Annual Report 2018-2019

2018- 2019 - sa council s-

PART - of your - EVERY DAY.

Table of contents page

LGA member councils 1

2018-19 highlights 2

President’s report 4

CEO’s report 5

About the LGA 6

Strategic planning framework 7

Values and behaviours 8

Key priorities and day to day work 9

Key achievements against 2018-19 priorities 10 LGA Board 16 Nominees to local government\and external bodies68 16 Abridged financial statements 20 Councils Appendix 1 - Local Government Research and Development Scheme Projects 26

District Council of KIMBA EST. 1924

Port Pirie Regional Council

SOUTHERN MALLEE DISTRICT COUNCIL

1 highlights 2018-2019

Delivered an average of $2.1 million in value for each member council, Secured support from independently validated by SA Labor, SA-BEST and UHY Haines Norton. Greens SA to protect local services and decision making and oppose rate capping legislation introduced into Parliament.

Continued the transformation of LGA Procurement with growth surpassing long-term targets. Implemented recommendations of the LGA Schemes Review, including the establishment of LGASA Mutual as a subsidiary body responsible for the LGAWCS and Completed the LGA’s LGAMLS. Governance Review with implementation of new Constitution and establishment of SAROC, GAROC and CEO’s Advisory Committee.

Providing unique cover and risk services

2 Worked with councils to run a highly successful 2018 council elections campaign that saw increases in the number of nominations and diversity of candidates.

Launched LGASA Commercial with service offerings covering legal advice, energy audits, recruitment, travel booking, and media training. Worked with members to develop a comprehensive local government reform agenda, Innovating with outlining opportunities to councils to benefit increase efficiency and our communities transparency.

Provided extensive support to member councils to assist with the implementation of the Planning, Development and Infrastructure Act and continued to advocate Established a new for planning policies and Elected Member processes that involve Leadership Program to local communities. support the leadership capacity of the sector.

3 President’s report

Throughout 2018-19 the issue of local government reform was a common theme, with conversations taking place on talkback radio, in council chambers, and in the State Parliament. South Australian councils welcome sensible reform and want to work in partnership with the Parliament to deliver meaningful change. However, it’s vital that any proposed changes are based on strong evidence, and will benefit our communities. Throughout the year the LGA worked with members to further develop a comprehensive local government reform agenda, outlining opportunities to boost productivity, increase transparency and drive downward pressure on rates. In early 2019 the Government launched a local government reform program, and the LGA will work closely with councils and all stakeholders throughout this process to ensure that the impacts of any proposed changes are well understood. In November we saw a significant influx of new mayors and councillors after the 2018 council elections. The LGA worked with members to run a highly successful campaign that drove an increase in the number and diversity of nominations, and resulted in a record number of women elected to SA councils. Following these elections, the LGA launched a new Elected Member Leadership Program to support the leadership capacity of the sector, and provide both new and ongoing council members with the tools necessary for success. As an Association we are continuing to investigate opportunities to improve our governance, and value provided to members. The LGA’s Governance Review was completed with the implementation of a new Constitution, and establishment of new SAROC and GAROC committees. The LGA Board also implemented the recommendations of the LGA Schemes Review, including the establishment of LGASA Mutual as a subsidiary body responsible for the LGAWCS and LGAMLS. We will continue to look for opportunities to improve the value and effectiveness of the LGA in 2019-20, and support the continued improvement of local government in .

Mayor Sam Telfer LGA President

4 CEO’s report

Over the past twelve months the LGA has continued to build on the breadth and value of services it provides to members, with the goal of saving councils – and their ratepayers – money. Across the sector, the value provided by the LGA has been independently verified as being worth $141.7 million, and for the first time all member councils were provided with individually tailored value propositions in early 2019. The establishment of LGASA Commercial has significantly expanded the scope of services provided to members, with the launch of LGASA Legal soon followed by new travel, energy, media training and recruitment services. These offerings will continue to expand in 2019-20, with an emphasis on new and expanded HR services to the sector. The continued transformation of LGA Procurement into a sustainable and self-sufficient operation is also delivering real savings, with several councils now using the highly experienced LGA Procurement team for all their procurement requirements. A core function of the LGA is working with councils to increase their capacity, and identify opportunities for improvement and better efficiencies. This year more than 550 staff from all 68 councils participated in emergency management “health checks” as part of the first phase of the LGA’s Council Ready Program. The outcomes from these workshops will inform the second phase of this program, which will provide practical support to councils with their emergency management planning. Regular workshops were also held with council planning staff, to provide information and representation on the implementation of South Australia’s new planning system. The LGA has continued to advocate on behalf of the sector through a range of channels to ensure that councils and communities have a voice in the new system. China’s National Sword has had a significant impact on council budgets, and we have worked closely with the Government, industry and councils on opportunities to build on our State’s recycling success, and build a true circular economy in South Australia. This has included working with a small group of councils to investigate opportunities to trial procurement targets for the use of recycled materials in council projects, supporting the development of new local markets for these materials. The LGA looks forward to working with its members in 2019-20 to build a stronger, more efficient and effective local government sector, that will deliver even better outcomes for South Australian communities.

