Minutes of Special Council - 15 August 2019€¦ · 15/08/2019 · Mrs Zampedri, Darling Street, South Perth Question 1: My complaint is about Lot 22 Gerard Street, East Cannington.

Confirmed Minutes

Special Council Meeting

15 August 2019

The information contained in these Minutes are made available free to any member of the public.

Subject to copyright restrictions, members of the public may obtain copies of reports, attachments and tabled documents in accordance with the provisions of the Local

Government Act 1995.

NB: Plans are generally not permitted to be copied due to copyright restrictions.

SPECIAL COUNCIL MEETING CONFIRMED MINUTES 15 AUGUST 2019

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TABLE OF CONTENTS

ITEM SUBJECT PAGE NO

1. DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS/DISCLAIMER .......................................................................................... 1

2. ATTENDANCE ......................................................................................................... 2

2.1 Apologies .................................................................................................... 2

2.2 Approved Leave of Absence ....................................................................... 2

3. DISCLOSURE OF INTERESTS ............................................................................... 2

3.1 Declarations of Interest (Financial/Direct/Indirect) and Proximity ................. 2

3.2 Declarations of Impartiality .......................................................................... 2

3.3 Announcement by the Presiding Member (Without Discussion) .................. 3

3.4 Announcement by the Chief Executive Officer ............................................ 3

4. QUESTION TIME FOR PUBLIC ............................................................................... 4

5. RECEIVING OF PETITIONS, PRESENTATIONS AND DEPUTATIONS .................. 6

6. REPORTS ................................................................................................................ 6

6.1 Director Canning Community and Commercial .................................................... 7

CC-036-19 Monthly Financial Report June 2019 .................................................. 7

CC-037-19 2019-2020 Fees and Charges .......................................................... 12

CC-038-19 2019-2020 Rate Charges ................................................................. 29

CC-039-19 2019-2020 Rates Payment and Incentive Scheme ........................... 39

CC-040-19 2019-2020 Annual Budget ............................................................... 50

7. CONFIDENTIAL REPORTS ................................................................................... 58

8. CLOSURE .............................................................................................................. 58

CONFIRMED MINUTES OF THE SPECIAL COUNCIL MEETING THURSDAY 15 AUGUST 2019

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CONFIRMED MINUTES OF SPECIAL COUNCIL MEETING

HELD IN THE COUNCIL CHAMBERS ON THURSDAY 15 AUGUST 2019

1. DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS/DISCLAIMER

The Mayor advised “I now declare the Special Council Meeting of 15 August 2019 open at 6.02pm. We would like to acknowledge the Wajuk (Wudjyuk) people, the traditional owners of the land. We would also like to pay our respect to Elders, both past and present.

The Chief Executive Officer advised “May I ask everyone present this evening to turn off all electronic devices (mobile phones, iPads, and Tablets) for the duration of the Meeting. Tonight’s Council Meeting is being recorded. A copy of the audio recording shall be available on the City’s website within 72 hours of the meeting.”

The Chief Executive Officer advised that the remainder of the Disclaimer could be seen on the screen. “Council Meetings are public meetings, and any information you provide will be recorded, and may be publicly accessible. The Council Chambers are not a Parliament, and Parliamentary Privilege does not apply. Elected Members, Staff, and the general public, risk being held personally liable if their comments are defamatory, or breach any duty of confidentiality. Statements made during Council Meetings are solely those of the person making them. Nothing expressed at a Council Meeting can be attributed to the City, unless it is adopted by a resolution of Council. The Confirmed Minutes of a Council Meeting are the official record of that Council Meeting. Recording of Council Meetings must not be copied, republished, or reproduced without the City’s express permission.”


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2. ATTENDANCE

Mr P Ng Mayor Cr C Cunningham (arrived at 6.32pm) Deputy Mayor Cr G Barry Mason Cr M Hall Nicholson Cr P Hall Bannister Cr B Kunze Bannister Cr Y Ponnuthurai Beeliar Cr T Porter Nicholson Cr S Saberi Beeloo

STAFF

Mr A Kyron Chief Executive Officer Mr G Adams Director Canning Community and Commercial Mr G Bride Director Canning Sustainable Development Mr W Bow Director Canning Environment Ms K Bateman Executive Manager Governance Mr S Leeson Executive Manager Business Canning Ms K Cornish Supervisor Governance Ms S Johnson Governance Officer Members of the Public

There were three members of the public and no member of the press in attendance. Staff Members in Public Gallery Mrs S Browne Executive Manager Stakeholder Relations Mrs K Hayward Executive Manager People Mr H Attawala Manager Finance and Asset Management Mr B Sharp Senior Analyst/Project Manager Mrs R Manno PR & Marketing Advisor Mr D Ford Senior Parks Services Officer

2.1 Apologies

Cr J Jacobs Mason

2.2 Approved Leave of Absence

Leave of Absence for this meeting was previously granted to Cr Lindsay Holland.

