Northern TerritoryGrants Commission Annual Report 2018/19
II –Northern Territory Grants Commission Annual Report 2018/19
Northern Territory Grants Commission Annual Report 2018/19 — III
The Hon. Gerry McCarthy MLA Minister for Local Government Housing & Community Development Parliament House DARWIN NT 0801
Dear Minister
In accordance with section 16 of the Local Government Grants Commission Act 1986, I have pleasure in presenting to you the Annual Report for the Northern Territory Grants Commission on its activities for 2018-19. Included in the report are the financial statements for the year ended 30 June 2019.
Yours sincerely
Dr David Ritchie Chair
16 October 2019
4 –Northern Territory Grants Commission Annual Report 2018/19
Contents
4 –Northern Territory Grants Commission Annual Report 2018/19
Foreword......................................................................................................................................................6
The.Northern.Territory.Grants.Commission..................................................................................................7
Background....................................................................................................................................................... 7
Relevant.legislation.......................................................................................................................................... 7
Organisation.and.People................................................................................................................................8
Membership...................................................................................................................................................... 8
Members’.profiles............................................................................................................................................. 9
Administration.and.staffing.............................................................................................................................. 11
Summary.of.Activities.2018-19......................................................................................................................12
Executive.Officers’.meeting.............................................................................................................................. 12
Visits/Public.hearings.to.local.governing.bodies.............................................................................................. 12
Financial.data................................................................................................................................................... 13
Annual.financial.statements............................................................................................................................. 13
Submissions..................................................................................................................................................... 13
Payments.2018-19............................................................................................................................................ 13
Estimated.entitlement.2019-20........................................................................................................................ 13
Entitlement.2018-19......................................................................................................................................... 13
Cash.entitlement.2019-20................................................................................................................................ 14
Communication.with.councils........................................................................................................................... 14
Council.letters.of.advice................................................................................................................................... 14
Revenue.and.expenditure.assessments.of.local.governments........................................................................ 14
Recommendations.........................................................................................................................................15
Chairman’s.letter.............................................................................................................................................. 15
Recommendation.Schedule.2019-20................................................................................................................ 18
Northern Territory Grants Commission Annual Report 2018/19 — 5
Schedules.....................................................................................................................................................19
Schedule.1.-.Population.2019-20.................................................................................................................... 19
Schedule.2.-.Cost.adjustors.and.key.drivers.2019-20.................................................................................... 20
Schedule.3.-.Road.lengths.2019-20................................................................................................................ 21
Schedule.4.-.Reconciliation.of.local.government.income.and.expenditure.................................................... 22
Schedule.5.-.Local.government.income.2017-18........................................................................................... 23
Schedule.6.-.Actual.local.government.expenditure.2017-18.......................................................................... 24
Schedule.7.-.Assessed.revenue.2017-18........................................................................................................ 25
Schedule.8.-.Summary.standardised.revenue................................................................................................ 26
Schedule.9.-.Standardised.expenditure......................................................................................................... 27
Schedule.10.-.National.share.of.financial.assistance.grants.2019-20............................................................ 28
Schedule.11.-.Visits/Public.hearings.to.local.governing.bodies..................................................................... 28
Appendices...................................................................................................................................................34
Appendix.A.-.National.principles.for.the.allocation.of.general.purpose.and.local.road.grants..................... 34
Appendix.B.-.Methodology.and.formula.factors............................................................................................. 35
Appendix.C.-.The.Australian.Classification.of.Local.Government.(ACLG)...................................................... 40
Appendix.D.-.Northern.Territory.local.governments.by.classification........................................................... 41
Appendix.E.-.Northern.Territory.map.of.local.government.areas.................................................................. 42
Appendix.F.-.Auditor-General.Independent.Auditor’s.Report.to.the.Minister.for.Local.Government........................Housing.and.Community.Development.Northern.Territory.Grants.Commission........................Year.Ended.30.June.2019............................................................................................................ 43
Appendix.G.-.Auditor-General.Independent.Auditor’s.Report.to.the.Chief.Executive.of.the........................Department.of.Local.Government.Housing.and.Community.Development.on.the........................Statement.of.Payments.made.to.Local.Governing.Bodies.by.the.Northern.Territory........................during.the.year.1.July.2018.to.30.June.2019............................................................................... 47
6 –Northern Territory Grants Commission Annual Report 2018/19
I am pleased to present the 33rd annual report of the Northern Territory Grants Commission.
This report contains information on the distribution of funding provided to the Northern Territory’s local governing bodies under the Commonwealth’s Local Government (Financial Assistance) Act 1995, as well as details on the objectives, performance and future directions of the Commission. The report contains information on programs and performance during the year to assist public understanding and scrutiny of the Commission’s operations and functioning.
The major focus for the Commission is to determine general purpose and local roads grants for each Northern Territory Local Government council. The Commonwealth’s May 2019 budget indicated that there would be again a brought forward payment. Consequently, $17 825 464 of the 2019-20 grants were brought forward and paid to councils in June 2019.
The Commission is required to distribute all funding on the basis of resident population as determined by the ABS. When the general purpose grants were calculated for the 2018-19 year using the current methodology and incorporating the Australian Bureau of Statistics estimate of resident population as at 30 June 2018 (released 27 March 2019) revealed that 15 out of 17 councils experienced population decreases.
These decreases in population meant that the amount of grant funding available to affected councils would be commensurately reduced. The Commission determined the reduction in funding anticipated (if an unmediated application of the funding formula was applied) would have been very difficult for some councils to absorb. To mitigate this, the Commission resolved to include a ‘loss assist factor’ into the 2018-19 methodology as a financial “buffer” for those councils most seriously affected. This adjustment
was applied to all councils which stood to receive a loss greater than five per cent of grant funding. The Commission also resolved to review the applicability of this parameter for the 2019-20 funding round.
The following is discussed in greater detail in the “Summary of Activities 2018-19” section ofthe report.
• National Conference
• Executive Officers’ Conference; and
• Visits and Public Hearings
On behalf of the current Commission members I wish to record our appreciation for the valuable cooperation and assistance that we have received during our work throughout the year from local governing bodies, and in particular those visited during the course of the year.
The Commission is grateful for the executive support and assistance provided by Ms Donna Hadfield, Local Government and Community Development Division of the Department of Local Government, Housing and Community Development, combined with the assistance and services provided by the Department’s regional offices.
I would also like to acknowledge the efforts of my colleagues Ms Meeta Ramkumar, Mr Damien Ryan and Mr Steven Hennessy. Their assistance has been very much appreciated.
Dr David Ritchie Chairman
Foreword
Northern Territory Grants Commission Annual Report 2018/19 — 7
Background
On 1 July 1986, the Australian Government began a process of yearly appropriations to the state/territory governments for distribution as financial assistance grants to local governing bodies within the respective jurisdictions. A subsequent review of the enabling legislation led to the current Act, the Local Government (Financial Assistance) Act 1995.
Under section 6(1) of the Act, the Australian Government Minister for Local Government, after consulting with the relevant state Ministers and with bodies representative of local government, must formulate national principles.
In formulating the national principles, the Minister:
• is to have regard to the need to ensure that the allocation of funds for local government purposes is made, as far as practicable, on a full horizontal equalisation basis; but
• must ensure that no local governing body will be allocated an amount in a year that is less than the amount that would be allocated to the body if 30 per cent of the amount to which the state/territory is entitled in respect of the year was allocated among local governing bodies on a per capita basis.
The Local Government (Financial Assistance) Act 1995 also repeated a requirement from an earlier Act that each state and the Northern Territory have a Local Government Grants Commission. In accordance with that requirement, the Northern Territory legislated for a statutory, independent Commission, the Northern Territory Grants Commission, in June 1986.
Role of the Northern Territory Grants Commission
The Commission is established as an independent statutory authority under the Local Government Grants Commission Act 1986. Its primary role is to recommend the allocation of the financial assistance grants provided by the Australian Government for Northern Territory local governing bodies in the form of general purpose grants and local roads grants.
Relevant Legislation
The Northern Territory’s Local Government Grants Commission Act 1986 also provides for the appointment of Commission members and specifies the general operations of the Commission, including the annual reporting requirements.
The Australian Government’s Local Government (Financial Assistance) Act 1995 provides for the basis of the allocation of financial assistance by each Local Government Grants Commission to its respective local governing bodies in its state and/or the Northern Territory.
The national principles formulated by the Australian Government Minister are to guide the respective Local Government Grants Commissions in the allocation of funds to local governing bodies within their own jurisdictions.
The number of national principles currently stands at seven – six applying to the allocation of general purpose grants and one applying to the allocation of local road grants. The national principles are detailed at Appendix A.
The Commission
8 –Northern Territory Grants Commission Annual Report 2018/19
8 –Northern Territory Grants Commission Annual Report 2018/19
8 –Northern Territory Grants Commission Annual Report 2018/19
Membership
The Local Government Grants Commission Act 1986 provides for a Commission of four members, consisting of:
• a Chairman appointed by the Minister;
• the Chief Executive (CE) of the agency primarily responsible to the Minister for the administration of the Act, or their delegate, and
• two members appointed by the Minister, one representing the interests of municipal councils, and the other representing the interests of regional and shire councils.
