local government act

Local government is the third level of government in Australia. It was established by an Act of state parliament.
In Victoria, local government is made up of 79 councils representing over 5.5 million people. Councils are area-based, representative governments with a legislative and electoral mandate to manage local issues and plan for the community’s needs.
Each council varies in size, population, rate base and resources, but all must operate in accordance with the Local Government Act 1989.
Local government is responsible for implementing many diverse programs, policies and regulations set by the Victorian and Australian governments. Councils also have to respond to local community needs. They have powers to set their own regulations and by-laws, and provide a range of services. Local laws developed by councils deal with important community safety, and peace and order issues.
Local laws often apply to noise, fire hazards, abandoned vehicles, parking permits, street stalls, disabled parking, furniture on footpaths, graffiti, burning off, animals in public spaces and nuisance pets.

Reporting obligations

Under Victorian legislation, councils must develop a council plan, strategic resource plan, annual budget and annual report.
The council plan specifies the council’s major goals. A strategic resource plan identifies the resources required to achieve the goals outlined in the council plan.
The annual budget delivers a single year’s financial resources to achieve council plan goals. Councils release draft budgets to consult with communities about the priority expenditure needs.
The annual report includes the council’s financial statements. Reports are independently audited by the Victorian auditor general.
Some important financial indicators used to measure financial performance include whether:

•  a surplus or deficit is delivered 
• there is enough cash to pay for immediate liabilities 
• debt redemption expenses and debt are excessive, relative to own-source revenue 
• a budgeted capital works program is delivered 
•  assets are adequately valued, which will directly affect depreciation.

A copy of the council’s Annual Report must be submitted to the Minister within three months of the end of each financial year. The report should be sent to (check this link): Municipal Association of Victoria