Matt Pinnegar LGA CEO 5 The Local Government Association (LGA)

The Local Government Association of South Australia (LGA) is the peak body for local government in SA. It provides leadership and services to councils, and representation to State and Federal governments and other key stakeholders. Membership of the LGA is voluntary, but all 68 of South Australia’s councils are members. The LGA is governed by a Board of Directors that is comprised of elected members from metropolitan and regional councils. This Board receives input on policy issues from the Greater Region Organisation of Councils (GAROC), and South Australian Regional Organisation of Councils (SAROC). The Association also incorporates two separate commercial entities – LGA Procurement and LGASA Mutual – both of which are governed by their own board of directors and provide competitive procurement and insurance services to councils. The LGA provides value to its members through advocating on behalf of the sector, assisting councils in building capacity, and facilitating continuous improvement. Member councils can access a wide range of optional services through their LGA membership, including education and training programs, website hosting, travel bookings, legal advice, energy audits, media training, and recruitment and HR services. Two general meetings each year provide members with an opportunity to raise issues of interest to the sector, and contribute to the development of LGA policy positions. The LGA is a member of the Australian Local Government Association (ALGA), and provides input into national policy issues through this body. As of 30 June 2019 the LGA had 47.3132 FTE staff, which included 20 (19.3 FTE) male employees and 32 (28.0132 FTE) female employees.

6 Strategic planning framework

LGA Board,& SAROC GAROC

At general meetings setting high level policy positions that represent sector-wide views/a vision for the State Advocate

Public

LGA Plans Value

Work Annual (5 - 10 yrs) Assist Business Individual Area Policy manual Plan & Strategic Plan 68 Plans Plans Budget Long Term Financial Plan councils Advance

operational Organisational /

capabilities LGA delivering membership value through Advocate • Assist • Advance

LGA key initiatives

7 LGA values and behaviours V O I C E Value and Optimism Integrity Connectivity Excellence Respect Our Values

I am considerate I always I uphold the I welcome I am a leader of others’ look for the values of opportunities and role priorities and positive the LGA and to engage model through workloads. opportunity, adhere to my with others my actions and I communicate even when workplace and build behaviour. with respect challenged. responsibilities. positive I value everyone and am working equally. relationships. approachable, I am a driver of professional

Our Individual Behaviour constructive and polite. change.

We engage We recognise We are We provide a We empower, with, and have the consistent safe, supportive support and confidence importance in decision and informative encourage our and trust in of a positive making and workplace with staff. the ability and work/life are honest clear and regular judgement of balance. when dealing communication. We lead toward all of our staff. with staff and We commit clear and We provide We recognise stakeholders. to removing inspiring goals regular, the best barriers that and vision. honest and qualities in impact on constructive our staff and effective work Our Organisational Behaviour feedback. harness all practices. abilities.

The value in LGA membership

Advocate: Influencing state and federal government policy, legislation and funding Advocate Assist Assist: Bringing councils together to pursue worthwhile opportunities better together Advance: Assisting with the business of council, its operations and efficiency Advance

8 Key 2018-19 priorities and day to day work

The LGA’s key priorities for 2018-19 were: • Advocate for local government through awareness campaigns and stakeholder relations and influencing policy outcomes • Support the 2018 Council Elections • Position and support local government as a driver of economic development • Support the development of public health and community wellbeing services • Lead and achieve local government reform and respond to change • Advocate for improved sector conduct and building sector morale • Build local government capacity and the skills of our people • Improve the LGA’s governance and implement the Governance Review • Continue with the LGA Procurement transformational program • Expand commercial activities • Implement the Schemes Review

Day to day activities included: • Delivery of training and development to the sector • Monitoring, reviewing & responding to policy, legislation & funding changes that impact local government • Facilitating the delivery of key research projects for the benefit of the sector • Writing reports, attending briefings, keeping local government informed of sector developments and best practice • Participating on committees, working groups and networks where it adds value to our sector • Responding to media and other external parties as the voice of local government • Responding to and assisting councils with frontline advice and commercial services • Maintaining internal controls, risk management, systems of good governance • Leadership, management and the wellbeing of staff

9 Key achievements against 2018-19 priorities

Advocate for Local Government Support the 2018 1 through awareness campaigns 2 Council Elections and stakeholder relations and influencing policy outcomes Council elections campaign Local government awareness campaign The LGA worked with councils to run a successful The LGA’s local government awareness campaign awareness campaign in the lead up to the continued throughout 2018-19 and included three 2018 council elections, with an emphasis on key phases - council elections, council services and encouraging nominations from women and other consultation on annual business plans and budgets. underrepresented groups. This resulted in the This campaign has been informed by feedback highest number of nominations in 20 years, a 20% received through the LGA Members’ Survey and is increase in the number of female candidates, and focused on raising awareness of local government a significant increase in the number of female in the community, including the breadth and value councillors and Mayors elected. This campaign was of council facilities and services, and encouraging nominated as a national award greater engagement and participation in local finalist for Social Change Marketing by the government. The impact of the LGA’s community Australian Marketing Institute. awareness campaigns is regularly monitored Training through community perception research. LGA Training service delivered a strategic approach Stakeholder relations to support the 2018 council elections, with a focus The LGA takes a strategic approach to building on attracting and building the leadership of the relationships with people and organisations with an sector. This included the development of a revised interest in or influence over matters of importance and enhanced Council Members Guide, holding to local government. In 2018-19 the LGA provided twelve “Make a Difference” nominate sessions for regular briefings to key stakeholders and built potential nominees across the State, delivery of post- support for advocacy priorities including opposing election mandatory elected member training, and rate capping, local government reform, road and development of a new Elected Member Leadership infrastructure funding, waste and recycling and program that will support the ongoing professional planning and heritage. development of all elected members. Supplementary Road Funding Elections review The LGA ran a campaign in the lead up to the A post-election evaluation survey of councils about 2019 Federal Election advocating for the extension the resources, campaign materials and support of supplementary road funding for SA beyond provided by the LGA was completed, and the results 2018-19. This resulted in commitments from and associated recommendations will be used both major parties to extend this funding, with to guide the LGA’s planning for the 2022 council a two-year extension to this $20 million per year elections. The LGA also coordinated a sector-wide program announced in the 2019-20 Federal response to the Electoral Commission of South Budget. In addition, SA councils also benefited Australia’s review and statutory report on the conduct from an additional $9 million in road safety funding of the 2018 council elections, and was involved in the announced through this budget. State Government’s review of the Local Government (Elections) Act 1999. Policy manual A revised policy manual was endorsed by members at the LGA’s 2018 Annual General Meeting. This manual was updated and expanded from a printed document to an online and searchable resource that outlines the LGA’s policies on a wide range of issues relevant to the local government sector. The policy manual will continue to be updated as new policies are adopted by the LGA.

