The Statutes Amendment (Local Government Review) Act 2021 (SA) was assented to on 17 June 2021, but is commencing in stages. This will bring about significant reform to local government elections and operations. The Council Meetings and Rates sections of this handbook have now been updated to reflect some of the changes already brought into force. In relation to other changes and those still to come, see the Department for Infrastructure and Transport's summary or your individual council's website.
Local Government is the sphere of government which most directly affects people. Most of South Australia is divided into local areas, each of which is governed by an individual authority, known as a Council. Council activities include waste management, local environmental management, local roads, town planning, parks, libraries, social planning and many other services. In South Australia, Councils are called District, Town or City Councils.
The State Parliament creates the legal framework in which Local Government operates. Most of this framework is outlined in the Local Government Act 1999 (SA) and the Local Government (Elections) Act 1999 (SA) which contain information on how Councils are established, how elections should be run, how and when Councils should meet, how rates are to be charged, how Councils can spend money and what things Councils can do.
In addition to these two Acts, Councils are given powers by other State and Federal legislation including the Food Act 2001 (SA), the Planning, Development and Infrastructure Act 2016 (SA) and the Dog and Cat Management Act 1995 (SA). Councils also have the power to make their own regulations and by-laws.
Councils consist of Council Members who set the policy directions and staff who are paid to carry out the decisions of the Council and elected members and to provide services. These services are decided by the elected Council members.
Each Council is different in size. While large metropolitan Councils employ hundreds of staff, smaller rural Councils may have very few staff. Changes to the Local Government Act 1999 (SA) in 2022 provide that each Council must not have more than 13 members on and from the polling day for the second periodic election after 30 June 2022, unless an exemption is granted [Local Government Act 1999 (SA) s 11A]. Each Council will appoint a principal member, called a Mayor, and may appoint a Deputy Mayor (until each Council’s respective polling day for the second periodic election after 30 June 2022, each Council may instead have a Chairperson and, if elected, a Deputy Chairperson) [s 51].
Council members are elected by the public to represent them and set the strategic and policy direction for the Council. All the elected members combine to form the Council which meets formally and makes decisions by voting on motions. Elected members have no authority as individuals. All elected members have an equal voice in Council meetings and only decisions made by the Council can be acted upon.
Elected members should work to ensure that they make the best decisions for local communities. They discuss local issues with their community, then set policies and decide what action will be taken. Paid staff advise the Elected Members and carry out their decisions. Elected members are not paid a salary but receive an allowance to help defray the cost of council duties.
Some Councils divide the Council area into several parts, known as wards [s 12]. Each ward has one or more Councillors who pay particular attention to what happens in the area they represent. In Councils that do not have wards, Councillors are elected by all voters in the whole Council area. Unlike Federal and State Government elections, voting is not compulsory for Council elections.
Councils are responsible for managing their local area and fostering a safe, healthy and prosperous environment. Councils do this by providing services, infrastructure and facilities that support the wellbeing of people within their community. Policies are made by the Council to provide these services and decisions are made on the level of rates needed to be paid by the community to fund these programs.
As well as providing their own services, Councils participate in the planning and coordination of services provided by others, including the State and Federal Governments, and voluntary and community groups.
Councils will often try to influence the decisions made by other government bodies on issues which have an impact on the local community, including public transport, main roads, hospitals, economic development and the protection of the environment. Members of the community are kept informed of Council's activities and are encouraged to provide their input into Council's policies, strategic planning and the spending of local funds.
Most of the services provided by Councils are discretionary (that is, Councils choose to provide them) and very few of the services provided by Councils are a statutory duty (that is, required by legislation).
Some of the services Councils have a duty to provide include:
Councils may provide other services as they wish (provided they are not contravening other legislation). These may include:
To provide the many services that we all use, Councils need money. Councils have to buy machines and vehicles, materials to build roads and bridges, books for libraries and vaccines for health centres. It costs money to maintain parks and swimming pools. Councils must also pay staff, including administration and clerical staff, environmental officers, drivers, maintenance workers, youth workers, inspectors, engineers, planners and library staff.
