northern territory grants commission · 2012. 2. 2. · northern territory grants commission 03...

2010-11Annual Report

N O R T H E R N T E R R I T O R Y G R A N T S C O M M I S S I O N

ISSN 1835-4440

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

03Annual Report

Ms Malarndirri McCarthy MLA Minister for Local Government Parliament House DARWIN NT 0801

Dear Minister

In accordance with section 16 of the Local Government Grants Commission Act, I have pleasure in presenting to you the Annual Report for the Commission on its activities for 2010-11. Included in the report are the financial statements for the year ended 30 June 2011.

Yours sincerely

Bob Beadman Chairman

14 October 2011

04Annual Report

Foreword 06

The Northern Territory Grants Commission 08

Background 09

Relevant legislation 09

Organisation and People 10

Membership 11

Members’ profiles 12

Administration and staffing 13

Summary of Activities 2010-11 14

Methodology 15

Annual conference 15

Executive Officers’ meeting 16

Visits to local governing bodies 16

Public hearings 16

Financial data 16

Annual financial statements 16

Submissions 16

Payments 2010-11 16

Estimated entitlement 2011-12 17

Entitlement 2010-11 17

Cash entitlement 2011-12 17

Communication with councils 17

Council letters of advice 17

Revenue and expenditure assessments of local governments 17

Recommendations 18

Chairman’s letter 19

Recommendation Schedule 2011-12 21

Schedules 22

Schedule 1 Population 2011-12 23

Schedule 2 Cost adjustors and key drivers 2011-12 23

Schedule 3 Road lengths 2011-12 24

Schedule 4 Reconciliation of local government income and expenditure 25

Schedule 5 Local government income 2009-10 26

Schedule 6 Actual local government expenditure 2009-10 27

Schedule 7 Assessed revenue 2009-10 28

Schedule 8 Summary standardised revenue 29

CONTENTS

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

05Annual Report

Schedule 9 Standardised expenditure 30

Schedule 10 National share of financial assistance grants 2011-12 31

Schedule 11 Visits to local governing bodies 32

Schedule 12 Schedule of councils who failed to lodge their 2009-10 annual financial statements by the date specified 35

Appendices 36

Appendix A National principles for the allocation of general purpose and local road grants 37

Appendix B Methodology and formula factors 38

Appendix C The Australian Classification of Local Government (ACLG) 41

Appendix D Northern Territory local governments by classification 42

Appendix E Northern Territory map of shire areas 43

Appendix F Independent Auditor’s Report to the Minister for Local Government 44

Northern Territory Grants Commission balance sheet and income statement for the year ended 30 June 2011 45

Foreword

Annual Report N

OR

THER

N TER

RITO

RY G

RA

NTS CO

MM

ISSION

07On behalf of my fellow Commissioners I am pleased to present the 25th annual report of the Northern Territory Grants Commission. The report contains information on the distribution of funding, as well as detailing the objectives, performance and future directions of the Commission. My belief is that the report conveys sufficient relevant information on the Commission’s programs and performance during the year to enable any interested agency, organisation or individual to assess its operations and functioning.

The coincidence of the introduction of New Local Government in 2008-09 and the completion of the phased-in methodology has allowed the Commission to take breath and determine its priorities into the future.

During 2010-11 the primary focus of the Commission was the further refinement of our methodology in the following two areas:

• Review of the Location Factor; and

• Re-examine the regional centre recognition issue

During the course of the 2011-12, the Commission will also be examining it road funding methodology in light of the proposed local road transfers form the Northern Territory Government to the recently created shires now that almost full incorporation of the Northern Territory has been achieved (as opposed to the previous five per cent of the land mass).

Further information on the status of these activities is contained within the body of the report.

Whilst the early information technology problems experienced by shires have been largely resolved, it is disappointing that a large number of the shire councils are still not meeting the statutory deadlines for submitting their audited financial statement and annual data returns to the Commission. However, I am pleased to advise that all councils eventually produced a full set of 2009-10 audited financial statements, along with completion of annual returns to the Commission. It is hoped that the continued delays experienced by the eight new local government shires in the presentation of this data will not be repeated in future years.

The data collected is forwarded to the Australian Bureau of Statistics (ABS) for use in government finance statistics and national accounts. Through this process, a very good working relationship has been established between the relevant staff of ABS and the Commission.

The Commission conducted a series of well attended visits to shires and their service delivery centres throughout the 2010-11 year. Five shire councils and their respective service delivery centres were visited, with a public hearing being held in Litchfield.

On behalf of the Commission members I wish to record our appreciation for the valuable cooperation and assistance that we have received during our work throughout the year from local governing bodies, and in particular, those visited during the course of the year.

The Commission is grateful for the executive support and assistance provided by Mr Peter Thornton and Mrs Donna Hadfield of the Local Government Grants Program of the Department of Housing, Local Government and Regional Services, combined with assistance and services provided by regional offices of the Department.

I would also like to acknowledge the efforts of my colleagues: Ms Trish Angus, Mr Damien Ryan, Mr Steven Hennessy and deputies Mrs Lissa Herrmann and Mrs Margaret Vigants. Their assistance has been very much appreciated.

There is no doubt that 2011-12 will be equally as challenging as the previous year. On behalf of all Commissioners, I look forward to working with the Minister for Local Government, all councils, councillors and staff and the Commonwealth Department of Regional Australia, Regional development and Local Government in the allocation of the funding, and in particular on any further refinement of the methodology.

Bob Beadman Chairman

The Commission

Annual Report N

OR

THER

N TER

RITO

RY G

RA

NTS CO

MM

ISSION

09BACkGROuNDOn 1 July 1986, the Commonwealth Government began a process of yearly appropriations to the state/territory governments for distribution as financial assistance grants to local governing bodies within the respective jurisdictions. A subsequent review of the enabling legislation led to the current Act, the Local Government (Financial Assistance) Act 1995.

under section 6(1) of the Act, the Commonwealth Minister, after consulting with the relevant state Ministers and with bodies representative of local government, must formulate national principles.

In formulating the national principles, the Minister:

(a) is to have regard to the need to ensure that the allocation of funds for local government purposes is made, as far as practicable, on a full horizontal equalisation basis; but

(b) must ensure that no local governing body will be allocated an amount in a year that is less than the amount that would be allocated to the body if 30 per cent of the amount to which the state/territory is entitled, in respect of the year, was allocated among local governing bodies on a per capita basis.

The Local Government (Financial Assistance) Act 1995 also requires each state and the Northern Territory to have a Local Government Grants Commission. In accordance with that requirement, the Northern Territory legislated for a statutory, independent commission, the Northern Territory Grants Commission (the Commission), in June 1986.

Role of the Northern Territory Grants CommissionThe Commission is established as an independent statutory authority under the Local Government Grants Commission Act. Its primary role is to recommend the allocation of the financial assistance grants provided by the Commonwealth Government for Northern Territory local governing bodies in the form of general purpose grants and local roads grants.

RELEVANT LEGISLATIONThe Northern Territory’s Local Government Grants Commission Act also repeated a requirement of an earlier Act that provides for the appointment of Commission members, and specifies the general operations of the Commission, including the annual reporting requirements.

The Commonwealth’s Local Government (Financial Assistance) Act 1995 provides for the basis of the allocation of financial assistance by each Local Government Grants Commission to its respective local governing bodies in its state and/or the Northern Territory.

The national principles formulated by the Commonwealth Minister are to guide the respective Local Government Grants Commissions in the allocation of funds to local governing bodies within their own jurisdictions.

The number of national principles currently stands at seven – six applying to the allocation of general purpose grants and one applying to the allocation of local road grants. The national principles are detailed at Appendix A.

Organisation and people

Annual Report N

OR

THER

N TER

RITO

RY G

RA

NTS CO

MM

ISSION

11

In 2010-11, the members of the Commission were:

Mr Bob Beadman Chairman – appointed 1 November 2002 to 31 October 2012

Ms Trish Angus CE’s delegate – appointed 5 January 2010

Mr Damien Ryan Representing municipal councils – appointed 25 November 2008 to 31 August 2011

Mr Steven Hennessy Representing shire councils – appointed 11 May 2010 to 31 August 2013

Mrs Lissa Herrmann Deputy of Mr Ryan

Mrs Margaret Vigants Deputy of Mr Hennessy

MEMBERSHIPThe Local Government Grants Commission Act 1986 provides for a Commission of four members, consisting of:

• a Chairman appointed by the Minister;

• the Chief Executive Officer (CEO) of the agency primarily responsible to the Minister for the administration of the Act, or his delegate, and

• two members appointed by the Minister, one representing the interests of municipal councils and the other representing the interests of shire councils.

