171): Any City Council, Municipal Council or District Council of the States and in relation to the Federal Territory means the Commissioner of City of Kuala Lumpur appointed under Section 3 of Federal capital Act 1960 Formation and Administration Has a defined acts, a population, an organisation and the authority to undertake and power to carry out their functions. Sec 13 as a corporate body Sec 8 affairs of every L.A area will be administered by L.A Sec 9 state or federal territory may issue directions must consistent with Act Continued Sec 10 elaborate on the appointment, terms Sec 28 appointments of committees
National Council for Local Authority Article 95A of Federal Constitution requires the formation of a Council to control LA Duties to formulate national policy for the promotion, development and control of LA after consulting Federal & State government NCLG acts as an agency to ensure uniformity on policies & law matters
Continued Comprise of: Minister of Housing and Local Govt as chairman Representative from state Max of 10 from Federal Govt
Section 10 Councillors Councillors shall be appointed where majority are persons ordinarily of residents in the local area who: Have wide experience in local govt affairs Have achieved distinction in any profession, commerce or industry Capable of representing the interests of their communities in the local authority area Continued Term of office shall not exceed 3 years and eligible for reappointment upon the expires of his term of office The seat of a Councillor may be vacant due to: Resignation Disqualified under section 34(7) Appoinment is revoked by state authority Parent Laws There are 3: Local Government Act 1976 (Act 171) Town & Country Planning Act 1976 (Act 172) Street, drainage & Building Act 1974 (Act 133) Categories of major functions Environment cleaning, collection & disposal of solid waste, drainage & sewerage & beautification programmes Public Amenities abbatoirs, veterinary services, transportation burial ground & crematoria Public health cleansing sanitation, drainage, road & general upkeeping, licensing hawkers, public nuisance etc.
Functions of Local Authority Mandatory function all critical functions such as refuse collection, public health, streets lighting Discretionary function all development functions such as recreational parks, town beautification, housing and commercial. Loan (Sec 41) Raise loan from time to time by resolution and consent of State Authority Approval from state authority for purpose: 1. Pay expenses incurred to/ be incurred for Acquisition of land Contruction of building Execution of permanent work & provision of renewal for plant & vehicle
Continued 2. To pay off existing loans provided: - loan shall not make total debt of LA more than 5 times of annual value of valuation list - repayment period not more 60 years Sec 46 borrowing powers for special purpose Sec 47 loan by govt Sec 49 advances by way of overdraft Sources of Finance Section 39 the revenue of local authority consists of: All taxes, rates, rents, licence fees, dues and other charges Profits from any trade, service or undertakings All interests on any monies invested & all incomes arising from property Grants ( launching grant, annual grant, infrastructure grant), contributions, endowments & others Continued Section 41 power of LA to raise loan Section 46 borrowing powers for special purpose Section 47 loans from federal & state govt Section 48 loans to be first charge on revenue and assets Section 49 advances by way of overdraft Local Authority Fund Section 40 all moneys received by the local authority by virtue of this act or any written law shall constitute a fund known as the Local Authority Fund which becomes vested in and under the direction and control of the local authority. Shall be kept on current or deposit account with one or more banks & may be invested All orders or cheques against the Fund shall be signed by two officers authorised in writing by local authority.
Resource Allocation Section 55 Annual estimates Not later than 10 th day of November Copy of draft estimates deliver to each Councillor not later than 7 days before meeting LA may pass, modify, reject or add Forwarded to State Authority not later than 20 th
November and be considered by state not later than 31 December. Budget summary shall be published in the Gazette Section 56 Supplementary estimates Accounts and Audit Section 53 books and accounts shall be kept and open to inspection Section 54 financial year 12 months ending on 31 December of each year Annual statement shall be laid before the Local Authority not later than its first Ordinary meeting in the month of May The accounts shall contain information as required by the State Authority Statement of Revenue and Expenditure, Balance Sheet & other supporting statements. Section 60 Audit of Accounts Audit will be undertaken by the Auditor general or other auditor appointed by the State Authority on the recommendation of AG It is the duty of auditor to submit to Local Authority on or before 31 October in each year in respect of the preceding financial year of an annual observation on account and to certify: The accounts were in order Separate accounts of all commercial undertakings had been kept The accounts presented a true and fair view of the financial position of LA Provisions made for redemption and repayment of all monies borrowed by LA
Continued The amount set aside for depreciation & renewal of all assets were adequate All the requirements of the auditor had been complied with The audited accounts & auditors observations shall be laid before the LA and published in the Gazette A copy of the statements & accounts shall be forwarded to State Authority to be laid & tabled to State Authority to laid to the State Legislative Assembly & House of Rep.