Notice of Meeting

Notice is hereby given that the LGA Annual General Meeting will be held on

Thursday 31 October 2019 at 11.00am

In the William Magarey Room, Oval War Memorial Drive, North Adelaide

Matt Pinnegar Chief Executive Officer

1 October 2019

ECM 688750 LGA Annual General Meeting Agenda 31 October 2019

Agenda

Item Page

1. Open & Welcome 2. Apologies 3. Notice & Arrangements 4. President’s Address 5. Minutes of Previous Meeting 5.1 Minutes of the 2019 Ordinary General Meeting 4 5.2 Resolutions and Actions from Previous Meetings 17 6. LGA Business 6.1 LGA Annual Report 2018-2019 35 6.2 Financial Statements 2018-2019 36 6.3 Annual Reports of LGA Committees 86 6.4 LGASA Mutual Annual Report 2018-2019 114 6.5 LGA Procurement Annual Report 2018-2019 115 6.6 LGA 2019 Value Proposition and Pricing Methodology 116 6.7 LGA Advocacy Update 179 6.8 LGASA Commercial Update 218 6.9 Local Government Research & Development Scheme 220 6.10 Local Government Financial Indicators 2019 231 6.11 Amendments to LGA Constitution and Ancillary Documents 242 6.12 LGA Board and Committee Member Allowances and Expenses 309 6.13 LGA Audit and Risk Committee - Remuneration 315 7. Recommendation Reports from the SAROC Committee 7.1 Crown Lands as Economic Drivers 317 8. Recommendation Reports from the GAROC Committee 8.1 Corflute Election Signs (Campbelltown) 319 8.2 State of Climate Emergency (Gawler) 324 8.3 Electric Vehicles (Gawler) 329

ECM 688750 LGA Annual General Meeting Agenda 31 October 2019

8. Recommendation Reports from the GAROC Committee (cont.) 8.4 Fairer Allocation of Open Space Funding (Campbelltown) 333 8.5 Contributory Items (Gawler) 339 8.6 Review of the Impacts of Infill Development 344 8.7 Reform in the aged care sector (Gawler) 348

9. Late Reports (to be distributed separately) Nil. 10. Next Meeting The LGA Ordinary General Meeting will be held on Friday 3 April 2020 at Adelaide Entertainment Centre, 98 Port Road, Hindmarsh. 11. Close

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5.1 Minutes of the Ordinary General Meeting held on 12 April 2019

Minutes of Previous Meeting Meeting: Annual General Meeting 31 October 2019 ECM: 688749 Attachment: 675555

Recommendation That the Annual General Meeting confirms the minutes of the Ordinary General Meeting held on 12 April 2019 as a true and accurate record of the proceedings held.

Discussion An Ordinary General Meeting of the membership was held on 12 April 2019. The draft minutes are attached for confirmation as to their accuracy.

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Draft Minutes of the LGA Ordinary General Meeting held on Friday 12 April 2019 at 11.00am at the Adelaide Entertainment Centre, 98 Port Road, Hindmarsh

1. Open & Welcome The President opened the meeting at 11:13am and welcomed members. Present: President Mayor Sam Telfer Chief Executive Officer Matt Pinnegar Executive Director Public Affairs Lisa Teburea

Office Manager (Minutes) Jacqui Kelleher

Director Corporate Services (Scrutineer) Andrew Wroniak

Senior Finance Officer (Scrutineer) Ben Swan

City of Adelaide Council Regional Council of Goyder Council District Council of Grant Holdfast Bay City Council The District Council of Karoonda East Murray Kingston District Council District Council of Lower Campbelltown City Council District Council of Loxton Waikerie

City of Charles Sturt (until 12.13 pm) Clare & Gilbert Valleys Council District Council of Cleve Mount Barker District Council District Council of Copper Coast District Council of Elliston District Council of Mount Remarkable The Rural City of Murray Bridge

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Naracoorte Lucindale Council District Council of Tumby Bay City of Norwood Payneham & St Peters Wakefield Regional Council District Council of Orroroo/Carrieton City of

Port Pirie Regional Council City of (from 11.39 am) District Council of Yankalilla District Council of Streaky Bay Council

2. Apologies Berri Barmera Council Enfield District Council of Ceduna City Council District Council of Coober Pedy District Council of Franklin Harbour Municipal Council of Roxby Downs

District Council of Kimba (until 11.25am) Southern Mallee District Council District Council of Peterborough

3. Notice & Arrangements The Executive Director Public Affairs outlined the notices and arrangements for the meeting.

4. President’s Address The President provided a verbal report. Note: Copy attached to minutes.

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5. Minutes of Previous Meeting 5.1 Minutes of the Annual General Meeting held on 26 October 2018 Moved Northern Areas Seconded Naracoorte Lucindale that the Ordinary General Meeting confirms the minutes of the Annual General Meeting held on 26 October 2018 as a true and accurate record of the proceedings held. Carried 5.2 Resolutions and Actions from Previous Meetings Moved Gawler Seconded Wudinna that the Ordinary General Meeting notes progress with resolutions resulting from the Annual General Meeting of 26 October 2018 and outstanding resolutions from earlier general meetings. Carried

6. LGA Business 6.1 Local Government Reform Moved Salisbury Seconded Unley that the Ordinary General Meeting: 1. notes the report; and 2. commits to working with the Parliament of South Australia to deliver sensible and effective reforms that will drive downward pressure on council rates, improve the financial sustainability of councils, and deliver lasting benefits to South Australian communities. Carried 6.2 LGA Advocacy Update Moved Gawler Seconded Wakefield Regional that the Ordinary General Meeting notes the report on the LGA’s advocacy activities. Carried 6.3 LGASA Commercial Moved Wattle Range Seconded Naracoorte Lucindale that the Ordinary General Meeting notes the report on LGASA Commercial activities. Carried 6.4 LGA Procurement Transformation Update Moved Mount Barker Seconded Light Regional that the Ordinary General Meeting notes the report on the transformation of LGA Procurement services to the sector. Carried

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6.5 LGASA Mutual Update Moved Campbelltown Seconded Gawler that the Ordinary General Meeting notes the report. Carried

7. Recommendation Reports from the SAROC Committee 7.1 State of Climate Change Emergency (Mount Barker) Moved Mount Barker Seconded Gawler that the Ordinary General Meeting requests the LGA to investigate opportunities for giving a higher priority to lobbying state and federal governments on climate change, as well as facilitating appropriate responses from member councils, due to the escalating environmental, economic, social and risk related issues faced by the local government sector. Carried 11.22am Kimba left the meeting. 7.2 Local Government Leadership in Climate Risk Management (Southern & Hills LGA) Moved Alexandrina Seconded Adelaide Hills that the Ordinary General Meeting agrees to enhance Local Government leadership in climate risk management, by: 1. advocating that the South Australian Government (including the Department of Energy, Transport and Infrastructure and the Department for Environment and Water) establishes and manages a centrally coordinated climate hazard mapping framework to inform decision- making in collaboration with Councils; 2. advocating to ensure Local Government priorities on climate risk management are considered in the State Government’s new cross- agency Climate Change Strategy; and 3. investigating opportunities for the LGASA to increase its support to councils to accurately assess the climate risk exposure of Council plans and projects. Carried 11.39am Whyalla arrived at the meeting. 7.3 Jetties (Tumby Bay) Moved Tumby Bay Seconded Yorke Peninsula that the Ordinary General Meeting requests that the LGA immediately begin negotiations with the current State Government to draft a lease or other agreement with local government collectively (for those councils that currently hold an existing lease agreement)

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to safeguard the future of jetties in South Australia without creating a financial burden on ratepayers, especially in rural and regional areas. Carried 7.4 Lack of Medical Services to Regional Areas (Eyre Peninsula LGA) Moved Streaky Bay Seconded Wudinna that the Ordinary General Meeting requests the LGA to lobby the State and Commonwealth governments for the provision of improved health services in regional and rural Australia. Carried 7.5 Funding for Regional Road Safety (Alexandrina) Moved Alexandrina Seconded Gawler that the Ordinary General Meeting asks the LGA to call on State Government to: 1. actively advocate to the Federal Government of the day to continue providing supplementary local roads funding for South Australia; and 2. allocate increased funds for the maintenance and upgrade of safe and high quality regional roads and establish a dedicated Regional Roads and Infrastructure Fund. Carried 7.6 Regional Economic Growth and Development (Wattle Range) Moved Wattle Range Seconded Grant that the Ordinary General Meeting asks that the LGA continue to lobby the State Government to develop and implement initiatives that will assist with the growth and development of regional South Australia. Carried 7.7 Little Corella Management (Alexandrina) Moved Alexandrina Seconded Salisbury that the Ordinary General Meeting asks the LGA to continue to advocate to State Government for: 1. the urgent adoption (in consultation with the local government sector) of a statewide strategy for the management of Little Corellas; and 2. a commitment to fund implementation of the strategy, which must include financial assistance to local governments for: (a) the development of integrated local management plans; and (b) the implementation of medium and long term management options at a local scale. Carried

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8. Recommendation Reports from the GAROC Committee 8.1 Inclusion of Wine Bottles in the Container Deposit Legislation (Unley) Moved Unley Seconded West Torrens that the Ordinary General Meeting requests the LGA to investigate whether there is sufficient support across Local Government to request the State Government amend the Container Deposit Legislation (incorporated into the Environment Protection Act 1993) to include wine bottles, and to achieve consistency with the treatment of other glass bottles in the waste stream, an increase in the recycling of bottles, and a reduction in the contamination of other recycled waste caused by broken glass. Carried 8.2 Social Infrastructure that promotes liveable and healthy communities (Adelaide) Moved Adelaide Seconded Gawler that the Ordinary General Meeting requests that the LGA: 1. supports and encourages councils to improve planning for community, sporting and cultural facilities and services/programs (social infrastructure) including through research, innovation, collaboration, skills and capacity development; 2. liaises with the South Australian Government to ensure councils are engaged and informed regarding social infrastructure planning associated with urban development and planning processes, with reference to implementation of the Planning, Development and Infrastructure Act 2016 (SA) (PDI Act) and the 30-year Plan for Greater Adelaide, and 3. requests that the South Australian government investigates opportunities to promote a more consistent and place-based approach to social infrastructure planning in the state, including development of a contemporary social infrastructure guideline/design standard for SA. Amendment Moved Norwood Payneham St Peters Seconded Salisbury that the LGA OGM requests the LGA: 1. liaises with the South Australian Government to ensure councils are engaged and informed regarding social infrastructure planning associated with urban development and planning processes, with reference to implementation of the Planning, Development and Infrastructure Act 2016 (SA) (PDI Act) and the 30-year Plan for Greater Adelaide, and 2. requests that the South Australian government investigates opportunities to promote a more consistent and place-based approach to social infrastructure planning in the state, including development of a contemporary social infrastructure guideline/design standard for SA.

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The Amendment was put and carried The Amendment become the motion was put and carried 8.3 Movement and Transport Planning (Adelaide) Moved Adelaide Seconded Barossa that the Ordinary General Meeting requests that the Local Government Association: 1. Establishes a Local Government Movement and Transport Planning Network with the intent to:  keep informed of current and future trends in movement and transport strategies, with relevance to metropolitan Adelaide and regions across the state;  identify priority movement and transport projects, with a key focus on mobility sharing, cycling, walking and public transport;  identify strategic, capital and operational funding opportunities at all levels of government as well as seek partnerships to deliver strategies and projects;  ensure movement and transport strategies are aligned and cohesive across council areas; and  discuss opportunities to partner on projects, cross-promote and share information, ideas, and learnings. 2. Membership could include all councils who elect to sign up to the group, the LGA, as well as representatives from the State Government (e.g. DPTI and ODASA) 3. The scope could include discussion of a metropolitan Adelaide without boundaries, and assisting councils and other key stakeholders (e.g. RAA, Bike SA, BISA, AILA, Engineers Australia, Property Council etc.) to create, influence and implement:  Major projects  Climate change adaptation  Green infrastructure provision  Customer centricity  Business cases and the process for Infrastructure Australia (IA)  Consistent approaches to design and infrastructure  Consistent approaches to transport mode integration Carried 12.13pm Marion left the meeting.

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8.4 Hardship Policy for council rates (Playford) Moved Playford Seconded Salisbury that the Ordinary General Meeting requests the LGA work with its member councils to prepare guidelines to assist councils in developing Rates Hardship Policies. Carried

9. Recommendation Reports from the LGA Board of Directors 9.1 Engineering Principles for Development (Campbelltown) Moved Campbelltown Seconded Salisbury that the Ordinary General Meeting requests the LGA to investigate whether there is sufficient evidence across local government to change the Standards used to determine space allocation for parking on site and on street, including turning circles, given the wider use of SUV vehicles that require more space than standard vehicles. Carried

10. Late Reports Nil.

11. Next Meeting The Annual General meeting will be held on Thursday 31 October 2019 at 11.00am at Adelaide Oval, War Memorial Drive, North Adelaide.

12. Close The meeting was declared closed at 12.19 pm.

Minutes confirmed

……………………………………. Chairperson

Date ………………………………

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2019 LGA President’s Ordinary General Meeting Report It is my pleasure to provide the President’s Report to the 2019 LGA Ordinary General Meeting. I would like to particularly welcome and acknowledge the new council members who are here today, following the council elections last November. Increasing the number – and diversity – of nominees was a key priority for the LGA and councils in the lead up to these elections, and I’m pleased to report we were successful on both counts. A total of 1,375 nominations were received, which was the most we’ve had since 1995, when South Australia had 115 councils. We also saw a 20% increase in nominations from women, which flowed through to a record number of female council members and Mayors being elected. These results were driven by an outstanding marketing campaign, which was well supported by councils across the State. Over the past six months the LGA has focused on a wide range of issues on behalf of its members. As we covered extensively during yesterday’s Showcase, increased costs around waste and recycling are putting pressure on council budgets, and generating concern in our communities. China’s National Sword Policy is now costing our sector at least $8.8 million extra per year, and probably much more considering recent developments. We’re continuing to advocate for more support from the State Government, but we understand that we also have a part to play in establishing a circular economy in South Australia. The LGA has established a pilot program looking at procurement targets for councils using recycled materials, and as we heard during yesterday’s sessions, councils are also implementing their own programs. The LGA is working with the EPA, Green Industries SA, and the waste and recycling industry, understanding that any effective solutions to the challenges we’re facing will require a partnership approach. We’ve also worked closely with members and the Government over the last six months to both advocate for and assist councils with the transition to the State’s new planning system. This has included extensive consultation with councils, and numerous submissions to the Government seeking improvements to many aspects of the system. The State’s new planning system will roll out in regional areas from November, and it’s important that we’re ready to hit the ground running.

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The LGA will continue to work with all members over the next six months to provide advice and assistance as required, and negotiate the best outcomes possible for communities. Emergency management has also been a recent focus, and over the past nine months the LGA has worked with more than 550 council staff members to undertake emergency management “health checks”. These reviews have covered all 68 councils, and helped us better understand how the sector is prepared for emergencies. What we learned is that local government makes its biggest contributions well before disasters strike - through everyday asset management, planning, public health, community development and coastal management. We’ve now unlocked a further $2.6 million of funding from the Natural Disaster Resilience Program and the LGA Mutual Liability Scheme for Stage 2, which will be used to further strengthen our planning for emergency management. Internally, the LGA is moving forward with a new constitution and governance structure. Our new LGA Board is working well, and SAROC and GAROC have released their first Strategic Plans and Annual Business Plans for consultation with members. The CEO Advisory Group has been established and the Board looks forward to working with the 8 CEOs appointed to continue building the services and value delivered by the LGA. The Federal Election is fast approaching, and our focus is on ensuring SA councils receive their fair share of funding. Along with ALGA, and our members, the LGA has strongly advocated for the extension of supplementary road funding for South Australia. We were thrilled to see this funding extended in last week’s Federal Budget, and thank the Government for supporting us with a two year $40 million commitment. However, a longer term solution is needed, and the Federal Election is an opportunity for us to make our case to all Parties. South Australia has 11% of Australia’s local roads, and 7% of its population, but receives only 5.5% of identified local roads funding. We’ve received top-up funding of around $20 million almost every year since 2003, and while we’ve always appreciated this support, we need a permanent fix to provide certainty and equality for SA councils. We also want to see the total value of Financial Assistance Grants increased. The real value of these grants has declined from 1% of Commonwealth taxation in 1996 to around half a percent today. Councils nationally collect only 4% of the total taxes paid in Australia, and our communities need fair funding from the Commonwealth to enable councils to provide the services and facilities they want and need. Looking ahead, our biggest priority for the coming year is meaningful local government reform.

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The Government are in the midst of an ambitious local government reform program, which is expected to culminate in a Bill being introduced to Parliament early next year. The LGA and its members have been pushing for sensible, evidence-based reform for a number of years, and we welcome this opportunity to partner with the Government and Parliament on this process. We recognise the need for change, and have identified a range of alternative reforms that will support councils to deliver better outcomes. Many of these ideas were included in a proposal we gave to all parties ahead of the 2018 State Election. Others have come from motions agreed to by members at our General Meetings. Improving the code of conduct for council members is one of the changes we’ve identified as a priority. The current code doesn’t provide councils with the tools they need to deal with serious behavioral issues, and has also been used by both elected members and the public to make vexatious complaints. The introduction of a comprehensive, online benchmarking system for local government is another priority. Benchmarking would not only support increased transparency for ratepayers, but also help councils identify opportunities for continual improvement. We’ve also proposed improvements to council elections, auditing processes, mandatory training requirements, caretaker policies, section 270 processes, and the rules around conflict of interest and informal gatherings. Above all, we are looking to make changes that will help drive downward pressure on council rates. Keeping rates increases low is a shared responsibility between state and local government. Many of us are now in the midst of our 2019-20 Budget preparations, and understand the impact external factors can have on our planning. When we are weighed down by excessive red tape, or burdened by escalating state government levies, it’s hard to provide the services that our communities need, while keeping rate increases to a minimum. Similarly, when the amount we are legislatively allowed to charge for certain services doesn’t cover their true cost, this has an impact on our entire community. It’s time for us to have an open and honest conversation with our communities, the Government, and Parliament, about the legislative and regulatory framework that will help us to succeed. The LGA has produced a discussion paper for councils on local government reform, and based on feedback we receive from members we will provide a submission to the Government outlining opportunities to cut red tape, improve transparency, and drive efficiencies.

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I encourage every single one of you to take an active role in this reform process. We look forward to strong engagement with our members over the next 18 months, and hearing your ideas and feedback on the reform options that are put on the table. These opportunities to be a genuine partner in real and lasting change don’t come along too often, and it’s up to all of us to make the most of it. Thank you.

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5.2 Resolutions and Actions from Previous Meetings

Minutes of Previous Meeting Meeting Annual General Meeting 31 October 2019 ECM: 684095

Recommendation That the Annual General Meeting notes progress with resolutions resulting from the Ordinary General Meeting of 12 April 2019 and outstanding resolutions from earlier general meetings.

Discussion The attachment shows progress of resolutions from previous general meetings of the LGA.

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= Completed/No further action required Resolutions from the Ordinary General Meeting – 12 April 2019 Action Taken / Progress

6.1 Local Government Reform (LT 672891) On 5 August 2019, the Office of Local Government (OLG) released a discussion paper with 72 proposals for regulatory change. A week later, the LGA released its that the Ordinary General Meeting: own discussion paper to help facilitate discussion in the sector. The LGA’s paper 1. notes the report; and identifies that there are a number of government reform proposals that are 2. commits to working with the Parliament of South Australia to deliver consistent with the sector’s position, and also highlights that there are some ideas sensible and effective reforms that will drive downward pressure on that are not likely to be supported by councils. council rates, improve the financial sustainability of councils, and deliver The LGA has facilitated a series of workshops across the state to assist councils lasting benefits to South Australian communities. in preparing their positions on local government reform. The OLG were invited to present at each of these workshops, and we appreciate that they remained available to answer questions and were able to hear the deliberations of the sector. From these discussions we believe the State Government now has a better understanding of the cost burdens of the current and proposed regulatory regimes. The LGA has also engaged with the LG Financial Management Group, the Governance and Professional Officers Network, individual councils and council officers during this consultation process. In September 2019, Minister Knoll publicly praised the sector for the positive and mature way it had engaged with the reform process. Decisions of councils are directing the content of the LGA’s formal submission and its ongoing advocacy to the OLG, the Minister and other parliamentarians. The South Australian Productivity Commission (the Commission) has been asked to examine the trends in local government costs and efficiency and the drivers behind these trends. The Inquiry has been conducted in two stages with Stage 1 commencing with the release of a Methodology Paper by the Commission.

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= Completed/No further action required The LGA developed two submissions in response to the Methodology Paper. The first sector-wide submission focussed on where the sector has come from and the challenges faced whilst the second submission built on the first and included tangible examples of external pressures on councils. The second submission also built the case for our sensible plan for local government reform and expanded on how the measures proposed will improve efficiency, transparency and accountability. The Commission released their draft report on 30 August 2019. The report showed that when compared to each other, SA councils are achieving a high level of technical efficiency, but it also identified some areas of improvement for both the State Government and councils. A further round of consultation with stakeholders is being undertaken, following which the Commission will consider all feedback; finalise its views; and submit its final report and recommendations to the Premier by 22 November 2019.

7.1 State of Climate Change Emergency (Mount Barker) (VB 670626) The LGA Secretariat is currently determining a process for engaging with councils to identify climate priorities and potential activities. This process will be that the Ordinary General Meeting requests the LGA to investigate commenced in 2019 and a report will be prepared for the LGA Board of Directors opportunities for giving a higher priority to lobbying state and federal with recommendations about future LGA activities that can be achieved with governments on climate change, as well as facilitating appropriate responses available resources. from member councils, due to the escalating environmental, economic, social and risk related issues faced by the local government sector.

7.2 Local Government Leadership in Climate Risk Management The LGA Secretariat: (Southern & Hills LGA) (VB 671681) 1. Has received feedback from both departments that this work is underway and that the Ordinary General Meeting agrees to enhance Local Government that the LGA will be kept informed. leadership in climate risk management, by: 2. Liaised with the Department of Environment and Water regarding the State 1. advocating that the South Australian Government (including the Government’s new cross agency Climate Change Strategy and is participating in Department of Energy, Transport and Infrastructure and the Department the emergency management and planning workshops/ engagement. for Environment and Water) establishes and manages a centrally

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= Completed/No further action required coordinated climate hazard mapping framework to inform decision making 3. Is currently determining a process for engaging with councils to identify in collaboration with Councils; priorities and potential activities. 2. advocating to ensure Local Government priorities on climate risk management are considered in the State Government’s new crossagency Climate Change Strategy; and 3. investigating opportunities for the LGASA to increase its support to councils to accurately assess the climate risk exposure of Council plans and projects.

7.3 Jetties (Tumby Bay) (KR 670924) The LGA Secretariat: that the Ordinary General Meeting requests that the LGA immediately begin 1. formed an LGA Jetties Steering Group comprising a range of councils, negotiations with the current State Government to draft a lease or other which has met twice agreement with local government collectively (for those councils that currently 2. wrote to Minister Knoll about the importance of jetties to local government hold an existing lease agreement) to safeguard the future of jetties in South and the communities they represent Australia without creating a financial burden on ratepayers, especially in rural 3. arranged a meeting with Minister Knoll, the LGA President and the and regional areas. Steering Group, which stressed the importance of including local government in the development of the State Government’s Jetties

Strategic Plan 4. is preparing a Jetties Issues Paper to provide to the Minister focussing on the interests of local government in jetties. 7.4 Lack of Medical Services to Regional Areas (Eyre Peninsula LGA) The SAROC Committee has allocated a budget of $25,000 in its 2019-20 Annual (LB 671925) Business Plan to progress this issue, namely, Lobby the Commonwealth and The SAROC that the Ordinary General Meeting requests the LGA to lobby the State and State governments for the provision of improved health services. plan includes the following actions: Commonwealth governments for the provision of improved health services in regional and rural Australia. • invite the Minister of Health and the CEO of Country Health to attend future a SAROC meeting;

• work with regional LGAs and councils to develop rural/regional workforce policy and plan; and

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= Completed/No further action required • undertake research to identify sustainable health models for small communities The LGA Secretariat: 1. Is currently developing an Advocacy Strategy for SAROC endorsement in November 2019 2. Has prepared a submission to SA Health on the Consultation Draft Rural Medical Workforce Plan in September. This plan is part of a wider Regional Health Workforce Strategy to which the State Government has committed $20 million over four years. The secretariat undertook research, consulted with members and considered evidence provided by the Eyre Peninsula LGA in preparing the submission.

7.5 Funding for Regional Road Safety (Alexandrina) (KR 671927) The LGA’s 2019-20 State Budget Submission (March 2019) highlighted the lack of road safety funding and built on an ALGA campaign. This activity will be that the Ordinary General Meeting asks the LGA to call on State Government supported by the implementation of the to: Local Government Guide to a Road Safety Strategy and Action Plan that was endorsed by the LGA Board at its meeting on 1. actively advocate to the Federal Government of the day to continue 28 August 2019 and includes advocacy items for the LGA to undertake, including providing supplementary local roads funding for South Australia; and seeking increased funding to local government for road infrastructure. 2. allocate increased funds for the maintenance and upgrade of safe and high quality regional roads and establish a dedicated Regional Roads and Infrastructure Fund.

7.6 Regional Economic Growth and Development (Wattle Range) (SH The SAROC Committee has adopted economic development as one of the four 672043) key priorities in its inaugural four-year Strategic Plan. A main focus of this work will be advocating for economic development opportunities in regional areas. that the Ordinary General Meeting asks that the LGA continue to lobby the State Government to develop and implement initiatives that will assist with the The LGA worked with councils and SAROC to develop a submission to the growth and development of regional South Australia. Regional Development Strategy Discussion Paper. The LGA also secured funding through the Local Government Research and Development Scheme to produce a scope for a Local Government Population

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= Completed/No further action required Carrying Capacity Project. This project will serve as a bridging mechanism between the already completed LGR&DS Fund project “Evidence to inform local government advocacy for a strategic population policy” completed in December 2018 and a proposed Local Government Population Carrying Capacity Project. The evidence-based document will be used to work with the State Government on a South Australian population policy, bringing a greater degree of certainty to government planning at all levels and private enterprise decision making.

7.7 Little Corella Management (Alexandrina) (KR 671926) The LGA Secretariat has been included in consultation on the Little Corellas Strategy being developed by the Department of Environment and Water, which that the Ordinary General Meeting asks the LGA to continue to advocate to has acknowledged the LGA as a key stakeholder in the process. During State Government for: consultation, the LGA Secretariat has called for the urgent development of the 1. the urgent adoption (in consultation with the local government sector) of a Strategy and the inclusion of funding for local government to implement the statewide strategy for the management of Little Corellas; and actions of the Strategy. The Strategy was released for consultation on 23 2. a commitment to fund implementation of the strategy, which must include September 2019 and the LGA will consult with member councils and prepare a financial assistance to local governments for: submission on the Strategy. a) the development of integrated local management plans; and On 3 September 2019, Mayor Erica Vickery, the Chairperson of SAROC, wrote to Minister Spiers: b) the implementation of medium and long term management options at a local scale. 1. expressing the support of SAROC for the Inquiry Report of the Natural Resources Committee’s Parliamentary Inquiry into Overabundant and Pest Species; 2. congratulating the Minister on progressing development of the Little Corellas Strategy; and 3. inviting the Minister to a meeting of SAROC. 8.1 Inclusion of Wine Bottles in the Container Deposit Legislation The LGA remains actively involved in the State Government review of the (Unley) (SPS 670515) Container Deposit Scheme (CDS) including through LGA membership on the Container Deposit Stakeholder Reference Group. The LGA continues to advocate that the Ordinary General Meeting requests the LGA to investigate whether for the expansion of the CDS, in particular, through the inclusion of wine bottles. there is sufficient support across Local Government to request the State

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= Completed/No further action required Government amend the Container Deposit Legislation (incorporated into the The LGA also secured funding through the Local Government Research and Environment Protection Act 1993) to include wine bottles, and to achieve Development Scheme for a research project to investigate what proportion of the consistency with the treatment of other glass bottles in the waste stream, an cost to councils of providing recycling services can be attributed to the presence of increase in the recycling of bottles, and a reduction in the contamination of glass in the yellow bin. This project is in the planning stage and will commence other recycled waste caused by broken glass. with the release of a request for tender in coming weeks.

8.2 Social Infrastructure that promotes liveable and healthy The LGA has made numerous submissions to the State Planning Commission that communities (Adelaide) (VB 671566) reinforce the importance of social infrastructure planning processes. Amended as: In its submission to the Infrastructure SA discussion paper, the LGA highlighted to importance of considering social development and community wellbeing in that the LGA OGM requests the LGA: infrastructure planning processes. 1. liaises with the South Australian Government to ensure councils are Further engagement with the will occur on further actions that can engaged and informed regarding social infrastructure planning associated be undertaken by the LGA and councils to progress the issues outlined in the with urban development and planning processes, with reference to resolution. implementation of the Planning, Development and Infrastructure Act 2016 (SA) (PDI Act) and the 30-year Plan for Greater Adelaide, and 2. requests that the South Australian government investigates opportunities to promote a more consistent and place-based approach to social infrastructure planning in the state, including development of a contemporary social infrastructure guideline/design standard for SA.

8.3 Movement and Transport Planning (Adelaide) (LB 671567) The LGA Secretariat is currently developing a draft Terms of Reference for this network and will shortly invite councils and other stakeholders to join. It is that the Ordinary General Meeting requests that the Local Government envisaged that the LGA Secretariat will chair this network and will provide in-kind Association: support to host meetings at Local Government House, to utilise webinar facilities 1. Establishes a Local Government Movement and Transport Planning and to establish a landing page on the LGA members’ website as an information Network with the intent to: hub. Providing any further support to this network would be a shared responsibility between the LGA and the participating councils.

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= Completed/No further action required

• keep informed of current and future trends in movement and transport strategies, with relevance to metropolitan Adelaide and regions across the state;

• identify priority movement and transport projects, with a key focus on mobility sharing, cycling, walking and public transport;

• identify strategic, capital and operational funding opportunities at all levels of government as well as seek partnerships to deliver strategies and projects;

• ensure movement and transport strategies are aligned and cohesive across council areas; and

• discuss opportunities to partner on projects, cross-promote and share information, ideas, and learnings 2. Membership could include all councils who elect to sign up to the group, the LGA, as well as representatives from the State Government (e.g. DPTI and ODASA) 3. The scope could include discussion of a metropolitan Adelaide without boundaries, and assisting councils and other key stakeholders (e.g. RAA, Bike SA, BISA, AILA, Engineers Australia, Property Council etc.) to create, influence and implement: • Major projects • Climate change adaptation • Green infrastructure provision • Customer centricity • Business cases and the process for Infrastructure Australia (IA) • Consistent approaches to design and infrastructure • Consistent approaches to transport mode integration

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= Completed/No further action required

8.4 Hardship Policy for council rates (Playford) (RM 671569) The LGA Secretariat has commenced working with the Rating and Valuation Working Group of the SA Local Government Financial Managers Group on the that the Ordinary General Meeting requests the LGA work with its member development of Hardship Policy guidelines. This work is being supported by a councils to prepare guidelines to assist councils in developing Rates Hardship funding grant from the Local Government Research and Development Scheme. Policies.

9.1 Engineering Principles for Development (Campbelltown) (VB – The LGA Secretariat has consulted with the sector on this matter where views 670190) were mixed as to whether further investigation were required. that the Ordinary General Meeting requests the LGA to investigate whether The LGA will engage with DPTI on this issue through a Car Parking Study Project- there is sufficient evidence across local government to change the Standards Parking Spaces for Urban Places’, which aims to update guidelines developed by used to determine space allocation for parking on site and on street, including the LGA in 2013. turning circles, given the wider use of SUV vehicles that require more space The LGA would also recommend to Councils that they include this matter on any than standard vehicles. submission made on the Planning and Design Code.

Resolutions from the Annual General Meeting – 26 October 2018 Action Taken / Progress

8.2 Affordable Housing ‘Deliberative Development’ (Prospect) (VB A discussion paper was released in February 2019 seeking feedback from 665555) councils on a number of affordable housing issues, including a specific focus on gaining the views of members on how local government can support a deliberative that the Annual General Meeting requests the LGA investigate whether there is development housing model. There was a limited response from members to this sufficient evidence across Local Government for a model of co-located consultation process. affordable housing (new housing models including ‘Deliberative development’) which maintains existing streetscapes, including planning implications and It was determined that the LGA would keep a watching brief on this issue due to funding opportunities. state government activities related to the development of a housing and homelessness strategy.

The LGA is now engaging with the state government on the development of the strategy and has prepared a submission on the strategic intent developed for the strategy.

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= Completed/No further action required

8.3 Northern Gateway Maintenance (Adelaide Plains) (EHS 665597) LGA President Sam Telfer wrote to the Minister for Environment and Water in relation to this issue on 22 January 2019. The LGA received a response from that the Annual General Meeting requests the LGA to lobby the State Minister Speirs on 4 April 2019, highlighting the role of DPTI in maintaining Government that the major northern gateway to Adelaide (Port Wakefield highways and encouraging councils to continue to report illegal dumping to both Highway) be cleaned up and maintained, and monies be resourced from waste DPT and the EPA. The LGA forwarded Minister Speirs response to Adelaide levies. Plains Council on 16 April 2019.

8.4 State Wide Asbestos Strategy (Adelaide Plains) (BC 665598) A letter was sent to Minister for Environment and Water on 11 January 2019 and copies sent to the Treasurer, the Minister for Health and Wellbeing and the that the Annual General Meeting requests the LGA to liaise with the State Minister for Transport, Planning and Local Government. The letter requested that Government to commence a statewide asbestos identification, collection and state government initiate discussions regarding the development of a state-wide rehabilitation program with particular focus on coastal areas known for the asbestos strategy that provides clarity on roles and responsibilities, as well as illegal dumping of asbestos materials. options moving forward to address both the cost of illegally dumped asbestos and community health and safety in the domestic setting. The Minister’s response received on 6 March outlines a range of initiatives put in place by the State Government to address the issue of asbestos management. This includes investigations that have been commenced by the EPA in collaboration with Safework SA to better understand the generation, movement and disposal (including illegal dumping) of asbestos waste. These investigations will inform future State Government actions. Local government input into this work via the LGA has been welcomed and the LGA will liaise with the EPA to facilitate council input. In July, the LGA Secretariat met with officers from the Federal Asbestos Safety and Eradication Agency and attended a presentation on Australia’s National strategic plan for asbestos awareness and management 2019-2023. SA’s activities under this plan were discussed and partnerships with other state agencies has commenced to address this issue.

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= Completed/No further action required

8.5 Commitment to Managing Recyclable Waste (Prospect) (EHS To enable the local government sector to commit to fully participating in a circular 665558) economy for waste management, the LGA is currently undertaking a Circular Procurement Pilot Project. that the Annual General Meeting requests the LGA to investigate whether there is sufficient evidence across Local Government for the establishment of a The Pilot Project was launched in September 2019. As part of the Pilot Project, sector wide commitment that by 2025, local government in South Australia will nine participating councils have entered into an MOU to (1) prioritise the purchase fully participate in a circular economy in respect to waste management and will of recycled-content products and materials through the procurement process; (2) support waste processing which creates products for use by local government. track the recycled-content purchased by weight; and (3) publicly report on the amount (tonnes) purchased under the MOU. Most councils have also elected to adopt a target in relation to purchasing recycled plastic products and materials. The LGA is also developing tools and guiding documents to help councils meet their commitments under the MOU. As proposed through the Waste Pathways Workshop held in June 2018, the outcomes and learnings from this pilot project could be used to inform a sector-wide strategy to enable local government to fully participate in a circular economy. The LGA has prepared a Waste Action Plan that outlines the specific actions that can be undertaken by Federal, State and Local Government to support a circular economy.

8.6 Increasing Procurement of Recyclable Waste (Prospect) (EHS To enable the local government sector to increase purchasing of recycled 665559) materials the LGA is currently undertaking a Circular Procurement Pilot Project. As part of the Pilot Project, nine participating councils have entered into an MOU that the Annual General Meeting requests the LGA to investigate whether there to (1) prioritise the purchase of recycled-content products and materials through is sufficient evidence across Local Government to: the procurement process; (2) track the recycled-content purchased by weight; and a. significantly increase local governments’ procurement of products made (3) publicly report on the amount (tonnes) purchased under the MOU. Most partially or wholly from recycled materials through a review of councils have also elected to adopt a target in relation to purchasing recycled procurement policies and specifications and development of templates for plastic products and materials. use across the sector; The LGA is also developing tools and guiding documents to help councils meet their commitments under the MOU. As proposed through the Waste Pathways

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= Completed/No further action required Workshop held in June 2018, the outcomes and learnings from this pilot project b. establish a sector wide Memorandum of Understanding for endorsement could be used to inform a sector-wide circular procurement strategy. by Councils to commit to purchasing products made partially or wholly from recycled products as a demonstration of commitment and as a Separately, the 2019 LGA Showcase meeting incorporated two streams – a foundation for supporting the establishment and development of new generalist stream and a dedicated waste and recycling stream. This format was industries within the State; and well-received by attendees. c. focus the 2019 LGA Showcase meeting to be held in April on waste management and recycling. 8.9 Increasing the maximum penalty that can be fixed for a breach of a This is included in LGA’s reform proposals for the legislative change and will by-law (section 246 of the Local Government Act 1999) continue to be pursued as part of the State Governments Local Government (Onkaparinga) (AS 665557) Reform Program. that the Annual General Meeting requests the LGA to advocate for an amendment to section 246(3)(g) of the Local Government Act 1999 to increase the maximum penalty that can be fixed for any breach of a by-law and by extension the maximum expiation fee that can be fixed under section 246(5) of the Act.

8.10 Fee for Lodgement of a Section 270 Complaint (Mitcham) (AS This is included in LGA’s reform proposals for the legislative change and will 665701) continue to be pursued as part of the State Governments Local Government Reform Program. that the Annual General Meeting requests the LGA to request that the Government consider placement of a small “lodgement fee” on all section 270 complaints made to various councils. Should a complaint be upheld then the fee would be refunded in full.

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= Completed/No further action required Resolutions from the Ordinary General Meeting – 13 April 2018 Action Taken / Progress

8.3 New Properties Application for Reticulation (AFR) (Marion) (SPS The LGA has written to the Minister of Planning regarding this matter (no 659552) response received to date) and the Commonwealth Department of Communications and Art. That the Ordinary General Meeting requests the LGA to advocate for connection to telecommunication infrastructure being mandated in relevant The LGA will seek opportunities through the development of the Planning and legislation by writing to: Development Code to have telecommunications infrastructure considered during the land division process. 1. the South Australian Minister for Planning seeking that the Planning, Development and Infrastructure Act 2016 be amended to include telecommunications as an essential service for the purpose of issuing land division consents; and 2. the Department of Communications to seek more information on the awareness campaign being undertaken by the Department and communicate the information to councils.

8.5 Local Heritage Listing Policy and Procedure (Adelaide) (SPS The LGA has received funding through the Local Government Research and 659576) Development Scheme to undertake this project, however recent recommendations of the Environment Resources and Development Committee, Inquiry into Heritage That the Ordinary General Meeting requests that the LGA calls upon and (April 2019) have identified a strategic statewide reform of heritage processes. works with all South Australian Councils to develop a consistent policy and The LGA is awaiting the Government’s response to the Inquiry recommendations procedure to identify and protect their historic building stock dating from the before proceeding with this project. 19th and 20th century, to achieve more consistent local heritage and comprehensive historic character protection across all council areas in the . State, in order to better meet community expectations.

8.8 Developer Contributed Assets (Charles Sturt) (SPS 659579) The LGA has sought advice from DPTI about the process and timing of Design Standards. This is yet to be confirmed. That the Ordinary General Meeting requests that the LGA to: The Local Government Research & Development Scheme (LGR&DS) has part- 1. seek advice from the Department of Planning, Transport and funded the production of 'Infrastructure Guidelines' to provide guidance for civil Infrastructure (DPTI) on the timing of the development of the Design infrastructure works undertaken by Councils and developers, to assist in

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= Completed/No further action required Standards and seek an assurance from DPTI that the Design Standards standardising development submissions and expedite Councils' engineering will be developed in consultation with local government; and approvals. 2. commission production of a template agreement for a council to enter with The LGA has, on a number of occasions, requested that DPTI use these a developer, under which the council would agree to accept an asset guidelines as the basis for the Design Standards to be prepared under the constructed by the developer, providing that the asset was constructed to Planning, Development and Infrastructure Act. a relevant standard, and providing a mechanism to deal with a situation Council adoption and usage of the Infrastructure Guidelines will reduce the need where the standard of such an asset was in dispute. for a template agreement. To the extent that a template agreement might be regarded as advantageous, this would require legal services and advice. The cost of such services has not been anticipated in the current LGA work plan. As the LGA does not currently have the resources to prioritise this work, a Council might choose to apply to the LGR&DS for funding to develop such a template.

Resolutions from the Annual General Meeting Action Taken / Progress - 16 November 2017

8.1 Community Land Management Plans (Charles Sturt) (EHS 655308) The LGA has been working with Local Government Risk Services on two projects to respond to the Coast Park decision: a revised Public Consultation Policy - That the Annual General Meeting requests the LGA to undertake a Model Policy document and revised Community Land Management Plan (CLMP) comprehensive review of their Community Land – Classification and guidelines. Management Plans Guidelines to ensure that these guidelines take into consideration the decision handed down by Justice Malcolm Blue in the In 2018, the LGA commenced work on updating its model public consultation Supreme Court. policy to take account of the Coast Park decision. Whilst undertaking this work, we became aware of other developments that have highlighted the ambiguity in section 50.

Separately, the State Government’s Local Government Reform Program commenced earlier this year, and the Discussion Paper released this month demonstrates the Government’s willingness to consider reforms to public consultation requirements.

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= Completed/No further action required

Considering this, the LGA has determined not to release a model public consultation policy at this point and will focus our efforts on achieving effective legislative change.

The LGA had prioritised the project related to public consultation. Now that this project is no longer proceeding, the LGA will re-commence work on the revised Community Land Management Plan guidelines.

8.2 Material Conflicts of Interest (West Torrens) (AS 655373) Significant reform of the conflict of interest provisions is being considered as part of the State Governments Local Government Reform Program and this issue will That the Annual General Meeting requests the LGA to seek the amendment of be addressed as part of those reform proposals. section 74 of the Local Government Act 1999 (LG Act) to enable a member of council who has declared a material conflict of interest in a matter to be discussed at a meeting of council, to be able to elect to remain in the meeting, participate in the debate and vote on the matter if the member is able to demonstrate that it is in the public interest for the member to do so particularly when nominating for community membership or conferences and seminars specifically related to local government business I.e. Local Government Association Annual General Meeting, Australian Local Government National Congress etc.

8.5 Essential Services Property Reinstatement Policy (Prospect) (LB The GAROC Committee has allocated a budget of $28,000 to this project in 2019- 655433) 20 to progress this issue. The LGA has completed the initial stage of the project, which included a desktop review of existing council reinstatement specifications, a that the Annual General Meeting requests the Local Government Association review of relevant legislation, State Government processes, and consultation with to liaise with essential service providers to establish an agreed policy on councils and essential service providers via surveys. reinstating public infrastructure to the satisfaction of councils after completion of works and remediation improvements. At their interest, the LGA Secretariat also met with the Small Business Commissioner to understand economic implications of poor reinstatement practices.

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= Completed/No further action required LGA has established a working group with member councils, who will inform development of a consistent set of specifications and a framework for working with essential service providers when issues arise. 8.6 Establishing Local Government common data formats (Prospect) UHY Haines Norton were engaged to source a number of existing databases and (AJ/MP 655434) data to compile a report based on council classifications. that the Annual General Meeting requests the LGA to seek interest from the Sector-wide benchmarking is a key proposal in the LGA’s local government reform Local Government sector in: agenda and has strong support across councils. Developing a suite of comparable performance measures is the next step in progressing this proposal, • establishing common formats for collecting data; and the LGA is preparing a project plan for how to progress this significant body of • the LGA collating and sharing such data; and work in consultation with councils. This has been included in successive state • ensuring the data is available to the public in a user friendly format. budget submissions, to the recent Productivity Commission Inquiry, as part of the LGA’s 2018 state election platform and as part of the current local government reform process.

Resolutions from the Ordinary General Meeting – 21 April 2017 Action Taken / Progress

8.10 Innovation and Investment in Commercial Activities (Adelaide) (SS GAROC has provided funding to enable the LGA to undertake this project. There 647971) has been a significant amount of consultation and research undertaken and a Guidance Paper for councils about considering commercial activities is being that the Ordinary General Meeting requests the LGA to explore local, national finalised. and international business models used by the local government sector to manage commercial operations and explore any current legislative barriers or A report will be provided to GAROC at its November 2019 meeting and provided opportunities that would enable greater innovation and investment in to councils following the GAROC meeting. commercial activities, in order to offset the cost of council services for our community.

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= Completed/No further action required Resolutions from the Annual General Meeting - 15 April 2016 Action Taken / Progress

6.3. Community Housing Update (LB 635995) The LGA has continued to advocate on this issue each time the opportunity is presented to raise this issue. that the Ordinary General Meeting: The LGA President has previously written to the Government, Opposition, all 1. notes the report; and South Australian cross-bench MPs and the Federal Treasurer highlighting the 2. supports the continued lobbying of the State Government to ensure ongoing impacts that the escalating number of management transfers of SA councils do not incur any loss of rateable income in rebates to Community Housing Trust (SAHT) properties to Community Housing Providers (CHPs) will Housing Providers including the transfer of public housing stock. have on councils and their communities. This issue was included in the LGA State Budget Submissions in 2017/18 and 2018/19, and in the LGA’s 2018 State Election Agenda. This issue is again included in the LGA’s 2019/20 State Budget submission. Community Housing formed part of the LGA’s public campaign on cost shifting during the state election period. This issue is included in the LGA’s 2019-2023 Advocacy Plan and the LGA will continue to advocate on this issue and will work collaboratively with the State Government and Community Housing Providers to seek a solution.

8.9. LED Street Lighting (SN 635689) The LGA Executive Director Commercial is leading a Public Lighting Working Group (PLWG) including Council representatives (metropolitan, peri-urban and that the Ordinary General Meeting requests the LGA to undertake further regional councils), DPTI, AER and SAPN to oversee the proposed transition to an negotiations with SA Power Networks and appropriate electricity regulators to Alternative Control Service (ACS) model from 1 July 2020 regarding future tariff produce a fair pricing agreement including a standard process, terms of pricing, infrastructure/maintenance/capital expenditure costs and service agreement and fair and transparent cost structure for councils to have existing agreements for Public Lighting. Under the new model, the Australian Energy street lights converted to LED. Regulator (AER) will determine tariff pricing over a 5-year period. This will provide Councils with some certainty in relation to projected Public Lighting costs. Both the PLWG and SAPN have lodged two rounds of submissions to the AER to date and the AER will release their draft determination on 8 October 2019. This will allow the PLWG and SAPN to consider the determination and work together and submit their final revised proposals back to the AER by 10 December 2019. It

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= Completed/No further action required is anticipated that the AER will then publish their final decision in April 2020 and the new tariff pricing model will take effect from 1 July 2020. The PLWG continues to meet regularly in establishing an agreed service level framework and an industry forum has been scheduled for 29 October 2019 to finalise the framework and provide stakeholders an overview of progress to date together with expected outcomes in the future.

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6.1 LGA Annual Report 2018-2019

LGA Business From: Lisa Teburea, Executive Director Public Affairs Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3C Improve LGA governance and operations with a focus on people, finances and our members Meeting: Annual General Meeting 31 October 2019 ECM: 688828

Recommendation That the Annual General Meeting receives and adopts the Local Government Association of South Australia’s Annual Report for the year 2018-2019.

Discussion6.1 The LGA’s 2018-2019 Annual Report, including abridged financial statements, was approved by the LGA Board of Directors on 19 September 2019 and is presented to the Annual General Meeting for adoption by member councils. The Annual Report is provided via a link to the LGA website and a printed copy will be available for each member council, at the meeting. Note that the consolidated audited financial statements of the LGASA and controlled entities for the year ending 30 June 2019 are presented as a separate report to the Annual General Meeting.

Financial and Resource Implications This activity has been anticipated in the LGA’s work program and resources are available to progress this work.

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6.2 Financial Statements 2018-2019

LGA Business From: Andrew Wroniak, Director Corporate Services Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3C Improve LGA governance and operations with a focus on people, finances and our members Meeting: Annual General Meeting 31 October 2019 ECM: 689088 Attachment: 689227

Recommendation That the Annual General Meeting receives and adopts the LGA of SA and controlled entities Financial Statements for the year 2018-2019.

Discussion The consolidated financial statements for 2018-2019 report a net deficit of $1.719 million before distributions by the Schemes to policyholders. After distributions, the net deficit was $6.691 million. The attached consolidated financial statements for 2018-2019 include the financial results for the following entities:  LGA Parent Entity Secretariat - Operations and Project activity - $1.102 million deficit  LGA Procurement - $118,000 surplus (before distributions to the LGA)  LGASA Mutual - $85,000 surplus  LGA Workers Compensation Scheme - $181,000 surplus (before distributions to members)  LGA Mutual Liability Scheme - $801,000 deficit (before distributions to members) The majority of the LGA’s Parent deficit was due to the expenditure of project reserves comprising accumulated grant funding it had received in previous years. The LGA’s Consolidated deficit was due to the distribution of surplus funds to all councils of $4.972 million in 2018/19 from the Mutual Liability Scheme and the Workers Compensation Scheme. LGA Secretariat and Projects (Parent Entity) - $1.102 million deficit The LGA Parent Entity Secretariat, excluding projects, recorded an operating deficit of $343,000 which was less than its budgeted deficit of $366,000. With the inclusion of project activities, the result is a deficit of $1.102 million which is largely due to a net expenditure of project funds received in previous financial years. The Secretariat has had a deficit budget in 2018/19 to continue funding the establishment and growth of LGA’s commercial services initiative to save costs and improve the services available to the Local Government sector. Commercial services has experienced good growth during the year and the Secretariat will continue to invest in this activity into 2019/20. The deficit was also due to the Secretariat continuing to fund the Emergency Management Functional Support Group and other related activities required to meet the LGA’s obligations under the State Emergency Management Plan (SEMP). In 2017/18, the State Government had

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 37 completed its grant funding for these services. To meet the requirements within the SEMP the LGA has continued to train council staff and provide other services. In 2018/19, $10.981 million was spent on project activity. This had decreased from $32.437 million in 2017/18 due to the one-off $24.074 million State Local Government Infrastructure Partnership Program. Some of the key projects managed in 2018/19 included the Regional Youth Traineeship program, Research and Development Scheme and the Council Ready Program. At the end of 2018-19, the project reserve balance was $6.075 million, a reduction of $1.010 million from 2017/18. This a positive result reflecting the active approach the LGA has taken to complete and close out projects. LGA Procurement - $118,000 surplus (before distributions to the LGA) The LGA Procurement result before distributions to the LGA Parent was a profit of $118,000. Following a payment to the LGA Parent of $200,000, this reduced to a deficit of $82,000. LGA Procurement more than doubled its income in 2018/19 due to additional consultancy activities and it securing the contract to print the material for the Local Government elections in November 2018. Over $60 million of purchases were made through LGA Procurement’s managed contracts in 2018/19, with councils being able to access savings through 27 different panel supplier contracts. While electricity remains the key offering to councils, other benefits were realised in Microsoft licensing, truck and heavy machinery, bulk card fuel purchases and engineering services. LGASA Mutual - $85,000 surplus LGSA Mutual as the parent entity of the Schemes recorded a small surplus for the year of $85,000. LGASA Mutual received $453,000, contributed equally from the LGAWCS and LGAMLS towards the corporate cost of operating during the year. These corporate costs include Board and employee costs, legal and consultants and reimbursing the LGA for the provision of finance, executive support and office accommodation. The amount charged by LGASA Mutual to the Schemes is primarily on a cost-recovery basis with a small proportion kept for cash flow purposes. LGA Workers Compensation Scheme - surplus $181,000 (before special distributions) The LGAWCS was able to reduce its member contributions by 8.8% in the 2018/19 financial year due to its strong financial position. In addition, a $2.978 million special distribution was returned to members and funding of a further $1 million was made available to members via the LGAWCS Risk Incentive Program. The LGAWCS recorded an operating surplus for the year of $181,000 before special distributions of $2.978 million. The net deficit for the year after special distributions was $2.796 million. In conjunction with the Schemes’ actuary, the LGASA Mutual Board determined the target range of accumulated services it wished to retain. This is guided by consideration of emerging risks, market volatility and claims experience. At the end of the year, the LGAWCS held accumulated funds of $22.1 million. The LGAWCS is nearing its target range of accumulated funds as a result it is likely that the payment of special distributions may need to end soon. LGA Mutual Liability Scheme - deficit $801,000 (before special distributions) In 2018/19, the level of contributions to the LGAMLS has remained at the same rate as 2017/18. In addition, the LGAMLS returned a special distribution of $1.993 million and a further $800,000 was made available to members via the Risk Incentive Program. The LGAMLS recorded an operating loss for the year of $801,000 before special distributions of $1.993 million. The net deficit for the year after special distributions was $2.795 million.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 38 As with the LGAWCS, in conjunction with the scheme’s actuary, the Board determined the target range of accumulated services for the LGAMLS that it wished to retain. At the end of the year, the LGAMLS maintained a healthy level of accumulated funds totalling $18.8 million. Due to the payment of the special distribution to councils over several years and the freezing of contributions in recent times, the LGAMLS is now also approaching the Board’s targeted range of accumulated surplus. As a result, it is expected that the payment of special distributions back to members is expected to end soon. Conclusion The Financial Statements for 2018-2019 have been reviewed by the LGA’s auditor PricewaterhouseCoopers and have been certified by the LGA Board. The report presents fairly the LGA’s performance and cash flows for the financial year and complies with Australian Accounting Standards and relevant legislative requirements.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 39

Local Government Association of South Australia

Consolidated Financial Report

For the Year Ended 30 June 2019 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 40

Local Government Association of South Australia

Contents For the Year Ended 30 June 2019

Page Board Members' Report 1 Statement of Profit or Loss and Other Comprehensive Income 4 Statement of Financial Position 5 Statement of Changes in Equity 6 Statement of Cash Flows 8 Notes to the Financial Statements 9 Statement by Members of the Board 43 Independent Auditor's Report 44 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 41

Local Government Association of South Australia

Board Members' Report 30 June 2019

The Board members present the financial report of the the Local Government Association of South Australia and its controlled entities ("the Group") for the financial year ended 30 June 2019 and the auditor's report thereon.

Board members The names of the Directors currently in office are: Mayor Gillian Aldridge Mayor Kevin Knight Mayor Peter Mattey Mayor Clare McLaughlin (appointed 31 January 2019) Mayor David O'Loughlin Mayor Keith Parkes Mayor Karen Redman Mayor Sam Telfer Mayor Erika Vickery Mayor Jan-Claire Wisdom

The following were Directors in office until 26 October 2018: Cr Mikki Bouchee Mayor Dave Burgess Deputy Mayor Janet Byram Mayor Denis Clark Cr Sue Clearihan Mayor Angela Evans Mayor Peter Hunt Mayor Neville Jaensch Mayor Dean Johnson Mayor Sam Johnson Deputy Mayor Arthur Mangos Mayor David Parkin Mayor John Rohde Mayor Glenn Rowlands Mayor Richard Sage

Principal activities The Group consists of the following entities, Local Government Association of South Australia (LGA), LGASA Mutual Pty Ltd (LGASA Mutual), Local Government Mutual Liability Scheme (LGAMLS), Local Government Workers Compensation Scheme (LGAWCS) and LGCS Pty Ltd as trustee for LGCS Trust No.1 (LGA Procurement). The principal activities of the Group during the financial year were as follows: LGA The LGA is a membership based peak body that provides leadership, advocacy and services to and on behalf on the member councils of South Australia. LGASA Mutual LGASA Mutual is wholly owned by the LGA, formed to provide independent strategic oversight of the LGAMLS and LGAWCS and to oversee the day to day service delivery contract held by Marsh Pty Ltd.

1 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 42

Local Government Association of South Australia

Board Members' Report 30 June 2019

LGAMLS The Scheme is a mutual risk product which offers discretionary indemnity and claims management service to its members in respect of their potential and actual civil liabilities. These services are provided to Local Government in South Australia, and include the provision of risk management services to minimise the occurrence of civil liabilities and the provision of claims management services. LGAWCS The Scheme is a mutual risk product which offers discretionary indemnity and injury management services to its members in respect of their potential and actual liabilities that arise under the provisions contained in the Return to Work Act 2014 (RTW Act). These services are provided to Local Government in South Australia, and include the provision of claims management, worker rehabilitation and occupational health and safety management services, to minimise the occurrence of workers compensation liabilities. LGA Procurement LGA Procurement provides procurement services to all South Australian councils and related entities. These services include training, templates and a large range of contracts providing benefits from aggregating procurement and specialty skills.

Results and review of operations for the year The overall deficit of the Group for the financial year before special distributions was $ 1,719,358 (2018FY surplus: $3,558,786). After the special distributions to the policy holders of $4,971,816 (2018FY: $5,000,000) the net deficit was $6,691,174 (2018FY: $1,441,214). The results for each of the entities before inter-entity eliminations are as follows: LGA The deficit in the LGA amounted to $1,102,578 in the 2019FY (2018FY surplus: $960,411) which is attributable to net expenditure on projects of $759,309 in the 2019FY. Excluding all project activity, the LGA is reporting an operating deficit of $343,269 in the 2019FY compared with a $488,371 surplus in the 2018FY. LGASA Mutual In the 2019FY, LGASA Mutual is reporting an operating surplus of $84,682. As it was recently established there are no comparatives for the parent entity in the 2018FY. LGAMLS The operating deficit for the 2019FY amounted to $801,498 (2018FY surplus: $475,740) before special distributions of $1,993,646 (2018FY: $2,000,000) to members. The net deficit for the year after special distributions was $2,795,144 (2018FY: $1,524,260). The LGAMLS provided to members a further $537,757 (2018FY: $796,079) via the risk incentive fund. LGAWCS The operating deficit for the 2019FY amounted to $181,904 (2018FY: $2,140,443) before the special distributions of $2,978,170 (2018FY: $3,000,000) to members, the net deficit for the year was $2,796,266 (2018FY: $859,557). The LGAWCS provided to members a further $560,304 (2018FY: $763,568) in the risk incentive fund. LGA Procurement The operating profit for the 2019FY was $118,130 before an ex-gratia distribution to the LGA of $200,000. The net deficit after the distribution was $81,870 in 2019FY compared to a deficit of $12,362 in 2018FY.

Significant changes in state of affairs In 2019FY a new board was established for LGASA Mutual. In the opinion of the Board members, there have been no other significant changes in the state of affairs of the entities in the Group during the year.

2 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 43

Local Government Association of South Australia

Board Members' Report 30 June 2019

Likely developments Information about the likely developments in the operations of the Group and the expected results of those operations in future financial years has not been included in this report.

Environmental issues The Group's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a State or Territory of Australia. However, the Board believes that the Group has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements as they apply to the Group.

Indemnification and insurance of officers and auditors The Board members have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the members of the Board and officers’ liability and legal expenses insurance contracts as such disclosure is prohibited under the terms of the contract.

Signed in accordance with a resolution of the Members of the Board:

President: ...... Chief Executive Officer: ...... Mayor Sam Telfer Matthew Pinnegar

Dated this ...... 27 day of ...... September 2019

3 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 44

Local Government Association of South Australia

Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2019

Consolidated Parent 2019 2018 2019 2018 Revenue from continuing operations Note $ $ $ $ Member contributions 7 31,940,944 33,984,661 - - Grant revenue 9,385,488 32,853,386 10,344,822 32,853,386 Subscriptions 2,278,856 2,227,613 2,278,856 2,227,613 Other revenue 7 6,124,590 6,964,661 5,882,171 6,678,114 Finance income 2,139,049 1,840,659 72,323 64,708

Total revenue from continuing operations 51,868,927 77,870,980 18,578,172 41,823,821 Expenses Employee benefits expense (6,321,180) (5,489,865) (5,155,979) (4,865,054) Risk management, levies and other scheme expenses (11,743,941) (11,625,873) - -

Depreciation (775,676) (719,655) (767,279) (712,288) Grant expenditure 8 (7,826,726) (28,691,255) (7,826,726) (28,691,255) Net claims expense 9 (11,020,309) (10,491,237) - - Catastrophe insurance expense (8,046,934) (8,214,316) - - Other expenses from ordinary activities (6,402,657) (8,023,366) (5,138,721) (6,207,142) Finance expenses (1,450,862) (1,056,627) (792,045) (387,671)

Total Expenses (53,588,285) (74,312,194) (19,680,750) (40,863,410) (Deficit)/surplus from ordinary activities before special distribution to policy holders (1,719,358) 3,558,786 (1,102,578) 960,411

Special distribution to policy holders (4,971,816) (5,000,000) - -

(Deficit)/surplus from ordinary activities (6,691,174) (1,441,214) (1,102,578) 960,411 Total comprehensive (deficit)/surplus for the year (6,691,174) (1,441,214) (1,102,578) 960,411

The accompanying notes form part of these financial statements. 4 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 45

Local Government Association of South Australia

Statement of Financial Position As at 30 June 2019

Consolidated Parent 2019 2018 2019 2018 Note $ $ $ $ ASSETS CURRENT ASSETS Cash and cash equivalents 10 38,160,636 35,865,133 2,832,462 3,997,109 Trade and other receivables 11 18,234,173 16,573,652 4,371,929 3,914,120 Financial assets 12 27,677,479 28,089,278 - - Prepayments 58,539 287,245 43,443 25,372 Reinsurance and other recoveries receivables 13 3,421,523 3,555,301 - -

TOTAL CURRENT ASSETS 87,552,350 84,370,609 7,247,834 7,936,601 NON-CURRENT ASSETS Trade and other receivables 11 19,890,336 22,017,835 19,890,336 22,017,835 Financial assets 12 6,022,079 14,124,577 2 2 Property, plant and equipment 14 22,442,779 22,799,737 22,402,191 22,760,917 Reinsurance and other recoveries receivables 13 10,809,973 9,174,786 - -

TOTAL NON-CURRENT ASSETS 59,165,167 68,116,935 42,292,529 44,778,754 TOTAL ASSETS 146,717,517 152,487,544 49,540,363 52,715,355

LIABILITIES CURRENT LIABILITIES Trade and other payables 15 3,300,366 3,390,834 1,598,803 1,524,657 Borrowings 17 2,127,498 2,056,461 2,127,498 2,056,461 Employee benefits 16 749,319 726,522 584,688 688,801 Unearned member contributions 18 10,934,851 10,481,513 - - Outstanding claims liability 19 16,974,052 16,391,035 - -

TOTAL CURRENT LIABILITIES 34,086,086 33,046,365 4,310,989 4,269,919 NON-CURRENT LIABILITIES Borrowings 17 19,890,336 22,017,835 19,890,336 22,017,835 Catastrophe margin 85,000 85,000 - - Employee benefits 16 111,465 135,631 105,978 91,964 Outstanding Claims Liability 19 23,190,643 21,157,552 - -

TOTAL NON-CURRENT LIABILITIES 43,277,444 43,396,018 19,996,314 22,109,799 TOTAL LIABILITIES 77,363,530 76,442,383 24,307,303 26,379,718 NET ASSETS 69,353,987 76,045,161 25,233,060 26,335,637

EQUITY Reserves 20 16,476,720 16,389,136 13,819,013 14,829,489 Retained earnings 52,877,267 59,656,025 11,414,047 11,506,148

69,353,987 76,045,161 25,233,060 26,335,637 TOTAL EQUITY 69,353,987 76,045,161 25,233,060 26,335,637

The accompanying notes form part of these financial statements. 5 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 46

Local Government Association of South Australia

Statement of Changes in Equity For the Year Ended 30 June 2019

2019 Consolidated Asset Risk Retained Revaluation Project incentive Total Earnings Reserve reserves reserve reserves Total equity Note $ $ $ $ $ $ Balance at July 1, 2018 59,656,025 7,743,304 7,086,185 1,559,647 16,389,136 76,045,161 Total profit (loss) for the year (6,691,174) - - - - (6,691,174) Transfer (to)/ from reserves 20 1,010,476 - (1,010,476) - (1,010,476) - Transfer (to)/ from retained earnings (1,098,060) - - 1,098,060 1,098,060 -

Balance at 30 June 2019 52,877,267 7,743,304 6,075,709 2,657,707 16,476,720 69,353,987

2018 Consolidated Asset Risk Retained Revaluation Project incentive Total Earnings Reserve reserves reserve reserves Total equity Note $ $ $ $ $ $ Balance at July 1, 2017 63,063,161 7,743,304 6,679,910 - 14,423,214 77,486,375 Total profit (loss) for the year (1,441,214) - - - - (1,441,214) Transfer (to)/ from reserves 20 (406,275) - 406,275 - 406,275 - Transfer (to)/ from retained earnings (1,559,647) - - 1,559,647 1,559,647 -

Balance at 30 June 2018 59,656,025 7,743,304 7,086,185 1,559,647 16,389,136 76,045,161

The accompanying notes form part of these financial statements. 6 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 47

Local Government Association of South Australia

Statement of Changes in Equity For the Year Ended 30 June 2019

2019 Parent Asset Risk Retained Revaluation Project incentive Total Earnings Reserve reserves reserve reserves Total equity Note $ $ $ $ $ $ Balance at July 1, 2018 11,506,148 7,743,304 7,086,185 - 14,829,489 26,335,637 Total profit (loss) for the year (1,102,578) - - - - (1,102,578) Transfer to/ (from) reserves 20 1,010,477 - (1,010,476) - (1,010,476) - Balance at 30 June 2019 11,414,047 7,743,304 6,075,709 - 13,819,013 25,233,060

2018 Parent Asset Risk Retained Revaluation Project incentive Total Earnings Reserve reserves reserve reserves Total equity Note $ $ $ $ $ $ Balance at July 1, 2017 10,952,012 7,743,304 6,679,910 - 14,423,214 25,375,226 Total profit (loss) for the year 960,411 - - - - 960,411 Transfer (to)/ from reserves 20 (406,275) - 406,275 - 406,275 -

Balance at 30 June 2018 11,506,148 7,743,304 7,086,185 - 14,829,489 26,335,637

The accompanying notes form part of these financial statements. 7 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 48

Local Government Association of South Australia

Statement of Cash Flows For the Year Ended 30 June 2019

Consolidated Parent 2019 2018 2019 2018 Note $ $ $ $ CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers/members (inclusive of GST) 46,645,448 46,600,116 10,737,552 9,462,958 Receipts from grants 9,385,488 8,384,004 10,344,822 8,398,706 Interest received 2,139,049 2,192,299 72,323 58,823 Payments to suppliers and employees (inclusive of GST) (39,287,697) (34,470,550) (11,235,558) (11,169,445) Claims paid (8,404,201) (10,549,431) - - Borrowing costs (1,450,862) (1,056,627) (792,045) (387,671) Distribution back to policy holders (4,971,816) (5,000,000) - - Grant expenditure (7,826,726) (28,691,255) (7,826,726) (28,691,255) Net cash provided by/(used in) operating activities 10 (3,771,317) (22,591,444) 1,300,368 (22,327,884)

CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment - 12,727 - 12,727 Proceeds from financial assets 8,542,000 23,993,779 - - Purchase of property, plant and equipment (418,718) (131,733) (408,553) (131,733) Net cash provided by/(used in) investing activities 8,123,282 23,874,773 (408,553) (119,006)

CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings - 23,574,296 - 23,574,296 Repayment of borrowings (2,056,462) - (2,056,462) - Net cash provided by/(used in) financing activities (2,056,462) 23,574,296 (2,056,462) 23,574,296

Net increase/(decrease) in cash and cash equivalents held 2,295,503 24,857,625 (1,164,647) 1,127,406 Cash and cash equivalents at beginning of year 35,865,133 11,007,508 3,997,109 2,869,703 Cash and cash equivalents at end of financial year 10 38,160,636 35,865,133 2,832,462 3,997,109

The accompanying notes form part of these financial statements. 8 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 49

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

1. Parent reporting

The following information has been extracted from the books and records of the parent, Local Government Association of South Australia and has been prepared in accordance with Accounting Standards.

