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NorthernTerritoryGrantsCommission Annual Report 2017/18

Northern Territory Grants Commission Annual Report 2017/18 — iii

The Hon. Gerry McCarthy MLA Minister for Housing & Community Development 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 Northern Territory Grants Commission on its activities for 2017-18. Included in the report are the financial statements for the year ended 30 June 2018.

Yours sincerely

Dr David Ritchie Chair 9 October 2018

Foreword ................................................................................................................................................................ 3

The Northern Territory Grants Commission ........................................................................................................... 4

Background ...............................................................................................................................................................4

Relevant legislation ..................................................................................................................................................4

Organisation and People ......................................................................................................................................... 5

Membership ..............................................................................................................................................................5

Members’ profiles .....................................................................................................................................................6

Administration and staffing ......................................................................................................................................8

Summary of Activities 2017/18 ............................................................................................................................... 9

Executive Officers’ meeting ......................................................................................................................................9

Visits/Public hearings to local governing bodies .....................................................................................................9

Financial data............................................................................................................................................................9

Annual financial statements .....................................................................................................................................10

Submissions ..............................................................................................................................................................10

Payments 2017-18 ....................................................................................................................................................10

Estimated entitlement 2018-19 ................................................................................................................................10

Entitlement 2017-18 .................................................................................................................................................10

Cash entitlement 2018-19 ........................................................................................................................................10

Communication with councils ..................................................................................................................................11

Council letters of advice ...........................................................................................................................................11

Revenue and expenditure assessments of local governments................................................................................11

Recommendations .................................................................................................................................................. 12

Chairman’s letter ................................................................................................................................................................................................. 12

Recommendation Schedule 2018-19 .......................................................................................................................................................... 15

1 — Contents

Contents

Schedules ............................................................................................................................................................... 16

Schedule 1 — Population 2018-19 ............................................................................................................................16

Schedule 2 — Cost adjustors and key drivers 2018-19 ............................................................................................17

Schedule 3 — Road lengths 2018-19 ........................................................................................................................18

Schedule 4 — Reconciliation of local government income and expenditure ...........................................................19

Schedule 5 — Local government income 2016-17 ................................................................................................... 20

Schedule 6 — Actual local government expenditure 2016-17 ................................................................................. 21

Schedule 7 — Assessed revenue 2016-17 ................................................................................................................ 22

Schedule 8 — Summary standardised revenue ....................................................................................................... 23

Schedule 9 — Standardised expenditure ................................................................................................................. 24

Schedule 10 — National share of financial assistance grants 2018-19................................................................... 25

Schedule 11 — Visits/Public hearings to local governing bodies ............................................................................ 25

Schedule 12 — Schedule of local governing bodies who failed to lodge their 2016-17 annual financial

statements by the date specified ..................................................................................................... 28

Appendices ............................................................................................................................................................. 29

Appendix A — National principles for the allocation of general purpose and local road grants ............................ 29

Appendix B — Methodology and formula factors ..................................................................................................... 30

Appendix C — The Australian Classification of Local Government (ACLG) ............................................................. 35

Appendix D — Northern Territory local governments by classification .................................................................. 36

Appendix E — Northern Territory map of local government areas ......................................................................... 37

Appendix F — Auditor-General Independent Auditor’s Report to the Minister for Housing and Community Development Northern Territory Grants Commission Year Ended 30 June 2018 ........................... 38

Appendix G — Auditor-General Independent Auditor’s Report to the Chief Executive of the Department of Housing and Community Development on the Statement of Payments made to Local Governing Bodies by the Northern Territory during the year 1 July 2017 to 30 June 2018 .......................................... 41

Northern Territory Grants Commission Annual Report 2017/18 — 2

I am pleased to present the 32nd annual report of the Northern Territory Grants Commission. This report contains information on the distribution of funding provided to the Northern Territory’s local governing bodies under the Commonwealth’s Local Government (Financial Assistance) Act 1995, as well as details on the objectives, performance and future directions of the Commission. The report contains information on programs and performance during the year to assist public understanding and scrutiny of the Commission’s operations and functioning.

The major focus for the Commission is to determine general purpose and local roads grants for each Northern Territory Local Government council. The Commonwealth’s May 2018 budget, indicated that there would be again, a brought forward payment. Consequently $17 263 910 of the 2018-19 grants were brought forward and paid to councils in June 2018.

The Commission is required to distribute all funding on the basis of resident population, as determined by the ABS. The latest available ABS estimate of resident population as at 30 June 2017 (released 28 April 2018) revealed that 10 out of 17 councils experienced decreases in their population count. These decreases had a direct negative consequence for the amount of grant funding available to affected councils. To manage risks generated by this situation, the Commission introduced a financial “buffer” to those councils most seriously affected.

The following is discussed in greater detail in the “Summary of Activities 2017-18” section of the report.

• National Conference

• Executive Officers’ Conference; and

• Visits and Public Hearings

On behalf of the current 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 Ms Donna Hadfield, Local Government and Community Development Division of the Department of Housing and Community Development, combined with the assistance, and services provided by the Department’s regional offices.

I would also like to acknowledge the efforts of my colleagues Ms Meeta Ramkumar, Mr Damien Ryan and Mr Steven Hennessy. Their assistance has been very much appreciated.

Dr David Ritchie Chairman

3 — Foreword

Foreword

Background

On 1 July 1986, the Australian 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 Australian Government Minister for Local Government, 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 repeated a requirement from an earlier Act that each state and the Northern Territory 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, in June 1986.

Role of the Northern Territory Grants Commission

The 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 Australian Government for Northern Territory local governing bodies in the form of general purpose grants and local roads grants.

Relevant Legislation

The Northern Territory’s Local Government Grants Commission Act also provides for the appointment of Commission members, and specifies the general operations of the Commission, including the annual reporting requirements.

The Australian Government’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 Australian Government 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.


