page 1 / 96
TABLE OF CONTENTS
About this site……………………………………………………………………………………………………………………………………….. 4
About good governance…………………………………………………………………………………………………………………………. 6
What is good governance?……………………………………………………………………………………………………………………… 7
Why is good governance important?………………………………………………………………………………………………………… 9
What is local government?…………………………………………………………………………………………………………………….. 11
Functions of local government……………………………………………………………………………………………………………….. 13
Governance & advocacy………………………………………………………………………………………………………………………. 14
What does ‘community’ mean?………………………………………………………………………………………………………………. 15
Roles & relationships……………………………………………………………………………………………………………………………. 16
Roles in local government…………………………………………………………………………………………………………………….. 17
Mayor…………………………………………………………………………………………………………………………………………………. 18
Council……………………………………………………………………………………………………………………………………………….. 20
Councillors………………………………………………………………………………………………………………………………………….. 22
CEO…………………………………………………………………………………………………………………………………………………… 24
Administration……………………………………………………………………………………………………………………………………… 25
Relationships in local government………………………………………………………………………………………………………….. 26
Mayor & councillors……………………………………………………………………………………………………………………………… 27
Mayor & CEO……………………………………………………………………………………………………………………………………… 29
Councillor & councillor………………………………………………………………………………………………………………………….. 30
Councillors & CEO……………………………………………………………………………………………………………………………….. 31
Council & administration……………………………………………………………………………………………………………………….. 32
Decision making………………………………………………………………………………………………………………………………….. 35
How decisions are made………………………………………………………………………………………………………………………. 36
Guiding principles………………………………………………………………………………………………………………………………… 37
Getting the balance right………………………………………………………………………………………………………………………. 38
Council powers……………………………………………………………………………………………………………………………………. 39
Natural justice……………………………………………………………………………………………………………………………………… 40
The decision-making process………………………………………………………………………………………………………………… 41
Setting the agenda………………………………………………………………………………………………………………………………. 42
Gathering information…………………………………………………………………………………………………………………………… 43
Forming an opinion………………………………………………………………………………………………………………………………. 47
Making the decision……………………………………………………………………………………………………………………………… 49
Implementing the decision…………………………………………………………………………………………………………………….. 52
Conduct……………………………………………………………………………………………………………………………………………… 53
What is good conduct?…………………………………………………………………………………………………………………………. 54
Conduct issues……………………………………………………………………………………………………………………………………. 55
Misuse of position………………………………………………………………………………………………………………………………… 56
Conflict of interest………………………………………………………………………………………………………………………………… 57
Accessing confidential information…………………………………………………………………………………………………………. 59
Improper direction & influence……………………………………………………………………………………………………………….. 60
Use of council resources & facilities……………………………………………………………………………………………………….. 61
Councillor liabilities………………………………………………………………………………………………………………………………. 62
Codes of conduct…………………………………………………………………………………………………………………………………. 63
For councillors…………………………………………………………………………………………………………………………………….. 64
For council officers………………………………………………………………………………………………………………………………. 65
Addressing breaches……………………………………………………………………………………………………………………………. 66
Financial governance…………………………………………………………………………………………………………………………… 68
Who is responsible?…………………………………………………………………………………………………………………………….. 69
Strategic Resource Plan……………………………………………………………………………………………………………………….. 71
Annual budget…………………………………………………………………………………………………………………………………….. 73
Financial reporting……………………………………………………………………………………………………………………………….. 74
Planning & governance………………………………………………………………………………………………………………………… 76
Why is good governance important for planning?…………………………………………………………………………………….. 77
Planning & councillor roles……………………………………………………………………………………………………………………. 78
Scenarios……………………………………………………………………………………………………………………………………………. 80
Dealing with disaffected councillors………………………………………………………………………………………………………… 81
page 2 / 96
Forcing council decisions……………………………………………………………………………………………………………………… 82
Lacking financial accountability……………………………………………………………………………………………………………… 83
Reacting to the loudest voices in the community……………………………………………………………………………………… 84
New councillor confusion over CEO loyalties…………………………………………………………………………………………… 85
Councillor & officer relationship breakdown…………………………………………………………………………………………….. 86
Split voting on key council decisions………………………………………………………………………………………………………. 87
Leaking information to media………………………………………………………………………………………………………………… 88
Community outrage at planning decision………………………………………………………………………………………………… 89
Influencing recommendations to council…………………………………………………………………………………………………. 90
Leading debate from the council chair…………………………………………………………………………………………………….. 91
Making decisions at council briefings……………………………………………………………………………………………………… 92
Glossary…………………………………………………………………………………………………………………………………………….. 93
page 3 / 96
ABOUT THIS SITE
The Good Governance Guide is a practical resource for anyone involved in the decision-making process in
Victoria’s local government sector.
Rather than try to cover every aspect of local government activity, it focuses on the areas where good governance
has the most impact and offers suggestions for how it can work.
ABOUT THE GOOD GOVERNANCE GUIDE
What’s in the Good Governance Guide?
information about good governance and why it’s important
information about the functions of local government
descriptions of the key roles and relationships which are so important to good governance
the main stages of the decision-making process from a best practice perspective
an outline of good conduct and areas where issues can occur
a look at how good governance works in speciality areas, such as land use planning and finance
scenarios where things have gone wrong and suggestions for how to tackle the situation.
The Good Governance Guide also has tips on every page and links to useful resources on other sites.
Who is the Good Governance Guide for?
current councillors and council officers
anyone thinking about being councillor or working for council
organisations supporting local government.
How can it help?
The Good Governance Guide is designed to be a helpful reference that will be used in a number of ways, such as:
new councillors who want to understand how the process for making decisions works
experienced councillors who are hoping to achieve more in this term by fostering good relationships within
council and the administration
council officers who want to have a better understanding of councillors’ roles and their need for support and
information
Chief Executive Officers who are planning to introduce governance training throughout the administration
mayors who want to run better council meetings
councillors who want information on conflict of interest, pre-apprehension (‘Winky Pop’), how to get more
value out of briefings, what their financial accountability is and more.
CREDITS
The Good Governance Guide has been produced by the Municipal Association of Victoria (MAV), Victorian Local
Governance Association (VLGA), Local Government Victoria (LGV) and Local Government Professionals (LGPro).
Each of these organisations nominated a representative to sit on the Good Governance Guide management
committee. The content was compiled and drafted by Ron Exiner, Director Governance VLGA acting as Project
Officer for this project.
The partners would like to thank John Rantino, Partner at Maddocks Lawyers for providing pro bono legal advice.
They also wish to acknowledge the project reference group which reviewed and provided valuable input to the
content and approach. Members of this group were councillors Barbara Murdoch (Indigo Shire Council), Micaela
Drieberg (Monash City Council) and John Doull (Greater Geelong City Council), Margaret Abbey CEO (Murrindindi
page 4 / 96
Shire Council), Lidia Harding Manager Governance (Moreland City Council), local government consultant Michael
Ulbrick and Greg Johnson (former mayor and councillor, Nillumbik Shire Council).
The committee would also like to thank Michael Ulbrick and local government consultant Mark Davies for their
specific input into the content on financial governance, and Bill Forrest, Director Advocacy (Wyndham Shire
Council) for his contribution to the material on planning and governance. Finally, they wish to acknowledge Philippa
Costigan for her work as content editor and Laura Cornhill and her colleagues at Studio Binocular for website
design and development.
page 5 / 96
ABOUT GOOD GOVERNANCE
Good governance is about the good processes for making and implementing decisions. Having good processes
generally leads to better outcomes for local governments and their communities.
This section of the Good Governance Guide website looks at what good governance means, why it’s important and
how it relates to local government.
page 6 / 96
WHAT IS GOOD GOVERNANCE?
Good governance is about the processes for making and implementing decisions. It’s not about making ‘correct’
decisions, but about the best possible process for making those decisions.
Good decision-making processes, and therefore good governance, share several characteristics. All have a
positive effect on various aspects of local government including consultation policies and practices, meeting
procedures, service quality protocols, councillor and officer conduct, role clarification and good working
relationships.
WHAT ARE THE MAIN CHARACTERISTICS OF GOOD GOVERNANCE?
Good governance is accountable
Accountability is a fundamental requirement of good governance. Local government has an obligation to report,
explain and be answerable for the consequences of decisions it has made on behalf of the community it
represents.
Good governance is transparent
People should be able to follow and understand the decision-making process. This means that they will be able to
clearly see how and why a decision was made – what information, advice and consultation council considered, and
which legislative requirements (when relevant) council followed.
Good governance follows the rule of law
This means that decisions are consistent with relevant legislation or common law and are within the powers of
council. In the case of Victorian local government, relevant legislation includes the Local Government Act 1989 and
other legislation such as the Public Health and Wellbeing Act 2008, and the Equal Opportunity Act 2010.
Good governance is responsive
Local government should always try to serve the needs of the entire community while balancing competing
interests in a timely, appropriate and responsive manner.
Good governance is equitable and inclusive
A community’s wellbeing results from all of its members feeling their interests have been considered by council in
the decision-making process. This means that all groups, particularly the most vulnerable, should have
opportunities to participate in the process.
Good governance is effective and efficient
Local government should implement decisions and follow processes that make the best use of the available
people, resources and time to ensure the best possible results for their community.
Good governance is participatory
Anyone affected by or interested in a decision should have the opportunity to participate in the process for making
that decision. This can happen in several ways – community members may be provided with information, asked for
their opinion, given the opportunity to make recommendations or, in some cases, be part of the actual
decision-making process.
It is important to remember that under the Local Government Act 1989 the council is required to either
page 7 / 96
make decisions or delegate the decision-making power to officers or Special Committees. For more information see
How decisions are made.
page 8 / 96
WHY IS GOOD GOVERNANCE IMPORTANT?
Good governance is important for several reasons. It not only gives the local community confidence in its council,
but improves the faith that elected members and officers have in their own local government and its
decision-making processes.
It also leads to better decisions, helps local government meet its legislative responsibilities and importantly provides
an ethical basis for governance.
BENEFITS OF GOOD GOVERNANCE
Promotes community confidence
People are more likely to have confidence in their local government if decisions are made in a transparent and
accountable way.
This helps people feel that local government will act in the community’s overall interest, regardless of differing
opinions.
It also encourages local governments to remember that they are acting on behalf of their community and helps
them to understand the importance of having open and ethical processes which adhere to the law and stand up to
scrutiny.
Encourages elected members and council officers to be confident
Elected members and council officers will feel better about their involvement in local government when good
governance is practised.
Councillors will be more confident that they are across the issues, that they can trust the advice they are given, that
their views will be respected even if everyone doesn’t agree with them, and that the council chamber is a safe
place for debate and decision making.
Officers will feel more confident in providing frank and fearless advice which is acknowledged and respected by
councillors.
Leads to better decisions
Decisions that are informed by good information and data, by stakeholder views, and by open and honest debate
will generally reflect the broad interests of the community.
This does not assume that everyone will think each decision is the right one. But members of the community are
more likely to accept the outcomes if the process has been good, even if they don’t agree with the decision. They
will also be less tempted to continue fighting or attempting to overturn the decision. So even the most difficult and
controversial decisions are more likely to stick.
Helps local government meet its legislative responsibilities
If decision-making is open and able to followed by observers, it is more likely that local governments will comply
with the relevant legal requirements. They will also be less likely to take shortcuts or bend the rules.
Supports ethical decision making
Good governance creates an environment where elected members and council officers ask themselves ‘what is
the right thing to do?’ when making decisions.
page 9 / 96
Making choices and having to account for them in an open and transparent way encourages honest consideration
of the choices facing those in the governance process. This is the case even when differing moral frameworks
between individuals means that the answer to ‘what is the right thing to do’ is not always the same.
page 10 / 96
WHAT IS LOCAL GOVERNMENT?
In Australia, there are three levels of government: local, state and federal. Local government is the first level and is
responsible for matters close to local communities.
Victorian local governments are established under the provisions of the Local Government Act 1989. Each local
government consists of the elected members (councillors) who form the council and council officers (the
administration) who are paid employees.
HOW DOES LOCAL GOVERNMENT OPERATE?
Council and the elected members
Councillors are democratically elected either on a single-councillor ward, multi-councillor ward or
whole-of-municipality basis. Their authority can only be exercised once they’ve taken the Oath (or affirmation) of
Office and when they meet as a council at a properly constituted meeting.
Outside the council meeting, individual councillors (including the mayor, other than at Melbourne and Greater
Geelong City councils) have very limited powers. Under Section 84 (1) of the Local Government Act mayors, or at
least three councillors, have the power to call a special council meeting. Councillors have the power under Section
81 B (b) and (c) to make an application to a Councillor Conduct Panel.
The council meeting is a formal process, defined by both the Local Government Act and by each local
government’s local law.
The CEO and the administration
The Chief Executive Officer (CEO) is directly accountable to council and also has specific authorities, including
managing the day-to-day operations and the organisational structure, under the Local Government Act.
The administration is formally accountable to the CEO. It provides advice, usually as written reports, to council to
assist decision making. It is also responsible for implementing council decisions and provision of services.
WHAT MAKES LOCAL GOVERNMENT UNIQUE?
At the state and federal levels of government, there are formal structures that govern the roles and relationships of
parliamentarians. There is a head of government and cabinet of ministers with executive powers, a formal
governing party and opposition, and a speaker in the legislature. These structures help to manage the
behaviour and processes at the state and federal levels. For example, the role of the speaker is seen as
independent from the government and the opposition, and has the authority and the power to enforce standards
of parliamentary behaviour.
By contrast, in local government the mayor is not only the leader of the councillors, but is also responsible for
managing both the council meeting and the conduct of councillors, as well as discharging their responsibilities as a
councillor. When there is a contentious issue that has divided council opinion, the mayor may be trying to achieve a
particular outcome while managing the meeting processes in a way that maximises the opportunity for everyone to
participate and be engaged. In these situations, the mayor may be seen to have conflicting objectives. And this has
the potential to undermine the mayor’s authority and expected impartiality.
Members of parliament at the state and federal levels also have a range of administrative supports and services
that are not available to councillors in local government who instead must rely on the goodwill of the council
administration. This can lead to misunderstandings between councillors and council officers about appropriate roles
and relationships and acceptable good conduct.
This lack of supporting structures and services places unique pressures on councillors and the administration and
page 11 / 96
has considerable implications for the practice of good governance in local government.
page 12 / 96
FUNCTIONS OF LOCAL GOVERNMENT
Under the Local Government Act 1989, the function of local government is very broad. Section 1 of the Act and
Section 3A of the Act state that local government’s purpose is ‘…the peace, order and good governance…’ of
their municipal district.
In practice, this means that individual councils can determine what they need to do to ensure “…the peace, order
and good governance…” of their municipalities. Essentially each council makes its own decisions based on its
collective beliefs, the advice it receives, various financial considerations, legislative powers and so on.
If a council restricts its activities to ‘roads, rates and rubbish’ and its various statutory obligations, it’s the result of
a series of political decisions rather than a legal determination which is based on the Act. And whatever decisions
a council makes in this regard are ultimately reflected in the Council Plan and other key strategic documents.
WHAT DOES LOCAL GOVERNMENT DO?
Councils achieve their goals and fulfil their functions in various ways:
Planning & monitoring
Local governments set the overall direction for their municipalities through long-term planning. Examples include
council plans, financial plans, municipal strategic statements and other strategic plans. Setting the vision, and then
ensuring that it is achieved, is one of the most important roles of local government.
Service delivery
Local government is responsible for managing and delivering a range of quality services to their communities, such
as public health and recreational facilities, local road maintenance, and public libraries.
Lawmaking & enforcement
Local governments legislate and make decisions in areas over which they have legislative authority. Local laws are
not allowed to replicate or be inconsistent with state and federal laws or the operative planning scheme.
The laws made by local governments are called local laws and cover issues such as the activities permitted on
public land, animal management, and use of infrastructure.
Local governments are also responsible for enforcing local laws and other legislation over which they have
authority.
Policy development
The activities of local governments are guided by policies. Developing and implementing these policies are key
functions.
Representation
Councils often represent their local community on matters of concern to those constituents.
