Local Government (City of Parramatta and Cumberland) Proclamation 2016
In ForceNSW
Jurisdiction
New South Wales
Act Number
241 of 2016
Collection
regulation
Plain English Summary
7/10 complexity
This proclamation reorganises local government areas by amalgamating the Cities of Auburn, Holroyd and Parramatta into a new City of Parramatta and creating a Cumberland council, while altering The Hills Shire and Hornsby boundaries.
It dissolves former councils, appoints Administrators and interim managers, fixes the first election date, and transfers staff, assets, rights, liabilities, rates and planning instruments to the new councils for a specified transitional period.
This Proclamation effects local government boundary changes, dissolutions, and transfers of functions, staff, assets, rights and liabilities for the areas specified in its Table and Schedules. Mechanically, it: (a) amends boundaries and amalgamates specified areas so that new areas are constituted on the day the Proclamation is published on the NSW legislation website (the amalgamation day) (clause 2; clause 4(1)); (b) dissolves the councils of the areas amalgamated by the Proclamation (clause 4(3)); (c) constitutes two new councils identified in Schedules 1 and 2 (the City of Parramatta Council and the Cumberland Council), sets their ward structures, councillor numbers and interim governance arrangements (Schedules 1 and 2); (d) appoints Administrators and interim general managers for the initial period and authorises the Administrator to exercise the functions of the council and mayor during that period (clauses 12-14; Schedules 1 and 2, clauses 4-5); (e) provides for transfer and vesting of fixed assets, other assets, rights and liabilities and for staff transfers with effect on and from the amalgamation day (clauses 32-36; clause 37(1)); (f) preserves the continuing force of approvals, notices and proceedings started by former councils, subject to exceptions for assets, staff or parts of areas not transferred (clauses 18, 38); (g) directs transitional arrangements for codes, policies, development control plans and contributions plans, and sets short deadlines for strategic and operational plans and audited financial reporting (clauses 20-24, 29-30); and (h) fixes certain rating arrangements for the 2016/2017 rating year and prescribes the method for calculating the new council’s notional general income (clauses 27-28). The Minister is given express power to determine any matter required to give effect to the Proclamation, including matters the councils fail to agree upon, and may delegate those functions to the Chief Executive and sub-delegate further (clause 5(1), (2), (4), (5)). The Proclamation also provides that various actions or delegations of former councils operate as if taken by the new councils (clauses 6, 19). Specific operational details appear in Schedule 1 for the City of Parramatta (including appointment of Amanda Chadwick as Administrator, Greg Dyer as interim general manager, 15 councillors, and 5 wards (Schedules 1, clauses 4-7)) and Schedule 2 for Cumberland (including appointment of Viv May as Administrator, Merv Ismay as interim general manager, Mark Brisby as deputy general manager, 15 councillors and 5 wards (Schedule 2, clauses 3-7)). The Proclamation preserves and translates references in other instruments to former or altered councils to the relevant new council or part of the new council (clause 6).
Current sections
Direct links to the current provisions in Local Government (City of Parramatta and Cumberland) Proclamation 2016.
This Proclamation commences on the day and at the time on which it is published on the NSW legislation website.
3
Definitions
3 Definitions
3 Definitions
(1) In this Proclamation:
altered area means an area the boundaries of which are altered by this Proclamation (other than an area amalgamated by this Proclamation).
altered council means the council of an altered area.
amalgamation day means the time of the day on which this Proclamation commences.
assets means any legal or equitable estate or interest (whether present or future, whether vested or contingent and whether personal or assignable) in real or personal property of any description (including money), and includes securities, choses in action and documents.
Chief Executive means the Chief Executive of the Office of Local Government.
fixed asset of a council means:
(a) land, whether built on or not, or
(b) a building of any description or any part of it and appurtenances to it, or
(c) plant, equipment or any other thing that is located only at one place.
former area means an area amalgamated by this Proclamation and includes any part of an altered area incorporated in a new area by this Proclamation.
former council means the council of a former area and includes, in relation to any part of an altered area incorporated in a new area by this Proclamation, the council of that altered area.
initial period means the period commencing on the amalgamation day and ending immediately before the first meeting of the new council held after the first council elections for the council.
liabilities means any liabilities, debts or obligations (whether present or future, whether vested or contingent and whether personal or assignable).
new area means an area constituted by this Proclamation.
new council means the council of a new area constituted by section 219 of the Act.
rights means any rights, powers, privileges or immunities (whether present or future, whether vested or contingent and whether personal or assignable).
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this Proclamation.
(2) Notes included in this Proclamation do not form part of this Proclamation.
4
Amalgamations and boundary alterations
4 Amalgamations and boundary alterations
4 Amalgamations and boundary alterations
(1) The areas specified in the Table to this subclause are amalgamated, and the boundaries of the other areas specified in this Table are altered, to constitute new areas when this Proclamation commences with:
(a) the names specified in the Table, and
(b) the boundaries shown for each new area on the maps kept in the register of public surveys on the amalgamation day and having the identifier numbers specified beside the new areas in the Table.
Table
| Column 1 | Column 2 | Column 3 | Column 4 |
| Areas amalgamated | Areas altered | New areas | Map identifier numbers |
| City of Auburn, City of Holroyd, City of Parramatta | The Hills Shire, Hornsby | City of Parramatta | PP5002 |
| Cumberland | PP5003 |
(2) The boundaries for the The Hills Shire area, and the Hornsby area, as altered by this Proclamation, are the boundaries shown on the maps kept in the register of public surveys on the amalgamation day and having the identifier numbers specified in the Table to this subclause:
(3) The councils of the areas amalgamated by this Proclamation are dissolved.
(4) Nothing in this Proclamation operates to abolish The Hills Shire Council or the Hornsby Shire Council.
(5) Schedules 1 and 2 contain provisions relating to the areas, and councils of those areas, established or altered by this clause.
5
Matters or things to be determined by Minister
5 Matters or things to be determined by Minister
5 Matters or things to be determined by Minister
(1) For the purposes of giving effect to this Proclamation, the Minister may from time to time determine any matter or thing at the Minister’s discretion or if a council or an Administrator refers any matter or thing requiring determination to the Minister for that purpose.
(2) The Minister may determine any matter or thing that is required to be or may be the subject of an agreement between councils under this Proclamation if the councils fail to agree or the Minister is not satisfied with any agreement between the councils.
(3) Without limiting subclause (2), the Minister may determine a matter relating to the transfer of staff or the transfer of assets, rights and liabilities if the matter has not been agreed within the following periods:
(a) for a matter relating to the transfer of a member of staff—within 6 months after the amalgamation day,
(b) for any other matter—within the initial period.
(4) The Minister may delegate any function of the Minister under this clause to the Chief Executive.
(5) The Chief Executive may sub-delegate to any person any function delegated to the Chief Executive under this clause.
6
References to former areas and councils
6 References to former areas and councils
6 References to former areas and councils
(1) A reference in any Act or instrument to:
(a) a former council (other than an altered council), or to a predecessor of the former council, is taken to be a reference to the new council that has responsibility for those matters relating to the former council or predecessor council to which the Act or instrument relates, or
(b) a former area (other than an altered area), or a predecessor of the former area, is taken to be a reference to the parts of each new area that consist of the relevant part of the former area or the predecessor of the former area.
(2) A reference in any Act or instrument to:
(a) an altered council, or to a predecessor of the altered council, is taken to be a reference to the new council that has responsibility for those matters relating to the altered council or predecessor council to which the Act or instrument relates (but only insofar as it relates to the relevant part of the new council’s area), or
(b) the area of an altered council, or a predecessor of the altered area, is taken to be a reference to the part of the new area that consists of the part of the altered area so incorporated.
7
Powers under Act
7 Powers under Act
7 Powers under Act
(1) Nothing in this Proclamation limits the powers under the Act of a new council or any other person to take any action to change any matter specified by this Proclamation at any time after the initial period.
Note—
Examples of such changes might include changes to the method of election of mayors, changes to wards and changes to councillor numbers.
(2) Subclause (1) does not apply in respect of a matter specified in this Proclamation relating to rates for the 2016/2017 rating year.
(3) A public inquiry under Part 8 of Chapter 13 of the Act into a matter relating to a former council or the members or staff of a former council may be continued and completed as if the former council had not ceased to exist.
8
8
8 (Repealed)
9
Planning panels
9 Planning panels
9 Planning panels
(1) A person nominated as a member of a joint regional planning panel by a former council may continue to exercise and complete any function being exercised by that person as a member immediately before the amalgamation day.
(2) A function exercised under subclause (1) is taken to be exercised by the member as a nominee of the applicable new council.
