Local Authorities (Reserve Funds) Act 1942 (WA)

LOCAL AUTHORITIES (RESERVE

FUNDS).

6° AND 7° GEO. VI., No. XXVI.

No. 26 of 1942.

AN ACT to authorise the establishment and main-

tenance of reserve funds by certain local authorities.

[Assented to 23rd December, 1942.]

RE it enacted by the King's Most Excellent Majesty,

by and with the advice and consent of the Legis-

lative Council and Legislative Assembly of Western

Australia, in this present Parliament assembled, and by

the authority of the same, as follows:-

1.    This Act may be cited as the Local Authorities short title.

(Reserve Funds) Act, 1942.

2.    This Act shall be read in conjunction with the This Act to

Municipal Corporations Act, 1906-1941, and the Road obiheIrtadAersi.th

Districts Act, 1919-1941.

3. In this Act, unless the context requires other- Interpre- tation.

wise

"Local authority" means a municipal council or a

road board;

"Minister" means the Minister of the Crown for the time being and from time to time charged with the administration of the laws relating to local government;

No 26.] Local Authorities (Reserve Funds). [1942.

"The Local Government Act," when used in rela- tion to a municipal council as a local authority means the Municipal Corporations Act, 1906- 1941, and when used in relation to a road board as a local authority means the Road Districts Act, 1919-1941;

"The present war" means the war between His Majesty the King and Germany, Italy, and Japan existing at the date of the commencement of this Act.

Governor may

authorise local 4. Notwithstanding anything to the contrary con-

authority to tained in the Local Government Act of a local authority,establish reserve fund. but subject as hereinafter provided, the Governor may,

on the recommendation of the Minister by Order in Council, authorise any local authority to establish during the present war and to maintain a reserve fund for the purpose of accumulating therein any surplus of ordinary revenue of the local authority over expenditure at the end of each financial year of the local authority, and of applying the moneys in such reserve fund and any income or profit derived from the investment of moneys in such reserve fund in the carrying out after the cessation of the present war of works and undertakings, authorised by the Local Government Act of the local authority which the local authority may not be able conveniently to carry out during the present war :

Provided that authority to establish a reserve fund shall not be granted to a local authority under this section unless and until the Governor is satisfied that the accu- mulation of the surplus ordinary revenue of the local authority in a reserve fund for the purpose aforesaid is desirable and expedient in the interests of the local authority and also of the ratepayers of the local authority.

Governor may

require a	5. (1) Where pursuant to section four of this Act a
local auth-

ority to close	local authority has established a reserve fund, the
and wind up
a reserve	Governor may at any time during the present war, on
fund.	the recommendation of the Minister by notice in writing to the local authority, direct the local authority to close and wind up its said reserve fund within a time to be specified in such notice, or may direct the local authority

1942.] Local Authorities (Reserve Funds). [No 26.

not to pay any further surplus revenue into its said reserve fund after a date to be specified in such notice, and the local authority shall comply with such notice according to the requirements thereof.

(2) After the receipt of a notice directing the local authority to close and wind up its reserve fund it shall not be lawful for the local authority to pay any further moneys into its reserve fund, and within the time speci- fied in the notice the local authority shall, according as the Minister may direct, either transfer the moneys then in the reserve fund and any income accruing from the investment thereof into its ordinary revenue account, or utilise the said moneys and income for any other purpose authorised by the Local Government Act of the local authority and approved by the Minister.

6.    (1) Where pursuant to section four of this Act a Local may not

local authority has established a reserve fund, the local tuntorilir

authority shall not, without the consent of the Governor, wind	its
fund

at any time during the present war close and wind up without con-	sent of
such reserve fund.	Governor.
(2) Where the Governor consents to the reserve fund being closed and wound up the moneys therein and any income accruing from the investment of moneys in the reserve fund shall, according as the Minister may direct, either be transferred to the ordinary revenue account of the local authority or be utilised for any purpose author- ised by the Local Government Act of the local authority and approved by the Minister.