The Commission

Membership

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

• a Chairman appointed by the Minister;

• the Chief Executive (CE) of the agency primarily responsible to the Minister for the administration of the Act, or their delegate, and

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

In 2017-18, the members of the Commission were:

Dr David Ritchie Chairman – appointed 21 December 2016 to 20 December 2020

Mr David Alexander CE’s delegate – appointed 16 May 2017 to 01 August 2017

Ms Meeta Ramkumar CE’s delegate – appointed 02 August 2017

Mr Damien Ryan Representing municipal councils – appointed 1 September 2011 to 31 August 2017 28 September 2017 to 31 March 2018 10 May 2018 to 31 August 2021

Mr Steven Hennessy Representing regional councils – appointed 11 May 2010 to 31 August 2019

Ms Kylie Bonanni Deputy for Mr Ryan – appointed 27 March 2014 until 31 August 2017

Ms Christina Miller Deputy for Mr Ryan – appointed 10 May 2018 to 31 August 2021

Ms Narelle Bremner Deputy for Mr Hennessy – appointed 25 October 2016 until 31 August 2019

Ms Jocelyn Nathanael-Walters Deputy for Ms Meeta Ramkumar appointed – 02 August 2017

In 2017-18, the Accountable Officer of the Commission was:

Ms Donna Hadfield Accountable Officer – acted in position from 01 May 2017 and officially appointed 20 July 2017

5 — Organisation and people

Organisation and people

Members’ Profiles

David Ritchie

David has worked in professional and executive roles in the public and not for profit sectors in the Northern Territory since 1981. For more than 20 years he held the position of chief executive. This role included:

• Department of Lands and Planning and Northern Territory Land Development Corporation (2009 - 2012)

• Department of Housing, Local Government and Sport (2008 - 2009)

• Department of Natural Resources, Environment and the Arts (2005 - 2008)

• Aboriginal Areas Protection Authority (1990 - 2003).

Other executive roles include Director of Parks and Wildlife and Department of Infrastructure, Planning and Environment Natural Resource Management Division Executive Director (2003 - 2005).

David also worked in professional roles as an anthropologist in statutory bodies responsible for administering the Northern Territory’s Indigenous cultural heritage and land rights laws including the Northern Land Council, Museum and Art Gallery of the Northern Territory and the Aboriginal Sacred Sites Authority.

His present positions include Director Ninti One Limited, board member Northern Territory Land Corporation, member of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory and Chair of the Northern Territory Planning Commission.

Damien Ryan

Damien was born in Alice Springs. He commenced his business career in 1972, working in the retail photographic industry. He gained invaluable knowledge of the tourism industry as licensee of Mount Ebenezer and Dunmarra roadhouses. His experiences include directorships of the following companies in the Northern Territory: Alice Springs Camera Shop Pty Ltd, Dajon Agencies Pty Ltd, Mt. Ebenezer Investments Pty Ltd and Dunmarra Roadhouse.

Damien is a lateral thinker, and enjoys applying his analytical and problem solving skills to achieve successful outcomes to a wide variety of situations.

Damien is the Mayor of Alice Springs, a graduate of the Australian Institute of Company Directors, and a Justice of the Peace.

Other positions Damien holds include; President of the Local Government Association Northern Territory (LGANT) and Vice President of the Australian Local Government Association (ALGA). He is involved in many organisations that work toward the sustainable development and advancement of Alice Springs and the Northern Territory. These include the Deputy Chair - Outback Highway Development Council and Chair - Alice Springs Alcohol Reference Group.

Damien and his wife Joanne have three daughters who live in Alice Springs.


Steven Hennessy

Steven 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 southeast 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, 300kms south-west of Katherine, in 2005.

Steven became a councillor for the Victoria Daly Shire Council in October 2008, Deputy Mayor from October 2011 until October 2013, Acting Mayor up until July 2014 after which time he became the Mayor. Steve stepped down as Mayor in August 2016.

During his tenure he was a delegate of the Local Government Association of the Northern Territory. Steve was also involved in a number of local government related organisations, including the NT Heritage Council, the National Local Government Drug and Alcohol Advisory Council, the NT Water Safety Advisory Committee. He also has his own general maintenance small business, and is renovating an old railway house in Larrimah. His hobbies include golf and history.

Kylie Bonanni

Kylie Bonanni moved to Alice Springs from Ballarat, Victoria in 1988 when her father became the gold room manager at Granites Mine. She has worked in the building industry alongside her husband in the family business and has been involved in many aspects of Alice Springs community life, particularly as her three children were growing up.

She is the ambassador coordinator for the Masters Games and is also on the Masters Games Steering Committee as well as a Board member for Tourism NT. Kylie is Deputy Chair of the council’s Development Committee.

Kylie would like to see more growth and business opportunities in Alice Springs. She is also focused on senior citizens and ensuring they continue to be looked after and is a strong believer in looking at the positives in our community.

Councillor Bonanni was a member of the Alice Springs Town Council from November 2013 and resigned whilst Deputy Mayor on 23 July 2015.

7 — Organisation and People

Christina (Fay) Miller

Fay and her family came to Katherine in December 1989 for a planned 4 year stay. Within this time the family knew Katherine was to be their home.

Fay has been deeply involved in the Tourism industry as both an operator and now as a passionate advocate for this vital Katherine industry.

Fay believes that wherever you live you must take responsibility for the growth and development of that community at whatever level you are capable; be it a sporting association, community organisation, business development or local government. Fay has always strived to that end.

Fay is currently the Mayor of Katherine Town Council.

Narelle Bremner

Narelle is a long term resident of Tennant Creek having been raised and attending school in the town. She has a bachelor of social work and has worked in the area of child trauma, sexual assault and domestic violence.

Narelle has a strong commitment to community wellbeing and regional development. Having served on a number of boards including the Tennant Creek Hospital Board and the Tennant Creek Women’s Refuge Board. Narelle is currently an elected Councillor for the Barkly Regional Council.

Administration and Staffing

The costs of operation of the Commission for the year were met by funds appropriated to the Department of Housing and Community Development. The operational expenditure for 2017-18 was $117 580.62 compared to $245 296.34 in 2016-17.

The Executive Officer, Mrs Donna Hadfield of the Department of Housing and Community Development coordinated the visitation program and assisted with the Commission’s activities through the provision of executive support.


The National Conference of Local Government Grants Commissions was held at the Crowne Plaza Hotel, Adelaide, South Australia, from 30 to 31 October 2017.

The forum was officially opened by Mr Geoff Brock MP, Minister for Regional Development and Local Government followed by papers presented by Ms Lorraine Rosenberg, President, Local Government Association (SA), Ms Elizabeth Bennett, A/General Manager, Department of Infrastructure and Regional Development, Ms Alison Harper, Director, Commonwealth Grants Commission

Delegates and partners also participated in the official conference dinner at the Crowne Plaza Hotel. Executive Officers’ meeting

Following the National Conference the Department of Infrastructure and Regional Development facilitated an Executive Officers’ Workshop on 31 October 2017

Key items on the agenda included:

• Calculating grants – initial and final estimates;

• Commonwealth data requirements and templates;

• Census population data and impacts on future allocations;

• Advance payment errors; and

• Appointment process of grants commission members and perceived conflicts of interest.

