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

SLIDE 1

South Austr a lia n L

c a l

Gove r nme nt Gr a nts Commission 2016 - 2017

Pr e se ntation to

City of Bur nside

SLIDE 2

T he Commission - Me mbe r ship

T he Cha ir, Mar

y Pate tsos is a jo int no mine e o f the L

c a l

Go ve rnme nt Asso c ia tio n a nd the Ministe r fo r L

c a l Go ve rnme nt

Co mmissio ne r, Ror

y Mc E we n is a no mine e o f the Ministe r fo r

L

c a l Go ve rnme nt

Co mmissio ne r, De puty Ma yo r L

uke Hutc hison is a no mine e o f

the L

c a l Go ve rnme nt Asso c ia tio n

SLIDE 3

T he Commission - Staff

E xe c utive Offic e r, Pe te r

Ile e , Se nio r Pro je c t Offic e r, Ale x Sgr

SLIDE 4

T he Commission - F unc tion

Make r e c omme ndations on the distr ibution of untie d Commonwe alth financ ial assistanc e gr ants to loc al gove r ning author itie s in South Austr alia

T he g ra nt pa yme nts c o nsist o f two c o mpo ne nts:

a g e ne ra l fina nc ia l a ssista nc e c o mpo ne nt; a nd
a n ide ntifie d lo c a l ro a d c o mpo ne nt

T he total Gr ant to Counc il is untie d

Gra nts a re distrib ute d imme dia te ly the Co mmissio n re c e ive s the funding

SLIDE 5

L e gislative Re quir e me nts

T

he Co mmissio n is e sta b lishe d unde r the So uth Australian L

c al Go ve rnme nt Grants Co mmissio n Ac t 1992

SLIDE 6

L e gislative Re quir e me nts

T

he Co mmissio n is e sta b lishe d unde r the So uth Australian L

c al Go ve rnme nt Grants Co mmissio n Ac t 1992.
T

he Co mmissio n ma ke s re c o mme nda tio ns pursua nt to the Co mmo nwe a lth L

c al Go ve rnme nt (F

inanc ial Assistanc e ) Ac t 1995, whic h se ts o ut:

Ho w the Co mmo nwe a lth de te rmine s the po o l o f a va ila b le

funding

T

he 6 Na tio na l Princ iple s to b e a pplie d b y the Co mmissio n in ma king its re c o mme nda tio ns; a nd

T

he re q uire me nt to ho ld Pub lic he a ring s with a nd re c e ive sub missio ns fro m a ll c o unc ils a b o ut the Co mmissio ns re c o mme nda tio ns. T he Co mmissio n visits e a c h c o unc il o nc e e ve ry 3 ye a rs

SLIDE 7

T

ta l Commonwe a lth F

ina nc ia l Assista nc e Gra nts for L

c a l Gove rnme nt Sta te E

ntitle me nts 2015- 16 a nd 2016- 17

% Change State Proportion Allocation Proportion Allocation Plus 15/16 to (adjusted for actual) Actual (based on estimates) Brought Fwd Pmt 16/17 (%) ($mill) (%) ($mill) (%) New South Wales 31.10 711.60 31.11 712.09 0.07 Victoria 23.60 539.89 23.69 542.14 0.42 Queensland 19.69 450.54 19.67 450.26 (0.06) Western Australia 12.27 281.14 12.23 280.00 (0.41) South Australia 6.65 152.09 6.62 151.43 (0.43) Tasmania 3.14 71.83 3.13 71.54 (0.40) Northern Territory 1.44 32.91 1.43 32.64 (0.82) Australian Capital Territory 2.12 48.57 2.12 48.58 0.02 TOTAL 100.00 2,288.57 100.00 2,288.68 0.00 2016-17 2015-16

SLIDE 8

Ge ne r al Pur pose Gr ants 2015- 16 and 2016- 17

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

SLIDE 9

F inanc ial Assistanc e Gr ants 2016- 17

Ge ne ra l Purpo se Gra nt I de ntifie d L

c a l Ro a d Gra nt

Spe c ia l L

c a l Ro a d Gra nt (I

L RG a nd/ o r RT R) Adjustme nt fo r 2015-16

T

tal Gr

ant for 2016- 17

City of Bur nside

897,077 $ 464,129 $

$

245 $ 1,361,451 $

0.65%
0.10%

SLIDE 10

National Pr inc iple s

Ho rizo nta l E

q ua lisa tio n

Pe r Ca pita Minimum
E

ffo rt Ne utra lity

Othe r Gra nt Suppo rt
Ab o rig ina l a nd T
rre s Stra it I

sla nde rs

Co unc il Ama lg a ma tio n (Ne w Princ iple in 2006-07)

