Gender**Please see the last page of this document for our terms and conditions around privacy of your information

If you work in an organisation or council, please provide the following information:

Organisation or council name Boroondara City CouncilPosition Manager GovernanceAre you providing thissubmission on behalf of theorganisation or council?

Organisation

Key information about making a submission

Who can make a submission?Anyone is able to make a submission to the Local Government Act review Directions Paper whether you're respondingyourself, or on behalf of a community group or local council.

How will submission be used?All submission received will be considered and used to inform the next stages of the review.

Will submissions be made publicly available?Written submissions (electronic and physical) will be made publicly available unless confidentiality is requested, andgranted by the Local Government Act Review Advisory Committee, or if the committee determines the material shouldremain confidential. Submissions that are defamatory or offensive will not be published.

Can I provide a submission in another format?It is strongly preferred for submissions to be made through the online form or by completing this form. However, ifanother format suits your needs or the requirements of your organisation you are welcome to use another format.

Do I have to respond to all of the questions in the template?You're welcome to respond to as many, or as few, of the questions as you would like.

How do I make a submission?Submissions can be made in three ways:

Online via the online submission form, or by uploading your completed submission formEmail your completed form to [email protected] your completed form to:Local Government Act Review SecretariatC/o Local Government Victoria,PO Box 500, Melbourne VIC 3002

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kadams

Text Box

Attachment 2

Chapter 2: Contemporary councils capable of meeting future challenges

Direction 1 proposes to:Require councils to take the following principles into account when performing their functions and exercisingtheir powers:


the need for deliberative community engagement processes

the principles of sound financial management


the potential to cooperate with other councils, tiers of government and organisations

plans and policies about the municipality, region, state and nation

the need for innovation and continuous improvement

any other requirements under the Act or other state or federal legislation.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is of the view that a general power of competence is an appropriate reform direction for the Local Government Act 1989 (the LGA) and the articulation of overarching principles, rather than prescriptive limitations, is the appropriate means to support the role of local governments.

Council is also broadly supportive of the principles enunciated above, and in particular the inclusion of innovation and continuous improvement which is already a hallmark of modern day local governments.

While committed to effective community engagement processes, Council has some reservations about the enshrining of "deliberative" community engagement as a principle.

While currently popular, the term is neither clearly defined, nor widely understood. As a consequence, “deliberative community engagement processes” are often described by principles or illuminated by comparison to other types of engagement (i.e. “what it is not”).

In the absence of a consistent definition, there is no consistent understanding about how such engagement processes would be practically applied to the broad range of circumstances experienced in local governments.

In some literature, deliberative engagement is described as existing to the right of the International Association for Public Participation (IAP2) Spectrum, being the “Collaborate” or “Empower” levels of consultation. The IAP2 spectrum however recognises "differing levels of participation are legitimate depending on the goals, time frames, resources and levels of concern in the decision to be made." (see https://www.iap2.org.au/resources/public-participation-spectrum).

That is to say, non-deliberative consultation methodologies such as “Inform” “Consult” and “Involve” are legitimately employed where they are appropriate to the issue at hand.

Council has adopted a carefully considered Communication and Engagement Strategy which outlines how Council will create genuine and transparent opportunities to enable community members to provide feedback about matters of interest to them through Council’s decision-forming process.

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This strong policy framework is designed to assist Council to select of the appropriate level of participation (with particular reference to the IAP2 spectrum). It is Council's view therefore that the overarching principles adopted in the LGA should not be misunderstood to push all Council’s engagement activities toward “deliberative engagement” at the “collaborate” and “empower” levels in the spectrum.

Deliberative consultation requires extensive education and information provision over a period of days if not weeks. The cost and time involved would be prohibitive if this approach was applied indiscriminately to all consultation activities. Deliberative consultation’s aim is to provide adequate background and topical information delivered from a wide range of stakeholders in order to allow those consulted to make an informed decision on a specific issue. The remit of deliberative consultation needs to be specific enough so that the group being consulted has the ability to make a clear decision between finite alternatives.

Deliberative consultation is not appropriate for broad ranging community consultation where the range of issues being considered would not allow sufficient information to be provided for an informed decision and where the question or decision cannot be accurately defined between alternative courses of action.

As such, Council views the current principle, referencing "deliberative community engagement" to be both impractical and costly; and likely to drive unrealistic community expectations.

Council would of course, support and amended principle, namely the "need for appropriate and effective community engagement processes".

Should the Victorian Government proceed with the principle in its current form, the Government will also need to further define “deliberative engagement processes” and the principles that underpin such processes.

The additional principles must be clear to council staff and community participants alike, enabling a practicable approach to consultation to be planned and delivered with clear expectations on all sides. These underlying principles will also need to be sufficiently pragmatic that councils can approach all consultation in a manner which is sensitive to the context of each issue and the local community interests.

Clarity of the principles will also make evaluation of consultation outcomes more effective.

The sixth dot point which states: “plans and policies about the municipality, region, state and nation” does not make sense as a principle. It is essential that local governments are both encouraged and acknowledged to focus on strategic issues within their municipalities.

The following replacement for this principle is suggested: Thinking and acting strategically in planning and policy development for the future

It is noted that the suggested principles make no reference to good governance. This may be because the term can be difficult to define. References to transparency and accountability in the list may be seen as substitutes. However, a stronger statement could be made to raise expectations about the obligation the elected council has to work constructively in the interests of their community. This principle should be drafted to create obligations in the administration to contribute to the effective functioning of the council.

An additional principle may be expressed as follows: Working collaboratively and constructively to deliver effective governance

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Direction 2 proposes to:Provide that the role of a council is to:

plan for and ensure the delivery of services, infrastructure and amenity for its municipality,informed by deliberative community engagement

collaborate with other councils, tiers of government and organisations


perform functions required under the Act and any other legislation.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of the need to clearly set out the role of councils.

Feedback has already been provided regarding the reference to "deliberative community engagement" (See Direction 1). It is also noted that in the context of Direction 1, specific reference to community engagement in dot point 1 above is entirely redundant and should be removed.

Council's plans for the delivery of infrastructure for example, should be as much informed by the plans and policies of the Victorian and Federal Governments, and the principles of sound financial management, as they are by community engagement.

The specific inclusion of community engagement in dot point 1 could be interpreted as suggesting additional weight is given to community engagement outcomes, over and above the weight afforded to the other seven overarching principles espoused in Direction 1.

It is also noted that some roles are not sufficiently anchored to the "interests" of its local community. Council is of the view that this is a critical aspect and Council's role should be expressed as:

collaborate with other councils, tiers of government and organisations in the interests of its community.

act as an advocate for and in the interests of its local community.

Additionally, Council is quite concerned about the expression of its role being to "ensure" the "delivery of services, infrastructure and amenity for its municipality".

Much of the infrastructure within each municipality for example is not provided or controlled by local government, for example, freeways and arterial roads under the control of VicRoads, sewerage or other utility infrastructure.

Many aspects of local amenity are similarly outside the control of local government. For example, the local government sector has long advocated for greater control over planning outcomes in their municipalities, which have a direct impact on infrastructure and service demands and in particular the amenity and neighbourhood character of our cities.

This expression may create unrealistic expectations in the community about a council's power to provide or maintain infrastructure, services or amenity. For example, in May 2016, the Minister for Planning overturned his own department's decision to implement mandatory height controls in the Planning Scheme for Boroondara's three commercial corridors.

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Council undertook extensive community consultation regarding these controls which had overwhelming community support. Despite the certainty they brought to residents and developers about the future development of these corridors, they have been replaced by discretionary height controls, introducing considerable uncertainty regarding the future residential amenity of residents in and abutting these commercial corridors.

Similarly, the demand for library services is rapidly changing and while in past decades the State Government has played an active role in the provision of grants for public libraries, funding for this important community infrastructure is diminishing.

Cost shifting in this and many other areas where responsibility for service provision is shared amongst the three tiers of government, is placing increasing pressure on the ability of local government to "ensure" services can continue to be provided to the community at their current levels, or indeed, at all.

Unless the review of the LGA is anticipated to providing funding certainty and greater autonomy to local government, Direction 2 should not commit the sector to "ensuring" services, infrastructure or amenity, and instead set out its role to:

Plan for and deliver services and local infrastructure for its municipality; and Plan for and enhance the amenity of its municipality.

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Direction 3 proposes to:Provide that councils have the powers described in the Act and in other legislation.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?As a principle, enabling rather than prescriptive legislation is considered to be the best way forward. Seeking to exhaustively prescribe the list of what local government can and can't do carries a significant risk of unintended consequences.

Council is therefore of the view that a general power of competence, subject to restrictions, is the more appropriate reform direction for the LGA. This would establish the default position regarding Council powers to "yes, unless specifically excluded" avoiding uncertainty and unintended consequences.

With regard to unintended consequences, it is noted that the current Act requires a council to prepare and execute comprehensive instruments of delegation and sub-delegation in order to effectively manage its decision making functions. Often such instruments contain a range of delegations and sub-delegations which would fall within the parameters of Section 3E(1)(h)1 buthave no specific head of power within an Act or local law.

Typically, these delegations are made to avoid any doubt that council officers have the administrative powers necessary to carry out their duties. Examples include but are not limited to delegations for the authorisation of payments, or the execution of applications for government grants. Consequently, the removal of the general power in Section 3E(1)(h) may on the one hand advance, and on the other hand diminish, certainty of councils’ powers.

Additionally, instruments of delegation often refer to Local Laws which prescribe Council powers, and which are then delegated to officers. Should Direction 3 proceed as foreshadowed, it should clearly reference Council powers established under local laws.

1 Local Government Act 1989, Section 3E, "What are the functions of a Council? (1) The functions of a Council include -

(h) any other function relating to the peace, order and good government of the municipal district. "

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Direction 4 proposes to:Make the following reforms to the election of mayors:

Elect all mayors for two year terms

Retain election of the mayor by their fellow councillors for most councils

Provide the minister with power to approve the direct election of mayors for councils where:o the size of the council is sufficient to support the additional costs of direct electiono the significance of the council in its own terms or in terms of the region in which it is

situated supports a directly elected mayor

o community consultation provides evidence of strong support for a directly elected mayor,recognising the additional costs to the community.

Should the minister approve direct election of a mayor for a municipality, the City of Melbournemodel will apply. This is that the mayor and deputy mayor are jointly elected by voters andcouncillors are elected at large to represent the entire municipality.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is strongly opposed to this direction.

The suggested provisions fail to respect the fact that local governments are elected levels of government whose autonomy should be respected and acknowledged. The role of mayor is a first among equals with no executive authority. There is no structure or framework which creates any relationship between a mayor and their colleagues or a mayor and the administration. A mayor can often be elected on the basis that support is somewhat fragile and may lack longevity. It may also be the case that once elected a mayor fails to provide the representation, statesmanship and informal leadership required to support good governance. The prospect of this arrangement being in place for a period of two years is untenable. The demands of the role are such that there would be a number of councillors for who the prospect of a two year term would simply not be possible having regard to work or family commitments. Candidates should not be excluded on this basis. Each elected local government should be free to determine arrangements which meet their needs.

The notion that the minister will have the power to direct that another level of government should be required to adopt a model of directly elected mayors is simply an insult to the autonomy of local government. The concept of directly elected mayors is fundamentally flawed in that candidates elected on this basis seem to adopt the view that they have a mandate and yet they simply remain one of a group of elected representatives each of whom has as single independent vote. A directly elected mayor has no capacity to direct their colleagues or to make the aspirations of their colleagues subservient to their own simply because they have been directly elected. The model simply creates the foundation for destructive behaviours and a dysfunctional council. One only has to look at the most recent experiment with this model to see the flaws. This history should not be ignored.

The model of councillors being elected at large, as is the case in the City of Melbourne model, is also opposed. Each local government should retain the right to determine how best to meet the needs of representation in its community. At the last electoral representation review the City of Boroondara community spoke with a loud and strong voice to retain its individual ward-based councillor representation and will continue to resist any departure from this model.

Council is of the view that the Directions Paper has failed to identify any failings of the one year term that warrant a change to two year terms; or sufficient benefits upon which to base a change to mandatory two year terms.

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Council is consequently of the view that it is preferable to retain the current provisions of the Act, which provide individual Councils the autonomy to:

a) Elect councillors to a one year mayoral term; b) Resolve to elect councillors to a two year mayoral term; or c) Realise the benefits of two year terms (or greater) by electing councillors to consecutive one

year terms. d) Determine for themselves whether they wish to create the model of directly elected mayors.

Direction 5 proposes to:Expand the role of the mayor to include the following powers and responsibilities:

to lead engagement with the community on the development, and the reporting to thecommunity at least annually about the implementation, of the council plan

to require the CEO to report to the council about the implementation of council decisions

to appoint chairs of council committees and appoint councillors to external committees that seekcouncil representation

to support councillors—and promote their good behaviour—to understand the separation ofresponsibilities between the elected and administrative arms of the council

to remove a councillor from a meeting if the councillor disrupts the meeting

to mutually set council meeting agendas with the CEO

to be informed by the CEO before the CEO undertakes any significant organisational restructuringthat affects the council plan

to lead and report to council on oversight of the CEO's performance

to be a spokesperson for the council and represent it in conduct of public civic duties.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Overall, Council is not supportive of this direction.

to lead and report to council on oversight of the CEO's performance

In light of the close working relationship between mayors and CEOs, Council is of the view that this responsibility is effectively the codification of the model already in place at Boroondara.

to be a spokesperson for the council and represent it in conduct of public civic duties.

Council is supportive of the mayor having this responsibility. It is noted however that many councils adopt policies which provide guidance to mayors and councillors regarding media relations in particular. Accordingly, consideration should be given to reflecting that the mayor's spokesperson role should be discharged in accordance with any relevant council policies.

to lead engagement with the community on the development, and the reporting to the community at least annually about the implementation, of the council plan

It is noted that Direction 46 proposes to require council to prepare a community consultation and engagement policy. Council is supportive of this position having had such a policy in place for many years.

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Additionally, Council supports Direction 98 which proposes to continue to require a council to include information in its annual report of operations about achievements against its council plan, community plan, financial plan, asset plan and budget.

In the context of Directions 46 and 98, Council considers it unnecessary to introduce a legislative power and responsibility for the mayor to lead engagement with the community on the development of the Council Plan or the content of the Annual Report.

