Councillor Hanbook 2017 - Office Of Local Government NSW

Section 1AN OVERVIEW OF LOCAL GOVERNMENT IN NSW1.1Local governmentLocal government in NSW employs over45,000 people and spends more than 10.3billion annually. The services it provides rangefrom traditional town planning and wastemanagement to community development,environmental protection, economicdevelopment and much more.Councils can order people to do certain things,such as demolish a building or restrain a dog.They can also issue orders to ensure that publicamenity is not compromised; for example, toprevent a noise nuisance, or the operation ofan inappropriate business in a residential area.Increasingly, councils are playing a role in not justdelivering services to their community but alsoshaping the future of the community by workingwith local people to develop and deliver a visionfor each place.Councillors play a vital role in meeting theneeds of local communities. They serve theircommunities by listening to people in the localarea and then representing those views oncouncil. They make decisions that can changelocal communities and environments.The communities that councillors representare made up of a mix of people with differentneeds and interests from a diverse range ofbackgrounds. Effective councils are made up ofcouncillors that reflect this mix.Local government is often called ‘the thirdsphere’ of government in Australia. It isan elected system of government directlyaccountable to the local community.Each council is an independent, statutorybody responsible for administering its localgovernment area.‘The council’ comprises all the electedrepresentatives, or councillors, who work togetherto govern their local community. The councilprovides leadership to its local community.STATEFEDERALGOVERNMENTGOVERNMENTForeign affairsDefenceTrade relationsCommunicationsImmigrationPensionsPublic hospitalsPublic schoolsPolice serviceAmbulance serviceFire brigadesState roadsLOCALGOVERNMENTThe three spheres of government andexamples of their responsibilitiesFor further information about thespecific services provided by councils,see Services and functions thatcouncils provide, on page 13.Town PlanningSocial PlanningCultural DevelopmentPublic librariesWaste collectionChild careLocal roadsOffice of Local Government5

1.2Local government reformThe NSW Government has been working withlocal councils since 2011 to achieve the sharedvision of strengthening local communities.The NSW Government is committed to creatinga stronger, modern system of local governmentthat will deliver the high-quality infrastructure andservices that communities across NSW deserve.Significant progress has been made, with thecreation of new councils, modernising the LocalGovernment Act 1993 (the Act), working withcouncils to support regional collaboration andstarting to address the unique issues facing thecommunities of the Far West of NSW.The Government will build on these achievementsas well as the consultation, research andindependent reviews conducted since 2011.The NSW Government’s local governmentreforms include a number of integrated initiativesthat are delivered through three key programs.These programs are:Program 1. Creatingstronger councils»» Create new councils»» Facilitate regional collaboration»» Support Far West councils and communitiesProgram 2 — Improving councilperformance and governance»» Deliver programs to improve councilcapability, with an initial priority onfinancial sustainability»» Support rural councils to deliver the servicestheir communities need»» Provide new powers to intervene in financiallyunsustainable councils»» Deliver tools to support improved leadershipand governanceProgram 3 – Strengthening thesystem of local government»» Create streamlined, modern legislation»» Improve financial systems, includingrating, access to TCorp and FinancialAssistance Grants»» Develop stronger accountability systemsfor councils, including Auditor-Generaloversight and performance improvement toolsand frameworksThe broad range of initiatives recognise thatthere is no ‘one-size-fits-all’ approach to localgovernment, with different solutions required toaddress the varied circumstances and needs ofcommunities across the State.The NSW Government is committed to workingcollaboratively with councils to strengthen localgovernment over the coming years.More information on local governmentreform is available by contacting the Office ofLocal Government.6Councillor Handbook