SLIDE 11

National Pr inc iple s

F ull hor

izontal e qualisation a s de fine d b y the Co mmo nwe alth

L

c al Go ve rnme nt (F

inanc ial Assistanc e ) Ac t 1995 Se c tio n 6(3a ) is a re fe re nc e to a n a llo c a tio n o f funds tha t:

e nsure s tha t e a c h lo c a l g o ve rning b o dy in a Sta te is a b le to

func tio n, b y re a so na b le e ffo rt, a t a standar

d no t lo we r than the ave r age standar d o f o the r lo c a l g o ve rning b o die s in the

Sta te ; a nd

ta ke s a c c o unt o f diffe r

e nc e s in the e xpe nditur e re q uire d to b e

inc urre d b y lo c a l g o ve rning b o die s in the pe rfo rma nc e o f the ir func tio ns a nd in the ir c apac ity to r

aise r e ve nue

Hor izontal E qualisation

SLIDE 12

National Pr inc iple s

Ac c o rding ly, the g ra nts sho uld c o mpe nsate c o unc ils fo r

diffe r e nc e s in the c o sts o f pr

viding se r

vic e s and in diffe r e nc e s in the ir r e ve nue r aising c apac ity, a c c o rding to a the o re tic a l

mo de l

E qualisation r e fe r s to the financ ial c apac ity of the Counc il, it

do e s no t me a n tha t the le ve l o f se rvic e s must b e e q ua l Co unc ils ma y c ho o se to ha ve hig he r o r lo we r le ve l o f se rvic e a c c o rding to the ir o wn prio ritie s

T he Commission aims to e qualise Counc ils financ ial c apac ity to pr

vide a similar

le ve l of se r vic e to the ir c ommunitie s

Hor izontal E qualisation

SLIDE 13

National Pr inc iple s

L

w Ca pa c ity

to Ra ise Re ve nue Hig h E xpe nditure Ne e d Hig h Ca pa c ity to Ra ise Re ve nue L

w

E xpe nditure Ne e d

Ave r age

SLIDE 14

National Pr inc iple s

Pe r Capita Minimum

E a c h c o unc il is a ssure d o f re c e iving a s a minimum, the a mo unt to whic h the c o unc il wo uld b e e ntitle d, if 30% o f the to ta l a mo unt o f the fund wa s a llo c a te d o n a pe r c a pita b a sis

$19.92 pe r c apita for 2016- 17 E ffor t Ne utr ality

T he g ra nt is inde pe nde nt o f the po lic y o r pra c tic e s o f the individua l c o unc il in re la tio n to re ve nue a nd e xpe nditure

Othe r Gr ant Suppor t

Othe r re le va nt Gra nt Suppo rt pro vide d to c o unc ils to me e t a ny

f the e xpe nditure ne e ds a sse sse d is ta ke n into a c c o unt using

the inc lusio n a ppro a c h

SLIDE 15

National Pr inc iple s

Abor iginal Pe ople s and T

r

r e s Str aight Islande r s

Gra nts a re a llo c a te d in a wa y whic h re c o g nise s the ne e ds o f Ab o rig ina l pe o ple s a nd T

rre s Stra it I

sla nde rs

Counc il Amalgamation (Ne w Pr inc iple in 2006- 07)

Whe re two o r mo re lo c a l g o ve rning b o die s a re a ma lg a ma te d into a sing le b o dy, the g e ne ra l purpo se g ra nt pro vide d to the ne w b o dy fo r e a c h o f the fo ur ye a rs fo llo wing a ma lg a ma tio n, sho uld b e the to ta l o f the a mo unts tha t wo uld ha ve b e e n pro vide d to the fo rme r b o die s in e a c h o f tho se ye a rs if the y ha d re ma ine d se pa ra te e ntitie s

SLIDE 16

Commission’s Me thodology

Using a Mo de l, the Co mmissio n c a lc ula te s e a c h c o unc il’ s fina nc ia l c a pa c ity c o mpa re d to the a ve ra g e c o unc il T he re a re 2 c o mpo ne nts to the c a lc ula tio ns:

Re ve nue Compone nt
E

xpe nditur e Compone nt

A ma the ma tic a l fo rmula is use d fo r b o th re ve nue a nd e xpe nditure c a lc ula tio ns

