South Austr a lia n L oc a l Gove r nme nt Gr a nts Commission - PowerPoint PPT Presentation

South Austr a lia n L oc a l Gove r nme nt Gr a nts Commission 2016 - 2017 Pr e se ntation to City of Bur nside

T he Commission - Me mbe r ship T he Cha ir, Mar y Pate tsos is a jo int no mine e o f the L o c a l Go ve rnme nt Asso c ia tio n a nd the Ministe r fo r L o c a l Go ve rnme nt Co mmissio ne r, Ror we n is a no mine e o f the Ministe r fo r y Mc E L o c a l Go ve rnme nt Co mmissio ne r, De puty Ma yo r L uke Hutc hison is a no mine e o f the L o c a l Go ve rnme nt Asso c ia tio n

T he Commission - Staff E xe c utive Offic e r, Pe te r Ile e , Se nio r Pro je c t Offic e r, Ale x Sgr o

T he Commission - F unc tion Make r e c omme ndations on the distr ibution of untie d Commonwe alth financ ial assistanc e gr ants to loc al gove r ning author itie s in South Austr alia T he g ra nt pa yme nts c o nsist o f two c o mpo ne nts:  a g e ne ra l fina nc ia l a ssista nc e c o mpo ne nt; a nd  a n ide ntifie d lo c a l ro a d c o mpo ne nt T he total Gr ant to Counc il is untie d Gra nts a re distrib ute d imme dia te ly the Co mmissio n re c e ive s the funding

L e gislative Re quir e me nts  T he Co mmissio n is e sta b lishe d unde r the So uth Australian o c al Go ve rnme nt Grants Co mmissio n Ac t 1992 L

L e gislative Re quir e me nts  T he Co mmissio n is e sta b lishe d unde r the So uth Australian o c al Go ve rnme nt Grants Co mmissio n Ac t 1992 . L  T he Co mmissio n ma ke s re c o mme nda tio ns pursua nt to the Co mmo nwe a lth L o c al Go ve rnme nt (F inanc ial Assistanc e ) Ac t 1995 , whic h se ts o ut: • Ho w the Co mmo nwe a lth de te rmine s the po o l o f a va ila b le funding • T he 6 Na tio na l Princ iple s to b e a pplie d b y the Co mmissio n in ma king its re c o mme nda tio ns; a nd • T he re q uire me nt to ho ld Pub lic he a ring s with a nd re c e ive sub missio ns fro m a ll c o unc ils a b o ut the Co mmissio ns re c o mme nda tio ns. T he Co mmissio n visits e a c h c o unc il o nc e e ve ry 3 ye a rs

T ota l Commonwe a lth F ina nc ia l Assista nc e Gra nts for L oc a l Gove rnme nt Sta te E ntitle me nts 2015- 16 a nd 2016- 17 2015-16 2016-17 % Change State Proportion Allocation Proportion Allocation Plus 15/16 to (adjusted for actual) Actual (based on estimates) Brought Fwd Pmt 16/17 (%) ($mill) (%) ($mill) (%) New South Wales 31.10 711.60 31.11 712.09 0.07 Victoria 23.60 539.89 23.69 542.14 0.42 Queensland 19.69 450.54 19.67 450.26 (0.06) Western Australia 12.27 281.14 12.23 280.00 (0.41) South Australia 6.65 152.09 6.62 151.43 (0.43) Tasmania 3.14 71.83 3.13 71.54 (0.40) Northern Territory 1.44 32.91 1.43 32.64 (0.82) Australian Capital Territory 2.12 48.57 2.12 48.58 0.02 TOTAL 100.00 2,288.57 100.00 2,288.68 0.00

Ge ne r al Pur pose Gr ants 2015- 16 and 2016- 17 2015-16 2016-17 % Change State Proportion Allocation Proportion Allocation Plus 15/16 to (adjusted for actual) Actual (based on estimates) Brought Fwd Pmt 16/17 (%) ($mill) (%) ($mill) (%) New South Wales 32.03 507.52 32.05 508.00 0.09 Victoria 24.92 394.88 25.05 397.12 0.57 Queensland 20.11 318.75 20.09 318.47 (0.09) Western Australia 10.93 173.59 10.88 172.45 (0.66) South Australia 7.16 113.43 7.11 112.77 (0.58) Tasmania 2.18 34.55 2.16 34.27 (0.84) Northern Territory 1.03 16.43 1.02 16.16 (1.65) Australian Capital Territory 1.64 26.02 1.64 26.03 0.04 TOTAL 100.00 1,585.18 100.00 1,585.25 0.00

F inanc ial Assistanc e Gr ants 2016- 17 City of Bur nside Ge ne ra l Purpo se Gra nt $ 897,077 -0.65% I de ntifie d L o c a l Ro a d Gra nt -0.10% $ 464,129 Spe c ia l L o c a l Ro a d Gra nt (I L RG a nd/ o r RT R) $ - Adjustme nt fo r 2015-16 $ 245 $ 1,361,451 T otal Gr ant for 2016- 17

National Pr inc iple s  Ho rizo nta l E q ua lisa tio n  Pe r Ca pita Minimum  E ffo rt Ne utra lity  Othe r Gra nt Suppo rt  Ab o rig ina l a nd T o rre s Stra it I sla nde rs  Co unc il Ama lg a ma tio n (Ne w Princ iple in 2006-07)