Advocacy
Local governments have a role in advocating on behalf of their constituencies to state and federal levels of
government, statutory authorities and other sectors.
page 13 / 96
GOVERNANCE & ADVOCACY
Councils and councillors have an important role advocating on a broad range of issues on behalf of their
communities.
WHO IS OFFICIALLY RESPONSIBLE FOR ADVOCACY?
An important good governance issue relating to advocacy is that the responsibility and accountability for advocacy
needs to be clear.
In its formal decision-making role, council can officially advocate to external bodies or levels of government on
behalf of the community and municipality. Public statements are usually made by the mayor or the Chief Executive
Officer (CEO), although some councils have internal protocols which empower particular councillors to issue
statements on matters within their portfolios or allow individual councillors to advocate on issues which affect their
wards.
One of the roles of individual councillors as representatives is to advocate to council on behalf of their constituents.
This is legitimate, as long as it’s done within the framework of good governance in terms of language, using
appropriate forums and focussing on issues rather than personalities.
For more information about the differing roles of councils, councillors and the CEO see Roles and relationships.
page 14 / 96
WHAT DOES ‘COMMUNITY’ MEAN?
Community is a term frequently used in local government that means different things to different people.
Sometimes it will mean everyone who lives, works or is involved in some sort of activity in a municipality. In other
words, a homogenous entity which has single interest, need or demand. At other times, it will mean separate
smaller groups which have specific interests that may compete with others in the municipality.
WHAT DOES THE ACT SAY?
The Local Government Act 1989, section 1A (4), defines ‘local community’ as those who live in the municipal
district, people and bodies who are ratepayers (in the municipal district), and people and bodies who conduct
activities in the municipal district. This really means that the ‘local community’ is in fact a large number of
communities which includes:
Residents
includes both landowners and tenants
Ratepayers
includes owner-occupiers, investors and businesses – the latter two may or may not live in the municipal
district
People and bodies who conduct activities
includes people who come to the municipality for work, tourism, leisure or for other reasons.
All of these groups are made up of smaller groups. The business community for example includes large business
owners, small business people, farmers, manufacturers, retailers and those in the services industries. Often such
diverse groups do not share the same aspirations, goals or interests.
Community can also mean future generations as their interests should also be accommodated in decisions.
CHALLENGES FOR LOCAL GOVERNMENT
One of the challenges for all levels of government is how to ensure that different, and often competing, interests
are recognised, addressed and responded to. This is particularly relevant for local government which regards
itself as being closest to ‘the community’.
When a councillor says that ‘the community wants a particular outcome’, the implication is that the outcome is
universally supported and therefore should be implemented. In fact, it is likely that one or more of the many
sub-communities which make up a ‘local community’ support the outcome. This, of course, should be taken into
account in the decision-making process.
page 15 / 96
ROLES & RELATIONSHIPS
Creating successful working relationships and fostering a sophisticated understanding of role differences are critical
to good governance.
In this section, you’ll find out why roles and relationships are so important to good governance.
page 16 / 96
ROLES IN LOCAL GOVERNMENT
The mayor, council, councillors, Chief Executive Officer and administration all play an important role in the
successful operation of a local government. Having a good understanding of these roles contributes significantly to
good governance.
This section looks at the purpose of these roles in local government, how each relates to and interacts with other
roles and what the key responsibilities are.
page 17 / 96
ROLE OF THE MAYOR
The mayor is the leader of the council and has a number of roles which are both legislative and functional. The
legislative requirements are outlined in Section 73 of the Local Government Act 1989.
The Act states that the mayor not only takes precedence at all municipal proceedings within the municipality but
must also take the chair at all meetings of the council at which he or she is present.
The mayor’s role, however, extends well beyond officiating at council meetings or other municipal proceedings.
Additional important roles are providing leadership, promoting positive relationships, and modelling good
governance.
FUNCTIONAL POWERS OF THE MAYOR
Apart from the roles stated in the legislation, the mayor is usually the council spokesperson and has a significant
ceremonial role at particular events, including citizenship ceremonies.
The mayor is also an important community leader and is often the spokesperson for the community on economic
issues (such as commenting on the impact of jobs lost or gained in the municipality) or when the community is put
under stress (such as disaster management and socio-economic issues).
The mayor’s leadership role is different to that of a premier or prime minister. Because there is no formal
government or opposition within the council, the mayor is not the formal leader of a majority party within the
parliament. For more information about the structure of local government see What is local government?
While the mayor has been elected by at least a majority vote, the position becomes the leader of all the councillors
whether they supported an individual or not. What this means is that the mayor has responsibilities towards, and is
accountable to, all councillors. And the mayor’s leadership style should reflect this.
KEY GOVERNANCE ROLES
Chairing council meetings
The way in which the mayor chairs council meetings makes a significant contribution to good governance. A
well-run meeting that is inclusive and has high standards of governance relies on the mayor’s approach to being
chair. Mayors should have a good knowledge of meeting procedures and their council’s meetings local law.
Effective chairing also ensures that all councillors have the opportunity to be heard. While not every councillor can
get his or her way on an issue, they are more likely to accept a decision if they feel that they have been included in
the process. More often than not, this means that even controversial and difficult decisions are more ‘stickable’.
If the mayor takes sides in a council meeting and actively suppresses minority views, this will give dissenters the
ammunition not only to attack the outcome, but also the process. The mayor should ensure that all councillors
have had the opportunity to express their views, even if their proposals are defeated.
Group facilitation concepts such as participation, communication, involvement, consensus, mutual respect and
listening are all important in promoting the success of the councillor group.
Promoting good relationships
Good relationships are the glue for good governance. Councillors particularly rely on the cooperation and support
of colleagues and the administration to achieve their goals. This cooperation is based on good relationships, and
an understanding and acceptance of each role.
The mayor is in an ideal position to foster positive relationships between the various elements of local government
page 18 / 96
by setting a good example. This includes relationships between the mayor and councillors, council and the
administration, and the mayor and Chief Executive Officer.
Managing and modelling good conduct
The mayor also has considerable influence in establishing standards of good governance behaviour and ethics.
As the leader of council, the mayor has an important formal role to play in promoting good conduct and managing
poor conduct. In some Victorian local government councillor codes of conduct, the mayor is central to the dispute
resolution process. In those cases, the mayor must oversee the internal processes which deal with any alleged
misbehaviour, as well as be involved in recommending referrals to external bodies when necessary.
It is critical that the mayor’s role in these proceedings is characterised by fairness, an appreciation of natural
justice, and the awareness of being the leader of all councillors, not just those who are supporters.
All these roles require the mayor to have great skills and experience. As such, the mayor’s position should go
to the councillor best suited to the role. It should not be a reward for long service or the result of ‘deals’ between
councillors (for example, ‘I’ll support you this year, if you support me next year…’) or factional manoeuvring.
DEPUTY MAYOR
The Local Government Act does not deal with the election of a deputy mayor. Accordingly, councils may choose to
appoint a deputy mayor if they believe this will assist their governance. The Act does not prescribe a role or permit
a level of remuneration over and above that available to councillors.
For councils that have a deputy mayor, the position is in name only. Unlike the roles of deputy premier or prime
minister, a deputy mayor is not able to automatically step into the role of mayor if this becomes necessary. An
acting mayor must be appointed when the role is required and this does not have to be the deputy mayor.
There are arguments for and against having a deputy mayor and each council must make its own decision.
page 19 / 96
ROLE OF COUNCIL
The council consists of democratically elected members. Council’s role is to ensure ‘…the peace, order and good
governance…’ of its municipalities.
This broadly covers a range of legislative and functional activities including strategic planning,
advocacy, representation, policy development and law making. Good governance underpins all of these activities.
WHAT DOES THE ACT SAY?
Both the council functions (section 3E) and council powers (section 3F) are set out in the Local Government Act
1989. When undertaking the functions described in the Act, councils:
must make decisions on matters affecting their municipality and community
should delegate some decisions to committees or officers and monitor how these are exercised
should oversee the performance of the administration and the delivery of services and programs.
Councils also have responsibilities under other legislation such as the Planning and Environment Act 1987,
the Road Management Act 2004 and the Equal Opportunity Act 2010. These acts are listed on the useful links
page on this website.
Council decisions can only be made by a majority vote in the council meeting.
COUNCIL’S ROLE AND GOOD GOVERNANCE
The approach that council takes to fulfilling its role is important for good governance. Its focus should be high level
– strategic and policy oriented, rather than operational. For example, council should set the policies and priorities
for road maintenance rather than spend time on discussing what materials should be used on a specific road.
At any given time, councillors need to understand which function their council is performing. This will change
depending on whether council is setting the vision, developing policy, preparing the budget or managing the Chief
Executive Officer’s performance. See Role of councillors for more information.
Each of these functions requires different skills and different forms of leadership. Recognising and articulating this
can help council in various ways. It can ensure that council has the appropriate skills and support readily available.
It may help to increase the confidence of both the council and its administration, as well as reduce
misunderstandings.
ROLE OF COUNCIL AND THE ‘BIG’ STRATEGIC PLANS
Council’s main responsibilities are to set the overall directions and goals for the municipality and then monitor their
implementation and success. The tools for setting these directions and goals are the major strategic plans.
These include the council plan, the strategic resources plan, the municipal strategic statement and the municipal
public health plan. From a good governance perspective, the most important of these are the council plan and the
Strategic Resource Plan.
The council plan and the Strategic Resource Plan
The council plan and the Strategic Resource Plan are four-year plans which set the objectives and strategies of the
council and calculate how these may be resourced. Some councils also incorporate annual plans or action plans in
their council plan. These annual plans and the annual budget state what will be done during the year to
achieve the council plan, what the performance targets and measures will be, and how the activities are going to be
financed.
page 20 / 96
Good governance means that council must ‘own’ these plans by being involved in their development – from start
to finish – and be committed to the outcomes. Merely rubber-stamping a draft put in front of it by an administration
will not result in ownership. Plans that are ‘owned’ by council are more likely to be adhered to and will also better
accommodate issues and ideas that can arise from time to time during the year, and which warrant consideration.
Strategic planning challenges for council
Council planning is a particular challenge for democratic local government. Councils are a combination of
individuals who have been elected on the basis of promises they made to their constituents. Councillors will
therefore try to implement the promises which they believe have been mandated.
Finding a way to deal with perceived individual mandates, managing community input, responding to issues which
come up from time to time and ensuring continuity and stability is a peculiar challenge for successful council
planning. However, there is no magic formula for success other than following a process which ensures that
everyone has a chance to be heard.
Council planning and local government elections
While an election may result in the introduction of new councillors, the council as a legal entity will continue
unchanged.
The strategic plans, policies and budgets that were put in place by the previous councillors (as council) will
continue until they are amended by the new councillors (as council). Just because new councillors may have
different ideas from their predecessors doesn’t mean that the policies of the previous council and their associated
strategies will change. And the administration will also continue to implement them until they are amended by
council resolution.
Sometimes new councillors will mistakenly believe that because the administration does not immediately change
policies to respond to the ideas of the new councillors, it is not sympathetic to their policy ideas. Good induction
processes and advice from the administration can help to minimise any misunderstandings. Giving new councillors
the opportunity to discuss their policy ideas can also help address their concerns.
Good strategic planning processes contribute to good governance
Open and inclusive processes are critical for good governance. These will help to ensure that:
councillors understand what policies are ongoing and where flexibility exists
councillors’ issues are discussed and considered by council
appropriate exchanges between elected members and the administration increase knowledge
and understanding
community input is considered early in the process
councillors understand the what is possible from a financial perspective.
When good governance processes are followed, councillors, administrations and the community are more likely to
‘own’ council decisions.
page 21 / 96
ROLE OF COUNCILLORS
Councillors have a number of different roles that must incorporate the interests of the whole municipality and those
of their constituents. They play a vital leadership role in creating and implementing their community’s vision,
strategic direction and values.
WHAT DOES THE ACT SAY?
While the Local Government Act 1989 doesn’t specify roles for individual councillors, it does state that they must
adhere to particular standards of good conduct. It also states that their legal authority as councillors only exists
when they are participating, as a member of the council, in a formal council meeting. Significantly, outside of the
council meeting individual councillors have no such authority.
WHAT DOES A COUNCILLOR DO?
As part of the council, councillors guide the development of local policies, set service standards and priorities, and
monitor the performance of the organisation.
Councillors’ responsibilities include:
strategic planning for the whole municipality and a sustainable future
determining the financial strategy and allocating resources via the council budget
representing ratepayers and residents
advocating on a broad range of issues
liaising and coordinating with other levels of government, non-government, community groups and the private
sector
overseeing the management of community assets
facilitating community participation
managing the relationship with, and employment of, the chief executive officer.
COUNCILLOR ACCOUNTABILITY AND REPRESENTATION
Councillors are accountable to both the community and to their own constituents.
As members of council, where the focus is necessarily on governing in the best interests of the entire municipality,
councillors are accountable in multiple ways. These include acting in their roles as legislators, policy makers,
strategists and financial overseers (see financial governance).
Councillors also have to represent their constituents on a wide range of issues. In doing so, councillors must obey
the law, including the principle of natural justice. Councillors must also deal with a range of requests and
complaints from their constituents which they need to find ways to deal with, preferably in conjunction with the
administration.
Both these types of accountability and need to be accommodated.
OTHER CHALLENGES FOR COUNCILLORS
Another challenging aspect of a councillor’s role can occur when council is the Responsible Authority
under the Planning and Environment Act 1987. In this instance council, and therefore councillors, are in a
quasi-judicial role making planning permit decisions based on the interpretation of the relevant legislation. This not
only increases pressure on councillors but can also be difficult to navigate.
For example, if council has to decide on a particular statutory planning matter, a councillor may need to meet with
constituents who are concerned about the application (representative). They may also have to chair a consultation
page 22 / 96
meeting about the application (mediator) and then sit as a member of the Responsible Authority which will make
a decision according to the details of the application and whether it meets the requirements of the council’s
planning scheme (quasi-judicial/administrative).
Communities can place strong pressures on councillors to act in their representative roles – that is, to represent
their constituents’ views in the decision-making process. Mediation has its own set of pressures, requirements and
responsibilities, as does the administrative role as a member of the Responsible Authority. For more information
see Planning & councillor roles.
THE GOOD GOVERNANCE APPROACH
Accommodating all of these complex, and at times competing, roles is ongoing and constant. So it is important,
from a good governance perspective, that these pressures are recognised and managed.
It can be helpful for councillors to be aware of and very clear about the particular role they are undertaking at any
point in time – for the councillors, the administration and the community. For example, when dealing with a planning
decision councillors should overtly state when they are moving from a representative role (consulting over a
planning issue) to a quasi-judicial one (such as being part of a determination as the Responsible Authority).
This approach not only helps to foster productive relationships, but can also reduce misunderstandings and
frustration for everyone.
page 23 / 96
ROLE OF THE CHIEF EXECUTIVE OFFICER
The Chief Executive Officer has a significant role in promoting good democratic governance. This is mainly seen in
the way the Chief Executive Officer helps the council and councillors govern effectively.
THE CEO’S RESPONSIBILITIES
The Chief Executive Officer (CEO) has a number of responsibilities which are set out in Section 94 A of the Local
Government Act 1989. These include establishing and maintaining an appropriate organisational structure for the
council, ensuring that council decisions are implemented promptly, overseeing the daily management of council
operations following the council plan, developing a code of conduct for council staff and providing timely advice to
the council. The CEO is also the main person to which council delegates powers.
THE CEO AND GOOD GOVERNANCE
The CEO’s most important role is to promote a positive culture of good governance in the council
administration. When the CEO is committed to the principles of democratic governance, council officers are far
more likely to support good governance.
The CEO must help the administration understand the critical role of councillors and its council – councillors sit at
the top of the local government structure and council is the legitimate decision-maker. If the CEO reinforces this
idea, it will help council officers recognise that they are operating within the context of democratic governance.
Councillors should not be seen as simply an addition or, for that matter, an impediment to efficiency. Instead the
administration needs to acknowledge that councillors have been elected by the community to represent its vision
and goals.
How does the CEO promote good governance?