SLIDE 17

Re ve nue Compone nt

T he Re ve nue Compone nt e stima te s a g ra nt c o mpo ne nt b a se d

n the c o unc ils c a pa c ity to ra ise re ve nue c o mpa re d to the

a ve ra g e c o unc il F a c to rs ta ke n into c o nside ra tio n in the re ve nue c o mpo ne nt inc lude :

Pr
pe r

ty value s fro m the Va lue r Ge ne ra ls Offic e . T

he Co mmissio n use s c a pita l va lue s in the c a lc ula tio ns a nd ta ke s into c o nside ra tio n the 5 la nd use type s g e ne ra lly use d b y c o unc ils (re side ntia l, c o mme rc ia l, industria l, rura l a nd o the r)

Population – fro m the Austra lia n Bure a u o f Sta tistic s (ABS)
T

he SE

IF A I

nde x o f E c o no mic Re so urc e s fro m the ABS. T his inde x is use d b y the Co mmissio n to a c c o unt fo r c o unc ils re la tive a dva nta g e o r disa dva nta g e c o mpa re d to the a ve ra g e c o unc il in re la tio n to its re side nts c a pa c ity to pa y

SLIDE 18

E xpe nditur e Compone nt

T he E

xpe nditur e Compone nt e stima te s a g ra nt c o mpo ne nt b a se d

n c o unc ils e xpe nditure fo r a ra ng e o f func tio ns c o mpa re d to the

a ve ra g e c o unc il. F a c to rs ta ke n into c o nside ra tio n in the e xpe nditure c o mpo ne nt inc lude :

Re por

te d Costs fo r a ra ng e o f func tio ns typic a lly unde rta ke n b y

c o unc ils. T he ra ng e o f func tio ns is re g ula rly re vie we d b y the Co mmissio n.

Cost Dr

ive r s – ta ke s into a c c o unt a fa c to r tha t drive s the c o st o f

pro viding a pa rtic ula r se rvic e . E .g ., Pla nning a nd Building Co ntro l – the numb e r o f de ve lo pme nt a pplic a tio ns lo dg e d; Ag e d Ca re – the po pula tio n o ve r 65; Wa ste Ma na g e me nt – numb e r o f re side ntia l , rura l a nd c o mme rc ia l (sho p) pro pe rtie s.

Re le va nt Cost Re lativity Indic e s, whic h a re a me a sure o f c o unc ils

re la tive a dva nta g e o r disa dva nta g e c o mpa re d to o the r c o unc ils in pro viding simila r se rvic e s due to fa c to rs o utside the ir c o ntro l.

SLIDE 19

E xpe nditur e F unc tions

Wa ste Ma na g e me nt
Ag e d Ca re Se rvic e s
Se rvic e s to F

a milie s a nd Childre n

He a lth I

nspe c tio n

L

ib ra rie s

Spo rt, Re c re a tio n & Culture
Se a le d Ro a ds (b uilt up, no n

b uilt up, fo o tpa ths, stre e t lig hting e tc )

Unse a le d Ro a ds (b uilt up,

no n b uilt up)

Unfo rme d Ro a ds
Sto rmwa te r Dra ina g e

Ma inte na nc e

Co mmunity Suppo rt
Je ttie s a nd Wha rve s
Pub lic Orde r a nd Sa fe ty
Pla nning a nd Building

Co ntro l

Bridg e s
E

nviro nme nt & Co a sta l Pro te c tio n

Othe r Spe c ia l Ne e ds (no n-

re side nt use , iso la tio n, AT SI C po pn, % une mplo ye d)

SLIDE 20

Ide ntifie d L

c al Road Gr

ants 2015- 16 and 2016- 17

% Change State Proportion Allocation Proportion Allocation Plus 15/16 to (adjusted for actual) Actual (based on estimates) Brought Fwd Pmt 16/17 (%) ($mill) (%) ($mill) (%) New South Wales 29.01 204.08 29.01 204.09 0.00 Victoria 20.62 145.01 20.62 145.02 0.00 Queensland 18.74 131.79 18.74 131.80 0.00 Western Australia 15.29 107.55 15.29 107.55 0.00 South Australia 5.50 38.66 5.50 38.66 0.00 Tasmania 5.30 37.27 5.30 37.28 0.00 Northern Territory 2.34 16.48 2.34 16.48 0.00 Australian Capital Territory 3.21 22.55 3.21 22.56 0.00 TOTAL 100.00 703.39 100.00 703.42 0.00 2016-17 2015-16