Councils with large populations may have budgets worth millions of dollars every year. Smaller Councils will have less money to spend. Some councils work cooperatively with neighbouring councils to share staff and resources.
Councils receive 4 main sources of income to provide services to their communities: rates, fees and fines, grants and subsidies, and loans.
Much of a Council's income comes from taxes on property (land and buildings) called rates. Each year owners of property - including houses, farms and businesses - must pay rates to the Council. The amount paid depends on the value of their property. For example, the amount of rates paid by the owner of a house or flat will be much less than the amount paid by the owner of a large property or business.
There are some organisations, however, that are either not required to pay rates at all on their property or pay a significantly reduced amount in Council rates. Organisations that fall into this category include the State and Federal Governments, charities, churches, hospitals and schools.
Before collecting any rates a Council first establishes exactly what services will be provided in the next financial year and how much those services are expected to cost. It formally adopts a budget. Within this budget the amount of money that will be collected from other sources is estimated. The Council can then work out how much money must be collected from the community in the form of Council rates to balance its budget. The Council discussions are open to the public and the budget is available to the public.
Under financial accountability reforms introduced from 6 January 2022, each Council must adopt annual business plans and budgets and declare general rates by 15 August each year. Adopted business plans must also include a statement about any changes from draft business plans and the reasons why. Under the Local Government (Financial Management) Regulations 2011, Councils are now required to report on expected changes to general rate revenue in their annual business plans, and enable comparability between Councils. This enables ratepayers to understand and engage with Councils about this decision more easily.
Within the framework of the Local Government Act 1999 (SA) there is some degree of flexibility to allow Councils to take into account local issues. Therefore, the way one Council sets its rates may be different to that of another Council and the level of rates overall reflects different costs and service provision levels (e.g. some Councils run a swimming pool and some don't).
A Council must set a policy on how it will determine rates. This is a broad statement by the Council of the approach that it will take and the reasons for this. This process helps to ensure community accountability. After a Council sets its rates for the year it sends out a rates notice or invoice setting out how the rates can be paid. Included with this notice is a brief summary of the Council's rating policy and information on where the full policy document can be seen.
Councils determine how much each ratepayer pays in rates by taking into account property values in the area. The property values used by Councils are usually those set by the Valuer-General. If you believe the value set is inaccurate, you can object.
There are 2 possible types of valuations available to Councils, which are:
Failure to pay rates can result in a debt which becomes a charge against the land. This means that the debt will transfer to any subsequent owners of the property. In extreme cases, a Council can sell a property to recover unpaid rates.
Another way Councils receive money is by charging fees for some of the services they provide. Fees may be imposed to dump rubbish at the local waste depot, swim in the public pool or use other recreational facilities, register a dog, or lodge a building application. Parking fines are another source of Council revenue.
Councils also receive grants and subsidies from the State and Federal Governments. These can be tied to specific programs or available for general use.
Sometimes Councils decide to provide a major service or facility, such as a new recreation centre, by borrowing the necessary funds. As with all loans, the Council must eventually pay this money back, with interest. However, the advantage of using loan funds is that the Council can pay for the project over many years without affecting the other services it provides. It also spreads the burden over a wide range of present and future users of the facilities.
One of the main roles of elected members is to make decisions on behalf of the local community. This is done at Council meetings. Councils meet regularly, at least once a month [Local Government Act 1999 (SA) s 81(2)], and these meetings are open to the public. These meetings may occur remotely [see Legislation Interpretation Act 2021 (SA) s 39(3); Legislation Interpretation Regulations 2021 (SA) reg 4(a)]. The agenda, or list of issues for discussion at the meeting, is made available to the public in advance so that the community knows which issues are being discussed. In special circumstances, parts of a Council meeting may be closed to the public, when matters of a confidential nature are being discussed [Local Government Act 1999 (SA) s 90(2)-(3)]. This might include an individual's financial circumstances, a particular staff member or legal matters. A person who enters (or tries to remain in) a meeting aware that an order has been made for a closed meeting is guilty of an offence and can face a penalty of up to $500 [s 90(5)].
