A dozen councils will begin their new term watched by municipal monitors or administrators after Victorians this month elect who will represent them in local government.
In Victoria’s west, Horsham City Council had a monitor appointed in August after it failed to have a budget in place by a legal deadline.
MAV president David Clark says municipal monitors are an observatory role not an interventionary one. (Supplied: Municipal Association of Victoria)
Meanwhile, Moira Shire was sacked in 2023 and declared ineligible to hold elections until 2028 after an inquiry found the murder of a staff member could have been prevented had the council provided a safe and healthy workplace.
So, what happens when a council is placed under observation, and what does it mean for residents if their council is affected?
What is a municipal monitor?
The state government chooses and appoints municipal monitors to councils to ensure good governance under the Local Government Act.
Municipal Association of Victoria president David Clark said the role of a monitor included observing how a council functioned, how it was controlled, the mechanisms of operating, and if necessary, helping it get back on track.
Monitors can be appointed because serious issues such as bullying have been reported at the council, if they’re requested by the mayor of chief executive, or if a council has returned from a period of administration.
Horsham Rural City Council has had a second monitor appointed in as many years. (ABC Wimmera: Philippe Perez)
A monitor provides a report to the local government minister in state parliament, who decides what happens next.
Monitors can also refer issues to the Victorian Auditor General, Victorian Ombudsman, Local Government Inspectorate, and the Independent Broad-based Anti-corruption Commission.
What does it mean for ratepayers?
One of the main impacts for ratepayers is cost.
The local council is expected to pay the cost of a municipal monitor, which means the cost will come back to ratepayers.
The local government minister decides how much the monitor will be paid.
Peter Stephenson, who was the municipal monitor for Strathbogie Shire Council in May 2023, was paid $1,259 per day during his three-month appointment.
He said he spent one to two days a week at the council during meetings, councillor briefings and training, with other correspondence done remotely via emails and video conferences.
In July 2022, municipal monitor Jude Holt was paid $65,000 by the Horsham Rural City Council for her six-month appointment.
The Victorian government said most monitors worked between two to three days a week on average across the term of their appointment.
They may also be eligible to claim reimbursements for out-of-pocket meals, travel and accommodation costs as there is no requirement to live in the local government area.
How do monitors differ from administrators?
Councils are placed under administration when they cannot function due to mismanagement or misconduct, or have failed to address issues raised by a previous monitor.
As the current Strathbogie Shire Council administrator, Mr Stephenson said his role was to perform the function of the council, rather than observe.
He was appointed after the council was dismissed in December 2023.
Peter Stephenson is the administrator, and former municipal monitor for Strathbogie Shire Council. (Supplied: Peter Stephenson)
Mr Stephenson likened the observatory role of a monitor to a “coach” who reviewed council’s governance, provided advice to the council, and reported their findings to the local government minister.
“An administrator is totally different in that it would make the decisions that council would normally do and engages with the community,” he said.
Are councils getting more dysfunctional?
Mr Stephenson said there was an element of “post-COVID, I’m-not-going-to-play-by-the-rules mentality” in local councils.
“Is there more poor governance? Maybe … probably,” he said.
He said the Victorian government was also intervening more than it had previously.
“What you are seeing is more willingness for the minister to intervene to nip things in the bud before they become major problems, which we might not have seen as much in the past,” he said.
Moira shire council was sacked for systemic cultural and governance issues. (ABC Shepparton: Rosa Ritchie)
Statistics reflect that trend.
During the term of local government that ran from 2016 to 2020, five councils had a municipal monitor or administrator appointed, compared to 15 in the most recent term.
But fewer councils were dismissed in the most recent term, suggesting earlier intervention by the minister could be working.
Only two of the 15 councils that had a monitor appointed this term were dismissed or suspended, compared to four of the five councils in the 2016 term.
Mr Stephenson said councillors were more willing to “call out” poor behaviour and intimidation, especially if they experienced it themselves, when previously they may have opted to keep issues “in-house”.
Strathbogie Council was suspended in December 2023 after relationships between councillors broke down. (Supplied: Strathbogie Shire Council)
Mr Stephenson also said attitudes towards women in councils continued to be a problem.
“There is a fair bit of misogyny out there still — it’s shocking to be honest … and that plays out in their interaction in the council chamber,” he said.
But Mr Clark didn’t think the number of monitors appointed necessarily reflected a level of dysfunction.
Victorian local government elections are conducted by postal ballot. (ABC Wimmera: Gillian Aeria)
He said many councillors who began their terms during the COVID-19 pandemic missed the opportunity to get to know each other, build working relationships, and familiarise themselves with how councils should operate.
“It’s made the councillor relationships much more difficult in this term of council than I’ve seen previously,” he said.
Eligible voters can vote for their local council until 6pm on October 25.