10 Position and support local Support the development of 3 government as a driver of 4 public health and community economic development wellbeing services

Economic development Public health and community wellbeing The LGA continued to support councils to foster a The LGA President and Minister for Health and sustainable local economy that promotes wealth Wellbeing signed a MOU for the support and and job creation. Examples of the Association’s provision of immunisation services, to provide work in this field included the China Engagement greater certainty to councils about the delivery of Strategy, contributions to the State Government’s their existing immunisation services. Regional Visitor Strategy, participation in the The LGA also made submissions on the State Public Government’s Red Tape Reduction Taskforce and Health Plan 2019-2024 and the Parliamentary promotion of the Small Business Commissioner’s Inquiry into the operation of the SA Public Health Small Business Friendly Council Charter program. Act 2011; and commenced two regional trials of Smart Cities the Community Wellbeing Alliance program in partnership with the Southern & Hills LGA and Working with GAROC and metropolitan councils, & LGA. the LGA developed a Smart Cities framework to help councils embed Smart Cities principles in their As part of the Local Government Public Health planning, and administration and operations. This Program, the LGA hosted a workshop to help framework is the first of its kind in Australia and councils gain insights into regional public health will help councils utilise data and technology to planning, and the lessons learnt during the increase their efficiency and effectiveness, improve development and implementation period local amenity and community wellbeing and drive between 2013 and 2018. downward pressure on rates. Waste and recycling Sustainable population growth The LGA provided leadership and support to Recognising the strong link between sustainable councils in response to China’s National Sword population growth and economic development, Policy, which effectively closed this China as a the LGA partnered with the South Australian Centre market for Australia’s recycling. This included for Economic Studies to produce a Population participating in State Government working groups, Policy Report. The LGA also surveyed councils to updating model waste management contract determine both their immediate and future capacity documents, and developing a model “rise and fall for population growth, and the short and long term clause” to help councils renegotiate their recycling investment required to support this growth. contracts. With financial support from Green Industries SA, the Special Local Roads Program LGA worked with councils on a pilot project to trial Through the Local Government Transport Advisory the adoption of procurement targets for the use of Panel, the LGA made recommendations to the recycled materials in council projects. This project is Federal Minister for Local Government and expected to support the development of a circular Territories for projects to be funded by Identified economy in South Australia through creating new Local Road Grants, South Australia’s allocation local markets for recycled materials. The LGA also of Roads to Recovery, and supplementary roads continued to highlight the $8.8 million impact of funding. In 2017/18, grants allocated under the China’s National Sword Policy on South Australian program were valued at $17.7 million. ratepayers, developed an LGA Waste Action Plan, and made a submission to the SA Parliament’s Recycling Inquiry.

11 Planning Development and Infrastructure Coastal management Act Implementation Significant research and engagement was undertaken The LGA worked with DPTI to provide advice and to update coastal adaptation guidelines that support to councils on the transition to the State’s new were originally produced in 2013, with the goal of planning system, while advocating for a stronger role providing councils with tailored, comprehensive and for councils and communities in planning policy and contemporary guidelines that can be utilised for local assessment decisions that impact on their local areas. coastal climate adaptation planning. Support for members included holding regular staff The LGA also supported the development of a SA information sessions on the discussion papers and Coastal Councils Alliance, which aims to raise SA coastal policy documents prepared by DPTI. climate adaptation issues at a national level. All 34 South Advocacy activities included submissions to the State Australian coastal councils have engaged with this Government on behalf of councils on the Accredited project. Professionals Scheme and draft Regulations, Assessment National Disability Insurance Scheme Pathways, Performance Indicators, Natural Resource and Support was provided to the Legatus Group and Environment Discussion Paper, Integrated Movement Community Managers Network to undertake research Discussion Paper, Planning and Design Code Technical analysing the impact on councils of the National Paper, State Planning Policies, and the Parliamentary Disability Insurance Scheme (NDIS). The findings from Inquiry into Heritage. The LGA has two representatives this research were used to develop an NDIS Issues Paper on the Minister’s Liaison Group, and raised issues of that will inform future LGA engagement and advocacy concern directly with the Minister through this forum. activities. The LGA has consistently emphasised that planning reforms need to improve design outcomes and address Disability Inclusion Act 2018 the cumulative impacts of infill development, and The LGA provided support to councils in the preparation there should be no loss or dilution of local heritage of Disability Action and Inclusion Plans (DAIPs) that places, heritage zones and contributory items. The LGA are required under the new Disability Inclusion Act has also highlighted concerns around the potential 2018. Funding was also secured to manage a “Disability costs to councils and ratepayers of complying with Inclusion: Practice and Plans” project that will be new requirements, and highlighted that fees need to implemented in 2019-20. be set at a level that reflects the true cost of providing Ageing strategy planning and building services. With support from the Office for Ageing Well, the LGA Climate Change facilitated an Ageing Well Forum to explore ageing In 2018 the LGA became Core Partners of Climate KIC - a and wellbeing now and into the future. A submission public private partnership comprising governments, was also provided to the Royal Commission into research centres, universities, insurers, and private Aged Care and Quality, highlighting the impact of the financiers. This facilitated the LGA’s involvement in a Commonwealth’s aged care reforms on councils and collaborative Adaptation Finance Project that aims to communities, and calling on the Federal Government demonstrate how the financial sector can invest in to commit to ongoing recurrent funding for their Home climate adaption to deliver commercial returns and Support Program. greater community resilience. Aboriginal Affairs and Reconciliation CWMS LGA staff attended the NAIDOC SA - Family Fun Day at The LGA Community Wastewater Management Scheme Tarntanyangga (Victoria Square) during NAIDOC Week subsidy fund is a partnership between the State to share information about and promote participation in Government, LGA and councils that delivers much the 2018 council elections. needed community wastewater management systems to regional and remote communities. The State Local Government Subsidy Funding Agreement entered its second year of the 10 year, $47M agreement. CWMS projects were at various stages of design, construction and completion throughout the year including the townships of Peterborough, Orroroo, Cowell, Arno Bay and Mallala. Both the Peterborough and Orroroo schemes were jointly funded with the Commonwealth Government through the Building Better Regions Fund State Government subsidy and council funds.

