Local Government Act Review Municipal Association of Victoria 30 August 2017

Where are we heading Victorians will better understand and value the role of councils as democratically elected bodies. Councils will be more autonomous and be given the opportunity to embrace innovation and collaboration. The Act will be a living document that tells people clearly what councils do and how to get involved.

LGA Review - Consultation Identification of issues – 2015 – release of a Discussion Paper, commissioning of background papers, technical working groups, community forums. Reform directions – 2016 – release of a Directions Paper with further opportunity for submissions. Draft and Release Legislation – Late 2017 Bill in Parliament – Early 2018.

10 Headline Directions Mayors - Greater responsibilities and longer terms Consistent Representative Structures Consistent voting rules supporting high participation Council Plans driven by participatory democracy Integrated Planning Stronger Ministerial powers to resolve dysfunction Transparency in CEO remuneration policy Power to innovate and collaborate Consistency in rating – CIV to be the valuation methodology Autonomy balanced by a principles based Act

1. Mayors - greater responsibilities, longer terms Minimum of 2 year terms. Election by peers in most cases. Melbourne model where direct election applies. Broader responsibilities. No.

2. Consistent representative structures Unsubdividied, uniform multi-member or single member. Councillor numbers to be determined by a regulated formula. Up to 15 councillors for very large populations (over 250,000). Fewer representation reviews.

3. Consistent Simpler Voting Arrangements No changes to the electoral franchise. Partial preferential voting for multi-member and unsubdivided elections. Single voting method (attendance, postal or on-line) – determined by Minister on advice of VEC. Countbacks to include all votes.

4. Council Plans - Deliberative Engagement Engagement principles in the Act. All councils have a community engagement policy. Councils demonstrate how the council plan reflects outcomes of their engagement strategy. Councils have a complaint policy, independent complaint review mechanism and definition of complaint.

5. Integrated Strategic Planning Include an integrated strategic planning and reporting framework which: makes four year council plan central requires 10 year financial, asset and community plans includes an annual budget and annual report embeds sound financial management principles.

6. Stronger Ministerial powers Empower the minister to: appoint a municipal monitor issue a governance direction to a council recommend that a councillor be suspended by an Order-in-Council suspend or dismiss a council. Streamline power of minister to conduct inquiries into councils into a single power to appoint commissions.

7. Transparency in CEO remuneration policy All councils to have a CEO remuneration policy. Audit and risk committees to monitor and report on the council’s performance against the policy. Councils to secure independent advice regarding CEO recruitment, contractual arrangements and performance monitoring.

8. Power to Innovate and collaborate New power to operate an entity (e.g. corporation, trust, partnership or other body) to deliver any activity consistent with the role of a council. Support for collaboration in procurement within a policy determined by the council.

9. Consistent Rating System Establish a single methodology for valuation of land for rates – Capital Improved Value. Revenue and Rating Strategies to be adopted. Modernise rate exemptions.

10. More Autonomy in a Principle-based Act Councils shape own procurement, investment and debt policies in line with principles of sound financial management. Councils create their own governance rules consistent with principles of transparency, community engagement and sound financial management. Audit and Risk committee reviews compliance with policies and reports biannually to council.

Citizen Responses to Selected Reforms

Timeline to a New Act TIME ACTION 2016 - Q1-2 Consultation on reform ideas 2016 – Q2 Directions paper release 2016 – Q3 Consultation on Directions paper 2016 – Q4 Directions paper submissions analysis Government consideration of reform options 2017 – Q 1-3 Drafting of Bill 2017 – Q4 Consultation on draft Bill 2018 – Q1 Government approval of Bill Introduction into Parliament 2018 New Act