Posted 15/5/06

MRRA Submission

Setting Of Mayoral And Councillor Allowances, Macedon Ranges Shire

Councillors’ Allowances

The maximum available ($15,000) is currently paid to Councillors.  MRRA does not object to retaining this amount, as most Councillors return this cost to the community in the performance of Councillor-related duties.

Mayoral Allowance

The Association does not support continuing to provide the maximum available Mayoral allowance.  While acknowledging that a Mayor may have some duties additional to those of other Councillors, the Association does not believe the difference warrants an allowance three times greater than that received by other Councillors.

MRRA  recommends the Mayoral allowance be capped at $30,000 annually.

Overall Costs To Ratepayers

The Review focuses on the payment of Councillor and Mayoral allowances, as provided for under the Local Government Act.  However, the Review notice also identified other benefits provided to Councillors additional to allowances (e.g. computers, phones, a vehicle for the Mayor’s use, etc.). 

Associated costs were not disclosed.  MRRA believes they should have been.  Ratepayers are entitled to know total expenditure on Councillors, with a full account of allowances, benefits and reimbursements currently received, costs of meals, wine etc., before commenting on the appropriateness or otherwise of allowances. 

The Association recommends Council provide this information and allow more time for public comment prior to a final Council decision on allowances.

Processes re Allowances, Benefits and Reimbursements

The Association understands that under the Local Government Act, Councillors may receive an allowance, and may also be reimbursed for legitimate costs incurred in the performance of their duties. 

As costs for additional benefits are not included in allowances, and don’t seem to logically fall under ‘reimbursement of costs incurred’, the Association is not quite clear about where the authority for providing those additional benefits comes from. 

Although costs are unknown, the Association does not necessarily object to benefits, in principle; it does however hold concerns for openness, transparency and accountability.  That is, there does not seem to be an ‘obvious’ enabling provision at hand authorizing the additional benefits, and there has been no public disclosure of the costs of those benefits to ratepayers. 

These matters should be public, and subject to public comment.

Mayor’s Role

A Mayor’s role, as described in the newspaper notice, appears to well exceed Local Government Act and community expectations.  While it is desirable for a Mayor to be seen as (and be) a figurehead for the Council (and community), there is a substantial difference between being a figurehead who chairs meetings, and being a ‘political manager’ of the Council. 

MRRA’s  understanding is that there is no authority under the Local Government Act or Council’s Local Law 5 for a Mayor to have such a role, or to have any form of ‘ownership’ over other Councillors – indeed, to do so would make a Mayor a de facto ‘boss’ of Council (a clear abuse of the position) and signal a deviation from democratic principles – a deviation not known to have been condoned by residents.  

MRRA makes two recommendations:  (1)  The definition of the Mayoral role be revised to reflect only the functions and authority bestowed by the Local Government (or other relevant) Act, and (2) any additional ‘roles’ be subject to a formal community consultation and adoption process.