3. DISCLOSURE OF INTERESTS

3.1 Declarations of Interest (Financial/Direct/Indirect) and Proximity

Nil.

3.2 Declarations of Impartiality

Nil.


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3.3 Announcement by the Presiding Member (Without Discussion)

The Mayor announced the following:

“I would like to express my sincere thanks to the staff who have given up their weekends and evenings to guide the Councillors through the working of this Budget.

Many questions and ideas were taken up. Thanks to the Councillors too who participated in the discussion vigorously.

I would also like to inform you that the former Mayor and Freeman of the City, Dr Mick Lekias AM, just celebrated his 88th birthday this week. The City sent our love and good wishes to him”.

3.4 Announcement by the Chief Executive Officer

The Chief Executive Officer announced the following:

“Special Council Meeting: Annual Budget

Background

- To support and enable a welcoming and thriving City, the City has developed a balanced budget that remains consistent with the City’s Long Term Financial Plan.

- Both Councillors and staff have worked over weekends and after hours and shown dedication in producing a collaborative budget that benefits our community.

- The budget maintains a high level of service and continued development of City infrastructure for our community and we have taken into consideration, the financial pressures on households. The modest increase aligns with the City’s Rating Strategy and for the average residential property, the all-inclusive increase in rates and charges equates to $0.72c per week.

- The City remains one of the lowest rating Councils in the Perth metropolitan area.

- Our 2019/2020 budget is $146 million:

- $24.2 million to provide and improve our community facilities.

- $16 million to manage urban forests, parks, sporting reserves and sustainability initiatives.

- $1.9 million for local events and celebrating our diversity.

- $3.6 million dedicated to community safety.

- $16 million to maintain and expand transport infrastructure.

- $4.9 million to build our City Centre.

- $15.9 million to manage our waste and recycling.

- Another year of delivery and consolidation, the City will complete four major projects within the City Centre including Cecil Avenue West, Wharf Street Basin, Lake Street Urban Stream and stage two of Southern Link Road.

- The Bentley Regeneration project will continue to thrive with the completion of upgrades at Hillview Park and Sill Park as well as works Dumond, Warwick and Wyong Parks.

- Year two of the Burrendah Park Precinct Works will continue to evolve with additional works in the expansion of the Willetton Basketball Stadium.


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- The City is supporting seniors and pensioners by offering a 50% discount on rates, emergency services levy’s and underground power plus further discounts including domestic rubbish charges and animal licensing fees.

- The City will continue to offer ratepayers vouchers to use at our amazing facilities.

- They were just a few highlights and upon endorsement of the annual budget, a more comprehensive list of projects will be made available on the City’s website.

- I encourage you to support this considered budget that focuses on the needs of our community and a welcoming and thriving City”.

4. QUESTION TIME FOR PUBLIC

The Mayor opened question time at 6.08pm.

The Chief Executive Officer advised that “The time set aside for public questions is 15 minutes, which may be extended if necessary. For recording purposes please state your name and address and then proceed to ask your question.

If an answer cannot be provided at tonight’s Meeting, the Question will be taken on notice, and an answer will be provided at the next Ordinary Council Meeting. In accordance with Policy AD.02, members of the public who have registered their interest to ask questions with the City’s Administration, shall be called upon in the order in which registrations were received. Written questions will precede verbal questions.

As this is a Special Council Meeting, questions must relate to items on the Agenda. The Mayor advised that “The City has received questions for tonight’s meeting from Mrs Zampedri of Darling Street, South Perth.


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Mrs Zampedri, Darling Street, South Perth Question 1: My complaint is about Lot 22 Gerard Street, East Cannington. My

rates have gone up from last year from 44c in the dollar to 59c in the dollar and the land is vacant. I have owned this land since 1959, it is one and a half acres. Years ago I couldn’t do anything with the land because there was no sewerage. Over the years my husband built a couple of houses, 55 and 57 Gerard Street, on either side of the block and left a vacant block in the middle. Over the years, I have had numerous enquiries with the Council trying to subdivide the land and it was never possible because of Scheme No. 21. Council did not let me subdivide in any way. I could have put through a subdivision myself from Gerard Street and formed a cul de sac, but I wasn’t allowed to do it because of Scheme No. 21. Now I am being punished with the hefty rates that have gone up to 59c in the dollar. This is what I am querying with you Mayor.

Response 1: The Executive Manager Finance advised that there are two issues,

one with regards to the rating strategy, and he would provide some information on that, and the second is to do with the Town Planning Scheme. Unfortunately, he is unable to provide the specifics around the ability to subdivide the land etc.