The CEO can support a culture of good democratic governance in various ways. These include:
regularly providing councillors with the information they need to fulfil their roles
ensuring that advice from the administration considers the political context which doesn’t mean playing
politics but recognises that advice can have political implications
ensuring that council officers and councillors understand the structure of local government and their roles in it
providing support to the mayor and councillors when dealing with councillor conduct issues
helping ensure that all councillors have equal access to information and resources
providing appropriate support for good decision-making processes
developing processes for the major strategic planning exercises which ensure councillors have plenty of
opportunities for input
Recognising that councillors have a ‘representation’ role and that they will be advocating for individuals or
communities at different times to ensure that the appropriate and legitimate support and structures are in
place (this does not mean assisting councillors in any way with electioneering).
page 24 / 96
ROLE OF THE COUNCIL ADMINISTRATION
The primary role of the administration is to support the council. This includes implementing council’s goals and
strategies, managing the delivery of municipal services, and providing advice and support. Unlike other areas of
local government, the role of the council administration is not set out in the Local Government Act 1989.
The administration can enhance good governance by recognising and supporting the governance role of the
council.
HOW DOES THE ADMINISTRATION SUPPORT COUNCILLORS?
Councillors rely on the administration (which is the equivalent of the state and federal public service) for support,
advice and assistance with the day-to-day activities of council. They also need help dealing with concerns raised by
constituents.
This is quite different to what happens at state and federal levels where support structures for parliamentarians and
the government are separated. On the one hand electoral officers and other staff deal with specific constituent
issues. On the other, the public service manages the activities of governments as a whole, regardless of political
affiliations. Find out more about local government structure.
By contrast, at the local government level, the main role of the administration is to support the council as a whole,
however there will be demands on council officers to provide councillors with support relating to their constituents.
For example, a resident may contact their councillor about problems with the road outside their property. The
councillor will then turn to the administration for help resolving this matter.
It is important for the administration to recognise that elected members are not only accountable to the municipality
as a whole, but also to their constituents. For this reason councillors often need the support to manage the various
community pressures which are a normal part of council life.
HOW DOES THE ADMINISTRATION SUPPORT GOOD GOVERNANCE?
Providing advice and support on consultation and engagement, establishing robust systems that refer complaints
and queries to the relevant area, and maintaining responsive services and processes all help to further good
governance.
It is also important that council officers are able to help individual councillors where appropriate, without becoming
involved in political activity or acting outside approved practices. Councillors for their part need to understand that
the administration is fundamentally the public service of local government and is not there to promote the
re-election prospects of individual councillors.
Some council officers also have statutory obligations that don’t fall under the Local Government Act. Legislation
such as the Public Health and Wellbeing Act 2008 and the Building Act 1993 mean that certain activities carried out
by the administration may not be directly accountable to council and are therefore not necessarily subject to
overall council direction.
page 25 / 96
RELATIONSHIPS IN LOCAL GOVERNMENT
Relationships are key to good governance in local government. This is due to the lack of governance structures
found at the state and federal levels such as the existence of a formal governing party, an opposition, a cabinet of
ministers and a speaker to manage the legislature.
Good relationships, which are based on understanding and agreements around roles, help the different elements of
a local government to work together effectively.
This section features the most important local government relationships which help to promote good governance
practices.
page 26 / 96
MAYOR & COUNCILLOR RELATIONSHIP
The relationship between the mayor and councillors is very important because good leadership and good
relationships contribute to effective participation of councillors and good governance.
As the leader of the council and of all councillors, the mayor’s role is particularly important in facilitating
good relationships.
HOW DOES THE MAYOR FACILITATE GOOD RELATIONSHIPS?
The mayor requires great skill and expertise to encourage all the councillors to work together in the interests of the
municipality as a whole, to provide guidance and support to individual councillors, and to assist in resolving
disputes.
Leading the councillors
The mayor is the leader of all councillors, regardless of whether they supported the mayoralty candidate or not. The
mayor must encourage all the councillors to work together as a cohesive governing body.
Councillors must, in turn, show respect for the mayor despite differences of opinion or political allegiances. The
mayor’s success in leading council depends greatly on being empowered by the councillor group as the position of
mayor has no statutory authority over the rest of the councillors (except in limited matters in the cities of Melbourne
and Greater Geelong).
Helping the councillor group work together
The mayor plays a crucial role encouraging councillors to express their opinions both within and outside the council
chamber. If councillors feel that their points of view are being heard, acknowledged and respected, they are more
inclined to accept decisions that they don’t agree with. They will also remain active and involved members of the
group.
In this role, the mayor can manage potential conflict and differing opinions in a constructive way. Because
councillors reflect the complex and diverse opinions of the community, it’s important that this be managed in a way
which benefits the broader interests of the municipality.
Helping individual councillors
The mayor may also be a first point of contact for councillors who have particular goals they want to achieve on
behalf of their constituents. This is particularly true for new councillors. One aspect of developing council and
annual plans involves the need to bring together many diverse and sometimes conflicting goals.
The mayor can considerably assist this process by providing advice and support to individual councillors, and by
facilitating communication and negotiations between councillors themselves and councillors and the administration.
This ultimately helps councillors to represent the interests of their constituents and do their best to deliver on their
election promises.
Helping resolve disputes
The mayor is often the first point of contact when a dispute between councillors occurs. In some Victorian councillor
codes of conduct, the mayor is responsible for overseeing dispute resolution procedures. These procedures, and
their implementation, should be characterised by fairness, natural justice and lack of bias.
The mayor can also help to determine whether an issue should be viewed as a dispute (that is, a
personal difference between councillors) or an allegation of a breach of the council’s code of conduct. The former
requires a mediation process. The latter may require an investigation of the alleged breach before looking at how
page 27 / 96
the breach may be remedied. Helping to distinguish between the two types of dispute can clarify what should be
done. For more information see Codes of conduct.
page 28 / 96
MAYOR & CHIEF EXECUTIVE OFFICER RELATIONSHIP
When the mayor and Chief Executive Officer have a good working relationship, it helps to promote good
understanding and communication between the elected members and the administration. And this, in turn,
promotes good governance.
Good relationships help the administration and councillors to anticipate, identify and resolve issues, contribute to
good planning and create a positive organisational culture.
THE IMPORTANCE OF BUILDING TRUST
Trust is fundamental to the relationship between the mayor and Chief Executive Officer (CEO). It is not necessarily
automatic and must be built using communication, understanding of each other’s roles and open sharing of
information.
Establishing good communication
Both the mayor and CEO should ideally share information that helps each other to do their jobs. Through
discussion, they should gain a clear understanding about which kind of information is important, as well as what
each needs to know from the other.
Setting up regular meetings, in addition to those which occur around specific issues or when problems arise, will
enhance planning and communication. Following the ‘no surprises’ principle is also a good idea. Because
the mayor and CEO are in a position to brief each other, neither should be surprised by information or issues that
are raised in other forums.
Clarifying each other’s roles
Both the mayor and CEO need to understand and respect the other’s role. The mayor may spend a
considerable length of time in the council offices each week so it’s important for both to have a clear
understanding of their different roles. And this should be an ongoing discussion.
The power differential between each role needs to be acknowledged. While the mayor has status and is the leader
of the council and councillors, the position has no direct authority outside the council chamber. The CEO, on the
other hand, has direct authority under Section 94 (A) of the Local Government Act 1989. It can be frustrating for the
mayor and councillors that they can’t just ‘fix’ some problems that come to their attention, while the CEO has this
capacity.
A good relationship between the two roles will recognise that the mayor’s position is one of ‘first among equals’ –
that is, the mayor is one of the democratically elected councillors who has slightly more responsibility or power
during their term, but once the term is over will become one of those equals again. While building the relationship
with the new mayor, the CEO is in a position to support the former mayor in their transition back to the role
of councillor.
Keeping an outward focus
The mayor and CEO should ensure that their relationship is outwardly, rather than inwardly, focussed. Together
they can promote good communication and information sharing, not only between each other, but also to and
between the council and the administration. The focus should be to keep councillors and the administration in the
loop rather than hanging on to information and using it to strengthen their own positions.
page 29 / 96
COUNCILLOR & COUNCILLOR RELATIONSHIP
Relationships between councillors are ideally characterised by mutual respect and an acknowledgement that they
are all doing complex and important work.
Because of the nature of a councillor’s role, they all have individual agendas and issues on which they would like
to pursue during their term. Despite their differences of opinion, councillors need to work together as members of
the council to achieve the best outcomes for the municipality.
Good governance and the capacity for councillors to get things done depend on the quality of the relationships
between them.
THE COUNCIL STRUCTURE REQUIRES GOOD RELATIONSHIPS
All councillors have their individual agendas and issues on which they wish to make an impact. They cannot rely on
an institutionalised majority (that is the government) to get their issues up. So they need to be able to
persuade sufficient numbers of their colleagues to support them and this depends significantly on having good
ongoing relationships with each other.
The structure of council – consisting of a relatively small group of independently elected councillors –
is an environment in which good relationships, mutual respect and a constructive appreciation of differences are
required for good decision making and the capacity of councillors to deliver on their various election platforms.
MANAGING CONFLICT WELL
Given the way local government operates, it is inevitable that there will sometimes be conflict. However, from a
good governance perspective, it’s the way that conflict is addressed that’s significant. The role of the
mayor is particularly important during these times, as is the ability for councillors to appreciate the dynamics that
are at play. Good, robust debate is part of local government, but the focus should always be on the issues, not
the personalities.
When it comes to behaviour in the council chamber, councillors should model good constructive relationships and
show personal respect for one another at all times. Understanding the key elements of good conduct and having
solid processes in place to manage behaviour is also important for good governance.
page 30 / 96
COUNCILLORS & CHIEF EXECUTIVE OFFICER RELATIONSHIP
The relationship between the Chief Executive Officer and councillors includes formal roles and day-to-day working
interactions. Both are important to good governance.
THE EMPLOYER-EMPLOYEE RELATIONSHIP
On the one hand, the Chief Executive Officer (CEO) is formally accountable to the council as its employee.
Councillors, sitting as council, are therefore responsible for both employing the CEO and managing performance.
On the other hand, the CEO is a source of valuable support and assistance to councillors, particularly when there
are issues in their wards.
While the formal relationship is very important, it is equally important for councillors and the CEO to create positive
working relationships. They are generally in regular contact to share information, discuss issues and manage
problems. As with the relationship between the mayor and CEO, there needs to be trust between both. And this
trust should be based on good communication and an understanding of each others’ roles and functions.
MANAGING THE RELATIONSHIP
Employment
The council is responsible for employing and formally managing the performance of the CEO. As such, the CEO is
formally accountable to council and therefore to the councillors.
During their terms, it is very likely that councils will either have to appoint a CEO or make a decision about
renewing the CEO’s contract. And all councils will have to manage their CEO’s performance. This gives
councillors considerable power and can put substantial pressure on those who haven’t necessarily had experience
managing complex and high-level employment relationships.
Successful employment relationships are based on good recruitment processes, shared expectations and good
performance management processes. If these have been well articulated and managed, the decision to renew a
contract should be straightforward.
All relationships and particularly those between the CEO and councillors will be tested when a new council is
elected and has to work with a CEO appointed by a previous council. There is sometimes a temptation for a council
to want to appoint its own CEO. It shouldn’t matter, however, which council made the appointment. Good
communication and performance management will ensure the CEO has a clear idea of councillors’ expectations
and how they can and should be met. And that then is the CEO’s responsibility.
Performance management
The CEO is the only officer directly accountable to council and it is the only position that is appointed by councillors.
As such, councillors are accountable for setting the CEO’s performance plan and monitoring performance. Most
commonly this focuses on the CEO’s annual performance assessment.
In the past, problems have occurred when expectations have not been clearly articulated at the beginning of a
CEO’s term. When this happens councillors may then feel that the CEO has not delivered what was expected and
this can in turn lead to problems in the relationship.
As much time should be put into setting goals and expectations of the CEO as is usually put into the annual review
of performance. If expectations are communicated and agreed, they’re more likely to be met.
Ongoing communication and feedback between the CEO and the council will help to ensure these problems don’t
occur.
page 31 / 96
COUNCIL & ADMINISTRATION RELATIONSHIP
This is one of the most complex relationships in local government, and is critical to achieving good governance.
A number of factors will contribute to a good relationship between the council and the administration. These include
goodwill, understanding of roles, communication, protocols and a good understanding of legislative requirements.
FACTORS CONTRIBUTING TO A GOOD RELATIONSHIP
Commitment and goodwill leads to better relationships
Both the administration and the council need to believe that it’s only possible to become a high-achieving
municipality with a ‘good council’ and a ‘good administration’.
Because the relationship between council and the administration is complex and fragile, it requires commitment
from both sides to make it work. It also requires the tenacity and will to work through the more complex and difficult
issues, as well as the many smaller or even trivial matters which can and do arise.
Understanding roles is critical for good governance
The elected body and the administration must have a clear and sophisticated understanding of their different roles,
and the fact that these operate within a hierarchy.
The administration is accountable to the CEO, who in turn, is accountable to the council. While the functions of the
administration, which should be based on mutual respect and cooperation, complement the work of the council, it is
not a partnership of equals.
A good understanding of the different roles in local government will contribute to good governance. The council’s
role is firstly to develop the vision and then come up with the strategies and policies to achieve it.
The administration’s role is to advise the council, implement council decisions and to oversee service delivery.
It helps if the administration recognises the complex political environments in which elected members operate and
acknowledge that the whole system is based on democratic governance. Councillors similarly need to understand
that it is a highly complex task to prepare information and provide quality advice on a very wide range of issues.
Understanding roles helps local government function better
It is the natural inclination for both the council and the administration to fill any gaps which the other side leaves in
the performance of its functions. This can lead to role confusion and stress. For example, if councillors don’t
believe the administration has a good system in place for recording and addressing residents’ complaints, they will
raise residents’ complaints at council meetings rather than focussing on more strategic matters. If the
administration believes there is an inadequate policy framework to deal with an issue, it will try to create one by
delivering services and addressing issues in a particular way. Neither approach is ideal. It is far more desirable for
each to perform their functions properly in the first place.
While the elected body and the administration have different roles, this doesn’t mean that they don’t have a
legitimate interest in each other’s role. The elected body will be interested in the organisational structure and how
effectively it can implement the council’s policies. While the Local Government Act 1989 clearly states that the
organisational structure is the CEO’s responsibility, if the CEO does not properly consult the elected
body before implementing or changing a structure, the council is likely to find some way of expressing its opinions.
And most of these will not promote good governance.
Similarly, if the administration is not properly involved in policy or strategy development (for example, if proposed
new policies are tabled without notice by council at council meetings), the administration will look for ways to have
an impact. Apart from the new policies not having the benefit of professional input from the administration, there is
page 32 / 96
likely to be confusion and delays in implementing the policy.
Open communication will enhance good governance
Finding ways to ensure that both the administration and the council are able to legitimately discuss issues, and
seek information from each other is important for good governance.
There needs to be ongoing discussion between both areas about the functions of local government and how it
works. This is particularly important for the administration’s senior management.
When the administration and councillors develop a shared understanding of how their roles work both in local
government as a whole and in the individual municipality, this will also enhance good governance.
Being clear about non-statutory roles
Some councils give individual councillors specific responsibilities for projects, portfolios or issues. This can help to
facilitate good communication, positive relationships and understanding between the elected members and the
administration. However, if these arrangements are in place, they do not in any way lessen the accountability of
councillors to inform themselves about the issues on which they are making decisions. For example, having
a portfolio councillor for finance does not lessen the accountability of councillors to satisfy themselves that the
financial reports are in order before voting to accept them.
These non-statutory roles can contribute to planning and advisory processes, but they also don’t replace the
formal advice processes, nor in any way impact on the decision-making authority of council. In local
government individual councillors don’t have executive authority. The council is also unable to delegate any
decision-making powers to individual councillors.
Roles such as these should be based on discussion and consultation between the elected members and the
administration and should also be documented in the form of protocols or position descriptions.
Managing contact between councillors and council officers
Many councils debate whether individual councillors and staff should have direct contact or whether all contact
should be through the CEO and directors. Any decision should take the following into account.