(3) A person nominated as a member of a joint regional planning panel by a former council (other than an altered council) ceases to be a nominee of an applicable council and a member of the panel on the amalgamation day, except for the purpose of exercising a function under subclause (1).
former area, in relation to a new council, means a part of a former area or an altered area incorporated into the area of the council by this Proclamation.
former council, in relation to a new council, means a council of a former area partly incorporated into the area of the council by this Proclamation.
interim general manager means the person appointed by or under this Proclamation as an interim general manager of a new council.
Division 2
Governance
Division 2 Governance
Division 2 Governance
11
First election
11 First election
11 First election
(1) The date of the first election of the councillors of a new council is 9 September 2017.
(2) The election is taken to be an ordinary election of councillors for the purposes of the Act or the regulations (other than for the purposes of the application of provisions relating to the administration and holding of first elections for councils and first mayors for councils).
(3) Any contract, agreement or other arrangement entered into by a former council (other than an altered council) for the administration of an election for a former council is terminated by operation of this clause.
(4) Clause 37 (2) applies to the termination of a contract, agreement or other arrangement by operation of this clause.
12
Administrators for new councils
12 Administrators for new councils
12 Administrators for new councils
(1) If a person appointed as an Administrator of a new council declines the appointment or ceases to hold office under clause 13, the Minister may, by order published in the Gazette, appoint another person as Administrator of the council.
(2) The Minister may, by order published in the Gazette, appoint an additional person or persons as Administrators of a new council, if the Minister is of the opinion that it is necessary to do so for the purposes of facilitating the operations of the council.
(3) The Administrator of a new council has, during the initial period, the functions of the council and the mayor of the council. This subclause is subject to the provisions of this Proclamation and to any order appointing another Administrator.
(4) If an additional Administrator is appointed:
(a) each Administrator has the functions specified in the instrument of appointment, and
(b) the Minister may give directions for the purpose of resolving any issues that arise as a result of there being more than one administrator.
(5) The salary of an Administrator is to be determined by the Minister and paid from the funds of the new council.
(6) For the purposes of the Act, an Administrator does not, in that position, hold an office or a place of profit under the new council.
cl 12: Am 2016 (581), Sch 1.2 [2].
13
Vacation of office by Administrators
13 Vacation of office by Administrators
13 Vacation of office by Administrators
(1) The Minister may, by instrument in writing published in the Gazette, terminate an Administrator’s appointment at any time.
(2) An Administrator ceases to hold office:
(a) immediately before the end of the initial period, or
(b) if the Administrator’s appointment is earlier terminated by the Minister, or
(c) if the Administrator dies.
14
Interim general managers and deputy general managers
14 Interim general managers and deputy general managers
14 Interim general managers and deputy general managers
(1) If a person appointed as an interim general manager of a new council declines the appointment or the appointment is terminated or the office of interim general manager is vacated for any other reason, the Administrator of the new council may appoint another person as the interim general manager of the council.
(2) The Administrator of a new council may, at any time, terminate the appointment of an interim general manager or a deputy general manager appointed under this Proclamation. Any such termination is to be consistent with the terms of any applicable contract of employment for the interim general manager or deputy general manager.
(3) If a person appointed as an interim general manager was, immediately before the amalgamation day, the general manager of a council, the person has the same rights and entitlements as if the person were a senior staff member who was transferred to the new council under this Proclamation.
Note—
Under clause 406C of the Local Government (General) Regulation 2005, a transferred staff member is transferred under the same contract of employment (including term of the appointment) and retains accrued leave entitlements.
(4) If a person appointed as a deputy general manager was, immediately before the amalgamation day, the general manager of a council, the person has the same rights and entitlements (apart from the person’s position) as if the person were a senior staff member who was transferred to the new council under this Proclamation.
(5) Despite subclauses (3) and (4), the Administrator may vary (but not reduce) the remuneration that would otherwise be payable to the interim general manager or deputy general manager.
(6) The operation of this clause is not to be regarded as a breach of contract between a former council or the new council and a senior staff member (including a general manager).
(7) Nothing in this clause prevents:
(a) the extension of the term of appointment of an interim general manager or a deputy general manager, or
(b) the determination of a staff organisation structure for a new council that does not include the position of one or more deputy general managers.
(8) Section 336 (2) and (3) of the Act apply to a person appointed as an interim general manager.
15
Election of mayor following first election
15 Election of mayor following first election
15 Election of mayor following first election
The mayor of a new council is to be elected by councillors in accordance with the Act.
16
Wards and councillors of altered areas
16 Wards and councillors of altered areas
16 Wards and councillors of altered areas
(1) All wards in The Hills Shire area are abolished.
(2) All wards in the Hornsby area are abolished.
(2A) The area of The Hills Shire, as altered by this Proclamation, is to be divided into 4 wards having the boundaries shown for the area on the map with the identifier number PP5023-W kept in the register of public surveys on the commencement of the Local Government (City of Parramatta and Cumberland) Amendment Proclamation 2017.
(2B) The area of Hornsby, as altered by this Proclamation, is to be divided into 3 wards having the boundaries shown for the area on the map with the identifier number PP5024-W kept in the register of public surveys on the commencement of the Local Government (City of Parramatta and Cumberland) Amendment Proclamation 2017.
(2C) The division of the altered areas into wards by this clause does not apply in respect of any by-election to fill a casual vacancy in a civic office if the by-election is held before the date specified for the first ordinary election of the councillors for the altered council concerned after the commencement of this subclause.
(3) Nothing in this Proclamation operates to vacate, or otherwise affect, the holding of office by a councillor or mayor of an altered council.
cl 16: Am 2017 (8), cl 3.
Division 3
Council activities
Division 3 Council activities
Division 3 Council activities
17
Obligations of new councils
17 Obligations of new councils
17 Obligations of new councils
(1) A new council or an altered council is to use its best endeavours to facilitate the operation of this Proclamation, including sharing information, agreeing about required matters and working co-operatively with other councils.
(2) A new council or an altered council must make available to another council any records or other information in the possession of the new council or altered council and that relates to transferred members of staff, assets, rights or liabilities or any function of, or any part of the area of, the other council.
(3) Any such records or information that relates solely to transferred members of staff, assets, rights or liabilities or any function of, or any part of the area of, the other council is to be transferred by the new council or altered council as soon as practicable after the amalgamation day.
18
Activities of former councils
18 Activities of former councils
18 Activities of former councils
(1) Anything done or omitted to be done by a former council and having any force or effect immediately before the amalgamation day continues to have effect as if it had been done or omitted to be done by the new council.
(2) Without limiting subclause (1):
(a) any approval, order or notice given or made by a former council, and that had effect immediately before the amalgamation day, continues to have effect as if it had been given or made by the new council, and
(b) anything commenced but not completed by a former council may be completed or discontinued by the new council.
(3) Subclauses (1) and (2) do not apply to the extent to which any act, omission, approval, order, notice or anything commenced relates to:
(a) any part of the area of a former council or altered council that is not incorporated within the area of the new council by this Proclamation, or
(b) any asset, right or liability or member of staff not transferred to the new council under this Proclamation.
(4) This clause does not:
(a) limit any other provision of this Proclamation, or
(b) apply to the extent to which it is inconsistent with any other provision of this Proclamation.
19
Delegations
19 Delegations
19 Delegations
(1) A delegation by a former council that was in force immediately before the amalgamation day is taken to be a delegation by the new council and may be revoked or amended accordingly.
(2) A delegation by a former council to the general manager of that council that was in force immediately before the amalgamation day is taken to be a delegation by the new council to the interim general manager and may be revoked or amended accordingly.
(3) Nothing in this clause affects a delegation by an altered council that was in force immediately before the amalgamation day.
20
Codes, plans, strategies and policies
20 Codes, plans, strategies and policies
20 Codes, plans, strategies and policies
(1) The codes, plans, strategies and policies of the new council are to be, as far as practicable, a composite of the corresponding codes, plans, strategies and policies of each of the former councils (other than any altered council).
(2) This clause ceases to have effect in relation to a code, plan, strategy or policy when the new council adopts a code, plan, strategy or policy that replaces that code, plan, strategy or policy.
(3) This clause does not apply to the extent to which it is inconsistent with any other provision of this Proclamation.
cl 20: Am 2016 (581), Sch 1.2 [3].
21
Code of conduct and meeting code
21 Code of conduct and meeting code
21 Code of conduct and meeting code
(1) The code of conduct for a new council is to be the model code (within the meaning of section 440 of the Act) until a code of conduct is adopted by the council in accordance with the Act.
(2) The procedure for dealing with alleged contraventions of the code of conduct is to be the model procedure (within the meaning of section 440AA of the Act) until a procedure is adopted by the new council in accordance with the Act.