1.3The principles for local governmentAll councillors should read and be familiar with the principles prescribedunder the Local Government Act 1993 to guide the exercise by councils oftheir functions, decision making, community participation, sound financialmanagement and integrated planning and reporting.The Local Government Act 1993 has beenamended to prescribe new principles for localgovernment. The object of the principles isto guide councils to carry out their functionsin a way that facilitates strong, healthy andprosperous local communities.Under these principles, in exercising theirfunctions, councils should:»» provide strong and effective representation,leadership, planning and decision-making»» carry out their functions in a way thatprovides the best possible value for residentsand ratepayers»» plan strategically, using the IntegratedPlanning and Reporting framework, for theprovision of effective and efficient servicesand regulation to meet the diverse needs ofthe local community»» apply the Integrated Planning and Reportingframework in carrying out their functionsso as to achieve desired outcomes andcontinuous improvements»» work co-operatively with other councils andthe State Government to achieve desiredoutcomes for the local community»» manage lands and other assets so that currentand future local community needs can be metin an affordable way»» work with others to secure appropriateservices for local community needs»» act fairly, ethically and without bias in theinterests of the local community»» be responsible employers and providea consultative and supportive workingenvironment for staff.When making decisions, councils should:»» recognise diverse local community needsand interests»» consider social justice principles»» consider the long term and cumulative effectsof actions on future generations»» consider the principles of ecologicallysustainable development»» ensure their decisions are transparent and thatdecision-makers are accountable for decisionsand omissions.Councils should also actively engage withtheir local communities through the use of theIntegrated Planning and Reporting frameworkand other measures.The Act also prescribes principles of soundfinancial management and integrated planningand reporting, which are discussed in moredetail below.Office of Local Government7

1.4A council’s structureCOUNCIL’S GOVERNING BODY– ELECTED COUNCILLORS»»»»»»»»Providing policy frameworkSetting strategyMonitoring performanceAllocating resourcesReporting tocouncil onactivities andoutcomesImplementationof council’sdecisionsGENERAL MANAGER– COUNCIL STAFF»» Implementing strategy & policy»» Ensuring compliance»» Advising council on strategiesCOUNCIL’S ADMINISTRATIVE BODYKey RelationshipsBetween five and 15 elected councillors hold officeas ‘the council’ for four years. The elected council’srole may be compared to that of the board of apublic company or a more complex version ofa board that oversees a local club; the electedcouncil oversees the activities of the council butis not involved in the day-to-day running of thecouncil. The ‘shareholders’ of a public companycan be likened to a local community.and members of the public. These committeesprovide councillors with the opportunity toparticipate in council decision-making at a moredetailed level.Councils employ staff to administer the council.The general manager is the most senior member ofstaff and is responsible to the council for carryingout council decisions and policy and overseeingthe day-to-day operation of the council.Many councils delegate functions to specialistcommittees that include councillors, council staffThe general manager provides the link between the elected council and itsemployees. While all council staff have a duty to carry out council decisions,they are responsible to the general manager, not the councillors. Individualcouncillors cannot direct staff in their day-to-day activities. However, thisis counterbalanced by the responsibility of general managers to provideinformation, guidance and support to councillors to make good decisions.8Councillor Handbook

1.5Services and functions that councils provideCouncils provide a very wide range of services and functions. Broadly, these may be grouped into fivecategories, as shown below.Planning forsustainabledevelopmentProviding andmaintaininginfrastructureProtecting tSafeguardingpublic healthServices and functions that councils provideExamples of services that fall into each of these categories are given below. These represent a sample only.Providing and maintaining infrastructureProviding an appropriate and affordable level of infrastructure is one important contribution a councilmakes to its community. For example, councils provide and maintain local roads, bridges, public carparks, footpaths, sporting fields, parks and art galleries. Outside of metropolitan areas, councils arealso responsible for water and sewerage. Councils must consult with their local community aboutproviding and maintaining these public assets.Planning for sustainable developmentCouncils have a major role in providing long term strategic planning for a local government area aswell as town planning, zoning and sub-divisions. They engage communities in key planning decisionsthat will affect the growth of their communities. They seek to integrate planning for infrastructurewith the strategic planning of land use so that infrastructure that supports growth is fundedand delivered.In addition, councils are responsible for processing development applications, for building site andcompliance inspections, and for ensuring compliance with building regulations.Office of Local Government9

