Councillor Guide - Division of Local Government - NSW Government

COUNCILLOR GUIDENSW DEPARTMENT OF LOCAL GOVERNMENTIN COOPERATION WITHTHE LOCAL GOVERNMENT ASSOCIATION OF NSWAND THE SHIRES ASSOCIATION OF NSW

ACCESS TO SERVICESThe Department of Local Government is located at:Levels 1 & 25 O’Keefe Avenue Locked Bag 3015NOWRA NSW 2541 NOWRA NSW 2541Phone 02 4428 4100Fax 02 4428 4199TTY 02 4428 4209Level 9, 323 Castlereagh Street Locked Bag A5045SYDNEY NSW 2000 SYDNEY SOUTH NSW 1235Phone 02 9289 4000Fax 02 9289 4099Email dlg@dlg.nsw.gov.auWebsite www.dlg.nsw.gov.auOFFICE HOURSMonday to Friday8.30am to 5.00pm(Special arrangements may be made if these hours are unsuitable)All offices are wheelchair accessible.ALTERNATIVE MEDIA PUBLICATIONSSpecial arrangements can be made for our publications to be provided in largeprint or an alternative media format. If you need this service, please contact ourExecutive Branch on 02 9289 4000.DISCLAIMERThe material contained in this publication is based upon information provided tothe Department by councils. While every effort has been made to ensure theaccuracy of the information in this publication, the Department of LocalGovernment expressly disclaims any liability to any person in respect ofanything done or not done as a result of the contents of the publication or thedata provided.© NSW Department of Local Government 2008ISBN 1 920766 79 0Produced by the Department of Local Governmentwww.dlg.nsw.gov.au

FOREWORDFROM THE PRESIDENTS OF THE LOCAL GOVERNMENTASSOCIATION OF NSW AND THE SHIRES ASSOCIATION OFNSWLocal Government, as the closest sphere of government to thecommunity, plays a crucial role in delivering essential services toresidents. The sector is also actively involved in issues affectingcommunity wellbeing, such as environmental sustainability, economicdevelopment, planning and social matters.Councillors are a much-needed link between councils and the community.As democratically elected representatives, councillors are advocates forthe community, and protect their interests. They also communicate theirneeds and concerns to other spheres of government, industry and themedia.Councillors are elected for their strong leadership skills, integrity andcommitment to serving their community. Being a councillor is anextremely challenging and satisfying experience and provides a uniqueopportunity to not only interact with the community, but also to influencethe vision and strategic direction of council areas.For many years, the Associations have encouraged the professionaldevelopment of councillors to ensure their effectiveness both as amember of a governing body and an elected representative. We are verypleased to be working in partnership with the Department of LocalGovernment to create a publication that will guide and support youthrough your term as a councillor.The Councillor Guide is a valuable tool for anyone interested in the rolesand responsibilities of a councillor, as well as the structure of LocalGovernment. We welcome your feedback on the guide and trust that youwill find it useful and informative.Cr Genia McCafferyCr Bruce MillerPresidentPresidentLocal Government Association of NSW Shires Association of NSWCOUNCILLOR GUIDE PAGE 2

CONTENTSForeword 1Minister for Local Government 1Presidents of the Local Government Association of NSWand the Shires Association of NSW2Section 1 – An Overview of Local Government in NSW 71.1 Local Government 71.2 Legal framework 81.2.1 Limited legal protection 91.3 Council’s Charter 101.4 A council’s structure 111.5 Services and functions that councils provide 121.5.1 Why does local service provision vary between councils? 131.6 How are councils funded? 14Section 2 – Roles, Responsibilities and Relationships 152.1 Roles and responsibilities 152.1.1 Role of a councillor 152.1.2 Role of the mayor 182.1.3 Role of the general manager 192.1.4 Role of council staff 192.1.5 Role of the Minister for Local Government and theDepartment of Local Government202.1.6 Role of the Local Government Association of NSW andthe Shires Association of NSW212.1.7 Role of Local Government Managers Australia (NSW)(LGMA)212.2 Managing internal council relationships 222.2.1 Relationship between the mayor and the general manager 222.2.2 Relationship between councillors and the generalmanager222.2.3 Relationships between councillors and staff 24COUNCILLOR GUIDE PAGE 3

2.3 Managing external relationships 252.3.1 The importance of community consultation 252.3.2 Accountability 272.3.3 Other external relationships 282.4 Effective decision making 292.4.1 Meeting papers 302.5 Risk management 312.6 Other resources 33Section 3 – Code of Conduct and Acting Ethically 343.1 The Code of Conduct 343.2 Conflicts of interest (pecuniary and non-pecuniary) 363.2.1 Political donations 383.2.2 Gifts and benefits 383.2.3 Access to information and resources 383.2.4 Appropriate lobbying 393.2.5 Reporting breaches 403.3 Councillors and public comment 40Section 4 – Making the Most of Meetings 424.1 How councils debate and make decisions 424.2 How often council meetings are held and how they areconducted4.3 Different types of council meetings 474.4 Other resources 4942Section 5 - Sound Planning and Reporting 505.1 Strategic planning 505.1.1 The proposed strategic planning and reporting system 525.1.2 Roles and responsibilities of the mayor and councillors instrategic planning5.1.3 Assessing strategic plans 5554COUNCILLOR GUIDE PAGE 4

Acknowledgements 80Appendix I – Skills and knowledge checklist 81Appendix II – Key organisations, resources andlegislation85Appendix III – Dealing with the media 98Appendix IV – Tips for effective community consultation 100Appendix V – Sustainability 102Appendix VI – Councillor Guide feedback form 107INDEX OF TABLES AND DIAGRAMSThe three spheres of government 7A council’s structure 11Services and functions that councils provide 12Role of the council’s governing body 17System of local government in NSW 20Risk management 31Key principles of the Model Code of Conduct 35Sources of revenue of NSW councils for 2006/07 61COUNCILLOR GUIDE PAGE 6

SECTION 1AN OVERVIEW OF LOCAL GOVERNMENT IN NSW1.1 Local GovernmentLocal government is often called ‘the third sphere’ of government inAustralia. It is an elected system of government directly accountable tothe local community.Each council is an independent, statutory corporation responsible foradministering the local government area over which it has jurisdiction.Leadership of councils is provided by ‘the council’. This is all of theelected representatives, or councillors, who work together to provide goodgovernance for the benefit of their local community.Councils are responsible for certain activities within their areas such asland use planning and development and building construction. Councilsalso have the power to order people to do certain things such as demolisha building or restrain a dog. They can also issue orders to ensure thatpublic amenity is not compromised, for example, to prevent a noisenuisance, or the operation of an inappropriate business in a residentialarea.The Three Spheres of Government(including examples of typical responsibilities)For further information about the specific services provided by councils, see theServices and functions that councils provide section, on page 9.COUNCILLOR GUIDE PAGE 7

1.2 Legal frameworkCouncils work within the laws established by the NSW Parliament. TheLocal Government Act 1993 (the Act) provides a legislative frameworkreflecting modern community expectations and gives councils broadpowers to plan for and provide local community services and facilities.The Act is administered by the Minister for Local Government through theDepartment of Local Government.Councillors have a wide range of legislative responsibilities withwhich they need to acquaint themselves.As well as the Act there are a number of other laws which councils areresponsible for implementing. For example, councils have responsibilitiesfor animal control under both the Companion Animals Act 1998 and theImpounding Act 1993; for building and development controls under theEnvironmental Planning and Assessment Act 1979; for environmentalprotection under the Protection of the Environment Operations Act 1997;for the control of noxious weeds under the Noxious Weeds Act 1993, andfor the provision, maintenance and management of roads under theRoads Act 1993.Councils are both constrained and enabled by this legislative framework.Although the Local Government Act 1993 provides councils with broadservice powers, if a council takes action or makes a decision without thenecessary legislative authority, it may be held by a court of law to beacting beyond its power. If a council’s power is not exercised in themanner prescribed by Parliament, it may be deemed not to have beenexercised at all.Councils must take care to exercise their powers properly.Otherwise their decisions, and any resultant actions, may bedeclared void by a court, often with consequent financial loss.When a council has to make a decision involving a value judgement, itmust do so with fairness and justice. Natural justice requires that thedecision be unbiased and that everyone whose rights and interests areaffected is given an opportunity to express their views before the decisionis made. Adequate notice of the decision should also be given so that anyright to be heard can be exercised.COUNCILLOR GUIDE PAGE 8

A council may be liable for actions carried out negligently that result indamage or injury to persons or property. This liability extends to theactions of employees or other people to whom the council’s functionshave been delegated. However councillors and employees will not incurpersonal liability where the matter complained of was done in “good faith”for the purpose of executing any Act. “Good faith” can be broadly definedin this context as something done honestly.1.2.1 Limited legal protectionThe Local Government Act 1993 provides councillors with a level ofprotection from civil liability action for undertaking council-related andcouncil-endorsed activities as a councillor.Protection from civil liability is only provided where a councillor’sactions are undertaken in the manner referred to in the relevantsections of the Act, including in good faith and for purposes relatedto council activities.Councillors must read and understand sections 731, 732 and 733 of theAct, which provide protection. In the event that a councillor does notunderstand an issue, it is the obligation of that councillor to seek and beguided by their own legal advice.In relation to defamation action, a council may be sued for defamation,although it cannot itself sue for defamation. Individual councillors andcouncil employees may also be sued for defamation, whether in theirprivate or public capacities.Generally speaking, councillors at meetings of council (or councilcommittees) are protected from defamation by the defence of ‘qualifiedprivilege,’ but only to enable them to speak freely and publicly inundertaking their duties in council meetings. Any comment or statement acouncillor makes at a council meeting must be relevant to the councilbusiness, made in good faith and without malice.COUNCILLOR GUIDE PAGE 9

1.3 Council’s CharterAll councillors should read and be familiar with their Council’sCharter, which sets out the principles that guide a council in carryingout its functions.The Local Government Act 1993 includes a Council’s Charter (section 8).This sets out the things councils need to consider when carrying out theirresponsibilities:• providing directly, or on behalf of other levels of government,adequate, equitable and appropriate services and facilities for thecommunity• ensuring that provided services are managed efficiently andeffectively• exercising community leadership• exercising its functions in a manner that is consistent with andactively promotes the principle of multiculturalism• properly managing, developing, protecting, restoring, enhancingand conserving the environment of the area for which it isresponsible, in a manner that is consistent with and promotes theprinciples of ecologically sustainable development• having regard for the long term and cumulative effects of itsdecisions• having regard to acting as the custodian and trustee of publicassets• effectively accounting for and managing the assets for which it isresponsible• facilitating the involvement of councillors, members of the public,users of facilities and services and council staff in the development,improvement and coordination of local government• raising funds for local purposes by way of rates, charges and fees,investments, loans and grants• keeping the local community informed about its activities• ensuring that, in the exercise of its regulatory functions, it actsconsistently and without bias• being a responsible employer.While following this Charter, in reality councils do far more than this. Theypursue their communities’ visions and ideas, provide leadership, assistcommunity-based organisations to provide services to local communities,and express local ideas and concerns about important issues to otherlevels of Government. A community also often looks to its council toprotect it from potential natural dangers, and for support in times of need.COUNCILLOR GUIDE PAGE 10

1.4 A council’s structureCOUNCIL’SGOVERNING BODYCouncillors• Setting strategy• Monitoring performance•Providing policy framework• Allocating financial resourcesCOUNCIL’S ADMINISTRATIVE BODYGeneral ManagerSenior Staff and Staff• Implementation of strategy and policy• Ensuring complianceBetween five and fifteen elected councillors hold office as ‘the council’ forfour years. The elected council’s role may be compared to that of theboard of a public company, to the extent that it oversees the activities ofthe council but is not involved in the day-to-day running of the council. Akey difference is that the “shareholders” are the local community. Theyare larger in number and have a more diverse range of needs andexpectations than most public companies.Many councils also delegate functions to specialist committees thatinclude councillors, council staff and members of the public. Suchcommittees provide councillors with the opportunity to participate incouncil decision-making at a more detailed level.Councils employ staff to administer the council. The general manager isthe most senior member of staff and is responsible to the council forcarrying out council decisions and policy and overseeing the day-to-dayoperation of the council.The general manager provides the link between the elected counciland its employees. While all council staff have a duty to carry outcouncil decisions they are responsible to the general manager, notthe councillors. Individual councillors cannot direct staff in their dayto-dayactivities.COUNCILLOR GUIDE PAGE 11

1.5 Services and functions that councils provideCouncils provide a very wide range of services and functions. Broadly,these may be grouped into five categories, as shown below.Examples of services that fall into each of these categories are below.These represent a sample only.Providing and maintaining infrastructureProviding an appropriate and affordable level of infrastructure is oneimportant contribution a council makes to its community. For example,councils provide and maintain local roads, bridges, public car parks,footpaths, sporting fields, parks and art galleries. Councils are alsoresponsible for connections to water and sewerage. Councils mustconsult with their local community about providing and maintaining thesepublic assets.Planning for sustainable developmentCouncils have a major role in providing long term strategic planning for alocal government area as well as town planning, zoning and subdivisions.In addition, councils are responsible for processingdevelopment applications, for building site and compliance inspections,and for ensuring compliance with building regulations.COUNCILLOR GUIDE PAGE 12

Protecting the environmentCouncils also have a major role in helping to protect the environment.They have responsibilities under the Protection of the EnvironmentOperations Act 1997 and can issue various protection of the environmentnotices including clean up, prevention, compliance cost, provision ofrecords and information and noise control notices.Councils regularly assess the state of their local environment, provideenvironmental programs and use their regulatory powers to preventpollution, or restore degraded environments.Councils also have environmental protection responsibilities under otherlegislation. For example, councils are responsible for noxious weedcontrol under the Noxious Weeds Act 1993. They also carry out activitiesto preserve access and amenity to the environment, such as recycling,management of vegetation including bush land reserves, street cleaning,regulating parking, and controlling dogs and cats (or companion animals).Supporting community developmentCouncils regularly consult with and assess the needs of their communitywith a view to supporting community development. They provide a rangeof services, including some aimed at groups in the community withspecial needs. Community services include libraries, sport and recreationfacilities, home care services such as ‘meals on wheels’, swimming pools,playground facilities and child care centres.Safeguarding public healthCouncils help maintain high standards of public health and reduce the riskof exposure to a wide range of diseases through activities such as foodshop inspections, waste disposal, pest and vermin control and hazardousmaterial containment.1.5.1 Why does local service provision vary between councils?While in theory councils can choose the range and quality of servicesthey provide, in practice services may be limited depending on localfactors including:• availability of finance to fund certain services• size, location and demographics of a local government area• commitment to maintaining existing services• the views, wishes and needs of the community.Councils discuss service provision in meetings that are generally open tothe public.COUNCILLOR GUIDE PAGE 13

1.6 How are councils funded?On average, councils receive 47% of their regular income from ordinaryland rates, which is an annual levy paid by landowners. Councils can alsocharge for services such as waste management, and water supply andsewerage (outside metropolitan areas). Charges must be usedspecifically for the purposes for which they are collected.Councils can get additional income from fees for the use of publiclyowned facilities like swimming pools, halls and other user-pays services.Fees can also be charged for giving information, supplying products orprocessing applications.All councils receive a financial assistance grant every year, which is paidby the Commonwealth Government through the State Government. Theamount of the grant varies from council to council. Councils receivegrants from other sources from time to time. For example, the NSWRoads and Traffic Authority may make a grant for work on a particularroad.Councils may also borrow funds for any purpose. Councils can also investfunds and receive income from the interest. Ministerial Investment andBorrowing Orders and associated guidelines provide the framework underwhich councils can invest and borrow.Council revenue is discussed in further detail in Section 6 – FinancialManagement.COUNCILLOR GUIDE PAGE 14

SECTION 2ROLES, RESPONSIBILITIES ANDRELATIONSHIPSThe importance of trust and mutual respect within the council teamand between council and senior management cannot beunderestimated.Councillors can have a major and positive impact on the health and wellbeingof the whole community. The roles of key people in councils,including councillors and the general manager, are defined in the LocalGovernment Act 1993 and are discussed in detail below.A good working relationship between councillors, the mayor, the generalmanager and other council staff is fundamental to an effective council.Councillors must also have an understanding of how to manage externalrelationships, with the community, the media, and other organisationsincluding State Agencies.2.1 Roles and Responsibilities2.1.1 Role of a councillorThe Act divides the role of a councillor into two broad categories:1. As a member of the governing body council to:• direct and control the affairs of the council in accordance withthe Act• allocate the council’s resources in the optimum way to benefitthe area• play a key role in the creation and review of the council’spolicies and objectives and criteria relating to the exercise of thecouncil’s regulatory functions• review the performance of the council and its delivery ofservices, and the management plans and revenue policies ofthe council.2. As an elected person to:• represent the interests of residents and ratepayers• provide leadership and guidance to the community• facilitate communication between the community and thecouncil.COUNCILLOR GUIDE PAGE 15

What does a councillor do as a ‘member of the governing body?One of the most important roles of a councillor is to participate inpolicy decision-making on behalf of the community.This involves working as part of a team of councillors to make decisionsand policies that guide the activities of the council. Broadly speaking,policies can be defined as the principles and intent behind the programsthat a council implements.This includes setting the broad, strategic direction for the localcommunity. In order to do this councillors have to understand theircommunity, its characteristics and needs, as well as the types of servicesrequired to meet these needs.The “Role of the Council’s Governing Body” model on the following pageillustrates the key responsibilities of the council in working with andthrough the general manager to:• develop the policy framework for their council in relation to thecouncil’s regulatory functions• develop and oversee the delivery of the council’s strategic plansthat shape the future direction for the local area• make financial decisions about the funding of services andfunctions• make sure that the council is fulfilling its regulatory functionsappropriately• make sure that the general manager, through performancemeasurement in his or her employment contract, carries out all ofcouncil’s policies, plans and strategies appropriately.• provide accountability to the community by reporting on theoutcomes of council’s activities.In doing all of these things councillors must consider the Council’sCharter as outlined in Section 1 of this publication.Council will benefit by analysing its activities from time to time, includingasking how is it spending its time, where should its priorities be and doesit have the balance of its priorities right?COUNCILLOR GUIDE PAGE 16

