Local Government Reform
Local Government Reform
The changing face of NSW councils
The vision for change A modern system of local government, providing quality services and value for money. Strong, connected councils that play an active role in helping communities grow. Sustainable councils that can deliver the infrastructure and services communities need both now and in the future.
Key reform directions Changing the scale of council operations, improving sustainability, performance and efficiency
Improving the way that State and local governments work together
Changing legislation and cutting red tape, making it easier for councils to do their job
Strengthening regional NSW and providing more options for country councils
The journey towards change
Preparing for change 2011
2012
2013
Destination 2036
TCorp Sustainability Review
Councils came together to plan how local government could meet the challenges of the future.
Conducted a comprehensive, independent analysis into the financial sustainability of every council in NSW.
2014
Local Government Infrastructure Audit Provided information in relation to the infrastructure backlog in NSW and identified infrastructure needs by area and asset type.
Independent Local Government Review Conducted wide consultation to develop key recommendations regarding local government structures, governance models and boundary changes.
Local Government Acts Taskforce Looked at ways to modernise legislation, to ensure that it would meet the future needs of councils and communities.
Today Fit for the Future Local Government Will lay the foundations for a stronger system of local government and stronger local communities.
Helping councils get on with the job
The Government’s response The NSW Government has supported the majority of the Independent Panel’s recommendations for reform. These changes will cut red tape, improve councils’ access to resources, make it easier for councils to do business and encourage greater accountability to the community
Key system reforms Amended Local Government Act
State borrowing facility
Built around IP&R, streamlining procurement, simplifying reporting, enabling change
State borrowing facility, from 2015, to help councils who are fit for the future gain access to cheaper finance
Financial reforms
Regulatory burden review
Rating review, review of Financial Assistance Grants distribution, financial sustainability program
A comprehensive review into the regulatory and compliance burden on councils. IPART will make recommendations for change
Governance reforms
Improved transparency
Clarifying the role of Mayors, Councillors and senior staff. New minimum two-year term for Mayors
A new role for the Auditor General to help councils improve performance
Changes within councils
The Panel’s findings The Independent Panel found that some councils would benefit from structural change Councils have been asked to consider the recommendations and prepare a Fit for the Future proposal. Up to $258 m is available to support councils who want to merge voluntarily. IPART will assess the proposals and make recommendations to the Government
Process to date Councils asked to prepare FFTF proposal by 30 June
Fit Access benefits and funding
Not Fit (But have S&C)
Not Fit (No S&C)
Strengthening regional NSW
Joint Organisations $5.3 million to establish Joint Organisations across regional NSW from September 2016 The Office is working with five pilot organisations to help develop the final model, in consultation with the sector The Greater Sydney Commission will be working with local councils to address regional issues in the metropolitan area
Five Pilot regions Namoi Councils 7 councils Priorities include infrastructure to improve access to employment, services and markets, developing a regional investment prospectus
Central NSW Councils 13 councils Priorities include transport, health and education, secure water supply, Broadband
Hunter JO 10 councils Priorities include regional growth plan, transport, tourism
Riverina JO 14 councils Priorities include transport, improving access to quality water and wastewater services, regional growth and land use planning
Illawarra JO 4 councils Priorities include regional planning, infrastructure, transport, access to jobs
Role of Joint Organisations Joint Organisation Regional Strategic Planning
InterGovernmental collaboration
Regional Leadership and advocacy
Strategic Capacity Building Service Delivery Other
*Evolved from model suggested by the Independent Local Government Review Panel
The benefits of regional collaboration Infrastructure
Planning
Co-ordinated approach to infrastructure upgrades e.g. freight routes, airports and water supply
Opportunities to be involved in developing Regional Growth Strategies and to connect local priorities with State Planning
Economic development
Advocacy
More opportunities to attract investment, improve supply chain and grow employment
A stronger voice to raise regional issues and identify funding opportunities
JO Pilot process and progress to date Sep 14 FFF announced Roadmap released
Dec 14 Pilot regions selected
Pilot Workshops - Central - Five Regions
Feb 15 Pilots Begin - JO Charter - Action Plan - Priorities
Mid-Pilot Workshop
Final Workshop & Evaluation
- Action Plans - JO Models
Workshop Outcomes Report
Core JO Model and Tools for Pilot
Dec 15
Early 2016
Sep 2016
Pilot Evaluation Completed
Final JO Legislative Model Designed
Pilot Tools
State and Local Government work together to pilot JOs
JOs roll out
Helping rural councils The Fit for the Future program is also helping small rural councils to explore new structures and ways of working. These councils can gain access to a $4 million Innovation Fund. The fund will help them to develop opportunities such as sharing resources/administration, exploring new technologies for remote communities, or improving the way that services are delivered.
