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LOCAL GOVERNMENT REMUNERATION TRIBUNAL

Report and Determination on the Categorisation of New and Reconstituted Councils.

REPORT:

1. On 31 May 2004 the Minister for Local Government, the Hon Tony Kelly MLC directed the Tribunal, pursuant to section 242 of the Local Government Act 1993 (the Act) to determine the Category for each of the new and reconstituted Councils which have been created as a result of the regional reviews.

2. Section 242 provides that:

“(1) The Minister may direct the Remuneration Tribunal to make a determination as to whether, and (if so) how, a determination already made should be altered in relation to such councillors or mayors as are specified in the direction.

(a) Such a determination must be made before the date specified for the purpose in the Minister’s direction.

(b) In making the determination, the Remuneration Tribunal is to take into consideration such matters as are specified in the Minister’s direction and such other matters as the Remuneration Tribunal thinks fit.”

3. Section 239 of the Act provides the broad functions of the Tribunal.

   “(1) The Remuneration Tribunal must, at least once every 3 years:

   (a) determine categories for councils and mayoral offices, and

   (b) place each council and mayoral office into one of the categories it has determined.

   (2) The determination of categories by the Remuneration Tribunal is for the purpose of enabling the Remuneration Tribunal to determine the maximum and minimum amounts of fees to be paid to mayors and councillors in each of the categories so determined.”

4. Section 241 of the Act provides that:

“The Remuneration Tribunal must, not later than 1 May in each year, determine, in each of the categories determined under section 239, the maximum and minimum amounts of fees to be paid during the following year to councillors (other than mayors) and mayors.”

5. In accordance with the legislation the Tribunal makes an annual determination on the Categories of each of the Councils in NSW and determines the minimum and maximum fees for each Category.
6. The determination currently in place was made in April 2003 (2003 determination) and remains in effect until 30 June 2004. The Tribunal, on 28 April 2004 made an annual determination (2004 determination) which will replace the 2003 annual determination when it comes into effect on and from 1 July 2004.
7. As a result of the regional reviews the Tribunal removed from the 2004 Determination those Councils, as advised to the Tribunal at that time, that had been either abolished, amalgamated or reconstituted. With the exception of the amalgamation of Sydney City Council with South Sydney City Council the Tribunal had insufficient information to be able to determine categories for the other new or reconstituted Councils.
8. In order for the Mayors and Councillors of the new Councils to receive fees as determined by the Tribunal it will be necessary for the Tribunal to place each of the Councils into an existing Category. Mayors and Councillors will then be able to receive fees in accordance with either the Tribunal’s 2003 determination – for those Mayors and Councillors who take office prior to 30 June 2003 – or the Tribunal’s 2004 determination which takes effect from 1 July 2004.
9. Because of the time constraints the Tribunal has not been able to undertake an assessment of each of the new Councils. The Tribunal is making a determination to ensure all Councils are listed in its Categories for remuneration purposes. A thorough review of the role and responsibilities of the new Councils will be undertaken at a later stage when there has been time to assess the impact of the changes.
10. In determining the Categories for the new Councils, the Tribunal has adopted the approach of placing the Councils in the Category of the predominant former Council area.

Local Government Remuneration Tribunal

(The Honourable Charles L Cullen Q.C.)

Dated: 9 June 2004

DETERMINATIONS

Determination No 1

The “Determination of Categories of Councils and County Councils for 2003/2004”, contained in the Tribunal’s Report of 30 April 2003 is amended as shown hereunder:

The Councils and their Categories listed below are added to the Determination with effect from their proclamation date.

The following Councils are removed from the Determination with effect from the proclamation date.

Determination No 2

The “Determination of Categorisation of Councils and County Councils for 2004/2005” contained in the Tribunal’s Report of 28 April 2004 is replaced by the Determination listed hereunder.

DETERMINATION OF CATEGORIES OF COUNCILS AND COUNTY COUNCILS FOR 2004/2005

Category S1 (1 Council) Sydney

Category S2 (3 Councils) Newcastle

Parramatta

Wollongong

Category S3 County Councils

Category S4 County Councils

(engaged in significant commercial activities)

Category 1A (2 Councils)

Blacktown

Penrith

Category 1. (16 Councils)

Category 2. (21 Councils)

Category 3. (32 Councils)

Category 4. (32 Councils)

Category 5. (47 Councils)

TOTAL GENERAL PURPOSE COUNCILS 154

Category S3 (12 Councils)

Category S4 (8 Councils)

TOTAL COUNTY COUNCILS 20

Local Government Remuneration Tribunal

(The Honourable Charles L Cullen Q.C.)

Dated: 9 June 2004