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Notice of Meeting

Notice is hereby given that a meeting of the LGA Board will be held on

Thursday 18 May 2017 at 9.00am

Alexandrina Council

11 Cadell Street, Goolwa

Matt Pinnegar

Chief Executive Officer

12 May 2017

For further information about the LGA Board, click here

http://www.lga.sa.gov.au/Board

ECM 647895 LGA Board Meeting Agenda & Attachments 16 March 2017

Board Membership

LGA President

Adelaide Metropolitan Zone

Mayor Lorraine Rosenberg Onkaparinga

Immediate Past President

Murraylands and Riverland Zone

Mayor Dave Burgess Mid Murray

Zone / Region Representatives and Proxies


Mayor Gillian Aldridge Salisbury

Mayor Karen Redman Gawler

Deputy Member: Cr Mikki Bouchee Holdfast Bay

Mayor Robert Bria Norwood Payneham & St Peters

Mayor Kevin Knight Tea Tree Gully

Deputy Member: Mayor Angela Evans Charles Sturt

Cr Sue Clearihan* Adelaide City

Mayor David O’Loughlin Prospect

Deputy Member: Cr Arthur Mangos West Torrens

Mayor David Parkin* Burnside

Mayor Glenn Spear Mitcham

Deputy Member: Mayor Bill Spragg Adelaide Hills

Central Zone

Mayor Denis Clark Northern Areas

Mayor Peter Mattey Goyder

Deputy Member: Cr Bim Lange Barossa

Limestone Coast Zone Mayor Erika Vickery* Naracoorte Lucindale

Deputy Member: Mayor Richard Sage Grant

ECM 647895 LGA Board Meeting Agenda & Attachments 16 March 2017

Southern & Hills Zone

Mayor Keith Parkes Alexandrina

Deputy Member: Mayor Glen Rowlands

Yankalilla

Spencer Gulf Cities Zone

Mayor Sam Johnson Port Augusta

Deputy Member: Mayor John Rohde Port Pirie

Eyre Peninsula Zone Mayor Bruce Green Port Lincoln

Deputy Member: Mayor Sam Telfer Tumby Bay

Murraylands and Riverland Zone

Mayor Peter Hunt* Berri Barmera

Mayor Neville Jaensch Coorong

Deputy Member: Mayor Brenton Lewis

Murray Bridge

*LGA Vice Presidents

Invited Observers

Metropolitan CEO representative of the Metropolitan LG Group Executive

Kiki Magro CEO, Walkerville

Local Government Professionals Australia (SA Div) – President

Mark Dowd CEO, Onkaparinga

Agenda

Item Page

1. Welcome, Present & Apologies

1.1 Present

1.2 Apologies

Mayor Bria (Metro), Mayor Angela Evans (Metro), Deputy Mayor Arthur Mangos (Metro), Mayor David O’Loughlin (Metro), Mayor Sam Telfer (Eyre Peninsula)

1.3 Voting Deputy Board Members

1.4 Oath of Office for New Members

2. Minutes of Previous Meeting

2.1 Minutes of meeting 6

2.2 Resolutions and actions 24

3. LGA Updates

3.1 Report from the LGA President 37

3.2 ALGA Update 41

3.3 Report from the LGA CEO 49

4. Reports from Bodies Established Pursuant to the LGA Constitution

4.1 LGA Executive Committee 53

4.2 Metropolitan Local Government Group 60

4.3 South Australian Regional Organisation of Councils 61

5. Invited Guest Speakers

Nil

6. Motions on Notice

Nil

7. Reports for Discussion

7.1 Item left blank intentionally

7.2 Information about Candidates Elected Unopposed 62

7.3 Proposal to Change Voting Method in Local Government Elections 64

7.4 Draft Heads of Agreement between EPA and LGA 66

7.5 Review of the State NRM Plan 77

7.6 Vegetation Management Around Powerlines – Regulatory Amendments 95

7.7 LG Defined Benefit Scheme – Salarylink Superannuation Fund (SSF) 97

7.8 Local Government Research & Development Scheme 101

7.9 LGA Subscription Formula – Additional Review 110

7.10 Draft 2017/18 LGA Annual Business Plan and Budget 150

7.11 LGA Workers Compensation Scheme Update 201

7.12 LGA Mutual Liability Scheme Update 207

8. Nominations to Outside Bodies

8.1 South Australian Public Health Council 210

9. Confidential Reports (distributed separately)

9.1

9.2

9.3

9.4 215

9.5 216

9.6 217

9.7

Confidential Previous Minutes – 16 March 2017

Confidential Minutes of LGA Executive Committee – 27 April 2017

LGA Audit Committee Confidential Minutes – Refer late item 10.4

Public Lighting Update – Grounds for moving into confidence

Application for Litigation Support from City of Adelaide

- Grounds for moving into confidence

Renewal of Deed of Indemnity between the Treasurer of SA and the LGA - Grounds for moving into confidence

Local Government Auditing Processes – Grounds for entering confidence 218

10. Late Reports (to be distributed separately)

10.1 Renegotiation of Insurances

10.2 Premier’s Business Mission to China

10.3 LGA Audit Committee

10.4 LGA Audit Committee – Confidential Minutes

10.5 LGA Audit Committee evaluation outcome and recommended changes if any

10.6 LGA Procurement Review

11. Questions With / Without Notice

12. Next Meeting

The next meeting of the LGA Board will be held on 20 July 2017 at Local Government

House, 148 Frome Street, Adelaide, commencing at 9:15am.

LGA Board Meeting Agenda - 18 May 2017 - of 218

214

213

Local Government Association of South Australia

2.1 Minutes of the meeting held on 16 March 2017

Minutes of Previous Meeting

From: Jacqui Kelleher, Manager Executive Services

Meeting LGA Board 18 May 2017

ECM: 645953 Attachment: 648897

Recommendation

That the LGA Board confirms the minutes of the LGA Board meeting held on 16 March 2017 as a true and accurate record of the proceedings held.

Discussion

The draft public minutes of the LGA Board meeting held on 16 March 2017 are attached for confirmation as to their accuracy. The draft confidential minutes are listed under Confidential Reports within the confidential agenda for this meeting and will be separately adopted.


ECM 648897 LGA Board Meeting Draft Minutes – 16 March 2017 Page 1 of 18

Draft Minutes of the LGA Board Meeting held on Thursday 16 March 2017 at 12:14pm at Local Government House, 148 Frome Street, Adelaide


The President opened the meeting at 12:14pm and welcomed members and staff.

1.1 Present

Members:

Mayor Lorraine Rosenberg LGA President

Mayor Dave Burgess LGA Immediate Past President

Mayor Gillian Aldridge (until 2.40pm) Adelaide Metropolitan Zone

Cr Sue Clearihan* (until 2.48pm) Adelaide Metropolitan Zone

Mayor Kevin Knight (until 2.52pm) Adelaide Metropolitan Zone

Mayor David Parkin* Adelaide Metropolitan Zone

Mayor Karen Redman Adelaide Metropolitan Zone

Mayor Glenn Spear (until 1.22pm) Adelaide Metropolitan Zone

Mayor Denis Clark Central Zone

Mayor Peter Mattey Central Zone

Mayor Bruce Green Eyre Peninsula Zone

Mayor Erika Vickery* Limestone Coast Zone

Mayor Peter Hunt* Murraylands & Riverland Zone

Mayor Keith Parkes Southern & Hills Zone

*Vice President

Deputies:

Cr Mikki Bouchee (voting for Mayor Aldridge from 2.40 pm)


Mayor Angela Evans (voting for Mayor Bria)


Mayor Bill Spragg (voting for Mayor Spear from 1.22pm)




Deputy Mayor Arthur Mangos (voting for Mayor O’Loughlin)

Adelaide Metropolitan Zone (from 12.30 pm)

Cr Bim Lange Central Zone

Mayor Richard Sage Limestone Coast Zone

Mayor Brenton Lewis (from 1.45pm and voting for Mayor Jaensch)

Murraylands & Riverland Zone

LGA Secretariat:

Matt Pinnegar Chief Executive Officer

Lisa Teburea Executive Director, Public Affairs

Kathy Jarrett Executive Director, Corporate & Member Services

Andrea Malone Director Legislation

Chris Russell Strategic Adviser

Lea Bacon Director Policy

Jacqui Kelleher Manager Executive Services (minutes)

1.2 Apologies

Mayor Robert Bria Adelaide Metropolitan Zone

Mayor David O’Loughlin Adelaide Metropolitan Zone

Mayor Sam Telfer Eyre Peninsula Zone (Deputy)

Mayor Neville Jaensch Murraylands & Riverland Zone

Mayor Glen Rowlands Southern & Hills Zone (Deputy)

Mayor Sam Johnson Spencer Gulf Cities Zone

Mayor John Rohde Spencer Gulf Cities Zone (Deputy)

1.3 Voting Deputy Board Members

Mayor Evans for Mayor Bria

Deputy Mayor Arthur Mangos for Mayor O’Loughlin (from 12.30 pm)

Mayor Lewis for Mayor Jaensch (from 1.45 pm)

Mayor Spragg for Mayor Spear (from 1.22pm)

Cr Bouchee for Mayor Aldridge (from 2.40 pm)



1.4 Oath of Office for New Members

Nil.

2. Minutes of Previous Meeting

2.1 Minutes of the LGA Board meeting held on 25 January 2017

Moved Mayor Clark Seconded Cr Clearihan that the LGA Board confirms the minutes of the LGA Board meeting held on 25 January 2017 as a true and accurate record of the proceedings held.

CARRIED

2.2 Business Arising

Nil.

2.3 Resolutions and Actions from the meeting held 25 January 2017

Moved Mayor Hunt Seconded Mayor Aldridge that the LGA Board notes progress with resolutions resulting from the meeting of 25 January 2017 and outstanding resolutions from earlier meetings.

CARRIED

With approval of the meeting, the President confirmed a change to the order of agenda items to consider item 9.8 at this time.

9 Confidential Reports

9.8 Awareness Campaign (Confidential)

Moved Mayor Hunt Seconded Mayor Evans that the LGA Board Meeting:

1. resolves to consider Agenda Item 9.8 - Awareness Campaign inconfidence being satisfied that the information received, discussed orconsidered in relation to Agenda Item 9.8 is information, the release ofwhich could prejudice the LGA’s strategic or negotiation position; and

2. orders all observers at the meeting, with the exception of staff on dutyand Jane Miller (consultant), be excluded from attendance at themeeting for Agenda Item 9.8 – Awareness Campaign.

CARRIED

12.56 pm Mayor Aldridge left the room.

Moved Mayor Vickery Seconded Mayor Hunt that the LGA Board moves out of confidence and having considered Agenda Item 9.8 - Awareness Campaign



in confidence resolves to retain the report and resolution in confidence until the conclusion of the campaign or unless deemed appropriate at the discretion of the CEO and the Executive Committee because it is information that could prejudice the LGA’s strategic or negotiation position.

CARRIED

3. LGA Updates

3.1 Report from the LGA President

Mayor Rosenberg provided a verbal update including information about the upcoming Mission to Shandong and invited members to consider having the LGA represent Councils unable to participate in the delegation but have connections in China that they would like promoted.

Moved Mayor Hunt Seconded Mayor Green that the LGA Board notes the report.

CARRIED

3.2 ALGA President’s Update

This item was withdrawn given the apology of ALGA President Mayor David O’Loughlin from attendance at the meeting due to him being in Sydney on ALGA related business.

3.3 Report from the LGA CEO

Moved Mayor Vickery Seconded Cr Clearihan that the LGA Board notes the report.

CARRIED

4. Reports from Bodies Established Pursuant to the LGA Constitution

4.1 LGA Executive Committee

Moved Mayor Burgess Seconded Mayor Hunt that the LGA Board notes the draft minutes of the LGA Executive Committee meetings held on 23 and 27 February 2017.

CARRIED

1.02pm Mayor Aldridge returned to the meeting.

4.2 Metropolitan Local Government Group

MLGG Chairperson Mayor Redman and Andrea Malone (Director Legislation) provided verbal updates.

Moved Mayor Redman Seconded Mayor Knight that the LGA Board:



1. notes the key outcomes summary of the Metropolitan LocalGovernment Group meeting held on 8 March 2017;

2. undertakes consultation with members councils on the proposal by theAdelaide Hills Council to seek a change to the Local Government(Elections) Act 1999, so a vote is considered a formal vote if itindicates a preference for at least one candidate without necessarilyindicating preferences to the number of vacancies; and

3. subject to the responses received, approach the Minister for LocalGovernment to seek a change to the Local Government (Elections) Act1999, so a vote is considered a formal vote if it indicates a preferencefor at least one candidate without necessarily indicating preferences tothe number of vacancies.

CARRIED

4.3 South Australian Regional Organisation of Councils (SAROC) Committee

SAROC Chairperson Mayor Vickery provided a verbal update on the tabled information.

4.3.1 Council Contributions to E-Planning Portal

Moved Mayor Vickery Seconded Mayor Hunt that the LGA Board recommend the Minister for Planning:

1. be advised that local government does not support theproposed contribution basis proposed for the establishmentand maintaining of the new SA Planning Portal;

2. requests the Department for Planning Transport andInfrastructure (DPTI) to discuss with the LGA Secretariat amore equitable approach to establishing and maintaining theplanning portal; and

3. not implement the contribution requirement by councils for theSA Planning portal in 2017/18 in recognition that manycouncils have already commenced budget setting processesfor 2017/18.

CARRIED

4.3.2. Future Towns Future Cities Economic Development

Moved Mayor Vickery Seconded Mayor Hunt that the LGA Board endorses “Future Towns, Future Cities” as the communication theme for the Economic Development activities of the LGA in 2017.

CARRIED



4.3.3. Federal Mobile Phone Black Spot Program

Moved Mayor Vickery Seconded Mayor Burgess that the LGA Board advocates for a higher level of funding commitment from both State and Federal Governments for the establishment of more mobile phone towers to resolve the poor, marginal and no mobile coverage in many areas throughout regional South Australia.

CARRIED

4.3.4 Council DPTI Jetty Agreements

Moved Mayor Vickery Seconded Mayor Redman that:

1. the LGA Board request the Secretariat to investigate the currentstatus of all Council jetties/ marine facilities agreements andfurther seeks the individual Councils position in relation to futurenegotiations; and

2. given the opposition’s “rate capping policy” and their push forgreater efficiencies in Local Government, the LGA Secretariatconfirms with the Liberal Opposition should they be inGovernment that they take back responsibility for the funding andmaintenance for Jetties should Councils decide to relinquishcontrol of these assets.

CARRIED

Moved Mayor Vickery Seconded Mayor Hunt that the LGA Board receives the key outcomes summary of the SAROC Committee meeting held on 25 January 2017.

CARRIED

4.4 LGA Audit Committee

Moved Mayor Parkin Seconded Deputy Mayor Mangos that the LGA Board notes the draft minutes of the LGA Audit Committee meetings held 7 February 2017 and 6 March 2017.

CARRIED

5. Invited Guest Speakers

Nil.

6. Motions on Notice

Nil



7. Reports for Discussion

7.1 2017 Ordinary General Meeting (OGM) Agenda Items

Moved Mayor Spear Seconded Mayor Vickery that the LGA Board

1. notes the report; and

2. approves the list of agenda items and associated recommendationsbeing submitted for consideration at the 2017 LGA Ordinary GeneralMeeting.

CARRIED

7.2 LGA Ageing Strategy 2016-2021: Year 1 review

Moved Mayor Burgess Seconded Mayor Clark that the LGA Board:

1. notes the report;

2. supports the continued work on the LGA Ageing Strategy 2016-2021as identified in the Year 1 Review; and

3. endorses the ‘aged care reform advocacy messages’ to strengthenlocal government’s position as the Commonwealth Governmentcontinues to reform the aged care sector.

CARRIED

7.3 Agreement with National Heavy Vehicle Regulator (NHVR)

Moved Mayor Mattey Seconded Mayor Burgess that the LGA Board:

1. notes the report, and

2. authorises the LGA SA CEO to sign the Action Plan with the NationalHeavy Vehicle Regulator.

CARRIED

7.4 Constitution (Council Member Contesting Election) Amendment Bill 2016

Moved Mayor Spear Seconded Mayor Redman that the LGA Board:

1. endorses, in principle, the policy intent of the Bill to require councilmembers standing for election to the state Parliament to take leave ofabsence from the council for the period of the election; and

2. authorises the CEO and the LGA President to finalise a submission toHon Tung Ngo outlining the drawbacks and omissions in the Bill asdrafted, that were raised by councils and are outlined in this report.

CARRIED



1.22pm Mayor Spear left the meeting. Mayor Spragg became voting delegate for Mayor Spear.

7.5 Local Government (Financial Management) Variation Regulations 2017

Moved Deputy Mayor Mangos Seconded Mayor Green that the LGA Board:


2. endorses the proposed submission on the draft Local Government(Financial Management) Variation Regulations 2017 as outlined in thereport.

CARRIED

7.6 State Local Government Infrastructure Partnership

Moved Mayor Parkes Seconded Mayor Spragg that the LGA Board:


2. acknowledges the State input providing a commitment to $3m a yearfor 10 years to bring forward important council works generatingemployment and economic development;

3. notes that the amount of State input may vary depending on theamount of interest in the SLGIP from councils and eligible applications;

4. notes the crucial role of the LGA and LGFA in the partnership includingsupport provided to Councils in the application process and proposesthat this be included in the next update of the “Value Proposition ofMembership of the LGA of SA”;

5. approves the LGA implementing the necessary financial arrangementsto accommodate the SLGIP requirements on a cost neutral basisincluding raising borrowings as required with LGFA by up to $30m.Such borrowings are to be subject to the satisfactory conclusion of adeed of agreement with the State which secures the LGA’s capacity torepay borrowings and is overall cost neutral to the LGA;

6. requests that the deed of agreement with the State government andsubsidiary agreements between the LGA and councils addressidentified risks to ensure that any financial exposure of the LGA is to berecovered from the State or from councils, and;

7. authorises the LGA seal to be affixed to a deed of agreement with theState government once the CEO is satisfied it appropriately supportsthe program objectives and protects the LGA’s interests in theprogram.

CARRIED



7.7 LGA Governance Review Update

The President updated members on the City of Marion’s decision to remain members of the Association.

Moved Mayor Spragg Seconded Cr Clearihan that the LGA Board notes the report.

CARRIED

7.8 LGA Executive Committee Terms of Reference

Moved Mayor Vickery Seconded Mayor Hunt that the LGA Board adopts the LGA Executive Committee Terms of Reference as attached to this report inclusive of the Board’s delegations and authority to act as set out in Clause 3 ‘Objectives’.

CARRIED

8. Nominations to Outside Bodies

1.34pm Mayors Burgess, Aldridge, Sage and Deputy Mayor Mangos declared an interest and left the room on the basis that they had either previously been nominated by the Board or had submitted an expression of interest to be nominated for the SA Grants Commission.

1.35 pm CEO Matt Pinnegar left the room.

8.1 South Australian Local Government Grants Commission

Moved Mayor Hunt Seconded Mayor Redman that the LGA Board forwards the following further one nominee, Cr Luke Hutchinson to the Minister for Local Government for appointment to the South Australian Local Government Grants Commission for a 3 to 5 year term commencing in April 2017.

CARRIED

1.37pm Mayors Burgess, Aldridge, Sage and Deputy Mayor Mangos and CEO Matt Pinnegar returned to the room.

1.43pm The meeting adjourned for a short break.

1.48pm The meeting resumed.

8.2 Power Line Environment Committee

Moved Cr Clearihan Seconded Deputy Mayor Mangos that the LGA Board forwards the following panel of three nominees (including at least one man and one woman) to the Technical Regulator for the appointment of one LGA nominee to the Power Line Environment Committee, for a term commencing as soon as the Minister determines:



Ms Pam Andritsakis (Holdfast Bay) Mr Joshua Bowen (Walkerville) Cr Garth Palmer (West Torrens) CARRIED

8.3 Local Government Advisory Committee

Moved Mayor Vickery Seconded Mayor Redman that the LGA Board:

1. forwards the following panel (at least one man and one woman) of notless than twenty one nominees to the Minister for Planning for theappointment of ten representatives to the Local Government AdvisoryCommittee, for a term not exceeding twelve months:

Cr Ian Bailey, Adelaide Hills Council Cr Mark Basham, City of Port Adelaide Enfield Ms Hannah Bateman, City of West Torrens Mr Leith Blacker, District Council of Lower Eyre Peninsula Ms Jennifer Brewis, District Council of Streaky Bay Mr Gary Brinkworth, City of Playford Mr Laurie Collins, District Council of Kimba Mr Paul Deb, City of Burnside Mrs Shanti Ditter, Adelaide City Council Mrs Alison Hancock, City of Onkaparinga Mr Paul Johnson, City of Playford Mr John Kemp, Adelaide Hills Council Cr Michael (Bim) Lange, The Barossa Council Mr Leith McEvoy, District Council of Grant Cr Don Palmer, City of Unley Mrs Sally Roberts, Alexandrina Council Mr Matthew Romaine, City of Mitcham Mr Joel Taggart, Mid Murray Council Mr Mark Thompson, City of Norwood Payneham & St Peters Mr Ryan Viney, Town of Gawler Mr Greg Waller, Mount Barker District Council Cr Graham Webster, Corporation of the Town of Walkerville Mr Chris Zafiropoulos, City of Salisbury; and

2. requests the Minister for Planning to include a LGA Secretariatrepresentative as an additional member of the Local GovernmentAdvisory Committee.

CARRIED

8.4 State Records Council

Moved Cr Clearihan Seconded Mayor Evans that the LGA Board forward the following panel (at least one man and one woman) of three nominees to the



Director, State Records for the appointment of one representative to the State Records Council, for a 3 year term commencing immediately:

Ms Laura Fischetti (Salisbury) Mr Glen Heaysman (Charles Sturt) Cr Heather Merritt (Onkaparinga)

CARRIED

9. Confidential Reports (cont.)

9.1 Confidential Minutes of LGA Board meeting held on 25 January 2017

Moved Mayor Clark Seconded Mayor Hunt that the LGA Board:

1. resolves to consider Agenda Item 9.1 – Confidential Minutes of LGABoard meeting held on 25 January 2017 in confidence because it isinformation, the release of which could prejudice the LGA’s strategic ornegotiation position (9.3, 9.4, 9.5 & 9.6); and

2. orders all observers at the meeting, with the exception of staff on duty,be excluded from attendance at the meeting for Agenda Item 9.1 –Confidential Minutes of LGA Board meeting held on 25 January 2017.

CARRIED

Moved Mayor Aldridge Seconded Mayor Vickery that the LGA Board confirms the confidential minutes of the meeting held on 25 January 2017 as a true and accurate record of the proceedings held.

CARRIED

Moved Mayor Aldridge Seconded Mayor Vickery that the LGA Board moves out of confidence and having considered Agenda Item 9.1 - Confidential Minutes of LGA Board meeting held on 25 January 2017 in confidence resolves to retain the attachment in confidence within the parameters of the original resolutions contained within.

CARRIED

9.2 Confidential minutes of LGA Executive Committee meeting held on 23 February 2017

Moved Mayor Vickery Seconded Mayor Aldridge that the LGA Board:

1. resolves to consider Agenda Item 9.2 – Confidential Minutes of LGAExecutive Committee meeting held on 23 February 2017 in confidencebecause it is:

confidential commercial information which could reasonably beexpected to prejudice the commercial position of the person whoprovided the information or confer a commercial advantage on a



third party and which would, on balance, be contrary to the public interest (6.2 & 7.4); and

information that the release of which could prejudice the LGA’sstrategic or negotiation position; (7.1 & 7.3).

2. orders all observers at the meeting, with the exception of staff on duty,be excluded from attendance at the meeting for Agenda Item 9.2 –Confidential Minutes of LGA Executive Committee meeting held on 23February 2017.

CARRIED

Moved Cr Clearihan Seconded Mayor Green that the LGA Board notes the confidential minutes of the LGA Executive Committee meeting held 23 February 2017.

CARRIED

Moved Cr Clearihan Seconded Mayor Green that the LGA Board moves out of confidence and having considered Agenda Item 9.2 - Confidential Minutes of LGA Executive Committee meeting held on 23 February 2017 in confidence resolves to retain the attachment in confidence within the parameters of the original resolutions contained within.

CARRIED

9.3 LGA Audit Committee Confidential Meeting Minutes held 7 February 2017 and 6 March 2017

Moved Mayor Aldridge Seconded Mayor Clark that the LGA Board:

1. resolves to consider Agenda Item 9.3 - LGA Audit CommitteeCONFIDENTIAL Meeting Minutes held 7 February 2017 and 6 March2017 in confidence being satisfied that the information received,discussed or considered in relation to Agenda Item 9.3 is informationthat the release of which could prejudice the LGA’s strategic ornegotiation position; and

2. orders all observers at the meeting, with the exception of staff on duty,be excluded from attendance at the meeting for Agenda Item 9.3 - LGAAudit Committee CONFIDENTIAL Meeting Minutes held 7 February2017 and 6 March 2017.

CARRIED

Additional information was tabled.

Moved Mayor Spragg Seconded Mayor Redman that the LGA Board notes the draft confidential minutes of the LGA Audit Committee meetings held on 7 February and 6 March 2017.



CARRIED

Moved Mayor Spragg Seconded Mayor Redman that the LGA Board moves out of confidence and having considered Agenda Item 9.3 – LGA Audit Committee CONFIDENTIAL Meeting Minutes held 7 February 2017 and 6 March 2017 in confidence resolves to retain the attachments in confidence within the parameters of the original resolutions contained within.

CARRIED

9.4 LGA Procurement Update

Moved Mayor Hunt Seconded Mayor Vickery that the LGA Board:

1. resolves to consider Agenda Item 9.4 - LGA Procurement Update inconfidence being satisfied that the information received, discussed orconsidered in relation to Agenda Item 9.4 is confidential commercialinformation which could reasonably be expected to prejudice thecommercial position of the person who provided the information orconfer a commercial advantage on a third party and which would, onbalance, be contrary to the public interest; and

2. orders all observers at the meeting, with the exception of staff on dutyand non voting deputies be excluded from attendance at the meetingfor Agenda Item 9.4 - LGA Procurement Update.

CARRIED

Executive Director Corporate & Member Services and Acting CEO LGA Procurement provided a verbal update.

Moved Mayor Hunt Seconded Mayor Vickery that the LGA Board moves out of confidence and having considered Agenda Item 9.4 - LGA Procurement Update in confidence resolves to retain the report and resolution in confidence indefinitely in relation to this matter because it is confidential commercial information which could reasonably be expected to prejudice the commercial position of the person who provided the information or confer a commercial advantage on a third party and which would, on balance, be contrary to the public interest.

CARRIED

9.5 Management of Local Government Governance Panel

Moved Mayor Spragg Seconded Mayor Hunt that the LGA Board:

1. resolves to consider Agenda Item 9.5 – Management of LocalGovernment Governance Panel in confidence being satisfied that theinformation received, discussed or considered in relation to AgendaItem 9.5 is information that could reasonably be expected to confer acommercial advantage on a person with whom the LGA is conducting



(or proposing to conduct) business, or to prejudice the position of the LGA (and would, on balance, be contrary to the public interest); and

2. orders all observers at the meeting, with the exception of staff on duty,and non-voting deputies be excluded from attendance at the meetingfor Agenda Item 9.5 – Management of Local Government GovernancePanel.

CARRIED

Moved Mayor Evans Seconded Mayor Parkes that the LGA Board:

1. endorses the proposed changes to the management of the LocalGovernment Governance Panel (panel) as set out below;

2. resolves to move to a fully self-funded model for the panel, with thenew panel manager operating on a fee for service arrangement withparticipating councils;

3. resolves to discontinue all funding for the panel from 31 March 2017,including the retainer for the panel chairperson and sitting fees forpanel members attending meetings; and

4. resolves to continue to manage the payment arrangements for panelmembers while investigating the option of charging participatingcouncils a fee for this service.

CARRIED

Moved Mayor Hunt Seconded Mayor Redman that the LGA Board moves out of confidence and having considered Agenda Item 9.5 – Management of Local Government Governance Panel in confidence resolves to:

1. retain report until new governance panel recommendations have beenfinalised and implemented;

2. retain attachment until new governance panel recommendations havebeen finalised and implemented; and

3. release the resolution

in relation to this matter because it is information that could reasonably be expected to confer a commercial advantage on a person with whom the LGA is conducting (or proposing to conduct) business, or to prejudice the position of the LGA (and would, on balance, be contrary to the public interest).

CARRIED



9.6 LGA Subscription Formula - Additional Review

Moved Mayor Green Seconded Mayor Clark that the LGA Board:

1. resolves to consider Agenda Item 9.6 - LGA Subscription Formula –Additional Review in confidence being satisfied that the informationreceived, discussed or considered in relation to Agenda Item 9.6 isinformation that the release of which could prejudice the LGA’sstrategic or negotiation position; and

2. orders all observers at the meeting, with the exception of staff on duty,be excluded from attendance at the meeting for Agenda Item 9.6 –LGA Subscription Formula - Additional Review.

CARRIED

The Executive Director Corporate & Member Services provided a verbal update.

Moved Mayor Spragg Seconded Deputy Mayor Mangos that the LGA Board:

1. notes the recommendation from the Executive Committee regardingthe outcomes of the additional subscription formula review; and

2. undertakes further consultation with member councils regarding theremodelled subscription formula options based on the differentpopulation bands as well as the newly identified approach being anequal flat component for all councils and removal of the 3 times cap;and

3. requests that the outcomes of the consultation be presented to the May2017 Board meeting as part of the Board’s consideration ofsubscription fees for application in the 2017/2018 year.

CARRIED

Moved Mayor Aldridge Seconded Deputy Mayor Mangos that the LGA Board moves out of confidence and having considered 9.6 – LGA Subscription Formula - Additional Review in confidence resolves to keep it confidential until the Board considers the item and if resolved to do so, releases the information for consultation with member councils.

CARRIED

9.7 Public Lighting Business Case Update

Moved Mayor Hunt Seconded Mayor Redman that the LGA Board:

1. resolves to consider Agenda Item 9.7 - Public Lighting Business CaseUpdate in confidence being satisfied that the information received,discussed or considered in relation to Agenda Item 9.7 is information



the release of which could prejudice the LGA’s strategic or negotiating position; and

2. orders all observers at the meeting, with the exception of staff on dutyand non voting deputies be excluded from attendance at the meetingfor Agenda Item 9.7 - Public Lighting Business Case Update.

CARRIED

The Executive Director Public Affairs provided a verbal update.

2.40pm Mayor Aldridge left the meeting and Cr Bouchee became voting member for Mayor Aldridge.

2.42pm Mayor Evans left the room.

2.48pm Cr Clearihan left the meeting.

Moved Mayor Hunt Seconded Mayor Vickery that the LGA Board moves out of confidence and having considered Agenda Item 9.7 - Public Lighting Business Case Update in confidence resolves to retain the report and resolution in confidence until the matter is settled because it is information, the release of which could prejudice the LGA’s strategic or negotiation position.

CARRIED

10. Late Reports

10.1 State Budget Submission 2017/18 – Confidential

Moved Cr Bouchee Seconded Mayor Green that the LGA Board:

1. resolves to consider Agenda Item 10.1 – State Budget Submission2017/18 in confidence being satisfied that the information received,discussed or considered in relation to Agenda Item 10.1 is informationthat the release of which could prejudice the LGA’s strategic ornegotiation position; and

2. orders all observers at the meeting, with the exception of staff on dutyand LGA Board Deputy Members, be excluded from attendance at themeeting for Agenda Item 10.1 – State Budget Submission 2017/18.

CARRIED

2.51pm Mayor Sage left the meeting

2.52pm Mayor Knight left the meeting.

Moved Mayor Redman Seconded Mayor Vickery that the LGA Board:




2. endorses the State Budget Submission recommendations outlinedwithin this report;

3. authorises the LGA President and Chief Executive Officer to finalise a2017/18 State Budget Submission based on the endorsedrecommendations and issues raised at the meeting; and

4. notes that the a communications and media plan will be developed toraise awareness of the LGA 2017/18 State Budget Submission withLGA members, political parties, industry bodies and communities.

CARRIED

2.55pm Mayor Sage returned to the meeting.

Moved Cr Bouchee Seconded Mayor Hunt that the LGA Board moves out of confidence and having considered Agenda Item 10.1 – State Budget Submission 2017/18 in confidence resolves to:

1. retain the report in confidence until the submission is finalised andforwarded to the state government, because it is information, therelease of which could prejudice the LGA’s strategic or negotiationposition; and

2. release the resolution.

CARRIED

3.04pm Mayor Evans returned to the meeting.

11. Questions With / Without Notice

Nil.

12. Any Other Business

12.1 LGA Governance Review – nominations to outside bodies process/policy

Mayor Parkin requested the Secretariat give priority to refining the process and policy surrounding nominations to outside bodies.

13. Next MeetingThe next meeting of the LGA Board will be held on Thursday 18 May 2017 atAlexandrina Council.

14. Close

The meeting was declared closed at 3.18pm.



2.2 Resolutions and Actions from the Meeting held 16 March 2017

Minutes of Previous Meeting




Recommendation

That the LGA Board notes progress with resolutions resulting from the meeting of 16 March 2017 and outstanding resolutions from earlier meetings.

Discussion

The attachment shows progress of resolutions from previous meetings of the LGA Board.


(Update on Resolutions and Actions from previous LGA Board meetings)


Resolutions from the meeting of the LGA Board – 16 March 2017

Update

4.2 Metropolitan Local Government Group

MLGG Chairperson Mayor Redman and Andrea Malone (Director Legislation) provided verbal updates.

Moved Mayor Redman Seconded Mayor Knight that the LGA Board:

1. notes the key outcomes summary of the MetropolitanLocal Government Group meeting held on 8 March2017;

2. undertakes consultation with members councils on theproposal by the Adelaide Hills Council to seek a changeto the Local Government (Elections) Act 1999, so a voteis considered a formal vote if it indicates a preference forat least one candidate without necessarily indicatingpreferences to the number of vacancies; and

3. subject to the responses received, approach the Ministerfor Local Government to seek a change to the LocalGovernment (Elections) Act 1999, so a vote isconsidered a formal vote if it indicates a preference for atleast one candidate without necessarily indicatingpreferences to the number of vacancies.

A report on the outcomes of consultation on this matter has been included in the May Board Agenda with a recommendation that no further action be undertaken at this time.

4.3.1 Council Contributions to E-Planning Portal

Moved Mayor Vickery Seconded Mayor Hunt that the LGA Board recommend the Minister for Planning:

1. be advised that local government does not support theproposed contribution basis proposed for theestablishment and maintaining of the new SA PlanningPortal;

2. requests the Department for Planning Transport andInfrastructure (DPTI) to discuss with the LGA Secretariata more equitable approach to establishing andmaintaining the planning portal; and

3. not implement the contribution requirement by councilsfor the SA Planning portal in 2017/18 in recognition thatmany councils have already commenced budget settingprocesses for 2017/18.

Following the Board/SAROC resolution a letter was received from DPTI advising of the proposed council contributions and requesting the LGA consult with councils and provide feedback. Consultation has taken place, with councils expressing concern at the impact of the contribution and the level of the contribution. These views have been conveyed in a letter to the Minister for Planning and the CEO of DPTI.




4.3.3. Federal Mobile Phone Black Spot Program

Moved Mayor Vickery Seconded Mayor Burgess that the LGA Board advocates for a higher level of funding commitment from both State and Federal Governments for the establishment of more mobile phone towers to resolve the poor, marginal and no mobile coverage in many areas throughout regional South Australia.

Included in the LGA budget submission to SA Govt and letters written to Federal and State Ministers seeking additional funding allocation to the Mobile Black Spot Program

4.3.4 Council DPTI Jetty Agreements

Moved Mayor Vickery Seconded Mayor Redman that:

1. the LGA Board request the Secretariat to investigate thecurrent status of all Council jetties/ marine facilitiesagreements and further seeks the individual Councilsposition in relation to future negotiations; and

2. given the opposition’s “rate capping policy” and theirpush for greater efficiencies in Local Government, theLGA Secretariat confirms with the Liberal Oppositionshould they be in Government that they take backresponsibility for the funding and maintenance for Jettiesshould Councils decide to relinquish control of theseassets.

The LGA has commenced information gathering from regional councils that are currently in jetty/wharf lease agreements. This information will determine a sector-wide approach to the issue.

The LGA has also written to all major parties noting increasing funding pressures councils face in regards to jetties and how a rate capping environment would exacerbate the issue. This ‘services’ campaign will form part of the LGA State Election campaign.

7.2 LGA Ageing Strategy 2016-2021: Year 1 review

Moved Mayor Burgess Seconded Mayor Clark that the LGA Board:


2. supports the continued work on the LGA Ageing Strategy2016-2021 as identified in the Year 1 Review; and

3. endorses the ‘aged care reform advocacy messages’ tostrengthen local government’s position as theCommonwealth Government continues to reform theaged care sector.

Completed

The LGA has released the Aged Care Funding – Issues for Local Government Discussion Paper to ensure that councils are sufficiently informed to respond to the Commonwealth Government’s aged care reforms and to engage in the debate; both within their own Council and with future consultation on the national reforms as they continue throughout 2017/18. Please see LGA Circular 15.5

7.4 Constitution (Council Member Contesting Election) Amendment Bill 2016

Submission forwarded to Tung Ngo MLC


http://www.lga.sa.gov.au/page.aspx?c=75669



Moved Mayor Spear Seconded Mayor Redman that the LGA Board:

1. endorses, in principle, the policy intent of the Bill torequire council members standing for election to thestate Parliament to take leave of absence from thecouncil for the period of the election; and

2. authorises the CEO and the LGA President to finalise asubmission to Hon Tung Ngo outlining the drawbacksand omissions in the Bill as drafted, that were raised bycouncils and are outlined in this report.

Mr Ngo’s Bill has not been introduced into Parliament. However, David Pisoni, Shadow Minister for Local Government, introduced his own private member’s Bill on the same subject on 11 May 2017. This Bill, Local Government (Members Contesting State Elections) Amendment Bill 2017, seeks to amend the Local Government Act to the effect that any council member who stands for election to state parliament will be deemed to have taken leave of absence from the council from the date on which nominations close.

Mr Pisoni did not consult the LGA before introducing his Bill.

7.5 Local Government (Financial Management) Variation Regulations 2017

Moved Deputy Mayor Mangos Seconded Mayor Green that the LGA Board:


2. endorses the proposed submission on the draft LocalGovernment (Financial Management) VariationRegulations 2017 as outlined in the report.

Completed – submission forwarded to Minister.

7.6 State Local Government Infrastructure Partnership

Moved Mayor Parkes Seconded Mayor Spragg that the LGA Board:


2. acknowledges the State input providing a commitment to$3m a year for 10 years to bring forward importantcouncil works generating employment and economicdevelopment;

3. notes that the amount of State input may vary dependingon the amount of interest in the SLGIP from councils and

Mayor Rosenberg has written to all successful Councils. Negotiations with State Government on the deed are advanced and likely to be concluded before the Board meeting.




eligible applications;

4. notes the crucial role of the LGA and LGFA in thepartnership including support provided to Councils in theapplication process and proposes that this be included inthe next update of the “Value Proposition of Membershipof the LGA of SA”;

5. approves the LGA implementing the necessary financialarrangements to accommodate the SLGIP requirementson a cost neutral basis including raising borrowings asrequired with LGFA by up to $30m. Such borrowings areto be subject to the satisfactory conclusion of a deed ofagreement with the State which secures the LGA’scapacity to repay borrowings and is overall cost neutralto the LGA;

6. requests that the deed of agreement with the Stategovernment and subsidiary agreements between theLGA and councils address identified risks to ensure thatany financial exposure of the LGA is to be recoveredfrom the State or from councils, and;

7. authorises the LGA seal to be affixed to a deed ofagreement with the State government once the CEO issatisfied it appropriately supports the program objectivesand protects the LGA’s interests in the program.

8.1 South Australian Local Government Grants Commission

Moved Mayor Hunt Seconded Mayor Redman that the LGA Board forwards the following further one nominee, Cr Luke Hutchinson to the Minister for Local Government for appointment to the South Australian Local Government Grants Commission for a 3 to 5 year term commencing in April 2017.

Completed – additional name forwarded to Grants Commission.

8.2 Power Line Environment Committee

Moved Cr Clearihan Seconded Deputy Mayor Mangos that the LGA Board forwards the following panel of three nominees (including at least one man and one woman) to the Technical Regulator for the appointment of one LGA nominee to the Power Line Environment Committee, for a term commencing as soon as the Minister determines:

Ms Pam Andritsakis (Holdfast Bay) Mr Joshua Bowen (Gawler) Cr Garth Palmer (West Torrens)

Completed – additional name forwarded to PLEC.




8.3 Local Government Advisory Committee

Moved Mayor Vickery Seconded Mayor Redman that the LGA Board:

1. forwards the following panel (at least one man and onewoman) of not less than twenty one nominees to theMinister for Planning for the appointment of tenrepresentatives to the Local Government AdvisoryCommittee, for a term not exceeding twelve months:

Cr Ian Bailey, Adelaide Hills Council Cr Mark Basham, City of Port Adelaide Enfield Ms Hannah Bateman, City of West Torrens Mr Leith Blacker, District Council of Lower Eyre Peninsula Ms Jennifer Brewis, District Council of Streaky Bay Mr Gary Brinkworth, City of Playford Mr Laurie Collins, District Council of Kimba Mr Paul Deb, City of Burnside Mrs Shanti Ditter, Adelaide City Council Mrs Alison Hancock, City of Onkaparinga Mr Paul Johnson, City of Playford Mr John Kemp, Adelaide Hills Council Cr Michael (Bim) Lange, The Barossa Council Mr Leith McEvoy, District Council of Grant Cr Don Palmer, City of Unley Mrs Sally Roberts, Alexandrina Council Mr Matthew Romaine, City of Mitcham Mr Joel Taggart, Mid Murray Council Mr Mark Thompson, City of Norwood Payneham & St Peters Mr Ryan Viney, Town of Gawler Mr Greg Waller, Mount Barker District Council Cr Graham Webster, Corporation of the Town of Walkerville Mr Chris Zafiropoulos, City of Salisbury; and

2. requests the Minister for Planning to include a LGASecretariat representative as an additional member ofthe Local Government Advisory Committee.

The list of names as determined by the Board has been forward to the Minister for Planning for his consideration. The Minister provided advice on 18 April 2017 informing the Board that he was still giving consideration to the matter.

8.4 State Records Council

Moved Cr Clearihan Seconded Mayor Evans that the LGA Board forward the following panel (at least one man and one woman) of three nominees to the Director, State Records for the appointment of one representative to the State Records Council, for a 3 year term commencing immediately: Ms Laura Fischetti (Salisbury) Mr Glen Heaysman (Charles Sturt) Cr Heather Merritt (Onkaparinga)

Completed – additional name forwarded to State Records Council.




9.5 Management of Local Government Governance Panel

Moved Mayor Spragg Seconded Mayor Hunt that the LGA Board:

Moved Mayor Evans Seconded Mayor Parkes that the LGA Board:

1. endorses the proposed changes to the management ofthe Local Government Governance Panel (panel) as setout below;

2. resolves to move to a fully self-funded model for thepanel, with the new panel manager operating on a feefor service arrangement with participating councils;

3. resolves to discontinue all funding for the panel from 31March 2017, including the retainer for the panelchairperson and sitting fees for panel members attendingmeetings; and

4. resolves to continue to manage the paymentarrangements for panel members while investigating theoption of charging participating councils a fee for thisservice.

Completed – LGA is contracting with EMA Legal to manage the LGA governance panel.

