Council amalgamations | Value of LGA membership | Advocacy | Merry Christmas No Images? Click here Vol 3: Issue 44 - Tuesday 11 December 2018 As we head into the final weeks of 2018, it’s worth looking back on what has been a massive year for local government. There was a state election, council elections, the threat of legislated rate capping, and a commitment to abolish “Rubble Royalties” next financial year. Councils voted in a new LGA Constitution in April, establishing a new LGA Board structure and SAROC and GAROC committees in October. The LGA’s Schemes Review delivered both immediate and long term benefits, with predicted savings of more than $40 million over the next ten years. We achieved all of these things and more through working collaboratively as a sector, and I’m keen to keep the momentum up and continue to get successes as we head into 2019. Over the coming months we can expect to see a federal election, which will be an opportunity to advocate for a better deal for SA councils and communities through a fair share of federal road funding. We understand that the Government will soon commence consultation on local government reform, and I look forward to having an open and honest discussion about what’s working, and what can be improved in our sector. This is the perfect opportunity for us to make meaningful decisions about the future of our sector. LGA President Sam Telfer Council amalgamationsLast Wednesday’s Advertiser included a story about the number of votes required to elect regional council members (subscriber link), which made reference to the Property Council and their long-running push for council amalgamations. Whilst this article targeted regional councils, what it didn’t mention was that voter engagement is typically higher in regional councils, with the District Council of Kimba leading the State this year with an 80% turnout. It also didn’t mention that council amalgamations have historically failed to deliver predicted efficiencies and savings. The LGA worked closely with the previous State Government on boundary adjustment legislation to provide a clear process for councils and communities who do want to make changes to their borders. This new legislation will come into effect on 1 January, and it’s likely we’ll see a few proposals for boundary adjustments next year. However, it’s important that these proposals are developed and assessed transparently, and decisions are based on what’s best for residents and communities. It pays to be a memberEarlier this year UHY Haines Norton independently verified the value of LGA advocacy and services to be worth around $139 million per year – or $2 million per member council. One of the biggest savings for members is through the suite of insurance services provided through LGASA Mutual. Councils save $10 million alone on having their workers compensation through the LGA Workers Compensation Scheme, when compared to being insured through Return to Work SA. The total annual savings for members across the LGA’s three insurance schemes – Workers Compensation, Mutual Liability, and Asset Mutual Fund – is around $33 million, or approximately $500,000 per council. This year the LGA completed a review into its Schemes, which resulted in modernised governance arrangements, and an additional $43 million in savings over the coming ten years. Working together and aggregating our spend is one way we can make our sector more efficient, and ultimately deliver savings for our ratepayers. Successful advocacy outcomeThe Local Government (Differential Rates on Vacant Land) Amendment Bill 2018 was introduced by Hon John Darley MLC on 1 August 2018, and proposed amendments to limit councils’ decision making around differential rating of vacant land. A number of councils expressed concern to the LGA that the proposed amendments would have negative financial and resourcing impact on councils, and result in higher costs for all ratepayers. The LGA’s policy position is that local government is the most appropriate level of government to determine the basis of rating and distribution of rate revenue across their communities. Councils give careful consideration to various scenarios and rating structures, and the potential impacts on the community as part of setting their rating policy and developing annual business plans. The development of these plans and policies is subject to broad consultation requirements under council public consultation policies, which are required under the Local Government Act 1999. All ratepayers have the opportunity to comment on any proposed differential rates during this public consultation process. Additionally, there are appropriate provisions within the Local Government Act 1999 for applications to be made to individual councils to provide discretionary rebates for vacant land that is planned to be developed for residential use. Through these rebates, councils can provide support to land owners on a case by case basis in circumstances where a variation from the differential rate for vacant land is warranted. The LGA provided submissions and made representations to political parties to express the concerns of councils and seek their support in opposing this Bill. The Bill was debated in the Upper House on Thursday 29 November 2018 and was voted down by both the Government and the Opposition for the reasons outlined in the LGA’s submissions. While we opposed this Bill, the LGA remains committed to working with the Parliament to achieve sensible local government reform during this term. Merry ChristmasOn behalf of myself, the LGA Board and staff, I would like to wish you and your families all the best for the holiday period. The LGA office will be closed from 12.30pm Friday 21 December, before re-opening at 8.30am on Wednesday 2 January. Have a safe and blessed Christmas, and I look forward to working with you in 2019. For further information or to submit All SA council members are automatically subscribed to receive this e-newsletter. To unsubscribe please click the link below. |