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Victoria Grants Commission Annual Report 1984 Victoria

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Victoria Grants Commission Annual Report 1984 Victoria VICTORIA GRANTS COMMISSION ANNUAL REPORT 1984 VICTORIA Annual Report of the VICTORIA GRANTS COMMISSION for the Year ended 31 August 1984 Ordered by the Legislative Assembly to be printed MELBOURNE F D ATKINSON GOVERNMENT PRINTER ......1985 No. 13 VICTORIA GRANTS COMMISSION ANNUAL REPORT 1984 The Hon. F. N. Wilkes. MP., Minister {or Local Govemmen( 480 Colfins Stree( MELBOURNE VIC 3000. As Members appointed under section 3 of the Victoria Grants Commission Act 1976, we have the honour to present the eighth Annual Report of the Victoria Grants Commission, in accordance with section 17 of that Act D. V. MOYE, Chairman L F. CHEFFERS, Member J. M. WALTON, Member W.A Phillips Secretary November, 1984 VICTORIA GRANTS COMMISSION MEMBERS D V Moye, B.Ec., H.D.A (Hons), Chairman L. F. Cheffers, L.G.E., M.I.E.Aust, F.I.M.A., M.B.S. The Hon. J. M. Walton SECRETARY W. A. Phillips, B.Bus, B.Sc (Hons), Grad. Dipl. D.P., Ph.D. TABLE OF CONTENTS Page No. INTRODUCTION . vii CHAPTER 1. THE YEAR'S ACTIVITIES I Inspections ................................................. 1 Annual Return of Information ................................ 2 Submissions ................................................ 3 Comparisons between Years .................................. 3 Conference of State Grants Commissions ...................... 5 Committee of Inquiry into Local Government Finance .......... 5 Federal Government Policies ................................. 6 Computer Facilities .......................................... 6 2. THE BASES OF THE DETERMINATIONS . 7 As-of-Right Entitlement . 8 Equalistion . 8 Revenue Raising Needs . 9 Expenditure Needs and Disabilities . 11 Determining the Individual Allocations . 15 Natural Disasters . 16 Acknowledgements . 16 APPENDICES I Transmittal Memorandum and Determinations . 17 11 Municipalities Inspected . 25 Ill Categories of Municipalities . 26 IV Formulae . 28 V Distribution of Rateable Property, Rate Income, Rating and Population 1975-76 to 1982-83 ....................... 33 VI Tax Sharing Funds for Local Government Authorities 1974-75 to 1984-85 ............................................. 35 V INTRODUCTION The primary role of the Commission is to determine the allocation to municipalities in Victoria of grants from the Commonwealth to the State for local government authorities under the provisions of the Commonwealth's Local Govemment(Personal Income Tax Sharing) Act 1976. The Victoria Grants Commission Act 1976 was proclaimed on 9 February 1977 and the Commission, consisting of a full-time 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) Act 1976. Section 12 of the Victoria Grants Commission Act 1976 requires the Commission, on or before 31 August each year, to determine the amount of general revenue grants to be allocated to each municipality in that year. The Commission's determination for the 1984-85 financial year was transmitted to the Minister for Local Government on 31 August 1984. 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 31st August This Report is in compliance with that requirement Vll Chapter 1 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 to municipalities in Victoria ofgeneral revenue 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 and under the Victoria Grants Commission Act 1976 which complements it To assist the Commission in this role, the Victoria Grants Commission Act provides that: "10. (l) 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) m the case of a particular municipality on or before such later date as is fLXed 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 carrv out such inspections, 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 "15. 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." 1.2 The Act also provides that the Minister for Local Government may "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 signficance in relation to all or any municipalities in the relevant financial year" (section 14). In so doing, 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 available to the public. No submission has been made under this provision to date. 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 1984, nor in any previous year. 1.4 The Commission was convened on eighty-four days during the year ended 31 August 1984 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 1984-85 financial year. INSPECTIONS 1.5 Inspections were taken of forty-four municipalities throughout the State during 1983-84; this completed the third round of a five-year programme of inspecting each municipality. 1.6 The aim of the inspections is to cover the range of services being provided by the respective Councils, in order that the Commission might better appreciate the conditions which each Council faces in serving its community. A period is set aside at the end of each inspection for discussion with Councillors and their officers about the role of the Commission and about aspects of municipal functions which are relevant to that role. 1.7 These inspections and discussions have been invaluable to the Commission because of the benefit of a more comprehensive knowledge of the physical characteristics of each municipality and a greater appreciation of the social and environmental aspects of the respective areas which have influenced Councils' expenditure policies. This is important in distinguishing between costs which are related to needs and disabilities and costs which reflect Councils' policy decisions. 1.8 The flexibility available in inspection programming as a result of the shift to a five-year framework has enabled the Commission to devote more time to areas where special circumstances prevail Examples of this are the visit to the Portland area in 1981-82 to assess the impact of the Alcoa project on the Portland Town and Portland Shire Councils and the visit to the Bright and Mansfield Shires in 1983 to assess the impact of the major snow resort areas on the activities of the two Councils. In addition, the Commission has been able to pro~ram its inspections to include visits to areas that experience heavy pressure on facilities due to the influx of visitors during the summer holiday period. Several municipalities adjoining the Murray River and Port Phillip Bay were inspected during January-February 1984. ANNUAL RETURN OF INFORMATION 1.9 As indicated in paragraph 1.1, section 10 of the Victoria Grants Commission Act 1976 authonses the Commission to require each municipality to provide prescribed information on or before a date fixed by the Commission. In conformity with that section, 5 December 1983 was the date fixed by notice in the Victoria Government Gazette No. 100 of 5 October 1983, as the date by which the prescribed information for the financial year ended 30 September 1983 should be returned to the Commission. 1.10 The Commission has worked closely with the Victorian office of the Australian Bureau of Statistics on the continuing development of the joint Return of statistical and other information which serves the needs of the Commission and the Bureau. The Return has been devised to conform with the standardised form of recording local government financial statistics and with the new regulations for local ~overnment accounting for all municipalities in respect of the 1982-83 munictpal year, which is also aligned to the standardised format The statistics derived from the Annual Returns are published by the Australian Bureau of Statistics in its Bulletin ''Local Government Finance - Victoria" (Catalogue No. 5501.2), which provides detailed
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