In 2018-19, the members of the Commission were:
Dr David Ritchie Chairman – appointed 21 December 2016 to 20 December 2020
Ms Meeta Ramkumar CE’s delegate – appointed 02 August 2017
Mr Damien Ryan Representing municipal councils – appointed 1 September 2011 to 31 August 2017 28 September 2017 to 31 March 2018 10 May 2018 to 31 August 2021
Mr Steven Hennessy Representing regional and shire councils – appointed 11 May 2010 resigned 19 December 2018
Ms Christina Miller Deputy for Mr Ryan from 10 May 2018 to 31 August 2021
Ms Narelle Bremner Deputy for Mr Hennessy from 25 October 2016 until 18 December 2018
Ms Jocelyn Nathanael-Walters Deputy for Ms Meeta Ramkumar – appointed 02 August 2017
In 2018-19, the Accountable Officer of the Commission was:
Ms Donna Hadfield Accountable Officer – officially appointed 20 July 2017
Organisation and People
Northern Territory Grants Commission Annual Report 2018/19 — 9
David Ritchie
David has worked in professional and executive roles in the public and not for profit sectors in the Northern Territory since 1981. For more than 20 years he held the position of chief executive. This role included:
• Department of Lands and Planning and Northern Territory Land Development Corporation (2009 - 2012)
• Department of Housing, Local Government and Sport (2008 - 2009)
• Department of Natural Resources, Environment and the Arts (2005 - 2008)
• Aboriginal Areas Protection Authority (1990 - 2003).
Other executive roles include Director of Parks and Wildlife and Department of Infrastructure, Planning and Environment Natural Resource Management Division Executive Director (2003 - 2005).
David also worked in professional roles as an anthropologist in statutory bodies responsible for administering the Northern Territory’s Indigenous cultural heritage and land rights laws including the Northern Land Council, Museum and Art Gallery of the Northern Territory and the Aboriginal Sacred Sites Authority.
His present positions include Director Ninti One Limited, board member Northern Territory Land Corporation, member of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory and Chair of the Northern Territory Planning Commission.
Damien Ryan
Damien was born in Alice Springs. He commenced his business career in 1972, working in the retail photographic industry. He gained invaluable knowledge of the tourism industry as licensee of Mount Ebenezer and Dunmarra roadhouses. His experiences include directorships of the following companies in the Northern Territory: Alice Springs Camera Shop Pty Ltd, Dajon Agencies Pty Ltd Mt. Ebenezer Investments Pty Ltd and Dunmarra Roadhouse.
Damien is a lateral thinker and enjoys applying his analytical and problem-solving skills to achieve successful outcomes to a wide variety of situations.
Damien is the Mayor of Alice Springs, a graduate of the Australian Institute of Company Directors and a Justice of the Peace.
Other positions Damien holds include; President of the Local Government Association Northern Territory (LGANT) and Vice President of the Australian Local Government Association (ALGA). He is involved in many organisations that work toward the sustainable development and advancement of Alice Springs and the Northern Territory. These include the Deputy Chair - Outback Highway Development Council and Chair - Alice Springs Alcohol Reference Group.
Damien and his wife Joanne have three daughters who live in Alice Springs.
Members’ Profiles
10 –Northern Territory Grants Commission Annual Report 2018/19
Steven Hennessy
Steven was born in South Australia and spent his youth in the Riverland before moving to Adelaide. He had a career in event support management for Spotless Catering across southeast Australia from the early 1980s until 1995, when he was injured in a car accident. After being a regular visitor to the Territory since 1998, he became a permanent resident of Timber Creek, 300kms south-west of Katherine, in 2005.
Steven became a councillor for the Victoria Daly Shire Council in October 2008, Deputy Mayor from October 2011 until October 2013, Acting Mayor up until July 2014, after which time he became the Mayor. Steve stepped down as Mayor in August 2016.
During his tenure he was a delegate of the Local Government Association of the Northern Territory. Steve was also involved in a number of local government related organisations, including the NT Heritage Council, the National Local Government Drug and Alcohol Advisory Council the NT Water Safety Advisory Committee. He also has his own general maintenance small business and is renovating an old railway house in Larrimah. His hobbies include golf and history.
Steven formally resigned from the NT Grants Commission on 19 December 2018 and now resides in South Australia where he was recently elected as a council member of the Mid Murray Council.
Christina Miller
Fay and her family came to Katherine in December 1989 for a planned 4 year stay. Within this time the family knew Katherine was to be their home.
Fay has been deeply involved in the Tourism industry as both an operator and now as a passionate advocate for this vital Katherine industry.
Fay believes that wherever you live you must take responsibility for the growth and development of that community at whatever level you are capable; be it a sporting association, community organisation, business development or local government. Fay has always strived to that end.
Fay is currently the Mayor of Katherine Town Council.
Narelle Bremner
Narelle is a long-term resident of Tennant Creek having been raised and attending school in the town. She has a bachelor of social work and has worked in the area of child trauma, sexual assault and domestic violence.
Narelle has a strong commitment to community wellbeing and regional development, having served on a number of boards including the Tennant Creek Hospital Board and the Tennant Creek Women’s Refuge Board. Narelle is currently an elected Councillor for the Barkly Regional Council.
Northern Territory Grants Commission Annual Report 2018/19 — 11
Administration and Staffing
The costs of operation of the Commission for the year were met by funds appropriated to the Department of Local Govenment, Housing and Community Development. The operational expenditure for 2018-19 was $182 924 compared to $117 581 in 2017-18.
The Executive Officer, Ms Donna Hadfield of the Department of Local Government, Housing and Community Development, coordinated the visitation program and assisted with the Commission’s activities through the provision of executive support.
12 –Northern Territory Grants Commission Annual Report 2018/19
Executive Officers’ meeting
On 1-2 November 2018 the Department of Infrastructure, Regional Development and Cities facilitated an Executive Officers’ Workshop in Canberra.
Key items on the agenda included:
• Caps and collars - do they have a place in grant outcomes;
• Capacity to raise revenue - how does each State/Territory determine;
• Other grants support and factoring back; and
• Improvements to the program.
Visits to local governing bodies
The Commission’s rolling visitation program to councils continued in 2018-19. The program takes three years to complete; although special circumstances may warrant departures from the pre-planned program. The two regional councils, including their 14 service delivery centres and three shire councils, visited in 2018-19 are listed in Schedule 11.
Summary of Activities in 2018-19There was no National Forum of Local Government Grants Commission in 2018 as the forums are held on a biennial basis.
The next forum will be hosted by the Queensland Local Government Grants Commission in November 2019.
Northern Territory Grants Commission Annual Report 2018/19 — 13
Financial data
The total revenue and expenditure of councils in the 2017-18 financial year amounted to $626 million and $504 million respectively. Included in these amounts were revenues and expenditures not considered to relate strictly to local government. Thus, for the 2019-20 allocations, the Commission determined local government income to be $219.166 million and local government expenditure to be $328.806 million.
The presentation of financial information via the Commission’s annual return for all councils was achieved mid-January 2019.
The data collected in these returns is used by the Commission to allow an assessment of the income and expenditures of individual councils and to determine total income and expenditure of all local governments in the Northern Territory. The Australian Bureau of Statistics, in its local government financial statistics and national accounts, also uses this data.
Annual audited financial statements
Regulation 17 of the Local Government (Accounting) Regulations stipulates that a copy of councils’ audited annual financial statements be forwarded to the Chairman of the Northern Territory Grants Commission no later than 15 November each year. All the councils succeeded in lodging their annual financial statements by the date specified.
Submissions
No submissions were presented to the Commission at its visits/public hearings during the year.
Payments 2018-19
During 2018-19, grants continued to be paid in quarterly installments. In addition there was an early payment brought forward in June 2019. The total payments to local governing bodies during the year are summarised below:
16 August 2018 $4 383 562
16 November 2018 $4 383 562
18 February 2019 $4 383 562
16 May 2019 $4 383 610
18 June 2019 $17 825 464
Total distribution of 2018-19 payments
$35 359 760
Estimated entitlement 2019-20
The Commonwealth allocates the general purpose and local road grants based on an estimated population figure and an estimated CPI growth factor for the coming year as determined by the Australian Statistician. This calculation is what is known as the estimated entitlement. The amounts for 2019-20 are $17 180 555 and $18 263 231respectively.
Entitlement 2018-19
The Australian Government’s estimate of the national rate of inflation for the year to 31 March 2019 was overstated which resulted in the entitlement for 2018-19 being over-estimated by $115 140. The adjustment comprised an underpayment of $24 329 (general purpose) and an overpayment of $139 469 (local roads). The 2019-20 council payments have been adjusted by these amounts based on the data used for the distribution of the estimated entitlement for 2018-19.
14 –Northern Territory Grants Commission Annual Report 2018/19
Cash entitlement 2019-20
The cash entitlement for 2019-20 is the estimated entitlement for the year plus the underpayment for general purpose and less the overpayment for roads in 2018-19.
Communication with councils
In accordance with its policy to keep all Northern Territory councils informed about its operations and latest developments, the Commission corresponds on a regular basis with individual councils on many issues. The following list summarises the main items sent to all councils during the year.