In 2010-11, the Accountable Officer of the Commission was:

Mr Peter Thornton Accountable Officer – appointed 28 July 2009

12Annual Report

MEMBERS PROFILES

Bob BeadmanBob was appointed Secretary to the Northern Territory Department of Lands, Housing and Local Government and CEO to the Office of Aboriginal Development on 31 October 1994. He retired from these positions on 18 December 2001.

From 1973, Bob was involved in Aboriginal affairs at senior levels in the Commonwealth Department of Aboriginal Affairs, and previously worked in the Top End and Central Australia on separate occasions. He acted at Deputy Secretary level on numerous occasions.

Career highlights include working with Torres Strait Islanders – at the Prime Minister’s request – on Australia’s International Border with Papua New Guinea, two extended periods as Senior Private Secretary to the Minister for Aboriginal Affairs and representing Australia at the International Labour Organisation and the united Nations Working Group on Indigenous peoples.

In the Territory, Bob’s career highlights have included reform of the approach to local government, public housing policy and library grants distribution methodology. He was Chairman of the Swimming Pool Fencing Review Panel and the recently retired NT Coordinator General for Remote Services (May 2009 to May 2011). Bob was appointed Chairman of the Grants Commission on 1 November 2002.

Trish AngusTrish joined the department in 1999. During the past 10 years, she has held a range of executive level positions and has provided stewardship for the department through a number of significant changes and reforms. Trish has been the Executive Director for Policy and Program Development since the departmental restructure. She previously held a number of executive positions in government and the community sector.

Trish has tertiary qualifications in health and management, including a Masters Degree in Tropical Health.

Damien RyanDamien was born and educated in Alice Springs. He started work at the Alice Springs Camera Shop in 1972, and purchased the store in 1974. He also gained invaluable knowledge of the transport and tourism industries as licensee of the Mt Ebenezer Roadhouse and later as co-owner of Dunmarra Roadhouse. He is Chair of the Regional Development Australia – NT Inc and Executive Member of the Central Australian Chamber of Commerce.

As Vice President of the Finke Desert Race, Damien is a tireless worker for that event and is a life member of the committee. He was President of the Alice Springs Motor Cycle Club during the late 1970s and early 1980s, and was instrumental in promoting the toughest off-road motorcycle race in Australia, the Radio Alice 12-Hour Enduro, from 1978-1988, held on Mt Ebenezer Station.

Damien was awarded the Photographic Imaging Council of Australia (PICA) Award as Photographic Dealer of the Year in 2000. In 2002 he achieved industry support for his proposal to raise more than $250,000 in three years by selling photo frames to fund research into the causes of dementia and Alzheimer’s disease, receiving the NT Achiever Award in 2005 for his efforts. He was named a Paul Harris Fellow by Rotary International in 2006 for his assistance towards the furtherance of better understanding and friendly relations among peoples of the world.

Damien was elected Mayor of Alice Springs in March 2008 and is passionate about promoting Alice Springs as a tourist destination. He works tirelessly to make ‘the Alice’ the best possible place it can be, both for those who live in Central Australia and those who visit.

Steven HennessySteven was born in South Australia and spent his youth in the Riverland before moving to Adelaide. He had a career in event support management for Spotless Catering across south-east Australia from the early 1980s until 1995, when he was injured in a car accident. After being a regular visitor to the Territory since 1998, he became a permanent resident of Timber Creek, 300 kilometres south-west of katherine, in 2005.

Steven became a councillor for the Victoria Daly Shire Council in October 2008. He is also a delegate of the Local Government Association of the Northern Territory, a member of the Timber Creek Fire and Emergency Response Group, and a member of the katherine West Health Board’s non-Indigenous sub-committee.

He is involved in restoration plans for the 1930s police house in Timber Creek, the last of its kind in the country. He is employed part-time by the Victoria Daly Shire Council, and has his own general maintenance small business.

Lissa HerrmannLissa Herrmann is a resident of the Darwin rural area and a long-time Territorian. She is a councillor on the Litchfield Council. Along with being the deputy representing municipal councils on the Northern Territory Grants Commission she is also a member of the Berry Springs Water Advisory Committee and an alternate member of the Development Consent Authority – Litchfield Division. She has an administration, finance and compliance background predominantly in the real estate and construction industries and has worked in the civil construction industry for the past six years.

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

13Annual Report

Margaret VigantsMargaret is a long-term resident of the Northern Territory and has lived in its remote areas for more than 20 years. She is a former President of the Local Government Association of the Northern Territory and was the President of the then Timber Creek Community Government Council for nine years prior to her relocation to Darwin.

She is a foundation member of the Statehood Steering Committee and until recently worked for an organisation that trains doctors as general practitioners.

ADMINISTRATION AND STAFFINGThe operating costs of the Commission for the year were met by funds appropriated to the Department of Housing, Local Government and Regional Services. The operational expenditure for 2010-11 was $209 824.75 compared to $183 697.47 in 2009-10.

The Executive Officer, Mr Peter Thornton, and Mrs Donna Hadfield of the Northern Territory Department of Housing, Local Government and Regional Services, coordinated the visitation program and assisted with the Commission’s activities by providing executive support.

Summary of Activities in

2010-11

Annual Report N

OR

THER

N TER

RITO

RY G

RA

NTS CO

MM

ISSION

15METHODOLOGYPrevious reports have documented the methodology review in detail since its implementation in 2005-06. That review, now completed, highlighted the need for a regular process of continual improvement to further refine the revenue and expenditure categories and appropriate cost adjustors.

A key outcome of the review was that the Commission determined that the cost adjustors of location, dispersion and Aboriginality are used, and appropriate data collection processes be implemented to ensure the adjustors can be explained and supported by meaningful and relevant information. These new cost adjustors were used for both the 2008-09 and 2009-10 allocations.

During 2010-11, the Commission undertook further research into the possible refinement of the methodology in the following areas:

• Review of the location factor - With the revised location factor now being determined on the freight delivery costs of diesel (as provided by the PowerWater Corporation) to the majority of the remote communities within the Northern Territory, the Commission’s attention turned to whether a further determinant for this factor should be explored. Some work commenced during 2010-11 around the types and standard of access to these communities with a view that this also significantly impacts on the service delivery costs of shire councils, particularly where the shires incorporate remote island communities.

This work will be continued during 2011-12 and may see a further modified location factor adopted for the calculation of the 2012-13 general purpose and possibly road grants.

• Regional centre recognition - Over many years this Commission (and other Grants Commissions in Australia) have grappled with the concept of regional centre status and how it impacts on the expenditures and revenues of the relevant local government council. These deliberations were made with a view to determining whether a particular council should be ‘financially compensated’ for being a regional centre where a number of its services are utilised by non-rate paying clientele.

After extensive modelling, mainly around varying population numbers for katherine and Alice Springs, in line with extended visitation numbers, the Commission decided it was not possible to financially compensate councils affected by this population migration within the current methodology. The Commission did, however, develop a discussion paper for the consideration of the Northern Territory Minister for Local Government encouraging her to consider diverting funding from an appropriate local government funding program to these two councils in recognition of the cost imposts for such non-resident usage of council facilities and services.

The Department of Housing, Local Government and Regional Services is now examining whether there could be another way of recognising the load on these councils through such a mechanism, particularly as it is believed that the majority of the visitors significantly impacting on service delivery costs are residents of the surrounding shires.

Looking to the future, the Grants Commission has on its agenda a comprehensive review of its road funding methodology that has remained largely unchanged since the implementation of the direct roads funding arrangement in 1994-95. The trigger for the review’s commencement will be the successful negotiation of the transfer of approximately 6500 kilometres of roads, currently maintained by the Northern Territory Government, to the respective shire councils.

NATIONAL CONFERENCE OF THE LOCAL GOVERNMENT GRANTS COMMISSIONSThe National Conference of Local Government Grants Commissions was held at the Hotel Windsor in Melbourne, Victoria, from 12-14 October 2010.

The conference covered financial assistance – 35 years on, population growth and movement, livability, the role of councils and bushfire response and recovery.

Papers were presented by Mr Robert Searle, former Secretary, Commonwealth Grants Commission; Professor Graeme Sansom, Director, Australian Centre of Excellence for Local Government: Ms kay Rundle, Chief Executive Officer, Port Phillip City Council; Ms Ruth Spielman, Executive Officer, National Growth Areas Alliance; Dr Bob Birrell, Centre for Population and urban Research; Mr Ben Hubbard, Chief Executive Officer, Victorian Bushfire Reconstruction and Recovery Authority; Mr Glenn Patterson, Chief Executive Officer, Yarra Ranges Shire Council; and Professor John McAneney, Director of Risk Frontiers.

Delegates and partners were also invited to the official conference dinner in the Grand Ballroom at the Hotel Windsor.

