Byron Shire Council

Presentation to theIndependent Local Government Review

Panel13 August 2012

Amalgamations - Not the starting point

• Council does not support forced amalgamation of local governments.

• Change 1 - Council supports the removal of State and Federal financial and structural impediments to sustainable councils.

Reform before Amalgamations

• Amalgamations that occur without reform of financial and structural issues risks creating existing problems on a larger scale.

a) Rate Pegging and Coastal Councils

• Changes to or removal of rate pegging that acknowledges the particular challenges of coastal councils,

• Coastal distinguished from rural.• High growth, high visitor numbers, located in

major transport corridor.

Visitor Numbers 2000-2011

Visitor Numbers 2010-2011

• 797,000 Day Trippers• 484,000 Overnight Domestic• 150,940 International Domestic

• Total in 2011 – 1,431,490

Visitor Impacts

• Assessments indicate that the non- resident (visitor) impacts may be in the order of 28% against the Shire’s residential population. The assessment estimates the ratio of visitor numbers versus existing population statistics to determine the external impact on Council infrastructure.

b) Financial Assistance Grants

• Adjustment of the Federal Assistance Grants formula to ensure a fair and equitable distribution especially for coastal councils with high rates of tourist visitors.

Financial Assistance Grants 2001-2011

FAGS Summary

• $50 million less than LGA in Northern Rivers with the highest level of Financial Assistance Grants over ten years.

• $22 million (Byron) compared to $73 million (Richmond Valley).

• Lowest growth rate over ten years – 18% (Byron) compared to 53% (Tweed).

c) Alternative Revenues

• State and or Federal support for councils to access alternative revenues that facilitates the ability of tourist visitors to make a contribution to infrastructure support.

• Accommodation and/or visitor levy• Infrastructure grants• Events levy

d) Infrastructure Support

• State and or Federal capital funding for infrastructure development.

• E.g. public or tourist transport.

e) Expand Governance Options

• Greater flexibility be incorporated into a new Local Government Act to allow for differing models of local governance depending upon local and regional circumstances.

f) Cost Shifting

• Recognition of additional pressures on local government imposed by State government cost shifting and responsibility transfer.

Reform before Amalgamations

• Amalgamations that occur without reform of financial and structural issues risks creating existing problems on a larger scale.

Change 2

• Change 2 - The Local Government Act needs to be altered to allow for a different “model” of local government that may be advantageous in some regions. A regional model where administration, IT, plant and resources are controlled by one administration (ie with one General Manager) but with local representation.

Change 3

• Where a local government is burdened by a service shifted from a State Department, then annual reimbursement for the provision of that service by the local government should be provided by the State Government.

Change 4

• Regional local governments could be involved in land development, business unit opportunities to enable a local government to create profit for the community to support matters such as infrastructure renewal.

Change 5

• The recognition of Local Government in the Australian Constitution may allow alterative funding models that assist the long term financial sustainability of local government and the communities served. This is particularly the case in LGA’s where high levels of tourism place a burden on local infrastructure and where there are limited mechanisms for local government to raise the necessary funds for long term sustainability.