NORTHERN TERRITORY GRANTS COMMISSION Annual Report 2010-11 ISSN 1835-4440 GRANTS COMMISSION 03 Annual Report Report Annual , I have pleasure in presenting to you the the you to presenting in pleasure , I have Local Government Grants Commission Act Commission Grants Government Local

In accordance with section 16 of the section 16 of the with accordance In Ms Malarndirri McCarthy MLA Minister Dear Minister for Local Government Government Local for Minister House Parliament 0801 NT DARWIN Bob Beadman Beadman Bob Chairman 2011 14 October Yours sincerely Yours Annual Report for the Commission on its activities for 2010-11. Included in the report are the financial statements for for statements financial the are report the in 2010-11. Included for activities on its Commission the for Annual Report 2011. 30 June ended year the Annual Report 04

CONTENTS

Foreword 06 The Northern Territory Grants Commission 08 Background 09 Relevant legislation 09 Organisation and People 10 Membership 11 Members’ profiles 12 Administration and staffing 13 Summary of Activities 2010-11 14 Methodology 15 Annual conference 15 Executive Officers’ meeting 16 Visits to local governing bodies 16 Public hearings 16 Financial data 16 Annual financial statements 16 Submissions 16 Payments 2010-11 16 Estimated entitlement 2011-12 17 Entitlement 2010-11 17 Cash entitlement 2011-12 17 Communication with councils 17 Council letters of advice 17 Revenue and expenditure assessments of local governments 17 Recommendations 18 Chairman’s letter 19 Recommendation Schedule 2011-12 21 Schedules 22 Schedule 1 Population 2011-12 23 Schedule 2 Cost adjustors and key drivers 2011-12 23 Schedule 3 Road lengths 2011-12 24 Schedule 4 Reconciliation of local government income and expenditure 25 Schedule 5 Local government income 2009-10 26 Schedule 6 Actual local government expenditure 2009-10 27 Schedule 7 Assessed revenue 2009-10 28 Schedule 8 Summary standardised revenue 29 NORTHERN TERRITORY GRANTS COMMISSION 05 36 30 31 32 35 37 38 41 42 43 45 44 Annual Report Report Annual

Northern Territory Grants Commission balance sheet sheet balance Commission Grants Territory Northern 2011 30 June ended year the for statement and income Methodology and formula factors and formula Methodology (ACLG) Government Local of Classification Australian The classification by governments local Territory Northern areas map of shire Territory Northern Government Local for Minister the to Report Auditor’s Independent Visits to local governing bodies governing local Visits to 2009-10 their lodge to failed who of councils Schedule specified date the by statements annual financial grants road and local purpose general of allocation the for principles National Standardised expenditure Standardised 2011-12 grants assistance of financial share National 

ices ix C C ix D ix E ix F ix ix B ix hedule 10 hedule 11 hedule 12 hedule Sc Sc Sc Append Append Append Append Append Append Appendix A A Appendix  Schedule 9 Schedule Foreword Annual Report 07 NORTHERN TERRITORY GRANTS COMMISSION

On behalf of my fellow Commissioners I am pleased to The Commission conducted a series of well attended visits present the 25th annual report of the Northern Territory to shires and their service delivery centres throughout the Grants Commission. The report contains information on the 2010-11 year. Five shire councils and their respective service distribution of funding, as well as detailing the objectives, delivery centres were visited, with a public hearing being performance and future directions of the Commission. My held in Litchfield. belief is that the report conveys sufficient relevant information On behalf of the Commission members I wish to record our on the Commission’s programs and performance during appreciation for the valuable cooperation and assistance that the year to enable any interested agency, organisation we have received during our work throughout the year from or individual to assess its operations and functioning. local governing bodies, and in particular, those visited during The coincidence of the introduction of New Local Government the course of the year. in 2008-09 and the completion of the phased-in

The Commission is grateful for the executive support and methodology has allowed the Commission to take breath assistance provided by Mr Peter Thornton and Mrs Donna and determine its priorities into the future. Hadfield of the Local Government Grants Program of the During 2010-11 the primary focus of the Commission was Department of Housing, Local Government and Regional the further refinement of our methodology in the following Services, combined with assistance and services provided two areas: by regional offices of the Department. • Review of the Location Factor; and I would also like to acknowledge the efforts of my colleagues: • Re-examine the regional centre recognition issue Ms Trish Angus, Mr Damien Ryan, Mr Steven Hennessy and deputies Mrs Lissa Herrmann and Mrs Margaret Vigants. During the course of the 2011-12, the Commission will also Their assistance has been very much appreciated. be examining it road funding methodology in light of the proposed local road transfers form the Northern Territory There is no doubt that 2011-12 will be equally as challenging Government to the recently created shires now that almost as the previous year. On behalf of all Commissioners, I look full incorporation of the Northern Territory has been achieved forward to working with the Minister for Local Government, (as opposed to the previous five per cent of the land mass). all councils, councillors and staff and the Commonwealth Department of Regional Australia, Regional development Further information on the status of these activities is and Local Government in the allocation of the funding, and contained within the body of the report. in particular on any further refinement of the methodology. Whilst the early information technology problems experienced by shires have been largely resolved, it is disappointing that a large number of the shire councils are still not meeting the statutory deadlines for submitting their audited financial statement and annual data returns to the Commission. However, I am pleased to advise that all councils eventually Bob Beadman produced a full set of 2009-10 audited financial statements, Chairman along with completion of annual returns to the Commission. It is hoped that the continued delays experienced by the eight new local government shires in the presentation of this data will not be repeated in future years. The data collected is forwarded to the Australian Bureau of Statistics (ABS) for use in government finance statistics and national accounts. Through this process, a very good working relationship has been established between the relevant staff of ABS and the Commission. The Commission Annual Report 09 NORTHERN TERRITORY GRANTS COMMISSION

Bca kground Relevant Legislation On 1 July 1986, the Commonwealth Government began The Northern Territory’s Local Government Grants a process of yearly appropriations to the state/territory Commission Act also repeated a requirement of an earlier Act governments for distribution as financial assistance grants that provides for the appointment of Commission members, to local governing bodies within the respective jurisdictions. and specifies the general operations of the Commission, A subsequent review of the enabling legislation led to the including the annual reporting requirements. current Act, the Local Government (Financial Assistance) The Commonwealth’s Local Government (Financial Act 1995. Assistance) Act 1995 provides for the basis of the allocation Under section 6(1) of the Act, the Commonwealth Minister, of financial assistance by each Local Government Grants

after consulting with the relevant state Ministers and with Commission to its respective local governing bodies in its bodies representative of local government, must formulate state and/or the Northern Territory. national principles. The national principles formulated by the Commonwealth In formulating the national principles, the Minister: Minister are to guide the respective Local Government (a) is to have regard to the need to ensure that the allocation Grants Commissions in the allocation of funds to local of funds for local government purposes is made, as far as governing bodies within their own jurisdictions. practicable, on a full horizontal equalisation basis; but The number of national principles currently stands at (b) must ensure that no local governing body will be seven – six applying to the allocation of general purpose allocated an amount in a year that is less than the amount grants and one applying to the allocation of local road that would be allocated to the body if 30 per cent of the grants. The national principles are detailed at Appendix A. amount to which the state/territory is entitled, in respect of the year, was allocated among local governing bodies on a per capita basis. The Local Government (Financial Assistance) Act 1995 also requires each state and the Northern Territory to have a Local Government Grants Commission. In accordance with that requirement, the Northern Territory legislated for a statutory, independent commission, the Northern Territory Grants Commission (the Commission), in June 1986.