Subject Date
Letter advising the estimated entitlements for the 2018-19 general purpose and local road grants
15 August 2018
Letter (electronically) advising the requirement to lodge an annual return
06 November 2018
Commission’s Annual Report available on web
06 November 2018
Letter (electronically) advising the requirement to lodge an annual road return
18 January 2019
Letters advising of the brought forward payment of the 2019-20 general purpose and roads grants
17 June 2019
Council letters of advice
Letters of advice in 2018-19 provided the following comprehensive information to councils:
• A sheet detailing the council’s grant allocations and payment schedule for 2018-19;
• A sheet showing the calculation of standardised expenditure and standardised revenue for the council;
• A matrix showing the application of the three cost adjustors against the various expenditure categories;
• A bar chart showing the cost adjustors calculated for the council which underpin the calculation of standardised expenditures;
• A sheet showing the calculation of the council’s identified local road entitlement for 2018-19;
• A grant trend chart of the council’s grants over five years; and
• A sheet showing the 2018-19 grant allocations for all Northern Territory councils.
A similar package will be provided to each council for the 2019-20 year, and this process will continue into the future.
Revenue and expenditure assessments of local governments
Revenue and expenditure assessments are included at Schedules 8 and 9. Key drivers and a matrix of how the cost adjustors are applied are also included at Appendix B.
Northern Territory Grants Commission Annual Report 2018/19 — 15
GPO Box 4621 DARWIN NT 0801 Telephone (08) 8999 8820
Office of the Executive
Second Floor, RCG House, 83-85 Smith Street, Darwin NT
File No: NTGC2019/1
The Hon Gerry McCarthy MLA Minister for Local Government, Housing and Community Development GPO Box 4621 DARWIN NT 0801 Dear Minister I have recently received advice on the amounts available for allocation as financial assistance grants under the Commonwealth's Local Government (Financial Assistance) Act 1995 for the 2019-20 financial year. In accordance with this advice and section 12(1)(a) of the Local Government Grants Commission Act 1996, I am now pleased to present to you the Commission’s recommendation schedule for the distribution of these grants. In making the recommendations, I confirm that: (a) all general-purpose recommendations conform with section 6(2)(b) of the
Commonwealth’s Local Government (Financial Assistance) Act 1995 in allocating amounts that are not less than those to which local governing bodies would be eligible to receive if 30% of the total to which the Northern Territory is entitled was distributed among local governing bodies on a per capita basis;
(b) the Commission held public hearings and permitted local governing bodies and
the Local Government Association of the Northern Territory to make submissions in connection with the recommendations in accordance with section 11(2)(c)(i) & (ii) of the Local Government (Financial Assistance) Act 1995;
(c) road funds were divided on weighted road length but, in addition, continued to
include a base or minimum figure of $10 000 for all councils on the basis that a derived figure of less than this amount would not be commensurate with a realistic acceptance of road maintenance and responsibility; and
(d) the allocations comply with section 12(1)(a) of the Local Government Grants
Commission Act 1996 in that the total amount of all money recommended to be allocated is equal to the amount of money provided to the Northern Territory under the Local Government (Financial Assistance) Act 1995 for the 2019-20 financial year.
RecommendationsChairman’s Letter
16 –Northern Territory Grants Commission Annual Report 2018/19
GPO Box 4621 DARWIN NT 0801 Telephone (08) 8999 8820
The attached recommendation schedule outlines the proposed grant allocations for approval by the Hon Mark Coulton MP. The recommendation schedule comprises the "estimated entitlement" for 2019-20 minus the advance “stimulus’ payment already made in 2018-19, the net cash adjustment for 2018-19 and the proposed grant recommendations. Estimated Entitlement The Commonwealth allocates the general purpose and local road grants based on an estimated population figure and an estimated CPI growth factor for the coming year as determined by the Australian Statistician. This calculation is what is known as the estimated entitlement. The amounts for this year are $17 180 555 and $18 263 231 respectively. Cash Adjustment The Commonwealth has advised that there is a total overpayment of $115 140 in relation to the 2018-19 grants. The overpayment comprises an underpayment of $24 329 (general purpose) and an overpayment of $139 469 (local roads). General Comments When the general purpose grants were calculated this year using the current methodology and incorporating the latest Australian Bureau of Statistics 2016 census estimated resident population data, all councils with the exception of Palmerston and Litchfield, experienced population decreases. The initial 2019-20 allocations resulted in six regional/shire councils and two municipal councils experiencing losses in grant outcomes even though the overall amount of funding available had increased. The loss outcomes for the regional/shire councils; Tiwi Islands, Victoria Daly, Barkly, Belyuen, Commalie and Wagait was due to these councils having a comparatively less dispersed or isolated area of operations compared to the other regional councils. The losses experienced by the municipal councils of Katherine and Alice Springs are correlated to increases in their specific grant support and/or general rates revenue. The Commission determined the losses anticipated (if an unmediated application of the funding formula was applied) would have been very difficult for some councils to absorb. To mitigate this, the Commission resolved to include a ‘loss assist factor’ into the 2019-20 methodology. This adjustment was applied to all councils which stood to receive a loss greater than five per cent of grant funding. A total of six councils benefited from the loss assist factor which totalled $389 224. The Commission also resolved to review the applicability of this parameter for the 2020-21 funding round.
Northern Territory Grants Commission Annual Report 2018/19 — 17
GPO Box 4621 DARWIN NT 0801 Telephone (08) 8999 8820
The Commission resumed its visitation program in 2018-19, visiting five councils as well as their various constituent service delivery areas. The visits allowed elected members and the wider community to gain a better understanding of the role of the Commission and the way in which funding is allocated. They also ensured the Commission gains an on-the-ground experience of regional contexts, affecting local government services. Advice to Councils In relation to the grant advice to councils, the Commission will continue to enclose supporting documentation with my letter of advice that will allow them to have a greater appreciation on exactly how the Commission has calculated their grants. The Commission’s Annual Report is currently being prepared and will be forwarded to you in accordance with section 16 of the Local Government Grants Commission Act 1996 in due course. Yours sincerely DR DAVID RITCHIE Chair 12 July 2019