The parent information has been disaggregated into Secretariat activity and Project activity. Secretariat activity details the annual day to day operations of the LGA and Project Activity includes activity funded from external Grants and Contributions to manage committed projects with specified outcomes.

Statement of Profit or Loss and Other Comprehensive Income

Secretariat Secretariat Project Project Total Total 2019 2018 2019 2018 2019 2018 $ $ $ $ $ $

Revenue from continuing operations Subscriptions 2,278,856 2,227,613 - - 2,278,856 2,227,613 Grant revenue 202,423 437,767 10,142,398 32,415,619 10,344,821 32,853,386 Other revenue 5,850,351 6,240,346 31,820 437,768 5,882,171 6,678,114 Finance income 24,885 9,013 47,438 55,695 72,323 64,708

Total revenue from continuing operations 8,356,515 8,914,739 10,221,656 32,909,082 18,578,171 41,823,821 Expenses Employee benefits - operating (4,450,106) (4,040,618) (705,872) (824,436) (5,155,978) (4,865,054) Grant expenditure - - (7,826,726) (28,691,255) (7,826,726) (28,691,255) Depreciation (767,279) (712,288) - - (767,279) (712,288) Other expenses (3,464,947) (3,666,175) (1,673,774) (2,540,967) (5,138,721) (6,207,142) Finance expenses (17,452) (7,287) (774,593) (380,384) (792,045) (387,671)

(8,699,784) (8,426,368) (10,980,965) (32,437,042) (19,680,749) (40,863,410) Total comprehensive income/(loss) (343,269) 488,371 (759,309) 472,040 (1,102,578) 960,411

Contingent liabilities

The parent entity did not have any contingent liabilities as at 30 June 2019 or 30 June 2018.

9 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 50

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

2. Summary of Significant Accounting Policies

a. Basis of preparation

These non-statutory general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and relevant South Australian Legislation.

The financial statements are presented in Australian dollars, which is the Group's functional and presentation currency.

Accounting policies

The financial statements include the consolidated of LGA and its' controlled entities ('the Group'). LGA is a body corporate established under the Local Government Act 1999 and is a not-for-profit entity.

The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial statements. The accounting policies have been consistently applied, unless otherwise stated.

Outlined below is significant accounting policies related to the overall Group. Policies related specifically to the LGAWCS and LGAMLS ('the Schemes') have been separately disclosed in Note 2(i) - (o).

Historical cost convention

The consolidated financial statements have been prepared on the historical cost basis except for selected non-current assets, and financial assets and financial liabilities for which fair value basis of accounting has been applied.

Consolidation

The consolidated financial statements include the financial position and performance of controlled entities from the date on which control is obtained until the date that control is lost. The Group controls an entity when the Group is exposed to, or has the rights to, variable returns from its involvements with the entity and an ability to affect those returns through its power to direct the activities of the entity.

Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between entities in the consolidated entity have been eliminated in full for the purpose of these financial statements.

Appropriate adjustments have been made to a controlled entity’s financial position, performance and cash flows where the accounting policies used by that entity were different from those adopted by the consolidated entity. All controlled entities have a June financial year end.

When controlled entities have entered or left the consolidated entity during the year, their operating results have been included/ excluded from the date control was obtained or until the date of control ceased.

A list of controlled entities is contained in Note 23 to the financial statements.

b. New Accounting Standards and Interpretations

New accounting standards applied during the period

AASB 9 Financial Instruments

The Group has adopted AASB 9 Financial Instruments for the first time in the current year with a date of initial adoption of 1 July 2018.

10 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 51

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

2. Summary of Significant Accounting Policies

b. New Accounting Standards and Interpretations

AASB 9 replaces the provisions of AASB 139 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.

The primary change with effect on the Group is the change to a forward looking lifetime expected credit loss model. The Group has considered forward looking assumptions and information regarding expected future conditions affecting historical customer default rates. Based on the assessment performed, the standard did not have a material impact on the Group's results. The adoption of AASB 9 did not have any impact on the amounts recognised in the prior periods and will also not affect the current period. The accounting policy for investments has been updated to reflect the new standard in Note 2(d) and for the receivables in Note 11.

New accounting standards for application in future periods

AASB 15 Revenue from Contracts with Customers and AASB 1058 Income of Not-for-profit entities (effective 1 July 2019)

Requirements

The AASB has issued a new standard for income recognition by public and private sector not-for-profit (NFP) entities. This will replace AASB 1004 Contributions and introduce major changes to the income recognition by public and private sector NFPs. Under the new standard, NFPs will need to determine whether a transaction is a genuine donation (accounted for under AASB 1058) or a contract with a customer (accounted for under AASB 15).

AASB 15 was issued in December 2014, and amended in May 2016, and establishes a five-step model to account for revenue arising from contracts with customers. Under AASB 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Australian Accounting Standards. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 January 2019.

Impact

The LGA is currently undergoing a detailed assessment of the introduction of AASB 15 and AASB 1058.

AASB 16 Leases (effective 1 July 2019)

Requirements

AASB 16 removes the classification of leases as either operating or finance leases for the lessee, effectively treating all leases as finance leases. Short term leases (less than 12 months) and leases of a low value are exempt from the lease accounting requirements. Lessor accounting remains similar to current practice.

Impact

During 2020, LGA will continue to assess the potential effect of AASB 16 on its consolidated financial statements.

c. Income Tax

The Group is exempt from income tax under the Income Tax Assessment Act.

11 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 52

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

2. Summary of Significant Accounting Policies

d. Financial instruments

Current period policy (from 1 July 2018)

Recognition and derecognition

Regular way purchases and sales transaction of financial assets are recognised on trade-date, the date on which the group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the group has transferred substantially all the risks and rewards of ownership.

Classification

From 1 July 2018, the group classifies its financial assets in the following measurement categories:

 those to be measured subsequently at fair value (either through OCI or through profit or loss), and

 those to be measured at amortised cost

The classification depends on the Group's business model for managing financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The group reclassifies debt investments when and only when its business model for managing those assets changes.

Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in the profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest.

Subsequent measurement of debt instruments depends on the Group's business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:

 Amortised cost: assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost.

 FVOCI: Assets that are held for collection of contractual cash flows and for selling financial assets, where the assets' cash flows represent solely payment of principal and interest are measured at FVOCI.

 FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognised in the profit or loss and presented net within other gains/(losses) in the period in which it arises.

The Group subsequently measures all equity investments at fair value.

12 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 53

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

2. Summary of Significant Accounting Policies

d. Financial instruments

Impairment

From 1 July 2018, the Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Prior period policy (prior to 1 July 2018)

Recognition

Financial instruments are recognised initially at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Financial assets at fair value through profit and loss

A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139: Recognition and Measurement of Financial Instruments. Derivatives are also categorised as held for trading unless they are designated as hedges. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the profit or loss in the period in which they arise.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Held-to-maturity investments

These investments have fixed maturities, and it is the consolidated entity's intention to hold these investments to maturity. Any held-to-maturity investments held by the entity are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity.

Financial liabilities

Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments payments and amortisation.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation technologies are applied to determine fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models. 13 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 54

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

2. Summary of Significant Accounting Policies

d. Financial instruments

Impairment

At each reporting date, the consolidated entity reviews the carrying values to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less cost to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the profit and loss.

e. Impairment of non-financial assets

At the end of each reporting period the Group determines whether there is an evidence of an impairment indicator for non-financial assets. At each reporting date, the Group review the carrying values to of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the profit or loss.

Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

f. Capital Management Policy

The Group's objective when managing capital is to safeguard their ability to continue as a going concern, so that they can continue to provide services to members.

In order to maintain or adjust the capital structure, LGA may adjust the amount of contribution received from its members, adjust the excess surplus to its members via special distributions or enter into debt agreements.

LGA monitors capital on the basis of the total accumulated surplus. A special distribution may be made to its members where the total accumulated surplus exceeds the Committee Member's targeted surplus.

g. Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office.

Receivables and payable in the statement of financial position are stated inclusive of GST.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

h. Comparative Figures

Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

14 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 55

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

2. Summary of Significant Accounting Policies

i. Classification of Insurance Contracts

The Schemes are Mutual Risk Products as defined by the Australian Securities and Investment Commission and are neither authorised under, nor subject to, the provisions of the Insurance Act. The Schemes are not a product regulated by the Australian Prudential Regulation Authority.

For the purposes of these financial statements only, the arrangements entered into with members to provide indemnity cover are treated as insurance contracts.

These arrangements exist whereby the Schemes may accept significant insurance risk from the members by making discretionary decisions on whether to compensate the members for a future civil liability event.

Insurance risk is risk, other than financial risk, transferred from the holder of a contract to the issuer.

j. Unexpired Risk Liability

At each reporting date the Schemes assess whether the unearned members' contribution liability sufficient to cover all expected future cash flows relating to future claims against current insurance contracts. This assessment is referred to as the liability adequacy test and is performed separately for each group of contracts subject to broadly similar risks and managed together as a single portfolio.

Provision is made for unexpired risks arising from general business where the expected value of claims and expenses attributed to the unexpired periods of policies in force at the balance date exceeds the unearned members' contribution liability in relation to such policies.

If the present value of the expected future cash flows relating to future claims plus the additional risk margin to reflect the inherent uncertainty in the central estimate exceeds the unearned members' contribution liability then the unearned contribution liability is deemed to be deficient.

If the present value of the expected future cash flows relating to future claims plus the additional risk margin to reflect the inherent uncertainty in the central estimate exceeds the unearned members' contribution liability then the unearned contribution liability is deemed to be deficient.

The entire deficiency, gross and net of reinsurance, is recognised immediately in the statement of profit or loss and other comprehensive income. As the Schemes do not have any intangible assets or deferred acquisition costs, the deficiency would be recorded in the statement of financial position as an unexpired risk liability.

k. Outwards Reinsurance

Premiums credited to reinsurers are recognised as outwards reinsurance premium expense in accordance with the pattern of reinsurance service received over the membership or indemnity periods based on time.

l. Claims

The liability for outstanding claims is measured as the central estimate of the present value of the expected future payments for claims incurred at the reporting date, with an additional risk margin to allow for the inherent uncertainty in the central estimate.

Claims expense and a liability for outstanding claims are recognised as losses occur. The liability for outstanding claims includes claims reported but not yet paid, claims incurred by not yet reported (IBNR) and the anticipated direct and indirect cost settling those claims. Claims outstanding are assessed by reviewing individual claim files and estimating settlement costs of not reporting claims using statistics based on past experience and trends.

15 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 56

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

2. Summary of Significant Accounting Policies

l. Claims

Excess amounts recoverable from a Scheme member are payable and are treated as a contribution towards settlement of a claim.

The liability for outstanding claims is measured as the present value of the expected future payments, reflecting the fact that all the claims do not have to be paid out in the immediate future.

The expected future payments are estimated on the basis of the ultimate cost of settling claims, which is affected by factors arising during the period to settlement such as normal inflation. The expected future payments are discounted to present value at balance date using a risk free rate.

Outstanding claim provisions were determined taking into account an actuarial review of the Schemes in July 2019, by Cumpston Sarjeant Pty Ltd. This review was based on initial claims data to 31 March 2019 with findings in their reports issued in May 2019. These reports were updated with claims data to 30 June 2019 and included in their reports issued in August 2019.

An actuarial peer review is conducted every three years. A peer review was conducted for the financial period ended 30 June 2017 by Taylor Fry Pty Ltd, consulting actuaries and analytical professionals.

The liability for outstanding claims is measured as the present value of the expected future payments, reflecting the fact that all claims do not have to be paid out in the immediate future. The expected future payments are estimated on the basis of the ultimate cost of settling claims, which is affected by factors arising during the period to settlement such as normal inflation. The expected future payments are discounted to present value at balance date using a risk free rate.

m. Catastrophe Margin

The Scheme (Workers Compensation Scheme) has recognised the likelihood of future claims in relation to asbestos related illnesses. The provision is reviewed annually and the Scheme takes guidance from the Actuary in setting the amount provided.

n. Special Distribution to Policy Holders

The Mutual Liability Scheme and Workers Compensation Scheme set maximum levels of accumulated funds that should be held each year. When funds exceed the maximum level, a distribution of funds is provided to member councils.

o. Assets Backing General Insurance Liabilities

The Scheme's investment strategies manage the funds invested with the Local Government Finance Authority of South Australia.

The Schemes have determined that all assets are held to back its insurance liabilities and their accounting treatment is described below. As these assets are managed on a fair value basis, they have been valued at fair value through profit or loss.

The accounting policies applying to assets held to back general insurance activities are:

Financial Assets

The Schemes value financial assets and any assets backing insurance activities at fair value through profit or loss.

16 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 57

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

2. Summary of Significant Accounting Policies

o. Assets Backing General Insurance Liabilities Details of fair value for the different types of financial assets are summarised below:

- Cash assets and bank overdrafts are carried at face value of the amounts deposited or drawn. The carrying amounts of cash assets and bank overdrafts approximate to their fair value. For the purposes of the statement of cash flows, cash includes cash on hand, call deposits and deposits where maturity is less than 3 months, net of bank overdrafts.

- Fixed interest securities are recorded at amounts based on valuation using rates of interest equivalent to the yields obtainable on comparable investments at balance date.

Receivables

Contributions due from members and amounts due from reinsurers under the reinsurance program are initially recognised at face value, being the amounts due. They are subsequently measured at fair value that is approximated by taking the initially recognised amount and reducing it for impairment as appropriate.

A provision for impairment of receivables is established when there is objective evidence that the Scheme will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows. The discount is calculated using the original effective interest rate. Where there is impairment a charge is recognised in the statement of profit or loss and other comprehensive income.

3. Critical Accounting Estimates and Judgments

The Board members make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below.

Valuation of land and buildings

Land and buildings are recognised at fair value based on periodic, but at least triennial valuations by external independent valuers, less subsequent depreciation for buildings. A revaluation surplus is credited to reserves in equity. Detailed information about this estimate and judgement is included in the Note 6.

17 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 58

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

3. Critical Accounting Estimates and Judgments Actuarial Assumptions and Methods - LGAMLS and LGAWCS

Actuarial Assumptions

The following assumptions have been made in determining the outstanding claims liabilities.

Key Actuarial Assumptions

LGAMLS LGAWCS 2019 2018 2019 2018 Case estimate development (25.00)% (20.00)% - - Wage inflation 3.65% 3.50% 3.65% 3.50% Superimposed inflation 2.00% 2.00% 2.00% 2.00% Discount rate 1.00% 2.00% 1.00% 2.00%

Process used to determine actuarial assumptions

A description of the processes used to determine the above key actuarial assumptions is provided below.

In the independent actuary review completed in August 2019, the actuary was provided with claims data on claims incurred net of excesses and anticipated recoveries to reduce the liability of members. The actuary allow for:

 Developments in case estimates on reported claims based on an explicit case development parameter or Project Case Estimates method;

 Claims incurred but not reported and potential recoveries were all estimated by an an inflation adjusted Payment per Claim Incurred method based on ultimate non-zero claim numbers projected by a Chain Ladder method and 5 year averages of late reported claims;

 Cost of claims likely to be reopened were estimated by an inflation adjusted Payment per Claim Incurred method based on ultimate non-zero claim numbers projected by a Chain Ladder method and 5 year average of reported claims;

 Expected investment earnings by applying a fitted payment patter to the undiscounted sum of the above components and then discounts at the assumed discount rate;

 There were no recoveries either due or expected from reinsurance contracts.

Case estimate development

Development in net case estimates applied to open claims was -25.0% (2018 -20.0%) for all accident years.

18 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 59

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

3. Critical Accounting Estimates and Judgments Wage inflation

The independent actuary assumed wage inflation, per annum, based on recent inflation levels in South Australia as follows

2019 2018 LGAMLS 3.65% 3.50% LGAWCS 3.65% 3.50%

Claim administration expense

The independent actuary has not made an allowance for claim administration expenses on open claims as the amount of fees already represent approximately 4.5% of payments. A fixed fee of $180K is charged by the Scheme Manager for this expense. The amount allowed are comparable to those normally made by the public liability and professional indemnity insurers.

Superimposed inflation

The independent actuary assumed future superimposed inflation, the rate at which claims increase in excess of wage inflation, per annum as follows

2019 2018 LGAMLS 2.00% 2.00% LGAWCS 2.00% 2.00%

Superimposed inflation occurs de to non-economic effects such as court settlements increasing at a faster rate than wages or CPI inflation. Though there is no discernible trend of superimposed inflation in inflated claims insured, the independent actuary determined it is appropriate to included a nominal allowance for such inflation in future claims.

Discount rate

The estimates of the outstanding claims liabilities were discounted to allow for future investment income gains attributable to the liabilities. The estimates of reinsurance recovery assets were discounted to allow for future income losses attributable to the assets. The independent actuary assumed a discount rate of 1.00% per annum (2018 2.00%) based on current medium-term bond yields.

Sensitivity Analysis

The outstanding claims liability included in the reported results are calculated based on the key actuarial assumptions as disclosed above. The movement in any of the above key actuarial assumptions will impact the performance and total accumulated funds of the Schemes.

19 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 60

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

3. Critical Accounting Estimates and Judgments The table below describes how a change in each of the assumptions will affect the outstanding claims liabilities

Wage inflation Expected future payments are inflated to take into account inflationary increases. An increase or decrease in the assumed level of economic inflation would have a corresponding impact on claims expenses, with particular reference to longer tail claims. Superimposed inflation In addition to the general economic inflation rate an amount is superimposed to take account of non-economic inflationary factors, such as increased in court awards. Such rate of superimposed inflation are specific to the model adopted. An increase or decrease in the assumed levels of superimposed inflation would have a corresponding impact on claims expense, with particular reference to longer tail claims Discount Rate The outstanding claims liability is calculated by reference to expected future payments. These payments are discounted to adjust for the time value of money. An increase or decrease in the assumed discount rate will have an opposing impact on total claims expense Case Estimate Development Case estimates are initially established in accordance with established guidelines and by reference to the known facts. Where new information becomes available the initial case estimates will change. This development movement applied to open claims and will have a corresponding impact on claims expense

(i) LGAMLS

Profit/(loss) Movement by applying variable Total Movement in gross of Net of Accumulated Variable variable reinsurance reinsurance Funds Wage inflation 3% 1,291,000 460,000 (50,000) (3%) (1,114,000) (40,000) 48,000 Superimposed inflation 3% 1,312,000 41,000 (51,000) (3%) (1,129,000) (36,000) 48,000 Discount rate 3% (1,254,000) (45,000) 11,000 (3%) 1,557,000 54,000 (13,000) Case - estimate development 5% 422,000 3,000 (3,000) (5%) (394,000) (2,000) 3,000

20 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 61

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

3. Critical Accounting Estimates and Judgments (ii) LGAWCS

Variable Profit/(loss) Total Movement in Gross of Net of Accumulated variable reinsurance reinsurance Funds Wage inflation 3% 508,000 - (508,000) (3%) (403,000) - 402,000 Superimposed inflation 3% 517,000 - (518,000) (3%) (409,000) - 408,000 Discount rate 3% 1,308,000 - 1,308,000 (3%) 1,600,000 - (1,600,000)

4. Insurance Contracts - Risk Management (LGAMLS and LGAWCS)

Risk management objectives and policies for mitigating insurance risk

LGAMLS and LGAWCS are established by legislation contained in the Local Government Act 1999. Membership is available to local government councils and prescribed bodies. LGAMLS and LGAWCS operate in South Australia to provide a claims management service to members in respect of their potential and actual liabilities. A member may seek indemnity from the Schemes in respect of a claim.

Under the rules, the LGA may in its sole and absolute discretion determine whether indemnity will be granted in respect of a claim. Should indemnity be granted the LGAMLS and LGAWCS offers unlimited cover.

Actuarial models, using information from management, information systems are used to confirm contributions and monitor claim patterns. Past experience and statistical methods are used as part of the process.

The principal risk is that the frequency and severity of claims is greater than expected. Civil Liability Risk events are, by their nature, random, and the actual number and size of events during any one-year may vary from those estimated using established statistical techniques.

Objectives in managing risk arising from insurance and policies for mitigating those risks

The Schemes have an objective to control insurance risk thus reducing the volatility of its operating surplus. In addition to the inherent uncertainty of civil liability risks, which can lead to variability in the loss experience, operating surpluses can also be affected by external factors such as competition and movements in asset values.

LGAMLS and LGAWCS rely on a strong relationship with its members and actively encourages them to adopt practices of risk management that reduce the incidence of claims to the Schemes.

Reinsurance strategy

LGAMLS and LGAWCS adopt a conservative approach towards management of risk and does this by utilising various risk transfer options. The Board of the schemes determine the level of risk, which is appropriate for the LGAMLS and LGAWCS having regards to ordinary concepts of prudence and regulatory constraints. The risk transfer arrangements adopted by the Schemes include the utilisation of commercial reinsurance arrangements arrangements adopted by the Schemes include the utilisation of commercial reinsurance arrangements and the negotiation of an indemnity

21 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 62

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

4. Insurance Contracts - Risk Management (LGAMLS and LGAWCS) agreement with the South Australian State Government Treasurer. These risk transfer arrangements assist the Schemes to limit its liability on single large claims and catastrophic events. These programs are regularly reviewed each year to ensure that they continue to meet the risk needs of LGAMLS and LGAWCS.

In the past ten years, LGAMLS and LGAWCS have managed their reinsurance program and risk transfer arrangements so that the exposure to each claim has been markedly reduced. The Schemes have maintained its Treasurer’s Indemnity on a long-term basis with an expiry in 2021.

Terms and conditions of membership

Membership to LGAMLS and LGAWCS is offered to eligible bodies and renewed annually on 30 June. Payment of the annual contribution confirms continuation of membership. Termination of membership is subject to at least 90 days written notice of intention as laid out by the rules. Once a claim is accepted and indemnity granted each claim is handled individually on the circumstances peculiar to the claim.

Product features (Mutual Liability Scheme)

The Scheme operates in South Australia. Should a claim be accepted the scheme provides indemnity to the member in respect of their civil liabilities for an unlimited amount, subject to any excess for any claim incurred anywhere throughout the world.

Operating surpluses arise from the total contributions charged to members less the amounts paid to cover claims and the expenses incurred by the Scheme.

Product features (Workers Compensation Scheme)

LGAWCS operates in South Australia, whereby the LGA is a group self-insurer which enables the scheme to operate under a delegated authority as described in the Return to Work Act 2014 (RTW Act). Should a claim be accepted, the scheme provides indemnity to the member in respect of their workers' compensation liabilities for amounts and benefits detailed in the RTW Act.

Operating surpluses arise from the total contributions charged to members less the amounts paid to cover claims and the expenses incurred by the Scheme.

Management of risks

The key insurance risks that affect LGAMLS and LGAWCS are contribution risk, and claims experience risk.

Contribution risk is the risk that the Schemes do not charge contributions appropriate for the indemnity cover they provide. LGAMLS and LGAWCS partially manage contribution risk through their proactive approach to risk management that addresses all material risks both financial and non-financial. There are no specific terms and conditions that are expected to have a material impact on the financial statements.

Claims experience risk is managed through the non-financial risk assessment and risk management and reinsurance management process. Claims experience is monitored on an on going basis to ensure that any adverse trending is addressed. LGAMLS and LGAWCS are able to reduce the claims experience risk of severe losses through the reinsurance program, and by managing the concentration of insurance risks.

Concentration of insurance risks

Insurance risk is managed by taking a long term approach to setting the annual contribution rates that eliminates price fluctuations, appropriate investment strategy, reinsurance and by maintaining an active state-wide risk management profile. It is vital that the LGAMLS and LGAWCS keep abreast of changes in the general economic, legal and commercial environment in which it operates.

22 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 63

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

4. Insurance Contracts - Risk Management (LGAMLS and LGAWCS)

Interest rate risk

The reinsurance indemnity contracts contain no clauses that expose LGAMLS and LGAWCS directly to interest rate risk. The reinsurance contracts are long term arrangements, reviewed and payable annually.

Credit risk

LGAMLS and LGAWCS are exposed to credit risk on insurance contracts as a result of exposure to reinsurers. The credit risk to reinsurers is managed through the Schemes regularly monitoring the financial rating of the reinsurers both prior to and during the reinsurance program.

In relation to the reinsurance and other receivables disclosed in note 12 in relation to the LGAMLS, the credit risk exposure is equal to the undiscounted aggregate value of claims. As at 30 June 2019 this amounted to $17.99 million (2018: $16.49 million).

5. Financial Risk Management

The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk relating to interest rate risk.

Financial instruments used

The principal categories of financial instrument used by the Group consists mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable loans to and from subsidiaries, bills and leases. Consolidated Parent 2019 2018 2019 2018 $ $ $ $ Financial assets Cash and cash equivalents 38,160,636 35,865,133 2,832,462 3,997,109 Trade and other receivables 38,124,509 38,591,487 24,262,265 25,931,954 Financial assets at fair value through profit and loss: - Term deposits 33,699,558 42,213,855 - -

Total financial assets 109,984,703 116,670,475 27,094,727 29,929,063 Financial liabilities Trade and other payables 3,300,366 3,390,834 1,598,803 1,524,657 Borrowings 22,017,834 24,074,296 22,017,835 24,074,296

Total financial liabilities 25,318,200 27,465,130 23,616,638 25,598,953

The Group has not restated comparatives when initially applying AASB 9, the comparative information has been prepared under AASB 139 Financial Instruments: Recognition and Measurement

The main purpose for non-derivative financial instruments is to raise finance for group operations.

The Group does not have any derivative financial instruments as at 30 June 2019 (2018: nil).

23 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 64

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

5. Financial Risk Management

Liquidity risk

The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.

The table below reflects the undiscounted contractual maturity analysis for financial liabilities.

Financial liability maturity analysis

Consolidated Within 1 Year 1 to 5 Years Over 5 Years Total 2019 2018 2019 2018 2019 2018 2019 2018 $ $ $ $ $ $ $ $

Financial liabilities Trade and other payables (3,300,366) (3,390,834) - - - - (3,300,366) (3,390,834) Borrowings (2,127,498) (2,056,461) (9,270,728) (8,961,180) (10,619,608) (13,056,655) (22,017,834) (24,074,296)

Total financial liabilities (5,427,864) (5,447,295) (9,270,728) (8,961,180) (10,619,608) (13,056,655) (25,318,200) (27,465,130)

Parent Within 1 Year 1 to 5 Years Over 5 Years Total 2019 2018 2019 2018 2019 2018 2019 2018 $ $ $ $ $ $ $ $

Financial liabilities Trade and other payables (1,598,803) (1,524,657) - - - - (1,598,803) (1,524,657) Borrowings (2,127,498) (2,056,461) (9,270,728) (8,961,180) (10,619,608) (13,056,655) (22,017,834) (24,074,296)

Total financial liabilities (3,726,301) (3,581,118) (9,270,728) (8,961,180) (10,619,608) (13,056,655) (23,616,637) (25,598,953)

The timing of expected outflows is not expected to be materially different from contracted cashflows.

Credit risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

The Group does not have any material credit risk exposure to any single receivable or group receivables under financial instruments entered into by the Group.

The average credit rating of the Scheme's reinsurance companies is 'A'. However, the Scheme's do recognise that there may be the likelihood of a reinsurance company failing to meet its obligations. A reinsurer default provision has been raised to cover this.

Market risk

The Group's main interest rate risk arises from financial assets at fair value through profit or loss and short term deposits with banks. Investments at variable rates expose the Scheme to cash flow interest rate risk. Investments at fixed rates expose the Scheme to fair value interest rate risk. All investments are held with Local Government Finance Authority. The Scheme has no formal policy in respect of the percentage of investments at fixed rates. Investments at fixed rates are made as and when opportunities arise.

24 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 65

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

5. Financial Risk Management

(i) Interest rate risk

The following table illustrates sensitivities to the Group's exposure to changes in interest rates. The table indicates the impact on how profit and equity values reporting at the end of the reporting period would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables.

Consolidated 2019 2018 +1.00% -1.00% +1.00% -1.00% $ $ $ $ Cash and cash equivalents 381,612 (381,612) 358,651 (358,651) Investment in term deposits 336,996 (336,996) 422,139 (422,139)

6. Fair value hierachy

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the assets that are recognised and measured in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has classified itsassets into three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.

Consolidated Level 2 Level 3 30 June 2019 $ $ Land and freehold buildings - 20,176,790 Term deposits 33,699,558 -

Consolidated Level 2 Level 3 30 June 2018 $ $ Land and freehold buildings - 20,648,390 Term deposits 42,213,852 -

25 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 66

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

6. Fair value hierachy Parent Level 2 Level 3 30 June 2019 $ $ Land and freehold buildings - 20,176,790 Unlisted Shares 2 -

Parent Level 2 Level 3 30 June 2018 $ $ Land and freehold buildings - 20,648,390 Unlisted Shares 2 -

There were no transfers between levels 1 and 2 for recurring fair value measurements during the year.

Level 2: The fair value of assets that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an asset are observable, the asset is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the asset is included in level 3.

Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include:

Term deposits - The fair value of term deposits is calculated as the present value of the estimated future cash flows based on observable government bond rate.

Land and Freehold Buildings - The Group's land and buildings were revalued at 31 March 2017 by independent valuers Maloney Field Services. Valuations were made on the basis of open market value. Movement during the year relates to depreciation on the building.

Unlisted shares - The value of unlisted shares have been recorded at the initial value at recognition.

26 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 67

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

7. Revenue Consolidated Parent 2019 2018 2019 2018 $ $ $ $ Member contributions - Gross earned contributions 47,909,845 49,720,455 - - - Rebate to members (15,968,901) (15,735,794) - -

Total member contributions 31,940,944 33,984,661 - -

Other revenue - Administrative charges 1,074,075 1,221,838 2,142,108 2,195,334 - Other revenue 3,401,773 3,492,577 2,743,934 2,656,508 - Rent and outgoings 664,735 745,404 996,129 1,158,272 - Procurement rebates 984,007 836,842 - - - Assets received free of charge - 668,000 - 668,000

Total other revenue 6,124,590 6,964,661 5,882,171 6,678,114

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates. All revenue is stated net of the amount of goods and services tax (GST).

Member contributions

Member contributions comprise amounts charged to members of the schemes for liability protection, net of amounts returned to members as bonuses. Member contribution revenue is recognised in the statement of profit or loss and other comprehensive income which is has been earned. The proportion of members' contribution received or receivable not earned is recognised in the statement of financial position as an unearned member contribution liability.

Member contributions are treated as earned from the date of attachment of risk. The pattern of recognition over the period of cover is based on time, which is considered to closely approximate the patter of risks underwritten.

Grants

Grants and project funding that were received on the condition that they be expended in a particular manner have been recognised as income when the Group gains control of the grant or the right to receive the grant. Grant monies outstanding at year end are detailed in the Project Reserve in the Statement of Changes in Equity. .

Subscriptions

Revenue from the provision of council subscriptions is recognised on a straight line basis over the financial year.

Other revenue

Other revenue comprises fees and charges received from Councils for services undertaken, rebate income from panel supplier contracts and property income from LG House. Revenue is recognised in the accounting period in which the services are rendered. For fixed price contracts, revenue is recognised based on the actual services provided to the end of the reporting period as a proportion of the total value of services to be provided.

Finance income

Interest is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

27 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 68

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

7. Revenue

Investment income is taken into account on an accrual basis and includes any changes in the net market value of investments during the financial year.

8. Grant expenditure

Outlined below are the projects where expenditure was incurred during the reporting period: Consolidated Parent 2019 2018 2019 2018 $ $ $ $ State Local Government Infrastructure Partnership - 24,047,296 - 24,047,296 Community Wastewater Management Scheme 5,359,174 2,001,000 5,359,174 2,001,000 Regional Youth Traineeship Program 639,724 1,019,470 639,724 1,019,470 LG Research and Development Scheme 1,667,055 1,389,022 1,667,055 1,389,022 Other grants 160,773 234,467 160,773 234,467

7,826,726 28,691,255 7,826,726 28,691,255

Grant expenditure includes project expenditure paid to Councils or other recipients to deliver programs or activities for the benefit of the South Australian local goverment sector. Expenses are recognised when the all obligations and conditions of the grant or subsidy agreement have been met.

28 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 69

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

9. Net claims expense

Direct Business

Current period claims relate to risk borne in the current financial year. Prior period amounts relate to a reassessment of the risk borne in all previous financial years

2019 Consolidated Current year Prior years Net $ $ $ Claims expense Claims and related expenses - undiscounted 17,665,140 (4,159,584) 13,505,556 Claims and related expenses - discounted (333,982) 1,167,703 833,721 Claims and related expenses - net 17,331,158 (2,991,881) 14,339,277 Reinsurance and other recoveries revenue Reinsurance and other recoveries revenue - undiscounted (4,718,328) 1,736,592 (2,981,736) Reinsurance and other recoveries revenue - discounted 195,530 (532,762) (337,232) Reinsurance and other recoveries - net (4,522,798) 1,203,830 (3,318,968)

Claims incurred net of recoveries 12,808,360 (1,788,051) 11,020,309

2018 Consolidated Current year Prior years Net $ $ $ Claims expense Claims and related expenses - undiscounted 15,240,489 (1,970,195) 13,270,294 Claims and related expenses - discounted (433,704) 193,420 (240,284) Claims and related expenses - net 14,806,785 (1,776,775) 13,030,010 Reinsurance and other recoveries revenue Reinsurance and other recoveries revenue - undiscounted (1,977,267) (557,193) (2,534,460) Reinsurance and other recoveries revenue - discounted 130,062 (134,375) (4,313) Reinsurance and other recoveries - net (1,847,205) (691,568) (2,538,773)

Claims incurred net of recoveries 12,959,580 (2,468,343) 10,491,237

Reinsurance and other recoveries revenue Reinsurance and other recoveries paid on claims, report claims not yet paid and IBNR (claims incurred but not yet reported) are recognised as revenue. Reinsurance recoveries receivable on outstanding claims liabilities are measured as the present value of the expected

29 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 70

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

9. Net claims expense future receipts calculated on a similar basis as the liability for outstanding claims. Other recoveries receivable are recognised when certainty exists as to recovery from a third party and are measured at the present value of the expected future receipts calculated on the same basis as the liability for outstanding claims. A provision for reinsurer default has been raised. The credit rating of the major current and historical reinsurance companies has been assessed. The actuary has assessed the appropriate provision based on the Australian and New Zealand cumulative default rates. Workers compensation claims Claims incurred expense and liability for outstanding claims are recognised in respect of direct claims by workers. The liability covers claims incurred but not yet paid, incurred but not yet reported claims and the anticipated costs of settling those claims. Claims outstanding are assessed by reviewing individual claim files and estimating unmodified claims and settlement costs using statistical and actuarial techniques. The liability for outstanding claims is measured as the present value of the expected future payments reflecting the fact that all the claims do not have to be paid out in the immediate future. The expected future payments are estimated on the basis of the ultimate cost of settling claims, which is affected by factors arising during the period to settlement such as normal inflation and 'superimposed inflation'.

Super imposed inflation refers to factors such as trends in court awards, for example increases in the level and period of compensation for injury. The expected future payments are then discounted to a present value at the report date using discount rates based on investment opportunities available to the organisation on the amounts of funds sufficient to meet claims as they became payable.

The following average inflation (normal and superimposed) rates and discount rates were used in measuring the liability for outstanding claims.

Actuarial advice indicates these rates to be 2019 2018 Wage inflation rate 3.65% 3.50% Superimposed inflation 2.00% 2.00% Discount rate 1.00% 2.00%

10. Cash and Cash Equivalents Consolidated Parent 2019 2018 2019 2018 $ $ $ $ Cash at bank and in hand 4,504,913 5,413,269 2,832,462 3,997,109 Short Term Deposits 33,655,723 30,451,864 - -

38,160,636 35,865,133 2,832,462 3,997,109

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Restricted cash

The cash and cash equivalents disclosed in the statement of cash flows include $6,075,708 (2018: $6,279,713) which are held for for project activities.

30 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 71

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

Reconciliation of result for the year to cashflows from operating activities

Consolidated Parent 2019 2018 2019 2018 $ $ $ $ (6,691,174) (1,441,214) (1,102,578) 960,411 Cash flows excluded from profit attributable to operating activities adjustments for: - depreciation 775,676 719,654 767,279 712,288 - net gain on disposal of property, plant and equipment - 2,273 - 2,273 - assets received free of charge - (668,000) - (668,000) - fair value movement in investments (net) (232,700) 305,324 - - Changes in assets and liabilities: - (increase)/decrease in trade and other receivables (829,434) (25,339,657) 1,669,691 (24,878,829) - (increase)/decrease in other assets - (363,635) - 10,803 - (increase)/decrease in prepayments 228,706 (124,271) (18,071) - - increase/(decrease) in trade and other payables (90,468) 1,305,482 74,146 1,481,636 - increase/(decrease) in outstanding claims and unearned contributions 3,069,446 2,880,604 - - - increase/(decrease) in provisions (1,369) 131,996 - 51,534 - increase/(decrease) in employee benefits - - (90,099) -

Cashflows from operations (3,771,317) (22,591,444) 1,300,368 (22,327,884)

11. Trade and other receivables Consolidated Parent 2019 2018 2019 2018 $ $ $ $ CURRENT Trade receivables 1,354,122 945,852 564,144 383,059 Accrued Income 2,707,131 2,026,823 1,680,287 1,484,600 State Local Govt Infra Partnership Receivable 2,127,498 2,046,461 2,127,498 2,046,461 Member contribution receivable 12,045,422 11,554,516 - -

Total current trade and other receivables 18,234,173 16,573,652 4,371,929 3,914,120

Consolidated Parent 2019 2018 2019 2018 $ $ $ $ NON-CURRENT State Local Govt Infra Partnership Receivable 19,890,336 22,017,835 19,890,336 22,017,835

Total non-current trade and other receivables 19,890,336 22,017,835 19,890,336 22,017,835

31 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 72

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

11. Trade and other receivables

Trade and other receivables

Trade receivables are amounts due from members services performed in the ordinary course of business. They are generally due for settlement within 30 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value.

The Group holds the trade receivables with the objective to collect the contractual cashflows and therefore measures them subsequently at amortised cost using the effective interest method.

All outstanding receivables are paid within the Group's normal trading terms.

Accrued income

Accrued income includes revenue earned for services undertaken but have not been invoiced. Accrued income also includes grant and contribution revenue not invoiced but is due to be paid to the Group in accordance with a pre- existing agreement or government legislation.

Impairment

The Group applies to simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and all days past due.The Group has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the other receivables.

The expected loss rates are based on the payment profiles of sales over a period of 36 months before 30 June 2019 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group expected net loss is nil (2018: nil). .

Loss allowance

Trade and other receivables are written off when there is no reasonable expectation of recovery.

Impairment losses on trade and other receivables and contract assets are presented as net impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

State Local Government Infrastructure Partnership (SLGIP) receivable

State Government grant payments being made to the Group to reimburse costs attributable to administration of the SGLIP program. The receivable is in accordance with the future receipts being received from the State Goverment as per the funding deed.

Member contribution receviable

Amounts due the LGAMLS and LGAWCS but not yet received from members for contributions for liability protection. Member contribution receivable is recognised at their fair values.

32 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 73

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

12. Financial Assets Consolidated Parent 2019 2018 2019 2018 Note $ $ $ $ CURRENT Term deposits 27,677,479 28,089,278 - -

Total current financial assets 27,677,479 28,089,278 - -

Consolidated Parent 2019 2018 2019 2018 $ $ $ $ NON-CURRENT Shares in controlled entities (at amortised cost) 2 2 2 2 Term deposits 6,022,077 14,124,575 - -

Total non-current financial assets 6,022,079 14,124,577 2 2

Term deposits are cash investments held with Local Government Financing Authority (LGFA) with maturity of more than three months. Investments are initially brought into account at cost and subsequently remeasured to fair value to market rates through the profit and loss.

13. Reinsurance recoveries and other receivables Consolidated Parent 2019 2018 2019 2018 CURRENT $ $ $ $ Reinsurance recoveries on paid claims 240,427 455,777 - - Reinsurance recoveries receivable 3,326,837 3,343,800 - - Discount to present value (125,573) (224,625) - - Reinsurer default provision (20,168) (19,651) - -

3,421,523 3,555,301 - -

Consolidated Parent 2019 2018 2019 2018 NON CURRENT $ $ $ $ Reinsurance recoveries on paid claims 11,305,229 9,897,856 - - Discount to present value (426,722) (664,903) - - Reinsurer default provision (68,534) (58,167) - -

10,809,973 9,174,786 - -

33 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 74

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

13. Reinsurance recoveries and other receivables Assets arising from reinsurance contracts were estimated for each accident year, from the payments to date an estimated outstanding claims history at 30 June 2019, taking into account the reinsurance terms applying to that accident year. In calculating the present value of reinsurance recoveries on the outstanding claims liability, allowance was made for an average recovery delay of three months, as assumed by the independent actuary. Although all relevant insurers are solvent a provision for failure of an insurer to pay has been raised. The reinsurer default provision is $88,702 (2018 $77,818) calculated at a rate of 0.63% (2018 0.63%) on the discounted value of the total reinsurance recoveries.

14. Property, plant and equipment

Freehold Furniture, land & Building Fixtures and Motor Other works buildings improvements Fittings Vehicles in progress Total Parent $ $ $ $ $ $

Year ended 30 June 2019 Opening net carrying amount 20,648,390 54,280 1,931,608 126,639 - 22,760,917 Additions - - 60,178 64,048 329,328 453,554 Disposals - - - (45,000) - (45,000) Depreciation expense (442,500) (29,100) (287,263) (8,417) - (767,280)

Closing net carrying amount 20,205,890 25,180 1,704,523 137,270 329,328 22,402,191

Freehold Furniture, land & Building Fixtures and Motor Other works buildings improvements Fittings Vehicles in progress Total Parent $ $ $ $ $ $

Year ended 30 June 2018 Opening net carrying amount 21,089,678 103,172 1,368,527 127,093 - 22,688,470 Additions - - 93,265 38,319 - 131,584 Contributions free of charge - - 668,000 - - 668,000 Disposals - - - (14,849) - (14,849) Depreciation (441,288) (48,892) (198,184) (23,924) - (712,288)

Closing net carrying amount 20,648,390 54,280 1,931,608 126,639 - 22,760,917

34 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 75

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

14. Property, plant and equipment Freehold Furniture, land & Building Fixtures and Motor Other works buildings improvements Fittings Vehicles in progress Total Consolidated $ $ $ $ $ $

Year ended 30 June 2019 Opening net carrying amount 20,648,390 54,280 1,931,608 165,459 - 22,799,737 Additions - - 70,341 64,049 329,328 463,718 Disposals - - - (45,000) - (45,000) Depreciation expense (442,500) (29,100) (288,293) (15,783) - (775,676)

Closing net carrying amount 20,205,890 25,180 1,713,656 168,725 329,328 22,442,779

Freehold Furniture, land & Building Fixtures and Motor Other works buildings improvements Fittings Vehicles in progress Total Consolidated $ $ $ $ $ $

Year ended 30 June 2018 Opening net carrying amount 21,089,678 103,173 1,368,527 173,279 - 22,734,657 Additions - - 761,265 38,319 - 799,584 Disposals - - - (14,849) - (14,849) Depreciation expense (441,288) (48,893) (198,184) (31,290) - (719,655)

Closing net carrying amount 20,648,390 54,280 1,931,608 165,459 - 22,799,737

Land and buildings are recognised at fair value based on periodic, but at least trienial valuations by external independent valuers, less subsequent depreciation for buildings. A revaluation surplus is credited to reserves in equity.

To the extent that an increase reverses a decrease previously recognised in the profit or loss, the increase is first recognised in the profit or loss. Decreases that reverse previous increases of the same asset are first recognised in other comprehensive income to the extent of the remaining surplus attributable to the asset, all other decreases are charged to the profit or loss.

Each year, the difference between depreciation based on the revaluated carrying amount of the asset charged to profit or loss and the depreciation based on the asset's original cost, is reclassified from the property, plant and equipment revaluation surplus to retained earnings.

All other property, plant and equipment is recognised at historical cost less depreciation.

Depreciation is calculated using a straight-line method to allocate cost or revalued amounts, net of their residual values, over their estimated useful lives, as follows:

Buildings 2.50 % Building improvements 10.00 % Furniture, fixtures and fittings 7.50 - 33.00 % Motor vehicles 25.00 %

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.

35 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 76

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

14. Property, plant and equipment

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

15. Trade and other payables Consolidated Parent 2019 2018 2019 2018 $ $ $ $ CURRENT Trade payables 107,555 915,721 107,555 816,445 GST payable 1,178,466 1,050,800 40,976 - Accrued expenses and other payables 2,014,345 1,424,313 1,450,272 708,212

3,300,366 3,390,834 1,598,803 1,524,657

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. These amounts are unsecured and are usually paid within 30 days of recognition.

The carrying amount of trade and other payables are considered to be the same as their fair values, due to their short term nature.

16. Employee benefits Consolidated Parent 2019 2018 2019 2018 $ $ $ $ CURRENT Long service leave 358,524 391,497 267,044 386,049 Annual leave 390,795 335,025 317,644 302,752

749,319 726,522 584,688 688,801

Consolidated Parent 2019 2018 2019 2018 $ $ $ $ NON-CURRENT Long service leave 111,465 135,631 105,978 91,964

111,465 135,631 105,978 91,964

Short term obligations Provision is made for the Group's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled plus related on costs. No liability for sick leave is recognised. The liabilities are presented has current employee benefit obligations in the balance sheet.

36 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 77

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. These amounts are unsecured and are usually paid within 30 days of recognition.

The carrying amount of trade and other payables are considered to be the same as their fair values, due to their short term nature.

Based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.The following amounts reflect leave that is not expected to be taken or paid within the next 12 months for the Group $339,764 (2018: $400,967) and the parent, LGA $258,752 (2018: $358,601).

Long term obligations A liability for employee long service leave is recognised and is measured as the present value of expected future payments to be made in respect of services provided by employees to the reporting date. Consideration is given to expected future wage and salary levels and period of service. Expected future payments are discounted using interest rates on national government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outflows. The obligations are presented as current liabilities in the balance sheet if the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected to occur.

17. Borrowings Consolidated Parent 2019 2018 2019 2018 $ $ $ $ CURRENT Other loans 2,127,498 2,056,461 2,127,498 2,056,461

Total current borrowings 2,127,498 2,056,461 2,127,498 2,056,461 Consolidated Parent 2019 2018 2019 2018 $ $ $ $ NON-CURRENT Unsecured liabilities: Other loans 19,890,336 22,017,835 19,890,336 22,017,835

Total non-current borrowings 19,890,336 22,017,835 19,890,336 22,017,835

Borrowings are recognised at fair value. Borrowings are reduced in the balance sheet when the obligation specified in the loan agreement is discharged.

18. Unearned Member Contribution Liability

2019 2018 $ $ Unearned members' contribution liability at 1 July 10,481,513 10,239,976 Members' contribution written in the year 32,456,330 34,226,198 Earning of members' contribution during the year (32,002,992) (33,984,661)

Total unearned member contribution 10,934,851 10,481,513

37 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 78

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

Amounts paid by members for liability protection but not yet earned. Member contribution receivables is recognised as earned from the date of attachment of risk. The pattern of recognied over the period of year is based on time, which is considered to closely approximate the pattern of risks underwritten.

A liability of $10,934,851 (2018: $10,481,513) for contributions billed in advance has been recognised. These amounts offset equivalent amounts in contributions owing.

19. Outstanding Claims Liability Consolidated Parent 2019 2018 2019 2018 $ $ $ $

Central Estimate (A) 36,434,277 34,445,244 - - Discount to present value (1,020,541) (1,854,262) - -

35,413,736 32,590,982 - -

Claims handling cost (B) 273,061 620,082 - -

35,686,797 33,211,064 - -

Risk margin (C) 4,477,898 4,337,523 - -

Gross outstanding claims liability 40,164,695 37,548,587 - -

Gross claims incurred (A + B + C) 41,185,236 39,402,849 - - Current 16,974,052 16,391,035 - - Non-current 23,190,643 21,157,552 - -

40,164,695 37,548,587 - -

Outstanding claims

A provision of $40,164,695 (2018: $37,548,587) has been made for the estimated cost of claims notified but not settled at year end for the cost of claims incurred by year end but not reported until after that date. This amount has been based on a methodology by consulting actuaries which incorporates the claims history of the scheme's prior year of operation.

Risk Margin

The risk margin is an additional allowance for uncertainty in the ultimate cost of claims. The Board determines the overall margin adopted after considering the uncertainty in the portfolio, industry trends and the Scheme's risk appreciation.

To determine the margin adopted by the Actuary concluded that a risk margin % of net outstanding claims as outlined below would be reasonable, if the Scheme was to have approximately 75% probability of its claim provision proving reliable.

The risk margin is added to the central estimate of net outstanding claims liability reduced by the appropriate reinsurance recoveries provided.

38 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 79

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

Risk margin applied

The risk margins applied for 75% level are adequacy are as follows 2019 2018 LGAMLS 25.00% 25.00% LGAWCS 20.00% 20.00%

Reconciliation of movement in discounted outstanding claims liability

Gross Recoveries Net Total 2019 2018 2019 2018 2019 2018 2019 2018 $ $ $ $ $ $ $ $ Balance at 1 July 37,548,585 34,909,518 (12,730,087) (11,907,021) 24,818,498 23,002,497 49,636,996 46,004,994 Current year claims incurred 17,131,161 14,806,784 - (1,847,205) - 12,959,577 17,131,161 25,919,156 Previous years claims incurred (2,991,881) (1,776,775) - (691,568) - (2,468,343) (2,991,881) (4,936,686)

Incurred claims in income statement 14,139,280 13,030,009 - (2,538,773) - 10,491,234 14,139,280 20,982,470 All claims paid during the year (11,523,170) (10,390,940) - 1,715,707 - (8,675,233) (11,523,170) (17,350,466)

Balance at 30 June 40,164,695 37,548,587 (12,730,087) (12,730,087) 24,818,498 24,818,498 52,253,106 49,636,998

20. Reserves

Asset revaluation reserve

The asset revaluation reserve records fair value movements on property, plant and equipment held under the revaluation model.

Project reserves

The project reserve records funds received by the Local Government Association of South Australia from external providers. These funds are then distributed as per the relevant funding agreements. Also included within the reserve are LGA funded projects with carry forward balances.

Risk incentive reserve

The risk inventive reserve comprises accumulated retained earnings from the schemes which are set aside to support councils' risk mitigation projects.

21. Liability Adequacy Test

The liability adequacy tests conducted by the independent actuary has identified a surplus.

LGAMLS

The liability adequacy test identified the central estimate of the present value of future cash flows for future claims to be $4,311,000 (2018: $4,002,000) with an additional component of present value of expected future cash flows in relation to risk margin, net of reinsurance, to be $27,000 (2018: $25,000).

In performing this test a risk margin of 25% (2018 25%) was used to secure a 75% (2018 75%) probability of adequacy.

The probability of adequacy for the outstanding claims liability is set at a level that is appropriate and sustainable to

39 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 80

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

21. Liability Adequacy Test cover the Scheme’s claims obligations after having regard to the prevailing market environment and prudent industry practice.

LGAWLS

The liability adequacy test identified the central estimate of the present value of future cash flows for future claims to be $12,387,000 (2018: $10,475,000) with an additional component of present value of expected future cash flows in relation to risk margin to be $2,065,000 (2018: $2,157,000).

In performing this test a risk margin of 20% was used to secure a 75% (2018 75%) probability of adequacy.

The probability of adequacy for the outstanding claims liability is set at a level that is appropriate and sustainable to cover the Scheme’s claims obligations after having regard to the prevailing market environment and prudent industry practice.

22. Contingencies

In the opinion of Board, the Association did not have any contingencies at 30 June 2019 (30 June 2018:None).

23. Interests in Subsidiaries Principal place of business / Country of Percentage Percentage Incorporation Owned (%)* Owned (%)* 2019 2018 Subsidiaries: Local Government Mutual Liability Scheme (1) Australia - - Local Government Workers Compensation Scheme (1) Australia - - LGCS Pty Ltd (Trustee for LGCS Trust No.1) trading as LGA Procurement Australia 100 100 LGASA Mutual Pty Ltd Australia 100 100

*The percentage of ownership interest held is equivalent to the percentage voting rights for all subsidiaries.

(1) The Local Government Association of South Australia has the capacity to control the Mutual Liability Scheme and Workers Compensation Scheme pursuant to the Local Government Act 1999 and they have been consolidated on that basis.

40 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 81

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

24. Key Management Personnel Remuneration

Key management personnel who have responsibility for the strategic direction and management of the Group include members of the Board and Chief Executive Officers. Total remuneration included within employee expenses for the year is shown below: 2019 2018 $ $ Short-term employee benefits 725,297 507,149 Long-term benefits 21,639 9,887 Post-employment benefits 61,164 33,633

808,100 550,669

In 2019 remuneration includes LGASA Mutual Pty Ltd and changes to LGA and LGA Procurement remuneration.

Transaction with key management personnel and other related parties

Related parties of Group include all key management personnel and their close family members and any entity that is controlled by those persons. Close family members are defined in AASB 124 Related party disclosures to include children, spouse or partner, children of the spouse or partner and dependants of the key management personnel and their spouse or partner.

There are no transactions to disclose for key management personnel and related parties.

The Group transact with Councils and State Government Agencies of which Board members may be key management personnel on terms which are consistent with the Group's normal commercial arrangements as disclosed in Note 25.

25. Related Parties

Key management personnel - refer to Note 24.

Other related parties include close family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel or their close family members.

The following entities are considered related parties:

 Local Government Finance Authority

 SA Government Financing Authority

41 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 82

Local Government Association of South Australia

Notes to the Financial Statements For the Year Ended 30 June 2019

25. Related Parties Loans to/from related parties

Unsecured loans are made to/from related parties on an arm's length basis. Repayment and interest terms are set for each loan and the loans are unsecured and repayable in cash. Interest income/ Interest receivable/ Opening balance Closing balance (expense) (payable) $ $ $ $ Loans from related parties 2019 (24,074,296) (22,017,835) (786,655) (347,891) 2018 - (24,074,296) (383,299) (380,384)

Loans to related parties 2019 69,714,856 74,048,253 2,028,100 887,044 2018 72,278,554 69,714,856 2,037,035 401,488

26. Events after the end of the Reporting Period

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

27. Statutory Information

The registered office and principal place of business of the association is: Local Government Association of South Australia Local Government House 148 Frome Street ADELAIDE SA 5000

42 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 83

Local Government Association of South Australia

Statement by Members of the Board

In the opinion of the Board the financial report as set out on pages 4 to 42:

1. Present fairly the results of the operations of Local Government Association of South Australia as at 30 June 2019 and its state of affairs for the year ended on that date in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) of the Australian Accounting Standards Board.

2. At the date of this statement, there are reasonable grounds to believe that Local Government Association of South Australia will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the committee and is signed for and on behalf of the committee by:

President ...... Chief Executive Officer......

27 Dated this ...... day of ...... 2019September

43 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 84

Independent auditor’s report To the members of Local Government Association of South Australia

Our opinion In our opinion: The accompanying financial report of Local Government Association of South Australia (the Parent) and its controlled entities (together the Group) presents fairly, in all material respects, including: (a) giving a true and fair view of the Parents's and Group's financial positions as at 30 June 2019 and of their financial performance for the year then ended (b) complying with Australian Accounting Standards and the Associations Incorporation Act 1985.

What we have audited The Parent and Group financial report comprises: • the Consolidated and Parent statements of financial position as at 30 June 2019 • the Consolidated and Parent statements of changes in equity for the year then ended • the Consolidated and Parent statements of cash flows for the year then ended • the Consolidated and Parent statements of profit or loss and other comprehensive income for the year then ended • the notes to the financial statements, which include a summary of significant accounting policies • the statement of the Members of the Board.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence We are independent of the Association and the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Other information The Members of the Board are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

PricewaterhouseCoopers, ABN 52 780 433 757 Level 11, 70 Franklin Street, ADELAIDE SA 5000, GPO Box 418, ADELAIDE SA 5001 T: +61 8 8218 7000, F: +61 8 8218 7999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 85

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Members of the Board for the financial report The Members of the Board of the Association are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Associations Incorporation Act 1985 and for such internal control as the Members of the Board determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Members of the Board are responsible for assessing the ability of the Parent and the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Members of the Board either intends to liquidate the Parent or the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar3.pdf. This description forms part of our auditor's report.

PricewaterhouseCoopers

M. T. Lojszczyk Adelaide Partner 27 September 2019 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 86

6.3 Annual Reports of LGA Committees

LGA Business From: Lisa Teburea, Executive Director Public Affairs Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3C Improve LGA governance and operations with a focus on people, finances and our members Meeting: Annual General Meeting 31 October 2019 ECM: 688829 Attachments: 686206, 686797, 687102 & 688970

Recommendation That the Annual General Meeting notes the Annual Reports for the year 2018-2019 of the following Committees established under the LGA Constitution: a) Greater Adelaide Region Organisation of Councils (GAROC) b) South Australian Region Organisation of Councils (SAROC) c) CEO Advisory Group d) Audit and Risk Committee

Discussion Two Regional Organisations of Councils are established under Clause 19 of the LGA Constitution, being SAROC and GAROC. The role of SAROC and GAROC is regional advocacy, policy initiation and review, leadership, engagement and capacity building in the regions. Under their Terms of Reference SAROC and GAROC are required to adopt a four-year Strategic Plan, Annual Business Plan and Budget, and prepare an Annual Report each year outlining the activities undertaken in the previous financial year. The 2018-2019 Annual Reports of SAROC and GAROC were received by the LGA Board of Directors at their meeting in September 2019 and are provided as an attachment to this report for noting by LGA member councils. A verbal update will be provided to the meeting on the activities of SAROC and GAROC by the respective Chairs, Mayor Erika Vickery (Naracoorte Lucindale Council) and Mayor Karen Redman (Town of Gawler). The LGA Board of Directors has also established an Audit and Risk Committee and a CEO Advisory Group in accordance with the requirements of the LGA Constitution. A summary report on the activities of each if these committees in 2018/19 is attached to this report.

Financial and Resource Implications The LGA Secretariat provides executive and administrative support to the Committees established under the LGA Constitution. This activity has been anticipated in the LGA’s work program and resources are available to progress this work.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 87

2018-2019 GAROC Annual Report

Submission / Proposal /

August 2019

LGA of SA ECM XXXXX < File Name > Page 1 of 10

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1. From the Chair ...... 3 2. Introduction ...... 4 3. GAROC activities during the 2018 -19 financial year ...... 5 3.1 Establishing the GAROC committee ...... 5 3.2 Finalising Metropolitan Local Government Group (MLGG) projects ...... 6 3.3 Other activities ...... 7 3.4 Items of Business Referred to the Board of Directors or a General Meeting ...... 8 3.5 Regionalisation of GAROC ...... 8 4. Details of meetings ...... 9

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1. From the Chair 2018-19 was a year of transition from the former Metropolitan Local Government Group (MLGG) to the new Greater Adelaide Region Organisation of Councils (GAROC) committee. I would like to thank the former members of the MLGG for their hard work and dedication on the committee and to local government in South Australia. In this ‘start-up’ year, GAROC has worked to understand how it can deliver on its Terms of Reference and has put in place its first four-year Strategic Plan (2019-2023), Annual Business Plan and Budget (2019-20). Developing these key documents has involved consultation with the metropolitan councils, and a number of workshops including one with our regional colleagues from the South Australian Region Organisation of Councils (SAROC) committee. I would like to thank all committee members and councils for their valuable input. GAROC has hit the ground running in its advocacy role, in particular with regard to the strong recommendations in our Heritage Position Paper that has been presented to the State Government. I am also proud of the Going Smart. Smart Cities Framework for Metropolitan Adelaide framework, which was launched in May 2019 and has been well received by metropolitan councils. GAROC will work hard to influence outcomes on issues that are common across the metropolitan region. We aim to be responsive to councils’ needs, and to always be community focused in our decision making. I look forward to working with metropolitan councils and the LGA in implementing our plans over the coming years.

Mayor Karen Redman Chair GAROC committee

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2. Introduction The Greater Adelaide Region Organisation of Councils (GAROC) is a committee of the LGA, established under its Constitution.

GAROC plays a key role in regional advocacy, policy initiation and review, leadership, engagement and capacity building on behalf of the 19 member councils within the metropolitan region.

As outlined under its Terms of Reference, GAROC supports the LGA to ‘advocate, assist, and advance’ the interests of local government by:

1. Supporting the activities of the LGA at a regional level; 2. Promoting communication between Members and between Members and the LGA; 3. Advocating in respect of matters which affect the GAROC Regional Group; 4. Encouraging engagement of Members within the GAROC Regional Group with GAROC and the LGASA; and 5. Participating in policy development and implementation.

Clause 9.10.3 of the GAROC Terms of Reference requires that:

‘GAROC will provide an annual report to the Board of Directors by September each year summarising:

(a) the discharge of GAROC’s responsibilities and functions under these Terms of Reference and against the strategic plan and annual business plan; (b) the activities of GAROC during the financial year; (c) items of business referred to the Board of Directors or a General Meeting during the financial year; and (d) items being considered by GAROC which have not been reported to the Board of Directors and the intended actions in respect of those matters.’

This Annual Report provides a summary of GAROC’s activities from its establishment in October 2018 to 30 June 2019.

Vision

For every South Australian to have the best local government experience

Mission

To provide advocacy, policy initiation and review, leadership, engagement and capacity building in collaboration with the LGA for the benefit of metropolitan South Australian councils and their communities.

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3. GAROC activities during the 2018 -19 financial year

3.1 Establishing the GAROC committee Clause 19 of the new LGA Constitution, adopted by LGA member councils at the April 2018 Ordinary General Meeting, saw the creation of GAROC. Establishing and embedding the foundations of how GAROC will function was viewed as an important objective during this critical formation phase to enable GAROC to successfully achieve its Mission to: “provide advocacy, policy initiation and review, leadership, engagement and capacity building in collaboration with the LGA for the benefit of metropolitan South Australian councils and their communities.” While GAROC was in the “start-up” phase particular emphasis was placed on developing a robust and articulate framework for the committee’s structure, purpose, how it intends to achieve and deliver on its identified priorities and its consultation framework for its members. Three central documents creating and explaining how GAROC will achieve its objectives were developed. These are the Terms of Reference, the 2019-2023 Strategic Plan, and the 2019-20 Annual Business Plan.

GAROC’s terms of reference The GAROC Terms of Reference were adopted by the LGA Board of Directors on 13 September 2018 and member councils at the LGA Annual General Meeting AGM held 26 October 2018. The Terms of Reference provide a transparent working framework for GAROC that facilitates good governance by clearly establishing its purpose, functions, relationships between all stakeholders and enables high level evaluation and benchmarking requirements. These Terms of Reference provide a requirement that GAROC review and update a four-year Strategic Plan and an Annual Business Plan for the next financial year, to be developed through consultation with member councils in its region.

GAROC 2019-2023 Strategic Plan, GAROC 2019-20 Annual Business Plan and Budget GAROC’s four-year Strategic Plan provides a clear understanding of the committee’s purpose and how it intends to achieve and deliver on its identified priorities, including engagement with member councils. This plan was developed in consultation with members in the metropolitan area and was endorsed by the LGA Board of Directors at their meeting on 20 June 2019. The Strategic Plan identifies the following three strategic themes and objectives that GAROC will strive to deliver on over the next four years; 1. Built & Natural Environment and Planning 2. Economic Development and Jobs 3. Best practice & continuous improvement The Annual Business Plan identifies the key actions GAROC will undertake in 2019/20 to address the themes and objectives in the Strategic Plan. This Business Plan is supported by an Annual Budget to provide appropriate resources for the proposed activities to be undertaken during the financial year. GAROC’s performance will be assessed quarterly against the Annual Business Plan.

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Appointment of Members to the LGA Board of Directors The Membership of the LGA Board of Directors is comprised on the President, Immediate Past President, the Chairs of SAROC and GAROC, and three additional members appointed by SAROC and GAROC. The LGA Board of Directors appointed by GAROC include:  Mayor Karen Redman (Chair)  Mayor Gillian Aldridge (Office of the Immediate Past President)  Mayor Kevin Knight  Mayor David O’Loughlin  Mayor Jan Claire Wisdom

3.2 Finalising Metropolitan Local Government Group (MLGG) projects

GAROC agreed to continue with the following projects initiated by the former MLGG and endorsed the completion of these activities being incorporated within the 2019-20 GAROC Annual Business Plan.