SLIDE 21

Ide ntifie d Road Compone nt

F

r

mulae gr ants divide d b e twe e n urb a n a nd rura l c o unc ils o n

the b a sis o f a n e q ua l we ig hting o f ro a d le ng th a nd po pula tio n. (= 41.48% urb an and 58.52% rural)

Ur ban distr ibution is de te rmine d b y a n e q ua l we ig hting o f ro a d

le ng th a nd po pula tio n

Rur al distr ibution is de te rmine d o n a n e q ua l we ig hting o f ro a d

le ng th, po pula tio n, a nd a re a

F

r

mulae gr ants 85% Spe c ial L

c al Roads 15%

SLIDE 22

Spe c ial L

c al Roads Pr
gr

am

T

he Spe c ia l L

c a l Ro a ds Pro g ra m pro vide s funding fo r ro a ds
f re g io na l sig nific a nc e
T

he pro g ra m is a dministe re d b y the Gra nts Co mmissio n via the L

c a l Go ve rnme nt T

ra nspo rt Adviso ry Pa ne l (L GT AP), who ma ke re c o mme nda tio ns to the Gra nts Co mmissio n fo r a ppro va l b y the Ministe r

T

he pro g ra m re c e ive s 15% fro m e a c h o f the I de ntifie d Ro a d Gra nts a nd the Ro a ds to Re c o ve ry funding pro g ra ms

T

he Spe c ia l L

c a l Ro a ds Pro g ra m will distrib ute $10.427 millio n

fo r 2016-17. (inc lude s ‘ sta nda rd’ RT R & fue l e xc ise RT R)

Co unc ils ide ntify ro a ds o f re g io na l sig nific a nc e , whic h a re

prio ritise d b y Re g io na l Asso c ia tio ns a nd sub mitte d to the L GT AP

SLIDE 23

Spe c ial L

c al Roads Pr
gr

am - Pr

c e ss

State and Commonwe alth Ministe r s

re c e ive re c o mme nda tio ns fo r a ppro va l

Gra nts Commission

Re vie w pro po sa ls a nd ma ke re c o mme nda tio ns

L

c a l Gove rnme nt T

ra nsport Advisory Pa ne l

Asse sse s a ll sub missio ns a nd prio ritize s the m a c ro ss the Sta te

Re g iona l Assoc ia tions

Prio ritise ro a ds within the re g io n

Counc il

I de ntifie s ro a d o f re g io na l sig nific a nc e

SLIDE 24

Commonwe alth Ide ntifie d L

c al Road Gr

ants State E ntitle me nts 2016- 17

Sta te

I L RG (E stim a te) ($m ill) Pro p o rtio n

f I

L RG (%) T

ta l

Kilo m etres (30 June 2015) Gra nts Per Kilo m etre ($) Pro p o rtio n o f L

c a l Ro a d

Netw o rk (%) E stim a ted resid ent p o p (30 June 2015) Pro p o rtio n

f Na tio na l

Po p ula tio n (%) Gra nts Per C a p ita ($)

Ne w So uth Wa le s 204.09 29.01 146,339 1,394.61 22.13 7,617,181 32.05 26.79 Vic to ria 145.02 20.62 130,501 1,111.26 19.73 5,937,462 24.99 24.42 Que e nsla nd 131.80 18.74 148,844 885.46 22.50 4,774,888 20.09 27.60 We ste rn Austra lia 107.55 15.29 127,504 843.54 19.28 2,590,259 10.90 41.52

South Austr a lia 38.66 5.50 78,213 494.26 11.83 1,698,660 7.15 22.76

Ta sma nia 37.28 5.30 14,266 2,612.97 2.16 516,586 2.17 72.16 No rthe rn Te rrito ry 16.48 2.34 13,309 1,238.05 2.01 237,252 1.00 69.45 Austra lia n Ca pita l Te rrito ry * 22.56 3.21 2,429 9,285.95 0.37 390,706 1.64 57.73

T OT AL 703.42 100.00 661,404 1,063.53 100.00 23,762,994 100.00 29.60

* AC T Ro a d leng th fig ures a s a t 20 June 2014, a w a iting up d a te fro m the AC T

SLIDE 25

SA L

c al Gove r

nme nt Gr ants Commission

Contac t Us

Po sta l Addre ss SA L

c a l Go ve rnme nt Gra nts Co mmissio n

GPO Bo x 2329 ADE L AI DE SA 5001 Pho ne (08) 7109 7164 E

ma il