How Outdated Policies Undermine Municipal Governance

By Lorri Matthewson (Founder and Lead Consultant Matthewson & Co.)

www.smallplacesrock.com

Municipalities run on a combination of legislation, bylaws, policies, and day-to-day administrative practices.  In theory, these elements work together to create a transparent, consistent, and legally compliant system of local governance. In reality, many municipalities rely far more on practice than on policy—and often don’t realize that there could be consequences.

Across the municipal sector, it is common to find policies that are outdated, ignored, or so poorly maintained that they no longer reflect how the municipality actually operates. This gap between written policy and real practice is not just an administrative inconvenience; it is a governance problem that directly affects Council authority, organizational accountability, and legislative compliance.

The reality is that many of the smaller population communities operate without any policy at all. The work evolves constantly; new staff bring new ways and habits, technology impacts workflows, legislation is amended, council priorities shift, and emergencies force improvision. But the policy remains decades old, incomplete, illegal, and irrelevant.

That exposes the municipality to some serious risk.

Where there are no current, clear policies, staff must fall back on habit, preference, personal judgement, and dependence on what the last person did. Overtime, the policies gather dust while the real operating system of the municipality is largely based on practice that may or may not be compliant with the legislation.

The council’s authority is not unlimited in any province. It is defined by provincial and municipal legislation, bylaws, and policy. Council governs through direction, not through day-to-day management of the staff. Policies are one of the main tools allowing Council to set expectations, establish standards, delegate authority, and provide consistency across administration. When policies are outdated or ignored, Council loses its ability to govern effectively.

Administration fills the gap with informal practices when there is a lack of policy. Council cannot demonstrate due diligence, and public trust erodes. The Council’s authority only exists where it is written, approved, and implemented. Without the policy, Council authority becomes symbolic rather than functional. Service delivery becomes inconsistent, and eventually, may drift into legislative non-compliance.

A policy manual is a governance tool. It is a risk management tool. It serves as a communication device. It provides the foundation for administrative consistency, so it is important that it is current, clear, aligned with the legislation, and most importantly, used.

Policy IS governance. When polices are current, intentional, and aligned with the legislation, those polices become one of the most powerful tools the Council has to lead effectively.

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