Role of the Northern Territory Grants Commission The Commission is established as an independent statutory authority under the Local Government Grants Commission Act. Its primary role is to recommend the allocation of the financial assistance grants provided by the Commonwealth Government for Northern Territory local governing bodies in the form of general purpose grants and local roads grants. Organisation and people Annual Report 11 NORTHERN TERRITORY GRANTS COMMISSION

Membership The Local Government Grants Commission Act 1986 provides for a Commission of four members, consisting of: • a Chairman appointed by the Minister; • the Chief Executive Officer (CEO) of the agency primarily responsible to the Minister for the administration of the Act, or his delegate, and • two members appointed by the Minister, one representing the interests of municipal councils and the other representing the interests of shire councils. In 2010-11, the members of the Commission were:

Mr Bob Beadman Chairman – appointed 1 November 2002 to 31 October 2012 Ms Trish Angus CE’s delegate – appointed 5 January 2010 Mr Damien Ryan Representing municipal councils – appointed 25 November 2008 to 31 August 2011 Mr Steven Hennessy Representing shire councils – appointed 11 May 2010 to 31 August 2013 Mrs Lissa Herrmann Deputy of Mr Ryan Mrs Margaret Vigants Deputy of Mr Hennessy

In 2010-11, the Accountable Officer of the Commission was:

Mr Peter Thornton Accountable Officer – appointed 28 July 2009 Annual Report 12

Members Profiles

Bob Beadman Bob was appointed Secretary to the Northern Territory Damien was awarded the Photographic Imaging Council of Department of Lands, Housing and Local Government and CEO Australia (PICA) Award as Photographic Dealer of the Year in 2000. to the Office of Aboriginal Development on 31 October 1994. In 2002 he achieved industry support for his proposal He retired from these positions on 18 December 2001. to raise more than $250,000 in three years by selling photo frames to fund research into the causes of dementia and From 1973, Bob was involved in Aboriginal affairs at senior Alzheimer’s disease, receiving the NT Achiever Award in 2005 levels in the Commonwealth Department of Aboriginal Affairs, for his efforts. He was named a Paul Harris Fellow by Rotary and previously worked in the Top End and International in 2006 for his assistance towards the furtherance on separate occasions. He acted at Deputy Secretary level on of better understanding and friendly relations among peoples numerous occasions. of the world. Career highlights include working with Torres Strait Islanders Damien was elected Mayor of Alice Springs in March 2008 – at the Prime Minister’s request – on Australia’s International and is passionate about promoting Alice Springs as a tourist Border with Papua New Guinea, two extended periods as destination. He works tirelessly to make ‘the Alice’ the best Senior Private Secretary to the Minister for Aboriginal Affairs and possible place it can be, both for those who live in Central representing Australia at the International Labour Organisation Australia and those who visit. and the United Nations Working Group on Indigenous peoples. In the Territory, Bob’s career highlights have included reform Steven Hennessy of the approach to local government, public housing policy Steven was born in South Australia and spent his youth in the and library grants distribution methodology. He was Chairman Riverland before moving to Adelaide. He had a career in event of the Swimming Pool Fencing Review Panel and the recently support management for Spotless Catering across south-east retired NT Coordinator General for Remote Services (May 2009 Australia from the early 1980s until 1995, when he was injured to May 2011). Bob was appointed Chairman of the Grants in a car accident. After being a regular visitor to the Territory Commission on 1 November 2002. since 1998, he became a permanent resident of Timber Creek, 300 kilometres south-west of Katherine, in 2005. Trish Angus Steven became a councillor for the Victoria Daly Shire Council Trish joined the department in 1999. During the past 10 in October 2008. He is also a delegate of the Local Government years, she has held a range of executive level positions and Association of the Northern Territory, a member of the Timber has provided stewardship for the department through a Creek Fire and Emergency Response Group, and a member of the number of significant changes and reforms. Trish has been the Katherine West Health Board’s non-Indigenous sub-committee. Executive Director for Policy and Program Development since the departmental restructure. She previously held a number of He is involved in restoration plans for the 1930s police house in executive positions in government and the community sector. Timber Creek, the last of its kind in the country. He is employed part-time by the Victoria Daly Shire Council, and has his own Trish has tertiary qualifications in health and management, general maintenance small business. including a Masters Degree in Tropical Health.

Damien Ryan Lissa Herrmann Lissa Herrmann is a resident of the Darwin rural area and Damien was born and educated in Alice Springs. He started work a long-time Territorian. She is a councillor on the Litchfield at the Alice Springs Camera Shop in 1972, and purchased the store Council. Along with being the deputy representing municipal in 1974. He also gained invaluable knowledge of the transport councils on the Northern Territory Grants Commission she is also and tourism industries as licensee of the Mt Ebenezer Roadhouse a member of the Berry Springs Water Advisory Committee and and later as co-owner of Dunmarra Roadhouse. He is Chair of the an alternate member of the Development Consent Authority Regional Development Australia – NT Inc and Executive Member – Litchfield Division. She has an administration, finance and of the Central Australian Chamber of Commerce. compliance background predominantly in the real estate and As Vice President of the Finke Desert Race, Damien is a tireless construction industries and has worked in the civil construction worker for that event and is a life member of the committee. industry for the past six years. He was President of the Alice Springs Motor Cycle Club during the late 1970s and early 1980s, and was instrumental in promoting the toughest off-road motorcycle race in Australia, the Radio Alice 12-Hour Enduro, from 1978-1988, held on Mt Ebenezer Station. NORTHERN TERRITORY GRANTS COMMISSION 13 taffing S Annual Report Report Annual and

dministration A were year the for Commission of the costs operating The of Housing, Department the to appropriated funds by met operational The Services. Regional and Government Local to $209 824.75 compared was 2010-11 for expenditure 2009-10. $183 697.47 in Donna Mrs and Thornton, Peter Mr Officer, Executive The of Housing, Department Territory Northern the Hadfield of the coordinated Services, Regional and Government Local Commission’s the with and assisted program visitation support. executive providing by activities Margaret is a long-term resident of the Northern Territory and Territory Northern of the resident a long-term is Margaret a is She 20 years. than more for areas its remote in lived has of the Association Government Local of the President former Timber then of the President the was and Territory Northern to prior years nine for Council Government Community Creek Darwin. to relocation her Steering Statehood of the member a foundation is She an organisation for worked recently and until Committee practitioners. general as doctors trains that Margaret Vigants Margaret Summary of Activities in 2010-11 Annual Report 15 NORTHERN TERRITORY GRANTS COMMISSION

The Department of Housing, Local Government and Regional Methodology Services is now examining whether there could be another Previous reports have documented the methodology review way of recognising the load on these councils through such in detail since its implementation in 2005-06. That review, a mechanism, particularly as it is believed that the majority now completed, highlighted the need for a regular process of the visitors significantly impacting on service delivery of continual improvement to further refine the revenue and costs are residents of the surrounding shires. expenditure categories and appropriate cost adjustors. Looking to the future, the Grants Commission has on A key outcome of the review was that the Commission its agenda a comprehensive review of its road funding determined that the cost adjustors of location, dispersion methodology that has remained largely unchanged and Aboriginality are used, and appropriate data collection since the implementation of the direct roads funding arrangement in 1994-95. The trigger for the review’s

processes be implemented to ensure the adjustors can be explained and supported by meaningful and relevant commencement will be the successful negotiation of information. These new cost adjustors were used for both the transfer of approximately 6500 kilometres of roads, the 2008-09 and 2009-10 allocations. currently maintained by the Northern Territory Government, to the respective shire councils. During 2010-11, the Commission undertook further research into the possible refinement of the methodology in the following areas: National Conference of • Review of the location factor - With the revised location factor now being determined on the freight delivery costs the Local Government of diesel (as provided by the PowerWater Corporation) to Grants Commissions the majority of the remote communities within the Northern Territory, the Commission’s attention turned to The National Conference of Local Government Grants whether a further determinant for this factor should be Commissions was held at the Hotel Windsor in Melbourne, explored. Some work commenced during 2010-11 around Victoria, from 12-14 October 2010. the types and standard of access to these communities with The conference covered financial assistance – 35 years on, a view that this also significantly impacts on the service population growth and movement, livability, the role of delivery costs of shire councils, particularly where the shires councils and bushfire response and recovery. incorporate remote island communities. This work will be continued during 2011-12 and may see a Papers were presented by Mr Robert Searle, former Secretary, further modified location factor adopted for the calculation Commonwealth Grants Commission; Professor Graeme Sansom, of the 2012-13 general purpose and possibly road grants. Director, Australian Centre of Excellence for Local Government: Ms Kay Rundle, Chief Executive Officer, Port Phillip City Council; • Regional centre recognition - Over many years this Ms Ruth Spielman, Executive Officer, National Growth Areas Commission (and other Grants Commissions in Australia) Alliance; Dr Bob Birrell, Centre for Population and Urban have grappled with the concept of regional centre status Research; Mr Ben Hubbard, Chief Executive Officer, Victorian and how it impacts on the expenditures and revenues of Bushfire Reconstruction and Recovery Authority; Mr Glenn the relevant local government council. These deliberations Patterson, Chief Executive Officer, Yarra Ranges Shire Council; were made with a view to determining whether a particular and Professor John McAneney, Director of Risk Frontiers. council should be ‘financially compensated’ for being a regional centre where a number of its services are utilised Delegates and partners were also invited to the official by non-rate paying clientele. conference dinner in the Grand Ballroom at the Hotel Windsor. After extensive modelling, mainly around varying population numbers for Katherine and Alice Springs, in line with extended visitation numbers, the Commission decided it was not possible to financially compensate councils affected by this population migration within the current methodology. The Commission did, however, develop a discussion paper for the consideration of the Northern Territory Minister for Local Government encouraging her to consider diverting funding from an appropriate local government funding program to these two councils in recognition of the cost imposts for such non-resident usage of council facilities and services. Annual Report 16