9.6 LGA Subscription Formula - Additional Review

Moved Mayor Spragg Seconded Deputy Mayor Mangos that the LGA Board:

1. notes the recommendation from the ExecutiveCommittee regarding the outcomes of the additionalsubscription formula review; and

2. undertakes further consultation with member councilsregarding the remodelled subscription formula optionsbased on the different population bands as well as thenewly identified approach being an equal flat componentfor all councils and removal of the 3 times cap; and

3. requests that the outcomes of the consultation bepresented to the May 2017 Board meeting as part of theBoard’s consideration of subscription fees for applicationin the 2017/2018 year.

The additional review has been completed with a report provided on the Agenda for the 18 May Board meeting.

10.1 State Budget Submission 2017/18 – Confidential

Moved Cr Bouchee Seconded Mayor Green that the LGA Board:

Completed

The LGA State Budget Submission was finalised and submitted to the State




Moved Mayor Redman Seconded Mayor Vickery that the LGA Board:


2. endorses the State Budget Submissionrecommendations outlined within this report;

3. authorises the LGA President and Chief ExecutiveOfficer to finalise a 2017/18 State Budget Submissionbased on the endorsed recommendations and issuesraised at the meeting; and

4. notes that the a communications and media plan will bedeveloped to raise awareness of the LGA 2017/18 StateBudget Submission with LGA members, political parties,industry bodies and communities.

Government on 22 March.

12.1 LGA Governance Review – nominations to outside bodies process/policy

Mayor Parkin requested the Secretariat give priority to refining the process and policy surrounding nominations to outside bodies.

A policy and process position will be developed and a report will be presented to the LGA board in July.

Resolutions from the meeting of the LGA Board – 25 January 2017

Update

4.3.1 Population Policy

Moved Mayor Green Seconded Mayor Aldridge that the LGA Board:

1. acknowledges the need for continued advocacy for aSouth Australian population policy; and

2. confirms the position that a population policy shouldguide:

a. Population growth and decline in and betweenregions (including the metropolitan region)

b. Impacts of an ageing population

c. Labour force and skills

d. Migration policy

e. Maintaining and enhancing liveability for regional,rural and remote communities

Completed

This policy positon was included in the LGA State Budget Submission and will be incorporated in the LGA State Election platform.




f. Demands on infrastructure provision, particularlytransport, community facilities, essential servicesand broadband.

4.3.2 Draft Borrow Pit Guidelines

Moved Mayor Mattey Seconded Mayor Clark that the LGA Board adopts the Guidance: Quarry and borrow pit rehabilitation in South Australia (November 2016) subject to sign off by all regions within a two month timeframe.

Completed

A number of responses were received from councils and regional organisations. These have been collated and forwarded to DSD for comment and/or incorporation into the Guidelines

7. 13 Climate Knowledge Innovation Community

Moved Mayor Aldridge Seconded Mayor Jaensch that the LGA Board:

1. notes the benefits to the local government sector ofClimate Knowledge Innovation Community (KIC);

2. endorses the LGA becoming an Associate Partner ofClimate KIC with payment of associate membershipbeing accessed via Waste to Resources Fund; and

3. endorse the President and CEO requesting thisallocation from the Minister as soon as possible.

Completed

This matter has been discussed with the Minister and state agencies and an agreement has been reached for funding of LGA membership.

7.14 ‘Value Capture’ Response to Commonwealth Discussion Paper

Moved Mayor Aldridge Seconded Mayor Spragg that the LGA Board:


2. notes the LGA response to the 31 questions posed bythe Commonwealth Discussion Paper on ValueCapture; and

3. delegates to the President and CEO to finalise theresponse in alignment with the matters raised duringthe Board’s discussions and highlight that while theresponse has been developed based on the 31questions, further consultation will be undertakenseeking the sector’s broader views on value capture.

Completed

Consultation has been undertaken and the responses received confirmed the views expressed in the LGA Discussion Paper.

7. 18 Draft Long Term Financial Plan 2017 - 2026

Executive Director Corporate & Member Services and Acting Director Finance Chantel Venn provided responses to questions from members.

With the new Director Corporate Services now commenced at the LGA, this item will be progressed and




Moved Mayor Redman Seconded Mayor Mattey that the LGA Board:


2. refers the Draft Long Term Financial Plan 2017-2026to the Audit Committee for a detailed examination andsubsequent referral back to the March 2017 BoardMeeting.

referred to the July or September .Audit Committee meeting

9.5 Public Lighting Charges 2010-2015

Moved Mayor Spragg Seconded Mayor Green that the LGA Board:

Moved Mayor Jaensch Seconded Mayor Parkin that the LGA Board


2. authorises the LGA to commence consultation withPublic Lighting User councils on a Special PurposeLevy (pursuant to Clause 128 of the LGAConstitution) that will be payable to the LGA for therecovery of an estimated $250,000 of legal andconsultant costs incurred in pursuing recovery ofpayments made by those councils to SA PowerNetworks from 2010-2015;

3. authorises the LGA Chief Executive Officer, at suchtime as it may be required, to write to Public LightingUser councils requesting they enter into aManagement Agreement (or similar) with the LGA toconfirm the matters detailed in the report; and

4. refers to the LGA Audit Committee, in the firstinstance, for an examination of options for funding apotential AER determination and any resultantlitigation.

The Executive Committee received an update report on this matter in April 2017.

Consultation with councils on costs and a management agreement will occur concurrently.

Resolutions from the meeting of the LGA Board – 29 September 2016

Update

4.3.2 Automated Fire Danger Signs

Moved Mayor Vickery Seconded Mayor Ferguson that the LGA Board requests the LGA Secretariat to lobby for funding by the State Government (Country Fire Service) for the introduction of automated fire danger rating signs in South Australia.

Completed

This issue was included in the 2017/18 state budget submission.

7.4 Value Proposition of LGA Membership

Moved Mayor Rosenberg Seconded Mayor Evans that the

Completed

An independent verification




LGA Board:


2. notes the broad plan aimed at meeting the Board’s Julydecision to quarantine services from non-members.

of the Value of Membership document was finalised in March 2017.

Resolutions from the meeting of the LGA Board – 19 May 2016

Update

8.2 Review of Local Government Procurement Legislation

Moved Mayor Parkin Seconded Mayor Hunt that the LGA Board:

1. notes the report and receives a verbal update;

2. requests the LGA Secretariat to undertake alegislative review process that fosters procurementapproaches within SA councils that provide bettervalue for money and a reduction of risk;

3. requests that $20,000 be allocated in the LGASecretariat 2016/17 Budget to undertake thereview; and

4. notes that the review will include research andinvestigations, consultation with councils and theoutcomes will be reported to the LGA Board.

The LGA has engaged Wallmans Lawyers to assist in undertaking a review of the legislation and policy issues for local government procurement. Discussions have taken place with LGAP, Council Solutions, and the Barossa Procurement Group. A survey was sent to all councils and no responses were received.

The outcomes of the review will be reported to the Board in July.

Resolutions from the meeting of the LGA Board – 26 November 2015 Update

8.8 Asset Management Advisory Committee Moved Mayor Agnew Seconded Mayor Jaensch that the LGA Board:

1. notes the report;2. considers any ‘late item’ recommendations arising

from two separate reports on:a. waste management (the Colby report); andb. CWMS (the Gayler report);

3. requests future advice on possibilities for actionarising from current research into:

a. regional airports; andb. a comparison of auditing options;

4. notes the AMAC’s support for research in 2016 intostreet lighting business cases; and

5. conveys to the State Government the LGA’swillingness to work with the State to improve the assetmanagement capacities of small rural Councils.

Completed

Point 5 has been deferred pending completion of a program for ‘last chance' hands-on expert assistance in asset and infrastructure management and long-term financial management in small rural councils. This program has been finalised at 10 Councils.

Mt Remarkable Lower Eyre Peninsula Tumby Bay Robe Kingston Peterborough Elliston




Kimba Southern Mallee; and Wudinna

Each one of these Councils has been reimbursed for 50% of the cost (to a maximum of $4,000 each) for preparing and aligning up-to-date long-term financial plans with their infrastructure and asset management plans.

A further nine Councils may yet make claims; having come part-way towards completing their plans.

Further updates will be provided to the Board as required.

8.9 Regional Tourism / Visitor Economy Moved Mayor Agnew Seconded Mayor Jaensch that the LGA Board:

1. notes the report;2. requests the LGA Secretariat to:

a. investigate how Local Government tourism fundingreporting can be standardised to reflect the truecontribution of Local Government to tourism in SA;

b. facilitate the South Australian Tourism Council’s(SATC) engagement with regional LGAs to discussthe National Strategic Directions Paper on VisitorInformation Centres;

3. requests that the LGA advocates for a position on theSATC Board for Local Government;

4. requests that the LGA President write to the ALGAPresident to encourage ALGA to seek membership onthe national Tourism Ministers’ Roundtable; and

5. receives a further report on the outcomes of theRegional Tourism Review relevant to LocalGovernment to inform further action.

An update report on this item will be provided to SAROC and the Board in July.

Resolutions from the meeting of the LGA Board – 19 March 2015 Update

8.1 Award Coverage of Council CEOs

Moved Cr Whittaker Seconded Mayor Spear that the LGA Board Meeting:


A draft model CEO employment contract has been developed and the LGA is currently consulting with




2. endorses the LGA seeking an amendment to theLocal Government Act to provide for employmentcontracts for CEOs for a term to be determined bythe Council;

3. endorses the Local Government Act being amended,following consultation with Local GovernmentProfessionals SA (LGPSA), to enable Councils andCEOs to access the SA Civil and AdministrativeTribunal to settle disputes and hear and arbitrate onunfair dismal cases; and

4. endorses the LGA together with LGPSA to prepare,utilising Local Government Research & DevelopmentScheme funding, a model CEO employment contractas a guide for Councils.

Local Government Professionals SA (LGPSA).



3.1 Report from the LGA President

Recommendation:

That the SAROC Committee notes the report.

2017/18 Federal Budget

There was some good news for South Australian councils in the Federal Government’s 2017/18 Budget, with the reintroduction of indexation for Financial Assistance Grants, and return of supplementary road funding for South Australia. South Australian councils will share in around $156 million in 2017/18 FAGs, compared to $151.5 million per annum over the past three years. The supplementary road funding replaces an annual top up payment received by SA from 2004/5 to 2014/15, and will be $20 million a year over the next two financial years. The LGA and ALGA have worked hard to advocate for the return of FAGs indexation and supplementary road funding, which were both cut three years ago, and we acknowledge and appreciate the Commonwealth’s investment in South Australian communities through these funding programs.

2017 Public awareness campaign

The LGA’s 2017 public awareness campaign is underway, and 50 councils have committed to participating. The first round of creative materials has been delivered to councils, with flyers being included in April rates notices encouraging ratepayers to participate in the budget consultation process. Radio advertising has also commenced both in Adelaide and regional SA. This is the first phase of a three phase campaign to raise awareness of the value and extent of council services, and ultimately stand against the introduction of rate capping in South Australia.

New ten year funding agreement for CWMS

It was fantastic to see Minister Brock announce a ten year $47 million extension to the state/local government CWMS partnership last month. This has been a terrific collaboration enabling the LGA to work with councils to develop much needed community waste water management systems around the State; and I’m looking forward to continuing to partner with the Government on this initiative for the benefit of rural and remote communities.

State Budget submission

The LGA has provided the State Government with a submission for its 2017/18 Budget, highlighting more than twenty priorities for the local government sector. These include an increase to pensioner concessions, an infrastructure fund to offset rates revenue lost through community housing transfers, a population strategy for SA, a freeze to the Solid Waste Levy, and reconsideration of the costs charged to councils to implement the State’s new e-planning system. We are hoping to see some of these requests filled when the State Budget is handed down next month.



LGA/TAFE SA MOU

The LGA signed a Memorandum of Understanding with TAFE SA at our 2017 OGM lunch last month. Through this partnership, we will be able to provide thousands of council staff and elected members with the opportunity to access first-rate training through both TAFE SA as well as the LGA’s own training courses. Our sector has a commitment to continued improvement and this will make it easier for council members and staff – particularly in regional areas – to access relevant and specifically tailored training courses.

State Local Government Infrastructure Partnership

I was pleased to recently be part of the approval process for the State Local Government Infrastructure Partnership with Treasurer Koutsantonis and Minister Brock. This program – negotiated by the LGA – will see more than 25 councils receive almost $25m in State Government funding for infrastructure projects with a total value of around $120 million. I would also like to acknowledge and thank the LGFA for their support through offering participating councils discounted loans. Thirty-one successful projects have been announced so far, and a couple of projects are still in the mix for remaining funds.

Benchmarking for councils

The LGA recently commenced a benchmarking exercise that will use data already available in areas such as governance, finance, asset management and service delivery to allow councils to compare themselves to others in their region and around the State. We’ve contracted UHY Haines Norton to deliver this project, and are anticipating a report will be completed by September. This is a fantastic opportunity for our sector to improve on the services we provide our communities, and prove that as the most efficient sphere of government we’re serious about getting even better.

Meetings attended by President Mayor Lorraine Rosenberg since March Board meeting

23 March Attending ALGA Board with Mayor Burgess and CEO Matt Pinnegar

28 March Meeting with Hon Robert Brokenshire MLC with CEO re alternative reforms to rate capping

31 March Attended Yorke & Mid North Regional Forum in Clare with CEO

4 April Attended Spencer Gulf Cities Region Meeting at Whyalla with LGA Strategic Adviser Chris Russell

Met with Whyalla Mayor Lyn Breuer & CEO Chris Cowley with LGA Strategic Adviser Chris Russell

5 April Met with Hon Justin Hanson MLC with Lisa Teburea re rates awareness campaign

Met with Anna Tree (Adviser to Hon Kelly Vincent MLC) re Boundary Adjustment Bill



12 April UDIA/LGA Joint Committee meeting

Met with Joe Hill (Senator Stirling Griff's Manager Constituent Issues) with Lisa Teburea re rates awareness campaign

18 April Meeting with Stephan Knoll MP with CEO regarding local government issues

19 April MLGG Executive Committee meeting

20/21 April LGA Showcase & OGM

27 April LGA Executive Committee meeting

28 April Southern & Hills LGA with Director Policy Lea Bacon

9 – 15 May Premier’s Business Mission to China with CEO Matt Pinnegar

17 May SAROC Meeting (Alexandrina)

18 May LGA Board meeting (Alexandrina)

19 May Meeting with Federal Member for Mayo Rebekha Sharkie MP re rates awareness campaign

IPWEA SA Dinner with Lisa Teburea

Correspondence sent since March Board meeting

28 March Hon Stephen Mullighan invitation to speak at LGA Roads & Works Conference

Hon Ian Hunter MLC re Climate KIC Australia

7 April Various Councils re State Local Government Infrastructure Partnership Funding

2 May SA Federal MPs and Senators re LG Financial Assistance Grants

3 May Lord Mayor Martin Haese re opportunities for collaboration

Mark Dowd, President LG Professionals (SA) re opportunities for collaboration

Federal Treasurer, Hon Scott Morrison MP re housing affordability package

Senator the Hon Fiona Nash re Appointment of RDA Whyalla & Eyre Peninsula Deputy Chair

Dr Felicity-ann Lewis, Chairperson Dog & Cat Management Board re Dogs & Cats Online (DACO)

Dr Felicity-ann Lewis, Chairperson Dog & Cat Management Board re Dog & Cat Management Board 2017-2018 Operational Plan & Budget

Minister Zoe Bettison MP, State Liberal Leader Stephen Marshall MP, Senator Nick Xenophon and Members of Legislative Council re funding for community passenger networks

12 April Various Councils thanking for support of the LGA’s public awareness campaign



Media Releases

4 April LGA calls for population growth strategy

6 April LED lighting to save communities millions

13 April Time to freeze the waste

9 May LGA welcomes return of FAGs indexation and supplementary road funding for SA

Media Articles/Radio Interviews by President Mayor Lorraine Rosenberg since the 16 March Board meeting

24 March Interview with Narelle Graham on ABC Statewide re LGA public awareness campaign

30 March Interview with Leon Byner on 5AA re community housing transfers

7 April Interview with Matt Smith on 891 re pensioner concessions and LGA’s 17/18 State Budget submission

11 April Interview with Matt Stephens on ABC Riverland re LGA public awareness campaign

13 April Interview with Thea Halpin on ABC South East re LGA’s 17/18 State Budget submission



3.2 ALGA Update

LGA Updates

From: Gwyn Rimmington, Senior Policy Officer

Key Initiative: K.I 1 Leadership and advocacy

Strategy: 1E Build and maintain effective partnerships and stakeholder relations



Recommendation

That the LGA Board notes the report.

Discussion

The most recent meeting of the Australian Local Government Association (ALGA) Board was held on 23 March 2017, attended by Mayors Rosenberg and Burgess, and the LGA Executive Director Public Affairs Lisa Teburea.

Items carried at the meeting include:

Endorse ALGA’s revised Strategic Plan 2017–2020, and the draft Action Plan andBudget for 2017-18;

Note the submission of ALGA's input to the 2017-18 Federal Budget;

Note the ongoing work with the state and territory associations and theCommonwealth on Value Capture and City Deals;

Agree that ALGA establish an officer-level group to share information and bestpractice on gender equity and diversity at the elected representative level; and

Agreed future advocacy efforts regarding smart cities and digital transformation.

Draft Minutes of the meeting are attached to this report.

The LGA SA President and/or ALGA President may wish to give a verbal update on ALGA activities including the outcomes for local government of the recent Federal Budget.

Financial and Resource Implications

This activity has been anticipated in the LGA’s work program and resources are available to progress this work.


Australian Local Government Association Limited ABN: 31 008 613 876

March Board Meeting Draft Minutes 23 March 2017

9.13am – 2.03pm

Present Myr David O’Loughlin Myr Damien Ryan Myr Doug Chipman Cr Keith Rhoades Cr Bill Pickering Cr Mary Lalios Cr David Clark Myr Karen WiIlliams Cr Matt Burnett Cr Lynne Craigie Myr Tracey Roberts Myr Dave Burgess Myr Lorraine Rosenberg Myr Daryl Quilliam

LGANT LGAT LGNSW LGNSW MAV MAV LGAQ LGAQ WALGA WALGA LGASA LGASA LGAT

President Vice President Vice President

In Attendance: Mr Adrian Beresford-Wylie Mr John Pritchard Ms Donna Rygate Mr Greg Hallam Ms Ricky Burges Ms Lisa Teburea Mr Tony Tapsell Ms Rosemary Hancock

ALGA ALGA LGNSW LGAQ WALGA LGASA LGANT MAV

Apologies: Myr Mark Jamieson Ms Katrena Stephenson Mr Matt Pinnegar

LGAQ LGAT LGASA


Item 1: Open and Welcome

The President opened the meeting at 9.13am, noting that a quorum was present. Carried

Item 2: Notification of Apologies

It was Moved Myr Rosenberg and Seconded Cr Craigie that the apology from Myr Jamieson be accepted and apologies from Matt Pinnegar and Katrena Stephenson noted.

Item 3: Adoption of Agenda

The agenda was adopted with the President foreshadowing that he would seek to bring forward two items to be dealt with while Cr Rhoades was present.

1. The Profile of ALGA; and2. ALGA Chief Executive Annual Performance Assessment

Item 4: Confirmation of minutes of meeting held on 9 November 2016

It was Moved Myr Quilliam and Seconded Myr Roberts that the Board agree that the record of the 9 November 2016 meeting be accepted.

Item 5: Action taken on 9 November 2016 Items

It was Moved Myr Ryan Seconded Myr Chipman that the Board note the action taken on items from the 9 November 2016 Board meeting.

Item 6: Business Arising

There was no business arising.

Item 7: Chief Executive’s Report

The Board was provided with a report from the Chief Executive on notable Secretariat activities, not otherwise reported under other agenda items, since the Board meeting on 9 November 2016.

It was Moved Myr Burgess and Seconded Myr Roberts that the report be noted. Carried

Item 7.1: Compliance

The Board was provided with information on compliance issues in accordance with the requirements of the Corporations Act and ALGA’s Constitution.

It was Moved Myr Burgess and Seconded Myr Roberts that the report be noted. Carried

Item 7.2: Financial Report for February 2017


The Board was provided with the Financial Report for the eight months to February 2017.

The result for the period indicates that ALGA continues to maintain a sound financial position. The Board noted the deficit for the month was $5,585 compared with a budgeted deficit of $5,327.

The Board also noted that the financial result for the year to date shows a surplus of $30,938 compared with a budgeted deficit of $26,735, a positive variance of $57,672 and that ALGA’s working capital ratio is 2.63 to 1.00.

It was Moved Myr Burgess and Seconded Myr Roberts that the Board accept the report for February 2017.

Carried

Item 8: ALGA and Association Presidents Reports

The ALGA President reported on relevant issues and activities since the November Board Meeting highlighting in particular the campaign being run by the Secretariat to secure the restoration of indexation of the Financial Assistance Grants. The Board discussed the campaign and supported a further approach to all Federal MP’s with a local government background.

It was Moved Myr Ryan and Seconded Cr Craigie that the ALGA President report be noted.

The Board considered the reports provided by state and territory association Presidents and it was moved Myr Roberts and Seconded Cr Pickering that the Association Presidents reports be noted.

Carried

Item 9: Report on Outcomes of Strategic Planning Meeting

It was Moved Myr Quilliam and Seconded Myr Burgess that the Board endorse the Australian Local Government Association revised Strategic Plan 2017– 2020, as amended.

Carried

Item 10: ALGA’s role in Indigenous Policy Issues

It was Moved Myr Burgess and Seconded Myr Ryan that the Board support ALGA’s ongoing work on Indigenous issues and the use of a Reference Group of association officers to advance that agenda.

Carried

11. Indigenous Constitutional Recognition

It was Moved Cr Craigie and Seconded Myr Williams that the Board note the correspondence from the Referendum Council, agree that ALGA should make a submission which is confined to process issues around public funding for referendums and agree that the Council’s call for Submissions be highlighted in ALGA News.


Carried

12. Women in Local Government

It was Moved Cr Lalios and Seconded Myr Roberts that the Board agree that ALGA invite state and territory associations to establish an officer-level group to share information and best practice on gender equity and diversity at the elected representative level, agree that ALGA, state and territory association CEOs include gender equity and diversity as an agenda item for discussion at their next meeting and note the work by ALGA and Associations to identify and submit potential local government women candidates for future appointment on Commonwealth Boards.

Carried

13. Smart Cities and Digital Transformation

It was Moved Myr Rosenberg and Seconded Myr Chipman that the Board:

1. Note the level of Commonwealth funding available for the Smart City initiative and the limitednumber of local governments that could potentially be involved.

2. Agree that the ALGA Secretariat maintain engagement with Prime Minister and Cabinetregarding the development of the Smart Cities agenda and act as a conduit for information tothe sector regarding smart cities, the Smart City and Suburbs program and the InfrastructureFinancing Unit.

3. Agree that ALGA advocate for more Commonwealth funding for a broader program of “smartcommunities”.

4. Agree that ALGA facilitate the exchange of information between state and territory associationsto gain a picture of capability and activity by local government across Australia relating to digitaltransformation, specifically to gain insights into the relative strength of our privacy and securitypolicies.

5. Agree that ALGA seek a position on the Cities Reference Group.6. Agree that ALGA works with state and territory associations to identify case studies to be

showcased at the National General Assembly and other relevant forums.7. Note the findings of the PC Inquiry into Data Availability and Use, particularly the implications

for councils of open data requirements and, importantly, and review the Government’sresponse to the PC report’s final recommendations expected in March 2017.

Carried

NOTE: At this point the Board agreed to bring forward items 22 and 23 for consideration.

22. The Profile of ALGA

It was Moved Myr Pickering and Seconded Myr Williams that the Board:

- note the importance of ALGA brand and profile;- agree to the development of a policy protocol on the ALGA President’s media

communications role noting that the President will avoid comment on state issues withoutprior agreement with the state President;

- note the importance of using ALGA profile and branding in dealing with the CommonwealthGovernment focus of ALGA; and

- agree that Association CEO’s consider further options to raise ALGA’s profile and reportback to the June Board Meeting.

Carried


23. ALGA Chief Executive Annual Performance Assessment

It was Moved Cr Rhoades Seconded Myr Chipman that the Board note the report of the Executive Committee on its assessment of the Chief Executives performance against measures outlines in his Contract of Employment, note the Executive Committee’s request for a more structured approach to succession planning, and endorse the Executive Committee’s assessment of the Chief Executive’s performance in 2016-17 as excellent and agree that the Chief Executives’ remuneration package for 2017-18 should be increased by 2.5%.

Carried

14. Value Capture and City Deals

It was Moved Myr Williams and Seconded Cr Craigie that the Board note the position put forward in the ALGA Submission of Value Capture, note the ongoing work with the state and territory associations and the Commonwealth on Value Capture and City Deals and agree that a further report be provided to the Board at its June meeting.

Carried

15. Road User Charging

It was Moved Myr Rosenberg and Seconded Myr Williams that the Board agree to consider the need for any consultancy on road user charging once the details of the Commonwealth’s study on the issue become clearer with the costs of any consultancy to be met from ALGA’s reserves.

Carried

16. Future Advocacy with Peak Bodies

It was Moved Myr Chipman and Seconded Myr Pickering that the Board endorse the wording of the second Joint Infrastructure Statement as amended, agree to its launch with participating peak bodies in the weeks leading up to the May Budget.

Carried

17. Local Government Asset Data

It was Moved Myr Chipman and Seconded Cr Craigie that the Board note the paper including the work on State of the Assets, and the future of the Restricted Access Vehicle Route Assessment Tool (RAVRAT), and agree that there be further negotiations with ARRB on the continued availability of the RAVRAT beyond 30 June 2017 based on the indicative figures provided; agree that ALGA approach the NHVR to fund the RAVRAT and that a business case proposal with cost benefit information be sought from ARRB and circulated to state association CEOs for consideration at their next meeting and advice to the Board on future funding arrangements for this project.


Carried

18. ALGA 2017-18 Draft Action Plan

It was Moved Cr Craigie and Seconded Myr Roberts That the Board endorse the Draft Action Plan 2017 – 18, Headline Priority Actions and KPIs, Australian Local Government Association, March 2017, as amended.

Carried

19. 2017-18 Draft ALGA Budget

It was Moved Myr Quilliam and Seconded Myr Ryan That the Board note the draft ALGA Budget for 2017-18.

Carried

20. ALGA Corporate Governance

It was Moved Myr Ryan and Seconded Cr Burnett that the Board endorse the revised Corporate Governance Charter as amended and note the revised ALGA Corporate Finance Policy.

Carried

21. ALGA Conferences

It was Moved Myr Pickering and Seconded Myr Burgess that the Board note the changes proposed to the format of the 2017 Regional Cooperation and Development Forum and the debate timing in the National General Assembly and agree to a greater emphasis on metropolitan issues at the 2017 Local Roads and Transport Congress.

Carried

24. 2017 National General Assembly of Local Government

It was Moved Myr Ryan and Seconded Myr Rosenberg that the Board note that planning is underway for the 2017 NGA and Regional Forum, and agree that the membership of the Board NGA Sub-Committee will consist of:

- ALGA President David O’Loughlin- ALGA VP Damien Ryan- ALGA VP Doug Chipman- Cr Keith Rhoades- Cr Mary Lalios

Carried

25. 2017 National Local Roads and Transport Congress


It was Moved Myr Rosenberg and Seconded Myr Ryan that the Board note that planning is underway for the 2017 National Local Roads and Transport Congress.

Carried

26. The Future of ALGA’s International Activities

It was Moved Myr Rosenberg and Seconded Cr Clark that the Board agree to terminate ALGA’s membership of UCLG-ASPAC and ICLEI with immediate effect.

Carried

The Board agree to terminate ALGA’s membership of CLGF with immediate effect. Lost

It was moved by Cr Burnett and Seconded Cr Clark that the Board agree to continue membership of CLGF but the Board review that membership after 12 months.

Carried

27. Ministerial Council Report

It was Moved Myr Ryan and Seconded Myr Roberts that the Board note the report.

28. ALGA Federal Budget Submission

It was Moved Myr Quilliam and Seconded Cr Craigie that the Board note the submission of ALGA's input to the 2017-18 Federal Budget.

29. Local Government Associations Research and Leading practice

It was moved Myr Ryan and Seconded Myr Burgess that the Board note the verbal report.

30. Other Business

There was no other business and the meeting closed at 2.03pm.



3.3 Report from the LGA CEO

LGA Updates

From: Matt Pinnegar, Chief Executive Officer

Meeting: LGA Board Date: 18 May 2017

ECM: 644755

Recommendation

That the LGA Board notes the report and receives a verbal update, if required.

Discussion

Staff Update

Following the announcement of Lea Bacon as Director Policy, Victoria Brown has been appointed as Senior Policy Advisor. Victoria has been working with the LGA for 4 years including with councils in the climate change area and has been successful in implementing the Science to Solutions Climate Change Program. In this new role, Victoria will undertake a senior role advising on a range of social, economic and environmental issues relevant to local government and will be supporting Directors Lea Bacon and Stephen Smith in the delivery of the LGA’s policy program.

A new full time position of a Digital Marketing Officer has been publicly advertised to recruit for a one year contract initially. The position will have a primary focus on developing strategies for the LGA’s online presence, identifying opportunities and industry best practice to continually enhance the LGA’s website and social media engagement, and to provide corporate communications support. Further information, including the advertisement and job description is available via http://www.lga.sa.gov.au/page.aspx?c=75714.

Port Adelaide Enfield Council has agreed for the LGA to second Senior Graphic Designer Christina Harous to assist with the LGA Communications team with the Awareness and Election Campaign for the next six months. This follows on from the successful secondment of Andrew Legrand from the City of Salisbury. Secondments enhance connectivity and understanding between the LGA and our members while also providing personal development opportunities. The cooperation of Charles Sturt and Salisbury is much appreciated.

Renegotiation of Insurances

I travelled to London with JLTA (Gary Okely) to participate in the renegotiation of insurances for the LGA Mutual Liability Schemes. Meetings were with some 18 underwriters, reinsurers and the global head of JLT and over a 4 day period.

Takeaways are that the insurance market is soft and reinsurers are struggling to write business and are therefore writing insurance premiums that may not be sustainable. This is evidenced in many of the second quarter profit results of Lloyd’s syndicates.



Catastrophic events such as bushfires and floods remain a key area of concern for reinsurers, and there was much interest in the LGA’s functional support group role, i-Responda program and LGRS risk reduction strategies. All underwriters were supportive ofthe mutual scheme that aggregates councils and spreads risk across many reinsurers.

A summary report on this matter will be provided to the Board at the meeting.

Premier’s Business Mission to China

From London I travelled direct to Beijing to meet up with the LGA President Mayor Lorraine Rosenberg to participate in the Premier’s business mission to China (as per the resolution of the January Board). A report on the mission will be provided at the meeting.

2017/18 State Budget submission

We’ve received widespread positive media coverage from the LGA’s 2017/18 State Budget submission.

This has included individual stories on seven of our submission’s twenty five specific requests in publications such as the Advertiser, Sunday Mail and InDaily, as well as in regional papers, and interviews on metro and regional radio.

Appointments to Outside Bodies – Update

Power Line Environment Committee (PLEC) - Advice from the Technical Regulator confirming the appointment Pam Andritsakis (Holdfast Bay) has been appointed to represent the LGA on PLEC until 4 March 2020.

Meetings | Media Interviews

I have attended the following meetings and media interviews since the last Board meeting:

March

14 Richard Nunn (Statewide Super)

Electoral Commissioner Michael Sherry, Leeanne Redpath, David Gully and Leela Quitko with Andrea Malone and Chris Russell re Local Government Elections 2018, candidates website and campaign donation returns.

Simon Bailey and Jared Simes (EML Legal)

15 Regular meeting with AWU & ASU with Grant Waldron

Premier’s Local Government Forum with President and Immediate Past President

16 SAROC & Board meetings and address by State Liberal Leader Steven Marshall MP

17 Commissioner for Kangaroo Island, Wendy Campana

20 Tony Gray (JLTA) with Kathy Jarrett re Schemes

21 Craig Fowler (SA Finance Authority) re LGFA Board



28 Michelle Hammond & Cr John Woodward re Statewide Super Board representation

29 Meeting with Jessica Leo (Editor, Messenger) with Darren Hunter (LGA Media Adviser)

LGA Procurement Board meeting

30 LGA Workers’ Compensation Scheme & Mutual Liability Scheme meetings

Meeting with CEO Paul Sutton (Charles Sturt)

31 Yorke & Mid North Regional Forum (Clare) with President

April

4 LGFA Board Induction

Interview with Leon Byner on 5AA re rate capping

6 Interview with Leon Byner on 5AA re SAPN and public lighting

7 Meeting with Legatus CEOs (Clare)

10 Meeting with Council CEOs Brian Carr and Geoff Whitbread re Schemes

11 Rates Awareness Campaign presentation to Campbelltown Council Executive Management Team

Return to Work SA evaluation opening meeting with Executive Director Corporate & Member Services

Meeting with Onkaparinga Media Officer Jim Tsacalakis with LGA Media officer Darren Hunter

12 Regular meeting with AWU & ASU with Grant Waldron

Meeting with Michael Robinson (Arc Blue)

Meeting with Neil Howells (Hudson Howells) re survey results

Dinner meeting with Peter Treloar MP

Regional LGA Executive Officers meeting

13 Meeting with John Comrie and Lisa Teburea

Meeting with Adam Wilson (ESCOSA) with Stephen Smith

18 LGFA Board meeting

Meeting with Stephan Knol MP with President

19 Meeting with ACC CEO Mark Goldstone & Mark Booth (Consultant)

Attended SA Migration Forum for Industry Leaders

20-21 LGA Showcase & OGM including hosting CEO breakfast

24 Meeting with Gary Okely re London insurance renegotiations trip

26 Attended Regional LGA Executive Officers meeting with Stephen Smith & Lea Bacon

Interview with Leon Byner on 5AA re LGA OGM and parking on verges



27 LGA Executive Committee meeting

Attended Lord Mayoral Reception – Colonel William Light’s Birthday

28 Meeting with ACC Acting CEO Steve Mathewson

May

1-5 LGA Insurance Renegotiations (London) with JLTA Gary Okely

8-15 Premier’s Business Mission to China with LGA President Mayor Lorraine Rosenberg

17 SAROC meeting at Alexandrina

18 LGA Board meeting



4.1 Report from the LGA Executive Committee

Reports from Bodies Established Pursuant to the LGA Constitution




Recommendation

That the LGA Board notes the draft minutes of the LGA Executive Committee meeting held on 27 April 2017.

Discussion

The draft public minutes of the LGA Executive Committee meeting held on 27 April 2017 are attached. The draft confidential minutes of the LGA Executive Committee meeting held on 27 April 2017 are listed under Confidential Reports within the confidential agenda for this meeting.


ECM 649820 Draft Minutes of the LGA Executive Committee meeting – 27 April 2017 Page 1 of 6

Draft Minutes of the LGA Executive Committee meeting held on Thursday 27 April 2017 at 12:00noon at Local Government House, 148 Frome Street, Adelaide.


The President opened the meeting at 12.07pm and welcomed members and staff.

1.1 Present

Mayor Lorraine Rosenberg LGA President

Mayor Dave Burgess Immediate Past President

Cr Sue Clearihan Vice President - metropolitan

Mayor Peter Hunt (via teleconference) Vice President - country

Mayor David Parkin Vice President - metropolitan

Mayor Erika Vickery (via teleconference) Vice President - country

LGA Secretariat:

Matt Pinnegar Chief Executive Officer

Kathy Jarrett Executive Director, Corporate & Member Services

Lisa Teburea Executive Director, Public Affairs

Andrea Malone Director, Legislation

Andrew Wroniak Director Corporate Services

Chantel Venn (until 2.30pm) Financial Consultant

Ben Swan (until 2.30pm) Senior Finance Officer

Astrid Crago Administration Coordinator (minutes)

1.2 Apologies

Nil



2 Minutes of Previous Meeting

2.1 Minutes of Meetings held on 23 and 27 February 2017 and Circular Resolutions of 10 March and 10 April 2017

Moved Mayor Hunt Seconded Cr Clearihan that the LGA Executive Committee confirms the minutes of the meetings held on 23 and 27 February 2017, and circular resolutions of 10 March and 10 April 2017, as true and accurate records of the proceedings held.

CARRIED

2.2 Business Arising

Nil

2.3 Resolutions and Actions from previous meetings

Moved Mayor Parkin Seconded Mayor Vickery that the LGA Executive Committee notes progress with resolutions resulting from its meetings of 23 and 27 February 2017 and outstanding resolutions from previous meetings.

CARRIED

3 Invited Guest Speakers

Nil.

4 Reports for Discussion

4.1 2017 / 18 Annual Business Plan and Budget

The Executive Director Corporate and Member Service introduced newly appointed Director Corporate Services, Andrew Wroniak and thanked Chantel Venn who had been acting in the role. Ms Jarrett advised members of the workshop process and guided them through the process.

Moved Cr Clearihan Seconded Mayor Vickery that the LGA Executive Committee:

1. notes and receives the report ‘Draft LGA Annual Business Plan and Budget2017/2018’;

2. requests the Secretariat to present the ‘Draft LGA Annual Business Plan andBudget 2017/2018’ to the 9 May Audit Committee meeting and subsequently tothe 16 May 2017 Board meeting updated on the following basis:

a. Business cases for two additional positions

b. Commentary on building upgrades, including solar



c. 1 x vehicle changeover

d. Business case for an IT server upgrade

e. A subscription fee increase @ 2.5%

f. Employee costs up by 2%

g. Audit Committee fees based on 2016/17 fees

h. Business case for LGA Board fees increase

CARRIED

2.30pm Cr Clearihan left the room

2.30pm Ms Venn and Mr Swan left the room.

4.2 Rates Awareness Campaign

The Executive Director and CEO gave verbal updates.

2.36pm Cr Clearihan returned to the room

Moved Mayor Burgess Seconded Mayor Parkin that the LGA Executive Committee:


2. notes the activities of the secretariat in implementing the LGA Rates AwarenessCampaign with councils; and

3. notes that all major South Australian political parties have been briefed on thecampaign and encouraged to continue engaging with the LGA on localgovernment policy and reform options.

CARRIED

4.3 Register of Salaries Guidelines

Moved Mayor Hunt Seconded Mayor Parkin that the LGA Executive Committee:

1. endorses the Register of Salaries Guidelines; and

2. notes the imminent release of the CEO Remuneration Survey Report.

CARRIED

4.4 LGA Approval of Stormwater Management Authority Board Code of Ethics

2.43pm As a member of the Stormwater Management Authority Board the LGA President declared an interest, vacated the chair and left the room.

The Executive Director Corporate & Member Services, Kathy Jarrett called for nominations for chairperson from those members present. Mayor Parkin nominated Mayor Dave Burgess, who accepted the nomination.



Moved Mayor Parkin Seconded Cr Clearihan that the Immediate Past President, Mayor Burgess assume the chair for Item 4.4.

CARRIED

Mayor Burgess assumed the role of chair of the meeting.

Moved Cr Clearihan Seconded Mayor Parkin that the LGA Executive Committee:


2. endorses the Stormwater Management Authority Board Code of Ethics.

CARRIED

2.44pm The President returned to the room and resumed the role of chair of the meeting.

5 Nominations to Outside Bodies

Nil.

6 Confidential Reports

6.1 Confidential Minutes of meeting held on 23 February 2017

Moved Mayor Burgess Seconded Mayor Vickery that the LGA Executive Committee:

1. resolves to consider Agenda Item 6.1 – Confidential Minutes of Meeting held on23 February 2017 in confidence because it is:

confidential commercial information which could reasonably be expectedto prejudice the commercial position of the person who provided theinformation or confer a commercial advantage on a third party and whichwould, on balance, be contrary to the public interest (Item 6.2); and

information that the release of which could prejudice the LGA’s strategicor negotiation position (Item 7.1); and

2. orders all observers at the meeting, with the exception of staff on duty, beexcluded from attendance at the meeting for Agenda Item 6.1 – ConfidentialMinutes of Meeting held on 23 February 2017.

CARRIED

There were no observers present to leave the meeting.

Moved Mayor Hunt Seconded Mayor Burgess that the LGA Executive Committee confirms the confidential minutes of the LGA Executive Committee meeting held 23 February 2017 as a true and accurate record of the proceedings held.

CARRIED



Moved Mayor Burgess Seconded Mayor Hunt that the LGA Executive Committee moves out of confidence and having considered Agenda Item 6.1 - Confidential Minutes of Meeting held on 23 February 2017 in confidence resolves to retain the attachment in confidence within the parameters of the original resolutions contained within.

CARRIED

6.2 Public Lighting Update

Moved Mayor Hunt Seconded Cr Clearihan that the LGA Executive Committee:

1. resolves to consider Agenda Item 6.2 - Public Lighting Update in confidencebeing satisfied that the information received, discussed or considered in relationto Agenda Item 6.2 is information the release of which could prejudice theLGA’s strategic or negotiating position; and

2. orders all observers at the meeting, with the exception of staff on duty and nonvoting deputies be excluded from attendance at the meeting for Agenda Item6.2 - Public Lighting Update.

CARRIED

There were no observers present to leave the meeting.

Refer to Confidential Minutes.

Moved Cr Clearihan Seconded Mayor Hunt that the LGA Executive Committee moves out of confidence and having considered Agenda Item 6.2 - Public Lighting Update in confidence resolves to retain the report and resolution in confidence until the matter is settled because it is information, the release of which could prejudice the LGA’s strategic or negotiation position.

CARRIED

7 Late Reports

7.1 LGA Indemnity Scheme Management Fee

The Executive Director, Corporate & Member Services withdrew this item.

8 Any Other Business

8.1 Coober Pedy Council

CEO Matt Pinnegar gave a verbal update on the status of Coober Pedy Council.



8.2 LGA President costs for China Delegation

The Executive Director Corporate & Member Services, requested support from the Committee for the President’s associated costs while representing the LGA during the China delegation.

Moved Mayor Burgess Seconded Mayor Hunt that the LGA Executive Committee gives approval for reimbursement of reasonable costs for the LGA President during the upcoming China Delegation trip including provision for international telephone roaming.

CARRIED

9 Next Meeting The next meeting of the LGA Executive Committee will be held on Thursday, 15 June 2017 at Local Government House, 148 Frome Street, Adelaide, commencing at 12.00noon.

10 Close

The meeting was declared closed at 3.05pm.

Minutes confirmed

…………………………………….

Chairperson signature

Date ………………………………



4.2 Report from the Metropolitan Local Government Group


From: Stephen Smith, Director Policy


ECM: 650231 Attachment: to be tabled

Recommendation

That the LGA Board notes the key outcomes summary of the Metropolitan Local Government Group meeting held on 10 May 2017.

Discussion

The key outcomes summary of the Metropolitan Local Government Group meeting held on 10 May 2017 and recommendations to the LGA Board contained therein will be tabled at the meeting. A verbal update will be given by the Chair of the Metropolitan Local Government Group.



4.3 Report from the South Australian Regional Organisation of Councils (SAROC) Committee


From: Lea Bacon, Director Policy


ECM: 650235 Attachment: to be tabled

Recommendation

That the LGA Board receives the key outcomes summary of the SAROC Committee meeting held on 17 May 2017.

Discussion

The key outcomes summary of the SAROC Committee meeting held on 17 May 2017 will be tabled at the meeting. A verbal update will be given and any recommendations from the Committee will be conveyed by the Chair for the Board to consider.



7.2 Proposal to amend the Local Government (Elections) Act to require ECSA to mail out information about candidates elected unopposed.

From: Gwyn Rimmington, Senior Policy Officer


Strategy: 1A Listen to, and represent members


ECM: 650154

Recommendation

That the LGA Board:


2. endorses a proposal for the Electoral Commission SA to make available tothe LGA a copy of the ‘candidate profile’ of those candidates who have beenelected unopposed; and

3 endorses the proposal to have these ‘candidate profiles’ of unopposedcandidates included on the LGA Candidates Website.

