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Annual Report 2007-08 Northern Territory Grants Commission

1 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 ISSN 1835-4440 Letter to the Minister

Mr Robert Knight MLA Minister for Local Government Parliament House DARWIN NT 0800

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 2007-2008. Included in the report are the financial statements for the year ended 30 June 2008.

Yours sincerely

Robert Beadman Chairman 16 September 2008

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 1 Contents

Foreword 4 The Commission 6 Background 7 Relevant Legislation 7 Organisation and People 8 Membership 9 Members’ Profiles 10 Administration and Staffing 11 Summary of Activities in 2007-2008 12 Review of the Financial Assistance Grants Methodology 13 Annual Conference 13 Executive Officers’ Meeting 13 Visits to Local Governing Bodies 13 Public Hearings 13 Financial Data 14 Data Collection Returns 14 Annual Financial Statements 14 Submissions 14 Payments 2007-2008 14 Estimated Entitlement 2007-2008 14 Entitlement 2007-2008 14 Cash Entitlement 2008-2009 15 Communication with Councils 15 Revenue and Expenditure Assessments of Local Governments 15 Recommendations 16 Chairman’s Letter 17 Recommendation 1 Schedule of Estimated Entitlement 18 Recommendation 2 Schedule of Under/Overpayment 2007-2008 19 Recommendation 3 Schedule of Cash Payment 21

2 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Contents

Schedules 22 Schedule 1 Population 23 Schedule 2 Northern Territory Grants Commission Cost Adjustors and Key Drivers 2008-2009 23 Schedule 3 Councils Local Road Lengths 24 Schedule 4 Reconciliation of Local Government Income and Expenditure 25 Schedule 5 Local Government Income 2006-2007 26 Schedule 6 Actual Local Government Expenditure 2006-2007 28 Schedule 7 Assessed Revenue 2006-2007 30 Schedule 8 Summary Standardised Revenue 34 Schedule 9 Standardised Expenditure 36 Schedule 10 National Distribution and Shares of Financial Assistance Grants 2008-2009 37 Schedule 11 Visits to Local Governing Bodies 38 Public Hearings to Councils 39 Schedule 12 Local Governing Bodies that Failed to Lodge their 2006-2007 Annual Financial Statements by the Date Specified 39 Appendices 40 Appendix A National Principles For The Allocation Of General Purpose And Local Road Grants 41 Appendix B Methodology and Formula Factors 42 Methodology 42 Population 42 Revenue Raising Capacity 42 Expenditure Needs 43 Cost Adjustors 43 Formula 44 Application of Cost Adjustors 45 Appendix C Revoked Local Governing Bodies 46 Appendix D Re-Structuring Orders to Establish New Councils 47 Appendix E The Australian Classification of Local Government (ACLG) 48 Appendix F Northern Territory Local Governments by Classification 49 Appendix G Northern Territory Map of Shire Areas 50 Appendix H Auditor-General’s Report to the Minister for Local Government Northern Territory Grants Commission For The Year Ended 30 June 2008 51

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 3 Foreword Foreword

Section 16 of the Local Government Grants Commission Commission to assess the needs of the local governments based Act 1986 requires that the Commission report annually to on real Territory averages leading to a more realistic distribution the Minister for Local Government on its activities during the of the financial assistance grants. The data is also forwarded to year, and in particular its activities relating to Commonwealth the ABS for use in government finance statistics and national financial assistance to local governing bodies. accounts. In this process a very good working relationship has been established between the relevant staff of ABS and staff I am pleased to present the twenty-second annual report on of the Commission. behalf of the Northern Territory Grants Commission. The report contains information on the distribution of funding provided The collection of the financial data for the 2007-2008 financial to the Northern Territory’s local governing bodies under the year, will be the last year where the Annual Return will be Commonwealth’s Local Government (Financial Assistance) completed by the 63 existing councils. For the 2008-2009 Act 1995, as well as details on the objectives, performance financial year the annual return will be completed by eight and future directions of the Commission. My hope is the report councils and eight new local government shires. conveys sufficient relevant information on the Commission’s The rolling program of Commission visits to communities and programs and performance during the year to enable any their outstations were postponed for the 2007-2008 year agency, organisation or individual so interested to assess its due to the Northern Territory’s local government reform which operations and functioning. was being undertaken and the Commonwealths’s emergency Following the Northern Territory Government’s announcements response. Only 2 locations were visited this year with public about local government reform the Commission issued a hearings being held in Darwin and Alice Springs. In the future, discussion paper to invite comments from interested local visitations will be on a shire and municipal basis. governing bodies on the options available to the Commission in On behalf of the Commission, I wish to record our appreciation developing a methodology that adapts to the changed structure. for the valuable cooperation and assistance that we have The paper highlighted the need for the Commission to re-visit received during the Commission’s work throughout the year and amend the cost adjustors that are used in the methodology. from most local governing bodies, and in particular, those A total of five submissions were received from councils and they visited during the year. The Commission would like to express supported a review of the cost adjustors to suit the structure of its thanks to the Darwin and Alice Springs councils for the use the new shires. of their facilities during the Commission’s public hearings. The original review of the methodology commenced in The Commission is grateful for the executive support and 1998 and was completed in 2006-2007. That review assistance of Mr Abdus Sattar and Mrs Donna Hadfield of then highlighted the need for a regular process of continued the Local Government Division, the Department of Local improvement in further refining the revenue and expenditure Government, Housing and Sport, combined with the assistance categories and appropriate cost adjustors. Hence, New Local and services provided by the regional offices of the Department. Government has proven that the methodology needs to be I would also like to take this opportunity to acknowledge the reviewed again to ensure the expenditure categories and efforts of my colleagues, Mr Nick Scarvelis, Ms Frances Kilgariff, cost adjustors are appropriate for the structure. Mr Maurie Ryan (resigned October 2007), Ms Anne Perry The new method for the collection of local government and deputies Mr John Bailey and Mrs Margaret Vigants. financial data and performance information introduced in Their assistance has been very much appreciated. November 2003, has proved successful and was used again in 2007-2008. This collection process will continue in future years with consideration being given to collecting data at a lower level than originally anticipated. This process of data collection has been invaluable to the Commission. The data collected on the returns is now used by the Commission instead of personal incomes and a hypothetical Robert Beadman spread of expenditure across categories. It has enabled the Chairman

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 5 The Commission The Commission

Background The Local Government (Financial Assistance) Act 1995 also requires each state and the Northern Territory to have a local On 1 July 1986 the Australian Government begun a process government grants commission. In accordance with that of yearly appropriations to the State/Territory Governments for requirement, the Northern Territory legislated for a statutory, distribution as financial assistance grants to local governing independent commission, the Northern Territory Grants bodies within the respective jurisdictions. A subsequent review Commission, in June 1986. of the enabling legislation led to the current Act, the Local Government (Financial Assistance) Act 1995. Even though Role of the Northern Territory Grants Commission around 15 per cent of the Northern Territory population lived The Northern Territory Grants Commission is established as an in areas outside recognised local government boundaries, the independent statutory authority under the Local Government Commonwealth legislation provides, among other things, for Grants Commission Act. Its primary role is to allocate financial the total Northern Territory population to be taken into account assistance grants provided by the Australian Government to in determining its global financial entitlement, relative to the Northern Territory local governing bodies in the form of general other Australian States. purpose grants and local roads grants. Under section 6(1) of the Act, the Commonwealth Minister, after consulting with the relevant State Ministers and with Relevant Legislation bodies representative of local government, must formulate The Northern Territory’s Local Government Grants Commission national principles. Act governs the operation of the Northern Territory Grants Commission. The Act establishes the Commission primarily for the In formulating the National Principles the Minister: purpose of determining the allocation of financial assistance to a. is to regard the need to ensure the allocation of funds for councils, provides for the appointment of Commission members local government purposes is made, as far as practicable, and specifies the general operations of the Commission including on a full horizontal equalisation basis; but the annual reporting requirements. b. must ensure that no local governing body will be allocated The Australian Government’s Local Government (Financial an amount in a year, that is less than the amount that Assistance) Act 1995 provides for the basis of the allocation would be allocated to the body if 30 per cent of the of financial assistance by each Local Government Grants amount to which the State/Territory is entitled, in respect Commission to its respective local governing bodies in its of the year, was allocated among local governing bodies state and/or the Northern Territory. on a per capita basis. The Australian Government legislation also stipulates that Local government councils incorporated under either there must be a set of national principles formulated in writing the municipal or community government provisions of the which are to guide the respective Local Government Grants Northern Territory Local Government Act are, like those Commissions in the allocation of funds to local governing bodies similarly incorporated in other States, eligible to receive within their own jurisdictions. Commonwealth financial assistance as of right. Up to The number of national principles currently stands at seven 16 October 2007, Associations that had not been formally - six applying to the allocation of general purpose grants and incorporated under that Act, but had been approved by one applying to the allocation of local road grants. The national the respective Commonwealth and Northern Territory principles are detailed at Appendix A. Governments as local governing bodies, were also included in the distribution of Commonwealth financial assistance and local roads grants. A list of these associations is shown at Appendix C. From 17 October 2008 these previous local governing bodies were converted into community government councils under the Local Government Act and later subsequently linked to the prospective shires under restructuring orders. A list of the established councils is at Appendix D.

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 7 Organisation and People Organisation and People

Membership

The Local Government Grants Commission Act 1986 provides for a Commission of four members, consisting of: • a Chairman appointed by the Minister; • two members appointed by the Minister; one representing the interests of municipal councils and the other • the Chief Executive Officer (CEO) of the Agency primarily representing the interests of community government responsible to the Minister for the administration of the councils and approved local governing bodies. Act, or his delegate; and

In 2007-2008 the members of the Commission were:

Mr Robert Beadman (Appointed Chairman – 1 November 2002) Mr Nick Scarvelis (CEO’S delegate – resigned 22 May 2008) Ms Evelyn Robinson (CEO’S delegate – appointed 23 May 2008) Ms Frances Kilgariff (Representing municipal councils – appointed 7 October 2005 for the period to and including 31 August 2008) Mr Maurie Ryan (Representing community government councils – resigned 16 October 2007) Ms Anne Perry (Representing community government councils – appointed 17 March 2008 for the period to and including 31 August 2011) Mr John Bailey Deputy of Ms Kilgariff Mrs Margaret Vigants Deputy of Ms Perry

In 2007-2008 the Accountable Officer of the Commission was:

Mr Abdus Sattar (Accountable Officer - appointed 15 August 2007)