7.    The Governor may, either by the Order in Council Governor may

authorising the establishment of a reserve fund by a a'mmoitunttileof :iie ucrgaluuse which

local authority, or at any time and from time to time uptch;

while such reserve fund is being maintained by the local cricilyocamlaya

cincreccictsfica

authority by notice in writing to the local authority specify what amount or proportion of the annual surplus revenue of the local authority shall be paid into its reserve fund; and, where the Governor specifies that an amount or proportion less than the whole of such surplus revenue shall be paid into the reserve fund, it shall not be lawful for the local authority in any year to pay into the reserve fund an amount or proportion in excess of that specified by the Governor as aforesaid.

No 26.] Local Authorities (Reserve Funds). [1942.

Surplus

moneys to be 8. Where pursuant to section four of this Act a local

paid	into	d authority has established a reserve fund and until it is
reser	ve

drawals to be s	and with- closed and wound up in a manner authorised by this
approved by Act—
Minister.

(a)

the local authority shall each year when the amount of surplus ordinary revenue has been ascertained pay into the reserve fund such amount or such proportion thereof as may be specified by the Governor under section seven of this Act unless the Governor on the recom- mendation of the Minister shall in any year in special circumstances authorise the local authority to retain the amount of such surplus ordinary revenue or a specified part thereof in its ordinary revenue account ; and

(b)

the local authority shall not withdraw from the reserve fund any portion of the moneys therein unless and until it has submitted to the Minister in writing particulars of the purposes for which it is proposed to expend the moneys when withdrawn from the reserve fund, and the Minister approves of the money being so expended.

Moneys in

reserve fund 9.

Subject as hereinafter provided, a local authority may invest all or any part of the moneys from time to time in the reserve fund in any investments authorised by law for the investment of trust moneys :

may be

invested.

Provided that the said moneys shall be invested only in investments of a kind which can readily be converted into money at any time.

Local auth-

orities not	10.	Where pursuant to section four of this Act a local
to maintain

reserve fund	authority has established and during the present war
after the
Present war.	maintains a reserve fund, nothing in this Act shall be deemed to authorise the local authority to continue to maintain such reserve fund for longer than twelve months after the cessation of the present war, except for such further period as may be necessary to enable the local authority to close and wind up the reserve fund in accordance with directions to be given by the Minister and to realise the investments in which moneys in the reserve fund have been invested.

1942.] Local Authorities (Reserve Funds). [No 26.

11. While a local authority continues to maintain a reserve fund established by it under this Act, and not-	ority prohib-
Local auth-
ited from
raising loan
withstanding any provision of the Local Government Act	while itmaintains a
to the contrary, it shall not be lawful for the local	reserve fund.
authority to raise any loan in respect of any works or undertakings, except in so far as the moneys in the reserve fund or any investments representing the same are not sufficient to meet the whole of the expenditure which would be incurred in carrying out the proposed works or undertakings, in which case this section shall not prohibit the raising of a loan to meet the amount of the difference between the amount of the moneys in the reserve fund or the investments representing the same and the amount of the estimated cost of the proposed works and undertakings.

12.    When pursuant to section four of this Act a local reserve Lana

authority has established, and while it continues to main- inoLiito int

tain a reserve fund, and notwithstanding anything; to the easTim oual ten wpo ern

contrary contained in the Local Government Act of the rating xnuer -

local authority, the local authority, when preparing its being	prepared,
annual estimates and statements for the purpose of determining and fixing the rate for the general rate of the local authority to be levied from time to time under its local Government Act may:

(a)	exclude from such estimates and statements the amount of the moneys then in the reserve fund or the amount of any investments for the time being representing the same ;
(b)	estimate the cost which would be incurred in carrying out during the ensuing year main- tenance and other works which might then be properly carried out but cannot owing to the present war conveniently be carried out, and include the amount of such cost as an item under the heading " Works Reserve Account" in the said annual estimates and statements; and
(c)	determine and fix the rate for the general rate aforesaid as if the reserve fund did not exist and there were no moneys therein and the amount stated under the heading "Works Reserve Account" aforesaid were proposed to be expended during the ensuing year.

No 26.] Local Authorities (Reserve Funds). [1942.

13. Except for such further period as may be reason- ably necessary to enable local authorities which have established reserve funds under the authority of this Act to close and wind up such reserve funds in accordance with directions to be given by the Minister, this Act shall continue in force and have effect only until the Governor General of the Commonwealth shall in accordance with the laws of the Commonwealth declare that the present war has ended, and no longer.

Duna °. o

this Ac