The City’s rating strategy has implemented differential rating, and as you are aware there is the residential, non residential and unimproved land. There are several reasons why the unimproved rate in the dollar is higher – the unimproved property can become unkempt, there can be additional gully aducting etc. Unimproved properties, which can be kept for land banking, also have a much lower gross rental value. As a result, their base valuation compared to other developed properties is much lower. They can be contributing far less towards the development of infrastructure compared to their neighbours. The unimproved property itself, actually benefits from those developments around them and can actually have an increase in the value of that land. It is a common strategy that local governments use to bring about some equity from these unimproved properties in comparision to their developed neighbours.

As to the restrictions around the Town Planning Scheme and subdivisions, the City may have to take that on notice.

Questions 2: So there is nothing that can be done about it then, will you contact me

at a later date? Response 2: The Executive Manager Finance advised that should the budget go

through tonight, there would be a positive differential on unimproved land, and unfortunately the rates would increase.

Question 3: So you suggest I go and see the Planning Department again?


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Response 3: The Director Canning Sustainable Development advised that without

having the exact lot details available, we are unable to comment on why you have been unsuccessful in the past in subdividing the property. Town Planning Scheme No. 21 does have a logical road network and sometimes until you have land developed either side, there might be difficulties in proceeding with a subdivision. The City would be happy to meet with you early next week and go over the particular property details and look into why the past subdivision process hasn’t been successful. Maybe things have changed since your last subdivision proposal. The City can meet with you to discuss.

Mrs Zampedri made a statement that all these years have gone by and now I am 82 years old and really I’m not worried about a subdivision anymore because it is all becoming too much for me, as you can understand.

At the conclusion of the meeting the Director Sustainable Development arranged to meet with Mrs Zampedri to discuss the matters she had raised.

As there were no further questions from members of the public the Mayor closed Public Question time at 6.17pm.

5. RECEIVING OF PETITIONS, PRESENTATIONS AND DEPUTATIONS

Nil.

6. REPORTS


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CC-036-19 Monthly Financial Report June 2019 CC-036-19

6.1 Director Canning Community and Commercial

CC-036-19 Monthly Financial Report June 2019

PROGRAM: Canning Community and Commercial

SUB PROGRAM: Business Canning

FILE REF: Q19/248

REPORT DATE: 14 August 2019

REPORTING OFFICER: Hitesh Attawala - Manager Finance & Asset Management

RESPONSIBLE OFFICER: Garry Adams - Director Canning Community and Commercial

Strategic Plan Theme: LEAD - Accountable, responsible and forward-thinking

administration. Community Goal: Effective leadership and good governance. Council Strategy: Prudent financial management and long term financial

sustainability.

Authority/Discretion: Legislative: Includes adopting Local Laws, Town Planning Schemes and Policies. Review when Council reviews decisions made by Officers.

Attachments: 1. Monthly Financials as at 30 June 2019 (D19/104417). 2. Investments as at 30 June 2019 (D19/103958). (Large

Attachments) 3. Warrant Listing as at 30 June 2019 (D19/96308). (Large

Attachments) 4. Small Debt Write Off - June 2019 (D19/104403).

(Confidential)

5. List of Rates Exemptions Granted & Declined - June 2019 (D19/104407).

In Brief:

The Monthly Financial Report provides details of the City of Canning’s (‘the City’) current financial position in relation to the 2018-2019 Annual Budget, including the reporting of material variances (10% or $50,000, whichever is greater), in the Statements of Financial Activity. This report also details the City’s portfolio of investments, payments made during the month, and the exercise of Officer Delegations related to the City’s financial operations. The City is in a sound financial position, and there are no significant issues of note to be brought to the attention of Council.


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COUNCIL DECISION

MOVED Cr Porter, SECONDED Cr Ponnuthurai, that Council:

1. Receives the Monthly Financial Report for the period ended 30 June 2019 (Attachment 1).

2. Receives the Monthly Investment Report for the period ended 30 June 2019 (Attachment 2).

3. Receives the List of Accounts Authorised for Payment Under Delegated Authority for the period ended 30 June 2019 for the amount totalling $14,317,591.56 (Attachment 3).

4. Receives the list of debtors written off under Delegation No. 40. (Attachment 4)

5. Receives the list of rates exemptions granted under Delegated Authority number 45. (Attachment 5).

CARRIED UNANIMOUSLY 8/0

Relevant Council Resolutions

Council Meeting and Date Report No Decision

SCM 28 August 2018 CC-040-18 2018-2019 Annual Budget

Adopted

OCM 18 September 2018 CC-042-18 Budget review as at 31 August 2018

Adopted

OCM 11 December 2018 CC-060-18 Annual Report and Financial Statements 2017-2018

Adopted

OCM 19 February 2019 CC-002-19 Budget review as at 31 December 2018

Adopted

OCM 15 March 2019 CC-015-19 Purchase of 199-203 Sevenoaks Street, Cannington

Adopted

OCM 16 April 2019 CC-020-19 Budget Review as at 28 February 2019

Adopted

OCM 18 June 2019 CC-030-19 Budget Review as at 30 April 2019

Adopted

BACKGROUND

1 The reporting of monthly financial information is a requirement under Section 6.4 of the Local Government Act 1995 (‘Act’) and Regulation 34 of the Local Government (Financial Management) Regulations 1996 (‘Regulations’).