18 –Northern Territory Grants Commission Annual Report 2018/19
Rec
omm
enda
tion
Sche
dule
201
9-20
Cou
ncil
Estim
ated
Ent
itlem
ent
Brin
g fo
rwar
d Es
timat
ed E
ntitl
emen
t le
ss B
ring
Forw
ard
Add/
Less
Adj
ustm
ent
2018
-19
Cas
h Pa
ymen
t To
tal C
ash
Gen
eral
Pur
pose
R
oads
G
ener
al
Purp
ose
Roa
ds
Gen
eral
Pu
rpos
e R
oads
Ad
d G
ener
al
Purp
ose
Less
R
oads
G
ener
al
Purp
ose
Roa
ds
Fin
anci
al
Assi
stan
ce
20
19-2
0 20
19-2
0 20
19-2
0 20
19-2
0 20
19-2
0 20
19-2
0 20
18-1
9 20
18-1
9 20
19-2
0 20
19-2
0 20
19-2
0
$
$ $
$ $
$ $
$ $
$ $
Alic
e S
prin
gs T
own
Cou
ncil
646
782
977
790
323
820
495
645
322
962
482
145
980
(7 5
81)
323
942
474
564
798
506
Bar
kly
Reg
iona
l Cou
ncil
1 68
8 11
6 47
9 71
5 81
6 48
0 23
7 58
2 87
1 63
6 24
2 13
3 2
471
(3 6
22)
874
107
238
511
1 11
2 61
8 B
elyu
en C
omm
unity
Gov
ernm
ent C
ounc
il 24
667
33
700
12
350
17
114
12
317
16
586
37
( 262
) 12
354
16
324
28
678
C
entra
l Des
ert R
egio
nal C
ounc
il 1
105
596
1 01
1 99
4 59
9 74
1 46
9 33
2 50
5 85
5 54
2 66
2 1
542
( 6 9
97)
507
397
535
665
1 04
3 06
2 C
ity o
f Dar
win
1
817
504
1 94
2 98
0 92
5 84
9 1
002
121
891
655
940
859
2 58
1
(15
088
) 89
4 23
6 92
5 77
1 1
820
007
City
of P
alm
erst
on
813
277
1 02
8 57
3 41
0 01
7 47
4 01
3 40
3 26
0 55
4 56
0 1
116
( 7 2
09)
404
376
547
351
951
727
Coo
mal
ie C
omm
unity
Gov
ernm
ent C
ounc
il 29
869
51
2 24
8 16
854
25
8 70
1 13
015
25
3 54
7 44
( 3
778
) 13
059
24
9 76
9 26
2 82
8 E
ast A
rnhe
m R
egio
nal C
ounc
il 3
334
802
1 28
6 50
3 1
658
384
649
101
1 67
6 41
8 63
7 40
2 4
594
( 9 9
11)
1 68
1 01
2 62
7 49
1 2
308
503
Kat
herin
e To
wn
Cou
ncil
554
536
629
019
277
635
330
995
276
901
298
024
840
( 5 0
52)
277
741
292
972
570
713
Litc
hfie
ld C
ounc
il 54
9 85
7 2
656
944
290
810
1 36
4 58
3 25
9 04
7 1
292
361
776
(
20 7
12)
259
823
1 27
1 64
9 1
531
472
Loca
l Gov
ernm
ent A
ssoc
iatio
n of
the
Nor
ther
n Te
rrito
ry
n/a
1 59
9 64
0 n/
a 82
1 86
1 n/
a 77
7 77
9 n/
a
(12
459)
n/
a 76
5 32
0 76
5 32
0
Mac
Don
nell
Reg
iona
l Cou
ncil
1 89
0 70
6 1
023
808
925
574
521
771
965
132
502
037
2 59
4
(7
972
) 96
7 72
6 49
4 06
5 1
461
791
Rop
er G
ulf R
egio
nal C
ounc
il 2
035
063
1 09
9 74
8 1
065
935
562
935
969
128
536
813
2 86
5
(8
564
) 97
1 99
3 52
8 24
9 1
500
242
Tiw
i Isl
ands
Reg
iona
l Cou
ncil
400
170
996
614
200
351
505
594
199
819
491
020
606
(7 7
60)
200
425
483
260
683
685
Vic
toria
Dal
y R
egio
nal C
ounc
il 46
4 69
1 71
5 29
6 23
2 65
3 36
0 08
5 23
2 03
8 35
5 21
1 70
4
(5
570
) 23
2 74
2 34
9 64
1 58
2 38
3 W
agai
t Shi
re C
ounc
il 11
265
56
450
7
406
28 6
67
3 85
9 27
783
17
(440
) 3
876
27 3
43
31 2
19
Wes
t Arn
hem
Reg
iona
l Cou
ncil
1 26
8 26
7 1
236
007
618
941
615
901
649
326
620
106
1 79
2
(9
456
) 65
1 11
8 61
0 65
0 1
261
768
Wes
t Dal
y R
egio
nal C
ounc
il 54
5 38
7 97
6 20
2 26
3 31
9 46
3 34
4 28
2 06
8 51
2 85
8 77
0
(7
036
) 28
2 83
8 50
5 82
2 78
8 66
0 To
tal
$17
180
555
$18
263
231
$8 6
46 1
19
$9 1
79 3
45
$8 5
34 4
36
$9 0
83 8
86
$24
329
($13
9 46
9)
$8 5
58 7
65
$8 9
44 4
17
$17
503
182
Northern Territory Grants Commission Annual Report 2018/19 — 19
Schedules
* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
Schedule 1
Population used for the 2019-20 allocations
Council Population
Alice Springs Town Council 26 371
Barkly Regional Council 7 347
Belyuen Community Government Council 173
Central Desert Regional Council 4 182
City of Darwin 84 093
City of Palmerston 37 629
Coomalie Community Government Council 1 382
East Arnhem Regional Council 10 281
Katherine Town Council 10 556
Litchfield Council 25 441
MacDonnell Regional Council 6 821
Roper Gulf Regional Council 7 352
Tiwi Islands Regional Council 2 736
Victoria Daly Regional Council 3 119
Wagait Shire Council 505
West Arnhem Regional Council 6 860
West Daly Regional Council 3 627
TOTAL 238 475
20 –Northern Territory Grants Commission Annual Report 2018/19
Schedule 2
Cost adjustors and key drivers 2019-20
Council Location DispersionIndigenous background
Alice Springs Town Council 1.12 1.03 1.18
Barkly Regional Council 1.14 1.63 1.68
Belyuen Community Government Council 1.00 1.03 1.98
Central Desert Regional Council 1.14 2.00 1.84
City of Darwin 1.00 1.03 1.07
City of Palmerston 1.00 1.03 1.11
Coomalie Community Government Council 1.00 1.29 1.24
East Arnhem Regional Council 1.27 2.00 1.94
Katherine Town Council 1.03 1.03 1.22
Litchfield Council 1.00 1.13 1.10
MacDonnell Regional Council 1.15 2.00 1.82
Roper Gulf Regional Council 1.13 2.00 1.80
Tiwi Islands Regional Council 1.12 1.42 1.89
Victoria Daly Regional Council 1.06 1.55 1.65
Wagait Shire Council 1.00 1.03 1.09
West Arnhem Regional Council 1.09 1.55 1.77
West Daly Regional Council 1.10 1.29 1.91
* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
Northern Territory Grants Commission Annual Report 2018/19 — 21
Cou
ncil
Seal
edG
rave
lFo
rmed
Unf
orm
edC
ycle
pat
hsTo
tal r
oad
leng
ths
(km
)C
ounc
il ar
ea
(sq.
km)
Alic
e Sp
ring
s To
wn
Cou
ncil
205.
090
11.6
001.
310
0.00
026
.710
244.
710
327.
43
Bar
kly
Reg
iona
l Cou
ncil
67.8
758.
460
64.9
6140
8.93
96.
220
556.
456
322
693.
27
Bel
yuen
Com
mun
ity G
over
nmen
t Cou
ncil
2.35
00.
000
14.0
0067
.700
0.00
084
.050
41.6
0
Cen
tral
Des
ert R
egio
nal C
ounc
il38
.775
140.
800
282.
360
1 30
7.40
50.
000
1 76
9.34
028
2 08
9.76
City
of D
arw
in
465.
230
0.00
00.
000
0.00
065
.050
530.
280
141.
75
City
of P
alm
erst
on22
0.00
00.
000
0.00
00.
000
105.
400
325.
400
56.4
0
Coo
mal
ie C
omm
unity
Gov
ernm
ent C
ounc
il86
.236
77.5
9427
.720
0.00
02.
960
194.
510
1 51
2.14
East
Arn
hem
Reg
iona
l Cou
ncil
75.7
9032
2.49
066
.630
506.
250
2.06
097
3.22
033
302
.42
Kat
heri
ne T
own
Cou
ncil
146.
090
2.40
00.
000
9.44
016
.600
174.
530
7 42
1.00
Litc
hfiel
d C
ounc
il62
6.76
086
.730
4.17
02.
890
7.11
072
7.66
03
072.
37
Loca
l Gov
ernm
ent A
ssoc
iatio
n of
the
NT
10.5
6043
4.00
041
9.00
01
233.
000
0.00
02
096.
560
N/A
Mac
Don
nell
Reg
iona
l Cou
ncil
51.7
5715
1.60
324
8.53
61
112.
307
0.00
01
564.
203
268
784.
20
Rop
er G
ulf R
egio
nal C
ounc
il79
.753
264.
216
120.
120
475.
851
0.00
093
9.94
018
5 17
5.81
Tiw
i Isl
ands
Reg
iona
l Cou
ncil
38.0
7922
1.28
929
4.26
529
1.65
90.
000
845.
292
7 50
0.84
Vict
oria
Dal
y R
egio
nal C
ounc
il73
.705
190.
698
36.2
8431
.690
2.90
033
5.27
715
3 47
4.55
Wag
ait S
hire
Cou
ncil
12.7
350.
000
0.00
00.
000
4.00
016
.735
5.68
Wes
t Arn
hem
Reg
iona
l Cou
ncil
59.1
7134
0.73
218
4.91
663
6.91
310
.230
1 23
1.96
249
698
.26
Wes
t Dal
y R
egio
nal C
ounc
il31
.769
288.
756
197.
237
327.
850
0.00
084
5.61
214
100
.45
TOTA
L 2
291.
725
2 54
1.36
81
961.
509
6 41
1.89
424
9.24
013
455
.737
1 32
9 39
7.93
Schedule 3
Road lengths 2019-20
*Fig
ures
hav
e be
en r
ound
ed a
nd d
iscr
epan
cies
may
occ
ur b
etw
een
tota
ls a
nd th
e su
ms
of th
e co
mpo
nent
item
s.