12 Lead and achieve local • advice on committee and corporate structures 5 government reform and available to councils respond to change • advice on council copyright obligations and interactions with record keeping, freedom of information and planning laws Local government reform agenda Working with members the LGA developed a • Council Members’ Guide comprehensive proposal for local government reform. • The LGA also updated a range of existing guidance This document builds on the Local Government Reform materials and templates, and increased its general Agenda developed in 2017 and was provided to all governance advice services, with queries received parties in May 2019. The proposal outlines a range of from councils via email or phone responded to sensible reform opportunities to increase transparency within 24 hours in most cases. and improve efficiency within the sector. Some of the key proposals include implementing a comprehensive online benchmarking system, improving the code Advocate for improved of conduct, standardising audit processes, and local sector conduct and building government elections reform. 6 sector morale In February 2019 the State Government commenced a local government reform program with the goal of introducing a Bill into Parliament in early 2020. The LGA Code of conduct has worked collaboratively with the Government and The LGA continued to advocate for code of conduct councils on this program, and is represented on the reform and participated in a cross-agency working Minister’s Reform Reference Group by the LGA President, group that is looking at legislative reform options. A and by LGA staff on the four working groups established proposal for change has been included in the LGA’s by the Office of Local Government. In June 2019 Local Government Reform Submission and further the LGA also appointed a Local Government Reform consultation on opportunities to strengthen and Partner to lead engagement with councils and other improve the code of conduct for elected members stakeholders on the Government’s reform process. will take place as part of the State Government’s local The State Government’s Productivity Commission government reform program. announced an Inquiry into Local Government Costs and Efficiency in May 2019, and the LGA is represented by Elected Member Leadership Program the CEO on the Inquiry’s Reference Group. LGA Training designed and implemented a new Boundary reform Elected Member Leadership Program to support the leadership capability of the sector. The development of The LGA worked closely with the Government on this program was assisted by focus group discussions boundary reform legislation and guidelines that saw involving representative council CEOs, governance a new process for boundary adjustments introduced, staff and mayors, and included a new leadership and the Local Government Boundaries Commission effectiveness tool - ‘How can you grow your leadership established as the body responsible for assessing and effectiveness?’ A Mayors Leadership Session was held progressing proposals. This legislation came into effect in November 2018 and an Elected Member Leadership on 1 January 2019, and the LGA co-hosted a workshop Session held in February 2019, with on-going courses with the Boundaries Commission in May 2019 to and sessions to be offered throughout the current provide advice and guidance to councils considering council term. boundary adjustment proposals. Member assistance Councils were provided with guidance materials and template documents to assist with implementation of a number of legislative reforms and deal with a range of emerging issues including: • a model policy and procedure for public interest disclosures • employee code of conduct guidelines (gifts and benefits) • model employee conduct policy • social media guide for elected members

13 Build local government capacity Improve and maintain the LGA’s 7 and the skills of our people 8 governance, implement the Governance Review Regional Youth Traineeship Program Round 2 of the Regional Youth Traineeship Program Governance Review concluded in April 2019. This program was a partnership The Governance Review was completed with between the LGA, councils and State Government that the adoption of ancillary documents to the LGA’s provided 120 traineeship positions in regional councils new constitution at the 2018 LGA AGM. The new over two rounds. 80% of round one participants and arrangements under the Constitution and ancillary 90% of round two participants achieved at least one documents created a streamlined Board of Directors Certificate III qualification, and more than 80% of all and formalised the establishment of a new South participants secured ongoing employment. Funding Australian Regional Organisation of Councils (SAROC) through this program was also allocated to support four and Greater Adelaide Region Organisation of Councils “Regional Youth Leadership Forums” that were delivered (GAROC). Both SAROC and GAROC consulted on and in July and August 2019. adopted Strategic and Business Plans during the year to LGA Education & Training guide their efforts and to priorities their actions. A CEO LGA Training commenced a strategic review of the Advisory Committee was also established to provide service in 2018-19 in conjunction with the delivery of advice to the LGA Board on the design and delivery of elected member and council staff training sessions. services for members. During the year 143 courses were delivered to 2,536 Value proposition participants, and 28 councils engaged in the LGA’s An independent review undertaken by UHY Haines Elected Member Mandatory Training Program, with the Norton found that the annual value delivered by the training generally well received. The Mayors and Elected LGA to members is $141.7 million. This equates to an Member Leadership sessions were also well attended average of $2.1 million per council, and is an increase with high levels of engagement and reported value. from $139.4 million in 2018. All members were provided Emergency management with personalised value propositions in early 2019, Support for members around emergency management detailing the value of LGA services and programs significantly increased in 2018-19, with the LGA leading delivered specifically to their council. a major update to Local Government Emergency Management Framework, refining many of the support guidelines and templates for councils, and Continue with the LGA Procurement introducing a monthly emergency management 9 transformational program e-News. The first stage of the “Council Ready” program saw the The transformation of LGA Procurement into a self- LGA work with all 68 councils to facilitate emergency sustaining entity continued in 2018-19, with growth management ‘health checks’ to better understand exceeding targets set out in the Long-Term Financial council strengths in emergency management and the Plan 2017-21. This growth was driven by the launch needs of the sector. More than 550 people from all 68 of a new direct consultancy model for members, councils were involved. Following on from this, the and increased engagement from South Australian LGA secured $2.7M of funding from the Natural Disaster councils. A range of new contracts and panels were Resilience Program and the LGA Mutual Liability Scheme also developed for launch in 2019-20. Following to roll-out Stage 2 of Council Ready. This has seen the the completion of the transformational phase, LGA LGA employ a team of project facilitators who are now Procurement now looks forward to the growth and working with members to strengthen councils’ planning sustainment phase. and documentation around emergency management. The LGA also continues to support councils with emergency management through the i-responda platform and the delivery of emergency management training. In 2018-19 the LGA delivered 63 courses and trained 1,338 council staff in i-responda, bushfire safety, flood hazards and incident management.