The Role of Council’s Governing BodyEXTERNALRESPONSIBILITIESCOMPLIANCE(PAST & PRESENTORIENTATED)Provide accountabilityMaking open and transparentdecisions through regularreporting.Ultimately via electionsPERFORMANCE(FUTURE ORIENTATED)Strategy formulationStrategic PlanLong term Financial PlanLong term Asset ManagementWork with and through thegeneral managerINTERNALRESPONSIBILITIESMonitoring and supervisingActivities of Administrative bodyPolicy settingApproving policy framework foradministrative bodySource: Robert I Tricker International Corporate Governance: Text Readings and Cases,New York: Prentice Hall, 1994, p. 149What does a councillor do as ‘an elected representative’?A councillor’s role as a democratically elected representativeprovides an essential link between the community and council.This involves representing the interests of the community, providingleadership, and communicating and promoting the interests of the councilto other spheres of government and relevant bodies.Councillors have a responsibility to represent the broad needs and wishesof the whole community in making decisions about the provision ofservices and the allocation of resources, not merely the interests ofspecial groups who may help get councillors elected, no matter how validthe issues of such groups may be.Councillors also need to provide leadership and guidance to thecommunity. This is especially important when communities facechallenges, such as climate change, drought, high unemployment or skillshortages.COUNCILLOR GUIDE PAGE 17

How do councillors balance their dual roles?Councillors may hold particular views on certain issues, and may considertheir views to have been endorsed by the community that elected them.However, councillors must attempt to find a balance between theobligation to represent the interests of individual constituents and theneed to make decisions on behalf of the whole community. This dilemmacan cause some interesting debates in council.Councillors need to display leadership and integrity to help ensurethat the decisions they make as a member of the governing bodyare in the best interest of all the community.Councillors can best help individual members of the community bysatisfying themselves that their council’s policies are being carried outcorrectly. If a councillor thinks that a policy needs changing they need todebate this in a full meeting of council. It is not appropriate for a councillorto informally attempt to arrange for a council policy to be ignored or actedupon differently, following the demands or wishes of a resident orratepayer.As the community expects every councillor to provide representation inrelation to all council activities and responsibilities it is important that theyquickly become familiar with the whole council area and the importantissues affecting their community.Councillors may find Appendix I - Skills and Knowledge Checklist usefulin assisting them to identify the skills and knowledge they need to performtheir role effectively.2.1.2 Role of the mayorThe mayor is considered to be the voice of the council and theleader of the community.The mayor’s role is essentially the same as that of other councillors.However, in addition, under the Local Government Act the role of themayor is to:• where necessary, exercise urgent policy-making functions of thegoverning body of the council between meetings of the council• exercise such other functions of the council as the councildetermines• to preside at meetings of the council• carry out the civic and ceremonial functions of the mayoral office.COUNCILLOR GUIDE PAGE 18

2.1.3 Role of the general managerWhile Council is responsible for formulating and monitoring theimplementation of policy relating to the exercise of council functions,the general manager is responsible for implementing policy.The general manager is the most senior employee of a council and is theonly member of staff selected and appointed by councillors. The generalmanager is appointed on a renewable, fixed term, performance-basedcontract for a maximum of five years.Under the Act the general manager’s responsibilities include:• efficient and effective operation of the council organisation and dayto-daymanagement. This includes ensuring council decisions andpolicies are implemented• appointing, directing and dismissing staff in accordance with anorganisational structure and resources approved by the council• implementing council’s equal employment opportunity managementplan• exercising other functions as delegated by the council.The general manager may, in turn, delegate functions to other staff.2.1.4 Role of council staffCouncils, like other organisations, employ professional staff such as townplanners, engineers, building surveyors and librarians. These employeesadvise the general manager. The general manager may, in turn, advisethe elected councillors. Council staff administer the day-to-day operationsof the council, and implement council policies and other decisions.The general manager is responsible for the day-to-day management ofthe council and is the primary link between the elected body and itsemployees.While council staff have a duty to implement council decisions, they areresponsible to the general manager, who in turn is responsible to thecouncil.COUNCILLOR GUIDE PAGE 19

2.1.5 Role of the Minister for Local Government and the Departmentof Local GovernmentThe Minister for Local Government is responsible for overseeing localgovernment in NSW, including the administration of the LocalGovernment Act under which local councils and county councils operate.The Minister ensures councils operate within the law and in line with theNSW State Government’s policies relating to local government.The diagram below shows the relationship between NSW State and LocalGovernments and the community:System of Local Government in NSWLOCAL COMMUNITYCOUNCIL’SGOVERNINGBODYCouncillorsCOUNCIL’SADMINISTRATIVE BODYGeneral ManagerSenior Staff & StaffNSWStateParliamentMinisterOtherforStateLocalGovernmentGovernmentMinistersDepartmentOther Stateof LocalGovernmentGovernmentDepartmentsOTHER COUNCILS ANDCOUNCIL ORGANISATIONSThe Department has a legislative role in regulating the localgovernment sector and an equally important role of supporting andcontributing to a strong and sustainable local government sector.The Department of Local Government is the NSW Government agencythat carries out the Minister’s directions on areas such as:• developing and reviewing legislation• providing advice and information on local government issues• regulating, monitoring and evaluating councils’ financialperformance• improving local government performance through working with localcouncils, issuing guidelines, reviewing council operations andinvestigating issues or complaints.COUNCILLOR GUIDE PAGE 20

The Minister may direct the Department to formally investigate a council ifthere is a serious allegation made against it. If, after a formalinvestigation, the Minister decides that a council has failed in its duties insome way, the council may be ordered to improve its performance or itmay be cautioned. Under serious circumstances and after a publicinquiry, the Governor of NSW may decide to dismiss the councillors andreplace them with an administrator.The NSW Ombudsman, the Independent Commission AgainstCorruption, and the Commissioner of Police also have investigativepowers in relation to local councils.2.1.6 Role of the Local Government Association of NSW and theShires Association of NSWThe Local Government Association of NSW and the Shires Association ofNSW represent 152 general purpose councils and 14 special purposecouncils.Together, the Associations represent the views of their members bypresenting councils’ to State and Federal governments, promoting LocalGovernment to the community and providing specialist advice andservices.The Associations’ annual conferences are important opportunities forcouncillors to be updated about important issues for Local Government,to vote on policy directions and to network with other councillors.2.1.7 Role of Local Government Managers Australia (NSW) (LGMA)Local Government Managers Australia (NSW) is the peak body for localgovernment professionals and managers. It seeks to ensure theorganisation and its members are industry leaders and are at the forefrontof good practice, change, innovation and the continuous improvement oflocal government.The goal of LGMA is to provide advocacy, leadership, learning andsupport for members. It represents and supports professional practice byupholding a code of ethics and assists its members with a range ofproducts and services.Further information and contact details for these organisations and otherkey state government agencies may be found in Appendix II.COUNCILLOR GUIDE PAGE 21

2.2 Managing internal council relationshipsA good working relationship between councillors, the mayor, thegeneral manager and other council staff is fundamental to aneffective council.The following section provides an overview of the various relationshipsbetween councillors and other internal council officials and staff. Thisissue is dealt with in greater detail in the Councillor ProfessionalDevelopment Program run by Local Government Learning Solutions.2.2.1 Relationship between the mayor and the general managerThe relationship between the mayor and the general manager is the mostimportant one in a council and can have a significant impact on thecouncil’s performance. As their relationship is often subject to communityand media scrutiny it is important for the mayor and general manager tohave a transparent and supportive working relationship. Should conflict orsignificant differences of opinion arise, both the mayor and the generalmanager should work to ensure that they are resolved in a timely manner,and not in the public eye.The mayor and general manager also play an important role in ensuringthat councillors and officials are acting in an ethical manner. The mayoralso has a key role in the appointment of the general manager andtherefore requires a full understanding of the general manager’s role andresponsibilities.2.2.2 Relationship between councillors and the general managerFormally, this relationship is managed through the general manager’scontract of employment. Performance management is an essential part ofgood management practice. It provides not only a means to monitor thecouncil’s performance but also a means to recognise and reward goodperformance and to manage under-performance.Performance management through the general manager’s contractis the means by which a council and general manager can reach amutual understanding of expectations, and a process through whichan assessment can be made as to whether the expectations havebeen met, exceeded, or remain unmet.COUNCILLOR GUIDE PAGE 22

While there may be instances where immediate action is necessary, itis generally expected that termination of a contract on the basis ofpoor performance would be the last resort.The confidentiality of the review process, including the paperwork andsubstance of the review, needs to be maintained carefully as muchprivate and personal information will be discussed. In some instancesthe information may be potentially damaging.Performance management guidelines developed by LGMA inconsultation with the Associations are available for download from theDepartment’s website: www.dlg.nsw.gov.au.2.2.3 Relationships between councillors and staffIndividual councillors do not have the right to direct council staff intheir day-to-day activities.The general manager is the crucial link between councillors and staff.Generally, requests for assistance or information should go through thegeneral manager, except where he or she has authorised another councilofficer to undertake this role.Similarly, if a staff member needs to talk with a councillor or the mayor,approval should be obtained from the general manager or the appropriateauthorised officer. Where authority is given to another council officer, it isthe general manager’s responsibility to monitor, as far as practicable, thatthe policy is being observed.There are some exceptions to this rule. In some situations it may beappropriate for councillors to make direct requests of staff or staff tocontact councillors directly, for example, where the matter is astraightforward administrative one that can be dealt with as part of routinework, such as requesting a copy of a report that was distributed with lastmonth’s business paper. There should be a formal council policyidentifying where direct contact without prior approval is acceptable.Personal interaction between councillors and staffThe Department’s Model Code of Conduct governs the interactionsbetween councillors and staff that relate to council business while theyare undertaking their public duties. However, the Model Code does notprevent councillors and staff communicating. It is a normal part ofcommunity life that council staff and councillors would be, from time totime, present at the same social or community events. However, in suchsituations both parties should ensure that council business is notdiscussed.The Model Code of Conduct is discussed in further detail in section 3.1.COUNCILLOR GUIDE PAGE 24

2.3 Managing external relationships2.3.1 The importance of community consultationWhile participatory democracy is an important part of localgovernment decision-making it is essential that councils have aclear, robust and structured community engagement process inplace. This helps ensure that the best decisions are made for thewhole community, including “the silent majority”.Councillors are the representatives of the community. Therefore, they areaccountable to the community. It is important that the community is ableto contact and meet with councillors to discuss and contribute their viewsand ideas. Councillors should therefore spend time undertaking formaland informal community consultation. This helps ensure that a council’spolicies and programs are acceptable to and meet the needs of thecommunity.When a council is developing important policies, strategies and plans, forexample, a council’s annual management plan and budget, it is requiredby law to put the drafts on public exhibition and take into considerationany comments or submissions made by members of the public andorganisations.The Local Government Act 1993 also contains important mechanisms toenable a council to more formally consult with its community. Forexample, a council may conduct a poll on an important issue to get anunderstanding of the community’s views on a matter, such as whether toimpose an environmental levy.Councils may also hold constitutional referendums on some matters suchas whether to increase or decrease the number of councillors, whether todivide an area into wards or abolish wards or to change the method ofelection of the mayor.Effective consultationThe community engagement process needs to be robust,collaborative, inclusive and sustainable.Consultation is a mechanism to assist councillors to understand andincorporate the public will and community concerns into decision-making.Consultation should not be viewed as a “box ticking” exercise, orsomething that is only undertaken to placate the vocal minority.COUNCILLOR GUIDE PAGE 25

Good consultation involves a two-way flow of information. Consultationcan be a very effective way of increasing community understanding of anissue, and a way to increase support for council policies and decisions.Councils should ensure that the consultation process is robust,collaborative and inclusive. They can do this by clearly defining the issuesin question, identifying all relevant stakeholders and giving them theopportunity to participate, and by allocating sufficient time to the process.Councils should also provide clear feedback to the community on theoutcomes of any consultation.This can help councils to ensure the sustainability of communityconsultation. If community members feel that they have the opportunity toactively participate in consultation and that their participation ismeaningful, they may be more willing to participate in the process in thefuture.More information about effective consultation is included in Appendix IV –Tips for Effective Consultation.Methods for consulting with the communityWhile councillors are generally constrained by the inherent costsassociated with undertaking large-scale consultation, the followinginformation is provided as a guide to the various methods of smaller scaleconsultation available to councillors.Consultation will only provide the views of a sample of the community.When planning consultation consideration should be given to what is themost appropriate form of contact for the audience and the circumstances.Different methods of consultation include:• Face to face – Public meetings are the most common method ofsharing information. They are a useful way to provide members ofthe community with direct access to the councillors. However, caremust be taken to ensure that meetings are held in public venuesappropriate to the size and make up of the audience. Meetingsshould also be well-facilitated and conducted in a structured andorderly fashion. Options include small, targeted meetings; large,open public meetings; or a series of ongoing meetings.• Surveys – Surveys can be useful for collecting information from asmall sample of the community on specific issues. However, theusefulness of surveys can be limited for community members whohave literacy or language difficulties.• Letter writing – Letters can take the form of formal mass mail outsto a broad cross-section of the community or smaller scalepersonal letters to targeted groups and individuals. Letters shouldbe well-researched and appropriate in content and style. Likesurveys, the usefulness of letter writing can be limited forcommunity members who have literacy or language difficulties.COUNCILLOR GUIDE PAGE 26

• Telephone – The telephone can be a useful way of directlycontacting individual members of the community. It is particularlyuseful in the case of targeted consultation, as the more broad scaletelephoning of individuals can be a time consuming exercise.Consideration should be given to the timing and appropriateness ofphone contact as many people consider this invasive, particularlyevening calling. The usefulness of telephone consultation can alsobe limited for members of the community who experience languageand speech difficulties.Additional resources on community consultationThe NSW Department of Planning has produced a number of resourceswhich can assist councils in developing effective community consultationprograms. These include:• Ideas for Community Consultation – A discussion on principles andprocedures for making consultation work. A copy can bedownloaded from:http://www.planning.nsw.gov.au/planfirst/pdf/principles_procedures_final.pdf.• Community Engagement in the NSW Planning System – Thisdocument relates primarily to the consultative requirements forcouncils under the Environmental Planning and Assessment Act1979, but also provides a wealth of useful information aboutgeneral consultation. A copy can be downloaded from:http://203.147.162.100/pia/engagement/intro/print.htm.2.3.2 AccountabilityCouncillors are accountable to the community through consultation,open and transparent decision-making, as well as regular planningand reporting.Ultimately, councillors are accountable to the community on Election Dayevery four years. However, at all times, council decision-making shouldbe transparent. Fundamentally, community consultation processes aredesigned to promote a culture of accountability on the part of thecouncillors to their local community.Implicitly, the needs of the community should be reflected in the decisionsof council.COUNCILLOR GUIDE PAGE 27

Councils must regularly provide information to the public, whichdemonstrates:• the council is being administered in accordance with the Act• the council is allocating resources consistent with its vision andstrategic plan as well as the corporate objectives stated in themanagement plan• the performance of the council is monitored and reviewed to ensurethe council objectives are being pursued• the interests of all the community is served• each councillor is acting with integrity.Further information about reporting requirements for councils can befound in Section 5 - Sound Planning and Reporting.2.3.3 Other external relationshipsBuilding and maintaining good working relationships with otherorganisations helps to sustain an effective council. Councils should fosterrelationships with key organisations including other councils, other Stateand Federal government agencies, representative and industry bodies,and local industry and local community organisations.The contact details for a number of key organisations and a briefdescription of their roles are contained in Appendix II - Key organisations,resources & legislation.Strategic collaborationStrategic collaboration is an umbrella term for how councils worktogether. Collaboration can take many forms including alliances,partnerships and business clusters. Its purpose is to reduce duplication ofservices, provide cost savings, access innovation, enhance skillsdevelopment and open the way for local communities to share ideas andconnect with others.The Department of Local Government has produced Collaboration andPartnerships between Councils – A guidance paper to assist councils todevelop stronger strategic collaborative arrangements that use resourceswisely to meet their communities’ long term needs. A copy of thecollaboration and partnerships guidance paper can be downloaded fromthe Department’s website: www.dlg.nsw.gov.au.COUNCILLOR GUIDE PAGE 28

2.4 Effective Decision MakingThe great majority of the work councillors are concerned with involvesmaking important decisions about council’s future desired direction anddevelopment. It is critical for all councillors to have the skills andinformation needed to make well-informed decisions that benefit counciland the whole community.In order for councillors to make effective and well informed decisions it isnecessary to understand how to evaluate the range of plans, proposals,strategies and other matters that will constantly be before council.All reports before council should:• Enable councillors to assess council’s ability to achieve itsstrategic goals• Provide information which is linked to council approved strategicor project plans and the budgets that support those plans• Assist councillors in assessing the merits of a proposal, or anyother matter before council, and make well-informed decisions.Prior to making decisions councillors should ask four key questions:• What impact will the decision have on the community (includingresidents and ratepayers) and the environment in both theimmediate and long term?• What impact will the decision have on council’s finances both in theimmediate and long term?• How does this decision fit in with the strategic direction of thecouncil?• Are all of the relevant materials and facts available to make aninformed decision?In addition, specifically in relation to project proposals before the council,the first step in the process is to ensure that the proposal makes senseand that each part is logically supported with sound analysis and actions.Some additional questions to ask include:• Will the performance measures contained in the proposal enablecouncil to adequately monitor its progress and measure if it isachieving the desired outcome?• Does the proposal provide value for money?• Is the cost-benefit acceptable?COUNCILLOR GUIDE PAGE 29

Other important issues relating to decision-making are also covered inSection 5 Sound Planning and Reporting and Section 6 – FinancialManagement.2.4.1 Meeting papersCouncil papers are the ‘tools’ used most often by councillors to makedecisions. Meeting or business papers should be of sufficient quantity andquality to allow all councillors to do their job properly and effectively.All the reports councillors receive should contain sufficientinformation to allow them to be able to assess council’s performanceand make appropriate, well-informed decisions.Common types of council meeting papers are likely to include thefollowing list (although this may vary from council to council):• reports from the general manager• reports from the senior staff in charge of the main functional areasof council such as environmental services, corporate services,engineering, community services, and strategic and commercialservices.• reports on special projects or programs, as well as exceptionalevents or matters which involve council activities or impact oncouncil business.The papers may also include copies of minutes from council committeemeetings.Further information about good meeting practice can be found in Section4 – Making the most of meetings.COUNCILLOR GUIDE PAGE 30