Councillors need to understand that:
Accountable advice needs to go through an organisational process which usually involves approval by a
director or the CEO. Speaking directly to lower-level staff may result in councillors not being fully informed or
receiving advice that hasn’t been formally endorsed by the administration.
Staff are not accountable to them individually, and that it is illegal in most situations for a councillor to try and
direct council staff.
They are classified as employers under the Occupational Health and Safety Act 2004 and, as such, can be
liable for staff Workcover claims.
Council officers need to understand that:
They are not accountable to individual councillors and are not required to take direction from them. They are
accountable to the whole council, through the management structure.
They should not provide advice to councillors unless it has been approved by the senior management or CEO.
Some councils can be successful in channelling all communications between council and the administration
through the CEO or directors. However this can be impractical and can lead to resentment and misunderstandings.
Councillors also generally don’t like to be told that they can’t talk to staff.
An alternative approach is to develop appropriate protocols to guide interactions and communication can help both
sides understand how they can assist each other and where there may be potential problems. Providing training
and support for staff how to manage direct communication with councillors is a more positive approach than simply
telling councillors that they aren’t allowed to talk to certain people.
page 33 / 96
page 34 / 96
DECISION MAKING
Decision making is an important part of local government. Most decisions are made by councillors at formal council
meetings, although certain decisions can be delegated to other areas.
Councillors are elected to make decisions on behalf of their communities. As such, they have a responsibility to
represent the interests of their constituents, as well as those of the entire community.
This section covers the general principles underpinning good decision-making, looks in more detail at the local
government decision-making process and briefly discusses some of the tools available to help councillors make
decisions.
page 35 / 96
HOW DECISIONS ARE MADE
Council decisions are made in several ways, but the central decision-making process happens in council meetings.
With council approval, certain decisions can also be made under delegation by council officers or by special
committees.
The Local Government Act 1989 states that a council decision may only be made at a properly constituted council
meeting or under council delegation. Neither the mayor nor individual councillors have the legal authority to act or
make decisions on behalf of the council.
DECISIONS AT COUNCIL MEETINGS
Council decisions are made by the votes of the majority of councillors present at a meeting. Most of the
requirements for council meetings are set out in the Act or in local laws.
Meetings are open to the public unless they are held in camera for specific reasons which are outlined in Section
89 (2) of the Act.
DECISIONS BY DELEGATION
As it is impractical for every issue to go to a full council meeting, councils delegate many matters to special
committees and council officers. This allows a council to use its formal meetings to deal with the most important
and strategic decisions.
The council cannot direct its delegate to make a decision in a particular way. However, if the council considers that
a delegated decision requires higher-level consideration it can ‘call-in’ the decision. When this happens, the
council makes the decision instead of the delegate. Councils usually have formal procedures for this.
Special committees
Special committees can include any combination of councillors, council staff and other people. Some committees
with significant responsibilities are comprised partly or entirely of councillors (for example, planning committees).
Other committees, which are comprised largely of community members, have lower-level responsibilities such as
the management of community halls.
The decision-making powers of a special committee are established under Section 86 of the Local Government
Act. The committee must also operate under other provisions of the Act, including conflict of interest.
Council officers
Councils delegate many lower-level and operational decisions to council officers. This is mostly done by delegating
powers to the Chief Executive officer who then passes the delegation on to the appropriate officer. These
delegations are usually subject to the policies and procedures adopted by the council.
page 36 / 96
PRINCIPLES GUIDING DECISION MAKING
As part of the decision-making process, elected representatives need to consider the interests of their constituents,
as well as those of the entire community. At the same time, they also need to ensure that decisions are made in an
equitable, impartial and legal way.
This section looks at three important principles which underpin local government decision making.
page 37 / 96
GETTING THE BALANCE RIGHT
Accommodating the interests of constituent groups with those of the whole community is an important and
challenging issue for local government generally, and for councillors specifically.
One of the complexities of the role of councillors is to legitimately represent the interests of the people who elected
them as well as operate in the interests of the whole community.
Good governance processes allow councillors to put forward their constituents’ issues for formal consideration by
council. They also ensure that councillors represent the interests of the whole municipality.
BALANCING COMMUNITY AND MUNICIPAL INTERESTS
Under Section 76B (b) of the Local Government Act 1989, a councillor is required to ‘…impartially exercise his
or her responsibilities in the interests of the local community’. While this may be self-evident, in practice it’s far
more complex.
The capacity of individual councillors to get particular local issues considered seriously by council is sometimes
regarded by constituents as a measure of how effective that councillor is. Council processes should ideally include
opportunities for elected members to raise issues. And this should be supported by the mayor.
Councillors should treat the interests of groups in the community, and the people who advocate those views, with
respect. As democratically elected members, councillors must represent their constituents’ views regardless of
their personal opinions or whether they’re likely to attract votes. This can sometimes mean that a councillor will
convey the views of a group of constituents to the council, even when he or she does not support those views.
ROLE OF THE STRATEGIC PLANNING PROCESS
The strategic planning process is intended to bring together council and community interests in a coherent plan for
the whole municipality. Ensuring that all councillors have had the opportunity to be involved in the process and
voice their views will result in a stronger council plan. The plan will also then be more useful as a tool for setting
priorities. For more information about the strategic planning process see Role of council.
Even if councillors are successful in representing their community’s issues in the planning process, they won’t
always be supported by council. When this happens, councillors may have to explain to their constituency that
while they supported a particular issue, the council, as the decision-making body, supported another.
Good planning and governance allows for the inevitable diversity of opinion in the municipality. Good governance
provides opportunities for councillors to represent the interests of their constituents.
FINANCIAL IMPLICATIONS OF DECISION MAKING
An important factor in decision making is that decisions have to be affordable and financially realistic. Council
plans, strategic resource plans and annual budgets are the key tools which determine whether the proposal is both
priority and is affordable. See Financial Governance for more information.
page 38 / 96
COUNCIL POWERS
Council can only make decisions that are within its powers. These are set out in Section 3F (1) of the Local
Government Act 1989, as well as in other state and federal legislation.
Under the Act, councils have broad powers to achieve the objectives of local government and perform their
functions. This is subject, of course, to any limitations or restrictions imposed by the Local Government Act, or any
other relevant act.
SCOPE OF COUNCIL POWERS
Councils can do whatever is reasonably necessary to fulfil the terms of the Act. As long as they don’t stray into
areas that are the responsibility of other levels of government, they can undertake a wide range of functions for
their local community.
For example, while local government has the power to tax its constituents (such as the capacity to raise rates), it
cannot levy an income tax (which is a federal power) or another land tax (which is a state power). Councils also are
not allowed to take over state powers such as policing, road rules or public transport regulation.
Local government legislation (local laws) is subordinate to state and federal legislation. Any laws made by councils
must not replicate, or be inconsistent with, state and federal legislation. See Functions of local government for
more information.
When carrying out their functions, councils must also comply with administrative law principles which affect a
person’s rights or legitimate expectations.
page 39 / 96
NATURAL JUSTICE
The principle of natural justice, which is fundamental to good governance, should underpin every council decision.
Natural justice is a doctrine which seeks to protect those affected against arbitrary exercise of power by ensuring
fair play. It’s particularly relevant to decisions which clearly affect individuals’ rights, for example planning permit
applications.
THE RULES OF NATURAL JUSTICE
There are two fundamental rules for natural justice:
all sides of an argument should be given a fair opportunity to be heard before a decision is made
the decision maker must not have predetermined the matter or be perceived as having predetermined the
matter.
IMPLICATIONS FOR LOCAL GOVERNMENT
The principles of natural justice have implications for all councillors. Regardless of their political views, councillors
must ensure that they consider all the available arguments and information before finally making up their minds on
an issue.
Councillors must be able to demonstrate that they are ‘capable of being persuaded’ by the advice they receive.
This doesn’t mean, however, that they must follow the advice. Instead they must, at the very least, be able to
demonstrate that they have considered it.
Councillors must also adhere to conflict of interest requirements as set out in the Local Government Act 1989. This
is a legal requirement.
Local Government Victoria’s publication, Ensuring Unbiased Democratic Council Decision Making is a useful
guide.
WHEN IS A PERSONAL OPINION OKAY?
Natural justice shouldn’t prevent councillors from having opinions on upcoming matters and stating their views
during election campaigns. Having a view on something doesn’t mean that a councillor is incapable of delivering
on natural justice doctrines. They just need to ensure that they will impartially consider the evidence and advice,
which may or may not support their view, during the formal decision-making process.
When councillors give the impression that they will never change their views on an issue regardless of the evidence
or advice, they are at severe risk of breaching the natural justice doctrine. In such cases, the council decision is
then at risk of being set aside by a court or tribunal.
page 40 / 96
THE DECISION-MAKING PROCESS
When decision-making processes are not working well, complaints about lack of information, inadequate
consultation or rowdy behaviour usually occurs. When this happens, it’s worth looking at the whole process to see
where problems are and how they can be addressed.
This section looks at each stage of the decision-making process, identifies potential issues and makes suggestions
about good governance processes.
page 41 / 96
STAGE 1: SETTING THE AGENDA
In the first stage of the decision-making process council must determine which issues will be considered during the
year or term. While some issues will be considered for statutory reasons, many others end up on the
agenda because they are either council policies and priorities or issues that individual councillors have put forward
for discussion.
GETTING ISSUES ON THE AGENDA
Using the strategic planning processes
The processes for developing the council plan, annual plan and the annual budget are how councils anticipate the
future, set directions and priorities, and determine what will and won’t be done.
These processes are one of the main ways that councillors address community needs and their constituents’
concerns. This can require significant negotiation and compromise as councillors strive to get decisions
implemented on the issues they are most concerned about.
It’s important for councils to have good processes for these major strategic exercises. These processes should
allow for early input from councillors and provide the time and space for the necessary discussions and
negotiations to take place.
Using other processes
From time to time, issues do arise outside of the strategic planning processes. While in some cases, it’s quite
reasonable to defer these to the following year, there does need to be a way for councillors to get their issues
considered outside of the planning timeframe. The mayor and the CEO can play an important role in this regard by
providing leadership and advice to councillors. Setting up regular meetings with councillors can be one way to
manage this.
Frustration at not being able to get their issues considered can be a key reason for councillor’s difficult behaviour
or misuse of meeting procedures. Councillors, for example, should not use council meeting agenda items, such as
urgent business or notices of motion, to prove to their constituents that they are addressing issues.
page 42 / 96
STAGE 2: GATHERING INFORMATION
The second stage of the decision-making process involves compiling and preparing information for the councillors.
This information will help councillors make an informed decision about each of the issues that have been put
forward for consideration.
IMPORTANCE OF THE COUNCIL REPORT
The council report is the way of providing councillors with advice and information. These are prepared by the
council administration and should contain relevant data, issues and options which help councillors to consider the
matter at hand and make a decision. The report should be well written, clear and concise.
The advice contained in the reports needs to be well researched and accurate. It should provide factual information
and include policy, financial and other implications, as well as state which consultative processes have occurred or
are planned for the future.
The advice shouldn’t be biased or deliberately oriented to the political views of the council officers who are writing
the report or the councillors who are reading it. It should nonetheless be mindful of the political environment in
which the council is operating and recognise that many council decisions have political implications. See Council &
administration relationship for more information on the impact of politics on decision making.
Reports are usually produced by the Chief Executive Officer (CEO), department directors or third-level managers,
however the CEO is formally accountable for all advice which goes to council from the administration.
Complex issues often impact on the responsibilities of more than one local government department. When this
happens the advice should reflect this. Sometimes the entire senior management team will review significant
reports before they are handed to the council.
STRUCTURE OF THE COUNCIL REPORT
While individual local governments should structure their reports to best serve their specific needs, it is useful to
include the following elements:
Author
The CEO is ultimately accountable for all reports. When another author is listed, a formal endorsement should be
incorporated that acknowledges this accountability.
Purpose
The report will ideally include a statement answering the following questions: What is the purpose of the report?
Why is it being put to council?
Policy implications
This section needs to show whether the issues covered and directions proposed are consistent with council policy,
as seen in the council plan and individual policies.
Background
This provides information about the background or context of the report and explains why it is being put forward.
Issues
page 43 / 96
This is where the main content sits and includes the relevant facts and arguments.
page 44 / 96
Financial and resources implications
Councillors need to be aware of the resource implications of any proposal, including the money, people and
equipment that may be needed. The report also needs to outline whether the proposal should be incorporated in
the budget.
If not, the report will need to state how the proposal will be financed and whether there are staffing implications. If
this proposal is successful, the report will need to consider whether there are any current activities or programs that
will be affected.
Sometimes environmental and social implications are also covered in this section.
Internal/external consultation
Decision making should be based on appropriate consultation. This section should outline what consultation which
has been undertaken, both outside and inside the council. Consultation within the council should show that all
relevant parts of the administration have had the opportunity to provide input into the report.
Options
This section outlines the relevant options and their implications.
Conclusion
This should logically draw conclusions from the arguments which will lead to the proposed recommendations.
Recommendations
The recommendations should clearly and concisely state what council is being asked to decide.
Recommendations should be able to be read by councillors, without having to refer to the body of the report.
The first and preferred example below explains why council have not adopted a program, whereas the second asks
the reader to read another part of the report:
‘Council adopt the proposed weed clearing program as it is financially viable and environmentally sound.’
‘Council adopt the proposed weed clearing program for the reasons outlined in Section 4 of this report.’
Recommendations usually form the basis of council meeting minutes. The minutes are the main way that the public
is informed about the decision. Minutes that are clear and easy to understand contribute to higher levels of
accountability and transparency.
COUNCIL REPORTS AND GOOD GOVERNANCE
The administration should ensure that the report contains professional and ‘frank and fearless’ advice. The report
should not reflect the personal views of those providing or receiving advice, nor try to manipulate councillors’
opinions in a particular direction. It should genuinely and impartially evaluate the effectiveness of the proposed
recommendations.
Councillors must also not try to influence recommendations in order to further their own aims. Their challenge is to
persuade a sufficient number of their fellow councillors to support their ideas, rather than trying to influence council
officers to make favourable recommendations. If councillors try to unduly influence council officers they could be in
breach of the improper influence clauses of the Local Government Act.
CONSULTATION WITH STAKEHOLDERS
Finding out what stakeholders think about a particular issue is an important part of the decision-making process.
Understanding the views of stakeholders helps to inform council’s decision. This is important for good decision
page 45 / 96
making for the following reasons:
when council knows what stakeholders are thinking about an issue, it is better able to consider the
consequences and implications of a decision
if stakeholders feel that their opinions have been heard as part of the process, they’re more likely to accept a
decision, even when they don’t agree with it
if good processes are followed, unpopular decisions are less vulnerable to ongoing challenges and possible
reversal on the grounds of poor process.
Consultation does not detract from the decision-making powers of councillors or their accountability for those
decisions, nor does it mean that councils are bound to follow the majority position on an issue. It is also not another
name for government by referendum.
ADVISORY COMMITTEES
Another way in which councils can get the information they need is via advisory committees or working groups.
Unlike special committees, an advisory committee doesn’t have any formal delegated powers to act on the
council’s behalf. Advisory committee recommendations or decisions have no legal standing unless they are
adopted by the council at a formal council meeting. A council is also not bound to accept the recommendation of an
advisory committee.
An advisory committee will often operate under a terms of reference document which sets out the committee’s
purpose and how it will function. As with special committees, the council retains control over the membership and
purpose of the committee.
Advisory committees can help to spread a council’s workload. It also gives council the opportunity to recruit
particular expertise as well as access community resources and opinions to help guide the decisions.
Short-term advisory committees (which are sometimes called working groups or ad hoc groups) may be created for
one particular purpose and will be disbanded when that purpose is achieved.
page 46 / 96
STAGE 3: FORMING AN OPINION
The third stage of the decision-making process gives councillors the opportunity to form their opinions on the
proposals before them. This stage allows them to debate the issues effectively in the council meeting as part of the
decision-making process. A key part of this stage is the council briefing.
WHAT ARE COUNCIL BRIEFINGS?
Briefings are information sessions involving councillors and senior officers in the administration. These sessions
ensure that councillors are well informed and in the best possible position to debate the issues effectively once
they’re at a council meeting. Briefings can happen at various stages in the process leading up to the council
meeting.
