Agenda Item 14.2.2 REPORT Report No.243/12 cncl TO: ORDINARY COUNCIL —10 DECEMBER 2012 SUBJECT: REDUCED FUNDING TO ALICE SPRINGS TOWN COUNCIL AUTHOR: DIRECTOR FINANCE — PAUL DELLA EXECUTIVE SUMMARY Pursuant to a decision taken by Council at its Ordinary meeting held on 28 February 2011, this report provides an update to elected members on the disadvantage suffered in reduced grant funding availability to the Alice Springs Town Council, due to the non-recognition of the true size and service centre nature of Alice Springs. IT IS RECOMMENDED that Council note this report. REPORT 1. BACKGROUND In December 2010, the Hon. Simon Crean MP, writing in his capacity as Minister for Regional Australia, Regional Development and Local Government stated that "As Alice Springs population was less than the required 30,000 it was not eligible to receive the $150,000 growth component" of Regional and Local Community Infrastructure funds. It was a resolution of Council that this matter be reviewed following release of the Census results. (Attachment 1). 2. DISCUSSION The latest census information shows that Alice Springs is still some 1,500 people below the 30,000 population threshold that would have seen it be eligible for the $150,000 in additional funding available back in 2010-2011. As was mentioned in the Council resolution in 2011, this population figure does not reflect the true size and service centre nature of Alice Springs. It is opportune when discussing the reduced availability of specific purpose grant funding to also mention the declining level of Financial Assistance Grants being provided to Alice Springs Town Council. The end result of decisions taken by other levels of government around the eligibility of Alice Springs Town Council for grant funding and reducing the level of Financial Assistance Grants available to Council is increased rates for the residents of Alice Springs and/or a decrease in the level of services delivered to the municipality. 3. POLICY IMPACTS Nil Report No. -/2 4. FINANCIAL IMPACTS Potentially higher rates to maintain existing service levels. 5. SOCIAL IMPACTS Nil. 6. ENVIRONMENTAL IMPACTS Nil 7. PUBLIC RELATIONS Nil 8. ATTACHMENTS 1. Resolution of Council to review the issue after the release of census figures and associated documentation. 2. Various correspondence attachments Paul Della DIRECTOR FINANCE A-n-pict-(tivIEN1 ALICE SPRINGS TOWN COUNCIL RECORD OF DECISION COUNCIL MEETING 28 FEBRUARY 2011\ Please refer to instructions in the Footer Note 2. Funding Under the Regional Local Community Infrastructure Program (Item 9.2) Report No. 28/11f For Council's information the attached is a response to a letter sent to the Hon Anthony Albanese MP regarding Council's classification and the disadvantage being suffered in reduced funding received, due to non-recognition of the true size and service centre nature of the town. Moved Alderman Rawnsley Seconded Alderman Taylor That this matter be reviewed following release of the results from the census on 9th August 2011. (49880 CARRIED (15993) The Responsible Officer is required to action, make appropriate notes in EDM (under Discussion - Create Forum Topic) and sign off on each Council Decision in the EDM System. Once completed, you are required to forward this document to the CEO's Executive Assistant so the Council Decision can be recorded as completed. Agenda Item 9.1 REPORT Report No. 28/11f TO: FINANCE COMMITTEE —14 FEBRUARY 2011 SUBJECT: FUNDING UNDER THE REGIONAL LOCAL COMMUNITY INFRASTRUCTURE PROGRAM AUTHOR: DIRECTOR FINANCE — CHRIS KENDRICK EXECUTIVE SUMMARY For Council's information the attached is a response to a letter sent to the Hon Anthony Albanese MP regarding Council's classification and the disadvantage being suffered in reduced funding received, due to non-recognition of the true size and service centre nature of the town. RECOMMENDATIONS That it be a recommendatiOn to Council: That this matter be reviewed following release of the results from the census on 9th August 2011. REPORT 1. BACKGROUND Further to a report to Council in July 2010, a letter was sent to the Hon Anthony Albanese MP regarding the reduction in level of funding experienced due to the basis for allocation of funding under the Regional Local Community Infrastructure Program. DISCUSSION Attached is a copy of a chase up letter sent on 5 th November 2010 to the Hon Anthony Albanese MP (attachment B), along with a copy of the Mayor's original letter and the recent response received from the Hon Simon Crean MP (attachment A). This highlights the need for the census to be more accurate in respect of the true population of Alice Springs, a matter which has been discussed on numerous occasions with the Australian Bureau of Statistics (ABS). With the ABS opening an office in Alice Springs the hope would be that the 2011 census may achieve more accuracy in the area. 3. POLICY IMPACTS Ni! 4. FINANCIAL IMPACTS This issue continues to impact funding received from both Federal and NT Government. 