Bill passed to get councils back to basics

The Local Government (System Improvements) Amendment Bill has passed its third reading, marking a shift for councils to prioritise essential services such as roading, water, infrastructure and rubbish over broader wellbeing objectives. Minister Simon Watts stated the legislation aims to ensure councils deliver the services ratepayers rely on while maintaining sound financial management. The Bill removes the previous focus on the four ‘well-beings’, replacing it with a clearer mandate to focus on core functions. Councils retain local decision-making authority but are now expected to prioritise these fundamental services.

To enhance transparency, the Bill introduces six-monthly reporting requirements for councils, providing ratepayers with regular updates on performance and spending. This aims to give residents clearer insight into where their rates are allocated and whether they receive value for money. The reporting framework will also enable easier comparison between councils, supporting greater accountability. The Government emphasises that better information fosters stronger democratic oversight and trust in local governance.

The legislation restricts voting rights in councils to elected members, reinforcing democratic accountability while allowing unelected experts to contribute advice without voting power. It also modernises outdated council processes, reduces unnecessary compliance costs, and improves elected members’ access to council information. These changes are designed to streamline operations and improve efficiency within local government structures.

Councils will gain new tools to recover growth-related infrastructure costs from Fast-Track approved developments that create unplanned demand or proceed ahead of planned infrastructure investment. The Government states that growth should fund growth, ensuring developments contribute to the costs they impose rather than burdening existing ratepayers. The Fast-Track approvals process remains unchanged, but the reforms provide a mechanism for councils to address funding shortfalls linked to rapid development.