Discussion

Following discussion at the LGA Board, the LGA Secretariat has consulted with member councils on a proposal to seek an amendment to the Local Government (Elections) Act 1999 (the Act) to require Electoral Commission SA (ECSA) to mail out information to voters about candidates who have been elected unopposed. See LGA Circular 12.1

The rationale for this proposed change is that community members do not receive ballot papers (because there is no election where candidates are elected unopposed) and are therefore not made aware of who those candidates are.

The LGA sought the views of ECSA and was informed that this proposal would incur additional costs that would have to be borne by councils.

The LGA consulted on the proposal and three other options for achieving a higher community profile for candidates elected unopposed that would not incur costs and/or would leave the decision to councils.

In total 17 councils responded to the invitation to provide feedback on the proposal, nine metropolitan and eight regional.

Two responses supported the original proposal to have ECSA mail out information and the other 15 did not support it. The majority of responses favoured the publication of relevant information on the LGA Candidates Website and leaving the decision about whether to mail out the information and/or publish it in some other way (for example community newsletter, council website) with individual councils.



Noting the input from member councils, it is recommended that the LGA Board endorses the alternative proposal to require ECSA to make available to the LGA a copy of the ‘candidate profiles’ for those candidates who have been elected to councils unopposed, to enable these candidate profiles to be included on the LGA Candidates Website.

If this recommendation is carried, the LGA Secretariat will raise the proposal with the Office of Local Government as part of the review of the Local Government (Elections) Act, which is currently on foot.





7.3 Proposal to Change the Voting Method for Local Government Elections

Reports for Discussion

From: Andrea Malone, Director Legislation




ECM: 649206

Recommendation

That the LGA Board:

1. notes the report; and2. notes that the LGA will take no further action at this time.

Discussion

At its meeting of 8 March 2017, the Metropolitan Local Government Group (MLGG) resolved to recommend consultation on a proposal to change the voting method at local government elections. The proposal would require an amendment to the Local Government (Elections) Act 1999, which is currently under review.

The LGA board endorsed the resolution at its meeting of 16 March 2017 and the Secretariat issued Circular 12.10 seeking feedback on the proposal. The Circular included information provided by the Mayor of Adelaide Hills Council, who had lodged the proposal and carried out research on the issue.

The current voting method for local government elections is known as partial preferential voting and requires a voter to mark a ballot paper by numbering boxes consecutively with the number of boxes marked at least equal to the number of candidates standing for election in the council area or the ward (as the case may be).

The proposed change is for the voting method to become what is known as optional preferential voting, which would require a voter to number at least one box, with the option of voting for more candidates if desired.

Comments from the Electoral Commissioner indicated that the latter method could lead to great vote exhaustion and mean the election of more candidates who do not reach the set quota of votes. However, research by the Mayor of the Adelaide Hills Council (Circular 12.10) revealed that under the current voting method there were a significant number of candidates elected under quota in the 2014 elections.

The LGA consultation received 22 responses from councils. Eleven councils supported the change and nine councils opposed the change. Two other councils declined to form a view on the question on the grounds that they did not have access to expert commentary on the proposal. They requested that ECSA develop a discussion paper that outlines the



advantages and disadvantages of the options. This request was also supported by one of the councils that voted against the proposed change.

Conclusion

The proposal to change the voting method for local government elections may need further explication in order to provide councils with information about the implications of the change, to enable them to make an informed decision. The responses to the consultation were very evenly divided, with no clear outcome.

The Office of Local Government has advised that any proposal to change to voting methods will not be included in the current suite of amendments to the Local Government (Elections) Act because of timing constraints.

The Secretariat has no internal expertise on voting methods and is not currently in a position to develop a more comprehensive discussion paper on the implications that may flow from changing the voting method along the lines suggested by Adelaide Hills. ECSA is unlikely to agree to undertake the work to develop a discussion paper, given the imminent state elections in March 2018, followed by the local government elections in November. However, this project could fruitfully form the basis of an application by a council or councils to the Local Government Research and Development Fund in future funding rounds. The funding could be used to engage an expert in the field of psephology to develop discussion paper, which would analyse the pros and cons of the proposal and assist in developing a clear local government position.


The development of a discussion paper has not been anticipated in the LGA’s work program and resources are not available to progress this work.



7.4 Draft Heads of Agreement between EPA and LGA

Report for Discussion

From: Simon Thompson, Senior Policy Officer





Recommendation

That the LGA Board:


2. notes that the EPA CEO presented to the 23 February 2017 ExecutiveCommittee meeting regarding the proposed LGA / EPA Heads of Agreementand other relevant matters; and

3. authorises the LGA CEO to sign the Heads of Agreement (contained withinthe agenda) between the LGA and the Environment Protection Authority(EPA).

Discussion

Background

A draft Heads of Agreement between the LGA and Environment Protection Authority (EPA) was presented to the 17 November 2016 LGA Board meeting with a view to endorsing the proposal and allowing the LGA CEO to finalise the agreement with the EPA. This motion was not passed by the Board, as it was felt further information was required. The EPA Chief Executive has since presented to the LGA Executive Committee and the Agreement has been revised.

Heads of Agreement

Many of the roles and functions of councils are regulated by or involve the EPA. This includes water management, nuisance management, planning referrals and contaminated sites. Feedback from members is that there is a need for clarity around where the roles of councils and the EPA stop and start.

In an attempt to reduce confusion around roles and responsibilities, the LGA and EPA have been in ongoing discussions to develop a standing Heads of Agreement (Agreement). This Agreement is not legally binding between the parties and does not override or impact on the roles and functions prescribed in legislation. The Agreement does not bind the LGA to fund any activities that have not already been contemplated in the current work program.



The objectives of this agreement include:

recognise the collective commitment of the parties to work together in promotingbetter environmental outcomes through continuous improvement in environmentalpolicies and regulatory practices based on values of mutual respect;

open communication and meaningful engagement. In particular, the Agreementseeks to provide for clarity and certainty to the parties and the community aboutrespective roles and responsibilities of the EPA and local councils for environmentalprotection; and

provide a framework for the EPA and the LGA to work together on dealing withcommon issues and challenges and to coordinate decision-making on matters ofshared interest.

EPA CEO presentation to LGA Executive Committee

The EPA Chief Executive Mr Tony Circelli presented to the LGA Executive Committee to provide further background to the Agreement, discussion on how the EPA and local government sector can strengthen its relationship and other related matters.

After this presentation, the Executive Committee adopted the following resolution:

1. notes the report and delegates to the Secretariat to do further work on themanagement and monitoring on the effectiveness of the agreement in managing therelationship between local government and the EPA; and

2. resolves to refer the draft Heads of Agreement between the LGA and theEnvironmental Protection Authority to the May 2017 meeting of the LGA Board for re-consideration.

Future

In response to the resolution of the Executive Committee, the Agreement has been updated to include performance measures to increase accountability and to allow for measurement of the effectiveness of the agreement over time. These measures are in the attached draft Agreement in track changes, and include:

EPA and LGA Executive level representatives to meet at least once each quarter todiscuss progress against the agreement and other issues relevant to its scope,objectives and principles;

ensure all councils are provided the opportunity to receive guidance materials andattend training;

communication and engagement of significant local issues is undertaken as efficientlyas possible by councils and the EPA to achieve the best outcomes for an affectedcommunity;

ensure all councils are provided with education materials relating to developmentplanning and assessment that effectively promote the principles of ecologicallysustainable development as defined in the Environment Protection Act 1993;

ensure all councils have access to materials that will assist them in their role with sitecontamination investigations as well as guidance and education materials for use bycouncils on managing legacy site contamination issues;

initial 12 month review period and two-yearly review thereafter (or as mutually agreedbetween the two parties); and



annual EPA/local government forum to allow senior council staff and electedmembers to discuss shared strategic and operational objectives with senior EPA staffand Board members.

The LGA secretariat is of the view that by entering in to this Agreement, accountability on both parties can be improved, which in turn will provide benefit to the local government sector. All items covered in the Agreement have been raised by councils in recent times as issues that require improvement.

A draft of this Agreement is attached for consideration and the Board’s authorisation to sign the Agreement is sought.




Heads of Agreement An Agreement between the

LOCAL GOVERNMENT ASSOCIATION

and

ENVIRONMENT PROTECTION AUTHORITY

2017 - 2021

LGA

Logo

EPA

Logo


Contents

Preamble

Scope

Objectives

Principles

Training and Development

Engagement and Communication

Development Planning and Assessment

Site Contamination

Policy and Legislation

Shedules

Schedule 1: State – Local Government Relations: An agreement between the State Government and Local Government in South Australia 2015


LGA‐EPA Heads of Agreement

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PREAMBLE

This Agreement is made between the Local Government Association of South Australia (LGA) and the South Australia Environment Protection Authority (EPA) to define the roles and responsibilities of the two organisations in supporting each other and local councils in the delivery of services relating to environmental protection.

The Agreement consists of a scope, objectives and principles to guide the relationship between the LGA and the EPA. It also provides practical guidance on how the relationhip will operate in respect of key areas.

The Agreement is considerate of, and consistent with, the principles and commitments of the State-Local Government Relations Agreement, January 2015.

The Agreement will be reviewed after the first twelve month and each five two years after that, unless one of the parties request an earlier review.

SCOPE

This Agreement relates to matters in which the EPA and LGA can work together to contribute to decision-making and the efficient delivery of services and information associated with environmental protection to local communities by the EPA and local councils.

It is acknowledged that local councils and the EPA have powers and duties that complement each other in contributing towards the protection of the environment and enhancing the quality of life of local communities. The Agreement provides greater clarity in this regard.

The LGA and the EPA acknowledge the benefits that come from working together to ensure the EPA and local councils provide services and information to each other and to the community in a manner that enables good decision-making and provide certainty and clarity to communities.

This Agreement does not create a legally binding relationship between the parties, nor does it override or impact on commitments entered into as part of existing or future Agreements and legislation. Legislative obligations that are required to be met by the LGA, EPA and/or local councils take precedence over any possible conflict of instructions that this Agreement may present.

The EPA does regulate local councils for some activities as per the Environment Protection Act 1993 and the Radiation Protection and Control Act 1982. This Agreement does not impact on that relationship.

Unless otherwise stated, the allocation of resources to meet the obligations within this Agreement will be provided in-kind.



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OBJECTIVES

This Agreement recognises the collective commitment of the parties to work together in promoting better environmental outcomes through continuous improvement in environmental policies and regulatory practices based on values of mutual respect, open communication and meaningful engagement.

In particular, the Agreement seeks to provide for clarity and certainty to the parties and the community about respective roles and responsibilities of the EPA and local councils for environmental protection.

The Agreement also provides a framework for the EPA and the LGA to work together on dealing with common issues and challenges and to coordinate decision-making on matters of shared interest.

PRINCIPLES

The EPA commits to:

Provide regulatory certainty, clarity and consistency. Actively engage with the LGA and local councils in the design, implementation

and evaluation of policies, tools and approaches. Provide timely, easy-to-understand, targeted information to LGA and local

councils about requirements and priorities. Provide reasonable timeframes to respond on matters being consulted. Assist local councils with training, advice and equipment (where possible) to

undertake their responsibilities. Develop and maintain operational protocols and other guidance material on

key issues of common interest.

The LGA commits to:

Promote awareness and understanding of the EPA’s role, requirements andpriorities amongst local councils.

Encourage participation by its member councils in the design, implementationand evaluation of environmental protection policies, tools and approaches

Proactively identify potential areas of concern between the EPA and localcouncils and facilitate early and cooperative action to resolve them.

Facilitate best practice in local councils in relation to environmental protection,including through participation in joint EPA/Local Government WorkingGroups1.

Performance Measure

EPA and LGA Executive level representatives to meet at least once each quarter to discuss progress against this Agreement and other issues relevant to its scope, objectives and principles.

1 http://www.lga.sa.gov.au/page.aspx?u=1398#e3639



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TRAINING & DEVELOPMENT

Guidance materials

The EPA will prepare and provide guidance material to support local councils in their environment protection roles and make the information available online and directly to local councils and the LGA.

The LGA will make the information available through its website and actively promote the availability and relevance of the material to local councils.

Training

The EPA will provide training to council officers to assist them in the undertaking of their roles, including through equipment use, interpretation and use of information collected from equipment, and the interpretation and implementation of relevant legislation.

The LGA will actively promote the training and assist in coordinating or arranging facilities and times for the training to be held.

In particular, the EPA will:

prepare factsheets, guidelines, and standard operating procedures to assistlocal councils in managing local environmental nuisance issues

lend equipment such as noise meters and surveillance cameras and providetraining in its use

manage a referral desk to facilitate effective transfer of complaints that aredetermined to be more serious than nuisance

design and coordinate a training program tailored to local councils thatprovide basic as well as targeted compliance training to council officers

make available an EPA officer to work with local councils on implementationof local nuisance and litter control legislation for a to be determined period oftime.

In particular, the LGA will:

promote the availability of EPA guidance materials, training and equipment toits members.

support training through the coordination of training sessions and venues(where necessary).

making available a register of equipment and promote the use of theequipment, including through provision of relevant contact details.

assess local council training needs in relation to environmental protection andwork with the EPA to provide targeted training

Performance Measure

Ensure all Councils are provided the opportunity to receive guidance materials and attend training.



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ENGAGEMENT AND COMMUNICATION

The EPA acknowledges the significant role local councils play in communicating to and engaging with their community and the importance for the EPA to provide timely advice and relevant information to local councils.

The LGA acknowledges its role in assisting with identifiying the information needs of local councils and communicating it to the EPA.

The EPA and LGA will work collaboratively to ensure local councils are kept well informed to assist local councils in undertaking their responsibilities and to develop the most efficient and effective communication and engagement program that utilises the relationship local councils have with their community.

The LGA acknowledges that issues dealt with by the EPA may require communication and engagement to be undertaken in a sensitive manner, particularly as it relates to potential impacts on individual properties and their residents, including, but not limited to, site contamination investigations.

It is important that such information is provided in a timely manner so that local councils are provided the best opportunity to contribute to the development of support and engagement programs sensitive to the impacts on individual households. To ensure the needs of directly impacted residents are prioritised, it may be necessary that information is embargoed from public release until key players, including local councils, are informed.

Performance Measure

Inclusion of Councils to ensure communication and engagement for significant local issues are undertaken as efficiently as possible by Council and the EPA to achieve the best outcomes for an affected community.

An annual event to be collaboratively coordinated by the LGA and the EPA to provide for broader engagement with councils to discuss shared strategic and operational objectives.

DEVELOPMENT PLANNING AND ASSESSMENT

The EPA’s overarching goal for its interaction with the planning system is to promote the principles of ecologically sustainable development as defined in the Environment Protection Act 1993 by ensuring that these principles are appropriately considered and reflected at each stage of the planning system.

The EPA and LGA recognise that local councils play an important role in making development and planning decisions with potentially significant impacts on environmental quality and amenity.

The EPA commits to focus its resources and efforts more strongly on early engagement at the strategic planning and policy development stages, including through the development of policy statements that articulate its position on key environmental issues. This should provide greater certainty and consistency of environmental protection expectations and requirements in planning policy. A



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signifgicant component of this approach is a new risk-based framework for consideration of site contamination within the planning system.

To this end, the EPA and LGA will work together to build more influential relationships with local councils. Specifically, the EPA will develop education materials for use by member local councils and the LGA will commit to promote and provide these material to local councils.

Performance Measure

Ensure all Councils are provided education materials relating to development planning and assessment that effectively promote the principles of ecologically sustainable development as defined in the Environment Protection Act 1993.

SITE CONTAMINATION

The LGA and EPA recognise that dealing with the legacy of site contamination and managing its impacts can be complex and challenging. Local councils are likely to become involved in site contamination issues through their role as planning authorities, as land owners and when a risk to public health is identified from sites under investigation by either third parties or the EPA.

The EPA is responsible for the administration of the site contamination components of the Environment Protection Act 1993 and will undertake the lead role in ensuring the management of site contamination investigations are undertaken appropriately either directly or by a third party.

Local councils have an important role in reducing the risk of exposure to the public and the environment from site contamination in their role as planning authorities. Historical information about land uses and activities is an important tool in understanding risks that may be associated with the land when making decisions about changes in use.

The EPA and LGA recognise that local councils also have a role in the management of site contamination through their role of local public health authorities under the Public Health Act 2011. This includes taking action to protect public health and identify risks to public health such as through provision of information.

The EPA, and the Department of Planning, Transport and Infrastructure (DPTI), in consultation with industry and local councils, has developed a new site contamination framework. The key principle of the new framework is to closely align the degree of investigation work with the level of risk. This will achieve better connection with the planning system and ensures the EPA identifies higher risk assessment sites that it will manage when necessary, reducing the risk to Councils.

The EPA will develop information to assist local councils in their role with site contamination investigations and to complement the EPA Stakeholder Engagement Delivery Framework that will guide all responsible parties in relation to site contamination. The LGA undertakes to promote these material to local councils.



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The EPA will develop new guidance and education materials for use by local councils on managing legacy site contamination issues and the LGA will promote and provide these material to local councils. The EPA will continue to provide and improve access to information about site contamination to all parties.

The LGA acknowledges its role in assisting with the provision of information and advice to the local government sector in relation to maintaining information on potentially contaminating land uses and activities within their areas.

Performance Measure

Ensure all councils have access to materials that will assist them in their role with site contamination investigations as well as guidance and education materials for use by local councils on managing legacy site contamination issues.

POLICY AND LEGISLATION

General

The EPA and LGA are committed to the consultation process on legislative proposals that form part of the State-Local Government Relation Agreement 2015 and to the joint development of guidance to assist local councils in the carrying out of their responsibilities in relation to administering legislation related to the protection of the environment and public health.

Local Nuisance and Litter Control Legislation

The LGA will work with the EPA to develop appropriate referral processes and guidelines, including through the setting up of a joint working group, to support implementation of the legislation.

As mentioned earlier in this document, the EPA will also:

prepare factsheets, guidelines, and standard operating procedures to assistlocal councils in managing local environmental nuisance issues

manage a referral desk to facilitate effective transfer of complaints that aredetermined to be more serious than nuisance

design and coordinate a training program tailored to local councils thatprovide basic as well as targeted compliance training to council officers

make available an EPA officer for an agreed period of time to work with localcouncils on implementation of the legislation



7.5 Review of the State NRM Plan


From: Stephen Smith, Director Policy


Strategy: 1B Contribute to state-wide and local policy



Recommendation

That the LGA Board:


2. endorses the framework of the LGA’s submission on the Review of theState NRM Plan; and

3. authorises the LGA Chief Executive Officer and LGA President to finalisean LGA submission on the review of the State NRM Plan.

Discussion

The State Natural Resources Management Plan 2012-2017 “Our Place Our Future” (State NRM Plan) was adopted in June 2012. Under the Natural Resources Management Act 2004, the Minister must review the State NRM Plan at least once every five years.

The Department of Environment, Water and Natural Resources (DEWNR), on behalf of the Minister, is seeking feedback on whether the State Natural Resources Management Plan should be amended to better achieve the goals and reflect the objects of the Natural Resources Management Act 2004.

Over the last six months, DEWNR has been working with NRM Boards, Primary Producers SA, Conservation Council of SA, Local Government Association of SA and state government agencies to undertake the first phase of a review of the State NRM Plan.

This work has informed draft findings and recommendations, which are outlined in the attached review document.

The draft findings and recommendations represent the range of views expressed by these partner organisations. While there has been consensus on many issues, there remain a number of issues that require further consideration.

Input provided through this engagement process will help shape the final findings and recommendations of the review of the State NRM Plan. The final report will be provided to the Minister for Sustainability, Environment and Conservation for consideration by June 2017.

The LGA Policy Manual contains the following principles and policies relating to natural resource management, which will form the basis of the submission.



Principles

1. Local Government has a long standing and ongoing commitment to environmentaland natural resource management, enshrined in legislation and reinforced bycommunity expectations.

2. Local Government recognises the need to work with State and Federal governments,the community, and business sector, to better address environmental and naturalresource management issues including resource conservation, community access,ecologically sustainable development and climate change.

3. Local Government recognises that it needs to continue to adopt and promoteenvironmentally responsible and sustainable approaches to carrying out its roles andresponsibilities.

Policy

1. Local Government supports the concept of an Australia-wide network of conservationreserves, recognising the intrinsic value of such resources, their role in protectingAustralia's unique flora, fauna and ecological systems and their importance to theAustralian psyche and economy.

2. Designated conservation reserves, crown lands and transport corridors owned andmanaged by the State and or Federal Government should be adequately resourcedto enable proper management and ensure adequate noxious weed and feral animalcontrol, while balancing recreational access to ensure these areas are recognisedand valued by the community.

3. Local Government supports rail, roadside and reserve vegetation programs.

4. Incentives and activities in relation to native vegetation retention and revegetationshould be encouraged, subject to practical considerations concerning the provisionand maintenance of community infrastructure.

5. Local Government supports a balance between the protection of native vegetation,planning and development and bushfire prevention strategies for the protection ofcommunities.

6. Local Government supports the concept of integrated Natural Resource Management(NRM) as a co-operative mechanism to develop and implement ecologicallysustainable use of the State's natural resources and environment.

7. Local Government will work cooperatively with regional NRM boards in areas ormatters of mutual interest or concern and actively seek opportunities for joint NRMplanning and delivery of NRM projects where all parties will benefit.

8. Sharing of information, data, and other resources between NRM Boards and Councilswill be based on mutually agreeable terms.

9. Local Government supports initiatives for ecologically sustainable management of theState's natural resources, including programs related to the management andprotection of land, coasts, estuarine, marine, water, vegetation and soil.

Based on the information in the Draft Review Document “Review of the State NRM Plan – Our Place Our Future 2012 – 2017”, input will be provided on:

1) Do you think that the State NRM Plan should be updated?

a) Yes. As discussed in the Review, the State NRM Plan needs to be influential and setthe overall policy for the sustainable management of natural resources. State-levelpriorities are a key part of this.



b) The State NRM Plan should not be a static document being reviewed every five orten years. As a state policy document it should include a framework to enableregularly updating to incorporate policies to address emerging NRM issues andthreats.

c) The alignment between the State NRM Plan and regional plans need to be improvedto enable issues of state significance to be identified in regional plans and to clearlyspecify how they will be addressed at the regional level.

d) There should be more emphasis on the development and implementation of the StateNRM Plan particularly to guide the development of regional NRM plans, therebyreducing the amount of planning and planning costs on regional bodies in their NRMplanning.

e) The updated plan should be based on an adaptive management approach, basingdecisions on the best available information, allowing for innovation and involvingcommunities in decision making.

2) What natural resources management topics should a future State NRM Planaddress?

a) State-wide polices should include:

i) Management of native and non-native abundant species.

ii) Water resources and water quality.

iii) Management of pest species (biosecurity).

iv) Climate change adaptation and mitigation measures.

v) Coastal management.

vi) Maintenance of primary production land – (land use conflict and urbanencroachment).

3) Should a future State NRM Plan include state-wide policies on particular subjectmatters? If so, what types of state-wide policies would be most useful?

a) The NRM topics identified above should be addressed and developed as state-widepolicies.

b) The State NRM plan should inform and advise other state plans and policies forexample the 30-Year Plan for Greater Adelaide.

c) The State NRM Plan should provide the framework for reporting outcomes at thestate and regional level and be made available to local government to enable it todetermine appropriate levels of NRM actions.

d) The reporting framework should be designed to enable local government authoritiesand others to receive and also input information to enable a greater level of reporting.Any reporting framework should be easily accessible and at no cost to users.

4) What format (e.g. single or multiple volumes) would be most useful for a futureState NRM plan?

a) Multiple volumes for easier updating and targeting of content is supported.

b) The State NRM Plan should provide as a volume of the State NRM Plan a detailedState of the Environment volume, reducing the requirement for regional plans tocontain similar information. The State NRM Plan volume can be regionally based andalso linked with the EPA SOE reporting to avoid further duplication.



c) An annual business plan should be developed and published which identifies theNRM issues and threats to be addressed at state and regional levels, the type ofactions to address the threats and the funding requirement and source.

d) Research and development requirements to address emerging threats andconsiderations should be incorporated in the annual business plan to provideguidance to research institutions as to where research needs are required.

The following additional key considerations will also be included in the submission:

1. Local government is a significant landholder/manager within the state and acknowledgesits NRM responsibilities, as a significant landholder/manager local government must bemore involved in involved in setting NRM objectives and outcomes at a statewide level.

2. Local Government is the level of government closest to the community, therefore:

a. there should be greater engagement and collaboration at the regional NRM levelwith local government on the delivery of NRM outcomes. State governmentagencies and NRM boards need to work more closely with local government toachieve sustainable NRM outcomes.

b. local government and local communities need to be involved in developing andimplementing regional and state deliverables.

c. a revised decentralised model of implementing the state and regional NRM plansneeds to be considered with more autonomy and decision making provided at aregional level and regional NRM organisations and state agencies working moreclosely with local government to achieve outcomes.

Results can be achieved through all levels of government, communities, research institutions and business working together.

3. Local government recognises that NRM priorities are not spread evenly across the stateand a rethink of investment approach is needed. The development of a statewide annualbusiness plan with priorities, actions and statewide investment provides the impetus for abroader statewide levy collection approach rather than the current regional approach,which requires local government to collect the NRM levy on behalf of the NRM Boards.

4. The NRM Council should be re-established with more local government involvement toprovide greater direction as to where NRM investment can occur at a state and locallevel.

5. To improve efficiencies and outcomes the coast protection responsibilities under theCoast Protection Act and native vegetation responsibilities under the Native VegetationAct should be incorporated into the State NRM Plan and managed through a single boardrather than the multiples boards as currently exist.

Councils have been asked through Circular 14.2 to provide responses for an LGA submission by 17 May 2017 with submissions due by 31 May 2017. Comments provided by councils will be incorporated in the final submission, which will be approved by the LGA Chief Executive Officer and LGA President.




Review of the State NRM Plan: Our Place Our Future 2012 - 2017 Phase 2: – Draft Findings and Recommendations – March 2017

The review of the State NRM Plan acknowledges the Aboriginal Nations of South Australia;

the Aboriginal Customary Owners and the role their respective Nations continue to have in

purposefully shaping and caring for the area that we now know as South Australia.

While acknowledging the damage and dislocation that Aboriginal people continue to

experience, the review of the State NRM Plan respects different Aboriginal Nations rights,

interests and obligations to continue to speak for, and care for Country in accordance with

customary laws, beliefs and traditions.

And above all, the review of the State NRM Plan seeks to foster greater relationship with all

South Australians to work together for a better future. Particularly in enabling partnerships

that support and encourage Aboriginal Nations to continue to take a leading role in natural

resources management.

The Department of Environment, Water and Natural Resources (DEWNR) (on behalf of the Minister) is

seeking views on whether the State Natural Resources Management Plan 2012-2017 ‘Our Place Our Future’

(State NRM Plan) should be amended to better achieve the goals of the Natural Resources Management Act

2004.

Natural resources management (NRM) in South Australia has evolved significantly since the current State

NRM Plan was adopted in 2012. Regional-scale planning and on-ground efforts by landholders,

conservationists and others, the engine-room of natural resources management, have evolved and it is

timely to review whether the State NRM Plan remains fit-for-purpose to guide action.

In 2016, a range of partners across the state developed the SA NRM Investment Strategy that committed to

achieving excellence in collaborative management of natural resources that supports prosperous business

and community well-being, protects valuable natural assets and demonstrates global leadership. This

partnership includes Natural Resources Management boards, Primary Producers SA, Conservation Council

of SA, Local Government Association of SA, Landcare Association of SA, Primary Industries and Regions SA

and DEWNR.

DEWNR has worked with these partners and several other stakeholders, to undertake the first phase of a

review of the State NRM Plan. The draft findings and recommendations outlined in this document aim to

represent the range of views expressed by these partner organisations. While there has been significant

consensus on many issues, there remain a number of issues that require further consideration. DEWNR now

seeks a broader range of views on these initial draft findings.


Following this consultation phase, DEWNR will consider all the views expressed and continue to work with

our state-wide partner organisations to complete the review. Final findings and recommendations will be

presented to the Minister for Sustainability, Environment and Conservation for consideration by June 2017.

Overview of draft findings and recommendations

The initial phase of this review has highlighted a number of draft findings and recommendations. These are

presented below. Further information is provided in the following sections.

Under the Natural Resources Management Act 2004 (the Act) the State NRM Plan is an important

guiding and coordinating document that links a wide range of specific policies, strategies and

programs that help to achieve more sustainable management of natural resources. It is not the primary

vehicle for driving action and investment, which occurs through regional planning and action, and a

range of state programs, policies and regulatory systems.

Regional NRM plans are developed with regional communities and therefore highlight regional issues

and actions. There is an opportunity for the State NRM Plan to build on these regional plans and

provide an umbrella layer that pulls together the high level themes from the regional plans and

showcases the way each regional plan delivers on these themes.

Overall the State NRM Plan 2012-17 was a significant evolution in state-wide NRM planning. It was

shorter, simpler and more strategic in focus than the previous State NRM Plan 2006. It also refined and

streamlined the monitoring and evaluation framework to provide for better coordinated data collection

and reporting.

The current State NRM Plan guided action by the NRM Council and some other organisations, but its

full potential has not been realised, and it is no longer widely influential.

Much of the content remains broadly sound, but the Plan should be refreshed to better meet the needs

of its primary users: regional NRM boards, state government agencies, local government, Traditional

Owners and peak bodies. While the Plan should primarily aim to guide these organisations, it should be

written in a way that is accessible to a broad audience.

Traditional Owners are both an important audience for the Plan and should be involved in developing

and implementing the State NRM Plan. To support Traditional Owners taking a leading role in NRM,

Aboriginal representative organisations must be involved in developing and implementing the Plan.

A future State NRM Plan can support South Australia’s renewed focus on Aboriginal economic

development and employment.

The State NRM Plan should clearly demonstrate the value of NRM for the public.

It should aim to excite and empower stakeholders and inspire action.

It should remain a strategic enabling/guiding document that sets the shared vision, goals and

principles for the integrated management of natural resources.

In particular, we seek input from organisations and individuals interested in natural resources

management on:

1. Do you think that the State NRM Plan should be updated?

2. What natural resources management topics should a future State NRM Plan address?

3. Should a future State NRM Plan include state-wide policies on particular subject matters? If so, what

types of state-wide policies would be most useful?

4. What format (e.g. single or multiple volumes) would be most useful for a future State NRM Plan?


A State NRM Plan should clearly explain the state-level priorities for managing natural resources,

including any broad priorities to improve the state-level management systems, processes and

relationships for achieving more sustainable natural resources outcomes.

An amended State NRM Plan should be jointly developed by key organisations and partners across the

NRM sector to ensure the Plan accurately reflects contemporary thinking and shared priorities, and

remains relevant to the sector’s evolving needs.

To ensure ongoing ownership and effectiveness of the State NRM Plan, the Minister may wish to

consider tasking a suitable lead to continue working with partners on coordinating effort across the

sector to deliver the Plan.

The monitoring and evaluation framework should be further streamlined to reflect the learnings from

the March 2015 review of the NRM Reporting Framework. The forthcoming Environmental Reporting

Strategy being prepared by DEWNR (with input from key agencies), due during 2017, will provide the

foundation for greater alignment of environmental reporting relevant to project, regional, state

programs and State of the Environment Reporting.

Consideration should be given as to whether the next version of the State NRM Plan should remain a

single document, or be separated into volumes to enable easier updating and targeting of content.

o Separate volumes could include a ten-year strategic policy statement, a three-year business or

investment priority statement, a five-year monitoring and evaluation framework, and specific state-

wide policies or guidelines that could be developed or updated as needed (such as for state-wide

water policy, or biosecurity).

The Review process

The State Natural Resources Management Plan 2012-17 ‘Our Place Our Future’ (State NRM Plan) was

adopted in June 2012. Under the Natural Resources Management Act 2004 (the Act), the Minister must

review the State NRM Plan at least once every five years, in this case by June 2017. DEWNR is supporting

the Minister to carry out the Review.

This Review aims to examine the effectiveness of the State NRM Plan in “setting out principles and policies

for achieving the objects of the NRM Act throughout the State” (s. 74(2)) of the Act. The results of the

Review will inform any potential future amendment of the State NRM Plan. If the Plan is not amended,

under the Act the current State NRM Plan continues to operate.

The draft findings and recommendations presented here are informed by interviews with a range of

partners and key stakeholders within the NRM sector. These include regional NRM boards, Primary

Producers SA (PPSA), Conservation Council of SA (CCSA), Local Government Association of SA (LGA),

Landcare Association of SA (LASSA), Department of Environment Water and Natural Resources (DEWNR),

Department of Primary Industries and Regions SA (PIRSA), Environment Protection Authority (EPA),

Department of State Development (DSD), the Department of Planning, Transport and Infrastructure (DPTI))

and several former members of the NRM Council. Discussions with these stakeholders focused on the

following questions:

What is the purpose of the State NRM Plan?

Who is it for?

How does it relate to regional NRM plans and other parts of the NRM system?

How well does the current State NRM Plan achieve its purpose?

How should the State NRM Plan change in the future, if at all?

In addition, the draft findings and recommendations are informed by:

a 2014 interim review of the State NRM Plan by the NRM Council

a 2015 review of the NRM Reporting Framework


a 2016 workshop with Aboriginal people involved in natural resources management to discuss state-

wide NRM planning and future engagement processes

a range of data and information generated through other processes, such as consultation on regional

planning, surveys of stakeholders and communities about NRM

review of other relevant NRM literature

These draft findings and recommendations have been prepared to inform broad consultation with

stakeholders and the public.

Summary of the State NRM Plan 2012-17

The current State NRM Plan is a high level strategic document designed to set the direction for South

Australia in its management of natural resources.

The Act defines a number of key elements that are required to be addressed by the State NRM Plan. These

are:

set out the principles and polices for achieving the objects of the Act

assess the state and condition of the natural resources of the state

identify existing and future risks to the natural resources of the state

provide for monitoring and evaluating the state and condition of natural resources

identify goals, set priorities and identify strategies to manage the natural resources of the state

set out or adopt policies to protect the environment and the interests of the community through the

operation of the Act

promote the integrated management of natural resources

take into account the provisions of the Planning Strategy, and identify any desirable changes to the

Planning Strategy

Under the Act, regional NRM plans should be consistent with the State NRM Plan.

The current plan was prepared by the NRM Council during 2010 – 2011. The Plan was developed with input

from discussion papers and workshops with a range of key stakeholders, and a three-month public

consultation process.

At the highest level the Plan sets the direction through a vision, three goals and 13 guiding targets. This is

underpinned by the management system which describes the groups and individuals that help to deliver on

the State NRM Plan (Figure 1).


Figure 1. Summary of key elements of the State NRM Plan 2012-17


Draft findings and recommendations

Role of the Plan The State NRM Plan is an important guiding and coordinating document that links a wide range of specific

policies, strategies and programs that help to achieve more sustainable management of natural resources.

It is not the primary vehicle for driving action and investment, which occurs through regional planning and

action, and a range of state programs, policies

and regulatory systems.

Overall the State NRM Plan 2012-17 was a

significant evolution in state-wide NRM

planning. It was shorter, simpler and more

strategic in focus than the first generation State

NRM Plan 2006. It also refined and streamlined

the monitoring and evaluation framework to

provide for better coordinated data collection

and reporting.

It reflected the latest principles and approaches

to NRM planning current at the time, many of

which remain relevant.

The move to a more strategic, guiding document

is broadly supported by stakeholders in the

initial phase of the review.

The State NRM Plan 2012-17 was the principal

strategic planning tool of the NRM Council and

was used to guide its operations until the

Council was abolished in 2015, as part of a state-

wide review and streamlining of government

boards and committees.

The State NRM Plan 2012-17 is also used by a range of other organisations. In particular, it continues to be

referenced by regional NRM boards and Non-Government Organisations (NGOs) in funding applications to

ensure funding bodies have confidence that specific project proposals align with state-level strategic

directions. The Landcare Association of SA explicitly used priorities from the State NRM Plan as the basis for

its South Australian Community Landcare Plan 2014-2019.

The State NRM Plan 2012-17 does not direct on-ground action. It was intended as a guiding document,

with action delivered through regional and agency plans, in order to allow for regional differences and

encourage innovation that is best suited to each community’s circumstances. Given this, the State NRM

Plan alone does not have a direct influence on the state and condition of natural resources.

As a guiding strategy rather than an action plan, the State NRM Plan 2012-17 does not include significant

information about funding. Some stakeholders have indicated that the overall approach to funding NRM is

an important element in achieving the State NRM Plan’s overall goals, and the Plan should provide more

information around the range of co-investments made by Australian, state, and local governments,

landholders, NGOs and the broader community, including the regional NRM levies. Some also considered

that improving the quantum of investment in NRM from a range of sources, and improving ability to target

investment to the greatest needs across the state, should be important objectives in the future.

Audience The Plan has multiple audiences. Participants in the review generally felt that the Plan should be designed

primarily for use by state and Commonwealth government agencies, peak bodies and regional NRM

boards; those organisations with a high level of involvement in natural resources management across the

state. The Plan should provide high level strategic guidance to these groups to ensure that at a state-level

The importance of a state-wide plan to guide coordinated

action for natural resources management was highlighted

by the Victorian Auditor General in its 2014 review of

catchment management authorities in Victoria. It found

that the absence of a state-wide strategy in Victoria made

it difficult to assess the overall effectiveness of catchment

management in Victoria. The Victorian Government has

since introduced a high level state-wide strategic plan, Our

Catchments Our Communities, that has many similar

elements to the SA State NRM Plan 2012-17.

“…the absence of an overarching strategy means there is

no long-term state-wide vision, goals or priorities for

integrated catchment management. Without these DEPI

[the Victorian Department of Environment and Primary

Industries] cannot clearly demonstrate that state

investment in integrated catchment management is being

effectively targeted or achieving intended outcomes across

all areas of natural resource management. Additionally,

DEPI has acknowledged this gap may also limit

opportunities to secure future federal investment for

natural resource management.” [p15]


there are coordinated and coherent outcomes across the NRM sector. Nevertheless, the writing style, and

overall style of the document should be accessible to the wider community.

Participants considered the State NRM Plan needs to explain and promote the rationale for ongoing effort

and investment in the integrated management of natural resources through a compelling explanation of

the value that NRM provides for the public. A consistent message on the benefits of the NRM system as a

whole could also be useful for primary users of the document in their communications with state and

Commonwealth government Ministers, funding organisations, and the general public. This could assist in

providing confidence to investors (for example the Australian Government) that there is sound governance

surrounding investment in natural resources management in South Australia, and that priorities have been

identified in a rigorous manner, underpinned by sound evidence. It would also help to build support in the

wider community for effort and investment in NRM to ensure current and future health and prosperity.

Overall the tone and style of the Plan is not seen as compelling. Stakeholders seek a more contemporary

document that excites, empowers and encourages action, beyond the traditional NRM sphere; and that

better reflects their current priorities and respects the critical role that land managers (private sector,

primary producers, Traditional Owners, community, local government and state government) already play in

managing natural resources. The tone and focus of the SA NRM Investment Strategy 2016 is seen as a good

model.

Key elements of the Plan In general, the content of the State NRM Plan remains sound and stakeholders consider that it broadly

captures the intent and direction of NRM in South Australia. In particular, the Vision and 3 Goals of the

State NRM Plan remain relevant and continue to be widely supported by stakeholders.

Significant advances have been made against most of the Plan’s ten priorities to strengthen the

management system. For instance, the publication of the ‘State and Condition Reporting Framework

document in 2012 (https://data.environment.sa.gov.au/NRM-Report-

Cards/Documents/91913%20NRM%20Reporting%20Framework%202012%20Final%20Draft%20v7.pdf) was

a direct action from Priority 7 ‘develop an integrated NRM Reporting Framework to improve understanding

of natural resource condition.

Aboriginal people are closely involved in managing national parks in many areas, including through park

co-management boards, and direct investment into natural resources management resulted in a 20%

increase in the number of Aboriginal people employed in the north-west of South Australia between 2012

and 2015 (Priority 2). Although Aboriginal engagement has expanded during the life of the Plan, Traditional

Owners of Country seek a shift from supporting participation to building capacity to take a leading role in

NRM planning and implementation. This shift aligns with state and Commonwealth strategic directions

relating to increased Aboriginal business procurement and employment outcomes.

Partnerships have been strengthened between NRM boards and primary producers, supported by the

Agriculture and NRM Working Together Action Plan 2014-2017 (Priority 4).

Despite these successes, there is still a need to progress many of the priorities in the State NRM Plan and to

continuously improve and strengthen the management system. Any amendment to the Plan should

reassess what the priorities are at that time.

The State and Condition Reporting Framework and the subsequent publication of the 56 state-wide and

242 regional snap shots is widely seen as a significant strength of the State NRM Plan. This was the first

time South Australia had published a comprehensive set of reports in an easy to understand and open

format. This work will now provide the basis for regular state-scale trend and condition report cards, and

set the foundation to pursue greater alignment of reporting relevant to projects, regional and state

programs and inform State of the Environment Reporting and Environmental Accounting. The latest trend

and condition report cards are due to be published in the first half of 2017.

Focus question: Do you think that the State NRM Plan should be updated?


https://data.environment.sa.gov.au/NRM-Report-Cards/Documents/91913%20NRM%20Reporting%20Framework%202012%20Final%20Draft%20v7.pdf

https://data.environment.sa.gov.au/NRM-Report-Cards/Documents/91913%20NRM%20Reporting%20Framework%202012%20Final%20Draft%20v7.pdf

While the content was generally considered to be sound, the multiple layers of the State NRM Plan were

seen by many as too complex; with a vision, 3 goals, 13 guiding targets, 56 representative measures, 10

priorities to strengthen the management system, and 7 principles as part of a new NRM Standard.

While there are targets that relate to most areas of NRM, including water, soils, pest plants and animals,

some stakeholders indicated that the Plan overall is too generic and management system-oriented. They

consider it does not provide enough connection with the issues that many natural resources managers and

landholders relate to.

Ownership of the Plan While respondents generally consider that many parts of the State NRM Plan are sound, they consider that

it has not fully realised its potential. One key reason was that despite significant consultation, some

organisations were not involved in the process at an early stage, and the Plan was not widely ‘owned’ by

stakeholders across the NRM sector; it was largely seen as a document by, and for, the NRM Council; and to

a lesser extent, for DEWNR.

It was widely felt that if the State NRM Plan is amended, the process for that amendment was equally, if not

more, important than the final product produced. In order for the Plan to be “owned” by the broader NRM

sector, the process needs to allow for joint development of the Plan by the key state-wide partners involved

in NRM (e.g. state government agencies, Conservation Council SA, Primary Producers SA, Aboriginal

representative organisations, Local Government Association, Landcare Association of SA, and regional NRM

boards). The value from jointly developing the SA NRM Investment Strategy 2016 demonstrates the

strength and success of this approach.

Therefore, any amendment to the Plan should be jointly developed by key organisations across the NRM

sector to ensure the Plan accurately reflects contemporary thinking and shared priorities, and remains

relevant to the sector’s evolving needs.

To ensure ongoing ownership and effectiveness of the State NRM Plan, the Minister may wish to consider

tasking a suitable lead to continue working with partners on coordinating effort across the sector to deliver

the Plan.

Traditional Owners should also be closely involved in developing and implementing the Plan.

State and regional planning Regional NRM plans are developed through close involvement with regional communities, providing a focal

point for community leadership in managing natural resources. A key role of the State NRM Plan is to

connect these regional planning processes into state-wide policymaking and help highlight the value of

regional community engagement. The State NRM Plan could play this role best if it is built up from these

regional plans, providing an umbrella layer that pulls together the high level themes from the regional

plans and showcases the way each regional plan delivers on these themes.