14 Expand commercial Implement the 10 activities 11 Schemes Review

LGASA Commercial During 2018-19 the LGA implemented the recommendations from the independent review of LGASA Commercial commenced operations in the LGA Workers Compensation and Mutual Liability September 2019 with the launch of the LGASA Legal Schemes. This included setting up a wholly owned Connect brand. Since then, LGASA Travel, LGASA Energy, subsidiary to manage the Schemes, adopting a LGASA Media Training, and LGASA Recruitment have constitution for the new organisation, appointing an been rolled out as new offerings to the sector. Councils independent Board and CEO, reviewing the existing have embraced the suite of LGASA Commercial services scheme rules, and agreeing on a new contractual with engagement from 52 councils to date. During arrangements with the service provider, as well as a 2018-19 LGASA Recruitment successfully filled 11 number of other governance improvements to enhance CEO/Senior Executive roles. Based on the immediate the performance and operations of the Schemes. success of LGASA Recruitment, a full suite of Human Resources Services will be introduced during 2019-20, The Schemes themselves performed well during the encompassing a HR/IR document library and advisory year, with a record low number of claims in the LGAWCS service, CEO performance reviews, organisational reflective of the investments made by councils in reviews, culture surveys, conflict resolution services, EB providing safe working environments for their staff. This, negotiations support service, and respectful workplace together with several other Scheme initiatives, resulted relationship training. in a reduction of premiums for member councils. The LGAMLS also maintained a positive financial position Electronic Services Program that enabled the Board to provide maintain council Following a public tender, Squiz were appointed to contributions without an increase in 2018-19. develop a new web platform for SA council websites. The roll-out of this new platform commenced with a small group of councils, and will be completed with all participating councils in 2019-20. Squiz matrix is a world class Content Management System (CMS) that will provide a flexible, technically superior and sustainable platform for local government for many years to come. During 2018-19 councils continued to promote and implement the My Local Services app, while the LGA undertook an overhaul of the app’s “Report It” feature to develop a more streamlined process for community members to report issues to councils.

Priorities for 2019-20 Key priorities for the LGA for 2019-20 will include: 2019- • Delivery of the advocacy plan and administration of the SAROC and GAROC business plans • Lead the local government reform program 2020 • Increase community awareness of and participation in local government • Provide resources, forums and training programs that support councils to meet their legislated responsibilities • Build local government capacity and the skills of our people • Build the sector’s emergency services capabilities including the grant-funded Council Ready program and the Functional Support Group (LGFSG) • Successful administration of grant programs • Improve corporate systems that allow the LGA to operate more efficiently • Continue with the LGA Procurement transformation program • Promote and expand the usage of commercial activities • Embed the governance arrangements established through the LGA Constitution adopted by members in October 2018 15 LGA Board as at 30 June 2019 The Local Government Association of South Australia is governed by the LGA Board. Members of the LGA Board of Directors include: • President (elected by all Councils); • Office of the Immediate Past President; • South Australian Regional Organisation of Councils (SAROC) Chair • Greater Adelaide Region Organisation of Councils (GAROC) Chair 2019 • Three Board Directors (elected by SAROC); and • Three Board Directors (elected by GAROC). Listed below are the LGA Board Members as at 30 June 2019.

LGA President Mayor Sam Telfer Tumby Bay Council

Office of the Immediate Vice President Mayor Gillian Aldridge OAM

LGA Audit Committee members as at 30 June 2019 Ms Rosina Hislop, Independent Chair Ms Yvonne Sneddon, Independent Member Ms Pat Christie, Independent Member Mayor Karen Redman, Board Member representative

16 2019

Mayor Karen Redman Mayor Erika Vickery OAM Naracoorte Lucindale Council

Mayor David O’Loughlin Mayor Peter Mattey OAM City of Prospect Regional Council of Goyder

Mayor Kevin Knight Mayor Keith Parkes

Mayor Jan-Claire Wisdom Mayor Clare McLaughlin Council Whyalla City Council

17 Nominees to local government and external bodies The LGA provides representation on numerous nominees on working parties, boards and committees including many State government bodies. Most nominees are council members or staff. Through nominees, the Association is kept abreast of and helps influence change in plans, projects and initiatives. At the same time, local government’s views on policy and proposals for amendments to legislation are also addressed. The LGA thanks all of those who have given their time (in most cases without reward) contributing to these bodies in the interests of local government. Key bodies pursuant to Acts of Parliament and nominees as at 30 June 2019 included:

Adelaide Cemeteries Libraries Board of SA Local Government Authority Ms Lynn Spurling Ministerial Advisory Committee (Planning) Ms Sue Clearihan District Council of Copper Coast Ms Hannah Bateman Cr Jan-Claire Wisdom Country Arts SA Board Ms Shanti Ditter Mayor Erika Vickery Cr Jill Whittaker Naracoorte Lucindale Council Campbelltown City Council Mr Leith McEvoy Coast Protection Board Local Government District Council of Grant Ms Anita Crisp Finance Authority Ms Sally Roberts Spencer Gulf Cities LGA Mr John Comrie Alexandrina Council Coastal Protection Board (nominated by Light Mr Matthew Romaine Local Government Regional Council) Advisory Committee Dr Andrew Johnson Mr Ryan Viney Mr Peter Halton (nominated by Port Pirie Town of Gawler Regional Council) Mr Greg Waller Cr Oanh Nguyen Local Government Research Mount Barker District Council & Development Scheme Mr Chris Zafiropoulis Mr Stephen Smith Advisory Committee City of Salisbury Local Government Association Mayor Gillian Aldridge Local Government Proxy: Ms Victoria Brown City of Salisbury Transport Advisory Panel Local Government Association Ms Alex Hart Office for Local Government Mayor Keith Parkes Dog & Cat Alexandrina Council Mr Henry Inat Management Board (Chairperson) Town of Gawler Cr Gail Kilb Mr Richard Dodson Mayor Kevin Knight City of Tea Tree Gully Cr Janet Loveday (Chairperson) Mr Peter Tsokas Adelaide Hills Council Mr Peter Lamps Mrs Gemma Russell Australian Workers Union Mr Lea Bacon District Council of Yankalilla Local Government Association Mr Matt Pinnegar Mr Rocky Warren Local Government Association Local Roads Advisory Mr Tony Siviour Committee Environment Protection LG Professionals (SA) Cr Michael (Bim) Lange OAM Authority Board Professor John Spoehr The Dr Helen Macdonald Flinders University Clare & Gilbert Valleys Mayor Erika Vickery OAM Mr Mark Withers Naracoorte Lucindale Council City of Port Adelaide Enfield

18 Native Vegetation Council South Australian Public State Emergency Cr John Neal Health Council Management Committee Regional Council of Goyder Cr Sue Whitington Mr Matt Pinnegar Proxy: Ms Penny Morgan City of Norwood Local Government Association Streaky Bay Council Payneham & St Peters Deputy: Ms Pauline Koritsa Mr Gar Mavrinac City of West Torrens Power Line Environment The Barossa Council Committee Stormwater Management Ms Pam Andritsakis South Eastern Water Authority City of Prospect Conservation & Mr Stephen Hains Drainage Board (Presiding Member) Premier’s Climate Change Cr Kay Rasheed Dr Helen Macdonald Council Kingston District Council Clare & Gilbert Valleys Mayor Ann Ferguson OAM Mount Barker District Council State Records Council Ms Heather Merritt South Australian City of Onkaparinga Local Government Grants Commission Statewide Superannuation Mr Bruce Green Pty Ltd Board (Presiding Member) Cr John Woodward Mayor Dave Burgess City of West Torrens Mid Murray Council Mr Matt Pinnegar SA Boating Facility Local Government Association Advisory Committee State Bushfire Cr Jassmine Wood Coordination Committee City of West Torrens Cr Shiralee Reardon SA Meat Food Safety City of Salisbury Advisory Committee Proxy: Cr Heidi Greaves Ms Katie Koto City of Onkaparinga Adelaide Hills Council South Australian Heritage Council Mr David Stevenson Regional Council of Goyder

19 Abridged financial reports

Local Government Association of South Australia 2018-19 Statement of Financial Position As At 30 June 2019 The following pages contain abridged financial Note 2019 2018 reports for the LGA Secretariat for 2018-19. The full statements, as well as those for LGA of SA $ subsidiaries LGA Procurement, LGA Mutual Liability Current assets Scheme and LGA Workers Compensation Scheme Cash and cash can be viewed online at www.lga.sa.gov.au equivalents 3 2,832,462 3,997,109 Trade and other receivables 4 4,371,929 3,914,120 Statement of Profit or Loss and Other Other current assets 43,443 25,372 Comprehensive Income Total Current Assets 7,247,834 7,936,601 For the year ended 30 June 2019 Non-current assets Note 2019 2018 Trade and other $ $ receivables 4 19,890,336 22,017,835

Revenue Financial assets 2 2 Subscriptions, finance and 1 8,233,350 8,970,435 Property, plant other income and equipment 5 22,402,191 22,760,917

Grant Revenue 10,344,822 32,853,386 Total Non-Current 18,578,172 41,823,821 Assets 42,292,529 44,778,754

Expense TOTAL ASSETS 49,540,363 52,715,355 Employee costs (5,155,979) (4,865,054) Current liabilities Depreciation, amortisation Trade and other (767,279) (712,288) & impairment payables 6 1,598,803 1,524,657

Grant expenditure (7,826,726) (28,691,255) Short-term borrowings 7 2,127,498 2,056,461 Finance expenses (792,045) (387,671)

Other expenses from (5,138,721) (6,207,142) Employee Benefits 584,688 688,801 ordinary activities 2

19,680,750 40,863,410 Total Current Liabilities 4,310,989 4,269,919 Non-current liabilities Total comprehensive (deficit)/surplus for the year (1,102,578) 960,411 Long-term provisions 105,978 91,964

The accompanying notes form part of the abridged financial reports Borrowings 7 19,890,336 22,017,835

Total Non-Current Liabilities 19,996,314 22,109,799

TOTAL LIABILITIES 24,307,303 26,379,718

NET ASSETS 25,233,060 26,335,637 Equity

Reserves 8 13,819,013 14,829,489

Retained profits 11,414,047 11,506,148

TOTAL EQUITY 25,233,060 26,335,637

The accompanying notes form part of the abridged financial reports 20 Statement of Changes in Equity For the year ended 30 June 2019 Asset Retained Project Total Total 2019 Revaluation Earnings Reserve Reserves Equity Reserve $ $ $ $ $

