Local Government Amendment Act 1994 (WA)

WESTERN AUSTRALIA

LOCAL GOVERNMENT AMENDMENT ACT 1994

No. 27 of 1994

AN ACT to amend the Local Government Act 1960 and to

make consequential amendments to the —

•	Health Act 1911;
•	Soil and Land Conservation Act 1945; and
•	Transfer and use of Funds (Shires of Harvey and Waroona) Act 1991.

[Assented to 23 June 1994.]

The Parliament of Western Australia enacts as follows:

Short title

1. This Act may be cited as the Local Government Amendment

Act 1994.

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Local Government Amendment Act 1994

Commencement

2. This Act comes, or is deemed to have come, into operation

on 1 July 1994.

Application of amendments to the financial year ending

30 June 1994

3. (1) Despite section 2, a council shall prepare the annual financial statement and report required by section 630 (1) of the principal Act as amended by this Act for the financial year ending on 30 June 1994.

(2) A council is not, by reason only of complying with subsection (1), to be taken to have contravened the principal Act as in force before 1 July 1994.

Principal Act

4. In this Act the Local Government Act 1960* is referred to as

the principal Act.

[* Reprinted as approved 24 June 1983.

For subsequent amendments see 1992 Index to Legislation of Western Australia, Table 1, pp. 122-5 and Acts Nos. 2, 6 and 17 of 1993.]

Section 6 amended

5. Section 6 (1) of the principal Act is amended by inserting, in

the appropriate alphabetical positions, the following

definitions —

"municipal fund" means the municipal fund established by a council under section 522;

"trust fund" means the trust fund established by a

council under section 522;

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Section 162 amended

6. Section 162 (3) of the principal Act is amended by deleting

"appropriate" and substituting the following —

municipal

Section 235 amended

7. Section 235 (3) of the principal Act is amended —

(a)	in paragraph (c), by deleting "a fund established" and substituting the following —

the trust fund of the council

"; and

(b)	in paragraph (d), by deleting "such a fund" and substituting the following —

the trust fund,

Section 273 amended

8. Section 273 (5) of the principal Act is amended —

(a)	by deleting "a particular fund" and substituting the following —

the municipal fund

;

(b)	by deleting "ten per centum of that fund" and substituting the following —

ten per cent of the revenue of the municipal

fund

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Local Government Amendment Act 1994

Section 457 amended

9. Section 457 (3) of the principal Act is amended by deleting

"an appropriate trust account" and substituting the following —

the trust fund

Section 505 amended

10. Section 505 of the principal Act is amended —

(a)	in subsection (1), by deleting "separately from its other accounts." and substituting the following —

within the municipal fund in such a manner as to be readily and separately identifiable for financial reporting purposes.

(b)

in subsection (2) —

(i)	in paragraph (c), by inserting after "fund" the following —

account

"; and

(ii) in paragraph (d), by deleting "find" in both places where it occurs and substituting in each place the following —

account

and

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the following subsection —

(3) A council shall apply the surplus remaining after compliance with subsection (2) —

(a) to the general operating revenue

of the municipality; or

(b) towards lowering the price or improving the quality of the service or commodity supplied by it.

Sections 506 and 507 repealed

11. Sections 506 and 507 of the principal Act are repealed.

Section 514 amended

12. Section 514 (6) of the principal Act is amended by inserting after "sinking fund" the following —

account

Section 522 amended

13. Section 522 of the principal Act is amended —

(a) in subsection (1) by deleting paragraphs (b), (c), (d)

and (e) and substituting the following —

and

(b) a trust fund.

and

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Local Government Amendment Act 1994

(b) by repealing subsections (2) and (3) and substituting

the following subsections —

The municipal fund of a council shall consist of all moneys and the value of all assets received or receivable by the council which are not required by this Act or any other written law to be held in the trust fund.