The review has identified a gap in the current State NRM Plan in that it does not clearly articulate

approaches to managing issues across regional boundaries, and across private and public land. Further,

these approaches are even less clear in engaging Traditional Owners at the scale of their respective

Countries that cut across both regional NRM but also state boundaries. The practical connection between

state-wide policies and programs and regional level planning and action is not as clear as it could be in

guiding coordinated action.

It was generally felt that there is an important role for the State NRM Plan to clearly explain the direction at

a state-level and that it should reinforce state-wide messages and commitments. This should include

identifying and supporting those issues which are beyond any single region’s ability to manage. It was felt

that the State NRM Plan could provide a conduit for state government agencies (e.g. DEWNR, PIRSA, DSD,

DPTI, EPA) looking to incorporate their NRM related issues into the NRM planning system – from the State

NRM Plan through to regional NRM plans. There is significant opportunity for an amended State NRM Plan

to provide a link between state-wide policies and regional level planning and action.


There are a range of state-level policies that cover specific aspects of natural resources management (e.g.

No Species Loss/Nature of SA, Climate Strategy, and Water for Good). Natural resources management is

generally seen as integrating a range of these policies, therefore the State NRM Plan potentially has a role

in bringing together these state policies, and providing a link between the policies and regional planning

and delivery.

The State NRM Plan should also be designed to influence other state policies and plans through clear

objectives and practical opportunities to shape shared outcomes. For instance, achievement of more

sustainable natural resources management outcomes should contribute to, and help to shape broader

policies to achieve strong economic development and resilience to climate change.

It was generally felt that the State NRM Plan should provide a consistent, but not constrained, framework

for regional NRM planning. This could include providing high level principles for underpinning concepts,

such as:

landscape and systems approaches to planning

use of resilience concepts

incorporation of climate change adaptation

principles for community engagement

principles for investment decisions

a risk based approach to planning

health and wellbeing

There are fundamental challenges inherent in the timing of preparation of the State NRM Plan and the

eight regional NRM plans. The staggered nature of regional NRM planning, with several under review or

being updated at any given time, inevitably means that any time a State NRM Plan is adopted will be too

late to influence regional plans that have already been completed.

Some stakeholders have indicated a desire for greater consistency across the State NRM Plan and the eight

regional plans to improve accountability and help state-wide agencies and non-government bodies to

engage with regional processes. This is not always straight forward to achieve as regional plans are

prepared by boards in consultation with their local communities, reflecting local priorities, and are

presented in ways that are meaningful to local communities.

In order to allow for a true adaptive planning process across state and regional planning, consideration

needs to be given to the format and process for the State NRM Plan’s development. A high level, visionary

plan, developed with regional involvement, should learn from the lessons of regional planning and planning

in other jurisdictions, guide future regional plans, and allow for the detail and up to date priorities to be

defined at regional/ subregional levels, and through other stakeholders action plans.

In addition to regional plans, the State NRM Plan can provide high level guidance to other action and

business plans for organisations within the NRM sector. This could include agency business/corporate

plans and NGO action plans.

The Planning, Development and Infrastructure Act 2016 (PDI Act) brings changes to land use planning and

development approvals. The Department of Planning, Transport and Infrastructure is in the process of

developing the tools and systems that will support the implementation of the new Act. For instance,

changes to regional development planning instruments and processes may provide opportunities for

greater alignment between regional plans under the NRM and PDI Acts. There is an opportunity for a range

of NRM stakeholders to work with DPTI now to better align the NRM planning and land use planning

systems, to achieve a range of natural resources outcomes. This work should be progressed over the next

12 to 18 months, whether or not the State NRM Plan is amended.

South Australian Government focus relating to Aboriginal governance has shifted significantly towards

establishment of Aboriginal regional authorities and commencement of Treaty negotiations. Caring for


Country (lands and waters) and Aboriginal engagement in NRM are common themes re-iterated by

Traditional Owners. An amended State NRM Plan would provide a valuable opportunity to meaningfully

contribute to these processes.

State NRM Plan content The review has highlighted a number of content areas that could be improved in an amended State NRM

Plan. These include:

Providing better links to key economic drivers and the state economic priorities. Improved natural

resources management is critical for some sectors of the economy (e.g. primary production). Good

NRM is good for business sustainability and building social and economic resilience.

Acknowledging and respecting the fundamental role that land managers (such as primary producers,

local government and Traditional Owners) play in managing the natural resources of the state to

support prosperous businesses, promote community wellbeing and protect valuable assets.

Incorporate the role of consumer knowledge and behaviour in influencing the use and management of

natural resources.

Better reflecting the changing narrative on biodiversity – i.e. moving from the No Species Loss Strategy

to the Nature of SA (with a focus on how we help South Australia’s natural environment in the face of

changing climate and ongoing pressures such as weeds and habitat loss).

Emphasising the importance of adapting to climate change across the state, and particularly in the

NRM sector, as well as highlighting the potential opportunities in mitigating climate change for the

NRM sector (e.g. carbon sequestration through NRM).

Better including water resources management and the importance of water for natural resources,

communities, and economic development.

Emphasising the role of the NRM sector in the state and national biosecurity system, including the

Intergovernmental Agreement on Biosecurity, Australian Weeds Strategy and Australian Pest Animal

Strategy.

Incorporate a framework for Aboriginal engagement and involvement in natural resources

management across the state, and making reference to the importance of indigenous biocultural

knowledge. The Plan should recognise and enable the valuable co-benefits from Aboriginal

involvement and leadership in NRM including more sustainable employment and business

opportunities and associated health and wellbeing outcomes. A respectful partnership also enables the

application of Aboriginal knowledge and innovations that can advance our understanding of

sustainable livelihoods and NRM.

New approaches to NRM planning that are being used in regional planning means the State NRM Plan

is now somewhat dated. It should be updated to reflect more contemporary planning approaches (such

as resilience and systems based planning) and changing priorities (such as a stronger focus on

sustainable production and climate change), and contribution of NRM to community well-being

outcomes.

Many respondents interviewed during the initial consultation on the State NRM Plan review indicated that

the SA NRM Investment Strategy 2016 provides a good model for expressing contemporary approaches to

some of these issues, and provides a good starting point for a future State NRM Plan.

Focus question: What natural resources management topics should a future

State NRM Plan address?


There remain questions on whether policies for specific issues should be contained within the State NRM

Plan or should sit elsewhere. For instance, there are a number of proposals to streamline water planning

through state-wide policies that could apply in the absence of a specific water allocation plan. Such policies

could potentially be embedded within the State NRM Plan, or could be better housed in other documents,

which could be referenced within the State NRM Plan.

Draft Recommendations

An amended State NRM Plan should:

Be refreshed to better meet the needs of its primary users: regional NRM boards, state government

agencies, local government and peak bodies. While the Plan should primarily aim to guide these

organisations, it should be written in a way that is accessible to a broad audience and clearly

demonstrate the value of NRM for the public.

Aim to excite and empower stakeholders and inspire action.

Remain a strategic enabling/guiding document that sets the shared vision, goals, principles and

priorities that guide action by the entire NRM sector in order to achieve coordinated, coherent

outcomes at the state-wide scale.

Describe and promote South Australia’s integrated approach to NRM, in order to demonstrate the

effectiveness of the governance and delivery mechanisms in place to achieve improved natural

resource outcomes, including:

o providing the linking framework for other state policies and plans, including supporting and

influencing broader government objectives such as achieving sustainable economic development

and resilience to climate change

o explaining how regional planning and action delivers on ground, and how that contributes to

natural resources outcomes across the state.

Provide a clear rationale for ongoing effort and investment in NRM at all scales; by governments,

industry, landowners, the not-for-profit sector and individuals.

Provide prominence to strategies that seek to build the capacity of Aboriginal people and organisations

to take a leading role in NRM and that creates opportunities for Aboriginal business and employment.

Clearly explain the state-level priorities for managing natural resources, including any broad priorities

to improve the state-level systems, processes and relationships for managing natural resources.

Provide a linking and coordinating framework for regional plans, primarily built up from regional plans,

that guides future regional planning and identifies those issues and priorities that are more

appropriately addressed at a state-level. There is an opportunity for the State NRM Plan to build on

these regional plans and provide an umbrella layer that pulls together the high level themes from the

regional plans and showcases the way each regional plan delivers on these themes.

Aim to improve our collective ability to target investment to the greatest needs across the state.

Be jointly developed by key organisations, partners and Traditional Owners across the NRM sector to

ensure the plan accurately reflects contemporary thinking and shared priorities, and remains relevant to

the sector’s evolving needs.

Focus question: Should a future State NRM Plan include state-wide policies on

particular subject matters? If so, what types of state-wide policies would be

most useful?


Aim to ensure ongoing ownership and effectiveness of the State NRM Plan. The Minister may wish to

consider tasking a suitable lead to continue working with partners on coordinating effort across the

sector to deliver the Plan.

Further streamline the monitoring and evaluation framework to reflect the learnings from the March

2015 review of the NRM Reporting Framework. The forthcoming Environmental Reporting Strategy

being prepared by DEWNR, due in June 2017, will provide the foundation for greater alignment of

environmental reporting relevant to project, regional, state and program reporting and informing State

of the Environment Reporting.

Consider whether the next version of the State NRM Plan should remain a single document, or be

separated into volumes to enable easier updating and targeting of content. As an example, the State

NRM Plan could comprise several volumes, which could be updated at different times and would have

specific and defined purposes:

o A ten to twenty-year strategic policy statement that sets out the vision, goals and principles that

are unlikely to change significantly over time – this would form a high level direction setting

document that could remain in place without change, providing long term direction consistent

with the long term needs of natural resources.

o A one to three-year business or investment priority statement (along the lines of the current SA

NRM Investment Strategy 2016) setting out the current shared priorities for action by partners in

the NRM sector. This could be updated frequently to reflect changing priorities and changing

investment needs to address the long term natural resources outcomes sought.

o A five-year monitoring, evaluation and reporting framework – to guide alignment and efficiency of

reporting, ensuring that information can be collected once and used for multiple reporting

purposes.

o Specific state-wide policies or guidelines that could be developed or updated as needed (such as

for state-wide water policy or biosecurity).

NRM stakeholders should continue working with DPTI as a priority to improve alignment of NRM and

PDI Act planning tools, even before the State NRM Plan is amended.

Focus question: What format (e.g. single or multiple volume) would be most

useful for a future State NRM Plan?


Attachment A: Review of the State NRM Plan – Phase 1 – Preliminary engagement with key partners

NRM Investment Strategy Workshop – 29 August 2016

A workshop to develop the SA NRM Investment Strategy 2016 also considered broader aspects of strategic

NRM planning, including the role, strengths and weaknesses of the State NRM Plan. This workshop

included representatives from the Council of NRM Presiding Members, PPSA, CCSA, Landcare Association

of SA, LGA, DEWNR, and PIRSA.

Aboriginal Engagement Workshop – 28 September 2016

A range of Aboriginal people involved in natural resources management were invited to a workshop in

2016 to discuss strategic NRM planning, particularly to inform the development of the SA NRM Investment

Strategy 2016 and the review of the State NRM Plan. Invitees included Aboriginal members of regional

NRM boards, park co-management boards, Aboriginal regional authorities, Aboriginal Lands Trust, and SA

Native Title Advisory Service.


Interviews/ Meetings – December 2016 – March 2017

Structured interviews were held with the following organisation during the phase 1 preliminary

engagement

Organisation

Council of NRM Presiding Members

Kangaroo Island NRM Board

South East NRM Board

SA Arid Lands NRM Board

Adelaide and Mount Lofty Ranges NRM Board

Natural Resources Adelaide and Mount Lofty Ranges

Natural Resources Eyre Peninsula

Natural Resources South East

Natural Resources Kangaroo Island

Natural Resources Northern and Yorke

Natural Resources Alinytjara Wilurara

Natural Resources South Australian Arid Lands

Natural Resources South Australian Murray Darling Basin

Department of Environment, Water and Natural Resources

Primary Producers SA

Conservation Council SA

Trees for Life

Landcare Association SA


Department of Primary Industries and Regions South Australia

Environment Protection Agency

Department of Planning, Transport and Infrastructure

Department of State Development

South Australian Chamber of Mines and Energy

Australian Government – Department of Agriculture & Water

Australian Government – Department of Environment & Energy



7.6 Vegetation Management Around Powerlines – Regulatory Amendments


From: Bethany Loates, Senior Policy Officer




ECM: 650383

Recommendation

That the LGA Board:


2. delegates final endorsement of the LGA submission on vegetationmanagement around powerlines regulatory amendment to the LGAExecutive Committee meeting on 15 June 2017.

Discussion

The Electricity (Principles of Vegetation Clearance) Regulations 2010 (the Regulations) set out the duty of South Australian councils to take reasonable steps to keep vegetation clear of powerlines.

The Regulations define areas as bushfire and non-bushfire risk areas and determine the specific clearances that must be maintained around powerlines. They also include requirements for planting and nurturing vegetation near powerlines, the principles for low risk powerlines, and determine the relationship between councils and SA Power Networks (as the electricity entity).

SA Power Networks engagement with consumers and local government over recent years has highlighted the desire for regulatory change in the management of vegetation around powerlines. In January 2017, SA Power Networks lodged a submission with the Office of the Technical Regulator (OTR) requesting a number of amendments to the existing Regulations. SA Power Networks developed amendments in consultation with their Arborist Reference Group and the LGA Vegetation Management Working Group (comprising eight regional and metropolitan councils) and were further workshopped at two Local Government Forums in March 2016.



The LGA sought council feedback via LGA Circular 15.1 on proposed amendments that SA Power Networks has lodged with the OTR. Amendments cover:

1. sapling removal; to permit the removal of naturally sown saplings that have thepotential to grown into the clearance zone;

2. boundary reviews - bushfire/non-bushfire risk areas; to review the criteria fordetermining the bushfire and non-bushfire risk area boundaries, which may result inreclassification of certain built up areas as non-bushfire risk areas; and

3. risk based approach to vegetation clearance; to expand the definition of low riskpowerlines to other non-bushfire risk areas/ built up areas (ie. major regional centresand larger rural townships) where specified criteria are met.

Councils were invited to provide input to the LGA submission by 5 May 2017. However, a number of councils have now sought extensions to this timeframe. To enable more councils to have their say, these extensions have been granted.

To date, feedback has been received from 12 councils. Initial council feedback has largely been supportive of the proposed amendments; however a few councils have indicated that careful consideration must be given in enabling wide spread sapling removal.

To meet an extended consultation period, it is recommended that the LGA Board agrees to delegate the final endorsement of the LGA submission to the OTR to the LGA Executive Committee meeting on 15 June 2017.





7.7 LG Defined Benefit Scheme - Salarylink Superannuation Fund (SSF)

Reports for DiscussionFrom: Grant Waldron, Acting Director Member Services

Key Initiative: K.I 3 Best practice and continuous improvement

Strategy: 3C Improve LGA governance and operations with a focus on people, finances and our members


ECM: 649560 Attachment/s: Nil

Recommendation That theLGA Board:


2. notes that the Council superannuation contribution rates to the StatewideSuper Fund (SSF) will be reviewed quarterly at the end of March, July,September and December each year.

Executive Summary The LGA is the responsible entity in respect of approving the Council’s superannuation contribution rates (presently annually 6.3% of Salarylink members’ salaries and a separate3% contribution of salaries to a separate accumulation account). Legislation requires that the trustees of Statewide Super Fund (SSF) must ensure there are sufficient assets to cover all the benefits, if members all ceased employment at a particular point of time. That is there must be 100% coverage at this time.

As at 30 September 2016 the coverage was 107.5% and as at 31 December 2016 the coverage level was 108.9%.

At this time, no action is proposed to be taken to adjust the present Council contributions rates however, in terms of the following information, a cycle of review will now be implemented on a quarterly basis as at the end of March, June, September and December each year.

Background The Local Government Defined Benefit Scheme - Salarylink Superannuation Fund (SSF) is administered by Statewide Super Fund (SSF) however the LGA is the responsible entity in respect of approving contribution rates required by councils.

Salarylink was closed to new members from November 2009. As at 31 December 2016 it had 3,140 participating members along with a further 741 members who have retained their benefits in the fund when they ceased employment.

Legislation requires the trustees of SSF to ensure there are sufficient assets to cover all the benefits if members all ceased employment at a particular point of time e.g. 31



December 2016 or 31 March 2017. That is they must have 100% coverage at this time. (This is referred to as ‘coverage’ in this paper.)

As at 30 September 2016, the coverage was 107.5%.

As at 31 December 2016, the coverage was 108.9%, this was an increase in‘coverage’ of 1.4% from September 2016.

Should Salarylink fall below 100% coverage the trustees must implement a plan tocorrect this financial position within a maximum period of three years.

1. Presently each council contributes annually 6.3% of Salarylink members’salaries and a separate 3% contribution of salaries to a separateaccumulation account. This makes a total of 9.3%.

2. Other means and structures are in place to ensure Salarylink meets theSuperannuation Guarantee legislation.

Discussion

Present Investment Structure

80% Total Growth Assets

20% Total Defensive Assets

Investment Returns

Based on actuary advice, the long term expected return is CPI plus 3.5% over rolling 10 year periods, however with the likelihood of a negative return approximately 4 years in every 20.

In 2009 Salarylink had insufficient assets to provide 100% coverage and the trustees at the time increased the contribution rates from councils from 6% to 6.3% to restore the financial position of Salarylink over time.

While the current financial position of Salarylink is satisfactory at 108.9%, valuations in a number of investment markets provide a greater likelihood of lower future investment returns across the board than has historically been the case.

As such, it is prudent to regularly review the investment structure to reduce the impact of any variable investment returns, on Salarylink’s financial position in the future.

Rectification of Coverage Levels Rectification can be achieved in two ways:

1. increasing the councils’ contribution rate; however where the Trustees determine anincrease in the level of contribution, the rate that is required, can only be determinedat the time of the event; and

2. managing the risk of fluctuating returns by adjusting the investment structure.

Historical Vested Benefit Coverage The vested benefit coverage has fluctuated from circa 105% in 2002 to circa 118% in

2008. This coverage level dipped to circa 96% to 100% between 31 December 2011 and 30

December 2012. Between March 2013 and March 2015 it bounced from circa 101% to 110%. From March 2015 to September 2016 it moved between 110% to 107.5%.



The point being that historically the level of coverage has been variable.

Information on Future Returns The Fund’s Actuary has advised that they have an expectation for lower returns in the future.

The last actuarial review at 30 June 2014 assumed a future rate of return of 6.5% with future salary increase of 4.0%; resulting in a predicted margin of 2.5%. Recently the actuary advised that their predicted future returns are expected to reduce from 6.5% per annum to 5.75% per annum. They also expect going forward a higher level of fluctuation in returns. Such predicted outcomes would place upward pressure on the contribution rate of the councils to Salarylink.

The expected salary measures will be below the 4% assumed at the last actuarial review. The next actuarial review will be completed at 30 June 2017 with the results expected to be available by November this year.

Comparisons - Investment return v Contributions Each 1.0% positive investment return increases the fund assets by $6.58million.

To generate the same value of increase in Salarylink’s assets, would require an increased contribution of nearly 3% by councils.

This clearly demonstrates the management of investment performance and managing asset values has much greater impact on the asset value than increasing the council’s contributions.

Options Available to the LGA to Ensure Sufficient ‘Coverage’ is in Place There are a number of options available to the LGA for dealing with the legislative requirements and the possibility of greater volatility in returns in the future. These are outlined below:

a) Maintain the current investment structure and contribution rate - accept thatthere is a possibility of a fall in investment returns that leads to a contribution rateincrease, which may be significant, for a period of time to rectify any unsatisfactoryfinancial position. This may occur with relatively short notice to ensure that legislativeobligations are met.

b) Maintain the current investment structure but slightly increase the contributionrate - It may be appropriate to maintain the current investment structure but increasethe level of council contribution rate slightly to generate an additional financialposition buffer. This may reduce the severity or duration of any increasedcontribution in the event investment returns decrease sharply.

c) Reduce risk in the investments - Under this option LGA would direct that areduction to the amount invested in growth assets (shares, property andinfrastructure) and increase exposure to lower risk investments (cash, fixed interestand defensive alternatives). This would lessen the impact of a decrease ininvestment returns, but would also likely result in the Actuary recommending anincrease in the level of council contribution rate.

The actuary has advised that if the assets were moved from its existing structure(80% growth assets and 20% defensive assets) to a more conservative portfolio (50%growth assets and 50% defensive assets) the level of council contribution could beexpected to increase by 3-4% of members' salaries. The potential attraction tocouncils would be that this revised strategy potentially reduces the possibility of a



significant increase in employer contributions over a short period should Salarylink not have sufficient coverage if there was a shock to investment markets and asset values.

d) Implement an investment strategy to attempt to manage significant negativereturns

This option would result in Statewide implementing some investment arrangements toattempt to reduce the impact of negative return from equity investments. Thisstrategy works to cover a prolonged period of negative returns but would not solve asignificant downfall in equity markets ie such as October 87 or the technology crashin early 2000.

This option is likely to result in a slightly lower return on the assets thus potentiallyincreasing the level of council contribution in the longer term. It would however beexpected to reduce the likelihood of a significant short term contribution rate increasedue to Salarylink not having sufficient assets to cover vested benefits.The expectedoutcome of this strategy would be to lower the range of return outcomes; lessdownside but also less upside meaning less volatility in returns. While the averageannual return may be expected to be slightly lower, the lower volatility can potentiallylead to better long term returns by lessening the downside impact on Salarylinkassets. This simply reflects the effect of compound interest and the benefits oflimiting negative returns (eg a 50% decline in valuations requires a 100% positivereturn to recover the losses).

Future Actuarial Review A further actuarial review is scheduled to take place at 30 June 2017. A detailed report outlining the outcome of this review is expected late November 2017.

Recommendation Given the legislation and the perception that investment market outcomes will be subject to volatility over time and the potential impact on the council contribution rate, it' s appropriate and prudent for the LGA Secretariat to regularly review ‘coverage levels’ and as necessarydetermine the most appropriate course of action with respect to these investments.

Coverage as at 31 December 2016:

Vested Benefits: $605.561m

Net Assets: $659.349m

Vested Benefit % 108.9% (being an increase from 107% as at 30 September 2016).

On this basis it is proposed to pursue Option a) but undertake a review on a quarterly basis being end of March, June, September and December each year. A further detailed analysis is to be undertaken upon receipt of the June 2017 actuarial review. All dates have been diarised for follow up and provision of updated information to LGA Secretariat and the Board if required.



7.8 Local Government Research & Development Scheme


From: Lisa Teburea, Executive Director Public Affairs


Strategy: 3B Benchmark, innovate and research


ECM: 649809 Attachments: 649808, 650471

Recommendation

That the LGA Board:


2. approves the recommendations of the Local Government Research &Development Scheme Advisory Committee; being

a. overall expenditure in 2017-18 of $2.917 million, which includes:

i. funding of 13 LGA-Secretariat initiated projects to a total value of$907,000 as described in Attachment 1; and

ii. administration costs of $151,000 in 2017-18 which includes a one-off allocation of $14,000 to be reserved for publicising, tocouncils, the library of R&D-funded projects;

3. notes the Committee’s recommendation that an application be encouragedlater this year, for research on the National Disability Insurance Scheme; and

4. approves a continuation in 2017-18 of the project ‘Local GovernmentAwareness Raising’ with a budget of $150,000.

Discussion

Recommendations of the Local Government Research & Development Scheme Advisory Committee

The LGR&DS Advisory Committee (“the Committee”) met on 7 April 2017 to consider a draft budget for the Scheme in 2017-18 and multiple applications for funding from the LGA Secretariat.

The Committee was presented with a financial analysis of the Scheme as at 28 February 2017, including a draft budget for 2017-18. An updated version of this financial analysis, reflecting the recommendations of the Advisory Committee, has been provided as Attachment 2.



The proposed R&D Scheme budget for 2017-18 recommended by the Advisory Committee anticipates an opening surplus (on 1 July 2017) of $919,276, anticipated revenue of $2.298m, and allocations of $2.917m, leaving a budgeted closing balance (at 30 June 2018) of $300,000.

Previous Board decisions effectively require that, in preparing the Scheme’s annual budget:

A. regular ongoing or multi-year projects must be accounted for first, and then;

B. remaining funds are to be split 60/40 between an LGA round of applications in March,and an LG sector applicant round in July.

Accordingly, the proposed budget of $2.917 million includes, in category A:

Regional Capacity Building Allocations totalling $1.027 million. These are madeup of two components:

The “rubble royalties” (DSD TER) estimated at $750,000 which (pursuantto a Board resolution of May 2016) are returned to the LG regions fromwhence they originated; and

A ‘base level’ amount of $39,500 to each of seven regions;

two LGA-managed ongoing projects ($150,000 LG ‘Awareness Raising’, seebelow, and $27,000 for revising the Model Financial Statements) totalling$177,000

$151,000 in administration costs (which sum includes a one-off allocation of$14,000 to be reserved for publicising the library of R&D-funded projects); and

a contingency of $40,000 for any CEO-initiated projects that might be approvedduring the year (pursuant to a Board-delegated CEO authority).

The draft budget then proposes allocating the remainder to Category B projects, according to the 60/40 formula:

$907,000 to LGA-initiated projects; and

$614,700 to sector-initiated projects, applications for which will be invited in June-July.

A spreadsheet summarising the 13 LGA applications recommended for funding (totalling $907,000) is provided as Attachment 1.

National Disability Insurance Scheme – encouragement for potential project later in 2017

The Committee resolved that:

“Given that the National Disability Insurance Scheme is a critical matter for the LG sector, the Advisory Committee recommends that the Board consider examination of this issue, by either encouraging either a CEO-initiated R&D Project, or encouraging an application from any interested party in the July-August round of applications.”

A motion to similar effect, put forward by the Town of Gawler, was passed at the LGA’s Ordinary General Meeting on 21 April 2017. There is no need for the Board to take immediate action on this recommendation. Members will note that this focus area has been picked up in the draft LGA Annual Business Plan and LGA officers will work with interested



councils to develop a project scope and source funding, which may include an application for R&D funding in July 2017.

Local Government Awareness Raising

The LGA Board, on 20 March 2014, approved an “ongoing awareness strategy” covering a period of five years, “subject to annual budget allocations.”

The intention of this funding was to create long-term brand awareness for Local Government to reinforce engagement by communities with Councils, to support Council efforts in this area and in particular to support engagement with Local Government elections.

The findings of community awareness research commissioned by the LGA in 2011 provided the basis for the development of the ongoing awareness strategy. The objective of the strategy has been the development and implementation of public campaigns to create community awareness of Local Government services and positively position the sector within the community.

Research undertaken in 2013 was compared to the 2011 benchmark awareness levels and perceptions (attitudes) of the Local Government brand to assess the effectiveness of the awareness strategy. The report demonstrated that the strategy and various campaigns had improved top of mind awareness and brand perception of local government. The report concluded that the LGA’s ongoing awareness strategy had been highly successful

In 2014-15 and 2015-16 the LGA Board allocated $150,000 of LGA Secretariat funds to match LGR&DS allocations of $150,000 in each year, thereby providing a total allocation of $300,000 in each of the two years. The most recent allocation of funds from the R&D Scheme was made in November 2015. The Board approved $150,000 for what then became the R&D Project 2015.55 - Local Government Awareness Raising 2016.

Preparatory work commenced in 2016 including a review of the 2014 Local Government Elections campaign (with input from all key stakeholders) and updated market research which examined awareness and attitudes towards government. This updated research will inform the 2017 local government awareness raising strategy, which includes the following activities:

Promotion of community engagement on council budgets;

Creative materials that councils can customise to promote the value of servicesdelivered by councils

Customisable flyers, for councils to include with rates notices about council services

Development of a Local Government Election communication strategy and creativematerials

The proposed R&D Scheme Budget for 2017-18, which is presented for the Board’s approval, includes an allocation of $150,000 to undertake these activities. Provided that the Board adopts the recommended Scheme Budget, this would release R&D funds of $150,000 to continue a project of “Local Government Awareness Raising” in 2017-18. This work has been identified as a key priority for the sector in the draft LGA 2017-18 Annual Business Plan. Note that these funds will not be used towards the current anti rate capping campaign.

In terms of future years, funding for this activity will be provisioned within the LGA Long Term Financial Plan as a recurrent activity in the years where costs will be incurred, thereby reducing reliance on R & D Scheme funding.



Information required by the LGA Board for R&D Scheme funding:

the 2017-18 R&D Scheme Budget currently before the Board anticipates this likelycommitment of $150,000,

the Advisory Committee has been consulted on the proposed budget and hasraised no concerns; and

for the purposes of the 60% rule, the allocation for 2017-18 is again to be treatedas being in Category A (see above) which has the effect of reducing the pool of“available annual funding” for the Scheme’s twice-yearly funding rounds forCategory B projects.


The recommendations above can be funded entirely from the resources of the Local Government Research & Development Scheme.

Of additional note and relevance, the Board’s reference is also drawn to the report outlining the LGA’s draft 2017/2018 Annual Business Plan & Budget on the agenda for the 18 May 2018 meeting. This Report demonstrates how the R&D funded LGA projects are accounted for as part of the LGA Secretariat’s resourcing. Note also that the process of R&D Scheme funding has been included in the scope of the Governance Review currently being undertaken. The outcomes of this review will ensure transparency of funding arrangements and the delivery of project outcomes for the benefit of the sector.


Recommended LGA Secretariat-initiated Projects 2017-18

LGA of SA ECM XXXXX < File Name > Page 1 of 3

Project number Project name What is it intended to achieve? Committee

recommendation Proposed duration

2017.01 EARS Enhancement Enable EARS to push data in real time to State disaster damage assessment platform $20,000 6 months

2017.02 Updating the Coastal Adaptation Decision Pathways Guidance

Aspects of existing guidance that will be updated include:

Synthesis of current coastal adaptation tools (and ID of relevant info)

Climate projections (issues and threats)

Responsibilities and limitations

Policy options

Decision making pathways

Financial modelling guidelines

Decision support tool

$30,000 12 months

2017.03 Strategic Investment Plan for Future Proofing Infrastructure

The LGA is currently working with Asset Managers to develop guidelines that will provide assistance for incorporating climate risk considerations into Asset Management Plans. This proposed next stage is to work with councils to develop a strategic investment plan to predict and budget for damage to critical infrastructure as a result of extreme events and observed changes in the climate. This project could potentially include working with IPWEA to incorporate more climate risk data into the NAMS+ database.

$50,000 18 months

2017.04 Development of Community Wellbeing Monitor

Develop a sector‐wide Community Wellbeing Monitor to contribute to shaping the work of the Community Wellbeing Alliance (currently under development with SA Health); inform the legislative requirement of Regional Public Health Planning, and act as a resource for State and Local Government to understand the broad wellbeing of the people of South Australia.

$50,000 12 months

2017.06 Review of water management legislative and policy arrangements in SA

Examination of existing legislation to determine gaps that restrict the development of appropriate flood mitigation strategies e.g. watercourse and levee management, watercourse vs stormwater, management on private land, etc. This will feed in to the Flood Reform Taskforce and allow LG to present alternative arrangements to meet stakeholder needs in managing flood and stormwater management. This will support LGA leading reform on this matter.

$20,000 12 months

2017.07 LG Elections 2018, Support and Promotion

To enable the LGA to meet its statutory and best practice obligations for local government elections scheduled for November 2018 The project will also respond to recommendations set out in the 2016 Review of the LGA’s 2014 Local Government Election Processes.

$142,000 12 months

2017.08 Evidence to inform LG Advocacy for a Strategic Population Policy

Given the decline in South Australia's regional population growth, an understanding of population trends in the state is needed to inform planning policies in the future. This is particularly relevant for regional councils, where depopulation is leading to reduction in services, jobs and community wellbeing.

$40,000 6 months






2017.09 LGA Outreach Program

Continue for another 12 months, the Outreach Services Program, to: • Support improved regional delivery of various services to LGA member councils, including

procurement, education and training, risk services and Local Excellence reform initiatives;• Work with LGA member Councils and the LGA to identify and scope any new services or assistance

that may support more efficient long term outcomes for Councils;• Facilitate stronger Council collaborative projects and coordinate various Council "shared services"

group meetings as required;• Manage or oversee a variety of shared service project delivery arrangements for LGA member

Councils as appropriate;• Undertake research into the needs and develop proposals, funding applications and joint tenders for

sharing services between Council groups;

Support delivery of the regional strategic and business plans as relevant and consistent with the pilot.

$300,000 12 months

2017.10 LGA Schemes Review ‐ Phase 2

Continue the LGA Schemes Review governance arrangements, in three key areas being: • review of the Finity Batt Report to determine matters for discussion;• define and implement change strategy;• develop and implement suite of improved governance arrangements in line with Finity Batt and

Auditor General Reports

$100,000 12 months

2017.12 Review & Revision of the LGA’s Authorised Persons webpages

The LGA has a significant amount of information to assist councils with managing authorisations under a range of statutes. These pages have not been updated since 2012. They also failed to make the transition to the new website in an orderly manner and need a complete re‐vamp.

$5,000 6 months

2017.13 LG Workforce Alignment

Pursuing a common alignment of the 11,000 strong local government workforce ‐ to establish an industrial framework which enables a culture of meaningful engagement between employees, management and unions that is open and respectful. The funding sought is to continue the LGA's employment of specialist IR/HR employee to undertake the next phases in this ongoing project. Also, some legal advice will be sought as to how existing industrial instruments (State Awards & council enterprise agreements) are migrated to a Sector wide agreement.

$75,000 subject to gaining prior sufficient levels of acceptance from CEO's

12 months






2017.14 Continuation of the role of e‐learning developer

To extend the role of an 'e‐learning developer' for another 12 months to continue the development and delivery of high quality, flexible online training programs specific to LG needs, with benefits in:

• ‐ Reduced travel and out‐of‐office time• ‐ Reduced costs• ‐ Self‐paced training• ‐ Relevant and engaging methodology• ‐ Available 24x7

$30,000 12 months

2017.15 Community Engagement

Provision of a measurement tool to be able to measure the outcomes of community engagement and consultations on annual budget programs and other areas. RE‐DEFINED to reflect Committee Recommendation, to now become:

Elected Member Training in Community Engagement including developing understanding of thepractices and techniques (face‐to‐face and on line) that support sustainable outcomes.

Provision of a measurement tool to be able to measure the outcomes of their communityengagement and consultations on annual budget programs.

$20,000 subject to re‐defining the project, to the

satisfaction of the Board, to focus

upon next developments in

community engagement

12 months

2017.16 Develop an Elected Member training pathway

Develop a training pathway offering Elected Members the opportunity to upgrade the current mandatory Elected Member Training Standard to the national qualification of 'Elected Member Skill Set'.

$25,000 12 months

TOTAL $907,000


Local Government Association of SA INCLocal Government Research and Development Scheme

Allocations Report for Period Ended 31 March 2017

2017/18 2015/16

BudgetDraft

ActualYear to Date

March

BudgetFull Year

Variance Forecast Actual

$ $ $ $ $ $Income

LGFA TER Project funding 1 1,508,000 240,301 1,600,000 (1,359,699) 640,301 1,864,747 DSD TER Project funding 750,000 646,070 600,000 46,070 1,021,070 357,063

R&D Funds Returned - LGA internal 2 40,000 17,401 - 17,401 30,000 211,887Total Income 2,298,000 903,772 2,200,000 (1,296,228) 1,691,371 2,433,697

Project allocations Administration Fees 151,000 76,310 135,000 (58,690) 132,350 128,376

LGA Managed (External) 3 1,027,000 794,177 873,793 (79,616) 794,177 271,082

LGA Managed (Call) 4 907,566 1,450,000 1,450,000 - 1,450,000 -

LGA Managed (CEO/Board Initiated) 5 40,000 61,931 40,000 21,931 61,931 -

LGA Managed (Ongoing) 6 177,000 177,089 177,000 89 177,089 176,300 Externally Managed Projects 614,710 386,276 480,000 (93,724) 386,276 479,757Total allocations LG R&D SCHEME 2,917,276 2,945,783 3,155,793 (210,010) 3,001,823 1,055,515

Net Surplus/(Deficit) LG R&D SCHEME (619,276) (2,042,011) (955,793) (1,086,218) (1,310,452) 1,378,182

Statement of R&D ReservesOpening Reserve Balance: 919,276 1,875,069 1,875,069 - 1,875,069 496,887Plus Inflows 2,298,000 903,772 2,200,000 (1,296,228) 1,691,371 2,433,697Less Outflows (2,917,276) (2,945,783) (3,155,793) 210,010 (3,001,823) (1,055,515)Closing Reserve Balance 300,000 (166,942) 919,276 (1,086,218) 564,617 1,875,069

Note

5 Refers to projects initiated by the CEO at any time during the year, and managed internally by the LGA. Board initiated projects are also recorded here.

6 Refers to LG Awareness Campaign ($150k per annum) and Model Financial Statements (2015/16 budget $26k, 2016/17 budget $27k)

2016/17

1 Year to date revenue has been reflected on an accrual basis. An amount of $467,000 is recorded as accrued revenue to reflect LGFA's March quarter TER payment.2 The R&D funds returned - LGA internal refers to both internal and external returned funds.3 Refers to Regional Capacity Building allocations indexed by CPI + DSD TER project (2015/16 forecast $300k, 2016/17 $600k)4 Allocations 'LGA' refer to internal LGA allocations


Local Government Association of SA INCLocal Government Research and Development Scheme

Allocations for period ended 31 March 2017 31-Mar-17R&D No. $$$

Internally Managed Projects25.01.01 R&D Administration 76,31025.02.34 Regional Capacity Building 794,1772015.55 Awareness and referendum campaign 150,0002015.54 Annual revision of Model Financial Statements 27,089

Total Internally Managed Projects 1,047,576

R&D No. LGA Managed (Call)

2016.01 Street lighting (alternatives) 55,000

2016.02 Review of Arrangements for Code of Conduct Complaints 28,000

2016.03 Planning Reform Implementation program 90,000

2016.04 Supporting Local Government Reform 160,000

2016.05 Audit Committee 34,500

2016.06 LG Workforce Alignment 30,000

2016.07 Financial Sustainability & Rate revenue 60,000

2016.08 Schemes Review 80,000

2016.09 Governance 50,000

2016.10 Rubble Royalties 25,000

2016.12 Human Services Reform and Funding 50,000

2016.13 Flexible Learning Delivery 60,000

2016.14 LGA Outreach Services 300,000

2016.15 Shared Services Analysis and Economic Modelling 40,000

2016.16 State Emergency Management Plan – change implementation & resources 75,000

2016.17 Business Analyst Business Case 80,000

2016.18 Asset Management Guidance for small rural Councils 6,500

2016.19 Strategic Region-based Investment Attraction 20,000

2016.20 i-Responda – resource & contact management system 15,000

2016.21 i-Responda - app 35,000

2016.22 Development of a Local Government Strategic Procurement Policy 21,000

2016.23 Alternative Funding Mechanisms for Adaptation Activities 30,000

2016.24 Social Media 2.0 10,000

2016.26 Building Upgrade Finance Implementation 20,000

2016.27 Enhanced Climate Risk Assessment and Decision Making 30,000

2016.28 Feasibility Study for Low Emissions Investment 20,000

2016.29 Review of the Food Regulations 2002 25,000Total LGA Managed (Call) 1,450,000

R&D No. LGA Managed (CEO initiated)2016.55 Development and implementation of an emergency information splash page for councils 8,0002016.08 Schemes Review 4,0362016.56 Infrastructure Project 30,0002016.33 Audit of Energy Efficiency Activities 19,895

Total LGA Managed (CEO initiated) 61,931

R&D No. Externally Managed Projects

2016.35 Eyre Peninsula Regional Governance Part 5: Regional Strategic Plan 50,000

2016.31 Instruments of Delegation - Airports 8,500

2016.52 Enhancing Professionalism in LG Environmental Health 20,000

2016.36 Realignment of the Hills Rail Corridor: Scoping Study towards options Cost Benefit Analysis 25,000

2016.56 The Role of Public Toilets in Mobility and Social Inclusion 23,926

2016.39 Places & Spaces - Facility Booking System for Councils 25,000

2016.53 Removal of organic chemicals by filtration in aquifer recharge schemes 25,000

2016.57 Approaches to integrated economic development and using economic data in local government 25,000

2016.58 An Empirical Assessment of Rate-pegging for South Australian Local Government 25,000

2016.37 Suicide Prevention Networks - development of an Evaluation Toolkit 30,000

2016.45 Guideline for Councils to plan climate change actions and identify monitoring needs 38,850

2016.32 Disaster Ready 40,000

2016.42 Valuing Social Outcomes 50,000Total Externally Managed Projects 386,276

Grand Total 2,945,783



7.9 LGA Subscriptions Formula – Additional Review

From Previous Resolutions

From: Kathy Jarrett, Executive Director Corporate & Member Services





Recommendation That the LGA Board:

1. notes the feedback received from councils concerning the further modellingundertaken regarding the subscription formula options based on thedifferent population bands; and

2. adopts the following formula for the calculation of LGA SA subscription feesto be phased in over a period of three years:

i. there should be an equal flat component for each member designed tocollect at least 20% of the overall subscriptions;

ii. the 40% population and 60% revenue (3 year average) split for thebalance of the subscription should be maintained;

iii. the three times capped subscription limit should be eliminated andreplaced with a model which involves a declining block contributionrate for set increments in population and revenue. This means thatlarger councils (population and revenue) will still pay more than smallerones, but at a lesser rate of increase.

Discussion In 2015/2016 the LGA Board reviewed the methodology for calculating membership subscriptions, and in May 2016 received a report outlining four options for consideration together with the outcomes of council consultation on these options.

The Board resolved to adopt Option 1 as an approach to reforming the subscription formula. This option was to:

1. Increase the flat amount collected to 20% (up from 13%) of subscriptions using thecurrent three population tiers.. This resulted in councils with population less than10,000 having a flat charge of $3,748, those with 10,000 to 50,000 with a flat chargeof $7,497 and those greater than 50,000 with a flat charge of $11,245;

2. maintaining the 40% population and 60% revenue weighting for the balance ofsubscriptions;



3. using a three year average for the revenue calculation; and

4. maintaining the three times average cap.

In addition to resolving this option, the Board requested that further research and modelling be undertaken on using alternative population bands for the tiering of the flat component of the subscription fee including the bands used by the Remuneration Tribunal.

This further modelling was requested in recognition of the circumstance where the largest capped council (Onkaparinga) is around twice the size (population and revenue) of the smallest capped council (Marion).

The further modelling has now been undertaken by Morton Consulting Services Pty Ltd, the outcomes of which were considered by the Board at the March 2017 meeting. At this meeting, the Board resolved to:

1. undertake further consultation with member councils regarding the remodelledsubscription formula options based on the different population bands as well as thenewly identified approach being an equal flat component for all councils and removalof the 3 times cap; and

2. requested the outcomes of the consultation be presented to the May 2017 Boardmeeting as part of the Board’s consideration of subscription fees for application inthe 2017/2018 year.

The consultation has now been undertaken, the outcomes of which are presented in this report.

Consultation findings

Consultation responses received by the LGA included 17 written responses with:

- 9 from metropolitan councils being 6 large councils and 3 medium sized councils.

- 8 from regional councils.

A summary of the responses received is presented at Appendix 1. As will be noted, from the 17 responses received:

- 6 councils favoured retaining the May 2016 Board resolution on the basis thatchanging the population bands has minor impact on subscription fees.

- The next highest response was 4 councils preferring to retain the option endorsed bythe Board in May 2016 but with applying the remuneration tribunal population bandsto the formula when calculating the flat component of the fee.

- The remaining 7 responses were spread across 4 different options.