Protecting the environmentSupporting economic developmentCouncils also have a major role in helpingto protect the environment. They haveresponsibilities under the Protection of theEnvironment Operations Act 1997 and can issuevarious protection of the environment noticesincluding clean up, prevention, compliance cost,provision of records and information and noisecontrol notices.Many councils contribute to economicdevelopment by working with local businesses,coordinating economic development groups/activities/events and providing tourism servicesand facilities.Councils regularly assess the state of their localenvironment, provide environmental programsand use their regulatory powers to preventpollution or restore degraded environments.Councils also have environmental protectionresponsibilities under other legislation. Forexample, councils are responsible for noxious weedcontrol under the Noxious Weeds Act 1993.They also carry out activities to preserveaccess and amenity to the environment, suchas recycling, street cleaning, regulating parkingand management of vegetation including bushland reserves.Supporting the communityCouncils regularly consult with and assessthe needs of their community with a view tosupporting the community and its development.They provide a range of services, includingsome aimed at groups in the community withspecial needs.Community services include libraries, sport andrecreation facilities, home care services such as‘meals on wheels’, swimming pools, playgroundfacilities and child care centres.10Councillor HandbookSafeguarding public healthCouncils help maintain high standards of publichealth and reduce the risk of exposure to a widerange of diseases through activities such as foodshop inspections, waste disposal, pest and vermincontrol and hazardous material containment. Theyalso ensure public safety through controlling dogsand cats (or companion animals).1.5.1 Why does local serviceprovision vary between councils?Councils can choose the range and quality ofservices they provide, based on discussions withtheir community about their needs and whatthey want to pay for. This is done through theIntegrated Planning and Reporting frameworkprocess, which is explained in more detail later.

1.6 How are councilsfunded?On average, councils receive 21 per cent of theirregular income from ordinary land rates, which ispaid by landowners. Councils can also charge forservices such as waste management, and watersupply and sewerage (outside metropolitanareas). Charges must be used specifically for thepurposes for which they are collected.Councils can get additional income from fees forthings like parking and the use of publicly ownedfacilities like swimming pools, halls and otheruser-pays services. Fees can also be chargedfor giving information, supplying products orprocessing applications.All councils receive a Financial Assistance Grantevery year, which is paid by the AustralianGovernment through the State Government.The amount of the grant varies from councilto council. Councils receive grants from othersources from time to time. For example, Roadsand Maritime Services may make a grant for workon a particular road.Councils may borrow funds for any purpose.Councils may also invest funds and receiveincome from the interest. Ministerial Investmentand Borrowing Orders and associated guidelinesprovide the framework in which councils mayinvest and borrow.Council revenue is discussed in further detail inSection 6—Financial Management.1.7Legal frameworkCouncils work within the laws established bythe NSW Parliament. The Local GovernmentAct 1993 provides a legislative frameworkreflecting modern community expectations,and gives councils broad powers to plan forand provide local community services andfacilities. The Act is administered by the Ministerfor Local Government through the Office ofLocal Government.Councillors have a wide range oflegislative responsibilities with whichthey need to acquaint themselves.As well as the Local Government Act 1993, thereare a number of other laws which councils areresponsible for implementing.For example, councils have responsibilitiesfor animal control under both the CompanionAnimals Act 1998 and the Impounding Act 1993;for building and development controls underthe Environmental Planning and Assessment Act1979; for environmental protection under theProtection of the Environment Operations Act1997; for the control of noxious weeds under theNoxious Weeds Act 1993, and for the provision,maintenance and management of roads underthe Roads Act 1993.The Local Government Act 1993 providescouncils with broad service powers. At the sametime, if a council takes action or makes a decisionwithout the necessary legislative authority, it maybe held by a court of law to be acting beyondits power. If a council’s power is not exercised inthe manner prescribed by Parliament, it may bedeemed not to have been exercised at all.Office of Local Government11