16Annual Report

ExECuTIVE OFFICERS’ MEETINGTwo Executive Officers meetings were convened during 2010-11. The first was held after the conclusion of the national conference in Melbourne, with the primary topic being the cancellation of the meeting that should have been convened in Canberra in February 2010. A key outcome of this meeting was a firm commitment to ensure future meetings are held annually in Canberra and are convened by the Department of Regional Australia, Regional Development and Local Government.

In April 2011, the Department of Regional Australia, Regional Development and Local Government, National Office of Local Government convened a meeting in Canberra of Executive Officers from each state and territory. The Northern Territory Executive Officer, Mr Peter Thornton, attended this meeting.

key issues discussed included Natural Disaster Relief and Recovery Assistance, the 2011 Census and growth issues, together with presentations from each of the jurisdictions.

VISITS TO LOCAL GOVERNING BODIESThe rolling visitation program on a shire and municipal basis continued in 2010-11 The program of Commission visits takes three years to complete, although special circumstances may warrant departures from the pre-planned program. The five shire councils and their associated 14 service delivery centres visited this year are listed in Schedule 11.

PuBLIC HEARINGSIn accordance with section 11 of the Commonwealth’s Local Government (Financial Assistance) Act 1995, the Commission held one public hearing during the year (in Litchfield on 9 March 2011).

FINANCIAL DATAThe total revenue and expenditure of councils in the 2009-10 financial year amounted to $465 million and $436 million respectively. Included in these amounts were revenues and expenditures not considered to relate strictly to local governments. Thus, for the 2011-12 allocations, the Commission determined local government income to be $112.452 million and local government expenditure to be $260.745 million.

As mentioned in the foreword, it is hoped the numerous delays experienced by the eight new local government shires in presenting financial information have been resolved for future years.

The data collected on the returns is used by the Commission to enable an assessment of the income and expenditures of individual councils and to determine total income and expenditure of all local governments in the Northern Territory. It is also used by the ABS in its government financial statistics and national accounts, as well as by the department in its local government performance measurement publications.

ANNuAL AuDITED FINANCIAL STATEMENTSRegulation 17 of the Local Government (Accounting) Regulations stipulates that a copy of councils’ audited annual financial statements are to be forwarded to the Chairman of the Northern Territory Grants Commission no later than 15 November. For the financial year 2009-10, six councils failed to lodge their annual financial statements by the date specified. These councils are listed in Schedule 12.

SuBMISSIONSNo submissions were presented to the Commission at public hearings or visits during the year.

PAYMENTS 2010-11During 2010-11, grants continued to be paid in quarterly instalments. The total payments to local governing bodies during the year are summarised below. In addition, the Commonwealth advanced the payment of the first quarter of the 2011-12 funding into the 2010-11 financial year as a stimulus measure, to improve councils’ financial capacity and assist in planning their works program for 2011-12.

8 October 2010 $5 621 361

16 November 2010 $5 621 361

17 February 2011 $5 621 361

17 May 2011 $5 621 418

Total distribution of 2010-2011 payments $22 485 501

23 June 2011 $7 680 741

Total 2011-12 advance payment $7 680 741

Total payment 2011-12 $30 166 242

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

17Annual Report

ESTIMATED ENTITLEMENT 2011-12The estimated entitlements for 2011-12 are based on Commonwealth estimates of the annual CPI and the Territory’s share of the national population.

ENTITLEMENT 2010-11The Commonwealth estimates of the annual CPI and the Territory’s share of the national population were lower than the actual CPI and population. This resulted in the entitlement for 2010-11 being under-estimated for both the general purpose and roads components, and an underpayment of $69 981 for general purpose and $47 837 for roads – a total underpayment of $117 818. Adjustments have been made across all councils based on the data used for the distribution of the estimated entitlement for 2010-11.

CASH ENTITLEMENT 2011-12The cash entitlement for 2011-12 is the estimated entitlement for the year plus the underpayment for general purpose and roads in 2010-11.

COMMuNICATION WITH COuNCILSIn accordance with its policy to keep all Northern Territory councils informed about its operations and latest developments, the Commission corresponds on a regular basis with individual councils on many issues. The following list summarises the main items sent to all councils during the year.

Subject Date

Letter advising the estimated entitlements for the 2010-11 General Purpose Grant

5 October 2010

Letter electronically advising the requirement to lodge an annual return

22 October 2010

Distribution of the Commission’s Annual Report

4 January 2011

Letter electronically advising the requirement to lodge an annual road return

4 February 2011

Letter advising early release of 2011-12 grants in 2010-11

20 June 2011

The Commission Secretariat undertook a series of shire grant workshops (including the Alice Springs and katherine town councils)

First quarter 2010-11

COuNCIL LETTERS OF ADVICELetters of advice provided in 2010-11 provided the following comprehensive information to councils:

i. A sheet detailing the council’s grant allocations and payment schedule for 2010-11;

ii. A sheet showing the calculation of standardised expenditure and standardised revenue for the council;

iii. A matrix showing the application of the three cost adjusters against the various expenditure categories;

iv. A bar chart and table showing the cost adjusters calculated for the council which underpin the calculation of standardised expenditures;

v. A sheet showing the calculation of the council’s identified local road entitlement for 2010-11; and

vi. A sheet showing the 2010-11 grant allocations for all Northern Territory councils.

A similar package will be provided to each council for the coming year, and this process will continue into the future.

REVENuE AND ExPENDITuRE ASSESSMENTS OF LOCAL GOVERNMENTSRevenue and expenditure assessments are included at Schedules 8 and 9. key drivers and a matrix of how the cost adjustors are applied are also included at Appendix B.

Recommendations

Annual Report N

OR

THER

N TER

RITO

RY G

RA

NTS CO

MM

ISSION

19CHAIRMAN’S LETTERMs Malarndirri McCarthy MLA Minister for Local Government GPO Box 3146 DARWIN NT 0801

Dear Minister

I have recently received advice on the amounts available for allocation as financial assistance grants under the Commonwealth’s Local Government (Financial Assistance) Act 1995 for the 2011-12 financial year.

In accordance with this advice and section 12(1)(a) of the Local Government Grants Commission Act, I am now pleased to present to you the Commission’s recommendations for the distribution of these grants. In making the recommendations, I confirm that:

(a) all general purpose recommendations conform with section 6(2)(b) of the Commonwealth’s Local Government (Financial Assistance) Act 1995 in allocating amounts that are not less than those to which local governing bodies would be eligible to receive if 30% of the total to which the Northern Territory is entitled was distributed among local governing bodies on a per capita basis;

(b) the Commission held public hearings and permitted local governing bodies and the Local Government Association of the Northern Territory to make submissions in connection with the recommendations in accordance with section 11(2)(c)(i) & (ii) of the Local Government (Financial Assistance) Act 1995;

(c) road funds were divided on weighted road length but, in addition, continued to include a base or minimum figure of $10 000 for all councils on the basis that a derived figure of less than this amount would not be commensurate with a realistic acceptance of road maintenance and responsibility; and

(d) the allocations comply with section 12(1)(a) of the Local Government Grants Commission Act in that the total amount of all money recommended to be allocated is equal to the amount of money provided to the Territory under the Local Government (Financial Assistance) Act 1995 for the 2011-12 financial year.

The Recommendation Schedule (Attachment A) outlines the proposed grant allocations for approval by Minister Crean. The Recommendation Schedule comprises the “estimated entitlement” for 2011-12 minus the advance ‘stimulus’ payment already made in 2010-11, the cash adjustment for 2010-11 and the proposed grant recommendations.

Estimated EntitlementThe Commonwealth allocates the local road and general purpose grants based on an estimated population figure and an estimated CPI growth factor for the coming year as determined by the Australian Statistician. This calculation is what is known as the estimated entitlement. The amounts for this year are $15 494 286 and $15 262 770 respectively.

Cash AdjustmentThis is the distribution of the underpayment of the grants in 2010-11. The underpayments were $69 981 (general purpose) and $47 837 (local roads) respectively. underpayments (or sometimes overpayments) occur when the growth factors used in determining the “estimated entitlement” are less than or greater than the actual growth factors.

The revised methodology continues its trend in directing money from the ‘bitumen to the bush’ as well as reducing the grants to the small councils in the Top End. It should be noted that there are again significant losses to be incurred by the katherine and Alice Springs Councils. These losses will be $34 781, and $115 005 respectively.

Commissioner Ryan (Mayor of Alice Springs and the municipal representative on the Commission) had great difficulty in supporting the recommendations given the significant losses again being experienced by the katherine and Alice Springs councils.

20Annual Report

This again raises the issue of ‘regional centre recognition’, particularly in relation to the efforts of the katherine and Alice Springs councils to have recognised the significant impacts of non resident usage of council services and on council expenditures. After extensive modelling the Commission came to the realisation that compensating these councils for this impost could not be achieved by the Financial Assistance Grants program because of the Australian Government’s legislative and administrative constraints within which this Commission must operate.