- The combined number of councils preferring some change from the May 2016 Boardresolution totalled 11. Out of these 11 councils, 7 preferred to shift from the currentpopulation bands to bands based on the Remuneration Tribunal information.

Further Matters of Consideration

For information purposes, attached to this report is a copy of the detailed report prepared by Morton Consulting Services Pty Ltd. A summary of this report was made available to councils for consultation purposes.

The Board will recall from the March 2017 meeting Mr Morton recommended in his report that a fair and equitable distribution of LGA SA subscriptions between members could be achieved by the following formula:



1. There should be an equal flat component for each member designed to collectat least 20% of the overall subscriptions;

2. The 40% population and 60% revenue (3 year average) split for the balance ofthe subscription should be maintained;

3. The three times capped subscription limit should be eliminated and replacedwith a model which involves a declining block contribution rate for setincrements in population and revenue. This means that larger councils(population and revenue) will still pay more than smaller ones, but at a lesserrate of increase.

The above approach is represented at Option 5 at Appendix 1.

Although only two councils indicated their preference for this option out of 17 respondents, the Secretariat highlights that this option represents the fairest and most equitable distribution of LGA SA subscriptions between members. This option is therefore the recommended option.

Note that should the Board resolve this approach, the new formula could be phased in over 3 years to ensure councils have time to adjust their budgets accordingly.

Note also that none of the options presented change the total subscription fee raised by the LGA.


This activity has no financial or resource implication on the LGA.


APPENDIX 1


LGA Subscription Review – Consultation Outcomes

Option Council Preference Total

1. No change from May 2016 resolution: Tumby Bay Tatiara Port Adelaide Enfield Loxton Waikerie Lower Eyre Peninsula Adelaide Hills Council

6

On the basis that changing the population bands has minor impact on subscription fees, the original Board resolution to adopt Option 1 could be retained.

2. Retain Option 1 but apply Remuneration Tribunal populationbands:

Cleve Elliston Orroroo Carrieton

NPSP

4

In the interests of applying population bands consistent with that used by the Remuneration Tribunal, the original Board resolution to adopt Option 1 be retained but using Remuneration Tribunal’s categories as a general guide to population bands.

3. Retain Option 1 but apply modified Remuneration Tribunalpopulation bands:

Charles Sturt 1

In the interests of applying population bands consistent with that used by the Remuneration Tribunal, the original Board resolution to adopt Option 1 be retained but using a modified Remuneration Tribunal categories as a general guide to population bands.

4. New Option of one equal flat charge for all councils, and retaincap:

West Torrens

Marion

2

Given the new information now available through the further modelling of one equal flat charge for all councils, an alternative subscription fee formula of having one common flat component for all councils like other states, with no population steps for this part of the formula. This option would retain the 40% population and 60% revenue weighting for the balance of subscriptions, use a three-year average for the revenue calculation, and maintain the three times average cap. Note that this option could be phased in over time to allow smaller councils the opportunity to adjust their budgets on an incremental basis.

5. New Option of one equal flat charge for all councils, andremove cap in favour of declining block rate based on populationand revenue:

Campbelltown

Salisbury

2

Given the new information now available through the further modelling of one equal flat charge for all councils (no tiers) and removing the cap, an alternative subscription fee formula as follows could be adopted, to be phased in over time to allow smaller councils the opportunity to adjust their budgets on an incremental basis.

6. New Option of applying modified Remuneration Tribunalpopulation bands to the flat component and remove the cap infavour of a declining block rate based on population and revenue:

A further new option suggested by councils combining the application of the Remuneration tribunal to the flat fee component of the formula, and removing the cap.

Tea Tree Gully

Playford 2


1

Review of

LGA SA Membership Subscription

Methodology 2017

Review of Member Subscriptions Formula


LGA of SA ECM 649176 Review of LGA SA Member Subscription Methodology 2017 Page 2 of 36

Prepared on behalf of: Local Government Association of South Australia

Prepared by: Morton Consulting Services Pty Ltd January 2017



Executive Summary This document further reviews subscription formulae options as presented in the report by Morton Consulting Services Pty Ltd of December 2015. This January 2017 review was requested to model the four subscription formulae options proposed in the December 2015 report, using a series of different population bands for the flat component of each option.

The four options modelled in the December 2015 report were:

Option 1: Flat amount to collect 20% using the voting capacity steps as at present. Maintaining the 40% population and 60% revenue weighting for the balance of subscriptions. Using 3 year average revenue. Cap at 3 times average subscription.

Option 2: Flat amount to collect 20% in current voting steps. Maintaining the 40% population and 60% revenue weighting for the balance of subscriptions. Eliminating the 3 times average cap and replacing this with a declining block rate based on three population and revenue bands.

Option 3: As for Option 2 but with four population and revenue bands for the balance of subscriptions.

Option 4: As for Option 2 but with flat amount set to collect 30% of total subscriptions.

The following observations present a number of issues which need to be considered when adopting any revised subscription model:

1. The current population tiered approach to the flat component does not conform with theLGSA principle that some services have a fixed benefit to all members, irrespective ofpopulation or revenue base. It also does not reflect the common approach of other StateAssociations where the flat component is an equal amount per member;

2. At present, Councils less than 10,000 population contribute only 17% of subscriptions butaccount for 50% of LGSA membership numbers. They have 31% of overall votingnumbers.

3. Councils over 40,000 population (plus Adelaide City) represent 19% of LGSA members andcontribute 50% of subscription revenue. They have 32% of overall voting numbers;

4. The eight capped councils (12% of members) contribute 35% of LGSA subscriptions andhave 20% of overall voting numbers;

5. The three times average subscription cap in the current subscription formula results in thelargest council (revenue and population) paying the same amount as a council with almosthalf the population and revenue. This cap (currently $94,382) is actually nine times theaverage subscription paid by the 50% of members with population less than 10,000;

6. The current LGSA subscription amount for the smallest council ($5,253 subscription with852 population) is low when compared with other State Associations. In NSW (pre-amalgamation), the smallest council (population 1150) pays more than $13,000 while inQueensland, the smallest council (population 300) pays around $15,000;

7. While some State Associations use population tiers to determine member votingentitlements, they do not use these tiers in their subscription formula.



The modelling undertaken for this review addresses each of the four subscription options presented in the December 2015 report viz:

Maintaining the current three tiers based on voting entitlement. This essentially updatesthe options presented in the December 2015 report using current population and revenuefigures (Base Case);

Using the Remuneration Tribunal SA categories as a general guide to five population steps(RTSA Model);

Modifying the above Remuneration Tribunal SA steps to reduce the step increments atlower population levels while increasing the increments for councils greater than 70,000population (Modified RTSA);

Having one common flat component for all councils similar to other State Local GovernmentAssociations with no population steps (No Tiers).

The No Tiers model has been included as the use of tiers for the flat component does not completely conform with the LGSA principle that some services have a fixed benefit to all members, irrespective of population or revenue base, as the flat component in each tier takes into account the population base of the council (which is then again considered in the 40% distribution of the balance of subscriptions).

As can be seen from the analysis undertaken for this report, a change from the current population tiers could be used to achieve a range of different outcomes. The key to this is the stepped increment adopted for increases to the flat component in each tier. As additional tiers are added, flexibility to change the step increments increases. There are numerous variations in tier steps that could be modelled. However, it is considered that the tier models analysed provide sufficient information to assist decision making.

The May 2016 Board decision to implement Option 1 of the December 2015 review (termed the Base Case in this review), means there will be variations in the changes to individual council subscriptions for 2017/18.

Councils less than 10,000 population generally will have increases averaging around $1,000 in the subscription. This is primarily the result of moving to 20% of total subscriptions being collected from the flat component (rather than 13%). For councils less than 10,000 population, the flat component will be $3,842 rather than $2,500 in the 2016/17 subscription.

Councils above 20,000 population, other than those on the cap, generally have a reduction in subscriptions as a result of the increased contribution from smaller councils.

To provide a comparison of how the modelled changes to the flat component impact on individual councils, Option 1 (retaining the 3 times cap) and Option 2 (eliminating the cap and using a declining stepped population and revenue approach) have been compared with the “Base Case”for each of the modelled flat component approaches noted above. The detailed report also contains the modelling for Options 3 and 4.

Option 1 (maintaining 3 times cap)

Using the RTSA model (five tiers) results in a reduction in subscriptions of just under $1,000 for councils less than 4,000 population compared with the Base Case (Board Decision). However, councils from 4,000 to 10,000 face an increase of around $1,000 because of the increment (1.6) in the step in the RTSA remuneration approach. Councils in the 10,000 to 20,000 range receive a reduction of around $1,000.



By modifying the incremental increases in the five tiers (Modified RTSA), the small councils (<4,000) still receive a reduction of just under $1,000 relative to the Base Case while those in the 4,000 to 10,000 range have relatively small increases (around $100). Councils over 30,000 population (other than capped councils have an increase around $3,000.

Having one equal flat charge (no tiers)results in councils with a population less than 10,000 facing increases relative to the base case of up to $2,500 per year. Councils over 10,000 typically have a reduction of around $2,500 (apart from capped councils). However, there would be two less councils reaching the cap under this approach.

Option 2 (eliminating the cap)

Under the current tier approach to the flat component, there are generally small increases for councils under 4,000 population (averaging under $300) relative to the Base Case. Councils between 4000 and 10,000 population have increases averaging around $1,000. The beneficiaries are most of the capped councils with some significant reductions.

Under the RTSA model, councils less than 4,000 have reductions while those in the 4,000 to 10,000 range have increases of around $2,000. Again, most of the capped councils have reductions.

The increases for the 4,000 to 10,000 range are moderated in the Modified RTSA approach while those in the 30,000 to 70,000 range have increases. Again, most currently capped councils have reductions.

With one flat charge (no tiers), councils less than 10,000 have increases in the $2,500 to $4,000 range.

Detailed tables are presented in the report for each option and the variations to the flat component.

The results of modelling for this review coupled with observations made in the report in relation to current subscription issues along with practices in other State Associations suggest that the following approach could result in a fair and equitable distribution of LGSA subscriptions between members:

1. There should be an equal flat component for each member designed to collect at least 20%of overall subscriptions;

2. The 40% population and 60% revenue (3 year average) split for the balance ofsubscriptions should be maintained;

3. The three times capped subscription limit should be eliminated and replaced with a model(eg Option 2 or Option 3 in the analysis undertaken) which involves a declining blockcontribution rate for set increments in population and revenue. This means that largercouncils (population and revenue) will still pay more than smaller ones, but at a lesser rateof increase.

The modelling included for the No Tiers approach in this report contains the indicative outcomes from the approach noted above.



1 Background The purpose of this report was to further review subscription formula options as presented in the report by Morton Consulting Services Pty Ltd of December 2015.

This current review was requested to model the four subscription formula options proposed in that report using a series of different population bands for the flat component of each option. In the December 2015 report, the flat component was calculated using the LGA SA voting bands based on three population increments (less than 10,000, 10,000 to 50,000 and greater than 50,000).

In May 2016, following consultation with Member Councils. the LGA Board resolved to:

Note the consultation report outlining the outcomes of the review of LGA SA MembershipSubscriptions Formula;

Adopt the following approach to reforming the LGA SA Subscription Formula:o An increase in the flat amount to collect 20% of subscriptions.o Maintaining the 40% population and 60% revenue weighting for the balance of

subscriptions.o Using 3 year average revenue.o Maintaining the 3 times average cap.

Endorse the introduction of the above approach being deferred until the 2017/2018 financialyear to allow councils sufficient time to plan.

Request that prior to the introduction of the above approach, further research and modellingbe done on using alternative population bands for the tiering of the flat component of thesubscription fee including the bands used by the Remuneration Tribunal.

Request that the LGA Governance Review take into account the feedback provided as partof this review concerning:

o the population bands and their application to voting rights, and

o the review of service delivery and value for money (efficient use of LGAsubscriptions) of LGA operations.

The four options modelled in the December 2015 report were:

Option 1: Flat amount to collect 20% using the voting capacity steps as at present. Maintaining the 40% population and 60% revenue weighting for the balance of subscriptions. Using 3 year average revenue. Cap at 3 times average subscription.

Option 2: Flat amount to collect 20% in current voting steps. Maintaining the 40% population and 60% revenue weighting for the balance of subscriptions. Eliminating the 3 times average cap and replacing this with a declining block rate based on three population and revenue bands. For example, a council with a population of 70,000 would pay a subscription of 54 cents for the first 10,000, 48 cents for the next 40,000, and 15 cents for the balance of 20,000 population. A similar approach is taken with the operating revenue component.

Option 3: As for Option 2 but with four population and revenue bands for the balance of subscriptions.

Option 4: As for Option 2 but with flat amount set to collect 30% of total subscriptions.



The following observations present a number of issues which need to be considered when adopting any revised subscription model:

1. The current population tiered approach to the flat component does not conform with theLGSA principle that some services have a fixed benefit to all members, irrespective ofpopulation or revenue base. It also does not reflect the common approach of other StateAssociations where the flat component is an equal amount per member;

2. At present, Councils less than 10,000 population contribute only 17% of subscriptions butaccount for 50% of LGSA membership numbers. They have 31% of overall votingnumbers.

3. Councils over 40,000 population (plus Adelaide City) represent 19% of LGSA members andcontribute 50% of subscription revenue. They have 32% of overall voting numbers;

4. The eight capped councils (12% of members) contribute 35% of LGSA subscriptions andhave 20% of overall voting numbers;

5. The three times average subscription cap in the current subscription formula results in thelargest council (revenue and population) paying the same amount as a council with almosthalf the population and revenue. This cap (currently $94,382) is actually nine times theaverage subscription paid by the 50% of members with population less than 10,000;

6. The current LGSA subscription amount for the smallest council ($5,253 subscription with852 population) is low when compared with other State Associations. In NSW (pre-amalgamation), the smallest council (population 1150) pays more than $13,000 while inQueensland, the smallest council (300 population) pays around $15,000;

7. While some State Associations use population tiers to determine member votingentitlements, they do not use these tiers in their subscription formula.

The modelling in this report analyses the four subscription options but with different population steps for the flat amount as detailed in Section 2 of this report.

2 Modelling for Revised Flat Component The modelling undertaken for this review for each of the four subscription options presented in the December 2015 report includes:

Maintaining the current three tiers based on voting entitlement. This essentially updatesthe options presented in the December 2015 report using current population and revenue;

Using the Remuneration Tribunal SA categories as a general guide to five population steps; Modifying the above Remuneration Tribunal SA steps to reduce the step increments at

lower population levels while increasing the increments for councils greater than 70,000population;

Having one common flat component for all councils similar to other State Local GovernmentAssociations with no population steps.



In presenting each option, the outcomes have been compared with the results from implementation of the above Board decision. The total subscription has been maintained at the 2016/17 level of $2,170,782. A three year average revenue figure has been used for all options modelled.

There are clearly many variations that could be modelled. The purpose of this report is to identify the extent of change that could occur under different approaches to the flat component and the sensitivity of outcomes to such changes.

3 Base Case for Comparison As noted above, a base case resulting from the Board decision noted above has been calculated.

Table 3.1 provides the outcome by council relative to the 2016/17 actual levy. The Base Case uses a 20% flat component with the balance distributed using the 40% population and 60% three year average revenue weighting with a cap at 3 times average subscription.

Table 3.1: Base Case Outcome Council 2016/17

Subscription Base Case

Subscription Change $s

Adelaide, City of 94,382 $94,382 $0

Adelaide Hills Council 50,284 $48,478 -$1,806

Alexandrina Council 43,374 $41,701 -$1,673

Anangu Pitjantjatjara Yunta 5,740 $6,876 $1,136

Barossa Council 38,441 $37,799 -$642

Barunga West DC 7,129 $8,136 $1,006

Berri Bamera Council 20,951 $21,897 $947

Burnside, City of 54,576 $52,050 -$2,526

Campbelltown City Council 59,494 $57,586 -$1,908

Ceduna DC 10,738 $11,396 $658

Charles Sturt, City of 94,382 $94,382 $0

Clare & Gilbert Valleys Council 16,995 $17,384 $389

Cleve DC 6,697 $7,665 $968

Coober Pedy DC 12,437 $13,744 $1,307

Copper Coast DC 27,264 $28,084 $819

Elliston DC 5,975 $6,995 $1,021

Flinders Ranges Council 6,342 $7,409 $1,068

Franklin Harbour DC 5,413 $7,294 $1,881

Gawler, Corp of the Town 32,075 $31,808 -$267

Goyder Regional Council 11,272 $12,614 $1,342

Grant DC 15,370 $15,296 -$74

Holdfast Bay, City of 59,883 $56,691 -$3,192



Council 2016/17 Subscription

Base Case Subscription

Change $s

Kangaroo Island Council 13,902 $14,588 $686

Karoonda East Murray DC 5,746 $6,945 $1,200

Kimba DC 5,739 $6,777 $1,038

Kingston DC 7,468 $8,297 $829

Light Regional Council 24,334 $25,238 $904

Lower Eyre Peninsula DC 11,759 $12,350 $591

Loxton Waikerie DC 24,901 $24,460 -$440

Mallala DC 13,629 $13,706 $77

Marion, City of 94,382 $94,382 $0

Mid Murray Council 19,635 $19,200 -$435

Mitcham, City of 76,093 $73,140 -$2,953

Mount Barker DC 46,304 $44,689 -$1,615

Mount Gambier, City of 35,040 $34,078 -$962

Mount Remarkable DC 8,477 $9,814 $1,337

Murray Bridge, Rural City of 37,278 $35,945 -$1,332

Naracoorte Lucindale Council 18,681 $18,009 -$672

Northern Areas Council 11,395 $11,684 $290

Norwood Payneham & St Peters 49,539 $47,521 -$2,018

Onkaparinga, City of 94,382 $94,382 $0

Orroroo / Carrieton DC 5,253 $6,512 $1,259

Peterborough DC 6,678 $7,538 $860

Playford, City of 94,382 $94,382 $0

Port Adelaide Enfield, City of 94,382 $94,382 $0

Port Augusta, City of 35,849 $34,253 -$1,596

Port Lincoln, City of 24,124 $24,436 $312

Port Pirie Regional Council 28,870 $28,586 -$284

Prospect, City of 29,573 $29,737 $164

Renmark Paringa DC 15,332 $15,171 -$162

Robe DC 7,539 $8,536 $997

Roxby Downs, Municipal Council 13,819 $16,189 $2,370

Salisbury, City of 94,382 $94,382 $0

Southern Mallee DC 7,903 $8,814 $911

Streaky Bay DC 8,856 $9,705 $849



Council 2016/17 Subscription

Base Case Subscription

Change $s

Tatiara DC 15,856 $15,835 -$21

Tea Tree Gully, City of 94,382 $94,382 $0

The Coorong DC 13,682 $13,914 $232

Tumby Bay DC 7,939 $8,659 $720

Unley, City of 52,701 $50,316 -$2,384

Victor Harbor, City of 27,479 $28,225 $746

Wakefield Regional Council 14,147 $14,912 $765

Walkerville, Corp of the Town 11,909 $12,292 $383

Wattle Range Council 25,842 $25,920 $79

West Torrens, City of 78,629 $75,168 -$3,461

Whyalla, Corp of the City 35,729 $34,559 -$1,170

Wudinna DC 6,085 $7,212 $1,127

Yankalilla DC 13,377 $13,702 $324

Yorke Peninsula DC 28,189 $28,191 $2

TOTAL 2,170,782 $2,170,782 -$0

As can be seen from Table 3.1, smaller councils generally have increases of around $1,000 in the subscription. This is primarily the result of moving to 20% of total subscriptions being collected from the flat component (rather than 13%).

For councils less than 10,000 population, the flat component in the base case is $3,842 rather than $2,500 in the 2016/17 subscription. Councils above 20,000 population, other than those on the cap, generally have a reduction in subscriptions as a result of the increased contribution from smaller councils.

4 Outcomes by Option for Current Three Tiers

Table 4.1 presents the outcomes for each of the options modelled in the December 2015 report. In Option 1 (Base Case), Option 2 and Option 3 the flat component contributes 20% while in Option 4 the flat component contributes 30%. Appendix A provides details for each option shown.

The outcomes below are very similar to those shown in the December 2015 report. Differences relate to the increase in overall subscriptions plus changes in population and revenue by council.



Table 4.1: Outcomes for Current Three Tiers by Four Options (change is relative to base case)

Base Case (Option 1)

Option 2 change Option 3 change Option 4 change

Adelaide, City of $94,382 $81,141 -$13,241 $74,484 -$19,898 $75,801 -$18,581

Adelaide Hills Council $48,478 $49,839 $1,361 $50,535 $2,057 $48,411 -$67

Alexandrina Council $41,701 $42,474 $773 $42,997 $1,297 $41,967 $267

Anangu Pitjantjatjara Yunta $6,876 $6,959 $83 $7,011 $135 $8,491 $1,614

Barossa Council $37,799 $38,687 $889 $39,158 $1,359 $38,654 $855

Barunga West DC $8,136 $8,407 $271 $8,470 $334 $9,757 $1,622

Berri Bamera Council $21,897 $23,022 $1,125 $23,251 $1,354 $24,947 $3,050

Burnside, City of $52,050 $53,519 $1,469 $54,286 $2,236 $51,632 -$418

Campbelltown City Council $57,586 $59,072 $1,486 $59,903 $2,318 $58,892 $1,306

Ceduna DC $11,396 $12,210 $814 $12,320 $924 $13,085 $1,689

Charles Sturt, City of $94,382 $90,664 -$3,718 $90,308 -$4,074 $86,535 -$7,847

Clare & Gilbert Valleys Council $17,384 $18,775 $1,391 $18,991 $1,606 $18,830 $1,445

Cleve DC $7,665 $7,846 $181 $7,899 $234 $9,266 $1,602

Coober Pedy DC $13,744 $14,465 $720 $14,582 $838 $15,058 $1,314

Copper Coast DC $28,084 $29,023 $940 $29,337 $1,254 $30,198 $2,114

Elliston DC $6,995 $7,053 $58 $7,093 $98 $8,573 $1,578

Flinders Ranges Council $7,409 $7,546 $137 $7,594 $185 $9,004 $1,595

Franklin Harbour DC $7,294 $7,403 $109 $7,447 $153 $8,879 $1,585

Gawler, Corp of the Town $31,808 $33,108 $1,299 $33,520 $1,712 $33,772 $1,964

Goyder Regional Council $12,614 $13,632 $1,018 $13,760 $1,146 $14,329 $1,715

Grant DC $15,296 $16,736 $1,440 $16,925 $1,629 $17,045 $1,750

Holdfast Bay, City of $56,691 $57,231 $540 $57,980 $1,289 $54,879 -$1,811

Kangaroo Island Council $14,588 $15,610 $1,022 $15,761 $1,173 $16,060 $1,472

Karoonda East Murray DC $6,945 $6,994 $49 $7,033 $87 $8,521 $1,576

Kimba DC $6,777 $6,802 $25 $6,839 $62 $8,353 $1,576

Kingston DC $8,297 $8,591 $295 $8,656 $359 $9,919 $1,622

Light Regional Council $25,238 $26,445 $1,207 $26,739 $1,500 $27,942 $2,704

Lower Eyre Peninsula DC $12,350 $13,348 $998 $13,480 $1,130 $14,081 $1,731

Loxton Waikerie DC $24,460 $25,472 $1,011 $25,733 $1,272 $27,090 $2,630

Mallala DC $13,706 $15,008 $1,303 $15,185 $1,479 $15,534 $1,828

Marion, City of $94,382 $80,094 -$14,288 $81,198 -$13,184 $77,286 -$17,096

Mid Murray Council $19,200 $20,350 $1,150 $20,574 $1,374 $20,207 $1,007

Mitcham, City of $73,140 $68,898 -$4,242 $69,846 -$3,294 $67,489 -$5,651

Mount Barker DC $44,689 $45,772 $1,083 $46,377 $1,688 $44,853 $164



Base Case (Option 1)

Option 2 change Option 3 change Option 4 change

Mount Gambier, City of $34,078 $35,488 $1,410 $35,949 $1,871 $35,854 $1,776

Mount Remarkable DC $9,814 $10,356 $542 $10,441 $627 $11,463 $1,649

Murray Bridge, Rural City of $35,945 $36,812 $867 $37,250 $1,304 $37,013 $1,068

Naracoorte Lucindale Council $18,009 $19,267 $1,258 $19,482 $1,473 $19,260 $1,251

Northern Areas Council $11,684 $12,563 $879 $12,683 $998 $13,394 $1,710

Norwood Payneham & St Peters, City of

$47,521 $48,752 $1,231 $49,419 $1,898 $47,461 -$60

Onkaparinga, City of $94,382 $106,981 $12,599 $98,063 $3,681 $100,812 $6,430

Orroroo / Carrieton DC $6,512 $6,489 -$23 $6,521 $9 $8,079 $1,567

Peterborough DC $7,538 $7,696 $158 $7,747 $209 $9,136 $1,598

Playford, City of $94,382 $81,376 -$13,006 $82,491 -$11,891 $78,408 -$15,974

Port Adelaide Enfield, City of $94,382 $91,443 -$2,939 $90,028 -$4,354 $87,216 -$7,166

Port Augusta, City of $34,253 $34,763 $510 $35,136 $882 $35,220 $967

Port Lincoln, City of $24,436 $25,714 $1,277 $26,001 $1,565 $27,302 $2,866

Port Pirie Regional Council $28,586 $29,745 $1,159 $30,089 $1,504 $30,829 $2,244

Prospect, City of $29,737 $31,101 $1,364 $31,486 $1,749 $32,016 $2,279

Renmark Paringa DC $15,171 $16,715 $1,544 $16,911 $1,741 $17,027 $1,856

Robe DC $8,536 $8,845 $309 $8,905 $368 $10,141 $1,604

Roxby Downs, Municipal $16,189 $17,153 $964 $17,322 $1,132 $17,410 $1,221

Salisbury, City of $94,382 $94,631 $249 $91,597 -$2,785 $90,006 -$4,376

Southern Mallee DC $8,814 $9,182 $368 $9,250 $436 $10,436 $1,621

Streaky Bay DC $9,705 $10,217 $512 $10,297 $592 $11,341 $1,636

Tatiara DC $15,835 $17,027 $1,192 $17,206 $1,371 $17,300 $1,465

Tea Tree Gully, City of $94,382 $82,513 -$11,869 $83,661 -$10,721 $79,403 -$14,979

The Coorong DC $13,914 $15,109 $1,195 $15,262 $1,348 $15,622 $1,708

Tumby Bay DC $8,659 $9,018 $359 $9,089 $430 $10,292 $1,633

Unley, City of $50,316 $51,487 $1,170 $52,194 $1,878 $49,854 -$463

Victor Harbor, City of $28,225 $29,233 $1,008 $29,556 $1,331 $30,382 $2,157

Wakefield Regional Council $14,912 $16,206 $1,294 $16,379 $1,467 $16,581 $1,669

Walkerville, Corp of the Town $12,292 $13,346 $1,054 $13,498 $1,206 $14,079 $1,787

Wattle Range Council $25,920 $26,823 $902 $27,096 $1,176 $28,272 $2,352

West Torrens, City of $75,168 $75,873 $704 $76,917 $1,749 $73,592 -$1,576

Whyalla, Corp of the City $34,559 $35,664 $1,105 $36,102 $1,543 $36,008 $1,449

Wudinna DC $7,212 $7,309 $97 $7,353 $141 $8,797 $1,585

Yankalilla DC $13,702 $14,802 $1,100 $14,945 $1,243 $15,353 $1,651

Yorke Peninsula DC $28,191 $28,891 $700 $29,182 $991 $30,082 $1,891



5 Options using Remuneration Tribunal SA Population Bands The Remuneration Tribunal SA (RTSA) generally uses population tiers to categorise councils for councillor remuneration.

Table 5.1 shows the current tiers (Adelaide City is considered separately). Not all categorisation is based on population alone. Some councils with higher than average revenue have been elevated to higher categories by the RTSA.

Table 5.1: Annual Allowances for Councillors

Category General Population Range

Councillor Remuneration

Ratio to Category 5

1a >100,000 $21500 3.77

1b 50000-100,000 $19000 3.33

2 20000-50000 $15900 2.79

3 10000-20000 $12800 2.25

4 4000-10000 $9100 1.60

5 <4000 $5700

Source: Remuneration Tribunal SA Determination 7 of 2014



For these options, a five tier range has been used generally following the above population ranges but combining categories 1a and 1b to define a five tier range as shown in Table 5.2. The ratio of remuneration increases used by RTSA have been used to define steps in the flat charge for each population tier.

Table 5.2: Population Ranges and Tier Flat amounts for RTSA Option

Tier Population Range

Ratio to Category 1

5 >50000 3.50

4 20000-50000 2.80

3 10000-20000 2.25

2 4000-10000 1.60

1 <4000 1.00

Table 5.3 shows the outcomes for each of the four options for this flat rate approach. Appendix Bprovides details for each option.

Under this approach, councils less than 4,000 population generally have a decrease in subscriptions as a result of a lower flat rate for the first tier. However, those between 4,000 and 10,000 have increases in the range of $1,000 to $2,000 (depending on the option). This is the result of the increase of 1.6 times the lowest tier rate, making their flat component higher than for the current 3 tiers.

This could be moderated by reducing the 1.6 times increase for the second tier. This is examined in the following modified RTSA option (section 6).

Table 5.3: Outcomes for RTSA Flat Rate Population Tiers (change is relative to base case) Base Case

Option 1 change Option 2 change Option 3 change Option 4

change

Adelaide, City of $94,382 $94,382 $0 $82,060 -$12,322 $75,403 -$18,979 $77,179 -$17,203

Adelaide Hills Council

$48,478 $49,320 $842 $50,758 $2,280 $51,454 $2,976 $49,790 $1,312

Alexandrina Council $41,701 $42,566 $866 $43,393 $1,692 $43,916 $2,216 $43,346 $1,645

Anangu Pitjantjatjara Yunta

$6,876 $6,006 -$871 $6,190 -$687 $6,242 -$635 $7,336 $460

Barossa Council $37,799 $38,678 $879 $39,606 $1,808 $40,077 $2,278 $40,032 $2,234

Barunga West DC $8,136 $7,261 -$875 $7,637 -$498 $7,700 -$435 $8,603 $467

Berri Bamera Council $21,897 $20,973 -$925 $22,251 $354 $22,480 $583 $23,790 $1,893

Burnside, City of $52,050 $52,880 $830 $54,438 $2,388 $55,205 $3,155 $53,010 $960

Campbelltown City Council

$57,586 $56,535 -$1,050 $58,300 $714 $59,131 $1,546 $57,734 $148

Ceduna DC $11,396 $10,510 -$886 $11,441 $45 $11,551 $155 $11,931 $535

Charles Sturt, City $94,382 $94,382 $0 $89,892 -$4,490 $89,535 -$4,846 $85,377 -$9,005

Clare & Gilbert Valleys Council

$17,384 $18,505 $1,121 $19,849 $2,465 $20,065 $2,681 $20,441 $3,056

Cleve DC $7,665 $6,791 -$873 $7,076 -$588 $7,129 -$535 $8,112 $448



Base Case


change

Coober Pedy DC $13,744 $12,850 -$895 $13,695 -$49 $13,813 $68 $13,904 $159

Copper Coast DC $28,084 $27,137 -$946 $28,252 $169 $28,566 $483 $29,042 $958

Elliston DC $6,995 $6,124 -$871 $6,284 -$711 $6,323 -$672 $7,419 $423

Flinders Ranges Council

$7,409 $6,537 -$873 $6,776 -$633 $6,825 -$584 $7,850 $440

Franklin Harbour DC $7,294 $6,422 -$872 $6,634 -$660 $6,678 -$616 $7,725 $431

Gawler, Corp of the Town

$31,808 $32,709 $900 $34,027 $2,218 $34,439 $2,631 $35,151 $3,342

Goyder Regional Council

$12,614 $13,752 $1,138 $14,706 $2,092 $14,834 $2,220 $15,940 $3,326

Grant DC $15,296 $16,424 $1,128 $17,810 $2,514 $17,999 $2,704 $18,656 $3,361

Holdfast Bay, City $56,691 $57,504 $814 $58,150 $1,459 $58,899 $2,208 $56,258 -$433

Kangaroo Island Council

$14,588 $15,719 $1,131 $16,684 $2,096 $16,835 $2,247 $17,671 $3,084

Karoonda East Murray DC

$6,945 $6,074 -$871 $6,225 -$721 $6,263 -$682 $7,367 $422

Kimba DC $6,777 $5,907 -$870 $6,032 -$745 $6,069 -$708 $7,198 $421

Kingston DC $8,297 $7,421 -$876 $7,822 -$475 $7,886 -$410 $8,765 $468

Light Regional Council

$25,238 $24,302 -$936 $25,674 $436 $25,968 $730 $26,786 $1,547

Lower Eyre Peninsula DC

$12,350 $13,489 $1,139 $14,422 $2,072 $14,554 $2,204 $15,692 $3,342

Loxton Waikerie DC $24,460 $23,527 -$933 $24,701 $241 $24,962 $501 $25,934 $1,474

Mallala DC $13,706 $14,840 $1,134 $16,082 $2,377 $16,259 $2,553 $17,145 $3,439

Marion, City of $94,382 $94,382 $0 $79,321 -$15,061 $80,426 -$13,956 $76,127 -$18,254

Mid Murray Council $19,200 $20,315 $1,115 $21,424 $2,224 $21,648 $2,448 $21,818 $2,618

Mitcham, City of $73,140 $72,035 -$1,105 $68,125 -$5,015 $69,074 -$4,066 $66,331 -$6,809

Mount Barker DC $44,689 $45,544 $855 $46,691 $2,002 $47,296 $2,607 $46,232 $1,543

Mount Gambier, City of

$34,078 $34,970 $892 $36,407 $2,329 $36,868 $2,790 $37,233 $3,155

Mount Remarkable DC

$9,814 $8,933 -$881 $9,587 -$227 $9,671 -$142 $10,309 $495

Murray Bridge, Rural City of

$35,945 $36,831 $886 $37,731 $1,786 $38,169 $2,223 $38,392 $2,447

Naracoorte Lucindale Council

$18,009 $19,128 $1,119 $20,341 $2,332 $20,556 $2,547 $20,871 $2,862

Northern Areas Council

$11,684 $12,825 $1,141 $13,637 $1,953 $13,757 $2,072 $15,005 $3,321


$47,521 $48,367 $846 $49,671 $2,150 $50,339 $2,817 $48,839 $1,318

Onkaparinga, City $94,382 $94,382 $0 $106,209 $11,827 $97,291 $2,909 $99,654 $5,272

Orroroo / Carrieton DC

$6,512 $5,643 -$869 $5,720 -$793 $5,752 -$760 $6,925 $413

Peterborough DC $7,538 $6,665 -$873 $6,927 -$611 $6,977 -$561 $7,981 $443



Base Case


change

Playford, City of $94,382 $94,382 $0 $80,603 -$13,779 $81,719 -$12,663 $77,249 -$17,133

Port Adelaide Enfield, City of

$94,382 $94,382 $0 $90,670 -$3,711 $89,255 -$5,126 $86,058 -$8,324

Port Augusta, City $34,253 $33,286 -$968 $33,992 -$261 $34,365 $111 $34,064 -$189

Port Lincoln, City $24,436 $23,503 -$933 $24,943 $506 $25,230 $794 $26,146 $1,709

Port Pirie Regional Council

$28,586 $27,638 -$948 $28,974 $388 $29,318 $733 $29,673 $1,087

Prospect, City of $29,737 $30,645 $908 $32,020 $2,283 $32,405 $2,668 $33,395 $3,657

Renmark Paringa DC $15,171 $16,299 $1,129 $17,789 $2,618 $17,985 $2,815 $18,638 $3,467

Robe DC $8,536 $7,660 -$876 $8,075 -$461 $8,135 -$401 $8,986 $450

Roxby Downs, Municipal Council

$16,189 $17,315 $1,125 $18,227 $2,038 $18,396 $2,207 $19,021 $2,832

Salisbury, City of $94,382 $94,382 $0 $93,859 -$523 $90,824 -$3,558 $88,848 -$5,534

Southern Mallee DC $8,814 $7,937 -$877 $8,412 -$402 $8,480 -$334 $9,281 $467

Streaky Bay DC $9,705 $8,824 -$881 $9,448 -$257 $9,527 -$178 $10,187 $482

Tatiara DC $15,835 $16,961 $1,127 $18,101 $2,266 $18,280 $2,445 $18,911 $3,076

Tea Tree Gully, City $94,382 $94,382 $0 $81,740 -$12,641 $82,889 -$11,493 $78,244 -$16,138

The Coorong DC $13,914 $15,047 $1,133 $16,183 $2,270 $16,336 $2,422 $17,233 $3,319

Tumby Bay DC $8,659 $7,782 -$877 $8,248 -$411 $8,319 -$340 $9,137 $479

Unley, City of $50,316 $51,152 $836 $52,406 $2,089 $53,114 $2,797 $51,232 $916

Victor Harbor, City $28,225 $27,278 -$947 $28,462 $237 $28,786 $561 $29,225 $1,001

Wakefield Regional Council

$14,912 $16,042 $1,130 $17,280 $2,368 $17,453 $2,541 $18,192 $3,280

Walkerville, Corp of the Town

$12,292 $13,431 $1,139 $14,420 $2,128 $14,572 $2,280 $15,690 $3,398

Wattle Range Council

$25,920 $24,982 -$939 $26,052 $131 $26,326 $405 $27,116 $1,196

West Torrens, City $75,168 $74,057 -$1,112 $75,100 -$68 $76,145 $976 $72,434 -$2,734

Whyalla, Corp of the City

$34,559 $35,450 $891 $36,583 $2,024 $37,021 $2,462 $37,387 $2,828

Wudinna DC $7,212 $6,340 -$872 $6,540 -$672 $6,583 -$628 $7,643 $431

Yankalilla DC $13,702 $14,836 $1,134 $15,876 $2,174 $16,019 $2,317 $16,964 $3,262

Yorke Peninsula DC $28,191 $27,245 -$946 $28,120 -$71 $28,411 $220 $28,926 $734

6 Modified Remuneration Tribunal Tiers This option changes both the population tiers as well as the increments in the flat charge for each tier relative to the first tier.

As noted in Section 5, using the remuneration increments results in larger increases in the second tier. In this option the increment in the second tier is 1.3 times the lowest tier. The ratios for the higher tiers have been increased. The tiers and ratios used to model this option are shown in Table 6.1.



Table 6.1: Population Tiers and Flat Charge Increments – Modified RTSA

Population Range Ratio to lowest tier

>70001 4.5

30001 to 70000 3.5

10001 to 30000 2.5

4001 to 10000 1.3

<4000 1

Table 6.2 provides details of the outcomes for each of the four options using this approach. Appendix C provides details for each option.

Table 6.2: Outcomes for Modified RTSA Flat Rate Population Tiers (change is relative to base case)

Base Case

Option 1 change Option 2 change Option 3 change Option 4 change

Adelaide City of $94,382 $94,382 $0 $80,800 -$13,582 $74,143 -$20,238 $75,290 -$19,092


$48,478 $51,810 $3,332 $52,436 $3,957 $53,132 $4,654 $52,307 $3,829

Alexandrina Council $41,701 $41,699 -$2 $42,133 $433 $42,657 $956 $41,456 -$244


$6,876 $5,931 -$946 $6,054 -$822 $6,106 -$770 $7,134 $257

Barossa Council $37,799 $37,761 -$37 $38,347 $548 $38,817 $1,018 $38,143 $345

Barunga West DC $8,136 $7,201 -$934 $7,502 -$634 $7,565 -$570 $8,400 $265

Berri Bamera Council $21,897 $21,716 -$181 $22,681 $784 $22,911 $1,014 $24,436 $2,539

Burnside, City of $52,050 $55,414 $3,365 $56,116 $4,066 $56,883 $4,833 $55,527 $3,477


$57,586 $56,720 -$866 $57,827 $241 $58,658 $1,073 $57,024 -$561

Ceduna DC $11,396 $10,491 -$905 $11,305 -$91 $11,416 $20 $11,728 $332

Charles Sturt, City of $94,382 $94,382 $0 $92,356 -$2,025 $92,000 -$2,382 $89,074 -$5,308


$17,384 $17,516 $131 $18,752 $1,368 $18,967 $1,583 $18,795 $1,410

Cleve DC $7,665 $6,726 -$938 $6,941 -$723 $6,994 -$671 $7,910 $245

Coober Pedy DC $13,744 $12,861 -$883 $13,560 -$184 $13,678 -$67 $13,701 -$43

Copper Coast DC $28,084 $27,958 -$125 $28,683 $599 $28,997 $913 $29,687 $1,604

Elliston DC $6,995 $6,051 -$945 $6,149 -$847 $6,188 -$807 $7,216 $221


$7,409 $6,469 -$941 $6,641 -$768 $6,690 -$720 $7,647 $238

Franklin Harbour DC $7,294 $6,352 -$942 $6,499 -$796 $6,543 -$751 $7,522 $228


$31,808 $31,717 -$91 $32,767 $959 $33,180 $1,371 $33,261 $1,453


$12,614 $12,702 $88 $13,609 $995 $13,737 $1,123 $14,294 $1,680

Grant DC $15,296 $15,408 $112 $16,713 $1,417 $16,902 $1,606 $17,010 $1,714

Holdfast Bay, City of $56,691 $60,097 $3,407 $59,827 $3,137 $60,577 $3,886 $58,775 $2,084



Base Case



$14,588 $14,694 $106 $15,587 $999 $15,737 $1,149 $16,025 $1,437


$6,945 $6,000 -$945 $6,090 -$856 $6,128 -$817 $7,164 $219

Kimba DC $6,777 $5,830 -$947 $5,897 -$880 $5,934 -$843 $6,996 $219

Kingston DC $8,297 $7,364 -$933 $7,687 -$610 $7,751 -$546 $8,562 $265


$25,238 $25,087 -$151 $26,104 $866 $26,398 $1,160 $27,431 $2,193


$12,350 $12,436 $86 $13,325 $975 $13,457 $1,107 $14,046 $1,696

Loxton Waikerie DC $24,460 $24,302 -$158 $25,131 $671 $25,392 $932 $26,580 $2,119

Mallala DC $13,706 $13,804 $98 $14,985 $1,279 $15,161 $1,456 $15,498 $1,793

Marion, City of $94,382 $94,382 $0 $81,786 -$12,596 $82,890 -$11,492 $79,824 -$14,558

Mid Murray Council $19,200 $19,348 $148 $20,326 $1,126 $20,551 $1,351 $20,172 $972

Mitcham, City of $73,140 $72,415 -$725 $67,652 -$5,487 $68,601 -$4,539 $65,622 -$7,518

Mount Barker DC $44,689 $47,987 $3,298 $48,369 $3,680 $48,974 $4,285 $48,748 $4,060


$34,078 $34,007 -$71 $35,147 $1,069 $35,609 $1,531 $35,344 $1,266

Mount Remarkable DC

$9,814 $8,895 -$919 $9,451 -$362 $9,536 -$277 $10,106 $292


$35,945 $35,891 -$54 $36,472 $526 $36,909 $964 $36,503 $557


$18,009 $18,146 $137 $19,243 $1,234 $19,458 $1,449 $19,225 $1,216


$11,684 $11,764 $80 $12,540 $855 $12,659 $975 $13,359 $1,675


$47,521 $50,845 $3,324 $51,349 $3,828 $52,016 $4,495 $51,356 $3,835

Onkaparinga, City of $94,382 $94,382 $0 $108,673 $14,291 $99,755 $5,373 $103,351 $8,969


$6,512 $5,563 -$949 $5,584 -$928 $5,617 -$895 $6,722 $210

Peterborough DC $7,538 $6,598 -$940 $6,792 -$746 $6,842 -$696 $7,779 $241

Playford, City of $94,382 $94,382 $0 $83,068 -$11,314 $84,183 -$10,199 $80,946 -$13,436


$94,382 $94,382 $0 $93,135 -$1,247 $91,720 -$2,662 $89,755 -$4,627

Port Augusta, City of $34,253 $34,184 -$69 $34,422 $169 $34,795 $542 $34,709 $456

Port Lincoln, City of $24,436 $24,278 -$158 $25,373 $937 $25,661 $1,224 $26,791 $2,355


$28,586 $28,465 -$121 $29,404 $819 $29,749 $1,163 $30,318 $1,733

Prospect, City of $29,737 $29,627 -$110 $30,761 $1,023 $31,145 $1,408 $31,505 $1,768

Renmark Paringa DC $15,171 $15,282 $111 $16,691 $1,521 $16,888 $1,717 $16,992 $1,821

Robe DC $8,536 $7,606 -$931 $7,940 -$596 $8,000 -$536 $8,784 $247


$16,189 $16,310 $121 $17,129 $940 $17,298 $1,109 $17,375 $1,186



Base Case


Salisbury, City of $94,382 $94,382 $0 $96,324 $1,942 $93,289 -$1,093 $92,545 -$1,837

Southern Mallee DC $8,814 $7,886 -$928 $8,277 -$537 $8,345 -$469 $9,079 $265

Streaky Bay DC $9,705 $8,785 -$920 $9,313 -$392 $9,392 -$313 $9,984 $280

Tatiara DC $15,835 $15,952 $117 $17,003 $1,168 $17,183 $1,348 $17,264 $1,430

Tea Tree Gully, City of

$94,382 $94,382 $0 $84,205 -$10,177 $85,354 -$9,028 $81,941 -$12,441

The Coorong DC $13,914 $14,014 $100 $15,086 $1,172 $15,239 $1,325 $15,587 $1,673

Tumby Bay DC $8,659 $7,729 -$929 $8,113 -$546 $8,184 -$475 $8,935 $276

Unley, City of $50,316 $53,665 $3,349 $54,084 $3,767 $54,791 $4,475 $53,749 $3,432

Victor Harbor, City of $28,225 $28,101 -$124 $28,893 $668 $29,216 $991 $29,871 $1,646


$14,912 $15,021 $109 $16,182 $1,270 $16,356 $1,444 $16,546 $1,634


$12,292 $12,378 $85 $13,323 $1,031 $13,475 $1,182 $14,044 $1,752


$25,920 $25,776 -$145 $26,482 $562 $26,756 $836 $27,762 $1,841

West Torrens, City of $75,168 $74,462 -$707 $74,627 -$541 $75,672 $503 $71,725 -$3,444


$34,559 $34,493 -$66 $35,323 $764 $35,762 $1,203 $35,498 $938

Wudinna DC $7,212 $6,269 -$943 $6,405 -$807 $6,448 -$764 $7,440 $228

Yankalilla DC $13,702 $13,800 $98 $14,778 $1,077 $14,922 $1,220 $15,318 $1,616

Yorke Peninsula DC $28,191 $28,067 -$124 $28,551 $359 $28,842 $650 $29,571 $1,380

7 One Flat Amount per Council

As noted earlier in this report, having one flat component without tiers is a common approach by other State Associations (e.g. New South Wales, Queensland, Western Australia, Tasmania). The rationale for this is that some services have a fixed benefit to all members, irrespective of population or revenue base. This is one of the LGA SA principles for member subscriptions.