2 As part of the annual budget process, Council has adopted 10% or $50,000, whichever is greater; to be used for reporting material variances in the Statements of Financial Activity. Accordingly, any program level variances less than $50,000 have not been reported. The Statements of Financial Activity for June 2019, included as Attachment 1, detail material variances and makes comment.

3 The report also includes Attachment 2 which details the City’s investments, in accordance with Policy AF306 Investments.

4 Pursuant to Regulation 13 of the Regulations, a list of payments made from the Municipal and Trust accounts is required to be presented to Council on a periodical basis. These details are included as Large Attachment 3. In accordance with Regulation 12 of the Regulations, the Chief Executive Officer has delegated authority to make these payments.


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5 The report also includes delegation exercised by delegates/sub-delegates within the month in respect to any award of tender, minor debt write-off and rates exemption. Since the last report, the City wrote off various small balances as part of end of year closure for the year 2018-2019. These details are included as Confidential Attachment 4.

6 Details of rates exemptions granted since the last Council report have been included in Attachment 5.

DETAILS

7 The Statement of Financial Activity for each month provides details of the annual and year-to-date budget position versus the actual position, at a particular point in time.

8 Details of major material variances are reported at program level, as defined by the Regulations.

CONSIDERATIONS

Legal Compliance

9 Sections 6.26(2) (g) and 6.4 of the Act and associated Regulations and Section 6.16 of the Act.

Policy Implications

10 The City’s Annual Budget for the year 2018-2019, as adopted by Council, is set within the parameters of Policy FM.05 Budget Preparation.

11 Policy AF306 Investments outlines principles of management of surplus funds and requires reporting of the City’s investment portfolio on a monthly basis.

12 Expenditure from Municipal and Trust Funds have been incurred in accordance with Policy AF301 Procurement of Goods and Services.

Financial Considerations

Business Plan

13 Business Canning. Financial Reporting:

a) To prepare the City’s Annual Report, Annual Budget and Long Term Financial Plan.

b) To oversee acquittals for external agencies.

c) To prepare the City’s accounts for audit.

14 Current material variances affecting the City’s 2018-2019 Annual Budget are detailed within Attachment 1.

Internal Budget

Asset Management

15 Not applicable.

Sustainability Considerations

16 The new Sustainability policy was adopted 18 June 2019. The City is now working towards determining a set of City-wide targets, which will provide measurable criteria for sustainability progress assessment.


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Consultation

17 Not applicable.

Other Considerations or Risks

18 Council approved the City’s Annual Budget for the year 2018-2019 at the Ordinary Council Meeting on 28 August 2018, via report CC-040-18. The Annual Budget was adopted with a balanced budget.

19 The latest budget review report, Report CC-030-19 Budget Review as at 30 April 2019, was adopted at the Ordinary Council Meeting of 18 June 2019. Based on this report, it was estimated that the City will have an end of year deficit of $1.086 million.

20 The attached draft financial statements (refer Attachment 1) show overall surplus of $3.64million which was mainly on account of a Federal Assisted Grant (relating to the year 2019-2020) received in advance and unspent funds on projects that are to be carried forward. The table below shows the breakdown of the reported surplus.

$ Note

Actual Surplus as per the statement 3,636,512

Less: FAG grant for 2019-20 received in advance (1,689,534) Refer Note 1

Less: Estimated Carry Forwards (net of revenue and

reserve transfers)

(4,108,659) Refer Note 2

30 June 2019 Year End position - Deficit (2,161,681)

The table below summarise the major reasons contributing to the end of year deficit of $2.16 million.

Budget Item $ Note

Canning Lodge Deficit (857,000)

Reduced interest earning on investment (70,000)

Reduced interim rates (150,000)

Reduced revenue for leisure services (250,000) Refer Note 3

Savings from library refurbishment project 156,000

Savings from fleet purchases 85,000

30 June 2019 Year End Position – Deficit as

adopted by the Council as per CC-030-19 at the

OCM held on 16 April 2019

(1,086,000)

Further revenue shortfall for leisure services (358,000) Refer Note 3

Transfer to Legislative Reserve to comply with

changes in Accounting Standard 1058 in relation to

Prepaid Rates

(717,000) Refer Note 4

30 June 2019 Year End position - Deficit (2,161,000)

Note 1

Financial Assistance Grants – The Federal Government has again distributed early the local government 2019/2020 grants. This funding forms part of next year’s City budget.

Note 2

Carry Forward Projects – Projects not yet completed as part of the 2018-2019 Annual Budget. To be the subject of a further report to Council in September 2019.