Executive Officers’ meeting Two Executive Officers meetings were convened during The data collected on the returns is used by the Commission 2010-11. The first was held after the conclusion of the national to enable an assessment of the income and expenditures conference in Melbourne, with the primary topic being the of individual councils and to determine total income and cancellation of the meeting that should have been convened in expenditure of all local governments in the Northern Territory. Canberra in February 2010. A key outcome of this meeting was It is also used by the ABS in its government financial statistics a firm commitment to ensure future meetings are held annually and national accounts, as well as by the department in its in Canberra and are convened by the Department of Regional local government performance measurement publications. Australia, Regional Development and Local Government. In April 2011, the Department of Regional Australia, Regional Development and Local Government, National Office of Local Annual audited financial Government convened a meeting in Canberra of Executive statements Officers from each state and territory. The Northern Territory Executive Officer, Mr Peter Thornton, attended this meeting. Regulation 17 of the Local Government (Accounting) Regulations Key issues discussed included Natural Disaster Relief and stipulates that a copy of councils’ audited annual financial Recovery Assistance, the 2011 Census and growth issues, statements are to be forwarded to the Chairman of the Northern together with presentations from each of the jurisdictions. Territory Grants Commission no later than 15 November. For the financial year 2009-10, six councils failed to lodge their annual financial statements by the date specified. These councils are Voisits t local governing bodies listed in Schedule 12. The rolling visitation program on a shire and municipal basis continued in 2010-11 The program of Commission visits takes Submissions three years to complete, although special circumstances may warrant departures from the pre-planned program. The five No submissions were presented to the Commission at public shire councils and their associated 14 service delivery centres hearings or visits during the year. visited this year are listed in Schedule 11. P aYMENTS 2010-11 Public hearings During 2010-11, grants continued to be paid in quarterly In accordance with section 11 of the Commonwealth’s instalments. The total payments to local governing bodies Local Government (Financial Assistance) Act 1995, during the year are summarised below. In addition, the the Commission held one public hearing during the Commonwealth advanced the payment of the first quarter year (in Litchfield on 9 March 2011). of the 2011-12 funding into the 2010-11 financial year as a stimulus measure, to improve councils’ financial capacity and assist in planning their works program for 2011-12.

Financial data 8 October 2010 $5 621 361 The total revenue and expenditure of councils in the 16 November 2010 $5 621 361 2009-10 financial year amounted to $465 million and $436 million respectively. Included in these amounts were 17 February 2011 $5 621 361 revenues and expenditures not considered to relate strictly 17 May 2011 $5 621 418 to local governments. Thus, for the 2011-12 allocations, the Commission determined local government income to Total distribution of 2010-2011 payments $22 485 501 be $112.452 million and local government expenditure to be $260.745 million. 23 June 2011 $7 680 741 As mentioned in the foreword, it is hoped the numerous Total 2011-12 advance payment $7 680 741 delays experienced by the eight new local government Total payment 2011-12 $30 166 242 shires in presenting financial information have been resolved for future years. NORTHERN TERRITORY GRANTS COMMISSION 17

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ntitlement stimated ash omm Subject Letter advising the estimated estimated the advising Letter 2010-11 General the for entitlements Grant Purpose the advising electronically Letter annual return an lodge to requirement Commission’s of the Distribution Annual Report the advising electronically Letter return annual road an lodge to requirement of 2011-12 release early advising Letter 2010-11 in grants a undertook Secretariat Commission The the (including workshops grant of shire series and Springs Alice In accordance with its policy to keep all Northern Territory Territory all Northern its policy keep to with accordance In and latest operations its about informed councils a regular on corresponds Commission the developments, following The issues. on many councils individual with basis C during all councils to sent items main the summarises list the year. The cash entitlement for 2011-12 is the estimated estimated 2011-12 is the for entitlement cash The general for underpayment the plus year the for entitlement 2010-11. in and roads purpose C The Commonwealth estimates of the annual CPI and the and the annual CPI of the estimates Commonwealth The than lower were population national of the share Territory’s entitlement the in This resulted and population. CPI actual the general the both for under-estimated 2010-11 being for of an underpayment and components, and roads purpose a total – roads and $47 837 for purpose general $69 981 for been made have Adjustments of $117 818. underpayment distribution the for used data on the based all councils across 2010-11. for entitlement estimated of the E The estimated entitlements for 2011-12 are based on based are 2011-12 for entitlements estimated The and the CPI annual of the estimates Commonwealth population. national of the share Territory’s E 2011-12 Recommendations Annual Report 19 NORTHERN TERRITORY GRANTS COMMISSION

CHAIRMAN’S LETTER Ms Malarndirri McCarthy MLA Minister for Local Government GPO Box 3146 DARWIN NT 0801

Dear Minister I have recently received advice on the amounts available for allocation as financial assistance grants under the Commonwealth’s Local Government (Financial Assistance) Act 1995 for the 2011-12 financial year.

In accordance with this advice and section 12(1)(a) of the Local Government Grants Commission Act, I am now pleased to present to you the Commission’s recommendations for the distribution of these grants. In making the recommendations, I confirm that: (a) all general purpose recommendations conform with section 6(2)(b) of the Commonwealth’s Local Government (Financial Assistance) Act 1995 in allocating amounts that are not less than those to which local governing bodies would be eligible to receive if 30% of the total to which the Northern Territory is entitled was distributed among local governing bodies on a per capita basis; (b) the Commission held public hearings and permitted local governing bodies and the Local Government Association of the Northern Territory to make submissions in connection with the recommendations in accordance with section 11(2)(c)(i) & (ii) of the Local Government (Financial Assistance) Act 1995; (c) road funds were divided on weighted road length but, in addition, continued to include a base or minimum figure of $10 000 for all councils on the basis that a derived figure of less than this amount would not be commensurate with a realistic acceptance of road maintenance and responsibility; and (d) the allocations comply with section 12(1)(a) of the Local Government Grants Commission Act in that the total amount of all money recommended to be allocated is equal to the amount of money provided to the Territory under the Local Government (Financial Assistance) Act 1995 for the 2011-12 financial year. The Recommendation Schedule (Attachment A) outlines the proposed grant allocations for approval by Minister Crean. The Recommendation Schedule comprises the “estimated entitlement” for 2011-12 minus the advance ‘stimulus’ payment already made in 2010-11, the cash adjustment for 2010-11 and the proposed grant recommendations.

Estimated Entitlement The Commonwealth allocates the local road and general purpose grants based on an estimated population figure and an estimated CPI growth factor for the coming year as determined by the Australian Statistician. This calculation is what is known as the estimated entitlement. The amounts for this year are $15 494 286 and $15 262 770 respectively.

Cash Adjustment This is the distribution of the underpayment of the grants in 2010-11. The underpayments were $69 981 (general purpose) and $47 837 (local roads) respectively. Underpayments (or sometimes overpayments) occur when the growth factors used in determining the “estimated entitlement” are less than or greater than the actual growth factors. The revised methodology continues its trend in directing money from the ‘bitumen to the bush’ as well as reducing the grants to the small councils in the Top End. It should be noted that there are again significant losses to be incurred by the Katherine and Alice Springs Councils. These losses will be $34 781, and $115 005 respectively. Commissioner Ryan (Mayor of Alice Springs and the municipal representative on the Commission) had great difficulty in supporting the recommendations given the significant losses again being experienced by theK atherine and Alice Springs councils. Annual Report 20

This again raises the issue of ‘regional centre recognition’, particularly in relation to the efforts of the Katherine and Alice Springs councils to have recognised the significant impacts of non resident usage of council services and on council expenditures. After extensive modelling the Commission came to the realisation that compensating these councils for this impost could not be achieved by the Financial Assistance Grants program because of the Australian Government’s legislative and administrative constraints within which this Commission must operate. I wrote to you on 19 November 2010 attaching a Commission endorsed issues paper, seeking your assistance to address this issue utilising other funding that falls within your responsibility as the Minister for Local Government. On behalf of the Commission I wrote again in mid-March 2011 seeking advice on the status of the Commission’s submission. Resolution of the ‘regional centre recognition’ issue would likely dampen what is expected to be a negative public response from the Alice Springs Town Council, and relieve Commissioner Ryan somewhat, who will shortly have to advise his council of a further $115 005 funding loss for 2011-12. Given these circumstances Minister I would again urge you to make a decision on this long running issue. In relation to the advice to councils, the Commission will continue to contain support documentation that will allow them to have a greater appreciation on exactly how the Commission has calculated their grants. The Commission’s Annual Report is currently being prepared and will be forwarded to you in accordance with section 16 of the Local Government Grants Commission Act in due course. Yours sincerely