Smart Cities GAROC endorsed the Going Smart. Smart Cities Framework for Metropolitan Adelaide, which was subsequently launched on 29 May 2019 at a Metropolitan Local Government Smart Cities Network event. GAROC promoted this framework to all metropolitan mayors and provided them with a snapshot of the Smart Cities priorities identified across metropolitan councils. This framework is the first of its kind in Australia, and will help councils utilise data and technology to increase their efficiency and effectiveness, improve local amenity and community wellbeing and drive downward pressure on rates.

Essential Services Reinstatement This project seeks to liaise with member councils and essential service providers to establish an agreed policy on reinstating public infrastructure to the satisfaction of councils after completion of works and remediation improvements. A road reinstatement working group has been established to inform the project. The LGA Secretariat will continue to work with member councils to prepare a policy and partnership agreement and determine whether legislative change should be advocated for.

Innovation and investment in Commercial Activities GAROC will continue to oversee consideration of The City of Adelaide’s Notice of Motion to the April 2017 LGA Ordinary General Meeting for the LGA “to explore local, national and international business models used by the local government sector to manage commercial operations and explore any current legislative barriers or opportunities that would enable greater innovation and investment in commercial activities, in order to offset the cost of council services for our community.” The LGA has surveyed member councils and undertaken research into local, national and international business models used by the local government sector to manage commercial operations. This work is also exploring any current legislative barriers or opportunities that would enable greater innovation and investment in commercial activities, in order to offset the cost of council services for the community.

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3.3 Other activities

Local Heritage Listing Policy and Procedure At the April 2018 LGA OGM, The City of Adelaide successfully moved a motion requesting the LGA to work with local government “to develop consistent policy and procedure to identify and protect their historic building stock.” GAROC supported and funded the LGA Secretariat to engage a consultant to conduct an overview of the historical processes involved in classifying Contributory Items; and prepare the draft LGA Heritage Position Paper. GAROC endorsed a Heritage Position Paper and recommendations: a) that current heritage classifications and protections including Historic Conservation Zones/Policy Areas and Contributory Items be transitioned in their current form into Generation 1 of the new planning system; b) that the State Government implement, in consultation with local government, the recommendations of the final report of the Environment, Resources and Development Committee’s Heritage Inquiry; and c) that the State Planning Commission engages with local government on the detail of the Planning and Design Code as it relates to heritage and character and, in particular, demolition control. Subsequently, the LGA President provided a copy of the Heritage Position Paper to the Minister for Planning, the Shadow Minister for Planning, and the Chair of the State Planning Commission.

Climate Change At their request, GAROC received a report on Managing the Risks of Climate Change to Local Government – an LGA action statement; and noted that the LGA will be engaging with member councils on climate change priorities. GAROC resolved to host a member forum as part of the engagement process.

Waste and Recycling GAROC considered the impact of increases to the Solid Waste Levy on metropolitan councils, the LGA’s Waste Action plan, and the need for further activities to be undertaken to provide further support to councils with waste and recycling. The Committee resolved to provide up to $10,000 to support the LGA’s awareness strategy of the State Government’s Solid Waste Levy.

2019-20 Special Local Road Program GAROC considered the Metropolitan Strategic Roads Committee’s recommendations to the Local Government Transport Advisory Panel for 2019-20 Special Local Roads Program (SLRP) funding. The LGA’s Local Government Transport Advisory Panel (LGTAP) is established to consider submissions for strategic road funding under the SLRP. Each year, LGTAP calls for submissions for SLRP funding from South Australian councils. Applications are received via the Regional LGAs (Eyre Peninsula, Legatus, Limestone Coast, and , Southern and Hills and ) and the GAROC’s Metropolitan Strategic Roads Committee (MSRC).

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3.4 Items of Business Referred to the Board of Directors or a General Meeting The following Items of Business submitted by member councils were considered by GAROC for consideration at the Ordinary General Meeting in April 2019:  Wine Bottle Container Deposit (City of Unley)  Social Infrastructure (City of Adelaide)  Movement and Transport Planning (City of Adelaide)  Hardship Policy for Council Rates (City of Playford) Motions on these issues were carried at the OGM and are currently being progressed by the LGA.

3.5 Regionalisation of GAROC The LGA Constitution and the GAROC Terms of Reference envisage member councils being organised into regional groups for the purposes of electing representatives to GAROC. GAROC has progressed further consultations with metropolitan councils to seek feedback. At a workshop on 1 July 2019 member councils agreed on regional groupings to be recommended to the LGA Annual General Meeting in October 2019.

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4. Details of meetings During the 2018-19 financial year a total of four committee meetings were held on the following dates:  26 October 2018 (special)  4 March 2019  6 May 2019  3 June 2019 (special) In addition to the Committee meetings, GAROC  held a joint workshop with SAROC on 19 December 2018 to consider the operations of SAROC and GAROC, including strategic directions, engagement with councils and leadership;  dealt with some issues via circular resolution on 1 April and 16 April 2019; and  held a further workshop with metropolitan councils on 1 July to consider regionalisation of GAROC. GAROC Committee member attendance at meetings (not including workshops) during the year was: Member Number of meeting eligible Number of meetings to attend attended Mayor Karen Redman, Chair 4 4 Mayor Gillian Aldridge 4 3 Mayor Angela Evans 2 2 Lord Mayor Sandy Verschoor 3 2 Mayor Kevin Knight 4 4 Cr Christel Mex 4 3 Mayor David O'Loughlin 4 3 Cr Tim Pfeiffer 2 2 Mayor Jan-Claire Wisdom 4 3

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2018-2019 SAROC Annual Report

Draft Submission / Proposal /

September 2019

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Table of contents

1. From the Chair ...... 3 2. Introduction ...... 4 3. The activities of SAROC during the financial year ...... 4 3.1 SAROC four-year Strategic Plan, Annual Business Plan and Budget ...... 4 3.2 Appointment of Members to the LGA Board of Directors ...... 5 3.3 Rating Equity for Commercial and/or Industrial Land Uses Outside Towns in South Australia ...... 5 3.4 Socio – economic impacts from the NDIS on regional local governments ...... 6 3.5 Items of Business Referred to the Board of Directors or a General Meeting during the Financial Year ...... 6 3.6 Items being considered by SAROC which have not been reported to the Board of Directors and the intended actions in respect of those matters ...... 6 4. Details of meetings ...... 7 5. Future work program ...... 8

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1. From the Chair

2018-19 has seen significant changes to the operations and membership of SAROC. I would like to thank the former members of SAROC for their hard work and dedication on the committee and to regional South Australia. In October 2018 the Annual General Meeting of LGA member adopted a new LGA Constitution and a new Terms of Reference for SAROC. The Terms of Reference required that SAROC develop a four- year Strategic Plan, Annual Business Plan and Budget. The SAROC members have focussed on developing these key documents, which has included a number of workshops, including one with our colleagues from GAROC and consultation with regional councils. I am pleased to report that the Strategic Plan 2019-23 and Annual Business Plan and Budget for 2019- 20 were adopted by the Board of Directors at its meeting in June 2019. I look forward to working with the LGA, regional LGAs and regional councils in implementing these plans and provided advocacy, support and leadership for regional South Australia.

Mayor Erika Vickery OAM Chair SAROC Committee

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2. Introduction

The South Australian Region Organisation of Councils (SAROC) is formally established through the LGA’s Constitution. SAROC plays an important role working with and on behalf of regional councils in advocacy, policy initiation and review, leadership engagement and capacity building in the regions. SAROC, as a committee of the LGA, is responsible to the Board of Directors for the discharge of its functions. Under its Terms of Reference, SAROC will assist in the achievement of the LGA’s objects by: (a) supporting the activities of the LGA at a regional level; (b) promoting communication between Members and between Members and the LGA; (c) advocating in respect of matters which affect the SAROC Regional Group; (d) encouraging engagement of Members within the SAROC Regional Group with SAROC and the LGA; and (e) participating in policy development and implementation. In addition to the above SAROC is required by September each to provide a report to the LGA Board of Directors summarising its activities during the previous financial year. The report is a requirement of the Committee’s Terms of Reference which were adopted by the LGA Board on 13 September 2018 and Members at the AGM held 26 October 2018. The Terms of Reference (clause 9.10.3) requires that the annual report provide a summary of the following: (a) the discharge of SAROC’s responsibilities and functions under these Terms of Reference and against the strategic plan and annual business plan; (b) the activities of SAROC during the financial year; (c) items of business referred to the Board of Directors or a General Meeting during the financial year; and (d) items being considered by SAROC which have not been reported to the Board of Directors and the intended actions in respect of those matters.

This Annual Report provides a summary of SAROC’s activities from its establishment in October 2018 to 30 June 2019. 3. The activities of SAROC during the financial year

Matters considered by SAROC during the year are summarised below

3.1 SAROC four-year Strategic Plan, Annual Business Plan and Budget A significant item of business undertaken by SAROC has been the preparation of SAROC’s inaugural four-year Strategic Plan, Annual Business Plan and Budget. The development of these key documents involved multiple workshops (including a joint workshop with GAROC) and consultation with the councils within the SAROC region. The four-year Strategic Plan, Annual Business Plan and Budget for 2019-20 were considered and adopted by the Board of Directors in June 2019.

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SAROC’s 2019-2023 Strategic Plan identifies four themes that it will progress on behalf of regional councils. i. Economic Development Enable advocacy and partnership opportunities that recognise the specific needs of the regions and support councils to drive sustainable economic development. ii. Community Development Support strong, vibrant and cohesive regional communities through advocacy and partnerships that unlock local government’s potential to deliver quality community services and meaningful outcomes in public health and wellbeing. iii. Natural and Built Environment Influence, inform and advocate for the State Government to address policy and legislative barriers that hinder councils from undertaking their roles in maintaining and enhancing the natural and built environment in regional South Australia. iv. Financial Sustainability and Governance Advocate to maximise contributions and investment from other tiers of government to contribute toward local government financial sustainability, and to assist councils to identify opportunities to support and strengthen governance arrangements. SAROC recognises that to achieve these objectives it will need to work in close collaboration with Regional LGAs and regional councils, along with key stakeholders including the State and Federal Government, and Regional Development South Australia’s RDAs.

3.2 Appointment of Members to the LGA Board of Directors The Membership of the LGA Board of Directors is comprised on the President, Immediate Past President, the Chairs of SAROC and GAROC, and three additional members appointed by SAROC and GAROC. The LGA Board of Directors appointed by SAROC include: Mayor Erika Vickery OAM (Chair) Mayor Keith Parkes Mayor Peter Mattey OAM Mayor Clare McLaughlin (appointed in December 2018 following a casual vacancy)

3.3 Rating Equity for Commercial and/or Industrial Land Uses Outside Towns in South Australia SAROC received a report on ‘Rating Equity for Commercial and/or Industrial Land Uses Outside Towns in South Australia’ and noted the key findings. The Committee requested that the Regional LGA Executive Officers work with the LGA Secretariat to distribute the report and to approach all member councils to inform future recommendation to the LGA Board to assist with removing rating constraints.

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3.4 Socio – economic impacts from the NDIS on regional local governments SAROC noted that the Regional LGA Executive Officers, with the assistance of the LGA Secretariat, will progress the recommendation in the report Socio – economic impacts from the NDIS on regional local governments and that Regional Organisations of Councils encourage and assist members to collaborate in the delivery of the activities. SAROC also noted that the LGA Board received this report and will consider the implications for all South Australian councils in conjunction with the “NDIS impact of Metropolitan local governments” research project. SAROC has also identified that regional councils are facing challenges due to delays in the rollout of the NDIS and have requested that information be provided by Regional Development SA and the NDIA about the impacts on regions.

3.5 Items of Business Referred to the Board of Directors or a General Meeting during the Financial Year 1) SAROC recommended that the LGA Board support an addition to the LGA 2018/19 State Budget Submission to seek increased funding for regional health services. This recommendation was accepted by the Board of Directors. 2) The following Items of Business submitted by Member Councils were considered by SAROC for consideration at the Ordinary General Meeting in April 2019: 1) State of Climate Change Emergency 2) Jetties 3) Local Government Leadership in Climate Risk Management 4) Lack of Medical Services to Regional Areas 5) Little Corella Management 6) Funding for Regional Road Safety 7) Regional Economic Growth and Development

3.6 Items being considered by SAROC which have not been reported to the Board of Directors and the intended actions in respect of those matters 1) Regional Road Funding – An item of business proposed by a regional council did not proceed to the Ordinary General Meeting on the basis that the LGA is focused on achieving effective outcomes through sector-wide advocacy on road funding with partnership opportunities between local, state and federal governments. The matter was referred to the council for further action at the local or regional level.

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4. Details of meetings

During the 2018-19 financial year a total of 5 Committee meetings were held on the following dates:  July 18 2018  September 12 2018  October 26 2018 (Special)  December 19 2019 (Special)  March 6 2019  May 16 2019 In addition to the Committee meetings, SAROC held a joint workshop with GAROC on 19 December 2018 to consider the operations of SAROC and GAROC, including strategic directions, engagement with councils and leadership. SAROC held a further workshop to develop its draft four-year Strategic Plan and one year Business Plan on 1 February. SAROC Committee member attendance at meetings (not including workshops) during the year was:

Member Number of meeting eligible Number of meetings to attend attended Mayor Erika Vickery OAM Chair 6 6 Mayor Dave Burgess 6 6 Mayor Peter Hunt 6 6 Mayor Dean Johnson 6 5 Mayor Peter Mattey OAM 6 6 Mayor Clare McLaughlin 3 2 Mayor Bill O’Brien 3 3 Mayor Keith Parkes 6 5 Mayor Glen Rowlands 6 3 Mayor Richard Sage 6 5 Mayor Leon Stephen 3 2 Mayor Sam Telfer 6 6

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5. Future work program

During 2019-20 the SAROC Committee will monitor the implementation of the actions contained in its Annual Business Plan.

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2018-2019 CEO Advisory Group Annual Report

September 2019

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Table of contents

From the Chair ...... 3 Introduction ...... 3 CEO Advisory Group activities during the 2018 – 19 financial year ...... 4 Establishing the CEO Advisory Committee ...... 4 Workshop with the LGA Board ...... 4 Local Government Reform...... 5 Community Awareness Presentation ...... 5 Details of meetings ...... 5

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From the Chair

It has been a pleasure serving as Chair of the inaugural LGA CEO Advisory Group, which is a new committee formed in November 2018. The Group has worked with the LGA Board of Directors to determine what a successful first term of the CEO Advisory Group would look like, the priorities the Group would focus on and how the LGA Board and the Group would communicate effectively and manage the required resources. Together, the LGA Board of Directors and CEO Advisory Group determined that the priorities of the Group would be to provide advice to the Board and the LGA Secretariat to assist with progressing the following initiatives:  Sector-wide Performance Measurement and Reporting  Local Government Reform  Industrial Relations Reform  Continued improvement of LGA Procurement; and  Enhancing the reputation of the sector I would like to thank the members of the Group for their contributions to these discussions so far. I am looking forward to working with the LGA Board for the remainder of the current term to continue to help shape and improve the development and delivery of LGA services. Adrian Skull Chair Introduction

The CEO Advisory Group is a committee of the LGA established under its Constitution. As outlined in the Terms of Reference, the CEO Advisory Group will provide advice to the LGA Board on the design and delivery of policy and services to its members and will consider:  the value and validity of services offered by the LGA to members;  proposals for the further development of existing or new services by the LGA; and  the effectiveness of operational policies adopted by the LGA in connection with member services. Clause 7.8 of the Terms of Reference determines that: The CEO Advisory group will provide a written report to the Board of Directors after each CEO Advisory Group meeting providing an update on any matters being considered by the group. The CEO Advisory Group will provide an annual report to the Board of Directors by 1 September each year summarising: a) the discharge of the CEO Advisory Group’s responsibilities and function under these Terms of Reference; b) the activities of the CEO Advisory Group during the previous financial year; c) the issues referred to the Board of Directors during the previous financial year and whether or not each issue was resolved or addressed; and

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d) issues being considered by the CEO Advisory Group which have not been reported to the Board of Directors and the intended actions in respect of those matters. CEO Advisory Group activities during the 2018 – 19 financial year Establishing the CEO Advisory Committee Clause 24.3.2 of the new LGA Constitution, adopted by LGA member councils at the April 2018 Ordinary General Meeting, saw the creation of the CEO Advisory Group. In November 2018 nominations from interested council CEOs were called, with membership to include:

 4 Chief Executive Officers of Members within the SAROC Regional Groups of Members, with no more than one coming from the same regional grouping; and

 4 Chief Executive Officers of Members within GAROC Regional Groupings of Members, with no more than one coming from the same regional grouping once regional groups are implemented for GAROC. At the LGA Board of Directors meeting on 29 November 2019, the following CEOs were appointed to the inaugural group:

 Andrew Aitken,

 Cate Hart, City of Prospect

 Deb Larwood, District Council of Kimba

 Glenn Rappensberg, Alexandrina Council

 Michael Sedgman, Rural City of Murray Bridge

 Adrian Skull, City of Marion

 David Stevenson, Regional Council of Goyder

 Mark Withers, City of Port Adelaide Enfield At the first meeting of the Group held on 18 February 2019, City of Marion CEO Adrian Skull was elected Chair and a schedule of meetings for 2019 was established. Workshop with the LGA Board As well as establishing the key priorities for the year, at a workshop with the Board, the Group:  established a forward agenda based on the activities of the LGA Board;  determined to provide advice on ad hoc issues as required; and  acknowledged that the Group’s role is to provide professional advice with a sector-wide lens.

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Local Government Reform The Group provided feedback on the LGA’s reform proposals and helped to shape the LGA’s first submission to the Government’s Local Government Reform Program. The advice provided to the LGA Board of Directors is summarised below:  Code of conduct reform is a priority. Consideration should be given to establishing an independent oversight panel to deal with issues promptly and with the powers necessary to impose meaningful penalties for unacceptable behaviour (such as suspension and loss of allowance).  A review of the standards and requirements for mandatory training should be undertaken to improve the relevance and usefulness to new and returned elected members. Consideration should be given to introducing pre-nomination training for all election candidates.  The Group supported proposals to strengthen audit committees but reinforced the challenges that regional councils can face in attracting and retaining appropriately skilled independent audit committee members.  Strong support for central collection and publication of data, with enhancement of Local Government Grants Commission data a sound starting place.  Strong support for a stronger focus from the LGA on asset management planning and refreshed guidance materials being provided to councils. Community Awareness Presentation The Group received a presentation on the results of the 2019 community survey outcomes and awareness strategy for the next 4 years. The Group provided positive feedback on the LGA’s proposed strategy and supported increased investment in a cohesive sector-wide awareness campaign culminating in the 2022 council elections. Details of meetings

During the 2018-19 financial year, a total of 2 committee meetings were held on the following dates:  18 February 2019  9 May 2019 In addition to the scheduled meetings, the Group:  held a joint workshop with the LGA Board on 17 April 2019; and  provided advice on the Productivity Commission Inquiry out of session.

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CEO Advisory Group member attendance at meetings during the year:

Member Number of meetings eligible to Number of meetings attended attend Andrew Aitken 3 3 Cate Hart 3 2 Deb Larwood 3 3 Glenn Rappensberg 3 2 Michael Sedgman 3 3 Adrian Skull 3 3 David Stevenson 3 3 Mark Withers 3 3

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Report on the LGA Audit and Risk Committee for 2018-2019

Introduction Each year the Audit and Risk Committee provides a report to the LGA Board of Directors summarising its activities during the previous year. The Committee’s annual report is a requirement of the Committee’s Terms of Reference. Provided below is an overview of the Committee’s annual report for 2018/19. This report highlights the key topics discussed in the 2018/19 financial year and summarises some areas of focus for the next 12 months. It includes:  a summary of the work performed by the Committee during the year.  an overview of the LGA’s progress in developing its risk and internal control framework.  details of meetings, including the number of meetings held during the period and the number of meetings attended by each member.  a brief indicator on the Committee’s focus for 2019/20.

Summary of work performed during the year Context The local government sector in South Australia came under significant public scrutiny in 2018/19. Adverse media coverage of expenses of Council employees and elected members that involved the then President of the LGA created significant reputational risks for the sector and the LGA. The Audit and Risk Committee is cognisant of the need for the LGA to not only follow leading practice in its conduct and use of resources but also to be seen to follow leading practice. Significant items which came to the attention of the Committee or were overseen by the Committee are described below.

Risk Management Policy and Framework The Committee monitored the development of the LGA’s Risk Management Policy and Framework. This included a gap analysis between the policy and current practice at the LGA. The Committee continues to receive regular reporting on the progress of the action plans from this work to address the high risk areas.

External Audit - new auditor appointed for 2018/19 The LGA tendered its external audit and appointed a new external auditor for the LGA and its subsidiaries. We support the appointment of the same external auditor across all entities providing consistency in the audit methodology, improved governance of the subsidiaries and efficiencies in the audit of year-end financial statements. The Committee provided oversight in the tendering, evaluation and recommendation of the auditor to the LGA’s Board. The Board approved the Price Waterhouse Cooper’s appointment in February 2019. Senior staff from Price Waterhouse Coopers have attended all Audit and Risk Committee meetings since the appointment.

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External Audit - monitoring of prior year audit findings The Committee has continued to monitor the work being undertaken by the Secretariat to address the external audit findings from prior years. Some of the actions completed in 2018/19 have included the implementation of a risk management policy and framework, undertaking a self-assessment of internal financial controls, improving banking processes and implementing a purchase order system. The self-assessment of internal controls has highlighted areas for improvement in the internal control environment which require remediation.

Payroll and statutory returns Some payroll errors were identified and resolved by management during the year. As a result, the Audit and Risk Committee recommended an internal audit of payroll which was completed during the year and the implementation of recommendations will continue to be monitored.

Internal Audit Plan The Committee recommended the establishment of a three-year internal audit plan. At this stage, management developed a plan for 2018/19 year and included three audits covering payroll, work health and safety and disaster recovery. The Secretariat is currently reviewing the findings and developing action plans to address the issues raised. The Committee will monitor the resolution of these issues in 2019/20. In July 2019, a strategic three-year internal audit program will be considered by Audit and Risk Committee.

Policy Review The LGA’s Strategic Management Framework was noted by the Committee, identifying that certain policies were out of date and there were policy gaps in the LGA’s corporate policies. The Committee reviewed a number of drafted policies regarding governance, code of conduct and finance. The Committee continues to provide feedback on policies designed to improve governance and accountability. Due to the volume of policies under development, this work will continue into 2019/20. The Committee has also recommended that policies are streamlined to apply across all LGA entities including subsidiaries.

Annual Business Plan and Budget The Audit and Risk Committee considered and provided feedback on the LGA’s Annual Business Plan and Budget for 2019-20 acknowledging the budget deficit position was due to an investment in Commercial Services and Emergency Services.

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Commercial Services The LGA is investing in Commercial Services to diversify its income stream and provide better service to Councils. The Audit and Risk Committee has made recommendations to minimise the risks associated with unsolicited proposals and has emphasised the need for robust business cases for new services.

Grant projects The Committee has recommended a detailed review of the policy and processes around management of grant funded projects including the research and development scheme. This is to identify and mitigate the risks associated with project expenditure, realising the intended benefits of the projects and appropriate project management to deliver value for money to the local government sector. This has been scheduled by management for later this year due to the management’s workload.

Details of meetings During the 2018/19 financial year a total of seven (7) Committee meetings were held on the following dates:  Wednesday 1 August 2018  Monday 3 September 2018 (special)  Wednesday 14 November 2018  Friday 25 January 2019 (special)  Wednesday 6 February 2019  Thursday 18 April 2019  Wednesday 5 June 2019 The Chair of the Audit and Risk Committee also met with the President of the LGA at various times during the year and attended two meetings of the LGA Executive committee by invitation. A joint meeting between the Audit and Risk Committee and the LGA Board was also held to discuss the objectives of the Committee and how to ensure proper communication between the Board and the Committee. It was agreed that a joint meeting between the Board and Audit and Risk Committee would continue at least annually.

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Audit and Risk Committee member attendance at meetings during the year was: Member Number of meetings Number of meetings eligible to attend attended

Ms Rosina Hislop (Chair) 7 7

Mayor David Parkin (LGA Board 2 2 member rep until October 2018)

Mayor Karen Redman (LGA Board 5 4 member rep from November 2018)

Ms Yvonne Sneddon (Independent 7 5 member)

Ms Patricia Christie (Independent 7 7 member)

Major Keith Parkes (LGA Board 1 1 member proxy)

Future work program Major items for the Committee to review, provide comment and feedback on during 2019/20 will include:  Overseeing the improvements to risk management, including resolution of treatment action plans, identification of risks in business units and improving the risk culture at the LGA.  Overseeing the review of the LGA’s grant programs designed to ensure appropriate internal controls and consistency in the management and reporting of grants.  Implementation of a three-year Internal audit program assessing financial controls, and other high risk areas facing the LGA.  Greater oversight of the LGA’s subsidiaries.  Continuing to review and provide feedback of work being undertaken by the Secretariat to address external audit findings, internal control gaps and improvements to processes.  Monitoring of the LGA’s Commercial Services  Annual Business Plan and Budget  Liaising with the LGA’s external auditor on the interim audit and end of year financial statements

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6.4 LGASA Mutual Annual Report 2018-2019

LGA Business From: Andrew Johnson, Chief Executive Officer - LGASA Mutual Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3D Develop, review and improve LGA commercial enterprises Meeting: Annual General Meeting 31 October 2019 ECM: 688548 Attachment: To be distributed separately

Recommendation That the Annual General Meeting receives and notes the LGASA Mutual Annual Report for the year 2018-2019.

Discussion Mr David Holston, Chair of LGASA Mutual Pty Ltd will present his annual Chair’s report on the activities of LGASA Mutual, incorporating the LGA Mutual Liability Scheme and Workers Compensation Scheme. LGASA Mutual Pty Ltd’s 2018-2019 Annual Report (including the Schemes abridged financial statements) will be distributed to members prior to the meeting, and printed copies will be available at the meeting.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 115

6.5 LGA Procurement Annual Report 2018-2019

LGA Business From: Andrew Haste, Chief Executive Officer, LGA Procurement Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3D Develop, review and improve LGA commercial enterprises Meeting: Annual General Meeting 31 October 2019 ECM: 688658 Attachment: To be distributed separately

Recommendation That the Annual General Meeting receives and notes the LGA Procurement Annual Report for the year 2018-2019.

Discussion Mayor David O’Loughlin, Chair of LGA Procurement will present his annual Chair’s report on the activities of LGA Procurement. LGA Procurement’s 2018-2019 Annual Report will be distributed to members prior to the meeting, and printed copies will be available at the meeting.

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6.6 LGA 2019 Value Proposition and Pricing Methodology

LGA Business From: Lisa Teburea, Executive Director Public Affairs Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3C Improve LGA governance and operations with a focus on people, finances and our members Meeting: Annual General Meeting 31 October 2019 ECM: 688843 Attachments: 689740, 661934

Recommendation That the Annual General Meeting notes the report.

Discussion The LGA Constitution and Ancillary Document ‘Membership Proposition’ detail the relationship between the LGA and its member councils. The Membership Proposition outlines a suite of obligations that the LGA has to its members. This includes the LGA publishing each year a ‘value proposition’ that will identify and value the specific membership benefits provided to members in the preceding financial year. The LGA is also required to provide councils with a Pricing Methodology and Pricing Schedule for the services provided by the LGA to its members. Value Proposition Councils gained financial benefit from membership of the LGA in two ways:  Savings - where councils are able to spend less on services due to their membership; and  Contributions - where councils receive funding due to the work of the LGA. Councils also receive a number of non-financial benefits such as access to information, resources and advice, a strong voice on issues that matter to local government, and increased staff and elected member capacity and capability. The ‘LGA Value of Membership’ was first developed and distributed to member councils in August 2016. This ‘LGA Value of Membership’ was independently verified by UHY Haines Norton in March 2017 and based on their analysis, the average benefit of LGA services to all councils was calculated as being $1,557,620. The ‘LGA Value of Membership’ was again independently updated by UHY Haines Norton in March 2018. For 2018, the average benefit of LGA services to all councils was $2,001,383 and for the sector was $139,443,633. The 2019 LGA Value of Membership report has again been prepared by UHY Haines Norton and their final Value of LGA Membership report is provided as an attachment. The report shows an overall increase of estimated value to the sector of $141,664,788 (1.59% improvement) and estimated value to member councils of $2,483,677 (24.1% improvement). The summary of financial benefits identified in this report is provided in the table below.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 117 Table 1. Summary of LGA Value of Membership 2019 report Initiative Estimated Improvement Estimated Benefit Improvement Benefit to Sector for Sector to Participating for Councils Councils Advocate $64,091,704 $1,242,887 Assist $17,340,460 $368,658 Advance $60,232,624 $872,132 Total March 2019 $141,664,788 1.59% $2,483,677 24.1% Total March 2018 $139,443,633 4.56% $2,001,383 28.49% Total at March 2017 $133,368,568 $1,557,620 Not all financial benefits are available to all Councils The LGA Value of Membership 2019 report was endorsed by the LGA Board of Directors in July 2019 and is published on the LGA website. The data contained within the 2019 LGA Value of Membership report will be used to prepare tailored Value Propositions for individual member councils to highlight the value and benefits of the specific services and programs accessed during the previous 12 months. As a process improvement, the LGA is investing in a new Customer Relationship Management program that will assist us to better monitor and report on engagement and service provision to our members and enhance our accountability. 2019/20 Pricing Methodology and Schedule The Pricing Methodology and Pricing Schedule seeks to outline to members what services the LGA will provide as part of their membership subscriptions, what services a charge will apply to and how the charges are calculated. This document will guide the LGA on setting fees and charges each year as part of its annual budget process and will be revised, considered and adopted by the LGA Board each year as part of the process of adopting its priorities, plans and key activities for the ensuing year. This is the second year that the LGA has prepared the pricing methodology. A number of minor changes have been made to this document, with the primary intent, as recommended by the LGA’s Audit and Risk Committee, to reduce its size and make it more concise. The 2019/20 Pricing Methodology and Pricing Schedule incorporates:  General increases in line with the Local Government Cost Index  2.5% increase in member subscriptions (as adopted by the Board at its June 2019 meeting)  The new fee structure for the Squiz Content Management System  Changes to the structure/fees of event sponsorship after nil increases for a couple of years  The inclusion of Emergency Management training courses designed to be delivered on a cost recovery basis, with the exception of i-Responda Essentials, which is intended to be delivered without additional cost to members via contribution from LGASA Mutual. The 2019/20 Pricing Methodology and Schedule was adopted by the LGA Board of Directors in July 2019 and is published on the LGA website.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 118 Financial and Resource Implications The LGA’s Annual Business Plan and Budget allocates sufficient resources to undertake this work and satisfy the obligations outlined in the LGA Membership Proposition.

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LGA OF SOUTH AUSTRALIA VALUE OF MEMBERSHIP - 2019

Corinne Garrett UHY Haines Norton

March 2019

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CONTENTS EXECUTIVE SUMMARY ...... 4 Scope ...... 4 Methodology ...... 4 A Warning on Averages ...... 4 Service Areas Assessed ...... 4 Key Findings ...... 5 Financial Benefit ...... 5 Summary ...... 5 Advocate ...... 5 Assist ...... 6 Advance ...... 7 BACKGROUND ...... 8 Local Government Associations ...... 8 Australian Local Government Association ...... 9 SERVICES ...... 9 Advocate – Financial Benefits ...... 9 Aged Care ...... 9 Awareness Campaigns ...... 9 Regional Youth Traineeship Program ...... 10 Special Local Roads Program ...... 10 State Wage Case ...... 10 Supplementary Road Funding ...... 11 Public Health Program ...... 11 Advocate – Non-Financial Benefits ...... 11 Advocacy in General ...... 11 Australian Local Government Association (ALGA) ...... 11 Economic Development Initiatives ...... 12 Events ...... 12 Natural Resources Management Reform ...... 12 Planning...... 13 Specified ...... 13 Assist – Financial Benefits ...... 13 Climate Change ...... 13 Coastal Management ...... 13 Dog & Cat Management Act ...... 14 Waste and Recycling ...... 14 Nuisance and litter ...... 15 Education and Training Programs ...... 15 Council elections campaign...... 17 Emergency Management ...... 17 Energy Efficiency Audit ...... 18 Executive Recruitment ...... 18 Governance Policies and Guidelines ...... 18 LED Public Lighting Contract Legal Advice ...... 19 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 121

Legal Delegations and Authorisations Template ...... 19 Media Training ...... 19 Online Services ...... 20 Planning – Implementation of Legislation ...... 20 Regional Youth Traineeship Program ...... 21 Research and Development Scheme (R&D Scheme) ...... 21 Support of Regional Local Government Associations ...... 22 Travel...... 22 Assist – Non-Financial Benefits ...... 23 Benchmarking ...... 23 Careers in Councils ...... 23 Documents/Templates/Policies, Guidelines and Information Papers ...... 23 Enews and Ecomms ...... 24 Governance General Advice and Support ...... 24 Governance and Policy Officers Network (GPON) ...... 24 Governance Panel ...... 24 LGA Corporate Governance ...... 25 LGA Website ...... 25 Local Government Communicators Network (LGCN) ...... 25 Local Government Communications Conference ...... 25 Local Government Events Network (LGEN) ...... 26 Media Advice ...... 26 Murray Darling Association ...... 26 Networking ...... 26 Roads and Works Conference ...... 27 Sector Morale and Leadership Program ...... 27 Service Certificates and Awards ...... 27 Social Media Training ...... 27 Advance – Financial Benefits ...... 28 LGA Procurement ...... 28 Banking ...... 30 Insurance ...... 30 Advance – Non-Financial Benefits ...... 31 LGA Directory ...... 31 Tendering – Individual Councils ...... 31 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 122

EXECUTIVE SUMMARY

Scope UHY Haines Norton has been engaged by the Local Government Association of SA (LGA) to provide a report on the value of membership to the LGA, updated for 2019.

Methodology This report builds on the work undertaken and reported in 2017 and 2018. Interviews and workshops were used in 2018 to identify key services offered by the LGA while information from 2017 was reviewed and expanded upon. In 2019, staff were asked to consider information provided in 2018 and to respond on the status of current services and to highlight new services provided to members.

We have determined ‘Value’ by comparing the costs paid by councils to comparable alternative prices. LGA staff have provided conservative estimates where supplier comparisons were not available. Where there is a sector benefit open to all members, we have divided the total by the number of councils that have access to - or used - the service, resulting in an estimated average.

Many services require staff resources of the LGA. If these services were undertaken by councils individually, they too would require an allocation of staff resources. For this report, we calculated staff resources on a professional level staff member rate of level 5 to 6 with responsibilities as detailed in the South Australian Municipal Salaried Officers Award. We have estimated a full-time salary (including on-costs such as superannuation and workers compensation insurance) as costing a council approximately $102,657 per year full time. This estimated salary is an average of a range of councils’ Enterprise Bargaining Agreements for Level 5/6 staff.

A service can be valuable to members even if the value is not able to be quantified in financial terms. We have included these types of services in this report.

LGA staff, LGA website data, and staff from associated service providers such as Local Government Risk Services (LGRS) and the Local Government Finance Authority (LGFA) have provided information to inform this report.

Our report has been prepared for the LGA for understanding the value of membership to the LGA and should not be used for any other purpose.

A Warning on Averages It is important to note that averages mean that some councils gained more, and others less than the average benefits indicated. Councils will receive an individual value proposition providing a more detailed overview of the value of the specific services and programs accessed.

Service Areas Assessed This report lists the services assessed against the LGA’s three objectives that guide the organisation:

 Advocate  Assist LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 123

 Advance

Key Findings Section 59 of the Local Government Act 1999 sets out the roles of members of councils. Of relevance is Subsection (iii) which sets out that one of the purposes of a member of council is:

“to keep the council’s resource allocation, expenditure and activities and the efficiency and effectiveness of its service delivery, under review.”

Our report demonstrates that there is a financial advantage for councils to be a member of the LGA. There is also a significant non-financial benefit of membership. Membership of the LGA, therefore, is an essential tool for councils and their elected members in seeking to commit to ongoing improvement in the efficiency and effectiveness of service delivery.

There are several services provided by the LGA which are difficult to quantify in financial terms yet provide indirect benefits to elected members and staff in the sector. It would be challenging for individual councils to arrange these services and a council having to go without the service or source a supplier at a potentially significant cost.

The following tables summarise the services provided by the LGA, their link to the LGA’s key initiatives, and the estimated value to the average council, both in financial and non-financial terms as well as the sector.

Financial Benefit Councils gained financial benefit from membership of the LGA in two ways:

 Savings - where councils can spend less on services due to their membership  Contributions - where councils receive funding due to the work of the LGA

Summary Initiative Estimated Benefit Improvement Estimated Benefit to Improvement for to Sector for Sector Participating Councils Councils Advocate $64,091,704 $1,242,887 Assist $17,340,460 $368,658 Advance $60,232,624 $872,132 Total March 2019 $141,664,788 1.59% $2,483,677 24.1% Total March 2018 $139,443,633 4.56% $2,001,383 28.49% Total at March 2017 $133,368,568 $1,557,620 Not all financial benefits are available to all councils

Advocate Estimated Financial Benefit Sector Average Per Number of Service Participating Councils Council Aged Care HACC Funding Commitment Contribution $27,000,000 $397,059 68 Awareness Campaign - Savings $3,490,331 $51,328 68 Special Local Roads Program $13,450,373 $498,162 27 State Wage Case - Savings $102,000 $1,500 68 Supplementary Road Funding - Contribution $20,000,000 $294,118 68 Public Health Program $49,000 $720 68 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 124

Total Advocacy Benefit $64,091,704 $1,242,887

Service Non-Financial Benefit Advocacy in General Being part of a strong united voice when dealing with State and Federal Governments. Financial benefits are shown separately. ALGA Membership Advocacy at the national level Economic Development United influence on State Government policy development and ability to Initiatives unite to undertake major economic development projects. Events – AGM/OGM Promotion of sector and networking Conferences Natural Resources United voice to the State Government on matters that affect local Management Reform government in South Australia Planning

Local government reform Budget submissions Increased awareness of local government cost pressures

Assist Estimated Financial Benefit Sector Average Per Number of Service Participating Councils Council Climate Change $183,701 $2,701 68 Coastal Management - Guidelines $510,000 $15,000 34 Coastal Management - Grant $100,000 $2,941 34 Dog & Cat Management Act $80,000 $8,000 10 Education and Training $552,807 $8,130 68 Elections Campaign $872,576 $12,832 68 Emergency Management $3,490,331 $51,328 68 Energy Efficiency Audit $354,803 $50,686 7 Executive Recruitment $16,000 $8,000 2 Governance Policies and Guidelines $3,689,748 $54,261 68 LED Public Lighting Contract Legal Advice $250,000 $10,000 25 Legal Delegations and Authorisations Template $680,000 $10,000 68 Media Training $57,780 $2,140 27 Online Services – Website software $1,875,000 $37,500 50 Online Services – Intranet and Extranet $700,000 $20,000 35 Online Services – My Local Services App $920,000 $20,000 46 Online Services – Candidate Website $670,000 $10,000 67 Planning – Implementation of legislation $744,260 $10,945 68 Regional Youth Traineeship Program $1,158,456 $26,941 43 Research & Development Scheme $2m distributed over programs described elsewhere in this paper Support of Regional Local Government Associations - Outreach Program $150,000 $3,061 49 - Regional Capacity Building $284,998 $4,191 68 Total Assist Benefit $17,340,460 $368,657

Service Non-Financial Benefit Benchmarking Simplified access to data Careers in Council Improved candidate ability and response Documents/Templates/ Assist staff and elected members to achieve better outcomes for their Policies & Guidelines & communities by having increased capability and expertise in undertaking Information Papers LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 125

their roles using best practice principles and ensuring compliance with legislation. E-news Increased understanding of sector issues Governance General Advice Increased staff and elected member capability and Support Governance Panel Independent panel for complaint assessment LGA Corporate Governance LGA that effectively serves members LGA Website An information source that increases the capability of staff and elected members Local Government Communicators Network Increased staff capability Local Government Events Network Media Advice Media resource & unified responses Media Coverage Media resource & unified responses Networking forums Competent staff delivering best practice services to communities and decrease in risk and the potential cost of non-compliance Planning forums and Increased staff and elected member capability resources Roads & Works Conference Improved knowledge and outcomes in the management of road infrastructure. Sector Morale & Leadership Improved Elected Member leadership Program Service Certificates & Promote sector and encourage leadership Awards Social Media training and Increased staff capability resources

Advance Estimated Financial Benefit – Current Sector Average Number of Service per Councils Council using service LGA Procurement  Diesel Fuel Rebate $527,314 $31,018 17  Professional Development and Tools $680,000 $10,000 68  Tendering – General Tenders $10,036,000 $147,588 68  Tendering – Tender Panel $1,606,000 $38,238 42  Tendering – Electricity Contract – organising tender $1,600,000 $25,000 64  Tendering – Electricity Contract savings $7,500,000 $117,188 64 Available when  CWMS (not available to all councils) - Contribution $4,700,000 building new Schemes LGFA - Banking – interest on loans savings $7,907,339 $125,513 63 LGFA – Banking – bank charges savings $68,000 $1,000 68 LGA Workers Compensation Scheme - Insurance $13,505,499 $198,610 68 LGA Mutual Liability Scheme - Insurance $7,894,735 $116,099 68 LGA Asset Mutual Fund – Insurance $4,207,737 $61,878 68 Total Advance Benefit $60,232,624 $872,132

Service Non-Financial Benefit LGA Procurement  LGA Directory One-stop source of information LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 126

 Tendering – Fee for Service Robust tendering process in line with public sector procurement principles

BACKGROUND

Local Government Association of South Australia The LGA is the peak representative body for local government in South Australia. The Parliament of South Australia supports the LGA in Schedule 1 of the Local Government Act 1999. The mission of the LGA is to provide leadership to councils for the benefit of the South Australian community.

The LGA Constitution adopted in October 2018 sets out the framework for two-way engagement between the LGA and its members. Central to this has been the adoption of a Membership Proposition, which articulates the obligations of the LGA to member councils, and the obligations of member councils to the LGA.

The Membership Proposition, which is ancillary to the LGA Constitution, reinforces the objectives of the LGA as being to advocate, assist and advance; and confirms the right of members to contribute to policy development and the LGA’s advocacy strategies, to obtain assistance to build capacity and increase sustainability, and to access the services provided by the LGA.

The requirement to develop an annual Value Proposition to set out the value of the specific membership benefits provided to members in the previous financial year, and to publish an annual pricing methodology for LGA services, is embedded within the Membership Proposition.

The obligations of a member council to the LGA include:

 payment of subscriptions;  complying with the Constitution;  providing information and support as may reasonably be requested by the LGA to carry out its objectives; and  adopting leadership standards that contribute to the strength of the sector. The importance and benefit between an LGA and its members has been well articulated by the International Cooperation Agency of the Association of Netherlands Municipalities (VNG):

“Members need to understand that their LGA is as strong or as weak as they want it to be. An LGA with many active members, all paying their membership fees and contributing with information, knowledge, participation in working groups, etc. will be stronger than one with members who expect to get everything done for them without contributing anything themselves.” (VNG International, 2007)

In South Australia, a strong LGA is vital in providing a single voice to State Government instead of 68 individual voices, and enabling the State Government to see the LGA and the local government sector as a partner while providing services and representation to members.

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Australian Local Government Association The LGA of South Australia is a member of the Australian Local Government Association (ALGA).

The Australian Local Government Association’s strategic priorities are:

o Strengthening local government finances o Sustaining local roads, transport and other infrastructure o Improving natural and built environmental outcomes o Enhancing regional equity and regional development o Building capacity and sustainability in local communities o Connecting member associations and the local government sector o Engaging effectively in Australian Government processes. (Australian Local Government Association, n.d.).

State Associations fund the ALGA through annual subscriptions. The ALGA has a small secretariat based in Canberra.

ALGA’s President represents local government in Australia on the Council of Australian Governments (COAG). This body includes the Prime Minister, State Premiers, Territory Chief Ministers and the ALGA President, and provides local government with a significant opportunity to sit at the table with Australian decision makers. City of Prospect Mayor David O’Loughlin, who is also a member of the LGASA’s Board, is the current President of ALGA. The LGASA also appoints two Directors to the Board of ALGA to provide a voice for South Australian councils in the federal arena. The LGASA’s current representatives on the ALGA Board are LGA Preisdent Mayor Sam Telfer (District Council of Tumby Bay) and LGA Board Director Mayor Karen Redman (Town of Gawler).

SERVICES

Advocate – Financial Benefits

Aged Care The LGA prepared discussion papers and submissions in the review of aged care funding reforms (Federal) and advocated to the State Government to continue HACC funding during the SA roll-out of NDIS. This advocacy contributed to securing a $27 million commitment from the former State Government to continue Home and Community Care (HACC) funding in 2018/19.

 Sector contribution benefit is $27,000,000  Average council benefit is $27,000,000 divided by 68 councils being $397,059

Awareness Campaigns The Awareness Campaign is an ongoing campaign to raise awareness of what councils do and the value of council services. The LGA provides a design concept, campaign collateral and graphic design services for councils for all awareness campaigns.

This service is enhanced by LGA membership surveys, sector-wide research and brand segmentation. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 128

If councils were required to manage this individually, they would likely need the services of approximately a 0.50 FTE staff member at a professional officer level estimated at $51,000, including all employment on costs. These figures are an estimate of the average required, with council election years requiring more than other years.

 Estimated potential savings to each council of $51,328  Estimated potential sector savings are $51,328 x 68 = $3,490,331

Regional Youth Traineeship Program The LGA partnered with Primary Industries and Regions SA to implement the LGA Regional Youth Traineeship Program as part of the State Government’s $10 million Jobs Accelerator Fund. These two-year programs aim to assist unemployed young people in regional areas to participate in the labour market through paid full-time employment while undertaking a Certificate III qualification. The programs are also designed to create sufficient incentive for councils to continue employing these trainees following the conclusion of the funding period.

The programs will increase regional youth workforce participation across regional SA and support council workforce development initiatives to address their ageing workforce and skill shortage areas. The programs provide a wage subsidy per trainee for up to two years filling 114 positions across SA Regional Governing Bodies.

This funding was only available for regional and rural councils outside of metropolitan Adelaide.

 Sector benefit was a funding contribution of $4,000,000 over three years being $1,333,333 annualised. $1,158,456 was allocated directly to participating councils with the remainder of the annual funds being allocated to spend on youth leadership forums to be delivered in the regions.  The program was only available to regional councils with 43 participating and receiving an average benefit of $26,941

Special Local Roads Program The LGA is a member of and provides secretariat support to the Local Government Transport Advisory Panel (LGTAP), which advises the LGA Board on the recommendation of projects (under the Identified Local Road Grants and SA allocation of Roads to Recovery) to the Federal Minister for Local Government and Territories. Without the due process and prioritisation that the LGTAP provides, SA councils would be unable to provide a unified or cohesive ask to the Commonwealth Government for road funding. Lacking a unified voice would effectively put all these grants at risk.

There has been $13,450,373 made available through this program with 27 councils receiving project funding.

 The benefit to each council is state-wide facilitation and coordination effort  The sector benefit is $13,450,373  27 councils received project funding at an average of $498,162 per participating council

State Wage Case The LGA prepares for and represents councils in the Industrial Relations Commission on behalf of all council as employers in South Australia. This task involves data collection and submission to the LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 129

Commission. If councils had to undertake this process individually, it would likely cost at least $1,500 per year based on the process conducted by LGA officers.

 Estimated savings to each council of $1,500  Sector savings benefit is $1,500 x 68 councils being $102,000

Supplementary Road Funding The LGA was heavily involved in a successful advocacy campaign that resulted in the 2017/18 Federal Budget providing $40 million over two years to reinstate Supplementary Road Funding for South Australian councils. This funding will ensure a fairer share of roads grant funding from the Commonwealth and will assist councils in maintaining and upgrading the State’s road network for the benefit of their communities.

 Sector benefit is funding contribution of $40,000,000 over two years being $20,000,000 per year  The average contribution to each council for one year is $20m divided by 68 is $294,118

Public Health Program The Local Government Public Health Program has been successful in supporting the development of councils’ understanding of their role in public health, and undertaking public health planning processes as sepcificed in the Act. It has delivered a range of guidelines and support material designed to ensure the consistent application of the provisions of the Act across local government in coordination with relevant State Government authorities.

The Program also delivers a strong partnership and relationshp between SA Health and the LGA for public health.

The 2018 LGA Value of Membership Report noted that in 2018 the LGA had successfully negotiated a further 12-month extension of the Public Health Program funding to assist councils undertaking their functions under the South Australian Public Health Act (2011). In 2019, a final four month extension was negotiated, providing a $49,000 commitment in an agreement between the LGA and SA Health.

 The sector benefit was funding of $49,000  The benefit to each council is updated understanding and being part of a strong partnership between SA Health and the LGA

Advocate – Non-Financial Benefits

Advocacy in General A crucial role of the LGA is advocacy on behalf of the local government local government sector to influence the State Government - and the Federal Government through the ALGA - in local government matters.

 The benefit to each council is being part of a strong united voice when dealing with State and Federal Governments on matters that affect local government

Australian Local Government Association (ALGA) As previously mentioned, the LGA of South Australia is a member of the ALGA which gives South Australian councils the benefit of sector-wide advocacy at the national level. Since November 2016, the ALGA President has been City of Prospect Mayor David O’Loughlin. Mayor O’Loughlin’s thorough LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 130

understanding of uniquely South Australian issues has resulted, with support from the LGA, in securing additional road funding specifically for South Australia.

Many SA councils are represented at the ALGA National General Assembly each year, where councils from across the country come together to discuss the sector’s national advocacy agenda. The LGA adds value to members in this process by preparing a comprehensive briefing paper on the motions that councils have submitted for debate, including information about current LGA policy positions, potential benefits and implications for SA councils, and relevant work already underway at the state level.

 Benefit to councils is advocacy and campaigning at the national level

Economic Development Initiatives The Local Government Act 1999 describes one of the functions of a council as ‘to promote its area and to provide an attractive climate and locations for the development of business, commerce, industry and tourism.’

This service works to assist councils to foster a sustainable local economy that promotes wealth and job creation and community well-being objectives, and provides councils with increased resources to deliver superior service to its ratepayers. This is accomplished by leading and advocating on critical issues via coordinating submissions to parliamentary inquiries representing the sector on government and non-government committees, and producing policy and guidelines to help councils be more effective and efficient.

Examples include the China Engagement Strategy, contributions to the Regional Visitor Strategy, joint formation with the State Government of a red tape reduction taskforce, MLGG Smart Cities program and research of South Australia’s population growth potential.

 The benefit to councils is being part of a united influence on State Government policy development. Additionally, this service allows councils to unite to undertake major economic development projects that would be difficult individually.

Events Major events are the LGA Conference and Annual General Meeting and the Showcase and Ordinary General Meeting. There were approximately 200 attendees, including both council staff and elected members, per event in 2018.

Other events include the Roads and Works Conference, which is discussed in the ‘Assist’ section.

 The benefit to each council is the promotion of the local government sector and facilitation of networking between council members

Natural Resources Management Reform The LGA provided a submission on the State Government’s proposal to reform Natural Resource Management in South Australia.

 The benefit to each council is a united voice to the State Government on matters that affect local government in South Australia. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 131

Planning The LGA has provided submissions to the State Government on behalf of the local government sector on:

 Accredited Professionals Scheme and draft Regulations;  Assessment Pathways;  Performance Indicators;  Natural Resources and Environment Discussion Paper;  Integrated Movement Discussion Paper;  Planning and Design Code Technical Paper;  State Planning Policies; and  Environment and Resources Committee of Parliament Inquiry into Heritage.

 The benefit to each council is a united voice to the State Government on matters that affect local government in South Australia

Budget Submissions The LGA prepares a State Budget Submission each year to advocate for greater financial assistance to councils and highlight opportunities for the State Government to drive downward pressure on councils’ rates by addressing issues such as the Solid Waste Levy, collection of NRM fees, community housing rebates, and statutory fees and charges.

 The benefit to each council is a united voice to the State Government on matters that affect local government in South Australia and increased public awareness of the costs pressures faced by councils

Assist – Financial Benefits

Climate Change The LGA has produced guidance notes and documents to inform councils on climate change risks, and to assist councils in developing and implementing measures to address these risks. This has taken approximately .03 FTE of a professional officer being $2,701. If councils were to develop this work individually they would likely need a similar level of staffing.

The LGA become core partners of Climate KIC, which acts as a means to work collaboratively with other state/territory governments, universities and financiers on a range of projects relating to climate adaption, mitigation and regional development.

 Estimated savings for councils is $2,701 each  Sector saving benefit is $2,701 x 68 being $183,701  Benefits to councils are capacity building to address climate risks and being part of a national working group to further knowledge and understanding of climate change issues

Coastal Management The LGA was instrumental in developing a project that will provide strategic support for all 34 coastal councils. The LGA implemented a process that resulted in state-wide buy in for the creation LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 132

of an SA Coastal Alliance and the development of a state wide strategy, and supported the R&D fund submission (which was successful) from the Limestone Coast LGA, who is now managing the project. The value of the grant is $100,000.

 Estimated contribution for coastal councils of the grant is $100,000 divided by 34 councils being $2,941 each  Sector benefit is $100,000 for the thirty-four coastal councils

Dog & Cat Management Act The LGA assisted ten metropolitan councils when an issue arose with additional services charges proposed by the RSPCA. The assistance provided included:

 Seeking legal advice with a value of $3,000;  Information sessions and discussion between RSPCA and impacted councils; and  A model service agreement for use by the councils with the RSPCA at a cost of $5,000.

Without the LGA’s involvement individual councils would have needed to seek their own legal advice and develop their own agreements.

 Estimated savings for participating councils is $8,000 each  Sector saving benefit is $8,000 x 10 participating councils being $80,000

Waste and Recycling In early 2018, China implemented changes to its waste import policy which included restrictions on the quality of recyclable materials that it would accept. This placed significant pressure on the waste management sector and increased costs for councils.

The LGA acted quickly to lead a series of activities designed to support councils in managing the financial implications of the revised policy, and to discuss opportunities for growth and evolution of the local waste management industry in SA. These included:

 Participating in State Government Working Groups and providing information and advice to feed into development of the State Government’s support package;  Sharing results of the LGA commissioned “Market Analysis of South Australian Recyclables” report to assist councils in understanding their exposure;  Developing a model “rise and fall” clause to assist councils in re-negotiating these contracts to provide for risk sharing arrangements; and  Hosting a Waste Pathways Workshop “Beyond China Sword” in June 2018 to explore the implications of the China Sword policy for the recycling industry in SA.

The Waste Pathways Workshop identified an opportunity for councils to increase their purchasing of recycled-content products and materials, strengthening markets in SA. In December 2018, the LGA was successful in obtaining funding from Green Industries SA for a pilot project to trial the adoption of sustainable procurement targets by councils. Those councils involved in the pilot project will adopt a target for the 2019/20 year. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 133

The LGA also completed an update of its model waste management contract documents towards the end of 2018.

 Benefit was support and leadership in responding to the industry transition  Consulting and legal advice to assist with the response in the amount of $25,000  GISA funding for the pilot project in the amount of $96,500

Nuisance and litter The Local Nuisance and Litter Control Act 2016 conferred a number of responsibilities onto councils in responding to local nuisance issues in their communities. The LGA has worked closely with the EPA in supporting councils to administer the new legislation. The LGA/EPA Heads of Agreement document that underpins this relationship was reviewed in 2018 and found to be working well, with a number of areas for improvement identified.

 Benefit is coordinated support from both LGA and EPA in administering legislation

Education and Training Programs Education and Training have been focused on a training needs analysis, reviewing the brand, service offer and improving their regional delivery. Work has commenced in developing a strategic and business plan, including a risk analysis to shape the service offer into the future.

In the second quarter of 2019, visits to councils within metropolitan and regional areas will commence for the purpose of building a deeper understanding of the needs in tailoring training programs. This strategic work is being done in the background whilst delivering a new Elected Member Leadership Program, providing one-off tailored programs for councils and supporting on- going training for council staff.

The current service offers training targeted to local government and uses relevant local government content. Training is delivered within the metropolitan and regional areas of South Australia through a variety of methods including face-to-face, online and via webinar. In this financial year the LGA has facilitated a robust and cost effective procurement process (through LGA Procurement) to attract and engage presenters to work with the LGA to provide quality content delivery that meets our sector needs.

If councils were to undertake training separately to the LGA service, they would need to engage an alternative provider to develop and deliver a program specifically tailored to their requirements. An indicative quote from a South Australian training institution that provides training to the State Public Service estimates that preparation and delivery of a one-off, one day, specialist training session to an individual council would be approximately $7,000 plus GST. This comprises $4,800 for development and $2,200 for delivery.

A specialist training program developed and delivered by the LGA for a council for a minimum of 10 participants is charged @ $3,650 plus GST. In comparison there is a saving of approximately $3,350 per program delivery when compared to alternative providers. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 134

Specialist Training Cost Comparison per council one day session $8,000

$6,000 $7,000 $4,000

$2,000 $3,650

$0

LGA Education & Training Cost Alternative Provider Cost

The LGA additionally provides training for individual council staff and elected members. Full day courses are charged per participant at $430 each. Discounts apply with group bookings. Alternative commercial offerings range in price but are approximately $795 per day. This comparison is a saving of $365 per person, per one day course.

There were 8,904 FTEs employed by councils in South Australia in 2017. If 10% of these were to attend one full day training session a year with the LGA as opposed to an alternative provider, there would be a saving of approximately $365 per person per session. In this case the total saved across the sector would be $324,850 which is an average of $4,780 per Council.

FTE Training 2017 Comparison if 10% attended one full day of training / year $800,000 $600,000 $707,550 $400,000

$200,000 $324,850

$0 LGA Education & Training Cost Alternative Provider Cost

Note: Graphs and figures presented are conservative estimates only.

In addition the LGA continues to support Flinders University by attending their JobLink Summits and presenting to students the benefits of considering a career in local government, or indeed volunteering in the meantime. Held twice a year, they provide an opportunity for graduates to interact with LGA staff for networking and information seeking purposes as a part of the Careers and Employability Service within the University.

 The estimated benefit to councils is relevant to the amount of training undertaken with the LGA as opposed to alternative providers. There is the potential to save considerably when utilising the LGA’s E&T services and in the examples used above, savings per council could well be in excess of $8,130p.a.  Sector savings benefit based on the above two examples is a conservative $552,807p.a. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 135

Council elections campaign This campaign occurs every four years. Its primary objective is raising awareness of the council elections and increasing participation levels, particularly during the ‘nominate’ phase of the election.

The LGA also provides graphic design services for councils to provide greater opportunities for spreading the messages during council election campaigns.

This service is enhanced by LGA membership surveys, sector-wide research and brand segmentation.

Printed materials, provided free of charge to councils included posters, banners, corflutes, flyers, bookmarks and badges.

The following digital artwork files were available online for councils:

 Advertisements;  Flyer options;  Social media posts and images;  Website banners and buttons;  Digital email footers;  Template media releases/newsletter articles; and  Flyer and poster translations.

If councils were required to manage this individually, they would likely need the services of approximately 0.5 FTE staff member at a professional officer level earning approximately $102,657, being $51,328 for the election year including all employment on-costs. As this is a service with the majority of the cost falling every four years, the annualised cost has been divided by 4, being $12,832.

 Estimated annualised savings benefit to each council of $12,832  Sector savings benefit is $12,832 x 68 councils being $872,576

There is no cost to individual councils to use the candidate website, and alternative commercial products have been costed at $10,000 per council. Sector benefit is $10,000 x 67 councils being $670,000. Note that Roxby Downs Council does not have elections.

 Estimated savings benefit per council using this service is approximately $10,000  Sector savings benefit is $10,000 x 67 councils currently using the app being $670,000

Emergency Management The LGA advocated to the State Government to ensure councils are heard at the state level for emergency management policy development. This advocacy allowed the LGA to be represented on State Committees and involved in the coordination of local government during emergency events.

This activity has resulted in a streamlining of the flow of information, as it would be unworkable for 68 councils to work with the State individually. The LGA knows the issues facing councils and is LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 136

therefore able to provide councils with up to date, timely and best practice information, as well as inform the State regarding emergency management issues affecting councils.

The funding achieved from the State Government assists councils in emergency management planning to improve preparedness.

State and Federal funding and the Local Government Association Mutual Liability Scheme contribute to the costs of LGA staff wages for this service.

If councils were required to manage this individually, they would likely need the services of approximately a 0.50 FTE staff member at a professional officer level estimated at $51,328 including all employment on-costs.

 Estimated savings benefit to each council of $51,328  Sector savings benefit is $51,328 x 68 councils being $3,490,331

Energy Efficiency Audit An energy audit was conducted for seven councils. This was an independent audit which included an electrical/structural audit of councils’ assets. The aim was to provide a ‘best fit’ energy solution instead of a product-based solution that ensures that energy is used efficiently, and future needs are tailored to the most efficient type of energy available to each specific region.

The following are estimated potential savings if recommendations from the energy audits are adopted and actioned by councils.

 Estimated average potential savings benefit to participating councils is $50,686  Sector savings benefit is $354,803 divided by 7 participating councils

Executive Recruitment This service provides councils with:

 Ability to provide intelligence on local government candidates Australia-wide (in consultation with other LGAs);  Reduced recruitment spend and a superior in-house end-to-end recruitment solution;  Work undertaken by in-house resources, who are salaried employees instead of recruitment consultants;  A fixed price service offering;  All-inclusive service; and  One-year guarantee on all placements.

 Estimated average potential savings benefit for 2 participating councils is $8,000  Sector savings benefit is $16,000 divided by 2 participating councils.

Governance Policies and Guidelines The LGA has developed a range of resources that relate to council governance topics, including information papers, template registers, authorised officer templates, model policies, standard operating procedures (SOPs) and guidelines. There are currently 67 governance policies, guidelines and information papers, nine SOPs and twenty-two authorised person templates. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 137

The ongoing annual cost of updates is $10,000 for external contractors with an additional staff resource of approx. 0.25 FTE.

If councils had to prepare and update this information individually, they would likely need to pay similar costs and allocate similar staff resources costing potentially an estimated $10,000 plus 0.25 FTE of $102,657 (estimated professional wage being $25,664). This calculation results in a saving of $35,664 per year.

New resources are continuously being added. In 2018 eight new guidelines, templates, model policies or information papers were added to the database of governance resources. The costs of providing the new resources was approximately $16,000 for external contractors and approx. 0.03 FTE of $102,657 (estimated professional wage being $2,597). This calculation results in a savings of $18,597.

 Estimated savings benefit to councils is approximately $54,261  Sector savings benefit is $54,261 x 68 councils being $3,689,748

LED Public Lighting Contract Legal Advice The LGA sought a series of legal advices on the LED public lighting contracts offered to councils. This included a comprehensive summary of the proposed contract arrangements, an analysis of the commercial and legal risks and recommended amendments to provide greater protection to councils. The LGA funded advice on three updates of SAPN’s draft contract and made this advice available to councils upon request via LGA circular. 25 councils contacted the LGA directly to obtain a copy of this advice.

The cost of legal advice was $10,000 and if councils had needed to seek this advice themselves the cost would likely to have been similar.

 Estimated average potential savings benefit for 25 participating councils is $10,000  Sector savings benefit is $10,000 x 25 participating councils being $250,000

Legal Delegations and Authorisations Template The legal delegation templates relating to 30 pieces of legislation that govern local government has been developed by the LGA to assist councils with this legally required document. The LGA updates these delegations quarterly at a contracted legal cost of $10,000 per year.

Councils would need to undertake this task individually if not provided by the LGA.

As well as the updates of the delegations, the LGA informs councils through the issue of circulars.

There is no additional cost to member councils for using this service.

 Estimated savings benefit to each council is $10,000  Sector savings benefit is $10,000 x 68 being $680,000

Media Training This service provides an in-house, customised, hands-on training session on media techniques and strategies to help councils when liaising with the media. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 138

This provides a sector-wide benefit of consistency of messaging, techniques and strategies tailored exclusively for the local government sector in SA. Providing in-house training results in significant cost savings in travel and time for regional councils.

LGA staff have found that an average market price for this training is $3,000. The LGA provided training for less than this, and also provided additional discounts where councils grouped to undertake the training. Training was delivered directly to councils or to regional areas where councils grouped together. This saved considerable time and travel costs compared to training given in Adelaide. The travel costs have not been quantified. Training provided by the open market also incurs disbursement costs for the person providing training to cover travel costs. These disbursements were not charged to participating councils by the LGA.

 Estimated benefit to the 27 participating councils was an average of $2,140  Sector savings benefit was $57,780

Online Services The LGA provides website software for councils. Alternative website software has been costed at between $25,000 and $50,000 more than the LGA service, being an average potential saving of $37,500 (i.e. $25k + $50k divided by 2). 50 Councils use the Unity software. The sector benefit is $37,500 x 50 Councils being $1,875,000.

 Estimated average savings benefit for the 50 councils using this service is approximately $37,500  Sector savings benefit is $37,500 x 50 councils being $1,875,000

Alternative suppliers of website software for intranet and extranet (Elected Members website) charge an additional cost, while the LGA’s system is at no extra charge, resulting in a potential savings per council of $20,000. 35 councils use this service resulting in a sector benefit of $20,000 x 35 councils being $700,000.

 Estimated average savings benefit for the thirty-five councils using this service is approximately $20,000  Sector savings benefit is $20,000 x 35 councils being $700,000

Alternative suppliers for an individual app for each council have been costed at $20,000. 46 councils use the ‘My Local Services App’.

 Estimated savings benefit per council using this service is approximately $20,000  Sector savings benefit is $20,000 x 46 councils currently using the app being $920,000

The LGA provides an online transaction facility for councils using Synergy Corporate Finance software which allows communities to make online payments via council websites. This service is charged on a ‘fee for service’ basis. This service supports 12 regional councils.

Planning – implementation of legislation The LGA provided legal advice to all councils on draft regulations relating to the Accredited Professional Scheme under the PID Act. The cost to the LGA was $10,945 and was provided to LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 139

councils free of charge. If councils were not members of the LGA they would have needed to source this information themselves to ensure they were prepared and able to comply with impending legislation.

 Estimated savings benefit to each council is $10,945  Sector savings benefit is $10,945 x 68 councils being $744,260

Regional Youth Traineeship Program This program provides unemployed young people in regional areas with training and employment opportunities in local government.

The State Government has contributed $4 million to two rounds of the program which is managed by the LGA and provides a wage subsidy per trainee for up to two years, filling in excess of 114 positions across SA regional councils.

The LGA provides case management support to all participating councils and trainees to ensure the success of the program, and is supported by a formal deed between the LGA and the Minister for Regional Development that establishes key deliverables and milestones.