Finally, Council is cautious of legislative reforms that introduce ambiguity in the division between operational and political arms of Council. The expanded role highlights the leadership role of the mayor, but does not clearly delineate the limits of the mayor's power when exercising that leadership role.

to require the CEO to report to the council about the implementation of council decisions

Council notes proposed Direction 19 would require councils to adopt a set of rules concerning internal processes that are consistent with high level principles in the Act.

Council is supportive of such a direction, as it respects the autonomy of each council to consider and determine appropriate internal processes and controls according to its needs, including any requirement that the implementation of council decisions is reported back to the council.

Consequently Council is of the view that it is entirely unnecessary to set out such a prescriptive powers for the mayor when Council already has the power to require such reports, whether as part of its original decision, or in accordance with established policies and procedures set down for the administration to follow.

It is noted that the Directions Paper rightly concludes "there should be a clear line of authority and accountability for implementing council decisions, providing advice and for conducting the operational business of council services". Any proposal which contemplates the mayor having the capacity to direct the CEO is opposed. This approach compromises the separation of powers between the administration and elected representatives and sets up the potential for the wishes of the elected council to be ignored by the mayor in pursuit of the mayor’s own agenda.

to remove a councillor from a meeting if the councillor disrupts the meeting to mutually set council meeting agendas with the CEO

Section 91(1) of the current Act provides "A council must make local laws governing the conduct of meetings of the council and special committees."

The City of Boroondara already has a comprehensive Meeting Procedure Local Law which includes provisions for the removal of disruptive councillors. The Directions Paper acknowledges this is also a feature of many councils' local laws.

Importantly, and unlike the proposal as set out in the Directions Paper, Council's Meeting Procedure Local Law ensures that this power is vested not just in the mayor with respect to council meetings, but also the chairperson of any special committee.

Similarly, Council has the capacity through the Meeting Procedure Local Law, were it of a mind to do so, to prescribe a process of councillor or mayoral consultation with regard to the business of agendas.

The proposal that the mayor play a role in setting agendas is also opposed for the reasons expressed earlier in relation to the mayor having the capacity to direct the CEO.

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Again, Council supports the position in the Directions Paper that "there should be a clear line of authority and accountability for implementing council decisions, providing advice and for conducting the operational business of council services".

to appoint chairs of council committees and appoint councillors to external committees that seek council representation

At the City of Boroondara, Council appoints the chairs of Council's various special committees and Council's representatives on various internal and external bodies or committees concurrently with the annual election of the mayor.

Council is of the view that the process of appointing chairpersons and Council representatives to various committees is a Council power. As such, Council is opposed to mandating the transfer of Council powers to the mayor.

As previously indicated, Council is of the view that it is entirely unnecessary to set out new, prescriptive powers for the mayor. Each elected council should be free to decide which approach will enable it to best meet the needs of its community.

to be informed by the CEO before the CEO undertakes any significant organisational restructuring that affects the council plan

Notwithstanding Council's position on the substantive intent of this reform, it should be noted at the outset that this proposal is clearly a duty imposed upon the CEO. As such, it is inappropriate for it to be expressed as a "power" or "responsibility" of the mayor.

The Directions Paper rightly concludes "there should be a clear line of authority and accountability for implementing council decisions, providing advice and for conducting the operational business of council services". Presently, that line of authority is directly from the CEO to Council.

The Directions Paper suggests that this reform would support the mayoral office however Council is of the view that it does nothing to support the accountability of the CEO to Council for either establishing and maintaining an appropriate organisational structure [Section 94A(1)(a)] or for implementing and delivering the Council Plan [Section 94A(1)(b)].

For example, the mayor has no concurrent responsibility to report this information to Council. The mayor is also prohibited from responding to the CEO in order to influence or change the decision of the CEO, as to do so would be contrary to the prohibition in Section 76E of the current Act regarding improper direction and improper influence.

In light of the mayor's inability to action the advice received from the CEO, Council is opposed to this reform.

to support councillors - and promote their good behaviour - to understand the separation of responsibilities between the elected and administrative arms of the council

Council is supportive of the mayor having this responsibility. It is noted however that there is some incongruity between this provision and some of the additional powers proposed for the mayor.

When mutually setting council meeting agendas, is the mayor empowered to direct the CEO that a decision should be made under delegation instead of being brought before Council for example.

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The Directions Paper rightly concludes "there should be a clear line of authority and accountability for implementing council decisions, providing advice and for conducting the operational business of council services". Presently, that line of authority is directly from the Chief Executive Officer, to Council and supports a clearly understood separation of responsibilities.

The Directions Paper interjects an additional line of authority and accountability between the mayor and CEO, without envisaging any line of accountability from the mayor to council.

Council can presently hold the CEO accountable for his management of council meeting agendas, however under the proposed direction, how would Council hold both the mayor and the CEO accountable where the mayor has exercised his/her power to "mutually set council meeting agendas with the CEO".

There is some wisdom in the old adage that "shared accountability is no accountability" and that without clear lines of mayoral accountability, this provision has as much prospect of fracturing mayoral/CEO relationships as enhancing them.

Direction 6 proposes to:Review the formula for setting mayoral allowances in light of the proposed expanded role of mayors.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is of the view that it is appropriate to review the formula for setting mayoral and councillor allowances to ensure those allowances are calculated appropriately to reflect the duties, obligations and responsibilities imposed upon mayor and councillors in the discharge of their duties as elected representatives.

Direction 7 proposes to:Formalise the status of the Local Government Mayoral Advisory Panel (LGMAP) by making it a statutoryadvisory board to the minister under the Local Government Act.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this reform direction.

Council is also of the view that the LGA should include appropriate transparency provisions regarding:

the composition of the panel representing metropolitan and regional councils the criteria for ministerial appointments; and the keeping of and circulation of agendas and minutes of LGMAP meetings.

Additionally, Council believes the representative nature of the panel would be supported by provisions requiring that in addition, and subsequent to the ministerial appointments, at least one nominee is appointed to the LGMAP by a direct vote of elected mayors.

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Direction 8 proposes to:Require all councils to appoint a deputy mayor elected in a manner consistent with the mayor. That is:

where councillors elect their mayor, councillors elect the deputy mayor for the same two yearperiod

where the mayor is directly elected, a deputy mayor is jointly elected with the mayor on the sameticket.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is fundamentally of the view that the LGA reforms should respect and promote the autonomy of councils to make decisions with regard to its particular circumstances and the best interests of its community.

Reforming the Act to reflect the custom and practice of many, but not all local governments, of appointing a deputy mayor is therefore considered inappropriate.

Council is of the view however that the appropriate reform is not to mandate the appointment of a deputy mayor, but to include enabling provisions for those councils who choose to elect a deputy mayor.

Mandatory provisions regarding the appointment, role and functions of a deputy mayor may bring a level of consistency to the sector, but equally have the potential to bring significant disruption. For example what provisions and protocols would apply to the exercise of mayoral powers outlined in Direction 5 by a deputy mayor, where that exercise was inconsistent with the expectations and intentions of the elected mayor?

Prescriptive provisions also fail to recognise that many councils, like the City of Boroondara, have long standing processes in place which have precluded the need to elect a deputy mayor. These include protocols for the election of a temporary chairperson in Council's Meeting Procedure Local Law, and established custom and practice for ward councillors to "deputise" for the mayor at civic functions when he or she is unable to attend.

Mandatory provisions also inhibit the autonomy of individual councils to prescribe the deputy mayoral role with appropriate functions and powers that fit its particular needs, circumstances, processes and procedures. They also fail to recognise the potential benefits of alternative deputy mayoral structures.

For example, the Directions Paper recognises the deputy mayoral role would be a useful learning opportunity for prospective mayors. Despite the capacity of a deputy mayor to develop, improve and exercise effective leadership this is incongruous with Direction 4 which provides for mandatory two year mayoral terms. Notwithstanding Council's opposition to mandatory two year mayoral terms, appointing a two year deputy mayor fails to recognise the potential pool of mayoral candidates who may benefit from an opportunity to serve as a deputy mayor for a shorter duration.

It is anticipated that the proposed LGA reform would, in concert with Direction 6, regulate the allowances payable to deputy mayors. In an era of constrained financial capacity, Council is also very concerned about a reform which mandates the appointment of a deputy mayor at potentially significant additional cost.

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Direction 9 proposes to:Consider deputy mayoral allowances in light of the expanded role of deputy mayors.Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is of the view that it is appropriate to review the formula for setting allowances to ensure they are calculated with reference to the duties, obligations and responsibilities imposed upon councillors in the discharge of their duties as elected representatives, including as deputy mayor.

Direction 10 proposes to:Require councillors to actively participate in engagement processes mandated by the Act.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is concerned about a prescriptive requirement upon councillors to "actively participate" on the basis that it fails to provide clear direction to councillors as to what level of participation will discharge their legislative obligation.

It is noted that Direction 46 would require Council to prepare a community consultation and engagement policy and Council is supportive of this reform direction having had such a policy in place for many years.

Council has prepared a carefully considered Communication and Engagement Strategy which outlines how Council will create genuine and transparent opportunities to enable community members to provide feedback about matters of interest to them through Council’s decision-forming process.

One size does not fit all when it comes to community engagement. Council is of the view that a well designed and implemented consultation plan are the critical components of effective engagement.

It is Council's view therefore that the mechanics of councillor participation in engagement activities should be left to each council to consider as part of their community consultation and engagement policy.

Not only does this respect the autonomy of individual councils to determine the processes and activities that are suited to the unique expectations and circumstances of their communities, but also to the unique circumstances of their councillors who are expected to "actively participate".

Direction 11 proposes to:Require councillors to recognise and support the role of the mayor specified in the Act.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Subject to Council's feedback as expressed elsewhere in this submission, Council is supportive of a requirement upon councillors to recognise and support the role of the mayor.

Council is equally of the view however that:

the mayor must recognise and support the councillors; and all councillors recognise and support the role of the Chief Executive Officer.

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Council is of the view that the principle underlying Direction 11 is appropriately addressed in the Councillor Code of Conduct.

The City of Boroondara's Code of Conduct for example, includes the following provisions:

We recognise the importance of appropriate and productive relationships and will strive to support and maintain these relationships as we work cooperatively to achieve Council's vision and mission

We acknowledge that the administration is accountable to Council through the Chief Executive Officer. …. We undertake to respect the functions of the Chief Executive Officer and to comply with the policies, practices and protocols defining appropriate arrangements for interaction between Council staff and councillors that the Chief Executive Officer can put in place under the Act.

We recognise that the mayor provides leadership of Council by virtue of the respect and authority the role is afforded by Council and councillors and note that the mayor shall take precedence at all municipal proceedings within the City as “first among equals”.

Council is therefore of the view that reform is unnecessary and that the principle underlying this Direction 11 can be adequately addressed by the Councillor Code of Conduct.

Direction 12 proposes to:Provide that councillors are entitled to all relevant entitlements consistent with other significant publicoffices (such as for disability support, maternity leave and childcare).

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council notes that notwithstanding provisions in the Act enabling the minister to prescribe resources and facilities for councillors (Section 75C), and types of councillor out-of-pocket expenses that must be reimbursed (Section 75B) no guidance has been provided with regard to mayor and councillor entitlements since the release of the Information Guide, Mayor and Councillor Entitlements, Reimbursement of Expenses and Provision of Resources and Facilities Support for Victorian Mayors and Councillors, November 2008.

Council also notes that any reforms regarding maternity / paternity leave need to be carefully considered. For example, in addition to providing a right to maternity / paternity leave, reforms must consider the practical implications that flow from a councillor being on extended leave, for example, on the calculation of quorums.

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Direction 13 proposes to:Require the CEO to provide support to the mayor by:

consulting the mayor when setting council agendaskeeping the mayor informed about progress implementing significant council decisions, includingreporting on implementation when asked to do soproviding information the mayor requires to meet the responsibilities of the roleinforming the mayor before making significant organisation changes that that affect the councilplansupporting the mayor in their leadership role (such as by ensuring adequate council resources andaccess to staff for the proper conduct of council meetings and for civic engagements).

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Reference should be made to Council’s response to Direction 5 to the extent that Direction 13 mirrors those proposed reforms.

It is also noted that the reform at Direction 13 is inconsistent with that at Direction 5, to the extent that Direction 13 contemplates consultation whereas Direction 5 contemplates “mutually set” agendas.

As noted in Council’s response to Direction 5, the Directions Paper rightly concludes "there should be a clear line of authority and accountability for implementing council decisions, providing advice and for conducting the operational business of council services". Presently, that line of authority is directly from the CEO to Council and many of these reforms blur the distinction between the role of elected representatives and the role of the administration.

It is again noted:

the mayor has no concurrent responsibility to consult with his/her colleagues regarding their expectations of the council agenda.

the mayor has no obligation to report information received from the CEO about progress implementing significant council decisions to her/his colleagues.

Additionally, it is questionable what action the mayor can take when in receipt of this information, when as previously highlighted, the mayor is also prohibited from responding to the CEO's advice in order to influence or change his/her decision of the CEO. To do so would be contrary to the prohibition in Section 76E of the current Act regarding improper direction and improper influence.

Council is of the view that enabling legislation could achieve the desired objectives without prescribing narrow powers to the mayor, or specific obligations on the CEO as proposed.

This could come in the form of guidance or direction as to the proper contents of:

The Councillor Code of Conduct; or Council’s rules concerning internal council processes that are consistent with high level

principles in the Act (Direction 19).

Council is supportive of adopting such an enabling approach, consistent with the autonomy of each council to consider and determine appropriate internal processes and controls according to its needs.

Consequently Council is of the view that it is entirely unnecessary to set out prescriptive powers for the mayor to require such reports when Council already has the power to do so, whether as part of its original decision, or in accordance with established policies and procedures set down for the administration to follow.

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Direction 14 proposes to:Require all councils to have a CEO remuneration policy that broadly aligns with the Remuneration Principlesof the Victorian Public Sector Commission's Policy on Executive Remuneration for Public Entities in the Broader Public Sector.

Do you support this direction? Yes No

What other comments would you make for this proposal?Council is supportive of the concept of a Remuneration Policy for the CEO.

Council is of the view however that the legislation need only prescribe a requirement that Council have a remuneration policy.