BOB BEADMAN Chairman 5 August 2011 Annual Report 21 NORTHERN TERRITORY GRANTS COMMISSION FINANCIAL ASSISTANCE GRANTS 2011-12 Recommendation Schedule 2011-12 43 613 41 988 41 830 453 830 ($) 697 208 697 308 290 890 830 890 1 554 117 1 554 2 001 517 2 001 1 414 770 1 414 Total Total 2 122 469 1 018 943 1 018 2 910 254 1 083 823 1 083 1 943 678 1 943 2 087 556 2 087 2 596 7382 596 1 647 886 1 647 2011-12 2011-12 financial financial assistance assistance

($) 2011-12 2011-12

Total roads Total

($) $3 863 110$3 863 013 $11 679 133 $23 194 payment in 2010-11 2010-11 in Less advance advance Less 97 7 843 22 982 $47 837 ($) Add 2010-11 2010-11 adjustment adjustment

($) roads 2011-12 2011-12 Entitlement Entitlement N/A 1 177 632 3 596 290 398 890 830 ($) 2011-12 2011-12 purpose purpose Total general general Total

N/A ($) payment in 2010-11 2010-11 in Less advance advance Less 78 4 250 19 006 30 728 43 2 339 4 528 52 260 165 13 340 39 085 N/A ($) Add 2010-11 2010-11 adjustment adjustment N/A 6 824 23 178 27 441 125 6 841 20 725 384 493 1 215 98 143 287 565 ($) 268 986 1 051 57 345 212 692 825 984 2 611 210 834 617 761 625 616 2 841 154 988 473 469 713 561 2 108 170 195 545 474 402 973 1 825 99 534 305 264 2 269 352 7 186 580 285 1 696 253 373 982 1 951 106 421 269 512 571 857 1 807 145 968 427 696 580 939 3 321 181 187 403 073 908 621 2 857 230 728 680 750 2011-12 2011-12 1 604 322 7 349 400 892 1 210 779 1 843 248 5 734 463 023 1 385 959 general general 1 091 829 4 775 260 476 836 128 1 085 371 3 431 277 044 811 758 2 795 405 12 544 684 336 2 123 613 1 051 789 3 324 268 472 786 641 1 312 779 5 953 324 766 993 966 1 454 449 4 525 365 384 1 093 590 1 667 251 7 435 405 599 1 269 087 898 900 2 812 227 121 674 591 1 610 635 7 384 402 805 1 215 214 451 574 1 413 114 084 338 903 1 070 006 4 998 272 638 802 366 816 165 2 555 206 316 612 404 1 800 604 8 308 453 214 1 355 698 958 302 2 401 193 932 766 771 purpose purpose $15 262 770$15 262 981 $69 $3 817 631 120 $11 515 286 $15 494 Entitlement Entitlement herine at K Council Municipality of Darwin Municipality Tiwi Islands Shire Islands Tiwi Municipality of Palmerston Municipality Municipality of Litchfield of Belyuen Coomalie Shire Coomalie Wagait West Arnhem Arnhem Shire West East Arnhem Arnhem Shire East Victoria Daly Shire Daly Victoria Municipality of Municipality Roper Gulf Shire Gulf Roper Barkly Shire Barkly Municipality of Alice Springs Alice of Municipality Central Desert Shire Central MacDonnell Shire MacDonnell Trust Account (LGANT) Account Trust Total Schedules Annual Report 23 NORTHERN TERRITORY GRANTS COMMISSION SCHEDULE 1 Population used for the 2011-12 allocations

Council Population Municipality of Darwin 77 347 Tiwi Islands Shire 2 536 Municipality of Palmerston 30 162 Municipality of Litchfield 19 428 Belyuen Shire 209 Coomalie Shire 1 323 Wagait Shire 329 West Arnhem Shire 6 913 East Arnhem Shire 10 088 Victoria Daly Shire 7 032 Municipality of Katherine 10 112 Roper Gulf Shire 7 044 Barkly Shire 8 143 Municipality of Alice Springs 28 008 Central Desert Shire 4 822 MacDonnell Shire 7 257 Total 220 753 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items.

SCHEDULE 2 Cost adjustors and key drivers 2011-12

Indigenous Council Location Dispersion background Municipality of Darwin 1.00 1.00 1.09 Tiwi Islands Shire 1.12 1.39 1.97 Municipality of Palmerston 1.00 1.00 1.13 Municipality of Litchfield 1.00 1.10 1.07 Belyuen Shire 1.00 1.00 1.98 Coomalie Shire 1.00 1.26 1.27 Wagait Shire 1.00 1.00 1.10 West Arnhem Shire 1.09 1.52 1.81 East Arnhem Shire 1.27 2.00 1.97 Victoria Daly Shire 1.07 1.94 1.88 Municipality of Katherine 1.03 1.00 1.27 Roper Gulf Shire 1.12 2.00 1.93 Barkly Shire 1.14 1.65 1.75 Municipality of Alice Springs 1.12 1.00 1.30 Central Desert Shire 1.11 2.00 1.96 MacDonnell Shire 1.15 2.00 1.94 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items. Annual Report 24 SCHEDULE 3 Road lengths 2011-12 N/A 5.68 41.60 56.40 327.43 141.75 7 421.00 1 512.14 3 072.37 7 500.84 (sq. km) 33 302.42 49 698.26 268 784.20 282 089.76 322 693.27 185 175.81 167 575.00 Council area area Council 12.73 84.05 211.29 179.75 621.25 933.19 925.43 254.39 506.91 164.44 766.96 1 732.21 2 171.95 1 237.96 1 124.65 1 178.90 2 180.42 (km) 14 286.48 397.93 1 329 lengths Total road road Total 176.55 Cycle paths Cycle Formed Unformed Gravel 1 217.63 2 091.08 2 058.44 7 862.92 0.45 4.09 324.11 526.87 1,324.90 0.00 0.00 47.54 158.37 241.60 1,284.70 0.00 3.13 42.50 18.72 317.00 1,790.60 0.00 9.08 55.57 220.13 110.68 536.73 1.00 0.00 12.73 0.00 0.00 0.00 0.00 2.06 51.42 102.84 8.12 0.00 0.00 0.00 2.35 0.00 14.00 67.70 0.00 3.23 27.55 220.85 236.80 437.00 0.00 34.73 22.84 17.58 53.42 485.73 6.95 44.31 97.32 0.80 0.00 20.72 16.60 10.55 100.00 352.31 246.60 412.14 3.05 22.24 49.98 206.73 215.51 743.50 0.00 18.05 44.17 295.35 61.20 751.70 8.43 12.10 559.26 157.33 24.27 7.50 6.50 879.86 417.31 22.90 0.13 0.00 0.00 66.57 Kerbed Sealed herine at K Totals Trust Account (LGANT) Account Trust MacDonnell Shire MacDonnell Central Desert Shire Central Municipality of Alice SpringsAlice of Municipality 147.42 65.08 15.83 2.37 0.00 23.69 Barkly Shire Barkly Roper Gulf Shire Gulf Roper Municipality of Municipality Victoria Daly Shire Daly Victoria East Arnhem Arnhem Shire East West Arnhem Arnhem Shire West Wagait Shire Wagait Coomalie Shire Coomalie Belyuen Shire Belyuen Municipality of Litchfield Municipality Municipality of PalmerstonMunicipality 155.20 12.33 0.00 0.00 0.00 43.76 Tiwi Islands Shire Islands Tiwi Council Municipality of Darwin Municipality Annual Report 25 NORTHERN TERRITORY GRANTS COMMISSION SCHEDULE 4 Reconciliation of local government income and expenditure Reconciliation of actual revenue and expenditure as supplied by local governing bodies 2009-10

Actual revenue 2009-10 $ Identified local government revenue $ Rates and annual charges 103 351 821 General rates - municipal levied 76 703 106 Fines and penalties 1 360 485 Domestic waste 13 666 379 Grants and subsidies 240 692 633 Garbage other 1 969 148 Fuel rebate 316 427 Shire rates 7 759 701 Assets acquired without cost or below fair value 3 855 990 Parking 3 741 821

User fees and charges 33 405 103 Interest 8 612 502 Interest income 8 612 502 Total identified local government revenue $112 452 657

Profit on sale of assets 5 439 248 * Figures have been rounded and discrepancies may occur between totals Other current revenue (n.e.c) 47 537 646 and the sums of the component items. Other capital revenue 21 130 343 Total actual revenue 2009-10 $465 702 198 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items.