I wrote to you on 19 November 2010 attaching a Commission endorsed issues paper, seeking your assistance to address this issue utilising other funding that falls within your responsibility as the Minister for Local Government. On behalf of the Commission I wrote again in mid-March 2011 seeking advice on the status of the Commission’s submission.

Resolution of the ‘regional centre recognition’ issue would likely dampen what is expected to be a negative public response from the Alice Springs Town Council, and relieve Commissioner Ryan somewhat, who will shortly have to advise his council of a further $115 005 funding loss for 2011-12.

Given these circumstances Minister I would again urge you to make a decision on this long running issue.

In relation to the advice to councils, the Commission will continue to contain support documentation that will allow them to have a greater appreciation on exactly how the Commission has calculated their grants.

The Commission’s Annual Report is currently being prepared and will be forwarded to you in accordance with section 16 of the Local Government Grants Commission Act in due course.

Yours sincerely

BOB BEADMAN Chairman

5 August 2011

21Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

FINANCIAL ASSISTANCE GRANTS 2011-12Recommendation Schedule 2011-12

Coun

cil

Entit

lem

ent

gene

ral

purp

ose

20

11-1

2

($)

Add

adju

stm

ent

2010

-11

($)

Less

adv

ance

pa

ymen

t in

201

0-11

($

)

Tota

l gen

eral

pu

rpos

e 20

11-1

2 ($

)

Entit

lem

ent

road

s 20

11-1

2 ($

)

Add

adju

stm

ent

2010

-11

($)

Less

adv

ance

pa

ymen

t in

201

0-11

($

)

Tota

l roa

ds

2011

-12

($)

Tota

l fin

anci

al

assi

stan

ce

2011

-12

($)

Mun

icip

ality

of D

arw

in1

604

322

7 34

940

0 89

21

210

779

1 84

3 24

85

734

463

023

1 38

5 95

92

596

738

Tiw

i Isla

nds S

hire

268

986

1 05

157

345

212

692

825

984

2 61

121

0 83

461

7 76

183

0 45

3

Mun

icip

ality

of P

alm

erst

on62

5 61

62

841

154

988

473

469

713

561

2 10

817

0 19

554

5 47

41

018

943

Mun

icip

ality

of L

itchfi

eld

402

973

1 82

599

534

305

264

2 26

9 35

27

186

580

285

1 69

6 25

32

001

517

Bely

uen

Shire

23 1

7878

4 25

019

006

30 7

2897

7 84

322

982

41 9

88

Coom

alie

Shi

re27

441

125

6 84

120

725

384

493

1 21

598

143

287

565

308

290

Wag

ait S

hire

6 82

443

2 33

94

528

52 2

6016

513

340

39 0

8543

613

Wes

t Arn

hem

Shi

re1

091

829

4 77

526

0 47

683

6 12

81

085

371

3 43

127

7 04

481

1 75

81

647

886

East

Arn

hem

Shi

re2

795

405

12 5

4468

4 33

62

123

613

1 05

1 78

93

324

268

472

786

641

2 91

0 25

4

Vict

oria

Dal

y Sh

ire1

312

779

5 95

332

4 76

699

3 96

61

454

449

4 52

536

5 38

41

093

590

2 08

7 55

6

Mun

icip

ality

of k

athe

rine

373

982

1 95

110

6 42

126

9 51

257

1 85

71

807

145

968

427

696

697

208

Rope

r Gul

f Shi

re1

667

251

7 43

540

5 59

91

269

087

898

900

2 81

222

7 12

167

4 59

11

943

678

Bark

ly S

hire

1 61

0 63

57

384

402

805

1 21

5 21

445

1 57

41

413

114

084

338

903

1 55

4 11

7

Mun

icip

ality

of A

lice

Sprin

gs58

0 93

93

321

181

187

403

073

908

621

2 85

723

0 72

868

0 75

01

083

823

Cent

ral D

eser

t Shi

re1

070

006

4 99

827

2 63

880

2 36

681

6 16

52

555

206

316

612

404

1 41

4 77

0

Mac

Donn

ell S

hire

1 80

0 60

48

308

453

214

1 35

5 69

895

8 30

22

401

193

932

766

771

2 12

2 46

9

Trus

t Acc

ount

(LGA

NT)

N/A

N/A

N/A

N/A

1 17

7 63

23

596

290

398

890

830

890

830

Tota

l$1

5 26

2 77

0 $6

9 98

1$3

817

631

$11

515

120

$15

494

286

$4

7 83

7$3

863

110

$11

679

013

$23

194

133

Schedules

23Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

SCHEDuLE 1Population used for the 2011-12 allocations

SCHEDuLE 2Cost adjustors and key drivers 2011-12

Council Population

Municipality of Darwin 77 347

Tiwi Islands Shire 2 536

Municipality of Palmerston 30 162

Municipality of Litchfield 19 428

Belyuen Shire 209

Coomalie Shire 1 323

Wagait Shire 329

West Arnhem Shire 6 913

East Arnhem Shire 10 088

Victoria Daly Shire 7 032

Municipality of katherine 10 112

Roper Gulf Shire 7 044

Barkly Shire 8 143

Municipality of Alice Springs 28 008

Central Desert Shire 4 822

MacDonnell Shire 7 257

Total 220 753

* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.

Council Location DispersionIndigenous background

Municipality of Darwin 1.00 1.00 1.09

Tiwi Islands Shire 1.12 1.39 1.97

Municipality of Palmerston 1.00 1.00 1.13

Municipality of Litchfield 1.00 1.10 1.07

Belyuen Shire 1.00 1.00 1.98

Coomalie Shire 1.00 1.26 1.27

Wagait Shire 1.00 1.00 1.10

West Arnhem Shire 1.09 1.52 1.81

East Arnhem Shire 1.27 2.00 1.97

Victoria Daly Shire 1.07 1.94 1.88

Municipality of katherine 1.03 1.00 1.27

Roper Gulf Shire 1.12 2.00 1.93

Barkly Shire 1.14 1.65 1.75

Municipality of Alice Springs 1.12 1.00 1.30

Central Desert Shire 1.11 2.00 1.96

MacDonnell Shire 1.15 2.00 1.94


24Annual Report

SCHEDuLE 3Road lengths 2011-12

Coun

cil

Kerb

edSe

aled

Grav

elFo

rmed

Unfo

rmed

Cycl

e pa

ths

Tota

l roa

d le

ngth

s

(km

)Co

unci

l are

a (s

q. k

m)

Mun

icip

ality

of D

arw

in41

7.31

22.9

00.

130.

000.

0066

.57

506.

9114

1.75

Tiw

i Isla

nds S

hire

3.23

27.5

522

0.85

236.

8043

7.00

0.00

925.

437

500.

84

Mun

icip

ality

of P

alm

erst

on15

5.20

12.3

30.

000.

000.

0043

.76

211.

2956

.40

Mun

icip

ality

of L

itchfi

eld

12.1

055

9.26

157.

3324

.27

7.50

6.50

766.

963

072.

37

Bely

uen

Shire

0.00

2.35

0.00

14.0

067

.70

0.00

84.0

541

.60

Coom

alie

Shi

re2.

0651

.42

102.

848.

120.

000.

0016

4.44

1 51

2.14

Wag

ait S

hire

0.00

12.7

30.

000.

000.

000.

0012

.73

5.68

Wes

t Arn

hem

Shi

re18

.05

44.1

729

5.35

61.2

075

1.70

8.43

1 17

8.90

49 6

98.2

6

East

Arn

hem

Shi

re22

.24

49.9

820

6.73

215.

5174

3.50

0.00

1 23

7.96

33 3

02.4

2

Vict

oria

Dal

y Sh

ire10

.55

100.

0035

2.31

246.

6041

2.14

3.05

1 12

4.65

167

575.

00

Mun

icip

ality

of k

athe

rine

44.3

197

.32

0.80

0.00

20.7

216

.60

179.

757

421.

00

Rope

r Gul

f Shi

re9.

0855

.57

220.

1311

0.68

536.

731.

0093

3.19

185

175.

81

Bark

ly S

hire

34.7

322

.84

17.5

853

.42

485.

736.

9562

1.25

322

693.

27

Mun

icip

ality

of A

lice

Sprin

gs14

7.42

65.0

815

.83

2.37

0.00

23.6

925

4.39

327.

43

Cent

ral D

eser

t Shi

re3.

1342

.50

18.7

231

7.00

1,79

0.60

0.00

2 17

1.95

282

089.

76

Mac

Donn

ell S

hire

0.00

47.5

415

8.37

241.

601,

284.

700.

001

732.

2126

8 78

4.20

Trus

t Acc

ount

(LGA

NT)

0.45

4.09

324.