22 –Northern Territory Grants Commission Annual Report 2018/19
Schedule 4
Reconciliation of local government income and expenditure
Reconciliation of actual revenue and expenditure as supplied by local governing bodies 2017-18
Actual revenue 2017-18 $
Rates and annual charges 183 163 933
Fines and penalties 1 784 108
Grants and subsidies 264 208 172
Fuel rebate 453 047
User fees and charges 26 073 789
Interest income 8 143 619
Profit on sale of assets 683 264
Other current revenue (n.e.c) 45 862 978
Other capital revenue 901 702
Assets acquired without cost or below fair value
94 313 990
Total actual revenue 2017-18 $625 588 602
* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
Actual expenditure 2017-18 $
Employee expenses 190 478 661
Materials and contracts 161 171 698
Depreciation 91 562 322
Bad debts 781 910
Current transfers expenses 1 446 849
Interest 379 962
Other expenses 59 134 510
Total actual expenditure 2017-18 $504 955 912* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
Identified local government revenue
$
General rates-municipal levied 119 686 646
Domestic waste 30 871 742
Garbage other 16 360 537
Regional and shire council rates 19 800 578
Parking 999 915
Interest 8 143 619
Total identified local government revenue
$195 863 037
* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
Identified local government expenditure
$
General public service 115 890 289
Public order and safety 31 906 811
Economic affairs 48 097 212
Environment protection 17 762 454
Housing and community amenities
47 388 597
Health 2 431 294
Recreation culture and religion 52 191 081
Education 508 326
Social protection 12 630 036
Total identified local government expenditure
$328 806 100
* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
Balanced budget approach used for the 2019-20 allocations $
Identified local government revenue 195 863 037
50% Roads to Recovery grants 2018-19 2 558 632
Library grants 2018-19 4 633 202
Road grants 2018-19 16 111 966
Budget term 109 639 263
Total revenue $328 806 100
Identified local government expenditure $328 806 100
Total expenditure $328 806 100* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
Northern Territory Grants Commission Annual Report 2018/19 — 23
Schedule 5
Actual local government income 2017-18
Cou
ncil
Mun
icip
al
rate
s (l
evie
d)D
omes
tic
was
teG
arba
ge
othe
r
Reg
iona
l and
sh
ire
coun
cil
rate
s (l
evie
d)In
tere
stP
arki
ng
rest
rict
edTo
tal
$$
$$
$$
$
Alic
e Sp
ring
s To
wn
Cou
ncil
22 4
97 5
903
687
000
2 93
9 00
00
1 26
7 00
00
30 3
90 5
90
Bar
kly
Reg
iona
l Cou
ncil
087
8 00
00
2 66
0 40
012
5 00
00
3 66
3 40
0
Bel
yuen
Com
mun
ity
Gov
ernm
ent C
ounc
il0
41 4
050
42 7
3665
084
206
Cen
tral
Des
ert R
egio
nal C
ounc
il0
1 03
9 42
80
1 53
8 77
724
1 58
80
2 81
9 79
3
City
of D
arw
in
62 9
32 2
117
253
687
13 2
80 8
460
1 97
8 25
899
9 91
586
444
917
City
of P
alm
erst
on20
913
584
7 10
6 18
60
01
152
494
029
172
264
Coo
mal
ie C
omm
unity
G
over
nmen
t Cou
ncil
026
0 40
711
2 90
594
6 36
542
633
01
362
310
East
Arn
hem
Reg
iona
l Cou
ncil
02
337
556
27 3
313
914
002
662
499
06
941
388
Kat
heri
ne T
own
Cou
ncil
6 67
5 39
11
138
563
00
388
343
08
202
297
Litc
hfiel
d C
ounc
il6
667
870
2 75
4 99
90
075
8 20
00
10 1
81 0
69
Mac
Don
nell
Reg
iona
l Cou
ncil
085
1 79
70
1 76
9 68
054
9 92
00
3 17
1 39
7
Rop
er G
ulf R
egio
nal C
ounc
il0
1 02
7 45
00
1 28
2 44
534
6 33
40
2 65
6 22
9
Tiw
i Isl
ands
Reg
iona
l Cou
ncil
052
2 74
60
1 73
6 32
124
757
02
283
824
Vict
oria
Dal
y R
egio
nal C
ounc
il0
550
400
066
9 10
512
1 64
40
1 34
1 14
9
Wag
ait S
hire
Cou
ncil
010
7 25
00
231
597
16 9
750
355
822
Wes
t Arn
hem
Reg
iona
l Cou
ncil
085
1 87
045
54
120
380
328
531
05
301
236
Wes
t Dal
y R
egio
nal C
ounc
il0
462
998
088
8 77
013
9 37
80
1 49
1 14
6
Tota
l$
119
686
646
$30
871
742
$16
360
537
$19
800
578
$8
143
619
$99
9 91
5$
195
863
037
*Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
24 –Northern Territory Grants Commission Annual Report 2018/19
Schedule 6
Actual council expenditure by function 2017-18
Cou
ncil
Econ
omic
af
fair
sEd
ucat
ion
Envi
ronm
enta
l pr
otec
tion
Gen
eral
pu
blic
se
rvic
esH
ealt
h
Hou
sing
and
co
mm
unit
y am
enit
ies
Pub
lic o
rder
an
d sa
fety
Rec
reat
ion,
cu
ltur
e an
d re
ligio
nSo
cial
pr
otec
tion
Tota
l
$$
$$
$$
$$
$$
Alic
e Sp
ring
s To
wn
Cou
ncil
2 59
9 70
04
000
5 11
6 50
017
596
500
01
310
800
1 27
2 10
07
797
500
7 90
035
705
000
Bar
kly
Reg
iona
l Cou
ncil
00
405
256
11 1
53 9
730
5 08
4 92
42
143
396
2 80
4 16
92
743
282
24 3
35 0
00
Bel
yuen
Com
mun
ity
Gov
ernm
ent C
ounc
il75
2 27
40
056
9 53
50
536
176
021
0 15
156
6 18
72
634
323
Cen
tral
Des
ert R
egio
nal C
ounc
il3
720
081
071
6 42
410
639
310
09
040
005
3 97
5 37
31
345
974
5 72
6 40
335
163
570
City
Of D
arw
in15
793
602
046
3 90
641
934
570
77 8
5923
132
032
18 1
26 1
9024
088
256
012
3 61
6 41
5
City
Of P
alm
erst
on3
279
117
05
663
285
23 5
02 9
880
1 03
4 81
884
6 96
17
037
180
2 63
541
366
984
Coo
mal
ie C
omm
unity
Gov
ernm
ent C
ounc
il1
005
701
023
2 07
293
0 46
00
109
566
60 2
2763
2 50
50
2 97
0 53
1
East
Arn
hem
Reg
iona
l Cou
ncil
8 24
3 30
80
1 17
3 19
713
477
964
04
065
483
3 33
2 25
13
549
596
5 94
3 42
339
785
222
Kat
heri
ne T
own
Cou
ncil
2 63
4 84
90
1 20
4 53
32
883
007
053
5 91
130
5 37
42
019
475
09
583
149
Litc
hfiel
d C
ounc
il19
955
779
5 80
02
758
038
4 41
6 20
80
78 3
7742
2 93
02
590
966
030
228
098
Mac
Don
nell
Reg
iona
l Cou
ncil
6 26
0 56
10
59 2
3023
215
629
558
949
1 42
0 91
11
421
793
315
200
4 65
0 57
137
902
844
Rop
er G
ulf R
egio
nal C
ounc
il1
988
352
327
629
38 9
7316
611
053
28 1
007
004
026
9 08
31
148
656
11 2
90 0
1338
445
885
Tiw
i Isl
ands
Reg
iona
l Cou
ncil
3 89
1 45
736
7 63
858
3 24
57
588
259
38 2
501
160
373
1 19
2 62
185
4 14
480
2 50
716
478
494
Vict
oria
Dal
y R
egio
nal C
ounc
il7
134
316
00
11 7
46 2
531
192
903
1 30
4 89
30
701
462
1 30
8 21
523
388
042
Wag
ait S
hire
Cou
ncil
194
279
092
228
516
528
00
00
080
3 03
5
Wes
t Arn
hem
Reg
iona
l Cou
ncil
4 21
6 50
918
879
922
944
9 52
0 27
918
7 18
14
728
888
1 18
3 10
64
099
946
1 78
9 18
426
666
916
Wes
t Dal
y R
egio
nal C
ounc
il2
015
575
57 5
2830
610
5 99
1 44
14
553
275
1 52
2 08
51
205
161
506
729
015
882
404
Tota
l$
83 6
85 4
60$
781
474
$19
460
441
$20
2 29
3 95
7$
6 63
6 51
7$
62 0
69 2
68$
35 4
96 5
66$
59 7
01 9
09$
34 8
30 3
20$
504
955
912
* Fi
gure
s ha
ve b
een
roun
ded
and
disc
repa
ncie
s m
ay o
ccur
bet
wee
n to
tals
and
the
sum
s of
the
com
pone
nt it
ems.
Northern Territory Grants Commission Annual Report 2018/19 — 25
Cou
ncil
Dom
esti
c w
aste
Gar
bage
oth
erM
unic
ipal
rat
esR
egio
nal a
nd
shir
e ra
tes
Par
king
res
tric
ted
Inte
rest
Tota
l ass
esse
d re
venu
e
$$
$$
$$
$
Alic
e Sp
ring
s To
wn
Cou
ncil
3 41
3 85
32
939
000
13 1
78 8
240
01
267
000
20 7
98 6
77
Bar
kly
Reg
iona
l Cou
ncil
951
105
00
2 67
4 90
80
125
000
3 75
1 01
2
Bel
yuen
Com
mun
ity
Gov
ernm
ent C
ounc
il22
396
00
62 9
860
6585
447
Cen
tral
Des
ert R
egio
nal C
ounc
il54
1 38
00
01
522
589
024
1 58
82
305
557
City
Of D
arw
in10
886
246
13 2
80 8
4662
084
856
099
9 91
51
978
258
89 2
30 1
20
City
Of P
alm
erst
on4
871
256
019
620
712
00
1 15
2 49
425
644
462
Coo
mal
ie C
omm
unity
Gov
ernm
ent C
ounc
il17
8 90
711
2 90
50
503
161
042
633
83
7 60
5
East
Arn
hem
Reg
iona
l Cou
ncil
1 33
0 92
527
331
03
743
123
066
2 49
95
763
878
Kat
heri
ne T
own
Cou
ncil
1 36
6 52
50
3 99
9 10
10
038
8 34
35
753
969
Litc
hfiel
d C
ounc
il3
293
460
020
803
154
00
758
200
24 8
54 8
14
Mac
Don
nell
Reg
iona
l Cou
ncil
883
011
00
2 48
3 40
10
549
920
3 91
6 33
2
Rop
er G
ulf R
egio
nal C
ounc
il95
1 75
20
02
676
728
034
6 33
43
974
814
Tiw
i Isl
ands
Reg
iona
l Cou
ncil
354
188
00
996
127
024
757
1 37
5 07
3
Vict
oria
Dal
y R
egio
nal C
ounc
il40
3 77
00
01
135
571
012
1 64
41
660
984
Wag
ait S
hire
Cou
ncil
65 3
750
018
3 86
10
16 9
7526
6 21
1
Wes
t Arn
hem
Reg
iona
l Cou
ncil
888
060
455
02
497
600
032
8 53
13
714
646
Wes
t Dal
y R
egio
nal C
ounc
il46
9 53
30
01
320
524
013
9 37
81
929
435
Tota
l$
30 8
71 7
42$
16 3
60 5
37$
119
686
646
$19
800
578
$99
9 91
5$
8 14
3 61
9$
195
863
037
* Fi
gure
s ha
ve b
een
roun
ded
and
disc
repa
ncie
s m
ay o
ccur
bet
wee
n to
tals
and
the
sum
s of
the
com
pone
nt it
ems.