(3) Any provision of a code of meeting practice applied to a new council by this Proclamation that restricts the holding of meetings to places in a former area applies so that the restriction relates to places in the new area.
cl 21: Am 2016 (581), Sch 1.2 [4].
22
Development control plans and contributions plans
22 Development control plans and contributions plans
22 Development control plans and contributions plans
(1) A development control plan or contributions plan that applied to a former area immediately before the amalgamation day continues to apply to that part of the area of the new council that consists of the former area.
(2) This clause ceases to have effect when the development control plan or contributions plan is repealed.
(3) To avoid doubt, nothing in this clause prevents the new council or an altered council from amending a development control plan or contributions plan.
(4) A new council or altered council is to consult with the other council before amending the development control plan or contributions plan.
23
Contributions plans
23 Contributions plans
23 Contributions plans
(1) If a contributions plan continued in force by this Proclamation also continues to apply to land in another new area or altered area, the contributions plan is taken to be a plan approved by the councils of each of the areas.
(2) A condition imposed under section 94 or 94A of the Environmental Planning and Assessment Act 1979, and in force immediately before the amalgamation day, that requires a monetary contribution to be paid wholly or partly for the benefit of an area that consists of land within the new area and land within another new area or altered area is taken to be a condition referred to in section 94C (1) of that Act and, if there is no joint contributions plan, is to be apportioned in accordance with an agreement between the relevant councils.
cl 23: Am 2016 (581), Sch 1.2 [5].
24
Strategic planning
24 Strategic planning
24 Strategic planning
(1) The day by which a new council must have an operational plan is 1 August 2016.
(2) The day by which a new council must review its community strategic plan, following the first election for the council, is 1 July 2018.
(3) The day by which a new council must establish a new delivery program, following the first election for the council, is 1 July 2018.
(4) The delivery program is to be for the period commencing on 1 July 2018 and ending on 30 June 2021.
25
Payment of outstanding rates, charges and fees
25 Payment of outstanding rates, charges and fees
25 Payment of outstanding rates, charges and fees
Any rates, annual charges or other fees payable to a former council in respect of any land in the area of a new council, that were not paid before the amalgamation day or for which payment is due after that day, are payable to the new council.
26
Authorisation of expenditure pending operational plan
26 Authorisation of expenditure pending operational plan
26 Authorisation of expenditure pending operational plan
A new council may hold a meeting for the purposes of approving expenditure and voting money for the period from 1 July 2016 until the adoption by the council of the first operational plan for the council.
27
Rating structure and categorisation of land for rating purposes
27 Rating structure and categorisation of land for rating purposes
27 Rating structure and categorisation of land for rating purposes
(1) This clause applies to the levying of rates for the 2016/2017 rating year.
(2) The structure for rates applied by a council to rates levied for a parcel of land in a former area for the 2015/2016 rating year is to be applied by the new council to that parcel.
(3) The category or sub-category applied to a parcel of land in a former area for rating purposes for the 2015/2016 rating year is to be applied by the new council to that parcel.
(4) It does not matter that different rating structures apply to different parcels because of subclause (2).
(5) This clause does not prevent a person from applying for a review of a category under section 525 of the Act or from making an appeal under section 526 of the Act.
(6) The rating structure is to be reviewed within the first term of the new council following the first election of the council.
28
Calculation of notional general income for rating purposes
28 Calculation of notional general income for rating purposes
28 Calculation of notional general income for rating purposes
(1) The new council’s notional general income for 2016/2017 is to be determined by adding together the amount of general income that would be attributable to the part of each former area included in the new area, if the general income for the former area had been determined as if the amalgamation or alteration of boundaries effected by this Proclamation had not taken place.
(2) Any variation of a former council’s notional general income under Part 2 of Chapter 15 of the Act that would have been applicable, had an amalgamation or alteration of boundaries effected by this Proclamation not taken place, to the determination of the amount of rates and charges for land within the area of a new council during a particular period continues to apply to the determination of rates and charges in respect of that land.
cl 28: Am 2016 (662), Sch 1.2.
29
Reports and reviews
29 Reports and reviews
29 Reports and reviews
(1) A new council is to prepare audited financial reports for the former councils (other than any altered councils), in respect of the period from 1 July 2015 to the end of the day on which this Proclamation was published on the NSW legislation website, on or before 31 December 2016.
(2) The new councils are to determine by agreement which council is to prepare the audited financial reports in relation to each of the former councils (other than any altered councils).
(3) The first annual report (including the audited financial reports) of a new council is to relate to the period commencing at the beginning of the day after the day on which this Proclamation was published on the NSW legislation website and ending on 30 June 2017.
(3A) Financial reports and audits of financial reports may be prepared for the periods specified in this clause despite any requirements of the Act relating to them.
(4) For the purposes of the preparation of the first annual report (including the audited financial reports) of a new council, the Act and the regulations apply as if a reference to a year were a reference to the period referred to in subclause (3).
(5) Any report or review that is required to be carried out by a new council, and that relates to a period before the amalgamation day, may be carried out by reference to the former areas, as the case requires.
cl 29: Am 2016 (581), Sch 1.2 [6]–[8].
30
Auditor of council
30 Auditor of council
30 Auditor of council
(1) The auditor of a new council is to be determined by the council and is to be a person who provided auditing services to one or more of the former councils immediately before the amalgamation day.
(2) Any contract, agreement or other arrangement made by a former council (other than an altered council) with any other person to provide auditing services is terminated by operation of this clause.
(3) Clause 37 (2) applies to the termination of a contract, agreement or other arrangement by operation of this clause.
Division 4
Staff of councils
Division 4 Staff of councils
Division 4 Staff of councils
31
Organisation structure
31 Organisation structure
31 Organisation structure
The initial organisation structure of a new council is, as far as practicable, to be a composite of the organisation structures of each of the former councils that is not an altered council.
32
Transfer of senior staff
32 Transfer of senior staff
32 Transfer of senior staff
(1) Any position that, immediately before the amalgamation day, was a senior staff position of a former council is taken to be a senior position of one of the new councils, as determined by agreement between the new councils, in accordance with that agreement.
(2) A person who held any such senior staff position immediately before the amalgamation day is taken to be the holder of that position in the organisation structure of the new council for which it is taken to be a senior staff position.
(3) A person who holds a position by operation of subclauses (1) and (2) (or as determined by the Minister under clause 5) is taken to have held the position on and from the amalgamation day.
(4) This clause does not apply to the senior staff of an altered council or a person appointed as an interim general manager or deputy general manager under this Proclamation.
(5) This clause is subject to any determination of an organisation structure by the new council.
33
Transfer of other staff
33 Transfer of other staff
33 Transfer of other staff
(1) Each member of staff (other than senior staff) of a former council (other than an altered council) immediately before the amalgamation day is transferred to one of the new councils, as determined by agreement between the new councils, in accordance with that agreement.
Note—
Part 6 of Chapter 11 of the Act contains provisions relating to transferred non-senior staff.
(2) A transfer under subclause (1) (or as determined by the Minister under clause 5 of this Proclamation) is taken to have effect on and from the amalgamation day.
34
Staff arrangements pending agreement or determination
34 Staff arrangements pending agreement or determination
34 Staff arrangements pending agreement or determination
(1) This clause applies until an agreement is reached under clause 32 or 33 or a determination is made under clause 5 in relation to the transfer of members of staff.
(2) The City of Parramatta Council is, pending that agreement or determination, to exercise the functions of the employer of all of the members of staff of the former City of Parramatta Council.
(3) The Cumberland Council is, pending that agreement or determination, to exercise the functions of the employer of all of the members of staff of the former Auburn City Council and Holroyd City Council.
35
Transfer of staff of altered councils
35 Transfer of staff of altered councils
35 Transfer of staff of altered councils
(1) An altered council and a new council may agree to the transfer of staff from the altered council to the new council as a consequence of a boundary alteration effected by this Proclamation.
(2) The staff are transferred to the new council in accordance with that agreement.
(3) A transfer under subclause (2) (or as determined by the Minister under clause 5 of this Proclamation) is taken to have effect on and from the amalgamation day.
Division 5
Transfer of assets, rights and liabilities
Division 5 Transfer of assets, rights and liabilities
Division 5 Transfer of assets, rights and liabilities
36
Transfer of assets, rights and liabilities
36 Transfer of assets, rights and liabilities
36 Transfer of assets, rights and liabilities
(1) The fixed assets and any associated rights and liabilities of a former council that are located in the area of a new council are transferred to the new council.
(2) The other assets, rights and liabilities of the former councils (other than any altered councils), that are determined by agreement between the new councils, are transferred to the new councils, in accordance with that agreement.
(3) Any specified assets, rights and liabilities of a former council that is an altered council that are agreed between the altered council and a new council to be transferred to the new council are transferred in accordance with that agreement.
