Finance
FinanceLocal Government in SA manages its finances conservatively under extreme constraints. It has access to one tax, Council Rates, has very low debt and receives an unfair share of State and Federal government funding. In 2005 the LGA commissioned an Independent Inquiry into the Financial Sustainability of Local Government in SA. Background to the inquiry, its final report and processes for responding to its 62 recommendations can be found - here. More information on the Financial Sustainability of Local Government in SA - https://www.lga.sa.gov.au/goto/fsp. Information to assist Councils in this area can be found below. |
Financial ManagementThere is a continuing evolvement and reform of financial management practices occuring, both directly and indirectly, in Local Government. Recent and current changes and issues include:
A range of resources have been developed to assist Councils apply good practices in financial management which can be found at www.lga.sa.gov.au/goto/fsp. What's New2012 Better Practice Model - Financial Internal Controls The LGA President has written to the Minister for State/Local Government Relations, seeking his approval to have the Better Practice Model - Financial Internal Controls prescribed as the standard by which auditors will asess the internal financial controls of Local Government. 2012 Better Practice Model - Financial Internal Controls
2012 Model Financial Statements for SA The South Australian Local Government Financial Management Group (SALGFMG) worked with Coalface Software Solutions to develop the set of Model Financial Statements for South Australian Councils for 2012. Model Financial Statements 2012 Local Government ReformIn February 2010 the LGA, working collaboratively with the Department of Planning and Local Government, received funding approval from the Australian Government's Local Government Reform Fund towards a comprehensive "Improving SA Councils' Asset and Financial Management Practices" project. The LGA has underpinned this initiative with organisational changes to showcase an ongoing Local Government Reform agenda. More information about the LGA's Local Government Reform Program and the "Improving SA Councils' Asset and Financial Management Practices" project can be obtained via the following link: www.lga.sa.gov.au/goto/reform. Useful links
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Economic and Finance Projects
Council Rates Notice RedesignTo redesign rates notices to provide a less cluttered and more modern notice while providing adequate space to communicate to rate payers. Also to investigate digital printing options to allow for an updated rates notice each quarter |
Developing a Regional Development Plan - Pilot Program (2013.22)Under the Local Excellence Program, the LGA will work with a group of Councils within a region to investigate the feasibility of developing a Regional Development Plan in place of individual Council Development Plans. Along with the alignment of planning policies across regions, there is also opportunity to streamline regional decision making through Regional Development Assessment Panels |
Economic Stimulus GuidelinesTo examine the policy, strategy, procurement and advocacy functions of LG to determine if and how Councils can stimulate their local and regional economy. The project will involve a group of Councils from both Metropolitan and Country regions and the South Australian Centre for Economic Studies. |
Ensuring LG Services ProvisionTo develop a resource that examines the economic impact of the drought on M&MLGA Councils' provision of Local Government services in affected communities and provides guidance on what level of services should be maintained and how the taxation effort can be equitably distributed to provide for those services. |
Fees and Charges set by Statute - Cost Recovery ModelTo build business models for appropriate cost recovery for Local Government fees and charges set by State statute. These fees and charges have not been changed for many years and the bases on which they are established and escalated annually requires an overhaul. In addition, fees and charges will be introduced through significantly amended or new regulations and a cost recovery basis for these fees/charges is required. As a priority, the establishment of a fee base for the newly introduced Roof Truss inspections will be developed. |
Financial Assistance Grants (FAGS) ReviewTo conduct comprehensive research and prepare a paper to support the SA position for an increased and permanent FAGS funding program recognising SA Councils on an equitable basis with other States. |
Financial Management Reporting - Accounting Committee ProjectThe project provided support for the LGA Financial Advisory Committee. The key role of the committee is to provide advice to the LGA State Executive on financial management issues. In addition to the policy advice to LGA State Executive, the Committee will prepare newsletters, and guidelines etc. for Councils on financial management matters. |
Financial Sustainability Program ImplementationTo roll out a program of projects and activities from 2006 to end of 2008, to address the recommendations of the Financial Sustainability Inquiry. |