2.5 Risk ManagementThe Local Government Act 1993 was enacted before enterprise riskmanagement was a widely accepted element of good governance. TheAct does however require councils to ensure that the services andfacilities council provides are managed efficiently and effectively (section8) and that the general manager is responsible for the efficient andeffective operation of the council’s organisation (section 335(1)).The Department’s Promoting Better Practice reviews frequently makerecommendations to actively encourage councils to undertake riskmanagement reviews and plans across all functions of council toproactively identify and manage risk exposures.It is now well established that risk management is an essential part ofeffective corporate governance. Risk management is a process throughwhich an organisation can systematically identify the risks to its operation;analyse, evaluate and treat those risks; and implement a systematicprocess for the ongoing monitoring and review of the management of theorganisation’s risks.Risk management has been defined as “the culture, processes andstructures that are directed toward realizing potential opportunities whilstmanaging adverse effects” (Joint Standards Australia/Standards NewZealand Committee. Australia/New Zealand standard, risk management,AS/NZS 4360:2004, 3 rd edition, August 2004).Communication & ConsultationEstablish ContextIdentify RisksAnalyse RisksEvaluate RisksTreat RisksMonitor & ReviewContext: Assessorganisational contextIdentification: What can gowrong?Analysis/Measure: Assesslikelihood & consequencesEvaluate: Compare risks &set optionsTreatment Options: Reduce;avoid; transfer; retainCOUNCILLOR GUIDE PAGE 31

The diagram on the previous page illustrates the cyclical nature of riskmanagement. Councils should continually monitor and review their riskmanagement strategies and practices, and also ensure that effectiveconsultation is undertaken in all stages of the process.By understanding the potential risks they face, councils are betterprepared to take appropriate action to minimise the impact of adverserisks and maximise opportunities to benefit from positive risks.Good risk management should be forward looking and assist inmaking good business decisions.Through proactive risk management treatment the following outcomescan be achieved:• Higher level of service delivery• More efficient, effective and economic allocation of resources• Improved responsiveness and flexibility• Increased accountability and transparency.The administrative body of council, led by the general manager, hasprimary responsibility for the design and operation of the riskmanagement and internal control framework of the council. However,good governance in local government relies on the robust independentreview of management, finances, risks and operations by council’sgoverning body and a properly constituted audit committee which reportsregularly to council’s governing body.As members of the governing body responsible for deciding the directionof council, councillors are responsible for determining the amount of riskexposure that the council is prepared to take. By having a riskmanagement process in place councillors are able to make thesedecisions in a more accountable and transparent way. Consequently,residents and ratepayers can be better informed about the reasonsunderpinning council decisions with the effect of increasing theconfidence and trust of council’s community.The benefits for councillors of risk management being embedded incouncil processes include:• assistance in assessing proposals and allocating resources• provision of a level of assurance that the council has appropriatecontrols in place and is managing its compliance obligationsappropriately• consequently freeing the councillors to focus on the keystrategic business of council.COUNCILLOR GUIDE PAGE 32

Risk management is a very valuable support to good governance andprovides the community with confidence that council is being managed ina responsible and accountable manner.2.6 Other resourcesThe Governance Health Check (GHC) is a self-audit guide to goodgovernance in local government. Jointly developed by the IndependentCommission Against Corruption and Local Government ManagersAustralia NSW (LGMA), the GHC is designed to give councils a simpletool to identify key elements of corporate governance in a NSW localgovernment context and to measure their progress in relation to each ofthese elements. It is accompanied by a Manual that provides a usefulreference tool to assist councils to better understand the elements ofgood corporate governance, find additional resources and identify bestpractice.Councillors should check with their general manager to see if council hasaccess to the Governance Health Check, which is available to LGMAmembers.COUNCILLOR GUIDE PAGE 33

SECTION 3CODE OF CONDUCT AND ACTING ETHICALLYThe role of a councillor is a public one. Whenever councillors appear inpublic, even though they may not be doing anything related to theircouncil position, they are usually seen as acting in their councillor roleand judged in this light. This means the position of councillor is really a“24/7” one.Councillors need to act at all times in a way that does not bring disreputeto either themselves or their council. Some general conduct, specialobligations and protocols they must follow are outlined in a council’s Codeof Conduct, which the Local Government Act 1993 requires every councilto adopt.Acting ethically is not just about avoiding or managing conflicts ofinterests. It also applies to the interactions of councillors with council staff,members of the public, use of resources and any personal benefitscouncillors might obtain.3.1 The Code of ConductThe adoption of a Code of Conduct is an important means ofensuring councillors are responsible for their own conduct, formaking decisions ethically and for being accountable to theircommunities.Councillors need to make difficult decisions that do not always haveunanimous support in the community. In order to maintain the confidenceof the community councillors must ensure that these decisions are madein an ethical and impartial manner.The Department of Local Government’s Model Code of Conduct providesthe foundation for ethical decision-making in local government, and allcouncils must make and adopt a code of conduct based on thisdocument. The Model Code of Conduct sets the minimum standards ofconduct for council officials in carrying out their functions. The ModelCode is prescribed by regulation.A copy of the Model Code of Conduct can be downloaded from theDepartment’s website. A Guideline on the Model Code of Conduct is alsoavailable for download from the Department’s website:www.dlg.nsw.gov.au.COUNCILLOR GUIDE PAGE 34

The Model Code of Conduct covers ethical and appropriate conductincluding general conduct, conflicts of interests and personal benefit,relationships between council officials, access to council resources andinformation, reporting breaches of the Code and misbehaviour.Specifically, a council’s Code of Conduct includes when and how acouncillor must disclose a possible conflict of interests when participatingin council debate and decision-making. This occurs when there is conflictbetween the public duty and private interests of a councillor that mayaffect his or her ability to be impartial about an issue. In such cases thecouncillor should declare their interest and manage their involvementaccording to the provisions in the Act and their council’s Code of Conduct.The Model Code sets out eight key principles: integrity, leadership,selflessness, impartiality, accountability, openness, honesty and respect.IntegrityHonestyLeadershipRespectCode ofConductKey PrinciplesSelflessnessOpennessImpartialityAccountabilityCOUNCILLOR GUIDE PAGE 35

In the Model Code of Conduct there are five key questions councillorsshould ask themselves to ensure that their decisions are ethical andsound:• Is the decision or conduct lawful?• Is the decision or conduct consistent with council’s policy and withcouncil’s objectives and the code of conduct?• What will the outcome be for the employee or councillor, workcolleagues, the council, persons with whom you are associated andany other parties?• Do these outcomes raise a conflict of interest or lead to private gainor loss at public expense?• Can the decision or conduct be justified in terms of the publicinterest and would it withstand public scrutiny?If councillors are uncertain about an action or decision, they should seekadvice from the general manager. They may also wish to seek their ownindependent legal advice.Councillors should exercise due care in undertaking their functions byacquainting themselves with the requirements of the Local GovernmentAct 1993, their Council’s Code of Conduct, the details of the matters theyare dealing with, and any factors which may affect their involvement indecision-making.3.2 Conflicts of Interests (pecuniary and non-pecuniary)A conflict of interests exists where a reasonable and informed personwould perceive that a councillor could be influenced by a private interestwhen carrying out their public duty.The importance of following the principles of ethical decision-makingcannot be under-estimated. As an elected person, resident of thelocal area they represent and member of the governing body ofcouncil there is significant potential for conflicts of interests to arisein the course of a councillor’s role. Conflicts of interests must bemanaged appropriately.Councillors must consider how a reasonable person who is informedabout the situation would view it.COUNCILLOR GUIDE PAGE 36

• Pecuniary conflicts of interestsPecuniary conflicts of interests arise where councillors, or certainpersons or entities that are associated with a councillor, arereasonably likely to make or lose money because of a decision thecouncil might make. In such a case the Act requires the councillor todeclare the interest and withdraw from the meeting while the matter isbeing debated and voted on.Councillors also need to submit an annual written return of interests tothe council including information on real property (meaning land andanything attached to it, including buildings), gifts, interests andpositions in corporations, sources of income, and debts. These maygive rise to a pecuniary interest at a meeting and are made publiclyavailable to make sure councillors are seen to be acting openly andhonestly in the decisions they make.• Non-pecuniary conflicts of interestsNon-pecuniary conflicts of interests commonly arise out of family orpersonal relationships or through an association a councillor, orsomeone close to them may have, through involvement in a sporting,social or other kind of group or association. The greater a councillor’sinvolvement with the club or organisation, the greater the likelihood ofa real or perceived conflict of interests.The Model Code now recognises two forms of non-pecuniary conflictof interests: Significant and Less than significant. An example of asignificant non-pecuniary conflict of interests could be where thecouncillor is an active member and involved in the running of asporting club that submits a development application to the council fora major extension of its facilities.In this instance there may be a public perception that the councillor’sactivities with the club would make it difficult for the councillor to viewthe matter before the council impartially. When the matter comesbefore council the councillor needs to consider whether or not he orshe has a significant conflict of interests, and if so, must disclose thenature of the conflict and refrain from participating in the discussion orvoting on the matter.By contrast, if a councillor is merely a member of a large club andutilises its facilities via membership it is unlikely that this membershipalone would conflict with their role as a councillor representing theviews of the residents and ratepayers generally.However, a councillor should still consider if this raises a less thansignificant conflict of interests and if so, he/she should disclose this, aswell as the nature of the interest and a brief explanation of why nofurther action is required in the circumstances. It always remains openfor councillors to take additional steps to manage any perception of aconflict of interests.COUNCILLOR GUIDE PAGE 37

3.2.1 Political donationsCouncillors should be aware that matters before councils involvingpolitical campaign donors may give rise to a non-pecuniary conflict ofinterests. The recently revised Model Code contains a number ofprovisions to assist councillors to manage conflict of interests that mayarise as a result of political donations and their obligations to disclose.The Model Code requires councillors to consider the perception ofinfluence created by any political donations and take reasonable steps toidentify circumstances where this may arise. Councillors must also takeall reasonable steps to ascertain the source of any donations that directlybenefit their campaigns. In addition, councillors have specific obligations ifa donation exceeds $1000 where the donor has a matter before council. Ifthese circumstances apply, then the councillor is required to disclose theinterest and have no involvement in the matter. This applies to allcouncillors, regardless of whether they are independent councillors or amember of a political group or party.3.2.2 Gifts and benefitsCouncillors may find they are offered things such as free tickets to majorsporting or other events. These gifts could be offered innocently and ingood faith or they could be an attempt to influence. The Model Coderequires that councillors do not accept gifts or benefits of more than tokenvalue. However, these may often be attractive and there arecircumstances where they can be difficult to refuse.Councillors need to think about how the community might perceive theiracceptance of these gifts. Feelings of obligation can arise by accepting agift. Members of the public might think a councillor’s ability to makeimpartial decisions has been compromised.In circumstances where a gift or benefit cannot reasonably be refused orreturned, councillors are required to surrender it to council and ensurethat it is recorded in the council’s gifts register.3.2.3 Access to information and resourcesCouncillors have the same rights of access to council information asany other member of the public.A council’s Code of Conduct also discusses how a councillor can getaccess to information and other council resources such as the expertiseof council staff. Access to council staff expertise must happen through thegeneral manager, or in accordance with a system that is put in place tofacilitate and coordinate councillor requests for information or action.COUNCILLOR GUIDE PAGE 38

3.2.4 Appropriate lobbyingThe Model Code and the Local Government Act recognise thatappropriate lobbying of councillors is a normal part of the democraticsystem and that councillors have a representative role in consideringthe views of their constituents and communicating with them.Councillors would be aware that they are at some time likely to be lobbiedby a wide range of people including individuals, organisations, companiesand developers. It is essential that councillors understand the differencebetween appropriate and inappropriate lobbying, and do not underminethe public’s confidence by engaging in lobbying which could beconsidered inappropriate or unlawful.Inappropriate lobbying usually involves an attempt to obtain preferentialconsideration or treatment based on factors other than the merits of amatter.The ICAC has produced a brochure which contains specific informationabout all aspects of lobbying local government councillors.Appropriate vs inappropriate lobbyingExamples of appropriate lobbying:• Keeping records of meetings with lobbyists or objectors• Holding meetings in appropriate locations such as council offices• Ensuring other people are present• Making sure that any information obtained when being lobbied isavailable to council staff and other councillors.Examples of inappropriate councillor conduct that could occur duringlobbying include:• Disclosing confidential information while being lobbied• Accepting a political donation in return for a favourable exercise ofdiscretion during decision-making• Giving undertakings to an interested party prior to consideration ofall the information relevant to a decision.COUNCILLOR GUIDE PAGE 39

3.2.5 Reporting breachesCode of ConductAny person, whether or not a council official, may make a complaintalleging a breach of the Code of Conduct.Suspected breaches of the Code of Conduct by councillors, members ofstaff of council (excluding the general manager) or delegates should bereported to the general manager in writing. Where it is believed that thegeneral manager has breached the Code of Conduct, the matter shouldbe reported to the mayor in writing.Councillors should not make allegations of suspected breaches of theCode at council meetings or in other public forums.Pecuniary interestComplaints regarding non-disclosure of a pecuniary interest may bemade by anyone to the Department of Local Government and these maybe investigated and referred to the Local Government Pecuniary Interestand Disciplinary Tribunal for adjudication. Significant penalties may applyto councillors who don’t meet their obligations in this area.Protected disclosuresThe Protected Disclosures Act 1994 aims to encourage and facilitate thedisclosure, in the public interest, of corrupt conduct, maladministrationand serious and substantial waste in the public sector. The purpose ofthis Act is to ensure that public officials who wish to make disclosuresunder the legislation receive protection from reprisals, and that mattersraised in the disclosures are properly investigated.3.3 Councillors and public commentIt is common for councillors to be asked by journalists to comment oncouncil policy or decisions. There are certain protocols that councillorsmust follow when asked by the media to comment on council policy ordecisions. Many councils have a policy which permits only the mayor, thegeneral manager or the Public Officer to speak on behalf of the council. Insuch cases individual councillors remain free to make personal commentsto the media but not to speak on council’s behalf.When speaking publicly, councillors should ensure that they clarifywhether or not they are acting on behalf of council and/or as anindividual councillor.COUNCILLOR GUIDE PAGE 40

A level of qualified privilege applies to councillors under the law, whichrecognises that councillors may need to speak freely and publicly in thedischarge of their civic duties. However, this ought to be treated withgreat caution. It covers only statements made at a council or committeemeeting in the discharge of a councillor’s duties which are pertinent to thebusiness of local government. Such statements also need to be made ingood faith and must not be made maliciously. Councillors are subject todefamation law and it is contrary to law to injure another person’sreputation in the eyes of society through the written word, pictorially or inspeech.If a councillor becomes aware of media interest in a particular aspect ofcouncil business that could be contentious, they should consider bringingit to the attention of the general manager.To help create a positive, safe and harmonious organisationalculture, councillors should endeavour to work out any issues ordifferences of opinion privately, not publicly, and especially notthrough the media.Further information about the relationship between councillors and themedia can be found in Appendix III – Dealing with the Media.COUNCILLOR GUIDE PAGE 41

SECTION 4MAKING THE MOST OF MEETINGS4.1 How councils debate and make decisionsCouncil meetings are important because they are the mechanismthrough which councillors make decisions regarding policies andprograms of the council to meet the needs of the community.Decisions of a council can only be made by resolution at a properlyconvened meeting.Councillors are expected to attend all council meetings and all meetingsof any committee of which they are a member, unless leave is sought andapproved. Councillors need to do a good deal of reading in preparationfor meetings.As all council decisions are made on a majority basis, councillors need tounderstand the meeting process and the need to work as a team to getthe best outcome for the community. For this, councillors need goodcommunication skills to state their position as well as a willingness tolisten to diverse views and compromise when necessary.The success of meetings depends on working as a team, respectingdiverse opinions and allowing all points of view to be heard. Meetingsuccess also depends on following good meeting practices.4.2 How often council meetings are held and how they areconductedCouncil meetings must be conducted in accordance with the, LocalGovernment Act and Regulation, and council’s Code of MeetingPractice, if it has one.How and when council meetings are held is up to each council to decide,although the Local Government Act 1993 requires every council to meetat least 10 times a year, each time in a different month.Some councils meet only once a month. Many larger councils meet morefrequently because they have a higher volume of business. Councillorsshould be given at least three days notice of regular meetings, unlessthere are extraordinary circumstances that make it important to have amore urgent meeting.COUNCILLOR GUIDE PAGE 42

All formal council meetings must be held in accordance with requirementsin the Local Government Act 1993, the Local Government (General)Regulation 2005 and the council’s Code of Meeting Practice, if it has one,and Code of Conduct.This is because meeting procedures contribute to good public decisionmakingand increase council’s transparency and accountability to itscommunity.The public has the right to see the agenda and business papers for eachmeeting, free of charge, and attend all council meetings and councilcommittee meetings except in special circumstances outlined in the Act(see the section below on Closing Meetings).Role of the mayor or chairperson at meetingsThe mayor is usually the chairperson unless he or she is absent orwishes otherwise. The chairperson maintains order at the meeting andkeeps discussions to the point and to the agenda, amongst other things.This helps ensure meetings are conducted with decorum and decisionsare made in an open, transparent way.While councillors have one vote each, the chairperson has a casting voteif there is a split decision. Therefore, it is particularly important that thechairperson sees that the debate is conducted in a fair and orderlymanner, regardless of his or her own views about the issue underdiscussion. The chairperson may exercise their second or ‘casting’ voteas he or she sees fit.Role of the general manager and staff at meetingsThe general manager can attend council meetings but is not permitted tovote. However, the council may resolve to exclude the general managerfrom a meeting if it is dealing with matters relating to the generalmanager’s employment or standard of performance.Some councils also have other senior staff attend meetings for thepurpose of answering any technical questions that arise out of thecouncil’s business papers. This can be an effective way of ensuring thatcouncillors understand the issues before them.The presence of council staff at meetings should not be used to raisematters that are not on the meeting agenda or that do not reasonablyarise from the business papers. Such conduct does not promote apositive and healthy working relationship between the governing bodyand the administrative arm of council.COUNCILLOR GUIDE PAGE 43

