Councils vote on rate capping | 2018-19 State Budget Submission | The cost of rate capping | LGA elections | 2018-19 LGA Pricing & Methodology Schedule | Aboriginal Affairs | Drought Relief | Media round up No Images? Click here Vol 3: Issue 29 - Monday 6 August 2018 Thank you for getting your council positions back to us on rate capping. I understand there are still a few councils meeting this week to discuss and decide on their position, and we look forward to hearing from them before our Special Board Meeting this Friday. With the 15 percent increase in the Solid Waste Levy, and increases of up to 9 percent in the NRM Levy this year (along with escalating electricity, gas and fuel costs) one can't help but recall the old adage 'Don't do as I do, just do as I say'! Remember that the LGA election for metro (GAROC) and regional (SAROC) council areas is underway in the lead up to our AGM in October, when a new regional President will also be appointed. The state-wide council elections are also fast approaching. It's a busy time, it's democracy at work and I wish you all well. LGA President Sue Clearihan Councils vote on rate cappingFifty-six South Australian councils have now considered the Government’s Local Government (Rate Oversight) Amendment Bill, with more than 90% voting to oppose the proposed legislation. We are expecting a few more responses in the next day or so, and all council positions will be considered when the Board meets this Friday to determine a final position on this rate capping legislation. The Board will also consider a range of other factors, including:
I would like to thank all of you who have taken the time to participate in this process, including attending our Special General Meeting in Adelaide last month, and voting on the Bill in your council meetings. We will be sending a communique to all members immediately after Friday’s meeting that will confirm our final position on this legislation, and let you know how we’re planning to move forward. It is important to emphasise that as an Association – and a sector – we believe in sensible reforms that will support councils and benefit communities, and we will continue to work with the Government and Parliament towards positive and effective change. 2018-19 State Budget SubmissionWe all know that cost shifting costs our sector millions of dollars every year, and we’ve used our 2018-19 State Budget submission to ask the Government to take some of these costs back. The LGA’s submission calls on the Government to:
The LGA has held the view for many years that any serious effort by the State Government to address cost of living pressures for South Australians must include a reduction in these costs, which add millions of dollars to the rates paid by South Australians. It remains to be seen whether a new government means a new attitude to cost shifting to councils. At a sector level, it is difficult to build community awareness of this complex web of State Government levies, charges and rebates, and what it means for ratepayers. We need your continued support to highlight the impact of these costs locally, and let communities know how much of their rates end up subsidising the State Government. We have also asked the Government to commit to reducing South Australian cost of living pressures through policies and legislation that will address the rising costs of electricity and gas, automotive fuel, child care, medical, dental and hospital services, and preschool and primary school fees. Other opportunities we’ve highlighted include supporting economic development through investing in a Strategic Population Policy and increasing the Regional Development Fund, and building better communities through a neighbourhood infrastructure program. The 2018-19 State Budget will be handed down on 4 September, and you can download a full copy of the LGA’s Submission here. The cost of rate cappingIt was disappointing to read an article in The Advertiser last Tuesday claiming that limiting rate increases to CPI ten years ago would have saved ratepayers almost $500 this year. As I pointed out in my weekly update to media and other stakeholders, going back ten years doesn’t acknowledge the significant work councils undertook following 2005’s Local Government Financial Sustainability Inquiry to improve their asset renewal and long-term financial sustainability. In some communities higher rate increases in successive years were necessary to adequately fund infrastructure and services. This is backed up by rigorous and transparent long-term financial plans. Following this period of significant nation leading reform, rate increases have been trending downward over the past five years. In metro Adelaide rate increase were on average 2.9 percent last year, and are 2.3 percent this year (against a CPI figure of 2.7 percent). These modest rate rises have been achieved despite electricity and fuel costs escalating well above CPI, and despite costs that have been shifted to councils by the State Government through increased levies, funding