By JESSE GRAHAM
WARD funds are set to be banned state-wide following a governmental report that praised Yarra Ranges Council, and community groups may feel the impact.
Councillor Discretionary Funds (CDFs) will be prohibited under the Local Government Amendment (Governance and Conduct Bill) 2014, which is set to go through Parliament in the coming month.
Discretionary Funds – also called ward funds – are given by councillors to community groups and individuals at short notice.
Yarra Ranges Mayor Fiona McAllister said a ban would be felt by small groups that needed funds urgently.
She said few councils in Victoria made use of CDFs but that they had their uses in getting money to community causes – such as local sportspeople competing in elite-level competitions – quickly.
Cr McAllister acknowledged that there was a need for transparency and accountability in the way that councils spend money, and said it was too early to assess the impact of the legislation.
“There’s strong support at council for quick-release funds for smaller community needs,” she said.
“If the bill goes through, we will look at how we can still provide for smaller needs while being compliant.”
Should the bill pass, all money being spent by the council will be considered for a formal resolution, rather than using discretionary processes, in an effort to make funding allocations more transparent and accountable.
The ban on CDF policies will not reduce funding available from councils but instead re-directs how they are allocated to community groups and individuals.
The bill follows a report by the Local Government Inspectorate in October last year which assessed discretionary fund policies in 32 councils which still used them.
The report singled out Yarra Ranges Council as one of seven councils that demonstrated good ward fund practice.
However, it said that CDF programs generally exposed councils to integrity and transparency risks.
Following the report, Murrindindi Shire Council chose to discontinue its CDF program.
The bill will also clarify roles, with new councillors required to complete an induction program and new offences added for unlawfully directing council staff.
The mayor will also have the ability to evict unruly councillors from meetings if they ignore warnings.
Yarra Ranges Council’s ward fund policies can be viewed at www.yarraranges.vic.gov.au.