Actual expenditure 2009-10 $ Identified local government expenditure $ Employee expenses 164 749 403 General public service 101 507 226 Materials and contracts 142 963 905 Public order and safety 13 206 108 Depreciation 54 603 719 Economic affairs 21 681 793 Bad debts 1 250 271 Environment protection 8 425 641 Current transfers expenses 1 608 322 Housing and community amenities 55 152 194 Interest 759 532 Health 2 633 531 Other expenses 70 515 896 Recreation, culture and religion 38 267 080 Total actual expenditure 2009-10 $436 451 048 Education 8 149 856

* Figures have been rounded and discrepancies may occur between totals Social protection 11 722 022 and the sums of the component items. Total identified local government expenditure $260 745 451 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items.

Balanced budget approach used for the 2011-12 allocations $ Identified local government revenue 112 452 657 50% Roads to Recovery grants 2010-11 2 137 281 Library grants 2010-11 3 523 000 Road grants 2010-11 13 697 809 Budget term 128 934 704 Total revenue $260 745 451 Identified local government expenditure $260 745 451 Total expenditure $260 745 451 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items. Annual Report 26 SCHEDULE 5 Local government income 2009-10

Municipal Domestic Parking rates waste Garbage other Shire rates Interest restricted Total Council ($) ($) ($) ($) ($) ($) ($) Municipality of Darwin 42 127 337 4 788 399 0 0 2 039 373 3 741 821 52 696 929 Tiwi Islands Shire 0 156 999 0 353 322 228 501 0 738 821 Municipality of Palmerston 9 589 725 1 867 269 0 0 1 151 114 0 12 608 108 Municipality of Litchfield 12 883 568 1 202 749 0 0 646 375 0 14 732 692 Belyuen Shire 0 12 939 0 29 118 1 430 0 43 487 Coomalie Shire 0 81 904 0 184 324 33 354 0 299 582 Wagait Shire 0 20 368 0 45 837 15 439 0 81 644 West Arnhem Shire 0 427 970 0 963 136 92 149 0 1 483 255 East Arnhem Shire 0 624 528 0 1 405 484 317 215 0 2 347 227 Victoria Daly Shire 0 435 337 0 979 715 647 193 0 2 062 245 Municipality of Katherine 1 360 921 626 014 0 0 686 762 0 2 673 697 Roper Gulf Shire 0 436 080 0 981 387 407 260 0 1 824 727 Barkly Shire 0 504 117 0 1 134 502 127 203 0 1 765 822 Municipality of Alice Springs 10 741 555 1 733 920 1 969 148 0 1 216 909 0 15 661 532 Central Desert Shire 0 298 520 0 671 813 459 012 0 1 429 345 MacDonnell Shire 0 449 266 0 1 011 063 543 213 0 2 003 542 Total $76 703 106 $13 666 379 $1 969 148 $7 759 701 $8 612 502 $3 741 821 $112 452 657 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items. Annual Report 27 NORTHERN TERRITORY GRANTS COMMISSION SCHEDULE 6 Actual local government expenditure 2009-10 ($) 736 209 Total Total 1 347 7351 347 3 318 436 27 27227 122 32 531 123 531 32 12 861 515 12 861 34 515 224 34 515 18 790 222 18 423 87718 423 9 849 860 9 849 35 086 512 35 76 366 519 76 45 483 224 483 45 38 787 843 38 787 41 290 959 41 39 789 668 39 789 0 0 0 0 0 0 0 ($) Social Social protection protection

0 ($) religion religion Recreation, Recreation, culture and culture $46 374 420$46 374 879 475 $19 048 451 $436 0 0 2 470 974 7 479 397 0 118 484 338 258 ($) and safety and safety Public order order Public $16 086 404 0 ($) amenities amenities community community Housing and Housing 0 0 7 900 000 2 846 460 332 160 2 920 103 0 1 788 324 1 414 327 3 609 577 56 910 0 3 407 423 0 14 034 098 2 467 347 2 392 467 805 046 0 527 037 258 495 2 285 164 0 115 443 3 340 133 443 0 21 396 61 935 604 055 0 234 162 0 882 881 210 079 1 609 064 0 5 094 057 421 354 4 937 968 0 3 332 195 77 7601 337 283 22 055 ($) Health Health $3 228 952$3 228 736 $76 502 ($) public public General General services $170 053 696 053 $170 0 37 461 265 0 2 926 878 ($) protection protection Environmental Environmental 0 0 590 607 12 144 061 0 9 385 277 14 379 649 0 478 587 18 757 781 0 448 467 14 020 446 0 1 014 350 1 481 183 0 5 553 278 551 0 430 209 1 419 334 0 1 608 655 223 0 283 032 17 280 229 174 163 17 109 647 3 197 637 20 860 804 ($) Education Education 0 ($) 538 731 918 641 199 879 781 507 affairs affairs 2 328 403 1 897 059 1 921 062 9 319 469 1 565 728 6 112 16 728 066 2 248 489 8 777 487 7 131 1 309 317 1 329 160 7 528 655 962 836 10 159 5 819 438 Economic Economic $81 226 535 367 $8 649 293 $14 619 10 665 657 5 440 196 393 151 14 473 093 463 306 5 323 140 1 984 565 2 304 294 4 435 822 11 422 021 215 344 236 737 10 786 908 342 994 8 189 212 2 436 133 3 069 366 2 089 128 herine 4 283 631 at K Total MacDonnell Shire MacDonnell Central Desert Shire Central Municipality of Alice Municipality Springs Barkly Shire Barkly Roper Gulf Shire Gulf Roper Municipality of Municipality Victoria Daly Shire Daly Victoria East Arnhem Arnhem Shire East West Arnhem Arnhem Shire West Wagait Shire Wagait Coomalie Shire Coomalie Belyuen Shire Belyuen Municipality of LitchfieldMunicipality 7 369 456 13 000 1 335 444 1 441 591 Municipality of PalmerstonMunicipality 4 591 357 452 263 Tiwi Islands Shire Islands Tiwi Municipality of DarwinMunicipality 17 461 007 Council * Figures have been rounded and discrepancies may occur between totals and the sums of the component items. component of the sums and the totals between occur may and discrepancies been rounded have * Figures Annual Report 28 SCHEDULE 7 Assessed revenue 2009-10

Domestic Garbage General Parking Total assessed waste other rates Shire rates restricted Interest revenue Council ($) ($) ($) ($) ($) ($) ($) Municipality of Darwin 4 788 399 0 42 127 337 0 3 741 821 2 039 373 52 696 929 Tiwi Islands Shire 156 999 0 0 353 322 0 228 501 738 821 Municipality of Palmerston 1 867 269 0 9 589 725 0 0 1 151 114 12 608 108 Municipality of Litchfield 1 202 749 0 12 883 568 0 0 646 375 14 732 692 Belyuen Shire 12 939 0 0 29 118 0 1 430 43 487 Coomalie Shire 81 904 0 0 184 324 0 33 354 299 582 Wagait Shire 20 368 0 0 45 837 0 15 439 81 644 West Arnhem Shire 427 970 0 0 963 136 0 92 149 1 483 255 East Arnhem Shire 624 528 0 0 1 405 484 0 317 215 2 347 227 Victoria Daly Shire 435 337 0 0 979 715 0 647 193 2 062 245 Municipality of Katherine 626 014 0 1 360 921 0 0 686 762 2 673 697 Roper Gulf Shire 436 080 0 0 981 387 0 407 260 1 824 727 Barkly Shire 504 117 0 0 1 134 502 0 127 203 1 765 822 Municipality of Alice Springs 1 733 920 1 969 148 10 741 555 0 0 1 216 909 15 661 532 Central Desert Shire 298 520 0 0 671 813 0 459 012 1 429 345 MacDonnell Shire 449 266 0 0 1 011 063 0 543 213 2 003 542 Total $13 666 379 $1 969 148 $76 703 106 $7 759 701 $3 741 821 $8 612 502 $112 452 657 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items. Annual Report 29 NORTHERN TERRITORY GRANTS COMMISSION SCHEDULE 8 Summary standardised revenue