Briefings help councillors determine whether they have enough information and advice to help them form an
opinion about the matters in question. These meetings are generally held in private so that councillors are able to
openly question council officers about the information they have been given, seek further information and float
ideas. For example, they may want to know more about the consultation process to ensure that it adequately
represents stakeholder views.
Briefings should not feature debates and councillors taking a collective position on issues. The appropriate place
for this to occur is in the council meeting. In briefing sessions there is generally a one-way information flow from the
administration to councilors who will ask questions and identify information shortfalls. Some councils have their
Chief Executive Officers chairing briefings so that every councillor has the opportunity to identify and meet their
information requirements.
Although briefings are not decision-making forums, councillors must still comply with the Local
Government Act’s conflict of interest requirements as part of the briefing process. This is because briefings are
considered ‘assemblies of councillors’ under the Act.
Well-managed councillor briefing sessions usually make the decision-making stage more efficient. If the briefing
works well, councillors are less likely at the council meeting to have reason to complain that they haven’t received
sufficient information or the consultation process has been inadequate.
GETTING INFORMATION OUTSIDE OF THE BRIEFING MEETINGS
While councillors will get most of the information they require via formal advice and briefings, there will be times
when they may require more information from the administration (usually from the Chief Executive Officer or
directors).
When this happens it’s important that councillors ask for information in a suitable way. It’s equally important that
council officers are appropriately responsive as councillors largely rely on the administration for information and
other kinds of support.
Requests must be legitimate
Councillors should ensure that any requests for information or reports are legitimate, lawful, related to their role and
directed to the appropriate officer (depending on the protocols of the individual council).
Requests which fall under the category of file trawling or ‘fishing’ expeditions are neither appropriate nor generally
legal. The administration as a whole, and council officers specifically, should be wary of providing fuel for
internecine political disputes between councillors. If a councillor is requesting information about
another councillor’s activities, the administration should find ways to deal with the situation without exacerbating it.
Information requests and good governance
page 47 / 96
If the administration view most requests as legitimate, then one way of managing councillor requests is to assess
them according to the following criteria:
how much work will be involved in meeting the request?
what kind of information is required?
If a legitimate request can be easily met without much extra resourcing it should be. On the other hand, if it is
resource intensive, it should become the subject of a council report.
This can become a governance problem when a ‘minority’ councillor makes continual requests for
information claiming that it is essential for his or her role. This is often seen as troublemaking and is overruled by
the majority of councillors which can also have a negative impact on relationships.
In these situations, the mayor’s role in communicating with the councillor is very important, as is having a
good relationship between the council and the administration.
The council and the administration can develop protocols to ensure that everyone understands when and what kind
of information will be provided to individual councillors. Some councils also use self-regulation such as a register
that logs all the information requests by individual councillors.
Finally, in the interests of transparency, any information that is made available to one councillor should be available
to all councillors.
page 48 / 96
STAGE 4: MAKING THE DECISION
The fourth stage of the process is when councillors finally make the decision. This happens at formal council
meetings as defined by the Local Government Act 1989.
OPEN AND CLOSED COUNCIL MEETINGS
Council meetings are open to the public. There are, however, certain circumstances which are described in Section
89 (2) of the Act, when a council meeting may be closed. This should be avoided when possible to preserve
transparency and accountability – the key aspects of good governance.
Meetings should be conducted in a way that clearly reinforces the reason why they are open to the public. That is,
council meetings allow the public to be informed and, where appropriate, involved in the government of their
community.
GOOD GOVERNANCE AND COUNCIL MEETING PROCEDURES
Councils are required to have a local law which covers meeting procedures. These laws are generally based on
well-accepted procedures that are intended to ensure meetings are run fairly and productively. All councillors
should be familiar with their council’s local law.
While these local laws provide a broad framework for running orderly and constructive meetings, good governance
processes add meaning to the framework. They ensure meetings are run in such as way that helps good
decision-making.
A well-run meeting should have a clear and informative agenda, be well chaired and facilitated, follow meeting
procedures appropriately, and adhere to statutory requirements.
Exhibiting good conduct in council meetings
The meetings local law is intended to help the mayor chair and manage the meeting. However it is the
responsibility of individual councillors to exhibit good conduct in meetings. The mayor should not have to spend
time enforcing good behaviour.
Councillors should listen while others are speaking, avoid interrupting, use reasonable and temperate language in
debates (no matter how contentious the topic may be), and refrain from texting or tweeting during meetings.
When councillors behave in this way, it helps to maintain public respect for the council in particular, and local
government in general. See the Conduct section for more information.
Leading meetings with skill and impartiality
The mayor can facilitate good decision-making through skilful chairing of the council meeting. The role of the
mayor is particularly important in making councillors feel that they are part of the process by ensuring they have the
opportunity to get their viewpoint across.
Mayors should be very familiar with the council meetings local law so that they are confident in chairing meetings
and making rulings where necessary.
Having a strong position on a specific issue while chairing the debate on that issue can represent slightly conflicting
roles. However, as long as the mayor ensures that all councillors have the opportunity to express their views and
manages other aspects of the meeting fairly, this does not have to be a problem.
In these circumstances, the mayor should ideally not be an active participant in the debate, but should instead
page 49 / 96
focus on managing the issue through to a decision. If the mayor feels the need to express a particular view, this
can happen after all the other councillors have had their chance to state their opinion, and before the matter is put
to the vote. If the mayor wishes to play an active part in the debate, then he or she should consider vacating the
chair for that item.
Focussing debate on the issues
Robust debates about complex issues are a feature of a healthy democracy. However, it is important for good
governance and for the reputation of local government that debates focus on the content of issues, not on the
councillors debating them (or the officers providing advice on them). ‘Playing the ball, not the person’ is a very
important part of good governance in council meetings.
Every council has codes of conduct which require councillors to treat each other with respect. They shouldn’t
simply do this because they have to, but because that’s how they’d like to be treated themselves. Good behaviour
especially during debates makes for better governance and a better all-round experience of being involved in local
government.
Treating advice with respect
Apart from the information and advice received in council briefings councillors are also provided with advice at
meetings via council reports or presentations from officers who attend the meeting. Councillors are not required to
follow the advice, but nevertheless should consider it with due respect.
It’s good practice, particularly for complex issues, if officers introduce their reports themselves. This enables a
body of information including the relevant facts, options and advice to be articulated at the meeting, prior to the
debate commencing. This provides a good platform for the debate which necessarily involves opinions,
interpretations, statements of values, and so on.
Taking voting seriously
Councillors are elected for the primary purpose of making decisions on behalf of the community. It’s therefore
important that councillors take this role seriously, actively participating in all aspects of the meeting. This means:
attending formal council meetings and other related meetings, such as councillor briefings
participating in debate and discussion of matters affecting the community
voting on all matters, except where there is a conflict of interest.
From a good governance perspective even complex and difficult issues should be worked through until councillors
are able to make a decision.
Committing to transparency
Council meetings should be characterised by transparency. This means that observers can follow and understand
the decision-making process and the reasons why a particular decision has been made. This not only helps support
accountability, but also keeps legislators and administrators honest. Transparent processes are usually good
processes because they stand up to scrutiny. See Why is good governance important? for more information.
Holding the meeting in public is one way that transparency can be achieved. Having a proper debate is another. By
observing a debate, onlookers are able to see how and why council came to make a decision.
This does not mean that all decisions will be made in public. Some decisions need to be made in camera (that is,
closed to the public) for legal or commercial-in-confidence reasons, or because a privacy or council staff matter is
being considered.
Using notices of motion appropriately
From time to time, councillors use notices of motion to raise issues in a public forum (the council meeting).
When councillors want to formally let their colleagues know that they intend to move a particular matter at an
page 50 / 96
upcoming meeting, they will do this via a notice of motion (however titled). Councils will have a procedure
incorporated into their meetings local law for this to occur.
This can be a useful way for a councillor to raise an issue, which doesn’t require advice or a lot of consideration on
a council agenda. For example, it might involve asking the council to recognise a significant achievement of a local
community member which is already generally well-known.
The downside of using notices of motion for significant issues is that it doesn’t generally allow the second
(gathering information) and third stages (forming an opinion) of the decision-making process to work effectively. If a
notice of motion is seeking a decision, this doesn’t allow adequate time for advice to be provided or for councillors
to consider and determine what extra information they may need. If a councillor uses a notice of motion for a
significant item, it‘s best that the motion request a report for a subsequent meeting.
Understanding the nature of urgent business
Like notices of motion, councillors sometimes use urgent business as a way to get things onto the agenda. Urgent
business has a particular purpose on council meeting agendas. It is there for issues that have arisen since the
agenda was published, urgently require council’s attention, but can’t be safely held over until the next meeting.
This decision is usually made by the Chief Executive Officer (CEO) in consultation with the mayor.
Urgent business should only ever be used for this purpose. It is the urgency of the matter, as determined by the
CEO and mayor, that justifies the sidestepping of normal decision-making processes.
page 51 / 96
STAGE 5: IMPLEMENTING THE DECISION
The final stage of the decision-making process is what occurs after the actual decision is made. There are two key
elements to this stage. The first is working out how the administration will provide reports to council on
the implementation of the decision. The second is telling constituents about the decision.
KEY ELEMENTS
Progress reports for council
One aspect of the Chief Executive Officer’s role is to ensure that council decisions are implemented in an effective
and timely fashion.
Part of this phase is to establish a process for regularly reporting to council on how the implementation is
progressing. This not only allows the administration to demonstrate its accountability to the council, but also
provides the council with the information it needs to meet its accountability to its community.
Talking publicly about council decisions
A unique feature of local government is that all decisions are taken in the name of the whole council. Councillors
are bound by the council decision, regardless of whether they were in favour of it or not. This is how councillors’
accountability to the council works.
The councillors’ role means that they are also accountable to their constituents who may have voted for them on
the basis of a pledge to achieve a particular outcome. When a council decision contradicts a promise made by a
councillor during an election, they need to be able to indicate to their constituents that they did not agree with the
decision.
If this needs to be done, it should be done in such a way that it doesn’t undermine the council decision. The
councillor should focus on the content of the decision rather than resorting to inflammatory statements which can
be both destructive and undermining. For example, stating that ‘the council has done X, even though I support Y’
is preferable to saying ‘the council has done X because they don’t care about the community’.
page 52 / 96
CONDUCT
Good conduct is essential to good governance. So understanding how to promote good behaviour and good
conduct in local government is important for councillors and council officers.
This sections focuses on the key elements of good conduct, issues relating to conflict of interest and misuse of
position, the different codes of conduct and how councils manage misconduct.
page 53 / 96
WHAT IS GOOD CONDUCT?
Good conduct in local government means that councillors should act with integrity and impartiality. They should be
honest and diligent, avoid conflicts of interest, treat people with respect, act lawfully and show leadership.
Good conduct or behaviour is an important part of a civil society. It is also the basis for good relationships which
are, in turn, crucial for good governance.
PRINCIPLES OF GOOD CONDUCT
The principles for good conduct are set out in the section 76 B and section 76 BA of the Local Government Act
1989. The Act also defines several other requirements for the conduct of councillors and council officers.
Some forms of conduct are considered to be criminal and can result in prosecution.
IMPORTANCE OF GOOD CONDUCT
Good conduct and good relationships are particularly significant in local government because it relies on councillors
working together as the government to make decisions in the name of the council (regardless of
whether individuals agree with a decision or not).
Good relationships are characterised by mutual respect and courtesy which is especially important when there are
differences of opinion. Equally important is the need for councillors to listen to each other, and focus debate and
discussion on the issues rather than on personalities.
Good reasons for good conduct
There are three main reasons why councillors should follow the principles of good conduct:
Councillors’ behaviour reflects on the council and on local government as a whole. If councils are seen to be
acting fairly and ethically their decisions will better respected and are much more likely to be accepted by the
community.
The conduct of individual councillors affects the ability of the council to function properly. If councillors behave
badly, it can negatively affect the quality of their relationships with each other. This can lead to a lack of trust
which will undermine the effectiveness of the council as a whole.
As community leaders, councillors should recognise their position as role models. Just like leaders at the state
and federal levels of government and other prominent citizens, councillors’ conduct sets the standard for
other people to follow.
GOOD CONDUCT, GOODWILL AND GOOD GOVERNANCE
An important foundation of good governance in local government is goodwill.
While there are various mechanisms to guide and manage councillor behaviour (such as codes of conduct, conduct
panels and the Victorian Civil Administration Tribunal), good governance depends on the capacity and
preparedness of councillors to behave well and do whatever is necessary to build and maintain good working
relationships, the administration supporting this, and councillors committing to repairing working relationships when
things come unstuck as they may do from time to time.
page 54 / 96
COUNCILLOR CONDUCT ISSUES
Good governance depends in part on councillors and council officers having a good understanding of what they
can and can’t do under the Local Government Act 1989.
This section looks at some of the areas where poor conduct may occur, including misuse of position and power,
using information and resources inappropriately, and conflict of interest.
page 55 / 96
MISUSE OF POSITION
Councillors are elected to represent their communities. They must not use their positions to gain or attempt to gain
an advantage for themselves, or anyone else. Similarly, they must not disadvantage or seek to disadvantage
council or anyone else.
WHAT IS MISUSE OF POSITION?
A number of behaviours are outlined in the Act that can give rise to misuse of position. These can include
improperly using information, misusing public funds or seeking to improperly influence a member of council staff.
Councillors need to be aware of these from both a legal perspective and because they impact on good governance.
They can also impact on relationships within the local government and relationships between the local government
and its communities and stakeholders.
PENALTIES FOR MISUSE OF POSITION
There are serious penalties for councillors who misuse their position. These are outlined in Section 76D of
the Local Government Act 1989 which include substantial fines and up to five years imprisonment. A person
convicted of misusing their position is also disqualified from being a councillor.
page 56 / 96
CONFLICT OF INTEREST
Conflict of interest is about being transparent. Understanding what this means in the context of local government is
essential to good governance.
Sections 77A to 81 of the Local Government Act 1989 define the specific circumstances that lead to a conflict of
interest and describe what councillors and council officers must do if they believe there is a conflict. This includes
direct and indirect interests, disclosure requirements, exemptions, provision of advice and registers of interest.
CONFLICT OF INTEREST AND LOCAL GOVERNMENT
Councillors and council officers should always be aware of the potential for conflict of interest.
In their roles as elected members and employees, they have been entrusted to govern on behalf of
their communities. As such, they must ensure that they do not gain personal benefit from their positions in local
government.
If they have personal interests in any of the decisions that they are part of as a government, public body or private
enterprise, they must declare their interests and withdraw from the decision-making process. It is therefore
very important for councillors and officers to understand and adhere to the legislative requirements.
Conflict of interest requirements apply to council meetings, special committee meetings, audit committees, and
Section 223 Committees and Assemblies of Councillors.
Local Government Victoria has three useful guides on conflict of interest for councillors, council staff and council
committees.
GOOD GOVERNANCE AND CONFLICT OF INTEREST
The following points are important for good governance.
Individuals must make their own decisions
Councillors and council staff must individually take responsibility for assessing whether they have conflicts of
interest in any matter relating to their formal council roles. If the answer is yes, then they must act appropriately.
This includes making a proper disclosure and not participating in the relevant decision.
Seeking advice is appropriate
Councillors and council staff should seek assistance or advice from other people when they think they may have a
conflict of interest. These can include the mayor, fellow councillors, the Chief Executive Officer or other qualified
officers. In some circumstances councillors may also need to obtain their own independent legal advice.
Individuals are accountable
Councillor or officers must ultimately assess whether they have a conflict of interest. Each councillor or officer is
accountable for that assessment and the obligation to make the relevant declaration. This is regardless of any
assistance or advice they may have received.
Conflict of interest is not a political weapon
Councillors should not use conflict of Interest as a weapon against each other. No councillor can determine that
another councillor has a conflict of interest. That is for the individual alone (and a court if that councillor is charged
with an alleged breach of the legislation). Using conflict of interest as a political weapon diminishes its importance
page 57 / 96
as a principle of good conduct and natural justice.