Having tiers based on population increments, as at present, does not completely conform with this principle as it takes into account the population base (which is then again considered in the 40% distribution of the balance of subscriptions).

Table 7.1 provides details of the outcome if this flat component approach was adopted. Because the flat component under this approach amounts to $6,292 per council, all councils with a population less than $10,000 have an increase averaging between $2,500 and $3,500. Most other councils have a subscription reduction (except for capped councils in Option 1).

Table 7.1: Outcomes for One Flat Charge (change is relative to base case) Base Case


Adelaide City of $94,382 $94,382 $0 $79,749 -$14,633 $73,092 -$21,290 $73,713 -$20,669


$48,478 $45,826 -$4,458 $48,447 -$1,838 $49,143 -$1,141 $46,323 -$3,961



Base Case


Alexandrina Council $41,701 $39,210 -$4,164 $41,082 -$2,292 $41,605 -$1,768 $39,879 -$3,495


$6,876 $9,354 $3,614 $9,409 $3,669 $9,461 $3,721 $12,166 $6,426

Barossa Council $37,799 $35,400 -$3,041 $37,295 -$1,146 $37,765 -$676 $36,566 -$1,875

Barunga West DC $8,136 $10,583 $3,454 $10,857 $3,727 $10,920 $3,791 $13,432 $6,303

Berri Bamera Council $21,897 $19,877 -$1,074 $21,630 $679 $21,859 $909 $22,859 $1,908

Burnside, City of $52,050 $49,313 -$5,263 $52,127 -$2,449 $52,894 -$1,682 $49,544 -$5,033


$57,586 $50,576 -$8,918 $53,838 -$5,656 $54,669 -$4,824 $51,041 -$8,453

Ceduna DC $11,396 $13,766 $3,028 $14,660 $3,922 $14,770 $4,032 $16,760 $6,022

Charles Sturt, City of $94,382 $94,382 $0 $85,430 -$8,952 $85,074 -$9,308 $78,684 -$15,698


$17,384 $19,612 $2,617 $21,225 $4,230 $21,441 $4,446 $22,505 $5,510

Cleve DC $7,665 $10,123 $3,427 $10,296 $3,599 $10,349 $3,652 $12,941 $6,245

Coober Pedy DC $13,744 $16,059 $3,622 $16,915 $4,478 $17,032 $4,596 $18,733 $6,296

Copper Coast DC $28,084 $25,916 -$1,348 $27,631 $367 $27,945 $681 $28,110 $846

Elliston DC $6,995 $9,470 $3,495 $9,503 $3,529 $9,543 $3,568 $12,248 $6,273


$7,409 $9,874 $3,532 $9,996 $3,654 $10,045 $3,703 $12,679 $6,337

Franklin Harbour DC $7,294 $9,762 $4,349 $9,853 $4,441 $9,898 $4,485 $12,554 $7,141


$31,808 $29,552 -$2,523 $31,716 -$360 $32,128 $53 $31,684 -$392


$12,614 $14,955 $3,684 $16,082 $4,810 $16,210 $4,938 $18,004 $6,733

Grant DC $15,296 $17,573 $2,203 $19,186 $3,816 $19,375 $4,005 $20,720 $5,350

Holdfast Bay, City of $56,691 $53,844 -$6,039 $55,838 -$4,044 $56,588 -$3,295 $52,791 -$7,091


$14,588 $16,882 $2,980 $18,060 $4,158 $18,211 $4,309 $19,735 $5,833


$6,945 $9,421 $3,676 $9,444 $3,699 $9,483 $3,737 $12,196 $6,451

Kimba DC $6,777 $9,257 $3,518 $9,252 $3,512 $9,289 $3,550 $12,028 $6,288

Kingston DC $8,297 $10,741 $3,273 $11,041 $3,574 $11,106 $3,638 $13,594 $6,126


$25,238 $23,138 -$1,196 $25,053 $719 $25,347 $1,012 $25,854 $1,520


$12,350 $14,698 $2,939 $15,798 $4,040 $15,930 $4,171 $17,756 $5,997

Loxton Waikerie DC $24,460 $22,379 -$2,522 $24,080 -$821 $24,340 -$560 $25,002 $102

Mallala DC $13,706 $16,021 $2,392 $17,458 $3,829 $17,635 $4,006 $19,209 $5,580

Marion, City of $94,382 $89,233 -$5,149 $74,859 -$19,522 $75,964 -$18,418 $69,435 -$24,947

Mid Murray Council $19,200 $21,385 $1,750 $22,800 $3,165 $23,024 $3,389 $23,882 $4,247

Mitcham, City of $73,140 $65,761 -$10,333 $63,663 -$12,430 $64,612 -$11,482 $59,638 -$16,455

Mount Barker DC $44,689 $42,127 -$4,177 $44,380 -$1,924 $44,985 -$1,319 $42,765 -$3,539



Base Case



$34,078 $31,768 -$3,272 $34,096 -$944 $34,557 -$482 $33,766 -$1,274

Mount Remarkable DC

$9,814 $12,221 $3,745 $12,806 $4,329 $12,891 $4,414 $15,138 $6,661


$35,945 $33,591 -$3,687 $35,420 -$1,857 $35,858 -$1,420 $34,925 -$2,352


$18,009 $20,222 $1,541 $21,717 $3,036 $21,932 $3,251 $22,935 $4,254


$11,684 $14,048 $2,653 $15,013 $3,618 $15,133 $3,738 $17,069 $5,674


$47,521 $44,892 -$4,648 $47,360 -$2,179 $48,027 -$1,512 $45,373 -$4,167

Onkaparinga, City of $94,382 $94,382 $0 $101,747 $7,365 $92,829 -$1,553 $92,961 -$1,421


$6,512 $8,998 $3,745 $8,939 $3,686 $8,971 $3,718 $11,754 $6,501

Peterborough DC $7,538 $10,000 $3,322 $10,146 $3,469 $10,197 $3,519 $12,811 $6,133

Playford, City of $94,382 $92,166 -$2,216 $76,141 -$18,240 $77,257 -$17,125 $70,556 -$23,826


$94,382 $94,382 $0 $86,208 -$8,173 $84,793 -$9,588 $79,365 -$15,017

Port Augusta, City of $34,253 $31,939 -$3,910 $33,371 -$2,478 $33,744 -$2,106 $33,132 -$2,717

Port Lincoln, City of $24,436 $22,355 -$1,769 $24,322 $198 $24,609 $485 $25,214 $1,090


$28,586 $26,406 -$2,464 $28,353 -$517 $28,697 -$172 $28,741 -$129

Prospect, City of $29,737 $27,530 -$2,043 $29,709 $136 $30,094 $520 $29,928 $355

Renmark Paringa DC $15,171 $17,451 $2,119 $19,165 $3,833 $19,361 $4,029 $20,702 $5,370

Robe DC $8,536 $10,974 $3,435 $11,295 $3,756 $11,355 $3,816 $13,816 $6,277


$16,189 $18,446 $4,627 $19,603 $5,784 $19,772 $5,953 $21,085 $7,266

Salisbury, City of $94,382 $94,382 $0 $89,397 -$4,985 $86,362 -$8,019 $82,155 -$12,227

Southern Mallee DC $8,814 $11,246 $3,343 $11,632 $3,729 $11,700 $3,797 $14,111 $6,208

Streaky Bay DC $9,705 $12,115 $3,260 $12,667 $3,812 $12,747 $3,891 $15,016 $6,161

Tatiara DC $15,835 $18,100 $2,244 $19,477 $3,621 $19,656 $3,800 $20,975 $5,119

Tea Tree Gully, City of

$94,382 $94,382 $0 $77,279 -$17,103 $78,427 -$15,955 $71,551 -$22,831

The Coorong DC $13,914 $16,224 $2,543 $17,559 $3,878 $17,712 $4,030 $19,297 $5,615

Tumby Bay DC $8,659 $11,094 $3,155 $11,468 $3,529 $11,539 $3,600 $13,967 $6,028

Unley, City of $50,316 $47,621 -$5,080 $50,095 -$2,606 $50,802 -$1,898 $47,765 -$4,935

Victor Harbor, City of $28,225 $26,054 -$1,424 $27,841 $363 $28,164 $686 $28,294 $815


$14,912 $17,199 $3,051 $18,656 $4,509 $18,829 $4,682 $20,256 $6,109


$12,292 $14,641 $2,732 $15,796 $3,887 $15,948 $4,039 $17,754 $5,845


$25,920 $23,804 -$2,038 $25,431 -$411 $25,704 -$137 $26,184 $343



Base Case


West Torrens, City of $75,168 $67,741 -$10,888 $70,638 -$7,991 $71,683 -$6,946 $65,741 -$12,888


$34,559 $32,238 -$3,492 $34,272 -$1,458 $34,710 -$1,019 $33,920 -$1,809

Wudinna DC $7,212 $9,681 $3,597 $9,759 $3,674 $9,803 $3,718 $12,472 $6,387

Yankalilla DC $13,702 $16,017 $2,640 $17,252 $3,874 $17,395 $4,018 $19,028 $5,651

Yorke Peninsula DC $28,191 $26,021 -$2,168 $27,499 -$690 $27,790 -$399 $27,994 -$195

8 Overview of Options

The modelling undertaken for this review for each of the four subscription options presented in the December 2015 report includes:

Maintaining the current three tiers based on voting entitlement. This essentially updatesthe options presented in the December 2015 report;

Using the Remuneration Tribunal SA categories as a general guide to five population steps; Modifying the above Remuneration Tribunal SA steps to reduce the step increments at

lower population levels while increasing the increments for councils greater than 70,000population;

Having one common flat component for all councils similar to other State Local GovernmentAssociations, with no population steps.

While it is difficult to provide a simple explanation of the way subscriptions change by type of council under each option, there are a number of observations that can be made to assist decisions on the best way forward. It should also be noted that it is possible to phase-in changes for any option.

8.1 Board decision (Base Case)

In terms of the Board decision to implement Option 1 of the December 2015 review, there will be variations in the changes to individual council subscriptions.

Councils less than 10,000 population generally will have increases averaging around $1,000 in the subscription. This is primarily the result of moving to 20% of total subscriptions being collected from the flat component (rather than 13%). For councils less than 10,000 population, the flat component will be $3,842 rather than $2,500 in the 2016/17 subscription. This is based on the total 2016/17 subscription levy and does not reflect any increases required for 2017/18. Councils above 20,000 population, other than those on the cap, generally have a reduction in subscriptions as a result of the increased contribution from smaller councils.

8.2 Modified Tier Options for Flat Component

To provide a comparison of how the modelled changes to the flat component impact on individual councils, Option 1 (retaining the 3 times cap) and Option 2 (eliminating the cap and using a declining stepped population and revenue approach) have been compared with the “base case”for each of the modelled flat component approaches.

Tables 8.1 and 8.2 provide details of the outcomes for these two options. These tables have councils ranked by population size.



8.2.1 Option 1 (Table 8.1) (maintaining 3 times cap)

Using the RTSA model (five tiers) results in a reduction in subscriptions of just under $1,000 for councils less than 4,000 population. However, councils from 4,000 to 10,000 face an increase of around $1,000 because of the increment (1.6) in the step in the RTSA remuneration approach. Councils in the 10,000 to 20,000 range receive a reduction of around $1,000.

By modifying the incremental increases in the five tiers (Modified RTSA), the small councils (<4,000) still receive a reduction of just under $1,000 relative to the base case while those in the 4,000 to 10,000 range have relatively small increases (around $100). Councils over 30,000 population (other than capped councils have an increase around $3,000.

Having one equal flat charge (no tiers)results in councils with a population less than 10,000 facing increases relative to the base case of up to $2,500 per year. Councils over 10,000 typically have a reduction of around $2,500 (apart from capped councils). However, there would be two less councils reaching the cap under this approach.

Table 8.1: Option 1 outcomes for each modelled flat charge approach (change is relative to base case)

Current Tiers (Base Case)

RTSA Model

change Modified RTSA

change No Tiers change

Orroroo / Carrieton DC $6,512 $5,643 -$869 $5,563 -$949 $8,998 $2,486


$6,945 $6,074 -$871 $6,000 -$945 $9,421 $2,476

Elliston DC $6,995 $6,124 -$871 $6,051 -$945 $9,470 $2,475

Kimba DC $6,777 $5,907 -$870 $5,830 -$947 $9,257 $2,480

Franklin Harbour DC $7,294 $6,422 -$872 $6,352 -$942 $9,762 $2,468

Wudinna DC $7,212 $6,340 -$872 $6,269 -$943 $9,681 $2,470

Robe DC $8,536 $7,660 -$876 $7,606 -$931 $10,974 $2,438


$7,409 $6,537 -$873 $6,469 -$941 $9,874 $2,465

Peterborough DC $7,538 $6,665 -$873 $6,598 -$940 $10,000 $2,462

Cleve DC $7,665 $6,791 -$873 $6,726 -$938 $10,123 $2,459

Coober Pedy DC $13,744 $12,850 -$895 $12,861 -$883 $16,059 $2,314

Southern Mallee DC $8,814 $7,937 -$877 $7,886 -$928 $11,246 $2,432

Streaky Bay DC $9,705 $8,824 -$881 $8,785 -$920 $12,115 $2,410

Kingston DC $8,297 $7,421 -$876 $7,364 -$933 $10,741 $2,444

Barunga West DC $8,136 $7,261 -$875 $7,201 -$934 $10,583 $2,448

Tumby Bay DC $8,659 $7,782 -$877 $7,729 -$929 $11,094 $2,435

Mount Remarkable DC $9,814 $8,933 -$881 $8,895 -$919 $12,221 $2,408


$6,876 $6,006 -$871 $5,931 -$946 $9,354 $2,478

Ceduna DC $11,396 $10,510 -$886 $10,491 -$905 $13,766 $2,370


$12,614 $13,752 $1,138 $12,702 $88 $14,955 $2,341

Northern Areas Council $11,684 $12,825 $1,141 $11,764 $80 $14,048 $2,363




RTSA Model




$14,588 $15,719 $1,131 $14,694 $106 $16,882 $2,294

Yankalilla DC $13,702 $14,836 $1,134 $13,800 $98 $16,017 $2,315


$16,189 $17,315 $1,125 $16,310 $121 $18,446 $2,256


$12,350 $13,489 $1,139 $12,436 $86 $14,698 $2,348

The Coorong DC $13,914 $15,047 $1,133 $14,014 $100 $16,224 $2,310

Tatiara DC $15,835 $16,961 $1,127 $15,952 $117 $18,100 $2,265


$14,912 $16,042 $1,130 $15,021 $109 $17,199 $2,287


$12,292 $13,431 $1,139 $12,378 $85 $14,641 $2,349

Grant DC $15,296 $16,424 $1,128 $15,408 $112 $17,573 $2,278

Mid Murray Council $19,200 $20,315 $1,115 $19,348 $148 $21,385 $2,185


$18,009 $19,128 $1,119 $18,146 $137 $20,222 $2,213

Mallala DC $13,706 $14,840 $1,134 $13,804 $98 $16,021 $2,315


$17,384 $18,505 $1,121 $17,516 $131 $19,612 $2,228

Renmark Paringa DC $15,171 $16,299 $1,129 $15,282 $111 $17,451 $2,281

Berri Bamera Council $21,897 $20,973 -$925 $21,716 -$181 $19,877 -$2,021

Yorke Peninsula DC $28,191 $27,245 -$946 $28,067 -$124 $26,021 -$2,170

Wattle Range Council $25,920 $24,982 -$939 $25,776 -$145 $23,804 -$2,116

Loxton Waikerie DC $24,460 $23,527 -$933 $24,302 -$158 $22,379 -$2,082

Copper Coast DC $28,084 $27,137 -$946 $27,958 -$125 $25,916 -$2,168

Port Augusta, City of $34,253 $33,286 -$968 $34,184 -$69 $31,939 -$2,314

Light Regional Council $25,238 $24,302 -$936 $25,087 -$151 $23,138 -$2,100

Port Lincoln, City of $24,436 $23,503 -$933 $24,278 -$158 $22,355 -$2,081

Victor Harbor, City of $28,225 $27,278 -$947 $28,101 -$124 $26,054 -$2,171


$28,586 $27,638 -$948 $28,465 -$121 $26,406 -$2,180


$35,945 $36,831 $886 $35,891 -$54 $33,591 -$2,354

Prospect, City of $29,737 $30,645 $908 $29,627 -$110 $27,530 -$2,207


$31,808 $32,709 $900 $31,717 -$91 $29,552 -$2,256


$34,559 $35,450 $891 $34,493 -$66 $32,238 -$2,321

Barossa Council $37,799 $38,678 $879 $37,761 -$37 $35,400 -$2,398

Adelaide, City of $94,382 $94,382 $0 $94,382 $0 $94,382 $0

Alexandrina Council $41,701 $42,566 $866 $41,699 -$2 $39,210 -$2,491




RTSA Model



Mount Gambier, City $34,078 $34,970 $892 $34,007 -$71 $31,768 -$2,310

Mount Barker DC $44,689 $45,544 $855 $47,987 $3,298 $42,127 -$2,562

Holdfast Bay, City of $56,691 $57,504 $814 $60,097 $3,407 $53,844 -$2,847


$47,521 $48,367 $846 $50,845 $3,324 $44,892 -$2,629

Unley, City of $50,316 $51,152 $836 $53,665 $3,349 $47,621 -$2,696

Adelaide Hills Council $48,478 $49,320 $842 $51,810 $3,332 $45,826 -$2,652

Burnside, City of $52,050 $52,880 $830 $55,414 $3,365 $49,313 -$2,737


$57,586 $56,535 -$1,050 $56,720 -$866 $50,576 -$7,010

West Torrens, City of $75,168 $74,057 -$1,112 $74,462 -$707 $67,741 -$7,427

Mitcham, City of $73,140 $72,035 -$1,105 $72,415 -$725 $65,761 -$7,379

Playford, City of $94,382 $94,382 $0 $94,382 $0 $92,166 -$2,216

Marion, City of $94,382 $94,382 $0 $94,382 $0 $89,233 -$5,149

Tea Tree Gully, City $94,382 $94,382 $0 $94,382 $0 $94,382 $0

Charles Sturt, City of $94,382 $94,382 $0 $94,382 $0 $94,382 $0


$94,382 $94,382 $0 $94,382 $0 $94,382 $0

Salisbury, City of $94,382 $94,382 $0 $94,382 $0 $94,382 $0

Onkaparinga, City of $94,382 $94,382 $0 $94,382 $0 $94,382 $0

8.2.2 Option 2 (Table 8.2) (eliminating the cap)

Under the current tier approach to the flat component, in this option there are generally small increases for councils under 4,000 population (averaging under $300). Councils between 4000 and 10,000 population have increases averaging around $1,000. The beneficiaries are most of the capped councils with some significant reductions.

Under the RTSA model, councils less than 4,000 have reductions while those in the 4,000 to 10,000 range have increases of around $2,000. Again, most of the capped councils have reductions.

The increases for the 4,000 to 10,000 range are moderated in the Modified RTSA approach while those in the 30,000 to 70,000 range have increases. Again, most currently capped councils have reductions.

With one flat charge (no tiers), councils less than 10,000 have increases in the $2,500 to $4,000 range.



Table 8.2: Option2 outcomes for modelled flat charge approaches (change relative to base case Table 8.1)

Current Tiers change

RTSA Model change

Modified RTSA change No Tiers change

Orroroo / Carrieton DC $6,489 -$23 $5,720 -$793 $5,584 -$928 $8,939 $2,427

Karoonda East Murray DC $6,994 $49 $6,225 -$721 $6,090 -$856 $9,444 $2,499

Elliston DC $7,053 $58 $6,284 -$711 $6,149 -$847 $9,503 $2,508

Kimba DC $6,802 $25 $6,032 -$745 $5,897 -$880 $9,252 $2,475

Franklin Harbour DC $7,403 $109 $6,634 -$660 $6,499 -$796 $9,853 $2,559

Wudinna DC $7,309 $97 $6,540 -$672 $6,405 -$807 $9,759 $2,547

Robe DC $8,845 $309 $8,075 -$461 $7,940 -$596 $11,295 $2,759

Flinders Ranges Council $7,546 $137 $6,776 -$633 $6,641 -$768 $9,996 $2,587

Peterborough DC $7,696 $158 $6,927 -$611 $6,792 -$746 $10,146 $2,608

Cleve DC $7,846 $181 $7,076 -$588 $6,941 -$723 $10,296 $2,631

Coober Pedy DC $14,465 $720 $13,695 -$49 $13,560 -$184 $16,915 $3,171

Southern Mallee DC $9,182 $368 $8,412 -$402 $8,277 -$537 $11,632 $2,818

Streaky Bay DC $10,217 $512 $9,448 -$257 $9,313 -$392 $12,667 $2,962

Kingston DC $8,591 $295 $7,822 -$475 $7,687 -$610 $11,041 $2,745

Barunga West DC $8,407 $271 $7,637 -$498 $7,502 -$634 $10,857 $2,721

Tumby Bay DC $9,018 $359 $8,248 -$411 $8,113 -$546 $11,468 $2,809

Mount Remarkable DC $10,356 $542 $9,587 -$227 $9,451 -$362 $12,806 $2,993

Anangu Pitjantjatjara Yunta $6,959 $83 $6,190 -$687 $6,054 -$822 $9,409 $2,533

Ceduna DC $12,210 $814 $11,441 $45 $11,305 -$91 $14,660 $3,264

Goyder Regional Council $13,632 $1,018 $14,706 $2,092 $13,609 $995 $16,082 $3,468

Northern Areas Council $12,563 $879 $13,637 $1,953 $12,540 $855 $15,013 $3,329

Kangaroo Island Council $15,610 $1,022 $16,684 $2,096 $15,587 $999 $18,060 $3,472

Yankalilla DC $14,802 $1,100 $15,876 $2,174 $14,778 $1,077 $17,252 $3,550

Roxby Downs, Municipal Council $17,153 $964 $18,227 $2,038 $17,129 $940 $19,603 $3,414

Lower Eyre Peninsula DC $13,348 $998 $14,422 $2,072 $13,325 $975 $15,798 $3,448

The Coorong DC $15,109 $1,195 $16,183 $2,270 $15,086 $1,172 $17,559 $3,646

Tatiara DC $17,027 $1,192 $18,101 $2,266 $17,003 $1,168 $19,477 $3,642

Wakefield Regional Council $16,206 $1,294 $17,280 $2,368 $16,182 $1,270 $18,656 $3,744

Walkerville, Corp of the Town $13,346 $1,054 $14,420 $2,128 $13,323 $1,031 $15,796 $3,504




RTSA Model change


Grant DC $16,736 $1,440 $17,810 $2,514 $16,713 $1,417 $19,186 $3,890

Mid Murray Council $20,350 $1,150 $21,424 $2,224 $20,326 $1,126 $22,800 $3,600

Naracoorte Lucindale Council $19,267 $1,258 $20,341 $2,332 $19,243 $1,234 $21,717 $3,708

Mallala DC $15,008 $1,303 $16,082 $2,377 $14,985 $1,279 $17,458 $3,753

Clare & Gilbert Valleys Council $18,775 $1,391 $19,849 $2,465 $18,752 $1,368 $21,225 $3,841

Renmark Paringa DC $16,715 $1,544 $17,789 $2,618 $16,691 $1,521 $19,165 $3,994

Berri Bamera Council $23,022 $1,125 $22,251 $354 $22,681 $784 $21,630 -$267

Yorke Peninsula DC $28,891 $700 $28,120 -$71 $28,551 $359 $27,499 -$693

Wattle Range Council $26,823 $902 $26,052 $131 $26,482 $562 $25,431 -$490

Loxton Waikerie DC $25,472 $1,011 $24,701 $241 $25,131 $671 $24,080 -$381

Copper Coast DC $29,023 $940 $28,252 $169 $28,683 $599 $27,631 -$452

Port Augusta, City $34,763 $510 $33,992 -$261 $34,422 $169 $33,371 -$882

Light Regional Council $26,445 $1,207 $25,674 $436 $26,104 $866 $25,053 -$185

Port Lincoln, City of $25,714 $1,277 $24,943 $506 $25,373 $937 $24,322 -$115

Victor Harbor, City $29,233 $1,008 $28,462 $237 $28,893 $668 $27,841 -$384

Port Pirie Regional Council $29,745 $1,159 $28,974 $388 $29,404 $819 $28,353 -$233

Murray Bridge, Rural City of $36,812 $867 $37,731 $1,786 $36,472 $526 $35,420 -$525

Prospect, City of $31,101 $1,364 $32,020 $2,283 $30,761 $1,023 $29,709 -$28

Gawler, Corp of the Town $33,108 $1,299 $34,027 $2,218 $32,767 $959 $31,716 -$93

Whyalla, Corp of the City $35,664 $1,105 $36,583 $2,024 $35,323 $764 $34,272 -$287

Barossa Council $38,687 $889 $39,606 $1,808 $38,347 $548 $37,295 -$503

Adelaide, City of $81,141 -$13,241 $82,060 -$12,322 $80,800 -$13,582 $79,749 -$14,633

Alexandrina Council $42,474 $773 $43,393 $1,692 $42,133 $433 $41,082 -$619

Mount Gambier, City of $35,488 $1,410 $36,407 $2,329 $35,147 $1,069 $34,096 $18

Mount Barker DC $45,772 $1,083 $46,691 $2,002 $48,369 $3,680 $44,380 -$309

Holdfast Bay, City of $57,231 $540 $58,150 $1,459 $59,827 $3,137 $55,838 -$852

Norwood Payneham & St Peters, City of $48,752 $1,231 $49,671 $2,150 $51,349 $3,828 $47,360 -$161

Unley, City of $51,487 $1,170 $52,406 $2,089 $54,084 $3,767 $50,095 -$222

Adelaide Hills Council $49,839 $1,361 $50,758 $2,280 $52,436 $3,957 $48,447 -$31

Burnside, City of $53,519 $1,469 $54,438 $2,388 $56,116 $4,066 $52,127 $77

Campbelltown City Council $59,072 $1,486 $58,300 $714 $57,827 $241 $53,838 -$3,748

West Torrens, City $75,873 $704 $75,100 -$68 $74,627 -$541 $70,638 -$4,530

Mitcham, City of $68,898 -$4,242 $68,125 -$5,015 $67,652 -$5,487 $63,663 -$9,476




RTSA Model change


Playford, City of $81,376 -$13,006 $80,603 -$13,779 $83,068 -$11,314 $76,141 -$18,240

Marion, City of $80,094 -$14,288 $79,321 -$15,061 $81,786 -$12,596 $74,859 -$19,522

Tea Tree Gully, City $82,513 -$11,869 $81,740 -$12,641 $84,205 -$10,177 $77,279 -$17,103

Charles Sturt, City $90,664 -$3,718 $89,892 -$4,490 $92,356 -$2,025 $85,430 -$8,952

Port Adelaide Enfield, City of $91,443 -$2,939 $90,670 -$3,711 $93,135 -$1,247 $86,208 -$8,173

Salisbury, City of $94,631 $249 $93,859 -$523 $96,324 $1,942 $89,397 -$4,985

Onkaparinga, City of $106,981 $12,599 $106,209 $11,827 $108,673 $14,291 $101,747 $7,365

As can be seen from the analysis undertaken for this report, a change from the current population tiers could be used to achieve a range of different outcomes. The key to this is the increments adopted for increases to the flat component in each tier. As additional tiers are added, flexibility to change the step increments increases. There are numerous variations in tier steps that could be modelled. However, it is considered that the tier models analysed provide sufficient information to assist decision making.

However, as noted earlier, the use of tiers for the flat component does not completely conform with the principle that some services have a fixed benefit to all members, irrespective of population or revenue base as the flat component in each tier takes into account the population base of the council (which is then again considered in the 40% distribution of the balance of subscriptions).

It is noted that the May 2016 Board decision refers to the population bands used in the subscription formula and their application to voting rights.

While some State Associations use population tiers to determine member voting entitlements, they do not use these tiers in their subscription formula. For example, Local Government NSW has seven voting tiers as shown below which results in a greater weighting in vote numbers for larger councils (1 to 7 range) than is the case in South Australia (1 to 3 range).

LG NSW Voting Entitlement Population Voting Number

Up to 10,000 1

10,001 - 20,000 2

20,001 - 50,000 3

50,001 - 100,000 4

100,001 - 150,000 5

Over 150,000 7

In other Associations (eg LGAQ), the subscription calculated is used to determine voting entitlements of councils (a stakeholder approach). Vote numbers increase in steps from a minimum of 2 to a maximum of 14 (an effective 1 to 7 range).

In the five tier population tiers used in some models analysed in this reports, it would be possible to set increments based on votes but this would potentially require a change to current voting entitlements to a range of 1 to 5 votes. Further consideration of voting options is not part of this report.



Appendix A -Options using current 3 Tiers for Flat Component

Options 1, 2 and 3 have a flat amount to collect 20% of subscriptions.

Population >= Flat Fee

1 $3,842

10001 $7,684

50001 $11,526

Option 4 collects 30% of subscriptions as flat amount (see below).

All options maintain the 40% population and 60% revenue weighting for the balance of subscriptions.

All options use a three year average revenue.

Option 1

Maintains the 3 times average cap.

Option 2: Population and Revenue Bands for 40%/60% weighting of balance

Population > Rate/capita Revenue > $000

Rate/’000

0 $0.54877 0 $0.66507

10000 $0.49389 12000 $0.53205

50000 $0.14817 60000 $0.23942

20% flat



Rate/’000

0 $0.56183 0 $0.67156

10000 $0.50565 12000 $0.53724

50000 $0.15169 60000 $0.24176

100000 $0.03792 120000 $0.10879

20% flat





Rate/’000

0 $0.48017 0 $0.58193

10000 $0.43216 12000 $0.46555

50000 $0.12965 60000 $0.20950

30% flat


1 $5,763

10001 $11,526

50001 $17,289



Appendix B –Remuneration Tribunal SA Based Options

Options 1, 2 and 3 with 20% as flat amount in five tiers:


1 $3,073

4001 $4,916

10001 $6,913

20001 $8,603

50001 $10,754

Option 1




Rate/capita

0 $0.54877 0 $0.66507

10000 $0.49389 12000 $0.53205

50000 $0.14817 60000 $0.23942

20% flat



Rate/’000

0 $0.56183 0 $0.67156

10000 $0.50565 12000 $0.53724

50000 $0.15169 60000 $0.24176

100000 $0.03792 120000 $0.10879

20% flat





Rate/’000

0 $0.48017 0 $0.58193

10000 $0.43216 12000 $0.46555

50000 $0.12965 60000 $0.20950

30% flat


1 $4,609

4001 $7,374

10001 $10,370

20001 $12,905

50001 $16,131



Appendix C –Remuneration Tribunal SA Modified Tiers Options

Options 1, 2 and 3 with 20% as flat amount in five tiers:


1 $2,937

4001 $3,819

10001 $7,344

30001 $10,281

70001 $13,219

Option 1




Rate/capita

0 0.54877 0 0.66507

10000 0.49389 12000 0.53205

50000 0.14817 60000 0.23942

20% flat



Rate/’000

0 0.56183 0 0.67156

10000 0.50565 12000 0.53724

50000 0.15169 60000 0.24176

100000 0.03792 120000 0.10879

20% flat





Rate/’000

0 $0.48017 0 $0.58193

10000 $0.43216 12000 $0.46555

50000 $0.12965 60000 $0.20950

30% flat


1 $4,406

4001 $5,728

10001 $11,015

30001 $15,422

70001 $19,828



Appendix D – One Flat charge Option – No Tiers

Options 1, 2 and 3 with one Flat Charge of $6,292 per council collecting 20% of subscription total.

Option 4 with one Flat Charge of $9,438 per council collecting 30% of subscription total.

Option 1




Rate/capita

0 0.54877 0 0.66507

10000 0.49389 12000 0.53205

50000 0.14817 60000 0.23942

20% flat



Rate/’000

0 0.56183 0 0.67156

10000 0.50565 12000 0.53724

50000 0.15169 60000 0.24176

100000 0.03792 120000 0.10879

20% flat



Rate/’000

0 $0.48017 0 $0.58193

10000 $0.43216 12000 $0.46555

50000 $0.12965 60000 $0.20950


148 Frome St

Adelaide SA 5000

GPO Box 2693

Adelaide SA 5001

T (08) 8224 2000

F (08) 8232 6336

E [email protected]



7.10 Draft 2017/18 LGA Annual Business Plan and Budget



Andrew Wroniak, Director Corporate Services




ECM: 650446 Attachments: 650199, 650103, 650200, 650494, 649245, 650206, 647559

Recommendation That the LGA Board adopts

a. the draft 2017/18 LGA Annual Business Plan;

b. the draft 2017/18 LGA Budget incorporating:

i. an increase to member subscriptions revenue of 2.5%;

ii. $70,000 for the LGA election strategy; and

iii. $230,000 to escalate development of the LGA’s commercialactivities.

Executive Summary This report presents a Draft LGA Annual Business Plan and Budget 2017/2018 (Draft ABP&B) which has been prepared based on consultation with member councils in terms of priorities, the advice of Secretariat staff in terms of resource requirements and feedback from both the Board’s Executive Committee and Audit Committee.

Some observations in relation to the Draft ABP&B include:

- For 2017/2018, an ambitious agenda has been outlined. High level priorities havebeen identified by the Executive Committee including facilitating awarenesscampaigns, influencing State policy outcomes, delivering an LGA 2018 State ElectionPlatform, preparing for the 2018 local government elections process, working onsector conduct and building sector morale, implementing the outcomes of theschemes’ and governance reviews, and improving / exploring commercialopportunities including in the areas of procurement and public lighting. All of theseitems are complex, resource intensive but will contribute positively to the sector andto the LGA value proposition.



- In delivering on the above priorities, and continuing to deliver improved value formember councils, the following are crucial:

o The capacity of the LGA needs to be built via the Secretariat to positivelyposition local government in the lead up to what is shaping as a watershedstate election for the sector. It will also benefit the organisation for futureactivities, including preparations for the 2018 local government elections.

o Escalating the development of LGA commercial activities. This is paramountif the LGA is to continue to advance the sector through initiatives such asaggregated procurement and shared services. It is also an important futurecontributor to the LGA’s financial sustainability as raising additional revenuefrom increased commercial activities will allow for more investment in deliveryof expanded services, research and innovation, as well as reduce reliance onsubscription fees. Better practice interstate LGAs are deriving more revenuethrough aggregating spend and through more developed commercialactivities.

o The capacity of the LGA also needs to be built in terms of improving internalmanagement systems, which will in turn contribute to increasing theAssociation’s value proposition to members. In this area of improvement, wewill bundle work on maintaining the LGA’s assessment of our valueproposition for existing and new services; as well as improving systems ofinternal control and performance monitoring and reporting – all aligned withthe LGA Strategic Plan and annual priorities.

- The draft 2017/2018 budget is forecasting an operating surplus of $3.916 millioncomprising a deficit of $6,000 from Secretariat operating activities, and a surplus of$3.923 million from project activities with the main influence being the State LocalGovernment Infrastructure program and the Community Wastewater ManagementScheme. This does not include provision for the identified new initiatives described inthe above 3 points.

- Balancing budget pressures with building the necessary LGA capacity as outlinedabove and financial sustainability objectives has been instrumental in developing the2017/2018 budget. The Audit Committee’s previous feedback seeking thedevelopment of a strategic alignment between the LGA’s Strategic Plan, AnnualBusiness Plan, Budget and Long Term Financial Plan is being progressed over thecoming months with the commencement of the LGA’s Director Corporate Services.In the meantime, the Board’s consideration of the initiatives to build capacity issought.

Discussion The LGA is progressing towards an integrated and aligned planning process, ensuring that the Association’s Strategic Plan 2016-2020 is translated in to action via annual priorities and appropriate financial strategies. The LGA’s suite of strategic management plans include:

- 2016-2020 Strategic Plan- Long Term Financial Plan- Asset Management Plan (to be developed)- Annual Business Plan and Budget (ABP&B)

The recent report ‘LGA Value of Membership’ prepared by UHY Haines Norton (March 2017) highlights that the average annual benefit to councils of LGA services accessible to all councils is $1.55m per annum.



The Report also highlights:

“In South Australia, a strong LGA is important in providing a single voice to State Government instead of 68 individual voices and enabling the State Government to see the LGA and the Local Government sector as a partner while providing services and representation to members”.

The LGA’s strategic management framework must be aligned to creating, improving and delivering value for member councils.

Within the above framework, the purpose of this report is to present a draft 2017/18 ABP&B to the Board for adoption. Items presented include:

- Council member feedback, and external and internal influences

- Identified annual priorities

- Relevant key performance indicators

- Board and organisational development opportunities

- Assumptions used in the development of the 2017/2018 budget including subscriptionfee increase, salaries, borrowings and interest expenses, rental income

- Other initiatives to be considered for inclusion in the ABP&B from both operating andcapital perspectives.

Each of these elements are important contributors to increasing the ongoing value of LGA services to councils.

To assist with the Committee’s discussion, this report follows the structure of the attached (Appendix 1) draft 2017/2018 LGA Annual Business Plan – Summary and includes details of:

- Member expectations / feedback and significant external and internal influences

- Draft annual priorities based on feedback from the LGA’s Executive Committee andAudit Committee, members and a review of external and internal influences

- Details about LGA led R & D projects recommended for funding by the R & DScheme Advisory Committee in 2017/2018

- Key execution (operational) requirements for the Secretariat

- Board and Secretariat development priorities

- Draft 2017/2018 Annual Budget information / assumptions outlining financial andoperational aspects of the LGA operations for 2017/18

- A series of new initiatives not currently included in the draft 2017/2018 Annual Budgetfor the Board’s consideration

Member Expectations / Feedback and Significant Influences

Council Member Survey Report

The LGA is committed to ensuring it meets the needs of member councils and to assist in this process, members were invited to complete an inaugural member survey during February / March 2017. This survey will now be conducted on an annual basis as input to the LGA’s planning processes and other service delivery initiatives.



The full Survey outcomes are provided at Appendix 2. In summary, the top ten areas member councils are saying the LGA’s priorities over the next 2-6 years should be focussed on are:

1. Rate capping policy issues2. Asset management / infrastructure / capital investment / grants3. Economy / industry4. Revenue / financial sustainability5. Legislation / compliance6. Shared services7. Community engagement / expectations8. Planning / urban development9. Benchmarking / service reviews / business analytics10. Waste policy issues

From a service perspective, the following areas were ranked as the top three important to extremely important services:

1. Advocacy / lobbying2. Elections3. LGA Insurance & Indemnity Schemes4. Advice regarding legal issues / governance5. Research and development6. Procurement / shared services7. Financial sustainability resources8. Training for council members and staff9. Workforce, human resources, industrial relations10. Emergency management

The above items have been included in the summary ABP attached this report at Appendix 1.

External and Internal Influences

In terms of significant influences on the sector’s and LGA’s operating environments, the following factors have been taken in to account in the development of the annual priorities:

External Environment:

- rate capping discussions and the efficiency of local government increasing costs; costshifting, collecting state taxes and the sustainability and costs of electricity supply

- public lighting and opportunities for consolidation of lighting infrastructure to roll outLED and smart cities technology

- local government reform including planning reform, boundary adjustments andregionalization, financial management and the sector’s social license to operate

- funding for local government; infrastructure, community services, disaster mitigation

- Federal agenda; smart cities, innovation, RDA review, City Deals, value capture

- environment; extreme weather events, emergency response and recovery though theState Emergency Management Plan, stormwater and coastal management issuesand funding

- SA's economic outlook; regional economic development including population,procurement

- metropolitan and regional opportunities and challenges



- council efficacy, code of conduct, values and behavior, sector morale

- 2018 State Government election

- 2018 Local Government elections

- Possible early federal election

In noting the above factors, the Executive Committee highlighted sector conduct and morale as being a priority matter for attention. This has been included in the annual priorities.

Internal Environment:

- governance review: incorporating a contemporary, streamlined efficient governancestructure

- Schemes' Review outcomes and the implementation of modernized governancearrangements

- the need for better internal governance controls for efficient and effective LGAoperations

- resourcing levels and structural changes including structures delivering commercialservices to members

- revenue streams: subscriptions, grants, commercial including a reduction in buildingincome returns

- estimated grant revenues and the project reserve balance

- Memorandum of Understanding with LGA Queensland to explore joint commercialactivities and address the need for other commercial / fee for service activities

- LGA Procurement as a sustainable and profitable commercial offering of LGASA

- LGA value proposition: customer service; business analytics and benchmarking;return on investment

- Attraction and retention of staff

Draft Annual Priorities

Based on an assessment of both member and LGA Secretariat operating environments, the following Annual Priorities have been identified, and are aligned with the key initiatives and strategies outlined in the Strategic Plan 2016-2020.