(4) A transfer under subclause (2) or (3) (or as determined by the Minister under clause 5) is taken to have effect on and from the amalgamation day.
37
Provisions relating to transfers of assets, rights and liabilities
37 Provisions relating to transfers of assets, rights and liabilities
37 Provisions relating to transfers of assets, rights and liabilities
(1) When any assets, rights or liabilities are transferred pursuant to this Proclamation from a former council to a new council, the following provisions have effect:
(a) the assets of the former council vest in the new council by virtue of this clause and without the need for any further conveyance, transfer, assignment or assurance,
(b) the rights or liabilities of the former council become, by virtue of this clause, the rights or liabilities of the new council,
(c) (Repealed)
(d) any act, matter or thing done or omitted to be done in relation to the assets, rights or liabilities before the transfer by, to or in respect of the former council or a predecessor of the former council is (to the extent to which that act, matter or thing has any force or effect) taken to have been done or omitted by, to or in respect of the new council,
(e) the new council has all the entitlements and obligations of the former council in relation to those assets, rights and liabilities that the former council would have had but for the transfer, whether or not those entitlements and obligations were actual or potential at the time of the transfer.
Note—
Clause 6 translates references in any instrument to former or altered councils or areas and their predecessors.
(2) The operation of this clause is not to be regarded:
(a) as a breach of contract or confidence or otherwise as a civil wrong, or
(b) as a breach of any contractual provision prohibiting, restricting or regulating the assignment or transfer of assets, rights or liabilities, or
(c) as giving rise to any remedy by a party to an instrument, or as causing or permitting the termination of any instrument, because of a change in the beneficial or legal ownership of any asset, right or liability, or
(d) as an event of default under any contract or other instrument.
(3) The Minister may, by notice in writing, confirm a transfer of particular assets, rights or liabilities. The notice is conclusive evidence of that transfer.
(4) No attornment to the transferee by a lessee from the former council is required.
cl 37: Am 2016 (581), Sch 1.2 [9].
38
Continuation or institution of proceedings by or against new councils
38 Continuation or institution of proceedings by or against new councils
38 Continuation or institution of proceedings by or against new councils
(1) Proceedings that were instituted by or against a former council before its dissolution, or that could have been instituted by or against a former council but for its dissolution, may be continued or instituted by or against the new council.
(2) For that purpose:
(a) proceedings instituted by or against the former council are taken to be proceedings instituted by or against the new council, and
(b) anything done by or in relation to the former council is taken to have been done by or in relation to the new council.
(3) If there are 2 or more new councils in relation to a former council (because the area of the former council is transferred to the areas of different councils):
(a) in the case of proceedings that relate to matters arising out of or connected with particular assets of the former council—the new council for the purposes of this clause is the new council to which those assets are transferred under this Proclamation, or
(b) in the case of proceedings that relate to other matters—the new council for the purposes of this clause is the new council to which responsibility for the matter is transferred under this Proclamation.
(4) In this clause:
proceedings means criminal proceedings, civil proceedings, civil penalty proceedings or other legal proceedings (including the issue of penalty notices for alleged offences and proceedings arising out of the issue of any such penalty notice).
cl 38: Ins 2016 (581), Sch 1.2 [10].
Schedule 1
Provisions for City of Parramatta Council
Schedule 1 Provisions for City of Parramatta Council
Schedule 1 Provisions for City of Parramatta Council
Schedule 2
Provisions for Cumberland Council
Schedule 2 Provisions for Cumberland Council
Schedule 2 Provisions for Cumberland Council
Source text: opening excerpt
Sourced from legislation.nsw.gov.au, CC BY 4.0.
Part 1 General
Part 1 General
Part 1 General
1 Name of Proclamation
1 Name of Proclamation
1 Name of Proclamation
This Proclamation is the Local Government (City of Parramatta and Cumberland) Proclamation 2016.
2 Commencement
2 Commencement
2 Commencement
This Proclamation commences on the day and at the time on which it is published on the NSW legislation website.
3 Definitions
3 Definitions
3 Definitions
(1) In this Proclamation:
altered area means an area the boundaries of which are altered by this Proclamation (other than an area amalgamated by this Proclamation).
altered council means the council of an altered area.
amalgamation day means the time of the day on which this Proclamation commences.
assets means any legal or equitable estate or interest (whether present or future, whether vested or contingent and whether personal or assignable) in real or personal property of any description (including money), and includes securities, choses in action and documents.
Chief Executive means the Chief Executive of the Office of Local Government.
fixed asset of a council means:
(a) land, whether built on or not, or
(b) a building of any description or any part of it and appurtenances to it, or
(c) plant, equipment or any other thing that is located only at one place.
former area means an area amalgamated by this Proclamation and includes any part of an altered area incorporated in a new area by this Proclamation.
former council means the council of a former area and includes, in relation to any part of an altered area incorporated in a new area by this Proclamation, the council of that altered area.
initial period means the period commencing on the amalgamation day and ending immediately before the first meeting of the new council held after the first council elections for the council.
liabilities means any liabilities, debts or obligations (whether present or future, whether vested or contingent and whether personal or assignable).
new area means an area constituted by this Proclamation.
Main concepts
The Proclamation rests on a set of discrete transitional concepts that define scope and legal effect.
Amalgamation day and initial period. The amalgamation day is the time when the Proclamation commences, being publication on the NSW legislation website (clause 2; cl 3 definitions). The initial period runs from the amalgamation day until immediately before the first meeting of the new council after its first elections (cl 3 definitions). The Administrator’s delegated authority covers that initial period (clause 12(3)).
Altered areas, former areas and new areas. The Proclamation distinguishes altered areas (boundaries altered but the council not amalgamated), former areas (areas amalgamated) and new areas constituted by the Proclamation (clause 3 definitions; clause 4(1) Table). Clause 6 translates references in other legislation and instruments to former or altered councils or areas into references to the relevant new council or part of the new council (clause 6(1) and (2)).
Transfer and vesting mechanisms. Fixed assets located in the area of a new council vest in that council (clause 36(1); clause 37(1)(a)). Other assets, rights and liabilities are transferred by agreement or, failing agreement, by Ministerial determination (clauses 36(2)-(3); clause 5). Clause 37 sets the legal consequences of transfer: vesting without further conveyance, transformation of rights and liabilities to the new council, and treatment of past acts as having been done by the new council (clause 37(1)(a),(b),(d),(e)). Clause 37(2) expressly states that the operation of that clause is not to be regarded as a breach of contract, confidence or other civil wrong, or as giving rise to remedies or termination rights caused by change of beneficial or legal ownership (clause 37(2)(a)-(d)).
Staff transfer. Senior staff positions are taken to be senior positions of the new council as determined by agreement, with incumbents taken to be holders from the amalgamation day (clause 32(1)-(3)). Non-senior staff are similarly transferred by agreement (clause 33(1)-(2)). Interim arrangements are provided where agreement is pending (clause 34).
Governance defaults and delegations. An Administrator exercises the functions of the council and mayor during the initial period (clause 12(3)); the code of conduct defaults to the model code until replaced by the new council (clause 21(1)-(2)). Delegations in force immediately before amalgamation are taken to be delegations by the new council (clause 19).
Planning and rating continuity. Development control plans and contributions plans that applied immediately before continue to apply to the relevant parts of the new council area until repealed or amended (clause 22). For the 2016/2017 rating year, the rating structure and category applied in 2015/2016 to a parcel continues to apply (clause 27); notional general income for a new council is the sum of the amounts that would have been attributable to the constituent parts had amalgamation not occurred (clause 28).
Ministerial determination. Clause 5 gives the Minister broad discretion to determine any matter required to give effect to the Proclamation, to resolve failed agreements between councils, and to determine staff or asset transfer matters not agreed within specified timeframes (clause 5(1)-(3)). The Minister may delegate to the Chief Executive and permit sub-delegation (clause 5(4)-(5)).
These concepts interact to produce immediate legal effect (vesting and deemed transfers operate with effect on the amalgamation day, clauses 32(3), 33(2), 36(4), 37(1)(a)) and to impose short transitional timelines for council operational and reporting responsibilities (clauses 24, 29).
Who it affects
The Proclamation affects a tightly defined set of public and private actors; the legal mechanics show who bears effects and who makes or executes decisions.
Former councils and their staff. The City of Auburn, City of Holroyd and City of Parramatta are amalgamated into the new City of Parramatta and Cumberland entities as specified (clause 4(1) Table). The councils of areas amalgamated are dissolved (clause 4(3)). Senior staff and non-senior staff of the former councils (other than altered councils) are transferred to new councils by agreement or determination and are deemed to hold the positions from the amalgamation day (clauses 32-34). Altered councils (affected by boundary adjustments) may agree to transfers of their staff to new councils (clause 35).
