LGMA CEO Forum Local Government Update

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LGMA CEO ForumLocal Government Update
Michael Kinnane Director-General Department of
Local Government Sport and Recreation
Thursday 19 February, 2009
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Local Government Reform

• Four elements
• Structural and boundary reform
• Legislative reform
• Capacity building
• Performance measurement and reporting

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One Year On

• March 2008 Elections
• Assistance to Local Government (27M)
• New Governance Model for Torres Strait and
  Northern Peninsula Area
• New Local Government Bill
• Reforms to the Department
• Capacity Building of Councils
• Sustainability and Reporting Process
• QTC Assessments of Amalgamation Costs
• Funding Review for Local Government

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Structural Reform amalgamation costs

• Model template includes
• Costs identified and number of years over which
  the costs are incurred
• Expected savings including technology usage,
  efficiencies in fleet and water, procurement
  practices
• 10 year financial plans
• Supporting evidence

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Legislative Reform Local Government Bill

• LGMA has proposed 23 amendments 19 of which
  Minister will support
• Clause 12(3)(a) will be amended to
• clarify that directions from a Mayor to a CEO
  must be in accordance with council policy and
• clarify the Mayors responsibility for ensuring
  the CEOs performance appraisal is carried out,
  and that the form of the appraisal may be decided
  by the local government.

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Legislative Reform other amendments

• LGAQ proposed 45 amendments 34 of which
  Minister will support
• Amendment of clauses 122 123 to provide
  specific criteria for the suspension or dismissal
  of a councillor and for the dissolution of a
  local government
• Removal of the criminal penalty for Material
  Personal Interest breaches

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Capacity Building

• Regionalisation
• Indigenous communities
• Grants and subsidies
• Sustainability and reporting process

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Capacity Building

• Regional location of staff
• FNQ Cairns and Atherton
• North Queensland Townsville, Mount Isa, Mackay
• Central Rockhampton, Emerald, Bundaberg,
  Maryborough, Longreach, Hervey Bay
• South West Toowoomba, Dalby, Warwick, Roma,
• South East Ipswich, Gold Coast, Sippy Downs,
  Beenleigh, Kedron

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Capacity Building

• Host information and training opportunities for
  local government employees
• Support Major Infrastructure Programs
• Liaise with State agencies to fast track State
  interest checks for development approvals
• Resolve local problems where State response is
  needed
• Assist with regional solutions

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Capacity Building

• One governance structure with repeal of the Local
  Government (Community Government Areas) Act 2004
• All local governments may take account of
  Aboriginal Tradition and Island Custom in
  exercising a power
• Ability to charge a residential levy in
  recognition of non-rateable deed of grant in
  trust land in Indigenous council areas
• New reporting framework
• Skills Bank
• Replacement for Commonwealth Development
  Employment Program

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Better planning and reporting

• New sustainability and reporting framework 5
  elements
• Asset management
• Community engagement
• Governance
• Long term financial model
• Integrated financial management planning

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Looking Ahead review of grants and subsidies

• Key role to administer in excess of 900m in
  grants and subsidies
• Accelerate payments
• Minimise deferrals
• Maximise successful completions
• Improve forecasting

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Looking Ahead review of grants and subsidies

• System to identify councils which need assistance
• New formal agreements
• Clear timeframes and delivery dates for forward
  planning
• Assessment criteria e.g. capacity to start and
  finish project on time and within budget, ready
  to start

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Looking Ahead opportunities for partnerships

• Match funding or opportunities for joint
  enterprises
• Identify community needs for vital community
  infrastructure
• Share performance data to maximise eligibility
  for direct funds
• Monitor progress for grant recipients
• Reduce duplication and identify gaps

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Looking Ahead complete legislative program

• Local Government Bill passed by Parliament by
  March 2009
• Local government regulations released for
  consultation from April to August 2009, completed
  by September 2009
• Local Government Electoral Act by October 2009
• Review of City of Brisbane completed by October
  2009
• All new legislation to commence by 10 December
  2009

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Looking Ahead Regulations

• Assets management
• Contracting
• Discretionary funds
• Disposal of assets
• Infrastructure management
• Procurement
• Purchasing
• Rating
• Reporting
• Competitive neutrality complaints
• Enterprises
• National Competition Policy
• Corporatisation, e.g. LGOCs
• Commercialisation
• Full cost pricing
• Code of competitive conduct

• Authorised persons
• Committees
• Drafting standards for local laws
• Employee discipline appeals
• General complaints process
• administrative decision making review
• Kuranda rail levy
• Malls and levee banks
• Meetings
• Other appeals
• Processes of the change commission
• Registers of interests
• Review of anti-competitive provisions
• Superannuation board of directors
• Tribunal processes for remuneration decisions

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Looking Ahead current issues

• Improve environmental health outcomes for
  Indigenous communities
• Address Auditor-Generals concerns through
  support to achieve unqualified audits and
  financial statements on time
• Achieve water savings through water efficiency
  and infrastructure programs
• Identify State owned land for trail bike use
• Reform subsidy programs to deliver the Waste
  Management Strategy
• Support the development of efficient waste
  management plans and strategies

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Looking Ahead complete Reform Program

• Develop and implement the sustainability and
  reporting framework for councils by June 2009
• Implement governance frameworks supporting
  council capacity building by 30 June 2009
• Establish integrated funding program processes
  and systems for local governments
• Accelerate grant allocation and support councils
  to complete projects

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Looking Ahead

• Supportive relationship
• Resolving problems through facilitation
• Opportunities for collaboration