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 9 Organisation and People

Members’ Profiles

Robert Beadman Evelyn Robinson Bob was appointed Secretary to the Department of Lands, Evelyn commenced as Executive Director of Local Government, Housing and Local Government and CEO to the Office of Department of Local Government and Housing, in 2008. Evelyn Aboriginal Development on 31 October 1994. He retired is currently overseeing the implementation of Local Government from these positions on 18 December 2001. Reform in the Northern Territory. She represents the Department on the Australian Local Government Women’s Association Since 1973, Bob has been involved in Aboriginal affairs at National Steering Committee and is a member of the NT Legal senior levels in the Commonwealth Department of Aboriginal Practitioner Disciplinary Tribunal. Affairs, and previously worked in the Top End and Central Australia on separate occasions. He acted at the Deputy Evelyn has in excess of twenty five years management Secretary level on numerous occasions. experience in both public and private sector and has authored publications relevant to business, economic and social Career highlights include: Working with Torres Strait Islanders – development. She has guest lectured at Queensland and Griffith at the Prime Minister’s request – on Australian’s International Universities on Social Consultancy and Large Scale Community Border with Papua New Guinea, two extended periods as Consultation Processes. Senior Private Secretary to the Minister for Aboriginal Affairs: and representing Australia at the International Labour Organisation Evelyn has served on Boards for national business councils, and the United Nations Working Group on Indigenous peoples. university and research foundations plus economic and industry associations. Prior to joining the Department her most recent In the Territory highlights have included reform of the approach roles were CEO of the Northern Territory Seafood Council and to Local Government, Public Housing Policy and Library Grants Executive Director NT Division, Property Council of Australia. distribution methodology. Nick Scarvelis Frances Kilgariff Fran was born in Alice Springs and grew up in the town, Nick has been the Executive Director Governance of the where her family has been since the 1920’s. She has five Department of Local Government, Housing and Sport since adult children, four of whom have defied national trends and the creation of the new division in January 2005. He was returned to employment in Alice Springs after graduating from previously the Department’s Director of Indigenous Housing universities in coastal cities. and Regional Director Southern. Her early education was in Alice Springs and completed at a He has worked across a range of social, economic and boarding school in Adelaide. She trained as a radiographer and infrastructure policy areas and has several years of local worked in hospitals around Australia and overseas. She later government experience in the Territory and South Australia gained a Bachelor of Arts from the University of New England as a council chief executive and director with the South majoring in Prehistoric Archaeology. She has a Diploma of Australian Local Government Association. He worked for many Education from Murdoch University and taught at a local years in multicultural affairs following ten years as a teacher private school for eleven years. and senior curriculum development officer. Fran was an Alderman on the Alice Springs Town Council for Nick resigned as Director Local Governance on 22 May 2008 six years and Mayor from 2000 until May 2008. and subsequently his membership as the CEO’s delegate also finished. Fran represents the council on many committees including the Masters Games Advisory Committee, the Town Camps Implementation Committee, the Alice Springs Alcohol Management Committee, the Solar Cities Committee and the Local Government Reform Advisory Committee. Fran is also on the Development Consent Authority and a commissioner on the Northern Territory Grants Commission. Her other community involvement includes being on the board of the St John Ambulance of the Northern Territory and on the board of the YMCA Central Australia. In her (somewhat rare) spare time, Fran enjoys going to the gym, swimming and bike riding. She is an avid reader and does the occasional bit of gardening under sufferance.

10 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Organisation and People

Maurie Ryan John Bailey Maurie Japarte Ryan is a descendent of the Gurindji Nation born John arrived in Darwin in January 1977, with his wife Margot, at Wavehill Cattle Station 940 kms south west of Darwin on the to begin his working career as a science teacher at Darwin High Victoria River and the edge of the Tanami Desert. He is a member School. He progressed within education from teaching science of the Northern Territory Stolen Generation and former Chair of and biology to positions as school counselor and guidance the Northern Territory Stolen Generations, Northern Area. officer. After further study he qualified as a psychologist and went into private practice. Maurie is a father, grandfather, great grandfather, uncle, brother, nephew and grandson to many Indigenous and In 1989 he entered politics being elected to the Legislative non-Indigenous Australians throughout the Northern Territory. Assembly in the seat of Wanguri. During his 10 years in the He was a member of the Australian Regular Army for 3 years. Labor Opposition he held many shadow portfolios and was Deputy Leader for much of that time. Maurie has been the Chairperson of Daguragu Community Government Council, Head of Kalkaringi Community Education John resigned from the Legislative Assembly in 1999. He then Centre School Council, Deputy Chair of the Central Land Council, sought election to Darwin City Council in 2000. His election in Executive member of Local Government Association of the 2000 was followed by re-election in May 2004. Northern Territory, on the Local Government Reform In August 2002 John was appointed as Chair of the newly Shire and Transition committees and Northern Territory formed Darwin Harbour Advisory Committee. Statehood Committee. Maurie has been a teacher for over 30 years, employed by both Margaret Vigants Northern Territory and Commonwealth Education and Health Margaret is a long term resident of the Northern Territory and has Departments. He is a very passionate Indigenous Territorian and lived in remote areas of the Territory for over 20 years. Margaret an outspoken one. Often labeled (which he does not mind) an is a former President of the Local Government Association of activist, radical and stirrer. the Northern Territory and was the President of the Timber Maurie believes education, employment and economics are Creek Community Government Council for a period of nine years keys to the betterment of the plight of Indigenous Territorians, immediately prior to her relocation to Darwin during the year. if given a chance. He detests all political parties and many Margaret is a foundation member of the Statehood Steering bureaucrats throughout Australia. Committee and currently works for an organisation which Maurie resigned as a member from the Northern Territory Grants trains doctors to be General Practitioners. Commission on 16 October 2007 as a result of his candidacy in the seat of Lingiari in the 2007 elections and the potential for a perceived conflict of interest.

Administration and Staffing

The costs of operation of the Commission for the year were met The Executive Officer, Mr Abdus Sattar and Mrs Donna Hadfield by funds appropriated to the Department of Local Government, of the Department of Local Government, Housing and Sport, Housing and Sport. The operational expenditure for 2007-2008 coordinated the visitation program and assisted with the was $77,956 compared to $152,215 in 2006-2007. Commission’s activities by providing executive support to the Commission.

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 11 Summary of Activities in 2007-2008 Summary of Activities in 2007-2008

Review of the Financial Assistance The Commission determined that the cost adjustors of location, Grants Methodology dispersion and Aboriginality are to be used following an extensive review and data collection process to ensure the Following a request from the then Minister of Local Government, adjustors can be explained and supported by meaningful and the Northern Territory Grants Commission (NTGC) commenced a relevant information. These new cost adjustors will be used comprehensive and detailed review of the methodology used for the 2008-2009 allocations and will be the forth year of a to distribute Commonwealth general purpose and identified phase-in period. roads financial assistance grants, and the processes of the Commission in 1998. Annual Conference However, because of the review of the Local Government The National Conference of Local Government Grants (Financial Assistance) Act 1995 by the Commonwealth Commissions was held at the Novotel North Beach, Grants Commission at the request of the Commonwealth, Wollongong, NSW, in October 2007. the Commission postponed final consideration of the The theme of the conference was “Are the Grants Commissions methodology pending outcome of that review. Truly Independent” as well as infrastructure depreciation. In 2002-2003 the Commission issued a discussion paper to Papers were presented by Mr Robert Tanton, Principal Research facilitate the finalisation of our review. Workshops to explain Fellow, University of Canberra; Mr Adrian Beresford-Wylie, Chief the methodology were held during the 2003-2004 year, Executive, Australian Local Government Association; Mr Alec however, due to the late appointment of commission members, Bamber, Assistant Director and Project Manager, ABS; Mr Bruce the review was not finalised. Helman, Program Manager, Valuation Audit, Department of In January 2005, the Commission released a progress report Lands; Mr Dermot Doherty, Assistant Secretary, Commonwealth and a summary of submissions received to local governing Grants Commission and Mr Barry O’Neil, Director Local bodies and followed with workshops in Darwin, Katherine, Government, Department of Transport and Regional Services. Tennant Creek and Alice Springs. Delegates and partners were also invited to attend the official During the 2005-2006 year the Commission looked at the conference dinner at the Lagoon Restaurant, Stuart Park expenditure categories and cost adjustors in use in order to North Wollongong. conclude the review of the methodology. It was resolved that the expenditure categories be expanded to the nine Australian Executive Officers’ Meeting Bureau of Statistics (ABS) categories and that the cost adjustors In February 2008 the National Office of Local Government be rearranged to apply to those categories. The review has now sponsored a meeting of the Executive Officers from each state been completed. in Canberra. The Executive Officer, Mr Abdus Sattar, attended this meeting. The review highlighted the need for a regular process of continual improvement to further refining the revenue and Visits to Local Governing Bodies expenditure categories and appropriate cost adjustors. Due to the Northern Territory’s local government reform then In 2006-2007 the Commission continued to apply its revised being undertaken, the Commission agreed it was prudent to methodology. The allocations for the 2007-2008 year were the suspend visits to communities and their outstations. It was third year of a five year phase-in period. agreed that visitation on a shire and municipal basis would In 2007-2008 the Minister for Local Government announced resume in 2008-2009. New Local Government in the Northern Territory. As a result the Public Hearings Commission issued a discussion paper to invite comments from interested Local Governing Bodies on the options available to In accordance with section 11 of the Commonwealth legislation, the Commission in developing a methodology that adapts to the Commission held two public hearing during the year. The the changed structure. The paper highlighted the need for the location of the public hearing held during the year is shown in Commission to re-visit and amend the cost adjustors that are Schedule 11. used in the methodology.

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 13 Summary of Activities in 2007-2008

Financial Data Annual Financial Statements The introduction of new financial reporting requirements in Regulation 11 of the Local Government (Accounting) 2003 has given the Commission the ability to view the annual Regulations stipulates that a copy of the local governing bodies income and expenditure of individual councils and to determine Audited Annual Financial Statements be forwarded to the the total income and expenditure of local governments in the Chairman of the Northern Territory Grants Commission no later Northern Territory. This now provides the Commission with the than 31 October. opportunity, for the first time, to move away from a theoretical For financial year 2006-2007, 40 local governing bodies failed assessment to a more practical assessment based on real to lodge their Annual Financial Statements by the date specified. financial data. Schedule 12 lists those 40 local governing bodies. The total revenue and expenditure raised by councils in the 2006-2007 financial year amounted to $394 million and Submissions $392 million respectively. Included in these amounts are There were no submissions presented to the Commission at the revenues and expenditures that are not considered to strictly public hearings or visits during the year. relate to local governments. Therefore for the 2008-2009 allocations the Commission determined local government Payments 2007-2008 income to be $97.047 million and local government During 2007-2008 the grants continued to be paid in quarterly expenditure to be $172.591 million. installments. The total payments to local governing bodies Data Collection Returns during the year are summarised below: In November 2003, the Local Government and Regional 10 September 2007 $6,341,801 Development Division of the Department of Community 15 November 2007 $6,341,801 Development, Sport and Cultural Affairs in conjunction with 14 February 2008 $6,341,801 the Northern Territory Grants Commission, introduced a new method for the collection of local government financial data 15 May 2008 $6,341,802 and performance information. Up until then, local governments Total Payments $25,367,205 had received separate data collection requests from the Department, the Grants Commission and the ABS. In most Estimated Entitlement 2007-2008 cases the data collected by the three agencies overlapped and the requirement for local governments to report to three The estimated entitlements for 2007-2008 are based on separate entities was unnecessary and time consuming. In Commonwealth estimates of the annual CPI and the Territory’s recognition of this, the new return simplified the collection share of the national population. process, standardised local government data definitions and reduced the amount of data being collected to what was Entitlement 2007-2008 considered to be necessary and useful. The Commonwealth estimates of the annual CPI and the As part of the new collection process, the return was distributed Territory’s share of the national population was lower than the to local governments by e-mail and permitted the local actual CPI and population. This resulted in the entitlement for governments to forward the completed return to a central 2007-2008 being underestimated for both the general purpose e-mail address. This method proved to be successful and and roads component. An underpayment totalling $141,202 will be continued in future years. for general purpose and $119,005 for roads. Therefore the overall underpayment totalled $260,207. Adjustments have The data collected on the returns is used by the Grants been made across all councils based on the data used for the Commission to assess local governments’ financial assistance distribution of the estimated entitlement for 2007-2008. grants by the ABS in the Government Finance Statistics and national accounts and by the Department in its performance measurement publications.

