Modernising Local Government legislation

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1 Modernising Local Government legislation Phase 1 Amendments John Davies Manager, Governance Kate Robinson Principal Policy and Legislation Officer Office of Local Government

2 Introduction

3 Scope of today s presentation LGNSW has invited OLG to update you on modernising local government legislation. In 2015, the Government announced it would modernise the Local Government Act in phases. In early January, the Government released an Explanatory Paper setting out the reforms for Phase 1. Online feedback on the Phase 1 reforms is open until 15 March 2016.

4 Consulting on legislative reform Destination 2036 Councils came together to plan how local government could meet the challenges of the future. Independent Local Government Review Panel Recommendations about local government structures, governance models and boundary changes. Local Government Acts Taskforce Looked at ways to modernise legislation, to ensure it meets the future needs of councils and communities. Fit for the Future A Blueprint for the future of Local Government A plan to lay the foundations for a stronger system of local government and stronger local communities. Fit for the Future Progress Report An update on nonstructural reforms, including proposed legislative changes. Explanatory Paper on Phase 1 reforms Summary of proposed Phase 1 amendments to the Local Government Act focussing on council governance and structures.

5 Focus of Phase 1 reforms Phase 1 begins the process of updating the Act so that it meets the future needs of councils and their communities. Phase 1 amendments focus on the governance and strategic business planning processes of councils. They aim to strengthen the system of local government helping councils to better connect with their communities and build their capability.

6 The Phase 1 amendments: overview Broad categories of Phase 1 amendments: Guiding principles for the Act and local government Structural framework of local government The governing body of councils Elections Council s workforce Ethical standards Council s strategic framework Council performance

7 The Phase 1 amendments: overview 1. Guiding principles for the Act and local government Clarify the purposes, roles and guiding principles of local government 2. Structural framework of local government Require an odd number of councillors Require compulsory voting at mayoral elections

8 The Phase 1 amendments: themes 3. The governing body of councils Greater clarity in the roles of councillors, mayors and general managers The term of office of mayors elected by councillors will be increased from 1 to at least 2 years Councillors will be required to swear an oath of office

9 The Phase 1 amendments: themes 3. The governing body of councils (cont.) Councils will be required to adopt and deliver induction and ongoing professional development programs for their councillors and report publicly on councillor attendance Prescription of a Model Meeting Code Within the existing performance improvement order framework, the Minister may appoint a financial controller.

10 The Phase 1 amendments: themes 4. Elections The option of universal postal voting will be extended to all councils 5. Council s workforce Clarify organisation structure determination and the role of general managers 6. Ethical standards Consolidate ethical standards into a Model Code of Conduct

11 The Phase 1 amendments: themes 7. Council s Strategic framework Embed IP&R as an input into a broader range of council activities (eg through the expanded scope of the community engagement strategy and delivery program) A principles-based approach to the regulation of councils financial governance practices (based on the principles of sound financial management prescribed under the Fiscal Responsibility Act 2012)

12 The Phase 1 amendments: themes 8. Council performance Enabling introduction of a performance measurement framework. Mandating internal audit and making it a driver for improved council performance Placing external audit under the auspices of the Auditor- General

13 Consultation process for Phase 1 Circular Explanatory paper atory-paper-proposed-phase-1-amendments.pdf Online survey open until 15 March

14 Future of legislative reform IPART Review of reporting and compliance burdens on Local Government Due to report in April 2016 IPART Review of Local Government Rating System Due to report in December 2016 Further Phases of legislative reform

15 Summary Phase 1 begins the process of modernising local government legislation in NSW. The Government has announced its intention to create better legislation in stages. For Phase 1 proposals, online submissions are open until 15 March Your feedback on Phase 1, as HR professionals working in local government, is welcome.