Assessed 2010-11 Total NT average Roads to 2010-11 2010-11 standardised revenue Recovery Library grant Roads grant Budget term revenue Council ($) ($) ($) ($) ($) ($) Municipality of Darwin 52 696 929 0 1 324 874 1 775 233 45 175 887 100 972 923 Tiwi Islands Shire 738 821 156 094 56 741 808 341 1 481 196 3 241 193 Municipality of Palmerston 12 608 108 0 512 997 652 528 17 616 651 31 390 284

Municipality of Litchfield 14 732 692 412 221 0 2 224 817 11 347 268 28 716 997 Belyuen Shire 43 487 5 807 0 30 072 122 070 201 436 Coomalie Shire 299 582 68 783 45 595 376 280 772 722 1 562 962 Wagait Shire 81 644 9 876 0 51 144 192 158 334 822 West Arnhem Shire 1 483 255 201 972 87 138 1 062 189 4 037 660 6 872 214 East Arnhem Shire 2 347 227 181 109 192 514 1 029 324 5 892 075 9 642 250 Victoria Daly Shire 2 062 245 269 348 135 773 1 400 884 4 107 164 7 975 415 Municipality of Katherine 2 673 697 111 850 228 281 559 642 5 906 093 9 479 563 Roper Gulf Shire 1 824 727 169 791 146 918 870 783 4 114 173 7 126 392 Barkly Shire 1 765 822 84 463 162 117 437 399 4 756 064 7 205 865 Municipality of Alice Springs 15 661 532 170 807 516 570 884 615 16 358 569 33 592 092 Central Desert Shire 1 429 345 151 580 79 032 791 019 2 816 375 5 267 351 MacDonnell Shire 2 003 542 143 580 34 450 743 539 4 238 580 7 163 691 Total $112 452 657 $2 137 281 $3 523 000 $13 697 809 $128 934 704 $260 745 451 * Figures have been rounded and discrepancies may occur between totals and the sums of the component items. Annual Report 30 SCHEDULE 9 Standardised expenditure

($) 288 511 304 088 Total 4 432 523 4 432 1 500 954 14 339 311 14 339 14 510 587 14 510 17 744 476 11 707 884 11 707 15 138 504 15 138 10 006 371 67 320 025 320 67 13 789 665 30 388 176 30 388 10 206 976 22 023 000 22 023 27 04427 399 expenditure expenditure standardised standardised ($) Social Social protection protection ($) Education Education ($) religion religion Recreation, Recreation, culture and culture ($) Health Health ($) amenities amenities community community Housing and Housing ($) protection protection Environmental Environmental

($) affairs Economic Economic ($) and safety and safety Public order order Public ($) 125 435 11 844 24 966 12 557 49 462 2 362 44 063 7 309 10 513 582 363 74 672 128 147 50 496 311 851 14 891 226 171 46 082 66 281 143 430 15 817 15 860 7 977 66 057 3 154 27 991 9 761 14 040 public public General General services 4 879 652 953 858 1 236 523 276 983 3 983 565 190 216 2 182 389 588 653 846 665 3 275 769 627 999 804 955 184 045 2 622 691 125 234 1 420 697 387 556 557 426 4 939 153 857 713 1 152 982 310 800 3 582 034 171 043 2 034 944 529 318 761 324 4 712 015 910 661 1 180 488 268 853 3 803 161 181 602 2 083 491 561 994 808 322 4 582 123 852 515 1 111 589 268 395 3 560 326 170 006 1 961 889 526 110 756 710 6 888 129 1 407 920 1 831 047 385 036 5 879 847 280 764 3 231 690 868 867 1 249 700 4 336 857 682 241 872 735 263 854 2 849 219 136 051 1 540 325 421 030 605 572 1 731 592 257 279 301 615 96 793 1 074 465 51 306 532 332 158 774 228 366 $101 507 226 507 $101 206 108 $13 $21 681 793 641 $8 425 194 152 $55 531 $2 633 080 $38 267 856 $8 149 $11 722 022 451 $260 745 herine 4 451 135 459 951 797 567 385 952 1 920 878 91 722 1 407 659 283 849 408 263 at K Total Total MacDonnell Shire MacDonnell Central Desert Shire Central Municipality of Alice SpringsAlice of Municipality 12 619 886 1 448 910 2 434 107 1 069 002 6 051 033 288 938 4 296 054 894 163 1 286 084 Barkly Shire Barkly Roper Gulf Shire Gulf Roper Municipality of Municipality Victoria Daly Shire Daly Victoria East Arnhem Arnhem Shire East West Arnhem Arnhem Shire West Wagait Shire Wagait Coomalie Shire Coomalie Belyuen Shire Belyuen Municipality of LitchfieldMunicipality 7 205 131 768 579 1 631 017 741 523 3 209 790 153 268 2 878 648 474 312 682 207 Municipality of PalmerstonMunicipality 11 813 228 1 126 606 2 288 809 1 151 215 4 705 005 224 665 4 039 612 695 260 1 000 Tiwi Islands Shire Islands Tiwi Municipality of DarwinMunicipality 29 221 329 2 749 541 5 869 388 2 952 159 11 482 809 548 307 10 359 123 1 696 818 2 440 551 Council * Figures have been rounded and discrepancies may occur between totals and the sums of the component items. component of the sums and the totals between occur may and discrepancies been rounded have * Figures Annual Report 31 NORTHERN TERRITORY GRANTS COMMISSION SCHEDULE 10 National share of financial assistance grants 2011-12

General Local road purpose Share component Share Total Share State/Territory ($) % ($) % ($) % NSW 483 817 689 32.36% 192 499 113 29.01% 676 316 802 31.33% Vic 371 730 998 24.86% 136 787 529 20.62% 508 518 527 23.56% Qld 302 468 218 20.23% 124 313 618 18.74% 426 781 836 19.77% WA 153 906 556 10.29% 101 448 513 15.29% 255 355 069 11.83%

SA 109 997 810 7.36% 36 463 239 5.50% 146 461 049 6.78% Tas 33 945 908 2.27% 35 160 252 5.30% 69 106 160 3.20% NT 15 332 751 1.03% 15 542 123 2.34% 30 874 874 1.43% ACT 24 056 916 1.61% 21 275 077 3.21% 45 331 993 2.10% Total $1 495 256 846 100% $663 489 464 100% $2 158 746 310 100% * Figures have been rounded and discrepancies may occur between totals and the sums of the component items. Annual Report 32 SCHEDULE 11 Visits to local governing bodies

Council Service delivery centre 2010-11 2009-10 2008-09 2007-08 Darwin City Council Darwin 27 Jun 08 Tiwi Islands Shire Council Nguiu 15 Oct 09 Pirlangimpi 14 Oct 09 Milikapiti 14 Oct 09 Ranku 15 Oct 09 Palmerston Belyuen Community Government Council Belyuen 08 Mar 11 Coomalie Community Government Council Coomalie 09 Mar 11 Wagait Shire Council Wagait/Cox Peninsula 08 Mar 11 Litchfield Council Litchfield 09 Mar 11 West Arnhem Shire Council Shire Office (Jabiru) 22 Sep 10 Maningrida 22 Sep 10 Gunbalanya 20 Sep 10 Minjilang 21 Sep 10 Warruwi 21 Sep 10 East Arnhem Shire Council Shire Office () 10 Aug 09 Galiwinku 13 Aug 09 Gapuwiyak 14 Aug 09 Gunyangara (Marngarr) 14 Aug 09 Milyakburra 12 Aug 09 Milingimbi 13 Aug 09 Ramingining 12 Aug 09 Yirrkala 10 Aug 09 Umbakumba 11 Aug 09 Angurugu 11 Aug 09 Victoria Daly Shire Council Daly River 25 Nov 08 Palumpa 26 Nov 08 Peppimenarti 26 Nov 08 Wadeye 27 Nov 08 Daguragu/Kalkarindji 04 Mar 09 Timber Creek 04 Mar 09 Yarralin 05 Mar 09 Pine Creek 06 Mar 09 Katherine Town Council Katherine 24 May 10 23 Aug 08 Binjari Annual Report 33 NORTHERN TERRITORY GRANTS COMMISSION SCHEDULE 11 cont. Visits to local governing bodies

Council/Shire Service delivery centre 2010-11 2009-10 2008-09 2007-08 Roper Gulf Shire Council Shire Office (Katherine) 28 May 10 Borroloola Numbulwar 27 May 10 Barunga 25 May 10 Wugularr (Beswick) 25 May 10