Visits to local governing bodies

The rolling visitation program on a regional and municipal basis continued in 2017-18 with the Commission having conducted visits to the East Arnhem Regional Council for a meeting with the council on Groote Eylandt and the Barkly Regional Council including three respective communities.

The program of Commission visits is done on a cyclical basis and takes three years to complete, although special circumstances may warrant departures from the pre-planned program. In 2018-19 the Commission intends to re-establish the preferred number of visits to council to at least three per year.

Financial data

The total revenue and expenditure of councils in the 2016-17 financial year amounted to $511 million and $467 million respectively. Included in these amounts were revenues and expenditures not considered to relate strictly to local government. Thus, for the 2018-19 allocations, the Commission determined local government income to be $210.445 million and local government expenditure to be $316.883 million.

The presentation of financial information via the Commission’s annual return for all councils was achieved mid December 2017.

The data collected in these returns is used by the Commission to allow 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. The Australian Bureau of Statistics in its local government financial statistics and national accounts also uses this data.

9 — Summary of Activities in 2017-18

Summary of Activitiesin 2017-18

Annual audited financial statements

Regulation 17 of the Local Government (Accounting) Regulations stipulates that a copy of councils’ audited annual financial statements be forwarded to the Chairman of the Northern Territory Grants Commission no later than 15 November each year. For financial year 2016-17, four councils failed to lodge their annual financial statements by the date specified. These councils are listed in Schedule 12. Submissions

No submissions were presented to the Commission at its visits/public hearings during the year. Payments 2017-18

During 2017-18, grants continued to be paid in quarterly installments in addition there was an early payment brought forward in June 2018. The total payments to local governing bodies during the year are summarised below:

15 August 2017 $4 196 491

15 November 2017 $4 196 491

15 February 2018 $4 196 491

15 May 2018 $4 196 495

20 June 2018 $17 263 910

Total distribution of 2017-18 payments

$34 049 878

Estimated entitlement 2018-19

The Commonwealth allocates the general purpose and local road 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 2018-19 are $16 901 357 and $17 692 420 respectively.

Entitlement 2017-18

The Australian Government’s estimate of the Territory’s share of the national population was less than the actual population. This resulted in the entitlement for 2017-18 being under-estimated by $204 429. The adjustment comprised an underpayment of $206 654 (general purpose) and an overpayment of $2 225 (local roads). The 2018-19 council payments have been adjusted by these amounts based on the data used for the distribution of the estimated entitlement for 2017-18.

Cash entitlement 2018-19

The cash entitlement for 2018-19 is the estimated entitlement for the year plus the underpayment for general purpose and less the overpayment for roads in 2017-18.


Communication with councils

In 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 2017-18 general purpose and local road grants

15 August 2017

Letter (electronically) advising the requirement to lodge an annual return

08 November 2017

Commission’s Annual Report available on web

08 December 2017

Letter (electronically) advising the requirement to lodge an annual road return

24 January 2018

Letters advising of the brought forward payment of the 2017-18 general purpose and roads grants

20 June 2018

Council letters of advice

Letters of advice in 2017-18 provided the following comprehensive information to councils:

i. A sheet detailing the council’s grant allocations and payment schedule for 2017-18;

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 adjustors against the various expenditure categories;

iv. A bar chart showing the cost adjustors 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 2017-18;

vi. A grant trend chart of the council’s grants over five years; and

vii. A sheet showing the 2017-18 grant allocations for all Northern Territory councils.

A similar package will be provided to each council for the 2018-19 year, and this process will continue into the future.

Revenue and expenditure assessments of local governments

Revenue 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.

11 — Summary of Activities in 2017-18

Recommendations


Estimated Entitlement

The Commonwealth allocates the general purpose and local road 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 $16 901 357 and $17 692 420 respectively.

Cash Adjustment

The Commonwealth has advised that there is a total underpayment of $204 429 in relation to the 2017-18 grants. The underpayments comprises an underpayment of $206 654 (general purpose) and an overpayment of $2 225 (local roads).

General Comments

When the grants were calculated for this year using the Australian Bureau of Statistic 2016 census, estimated resident population data, it was apparent that a number of councils where effected by population decreases. A total of 8 regional councils and the municipal councils of Katherine and Alice Springs all experienced decreases in population.

Previously the methodology had quarantined $200 000 to assist the Katherine and Alice Springs municipal councils with the financial imposts placed on them due to the high levels on non-resident usage on councils services and infrastructure.

Using this same methodology 7 councils would have received losses in grant outcomes even though the overall amount of funding available had increased. The Commission was of the belief that some losses particularly those effecting the councils of Tiwi, Katherine, Victoria Daly and Barkly were excessive for the councils to absorb in the year. Therefore the Commission decided it was difficult to justify the continuance of quarantining funds whilst at the same time provide a buffer on losses for other councils as a result of the population decreases.

The Commission therefore abolished the quarantined funds to the Alice Springs and Katherine councils and implemented a loss assist factor into the 2018-19 methodology. The rationale for implementing the loss assist factor was that it was only applied to councils that stood to receive a loss greater than 5% in grant funding. A total of 6 councils benefited from the loss assist parameter which totalled $355 974.

13 — Recommendations

Estimated Entitlement

The Commonwealth allocates the general purpose and local road 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 $16 901 357 and $17 692 420 respectively.

Cash Adjustment

The Commonwealth has advised that there is a total underpayment of $204 429 in relation to the 2017-18 grants. The underpayments comprises an underpayment of $206 654 (general purpose) and an overpayment of $2 225 (local roads).

General Comments

When the grants were calculated for this year using the Australian Bureau of Statistic 2016 census, estimated resident population data, it was apparent that a number of councils where effected by population decreases. A total of 8 regional councils and the municipal councils of Katherine and Alice Springs all experienced decreases in population.

Previously the methodology had quarantined $200 000 to assist the Katherine and Alice Springs municipal councils with the financial imposts placed on them due to the high levels on non-resident usage on councils services and infrastructure.

