Funding from Local Government Finance Authority: Financing Local Government
It is a statutory authority established for the benefit of Councils. It is not a part of the Crown, nor is it an agency or instrumentality of the Crown. • All local authorities are automatically members , but use of the LGFA for investment and loans is entirely voluntary. • All liabilities of the LGFA (including deposits) are guaranteed by the Treasurer of South Australia. • It captures about 95% of the market for LG loans and deposits.
: A symbiotic relationship
Local Government Finance Authority Act 1983 • Amounts held under subsection (2), together with interest accrued under subsection (3), will be applied for local government development purposes recommended by the LGA and agreed to by the Minister in accordance with principles agreed between the Minister and the LGA 31A—Tax equivalents [inserted into the Act in 1998] The Treasurer may require the Authority to make payments under this section of amounts that the Treasurer determines from time to time to be equivalent in effect to income tax and other taxes or imposts that the Authority does not pay to the Commonwealth but would be liable to pay under the law of the Commonwealth if it were constituted and organised in such manner as the Treasurer determines to be appropriate for the purposes of this section as a public company. Amounts determined to be payable under this section must be paid to a deposit account established with the Treasurer under section 21 of the Public Finance and Audit Act 1987 entitled the "Local Government Taxation Equivalents Fund" at times, and in a manner, determined by the Treasurer. Interest, at the standard commercial rate for accounts established under section 21 of the Public Finance and Audit Act 1987, will be payable on amounts held under subsection (2) and no fees or imposts will apply with respect to the maintenance or operation of the account.
Titles of approved projects 2012-14with the words ‘Local Government’ & ‘Councils’ omitted
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
TWO FUNDING ROUNDS PER YEAR • December – January: LGA projects • June – July: Other eligible applicants
Since 2010, up to 60% of funding reserved for LGA projects 25 2010 2011 2012 2013 25 25 9 25 25 14 14 13 14 9 16 17 13 7 16 # = number of projects approved
ELIGIBLE APPLICANTS • Local Governments; • Regional Local Government Associations; • Universities & other educational institutions; • Local Government Professional Bodies; • Local Government Unions; and • State or Federal Government Agencies.
JULY 2014 APPLICATIONS • 33 applications • Seeking total funding of $1.57 million • Proposals received from: • Single Council (11) • Group of Councils (6) • Professional Bodies/Networks (6) • Regional LGAs (3) • Universities (3) • Other (4) (State Agency, LGA Procurement, Bus SA, Union)
SEPT 2014 APPROVALS(LGA Board approval 25 September 2014) WHOLLY PARTLY APPROVED NOT APPROVED • 16 applications • From: • Single Councils (8) • Professional body (3) • Universities (2) • Union (1) • Regional group of Councils (1) • Commercial (1) • Funding sought: $955,000 • 10 applications • From: • Single Council (1) • Regional group of Councils (3) • Professional body (3) • Universities (1) • LGA Procurement (1) • State agency (1) • Funding approved $272,000 • 7applications • From: • Single Council (2) • Ad hoc Group of Councils (3) • Regional LGA (2) • Funding sought: $371,000 • Funding approved: $170,000
JULY 2014 external applications (samples) FULLY FUNDED REJECTED • SA Infrastructure design guidelines/standards - (IPWEA SA) • Enhance the "My Local Services" App 'Report It' function – (Cities of Salisbury; Charles Sturt); • A revised LG Ageing Strategy – (LG Community Managers Network); • Water Sensitive SA – (Adelaide & Mt Lofty Ranges Natural Resources M’gmt Board); • Transition to Safe Sustainable Public Lighting – (Cities of Charles Sturt; Salisbury; Marion; & Upper Spencer Gulf Common Purpose Group) • Economic Benefits of Regional Caravan Parks - (single Council) • Fine ACI0 - Asphalt Trials for Local Government (IPWEA SA) • A Guide for small lot gardens (single Council) • Asset Management System Implementation (single Council) • Eastern Regional Authority Economic Development Action Plan (group of Councils)
Abundant Species Management (Project 2014.09) Development of a state-wide strategy in managing abundant species, in particular corellas. ($20k funding, to LGA, contracting Uni SA) RECENT EXAMPLE
2014 Local Government Elections (Project 2014.06) LGA publications for candidates, voters and Councils. Includes all candidate profiles on a central LGA website, with links to each candidate’s own (optional) external website. RECENT EXAMPLE
RECENT EXAMPLE (Project 2011.33) What is the “Goldilocks” compaction rate? Not too tight (recyclables damaged) & not too loose (added expense to collect)? ($25k funding, led by State Agency, with 8 metro Councils and Visy, 2011)
RECENT EXAMPLE Strategic directions for stormwater management (Project 2013.07) Supporting the work program of the LGA's Water Issues Advisory Panel – ongoing research in stormwater management.
Understanding Maladministration (Project 2013.02) …the meaning of the term 'maladministration' and its practical implications for administration of Local Government in South Australia. RECENT EXAMPLE
RECENT EXAMPLE Attracting Skilled Workers to Regional Councils (Project 2012.23) Production of a documentary TV episode to a targeted audience to promote careers in regional Councils.
'My Local Services' App (Project 2012.05) The easy way to connect Councils and their communities through smartphones. The app puts information about all Council services at your fingertips: everything from waste collection, dog parks, public toilets, special events - even a 'report it' function for users to send pictures and reports back to the Council. RECENT EXAMPLE
RECENT EXAMPLE Revise and Update the Meeting Procedures Handbook (Project 2013.05)… for members of Councils and Council Committees, as well as Council officers who provide advice on meeting procedure.
6 COMMON REASONS FOR FAILED APPLICATIONS • Not consistent with over-arching principles – usually not “strategically for the benefit of Local Government as a whole” • Duplication or overlap with current or previous similar projects • Relatively low priority or not of interest/need to the sector as a whole
6 COMMON REASONS FOR FAILED APPLICATIONS • Does not demonstrate an up-to-date understanding of all facets of the issue from a Local Government perspective • Does not demonstrate a firm commitment from other funding bodies where joint funding proposals are proposed • Theoretical perspectives not shown to have strong links to practical applications in a Local Government setting
HOW TO SUCCEED • Read the Guidelines (available on LGR&DS website) • Research current LG Issues, Projects (helpful links on LGR&DS website) • Apply on time (deadlines on the LGR&DS website) • Get co-funding pledges from one or more SA Councils(not essential but carries weight) • Talk to relevant LGA SA Policy Officer
NEXT EXTERNAL FUNDING ROUND • Opens early - June 2015 • Closes late - July 2015 • Assessment - late August 2015 • Notification of result - late September 2015
Executive Officer: Shane Sody firstname.lastname@example.org www.lga.sa.gov.au/goto/research