14 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Summary of Activities in 2007-2008

Cash Entitlement 2008-2009 Revenue and Expenditure Assessments of The cash entitlement for 2008-2009 is the Estimated Local Governments Entitlement for the year plus the Underpayment for The Commonwealth Grants Commission stated in its “Review of general purpose and roads in 2007-2008. the Operation of the Local Government (Financial Assistance) Communication with Councils Act 1995” (Chapter 3 - Goal 1) that as a minimum, local government grant commissions’ (LGGCs) annual reports In accordance with its policy to keep all Northern Territory should provide information on: councils informed about its operations and latest developments, • the grant outcomes of all local governments in the State; the Commission corresponds on a regular basis with individual councils on many issues. The following list summarises the main • the expenditure and revenue assessments of all local item sent to all councils during the year. governments in the state; and

Subject Date • the key drivers of LGGCs’ expenditure and revenue assessments. Letters sent electronically advising of the 3 September 2007 requirement to lodge an annual return Accordingly, revenue and expenditure assessments are included. Letters advising of the estimated entitlements for 17 September 2007 (Schedules 8 and 9). Key drivers and a matrix of how the the 2007-2008 General Purpose Grant disability factors are applied is also included (see Appendix B). Distribution of the NTGC Annual Report 5 December 2007

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 15 Recommendations Recommendations

Chairman’s Letter

Our ref: NTCG2008/2 Mr Robert Knight MLA Minister for Local Government GPO Box 3146 DARWIN NT 0801

Dear Minister

Thank you for your letter advising me of the amounts Recommendation 3 showing the net cash to be distributed to available for allocation as financial assistance grants under councils this year. the Commonwealth’s Local Government (Financial Assistance) Last year, I advised the full impact of the previous methodology Act 1995 for the 2008-2009 financial year. review, which was introduced in 2004-2005, would not be In accordance with section 12(1)(a) of the Local Government felt by most councils until the 2008-2009 financial year. It Grants Commission Act, I am now pleased to present to you was becoming evident that the small councils, that is, councils the Commission’s recommendations for the distribution of these with small populations and service delivery areas, could not be grants. In making the recommendations, I confirm that: sustained by these financial assistance grants. a. all general purpose recommendations conform with Following the Northern Territory Government’s announcements section 6(2)(b) of the Commonwealth’s Local Government about local government reform, the Commission issued a (Financial Assistance) Act 1995 in allocating amounts that discussion paper to all councils in June 2007 highlighting issues are not less than those to which local governing bodies that need to be considered in its methodology for the new would be eligible to receive if 30 per cent of the total to structure. The paper highlighted the need for the Commission which the Northern Territory is entitled was distributed to re-visit and amend the cost adjustors that are used in the among local governing bodies on a per capita basis; methodology. A total of five submissions were received from Councils and they supported a review of the cost adjustors to b. the Commission held public hearings and permitted local suit the structure of the new shires. governing bodies and the Local Government Association of the Northern Territory to make submissions in connection The Commission determined that the cost adjustors of location, with the recommendations in accordance with section dispersion and Aboriginality are to be used following an 11(2)(c)(i) & (ii) of the Local Government (Financial extensive review and data collection process to ensure the Assistance) Act 1995, adjustors can be explained and supported by meaningful and relevant information. c. road funds were divided on weighted road length but, in addition, continued to include a base or minimum For the purpose of these allocations, financial data in respect of figure of $10,000 for all councils on the basis that a derived the 2006-2007 financial year, the latest available, was used. figure of less than this amount would not be commensurate The Commission’s annual report is currently being prepared and with a realistic acceptance of road maintenance and will be forwarded to you in accordance with section 16 of the responsibility; and Local Government Grants Commission Act in due course. 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 Yours sincerely to the amount of money provided to the Territory under the Local Government (Financial Assistance) Act 1995 for the 2008-2009 financial year. There are three recommendations, which consist of: Recommendation 1 showing the distribution of the estimated Robert Beadman entitlement for 2008-2009; Chairman Recommendation 2 showing the distribution of an 4 September 2008 underpayment in 2007-2008, and

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 17 Recommendations

Recommendation 1 Schedule of Estimated Entitlement

In accordance with section 12 of the Local Government Grants is entitled (ie $13,317,249) was distributed among local Commission Act, the Commission recommends the following governing bodies on a per capita basis. grants to local governing bodies: Roads funds totaling $13,474,784 were divided on weighted All general purpose recommendations conform with section road length. Additionally, a base or minimum figure of $10,000 6(2)(b) of the Commonwealth Local Government (Financial has been adopted for all councils as it is felt that a derived figure Assistance) Act 1995 in allocating amounts that are no less of less than this amount was not commensurate with a realistic than those to which local governing bodies would be eligible to acceptance of road maintenance and responsibility. receive if 30 per cent of the total to which the Northern Territory

Council Population FAA ($) Roads ($) Municipality of Darwin 73,998 1,439,956 1,607,650 Tiwi Islands Shire 2,449 254,178 751,190 Municipality of Palmerston 26,471 647,355 596,685 Municipality of Litchfield 17,856 347,478 1,983,781 Belyuen Shire 196 15,902 27,945 Coomalie Shire 1,233 34,055 331,015 Wagait Shire 328 11,874 47,528 West Arnhem Shire 6,339 947,160 971,974 East Arnhem Shire 9,134 2,058,093 871,573 Victoria Daly Shire 6,152 1,151,987 1,296,217 Municipality of Katherine 9,805 630,723 538,268 Roper Gulf Shire 6,217 1,346,322 817,106 Barkly Shire 7,452 1,628,529 406,473 Municipality of Alice Springs 26,681 874,491 821,993 Central Desert Shire 4,442 916,032 729,469 MacDonnell Shire 6,554 1,013,114 690,969 Trust Account (LGANT) N/A 984,948 Total 205,307 $13,317,249 $13,474,784

18 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Recommendations

Recommendation 2 Schedule of Under/Overpayment 2007-2008

The “Estimated Entitlements” in 2007-08 were $12,451,890 The underpayments have been distributed on the same basis as general purpose and $12,695,932 roads. The actual the original distribution of the estimated entitlements. entitlements for that year were $12,590,104 general purpose and $12,836,795 roads. Underpayments totalling $138,214 and $140,863 have therefore occurred.

Paid Entitlement Actual Entitlement Council Difference 2007-2008 2007-2008

General General General Roads ($) Roads ($) Roads ($) Total ($) Purpose ($) Purpose ($) Purpose ($) Aherrenge 106,125 29,547 107,303 29,875 1,178 328 1,506 Ali Curung 75,244 60,482 76,079 61,153 835 671 1,506 Alice Springs 987,699 786,233 998,662 794,956 10,963 8,723 19,686 Alpurrurulam 130,503 43,356 131,952 43,837 1,449 481 1,930 Amoonguna 38,590 11,699 39,018 11,829 428 130 558 Angurugu 204,874 160,157 207,148 161,933 2,274 1,776 4,050 Anmatjere 244,412 118,601 247,125 119,917 2,713 1,316 4,029 Aputula 39,423 32,367 39,861 32,726 438 359 797 Areyonga 37,360 44,996 37,775 45,495 415 499 914 Arltarlpilta 51,426 9,006 51,997 9,106 571 100 671 Belyuen 31,346 26,730 31,694 27,027 348 297 645 Borroloola 152,678 70,324 154,373 71,104 1,695 780 2,475 Coomalie 164,065 308,837 165,886 312,264 1,821 3,427 5,248 Cox Peninsula 26,841 41,068 27,139 41,524 298 456 754 Daguragu 119,071 77,993 120,393 78,858 1,322 865 2,187 Darwin 1,335,428 1,500,094 1,350,251 1,516,738 14,823 16,644 31,467 Elliott 83,020 46,192 83,941 46,705 921 513 1,434 Galiwinku 353,952 177,364 357,881 179,332 3,929 1,968 5,897 Gapuwiyak 201,883 152,458 204,124 154,150 2,241 1,692 3,933 Ikuntji 28,998 38,797 29,320 39,227 322 430 752 Imanpa 33,656 24,596 34,030 24,869 374 273 647 Jabiru 136,753 84,665 138,271 85,604 1,518 939 2,457 Jilkminggan 29,675 25,955 30,004 26,243 329 288 617 Kaltukatjara 67,288 89,685 68,035 90,680 747 995 1,742 Katherine 791,178 500,928 799,960 506,486 8,782 5,558 14,340 Kunbarllanjnja 215,090 473,600 217,477 478,855 2,387 5,255 7,642 Lajamanu 168,954 99,206 170,829 100,307 1,875 1,101 2,976 Litchfield 760,745 1,839,997 769,189 1,860,412 8,444 20,415 28,859 Ltyentye Apurte 86,895 88,175 87,859 89,153 964 978 1,942 Maningrida 431,176 212,749 435,962 215,109 4,786 2,360 7,146 Marngarr 35,215 23,811 35,606 24,075 391 264 655 Table continues on following page

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 19 Recommendations

Continued from previous page

Paid Entitlement Actual Entitlement Council Difference 2007-2008 2007-2008

General General General Roads ($) Roads ($) Roads ($) Total ($) Purpose ($) Purpose ($) Purpose ($) Mataranka 20,304 26,448 20,529 26,741 225 293 518 Milingimbi 246,004 58,505 248,735 59,154 2,731 649 3,380 Minjilang 37,358 73,683 37,773 74,501 415 818 1,233 Nauiyu Nambiyu 77,275 163,601 78,133 165,416 858 1,815 2,673 Nganmarriyanga 73,390 77,174 74,205 78,030 815 856 1,671 Ntaria 100,062 78,029 101,173 78,895 1,111 866 1,977 Numbulwar 236,928 128,268 239,558 129,691 2,630 1,423 4,053 Nyirranggulung 237,900 337,050 240,541 340,790 2,641 3,740 6,381 Nyirripi 51,506 108,633 52,078 109,838 572 1,205 1,777 Palmerston 781,025 542,151 789,694 548,166 8,669 6,015 14,684 Papunya 62,574 55,895 63,269 56,515 695 620 1,315 Peppimenarti 48,423 156,345 48,960 158,080 537 1,735 2,272 Pine Creek 40,308 114,484 40,755 115,754 447 1,270 1,717 Ramingining 132,631 111,511 134,103 112,748 1,472 1,237 2,709 Tapatjatjaka 40,235 22,562 40,682 22,812 447 250 697 Tennant Creek 517,047 149,018 522,786 150,671 5,739 1,653 7,392 Thamarrurr 522,745 327,981 528,547 331,620 5,802 3,639 9,441 Timber Creek 37,314 214,858 37,728 217,242 414 2,384 2,798 Tiwi Island l 481,702 718,510 487,049 726,482 5,347 7,972 13,319 Umbakumba 88,293 98,734 89,273 99,829 980 1,095 2,075 Urapuntja 231,749 60,195 234,321 60,863 2,572 668 3,240 Walangeri Ngumpinku 90,480 60,272 91,484 60,941 1,004 669 1,673 Wallace Rockhole 19,079 17,150 19,291 17,340 212 190 402 Walungurru 84,726 129,953 85,666 131,395 940 1,442 2,382 Warruwi 72,152 84,992 72,953 85,935 801 943 1,744 Watiyawanu 41,080 28,527 41,536 28,844 456 317 773 Yirrkala 173,986 60,801 175,917 61,476 1,931 675 2,606 Yuelamu 50,368 77,136 50,927 77,992 559 856 1,415 Yuendumu 263,786 285,152 266,714 288,316 2,928 3,164 6,092 Yugul Mangi 421,897 192,030 426,580 194,161 4,683 2,131 6,814 Trust Account (LGANT) N/A 936,616 N/A 947,008 N/A 10,392 10,392 $12,451,890 $12,695,932 $12,590,104 $12,836,795 $138,214 $140,863 $279,077