Using this same methodology 7 councils would have received losses in grant outcomes even though the overall amount of funding available had increased. The Commission was of the belief that some losses particularly those effecting the councils of Tiwi, Katherine, Victoria Daly and Barkly were excessive for the councils to absorb in the year. Therefore the Commission decided it was difficult to justify the continuance of quarantining funds whilst at the same time provide a buffer on losses for other councils as a result of the population decreases.

The Commission therefore abolished the quarantined funds to the Alice Springs and Katherine councils and implemented a loss assist factor into the 2018-19 methodology. The rationale for implementing the loss assist factor was that it was only applied to councils that stood to receive a loss greater than 5% in grant funding. A total of 6 councils benefited from the loss assist parameter which totalled $355 974.

15 — Recommendations

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

Schedule 1

Population used for the 2018-19 allocations

Council Population

Alice Springs Town Council 26 743

Barkly Regional Council 7 507

Belyuen Community Government Council 178

Central Desert Regional Council 4 241

City of Darwin 84 566

City of Palmerston 36 578

Coomalie Community Government Council 1 428

East Arnhem Regional Council 10 402

Litchfield Council 25 423

MacDonnell Regional Council 6 838

Municipality of Katherine 10 572

Roper Gulf Regional Council 7 478

Tiwi Islands Regional Council 2 797

Victoria Daly Regional Council 3 207

Wagait Shire Council 507

West Arnhem Regional Council 7 008

West Daly Regional Council 3 678

TOTAL 239 151

Northern Territory Grants Commission Annual Report 2017/18 — 16 16 — Schedules

Schedules


Schedule 2

Cost adjustors and key drivers 2018-19

Council Location DispersionIndigenous background

Alice Springs Town Council 1.12 1.03 1.18

Barkly Regional Council 1.14 1.68 1.68

Belyuen Community Government Council 1.00 1.03 1.98

Central Desert Regional Council 1.14 2.00 1.84

City of Darwin 1.00 1.03 1.07

City of Palmerston 1.00 1.03 1.11

Coomalie Community Government Council 1.00 1.29 1.24

East Arnhem Regional Council 1.27 2.00 1.94

Katherine Town Council 1.03 1.03 1.22

Litchfield Council 1.00 1.13 1.10

MacDonnell Regional Council 1.15 2.00 1.82

Roper Gulf Regional Council 1.13 2.00 1.80

Tiwi Islands Regional Council 1.12 1.42 1.89

Victoria Daly Regional Council 1.06 1.55 1.65

Wagait Shire Council 1.00 1.03 1.09

West Arnhem Regional Council 1.09 1.55 1.77

West Daly Regional Council 1.10 1.29 1.91


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Schedule 3

Road lengths 2018-19


Schedule 4

Reconciliation of local government income and expenditure

Reconciliation of actual revenue and expenditure as supplied by local governing bodies 2016-17

Actual revenue 2016-17 $

Rates and annual charges 175 635 950

Fines and penalties 2 477 419

Grants and subsidies 225 038 495

Fuel rebate 464 212

User fees and charges 25 407 077

Interest income 8 312 985

Profit on sale of assets 127 435

Other current revenue (n.e.c) 46 367 101

Other capital revenue 1 907 144

Assets acquired without cost or below fair value

25 408 920

Total actual revenue 2016-17 $511 146 738


Actual expenditure 2016-17 $

Employee expenses 186 735 869

Materials and contracts 145 615 125

Depreciation 85 542 611

Bad debts 379 190

Current transfers expenses 1 408 754

Interest 417 582

Other expenses 47 115 097

Total actual expenditure 2016-17 $467 214 228* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.

Identified local government revenue

$

General rates-municipal levied 115 606 456

Domestic waste 29 201 737

Garbage other 15 663 056

Regional and shire council rates 18 520 727

Parking 1 034 380

Interest 8 312 985

Total identified local government revenue

$188 339 341


Identified local government expenditure

$

General public service 113 027 693

Public order and safety 18 892 202

Economic affairs 45 843 161

Environment protection 17 333 343

Housing and community amenities 42 097 825

Health 3 469 502

Recreation, culture and religion 51 302 627

Education 584 985

Social protection 24 331 725

Total identified local government expenditure

$316 883 063


Balanced budget approach used for the 2018-19 allocations $

Identified local government revenue 188 339 341

50% Roads to Recovery grants 2017-18 2 558 632

Library grants 2017-18 4 019 500

Road grants 2017-18 15 527 560

Budget term 106 438 030

Total revenue $316 883 063

Identified local government expenditure $316 883 063

Total expenditure $316 883 063* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.


Schedule 5

Actual local government income 2016-17

Cou

ncil

Mun

icip

al

rate

s (l

evie

d)

$

Dom

esti

c w

aste

$

Gar

bage

ot

her

$

Reg

iona

l cou

ncil

rate

s (l

evie

d)