Working with the Far West Communities in Far West NSW face particular challenges and the Panel recommended a special approach for this region. The Office is working with the Department of Premier and Cabinet to help find long-term solutions for service delivery in the Far West region. We are also supporting Far West councils to participate in the Fit for the Future program.
Implementing the reforms July – December 2015
January – September 2016
Review Fit for the Future proposals
Regional Joint Organisations
Joint Organisations
IPART reviews councils’ Fit for the Future proposals and makes recommendations to the Government by late October.
Pilot process is reviewed and final model developed. Legislative amendments completed
Joint Organisations are rolled out to remaining regional areas.
Regulatory Burden Review
Structural changes
IPART undertakes a review of the regulatory and compliance burdens on councils
Councils implement their Fit for the Future Proposals. Voluntary mergers begin transition to new entity
Amended Local Government Act Consultation and development work continues for the Local Government Act
Borrowing Facility TCorp finalises the new local government borrowing facility for FFTF councils
Joint Organisation Pilot Process Consultation and development work continues on the final JO model
Amended Local Government Act First round of amendments completed in time for the local government elections
Post LG elections
Working with councils The Office will continue to work closely with councils to support the Fit for the Future reforms. The One Stop Shop and regional relationship managers can help with enquiries and access to funding and support. There will be further opportunities for consultation and collaboration on the new Local Government Act and key reforms.
The changing face of NSW councils
The vision for change A modern system of local government, providing quality services and value for money. Strong, connected councils that play an active role in helping communities grow. Sustainable councils that can deliver the infrastructure and services communities need both now and in the future.
Key reform directions Changing the scale of council operations, improving sustainability, performance and efficiency
Improving the way that State and local governments work together
Changing legislation and cutting red tape, making it easier for councils to do their job
Strengthening regional NSW and providing more options for country councils
The journey towards change
Preparing for change 2011
2012
2013
Destination 2036
TCorp Sustainability Review
Councils came together to plan how local government could meet the challenges of the future.
Conducted a comprehensive, independent analysis into the financial sustainability of every council in NSW.
2014
Local Government Infrastructure Audit Provided information in relation to the infrastructure backlog in NSW and identified infrastructure needs by area and asset type.
Independent Local Government Review Conducted wide consultation to develop key recommendations regarding local government structures, governance models and boundary changes.
Local Government Acts Taskforce Looked at ways to modernise legislation, to ensure that it would meet the future needs of councils and communities.
Today Fit for the Future Local Government Will lay the foundations for a stronger system of local government and stronger local communities.