20 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Recommendations

Recommendation 3 Schedule of Cash Payment

Estimated Cash Entitlement Council 2008-2009

General Purpose ($) Roads ($) Total ($) Municipality of Darwin 1,454,779 1,624,294 3,079,073 Tiwi Islands Shire 259,525 759,162 1,018,687 Municipality of Palmerston 656,024 602,700 1,258,724 Municipality of Litchfield 355,922 2,004,196 2,360,118 Belyuen Shire 16,250 28,242 44,492 Coomalie Shire 35,876 334,442 370,318 Wagait Shire 12,172 47,984 60,156 West Arnhem Shire 957,067 982,289 1,939,356 East Arnhem Shire 2,074,042 880,929 2,954,971 Victoria Daly Shire 1,163,186 1,309,450 2,472,636 Municipality of Katherine 639,505 543,826 1,183,331 Roper Gulf Shire 1,358,525 825,761 2,184,286 Barkly Shire 1,641,223 410,787 2,052,010 Municipality of Alice Springs 885,454 830,716 1,716,170 Central Desert Shire 925,250 737,211 1,662,461 MacDonnell Shire 1,020,663 698,318 1,718,981 Trust Account (LGANT) N/A 995,340 995,340 Total $13,455,463 $13,615,647 $27,071,110

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 21 Schedules Schedules

Schedule 1 Schedule 2 Population Northern Territory Grants Commission Cost Adjustors and Key Drivers 2008-2009

Council Population Indigenous Council Location Dispersion Municipality of Darwin 73,998 Background Tiwi Islands Shire 2,449 Municipality of Darwin 1.00 1.00 1.09 Municipality of Palmerston 26,471 Tiwi Islands Shire 1.30 1.39 1.97 Municipality of Litchfield 17,856 Municipality of Palmerston 1.00 1.00 1.13 Belyuen Shire 196 Municipality of Litchfield 1.29 1.10 1.07 Coomalie Shire 1,233 Belyuen Shire 1.29 1.00 1.98 Wagait Shire 328 Coomalie Shire 1.30 1.00 1.27 West Arnhem Shire 6,339 Wagait Shire 1.29 1.00 1.10 East Arnhem Shire 9,134 West Arnhem Shire 1.80 1.50 1.81 Victoria Daly Shire 6,152 East Arnhem Shire 2.00 2.00 1.97 Municipality of Katherine 9,805 Victoria Daly Shire 2.00 1.94 1.88 Roper Gulf Shire 6,217 Municipality of Katherine 1.45 1.00 1.27 Barkly Shire 7,452 Roper Gulf Shire 2.00 2.00 1.93 Municipality of Alice Springs 26,681 Barkly Shire 2.00 1.65 1.75 Central Desert Shire 4,442 Municipality of Alice Springs 1.50 1.00 1.30 MacDonnell Shire 6,554 Central Desert Shire 2.00 2.00 1.96 Total 205,307 MacDonnell Shire 2.00 2.00 1.94

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 23 Schedules

SCHEDULE 3 Councils Local Road Lengths

Total Road Length Council Area Council Kerbed Sealed Gravel Formed Unformed (kms) (sq. kms.) Municipality of Darwin 399.38 81.81 0.00 0.00 0.00 481.19 141.75 Tiwi Islands Shire 3.23 27.55 220.85 236.80 437.00 925.43 7,500.84 Municipality of Palmerston 141.23 55.89 0.33 0.00 0.00 197.45 56.40 Municipality of Litchfield 13.80 530.83 171.50 19.40 0.00 735.53 3,072.37 Belyuen Shire 0.00 2.35 0.00 14.00 67.70 84.05 41.60 Coomalie Shire 1.98 40.19 114.14 8.12 0.00 164.43 1,512.14 Wagait Shire 0.00 12.73 0.00 0.00 0.00 12.73 5.68 West Arnhem Shire 18.05 49.52 298.05 38.70 751.70 1,156.02 49,698.26 East Arnhem Shire 21.00 45.49 171.28 215.51 778.50 1,231.78 33,302.42 Victoria Daly Shire 10.45 82.30 383.51 225.60 420.14 1,122.00 167,575.00 Municipality of Katherine 45.55 116.58 0.80 0.00 21.47 184.40 7,421.00 Roper Gulf Shire 9.08 48.27 224.48 154.70 538.55 975.08 185,175.81 Barkly Shire 34.22 28.35 19.58 53.42 485.73 621.30 322,693.27 Municipality of Alice Springs 146.31 88.77 15.83 2.37 0.00 253.28 327.43 Central Desert Shire 3.13 41.00 18.72 338.00 1,710.10 2,110.95 282,089.76 MacDonnell Shire 0.00 47.14 44.87 296.40 1,347.20 1,735.61 268,784.20 Trust Account (LGANT) 0.45 4.09 278.01 487.09 1,405.20 2,174.84 n/a Totals 847.86 1,302.86 1,961.95 2,090.11 7,963.29 14,166.07 1,329,397.93

24 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Schedules

SCHEDULE 4 Reconciliation of Local Government Income and Expenditure

Reconciliation of Actual Revenue and Expenditure as Supplied by Local Governing Bodies 2006-2007

Actual Revenue 2006-2007 $ Identified Local Government Revenue $ Rates and Annual Charges 84,578,353 General Rates 67,461,000 Fines and Penalties 1,192,2402 Domestic Waste 8,660,342 Grants and Subsidies 198,972,332 Garbage Other 4,798,075 Fuel Rebate 182,398 Poll Tax 3,222,989 Assets Acquired Without Cost or Below Fair Value 730,478 Parking 4,157,651 User Fees and Charges 47,311,054 Interest 8,747,630 Interest Income 8,747,630 Total Identified Local $97,047,687 Profit/Loss on Sale of Assets -55,097 Government Revenue Other Current Revenue (n.e.c) 44,756,178 Other Capital Revenue 8,322,289 Identified Local Government Income $ Total Actual Revenue 2006-2007 $394,737,855 General Public Service 44,382,548 Public Order and Safety 2,626,042 Actual Expenditure 2006-2007 $ Economic Affairs 32,417,895 Employee Expenses 146,448,007 Environment Protection 17,653,395 Materials and Contracts 111,677,676 Housing and Community Amenities 36,766,925 Depreciation 71,453,881 Health 5,409,567 Bad Debts 658,168 Recreation, Culture and Religion 24,595,715 Current Transfers Expenses 174,372 Education 1,152,151 Capital Transfer Expenses 290,794 Social Protection 7,586,816 Other Expenses 61,809,105 Total Identified Local $172,591,054 Total Actual Expenditure 2006-2007 $392,512,003 Government Expenditure

Balanced Budget Approach used for the 2008-2009 Allocations $ Identified Local Government Revenue 97,047,687 50% Roads to Recover Grants 2007-2008 2,334,906 Library Grants 2007-2008 3,265,854 Road Grants 2007-2008 11,759,316 Budget Term 58,183,291 Total Revenue $172,591,054

Identified Local Government Expenditure 172,591,054 Total Expenditure $172,591,054

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 25 Schedules

SCHEDULE 5 Local Government Income 2006-2007

Rates Domestic Garbage Parking Council Poll Tax ($) Interest ($) TOTAL ($) Levied ($) Waste ($) Other ($) Restricted ($) Aherrenge 2,273 2,273 Ali Curung 70,721 70,721 Alice Springs 10,675,580 1,367,009 902,987 965,193 13,910,769 Alpurrurulam 9,439 9,439 Amoonguna 40,000 66,232 106,232 Angurugu 159,279 159,279 Anmatjere 63,210 63,210 Aputula 41,649 15,226 56,875 Areyonga 5,000 29,605 34,605 Arltarlpilta 10,387 41,505 51,892 Belyuen 8,497 28,953 37,450 Borroloola 82,095 9,620 91,715 Coomalie 33,761 404,086 78,418 516,265 Cox Peninsula 26,167 26,167 Daguragu 115,000 78,000 193,000 Darwin 37,585,400 4,214,624 3,743,516 2,370,698 4,157,651 52,071,889 Elliott 53,235 7,682 60,917 Galiwinku 55,843 58,060 113,903 Gapuwiyak 18,609 18,609 Ikuntji 0 Imanpa 5,000 5,000 Jabiru 23,634 112,455 67,411 41,281 244,781 Jilkminggan 177,673 33,177 210,850 Kaltukatjara 109,250 71,526 180,776 Katherine 1,038,501 603,246 637,310 2,279,057 Kunbarllanjnja 74,270 192,305 266,575 Lajamanu 99,000 99,000 Litchfield 11,361,932 652,874 12,014,806 Ltyentye Apurte 23,832 45,571 69,403 Maningrida 42,274 42,274 Marngarr 77,773 84,529 162,302 Mataranka 6,341 6,341 Milingimbi 51,949 51,949 Minjilang 21,950 128,313 150,263 Nauiyu Nambiyu 105,414 139,075 244,489 Nganmarriyanga 118,282 18,039 136,321 Ntaria 19,649 19,649 Numbulwar 32,958 32,958 Nyirranggulung 127,548 320,406 447,954 Nyirripi 64,178 64,178

26 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Schedules

Local Government Income 2006-2007 continued Rates Domestic Garbage Parking Council Poll Tax ($) Interest ($) TOTAL ($) Levied ($) Waste ($) Other ($) Restricted ($) Palmerston 6,704,892 2,037,898 885,045 9,627,835 Papunya 16,663 16,663 Peppimenarti 27,388 16,438 43,826 Pine Creek 30,236 30,236 Ramingining 16,288 16,288 Tapatjatjaka 15,966 15,966 Tennant Creek 71,061 325,110 50,400 92,457 539,028 Thamarrurr 487,659 68,745 556,404 Timber Creek 29,724 29,724 Tiwi Islands 683,959 288,635 972,594 Umbakumba 40,429 95,084 135,513 Urapuntja 44,000 44,000 Walangeri Ngumpinku 69,000 69,000 Wallace Rockhole 3,675 1,450 5,125 Walungurru 45,784 45,784 Warruwi 27,972 25,465 53,437 Watiyawanu 8,927 8,927 Yirrkala 285,123 40,484 325,607 Yuelamu 15,000 36,000 51,000 Yuendumu 89,248 89,248 Yugul Mangi 47,346 47,346 Total $67,461,000 $8,660,342 $4,798,075 $3,222,989 $8,747,630 $4,157,651 $97,047,687