Schedule 7
Assessed 2017-18 revenue for 2019-20 allocations
26 –Northern Territory Grants Commission Annual Report 2018/19
Schedule 8
Summary standardised revenue 2017-18 used for 2019-20 allocations
Cou
ncil
Ass
esse
d N
T av
erag
e re
venu
e20
17-1
8 R
oads
to
Rec
over
y20
17-1
8 Li
brar
y gr
ant
2017
-18
Roa
ds g
rant
Bud
get t
erm
Tota
l st
anda
rdis
ed
reve
nue
$$
$$
$$
Alic
e Sp
ring
s To
wn
Cou
ncil
20 7
98 6
7716
2 80
563
5 31
496
1 64
412
124
109
34 6
82 5
49
Bar
kly
Reg
iona
l Cou
ncil
3 75
1 01
246
265
190
315
459
498
3 37
7 79
57
824
886
Bel
yuen
Com
mun
ity G
over
nmen
t Cou
ncil
85 4
475
656
033
289
79 5
3720
3 92
8
Cen
tral
Des
ert R
egio
nal C
ounc
il2
305
557
146
655
109
068
887
628
1 92
2 68
15
371
589
City
of D
arw
in89
230
120
312
058
1 47
8 58
81
913
966
38 6
61 8
9113
1 59
6 62
3
City
of P
alm
erst
on25
644
462
134
595
609
200
914
487
17 2
99 9
9344
602
737
Coo
mal
ie C
omm
unity
Gov
ernm
ent C
ounc
il 83
7 60
569
223
49 2
4347
9 31
363
5 37
72
070
761
East
Arn
hem
Reg
iona
l Cou
ncil
5 76
3 87
819
9 55
334
2 86
31
257
291
4 72
6 70
612
290
291
Kat
heri
ne T
own
Cou
ncil
5 75
3 96
910
7 54
036
9 86
664
0 86
54
853
138
11 7
25 3
78
Litc
hfiel
d C
ounc
il24
854
814
432
358
225
023
2 62
7 47
911
696
540
39 8
36 2
15
Mac
Don
nell
Reg
iona
l Cou
ncil
3 91
6 33
216
9 02
793
448
1 01
1 31
93
135
966
8 32
6 09
2
Rop
er G
ulf R
egio
nal C
ounc
il3
974
814
136
667
164
071
1 08
6 33
23
380
094
8 74
1 97
8
Tiw
i Isl
ands
Reg
iona
l Cou
ncil
1 37
5 07
316
5 76
094
002
984
457
1 25
7 88
03
877
172
Vict
oria
Dal
y R
egio
nal C
ounc
il1
660
984
145
448
42 5
4470
6 57
11
433
965
3 98
9 51
3
Wag
ait S
hire
Cou
ncil
266
211
9 46
70
55 7
6223
2 17
556
3 61
5
Wes
t Arn
hem
Reg
iona
l Cou
ncil
3 71
4 64
620
1 29
412
8 90
71
199
519
3 15
3 89
68
398
262
Wes
t Dal
y R
egio
nal C
ounc
il1
929
435
114
261
100
750
892
546
1 66
7 51
94
704
511
TOTA
L$
195
863
037
$2
558
632
$4
633
202
$16
111
966
$10
9 63
9 26
3$
328
806
100
* Fi
gure
s ha
ve b
een
roun
ded
and
disc
repa
ncie
s m
ay o
ccur
bet
wee
n to
tals
and
the
sum
s of
the
com
pone
nt it
ems.
Northern Territory Grants Commission Annual Report 2018/19 — 27
Schedule 9
Standardised 2017-18 expenditure used for 2019-20 allocations
Coun
cil
Econ
omic
af
fair
sEd
ucat
ion
Envi
ronm
enta
l pr
otec
tion
Gen
eral
pu
blic
se
rvic
esH
ealt
h
Hou
sing
and
co
mm
unity
am
eniti
esPu
blic
ord
er
and
safe
ty
Rec
reat
ion,
cu
ltur
e an
d re
ligio
nSo
cial
pr
otec
tion
Tota
l st
anda
rdis
ed
expe
nditu
re
$$
$$
$$
$$
$$
Alic
e Sp
ring
s To
wn
Cou
ncil
4 89
2 71
947
769
1 96
4 20
511
917
015
228
478
4 45
3 29
32
998
409
5 30
9 17
01
186
894
32 9
97 9
53
Bar
kly
Reg
iona
l Cou
ncil
2 13
2 98
227
686
547
230
4 74
2 99
713
2 42
22
581
051
1 73
7 82
62
314
534
687
903
14 9
04 6
32
Bel
yuen
Com
mun
ity
Gov
ernm
ent C
ounc
il 28
202
505
12 8
8613
1 33
42
417
47 1
1331
721
30 6
0312
557
297
337
Cen
tral
Des
ert
Reg
iona
l Cou
ncil
1 47
4 58
419
640
311
490
2 95
6 89
293
937
1 83
0 93
21
232
769
1 60
0 09
648
7 98
110
008
321
City
of D
arw
in13
708
645
117
860
6 26
3 54
134
705
451
563
719
10 9
87 4
987
397
898
14 8
75 4
782
928
394
91 5
48 4
84
City
of P
alm
erst
on6
134
192
55 2
122
802
740
16 0
93 5
3426
4 07
75
147
157
3 46
5 58
86
656
313
1 37
1 82
341
990
637
Coo
mal
ie C
omm
unity
G
over
nmen
t Cou
ncil
285
316
2 96
310
2 93
665
9 57
414
170
276
193
185
961
309
601
73 6
111
910
325
East
Arn
hem
Reg
iona
l Cou
ncil
3 86
8 88
252
505
765
765
7 64
4 51
425
1 13
04
894
803
3 29
5 67
84
198
188
1 30
4 56
626
276
031
Kat
heri
ne T
own
Cou
ncil
1 78
3 79
018
076
786
248
4 95
2 77
586
455
1 68
5 10
81
134
585
1 93
5 62
044
9 11
612
831
774
Litc
hfiel
d C
ounc
il4
572
331
41 1
351
894
935
10 7
24 4
3419
6 74
53
834
773
2 58
1 95
84
961
512
1 02
2 04
629
829
868
Mac
Don
nell
Reg
iona
l Cou
ncil
2 41
0 54
731
873
508
052
4 77
3 00
115
2 44
52
971
320
2 00
0 59
42
615
724
791
918
16 2
55 4
75
Rop
er G
ulf R
egio
nal C
ounc
il2
568
419
33 7
4254
7 60
35
076
766
161
384
3 14
5 56
12
117
910
2 78
7 03
483
8 35
717
276
775
Tiw
i Isl
ands
Reg
iona
l Cou
ncil
689
032
10 1
6620
3 78
71
987
062
48 6
2394
7 72
463
8 10
474
7 68
025
2 58
85
524
766
Vict
oria
Dal
y R
egio
nal C
ounc
il81
4 80
510
627
232
314
1 97
5 17
850
827
990
677
667
024
884
159
264
036
5 88
9 64
6
Wag
ait S
hire
Cou
ncil
82 3
2472
137
614
211
326
3 44
667
173
45 2
2889
331
17 9
0355
5 06
6
Wes
t Arn
hem
Reg
iona
l Cou
ncil
1 83
1 37
825
245
510
957
4 67
6 39
612
0 74
42
353
431
1 58
4 56
91
987
258
627
238
13 7
17 2
15
Wes
t Dal
y R
egio
nal C
ounc
il81
9 06
512
602
270
152
2 66
2 03
960
273
1 17
4 79
079
0 98
888
8 78
131
3 10
66
991
796
Tota
l$4
8 09
7 21
2$5
08 3
26$1
7 76
2 45
4$1
15 8
90 2
89$2
431
294
$47
388
597
$31
906
811
$52
191
081
$12
630
036
$328
806
100
* Fi
gure
s ha
ve b
een
roun
ded
and
disc
repa
ncie
s m
ay o
ccur
bet
wee
n to
tals
and
the
sum
s of
the
com
pone
nt it
ems.
28 –Northern Territory Grants Commission Annual Report 2018/19
* Figures have been rounded and discrepancies may occur between totals and the sums of the component items.