Positioning local government and maintaining effective partnerships andrelationships through stakeholder engagement, advocacy and lobbying. Thecontinued development of stakeholder relations through a multifaceted public affairsstrategy is the key activities within this area of work. Tools such as a relationshipmanagement database, implementing the LGA communications plan including socialmedia, sector wide campaigns, and data for decision making will be important toachieving greater influence for local government in matters affecting councils andcommunities. Surveys of members, stakeholders and the community will continue,together with the development of other measures to test if local government’s profileis being enhanced and community support and engagement is mobilised.

Positioning and supporting local government as a driver of economicdevelopment. This activity will occur under the umbrella of the LGA’s Future TownsFuture Cities theme, which includes a focus on technology and ‘smart communities’,City Deals and other infrastructure funding mechanism, streamlining regulation andpromoting best practice in leadership, governance and operations. Jobs and growth,



particularly in regional areas will be a key plank in the LGA’s advocacy platform; with a focus on population policy, energy, procurement, liquor licensing, planning, cost shifting, funding mechanisms and partnerships.

Supporting councils to build healthy and resilient communities. Key activities inthis area will include working with relevant agencies to develop plans, policies andprotocols for responses to extreme weather events, establishing a CommunityWellbeing Alliance with SA Health and other state government agencies and sectorengagement on major planning policy documents. Work will also continue on theimplementation of the LGA Ageing Strategy.

Legislation and achieving local government reform. Local government in SouthAustralia has a history of and welcomes reform that in turn benefits communities andcreate public value. This area of focus will include a focus on sector behaviour andmorale, systems and codes of conduct, introducing benchmarking and service reviewprocesses for the sector, implementing the Planning, Development and InfrastructureAct and Local Nuisance Act, amendments to the Local Government (Elections) Actand reviewing the LGA Policy Manual. Preparations for the 2018 Local GovernmentElections will commence. This priority will also need to respond to external calls forreform particularly in the areas of industrial relations, procurement, rate capping,amalgamations, and accelerated boundary reform.

Financial sustainability. This activity includes an evidence based campaign forgreater financial autonomy for councils. The cornerstone of this work is the RatesAwareness Campaign to inform and educate the community about the value ofcouncil services and how this would be impacted by rate capping. This work willfollow on from current advocacy work opposing cost shifting and tax collection for theState such as on the NRM levy, rate capping, community housing rebates, rubbleroyalties and the waste levy. Financial sustainability will cross over several annualpriorities and will be a key plank in the LGA State Election Platform.

Building local government capacity and the skills of our people. This area ofwork will advance a strategic and flexible delivery of learning and development acrossthe sector for both elected members and staff. It will continue an expanded regionalyouth training program, and implement local government’s functional support role inemergency management. A renewal of arrangements with the State Government forthe continued delivery of Community Waste Water Management Schemes will beprogressed as will the establishment of greater service aggregation across the sectorin procurement and other service areas.

Implementing improved LGA governance arrangements and commercialactivities. The LGA’s significant reform program will continue throughout 2017/18with the LG Schemes Review and LGA Governance Review both moving into theirimplementation phases. The LGA Secretariat internal governance & efficiencyimprovements will be progressed through the implementation of a long term financialplan that is aligned to the LGA’s strategic plan. The refinement of subsidiarycommercial structures will continue to be explored with a focus on procurement andnew arrangements for public lighting, which over time will subsidise advocacy andmember services. The LGA Secretariat’s structure and internal capability will continueto be developed with structured organisational culture and training and developmentprograms being implemented.



From the above priorities, the LGA Executive Committee highlighted the following matters for attention in 2017/2018:

- Energy Policy- Schemes Review- Governance Review- Procurement- Awareness campaigns including the State and local government elections- Commercial activities- LG House – forward planning

These matters have been incorporated in the attached Summary, and will be drawn out further in the full version of the 2017/2018 Annual Business Plan.

Research & Development Funded Projects

The Local Government Research & Development Scheme (LGR&DS) Committee met on Friday 7 April 2017 to consider project proposals under the 2017 LGR&DS internal round of funding. The internal round of funding relates to projects identified by the LGA, rather than projects identified by councils or other external parties with an interest in local government.

The recommended projects are presented to the May 2017 Board meeting for approval. It is also appropriate that the projects be highlighted as part of the LGA’s ABP&B process as they contribute resources to delivering against the LGA’s annual priorities. Refer to Appendix 3 for a list of projects recommended for funding under the LGR&DS for 2017/2018. Refer to Appendix 4 for a list of projects continuing from previous year’s grant funding (note that thislist includes projects from all sources of grant funding).

In this regard, it is noted that:

- The LGR&DS Annual Business Plan complements the LGA Strategic Plan. TheLGR&DS Plan sets the priorities for the R&D Scheme which given its statutorynature, can focus on a wider range of priorities than the LGA. Both the LGA and theLGR&DS are aligned with both their purpose being to benefit local government.

- The process of identifying the LGR&DS internal project proposals included making acall to LGA staff to put forward ideas for funding, which were to be aligned to the LGAStrategic Plan, as well as the LGR&DS Annual Business Plan.

- From this call, the total value of ideas received from staff exceeded the availableLGR&DS funds, so an internal (Secretariat) prioritisation process was undertakenbased on alignment with the 2017 LGA Member Survey and draft LGA annualpriorities for 2017/2018.

- The total funding from the LGR&DS for 2017/2018 is $2.298 million which isaccounted separately within the budget under LGA Grant / R & D Funded Projects.Note that the total LGA Grant / R&D Funded Projects income for 17/18 is$38.388 million which includes funds from the State Local Government InfrastructurePartnership, CWMS and the Regional Youth Traineeship Program.

In addition to the above, at their meeting on 7 April 2017, the LGR&DS Committee highly recommended that the National Disability Insurance Scheme (NDIS) is a critical matter for the LGA’s attention. The NDIS was also the subject of a Notice of Motion at the April 2017 Ordinary General Meeting. These recommendations should be taken in to account when reviewing the LGA’s annual priorities.



Execution

‘Our Finances’: A detailed examination of the 2017/18 financials is provided later in this report including a draft 2017/2018 Annual Budget Summary.

‘Our People’: resourcing levels have not been changed in our base line plan, remaining consistent at 41 full time equivalent staff. This compares with 41 FTE in the 2016/17 year and includes 8 grant externally funded contract positions. These staffing levels have been maintained whilst also providing for the succession of the Director Legislation, who will be retiring in March 2018. Note that at this stage, provision for the two new positions relating to the state election strategy, and an escalation of commercial activities have not been made at this time but the Secretariat is seeking endorsement for these two positions from the Board. There are also no provisions for a resource focused on improving internal management systems but the Secretariat will look to fund this by continuing to look for efficiencies and savings in current operations.

‘Staff training & development’: A review of the Secretariat’s internal environment has identified some key staff training and development needs, which will be delivered during the year. Such continuous professional development will underpin high levels of performance and success. The areas of focus are:

- Project management- Customer service- Government relations and stakeholder engagement- Governance, financial management, commercial acumen- Strategic thinking

‘Measuring our Delivery’: It is intended that the key performance indicators adopted by the Board will be cascaded to the CEO and then all work areas within the Secretariat as appropriate to ensure performance management across the organisation is aligned with the Board’s strategic directions. The headline KPI themes outlined below have been reviewed by the LGA Executive Committee and Audit Committee:

- Delivery of key imperatives:a. Awareness campaignb. State election platform and local government election campaignc. Schemes Reviewd. Governance Review

- Progress of resolutions from meetings of Members, the Board, Board Committees

- Maintaining financial sustainability

- Increase in member satisfaction

- Increase in member value

- Increase in commercial returns / reduction in reliance on subscription fees

- Strength of organisational culture

Following the Board’s adoption of the suite of KPI themes, measurable targets will be set and a performance reporting cycle implemented, aligned to quarterly budget reviews and annual reporting to the Board and Member councils. It is intended that the Audit Committee will review performance reports prior to their presentation to the Board with a focus on financial sustainability.



Board & Organisational Development

Leadership, culture and continuous improvement are key contributors to success. Accordingly, the draft 2017/18 Annual Business Plan provides for the LGA’s focus in theseimportant areas from both a Board and Secretariat perspective.

Discussion was held on various aspects of values and behaviours at the Board’s induction session in January 2017. The feedback from this session has informed the development of items within this area of focus as have the outcomes of the Secretariat’s ‘culture survey’ undertaken in December 2016. Note that ‘reviewing performance’ has been included as a key focus area to contribute to culture. This will include the development of a Board evaluation tool.

Draft 2017/18 Budget

Each year an Annual Budget is set to identify the financial requirements of LGA’s operations for the next financial year. The member subscriptions are set after consideration of the proposed annual budget and the need to ensure financial sustainability.

For the first time, in 2016/17 a zero based budget approach to income and expenditure was taken, which resulted in a high degree of confidence in the information presented. This approach was continued in the development of the draft 2017/2018 budget.

A summary of the draft budget for 2017/18 is attached at Appendix 5.

Summary

In 2017/18, the LGA is expecting an operating surplus of $3.916 million comprising a surplus of $3.922 million from Projects and a small deficit of $6,000 from Secretariat operating activities.

The Secretariat operating deficit is made up of:

Total Income $7,771,000

less

Employee Costs $3,716,000

Depreciation $755,000

Finance Costs $80,000

Operating Expenditure $3,226,000

Surplus/(Deficit) before Projects ($6,000)

Commentary on major factors contributing to this outcome is provided below in the ‘Budget Narrative’.

Risks in achieving the budget

Achieving the budget is dependent on the following risks:

- Payroll Tax Exemption - The budget includes an assumption that the LGA will besuccessful in its application to the State Government to be exempt from payroll tax.This provides a saving of $156,000 in 2017-18. There are strong grounds for thisexemption given both the South Australian State Government and Local Governmentare exempt and a precedent has been set with Local Government Association ofQueensland applying for, and being granted an exemption from this tax in their state.



On the basis of this, the Secretariat believes this budget assumption is very low risk and recommends it be retained.

LG House–The budgeted figures for 2017-18 include a reduction to rental incomefollowing a renegotiation of the lease with the Office of the Fair Work Ombudsman(FWO) in light of extremely high vacancy rates in the CBD. The new lease will bepresented to the LGA Executive Committee for their consideration at the Junemeeting. Whilst the impact on the budget for 2017-18 is known, in the long termbuilding ownership presents additional risks to the LGA’s ongoing finances. The AuditCommittee has requested that the LGA’s ownership of the building be reviewed in2017-18 to ensure it remains a viable investment. Note that the building has recentlybeen valued at $21.2m, which is up from the $17.6m purchase price in late 2009.

In addition to the above, the budget assumptions have also been conservative in thatno rental income has been factored for the portion of level 3 that will be vacated byFWO in October 2017. Tenancy options will be progressed over the coming monthswith the objective of achieving full occupancy. Opportunity therefore exists that rentalincome may be greater than forecast. It is prudent however that any change in thisregard be factored in to the budget during budget review processes and when greatercertainty can be provided.

Interest Expense – Managing cash flow is important to maintaining a low interestexpense in 2017-18. Seven years ago the LGA established a loan facility with theLocal Government Financing Authority when it purchased Local Government House.This facility has remained unused as the cash has been available from projects tosupport the LGA’s activities. In 2017-18 the LGA has budgeted for $2.5 million to bedrawn down towards the end of financial year resulting in a budgeted interestexpense of $80,000. This expense has been forecast on the basis of project fundsremaining available for cash-flow purposes. The risk of project funds not beingavailable for this purpose is low, and accordingly the provision for $80,000 interestexpense is recommended to be retained.

LGA Procurement – no provision has been made in the LGA secretariat budget forthe re-imbursement of LGA Procurement costs as has been made over the last 2years. Nor has any provision been made for a return to the LGA of any dividend fromLGA Procurement. Assessment of the current LGA Procurement transformationstrategy and associated long term financial plan shows that the organisation is turningaround the previous decline, and is now able to entirely fund its own activities.Furthermore, there is a high degree of confidence that LGA Procurement will be in aposition to provide a return to the LGA on its investment by 2019-20.

Assumptions

Assumptions used in the preparation of the draft budget are detailed below.

- Subscription fees revenue $54,000 increase. This has been included based on a2.5% increase as requested by the Executive Committee. This increase is consistentwith rate increases being considered by councils, which of the sample councilsqueried ranged from 2.5% to 5%. Modelling of different percentage increases to LGAsubscription fees is provided in the following table.



% Increase in Subscriptions

$ Value of Increase

1.5% $32,599

2% $43,466

2.5% $54,332

3% $65,198

3.5% $76,065

- Salaries increase by 2% This is comparable with councils surveyed which haveallowed for 2-3% increases based on enterprise agreements and award increases. Italso compares with the March 2017 quarter CPI (2%) which is a reasonable basisfrom which to determine salary increases.

- Board allowances increased by CPI based on Board policy At the January 2017meeting, the Board resolved to review Board Member allowances in comparison toother local government jurisdictions, including relativity to elected member allowancesin those jurisdictions. This review has been undertaken with relevant data beingprovided at Appendix 8. As will be noted, the review has shown that LGA SAallowances are below other states, and are worthy of being further reviewed havingregard to the different LGA structures, roles and responsibilities. It is recommendedthat this review be undertaken by an independent person, with the outcomes to beconsidered as part of the first budget review.

Budget Narrative

The following budget narrative has been split into two sections: LGA Secretariat and LGA Grant/R&D Funded Projects.

LGA Secretariat

The Secretariat is budgeting a deficit of $6k in 2017/18, which is a $22k unfavourable variance to 2016/17 budget due to the following major variances:

- $314k unfavourable variance resulting from a decrease in rental income fromLG House. This variance has resulted from an anticipated change to the tenancyarrangements with the Office of the Fair Work Ombudsman (FWO). The currentFWO lease expires in October 2017, and a new 10-year lease is now beingproposed, to be considered by either the Executive Committee or Board inJune/July. The new lease sees the FWO gaining a rental incentive for the 10-year lease as well as vacating part of its current lease. Both factors havecontributed to the reduction in rental income. A conservative approach has beentaken in the budget by not providing for rental income for the vacant portion of thebuilding for 8 months of the year.

The building has recently been valued at $21.2m by Maloney Field Services.Data concerning building occupancy rates and values have also been obtained,and the lease proposal achieved with FWO is consistent with the current market.Further analysis is currently being undertaken regarding the benefits of owningthe building as requested by the Audit Committee. This will be presented to theAudit Committee and Board as part of the LGA’s long term financial planning overthe coming months.



- $136k favourable variance in Legal Costs due to the specific legal advice beingrequired in 2016/17 and not in 2017/18.

- $156K favourable variance – Payroll Tax exemption in anticipation of the LGA’ssuccessful application to the State Government.

LGA Grant/R&D Funded Projects

Project budget for 2017/18 includes $38.388 million of revenue offset by $34.465 million of expenditure resulting in a net surplus of $3.923 million due to the following major activities:

- State Local Government Infrastructure Partnership program – Project incomeincludes the recognition of $30 million of revenue from the State Government forthe Infrastructure Partnerships program. This program is encouraging Council’s tobring forward capital expenditure and has a condition that projects mustcommence by December 2017. The State Government will provide the LGA $3million each year over 10 years to fund this program.

- R&D projects – Refer to previous commentary

- The Community Wastewater Management System project will continue into2017/18 following the recent announcement from the State Government ofanother 10-year program of funding. The LGA is forecasting that $1 million will becarried over into next financial year. New grant income of $4.2 million is budgetedfor in 2017/18 and expenditure of $2.7 million.

Funded Capital projects

- Building Costs (Boiler replacement and LED Lighting) – $71,000

Capital costs associated with the building in 2017/18 include a replacement of theBoiler $55,000 and installation of LED lighting $16,000. These costs are factored intothe asset replacement plan and are funded from within the existing capital budget. Inlight of extremely high vacancy rates every effort should be made to maintain thebuilding to a high standard.

- Vehicle Changeover – $26,000

The LGA has a fleet of seven motor vehicles which are replaced every 3-4 years.One vehicle is due for replacement during the 2017/18 financial year. Costs for thereplacement of one vehicle have been factored into the existing budget.

- Computer Equipment – $15,000 capital

Two Information Technology servers are due for replacement in the 2017/18 financialyear valued at $31,000. The Executive Committee resolved that the LGA investigatewhether a move to the cloud would be more appropriate. Given the benefit andcomplexity in moving to the cloud the LGA is proposing to replace one server valuedat $15,000 to ensure the server being used for business critical systems remainsunder warranty.

New Initiatives

Below is a summary of the unfunded new initiatives recommended by the Executive Committee. These projects will have an impact on the LGA’s budget deficit in 2017-18, and are presented in their order of priority.



Operational

- Escalating the development of LGA commercial activities. Refer to Appendix 7 for abusiness case seeking the establishment of a new position to lead such developmentactivities. As was noted earlier in this report, a key component in the LGA’s financialposition is to increase revenue generated by commercial activities. Opportunitieshave been identified in this regard particularly associated with public lighting andprocurement. Other states show that by building commercial activities (still in serviceof local government), a reduction in reliance on subscription funding can be achieved.This position is not currently factored in to the budget. This approach is consistentwith LGA Queensland, which has much more mature commercial activities. If it wereto be added, the impact would be a further deficit to the Secretariat’s operatingactivities in the order of $230k. This initiative has been recognised by both theExecutive Committee and Audit Committee as being a priority for 2017/18.Furthermore, the Audit Committee noted that this position would be an investment inthe LGA’s financial sustainability.

- State Election Strategy: Refer to Appendix 6 for a business case outlining a proposalto engage a Senior Policy Officer at 0.8 FTE for a period of 9 months with theobjective to enable the LGA to protect and promote the interest of local government inadvance of the State Election to be held on 17 March 2018. Adding this initiative willincrease the forecast deficit of the Secretariat’s operating activities by $70k. Thisinitiative has been recognised by both the Executive Committee and Audit Committeeas being a priority for 2017/18.

- Management Systems Improvement– Feedback from the Executive Committee andthe Audit Committee highlighted the need to ensure there are adequate resourcesand systems in place to continuously improve the efficiency and effectiveness of theLGA. This includes the development of systems and approaches to examining andimproving the LGA’s member value proposition, and delivering and reporting on theachievement of the priorities in the Strategic and Annual Business Plans. Theinitiative will involve the establishment of a new position to progress the developmentof the LGA’s value proposition considerations and measure, track and report on theperformance of the LGA’s goals and priorities.

Capital

The following capital expenditure is required but not yet budgeted for 2017/18. This expenditure would require new borrowings to be funded in the budget.

- Customer Relationship Management system (CRM): The LGA’s contact database isold and lacks the functionality to record, manage and report on interactions withmembers and stakeholders. The LGA is looking to establish a modern system thatwill record and report on communications with councils and stakeholders, identify keyitems for follow-up and add support the measurement of the LGA’s Value Proposition.The estimated budget of $80k will include installation of a system and consolidation ofcontacts across multiple databases.

- Office Refit – $300,000 The current fitout is over 10-years-old and requires a refreshto better utilise the space available, improve staff productivity and increase revenueopportunities or improved member services. Note that this item is not seeking abudget allocation at this time, further investigations will be undertaken andconsideration of this matter will take in to account discussions to be held on buildingownership. A refit will also add to the value of the building.



- Installation of Solar Panels: A number of different options are being consideredregarding the installation of Solar Panels on LG House to save electricity costs andposition the LGA has being energy efficient. As with the office refit, this item is notseeking a budget allocation at this time, further investigations will be undertaken andconsideration of this matter will take in to account discussions to be held on buildingownership.

Below is a summary of the unfunded new initiatives recommended by the Executive Committee. Due to the reduction in rental income these projects will have an impact on the LGA’s budget deficit in 2017-18.

Total $

2017-18 Budget Deficit -6,000

Staff

Proposal

Unfunded Operating Activity

Comment

Yes Commercial Role -230,000 Meeting Executive Committee recommendation to increase commercial activities and invest in LGA financial sustainability. It is noted that this role will become self-funding in the first 12-24 months

-236,000

Yes Election strategy -70,000 One off expenditure to meet LGA core purpose. -306,000

To be discussed

Management Systems Improvement

-$80,000 Resourcing to improve LGA efficiency & effectiveness with a focus on increasing LGA Member value proposition. Discuss as to whether this is an additional resources or to be funded from existing resources.

-386,000

To be discussed

Board Fees TBA TBA

Unfunded Capital Activity

No Customer Relationship Management System

$80k capital

-$30,000 Operating costs include depreciation over 3year and interest from borrowings. A business case will be provided to the board as part of a budget review to fully cost the replacement of the existing contact database.

-416,000

No Office Refit -42,000 Operating includes depreciation and interest. Recommend to revisit once the existing fitout is fully depreciated in 2019/20.

-458,000

$300k capital

No Building – Solar Power

-10,000 Consider building ownership model before investing in solar power.

-468,000

$150k capital



Conclusion In conclusion, the 2017-18 Annual Business Plan and Budget provides the LGA with a transformational business model that will further enhance our capacity to deliver outstanding value to member councils and create public value.

Priorities within the plan focus on enhancing our communication and engagement, positioning of the sector, being an advocate for positive legislative reform, driving economic development and building on the capacity of the sector through skill development and training.

These priorities have been carefully developed to meet the needs and expectations of our members and respond to influences in our external environment, while also respecting our resourcing capacity.

Financially the LGA remains in a strong position to achieve its objectives in the coming year.

It is recommended that the Board approve the 2017-18 Annual Business Plan and Budget.


Annual Priorities

Our Key Priorities for 2017-18 are:

Position local government through awareness campaigns and maintain effective partnerships and relationships Influence State policy outcomes, deliver an LGA State Election Platform in the lead up to the 2018 State election

Position and support local government as a driver of economic development Support councils to build healthy and resilient communities

Legislation and achieving local government reform Financial sustainability and greater autonomy for councils

Aggregated procurement, shared services Work on sector conduct, and build sector morale

Build local government capacity and the skills of our people Improve and maintain the LGA’s governance; implement the Governance Review

Focus on commercial activities; implement the Schemes Review

Our day to day work includes:

Delivery of training and development to the sector

Monitoring, reviewing & responding to policy, legislation & funding changes that impact LG

Facilitating the delivery of key research projects, for the benefit of the Sector

Writing reports, attending briefings, keeping LG informed of developments & best practice

Participating on committees, working groups and networks, where it adds value to our sector

Responding to media and other external parties, as the voice of LG

Responding to & assisting councils with frontline advice & commercial services

Maintaining internal controls, risk management, systems of support and good governance

Leadership, management and the wellbeing of our staff

Board & Organisational Development

Leadership & Culture

Our top three approaches for demonstrating leadership across the sector and organisation are:

- commitment to our strategy, integrating our plans, and making decisions based on value to the sector

- communicating, engaging and listening to members to develop sector wide policy, for community benefit

- accepting change, making change, being solutions focused, leading debate

Our key focus areas to transform our culture, and 'live' our values and behaviours are:

- Being progressive, professional, respectful, unified

- Setting realistic expectations, benchmarking, reviewing performance

- Quality customer service

- Training and development

Continuous Improvement & Innovation

Our focus on continuously improving our systems, processes and tools will be:

- Improving the LGA's internal controls and long term financial planning

- Increasing transparency and simplifying the presentation of financial information

- Improving AGM / OGM notice of motion processes, including greater understanding of resource impact

- Considering a Board performance review process

Execution

Our Finances

Subscription Income: $2.2m

Other income (investment; sponsorships/events; LG House): $4.36m

New grant funded project income: $38.61m

Related entity income (LGRS): $2.14m

Fee for service income (E&T): $1.09m

TOTAL forecast funds: $48.4m

Employee costs: $3.71m

Non employee costs (incl capital & LG House): $5.94m

Forecast grant funded project costs for 2017/2018: $33.75m

Fee for service delivery costs: $0.98M

TOTAL expenses: $44.3m

Our People

Resources: 41 FTE

Core training and development identified for 2017/2018:

Stakeholder engagement; Project management; Customer service;

Governance & fnancial management; commercial & business; strategic thinking

Measuring our Delivery

The following measures are cascaded to the CEO and all Work Areas as appropriate:

Delivery of key imperatives: Awareness campaign; State and LG election campaigns; Schemes and Governance Reviews Progress of resolutions from meetings of members

Maintaining financial sustainability Increase in member satisfaction

Increase in member value proposition Increase in commercial returns

Strength of Organisational Culture

2017/2018 LGA ANNUAL BUSINESS PLAN - SUMMARY

Member Expectations/Feedback & Significant Influences - Our Members are our customers

Key areas of feedback and signficant external and internal influences for local government and the LGA over the next 12 months include:

What member councils are saying in 2017:

LGA priorities: Important services:

1. Rate capping policy issues 1. Advocacy / lobbying

2. Asset management / infrastructure 2. Elections

3. Economy / Industry 3. LGA Insurance & Indemnity Schemes

4. Revenue / financial sustainability 4. Advice re legal / governance

5. Legislation / compliance 5. Research & development

6. Shared services 6. Procurement / shared services

7. Community engagement 7. Financial sustainability resources

8. Planning / urban development 8. Training for council members and staff

9. Benchmarking / service reviews 9. Workforce, HR, IR

10. Waste policy issues 10. Emergency management

External Environment: Internal Environment:

- Rate capping discussions - Governance & Schemes reviews

- Increasing costs , energy - Internal controls

- Local government reform - Resourcing levels and structural changes

- Funding for local government - Revenue streams: subscriptions, grants, commercial

- Federal agenda, smart cities, innovation - LGA Procurement, commercial services

- Environment - MOU with LGA Queensland

- SA's economic outlook - LGA value proposition

- Sector conduct & morale

- 2018 elections: State & Local

This Plan outlines our 2017-2018 Priorities,

contributing to the LGA’s Strategic Initiatives:

We will do this while always having regard to our

leadership and culture, which in turn influences

our performance

LGA Values and Behaviours


17.39% 12

27.54% 19

17.39% 12

21.74% 15

14.49% 10

1.45% 1

Q1 What is your role within the LocalGovernment sector?

Answered: 69 Skipped: 0

Total 69

Mayor /Chair

Electedmember

CEO Director /executive /managementcouncil...

Othercouncilstaff

Other(pleasespecify)

0%

20%

40%

60%

80%

100%

Answer Choices Responses

Mayor / Chair

Elected member

CEO

Director / executive / management council staff

Other council staff

Other (please specify)

1 / 17

2017 LGA Member SurveyLGA Board Meeting Agenda - 18 May 2017 - of 218

42.03% 29

57.97% 40

Q2 Where is your council located?Answered: 69 Skipped: 0

Total 69

Adelaide metropolitan area Regional SA0%

20%

40%

60%

80%

100%


Adelaide metropolitan area

Regional SA

2 / 17


4.35% 3

10.14% 7

30.43% 21

55.07% 38

Q3 How long have you been involved inlocal government?


Total 69

Less than 1 year 1 to 3 years(including theNovember 2014election)

3 to 10 years More than 10years

0%

20%

40%

60%

80%

100%

4.35%10.14%

30.43%

55.07%


Less than 1 year

1 to 3 years (including the November 2014 election)

3 to 10 years

More than 10 years

3 / 17


72.46% 50

11.59% 8

7.25% 5

4.35% 3

1.45% 1

2.90% 2

Q4 When did you last have direct contact(in any form) with the LGA?


Total 69

Withinlast 3months

4-6 monthsago

7-12months ago

More than1 year ago

None inthe past

Not sure0%

20%

40%

60%

80%

100%

72.46%

11.59%7.25% 4.35% 1.45% 2.90%


Within last 3 months

4-6 months ago

7-12 months ago

More than 1 year ago

None in the past

Not sure

4 / 17


23.19% 16

21.74% 15

44.93% 31

10.14% 7

Q5 How many times have you interactedwith the LGA over the past 12 months?


Total 69

1 to 3 4 to 5 More than 5times

Not sure0%

20%

40%

60%

80%

100%

23.19% 21.74%

44.93%

10.14%


1 to 3

4 to 5

More than 5 times

Not sure

5 / 17


36.23% 25

23.19% 16

36.23% 25

4.35% 3

30.43% 21

30.43% 21

37.68% 26

60.87% 42

17.39% 12

33.33% 23

0.00% 0

1.45% 1

Q6 What are your three (3) preferredmethods of contact with the LGA?


Total Respondents: 69

President’snewsletter

Facetofacemee...

Conference/seminar /...

Socialmedia(Facebook...

CEO’snewsletter

Councilvisitsby...

Circular /letter/...

Email Phone Website

Alloftheabove

Other(pleasespe...

0%

20%

40%

60%

80%

100%

36.23%

23.19%

36.23%

4.35%

30.43% 30.43%37.68%

60.87%

17.39%

33.33%

1.45%


President’s newsletter

Face to face meeting

Conference / seminar / general meeting (AGM/OGM)

Social media (Facebook, Twitter, Online discussion forums)

CEO’s newsletter

Council visits by LGA (President, CEO, LGA staff)

Circular / letter / correspondence

Email

Phone

Website

All of the above

Other (please specify)

6 / 17


Q7 What do you believe should be thepriorities for the LGA over the next 2 – 6years? (please select one preference in

each row)Answered: 64 Skipped: 5

21.88%14

21.88%14

26.56%17

18.75%12

6.25%4

4.69%3 64 2.80

17.19%11

23.44%15

25.00%16

25.00%16

6.25%4

3.13%2 64 2.89

7.81%5

10.94%7

6.25%4

35.94%23

35.94%23

3.13%2 64 3.91

4.69%3

6.25%4

10.94%7

26.56%17

48.44%31

3.13%2 64 4.17

4.69%3

14.06%9

20.31%13

20.31%13

32.81%21

7.81%5 64 3.86

10.94%7

9.38%6

35.94%23

23.44%15

10.94%7

9.38%6 64 3.42

1.56%1

0.00%0

18.75%12

32.81%21

45.31%29

1.56%1 64 4.25

10.94%7

10.94%7

29.69%19

26.56%17

21.88%14

0.00%0 64 3.38

3.13%2

4.69%3

28.13%18

18.75%12

42.19%27

3.13%2 64 4.02

14.06%9

28.13%18

20.31%13

18.75%12

14.06%9

4.69%3 64 3.05

7.81%5

9.38%6

23.44%15

32.81%21

23.44%15

3.13%2 64 3.64

7.81%5

4.69%3

3.13%2

12.50%8

67.19%43

4.69%3 64 4.41

Population

Cultural/s...

Communitye...

Economy/i...

Planning/u...

Environment

Assetmanag...

Emergencyr...

Legislation/...

NRMpolicyi...

Wastepolic...

Ratecappingp...

Amalgamationp...

Communityh...

Revenue/f...

Benchmarking/...

Workforce-c...

Sharedservices

0

2

4

6

8

10

1 - low 2 3 -medium

4 5 -high

Noopinion

Total WeightedAverage

Population

Cultural / social issues

Community engagement / expectations

Economy / industry

Planning / urban development

Environment

Asset management / infrastructure / capital investment /grants

Emergency response

Legislation / compliance

NRM policy issues

Waste policy issues

Rate capping policy issues

7 / 17


12.50%8

10.94%7

25.00%16

18.75%12

28.13%18

4.69%3 64 3.53

14.06%9

23.44%15

26.56%17

18.75%12

14.06%9

3.13%2 64 3.05

4.69%3

7.81%5

15.63%10

25.00%16

43.75%28

3.13%2 64 4.05

4.69%3

12.50%8

23.44%15

26.56%17

28.13%18

4.69%3 64 3.75

14.06%9

12.50%8

20.31%13

26.56%17

23.44%15

3.13%2 64 3.42

4.69%3

7.81%5

18.75%12

29.69%19

35.94%23

3.13%2 64 3.94

Amalgamation policy issues

Community housing policy issues

Revenue / financial sustainability

Benchmarking / service reviews / business analytics

Workforce - capacity building / industrial reform

Shared services

8 / 17


Q8 Advocating for the Sector – One VOICEPlease rate the following LGA services

based on their importance to you and yourcouncil. (please select one preference in

each row)Answered: 63 Skipped: 6

Importance

12.70%8

20.63%13

39.68%25

19.05%12

7.94%5

0.00%0 63

0.00%0

3.17%2

22.22%14

22.22%14

52.38%33

0.00%0 63

15.87%10

28.57%18

38.10%24

11.11%7

6.35%4

0.00%0 63

3.17%2

14.29%9

52.38%33

17.46%11

12.70%8

0.00%0 63

1.59%1

6.35%4

50.79%32

19.05%12

22.22%14

0.00%0 63

6.35%4

20.63%13

41.27%26

19.05%12

9.52%6

3.17%2 63

Importance

Unimportant Slightly important Important Very Important

Extremely important N/A - not applicable / no opinion

AGM / OGM Advocacy /lobbying

Conferences/ BestPracticeShowcase

Research &development

Elections Emergencymanagement

0%

20%

40%

60%

80%

100%

Unimportant Slightlyimportant

Important VeryImportant

Extremelyimportant

N/A - not applicable / noopinion

Total

AGM / OGM

Advocacy / lobbying

Conferences / Best PracticeShowcase

Research & development

Elections

Emergency management

9 / 17


Q9 Assisting the sector to deliver, buildingcapacity. Please rate the following LGA

services based on their importance to youand your council. (please select one

preference in each row)Answered: 63 Skipped: 6

Importance

1.59%1

9.52%6

28.57%18

36.51%23

22.22%14

1.59%1 63

1.59%1

15.87%10

34.92%22

25.40%16

19.05%12

3.17%2 63

4.76%3

26.98%17

39.68%25

15.87%10

7.94%5

4.76%3 63

4.76%3

14.29%9

44.44%28

23.81%15

6.35%4

6.35%4 63

7.94%5

15.87%10

19.05%12

39.68%25

17.46%11

0.00%0 63

Importance


Extremely important N/A – not applicable / no opinion

Adviceregardinglegal issues/ governance

Financialsustainability resources

ElectronicServices

Workforce:IR, HR,trainees

Training:councilmembers;staff

0%

20%

40%

60%

80%

100%



Extremelyimportant

N/A – not applicable / noopinion

Total

Advice regarding legal issues /governance

Financial sustainability resources

Electronic Services

Workforce: IR, HR, trainees

Training: council members; staff

10 / 17


Q10 Advancing the sector, commercialservices. Please rate the following LGA

services based on their importance to youand your council. (please select one

preference in each row)Answered: 63 Skipped: 6

Importance

3.17%2

3.17%2

23.81%15

25.40%16

41.27%26

3.17%2 63

4.76%3

11.11%7

34.92%22

30.16%19

15.87%10

3.17%2 63

Importance


Extremely important N/A – not applicable / no opinion

LGA Insurance / IndemnitySchemes

Procurement / shared services0%

20%

40%

60%

80%

100%



Extremelyimportant

N/A – not applicable / noopinion

Total

LGA Insurance / IndemnitySchemes

Procurement / shared services

11 / 17


Q11 How would you best describe yourviews of the LGA?


5.00%3

11.67%7

40.00%24

31.67%19

11.67%7 60 3.33

1 - Exceptionally negative 2 3 - Reasonable 4

5 - Exceptionally positive

How would you best describe your views of the LGA?0%

20%

40%

60%

80%

100%

5.00%11.67%

40.00%31.67%

11.67%

1 - Exceptionallynegative

2 3 -Reasonable

4 5 - Exceptionallypositive


How would you best describe your views ofthe LGA?

12 / 17


Q12 To what degree would you collaborate /share information with the LGA?


3.28%2

6.56%4

24.59%15

32.79%20

32.79%20 61 3.85

1 - Highly unlikely 2 3 - Likely 4 5 - Highly likely

To what degree would you collaborate / share information withthe LGA?

0%

20%

40%

60%

80%

100%

3.28% 6.56%

24.59%32.79% 32.79%

1 - Highlyunlikely

2 3 -Likely

4 5 - Highlylikely



13 / 17


Q13 Overall, what value do you consider theLGA provides to your council?


3.28%2

21.31%13

34.43%21

21.31%13

19.67%12 61 3.33

1 - No value at all 2 3 - Reasonable value 4 5 - Very high value


0%

20%

40%

60%

80%

100%

3.28%

21.31%

34.43%

21.31% 19.67%

1 - No valueat all

2 3 - Reasonablevalue

4 5 - Very highvalue


To what degree would you collaborate / share informationwith the LGA?

14 / 17


Q14 Overall, what value do you consider theLGA provides to the sector?


3.28%2

18.03%11

31.15%19

24.59%15

22.95%14 61 3.46

1 - No value at all 2 3 - Reasonable value 4 5 - Very high value

Overall, what value do you consider the LGA provides to thesector?

0%

20%

40%

60%

80%

100%

3.28%

18.03%

31.15%24.59% 22.95%

1 - No valueat all

2 3 - Reasonablevalue

4 5 - Very highvalue


Overall, what value do you consider the LGA providesto the sector?

15 / 17


Q15 Would you recommend the LGA toothers?


8.20%5

11.48%7

32.79%20

32.79%20

14.75%9 61 3.34

1 - No not on anything 2 3 - On some things 4 5 - On all things

Would you recommend the LGA to others?0%

20%

40%

60%

80%

100%

8.20% 11.48%

32.79% 32.79%

14.75%

1 - No not onanything

2 3 - On somethings

4 5 - On allthings


Would you recommend the LGA toothers?

16 / 17


Project numberRelative priority

ECM Proposed title of project What is it intended to achieve? The outcome, purpose, or problem to be fixed

What, if any, link to LGA Strategic Plan

Key Initiatives ECM 635291

Committee recommendation

2017.01 C1 649095 EARS EnhancementEnable EARS to push data in real time to State disaster damage assessment platform

2C $20,000

2017.02 C4 649105Updating the Coastal Adaptation Decision Pathways Guidance

The LGA has recently received advice from the CPB and coastal expert Mark Weston, that the guidelines developed by the LGA in 2011 require update. Although the CPB have adopted the guidelines as best practice, NCCARF have recently released Coast Adapt- a tool that was touted as an alternative to the guidelines. Although the LGA tool has been declare the best in terms of providing councils with a pathway to undertake coastal adaptation studies, some of the NCCARF information could be subsumed into the LGA guidelines to improve the process. With coastal issues becoming more prevelent and costly, the LGA should be providing the best advice it can to councils undertaking coastal studies.

1A, 2C, 2D, 3A $30,000

2017.03 B5 649111Strategic Investment Plan for Future Proofing Infrastructure

Councils struggle to pay for the remediation of damage caused by extreme events/ damage caused by observed changes to the climate. The LGA is currently working with Asset Managers to develop guidelines that will provide assistance for incorporating climate risk considerations into Asset Management Plans. The next stage will be to work with councils to develop a strategic investment plan so that they can predict and budget for damage to critical infrastructure as a result of extreme events and observed changes in the climate. Consideration of coastal infrastructure will comprise a significant % of this project. These activities are not currently funded, hence the application to R&D. This project could potentially include working with IPWEA to incorporate more climate risk data into the Nams+ database.

1A, 2C, 2D $50,000

2017.04 B2 649208Development of Community Wellbeing Monitor

Based on the work of the City of Onkaparinga, it is proposed that a Local Government sector-wide Community Wellbeing Monitor is developed to: contribute to shaping the work of the Community Wellbeing Alliance (currently underdevelopment with SA Health); inform the legislative requirement of Regional Public Health Planning, and act as a resource that State and Local Government can utilize to understand the broad wellbeing of the people of South Australia. Four areas that can be used to determine the level of wellbeing experienced in communities–Environmental, Economic Development, Social Development and Health - these are all of direct relevance to the Strategic work of the LGA.

Ki (a, b, c, d, e); KI2 (b, c, d, e); KI3 (a, b, c)

$50,000

2017.06 B1 649210Review of water management legislative and policy arrangements in South Australia

Examination of existing legislation to determine gaps that restrict the development of appropriate flood mitigation strategies e.g. watercourse and levee management, watercourse vs stormwater, management on private land, etc. This will feed in to the Flood Reform Taskforce and allow LG to present alternative arrangements to meet stakeholder needs in managing flood and stormwater management. This will support LGA leading reform on this matter.

1B, 1C $20,000


2017.07 A1 649211LG Elections 2018, Support and Promotion

Local Government Elections are conducted every 4 years, the next occurring in November 2018. The LGA has a number of statutory and 'best practice' tasks to carry out which required project funding as they only occur every four years. The project will also respond to recommendations set out in the Review of the LGA’s Local Government Election Processes report, prepared by Greenhill Research and Planning, undertaken in November 2016. This application is combined (compared to the 2014 LG Election applications) and will cover all LGA areas from Comms, Governance, Legal, Education & Training

1A, 1D, 2A, 2D $142,000

2017.08 B4 649215Evidence to inform LG Advocacy for a Strategic Population Policy

Given the decline in South Australia's population growth, an understanding of population trends in the state is needed to inform planning policies in the future. This is particularly relevant for regional councils, where depopulation is leading to reduction in services, jobs and community wellbeing. - what the situtaion is - what we can do to address the problem - policies for government at all levels.

K1 B,C,D & E & K2 C,D & E

$40,000

2017.09 A2 649216 LGA Outreach Program

Broadly the Outreach Services Program seeks to:• Support improved regional delivery of various services to LGA member councils,including procurement, education and training, risk services and Local Excellencereform initiatives;• Work with LGA member Councils and the LGA to identify and scope any newservices or assistance that may support more efficient long term outcomes forCouncils;• Facilitate stronger Council collaborative projects and coordinate various Council"shared services" group meetings as required;• Manage or oversee a variety of shared service project delivery arrangements forLGA member Councils as appropriate;• Undertake research into the needs and develop proposals, funding applicationsand joint tenders for sharing services between Council groups;• Support delivery of the regional strategic and business plans as relevant andconsistent with the pilot.Broadly the Outreach Services Program seeks to:• Support improved regional delivery of various services to LGA member councils,including procurement, education and training, risk services and Local Excellencereform initiatives;• Work with LGA member Councils and the LGA to identify and scope any newservices or assistance that may support more efficient long term outcomes forCouncils;• Facilitate stronger Council collaborative projects and coordinate various Council"shared services" group meetings as required;• Manage or oversee a variety of shared service project delivery arrangements forLGA member Councils as appropriate;• Undertake research into the needs and develop proposals, funding applicationsand joint tenders for sharing services between Council groups;• Support delivery of the regional strategic and business plans as relevant and

1C, 1D, 1E, 2C $300,000

2017.10 A3 649220 LGA Schemes Review - Phase 2

This project will continue the LGA Schemes Review following the release of the Finity / Batt Report making recommendations for change to the existing governance arrangements. This body of work will involve three key areas being:- review of the Finity Batt Report to determine matters for discussion- define and implement change strategy- develop and implement suite of improved governance arrangements in line withFinity Batt and Auditor General Reports

3D $100,000


2017.11 C2 649221 Infrastructure Provision and Funding - The Use of Separate Rates

Investigate legislative reforms relating to the use of the existing separate rate provisions within the Local Government Act as a tool for securing contributions from developers for infrastructure provision to:· Reduce red tape;· Reduce the resource demands to administer, and · Reduce the risk of a successful legal challenge. The outcomes can provide a basis for engagement with key stakeholders (including State Government and the development industry) and ultimately inclusion in the anticipated 2016 Bill to amend the Local Government Act.