Certainly such policies may be informed by the Victorian Public Sector Commission's (VPSG) Policy on Executive Remuneration for Public Entities in the Broader Public Sector, however a prescriptive requirement that the Council policy “broadly align with the ” VPSG’s provides insufficient guidance or certainty to Council to ensure their policy complies with the Act.

Direction 15 proposes to:Require the audit and risk committee to monitor and report on a council’s performance against theremuneration policy.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?The reference to “remuneration policy” in direction 15 is understood to be to the CEO remuneration policy proposed in Direction 14.

Council notes from a technical perspective that the Audit Committee is an advisory committee to Council that commissions and receives reports but does not itself, conduct reviews. The Direction should be revised to provide that the Audit Committee shall monitor Council’s compliance with its CEO remuneration policy.

It is essential that the Act promote clear lines of accountability. The proposed reform should be supplemented to clarify that it is Council’s role alone to appoint the CEO and manage his/her performance; and that the Audit Committee has no role beyond reviewing Council’s adherence to the remuneration principles espoused by Council’s adopted remuneration policy.

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Direction 16 proposes to:Require the mayor to get independent advice in overseeing CEO recruitment, contractual arrangements andperformance monitoring.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?As previously indicated, Council is of the view that the Directions Paper rightly concludes "there should be a clear line of authority and accountability for implementing council decisions, providing advice and for conducting the operational business of council services".

It is not the mayor, but Council as a whole that is responsible for the appointment and management of the CEO. Accordingly, it is Council that should determine what advice it requires and from whom it should be obtained.

It is also noted that vesting power in the mayor to commission advice arguably offends the current prohibitions under the Act against councillors exercising delegated powers. Such powers should be exercised by Council, or an appropriate body established by Council for the purpose (i.e. a Special Committee with appropriately delegated powers).

Direction 17 proposes to:Remove detailed prescription about council decision making processes from the Act.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports the principle behind this reform, and the conclusion in the Draft Report that:

“the highly prescriptive nature of [current] arrangements is unnecessary for modern councils. It also impedes their ability to manage their affairs in a responsible and organised way and limits their ability to innovate and to improve how they engage with their communities and conduct meetings."

Direction 18 proposes to:Include high level principles about council decision making processes: namely, that they be open andaccountable.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports the principle behind this reform, subject to the principles being the subject of consultation with the sector.

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Direction 19 proposes to:Require councils to adopt rules about internal council processes that are consistent with the high levelprinciples in the Act.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports the principle behind this reform.

Direction 20 proposes to:Include in the new Act that a council may determine that information is confidential if:

it affects the security of the council, councillors or council staff


it would be privileged from production in legal proceedings

it would involve unreasonable disclosure of a person's personal affairs

it relates to trade secrets or would disadvantage a commercial undertaking.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?While Council is supportive of the proposed reform, Council fundamentally disagrees with the proposition set out in the Directions Paper that:

“..Councils should avoid dealing with matters in confidence unless exceptional circumstances absolutely require confidentiality”

This unequivocal statement fails to acknowledge that Council's interests can and should quite legitimately be protected by a capacity to make confidential decisions, or for public decisions to be informed by confidential material.

Like all commercial undertakings, including the Victorian and Federal governments, local governments hold a vast array of sensitive, and particularly commercially-sensitive information, for example in relation to plans for future development and a variety of procurement decisions.

Council respects and supports the principles of transparency and public accountability, a commitment reflected in the low percentage of decisions made by the City of Boroondara in meetings closed to the public. It is Council's view however that reforms to the Act, and the philosophical basis for them, must be cognisant of commercial and pragmatic reality.

As a public funded agency, Council must strive to achieve best value for its community and ratepayers. At times, this requires a prudent level of confidentiality. There are times for example, when Council’s ability to negotiate favourable contracts might be significantly undermined by the premature disclosure of commercial information.

At times, these circumstances might be exceptional, such as where Council is considering strategic land acquisitions (i.e. for public open space). At times, these circumstances may be very much more routine, such as when considering the award of contracts.

Reforms to the Act to promote public decision-making, should not be made, or justified, in a manner that de-legitimises or demonises the proper use of confidential decision-making powers.

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Notwithstanding the above, Council's is broadly supportive of the proposed grounds for determining confidentiality.

Council is of the view however that it is critical that:

the definition of a "commercial undertaking" include Council; and careful consideration be given to the definition of "personal affairs"

in order for the reforms to be workable.

Direction 21 proposes to:Require a committee to which a council may delegate any of its powers to be known as a special committeeand require it to include at least two members who are councillors.Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of the reform direction proposed.

There is further opportunity for reform however, taking into consideration those councils that convene special committees comprising all of their councillors.

Council is of the view that where a special committee is comprised solely of councillors, and all councillors of the municipality; that there should be fewer, if any limitations placed on the powers that can be delegated to that committee.

The City of Boroondara has in place two such committees. These committees provide alternative decision making forums which allow Council to better organise the business of its meetings. For example, Boroondara's Urban Planning Special Committee (UPSC) provides a focused forum for Council decision-making on planning matters under the Planning and Environment Act 1989.

Comprised of all 10 councillors, the UPSC operates according to the same meeting procedures as an ordinary Council meeting with one key exception; it allows community members in attendance to make a verbal submission to the committee before it makes its determination.

It is to some extent perverse that Boroondara's 10 councillors sitting as the Urban Planning Special Committee are limited to making recommendations to Council about planning scheme amendments for example. It is the very same 10 councillors who will make the final decision when sitting as Council at the next ordinary Council meeting.

While this proposed additional reform does increase the powers of special committees, it is noted that special committees can only exercise delegated powers. Council would therefore retain its prerogative to impose conditions and limitations upon special committees consistent with the primacy of ordinary Council meetings.

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Direction 22 proposes to:Allow councils to establish administrative committees to manage halls and reserves, with limited delegatedpowers including limits on expenditure and procurement; and for councils to approve annually committeerules that specify the roles and obligations of administrative committee members.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this direction.

Direction 23 proposes to:Apply legislative provisions exclusively to special committees that have delegated council powers and toadministrative committees (as described in the proposed direction above).

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this direction.

Direction 24 proposes to:Remove from the Act provisions regulating assemblies of councillors, leaving councils to deal with issues ofpublic transparency about these or any other advisory committees as part of the council's internal rules.Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this direction.

Direction 25 proposes to:Remove matters about employing council staff from the Act.Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this direction and believes specific issues on staff employment are otherwise dealt with under employment law.

Direction 26 proposes to:Require the CEO to establish a workforce plan that describes the council's staffing structure including futureneeds; that the plan include a requirement that it can only be changed in consultation with staff; and thatthe plan be available to the mayor and to staff.Do you support this direction? Yes NoWhat other comments would you make for this proposal?A staffing structure is not “static” and is always subject to external pressures and a constantly changing environment. Proposed changes should be a management prerogative and ultimately the CEO’s responsibility. It is not something that should be legislated and would simply add another restrictive burden on councils.

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Direction 27 proposes to:Require a council CEO to consult the staff if there is a major organisational restructure.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?This would provide yet another layer of bureaucracy and cuts across other legislation, namely the Fair Work Act. It is mandatory for enterprise agreements and all modern awards (including the Victorian Local Government Award 2015) to contain a consultation clause. Victorian Local Government enterprise agreements all have extensive consultation provisions.

Direction 28 proposes to:Require a community consultation process before making or varying a local law.Do you support this direction? Yes NoWhat other comments would you make for this proposal?Overall, Council is supportive of this direction.

Direction 29 proposes to:Include in the Act principles that local laws must meet and require that a council, after receiving advice froman appropriately qualified person, certify that the local law meets these principles.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Overall, Council does not support this direction.

If the objective of the certification process is to achieve consistency, Council is of the view the Victorian Government Solicitor would be the most appropriate body to certify local laws.

Local Laws made by the City of Boroondara are already reviewed by Council’s lawyers to ensure legislative compliance. Accordingly, if the Victorian Government seeks to impose an additional layer of certification, the associated costs should be borne by the government of the day.

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Direction 30 proposes to:Retain the power of the Governor in Council, on the recommendation of the minister, to revoke a local lawthat is inconsistent with the principles.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is generally supportive of this reform.

Council is of the view however that the reform should impose the same safeguards upon the exercise of ministerial powers of intervention as are imposed on Council's power to make local laws.

To this extent, Council is supportive of an amendment to Direction 30 that requires the minister "to receive advice from an appropriately qualified person" before making any recommendation to the Governor in Council. Council is of the view that the minister should additionally be required to consult with relevant council before making any recommendation to the Governor in Council.

Given the broad scope of local laws, Council notes it is imperative that the current drafting in Section 123 of the Act be retained, to the extent that a local law "may be revoked in whole or part".

Direction 31 proposes to:Note that model local laws may be issued as guidelines on various matters to achieve greater quality,consistency and scrutiny. These would be based on best practice local laws.Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is generally supportive of this reform.

Council is again of the view however that the reform should impose the same safeguards upon the exercise of ministerial powers to issue model local laws, as are imposed on Council's power to make local laws.

The Discussion Paper proposes, and Council supports, the retention of a requirement for community consultation before the making of local laws.

Council considers it is similarly appropriate that the minister be obliged to consult with local government and the community on the content of any model local laws before they are issued.

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Direction 32 proposes to:Consult to determine the appropriate value of a penalty unit for local laws and whether the value should beindexed annually.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?

With regard to the indexation of penalty units, Council notes the Victorian Government's position on automatic indexation of penalty units under the Monetary Units Act 2004, as set out the Victorian Government's Fees and Fines Fact Sheet 2016-17 (http://www.dtf.vic.gov.au/Publications/Victoria-Economy-publications/Fees-and-fines-fact-sheet),

"Each year, the Victorian Government automatically indexes many fees and fines to ensure that their original value is maintained. The indexation of fines ensures that penalties continue to discourage unlawful behaviour."

The $100 penalty unit for local laws was last fixed in 2004 by Section 110(2) of the Sentencing Act 1991. At the time (1 July 2004) the value of a penalty unit under the Monetary Units Act 2004 was $102.25.

Since then, the lack of indexation of local law penalty units has given rise to a significant disparity with the Monetary Units Act 2004, under which the value of a penalty unit effective 1 July 2016 is $155.46.

Council agrees with the Victorian Government's position with respect to automatic indexation of penalties and considers further consultation on this issue is unnecessary.

Councils and the community are familiar with the fixing of penalty units under the Monetary Units Act 2004 and Council considers the alignment of penalty units under local laws with penalty units prescribed under the Monetary Units Act 2004 to be the appropriate reform direction for the LGA.

Council is also supportive of further reforms regarding the maximum penalties permissible under local laws. The Local Government Act 1989 currently limits fines to 20 penalty units ($2,000) per offence under a local law. Council alternatively has the ability to prosecute an offender in the Magistrates Court, which may result in a conviction in addition to the fine. It is both costly and time-consuming to regularly prosecute alleged offenders in the Magistrates Court.

Council is of the view that the current $2,000 fine per offence is insufficient in some instances to act as a deterrent. For example, Boroondara has introduced a Tree Protection Local Law (the Local Law) that requires a permit be obtained for the removal of a canopy tree. Council’s experience to date is that magistrates are reluctant to convict offenders, even when found guilty, and that fines rarely exceed $2,000.

In light of land values and development profits in the municipality, a $2,000 fine appears to be considered by some as simply a (relatively low) cost of doing business.

The LGA reforms should significantly increase the maximum penalties permissible under local laws to ensure that local laws can appropriately punish transgression of community standards, as well as serve as a deterrent to the offender and others.

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Direction 33 proposes to:Remove the requirement to submit local laws to the minister.


Council is supportive of reforms that reduce "red tape" and if there is no benefit to the minister in receiving a copy of Council's local laws, Council is of course supportive of eliminating this unnecessary regulatory burden.

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Chapter 3: Democratic and representative councils

Direction 34 proposes to:Extend the band (currently 5–12) for the number of councillors per council to 5–15 and provide the ministerwith the power to increase the number of councillors per council within this band after receiving advice ofthe VEC.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of enabling provisions which provide capacity to increase in the number of councillors in a municipality.

Council notes of course that changes to councillor numbers and ward structures should only be made based on evidence that supports the view that communities are not being adequately represented by the existing number of councillors or the existing electoral structure. This is particularly so in a world where accessibility and communication are now much more defined in a digital context rather than traditional face to face interactions.

Council also notes that in an era of constrained financial capacity, the decision to increase the number of councillors attracts significant additional costs to communities and such costs warrant careful consideration against the anticipated benefits of change.

Direction 35 proposes to:Include in Regulations a formula for determining councillor numbers and require that the VEC consistentlyapply it. Base the formula on the ratio of councillors to residents, mediated by the geographic scale of thelocal government area, loading councillor numbers by one, two or three for geographically vast localgovernment areas.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Direction 35 fails to recognise that the calculation of councillor ratios necessarily involves a consideration of electoral structures and boundaries.

As noted with respect to Direction 34, in light of the interdependency between councillor numbers, ward boundaries and electoral structures, changes should only be made based on evidence that supports the view that communities are not being adequately represented by the existing structures and the existing number of councillors.

Council is not supportive of a reform that would see changes to councillor numbers made on a purely formulaic basis. Council could however, support a "presumptive" formula being prescribed, and used as an objective test to determine whether the number of councillors in a municipality warrants further investigation.

Council recognises the task of determining councillor numbers, ward boundaries and electoral structures as part of an Electoral Representation Review is not an easy one. Council is fundamentally opposed however, to reforms under the broad heading of "Democratic and Representative Councils", being selected on the basis of administrative convenience.

As the Discussion Paper highlights in Section 31, the VEC conducts electoral representative reviews that focus "(as the name indicates) on representation" and this is as it should be.

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A review of representation cannot be driven by a purely quantitative analysis of councillors per square metre or head of population to the detriment of other qualitative, geographic and financial factors which may be of equal if not greater relevance.

In addition, Council is of the opinion that the electoral representation review process should attach weight to the electoral structure already in existence. The question of structural change should only arise where there is a deficiency in representation, or where there is significant support for change from the community. Simply put - if it isn't broken, why fix it?

Council considers comprehensive community engagement be an essential precursor to any proposed change to councillor numbers or electoral structures and there was significant community interest and participation in Boroondara's last electoral representation review.