The Regulation allows questions to be put to council staff at meetingsthrough the general manager. However, the staff are entitled toreasonable notice of the question and sufficient time to respond. A staffmember is entitled to refuse to reply to a question. The chair of themeeting is expected to make sure these questions are put succinctly,directly and without debate.QuorumsThere must be a quorum for a council meeting to take place (section 368of the Act). A quorum is the majority of councillors who hold office at thetime of the meeting and therefore does not include councillors who aresuspended from office. For example, if a council has 9 councillors thenthe quorum will be 5 councillors.AgendasIt is important that meetings only deal with matters listed on the agenda inthe order in which they are listed. This allows councillors and members ofthe public to follow the items being debated and the decisions beingmade. If the order of the agenda is to be changed it should be done so bya resolution at the beginning of the meeting.The Regulation requires that the only business to be transacted at acouncil meeting is the business that is already before the council,business that relates to a matter already before the council and businessof which the required notice has been given.A matter for which required notice has not been given can only be dealtwith if the chairperson rules it is of great urgency and a motion is passedto have the matter dealt with.MotionsA motion is a proposal to be considered by council at a meeting. It is arequest to do something or to express an opinion about something. Amotion formally puts the subject of the motion as an item of business forthe council.The number of motions put forward by a councillor cannot be limited. Aslong as notice and other procedures are followed, a councillor can putforward as many motions as they wish.When putting forward motions councillors need to balance their civicresponsibility for representing the interests of the community with theirobligation to use council’s resources effectively and efficiently.COUNCILLOR GUIDE PAGE 44

VotingIn order to vote at a meeting a councillor must be present. There is noavailable mechanism for proxy voting.If a councillor is present at a meeting during voting they are taken to havevoted whether they intended to or not. Clause 251 of the Regulationstates that a councillor who is present at a meeting but fails to vote istaken to have voted in the negative.The only way for a councillor to abstain from voting is to leave themeeting.Closing meetingsAll meetings of a council are open to the public unless they have beenclosed in the limited circumstances set out in section 10A of the LocalGovernment Act. It is important that councillors familiarise themselveswith the details of this section of the Act, which states that the onlycircumstances in which a meeting can be closed are:• Personnel matters are being discussed – this does not includematters relating to councillors• Personal hardship of residents or ratepayers• Commercial in confidence information• Material which if disclosed would prejudice the maintenance oflaw• Security matters• Legal advice• Information regarding items of Aboriginal significance.Only that part of the meeting dealing with the issue arising under section10A may be closed.Having clearly defined circumstances for closing meetings meets thecommunity’s expectations that decisions of council will be made in anopen and transparent manner. It also helps inform the community abouttheir council’s activities and encourages community participation in thedecision-making process.Resolutions or recommendations made at a closed part of a councillorcommittee meeting must be made public by the chairperson of themeeting as soon as practical after the closed part of the meeting hasended. For example, the chairperson would read out the resolutionspassed in the closed part of the meeting when the meeting is re-openedand the minutes of the ordinary meeting would record the words of theresolution passed in the closed part of the meeting.COUNCILLOR GUIDE PAGE 45

A resolution or recommendation should be phrased in such a way as toprotect any confidential detail. This allows the public to know what thecouncil or committee has decided at the closed part of the meetingwithout revealing confidential information.The committee of the wholeThe committee of the whole is where the rules of debate are suspendedwhile a specific matter is debated. The only advantage of a councilforming a committee of the whole is to overcome the limits on the numberand duration of councillor speeches referred to in clause 250 of the LocalGovernment (General) Regulation.For example, clause 250 states that a councillor must not speak on amatter for more than five minutes. A council resolving to move into acommittee of the whole to consider a matter would then allow a councillorto speak for more than five minutes on that matter.Where a council resolves to move into a committee of the whole this doesnot also close the meeting to the public. However, where a council closespart of a meeting under section 10A of the Act, the council may also moveinto committee of the whole if it wants to suspend the rules of debate forthat part of the meeting.A committee of the whole makes recommendations which should be putto the council meeting when the rules of debate are resumed. Thecommittee of the whole’s recommendations must be included in thecouncil’s minutes.In a closed meeting that has resolved into a committee of the whole, thecommittee’s recommendations as well as the resolutions passed in theclosed part of the council meeting must form part of the council’s minutesof the meeting.Mayoral minutesClause 243(1) of the Regulation states that the mayor may put to ameeting, without notice, any matter which the council is allowed to dealwith or which the council officially knows about. This covers any councilfunction under the Act or other legislation, or any matter that has beenbrought to the council’s attention, for example, by letter to the mayor orthe general manager.The mayor may move that a mayoral minute be adopted without themotion being seconded. Mayoral minutes should not be used tointroduce, without notice, matters that need research or a lot ofconsideration by the councillors before coming to a decision. These typesof matters would be better placed on the agenda, with the usual period ofnotice being given to councillors.COUNCILLOR GUIDE PAGE 46

4.3 Different types of council meetingsThere are three main types of formal council meetings which must beconducted in accordance with the Local Government Act and Regulation,and the Code of Meeting Practice, if a council has one:Ordinary council meetingsThese meetings are the forum where the governing body conducts itscore business. The general manager is responsible for giving eachcouncillor and the public at least three days notice of the time and placeof each meeting as well as the agenda and business papers for thatmeeting. It should be noted that if a councillor is absent from three ormore consecutive ordinary meetings without leave their officeautomatically becomes vacant.If a councillor is going to be absent from an ordinary meeting ofcouncil that councillor must apply for a leave of absence. Merelyoffering or accepting an apology is not enough.Extraordinary council meetingsThese meetings may be called on occasion to address business thatcannot be postponed. Three days notice is not required for thesemeetings. Extraordinary meetings should only be called in an emergency(section 367(2) of the Act).Council committee meetingsIn addition to council meetings, councils can establish committees tooversee specific functions, projects or programs and report back to thecouncil on those matters. A council committee is one where all themembers of the committee are councillors. The committee must bechaired by the mayor or a Chair elected from its membership or by thecouncil. The mayor does not have to be the Chair of the committee.The meetings of council committees should also be conducted inaccordance with the council’s Code of Conduct, the provisions of the Actand Regulation and council’s Code of Meeting Practice, if the council hasadopted one.Each councillor, whether a member of a committee or not, is entitled toattend and speak at a meeting of a council committee. However, onlycouncillors who are members of the committee are entitled to putbusiness on the committee’s agenda, move or second a motion at thecommittee meeting, or vote at the meeting.COUNCILLOR GUIDE PAGE 47

Code of Meeting PracticeBoth ordinary and extraordinary council meetings must be conducted inaccordance with the council’s Code of Conduct and the LocalGovernment Act and Regulation. Council may choose to adopt its owncode of meeting practice. The Code must incorporate the provisions ofthe Act and Regulation and may not be inconsistent with them (section360 of the Act). If council has adopted a Code of Meeting Practice thenthe meetings must comply with its provisions as well. A Code of MeetingPractice must be developed in consultation with the community and bemade publicly available.Other meeting typesThe following meeting types may involve councillors but they are notformal meetings in that they do not have to be conducted in accordancewith the Local Government Act and Regulation, and the Code of MeetingPractice, if a council has one:• Advisory CommitteesThese are different from council committees, as membership caninclude non-councillors. While the meeting procedures in the Act andthe Regulation do not apply, good meeting protocols should bemaintained.• Workshops or briefing sessionsCouncils may hold workshops for the purpose of conducting in-depthdiscussions on certain topics. Formal decisions are not made atworkshops but these sessions provide the time needed to exploremore important or complex issues in detail. A workshop may involvecouncillors, council staff and invited participants.Workshops should not be used for detailed or advanced discussionswhere agreement is reached and/or a de-facto decision is made. Anydetailed discussion or exchange of views on an issue, and any policydecision from the options, should be left to the open forum of a formalcouncil or committee meeting.The Department recognises the value of workshops or informationsessions in developing councillor knowledge and expertise, and inassisting their role as public officials. However, where briefingsessions are held in relation to development applications or businessenterprises, council needs to remember its obligations andresponsibilities under its Code of Conduct, and community perceptionsin terms of unfair advantage and transparency of process.COUNCILLOR GUIDE PAGE 48

4.4 Other resourcesDepartment of Local Government – Practice Note No. 16 – MeetingsThe Department has produced Practice Note No. 16 – Meetings to helpcouncils run their meetings. It is not meant to be a complete guide tomeeting procedures but it does cover frequently asked questions.Meeting procedures contribute to good public decision-making andincrease council’s transparency and accountability to its community.While legislation sets out certain procedures that must be followed incouncil and committee meetings, beyond this meeting procedures varybetween councils. These differences usually reflect local cultural practicesand priorities.The Practice Note is a guide for councils, councillors and members of thepublic. It does not give legal advice. Councils may seek their own legaladvice on issues of concern.A copy of the Meetings Practice Note can be downloaded from theDepartment’s website: www.dlg.nsw.gov.au.Other publicationsPublications such as Joske’s Law and Procedures at Meetings inAustralia give general guidance on running meetings. However,councillors should be mindful that such publications may provideinformation which is different to that outlined in this section. Where suchcontradictions exist, the Local Government Act and Regulation, and thecouncil’s Code of Meeting Practice, if it has one, should be followed.COUNCILLOR GUIDE PAGE 49

SECTION 5SOUND PLANNING AND REPORTINGPlanning decisions affect communities, the environment and qualityof life and usually have long-lasting consequences.Councillors are involved in overseeing the development, carrying out ofand reporting on many council plans and activities. Some council plansand reports have strict legal requirements about what needs to beincluded in them and how and when a council needs to consult with itscommunity during their development.Councils are responsible for two types of planning: strategic planning andland use planning.5.1 Strategic PlanningStrategic planning is the process by which a council establishes a visionfor its future and develops goals, objectives, strategies and actions toachieve that future. To perform their role effectively, councillors need toactively participate in determining the strategic direction of council and theplanning process supporting it.Councils must consider the issues of sustainability when undertaking theirstrategic planning, to ensure their decision making results in “EcologicallySustainable Development” in line with their responsibilities under theLocal Government Act 1993 (for further information see Appendix V –Sustainability). Councils can take this a step further by integrating thesocial, economic, environmental and civic leadership considerations ofsustainability into the long term planning and practices of their council andcommunity.It is proposed that a new planning and reporting framework for NSW localgovernment be introduced in 2009, to assist councils to better meet theirplanning responsibilities. This new planning system will replace theformer Management Plan, Social Plan and State of the EnvironmentReport with an integrated framework. It will also include a newrequirement to prepare a long term Community Strategic Plan andResourcing Strategy. The new planning system is explained in greaterdetail below.COUNCILLOR GUIDE PAGE 50

An overview of the existing planning systemPlease note – it is proposed that the existing system be replaced in 2009. Thefollowing information is provided for reference only.Strategic planningWhile councils are not currently required to prepare long term strategicplans, they are strongly encouraged to do so. Such plans should include avision statement for the future and key outcomes to be achieved.Management planningDuring each year, a council must prepare a draft management plan withrespect to the council’s activities for at least the next 3 years, and thecouncil’s revenue policy for the next year. After the plan is adopted thegeneral manager reports quarterly to the council about progress inachieving the plan during that quarter.Financial PlanningFor more detail on existing financial planning requirements see Section 6.2.Social/Community planning and reportingCouncils must prepare a social/community plan at least once every 5 yearsthat includes a demographic profile of the community and the needs of thecommunity, including the needs of Aboriginal people, children, people fromculturally and linguistically diverse backgrounds, people with a disability,older people, women and young people. Councils are required to considerthe plan when preparing their management plan and report on itsimplementation in their annual report.Environmental planning and reportingAs part of their annual report councils must prepare a report on the state ofthe local environment. This report considers land, air, water, biodiversity,waste, noise, and heritage issues and what the council is doing in responseto those issues. Such reporting allows councils to identify key issues andconsider environmental indicators in their local areas, which can feeddirectly into the environmental planning they undertake.Annual reportingEach council must prepare a report each year on the extent to which it hasmet the objectives and targets set out in its management plan. The reportmust include a copy of the council’s audited financial reports. The reportmust be made available to the public and provided to the Minister for LocalGovernment.COUNCILLOR GUIDE PAGE 51

5.1.1 The proposed strategic planning and reporting systemThe proposed new system recognises that communities do not exist inisolation – they are part of a larger natural, social, economic and politicalenvironment that influences and, to a large extent, shapes their futuredirection.Neither do council plans exist in isolation – land use and infrastructureplanning produces social, environmental and economic outcomes, andvice-versa – they are connected.This system encourages councils to draw their various plans together, tounderstand how they interact and to get the maximum leverage from theirefforts by planning holistically for the future.Community Strategic PlanThe Community Strategic Plan sits at the top of the planning hierarchyand is the highest level plan that a council will prepare. The purpose ofthe plan is to identify the community’s main priorities and expectations forthe future and to plan strategies for achieving these. In doing this, theplanning process will consider the issues and pressures that may affectthe community and the level of resources that will realistically be availableto achieve its aims and aspirations. While a council has a custodial role ininitiating, preparing and maintaining the Community Strategic Plan onbehalf of the community, it is not wholly responsible for itsimplementation. Other partners, such as state agencies and communitygroups may also be engaged in delivering the long term objectives of theplan.Community Strategic Plans will be required, as a minimum, to cover aten-year period. Each Community Strategic Plan must adequatelyaddress social, environmental, economic and civic leadershipconsiderations. This approach is generally referred to as “the quadruplebottom line”.To achieve these aspirations councils need sufficient resources – time,money, assets and people – to actually carry them out.To determine its capacity councils need to undertake:• Long Term Financial Planning (for further information seeSection 6.2)• Workforce Management Planning• Asset Management Planning (for further information seeSection 6.4)COUNCILLOR GUIDE PAGE 52

Delivery Program and Operational PlansThis is the point where the community’s strategic goals are systematicallytranslated into actions by the council.The Delivery Program is a statement of commitment to the communityfrom each newly elected council. In preparing the Program, council isrecognising its stewardship of the community’s long term goals, outliningwhat it intends to do to achieve these goals during its term of office andwhat its priorities will be.The Delivery Program replaces the former Management Planrequirements. It is designed as the single point of reference for allactivities undertaken by council during each term of office. All plans,projects, activities and funding allocations should be directly linked to thisProgram.The Operational Plan is a sub-plan of the Delivery Program. This detailsthe individual projects and activities that will be undertaken each year toachieve the commitments made in the Delivery Program.Annual ReportThe Annual Report is one of the key points of accountability between acouncil and its community.It is not a report to the Department of Local Government or the NSWGovernment, it is a report to the community.The annual report focuses on council’s implementation of the DeliveryProgram and Operational Plan because these are the plans that arewholly the council’s responsibility.The report also includes some information that is prescribed by the LocalGovernment (General) Regulation 2005. This information has beenincluded in the Regulation because the Government believes that it isimportant for community members to know about it – to help theirunderstanding of how council has been performing both as a businessentity and a community leader.COUNCILLOR GUIDE PAGE 53

5.1.2 Roles and responsibilities of the mayor and councillors instrategic planningThe success of the planning process relies heavily on thecommitment of the mayor and the general manager as well as allcouncillors. Without strong support and commitment, council will findit difficult to develop and implement a meaningful plan.The mayor, as spokesperson for council, is the public face of the planningprocess. The mayor is responsible for explaining the purpose of theCommunity Strategic Plan to the community and for encouraging publicsupport for the planning process. The mayor and the councillors’ ability tocapture a vision for the community’s future and to inspire others toparticipate in that future will be fundamental to the success of theprocess. It is important that all councillors support and are fully committedto the value of strategic planning.Similarly, the general manager has a pivotal role to play in mapping outthe council’s approach to the planning process and ensuring thecommunity receives the information it needs to participate in a meaningfulway.The general manager will also be responsible for guiding the preparationof the Community Strategic Plan and council’s response to it via theDelivery Program. She or he is responsible for implementing the DeliveryProgram and will report regularly on progress and ensure that it becomesa living document with regular updates and reviews, as required.The general manager’s clear understanding of the planning process andthe way the various components are integrated will be fundamental to itssuccess. He or she has an important leadership role to play in ensuringthat each member of council’s staff understands how their particular workactivity contributes to achieving the objectives of the Community StrategicPlan and what is expected of them in delivering its outcomes.COUNCILLOR GUIDE PAGE 54

5.1.3 Assessing strategic plansOne of the most important roles of the governing body of council is toendorse strategic plans. As well as the Community Strategic Plan,councils may prepare other strategic plans which are not required bylegislation but which may assist in implementing the Community StrategicPlan. These include cultural plans, public health plans, economicdevelopment plans, environmental management plans and crimeprevention plans.In order to endorse strategic plans councillors must be able to assess theappropriateness. Councillors should first be satisfied that the plan as awhole makes sense and that each part is logically supported with soundanalyses and actions.The questions in Section 2.4 “Effective Decision Making” and in Section6.2.1 “Long term financial planning” provide a starting point for councillorswhen assessing strategic plans. However, a framework such as the“integrity model” may also assist councillors.The Integrity Model asks the following questions:• Comprehensibility: Can you understand the plan and explain it tothe community?• Appropriateness: Does the plan fit with the council’s strategicdirection and comply with its legislative and policy framework?• Sustainability: Are the assumptions underlying the plan valid andbased on adequate financial and environmental analyses?• Feasibility: Is the council able to successfully respond to anychallenges contained in the plan? Are council’s resources sufficientto support the plan?• Accountability: Does the plan contain adequate performancemeasures so that management can report on the progress of theplan in a timely manner?COUNCILLOR GUIDE PAGE 55