$In

tere

st

$

Par

king

re

stri

cted

$

Tota

l $

Alic

e Sp

ring

s To

wn

Cou

ncil

21 5

36 8

203

610

000

2 65

5 00

00

1 28

0 00

00

29 0

81 8

20

Bar

kly

Reg

iona

l Cou

ncil

079

6 00

00

2 75

5 11

510

4 00

00

3 65

5 11

5

Bel

yuen

Com

mun

ity

Gov

ernm

ent C

ounc

il0

43 7

450

45 2

4455

089

044

Cen

tral

Des

ert R

egio

nal C

ounc

il0

998

637

01

628

805

242

265

02

869

707

City

of D

arw

in

60 8

36 5

956

762

094

12 4

35 5

440

2 21

9 14

21

034

380

83 2

87 7

55

City

of P

alm

erst

on20

115

821

6 64

1 59

20

01

120

762

027

878

175

Coo

mal

ie C

omm

unity

G

over

nmen

t Cou

ncil

024

3 17

011

5 72

294

0 01

648

665

01

347

573

East

Arn

hem

Reg

iona

l Cou

ncil

02

420

055

45 6

903

432

763

761

537

06

660

045

Kat

heri

ne T

own

Cou

ncil

6 19

0 02

91

034

377

00

393

444

07

617

850

Litc

hfiel

d C

ounc

il6

927

191

2 66

7 74

541

1 10

00

812

587

010

818

623

Mac

Don

nell

Reg

iona

l Cou

ncil

083

7 88

00

1 73

8 37

054

8 72

20

3 12

4 97

2

Rop

er G

ulf R

egio

nal C

ounc

il0

718

410

01

587

897

229

323

02

535

630

Tiw

i Isl

ands

Reg

iona

l Cou

ncil

050

3 49

70

902

680

32 9

660

1 43

9 14

3

Vict

oria

Dal

y R

egio

nal C

ounc

il0

520

928

054

5 16

689

411

01

155

505

Wag

ait S

hire

Cou

ncil

012

5 42

70

221

622

8 77

80

355

827

Wes

t Arn

hem

Reg

iona

l Cou

ncil

085

6 34

60

3 94

8 45

031

8 61

10

5 12

3 40

7

Wes

t Dal

y R

egio

nal C

ounc

il0

421

834

077

4 59

910

2 71

70

1 29

9 15

0

Tota

l$

115

606

456

$29

201

737

$15

663

056

$18

520

727

$8

312

985

$1

034

380

$18

8 33

9 34

1

* Fi

gure

s ha

ve b

een

roun

ded

and

disc

repa

ncie

s m

ay o

ccur

bet

wee

n to

tals

and

the

sum

s of

the

com

pone

nt it

ems.


Schedule 6

Actual council expenditure by function 2016-17

Cou

ncil

Econ

omic

af

fair

s

$Ed

ucat

ion

$

Envi

ronm

enta

l pr

otec

tion

$

Gen

eral

pub

lic

serv

ices

$

Hea

lth

$

Hou

sing

and

co

mm

unit

y am

enit

ies

$

Pub

lic o

rder

an

d sa

fety

$

Rec

reat

ion,

cu

ltur

e an

d re

ligio

n

$

Soci

al

prot

ecti

on

$To

tal

$

Alic

e Sp

ring

s To

wn

Cou

ncil

2 56

7 25

64

000

5 09

5 35

917

687

803

01

302

740

1 27

2 90

27

682

424

6 51

635

619

000

Bar

kly

Reg

iona

l Cou

ncil

900

000

015

6 81

211

228

753

490

388

5 58

7 65

72

277

586

2 43

8 27

91

961

525

25 0

41 0

00

Bel

yuen

Com

mun

ity

Gov

ernm

ent C

ounc

il77

9 73

70

050

7 43

90

497

768

011

3 35

126

6 31

72

164

612

Cen

tral

Des

ert R

egio

nal C

ounc

il6

128

840

01

013

087

10 6

68 6

263

277

8 10

0 09

13

889

124

1 14

5 59

65

159

623

36 1

08 2

64

City

Of D

arw

in13

605

691

051

4 55

139

529

377

229

548

22 6

97 6

185

141

481

23 9

09 6

100

105

627

876

City

Of P

alm

erst

on8

709

840

07

221

376

8 53

8 86

70

1 12

4 18

194

6 75

49

135

464

69 5

9935

746

081

Coo

mal

ie C

omm

unity

Gov

ernm

ent C

ounc

il83

9 30

10

300

997

808

186

054

680

20 8

2254

3 94

00

2 56

7 92

6

East

Arn

hem

Reg

iona

l Cou

ncil

10 6

91 8

920

624

691

13 1

81 6

470

5 11

3 64

83

242

233

3 17

4 69

75

202

661

41 2

31 4

69

Kat

heri

ne T

own

Cou

ncil

3 23

0 00

90

1 04

0 29

52

500

898

035

1 38

119

4 04

11

804

382

09

121

006

Litc

hfiel

d C

ounc

il20

636

675

12 0

002

734

767

3 43

4 51

10

040

9 63

32

552

243

029

779

829

Mac

Don

nell

Reg

iona

l Cou

ncil

3 46

7 38

40

89 8

2821

180

269

481

222

1 24

1 77

01

053

264

264

231

4 67

3 81

632

451

784

Rop

er G

ulf R

egio

nal C

ounc

il2

273

198

422

002

59 5

7115

664

600

05

732

669

01

250

697

9 23

4 51

634

637

253

Tiw

i Isl

ands

Reg

iona

l Cou

ncil

2 94

3 72

919

5 66

87

660

9 28

4 92

036

608

1 30

2 61

478

1 83

645

6 35

970

0 32

715

709

721

Vict

oria

Dal

y R

egio

nal C

ounc

il4

601

527

00

12 1

79 6

221

790

527

1 14

0 45

80

750

132

1 92

3 21

722

385

483

Wag

ait S

hire

Cou

ncil

146

432

090

176

452

901

00

00

068

9 50

9

Wes

t Arn

hem

Reg

iona

l Cou

ncil

4 61

6 85

927

158

1 09

7 33

89

032

076

151

213

3 89

3 47

61

015

455

4 03

3 93

61

825

779

25 6

93 2

90

Wes

t Dal

y R

egio

nal C

ounc

il45

9 07

531

381

109

082

6 90

7 94

11

959

679

1 23

3 55

41

141

054

798

359

012

640

125

TOTA

L$

86 5

97 4

45$

692

209

$20

155

590

$18

2 78

8 43

6$

5 14

2 46

2$

59 3

74 3

05$

21 3

86 1

85$

60 0

53 7

00$

31 0

23 8

96$

467

214

228

* Fi

gure

s ha

ve b

een

roun

ded

and

disc

repa

ncie

s m

ay o

ccur

bet

wee

n to

tals

and

the

sum

s of

the

com

pone

nt it

ems.


