2016-2017 LGA Annual Report

2016-17 Annual Report

Our vision is:

Our mission is: To provide leadership, support, representation and advocacy on behalf of South Australian councils, for the benefit of the community

www.lga.sa.gov.au Worked with the Australian Local Government Association to secure the return Partnered with the Government to deliver an of Financial improved and independent process for Assistance council boundary adjustments. Grants indexation, as well as $40 million in supplementary road funding for South Australian councils. Established the Local Government Functional Support Group to coordinate Highlights for 2016-17 Highlights for sector response and build capacity in councils during emergency events. Independently verified the average annual value of LGA advocacy, services and commercial entities to member councils to be worth Ran a promotional $1.55 million. campaign to increase community awareness of the value and extent of Negotiated a ten council services in the lead up year $47 million to 2018 council elections. extension to CWMS agreement with State Government. Negotiated a $25 million State Government investment in council projects through new State Local Government Infrastructure Partnership with the support of the LGFA, Worked with DPTI and councils on the that will support $124 million phased implementation of the State’s worth of infrastructure new planning system. developments. LGA Annual Report 2016-17

LGA member councils ...... 2

Highlights for 2016-17 ...... 4

President’s report...... 4

CEO’s report ...... 5

Strategic planning framework ...... 6

Values and behaviours...... 7

Key priorities and day to day work ...... 7

Key initiative 1 - Leadership and advocacy ...... 8

Key initiative 2 - Capacity building and sustainability...... 11

Key initiative 3 - Best practice and continuous improvement ...... 14

LGA Board...... 16

Nominees to local government and outside bodies ...... 18

Abridged financial statements ...... 20

Appendix 1- Local Government Research and Development Scheme projects...... 28

SOUTHERN MALLEE DISTRICT COUNCIL

Port Pirie Regional Council

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The LGA continues to work as a partner in government and part of the solution, with the goal of improving the amenity, prosperity and wellbeing of our communities. Lorraine Rosenberg LGA reports LGA President, LGA of SA

Strong advocacy on behalf of the sector generated some This partnership has been hugely successful in delivering significant wins for councils during 2016-17, including much needed Community Wastewater Management new and increased funding from both the Federal and Systems to regional and remote communities, providing State Government. public health, amenity and economic development outcomes. Working closely with the Australian Local Government Association (ALGA), we were able to successfully We also partnered with the Government to deliver an advocate for the reinstatement of annual indexation improved and independent process for council boundary for Financial Assistance Grants (FAGs). The Federal adjustments; worked closely with DPTI and councils on Government’s decision to freeze indexation on FAGs in the phased implementation of the State’s new planning its 2014/15 budget had a significant impact on South system; and successfully opposed changes proposed to Australian councils, with regional communities – where the State’s local heritage protection system. the grants make up a higher proportion of councils’ total revenue – the hardest hit. The reintroduction of this indexation in the 2017-18 Federal Budget meant an extra $4 million for South Australian councils, and I would like A second round of the Regional Youth to thank everyone who contributed to this outcome. Traineeship Program – delivered by the We also worked with ALGA to secure the return of LGA on behalf of the State – saw another supplementary road funding for South Australia. This 57 young people given their start in local funding was previously provided to SA councils to address the unfair share of Federal road funding received government, bringing the total number by our State, but removed in 2014, and it was fantastic to of positions supported through the see the Commonwealth commit to $40 million spread program to 114. across 2017-18 and 2018 -19. Once again, ALGA should be acknowledged for their strong advocacy on this issue. We will now work towards securing this funding as a recurrent item in future Federal budgets. The biggest threat to councils in South Australia is the policy of rate capping. The LGA has continued to The LGA also negotiated a new State Local Government undertake research on the impact rate capping is having Infrastructure Partnership to make it easier for councils to on councils and communities in NSW and Victoria, and bring forward local government infrastructure advocate on the issue to all political parties. projects foreshadowed in their long-term planning, through the assistance of a 20 percent upfront We also implemented a sector-wide three phase State Government grant. campaign to safeguard against the introduction of the policy in South Australia, which was formally supported Conceived through the Premier’s State Local by more than two thirds of South Australian councils. Government Forum, this partnership resulted in a $25 million State Government investment in There are a range of issues with the policy of rate 33 council infrastructure projects worth $124 million. capping, but perhaps the most significant is that it These projects are expected to support 190 jobs a removes local democracy. year over the next three years. Local government is the closest government to We also negotiated a ten-year, $47 million extension to communities, and we will continue to fight for the right our CMWS agreement with the State Government. of all councils to make decisions in close consultation with, and for the benefit of, their residents.

Earlier this year UHY Haines Norton independently verified the average annual value provided by the LGA through commercial entities, services and advocacy as being worth $1.55 million per council. Matt Pinnegar CEO, LGA of SA