New councils. The City of Parramatta Council and the Cumberland Council are created as new legal entities with specified ward structures, councillor numbers and other attributes set in Schedules 1 and 2 (Schedules 1 and 2, clauses 2-7). New councils are tasked with producing operational plans, community strategic plan reviews and delivery programs within the statutory deadlines (clause 24). New councils receive rates, charges and fees previously payable to former councils in respect of land transferred into their areas (clause 25).
Administrators, interim general managers and deputy general managers. Administrators are appointed for each new council for the initial period (clause 12(3); Schedules 1 and 2, clause 4). The Administrator exercises council and mayoral functions during that period (clause 12(3)). The Proclamation names Amanda Chadwick as Administrator for Parramatta and Viv May as Administrator for Cumberland (Schedules 1 and 2, clause 4). Interim general managers are named (Greg Dyer for Parramatta; Merv Ismay for Cumberland) and a deputy general manager is named for Cumberland (Schedule 2, clauses 5-5).
Residents, landowners and ratepayers. Property owners and ratepayers in former areas that become part of new councils are subject to the rating structure applied in 2015/2016 for the 2016/2017 rating year (clause 27) and their rates payable to a former council become payable to the new council (clause 25). Development approvals, contributions conditions and planning controls that were in force continue to apply to the relevant parts of the new councils (clauses 22-23).
Contract counterparties and lessees. Contracts, agreements or arrangements for election administration or for auditing services entered into by former councils are terminated by operation of specified clauses (clause 11(3); clause 30(2)). Clause 37(2) seeks to limit the operation of contractual restrictions or remedies as a consequence of transfer (clause 37(2)(a)-(d)). Lessees are not required to attorn to the transferee (clause 37(4)).
Developers and planning participants. Planning panel nominees and development control instruments are affected. A person nominated to a joint regional planning panel by a former council may continue to complete functions in progress and is taken to be a nominee of the applicable new council for that purpose; other nominees cease to be nominees on the amalgamation day except while completing functions in progress (clause 9). Development control plans and contributions plans that applied before continue to apply to the relevant land and the new council is to consult with other councils before amending such plans (clause 22(1), (4)).
Auditors and financial service providers. The new council’s auditor must be a person who provided auditing services to one or more of the former councils immediately before the amalgamation day (clause 30(1)). Contracts for auditing services entered into by former councils are terminated by operation of clause 30(2).
Ministers and the Office of Local Government. The Minister gains the power to determine outstanding matters, to appoint and terminate Administrators and to delegate to the Chief Executive (clauses 5, 12, 13). The Chief Executive may sub-delegate functions delegated under clause 5 (clause 5(5)).
Who pays: Administrators’ salaries are to be determined by the Minister and paid from the funds of the new council (clause 12(5)). Rates, charges and fees payable in respect of land in the new area are payable to the new council (clause 25). These provisions allocate recurring revenue and immediate administrative costs to the newly constituted councils.
Key duties and rights
The Proclamation creates immediate duties for the new councils and rights or entitlements for various actors. These are obligations that must be discharged within defined timeframes and rights that are preserved or conferred by operation of the transitional provisions.
Duties of new councils and Administrators
Facilitate operation of the Proclamation, share information and cooperate with other councils (clause 17(1)). The new councils must "use their best endeavours" to make records and other information available when it relates to transferred members of staff, assets, rights or liabilities or any function or part of the area of another council (clause 17(2)-(3)).
Prepare an operational plan by 1 August 2016 (clause 24(1)). Review the community strategic plan and establish a delivery program after the first election with specified dates (clause 24(2)-(4)).
Prepare audited financial reports for the former councils for the period 1 July 2015 to the end of the day of publication of the Proclamation on or before 31 December 2016 (clause 29(1)). The first annual report of a new council is to relate to the period from the day after the Proclamation to 30 June 2017 (clause 29(3)).
Determine the new council’s notional general income for 2016/2017 by summing the amounts that would have been attributable to the constituent parts had amalgamation not taken place (clause 28(1)), and apply any variations that would have been applicable under Part 2 of Chapter 15 of the Act (clause 28(2)).
Continue applying development control plans and contributions plans to the corresponding parts of the new area until such plans are repealed, with a duty to consult before amending (clauses 22(1), 22(3)-(4)).
Maintain the codes and meeting practice: the model code of conduct applies until replaced (clause 21(1)-(2)), and prescribed meeting practice provisions that restrict meeting places to parts of former areas are converted to apply to the new area (clause 21(3)).
Rights and entitlements preserved or conferred
Vesting of assets and transfer of liabilities with effect on the amalgamation day (clauses 36-37). Fixed assets located within a new council area vest automatically (clause 36(1); clause 37(1)(a)). The new council acquires all entitlements and obligations of the former council in relation to transferred assets, rights and liabilities, whether actual or potential (clause 37(1)(e)).
Continuity and succession in proceedings. Proceedings instituted by or against former councils may be continued or instituted by or against the new council, with specific rules where former council assets and matters are split among new councils (clause 38(1)-(3)).
Delegations in force immediately before amalgamation are taken to be delegations by the new council and may be revoked or amended by the new council (clause 19(1)-(2)).
Staff rights. Senior and non-senior staff transferred under the Proclamation are taken to be transferred on the amalgamation day (clauses 32(3), 33(2)). If a person appointed as an interim general manager or deputy general manager was the general manager of a former council, they retain the same rights and entitlements as a transferred senior staff member (clause 14(3)-(4)). The Administrator may vary remuneration upwards but not reduce it (clause 14(5)).
Ministerial and administrative rights
The Minister may determine any matter necessary to give effect to the Proclamation or resolve disagreements between councils, and may delegate functions to the Chief Executive (clause 5(1)-(5)). For staff transfer matters, the Minister may determine matters not agreed within six months for staff transfers or within the initial period for other matters (clause 5(3)(a)-(b)).
Procedural rights and constraints
Rating review and appeal rights under the Act remain available: people may apply for a review of rating category under section 525 or appeal under section 526 of the Act (clause 27(5)).
The code of conduct and meeting procedure defaults may be replaced by the new council in accordance with the Act, so adoption procedures under the Act apply (clause 21(1)-(2)).
These duties and rights are largely transitional: several provisions continue only until the new council adopts replacement instruments or until particular statutory deadlines are met (clause 20(2); clause 21(1)-(2); clause 22(2)).
Penalties and enforcement
The Proclamation itself contains few express penalty provisions. Enforcement mechanisms and sanctions are largely left to the framework of the Local Government Act 1993 and other relevant statutes, as the Proclamation is a transitional statutory instrument intended to give effect to reorganisations. The text contains these enforcement- or consequence-oriented features:
Ministerial powers and termination of appointments. The Minister may terminate an Administrator’s appointment at any time by instrument in the Gazette (clause 13(1)-(2)). The Administrator may appoint or terminate interim general managers and deputy general managers subject to contractual terms (clause 14(1)-(2)). These are administrative instruments of control rather than criminal penalties.
Contract termination by operation. Certain contracts entered into by former councils are terminated by operation of the Proclamation. Contracts, agreements and arrangements for the administration of elections (clause 11(3)) and auditing services (clause 30(2)) are specifically terminated. Clause 37(2) attempts to mitigate the legal consequences that might otherwise flow from those changes by providing that the operation of clause 37 is not to be regarded as a breach of contract, confidence or other civil wrong, and does not give rise to remedies or termination events caused by a change in ownership (clause 37(2)(a)-(d)). That is an express statutory limitation on contractual remedies arising from transfer.
Continuation of proceedings. The Proclamation preserves the capacity to continue proceedings instituted by or against former councils and permits those proceedings to be continued or instituted by new councils (clause 38(1)-(3)). This is a procedural protection that ensures enforcement through ordinary courts and tribunal processes continues.
Delegation and revocation. Delegations taken to be delegations by the new council may be revoked or amended by the new council (clause 19(1)-(2)), enabling internal enforcement of governance through delegation control.
Statutory compliance duties. The Proclamation prescribes timeframes for strategic planning, operational plans and audited financial reports (clauses 24 and 29). Failure to prepare required reports or plans would engage the compliance and enforcement machinery of the Local Government Act and its regulators, though the Proclamation itself does not create new sanctions.
No new criminal offences. The text does not create new criminal offences or civil penalty regimes. Instead it rearranges rights, obligations and procedures and aligns continuity of legal entitlements and obligations to the new councils.
In short, enforcement of duties flowing from this Proclamation is primarily administrative and procedural, with the Local Government Act and existing judicial processes providing the mechanisms for remedy and enforcement. The Proclamation reduces the risk of contract-based remedies for third parties arising from transfers by operation of clause 37(2), while preserving the ability of claimants and regulators to continue litigation and to hold councils to account under existing laws (clause 38).