Schedule 7

Assessed revenue 2016-17

Cou

ncil

Dom

esti

c

was

te

$G

arba

ge o

ther

$

Mun

icip

al r

ates

$

Reg

iona

l co

unci

l rat

es

$

Par

king

re

stri

cted

$

Inte

rest

$

Tota

l ass

esse

d re

venu

e

$

Alic

e Sp

ring

s To

wn

Cou

ncil

3 26

5 47

72

655

000

11 8

04 9

770

01

280

000

19 0

05 4

54

Bar

kly

Reg

iona

l Cou

ncil

916

649

00

2 51

5 60

70

104

000

3 53

6 25

6

Bel

yuen

Com

mun

ity

Gov

ernm

ent C

ounc

il21

735

00

59 6

480

5581

438

Cen

tral

Des

ert R

egio

nal C

ounc

il51

7 85

10

01

421

166

024

2 26

52

181

282

City

of D

arw

in10

326

004

12 4

35 5

4462

313

887

01

034

380

2 21

9 14

288

328

957

City

of P

alm

erst

on4

466

388

019

314

822

00

1 12

0 76

224

901

972

Coo

mal

ie C

omm

unity

G

over

nmen

t Cou

ncil

174

367

115

722

047

8 52

50

48 6

6581

7 27

9

East

Arn

hem

Reg

iona

l Cou

ncil

1 27

0 14

545

690

03

485

726

076

1 53

75

563

098

Kat

heri

ne T

own

Cou

ncil

1 29

0 90

30

3 15

1 58

20

039

3 44

44

835

929

Litc

hfiel

d C

ounc

il3

104

297

411

100

19 0

21 1

880

081

2 58

723

349

172

Mac

Don

nell

Reg

iona

l Cou

ncil

834

960

00

2 29

1 42

40

548

722

3 67

5 10

6

Rop

er G

ulf R

egio

nal C

ounc

il91

3 10

80

02

505

889

022

9 32

33

648

320

Tiw

i Isl

ands

Reg

iona

l Cou

ncil

341

530

00

937

279

032

966

1 31

1 77

5

Vict

oria

Dal

y R

egio

nal C

ounc

il39

1 59

30

01

074

671

089

411

1 55

5 67

5

Wag

ait S

hire

Cou

ncil

61 9

080

016

9 89

60

8 77

824

0 58

2

Wes

t Arn

hem

Reg

iona

l Cou

ncil

855

718

00

2 34

8 39

20

318

611

3 52

2 72

0

Wes

t Dal

y R

egio

nal C

ounc

il44

9 10

50

01

232

503

010

2 71

71

784

326

TOTA

L$

29 2

01 7

37$

15 6

63 0

56$

115

606

456

$18

520

727

$1

034

380

$8

312

985

$18

8 33

9 34

1

* Fi

gure

s ha

ve b

een

roun

ded

and

disc

repa

ncie

s m

ay o

ccur

bet

wee

n to

tals

and

the

sum

s of

the

com

pone

nt it

ems.


Schedule 8

Summary standardised revenue 2016-17

* Fi

gure

s ha

ve b

een

roun

ded

and

disc

repa

ncie

s m

ay o

ccur

bet

wee

n to

tals

and

the

sum

s of

the

com

pone

nt it

ems.

Cou

ncil

Ass

esse

d N

T av

erag

e re

venu

e

$

2017

-18

Roa

ds

to R

ecov

ery

$

2017

-18

Libr

ary

gr

ant

$

2017

-18

Roa

ds

gran

t $

Bud

get

term

$

Tota

l st

anda

rdis

ed

reve

nue

$

Alic

e Sp

ring

s To

wn

Cou

ncil

19 0

05 4

5416

2 80

560

6 88

893

2 65

311

902

406

32 6

10 2

05

Bar

kly

Reg

iona

l Cou

ncil

3 53

6 25

646

265

183

998

444

253

3 34

1 11

27

551

884

Bel

yuen

Com

mun

ity G

over

nmen

t Cou

ncil

81 4

385

656

032

367

79 2

2219

8 68

2

Cen

tral

Des

ert R

egio

nal C

ounc

il2

181

282

146

655

89 6

9983

8 88

81

887

526

5 14

4 04

9

City

of D

arw

in

88 3

28 9

5731

2 05

81

506

051

1 82

7 22

837

637

469

129

611

763

City

of P

alm

erst

on24

901

972

134

595

581

756

881

955

16 2

79 6

3242

779

910

Coo

mal

ie C

omm

unity

Gov

ernm

ent C

ounc

il81

7 27

969

223

51 7

4844

3 21

663

5 55

52

017

021

East

Arn

hem

Reg

iona

l Cou

ncil

5 56

3 09

819

9 55

321

8 49

81

217

393

4 62

9 57

911

828

121

Kat

heri

ne T

own

Cou

ncil

4 83

5 92

910

7 54

025

7 61

762

0 27

54

705

240

10 5

26 6

01

Litc

hfiel

d C

ounc

il23

349

172

432

358

02

529

063

11 3

14 9

1837

625

512

Mac

Don

nell

Reg

iona

l Cou

ncil

3 67

5 10

616

9 02

739

100

979

861

3 04

3 36

37

906

457

Rop

er G

ulf R

egio

nal C

ounc

il3

648

320

136

667

166

747

1 04

7 96

83

328

205

8 32

7 90

7

Tiw

i Isl

ands

Reg

iona

l Cou

ncil

1 31

1 77

516

5 76

064

399

958

141

1 24

4 85

03

744

925

Vict

oria

Dal

y R

egio

nal C

ounc

il1

555

675

145

448

38 5

2569

2 87

31

427

327

3 85

9 84

9

Wag

ait S

hire

Cou

ncil

240

582

9 46

70

54 2

1722

5 64

952

9 91

5

Wes

t Arn

hem

Reg

iona

l Cou

ncil

3 52

2 72

020

1 29

498

900

1 16

7 72

23

119

024

8 10

9 66

1

Wes

t Dal

y R

egio

nal C

ounc

il1

784

326

114

261

115

574

859

487

1 63

6 95

44

510

601

TOTA

L$

188

339

341

$2

558

632

$4

019

500

$15

527

560

$10

6 43

8 03

0$

316

883

063


Schedule 9

Standardised expenditure 2016-17

* Fi

gure

s ha

ve b

een

roun

ded

and

disc

repa

ncie

s m

ay o

ccur

bet

wee

n to

tals

and

the

sum

s of

the

com

pone

nt it

ems.