The Association continues to refine its value proposition, We also worked with our members to help them with the goal of ensuring all services are efficient, transition to the Federal Government’s new effective and relevant to the changing needs of Commonwealth Home Support Program, build capacity member councils. to develop Disability Inclusion Access Plans, and assist them in the roll out of the Local Nuisance and Litter We have also continued to develop our education and Control Act and Regulations. training offerings, including signing an MOU with TAFE SA to improve the diversity, quality and accessibility of Industrial relations and workforce development are courses offered to members. regularly identified as key issues by our members, and this year the LGA appointed an industrial relations expert to provide advice to councils and drive IR efficiencies Recent changes to the State Emergency across the sector. Management Plan have recognised To increase understanding and support for councils, the and formalised the role councils play in LGA ran a promotional campaign around the value and emergency management, and we have extent of council services, which we will continue to refine and build on in the lead up to the 2018 state and undertaken a significant amount of work council elections. in this area. This has included establishing Internally, we are continuing to identify opportunities to the Local Government Functional Support improve the effectiveness and transparency of our own Group to coordinate sector response structure and operations. during emergency events, and providing Over the past twelve months we have completed the support and training to the sector on first phase of the LGA schemes review, progressed our review of the Association’s governance arrangements, changing emergency management and accelerated the transformation of LGA Procurement. responsibilities. We also undertook a member survey to seek input into LGA direction and programs. The cost of electricity is a significant issue for local A key focus for 2017-18 and beyond will be expanding government, and we worked with 43 councils this year the range of services we provide to members, and this to conduct an energy efficiency audit, and identify will be driven by a new Commercial Services function. opportunities for them to save money and reduce Councils are the most efficient sphere of government, carbon emissions. and through working together we can deliver greater Recognising the key role local government plays in efficiencies – and savings – for the communities we driving economic development, the LGA held a range represent. of economic development events and programs around I look forward to working with of our member councils, the theme “Future Towns, Future Cities”, while also partners in state and federal government and our continuing to support council and small to medium- communities towards building a stronger, more effective sized enterprise (SME) engagement in China. and resilient local government sector.

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

LGA key initiatives

• Policy Manual 68 councils LGA Plans – 5 to 10 years Plans – 5 to LGA Annual Priorities Annual • Annual Member • Strategic Plan At general meetings • Individual Survey • Long Term setting high level Performance Financial Plan Plans • Project Plans Plans Area Work • LG R&D Annual policy positions • Position • Stakeholder • Service Plans Business Plan Assist that represent Descriptions • LGA Annual Business Management Plan sector-wide views Individual Plans Plan & Budget • Commercial /a vision for Enterprises the State Advance

Key priorities and day to day work

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

Our key priorities for 2017-18 Our day to day work Run a campaign to protect communities from the Monitoring, reviewing and responding to policy, implementation of rate capping in South Australia. legislation and funding changes that impact local Continue to raise awareness of the extent and value government. of council services. Keeping councils informed of developments and best Advocate for councils and communities in the lead up practice. to the March 2018 state election. Delivery of training and development to the sector. Work with councils to increase voter turnout and Participating in committees, working groups and candidate numbers at 2018 council elections. networks where it adds value to our sector. Complete review of the LGA’s governance Responding to media and other external parties as arrangements. the voice of local government. Undertake review of the code of conduct in Responding to and assisting councils with frontline conjunction with member councils, and build sector advice and commercial activities. morale. Maintaining internal controls, risk management, Implement changes from review of the LGA’s systems of good governance. insurance schemes. Leadership, management and the wellbeing of staff. Establish a new Commercial Services function to increase the number and quality of services offered to member councils. Support councils to build healthy and resilient communities. Position and support local government as a driver of economic development.

Highlights for 2016-17

Ran promotional campaigns to improve awareness of council services and promote the LGA’s 2017-18 State Budget submission. Commenced preparation of promotional materials for

Key initiative 1 Key initiative 2018 council elections. Worked with the Australian Local Government Association (ALGA) to successfully advocate for the return of FAGs indexation, and $40 million in supplementary road funding for South Australia. Undertook research on the damaging impact of rate capping interstate, and commenced a campaign to stop its introduction in South Australia. Worked closely with DPTI and councils on a range of projects related to the phased implementation of the State’s new planning system. Worked closely with the Government on their Local Government (Boundary Adjustment) Amendment Bill in order to provide a clear and independent process for boundary adjustment. Progressed a schedule of joint priorities through Premier’s State/Local Government Forum including legislative reform, growing and supporting the economy, simpler regulation, codes of conduct, and a review of consultation protocols. Successfully advocated for State Government assistance for infrastructure destroyed during severe weather events. Transformed and reconstituted the Local Government Governance Panel (LGGP). Successfully advocated for change to the State Government’s planned overhaul of Local Heritage protections. Engaged with councils to help develop a design brief for a new state-wide Dogs and Cats Online (DACO) database, to be developed by the Dog & Cat Management Board. Consulted with councils and provided submissions to a range of Bills and Reviews on behalf of the local government sector.