Schedule 10
National share of financial assistance grants 2019-20
State/Territory General purpose $
Share %
Local road component
$Share
%Total
$Share
%
NSW 561 526 802 31.96 226 201 773 29.01 787 728 575 31.05
VIC 455 581 222 25.93 160 736 232 20.62 616 317 454 24.30
QLD 352 558 298 20.07 146 078 390 18.74 498 636 688 19.66
WA 181 901 718 10.35 119 210 077 15.29 301 111 795 11.87
SA 121 611 213 6.92 42 847 209 5.50 164 458 422 6.48
TAS 37 081 045 2.11 41 316 093 5.30 78 397 138 3.09
NT 17 180 555 0.98 18 263 231 2.34 35 443 786 1.40
ACT 29 604 907 1.68 24 999 908 3.21 54 604 815 2.15
Total $1 757 045 760 100 $779 652 913 100 $2 536 698 673 100
Schedule 11
Visits/Public Hearings to local governing bodies
Council Service delivery centre 2018-19 2017-18 2016-17 2015-16
Darwin City Council Darwin
Tiwi Islands Regional Council
Wurrumiyanga
Pirlangimpi
Milikapiti
City of Palmerston Palmerston
Belyuen Community Government Council
Belyuen 11 Sep 18
Coomalie Community Government Council
Coomalie 12 Sep 18
Wagait Shire Council Wagait/Cox Peninsula 11 Sep 18
Litchfield Council Litchfield
West Arnhem Regional Council
Shire Office (Jabiru) 30 Nov 18Maningrida 21 May 19Gunbalanya 28 Nov 18Minjilang 29 Nov 18Warruwi 29 Nov 18
Northern Territory Grants Commission Annual Report 2018/19 — 29
Council Service delivery centre 2018-19 2017-18 2016-17 2015-16
East Arnhem Regional Council
Shire Office (Nhulunbuy)
Galiwin’ku
Gapuwiyak
Gunyangara (Marngarr)
Milyakburra
Milingimbi
Ramingining
Yirrkala
Umbakumba
Angurugu
26 Nov 17
Victoria Daly Regional Council
Shire Office (Katherine)
Daly River
Daguragu/Kalkarindji
Timber Creek
Yarralin
Pine Creek
07 Oct 15
06 Oct 15
09 Oct 15
08 Oct 15
08 Oct 15
07 Oct 15
West Daly Regional Council
Nganmarriyanga
Peppimenarti
Wadeye
05 Oct 15
06 Oct 15
05 Oct 15
Katherine Town Council
Katherine
Binjari
Roper Gulf Regional Council
Shire Office (Katherine)
Borroloola
Numbulwar
Barunga
Wugularr (Beswick)
Bulman
Manyallaluk (Eva Valley)
Ngukurr
Mataranka
Jilkminggan
06 May 16
05 May 16
05 May 16
04 May 16
04 May 16
06 May 16
04 May 16
05 May 16
03 May 16
03 May 16
Schedule 11 (cont.)
Visits/Public Hearings to local governing bodies
30 –Northern Territory Grants Commission Annual Report 2018/19
Council Service delivery centre 2018-19 2017-18 2016-17 2015-16
Barkly Regional Council
Shire Office (Tennant Creek)
Elliott
Ampilatwatja
Ali Curung
Alpurrurulam
Arlparra (Utopia)
14 Jun 18
14 Jun 18
13 Jun 18
15 Jun 18
Alice Springs Town Council
Alice Springs
Central Desert Regional Council
Shire Office (Alice Springs)
Nyrippi
Lajamanu
Yuendumu
Willowra
Ti-Tree
Laramba
Engawala
Atitjere (Harts Range)
Yuelamu
24 Aug 18
22 Aug 18
24 Aug 18
20 Aug 18
20 Aug 18
23 Aug 18
21 Aug 18
21 Aug 18
23 Aug 18
Schedule 11 (cont.)
Visits/Public Hearings to local governing bodies
Northern Territory Grants Commission Annual Report 2018/19 — 31
32 –Northern Territory Grants Commission Annual Report 2018/19
Northern Territory Grants Commission Annual Report 2018/19 — 33
Council Service delivery centre 2018-19 2017-18 2016-17 2015-16
MacDonnell Regional Council
Shire Office (Alice Springs)
Areyonga
Haasts Bluff
Imanpa
Docker River
Hermannsburg (Ntaria)
Papunya
Kintore
Wallace Rockhole
Amoonguna
Finke
Santa Teresa
Titjikala
Mount Liebig
22 Jul 16
19 Jul 16
21 Jul 16
20 Jul 16
19 Jul 16
21 Jul 16
22 Jul 16
18 Jul 16
18 Jul 16
22 Jul 16
20 Jul 16
Schedule 11 (cont.)
Visits/Public Hearings to local governing bodies
34 –Northern Territory Grants Commission Annual Report 2018/19
APPENDIX A
National principles for the allocation of general purpose and local road grants
A. The national principles relating to the allocation of general purpose grants payable under section 6 of the Local Government (Financial Assistance) Act 1995 (the Act) among local governing bodies are as follows:
1. Horizontal equalisation
General purpose grants will be allocated to all local governing bodies as far as practicable on a full horizontal equalisation basis as defined by the Act. This is a basis that ensures that each local governing body in the state/territory is able to function by reasonable effort at a standard not lower than the average standard of other local governing bodies in the state. It takes account of differences in the expenditure required by those local governing bodies in the performance of their functions and in the capacity of those local governing bodies to raise revenue.
2. Effort neutrality
An effort or policy neutral approach will be used in assessing the expenditure requirement and revenue raising capacity of each local governing body. This means that, as far as possible, policies of individual local governing bodies in terms of expenditure and revenue effort, will not affect the grant determination.
3. Minimum grant
The minimum general purpose grant allocation for a local governing body in a year will not be less than the amount to which the local governing body would be eligible to receive if 30 per cent of the total amount of general purpose grants to which the state/territory is entitled
under section 9 of the Act in respect of the year were allocated among local governing bodies in the state/territory on a per capita basis.
4. Other grant support
Other relevant grant support provided to local governing bodies to meet any of the expenditure needs assessed should be taken into account using an inclusion approach.
5. Aboriginals and Torres Strait Islanders
Financial assistance shall be allocated to councils in a way which recognises the needs of Aboriginals and Torres Strait Islanders within their boundaries.
6. Council amalgamation
Where two or more local governing bodies are amalgamated into a single body the general purpose grant provided to the new body for each of the four years following amalgamation should be the total of the amounts that would have been provided to the former bodies in each of those years if they had remained separate entities.
B. The national principle relating to the allocation of the amounts payable under Section 12 of the Act (the identified road component of the financial assistance grants) among local governing bodies is as follows:
1. Identified road component
The identified road component of the financial assistance grants should be allocated to local governing bodies as far as practicable on the basis of the relative needs of each local governing body for roads expenditure and to preserve its road assets. In assessing road needs relevant considerations include length type and usage of roads in each local governing area.
Appendices
Northern Territory Grants Commission Annual Report 2018/19 — 35
APPENDIX B
Methodology and formula factors
Introduction
The Northern Territory Grants Commission’s methodology conforms to the requirement for horizontal equalisation as set out in section 6 (3) of the Australian Government Local Government (Financial Assistance) Act 1995.
The Commission in assessing relative need for allocating general purpose funding uses the balanced budget approach to horizontally equalise based on the formula:
Assessed expenditure need - assessed revenue capacity = assessed equalisation requirement.
The methodology calculates standards by applying cost adjustors and average weightings to assess each local government’s revenue raising capacity and expenditure need. The assessment is the Commission’s measure of each local government’s ability to function at the average standard in accordance with the national principles. Details regarding the national principles are at Appendix A.
Population
From 2008-09 the Commission resolved to use the latest ABS estimated resident population figures and then adjust the figures to align with the population total advised to Canberra from Northern Territory Treasury. The Northern Territory’s funding is based on this total population figure. The same rationale was used for the 2019-20 calculations.
Revenue raising capacity
As the ownership of the land on which many communities are located is vested in land trusts established pursuant to the Australian Government Aboriginal Lands Rights (Northern Territory) Act 1976 it is not for all intents and purposes feasible to use a land valuation system solely as the means for assessing revenue raising capacity.
The collection of actual accurate financial data through the Commission’s annual returns enabled a number of revenue categories to be introduced including municipal and regional council rates, domestic waste and interest.
In addition, to accord with the national principles other grant support to local governing bodies by way of the Roads to Recovery, library and local roads grants are recognised in the revenue component of the methodology. In the case of recipients of the Roads to Recovery grants 50 per cent of the grant was included. Recipients of library grants and local roads grants have the total amount of the grant included.
The Commission considers that given unique circumstances within the Territory this overall revenue raising capacity approach provides a reasonable indication of a council’s revenue raising capacity.
For the 2019-20 allocations financial data in respect of the 2017-18 financial year was used.
36 –Northern Territory Grants Commission Annual Report 2018/19
Expenditure needs
The assessment of standard expenditure is based on the Territory average per capita expenditure within the expenditure categories to which cost adjustors reflecting the assessed disadvantage of each local government are applied.
The Commission currently uses the nine expenditure categories in accordance with the Australian Bureau of Statistics Local Government Purpose Classifications. In the 2012-13 grant calculations an additional expenditure category was created (Regional Centre Recognition) to acknowledge the financial drains on municipal councils caused by urban drift. This expenditure category had been used in all subsequent grant processes with the exception of the 2016-17 and 2017-18 calculations where the Commission quarantined a pool totaling $200 000 and subsequently allocated $135 000 and $65 000 to the Alice Springs and Katherine councils respectively.
