Rodney Stevens
Clarence Valley residents are being asked for their input on the financial model for councils in NSW after the Independent Pricing and Regulatory Tribunal IPART was asked by the NSW Government to investigate and report on the issue.
The review of NSW councils’ financial model was recommended by IPART in late 2023 as part of the Tribunal’s review of rate peg methodology and supported by Minister for Local Government, Ron Hoenig.
IPART Chair Carmel Donnelly said as part of its 2023 review of the local council rate peg methodology, stakeholders raised concerns about the affordability of council rates in the current cost of living climate, as well as community consultation, financial management and financial sustainability of councils in NSW.
“IPART noted many of the issues raised cannot be fixed by the rate peg or the special variation process and we therefore recommended the NSW Government commission an independent review of the financial model for councils to identify improvements,” she said.
“We have received the draft Terms of Reference for this review and we’re seeking feedback on them from the community, ratepayers, councils, former and current councillors and council staff.”
The investigation and report was requested by NSW Premier Chris Minns last month under section 12a of the Independent Pricing and Regulatory Tribunal Act 1992, and the draft terms of reference for the process can be found at https://www.ipart.nsw.gov.au/documents/terms-reference/draft-terms-reference-nsw-council-financial-model-review-january-2024?timeline_id=16692
These draft terms of reference set out the scope for the review and ask IPART to review and make recommendations on matters including:
- The visibility of councillors and the community over the financial and operational performance of their councils.
- Whether current budget and financial processes used by councils are delivering value-for-money for ratepayers and residents.
- Whether the current funding model will sustainably support the needs of communities.
- Whether councils (both councillors and staff) have the financial capacity and capability to meet current and future needs of communities.
- How better planning and reporting systems can improve long term budget performance, transparency and accountability to the community.
- Any other matters IPART considers relevant.
Feedback on the draft Terms of Reference is welcomed by IPART from the community, ratepayers, councils, and councillors before March 15, 2024.
Ms Donnelly said IPART may recommend changes to the Terms of Reference as a result of the feedback they receive.
Following the response on the draft Terms of Reference, IPART will produce an Issues Paper, followed by a Draft Report, then a Final Report on the financial model for councils in NSW.
Responses can be made to the draft Terms of Reference by completing an online survey or making a submission at https://www.haveyoursay.nsw.gov.au/local-government-tor?fbclid=IwAR3vaNK2vrsD4-NNNecpX7lDVvU1bH7H3S-Dp9vbMhZuvYZBNjYSS3VzX_8