LGA 2016-17 Annual Report  President’s Report  CEO’s Report  Key Initiative 1 - Leadership and advocacy  Key Initiative 2 - Capacity building and sustainability  Key Initiative 3 - Best practice and continuous improvement 8  LGA Board & nominees to local government and outside bodies  Financial Statements  Local Government Research and Development Scheme Projects Increasing understanding of local Rate capping government The LGA continued to undertake extensive research on rate capping, including the detrimental effect it is having on councils and communities in New South Wales and Promotional campaigns Victoria. This included commissioning research and The LGA worked with members to run a major public third party reports, creating a rate-capping information awareness campaign, highlighting the many ways in page on the LGA’s website, and conducting meetings which councils contribute to the everyday life of South and briefings with all political parties on the issue. Australians. The goal of this campaign was to increase In light of the unanimous motion at the LGA’s 2016 understanding of the extent and value of council facilities Ordinary General Meeting to oppose rate capping, the and services, and build on the proven reputation of President wrote to all mayors seeking support for a local government. A campaign was also run to promote sector-wide campaign to oppose the policy, with more the LGA’s 2017-18 State Budget submission, and draw than two thirds of councils committing support. The attention to key issues and priorities for the sector. LGA commenced a three phase campaign, with the first phase focussing on raising public awareness about the Council elections extent and value of council services. The second and third phases of this campaign will run in 2017-18. Work commenced on the 2018 council elections campaign. All promotional material will be provided to Planning and development councils by December 2017. This campaign has been informed by research undertaken after the 2014 council The Planning Development and Infrastructure Act was elections and engagement with council staff, and the enacted in April 2016, and the LGA worked closely with DPTI aim is to increase voter turnout, and the number and and councils on a range of projects related to the phased diversity of candidates. implementation of the State’s new planning system. This included participating as a member of the Minister’s Achieving influence for Collaborative Advisory Team, working with councils to prepare a submission on the draft Design Guidelines, local government supporting DPTI’s state-wide council roadshow, and negotiating a dedicated resource from DPTI to work with Commonwealth grants the LGA and councils over the next two years on the Strong advocacy from the LGA and Australian Local implementation of the new legislation. Government Association (ALGA) saw the reintroduction The LGA also successfully advocated for the deferral of Financial Assistance Grants in the 2017-18 Federal of council contributions to the State’s new e-planning Budget. This resulted in South Australian councils platform, saving all South Australian councils between collectively receiving an additional $4 million in untied $4,000 and $36,000 in 2017-18. Commonwealth funding in 2017-18. Financial Assistance Grants are particularly valuable as this funding is untied Boundary adjustment reform and can be used by councils to address local priorities. The LGA worked closely with the State Government on Advocacy from the LGA and ALGA also resulted in the the development of their Local Government (Boundary return of supplementary road funding for South Australia. Adjustment) Amendment Bill, which was passed This funding was previously provided to SA councils in August 2017. As a result, there will be clear and to address the unfair share of Federal road funding transparent process for councils and communities that received by our State, but removed in 2014. The 2017-18 wish to make changes to their boundaries when the Act Federal Budget included a $40 million commitment to comes into effect in 2019. supplementary road funding for SA spread over two years. The LGA would like to acknowledge the support State Government relations and contribution from ALGA in securing this funding and thank the Federal Government for this commitment. The LGA continued to advocate on key issues for the sector through regular meetings with the Minister for Local Government, as well as other Ministers with relevant portfolios. During 2016-17 the Premier's State/ Local Government Forum adopted a schedule of joint priorities that included legislative reform, growing and supporting the economy, simpler regulation, codes of conduct for members and employees and a review of the consultation protocols between government agencies and local government.

LGA 2016-17 Annual Report  President’s Report  CEO’s Report  Key Initiative 1 - Leadership and advocacy  Key Initiative 2 - Capacity building and sustainability  Key Initiative 3 - Best practice and continuous improvement  LGA Board & nominees to local government and outside bodies  Financial Statements  Local Government Research and Development Scheme Projects 9 Emergency management Priorities for 2017-18 The LGA advocated for State Government assistance for councils for remediation of damages to community Communications infrastructure due to storm events during 2016-17. Total Run a campaign to stop communities from damage to infrastructure was reported at approximately experiencing cuts to local services which would $14 million, with approximately 60% reimbursable from result if rate capping was introduced in SA, the State Government. including developing resources and tools to help councils and other groups actively oppose the Governance policy at a local level. The Local Government Governance Panel (LGGP) – which Ongoing public awareness campaign promoting operates as a member service under the auspices of the extent and value of council services. the LGA – was transformed and reconstituted with a new panel manager. The LGA also commissioned a full Policy legislative review of local government procurement processes; and developed guidelines and a model salaries Develop a state election policy platform register to assist councils to comply with their legislative outlining key issues for the sector; meet with requirements around reporting salaries and benefits. parties, candidates and stakeholders in the lead up to the 2018 state election to create a better Local heritage understanding of council services; and secure commitments that will benefit councils and The LGA worked closely with the Metropolitan Local communities. Government Group (MLGG) and City of Adelaide to develop a position paper in response to the State Work with councils to continue to develop Government’s Local Heritage Discussion Paper. This resources for the 2018 council elections, with the included holding a joint forum at Adelaide Town Hall goal of increasing voter turnout, and ensuring a strong and diverse field of candidates, including Leadership and advocacy Leadership featuring presentations from experts on the importance and economic value of local heritage. The Government an increase in the representation of women and announced in October 2017 they would not be further other under-represented groups. pursuing their previously proposed changes to the Continue to advocate for the outcomes and State’s local heritage protection system. policy positions passed by members at Annual and Ordinary General Meetings through research Dog and Cat Management and analysis, and engagement with members of The LGA engaged with councils to help develop a design parliament, state and federal agencies and other brief for Dogs and Cats Online (DACO) – a new state- stakeholders. wide database that will replace the individual databases Advocate for funding support to local run by councils from 2018. This new system will be government to develop and implement Disability developed by the Dog and Cat Management Board, and Access and Inclusion Plans for more accurate and is expected to generate savings for councils, simplify the inclusive communities. registration process, and provide improved functionality. Undertake investigations to assist councils in their roles with storm water and flood management. Submissions Support councils to build healthy and resilient The LGA consulted with councils and provided a number communities. of submissions on behalf of the sector, including to the Leading Practice Mining Acts Review; Green Industries Position and support local government as a SA’s draft Waste and Resource Recovery Infrastructure driver of economic development. Plan; the EPA’s draft Environment Protection (Waste Reform) Amendment Bill 2016; the review of the State NRM Plan, and the independent review of Regional Development Australia; and the Review of the South Australian Liquor Licensing Act 1997 and the draft Liquor Licensing (Liquor Review) Amendment Bill 2016.