5.2 Land use planningLand use planning refers to the long term development or conservation ofan area and the establishment of a relationship between local objectivesand regional goals.The NSW Department of Planning is responsible for the administration ofthe Environmental Planning and Assessment Act 1979 (EPAA), whichprovides the framework for development decisions made by localgovernment in NSW. The objects of the Act include encouraging “theproper management, development and conservation of natural and manmaderesources” and ecologically sustainable development.The responsibilities of councils under the EPAA are briefly outlined below.However, the Department of Planning can provide further advice on thisissue. Contact details for the Department of Planning and furtherinformation about the EPAA and ecologically sustainable developmentcan be found in Appendix II.5.2.1 The role of local government in development controlLocal government is usually the consent authority for local developmentin NSW. The Minister for Planning is the consent authority for statesignificant development, usually so declared under a State EnvironmentalPlanning Policy or a Regional Environmental Plan.The principal local government planning instruments, LocalEnvironmental Plans (LEPs) and Development Control Plans (DCPs), aremade under the EPAA.Local Environmental Plans (LEPs)An LEP may be made for all or part of a local government area. Itdetermines the development status of any site within the area it has effectfor. The EPAA outlines the processes that a council must follow if itdecides to prepare a draft LEP or is directed to do so by the Minister forPlanning. This includes the council undertaking an environmental studyfor the land in question and the public exhibition of the draft LEP andenvironmental study (if prepared) for at least the prescribed period of 28days, following approval by the Director General of the Department ofPlanning.Councils may then consider public submissions and, if warranted, holdpublic hearings. The draft LEP may be amended as a result of thisprocess. If so, it may be re-exhibited prior to being submitted to theDepartment of Planning, which will assess the Plan’s compliance withState planning policies and instruments. If the Department makes afavourable recommendation, the Minister for Planning may then make theLEP and cause it to be published in the Government Gazette.COUNCILLOR GUIDE PAGE 56

The NSW Government has introduced a Standard Instrument (LocalEnvironmental Plans) as part of its ongoing reform of the State’s planningsystem. Councils are able to add to the template to set out detailed localplanning rules that address local issues within their area. The standardinstrument is not in itself an environmental planning instrument under theEPAA. The provisions set out in the standard instrument only have thelegal force of an environmental planning instrument once they areadopted as part of a council’s gazetted LEP.The Department of Planning has produced a frequently asked questionsdocument about the standard instrument. This, and further informationabout the LEP process can be found on the Department of Planning’swebsite: www.planning.nsw.gov.au.Development Control Plans (DCPs)DCPs provide a detailed guideline that illustrates the controls that apply toparticular types of development or particular areas in a council’s area. Tobe valid, DCPs must generally conform to the provisions of the relevantLEP. Similar requirements exist for public exhibition as for LEPs.Councils may choose to develop DCPs in order to:• Identify development as advertised development, which then allowsfor notification of the proposal to adjoining owners/occupiers andnotice being given in the local newspaper. Submissions on theproposal may then be made to Council prior to consideration ofconsent• Provide additional notification requirements for certain types ofdevelopments• Specify additional matters to be taken into account in makingorders.Environmental Impact Statements (EIS)A development application for a project, identified as a designateddevelopment under the Regulations or another planning instrument, mustbe accompanied by an environmental impact statement (EIS). Suchprojects are usually in the nature of major works such as industrialfacilities, extractive industries and the like. In such cases, public exhibitionof the application and any accompanying information for at least 30 daysis required. Objections to the proposal may be taken to the Land andEnvironment Court if consent is granted subsequent to publicsubmissions being received and considered by council as part of theevaluation process. If consent is refused, the applicant may also appealthe decision of council.COUNCILLOR GUIDE PAGE 57

Conditions of consentCouncil may choose to allow a development subject to certain conditions.These must generally be imposed for a planning purpose, fairly andreasonably relate to the development and be reasonable. They may betested by appeal to the Land and Environment Court.5.2.2 Public land managementCouncils have responsibilities under the Local Government Act for themanagement of public land in their areas. The Act defines public land as“any land (including a public reserve) vested in or under the control of thecouncil”. However, public land does not include a road, Crown land,commons (as defined under the Commons Management Act 1989), landsubject to the Trustees of Schools of Arts Enabling Act 1902, or aregional park under the National Parks and Wildlife Act 1974.Public land management is a complex issue and council decisionsrelating to this issue can often be the subject of intense public interestand scrutiny. It is therefore important that councillors have anunderstanding of the issue.The Department has prepared Practice Note No.1 - Public LandManagement to assist councils in their management of public land underthe Local Government Act 1993. The Practice Note focuses on therequirements of the Act and related issues and covers areas such as theclassification and reclassification of public land; management plans; andleasing, licensing and the granting of other estates over community land.A copy of the Public Land Management Practice Note can be downloadedfrom the Department’s website: www.dlg.nsw.gov.au.Management of Crown landCrown land comprises approximately half of all land in NSW and ismanaged primarily by the Department of Lands. However, councils arealso responsible for the management of some parcels of Crown landretained or acquired by the State and set aside for specific publicpurposes, known as Crown reserves. Crown reserves are often managedby reserve trusts and these trusts are charged with the responsibility forthe care, control and management of Crown land for the community.Reserve trusts are established under the Crown Lands Act 1989 andoften a local council is the reserve trust manager. As reserve trustmanager, a council has all the functions of a council under the LocalGovernment Act 1993 in relation to public reserves. However, Crown landis specifically exempt from the land classification requirements in theLocal Government Act. This means that a council does not have toclassify Crown land as either operational or community land.COUNCILLOR GUIDE PAGE 58

The Crown Lands Act 1989 and the Crown Lands Regulation 2006control the management of Crown land. The Crown Lands Act providesfor plans of management for Crown reserves to be prepared inconsultation with the community. As a reserve trust manager, a councilmay initiate the preparation of a plan of management in consultation withthe Department of Lands. A draft plan of management needs to be placedon public exhibition for at least 28 days.Public comments are taken into account before the Minister for Landsconsiders adopting the plan. If adopted, the plan becomes a regulatoryinstrument, which binds the reserve trust and can give statutory authorityto other types of plans, such as conservation management plans forheritage components.The Department of Lands issued the Trust Managers Handbook in 2005.This Handbook and further information about the responsibilities ofcouncils as Crown reserve trusts on its website:http://www.lands.nsw.gov.au/crown_land/crown_reserves.5.3 Natural resource management (NRM)Natural Resource Management (NRM) is the management of naturalassets including vegetation, land, water and soil in a manner consistentwith the principles of ecologically sustainable development. Councilsmake a significant contribution to the management and protection ofnatural resources in NSW.Councils have a range of functions, powers and responsibilities that caninfluence NRM, on both private and public land. These include:• Strategic and statutory planning: including settlement or land usestrategies, land use zonings and provisions or clauses inLEPs/DCPs.• Plans of management: including mapping natural assets or hazards.• Development assessment: including conditions of consent anddevelopment contributions.• Incentive programs: including rate rebates, free tree giveaways andacquisition programs for environmentally significant lands.• On-ground works: including site-based rehabilitation projects, treeplanting/revegetation projects/bush regeneration, roadsidevegetation management, noxious & environmental weed control,wetland and/or water body restoration, water quality monitoring andstormwater management and control.• Community engagement: including information (brochures, website,factsheets), community feedback, community focus groups,community standing advisory committees, and partnerships withlocal community groups.COUNCILLOR GUIDE PAGE 59

Local Government is encouraged to incorporate relevant national, statewide and catchment priorities and targets into its land use and corporateplanning processes in order to deliver an effective and coordinatedapproach to NRM.In NSW NRM is delivered on a regional basis through a variety ofstakeholders, including all levels of government; Catchment ManagementAuthorities; Landcare, Bushcare and Coastcare Networks; landholders;and the general community.There are 13 catchment management areas (CMAs) in NSW and astrategic plan (Catchment Action Plan) for each area ensures acoordinated regional approach to meeting statewide and catchmenttargets for NRM. These plans identify priority actions in a region whichmay assist councils to determine key NRM activities and possible fundingopportunities.The NSW State Plan: a New Direction for NSW also incorporates 13statewide targets for NRM, and the NSW standard for Quality NaturalResource Management. The State Plan is the overarching documentinforming the development of regional strategies which then provide aregional planning framework for local councils to apply through their newLocal Environmental Plans.COUNCILLOR GUIDE PAGE 60

SECTION 6FINANCIAL MANAGEMENTThe responsibility and accountability for the financial management ofa council rests with the governing body.This does not mean that councillors should be involved in the detailedassessment of complex financial figures. Rather, councillors areresponsible for making strategic decisions in relation to the financialmanagement of the council that determines or affects the types ofservices, level of services and the strategic direction of the council.Councillors need to know:• How does council get revenue to support its operations?• Are there restrictions on how this money can be spent?• What activities does council fund?• What information is required to assess the financial health ofcouncil?6.1 Sources of revenueAs discussed briefly in Section 1, councils obtain revenue from four mainsources: rates and annual charges, user charges and fees, grants andother sources.Sources of revenue for NSW Councils for 2006/07Contributions and Donations10%Other Revenues5%Grants16%Rates and Annual Charges47%Interest5%User Charges and Fees17%COUNCILLOR GUIDE PAGE 61

6.1.1 RatesGenerally, a council’s main source of revenue is from rates. Rates arelocal taxes that are levied on the basis of property values, issued by theValuer General, within the local government area. Growth in eachcouncil’s total rates income is capped to a percentage each year roughlyin line with CPI, which is announced by the Minister for LocalGovernment. Council staff will prepare the rates structure on this basisand it will form part of the revenue policy that the governing body will berequired to approve.Special VariationsThe council may seek to increase the rates above the allowed percentagewith Ministerial approval through an application for a Special RatesVariation under section 508(2) and 508A of the Local Government Act1993.In considering the decision to apply for a special variation,councillors should consider the purpose of the special variation, theimpact that the decision will have on the community and council’sfinances.The decision of a council to apply for a special variation should be astrategic decision and should be endorsed by the council prior toapplication. Councils should also consider whether the decision fits withthe strategic direction of the council and whether all the relevant materialsand facts are available to make an informed decision.When considering an application for a Special Variation the Minister takesinto account issues such as how the variation will assist the council inmeeting its long term strategic objectives, the level of consultationundertaken by council, the community’s response to the proposal and thefinancial position of the council.6.1.2 Fees and ChargesAnnual chargesUnder section 496 of the Local Government Act a council must make andlevy an annual charge for the provision of domestic waste managementservices for every parcel of rateable land for which the service isavailable. In addition, under section 501 councils can levy annual chargeson each parcel of rateable land for water supply services, sewerageservices, drainage services and waste management services. There isalso scope to allow annual charges on other services prescribed by theLocal Government (General) Regulation 2005.COUNCILLOR GUIDE PAGE 62

FeesCouncils can get additional income from fees for the use of publiclyowned facilities like swimming pools, halls and other user-pays services.Fees can also be charged for giving information, supplying products orprocessing applications.Setting of fees and chargesThe amount of fees and charges are set by the council each year throughthe approval of the revenue policy, contained in the management oroperational plan, by the governing body of the council.Fees and charges should generally be set at a level that reflects the costto council of providing those services.A council cannot make and implement a rate or charge until:• it has given public notice in its draft management oroperational plan• it has considered any submissions on the draft managementor operational plan and resolved to adopt the plan.6.1.3 GrantsEach year all councils receive a financial assistance grant, which is paidby the Commonwealth Government through the State Government’sGrants Commission. In 2007-08 the NSW Grants Commission distributed$565.04 million to councils in NSW. The amount of the grant varies fromcouncil to council. The financial assistance grant may be used for anycouncil purposes.Councils receive grants from other sources from time to time and mayapply for specific grants for specific purposes or programmes. Thesegrants are usually through the State and Commonwealth Governments.For example, the NSW Roads and Traffic Authority may make a grant forwork on a particular road.6.1.4 Other revenue sourcesOther sources of income include interest on investments, contributionsand any gains made from the sale of assets.InvestmentsSection 625 of the Local Government Act allows councils to invest moneythat is not, for the time being, required by council. Investments must be inline with the current Ministerial Investment Order and any guidelinesissued by the Department of Local Government.COUNCILLOR GUIDE PAGE 63

Each month an investment report must be presented at a council meetingby the Responsible Accounting Officer (RAO). The RAO must take a‘prudent person approach’ to investing council’s money.As the role of the council is to direct and control the affairs of the councilin accordance with the Local Government Act, councillors should ensurethat council:• has an appropriate investment policy that guides the investment ofratepayers’ funds in accordance with the council’s charter• approve the investment policy by resolution• ensure that the policy is reviewed each year• ensure that there is open and transparent reporting of the councilinvestments to the council and to the ratepayers.BorrowingsSection 621 of the Local Government Act allows council to borrow at anytime for any purpose allowed. Borrowings can take the form of anoverdraft or loan and a council may give security for borrowings. Councilsare required to adhere to the Ministerial Borrowing Order when borrowing.The borrowings are set by the governing body of the council each yearthrough the approval of the revenue policy, contained in the managementor operational plan.6.2 Financial planningA council’s management or operational plan contains its revenue policy,which sets out how a council plans to pay for its activities. It gives detailsof council’s estimated income and expenditure for the next year; sets outthe rates, charges and fees; outlines council’s pricing policy; andannounces proposed borrowings.It is very important that councillors are aware of what they are approvingwhen they adopt the revenue policy. Councillors should encourage thegeneral manager to recommend options for cost-effective service deliveryand strategies for raising revenue. Similarly, councillors should makesuggestions and ask the general manager to report on their viability.6.2.1 Long term financial planningA long term financial plan is an important part of council’s strategicplanning process. This is where long term community aspirations andgoals are tested against financial realities.COUNCILLOR GUIDE PAGE 64

The proposed strategic planning and reporting system referred to inSection 5.1.1 reinforces the importance of the long term financial plan asa key decision-making and problem-solving tool for councillors. Themodelling that occurs as part of the long term financial plan providesinformation for councillors to consider financial issues at an earlier stageand to gauge the effect of these issues in the longer term, when makingfinancial decisions for the council.The following is an overview of the long term financial planningcomponent of the proposed strategic planning and reporting system:What are the general requirements for long term financial planning?• Each council must prepare a long term financial plan.• The long term financial plan must be used to inform decisionmaking during the finalisation of the Community Strategic Planand the development of the Delivery Program.What is the minimum timeframe for the long term financial plan?• The long term financial plan must be for a minimum of 10 years.How often must the long term financial plan be reviewed?• The long term financial plan must be updated at least annually aspart of the development of the Operational Plan. The long termfinancial plan must be reviewed in detail as part of the four yearlyreview of the Community Strategic Plan.What is the basic structure of the long term financial plan?• The long term financial plan must include:‣ Projected income and expenditure, balance sheet andcashflow statement‣ Service standards to be provided‣ Planning assumptions used to develop the Plan‣ Sensitivity analysis - highlights factors/assumptions mostlikely to affect the Plan‣ Financial modelling for different scenarios e.g.planned/optimistic/conservative‣ Methods of monitoring financial performanceCOUNCILLOR GUIDE PAGE 65

6.3 Allocation of revenueWhile the general manager is accountable to the governing body for thecouncil’s financial performance, as members of the council’s governingbody councillors are accountable to the residents and ratepayers for theappropriate allocation of council monies.In order to discharge this responsibility it is essential that councillorsreceive from the general manager adequate financial reports so that theycan assess the financial health of council and ensure that finances havebeen properly accounted for.Similarly, in making decisions and assessing the sustainability of council,it is essential that councillors are provided with sufficient information todetermine if council can afford to undertake the activity, assess the costbenefitof any proposed activity or project, and monitor that councilactivities and projects are being undertaken within budget.Key questions for councillors when assessing plans and projects• Is the strategy in the best interests of the community?• How does it address community wants and needs?• How does it fit with council’s vision and goals?• What would be the impact of demographic, social orenvironmental change on the proposal?• Will the performance indicators contained in the proposal enablecouncil to adequately monitor the progress of the plan andmeasure if it is achieving the desired outcome?• Does it provide value for money? Is the cost-benefit acceptable?COUNCILLOR GUIDE PAGE 66

6.4 Asset managementWhen making investment decisions about assets councillors need toconsider their full lifecycle cost, not simply the immediateconstruction/purchase price.An asset is defined as “a resource controlled by a council as a result ofpast events and from which future economic benefits are expected to flowto the council.” At this stage, councils are only required to specificallyconsider their physical assets, however some councils currently chooseto plan for the long term management of “soft assets” (intangibles) suchas intellectual property and environmental assets.NSW local government is the custodian of approximately $50 billion ofcommunity assets. These assets include roads, water and sewerageassets, drains, bridges, footpaths, public buildings, recreational facilitiesand parks and gardens. These assets enable councils to provide servicesto the community.As custodians, councils are responsible for effectively accounting for andmanaging these assets and having regard to the long term andcumulative effects of their decisions. This is a core function of the councilunder the Charter in the Local Government Act.The term “asset management” describes the process for “whole of life”asset management from planning, purchase, operation, maintenance todisposal of assets. It also encompasses integration of asset and serviceoutcomes.6.4.1 Asset management planningA strong and sustainable council requires a strong assetmanagement planning process to ensure that its assets aremanaged in the most appropriate way to deliver the services that thecommunity needs. To ensure that this is achieved council’s assetmanagement planning must be integrated with all of its strategicplanning processes.Asset management decisions should be informed by the evaluation ofalternative means of service provision, full life cycle costing, andperformance measurement and monitoring.COUNCILLOR GUIDE PAGE 67

Informed decision-making recognises the long-lived character ofinfrastructure assets and the need to plan and budget for them on a fulllife cycle basis beginning with the identification of a service need and themeans to meet that need.The proposed strategic planning and reporting system reinforces theimportance for councillors to consider all aspects of their council’sservices and programs when undertaking asset management planning.Asset management planning should not be done in isolation.The following is an overview of the asset management planningcomponent of the proposed strategic planning and reporting system:What are the general requirements for asset management planning?• Each council must account for and plan for all of the existingassets under its ownership, and any new asset solutionsproposed in its Community Strategic Plan and Delivery Program.• Each council must prepare an Asset Management Strategy andAsset Management Plan/s to support the Community StrategicPlan and Delivery Program.What is the minimum timeframe for the Asset Management Strategyand Plan/s?• The Asset Management Strategy and Plan/s must be for aminimum timeframe of 10 years.What is the basic structure of the Asset Management Strategy?• The Asset Management Strategy must include an overarchingcouncil endorsed Asset Management Policy.• The Asset Management Strategy must identify assets that arecritical to the council’s operations and outline risk managementstrategies for these assets.• The Asset Management Strategy must include specific actionsrequired to improve council’s asset management capability andprojected resource requirements and timeframes.(continued on next page)COUNCILLOR GUIDE PAGE 68