1152

6.87

1,32

4.90

0.00

2 18

0.42

N/A

Tota

ls87

9.86

1 21

7.63

2 09

1.08

2 05

8.44

7 86

2.92

176.

5514

286

.48

1 32

9 39

7.93

25Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

SCHEDuLE 4Reconciliation of local government income and expenditureReconciliation of actual revenue and expenditure as supplied by local governing bodies 2009-10

Actual revenue 2009-10 $ Identified local government revenue $

Rates and annual charges 103 351 821 General rates - municipal levied 76 703 106

Fines and penalties 1 360 485 Domestic waste 13 666 379

Grants and subsidies 240 692 633 Garbage other 1 969 148

Fuel rebate 316 427 Shire rates 7 759 701

Assets acquired without cost or below fair value 3 855 990 Parking 3 741 821

user fees and charges 33 405 103 Interest 8 612 502

Interest income 8 612 502 Total identified local government revenue $112 452 657

Profit on sale of assets 5 439 248 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items.Other current revenue (n.e.c) 47 537 646

Other capital revenue 21 130 343

Total actual revenue 2009-10 $465 702 198


Actual expenditure 2009-10 $ Identified local government expenditure $

Employee expenses 164 749 403 General public service 101 507 226

Materials and contracts 142 963 905 Public order and safety 13 206 108

Depreciation 54 603 719 Economic affairs 21 681 793

Bad debts 1 250 271 Environment protection 8 425 641

Current transfers expenses 1 608 322 Housing and community amenities 55 152 194

Interest 759 532 Health 2 633 531

Other expenses 70 515 896 Recreation, culture and religion 38 267 080

Total actual expenditure 2009-10 $436 451 048 Education 8 149 856


Social protection 11 722 022

Total identified local government expenditure $260 745 451


Balanced budget approach used for the 2011-12 allocations $

Identified local government revenue 112 452 657

50% Roads to Recovery grants 2010-11 2 137 281

Library grants 2010-11 3 523 000

Road grants 2010-11 13 697 809

Budget term 128 934 704

Total revenue $260 745 451

Identified local government expenditure $260 745 451

Total expenditure $260 745 451


26Annual Report

Council

Municipal rates ($)

Domestic waste

($)Garbage other

($)Shire rates

($)Interest

($)

Parking restricted

($)Total ($)

Municipality of Darwin 42 127 337 4 788 399 0 0 2 039 373 3 741 821 52 696 929

Tiwi Islands Shire 0 156 999 0 353 322 228 501 0 738 821

Municipality of Palmerston 9 589 725 1 867 269 0 0 1 151 114 0 12 608 108

Municipality of Litchfield 12 883 568 1 202 749 0 0 646 375 0 14 732 692

Belyuen Shire 0 12 939 0 29 118 1 430 0 43 487

Coomalie Shire 0 81 904 0 184 324 33 354 0 299 582

Wagait Shire 0 20 368 0 45 837 15 439 0 81 644

West Arnhem Shire 0 427 970 0 963 136 92 149 0 1 483 255

East Arnhem Shire 0 624 528 0 1 405 484 317 215 0 2 347 227

Victoria Daly Shire 0 435 337 0 979 715 647 193 0 2 062 245

Municipality of katherine 1 360 921 626 014 0 0 686 762 0 2 673 697

Roper Gulf Shire 0 436 080 0 981 387 407 260 0 1 824 727

Barkly Shire 0 504 117 0 1 134 502 127 203 0 1 765 822

Municipality of Alice Springs 10 741 555 1 733 920 1 969 148 0 1 216 909 0 15 661 532

Central Desert Shire 0 298 520 0 671 813 459 012 0 1 429 345

MacDonnell Shire 0 449 266 0 1 011 063 543 213 0 2 003 542

Total $76 703 106 $13 666 379 $1 969 148 $7 759 701 $8 612 502 $3 741 821 $112 452 657


SCHEDuLE 5Local government income 2009-10

27Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

Coun

cil

Econ

omic

af

fair

s

($)

Educ

atio

n

($)

Envi

ronm

enta

l pr

otec

tion

($

)

Gene

ral

publ

ic

serv

ices

($

)He

alth

($

)

Hous

ing

and

com

mun

ity

amen

ities

($

)

Publ

ic o

rder

an

d sa

fety

($

)

Recr

eatio

n,

cultu

re a

nd

relig

ion

($

)

Soci

al

prot

ectio

n

($)

Tota

l ($

)

Mun

icip

ality

of D

arw

in17

461

007

028

3 03

217

280

229

174

163

17 1

09 6

473

197

637

20 8

60 8

040

76 3

66 5

19

Tiw

i Isla

nds S

hire

7 52

8 65

596

2 83

610

159

5 81

9 43

80

3 33

2 19

577

760

133

7 28

322

055

18 7

90 2

22

Mun

icip

ality

of P

alm

erst

on4

591

357

452

263

02

926

878

05

094

057

421

354

4 93

7 96

80

18 4

23 8

77

Mun

icip

ality

of L

itchfi

eld

7 36

9 45

613

000

1 33

5 44

41

441

591

088

2 88

121

0 07

91

609

064

012

861

515

Bely

uen

Shire

00

1 60

865

5 22

30

234

162

011

8 48

433

8 25

81

347

735

Coom

alie

Shi

re78

1 50

70

430

209

1 41

9 33

40

21 3

9661

935

604

055

03

318

436

Wag

ait S

hire

199

879

05

553

278

551

011

5 44

33

340

133

443

073

6 20

9

Wes

t Arn

hem

Shi

re11

422

021

215

344

236

737

10 7

86 9

0834

2 99

48

189

212

2 43

6 13

33

069

366

2 08

9 12

838

787

843

East

Arn

hem

Shi

re10

665

657

5 44

0 19

639

3 15

114

473

093

463

306

5 32

3 14

01

984

565

2 30

4 29

44

435

822

45 4

83 2

24

Vict

oria

Dal

y Sh

ire9

319

469

1 56

5 72

86

112

16 7

28 0

662

248

489

8 77

7 48

77

131

1 30

9 31

71

329

160

41 2

90 9

59

Mun

icip

ality

of k

athe

rine

4 28

3 63

10

1 0

14 3

501

481

183

052

7 03

725

8 49

52

285

164

09

849

860

Rope

r Gul

f Shi

re91

8 64

10

448

467

14 0

20 4

460

14 0

34 0

982

467

347

2 39

2 46

780

5 04

635

086

512

Bark

ly S

hire

1 92

1 06

20

478

587

18 7

57 7

810

3 40

7 42

30

2 47

0 97

47

479

397

34 5

15 2

24

Mun

icip

ality

of A

lice

Sprin

gs1

897

059

09

385

277

14 3

79 6

490

1 78

8 32

41

414

327

3 60

9 57

756

910

32 5

31 1

23

Cent

ral D

eser

t Shi

re53

8 73

10

590

607

12 1

44 0

610

7 90

0 00

02

846

460

332

160

2 92

0 10

327

272

122

Mac

Donn

ell S

hire

2 32

8 40

30

037

461

265

00

00

039

789

668

Tota

l$8

1 22

6 53

5$8

649

367

$14

619

293

$170

053

696

$3 2

28 9

52$7

6 73

6 50

2$1

6 08

6 40

4$4

6 37

4 42

0$1

9 47

5 87

9$4

36 4

51 0

48

* Fi

gure

s hav

e be

en ro

unde

d an

d di

scre

panc

ies m

ay o

ccur

bet

wee

n to

tals

and

the

sum

s of t

he co

mpo

nent

item

s.

SCHEDuLE 6Actual local government expenditure 2009-10

28Annual Report

SCHEDuLE 7Assessed revenue 2009-10

Council

Domestic waste

($)

Garbage other

($)

General rates ($)

Shire rates ($)

Parking restricted

($)Interest

($)

Total assessed revenue

($)

Municipality of Darwin 4 788 399 0 42 127 337 0 3 741 821 2 039 373 52 696 929

Tiwi Islands Shire 156 999 0 0 353 322 0 228 501 738 821

Municipality of Palmerston 1 867 269 0 9 589 725 0 0 1 151 114 12 608 108

Municipality of Litchfield 1 202 749 0 12 883 568 0 0 646 375 14 732 692

Belyuen Shire 12 939 0 0 29 118 0 1 430 43 487

Coomalie Shire 81 904 0 0 184 324 0 33 354 299 582

Wagait Shire 20 368 0 0 45 837 0 15 439 81 644

West Arnhem Shire 427 970 0 0 963 136 0 92 149 1 483 255

East Arnhem Shire 624 528 0 0 1 405 484 0 317 215 2 347 227

Victoria Daly Shire 435 337 0 0 979 715 0 647 193 2 062 245

Municipality of katherine 626 014 0 1 360 921 0 0 686 762 2 673 697

Roper Gulf Shire 436 080 0 0 981 387 0 407 260 1 824 727

Barkly Shire 504 117 0 0 1 134 502 0 127 203 1 765 822

Municipality of Alice Springs 1 733 920 1 969 148 10 741 555 0 0 1 216 909 15 661 532