Highlights for 2016-17

Negotiated a $25 million investment in council infrastructure through State Local Government Infrastructure Partnership. Negotiated a ten year $47 million extension to CWMS Key Initiative 2 Key Initiative agreement with State Government. Established the Local Government Functional Support Group to coordinate sector response during emergency events, and provided support and training to the sector on changing emergency management responsibilities. Administered two concurrent rounds of the Regional Youth Trainee Program, including 114 positions across 47 local government authorities. Conducted an energy efficiency audit with bespoke recommendations for 43 councils. Signed an MOU with TAFE SA to improve the diversity and quality of courses offered to members. Supported councils and SMEs to engage with China, including development of SASD business to business website and participation in China Business Mission. Ran a range of economic development events and programs around the theme “Future Towns, Future Cities”. Partnered with the EPA to work with councils to assist the roll out of the Local Nuisance and Litter Control Act and Regulations. Appointed an industrial relations expert to provide advice to councils and drive IR efficiencies across the sector. Undertook a range of activities to build capacity in councils to administrate and implement the South Australian Public Health Act. Worked with councils to increase capacity within the sector to develop Disability Inclusion Access Plans. Supported councils working through the Federal Government’s ongoing aged care sector reforms. Continued to provide support to councils through updates and improvements to Unity CMS and My Local Services App. Developed tools to help councils identify whether they would benefit from opting in to the State Government’s Building Upgrade Finance mechanism.

LGA 2016-17 Annual Report  President’s Report  CEO’s Report  Key Initiative 1 - Leadership and advocacy  Key Initiative 2 - Capacity building and sustainability  Key Initiative 3 - Best practice and continuous improvement  LGA Board & nominees to local government and outside bodies  Financial Statements  Local Government Research and Development Scheme Projects 11 Regional Youth Traineeship Program Build council capacity The LGA administered two concurrent rounds of the highly successful Regional Youth Traineeship Program on behalf of the State Government. This program now includes State Local Government Infrastructure 114 positions across 47 local governing authorities (45 Partnership regional councils, Outback Communities Council and LGA advocacy secured a $25 million State Government Yalata Aboriginal Community Council), and is providing commitment to local government infrastructure projects employment pathways for young people in regional SA in late 2016. The State Local Government Infrastructure while also revitalizing the local government workforce. Partnership provided councils with an upfront grant Energy efficiency of up to 20% to bring forward infrastructure projects already identified in their long term planning. In early The LGA conducted a high level energy efficiency 2017 the LGA facilitated the distribution of this funding audit with 43 councils, providing each with bespoke to 28 councils for 33 projects worth around $124 million. recommendations about opportunities to further Projects funded through this program will support reduce energy costs and carbon emissions. In addition, 190 jobs a year over the next three years. The Local a decision making tool and repository of sector-wide Government Finance Authority also contributed to energy efficiency information was developed, as well the success of this partnership through providing low as fact sheets detailing available grant and investment interest loans to participating councils. sources for energy efficiency activities. LGA Procurement will use the outputs of the audit to identify appropriate CWMS services to help councils achieve greater efficiencies. The Community Wastewater Management Scheme Education and training is a partnership between the State Government, LGA and councils that delivers much needed community The LGA’s Education and Training Service ran 73 courses wastewater management systems to regional and during 2016-17, that were attended by 1,336 council remote communities. The LGA negotiated a ten year $47 members and staff; while also expanding its offerings to million extension to the CWMS agreement with the State include webinars and video conferencing. At the April 2017 Government in 2016-17, while continuing to work with Ordinary General Meeting the LGA signed a Memorandum councils to deliver new systems throughout the year. of Understanding with TAFE SA to more effectively deliver CWMS schemes continuing construction or completed training courses, both in person and online. during 2016-17 included Mallala, Tulka, Pt Neill, Penneshaw, Cowell, Wirrabara, Peterborough, Truro, Arno International engagement Bay, Mid-Murray Shacks and Kingston on Murray HRAP. The LGA collaborated with the Department of State Emergency management Development, Australia China Business Council and RDA Adelaide to support councils and SMEs to engage with The review of the State Emergency Management Plan China. This included coordination of the Shandong Working

Capacity building and sustainability and establishment of the Local Government Functional Group, the business-to-business bilingual web platform Support Group (LGFSG) has been a major step in SASD Connect, staging a Regional SA showcase for inbound the evolution of councils supporting state agencies Chinese business investors, supporting councils and SMEs during and after emergencies. The Local Government with an inbound mission, and participating in the Premier’s Emergency Management Framework was produced 2017 Business Mission to China. during 2016-17 to assist councils to understand their roles and responsibilities in emergency management, Electronic Services Program and inform stakeholders how councils fit into state The Unity content management system was successfully emergency management arrangements. The LGA also migrated to a local cloud provider, delivering further continues to deliver the i-Responda program to councils resilience and scalability for almost 200 individual local to assist with the provision of support to emergency government websites. The ESP team also continued to services during emergency events. work with individual councils to upgrade websites to more responsive and modern designs, and deployed a new Emergency Alert feature allowing councils to quickly deploy alerts on their websites. The My Local Services App was improved to include more flexible reporting capabilities, and coverage was boosted as more councils signed up throughout the year.