How it interacts with other laws
The Proclamation expressly cross-references and is confined by other Acts and instruments. Its transitional operations are designed to operate alongside and within the statutory architecture of the Local Government Act 1993 and related legislation.
Local Government Act 1993. The Proclamation repeatedly references the Act as the primary statutory framework governing local government powers, elections, codes and procedures. It preserves the operation of many Act provisions (for example, election timing and procedure, clauses 11(2), 15) while imposing transitional exceptions such as for rates for the 2016/2017 year (clause 7(2)). The Proclamation notes that the Act contains definitions and provisions affecting interpretation and application of the Proclamation (clause 3 note).
Environmental Planning and Assessment Act 1979. Planning instruments and panel arrangements are integrated with planning law. Definitions and continuing operation of development control plans, contributions plans and joint regional planning panel nominations are tied to the Environmental Planning and Assessment Act (clauses 9; clause 10 definitions; clauses 22-23). Conditions under sections 94 and 94A are treated so they may be apportioned between councils where plans apply to land in more than one new area (clause 23(1)-(2)).
Surveying and Spatial Information Act 2002. The spatial manifestation of the new areas and altered boundaries is by reference to the maps kept in the register of public surveys maintained under that Act, with map identifier numbers specified in the Table to clause 4 and Schedule maps referenced in Schedules 1 and 2 (clause 3 definition of register of public surveys; clause 4(1) and Table; Schedules 1 and 2, clauses 2 and 7).
Interpretation Act 1987. The Proclamation notes that the Interpretation Act affects interpretation and application (clause 3 note). That will govern how references, commencement, and other interpretive matters are read against the Proclamation.
Regulations and the Local Government (General) Regulation 2005. The Proclamation refers to the regulations made under the Act and to specific regulatory provisions applicable to transferred staff (clause 3 definition of the regulations; clause 14 note referencing clause 406C of the Local Government (General) Regulation 2005). Those regulations will determine detailed employment entitlements for staff transferred under the Proclamation.
Interaction with existing contracts and instruments. Clause 37 addresses direct legal interactions by deeming vesting of assets to occur without further conveyance (clause 37(1)(a)) and limiting contractual remedies and events of default that might otherwise arise because of the transfers (clause 37(2)). Clause 6 translates references in any Act or instrument to former or altered councils or areas to the appropriate new council or part of the new council (clause 6(1)-(2)), thereby maintaining the operation of laws and instruments that reference council entities.
Procedural and judicial instruments. Clause 7(3) permits the continuation of public inquiries under Part 8 of Chapter 13 of the Act into matters relating to former councils, indicating that investigative and enforcement processes under the Act continue unaffected (clause 7(3)).
Limits on Proclamation vs Act. Clause 7(1) preserves the ability under the Act of a new council or any other person to change matters specified by the Proclamation after the initial period, except for matters relating to rates for 2016/2017 (clause 7(1)-(2)). Thus, the Proclamation’s transitional settings are temporary and designed to mesh with ongoing statutory powers.
Practitioners must interpret transitional effects in light of both the Proclamation and the referenced Acts and regulations. The Proclamation’s express deeming and vesting provisions mean that, for many practical purposes, the new council steps into the shoes of the former council under other laws and instruments, with the limited statutory carve-outs identified in the text.
Amendment history
The Proclamation carries recorded amendment and insertion notations in the text which indicate post-enactment changes. The materials supplied include the following amendment notes:
Clause 8 was repealed by 2016 (581), Schedule 1.2 [1]. The text shows clause 8 marked "Repealed" with the citation (clause 8).
Clause 12 includes an amendment notation: "cl 12: Am 2016 (581), Sch 1.2 [2]". This indicates clause 12 was amended as part of instrument 2016 (581), Schedule 1.2 item [2].
Clause 20 includes an amendment note: "cl 20: Am 2016 (581), Sch 1.2 [3]". Clause 21 likewise carries "cl 21: Am 2016 (581), Sch 1.2 [4]". Clause 23 carries "cl 23: Am 2016 (581), Sch 1.2 [5]".
Clause 29 includes the amendment note "cl 29: Am 2016 (581), Sch 1.2 [6]-[8]". Clause 30 and numerous other clauses are likewise identified in the body as amended or inserted.
Clause 37 carries "cl 37: Am 2016 (581), Sch 1.2 [9]". Clause 38 was inserted ("cl 38: Ins 2016 (581), Sch 1.2 [10]"), showing it was added by instrument 2016 (581), Schedule 1.2 [10].
Clause 28 was amended by "Am 2016 (662), Sch 1.2", as shown by the note following clause 28.
Clause 16 was amended by the Local Government (City of Parramatta and Cumberland) Amendment Proclamation 2017 (2017 (8), cl 3), which inserted subclauses 2A, 2B and 2C concerning the division of the altered areas of The Hills Shire and Hornsby into specified wards and related transitional rules.
These amendment annotations indicate discrete changes to the Proclamation recorded in the instrument’s amendment history. The text does not contain the full amending instruments, only the citations and bracket references. Readers requiring the precise content of each amendment should consult the cited amending instruments and the consolidated legislative database for the Proclamation’s version history.
Litigation history
The text of the Proclamation provided contains no judicial decisions or case law applying or interpreting its provisions. It contains no references to litigation outcomes or examples of judicial review. Clause 38 expressly enables the continuation or institution of proceedings by or against new councils where proceedings were instituted by or against former councils, but it does not cite any litigation or provide examples (clause 38(1)-(2)). Because the Proclamation itself is a transitional statutory instrument, applications of its provisions to particular disputes would appear in litigation records external to the instrument. The instrument as given does not record any judicial consideration or litigation history. Practitioners should search court and tribunal databases for decisions dealing with this Proclamation if precedent or judicial interpretation is required for a particular legal question.
Gotchas
Several concrete transitional and practical traps arise from the text. These are not evaluative judgments; they are mechanically consequential features practitioners and administrators must manage.
Ministerial discretion and short deadlines. Clause 5 gives the Minister wide power to determine matters required to give effect to the Proclamation and to resolve failures by councils to agree (clause 5(1)-(3)). For staff transfers, the timeframe is 6 months after the amalgamation day for matters relating to the transfer of a member of staff (clause 5(3)(a)), and for "any other matter" within the initial period (clause 5(3)(b)). If councils fail to reach agreement before these deadlines, the Minister may impose determinations, which can produce outcomes not negotiated by stakeholders.
Retroactive effect on the amalgamation day. Transfers of staff, assets, rights and liabilities are taken to have effect on and from the amalgamation day (clauses 32(3), 33(2), 36(4)). That means legal status, liabilities and entitlements revert to the new council as of that day and can have practical consequences (payroll, property registration, insurance and risk allocation) that require retrospective administrative adjustments.
Vesting without conveyance, and contractual non‑reliance. Fixed assets vest by operation of clause 37(1)(a) without further conveyance, transfer or assignment (clause 37(1)(a)). Clause 37(2) limits the ability of parties to rely on contractual clauses that prohibit or penalise assignment or transfer, or that would treat transfer as an event of default (clause 37(2)(a)-(d)). That statutory override can frustrate expectations of third parties under contracts with former councils, and it may complicate financiers’ or counterparties’ security interests if those parties have not been addressed in the transfer process.
Contract termination by operation. Certain contracts are terminated automatically by the Proclamation. For example, contracts for election administration entered into by former councils are terminated by operation of clause 11(3) (clause 11(3)), and auditing contracts entered into by former councils are terminated by operation of clause 30(2) (clause 30(2)). The Proclamation contains no express transitional indemnities to compensate contractors for early termination, although clause 37(2) seeks to limit the capacity to claim remedies for change of ownership. Contractors should audit these clauses carefully.
Multiple rating regimes within a single council. For the 2016/2017 rating year new councils must apply the rating structure and category that was applied to each parcel in 2015/2016 (clauses 27(2)-(4)). The practical result is that parcels within the same new council may be subject to different rating structures and categorisations for that year, potentially complicating budgeting, rate notices and public communications. The rating structure is to be reviewed within the first term of the new council (clause 27(6)), but in-year billing and fairness questions may arise.
Tight reporting and audit deadlines. The Proclamation requires the new council to prepare audited financial reports for former councils for the 2015/2016 year for the period up to the Proclamation publication day and to have them on or before 31 December 2016 (clause 29(1)). The first annual report must cover the amended period to 30 June 2017 (clause 29(3)). Those deadlines are short and impose resource and coordination burdens, including choosing auditors that provided services to former councils (clause 30(1)).
