2014-01-13 Deamalgamation Report Attachment

Attachment 5:   De-amalgamation Cost Procedure




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Attachment 5:     De-amalgamation Cost Procedure

     Sunshine Coast                         De-amalgamation Cost Procedure
     Council

     Background
     De-amalgamation costs are costs incurred during the implementation of the De-amalgamation which
     are to be paid by the new Noosa Shire Council.
     The basis for De-amalgamation costs is set out in the Local Government (De-amalgamation
     Implementation) Regulation 2013. Sections 35 to 37 provide as follows:-
            35 What are De-amalgamation costs
                 (1) The De-amalgamation costs of a new local government are -
                     (a) the fees and allowances of the transfer manager under section 14; and
                     (b) any civil liability that attaches to the State under section 17(2); and
                     (c) the remuneration and other costs associated with the employees made available
                     by the continuing local government to the transfer manager for the new local
                     government under section 20(2)(c); and
                     (a) the costs identified in the transfer methodology under section 20(2)(d) to be
                     payable by the new local government; and
                     (e) the costs decided by the transfer committee under section 27(c) to be payable by
                     the new local government; and
                     (f} the costs, if any, decided by the Minister under section 30 to be payable by the
                     new local government; and
                     (g) any civil lability that atlaches to the State under section 34/2).
                 (2) To remove any doubt, it is declared that De-amalgamation costs may be incurred on
                 any date, whether before or after the changeover day.

            36 Recovery of De-amalgamation costs

              «  (1)The De-amalgamation costs of a new local government are a debt payable by the new
                 local government.

              «  (2)The debt may be satisfied by the related continuing local government deducting the
                amount of the debt from the cash assets to be transferred from the related continuing
                local government to the new local government on the changeover day.
              e  (3)The De-amalgamation costs may be recovered from the new focal government by
                 action in a court of competent jurisdiction,
            37 Transfer of QTC working capital facility
             «   (1)This section applies if a QTC working capital facility has been established for the sole
                 purpose of facilitating the De-arnaigamation of a continuing local government.
             «   (2)The facility must be transferred from the continuing local government to the related
                 new local government on changeover day.
             «   (3)The new local government must discharge the facility by 31 December 2014.

             «   (4)in this section—

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