What is the basic structure of the Asset Management Plan/s?• The Asset Management Plan/s must encompass all the assetsunder a council’s control.• The Asset Management Plan/s must identify asset servicestandards.• The Asset Management Plan/s must contain long term projectionsof asset maintenance, rehabilitation and replacement costs.How should councils assess the condition of their Assets?• Councils must adopt the following five-category model forassessing the condition of their assets.Level Condition Description1 Excellent No work required (normal maintenance)2 Good Only minor work required3 Average Some work required4 Poor Some renovation needed within 1 year5 Very poor Urgent renovation/upgrading required.What Asset Management reporting must councils do?• Councils must adopt the five-category assessment model forreporting on the condition of their assets in their annual financialstatements in line with the Local Government Code of AccountingPractice and Financial Reporting.COUNCILLOR GUIDE PAGE 69

6.5 Capital expenditureAs councils are responsible for the prudent management of communityresources, it is important that before committing to any major capitalprojects that councils undertake a capital expenditure review as part ofcouncil’s normal planning processes.Prior to commencing any capital expenditure over $1 million, the councilwill need to consider a number of requirements, such as:• The need for the additional facilities• Capacity of council to conduct the project• Priority of the project in relation to existing capital commitments andfuture works• Consideration of project alternatives• A report on all financial implications of the project• A report on the public consultation process in which clearaccountability for project reporting to council and therefore thecommunity must be provided for.Councillors are required to vote on capital projects and they should makesure that they are satisfied that the above requirements have beenreported adequately to enable them to make an informed decision.In addition to the minimum requirements for large dollar capitalexpenditure projects council will also be required to complete:• A Business/Management Project Plan• A Risk Management Plan• A Probity PlanFor more information councillors can read the Draft Capital ExpenditureProjects guidelines on the Department of Local Government website:www.dlg.nsw.gov.au. Further information on effective decision makingcan be found in Section 2 – Roles, Responsibilities and Relationships.COUNCILLOR GUIDE PAGE 70

6.6 Financial reportingCouncil’s governing body should regularly receive a number of financialreports including:• Budget, with a comparison to the actual results• Forecasts – projections of council’s financial position into the future• Balance sheet – statement of financial position showing the currentvalue of council’s assets ie. cash, receivables (debtors), inventory(stock), any prepayments, and the current state of council’s liabilityie. creditors, borrowings, provisions, and unearned income• Profit and loss – statement of financial performance detailingcouncil’s income and expenses• Cash flow – shows cash receipts and cash payments. It enablescouncillors to assess council’s ability to pay its debts as and whenthey fall due and as such is a good measure of council’s solvencyThese reports might be accompanied by commentary advising thegoverning body of any exceptional or unexpected items and explainingany anomalies that might be evident in the reports, as well as ratioanalysis of council’s performance. There are three types of ratioscommonly used to analyse and asses financial performance:• Liquidity ratios that allow assessment of the organisation’s ability topay debts – current ratio and quick ratio• Operating ratios that help assess efficient management of workingcapital and assets – “days debtors” and “days creditors”, whichrespectively measure the number of days on average that accountsreceivable are owing and the average time it takes to pay creditors• Financing ratios that help in assessing comfortable use of liabilitiescompared with level of equity ie. interest cover, debt to equityIt is important that councillors are able to understand the financial reportspresented to them in the council meeting papers so that they can properlymonitor council’s performance and discharge their responsibilities asmembers of council’s governing body. It is not sufficient for councillors tosolely rely on the assurances of the staff.COUNCILLOR GUIDE PAGE 71

While the general manager is accountable to the governing body for thecouncil’s financial performance, councillors must feel appropriatelyinformed and comfortable before signing off financial reports or agreeingto financial commitments.Councillors must make sure that they ask enough questions to enablethem to understand the financial situation of council. If the council’sgoverning body feels that it has insufficient information on which to base adecision or monitor or assess a project or proposal it is important that thegeneral manager is asked to provide further information.Important questions to ask when evaluating financial reports include:• are the council’s results above or below the benchmarks?• are the results improving or declining?• if they are declining, what are the reasons for this and what iscouncil doing to improve this in the future (what does the long termfinancial plan show?)The financial ratios discussed above can provide councillors with valuableinformation to assist them in assessing one aspect of council’s financialhealth. The Department of Local Government has a number ofbenchmarks for various indicators that it uses to assess the financialhealth of councils.COUNCILLOR GUIDE PAGE 72

6.7 Other financial management issues6.7.1 Goods and Services Tax (GST)Councils are required to complete a GST compliance certificate each yearthat is submitted to the Department of Local Government.The council is required to sign the GST compliance certificate undercouncil resolution that the records are being maintained in accordancewith the GST legislation and forward the certificate to the Department ofLocal Government by 30 May each year. The statement is to be signedby the mayor, general manager, responsible accounting officer and oneother councillor.6.7.2 Formation of companiesSection 358 of the Local Government Act allows for the formation ofcorporations and other entities by councils, but only with the Minister’sconsent.An entity for the purposes of section 358 of the Act means anypartnership, trust, joint venture, syndicate or other body (whether or notincorporated). It does not include any such entity that is of a classprescribed by the Local Government (General) Regulation 2005 as notbeing within this definition. To date, the Regulation has not prescribedany class.In applying for the Minister’s consent under section 358, the council mustdemonstrate that the formation of, or the acquisition of the controllinginterest in, the corporation or entity is in the public interest.Applications are assessed by the Department of Local Government andreferred to the Minister for approval. As part of the Department’sassessment of a council’s application, regard is given to the following:• Is the proposal consistent with the functions of the council or anexisting service that the council provides? Councillors shouldensure that the application is consistent with the functions of thecouncil or an existing service that the council provides.• Will the proposed entity be legally separated from the council?• Is the council currently financially viable?Further details on the formation of companies can be found on theDepartment of Local Government website:http://www.dlg.nsw.gov.au/dlg/dlghome/documents/Circulars/07-49.pdf.COUNCILLOR GUIDE PAGE 73

6.7.3 Public Private Partnerships (PPP)A public-private partnership (PPP) is defined as an arrangement betweena council and a private person for the purposes of providing infrastructureor facilities, or delivering services in accordance with the arrangement orboth. Legislative provisions relating to PPP are set out in section 400B to400N of the Local Government Act.A council must not enter into a PPP unless the council has provided theDepartment of Local Government with an assessment of the project to becarried out. If the project is a significant project (defined as where the costis more than $50 million or council’s contribution is more than 25% of thecouncil’s annual revenue that is available for such projects) or if theDepartment considers the project to have a high risk the project will bereferred to the Project Review Committee. The Minister may also referany project to the Project Review Committee.If their council is considering a PPP councillors should consult theDepartment’s guidelines that provide information on the processes thatcouncils are to follow. The PPP guidelines are available on theDepartment’s website: www.dlg.nsw.gov.au.COUNCILLOR GUIDE PAGE 74

SECTION 7SUPPORT FOR COUNCILLORS7.1 Annual fees paid to councillorsAlthough being a councillor can be a time consuming role, the law doesnot technically consider it to be a form of employment. Thereforecouncillors are not entitled to wages, workers compensation or sick payetc. However, under the Local Government Act 1993 councillors areentitled to receive an annual fee for carrying out their duties. This is paidin monthly instalments in arrears.The fee paid will depend on the size of the council, the number of peopleit serves and the assets it manages. A councillor in a small rural councilwill generally get paid less than a councillor in a big city council. For2008/09 the fees range from $6,870 per year to $30,240 per year. Themayor gets an additional fee for the additional duties he or she carriesout.The Local Government Remuneration Tribunal decides each year whatcouncillor fees will be. Each council is not allowed to pay its councillorsmore than the set councillor fee.The fee is subject to tax, so councillors need to consider how it mightaffect their assessable income for tax purposes.Councillors can request that they are paid below the fee fixed by theTribunal if the full fee will adversely affect their entitlement to a pension,benefit or other allowance.The Australian Tax Office (ATO) has now made a definitive ruling (ATOID 2007/205) that allows for councillors to redirect their annual fees intosuperannuation on a pre-tax basis. Councils need to determine forthemselves, by council resolution and/or within an appropriate councilpolicy, whether and how councillors may do this. Further informationabout this ruling can be obtained on the ATO’s website: www.ato.gov.auor by calling ph: 13 10 12.A council may decide to reduce or withhold fees from a councillor if theydo not attend meetings for more than three months. Councillors are notentitled to receive a fee if they are suspended from office.Further information about fees can be found in the latest determination onfees from the Remuneration Tribunal, contact details for which arecontained in Appendix II of this publication.Councillors are also encouraged to seek independent financial adviceabout issues relating to the fees they are paid.COUNCILLOR GUIDE PAGE 75

7.2 Expenses and facilitiesUnder the Local Government Act 1993, councils must make provision topay for a councillor’s expenses incurred from carrying out civic duties aselected representatives of their communities. This includes training, traveland telephone expenses. Councils must also provide some facilities toassist councillors to carry out their duties such as access to cars,computers, fax machines, mobile phones, stationery or administrativeassistance.Councillors may only use the facilities provided to them for performingofficial duties. For example, a councillor cannot make personal calls fromthe mobile phone that the council gives them unless there is amechanism for declaring and reimbursing private usage.The range of expenses and facilities provided to councillors variesbetween councils. Each year, the council decides what expenses it willcover and what facilities it will provide as well as limits on these. Thismust be set out in a councillor expenses and facilities policy and adoptedat an open council meeting.Council policies on the provision of expenses and facilities to councillorsshould ensure that councillors are not left out-of-pocket for performingtheir civic duties. They should also ensure that expenses and facilities arereasonable, appropriate and are provided in a transparent andaccountable way.There are guidelines about what councils can put in their policies, butthey may include expenses for:• training courses• conferences• travel to and from meetings, conferences and training• accommodation, meals and refreshments• phone calls or internet use associated with councillor duties• the cost of providing care for children or other dependants whileperforming council duties.• facilities such as mobile telephones, laptops, facsimile machines,stationery etcFurther information about this issue can be found in the Guidelines for thepayment of expenses and the provision of facilities for Mayors andCouncillors in NSW available on the Department of Local Government’swebsite: www.dlg.nsw.gov.au.Councillors should acquaint themselves with their council’s councillorexpenses and facilities policy.COUNCILLOR GUIDE PAGE 76

7.3 Training and professional developmentThe roles and responsibilities of councillors are wide and varied, andthere is a lot to learn. Councils should identify the training needs oftheir councillors and ensure that they have access to ongoingtraining and professional development throughout their term.It is primarily the responsibility of individual councils to identify the trainingand professional development needs of councillors, and to plan anddeliver this training and development. However, the Department of LocalGovernment and the Associations also provide support and guidance tocouncils on this.7.3.1 CouncilsAs soon as possible after the elections councillors should be briefed bycouncil staff on the key tasks to be undertaken by the new council at itsfirst meeting.All councils should prepare and deliver an induction program thatintroduces new councillors to the council, its main policies and protocolsand key staff.Councils are also encouraged to develop and ensure that a councillortraining and professional development plan and program is implementedfor councillors based on a systematic training needs analysis. The natureof this program will vary from council to council, as the analysis willidentify different needs. New councillors should have an opportunity todiscuss their training needs with the council.For assistance in the development of these programs councils shouldrefer to the Department’s Councillor Induction and ProfessionalDevelopment Guide, available from: www.dlg.nsw.gov.au.7.3.2 Department of Local GovernmentThe Department of Local Government is implementing the CouncillorDevelopment Strategy to assist councillors. Elements of this Strategyinclude:• councillor information seminars organised by the Department ofLocal Government in partnership with the Local GovernmentAssociation of NSW and Shires Association of NSW, and LocalGovernment Managers Australia (NSW). All councillors, includingcouncillors that have served a previous term, are expected toattend an information seminar after the local government elections• an online information resource and CD, which will provide accessto information for councillors wanting to know more about particulartopics and issues relevant to their roleCOUNCILLOR GUIDE PAGE 77

• a guide to assist councils in the development of a council-basedinduction and ongoing professional development program(mentioned above).7.3.3 Local Government and Shires Associations of NSWAs a service to their members, the Local Government and ShiresAssociations of NSW provide professional development and trainingspecifically catering to the needs of councillors and council staff. TheAssociations have developed a comprehensive program to assistcouncillors to understand their role and enhance their skills. Theworkshops are delivered in large regional centres as well as inmetropolitan areas or on the council’s own premises.The Associations’ Councillor Professional Development Program includesthe following modules:• Induction for NSW Local Government Councillors• Conflict of Interest and Model Code of Conduct• Financial Skills• Good Governance• Planning Legislation Skills and Knowledge• Effective Meeting Skills• The Effective Chair in Local Government• Strategic Management• Councillors as Change Initiators• Understanding Sustainability for Councillors• Media Skills• Advanced Media Skills• Dynamic Presentation Skills• Connecting with the Community• Lobbying for Success• Community Leadership• Handling Difficult People for Councillors• Speed Reading Skills for CouncillorsThe Associations’ Policy Team provides training modules onSustainability, Sustainable Procurement, Climate Change and NaturalResource Management.Information on the program can be obtained by contacting theAssociations, the contact details for which are in Appendix II of thispublication.COUNCILLOR GUIDE PAGE 78

7.4 Other information and resourcesNew councillors may also benefit from establishing informal supportnetworks and informal mentoring arrangements with more experiencedcouncillors either in their council or in other councils. Many experiencedcouncillors are often happy to mentor new councillors and share theirknowledge and experience and provide advice.Publications, such as Bluett’s Local Government Handbook NSW byDavid Clark (16 th edition, Lawbook Company, 2008) may also provide ahandy reference for new councillors. This guide explains in detail howcouncils operate in NSW, their services and regulatory functions andgives an overview of relevant local government and planning laws. Manycouncillors have found it to be a valuable resource.COUNCILLOR GUIDE PAGE 79

ACKNOWLEDGEMENTSThe Department of Local Government and the Local GovernmentAssociation of NSW and Shires Association of NSW would like to thankthe following organisations for their contribution to and feedback on thispublication: Local Government Managers Australia (NSW) and theNSW Independent Commission Against Corruption (ICAC).The Department and the Associations would also like to thank thefollowing organisations and acknowledge the influence of theirpublications in informing the development of this Guide:Improvement and Development Agency (I&DEA) UK - CouncillorGuide 2008-09NSW Government Regional Communities Consultative Council - Asummary guide to consulting with rural and regional communities” (2002)The Municipal Association of Victoria - Competency Framework forCouncillors Update, September 2006.Joint Standards Australia/Standards New Zealand Committee -Australia/New Zealand standard, risk management, AS/NZS 4360:2004,3 rd edition, August 2004).COUNCILLOR GUIDE PAGE 80

APPENDIX ISKILLS AND KNOWLEDGE CHECKLISTThe most important attribute for you to possess in your role as acouncillor is a desire help people and meet the current and futureneeds of your local community as a whole.While you do not require any special formal qualifications to be acouncillor, having or being able to develop the following skills, knowledgeand attributes will help you to be effective in your role.Councillor SkillsYou may wish to use this checklist to identify areas where you requiretraining or assistance. However, it is also important to recognise thatmany of these skills can be learned and developed over time: Good communication skillsThis includes good listening and interpersonal skills, public speakingskills, the ability to accept alternative points of view as well as theability to negotiate, mediate and resolve conflict. Ability to engage with the communityEffective councillors inform residents about important local issues orcouncil policies and seek their views. Councillors should also have anunderstanding of why this is important and the various ways to consult,such as through meetings, the media, the Internet, public forums,debates and surveys.It is important for councillors to consult with as wide a cross-section ofthe community as possible. Developing networks within the localcommunity can provide a sounding board against which the impact ofcouncil policies can be assessed. Problem solving and analytical skillsThis includes being able to get to the bottom of an issue and to think ofdifferent ways to resolve it, including advantages and disadvantages ofeach. It is also important for councillors to be able to think strategicallyand consider the long term impacts of council policies.COUNCILLOR GUIDE PAGE 81

Teamwork skillsThis includes being able to work with others in meetings and oncommittees and being able to complete any tasks on time thatcouncillors agree to do.Other councillors can be a valuable resource. Assuming they are notalso newly elected, other councillors will already have a good idea ofthe main issues in the area and should have contact with key groupsand individuals. They can show new councillors the ropes andintroduce them to useful people. Organisational skillsThis includes being able to plan and manage time, keep appointmentsand deadlines, make priorities and manage stress. Practical ways todo so include:• Developing a filing system for paperwork and emails• Learning to use existing council record keeping systems soas to prevent the duplication of information• Prioritising what is needed to be read and responded to• Having an effective diary management system Leadership qualitiesThis includes, for example, attributes such as energy and optimism,motivation, resilience, confidence, assertiveness, strategic thinking,advocacy, networking, active listening and negotiating. Ethical accountable behaviourThis includes being able to follow a code of conduct that involves,amongst other things, acting in the best interests of the community asa whole, transparent decision-making and accountability.COUNCILLOR GUIDE PAGE 82

Councillor KnowledgeEffective councillors understand the broader local government picture. Itis important that councillors understand the structure of their council andits responsibilities to the community. This Guide, and the associated CDand online information resource, are useful reference tools for buildingthat knowledge.You should also remember that specialist council staff can provideinformation and advice on a wide variety of issues, but this must happenthrough the general manager, except where he or she has authorisedanother council officer to undertake the role. Knowledge or understanding of strategic planning and financialreporting processesThis includes strategic management and understanding the budgetaryprocess and financial reports. Knowledge or understanding of social justice principlesThis includes having an understanding of why it is important to makesure all people in the community are treated equitably, have the rightto be heard and are able to participate in public forums and events ifthey choose to. Groups of people whose voices are not always heardinclude Aboriginal people, people with a disability, people fromculturally and linguistically diverse backgrounds, older people, womenand young people. Knowledge and understanding of local government functionsThis includes, for example, land use planning, environmentalmanagement and community development and services. Understanding relevant State Government legislationThis includes, for example, the Local Government Act 1993 and theEnvironmental Planning and Assessment Act 1979. For furtherrelevant legislation see “Key Legislation” in Appendix II of this Guide.COUNCILLOR GUIDE PAGE 83