Councils must take care to exercisetheir powers properly. Otherwise theirdecisions, and any resultant actions,may be declared void by a court, oftenwith consequent financial loss.1.7.1When a council has to make a decision involvinga value judgement, it must do so with fairnessand justice. Natural justice requires that thedecision be unbiased and that everyone whoserights and interests are affected is given anopportunity to express their views before thedecision is made. Adequate notice of the decisionshould also be given so that any right to be heardcan be exercised.Protection from civil liability is onlyprovided where a councillor’s actionsare undertaken in the manner referredto in the relevant sections of the LocalGovernment Act 1993, including ingood faith and for purposes related tocouncil activities.A council may be liable for actions carried outnegligently that result in damage or injury topersons or property. This liability extends to theactions of employees or other people to whomthe council’s functions have been delegated.However, councillors and employees will not incurpersonal liability where the matter complainedof was done in ‘good faith’ for the purpose ofexecuting any Act. ‘Good faith’ can be broadlydefined in this context as something done honestly.Limited legal protectionThe Local Government Act 1993 providescouncillors with a level of protection from civilliability action for undertaking council-relatedand council-endorsed activities as a councillor.Councillors must read and understand sections731, 732 and 733 of the Local GovernmentAct 1993, which provides protection. In theevent that a councillor does not understand anissue, it is the obligation of that councillor toseek and be guided by their own legal advice.Councils are required to have an adopted‘Payment of Expenses and Facilities for Mayorsand Councillors’ policy which may outline thecircumstances where the council will reimbursean elected representative’s legal expenses.In relation to defamation action, a council may besued for defamation, although it cannot itself suefor defamation. Individual councillors and councilemployees may also be sued for defamation,whether in their private or public capacities.Generally speaking, councillors at meetings ofcouncil (or council committees) are protectedfrom defamation by the defence of ‘qualifiedprivilege’, but only to enable them to speakfreely and publicly in undertaking their duties incouncil meetings.Any comment or statement a councillor makes ata council meeting must be relevant to the councilbusiness, made in good faith and without malice.12Councillor Handbook

SECTION 2ROLES, RESPONSIBILITIES AND RELATIONSHIPSThe importance of trust and mutual respect within the council team and betweencouncil and senior management cannot be underestimated.Councillors can have a major and positive impact on the health and well-being of the whole community.A good working relationship between councillors, the mayor, the general manager and other councilstaff is fundamental to an effective council.Councillors must also have an understanding of how to manage external relationships, with thecommunity, the media and other organisations including State agencies.The roles of key people in councils, including councillors and the general manager, are defined in theLocal Government Act 1993 and are discussed in detail below.2.1Roles and responsibilities2.1.1Role of a councillorThe role of the governing body of a councilCouncillors comprise the governing body of acouncil in the same way that a Board of Directorsis the governing body of a corporation. The LocalGovernment Act 1993 prescribes the collectiverole of a council’s governing body as follows:»» to direct and control the affairs of the councilin accordance with the Act»» to provide effective civic leadership to thelocal community»» to ensure as far as possible the financialsustainability of the council»» to ensure as far as possible that the councilacts in accordance with the principles for localgovernment (as described above) and the plans,programs, strategies and polices of the council»» to develop and endorse the communitystrategic plan, delivery program and otherstrategic plans, programs, strategies andpolicies of the council»» to determine and adopt a rating and revenuepolicy and operational plans that support theoptimal allocation of the council’s resources toimplement the strategic plans (including thecommunity strategic plan) of the council andfor the benefit of the local area»» to keep under review the performance of thecouncil, including service delivery»» to make decisions necessary for the properexercise of the council’s regulatory functions»» to determine the process for appointment ofthe general manager by the council and tomonitor the general manager’s performance»» to determine the senior staff positions withinthe organisation structure of the council»» to consult regularly with c

O ce of Local Government Contents FOREWORD 2 INTRODUCTION 4 5 key things every councillor needs to know 5 SECTION 1 - AN OVERVIEW OF LOCAL GOVERNMENT IN NSW 8 1.1 Local government 8 1.2 Local government reform 9 1.3 The principles for local government 10 1.4 A council's structure 11 1.5 Services and functions that councils provide 12