[Andrew Butcher]

Please find attached the Draft Exposure Bill and the ‘Towards a fairer rating system A consultation guide to local government rating reform’.

The NSW Government through the Office of Local Government has met the Ministers request to have the Bill available for consultation prior to Christmas.

The deadline for submissions is 5 February 2021.

Hope this is helpful.

Regards,

Andrew

Draft Exposure Bill – rates December 2020

Towards a fairer rating system – a consultation guide to local government rating reform

[Andrew Butcher]

Please find attached our draft submission due to be submitted to the OLG by 5 February 2021.

If you have any comments or would like to share your thoughts please do not hesitate to contact me or other Executive Committee member.

Thank you to the Executive Committee they have been invaluable in compiling this document.

Regards,
Andrew

NSWRP Submission to OLG exposure Draft Bill – DRAFT

[Andrew Butcher]

The Bill was tabled today (16/03/2021) into the Legislative Assembly.

You can view progress through the Legislative Assembly here: Local Government Amendment Bill 2021 (nsw.gov.au)

Regards,
Andrew

[Melissa McCulloch]

Hi RPs

Do we interpret the addition to S506 as a controlled approach to harmonisation?

Section 506 Variation of general income:

Insert at the end of the section—
(2) Without limiting subsection (1), the order may—
(a) specify different percentages for different areas of councils, and
(b) specify a methodology for calculating a percentage rather that specifying a particular percentage, including by specifying a base percentage to which an additional figure may be added in specified circumstances.

Thanks
Mel

[Andrew Butcher]

Hi Mel
This new paragraph relates to the current IPART review of the local government rate pegging system to consider population growth.
In the review terms of reference the Premier has asked IPART to recommend a rate peg methodology that allows the general income of councils to be varied annually in a way that accounts for population growth and whether a ‘growth factor’ should apply to each individual council or whether cohorts of councils should be established for this purpose.
Hope this is helpful.

Regards,
Andrew

[Andrew Butcher]

Please find attached the Bill that has passed through both houses and is now awaiting Assent by the Governor.

Passed by both Houses

Schedule of Amendments – Local Government Amendment Bill 2021

Also please note that the amendment that has been referred to as allowing greater transparency on rates notices, so the Emergency Services Levy (ESL) imposed by the State Government is clearly identified and no longer hidden inside the total rates item does not allow for any changes. The Act has been amended referencing the Fire and Emergency Services Levy (FESL) which has not commenced.

Regards,
Andrew

[Melissa McCulloch]

I am having some trouble interpreting 495(4)(b) & (c) Intergovernmental projects:

(b) the intergovernmental project does not need to be works, services, facilities or activities within the functions of the council and the rate levied may exceed the value of the part of the project with the council’s functions,
Q – does this mean the total cost to council can be covered particularly if there are activities council is required to facilitate outside of its normal functions? Would this include engaging contractors to complete works allocated to councils?

(c) if the cost of the intergovernmental project is partly funded by another person or under another arrangement, charge or contribution—the rate levied may be limited to what is needed to fund the proportion of the cost for which the council is responsible,
I’m not sure how this differs from (b)

Keen to hear others interpretations of these sub-sections.

Thanks
Mel

[Andrew Butcher]

Hi Mel,
It is my understanding that there are no limitations on the levy provided council meets the OP and Annual Report requirements as per the Bill.
Therefore; ‘does this mean the total cost to council can be covered particularly if there are activities council is required to facilitate outside of its normal functions?‘ – Yes. ‘Would this include engaging contractors to complete works allocated to councils’, possibly, it will depend on the works, services, activities or facilities being provided and the project undertaken.
The difference between 495(4)(b) and (c) is, (c) allows for partial funding of an intergovernmental agreement that is also partially funded by another entity. Accordingly a project may be partially funded by another arrangement and the balance is funded jointly by councils and a government entity.
Remember councils may take this option and it is only were joint funding is being provided by a government entity (defined).
I hope this is helpful.

Regards,
Andrew

• This reply was modified 5 years ago by Andrew Butcher.

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