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Northern Territory Local Government Grants Commission 1987 Report on Distribution of Funds under the Local Government Financial Assistance Act 1986



Northern Territory Local Government Grants Commission 1987 Report on Distribution of Funds under the Local Government Financial Assistance Act 1986

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Tabled Paper 228


Tabled Papers for 5th Assembly 1987 - 1990; Tabled Papers; ParliamentNT






Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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APPENDIX 1 NORTHERN TERRITORY LOCAL GOVERNMENT GRANTS COMMISSION SUMMARY OF DISTRIBUTION PRINCIPLES Effort Neutral Comparisons The assessment of revenue needs and expenditure disabilities will as far as it practicable be on an effort neutral basis, such as to prevent local governing bodies being advantaged or penalised on account of voluntary policy differences. Categories of Local Governing Bodies Two categories of local governing bodies will be used for the purpose of distributing funds i.e. Municipal Councils declared under Part II of the Northern Territory Local Government Act, and Community Governments Councils declared under Part VIII of the Act together with other local governing bodies declared under the provisions of the Local Government (Financial Assistance) Act 1986. Distribution of funds between categories of local Governing Bodies For 1987/88 funds will be allocated to the two categories of local governing bodies in the same proportion as in 1986/87. Weighting of Expenditure and Revenue Needs In assessing total relative financial needs, expenditure and revenue needs for each local governing body will be accorded natural weights. Standards of Comparison Appropriate average standards will be used for both revenue and expenditure assessments. Revenue Needs In assessing revenue needs differences in the financial capacity of ratepayers and residents to contribute to local government revenue requirements will be measured. Both positive and negative revenue needs will ordinarily be taken into account. Expenditure Needs Expenditure needs will be assessed by measuring the relative differences between local governing bodies in the demand for local government services (either by ratepayers or non-resident users) and in the unit cost of providing those services. Both positive and negative expenditure needs will ordinarily be taken into account. 14

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