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Note 3

Leisureplex - Further shortfalls in revenues against budget forecasts due to:

a) Extended close down of the Riverton Gym to undertake refurbishment works due to shipping of flooring materials.

b) Further unforeseen pool closures causing cancellation of swimming classes and the issuing of credits.

c) Change in sales approach from discounted annual memberships, to fortnightly direct debits.

Note 4

Prepaid rates – A one off adjustment required due to change in accounting standard AASB 1058 Income of Not for Profit Entities, which has resulted in a reversal of the previous

accounting treatment from revenue at the time of receipt, to now be classified as a liability until earnt. An amount of $717,000 has been transferred to the City’s Legislative Reserve to offset the impact of this change against the 2019-2020 City Budget.

21 The reported surplus is a draft surplus as presented at the time of preparation of this report and is subject to further changes on account of end of year closing journals, accruals, balance day adjustments and transfer to and from reserves. The reported surplus and financial statements will also be the subject of year end external audit, expected to be completed in November 2019.

COMMENT

22 The City’s overall financial position is sound.

23 It should be noted that the Warrant of Payments is a system generated report which relies on supplier categorisation. The descriptions used best represent the City’s typical procurement and purchases; however some actual items purchased may differ.

24 As per the Regulations, there is no requirement for inclusion of commitments on account of purchase orders in the monthly financial report however, for better reporting the City has reported commitments in this financial report. No commitments have been reported in this report being the last report of the financial year as all outstanding commitments for contractual obligations were rolled into the new financial year.

VOTING REQUIREMENT

25 Simple majority.

AGENDA BRIEFING COMMENT

26 Cr Barry raised the variances between 31 May and 1 June and asked what the differences were.

The Other Property and Services negative variance has continued whilst overheads charges the new system and chart of account, had not been processed in May or at the time the June report was produced. This in turn leads to a positive variance in Capital expenditure as costs have not been transferred between programs. The positive balance in capital expenditure also relates to projects still in progress which will be carried over into the 2019-2020 financial year.

.


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CC-037-19 2019-2020 Fees and Charges CC-037-19

CC-037-19 2019-2020 Fees and Charges



FILE REF: Q19/164


REPORTING OFFICER: Steve Leeson - Executive Manager Business Canning


Strategic Plan Theme: LEAD - Accountable, responsible and forward-thinking administration.

Community Goal: Effective leadership and good governance. Council Strategy: Prudent financial management and long term financial

sustainability.

Authority/Discretion: Legislative: Includes adopting Local Laws, Town Planning

Schemes and Policies. Review when Council reviews decisions made by Officers.

Attachments: 1. Proposed Schedule of Fees and Charges 2019 - 2020 (D19/103434). (Large Attachments)

In Brief:

As part of the 2019-2020 Annual Budget, the purpose of this report is to adopt the 2019-2020 Schedule of Fees and Charges inclusive of waste removal charges, a service charge for 24 hour property surveillance and security throughout the City of Canning, and to impose service charges that represent the annual loan repayments to be met by ratepayers in the defined areas of Bentley East, Wilson West and Wilson East, for the installation of underground power as their previous preference for a ten year instalment plan.

The Schedule of Fees and Charges also includes discretionary fees and charges not imposed under legislation. This report recommends establishing a Chief Executive Officer delegation to effect differing short term promotional pricing on such fees and charges that are not imposed.


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COUNCIL DECISION

MOVED Cr Porter, SECONDED Cr M Hall, that Council:

1. Pursuant to Section 6.13 of the Local Government Act 1995, resolve to impose a rate of interest of 3.25% on sundry debt owed to the City of Canning, that is outstanding for more than 45 days.

2. Pursuant to Section 6.16 of the Local Government Act 1995; adopts the City of Canning ‘Schedule of Fees and Charges 2019-2020’ included as Attachment 1.

3. Pursuant to Section 6.38(1) of the Local Government Act 1995 and Regulation 54 of the Local Government (Financial Management) Regulations 1996, impose service charges for:

a) Property surveillance and security of $56.30 (GST Free) on occupiers of land within the District of the City of Canning.

b) Underground electricity on the portions of the District in the City of Canning, described as the defined areas of:

i) Bentley East

ii) Wilson West

iii) Wilson East

as detailed within this report.

4. Pursuant to Section 5.42 of the Local Government Act 1995, delegates to the Chief Executive Officer, the setting of discounts to the adopted Schedule of Fees and Charges 2019-20, to facilitate discounting of non-imposed fees and charges, in accordance with Section 6.12(1)(b) of the Local Government Act 1995.

CARRIED BY ABSOLUTE MAJORITY 8/0



28 August 2018 CC-037-18 2018 – 2019 Fees and Charges

1. Pursuant to Section 6.16 of the Local Government Act 1995; adopts the Fees and Charges detailed in the ‘Schedule of Fees and Charges 2018-2019’.