Opening Equity 11,506,148 7,743,304 7,086,185 14,829,489 26,335,637

Total Profit (loss) for the year (1,102,578) - - - (1,102,578)

Transfer (to)/from reserves 1,010,477 - (1,010,476) (1,010,476) -

TOTAL 11,414,047 7,743,304 6,075,709 13,819,013 25,233,060

Asset Retained Project Total Total 2018 Revaluation Earnings Reserve Reserves Equity Reserve $ $ $ $ $ Opening Equity 10,952,012 7,743,304 6,679,910 14,423,214 25,375,226

Total Profit (loss) for the year 960,411 - - - 960,411

Transfer (to)/from reserves (406,275) - 406,275 406,275 -

TOTAL 11,506,148 7,743,304 7,086,185 14,829,489 26,335,637

The accompanying notes form part of the abridged financial reports

Statement of Cash Flows For the year ended 30 June 2019 Note 2019 2018

$ $ Cash from operating activities: Receipts from operations 10,737,552 9,462,958 Receipts from grants 10,344,822 8,398,706 Interest received 72,323 58,823 Payments to suppliers and employees (11,235,558) (11,169,445) Payments of grants (7,826,726) (28,691,255) Interest paid (792,045) (387,671) TOTAL cash from/(used in) operating activities 1,300,368 (22,327,884) Cash from investing activities: Proceeds from financial assets - -

Payment for property, plant and equipment (408,553) (131,733)

Proceeds on sale of property, plant and equipment - 12,727

TOTAL cash used in investing activities (408,553) (119,006) Cash from financing activities: Proceeds from borrowings - 23,574,296

Repayment of borrowings (2,056,462) -

TOTAL cash (used in)/from investing activities (2,056,462) 23,574,296

Net cash increase/(decrease) in cash and cash equivalents (1,164,647) 1,127,406

Cash and cash equivalents at beginning of the year 3,997,109 2,869,703

Cash and cash equivalents at end of the year 3 2,832,462 3,997,109

The accompanying notes form part of the abridged financial reports 21 Notes to the financial statements For the year ended 30 June 2019

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

Secretariat Secretariat Project Project Total Total 2019 2018 2019 2018 2019 2018 $ $ $ $ $ $ Income Revenue from ordinary 8,154,092 8,476,972 79,258 493,463 8,233,350 8,970,435 activities Grant Revenue 202,423 437,767 10,142,398 32,415,619 10,344,821 32,853,386

8,356,515 8,914,739 10,221,656 32,909,082 18,578,171 41,823,821

Expense

Employee costs (4,450,106) (4,040,618) (705,872) (824,436) (5,155,978) (4,865,054)

Depreciation, amortisation (767,279) (712,288 ) - - (767,279) (712,288) & impairment Grant expenditure - - (7,826,726) (28,691,255) (7,826,726) (28,691,255)

Finance expenses (17,452) (7,287) (774,593) (380,384) (792,045) (387,671)

Other expenses from (3,464,947) (3,666,175) (1,673,774) (2,540,967) (5,138,721) (6,207,142) ordinary activities (8,699,784) (8,426,368) (10,980,965) (32,437,042) (19,680,749) (40,863,410) Total comprehensive (343,269) 488,371 (759,309) 472,040 (1,102,578) 960,411 income for the year

22 Notes to the financial statements For the year ended 30 June 2019

Note 1 - Revenue 2019 2018 $ $ Subscriptions and Contributions Subscriptions 2,278,856 2,227,613

Fees and Service Charges 1,702,380 1,679,106

3,981,236 3,906,719 Fees, Charges and Other Revenue Interest received 72,323 64,708

Administration charges 2,142,108 2,195,334

Assets received free of charge - 668,000

Rent and outgoings 996,129 1,158,272

Other revenue 1,041,554 977,402

4,252,114 5,063,716

8,233,350 8,970,435

Note 2 - Other Expenditure 2019 2018 $ $ Council webhosting, equipment rental, 1,313,611 1,397,010 licences and office costs

Project and Operating Contractors and 2,319,775 2,886,602 Consultants

Property Related Expenses 673,019 704,445

Other Expenses 832,316 1,219,085

5,138,721 6,207,142

Note 3 - Cash and Cash Equivalents 2019 2018 $ $

Cash and cash equivalents 2,832,462 3,997,109

23 Notes to the financial statements For the year ended 30 June 2019

Note 4 - Trade and Other Receivables 2019 2018 $ $

Current Trade receivables 564,144 383,059

Accrued Income 1,680,287 1,484,600

State Local Govt Infra Partnership receivable (1) 2,127,498 2,046,461

4,371,929 3,914,120

Non-Current State Local Govt Infra Partnership receivable (1) 19,890,336 22,017,835

19,890,336 22,017,835

(1) In 2018/19 the LGA entered into an agreement with the State Government to deliver the State Local Government Infrastructure Partnership Program. Under this program the LGA provided funding to councils valued at $24.074 million in 2017/18. The State Government is providing a grant to the LGA over ten years to cover the expenditure incurred in delivering this program. The LGA is recognising a current receivable of $2.127 million ($2.046 million) and a non-current receivable of $19.890 million ($22.018 million).