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 27 Schedules

Schedule 6 Actual Local Government Expenditure 2006-2007 133,727 749,311 376,917 778,372 765,791 272,901 218,491 268,175 692,313 323,449 939,709 568,234 688,378 410,000 1,197,790 1,159,519 2,761,335 1,032,815 5,618,318 5,810,361 1,052,260 1,495,439 4,321,069 2,102,600 2,620,939 2,939,829 1,246,000 13,839,723 3,846,994 1,086,000 45,546,725 Actual Local Local Actual Expenditure Expenditure Government Government 2006-2007 ($) 0 0 0 0 0 0 0 0 0 0 0 Social Social 10,756 18,266 29,405 65,648 93,885 43,147 48,100 112,776 150,375 591,123 398,635 124,593 181,103 105,700 638,027 206,604 369,355 102,240 246,232 146,200 Protection ($) Protection 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,167 17,400 21,237 186,966 116,707 101,268 Education ($) Education 0 0 0 46,772 41,243 18,279 72,918 43,242 25,852 30,795 61,296 60,281 67,150 60,025 61,609 32,830 17,062 54,500 -14,182 107,077 439,107 200,860 268,000 739,106 884,529 118,400 609,760 127,336 138,799 1,382,186 Recreation, Recreation, Culture and Culture Religion ($) Religion 15,565,837 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,737 6,100 59,946 33,703 21,741 18,724 50,027 458,052 324,319 531,962 113,091 278,851 Health ($) Health 1,555,502 1,198,026 0 0 9,200 2,927 23,137 31,096 209,493 270,806 541,169 270,800 128,598 183,403 184,264 440,663 257,740 150,584 120,800 317,532 224,102 116,612 260,813 843,289 911,487 278,851 2,332,249 2,457,337 3,327,694 1,521,744 1,602,980 1,079,961 Community Community -1,621,983 Housing and Housing Amenities ($) Amenities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 240 9,609 2,000 1,000 6,700 65,536 13,969 80,013 166,678 244,480 126,586 602,316 1,996,874 1,828,020 10,383,322 Protection ($) Protection Environmental Environmental 0 5,988 54,579 88,839 33,554 30,160 30,187 84,772 -22,779 272,901 391,879 139,700 471,726 583,997 110,234 111,900 239,701 538,900 159,588 Economic Economic Affairs ($) Affairs -933,156 -166,433 -131,456 -167,171 1,181,052 7,584,445 1,018,087 2,694,316 1,879,680 2,570,194 -3,652,541 -1,916,043 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,821 8,000 1,315 8,300 -4,260 14,445 14,426 26,076 15,197 56,430 24,648 12,207 474,478 169,185 849,929 247,695 Public Order Order Public and Safety ($) Safety and 0 Public Public 95,377 General General 736,227 286,387 290,319 179,408 657,773 146,762 127,005 253,594 161,855 199,247 354,600 416,674 869,041 499,304 328,323 122,100 876,010 127,518 357,048 814,830 361,608 418,300 675,338 494,893 495,278 -203,556 6,462,128 1,357,897 9,641,448 Services ($) Services Community Community Alpurrurulam Aherrenge Ali Curung Ali Curung Alice Springs Springs Alice Amoonguna Amoonguna Angurugu Angurugu Anmatjere Anmatjere Aputula Aputula Areyonga Areyonga Arltarlpilta Arltarlpilta Belyuen Belyuen Borroloola Borroloola Coomaile Coomaile Cox Peninsula Peninsula Cox Daguragu Daguragu Darwin Elliott Elliott Galiwinku Galiwinku Gapuwiyak Ikuntji Ikuntji Imanpa Imanpa Jabiru Jabiru Jilkminggan Jilkminggan Kaltukatjara Kaltukatjara Katherine Katherine Kunbarllanjnja Kunbarllanjnja Lajamanu Lajamanu Litchfield Litchfield Ltyentye Apurte Apurte Ltyentye Maningrida Marngarr Marngarr

28 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Schedules

Actual Local Government Expenditure 2006-2007 continued 295,111 519,572 633,051 450,931 582,165 662,522 562,936 628,259 383,838 599,558 846,403 7,472,512 1,152,324 2,292,751 2,397,150 1,151,999 9,132,100 1,902,871 2,226,961 2,467,555 5,027,833 2,032,274 2,650,143 2,219,585 1,085,720 1,252,000 1,400,592 1,047,000 1,097,000 13,554,854 Actual Local Local Actual Expenditure Expenditure 2006-2007 Government Government $172,591,054 0 0 0 0 0 0 0 0 Social Social 67,141 14,353 31,136 78,789 67,120 37,937 63,116 98,107 20,794 86,842 84,619 87,816 41,733 167,679 333,515 274,938 237,779 809,700 923,782 110,900 165,900 100,950 Protection $7,586,816 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,368 11,546 28,903 25,340 17,970 614,279 Education $1,152,151 0 0 0 0 0 58,785 20,990 60,657 22,368 40,674 93,720 72,275 33,900 94,000 46,242 88,099 17,381 42,960 36,210 Religion 129,217 109,408 177,747 199,521 231,792 188,970 179,729 305,531 301,858 243,134 539,878 Recreation, Recreation, Culture and Culture $24,595,715 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 944 6,408 Health 11,962 23,170 20,990 11,546 32,598 95,177 249,475 324,020 103,550 -123,054 $5,409,567 0 0 7,714 26,092 68,939 53,207 45,914 68,891 -81,338 634,650 248,861 346,188 206,807 367,947 151,915 270,690 324,200 122,000 157,629 422,128 310,108 696,140 919,684 -616,481 -171,630 -212,261 Amenities 1,961,945 7,371,167 3,213,454 3,375,017 Community Community Housing and Housing $36,766,925 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 82 969 3,000 11,806 87,666 43,543 51,200 10,206 91,244 20,222 650,000 141,687 318,494 386,724 309,209 Protection $17,653,395 Environmental Environmental 0 0 Affairs 54,423 81,394 83,379 43,334 -22,361 -39,457 -58,179 108,045 851,632 256,819 918,447 685,570 223,349 334,959 824,739 261,900 317,700 145,343 225,120 Economic Economic -408,355 -307,921 1,827,045 4,590,433 1,636,961 2,557,896 4,828,674 1,071,071 -1,960,865 $32,417,895 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 849 1,686 6,035 22,834 80,050 71,638 19,000 83,878 18,990 133,819 261,371 and Safety Public Order Order Public $2,626,042 4,365 Public Public Services General General 111,969 211,778 262,958 219,970 267,105 384,918 415,891 413,668 217,738 414,101 155,112 282,800 570,051 731,199 204,479 316,100 375,400 149,419 261,653 167,173 508,125 149,870 816,165 332,212 1,350,099 1,096,544 1,092,282 1,935,211 3,361,457 $44,382,548 Community Community Mataranka Milingimbi Milingimbi Minjilang Nauiyu Nambiyu Nambiyu Nauiyu Nganmarriyanga Nganmarriyanga Ntaria Ntaria Numbulwar Numbulwar Nyirranggulung Nyirranggulung Nyirripi Nyirripi Palmerston Palmerston Papunya Papunya Peppimenarti Peppimenarti Pine Creek Creek Pine Ramingining Ramingining Tapatjatjaka Tapatjatjaka Tennant Creek Creek Tennant Thamarrurr Thamarrurr Timber Creek Creek Timber Tiwi Islands Islands Tiwi Umbakumba Umbakumba Urapuntja Urapuntja Walangeri Walangeri Ngumpinku Wallace Rockhole Rockhole Wallace Walungurru Walungurru Warruwi Watiyawanu Watiyawanu Yirrkala Yirrkala Yuelamu Yuelamu Yuendumu Yuendumu Yugul Mangi Mangi Yugul Totals

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 29 Schedules

SCHEDULE 7 Assessed Revenue 2006-2007

Administration Rates Levied Domestic Garbage Poll Tax Parking Interest Total Assessed Revenue Council Location ($) Waste ($) Other ($) ($) Restrd. ($) ($) Revenue ($) Darwin City Council Darwin 37,585,400 3,121,394 3,743,516 4,157,651 2,370,698 50,978,659

Tiwi Islands Local Nguiu, 103,299 167,309 288,635 Government Council Pirlangimpi, Milikapiti Total Tiwi Islands Shire 103,299 167,309 288,635 559,244 Council

Palmerston City Council Palmerston 6,704,892 1,116,613 885,045 8,706,550

Belyuen Community Belyuen 8,287 13,421 28,953 50,661 Government Council

Coomalie Community Batchelor, 52,026 33,761 84,265 78,418 248,470 Government Council Adelaide River

Cox Peninsula Community Wagait Beach 13,842 22,420 26,167 62,429 Government Council

Litchfield Shire Council Bees Creek 11,361,932 753,229 652,874 12,768,035

Maningrida Council Inc. Maningrida 42,274 Jabiru Town Council Jabiru 23,634 67,411 41,281 Kunbarllanjnja Gunbalanya 192,305 Community Government Council Minjilang Community Inc. Minjilang 128,313 Warruwi Community Inc. Warruwi 25,465 Total West Arnhem 23,634 267,383 67,411 346,100 429,638 1,134,166 Shire Council

30 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Schedules

Assessed Revenue 2006-2007 continued

Administration Rates Levied Domestic Garbage Poll Tax Parking Interest Total Assessed Revenue Council Location ($) Waste ($) Other ($) ($) Restrd. ($) ($) Revenue ($) Galiwinku Community Galiwinku 58,060 Inc. Gapuwiyak Community Gapuwiyak 18,609 Inc. Marngarr Community Gunyangara 84,529 Government Council (Marngarr) Milingimbi Community Milingimbi 51,949 Inc. Ramingining Community Ramingining 16,288 Council Inc. Yirrkala Dhanbul Yirrkala 40,484 Community Association Inc. Umbakumba Community Umbakumba 95,084 Council Inc. Angurugu Community Angurugu, 159,279 Government Council Milyarburra Total East Arnhem 385,278 624,016 524,282 1,533,576 Shire Council

Nauiyu Nambiyu Daly River 139,075 Community Government Council Nganmarriyanga Palumpa 18,039 Community Inc. Peppimenarti Community Peppimenarti 16,438 Council Inc. Thamarrurr Community Wadeye 68,745 Government Council Daguragu Community Daguragu/ 78,000 Government Council Kalkarindji Timber Creek Community Timber Creek 29,724 Government Council Walangeri Ngumpinku Yarralin 69,000 Community Government Council Pine Creek Community Pine Creek 30,236 Government Council Total Victoria-Daly 259,520 420,332 449,257 1,129,109 Shire Council

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 31 Schedules

Assessed Revenue 2006-2007 continued Total Administration Rates Levied Domestic Garbage Poll Tax Parking Interest Revenue Council Assessed Location ($) Waste ($) Other ($) ($) Restrd. ($) ($) Revenue ($) Katherine Town Council Katherine 1,038,501 637,310 Binjari 413,574 44,904 Total Katherine 1,038,501 413,574 44,904 637,310 2,134,289 Town Council

Borroloola Community Borroloola 9,620 Government Council Numbulwar Numburindi Numbulwar 32,958 Community Government Council Nyirranggulung Barunga, 320,406 Mardrulk Ngadberre Wugularr, Regional Council Manyallaluk Yugul Mangi Community Ngukurr 47,346 Government Council Mataranka Community Mataranka 6,341 Government Council Jilkminggan Community Jilkminggan 33,177 Government Council Total Roper Gulf 262,251 424,755 449,848 1,136,854 Shire Council