2. Pursuant to Section 6.38(1)

of the Local Government Act 1995 and Regulation 54 of the Local Government (Financial Management) Regulations 1996, impose service charges for:

a) Property surveillance and

security of $55.50 (GST Free) on occupiers of land within the District of the City of Canning.

b) Underground electricity on

the portions of the District in


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the City of Canning described as the defined areas of:

i) Bentley East ii) Wilson West iii) Wilson East as detailed within this report.

BACKGROUND

1 Section 6.15 of the Local Government Act 1995 (‘the Act’) states that local governments may

receive revenue or income from several sources (including ‘fees and charges’), as well as any other source authorised by the Act or other written law.

2 Section 6.16 of the Act and Regulation 25 of the Financial Management Regulations 1996 (‘Financial Management Regulations’), allow a local government to “impose and recover a fee or a charge for any goods or services it provides or proposes to provide”. Under Section

6.38 of the Act, a service charge may be imposed for such prescribed services over land. The meaning of imposed is considered as compelled by law.

3 Not all City fees are imposed under the Act. However, under section 6.16, all fees should be in the Fees Schedule. Consideration bargained for in the exchange of goods and/or services by consenting parties is not an imposed fee or charge.

4 The 2019-2020 Annual Budget has been prepared in the same format as previous years, and identifies funding requirements for waste removal, security services and underground power. The 2019-2020 Rates Notice issued to ratepayers will disclose the amount ratepayers are required to contribute towards these three items, by means of separate fee and or service charge. Charges will be applicable to all properties and owners within the City, with the only exception being state and local government unleased land. Properties subject to rate exemptions will incur the fee and or service charges.

5 The City currently provides a 24 hour daily patrol service throughout the district.

6 The City currently has three underground electricity projects for which partial costs are being repaid against fixed term loans. These payment arrangements were at the nomination of landowners at the time the projects commenced.

DETAILS

7 Annual Budget Note 16 - Fees and Charges Information, details total revenue for fees and charges for each program as required by Regulation 25 of the Local Government (Financial Management) Regulations 1996 (‘Regulations’).

Waste Removal

8 Included as Attachment 1, are the proposed City wide Schedule of Fees and Charges for the 2019-2020 financial year. Incorporated into these fees and charges are the waste removal fees for 2019-2020 as listed in the table below. A differentiated fee was introduced for waste removal for rate exempt properties in the 2018-2019 Budget and is included again in the 2019-2020 Budget.


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2018-19 2019-20

Residential/Non Residential $374.00 30,982 $381.50 31,707

Exempt $494.00 153 $501.50 320

Pensioner/Senior $315.00 7,232 $322.50 7,427

Pensioner/Senior Exempt $435.00 199 $442.50 265

Additional Service *GST $411.40 1,115 $419.65 735

Additional Service Exempt *GST $543.40 61 $551.65 90

Additional Yellow * GST $19.80 36 $19.80 178

39,778 40,722

9 The above charges represent an increase of $7.50 from those set in the previous financial year. The majority of this increase relates directly to the City’s Strategic Waste Management Plan, and expected additional costs for management of recyclable materials collected and future remediation of landfill sites across the City.

10 The services provided for the waste removal fee remain as follows:

a) Weekly rubbish collection.

b) Fortnightly recycling collection.

c) Two hard waste collections.

d) Two green waste collections.

e) Waste transfer station.

11 The fee for a second fortnightly recycling service will remain at $19.80 (inclusive of GST).

Property Surveillance and Security

12 During 2019-2020, it is budgeted that the provision of this service will cost $56.30 in operational expenditure and capital replacements. The service budget is detailed below:

Adopted

Actual Draft

Budget Description (estimated) Budget

2018-2019 Property Surveillance and Security 2018-2019 2019-2020

$ $ $

2,203,714 Income 2,305,030 2,359,252

0 Service charge income (charge per property) - -

1,577 Surplus Funds Carried Forward 96,454 -

2,205,291 Other income (interest earnings) 2,401,484 2,359,252

(9,180) Subscriptions (GPS / After Hour Service) (5,410) (5,000)

(11,679) Administration (5,053) (11,821)

(112,386) CCTV and Community Safety Initiatives (69,469) (151,703)

(17,200) Non Recurrent Items (Vehicle replacement) (42,537) (39,196)

(101,388) Vehicle operating and misc. equipment replacement (77,629) (105,000)

(1,951,881) Employee related expenditure (1,996,522) (2,009,169)

(2,203,714)

(2,196,619) (2,321,890)

1,577 Unspent/(Overspent) Balance to / (from) Reserve 204,864 37,362


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* Any surplus or deficit amounts will be offset or recovered in later years. The actual amounts are subject to confirmation. Incomplete 2018-2019 projects and safety initiatives are carried forward, and the budget amended accordingly as part of the budget review process.