TIPS FOR DEVELOPING SKILLS AND KNOWLEDGE(adapted from: Improvement and Development Agency (I&DEA) UK - Councillor Guide 2008-09)• talk to the mayor and other councillors• talk to the general manager• take up training courses offered by the council or other trainingbodies• read the council’s strategic and operational plans to gain anoverview of the council’s agenda and priorities• learn how the council makes decisions and how you can influencethese on behalf of the people you represent• take on new responsibilities with care – don’t take on too much toosoon• learn to manage the paperwork – learn what you need to read andwhat you don’t, and don’t hoard outdated or irrelevant material• set up a good filing system• concentrate on matters that interest you and learn them thoroughly• set up a schedule for visiting the key groups in your area over yourfirst year – including faith groups, voluntary groups, majoremployers, schools, youth centres, tenants’ and residents’associationsCOUNCILLOR GUIDE PAGE 84

APPENDIX IIKEY ORGANISATIONS, RESOURCES ANDLEGISLATION1.1 Key OrganisationsFurther information on local government can be obtained from the followingorganisations or their websites.DEPARTMENT OF LOCAL GOVERNMENTStreet address: (Nowra Office) Postal address: (Nowra Office)Level 1, 5 O’Keefe Avenue Locked Bag 3015NOWRA NSW 2541 NOWRA NSW 2541Phone: 02 4428 4100 Fax: 02 4428 4199TTY: 02 4428 4209Street address: (Sydney Office) Postal address: (Sydney Office)Level 9, 323 Castlereagh Street Locked Bag A5045SYDNEY NSW 2000 SYDNEY SOUTH NSW 1235Phone: 02 9289 4000 Fax: 02 9289 4099Email: dlg@dlg.nsw.gov.auWebsite: www.dlg.nsw.gov.auLOCAL GOVERNMENT ASSOCIATION OF NSW AND THE SHIRESASSOCIATION OF NSWStreet address:Postal Address:Level 8, 28 Margaret Street GPO Box 7003SYDNEY NSW 2000 SYDNEY NSW 2001Phone: (02) 9242 4000 Facsimile: (02) 9242 4111Email: lgsa@lgsa.org.auWebsite: www.lgsa.org.auCouncillor Professional Development Program:Phone: (02) 9242 4181/3 Facsimile: (02) 9242 4188Email: learning@lgsa.org.auWebsite: www.lgsa.org.auCOUNCILLOR GUIDE PAGE 85

LOCAL GOVERNMENT MANAGERS AUSTRALIA (NSW)Street address:Postal Address:U25, 8 Avenue of the Americas PO Box 6940NEWINGTON NSW 2128 SILVERWATER NSW 2128Phone: (02) 9648 1071 Facsimile: (02) 9648 1120Email: lgmansw@lgmansw.com.au Website: www.lgmansw.com.auCOUNCIL WEBSITESMost NSW councils have their own website. These may be accessed bysearching by the council’s name, or via the website of the LocalGovernment and Shires Associations (under ‘Council websites’) or fromthe Department of Local Government’s website (under ‘Local GovernmentDirectory’).INDEPENDENT COMMISSION AGAINST CORRUPTIONStreet address:Postal Address:Level 21, 133 Castlereagh St GPO Box 500SYDNEY NSW 2000 SYDNEY NSW 2001Phone: (02) 8281 5999 Facsimile: (02) 9264 5364TTY: (02) 8281 5773 Toll Free: 1800 463 909Email: icac@icac.nsw.gov.au Website: www.icac.nsw.gov.auThe Independent Commission Against Corruption (ICAC) was created bythe Independent Commission Against Corruption Act 1988 to promote theintegrity and accountability of public administration in NSW by:• investigating, exposing and preventing corruption involving oraffecting public authorities or public officials, and• educating public authorities, public officials and members of thepublic about corruption and its detrimental effects on publicadministration and on the community.The ICAC is a public authority, but is independent of the government ofthe day, and is accountable to the people of NSW through the NSWParliament.COUNCILLOR GUIDE PAGE 86

NSW OMBUDSMANStreet address:Postal Address:Level 24, 580 George StAs for street address.SYDNEY NSW 2000Phone: (02) 9286 1000 Facsimile: (02) 9283 2911TTY: (02) 9264 8050 Toll Free: 1800 451 524Email: nswombo@ombo.nsw.gov.auWebsite: www.nswombudsman.nsw.gov.auThe NSW Ombudsman is an independent and impartial watchdog whosejob is to make sure that the agencies they watch over fulfill their functionsproperly and improve their delivery of services to the public. TheOmbudsman helps agencies to be aware of their responsibilities to thepublic, to act reasonably and to comply with the law and best practice inadministration. The Ombudsman is independent of the government of theday and accountable to the public through the NSW Parliament.NSW DEPARTMENT OF PLANNINGStreet address:Postal address:23 – 33 Bridge Street GPO Box 39SYDNEY NSW 2001 SYDNEY NSW 2001Phone: 02 9228 6111 Fax: 02 9228 6455Email: information@planning.nsw.gov.auWebsite: www.planning.nsw.gov.auThe Department of Planning is responsible for the administration of theEnvironmental Planning and Assessment Act 1979 and the Heritage Act1977.NSW DEPARTMENT OF ENVIRONMENT AND CLIMATE CHANGE(DECC)Street address:Postal address:59 – 61 Goulburn Street PO Box A290SYDNEY NSW 2000 SYDNEY SOUTH NSW 1232Phone: 02 9995 5000 Fax: 02 9995 5999Email: info@environment.nsw.gov.auWebsite: www.environment.nsw.gov.auDECC is responsible for the administration of the Protection of theEnvironment Operations Act 1997 and the Waste Avoidance andResource Recovery Act 2001.COUNCILLOR GUIDE PAGE 87

NSW ROADS AND TRAFFIC AUTHORITY (RTA)Street address:Postal address:Centennial Plaza, 260 Elizabeth St PO Box K198SURRY HILLS NSW 2010 HAYMARKET NSW 1240Phone: 131 782 Fax: 02 9218 6286Website: www.rta.nsw.gov.auThe RTA is responsible for the administration of the Roads Act 1993 andthe Road Transport (Safety & Management) Act 1993.NSW DEPARTMENT OF PRIMARY INDUSTRIES (DPI)Street address:Postal address:161 Kite St Locked Bag 21ORANGE NSW 2800 ORANGE NSW 2800Phone: 02 6391 3100 Fax: 02 6391 3336Website: www.dpi.nsw.gov.auDPI is responsible for the administration of the Noxious Weeds Act 1993and various other pieces of legislation.1.2 Other Key BodiesLOCAL GOVERNMENT GRANTS COMMISSIONPostal address:Locked Bag 3015NOWRA NSW 2541Phone: (02) 4428 4132 Fax: 02 4428 4199Email: dlg@dlg.nsw.gov.auWebsite: www.dlg.nsw.gov.auThe primary function of the Local Government Grants Commission is tomake recommendations to the Minister for Local Government on theallocation to local governing bodies in NSW of general-purpose grantsunder the provisions of the Commonwealth Local Government (FinancialAssistance) Act 1995.The Commission may also report on any matter referred to it by theMinister.COUNCILLOR GUIDE PAGE 88

LOCAL GOVERNMENT BOUNDARIES COMMISSIONPostal address:Locked Bag A5045SYDNEY SOUTH NSW 1235Phone: (02) 9289 4000Fax: 02 9289 4099Email: pidt@dlg.nsw.gov.auWebsite: www.dlg.nsw.gov.auThe Local Government Boundaries Commission is a statutory authorityconstituted under section 263 of the Local Government Act 1993. It hasthe function of examining and reporting on any matter referred to it by theMinister for Local Government regarding the boundaries of localgovernment areas and the areas of operation of county councils. Section263(3) specifies factors that the Boundaries Commission must haveregard to when considering amalgamation or boundary alterationproposals.LOCAL GOVERNMENT PECUNIARY INTEREST AND DISCIPLINARYTRIBUNALPostal address:PO Box A190SYDNEY SOUTH NSW 1235Phone: 02 9267 9216Fax: 02 9267 2314Email: pidt@dlg.nsw.gov.auWebsite: www.dlg.nsw.gov.auThe Local Government Pecuniary Interest and Disciplinary Tribunal isconstituted under Chapter 14, Part 4 of the Local Government Act 1993 tohold hearings into and decide allegations of contraventions of Part 2 ofthat Chapter (which deals with duties of disclosure of pecuniary interests)and to perform such other functions as are conferred or imposed on it bythe Act (section 489).COUNCILLOR GUIDE PAGE 89

LOCAL GOVERNMENT REMUNERATION TRIBUNALPostal address:GPO Box 5341SYDNEY NSW 2001Phone: (02) 9228 3570Fax: 02 9228 3578Email: Mr Emmanual Sklavounos – Executive Officer -sklavoe@premiers.nsw.gov.auWebsite: www.dlg.nsw.gov.auThe Local Government Remuneration Tribunal is constituted underChapter 9, Division 4 of the Local Government Act 1993. The member ofthe Tribunal is appointed by the Governor for up to three years and isassisted by two Assessors. It is responsible for categorising councils,county councils and mayoral offices to determine the range of annual feesto be paid to mayors, councillors, members of county councils andchairpersons in each category. The Tribunal is required to make adetermination by no later than 1 May each year and make a report to theMinister within 7 days of making that determination. The Report is to bepublished in the Government Gazette and also tabled in each House ofParliament.COUNCILLOR GUIDE PAGE 90

2.1 Key LegislationIt is important that councillors have an understanding of the legislationunder which councils have responsibilities. The following legislation fallswithin the portfolio responsibilities of the Minister for Local Government:Local Government Act 1993This is the primary piece of legislation governing councils and countycouncils in NSW. The Act provides the legal framework for an effective,efficient, environmentally responsible and open system of localgovernment in NSW.The Act also regulates the relationships between the people and bodiescomprising the system of local government and encourages and assiststhe effective participation of local communities in the affairs of localgovernment.The Act gives councils the ability to provide goods, services and facilities,and to carry out activities, appropriate to the current and future needs oflocal communities and of the wider public. It also gives councils theresponsibility for administering some regulatory systems and a role in themanagement, improvement and development of the resources of theirareasThe Local Government (General) Regulation 2005 supports the powers ofcouncils under the Act.Companion Animals Act 1998The principal object of this Act is to provide councils with powers toensure the effective and responsible care and management of companionanimals (cats and dogs).The Act also requires councils to promote awareness within its area of therequirements of this Act with respect to the ownership of companionanimals, and to take such steps as are appropriate to ensure that it isnotified or otherwise made aware of the existence of all dangerous andrestricted dogs that are ordinarily kept within its areaThe Companion Animals Regulation 2008 supports the powers ofcouncils under the Act.Swimming Pools Act 1992This Act applies to swimming pools (both outdoor and indoor) that aresituated, or proposed to be constructed or installed, on premises on whicha residential building, a moveable dwelling, a hotel or a motel is located. Itdoes not apply to swimming pools that are situated, or proposed to beconstructed or installed, on any premises occupied by the Crown or by apublic authority.COUNCILLOR GUIDE PAGE 91

The Act requires councils to take such steps as are appropriate to ensurethat it is notified of the existence of all swimming pools to which this Actapplies that are within its area. The Act also requires councils to promoteawareness within their area of the requirements of this Act.The Swimming Pools Regulation 2008 supports the powers of councilsunder the Act.Impounding Act 1993This Act empowers councils and other authorised persons to impoundand deal with animals and articles in public places and places owned orunder the control of certain public authorities if, in the case of animals,they are unattended or trespassing or, in the case of articles, they havebeen abandoned or left unattended. It also provides for the release ofimpounded animals and articles that are claimed by their owners, and forthe disposal of impounded animals and articles that are not claimed bytheir owners and, if they are disposed of by sale, to provide for thedisposal of the proceeds of sale.The Impounding Regulation 2008 supports the powers of councils underthe Act.2.2 Other key legislation under which councils haveresponsibilitiesEnvironmental Planning and Assessment Act 1979 (EPAA) - Ministerfor PlanningCouncils have a responsibility under the EPAA to encourage the propermanagement, development and conservation of natural and artificialresources for the purpose of promoting the social and economic welfareof the community and a better environment. The Act also requirescouncils to promote and co-ordinate the orderly and economic use anddevelopment of land.Under the EPAA councils also have responsibility for:• consulting with relevant bodies in land use plan preparation• assessing and weighing the interests and demands of differentsections of the community with those of the development applicantin the determination of planning policies and developmentapplications• ensuring that Local Environmental Plans (LEPs) and developmentcontrol decisions are related to the sound management of theenvironment and its resources• identifying local planning needs• developing policies addressing issues in the LEPCOUNCILLOR GUIDE PAGE 92

• ensuring that responsibilities for Environmental Impact Assessmentare met.The Environmental Planning and Assessment Regulation 2000 supportsthe powers of councils under the Act.Protection of the Environment Operations (POEO) Act 1997 -Minister for the EnvironmentThis Act provides councils with powers to protect, restore and enhancethe quality of the environment, while having regard to the need tomaintain ecologically sustainable development. The POEO Act alsoprovides increased opportunities for public involvement and participationin environment protection, and to rationalise, simplify and strengthen theregulatory framework for environment protection.The Act also aims to reduce risks to human health and prevent thedegradation of the environment by the use of mechanisms that promotepollution prevention and improve the monitoring and reporting ofenvironmental quality on a regular basis.The Protection of the Environment Operations (General) Regulation 1998supports the powers of councils under the Act.Waste Avoidance and Resource Recovery Act 2001 – Minister for theEnvironmentThis Act provides councils with powers to achieve integrated waste andresource management planning, programs and service delivery. Theoverall aim of the Act is to encourage the most efficient use of resourcesand to reduce environmental harm in accordance with the principles ofecologically sustainable development. The Act also aims to minimise theconsumption of natural resources and the final disposal of waste byencouraging the avoidance of waste and the reuse and recycling ofwaste.Threatened Species Conservation Act 1995 – Minister for theEnvironmentThis Act protects threatened species in NSW. It places significantobligations on local councils due to cognate provisions in the EPAA inrelation to councils assessing impacts of development proposals on listedthreatened species, populations and ecological communities and theirhabitats.COUNCILLOR GUIDE PAGE 93

Noxious Weeds Act 1993 - Minister for Primary IndustriesThis Act provides councils and county councils with powers to assist inreducing the negative impact of weeds on the economy, community andenvironment of NSW by establishing control mechanisms to prevent theestablishment of significant new weeds, restrict the spread of existingsignificant weeds, and reduce the area of existing significant weeds. Italso provides for the monitoring of and reporting on the effectiveness ofthe management of weeds.The Noxious Weeds Regulation 2008 supports the powers of councilsand county councils under the Act.Australian Road Rules – Minister for RoadsThis is the primary piece of legislation relating to parking control, includingsignage and road markings.Road Transport (General) Act 2005 – Minister for RoadsThis Act includes provisions for issue, service and payment of penaltynotices; the liability of vehicle owners in relation to offences (includingparking); and inclusion of parking offences in contravention of anyregulation made under the Road Transport (Safety and TrafficManagement) Act 1999.Road Transport (General) Regulation 2005 – Minister for RoadsThis Regulation defines different classes of persons as authorisedpersons within the meaning of the Local Government Act for the purposesof s679 of the LGA (Penalty notices for certain offences).Road Transport (Safety and Traffic Management) Act 1999 - Ministerfor RoadsThis Act allows for the making of regulations regarding the parking ofvehicles and parked or stopped vehicles on roads and road-related areas,including pay parking.Road Transport (Safety and Traffic Management) (Road Rules)Regulation 1999 – Minister for RoadsThis Regulation provides for the use of pay parking schemes includingmeters, tickets and coupons, parking permits and mobility parkingscheme authorities. The application of monies raised from parking maybe applied by councils at its discretion, but it is also subject to therequirements of the Local Government Act. The parking authority mustalso meet all costs associated with administering and maintaining a payparkingscheme.COUNCILLOR GUIDE PAGE 94

The offences relating to parking are contained in this Regulation. It alsogives councils the ability to reach agreement with other councils inrelation to common pay parking schemes and pass a resolution in relationto fixed fees in accordance with guidelines set by the RTA.Transport Administration Act 1988 – Minister for RoadsThis Act includes the power to delegate functions of the Roads and TrafficAuthority and powers to regulate traffic management and safety, includingtraffic control devices and special event parking schemes, as well as theinterrelationship with laws relating to local government.Community Relations Commission and Principles ofMulticulturalism Act 2000 – Minister for CitizenshipThis legislation requires councils to implement the principles ofmulticulturalism. This is reinforced in a council’s charter under section 8 ofthe Local Government Act which requires councils to carry out theirfunctions in a way which is consistent with the principles and to activelypromote the principles.The Department of Local Government and the Community RelationsCommission for a multicultural NSW have produced Implementing thePrinciples of Multiculturalism Locally: Information Kit for Councils to assistcouncils in meeting their obligations under the Act.This is an important planning tool to assist councils to develop andimplement multicultural strategies in a flexible way best suited to theneeds of their local community and to their existing planning and reportingstructures.The Kit is available for download on both the Commission’s and theDepartment’s websites.2.3 Legislation under which councillors have personalresponsibilitiesCouncillors also have personal responsibilities to comply with therequirements of other Acts and Regulations. The following are only someof the legislation with which councillors must comply. The LocalGovernment Association and Shires Association can provide moredetailed support to assist councillors meet their compliance obligations.Councillors should also seek advice and be guided by their generalmanager in compliance matters.State Records Act 1998This Act regulates the manner in which councils are required to managetheir records. All correspondence received by a council and councillors intheir official capacity could be considered records under this legislation.COUNCILLOR GUIDE PAGE 95