Coun

cil

Econ

omic

af

fair

s

$Ed

ucat

ion

$

Envi

ronm

enta

l pr

otec

tion

$

Gen

eral

pu

blic

se

rvic

es

$H

ealt

h

$

Hou

sing

and

co

mm

unity

am

eniti

es

$

Publ

ic o

rder

an

d sa

fety

$

Rec

reat

ion,

cu

ltur

e an

d re

ligio

n

$

Soci

al

prot

ectio

n

$To

tal

$

Alic

e Sp

ring

s To

wn

Cou

ncil

11 7

34 7

081

785

907

4 70

0 51

21

938

297

3 97

9 56

732

7 97

75

260

296

55 2

992

300

113

32 0

82 6

76

Bar

kly

Reg

iona

l Cou

ncil

4 70

5 76

81

069

027

2 12

4 46

654

4 09

72

382

131

196

324

2 37

7 46

933

102

1 37

6 82

614

809

211

Bel

yuen

Com

mun

ity

Gov

ernm

ent C

ounc

il13

1 21

219

194

27 4

7912

901

42 7

713

525

30 7

5159

424

721

293

150

Cen

tral

Des

ert R

egio

nal C

ounc

il2

911

662

735

583

1 41

6 95

430

7 38

21

639

112

135

088

1 58

5 70

022

777

947

375

9 70

1 63

2

City

of D

arw

in

33 8

88 7

014

363

950

13 0

54 9

776

129

230

9 72

4 26

580

1 42

814

609

696

135

127

5 62

0 43

788

327

810

City

of P

alm

erst

on15

190

427

1 97

6 54

25

646

772

2 65

1 12

44

404

364

362

987

6 31

9 24

761

202

2 54

5 63

739

158

302

Coo

mal

ie C

omm

unity

G

over

nmen

t Cou

ncil

661

766

112

876

279

229

103

500

251

523

20 7

2931

2 48

23

495

145

376

1 89

0 97

6

East

Arn

hem

Reg

iona

l Cou

ncil

7 51

0 22

01

962

369

3 70

9 70

175

3 92

34

372

781

360

384

4 15

1 48

960

763

2 52

7 38

225

409

012

Kat

heri

ne T

own

Cou

ncil

4 81

6 45

766

7 17

31

691

981

766

244

1 48

6 67

312

2 52

41

893

479

20 6

5985

9 26

812

324

458

Litc

hfiel

d C

ounc

il10

406

107

1 51

4 26

44

327

192

1 84

2 62

53

374

262

278

091

4 84

2 51

846

888

1 95

0 25

828

582

205

Mac

Don

nell

Reg

iona

l Cou

ncil

4 64

6 15

71

180

055

2 28

9 81

949

5 60

92

629

537

216

714

2 56

2 51

436

540

1 51

9 82

115

576

766

Rop

er G

ulf R

egio

nal C

ounc

il5

014

047

1 26

7 44

92

475

356

541

995

2 82

4 27

823

2 76

42

770

146

39 2

461

632

378

16 7

97 6

58

Tiw

i Isl

ands

Reg

iona

l Cou

ncil

1 97

2 46

438

3 76

866

7 38

120

2 72

385

5 15

670

478

746

860

11 8

8349

4 26

45

404

977

Vict

oria

Dal

y R

egio

nal C

ounc

il1

972

019

403

357

793

690

232

439

898

807

74 0

7588

8 21

112

490

519

493

5 79

4 58

0

Wag

ait S

hire

Cou

ncil

206

011

26 6

3878

269

36 7

4759

357

4 89

287

590

825

34 3

0753

4 63

5

Wes

t Arn

hem

Reg

iona

l Cou

ncil

4 63

8 76

795

2 20

11

772

503

507

930

2 12

1 80

717

4 86

91

983

590

29 4

841

226

363

13 4

07 5

15

Wes

t Dal

y R

egio

nal C

ounc

il2

621

199

471

851

786

879

266

576

1 05

1 43

386

654

880

589

14 6

1160

7 70

86

787

500

Tota

l$1

13 0

27 6

93$1

8 89

2 20

2$4

5 84

3 16

1$1

7 33

3 34

3$4

2 09

7 82

5$3

469

502

$51

302

627

$584

985

$24

331

725

$316

883

063



Schedule 10

National share of financial assistance grants 2018-19

State/Territory General purpose $

Share %

Local road component

$Share

%Total

$Share

%

NSW 544 058 912 31.96 219 131 911 29.01 763 190 823 31.06

VIC 438 977 661 25.79 155 712 474 20.62 594 690 135 24.20

QLD 341 178 718 20.04 141 512 758 18.74 482 691 476 19.64

WA 177 791 685 10.45 115 484 204 15.29 293 275 889 11.93

SA 118 732 023 6.98 41 508 033 5.50 160 240 056 6.52

TAS 35 988 453 2.11 40 024 771 5.30 76 013 224 3.09

NT 16 901 357 0.99 17 692 420 2.34 34 593 777 1.41

ACT 28 501 060 1.67 24 218 544 3.21 52 719 604 2.15

TOTAL $1 702 129 869 100 $755 285 115 100 $2 457 414 984 100

Schedule 11

Visits/Public Hearings to local governing bodies

Council Service delivery centre 2017-18 2016-17 2015-16 2014-15

Darwin City Council Darwin

Tiwi Islands Regional Council

Wurrumiyangav

Pirlangimpi

Milikapiti

Wuranku

30 Jul 14

31 Jul 14

31 Jul 14

31 Jul 14

City of Palmerston Palmerston

Belyuen Community Government Council

Belyuen

Coomalie Community Government Council

Coomalie 19 May 15

Wagait Shire Council Wagait/Cox Peninsula

Litchfield Council Litchfield

West Arnhem Regional Council

Shire Office (Jabiru) 19 Nov 14

Maningrida 19 Nov 14

Gunbalanya 17 Nov 14

Minjilang 18 Nov 14

Warruwi 18 Nov 14



East Arnhem Regional Council

Shire Office (Nhulunbuy)

Galiwin’ku

Gunyangara (Marngarr)

Lake Evella

Milyakburra

Milingimbi

Ramingining

Yirrkala

Umbakumba

Angurugu

26 Nov 17

Victoria Daly Regional Council

Shire Office (Katherine)

Daly River

Daguragu/Kalkarindji

Timber Creek

Yarralin

Pine Creek

07 Oct 15

06 Oct 15

09 Oct 15

08 Oct 15

08 Oct 15

07 Oct 15

West Daly Regional Council

Nganmarriyanga

Peppimenarti

Wadeye

05 Oct 15

06 Oct 15

05 Oct 15

Katherine Town Council

Katherine

Binjari

Roper Gulf Regional Council

Shire Office (Katherine)

Borroloola

Numbulwar

Barunga

Wugularr (Beswick)

Bulman

Manyallaluk (Eva Valley)

Ngukurr

Mataranka

Jilkminggan

06 May 16

05 May 16

05 May 16

04 May 16

04 May 16

06 May 16

04 May 16

05 May 16

03 May 16

03 May 16

Schedule 11 (cont.)




