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Victoria Grants Commission Annual Report 1979

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1979 VICTORIA GRANTS COMMISSION ANNUAL REPORT 1979 Ordered by the Legislative Assembly to be printed By Authority : F. D. Atkinson, Government Printer Melbourne No. 56 VICTORIA GRANTS COMMISSION MEMBERS D.V. Moye B.Ec .• H.D.A. (Hons). Chairman F.S. Bales F.I.M.A .• J.P. S.L. Cooper J.P. SECRETARY F.M. Thomas (Acting) B.Ec. (Hons). VICTORIA GRANTS COMMISSION ANNUAL REPORT 1979 The Hon. Dighy Crozier, M.L.C.. Minister for Local Government. 480 Col/ins Street. MELBOURNE. V/C. 3000. As Members appointed under section 3 of the Vicroria Grants Commi.uion Act 1976, we have the honour to present the third Annual Report of the Victoria Grants Commission, in accordance with section 17 of that Act. D.V. MOYE. Chairman F.S. BALES. Member S.L. COOPER. Member F.M. THOMAS, Acting Secretary November. 1979 TABLE OF CONTENTS INTRODUCTION.............................................................................................. 9 CHAPTER I. THE YEAR'S ACTIVITIES............................................................. ll Board of Review of the Role. Structure and Administration of Local Government............................................ ..... ...... .......... 13 Review of State Shares of Amount of Personal Income Tax for State Government.................................................................. 13 Conference of State Grants Commissions...................................... 14 Other Conferences. Seminars. etc................................................... 14 2. THE BASES OF THE DETERMJNATIONS..................................... 15 As-of-Right Entitlement.................................................................. 16 Equalisation ........... ....... ....... ............ ........ .... .. .... ...... ..... ... ........ ...... 17 Revenue raising needs.............................................................. 17 Expenditure needs and disabilities.......................................... 20 Standards........................................................................................ 21 Determining the Individual Allocations.......................................... 23 Acknowledgements.......................................................................... 24 APPENDICES I Transmittal Memorandum and Determinations ..................................... 25 11 Municipalities Inspected 1978-79 ........................................................... 32 Ill Revised Categories of Municipalities..................................................... 34 IV Formulae................................................................................................ 36 V Distribution of Rateable Property, Rate Income. Rating and Population .................................. ..... ............... ................. 40 INTRODUCTION In October 1976, the Parliament of Victoria enacted the Victoria Grants Commission Act 1976 giving authority to the Government of Victoria to establish the Victoria Grants Commission. The primary role of the Commission is to determine the allocation between municipalities in Victoria of grants from the Commonwealth to the State for local government authorities under the provisions of the Commonwealth's Local Government (Personal Income Tax Sharing/ Act 1976. The Victoria Granu Commission Act 1976 was proclaimed on 9 February 1977 and the Commission. consisting of a fulltime Chairman and two part-time Members. was formally constituted on 24 May 1977. By notification in the Commonwealth Gazette of 30 June 1978, the Victoria Grants Commission was formally declared the body to be the Local Government Grants Commission of the State of Victoria. in accordance with section 4 of the Local Government (Personal Income Tax Sharing 1 A et 1976. Section 12 of the Victoria Grants Commission Act 1976 requires the Commission, on or before 31 August each year. to determine the amount to be allocated to each municipality in that year. The Commission's determination for the 1979-80 financial year was delivered to the Minister for Local Government on 31 August 1979. A copy of the transmittal memorandum and of the determination are included in Appendix I to this Report. Section 17 of the Act requires the Commission to report to the Minister by 30 November each year on the activities of the Commission during the preceding year ended 31 August. This Report is in compliance with that requirement. 9 CHAPTER I THE YEAR'S ACTIVITIES 1.1. The primary role of the Victoria Grants Commission is to determine. on or before 31 August each year, the allocation among municipalities in Victoria of general revenue grants from the Commonwealth to the State for local government authorities under the provisions of the Commonweath's Local Government (Personal Income Tax Sharing} Act 1976 and under the Victoria GrantJ Commission Act 1976 which complements it. 1.2. The Victoria Grants Commission Act provides that: " l 0. (I) Each municipality shall supply the prescribed information to the Commission - (a) on or before the day fixed by the Commission by notice published in the Government Gazette; or (b) in the case of a particular municipality, on or before such later date as is fixed by the Commission for that municipality. (2) Where a municipality has not complied with sub-section (I) the Commission shall nevertheless allocate to the municipality its 'As-of-Right Entitlement'." The Act also provides that: " 13. The Commission or any member thereof may carry out such inspection, conduct such hearings, take such evidence and generally make such investigations as the Commission thinks necessary for the purpose of properly carrying out its functions under this Act." In relation to proceedings before the Commission the Act stipulates that: " IS. A municipality may be represented in proceedings before the Commission by Councillors or the municipal clerk or the municipal engineer or full-time officers of the municipality and not otherwise." Provision is also made enabling the Minister for local Government to "on his own motion or at the request of the Commission make written submissions to the Commission as to any factors which appear to the Minister to be of special significance in relation to all or any municipalities in the rele\':ant financial year" (section 14). The Minister is required to publish notice of a submission in the Government Gazette. to lay copies of the submission before both Houses of Parliament and make copies of it available to the public. 1.3. In addition, pursuant to section 16 of the Victoria Grants Commission Act 1976, the Commission is required to "enquire into and report upon any other matter relating to local government finances which is referred to it by the Minister." No such matter was referred to the Commission during the year ended 31 August 1979. 1.4 The Commission was formally convened on one hundred and eighteen days during the year ended 31 August 1979 in order to undertake inspections and confer with Council representatives and to consider written submissions and other evidence relevant to the determination of allocations for the 1979-80 financial year. 1.5. During the year visits were made to 63 municipalities throughout the State; for the most part a full day was spent in each. This enabled the Commission to undertake a detailed inspection of each municipality and to set aside time for discussion with Councillors and their officers about the Commission's role and the municipality's submissions (see Appendix 11 for list of municipalities visited). The Commission expects to visit each municipality in the State once in about every three years on this basis. 11 1.6 Much of the Commission's time and resourees has been given over to the examination of methods used for comparing revenue-raising capacity and costs or services, with a view to increasing the use of objective measures and reducing the heavy reliance on judgment that has been an unavoidable aspect of earlier determination&. The greater use of objective measures and improvements to methodology is expected to enhance the equity and predictability of the allocations. 1.7. Central to the development of methodology is the availability of good quality data. The Victoria Grants Commission Act 1976 provides authority for the Commission to require each municipality to provide prescribed information by a date fixed by the Commission. In conformity with section 10 or the Act. 6 December 1978 was the date fixed by notice in the Gowrnmtnt Gazette No. 98 of 25 October 1978 as the date by which the prescribed information for the financial year ended 30 September 1978 should be returned to the Commission. 1.8. As indicated in last year's Report, the Commission has been working closely with the Victorian office of the Australian Bureau of Statistics on the development of a joint return of statistical information to serve the needs of the Commission and the Bureau. The format for the 1978 Return, which related to the year ended 30 September 1978, was designed to cover all of the detail required by the Bureau for its purposes and to meet specific requirements of the Commission. This enabled the Bureau to dispense with its separate collection of financial data from municipalities and has provided the Commission with very much higher quality data than has previously been available. Apart from some minor amendments which are designed to improve the quality of the reporting, the Return for the year ended 30 September 1979 is in the same format as that for 1978. 1.9. The Commission has again emphasised the importance of the timely receipt of accurate statistical information
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