Central Desert Shire 298 520 0 0 671 813 0 459 012 1 429 345

MacDonnell Shire 449 266 0 0 1 011 063 0 543 213 2 003 542

Total $13 666 379 $1 969 148 $76 703 106 $7 759 701 $3 741 821 $8 612 502 $112 452 657


29Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

SCHEDuLE 8Summary standardised revenue

Council

Assessed NT average

revenue ($)

2010-11 Roads to Recovery

($)

2010-11 Library grant

($)

2010-11 Roads grant

($)Budget term

($)

Total standardised

revenue ($)

Municipality of Darwin 52 696 929 0 1 324 874 1 775 233 45 175 887 100 972 923

Tiwi Islands Shire 738 821 156 094 56 741 808 341 1 481 196 3 241 193

Municipality of Palmerston 12 608 108 0 512 997 652 528 17 616 651 31 390 284

Municipality of Litchfield 14 732 692 412 221 0 2 224 817 11 347 268 28 716 997

Belyuen Shire 43 487 5 807 0 30 072 122 070 201 436

Coomalie Shire 299 582 68 783 45 595 376 280 772 722 1 562 962

Wagait Shire 81 644 9 876 0 51 144 192 158 334 822

West Arnhem Shire 1 483 255 201 972 87 138 1 062 189 4 037 660 6 872 214

East Arnhem Shire 2 347 227 181 109 192 514 1 029 324 5 892 075 9 642 250

Victoria Daly Shire 2 062 245 269 348 135 773 1 400 884 4 107 164 7 975 415

Municipality of katherine 2 673 697 111 850 228 281 559 642 5 906 093 9 479 563

Roper Gulf Shire 1 824 727 169 791 146 918 870 783 4 114 173 7 126 392

Barkly Shire 1 765 822 84 463 162 117 437 399 4 756 064 7 205 865

Municipality of Alice Springs 15 661 532 170 807 516 570 884 615 16 358 569 33 592 092

Central Desert Shire 1 429 345 151 580 79 032 791 019 2 816 375 5 267 351

MacDonnell Shire 2 003 542 143 580 34 450 743 539 4 238 580 7 163 691

Total $112 452 657 $2 137 281 $3 523 000 $13 697 809 $128 934 704 $260 745 451


30Annual Report

SCHEDuLE 9Standardised expenditure

Coun

cil

Gene

ral

publ

ic

serv

ices

($

)

Publ

ic o

rder

an

d sa

fety

($

)

Econ

omic

af

fair

s ($

)

Envi

ronm

enta

l pr

otec

tion

($)

Hous

ing

and

com

mun

ity

amen

ities

($

)He

alth

($

)

Recr

eatio

n,

cultu

re a

nd

relig

ion

($)

Educ

atio

n ($

)

Soci

al

prot

ectio

n ($

)

Tota

l st

anda

rdis

ed

expe

nditu

re

($)

Mun

icip

ality

of D

arw

in29

221

329

2 74

9 54

15

869

388

2 95

2 15

911

482

809

548

307

10 3

59 1

231

696

818

2 44

0 55

167

320

025

Tiw

i Isla

nds S

hire

1 73

1 59

225

7 27

930

1 61

596

793

1 07

4 46

551

306

532

332

158

774

228

366

4 43

2 52

3

Mun

icip

ality

of P

alm

erst

on11

813

228

1 12

6 60

62

288

809

1 15

1 21

54

705

005

224

665

4 03

9 61

269

5 26

01

000

000

27 0

44 3

99

Mun

icip

ality

of L

itchfi

eld

7 20

5 13

176

8 57

91

631

017

741

523

3 20

9 79

015

3 26

82

878

648

474

312

682

207

17 7

44 4

76

Bely

uen

Shire

143

430

15 8

1715

860

7 97

766

057

3 15

427

991

9 76

114

040

304

088

Coom

alie

Shi

re58

2 36

374

672

128

147

50 4

9631

1 85

114

891

226

171

46 0

8266

281

1 50

0 95

4

Wag

ait S

hire

125

435

11 8

4424

966

12 5

5749

462

2 36

244

063

7 30

910

513

288

511

Wes

t Arn

hem

Shi

re4

336

857

682

241

872

735

263

854

2 84

9 21

913

6 05

11

540

325

421

030

605

572

11 7

07 8

84

East

Arn

hem

Shi

re6

888

129

1 40

7 92

01

831

047

385

036

5 87

9 84

728

0 76

43

231

690

868

867

1 24

9 70

022

023

000

Vict

oria

Dal

y Sh

ire4

582

123

852

515

1 11

1 58

926

8 39

53

560

326

170

006

1 96

1 88

952

6 11

075

6 71

013

789

665

Mun

icip

ality

of k

athe

rine

4 45

1 13

545

9 95

179

7 56

738

5 95

21

920

878

91 7

221

407

659

283

849

408

263

10 2

06 9

76

Rope

r Gul

f Shi

re4

712

015

910

661

1 18

0 48

826

8 85

33

803

161

181

602

2 08

3 49

156

1 99

480

8 32

214

510

587

Bark

ly S

hire

4 93

9 15

385

7 71

31

152

982

310

800

3 58

2 03

417

1 04

32

034

944

529

318

761

324

14 3

39 3

11

Mun

icip

ality

of A

lice

Sprin

gs12

619

886

1 44

8 91

02

434

107

1 06

9 00

26

051

033

288

938

4 29

6 05

489

4 16

31

286

084

30 3

88 1

76

Cent

ral D

eser

t Shi

re3

275

769

627

999

804

955

184

045

2 62

2 69

112

5 23

41

420

697

387

556

557

426

10 0

06 3

71

Mac

Donn

ell S

hire

4 87

9 65

295

3 85

81

236

523

276

983

3 98

3 56

519

0 21

62

182

389

588

653

846

665

15 13

8 50

4

Tota

l $1

01 5

07 2

26$1

3 20

6 10

8$2

1 68

1 79

3$8

425

641

$55

152

194

$2 6

33 5

31$3

8 26

7 08

0$8

149

856

$11

722

022

$260

745

451

* Fi

gure

s hav

e be

en ro

unde

d an

d di

scre

panc

ies m

ay o

ccur

bet

wee

n to

tals

and

the

sum

s of t

he co

mpo

nent

item

s.

31Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

SCHEDuLE 10National share of financial assistance grants 2011-12

State/Territory

General purpose

($)Share

%

Local road component

($)Share

%Total ($)