Tennant Creek Town Tennant Creek 71,061 50,400 92,457 Council Elliott District Community Elliott 7,682 Government Council Aherrenge Association Ampilatwatja 2,273 Inc. Ali Curung Council Inc. Ali Curung 70,721 Alpurrurulam Community Alpurrurulam 9,439 Government Council Urapuntja Council Arlparra 44,000 Aboriginal Corp. (Utopia) Total Barkly Shire Council 71,061 314,324 50,400 324,176 226,572 986,534

Alice Springs Town Council Alice Springs 10,675,579 1,125,465 902,987 965,193 13,669,224

32 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Schedules

Assessed Revenue 2006-2007 continued Total Administration Rates Levied Domestic Garbage Poll Tax Parking Interest Revenue Council Assessed Location ($) Waste ($) Other ($) ($) Restrd. ($) ($) Revenue ($) Nyirripi Community Inc. Nyirripi 64,178 Lajamanu Community Lajamanu 99,000 Government Council Yuendumu Community Yuendumu 89,248 Government Council Anmatjere Community Ti-Tree 63,210 Government Council Arltarlpilta Community Atitjere 41,505 Government Council (Harts Range) Yuelamu Community Inc. Yuelamu 36,000 Total Central Desert 187,389 303,505 393,141 884,036 Shire Council

Areyonga Community Inc. Areyonga 29,605 Ikuntji Community Haasts Bluff Council Inc. Imanpa Community Inc. Imanpa 5,000 Kaltukatjara Community Docker River 71,526 Council Aboriginal Corp. Ntaria Council Inc. Hermannsburg 19,649 Papunya Community Papunya 16,663 Council Inc. Walungurru Council Kintore 45,784 Aboriginal Corporation Wallace Rockhole Wallace 1,450 Community Government Rockhole Council Amoonguna Amoonguna 66,232 Community Inc. Aputula Housing Finke 15,226 Association Inc. Ltyentye Apurte Santa Teresa 45,571 Community Government Council Tapatjatjaka Community Titjikala 15,966 Government Council Watiyawanu Community Mount Liebig 8,927 Government Council Total MacDonnell 276,470 447,785 341,599 1,065,853 Shire Council

Totals $67,461,000 $8,660,342 $4,798,075 $3,222,989 $4,157,651 $8,747,630 $97,047,687

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 33 Schedules

SCHEDULE 8 Summary Standardised Revenue

NT Average 2007-2008 Roads to 2007-2008 2007-2008 Budget Total Standardised Councils Revenue ($) Recovery 50% ($) Library Grant ($) Roads Grant ($) Term ($) Revenue ($) Darwin 50,978,659 304,662 1,204,208 1,500,094 20,970,645 74,958,268

Tiwi Islands 559,244 132,358 52,454 718,510 694,003 2,156,569

Palmerston 8,706,550 100,330 455,492 542,151 7,501,807 17,306,330

Belyuen 50,661 5,429 26,730 55,672 138,492

Coomalie 248,470 68,189 41,964 308,837 349,532 1,016,992

Cox Peninsula 62,429 9,485 41,068 92,998 205,980

Litchfield 12,768,035 345,959 1,839,997 5,060,462 20,014,453

Maningrida 42,719 212,749 Jabiru 17,275 79,123 84,665 Kunbarllanjnja 96,186 473,600 Minjilang 14,965 73,683 Warruwi 17,262 84,992 Total West Arnhem 1,134,166 188,406 79,123 929,689 1,796,372 4,127,756

Galiwinku 36,022 41,964 177,364 Gapuwiyak 36,545 152,458 Marngarr 3,665 23,811 Milingimbi 11,882 41,964 58,505 Ramingining 22,648 31,473 111,511 Yirrkala 11,948 60,801 Umbakumba 25,379 31,472 98,734 Milyakburra 4,091 20,141 Angurugu 27,871 31,473 140,016 Total East Arnhem 1,533,576 180,050 178,346 843,341 2,588,434 5,323,747

Nauiyu Nambiyu 31,704 163,601 Nganmarriyanga 16,261 77,174 Peppimenarti 31,753 31,472 156,345 Thamarrurr 44,537 62,945 327,981 Daguragu 15,274 77,993 Timber Creek 42,107 214,858 Walangeri Ngumpinku 10,317 60,272 Pine Creek 24,480 31,472 114,484 Total Victoria-Daly 1,129,109 216,431 125,889 1,192,708 1,743,547 4,407,684

Katherine 104,989 207,826 487,005 Binjari 2,828 13,923 Total Katherine 2,134,289 107,817 207,826 500,928 2,778,541 5,729,401

34 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Schedules

Summary Standardised Revenue continued NT Average 2007-2008 Roads to 2007-2008 2007-2008 Budget Total Standardised Councils Revenue ($) Recovery 50% ($) Library Grant ($) Roads Grant ($) Term ($) Revenue ($) Borroloola 13,215 31,473 70,324 Numbulwar 29,341 128,268 Nyirranggulung 68,453 31,472 337,050 Yugul Mangi 37,153 41,964 192,030 Mataranka 5,589 31,472 26,448 Jilkminggan 5,272 0 25,955 Total Roper Gulf 1,136,854 159,021 136,381 780,075 1,761,894 3,974,225

Tennant Creek 36,434 116,571 149,018 Elliott 9,382 31,472 46,192 Aherrenge 6,001 29,547 Ali Curung 12,182 60,482 Alpurrurulam 8,806 43,356 Urapuntja 12,225 60,195 Total Barkly 986,534 85,029 148,043 388,790 2,111,742 3,720,138

Alice Springs 13,669,224 157,719 531,219 786,233 7,561,275 22,705,670

Nyirripi 24,674 108,633 Lajamanu 19,026 31,473 99,206 Yuendumu 57,913 285,152 Anmatjere 23,304 41,964 118,601 Arltarlpilta 4,545 9,006 Yuelamu 16,450 77,136 Total Central Desert 884,036 145,911 73,437 697,734 1,258,947 3,060,065

Areyonga 6,580 44,996 Ikuntji 7,880 38,797 Imanpa 4,996 24,596 Kaltukatjara 20,066 89,685 Ntaria 15,848 78,029 Papunya 11,352 55,895 Walungurru 20,410 129,953 Wallace Rockhole 3,483 17,150 Amoonguna 2,376 11,699 Aputula 6,574 32,367 Ltyentye Apurte 17,908 31,472 88,175 Tapatjatjaka 4,605 22,562 Watiyawanu 6,038 28,527 Total MacDonnell 1,065,853 128,112 31,472 662,431 1,857,422 3,745,290

Totals $97,047,689 $2,334,906 $3,265,854 $11,759,316 $58,183,293 $172,591,058

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 35 Schedules

SCHEDULE 9 Standardised Expenditure 189,757 212,806 880,438 7,591,158 2,791,952 12,181,982 8,447,859 14,361,252 21,483,912 7,508,098 10,867,742 10,056,163 11,029,986 15,469,825 39,077,844 10,440,280 $172,591,054 Expenditure Standardised Standardised Social Social 9,361 7,566 34,640 145,884 420,397 451,340 458,168 891,115 573,488 316,006 599,613 601,463 919,191 432,174 633,956 Protection 1,092,454 $7,586,816 1,422 5,260 1,149 22,154 63,842 68,541 69,578 87,091 47,989 91,059 91,340 65,631 96,274 165,903 135,327 139,590 Education $1,152,151 18,639 31,135 Religion 329,189 118,127 5,098,188 1,823,770 1,871,174 1,205,143 2,352,756 1,548,215 1,070,792 1,601,472 1,661,010 3,033,484 1,144,320 1,688,303 Recreation, Recreation, Culture and Culture $24,595,715 6,675 5,395 Health 24,699 778,944 104,018 299,752 321,815 326,684 635,385 408,909 225,319 427,538 428,856 655,404 308,150 452,024 $5,409,567 45,366 36,668 706,976 167,869 Amenities 5,294,207 2,037,309 2,187,264 2,220,357 4,318,488 2,779,214 1,531,416 2,905,822 2,914,786 4,454,548 2,094,384 3,072,251 Community Community Housing and Housing $36,766,925 16,891 28,216 210,567 106,051 545,037 785,357 529,010 843,037 534,576 640,724 381,977 563,560 Protection 6,362,704 2,276,124 1,535,395 2,294,167 $17,653,395 Environmental Environmental Affairs 24,566 41,037 433,881 155,694 Economic Economic 6,719,566 2,403,784 2,466,264 1,588,414 3,101,003 2,040,594 1,411,336 2,110,789 2,189,261 3,998,223 1,508,248 2,225,234 $32,417,895 3,240 2,619 50,495 11,990 378,134 145,513 156,223 158,587 308,444 198,503 109,380 207,546 208,186 318,162 149,589 219,433 and Safety $2,626,042 Public Order Order Public Public Public 63,597 59,020 Services General General 788,787 256,108 4,890,762 3,123,965 1,875,889 2,941,951 1,891,140 2,035,883 1,961,865 2,132,117 5,671,143 1,423,626 2,078,952 13,187,744 $44,382,548 Tiwi Islands Tiwi Council of Municipality Darwin Municipality of Municipality Palmerston Litchfield Belyuen Coomalie Peninsula Cox Arnhem West Arnhem East - Daly River Victoria Municipality of Municipality Katherine Katherine East Barkly Alice of Municipality Springs Central Desert Central MacDonnell Total

36 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Schedules

SCHEDULE 10 National Distribution and Shares of Financial Assistance Grants 2008-2009

General Purpose Share Local Road Component Share Total Share State/ Territory ($) (%) ($) (%) ($) (%)

NSW 424,015,792 32.71% 166,893,787 29.01% 590,909,579 31.57% Vic 321,123,654 24.77% 118,592,696 20.62% 439,716,350 23.49% Qld 258,822,624 19.97% 107,778,005 18.74% 366,600,629 19.59% WA 130,430,617 10.06% 87,954,310 15.29% 218,384,927 11.67% SA 97,445,421 7.52% 31,613,069 5.50% 129,058,490 6.90% Tas 30,347,259 2.34% 30,483,401 5.30% 60,830,660 3.25% NT 13,317,249 1.03% 13,474,784 2.34% 26,792,033 1.43% ACT 20,862,195 1.61% 18,445,165 3.21% 39,307,360 2.10% Total $1,296,364,811 100.00% $575,235,217 100.00% $1,871,600,028 100%