Barkly Regional Council

Shire Office (Tennant Creek)

Elliott

Ampilatwatja

Ali Curung

Alpurrurulam

Arlparra (Utopia)

14 June 18

14 June 18

13 June 18

15 June 18

Alice Springs Town Council

Alice Springs

Central Desert Regional Council

Shire Office (Alice Springs)

Nyrippi

Lajamanu

Yuendumu

Willowra

Ti-Tree

Laramba

Engawala

Atitjere (Harts Range)

Yuelamu

25 Mar 15

26 Mar 15

25 Mar 15

27 Mar 15

24 Mar 15

24 Mar 15

26 Mar 15

23 Mar 15

23 Mar 15

27 Mar 15

MacDonnell Regional Council

Shire Office (Alice Springs)

Areyonga

Haasts Bluff

Imanpa

Docker River

Hermannsburg (Ntaria)

Papunya

Kintore

Wallace Rockhole

Amoonguna

Finke

Santa Teresa

Titjikala

Mount Liebig

22 Jul 16

19 Jul 16

21 Jul 16

20 Jul 16

19 Jul 16

21 Jul 16

22 Jul 16

18 Jul 16

18 Jul 16

22 Jul 16

20 Jul 16

Schedule 11 (cont.)



Schedule 12

Local governing bodies that failed to lodge 2016-17 annual financial statements by the date specified

Belyuen Community Government Council

Katherine Town Council

MacDonnell Regional Council

Tiwi Islands Regional Council


Appendix A

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

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 to 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 were 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.

29 — Appendices

Appendices

Appendix B

Methodology and formula factors

Introduction

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

The Commission in assessing relative need for allocating general purpose funding uses the balanced budget approach to horizontally equalise 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.

Population

For the 2008-09 allocations the Commission resolved to use the latest ABS estimated resident population figures and then adjust the figures 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 2018-19 calculations.

Revenue raising capacity

As the ownership of the land on which many communities are located is vested in land trusts established pursuant to the Commonwealth Government 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 municipal and regional council rates, domestic waste 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 are recognised in the revenue component of 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 2018-19 allocations financial data in respect of the 2016-17 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 the nine expenditure categories in accordance with the Australian Bureau of Statistics Local Government Purpose Classifications. In the 2012-13 grant calculations an additional expenditure category was created (Regional Centre Recognition) to acknowledge the financial drains on municipal councils caused by urban drift. This expenditure category had been used in all subsequent grant processes with the exception of the 2016-17 and 2017-18 calculations where the Commission quarantined a pool totaling $200 000 and subsequently allocated $135 000 and $65 000 to the Alice Springs and Katherine councils respectively.

When the grants were calculated in 2018-19 using the estimated resident population data from the Australian Bureau of Statistics 2016 census, a number of councils had population decreases. The previous quarantined parameter applied in 2016-17 and 2017-18 to the Katherine and Alice Springs councils was difficult to justify in the 2018-19 calculations when six other councils would have received reductions in funding that were difficult to absorb. To mitigate this, the Commission resolved to redistribute the $200 000 quarantined amount to buffer funding reductions across all councils as a result of the population decreases.

Consequently the Commission implemented a 5% loss assist factor into the 2018-19 methodology. The rationale for implementing the loss assist factor was that it was only applied to councils that stood to receive a loss greater than 5% in grant funding. A total of 6 councils benefited from the loss assist parameter which totalled $355 974.

Cost adjustors

The Commission uses cost adjustors to reflect a local government’s demographics, geographical location, its 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 2018-19 are shown at Schedule 2. There are three cost adjustors being: location, dispersion and Aboriginality.

Minimum grants

For most local governments, the assessed expenditure needs exceed the assessed revenue capacity, meaning there is an assessed need. In four cases, assessed revenue capacity is greater than assessed expenditure need, meaning that there is no assessed need. However, as the 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, four local government councils still receive a grant, or what is referred to as the minimum grant.

31 — Appendices

Formula

1. Revenue component

All councils:

Assessed revenue raising capacity = Total identified local government revenue

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

Where

Revenue category = Domestic waste, garbage, municipal rates, regional and shire rates, special rates parking, special rates other, fines and interest

Domestic waste = Per capita

Garbage other = Actual

Municipal council rates = Average rate

Regional and Shire rates = Per capita

Interest = Actual

State income by revenue category 2016-17

= Actual state local government gross income

Actual state local government gross income 2016-17

= $188 339 341

Other grant support = Roads to Recovery grant 2017-18 50%, library grant 2017-18 and roads grant 2017-18

Budget term = Population x per capita amount

Total local government revenue for 2018-19 allocations

= $316 883 063


2. Expenditure components (a) General public services ($113 027 693)

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

(b) Public order and safety ($18 892 202)

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

(c) Economic affairs ($45 843 161)

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

(d) Environmental protection ($17 333 343)

Community population/Northern Territory population x environmental protection expenditure

(e) Housing and community amenities ($42 097 825)

Community population/Northern Territory population x housing and community amenities expenditure x (location + dispersion + Aboriginality)

(f) Health ($3 469 502)

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

(g) Recreation, culture and religion ($51 302 627)

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

(h) Education ($584 985)

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

(i) Social protection ($24 331 725)

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

Total local government expenditure of $316 883 063 apportioned over each expenditure component.

33 — Appendices

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:

Road type Weighting

Sealed 27.0

Gravel 12.0

Cycle path 10.0

Formed 7.0

Unformed 1.0

The general purpose location factor is also applied to recognise relative isolation.

Application of cost adjustors

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)


Appendix C

The 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

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

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

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

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 5000 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

35 — Appendices

Appendix D

Northern Territory local governments by classification

Council ACLG Classification

Alice Springs Town Council URS

Barkly Regional Council RTL

Belyuen Community Government Council RTX

Central Desert Regional Council RTL

City of Darwin UCC

City of Palmerston URM

Coomalie Community Government Council RTM

East Arnhem Regional Council RTL

Katherine Town Council URS

Litchfield Council UFS

MacDonnell Regional Council RTL

Roper Gulf Regional Council RTL

Tiwi Islands Regional Council RTM

Victoria Daly Regional Council RTL

Wagait Shire Council RTS

West Arnhem Regional Council RTL

West Daly Regional Council RTL


Appendix E

Northern Territory map of local government areas

37 — Appendices

Appendix F

Independent Auditor’s Report to the Minister for Housing and Community Development Northern Territory Grants Commission


39 — Appendices

41 — Appendices

Appendix G


43 — Appendices

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...northern territory grants commission annual report 2017/18...

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