Bulman 27 May 10 Manyallaluk (Eva Valley) 25 May 10 Ngukurr 27 May 10 Mataranka 26 May 10 Jilkminggan 26 May 10 Barkly Shire Council Shire Office (Tennant Creek) 06 Apr 11 23 Sep 08 Elliott 06 Apr 11 23 Sep 08 Ampilatwatja 05 Apr 11 22 Sep 08 Ali Curung 07 Apr 11 25 Sep 08 Alpurrurulam 24 Sep 08 Arlparra (Utopia) 05 Apr 11 22 Sep 08 Alice Springs Town Council Alice Springs 30 Jun 08 Central Desert Shire Council Nyirripi 22 Apr 09 Lajamanu Yuendumu 22 Apr 09 Willowra Ti-Tree 23 Apr 09 Laramba Engawala Atitjere (Harts Range) 21 Apr 09 Yuelamu 23 Apr 09 MacDonnell Shire Council Shire Office (Alice Springs) 05 Feb 10 Areyonga 04 Feb 10 Haasts Bluff 04 Feb 10 Imanpa 02 Feb 10 Docker River 03 Feb 10 Hermannsburg Papunya 04 Feb 10 Kintore 03 Feb 10 Wallace Rockhole Amoonguna 01 Feb 10 Finke 02 Feb 10 Santa Teresa 02 Feb 10 Titjikala 01 Feb 10 Mount Liebig Mutitjulu 03 Feb 10 Annual Report 34 SCHEDULE 11 cont. Public hearings to councils

Council 2010-11 2009-10 2008-09 2007-08 Alice Springs Town Council 30 Jun 08 Darwin City Council 27 Jun 08 Katherine Town Council 24 May 10 23 Aug 08 Litchfield Council 09 Mar 11 City of Palmerston Annual Report 35 NORTHERN TERRITORY GRANTS COMMISSION SCHEDULE 12 Councils that failed to lodge 2009-10 annual financial statements by the date specified

Barkly Shire Council Belyuen Community Government Council Roper Gulf Shire Council Tiwi Islands Shire Council Victoria Daly Shire Council Wagait Shire Council

Appendices Annual Report 37 NORTHERN TERRITORY GRANTS COMMISSION APPENDIX A National principles for the allocation of general purpose and local road grants

A. The national principles relating to the allocation of B. The national principle relating to the allocation of general purpose grants payable under section 6 of the amounts payable under Section 12 of the Act the Local Government (Financial Assistance) Act 1995 (the identified road component of the financial assistance (the Act) among local governing bodies are as follows: grants) among local governing bodies is as follows: 1. Horizontal equalisation 1. Identified road component General purpose grants will be allocated to all local The identified road component of the Financial governing bodies, as far as practicable, on a full Assistance Grants should be allocated to local

horizontal equalisation basis as defined by the Act. governing bodies as far as practicable on the basis This is a basis that ensures that each local governing of the relative needs of each local governing body body in the state/territory is able to function, by for roads expenditure and to preserve its road assets. reasonable effort, at a standard not lower than the In assessing road needs, relevant considerations average standard of other local governing bodies in the include length, type and usage of roads in each state. It takes account of differences in the expenditure local governing area. required by those local governing bodies in the performance of their functions and in the capacity of those local governing bodies to raise revenue. 2. Effort neutrality An effort or policy neutral approach will be used in assessing the expenditure requirement and revenue raising capacity of each local governing body. This means, as far as possible, policies of individual local governing bodies, in terms of expenditure and revenue effort, will not affect the grant determination. 3. Minimum grant The minimum general purpose grant allocation for a local governing body in a year will not be less than the amount which the local governing body would be eligible to receive if 30 per cent of the total amount of general purpose grants to which the state/territory is entitled, under section 9 of the Act in respect of the year, was allocated among local governing bodies in the state/territory on a per capita basis. 4. Other grant support Other relevant grant support provided to local governing bodies to meet any of the expenditure needs assessed should be taken into account using an inclusion approach. 5. Aboriginals and Torres Strait Islanders Financial assistance shall be allocated to councils in a way which recognises the needs of Aboriginals and Torres Strait Islanders within their boundaries. 6. Council amalgamation Where two or more local governing bodies are amalgamated into a single body, the general purpose grant provided to the new body for each of the four years following amalgamation should be the total of the amounts that would have been provided to the former bodies in each of those years, if they had remained separate entities. Annual Report 38 APPENDIX B Methodology and formula factors

Methodology The Commission considers that, given unique circumstances Introduction within the Territory, this overall revenue raising capacity approach provides a reasonable indication of a council’s The Northern Territory Grants Commission’s methodology revenue raising capacity. conforms to the requirement for horizontal equalisation as set out in section 6 (3) of the Commonwealth Local Government For the 2011-12 allocations, financial data in respect of the (Financial Assistance) Act 1995. 2009-10 financial year was used. The Commission, in assessing relative need for allocating general Expenditure needs purpose funding, uses the balanced budget approach The assessment of standard expenditure is based on the to horizontal equalisation based on the formula: Territory average per capita expenditure within the expenditure As sessed expenditure need – assessed revenue capacity categories to which cost adjustors reflecting the assessed = assessed equalisation requirement disadvantage of each local government are applied. The methodology calculates standards by applying cost adjustors The Commission currently uses nine expenditure categories in and average weightings to assess each local government’s accordance with the ABS Local Government Purpose Classifications. revenue raising capacity and expenditure need. The assessment is the Commission’s measure of each local government’s ability Cost adjustors to function at the average standard in accordance with the national principles. Details regarding the national principles The Commission uses cost adjustors to reflect a local are at Appendix A. government’s demographics, geographical location, external access and the area over which it is required to provide local Population government services. All these influence the cost of service delivery. The cost adjustors used by the Commission for For the 2008-09 allocations the Commission resolved to use 2010-11 are shown at Schedule 2. There are three cost the latest ABS usual resident population figures and then adjustors – location, dispersion and Aboriginality. adjusts the figures for estimated residency to align with the population total advised to Canberra from Northern Territory Minimum grants Treasury. The Northern Territory’s funding is based on this total population figure. The same rationale was used for For most local governments, the assessed expenditure needs the 2011-12 calculations. exceed the assessed revenue capacity, meaning there is an assessed need. In six cases, assessed revenue capacity is Revenue raising capacity greater than assessed expenditure need, meaning that there is no assessed need. However, as the Commonwealth As the ownership of the land on which many communities legislation requires that local governments cannot get less are located is vested in Land Trusts established pursuant to the than 30 per cent of what they would have been allocated Commonwealth Aboriginal Lands Rights (Northern Territory) had the funding been distributed solely on the basis of Act 1976, it is not, for all intents and purposes, feasible to use a population, six local government councils still receive land valuation system solely as the means for assessing revenue a grant, or what is referred to as the minimum grant. raising capacity. The collection of actual accurate financial data through the Commission’s annual returns enabled a number of revenue categories to be introduced, including rates where applicable, domestic waste, poll tax and interest. In addition, to accord with the national principles, other grant support to local governing bodies by way of the Roads to Recovery, library and local roads grants is recognised in the methodology. In the case of recipients of the Roads to Recovery grants, 50 per cent of the grant was included. Recipients of library grants and local roads grants have the total amount of the grant included. Annual Report 39 NORTHERN TERRITORY GRANTS COMMISSION

Formula 1. Revenue component

All councils:

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

Where:

Revenue category = Domestic waste, garbage, general rates, general rates other, special rates parking, special rates other, fines and interest Domestic waste = Per capita Garbage other = Actual General rates = Average rate Service charge = Per capita Interest = Actual State income by revenue category 2009-10 = Actual state local government gross income Actual state local government gross income 2009-10 = $131 810 747 Other grant support = Roads to Recovery Grant 2010-11 (50%), Library Grant 2010-11 + Roads Grant 2010-11 Budget term Population x per capita amount Total local government revenue for 2011-12 allocations = $260 745 541

2. Expenditure components Total local government expenditure of $260 745 451 (e) Housing and community amenities ($55 152 194) is apportioned over each expenditure component. Community population/Northern Territory population (a) General public services ($101 507 226) x Housing and Community Amenities expenditure x (location + dispersion + Aboriginality) Community population/Northern Territory population x general public services expenditure (f) Health ($2 633 531) x Aboriginality Community population/Northern Territory population (b) Public order and safety ($13 206 108) x health expenditure x (location + dispersion + Aboriginality) Community population/Northern Territory population x public order and safety expenditure (g) Recreation, culture and religion ($38 267 080) x (location + dispersion + Aboriginality) Community population/Northern Territory population (c) Economic affairs ($21 681 793) x recreation, culture and religion expenditure x (location + dispersion) Community population/Northern Territory population x economic affairs expenditure (h) Education ($8 149 856) x (location + dispersion) Community population/Northern Territory population (d) Environmental protection ($8 425 641) x education expenditure x (location + dispersion + Aboriginality) Community population/Northern Territory population x environmental protection expenditure (i) Social protection ($11 722 022) Community population/Northern Territory population x social protection expenditure x (location + dispersion + Aboriginality) Annual Report 40