K3 (A and B) $0

2017.12 C5 649222Review and Revision of the LGA’s Authorised Persons webpages

The LGA has a significant amount of information to assist councils with managing authorisations under a range of statutes. These pages have not been updated since 2012. They also failed to make the transition to the new website in an orderly manner and need a complete re-vamp.

nil $5,000

2017.13 B3 649223 LG Workforce Alignment

This project will continue the objective of positioning local government for the future by achieving a common alignment of the 11,000 strong local government workforce. The purpose of this alignment is to establish an industrial framework which enables a culture of meaningful engagement between employees, management and unions that is open and respectful. The project will focus on working through the now identified barriers and communicating with and persuading key stakeholders of opportunities, advantages and significant cost savings achievable in having a Sector wide uniform, reliable and robust approach to managing employee relations issues. This will support Councils achieve best practice service delivery to their communities. It was initially proposed to be undertaken this project in phases as follows: 1. Concept development and feasibility study 2. Detailed model development 3. Implementation The initial grant funded the first phase, following which there was a decision that subject to funding the LGA would move to phases 2 and 3. The funding sought is to continue the LGA's employment of specialist IR/HR employee to undertake phases 2 and 3 above. Some legal advice as to how existing industrial instruments being; the State Awards and individual council Enterprise agreement are migrated to a Sector wide Agreements.

$75,000


2017.14 C3 649228Continuation of the role of e-learning developer

The Education and Training Service wishes to extend the role of 'e-learning developer' for anoher 12 months to continue the developent and delivery of high quality, flexible online training programs specific to the LG Sectors needs. The development of online training tools benefits the sector in the following ways: - Reduces travel and out-of-office time- Reduces costs- Offers self-paced training- Offers relevant and engaging methodology- Available 24x7

2A $30,000

2017.15 C6 649234 Community Engagement (B)

The LGA Community Engagement Handbook has been updated recently (previous R&D Project) and as a result of this update councils have been asking for a measurement tool to be able to measure the outcomes of their community engagement and consultations on annual budget programs. This project application seeks funding to undertake the research and develop an addendum to the LGA Community Enagement handbook that wil give councils the tools and how to guide to be able to measure and evaluate their community engagement and consultations projects.

1A, 1b, 2A, 2C, 3B $20,000

2017.16 B6 649240Develop an Elected Member training pathway

The Education and Training Service has been approached by numerous Councils to develop an Elected Member training pathway that offers Elected Members the opportunity to upgrade the current mandatory Elected Member Training Standard to the national qualification of 'Elected Member Skill Set'.

2A $25,000

$907,000


DRAFT BUDGET 2017/18 FINANCIAL STATEMENTS

Budgeted Profit & Loss Statement

2016/17 Approved

Budget

2017/18 Draft

Budget

$ Change

fav/(unfav)

% Change

fav/(unfav)

INCOME

Revenue from Ordinary Activities 8,308,347 7,771,107 (537,240) (6%)

Project Income 7,916,344 38,388,000 30,471,656 385%

TOTAL INCOME 16,224,691 46,159,107 29,934,416 184%

EXPENSES

Employee Costs 4,481,071 4,224,525 256,546 6%

Depreciation 819,160 754,851 64,309 8%

Project Expenses 12,264,156 33,115,070 (20,850,914) (170%)

Finance Costs 23,650 942,942 (919,292) (3887%)

Other Expenses from Ordinary Activities 3,738,328 3,205,729 532,599 14%

TOTAL EXPENSES 21,326,365 42,243,117 (20,916,753) (98%)

NET PROFIT/(LOSS) (5,101,674) 3,915,990 9,017,663 (177%)

Budgeted Cash Flow Statement

2016/17 Approved

Budget

2017/18 Draft

Budget

$ Change

fav/(unfav)

% Change

fav/(unfav)

Cash from Operating Activities

Receipts from Operations 8,308,347 7,771,107 (537,240) (6%)

Project Funds Received 7,916,344 11,388,000 3,471,656 44%

Payments to Suppliers (8,379,380) (7,460,518) 918,861 (11%)

Project Funds Expensed (10,477,680) (32,985,806) (22,508,126) 215%

Interest Expense (23,650) (942,942) (919,292) 3887%

Net Cash provided by (or used in) Operating Activities (2,656,019) (22,230,159) (19,574,141) 737%

Cash from Investing Activities

Purchase of Property, Plant & Equipment 0 (95,625) (95,625) 0%

Proceeds from Disposal of Property, Plant & Equipment 30,750 0 (30,750) (100%)

Net Cash provided by (or used in) Investing Activities 30,750 (95,625) (126,375) (411%)

Cash from Financing Activities

Proceeds from Borrowings 1,000,000 27,500,000 26,500,000 2650%

Repayment of Borrowings 0 (2,337,144) (2,337,144) (100%)

Net cash provided by (or used in) Financing Activities 1,000,000 25,162,856 24,162,856 2416%

Net Increase (Decrease) in Cash Held (1,625,269) 2,837,072 4,462,340 (275%)

Cash & Cash Equivalent at beginning of period 2,122,913 497,644 (1,625,269) (77%)

Cash & Cash Equivalent at end of period 497,644 3,334,716 2,837,072 570%


DRAFT BUDGET 2017/18 FINANCIAL STATEMENTS

Budgeted Statement of Financial Position

2016/17 Approved

Budget

2017/18 Draft

Budget

$ Change

fav/(unfav)

% Change

fav/(unfav)

Cash & cash equivalents 497,644 3,334,716 2,837,072 570%

Trade & other receivables 2,685,508 29,685,508 27,000,000 1005%

Other current assets 36,252 36,252 0 0%

Total Current Assets 3,219,404 33,056,476 29,837,072 927%

Financial assets 4 4 0 0%

Property, plant & equipment 19,660,697 19,097,772 (562,925) (3%)

Total Non-Current Assets 19,660,701 19,097,776 (562,925) (3%)

Total Assets 22,880,105 52,154,252 29,274,147 128%

Trade & other payables 733,095 733,095 0 0%

Provisions 828,168 927,168 (99,000) (12%)

Borrowings 1,000,000 26,162,856 (25,162,856) (2516%)

Total Liabilities 2,561,263 27,823,119 (25,261,856) (986%)

Net Assets 20,318,842 24,331,133 4,012,291 20%

Reserves 11,303,841 15,406,920 4,103,079 36%

Retained profits 9,015,001 8,924,213 (90,788) (1%)

Total Equity 20,318,842 24,331,133 4,012,291 20%

Budgeted Statement of Changes in Equity

2016/17 Approved

Budget

2017/18 Draft

Budget

$ Change

fav/(unfav)

% Change

fav/(unfav)

Retained Profits

Equity at beginning of year 6,334,796 9,015,001

Net Surplus/(Deficit) for year (5,101,674) 3,915,990

Transfer to/(from) reserve 7,781,879 (4,006,778)

Equity at end of year 9,015,001 8,924,213 (90,788) (1%)

Asset Revaluation Reserve

Opening balance 4,601,429 4,699,679

Asset Revaluation Movement 98,250 96,301

Closing balance 4,699,679 4,795,980 96,301 2%

Project Reserve

Opening balance 10,465,151 2,683,272

Transfer to/(from) reserve (7,781,879) 3,911,153

Closing balance 2,683,272 6,594,425 3,911,153 146%

Other Reserves

Opening balance 3,920,890 3,920,890

Transfer to/(from) reserve 0 95,625

Closing balance 3,920,890 4,016,515 95,625 2%

TOTAL EQUITY 20,318,842 24,331,133 4,012,291 20%


BUDGETED PROFIT & LOSS STATEMENT

Secretariat Project TOTAL Secretariat Project TOTALINCOMERevenue from Ordinary Activities 7,771,106 0 7,771,106 8,308,347 0 8,308,347 (537,241) -7%

Project Income 0 38,388,000 38,388,000 0 7,916,344 7,916,344 30,471,656 79%

TOTAL INCOME 7,771,106 38,388,000 46,159,106 8,308,347 7,916,344 16,224,691 29,934,415 65%

EXPENSESEmployee Costs 3,716,560 507,966 4,224,526 3,893,133 587,938 4,481,071 256,545 6%

Depreciation 754,851 0 754,851 819,160 0 819,160 64,309 9%

Project Expenses 0 33,094,334 33,115,070 0 12,264,156 12,264,156 (20,850,914) -63%

Finance Costs 80,000 862,942 942,942 23,650 0 23,650 (919,292) -97%

Other Expenses from Ordinary Activities 3,226,465 0 3,205,729 3,601,852 136,476 3,738,328 532,599 17%

TOTAL EXPENSES 7,777,876 34,465,242 42,243,118 8,337,795 12,988,570 21,326,365 (20,916,753) -50%

NET PROFIT/(LOSS) (6,769) 3,922,758 3,915,989 (29,448) (5,072,226) (5,101,674) 9,017,662 15%

Variance2017/18 Draft Budget 2016/17 Budget


SECRETARIAT DETAILED DRAFT BUDGET 2017-18

2016/17 Approved

Budget

2017/18 Draft

Budget

$ Change

fav/(unfav)

% Change

fav/(unfav)

INCOME

Member Subscriptions 2,173,283 2,227,615 54,332 2.5%

Commercial Entities 2,166,668 2,146,676 (19,992) -0.9%

Interest on Investments 140,000 90,000 (50,000) -35.7%

Interest Reallocated to Projects (140,000) (70,000) 70,000 -50.0%

Other Income 26,364 24,364 (2,000) -7.6%

Operating Activities * 1,910,926 1,670,950 (239,976) -12.6%

LG House ** 2,031,106 1,681,501 (349,605) -17.2%

TOTAL INCOME 8,308,347 7,771,106 (537,241) -6.5%

EMPLOYEE COSTS

Salaries 3,748,503 3,533,373 215,130 5.7%

Board Allowances 70,530 70,787 (257) -0.4%

Audit Committee Allowances 0 46,400 (46,400) 100.0%

Recruitment, Training and Development 74,100 66,000 8,100 10.9%

TOTAL EMPLOYEE COSTS 3,893,133 3,716,560 176,573 4.5%

OPERATING EXPENDITURE

Administration 129,000 128,500 500 0.4%

Interest Expense 23,650 80,000 (56,350) -238.3%

Statutory Fees 134,100 133,500 600 0.4%

Equipment - Rental, Maintenance, Licencing 83,600 83,000 600 0.7%

Depreciation 127,950 112,536 15,414 12.0%

President's Forum 10,000 10,000 0 0.0%

Meetings / Seminars / Conference 45,000 43,000 2,000 4.4%

Legal Costs 300,000 163,000 137,000 45.7%

Consultants 225,000 225,000 0 0.0%

Travel 73,966 88,700 (14,734) -19.9%

Motor Vehicle 41,700 40,300 1,400 3.4%

SE

CR

ET

AR

IAT


SECRETARIAT DETAILED DRAFT BUDGET 2017-18

2016/17 Approved

Budget

2017/18 Draft

Budget

$ Change

fav/(unfav)

% Change

fav/(unfav)

OPERATING EXPENDITURE (cont.)

Communications / Advertising 213,000 203,320 9,680 4.5%

ALGA Subscriptions 240,307 244,535 (4,228) -1.8%

Emergency Management 3,000 3,000 0 0.0%

Project Funding Awareness Campaign 150,000 150,000 0 0.0%

Overhead Allocations (458,246) (443,801) (14,445) 3.2%

Operating Activities * 1,702,741 1,432,231 270,510 15.9%

LG House ** 1,399,894 1,364,495 35,399 2.5%

TOTAL OPERATING EXPENDITURE 4,444,662 4,061,316 383,346 8.6%

SURPLUS/(DEFICIT) BEFORE PROJECTS (29,448) (6,769) 22,679 77.0%

LG HOUSE **

INCOME

Income 2,031,106 1,681,501 (349,605) -17.2%

TOTAL INCOME 2,031,106 1,681,501 (349,605) -17.2%

OPERATING EXPENDITURE

General Expenditure 708,684 722,180 (13,496) -1.9%

Depreciation 691,210 642,315 48,895 7.1%

TOTAL OPERATING EXPENDITURE 1,399,894 1,364,495 35,399 2.5%

SURPLUS/(DEFICIT) LG HOUSE 631,212 317,006 (314,206) -49.8%

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LGA OPERATING ACTIVITIES *

2016/17 Approved

Budget

2017/18 Draft

Budget

$ Change

fav/(unfav)

% Change

fav/(unfav)AGM & CONFERENCE

Revenue 174,666 201,500 26,834 15.4%

Expenditure (133,000) (161,500) (28,500) -21.4%

Net 41,666 40,000 (1,666) -4.0%

OGM & SHOWCASE

Revenue 175,000 203,600 28,600 16.3%

Expenditure (140,000) (168,600) (28,600) -20.4%

Net 35,000 35,000 0 0.0%

LG ROADS CONFERENCE

Revenue 139,460 168,250 28,790 20.6%

Expenditure (90,000) (118,250) (28,250) -31.4%

Net 49,460 50,000 540 1.1%

ELECTRONIC SERVICES PROGRAM (ESP)

Revenue 621,800 652,600 30,800 5.0%

Expenditure (577,718) (583,854) (6,136) -1.1%

Net 44,082 68,746 24,664 56.0%

EDUCATION & TRAINING SERVICES

Revenue 550,000 445,000 (105,000) -19.1%

Expenditure (512,023) (400,027) 111,996 21.9%

Net 37,977 44,973 6,996 18.4%

PUBLIC LIGHTING

Revenue 250,000 0 (250,000) -100.0%

Expenditure (250,000) 0 250,000 100.0%

Net 0 0 0 0.0%

SURPLUS/(DEFICIT) FROM ACTIVITIES 208,185 238,719 30,534 14.7%

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PROJECT BUDGET SUMMARY 2017/18

CWMS SLGIP Other

Community Waste

Management Scheme

State Local Government

Instructure Partnership

OPENING BALANCE 4,246,183 1,806,699 1,000,000 0 300,000 1,139,484

INCOME

Income 38,168,000 2,298,000 4,200,000 30,000,000 1,408,000 262,000

Interest 70,000 0 55,000 0 15,000 0Funding from Secretariat 150,000 0 0 0 0 150,000TOTAL INCOME 38,388,000 2,298,000 4,255,000 30,000,000 1,423,000 412,000

EXPENSES

Employee Costs 507,966 201,429 59,338 0 72,046 175,153Project Expenses 32,965,070 3,495,512 2,623,600 25,000,000 1,009,653 836,305Finance Costs 862,942 0 0 862,942 0 0

Overhead Costs 129,264 37,524 42,360 0 29,628 19,752

TOTAL EXPENSES 34,465,242 3,734,465 2,725,298 25,862,942 1,111,327 1,031,210

NET MOVEMENT FOR 2017/18 3,922,758 (1,436,465) 1,529,702 4,137,058 311,673 (619,210)

CLOSING BALANCE 8,168,941 370,234 2,529,702 4,137,058 611,673 520,274

2017/18 Draft

Budget

Research &

Development

Regional Youth

Traineeship

PR

OJ

EC

T


LGA of SA ECM 649245 Business Case for Senior Policy Officer (State Election)

Business Case Template:Title: Engagement of Senior Policy Officer (State

Election) Background / Context:

It is likely that there will be a spotlight on local government and the reform of the sector in the 2018 State Election, which will require the LGA to develop and implement strong policy advocacy strategies and campaigns to influence state policy outcomes.

- Therefore, the LGA will require an additional Senior Policy Officer resource for approximately 9 months to assist with the delivery of an LGA State Election Platform in the lead up to the State Election in March 2018.

An additional resource will ensure that the LGA can deliver an effective state election strategy without losing the capacity to deliver on other annual priorities.

Objective / scope (inclusions and exclusions) - The objective is to enable the LGA to protect and

promote the interest of local government inadvance of the State Election to be held on 17March 2018.

- The LGA will be required to represent memberinterests through advocacy activities and politicalengagement on emerging issues such as ratecapping, amalgamations, financial sustainabilityand efficiencies in councils.

- It will be necessary for the LGA to review relevantpolicies from all political parties in the lead up to theelection and where required, to undertakeconsultation with member councils to develop alocal government policy response.

- A new position to be recruited for a 9 month periodwill enable thought leadership on key electionissues for the sector (such as rate capping andamalgamations), providing evidence base to policypositions, and to monitor, review, and influenceactivities of external stakeholders and politicaladvocacy.

- The role will be required to provide strategic adviceon policy issues and ideas to proactively influenceat a political level to support the LGA Executive andBoard on issues relevant to the State Election.



Strategic Alignment This initiative aligns with the LGA Strategic Plan in that it will achieve greater influence for local government (Key Initiative 1) through leadership and advocacy that leads policy reform and contributes to state-wide policy development.

Related Initiatives The development of the LGA’s 2018 State Election Platform will have independencies with, and support, several initiatives currently being undertaken, such as:

o Review of LGA Policy Manualo Local Government (Council) Elections in

November 2018o Development of an LGA Advocacy Plano Development of an LGA Stakeholder

Engagement Plan

Target Outcomes (Benefits) - Improved service to member councils as their

interests are better represented through leadershipand advocacy.

- Improved organisational capacity to deliver onpriority outcomes for the sector

- Achieves policy reform and implementation duringa time critical period of risk for the LGA and thesector.

- Engages closely with relevant stakeholders,including peak bodies and industry groups.



Options: Option 1: Do Nothing

Issue: Work activity is carried by existing members of the policy team, impacting further on capacity and the delivery of other policy priorities.

There is a lost opportunity to bring in additional knowledge and skills to the LGA team during this critical time for the sector.

Benefit: No impact on LGA budget.

Option 2: Engage officer on part-time basis

Issue: May be difficult to attract an experienced officer to the role on a part-time basis

Benefit: An effective officer would be able to deliver these objectives on a 0.8FTE basis – resulting in a reduced impact on the LGA budget.

Option 3: Engage officer full time

Issue: More significant impact on LGA budget

Benefit: Provides an opportunity to fully integrate across other parts of the organisation

Recommended Option - Option 2: Senior Policy Officer at 0.8FTE for a 9

month contract between July 2017-April 2018.

- This option presents a balance between thestrategic need and a cost effective additionalresource.

Financial Considerations

- Total remuneration package for a 9 month contract:$70,000 at 0.8FTE

- Funding source: LGA secretariat budget



Critical Success Factors

Indicators of success of this initiative include:

- Senior Policy Officer provides a level of thoughtleadership to influence an effective LGA 2018 StateElection Platform.

- The LGA is positioned to lead an evidence basedpolicy debate around key local government issuesin the 2018 State Election.

- There is a high level of engagement from LGAmembers in State Election campaign activities.

- All key stakeholders have been extensively briefedon all State Election issues of importance to localgovernment.

- There is a high level of member satisfaction withthe LGA’s State Election activities

- The level of resourcing available matches therequirements of the tasks, contributing to a positiveLGA workplace culture.

Constraints - May not find a suitably qualified candidate for a

short term engagement

Resources: It is proposed that the Senior Policy would report to the Director Policy and work closely with the Executive Director Public Affairs in the development and delivery of the LGA’s State Election Platform.


LGA of SA ECM 650206 Business Case for escalation of LGA commercial activities

Business Case Template:Title: Escalation of Commercial Activities – engagement

of an Executive Director Commercial Background / Context:

As can be identified in the draft 2017/2018 Annual Business Plan and Budget, the LGA has several member service opportunities that if delivered will significantly advance the sector and provide efficiency and effectiveness gains for all councils. These opportunities include the modernisation of the Schemes’ governance arrangements, the transformation of LGA Procurement, the establishment of a public lighting company that could also deliver on smart cities technology to benefit councils and provide a greater dividend, the development of shared services / managed commercial operations across the sector.

In addition to the real sector advancement that can be achieved by further developing LGA commercial services, an escalation of commercial activities would contribute to the LGAs long term financial sustainability and increase member value by reducing reliance on subscription fees.

Objective / scope (inclusions and exclusions) The objective is to increase capacity within the LGA to

escalate the development of LGA commercial activities. Such increased capacity will be achieved through the introduction of a new position at the Executive Director level focused on the development and delivery of commercial services.

A key component in the LGA’s financial position is to increase revenue generated by commercial activities. Opportunities have been identified in this regard particularly associated with public lighting and procurement. Other states show that by building commercial activities (still in service of local government), a reduction in reliance on subscription funding can be achieved.

Strategic Alignment This initiative aligns with the LGA Strategic Plan in that it will develop, review and improve LGA commercial enterprises (key initiative 3).

Related Initiatives LGA Procurement transformation initiative LGA Schemes Review LGA Governance Review LGA Public Lighting Business Plan Day to day delivery of Education & Training and

Electronic Services Program Memorandum of Understanding with LGA

Queensland



Target Outcomes (Benefits) - Improved service to member councils through the

delivery of well-defined and structured commercialservices.

- Improved organisational capacity to deliver onpriority outcomes for the sector.

- Improved financial position of the LGA, with lessreliance on subscription income.

- Sector reform through the delivery of sharedservices and managed commercial operations

Options: Option 1: Do Nothing

Issue: little to no progress achieved in the short-term on major reform opportunities for the LGA in areas such as aggregated procurement, public lighting, shared services.

There will also be a lost opportunity in terms of changing the LGA’s financial model.

Benefit: No impact on LGA budget.

Option 2: Engage a consultant to undertake the assessment and development of commercial activities

Issue: Little transfer of skills to within the LGA Secretariat. There will be a risk of lack of alignment between the consultant’s objectives and the LGA / local government’s objectives. The sustainability of the commercial activities may not be achieved due to lack of skills development within the LGA.

Benefit: may be less financial resources in the short term.

Option 3: Engage an Executive Director Commercial

Issue: More significant impact on LGA budget in the short to medium term. This issue will be addressed in the longer term with the commercial services becoming fully self-funded, and in time providing a dividend back to the LGA.

Benefit: Provides opportunity to fully explore and develop commercial opportunities, as well as aggregating and providing specialist leadership skills to existing commercial / fee for service arrangements.



Recommended Option - Option 3: Engage an Executive Director

Commercial.

- Whilst requiring financial outlay in the first instance,this option presents opportunity to be fully self-funded in the medium to long term, with potential toprovide a dividend back to the LGA.

Financial Considerations

- Total remuneration package for a 12-monthcontract: $230,000

- Funding source: LGA secretariat budget

Critical Success Factors

Indicators of success of this initiative include:

- Executive Director Commercial to provideleadership and expertise in the development anddelivery of commercial services.

- The LGA is positioned to lead the sector’sadvancement in the areas of the Schemes, publiclighting, procurement, shared services.

- There is a high level of engagement from LGAmembers in commercial activities.

- There is a high level of member satisfaction withthe LGA’s commercial activities.

Constraints - May not find a suitably qualified candidate for a the

role

Resources: It is proposed that the Executive Director Commercial would report to the Chief Executive Officer and work closely with the Executive Director Public Affairs and the Executive Director Corporate & Member Services in the development and delivery of the LGA’s commercial activities.



APPENDIX 8

LGA BOARD ALLOWANCES BY JURISDICTION

All allowances are on a per annum basis unless otherwise indicated

SA VIC QLD WA TAS NT NSWPresident $47,982 $112,400 $130,852 $128,850 $46,246 $15,000 173,000Immediate Past President

$4,215 n/a n/a n/a n/a n/a n/a

Vice President $4,215 $13,300 x 2 1 metro + 1 rural

$26,608.52pa x 3 Board Directors

$32,212pa $11,572 Nil Data not available

Board Members

$100 per board meeting attended

$9,056pa x 10 $455 per meeting x 15

$3,300pa x 24 $191.50 per day Nil Data not available

Mayor $22,800 - $86,000pa

$59,257 - $189,294pa

$101,631 - $242,349pa

$508 - $88,864pa

$31,211 - $121,627pa

$34,273 - $156,821

$5,340 - $244,260

Deputy Mayor $7,125 - $26,875pa

$56,296 - $94,641pa

$58,633 - $168,081pa

$508 - $19,864pa

$18,330 - $57,193pa

$14,200 - $56,457pa

$5,340 - $244,260

Councillor $5,700 - $21,500pa

$8,324 - $44,444pa

$50,815 - $144,627pa

$8,918 - $34,750pa

$12,502 - $47,694pa

$1,700 - $37,640pa



7.11 LGA Workers Compensation Scheme Update


From: Kathy Jarrett, Executive Director, Corporate and Member Services


Strategy: 3D Develop, review and improve LGA commercial enterprises


ECM: 647115

Recommendation

That the LGA Board notes the LGA Workers Compensation Scheme update from 30 March 2017 Board Meeting.

Discussion

Financial Report

The Financial results as at 28 February 2017 were received and adopted.

o The LGAWCS financial performance for the first eight months of FY2016-17has been very strong, delivering a surplus of $25.9m which is $1.1m ahead ofbudget. Income from investments is $993k which is $63k above budget.

The key driver of the strong financial performance is the continuedreduction in new claims (having received 320 YTD which is 16% lowerthan same period LY) and lower Claims Paid than what was projected.

Provisional Budget FY2017-18

The Provisional Budget for FY2017-18 was noted.

o The Scheme Manager presented a Provisional Budget in March forconsideration by the Board pending the completion of the 2016/17 financialyear.

o The Provisional Budget was prepared based upon the financial information asat 28 February 2017, having considered items discussed at the 2017 PlanningForum but without the 2017 Actuary Report to be completed by CumpstonSarjeant in May 2017.

o The Provisional Budget FY2017/18 projects an operating Surplus of$1,022,672 and a proposed $2m Special Distribution back to the Membership(noting that a $1m Special Distribution was allocated in FY16-17).



The Board received and adopted the Scheme Managers recommendation that a$2m Special Distribution be issued in FY2017-18

2017 Board Strategic Planning Forum

The Board noted the Discussion Points & Action Items arising from the jointBoard Scheme Planning Forum which was held on 1st and 2nd February 2017

o Key items to be addressed;

Communication strategy promoting the LGAWCS outstanding resultsand subsequent benefits to the Sector

Communication to Members of key sector benefits funded by theLGAWCS such as WHS & Risk training, Healthy Lifestyle Program,and Skytrust Risk Management Software

Crown Agencies relinquishing Self-Insurance Status and Claimsmanagement to RTWSA

Ageing Workforce strategy

LGAWCS Strategic Plan 2014-2017 Update

The Board notes the LGAWCS Strategic Plan update, supported by theLGAWCS Annual Business Plan 2016/17 which focuses on key elements of theStrategic Plan;

o A clear understanding of new RTW Act legislative requirements for Memberservices and operations;

o A clear understanding of LGAWCS and Member requirements for retention ofthe self-insurer licence;

o The continued provision of claims trends and cost comparison data for LocalGovernment;

o Ongoing consideration of WHS systems development and monitoring processfor 2016/17;

o Provision of information and guidance via LGRS Member Centre

o Strategic approach for specific regions (Metropolitan / Regional) with thesupport of established WHS practitioner groups across SA to drive theapplication of WHS and IM processes and systems for LG;

o Individual Council Action Plans prepared with Members.

Return to Work SA Self-Insurance License Evaluation

The Board noted the extensive effort being applied by the LGAWCS, WHS teamin preparing the RTWSA Partnership Councils for the Self-Insurance LicenseReview which will take place in May 2017

The value of Self-Insurance and the saving delivered to the sector throughLocal Government being Self-Insured has been actuarially determined to be$256m. This is conservative as this figure is simply comparing the LG Industryrate for RTWSA with the actual rate for LGAWCS members



The LGAWCS Self-Insurance licenses is being assessed by RTWSA against acriteria with a view to securing a 5 year license extension, however the durationof the license is issued at RTWSA’s discretion

The renewal of the self-insurance licence has been incorporated into a Project plan to ensure all required actions are identified and tracked. The project plan is on track at this time. The 3 Councils that have been selected by RTWSA for the Audit (City of Mitcham, Port Augusta and Kingston) have all been supported in the assessment of their current status by WCS staff and short term action plans have been developed to focus on the critical aspects that need to be addressed.

Key actions include:

o The assessment and development of plans to focus on the critical aspectsthat need to be addressed between now and the evaluation.

o Engagement with the evaluator to identify the evaluation sites and to clarifythe focus areas for evaluation.

o Collation of the pertinent information for the Self-insurers Self-Assessment

RTWSA have conveyed that the other (12) partnership Councils are “on Standby” in that, in the event that circumstances prevent any of the selected councils from being evaluated (due to extraordinary circumstances, like natural disaster, or an operational catastrophe with in a particular evaluation Council), or additional evidence is required to make a determination for a particular standard in relation to the industry, RTWSA reserves the right to draw in any of the partnership Councils to complete the evaluation.

LGAWCS Fund Claims Performance

The Board noted Scheme claims and injury management performance for thecurrent year

Overall total claim numbers continue to trend downwards after 8 months of the year, having received 320 new claims which is 16% lower than the same month LY. The following key indicators have been identified as at 28 February 2017;

1. Injuries involving brush cutters, chainsaws, handsaws and shovels and spades haveincreased cost expenditure at $320,256 in the 2017FY compared to $96,550 in the2016FY.

2. Neck injuries whilst remaining consistent in volume (10 claims YTD, compared to 9 in2016FY) have increased cost expenditure of approximately 50%.

3. Similarly from a mechanism of injury point of view, falls from the same level, muscularstress and repetitive movement have all recorded claim cost increases of 42%, 51% &50% respectively, whilst still maintaining similar or lower claim volumes in comparisonto the 2016FY.

4. Claim cost reductions have been recognised with contusion / crush injuries of$34,166.76 (55%) and hernia injuries of $28,929.72 (50%).

5. 20 Psychological claims have been received, which is 9 below the same period LY.



Membership & Competitive Environment

That the Board notes that a resolution carried at City of Marion General CouncilMeeting on 14th March 2017 to ‘test the market for insurance coverage’ with theCEO to present the results at a GCM

The Scheme Manager confirmed that City of Marion had advised its intention to proceed to undertake an “insurance” tender as part of a process to compare the value and benefits it receives from ongoing participation as member of the mutual Schemes, as opposed to other insurance options that might be available. The timing of the tender process is still to be determined but as the City of Marion was not in a position to confirm its decision prior to 90 days before the 2017/2018 membership renewal (30 June 2017), the tender process will be applicable to the 2018/2019 financial year. City of Marion has invited the mutual Schemes to respond to the tender.



Healthy Lifestyle Program – 1st Quarter Report 2017

That the Board noted the 1st Quarter Report on the Healthy Lifestyle Programand the positive health gains the sector has derived from this successful andvalued LGAWCS service to Councils



Next LGAWCS Board Meeting

8 June 2017



7.12 LGA Mutual Liability Scheme Update


From: Kathy Jarrett, Executive Director, Corporate and Member Services


Strategy: 3D Develop, review and improve LGA commercial enterprises


ECM: 647116

Recommendation

That the LGA Board notes the LGAMLS Meeting Report of 30 March 2017.

Finance Report

As at 28 February 2017, the Scheme has accumulated an operating surplus of $ 24.78m with anticipated investment income slightly below budget. As at February 2017, the LGAMLS had $ 26.87m invested with LGFA

Provisional Budget The Scheme Manager presented a 2017/2018 provisional budget influenced by the review

of Contributions in line with the Contributions policy (annual contribution increase inaccord with LGPI as at previous December of each financial year with LGPI as at Dec2016 = 1.6% (Source: SA Centre for Economic Studies) and based on following:

o Bonus pool to be calculated to offset LGPI increase and reflect nil increase for2017/2018 contributions

o Financial impact of offering Membership incentives (3 year commitment,membership all Schemes/Funds discount)

o Consideration of financial impact of any increased costs and/or changedconditions relating to a revised Reinsurance Programme

o Review of Accumulated Surplus, application of Special Distribution and optionsfor delivery

o Impact on Investment Income (rate stability, accumulated surplus revision,quarterly contribution payments)

o Risk Management Development Fund $ 750,000

o Retention of 100% Membership and impact of potential change in Membership



S142 (Duty to Insure) Local Government Act 1999 – Regulation Amendment

The LGA has advised the Board that the increase to $300m Civil Liability protection as recommended will take effect as from 1 July 2017. The amendment will impact on Regulation 24 of the Local Government (Financial Management) Regulations 2011 increasing $50m to $300m.

24—Duty to insure against civil liability: For the purposes of section 142(1) of the Act, a council must take out and maintain insurance to cover its civil liabilities at a minimum level of cover of ($300 million).

2017 Strategic Planning Forum

The joint 2017 Planning Forum was held over two days on Wednesday 1 and Thursday 2February 2017. The success of the strategic management of the LGAMLS continues tobe dependent on:

Continuing 100% Council Membership

Good governance and Board direction

Stable Financial Success – maintaining, exceeding budget predictions

Long term support of the State Government via the Treasurer’s Indemnity and partnering

Established, affordable commercial Reinsurance structure

Ability to influence and support maturing risk management culture

Ability to deliver implement sector wide Value Add services consistently, cost effectively

Financial Success and Incentives

Accumulated Surplus

The Board note the report and endorsed The application of the formula for setting the LGAMLS Accumulated Surplus target relevant to the 2016/2017 financial year based on the proposed Accumulated Surplus Target and Special Distribution amount as per the provisional budget (subject to Actuarial report as at June 2017). The Board also agreed to distribute the Special Distribution at a time to reflect a net amount applicable to the 2017/2018 membership contribution

Membership & Competitive Environment

The Scheme Manager confirmed that City of Marion had advised of its intention to proceed to undertake an “insurance” tender as part of a process to compare the value and benefits it received by ongoing participation as member of the mutual Schemes, as opposed to other insurance options that might be available. The timing of the tender process was still to be determined but as the City of Marion was not in a position to confirm its decision prior to 90 days before the 2017/2018 membership renewal (30 June 2017), the tender process will be relevant to the 2018/2019 financial year. City of Marion has invited the mutual Schemes to respond to the tender.



Risk Management Update

The Board considered the report provided by the Risk Department noting the status of the Community Resilience and Rail Interface projects. The Scheme Manager raised the emerging issue relating to the application of the revised Development Act and attaching legislation. Interpretation and application of revised regulatory functions is proving difficult for Council planners – resulting in more challenges and complaints from both the applicants and applicant’s neighbours. The LGAMLS is experiencing a trend in the increase in the number of related claims and corresponding costs. The LGA requested the Scheme Manager to partner with the LGA’s Director Policy to address this emerging trend for the benefit of the sector.

Next Meeting The next meeting of the Board will be held on Thursday, 8 June 2017 at 11.00am,

LGRS Boardroom.



8.1 South Australian Public Health Council

Nominations to Outside Bodies

From: Rachel Earl, Project Coordinator – Public Health Planning





Recommendation

That the LGA Board forward a panel of 5 nominees (including at least two males and two females) to the Minister for Health for the appointment of one ‘deputy positon’ to a member of the South Australian Public Health Council, for a term commencing immediately on gazettal.

Discussion

The Hon Jack Snelling, Minister for Health has requested nominations for a Local Government nominee for the position of deputy to a member of the SA Public Health Council, for a term commencing on gazettal and expiring on 11 March 2018.

The South Australian Public Health Council (SAPHC) is established pursuant to the South Australian Public Health Act 2011. Its role is to:

(a) assist and advise the Chief Public Health Officer in relation to:

i. the protection and promotion of public health;

ii. the development and maintenance of a system of strategic planning for publichealth at the local, regional and State-wide levels;

iii. the development of health plans under this Act;

iv. strategies to ensure that a sufficiently trained and skilled workforce is in place forthe purposes of this Act;

v. programs to promote public health research in the State;

vi. the preparation of the biennial report under Division 2; and the setting ofstandards and qualifications for authorised officers; and

(b) any other functions assigned to the South Australian Public Health Council (SAPHC)by this or any other Act or by the Minister or the Chief Public Health Officer.



The current LGA nominees appointed to the SAPHC are Cr Susan Whitington of City of Norwood, Payneham & St Peters and Mr Gary Mavriniac of The Barossa Council. Ms Louise Miller Frost of City of Burnside and Deputy Mayor Arthur Mangos of City of West Torrens are deputies. The vacancy is a result of the resignation of Ms Louise Miller Frost.

SAPHC meets approximately four times per annum. An appointed member is entitled to fees, allowances and expenses approved by the Governor.

The LGA has been advised that the state government no longer accepts nomination forms for nominees seeking appointment. All nominees must provide a CV or resume setting out their relevant skills and experience. Nominations close on 17 May 2017, and a full list of nominees will be provided to members at the meeting, together with the CVs or resumes and a summary table of the relevant skills and experience of the applicants.

Requirement for 5 Nominations

As a result of a drafting anomaly in the South Australian Public Health Act, the LGA is required by law to provide 5 nominations for appointment, even though only one position is vacant. SA Health recognises that this requirement is onerous and unworkable and is currently reviewing this section of the Act with a view to amending the requirements.


Nominations to Outside Bodies - PART A

ECM 649472

Name of Body South Australia Public Health Council

Legal Status of Body Statutory Authority

Summary Statement The South Australian Public Health Council (SAPHC) is pursuant

to the South Australian Public Health Act 2011.

SELECTION CRITERIA FOR MEMBERSHIP ON OUTSIDE BODIES The following selection criteria must be addressed when completing Part B

Qualifications

Required

(formal qualifications

relevant to the

appointment)

N/A

Industry Experience Must have experience in Local Government

Board / Committee

Experience

N/A

Key Expertise

(other relevant experience

i.e. those requirements

established for a

Board/Committee under an

Act)

Qualifications in public health and experience in the

administration of public health at the Local Government level is

desirable.

LIABILITY AND INDEMNITY COVER The LGA requires that representatives on outside bodies be appropriately insured

throughout the period of their appointment and seeks to collect details of the insurances provided by that organisation (on an annual basis).

Insurance information (Certificates of Currencies or equivalent)

supplied by the Outside Body

Yes

Insurance Policies are Valid & Current Yes

Version: 3, Version Date: 11/04/2017Document Set ID: 649472



9.1 Confidential Minutes of LGA Board meeting held on 16 March 2017

Confidential Reports



ECM: 650528

Recommendation

Resolution to move into confidence:

That the LGA Board:

1. resolves to consider Agenda Item 9.1 – Confidential Minutes of LGA Boardmeeting held on 16 March 2017 in confidence because it is information, therelease of which could prejudice the LGA’s strategic or negotiation position(9.3, 9.4, 9.5 & 9.6); and

2. orders all observers at the meeting, with the exception of staff on duty, beexcluded from attendance at the meeting for Agenda Item 9.1 - ConfidentialMinutes of LGA Board meeting held on 16 March 2017.

Resolution to move out of confidence:

That the LGA Board:

1. confirms the confidential minutes of the meeting held on 16 March 2017 as atrue and accurate record of the proceedings held; and

2. moves out of confidence and having considered Agenda Item 9.1 -Confidential Minutes of LGA Board meeting held on 16 March 2017 inconfidence resolves to retain the attachment in confidence within theparameters of the original resolutions contained within.

Discussion

The draft confidential minutes of the LGA Board meeting held on 16 March 2017 are attached to the Confidential Agenda for confirmation as to their accuracy. The draft public minutes are listed under Minutes of Previous Meeting within the agenda for this meeting and will be separately adopted.



9.2 Confidential minutes of LGA Executive Committee meeting held on 27 April 2017




ECM: 650529

Recommendation


That the LGA Board:

1. resolves to consider Agenda Item 9.2 – Confidential Minutes of LGAExecutive Committee meeting held on 27 April 2017 in confidence because itis:

confidential commercial information which could reasonably beexpected to prejudice the commercial position of the person whoprovided the information or confer a commercial advantage on a thirdparty and which would, on balance, be contrary to the public interest(6.2 & 7.4); and

information that the release of which could prejudice the LGA’sstrategic or negotiation position; (7.1 & 7.3).

2. orders all observers at the meeting, with the exception of staff on duty, beexcluded from attendance at the meeting for Agenda Item 9.2 - ConfidentialMinutes of LGA Executive Committee meeting held on 27 April 2017.

Resolution to move out of confidence:

That the LGA Board:

1. notes the confidential minutes of the LGA Executive Committee meeting held27 April 2017; and

2. moves out of confidence and having considered Agenda Item 9.2 -Confidential Minutes of LGA Executive Committee meeting held on 27 April2017 in confidence resolves to retain the attachment in confidence within theparameters of the original resolutions contained within.

Discussion

The confidential minutes of the LGA Executive Committee meeting held on 27 April 2017 are attached to the Confidential agenda and will remain confidential within the parameters of the original resolutions.



9.4 Public Lighting Update - Grounds for moving into confidence



Lisa Teburea, Executive Director Public Affairs



Meeting: LGA Board 18 May 2017

ECM: 650475

Recommendation


That the LGA Board:

1. resolves to consider Agenda Item 9.4 - Public Lighting Update in confidencebeing satisfied that the information received, discussed or considered inrelation to Agenda Item 9.4 is information the release of which couldprejudice the LGA’s strategic or negotiating position; and

2. orders all observers at the meeting, with the exception of staff on duty andnon-voting deputies be excluded from attendance at the meeting for AgendaItem 9.4 - Public Lighting Update.

Resolution to deal with the information discussed in confidence:

That the LGA Board moves out of confidence and having considered Agenda Item 9.4 - Public Lighting Update in confidence resolves to retain the report and resolution inconfidence until the matter is settled because it is information, the release of whichcould prejudice the LGA’s strategic or negotiation position.

Discussion

Refer to confidential report.



9.5 Application for Litigation Support from City of Adelaide - Grounds for moving into confidence


From: Andrea Malone, Director Legislation


Strategy: 2A Support local government through training and resources


ECM: 650210

Recommendation


That the LGA Board:

1. resolves to consider Agenda Item 9.5 - Application for Litigation Assistancefrom City of Adelaide in confidence being satisfied that the informationreceived, discussed or considered in relation to Agenda Item 9.5 isinformation that it involves legal advice; and

2. orders all observers at the meeting, with the exception of LGA BoardDeputies and staff on duty, be excluded from attendance at the meeting forAgenda Item 9.5 - Application for Litigation Assistance from City of Adelaide.


That the LGA Board moves out of confidence and having considered Agenda Item 9.5 - Application for Litigation Assistance from City of Adelaide in confidence resolves to:

1. retain the report and the attached application of Adelaide City Council inconfidence until the litigation process is complete; and

2. release the minutes in relation to this matter.

Discussion




9.6 Renewal of Deed of Indemnity between the Treasurer of SA and the Local Government Association - Grounds for moving into confidence






ECM: 650445

Recommendation


That the LGA Board:

1. resolves to consider Agenda Item 9.6 - Renewal of Deed of Indemnitybetween the Treasurer of SA and the Local Government Association inconfidence being satisfied that the information received, discussed orconsidered in relation to Agenda Item 9.6 is information that the release ofwhich could prejudice the LGA’s strategic negotiation position; and

2. orders all observers at the meeting, with the exception of LGA BoardDeputies and staff on duty, be excluded from attendance at the meeting forAgenda Item 9.6 - Renewal of Deed of Indemnity between the Treasurer of SAand the Local Government Association.


That the LGA Board moves out of confidence and having considered Agenda Item 9.6 - Renewal of Deed of Indemnity between the Treasurer of SA and the LocalGovernment Association in confidence resolves to retain the report in confidence untilsuch time as the renewal of the Treasurer’s Deed of Indemnity is finalised becauserelease of the information contained within the report could prejudice the LGA’sstrategic negotiation position.

Discussion




9.7 Local Government Auditing Processes – Grounds for entering confidence


From: Lisa Teburea, Executive Director Public Affairs




ECM: 650523

Recommendation


That the LGA Board:

1. resolves to consider Agenda Item 9.7 - (Local Government AuditingProcesses) in confidence being satisfied that the information received,discussed or considered in relation to Agenda Item 9.7 is information thatthe release of which could prejudice the LGA’s strategic negotiationposition; and

2. orders all observers at the meeting, with the exception of LGA BoardDeputies and staff on duty, be excluded from attendance at the meeting forAgenda Item 9.7 - (Local Government Auditing Processes).


That the LGA Board moves out of confidence and having considered Agenda Item #.# - (Local Government Auditing Processes) in confidence resolves to release the reportand the minutes relating to this item.

Discussion