According to data from the National Centre for Vocational Education and Training Research, South Australian apprentices and trainees (undertaking non-trade occupation qualifications) have a completion rate of around 56%. In comparison, for the Regional Youth Traineeship Program, 80% of participants in round one completed at least one qualification. Employment outcomes have also been strong. Since completing the program, 83% of participants in round one gained employment, either within or outside the local government sector.

Collaboration between the LGA and PIRSA representatives has secured non-expended funding from the first round for regional leadership programs aimed at current and past RYTP participants which are tentatively scheduled for mid-2019.

This program supports employment, career progression and retention of young people in South Australia, and is a good example of what can be achieved when governments work together in partnership.

Only regional councils are able to apply.

 Estimated savings benefit to each participating council is $26,941  Sector savings benefit is $1,158,456 for the 43 participating councils

Research and Development Scheme (R&D Scheme) The scheme is funded by:

 Tax-equivalent payments from LGFA to State Treasury as required by legislation; and  A percentage of mineral “rubble” royalty payments made by councils to the State Government.

These two sources supply more than $2 million in funding each year. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 140

Hundreds of projects have been completed over the past twenty years. This paper notes many services which have received R&D funding. A portion of the funding each year is available to anyone with interest in local government including councils, for research projects that can benefit local government.

There has been a total of $6,900,000 allocated to 176 projects over the past five years.

The Scheme funds the expenditure for administration from within the scheme.

 The benefit to all councils is a $2 million contribution per year for projects that increase knowledge and capability. Many of these projects are covered elsewhere in this document.

Support of Regional Local Government Associations The LGA liaises with LGA regions, updating meetings on the website and promoting regional events.

The Regional LGA Associations elect representatives to the SA Regional Organisation of Councils (SAROC) and the Metropolitan Local Government Group (MLGG) which provides a forum for Regional LGAs to develop decisions on public policy matters of importance to the country and metropolitan Councils. The LGA provides the secretarial role for SAROC and the MLGG.

The LGA and R&D funding cover the costs of the administration function of the regional LGAs. The LGA also contributes to the administrative support for SAROC and MLGG.

Regional LGAs have been supported financially in 2018/19 through the LGR&DS with a Regional Capacity Buidling Grant and the LGA Outreach Services Program. These programs support projects undertaken by regional LGAs for the benefit of member councils. The Metropolitan Local Government Group also received the Regional Capacity Building Grant.

 The Outreach Program contributed $150,000 to all regions except for the Metropolitan Region, to a total of 49 councils.  Average benefit per regional member councils is $3,061

 The Regional Capacity Building contributed $284,998 to all regions  Average benefit per council is $4,191

Travel This service provides 5% up-front discounts on any Virgin flight bookings. LGASA Travel has only recently been implemented. Quantifiable savings will be able to be reported in next year’s Membership Value Report.

The service provides:

 Transparency of travel spend per staff/division/council;  Increased accountability and monitoring of individual and council travel expenditures;  Up-front visibility of fees and areas for cost savings such as accommodation, car hire and flights;  Time-saving via an easy one-stop shop for staff to make their bookings; and LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 141

 The duty of care, risk and compliance for council staff on work-related trips.

 The benefit to participating councils is travel discounts. The actual $ benefit will be reported in the 2020 Membership Value report.

Assist – Non-Financial Benefits

Benchmarking The Benchmarking project gathered data held by the LGA, council websites and Local Government Grants Commission into one source. A report and dashboard spreadsheet has been produced on data collected which compares groups of councils. The report covers spending and priorities of services for groups of councils and a database of supporting data.

This work will help the LGA to identify areas of potential need in council groups and develop services to address these. The information will also be useful for council staff to consider areas that could be investigated further to improve cost and efficiencies.

 The benefit to each council is simplified access to data

Careers in Councils Careers in Councils is a job search page on the LGA website which is accessible by the public. It has an average of 55,000 hits per month. When councils list their vacancy adverts on their Unity websites, these automatically are displayed on the LGA site resulting in a council’s advert reaching a much wider audience. The LGA also provides a Unity console for each non-Unity council, where both council staff and LGA staff can load council jobs and these are then subsequently displayed on the Careers in Council job search page.

 The benefit to each council is expanded vacancy advertising leading to potentially improved candidate ability and response

Documents/Templates/Policies, Guidelines and Information Papers The LGA has produced useful guides and resources for many of the professional areas of local government, including:

 Key dates;  Notifiable data;  Social Media Guide for Elected Members;  CEO Checklist (for first council meeting following completion of the periodic election);  Council Members’ Guide;  Information paper on committee and corporate structures available to councils;  Information paper on Labor Hire Licensing;  Notifiable Data Breach Scheme Guidelines ;  Template registers for travel by council members and council employees;  Information and updates on legislation;  Community engagement;  Developing and maintaining arts and culture;  Volunteer management. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 142

 The benefit to councils is guides to assist staff and elected members to achieve better outcomes for their communities, and to ensure compliance with key legislation and best practice procedures eNews and Ecomms This service provides council members and CEOs with fortnightly eNews updates on LGA activities and issues for the sector. This service includes media monitoring and software. There are no additional costs for councils.

There are also a Communications, LG Events Network and Emergency Management eNews sent to practitioners on a monthly or bi-monthly basis.

 The benefit to each council is improved understanding of sector issues

Governance General Advice and Support Local government operates within a legal framework established by the SA Parliament and the LGA. This service provides a range of tools and expert staff to assist councils to meet their legislative obligations. The service also includes receiving and responding to many direct enquiries from staff and elected members and the development, publication and review of many model policies, templates and guidelines relating to the roles and responsibilities of councils under the Local Government Act 1999. The LGA also provides advice and tools to assist councils to practice good governance, which encompasses how councils are elected, the accountability of staff and elected members and how councils report to their communities. More detail on this service is included in the Documents/Templates/Policies, Guidelines and Information Papers section.

 The benefit is an increase in staff and elected member capability

Governance and Policy Officers Network (GPON) The Governance and Policy Officers Network is a network that is set up by council employees to further their knowledge in the governance area. LGA staff participate in the email network discussions and attend quarterly meetings. The LGA provide free use of LG House meeting facilities, including webinars to allow online participation by regional councils. It is a useful avenue to offer advice, disseminate and collect relevant information.

 The benefit to councils is an avenue for dissemination and collection of information to improve staff knowledge  Free use of LGA Webinar facilities improves collaboration opportunities for regional and metro councils, and ensures regional councils can attend meetings without travel expense and time

Governance Panel This service assists councils in addressing complaints about the conduct of council members under the Code of Conduct for Council Members Part 2 – Behavioural Code. For the period 1 July 17 to 31 June 18 the panel dealt with 13 referrals of alleged breaches of the Code. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 143

Investigations by the Panel is funded on a user pay basis, including a capped price initial assessment.

All councils may use the service if they choose. The 13 referrals related to 10 councils.

 The benefit to each council is access to an independent panel for complaint assessment with knowledge of local government in South Australia

LGA Corporate Governance The LGA is an entity itself and has governance and management responsibilities. It is vital that the LGA leads by example in these areas while supporting its members. This service includes the provision of agendas and minutes for the Board, Audit Committee, records management, and WHS. In 2018 the LGA introduced new governance arrangements through a new LGA Constitution.

 The benefit to each council is a best practice organisation that can effectively serve its members

LGA Website A range of materials about local government are available to the public and members on the LGA website. The public section provides considerable information on current matters and local government in general. The members-only section is an in-depth resource for information on most topics that affect councils in South Australia.

There was a total of 374,964 hits on the website by council staff and elected members during 2018 with a range of 326 to 15,650 hits and an average of 5,514 hits per council.

 The benefit to each council is an in-depth information source for their communities along with information for council staff and elected members to improve their capability

Local Government Communicators Network (LGCN) The LGA supports, provides advice and network meetings for the LGCN. The LGCN is a network of council communications practitioners who are responsible for delivering their councils’ local information to their communities. The LGA provides administration, database management and program development support and covers the costs of the meetings. The meetings are also provided via video conferencing facilities for those who are unable to attend, this is of particular benefit to regional councils. The sessions include topics such as media, communication, marketing, website, social media and community engagement. The LGCN webpage provides council communication practitioners with a wide range of resources including policy templates and guidelines to assist them day to day.

 The benefit to each council is increased staff capability

Local Government Communications Conference The Local Government Communications Conference was held in 2018 for the first time. The LGA initiated this event because there was a gap in the professional development opportunities for SA council communication practitioners. Historically there are only conferences for communications practitioners held in the eastern states, which creates additional costs for council staff to attend. Consultation was held with practitioners in the lead up to and after the event, and the overwhelming feedback was positive with a request that it be held each year. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 144

Approximately 70 council staff members attended the conference in 2018.

 The benefit to each council is increased staff capability

Local Government Events Network (LGEN) The LGA supports, provides advice, and provides network meetings for the LGEN. This is a network of council staff who are responsible for delivering their councils’ events. The LGA provides administration, database management and program development support for all meetings and hosts one of the three meetings per year (others are hosted at a council venue).

The LGA covers the costs of the meetings held at the LGA, and one meeting per year is also provided online for regional councils. The meetings cover topics such as event management, event sponsorship, event marketing, event logistics, and event risk mitigation. The LGEN webpage provides council events staff with resources, standard policies and guides to assist them

 The benefit to each council is increased staff capability

Media Advice and Coverage This service provides councils with advice on how to manage media enquiries. The LGA can help members develop a media statement, or put councils in touch with neighbours that have similar queries. It also provides media advice on the sector or industry issues. There is no additional charge to councils to access the service.

The LGA President, CEO and senior staff frequently participate in interviews on topics that are relevant to the local government sector. The outcome is that councils are often not required to respond on topics which broadly affect the sector, or if they do, they are able to do so with support from the LGA. The LGA processed 418 media enquiries in 2018.

 The benefit to each council is access to trained experience media personnel along with unified media responses to sector-wide issues

Networking Many networking groups work both within and with the LGA.

Networking is an essential professional development practice to assist in ensuring that staff are fully informed of legislative changes. Council staff work within a highly regulated framework that covers numerous pieces of legislation. Understanding of this legislation is continuously challenged by case law along with ongoing changes to the statutory law framework.

Local government is very involved with multiple business units and the delivery of various service types to the community. Networking assists in staff working towards the attainment of best practice principles.

By increasing legislative compliance and professional expertise, networking is a tool to help deliver better services to communities with potential for less cost in delivery and less cost and risk of non- compliance. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 145

 The benefit to each council is competent staff able to deliver compliant and best practice services to communities, and decrease in risk and the potential cost of non-compliance in a complex legislative environment

Roads and Works Conference The Roads and Works Conference is a forum where the latest construction, maintenance and operations of community infrastructure topics and best practices are presented as well as government policy changes that effect councils’ management of roads and infastructure projects. Additionally, the conference brings together in one place significant suppliers to local government infrastructure and works departments. The conference also enables these practitioners to meet and network with others, allowing discussion on and potential sharing solutions for common problems.

Approximately 200 staff and elected members attended the conference in 2018.

 The benefit to each council is improved knowledge and outcomes in the management of road infrastructure

Sector Morale and Leadership Program This program is an emerging program to improve sector morale and improve leadership capability. One anticipated outcome of the program is to demonstrate enhanced elected member leadership with reduced complaints and associated costs for councils.

Strategies planned include improved networking for elected members, being responsive to leadership issues in the sector, building on and utilising sector engagement, developing leadership capability, induction and peer support programs.

The Elected Member Leadership Program was released in Sept 2018 and provides a range of professional development opportunities along with Elected Member Mandatory Training Modules.

 The benefit to each council is improved Elected Member leadership with the potential reduction of costly Code of Conduct issues

Service Certificates and Awards These awards include certificates for elected members to celebrate achieving key milestones of service, and special awards such as the Joy Baluch, Jim Hullick and Jim Crawford awards.

There are also service certificates for staff for achieving service to local government ranging over 10 years, 20, 25, 30, 35, 40, 45 & 50 years of service.

Over 400 certificates were issued in 2018 to staff and elected members.

 The benefit to each council is to increase the profile of local government and to encourage leadership

Social Media Training The Social Media 101 & 2.0 training is ‘video conferenced’ and recorded, making it available to councils in regional SA that would generally need to travel to attend. Training costs are covered by participants and are initiated and consulted/produced by the LGA’s Communications Team and delivered through LGA’s Education & Training Service. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 146

A suite of resources has also been developed by the LGA for council staff when introducing and using social media channels for their councils as well as for the training sessions noted above. These are available for free to all councils on the LG Communicators webpage.

There are also 15 one-hour webinars on various social media topics, for example understanding Twitter and Instagram, promoting your event on social media, advertising on social media, website analytics, developing engaging social media content, Facebook business manager where users are charged a fee for access. These webinars provide council practitioners focussed content and allows them to review the webinars in their own time as they require. The LGA communications team assisted in the production/editing of these webinars (in-kind services), and this includes the Social Media for Elected Member resources and two training webinars, all of which are available through the LGA’s Education & Training Service.

 The benefit to each council is increased staff and Elected Member capability

Advance – Financial Benefits

LGA Procurement LGA Procurement is a commercial entity owned by the LGA and designed to support councils to deliver the best value for their communities. LGA Procurement identifies, develops and provides value-added products and generates economies of scale through bulk purchasing, contract administration and e-commerce. LGA Procurement provides several contracts to councils that have been negotiated as a sector-wide endeavour and is continuing to investigate additional contracts which would give economy of scale savings to councils.

LGA Procurement also undertakes the tendering process for individual or groups of councils.

Diesel Fuel Rebate LGA Procurement discovered that considerable funds collectively had been overpaid by councils. 17 councils have used the services of LGA Procurement to gain savings in this area.

 Estimated average savings benefit to the 17 councils using the service was $31,018  Sector savings benefit was $527,314

Professional Development and Tools LGA Procurement also provides training for council officers on a fee for service basis. Training is targeted to local government in South Australia, ensuring that staff are competent in procurement practices.

LGA Procurement also provides tools and resources such as model policies, documentation and templates and advice. LGA Procurement estimate the cost of annually maintaining these documents being $10,000 per year. Councils would likely need to undertake this process individually if this service was unavailable.

 Estimated savings benefit to councils is competent staff and procurement processes and $10,000 per year  Sector savings benefit is $10,000 x 68 councils being $680,000 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 147

Tendering Tendering for the ‘whole of sector’ contracts which provide savings to councils on the tendering costs and ability to tender in a bulk buy situation.

General tenders The spending through LGA Procurement resulted in estimated savings of $10,036,000 over the 68 councils, ranging from $1000 to $955,000 with an average of $147,588.

 Sector benefit in savings on contracts was $10,036,000  The estimated average benefit per council in savings on contracts is $10,036,000 divided by 68 Councils being $147,588

Tender Panel Councils can use the LGA Procurement Vendor Panel. This is a panel of vendors that have gone through a competitive tender process. Councils can save costs by using the Vendor Panel rather than undertaking the entire tender and supply research process themselves.

 Sector benefit in tendering savings is $1,606,000  42 councils used this service resulting in an average benefit for those councils of $38,238

Electricity The contract for electricity is worth $43 million over two years. 64 councils can be involved in this contract. LGA Procurement estimates the cost of organising the electricity contracts to be $50,000 which would otherwise be borne by councils individually.

LGA Procurement estimates the potential savings on the cost of electricity being at least $15 million over the two years for the sector.

Estimated benefit per council annually for arranging the contract is $50,000 divided by two years = $25,000.

The estimated average benefit per council is $15 million divided by 64 potential councils divided by two years = $117,187.

 Sector savings benefit for organising the tender and contract is $25,000 x 64 councils being $1,600,000 with the savings benefit per council being $25,000  Sector savings benefit of contract savings is $7.5 million per year with the savings benefit per council being $7.5 million divided by 64 councils being $117,188  Total sector savings benefit is $1.6 million + $7.5 million being $9.1 million  Council savings benefit is $25,000 + $117,188 being $142,188

Community Wastewater Management Schemes (CWMS) LGA Procurement has negotiated a new contract for $47 million over ten years as a subsidy for the cost of building new schemes. This benefit is only relevant to councils needing to develop new CWMS. Many metropolitan councils would have SA Water providing sewerage schemes for their communities and would not need this service. LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 148

 The benefit is funding contributions of $4.7 million per year as a subsidy to councils building new CWMS

Banking The Local Government Finance Authority of South Australia (LGFA) exclusively serves South Australian councils and local government bodies. The LGFA was established in 1983.

In accordance with section 24 of the Local Government Finance Authority Act 1983, the Treasurer of South Australia guarantees all of LGFA’s liabilities, including monies accepted on deposit from clients.

Members who support the LGFA with deposits and use the loan facilities receive a share of annual distributions.

The LGFA makes payments equivalent to company income tax to the Research and Development Scheme administered by the LGA.

Banking Benefit to Sector Borrowings held by SA councils at 31st January 2019 $718,849,040 The difference in interest rates between alternative commercial products and the LGFA 1.1% dependent on the type of borrowings undertaken by the minimum difference was a reduced rate of; Total savings per year for sector for borrowings $7,907,339 Average savings per council (total divided by 63 councils with loans) $125,513 The LGFA investment accounts do not charge fees which provides an average saving per $1,000 Council of: Total savings per year for Sector on bank fees $68,000 Savings per council $1,000

Insurance Local Government Risk Services provides councils in South Australia with some insurance products.

LGA Workers Compensation Scheme (LGAWCS) Local government in South Australia is self-funded and not part of the Return to Work SA (RTWSA) scheme that other South Australian businesses must be members of. The LGAWCS provides members with a discounted registration cost compared to the RTWSA.

All benefits to councils are listed in the table below;

LGA Workers Compensation Scheme Benefit to Sector Annual sector saving from self-insurance compared to RTWSA - Savings $2,258,054 Special Distributions paid to Members - Contribution $2,872,504 Council Risk Incentive Program - Contribution $963,272 15.9% reduction in Annual Workers Compensation Claims - Savings $814,155 Scheme Funded Health & Wellbeing Program 2,200 Health Checks & 3,000 Skin Screenings – $815,771 Contribution Access to Scheme Funded WHS & Risk Specialists + System Development & Training – $3,955,532 Contribution Annual Subscription Fee for Skytrust Risk Management Software - Savings $450,007 Investment income from Contributions & Surplus funds – Contribution $1,376,203 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 149

Total sector benefit $13,505,499 Average benefit per council (total divided by 68) $198,610

LGA Mutual Liability Scheme This scheme provides councils in South Australia with fully integrated Risk, Claims and Legal services for the management of civil liabilities.

LGA Mutual Liability Scheme Benefit to Sector Special distributions paid to members in 18-19 - Contribution $2,000,000 Council Risk incentive program – Contribution $800,000 Access to scheme funded Risk Specialists & Risk Programs – Contribution $2,437,791 25% Reduction in claims $1,860,443 Investment income from Contributions and Surplus funds – Contribution $796,501 Total sector benefit $7,894,735 Average benefit per council (total divided by 68) $116,099

LGA Asset Mutual Fund This scheme provides councils in South Australia with broad coverage of their physical assets integrated with a specialised claims management system.

LGA Asset Mutual Fund Benefit to Sector Performance Bonus issued to Members in 18/19 as a contribution reduction – Contribution 1,934,974 Special distributions paid to Members in 2018/19 - Contribution 954,398 Access to Funded Asset & Risk Management Programs - Contribution 999,982 Investment income from contributions and surplus funds - Contribution $318,383 Total sector benefit $4,207,737 Average benefit per council (total divided by 68) $61,878

 Total sector benefit for all schemes is $25,607,971  The average benefit per council (total divided by 68) is $376,588

Advance – Non-Financial Benefits

LGA Directory LGA Procurement produces a directory of all councils and other valuable information each year.

 The benefit to councils is access to updated ‘one-stop’ information

Tendering – Individual Councils LGA Procurement also undertakes the tendering process for individual councils on a fee for service basis. This service ensures a robust tendering process in line with public sector procurement principles.

 The benefit to councils is a robust tendering process in line with public sector procurement principles

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WORKS CITED

Aulich, G. G. (2011). Consolidation in Local Government: A Fresh Look. Retrieved from https://opus.lib.uts.edu.au/bitstream/10453/42065/4/LG-Consolidation-vol2-Background- Papers.pdf

Australian Local Government Association. (n.d.). About ALGA. Retrieved March 3rd, 2017, from Australian Local Government Association: http://alga.asn.au/?ID=42&Menu=41,81

Council of Europe. (1985). European Charter of Local Self-Government. Strasbourg. Retrieved from http://www.osce.org/kosovo/38288?download=true

Marsden, S. (2012). Local Government Association of South Australia: A History of South Australian Councils to 1936. Adelaide.

South Australian Employment Tribunal. (2017). South Australian Municipal Salaried Officers Award. Retrieved from http://www.saet.sa.gov.au/app/uploads/2017/06/IndustrialAwards_MunicipalSalariedOffice rs.pdf

South Australian Employment Tribunal. (n.d.). Enterprise Agreements. Retrieved from http://www.saet.sa.gov.au/awards-agreements-and-registers/enterprise-agreements/

VNG International. (2007). Establishing a Local Government Association (LGA). The Hague: VNG International. Retrieved March 2nd, 2017, from http://www.vng-international.nl/wp- content/uploads/2015/06/Establishing_LGA_Engels.pdf

South Australian Local Government Grants Commission Databases 2017

Council Financial Statements

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Pricing Methodology & Pricing Schedule 2019/20

www.lga.sa.gov.au LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 152

Contents

Contents ...... 2 Document purpose ...... 3 Background ...... 3 Pricing principles ...... 5 General principles ...... 5 Cross subsidisation ...... 6 Pricing authority, negotiation and discounts ...... 6 Fair use policy ...... 7 Pricing, invoicing & service disputes ...... 7 LGA Membership subscription ...... 8 Services Funded by Member Subscriptions ...... 9 Fee-for Service Activities ...... 11 Introduction ...... 11 Funded projects ...... 11 Local Government Governance Panel ...... 12 LGA Training ...... 13 Emergency Management development activities ...... 14 Events ...... 15 IT/ESP ...... 17 Commercial Services ...... 18 Appendix 1: Summary of LGA services & pricing ...... 20 Appendix 2: Members Subscription Fees 2019/20 ...... 25 Appendix 3: Other fees & charges 2019/20 ...... 27

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Document purpose

The Local Government Association of South Australia (LGA) provides a large range of services to its member councils. Traditionally the majority of these services have been funded from annual member subscriptions. The LGA is seeking to reduce its reliance on member subscriptions and grants as its primary source of funding to the many services it currently provides to its members and move to a more equitable and sustainable model based on providing member value. This may ultimately lead to minimizing any future increases in its membership subscription fees and/or provide an opportunity for the LGA to increase the core services it is able to provide to councils as part of their members’ subscriptions. This approach will also lead to the expansion of activities provided on a fee-for-service or commercial basis. This document is required to be produced by the LGA as part of its Membership Proposition Agreement and is designed to ensure the transparency in the setting of the LGA’s fees and charges each year. This document outlines the services that the LGA provides as part of its membership subscriptions, the circumstances where the LGA will charge for these services, as well as the pricing methodology employed for those services which the LGA charges members for the delivery of these activities.

Background

The LGA’s Strategic Plan sets as its vision “for every South Australian to have the best local government experience”. This vision is backed up by the LGA’s mission which is “to provide leadership, support, representation and advocacy on behalf of South Australian Councils, for the benefit of the community”. The LGA’s Strategic Plan is broken down into three Key Initiatives being:  Key Initiative 1: Leadership & Advocacy (Advocacy) – achieving greater influence for local government in matters affecting councils and communities.  Key Initiative 2: Capacity Building & Sustainability (Assist) – working with member councils to build capacity and increased sustainability. An integrated and coordinated local government.  Key Initiative 3: Best Practice & Continuous Improvement (Advance) – facilitating continuous improvement in councils and the LGA. These three Key Initiatives can broadly be summarised as Advocacy, Assisting and Advancing local government and the communities they represent.

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The LGA’s constitution indicates that the LGA will enter into “Membership Proposition Agreement” with each member council. The Membership Proposition Agreement seeks to outline each party’s rights and responsibilities as part of being a member of the LGA. It also seeks to outline what services the LGA will provide its members and the value of these services to member councils. The ‘Membership Proposition’ also indicated that the LGA will prepare the following documents annually:  A ‘Value Proposition’ which will outline and value the specific membership benefits provided to members in the preceding financial year. The Value Proposition will be annexed to [the] membership proposition and will be replaced each time the Value Proposition is updated: and  A Pricing Methodology & Pricing Schedule for the services provided by the LGA to its members. This Pricing Methodology & Pricing Schedule document is designed to meet the second part of the above requirement in the Membership Proposition. This Pricing Methodology & Pricing Schedule seeks to outline to members what services the LGA will provide as part of their membership subscriptions; what services a charge will apply to and how the charges are calculated It is envisaged that this document may require revision during the year as new services become available from the LGA, particularly as its commercial services division becomes fully operational. This document will guide the LGA on setting fees and charges each year as part of its annual budget process. This document will be revised, considered and adopted by the LGA board each year as part of the process of adopting its priorities, budget and key activities for the ensuing year. The document will, together with the ‘Value Proposition’ form a key attachment to the Members Proposition agreement between the LGA and each individual member council.

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Pricing principles

This section seeks to outline the LGA’s general principles for the pricing of its services. It provides details on potential issues around the cross subsidisation of services, details its pricing authority and negotiation process and describes the LGA’s fair use policy, as well as informing members of the LGA’s pricing, invoicing and service disputes processes. General principles

1. The LGA is an Association established to support South Australian local government. Constituted by its members as a not-for-profit organisation, it must operate in a financially sustainable way and, by extension, shall seek to charge fairly for the goods and services it provides. 2. The membership subscriptions paid by councils entitle members to a defined range of products and services. Products and services offered in addition to those covered under the membership subscription are to be fairly charged for. 3. It is acknowledged that there can be a differentiation in the nature of products and services provided based on member. Preference is for a minimum price point to be set with no upper limit, thus providing flexibility and incentive to appropriately cost services based on council need, costs incurred and the member's capacity to pay. 4. When setting the price point for all products and services, the full costs to the LGA are to be considered. At times, the Board or CEO may deem it appropriate to deviate from this principle if it is of strategic benefit to the Association and/or its membership. 5. Where possible, or commercially appropriate, members should be provided in writing with the full (GST inclusive) costs prior to any purchase decision or activity. When publishing prices, all amounts are to be expressed in GST inclusive terms. 6. Member councils: Unless otherwise agreed or negotiated, all billing will occur immediately upon the provision of the product or at the conclusion of any service delivered. For extended arrangements that last longer than 5 weeks, the preference is that monthly billing cycles be implemented. 7. Private sector customers: Pre-payment for the provision of products or services should be considered if appropriate. 8. All invoicing terms should be no more than 30 days. 9. Any customer disputes regarding costs shall be dealt with by the CEO in accordance with the principles detailed within this document. 10. In recognition of good business practice, the LGA will seek to fairly maximise its revenues on the sale of any goods or services deemed to be outside of the membership subscription.

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Cross subsidisation

Funds collected through the membership subscriptions shall be best utilised to fund those matters that are of either state-wide, or are of a specific significant segment interest. Undertaking substantive matters on behalf of individual - or small collectives of - members under the auspices of a councils 'Membership' has a potential to weaken the value of the current membership model. In such situations, there is a risk that an inequitable cross subsidisation may result, with all members contributing to effort or outcomes that may benefit only limited numbers of members. By extension, cross subsidisation, if left unchecked, has the material risk of placing an upward pressure on annual membership subscription rates and eroding over time the perceived value of membership for some councils. At times the Board or CEO may deem it appropriate to deviate from this principle if it is of strategic benefit to the Association and/ or its membership. Unless approval is granted by the CEO or Board, a Fair Use Test should be applied so as to determine whether any activity should be free-for-service or fee-for-service. A Fair Use Policy is outlined on Page 8.

Pricing authority, negotiation and discounts

The CEO is ultimately responsible for ensuring staff understand and comply with this pricing policy. The CEO may delegate authority to any officer the responsibility of offering for sale any product or service. It is the responsibility of delegated officers to ensure that the sale of any good or service conforms to the agreed pricing methodology and that any contracts entered into with a member or customer shall conform to the relevant LGA policies. It is also the responsibility of delegated officers to ensure all invoicing activities conform to the approved pricing methodology. Unless detailed explicitly within this document, no officer may offer additional discounting, other financial offsets or inducements to any member or customer, unless pre-approved by the CEO or Board. The LGA also acknowledges that a number of its services are provided on a cost recovery bases with little or no margins, meaning that discounts may not be readily available.

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Fair use policy

The Association exists to service and support members, and to offer support and guidance for any matters of concern or difficulty. Within the context of this policy, all member councils are entitled to an agreed level of face-to-face, email and telephone support for the duration of their membership. It is however unreasonable for the LGA to provide indefinite or unlimited support for members on individual matters that, due to their nature, will see the LGA incur higher than budgeted costs. As a rule-of-thumb, members can be asked to make a financial contribution when either of the following conditions are met: a. The issue requires a material response or extended application of time/effort and affects less than 14 member councils (20% member base) b. The Board or CEO consider the costs or efforts of resolving an issue are likely to exceed the Association's capacity to respond to, or fund, a response. Trigger 'B' is the default position for all member requests - any material impacts in terms of costs, labour or time that fall outside of the approved budget will require consideration and review by the CEO or General Manager. The calculation for determining a member's co-contribution will be assessed at the applicable cost for all labour and direct costs in excess of the threshold. The LGA's liability to an individual member for a single defined matter is capped at 3 hours of LGA labour and - if it is of a material nature - up to 5% of the affected member's subscription. Pricing, invoicing & service disputes

The LGA Corporate Services team under the direction of the Director Corporate Services is responsible for debt collection. For invoices in dispute the issue will be referred in the first instance to the authorising or responsible LGA officer to resolve. Any proposed resolution that results in a material change or reduction to the original invoice amount must be authorised by the relevant Executive Director or CEO. Any resolution that will result in the pricing levels in Appendix 3 being breached or modified by a factor greater than 20% must be referred to and approved by the CEO. If no resolution can be negotiated to the satisfaction of the member or customer, the issue is to be escalated to the CEO for a final decision.

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LGA Membership subscription

Under the LGA constitution, member councils must pay an annual membership subscription fee which is payable in advance. LGA member subscription fees fund the core activities of the LGA. These fees are calculated by applying a formula which has been designed to achieve the following basic principles in relation to the benefit of membership: a. some services have a fixed benefit to all members, irrespective of population or revenue base; and b. some services provide benefits relative to the size of the population of the council; and c. some services provide benefits relative to the revenue base of the council. The LGA has recently undertaken research into how membership subscriptions are calculated. In 2015/16 the LGA Board formally reviewed the membership subscription formula, and canvassed four alternative options with member councils. The final formula adopted by the Board in May 2017 for membership subscriptions is be phased in over a three year period commencing from 1 July 2017. The final formula adopted is based on the following: 1. There should be an equal flat component for each member designed to collect at least 20% of the overall subscriptions; 2. The 40% population and 60% revenue (3 year average) split for the balance of the subscription; 3. There is not a cap on the subscription limit. The LGA applies a declining block contribution rate for set increments in population and revenue. This results in larger councils (population and revenue) paying more than smaller ones, but at a lessor rate of increase. The LGA has calculated its membership subscription fees for 2019/20 based on the above formula and provides for a 2.5% increase on the previous year. 2019/20 is the last year of the three year phase in of the 2017 revised membership formula. A list of individual council LGA Membership Subscriptions for 2019/20 are included in Appendix 2.

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Services Funded by Member Subscriptions

Traditionally, the LGA has charged its members an annual subscription fee which has been used to fund a significant proportion of the Association’s expenditure. A summary of the core services funded by the LGA’s members subscriptions are highlighted in the table below.

Governance and Legislation Economic Development Member Services  Policies, Codes and Guidelines  Tourism  Electronic Services Program  Standard Operating Procedures &  Regional Development  Education and Training Templates  Mining  i-Responda  Governance  Economic Development Research  Industrial Relations and Human Resources  Delegations & Resources panels & advice  Authorised Persons  Economic Development Upcoming  Workforce Planning  Code of Conduct Events  Benchmarking information  Governance Network  Small Business  Media advice  Governance Panel  Local Infrastructure  Media coverage  Consultation and submissions  Campaigning and advocacy  Nominations to outside bodies Community Planning & Development Financial Sustainability  Ageing  Planning Reform  Model financial statements  Arts and Culture  Development Guide  Financial Sustainability Program  Aboriginal Affairs  Local Government Planners' Kit  Asset Management  Libraries  Standard Section 51 Bonding  Shared Services  Volunteers Agreement  Local Government Reform  Community Wellbeing  Housing & Urban Developments  Fair Federal Funding  Community Engagement  Planning & Development  Pensioner Concessions  Public Health Resources  Council Rate Resources  Emergency Management  Heritage & Planning  Rate Capping  Disability  30 Year Plan for Greater Adelaide  SA Local Government Price Index (LGPI)  Liquor Licensing  Building upgrade finance  State & Federal Government Budget submissions

Transport and Infrastructure Environment Research and Publications  Fair Federal Funding  Climate Change  LG Research & Development Scheme  Infrastructure Partnership  Natural Resource Management Projects  National Heavy Vehicle Law  Environment Protection  LG Research & Development Scheme  Powerlines & Vegetation  Native Vegetation Markers  LGA Surveys  Roads & Transport  Stormwater  Data Analysis  Transport Advisory Panel  Waste and Recycling  Illegal Dumping Toolkit  Local Nuisance and Litter Control

A list of the entire range of serves provided to member councils by the LGA is summarised in Appendix 1. Appendix 1 also aligns each service provided by the Association with the LGA’s Strategic Plan’s Key Initiatives of Advocate, Assist and Advance; as well as indicating how each service is funded. More details on each of these services are provided on the LGA’s website.

UHY Haines Norton has recently validated that the annual value of LGA membership to each council is in excess of $2.5 million. This translates to more than $142 million in savings across the sector every year.

UHY Haines Norton Adelaide in their assessment of the Value of LGA membership (2018) concluded that ‘there is a financial advantage for councils to be a member of the LGA. There is also a significant non-financial benefit of membership. Membership of the LGA therefore, is an important tool for councils and their elected members in seeking to commit to ongoing improvement in the efficiency and effectiveness of service delivery’.

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UHY Haines Norton also found that ‘There are a number of services provided by the LGA which are difficult to quantify in financial terms but both elected members and staff find invaluable. These services would be very difficult to arrange by individual councils with such a council having to go without the service or source a supplier at potential significant cost’. The LGA, like its member councils, only has a limited amount of revenue available to meet the increasing demands of its members. That is, while each member council pays an annual subscription to the LGA, the LGA is not able to provide every service every council seeks from its membership of the LGA. The LGA Board, through its annual budget process, determines the resources that it has available and the sector’s priorities and produces an Annual Business Plan which sets out the services and its works plan for the ensuring twelve months (also refer to the section on the LGA’s ‘Fair use Policy’ on page 7). The Annual Business Plan sets out what the LGA seeks to achieve, the level of service to be delivered and the resources available to deliver services via its membership subscriptions. LGA membership entitles member councils to:

• Telephone and email support for all matters of concern or difficulty within the areas that align with the core capabilities of the LGA. [Fair Use Policy Applies] • Policy and advocacy support for all matters of state-wide and local government sector interest. • Ability to submit motions for the consideration of the membership via SAROC & GAROC. • Access to a defined range of free membership services as agreed to annually by the Board and fully funded through the LGA Budget. This membership does not generally include: • Additional or ongoing support for any issue that is in outside of the 'Fair Use Policy'. • Products, services, support or advocacy for discrete or individual council matters. • Products, services, material support or dedicated advocacy for matters that generally affect or impact less than 14 member councils (20% of membership). While traditionally the majority of the LGA’s services have been funded by member subscriptions; the LGA is currently seeking to deliver a variety of fee-for-service products that have the potential to ultimately deliver a dividend to the LGA to be used to minimise any future increases in its membership subscription fees and/or provide an opportunity for the LGA of SA to increase the core services it is able to provide to councils as part of their members’ subscriptions.

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Fee-for Service Activities Introduction The LGA wishes to reduce its reliance on member subscriptions and grant funding by maximizing the value it can provide members through aggregated expenditure initiatives, value adding through the services it provides members and by the provision of commercial services. The LGA has a strong tradition of providing commercial services to its members at below market rates, providing a dividend back to the LGA and its members and providing a higher level of service and benefits than can be obtained from the private sector. The LGA also auspice a number of services that it delivers on behalf of members, with funding received from the state and federal governments. The LGA also employs an Executive Director Commercial who is tasked with expanding the range of commercial services that can be delivered to member councils. It is the LGA’s view that if it can expand the range of services it can provide member councils, it will be able to provide more services below existing market rates (saving councils a considerable amount of money), and provide members with value added services not currently available in the market. This will enable the LGA to reinvest in new commercial services and to off-set the reliance on member subscriptions for the general range of services it provides. This section seeks to outline the LGA’s pricing policy and methodology for the current fee-for- service activities it delivers to members as well as its methodology for delivering new services to the sector in the coming years. Funded projects The LGA regularly undertake a number of funded projects on behalf of the sector. These funded projects can include delivering programs on behalf of state and federal governments; projects funded by the Research and Development Fund as well as projects on behalf or in conjunction with other non-for-profit organisations. Recent examples of funded projects include:

 Research & Development Grants  Community Waste-water Management Scheme  Emergency Management, “Council Ready” program  State Local Government Infrastructure Partnership Generally, the LGA will seek to undertake these services on a full cost recovery basis for all funded projects. That is the LGA will seek to recover all direct project costs (including direct labour, materials, project support and contractors) and contribute to all LGA indirect costs (including office space, ITC and supervision) and overheads (including HR, finance, and records costs). The LGA does not seek to make a ‘profit’ or return a dividend to its general operations from funded projects.

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There will be times when the LGA may choose to subsidise funded projects, either as a result of receiving other external funding for the project (i.e. R&D funding) or from a deliberate decision of the LGA that the project is of such a benefit to the sector that it should be subsidised from the LGA’s membership subscriptions. In addition, there may be occasions when it may be appropriate for the LGA to ask its members for a co-contribution to funded programs where there is individual benefit to councils; and/or where funded projects do not cover all the LGA’s cost in delivering the program and it is beyond the LGA’s resources to fund the program from LGA membership subscriptions. The LGA also runs a number of number of programs based on a subsidy funded model, such as the CWMS program, where the LGA administers the state government’s contributions to programs jointly funded by councils.

Local Government Governance Panel The principal function of the Local Government Governance Panel is to assist councils in addressing complaints about the conduct of council members under the Code of Conduct for Council Members (Code), as made by regulation and as varied from time to time. The Panel Manager, appointed by the LGA, will make an initial assessment of each complaint referred to the Panel, to determine if the matter falls within the remit of the Panel, or whether the complaint should be referred elsewhere in relation to the Code (for example, to the Office for Public Integrity or to the Ombudsman). The cost for initial assessment of a complaint is up to $375. The cost of the investigation is based on an hourly rate, plus travel and accommodation where applicable. The hourly rate of the panel member may vary dependent on the panel member assigned to the investigation and the particular skill mix required to resolve the complaint received. The Panel Manager, in consultation with the selected Panel Member, will make an estimate of the time required to undertake the investigation and prepare the report and recommendation. This will be used to provide an estimate of costs to the respective council before commencing the investigation. The timeframe for dealing with the matter will also be confirmed.

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LGA Training LGA Training, formerly known as the LGA Education & Training (E&T) Service is one of many LGA Member services designed to support the needs of Members. LGA Training aims to promote, facilitate, enhance and make accessible education and training activities, opportunities and products for the Local Government sector in South Australia. LGA Training strives to provide the best value training opportunities for our members. All training sessions are priced according to a range of variables that can include costs associated with content development and updates, facilitation of sessions, the administration and promotion of each session, venue hire, catering, classroom resources, travel and accommodation. LGA Training strives to provide a quality service that meets member needs. Any savings or surplus is reinvested into the sector. A full review of LGA Training activities will be undertaken during 2019/20. This will include visitation to all member Councils to build a stronger understanding of members training needs. This will inform a comprehensive training needs analysis and the development of a new strategic business plan to effectively respond to members’ needs. This will include a review of training courses offered, how they are marketed, delivered and a revision of the pricing structure. The current fees set by LGA Training are based on the duration of the course provided (i.e. 1/2 day; 1 day and 2 days), with discounts offered for multiple participants attending from the one council. The fixed fee, based on duration, means that some courses may subsidise others. Member feedback about training courses is sought after each session. Courses average a rating of over 4 out of 5 for value for money. LGA Training aims to reduce the cost of courses provided to its rural members by undertaking a significant number of face-to-face courses outside the metropolitan area, by providing an increasing number of webinars and on-line training, and offering discounts for multiple councils participating in hub sessions. These initiatives reduce the cost of accommodation, travel and other out of pocket expenses associated with travelling to Adelaide for courses. The LGA will seek to recover all direct LGA Training costs (including direct labour, materials, project support, software and contractors) and contribute to all LGA indirect costs (including office space, ITC, marketing, and supervision) and overheads (including HR, finance, and records costs). Regional training is provided at the same cost as training provided in the metropolitan area with any additional accommodation and travel cost subsidised by councils participating in the training. Where a regional course has been custom designed for a single council, the council involved will be required to pay all accommodation and travel costs associated with that LGA Training activity. Where possible, and where programs are provided on a state-wide basis, the total cost of the state-wide program will be divided equally amongst participants. There will be times when the LGA may choose to subsidise LGA Training services either as a result of receiving external funding to provide a course, or from a deliberate decision by the

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LGA that a course is of such benefit to the sector that it should be subsidised from the LGA’s membership subscriptions; or for a strategic or commercial reason.

Emergency Management development activities The LGA provides a number of training and development opportunities to members in the field of emergency management. These include training in i-Responda essentials, training around specific hazards such as flooding and bushfire, training to support the operations of the Local Government Functional Support Group and general emergency management training. The LGA and the LGASA Mutual Pty Ltd (managers of the LGAWCS & LGAMLS) recognise the importance of council staff being able to assist in emergency situation and the requirement for council staff to have the skills, knowledge and training to enable them to operate in this environment. As such, subject to the funding made available by LGASA Mutual P/L, the LGA will provide i-Responda essentials free to any council or group of councils that require it. All other training in emergency management will be provided on a cost recovery bases. These courses can be tailored to suit the individual or group of councils needs and can be charged at a per participant or per session basis, depending on the specific requirements of the council/group. Where possible, in order to keep the cost down for emergency management training, the LGA will seek the work with council to obtain council provide venues and catering and will use volunteer trainings were appropriate/possible.

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Events The LGA provide a number of key events each year including:  Minor events, briefing sessions and topical issues discussions  LGA Conference and Annual General Meeting  Council Next Practice Showcase and LGA Ordinary General Meeting  LGA Roads & Works conference The following is a summary of the LGA’s pricing schedule in relation to the major events it hosts each year.

Activity Details

Minor Direct external costs of holding sessions is charged to participants. Events/advocacy Cost determined on a case by case basis. sessions LGA Conference Direct costs of holding the major events, LGA Conference & AGM; & AGM Council Next Practice Showcase & OGM & LGA Roads & Works Council Next Conference are offset by the sponsorship raised and registration fees. Practice Showcase and OGM These events are run on a on a break-even basis.

LGA Roads & Works Where sponsorship gained and registrations received exceeded the conference budget then surplus funds are moved into the operational budget. Minor events, Public Affairs/Advocacy Sessions (Meetings, seminars, briefings, forums etc.) These include any public affairs/advocacy issue/topics, Presidents forums, updates on new legislation or requirements or topical issues forums. Minor events/public affairs/advocacy sessions (seminars, briefings and forums) are generally recognised as a cost of doing business. As such, the LGA will only charge its member councils the direct external costs of holding these sessions such as venue hire, speaker costs, catering etc, where appropriate. There will be times when the LGA may choose to subsidise or provide free of charge some minor events/public affairs/advocacy sessions either as a result of receiving external funding to provide a session, or from a deliberate decision of the LGA that the session is of such a benefit to the sector that it should be subsidised from the LGA’s membership subscriptions, or through sponsorship by a third party.

Major Events: LGA Conference & AGM; Council Next Practice Showcase and OGM & LGA Roads & Works Conference Unlike meetings or seminars, conferences by their nature can carry significantly more risk. These include financial risks in that many significant costs are carried up-front and are often pre-paid. This outlay for elements such as venue hire, AV services, meals for attendees, fees

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for topical speakers and their travel and accommodation costs, hire of booth structures, tables & chairs for sponsorship firms and other costs incurred to hold a major event require a minimum number of attendees to ensure that these costs are recouped. The LGA seeks to reduce the cost of these events to members by offering commercial sponsorship opportunities. The LGA, offers a range of sponsorship opportunities, which are detailed in its annual ‘LGA Sponsorship Proposal’. The levels of sponsorship for the Conference & AGM and Showcase & OGM are outlined in Appendix 3. The LGA will seek to recover all direct conference costs (including direct labour, materials, project support and contractors) and contribute to all LGA indirect costs (including office space, ITC marketing, and supervision) and overheads (including HR, finance, records costs) with the addition of a mark-up on the cost to cover a margin for risk The margin acknowledges that some conferences financial returns can fluctuate because of attendance numbers and costs can fluctuate which can affect the profitability. The margin provides capacity to the Events team to remain sustainable and to potentially reinvest some surpluses into subsidising further events. In addition to the general delegate pricing to these conferences, the LGA will also offer the following pricing options: External Delegates: Non-government or non-members may, at the discretion of the relevant Executive Director or the CEO, be charged an additional premium for attending. Discounts: Individuals who directly contribute to a conference program as a speaker or workshop presenter may be extended a 100% discount for the day on which they are presenting. Other additional incentives to attract an un-paid speaker may be offered at the discretion of the CEO. Discounts for multiple delegate registrations will not be offered unless authorised by the CEO. Special discounted rate - LGA Members only - If your council registers additional delegates (for the LGA Conference & AGM and Council Next Practice Showcase & OGM e.g. more than the number it sent to the previous similar event the year before) they will receive one free registration.

 In addition, for every four delegates you register for the full event (both days and dinner) the fifth registration is free.

 Please note that the free registration only applies if you register for the full conference & full showcase events (both days & dinner).

 Stand-alone conference meals / dinners: When a non-conference guest, such as a partner or casual visitor, seeks to join a conference, meal pricing is to be at full cost recovery including a 10% margin. Meal costs for all delegates may be off-set through sponsorships.

 The CEO has the ability to offer appropriate incentives to encourage attendance, where registration numbers are significantly lower than expected.

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IT/ESP The LGA provides an Electronic Services Program to its members which focuses on the delivery a number of core projects including:

 Content Management System (LGA Squiz platform (formally Unity CMS))

 My Local Services App

 SA Tenders & contracts Other Services

LGA Squiz platform Content Management System The LGA has provided the Unity dynamic web site platform / Content management System (CMS) to councils for many years. During 2018/19 the LGA undertook an evaluation of the platform, went to tender for potential replacements and engaged Squiz as its preferred provider/product. The LGA commenced rolling this product out to council’s in 2019/2020. Squiz Matrix offers South Australian council’s a flexible and dynamic platform for digital engagement. Using the Squiz Matrix platform, councils can offer quality digital experiences by seamlessly transforming complex content into personalised applications and services that create meaningful user interactions. As a result of a thorough procurement process by the LGA, the Squiz Matrix platform is offered to South Australian member councils at a highly competitive rate while providing access to a world class suite of website delivery and customer engagement technology. The pricing tiers reflect the usage of website platforms hosted by councils (based on Unity) and provides councils of varying size (based on population) with a fixed annual cost for budgeting purposes.

Pricing tier Population *i Annual licence, hosting, Inclusions support, usage Enterprise 100,001 + 15,800 (ex GST) 6 Sites Large 20,001 to 100,000 11,800 (ex GST) 4 Sites Medium plus 15,001 to 20,000 8,800 (ex GST) 3 Sites Medium 7,001 to 15,000 7,800 (ex GST) 3 Sites Small 5,001 to 7,000 4,800 (ex GST) 2 Sites Extra small Up to 5,000 3,800 (ex GST) 2 Sites

Annual increase The annual licence, hosting, support, usage and additional websites will increase by CPI + 1% year on year and be reviewed as required.

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Additional costs Additional websites can be purchased: $1,725 (ex GST) per annum for one additional $4,500 (ex GST) per annum for three additional websites

My Local Services App The My Local Services App has been developed by the LGA on behalf of its members. Ongoing support, including any additional costs for spatial mapping and development are incorporated in the cost charged to councils for the CMS product.

SA Tenders and Contracts The LGA is charged a per-tender placed fee by the State Government’s Shared Services for councils lodging a tender on the SA Tenders and Contracts system www.tenders.sa.gov.au. The LGA is also charged for the cost of Advertising for the weekly Composite Ad paced in The Advertiser on a Tuesday. Councils are charged the following amounts by the LGA:  $55 (ex GST) for on-line or selective tenders placed, and  $325 (ex GST) for a line Ad in the weekly Composite advert

Other IT Services The LGA also provide a range of other ITC services including:

 Synergy On-line Transaction platform - The Synergy Online service is provided to councils running the LGA Squiz platform and IT Vision’s Synergy Soft that choose to deploy integrated on-line payments and on-line transactions. The LGA run a separate cloud based server and provide support to councils running this service. Councils are charged a hosting, maintenance and support fee.

 Videoconferencing - Costs for the videoconferencing and webinar equipment and broadband connection are covered by the LGA Information Technology budget. The Electronic Services Program team charge a fixed hourly fee for internal ($78.10/hr) and external ($154/hr) use.

 Training - Face-to-face Unity training is provided to council’s onsite or at the LGA for the cost of $140/hour (ex GST). Additional costs of flights, car-hire, and accommodation are charged at cost if travel is required. On-line Unity training is provided to councils via TeamViewer for the cost of $50/hour (ex GST). Commercial Services The LGA is expanding its commercial services in order to reduce its reliance on member subscriptions and to expand the range of services available to members.

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Each new service is required to have its own business case. The business case will consider the current market for the new service, its competitors, current pricing of the service in the market, expected demand for the service, the expected cost of the service and the risks involved with the service. It is acknowledged that new services will take time to establish. It is also expected that new commercial services will be required to retain some of its revenue to reinvest in the new service; to be used as seed funding for other new services; and to act as a buffer should the service experience any difficulties in the future. Each individual new service will have its own fee structure. This will be outlined in the business case for each service. Revenue may be derived by commission based fees, charging a fee-for-service, or facilitating a service which is provided by and charge by a third party. In all cases the method used to determine the pricing of a service and why the LGA has chosen to price the service in will be clearly outlined in the relevant service’s business case. The business case for new services will consider pricing of the service when compared to potential competitors in the market. The aim of the Commercial Division is to provide a superior service to its members that is below the cost of that service in the market, while still delivering value to the member council and a potential dividend to the LGA. There will be times when the LGA may choose to subsidise some commercial activities, either as a result of receiving external funding to provide an activity or from a deliberate decision of the LGA that the activity is of such a benefit to the sector that it should be subsidised from the LGA’s membership subscriptions.

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Appendix 1: Summary of LGA services & pricing Strategic Plan Reference Pricing Methodology Service Areas Services Member Advocate Assist Advance Subsidized Fee-for-Service Subscription LGA Secretariat ALGA membership Advocacy Careers in Council Commercial Activities Enews LGA Corporate Governance LGA Website Local Government Communicators

General Network Services Networking Online Services Service Certificates & Awards State Wage Case Statutory Fees and Charges Support of Regional Local

Government Associations Intergovernmental Relations Campaigning and advocacy Marketing/ Events Media & Events Media Advice Media Coverage Code of Conduct Delegation Template Governance Network Governance & Governance Panel Legislation Policies and Guidelines Standard Operating Procedures &

Templates

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Strategic Plan Reference Pricing Methodology Service Areas Services Member Fee-for- Advocate Assist Advance Subsidized Subscription Service Building Upgrade Finance Planning Reform Planning Templates Development Guide Local Government Planners' Kit Planning & Standard Section 51 Bonding Development Agreement Housing & Urban Developments Planning & Development Resources Heritage & Planning 30 Year Plan for Greater Adelaide Industry Benchmarking Research & Research & Development Scheme Publications Research & Development Projects LGA Surveys Resources Banking Insurance Schemes Model financial statements Financial Sustainability Program Asset Management Shared Services Local Government Reform Finance Fair Federal Funding Pensioner Concessions Council Rate Resources Rate Capping SA Local Government Price Index

(LGPI) State & Federal Government Budget

submissions

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Strategic Plan Reference Pricing Methodology Service Areas Services Member Fee-for- Advocate Assist Advance Subsidized Subscription Service Special Local Roads Program Supplementary Road Funding State Local Government Infrastructure Partnership Transport & Power Lines & Vegetation Infrastructure National Heavy Vehicle law support Transport Advisory Panel Roads & Transport advice and policy Guidelines HACC Funding commitment Public Health Program Libraries Liquor Licencing Community Engagement Aboriginal Affairs Community Art & Culture Aging Volunteers Community Well Being Disabilities Liquor licencing

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Strategic Plan Reference Pricing Methodology Service Areas Services Member Fee-for- Advocate Assist Advance Subsidized Subscription Service Documents Economic Development Initiatives China Engagement Small Business Regional Development Economic Tourism Development Mining Economic Development Research & Resources Local Infrastructure Local Government in Live Music Natural Resource Management Climate Change Emergency Management Energy Efficiency Audit Stormwater Management Environment Environmental Protection Native Vegetation Waste & Recycling Illegal dumping tool kit Local nuisance & little control

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Strategic Plan Reference Pricing Methodology Service Areas Services Member Fee-for- Advocate Assist Advance Subsidized Subscription Service Squiz IT/ESP My Local App Electronic Services Program i-Responda Human Recourse Management Organisational Development People & Industrial Relations Culture Regional Youth Traineeship Program CEO Salary Survey Workforce Planning Legal Services Travel Booking Commercial Public Lighting Services Human Resource Media Services Energy Audit Services Education and Training Programs Education & Sector Morale and Leadership Program Training Social Media Training Diesel Fuel Rebate LGA Directory Professional development and Tools LGA Tendering – General tender costs Procurement Tendering – General contract savings Tendering –Electricity Tendering – Fee for Service CMWS

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Appendix 2: Members Subscription Fees 2019/20 LGA Subscriptions LGA Subscriptions Members 2019/20 2018/19 $ $ Adelaide, City of $85,277 $88,795 Adelaide Hills Council $51,753 $51,194 Adelaide Plains $19,596 $17,314 Alexandrina Council $45,617 $44,517 Anangu Pitjantjatjara Yunta $9,797 $8,455 Barossa Council $41,236 $40,057 Barunga West DC $12,222 $10,320 Berri Bamera Council $23,405 $22,683 Burnside, City of $56,242 $55,796 Campbelltown City Council $59,795 $59,261 Ceduna DC $15,295 $13,838 Charles Sturt, City of $90,848 $92,240 Clare & Gilbert Valleys Council $22,867 $20,550 Cleve DC $11,488 $9,719 Coober Pedy DC $16,881 $15,487 The Coorong DC $19,499 $17,337 Copper Coast DC $33,159 $29,853 Elliston DC $10,699 $8,853 Flinders Ranges Council $10,664 $9,176 Franklin Harbour DC $10,125 $8,902 Gawler, Corp of the Town $35,172 $33,876 Goyder Regional Council $16,599 $14,795 Grant DC $20,530 $18,785 Holdfast Bay, City of $60,033 $60,153 Kangaroo Island Council $18,787 $17,513 Karoonda East Murray DC $9,809 $8,620 Kimba DC $10,075 $8,565 Kingston DC $12,309 $10,509 Light Regional Council $27,875 $26,208 Lower Eyre Peninsula DC $17,261 $15,304 Loxton Waikerie DC $26,322 $26,036 Marion, City of $79,482 $84,985 Mid Murray Council $25,042 $23,106 Mitcham, City of $69,208 $71,107 Mount Barker DC $50,053 $47,995 Mount Gambier, City of $38,048 $36,671

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LGA Subscriptions LGA Subscriptions Members 2017/18 2018/19 $ $ Mount Remarkable DC $13,701 $11,821 Murray Bridge, Rural City of $39,015 $38,261 Naracoorte Lucindale Council $22,961 $21,655 Northern Areas Council $16,869 $14,844 Norwood Payneham & St Peters, City of $50,377 $50,286 Onkaparinga, City of $108,608 $104,119 Orroroo / Carrieton DC $9,439 $7,989 Peterborough DC $11,037 $9,550 Playford, City of $81,494 $86,322 Port Adelaide Enfield, City of $90,803 $92,420 Port Augusta, City of $36,064 $36,470 Port Lincoln, City of $26,717 $25,733 Port Pirie Regional Council $31,146 $30,408 Prospect, City of $31,871 $31,047 Renmark Paringa DC $21,068 $19,003 Robe DC $12,132 $10,508 Roxby Downs, Municipal Council $19,976 $18,101 Salisbury, City of $94,387 $94,987 Southern Mallee DC $12,921 $11,033 Streaky Bay DC $13,775 $12,013 Tatiara DC $20,287 $18,900 Tea Tree Gully, City of $81,098 $86,411 Tumby Bay DC $12,769 $10,928 Unley, City of $53,839 $53,527 Victor Harbor, City of $30,345 $29,378 Wakefield Regional Council $19,812 $17,894 Walkerville, Corp of the Town $18,297 $15,887 Wattle Range Council $28,112 $27,176 West Torrens, City of $68,582 $75,805 Whyalla, Corp of the City $36,119 $36,442 Wudinna DC $11,156 $9,204 Yankalilla DC $19,188 $17,053 Yorke Peninsula DC $30,657 $29,558

Total $2,337,694 $2,283,305

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Appendix 3: Other fees & charges 2019/20

*All fees are GST Inclusive Service Services 2019/20 Fee 2018/19 Fee Area

Half Day Training $363.00 $363.00  Per Participant $330.00 $330.00  2 to 5 Participants $313.50 $313.50  6 to 10 Participants By Neg. By Neg.  11+ Participants

Full Day Training $473.00 $473.00  Per Participant $429.00 $429.00  2 to 5 Participants $401.50 $401.50  6 to 10 Participants By Neg. By Neg.  11+ Participants

Two Day Training $748.00 $748.00  Per Participant Education $676.50 $676.50  2 to 5 Participants $638.00 $638.00 & Training  6 to 10 Participants By Neg. By Neg.  11+ Participants

One Day Forum $517.00 $517.00  Per Participant $467.50 $467.50  2 to 5 Participants $445.50 $445.50  6 to 10 Participants By Neg. By Neg.  11+ Participants

Two Day Forum $808.50 $808.50  Per Participant $726.00 $726.00  2 to 5 Participants $687.50 $687.50  6 to 10 Participants By Neg. By Neg.  11+ Participants $110.00 $110.00  Additional Dinner Guests

Service Services 2019/20 Fee 2018/19 Fee Area

Unity Web Site Hosting Refer page 17 for $2,200  Small council’s Squiz fees $4,400  Large Councils $660  Support Fee $22  Bandwidth rate ($/MB) $132  Database Charge ($/gig)

Unity Training $55/hr $55/hr  Online training $144/hr $144/hr  Face to Face (ex. Travel & Accommodation costs)

My Local Services App IT/ESP $1,100  Small councils $2,200  Large Councils $3,850  Non-Unity Councils $990 SynergyOnline

SA Tenders $60.50 $60.50  On-line or Selective Tender Places $375.50 $375.50  Line add in weekly composite Ad

Video Conference Facilities $78.10/hr $78.10/hr  Internal Programs $154/hr $154/hr  External use

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Service Services 2019/20 Fee 2018/19 Fee Area Major Events At Cost At- Cost Member N/Member Member N/Member LGA Conference and Annual General Meeting – ex GST  Full event pass (both days & dinner)  Full conference pass (excludes dinner)  Day 2 pass TBD TBD  Day 1 pass  Conference Reception pass Member N/Member Member N/Member Council Next Practice Showcase and LGA Ordinary General Meeting – ex GST  Full event pass (both days & dinner)  Full conference pass (excludes dinner)  Day 1 pass TBD TBD  Day 2 pass Events  Dinner pass Member N/Member Member N/Member Local Government Association Roads & Works conference  Full event pass (both days & dinner)  Full conference pass (excludes dinner)  Day 2 pass TBD TBD  Day 1 pass  Pre-Conference Reception pass

Sponsorship* Platinum Gold Silver Bronze TBD Exhibitor *5% discount per event if sponsor for 2 events; 10% if sponsor 3 events

Service Areas Services 2019/20 Fee 2018/19 Fee Governance Panel Governance  Initial Assessment $375 $375  Investigation Individually Assessed Individually Assessed Service Services 2019/20 Fee 2018/19 Fee Areas Participant Session Participant Session i-Responda  Essentials N/A $0* $0 $0  Essentials (Refresher) N/A $0* $0 $0  Bushfire - Working on the fire ground N/A $1,200 $0 N/A $550 $0 Emergency  Bushfire - Plant Operators  Working around Flood & Fast Moving Water N/A $250 $0 Management  Hazardous Materials - Personal Safety N/A $750 New Development Information Session - Personal Bushfire Safety N/A $500 $500 Information Session - Workplace Bushfire Safety N/A $500 $500 Recovery - Essentials $150 N/A Online Emergency Management Training $35 N/A Exercise Management $100 N/A Incident Management $200 N/A Other Emergency Management Training POA POA * Subsidies by LGA & LGASA Mutual P/L

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6.7 LGA Advocacy Update

LGA Business From: Lisa Teburea, Executive Director Public Affairs Key Initiative: K.I 1 Leadership and advocacy Strategy: 1B Contribute to state-wide and local policy Meeting: Annual General Meeting 31 October 2019 ECM: 688848 Attachments: 687104, 689217

Recommendation That the Annual General Meeting notes the report.

Discussion This report provides an update on some of the key activities being undertaken by the LGA to advocate on behalf of our members and strengthen the value of LGA membership and a strong, united local government sector. LGA Advocacy Plan 2019-2023 In September 2019 the LGA Board of Directors endorsed an LGA Advocacy Plan 2019-2023. A copy of the Plan is provided as an attachment to this report. The purpose of the Plan is to define and prioritise the LGA’s advocacy agenda to increase certainty and transparency for members about the outcomes the Association is pursuing on their behalf, and to ensure that sufficient resources are available to progress and monitor these important issues. The plan will help the LGA to deliver a focussed and effective advocacy agenda over the next four years. The Advocacy Plan sits alongside the LGA’s Strategic Plan, Annual Business Plans and Policy Manual as an important part of the LGA’s Strategic Management Framework. It will guide decision making about the prioritisation of resources, assist in identifying partnership opportunities with key stakeholders and enhance our accountability to our members. The Plan’s four-year horizon recognises that effective, evidence-based advocacy can take time. Advocacy activities need to be carefully timed around key events such as State and Federal Government budgets and election cycles. The advocacy priorities set out in the Advocacy Plan have been informed by our members through AGMs and OGMs, annual surveys, general meetings, the LGA Board of Directors, and the SAROC and GAROC committees. They also reflect legislative and policy reforms being undertaken by the State and Federal Government that are relevant to the role of councils and impact on local communities. While the LGA uses best endeavours to forecast the key issues that will need to be addressed over the coming years, there will always be new issues for local government that emerge during the life of this plan that require an advocacy response from the LGA. The Advocacy Plan will be monitored quarterly and updated annually to allow for reprioritisation of the LGA’s work plan as new issues emerge, issues evolve, or as member priorities change.

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Local Government Reform At the Ordinary General Meeting in April 2019, the LGA membership committed to working with the Parliament of South Australia to deliver sensible and effective reforms that will drive downward pressure on council rates, improve the financial sustainability of councils, and deliver lasting benefits to South Australian communities. Following an initial round of consultation seeking ideas for local government reform, the Office of Local Government (OLG) released a discussion paper in August 2019 with 72 proposals for regulatory change. A week later, the LGA released its own discussion paper to help facilitate discussion in the sector. The LGA’s paper identifies that there are several government reform proposals that are consistent with the sector’s position, and also highlights that there are some ideas that are not likely to be supported by councils. The LGA has facilitated a series of workshops across the state to assist councils in preparing their positions on local government reform. The OLG were invited to present at each of these workshops, remained available to answer questions and were able to hear the deliberations of the sector. From these discussions, the State Government now has a better understanding of the cost burdens of the current and proposed regulatory regime. The LGA has also engaged with the LG Financial Management Group, the Governance and Professional Officers Network, individual councils and council officers during this consultation process. In September 2019, Minister Knoll publicly praised the sector for the positive and mature way it had engaged with the reform process. Decisions of councils are directing the content of the LGA’s formal submission and its ongoing advocacy to the OLG, the Minister and other parliamentarians. The Government’s rate capping Bill was defeated in the Upper House in July 2019 with Labor, SA BEST and Greens SA maintaining their pre-election commitments to oppose this legislation. The ‘Ratepayer Protection’ Bill introduced in the Upper House by the Labor Party with support from SA BEST and Greens SA was voted down by the Government in the lower house in May 2019. With these matters now dealt with, the LGA will continue working constructively with all political parties to achieve a sensible and effective local government reform program. South Australian Productivity Commission Local Government Inquiry The South Australian Productivity Commission (the Commission) has been asked to examine the trends in local government costs and efficiency and the drivers behind these trends. The Inquiry has been conducted in two stages with Stage 1 commencing with the release of a Methodology Paper by the Commission. The LGA developed two submissions in response to the Methodology Paper. The first sector-wide submission focussed on where the sector has come from and the challenges faced whilst the second submission built on the first and included tangible examples of external pressures on councils. The second submission also built the case for our sensible plan for local government reform and expanded on how the measures proposed will improve efficiency, transparency and accountability. The LGA produced a short video summarising the key points from our submissions, which is available to view here.