3) Local road grant funding To determine the local road grant, the Commission applies a weighting to each council by road length and surface type. These weightings are:

Road Type Weighting Kerbed and sealed 10.0 Sealed 8.0 Gravel 4.0 Cycle path 2.0 Formed 1.0 Unformed 0.4

Application of cost adjustors

Expenditure Category Population Location Dispersion Aboriginality Housing and community amenities Public order and safety Environmental protection General public services Social protection Education Health Recreation, cultural and religion Economic affairs (Shaded areas indicate when cost adjustor applies) Annual Report 41 NORTHERN TERRITORY GRANTS COMMISSION APPENDIX C The Australian Classification of Local Government (ACLG)

Step 1 Step 2 Step 3 Identifiers Category URBAN (U) Capital City (CC) UCC Population more than 20 000 Metropolitan developed (D) Small (S) Up to 30 000 UDS Medium (M) 30 001-70 000 UDM Part of an urban centre of more Large (L) 70 001-120 000 UDL than 1 000 000 or population Very Large (V) more than 120 000 UDV density more than 600/sq km Or

Population density more than Regional Towns/City (R) Small (S) Up to 30 000 URS 30 persons per sq km Medium (M) 30 001-70 000 URM Part of an urban centre with Large (L) 70 001-120 000 URL population less than 1 000 000 Very Large (V) more than 120 000 URV and predominantly urban in nature Or 90% or more of LGA Fringe (F) Small (S) Up to 30 000 UFS population is urban Medium (M) 30 001-70 000 UFM A developing LGA on the Large (L) 70 001-120 000 UFL margin of a developed or Very Large (V) more than 120 000 UFV regional urban centre RURAL (R) An LGA with population less Significant growth (SG) Not applicable RSG than 20 000 Average annual population growth more than 3%, population more than 5 000 and not remote And Population density less than Agricultural (A) Small (S) Up to 2 000 RAS 30 persons per sq km Medium (M) 2 001-5 000 RAM Large (L) 5 001-10 000 RAL Very Large (V) 10 001-20 000 RAV And Less than 90% of LGA Remote (T) Extra Small (X) Up to 400 RTX population is urban Small (S) 401-1 000 RTS Medium (M) 1 001-3 000 RTM Large (L) 3 001-20 000 RTL Annual Report 42 APPENDIX D Northern Territory local governments by classification

ACLG Council Classification Barkly Shire Council RTL Belyuen Shire Council RTX Central Desert Shire Council RTL Coomalie Shire Council RTM City of Palmerston UFS East Arnhem Shire Council RTL Litchfield Council RAV MacDonnell Shire Council RTL Alice Springs Town Council URS Darwin City Council UCC Katherine Town Council URS Roper Gulf Shire Council RTL Tiwi Islands Shire Council RTM Victoria Daly Shire Council RTL Wagait Shire Council RTX West Arnhem Shire Council RTL Annual Report 43 NORTHERN TERRITORY GRANTS COMMISSION APPENDIX E Northern Territory map of shire areas

Tiwi Islands Shire

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

Katherine Municipality

Roper Gulf Shire

Victoria - Daly Shire

Barkly Shire

Central Desert Shire

MacDonnell Shire Municipality of Alice Springs Annual Report 44 APPENDIX F Independent Auditor’s Report to the Minister for Local Government Northern Territory Grants Commission Year Ended 30 June 2011

I have audited the accompanying financial report of Northern procedures that are appropriate in the circumstances, Territory Grants Commission, which comprises the income but not for the purpose of expressing an opinion on the statement, balance sheet, and accompanying notes to the effectiveness of the entity’s internal control. An audit also financial statements for the year ended 30 June 2011. includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made The Accountable Officer’s responsibility for the by the Accountable Officer, as well as evaluating the overall Financial Report presentation of the financial report. The Accountable Officer of the Northern Territory Grants Commission I believe that the audit evidence I have obtained is sufficient is responsible for the preparation and fair presentation of and appropriate to provide a basis for my audit opinion. the financial report in accordance with Australian Accounting Standards and the Financial Management Act, and for such Opinion internal controls as management determines is necessary to In my opinion the financial report presents fairly, in all material enable the preparation of the financial report that is free respects, the financial position of the Northern Territory Grants from material misstatement, whether due to fraud or error. Commission as of 30 June 2011, and of its financial performance Auditor’s Responsibility for the year then ended in accordance with Australian Accounting Standards and the Financial Management Act. My responsibility is to express an opinion on the financial report based on my audit. I conducted my audit in accordance with Australian Auditing Standards. Those standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. F McGuiness Auditor-General for the Northern Territory An audit involves performing procedures to obtain audit Darwin, Northern Territory evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s 14 October 2011 judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit Annual Report 45 NORTHERN TERRITORY GRANTS COMMISSION NORTHERN TERRITORY GRANTS COMMISSION Balance sheet as at 30 June 2011 The financial statements are based on proper accounts and records and are in agreement with the accounts and 2010 2011 ($) ($) have been properly drawn up so as to present fairly the transactions of the Northern Territory Grants Commission Assets Nil Nil for the reporting year ended 30 June 2011 and its Liabilities Nil Nil financial position at that date. (ii) The accompanying balance sheet presents fairly the Northern Territory Grants Commission’s state of affairs Income statement for the year ended 30 June 2011 at the end of the reporting year; and Income Nil Nil (iii) The financial statements are in accordance with Expenditure Nil Nil

applicable accounting standards.

Notes to and forming part of the financial statements are attached. Statement by accountable officer Peter Thornton In my opinion: Accountable Officer (i) The accompanying income statement presents fairly 12 October 2011 Northern Territory Grants Commission’s transactions for the reporting year ended 30 June 2011.

Notes to and forming part of the financial statements 3. The costs of operation of the Commission, which are for the year ended 30 June 2011. met from the funds appropriated to the Department of Housing, Local Government and Regional Services, were 1. The Commission was established under the provision of $209 824.75 (2009-10: $183 697.47). An allowance the Local Government Grants Commission Act, which has been made for the salary cost of administrative came into operation on 1 July 1986, in order to comply support provided by the Department of Housing, with the requirements of the then Local Government Local Government and Regional Services. (Financial Assistance) Act 1986. 4. The Commission did not acquire any assets during 2. The Commission’s activity is to make recommendations the period covered by the financial statements. to the Minister for Local Government, in respect of the amounts of money to be allocated to local governing bodies from the money provided to the Territory under the Commonwealth’s Local Government (Financial Assistance) Act 1995. Funds for this purpose were appropriated to the Northern Territory Department of Housing, Local Government and Regional Services. Allocations of general purpose grants and road grants recommended for distribution were:

Recommendation for Less advance payment of Total recommendation Recommendation for distribution in 2010-11 2011-12 paid in 2010-11 for 2011-12 distribution in 2010-11 General Purpose Grants 15 332 751 3 817 631 11 515 120 14 833 353 Road Grants 15 542 123 3 863 110 11 679 013 14 993 953 Total $30 874 874 $7 680 741 $23 194 133 $29 827 306 The painting depicts the role of the Grants Commission as a transmitter of information, policy and funding recommendations. In the painting the members of the Grants Commission are depicted by the larger black horseshoe shapes. They are sitting facing the members of Local Government Councils, represented by the smaller black horseshoes in the north, south, east and west directions. As can be seen the Grants Commission role is represented by two larger horseshoe shapes joined together. This representation shows the Grants Commission facing Councillors on the one hand, and the Northern Territory and Federal Governments (the centre circle with the white horseshoe shape) on the other. The smaller oblong shapes between the Commission and the Governments are provided by the artist to show the movement of the Commission visiting Councils and taking reports back to central government. The larger oblong shapes between the Council groupings represent two areas of land. The upper ones depict native title area boundaries, and the lower ones depict Local Government area boundaries. The background is the ‘country’ within which all of these events take place. Painting by Cr. Francis Kelly, Past Member of NT Grants Commission Account above is based on a conversation with Cr. Kelly