Meeting procedures and rules
The meetings are guided by the Mayor of the Council, and follow formal meeting procedures. These procedures ensure all elected members have a chance to speak about the issues and that all the listed items are discussed. There are special rules about how councils can re-visit and revoke or amend earlier decisions. These are known as "rescission motions".
When decisions need to be made, the Mayor calls for a vote. Members of the Council (not including the Mayor or presiding member of the meeting), have the opportunity to vote with the outcome being decided by the majority decision [s 86(4)]. The Mayor (or, if absent, the presiding member of the meeting) does not vote on an issue unless the vote is tied. In this instance the Mayor (or presiding member) will make the casting vote to achieve an outcome [s 86(6)].
Conflicts of interest and how they are to be dealt with
From time to time, a Council member may consider that their involvement in a particular Council decision could be viewed as a conflict of interest [Local Government Act 1999 (SA) s 73]. Council members are required by law to disclose any conflict of interest they may have [ss 68, 75B and 75C].
A material conflict of interest occurs when the member, or a person or organisation associated with the member (such as a family member), would gain a benefit, or suffer a loss, depending on the outcome of the matter being determined [s 75]. The benefit or loss can be personal or financial. For example, the Council may be discussing a development application that has been submitted by a close relative of a Council member. Having disclosed a material conflict of interest, a member must leave the room in which the discussion is taking place such that they cannot see or hear the discussion and vote [s 75C]. The member is not allowed to vote on the particular issue.
A general conflict of interest occurs when an impartial, fair-minded person might consider the member’s private interests may result in the member acting against their public duty in the consideration of a council matter [s 74]. A member is not prohibited from voting on a matter despite there being a general conflict of interest, although there are strict reporting obligations if the member chooses to vote (or is required to vote to maintain a quorum) [s 75B].
Under section 75A and regulation 8AAA of the Local Government (General) Regulations 2013 (SA), certain matters are excluded from the conflict of interest requirements. This includes matters that apply to all or a substantial portion of ratepayers, electors or residents, and policies relating to allowances and benefits payable to Council members (provided it applies to all members equally). It is also possible for a Council member to attend a meeting even if they have a material conflict of interest but permission of the Minister for Local Government is required [s 75C(3)].
Council members are required to disclose the details of any gift or benefit received of an amount greater than the prescribed amount ($50 from 17 November 2022), and a register of gifts and benefits is to be maintained by each council [s 72A(4)].
Request by members of the public to address meetings
As well as attending Council meetings, in some Councils, members of the public can also make a prior request for permission to address the elected members and Council officers on relevant issues. In other Councils there are other opportunities to hear public views to reduce the length of formal meetings. Each Council will have a policy on how it deals with requests from residents to address the Council.
Committee meetings
As well as full Council meetings, sometimes Councils also have committee meetings. These committee meetings allow time for more detailed discussion on particular subjects or issues, such as planning applications. These committees make recommendations to the full Council, where the decisions are voted upon. In some cases, certain decisions can be delegated to these committees or even to individual council officers.
Information and briefing sessions
A Council, or the chief executive officer of the Council, may hold or arrange for the holding of a session (not being a formal meeting of a Council or Council committee required to be held under this Chapter) to which more than 1 member of the Council or a Council committee is invited to attend or be involved in for the purposes of providing information or a briefing to attendees (an information or briefing session) [s 90A(1)].
A matter must not be dealt with at a Council information or briefing session in such a way as to obtain a decision on the matter outside a formal meeting of the Council or a Council committee [s 90A(2)].
A Council information or briefing session must be conducted in a place open to the public during any period in which a matter that is, or is intended to be, on the agenda for a formal meeting of the Council or a council Committee is discussed at the session [s 90A(3)]. Some exceptions apply [see s 90A(4)].
Further requirements as to how such meetings may be run are detailed under the Local Government (General) Regulations 2013 (SA) [see reg 8AB].
Further information
Most local Councils produce information about the various policies and by-laws under which they operate. These are available from Council offices or Council websites. Further information can also be found on the Local Government Association of South Australia's website.
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