CONFLICT OF INTEREST AND COMMUNITY REPRESENTATION
Sometimes councillors will be in a position where they are required to declare a conflict of interest even though
their constituents expect them to participate in a decision. For example, a councillor may have a conflict of
interest in a local planning decision which the community feels strongly about.
Because conflict of interest can impact on governance and perceptions of governance, it’s important that:
councillors ensure they thoroughly analyse the situation (and seek appropriate advice) to determine what is
required by the legislation
councillors clearly explain the situation to their constituents
the council and administration provide support to councillors, when required, to explain conflict of interest
requirements to constituents.
Councillors should not, however, hide behind conflict of interest as a way of avoiding a vote on difficult issues in
which they don’t have a conflict.
page 58 / 96
ACCESSING CONFIDENTIAL INFORMATION
Accessing and using information appropriately is an important aspect of good conduct in local government.
Section 77 of the Local Government Act 1989 states that councillors must not disclose confidential information. The
legislation outlines how information becomes confidential, and what limits and time periods can be applied.
KEEPING SOME INFORMATION CONFIDENTIAL
Councillors need to have good information do their jobs properly. So it’s important that councils have robust
processes and systems in place for providing councillors with information – whether as formal advice, in briefings or
through individual requests. This is particularly important when it comes to confidential information.
Local government needs to be able to keep certain information confidential, especially when it relates to important
commercial issues or the privacy of individuals. While it’s usually obvious which information should be made
confidential, there can sometimes be genuine disagreement or political debate around the exact meaning of certain
information.
Sometimes council may need to discuss particular issues or information in a meeting that is closed to the
public. Section 89 of the Act lists the types of information that the council may need to deal with in closed meetings.
For more detail about the different ways that councillors can access information see Forming an opinion.
CONFIDENTIALITY AND GOOD GOVERNANCE
Local government can ensure that confidential information is identified and treated appropriately in the following
ways:
Information should only be classified as confidential if it’s strictly necessary according to the Act. Just
because information may be embarrassing or awkward for the council is not a reason for declaring it
confidential. It’s much easier to enforce the provisions if they cover only what is really required.
Protocols which not only state how information can be used and accessed should be created. These protocols
should clearly emphasise that leaking is not appropriate under any circumstances.
LEAKING INFORMATION
Leaking confidential information is both illegal and damaging to the council. It not only affects the ability of council
to perform its functions, but undermines the trust that external organisations and individuals may have in council
to keep certain information confidential.
A councillor who discloses confidential information may be brought before a Councillor Conduct Panel or the
Victorian Civil Administration Tribunal for a misconduct or serious misconduct hearing. See Addressing breaches of
conduct for more information.
page 59 / 96
IMPROPER DIRECTION & INFLUENCE
Improper direction and influence essentially means that councillors are not allowed to tell members of the
administration what to do or try and influence them in any way outside of their role as decision makers in council
meetings.
This is outlined in Section 76E of the Local Government Act 1989 which clearly states that a councillor must not
attempt to direct or influence a council officer while performing their duties as an elected member of local
government.
DEFINING DIRECTION AND INFLUENCE
The legislation is quite clear that councillors, either as individuals or as a group, do not have the power to direct
(improperly or otherwise) council officers.
It is sometimes less clear what improper influence means. This is because there can be a fine line between robust
discussions and improper influence. As a general rule, any attempt by a councillor to influence the way a member
of staff performs an important function, other than through formal council processes, is probably improper influence.
Attempts to improperly influence officers also suggest a lack of understanding of roles and responsibilities within a
local government.
Councillors should understand that their challenge is to persuade sufficient numbers of their fellow councillors to
support them in achieving a particular outcome rather than try to influence members of the administration (which is
in breach of the Act).
PROTOCOLS CAN HELP
Councils should have protocols which help councillors and council staff understand who they can
communicate with and what sort of communication is appropriate.
Each council will make its own decisions about the protocols around staff and councillor communication. Some
require councillors to communicate only with the Chief Executive Officer and directors. Others allow for
communication across multiple levels of the administration. This is often the case in smaller rural councils where
there is likely to be more day-to-day contact between councillors and staff, in and outside of the local government.
PENALTIES FOR IMPROPER DIRECTION AND INFLUENCE
A councillor who improperly directs a member of staff may have to face misconduct or serious misconduct charges
at a Councillor Conduct Panel or the Victorian Civil Administration Tribunal.
page 60 / 96
USE OF COUNCIL RESOURCES & FACILITIES
As part of their role as elected members, councillors are supplied with items such as stationery, mobile phones and
computers so that they are able to do their jobs.
This is covered in Section 75C of the Local Government Act 1989 which states that local governments supply
councillors with the resources and facilities necessary for them to undertake their duties.
USING RESOURCES FOR NON-COUNCIL BUSINESS
Each council will specify and pay for the resources and facilities that councillors need to do their jobs. Councils
should not pay for non-council business use. It’s therefore important that councils have systems in place which
allow councillors to track and pay for any private use of council-supplied equipment.
Councillors must not use other council resources or facilities for personal benefit either. This includes using council
equipment and facilities for electoral purposes or enlisting staff to help with private business.
Using council resources for personal benefit may be subject to prosecution if it constitutes a misuse of position.
page 61 / 96
COUNCILLOR LIABILITY FOR ACTIONS AND STATEMENTS
Councillors, unlike state and federal members of parliament, do not have parliamentary privilege. A councillor can
be subject to civil action by a person who considers that the councillor has defamed them or has acted in a way
that improperly harms them, whether this occurs in the council chamber or not.
COUNCILLOR INDEMNITY
Section 76 of the Local Government Act 1989 requires that each council indemnify its councillors against actions
and claims made while conducting their duties in good faith. This is not the same as parliamentary privilege
and cannot be relied upon as a general protection.
CIVIL ACTION AND COUNCILLOR LIABILITY
Councillors should be very careful, especially in the heat of a council debate, not to make defamatory statements
which could give rise to a civil action.
If a councillor is subject to a civil action, he or she will have to deal with the matter as an individual even if the
council is paying the legal costs. In some cases the council, or its insurers, may refuse to provide indemnity for the
councillor’s actions or statement. This is because the councillor’s action or statement was either not considered to
have occurred in the course of performing a council duty or to be done in good faith.
page 62 / 96
CODES OF CONDUCT
Codes of conduct for both councillors and staff are required under the Local Government Act 1989. They help
councils identify and agree on the desired standard of behavior. They also clearly state the consequences of any
breaches of the code. Having good codes of conduct that are understood and supported by councillors and council
staff is important for good governance.
This section briefly looks at councillor and staff codes of conduct, their impact on good governance and how
alleged breaches are dealt with.
page 63 / 96
CODES OF CONDUCT: FOR COUNCILLORS
The councillor code of conduct sets out the principles underpinning good behaviour and good relationships. All
Victorian councils are required to adopt a councillor code of conduct, which includes prescribed principles of
councillor conduct, under Section 76C of the Local Government Act 1989.
WHY IS A COUNCILLOR CODE OF CONDUCT IMPORTANT?
The code of conduct is an opportunity for local government to articulate what it means by good conduct and good
governance. It also creates the standards to which councillors must adhere. Alleged breaches of the code of
conduct can result in councillors having to appear before a Councillor Conduct Panel or the Victorian Civil
Administration Tribunal. See Addressing breaches for more information about conduct panels.
A good process for preparing the code of conduct allows councillors to think about what they mean by terms such
as ‘courtesy’ and ‘respect’. Councillors can then agree on a common understanding of such terms.
It can be surprising how different interpretations can be. For some, ‘respect’ can mean uncompromising honesty.
For others such uncompromising honesty can mean rudeness and a lack of respect.
Each council needs to develop a code that matches its specific circumstances. Some councils prefer to create
relatively simple codes of conduct, while others choose to use the process to elaborate on their ideas around good
governance. Some councils also include detailed procedures in their codes of conduct for dealing with internal
disputes between councillors.
page 64 / 96
CODES OF CONDUCT: FOR COUNCIL OFFICERS
The council’s Chief Executive officer is required to develop and implement a code of conduct for council officers.
This is specified in Section 95AA of the Local Government Act 1989.
WHY IS A CODE OF CONDUCT IMPORTANT FOR OFFICERS?
Codes of conduct help councils and the administration think about their culture and articulate the desired standards
of good behaviour. Preparing a code of conduct is an opportunity for Chief Executive Officers (CEO) and council
staff to think about what conduct issues are important for them. Good processes for preparation and review help
raise awareness and ownership of the code.
Codes of conduct also clearly state the consequences of any breaches of conduct. Council staff who do not
comply with the code of conduct may be subject to disciplinary action or even dismissal.
Local Government Victoria has published a framework for the development and review of council staff codes of
conduct which is available from their website. This framework is designed to help CEOs and other council officers
develop and implement codes of conduct.
page 65 / 96
ADDRESSING BREACHES OF CONDUCT
While most councillors behave appropriately and in accordance with their council’s codes of conduct, some do
not. Sections 81A to 81S of the Local Government Act 1989 describes misconduct, serious misconduct and
gross misconduct. The Act also sets out processes for dealing with each level of misconduct and outlines the
appropriate sanctions.
LEVELS OF MISCONDUCT
Misconduct
Misconduct primarily refers to breaches of a councillor code of conduct. Many councils will initially deal with
instances of misconduct internally, using their dispute resolution procedures. However, sometimes a council (or
individual councillors) may refer a breach to a Councillor Conduct Panel (CCP).
If a panel finds the councillor did engage in misconduct, it may apply a range of sanctions. These can include a
reprimand, a public apology or a request that a councillor take leave of absence for up to two months. A panel may
also direct a councillor to undertake training or counselling.
Serious misconduct
Serious misconduct refers to behaviour that is more disruptive to good governance at a local level. It includes
repeated misconduct or conduct that breaches specified laws relating to the proper functioning of a council. It also
includes failure to comply with a direction of a Councillor Conduct Panel following a finding of misconduct.
Serious misconduct complaints are dealt with by Victorian Civil Administrative Tribunal (VCAT). The Tribunal may
suspend a councillor for up to six months or may rule that a councillor cannot hold certain positions, including that
of mayor, for up to four years.
Gross misconduct
This is the most serious category. If a councillor is found guilty of gross misconduct it reflects very badly on their
character and suitability to hold the office.
Gross misconduct includes breaches of the councillor conduct principles and certain sections of the Local
Government Act. It also shows that a councillor is not of good character and is not a fit and proper person to hold
the office of councillor.
The only person who can make an application to VCAT for a gross misconduct hearing is the Secretary for the
Department of Planning and Community Development (or his or her delegate). If VCAT finds that the allegation has
been proven, it may order a councillor to be disqualified from holding office for up to four years, suspended for up
to six months or ineligible to hold the office of mayor for up to four years.
PROSECUTION
Where a councillor breaches a section of the Local Government Act, or any other Act for which an offence
is prescribed, the councillor may be charged with a criminal offence and prosecuted in court.
If a person is convicted of certain specified offences under the Local Government Act or a criminal offence with a
maximum penalty of at least five years imprisonment, he or she will be disqualified from being a councillor for
seven years following the conviction. If that person is a councillor at the time, he or she will cease that role
immediately.
COUNCILLOR CONDUCT PANELS
page 66 / 96
A Councillor Conduct Panel can address many issues. These generally relate to allegations of breaches of a
council’s code of conduct and disputes between councillors. A council or individual councillors can refer issues to a
CCP.
Many councils have dispute resolution procedures within their code of conduct. These usually involve various levels
of mediation which should always be the first step, when possible, to deal with disputes.
This frequently requires the mayor or the Chief Executive Officer (CEO) to act with impartiality and use processes
which are underpinned by natural justice. If a process is not seen to be fair, it will not be seen to produce fair
outcomes.
WHEN IS A DISPUTE ACTUALLY A BREACH?
It’s not always easy to determine the difference between a dispute and what may actually be a breach of a code
of conduct.
A dispute can be mediated while an allegation of a code of conduct breach requires some level of investigation
to determine if a breach actually occurred. Mediation and investigation processes can be quite different. It’s not
always easy to work out, for instance, if an alleged failure to treat a fellow councillor with respect is a breach of a
code of conduct or a dispute involving rudeness and bad manners. Getting as much clarity as possible in the code
of conduct and any actions arising from it will help.
WHAT DOES THIS MEAN FOR GOOD GOVERNANCE?
Dealing with misconduct creates problems for councillors and CEOs who have to manage disputes and breaches
while also promoting goodwill and good conduct, both of which are so necessary for good governance.
The negative impacts on good governance can be minimised when:
councillors adhere to their codes of conduct because this makes governance work better and councils a
better place to work
disputes are handled internally as much as possible and with the good processes and goodwill which
are necessary for good governance
referrals to CCPs are not used as a political weapon – they are not intended for this purpose and it’s difficult
to maintain good governance in a council while CCP processes are underway, especially if these have
been politically motivated.
page 67 / 96
FINANCIAL GOVERNANCE
Financial governance is important for good governance because the consequences of failure can be so devastating
for a council. No matter how good the rest of a council’s governance may be financial failure can bring it undone.
This section focuses on financial governance mainly from the councillor’s perspective and highlights how the
council can meet its accountability requirements. The areas covered include where the responsibility and
accountability lie for council finances, the role of the Strategic Resource Plan and annual budget, and the
importance of rigorous financial reporting.
page 68 / 96
WHO IS RESPONSIBLE FOR FINANCE?
The council is ultimately accountable for the financial management of the local government. While it should not
have a hands-on role in financial management, the council needs to have sufficient information to satisfy itself that
the finances are in order and that budgetary and financial planning goals are being met. The difference between
the role of the council and the administration is important in this area.
ROLE OF COUNCIL
Councillors, sitting as council, have an overall accountability for the council’s finances.
Under Section 126 of the Local Government Act 1989, the council is required to prepare and periodically review its
longer term financial plan, the Strategic Resource Plan (SRP).
Section 127 of the Act also specifies that council should prepare and adopt the annual budget.
The council must insist on regular financial reporting by the administration and ask questions that will provide it with
the information it requires to meet its financial accountability responsibilities. The council should not, however,
micro-manage the finances.
At the very minimum, a council must receive quarterly financial reports comparing actual and budget revenues and
expenses as specified in Section 138 of the Act. More regular financial reports allow any necessary corrective
action to be undertaken on a timely basis.
Six months into the financial year, the council should ensure that a rigorous review of the current financial position
is carried out. The review should include a reforecasting of the budget based on the known performance over the
first six months of the financial year. The report should cover both general operations and capital expenditure on
major works and projects.
ROLE OF THE CEO AND CFO
A key accountability of the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) is
financial management. While council has the overall accountability, the administration and its key players have
critical responsibilities for financial planning and management, and for providing regular reports to council.
ROLE OF AUDIT COMMITTEE
Section 139 of the Local Government Act 1989 states that councils are also required to appoint an
audit committee. These committees play a very important role in ensuring that an appropriate governance regime is
nurtured and maintained.
Typical duties undertaken by an audit committee will help council to:
properly discharge its financial management and reporting responsibilities
develop and maintain adequate risk assessment procedures and management of those risks
comply with applicable laws and regulations
manage the various internal and external audit processes
provide general advice on specific matters which may be referred to them by council
advise council that the annual financial and performance statements are able to be signed off.
While audit committees have broader responsibilities than just finances, they can assist with the financial
governance of the council, both through the committee’s activities and its existence as a source of review and
comment.
Most audit committees include external members and individual councillors. In certain circumstances the
committee can be used as a sounding board for sensitive issues. Best practice is to have an external and
page 69 / 96
independent member of the committee as chair.
Local Government Victoria’s publication Audit committees: A guide to good practice for local government looks at
this topic in greater depth. To obtain a copy contact Local Government Victoria.
WHAT IS NEEDED FOR GOOD FINANCIAL MANAGEMENT?
In order to fulfil its financial management role, council must ensure that the following staff, systems and functions
are in place:
modern and robust computer-based financial systems
suitably qualified and experienced staff available to manage the finances
suitably qualified and appropriately independent internal audit functions and/or audit committee are operating.
Council is ultimately accountable for all of this.
page 70 / 96
THE STRATEGIC RESOURCE PLAN
The Strategic Resource Plan is a key part of good financial management. It ensures that the council plan
is properly resourced and that the council remains financially viable.