National Pr inc iple s Hor izontal E qualisation F ull hor izontal e qualisation a s de fine d b y the Co mmo nwe alth inanc ial Assistanc e ) Ac t 1995 Se c tio n 6(3a ) L o c al Go ve rnme nt (F is a re fe re nc e to a n a llo c a tio n o f funds tha t:  e nsure s tha t e a c h lo c a l g o ve rning b o dy in a Sta te is a b le to func tio n, b y re a so na b le e ffo rt, a t a standar d no t lo we r than d o f o the r lo c a l g o ve rning b o die s in the the ave r age standar Sta te ; a nd  ta ke s a c c o unt o f diffe r e nc e s in the e xpe nditur e re q uire d to b e inc urre d b y lo c a l g o ve rning b o die s in the pe rfo rma nc e o f the ir func tio ns a nd in the ir c apac ity to r e ve nue aise r

National Pr inc iple s Hor izontal E qualisation Ac c o rding ly, the g ra nts sho uld c o mpe nsate c o unc ils fo r diffe r e nc e s in the c o sts o f pr o viding se r vic e s and in diffe r e nc e s aising c apac ity , a c c o rding to a the o re tic a l in the ir r e ve nue r mo de l s to the financ ial c apac ity of the Counc il , it E qualisation r e fe r do e s no t me a n tha t the le ve l o f se rvic e s must b e e q ua l Co unc ils ma y c ho o se to ha ve hig he r o r lo we r le ve l o f se rvic e a c c o rding to the ir o wn prio ritie s T he Commission aims to e qualise Counc ils financ ial c apac ity to c ommunitie s pr ovide a similar le ve l of se r vic e to the ir

National Pr inc iple s L o w Ca pa c ity Hig h Ca pa c ity to Ra ise to Ra ise Re ve nue Re ve nue Hig h L o w E xpe nditure E xpe nditure Ne e d Ne e d Ave r age

National Pr inc iple s Pe r Capita Minimum E a c h c o unc il is a ssure d o f re c e iving a s a minimum, the a mo unt to whic h the c o unc il wo uld b e e ntitle d, if 30% o f the to ta l a mo unt o f the fund wa s a llo c a te d o n a pe r c a pita b a sis $19.92 pe r c apita for 2016- 17 E ffor t Ne utr ality T he g ra nt is inde pe nde nt o f the po lic y o r pra c tic e s o f the individua l c o unc il in re la tio n to re ve nue a nd e xpe nditure Othe r Gr ant Suppor t Othe r re le va nt Gra nt Suppo rt pro vide d to c o unc ils to me e t a ny o f the e xpe nditure ne e ds a sse sse d is ta ke n into a c c o unt using the inc lusio n a ppro a c h

National Pr inc iple s Abor iginal Pe ople s and T or r e s Str aight Islande r s Gra nts a re a llo c a te d in a wa y whic h re c o g nise s the ne e ds o f Ab o rig ina l pe o ple s a nd T o rre s Stra it I sla nde rs Counc il Amalgamation (Ne w Pr inc iple in 2006- 07) Whe re two o r mo re lo c a l g o ve rning b o die s a re a ma lg a ma te d into a sing le b o dy, the g e ne ra l purpo se g ra nt pro vide d to the ne w b o dy fo r e a c h o f the fo ur ye a rs fo llo wing a ma lg a ma tio n, sho uld b e the to ta l o f the a mo unts tha t wo uld ha ve b e e n pro vide d to the fo rme r b o die s in e a c h o f tho se ye a rs if the y ha d re ma ine d se pa ra te e ntitie s

Commission’s Me thodology Using a Mo de l, the Co mmissio n c a lc ula te s e a c h c o unc il’ s fina nc ia l c a pa c ity c o mpa re d to the a ve ra g e c o unc il T he re a re 2 c o mpo ne nts to the c a lc ula tio ns:  Re ve nue Compone nt  E xpe nditur e Compone nt A ma the ma tic a l fo rmula is use d fo r b o th re ve nue a nd e xpe nditure c a lc ula tio ns

Re ve nue Compone nt T he Re ve nue Compone nt e stima te s a g ra nt c o mpo ne nt b a se d o n the c o unc ils c a pa c ity to ra ise re ve nue c o mpa re d to the a ve ra g e c o unc il F a c to rs ta ke n into c o nside ra tio n in the re ve nue c o mpo ne nt inc lude :  Pr ty value s fro m the Va lue r Ge ne ra ls Offic e . T he ope r Co mmissio n use s c a pita l va lue s in the c a lc ula tio ns a nd ta ke s into c o nside ra tio n the 5 la nd use type s g e ne ra lly use d b y c o unc ils (re side ntia l, c o mme rc ia l, industria l, rura l a nd o the r)  Population – fro m the Austra lia n Bure a u o f Sta tistic s (ABS)  T he SE A I nde x o f E c o no mic Re so urc e s fro m the ABS. T his inde x IF is use d b y the Co mmissio n to a c c o unt fo r c o unc ils re la tive a dva nta g e o r disa dva nta g e c o mpa re d to the a ve ra g e c o unc il in re la tio n to its re side nts c a pa c ity to pa y