Managing local government rates and charges

Tabled Report 17: 2017–18

Tabled date

2018-06-28

Report year

2017-18

Local government Regions

Entities audited

Not identified in the published HTML audit scope.

Recommendations

1. QAO's text Addressed to: the Department of Local Government, Racing and Multicultural Affairs

   amends the Local Government Regulation 2012* to:

   • require councils to include in their revenue policies a long-term rates strategy (Chapter 2)
   • require councils to include in their revenue statements how annual decisions on rates and charges support financial sustainability(Chapter 3)
   • require a council's chief executive officer to certify to the mayor (in a prescribed form) that their council's final adopted budget complies with all legislative requirements (Chapter 4)

2. QAO's text Addressed to: the Department of Local Government, Racing and Multicultural Affairs

   continues to develop best practice tools and templates for councils on the budget and rates provisions of the Local Government Act 2009* and the Local Government Regulation 2012* (Chapter 4)

3. QAO's text Addressed to: the Department of Local Government, Racing and Multicultural Affairs

   develops resources and tools for councils on:

   • best practice community engagement approaches to strengthen community understanding of, and input into, the rates decisions required to ensure continuation of services (Chapter 3)
   • the budget documents and overdue rates and charges provisions of the Local Government Act 2009* and the Local Government Regulation 2012* (Chapter 4)
   • chapter 4 part 12 of the Local Government Regulation 2012* (Chapter 4).

4. QAO's text Addressed to: all Queensland councils

   document the actions they are taking to support their financial forecast that are required to achieve or maintain sustainability:

   • the actions should be specific, measurable, achievable, realistic, and time-bound, and be allocated to responsible officers (Chapter 3)
   • the document should have a long-term focus (10 years) and include the assumptions on which the forecast is based, the risks that may impact on achieving the forecast, and the factors driving the forecast (including links to strategic asset management plans) (Chapter 3)

5. QAO's text Addressed to: all Queensland councils

   implement an appropriate costing model to gain a clear understanding of the full cost of delivering utilities and use this information to annually review pricing (Chapter 3)

6. QAO's text Addressed to: all Queensland councils

   implement appropriate community engagement approaches to strengthen community understanding of, and input into, the rates decisions required to ensure continuation of services (Chapter 3)

7. QAO's text Addressed to: all Queensland councils

   publish a hardship policy to assist ratepayers to seek a concession for hardship as allowed by section 120(1)(c) of the Local Government Regulation 2012* (Chapter 4)

8. QAO's text Addressed to: all Queensland councils

   ensure that all future budget documents and resolutions and rates and charges resolutions comply with all requirements in the Local Government Act 2009*  and the Local Government Regulation 2012*

9. QAO's text Addressed to: all Queensland councils

   train staff on all relevant requirements in the Local Government Regulation 2012*, and on better practice debt collection techniques (Chapter 4).

   *all recommendations about the Local Government Act 2009 and the Local Government Regulation 2012 apply to the equivalent provisions in the City of Brisbane Act 2010 and the City of Brisbane Regulation 2012 as relevant.

Authoritative report — Queensland Audit Office

Report PDF on QAO