CEO's rate capping workshop | Special General Meeting program | Revenue myth busting | Role of the LGA No Images? Click here Vol 3: Issue 25 - Monday 9 July 2018 It was fantastic to travel with the LGA CEO to the South East last Friday to meet with the City of Mount Gambier and District Council of Grant. I would like to thank Mayor Lee and Mayor Sage, their council members, CEOs and staff for hosting us, and providing Matt and I with a tour of the city. We had some really interesting discussions during the day around rate capping, cost shifting, state government levies, waste and recycling issues, and the importance of retaining local services in regional communities. Just a few days now until our Special General Meeting regarding the Government’s proposed rate capping legislation, and I would urge you to register your attendance if you haven’t already. It’s free to attend, and we want to see as many mayors and council members there as possible. LGA President Sue Clearihan CEO’s rate capping workshopAround 45 council CEOs participated in a briefing and workshop on the Government’s rate capping Bill at LG House – and via video conference – this morning. This session included a presentation from Alex Hart from the Office of Local Government, who gave an overview of the formula for the primary rate cap determination, the process for establishing criteria for a variation to the rate cap, and the intention behind the monitoring and compliance elements of the legislation. ESCOSA CEO Adam Wilson provided some insight into their current thinking on the administration of the Rate Oversight scheme, and invited guidance from councils on the approach, possible options and level of detail required in guidelines as they are developed. Adam confirmed that ESCOSA will release an issues paper in August 2018 for consultation with the sector. The key takeaways from the session were that:
Program for Special General MeetingThe final program and agenda and papers for Friday’s Special General Meeting at Adelaide Town Hall are now available. I would like to again reinforce that this meeting will not culminate in a vote on the Government’s proposed rate capping legislation, it will instead provide attendees with all the information needed to go back to their own councils and determine a position on the Bill. The day will commence with an address from the Minister for Local Government, the Hon Stephan Knoll MP, followed by ESCOSA CEO Adam Wilson, who will explain how they would approach the implementation of a rate capping system. LGNSW President Councillor Linda Scott and MAV Deputy President Mayor David Clark will then talk about how rate capping has impacted on communities in NSW and Victoria; and University of Technology Sydney Professor Roberta Ryan will provide expert analysis. We’ll also have a panel session featuring the Hon Frank Pangallo MLC (SA-BEST), Hon Mark Parnell MLC (Greens SA), Hon John Darley MLC (Advance SA), and Hon Tony Piccolo MP, the Shadow Minister for Local Government (SA Labor). The formal part of the Special General Meeting will commence at around 12.30pm, and provide delegates with the opportunity to discuss what you’ve heard, and provide feedback and suggestions regarding the Bill. The LGA will develop a model board paper for councils and we’ll be asking councils to provide us with their position on the legislation by 3 August, after which a Special Board Meeting will be called to consider the endorsed positions of councils. As rate capping would impact on councils differently depending on size, services, budget and rate base, the LGA Board will consider the endorsed positions of member councils on the basis of both a ‘one vote, one value’ counting method and a weighted voting method (using the same weighting system applied at LGA General Meetings). The Board will also use the following criteria to inform and resolve a position:
The implementation of rate capping would be the biggest change for SA councils in decades, and so we need to take every opportunity to hear from our entire sector and consider all issues and potential impacts before forming a final position. Attendance at this Special General Meeting is free, and you can register on our website. Revenue myth bustingThe policy of rate capping is based on the premise that local government finances need to be overseen by a higher level of government. However, analysis undertaken by the LGA shows that in recent years, councils have in many ways outperformed the state government from a financial perspective. Last week The Advertiser reported the average rates increase for metro councils this year would be 2.3%, and Local Government Grants Commission figures show that from 2015/16 to 2016/17 general rates revenue in local government increased by almost 4%, while the State Government’s NRM revenue increased by 20%! While council rate increases are often attributed as a cost of living pressure, the table below shows that over the past year increases to electricity, gas, childcare, fuel, medical services, and preschool and primary education have all had a bigger impact on CPI. Over the past decade the LGA and councils have undertaken a great deal of work to improve the financial sustainability of the sector, which has seen the net debt of local government decrease by 48%. This shows that, despite rates increases trending down, councils are still raising the revenue required to deliver the services their communities want and need. Role of the LGAThere’s often questions in our communities about what the role of the LGA is, how it relates to and interacts with councils, and how its activities benefit ratepayers. We undertake an annual review of the value delivered to member councils, and you can download this year’s report here. However, if you’re asked by members of your community about what the LGA does, you can explain that the Association:
The LGA is always happy to further explain and expand on the benefits of Association membership, so please let me know if you would like someone to present at an upcoming council meeting. For further information or to submit |