Notwithstanding Council's previously expressed concerns regarding the proposal to enshrine "deliberative community engagement" into the Act, as opposed to "community engagement" (refer comments at Direction 1 in particular) it is noted that Direction 35 is conspicuously lacking any element of community engagement despite the significant impact that a change in electoral representation can have on the community.

Direction 36 proposes to:Allow for one of two representative structures—unsubdivided or entirely uniform multi member wards—tobe applied in each municipality. (Option 1) orAllow for one of three representative structures—unsubdivided, entirely uniform multi member wards orentirely single member wards—to be applied in each municipality. (Option 2)

Initially this would require the VEC to conduct representation reviews to arrive at new council structures forthe first council elections after the Act is enacted.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council recognises that non-uniform electoral structures can generate anomalous election results and for this reason is supportive of a reform consistent with Option 2.

Council is strenuously opposed however, to Option 1.

The Discussion Paper at Section 3.2 states, with regard to the number of structures currently permissible under the Act:

"The strength of this range of possible structure is that it allows them to be adapted to suit local circumstances and to account for communities of interest"

It goes on the state:

"The literature on council electoral structures is inconclusive about the models that best support representative democracy and sound corporate governance, notwithstanding assertions that unsubdivided structures are better suited to corporate governance and single member wards to accountable representation."

In the absence of conclusive evidence that single member wards are an inferior model of representative democracy or corporate governance, it is inexplicable that the Directions Paper should propose to abolish them.

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As similarly noted with respect to Directions 34 and 35, changes to councillor numbers and electoral structures should be made on an evidential basis, not philosophical preference.

Additionally, changes should only be considered following consultation with affected communities that demonstrates those communities are not being adequately or satisfactorily represented as a consequence of the existing structure. If there is no deficiency in representation, significant support for the current electoral system (as was the case for Boroondara in the 2008 Electoral Representation Review) then there is simply no case for change.

The consultation undertaken as part of the Electoral Representation Review in Boroondara in 2008 resulted in unprecedented community involvement. It elicited a diverse range of arguments for and against the various structures and ultimately determined the best electoral structure suited to the communities of Boroondara, having regard to all relevant factors including the views of those communities.

Again, it is notable that Option 1 as proposed reflects a fundamental change in local democracy, but is conspicuously lacking any element of engagement with the very communities of interest that the new electoral structures are supposed to represent.

This is particularly concerning given other reforms (see particularly Direction 1) which support community engagement as a fundamental principle of the new Act.

Direction 37 proposes to:Subject to fixing councillor numbers by formula and reducing the range of representative structures, conductfuture electoral representation reviews by exception when the minister directs the VEC to conduct a reviewon the basis of:

evidence of a marked increase in population in a municipality

a request to the minister from a council or members of the community supported by evidence of theneed for a review

in response to a recommendation from the VEC

on any grounds determined by the minister published in the government gazette.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of the underlying principle that electoral representation reviews be conducted by exception.

Subject to fixing councillor numbers by formula

For the reasons set out in response to Directions 34-36, Council is opposed to a purely formulaic trigger for changing the number of elected councillors.

Council could however, support a "presumptive formula" being prescribed, and used as an objective test to determine whether the number of councillors in a municipality warrants further investigation as part of an Electoral Representation Review.

evidence of a marked increase in population in a municipality

It is noted that while subdivision reviews are not a panacea for all issues caused by population growth, they can address population shifts at significantly reduced cost compared to an electoral representation review.

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Given the significant cost to Council (and by definition the community) of conducting an electoral representation review, a "marked increase" in population is considered a poor definition to trigger a review.

Given the minister may direct a review be conducted on the basis of a recommendation from the VEC and population growth can be expected to feature prominently in any recommendation by the VEC, it seems unnecessary to include this as a stand-alone ground for ministerial intervention.

on any grounds determined by the minister published in the government gazette

The Victorian Electoral Commission is an independent statutory authority whose remit includes the conduct of elections, boundary reviews and electoral research.

In the absence of a request from a council or its community, the minister may always rely upon the independent, expert advice of the electoral commissioner in order to determine whether there is a need to conduct an electoral representation review.

Council therefore considers it unnecessary to include an unfettered power for the minister to prescribe additional grounds for an electoral representation review.

Alternative reform proposal

Council considers a more appropriate reform direction would be that the Act provide for the VEC to consider prescribed matters when determining whether an electoral representation review is warranted for a particular municipality.

The minister should then be obliged to consider the advice of the VEC before directing that a review be undertaken.

Direction 38 proposes to:Introduce partial preferential voting, consistent with Victorian Legislative Council elections, for multimember wards and unsubdivided elections, such that the voter is only required to mark the ballot paperwith the number of consecutive preferences for which there are vacancies to be filled.Do you support this direction? Yes NoWhat other comments would you make for this proposal?For the reasons set out in response to Directions 34-36, Council is opposed to a change in ballot-counting systems purely on the basis that it would facilitate the introduction of electoral structures selected on the basis of a philosophical preference.

The Discussion Paper justifies a change in ballot-counting systems because:

"It would allow for the more extensive application of unsubdivided municipalities without the risk of high informality rates."

The discussion paper does not advance any evidence to suggest that unsubdivided municipalities better support representative democracy or sound corporate governance. As such, the prospect of implementing more unsubdivided municipalities should not be used as a justification for reforms to ballot-counting systems.

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Direction 39 proposes to:Implement a countback method to fill casual vacancies between general elections by which all valid votescast at the general election would be counted, not just those of the vacating councillor (excluding the votesthat made up the quotas of the continuing councillors).


Council does not support this Direction. Casual vacancies should be filled by a by-election and not by a countback method.

Direction 40 proposes to:Consolidate all electoral provisions in a schedule to the Act, arranged according to the model provided bythe Electoral Act 2002; retain most provisions in the current electoral regulations; and retain proceduralmatters (such as prescribing forms and setting fees) in Regulations.


Council is generally supportive of this Direction.

Direction 41 proposes to:Make the entitlement to vote in a council election to be on the register of electors for the VictorianLegislative Assembly (the state roll) for an address in their municipality. Grandfather the voting entitlementof existing property franchise voters in that municipality. Institute compulsory voting for all enrolled voters.(Option 1) orMaintain the existing franchise but cease automatic enrolment of property owners and require these votersto apply to enrol for future council elections if they choose to do so. Institute compulsory voting for allenrolled voters. (Option 2)

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council recognises the clear advantages of a simpler voter franchise in local government elections and a more streamlined voter enrolment process. Council remains supportive of the voter franchise proposed by the Local Government Electoral Review Panel in 2013-14:

Eligibility voters are those aged 18 and above and either: - citizens or permanent residents living in the municipality, - owners of property in the municipality, - lessees of non-residential property in the municipality, or - those who pay rates on a property within the municipality.

A person may be enrolled only once in a municipality A corporation may nominate only one representative, who may be enrolled only once in a

municipality. Voting is compulsory for all those enrolled to vote including those over 70. Other than those already enrolled on the state roll, automatic enrolment for some voters

cease and that those voters not on the state roll be required to enrol on an applications-only basis.

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Council notes comprehensive transitional provisions would be required to ensure that a shift in the voter franchise does not disadvantage over 70s. The introduction of compulsory voting for residents aged 70 and over is of particular concern in Boroondara. According to the 2011 Census, Boroondara has the 6th highest number of residents aged 70 years and over and the highest number of residents aged 85 years and over out of all the 79 Victorian local governments. While the change in the voter franchise is intended to promote equity, Council is concerned voters over 70 may be inequitably penalised if they are not appropriately informed of the change to compulsory voting.

This position is closely aligned with Option 2 as set out in the Directions Paper.

Direction 42 proposes to:Require the VEC to revise the candidate's nomination form to require candidates to explicitly state that nodisqualification conditions apply to them.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is generally supportive of this Direction.

Direction 43 proposes to:Require a council CEO to complete a police check and a check of the Australian Securities & InvestmentsCommission (ASIC) register of persons disqualified under the Corporations Act 2001 for elected candidateswithin three months after the general election. (Option 1) orRequire each candidate to submit a completed ASIC and police check when nominating. (Option 2)

Do you support this direction? Yes NoWhat other comments would you make for this proposal?With regard to Option 1, Council is concerned that conducting police checks and ASIC checks after candidates are elected councillors is akin to closing the gate after the horse has bolted.

While it is acknowledged that the timeframes in the proposed reform Option 1 would not delay the swearing-in of councillors, the objective of this reform should be as much to prevent ineligible councillors from taking part in and affecting the outcome of an election as it is to prevent them continuing to hold office.

Council is therefore opposed to Option 1 and would instead support Option 2, requiring candidates to submit completed checks at the time of nomination.

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Direction 44 proposes to:Require adoption of a uniform voting method for council elections as determined by the minister afterreceiving advice from the VEC. Have the minister publish the method to be used in the government gazette12 months before the general elections.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council acknowledges there are different views regarding the merits of postal voting and attendance voting.

Council remains of the view however that it is preferable to have consistency across local government with respect to the voting method, as suggested by the Local Government Electoral Review Panel in 2013-14 and would be supportive of a reform proposing uniform postal voting.

Council is not however, supportive of Direction 44 as presented on the basis that the uniform voting method is to be determined at the discretion of the minister with only 12 months' notice to councils and more importantly, to the community.

The Directions Paper justifies the change on the grounds it will facilitate the adoption of as yet unknown advancements in voting technology.

One of the essential ingredients of any democratic system is public confidence in the voting system employed.

There are significant risks associated with the loss of confidence in the voting system and these risks are not necessarily quarantined by jurisdiction or level of government. For example, the irregularities discovered in Western Australia in 2013 by the Australian Electoral Commission have had significant repercussions for Federal, State and Local Government elections held since.

As local government elections are conducted by the VEC, any issues associated with new technology deployed at Council elections can be expected to influence the confidence Victorians have in their electoral commission for future Local Government and Victorian Government elections.

As such, Council is of the view that the decision to deploy new technology is significant enough to warrant consideration by the Victorian Parliament by way of legislative amendment.

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Chapter 4: Councils, communities and participatory democracy

Direction 45 proposes to:Include deliberative community engagement as a principle in the Act and include in the role of a councillorthe requirement to participate in deliberative community engagement, leaving the method to bedetermined by each council.


What other comments would you make for this proposal?As set out in response to Direction 1, Council has some reservations about enshrining "deliberative community engagement" as opposed to "community engagement" as a principle in the LGA.

As previously indicated, Council would be supportive of an amended principle reflecting the "need for appropriate and effective community engagement processes".

It is noted in this regard that Direction 46 proposes to require council prepare a community consultation and engagement policy. Council is generally supportive of this reform having had such a policy in place for many years.

Council's carefully considered Communication and Engagement Strategy outlines how Council will create genuine and transparent opportunities to enable community members to provide feedback about matters of interest to them through Council’s decision-forming process.

With a strong policy framework designed to assist Council to select of the appropriate level of participation (with particular reference to the IAP2 spectrum) it is Council's view that the overarching principles adopted in the LGA should not be mis-understood to push all Council’s engagement activities toward “deliberative engagement” at the “collaborate” and “empower” levels in the spectrum.

Additionally, as noted in Council's response to Direction 10, one size does not fit all when it comes to community engagement. Council is of the view that a comprehensive Communication and Engagement Strategy will support well designed and implemented consultation plans which are the critical component of effective engagement.

In this context, a prescriptive approach to the role of a councillor requiring councillors to meet the poorly prescribed standard of "active participation" is considered unnecessary.

A more appropriate reform direction would be to: - Adopt an amended principle that reflects the "need for appropriate and effective community

engagement processes". - Require councils to prepare a community consultation and engagement policy to inform its

community engagement activities generally, rather than the present, narrow focus on the council plan and community plan.

- Require council's consultation and engagement policy to include appropriate consideration of the role of mayors and councillors in consultation and engagement activities.

As set in response to Direction 1, should the Victorian Government proceed with the principle in its current form, the government will also need to further define “deliberative engagement processes” and the principles that underpin such processes.

The additional principles must be clear to council staff and community participants alike, enabling a practicable approach to consultation to be planned and delivered with clear expectations on all sides. These underlying principles will also need to be sufficiently pragmatic that councils can approach all consultation in a manner which is sensitive to the context of each issue and the local community interests.

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Direction 46 proposes to:Require a council to prepare a community consultation and engagement policy early in its term to inform thefour year council plan and ten year community plan.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?As foreshadowed in Council's response to Directions 5, 10 and 45, Council is generally supportive of this reform having had such a policy in place for many years.

Notably, Council's Communication and Engagement Strategy is not restricted in its application to the council plan and community plan. Council's carefully considered Strategy outlines how Council will create genuine and transparent opportunities to enable community members to provide feedback about all matters of interest to them through Council’s decision-forming process.

As previously expressed, Council is also fundamentally of the view that the LGA reforms should respect and promote the autonomy of councils to make decisions with regard to its particular circumstances and the best interests of its community.

Accordingly, Council is also of the view that the role of mayors and councillors in the various consultation and engagement activities of each council, is more appropriately determined within the confines of each council's community consultation and engagement policy, than by prescriptive legislation.

Council would therefore be supportive of a revised Direction 46, that requires the council's community consultation and engagement policy to:

a) Be of broader application than just the council plan and community plan b) To set out the role of mayors and councillors in consultation and engagement activities.

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Direction 47 proposes to:Require a council to conduct a deliberative community engagement process to prepare its council plan andto demonstrate how the plan reflects the outcomes of the community engagement process.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council reiterates its comments regarding the distinction between "community engagement" and "deliberative community engagement" as set out in response to Directions 1, 2, 35 and 45.

Council also reiterates that reforms to the LGA should respect and promote the autonomy of Councils.

As proposed at Direction 46, Council is of the view that the appropriate mechanism to determine the best consultation and engagement strategy for each council, is each council's own adopted community consultation and engagement policy.

Council also notes as previously stated at Directions 1 and 45, that should the Victorian Government proceed with the principle in its current form, the Government will also need to further define “deliberative engagement processes” and the principles that underpin such processes.