13 In accordance with Section 6.38 (5)(b) of the Act, if the City were to receive more money than it requires from the annual security charge imposed, any surplus will be used to offset against future years’ charges, along with the purchase of plant and equipment used for the service. A reserve was established as part of the 2015-2016 Annual Budget for this purpose. Underground Electricity

14 The three underground electricity projects that partial costs are being repaid against fixed term loans, at the nomination of landowners at the time the projects commenced, are as follows:

Bentley East

15 This charge is for those properties within the defined boundary of Bentley East that are contributing towards the costs of installing underground power, by way of instalments over 10 years. This is the ninth year of the 10 year loan period.

Description of Land

16 The properties bounded by Coolgardie Street, Albany Highway, Manning Road and the Brownlie Towers Precinct – (includes properties connected on both sides of Manning Road but does not include the Brownlie Towers Precinct).

17 The project involved the design, installation and commissioning of an underground electricity supply distribution system. The project included the conversion of all existing overhead customer service connections to underground, between the property boundary and the property buildings.

18 The City borrowed the sum of $1,941,857 for a term of 10 years to fund the Bentley East project.


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19 The service charges to be imposed for the 2019-2020 financial year are defined as:

Annual

Annual

Service Service

Charge Description Charge

2018-2019 Bentley East – Underground power instalments 2019-2020

$

$

471.51

(BE1) Property with overhead external and overhead internal power connection.

471.51

136.44

(BE1A) Property with overhead external and overhead internal power connection with 85% discount.

136.44

407.09

(BE1B) Property with overhead external and overhead internal power connection with $100 service charge due to multiple dwellings.

407.09

400.64

(BE1C) Property with overhead external and overhead internal power connection with $50 service charge due to multiple dwellings.

400.64

432.86

(BE2) Property with overhead external and underground internal power connection.

432.86

97.79

(BE2A) Property with overhead external and underground internal power connection with 85% discount.

97.79

407.09

(BE2B) Property with overhead external and underground internal power connection with $100 service charge due to multiple dwellings.

407.09

400.64

(BE2C) Property with overhead external and underground internal power connection with $50 service charge due to multiple dwellings.

400.64

394.21

(BE3) Property with underground external and underground internal power connection.

394.21

59.13

(BE3A) Property with underground external and underground internal power connection with 85% discount.

59.13

59.13

(BE3D) Property with underground external and underground internal power connection with 85% discount

59.13

865.72

(BEM2A) Two dwellings on one property with overhead external and overhead internal power connection.

865.72

827.06

(BEM2B) Two dwellings on one property with overhead external and underground internal power connection.

827.06

788.40

(BEM2C) Two dwellings on one property with underground external and underground internal power connection.

788.40

118.26

(BEM2D) Two dwellings on one property with underground external and underground internal power connection with 85% discount.

118.26

195.58

(BEM2E) Two dwellings on one property with overhead external and overhead internal power connection with 85% discount.

195.58

1,259.93

(BEM3A) Three dwellings on one property with overhead external and overhead internal power connection.

1,259.93

1,221.27

(BEM3B) Three dwellings on one property with overhead external and underground internal power connection.

1,221.27

1,182.62

(BEM3C) Three dwellings on one property with underground external and underground internal power connection.

1,182.62

1,615.47

(BEM4B) Four dwellings on one property with overhead external and underground internal power connection.

1,615.47

2,009.67

(BEM5B) Five dwellings on one property with overhead external and underground internal power connection.

2,009.67

2,403.88

(BEM6B) Six dwellings on one property with overhead external and underground internal power connection.

2,403.88

2,365.21

(BEM6C) Six dwellings on one property with underground external and underground internal power connection.

2,365.21

2,798.08

(BEM7B) Seven dwellings on one property with overhead external and underground internal power connection.

2,798.08


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Annual Annual

Service Service

Charge Description Charge 2018-2019 Bentley East – Underground power instalments 2019-2020

$ $

2,759.42

(BEM7C) Seven dwellings on one property with underground external and underground internal power connection.

2,759.42

3,192.28

(BEM8B) Eight dwellings on one property with overhead external and underground internal power connection.

3,192.28

20 The service charge for the area described as Bentley East was imposed on property owners for the first time in the 2011-2012 financial year. Property owners were given a once only opportunity to make a lump sum payment which reduced the amount of loan funds to be raised. Those who elected not to make a lump sum payment will make annual payments over a 10 year period which commenced in the 2012-2013 financial year.

21 Where a property has been subdivided after the 2011-2012 initial imposition of the underground power levy, the charge will be proportionate depending on the number of subdivided units created.

22 The application of the service charge levied is summarised as follows:

Adopted

Draft

Budget Description Actual Budget

2018-2019 Bentley East – Service charge application 2018-2019 2019-2020

$

$ $

260,210 Service Charge Raised 263,268 253,560

0 Unspent/(Overspent) Balance Carried Forward 0 0

260,210

263,268 253,560

Less Expenses

(207,259) Loan Repayment Principal. (207,259) (217,974)

(52,951) Loan Repayment Interest. (51,803) (35,586)

(260,210)

(259,062) (253,560)

0 Unspent/(Overspent) Balance Carried Forward 4,206 0

*Any surplus or deficit amounts will be offset or recovered in later years. The actual amounts are subject to confirmation.