LGA 2016-17 Annual Report  President’s Report  CEO’s Report  Key Initiative 1 - Leadership and advocacy  Key Initiative 2 - Capacity building and sustainability  Key Initiative 3 - Best practice and continuous improvement 12  LGA Board & nominees to local government and outside bodies  Financial Statements  Local Government Research and Development Scheme Projects Economic development Priorities for 2017-18 The LGA’s economic development theme for 2016-17 Policy was “Future Towns, Future Cities”, and included events and initiatives related to Smart Cities, and the impact Support councils in the transition to the technology is having on the planning, budgeting, National Disability Insurance Scheme. administration and operations of councils. Continue to work with DPTI and councils to Industrial relations facilitate a smooth transition to the State’s new planning system. Responding to demand from member councils, the LGA appointed an industrial relations expert to provide Further progress the development and councils with advice as required, and also spearhead implementation of the Local Government work the Association is doing to identify and drive IR Functional Support Group. efficiencies across the sector. Work with the Office of Local Government Local Nuisance and Litter Control Act and Local Government Grants Commission to develop guidelines and processes that The LGA worked collaboratively with the EPA to ensure will support the State Government’s new councils were fully informed about the requirements boundary reform legislation. of the new Local Nuisance and Litter Control Act and Development of Local Government Strategic Regulations. Collaboration included the provision of a Procurement Policy and Guidelines to full-time EPA officer acting as a key liaison between the help councils undertake procurement that EPA and LGA, and the delivery of information sessions contributes to local economic development. and workshops attended by more than 500 council staff. Support councils to develop and maintain Public health Disability Access and Inclusion Plans, as A work plan focused on further developing the sector’s prescribed in forthcoming State legislation. capacity to administrate and implement the South Work with councils on Smart Cities/Smart Australian Public Health Act included the development Communities. of public health indicators for local government planning, the development of a guide for integrated public health Continue to work with the EPA on the planning and the updating of a public health funding and implementation of the Local Nuisance and resource directory. Litter Control Act. Disability inclusion Partner with the EPA and councils on waste reform. The LGA worked with councils to increase capacity within the sector to develop Disability Inclusion Access Continue to support local economic Plans that will become mandatory under the State development through China engagement. Government’s draft Disability Access Bill. Member Services Ageing strategy Development of the “Prevention to The LGA continued implementing the Ageing Strategy Intervention” program to improve sector 2016-2021, and developed research, discussion papers morale, including investigating opportunities and submissions to support member councils through for peer support. the Federal Government’s ongoing aged care sector reforms. The 2017-18 Federal Budget extended Work with member councils to review the funding arrangements for the Commonwealth Home code of conduct for council members, Support Programme (CHSP) for an additional 2 years, and present recommendations to the until 30 June 2020. Government. Building Upgrade Finance Conduct a sector-wide training needs analysis, and re-align the LGA’s training and The LGA managed the development of a ‘Council Guide development program. to Building Upgrade Finance’ and a ‘Decision Assist Tool’ Continue to develop and improve Unity to help councils identify whether they would benefit website platform. from opting in to the State Government’s Building Upgrade Finance mechanism. Investigate opportunities to improve video conferencing to provide better access to LGA events and training.

Highlights for 2016-17

Completed first phase of LGA schemes review. Undertook significant engagement across the sector associated with the review of the Association’s

Key Initiative 3 Key Initiative governance arrangements. Undertook member survey to seek input into LGA direction and programs. Validated member value proposition through UHY Haines Norton, which verified average annual benefit provided to member councils of $1.55 million. Commenced work on transformation of LGA Procurement. Developed suite of new eNewsletters to better engage with member councils and stakeholders. Internal review of LGA events to restructure the event program.

Member Survey Priorities for 2017-18 A member survey was undertaken in February/March 2017, seeking input into the LGA’s strategic direction and Member and Corporate Services service delivery. This survey identified rate capping, asset management, economic development, revenue and Develop a new Commercial Services function sustainability, legislation and compliance, shared services, to increase the range and quality of services community engagement, planning, benchmarking and offered to member councils. waste policy issues as key areas councils want the LGA Further progress review of the LGA’s to focus on. The LGA services identified by respondents governance arrangements, including as priorities included advocacy, elections, insurance and preparation of a new proposed governance indemnity schemes, legal/governance advice, research structure and revised constitution. and development, procurement and shared services, financial sustainability resources, training, workforce Implement changes to improve the development and industrial relations, and emergency governance arrangements of the LGA Schemes. management. This survey will now be undertaken Develop bench marking for sector, and annually. investigate opportunities for shared services and aggregated procurement. Member value proposition Complete a business case outlining commercial UHY Haines Norton completed an independent options for LG House. verification of LGA’s value proposition in early 2017, validating a $32.2 million annual benefit provided to through commercial entities, $49.9 million through advocacy activities, and $23.7 million through services. This resulted in an average benefit across all councils of $1.55 million per year.