Share %

NSW 483 817 689 32.36% 192 499 113 29.01% 676 316 802 31.33%

Vic 371 730 998 24.86% 136 787 529 20.62% 508 518 527 23.56%

Qld 302 468 218 20.23% 124 313 618 18.74% 426 781 836 19.77%

WA 153 906 556 10.29% 101 448 513 15.29% 255 355 069 11.83%

SA 109 997 810 7.36% 36 463 239 5.50% 146 461 049 6.78%

Tas 33 945 908 2.27% 35 160 252 5.30% 69 106 160 3.20%

NT 15 332 751 1.03% 15 542 123 2.34% 30 874 874 1.43%

ACT 24 056 916 1.61% 21 275 077 3.21% 45 331 993 2.10%

Total $1 495 256 846 100% $663 489 464 100% $2 158 746 310 100%


32Annual Report

SCHEDuLE 11Visits to local governing bodies

Council Service delivery centre 2010-11 2009-10 2008-09 2007-08

Darwin City Council Darwin 27 Jun 08

Tiwi Islands Shire Council Nguiu 15 Oct 09

Pirlangimpi 14 Oct 09

Milikapiti 14 Oct 09

Ranku 15 Oct 09

City of Palmerston Palmerston

Belyuen Community Government Council Belyuen 08 Mar 11

Coomalie Community Government Council Coomalie 09 Mar 11

Wagait Shire Council Wagait/Cox Peninsula 08 Mar 11

Litchfield Council Litchfield 09 Mar 11

West Arnhem Shire Council Shire Office (Jabiru) 22 Sep 10

Maningrida 22 Sep 10

Gunbalanya 20 Sep 10

Minjilang 21 Sep 10

Warruwi 21 Sep 10

East Arnhem Shire Council Shire Office (Nhulunbuy) 10 Aug 09

Galiwinku 13 Aug 09

Gapuwiyak 14 Aug 09

Gunyangara (Marngarr) 14 Aug 09

Milyakburra 12 Aug 09

Milingimbi 13 Aug 09

Ramingining 12 Aug 09

Yirrkala 10 Aug 09

umbakumba 11 Aug 09

Angurugu 11 Aug 09

Victoria Daly Shire Council Daly River 25 Nov 08

Palumpa 26 Nov 08

Peppimenarti 26 Nov 08

Wadeye 27 Nov 08

Daguragu/kalkarindji 04 Mar 09

Timber Creek 04 Mar 09

Yarralin 05 Mar 09

Pine Creek 06 Mar 09

Katherine Town Council katherine 24 May 10 23 Aug 08

Binjari

33Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

SCHEDuLE 11 CONT.Visits to local governing bodies

Council/Shire Service delivery centre 2010-11 2009-10 2008-09 2007-08

Roper Gulf Shire Council Shire Office (katherine) 28 May 10

Borroloola

Numbulwar 27 May 10

Barunga 25 May 10

Wugularr (Beswick) 25 May 10

Bulman 27 May 10

Manyallaluk (Eva Valley) 25 May 10

Ngukurr 27 May 10

Mataranka 26 May 10

Jilkminggan 26 May 10

Barkly Shire Council Shire Office (Tennant Creek) 06 Apr 11 23 Sep 08

Elliott 06 Apr 11 23 Sep 08

Ampilatwatja 05 Apr 11 22 Sep 08

Ali Curung 07 Apr 11 25 Sep 08

Alpurrurulam 24 Sep 08

Arlparra (utopia) 05 Apr 11 22 Sep 08

Alice Springs Town Council Alice Springs 30 Jun 08

Central Desert Shire Council Nyirripi 22 Apr 09

Lajamanu

Yuendumu 22 Apr 09

Willowra

Ti-Tree 23 Apr 09

Laramba

Engawala

Atitjere (Harts Range) 21 Apr 09

Yuelamu 23 Apr 09

MacDonnell Shire Council Shire Office (Alice Springs) 05 Feb 10

Areyonga 04 Feb 10

Haasts Bluff 04 Feb 10

Imanpa 02 Feb 10

Docker River 03 Feb 10

Hermannsburg

Papunya 04 Feb 10

kintore 03 Feb 10

Wallace Rockhole

Amoonguna 01 Feb 10

Finke 02 Feb 10

Santa Teresa 02 Feb 10

Titjikala 01 Feb 10

Mount Liebig

Mutitjulu 03 Feb 10

34Annual Report

SCHEDuLE 11 CONT.Public hearings to councils

Council 2010-11 2009-10 2008-09 2007-08

Alice Springs Town Council 30 Jun 08

Darwin City Council 27 Jun 08

Katherine Town Council 24 May 10 23 Aug 08

Litchfield Council 09 Mar 11

City of Palmerston

35Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

Barkly Shire Council

Belyuen Community Government Council

Roper Gulf Shire Council

Tiwi Islands Shire Council

Victoria Daly Shire Council

Wagait Shire Council

SCHEDuLE 12Councils that failed to lodge 2009-10 annual financial statements by the date specified

Appendices

37Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

A. The national principles relating to the allocation of general purpose grants payable under section 6 of the Local Government (Financial Assistance) Act 1995 (the Act) among local governing bodies are as follows:

1. Horizontal equalisation

General purpose grants will be allocated to all local governing bodies, as far as practicable, on a full horizontal equalisation basis as defined by the Act. This is a basis that ensures that each local governing body in the state/territory is able to function, by reasonable effort, at a standard not lower than the average standard of other local governing bodies in the state. It takes account of differences in the expenditure required by those local governing bodies in the performance of their functions and in the capacity of those local governing bodies to raise revenue.

2. Effort neutrality

An effort or policy neutral approach will be used in assessing the expenditure requirement and revenue raising capacity of each local governing body. This means, as far as possible, policies of individual local governing bodies, in terms of expenditure and revenue effort, will not affect the grant determination.

3. Minimum grant

The minimum general purpose grant allocation for a local governing body in a year will not be less than the amount which the local governing body would be eligible to receive if 30 per cent of the total amount of general purpose grants to which the state/territory is entitled, under section 9 of the Act in respect of the year, was allocated among local governing bodies in the state/territory on a per capita basis.

4. Other grant support

Other relevant grant support provided to local governing bodies to meet any of the expenditure needs assessed should be taken into account using an inclusion approach.

5. Aboriginals and Torres Strait Islanders

Financial assistance shall be allocated to councils in a way which recognises the needs of Aboriginals and Torres Strait Islanders within their boundaries.

6. Council amalgamation

Where two or more local governing bodies are amalgamated into a single body, the general purpose grant provided to the new body for each of the four years following amalgamation should be the total of the amounts that would have been provided to the former bodies in each of those years, if they had remained separate entities.

B. The national principle relating to the allocation of the amounts payable under Section 12 of the Act (the identified road component of the financial assistance grants) among local governing bodies is as follows:

1. Identified road component

The identified road component of the Financial Assistance Grants should be allocated to local governing bodies as far as practicable on the basis of the relative needs of each local governing body for roads expenditure and to preserve its road assets. In assessing road needs, relevant considerations include length, type and usage of roads in each local governing area.

APPENDIx ANational principles for the allocation of general purpose and local road grants

38Annual Report

MethodologyIntroduction

The Northern Territory Grants Commission’s methodology conforms to the requirement for horizontal equalisation as set out in section 6 (3) of the Commonwealth Local Government (Financial Assistance) Act 1995.

The Commission, in assessing relative need for allocating general purpose funding, uses the balanced budget approach to horizontal equalisation based on the formula:

Assessed expenditure need – assessed revenue capacity = assessed equalisation requirement

The methodology calculates standards by applying cost adjustors and average weightings to assess each local government’s revenue raising capacity and expenditure need. The assessment is the Commission’s measure of each local government’s ability to function at the average standard in accordance with the national principles. Details regarding the national principles are at Appendix A.

PopulationFor the 2008-09 allocations the Commission resolved to use the latest ABS usual resident population figures and then adjusts the figures for estimated residency to align with the population total advised to Canberra from Northern Territory Treasury. The Northern Territory’s funding is based on this total population figure. The same rationale was used for the 2011-12 calculations.

Revenue raising capacityAs the ownership of the land on which many communities are located is vested in Land Trusts established pursuant to the Commonwealth Aboriginal Lands Rights (Northern Territory) Act 1976, it is not, for all intents and purposes, feasible to use a land valuation system solely as the means for assessing revenue raising capacity.

The collection of actual accurate financial data through the Commission’s annual returns enabled a number of revenue categories to be introduced, including rates where applicable, domestic waste, poll tax and interest.

In addition, to accord with the national principles, other grant support to local governing bodies by way of the Roads to Recovery, library and local roads grants is recognised in the methodology. In the case of recipients of the Roads to Recovery grants, 50 per cent of the grant was included. Recipients of library grants and local roads grants have the total amount of the grant included.

The Commission considers that, given unique circumstances within the Territory, this overall revenue raising capacity approach provides a reasonable indication of a council’s revenue raising capacity.

For the 2011-12 allocations, financial data in respect of the 2009-10 financial year was used.

Expenditure needs The assessment of standard expenditure is based on the Territory average per capita expenditure within the expenditure categories to which cost adjustors reflecting the assessed disadvantage of each local government are applied.

The Commission currently uses nine expenditure categories in accordance with the ABS Local Government Purpose Classifications.

Cost adjustorsThe Commission uses cost adjustors to reflect a local government’s demographics, geographical location, external access and the area over which it is required to provide local government services. All these influence the cost of service delivery. The cost adjustors used by the Commission for 2010-11 are shown at Schedule 2. There are three cost adjustors – location, dispersion and Aboriginality.

Minimum grantsFor most local governments, the assessed expenditure needs exceed the assessed revenue capacity, meaning there is an assessed need. In six cases, assessed revenue capacity is greater than assessed expenditure need, meaning that there is no assessed need. However, as the Commonwealth legislation requires that local governments cannot get less than 30 per cent of what they would have been allocated had the funding been distributed solely on the basis of population, six local government councils still receive a grant, or what is referred to as the minimum grant.

APPENDIx BMethodology and formula factors

39Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

2. Expenditure components

Total local government expenditure of $260 745 451 is apportioned over each expenditure component.