Direction 48 proposes to:Include in regulations that an engagement strategy must ensure:


the community is given adequate information to participate

the scope/remit of the consultation and areas subject to influence are clear

those engaged are representative of the council's demographic profile.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is generally supportive of regulations outlining the minimum contents that must be covered by each council's community consultation and engagement policy, rather than prescriptive standards within the LGA.

In particular, as foreshadowed at Direction 45, Council is of the view that the regulations regarding councils communication and engagement strategies should require the strategies to

a) Be of broader application than just the council plan and community plan b) To set out the role of mayors and councillors in consultation and engagement activities.

In this context, some refinement is required to the matters proposed for the regulations:


the scope/remit of the consultation and areas subject to influence are clear

Council notes that these two principles are somewhat at odds.

In the context of a policy applicable to a broad range of community engagement activities, as is supported by Council, it is important to recognise that community engagement is not a 'one size fits all' process.

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Boroondara's current policy references the IAP2 Public Participation Spectrum. This assists in the selection of a level of participation that defines the public's role in any community engagement program. The policy notes this must be done with proper regard to the context of local government, where decisions are ultimately made by councillors as the elected representatives of community.

At times, Council may choose a level of participation at the "inform" end of the IPA2 spectrum that may not be to the community's preference. It is noted under Direction 1 however, that community engagement is one of 8 principles Council should take into account when performing their functions and exercising their powers. Consultation at the "inform" end of the IAP2 spectrum clearly indicates minimal scope for community influence, which may be entirely appropriate taking into account for example, the need for transparency and accountability, the principles of sound financial management and the plans and policies of the Victorian Government.

Council would be supportive a combined version of these principles, that encourage a rigorous approach to the selection of engagement processes. The resultant principle should reflect the fundamental requirement that processes are designed to meet the particular needs of stakeholders, clearly define their roles and maximise participation taking into account the purpose and scope of the engagement activity.

those engaged are representative of the council's demographic profile

Council is supportive of this principle in the context of a policy applicable only to the council plan and community plan. As Council is supportive of a policy of broader application, Council is of the view that consideration should be given to a more layered definition of the target audience of consultation and engagement.

Council's current policy similarly targets processes that encourage views from "a representative cross section of the community" for all consultation. It also recognises a key step in planning for community engagement is to clearly identify stakeholders.

Where whole of council activities might target a representative sample of Council's demographic profile, a more targeted activity regarding libraries might be legitimately designed to target a representative sample of library users.

Council is also concerned that the regulations not create unreasonable expectations of councils.

As the well-known saying goes, "you can lead a horse to water, but you cannot make it drink". Council can plan and design activities that target or invite a representative sample of the Boroondara community to participate in an engagement activity, but Council cannot "ensure" they are engaged.

Direction 49 proposes to:Require a council to complete its council plan by 31 December in the second year of its term, recognising thetime required to conduct a deliberative community engagement process.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Refer to Council's response at Direction 82.

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Direction 50 proposes to:Require the mayor to report to the community each year about how the council plan has implemented thecommunity’s priorities as directed through the deliberative community engagement process.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Direction 98 proposes that the LGA "continue to require a council to include information in its annual report of operations about achievements against its council plan, community plan, financial plan, asset plan and budget."

In the context of Direction 98, which Council supports, an additional duty on the mayor to report to the community is unnecessary.

The council plan and annual report are two of the most significant documents produced by Council and mayor and councillor engagement with the community on both the council plan and annual report is quite simply, business as usual.

Direction 51 proposes to:Require a council to publish on its website all documents and registers currently required to be kept oncouncil premises and ensure this information is accessible to the public.


What other comments would you make for this proposal?

Councils are required to maintain a variety of public registers under a variety of Acts. These include for example, registers covering planning permits, building permits and registered animals.

The proposed reform is unclear in its application to registers maintained in accordance with other Acts or regulations and the following comments are based on consideration of registers maintained under the LGA.

Register of Primary and Ordinary Returns Council respects and supports the principles of transparency and public accountability, however Council is also committed to protecting privacy, in accordance with Council's obligations under the Privacy and Data Protection Act 2014.

While much of the data maintained on local government registers does not attract significant privacy concerns, the register of primary and ordinary returns does.

The register of primary and ordinary returns contains a record of all councillors, senior officers and nominated officers' property interests within the municipality or an adjoining municipality. In most instances, these properties will be the councillors and staff members' residential addresses.

Under the current regime, while this information is publically available it must be inspected at Council offices and a record is kept of those who have inspected the records. Council is of the view that this appropriately weighs the public interest in transparency and accountability against the private interests of councillors and staff.

Mandating that this information be made available on the internet has no precedent in the Victorian public sector.

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Indeed, even with regard to the Parliament's own Register of Members Interests, the Victorian Parliamentary website specifically states

"The full residential addresses of Members are not shown in the register for privacy reasons."

To require Local Government staff and councillors to publically disclose their residential addresses is already inconsistent with the practice of Victorian parliamentarians and public sector staff. The proposed reform extends this inconsistency by making this information more readily, and in effect perpetually, available by requiring it to be published on council websites.

The proposed reform is not supported by an analysis of the evident privacy issues, or justification as to why the public interest in making this information more accessible outweighs the private interests of the councillors and staff concerned.

Council is therefore of the view that as a minimum, the material required to be published pursuant to Direction 51 should be subject to exemptions to appropriately protect the privacy of councillors and staff. Those exemptions should be determined according to a rigorous Privacy Impact Assessment process, taking into consideration the views of those staff and councillors affected by the interference with their privacy.

"Red Tape" reduction According to the Department of Treasury and Finance website:

"Regulation can be important in protecting people and in protecting the public interest. Most regulation has that intention. However, poorly designed regulation and inefficient implementation can also:

make it more difficult to do business; require people to do unnecessary and costly things, in some cases for several

regulators; and waste people's time – things take unreasonably long."

The costs of regulatory compliance can be significant and in Council's experience, there was little to no demand to inspect the array of registers maintained under the preceding regulations.

Council is therefore concerned that while the City of Melbourne has been lauded for their practice of making statutory and voluntary registers available online, despite the ready availability of web analytics, no evidence has been provided to demonstrate that these registers are responding to community demand, need or expectation.

Council welcomed the significant reduction in registers required to be maintained by local government under Regulation 12 of the Local Government (General) Regulations 2015.

Council would welcome a further review, informed by broad community consultation, into the actual public interest in those public registers that are proposed to be retained in the LGA.

Application of Freedom of Information Act 1982

Section 14 of the Freedom of Information Act 1982 (FOIA) provides that a person is not entitled to obtain access under FOI to documents:

"open to public access, as part of a public register or otherwise, in accordance with another enactment, where that access is subject to a fee or other charge"

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If a council has not prescribed a fee under Section 222, documents available for public inspection may need to be considered as part of an FOI request and this can create anomalous outcomes.

Many registers contain personal affairs within the meaning of the FOIA. While disclosure may be reasonable under the FOIA, such disclosure would require affected individuals to be notified and afforded an opportunity to appeal council's decision.

Council is of the view that consideration should be given to:

Amending the LGA such that prescribed information available for inspection on council's website or at council offices is not subject to the FOIA; or Amending the FOIA to provide that the FOIA does not apply to prescribed information available for free.

Direction 52 proposes to:Require a council to publish its CEO remuneration policy on its website.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this Direction.

Direction 53 proposes to:Regulate for minimum standards and include in guidelines best practice processes for ensuring transparencyand accountability in council operations and administration, basing the guidelines on current Melbourne CityCouncil practices.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?As foreshadowed under Direction 51, Council is concerned that the disclosure practices of the City of Melbourne are to be adopted without any evidence demonstrating that their publication of statutory and voluntary registers online responds to community demand, need or expectation.

The regulatory burden of maintaining public registers is not insignificant and Council is of the view that the City of Melbourne approach should not be arbitrarily deemed best practice without first identifying community needs and expectations in order to conduct a proper cost-benefit analysis.

Having regard to the importance placed on community consultation through the proposed reforms, Council would support a requirement that any ministerial guidelines and best practice processes be informed by broad community consultation. This will ensure that information published by local governments is responsive to community needs and avoid unnecessary compliance costs.

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Direction 54 proposes to:Include in the Act a definition of a customer complaint consistent with the Ombudsman's recommendationof as it an 'expression of dissatisfaction with the quality of an action taken, decision made or serviceprovided by a council or its contractor or a delay or failure in providing a service, taking an action or makinga decision by a council or its contractor, but with the addition that the customer has been directly affectedby the action.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council acknowledges the merits of a uniform approach to the definition of a complaint.

Direction 55 proposes to:Require a council to develop a policy about customer complaints that includes a process for dealing withcustomer complaints, and that the process contain an avenue for independent review that is clearlyaccessible to the public. Policy and statutory decisions of the council would not be subject to the complaintspolicy.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council acknowledges the merits of each council adopting a customer complaints policy. Council is however of the view that clarification is required regarding the availability of reviews.

The wording of the Direction 55 suggests an "independent review" which is not clear and may create unreasonable expectations.

Council is of the view that clarification should be provided to ensure that the reform requires council to established processes for "internal reviews" noting that those internal reviews must be "independent of the original decision maker".

Council is supportive of the exclusions proposed, noting that many council decisions or processes are subject to separate statutory or other legislative appeal processes and these should not be usurped or duplicated by internal review mechanisms.

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Chapter 5: Strong probity in council performance

Direction 56 proposes to:Incorporate the current councillor conduct framework largely unamended in the Act, including:

the definitions

the principal requirements imposed on councils and councillors, relevant statutory officers, principalcouncillor conduct registrars

the role and powers of the minister and ministerial monitors and the Chief Municipal Inspector(CMI).

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports this Direction.

Direction 57 proposes to:Include in Regulations all the processes specified in the current councillor conduct framework.


Direction 58 proposes to:Extend the offence of release of confidential information to council staff who unlawfully disclose confidentialinformation.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Disclosure of confidential information is generally addressed in a council’s Staff Code of Conduct. Whether or not disclosure of confidential information should be unlawful and liable to criminal prosecution is a matter for each council to consider its position on. What constituted a “serious disclosure” would need to be clearly defined.

Council is generally supportive of this reform, while mindful of the risks of unintended consequences.

There are many conceivable circumstances where council staff are required to disclose confidential information in order to implement a decision of council and the provisions of the Act.

For example, a council decision to acquire a property might be made in a closed meeting in order to protect the strategic and commercial interests of council. In such circumstances, Boroondara has in the past appointed a buyer's advocate to confidentially represent Council.

Clearly council officers would need to instruct the advocate in accordance with council's decision. The reforms to the Act would need to countenance such situations and ensure staff can implement council's decisions without being in breach of their confidentiality obligations.

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Direction 59 proposes to:This will make councillors and council staff liable to criminal prosecution for more serious disclosures andliable to disciplinary action—councillors for serious misconduct through the councillor conduct panel processand council staff under their contract of employment—for less serious breaches.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this reform, subject to the concerns outlined under Direction 58.

Direction 60 proposes to:Provide that a conflict of interest exists where:

the councillor or a person with whom they are closely associated stands to gain a benefit or suffer aloss depending on the outcome of the decision (a 'material conflict of interest')

the councillor has, or could reasonably be taken to have, a conflict between their personal interestsand the public interest that could result in a decision contrary to the public interest.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?It is noted that dot point 1 is derived from the South Australian Local Government 1999 (the SA LGA) and dot point two is derived from Queensland's Local Government Act 2009 (the QLGA).

Council shares the view expressed in the Directions Paper that that the current conflict of interest regime can be complex and confusing for councillors, and that the Act would benefit from significantly simplified conflict of interest framework.

It is noted the SA LGA clearly establishes those persons who would be regarded as "closely associated" and council is supportive of the reform in dot point 1, subject to subject to inclusion of a definition of persons who are "closely associated" with a councillor.

Council also notes there are several exemptions in the SA LGA and the QLGA which would be appropriate for inclusion in the Victorian reforms.

Direction 61 proposes to:Make a breach of conflict of interest subject to disciplinary action for serious misconduct through acouncillor conduct panel, at the discretion of the CMI. The maximum penalty a councillor conduct panel canimpose for serious misconduct is six month suspension from office and loss of a councillor allowance for thatperiod.


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Direction 62 proposes to:Retain the capacity to prosecute a person in court for a conflict of interest breach when it involves failure todisclose a 'material conflict of interest'. This is a criminal offence with a maximum fine of 120 penalty unitsand an associated disqualification from being a councillor for eight years.


Direction 63 proposes to:Retain the current legislative provision on misuse of position.


Direction 64 proposes to:Retain the current legislative provisions on improper direction, noting they will be supported by the furtherlegislative measures to clarify the roles and responsibilities of councillors, mayors and CEOs set out inChapter 2 of this paper.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council's comments regarding improper direction at Directions 5 and 13 are reiterated.

The discussion paper notes that "councillors often do not understand the strict delineation of responsibilities between the CEO … and councillors …".

It is Council's views that endeavours to "strengthen the leadership of mayors" as set out in Chapter 2 of the Directions Paper have established mayoral powers and duties that do not reinforce the strict delineation of powers. Indeed, the powers given the mayor may in fact tend to encourage the improper direction or undue influence of the Chief Executive Officer in particular.

At Direction 5, it is proposed to expand the role of the mayor to include the following powers and responsibilities:

to mutually set council meeting agendas with the CEO to be informed by the CEO before the CEO undertakes any significant organisational

restructuring that affects the council plan

At Direction 13, the CEO is proposed to be required to provide support to the mayor by:

consulting the mayor when setting council agendas informing the mayor before making significant organisation changes that that affect the

council plan

These provisions do not clearly establish the reason why a mayor specifically (as opposed to council) needs to be advised by the CEO for example, about a proposed organisational restructure. It remains unclear therefore whether the mayor, in receipt of this information, could properly seek to change, influence, or prevent the CEO from implementing the proposed changes.

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Similarly, the mayor must either be "consulted" about the council agenda at Direction 13, or is responsible for "mutually setting" the agenda at Direction 5. It is unclear whether the mayor may properly direct the CEO as to what must, or must not, be placed on the agenda for a council meeting.

Notwithstanding the above, Council is of the view that the current provisions regarding improper influence and direction should be retained.

Direction 65 proposes to:Retain the current enforcement role, functions and powers of the CMI and the inspectorate.


