South Australian Consolidated Acts South Australian Consolidated Acts48—Prudential requirements for certain activities
(1) A council must
obtain and consider a report that addresses the prudential issues set out in
subsection (2) before the council—
(a)
engages in a commercial project (including through a subsidiary or
participation in a joint venture, trust, partnership or other similar body)
where the expected recurrent or capital expenditure of the project exceeds an
amount set by the council for the purposes of this section; or
(b)
engages in any project (whether commercial or otherwise and including through
a subsidiary or participation in a joint venture, trust, partnership or other
similar body)—
(i)
where the expected expenditure of the council over the
ensuing five years is likely to exceed 20 per cent of the council's average
annual operating expenses over the previous five financial years (as shown in
the council's financial statements); or
(ii)
where the expected capital cost of the project over the
ensuing five years is likely to exceed $4 000 000.
(2) The following are
prudential issues for the purposes of subsection (1):
(a) the
relationship between the project and relevant strategic management plans;
(b) the
objectives of the Development Plan in the area where the project is to occur;
(c) the
expected contribution of the project to the economic development of the local
area, the impact that the project may have on businesses carried on in the
proximity and, if appropriate, how the project should be established in a way
that ensures fair competition in the market place;
(d) the
level of consultation with the local community, including contact with persons
who may be affected by the project and the representations that have been made
by them, and the means by which the community can influence or contribute to
the project or its outcomes;
(e) if
the project is intended to produce revenue, revenue projections and potential
financial risks;
(f) the
recurrent and whole-of-life costs associated with the project including any
costs arising out of proposed financial arrangements;
(g) the
financial viability of the project, and the short and longer term estimated
net effect of the project on the financial position of the council;
(h) any
risks associated with the project, and the steps that can be taken to manage,
reduce or eliminate those risks (including by the provision of periodic
reports to the chief executive officer and to the council);
(i)
the most appropriate mechanisms or arrangements for
carrying out the project.
(3) A report is not
required under subsection (1) in relation to—
(a) road
construction or maintenance; or
(b)
drainage works.
(4) A report under
subsection (1) must be prepared by a person whom the council reasonably
believes to be qualified to address the prudential issues set out in
subsection (2).
(5) A report under
subsection (1) must be available for public inspection at the principal
office of the council once the council has made a decision on the relevant
project (and may be available at an earlier time unless the council orders
that the report be kept confidential until that time).
(6) However, a council
may take steps to prevent the disclosure of specific information in order to
protect its commercial value or to avoid disclosing the financial affairs of a
person (other than the council).
(7) The provisions of
this section extend to subsidiaries as if a subsidiary were a council subject
to any modifications, exclusions or additions prescribed by the regulations.