When the grants were calculated in 2018-19 using the estimated resident population data from the Australian Bureau of Statistics 2016 census, a number of councils had population decreases. The previous quarantined parameter applied in 2016-17 and 2017-18 to the Katherine and Alice Springs councils was difficult to justify in the 2018-19 calculations when other councils would have received reductions in funding that were difficult to absorb. To mitigate this, the Commission resolved to redistribute the $200 000 quarantined amount to buffer funding reductions across all councils as a result of the population decreases. Consequently, the Commission implemented a 5% loss assist factor into the 2018-19 methodology.
The previously quarantined parameter no longer supports the rational for its implementation, particularly whilst councils populations continue to decrease.
When the general purpose grants were calculated for 2019-20 incorporating the latest estimated resident populations derived from the Australian Bureau of Statistics 2016 census, all councils with the exception of Palmerston and Litchfield, experienced population decreases.
Therefore, similar to 2018-19, the Commission again implemented a 5% loss assist factor into the 2019-20 methodology. The rationale for implementing the loss assist factor was that it was only applied to councils that stood to receive a loss greater than 5% in grant funding. A total of 6 councils benefited from the loss assist parameter which totalled $389 224.
Cost adjustors
The Commission uses cost adjustors to reflect a local government’s demographics, geographical location, its external access and the area over which it is required to provide local government services. All these influence the cost of service delivery. The cost adjustors used by the Commission for 2019-20 are shown at Schedule 2. There are three cost adjustors being: location, dispersion and Aboriginality.
Minimum grants
For most local governments, the assessed expenditure needs exceed the assessed revenue capacity, meaning there is an assessed need. In four cases, assessed revenue capacity is greater than assessed expenditure need, meaning that there is no assessed need. However, as the legislation requires that local governments cannot get less than 30 per cent of what they would have been allocated had the funding been distributed solely on the basis of population, four local government councils still receive a grant, or what is referred to as the minimum grant.
Northern Territory Grants Commission Annual Report 2018/19 — 37
Formula
1. Revenue component
All councils:
Assessed revenue raising capacity = Total identified local government revenue
Total local government revenue = Assessed NT average revenue + other grant support + budget term
Where
Revenue category = Domestic waste, garbage, Municipal rates, Regional and Shire rates, special rates parking, special rates other, fines and interest
Domestic waste = Per capita
Garbage other = Actual
Municipal council rates = Average rate
Regional and Shire rates = Per capita
Interest = Actual
State income by revenue category 2017-18
= Actual state local government gross income
Actual state local government gross income 2017-18
= $195 863 037
Other grant support = Roads to Recovery grant 2018-19 50%, library grant 2018-19 and roads grant 2018-19
Budget term = Population x per capita amount
Total local government revenue for 2019-20 allocations
= $328 806 100
38 –Northern Territory Grants Commission Annual Report 2018/19
2. Expenditure needs
Total local government expenditure of $328 806 100 apportioned over each expenditure component.
a. General public services ($115 890 289)
Community population/Northern Territory population x general public services expenditure x Aboriginality
b. Public order and safety ($31 906 811)
Community population/Northern Territory population x public order and safety expenditure x (location + dispersion + Aboriginality)
c. Economic affairs ($48 097 212)
Community population/Northern Territory population x economic affairs expenditure x (location + dispersion)
d. Environmental protection ($17 762 454)
Community population/Northern Territory population x environmental protection expenditure
e. Housing and community amenities ($47 388 597)
Community population/Northern Territory population x housing and community amenities expenditure x (location + dispersion + Aboriginality)
f. Health ($2 431 294)
Community population/Northern Territory population x health expenditure x (location + dispersion + Aboriginality)
g. Recreation, culture and religion ($52 191 081)
Community population/Northern Territory population x recreation culture and religion expenditure x (location + dispersion)
h. Education ($508 326)
Community population/Northern Territory population x education expenditure x (location + dispersion + Aboriginality)
i. Social protection ($12 630 036)
Community population/Northern Territory population x social protection expenditure x (location + dispersion + Aboriginality)
Northern Territory Grants Commission Annual Report 2018/19 — 39
3. Local road grant funding
To determine the local road grant the Commission applies a weighting to each council by road length and surface type. These weightings are:
Road type Weighting
Sealed 27.0
Gravel 12.0
Cycle path 10.0
Formed 7.0
Unformed 1.0
The general purpose location factor is also applied to recognise relative isolation.
Application of cost adjustors
Expenditure category Population Location Dispersion Aboriginality
Housing and community amenities
Public order and safety
Environmental protection
General public services
Social protection
Education
Health
Recreation, cultural and religion
Economic affairs
(Shaded areas indicate when cost adjustor applies)
40 –Northern Territory Grants Commission Annual Report 2018/19
Appendix C
The Australian Classification of Local Government (ACLG)
Step 1 Step 2 Step 3 Identifiers Category
URBAN (U) Capital City (CC) UCC
Population more than 20 000
Metropolitan developed (D)
Part of an urban centre of more than 1 000 000 or population density more than 600/sq km
Small (S)
Medium (M)
Large (L)
Very Large (V)
Up to 30 000
30 001-70 000
70 001-120 000
more than 120 000
UDS
UDM
UDL
UDV
or
Population density more than 30 persons per sq km
Regional Towns/City (R)
Part of an urban centre with population less than 1 000 000 and predominantly urban in nature
Small (S)
Medium (M)
Large (L)
Very Large (V)
Up to 30 000
30 001-70 000
70 001-120 000
more than 120 000
URS
URM
URL
URV
or
90% or more of LGA population is urban
Fringe (F)
A developing LGA on the margin of a developed or regional urban centre
Small (S)
Medium (M)
Large (L)
Very Large (V)
Up to 30 000
30 001-70 000
70 001-120 000
more than 120 000
UFS
UFM
UFL
UFV
Rural (R)
An LGA with population less than 20 000
Significant growth (SG)
Average annual population growth more than 3% population more than 5 000 and not remote
Not applicable RSG
and
Population density less than 30 persons per sq km
Agricultural (A) Small (S)
Medium (M)
Large (L)
Very Large (V)
Up to 2 000
2 001-5 000
5 001-10 000
10 001-20 000
RAS
RAM
RAL
RAV
and
Less than 90% of LGA population is urban
Remote (T) Extra Small (X)
Small (S)
Medium (M)
Large (L)
Up to 400
401-1 000
1 001-3 000
3 001-20 000
RTX
RTS
RTM
RTL
Northern Territory Grants Commission Annual Report 2018/19 — 41
Appendix D
Northern Territory local governments by classification
Council ACLG Classification
Alice Springs Town Council URS
Barkly Regional Council RTL
Belyuen Community Government Council RTX
Central Desert Regional Council RTL
City of Darwin UCC
City of Palmerston URM
Coomalie Community Government Council RTM
East Arnhem Regional Council RTL
Katherine Town Council URS
Litchfield Council UFS
MacDonnell Regional Council RTL
Roper Gulf Regional Council RTL
Tiwi Islands Regional Council RTM
Victoria Daly Regional Council RTL
Wagait Shire Council RTS
West Arnhem Regional Council RTL
West Daly Regional Council RTL
42 –Northern Territory Grants Commission Annual Report 2018/19
Appendix E
Northern Territory map of local government areas
Northern Territory Grants Commission Annual Report 2018/19 — 43
Appendix F
Auditor-General Independent Auditor’s Report to the Minister for Local Government, Housing and Community Development Northern Territory Grants Commission Year Ended 30 June 2019
44 –Northern Territory Grants Commission Annual Report 2018/19
Northern Territory Grants Commission Annual Report 2018/19 — 45
46 –Northern Territory Grants Commission Annual Report 2018/19
Northern Territory Grants Commission Annual Report 2018/19 — 47
Appendix G
Auditor-General Independent Auditor’s Report to the Chief Executive of the Department of Local Government, Housing and Community Development on the Statement of Payments Made to Local Governing Bodies by the Northern Territory during the year 1 July 2018 to 30 June 2019.
48 –Northern Territory Grants Commission Annual Report 2018/19
Northern Territory Grants Commission Annual Report 2018/19 — 49
52 –Northern Territory Grants Commission Annual Report 2018/19
The.painting.depicts.the.role.of.the.Grants.Commission.as.a.transmitter.of.information,.policy.and.funding.recommendations..In.the.painting.the.members.of.the.Grants.Commission.are.depicted.by.the.larger.black.horseshoe.shapes..They.are.sitting.facing.the.members.of.Local.Government.Councils,.represented.by.the.smaller.black.horseshoes.in.the.north,.south,.east.and.west.directions..
As.can.be.seen.the.Grants.Commission.role.is.represented.by.two.larger.horseshoe.shapes.joined.together..This.representation.shows.the.Grants.Commission.facing.Councillors.on.the.one.hand,.and.the.Northern.Territory.and.Federal.Governments.(the.centre.circle.with.the.white.horseshoe.shape).
on.the.other..The.smaller.oblong.shapes.between.the.Commission.and.the.Governments.are.provided.by.the.artist.to.show.the.movement.of.the.Commission.visiting.Councils.and.taking.reports.back.to.central.government..
The.larger.oblong.shapes.between.the.Council.groupings.represent.two.areas.of.land..The.upper.ones.depict.native.title.area.boundaries,.and.the.lower.ones.depict.Local.Government.area.boundaries..The.background.is.the.‘country’.within.which.all.of.these.events.take.place..
Painting.by.Cr..Francis.Kelly,..Past.Member.of.NT.Grants.Commission
Account.above.is.based.on.a.conversation.with.Cr..Kelly
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