(2)

There shall be kept within the municipal fund of a council —

(3)

(a)	a trading account in respect of each trading or business undertaking;
(b)	a loan account in respect of each loan raised;
(c)	a reserve account for each reserve of money established by the council;
(d)	such special purpose accounts as are required for money which the council is obliged to use for a specific purpose;
(e)	such sinking fund accounts as the council is required to establish under Part XXVI;
(f)	such other accounts as are, in the opinion of the council, necessary to properly reflect the revenue, expenses, assets, liabilities and equity of the municipality; and

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(g) such other accounts as the Minister, from time to time, directs the council to establish.

(4)

The trust fluid of a council shall

consist of the moneys and the value of

assets referred to in section 526 (1).

(5)

The council shall keep the

municipal fund separate and distinct from

the trust fund.

The council shall open and operate a separate banking account for each of the 2 fluids and may open and operate as many additional banking accounts for those funds as the council considers are appropriate.

(6)

Section 523 amended

14. Section 523 of the principal Act is amended —

(a) in subsection (1) —

(i) by deleting ", being — " and substituting the following —

or the value of assets received or receivable by the council and includes —

(ii) in paragraph (p) by deleting "profits" in both places where it occurs and substituting in each place the following —

proceeds

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Local Government Amendment Act 1994

(iii) by deleting "and" at the end of paragraph (p);

(iv) in paragraph (q) by deleting "or a reserve fund." and substituting the following —

account of the municipal fund;

" and

(v) by inserting after paragraph (q) the following —

(r)	the proceeds from the sale or disposal of assets of a capital nature if those proceeds are lawfully capable of being appropriated to the general purposes of this Act; and
(s)	all other revenue and the value of assets not required to be held in the trust fund.

(b)	by repealing subsections (2) and (3) and substituting the following subsection —

<1.

(2) The ordinary revenue of a municipality shall be accounted for in the municipal fund in such accounts as are required to be kept under section 522 (3).

(c)	in subsection (4) by deleting "ordinary revenue of the council" and substituting the following —

operating revenue of the council

"; and

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s. 15

(d) by inserting after subsection (4) the following

subsection —

(5) In this section and in section 624 "operating revenue" means the ordinary revenue of the council excluding the proceeds from the sale or disposal of assets but including any profit on that sale or disposal.

Section 524 amended

15. Section 524 (2) of the principal Act is amended by deleting "If granted for a specific object the sum does not form part of the ordinary revenue of the council of the municipality, and" and substituting the following —

If the sum referred to in subsection (1) is granted for a specific object

Section 525 repealed and a section substituted

16. Section 525 of the principal Act is repealed and the

following section is substituted —

Trading accounts

525. (1) A trading account in respect of a trading

or business undertaking consists of —

(a)	money and the value of assets received or receivable in respect of the undertaking;
(b)	expenses and liabilities incurred in respect of the undertaking;

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Local Government Amendment Act 1994

(c)	money and the value of assets allocated within the municipal fund to make good a deficiency in the income of the trading undertaking; and
(d)	money and the value of assets directed or permitted by this Act to be allocated to the trading undertaking.

(2) A council is authorized to apply a trading account in a manner authorized by or under this or another Act for the application of the trading account.

Section 526 amended

17. Section 526 of the principal Act is amended

(a) by repealing subsection (1) and substituting the

following subsection —

(1) The trust fund established under section 522 (1) shall consist of —

(a)	all moneys and the value of assets that are required by this Act or any other written law to be held in that fund; and
(b)	any other moneys or the value of assets held in the custody of the council of a municipality on trust for the use or benefit of a person or body other than the municipality.

and

(b) by deleting subsection (2) (a).

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Section 527 amended

18. Section 527 of the principal Act is amended in subsections

(1), (2) and (3) by deleting "fund" wherever it occurs and

substituting in each place the following —

account

Section 528 amended

19. Section 528 of the principal Act is amended — (a) in subsection (1) —

(i) by deleting " "general reserve fund" means a fund" and substituting the following —

"general reserve account" means

an account

II;

(ii) by deleting " "particular reserve fund" means a fund" and substituting the following —

"particular reserve account"

means an account

and

(iii) by deleting the definition of "reserve fund" and substituting the following definition —

"reserve account" means a particular reserve account or a general reserve account;

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(b) by repealing subsection (3) and substituting the

following subsection —

(3) Subject to this section, a council may establish and maintain —

(a) one or more particular reserve accounts, each for the purpose of a particular undertaking; or

(b) a general reserve account.

