The Local Government Amendment Act (LGAA) came into force in July 1996 and provides a statutory regime for the financial management of local authorities.
The general purpose of LGAA is to promote prudent, effective and efficient financial management by local authorities. It prescribes the following three-step approach for determining how expenditure needs are to be funded:
Step 1 Allocation of costs to groups or individuals, having consideration for:
Step 2 Modification of the cost allocation to take in to consideration:
Step 3 Consideration of the practicalities and efficiency of funding expenditure in a way that achieves the desired cost allocation having regard for:
LGA recognises that decisions on funding policy are inherently subjective and complex. Elected representatives have to make judgements on an informed basis and following the process required in the LGA. The LGA provides that the process of formulating decisions is not exact, Council may use discretion, Council must act reasonably and Council must consult.
Council has prepared a Funding Policy in accordance with the requirements of the LGAA. Council’s Funding Policy for Project Watershed is set out in section 16 of this document.