As local
governments commence their annual budget setting process for the 2017-18
financial year it is an opportune time for a reminder about how the
budget process influences rating models.
In accordance with section 6.36(3)(a) of the
Local Government Act 1995 the advertised rates of a local
government are to apply based on an estimate of the budget deficiency.
This means that local governments need to consider the budget
requirements and review efficiencies as per Section 5.2(c) of the
Financial Management Regulations 1996 before determining the rating model and rates in the dollar.
The
rate in the dollar should be supported by the budgeted deficiency,
which is based on the expected expenditure for the provision of
community services and amenities as outlined in the strategic community
plan and corporate business plan.
Additionally, as part of the
budget review and planning process, it is important that in accordance
with section 3.18(3)(c) the local government is satisfied that the
services and facilities it provides are managed efficiently and
effectively.
To assist local governments with the budget process
including timeframes and legislative considerations, the Department of
Local Government and Communities has prepared a
factsheet .
This document highlights times when legislative compliance is necessary
and when council consideration or a resolution is required.
For more information, please contact Ms Darrelle Merritt, senior legislation and strategy officer on 61 8 6552 1479, or email
darrelle.merritt@dlgc.wa.gov.au.
Jennifer Mathews
Director General
4 January 2017