Delegations and governance defaults. Delegations by former councils are taken to be delegations by the new council (clause 19(1)), and the Administrator exercises the functions of the council and mayor during the initial period (clause 12(3)). New councils may need to review, revoke or reconstitute delegations but must do so within limited time and under operational pressures. The code of conduct defaults to the model code until the new council adopts its own (clause 21(1)-(2)), meaning localised conduct rules and procedures are temporarily replaced.
Spatial and mapping reliance. Boundary descriptions depend on maps with specified identifiers kept in the register of public surveys (clause 4(1); clause 3 definition). Errors or uncertainties in accessing or interpreting those maps (identifiers such as PP5002, PP5003, PP5023-W, PP5024-W, PP5006-W, PP5007-W are given) could create disputes about which parcels fall into which new council.
Continuity limitations. Clause 18 preserves actions taken by former councils but expressly excludes matters relating to parts of former areas not incorporated into the new council, or assets, rights, liabilities or staff not transferred (clause 18(3)(a)-(b)). Parties must verify whether specific assets, approvals or staff were transferred or remain with an altered council; otherwise they may wrongly assume continuity.
Sub-delegation and administrative concentration. The Minister may delegate under clause 5 to the Chief Executive who may sub-delegate to any person (clause 5(4)-(5)). That creates layers of delegated decision-making which may complicate accountability and make it difficult for local stakeholders to know which official is responsible for a determination.
Each of these features creates administrative and legal workstreams that affected parties must manage to avoid unintended outcomes.
How to comply
This section translates the Proclamation’s discrete requirements into a practical compliance checklist for new councils, Administrators, interim managers, former council staff, contractors and private parties. Each point cites the controlling clause.
Operational and governance tasks
Confirm commencement and boundary maps. The Proclamation commences on publication on the NSW legislation website; confirm the exact amalgamation day and obtain the maps referenced by identifier numbers in clause 4 and Schedules 1 and 2 from the register of public surveys to determine which parcels and wards are affected (clause 2; clause 4(1); Schedules 1 and 2, clause 2 and 7).
Accept and resource Administrator functions. The Minister’s appointments are published in the Gazette and the Administrator exercises council and mayoral functions for the initial period (clause 12(1)-(4)). New councils must ensure Administrators have access to council records, office facilities and funds to discharge duties, and that administrators’ remuneration is paid from new council funds (clause 12(5)).
Finalise interim executive appointments and staff transfer arrangements. Where an interim general manager or deputy general manager is named in the Schedules, ensure employment contracts, remuneration arrangements and entitlements are documented and align with clause 14. If the appointed interim general manager or deputy general manager was previously a general manager, ensure their entitlements are managed as if they were transferred senior staff (clause 14(3)-(5)). For all senior and non-senior staff, agree transfers between new councils or, failing agreement, seek Minister determination in accordance with clause 5(3) within the specified timeframes (clauses 32-35; clause 5(3)). While agreements are negotiated, follow clause 34 which assigns employer functions for City of Parramatta staff and Cumberland employer functions pending agreement (clause 34(2)-(3)).
Financial and audit compliance
Appoint auditors and meet audit timetable. The new council must determine its auditor and must select a person who provided auditing services to one or more former councils immediately before amalgamation (clause 30(1)). Prepare the audited financial reports for former councils for the 2015/2016 period covering up to the amalgamation day and have them completed by 31 December 2016 (clause 29(1)). Coordinate auditors early because the pool of eligible auditors is limited by clause 30(1).
Prepare strategic documents and operational plans on time. The operational plan deadline is 1 August 2016 (clause 24(1)). After the first election, review community strategic plans and establish the delivery program by 1 July 2018 with the delivery program covering 1 July 2018 to 30 June 2021 (clause 24(2)-(4)). Integrate continuity obligations for development control plans and contributions plans when preparing strategic documents (clauses 22-23).
Calculate notional general income and apply transitional rating. For the 2016/2017 rating year apply the 2015/2016 rating structure and category to each parcel in the former areas incorporated into the new area (clause 27(2)-(3)). Determine the notional general income by summing the general income that would be attributable to each former area part as if amalgamation had not occurred (clause 28(1)). Apply any variations that would have been applicable under Part 2 of Chapter 15 of the Act (clause 28(2)). Note that ratings may vary across parcels for that year and plan communications and billing accordingly (clause 27(4)-(6)).
Records, information and planning instruments
Share and transfer records. New councils must make available to other councils any records or information relating to transferred members of staff, assets, rights or liabilities or functions of the other council and must transfer such records as soon as practicable where they relate solely to transferred matters (clause 17(1)-(3)). Ensure secure transfer of personnel files, contracts, land records and financial records.
Preserve planning instruments and consult before amendment. Development control plans and contributions plans that applied to former areas continue to apply to the corresponding part of the new area (clause 22(1)-(3)). New councils must consult with other councils before amending such plans (clause 22(4)). Where a contributions plan applies to land in more than one new area, treat it as approved by the councils of each area and ensure apportionment of s 94/s 94A monetary contributions is agreed (clause 23(1)-(2)).
Contracts and third-party dealings
Review contracts and communicate effects. Identify contracts terminated by operation (for example election administration agreements and auditing service contracts per clauses 11(3) and 30(2)). For other contracts, note clause 37(2) limits remedies arising from the transfer of assets and liabilities; nonetheless, communicate with contractors, financiers and counterparties to manage operational continuity and supply chains (clause 37(2)).
Manage leases and tenancies. Lessees are not required to attorn to transferees (clause 37(4)), but new councils should review lease arrangements, notify lessors and lessees of transfers and ensure land registry, insurance and tax records are updated where necessary.
Delegations and governance
Review delegations and codes. Delegations in force immediately before amalgamation operate as delegations by the new council and may be revoked or amended (clause 19(1)-(2)). The model code of conduct and model procedure apply until replaced by the new council (clause 21(1)-(2)), so councils should timetable adoption of localised codes and meeting practice to ensure governance clarity.
Prepare for first election and mayoral election. The date of the first election is specified as 9 September 2017 and is taken to be an ordinary election for Act purposes, with the mayor to be elected by councillors in accordance with the Act (clauses 11(1)-(2); clause 15). Terminate or novate election administration contracts as necessary (clause 11(3)).
Use of Ministerial determinations and delegations
Proactively resolve disputes or seek Ministerial determinations. Where councils cannot agree on transfer of staff, assets or other matters, either negotiate to a written agreement or refer the matter promptly to the Minister before the statutory deadlines identified in clause 5(3) become operative (clause 5). Prepare materials and position papers for Ministerial consideration and be prepared for determinations to be delegated to the Chief Executive and sub-delegated.
Practical administrative checklist
Assemble a transition team with legal, HR, finance and planning leads to coordinate staff transfers, asset registers, liabilities, contracts and records.
Obtain and reconcile asset and liability registers from former councils before and immediately after amalgamation, and map fixed assets to the relevant new council area (clause 36(1); clause 37(1)(a)).
Coordinate with auditors chosen under clause 30(1) to meet the audited financial report timetable (clause 29(1)).
Audit rating systems and billing systems to ensure the 2016/2017 rating structure is applied correctly to each parcel, and prepare a communication plan for ratepayers explaining transitional arrangements (clause 27).
Confirm mapping with the register of public surveys to ensure correct ward and boundary operation and identify any parcels where boundary ambiguity might affect service delivery (clause 4; Schedules 1 and 2, clause 7).
Document all agreements reached between new councils and retain records of negotiations in case Ministerial determination is sought (clause 5(2)).
If agreements are not likely, prepare a formal request for Ministerial determination including proposed staff transfer details, assets and liabilities allocation, and any drafts of deeds required to effect transfers operationally, noting the statutory timelines.
Adherence to these steps, with cross-reference to the controlling clauses cited above, will put Administrators, new councils, staff and counterparties in the position the Proclamation intends: operational continuity with statutory clarity about the timing and legal effect of transfers and transitional arrangements.
Section 5Matters or things to be determined by Minister
new council means the council of a new area constituted by section 219 of the Act.
register of public surveys means the register of that name kept under the Surveying and Spatial Information Act 2002.
rights means any rights, powers, privileges or immunities (whether present or future, whether vested or contingent and whether personal or assignable).
the Act means the Local Government Act 1993.
the regulations means regulations made under the Local Government Act 1993.
Note—
The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this Proclamation.
(2) Notes included in this Proclamation do not form part of this Proclamation.
4 Amalgamations and boundary alterations
4 Amalgamations and boundary alterations
4 Amalgamations and boundary alterations
(1) The areas specified in the Table to this subclause are amalgamated, and the boundaries of the other areas specified in this Table are altered, to constitute new areas when this Proclamation commences with:
(a) the names specified in the Table, and
(b) the boundaries shown for each new area on the maps kept in the register of public surveys on the amalgamation day and having the identifier numbers specified beside the new areas in the Table.