(a) General public services ($101 507 226)

Community population/Northern Territory population x general public services expenditure x Aboriginality

(b) Public order and safety ($13 206 108)

Community population/Northern Territory population x public order and safety expenditure x (location + dispersion + Aboriginality)

(c) Economic affairs ($21 681 793)

Community population/Northern Territory population x economic affairs expenditure x (location + dispersion)

(d) Environmental protection ($8 425 641)

Community population/Northern Territory population x environmental protection expenditure

(e) Housing and community amenities ($55 152 194)

Community population/Northern Territory population x Housing and Community Amenities expenditure x (location + dispersion + Aboriginality)

(f) Health ($2 633 531)

Community population/Northern Territory population x health expenditure x (location + dispersion + Aboriginality)

(g) Recreation, culture and religion ($38 267 080)

Community population/Northern Territory population x recreation, culture and religion expenditure x (location + dispersion)

(h) Education ($8 149 856)

Community population/Northern Territory population x education expenditure x (location + dispersion + Aboriginality)

(i) Social protection ($11 722 022)

Community population/Northern Territory population x social protection expenditure x (location + dispersion + Aboriginality)

Assessed revenue raising capacity = Total identified local government revenue

Total local government revenue = Assessed NT average revenue + other grant support + budget term

Formula1. Revenue component

Revenue category = Domestic waste, garbage, general rates, general rates other, special rates parking, special rates other, fines and interest

Domestic waste = Per capita

Garbage other = Actual

General rates = Average rate

Service charge = Per capita

Interest = Actual

State income by revenue category 2009-10 = Actual state local government gross income

Actual state local government gross income 2009-10 = $131 810 747

Other grant support = Roads to Recovery Grant 2010-11 (50%), Library Grant 2010-11 + Roads Grant 2010-11

Budget term Population x per capita amount

Total local government revenue for 2011-12 allocations = $260 745 541

Where:

All councils:

40Annual Report

3) Local road grant funding

To determine the local road grant, the Commission applies a weighting to each council by road length and surface type. These weightings are:

Expenditure Category Population Location Dispersion Aboriginality

Housing and community amenities

Public order and safety

Environmental protection

General public services

Social protection

Education

Health

Recreation, cultural and religion

Economic affairs

(Shaded areas indicate when cost adjustor applies)

Road Type Weighting

kerbed and sealed 10.0

Sealed 8.0

Gravel 4.0

Cycle path 2.0

Formed 1.0

unformed 0.4

Application of cost adjustors

41Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

APPENDIx CThe Australian Classification of Local Government (ACLG)

Step 1 Step 2 Step 3 Identifiers Category

URBAN (U) Capital City (CC) uCC

Population more than 20 000 Metropolitan developed (D)

Part of an urban centre of more than 1 000 000 or population density more than 600/sq km

Small (S) Medium (M) Large (L) Very Large (V)

up to 30 000 30 001-70 000 70 001-120 000 more than 120 000

uDS uDM uDL uDV

Or

Population density more than 30 persons per sq km

Regional Towns/City (R)

Part of an urban centre with population less than 1 000 000 and predominantly urban in nature


up to 30 000 30 001-70 000 70 001-120 000 more than 120 000

uRS uRM uRL uRV

Or

90% or more of LGA population is urban

Fringe (F)

A developing LGA on the margin of a developed or regional urban centre


up to 30 000 30 001-70 000 70 001-120 000 more than 120 000

uFS uFM uFL uFV

RURAL (R)

An LGA with population less than 20 000

Significant growth (SG)

Average annual population growth more than 3%, population more than 5 000 and not remote

Not applicable RSG

And

Population density less than 30 persons per sq km

Agricultural (A) Small (S) Medium (M) Large (L) Very Large (V)

up to 2 000 2 001-5 000 5 001-10 000 10 001-20 000

RAS RAM RAL RAV

And

Less than 90% of LGA population is urban

Remote (T) Extra Small (x) Small (S) Medium (M) Large (L)

up to 400 401-1 000 1 001-3 000 3 001-20 000

RTx RTS RTM RTL

42Annual Report

APPENDIx DNorthern Territory local governments by classification

CouncilACLG Classification

Barkly Shire Council RTL

Belyuen Shire Council RTx

Central Desert Shire Council RTL

Coomalie Shire Council RTM

City of Palmerston uFS

East Arnhem Shire Council RTL

Litchfield Council RAV

MacDonnell Shire Council RTL

Alice Springs Town Council uRS

Darwin City Council uCC

katherine Town Council uRS

Roper Gulf Shire Council RTL

Tiwi Islands Shire Council RTM

Victoria Daly Shire Council RTL

Wagait Shire Council RTx

West Arnhem Shire Council RTL

43Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

APPENDIx ENorthern Territory map of shire areas

West Arnhem Shire East Arnhem

Shire

Barkly Shire

Katherine

Coomalie Shire

Litchfield Municipality

Palmerston Municipality

Belyuen Shire

Wagait ShireDarwin Municipality

Municipality

Municipality ofAlice Springs

Central Desert Shire

MacDonnell Shire

Roper Gulf Shire

Tiwi IslandsShire

Victoria - Daly Shire

44Annual Report

APPENDIx FIndependent Auditor’s Report to the Minister for Local Government Northern Territory Grants Commission Year Ended 30 June 2011

I have audited the accompanying financial report of Northern Territory Grants Commission, which comprises the income statement, balance sheet, and accompanying notes to the financial statements for the year ended 30 June 2011.

The Accountable Officer’s responsibility for the Financial Report

The Accountable Officer of the Northern Territory Grants Commission is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Financial Management Act, and for such internal controls as management determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on the financial report based on my audit. I conducted my audit in accordance with Australian Auditing Standards. Those standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Accountable Officer, as well as evaluating the overall presentation of the financial report.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion the financial report presents fairly, in all material respects, the financial position of the Northern Territory Grants Commission as of 30 June 2011, and of its financial performance for the year then ended in accordance with Australian Accounting Standards and the Financial Management Act.

F McGuiness Auditor-General for the Northern Territory Darwin, Northern Territory

14 October 2011

45Annual Report

NO

RTH

ERN

TERR

ITOR

Y GR

AN

TS COM

MISSIO

N

Notes to and forming part of the financial statements are attached.

Statement by accountable officer

In my opinion:

(i) The accompanying income statement presents fairly Northern Territory Grants Commission’s transactions for the reporting year ended 30 June 2011.

The financial statements are based on proper accounts and records and are in agreement with the accounts and have been properly drawn up so as to present fairly the transactions of the Northern Territory Grants Commission for the reporting year ended 30 June 2011 and its financial position at that date.

(ii) The accompanying balance sheet presents fairly the Northern Territory Grants Commission’s state of affairs at the end of the reporting year; and

(iii) The financial statements are in accordance with applicable accounting standards.

Peter Thornton Accountable Officer

12 October 2011

NORTHERN TERRITORY GRANTS COMMISSIONBalance sheet as at 30 June 2011

2010 ($)

2011 ($)

Assets Nil Nil

Liabilities Nil Nil

Income statement for the year ended 30 June 2011

Income Nil Nil

Expenditure Nil Nil

Notes to and forming part of the financial statements for the year ended 30 June 2011.

1. The Commission was established under the provision of the Local Government Grants Commission Act, which came into operation on 1 July 1986, in order to comply with the requirements of the then Local Government (Financial Assistance) Act 1986.

2. The Commission’s activity is to make recommendations to the Minister for Local Government, in respect of the amounts of money to be allocated to local governing bodies from the money provided to the Territory under the Commonwealth’s Local Government (Financial Assistance) Act 1995.

Funds for this purpose were appropriated to the Northern Territory Department of Housing, Local Government and Regional Services. Allocations of general purpose grants and road grants recommended for distribution were:

3. The costs of operation of the Commission, which are met from the funds appropriated to the Department of Housing, Local Government and Regional Services, were $209 824.75 (2009-10: $183 697.47). An allowance has been made for the salary cost of administrative support provided by the Department of Housing, Local Government and Regional Services.

4. The Commission did not acquire any assets during the period covered by the financial statements.

Recommendation for distribution in 2010-11

Less advance payment of 2011-12 paid in 2010-11

Total recommendation for 2011-12

Recommendation for distribution in 2010-11

General Purpose Grants 15 332 751 3 817 631 11 515 120 14 833 353

Road Grants 15 542 123 3 863 110 11 679 013 14 993 953

Total $30 874 874 $7 680 741 $23 194 133 $29 827 306

The painting depicts the role of the Grants Commission as a transmitter of information, policy and funding recommendations. In the painting the members of the Grants Commission are depicted by the larger black horseshoe shapes. They are sitting facing the members of Local Government Councils, represented by the smaller black horseshoes in the north, south, east and west directions.

As can be seen the Grants Commission role is represented by two larger horseshoe shapes joined together. This representation shows the Grants Commission facing Councillors on the one hand, and the Northern Territory and Federal Governments (the centre circle with the white horseshoe shape) on the other. The smaller oblong shapes between the Commission and the Governments are provided by the artist to show the movement of the Commission visiting Councils and taking reports back to central government.

The larger oblong shapes between the Council groupings represent two areas of land. The upper ones depict native title area boundaries, and the lower ones depict Local Government area boundaries. The background is the ‘country’ within which all of these events take place.

Painting by Cr. Francis kelly, Past Member of NT Grants Commission

Account above is based on a conversation with Cr. kelly

northern territory grants commission · 2012. 2. 2. · northern territory grants commission 03...

Documents