Vice President & Metropolitan Zone President Vice & Metropolitan Zone President Vice & Riverland Zone & Murraylands President Vice Vice President & Limestone Coast Zone Coast & Limestone President Vice Cr Sue Clearihan Mayor David Parkin Mayor Peter Hunt Mayor Erika Vickery OAM City of Adelaide City of Burnside Berri Barmera Council Naracoorte Lucindale Council

Observers Southern & Hills Zone Limestone Coast Zone Coast Limestone Metropolitan Zone Zone Peninsula Eyre MLGG Executive Metro CEO Rep Metro Executive MLGG President Professionals LG Mayor Glen Rowlands Mayor Richard Sage Mayor Bill Spragg Mayor Sam Telfer Kiki Magro CEO Mark Dowd CEO (Deputy) (Deputy) (Deputy) (Deputy) Town of Walkerville City of Onkaparinga DC of Yankalilla DC of Grant Adelaide Hills Council DC of Tumby Bay

The LGA has numerous nominees on working parties, boards and committees including many State Government bodies. Most representatives are council representatives or staff. Nominees Through our nominees, the Association is kept abreast Libraries Board of SA of and helps influence change in plans, projects and Ms Lynn Spurling, District Council of Copper Coast initiatives. At the same time, local government’s views on Cr Jan-Claire Wisdom, Adelaide Hills Council policy and proposals for amendments to legislation are also addressed. Cr Jill Whittaker, Campbelltown City Council The LGA thanks all of those who have given their time Local Government Association Mutual Liability Scheme (in most cases without reward) contributing to these Mayor Dave Burgess, Local Government Association bodies in the interests of local government. Key bodies Mr Matt Pinnegar, Local Government Association pursuant to Acts of Parliament and nominees at 30 June Cr Max Amber OAM, Campbelltown City Council 2017 included: Mr Mario Barone, City of Norwood Payneham & St Peters Adelaide Cemeteries Authority Mayor Bruce Green, City of Port Lincoln Cr Sue Clearihan, Adelaide City Council Dr Helen Macdonald, Naracoorte Lucindale Council Board of Trustees of Country Arts SA Local Government Association Workers Compensation Cr Peter Dunn, Regional Council of Goyder Scheme Mayor Dave Burgess, Local Government Association Coast Protection Board Mr Matt Pinnegar, Local Government Association Ms Anita Crisp, Central Local Government Region Cr Max Amber OAM, Campbelltown City Council Coastal Protection Board Local Government Advisory Mr Charles Mansueto, Adelaide Plains Council Committee Mayor Bruce Green, City of Port Lincoln Mr Stephen Smith, Local Government Association Dr Helen Macdonald, Naracoorte Lucindale Council Cr Robert Randall, City of Charles Sturt Mr Peter Halton, Wattle Range Council Local Government Finance Authority Mr John Comrie (nominated by Light Regional Council) Development Assessment Commission Dr Andrew Johnson (nominated by Port Pirie Regional Mayor David O’Loughlin, City of Prospect Council) Dog & Cat Management Board Local Government Research & Development Scheme Mr John Darzanos, City of Salisbury Advisory Committee Cr Gail Kilby, City of Onkaparinga Mayor Peter Hunt, Berri Barmera Council (Chairperson) Cr Janet Loveday, Adelaide Hills Council Mayor Bruce Green, City of Port Lincoln Environment Protection Authority Board Cr Sue Clearihan, Adelaide City Council Dr Helen Macdonald, Naracoorte Lucindale Council Mr Tony Siviour, LG Professionals (SA) Mr Mark Withers, City of Port Adelaide Enfield Mr Henry Inat, Town of Gawler Industrial Relations Consultative Committee Ms Alex Hart, Office for Local Government Mr Phil Harrison, City of Playford Mr Peter Lamps, Australian Workers Union Professor John Spoehr, Flinders University Mr Matt Pinnegar, Local Government Association

The following pages contain abridged financial statements for the LGA Secretariat for 2016-17. The full statements, as well as those for LGA of SA subsidiaries LGA Procurement; LGA Mutual Liability Scheme and LGA Workers Compensation Scheme can be viewed online at www.lga.sa.gov.au Statement of profit or loss and other comprehensive income Local Government Association of South Australia

For the year ended 30 June 2017

Note 2017 2016 $ $

Revenue from ordinary activities 1 8,741,662 6,625,578 Project income 2 7,450,808 9,773,482 Abridged financial reportsAbridged financial Employee costs (3,893,074) (3,686,553) Depreciation, amortisation & impairment (676,699) (719,317) Project expenditure 2 (9,467,432) (16,596,579) Other expenses from ordinary activities (3,744,180) (2,558,516)

Profit/(loss) from ordinary activities (1,588,915) (7,161,906)

Other comprehensive income 3,141,875 -

Total comprehensive income for the year 1,552,960 (7,161,906)

The accompanying notes form part of the abridged financial statements

For the year ended 30 June 2017

Note 2017 2016 $ $ Cash and cash equivalents 3 2,869,703 2,122,913 Trade and other receivables 4 1,857,097 2,685,507 Other current assets 36,782 36,252 Total Current Assets 4,763,582 4,844,673

Non-current assets Financial assets 2 4 Property, plant and equipment 5 22,688,470 20,412,357 Total Non-Current Assets 22,688,472 20,412,361

Total Assets 27,452,054 25,257,033

Current liabilities Trade and other payables 6 847,600 733,094 Short-term borrowings 7 500,000 - Short-term provisions 580,552 576,486 Total Current Liabilities 1,928,152 1,309,580

Non-current liabilities Long-term provisions 148,676 125,187 Total Non-Current Liabilities 148,676 125,187

Total Liabilities 2,076,828 1,434,767

Net Assets 25,375,226 23,822,266

Equity Reserves 8 14,422,930 17,487,470 Retained profits 10,952,296 6,334,796 Total Equity 25,375,226 23,822,266

The accompanying notes form part of the abridged financial statements

For the year ended 30 June 2017

2017 Opening Comprehensive Transfers Closing Equity Income to/(from) reserve Equity $ $ $ $ Retained Profits 6,334,796 (1,588,915) 6,206,415 10,952,296 Building Mtce & Equip Reserve 3,219,217 - (3,219,217) - Employee Entitlement Reserve 701,673 - (701,673) - Project Reserves 8,965,151 - (2,285,525) 6,679,626 Asset Revaluation Reserve 4,601,429 3,141,875 - 7,743,304 Total 23,822,266 1,552,960 - 25,375,226