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Chapter 6: Ministerial oversight of councils

Direction 66 proposes to:Include in the Act principles to apply to a proposal to create a new municipality, that:


the allocation of revenues and expenditures between municipalities being separated shall beequitable for the residents of each municipality

the views of the communities affected by the restructuring shall be taken into consideration

each new municipality shall have sufficient financial capacity to provide its community with acomprehensive range of municipal services and to undertake necessary infrastructure investmentand renewal.


Direction 67 proposes to:Other than the proposed direction above, retain the current provisions (in Part 10A) about altering externalmunicipal boundaries.


Direction 68 proposes to:Retain the power of the minister to:


issue a governance direction to a council, noting that other powers of the minister to direct councils(such as the power to direct a council to submit financial statements under section 135) be includedin this general power



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Direction 69 proposes to:Empower the minister to recommend that a councillor be suspended by an order in council where thecouncillor is contributing to or causing serious governance failures at a council. This power to only beexercisable in exceptional circumstances in that:

the councillor has caused or substantially contributed to a breach of the Act or Regulations by thecouncil or to a failure by the council to deliver good government and

a council (by resolution), a municipal monitor, the CMI, the Ombudsman or the Independent Broadbased Anti corruption Commission have recommended that the minister suspend the councillor onthese grounds and

the council, the municipal monitor, the CMI, the Ombudsman or the Independent Broad based Anticorruption Commission have satisfied the minister that the councillor has been provided withdetailed reasons for the recommendation and was given an opportunity to respond to theirrecommendation and

the minister is satisfied that if the councillor is not suspended that there is an unreasonable risk thatthe council will continue to breach the Act or continue to be unable to provide good government forits constituents.


Direction 70 proposes to:Retain the provisions in the Act about the suspension and dismissal of a council in their current form,including the provisions allowing appointment of administrators.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council notes there is a significant disparity in the six cases identified in the Discussion Paper, and a concerning trend towards increasing periods of administration, in place of democratically elected councils.

At the Cities of Darebin, Nillumbik and Glen Eira, the period of administration was mere months. In contrast at the Rural City of Wangaratta, the administration period will be three years with a democratically elected council returning in October 2016 according to the normal electoral cycle.

This stands in stark contrast to the City of Brimbank, where elections were not held in 2012 despite three years of administration. The City will have been without elected representatives for seven years when it goes to the polls in October 2016.

Similarly, and most recently, the City of Geelong was to be without elected representatives for five years, until the Local Government (Greater Geelong City Council) Bill 2016 was amended to require elections after 18 months.

Council accepts that there are times, regrettably, when governance failures may necessitate drastic intervention. Good local governance however is underpinned by democratically elected local representatives who are directly accountable to their community.

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Council is of the view therefore that where drastic intervention is required, there should be a presumptive provision that the period of administration should extend only as far as the next scheduled election.

Of course, it is important that administrators have the necessary opportunity to address the underlying causes of any governance failure. As such, it would be appropriate that the presumption apply unless the municipal monitor, the CMI, the Ombudsman or the Independent Broad-based Anti-corruption Commission have satisfied the minister that there are compelling reasons for administration to extend beyond the next scheduled general election.

Direction 71 proposes to:Streamline the minister's power to conduct inquiries into councils into a single power to appointcommissions of inquiry consisting of one or more commissioners to inquire into and make recommendationsto the minister about any matter as requested by the minister. This will include, but not be limited to:

governance issues

financial probity issues

disputes between councils and between councils and other parties.


Direction 72 proposes to:Retain the existing power to forbid a council from employing a new CEO or entering into a new contract withan existing CEO but amend the power to provide that it can only be exercised on the recommendation of amunicipal monitor or the CMI.


Direction 73 proposes to:Remove the power relating to senior officers from the new Act as all staff employment matters should bedealt with by relevant employment laws.


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Direction 74 proposes to:Bring all provisions (and all other elements) of the Fair Go Rates System into the new Act consistent with thelegislative hierarchy in Chapter 10.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of the principle of a systematic legislative hierarchy and reducing the complexity of legislation by rationalising the different pieces of legislation that apply to local government into one Act.

Notwithstanding, Council remains fundamentally opposed to the current Fair Go Rates System and notes there has been consistent and persistent opposition across the sector.

While Council acknowledges the need to keep rates affordable, Council is disappointed that the Victorian Government has imposed a cap on the annual increase in rate revenue that councils can generate.

The increase has been capped to the Consumer Price Index (CPI) forecast, which for the 2016-17 year is 2.5 percent. The Government's own advisor, the Essential Services Commission (ESC), agreed with councils’ view that a rate cap based on CPI alone is not sustainable.

While Boroondara's prudent management means that Council can accommodate rate capping without cutting services in the medium term, the policy will inevitably have impacts on services and infrastructure in the longer term.

Rate capping creates uncertainty around future rate revenue for councils. It is at odds with the proposed reforms regarding long term planning which will rely on details of rate caps that are announced in December annually, or assumptions that the ESC will agree to variations. The lack of certainty regarding future funding capacity will also have significant impacts on Council's ability to be responsive to community consultation, deliberative or otherwise.

Direction 75 proposes to:Retain the general power for the minister to recommend regulations to give effect to the Act and empowerthe minister to relieve a council of requirements to follow processes set out in Regulations.


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Direction 76 proposes to:Empower the minister to issue non regulatory guidelines on any matter under the Act.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of the principle behind the power to issue non-regulatory guidelines, to the extent that they are clearly understood by the minister, the sector, and the community to be guidance.

Council also notes that while non-regulatory guidelines may be administratively easy to issue, they may nonetheless impose a significant administrative cost upon Council. For example the Local Government Performance Reporting Framework (LGPRF) has introduced a significant reporting burden on local governments. The guidelines for the LGPRF have been revised numerous times, requiring significant changes to Council's data collection activities to ensure continued compliance with Council's obligations at some cost.

Given the absence of any requirement to conduct a regulatory impact statement before issuing non-regulatory guidelines, Council is of the view that the minister's power should be conditional upon prior engagement with the sector, consistent with the principles of community engagement, a recurrent theme within the proposed reforms.

Direction 77 proposes to:Remove the requirement to request ministerial exemption from public tenders, as explained in Chapter 8.


Direction 78 proposes to:Remove the power requiring a contract for a senior officer: all employment matters for council staff will nowbe subject to employment law.


Direction 79 proposes to:Explore an alternative method for handling instances of a majority of councillors having a conflict of interestpreventing them voting on a planning scheme amendment.


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Chapter 7: Integrated planning

Direction 80 proposes to:Include an integrated strategic planning and reporting framework in the Act that identifies the four yearcouncil plan as a council's central strategic planning instrument, and also requires long term (10 year)plans—being a community plan, financial plan and asset plan—and short term (1 year) reportingdocuments—being the budget and annual report (containing all performance reporting).


Direction 81 proposes to:Include in Regulations and guidelines details about the information a council will include in each plan.


Direction 82 proposes to:Require:

a council to prepare and adopt a four year council plan by 31 December of the second year after ageneral election

preparation of the council plan to be informed by the deliberative community engagement processdescribed in Chapter 4

the council plan to include information about services, infrastructure and amenity priorities for thecouncil term.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of community consultation being a key principle of the reformed Act, however reiterates the comments made regarding the distinction between "community engagement" and "deliberative community engagement" as set out in response to Directions 1, 2, 35, 45, 47, and 49.

Council also notes the reference to priorities "for the council term" should be deleted as this reform places the four year council plan out of phase with the council term.

While Council welcomes the additional time available post-election for Council to develop a four year council plan, the timelines for preparing the plan and subsequently reporting to it are unclear.

The first dot point above suggests a four year plan be adopted by "31 December of the second year after a general election". This could be read as 31 December 2018, following the elections in 2016. The indicative timeline in the Directions Paper (Figure 3 at 7.2) indicates however that the council plan would be adopted by 31 December 2017, being "31 December the year after a general election".

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Clarification is required that the reform is proposing a period of 13 months to be set aside for a new council plan to be prepared (e.g. November 2016 to December 2017).

Direction 80 and other references throughout the Directions Paper clearly anticipate financial year reporting against the council plan in the annual report. The timeline for adopting the annual report in December however, makes it unclear whether the council plan is to be aligned to a calendar or financial year.

Certainly, the indicative timeline in the Directions Paper suggests councils will be reporting to the community about the council plan in November / December each year which is of concern to Council.

Like most organisations, Boroondara has structured quarterly reporting frameworks aligned to the financial year. With the existing Local Government Performance Reporting Framework already having added a significant administrative and cost burden upon councils, Council would be strenuously opposed to the introduction of a "council plan reporting cycle" ending in November / December each year. This is particularly so if council plan reporting is to be duplicated in the annual report.

The overlapping annual report and council plan years that would eventuate from a council plan cycle tied to calendar years are demonstrated in Diagram 1 (attached).

As demonstrated in Diagram 2 (attached) a council plan cycle tied to financial years will align reporting with the annual report, but will extend the period for which Council is without a council plan by 6 months in the transition phase.

Council is of the view that reforms should provide certainty that:

the operational period for council plans is four years commencing in July, the second year after a general election (that is, 19 months after the election).

The reporting cycle for council plans is financial year based, via the annual report, consistent with Direction 98.

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Diagram 1: Calendar Year Council Plan prepared by 31 December 2017

Diagram 2: Financial Year Council Plan prepared by 30 June 2018

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Direction 83 proposes to:Remove the requirement to submit a copy of the council plan to the minister and replace it with arequirement to publish it on the council website and to have the mayor report annually to the community onthe achievement of the council plan.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of reforms that reduce "red tape" and if there is no benefit to the minister in receiving a copy of the council plan, Council is of course supportive of eliminating unnecessary regulatory burden.

As set out in response to Directions 5, 50 and 82, Council is also supportive of the reform set out in Direction 98 which proposes to continue to require a council to include information in its annual report of operations about achievements against its council plan, community plan, financial plan, asset plan and budget.

The mayor's key role communicating the contents of the annual report to the community is quite simply, business as usual. Council therefore considers it unnecessary and overly prescriptive, to introduce a duty in the Act for the mayor to report Council's achievement of the council plan to the community.

To the extent that any council considers it necessary to prescribe the mayor's role in such detail, Council is of the view that the appropriate mechanism is council's community consultation and engagement policy.

Direction 84 proposes to:Require a council to prepare and adopt a rolling community plan of at least 10 years by 31 December of thesecond year after a general election to guide strategic planning and inform the preparation of the councilplan. Require preparation of the community plan to be informed by the deliberative community engagementprocess that also underpins the council plan.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports the introduction of an integrated planning framework and acknowledges this should be underpinned by extensive community consultation.

Local governments should develop their own community consultation and engagement policies in accordance with Direction 46 however, and the LGA reforms should not prescriptively push council’s engagement activities toward “deliberative engagement” at the “collaborate” and “empower” levels in the IAP2 spectrum.

One size does not fit all when it comes to community engagement and Council reiterates its comments regarding the development of community consultation policies at Direct 46 and regarding the distinction between "community engagement" and "deliberative community engagement" as set out in response to Directions 1, 2, 35, 45, 47, and 49.

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Direction 85 proposes to:Set out in Regulations and guidelines what is to be included in the community plan, including a communityvision statement.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports the introduction of an integrated planning framework and acknowledges this should be underpinned by extensive community consultation.

Council is also supportive of the principle of regulations and guidelines informing the contents of the 10 year community plan, noting of course these must allow councils sufficient flexibility to accommodate the outcomes of the consultation that informs them.

Direction 86 proposes to:Require all councils to prepare and adopt a rolling financial plan of at least ten years by 31 December of thesecond year after a general election, in accordance with the principles of sound financial management, andfor council to review and approve this plan annually.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council reiterates the concerns expressed at Direction 82, that while the Directions Paper proposes an integrated planning framework, there is no clarity to give assurance that the planning or reporting cycle will be cohesive or integrated.

It is incongruous that Council should adopt a 10 year financial plan in December, out of phase with its financial year budgets. Direction 86 is also unclear as to whether annual reporting is envisaged as part of the annual report.

Clarity is also required regarding the timing of the first 10 year plan. Direction 86 again references the "31 December of the second year after a general election" which could be read as 31 December 2018, following the elections in 2016.

The indicative timeline in the Directions Paper (Figure 3 at 7.2) indicates however that 10 year community plan, financial plan and asset management plan would be adopted by 31 December 2017.

Direction 87 proposes to:Remove the requirement for a council to prepare a strategic resource plan.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this proposal in the context of reforms requiring:

A four year council plan A 10 year community plan A 10 year financial plan A 10 year asset management plan

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Direction 88 proposes to:Require the financial plan to:

guide financial planning and inform the council plan

provide the community with prescribed information about the human resource and capital worksassumptions and decision making underlying financial forecasts

be informed by the deliberative community engagement process.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?While Council is supportive of the principle behind Direction 88, it is noted that the Direction as presented contains somewhat circular references.

In an integrated planning framework, and where all these plans are prepared and reviewed on the same timeline, the 10 year financial plan would necessarily:

inform, and be informed by, the council plan and the community plan. inform, and be informed by, the same community consultation.

Direction 89 proposes to:Require all councils to prepare and adopt a rolling asset plan of at least ten years by 31 December of thesecond year after a general election, in accordance with the principles of sound financial management, andfor a council to review and approve this plan annually. This plan will guide asset planning and inform thecouncil plan.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is generally supportive of this reform.

Council reiterates the concerns expressed at Direction 82 however, that while the Directions Paper proposes an integrated planning framework, there is no clarity to give assurance that the planning or reporting cycle will be cohesive or integrated.

Direction 89 appears to require a 10 year asset plan that is out of phase with financial year budgets. Direction 86 is also unclear as to whether annual reporting is envisaged as part of the annual report, or on a calendar year basis in line with the date of adoption.

Clarity is also required regarding the timing of the first asset plan. Direction 89 again references "31 December of the second year after a general election" which could be read as 31 December 2018, following the elections in 2016.

The indicative timeline in the Directions Paper (Figure 3 at 7.2) indicates however that the 10 year community plan, the financial plan and the asset management plan would be adopted by 31 December 2017.