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 37 Schedules

SCHEDULE 11 Visits to Local Governing Bodies

Council 2007-2008 2006-2007 2005-2006 2004-2005 Council 2007-2008 2006-2007 2005-2006 2004-2005 Aherrenge Milingimbi 04-Apr-05 Ali Curung 22-Feb-06 Milyakburra 19-Aug-05 Alice Springs 30-Jun-08 Minjilang Alpurrurulam Nauiyu 19-May-05 Nambiyu Amoonguna Nganmar- 18-May-05 Angurugu 18-Aug-05 riyanga Anmatjere 01-Nov-04 Ntaria 19-Nov-05 Aputula 15-Nov-05 Numbulwar 05-Apr-05 Areyonga 17-Nov-05 Nyirripi 02-Nov-04 Arltarlpilta Nyirranggu- 02-Mar-06 Belyuen 24-Nov-04 lung Binjari 23-Nov-04 Palmerston 03-Mar-06 Borroloola Papunya 17-May-06 Coomalie 25-Nov-04 Peppimenarti 19-May-05 Cox Peninsula 24-Nov-04 Pine Creek 23-Nov-04 Daguragu 06-July-04 Ramingining 19-Aug-05 Darwin 27-Jun-08 Tapatjatatjaka 15-Nov-05 Elliott Tennant Creek 21-Feb-06 Galiwinku 04-Apr-05 Thamarrurr 18-May-05 Gapuwiyak 05-Apr-05 Timber Creek 07-Jul-04 Ikuntji 17-May-06 Tiwi Islands 24-Aug-06 Imanpa 16-Nov-06 Umbakumba 18-Aug-05 Jabiru 22-Aug-06 Urapuntja Jilkminggan 22-Nov-04 Walangeri 07-Jul-04 Kaltukatjara 16-May-06 Ngumpinku Katherine 01-Mar-06 05-Jul-04 Wallace 23-Feb-06 Rockhole Kunbarllan- 23-Aug-06 jnja Walungurru 16-May-06 Lajamanu 06-Jul-04 Warruwi Litchfield 03-Mar-06 Watiyawanu 18-May-06 Ltyente Yirrkala 17-Aug-05 Apurte Yuelamu 03-Nov-05 Maningrida 23-Aug-06 Yuendumu 03-Nov-05 Marngarr 17-Aug-05 Yugul Mangi 06-Apr-05 Mataranka 22-Nov-04

38 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Schedules

Public Hearings to Councils

Council 2007-2008 2006-2007 2005-2006 2004-2005 Alice Springs 30-Jun-08 14-Nov-05 07-Mar-05 Darwin 27-Jun-08 14-Feb-05 Jabiru 22-Aug-06 Katherine 06-Jul-04 Litchfield Palmerston Tennant Creek

Schedule 12 Local Governing Bodies that Failed to Lodge their 2006-2007 Annual Financial Statements by the Date Specified

Aherrenge Community Council Incorporated Nganmarriyanga Community Incorporated Ali Curung Council Association Incorporated Ntaria Council (Hermannsburg) Incorporated Alpurrurulam Community Government Council Numbulwar Numburindi Community Government Council Amoonguna Community Incorporated Nyirranggulung Mardrulk Ngadberre Regional Council Angurugu Community Government Council Palmerston City Council Anmatjere Community Government Council Papunya Community Council Incorporated Areyonga Community Incorporated Ramingining Community Council Incorporated Arltarlpilta Community Government Council Tapatjatjaka Community Government Council Belyuen Community Government Council Tennant Creek Town Council Elliott District Community Government Council Thamarrurr Community Government Council Galiwinku Community Incorporated Timber Creek Community Government Council Gapuwiyak Community Incorporated Tiwi Islands Local Government Ikuntji Community Council Incorporated Umbakumba Community Council Incorporated Imanpa Community Incorporated Walangeri Ngumpinku Community Government Council Jilkminggan Community Government Council Wallace Rockhole Community Government Council Kaltukatjara Community Council Aboriginal Corporation Walungurru Council Incorporated Kunbarllanjnja Community Government Council Warruwi Community Council Ltyentye Apurte Community Government Council Yirrkala Dhanbul Community Association Incorporated Minjilang Community Incorporated Yuelamu Community Incorporated Nauiyu Nambiyu Community Government Council Yuendumu Community Government Council

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 39 Appendices Appendices

Appendix A National Principles For The Allocation Of General Purpose And Local Road Grants

A. The national principle relating to the allocation of B. The National Principle relating to the allocation of general purpose grants payable under section 6 of the the amounts payable under Section 12 of the Act (the Local Government (Financial Assistance) Act 1995 (the Act) identified road component of the financial assistance among local governing bodies are as follows: grants) among local governing bodies is as follows: 1. Horizontal Equalisation 1. Identified Road Component General purpose grants will be allocated to all local The identified road component of the Financial Assistance governing bodies, as far as practicable, on a full horizontal Grants should be allocated to local governing bodies as far equalisation basis as defined by the Act. This is a basis that as practicable on the basis of the relative needs of each local ensures that each local governing body in the state/territory governing body for roads expenditure and to preserve its is able to function, by reasonable effort, at a standard not road assets. In assessing road needs, relevant considerations lower than the average standard of other local governing include length, type and usage of roads in each local bodies in the state. It takes account of differences in the governing area. 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.

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 41 Appendices

APPENDIX B Methodology and Formula Factors

Methodology The Commission determined that the cost adjustors of location, dispersion and Aboriginality are to be used following an Introduction extensive review and data collection process to ensure the The Northern Territory Grants Commission’s methodology adjustors can be explained and supported by meaningful and conforms with the requirement for horizontal equalisation as relevant information. These new cost adjustors will be used for set out in section 6 (3) of the Australian Government’s Local the 2008-2009 allocations in the forth year of the phase–in Government (Financial Assistance) Act 1995. period for the new methodology. The Commission, in assessing relative need for allocating In previous years the methodology included 50 per cent of the general purpose funding, uses the balanced budget approach Northern Territory Operational Subsidy grants. During 2008 the to horizontal equalisation based on the formula: Commission unanimously decided to cease using the Northern assessed expenditure need - assessed revenue Territory Operational Subsidy grants as part of the other grant capacity = assessed equalisation requirement. support principle. The Commission considered the Northern Territory Operational Subsidy is a special measure to overcome The methodology calculates standards by applying cost adjustors disadvantage and consequently should not be assessed in a way and weightings to assess each local government’s revenue that would reduce the financial assistance grants entitlement. raising capacity and expenditure need. The assessment is the Commission’s measure of each local government’s ability to Population function at the average standard in accordance with the national In previous years the Commission has, where possible, used principles. Details regarding the national principles the latest ABS estimated residential population figures. Where are at Appendix A. no Estimated Residential Population figures are available, the Changes to the Methodology Commission uses figures obtained from local government by annual survey. In 2005 the Commission corrected a number of inconsistencies in its methodology that had previously been identified by For the 2008-2009 allocations the Commission resolved to the Commonwealth Grants Commission. These corrections use the latest ABS usual resident population figures and then included the manner in which the cost adjustors were applied, adjusted the figures for estimated residency to align with the the introduction of a budget term and the elimination of an population total advised to Canberra from Northern Territory economy of scale factor. Treasury. It is this total population figure that the Northern Territory’s funding is based on. As well as the foregoing revisions, an improved data gathering process first introduced in 2004 for the collection of 2002-2003 Revenue Raising Capacity financial data enabled the Commission to use real financial As the ownership of the land, on which many communities information in the assessments. are located, is vested in Land Trusts established pursuant to the During the 2005-2006 year the Commission also looked at Commonwealth Aboriginal Lands Rights (Northern Territory) the expenditure categories and cost adjustors in use in order Act 1976, it is not, for all intents and purposes, feasible to use a to conclude the review of the methodology. It was resolved land valuation system solely as the means for assessing revenue that the expenditure categories be expanded to the nine ABS raising capacity. categories and that the cost adjustors be rearranged to apply The advent of actual accurate financial data enabled the to those categories. Commission to dispense with the use of average annual In 2006 the Minister for Local Government announced New incomes, which had been used since 1992, for establishing Local Government in the Northern Territory. As a result, the an Northern Territory average revenue unit. Instead, a number Commission issued a discussion paper to invite comments from of revenue categories were introduced including rates where interested local governing bodies on the options available to applicable, as well as domestic waste, poll tax and interest. the Commission in developing a methodology that adapts to In addition, to accord with the national principles, other the changed structure. The paper highlighted the need for the grant support to local governing bodies by way of the roads to Commission to re-visit and amend the cost adjustors that are recovery, library and local roads grants are considered in the used in the methodology. methodology. In the case of recipients of the roads to recovery grants, 50 per cent of the grant is included. Recipients of library grants and local roads grants have the total amount of the grant included.

42 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Appendices

The Commission considers that given the unique circumstances Averaging of Equalisation Requirement within the Northern Territory, this overall revenue raising Commencing with the 2005-2006 allocations, the Commission capacity approach provides a reasonable indication of a adopted an averaging approach in order to finalise the yearly council’s revenue raising capacity. assessed equalisation requirement of local governments. This Expenditure Needs approach requires that grants be based on a three-year average of the preliminary assessed equalisation requirement. The assessment of standard expenditure is based on the Territory average per capita expenditure within the expenditure To arrive at the average, the assessments of need for the year categories to which cost adjustors reflecting the assessed under consideration plus the assessments for each of the disadvantage of each local government is applied. preceding four years are used. The highest and the lowest of the five assessments are then dropped out of the average. As a result of the availability of actual accurate financial data, the Commission, beginning with the 2005-2006 assessment, Minimum Grants was able to use actual expenditure within categories rather than For most local governments, the assessed expenditure needs an a hypothetical spread across categories to establish the total exceed the assessed revenue capacity, meaning that there is standardised expenditure for each local governing body. an assessed need. In two cases, assessed revenue capacity is In assessing the previous allocations up to and including the greater than assessed expenditure need, meaning that there is assessment for the 2005-2006 financial year, there were six no assessed need. However, as the Commonwealth legislation expenditure categories taken into account by the Commission. requires that local governments can not get less than 30 per As a result of the methodology review, the Commission cent of what they would have been allocated had the funding resolved that the nine ABS expenditure categories be applied. been distributed solely on the basis of population, two local Consequently, from the 2006-2007 assessment and onwards, governments still receive a grant or what is referred to as the the nine categories are used. minimum grant. 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 of these influence the cost of service delivery. The cost adjustors used by the Commission for 2008-2009 are shown at Schedule 2. As a result of the methodology review, the Commission, effective from the 2005-2006 assessments, changed the manner in which the cost adjustors were applied. Expenditure assessments have as an outcome total standardised expenditure equal to total actual expenditure, or ‘natural weighting’. Natural weighting is achieved in the Commission’s methodology by rescaling cost adjustors around one to ensure that total calculated standardised expenditure does not exceed the total actual expenditure.

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 43 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, General Rates, Poll Tax, General Rates Other, Special Rates Parking, Special Rates Other, Fines and Interest Domestic Waste = Per capita Garbage Other = Actual General Rates = Average rate Poll Tax = Per capita Interest = Actual State Income by Revenue Category 2006-2007 = Actual State Local Government Gross Income Actual State Local Government Gross Income 2006-2007 = $97,047,687 Other Grant Support = Roads to Recovery Grant 2007-2008 50%, Library Grant 2007-2008 + Roads Grant 2007-2008 Budget Term Population x per capita amount $172,591,054 = Total Local Government Revenue 2007-2008

44 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Appendices

2. Expenditure Components f. Health ($5,409,567) Total Local Government expenditure of $172,591,054 is Community population/Northern Territory population x apportioned over each expenditure component. Health expenditure x (location + dispersion + Aboriginality) a. General Public Services ($44,382,548) g. Recreation, Culture and Religion ($24,595,715) Community population/Northern Territory population Community population/Northern Territory population x Northern Territory General Public Services expenditure x Recreation, Culture and Religion expenditure x Aboriginality x (location + dispersion) b. Public Order and Safety ($2,626,042) h. Education ($1,152,151) Community population/Northern Territory population Community population/Northern Territory population x Public Order and Safety expenditure x Education expenditure x (location + dispersion + Aboriginality) x (location + dispersion + Aboriginality) c. Economic Affairs ($32,417,895) i. Social Protection ($7,586,816) Community population/Northern Territory population Community population/Northern Territory population x Economic Affairs expenditure x (location + dispersion) x Social Protection expenditure x (location + dispersion + Aboriginality) d. Environmental Protection ($17,653,395) 3. Local Road Grant Funding Community population/Northern Territory population x Environmental Protection expenditure In order to determine the local road grant, the Commission applies a weighting to each council by road e. Housing and Community Amenities ($36,766,925) length and surface type. These weightings are: Community population/Northern Territory population 10 x kerbed and sealed road + 8 x sealed road + x Housing and Community Amenities expenditure 4 x gravel road + 1 x formed road + 0.4 x unformed road x (location + dispersion + Aboriginality) + 2 x cycle paths.

