Campaigning against rate capping | LGA Schemes | New CWMS funding agreement | State Local Government Infrastructure Partnership | Local government reform | Members access to LGA website | LGA Christmas hours No Images? Click here Update from the LGA President Vol 2: Issue 26 - Monday 18 December 2017 Dear Mayors and CouncillorsOn behalf of all at the LGA, our staff, Schemes and Board I wish you, your staff and communities the safest and happiest Christmas. This is a time of joy and family union, and I therefore wish your families some deep breath moments and a battery recharge for all in the front line. I also wish you every success as we move into a very busy 2018. Merry Christmas. LGA President Mayor Lorraine Rosenberg Campaigning against rate capping Last week we launched the third and final phase of our campaign to oppose the introduction of rate capping in South Australia with ads on Adelaide radio. If you didn’t hear these ads you can listen to them here. This final phase of our campaign was endorsed by the LGA Board at its September meeting, and will continue until next March, or until all political parties drop this policy. We will also continue to concurrently run the first two phases of our campaign, focusing on raising awareness of the extent and value of council services, and activating our sector to oppose rate capping. I want to be very clear that this is a campaign against a policy – not a party. The LGA has previously run campaigns against State Government policies that will hurt communities, with planning reform and pensioner concessions two examples from the past few years. In fact, this is – in part – why your Association exists. Schedule 1 of the Local Government Act 1999 states that the “LGA is constituted as a public authority for the purpose of promoting and advancing the interests of local government”. However, the response from the SA Liberal Party to our campaign so far has been disappointing. Rather than defend their policy, they’ve personally attacked me, and attacked your councils. It’s clear they are happy to trash the reputation of our sector to score votes next March. You might have received an email from Ronald Evans promoting his new website, developed to promote candidates who support rate capping in the lead up to the 2018 council elections. We don’t have further information on Mr Evans or others who may be associated with this website, but it’s evidence that this issue will continue to be on the agenda for the coming twelve months. As an association, we will continue to stand up for communities against cuts to local services. However, we need your support in letting your communities know what’s at stake, and that in the long run, rate capping will cost them more than it will save. LGA Schemes I understand Mayors and council CEOs may have recently received communications from Procurement Australia, offering to review your council’s insurance requirements and current coverage. Their email selectively quotes from our independent review into the LGA’s Schemes to cast doubt on the value and relevance of the mutual fund model that we have here in South Australia. While this review did highlight opportunities to improve and modernise the governance of the LGA’s Schemes, it also noted that the current structure of pooling risk in a mutual, buying reinsurance to protect the pool and using expert providers for management is an effective model for local government, superior to alternative options such as those proposed by Procurement Australia. This review also highlighted that 100% membership of the Schemes is a significant strength as it enables all councils to benefit from economies of scale. Importantly, it also fosters confidence with the State Government and the delivery of cooperative arrangements unique to South Australia, such as the Treasurers Indemnity which enables the Schemes to provide members with unlimited civil liability protection in the event of catastrophe. This is further demonstrated by the Government’s recent changes to the Local Government Financial Management Regulations 2011 that increased the minimum amount of civil liability insurance councils must maintain from $50 million to $300 million. The LGA advocated for this increase, recognising that the previous minimum amount of $50 million (which has been in place for almost 20 years) would be insufficient to cover many councils if a catastrophic event were to occur, and that a council with insufficient coverage could pose a financial risk to other councils. For example, the $24 million paid out after 1983’s Ash Wednesday event would amount to more than $200 million if it happened today (and closer to $250 million when accounting for increased levels of infill development). However, these changes will not cost councils more, as all councils are currently members of the LGA’s Mutual Liability Scheme (LGAMLS), and have unlimited civil liability protection through this Scheme as part of their contribution. Another important example of where a united sector delivers confidence to a key regulatory body is with Return to Work SA, who recently extended the Workers Compensations Self-insurance license for a further five years. A critical element in RTWSA showing such confidence in local government was that the LGA Workers Compensation Scheme (LGAWCS) were able to demonstrate through the evaluation that WHS systems implemented by member councils are conforming, supported by standardised, sound systems, with senior management engagement evident with significant improvements across several key areas. Being self-insured has saved over $250m since the LGAWCS inception. The LGA is currently working with JLT to modernise the Schemes’ governance arrangements, and these new arrangements will be confirmed by the LGA Board and implemented before next year’s contributions are due. Legal action from District Council of Coober Pedy You may have recently seen media coverage about a legal action launched against the LGA by the District Council of Coober Pedy. The allegations raised in this action are completely without merit and will be vigorously defended. The LGA self-reported these allegations to the Office for Public Integrity, and we have been provided with permission by Commissioner Lander to publish that he has decided to take no further action on the primary issue identified in our report. New CWMS funding agreement I was thrilled to last week sign a new ten year $47 million funding agreement with the State Government to help councils deliver Community Waste Water Management Systems (CWMS) to rural and remote communities. Working with councils and the Government over the past decade we’ve established 11 new waste water treatment facilities throughout the State, resulting in more than 3,000 connections.The benefits of CWMS are not limited to public health – these projects generate much needed regional employment through the construction phase, provide support for existing businesses such as pubs and caravan parks, and in some cases can open up new economic opportunities for remote and rural towns. I’m pleased we are continuing this partnership, and would like to acknowledge the State Government – and Minister Brock in particular – for their commitment to working with councils on this initiative. State Local Government Infrastructure Partnership Earlier this month I attended a sod turning ceremony for the new Mitcham Library – a $7 million project supported by $1.09 million of State Local Government Infrastructure Partnership funding. It was great to celebrate yet another instance where a community will benefit from infrastructure and service improvements as a result of a council’s hard work, and smart collaboration between the State Government, LGA and the Local Government Finance Authority. The State Local Government Infrastructure Partnership is just one of several funding wins we’ve had as a sector in 2017. The reinstatement of Financial Assistance Grants (FAGs) indexation, and return of supplementary road funding for SA are two more. FAGs indexation resulted in South Australian councils receiving an additional $4 million this year, and supplementary road funding will provide our State with $40 million spread over this year and next. I would encourage you to write to Federal Local Government and Infrastructure Minister the Hon Darren Chester MP to thank the Commonwealth for this increased funding, and highlight the projects it will enable you to undertake in your communities. Local government reform It was disappointing to see Nick Xenophon announce that he wants a standing committee of Parliament established to scrutinise council decisions, and an Estimates-type process for residents to question council members on budgets. This is another example of politicians making up policies that will impact on our sector on the fly, without first talking to councils or the LGA. We remain committed to working with all parties on sensible reforms for the sector, and our door is always open to members and candidates who want to discuss their ideas for local government. The LGA is currently consulting with members on a suite of potential sector reforms, and we have developed a discussion paper you can download here. Feedback is due by 17 January. Based on the outcome of this consultation, a proposal will be presented to the LGA Board for endorsement in January. We will then provide all parties with a road map for local government reform ahead of the state election, and ask them to support local government in driving its own reform agenda. Members access to LGA website From 1 January 2018 all members will be able to register their own unique user name and password to access the “members only” section of the LGA’s website. You will be prompted to set this up when you first log in during the New Year. Should you forget your password, you will be able to reset this yourself. If have any issues with the registration process please email marketing@lga.sa.gov.au listing your name, council and email address you would like to register. |