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The Commission released their draft report on 30 August 2019. The report showed that when compared to each other SA councils are achieving a high rate of relative efficiency and that the sector has been working hard to improve its financial performance. The report also identified some areas of improvement for both the State Government and councils, including a draft recommendation for the introduction of sector-wide benchmarking in alignment with the LGA’s submissions. The LGA has welcomed the Commission’s focus on the impact that State Government decisions have on councils and their ratepayers and the draft recommendations that the State Government examine and ameliorate unnecessary impacts that the Government’s decisions have on council efficiency and clarify the scope of local government’s activities. A further round of consultation with stakeholders is being undertaken, following which the Commission will consider all feedback, finalise its views and submit its final report and recommendations to the Premier by 22 November 2019. The LGA has held a number of consultation sessions to provide members the opportunity to engage directly with the Commission. Waste and Recycling Waste and recycling continues to be an area of focus for the LGA to support councils with the impacts of the China National Sword Policy. An LGA Waste Action Plan was adopted in June 2019, which outlines the local government sector’s views on the actions needed to:  stabilise the waste industry;  ensure the ongoing commercial viability of recycling services; and  establish a circular economy as a means of achieving sustainability in waste management. The key messages in the plan include:  all levels and government and communities must participate in the circular economy in order to be truly sustainable;  the biggest opportunity to tackle our nation’s waste problem is at the front end of the production and consumption process; and  we must all participate in and promote the use of materials that circulate through our economy again and again, providing ongoing value, efficient use of resources and knowledge-based jobs for the future. The key messages and positions in the Waste Action Plan have been used to inform the LGA’s advocacy activities, including a written and verbal submission to the Parliament’s Inquiry into the South Australian Recycling Industry. The recommendations made in this submission are summarised below. 1. That all spheres of government seek to increase transparency in the waste and recycling industry and improve “waste literacy”: 2. That the South Australian Government amend the Container Deposit Scheme. 3. That the South Australian Productivity Commission, or another body, investigate the potential costs and benefits of regulating waste and recycling as “essential services” in South Australia. 4. That the South Australian Government: a. freeze the solid waste levy for 2019-20 and beyond at its 2018-19 level of $100 a tonne for metropolitan councils and $50 a tonne for regional councils; and

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b. commit to making 50% of the money paid into the Green Industry Fund by local government each year available to councils for worthwhile waste and recycling initiatives; 5. That Federal and/or State Governments partner with industry to develop a clear and credible national accreditation system for circular-use products. 6. That the South Australian Government explore action to achieve statewide consistency in waste management services by financially supporting all councils to provide a landfill, recycling and food and green organics (FOGO) service to their communities. 7. That the South Australian Productivity Commission, or another body, review the efficiency and effectiveness of the kerbside-collected three bin system. The LGA has launched a circular procurement pilot project, with participating councils signing an MOU to prioritise purchasing products made from recycled materials, and track and report on progress back through the LGA. Examples of products made of recycled materials that can be purchased by councils include road and construction materials, street furniture, bollards, office stationery and compost. This MOU sends a clear message to the industry about the type of products councils want to purchase as part of their commitment to supporting the environment and improving their sustainability. The project is supported by funding from Green Industries SA and the participating councils are Adelaide Hills, Burnside, Charles Sturt, Mount Barker, Murray Bridge, Norwood Payneham & St Peters, Onkaparinga, Port Adelaide Enfield and Prospect. Solid Waste Levy The sector has also needed to respond to the surprise announcement in the 2019/20 State Budget that the Solid Waste Levy would increase by an unprecedented 40% on 1 January 2020. This increase is projected to cost ratepayers an additional $8.5 million this financial year and brings the total levy paid by councils to around $42.5 million. The sector mobilised quickly on this issue with a strong media response and the LGA rolled out a ‘Bin Tax’ campaign to raise public awareness of this cost impost. The campaign included social and digital media advertising, a public website, inserts for council rate notices and other campaign materials for councils to use in their community communications, a public survey and media and stakeholder briefings. Despite strong criticism from councils, the media, members of parliament and some members of the community, the Government has not reversed its decision to implement the increase. The LGA will continue to advocate for the levy to be frozen and for at least 50% of the funds collected from councils to be returned to local government for local waste and recycling infrastructure and programs. Planning and Heritage The implementation of the Planning, Development and Infrastructure Act is a priority area of interest and concern for many members. The reform program has a lot of different aspects and the LGA has invested significant resources in keeping councils informed and engaged and representing the interests of the sector. Recent advocacy has focussed on heritage and character and the Government’s position that existing Contributory Items will not be transitioned to the new Planning and Design Code. Working

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with GAROC, an LGA Heritage Position Paper was adopted. The position paper makes the following three recommendations in relation to heritage reform: 1. That current heritage classifications and protections including Historic Conservation Zones/Policy Areas and Contributory Items be transitioned in their current form into Generation 1 of the new planning system. 2. That the State Government implement, in consultation with local government, the recommendations of the final report of the Environment, Resources and Development Committee’s Heritage Inquiry. 3. That the State Planning Commission engages with local government on the detail of the Planning and Design Code as it relates to heritage and character and, in particular, demolition control. The position paper has been widely circulated to members, stakeholders and the media and is consistent with the views being expressed by community groups and other advocacy organisations with an interest in heritage. The various Planning, Development and Infrastructure Regulations that have been released have also been a focus as they outline the detail of how the new planning system will operate. The LGA has supported councils with information sessions, legal advice and numerous submissions. Several of the issues raised by the LGA have been addressed in the final Regulations, including:  public notification of development applications  information requirements  assessment timeframes  definitions of exempt development However, there are a number of outstanding issues that have not been addressed and a disallowance motion has been moved by the Opposition in the Legislative Council given the strong concerns raised by the LGA and other stakeholders. Recent submissions made on planning and heritage can be viewed at www.lga.sa.gov.au/submissions Regular briefings are provided to the State Planning Commission, Members of Parliament, media and other stakeholders. The LGA is represented on the Minister for Planning’s Liaison Group by Mayor David O’Loughlin and Ms Lisa Teburea, Executive Director Public Affairs. The release of the draft Planning and Design Code will be a focus on the LGA’s engagement with members and advocacy to the State Government over the coming months. At the request of SAROC, the LGA has recently written to the State Planning Commission requesting that the consultation timeframe for regional councils on the Code be extended to align with the consultation timeframe provided for metropolitan councils. NRM Levy At the request of members, the LGA has been pursuing changes to State Legislation to remove the obligation on councils to collect and pass on the State Government’s NRM Levy. There are administrative costs to councils in chasing payments, and in 2016 there was almost $700,000 owed to our sector in unpaid levies. Additionally, many ratepayers mistake the Levy for a local government tax and criticise councils for NRM increases they have no control over. In September we moved one step closer towards removing this burden on councils, thanks to amendments to Landscape South Australia Bill that passed through the Upper House.

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Councils shouldn’t be forced to collect taxes for the State, and we’re pleased that SA-BEST, the Greens and Labor were able to work together to secure the amendments that propose the removal of this requirement. The amended Bill returned to the Lower House where unfortunately the Government did not accept the levy amendments passed by the Upper House. The Bill will now be reconsidered by the Upper House and a conference of both Houses will need to be held if an agreement on the levy amendments cannot be reached. The LGA will continue to work with all political parties to seek an outcome in line with the sector’s position that the State should collect its own levy. Submissions As a process improvement, the LGA has established a webpage where members can access all recent submissions in one place – www.lga.sa.gov.au/submissions Over the past 6 months, submissions have been made on topics such as local government reform, planning, heritage, regional development, infrastructure, housing and homelessness, thermal energy from waste, health and wellbeing, aged care and arts. The LGA’s Policy Manual has also been enhanced and is available online at www.lga.sa.gov.au/lgpolicymanual Member Forums and Workshops Bringing members together to share information and seek feedback on topical issues has been made easier with the investment in Zoom videoconferencing and webinar facilities. This has been particularly helpful in enabling participation by regional members in forums and events held in Adelaide. Forums and workshops with members have been held a wide range of topics over the past 6 months, including the following:  Local government reform (6 regional and 3 metropolitan sessions)  Productivity Commission Inquiry (multiple sessions)  Planning, Development and Infrastructure Act (monthly sessions)  Animal detention services  Telstra payphones  Local Nuisance and Litter Control Act Review  Landscapes SA legislation  Tourism  Public Interest Disclosure Act  Boundary reform  Waste and recycling  National Heavy Vehicle Regulator  Waste reform  Media and communications  Volunteer management  Smart cities

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Media Summary A summary of LGA’s media activities between April 2019 and October 2019 is attached for members’ information. Key issues the LGA has commented on publicly include waste and the Solid Waste Levy, planning and heritage and local government reform opportunities.

Financial and Resource Implications Developing the evidence base and third-party support needed to successfully pursue legislative, policy or funding changes requires a significant investment of time and resources in data collection and analysis, policy research, consultation with members, stakeholder engagement, policy development and positioning through an advocacy strategy. Given the breadth and diversity of the issues that are important to the LGA’s member councils, the LGA is investing its available resources in pursuing the outcomes of the highest priority to members and deliver the greatest value to councils and communities. Attempting to address too many issues at the same time limits the focus that can be given to each issue and can dilute or confuse key messages for decision makers, stakeholders and the community. The adoption of the LGA Advocacy Plan allows the LGA to be more strategic by defining the parameters of the LGA’s advocacy activities and ensuring that adequate resources are available to give important issues the time and attention required to achieve the outcomes desired by members. The Plan provides a useful guide to the Board of Directors, SAROC and GAROC when assessing the importance and urgency of any new issues raised. There are many policy issues that the LGA is working on that are not included within this update or the Advocacy Plan. These may be issues where the LGA is providing support to members through training, forums, guideline material, model policies, advice or information exchange. These services fall under the LGA’s ‘Assist’ objectives, as reflected in the LGA’s Strategic Plan and Annual Business Plan.

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LGA Advocacy Plan 2019 – 2023

September 2019

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The object of the LGA is to achieve public value through the promotion and advancement of the interests of local government by advocating to achieve greater influence for local government in matters affecting councils and communities. The LGA is at the forefront of strategic policy development and reform in the local government sector. We seek to achieve influence for local government in matters affecting South Australian councils and their local communities. We do this by listening to and representing our 68 member councils and building positive relationships with people and organisations with an interest in or influence over matters of importance to local government. There is significant value in the leadership and advocacy driven by the LGA in partnership with our member councils. The LGA Value of Membership 2019 report highlighted the estimated benefit of LGA led or supported advocacy to the sector was over $64 million, an individual benefit of $1.2 million to participating councils. Recent significant advocacy outcomes the LGA and our member councils have achieved include securing support of the South Australian Parliament to protect local services and decision making by not introducing rate-capping and the removal of council requirements to pay rubble royalties to the State Government. At the national level, working with the Australian Local Government Association, we have secured the Commonwealth Government’s commitment to extend South Australia’s supplementary local roads funding to 2021 and extend the aged care Home Support Care Package block-funding until 2022. Speaking with one voice through the LGA gives the local government sector and SA councils a ‘seat at the table’ with decision makers. This means that our communities can enjoy the benefits of governments working in partnership towards common objectives. Councils that are adequately resourced and supported by an enabling and contemporary state legislative framework are a strong partner in government and can make a great contribution to the economic and social progress of South Australia. 2019 – 2023 Advocacy Plan The purpose of the LGA Advocacy Plan 2019-2023 is to define and prioritise the LGA’s advocacy agenda to increase certainty and transparency for members about the outcomes the Association is pursuing on their behalf, and to ensure that sufficient resources are available to progress and monitor these important issues. The plan will help the LGA to deliver a focussed and effective advocacy agenda over the next four years. The Advocacy Plan is intended to sit alongside the LGA’s Strategic Plan, Annual Business Plans and Policy Manual as an important part of the LGA’s Strategic Management Framework. It will guide decision making about the prioritisation of resources, assist in identifying partnership opportunities with key stakeholders and enhance our accountability to our members. This Advocacy Plan is not a complete list of everything the LGA is doing on behalf of its members. The LGA provides a range of additional services that ‘Assist’ and ‘Advance’ councils, such as education and training, commercial services, guidelines and model documents, governance advice and research and development.

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The Plan’s four-year horizon recognises that effective, evidence-based advocacy can take time and the need for advocacy activities to be carefully timed around key events such as State and Federal Government budgets and election cycles. While the LGA always uses best endeavours to forecast the key issues that will need to be addressed over the coming years, there will always be new issues for local government that emerge during the life of this plan that require an advocacy response from the LGA. The Advocacy Plan will be monitored quarterly and updated annually to allow for reprioritisation of the LGA’s work plan as new issues emerge, issues evolve, or as member priorities change. 2019 – 20 Advocacy priorities and actions The issues and actions set out in this Plan have been informed by our members through annual surveys, general meetings, the LGA Board of Directors, and the SAROC and GAROC committees. They also reflect legislative and policy reforms being undertaken by the State and Federal Government that are relevant to the role of councils and impact on local communities. Local government has a broad range of roles and responsibilities, and the diversity of the sector’s interests is reflected in the LGA’s Advocacy Plan. Typically, the LGA will prioritise issues that have an immediate direct impact on local government such as changes to the responsibilities, funding and compliance obligations of councils. During the 2019 - 20 period, the LGA will dedicate most of its advocacy focus and resources towards the following priority issues:  working with the South Australian Parliament on sensible, evidence-based local government reform  seeking to secure the future funding of South Australian libraries  influencing a stronger role for councils and communities as planning reforms are implemented  responding to waste and recycling issues including maximising the value that can be returned to communities from the escalating State Government funds collected through the Solid Waste Levy  working with ALGA on a campaign to increase Financial Assistance Grants and secure long- term certainty of supplementary road funding for South Australia

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Theme: Local Government Sector Local government welcomes its role as a partner in government and shall continue to work closely with state and federal governments and other key stakeholders to seek solutions to issues that impact communities. Objective: Advocate for sensible local government reform and build the respect of federal and state government in all transactions between the spheres of government.

Issue Position Outcome sought Key Actions Lead Body

Local Government The Minister for Transport, Infrastructure and Amendments to the Act are Continue to consult extensively LGA Board Reform – review of Local Government is undertaking a review of sensible, evidence-based and with member councils and the Local local government legislation that South reflect the submissions made undertake research to prepare Government Act. Australian councils operate under. by the local government sector. LGA submissions and position papers. The LGA membership is committed to working with the Parliament of South Australia to deliver Provide regular briefings to sensible and effective reforms that will drive Members of Parliament to build downward pressure on council rates, improve support for the sector’s position. the financial sustainability of councils, and Develop public awareness deliver lasting benefits to South Australian campaigns on reform proposals communities. that are strongly opposed by members. Request an increase in State Government funding and resources to successfully implement meaningful local government reform.

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Issue Position Outcome sought Key Actions Lead Body

SA Productivity Local Government welcomes the inquiry and Recommendations from the SA Prepare detailed, evidence- LGA Board Commission - ultimately remains committed to working with the Productivity Commission that based submissions to inform the inquiry into local South Australian Parliament on sensible reforms support LGA advocacy for Commission’s inquiry. government costs that will deliver lasting benefits to communities sensible local government Facilitate engagement and and efficiency and drive downward pressure on council rates. reform – including information sharing between the benchmarking. Commission and member councils. Provide regular briefings to stakeholders on the LGA’s submissions and reform proposals that will address sector challenges. Use social media channels to build community awareness of costs pressures and efficiency measures in local government. State- Local Coordination across all governments in To enable local government to Continue to outline the benefits LGA Board Government planning, funding and delivering facilities and deliver on its potential as a of a formal partnership in Relations services can maximise the value of investments partner to advance South correspondence with the Premier Agreement by governments. This can be best facilitated Australia, the LGA is asking the and senior Government through formal structures such as the State- State Government to support a Ministers. Local Government Relations Agreement and the State-Local Government Premier’s State- Local Government Forum. Relations Agreement to provide Seek support from the SA a foundation for more A more cooperative, strategic approach to Productivity Commission for a productive state-local providing and using public infrastructure will formal agreement to guide partnerships reduce duplication, lower asset operating costs infrastructure and service and create a strong foundation for the attraction delivery between state and local of businesses and skilled labour needed for government. economic growth.

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Issue Position Outcome sought Key Actions Lead Body

NRM (Landscapes All spheres of government should be The LGA is seeking the support Seek support from the LGA Board SA) Levy collection responsible for collecting their own revenue and of the Parliament for the Parliament for amendments to have autonomy in how it is collected. Forcing necessary legislative the Landscape SA Bill to remove councils to collect and pass on the State amendments to remove the the obligation on councils to Government’s NRM (Landscapes SA) Levy is obligation on councils to collect collect the State levy. costing councils money and is often mistaken for the State Government’s NRM

additional council revenue. (Landscapes SA) Levy.

Solid Waste Levy The State Government ought to be supporting The LGA is seeking support to Continue to outline the impacts of LGA Board councils and households to respond to the freeze the Solid Waste Levy at the increased levy on councils national waste and recycling crisis. It is the 2018/19 rate and make at and ratepayers, via the LGA disappointing that the 2019-20 State Budget least half of the total levy paid public awareness campaign. contained an $8.5 million hit to councils and their by local government available Provide regular briefings to ratepayers with an unprecedented 40% increase to councils for worthwhile waste Members of Parliament to build in the Solid Waste Levy. and recycling initiatives. support for the sector’s position. Community Public housing properties transferred from the The LGA is seeking legislation Continue to explore and outline LGA Board Housing Rebates State Government to Community Housing to remove the 75% mandatory the impacts on the mandatory Providers (CHPs) receive a mandatory 75% rebate on council rates for rebate on councils and their rebate on council rates. This results in a revenue community housing providers. ratepayers. loss across the impacted councils of $4.4 million Provide regular briefings to each year for every 5,000 properties. Members of Parliament to build support for the sector’s position.

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Theme: Financial Sustainability Local government acknowledges its statutory obligation to be sustainable and that this can only be achieved through attainment and maintenance of financial sustainability. Objective: Maximise contributions, investment and the appropriate policy settings from other spheres of government to contribute toward local government financial sustainability.

Issue Position Outcome sought Key Actions Lead Body

Federal funding to The financial sustainability of councils and their Restore the quantum of Support ALGA in developing an LGA Board local government – ability to provide essential services and Financial Assistance Grants to advocacy campaign over the FAGs infrastructure in their communities is impacted at least 1 per cent of current term of Government and by the relative decline in core federal funding in Commonwealth taxation promote the use of the campaign the form of Financial Assistance Grants (FAGs). revenue in SA. Build third party support from individuals and organisations that would benefit from increased local investment. Use member communications to encourage councils to acknowledge the financial contribution of the Federal Government toward local projects. Explore opportunities to identify projects and services being delivered by councils that support the priorities and objectives of the Federal Government.

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Issue Position Outcome sought Key Actions Lead Body

Partnership Historically the LGA has focussed on 3-4 key Commitment and action from Engage with members and LGA Board Efficiency and Cost cost pressure advocacy messages however the State Government to commission a research report to Pressure Research there is an opportunity to consider cost establish a formal partnership identify opportunities for new or pressures not only in the context of areas of with local government to plan, renewed partnerships between responsibility that have been shifted to local fund and deliver facilities and state and local government. government but also in terms of gains or services Develop a methodology for the efficiencies of scale which have (or could) be collection and analysis of data realised when local government has the from councils to better quantify opportunity to work in partnership with state and the costs and benefits of state federal government and has an early ‘seat at the government decisions that table’. impact on councils. Use the data and analysis received through this work to inform LGA advocacy on key issues. Review of statutory In most cases, the fees and charges that are set Commitment and action from Continue to outline the need for LGA Board fees and charges by State Government regulations for the the State Government to adopt the State Government to conduct provision of services do not cover the cost of a policy that allows statutory a comprehensive review of local providing the service. For example, planning fees and charges to be government fees and charges to fees only cover between 20-30% of the cost of increased to achieve establish modern price setting providing assessment services, with the other reasonable recovery of costs. principles which promote 70-80% subsidised by all ratepayers. Setting efficiency, flexibility and fairness user fees and charges too low puts pressure on in service delivery; council rates and requires public funds to be Undertake analysis and prepare used inequitably for private benefits. an issues paper to inform and advocate for a review of the mandatory rate rebates that councils are compelled to provide.

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Theme: Infrastructure and Assets The LGA and our member councils recognise that with appropriate funding and partnership opportunities local government can be part of the solution in addressing the infrastructure challenges South Australia faces in ensuring liveable, vibrant and prosperous communities. Objective: Enable advocacy and partnership opportunities that supports local government to fulfil its responsibilities in a range of public infrastructure and facilities that support families and businesses, create and support economic opportunity and build community inclusion and safety.

Issue Position Outcome sought Key Actions Lead Body

Federal funding of South Australia has 11% of the nation’s local Permanent reinstatement of Develop an options appraisal and LGA Board South Australia’s roads and 7% of the population but receives South Australia’s issues paper to support future local road network only 5.5% of the Identified Local Roads supplementary local roads advocacy. component of Commonwealth Financial funding – beyond 2021. Develop and implement an Assistance Grants (FAGs). advocacy campaign at the

federal level and leverage ALGA Since 2003, successive Federal Governments support where required. have allocated supplementary road funding to Support councils to undertake South Australia as a temporary fix to an unfair advocacy activities locally. funding formula. SA councils need confidence Coordinate a delegation of and certainty that this funding is secure over the members to Canberra to engage long term. with representatives and decision makers.

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Issue Position Outcome sought Key Actions Lead Body

State funding of Local government recognises the importance of Increased State Government Incorporate this issue within the SAROC regional roads – State Government investment in the strategic funds for the maintenance and LGA’s State Budget Submission road safety road network for economic and social prosperity. upgrade of safe and high- Tour of the region hosted by quality regional roads, in line Local government acknowledges its obligation SAROC for Federal MPs to with their pre-election for the maintenance, renewal and safety of local highlight regional roads that commitment to establish a road networks. Councils shall continue to fulfil would benefit from increased dedicated Regional Roads and this obligation recognising the significant supplementary road funding. Infrastructure Fund. obligation of federal/state governments in Develop and implement actions providing financial assistance to the sector in from the LGASA Guide to Local discharging these duties. Government Road Safety Actions and Strategies. Road Maintenance South Australia’s regional councils recognise the Progress the development of a Continued engagement with SAROC – State joint responsibilities and the opportunity to plan joint agreement between DPTI and the Minister. Government for road maintenance collaboratively with the councils and DPTI to enable the Work with councils to prepare contracts State Government on local and state road establishment of an efficient case studies demonstrating the networks. road maintenance program. value of a collaborative approach.

Road South Australian councils are concerned about Establish an agreed policy on Engage with councils and GAROC reinstatement – the timeliness and quality of road reinstatements reinstating public infrastructure providers to establish essential service being undertaken by essential service providers to the satisfaction of councils consistent/model specifications. providers following their works. after completion of works and Establish a framework for remediation improvements. engaging with essential service providers. Determine and pursue the need for legislative change.

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Issue Position Outcome sought Key Actions Lead Body

National Heavy The National Transport Commission (NTC) has Ensure that the new Heavy Establish a steering group with LGA Board Vehicle Law – commenced a review of the Heavy Vehicle Vehicle National Law member councils to ensure that

review National Law and its supporting regulations. This appropriately considers and any future LGA advocacy is may have various implications for councils in reflects the role of local evidence based and reflects their role as local road managers. government and implications for operational considerations. councils. Undertake advocacy on relevant elements of the NTC consultations.

State DPTI has commenced preparation of a state- The DPTI Speed Limit Provide a local government LGA Board Government’s wide Speed Management Strategy, which will Guideline and the developing perspective by supporting DPTI’s Speed become the State Government’s overarching Speed Management Strategy consultations with member Management policy position on speed management practice for South Australia are councils as the strategy is Strategy in South Australia. supported as the basis for all developed. the work councils do in road Use LGA Guide to Local safety. Government Road Safety Recognition that changing the Strategy and Action Plan to speed limit is a quick fix and promote to councils and via does not address long-term media channels about the impact infrastructure issues. Where of speed, the difference a roads are no longer fit-for- reduction in speed can make and purpose, then they should be the need to drive to the upgraded. conditions. Continue to advocate for a holistic approach to road safety, (of which speed limits are only one part) and Government funding for road maintenance

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Issue Position Outcome sought Key Actions Lead Body

State Councils recognise, because of their Ensure that the State Provide a submission on behalf LGA Board Government’s responsibilities as road authorities, infrastructure Government’s forthcoming of member councils to the State Electric Vehicle providers, fleet managers and representatives of Electric Vehicles Strategy Government’s Electric Vehicle Strategy their local communities, can support and appropriately considers and Strategy. encourage the use of electric vehicles through reflects the role of councils in Support consultation with local their planning, policies, investment and supporting uptake of electric government and develop a procurement activities. vehicles. unified local government response to the draft Strategy when it is released. Jetties – State Local government is seeking to speak with one Ensure that future lease or Establish an LGA steering LGA Board Government voice as new lease and funding agreements for other agreements with local committee of member councils to funding and jetties are negotiated with the State government collectively inform and guide future maintenance Government. safeguard the future of jetties in advocacy. agreements South Australia without creating Develop an Issues Paper to a financial burden on clearly articulate the issues, gaps ratepayers, especially in rural and options for future funding and regional areas. and lease or other arrangements. Seek to meet with and inform stakeholders as appropriate. Mobile Phone Regional communities continue to experience Improved telecommunications Identify and map priority SAROC Blackspot – state poor telecommunications coverage across coverage in regional and blackspot areas in South and federal funding South Australia. Access to reliable mobile phone remote South Australia. Australia and internet connectivity are extremely important Identify funding opportunities for to individuals and communities in terms of councils’ submissions. every-day liveability and emergency services, and also for business operability, viability and Incorporate funding requests in sustainability. State and Federal Budget submissions.

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Issue Position Outcome sought Key Actions Lead Body

Stormwater Although stormwater management is the shared Improved governance, Develop issues and discussion LGA Board management– responsibility of state and local governments, legislation and funding paper to inform a review of state funding responsibility often falls to councils. Local arrangements to support Stormwater Management allocations government is limited in its ability to fund council responsibilities for Practices in South Australia. stormwater infrastructure or to make decisions infrastructure provision. Include requests for additional that have cross boundary implications. Work with state government to stormwater funding in State ensure an integrated approach Budget submissions. to planning and for adequate

funding of stormwater management and flood mitigation. Community Grant programs to upgrade or build State Government support for Include proposal and request for LGA Board infrastructure fund infrastructure can achieve significant local government community funding in State Budget improvements in public health and safety, social infrastructure renewal program submissions. inclusion and community wellbeing. in South Australia. Work with councils to prepare There is a need for State and local government case studies demonstrating the to invest in community infrastructure across a value of a collaborative range of activities so that assets are approach. appropriately maintained and brought up to a standard which allows equitable access for all.

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Theme: Economic Development Local government acknowledges that ensuring sustainable economic development is a shared responsibility of all spheres of government. Councils contribute identifying and implementing solutions to impacts on economic growth, while highlighting the significant responsibilities of federal and state government. Objective: Influence federal and state government activities in identifying and implementing programs that promote local aims and produce positive local outcomes.

Issue Position Outcome sought Key Actions Lead Body

State and Federal Local government acknowledges the Federal and State Government Submission to SA Regional SAROC economic development significant role that regional economies play develop and implement Growth Strategy initiatives in the economic stability of South Australia. initiatives that will assist with Minister for Regional In recognition of the specific needs of the the growth and development of Development to attend a SAROC regions, the LGA and councils seek to work regional South Australia. meeting. with Federal and State Government, Regional Development Australia Boards and Complete research that identifies key regional stakeholders to support further advocacy opportunities regional economies. and work with councils to prepare case studies demonstrating the value of a collaborative approach. Decentralisation of SA The centralisation of the public service to SAROC’s proposal is for 30% Complete research that identifies SAROC Government Services Adelaide may directly contribute to loss of of the state government public the existing and future capacity jobs and residents living and working in service to be based outside of regions to accommodate regional South Australia - a disconnect that Greater Adelaide. population growth, including an is reflected in centralised policy and decision assessment of priority physical Commonwealth and State making. The more the public service is and social infrastructure needs. Government policy and centralised into Adelaide, the more policy programs support increasing Provide representation to decisions are formed through a 'city' lens regional SA population. stakeholders and make and the more connection with regional submissions to relevant communities is lost. Committees and Inquires.

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Issue Position Outcome sought Key Actions Lead Body

Mobile Food Vendors – Changes to legislation have effectively Repeal of the Mobile Food Through the Local Government LGA Board Regulations for stripped local government of regulatory Vendors regulations to give reform program, make Regions powers in this area and have limited the councils more autonomy to submissions for legislative influence that communities have about the regulate mobile food vendors. change to allow councils to make local balance between bricks-and-mortar their own decisions regarding food businesses, and mobile food vendors mobile food truck permits. with lower costs. State Heritage Tourism Heritage conservation is a pressing issue for Ensure that local government Represent member councils’ LGA Board Strategy many South Australian councils. Local views are considered as the interests on the Heritage Tourism government experiences firsthand the great State Government develops a Alliance – as the key stakeholder extent to which their communities value local Heritage Tourism Strategy. advisory group to the heritage, and the value local heritage development of the strategy. contributes to their streets, suburbs and beyond.

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Theme: Community Assets and Services Local government acknowledges that protecting the health and wellbeing of its communities is a shared responsibility of all tiers of government and recognises the significant contributions that councils make in this area. Objective: State and Federal Governments recognise and respond to the opportunities to work with councils to improve the quality of life of South Australians by better shaping neighbourhood development, improving infrastructure and access to public services.

Issue Position Outcome sought Key Actions Lead Body

Libraries – state Libraries are a much loved community Renewal of the State/Local Undertake a research report to LGA Board government funding facility that provide a range of valued Government libraries funding form the evidence base for the services to people of all ages. agreement with no reduction in Value of Libraries strategy. the level of State Government Public Library funding is the subject of a 10- Support research being funding provided. year agreement between the State undertaken by universities and Government and the LGA, which is due to other groups. expire in 2021. Design and implement a public awareness campaign to promote the value of libraries. Participate in negotiations with the State Government on behalf of the sector. Aged Care Reforms – Commonwealth age care reforms have Councils are sufficiently Seek opportunities to continue LGA Board Commonwealth created a high degree of uncertainty for supported by the to advocate for going funding funding councils and the communities they serve; Commonwealth Government to for those councils seeking to however, there is a strong sense in our provides a basic level of aged continue to provide services. sector that there is an ongoing role for local care services to support government in supporting the needs of continued independence for people as they get older. people aged 65 and over living at home and delaying entry to more expensive residential care.

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Issue Position Outcome sought Key Actions Lead Body

Lack of medical The ongoing lack of medical services in Improved health services in Invite the Minister for Health SAROC services in regional regional areas means that councils are being regional and rural Australia – and the CEO of Country Health areas relied upon to provide front-line medical less reliance on local to attend a SAROC meeting to services. This comes at a cost to ratepayers government intervention. hear directly from regional and can detract from councils’ efforts to councils. provide and maximise the benefits of Make submissions to the SA community preventative health activities. Rural Health Workforce Strategy Identify the health service needs of regional communities Undertake research to identify sustainable health models for small communities. National Disability Councils recognise that the NDIS rollout is Ensure that the NDIS Form a consolidated position LGA Board Insurance Scheme – having significant impact (both positive and adequately provides to people with National Disability SA roll-out negative) on local communities, including with a disability and supports Services (peak industry) and people with disability, their carers and councils to deliver their services SA Department of Human families, general and specialised service appropriately. Services to advocate to the providers, community organisations and Federal Government and the disability services workers. Local National Disability Insurance Government remains concerned about the Agency (NDIA)to provide risk of market failure across all spheres of better data and market government in the provision services and information. support of people with a disability. Seek opportunities to advocate for a review the model for provision and funding of NDIS transport in regional areas.

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Issue Position Outcome sought Key Actions Lead Body

Advocate to NDIA for the introduction of specific Information, Linkages and Capacity Building (ILC) grants for councils to fund programs that will assist with the integration of NDIS participants and other people with disability into general council services. Community Wellbeing Local government acknowledges that Demonstrate the potential Implement and evaluate the LGA Board Alliance protecting the health and wellbeing of its outcomes of a statewide two regional LGA trials that are communities is a shared responsibility of all Community Wellbeing Alliance. currently underway. tiers of government and recognises the Use the outcomes of the pilot significant contributions that councils make program evaluation to refine a in this area. Councils contribute to providing proposal for a state-wide preventative and on-going health services, program. notwithstanding the significant responsibilities of federal and state government. Wellbeing SA - Local government recognises federal and Wellbeing SA’s Strategic Plan LGA representation at LGA Board implementation state governments have a responsibility to includes opportunities for Wellbeing SA workshops. provide quality health care and that council’s effective collaboration with local Submission to draft Wellbeing role is limited to local or regional government and unlocks local SA Strategic Plan preventative public health activities. Councils government’s potential to continue to liaise with federal and state further support local governments to maximise the benefits of communities in partnership with community preventative health activities the State Government. offered.

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Issue Position Outcome sought Key Actions Lead Body

State-wide Asbestos Councils continue to receive complaints and State Government commitment Seek opportunities to continue LGA Board Strategy enquires regarding asbestos. Issues are to a state-wide Asbestos to advocate to the State primarily centred around the illegal dumping Strategy Government to commence a on council land and the management of state-wide asbestos asbestos containing materials in a domestic identification, collection and setting. These are not only local government rehabilitation program, with a issues and require a joint response by State focus on public areas known and Local Government, and other for the illegal dumping of stakeholders. materials containing asbestos. SA Public Health Act The Public Health Act 2011 recognises the Further clarity on the roles and Engagement with member LGA Board 2011 – legislative important role that councils have long played responsibilities between state councils to inform an LGA review in public health, and they are named as and local government. submission to the review of the public health authorities for their area. The Act Continued support for public Act provides the legislative framework for health planning and improving Continue to seek opportunities authorised officers and requires councils to the relationship between to advocate – ie when the draft support the delivery of immunisation councils and Public Health amendments are released for services, and to develop regional public Partner Authorities. consultation. health plans. Maintain strong relationships with individuals and organisations in the public health space. Dog and Cat Annual dog registrations (falling in August) Dog registrations becoming due Write to the State Government LGA Board Management issues requires a full annual fee regardless of when 12 months from the date the seeking an operational review the registration takes place. Some councils dog was registered of the Dog and Cat are concerned that some owners are not Management Act 1995 (SA) be Dogs and Cats Online (DACO) completing new registrations for dogs early commenced during 2019. to automatically advise an in the calendar year and are instead waiting individual when additional for the period in which all annual council approval is required registrations are due to avoid paying the full when registering a dog or cat. registration fee twice in the same year.

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Theme: Planning and Development The LGA and our member councils recognise local government’s role in future planning and development, and the importance of using planning processes to obtain enhanced planning and design outcomes for communities. Objective: The State Government recognises the important role councils play and implements a fair, equitable and balanced planning system that facilitates high quality, sustainable and economically viable development.

Issue Position Outcome sought Key Actions Lead Body

Planning Reform The LGA has consistently advocated for a State Government recognition Continue to host member LGA Board planning system that is accessible, of the quality planning and forums and workshops that

integrated, accountable and supports local design standards expected by facilitate the exchange of participation and decision making. Quality local government and our information between councils design outcomes are a hallmark of a great residents that complement and and DPTI and the State planning system. preserve the fabric of local Planning Commission. communities. Represent the views of local government on the Minister’s

Liaison Group. Provide regular briefings to key stakeholders and engage with industry groups to seek a range of perspectives. Make submissions on all key documents during the implementation of the new system. Make public statements that highlight the key issues of councils and communities.

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Issue Position Outcome sought Key Actions Lead Body

Heritage and Heritage conservation is a pressing issue for Current heritage classifications Work with GAROC to develop GAROC Contributory Items many South Australian councils. The State and protections including a position paper. Government is considering state-wide reform Historic Conservation Continue to engage with of heritage policy through Planning Reforms, Zones/Policy Areas and member councils. and the heritage and character information Contributory Items be provided by the State Planning Commission transitioned in their current form Seek opportunities to continue gives an overall impression of weakening of into Generation 1 of the new to advocate for the stated heritage conservation policy and reducing planning system. outcomes. certainty for owners, developers and the The State Government Make public statements that community through use of more subjective implement, in consultation with highlight the key issues of planning controls, particularly in relation to local government, the councils and communities. demolition. recommendations of the final

report of the Environment, Resources and Development Committee’s Heritage Inquiry. The State Planning Commission engages with local government on the detail of the Planning and Design Code as it relates to heritage and character and, in particular demolition control.

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Issue Position Outcome sought Key Actions Lead Body

Infill Development Local government recognises the need to To ensure that South Write to the Minister of GAROC contain urban sprawl. However, the Australia’s planning system Planning to seek a increased densities resulting from infill reflects leading practice and comprehensive review of the development have placed additional that the Planning and Design cumulative impacts of infill pressure on services and infrastructure. In Code and associated resources development in South particular, member councils have raised delivers quality design Australia to inform evidence- issues associated with traffic management, outcomes that complement and based decision making about carparking, stormwater management, loss of preserve the special qualities of the capacity of identified infill trees, provision of open space, privacy, local communities. areas to sustain further overshadowing and design quality in relation growth and development; to infill development. Request the preparation of a new State Planning Policy for Infill Development under the Planning, Development and Infrastructure Act 2016 Advocate to and work with the State Planning Commission to ensure that South Australia’s planning system reflects leading practice and that the Planning and Design Code and associated instruments deliver quality planning and design outcomes that improve the amenity, liveability and sustainability of communities.

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Issue Position Outcome sought Key Actions Lead Body

Non-compliant The Grenfell Tower fire (London, 2017) Possible strategies for dealing Continue to liaise with the LGA Board Building Cladding highlighted the risk to public health and with identified cases where State and Federal safety from non-compliant aluminium non-compliant building cladding Government to ensure that cladding on buildings. is found to exist. councils are informed of future developments and are kept up An appropriate response from to date with reliable expert all spheres of government that advice when available. properly informs but does not alarm the community unnecessarily and protects the interests of local government by determining steps for any remedial work by building owners to address problems with their buildings. Telstra advertising on The new Telstra Payphones installed in Removal of third-party Continue to seek LGA Board payphones some council areas are displaying third party advertising on the new Telstra opportunities to raise this advertising. payphones issue with both state and federal government. This appears to contravene the relevant Determination under the Continue to engage with DPTI Telecommunications Act 1997, which clearly regarding their refers to commercial advertising on public determinations. payphones as not being a "low-impact facility" and accordingly, Telstra should not be able to rely on this determination to circumvent relevant state laws.

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Issue Position Outcome sought Key Actions Lead Body

New Properties While the Commonwealth has policies Connection to Seek commitment from the LGA Board Application for detailing developer obligations, these are not telecommunication South Australian Minister for Reticulation (AFR) sufficient within the state-based planning infrastructure being mandated Planning seeking that the system to ensure developers are meeting in relevant legislation Planning, Development and the necessary requirements at the land Infrastructure Act 2016 be division stage. amended to include telecommunications as an essential service for the purpose of issuing land division consents; and Write to the Department of Communications to seek more information on the awareness campaign being undertaken by the Department and communicate the information to councils. Building Code The Commonwealth Disability (Access to To change the future design Write to the relevant authority LGA Board Standards for Premises – Buildings) Standards 2010 standards of the Building Code to seek amendments to the Accessible Car (Premises Standards) changed accessibility of Australia, to establish a Building Code of Australia to Parking requirements in and around buildings. The minimum height clearance, establish a revised minimum objective of the Premises Standards was to providing the chance for people height clearance standard for ensure that ‘dignified, equitable, cost with disabilities to participate in car parking including for car effective and reasonably achievable access all community activities. parking spaces and access to to buildings, and facilities and services within car parking facilities to enable buildings, is provided for people with a Access Taxis and/or similar disability’. vehicles, designed for people with disability (or minimum distance from the site), to access appropriate parking spaces.

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Theme: Environment and Natural Resources The LGA and our member councils appreciate local government’s role in protecting the environment, managing the risks of climate change, and the importance of managing waste. Objective: Influence, inform and advocate for the State Government to address funding, policy and legislative barriers that hinder councils from undertaking their roles in maintaining and enhancing the natural and built environment in regional South Australia.

Issue Position Outcome sought Key Actions Lead Body

Waste & Recycling The recent implementation of the China The LGA’s Waste Action Plan Continue to outline the impacts LGA Board National Sword Policy has shown that identifies local, state and of the increased levy on Australia still has a long way to go to federal actions required to: councils and ratepayers, via achieve waste management practices that the LGA public awareness  stabilise the waste industry are truly sustainable. The LGA is hopeful campaign.  ensure the ongoing that the momentum created by this commercial viability of Provide regular briefings to development can lead to positive reforms. recycling services; and state and federal members of  establish a circular Parliament to build support for economy as a means of local government’s position. achieving sustainability in Seek opportunities to continue waste management. to advocate for the stated outcomes. Make public statements that highlight the key issues of councils and communities. NRM Reform and The Landscape SA Bill 2019 was introduced Local government interests are Participate in the NRM reform SAROC Landscape Bill into Parliament on 20 March 2019. The bill appropriately considered as the process and advocate on proposes a new framework for natural legislation is established and behalf of regional councils on resources management that focuses on a implemented. the draft Landscapes SA Bill simpler and more accessible system that and its implementation. Invite delivers for local communities and our the Minister for Environment natural environment. and Water to attend a SAROC meeting

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Issue Position Outcome sought Key Actions Lead Body

Overabundant Species Overabundant species, such as Little Corella A State Government Advocate for and provide input SAROC - Little Corellas / populations across several council areas, commitment to fund to the SA Strategy for the Dingoes are causing significant impact to councils implementation of a statewide Management of Little Corellas. that need to expend substantial resources Little Corella strategy that Identify funding opportunities being in deterring and managing a wide includes financial assistance to to undertake a study into range of issues. local governments for the biological solutions for development of integrated local management of Little Corellas. management plans and the implementation of medium- and Continue to advocate to the long-term management options State Government for the at a local-scale. management and control of abundant native species. Coastal Management The task of protecting and maintaining South Equitable funding from Federal Include coastal management SAROC Australia’s coastal assets is beyond the and State Government for issues in submissions to LGA Board funding capacity of coastal councils. coastal management works Government, including budget across South Australia. submissions. South Australia’s coastline is enjoyed by the broader community, as well as visitors to the Support the work of the State, so funding the upkeep of our coastal Coastal Councils Alliance in areas must be a shared responsibility. researching issues and funding models and advocating for change. National Water Policy Local government recognises its obligation Federal Government provides Hold an annual meeting of the SAROC to conserve water resources, protect water national leadership in water MDA member councils to quality, provide water for the environment reform and makes a discuss issues relating to and effectively manage storm and flood commitment to a national water water policy, prior to the MDA water. Councils contribute to improving policy. AGM water management infrastructure and Facilitate local government processes, notwithstanding the discussion relating to water responsibilities of federal and state policy including advocating for governments. a national water policy.

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Issue Position Outcome sought Key Actions Lead Body A National Water Policy is required that seeks to address the major challenges Australia faces in ensuring sustainable water supply in the face of increased climate variability and rising demand for water. In response, the Australian Government provides national leadership in water reform.

Native vegetation in most parts of South Continue to advocate to the Native Vegetation – Flexibility within the Native LGA Board Australia is protected under legislation, State Government for a review Township Boundaries except for parts of metropolitan Adelaide as Vegetation Act 1991 (the Act) of native vegetation controls prescribed by the Regulations. This creates and the Native Vegetation within regional township a disparity between metropolitan and Regulations 2017 to enable boundaries to assess whether regional councils, who have no avenue for regional councils to seek exemptions similar to those in exemptions to pay offset charges. exemptions from the Native metropolitan Adelaide are Vegetation Council to manage feasible. infrastructure and develop land for economic development purposes without paying for offsets Climate Change – That the State Government Advocate to the State Local government appreciates the impacts LGA Board leadership, risk establishes and manages a Government on the outcomes management and state of climate change that pose a risk to the centrally coordinated climate sought. of climate emergency services councils provide and are taking hazard mapping framework to action to help address the effects of climate inform decision-making in Identify advocacy opportunities change in local communities. collaboration with councils. with the State Government. Consult with member councils This will require policy support and Local government priorities on to determine climate change recognition from the State Government. climate risk management are risk and management considered in the State priorities. Government’s new cross- agency Climate Change Host GAROC session with Strategy. metropolitan councils

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Issue Position Outcome sought Key Actions Lead Body

Wine Bottles – Local government recognises its statutory Determine if there is sufficient Continue to be actively LGA Board Container Deposit obligation of managing municipal waste and support across local involved in the Container Scheme its vital role in waste resource recovery. government to request the Deposit Scheme (CDS) review State Government amend the process, which is currently Councils continue to promote improved Container Deposit Legislation ongoing, including through waste management practices in accordance (incorporated into the membership of the EPA with the waste hierarchy and work with Environment Protection Act Stakeholder Reference Group residents and businesses to further limit the 1993) to include wine bottles, for the review. creation of waste. and to achieve consistency with Work with councils to review Currently wine bottles are not included in the treatment of other glass the benefits and risks of SA’s Container Deposit Scheme. bottles in the waste stream, an including wine bottles in increase in the recycling of Container Deposit Legislation bottles, and a reduction in the to determine a strong contamination of other recycled advocacy position. waste caused by broken glass. Engage consultants to undertake a waste audit and economic analysis on recycling costs for councils. Local Nuisance and The Local Nuisance and Litter Control Act Local government and council Develop and issue the LGA LGA Board Litter Control Act 2016 is underway to consider any issues feedback is considered in the Submission to the Local review that have arisen in the administration of the implementation review. Nuisance and Litter Control legislation in the 2 years since the legislation Act review No amendments that increase commenced. the role and responsibility of Consider further opportunities There are increased resourcing local government are made through the EPA/LGA Service requirements for councils associated with unless they are supported by a Level Agreement for the administering the Act. clear policy basis and data that provision of support services justifies the need for the for environmental nuisance change. matters – for example training for councils.

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Issue Position Outcome sought Key Actions Lead Body Host a joint forum with the EPA to discuss their approach, as a regulatory body, to working with councils generally.

Emergency Councils are playing an increasing role in A funding commitment to Continue to raise issue with LGA Board management – Local emergency management planning and support the LGA’s work with relevant minister and within Government response but are not being adequately councils on disaster mitigation, the LGA Budget Submission. Functional Support supported by the state government for these and the ongoing operation of Research and explore Group new responsibilities. Better coordination the Local Government opportunities for the funding between state and local government is Functional Support Group. needed to support local needed in preparing for, and also during government to meet its emergency events to reduce the risk of loss emergency management of life and property damage. responsibilities – for example from the Emergency Services Levy.

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LGA Advocacy Initiatives The LGA advocates for councils on a wide range of issues, and in the past six months this has included waste and recycling, the Solid Waste Levy, NRM Levy, local government reform, road safety, the EPA’s Local Nuisance and Litter Control Act review, planning and heritage reform, sex work decriminalization, “Smart Cities”, coastal protection, council rates, and infrastructure funding. Press/online coverage Below are links to online press articles the LGA has initiated or contributed to on behalf of the sector.

Advertiser/Messenger https://www.adelaidenow.com.au/news/south-australia/every-street-should-be-audited-for- speed-limits-local-government-experts/news-story/6805a33e3a46a6ae6b4700d6e9afa399 https://www.adelaidenow.com.au/news/south-australia/councils-have-drawn-up-a-hit-list-of- litter-and-nuisances-they-want-fixed-under-incoming-laws/news- story/1c0e9eb5e19fdea9d4cc8cd4858fad8e https://www.adelaidenow.com.au/messenger/adelaide-councils-328m-infrastructure-splurge- see-whats-being-built-and-upgraded-in-your-area/news- story/33df0786f3c7518663da75dbd2e97d0c https://www.adelaidenow.com.au/news/south-australia/councils-call-for-a-less-citycentric- focus-on-homelessness/news-story/ef803911228b506ee86d584e625321fa https://www.adelaidenow.com.au/news/south-australia/schools-kindys-churches-across-sa- off-limits-for-sex-work/news-story/78494b7d9762584e90761e468eba51c2 https://www.adelaidenow.com.au/messenger/labor-wants-to-force-developers-to-offer- onsite-car-parks-for-new-residential-developments/news- story/89728c1ddd0c230a1d891a1da40b4174 https://www.adelaidenow.com.au/messenger/kordamentha-tells-councils-mountains-of- recycling-will-not-be-moved/news-story/45f8b0a87a1a8c38a0e758717dbf8e14 https://www.adelaidenow.com.au/news/south-australia/council-spending-probe-reveals-staff- wages-growing-faster-than-other-workers/news- story/c26da1613a4bc648229349dc0606731e https://www.adelaidenow.com.au/messenger/smart-city-adelaide-councils-using-sensors-to- monitor-everything-from-rubbish-to-roads/news- story/15c42d8b839a3edbe361c3da09e8d025 https://www.adelaidenow.com.au/messenger/port-adelaide-enfield-and-charles-sturt- councils-to-build-recycling-plant/news-story/37c6f84f7f71a6b1439135178af42532 https://www.adelaidenow.com.au/messenger/proposed-statewide-planning-reform-puts- LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 216

heritage-buildings-at-risk-local-government-association-says/news- story/e7965b5dff6fe62bda689f2045833cf0 https://www.adelaidenow.com.au/messenger/adelaide-councils-adjust-their-rates-to-cope- with-surprise-40-per-cent-solid-waste-levy-increase/news- story/77cac84f244f224e09b2e1d41634b37d https://www.adelaidenow.com.au/news/south-australia/stalled-council-rate-cap-will-leave- ratepayers-with-massive-bill-hikes-state-government-claims/news- story/94095b75c846f22057492270c97c2826 https://www.adelaidenow.com.au/messenger/city/lga-and-minister-fear-council-ratepayers- would-foot-the-bill-for-sex-work-decriminalisation/news- story/7a7a143ac3cd60dff5a8b8b75afcbf81 https://www.adelaidenow.com.au/messenger/local-government-association-wants- productivity-commission-to-investigate-waste-management/news- story/eed1fa3ce22c89fbed748e8e66468c2a https://www.adelaidenow.com.au/messenger/budget-2019-surprise-solid-waste-levy-rise-to- force-councils-to-pay-millions-more-for-dumping/news- story/ed3a19926d97c3acadad1acada7bdd9f https://www.adelaidenow.com.au/news/south-australia/regional-sa-councils-seek-10m-to- safeguard-coastline/news-story/6f03ff3e81d3b9ba1831e60183b2a4ac https://www.adelaidenow.com.au/news/national/federal-election/climate-change-debate- dominates-election-as-sa-councils-demand-national-action-to-stop-erosion/news- story/d7c60cb7f67b3776de9997cf174f55fa https://www.adelaidenow.com.au/messenger/most-metropolitan-adelaide-councils-seek- modest-rate-increases-of-around-25/news-story/2b598d323e920248bd2952ea5655e76f https://www.adelaidenow.com.au/messenger/south-australia-parliament-to-examine-impact- of-china-sword-recycling-crisis-on-councils/news-story/f19a18d73f40a73a32a10cefb9df4453 https://www.adelaidenow.com.au/messenger/north-northeast/infrastructure-growing-pains-in- adelaides-north/news-story/98caa8ea9084ae47a45da96d47298a28 https://www.adelaidenow.com.au/news/south-australia/the-environmental-watchdog-is- cracking-down-on-neighbourhood-nuisances-but-will-your-least-favourite-be-on-the- list/news-story/06c089db198818605227f8deb07bbbce Indaily https://indaily.com.au/news/local/2019/08/23/city-council-set-to-oppose-sex-work- decriminalisation/ https://indaily.com.au/news/2019/06/19/councils-to-raise-rates-and-stink-over-budget-bin- tax/ LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 217

https://indaily.com.au/news/local/2019/05/23/new-probe-into-council-spending-to-push- reforms/

Radio/TV coverage Since April 2019 LGA representatives have participated in 43 radio and television interviews. The breakdown of these appearances is outlined below.

Media outlet Number of appearances ABC Regional Radio 19 5AA 12 ABC Radio Adelaide 10 Channel 7 1 Channel 9 1 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 218

6.8 LGASA Commercial Update

LGA Business From: Steve Nolis, Executive Director Commercial Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3D Develop, review and improve LGA commercial enterprises Meeting: Annual General Meeting 31 October 2019 ECM: 688544

Recommendation That the Annual General Meeting notes the report on LGASA Commercial activities.

Discussion LGASA Commercial Since commencing operations in late 2018, LGASA Commercial has launched several services that has benefited our Councils. Key cost saving services include Legal, Energy Audits, Travel, Media Training and Crisis Management, CEO/Executive Recruitment, CEO Performance Reviews and Human Resource Consulting services. To date 74% of LGA Member Councils and LGA Regional entities have engaged with LGASA Commercial services. This has resulted in estimated savings of $710K for the sector to date. Of further note is that traditional external providers to the sector are noticeably reducing their prices to compete with LGASA Commercial pricing models. Due to a high demand, LGASA Commercial are currently working on the rollout of a HR/IR subscription library (policies, procedures, contracts and employment agreements) which will be of significant benefit to Councils. The service will also offer a free telephone support line to assist Councils with their HR/IR needs. Expressions of interest will be sent out to councils in October/November and the library will become available from 1 February 2020.

LGASA Training LGASA Commercial is now overseeing LGASA Training and a clear focus has been on understanding the sector’s training needs and tailoring training solutions to fit the need. There is also a commitment to take training to the regions and reducing the cost of services.

Public Lighting LGASA Commercial has been leading a Public Lighting Working Group (PLWG) to work collaboratively with SAPN under the oversight of the Australian Energy Regulator (AER) to assist the sector in transitioning to an Alternative Control Service (ACS) Model for future tariff pricing and LED rollouts. The key outcomes to date include: a reduction in tariffs, a reduction in the cost of luminaires, the removal of a regional tariff and introduction of a standard agreement (including no exit fees). To assist Councils in their decision making for transitioning to LED lighting, a draft

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 219

business model with calculators is now available. This will provide Councils with the financial benefits of transitioning into either a PLC tariff (LED luminaries purchased by Council) or a SAPN LED tariff (LED luminaires provided by SAPN). The PLWG is currently working on a future service level agreement and is working with SAPN to review their future capital expenditure costs and how this may affect future tariff pricing. This process is expected to save the sector between $10 - $30 million dollars over the next 5 years.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 220

6.9 Local Government Research & Development Scheme

LGA Business From: Shane Sody, Project Manager Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3B Benchmark, innovate and research Meeting: Annual General Meeting 31 October 2019 ECM: 688531 Attachments: 686100, 688527, 688528, 688529, 688530

Recommendation That the Annual General Meeting notes the report.

Discussion The Local Government Research and Development Scheme (the Scheme) is established under section 31A of the Local Government Finance Authority Act 1983 (LGFA Act) to fund projects that are strategically of benefit to local government. The Scheme is unique in Australia – operating since the late 1990’s to provide a wealth of guidance and assistance to the local government sector. A research library1 maintained on the LGA website hosts more than 600 studies and reports covering the full breadth of local government operations. The research library allows full-text searching plus browsing research projects by theme or category. Grants issued under the Scheme are used for a variety of purposes, including:  strategic development of local government information services, helping councils with reforms to service delivery, measuring performance and benchmarking, development of training, codes and guidelines; consultation on legislative changes affecting local government; and  payments for which local government, through the LGA, is liable under legislative provisions (such as payments to the Remuneration Tribunal for setting member allowances). In 2018-19, 23 projects were completed with a total value of $1.12 million covering issues such as emergency management, the implementation of NDIS, a trial of the RAVRAT tool (heavy vehicles), responding to the China Sword Policy, and the digital maturity of regional councils. The LGA Board of Directors has also approved commencement of 24 new R&D Scheme projects with a total value of $968,250, ranging from issues such as support for disability access and inclusion planning, hardship policies, the value of libraries, a cost-benefit analysis of establishing Materials Recovery Facilities in regional areas, developing community wellbeing indicators and a regional youth volunteering trial. This report and its attachments provide a comprehensive overview of the Scheme and its operation during 2018-19.

1 https://www.lga.sa.gov.au/page.aspx?u=7223

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 221

Purposes of the Scheme The Scheme is operated pursuant to a Memorandum of Understanding (MOU) between the LGA and the Minister with responsibility for the LGFA Act (formerly the Minister for Finance, now the Treasurer). The MOU outlines the purposes of the Scheme to provide grants or services that assist councils with the following outcomes:  access electronic information and other strategic development of local government information services  performance assessment, measurement and benchmarking, and performance improvement  development of training, handbooks, guides or codes related to the administration of legislation under which Councils operate  promote understanding of the role, purposes and functions of local government, including development of materials for schools  undertake research and development projects in priority areas specifically identified on an annual basis following consultation by the LGA with Councils, or concerning innovation in local government administration or services  consultation on projected legislative changes affecting local government  introduction and implementation of reforms to service delivery, within local government and between State and local government  strengthen their ability to provide services to their members and communities and to engage effectively in intergovernmental discussions and negotiations. "Regional Local Government organisations" includes both rural and metropolitan regional groupings as possible beneficiaries for funding of initiatives with potential sector wide benefit  payments for which local government, through the LGA, is liable under legislative provisions requiring the LGA to pay or contribute to the costs of specified statutory activities undertaken for Local Government purposes  planning for the development/maintenance of infrastructure and undertaking asset management planning. These Purposes are subject to annual review by the Local Government Research and Development Scheme Advisory Committee (see below). The MOU enables the LGA to delete or add a Purpose as required, with the support of councils and the Minister. Local Government Research and Development Scheme Advisory Committee The primary responsibility for the management of the Scheme lies with the LGA Board of Directors. However, the MOU provides for the appointment of a Local Government Research and Development Scheme Advisory Committee (the Committee) with responsibility for making recommendations to the LGA Board on the distribution of funds, developing and consulting on an Annual Business Plan for the Scheme, and monitoring and evaluating the outcomes of the Scheme.

Local Government Association of South Australia

The composition of the Advisory Committee is:  Three members of the LGA Board;  One metropolitan CEO nominated by the Metropolitan CEO's Group;  One country/regional CEO nominated by Local Government Professionals Australia (SA);  One representative recommended by the relevant Trade Unions (or nominee);  One representative recommended by SA Universities (or nominee);  Manager of the Office of Local Government (or nominee); and  Chief Executive Officer of the LGA (or nominee). The Scheme provides for the appointment of an Executive Officer to support the work of the Advisory Committee and manage the administration of the grant’s issues through the Scheme. Annual Business Plan The Local Government Research & Development Scheme Advisory Committee is required to develop an Annual Business Plan designed to focus the attention of potential funding applicants on matters that will contribute to the advancement of Local Government for that year. A draft Annual Business Plan is circulated to councils for feedback before being finalised. The 2019-20 Local Government Research & Development Scheme Annual Business Plan was approved by the LGA Board on 31 January 2019 and is available at https://www.lga.sa.gov.au/research Funding applications to the Scheme are assessed by the Committee against their alignment to the Scheme’s Annual Business Plan and the LGA’s Annual Priorities, and recommendations are made to the LGA Board about the distribution of funds. Pursuant to the MOU between the LGA and the Minister for Finance, the LGA is required to provide, to the Annual General Meeting, a report that includes:  a financial analysis and budget;  details of projects approved in the previous financial year;  details of projects completed in the previous financial year;  details of current projects; and  a list of projects proposed for the current financial year. The five attachments to this report fulfil the LGA’s five responsibilities under the MOU. In 2018-19, 23 projects were completed with a total value of $1.12 million. The Board also approved commencement of 24 new R&D Scheme projects with a total value of $968,250. The list of projects “proposed” for the current financial year includes:  a list of projects approved by the Board on 16 May 2019 to commence on 1 July 2019; an  a list of projects approved by the Board on 19 September 2019, for which offers of funding were made in late September 2019. No further projects are currently proposed until the 2020-21 financial year. One of the projects that commenced in 2018-19 was a “Review of R&D project finalisation documentation and evaluation mechanisms.” The report of this project was delivered to the LGA Board in September 2019 and will lead to improved evaluation of R&D projects commencing in 2020.

Financial and Resource Implications All current projects have been anticipated in the administration of the Scheme and the LGA’s work program and resources are available to progress these projects.6.9

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 223

Local Government Association of SA Local Government Research and Development Scheme

Allocations Report for Year Ended 30 June 2019 2019/20 Approved Budget 2018/19 2017/18 Actual Full Budget Actual Full Budget Year Full Year Year Full Year (unaudited) $ $ $ $ Income LGFA TER Project funding 1,980,000 1,742,189 1,500,000 1,622,029 1,508,000 DSD TER Project funding 375,000 1,218,554 750,000 402,288 750,000 R&D Funds Returned - LGA internal 1 - 54,626 40,000 2,593 40,000 R&D Funds Returned - External 25,000 201,025 Total Income 2,355,000 3,040,369 2,290,000 2,227,934 2,298,000

Project allocations Administration Fees 138,720 126,438 136,000 142,322 151,000 LGA Managed - External 2 750,000 883,961 750,000 550,189 748,561 LGA Managed - SAROC & GAROC 3 200,000 - - - - LGA Managed - Base-level regional capacity building 4 290,700 284,844 285,000 278,439 278,439 LGA Managed (Call) 5 60% 1,078,580 647,148 550,000 515,400 907,000 907,566 LGA Managed (Call) Outreach Program - 150,000 150,000 150,000 LGA Managed (CEO/Board Initiated) 6 40,000 30,000 40,000 56,776 40,000 LGA Managed (Ongoing) 7 232,000 180,000 180,000 178,780 177,000 Externally Managed Projects 40% 1,078,580 431,432 368,250 343,600 504,172 614,710 Total allocations LG R&D SCHEME 2,730,000 2,573,494 2,400,000 2,767,678 2,917,276

Net Surplus/(Deficit) LG R&D SCHEME (375,000) 466,876 (110,000) (539,743) (619,276)

Statement of R&D Reserves Opening Reserve Balance 1,348,598 881,723 881,723 1,421,466 825,683 Plus Inflows 2,355,000 3,040,369 2,290,000 2,227,934 2,298,000 Less Outflows (2,730,000) (2,573,494) (2,400,000) (2,767,678) (2,917,276) Closing Reserve Balance 973,598 1,348,598 771,723 881,723 206,407

Note 1 The R&D funds returned - LGA internal refers to both internal and external returned funds. 2 Refers to Regional Capacity Building "top-up" allocations, a.k.a. "rubble royalties" returned pursuant to Board decision, to regional LGA (equivalent to DSD TER receipts) 3 The A recommendation that SAROC and GAROC each receive $100k for projects at their discretion, on conditions similar to those for 'regional capacity building allocations' 4 "Base-level" Regional Capacity Building allocations indexed by assumed 2% CPI ($285,000 in 2018-19). Note this includes GAROC (formerly MLGG) as a seventh region, with funding at the same level as each of the six non-metro regions. 5 Allocations 'LGA' refer to internal LGA allocations 6 Refers to a contingency for any projects that might be initiated by the CEO (and/or the Board) at any time during the year, and managed internally by the LGA.

