Australian Local Government Association

1. encourage the conduct of positive and productive relations between the three spheres of government in a spirit of respect with an emphasis on partnership and co-operation through the adherence to the broad based principles as outlined in Part III; and
2. provide an overarching framework as outlined in Part IV from which further agreements covering specific services and functions should be developed.

1. improved relationships between the three spheres of government by facilitating an open exchange of information and by encouraging greater co-operation;
2. the promotion of more effective and efficient government;
3. greater transparency in the financial arrangements between the three spheres of government in relation to local government services and functions;
4. effective consultation with local government, through local government peak representative bodies where appropriate, on the delivery of services and functions.

1. respect the right of local governing bodies to decide whether they will accept the responsibility for the delivery of a service or function on behalf of another sphere of government;
2. negotiate on service delivery standards, financial arrangements and implementation with the relevant local governing bodies, or the relevant peak local government representative body;
3. be responsible for developing their own programmes, where appropriate, including responsibility for programme design, determination of policy objectives, service delivery standards and funding;
4. where possible reach agreement with the relevant local governing bodies or peak local government representative body on the terms and conditions.

1. i) agree to the objectives, design, standards, and shared funding arrangements prior to the implementation of the service or function;
2. ii) where applicable, negotiate with the relevant local governing bodies, including the relevant peak local government representative body.

1. good fiscal management by working towards:
   1. prudent management of assets and liabilities;
   2. ensuring that revenue and spending decisions have regard to their effect on future generations and ongoing financial sustainability;
2. ensuring that its decisions on service delivery and the provision and maintenance of infrastructure are made with due regard to available, existing and anticipated future financial resources and competing priorities;
3. improving its practices including strategic planning at local and regional levels, prudent borrowing and appropriate pricing regimes;
4. being responsible for funding functions it chooses to undertake in an area of responsibility of other spheres of government, in addition to funding its existing core functions.

1. Outcomes
   1. The agreement should clearly state why an arrangement with local government is appropriate.
   2. The agreement should state the overall policy purpose of the service or function.
   3. Agreed outcome measures are presented and an explanation is provided of the fitness for purpose of those measures.
   4. Priority should be on demonstrated commitment to achieving outcomes rather than an input focus.
2. Roles and responsibilities
   1. The agreement should clearly define the responsibilities of each level of government.
   2. The type of arrangement under Part III should be explicitly stated within the agreement.
   3. Arrangements for recognising all involved parties in publicity and media releases should be specified.
3. Clear financial mechanisms
   1. Any agreement will be accompanied by a clear statement on financial arrangements and accountability obligations of the parties to the agreement.
   2. Agreements should provide predictability and stability, to enable forward planning to be undertaken by each sphere of government.
   3. Agreements should specify an expiration date for the end of the agreement and if appropriate, include clearly defined options for renegotiating or renewing the agreement, including sufficient notice period for this to occur.
4. Monitoring and evaluation
   1. Each agreement should specify how progress under the new agreement is to be monitored, evaluated and reported (including against performance indicators where appropriate).
5. Changes to Agreements
   1. If any signatory to an agreement proposes a change to that agreement, or a related document, the changes shall take effect from a date the parties to the agreement agree to, after the parties to the agreement have mutually agreed in writing to the changes.
6. Dispute resolution
   1. Each agreement shall include a dispute resolution procedure.

"local governing bodies" means local governing bodies eligible to be allocated funding under the Local Government (Financial Assistance) Act 1995 (Cth).

"non-regulatory means" refers to any method whereby the Commonwealth or a State or Territory seeks to have local government provide a service or function, other than by imposing a legislative or regulatory requirement specifically on local government.

"peak local government representative body" means the Australian Local Government Association or the associations recognised in the legislation of a State or Territory regulating local government as the peak local government representative body in that jurisdiction.

"services and functions" includes the provision of infrastructure, but does not include the provision of information and reporting to meet public governance requirements, an increase in community standards or the consequential impacts on local government of generally applicable legislation or policies.