Helping councils get on with the job
The Government’s response The NSW Government has supported the majority of the Independent Panel’s recommendations for reform. These changes will cut red tape, improve councils’ access to resources, make it easier for councils to do business and encourage greater accountability to the community
Key system reforms Amended Local Government Act
State borrowing facility
Built around IP&R, streamlining procurement, simplifying reporting, enabling change
State borrowing facility, from 2015, to help councils who are fit for the future gain access to cheaper finance
Financial reforms
Regulatory burden review
Rating review, review of Financial Assistance Grants distribution, financial sustainability program
A comprehensive review into the regulatory and compliance burden on councils. IPART will make recommendations for change
Governance reforms
Improved transparency
Clarifying the role of Mayors, Councillors and senior staff. New minimum two-year term for Mayors
A new role for the Auditor General to help councils improve performance
Changes within councils
The Panel’s findings The Independent Panel found that some councils would benefit from structural change Councils have been asked to consider the recommendations and prepare a Fit for the Future proposal. Up to $258 m is available to support councils who want to merge voluntarily. IPART will assess the proposals and make recommendations to the Government
Process to date Councils asked to prepare FFTF proposal by 30 June
Fit Access benefits and funding
Not Fit (But have S&C)
Not Fit (No S&C)
Strengthening regional NSW
Joint Organisations $5.3 million to establish Joint Organisations across regional NSW from September 2016 The Office is working with five pilot organisations to help develop the final model, in consultation with the sector The Greater Sydney Commission will be working with local councils to address regional issues in the metropolitan area
Five Pilot regions Namoi Councils 7 councils Priorities include infrastructure to improve access to employment, services and markets, developing a regional investment prospectus
Central NSW Councils 13 councils Priorities include transport, health and education, secure water supply, Broadband
Hunter JO 10 councils Priorities include regional growth plan, transport, tourism
Riverina JO 14 councils Priorities include transport, improving access to quality water and wastewater services, regional growth and land use planning
Illawarra JO 4 councils Priorities include regional planning, infrastructure, transport, access to jobs
Role of Joint Organisations Joint Organisation Regional Strategic Planning
InterGovernmental collaboration
Regional Leadership and advocacy
Strategic Capacity Building Service Delivery Other
*Evolved from model suggested by the Independent Local Government Review Panel
The benefits of regional collaboration Infrastructure
Planning
Co-ordinated approach to infrastructure upgrades e.g. freight routes, airports and water supply
Opportunities to be involved in developing Regional Growth Strategies and to connect local priorities with State Planning
Economic development
Advocacy
More opportunities to attract investment, improve supply chain and grow employment
A stronger voice to raise regional issues and identify funding opportunities
JO Pilot process and progress to date Sep 14 FFF announced Roadmap released
Dec 14 Pilot regions selected
Pilot Workshops - Central - Five Regions
Feb 15 Pilots Begin - JO Charter - Action Plan - Priorities
Mid-Pilot Workshop
Final Workshop & Evaluation
- Action Plans - JO Models
Workshop Outcomes Report
Core JO Model and Tools for Pilot
Dec 15
Early 2016
Sep 2016
Pilot Evaluation Completed
Final JO Legislative Model Designed
Pilot Tools
State and Local Government work together to pilot JOs
JOs roll out
Helping rural councils The Fit for the Future program is also helping small rural councils to explore new structures and ways of working. These councils can gain access to a $4 million Innovation Fund. The fund will help them to develop opportunities such as sharing resources/administration, exploring new technologies for remote communities, or improving the way that services are delivered.
Working with the Far West Communities in Far West NSW face particular challenges and the Panel recommended a special approach for this region. The Office is working with the Department of Premier and Cabinet to help find long-term solutions for service delivery in the Far West region. We are also supporting Far West councils to participate in the Fit for the Future program.
Implementing the reforms July – December 2015
January – September 2016
Review Fit for the Future proposals
Regional Joint Organisations
Joint Organisations
IPART reviews councils’ Fit for the Future proposals and makes recommendations to the Government by late October.
Pilot process is reviewed and final model developed. Legislative amendments completed
Joint Organisations are rolled out to remaining regional areas.
Regulatory Burden Review
Structural changes
IPART undertakes a review of the regulatory and compliance burdens on councils
Councils implement their Fit for the Future Proposals. Voluntary mergers begin transition to new entity
Amended Local Government Act Consultation and development work continues for the Local Government Act
Borrowing Facility TCorp finalises the new local government borrowing facility for FFTF councils
Joint Organisation Pilot Process Consultation and development work continues on the final JO model
Amended Local Government Act First round of amendments completed in time for the local government elections
Post LG elections
Working with councils The Office will continue to work closely with councils to support the Fit for the Future reforms. The One Stop Shop and regional relationship managers can help with enquiries and access to funding and support. There will be further opportunities for consultation and collaboration on the new Local Government Act and key reforms.