7 Refers to LG Awareness Campaign (in recent years $150k per annum but in this budget $200k proposed) and Model Financial Statements (2018/19 budget $32k) LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 224

PROJECTS APPROVED 2018‐19 Project approval Anticipated End Amount made Project ID Project Title Proponent date Date available 2018.53 Public Health "general duty" evaluation Flinders University 13/09/2018 30/09/2019 $17,250 2018.54 Efficiencies and service delivery in LG caravan parks. CERM PI, University of South Australia 13/09/2018 20/09/2019 $30,000 2018.55 Coordination for Strategic Coastal Management Limestone Coast LGA 13/09/2018 31/03/2020 $100,000 2018.57 Digital Maturity of Regional Local Government Legatus Group 13/09/2018 14/05/2019 $28,000 City of Onkaparinga (as host organisation for 2018.59 Guide for Leasing or Licencing Sports and Community Facilities 13/09/2018 30/09/2020 $25,000 the Local Government Recreation Forum) 2018.62 Business Intelligence Benchmarking ‐ Phase 1 Wattle Range Council 13/09/2018 30/04/2019 $30,000 2018.64 Resilient Hills & Coasts Community Energy Program Southern & Hills LGA 13/09/2018 25/09/2019 $45,000 2018.68 Collective Impact ‐ opportunities for innovation and reform University of SA 13/09/2018 31/01/2020 $25,000 2018.69 Digital spotlight on recycling and waste reduction East Waste 13/09/2018 10/01/2020 $35,000 2018.72 Leveraging Sister City relationships into economic development Workforce Blueprint 13/09/2018 30/06/2019 $8,000 Supporting Local Government to implement the Planning, 2019.01 LGA 16/5/2019 30/06/2020 $100,000 Development and Infrastructure Act 2016 Development of Disability Inclusion Community of Practice (and 2019.02 LGA 16/5/2019 29/10/2021 $100,000 support development of DIAPs) 2019.03 Costs of providing recycling services LGA 16/5/2019 01/10/2019 $70,000 2019.04 Hardship Policy Guidelines LGA 16/5/2019 31/12/2019 $15,000 2019.05 Delegations Review LGA 16/5/2019 01/12/2020 $100,000 2019.06 Local Heritage Listing Policy and Procedures LGA 16/5/2019 30/06/2020 $35,000 2019.07 Research into the Value of Libraries LGA 16/5/2019 $50,000 2019.08 Partnership Efficiency and Cost Pressure Research LGA 16/5/2019 01/05/2020 $50,000 2019.09 Local Government Population Carrying Capacity Project Scope LGA 16/5/2019 25/10/2019 $15,000 2019.10 Temporary and Special Events Guide with Red Tape Reform. LGA 16/5/2019 29/11/2019 $15,000 2019.12 Local Government Population Carrying Capacity Project Scope LGA 16/5/2019 01/01/2020 $15,000 2019.13 Making it easier to run temporary events LGA 16/5/2019 01/01/2020 $15,000 2019.14 i‐Responda app ‐ Council Resource Update LGA 16/5/2019 31/12/2019 $35,000 2019.15 i‐VISS developments LGA 16/5/2019 30/10/2019 $10,000 $968,250 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 225

PROJECTS COMPLETED 2018‐19

Funds Completion File Number Project Name Date Approved Proponent (Primary) Approved Date

Council Emergency Management 2015.06 $82,000 19/03/2015 27/07/2018 LGA Capacity 2016.01 Street lighting (alternatives) $55,000 19/05/2016 23/08/2018 LGA 2016.09 Governance $50,000 19/05/2016 30/11/2018 LGA 2016.17 Business Analytics $80,000 19/05/2016 30/09/2018 LGA 2016.22 Strategic Procurement Policy $21,000 19/05/2016 28/09/2018 LGA District Council of Lower Eyre 2016.32 Disaster Ready $40,000 29/09/2016 17/08/2018 Peninsula Realignment of the Hills Rail Corridor: 2016.36 $25,000 29/09/2016 16/08/2018 Southern and Hills LGA Cost Benefit Scoping Study Places & Spaces ‐ Facility Booking System 2016.39 $25,000 29/09/2016 27/07/2018 City of Prospect for Councils The Role of Public Toilets in Mobility and School of Social and Policy Studies, 2016.56 $23,926 29/09/2016 30/09/2018 Social Inclusion Flinders University 2017.09 LGA Outreach Services 2017‐18 $300,000 18/05/2017 20/07/2018 LGA 2017.10 LGA Schemes Review ‐ Phase 2 $100,000 18/05/2017 31/12/2018 LGA Rating equity for commercial and or 2017.53 $16,600 28/09/2017 3/07/2018 Legatus Group industrial land uses outside towns NDIS impact on Metropolitan local 2017.55 $32,000 28/09/2017 18/06/2019 LG Professionals SA governments NDIS impacts on regional local 2017.56 $23,100 28/09/2017 01/06/2018 Legatus Group governments 2017.57 Trial and Implementation of the RAVRAT $25,000 28/09/2017 25/09/2018 Northern Areas Council Exploring non‐usage of Aquatic and CERM PI (University of South 2017.64 Recreation Centres in Vulnerable and $22,194 28/09/2017 14/09/2018 Australia) Disadvantaged Community Groups 2017.65 Update Voters Roll Practice Manual $9,200 28/09/2017 6/09/2018 Revenue Professionals SA Inc Development and evaluation of 2017.66 $29,500 28/09/2017 30/10/2018 Economic Development Australia economic development measures Payment to the Remuneration Tribunal 2018.12 $70,000 17/05/2018 22/01/2019 LGA for Setting Council Member Allowances 2018.14 China Sword Policy $25,000 16/05/2018 7/09/2018 LGA Digital Maturity of Regional Local 2018.57 $28,000 13/09/2018 14/05/2019 Legatus Group Government Business Intelligence Benchmarking ‐ 2018.62 $30,000 13/09/2018 30/05/2019 Wattle Range Council Phase 1 Leveraging Sister City relationships into 2018.72 $8,000 13/09/2018 30/04/2019 Workforce BluePrint economic development

$1,120,520 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 226

PROJECTS CURRENT at 30 June 2019

Funds Proposed Progress File Number Project Name Date Approved Proponent (Primary) Approved Completion Date Complete

25.01.01 Administration of Scheme 20/08/1998 n/a LGA n/a 25.02.34 Regional Capacity Building Allocation 31/07/2001 30/06/2021 LGA n/a Resource Implications for Administering the 25.04.23 $25,000 22/11/2007 31/12/2019 LGA 80% Environmental Protection Act 2014.17 Local Excellence Expert Panel Research $200,000 20/03/2014 30/06/2019 LGA 50% 2014.55 Procurement Manual for Councils $37,000 25/09/2014 30/06/2019 LGA 80% 2015.07 Planning Reform Implementation Project $150,000 19/03/2015 30/06/2019 LGA 65% Implications of capital investment for licensed 2015.38 $20,000 17/09/2015 30/06/2019 City of Onkaparinga 50% council water retailers SA Local Government 2015.52 GST Review of Local Government Fees and Charges $50,000 17/09/2015 22/06/2019 Financial Management 90% Group Inc $25,000 plus disbursements, 2015.54 Annual Revision of Model Financial Statements indexed at 3% 21/12/2015 30/06/2020 LGA 80% annually for up to 5 years 2015.55 Local Government Awareness Raising $150,000 17/12/2015 30/06/2019 LGA 80% 2016.03 Planning Reform Implementation program $90,000 19/05/2016 30/06/2019 LGA 87% 2016.04 Supporting Local Government Reform $160,000 19/05/2016 30/06/2019 LGA 20% 2016.07 Financial Sustainability & Rate revenue $60,000 19/05/2016 12/06/2019 LGA 90% 2016.12 Human Services Reform and Funding $50,000 19/05/2016 29/03/2019 LGA 90% Alternative Funding Mechanisms for Adaptation 2016.23 $30,000 19/05/2016 19/07/2019 LGA 65% Activities Enhanced Climate Risk Assessment and Decision 2016.27 $30,000 19/05/2016 27/03/2019 LGA 90% Making LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 227

Local Government Professionals Australia, SA 2016.42 Valuing Social Outcomes $50,000 29/09/2016 31/03/2019 90% Community Managers Network South Australia Local 2016.44 Long Term Financial Plan Model Review and Update $20,000 29/09/2016 30/04/2019 Government Financial 90% Management Group Removal of organic chemicals from water by 2016.53 aquifer filtration in managed aquifer recharge $25,000 29/09/2016 3/06/2019 Flinders University 75% schemes 2017.02 Coastal Adaptation Decision Pathways Guidance $30,000 18/05/2017 19/07/2018 LGA 10% Strategic Investment Plan for Future Proofing 2017.03 $50,000 18/05/2017 30/06/2019 LGA 0% Infrastructure 2017.06 Review of water management legislation & policy $20,000 18/05/2017 31/12/2018 LGA 20% 2017.07 LG Elections 2018, Support and Promotion $142,000 18/05/2017 30/06/2019 LGA 80% Evidence to inform advocacy for a Strategic 2017.08 $40,000 18/05/2017 31/03/2019 LGA 60% Population Policy 2017.13 LG Workforce Alignment $75,000 18/05/2017 30/06/2020 LGA 30% 2017.14 e‐Learning development $30,000 18/05/2017 1/06/2019 LGA 40% 2017.15 Community Engagement $20,000 18/05/2017 30/06/2018 LGA 75% 2017.16 An Elected Member training pathway $25,000 18/05/2017 1/06/2019 LGA 70% 2017.52 Training Needs Analysis $29,000 28/09/2017 10/10/2018 TAFE SA 60% Rating equity for commercial and or industrial land 2017.53 $16,600 28/09/2017 30/06/2019 Legatus Group 95% uses outside towns 2017.60 Community Wellbeing Alliance ‐two regional trials $150,000 28/09/2017 31/10/2018 LGA 90%

2017.67 Emergency Management Online Training Resources $29,000 28/09/2017 31/03/2019 TAFE SA 45% 2017.68 BRIMS Stage 2 $40,000 28/09/2017 30/06/2019 City of Tea Tree Gully 30% Coorong District Council & 2017.72 Social Media and Communications Training $25,200 28/09/2017 30/06/2019 90% Port Pirie Regional Councils 2017.73 Live Music Resources $45,000 28/09/2017 31/03/2019 Music SA 50% 2018.01 Updated Procurement Resources $40,000 17/05/2018 30/06/2019 LGA 0% LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 228

2018.05 Governance Review, Phase 2 $40,000 17/05/2018 31/10/2018 LGA 0% 2018.07 Emergency Management Development Program $35,000 17/05/2018 31/03/2019 LGA 0%

2018.08 $15,000 17/05/2018 28/07/2019 LGA 95% Model Bike Share Scheme Policy and Procedure 2018.09 Financial Sustainability Updates $15,000 17/05/2018 31/03/2019 LGA 2% 2018.10 2018 Council elections $250,000 17/05/2018 30/06/2019 LGA 80% Review of R&D project finalisation documentation 2018.13 $35,000 17/05/2018 30/06/2019 LGA 2% and evaluation mechanisms 2018.15 LGA Outreach Services 2018‐19 $150,000 19/07/2018 30/06/2019 LGA 50% 2018.16 Chiefs for Gender Equity $5,000 21/09/2018 31/08/2019 LGA 85% 2018.53 Public Health 'general duty' Evaluation $17,250 13/09/2018 30/09/2019 Flinders University 50% CERM PI, University of 2018.54 Efficiencies and service delivery in LG caravan parks $30,000 13/09/2018 20/09/2019 30% South Australia Southern & Hills Local 2018.64 Resilient Hills & Coasts Community Energy Program $45,000 13/09/2018 30/06/2019 0% Government Association Collective Impact: opportunities for LG innovation The Australian Alliance for 2018.68 $25,000 13/09/2018 31/10/2019 0% and reform Social Enterprise 2018.69 Digital spotlight on recycling and waste reduction $35,000 13/09/2018 30/11/2019 East Waste 0% LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 229

PROJECTS PROPOSED 2019‐20 Anticipated Amount made Proponent Project Start Date Project ID Project Title End Date available

Supporting Local Government to implement the Planning, 2019.01 LGA 01/07/2019 30/06/2020 $100,000 Development and Infrastructure Act 2016 Development of Disability Inclusion Community of Practice 2019.02 LGA 01/07/2019 29/10/2021 $100,000 (and support development of DIAPs) 2019.03 Costs of providing recycling services LGA 01/07/2019 01/10/2019 $70,000 2019.04 Hardship Policy Guidelines LGA 01/07/2019 31/12/2019 $15,000 2019.05 Delegations Review LGA 01/07/2019 01/12/2020 $100,000 2019.06 Local Heritage Listing Policy and Procedures LGA 02/09/2019 30/06/2020 $35,000 2019.07 Research into the Value of Libraries LGA $50,000 2019.08 Partnership Efficiency and Cost Pressure Research LGA 01/07/2019 01/05/2020 $50,000 Local Government Population Carrying Capacity Project 2019.09 LGA 19/07/2019 25/10/2019 $15,000 Scope Temporary and Special Events Guide with Red Tape 2019.10 LGA 17/05/2019 29/11/2019 $15,000 Reform. Local Government Population Carrying Capacity Project 2019.12 LGA 01/07/2019 01/01/2020 $15,000 Scope 2019.13 Making it easier to run temporary events LGA 01/07/2019 01/01/2020 $15,000 2019.14 i‐Responda app ‐ Council Resource Update LGA 01/07/2019 31/12/2019 $35,000 2019.15 i‐VISS developments LGA 01/07/2019 30/10/2019 $10,000 Funding the Future – A New Approach for Coastal Limestone Coast LGA 1/10/2019 31/12/2020 $35,000 2019.51 Management Sustainability and Expansion of the Connected Cities City of Prospect 1/10/2019 17/04/2020 $30,000 2019.54 Sensor Network 2019.55 Rating Equity Councils ability for Growth Legatus Group 1/10/2019 30/11/2019 $26,000 2019.56 Economic development strategies for regional airports University of Adelaide Business School 1/10/2019 30/06/2020 $30,000 2019.59 Our Inspiring Local Communities Australia Day Council of SA 1/10/2019 31/10/2020 $30,000 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 230

City of Charles Sturt, (on behalf of Cities 2019.63 Feasibility Study ‐ Animal Detention Facilities of Charles Sturt, Port Adelaide Enfield & 1/10/2019 14/02/2020 $25,500 West Torrens) 2019.64 Regional Youth Volunteering trial Legatus Group 1/10/2019 19/06/2020 $10,000 Local Government Information 2019.65 DPTI ePlanning integration 1/10/2019 31/01/2020 $48,000 Technology South Australia Inc 2019.66 Benchmarking User Experience in Public Library Services CERM PI (UniSA) 1/10/2019 30/10/2020 $36,251 South Australian Centre for Economic Scoping the potential of social procurement for local 2019.67 Studies (on behalf of the University of 1/10/2019 13/04/2020 $34,925 economic development Adelaide) 2019.68 Community Wellbeing Indicators Southern and Hills LGA 1/10/2019 30/06/2020 $50,000 Cost‐benefit analysis of establishing Materials Recovery 2019.72 Limestone Coast LGA 1/10/2019 28/02/2020 $26,000 Facilities in regional areas with low waste volumes. Environment Health Officer Emergency Management Environmental Health Australia, SA 2019.78 1/10/2019 28/02/2020 $10,000 Support Resources branch

$1,016,676 LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 231

6.10 Local Government Financial Indicators 2019

LGA Business From: Lea Bacon, Director Policy Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3B Benchmark, innovate and research Meeting: Annual General Meeting 31 October 2019 ECM: 688535 Attachment: 687105

Recommendation That the Annual General Meeting notes the report.

Discussion From 2006 to 2017, the LGA worked with South Australian councils and the state government on a comprehensive Financial Sustainability Program to implement the recommendations of the 2005 Independent Inquiry into Financial Sustainability of Local Government in South Australia. The attached SA Local Government Sector Financial Indicators Report 2019 (the report) delivers on a recommendation from the Inquiry that the LGA reports to each Annual General Meeting on the latest values, history and comparisons of key financial sustainability indicators for the sector as a whole. The report presents analysis of the most recent SA Local Government Grants Commission Database Reports 2017-18 and demonstrates the ongoing significant improvement in both the financial performance and financial position of the sector as a whole. In 2017-18:  The sector’s operating surplus ratio was 4.2 per cent – showing that existing levels of income are sufficient to cover day-to-day operations.  The sector’s net financial liabilities ratio was 27 per cent – showing that the net amount owed to others is only a modest portion of one-year’s income. The sector’s net amount owed to others of $630 million at 30 June 2018 is also very low when put in the context of infrastructure and other physical assets valued at $24.3 billion.  There were substantial variations in the asset sustainability ratio recorded by individual councils. While most councils are renewing and replacing their assets in either a satisfactory or optimal way, there are some councils that could improve on the capital spending needed to cost-effectively maintain desired and affordable service levels from their assets. The LGA has allocated resources for a program to assist members to enhance asset management and planning in 2019/20. In summary, the evidence shows that South Australian local government is living within its means, has a very low level of indebtedness, and generally is managing its assets satisfactorily.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 232

SA Local Government Sector

Financial Indicators Report 2019

September 2019

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1. Introduction

In order to provide an understanding of the current financial performance and position of the local government sector in South Australia, the Local Government Association (LGA) has undertaken analysis of the most recent SA Local Government Grants Commission Database Reports 2017-18. The following report highlights the very sound financial performance and position of the local government sector as a whole. The evidence shows that South Australian local government is living within its means, has a very low level of indebtedness, and generally is managing its assets satisfactorily. In 2017-18:-  the sector’s operating surplus ratio was 4.2 per cent – showing that existing levels of income are sufficient to cover day-to-day spending.  the sector’s net financial liabilities ratio was 27 per cent – showing that the net amount owed to others is only a modest portion of one-year’s income. The sector’s net amount owed to others of $630 million at 30 June 2018 also is very low when put in the context of infrastructure and other physical assets valued at $24.3 billion. It is comparable to a family living in a $500,000 house having a mortgage of only $13,000 and no other debts; and  there were substantial variations in the asset sustainability ratio recorded by individual councils. While most councils are renewing and replacing their assets in either a satisfactory or optimal way, there are some councils that could improve on the capital spending needed to cost-effectively maintain desired and affordable service levels from their assets.

2. Efficiency of local government

The local government sector in South Australia has an aspiration to be the most efficient sector of government. Sustaining good financial and asset management practices and seeking to continually enhance them are critical success factors for councils as they seek to improve the services they provide to their local communities. South Australian councils collectively manage an annual budget in excess of $2.3 billion and maintain infrastructure and other physical assets worth $24.3 billion. Taxation revenue raised by councils (from general and other rates on property) was $1,687 million in 2017-18. Together with other own-source funding (mainly user and statutory charges), approximately 87 per cent of local government operating revenue is from its own sources. The remaining revenue comes from grants from federal and state governments. The rates collected by councils nationally are less than 4 per cent of the total taxes paid by Australians. South Australian councils manage their finances conservatively. Local government can raise only one type of tax (council rates), has very low indebtedness, receives the lowest per capita level of state government grants in the nation, and relies on an ongoing extension of the Supplementary Local Roads Program to ensure a fair share of federal government grant funding.

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Decisions made by the State Government continue to apply pressure to council budgets. Key cost pressures from the State Government include the solid waste levy (which increased by 10 per cent on 1 July 2019 and will increase by a further 40 per cent on 1 January 2020), mandatory rate rebates required to be provided to Housing SA properties transferred to community housing providers, new legislated responsibilities in areas such as litter and nuisance control, and a shortfall in the reimbursement of council costs incurred in collecting the State’s Natural Resource Management (NRM) levy. Within this context, South Australian councils are doing a lot with a little and providing an increased range or level of services to a high standard. 3. Local government financial sustainability

The LGA worked with South Australian councils and the State Government on a comprehensive Financial Sustainability Program to implement the recommendations of the 2005 Independent Inquiry into Financial Sustainability of Local Government in South Australia1. This report delivers on one of the Inquiry's recommendations that the LGA reports to each Annual General Meeting on the latest values, history and comparisons of key financial sustainability indicators for the sector as a whole. Reform of financial management practices within local government in South Australia is ongoing to respond to changes in community expectations and best practice. Improvements have included accrual accounting, improved management of infrastructure and other assets, improved internal controls and better governance arrangements. Several councils are also using sophisticated performance measurement and benchmarking to improve business practices. A key objective for local government is the achievement and maintenance of the financial sustainability of South Australian councils, both collectively and individually. A council's long- term financial performance and position is sustainable where planned long-term service and infrastructure levels and standards are met without unplanned increases in rates or disruptive cuts to services.

Financial Sustainability Program Under its Financial Sustainability Program from 2006 to 2017, the LGA:-  prepared and updated a comprehensive series of information papers;  implemented projects to assist councils with financial and asset management reforms;  undertook training and briefing programs to further assist councils;  attracted Federal Government funding to further the financial sustainability reforms that were undertaken by South Australian councils; and  entered into an alliance with the Institute of Public Works Engineering Australia (IPWEA) to adopt internationally recognised approaches for preparing asset management policies and plans. More information about the Program and resources for councils can be found on the LGA’s Financial Sustainability Program webpage www.lga.sa.gov.au/FSP

1 http://www.lga.sa.gov.au/fsp

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4. Measuring Financial Performance

The most critical measure of local government financial performance is the annual operating result which measures the difference between day-to-day income and expenses for a financial year. The aggregate level of local government’s annual operating deficit reduced steadily from 2000- 01 (when expenses exceeded income by $75 million) until 2007-08 (when the operating deficit was eliminated). Subsequently, an approximate ‘break-even’ operating result was recorded for five years up until 2012-13. Since then, there has been a significant improvement in the financial performance of councils. A total of 56 councils recorded an operating surplus in 2017-18 compared with only 16 councils in 2000-01. Chart 1 provides aggregate data from 2000-01 until 2017-18 covering the sector’s operating surplus/(deficit). The data has been adjusted to remove the distortion otherwise caused by the irregular timing of receipt of Federal financial assistance grants (FAGs) received in some years since 2008-09. 120 Chart 1: Local Government Sector - Operating surplus/(deficit) 100

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5. Financial Indicators

The following information provides an update on the latest values, history and comparisons of key financial indicators for the local government sector as a whole. The LGA appreciates the assistance of the SA Local Government Grants Commission in providing this data.

In 2006, local government in South Australia adopted two key indicators covering its financial performance (operating surplus ratio) and financial position (net financial liabilities ratio).

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Chart 2 below provides aggregate data from 2000-01 until 2017-18 for these two indicators. Again, the data has been adjusted to remove the distortion otherwise caused by the irregular timing of receipt of Federal financial assistance grants (FAGs) in some years since 2008-09.

Chart 2: Local Government Sector - Financial Indicators

Net Financial Liabilities Ratio: Net Financial Liabilities as a % of Total Operating Revenue (adjusted for FAGs) Operating Surplus Ratio: Operating Surplus/ (Deficit) as a % of Total Operating Revenue (adjusted for FAGs) 45%

35%

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Indicator 1: Operating Surplus Ratio The operating surplus ratio is calculated as the percentage by which the annual operating surplus or deficit varies from total operating income. Guidance material provided to councils under the LGA’s Financial Sustainability Program suggests that councils generally should seek to achieve, on average over time, a target range for an operating surplus ratio of between 0 per cent and 10 per cent. As shown in Chart 2 above, the local government sector’s operating surplus ratio in 2017-18 was 4.2 per cent. This result compares with an operating surplus ratio of negative 8.3 per cent in 2000-01 and represents a very significant improvement in the financial sustainability of councils over a 17 year period.

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Chart 3 below shows the differences in the operating surplus ratios between categories of councils recorded in 2017-18. Chart 3: Operating Surplus Ratio (%): Differences between categories of Councils 2017-18

6%

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0% Urban - Capital Rural Agricultural - Rural Agricultural - Urban Regional All Councils City, Development Small & Medium Large & Very & Fringe Large

Indicator 2: Net Financial Liabilities Ratio Net financial liabilities represent the amount of money owed by councils to others less money held, invested or owed to councils. It is the most comprehensive measure of the indebtedness of a council as it includes items such as employee long service leave entitlements and other amounts payable as well as taking account of the level of a council’s cash and investments. At 30 June 2018, the level of net financial liabilities was $630 million. This is low when put in the context of local government infrastructure and other physical assets valued at $24.3 billion. The net financial liabilities ratio is a measure of the significance of the net amount owed at the end of a financial year compared with income for the year. As shown in Chart 2 (on the previous page), the net financial liabilities ratio for the local government sector in 2017-18 was 27 per cent which compares very favourably with a figure of 36 per cent in 2000-01. Net interest payments associated with councils’ net financial liabilities were $20.2 million in 2017-18. This represents 0.9 per cent of total operating expenses – a further reinforcement that, in aggregate terms, local government indebtedness is low. It also is worth noting that the level of net financial liabilities shown above does not take account of accumulated surpluses in the Local Government Finance Authority (LGFA) and the LGA ‘Schemes’. These accumulated surpluses represent financial assets belonging to the local government sector in South Australia.

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Chart 4 below shows the differences in the net financial liabilities ratios between categories of councils recorded in 2017-18. The chart highlights that many rural councils are adverse to incurring debt to help finance the cost of infrastructure. This may lead to these councils under- investing in infrastructure relative to what their operating revenue streams will allow. Their service levels will be lower as a result.

Chart 4: Net Financial Liabilities Ratio (%): Differences between categories of Councils 2017-18 35%

30%

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0% Urban - Capital Rural Agricultural - Rural Agricultural - Urban Regional All Councils City, Development Small & Medium Large & Very & Fringe Large

Provided operating deficits are avoided, there appears to be considerable scope for some councils to increase their level of borrowings (or liquidate some of their stock of cash and investments, which is equivalent to borrowing) to finance capital expenditure. Such borrowings could be undertaken for renewal or replacement of existing assets where a council’s Infrastructure and Asset Management Plan suggests that it is optimal to do so. Of course, where a council is not achieving an underlying operating surplus, or trending towards doing so in the medium term, then generally any capital expenditure on upgrading or expanding infrastructure needs to be modest and targeted, because it normally will lead to additional maintenance and depreciation costs.

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Capital Investment Expenditure Overall, capital expenditure in 2017-18 was a record high $825 million. The level of capital expenditure in 2017-18 was boosted by the highly successful State-Local Government Infrastructure Partnership in that year. One of the findings of the abovementioned 2005 Independent Inquiry into Financial Sustainability of Local Government was that capital investment expenditure on renewal and replacement of existing assets was significantly less than that needed to minimise whole-of-life- cycle costs of assets. Chart 5 shows the level of capital expenditure over the past ten years on renewal/replacement of existing assets on one hand and expenditure on new/upgraded assets on the other. This shows an increased expenditure on renewing and replacing existing assets in most years.

Chart 5: Local Government sector - Capital expenditure & depreciation 900 800 700 600 500

$M 400 300 200 100 0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Capital Expenditure on New/Upgraded Assets Renewal and Replacement Capital Expenditure Total Depreciation

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Indicator 3: Asset Renewal Funding Ratio A third financial indicator adopted by the sector in recent years covers the asset management performance of councils. The asset renewal funding ratio represents the level of capital expenditure on renewal and replacement of assets relative to the level of such expenditure identified as warranted in a council’s infrastructure and asset management plan. This indicator is a measure of whether a council is accommodating asset renewal and replacement in an optimal and cost effective way from a timing perspective, relative to the risk it is prepared to accept and the service levels it wishes to maintain. There are operational and other reasons why the asset renewal funding ratio result may vary between years. This may not necessarily detract from asset management performance if a council’s target is achieved over the medium term (e.g. over a rolling 3 or 5 year average). Data on an asset management performance indicator is available for 50 councils in 2017-18. Chart 6 below provides summary information for the asset renewal funding ratio in 2017-18. Of the 50 councils for which data on an asset sustainability ratio is available, 86 per cent of councils had a ratio higher than 60 per cent.

Chart 6: Asset Renewal Funding Ratio (%) 18

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0 under 40% 40% to 59% 60% to 79% 80% to 99% 100% to 119% 120% to 140% Over 140%

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A note on the differing financial performance of councils This report demonstrates the very significant improvement over the past 17 years in the financial performance and financial position of the sector as a whole. However, it needs to be emphasised that the current financial condition of individual councils varies. In addition, in the absence at this stage of reliable data covering asset management performance in some, mainly rural, councils, it is not possible for those councils to quantify the extent of any annual shortfalls against the optimal level of capital expenditure on renewal and replacement of existing assets to provide desired and affordable service levels. The LGA has allocated resources in 2019/20 for a project that will assist in building the capacity of councils in integrated asset management planning.

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6.11 Amendments to LGA Constitution and Ancillary Documents

LGA Business From: Lisa Teburea, Executive Director Public Affairs Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3C Improve LGA governance and operations with a focus on people, finances and our members Meeting: Annual General Meeting 31 October 2019 ECM: 688487 Attachments: 687695, 687691, 687690, 687694, 687686

Recommendation That the Annual General Meeting adopts amendments, as presented, to the: a. LGA Constitution b. GAROC Terms of Reference c. SAROC Terms of Reference d. LGA Meeting Procedures with the amendments to the LGA Meeting Procedures to take effect upon conclusion of the Annual General Meeting, and with the amendments to the LGA Constitution, GAROC Terms of Reference and SAROC Terms of Reference to take effect upon approval by the Minister.

Discussion The new LGA Constitution took effect following the October 2018 Annual General Meeting where the LGA membership adopted the Ancillary Documents to the Constitution, including the Terms of Reference for the South Australian Regional Organisation of Councils (SAROC), Terms of Reference for the Greater Adelaide Regional Organisation of Councils (GAROC), and the LGA Meeting Procedures. At the October 2018 Annual General Meeting, the LGA Secretariat acknowledged that further refinement of the Constitution and Ancillary Documents would be considered during their first year of operation to ensure they were operating effectively and to reflect the outcome of ongoing consultation with GAROC members on forming and defining regions within the metropolitan area. Proposed amendments to the LGA Constitution, Terms of Reference for SAROC, Terms of Reference for GAROC and LGA Meeting procedures have been approved by the LGA Board of Directors and are now presented for consideration and endorsement by members. Amendments to GAROC Regional Groupings The LGA Constitution and the GAROC Terms of Reference envisage member councils being organised into regional groups for the sole purpose of electing representatives to GAROC. At the time of adoption of the Constitution and Ancillary Documents, further consultation with GAROC members was needed to confirm their desire to form regions and define what those regions should be.

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 243 A draft proposal for regions was developed by members at the final MLGG meeting in September 2018 and written feedback was sought from councils within the GAROC region. The outcome of this consultation was inconclusive due to the mixed feedback received in the low number of responses received. GAROC adopted a process for further consultation with councils in May 2018 and a workshop with the GAROC grouping of councils was held in July 2019 where options for a regional structure were extensively explored and debated. Based on the outcomes of this workshop, the GAROC Committee resolved at its meeting on 2 September 2019 to request necessary changes to the LGA Constitution and GAROC Terms of Reference to enable the following outcomes to take effect for the 2020 GAROC elections: I. establish four (4) GAROC Regional Groupings of Members comprising: a. North – Playford, Salisbury, Tea Tree Gully, Gawler (population 356,657); b. West – Port Adelaide Enfield, Charles Sturt, West Torrens, Holdfast Bay (population 337,048); c. South – Onkaparinga, Mitcham, Marion (population 328,629); d. East – Prospect, Walkerville, Campbelltown, Norwood, Payneham & St Peters, Burnside, Unley, Adelaide Hills (population 240,969). II. The membership of GAROC will comprise two eligible members elected by a majority vote of the councils within each Regional Grouping of Councils. III. Retain a standing position for the Lord Mayor of the City of Adelaide as a member of GAROC. GAROC requested that these amendments be presented to the LGA Board of Directors for approval and authorisation to place as an item of business on the Agenda for the LGA Annual General Meeting on 31 October 2019 for endorsement by members. The LGA Board of Directors agreed to GAROC’s requests at its meeting on 19 September 2019. Consequential to the establishment of four (4) regional groupings, the election processes prescribed in the GAROC Terms of Reference require amendment to facilitate the election of 2 representatives from each of the four regional groupings (total 8 members), instead of the election of the 8 representatives with the most votes across GAROC. Transitional provisions have been drafted due to GAROC moving from a single regional grouping of members to four regional groupings of members, in order to preserve the membership of GAROC as determined under the current GAROC Terms of Reference until the end of the term (i.e. the 2020 Annual General Meeting). The transition also ensures that any casual vacancy that occurs on GAROC prior to the 2020 elections will be filled using the current election processes for a single regional grouping of members. The establishment of the GAROC regional groupings is for the purpose of electing representatives to GAROC only. The proposed amendment does not require metropolitan councils to adopt formal regional structures or amend the membership or purpose of any existing regional bodies. Other Administrative Amendments In addition to the amendments required to give effect to GAROC regional groupings for the 2020 elections, the LGA Board of Directors proposes amendments to the LGA Constitution and Ancillary Documents, outlined in the summary table and the marked documents, as attached. The amendments are mostly administrative in nature: the amendments fix wording errors or inconsistencies between documents, remove impediments to the efficient running of a General Meeting by reducing the time a member can speak to a motion without the leave of the meeting

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 244 and removing the requirement for the CEO to read the motion prior to a vote being taken, and provide new election processes for the new GAROC regional groupings in 2020. Ministerial approval of amendments In accordance with clause 1(4) of Schedule 1 to the Local Government Act 1999, amendments to the constitution and rules of the LGA cannot be altered or revoked without the approval of the Minister. Transitional provisions have been drafted to acknowledge that the commencement of amendments to the LGA Constitution, GAROC Terms of Reference and SAROC Terms of Reference is subject to both member endorsement and Ministerial approval, so commencement will occur when both approvals are satisfied. The Minister has previously asked that requests for Ministerial approval to alter the constitution and rules should only be sought after LGA members have endorsed the change. The LGA Secretariat has notified the Office of Local Government that amendments will be considered by members at the AGM and will formally consult with the Minister if the amendments are endorsed by members.

Financial and Resource Implications This activity has been anticipated in the LGA’s work program and resources are available to progress this work.

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Summary of changes to LGA Governance Documents

Reference Action Intent LGA Constitution cl. 3.1 Amend definition of SAROC and GAROC Ensure reference to SAROC and GAROC refer to the committees as Regional Organisation (singular) and Regional Organisations (plural) consistently. cl. 3 Definition of “Ordinary General Meeting” - Minor correction update clause reference to 10.1.1 cl. 3.1 Definition of SAROC for “Region Organisation” Ensure reference to SAROC and GAROC refer to the substitute “Regional Organisation” committees as Regional Organisation (singular) and Regional Organisations (plural) consistently. cl. 3.1 Definition of “Special General Meeting” - Minor clarification update clause reference to 10.1.2 cl.11 Remove the phrase “reasonable opportunity” Remove ambiguity cl 19.7 omit “or his or her nominee (also being a Remove reference to the Lord Mayor appointing a nominee to Council Member of City of Adelaide)” his or her position as a member of GAROC because this is inconsistent with the Terms of Reference for GAROC. cl. 25.3 Insert comma Minor correction cl. 27.1 Insert full stop Minor correction cl. 27.7 Insert comma Minor correction cl. 27.3.6 Amend the clause for clarity Minor redrafting cl. 35.2 Insert “this” before “clause 35.2” Minor correction cl. 41.2 Change “Effective Date” to “Effective Time” Corrects use of defined term cl. 41.3 Insert transitional provisions A transitional provision is required to validate the current membership of GAROC and preserve the current members’ terms of office until the 2020 AGM. LGA Meeting cl. 1.5 For “Joske’s Law and Procedure and Meetings Minor correction Procedures in Australia” substitute “Joske’s Law and Procedure in Meetings in Australia” cl.2.1.1 Insert comma Minor correction cl.2.2.1 Insert comma Minor correction cl.2.5.5 Change ‘confidentially’ to ‘confidentiality’ Minor correction cl.3 Remove the phrase “reasonable opportunity” For consistency with the LGA Constitution. cl.4.1.1 Amend ‘web site’ to ‘website’ Minor correction

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cl.5.2.1 Add ‘at the General Meeting’ at the end of the Minor clarification clause cl.5.2.4 Insert colon Minor correction cl. 5.2.5 For “5 minutes” substitute “3 minutes” Reduce the time a member can speak at a general meeting cl.5.2.6 Insert ‘subject to clause 5.2.10,’ To clarify that the preclusion of a member who has spoken to a motion from amending the motion does not alter the right under clause 5.2.10 for the mover of a motion (leave of the meeting) to vary the motion. cl. 5.3.1 For “5 minutes” substitute “3 minutes” Reduce the time a member can speak at a general meeting cl. 5.4.1 Omit clause 5.4.1 Do not require the CE to read out the motion before a vote is taken cl.7.1.1 Replace ‘procedure’ with ‘procedures’ Minor correction cl.7.1.2 Replace ‘procedure’ with ‘procedures’ Minor correction cl.7.2.1 Replace ‘procedure’ with ‘procedures’ Minor correction cl.7.2.2 Replace ‘procedure’ with ‘procedures’ Minor correction SAROC Terms of cl 1 For “Region Organisation” substitute “Regional Ensure reference to SAROC and GAROC refer to the Reference Organisation” (twice occurring) committees as Regional Organisation (singular) and Regional Organisations (plural) consistently. cl. 1 Remove reference to date on which the The reference to the adoption date limits the version of the Constitution was adopted Constitution which supports the terms of reference. By removing the adoption date, the terms of reference will be supported by the version of the Constitution in operation from time to time. cl. 2.2 Remove capital on “clause” Minor correction cl. 2.5 Insert definitions of “SAROC Region” and These terms are used in the terms of reference. Definitions are “SAROC Regional Grouping” provided for clarity. cl. 2.6 Renumbered clause (previously clause 2.5) Minor correction cl. 4.1 Word “regions” replaced with “SAROC Region” Use of new defined term for clarity cl.4.2 Delete word “SAROC” Use of defined term for clarity. Reference to SAROC is unnecessary as the terms of reference as a whole only operate in relation to SAROC. cl. 4.2 Amend to use defined term “Regional Use defined term for clarity Grouping of Members” cl. 4.2 Phrase “of members in the SAROC Regional To improve clarity Grouping to” is replaced by “as members of” cl. 4.3 In clause 4.3 clarify that each member may Member councils (of SAROC) are to be only able to nominate only nominate one person for a position on one person for SAROC. SAROC.

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cl. 4.3.2 Replace “SAROC regions” with “SAROC Use of new defined term for clarity Regional Groupings” cl. 4.3.3 Replace “SAROC Regional Group” with Correct use of defined terms “Regional Grouping of Members” cl. 4.4.2 Replace “SAROC Regional Group” with Correct use of defined terms “Regional Grouping of Members” cl. 4.4.3 Update clause reference and insert comma Minor corrections cl. 4.4.4 For “described 4.2.1” substitute “described in Minor correction clause 4.2.1” cl. 4.4.4 Replace “the Regional Grouping of Members” Minor correction with “a Regional Grouping of Members” cl. 4.4.5 Replace “regional groupings” with “SAROC Use of new defined term for clarity Regional Grouping” cl. 4.4.6 Replace “regional groupings” with “SAROC Use of new defined term for clarity Regional Grouping” cl. 4.4.6 Clarify that the 2 candidates are from a Amendment for clarification Regional Grouping of Members cl. 4.4.6(b) Insert “; and” at the end of the paragraph Minor correction cl. 4.4.8 Amend clause to clarify reference to Executive Amended for clarity Officers cl. 4.7.1 Replace “SAROC Regional Group” with Correct use of defined terms “Regional Grouping of Members” cl. 4.7.3 Replace “SAROC Regional Group” with Correct use of defined terms “Regional Grouping of Members” cl. 5.1.2(a) Replace “this Constitution” with “the Minor correction Constitution” cl. 5.2.2 Replace “expenses” with “expense” Minor correction cl. 6.1.2 Replace “SAROC Regional Group” with Use of new defined term for clarity “SAROC Regional Grouping” cl. 6.5.1 Replace ”SAROC region” with “SAROC Use of defined terms for clarity Region”, capitalise “Members” and “SAROC Regional Group” with “SAROC Regional Grouping” cl. 6.5.2 Replace “SAROC Regional Group” with Use of defined terms for clarity “SAROC Regional Grouping” and capitalise “Members”

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cl. 9.8 Replace “SAROC Regional Grouping” with Members of SAROC are elected by the Regional Grouping of “Regional Grouping of Members” Members listed in the schedule. cl. 9.10.2 Replace ”regions” with “SAROC Region” Use of new defined term for clarity Schedule Amend headings to provide distinction Amended for clarity between “SAROC Regional Grouping” and “Regional Grouping of Members” GAROC Terms of cl.1 For “Region Organisation” substitute “Regional Ensure reference to SAROC and GAROC refer to the Reference Organisation” (twice occurring) committees as Regional Organisation (singular) and Regional Organisations (plural) consistently. cl. 1 Remove reference to date on which the The reference to the adoption date limits the version of the Constitution was adopted Constitution which supports the terms of reference. By removing the adoption date, the terms of reference will be supported by the version of the Constitution in operation from time to time. cl 2.2 Remove capital on “clause” Minor correction cl. 2.5 Insert definitions of “GAROC Region” and These terms are used in the terms of reference. Definitions are “GAROC Regional Grouping” provided for clarity. cl. 2.6 Renumbered clause (previously clause 2.5) Minor correction cl. 4.1 Word “region(s)” replaced with “GAROC Use of new defined term for clarity Region” cl.4.2 Delete word “GAROC” Use of defined term for clarity. Reference to GAROC is unnecessary as the terms of reference only operate in relation to GAROC. cl. 4.2 Amend to use defined term “Regional Use defined term for clarity Grouping of Members” cl. 4.2 Phrase “of members in the GAROC Regional To improve clarity Grouping to” is replaced by “as members of” cl. 4.3 Amend to state: each council which is a Clarify that member councils (of GAROC) are to be only able to member of a GAROC Regional Grouping may nominate one person for GAROC. nominate a candidate for membership of GAROC, provided that a person nominated as a member of GAROC must be a representative of a member on the relevant GAROC Regional Grouping. (for consistency with SAROC ToR) cl. 4.3.2 Replace “GAROC” with “GAROC Regional Use of new defined term for clarity Grouping” cl 4.4.2 Replace “nominated in” with “nominated by’ Minor correction cl. 4.4.3 Insert comma Minor correction

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cl. 4.4.4 For “described 4.2.1” substitute “described in Minor correction clause 4.2.1” cl. 4.4.4 Replace “the Regional Grouping of Members” Minor correction with “a Regional Grouping of Members” cl. 4.4.5(b)(i) Delete reference to “candidate” Redundant word. There will always be multiple candidates (or there would be no need to hold an election) cl. 4.4.7 Insert equivalent of clause 4.4.8 of SAROC Amended for consistency with SAROC Terms of Reference Terms of Reference cl. 4.7.1 Replace “GAROC Regional Group” with Correct use of defined terms “Regional Grouping of Members” cl. 4.7.3 Insert comma after “GAROC” where first Minor correction occurring cl. 5.1.2(a) Replace “this Constitution” with “the Minor correction Constitution” cl. 5.2.2 Replace “expenses” with “expense” Minor correction cl. 6.1.2 Replace “GAROC Regional Group” with Use of new defined term for clarity “GAROC Regional Grouping” cl. 6.5.1 Replace “GAROC region” with “GAROC Use of defined terms for clarity Region”, capitalise “Members” and “GAROC Regional Group” with “GAROC Regional Grouping” cl. 6.5.2 Replace “GAROC Regional Group” with Use of defined terms for clarity “GAROC Regional Grouping” and capitalise “Members” cl. 9.8 Replace “GAROC Regional Grouping” with Members of GAROC are elected by the Regional Grouping of “Regional Grouping of Members” Members listed in the schedule. cl. 9.10.2 Replace “region(s)” with “GAROC Region” Use of new defined term for clarity cl. 12 Insert transitional provisions Transitional provisions are required to preserve the existing membership of GAROC once the amendments to the terms of reference commence and until the 2020 GAROC elections. Schedule Amend headings to provide distinction Amended for clarity between “GAROC Regional Grouping” and “Regional Grouping of Members” Schedule Insert the following regions: To give effect to GAROC regional groupings for the purposes of North —Playford, Salisbury, Tea Tree Gully, electing representatives to GAROC. Gawler

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West — Port Adelaide Enfield, Charles Sturt, (Reference: GAROC Committee Meeting Papers, 2 September West Torrens, Holdfast Bay 2019, item. 5.2) South—Onkaparinga, Mitcham, Marion East—Prospect, Walkerville, Campbelltown, Norwood, Payneham & St Peters, Burnside, Unley, Adelaide Hills cl. 4.4 Amend section 4.4. to give effect to GAROC To give effect to GAROC regional groupings for the purposes of regional groupings for the purposes of electing electing representatives to GAROC. representatives to GAROC. Elections to be similar to SAROC, however without the role of (Reference: GAROC Committee Meeting Papers, 2 September regional LGAs in conducting elections (which 2019, item. 5.2) will instead be run by LGA as necessary). Features include:  2 representatives to be elected from each of the 4 regions (resulting in 8 members total) based on majority vote of councils with each Regional Grouping of Members.  If 2 nominees submitted in region, those positions duly elected.  Where more than 2 nominees, LGA will conduct an election for relevant Regional Grouping of Members  Consequential – need to change 4.2.1 re Membership being 2 from each Regional Grouping of Members  Retain standing position of Lord Mayor

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Local Government

Association of South Australia

Constitution and Rules as at 5pm [time]pm 13 April 2018[date]

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Table of Contents I Preliminary ...... 1 1. Association ...... 1 2. Constitution ...... 1 3. Interpretation ...... 1 4. Object ...... 3 5. Functions ...... 4 6. Powers ...... 4 7. Dissolution ...... 6 II Membership of the LGA ...... 6 8. Membership ...... 6 III Meetings of the LGA ...... 8 9. Annual General Meeting ...... 8 10. Other General Meetings ...... 8 11. Venue of General Meetings ...... 8 12. Appointment of Delegates ...... 8 13. Quorum ...... 9 14. Chair ...... 9 15. Adjournments ...... 9 16. Business of General Meetings ...... 9 17. Voting ...... 10 18. Procedure at Meetings ...... 10 19. Regional Organisations of Councils ...... 10 20. Annual report ...... 11 IV The Board ...... 12 21. Board of Directors ...... 12 22. Functions of the Board of Directors ...... 12 23. Duties of the Board of Directors ...... 13 24. Powers of the Board of Directors ...... 13 25. Meetings of the Board of Directors ...... 14 26. Circulating resolutions ...... 14 27. Delegations ...... 14 28. Nominations for the Office of President ...... 15

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29. Election for office of President ...... 16 30. Term of Office of Directors ...... 17 31. Casual Vacancy ...... 18 32. Leave of absence ...... 19 33. Appointment of a Chief Executive ...... 19 34. Audit ...... 20 35. Dispute resolution ...... 20 36. Administration ...... 21 37. Curing of irregularities ...... 21 38. Interpretation ...... 21 39. Membership of the LGA ...... 22 40. President ...... 22 41. SAROC and GAROC ...... 22 42. Resolutions ...... 23 43. Delegations ...... 23 44. Audit Committee ...... 23 45. Auditor ...... 23 I Preliminary ...... 1 1. Association ...... 1 2. Constitution ...... 1 3. Interpretation ...... 1 4. Object ...... 3 5. Functions ...... 4 6. Powers ...... 4 7. Dissolution ...... 6 II Membership of the LGA ...... 6 8. Membership ...... 6 III Meetings of the LGA ...... 8 9. Annual General Meeting ...... 8 10. Other General Meetings ...... 8 11. Venue of General Meetings ...... 8 12. Appointment of Delegates ...... 8 13. Quorum ...... 9

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14. Chair ...... 9 15. Adjournments ...... 9 16. Business of General Meetings ...... 9 17. Voting ...... 10 18. Procedure at Meetings ...... 10 19. Regional Organisations of Councils ...... 10 20. Annual report ...... 12 IV The Board ...... 12 21. Board of Directors ...... 12 22. Functions of the Board of Directors ...... 12 23. Duties of the Board of Directors ...... 13 24. Powers of the Board of Directors ...... 13 25. Meetings of the Board of Directors ...... 14 26. Circulating resolutions ...... 14 27. Delegations ...... 15 28. Nominations for the Office of President ...... 16 29. Election for office of President ...... 16 30. Term of Office of Directors ...... 17 31. Casual Vacancy ...... 18 32. Leave of absence ...... 19 33. Appointment of a Chief Executive ...... 19 34. Audit ...... 20 35. Dispute resolution ...... 20 36. Administration ...... 21 37. Curing of irregularities ...... 21 38. Interpretation ...... 21 39. Membership of the LGA ...... 22 40. President ...... 22 41. SAROC and GAROC ...... 22 42. Resolutions ...... 22 43. Delegations ...... 23 44. Audit Committee ...... 23 45. Auditor ...... 23

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I Preliminary 1. Association The Association is the "Local Government Association of South Australia" ("LGA") which is constituted as a body corporate and a public authority pursuant to the Local Government Act 1999 for the purpose of promoting and advancing the interests of local government in South Australia. 2. Constitution 2.1 This Constitution is binding: 2.1.1 as between the LGA and each Member; and 2.1.2 as between each Member and each other Member. 2.2 This Constitution may be altered only: 2.2.1 by resolution: a. passed at a General Meeting of which at least 30 days’ notice has been given to Members; and b. passed by at least 75% of the votes cast by Members at that General Meeting; and 2.2.2 with approval of the Minister under subclause 1(4) of Schedule 1 of the Local Government Act 1999. 2.3 In any circumstances in which this Constitution is silent, incapable of taking effect or being implemented according to its strict provisions, the Board of Directors may determine what action may be taken to ensure the effective administration of the LGA. 2.4 Despite any other provision of this Constitution, the Board of Directors may as it thinks fit suspend or modify the operation of any provision of this Constitution in order to provide for a matter related or ancillary to a proclamation made by the Governor under Part 1 of Chapter 3 of the Local Government Act 1999. 3. Interpretation 3.1 In this Constitution, unless the contrary intention is apparent: “Annual General Meeting” means a meeting of Members described in clause 9. “Audit Committee” is the committee established by the Board of Directors in accordance with clause 24.3.1. “Board of Directors” means the persons appointed as the governing body of the LGA in accordance with this Constitution as described in clause 21.

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“Chair” means the person referred to in clause 14. “CEO Advisory Group” means the committee established in accordance with clause 24.3.2. “Close of Nominations” means the date and time at which nominations for the office of President close under clause 28.7. “Casual Vacancy” means a vacancy in the office of a member of the Board of Directors due to a circumstance contemplated in clause 31.1. “Community Council” means the governing entity for each of (a) the Anangu Pitjantjatjara Community; (b) the Community; (c) the Yalata Community; (d) the Nepabunna Community; (e) the Gerard Community; and (f) the Outback Communities Authority. “Council” means a Council constituted under the Local Government Act 1999. “Council Member” means a member of the governing body of a Member. “Chief Executive” means the Chief Executive of the LGA and, where the context allows, includes a person acting in that position. “Delegate” means a person appointed to represent a Member at a General Meeting pursuant to clause 12.1. “Director” means a member of the Board of Directors. “Fees” means moneys payable by a Member to the LGA from time to time, including annual subscriptions, special purpose levies and services charges. “GAROC” means the “Greater Adelaide Regional Organisation of Councils” described in clause 19. “GAROC Terms of Reference” means the terms of reference for GAROC referred to in clause 19.4. “General Meeting” means a meeting of the Members of the LGA being an Annual General Meeting, an Ordinary General Meeting or a Special General Meeting. “Immediate Past President” means the person who is the immediately preceding President of the LGA. “LGA” means the Local Government Association of South Australia. “LGA Office” means the resources engaged by the Chief Executive to ensure that the LGA is enabled to adequately perform its functions. "Member” means a Council or a Community Council which has applied for, been granted and retains membership in accordance with this Constitution and the Membership Proposition. “Membership Proposition” means the terms of membership of the LGA endorsed by the Members. “Misconduct” means being:

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(a) found guilty of an offence involving dishonesty or other offence which the Board of Directors resolves to be an offence which, committed by a Director, would bring the LGA or local government into disrepute; (b) being absent from 3 successive meetings of the Board of Directors without leave of the Board of Directors; or (c) engaging in conduct which the Board of Directors resolves to be conduct likely to bring the LGA or local government into disrepute. “Object” is the object of the LGA as set out in clause 4. “Ordinary General Meeting” is a meeting of Members convened under clause 10.1.110.1. “President” means at any time the person holding office as LGA President. “Presiding Member” means the presiding member of a Council or Community Council. “Regional Groupings of Members” means the regional groups described in clause 19.3. “Regional Organisation of Councils” means either SAROC or GAROC as described in clause 19 and “Regional Organisations of Councils” means both SAROC and GAROC. “Register of Delegates” means the register maintained by the LGA in accordance with clause 12.3. “SAROC” means the “South Australian Regional Organisation of Councils” as described in clause 19. “SAROC Terms of Reference” means the terms of reference for SAROC referred to in clause 19.4. “Special General Meeting” means a meeting of Members described in clause 10.1.210. 3.2 In this Constitution, unless the contrary intention is apparent: 3.2.1 words importing the singular include the plural and vice versa; 3.2.2 a power to appoint includes a power to dismiss; and 3.2.3 a reference to any document, including legislation, is a reference to that document as amended or replaced from time to time. 4. Object The object of the LGA is to achieve public value through the promotion and advancement of the interests of local government by: 4.1 advocating to achieve greater influence for local government in matters affecting councils and communities; 4.2 assisting Members to build capacity and increase sustainability through integrated and coordinated local government; and

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4.3 advancing local government through best practice and continuous improvement. 5. Functions The LGA must undertake its functions for the purpose of achieving the Object. The functions of the LGA are to: 5.1 advocate and provide leadership for local government in South Australia, leading to strong engaged communities served by efficient and collaborative Councils and Community Councils; 5.2 advocate for an autonomous, effective and democratic system of local government in South Australia to meet contemporary community needs; 5.3 encourage and promote an efficient, effective and sustainable system of local government in South Australia; 5.4 promote and protect the interests of local government and its Members and the communities they represent; 5.5 encourage and help local government to engage with, and respond to, the needs of the community; 5.6 develop and maintain consultation and co-operation between local government and the State and Commonwealth governments and their agencies; 5.7 assist Members to develop and maintain their financial sustainability and for the advancement of local government; 5.8 undertake any business activity which contributes to the Object; 5.9 represent Members of the LGA and local government to the public and the State and Commonwealth governments; 5.10 act as an advocate for Members and the local government community to address contemporary needs; 5.11 facilitate engagement and collaboration by and between Members as to their common interests; 5.12 encourage, assist, promote and foster the achievement and maintenance of the highest levels of integrity, justice, competence, effectiveness and efficiency of local government; 5.13 undertake or promote any activity which the Board of Directors determines to be for the benefit or interest of Members and local government in South Australia; and 5.14 undertake any function as may be vested in the LGA by statute. 6. Powers For the purposes of fulfilling the Object and undertaking its functions, the LGA has the power to:

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6.1 acquire, hold, deal with, and dispose of, any real or personal property; 6.2 administer any property on trust; 6.3 operate accounts with any financial institution including the Local Government Finance Authority; 6.4 levy annual subscriptions, special purpose levies and service charges upon Members; 6.5 accept gifts of money or property; 6.6 invest money in any way considered prudent by the Board of Directors, including with the Local Government Finance Authority; 6.7 borrow and raise money as required by the LGA having regard to the financial sustainability of the LGA; 6.8 give security for the discharge of liabilities incurred by the LGA; 6.9 make application to, and accept grants and loans from, the State government and the Commonwealth government for the benefit of any Member or the LGA; 6.10 determine remuneration for Directors or members of committees established under this Constitution; 6.11 employ a Chief Executive and the staff of the LGA Office; 6.12 engage professional advisors; 6.13 appoint agents to transact any activities of the LGA; 6.14 insure against any risk; 6.15 enter into any contract it considers necessary or desirable; 6.16 subject to the Corporations Act 2001 (Cth), establish or dissolve incorporated subsidiaries and determine policies and procedures to apply to subsidiaries; 6.17 advocate for changes to State government and Commonwealth government legislation; 6.18 provide services to Members with or without reward; 6.19 publish material of interest to Members and for the purpose of promoting the LGA and the system of local government; 6.20 enter into any arrangements or obtain any privileges and concessions which the LGA considers to be desirable for the LGA on behalf of Members; 6.21 mediate disputes between Members or within a Member’s governing entity; 6.22 instigate or defend legal proceedings; 6.23 manage any dispute to which it is party, including by referral to, and participation in, mediation, conciliation or arbitration; 6.24 provide resourcing for the LGA Office;

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6.25 establish and maintain policies, procedures, terms of reference, membership conditions and guidelines as contemplated by this Constitution or as are conducive to the achievement of the Object; 6.26 associate or collaborate with other associations and organisations having objects consistent with, or complementary to, the Object, including by way of incorporated or unincorporated joint venture or other form of alliance; 6.27 exercise any other power vested in the LGA by statute; and 6.28 do any other thing which is related, incidental or conducive to the attainment of the Object, provided that the LGA may not distribute its assets to Members other than in the circumstances stated in clause 7.2. 7. Dissolution 7.1 The LGA may be dissolved by resolution: 7.1.1 passed at a General Meeting of which at least 30 days’ notice has been given; and 7.1.2 passed by at least 75% of the votes cast by Members entitled to vote on the resolution. 7.2 In the event of dissolution, and after payment of all debts and liabilities, any surplus assets shall be returned to Members in proportion to the annual subscription paid in the financial year prior to the passing of the resolution to dissolve. 7.3 In the event of a dissolution where there are insufficient funds to pay all debts and liabilities of the LGA, a levy on Members shall be determined to cover the deficiency, such levy being in proportion to the annual subscription paid in the financial year prior to the passing of the resolution to dissolve.

II Membership of the LGA 8. Membership 8.1 Each Council and Community Council is entitled to apply in writing to the Board to be a Member of the LGA, except as provided in clause 8.2. 8.2 A Council or Community Council which has had its membership application rejected or membership revoked under this clause 8 may not reapply for membership for the same financial year that the membership the subject of the application or revocation would have operated, unless otherwise determined by the Board of Directors. 8.3 Membership operates for a 12 month period commencing on 1 July. 8.4 A Member must provide to the LGA such information and support as the LGA reasonably requests to carry out the Object.

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8.5 Subject to confidentiality requirements as determined by the Board of Directors or in accordance with terms of reference for a committee, each Member is entitled to access approved minutes of General Meetings, the Board of Directors and committees of the LGA. 8.6 Each Member will pay to the LGA: 8.6.1 the annual subscription determined by the Board of Directors applicable to that Member by 1 August for the financial year in which the membership will operate (unless otherwise determined by the Board of Directors); and 8.6.2 by the due date for payment, any special purpose levy or service charge relevant to that Member. 8.7 The Board of Directors may: 8.7.1 reject an application for membership of any Council or a Community Council; or 8.7.2 revoke the membership of a Council or a Community Council, on a basis provided for in the Membership Proposition. 8.8 Membership of the LGA will be automatically revoked for a Member who fails to pay an annual subscription or special purpose levy to the LGA by the due date for payment (or such later date as may be determined by the Board of Directors). 8.9 Revocation of a Membership does not: 8.9.1 relieve the former Member from any obligation to pay Fees to the LGA which accrued prior to the date of revocation; or 8.9.2 entitle the former Member to a refund of any Fee previously paid to the LGA. 8.10 A Council or a Community Council may resign from the LGA upon giving written notice to the LGA. A resignation takes effect as provided for in the Membership Proposition. 8.11 Any Member who resigns its Membership during a financial year: 8.11.1 remains liable to pay: a. the full annual subscription and any annual special purpose levy for the financial year in which the resignation takes effect; and b. any service charges payable for a service provided by the LGA up until the date on which the service ceases; and 8.11.2 is not entitled to refund of any Fee previously paid to the LGA. 8.12 The LGA is not obliged to provide any service to a Council or Community Council which is not a Member of the LGA. 8.13 The LGA may cease providing a service to a Member if the Member fails to pay a service fee in respect of the services to the LGA by the due date.

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III Meetings of the LGA 9. Annual General Meeting 9.1 A meeting of the Members of the LGA to be called the “Annual General Meeting” shall be held once in each year, at a time, date and place determined by the Board of Directors. 9.2 The Chief Executive shall at least 30 days before the date fixed for the holding of the Annual General Meeting advise each Member of the time, date and place of the meeting and the proposed business of the meeting. 10. Other General Meetings 10.1 The Board of Directors of the LGA has the power to call: 10.1.1 an Ordinary General Meeting each year upon at least 30 days’ notice in writing being given to all Members by the Chief Executive; or 10.1.2 Special General Meeting of the LGA for a stated purpose upon at least 7 days’ notice in writing being given to all Members by the Chief Executive.

10.2 At least 10 Members may, by a notice in writing to the Chief Executive request a Special General Meeting stating the business to be considered and determined at the Special General Meeting. Within 14 days from the receipt of the notice, the Chief Executive must call a meeting of the Members to be held within 30 days by advising each Member of the time, date and place of the meeting and the stated business of the meeting. 10.3 No business other than the stated business may be considered or determined at a Special General Meeting. 11. Venue of General Meetings The LGA may hold a General Meeting at 2 or more venues using any technology that gives enables the Members attending each venue a reasonable opportunity to participate in the meeting. 12. Appointment of Delegates 12.1 Each Member may appoint a person to act as the delegate for the Member at a General Meeting, and may at any time revoke such appointment and appoint another person as its delegate. 12.2 To be eligible for appointment as a delegate, a person must be a Council Member. 12.3 Each Member shall give notice in writing to the LGA of the person appointed to act as its delegate and the LGA will maintain a register of delegates.

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12.4 A Member must notify the LGA in writing if a person’s appointment as a delegate has been revoked by the Member, a person has resigned from the role of delegate or the person appointed as a delegate ceases to be a Council Member. 12.5 If a Delegate is unable to attend a General Meeting, the Member may, by giving written notice to the LGA, appoint another person to act as a substitute for the Delegate at the meeting. The appointment will only be valid for the General Meeting specified in the written notice. A person appointed under this clause 12.5 will be a “Delegate” for the purposes of this Constitution in respect of that General Meeting. 13. Quorum 13.1 Subject to this clause 13, no business shall be transacted at any General Meeting unless at least half of the Delegates on the Register of Delegates, plus 1 Delegate are present. 13.2 A quorum present at the commencement of a General Meeting is taken to be present throughout the meeting unless the Chair of the meeting declares otherwise. 13.3 If no quorum is present at a General Meeting within 30 minutes after the time appointed for the commencement of a meeting, the Chair may adjourn the meeting to a determined date, time and place, provided that the date is no earlier than 7 days after the adjourned meeting or in the case of a General Meeting convened to consider a special resolution no earlier than 30 days after the notice of the adjourned meeting is provided to Members. 13.4 Notice of an adjourned meeting with the date, time and place at which the meeting will be recommenced must be provided to all Members. 13.5 Any business which could have been transacted at a meeting which has been adjourned because of the absence of a quorum under clause 13.3 may be transacted on the recommencement of the meeting as notified under clause 13.4 notwithstanding there is no quorum present at that meeting. 14. Chair The President shall preside at all General Meetings and meetings of the Board of Directors, but in his or her absence a member of the Board of Directors chosen by the Board of Directors shall preside at the meeting. 15. Adjournments Subject to clause 13, the Delegates present at any General Meeting may from time to time by resolution adjourn the meeting to a determined date and time. 16. Business of General Meetings 16.1 The business of a General Meeting will be to consider items of strategic importance to local government and the LGA as recommended by SAROC,

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GAROC or the Board of Directors and matters which must be determined under this Constitution at a General Meeting. 16.2 Any Member may propose an item of business for an Annual General Meeting or an Ordinary General Meeting to SAROC, GAROC or the Board of Directors. 16.3 No business shall be brought before a General Meeting of the LGA unless: 16.3.1 it has been placed on the agenda of an Annual General Meeting or an Ordinary General Meeting by SAROC, GAROC or the Board of Directors taking into account the purpose of a General Meeting set out in clause 16.1; or 16.3.2 the business is as stated in the notice of a Special General Meeting, given in accordance with clause 10. 17. Voting 17.1 Each resolution considered at a General Meeting will be decided by the majority value of the votes of the Delegates present at the meeting and voting on the resolution. 17.2 Votes of Delegates at meetings of the LGA shall have the following values: 17.2.1 Delegates of Members whose areas have populations up to 10,000 people - value of 1 vote; 17.2.2 Delegates of Members whose areas have populations of between 10,001 and 50,000 people - value of 2 votes; and 17.2.3 Delegates of Members whose areas have populations of over 50,001 people - value of 3 votes. 17.3 For the purposes of this clause, the population of each Member area shall be the population stated in the latest estimated population figures published by the Australian Bureau of Statistics. 18. Procedure at Meetings The Board of Directors may, consistent with the Constitution, make, vary or revoke any meeting procedures regulating the mode and conduct of proceedings at any General Meeting and meetings of the Board of Directors, SAROC or GAROC. 19. Regional Organisations of Councils 19.1 There are 2 regional organisations of Members: 19.1.1 SAROC; and 19.1.2 GAROC. 19.2 The role of SAROC and GAROC is regional advocacy, policy initiation and review, leadership, engagement and capacity building in the regions. 19.3 Members will be organised into regional groups for the purpose of participating in the processes for the election of SAROC and GAROC. The

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Regional Groupings of Members are not formed to undertake any other function. 19.4 Terms of reference for SAROC and GAROC as approved by the Board of Directors will: 19.4.1 list the Regional Groupings of Members comprising SAROC and GAROC respectively; and 19.4.2 provide for: (a) the conduct of business including requirements for strategic and annual business planning and budgeting, and reporting requirements; (b) the receipt and consideration of proposals for policy development for the betterment of local government from Members; (c) the referral of proposals to the Board of Directors or General Meetings; (d) the election of members to SAROC and GAROC; (e) the appointment of a chairperson; and (f) any other matters which the Board of Directors considers to be prudent or convenient. 19.5 The terms of reference for SAROC and GAROC will be presented to the Members at a General Meeting for ratification annually (or more frequently as determined by the Board). 19.6 Each Regional Grouping of Members will elect 2 Council Members as members of SAROC or GAROC (as relevant) provided that each person elected is from a different Member. 19.7 In addition to the membership determined under clause 19.6, the Lord Mayor of the City of Adelaide or his or her nominee (also being a Council Member of the City of Adelaide) will be a member of GAROC. 19.8 The term of office for members of SAROC and GAROC shall commence after the Annual General Meeting of the year in which elected. Each Council Member will serve for a period of 2 years or until a circumstance causing a Casual Vacancy occurs. 19.9 SAROC and GAROC will be supported by the LGA Office. 20. Annual report The LGA will make publicly available on or before 30 November in each year an annual report adopted by the Board of Directors in respect of the operations of the LGA for the preceding financial year.

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IV The Board 21. Board of Directors 21.1 The Board of Directors is the governing entity of the LGA. 21.2 The Board of Directors shall consist of: 21.2.1 the President; 21.2.2 the Immediate Past President; 21.2.3 the chairperson of SAROC and the chairperson of GAROC; and 21.2.4 6 additional persons (each of which must be a Council Member) with relevant business and governance experience elected in equal proportions from the Council Members of SAROC (3 persons) and the Council Members of GAROC (3 persons). 21.3 The role of the Board of Directors is to oversee corporate governance of the LGA and provide strategic direction and leadership. The Directors do not represent SAROC, GAROC or a specific Member or Members. 21.4 Each Director must: 21.4.1 undertake his or her role as a Director honestly and act with reasonable care and diligence in the performance and discharge of functions and duties; 21.4.2 not make improper use of information acquired by virtue of his or her position as a Director to gain, directly or indirectly, an advantage for himself or herself or for another person or to cause detriment to the LGA; 21.4.3 not make improper use of his or her position as a Director to gain, directly or indirectly, an advantage for himself or herself or for another person or to cause detriment to the LGA; and 21.4.4 not act in any matter where the Director has a conflict of interest (provided that an interest shared in common with all or a substantial proportion of the Directors will not be an interest giving rise to a conflict of interest). 22. Functions of the Board of Directors The functions of the Board of Directors include: 22.1 appointing a Chief Executive and superintending his or her performance; 22.2 holding the Chief Executive accountable for the performance of the LGA Office; 22.3 advocating for the LGA, the Members and the local government community; 22.4 superintending the activities of the LGA;

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22.5 determining matters which may be placed on the agenda of a General Meeting; and 22.6 undertaking such other functions as may be provided for, or envisioned by, this Constitution. 23. Duties of the Board of Directors The Board of Directors must ensure that: 23.1 the LGA acts in accordance with applicable laws and this Constitution; 23.2 the LGA acts ethically and with integrity, respecting diversity and striving for gender balance participation in all activities; 23.3 the activities of the LGA are conducted efficiently and effectively and that the assets of the LGA are properly managed and maintained; 23.4 subject to any overriding fiduciary or other duty to maintain confidentiality, the affairs of the LGA are undertaken in an open and transparent manner; and 23.5 the LGA performs to its business plan and achieves or betters the financial outcomes projected in its budget. 24. Powers of the Board of Directors 24.1 The Board of Directors may exercise the powers of the LGA. 24.2 The Board of Directors also has power to: 24.2.1 establish committees consisting of any person with relevant experience, skill or expertise for any purpose and determine the terms of reference for such committees; and 24.2.2 recommend to the Members at a General Meeting to amend the provisions of the Constitution. 24.3 The Board of Directors must establish and maintain: 24.3.1 an audit committee comprising at least 3 persons with appropriate qualifications and experience required to discharge the functions of an audit committee as determined by the Board of Directors; and 24.3.2 an advisory group comprised of at least 8 persons each being a chief executive officer of a Member. 24.4 The Board of Directors, the Audit Committee, the CEO Advisory Group and any committee shall cause minutes to be kept of all its proceedings and actions. 24.5 The Board of Directors will report the activities of Board of Directors, the Audit Committee, the CEO Advisory Group and any committee to Members at each General Meeting.