Financial Sustainability Program Implementation 2To roll out a program of projects and activities from 2009 to end of 2010, to address the recommendations of the Financial Sustainability Inquiry. |
Future Library FundingThis project is designed to explore future alternatives for Library funding considering possible constraints imposed by the Sustainable Budget Commission. |
Impact of Global Financial Crisis on SA Local GovernmentTo undertake a credible external analysis of the likely impacts on Local Government in SA of the Global Financial Crisis including both areas where an impact may be expected to emerge and where an impact may be expected but is unlikely to emerge. |
Local Government Finance and Economic Model to Manage GrowthTo investigate and develop a financial model to assist Councils in planning for and managing costs associated with residential growth. The model will be used to assist in long term financial planning and development of asset management plans. It will be a useful tool to also determine resource implications to meet the servicing needs for a growing community. |
Local Government Reform Fund - SA ApplicationThe Reform Fund is intended to: - support the implementation of nationally consistent frameworks for Local Government asset and financial management, as agreed by the Local Government and Planning Ministers' Council' - encourage collaboration between Councils to improve their capacity to serve local communities; - building Local Government capacity by funding collaborative projects which help build resilience in critical areas such as asset and financial management, workforce planning, or demographic and climate change adaptation; and - have a component to assist in improving the collection and analysis of nationally consistent data on local assets and finances. |
Localism: Learning from Federal Nation Building, (Economic Stimulus) ProjectsTo review the evaluations of a number of Federal nation building projects (economic stimulus) to illustrate how some of these initiatives could have been better administered and delivered through LG. The review to include a summary of key examples of design, administration and delivery arrangements that would build the capacity of LG to deliver national programs. |
Nation Building and Fiscal Stimulus PackageTo provide specific support to Councils in relation to the Federal Government's Fiscal Stimulus Package and the Regional and Local Community Infrastructure Program. |
New Options for Revenue Raising in LGTo explore new ways of conducting business that will open up avenues for funding. The new ways may relate to State Financial Transfers, co-operative business activities in key areas of LG interest (eg carbon framing, water, waste). The project will review national and international experiences and where appropriate set a framework for trialling new approaches |
Raising Awareness of Regional ContributionsTo develop fact sheets/ regional profiles for the seven non-metropolitan RDAs that summarise their current contribution to the SA economy, consider and prioritise future contributions and highlight potential issues/barriers to growth. |
Regional Capacity Building AllocationAn allocation of funding to enable the capacity building funding to be made available to the Regional LGAs and Metro Group. |
Regional Development Australia Reform ImplementationTo provide assistance to Councils involved in joint resourcing agreements with the SA Government for the operation of Regional Development Boards as a part of the transition into tripartite Regional Development Australia bodies. The assistance may be in the form of industrial relations advice or on other aspects of the transition impacting Councils. |
Revenue Raising ConstraintsTo carry out the research required to enable the LGA and Local Government in SA to respond effectively to the recently foreshadowed Commonwealth Government's Inquiry by the Productivity Commission into the capacity of Local Government to raise revenue from its own sources. |
Review of State Rating ConcessionsTo undertake a review of all aspects of the Rates and Land Tax Remission scheme and other rate relief options available and the impact on ratepayers on low and fixed incomes. |
Shared Services Implementation ProgramTo implement the Shared Service Delivery Framework endorsed by the LGA's October 2007 Annual General Meeting by identifying the scope and potential for implementation of a shared service model for all of the areas identified, enlisting the support of Councils to participate in the development of a shared services model for each service area and undertaking pilot case studies and business case analyses of each service. |
Support for Councils to Address Rating MattersTo provide rating support services to Councils which could include: - IT systems to support rating function ; Modelling of rating options ; Advisory services on Council rating processes ; Education and training for Council Members and staff ; Public education and awareness with a particular focus on 'derferment' options ; Development and printing services for a 'best practice' rating notice |