(i) by deleting "fund" wherever it occurs in paragraphs (a) and (b) and substituting in each place the following —

;

account

(ii) by deleting "accounts" in paragraph (a) and substituting the following —

records

"; and

(iii) by deleting "funds" in paragraph (a) and substituting the following —

tit

accounts

(d) in subsection (5) —

(i) in paragraph (a) —

(I) by deleting "pay" and substituting the

following —

transfer

"; and

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(II) by deleting "fund or several particular reserve funds;" and substituting the following —

account or several particular

reserve accounts;

(ii) by deleting paragraph (b);

(iii) in paragraph (c) —

(I)	by deleting "pay" and substituting the following —

transfer

(II)	by deleting "fund" and substituting the following —

account

"; and

(III)

by deleting "revenue;" and substituting the

following —

1);

revenue.

and

(iv) by deleting paragraph (d);

(e) in subsection (6) —

(i) in paragraph (a), by deleting "pay that sum into such of its reserve funds," and substituting the following —

transfer that sum into such of its

reserve accounts,

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Local Government Amendment Act 1994

(ii) in paragraph (aa), by deleting "pay into a particular reserve fund" and substituting the following —

transfer into a particular reserve

account

and

(iii) in paragraph (c), by deleting "pay those sums into such of its reserve funds," and substituting the following —

transfer those sums into such of its

reserve accounts,

and

(f) in subsections (7), (8), (9), (10), (11) and (12), by deleting "fund" wherever it occurs and substituting the following —

account

Section 531AA amended

20. Section 531AA of the principal Act is amended —

(a)	by deleting "money from" and substituting the following —

money within

"; and

(b)	by inserting after "separate account" the following —

within the municipal fund

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Section 547 amended

21. Section 547 of the principal Act is amended —

(a)	by inserting after subsection (4) the following subsection —

(5) The Minister may from time to time give directions to be complied with by councils when determining the revenue to be taken into account for the purposes of subsection (4).

and

(b)	in subsection (7), by deleting "it may," and substituting the following —

it shall,

Section 603 amended

22. Section 603 (1) (b) of the principal Act is amended by

inserting after "sinking fund" the following —

account

Section 604 amended

23. Section 604 (1) of the principal Act is amended in paragraphs (a) and (b) by inserting after "sinking fluid" the following —

account

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Section 614 amended

24. Section 614 of the principal Act is amended —

(a)	in subsection (1), by inserting after "sinking fund" wherever it occurs the following —

account

"; and

(b)	in subsection (2) (i) in paragraph (a) —

(I) by deleting "receipts over payments" and

substituting the following —

revenue over expenses

"; and

(H) by inserting after "sinking fund" the

following —

account

(ii) in paragraph (b), by deleting "receipts over

payments" and substituting the following —

revenue over expenses

"; and

(iii) in paragraph (c) —

(I) by deleting "receipts over payments" and

substituting the following —

revenue over expenses

"; and

(II) in subparagraph

by deleting "from the

fund" and substituting the following —

from the account

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Section 615 amended

25. Section 615 of the principal Act is amended —

(a)	in subsections (1) and (2), by inserting after "sinking fund" wherever it occurs the following —

account

"; and

(b)

in subsection (3) —

(i)	by inserting after "sinking fund" the following —

account

"; and

(ii) by deleting "contributions to the fund," and substituting the following —

contributions to the account,

Section 616 amended

26. Section 616 (2) of the principal Act is amended in paragraphs (a) and (b) by inserting after "sinking fund" in both places where it occurs the following —

account

Section 617 amended

27. Section 617 of the principal Act is amended in subsections (1) and (3) by inserting after "sinking fund" in both places where it occurs the following —

account

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Section 618 amended

28. Section 618 (1) of the principal Act is amended by inserting

after "sinking fund" the following —

account

Section 622 amended

29. Section 622 of the principal Act is amended by inserting

after "sinking fund" the following —

account

Section 623 amended

30. Section 623 of the principal Act is amended by deleting "funds" and substituting the following —

fund accounts

Section 624 amended

31. Section 624 of the principal Act is amended —

(a)	by inserting after "sinking fund" wherever it occurs the following —

account

"; and

(b)	in paragraph (a) by deleting "thirdly, in payment of the balance, if any, then remaining into the municipal fund;" and substituting the following —

thirdly, if there is any balance remaining, in payment of that balance to the operating revenue of the municipality;