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25. Meetings of the Board of Directors 25.1 Meetings of the Board of Directors shall be held at least once in each 2 month period at such times and places as shall be determined by the President or by any 3 members of the Board of Directors. 25.2 The Chief Executive shall, at least 7 days before the date fixed for the meeting of the Board of Directors, inform each Director of the date, time and place of the meeting and the proposed business to be conducted at the meeting. 25.3 The President may in cases of urgency direct that a meeting of the Board of Directors be held at any time without the need to give 7 days’ notice. If this occurs, the Chief Executive shall if practicable give notice in writing to each Director of the date, time and place of the meeting and the proposed business to be conducted at the meeting. 25.4 No business shall be transacted at a meeting of the Board of Directors unless half of the Directors, plus 1 Director are present (providing that at least 1 Director from each of SAROC and GAROC is in attendance) in person or connected using technology which enables all members to communicate with each other as if they were all present in a single place. 25.5 All questions arising at a meeting of the Board of Directors shall be decided by a simple majority vote of the Directors present and voting on each question. 25.6 The Chair of the meeting has a deliberative vote and, if there are equal numbers of votes on any question, a casting vote. 26. Circulating resolutions 26.1 Notwithstanding clause 25, the Board of Directors may pass a resolution without a meeting in accordance with this clause 26. 26.2 Each member must receive notice of the proposed resolution in identical terms, including by electronic means. 26.3 A resolution will remain open for adoption for a period of 5 days (or such longer period as is provided in the notice of the resolution). 26.4 A Director may vote for a resolution received under clause 26.2 by responding to the notice confirming that they are in favour of the resolution (Instrument of Resolution). 26.5 The resolution is passed when the Chief Executive receives by hand delivery, post, email or fax Instruments of Resolution executed by a majority of Directors entitled to vote on the resolution within the time period provided for in clause 26.3. 27. Delegations 27.1 Subject to this clause 27, the Board of Directors may by resolution delegate any of its powers, functions or duties to any member or members of the Board

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of Directors, to a committee established by the Board of Directors or to the Chief Executive, excepting that a delegation to certify the audited financial statements in accordance with the Constitution must only be given jointly to the President and Chief Executive. 27.2 Where a person is acting in the position of either President or Chief Executive in accordance with this Constitution, that person may exercise powers delegated under this clause to the President or Chief Executive (as relevant). 27.3 The Board of Directors may not delegate the power to: 27.3.1 determine annual subscriptions, special purpose levies or service charges for services provided to Members; 27.3.2 determine a membership application or to determine the continuing membership status of a Member; 27.3.3 borrow money or to obtain other forms of financial accommodation; 27.3.4 adopt or revise a strategic management plan of the LGA; 27.3.5 adopt or revise an annual business plan or budget of the LGA; 27.3.6 pay determine the remuneration of, or the reimbursement of expenses to, members of the Board of Directors; or 27.3.7 make an application or recommendation, or report or give notice, to the Governor or a Minister where provided for by statute. 27.4 A delegation: 27.4.1 is subject to conditions and limitations stated in the resolution; 27.4.2 if made to the Chief Executive, authorises the sub-delegation by the Chief Executive in writing of the delegated power or function to any person unless the resolution directs otherwise; 27.4.3 is revocable by resolution of the Board of Directors; and 27.4.4 does not prevent the Board of Directors from exercising the delegated power. 27.5 The Board of Directors must cause a separate record to be kept of all delegations under this clause. 27.6 The Chief Executive must ensure that sub-delegations are reported to the Board of Directors at least every 3 months. 27.7 At least once in every financial year, the Board of Directors must review the delegations and sub-delegations for the time being in force under this clause. 27.8 The record of delegations made under this clause must be placed on the LGA’s public website. 28. Nominations for the Office of President 28.1 The office of President shall be elected by Members biennially.

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28.2 In the year in which a new President is to be elected, and at least 3 months before the Annual General Meeting, the Chief Executive shall write to all Members calling for nominations for the position of President. 28.3 Every Member is entitled to nominate an eligible person to the office of President. 28.4 To be eligible for nomination as a candidate for the position of President, a person must be a Council Member. 28.5 To be eligible for the position of President, a person must also be a current member of SAROC or GAROC who has undertaken that role for a period of not less than 1 year. 28.6 The eligibility for office of President shall rotate each term between a person who is a Council Member of a Member within Regional Groupings of Members in SAROC and a Council Member of a Member within Regional Groupings of Members in GAROC. 28.7 A nomination of a person for the office of President shall be by resolution of a Member and must be received by the Chief Executive not later than 5 pm on the day specified for the closure of nominations. A nomination must be signed by the candidate indicating his or her willingness to stand for election and be in the form determined by the Chief Executive. 28.8 If no nomination is received for the office of President under clause 28.7, then the Chief Executive shall call for additional nominations from and by the Delegates at the Annual General Meeting and will conduct an election at the meeting. 29. Election for office of President 29.1 The Chief Executive shall be the returning officer for any election for the office of President. 29.2 After the Close of Nominations, the Chief Executive will notify all Members of the candidates for the office of President. 29.3 If only 1 person is nominated for President by the Close of Nominations, the Chief Executive shall declare such person duly elected. 29.4 If the number of persons nominated for the office of President by the Close of Nominations exceeds 1 person then an election must be held in accordance with this clause. 29.5 In the event of an election being required, the Chief Executive shall conduct the election as follows: 29.5.1 at least six weeks before the Annual General Meeting the Chief Executive shall deliver ballot papers to each Member; 29.5.2 the ballot papers shall: (a) list the candidates for election; (b) specify the day of closure of the election; and

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(c) be accompanied by an envelope marked "Ballot Paper" and a second envelope marked "Returning Officer"; 29.5.3 each Member shall determine by resolution the candidate it wishes elected; 29.5.4 the Delegate of a Member or in the Delegate's absence, the chair of the meeting for that Member shall mark the ballot paper with an "X" next to the candidate that the Member wishes elected and seal the ballot paper in the envelope marked "Ballot Paper" inside the envelope marked "Returning Officer". Before sealing the second envelope the Delegate must indicate the Member's name on the inside flap of the envelope. The envelope may then be sealed and delivered to the Returning Officer; 29.5.5 on receipt of the envelopes the Chief Executive must: (a) open the outer envelope addressed to the "Returning Officer" and record the name of the Member which appears on the inside flap of the envelope on the roll of Member's eligible to vote; and (b) place the envelope marked "Ballot Paper" unopened into the ballot box; 29.5.6 the Chief Executive shall nominate the date, time and place for the counting of votes and shall invite each candidate and a person nominated as the candidate’s scrutineer to be present; 29.5.7 at the counting of the votes the Chief Executive shall produce unopened envelopes marked "Ballot Paper" and if satisfied that all votes are valid, count the number of votes received by each candidate; 29.5.8 the candidate with the most votes shall be deemed elected and the Chief Executive shall declare the candidate elected at the Annual General Meeting; and 29.5.9 in the case of candidates receiving the same number of votes, the Chief Executive shall draw lots at the counting of the votes and the lot drawn will be the candidate elected. 29.6 The Chief Executive may, in his or her discretion, appoint a deputy returning officer and delegate any of his or her powers, functions or duties to that person who shall act accordingly. 30. Term of Office of Directors 30.1 The President shall take office after the Annual General Meeting of the year in which elected and shall hold office for 2 years or until any vacancy in that office occurs. 30.2 When a new President is elected the person retiring from the Office of President shall hold office as Immediate Past President until his or her successor as President is entitled to assume the office of Immediate Past President.

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30.3 The term of office of the SAROC and GAROC chairpersons operates for the term of their respective appointments as chairperson. 30.4 The term of office of the six persons elected to the Board of Directors by SAROC (3 persons) and GAROC (3 persons) shall commence after the Annual General Meeting of the year in which the person is elected and shall be for 2 years or until a vacancy in that office occurs for any such person. 30.5 Persons elected under clause 30.4 are eligible for re-election for subsequent terms. 30.6 Any person appointed to the office of Immediate Past President shall hold office until the retiring President becomes entitled to hold that office under this Constitution. 31. Casual Vacancy 31.1 A casual vacancy shall occur in the offices of President or another Director if the person appointed to that office: 31.1.1 dies; 31.1.2 resigns from the office or from SAROC or GAROC (as relevant); 31.1.3 is dismissed by resolution of the Board of Directors from the Board of Directors or SAROC or GAROC (as relevant) for Misconduct; or 31.1.4 ceases to be a Council Member, or an administrator is appointed to administer the affairs of the Member for which the Director is the Council Member. 31.2 If there is a Casual Vacancy in the office of President, the Board of Directors shall appoint a member of the Board of Directors to act in the office of President for the balance of the President’s term, provided that the position may only be filled by a Director who is a member of the same Regional Organisation of Councils as the President. 31.3 If there is a Casual Vacancy in the Board of Directors (other than for the roles of President or Immediate Past President) then the position will be filled for the balance of the Director’s term by a person appointed as a replacement by SAROC or GAROC (as relevant to the Director the subject of the Casual Vacancy) taking into account the considerations in clause 21.2.4. 31.4 If a Casual Vacancy arises in the office of Immediate Past President then the vacant position on the Board of Directors will be filled by either SAROC or GAROC as determined by reference to whether the Member on which the Immediate Past President served was a member of a Regional Grouping of Members represented by SAROC or GAROC. SAROC or GAROC (as relevant) will elect the person taking into account the considerations in clause 21.2.4 and determining that the person is of such seniority and experience that his or her contribution will be valuable to the Board of Directors and the LGA.

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32. Leave of absence 32.1 A Director may be granted a leave of absence by resolution of the Board of Directors. 32.2 Where a leave of absence is granted to the President, a Director will be selected by the Board of Directors to act in the office of President for the duration of the absence, provided that the position may only be filled by a Director who is a member of the same Regional Organisation of Councils as the President. 32.3 Where a leave of absence is granted to a Director (other than the President) or a Director is appointed to act as the President under clause 32.2, an acting Director will be appointed by SAROC or GAROC (as relevant to the Director the subject of the leave of absence) to serve in place of that Director for the duration of the absence. 33. Appointment of a Chief Executive 33.1 The Board of Directors shall appoint a Chief Executive who shall be responsible to the Board of Directors for: 33.1.1 the execution of the Board’s decisions, 33.1.2 appointing and overseeing the LGA Office on the basis of sound principles of management; 33.1.3 the discharge of duties stated in the Chief Executive’s contract of employment; 33.1.4 keeping full and accurate accounts of all monies received and expended on behalf of the LGA; 33.1.5 attending to all correspondence and receiving, giving receipt for, banking and making disbursements of LGA funds; 33.1.6 carrying out the lawful instructions given by the Board of Directors or the Members by resolution passed in General Meeting; 33.1.7 having custody of any books, journals, records or documents belonging to the LGA; 33.1.8 having custody of the seal of the LGA which may not be affixed to any document unless it is affixed in the presence of and attested by 2 members of the Board of Directors; 33.1.9 submitting a duly audited statement of income and expenditure for the previous year ending the 30th day of June to the Annual General Meeting; and 33.1.10 submitting a balance sheet showing the current assets and liabilities of the LGA to the Annual General Meeting. 33.2 The performance, remuneration and terms and conditions of the Chief Executive's appointment shall be reviewed annually by the Board of Directors.

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33.3 If the Chief Executive is on leave, incapacitated or otherwise unable to fulfil his or her role then a person nominated by the Chief Executive shall act in that capacity for the period of the Chief Executive’s absence. However, the Board of Directors will appoint an acting Chief Executive if the Chief Executive is unable to determine this appointment. 34. Audit 34.1 The Board of Directors shall appoint an auditor annually. 34.2 A person must not be appointed as the Auditor for a period of more than 5 years. 34.3 Prior to each Annual General Meeting, the Auditor shall audit the income and expenditure account and balance sheet for the year ending 30th June and shall if required report its findings to the Annual General Meeting. 34.4 If required the Auditor shall report to the Annual General Meeting regarding the audit. V. Miscellaneous 35. Dispute resolution 35.1 A dispute between Members or between a Member and the LGA in respect of a matter under this Constitution will be subject to the process set out in this clause 35. 35.2 A Member may notify another Member or the LGA of a dispute in respect of a matter under this Constitution in writing setting out the details of dispute and a proposal for settling the dispute. The parties relevant to the dispute will meet in good faith to discuss the notified dispute and its resolution within 10 days of receiving a notification under this clause 35.2. 35.3 If the dispute is unable to be resolved through discussions under clause 35.2 within 20 days (or such longer period as is agreed to by the parties to the dispute), then any party to the dispute may refer the matter to mediation by notifying the other parties to the dispute in writing. 35.4 Where a matter has been referred to mediation, a mediator will be selected by agreement of the parties or, if the parties are unable to agree, by the Resolution Institute. A mediator appointed under this clause will conduct the mediation in accordance with the Mediation Rules of the Resolution Institute within 10 days of being appointed (or such longer period as is agreed by the parties to the dispute). 35.5 The costs of the mediator will be shared equally by the parties to the dispute. Each party to a dispute will bear its own costs of participating in the mediation.

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36. Administration 36.1 Subject to clause 36.2, an administrator appointed to administer the affairs of the Member may exercise the rights and satisfy the obligations of the administered Member under this Constitution. 36.2 An administrator is ineligible to be a member of the Board of Directors, SAROC or GAROC. 37. Curing of irregularities 37.1 An act done by a Director is effective even if his or her appointment, or the continuance of his or her appointment, is invalid. 37.2 A proceeding under this Constitution is not invalidated because of any procedural irregularity unless a Court of competent jurisdiction is of the opinion that the irregularity has caused or may cause substantial injustice that cannot be remedied by any order of the Court, and by order declares the proceeding to be invalid. 37.3 In this clause, a reference to a “procedural irregularity” includes a reference to: 37.3.1 a defect, irregularity or deficiency of notice or time; 37.3.2 the accidental omission to give notice of any meeting under this Constitution or the non-receipt by any person of notice of the meeting; 37.3.3 the absence of a quorum at any meeting under this Constitution; or 37.3.4 a vote cast at a General Meeting by or for a person under this Constitution not entitled to vote at the meeting or on the matter, or not entitled to vote to the extent or in the way they voted. VI. Transitional provisions 38. Interpretation 38.1 Transitional arrangements associated with this Constitution are set out in this Part VI. 38.2 In Part VI: “Adoption Date” means the date on which both of the following criteria have been satisfied (regardless of the order in which the criteria are satisfied): (a) this Constitution has been adopted by the Members; and (b) the Minister responsible for the Local Government Act 1999 has approved the revocation of the Previous Constitution. “Effective Time” means immediately after the Annual General Meeting held following the Adoption Date.

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“LGA Board” means the governing body of the LGA formed under Part 13 of the Previous Constitution. “Previous Constitution” means the The Constitution (effective 6 December 2015). “Transition Period” means the time period between the Adoption Date and the Effective Time. 38.3 In the event of an inconsistency between Part VI of this Constitution and another provision of this Constitution, Part VI will to the extent of the inconsistency prevail. 39. Membership of the LGA 39.1 A Council which is a member of the LGA in accordance with the Previous Constitution as at the Effective Time will be deemed to be a Member under the terms of this Constitution. 39.2 Any liabilities owing by a Council to the LGA prior to the Effective Time will continue notwithstanding the adoption of this Constitution. 40. President The President of the LGA holding office immediately prior to the Effective Time will become the Immediate Past President under this Constitution at the Effective Time if so eligible. 41. SAROC and GAROC 41.1 Terms of reference for SAROC and GAROC adopted by the LGA Board during the Transition Period will continue in operation after the Effective Time as the terms of reference for the purpose of clause 19.4 of this Constitution. 41.2 As at the Effective DateTime: 41.2.1 the chairs of SAROC and GAROC appointed during the Transition Period; and 41.2.2 Directors elected by SAROC and GAROC during the Transition Period, are validly appointed to the Board of Directors. 41.3 As at the Effective Time: 41.3.1 the members of SAROC and members of GAROC will be deemed to be validly appointed for the purposes of clause 19.6; and 41.2.341.3.2 their respective terms of office will be deemed to commence at the Effective Time and will expire at the Annual General Meeting held 2 years after the Effective Time or when a Casual Vacancy arises.

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42. Resolutions Resolutions passed at a General Meeting or by the LGA Board under the Previous Constitution remain valid after the Effective Time. 43. Delegations 43.1 Delegations granted under clause 86 of the Previous Constitution will continue in operation after the Effective Time as if the delegation was validly granted under clause 27 of this Constitution. 43.2 For the purpose of giving effect to clause 43.1, clause 27.3 will not operate to invalidate a delegation granted validly under the Previous Constitution, provided that this clause 43.2 will cease to operate on the 30 June next following the end of the Transition Period. 44. Audit Committee 44.1 The initial Audit Committee for the purposes of clause 24.3.1 will be the audit committee in existence as at the Effective Time. 44.2 Each member of the Audit Committee referred to in clause 44.1 will serve out the balance of his or her term of office. 45. Auditor An auditor appointed under clause 54 of the Previous Constitution will continue to hold that appointment after the Effective Time, until such time as the Board of Directors replaces the auditor in accordance with clause 34 of this Constitution.

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LGA GAROC Terms of Reference

October 2018[insert date]

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Local Government Association of South Australia GAROC Terms of Reference Adopted by the LGA Board on 13 September 2018[insert date] and Members at the AGM held 26 October 2018[insert date]

1. Establishment In accordance with clause 19 of the Local Government Association of South Australia Constitution and Rules (adopted April 13, 2018) (Constitution) there are 2 regional organisations of Members: the South Australian Regional Organisation of Councils (SAROC) and the Greater Adelaide Regional Organisation of Councils (GAROC). 2. Terms of Reference 2.1. These Terms of Reference set out the functions to be discharged by GAROC. 2.2. The operation of the Terms of Reference may be altered by the Board of Directors either generally or in respect of specific circumstances by resolution with the exception of cClauses 4.2, 4.3 and 4.4. A resolution for the purposes of this clause 2.2 will be reported to the chairperson of GAROC within 24 hours of the meeting of the Board of Directors at which the resolution was passed. 2.3. These Terms of Reference will be presented to the Members at a General Meeting for ratification annually (or more frequently as determined by the Board).

2.4. Clauses 4.2, 4.3 or 4.4 of this Terms of Reference may be altered only: 2.4.1. By resolution passed at a General Meeting of which at least 30 days’ notice has been given to Members; and 2.4.2. With approval of the Minister. 2.5. The term: GAROC Region means the combined local government area of each Member listed in the Schedule.

GAROC Regional Grouping means all of the Members of the Regional Groupings of Members as identified in the Schedule.

2.5.2.6. A capitalised term not defined in this document has the meaning provided for the term in the Constitution. 3. Status GAROC is a committee of the LGA and is responsible to the Board of Directors for the discharge of its functions. 4. GAROC 4.1. Role The role of GAROC is regional advocacy, policy initiation and review, leadership, engagement and capacity building in the GAROC Rregion(s).

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4.2. Membership 4.2.1. The Each GAROC Regional Grouping of Members listed in the schedule to these Terms of Reference will elect in accordance with clause 4.3 and 4.4 from the Members of the GAROC Regional Grouping of Members, eight (28) Council Members of Members in the GAROC Regional Grouping of Members to as members of GAROC provided that each person elected is from a different Member. 4.2.2. In addition to the members of GAROC elected in accordance with clause 4.2.1, the Lord Mayor of the City of Adelaide will be a standing member of GAROC. 4.3. Nominations for election to GAROC 4.3.1. The members of GAROC will be elected biennially. 4.3.2. In the year in which GAROC members will be elected, and at least 3 months before the Annual General Meeting, the Chief Executive shall write to all Members of the GAROC Regional Grouping as listed in the schedule calling for nominations for the membership of GAROC. 4.3.3. Each Member of the GAROC Regional Grouping may nominate a candidate for membership of GAROC, provided that: (a) a person nominated as a member of GAROC must be a representative of a member on the relevant Regional Grouping of Members; and

(a)(b) oOnly a Council Member can be nominated to GAROC. 4.3.3.4.3.4. A nomination of a person as a member of GAROC must be by resolution of the Member received by the Chief Executive not later than 5 pm on the day specified for the closure of nominations (Close of Nominations). A nomination must be signed by the candidate indicating his or her willingness to stand for election and be in the form determined by the Chief Executive.

4.4. Election to GAROC 4.4.1. The Chief Executive shall be the returning officer for any election of members to GAROC. 4.4.2. After the Close of Nominations, the Chief Executive will notify Members of the each GAROC Regional Grouping of Members of the candidates for membership of GAROC nominated byin the Regional Grouping of Members. 4.4.3. If the only nominations received from a Regional Grouping of Members by the Close of Nominations match the membership positions described in clause 4.2.1, then the Chief Executive will declare those persons duly elected to those membership positions. 4.4.4. If the number of persons nominated by the Close of Nominations by the a Regional Grouping of Members exceeds the number of membership positions described in clause 4.2.1, then an election for the purpose of clause 4.2.1 must be held in accordance with this clause.

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4.4.5. In the event of an election being required, the Chief Executive shall conduct the election as follows: (a) at least six weeks before the Annual General Meeting, the Chief Executive shall deliver ballot papers to each Member of the Regional Grouping of Members; (b) the ballot papers shall: (i) list the candidate or candidates for election;

(ii) specify the day of closure of the election; (iii) be accompanied by an envelope marked "Ballot Paper" and a second envelope marked "Returning Officer"; (c) each Member shall determine by resolution the candidate or candidates (as relevant) it wishes to elect; (d) the chair of the meeting for that Member shall mark the ballot paper with an "X" next to the candidate or candidates (as relevant) that the Member wishes elected and seal the ballot paper in the envelope marked "Ballot Paper" inside the envelope marked "Returning Officer". Before sealing the second envelope the chair must indicate the Member's name on the inside flap of the envelope. The envelope may then be sealed and delivered to the Returning Officer; (e) on receipt of the envelopes the Chief Executive must: (i) open the outer envelope addressed to the "Returning Officer" and record the name of the Member which appears on the inside flap of the envelope on the roll of Member's eligible to vote; and (ii) place the envelope marked "Ballot Paper" unopened into the ballot box; (f) the Chief Executive shall nominate the date, time and place for the counting of votes and shall invite each candidate and a person nominated as the candidate’s scrutineer to be present; (g) at the counting of the votes the Chief Executive shall produce unopened envelopes marked "Ballot Paper" and if satisfied that all votes are valid, count the number of votes received by each candidate; (h) in respect of an election for the purposes of clause 4.2.1, the 28 candidates from a Regional Grouping of Members with the most votes shall be deemed elected in respect of that Regional Grouping of Members and the Chief Executive shall declare the candidates elected at the Annual General Meeting; and (i) in the case of candidates for membership positions described in clause 4.2.1 from a Regional Grouping of Members receiving the same number of votes, the Chief Executive shall draw lots at the counting of the votes to determine which candidate is elected.

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4.4.6. The Chief Executive may, in his or her discretion, appoint a deputy returning officer and delegate any of his or her powers, functions or duties to that person who shall act accordingly. 4.4.6.4.4.7. The Chief Executive may, in his or her discretion, delegate any of his or her powers, functions or duties to an Executive Officer of a Regional Grouping of Members who shall act accordingly for the conduct of elections for the purpose of clause 4.2.1 in respect of the Regional Grouping of Members relevant to that Executive Officer. 4.5. Term of office The term of office for members of GAROC shall commence after the Annual General Meeting of the year in which the member is elected. Each member of GAROC will serve for a period of 2 years or until a circumstance causing a casual vacancy as described in clause 4.7.2 occurs. 4.6. Duties 4.6.1. Each member of GAROC must: (a) undertake his or her role as a GAROC member honestly and act with reasonable care and diligence in the performance and discharge of functions and duties; (b) not make improper use of information acquired by virtue of his or her position as a GAROC member to gain, directly or indirectly, an advantage for himself or herself or for another person or to cause detriment to the LGA; (c) not make improper use of his or her position as a GAROC member to gain, directly or indirectly, an advantage for himself or herself or for another person or to cause detriment to the LGA; and (d) not act in any matter where the GAROC member has a conflict of interest (provided that an interest shared in common with all or a substantial proportion of the members of GAROC will not be an interest giving rise to a conflict of interest). 4.7. Absences and casual vacancies

4.7.1. A leave of absence may be granted to a member of GAROC by resolution of GAROC. A replacement member of GAROC will be appointed for the period of the leave of absence by resolution of the majority of Members comprising the GAROC Regional Grouping of Members relevant to the person the subject of the leave of absence. 4.7.2. A casual vacancy will occur in the office of a member of GAROC if the member of GAROC:

(a) dies; (b) resigns from GAROC; (c) is dismissed by resolution of the Board of Directors from GAROC for Misconduct;

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(d) ceases to be a Council Member; (e) the Member for which the member of GAROC is a Council Member is no longer a member of the Local Government Association; or (f) an administrator is appointed to administer the affairs of the Member for which the member of GAROC is a Council Member. 4.7.3. If there is a casual vacancy in the membership of GAROC, then the GAROC Regional Grouping of Members relevant to the GAROC member the subject of the casual vacancy will appoint by resolution of the majority of Members comprising the GAROC Regional Grouping of Members another Council Member to serve as a member of GAROC for the balance of the membership term. 5. Responsibilities 5.1. Board of Directors 5.1.1. The role of the Board of Directors is to oversee corporate governance of the LGA and provide strategic direction and leadership. 5.1.2. The duties of the Board of Directors are to ensure that: (a) the LGA acts in accordance with applicable laws and this the Constitution; (b) the LGA acts ethically and with integrity, respecting diversity and striving for gender balance participation in all activities; (c) the activities of the LGA are conducted efficiently and effectively and that the assets of the LGA are properly managed and maintained; (d) subject to any overriding fiduciary or other duty to maintain confidentiality, the affairs of the LGA are undertaken in an open and transparent manner; and (e) the LGA performs to its business plan and achieves or betters the financial outcomes projected in its budget. 5.1.3. The Board of Directors may from time to time refer matters to GAROC for consideration.

5.1.4. The Board of Directors will receive, consider and respond to any report and recommendations provided to the Board of Directors by GAROC. 5.1.5. The Board of Directors will periodically review the performance of GAROC. 5.2. GAROC 5.2.1. GAROC will fulfil its functions under these Terms of Reference in a timely, objective and professional manner consistent with the ‘LGA Strategic Management Framework’. 5.2.2. GAROC may, through the Chief Executive and at the LGA’s expenses, seek external legal, financial or other advice on matters within its functions or concerning these Terms of Reference.

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5.3. Chief Executive 5.3.1. The Chief Executive will make available to GAROC information of the LGA which is relevant to the functions of GAROC. 5.3.2. The Chief Executive will ensure that administrative support and other resources are made available to GAROC as included in the GAROC approved annual business plan and budget to enable GAROC to discharge its obligations under these Terms of Reference. 5.3.3. Resources made available to GAROC will include resourcing by the LGA Office or external resources considered appropriate by the Chief Executive acting in consultation with GAROC. 6. Functions of GAROC 6.1. LGA Object 6.1.1. The object of the LGA is to achieve public value through the promotion and advancement of the interests of local government by: (a) advocating to achieve greater influence for local government in matters affecting councils and communities; (b) assisting member councils to build capacity and increase sustainability through integrated and coordinated local government; and (c) advancing local government through best practice and continuous improvement. 6.1.2. GAROC will assist in the achievement of the LGA’s object by: (a) supporting the activities of the LGA at a regional level; (b) promoting communication between Members and between Members and the LGA; (c) advocating in respect of matters which affect the GAROC Regional Grouping;

(d) encouraging engagement of Members within the GAROC Regional Grouping with GAROC and the LGA; and (e) participating in policy development and implementation. 6.2. Consideration and referral of Member items of business 6.2.1. Any Member of the GAROC Regional Grouping may raise an item of business for the consideration of the Board of Directors or a General Meeting with GAROC. The item of business must be clearly described in writing, including an indication as to whether the impact of the item is confined to the Member or has broader implications for the local government sector. 6.2.2. GAROC will consider each item of business raised with GAROC by a Member.

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6.2.3. A Member may be invited by GAROC to address a meeting of GAROC in respect of the proposed item of business. 6.2.4. Where considered appropriate by GAROC on the basis of the nature, scope and impact or potential impact of the item on the local government sector, GAROC will refer the item to either the Board of Directors or a General Meeting. 6.2.5. GAROC will inform the Member which has raised the item of business as to whether or not the item will be referred to the Board of Directors or a General Meeting. 6.2.6. Where an item of business is not referred to the Board of Directors or a General Meeting, GAROC may provide assistance or guidance to the Member in respect of progressing the matter. 6.3. Proposals for policy development 6.3.1. GAROC may develop proposals for policy positions for consideration at a General Meeting either in response to an issue raised by a Member within the GAROC Regional Grouping or independently. 6.3.2. A policy position developed by GAROC will be referred to the Board of Directors for consideration and determination as to whether or not the position should be put for consideration and adoption to a General Meeting. 6.4. Election to Board of Directors

6.4.1. GAROC will elect 3 members of GAROC (each of which must be a Council Member with relevant business and governance experience) to the Board of Directors. 6.4.2. In addition to Directors elected under clause 6.4.1, the chairperson of GAROC will be a Director. 6.4.3. The term of office as a Director of the 3 persons elected to the Board of Directors by GAROC and the chairperson of GAROC will commence after the Annual General Meeting of the year in which the person is elected and shall be for 2 years or until a casual vacancy in that office occurs. 6.4.4. Persons elected under clause 6.4.1 are eligible for re-election for subsequent terms. 6.5. Strategic and annual business planning 6.5.1. GAROC will develop, in consultation with the Mmembers within of the GAROC Regional Grouping, a 4 year strategic plan for regional advocacy, policy initiation and review, leadership, engagement and capacity building in the GAROC Rregion. The strategic plan will be reviewed and updated annually by GAROC by June each year. 6.5.2. GAROC will develop, in consultation with the Mmembers within the GAROC Regional Group, an annual business plan for the next financial year by June each year.

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6.5.3. The strategic plan and annual business plan for the next financial year will be presented to the Board of Directors for approval by June each year. 6.6. Other functions GAROC will undertake any other functions:

6.6.1. of GAROC set out in the Constitution; and 6.6.2. delegated by the Board of Directors to GAROC. 7. Budget 7.1.1. GAROC will by June each year develop and adopt a budget to cover anticipated expenses of activities under the strategic plan and annual business plan during the next financial year. After adoption by GAROC, the budget will be provided to the Board of Directors for consideration and approval. 7.1.2. GAROC will provide a financial report to the Board of Directors no later than September providing a true and correct record of the expenditure of GAROC against the annual budget. 7.1.3. The chairperson of GAROC will meet with the Audit Committee of the LGA or the LGA’s external auditor on request to discuss the GAROC financial report. 8. Committees GAROC may establish committees consisting of any person with relevant experience, skill or expertise for any purpose and determine the terms of reference for such committees. 9. Meetings of GAROC 9.1. Resolution of the Board of Directors Requirements under this clause 9 may be altered, supplemented or replaced by resolution of the Board of Directors. 9.2. Frequency of meetings and venue 9.2.1. GAROC will meet at least once in each 2 month period at such times and places as shall be determined by the Chief Executive. 9.2.2. Any member of GAROC or the Board of Directors may convene additional meetings of GAROC. 9.2.3. Notice of a meeting of GAROC will be provided in writing to members of GAROC by the Chief Executive no less than 7 days prior to the meeting providing the date, time and place of the meeting and the proposed business to be conducted at the meeting. 9.3. Chairperson

9.3.1. The chairperson of GAROC will be a Council Member appointed by GAROC. 9.3.2. The chairperson will be the official spokesperson for GAROC.

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9.3.3. If the chairperson of GAROC is absent from a meeting of GAROC then the members attending the GAROC meeting will appoint a chairperson for the purposes of that meeting. 9.4. Decision making 9.4.1. All questions arising at a meeting of GAROC shall be decided by a simple majority vote of the members of GAROC present and voting on each question. 9.4.2. The Chair of the meeting has a deliberative vote and, if there are equal numbers of votes on any question, a casting vote. 9.5. Meeting procedure

The meeting procedures determined by the Board of Directors from time to time will apply to meetings of GAROC. 9.6. Attendance 9.6.1. Meetings of GAROC will be closed to the public. 9.6.2. GAROC may invite any person to attend its meetings. 9.7. Minutes

9.7.1. Minutes will be kept of all GAROC meetings including a record of the actions of GAROC. 9.7.2. Within 48 hours of a GAROC meeting, the chairperson will review and confirm the draft minutes. The draft minutes will then be circulated to GAROC members for comment and if necessary amendment before being certified as correct by the chairperson. 9.8. Quorum The quorum for a meeting of GAROC is one half of the members of GAROC, plus 1 member of GAROC (provided that at least 1 member elected by each GAROC Regional Grouping of Members must be present except for a GAROC Regional Grouping of Members with no representation on GAROC). 9.9. Performance assessment

GAROC will assess its performance against:

9.9.1. the strategic plan and annual business plan each quarter; and

9.9.2. these Terms of Reference annually.

9.10. Reporting

9.10.1. A Director elected by GAROC will provide a verbal report to the Board of Directors on key matters being considered by GAROC at each Board of Director’s meeting at which the minutes of GAROC are to be considered by the Board of Directors.

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9.10.2. Any matter relevant to regional advocacy, policy initiation and review, leadership, engagement and capacity building in the regionGAROC Region(s) considered to be of significance to the corporate governance, strategic direction and leadership of the LGA will be reported by GAROC to the Board as soon as practicable after GAROC has considered the matter.

9.10.3. GAROC will provide an annual report to the Board of Directors by September each year summarising:

(a) the discharge of GAROC’s responsibilities and functions under these Terms of Reference and against the strategic plan and annual business plan;

(b) the activities of GAROC during the financial year;

(c) items of business referred to the Board of Directors or a General Meeting during the financial year; and

(d) items being considered by GAROC which have not been reported to the Board of Directors and the intended actions in respect of those matters.

10. Access to information

10.1.1. GAROC is entitled, acting though the Chief Executive, to access any information or discuss matters with staff of the LGA Office.

10.1.2. A copy of the agenda for a GAROC meeting, reports to be considered by GAROC and minutes of GAROC meetings certified under clause 9.7.2 will be available to all Directors.

10.1.3. Subject to confidentiality requirements as determined by the Board of Directors or GAROC, a copy of the GAROC agenda, reports and minutes certified under clause 9.7.2 will be published on the LGA website for review by Members.

11. Administration

11.1. Subject to clause 11.2, an administrator appointed to administer the affairs of the Member may exercise the rights and satisfy the obligations of the administered Member under these Terms of Reference.

11.2. An administrator is ineligible to be a member of GAROC.

12. Transitional provisions

12.1. Interpretation

12.1.1. Transitional arrangements associated with these Terms of Reference are set out in this clause 12.

12.1.2. In this clause 12:

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“Commencement Date” means the date on which both of the following criteria have been satisfied (regardless of the order in which they are satisfied):

(a) these Terms of Reference have been adopted by resolution passed at a General Meeting of which at least 30 days’ notice has been given to Members; and

(b) the Minister has approved the amendments to clauses 4.2, 4.3 and 4.4.

“Previous Terms of Reference” means the terms of reference for GAROC in operation immediately prior to the Commencement Date.

“Transitional Period” means the period between the Commencement Date and the Annual General Meeting in 2020.

12.1.3. The term of office of each member of GAROC appointed prior to the Commencement Date will expire at the Annual General Meeting in 2020 or when a casual vacancy arises under clause 4.7.2.

12.1.4. If a leave of absence is granted under clause 4.7.1 in respect of a member of GAROC during the Transitional Period, a replacement member of GAROC will be appointed for the period of the leave of absence by resolution of the majority of Members comprising the Regional Grouping of Members specified in the schedule to the Previous Terms of Reference.

12.1.5. If a casual vacancy arises under clause 4.7.2 in respect of a member of GAROC during the Transitional Period, another Council Member will be appointed to serve as a member of GAROC for the balance of the membership term by resolution of the majority of Members comprising the Regional Grouping of Members specified in the schedule to the Previous Terms of Reference.

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Schedule: List of Regional Groupings of Members within the GAROC Regional Grouping

GAROC Regional Grouping of Members Members Metropolitan RegionNorth Adelaide Adelaide Hills Burnside Campbelltown Charles Sturt Gawler Playford Salisbury Tea Tree Gully Holdfast Bay Marion Mitcham Norwood Payneham & St Peters Onkaparinga Playford Port Adelaide Enfield Prospect Salisbury Tea Tree Gully Unley Walkerville West Torrens

West Charles Sturt Holdfast Bay Port Adelaide Enfield West Torrens South Marion Mitcham Onkaparinga

East Adelaide Hills Burnside Campbelltown Norwood Payneham & St Peters Prospect Unley Walkerville

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LGA SAROC Terms of Reference

October 2018[insert date]

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Local Government Association of South Australia SAROC Terms of Reference Adopted by the LGA Board on 13 September 2018[insert date] and Members at the AGM held 26 October 2018[insert date]

1. Establishment In accordance with clause 19 of the Local Government Association of South Australia Constitution and Rules (adopted April 13, 2018) (Constitution) there are 2 regional organisations of Members: the South Australian Regional Organisation of Councils (SAROC) and the Greater Adelaide Regional Organisation of Councils (GAROC). 2. Terms of Reference 2.1. These Terms of Reference set out the functions to be discharged by SAROC. 2.2. The operation of the Terms of Reference may be altered by the Board of Directors either generally or in respect of specific circumstances by resolution with the exception of cClauses 4.2, 4.3 and 4.4. A resolution for the purposes of this clause 2.2 will be reported to the chairperson of SAROC within 24 hours of the meeting of the Board of Directors at which the resolution was passed. 2.3. These Terms of Reference will be presented to the Members at a General Meeting for ratification annually (or more frequently as determined by the Board). 2.4. Clauses 4.2, 4.3 or 4.4 of this Terms of Reference may be altered only: 2.4.1. By resolution passed at a General Meeting of which at least 30 days’ notice has been given to Members; and 2.4.2. With approval of the Minister. 2.5. The term: SAROC Region means the combined local government area of each Member listed in the Schedule. SAROC Regional Grouping means all of the Members of the Regional Groupings of Members as identified in the Schedule. 2.5.2.6. A capitalised term not defined in this document has the meaning provided for the term in the Constitution. 3. Status SAROC is a committee of the LGA and is responsible to the Board of Directors for the discharge of its functions. 4. SAROC 4.1. Role The role of SAROC is regional advocacy, policy initiation and review, leadership, engagement and capacity building in the SAROC rRegions.

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4.2. Membership Each SAROC Regional Grouping of Members listed in the schedule to these Terms of Reference will elect in accordance with clauses 4.3 and 4.4 from the Members of the SAROC Regional Grouping of Members, 2 Council Members of Members in the SAROC Regional Grouping toas members of SAROC provided that each person elected is from a different Member. 4.3. Nominations for election to SAROC 4.3.1. The members of SAROC will be elected biennially. 4.3.2. In the year in which SAROC members will be elected, and at least 3 months before the Annual General Meeting, the Chief Executive shall write to all Members of the SAROC regionsRegional Grouping, as listed in the schedule, calling for nominations for the membership of SAROC. 4.3.1.1. Each Member of the SAROC Regional Grouping may nominate a candidate for membership of SAROC, provided that: 4.3.3. 4.3.1.2.4.3.3.1. Aa person nominateding as a member of SAROC must be a representative of a Mmember on the relevant SAROC Regional Grouping of Members; and. 4.3.1.3.4.3.3.2. oOnly a Council Member can be nominated to SAROC. 4.3.2.4.3.4. A nomination of a person as a member of SAROC must be received by the Chief Executive Officer not later than 5 pm on the day specified for the closure of nominations (Close of Nominations). A nomination must be signed by the candidate indicating his or her willingness to stand for election and be in the form determined by the Chief Executive. 4.4. Election to SAROC 4.4.1. The Chief Executive shall be the returning officer for any election of members to SAROC. 4.4.2. After the Close of Nominations, the Chief Executive will notify Members of each SAROC Regional Grouping of Members of the candidates for membership of SAROC nominated by the Regional Grouping of Members. 4.4.3. If the only nominations received from a Regional Grouping of Members by the Close of Nominations match the membership positions described in clause 44.2 then the Chief Executive will declare those persons duly elected to those membership positions. 4.4.4. If the number of persons nominated by the Close of Nominations by the a Regional Grouping of Members exceeds the number of membership positions described in clause 4.24.2.1, then an election for the purpose of clause 4.2 4.2.1 must be held in accordance with this clause. 4.4.5. In the event of an election being required, the SAROC Rregional Ggroupings in consultation with the Chief Executive shall conduct an election.

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4.4.6. The Chief Executive, in consultation with the SAROC Rregional Ggroupings shall nominate the date, time and place for the counting of votes and shall invite each candidate and a person nominated as the candidate’s scrutineer to be present: (a) at the counting of the votes the Chief Executive shall produce unopened envelopes marked "Ballot Paper" and if satisfied that all votes are valid, count the number of votes received by each candidate; (b) in respect of an election for the purposes of clause 4.24.2.1, the 2 candidates from a Regional Grouping of Members with the most votes shall be deemed elected and the Chief Executive shall declare the candidates elected at the Annual General Meeting; and. (c) in the case of candidates for membership positions described in clause 4.24.2.1 receiving the same number of votes, the Chief Executive shall draw lots at the counting of the votes to determine which candidate is elected. 4.4.7. The Chief Executive may, in his or her discretion, appoint a deputy returning officer and delegate any of his or her powers, functions or duties to that person who shall act accordingly. 4.4.8. The Chief Executive may, in his or her discretion, delegate any of his or her powers, functions or duties to regional LGAan Executive Officer of a Regional Grouping of Memberss who shall act accordingly for the conduct of elections for the purpose of clause 4.2 in respect of the Regional Grouping of Members relevant to that Executive Officer. their respective regional LGA SAROC elections. 4.5. Term of office The term of office for members of SAROC shall commence after the Annual General Meeting of the year in which the member is elected. Each member of SAROC will serve for a period of 2 years or until a circumstance causing a casual vacancy as described in clause 4.8.1 occurs. 4.6. Duties 4.6.1. Each member of SAROC must: (a) undertake his or her role as a SAROC member honestly and act with reasonable care and diligence in the performance and discharge of functions and duties; (b) not make improper use of information acquired by virtue of his or her position as a SAROC member to gain, directly or indirectly, an advantage for himself or herself or for another person or to cause detriment to the LGA; (c) not make improper use of his or her position as a SAROC member to gain, directly or indirectly, an advantage for himself or herself or for another person or to cause detriment to the LGA; and

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(d) not act in any matter where the SAROC member has a conflict of interest (provided that an interest shared in common with all or a substantial proportion of the members of SAROC will not be an interest giving rise to a conflict of interest). 4.7. Absences and casual vacancies 4.7.1. A leave of absence may be granted to a member of SAROC by resolution of SAROC. A replacement member of SAROC will be appointed for the period of the leave of absence by resolution of the majority of Members comprising the SAROC Regional Grouping of Members relevant to the person the subject of the leave of absence. 4.7.2. A casual vacancy will occur in the office of a member of SAROC if the member of SAROC: (a) dies; (b) resigns from SAROC; (c) is dismissed by resolution of the Board of Directors from SAROC for Misconduct; (d) ceases to be a Council Member; or (e) an administrator is appointed to administer the affairs of the Member for which the member of SAROC is a Council Member. 4.7.3. If there is a casual vacancy in the membership of SAROC then the SAROC Regional Grouping of Members relevant to the SAROC member the subject of the casual vacancy will appoint by resolution of the majority of Members comprising the SAROC Regional Grouping of Members another Council Member to serve as a member of SAROC for the balance of the membership term. 5. Responsibilities 5.1. Board of Directors 5.1.1. The role of the Board of Directors is to oversee corporate governance of the LGA and provide strategic direction and leadership. 5.1.2. The duties of the Board of Directors are to ensure that: (a) the LGA acts in accordance with applicable laws and this the Constitution; (b) the LGA acts ethically and with integrity, respecting diversity and striving for gender balance participation in all activities; (c) the activities of the LGA are conducted efficiently and effectively and that the assets of the LGA are properly managed and maintained; (d) subject to any overriding fiduciary or other duty to maintain confidentiality, the affairs of the LGA are undertaken in an open and transparent manner; and

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(e) the LGA performs to its business plan and achieves or betters the financial outcomes projected in its budget. 5.1.3. The Board of Directors may from time to time refer matters to SAROC for consideration. 5.1.4. The Board of Directors will receive, consider and respond to any report and recommendations provided to the Board of Directors by SAROC. 5.1.5. The Board of Directors will periodically review the performance of SAROC. 5.2. SAROC 5.2.1. SAROC will fulfil its functions under these Terms of Reference in a timely, objective and professional manner consistent with the ‘LGA Strategic Management Framework’. 5.2.2. SAROC may, through the Chief Executive and at the LGA’s expenses, seek external legal, financial or other advice on matters within its functions or concerning these Terms of Reference. 5.3. Chief Executive 5.3.1. The Chief Executive will make available to SAROC information of the LGA which is relevant to the functions of SAROC. 5.3.2. The Chief Executive will ensure that administrative support and other resources are made available to SAROC as included in the SAROC approved annual business plan and budget to enable SAROC to discharge its obligations under these Terms of Reference. 5.3.3. Resources made available to SAROC will include resourcing by the LGA Office or external resources considered appropriate by the Chief Executive acting in consultation with SAROC. 6. Functions of SAROC 6.1. LGA Object 6.1.1. The object of the LGA is to achieve public value through the promotion and advancement of the interests of local government by: (a) advocating to achieve greater influence for local government in matters affecting councils and communities; (b) assisting member councils to build capacity and increase sustainability through integrated and coordinated local government; and (c) advancing local government through best practice and continuous improvement. 6.1.2. SAROC will assist in the achievement of the LGA’s object by: (a) supporting the activities of the LGA at a regional level; (b) promoting communication between Members and between Members and the LGA;

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(c) advocating in respect of matters which affect the SAROC Regional Grouping; (d) encouraging engagement of Members within the SAROC Regional Grouping with SAROC and the LGA; and (e) participating in policy development and implementation. 6.2. Consideration and referral of Member items of business 6.2.1. Any Member of the SAROC Regional Grouping may raise an item of business for the consideration of the Board of Directors or a General Meeting with SAROC. The item of business must be clearly described in writing, including an indication as to whether the impact of the item is confined to the Member or has broader implications for the local government sector. 6.2.2. SAROC will consider each item of business raised with SAROC by a Member. 6.2.3. A Member may be invited by SAROC to address a meeting of SAROC in respect of the proposed item of business. 6.2.4. Where considered appropriate by SAROC on the basis of the nature, scope and impact or potential impact of the item on the local government sector, SAROC will refer the item to either the Board of Directors or a General Meeting. 6.2.5. SAROC will inform the Member which has raised the item of business as to whether or not the item will be referred to the Board of Directors or a General Meeting. 6.2.6. Where an item of business is not referred to the Board of Directors or a General Meeting, SAROC may provide assistance or guidance to the Member in respect of progressing the matter. 6.3. Proposals for policy development 6.3.1. SAROC may develop proposals for policy positions for consideration at a General Meeting either in response to an issue raised by a Member within the SAROC Regional Grouping or independently. 6.3.2. A policy position developed by SAROC will be referred to the Board of Directors for consideration and determination as to whether or not the position should be put for consideration and adoption to a General Meeting. 6.4. Election to Board of Directors 6.4.1. SAROC will elect 3 members of SAROC (each of which must be a Council Member with relevant business and governance experience) to the Board of Directors. 6.4.2. In addition to Directors elected under clause 6.4.1, the chairperson of SAROC will be a Director. 6.4.3. The term of office as a Director of the 3 persons elected to the Board of Directors by SAROC and the chairperson of SAROC will commence after the Annual General Meeting of the year in which the person is elected and shall be for 2 years or until a casual vacancy in that office occurs.

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6.4.4. Persons elected under clause 6.4.1 are eligible for re-election for subsequent terms. 6.5. Strategic and annual business planning 6.5.1. SAROC will develop, in consultation with the Mmembers within of the SAROC Regional Grouping, a 4 year strategic plan for regional advocacy, policy initiation and review, leadership, engagement and capacity building in the SAROC Rregion. The strategic plan will be reviewed and updated annually by SAROC by June each year. 6.5.2. SAROC will develop, in consultation with the Mmembers within the SAROC Regional Grouping, an annual business plan for the next financial year by June each year. 6.5.3. The strategic plan and annual business plan for the next financial year will be presented to the Board of Directors for approval by June each year. 6.6. Other functions SAROC will undertake any other functions: 6.6.1. of SAROC set out in the Constitution; and 6.6.2. delegated by the Board of Directors to SAROC. 7. Budget 7.1 SAROC will by June each year develop and adopt a budget to cover anticipated expenses of activities under the strategic plan and annual business plan during the next financial year. After adoption by SAROC, the budget will be provided to the Board of Directors for consideration and approval. 7.2 SAROC will provide a financial report to the Board of Directors no later than September providing a true and correct record of the expenditure of SAROC against the annual budget. 7.3 The chairperson of SAROC will meet with the Audit Committee of the LGA or the LGA’s external auditor on request to discuss the SAROC financial report. 8. Committees SAROC may establish committees consisting of any person with relevant experience, skill or expertise for any purpose and determine the terms of reference for such committees. 9. Meetings of SAROC 9.1. Resolution of the Board of Directors Requirements under this clause 9 may be altered, supplemented or replaced by resolution of the Board of Directors. 9.2. Frequency of meetings and venue 9.2.1. SAROC will meet at least once in each 2 month period at such times and places as shall be determined by the Chief Executive.

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9.2.2. Any member of SAROC or the Board of Directors may convene additional meetings of SAROC. 9.2.3. Notice of a meeting of SAROC will be provided in writing to members of SAROC by the Chief Executive no less than 7 days prior to the meeting providing the date, time and place of the meeting and the proposed business to be conducted at the meeting. 9.3. Chairperson 9.3.1. The chairperson of SAROC will be a Council Member appointed by SAROC. 9.3.2. The chairperson will be the official spokesperson for SAROC. 9.3.3. If the chairperson of SAROC is absent from a meeting of SAROC then the members attending the SAROC meeting will appoint a chairperson for the purposes of that meeting. 9.4. Decision making 9.4.1. All questions arising at a meeting of SAROC shall be decided by a simple majority vote of the members of SAROC present and voting on each question. 9.4.2. The Chair of the meeting has a deliberative vote and, if there are equal numbers of votes on any question, a casting vote. 9.5. Meeting procedure The meeting procedures determined by the Board of Directors from time to time will apply to meetings of SAROC. 9.6. Attendance 9.6.1. Meetings of SAROC will be closed to the public. 9.6.2. SAROC may invite any person to attend its meetings. 9.7. Minutes 9.7.1. Minutes will be kept of all SAROC meetings including a record of the actions of SAROC. 9.7.2. Within 48 hours of a SAROC meeting, the chairperson will review and confirm the draft minutes. The draft minutes will then be circulated to SAROC members for comment and if necessary amendment before being certified as correct by the chairperson. 9.8. Quorum The quorum for a meeting of SAROC is one half of the members of SAROC, plus 1 member of SAROC (provided that at least 1 member elected by each SAROC Regional Grouping of Members must be present except for a SAROC Regional Grouping of Members with no representation on SAROC). 9.9. Performance assessment SAROC will assess its performance against: 9.9.1. the strategic plan and annual business plan each quarter; and

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9.9.2. these Terms of Reference annually. 9.10. Reporting 9.10.1. A Director elected by SAROC will provide a verbal report to the Board of Directors on key matters being considered by SAROC at each Board of Director’s meeting at which the minutes of SAROC are to be considered by the Board of Directors. 9.10.2. Any matter relevant to regional advocacy, policy initiation and review, leadership, engagement and capacity building in the SAROC Rregions considered to be of significance to the corporate governance, strategic direction and leadership of the LGA will be reported by SAROC to the Board as soon as practicable after SAROC has considered the matter. 9.10.3. SAROC will provide an annual report to the Board of Directors by September each year summarising: (a) the discharge of SAROC’s responsibilities and functions under these Terms of Reference and against the strategic plan and annual business plan; (b) the activities of SAROC during the financial year; (c) items of business referred to the Board of Directors or a General Meeting during the financial year; and (d) items being considered by SAROC which have not been reported to the Board of Directors and the intended actions in respect of those matters. 10. Access to information 10.1.1. SAROC is entitled, acting though the Chief Executive, to access any information or discuss matters with staff of the LGA Office. 10.1.2. A copy of the agenda for a SAROC meeting, reports to be considered by SAROC and minutes of SAROC meetings certified under clause 9.7.2 will be available to all Directors. 10.1.3. Subject to confidentiality requirements as determined by the Board of Directors or SAROC, a copy of the SAROC agenda, reports and minutes certified under clause 9.7.2. will be published on the LGA website for review by Members. 11. Administration 11.1. Subject to clause 11.2, an administrator appointed to administer the affairs of the Member may exercise the rights and satisfy the obligations of the administered Member under these Terms of Reference. 11.2. An administrator is ineligible to be a member of SAROC.

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Schedule: List of Regional Groupings of Members in the SAROC Regional Grouping

SAROC Regional Grouping of Members Members

Southern & Hills Councils Alexandrina Mount Barker Victor Harbor Yankalilla Kangaroo Island

Legatus Councils Adelaide Plains Barossa Barunga West Clare & Gilbert Valleys Copper Coast Goyder Light Mount Remarkable Northern Areas Orroroo Carrieton Peterborough Wakefield Yorke Peninsula Flinders Ranges

Eyre Peninsula Ceduna Cleve Elliston Franklin Harbor Kimba Streaky Bay Tumby Bay Wudinna Lower Eyre Peninsula Port Lincoln

Limestone Coast Grant Kingston Mount Gambier Naracoorte Lucindale Robe Tatiara Wattle Range

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Murraylands & Riverland Loxton Waikerie Mid Murray Karoonda East Murray Coorong District Southern Mallee Berri Barmera Renmark Paringa Murray Bridge

Spencer Gulf Cities Port Augusta Port Pirie Whyalla

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LGA Meeting Procedures

October 2018[insert date]

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Local Government Association of South Australia Meeting Procedures Adopted by the LGA Board on 13 September 2018[insert date] and by Members at the AGM held 26 October 2018[insert date] 1. Meeting Procedures 1.1. As contemplated by the Local Government Association of South Australia Constitution and Rules (adopted April 13, 2018) (Constitution) the Board of Directors of the LGA has resolved to adopt the meeting procedures set out in this document (Meeting Procedures) to regulate the mode and conduct of proceedings at any General Meeting, and meetings of the Board of Directors, SAROC or GAROC and LGA committees (Meetings). 1.2. These Meeting Procedures may be altered by the Board of Directors either generally or in respect of specific circumstances by resolution. A resolution for the purposes of this clause 1.2 will not take effect until the resolution has been published in an LGA Circular. 1.3. A capitalised term not defined in this document has the meaning provided for the term in the Constitution. 1.4. These Meeting Procedures are ancillary to the Constitution. To the extent of any inconsistency between the Constitution and these procedures, the Constitution will prevail. 1.5. To the extent matters are not dealt with by the Meeting Procedures, Joske’s Law and Procedure atnd Meetings in Australia will be the source of procedural rules. 2. Procedures applicable to all Meetings 2.1. Guiding principles for Meeting procedures 2.1.1. Where there is discretion with respect to the meeting procedures to be adopted at a Meeting, the guiding principles in this clause should be applied. 2.1.2. Meeting procedures should: (a) be fair and contribute to open, transparent and informed decision- making; (b) encourage appropriate participation by persons present at the Meeting; (c) reflect levels of formality appropriate to the nature and scope of the responsibilities exercised at the Meeting; and (d) be sufficiently certain to give Members and other key stakeholders confidence in the deliberation undertaken at the Meeting. 2.2. Meeting commencement 2.2.1. A Meeting must commence at the appointed time for the Meeting, unless a quorum is not present at this time (in which case the Meeting will, subject to clause 2.2.2, commence once a quorum is in attendance). 2.2.2. If no quorum is present at a Meeting within 30 minutes after the time appointed for a Meeting, the chair may adjourn the Meeting to a determined

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date, time and place, provided that the date is no earlier than 7 days after the adjourned Meeting (or in the case of a General Meeting convened to consider a special resolution no earlier than 30 days after the notice of the adjourned Meeting is provided to Members). 2.3. Meeting adjournment 2.3.1. Persons attending a Meeting who are entitled to vote at that Meeting may determine by majority to adjourn the Meeting to a specified place, date and time. 2.3.2. Notice of the adjourned Meeting will be provided to all persons entitled to attend the Meeting. 2.4. Meeting cancellation 2.4.1. A Meeting may be cancelled by the chair if the number of apologies in advance of the date of the Meeting indicates that a quorum will not be present. 2.4.2. Persons entitled to attend the Meeting will be notified of the place, date and time of the rescheduled meeting in accordance with the notice period applying to that Meeting. 2.5. Confidential matters 2.5.1. Where the nature of a matter requires the matter to remain confidential, the matter will be marked ‘Confidential’ in agendas, reports and other papers (Meeting Papers) dealing with the matter by the Chief Executive prior to distribution to Meeting participants. 2.5.2. The Meeting will consider the nature of any matter marked ‘Confidential’ in accordance with clause 2.5.1 and will determine whether or not to pass a resolution that the matter be treated confidentially. 2.5.3. The guiding principle contained in clause 2.1.2(a) and circumstances listed in section 90(3) of the Local Government Act 1999 must be considered for the purpose of determining the confidentiality of a matter under clause 2.5.1 and 2.5.2, however other circumstances may also be taken into account. 2.5.4. Where a resolution is passed for the purposes of clause 2.5.2 requiring that a matter be treated confidentially, the chair of the Meeting may exclude all persons not entitled to participate in the Meeting. The chair may determine that specific persons not entitled to participate in the Meeting may remain at the Meeting, even though a confidential matter is to be discussed. 2.5.5. The confidentialityly of matters must be preserved by all persons having access to the Meeting Papers. This requirement is not intended to prevent discussion within the LGA Office which occurs in order to progress or address confidential matters in the manner determined by the Meeting at which the confidential matters were considered. 2.5.6. A person receiving a Meeting Paper marked ‘Confidential’ must not provide that paper to any other person or discuss or disseminate information

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contained in that paper, unless the Meeting has resolved that the matter not be treated confidentially. 3. Use of technology A Meeting may occur from two or more venues through the use of technology provided which enables that the persons at each venue entitled to attend the Meeting have a reasonable opportunity to participate in the Mmeeting. 4. Minutes 4.1. Obligation to take and maintain minutes 4.1.1. Minutes will be taken of all proceedings and actions arising from a Meeting. Minutes will be provided to the LGA for inclusion in the minute books and on the LGA’s web site within 5 days of the Meeting to which the minutes relate. 4.1.2. Minute books will be kept by the LGA at its principal office either in hardcopy or electronic form. 5. Procedures applicable to General Meetings 5.1. Items of business 5.1.1. Any Member may propose an item of business for a General Meeting to SAROC, GAROC or the Board of Directors. 5.1.2. Only SAROC, GAROC or the Board of Directors may determine to place an item of business on the agenda for a General Meeting. 5.2. Motions 5.2.1. Where an item of business has been put on the agenda of a General Meeting under clause 5.1.2, the Member which raised the item of business with SAROC, GAROC or the Board of Directors may put a motion with respect to the item of business at the General Meeting. 5.2.2. A motion will lapse if it is not seconded at the appropriate time. 5.2.3. A Member moving or seconding a motion will speak once to the motion at the time of moving or seconding the motion, excepting that a Member may provide an explanation of a material part of his or her speech later in a debate on the motion. 5.2.4. A member may only speak once to a motion except: — (a) to provide an explanation in regard to a material part of his or her speech, but not so as to introduce any new matter; or (b) with leave of the meeting; or (c) as the mover in reply. 5.2.5. A Member must not speak for more than 35 minutes without the leave of the General Meeting. 5.2.6. Subject to clause 5.2.10, aA member who has spoken to a motion may not at a later stage of the debate move or second an amendment to the motion.

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5.2.7. A Member may propose an amendment to a motion before a General Meeting, provided that, subject to clause 5.2.10, only 2 amendments to the motion may be proposed. 5.2.8. An amendment will lapse if it is not seconded at the appropriate time. 5.2.9. A person proposing an amendment may speak to the amendment and, if he or she does so, will be taken to have spoken on the motion to which the amendment has been proposed. 5.2.10. The mover of a motion or amendment may, with the consent of the seconder, request leave of the General Meeting to vary, alter or withdraw a motion or amendment. 5.2.11. Each resolution considered at a General Meeting will be decided by the majority value of the votes of the Delegates present at the Meeting and voting on the resolution. 5.3. Addresses by Members 5.3.1. A Member must not speak for more than 35 minutes without the leave of the General Meeting. 5.3.2. A Member may, with the leave of the General Meeting, raise a matter of urgency. 5.4. Manner of voting 5.4.1. The Chief Executive will read out a motion before a vote is taken. 5.4.2.5.4.1. Voting may occur electronically. 5.4.3.5.4.2. Each Delegate must cast a vote on each motion put to the Meeting. 5.5. Suspension of Meeting Procedures 5.5.1. The chair of the General Meeting may suspend the operation of some or all of these Meeting Procedures for a period of time to facilitate informal discussions, with the approval of the General Meeting. 5.5.2. The chair or the majority of the Meeting may determine that the period of suspension should end. 5.6. Points of order 5.6.1. The chair of the General Meeting may call to order a Member who is in breach of these Meeting Procedures. 5.6.2. A Member may bring to the attention of the chair an alleged breach of these Meeting Procedures. 5.6.3. A point of order takes precedence over all other business until the point of order had been determined. 5.6.4. The chair of the General Meeting will rule on the point of order. However, a motion may be put to the General Meeting that the chair’s ruling not stand. The chair may make a statement regarding the ruling prior to the motion being put.

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5.7. Interruptions 5.7.1. A Member must not act in an improper or disorderly manner at any General Meeting. 5.7.2. A Member must not interrupt another Member who is speaking, except to object to the words used by the speaking Member or to raise a point of order. 5.7.3. Where a Member is alleged to have contravened clause 5.7.2: (a) that Member must be allowed to make a personal explanation before leaving the General Meeting while the matter is considered by the Meeting; and (b) the General Meeting must consider whether a contravention of clause 5.7.2 has occurred and, if so, whether the Member should be suspended for a part or the remainder of the Meeting. 5.7.4. A personal explanation of a Member may not be debated. 6. Procedures applicable to Meetings of the Board of Directors 6.1. Oath of elected office 6.1.1. At the first Board of Directors Meeting to be attended by a Director, the Director will provide the oath of office, declaring that the Director will, to the best of his or her ability: (a) undertake their Board role conscientiously and in accordance with the Constitution and Rules of the LGA; (b) consider the interests of the LGA and the Councils the LGA represents; (c) ensure they are informed of the views and interests of Councils; (d) actively contribute to the Board; and (e) support the decisions and actions of the Board. 6.1.2. A failure to provide the oath of office does not remove the person from the Board. 7. Provisions applicable to Meetings of SAROC/GAROC 7.1.1. Unless provided for in the SAROC/GAROC Terms of Reference, these Meeting procedures will also apply to SAROC/GAROC. 7.1.2. The LGA Board can create separate meeting procedures for GAROC and SAROC 8. Provisions applicable to LGA committees 8.1.1. Unless provided for in a LGA Committee’s Terms of Reference, these Meeting procedures will also apply to LGA Committees. 8.1.2. The LGA Board can create separate meeting procedures for LGA Committees.

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6.12 LGA Board and Committee Member Allowances and Expenses

LGA Business From: Andrew Johnson, Executive Director Corporate Governance Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3C Improve LGA governance and operations with a focus on people, finances and our members Meeting Annual General Meeting 31 October 2019 ECM: 681856 Attachment: 83590

Recommendation That the Annual General Meeting adopts LGA policy GP02 Board and Committee Member Allowance and Expenses.

Discussion The LGA Board of Directors adopted GP02 Board and Committee Member Allowance and Expenses Policy (copy attached) at its June 2019 meeting. While the LGA Constitution allows the Board to adopt this policy, the Board resolved to place the policy before the membership of the LGA at the 2019 AGM for endorsement to ensure transparency in the decision-making process. The GP02 Board and Committee Member Allowance and Expenses Policy has undergone a major re-write. It merges the following previous Board policies into one:  Guidelines for Allowances paid to the LGA President, Immediate Past President, Vice Presidents and other Members of the LGA Board.  Reimbursement of Member/Officer Expenses – Boards/Committees.  Reimbursement of LGA Committee Member Expenses – Conferences/Seminars.  Frequent Flyer Points Accrued by LGA Board Members. In addition to merging and modifying the content of the above policies, the major changes that have been made to the GP02 Board and Committee Member Allowance and Expenses Policy includes the provision whereby the LGA will pay for travel and accommodation costs associated with Board Directors as well as SAROC and GAROC members attending their respective meetings. The Policy is placed before the Annual General Meeting for its endorsement.

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GP02 Board and Committee Member Allowances and Expenses

First Issue/Approved October 2004 LGA File Reference ECM 83590 Last Reviewed June 2019 - approved by LGA Board of Directors at the meeting held 20/06/2019 Next Review March 2020 Responsible Officer Director Corporate Services Related Documents Claim for Reimbursement Form (ECM 669180)

1. Purpose This Policy is designed to outline the remuneration, allowances and expenditure reimbursements payable by the LGA to the LGA Board of Directors, SAROC, GAROC and the CEO Advisory Group.

2. Scope This policy is applicable for all remuneration, allowances and expenditure reimbursed / payable to the LGA Board of Directors, SAROC, GAROC and the CEO Advisory Group. This Policy excludes the LGA Audit and Risk Committee and the LGA subsidiaries Boards, which are subject to a separate Policy.

3. Principles The following principles apply to the allowances and expenses paid by the LGA to its President, other Members of the LGA Board of Directors, SAROC, GAROC and the CEO Advisory Group: 1. No-one should be left personally out of pocket as a result of their membership of the LGA Board of Directors, SAROC, GAROC or the CEO Advisory Group. 2. The allowance (where payable) and any expenses paid under this Policy have regard to the allowances that are separately funded to Board/Committee members by their respective councils. 3. The allowances (where payable) are not a ’wage’ and should be used for reimbursement of routine out of pocket expenses associated with LGA business not covered by this policy. 4. No person shall be disadvantaged in their allowance / sitting fee due to their current position in a council and/or their location. 5. The LGA shall pay for all accommodation, reasonable meals and taxi fares when a Board/Committee Member is away on official LGA business. When not accompanied by the Chief Executive Officer (who shall generally be responsible for payment of these expenses), reimbursement of these expenses may be claimed after consultation with the Chief Executive Officer. 6. Where a Board/Committee Member is provided a fully funded vehicle to undertake their council role, no reimbursement for travel expenditure associated with its use of this vehicle will be made by the LGA. 7. The Chief Executive Officer may refer a request for reimbursement of additional expenses to the LGA Board of Directors if, in his/her opinion, the request for reimbursement is not consistent with these guidelines.