The Strategic Resource Plan and the council plan are clearly interdependent. This is because the goals in the
council plan must be influenced by what is financially possible.
SETTING UP AND UPDATING THE STRATEGIC RESOURCE PLAN
Section 126 of the Local Government Act 1989 states that the Strategic Resource Plan (SRP) must be set for a
period of four years. The SRP must also be updated each year to ensure that it includes the annual budget year
and the following three years. In practice, the council should prepare a five-to-ten year financial plan, for both the
operating and capital budgets, to assist with internal planning and augment the SRP.
What should the Strategic Resource Plan contain?
The SRP should normally include:
analysis of council’s current financial position
consideration of various assumptions (population growth, CPI trends and economic development)
and strategies that underpin an overall financial plan (rating and grants), and expenditure (labour, capital
works, asset management, borrowings and debt management, service levels and so on)
sensitivity analyses on these assumptions and strategies
development of options
determination and assessment of preferred model
supporting documentation.
COUNCILLORS’ ROLE IN DEVELOPING THE STRATEGIC RESOURCE PLAN
Because councillors (sitting as council) are responsible for the SRP, they must:
ensure there is a good process for developing the SRP – this process should involve councillors at an
early stage to ensure their visions and views are taken into account prior to being endorsed (they are less
likely to ‘own’ a draft plan which has been fully developed by the administration)
understand the assumptions and strategies underpinning the SRP – it’s particularly important that
council understand the key factors contributing to costs and income
determine the extent of, oversee and be involved with, community input into the SRP – the development of
key strategic and policy positions should incorporate a community consultation plan
ensure that the SRP is reviewed annually.
Key issues for councillors
Councillors should focus on the important strategic and policy issues encompassed by the SRP. Some of
the questions they need to ask include:
Is the council financially viable into the future?
Are our rating levels and rating mix acceptable and appropriate for our municipality? Do they reflect
how our community is developing?
Is our community satisfied with current service levels?
Do we have appropriate user charges?
Are we recovering costs appropriately?
Are we complying with government policy?
Have we exhausted all avenues of grant and other non-rate funding?
Should we borrow for capital works and/or fund them from revenue? What are the implications of our decision
page 71 / 96
for the level of capital works and infrastructure maintenance?
Can the current level of debt management be sustained?
Do we meet legislative and financial reporting requirements?
page 72 / 96
THE ANNUAL BUDGET
A prime responsibility of council is to set the annual budget. The budget shows how the activities in the council plan
will be resourced for a particular year. This is outlined in Section 127 of the Local Government Act 1989.
Because the budget is the annual articulation of the Strategic Resource Plan, many of the issues which apply to
this plan, are also relevant to the annual budget.
ROLE OF COUNCILLORS AND THE ANNUAL BUDGET
Councillors need to endorse a budget preparation process and be involved early on to ensure that they have
the appropriate high-level input into budget development. The budget preparation process should meet statutory
and strategic timelines. A well-managed process will ensure that the next year’s budget is adopted by the end of
the current financial year.
Because the annual budget should link with the council plan and the Strategic Resource Plan (SRP), councillors
need to be aware when there are significant differences and understand how this will affect both plans.
There should also be early discussions with the administration about the assumptions around issues such as
debt management, rates strategy, charges strategy and capital works.
While the councillors’ role is to primarily focus on the strategic and policy elements of the budget, they will
also naturally be interested in specific projects and issues. This can result in tensions which need to be recognised
and given the adequate time to be addressed.
Key questions for councillors
Some of the questions that councillors should ask themselves during the process of preparing the budget:
Do we have a budget preparation timetable and process that meets statutory requirements and gives us
enough time to resolve major issues?
Has the budget been prepared within the framework provided by the SRP? If not, what are the consequences
for the SRP? Will it be reworked to incorporate the long-term impact of current decisions?
How will information be presented to enable us to make the appropriate informed decisions?
Is the proposed level of debt management appropriate?
What opportunities will we have to work through the key issues?
Will the community have opportunities to provide input into the budget early in the process?
Is the income from the rates which was envisaged in the SRP, still acceptable?
Does the budget deliver the council plan outcomes that were envisaged?
page 73 / 96
FINANCIAL REPORTING
Regular financial reports to council are required by Section 138 of the Local Government Act 1989 and are a critical
part of good management. They are the prime means by which council receives the information it needs to meet its
accountability requirements.
WHY IS FINANCIAL REPORTING IMPORTANT?
Councillors need to be confident that the information is robust and accurate. It should be presented to them in a
way that is simple and easy to understand. It should also be supported by appropriate independent advice and
evidence.
Well functioning and independent internal auditing helps provide validity and assurance to the financial
monitoring process. It also ensures there are no surprises for either council or the administration.
COUNCILLORS’ RESPONSIBILITY FOR FINANCIAL REPORTING
Councillors are collectively responsible for the overall financial viability of the council. They exercise this
accountability through careful review of any variances in the budget. Council’s accountability is for the big picture
and this should be its focus.
Councillors cannot simply rely on the assurance from the administration that all is well. As they are
ultimately accountable, they must ensure they understand what ‘all is well’ means. If it turns out that all is not well,
then councillors will be under scrutiny.
Council may establish a committee or nominate a councillor to provide leadership on financial accountability. This
may improve the management of financial matters, but does not reduce the individual and collective accountability
of elected members.
MONITORING PERFORMANCE AGAINST BUDGET
The Local Government Act states that financial reporting must occur at least every quarter. Each council can
determine the frequency of reporting so that it not only meets the accountability requirements but also takes
into account what is feasible given the available resources. As a general guide, monthly reporting is considered to
be good practice. The key measures should be cash resources, operating results, balance sheets and financial Key
Performance Indicators (KPIs).
Getting the big picture
Reporting should have a whole-of-council focus. In other words, council should be getting the big picture.
Favourable and unfavourable variances need to be highlighted in a way which helps councillors understand the
impact of the variances on the budget and what remedial action can be taken. The report should also include
analysis and insightful commentary on the key variances, as well as a statement about their impact on the
full-year’s figures.
The council also needs to ensure that the budget has been properly adjusted to take into account monthly patterns
in expenditure and income. Being told that every variance is a timing issue is just an excuse and should
raise questions about the veracity of the financial information provided. As a general rule, the budget needs to be
reforecasted at least every six months, although three months is desirable.
Checking figures
Councillors need to check that the actual figures are reconciled and prepared on an accrual basis. While these are
accounting concepts, councillors need to satisfy themselves that the information they are given reflects the real
page 74 / 96
situation. A handy prompt is cash in the bank. If this is fluctuating wildly or reducing over time without proper
explanation, councillors are entitled to be concerned.
A financial report should not be reviewed in isolation. It should be seen in the context of other KPIs, which relate
to achievement of council’s goals. It’s not simply enough to come in on budget, if there are significant
shortcomings in the achievement of goals.
ANNUAL FINANCIAL STATEMENT
The annual financial statement is an important reflection of the council’s stewardship of financial resources over
the past year. It is one of a series of important components of the annual report that measure council’s
performance.
Councillors should not have to be accountants to understand the financial reports. They need to be certain that
the report will help them understand what is happening by asking the following questions:
Is it based on reliable data? Are there lots of end-of-year adjustments? Are the explanations for
these acceptable?
Are appropriate strategies being put forward for addressing significant end-of-year variances when future
budgets are prepared?
Are councillors confident in the audit process?
Are the auditors raising lots of important issues?
Is a consistent reporting framework being used?
page 75 / 96
PLANNING & GOVERNANCE
Planning decisions are some of the most significant and complex in local government. Because councillors often
take on different roles during the planning application process, it is crucial for good governance that they
understand each stage of the process and the associated responsibilities.
This section looks at some of the important elements affecting the way planning application decisions are made
and the different roles councillors play during the decision-making process.
page 76 / 96
WHY IS GOOD GOVERNANCE IMPORTANT FOR PLANNING?
Planning can be one of the most important and challenging areas for councillors. Strategic land use planning is a
vital part of how a municipality will develop now and into the future.
Statutory planning decisions are complex and often controversial. They demand high levels of knowledge and
understanding about the processes, the statutory requirements and the different roles that a councillor has to play.
This is important because good governance involves good decision-making processes and being clear about
the different roles.
STATUTORY AND STRATEGIC PLANNING
Participation in the land use planning process is one of the major tasks of a councillor. Land use planning is also
often a key pressure point between councillors and their communities.
Statutory planning involves administering the planning scheme and assessing permit applications. Strategic
planning is used to describe activities relating to the future planning and development of the municipality.
These activities are outlined in the Municipal Association of Victoria’s Land use planning in Victoria
guide. This publication also highlights a number of good governance issues relating to councillors’ involvement in
land use planning.
NATURAL JUSTICE AND KEEPING AN OPEN MIND
As decision-makers on planning applications, councillors should not make up their minds (or appear to have made
up their minds) before they have reviewed all the available information and advice. This is particularly relevant
when councillors make public statements or promises during election campaigns.
Councillors can of course have opinions, but they must be able to show that while they believe something based on
what they know at a particular point in time, they’re still able to be persuaded to change their minds if provided with
further advice or information.
See natural justice for more information about how it underpins local government decision making.
THE IMPORTANCE OF STRATEGIC PLANNING
The most significant contribution of councillors to the planning process is when they establish the strategic
framework in which decisions get made. Their participation in the development and review of municipal strategic
statements, local planning policy frameworks and local other policies allows them to shape the vision for the
municipality and how it will look in the future.
For this reason, councillors should ensure that they put sufficient energy and time into policy development and
review. While this may not have the intensity of a controversial local planning application, it has greater impact on
the future than any single decision on a specific planning application.
page 77 / 96
PLANNING & COUNCILLOR ROLES
Most statutory planning decisions are made by council officers (under delegation), but a certain proportion go to the
council for a decision. These can often be large applications or applications which have received
objections. Councillors can be involved at various stages of a planning application process and can play different
roles at different times.
DECISION MAKER
Councillors, sitting as council (or a council planning committee with delegated powers), are members of the
Responsible Authority charged with making decisions in individual applications. These decisions are made
according to the planning scheme and other relevant local policies.
While there’s scope for interpretation, the decisions are administrative (in judicial terminology) because they are
based on a legislative framework. Councillors’ individual opinions about a proposed development are only relevant
in that they may impact on their interpretation of the legislation. Councillors must base their decisions on the
legislative framework. This is also the basis for review of a council decision by the Victorian Civil Administration
Tribunal (VCAT).
COMMUNITY REPRESENTATIVE
Members of the community may lobby councillors about individual planning applications. These community
members often expect their elected representative to act according to their wishes at all stages of the application
process.
Councillors may be in a position to ensure that the decision makers are aware of their constituents’ views.
However, their statutory obligations as members of the Responsible Authority, sometimes mean that they cannot
act on these views.
Community members may not understand that councillors are not always able to vote in favour of the constituents’
position. They also may not understand that when a decision is inconsistent with the local planning requirements, it
can be overturned by VCAT if the applicant appeals. Both of these situations can have negative political
consequences for the councillor.
MEDIATOR
Councillors may become involved in the planning consultation process prior to the council making a decision on an
application. The consultation process usually looks for common ground between the applicant and objectors.
Ideally the process will result in a mutually acceptable proposal which can then go to council for approval and, if
not, at least a narrowing of the points of difference.
In these circumstances, councillors (who often chair as well as participate in consultation meetings) are playing a
mediating role, which is quite different to the roles of representative and decision maker.
ROLE CLARITY IS IMPORTANT
It is therefore important that councillors understand what role they are playing when they participate in different
stages of the planning process. While they’re only required to participate in the decision-making stage, if they do
become involved in other stages of the process, they must be very clear about the role they are playing.
Their representative role means that there will be considerable pressure on them to engage with their constituents
over applications which have generated local interest. Depending on the protocols that have been established
between fellow councillors and the council administration, they are able to choose whether they attend, observe,
participate in or chair consultation meetings. However they also need to be aware of the changing roles and how
page 78 / 96
this might appear to their constituents.
Councillors should communicate with their constituents and other stakeholders about the requirements of these
different roles. A useful approach for councillors can be to:
explain what their role will be in the early stages of the process
listen to the views of constituents
consider the views of the applicant and objectors
be mindful of those who, for whatever reason, have chosen not to make a representation on the
planning application.
As the application proceeds to a decision, councillors move from what is essentially a listening and possibly
mediating role, to focussing on the legislation and the rules that determine what can be legitimately considered in
determining the application.
When participants and stakeholders understand how and why a councillor’s role can change at different stages,
the decision-making processes are more transparent and accountable.
page 79 / 96
SCENARIOS
These fictitious scenarios show a range of potential situations that councils may face where good governance
has broken down.
This section outlines twelve different scenarios, highlights were things have gone wrong and provides suggestions
for how to tackle the various situations.
page 80 / 96
DEALING WITH DISAFFECTED COUNCILLORS
ISSUE
Disaffected councillors can affect relationships between councillors, undermine the reputation of council, and
disrupt decision-making processes.
SCENARIO
John is a councillor in an outer urban municipality. He’s recently been on the losing side of a series of
votes including the council plan, the budget and some key projects. Now he‘s feeling marginalised and has started
to publicly criticise the council and its processes. The majority of his fellow councillors respond in-kind which
has led to poor behaviour, both inside and outside the chamber.
WHAT’S THE PROBLEM?
If councillors believe their views are not being considered in the decision-making process, they will look
for alternative ways to have an impact. Public or private criticism of other councillors and the administration, leaking
of information, and failing to distinguish between the views of the council and individual opinions can all make the
process of decision making more difficult, as well as undermine the council’s reputation in the local community.
HOW TO TACKLE THIS SITUATION
the mayor needs to determine whether the councillor’s motivations are legitimate or deliberately destructive –
the outcome may be the same, but the way the issue is handled can vary considerably
as the leader of the council, the mayor’s role is to ensure every councillor feels that they have a
meaningful part to play in the processes and that their views are being heard
both the mayor and the Chief Executive Officer should talk to the councillor and hopefully agree on a more
productive way of dealing with the situation
if confidential information has been leaked, the councillor must be made aware of the provisions and penalties
contained in the Local Government Act 1989 and told that they will be enforced
local government associations may be able to provide mediation or impartial advice to resolve the issue.
page 81 / 96
FORCING COUNCIL DECISIONS
ISSUE
Councillors who insist that a council decision is nothing more than ‘common sense’ prevent proper discussion and
debate.
SCENARIO
Mary who has been a councillor for a number of years, is insisting that council make a particular decision on the
hotly contested issue of the location for the new municipal offices. Her main argument in support of her position is
that ‘it’s just common sense’.
WHAT’S THE PROBLEM?
There can often be a number of legitimate views on an issue even when there is good information and
advice. Labelling one view as ‘common sense’ can imply that all the other views are not valid and that their
proponents lack common sense. The debate then often focuses on the meaning of ‘common sense’ and
personalities rather than on the issue itself.
HOW TO TACKLE THIS SITUATION
ensure there is good process in place for making decisions
base the decision on advice and information, rather than on subjective views, such as ‘it’s just
common sense’
ensure there is a good consultation process to find out what stakeholders really think
focus on the issues rather than on personal opinion
provide opportunities for all councillors to voice their opinion – the mayor’s role is important in
providing leadership in the council.
page 82 / 96
LACKING FINANCIAL ACCOUNTABILITY
ISSUE
Councillors who accept the advice of their portfolio councillor without question are not doing the work they should
do.
SCENARIO
An inner urban council has a system of portfolio councillors. Lily is the portfolio councillor for finance. She
has assured her fellow councillors that they don’t really need to worry about studying the financial accounts
this year because she has been through them with the CEO and can guarantee that they are all well and truly
in order.
WHAT’S THE PROBLEM?
Council is collectively responsible for the council’s finances and each councillor is responsible for their own vote.
All councillors must ensure that they have all the information they need so that they can make informed decisions
and vote accordingly on financial matters.