Table
| Column 1 | Column 2 | Column 3 | Column 4 |
| Areas amalgamated | Areas altered | New areas | Map identifier numbers |
| City of Auburn, City of Holroyd, City of Parramatta | The Hills Shire, Hornsby | City of Parramatta | PP5002 |
| Cumberland | PP5003 |
(2) The boundaries for the The Hills Shire area, and the Hornsby area, as altered by this Proclamation, are the boundaries shown on the maps kept in the register of public surveys on the amalgamation day and having the identifier numbers specified in the Table to this subclause:
(3) The councils of the areas amalgamated by this Proclamation are dissolved.
(4) Nothing in this Proclamation operates to abolish The Hills Shire Council or the Hornsby Shire Council.
(5) Schedules 1 and 2 contain provisions relating to the areas, and councils of those areas, established or altered by this clause.
5 Matters or things to be determined by Minister
5 Matters or things to be determined by Minister
5 Matters or things to be determined by Minister
(1) For the purposes of giving effect to this Proclamation, the Minister may from time to time determine any matter or thing at the Minister’s discretion or if a council or an Administrator refers any matter or thing requiring determination to the Minister for that purpose.
(2) The Minister may determine any matter or thing that is required to be or may be the subject of an agreement between councils under this Proclamation if the councils fail to agree or the Minister is not satisfied with any agreement between the councils.
(3) Without limiting subclause (2), the Minister may determine a matter relating to the transfer of staff or the transfer of assets, rights and liabilities if the matter has not been agreed within the following periods:
(a) for a matter relating to the transfer of a member of staff—within 6 months after the amalgamation day,
(b) for any other matter—within the initial period.
(4) The Minister may delegate any function of the Minister under this clause to the Chief Executive.
(5) The Chief Executive may sub-delegate to any person any function delegated to the Chief Executive under this clause.
6 References to former areas and councils
6 References to former areas and councils
6 References to former areas and councils
(1) A reference in any Act or instrument to:
(a) a former council (other than an altered council), or to a predecessor of the former council, is taken to be a reference to the new council that has responsibility for those matters relating to the former council or predecessor council to which the Act or instrument relates, or
(b) a former area (other than an altered area), or a predecessor of the former area, is taken to be a reference to the parts of each new area that consist of the relevant part of the former area or the predecessor of the former area.
(2) A reference in any Act or instrument to:
(a) an altered council, or to a predecessor of the altered council, is taken to be a reference to the new council that has responsibility for those matters relating to the altered council or predecessor council to which the Act or instrument relates (but only insofar as it relates to the relevant part of the new council’s area), or
(b) the area of an altered council, or a predecessor of the altered area, is taken to be a reference to the part of the new area that consists of the part of the altered area so incorporated.
7 Powers under Act
7 Powers under Act
7 Powers under Act
(1) Nothing in this Proclamation limits the powers under the Act of a new council or any other person to take any action to change any matter specified by this Proclamation at any time after the initial period.
Note—
Examples of such changes might include changes to the method of election of mayors, changes to wards and changes to councillor numbers.
(2) Subclause (1) does not apply in respect of a matter specified in this Proclamation relating to rates for the 2016/2017 rating year.
(3) A public inquiry under Part 8 of Chapter 13 of the Act into a matter relating to a former council or the members or staff of a former council may be continued and completed as if the former council had not ceased to exist.
8
8 (Repealed)
8
cl 8: Rep 2016 (581), Sch 1.2 [1].
9 Planning panels
9 Planning panels
9 Planning panels
(1) A person nominated as a member of a joint regional planning panel by a former council may continue to exercise and complete any function being exercised by that person as a member immediately before the amalgamation day.
(2) A function exercised under subclause (1) is taken to be exercised by the member as a nominee of the applicable new council.
(3) A person nominated as a member of a joint regional planning panel by a former council (other than an altered council) ceases to be a nominee of an applicable council and a member of the panel on the amalgamation day, except for the purpose of exercising a function under subclause (1).
(4) In this clause:
joint regional planning panel has the same meaning as in the Environmental Planning and Assessment Act 1979.
Part 2 Operations of councils
Part 2 Operations of councils
Part 2 Operations of councils
Division 1 Preliminary
Division 1 Preliminary
Division 1 Preliminary
10 Definitions
10 Definitions
10 Definitions
In this Part:
Administrator means a person who is appointed under this Proclamation as an Administrator of a new council during the initial period.
contributions plan has the same meaning as in Division 6 of Part 4 of the Environmental Planning and Assessment Act 1979.
deputy general manager means a person appointed by or under this Proclamation as a deputy general manager of a new council.
development control plan has the same meaning as in the Environmental Planning and Assessment Act 1979.
former area, in relation to a new council, means a part of a former area or an altered area incorporated into the area of the council by this Proclamation.
former council, in relation to a new council, means a council of a former area partly incorporated into the area of the council by this Proclamation.
interim general manager means the person appointed by or under this Proclamation as an interim general manager of a new council.
Division 2 Governance
Division 2 Governance
Division 2 Governance
11 First election
11 First election
11 First election
(1) The date of the first election of the councillors of a new council is 9 September 2017.
(2) The election is taken to be an ordinary election of councillors for the purposes of the Act or the regulations (other than for the purposes of the application of provisions relating to the administration and holding of first elections for councils and first mayors for councils).
(3) Any contract, agreement or other arrangement entered into by a former council (other than an altered council) for the administration of an election for a former council is terminated by operation of this clause.
(4) Clause 37 (2) applies to the termination of a contract, agreement or other arrangement by operation of this clause.
12 Administrators for new councils
12 Administrators for new councils
12 Administrators for new councils
(1) If a person appointed as an Administrator of a new council declines the appointment or ceases to hold office under clause 13, the Minister may, by order published in the Gazette, appoint another person as Administrator of the council.
(2) The Minister may, by order published in the Gazette, appoint an additional person or persons as Administrators of a new council, if the Minister is of the opinion that it is necessary to do so for the purposes of facilitating the operations of the council.
(3) The Administrator of a new council has, during the initial period, the functions of the council and the mayor of the council. This subclause is subject to the provisions of this Proclamation and to any order appointing another Administrator.
(4) If an additional Administrator is appointed:
(a) each Administrator has the functions specified in the instrument of appointment, and
(b) the Minister may give directions for the purpose of resolving any issues that arise as a result of there being more than one administrator.
(5) The salary of an Administrator is to be determined by the Minister and paid from the funds of the new council.
(6) For the purposes of the Act, an Administrator does not, in that position, hold an office or a place of profit under the new council.
cl 12: Am 2016 (581), Sch 1.2 [2].
13 Vacation of office by Administrators
13 Vacation of office by Administrators
13 Vacation of office by Administrators
(1) The Minister may, by instrument in writing published in the Gazette, terminate an Administrator’s appointment at any time.
(2) An Administrator ceases to hold office:
(a) immediately before the end of the initial period, or
(b) if the Administrator’s appointment is earlier terminated by the Minister, or
(c) if the Administrator dies.
14 Interim general managers and deputy general managers
14 Interim general managers and deputy general managers
14 Interim general managers and deputy general managers
(1) If a person appointed as an interim general manager of a new council declines the appointment or the appointment is terminated or the office of interim general manager is vacated for any other reason, the Administrator of the new council may appoint another person as the interim general manager of the council.
(2) The Administrator of a new council may, at any time, terminate the appointment of an interim general manager or a deputy general manager appointed under this Proclamation. Any such termination is to be consistent with the terms of any applicable contract of employment for the interim general manager or deputy general manager.
(3) If a person appointed as an interim general manager was, immediately before the amalgamation day, the general manager of a council, the person has the same rights and entitlements as if the person were a senior staff member who was transferred to the new council under this Proclamation.
Note—
Under clause 406C of the Local Government (General) Regulation 2005, a transferred staff member is transferred under the same contract of employment (including term of the appointment) and retains accrued leave entitlements.
(4) If a person appointed as a deputy general manager was, immediately before the amalgamation day, the general manager of a council, the person has the same rights and entitlements (apart from the person’s position) as if the person were a senior staff member who was transferred to the new council under this Proclamation.
(5) Despite subclauses (3) and (4), the Administrator may vary (but not reduce) the remuneration that would otherwise be payable to the interim general manager or deputy general manager.
(6) The operation of this clause is not to be regarded as a breach of contract between a former council or the new council and a senior staff member (including a general manager).
(7) Nothing in this clause prevents:
(a) the extension of the term of appointment of an interim general manager or a deputy general manager, or
(b) the determination of a staff organisation structure for a new council that does not include the position of one or more deputy general
This is an opening excerpt, not the complete document.