2016 Opening Comprehensive Transfers Closing Equity Income to/(from) reserve Equity $ $ $ $

Abridged financial reportsAbridged financial Retained Profits 6,732,398 (7,161,906) 6,764,304 6,334,796 Building Mtce & Equip Reserve 2,684,172 - 535,045 3,219,217 Employee Entitlement Reserve 818,992 - (117,319) 701,673 Project Reserves 16,147,181 - (7,182,030) 8,965,151 Asset Revaluation Reserve 4,601,429 - - 4,601,429 Total 30,984,172 (7,161,906) - 23,822,266

The accompanying notes form part of the abridged financial statements

For the year ended 30 June 2017

Note 2017 2016 $ $ Cash from operating activities: Receipts from operations 9,542,352 4,783,779 Payments to suppliers and employees (7,219,345) (5,190,992) Project funding received 7,405,125 9,773,482 Project funding expensed (9,576,542) (16,596,579) Interest received 70,746 129,762

Total cash from/(used in) operating activities 222,336 (7,100,548)

Cash from investing activities: Proceeds from financial assets 2 - Payment for property, plant and equipment (12,816) (94,448) Proceeds on sale of property, plant and equipment 37,268 -

Total cash used in investing activities 24,454 (94,448)

Cash from financing activities: Proceeds from borrowings 500,000 - Repayment of borrowings - -

Total cash (used in)/from investing activities 500,000 -

Net cash increase/(decrease) in cash and cash equivalents 746,790 (7,194,996)

Cash and cash equivalents at beginning of the year 2,122,913 9,317,909

Cash and cash equivalents at end of the year 3 2,869,703 2,122,913

The accompanying notes form part of the abridged financial statements

For the year ended 30 June 2017

Note 1 Revenue

2017 2016 $ $ Operating activities Subscriptions 2,173,287 2,120,276 Administration charges 2,225,096 2,094,928 Rent and outgoings 1,466,345 1,901,354 Fees and service charges 2,092,289 - 7,957,017 6,116,558 Non-operating activities Interest received 27,191 129,762 Other revenue 757,453 379,258 784,644 509,020 8,741,662 6,625,578 Abridged financial reportsAbridged financial

2017 2016 $ $ Opening balance 1 July 8,965,151 16,147,181

Income 7,450,808 9,773,482 Employee Expenses (733,632) (734,936) Depreciation (83,517) (16,833) Grants & Contributions expense (7,200,832) (13,835,703) Contractors & Consultants (1,353,385) (1,207,882) Other Expenses (96,064) (801,223) (2,016,622) (6,823,096)

Adjustment for internal charges (268,619) (358,934) (2,285,241) (7,182,030)

Closing balance 30 June 6,679,910 8,965,151

Note 3 Cash and cash equivalents 2017 2016 $ $ Cash and cash equivalents 2,869,703 2,122,913

Note 4 Trade and other receivables 2017 2016 $ $ Current Trade and other receivables 625,818 1,150,259 Accrued income 1,231,279 1,535,248 1,857,097 2,685,507

For the year ended 30 June 2017

Note 5 Property, plant and equipment 2017 2016 $ $ Land and buildings Freehold land – at valuation 3,500,000 2,915,806 Buildings – at valuation 17,700,000 16,734,194 Less: accumulated depreciation (110,322) (1,255,065) 17,589,678 15,479,129 Total land and buildings 21,089,678 18,394,935 Plant and equipment Building improvements At cost 290,996 290,996 Less: accumulated depreciation (187,824) (178,517) Abridged financial reportsAbridged financial 103,172 112,480 Office furniture & equipment At cost 3,311,608 3,283,323 WIP - 102,772 Less: accumulated depreciation (1,943,081) (1,708,009) 1,368,527 1,678,086 Motor vehicles At cost 230,585 304,483 Less: accumulated depreciation (103,492) (77,627) 127,093 226,856 Total plant and equipment 1,598,792 2,017,421 Total property, plant and equipment 22,688,470 20,412,357

The Association’s land and buildings were revalued at 1 April 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.

Note 7 Borrowings 2017 2016 $ $ Current Loan from LGFA 500,000 - 500,000 -

Note 8 Reserves 2017 2016 Project Reserves 6,679,626 8,965,151 Asset Revaluation Reserve 7,743,304 4,601,429 14,422,930 13,566,580

(a) Project reserves The project reserve recognises carry forward balance of unspent project commitments held by the Local Government Association of South Australia. These balances are then distributed as per the relevant funding agreement with State Government, Federal Government and Local Government Finance Authority. Also included are LGA funded projects with carry forward balances.

(b) Asset revaluation reserve The asset revaluation reserve records unrealised gains on the revaluation of land and buildings.