4. Policy Statement 4.1 Decision Making and Review Clause 6.10 of the LGA’s Constitution adopted by Members at the 13 April 2018 Ordinary General Meeting and approved by the Minister for Local Government provides that for the purpose of fulfilling the objectives and

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undertaking its functions, the LGA Board of Directors has the power to determine remuneration for Directors or members of committees established under the Constitution. However, it is acknowledged that best practice corporate governance principles developed by the ASX Corporate Governance Council recommend that no individual director or committee member should be involved in deciding their own remuneration. As a result the LGA Board of Directors shall review the quantum of LGA allowances and expenses and all other provisions of this Policy every two years (at the conclusion of the term of current LGA Office Bearers), and shall make recommendations to its Members at the LGA AGM as to what Board and Committee Member allowance and expenses policy should be adopted for the next two years. In the transitionary phase of this policy, this policy will initially be adopted by the LGA Board of Directors, in accordance with Clause 6.10 of the LGA’s Constitution, and then be referred to the next general meeting of members for endorsement.

4.2 Board of Directors The following guiding principles apply when determining the level and payment of allowances and expenses for the LGA Board of Directors: 1. the President’s allowance shall be adjusted to be not less than the average of the allowances for all Council Principal Members (excluding Adelaide City), and shall be increased in line with CPI adjustments for Council Principal Members (if any) which may be made by the Local Government Remuneration Tribunal from time to time. 2. the President’s allowance shall be paid monthly, in arrears. 3. allowances to all other LGA Board Members shall be paid quarterly, in arrears, and shall be increased in line with annual CPI adjustments1. 4. the quantum of allowances shall be determined having regard to: a. the level of work required to fulfil the duties and responsibilities of each office. b. the size, complexity, commercial activities, management of Schemes, activities and advocacy undertaken by the LGA, for and on behalf of member councils. c. the role and responsibilities of Board Members as outlined in the LGA’s Constitution. d. the general governance requirements and other expectations of a Board Director. e. the reasonable level of out of pocket expenses required in respect of each office. f. comparison with allowances / sitting fees paid to similar positions in other relevant organisations. g. other special circumstances considered relevant by the LGA Board of Directors. 5. it is recognised that in many cases a Board member also holds the position of Mayor/Chairperson, and their respective council provides them a vehicle with all associated expenses associated with this vehicle being paid for by their council. 6. in circumstances where a Board member does not have access to a council vehicle clause 5.6 of this policy will apply. 7. the amount of allowance paid to Board members is exclusive of any amount that the LGA is required to pay in respect of that allowance under the Supersaturation Guarantee Levy Act. 8. if required to under legislation or at the request of the Board member, income tax may be deducted from the Board allowance.

1 Allowances to be increased on 12 November of each year in line with annual CPI adjustments. (All groups index for Adelaide percentage change from the September to September quarters) published by the Australian Bureau of Statistics.

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In considering the above factors, the following remuneration structure for LGA Board directors was adopted at the October 2018 Annual General Meeting: Allowance President $47,982 Directors $4,291 (x 9 including the Immediate Past President)

4.3 SAROC, GAROC and CEO Advisory Group Members In setting the allowances and expenses for GAROC, SAROC and CEO Advisory Group members’ consideration is given to the principle set out in section 3 of this Policy. SAROC, GAROC and CEO Advisory Group members:

 Are not entitled to a sitting fee or allowance for their role on these committees.  Are entitled to reasonable travel costs associated with attending their respective GAROC, SAROC and CEO Advisory Group meetings, which are not met by their respective regions and/or councils. Reasonable travel costs include:

o Airfares (See Section 4.5) o Vehicle travel (see section 4.6) o Car parking (See section 4.8)  Are entitled to reasonable accommodation costs associated with attending meetings where it is impractical/unsafe to travel to and from the meeting in the same day.

4.4 Conferences / Seminars Board Director, SAROC and GAROC members may seek reimbursement of expenses incurred in attending approved conferences / seminars that will assist them to carry out their functions or duties for the LGA. The LGA will fund / reimburse the fees, accommodation, reasonable meals and travel costs for attendance at conferences / seminars that have been approved by the Board, SAROC or GAROC. Members attending conferences / seminars will be required to provide a written report to the LGA Board and / or relevant committee sharing the key learnings from their attendance.

4.5 Airfares and accommodation The LGA will only reimburse economy class airfares for Board Director, SAROC, GAROC and CEO Advisory Group members attending approved LGA meetings and activities.

4.6 Travel expenditure Where a council provides a Board Director, SAROC, GAROC and CEO Advisory Group member with a full funded vehicle to undertake their council role, no reimbursement for travel expenditure associated with the use of this vehicle will be made by the LGA. In all other cases, where approval is given for reimbursement of travel the rate of reimbursement for motor vehicle costs will be at a rate equal to the appropriate rate per kilometre prescribed for the purposes of

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calculating deductions for car expenses under section 82KX(1)(a) of the Income Tax Assessment Act 1936 of the Commonwealth.

4.7 Car parking for Board Directors By arrangement with the Adelaide City Council, the LGA will provide electronic swipe cards or other suitable means of entry to car parks located within close proximity of LG House to Board Directors. The terms and conditions of this arrangement will be:

 the cards will be provided only to Board Members and must be returned to the LGA at the conclusion of each Member’s term of office, unless re-elected;  the LGA will pay the costs of the use of these cards by Board Members for parking associated with attendance at meetings of the LGA Board of Directors;  the LGA will also pay the costs of the use of the cards by Board Members for attendance at meetings of other standing committees and working groups, and for other casual meetings at LG House for the purposes of conducting LGA business;  private use of U Park swipe cards is strictly not permitted and will be treated as a breach of the LGA’s code of conduct; and

 where U Park facilities are not available for LGA related business, members are asked to find ticket parking and seek reimbursement for these costs from the LGA.

4.8 Car parking for SAROC, GAROC and CEO Advisory Group Members The LGA will reimburse SAROC, GAROC and CEO Advisory Group members the cost of car parking associated with attending their respective meetings and associated actives in their capacity as members of SAROC, GAROC and CEO Advisory Group.

4.9 Frequent flyer points From time to time, the Director, SAROC, GAROC and CEO Advisory Group member may be required to travel by air to conduct LGA business. As part of these travel arrangements, Members may earn frequent flyer points or other similar rewards to be credited for future air travel. These types of reward schemes allocate the reward to the individual, rather than the organisation they represent. The LGA acknowledges that the Members of the LGA Board/Committees are not fully compensated for their time and commitment for their LGA role, and volunteer significant amounts of their own time to help conduct the business of the LGA. It is appropriate that this contribution be recognised by allowing Members unrestricted use of frequent flyer points or other rewards earnt by them while traveling on the LGA’s behalf. Frequent Flyer points and other incentives or rewards which are earnt by Members of the LGA Board when traveling by air to conduct the business of the LGA, shall be the exclusive property of the Member and may be used by the Member in any way he or she chooses.

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5. Reporting expenditure The Board will be provided with a quarterly report on the allowances and reimbursed expenses paid to each Director, SAROC, GAROC and CEO Advisory Group member during the previous quarter. The LGA’s annual report will also disclose the amount of allowances and reimbursed expenses paid to each Director, SAROC, GAROC and CEO Advisory Group member during the year.

6. Policy review This policy will be reviewed initially in 12 months (March 2020) to determine its effectiveness, and there after every two years, or as required to improve its effectiveness.

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6.13 LGA Audit and Risk Committee - Remuneration

LGA Business From: Andrew Johnson, Executive Director Corporate Governance Key Initiative: K.I 3 Best practice and continuous improvement Strategy: 3C Improve LGA governance and operations with a focus on people, finances and our members Meeting: Annual General Meeting 31 October 2019 ECM: 688545

Recommendation That the Annual General Meeting endorses the LGA Board’s decision that the LGA Audit and Risk Committee remuneration remains unchanged from their current levels for the next 12 months.

Discussion The terms of reference for the LGA’s Audit and Risk Committee provides for an annual review of the remuneration of Committee members. More specifically the terms of reference states the following: 12. Remuneration and Expenses 12.1. Remuneration of independent and Board member representatives on the Audit and Risk Committee will be resolved on an annual basis by the Board, to be ratified by Members at the Annual General Meeting each year. 12.2. Expenses reasonably incurred in carrying out the role of a member of the Audit and Risk Committee will be reimbursed by the LGA. 12.3. The fact and the extent of payment and to who payable will be disclosed in a note to the audited financial statements of that financial year. The LGA Board undertook a compressive review of the remuneration to pay the Board, Committees and subsidiary Boards in September 2018. This involved obtaining an independent assessment of the level of remuneration that should be paid and included comparisons with other similar organisations. The current level of remuneration payable to Audit and Risk Committee members is as follows:  Independent Chair $18,000  Independent Members (x2) $12,000  LGA Board member $8,000 The compulsory superannuation guarantee levy is payable on top of the above committee member fees. The inflation rate (Adelaide CPI) for the year to June 2019 was 1.4%.

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The LGA Board of Directors has considered this matter and are recommending to the Annual General Meeting that the remuneration for Audit and Risk Committee members remains unchanged from their current levels on the basis that a comprehensive independent review was undertaken last year and that inflation is currently at a low level.

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7.1 Crown Lands as Economic Drivers

Recommendation Reports from the SAROC Committee Submitted by: SAROC Approved by: LGA Board of Directors Meeting Annual General Meeting 31 October 2019 ECM: 687124

Recommendation That the Annual General Meeting requests that the LGA write to the Minister for Environment and Water requesting the State Government work in partnership with local government to undertake a comprehensive review of all Crown Lands with the aim of identifying areas of under-utilised Crown Land which could be made available to help stimulate economic development in regional areas.

SAROC Committee’s Comments At its meeting on 19 September 2019 the SAROC Committee resolved to seek approval from the LGA Board of Directors to place this item of business on the agenda for the LGA Annual General Meeting. The LGA Board of Directors has recommended the item of business, recognising that this is of strategic importance and has the potential to benefit all regional councils.

LGA Officer's Comments (Officer: Sean Holden, Senior Policy Adviser) The majority of land in South Australia is privately owned or held under a crown lease or other arrangement. The remaining land is known as unalienated Crown land. Crown land is managed by the South Australian Government under the Crown Land Management Act (2009) (the Act) for the benefit of the community. Crown land does not include national parks or state forests. The Department for Environment and Water’s (DEW) Crown Lands Program is responsible for the administration of Crown land under the Act and in accordance with Premier and Cabinet Circular 114 Government Real Property Management 2019. Councils are often the custodians of dedicated Crown land and may have Crown land included on its Community Land Register as required under the Local Government Act 1999. Council’s may enquire to DEW about purchasing Crown land or identify Crown land within its local government area which may be suitable for release. Crown land can be used by members of the community under different types of tenure, including licences, leases or dedicated to councils or government agencies. Under certain circumstances the community may purchase Crown land. The remaining Crown land is referred to as unalienated Crown land, this means that the ownership of the land has not been transferred from the “Crown” and the land is run by the State on behalf of the Crown. Recent research has confirmed the links between South Australia’s economic performance and demographic profile. South Australia’s comparatively poor economic performance results from a combination of economic conditions and demographic trends. With a few exceptions the greatest population decline in South Australia is in our rural and regional areas, leading to a shortfall in the

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skills, services and infrastructure these communities need to survive and thrive economically and socially.i Regional South Australia faces challenges in sustaining and growing its communities, including the continuing drift of people from the country to the city, decline in traditional industries, and the need to diversify economies. A key barrier to diversification is the availability of land. Economic development is a key consideration of the Department of Environment and Water, which states that it supports economic growth and regional development by unlocking opportunities for investment and innovation through enabling the sustainable use of our natural resources.ii The Liberal Party took to the 2018 State Election an “Opening Up Our Reservoirs” policy which identified specific sites that could be used for sporting, recreational, tourism and economic development opportunities. With support from members, the LGA would ask the State Government to show similar consideration for other under-utilised Crown land and work in partnership with local government to undertake a comprehensive review of all Crown land that could be appropriately used to help stimulate economic activity in regional areas.

Financial and Resource Implications This activity is not currently anticipated in the LGA’s work program but can be delivered within existing LGA resources.

i Local Government Research and Development Scheme (LGR&DS) project “Evidence to inform Local Government Advocacy for a Strategic Population Policy” by the South Australian Centre for Economic Studies (SACES) December 2018. ii Sustaining Our Natural Resources Department of Environment and Water website https://www.environment.sa.gov.au/about-us/our-goals/goal-2-natural-resources

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8.1 Corflute Election Signs (Campbelltown)

Recommendation Reports from the GAROC Committee Submitted by: Campbelltown City Council Approved by: GAROC Committee Meeting Annual General Meeting 31 October 2019 ECM: 688521 Attachment: 681230

Recommendation That the Annual General Meeting requests the LGA to advocate to the State Government for stronger regulation of corflute election signs, ideally with consideration of their complete ban (except for signage at polling booths), or alternatively additional measures to restrict use.

GAROC Committee’s Comments GAROC considered the proposed item of business from Campbelltown City Council at its meeting on 2 September 2019. GAROC amended the motion presented by Campbelltown City Council to request that the LGA direct advocacy efforts at the State Government as it has a greater role in regulating corflutes. GAROC asked that the report presented to the AGM include information on the approaches taken by other Australian jurisdictions. GAROC also asked that the report reinforce that corflutes are now recyclable and some of the environmental concerns could be mitigated through effective recycling.

LGA Officer's Comments (Officer: Alicia Stewart, Director Governance and Legislation) Corflutes are light-weight and weather resistant plastic signs commonly used for temporary signage such as for advertising candidates for federal, state and local government elections. Corflutes are predominantly used as roadside signage and are regulated via State laws either through local government legislation or planning controls. In South Australia, regulation is via the Local Government Act 1999, the Local Nuisance and Litter Control Act 2016 and council by-laws. Of particular relevance to this discussion, section 226 of the Local Government Act 1999 permits the placement of a moveable sign (i.e. corflute) on a road without the permission of council provided it is displayed during a specified window of time preceding an election (thereby overriding regulatory controls used by councils to manage moveable signs at all other times). Despite the permission granted by section 226 of the LG Act, an election sign cannot lawfully be placed on, or affixed to, infrastructure on a road without the permission of the owner of that infrastructure. Currently, SA Power Networks and the Department of Planning, Transport and Infrastructure have provided ‘general approvals’ that permit corflutes to be affixed to their infrastructure (such as stobie poles) subject to the signs meeting strict conditions regarding size and location of the signage. Several issues with corflute signs have been identified during recent federal, state and local government elections, including roadside amenity, roadside safety, potential for damage to roadside infrastructure and the council resourcing required to regulate use.

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Potential Australian constitutional issues In considering a ban or restriction on use of corflute election signs, it is important to acknowledge previous decisions of the High Court of Australia. The High Court of Australia has acknowledged in various decisions that an implied freedom of communication exists under the Australian Constitution in relation to political and government matters. The implied freedom is not an individual right but a limitation on legislative power, meaning a law cannot unreasonably restrict the freedom. The test for the implied freedom comes from Lange v Australian Broadcasting Corporation and can be summarised as: does the law burden the freedom of communication about government or political mattes and is the law reasonably appropriate and adapted to serve a legitimate end? Election advertising falls within the ambit of the implied constitutional freedom and it may be that election signs cannot be banned entirely and can only be managed so any restriction on their use is appropriate. In Australian Capital Television Pty Ltd v Commonwealth, a law was struck down because it provided an absolute ban on political radio and television broadcasting, which was determined to be a disproportionate measure. More tailored limitations on the freedom of political communication have been upheld, such as laws to impose maximum campaign contribution limits. While a law restricting placement of corflute election signs does burden the freedom of political communication to some degree, the preservation of roadside amenity, protection of road safety, and reduction in costs to councils, are arguably all legitimate ends that may justify the restriction. Whether banning or restricting the use of corflute election signs is considered an appropriate restriction on the constitutional freedom is worth testing with the State Government, noting that other jurisdictions impose far greater restrictions on the use of election signs than South Australia. Approaches in other jurisdictions A desktop study of the approaches taken in other Australian jurisdictions has been undertaken by the LGA Secretariat. The Australian Capital Territory permits the display of election signs for a period of six weeks preceding the election date subject to restrictions on location and design. Signs may be either A- frame or a non-metal board mounted to wooden stakes and under no circumstances can election signs be attached or affixed to, or obstruct, roadside property such as stobie poles. New South Wales prohibits the display of posters on or within premises without the consent of the owner or occupier. “Premises” includes any structure or building, so a person cannot attach a poster to a utility pole without the written consent of the owner. During the 2015 NSW State election, the primary electricity infrastructure owner removed consent for the posters to be attached to its infrastructure, effectively resulting in posters not appearing on roadside infrastructure for recent elections. In Victoria, election signs are not permitted on local roads, municipal buildings, reserves or council land, including any structures such as bus shelters and light poles within road reserves. The Victorian road authority, VicRoads, has banned electoral signage on declared arterial road reserves. Councils in Western Australia regulate election signs through individual by-laws, with some councils requiring licensing of signs, prohibition of signs on road reserves, and/or requiring signs to be free standing and not fixed to stobie poles or streetlights. Queensland councils also regulate signs through individual by-laws, with some councils limiting the time period for display of signs, restricting the number of signs permitted per candidate, requiring signs to be free-standing or A-frame (not attached to infrastructure such as stobie poles) , and/or registering the location of each sign with council.

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Recycling of corflute election signs The LGA Secretariat has confirmed with one recycling and management company (YCA Recycling) that plastic election signs are free for disposal at its recycling facility subject to metal rings and zippy ties having been removed. The corflutes go through a recycling process that includes shredding, washing, granulating and pelletizing to a ready-for-moulding format. Further investigation and promotion into recycling opportunities can be undertaken by the LGA Secretariat in the event advocacy for a total ban on corflutes signs is unsuccessful.

Financial and Resource Implications This activity is not currently anticipated in the LGA’s work program but further investigation of this issue and consultation with members can be delivered within existing LGA resources.

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LGA General Meeting – Proposed Item of Business The purpose of this form is to request consideration by SAROC, GAROC or the Board of Directors of an item of business to be included on the agenda of an LGA General Meeting - refer Clause 16.3.1 of the LGA Constitution. Prior to submitting a proposed Item of Business, please refer to the Considering Proposed Items of Business for LGA General Meetings Guidelines. Council Name Campbelltown City Council The body the item is being GAROC referred to

Proposals may only be submitted to the ROC of which council is a member, or to the LGA Board of Directors. Subject of the proposed item of Corflute Election Signs business Proposed motion for the That the Annual / Ordinary General Meeting requests the LGA to General Meeting seek the support of the Australian Local Government Association to lobby the Federal Government to ban all corflute election signs

for Local, State and Federal elections (with the exception of signage at polling booths), subject to support from a majority of South Australian Councils to implement the ban. Supporting information A ban on corflutes is widely supported by our local Community

Provide a summary of the issue(s), and previous Federal Members of Parliament. relevant background information, Some of the reasons a ban is being sought are as follows: description of the impact on the sector and evidence that this is an item of  the corflutes are a distraction to traffic and are often placed strategic importance to local government. illegally which is a problem for Council and requires resourcing to manage which costs ratepayers money  they are environmentally unfriendly as they are made of plastic  they move around in the wind and become unsightly

 there are always problems having them taken down after the election. Below are quotes from our outgoing Federal politicians supporting a ban on corflutes as were printed in The Advertiser on 18 April 2019: Election posters, or ‘corflutes’, should be banned in campaigns to stop annoying voters, wasting resources and distracting from policy discussion, says outgoing Adelaide MP and former Labor minister Kate Ellis. ‘It is a massive amount of resources, the public don’t particularly like them and it’s a huge distraction for the first week of the campaign,’ Ms Ellis said. While he joked that the posters were ‘fun’, Mr Pyne said he wouldn’t be sorry to see the practice go — but until then the parties were locked in an ‘arms race’ to get them up.

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‘If we banned posters, I’d be just as happy as Kate’ (Ellis). Previous advice from the LGA has confirmed that election signs fall within the ambit of candidates’ implied Constitutional rights to freedom of political communication, as determined by the High Court of Australia. This may mean that a complete ban on election signs is unachievable, however there may be opportunities to manage their usage. LGA Policy Manual 1.2.4 Legislation: Local government considers it vital that

Does this item require a change to the federal and state governments adequately collaborate with the LGA Policy Manual (new policy or LGA and councils regarding legislation that affects the sector and amendment to existing policy)? that formal protocols should be developed. The LGA shall continue to lobby governments for introduction of protocols that provide certainty about engagement processes. 4.2.1 Waste Management: Local government recognises its statutory obligation of managing municipal waste and its vital role in waste resource recovery. Councils shall continue to promote improved waste management practices in accordance with the waste hierarchy and work with residents and businesses to further limit the creation of waste. LGA Strategic Plan reference Key Initiative 1 – Leadership & Advocacy Achieving greater influence for local government in matters affecting councils and communities. C - Lead Reform

Council Contact Officer Lyn Barton submitting form [email protected] 8366 9234

Council Meeting minute Item 9.1, 4 June 2019 reference and date of meeting Date submitted to LGA 19 June 2019

Please return Word version of completed form to [email protected]. Refer to LGA Circulars in respect to deadlines for upcoming General Meetings.

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8.2 State of Climate Emergency (Gawler)

Recommendation Reports from the GAROC Committee Submitted by: Town of Gawler Approved by: GAROC Committee Meeting Annual General Meeting 31 October 2019 ECM: 688315 Attachment: 684695

Recommendation That the Annual General Meeting:

1. notes the October 2018 Special Report of the Intergovernmental Panel on Climate Change (IPCC) and the Federal Government’s latest emissions data showing increased carbon emissions; 2. strengthens the LGA’s ‘Managing the Risks of Climate Change’ Policy Statement to acknowledge that climate change poses a serious risk to local communities and ecosystems, and that all levels of government are urged to take action that will help address the effects of climate change in local communities; and 3. continues to lobby the State and Federal Government to prioritise climate change action, in particular advocate for greater State and Federal funding in initiatives that will assist local governments and their communities to mitigate and adapt to the effects of climate change.

GAROC Committee’s Comments GAROC recommended that this item of business progress to the Annual General Meeting on 31 October 2019 with the following clarifications:  That the LGA Secretariat provide specific examples within this report of the impacts of climate change on the roles and responsibilities of local government; and  That the LGA Secretariat highlights that a Climate Emergency Declaration was passed by the Local Government National General Assembly rather than the Australian Local Government Association. The recommendation in this report includes amendments to the proposed item of business that were supported by GAROC to reflect that this is an ongoing area of activity for the LGA and propose a new action to strengthen the LGA’s climate risk policy statement. LGA Officer’s Comments (Officer: Victoria Brown, Senior Policy Advisor) The LGA Policy Manual currently contains a policy statement on ‘Managing the Risks of Climate Change’, which incorporates statements and polices that have been adopted by a majority vote of member councils at General Meetings of the LGA. The existing statement is available in the LGA’s online Policy Manual at http://www.lga.sa.gov.au/page.aspx?u=7502 The proposed motion seeks the strengthening of the LGA’s Policy Statement.

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In support of their motion, the Town of Gawler has provided specific examples of climate risks that have been identified in their council area, some of which are provided below:  The Gawler community experienced significant flooding events in 1983, 1992, 2005 and 2016, which damaged council stormwater infrastructure and assets which are particularly expensive to replace and maintain. In addition, there has been significant erosion of waterways in the North Para, South Para and Gawler Rivers, which may increase the chance of future flooding.  Recent bushfires in the Gawler region (Pinery, Sampson Flat and Eden Valley) demonstrated the unpredictability and ferocity of uncontrollable grass and bushfires, with the Pinery bushfire coming particularly close to the Town of Gawler boundary. There are significant costs and long-term impacts associated with bushfires, and council is putting measures in place to prepare for the risk of an outbreak within council boundaries.  Roads and associated infrastructure are impacted by heatwaves as bitumen is heated and reactivated allowing gravel and aggregate to disperse. Cars also pick up bitumen on their tyres as the surface melts causing significant damage to the road. The rise of temperature in concrete due to progression in heat of hydration causes cracks in concrete, which also degrades footpaths and other concrete structures. This requires greater maintenance and repair of roads and pavements.

 Rising temperatures and altered rainfall patterns are impacting on biodiversity, leading to increased outbreaks of disease and pest invasion and the loss of important native species and significant trees. Maintaining biodiversity and green areas will become more challenging as water becomes scarcer and irrigation costs increase. The motion also requests that the LGA continue to advocate for greater Federal and State Government funding to support local climate change actions. There is some alignment between the proposed motion and two resolutions of the 2019 Ordinary General Meeting (detailed below) calling for greater priority to be given to action on climate change. Motion moved by the Southern and Hills LGA: That the Ordinary General Meeting agrees to enhance Local Government leadership in climate risk management, by: 1. Advocating that the South Australian Government (including the Department of Energy, Transport and Infrastructure and the Department for Environment and Water) establishes and manages a centrally coordinated climate hazard mapping framework to inform decision-making in collaboration with Councils; 2. Advocating to ensure Local Government priorities on climate risk management are considered in the State Government’s new cross-agency Climate Change Strategy; and 3. Investigating opportunities for the LGASA to increase its support to councils to accurately assess the climate risk exposure of Council plans and projects. Motion moved by the District Council of Mount Barker: That the Ordinary General Meeting requests the LGA to investigate opportunities for giving a higher priority to lobbying state and federal governments on climate change, as well as facilitating appropriate responses from member councils, due to the escalating environmental, economic, social and risk related issues faced by the local government sector.

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The LGA Secretariat is proposing to undertake engagement with councils during October and November 2019 to identify their climate change priorities and the support that is needed for local actions. This engagement process will assist in developing recommendations to the LGA Board of Directors about how the LGA can best support member councils in this area within the limited resources available. This engagement process would also be used to seek member feedback on how the LGA’s policy statement on Managing the Risks of Climate Change can be strengthened.

Financial and Resource Implications The LGA allocated significant resources to supporting councils with regional and local climate change action from 2012 – 2016. With funding support from the State Government, the LGA developed a comprehensive suite of strategic, policy and practical resources that have been widely used by councils to develop and implement climate action plans. These resources are available on the LGA’s member website. Allocation has been made within the LGA’s 2019/20 work plan to engage with councils to identify climate change priorities and seek feedback on the LGA’s policy statement and climate change advocacy activities. A decision on LGA resourcing of future climate change activities will need to be made by the LGA Board of Directors, based on the outcomes of consultation with councils and balanced against other sector priorities identified by members.

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LGA General Meeting – Proposed Item of Business The purpose of this form is to request consideration by SAROC, GAROC or the Board of Directors of an item of business to be included on the agenda of an LGA General Meeting - refer Clause 16.3.1 of the LGA Constitution. Prior to submitting a proposed Item of Business, please refer to the Considering Proposed Items of Business for LGA General Meetings Guidelines. Council Name Town of Gawler The body the item is being GAROC referred to

State of Climate Emergency Subject of the proposed item of business That the Annual General Meeting requests that the LGA: Proposed motion for the 1. Note the October 2018 Special Report of the General Meeting Intergovernmental Panel on Climate Change (IPCC) and the Federal Government’s latest emissions data showing increased carbon emissions. 2. Acknowledge that climate change poses a serious risk to local communities and eco-systems, and that all levels of government are urged to take action that will help address the effects of climate change in local communities. 3. Lobby the State and Federal Government to prioritise climate change action, in particular advocate for greater State and Federal funding in initiatives that will assist local governments and their communities to mitigate the effects of climate change. In January 2019, Town of Gawler passed a motion that Supporting information recognised that we are facing a Climate Emergency and that urgent action is required by all levels of government. Climate Emergency is a growing global movement that seeks to elevate climate change action to an emergency response, calling for strong and immediate response and action. The movement elevates business as usual emission reduction actions to a mass mobilisation of people and practices at the local level with a strong focus on advocacy and influence.

The proposed recommendation recognises that climate change poses a serious risk to local communities and eco-systems and in doing so, provides a leadership signal to state and federal governments about the seriousness of climate change. The Australian Local Government Association (ALGA) have now passed a Climate Emergency Declaration motion, as have the Local Government Associations of Victoria and Western Australia. These motions call upon the Australian Government to give higher priority to addressing the Climate Emergency. If the LGA SA is to lobby the State and Federal Government to prioritise climate change action, then better outcomes for the sector may be achieved.

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LGA Policy Manual The item supports the implementation of existing Policy

Statement Number 4 ‘Managing the Risks of Climate Change’. LGA Strategic Plan reference Key Initiative 2. Capacity building and sustainability A. Support local government through training and resources. B. Lead, initiate and promote working together. C. Equip councils for the future. Key Initiative 3. Best practice & continuous improvement A. Lead by example. Council Contact Officer Jack Darzanos submitting form [email protected] (08) 8522 9257 Council Meeting minute RESOLUTION 2019:07:COU279 reference and date of meeting 23 July 2019 Date submitted to LGA 26 July 2019

Please return Word version of completed form to [email protected]. Refer to LGA Circulars in respect to deadlines for upcoming General Meetings.

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8.3 Electric Vehicles (Gawler)

Recommendation Reports from the GAROC Committee Submitted by: Town of Gawler Approved by: GAROC Committee Meeting Annual General Meeting 31 October 2019 ECM: 687683 Attachment: 684691

Recommendation That the Annual General Meeting: 1. requests the LGA to develop a policy for the issues and opportunities associated with predicted increased use of electric vehicles in the Local Government sector and the general community; and 2. to satisfy the item of business, requests that the LGA Policy Manual be amended to include the following draft Policy Statement on Electric Vehicles: Local government recognises that electric vehicles provide for zero emission transport and reduce negative impacts such as toxic emissions, engine noise and greenhouse gas emissions and that councils, because of their roles and responsibilities as road authorities, infrastructure providers, fleet managers and representatives of their local communities, can support and encourage the use of electric vehicles through their planning, policies, investment and procurement activities.

GAROC Committee’s Comments GAROC approved this item of business being placed on the agenda for the LGA Annual General Meeting, recognising the importance of electric vehicles to the development of the low carbon economy and its relevance to all councils. To satisfy the item of business, the GAROC Committee has recommended the draft policy statement on electric vehicles be included in the LGA Policy Manual.

LGA Officer's Comments (Officer: Katherine Russell, Senior Policy Officer) On 7 June 2019, at the request of Department for Energy and Mining (DEM), the LGA released Circular 24.3 to inform councils about the consultation process for the State Government’s consultation to develop an Electric Vehicle Strategy for South Australia (‘the Strategy’). The feedback from this consultation process will inform the LGA’s future advocacy on this issue. The Circular highlighted the importance of the Strategy and the role that councils could play as road authorities, infrastructure providers, fleet managers and representatives of their local communities. The LGA received copies of feedback provided by four (4) individual councils. In response to the Proposed Item of Business from the Town of Gawler, the LGA has developed a draft Policy Statement on Electric Vehicles that can be included in the LGA Policy Manual if endorsed by the AGM.

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While fleet purchasing and provision of electric vehicle infrastructure are actions that can be undertaken by councils, many of the actions relating to the transition of electric vehicles are within the remit of the State Government, such as providing incentives for purchase and use of electric vehicles. Studies in New Zealand, the US and Norway have shown that reducing the cost of electric vehicles was the key consideration for their purchase (City of Adelaide Response to the Electric Vehicle Strategy for South Australia Discussion Paper, July 2019). It is likely that the State Government’s forthcoming strategy will provide direction to local government about actions it is encouraged to take, such as supporting recharging infrastructure in new and existing developments and through its procurement as fleet purchasers. By having a Policy Statement on Electric Vehicles, the LGA will be supported in any future advocacy with the State Government. The proposed policy statement also sends a signal to councils about how they can support and encourage the use of electric vehicles, without being prescriptive about the strategies and actions that councils may choose to implement. The LGA has a good relationship with DEM and will continue to work with the department through the development of the Strategy, particularly as it relates to local government. The LGA will remain involved in this issue to help facilitate DEM consultation with local government and develop a unified local government response to the draft Strategy when it is released.

Financial and Resource Implications This activity has been anticipated in the LGA’s work program and resources are available to progress this work.

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LGA General Meeting – Proposed Item of Business The purpose of this form is to request consideration by SAROC, GAROC or the Board of Directors of an item of business to be included on the agenda of an LGA General Meeting. (refer Clause 16.3.1 of the LGA Constitution https://www.lga.sa.gov.au/page.aspx?u=6840) Council Name The Town of Gawler The body the item is being GAROC referred to

Proposals may only be submitted to the ROC of which council is a member, or to the LGA Board of Directors. Subject of the proposed item of Electric vehicles business Proposed motion for the That the Ordinary General Meeting requests the LGA to develop General Meeting a policy for the issues and opportunities associated with predicted increased use of electric vehicles in the Local

Government sector and the general community. Supporting information There is a growing trend around the world towards the adoption

. of electric vehicles. A number of countries will ban the sales of new motor vehicle internal combustion engines over the next decade, and manufacturers are responding by shifting investment away from internal combustion vehicles. Currently the sales of electric vehicles in Australia is around 0 .3% of total sales, but growing. Bloomberg New Energy Finance predicts there will be a key financial tipping point at around 2025, leading to a rapid uptake, and by 2040 60% of all new car sales being electric. This is now the time to do the planning to prepare Local Government for this change, so it’s orderly, as cost effective as possible and a social, environmental and financial benefit to our communities. The South Australian Government is formulating an Electric Vehicle strategy around electric mobility as an economic driver, the requirements around charging infrastructure, electricity demand, distribution and storage, public transport and the effect on Government revenue. Local Government should take into consideration the SA Government’s strategy when released and develop its own policy and strategy to ensure a smooth transition to electric mobility as it relates to the sector. LGA Policy Manual The item requests that the LGA develops a policy for the issues

and opportunities associated with predicted increased use of electric vehicles in the Local Government sector and the general community.

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It also has relevance to a number of policies areas in the LGA Policy Manual including: 1.1 Promoting the Interests of Local Government 2.2 State and Federal Government Investment 4.4 Managing the Risks of climate Change 5.1 Roads 7.1 Financial Sustainability & Governance. The motion supports the below Key Initiatives and Strategies in LGA Strategic Plan reference the LGA Strategic Plan:

• Key Initiative: 1 Leadership and Advocacy a. Listen to, and represent members. b. Contribute to state-wide and local policy.

• Key Initiative: 2 Capacity Building and sustainability b. Lead, initiate and promote working together. c. Equip councils for the future.

• Key Initiative: 3 Best practice & continuous improvement a. Lead by example. Council Contact Officer Jack Darzanos submitting form [email protected] 8522 9257

Council Meeting minute RESOLUTION 2019:07:COU279 reference and date of meeting Council meeting 23 July 2019 Date submitted to LGA 26 July 2019

Please return Word version of completed form to [email protected]. Refer to LGA Circulars in respect to deadlines for upcoming General Meetings.

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8.4 Fairer Allocation of Open Space Funding (Campbelltown)

Recommendation Reports from the GAROC Committee Submitted by: Campbelltown City Council Approved by: GAROC Committee Meeting Annual General Meeting 31 October 2019 ECM: 688279 Attachment: 684410

Recommendation That the Annual General Meeting requests the LGA write to the Minister for Planning requesting that the Minister, in conjunction with local government, undertake a review of the Planning and Development Fund to investigate a financial model that is more equitable and appropriate for councils that are experiencing higher volumes of infill development, including multi storey development.

GAROC Committee’s Comments GAROC at its meeting on 2 September supported this item of business being placed on the agenda for the AGM recognising its importance to the local government sector, particularly those councils experiencing high levels of infill development. The scope of the motion is to investigate opportunities for further action rather than committing the LGA and councils to a particular outcome. The recommendation in this report includes GAROC’s amendments to the proposed item of business that reflect a requirement for a comprehensive review of the Planning and Development Fund.

LGA Officer's Comments (Officer: Stephen Smith, Director Policy) The item of business submitted by the City of Campbelltown provides a good summary of how the Planning and Development Fund currently operates and the impacts on councils experiencing higher volumes of infill development. While there is no specific LGA Policy related to open space, LGA Policy 6.2.3 relating to infill development establishes that: Local government recognizes that building sustainable densities is key to healthy and vibrant communities, but that current policy on cumulative impacts of infill development should be reviewed and monitored. Local government shall continue to work with state government to identify appropriate targets and controls and shall lobby for a greater role in policy development. In addition, the LGA as part of its 2018 State Election Agenda and its advocacy on the reform of the planning system called on the State Government to better manage infill and in conjunction with local government ‘undertake a comprehensive review of the cumulative impacts of infill

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development, and adjust current policy and funding settings in relation to open space, transport and stormwater to ensure that infill areas are adequately resourced.’ Theme One of GAROC’s Strategic Plan, Built & Natural Environment and Planning, recognises the importance of decisions that support the built and natural environment, and supports well- considered planning processes that achieve good design outcomes and the preservation of character and local heritage. Theme one contains two Objectives: 1. Advocate to the State Government to ensure that South Australia’s planning system reflects leading practice and that the Planning and Design Code and associated resources delivers quality design outcomes that complement and preserve the special qualities of local communities. 2. Influence, inform and advocate for State Government to address policy and legislative barriers that hinder councils from undertaking their roles in maintaining and enhancing the natural and built environment in metropolitan South Australia. The provision of functional and accessible open space through the Planning and Development Fund relates to both of these objectives. In addition to the above, the distribution of funds through the Planning and Development Fund has been identified as an issue of importance for metropolitan councils. In 2014 an LGA Research and Development funded report ‘Open Space Contribution and Funding Analysis Discussion Paper’ identified that: ‘The ability of Councils to effectively ‘fund and deliver’ quality public open space is proving a challenge as Adelaide continues to grow and many parts of South Australia increase in population density. The current formula and fund are largely a legacy of greenfield development, which dominated the majority of urban growth when the system was conceived. A view is that it is outdated, particularly for medium and high-density development, which now accounts for up to 70% of all metropolitan development, as encouraged by the planning framework set down by the 30 Year Plan for Greater Adelaide.’ Furthermore, the Expert Panel that looked at the reform of South Australia’s planning system in their report entitled ‘Our Ideas for Reform’ outlined ideas for reform to the planning system based on research, investigation and discussion. Reform 21 within the Expert Panel’s report (below) related specifically to open space and echoed a number of discussion points within the Research and Development funded discussion paper. ‘Reform 21 - Allow for more effective provision of open space, parks and urban greenery 21.1 Integrate and consolidate funding mechanisms for open space, parks and other public assets, including the existing Planning and Development Fund. 21.2 Recalibrate the open space scheme to provide greater opportunities for regional collaboration and funding. 21.3 Align and coordinate legislation affecting open space and other public assets. 21.4 Review infrastructure legislation to ensure alignment with improved management of the public realm.’ The LGA’s response to the Expert Panels report included the following response in respect of open space: ‘The LGA supports the integration of open space into the planning system.

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We also support a review of the current funding arrangements and have recently concluded consultation with Councils on potential alternative models. We look forward to sharing the outcomes of this work with the Government to inform potential reforms in this area.’ The outcomes of the LGA’s previous work on this topic were provided to the Government at the time and their response to the Expert Panel’s final report expressed a desire to undertake a future review of open space funding models. This issue is of particular relevance to metropolitan councils experiencing high levels of infill development, for example inner and middle ring councils. However, it is important that any review of the Fund and the way that funding is allocated includes a comprehensive analysis of how council areas with low growth and/or minimal subdivision activity (for example regional councils) would be impacted by changes that address the challenges within areas experiencing high volumes of infill development.

Financial and Resource Implications The proposed activity involves the LGA writing the Minister for Planning requesting that the State Government lead a review of the Planning and Development Fund. This activity can be undertaken as part of the LGA’s ongoing advocacy on planning reform. If the State Government is prepared to initiate such as review, the LGA would lead and facilitate the engagement of member councils in this process and the development of a sector-wide position. This activity can be accommodated within the LGA’s work program, but would require other activities to be reprioritised.

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LGA General Meeting – Proposed Item of Business The purpose of this form is to request consideration by SAROC, GAROC or the Board of Directors of an item of business to be included on the agenda of an LGA General Meeting - refer Clause 16.3.1 of the LGA Constitution. Prior to submitting a proposed Item of Business, please refer to the Considering Proposed Items of Business for LGA General Meetings Guidelines. Council Name Campbelltown City Council The body the item is being GAROC referred to

Proposals may only be submitted to the ROC of which council is a member, or to the LGA Board of Directors. Subject of the proposed item of Fairer Allocation of Open Space Funding business Proposed motion for the That the Ordinary General Meeting requests the LGA to advocate General Meeting to the Minister for Planning for a fairer allocation of funding from the subdivision of land under 20 allotments.

Supporting information Open space plays a key role in people’s physical and mental

Provide a summary of the issue(s), health and wellbeing by providing settings for participation in relevant background information, recreation, physical activity, social gatherings and relaxing. The description of the impact on the sector quality, quantity and distribution of open space has implications and evidence that this is an item of on sporting, natural environment, social infrastructure and strategic importance to local government. economic considerations, including through tourism and events. There is a need for different types of open space for use for local, regional and State purposes. To support the provision and development of open space, the State Government delivers an open space grant fund known as the Planning and Development Fund (the Fund). The Fund essentially provides the means for open space and public realm investment across South Australia. The fund operates under the Development Act 1993 and the Planning, Development and Infrastructure Act 2016. Money paid into the Fund is derived from cash payments in lieu of open space for development involving the division of land into less than 20 allotments and for strata and community titles. This money is spent in line with Section 81 of the Development Act and is administered by the Department of Planning, Transport and Infrastructure. Recent years have seen many Councils fall under pressure of increased split block (infill) development and subdivisions of under 20 allotments (typical of the infill development promoted through the 30 Year Plan for Greater Adelaide). The funds generated from subdivisions in these situations (under 20 allotments) is forwarded to the State Government (for contribution to the Fund) and not directly to Councils from where they were generated. Funds are then distributed to South Australian Councils on a competitive basis requiring matching

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funding from Councils, as opposed to investment automatically occurring locally where the pressure on extra facilities was created by contributing subdivisions. Ongoing pressure of infill development and subdivisions of under 20 allotments continue to place Councils under financial pressure through:  Over use of existing facilities (adding cost to maintenance)  Being required to purchase and develop more land for open space (in areas lacking open space), and  Increasing depreciation costs of investments to service these new communities. Some advocacy has occurred with the Minister for Planning in regards to these issues along with previous submissions being made to the Government (through the LGA and Parks and Leisure Australia for example) regarding directing funds generated from subdivisions directly back to the Councils where they were generated without restriction. This would enable upgrade parks and facilities and investment through new land purchases to keep pace with development, responding to pressures placed on existing open space and facilities. Continued advocacy of these issues with the Minister is needed to facilitate a pre-approval process with the Department for land purchases by Councils, so that the opportunities to purchase key properties (as identified in Council strategies) are not lost due to the timing of the annual grant application process. It is noted that land acquired to help address gaps in open space provision is likely to contribute to the provision of open space at the local and neighbourhood levels to service communities in localities currently lacking open space, while at the same time contributing to regional level open space with connections to larger populations. This is particularly relevant in areas experiencing infill development leading to medium and high density housing, a current priority area for funding through the Fund. Another alternative funding option the LGA could advocate for is to work with the Minister and Department to explore alternatives that allow some flow of funds specifically to areas experiencing significant development pressure. This could include releasing funds to these Councils on the condition that they are set aside in a reserve fund for use for land purchases and open space improvements LGA Policy Manual 1.2.2 Funding: Local Government relies on Federal/ State

Does this item require a change to the Government funding to implement a range of economic LGA Policy Manual (new policy or development activities, and shall continue to lobby for increased amendment to existing policy)? collaboration and funding, accompanied by program/ funding agreements which specify objectives and funding schedules and are irrespective of election cycles.

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6.2.3 Infill Development: Local Government recognises that building sustainable densities is key to healthy and vibrant communities, but that current policy on cumulative impacts of infill development should be reviewed and monitored. Local Government shall continue to work with State Government to identify appropriate targets and controls and shall lobby for a greater role in policy development. LGA Strategic Plan reference Key Initiative: 2 Capacity building and sustainability Working with member Councils to build capacity and increase sustainability. An integrated and coordinated local government. E - Assist local government drive economic development. Council Contact Officer Lyn Barton submitting form [email protected] 8366 9234

Council Meeting minute Item 11.2 Council Minutes 4 June 2019 reference and date of meeting Date submitted to LGA 19 July 2019

Please return Word version of completed form to [email protected]. Refer to LGA Circulars in respect to deadlines for upcoming General Meetings.

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8.5 Contributory Items (Gawler)

Recommendation Reports from the GAROC Committee Submitted by: Town of Gawler Approved by: GAROC Committee Meeting Annual General Meeting 31 October 2019 ECM: 687751 Attachments: 684696, 687633

Recommendation That the Annual General Meeting requests the LGA write to the Minister of Planning to: a. reinforce local government’s position that all existing Conservation Zones and Contributory Items should be transitioned into the first generation of the Planning and Design Code; and b. outline the following concerns local government has with the State Government’s proposed approach to transitioning Contributory Items to Local Heritage Places: i. the requirement to use the ’Heritage in Transition – Practitioner Guide’ dated August 2019, which is considered to be flawed, contrary to the Burra Charter, undermines the legislative criteria and will have the effect of greatly limiting the number of places which meet the criteria; ii. the requirement for the Heritage Assessment sheets to be completed by councils prior to the Statement of Intent, which needs to be lodged by November 2019; and iii. the costly heritage assessment, investigations and preparation of the DPA needing to be finalised by July 2020 to provide the State Planning Commission and Minister with a six-month period to consider the DPA.

GAROC Committee’s Comments At its meeting on 2 September, GAROC supported this item of business being placed on the agenda for the AGM. The recommendation in this report includes GAROC’s amendments to the proposed item of business to reinforce local government’s position regarding local heritage and to outline local government concerns with the current process. GAROC also discussed the informal advice that some councils had reportedly received from the Department of Planning Transport and Infrastructure (DPTI) officers that no more than 100 contributory items would be considered for local heritage listing from any one council area. GAROC requested that the LGA seek urgent confirmation from the State Planning Commission (SPC) about this verbal advice. The LGA received written confirmation from the SPC Chair in a letter dated 10 September 2019 that: “neither the Minister for Planning or the State Planning Commission have limited the proposed review of contributory items to any number. Indeed it would conflict with reasonable due process to do so”.

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LGA Officer's Comments (Officer: Katherine Russell, Senior Policy Officer) There are currently 11,965 Contributory items across 25 council areas (14 within the GAROC region and 11 within the SAROC region), which represent 1.8% of the total 741,748 separate and medium density dwellings in South Australia. (source National Trust of South Australia) Contributory Items are generally located within Historic (Conservation) Zones or Policy Areas as described in Development Plans. Contributory Items are not a near equivalent to a Local Heritage Place, but are surviving examples of a particular period and its unique character. While Contributory Items are not recognised under the Development Act 1993, they were supported by the State Government through a Heritage Planning Bulletin prepared in 2001 that established how policies should be applied in the preserving of the historic elements of Contributory Items The Minister for Planning wrote to councils about Contributory Items on 2 May 2019 outlining the approach proposed by the State Government to transition heritage and character into the new Planning and Design Code. The Minister invited councils to consider a Development Plan Amendment process (DPA) to identify Contributory Items that ‘may be worthy of Local Heritage Place status’. The Minister further advised that ‘transitional Regulations are currently being put in place to allow DPAs to be finalised within a 6-month period post-implementation of the Phase 3 Planning and Design Code (effectively December 2020) without the need to initiate a Code Amendment’. On 20 May 2019, the LGA President wrote to the Minister for Planning outlining the LGA’s position on retaining Contributory Items in the Planning and Design Code and highlighting concerns that the proposed transition process would impose a significant financial and resourcing impost on local government. Briefings on heritage issues have also been provided to Opposition and crossbench members, and the LGA participated in a heritage and character roundtable convened by the Shadow Minister for Planning with other stakeholders. On 30 May 2019, the LGA held a workshop with heritage and planning staff from a range of member councils, many of which have significant numbers of Contributory Items. The workshop participants were clear that they believe the invitation for councils to commence a Development Plan Amendment (DPA) process to elevate current Contributory Items to Local Heritage Places is flawed. The process does not allow enough time for councils to consider an appropriate approach under the new Planning and Design Code and has significant financial and resource implications for councils that might choose to take this course of action. At its meeting on 1 July 2019, GAROC endorsed the LGA Heritage Position Paper and the recommendations therein: 1. that current heritage classifications and protections including Historic Conservation Zones/Policy Areas and Contributory Items be transitioned in their current form into Generation 1 of the new Planning and Design Code; 2. that the State Government implement the recommendations of the final report of the Environment, Resources and Development Committee’s Heritage Inquiry; and 3. that the State Planning Commission engages with local government on the detail of the Planning and Design Code as it relates to heritage and character, and in particular demolition control. This Position Paper has been provided to the Minister for Planning, the Shadow Minister for Planning, and the Chair of the SPC.

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At its meeting in September 2019, the LGA Board of Directors endorsed a submission on the Heritage in Transition – Practitioner Guide recently released by the State Planning Commission. Feedback from councils raised concerns that the Guide is flawed in its contradiction of the Burra Charter and misrepresentation of the legislative criteria it seeks to clarify. There are also concerns about the role the Guide might play in the new planning system, in not only reducing the capacity for valuable places to be conserved through assessment of local heritage value, but also its potential to be used in support of delisting current Local Heritage Places under the Code. A copy of the LGA’s Submission on the Guide is available at www.lga.sa.gov.au/submissions The proposed motion to the Annual General Meeting provides an opportunity for local government’s position on Contributory Items to be reinforced and for members to consider adopting a clear position in relation to the impact that the State Government’s processes will have on councils, ratepayers and the future of the many Contributory Items currently listed in Development Plans.

Financial and Resource Implications This existing activity has been anticipated in the LGA’s work program and resources are available to continue to progress this work.

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LGA General Meeting – Proposed Item of Business The purpose of this form is to request consideration by SAROC, GAROC or the Board of Directors of an item of business to be included on the agenda of an LGA General Meeting - refer Clause 16.3.1 of the LGA Constitution. Prior to submitting a proposed Item of Business, please refer to the Considering Proposed Items of Business for LGA General Meetings Guidelines. Council Name Town of Gawler The body the item is being GAROC referred to

Contributory Items Subject of the proposed item of business Proposed motion for the That the Annual General Meeting requests that the LGA lobby General Meeting the State Government and the State Planning Commission for the retention, and thus recognition, of Contributory Items within

the Planning and Design Code during the implementation of the Planning, Development and Infrastructure Act 2016. Supporting information The Heritage and Character information papers outlining the

State Planning Commission’s (SPC’s) views have been released. Submissions were welcomed, but there was no formal public consultation process. It is the desire of the SPC that the 12,000 Contributory Items located across the state, 609 within the Town of Gawler, not be specifically acknowledged within the implementing Planning, Development and Infrastructure Act 2016 Planning and Design Code. While it is acknowledged that there is currently no formal criteria against which to determine if a building contributes to existing heritage fabric of a defined locality, but they have still been a valued feature within the existing planning system and worthy of retention moving forward. LGA Policy Manual 6.1.2 Implementing the New Planning System

LGA Strategic Plan reference Key Initiative 1 – Leadership and Advocacy Key Initiative 3 – Best Practice and Continuous Improvement Council Contact Officer Ryan Viney submitting form Manager Development, Environment & Regulatory Services [email protected] 85229 271 Council Meeting minute RESOLUTION 2019:07:COU279 reference and date of meeting 23 July 2019 Date submitted to LGA 26 July 2019

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8.6 Review of the Impacts of Infill Development

Recommendation Reports from the GAROC Committee Submitted by: GAROC Approved by: LGA Board of Directors Meeting Annual General Meeting 31 October 2019 ECM: 688278

Recommendation That the Annual General Meeting requests the LGA: 1. write to the Minister of Planning to seek, in conjunction with local government, a comprehensive review of the cumulative impacts of infill development in South Australia to inform evidence-based decision making about the capacity of identified infill areas to sustain further growth and development; 2. request the preparation of a new State Planning Policy for Infill Development under the Planning, Development and Infrastructure Act 2016; and 3. advocate to and work with the State Planning Commission to ensure that South Australia’s planning system reflects leading practice and that the Planning and Design Code and associated instruments deliver quality planning and design outcomes that improve the amenity, liveability and sustainability of communities.

LGA Board of Directors Comments The Board of Directors at its meeting on 19 September supported this item of business being placed on the agenda for the Annual General Meeting recognising its strategic importance to the local government sector as a whole and the scope of the motion being to undertake a review to inform evidence-based decision making rather than committing the LGA and councils to a particular outcome.

LGA Officer's Comments (Officer: Stephen Smith, Director Policy) Local government recognises the need to contain urban sprawl. However, the increased densities resulting from infill development have placed additional pressure on services and infrastructure. Member councils have raised issues associated with traffic management, carparking, stormwater management, loss of trees, provision of open space, privacy, overshadowing and design quality in relation to infill development. While there is some recognition of these issues in the State Planning Policies that have been approved by the Minister for Planning under section 58 of the Planning, Development and Infrastructure Act, there is no holistic policy that is guiding the land use planning and funding settings specific to infill development in urban areas. It is considered that the absence of a specific State Planning Policy for infill development contributes to disjointed decision making within the land use planning system about the intensity of development permitted within an area and the capacity of that area to accommodate high levels of infill development.

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If a State Planning Policy for infill development is to be developed, a better understanding is needed of the cumulative impacts of the current policies that encourage infill development, whether the areas that are identified for further infill development actually have the service and infrastructure capacity to sustain further development, the level of investment that is required to build and sustain the capacity of infill areas, and how this investment is to be prioritised and funded. There is an opportunity for the LGA to play a leadership role in addressing this issue by advocating for a review of the impacts of infill development to be undertaken by the State Government in conjunction with local government and that the outcomes of this review inform the development of a State Planning Policy for infill development. People and Neighbourhoods Discussion Paper On 23 September, the State Planning Commission released a People and Neighbourhoods Discussion Paper that proposes a range of new planning policies designed to improve residential infill development. These policies will be incorporated within the draft Planning and Design Code that will soon be released for public consultation. The policies proposed in this Discussion Paper will be carefully reviewed by the LGA in consultation with members, to determine the extent to which they address the infill development issues raised by councils and would form a sound basis for a State Planning Policy for Infill Development.

Financial and Resource Implications The LGA has allocated substantial resources to planning reform over the past 6 years to advocate for positive changes to the system and assist councils to implement changes as they have come online during the staged implementation program. This work has been assisted by the allocation of funding from the Local Government Research and Development Scheme. The LGA hold regular briefings for member councils with DPTI and the State Planning Commission, and the sector is represented on the Minister’s Liaison Group by Mayor David O’Loughlin and Ms Lisa Teburea, Executive Director Public Affairs. Planning continues to be a major theme in the LGA’s Advocacy Plan and has also been adopted a priority for both SAROC and GAROC. With support from members at the AGM, the proposed actions will be undertaken in conjunction with the various planning activities outlined in the business plans and the LGA, GAROC and SAROC.

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6.1 Review of the Impacts of Infill Development

Reports for Discussion From: Stephen Smith, Director Policy Key Initiative: K.I 1 Leadership and advocacy Strategy: 1A Listen to, and represent members Meeting: GAROC Committee 2 September 2019 ECM: 686235

Recommendation That the GAROC Committee requests the approval of the LGA Board of Directors for the following item of business to be included on the agenda for the LGA Annual General Meeting to be held on 31 October 2019: That the Annual General Meeting requests the LGA: 1. to write to the Minister of Planning to seek, in conjunction with local government, a comprehensive review of the cumulative impacts of infill development in South Australia to inform evidence-based decision making about the capacity of identified infill areas to sustain further growth and development; 2. to request the preparation of a new State Planning Policy for Infill Development under the Planning, Development and Infrastructure Act 2016; and 3. to advocate to and work with the State Planning Commission to ensure that South Australia’s planning system reflects leading practice and that the Planning and Design Code and associated instruments deliver quality planning and design outcomes that improve the amenity, liveability and sustainability of communities. Discussion The GAROC Terms of Reference (6.3) enables GAROC to develop proposals for policy positions for consideration at a General Meeting either in response to an issue raised by a member within the GAROC regional grouping or independently. Any policy positions developed independently by GAROC must be referred to the Board of Directors for consideration and determination as to whether or not the position should be put for consideration and adoption to a General Meeting GAROC recognises the importance of decisions that support the built and natural environment and supports well-considered planning processes that achieve good design outcomes and the preservation of character and local heritage. (GAROC Strategic Plan Theme 1: Built & Natural Environment and Planning). Objective 1 under this Theme is: Advocate to the State Government to ensure that South Australia’s planning system reflects leading practice and that the Planning and Design Code and associated resources delivers quality design outcomes that complement and preserve the special qualities of local communities. The associated Action within GAROCs Annual Business Plan identifies that GAROC will:

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Advocate to the State Government on behalf of metropolitan councils on the implementation of the Planning Development and Infrastructure Act 2016 and the Planning and Design Code, particularly they relate to good design and heritage practices and the impact on our local communities. Local government recognises the need to contain urban sprawl. However, the increased densities resulting from infill development have placed additional pressure on services and infrastructure. In particular, member councils have raised issues associated with traffic management, carparking, stormwater management, loss of trees, provision of open space, privacy, overshadowing and design quality in relation to infill development. While there is some recognition of these issues in the State Planning Policies that have been approved by the Minister for Planning under section 58 of the Planning, Development and Infrastructure Act, there is no holistic policy that is guiding the land use planning and funding settings specific to infill development in urban areas. It is considered that the absence of a specific State Planning Policy for infill development contributes to disjointed decision making within the land use planning system about the intensity of development permitted within an area and the capacity of that area to accommodate high levels of infill development. If a State Planning Policy for infill development is to be developed, better understanding is needed of the cumulative impacts of the current policies that encourage infill development, whether the areas that are identified for further infill development actually have the service and infrastructure capacity to sustain further development, the level of investment that is required to build and sustain the capacity of infill areas, and how this investment is to be prioritised and funded. It is recommended that GAROC play a leadership role in addressing this issue by advocating for a review of the impacts of infill development to be undertaken by the State Government in conjunction with local government and that the outcomes of this review inform the development of a State Planning Policy for infill development. Given this is a priority issue of strategic importance to many metropolitan councils, it is recommended that GAROC seek the approval of the LGA Board of Directors to place the recommended motion as an item of business on the agenda for the LGA Annual General Meeting.

Financial and Resource Implications GAROC has provided a $40,000 budget allocation in its Annual Business Plan to support the Objective and Action.

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8.7 Reform in the aged care sector (Gawler)

Recommendation Reports from the GAROC Committee Submitted by: Town of Gawler Approved by: GAROC Committee Meeting Annual General Meeting 31 October 2019 ECM: 688271 Attachment: 684697

Recommendation That the Annual General Meeting requests the LGA to assist councils to navigate the changes to the Aged Care sector through information provision and advocacy.

GAROC Committee’s Comments GAROC approved the item of business being placed on the agenda for the LGA Annual General Meeting, recognising the impact the continuing uncertainty around the future of aged care funding is having on councils.

LGA Officer's Comments (Officer: Rebecca Muller, Senior Policy Officer) A significant issue for local government in recent years has been the anticipated move to integrate the Commonwealth Home Support Programme (CHSP) and the Home Care Packages program into a single ‘care at home’ program. Councils have traditionally been block funded to provide services and the proposed change to individualised funding may affect the viability of council services funded by these programs. The ongoing uncertainty around the future of this funding continues to be a challenge for councils in terms of long-term program planning, staffing, moral and service capabilities. The LGA has produced several pieces of work aimed at assisting councils to navigate the proposed aged care reforms, the main one being the 2017 Discussion Paper, Aged Care funding – issues for local government. This Paper considered the options available to councils for future aged care service models, from ‘Fully in’ through to ‘Fully out’ and posed a series of questions to facilitate considerations within councils and support decision making about the preferred service model of individual councils. LGA Ageing Strategy In 2016, the LGA worked with member councils and the Local Government Professional’s Community Managers Network to establish the LGA Ageing Strategy 2016-2021. The Strategy focuses on how the needs of older people can be better integrated into the work that councils do, such as community/strategic planning, community engagement, land use planning, public realm design and upgrading and direct service delivery for older community members. Implementation of the Strategy is being led by the LGA, with support from the Community Managers Network who are playing a significant role in achieving the goals of the strategy.

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The overarching goals as outlined in the LGA Ageing Strategy are to: 1. provide effective leadership and advocacy to enable councils to deliver better outcomes for our communities as they age; 2. develop productive partnerships that generate leverage for councils; 3. support councils develop skills and competence to enable the provision of age-friendly places, spaces and experiences; and 4. communicate and promote examples of good practice. Copies of the following information and advocacy papers are available on the Ageing page within the members section of the LGA’s website1. Information provision The LGA Issues Paper, Beyond 2018: Aged Care Service Delivery (2016), considers the future role of local government in the context of these reforms and presents a role for the LGA to inform future decision making and advocacy. The LGA Discussion Paper, Aged Care funding – issues for local government (2017) aimed to ensure that councils were sufficiently informed to respond to the Commonwealth Government’s aged care reforms and to engage in the debate; both within their own council and with future consultation on the continuing national reforms. In March 2019 the LGA, supported by Office for Ageing Well, facilitated an Ageing Well Forum to explore ageing and wellbeing now and into the future. The program included a number of presentations on four key themes; Stereotypes (breaking down), Wellbeing, Planning & Infrastructure and Influence. Presenters including Council on the Ageing (COTA SA), Active Ageing Australia, the Waverton Hub, Walk 21 - Infrastructure for Active Ageing along with presentations from the City of Port Adelaide Enfield on their ‘Good Life’ project (partnering to build Age Friendly communities) and City of Norwood, Payneham and St Peters on their Age Friendly Wayfinding strategy. Advocacy In 2016, the LGA made a submission to the Commonwealth Government’s independent Aged Care Legislated Review outlining the challenges that the pending changes posed to the way the local government sector delivers services and supports to older Australians in their communities. The LGA and the Australian Local Government Association (ALGA) Board have continued to engage at the Commonwealth level regarding the proposed changes to CHSP funding. At the LGA’s request, this issue was included as part of ALGA’s 2019-20 Federal Budget Submission2 seeking a commitment from the Commonwealth to continue the CHSP programme beyond 2020 for a further three years at a minimum. The recent 2019-20 Federal Budget included funding to extend CHSP for two years from 2020/21. This is now the third extension to this program. Royal Commission into Aged Care and Quality The LGA Secretariat provided a number of comments to assist the Municipal Association of Victoria (MAV) with their appearance before the Royal Commission in March 2019.

1 https://www.lga.sa.gov.au/page.aspx?u=6620 2 https://cdn.alga.asn.au/wp-content/uploads/ALGA-Budget-Submission-2019-20.pdf page 28

Local Government Association of South Australia LGA Annual General Meeting - Agenda & Papers - 31 October 2019 - Page 350

In June 2019, the LGA Board of Directors also endorsed an LGA submission to the Royal Commission into Aged Care and Quality. The LGA’s submission highlights that the Commonwealth aged care reforms have created a high degree of uncertainty for councils and communities and calls on the Commonwealth to commit to ongoing recurrent funding beyond the term of the current extension. The submission further asserts that local government should be recognised as a planner, funder and deliverer of home and community services and other spheres of government should work in partnership with councils to leverage our unique position to provide a holistic approach to social inclusion and support for people as they get older. The LGA consulted with member councils via the Community Managers Network in order to develop the submission to the Royal Commission. The submission aligns with the key aged care reform advocacy messages previously developed. The submission from South Australia will act to support and strengthen local government’s ongoing advocacy for a commitment by the Commonwealth to the ongoing recurrent funding for expansion of the CHSP. The LGA will continue to progress projects and advocacy which align with the overarching goals in the LGA Ageing Strategy.

Financial and Resource Implications This activity has been anticipated in the LGA’s work program as part of the continued delivery of the 2016-2021 Ageing Strategy. Resources are available to progress this work to assist councils.

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LGA General Meeting – Proposed Item of Business The purpose of this form is to request consideration by SAROC, GAROC or the Board of Directors of an item of business to be included on the agenda of an LGA General Meeting - refer Clause 16.3.1 of the LGA Constitution. Prior to submitting a proposed Item of Business, please refer to the Considering Proposed Items of Business for LGA General Meetings Guidelines. Council Name Town of Gawler The body the item is being GAROC referred to

Proposals may only be submitted to the ROC of which council is a member, or to the LGA Board of Directors. Subject of the proposed item of Reform in the aged care sector business

Proposed motion for the That the Annual / Ordinary General Meeting requests the LGA to General Meeting assist councils to navigate the changes to the Aged Care sector through information provision and advocacy.

Supporting information The continued reforms to the aged care sector are an ongoing

Provide a summary of the issue(s), challenge for Councils. Uncertainty in regards to funding affects relevant background information, Council’s future planning both in regards to service delivery description of the impact on the sector (Commonwealth Home Support Services) and planning for an and evidence that this is an item of ageing community. This item is of importance to local strategic importance to local government. government, as a lack of clarity around the future of the aged care sector and how it will be managed directly impacts services and a large sector of the community. LGA Policy Manual N/A

Does this item require a change to the LGA Policy Manual (new policy or amendment to existing policy)? Strategy 1a: Listen to, and represent members. LGA Strategic Plan reference Strategy 2c: Equip councils for the future. Erin Findlay Council Contact Officer Manager Library & Community Services submitting form [email protected] 0488 995 133 RESOLUTION 2019:07:COU279 Council Meeting minute 23 July 2019 reference and date of meeting 26 July 2019 Date submitted to LGA

Please return Word version of completed form to [email protected]. Refer to LGA Circulars in respect to deadlines for upcoming General Meetings.

LGA of SA ECM 684697 Proposed Item of Business – Town of Gawler – Reform in the aged care sector Page 1