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Direction 90 proposes to:Require the asset plan to include information about new assets, asset retirement, maintenance and renewalrequirements for each class of infrastructure assets and to be informed by the deliberative communityengagement process.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is generally supportive of this reform. However, while supportive of community consultation being a key principle of the reformed Act, Council reiterates the comments made regarding the distinction between "community engagement" and "deliberative community engagement" as set out in response to Directions 1, 2, 35, 45, 47, and 49.

It is noted that in an integrated planning framework, where all plans are prepared and reviewed on the same timeline, the 10 year asset plan would necessarily inform, and be informed by, the council plan, the community plan and the community consultation that underpins it. In many instances of course, statutory and legal requirements for asset maintenance and or renewal (including matters such as disability access or building safety) supersede consultation outcomes (deliberative or otherwise).

Direction 91 proposes to:Set out requirements for what is to be included in the financial and asset plans in Regulations and guidelines.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is generally supportive of the principle of regulations and guidelines setting out the required contents of the financial and asset plans.

These must allow councils sufficient flexibility to accommodate each council's particular circumstances and the consultation that is to inform the financial and asset plans.

Appropriate consultation with the sector will also be required prior to adoption of any regulations and guidelines. Overly prescriptive regulations can result in mandated categories of assets that are not applicable to all councils (e.g. airports); or poorly defined capital categories such as “capital expansion” in the current model accounts which are not sector appropriate and impose an undue administrative burden and cost upon council.

Direction 92 proposes to:Require a council to prepare a budget annually and to review it mid cycle at 31 December each year. Requirethe CEO to report the results and to explain material budget variations, including whether a revised budget isrequired, to council.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports the principle behind this reform, however is also supportive of the conclusion in the Directions Paper under Direction 17 that:

“the highly prescriptive nature of [current] arrangements is unnecessary for modern councils. It also impedes their ability to manage their affairs in a responsible and organised way and limits their ability to innovate and to improve how they engage with their communities and conduct meetings."

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Council is of the view that reforms to the Act should not impose unnecessarily prescriptive timelines upon Council and that enabling rather than prescriptive legislation would be more appropriate to this reform.

The timing of a mid-cycle review and of any decision that a revised budget is required, should be a matter for each council to determine according to their particular circumstances and the principles of sound financial management as required by Direction 1.

Council also notes the ambiguity of a requirement that council review the budget "mid-cycle at 31 December". Clarity is required regarding whether this obligation is to review the budget:

"by 31 December" - meaning this could anywhere up to and including 31 December each year. Historically this has been the case at Boroondara where the budget is typically reviewed in September.

"as at 31 December" - meaning the review would likely be considered by council at a meeting in January or February the following year, taking into account that councils typically recess over the Christmas period. (In Boroondara's case, typically from mid-December through to the first Monday after Australia Day.)

Direction 93 proposes to:Include in the Act a clearer definition of material variation in order to clarify when a revised council budgetmust be struck.


Direction 94 proposes to:Remove the requirement to submit a copy of the adopted budget to the minister.Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supportive of reforms that reduce "red tape" and if there is no benefit to the minister in receiving a copy of Council's adopted budget, Council is of course supportive of eliminating this unnecessary regulatory burden.

Direction 95 proposes to:Require all councils to establish an audit and risk committee with an expanded oversight of:

the integrated strategic planning and reporting framework and all associated documents

financial management and sustainability

financial and performance reporting

risk management and fraud prevention


compliance with council policies and legislation

service reviews and continuous improvement

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collaborative arrangements


Do you support this direction? Yes NoWhat other comments would you make for this proposal?Currently Audit Committees are advisory committees to Council. Council is of the view that Audit Committees should be constituted to monitor and report on the systems and activities of a council in ensuring:

Reliable financial reporting and management information. High standards of corporate governance. Appropriate application of accounting policies. Compliance with applicable laws and regulations. Effective monitoring and control of all identified risks. Effective and efficient internal and external audit functions. Measures to provide early warning of any issues affecting the organisation's financial well-

being. The level and effectiveness of appropriate Business Continuity and Disaster Recovery

planning. Maintenance and fostering an ethical environment.

Further, an Audit Committee should not exercise executive powers, but be entitled to receive whatever information, presentations by officers or explanations it considers necessary to fulfil its responsibilities.

Council is of the opinion that assistance from Local Government Victoria in developing a model Audit Committee Charter that reflects the suggested scope may be required. Council is concerned that commissioning internal audit reviews to accommodate the above, as well as the suggested mandatory requirements later in the Directions Paper will lead to extra costs in reporting to the Committee as well as increased workload for the Committee members.

Direction 96 proposes to:Require the audit and risk committee to include a majority of independent members and include councillors,but not council staff.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?The Directions Paper advances no rationale for the requirement that an audit committee include a majority of independent members.

There are no staff members on the City of Boroondara Audit Committee, which comprises an equal number (3) of independent and councillor members. Council's position is that this structure has served Council well over many years and an equality of independent and councillor members should remain a legitimate structure for an audit committee.

Combined with the current provisions of the Act that require the chairperson of the committee to be an independent member [Section 139(2A)] and empowering the chairperson to require audit reports be presented to a council meeting [Section 139(6A)] Council is of the view that there is no need to mandate a structure with a majority of independent members.

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Direction 97 proposes to:Require the audit and risk committee to report to the council biannually and require each council to tablethe biannual audit and risk committee report at a council meeting.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is of the view that a requirement that the "committee report" is ambiguous.

As previously indicated (see Directions 17 and 92) Council supports the principle that highly prescriptive arrangements are unnecessary and impede Council's ability to manage their affairs in a responsible and organised way.

Practically speaking, such committees review, rather than prepare reports and under the reforms as proposed, it is likely that the committees will simply endorse a report prepared by Council officers, adding administrative burden but little value to the process.

The City of Boroondara's practice is to make agenda papers and minutes of the audit committee available to all councillors. Officers also present a report to council (or a special committee of council*) detailing the business of the meeting, which includes a brief summary of each report and the Council resolution recommended by the audit committee. Council's practice is also to report to the audit committee that this report has been presented to Council.

As the audit and risk committee is an "advisory" committee, Council is of the view to avoid ambiguity; the proposed reforms should reflect Boroondara's current practice and require a report on the recommendations (i.e. the advice) of the audit committee to be presented to Council.

If there is a desire to strengthen the capacity of the audit committee to present directly to a council meeting, a suitable alternative would be to require council to allow the audit committee chairperson, on request, to make a submission to council at the meeting at which the report on the recommendations of the audit committee is considered by council.

Council is also of the view that if the reforms are to prescribe any frequency for such reports to council, it should prescribe reports be presented "at least biannually" to accommodate council's like the City of Boroondara who have determined it appropriate to prepare such reports after each quarterly Audit Committee meeting.

* The Services Special Committee has the broadest delegation of Council powers possible and is comprised of all 10 Boroondara councillors.

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Direction 98 proposes to:Continue to require a council to include information in its annual report of operations about achievementsagainst its council plan, community plan, financial plan, asset plan and budget.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports this direction, however reiterates concerns previously expressed:

At Directions 5, 50 and 83 regarding the (in Council's view unnecessary) proposed mayoral duties to lead reporting to the community about the implementation of the council plan and community plan.

At Direction 82 regarding the adoption of the Council Plan, Financial Plan, and Asset Plan out of phase with the Annual Report.

Direction 99 proposes to:Remove the requirement for a council to submit a copy of its annual report to the minister.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of reforms that reduce "red tape" and if there is no benefit to the minister in receiving a copy of its annual report, Council is of course supportive of eliminating this unnecessary regulatory burden.

Direction 100 proposes to:Require a council to present its annual report at an annual general meeting at which the mayor must reportprogress on implementing the council plan.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?As set out at Direction 17, Council supports the principle that highly prescriptive legislation is unnecessary for modern councils and impedes their ability to manage their affairs in a responsible and organised way.

One current example of this is the reforms to Section 76C regarding the Councillor Code of Conduct. Council's usual meeting cycle, together with the prescriptive requirements of Section 76C, resulted in Council advertising and calling a Special Council meeting on 27 June 2016 to consider the Code of Conduct, which was immediately followed by an Ordinary Council meeting.

It is Council's view that the requirement to consider the Code of Conduct at a Special Council meeting in such circumstances added no value to the outcome.

Council is similarly of the view that calling a meeting an "annual general meeting" adds no value to the annual report, and the Act should simply require council to present its annual report at an ordinary council or special council meeting.

Council is also of the view that the proposed reform is ambiguous.

At Boroondara, the annual report is always presented to an ordinary Council meeting and is typically introduced by the mayor. It is unclear whether this would satisfy the requirement that "the mayor must report".

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Practically speaking, it would be unusual for the mayor to write such a report, and unclear from the Discussion Paper whether this is in fact what is envisaged. Practically speaking, it is likely in most instances, that the mayor would present a summary of the annual report, prepared on his or her behalf by officers.

As set out in response to Direction 5 the mayor's key role in engaging with the community to communicate the annual report is quite simply, business as usual. How this best occurs in each municipality should be left to each council to determine in accordance with its ordinary protocols and procedures, or its community consultation and engagement strategy.

Direction 101 proposes to:Require that in developing its council plan, a council take account of relevant aspects of regional and stateplans that affect the municipality.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this reform, noting that there are times when regional and state plans may differ from the needs or expectations of the community as informed by council's community engagement.

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Chapter 8: Sustainable finances for innovative and collaborative councils

Direction 102 proposes to:Require a council to embed the principles of sound financial management in its council plan, communityplan, financial plan and asset plan.


Direction 103 proposes to:Include in the Act the following principles of sound financial management:

manage financial risks prudently, having regard to economic circumstances


undertake responsible spending and investment for the benefit of the community to achievefinancial, social and environmental sustainability over the long term

provide value for money services and infrastructure which are accessible and responsive to thecommunity's needs

ensure that decisions are made and actions are taken having regard to their financial effects onfuture generations

ensure full, accurate and timely disclosure of financial information about the council

undertake regular stress testing and evaluation of financial risk management.


Direction 104 proposes to:Remove the current best value provisions, as value for money is included in the new principles of soundfinancial management.


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Direction 105 proposes to:Require a council at the start of the council term to develop and adopt a procurement policy that isconsistent with the principles of sound financial management and require that all council procurementpractices and contracts comply with this policy.


Direction 106 proposes to:Specify in Regulations what must be included in a procurement policy, including when council will go totender for the provision of goods and services (including thresholds), the process for going to tender andwhat collaborative arrangements have been explored to deliver value for money for the council.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?At this time, Council is not supportive of this Direction.

Council notes little detail is provided in the Directions Paper and that Council's support is conditional on the proposed regulations being the subject of extensive consultation with the sector.

A narrow view of council procurement aligned to traditional contracting for the construction of buildings and works will fail to recognise the diversity and innovation both in council and in the marketplace. Council notes the City of Brisbane example of going to market with problems for the market to solve, and the EU competitive dialogue which is a ‘public-sector tendering option that allows for bidders to develop alternative proposals in response to a client's outline requirements. Only when their proposals are developed to sufficient detail are tenderers invited to submit competitive bids’.

Modern, responsive council's need flexible ways of approaching the market. Council is therefore supportive of the less prescriptive approach to procurement in the Act, provided a similar approach be taken to the Regulations.

Direction 107 proposes to:Require the audit and risk committee to review compliance with the procurement policy and require acouncil to report in its annual report any non compliance with its procurement policy.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?While supportive of the principle, Council is concerned about the practicality of implementing this proposed Direction as drafted.

In order for the audit and risk committee to reach a view on compliance, an internal audit review will need to be commissioned each year. Given the scope of Council’s procurement activities this will be an expensive exercise if conducted annually.

Council notes that the scope of the audit and risk committee as proposed at Direction 95 includes compliance with Council policies, which includes Council's Procurement Policy. Council is of the view that Council and the Audit and Risk Committee are best placed to develop a comprehensive internal audit plan which provides appropriate organisational coverage of procurement activities and compliance with Council's policy.

As such, a specific prescriptive requirement to "review compliance" as proposed is considered unnecessary.

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Direction 108 proposes to:Require a council to make its procurement policy available on its website.


Direction 109 proposes to:Remove the requirement for an annual review of the procurement policy and the requirement to obtainministerial exemptions for failure to go to tender in certain circumstances.


Direction 110 proposes to:Provide councils with automatic access to state purchase contracts, whole of Victorian Governmentcontracts and the Construction Suppliers Register to save time, strengthen standards and improve efficiency.


Direction 111 proposes to:Require councils to develop and adopt an investment policy in accordance with the principles of soundfinancial management and require all council investment decisions to be made in accordance with thatpolicy.


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Direction 112 proposes to:Require the audit and risk committee to review compliance with the investment policy and require a councilto report any non compliance with its investment policy in its annual report.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Consistent with Council's response to Direction 107, while supportive of the principle, Council is concerned about the practicality of implementing this proposed Direction as drafted.

In order for the audit and risk committee to reach a view on compliance, an internal audit review will need to be commissioned each year.

Council notes that the scope of the audit and risk committee as proposed at Direction 95 includes compliance with council policies, which would include council's investment policy. Council is of the view that council and the audit and risk committee are best placed to develop a comprehensive internal audit plan which provides appropriate organisational coverage of investment activities and compliance with council's policy.


Direction 113 proposes to:Require a council to develop and adopt a debt policy in accordance with the principles of sound financialmanagement and only enter into debt in accordance with that policy.


Direction 114 proposes to:Require the audit and risk committee to review compliance with the debt policy and require a council toreport any non compliance with its debt policy in its annual report.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Consistent with Council's response to Direction 107 and 112, while supportive of the principle, Council is concerned about the practicality of implementing this proposed Direction as drafted.

In order for the audit and risk committee to reach a view on compliance, an internal audit review will need to be commissioned each year.

Council notes that the scope of the audit and risk committee as proposed at Direction 95 includes compliance with council policies, which would include council's debt policy.

Council is of the view that council and the audit and risk committee are best placed to develop a comprehensive internal audit plan which provides appropriate organisational coverage of council's financing activities and compliance with council's policy.


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Direction 115 proposes to:Remove the overdraft provisions and remove the requirement for the minister to approve the repayment ofan overdraft from its borrowings.


Direction 116 proposes to:Require councils to expressly describe in their budgets any intention to sell, exchange or lease land. This willenable consultation with the community during the budget process.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is concerned about the ambiguity and practicality of such a reform.