During 2016-17 funding was approved through the Local Government Research and Development Scheme for the following projects:

File Funds Project Name Proponent (Primary) Number Approved 2016.31 Instrument of Delegations - Airports $8,500.00 District Council of Ceduna 2016.32 Disaster Ready $40,000.00 District Council of Lower Eyre Peninsula 2016.33 Audit of Energy Efficiency Activities $19,895.47 LGA of SA 2016.35 Eyre Peninsula Regional Strategic Plan $50,000.00 Regional Development Australia Whyalla and Eyre Peninsula and EPLGA 2016.36 Realignment of the Hills Rail Corridor: Cost Benefit Scoping Study $25,000.00 Southern and Hills LGA 2016.37 Suicide Prevention Networks - development of an Evaluation $30,000.00 University of South Australia Toolkit 2016.39 Places & Spaces - Facility Booking System for Councils $25,000.00 City of Prospect 2016.42 Valuing Social Outcomes $50,000.00 Local Government Professionals Australia, SA Community Managers Network 2016.44 Long Term Financial Plan Model Review and Update $20,000.00 South Australia Local Government Financial Management Group 2016.45 Guidelines to plan climate change actions & identify monitoring $38,850.00 Central Local Government Region needs of SA 2016.52 Enhancing Professionalism in Environmental Health $20,000.00 Environmental Health Australia (SA) Inc 2016.53 Removal of organic chemicals from water by aquifer filtration in $25,000.00 Flinders University managed aquifer recharge schemes LG Research and Development Research LG 2016.55 Development and implementation of an emergency information $8,000.00 LGA of SA splash page for councils in SA 2016.56 The Role of Public Toilets in Mobility and Social Inclusion $23,926.00 School of Social and Policy Studies, Flinders University 2016.57 Approaches to Integrated economic development $25,000.00 City of West Torrens 2016.58 An Empirical Assessment of Rate-pegging for South Australian $25,000.00 Centre for Local Government, Local Government University of New England 2016.60 State-Local Government Infrastructure Investment Partnership $30,000.00 LGA of SA 2017.01 EARS Enhancement $20,000.00 LGA of SA 2017.02 Coastal Adaptation Decision Pathways Guidance $30,000.00 LGA of SA 2017.03 Strategic Investment Plan for Future Proofing Infrastructure $50,000.00 LGA of SA 2017.04 Community Wellbeing Monitor $50,000.00 LGA of SA 2017.06 Review of water management legislation & policy $20,000.00 LGA of SA 2017.07 LG Elections 2018, Support and Promotion $142,000.00 LGA of SA 2017.08 Evidence to inform advocacy for a Strategic Population Policy $40,000.00 LGA of SA 2017.09 LGA Outreach Services 2017-18 $300,000.00 LGA of SA 2017.10 LGA Schemes Review - Phase 2 $100,000.00 LGA of SA 2017.12 Authorised Persons web resources $5,000.00 LGA of SA 2017.13 LG Workforce Alignment $75,000.00 LGA of SA 2017.14 e-Learning development $52,947.00 LGA of SA 2017.15 Community Engagement $20,000.00 LGA of SA 2017.16 An Elected Member training pathway $25,000.00 LGA of SA

File Completion Project Name Proponent (Primary) Number Date 2010.01 Renewable Energy Pilot Program LGA of SA 21/07/2016 2011.40 Biodiversity Fund / Carbon Farming Pilot project LGA of SA 20/07/2016 2012.37 An Advocacy Intergovernmental Toolkit for LGA of SA 30/03/2017 Councils 2014.09 Abundant Species Management LGA of SA 28/02/2017 2014.11 Open Data / Creative Commons Licensing LGA of SA 31/01/2017 2014.23 Fleurieu Futures Alexandrina Council, City of Victor Harbor & DC of 30/12/2016 Yankalilla 2014.35 Local Government Led Community Housing Berri Barmera Council 30/09/2016 2015.02 Elections Review - Stage 1 LGA of SA 9/01/2017 2015.04 Online Training Resource Development LGA of SA 31/12/2016 2015.13 Legislative Reforms for the Local Government Act LGA of SA 30/06/2017 2015.14 Legal Advisory Service - Pilot Program LGA of SA 1/07/2016 2015.17 One Workforce - Libraries Public Library Services (PLS) and Public Libraries 23/01/2017 SA (PLSA) 2015.20 Private sector auditors compared to the State The University of Adelaide, School of Accounting 28/10/2016 Auditor General and Finance 2015.23 Parks Alive! Program - Refresh and Relaunch Parks & Leisure Australia 29/07/2016 2015.24 Helping Disadvantaged Communities through Mid Murray Council 16/04/2017 Collective Impact 2015.25 Strategic procurement risk management, Central Local Government Region 30/11/2016 compliance, governance & reporting model 2015.33 Why Local Government Matters in SA Institute for Public Policy and Governance, 16/11/2016 University of Technology Sydney 2015.37 Managing mutual obligation volunteers Flinders University 16/09/2016 2015.50 Review of the Better Practice Model, Financial South Australian Local Government Financial 30/06/2017 Internal Controls Management Group SALGFMG 2016.02 Review of Arrangements for Code of Conduct LGA of SA 30/06/2017 Complaints 2016.06 LG Workforce Alignment LGA of SA 30/06/2017 2016.08 Schemes Review LGA of SA 31/12/2016 2016.15 Shared Services Analysis and Economic Modelling LGA of SA 30/04/2017 2016.18 Asset Management Guidance for small rural LGA of SA 31/05/2017 Councils 2016.24 Social Media 2.0 LGA of SA 31/12/2016 2016.31 Instrument of Delegations - Airports District Council of Ceduna 30/04/2017 2016.55 Development and implementation of an LGA of SA 31/12/2016 emergency information splash page for councils in SA 25.04.69 Financial Sustainability Program Implementation 2 LGA of SA 30/06/2017 25.04.86 WSUD Capacity Building Program (Originally titled LGA of SA 31/12/2016 - Cities as Water Catchments)

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