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)

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 45 Appendices

APPENDIX C Revoked Local Governing Bodies

Under section 19 of the Local Government Grants Commission Under section 19 of the Local Government Grants Commission Act and with reference to section 43 of the Interpretations Act and with reference to section 43 of the Interpretations Act, the declaration of each of the following bodies as a local Act, the declaration of each of the following bodies as a local governing body, with effect on 30 June 2008, have been governing body, with effect on 30 June 2008, have been revoked. (See Northern Territory Government Gazette No. S30, revoked. (See Northern Territory Government Gazette No. G23, 30 June 2008) 11 June 2008)

Schedule Kaltukatjara Community Council Inc.

Aherrenge Community Council Inc. Urapuntja Council Aboriginal Corporation Ali Curung Council Inc. Walungurru Community Council (Aboriginal Corporation) Amoonguna Community Inc. Note:- The bodies mentioned in the above two notices were Aputula Housing Association Inc. declared to be local governing bodies by a notice dated 26th July 2000 published in Gazette No. G31 Dated 9 August 2000. Areyonga Community Inc. Galiwinku Community Inc. Gapuwiyak Community Inc. Ikuntji Community Council Inc. Imanpa Community Inc. Jabiru Town Council Kaltukatjara Community Council Inc. Local Government Association of the Northern Territory Maningrida Community Council Inc. Milingimbi Community Inc. Minjilang Community Council Inc. Nganmarriyanga Community Inc. Ntaria Council (Hermannsberg) Inc. Nyirripi Community Inc. Papunya Community Council Inc. Peppimenarti Community Council Association Inc. Ramingining Community Inc. Umbakumba Community Council Inc. Urapuntja Council Aboriginal Corporation Walungurru Community Council (Aboriginal Corporation) Warruwi Community Inc. Yirrkala Dhanbul Community Association Inc. Yuelamu Community Inc.

46 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Appendices

Appendix D Re-Structuring Orders to Establish New Councils

Re-structuring orders under section 28A(1) of the Local Government Act to establish new councils. (See Northern Territory Gazette No. S31 17 October 2007)

Council Constituent Councils Barkly Shire Council Aherrenge Association Incorporated, Ali Curung Council Association Incorporated, Alpurrurulam Community Government Council, Elliott District Community Government Council, Tennant Creek Town Council. Central Desert Shire Council Anmatjere Community Government Council, Arltarlpilta Community Government Council, Lajamanu Community Government Council, Nyirripi Community Council Incorporated, Yuelamu Community Incorporated, Yuendumu Willowra Community Government Council. East Arnhem Shire Council Angurugu Community Government Council, Galiwinku Community Incorporated, Gapuwiyak Community Incorporated, Marngarr Community Government Council, Milingimbi Community Incorporated, Ramingining Community Council Incorporated, Umbakumba Community Council Incorporated, Yirrkala Dhanbul Community Association Incorporated. MacDonnell Shire Council Amoonguna Community Incorporated, Aputula Housing Association Incorporated, Areyonga Community Incorporated, Ikuntji Community Council Incorporated, Imanpa Development Association Incorporated, Ltyentye Apurte Community Government Council, Ntaria Council (Hermannsburg) Incorporated, Papunya Community Council Incorporated, Tapatjatjaka Community Government Council, Wallace Rock Hole Community Government Council, Watiyawanu Community Government Council. Roper Gulf Shire Council Borroloola Community Government Council, Jilkminggan Community Government Council, Mataranka Community Government Council, Numbulwar Numburindi Community Government Council, Nyirranggulung Mardrulk Community Government Council, Yugul Mangi Community Government Council. Tiwi Islands Shire Council Tiwi Islands Local Government Victoria Daly Shire Council Daguragu Community Government Council, Nauiyu Nambiyu Community Government Council, Nganmarriyanga Community Incorporated, Peppimenarti Association Incorporated, Pine Creek Community Government Council, Thamarrurr Community Government Council, Timber Creek Community Government Council, Walangeri Ngumpinku Community Government Council. West Arnhem Shire Council Jabiru Town Council, Kunbarllanjnja Community Government Council, Maningrida Council Incorporated, Minjilang Community Incorporated, Warruwi Community Incorporated.

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 47 Appendices

APPENDIX E 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) Small (S) Up to 30,000 UDS Part of an urban centre of more than Medium (M) 30,000-70,000 UDM 1,000 000 or population density more Large (L) 70,001-120,000 UDL than 600/sq km Very Large (V) more than 120,000 UDV OR Population density more than Regional Towns/City (R ) Small (S) Up to 30,000 URS 30 persons per sq km Part of an urban centre with population Medium (M) 30,000-70,000 URM less than 1,000,000 and predominantly Large (L) 70,001-120,000 URL urban in nature Very Large (V) more than 120,000 URV OR 90% or more of LGA population Fringe (F) Small (S) Up to 30,000 UFS is urban A Developing LGA on the margin of a Medium (M) 30,000-70,000 UFM developed or regional urban centre Large (L) 70,001-120,000 UFL Very Large (V) more than 120,000 UFV RURAL (R) An LGA with population less Significant Growth (SG) Not applicable RSG than 20,000 Average annual population growth more than 3%, population more than 5,000 and not remote AND Population density less than Agricultural (A) Small (S) Up to 2,000 RAS 30 persons per sq km Medium (M) 2,001-5,000 RAM Large (L) 5,001-10,000 RAL Very Large (V) 10,001-20,000 RAV AND Less than 90% of LGA population Remote (T) Extra Small (X) Up to 400 RTX is urban Small (S) 401-1,000 RTS Medium (M) 1,001-3,000 RTM Large (L) 3,001-20,000 RTL

48 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Appendices

APPENDIX F Northern Territory Local Governments by Classification

Council Name ACLG Classification Barkly Shire Council RTL Belyuen Shire RTX Central Desert Shire Council RTL Coomalie Shire RTM East Arnhem Shire Council RTL Litchfield City Council RAV MacDonnell Shire Council RTL Municipality of Alice Springs URS Municipality of Darwin UCC Municipality of Katherine URS Municipality of Palmerston UFS Roper Gulf Shire Council RTL Tiwi Islands Shire Council RTM Victoria - Daly Shire Council RTL Wagait Shire RTX West Arnhem Shire Council RTL

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 49 Appendices

APPENDIX G Northern Territory Map of Shire Areas

Tiwi Islands Shire Darwin Municipality Wagait Shire Belyuen Shire West Arnhem Shire Palmerston Municipality East Arnhem Shire Litchfield Municipality Coomalie Shire

Katherine Municipality

Roper Gulf Shire

Victoria - Daly Shire

Barkly Shire

Central Desert Shire

MacDonnell Shire Municipality of Alice Springs

50 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 Appendices

APPENDIX H Auditor-General’s Report to the Minister for Local Government Northern Territory Grants Commission For The Year Ended 30 June 2008

I have audited the accompanying financial report of the internal control relevant to the entity’s preparation and fair Northern Territory Grants Commission, which comprises the presentation of the financial report in order to design audit income statement, balance sheet and accompanying notes to procedures that are appropriate in the circumstances, but not the financial statements for the year ended 30 June 2008. for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes The Responsibility of the Accountable Officer for the evaluating the appropriateness of accounting policies used Financial Report and the reasonableness of accounting estimates made by The Accountable Officer of the Northern Territory Grants the Accountable Officer of the Northern Territory Grants Commission is responsible for fair presentation of the financial Commission as well as evaluating the overall presentation of report in accordance with Australian Accounting Standards the financial report. (including the Australian Accounting Interpretations). I believe that the audit evidence I have obtained is sufficient This responsibility includes designing, implementing and and appropriate to provide a basis for my audit opinion. maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material Auditor’s Opinion misstatement, whether due to fraud or error; selecting and In my opinion, the financial report presents fairly, in all applying appropriate accounting policies; and making estimates respect, the financial position of the Northern Territory that are reasonable in the circumstances. Grants Commission as of 30 June 2008, and of its financial Audit’s Responsibility performance for the year then ended in accordance with Australian Accounting Standards (including the Australian My responsibility is to express an opinion on the financial report Accounting Interpretations). based on my audit. I conducted my audit in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit F McGuiness evidence about the amounts and disclosures in the financial Auditor-General for the Northern Territory report. The procedures selected depend on the auditor’s Darwin, Northern Territory judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or 16 September 2008 error. In making those risk assessments, the auditor considers

Annual Report 2007-08 NORTHERN TERRITORY GRANTS COMMISSION 51 Appendices

Balance Sheet as at 30 June 2008 Notes to and forming part of the financial statements for the year ended 30 June 2008. 2008 ($) 2007 ($) 1. The Commission was established under the provision of the Assets Nil Nil Local Government Grants Commission Act, which came Liabilities Nil Nil into operation on 1 July 1986, in order to comply with the requirements of the then Local Government (Financial Assistance) Act 1986. Income Statement for the year ended 30 June 2008 2. The Commission’s activity is to make recommendations to Income Nil Nil the Minister for Local Government, in respect of the amounts Expenditure Nil Nil 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. Notes to and forming part of the financial statements Funds for this purpose were appropriated to the Department are attached. of Local Government, Housing and Sport. Allocations of Statement by Accountable officer Federal Assistance Grants and Road Grants recommended for distribution were: In my opinion: (i) The accompanying Income Statement presents fairly Recommendation Recommendation Northern Territory Grants Commission’s transactions for the for distribution in for distribution in reporting year ended 30 June 2008. 2007-2008 2008-2009 The financial statements are based on proper accounts Federal Assistance Grants $13,455,463 $12,653,793 and records and are in agreement with the accounts and Road Grants $13,615,647 $12,713,412 have been properly drawn up so as to present fairly the Total $27,071,110 $25,367,205 transactions of the Northern Territory Grants Commission for the reporting year ended 30 June 2008 and its financial position at that date. 3. The costs of operation of the Commission are met from the (ii) The accompanying balance sheet presents fairly the funds appropriated to the Department of Local Government, Northern Territory Grants Commission’s state of affairs at the Housing and Sport were $77,956.10 (2006-2007: end of the reporting year; and $152,215). An allowance has been made for the salary cost of administrative support provided by the Department (iii) The financial statements are in accordance with applicable of Local Government, Housing and Sport. accounting standards. 4. The Commission did not acquire any assets during the period covered by the financial statements.

Abdus Sattar Accountable Officer 10 September 2008

52 NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2007-08 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