The Directions Paper does not propose a clear definition of council's "intention".

Intention is clear where a council has previously resolved to sell, exchange or lease land, and that intention can be readily detailed in budget documents. In circumstances where council officers may have received offers or generated proposals to sell, lease or exchange land, "council's intention" is not known. Including unapproved officer proposals in community consultation may generate unnecessary debate and conjecture within the community as part of the budget process, as well as unnecessary angst to tenants and neighbours of the subject properties.

Also unclear in the proposal is whether councils will retain the autonomy and flexibility to sell, exchange or lease land in response to opportunities that may arise throughout the financial year. Such opportunities may not have been apparent at the time of consultation with the community.

Practically speaking, the proposed reform does not clearly indicate whether the requirement is to apply to new proposals, or also to apply to existing leases and renewals.

The City of Boroondara, like most local governments, leases numerous parcels of land and buildings to a variety of organisations, such as scouts, neighbourhood centres, kindergartens, clubs and societies. Council also leases land to utility companies for the provision of services, in addition to some commercial leases.

Including details of existing, long term leases in the public consultation phase of Council's budget would add a costly administrative burden on Council, and add little value to the budget process.

Any requirement to included details of the council's expected returns from commercial leases in budget papers could also compromise council's ability to maximise rental yields contrary to the public interest.

Council is also concerned that the principles behind the proposed reform, suggest a higher value is placed on the commercial cost or return of the sale, exchange or lease of land, than the community interest or benefit from the use or outcome of the transaction.

There may be times when consideration of such transactions is appropriate to be done in concert with a budget, such as where other budget measures outcomes are contingent upon the transactions. There may be other times however, when Council and the community's focus should be on the merits of the proposed use, before or after the lease, sale or exchange, and consequently consideration separate from the budget would be more appropriate.

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Council is therefore of the view that rather than imposing prescriptive obligations, council's should be given the autonomy to prudently manage such transactions according to the unique circumstances, community interest and expectation that attaches to each such transaction.

Direction 117 proposes to:Remove the requirement for a council to allow a person to make a submission under the Act in relation tothe sale, exchange or lease of land where the matter has been considered as part of the budget consultation.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council reiterates the concerns expressed in response to Direction 117 regarding the proposal to consult on the sale, exchange or lease of land as part of the budget process.

Direction 118 proposes to:Remove from the Act the requirement for councils to have public liability and professional liability insurance.As a body corporate and organisation with a number of roles and responsibilities to the community and itsstaff, it is expected as a matter of course that councils take out appropriate insurance policies consistentwith effective risk management as well as with the sound financial management principles in the Act.


Direction 119 proposes to:Remove the entrepreneurial powers in the Act and include revised powers to allow councils to participate inthe formation and operation of an entity (such as a corporation, trust, partnership or other body) incollaboration with other councils, organisations or in their own right for the delivery of any activityconsistent with the revised role of a council under the Act.


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Chapter 9: Fair rates and sustainable and efficient councils

Direction 120 proposes to:Require a council to prepare a revenue and rating strategy that:




outlines the rating structure it will use to allocate the rate burden to properties.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?While Council supports the principle behind the proposed reform, Council is of the view that local governments would be unable to comply with the resulting obligation as a consequence of the current Fair Go Rates System.

Rate capping has created significant uncertainty around future rate revenue for councils and is entirely at odds with the proposed reform.

Councils will be unable to prepare a four year plan setting out the amount it will raise through rates and charges as rate caps applicable to local government are only announced in December annually.

Four year revenue and rating strategies will therefore only ever be as accurate as each council's assumptions about expected rate caps in future years, or the likelihood of the Essential Services Commission agreeing to variations.

Direction 121 proposes to:Require a council to align the strategy to its financial plan and to review and adopt it after each generalrevaluation of properties.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of the reform to the extent that it should be aligned to a council's financial plan, however the biennial revaluation has no impact on the rating strategy - particularly where a uniform rate is proclaimed.

Council is therefore of the view that the reform should not prescribe that a review is required after each general revaluation.

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Direction 122 proposes to:Define all land as rateable except for the following four categories of land that would be exempt:

land of the Crown, public body or public trustee that is unoccupied or used exclusively for a public ormunicipal purpose (to be defined to mean to perform public functions for the common good)

land vested or held in trust for any charitable not for profit organisation and used exclusively for acharitable purpose (to be defined to mean the relief of poverty, the advancement of education, theadvancement of religion or for other purposes beneficial to the community and the environment)

land vested or held in trust for any religious not for profit body and used exclusively as a residenceof a minister of religion or place of worship or for the education to be a minister of religion

land held in trust and used exclusively as a not for profit club for persons who performed serviceduties under the Veterans Act 2005. (Option 1) or

Include land subject to a lease, sublease, licence or sublicense that is used for the purposes in Option 1,provided the lease, sublease, licence or sublicense is for a nominal amount (that is, the lease or rentalamount is very small compared with the actual market lease or rental amount: commonly called apeppercorn rent).


owned by a for profit organisation but leased to a charitable organisation

used exclusively for mining purposes. (Option 2)

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is of the view that the reform should be amended to provide that land used for private school education purposes be rateable land.

Direction 123 proposes to:Retain the capacity for councils to grant rebates and concessions and apportion rates based on separateoccupancies or activities.


Direction 124 proposes to:Require councils to apply capital improved value as the single uniform valuation system for raising generalrates. The City of Melbourne would be exempt from this provision.


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Direction 125 proposes to:Fix the municipal charge at a maximum of 10% of the total revenue from municipal rates and general rates inthe financial year, divided equally among all rateable properties.


Direction 126 proposes to:Retain differential rates in their current form. Continue through ministerial guidelines to advise that farmland and retirement villages are appropriate for the purposes of levying differential rates at the discretion ofcouncils.Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council supports this Direction.

Direction 127 proposes to:Require councils to clearly specify how the use of differential rating contributes to the equitable and efficientconduct of council functions compared to the use of uniform rates (including specification of the objective ofand justification for the level of each differential rate having regard to the principles of taxation, councilplans and strategies and the effect on the community).


Direction 128 proposes to:Retain the requirement that the highest differential rate must be no more than four times the lowestdifferential rate.


Direction 129 proposes to:Retain service rates and charges, renamed 'service charges' but remove their application to the provision ofwater supply and sewage services.


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Direction 130 proposes to:As part of these changes, provide the minister with the power to prescribe the setting of other servicecharges in Regulations.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is supportive of this reform provided it does not empower the Victorian Government to levy taxation through council rates notices.

Council is of the view that the Victorian Government has ample powers to levy taxation through the State Revenue Office and should not be collecting taxes as service charges on council rates notices.

Direction 131 proposes to:Retain special rates and charges, but provide clearer guidance in the Act about the purpose of special ratesand charges, and about the criteria councils should use when declaring them and determining the benefitratio.


Direction 132 proposes to:Allow councils to offer ratepayers the ability to pay by lump sum or more frequent instalments on a date ordates determined by a council, provided all ratepayers have the option to pay in four quarterly instalments.Penalty interest when it is charged is to be charged on any late payment from the respective instalment duedate.


Direction 133 proposes to:Allow a council to use rebates and concessions to support the achievement of their council plan's strategicobjectives, provided that the purpose is consistent with their role


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Direction 134 proposes to:Clarify in the Act that, where a ratepayer successfully challenges the rateability of land, a refund of rates mayonly be backdated to the date of most recent ownership.


Direction 135 proposes to:Establish a uniform process and timeline for people wanting a review or to appeal a rates or chargesdecision.


Direction 136 proposes to:Incorporate the municipal council rating provisions in the Cultural and Recreational Lands Act 1963 in theLocal Government Act. Require in the Act that councils disclose the rates that are struck for cultural andrecreational lands.


Direction 137 proposes to:Incorporate the municipal council rating provisions in the Electricity Industry Act 2000 in the Act.


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Chapter 10: A rational legislative hierarchy

Direction 138 proposes to:Create a systematic legislative hierarchy comprising new principle based provisions in the Act and newRegulations setting out the processes required to meet the obligations set out in the Act, and with thecapacity for the minister to issue ongoing non statutory sector guidance as required about any aspect of theAct.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?As previously indicated in response to Direction 79, Council is supportive of the principle behind the power to issue non-statutory sector guidelines, to the extent that they are clearly understood by the minister, the sector, and the community to be guidance.

Given the absence of any requirement to conduct a regulatory impact statement before issuing non-statutory guidelines, Council is of the view that the minister's power should be conditional upon prior engagement with the sector, consistent with the principles of community engagement, a recurrent theme within the proposed reforms.

Direction 139 proposes to:Include an overarching statement of the Act's objectives, intended outcomes and a plan of the remainingprovisions in the Act.


Direction 140 proposes to:Include high level statements to frame the structure, language and content of the remainder of the Act,including new sections setting out the roles and functions and powers of councils.


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Direction 141 proposes to:Include a general power for the minister to make Regulations setting out the requirements councils mustmeet when exercising their powers or discharging their responsibilities under the Act (for example,requirements about the conduct of elections and mandated obligations under the councillor code of conductframework). Include in this power capacity for other relevant subordinate legislation (such as legislativeinstruments like ministerial orders and governor in council orders) with the subordinate legislation onlyrelating to matters permitted by the Act.


Direction 142 proposes to:Empower the minister to release a council from the processes set out in Regulations if the council can showit is successfully discharging its obligations under the Act using different processes.


Direction 143 proposes to:Include a general power for the minister to make guidelines to supplement Regulations on any issue relatedto the Act (such as best practice versions of documents councils must adopt like councillor codes of conduct,budget documents, meeting procedures and councillor briefing processes). The presumption would be that,by adopting these best practice documents, a council would comply with the Act and Regulations.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?As set out in response to Direction 76 Council is supportive of the principle behind the power to issue non-regulatory guidelines, to the extent that they are clearly understood by the minister, the sector, and the community to be guidance.

Council notes that while guidelines are administratively easy to issue, they may nonetheless impose a significant administrative burden and cost upon Council.

Given the absence of any requirement to conduct a regulatory impact statement before issuing guidelines, Council is of the view that the minister's power should be conditional upon prior engagement with the sector, consistent with the principles of community engagement, a recurrent theme within the proposed reforms.

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Direction 144 proposes to:Empower the minister through the ministerial directions power to require a council to adopt these bestpractice policies and procedures where there have been governance failures.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council accepts that there are times, regrettably, when governance failures may necessitate ministerial intervention.

Council is of the view that it would be appropriate for the minister to issue such a direction, where the minister has been satisfied by the municipal monitor, the chief municipal inspector, the Ombudsman or the Independent Broad-based Anti-corruption Commission, there have been governance failings.

Direction 145 proposes to:Require councils to take the following principles into account when performing their functions and exercisingtheir powers:


the need for deliberative community engagement

the principles of sound financial management


the potential for cooperation with other councils, tiers of government or other organisations

plans and policies in relation to the municipality, region, state and nation

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council notes this is consistent with Direction 1, although excludes the suggested principles:

the need for innovation and continuous improvement any other requirements under the Act or other state or federal legislation.

Council therefore reiterates the comments made at Direction 1.

Direction 146 proposes to:Retain the current power of the minister to intervene where a council does not comply with the obligationsset out in the Act or regulations by imposing a municipal monitor or by issuing a ministerial governancedirection.


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Direction 147 proposes to:Include a general power for the minister to make Regulations setting out the detailed requirements ofcouncils when exercising their powers or discharging their responsibilities under the Act (such asrequirements about the conduct of elections and mandated obligations under the councillor code of conductframework). Include in this power other relevant subordinate legislation.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Council is generally supportive of the principle of regulations setting out the detailed requirements on council, noting these must of course allow councils sufficient flexibility to accommodate each council's particular circumstances and be subject to a rigorous regulatory impact statement process.

Direction 148 proposes to:Empower the minister to release a council from the processes set out in Regulations if the council can showit is successfully discharging its obligations under the Act using different processes.


Direction 149 proposes to:Provide guidance to the sector in relation to governance, compliance and best practice. This guidance will bein the form of guidelines and formal and informal advice to the sector.


Direction 150 proposes to:Create best practice versions of essential documents that councils are required to adopt. Adoption of thesebest practice documents will constitute compliance.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?Overall Council supports this Direction. However, there must be sufficient flexibility to enable each council to vary having regard to their own unique set of circumstances.

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Direction 151 proposes to:The minister will have a power under the new Act to require the council to adopt best practice policies andprocedures as part of a governance order where governance issues have been identified.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?This direction duplicates Direction 146. Council reiterates its view that it would be appropriate for the minister to exercise such a power where the minister has been satisfied by the municipal monitor, the chief municipal inspector, the Ombudsman or the Independent Broad-based Anti-corruption Commission that there have been governance failings.

Direction 152 proposes to:Incorporate relevant portions of Part 9, Division 2 and schedules 10 and 11 of the current Act into the RoadManagement Act 2004 (or other relevant legislation), to better consolidate the legislation dealing with roadmanagement.


Direction 153 proposes to:Clarify the role of councils in local drainage, waterways and flood management. Consult about whetherthese are included in the new Act or in theWater Act 1989.


Direction 154 proposes to:List all Acts that impose obligations on councils in a schedule in the new Act, to be updated as newlegislation is enacted.


Direction 155 proposes to:Repeal the City of Greater Geelong Act 1993 and include relevant provisions in the new Act.


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Direction 156 proposes to:Retain the City of Melbourne Act 1993 as a separate Act with the City of Melbourne retaining its distinctelectoral provisions. Consider ways to modernise the Act and remove redundant or outdated provisions.


Direction 157 proposes to:Consider matters relating to theMunicipal Associations Act 1907 independently of this directions paper inconsultation with the Municipal Association of Victoria.

Do you support this direction? Yes NoWhat other comments would you make for this proposal?As the Municipal Association of Victoria (MAV) is the peak body for local government, that consultation should extend beyond the MAV and include direct consultation with the local government sector.

This will ensure that the sector can clearly articulate the needs and expectations it has of the peak body that represents it, and that the reforms of the Municipal Associations Act 1907 are aligned to those needs.

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Documents

Special Council Meeting - 12 Sept 2016 - Item7 ...€¦ · Council submission to the Act for the Future - Directions for a new Local Government Act Directions paper (the Paper). 2