cuts and new responsibilities. This is compared to a 15 percent increase in the Government’s own Waste Levy this year, and NRM Levy increases as high as 9 percent. How much would South Australian taxpayers have saved if State Government taxes were capped at CPI for the past ten years? LGA electionsPlease note that nominations for the position of LGA President as well as members on SAROC and GAROC must be received by the LGA by 5pm Friday 24 August 2018. Full details on the process, nominations forms, and copies of LGA constitution and SAROC and GAROC terms of reference can be found in LGA Circular 31.8 We’ve received some questions about these roles and the process from members, which the FAQ below addresses. However, should you have any other queries please don’t hesitate to contact Dr Andrew Johnson at andrew.johnson@lga.sa.gov.au. Q. Is
the voting for President counted on a ‘one vote, one value’ or weighted basis? Q. What will the remuneration be for Board, SAROC and GAROC members? Q. Why is the LGA holding elections immediately before general council elections? Recent changes to the LGA Constitution provided for the election of President, SAROC and GAROC members, and the LGA Board to take effect at the conclusion of the LGA’s AGM, every second year. This was part of the modernization of the LGA Constitution, and enables the outgoing President to deliver their annual report, and the LGA’s annual report and finance statements for the preceding year, before handing over to the incoming President. We understand that because of the timing of the AGM, the election of the LGA Board and President, and the local government general election, that there is the potential for the President and/or a Board member(s) to not be elected to their respective council, which would then cause a casual vacancy. However, this situation could also occur if the election of LGA office holders was held three to six months after the council elections to coincide with the LGA’s OGM. 2018-19 LGA Pricing & Methodology ScheduleThe LGA has developed a new Pricing Methodology and Schedule for the coming financial year that transparently outlines how fees and charges for services provided to members will be set. This new document will be updated annually as part of our Membership Proposition Agreement under the LGA’s new Constitution, and our intention over time is to transition from a reliance on grants and member subscriptions towards a more equitable and sustainable model based on providing member value. This will enable us to keep subscriptions as low as possible, while also providing services to members as needed on an opt-in basis. We understand that accessing LGA services and events in Adelaide can be expensive for smaller, regional councils, and where possible we have tried to deliver as many of these services in regional areas as possible (either face to face or through the use of technology) to reduce the need to travel to Adelaide to access LGA services. If you have any questions regarding this new document please let me know. Aboriginal AffairsThe LGA, in conjunction with Reconciliation SA, recently hosted a Reconciliation Action Plan learning circle to learn and share about how plans can strategically support councils’ business plans. Reconciliation Action Plans include practical actions that will drive a council’s contribution to reconciliation both internally and in the communities in which it operates. Feedback from the learning circle and a recent ‘Reconciliation in Local Government’ survey will be incorporated into a review of the LGA’s Reconciliation Action Plan during 2018-19. The LGA also promoted the Governor’s Aboriginal Employment Industry Cluster Program, which aims to connect Aboriginal people to employment opportunities in councils and increase the cultural competency of local government as an industry sector. Mayor Simon Brewer, Campbelltown City Council, is Chair of the Local Government Aboriginal Employment Industry Cluster group. This is some really important work for our sector and the LGA has prioritised taking a leadership role. Information about these projects and outcomes can be found on our website, but if you want to find out more please contact Senior Policy Officer Rebecca Muller on rebecca.muller@lga.sa.gov.au. Drought reliefThe drought continues to impact on regional communities across South Australia, and around the country. There are a number of charities working to raise and distribute funds to those who need it most, and the ABC has highlighted several of them, including the Australian Red Cross, Rural Aid/Buy a Bale, Drought Angels, Aussie Helpers, Lions Need for Feed, Foundation for Rural and Regional Renewal, and the Salvation Army. Media round upIndependent think tank the Committee for Sydney has called for a number of local government reforms, including the abolishment of rate capping. Austerity measures are seriously impacting on councils in the UK. An interesting editorial in the Port Lincoln Times about rate capping. For further information or to submit |