Note 5 - Property Plant and Equipment

Land and Furniture, Fitout, Motor Other works in Year ended 30 June 2019 Total Buildings Other Building Vehicles progress

$ $ $ $ $

Opening net carrying amount 20,648,390 1,985,888 126,639 - 22,760,917

Additions - 60,178 64,048 329,328 453,554

Disposals - - (45,000) - (45,000 )

Depreciation Expenses (442,500) (316,363) (8,417) - (767,280)

Closing Net carrying amount 20,205,890 1,729,703 137,270 329,328 22,402,191

Opening net 21,089,678 1,471,699 127,093 - 22,688,470 carrying amount

Additions - 93,265 38,319 - 131,584

Contributions Free of Charge - 668,000 - - 668,000

Disposals - - (14,849 ) - (14,849 )

Depreciation Expenses (441,288 ) (247,076) (23,924 ) - ( 712,288 )

Closing Net carrying amount 20,648,390 1,985,888 126,639 - 22,760,917

The Association’s land and buildings were revalued at 31 March 2017 by independent valuers, Maloney Field Services. Valuations were made on the basis of open market value. The revaluation surplus was credited to a revaluation reserve.

24 Notes to the financial statements For the year ended 30 June 2019

Note 6 - Trade and Other Payables 2019 2018 $ $ Current Trade payables and GST 148,531 816,445

Accrued expenses and other payables 1,450,272 708,212

1,598,803 1,524,657

Note 7 - Borrowings 2019 2018 $ $ Current Loan from LGFA 2,127,498 2,056,461

2,127,498 2,056,461 Non-current Loan from LGFA 19,890,336 22,017,835

19,890,336 22,017,835

Note 8 - Reserves 2019 2018 $ $

Project Reserves 6,075,709 7,086,185

Asset Revaluation Reserve 7,743,304 7,743,304

13,819,013 14,829,489

(a) Project Reserves The project reserve recognises funds received by the LGA from external providers. These funds are then distributed as per the relevant funding agreements. Also included are LGA funded projects with carry forward balances.

(b) Asset Revaluation Reserve The asset revaluation reserve records fair value movements on property, plant and equipment held under the revaluation model.

25 Appendix 1 - Local Government Research and Development Scheme Projects

The following projects were funded through the Local Government Research and Development Scheme in 2018-19.

Project Title Total Allocated Organisation Name

Supporting Local Government to implement the Planning, $100,000 Local Government Association of SA Development and Infrastructure Act 2016

Development of Disability Inclusion Community of Practice $100,000 Local Government Association of SA (and support development of DIAPs)

Costs of providing recycling services $70,000 Local Government Association of SA

Hardship Policy Guidelines $15,000 Local Government Association of SA

Delegations Review $100,000 Local Government Association of SA

Local Heritage Listing Policy and Procedures $35,000 Local Government Association of SA

Research into the Value of Libraries $50,000 Local Government Association of SA

Partnership Efficiency and Cost Pressure Research $50,000 Local Government Association of SA

Local Government Population Carrying Capacity Project Scope $15,000 Local Government Association of SA

Making it easier to run temporary events $15,000 Local Government Association of SA

i-Responda app - Council Resource Update $35,000 Local Government Association of SA

i-VISS developments $10,000 Local Government Association of SA

GAROC Annual Business Plan $100,000

SAROC Annual Business Plan $100,000

Public Health 'general duty' Evaluation $17,250 Flinders University

Efficiencies and service delivery in LG caravan parks $30,000 CERM PI, University of South Australia

Limestone Coast Local Government Coordination for Strategic Coastal Management $100,000 Association

Digital Maturity of Regional Local Government $28,000 Legatus Group

City of Onkaparinga (as host organisa- Guide for Leasing or Licencing Sports and Community Facilities $25,000 tion for the Local Government Recre- ation Forum)

Business Intelligence Benchmarking - Phase 1 $30,000 Wattle Range Council

Southern & Hills Local Government Resilient Hills & Coasts Community Energy Program $45,000 Association

Collective Impact: opportunities for LG innovation and reform $25,000 University of South Australia

Digital spotlight on recycling and waste reduction $35,000 East Waste

Leveraging Sister City relationships into economic development $8,000 Workforce BluePrint 26 During the year 23 projects funded through the Local Government Research and Development Scheme were completed. Further details on each of these projects are available of the LGA’s website.

Project title Total allocated Organisation name

Leveraging Sister City relationships into economic development $8,000 Workforce Blueprint

Digital Maturity of Regional Local Government $28,000 Legatus Group

Business Intelligence Benchmarking – Phase 1 $30,000 Wattle Range Council

Chiefs for Gender Equity $5,000 LGA

Rating equity for commercial and or industrial land $16,600 Legatus Group uses outside towns

Council Emergency Management Capacity $82,000 LGA

Realignment of the Hills Rail Corridor: Cost Benefit Scoping Study $25,000 Southern and Hills LGA

Places & Spaces – Facility Booking System for Councils $25,000 City of Prospect

District Council of Lower Eyre Pen- Disaster Ready $40,000 insula

Street lighting (alternatives) $55,000 LGA

Update Voters Roll Practice Manual $9,200 Revenue Professionals SA Inc

China Sword Policy $25,000 LGA

Exploring non-usage of Aquatic and Recreation Centres in $22,194 University of South Australia Vulnerable and Disadvantaged Community Groups

Trial and implementation of the RAVRAT $25,000

Strategic Procurement Policy $21,000 LGA

Business Analytics $80,000 LGA

The Role of Public Toilets in Mobility and Social Inclusion $23,926 Flinders University

Development and evaluation of economic development $29,500 Economic Development Australia measures

Governance $50,000 LGA

LGA Schemes Review – Phase 2 $100,000 LGA

Payment to the Remuneration Tribunal for Setting Council $70,000 LGA Member Allowances

NDIS impact on Metropolitan local governments $32,000 LG Professionals SA

Model Bike Share Scheme Policy and Procedure $15,000 LGA

27 148 Frome St Adelaide SA 5000

GPO Box 2693 Adelaide SA 5001

T (08) 8224 2000

E [email protected] www.lga.sa.gov.au

www.lga.sa.gov.au