5. SOCIAL IMPACTS Nil. Report No. 28/1If -/2 6. ENVIRONMENTAL IMPACTS Nil 7. PUBLIC RELATIONS Nil 8. ATTACHMENTS A Reply from the Hon Simon Crean MP B Letter dated 5th November 2010 from Rex Mooney to the Hon Anthony Albanese MP DIRECTOR FINANCE Aff,Ac-A-4rvIal.3 -r- ,4 THE HON SIMON CREAN MP Minister for Regional Australia, Regional Development and Local Government Minister for the Arts Reference: C101523 , 2.1 DEC 2OtO Mr Rex Mooney RErva Chief Executive Officer JAN Alice Springs Town Council JoincE SPRINGS PO Box 1071 VAN -COUNCIL ALICE SPRINGS NT 0871 Dear Mr Mooney I refer to your letter of 5 November 2010 to the Hon Anthony Albanese MP, Minister for Infrastructure and Transport, concerning the Australian Classification of Local Governments Code for the Alice Springs Town Council and its effect on funds provided through the Regional and Local Community Infrastructure Program — Round 3 (RLCIP Rd3). As the matter raised falls within my portfolio responsibilities your letter has been forwarded to me. The status of local governments under the Australian Classification of Local Governments (ACLG) are reviewed annually by state and territory local government grants commissions and I am advised by my Department that there has not been any recent change to the status of Alice Springs Town Council. Alice Springs Town Council is considered an urban regional centre, however it is still subject to the RLCIP Rd3 guidelines which state 'Councils classified as 'urban fringe' or urban regional' according to the Australian Classification of Local Governments Code, who have at least 30,000 residents, will receive an additional growth component of $150,000". As Alice Spring's population was less than the required 30,000 it was not eligible to receive the $150,000 growth component Yours sincerely SIMON CREAN Parliament House Canberra'anberra ACT 2600 Telephone: (02) 6277 7380 Facsimile: (02) 6273 4117 5$60einber2,00!, Chief Exectitivet Office • • : • • • • • H, • . ThetiOnAnthOW..,..._ "tieSegST MnistrrInastructurc,Tmnsport, egionaI Dvelopment and'149eatGovernruent PO iitox. ouse emsentatnos Parliament ouse Caibe ' 'CT 2600 Dear Minister,:. Regional ire OmmunItyinfrattracture• Program -,Romitl 3 On 6141y,g410 HiS1 Worship, .Mayor Dañen Ryan wrote to you.inrelationftcrAlibe Spain s. • eits toncerns4r0 14.A.jObeing<recogriised agstegiottalAirhan- • The attachedcorrespondence refers together With a r.',opy of pap 1 of Alice Strings News dated24111Y 2010. Can you please prOSfidea7direct answer as.to-Why the Alice Springs Town Council is not recognised as an urhan.regionarcentrewhielPhes the consequence of Council not receiving2the.additional;iegibnat growth amp:merit of $150,000 under the kegional and Local Community InfraStruetureProgram,(RCUP). Alice Springs Town Council' looks fOr-Veard/61,our.responseetthe earliest opportunity., With-regards. Your faithfully ktex Mooney Chief Eecutiye Officer tliliedion Warren Snowden., MP I Trikace 13.0X4671 AliCg isTticidS#01;'aild-GregorY $p-riogs•OT' 0871. ojori8:915s2, i.., Faxj., . •- kfl,)49'5"39. 55 tufaik-astc©astc;nt.goviao_ gb. - gokaa- Mayor's Office The Hon Anthony Albanese MP Minister for Infrastructure, Transport, Regional Development and Local Government. PO Box 6022 House of Representatives Parliament House Canberra ACT 2600 6th July 2010 Dear Minister Albanese, Re: Regional and Local Community -Infrastructure Program Round 3 I refer to your response of 27th January 2009' to my letter of 8th December 2008 regarding the allocation of funding under. the first round of the Regional and Local Community Infrastructure Program. You note in your reply that you will consider the issues raised in my letter in any future development in local government funding. I would like some feedback as to the effects your consideration of the Alice Springs Town Council's issues have had on the calculation of the funding for round 3. I raise this in light • of the fact that the funding allocated to Alice Springs Town Council in round 3 has reduced from that which was allocated in round -2 and that the Council has again not been allocated the additional growth component of $150,000: Minister, Council would ask that you review previous correspondence on this matter, a copy of which is enclosed for your attention and the allocation made to the Alice Springs Town Council under the RLCIP program. I have any queries on this matter please do not hesitate to contact me. sincerely, amie u Ryan Y R Cnr Todd Street and.Gregery Terrace • PO Box 1071 Alice Springs NT 0871 ROA Tel; (o8) 89 500 500 • Fax: (08) 89 530 55 8- Alice Spring Email: [email protected] • Web: irwmaticesprings.nt.gov.au TOWN COUNCI 2A,9 The Hon Anthony Albanese MP Minister for infrastructure, Transport, Regional Development and Local Government Leader of the House 2 7 JAN 2009 Reference: 11750-2008 Cr Damien Ryan Mayor Alice Springs Town Council PO Box 1071 ALICE SPRINGS NT 0871 Dear Thank you for your letter dated 8 December 2008 about the allocation to Alice Springs Town Council under the Regional and Local Community Infrastructure Program (RLCIP)• The local government response to this program has been overwhelmingly positive.