HOW TO TACKLE THIS SITUATION
financial reports need to be presented in the most accessible way possible so that all councillors
can understand the information
councillors must ask questions about any information that is not clear
council needs to ensure the portfolio system (if applicable) is seen as a means of improving
information exchange and communication, not as a means of outsourcing accountability.
page 83 / 96
REACTING TO THE LOUDEST VOICES IN THE COMMUNITY
ISSUE
Councillors who make decisions to keep the most vocal quiet are not necessarily representing the views of
everyone in the community.
SCENARIO
The council plan has identified a small branch library for closure because patronage has been falling significantly in
recent years. During the same period, pressure on the main branches has increased. The local Friends of the
Library group has been running an active media campaign. There have also been noisy demonstrations at council
meetings. In the face of this, council has decided, yet again, to defer a decision.
WHAT’S THE PROBLEM?
Council seems to regularly placate the most active and the noisiest elements of the community when
making decisions. Because of this, the interests of every section of the community are not being taken into
account.
HOW TO TACKLE THIS SITUATION
councillors should acknowledge that this is happening and consider which feedback from constituents,
community groups and the media is relevant
councillors need to have another look at the council plan outside of the normal review process
the mayor should play a leadership role as the leader of all councillors
councillors must pay attention to the consultation processes – everyone affected by important decisions
should be listened to, not just those who shout the loudest
council should have been aware of stakeholder views before making the decision
council should review the decision-making processes for their openness and transparency
the administration needs to ensure the advice reflects all the issues, consequences and options
councillors need to be reminded that placating the ‘loudest voices’ not only creates precedents which can be
difficult to break, but also impacts badly on the public perception of local governments.
page 84 / 96
COUNCILLOR CONFUSION OVER CEO LOYALITIES
ISSUE
Councillors who believe the CEO’s loyalties are with the previous council, need to understand that policies don’t
automatically change after an election.
SCENARIO
Following recent local government elections in a regional municipality, a new group of councillors have come into
office with quite different policy ideas to those of the previous council. These councillors have become frustrated
because the policies of the previous council continue unchanged for some time. They begin to express
dissatisfaction with the Chief Executive Officer (CEO) and believe that things won’t happen until they can appoint
their own CEO.
WHAT’S THE PROBLEM?
Councillors don’t believe that the CEO is committed to helping them achieve their goals. This sometimes happens
when a new council has to work with a CEO who was appointed by a previous council. Councillors think things
should change automatically as a result of their election, but don’t understand that the CEO is required by the
Local Government Act 1989 to implement the policies which are in place ‘without delay’, and cannot put them on
hold or implement a different policy until they are changed by council.
HOW TO TACKLE THIS SITUATION
councillors and the CEO need to find a way to work together because it is not appropriate for every
new council to appoint a CEO
councillors need to understand that policies only change as a result of a majority vote at a council meeting
new councillors should be briefed on how policies can be changed or implemented
councillors and the administration both need to understand the role of the council – it sets the strategic goals
and the administration helps to achieve them
councillors need to understand the role of the administration – the relationship between the mayor and CEO is
important in achieving this
everyone needs to understand that the entity of council continues unchanged from one council term to the
next and it takes time and good processes to change policies and directions
councillors and the administration need to devote time and energy to the council planning process so that
goals are understood and owned by all
council and the CEO need to agree on what the CEO is expected to deliver – this should provide a
fair platform for the CEO’s performance appraisal
page 85 / 96
COUNCILLOR & OFFICER RELATIONSHIP BREAKDOWN
ISSUE
A divisive and dysfunctional relationship between councillors and council officers can seriously affect the operation
of local government.
SCENARIO
Communication between councillors and council officers has completely broken down in a large suburban council.
Councillors regularly make inflammatory statements to the local media claiming that they have no power because
council officers are really making all decisions.
WHAT’S THE PROBLEM?
If councillors and the administration don’t understand each other’s roles or the processes for making decisions,
this can lead to serious misunderstandings and dysfunctional relationships. When this happens the relationship is
characterised by public criticism of each other and a general lack of respect.
HOW TO TACKLE THIS SITUATION
the mayor and Chief Executive Officer (CEO) must work together to provide leadership, as well as model
respect for the administration and elected members
expectations need to be clarified to avoid bad feelings – councillors and senior management need to discuss
the issues and how they can be addressed
roles need to be reviewed, redefined and understood by all – everyone should be given the opportunity to
contribute on aspects that affect their role
the quality of advice, systems and processes – particularly on the hot issues – should be reviewed
protocols should be developed to handle criticism – public outbursts should not be tolerated and all sides need
to be open to constructive feedback
the CEO should ensure that the administration’s culture supports democratic governance – this
involves leadership from senior management and training for staff
the mayor and CEO need to ensure that councillors understand what can reasonably be expected from the
administration and how contact can be made (protocols can help)
local government associations should be contacted for assistance if a serious breakdown occurs.
page 86 / 96
SPLIT VOTING ON KEY COUNCIL DECISIONS
ISSUE
Consistently split votes on key council decisions can leave the ‘losing’ councillors feeling powerless and alienated.
SCENARIO
An inner urban council has seven councillors. Four are pro-development and three are pro-environment. All major
decisions are made on a 4:3 vote reflecting these divisions. The environmentalists feel like they have no power and
have started to become publicly critical of the council’s processes and decisions. As a result council’s reputation
is suffering.
WHAT’S THE PROBLEM?
When there’s a pattern of split or close votes on key issues, the councillors on the ‘losing’ side start to
feel alienated and powerless. It can be very frustrating for councillors if they believe their opinions have not
being taken into consideration in the decision-making process. It can also mean that diversity of community
views are not being fully represented by council. Decision making simply becomes a numbers game which is
not good for the municipality in the long run.
HOW TO TACKLE THIS SITUATION
the mayor and councillors need to find ways to bring the ‘losing’ councillors back into the governance loop
the mayor, who may be on the ‘winning’ side, needs to actively engage with the minority councillors, both
within and outside the council chamber
part of the mayor’s role is to ensure that debate and decision making is open and inclusive
part of the Chief Executive Officer’s role is to ensure that information and advice takes into account all
councillors, not just the group which appears to have the numbers
the council plan and other important strategic documents should be reviewed to see if there is a basis for the
majority and minority views – the council plan should ideally reflect the diversity of community views.
page 87 / 96
LEAKING INFORMATION TO THE MEDIA
ISSUE
Councillors who leak confidential information to the media for their own political purposes undermine the
democratic decision-making process.
SCENARIO
A regional council is considering a major and expensive sports ground redevelopment. Chris, a longstanding
councillor, opposes the project but doesn’t think he has the numbers to win the vote. So he leaks confidential
briefing material, which focuses on the downsides of the proposal, to generate media interest and provoke
community outrage.
WHAT’S THE PROBLEM?
Individual councillors are using the local media to score points and pursue political goals. Using the media to force
particular decisions, attack colleagues and undermine the council is neither appropriate nor legitimate. It
deliberately subverts the democratic decision-making process. Leaking confidential information is a breach of
the Local Government Act 1989 and is punishable. It also reduces the confidence and willingness of external
bodies to deal with the council.
HOW TO TACKLE THIS SITUATION
councillors need to understand the nature of confidential information – it should be very clear if it is
not intended for public airing because publicising confidential information is illegal and
punishable under the Local Government Act 1989
councils should make sure that a good level of information is available to the public through various channels
– this will help to prevent leaking
councillors need to use the media appropriately as it is an important channel for councils to communicate with
their communities and for communities to become informed about local issues
council should recognise and support the legitimacy of ward councillors getting publicity on local issues
the difference between the views of the council and individual councillors needs to be understood by everyone
– councillors who liaise with the media must reinforce this
council should develop protocols for working with the media which improve understanding.
page 88 / 96
COMMUNITY OUTRAGE ON PLANNING
ISSUE
When a councillor appears to support constituents’ views, but then votes the other way, the community can
become angry and distrustful.
SCENARIO
Steve’s constituents are furious because he’s voted in favour of a major apartment development which many in
the community have opposed. They believe they made this very clear in meetings with him, as well as during
consultations with the applicant which he chaired.
WHAT’S THE PROBLEM?
Councillors can often have multiple roles on planning applications, which can be difficult for constituents to
understand. While councillors are obliged to consider their community’s views this doesn’t mean that they can
vote in favour of those views. Councillors have to make decisions based on whether the application is consistent
with the local planning scheme. This can reduce the scope for councillors to vote according to their personal
opinions or reflect the views of their constituents.
HOW TO TACKLE THIS SITUATION
councillors need to be clear what role they are playing in different stages of the application process
councillors should try to ensure that their constituents understand these roles
councillors need to understand their administrative role as part of the local planning authority
councillors should ensure that they are able to be persuaded by the information and advice they receive at the
decision making stage.
page 89 / 96
INFLUENCING RECOMMENDATIONS TO COUNCIL
ISSUE
Councillors who want to ‘win’ on an issue can inappropriately exert pressure on the administration to recommend
supporting a particular view.
SCENARIO
Susan strongly believes that a new housing development should contain expensive environmentally sustainable
features. She thinks her fellow councillors will support the idea if the administration makes the recommendation.
She’s been calling the relevant director and various council officers constantly trying to persuade them that the
environmental features should be included in the recommendations to council. She’s also attempted to put
pressure on them at task group and public meetings.
WHAT’S THE PROBLEM?
The administration’s role is to provide ‘frank and fearless’ advice to the council. This should be based on
information, consultation and professional opinion. It should not be the result of pressure from councillors.
Councillors will expect to be given high-quality, impartial advice and information, which will help them to form an
opinion and make a decision in the council meeting. The challenge for councillors, who are pushing strongly for a
particular decision, is to persuade their fellow councillors to support their view. They should not try to influence the
final decision by pressuring the administration to support a particular view via its recommendation.
HOW TO TACKLE THIS SITUATION
the mayor and Chief Executive Officer (CEO) need to ensure that everyone has a clear understanding of roles
– the administration’s role is to advise and implement, the council’s role is to consider the advice and make
the decision
the mayor and CEO should provide leadership to reinforce these roles
the mayor and CEO should encourage good relationships between councillors and the administration so that
communication does not spill over into undue influence
councillors and council officers should be clear that improper or undue influence is against the law
the administration and council need to ensure there are plenty of opportunities (as part of briefing sessions or
in other ways) for councillors to investigate all the available options.
page 90 / 96
LEADING DEBATE FROM THE COUNCIL CHAIR
ISSUE
A mayor who runs the council meeting in a way that favours the adoption of a particular recommendation
undermines good decision-making processes.
SCENARIO
David, who is mayor of a suburban council, strongly supports a recommendation which is currently being discussed
at the council meeting. A vigorous debate is taking place as a number of councillors are not in support of the
recommendation. David provides extra time for those arguing in favour, while restricting those arguing against to
the precise time limit set out in the local law. He comments unfavourably on every speech which argues against the
recommendation, and also takes the opportunity to make a speech in its favour from the chair.
WHAT’S THE PROBLEM?
The mayor has an important role in managing the meeting so that all councillors get a chance to present their views
and be heard by their colleagues. Taking a partisan position during a debate can detract from the mayor’s capacity
to manage the meeting in the interests of fairness and participation by all. Even the perception of partisan
management of the meeting can negatively impact on the decision-making process and can ultimately affect the
degree to which a decision is ‘owned’ by all councillors. Members of the community may also think the mayor is
not being impartial which can undermine confidence in the council.
HOW TO TACKLE THIS SITUATION
the mayor must manage the council meeting in a way which facilitates good decision-making processes and
the participation and engagement of all councillors
the mayor should be impartial and fair in managing the meeting, allowing all councillors to have the same
opportunity to present their views
if the mayor chooses to participate in the debate, they should make it clear that they are speaking in their
capacity as councillor, and not as mayor of the council
if the mayor is required to use a casting vote, they should be aware that they are voting in a different capacity
(this time as leader of the council) and should therefore consider the customs associated with the use of the
casting vote (the mayor’s casting vote need not be the same as their collaborative vote).
page 91 / 96
MAKING DECISIONS AT BRIEFINGS
ISSUE
When a council uses briefings to discuss key issues and reach consensus, the decision-making process is no
longer open and transparent.
SCENARIO
A council regularly uses briefings to work through the draft agenda for the next council meeting. In these sessions
councillors develop a consensus position on all the key issues in the agenda. There is little or no debate at the next
council meeting as the councillors already know all the outcomes.
WHAT’S THE PROBLEM?
Briefings should be used to ensure that councillors have all the information they need to develop an opinion on key
issues. This information can consist of research, background information and the results of any consultation
processes. Briefings should not be used to debate or develop a collective position on issues. This should happen in
council meetings where the decision-making process is transparent and open.
HOW TO TACKLE THIS SITUATION
councillors and the administration should understand and agree on the role of briefings in the decision-making
process
the administration should provide information to councillors in briefings
councillors should ask questions in briefings to satisfy themselves that they have sufficient information to form
an opinion on the issues in question
councils might consider whether the Chief Executive Officer should chair the briefings so that every councillor
has the opportunity to clarify information and ask questions
while conflict of interest requirements apply to briefings (via Assembly of Councillors provisions) this does not
imply that briefings are decision-making forums.
page 92 / 96
GLOSSARY
A list of the terms used on this website which relate to good governance in local government.
Administration
The paid staff of the local government including the Chief Executive Officer.
Annual budget
A council must prepare a budget for each financial year and adopt its budget by 31 August each year unless
granted an extension by the Minister for Local Government.
The budget must include information such as the standard statements for the budget year, a description of the
activities and initiatives to be funded in the budget, a statement of how those activities and initiatives will contribute
to the strategic objectives in the council plan, a statement of council rate levels, borrowings, debts and so on.
Annual plan
The activities and programs that a local government will deliver in any particular year as part of the four-year
council plan.
Chief Executive Officer (CEO)
The most senior position in the administration. The CEO is directly accountable to the council.
Common law
Derived from English laws which are based on custom or court decisions as opposed to legislated law or statutes.
Community
The entire population of a municipality which is made up of many different local and shared interest groups and
individuals.
Conflict of interest
This refers to situations where a councillor or council officer has personal interests in the decisions that they are
part of. For more information see Conflict of Interest.
Constituents
People within a councillor’s electoral area (whether single, multi or whole of municipality) who are voters.
Council
The group of elected members of the local government.
Councillor
An individual who is elected to council.
Council meeting
page 93 / 96
The elected members (councillors) meeting formally as council as set out in the Local Government Act 1989.
page 94 / 96
Council officers
A paid member of staff (see administration above).
Council plan
The strategic plan of the council which must include the objectives, the strategies for achieving these objectives for
at least four years, as well as the strategic indicators for monitoring the achievement of these objectives. The
council plan must also include the Strategic Resource Plan (see definition below).
Elected members
See councillors above.
Governance
This is the process for making and implementing decisions. For more information see What is good governance?.
In camera
Latin term meaning in the chamber or in private. On this website it refers to holding a council meeting which is
closed to the public.
Local government
This is used in two ways on this website. ‘A local government’ is a corporate entity for each municipality which is
made up of elected members (councillors) and the administration (council officers). ‘Local government’, by contrast,
is a collective reference to the sector comprising all the local governments.
Local Government Act
This is the state government Act under which local government operates.
Local laws
A piece of legislation enacted by a council.
Municipality
The geographic area of a local government.
Natural justice
This is a doctrine which ensures that decisions are made in a decent, fair and honest way by protecting against the
arbitrary exercise of power. For more information see Natural Justice.
Responsible Authority
The body responsible for administering the planning scheme in a particular geographical area. For municipalities,
the council is the Responsible Authority.
Resources
Refers to the equipment, people and money needed for local government programs and services.
Special committee
page 95 / 96
A formal committee of the council as defined in Section 86 of the Local Government Act 1989. Councils may
delegate some decision-making powers to these committees which can include just councillors or any combination
of councillors, council staff and other people.
Statutory planning
Statutory planning involves administering the planning scheme and assessing permit applications.
Strategic Resource Plan
The Strategic Resource Plan is a four-year plan (at the very least) which identifies the resources required to
achieve the strategic objectives in the council plan.
Wards
The geographical areas within a municipality which councillors are elected to represent. Wards can be single
councillor, multi-councillor or can comprise the whole municipality.
Powered by TCPDF (www.tcpdf.org)
page 96 / 96