It is unlikely that correspondence to councillors about a councillor’spersonal affairs would be included in the definition of a record. However,correspondence to councillors from residents and ratepayers about thepersonal matters of the residents and ratepayers as they relate to acouncil‘s business may be included.Councils should have policies in place for the good management ofcouncil’s records to assist councillors comply with this legislation.Compliance with the State Records Act 1998 will also assist in complyingwith related legislation such as the Freedom of Information Act 1989 andthe Privacy and Personal Information Protection Act 1998.Freedom of Information Act 1989 & Privacy and PersonalInformation Protection Act 1998Access to council records by members of the public is regulated by theFreedom of Information Act 1989, together with section 12 of the LocalGovernment Act 1993. The main intention of these pieces of legislation isto facilitate access to council documents and promote open andtransparent government and accountability, wherever possible.However this is balanced by the need for councils to keep certaininformation confidential and protect personal and private information.Councillors should be aware of the importance of protecting personal andprivate information of individuals and maintaining the confidentiality ofcertain council information. This includes information relating tocommercial transactions, personnel matters, security matters, items ofAboriginal significance; and information that would, if disclosed, prejudicecouncil’s commercial position and expose the councillor responsible tosanctions.Council policies for the management of confidential information is goodpractice. In addition, each council must have a Public Officer whoseresponsibilities include implementation of council’s policies and processesthat are designed to ensure that council complies with these Acts.Individual inductions by councils should provide councillors with details ofthese policies and related processes.Further information about councillor obligations under the State RecordsAct 1998 and the Freedom of Information Act 1989 can be downloadedfrom the State Records website: www.records.nsw.gov.au.Information about the Privacy and Personal Information Protection Act1998 can be found on the website of the Office of the NSW PrivacyCommissioner at:http://www.lawlink.nsw.gov.au/lawlink/privacynsw/ll_pnsw.nsf/pages/PNSW_index#COUNCILLOR GUIDE PAGE 96

Occupational Health and Safety Act 2000It is important that councillors ensure that they are familiar with the keyprovisions of the Occupational Health and Safety Act 2000 (the OHS Act).Councillors must comply with local OHS arrangements at councilworkplaces and have an OHS induction. Councils should have localpolicies dealing with arrangements for accessing workplaces and buildingsites, including such things as personal protective equipment. Councilsshould also have policies relating to smoking, harassment and bullying inthe workplace.For more information about the OHS Act visit the Workcover NSWwebsite at www.workcover.nsw.gov.au.Anti-Discrimination Act 1997This legislation prohibits discrimination against any person on the basis oftheir race, gender, disability, religious beliefs, age, marital status,sexuality and carer’s responsibilities.For further information about the Anti-Discrimination Act 1997 visit theAnti-Discrimination Board website http://www.lawlink.nsw.gov.au/ADB.A range of Anti-Discrimination publications are also available fordownload on the Department of Local Government websitewww.dlg.nsw.gov.au, including the Anti Discrimination Guidelines forLocal Government Councillors.There are also specific EEO requirements in the Local Government Act.For further information about EEO see the Department of Premier andCabinet’s EEO home page www.eeo.nsw.gov.au.2.4 Further information about NSW legislationThe Local Government Act 1993 and all other NSW Acts and regulationsmay be accessed on the website of the Parliamentary Counsel’s Office atwww.legislation.nsw.gov.au.COUNCILLOR GUIDE PAGE 97

APPENDIX IIIDEALING WITH THE MEDIAThe following information has been developed by Ms Kristie Down,Manager Communications at the Local Government and ShiresAssociations of NSW.The Associations’ Local Government Learning Solutions team also runsmedia training courses, which are highly recommended for both newcouncillors and as a refresher for councillors who have served previously.Dealing with the mediaMedia regularly contact councils for comment on local issues, andcouncils rely on media to promote upcoming events and projects, and tovoice their views on certain issues.The media and councils need each other, but it is a sensitive relationshipfraught with risk.Most councils have media guidelines and the mayor is often the officialspokesperson.There are, however instances where a councillor is best placed tocomment– either because the mayor isn’t available, or it is an issue ofparticular interest/ expertise to the councillor.Below are some tips on getting the most out of the media and avoidingthe pitfalls.GeneralBe accessible and responsive – journalists are simply doing theirjob and are the gateway to communicating council views, events andprojects.Follow council policies and guidelines on media contact! Nothing is really ‘off the record’ so be prepared for everything yousay to a journalist to be used.! Only say ‘no comment’ if you have a reasonable excuse (like theissue is in court). It is better to provide a general statement thannothing at all.! Stick to matters of official council business – avoid personalcomments about other issues and individuals.COUNCILLOR GUIDE PAGE 98

If you are approached for an interviewKnow your subject and have an understanding of the likelyquestions and angle of the journalist’s story.Ask yourself who the audience is and what you want tocommunicate to them.Devise a set of key messages that are short and precise and getyour messages across.Practice! Even the most seasoned media performers have toprepare to get it right.If you don’t know the answer to a question, do not make somethingup or guess. Simply say “I will have to get back to you”, “I’ll have toconfirm” or repeat one of your key messages.Don’t be afraid to pause while you think of the correct, and best,answer.Don’t be persuaded to say something that isn’t true, isn’t your viewor isn’t appropriate for you to comment on.For TV Avoid wearing dark or very bold colours - keep your outfit simple. No sunglasses! Don’t fidget or shift your eyes.Keep your sentences short and sharp.Don’t be afraid to show passion or some emotion, but control it.Repeat your key messages as much as possible.Press releasesKeep them to one page.Make the heading catchy and interesting.Make sure the first sentence captures the most newsworthyinformation.Keep sentences and paragraphs short and to the point.Make sure there are contact numbers for further comment at thebottom of the release.Ensure that spelling and grammar are accurate.COUNCILLOR GUIDE PAGE 99

APPENDIX IVTIPS FOR EFFECTIVE CONSULTATIONThe following checklist has been adapted from the NSW GovernmentRegional Communities Consultative Council’s “A summary guide toconsulting with rural and regional communities”.Identify the issueIdentify theobjective of theconsultationIdentify who youneed to talk toWhat techniqueswill be neededAllocate sufficientresources to theprocessInvolveparticipants in theprocess• What is the nature of the issue• What needs to be discussed• What are the possible options or contentiousissues• What are you aiming to achieve• Why are you talking to the community• What information do you need to find out• Who is affected by the issue• Can target groups be identified• What are the particular needs of differentgroups• What particular features should be includedto ensure that all members involve feelincluded (eg: Aboriginal community members,young people, families, people withdisabilities)• Are the techniques appropriate for theaudience• Will they best meet the needs of the program• Would a neutral facilitator assist• Is consensus decision making a goal• Has sufficient time been allocated to planning• Has sufficient information been provided toparticipants• Is written information concise and jargon free• Are there appropriate aids to assistcommunication (eg interpreters and hearingloops), are special interests respected, is theprocess understoodCOUNCILLOR GUIDE PAGE 100

Maximise theability of thecommunity toparticipateRealistictimetablesResourcemanagementOutcomes• What are the most appropriate methods tocontact participants• Is the consultation resourced sufficiently totake into account distance, travel time etc• Is the location appropriate for the participants(not just the council)• Is childcare, aged care and disabled accessprovided• Has adequate notice been given• Have participants been encouraged toparticipate through personal contact• Have cultural protocols been observed (eg:welcome to country)• Can the expenses of low income participantsbe met• Is consultation one-off or ongoing• Is the timetable practical and realistic• What are the time barriers and whatstrategies are in place if they cannot be metto the communities satisfaction• What resources are needed• Is training or are external personnel needed• Are existing community resources being used• Can this consultation or meeting beundertaken within an existing communitymeeting process• Are the outcomes clear to everyone• Are the outcomes agreed• How will the outcomes be documented• How will the information be used• How will decisions be reached• How will the community be informed of theoutcomesEvaluation • How will success be defined and measured• How can the community participate in theevaluation process• How is the evaluation recorded• How are the results of the evaluationprovided back to the community participantsand wider communityCOUNCILLOR GUIDE PAGE 101

APPENDIX VSUSTAINABILITY1. Ecologically Sustainable DevelopmentLocal councils are responsible for good governance and the care andprotection of local communities within a framework of ecologicallysustainable development (ESD). Under the NSW Local Government Act1993 councillors are required to have regard to these principles.The Act dictionary states that principles of ecologically sustainabledevelopment means the following statements of principle:Ecologically sustainable development requires the effective integrationof economic and environmental considerations in decision-makingprocesses. Ecologically sustainable development can be achievedthrough the implementation of the following principles and programs:(a) the precautionary principle - namely, that if there are threatsof serious or irreversible environmental damage, lack of fullscientific certainty should not be used as a reason for postponingmeasures to prevent environmental degradation.In the application of the precautionary principle, public and privatedecisions should be guided by:(i) careful evaluation to avoid, wherever practicable, seriousor irreversible damage to the environment, and(ii) an assessment of the risk-weighted consequences ofvarious options,(b) inter-generational equity—namely, that the present generationshould ensure that the health, diversity and productivity of theenvironment is maintained or enhanced for the benefit of futuregenerations,(c) conservation of biological diversity and ecological integrity—namely, that conservation of biological diversity and ecologicalintegrity should be a fundamental consideration,(d) improved valuation, pricing and incentive mechanisms—namely, that environmental factors should be included in thevaluation of assets and services, such as:(i) polluter pays—that is, those who generate pollution andwaste should bear the cost of containment, avoidance orabatement,(ii) the users of goods and services should pay prices basedon the full life cycle of costs of providing goods and services,including the use of natural resources and assets and theultimate disposal of any waste,COUNCILLOR GUIDE PAGE 102

(iii) environmental goals, having been established, should bepursued in the most cost effective way, by establishingincentive structures, including market mechanisms, thatenable those best placed to maximise benefits or minimisecosts to develop their own solutions and responses toenvironmental problems.2. Policy support from the Local Government and ShiresAssociationsDecision making tools have traditionally focused primarily on aconsideration of economic factors. In line with a shift in thinking within thewider community, new tools, including “Triple Bottom Line” (TBL)accounting, are increasingly being applied within the local governmentsector. These tools provide an integrated way to incorporate theeconomic, environmental and social aspects of sustainability into theoperational, planning, decision-making and reporting practices of localgovernment. A fourth aspect around governance, or civic leadership, isincluded in the Quadruple Bottom Line.The Local Government and Shires Associations of NSW provide policysupport to councils in a range of areas to help meet their ESD obligations,and in progressing towards sustainability.Further information about the Associations’ sustainability initiativesoutlined in this appendix can be found at: www.lgsa.org.au.Climate changeClimate related risks need to be understood by council planners, resourcemanagers, and councillors. Councils need to reduce their greenhouse gasemissions and adapt to climate change. The Associations’ website has aClimate Change Action Pack including the NSW Mayors’ Agreement onClimate Change to provide practical advice to councils on how toundertake projects to mitigate or adapt to climate change. The ClimateChange Action Pack can be downloaded at: http://www.lgsaplus.net.au/www/html/1903-climate-change-action-pack.asp.The Associations have successfully negotiated with the NSW Departmentof Environment and Climate Change a two year funded project to assistcouncils to reduce their greenhouse gas emissions and adapt to climatechange.The core objectives of the project (derived from the NSW GreenhousePlan) are to produce a package for councils to assist them to address andlessen their impact on climate change, and adapt to changes that mayoccur over the next 10-20 years and beyond.COUNCILLOR GUIDE PAGE 103

Natural resource managementThe role of local councils in natural resource management is discussed inSection 5.3. However, the Associations maintain a monthly email networkcalled the NRM Update for Local Government, which provides councillorsand council staff with up-to-date information on a wide range of NRMissues. Contributions from councils are most welcome, and councillorscan join by emailing:nrm_localgovt-subscribe@yahoogroups.com.au.Waste management / recyclingThe management of waste has become an important environmental,economic and social issue for councils. In many instances, councils arefinding it necessary to identify and implement more economically viableand environmentally sound ways to undertake their business activities.This includes initiatives such as recovering resources for reuse, recyclingand recovering energy prior to implementing sustainable strategies for themanagement of the residual waste stream to protect public health and theenvironment.Water managementCouncils have many water issues to deal with, often as the waterauthority. These issues include water reform, pricing, water recycling,water restrictions and drought management, stormwater management,and Aboriginal community water and sewerage management. The WaterLoss Management Program (WLMP) is a $22 million joint initiative of theAssociations and the Water Directorate with partial funding from theAustralian Government (through the Water Smart Australia program). Theproject supports NSW local water utilities' efforts to reduce leakage fromtheir drinking water distribution systems.ProcurementSustainable procurement can have social, environmental and economicbenefits, assisting councils to address the “triple bottom line”, consistentwith the principles of ecologically sustainable development (ESD). Thisassists councils to meet their charter obligations under section 8 of theLocal Government Act.The Associations manage the “Sustainable Choice” program to assistcouncils to make purchasing decisions that are more sustainable. Furtherinformation can be found at the Sustainable Choice websitehttp://www.lgsa-plus.net.au/www/html/956-sustainable-choice.asp.COUNCILLOR GUIDE PAGE 104

The Associations have also formed a company on behalf of theirmembers, called Local Government Procurement (LGP), to create aprocurement operation dedicated to meeting the specific needs of LocalGovernment. LGP has been established to save councils significantmoney through "whole of Local Government" supply arrangement and toassist in making the procurement process reach "best practice".For further information about LGP visit www.lgp.org.au.Local Agenda 21A Local Agenda 21 program comprises systems and processes tointegrate environmental, economic and social sustainability. It was firstdescribed in Agenda 21 - the global blueprint for sustainability that wasagreed at the United Nations Conference on Environment andDevelopment in 1992 (the Rio Earth Summit). Chapter 28 of Agenda 21identifies local authorities as the sphere of governance closest to thepeople, and calls upon all local authorities to consult with theircommunities and develop and implement a local plan for sustainability - a'Local Agenda 21'.Founded on a strong partnership between local government and thecommunity, the progress towards local sustainable development will beguided by the preparation of a long term strategic action plan thatintegrates existing policies and programs and an agreed future direction.3. Developing a sustainability culture within councilDeveloping a culture where sustainability principles are integrated intocouncil policies, services, and practices is a long term one. The way inwhich sustainability becomes a part of all council decisions andoperations is dependent on each council.Sustainability has many definitions. It is defined by the BruntlandCommission as “forms of progress that meet the needs of the presentwithout compromising the ability of future generations to meet theirneeds.” Despite its use by Federal, State and local governments since theearly 1990s, the word “sustainability” has not yet become an integral partof our language, our lifestyle or our way of thinking.However, councils are beginning to respond to global pressures such asclimate change, the depletion of our oil supplies, and the ever-growing listof species at risk of disappearing forever. Councils have an important rolein leading society’s journey towards sustainability.The NSW Statutory Instrument BASIX, the Building Sustainability Index,assists councils in managing their sustainability and natural resourcemanagement responsibilities. BASIX requires developments to meetcertain criteria in terms of their water and energy efficiency. Moreinformation about BASIX can be found at: www.basix.nsw.gov.au.COUNCILLOR GUIDE PAGE 105

The following initiatives may also assist councils in developing asustainability culture:3.1 The Urban Sustainability Support Alliance (USSA)The Urban Sustainability Support Alliance (USSA) aims to help NSWcouncils progress towards sustainability. The USSA is a partnershipbetween the Local Government and Shires Associations of NSW, theDepartment of Environment and Climate Change, Sydney CoastalCouncils Group Inc, Local Government Managers Australia NSW,Institute of Sustainable Futures, Manly Council and Eurobodalla ShireCouncil.USSA delivers training and professional development sessions,establishes and maintains communication networks, shares experiencesand lessons learnt by councils in the journey towards sustainability,coordinates mentoring programs, and develops sustainability tools andresources.Further information about the USSA can be found at:http://www.lgsa-plus.net.au/www/html/2312-urban-sustainability-supportalliance.asp.3.2 Sustainability Health CheckDeveloped by Sustainable Futures Australia for LGMA NSW and theDepartment of Environment and Climate Change the NSW LocalGovernment Sustainability Health Check is a "how to" guide and a tool fororganisational change, a way to streamline the complexities ofsustainability and something that all councils can use, whatever theirstage in the journey towards sustainability.The Sustainability Health Check management tool can help a councilimprove its performance by integrating the different elements andprinciples of sustainability throughout the organisation. Councils canmeasure the extent to which sustainability practices and principles are inplace to create a culture of sustainability in the workplace, in chambersand in its relationship with the community.The Sustainability Health Check enables council to identify improvementsto management and operational areas including structures, policies andsystems which are vital to help create a culture of sustainability. Coveringthe quadruple bottom line of good business practice it addresses theoutcomes of council decisions and activities through the areas of ecology,society, economy, human habitat (infrastructure) and governance.A copy of the Sustainability Health Check can be downloaded from:http://www.lgmansw.com.au/default.asp?id=84&parentid=83&parentid2=84COUNCILLOR GUIDE PAGE 106

APPENDIX VICOUNCILLOR GUIDE FEEDBACK FORMThe Department of Local Government welcomes feedback on this Guideto improve it for future editions. Please take the time to tell us what youthink and forward your response by email to dlg@dlg.nsw.gov.au or byfax to (02) 4428 4199. You don’t need to put your name or the name ofyour council on the form.Please tick one box1 How many terms have you served as a councillor?I am currently serving my first termCompleted 1 termCompleted 2 termsCompleted 3 or more terms2 Did you attend a councillor information session run by the Departmentafter the 2008 elections?YesNo3 How easy is it to read this Guide?Not easyOkVery easyComments4 How would you rate your understanding of your role and responsibilitiesas a councillor prior to reading this Guide?PoorAdequateVery goodCOUNCILLOR GUIDE PAGE 107

Comments (Question 4)5 To what extent did this Guide improve your understanding of your roleand responsibilities as a councillor?Not at allSomewhatA lotComments6 How adequate is the overall content of this Guide?PoorAdequateVery goodComments7 Please write down anything in this Guide that you found particularlyuseful.8 Please write down anything in this Guide that you did not find useful.COUNCILLOR GUIDE PAGE 108

9 Please write down any topics in this Guide that you think need expandingon or should be added.10 Please write down any other comments about the Guide.The Department of Local Government issues emails alerting councils to anychanges in legislation, policy or guidelines. If you would like to receive thesealerts please write down your email address below. Alternatively, you can emailyour request to the Department at dlg@dlg.nsw.gov.au.Thank you. The Department intends surveying all councillors in June 2009 andJune 2011 to seek further feedback on the effectiveness of its CouncillorDevelopment Strategy.COUNCILLOR GUIDE PAGE 109