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Section 630 amended

32. Section 630 of the principal Act is amended by repealing

subsection (1) and substituting the following subsection —

(1) Each council shall prepare an annual financial statement and report in the form directed by the Minister.

Section 677A amended

33. Section 677A of the principal Act is amended by inserting

after subsection (1) the following subsection —

(la) Directions given under subsection (1) may —

(a)	adopt all or part of an accounting code or standard, whether as at a particular time or as amended from time to time;
(b)	adopt an accounting code or standard as amended by the directions.

Section 697 amended

34. Section 697 (2) (h) of the principal Act is amended by deleting "fund" in both places where it occurs and substituting in each place the following —

account

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Section 719 amended

35. Section 719 of the principal Act is amended by deleting

"fund" wherever it occurs and substituting in each place the

following —

account

Section 723 amended

36. Section 723 of the principal Act is amended in subsections

(3) and (6) by inserting after "sinking fund" in both places where

it occurs the following —

account

Twenty-Third Schedule amended

37. The Twenty-Third Schedule to the principal Act is amended

by deleting "sinking fund" and substituting the following —

sinking fund account

Twenty-Fourth Schedule amended

38. The Twenty-fourth Schedule to the principal Act is

amended by deleting "sinking fund" and substituting the

following —

sinking fund account

Transitional — funds

39. (1) On 1 July 1994 a council shall transfer to its municipal fund all the assets and liabilities of any trading fund, loan capital fund or reserve fund that was in existence under section 522 (1) of the principal Act (as in force immediately before then).

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On 1 July 1994 such assets and liabilities of any trust fund in existence immediately before then under section 522 (1) (c) of the principal Act (unamended by this Act) as are required by section 526 of the principal Act (as amended by this Act) to be held in the trust fund of a council are to be taken to be assets and liabilities of the trust fund referred to in section 522 (1) of the principal Act (as amended by this Act).

(2)

Any assets and liabilities not deemed by subsection (2) to be assets and liabilities of the trust fund referred to in section 522 (1) (b) of the principal Act (as amended by this Act) are to be transferred by the council to its municipal fund.

(3)

References to trading fund, loan capital fund or reserve fund in written laws

40. A reference in a written law to a trading fund, loan capital fund or reserve fund under section 522 of the principal Act as in force before 1 July 1994 is, unless the contrary intention appears, to be read as a reference to the municipal fund under section 522 of the principal Act as amended by this Act.

References to trust fund in written laws

41. A reference in a written law to a trust fund under section 522 or 526 of the principal Act is, unless the contrary intention appears, to be read as a reference to the trust fund under section 522 of the principal Act as read with section 526 of the principal Act as those sections are amended by this Act.

Consequential and minor amendments

42. The Acts referred to in Schedule 1 are amended in the

manner set out in that Schedule.

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SCHEDULE 1

[Section 42]

CONSEQUENTIAL AMENDMENTS

Short title of Act

Amendment

Health Act 1911

(1) In section 45 (a) delete "fund" and

substitute the following —

account

(2) In section 246F (4) (b) —

(a)	delete "fund" and substitute the following —

account

"; and

(b)	delete "Fund" and substitute the following —

Account

(3) In section 246F (6) delete "fund"

and substitute the following —

"account

2.	Soil and Land	In section 25B (6) (b) delete "fund under
Conservation Act	section 526" and substitute the
1945	following —
Ct account of the municipal fund

of the municipality under

section 522 (3) (d)

3.	Transfer and use	In section 4 (2) (a) delete "Fund" and
of Funds (Shires	substitute the following —
of Harvey and
a

Waroona) Act

Account