23 Wilson West

This charge is for those properties within the defined boundary of Wilson West that are contributing towards the costs of installing underground power by way of instalments over 10 years. This is the ninth year of the 10 year loan period.

24 Description of Land

The properties bounded by Centenary Avenue, Manning Road and Leach Highway. This includes properties connected on both sides of Leach Highway.

25 The project involved the design, installation and commissioning of an underground electricity supply distribution system. The project included the conversion of all existing overhead customer service connections to underground, between the property boundary and the property buildings.

26 The City borrowed the sum of up to $1,923,668 for a term of 10 years to fund the Wilson West project.


Page 20



Page 21


27 The service charges to be imposed for the 2019-2020 financial year are defined as:

Annual

Annual

Service

Service


2018-2019 Wilson West – Underground power instalments 2019-2020

$ $

503.30

(WW1) Property with overhead external and overhead internal power connection.

503.30

161.20

(WW1A) Property with overhead external and overhead internal power connection with 85% discount.

161.20

415.91

(WW1B) Property with overhead external and overhead internal power connection with $100 service charge due to multiple dwellings.

415.91

452.88

(WW2) Property with overhead external and underground internal power connection.

452.88

73.81

(WW2A) Property with overhead external and underground internal power connection with $100 service charge due to multiple dwellings with 85% discount.

73.81

415.91

(WW2B) Property with overhead external and underground internal power connection with $100 service charge due to multiple dwellings.

415.91

409.19

(WW2C) Property with overhead external and underground internal power connection with $50 service charge due to multiple dwellings.

409.19

402.47 (WW3) Property with underground external and underground internal power connection. 402.47

60.37

(WW3A) Property with underground external and underground internal power connection with 85% discount.

60.37

60.37

(WW3D) Property with underground external and underground internal power connection with 85% discount.

60.37

110.79

(WW3E) Property with overhead external and underground internal power connection with 85% discount.

110.79

905.76

(WWM2A) Two dwellings on one property with overhead external and overhead internal power connection.

905.76

855.34

(WWM2B) Two dwellings on one property with overhead external and underground internal power connection.

855.34

804.93

(WWM2C) Two dwellings on one property with underground external and underground internal power connection.

804.93

1,308.23

(WWM3A) Three dwellings on one property with overhead external and overhead internal power connection.

1,308.23

1,257.81

(WWM3B) Three dwellings on one property with overhead external and underground internal power connection.

1,257.81

1,207.40

(WWM3C) Three dwellings on one property with underground external and underground internal power connection.

1,207.40

1,710.70

(WWM4A) Four dwellings on one property with overhead external and overhead internal power connection.

1,710.70

1,609.87

(WWM4C) Four dwellings on one property with underground external and underground internal power connection.

1,609.87

2,012.32

(WWM5C) Five dwellings on one property with underground external and underground internal power connection.

2,012.32

2,465.21

(WWM6B) Six dwellings on one property with overhead external and underground internal power connection.

2,465.21


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Annual Annual

Service Service


2018-2019 Wilson West – Underground power instalments 2019-2020

$ $

3,270.14

(WWM8B) Eight dwellings on one property with overhead external and underground internal power connection.

3,270.14

4,829.58

(WWM12C) Twelve dwellings on one property with underground external and underground internal power connection.

4,829.58

6,892.34

(WWM17B) Seventeen dwellings on one property with overhead external and underground internal power connection.

6,892.34

7,345.21

(WWM18A) Eighteen dwellings on one property with overhead external and overhead internal power connection.

7,345.21

8,150.14

(WWM20A) Twenty dwellings on one property with overhead external and overhead internal power connection.

8,150.14

13,281.36

(WWM33C) Thirty-three dwellings on one property with underground external and underground internal power connection.

13,281.36

13,683.82

(WWM34C) Thirty-four dwellings on one property with underground external and underground internal power connection.

13,683.82

28 The service charges for the area described as Wilson West was imposed on property owners for the first time in the 2011-2012 financial year. Property owners were given a once only opportunity to make a lump sum payment, which reduced the amount of loan funds to be raised. Those who elected not to make a lump sum payment make annual payments over a 10 year period, which commenced in the 2012-2013 financial year.

29 Where a property has been subdivided after the 2011-2012 initial imposition of the underground power levy, the charge will be proportionate depending on the number of subdivided units created.


Adopted

Draft


2018-2019 Wilson West – Service charge application 2018-2019 2019-2020

$

$ $



Less Expenses

(205,317) Loan Repayment Principal (205,317) (215,932)

(51,318) Loan Repayment Interest (51,319) (35,253)

(256,635)

(256,636) (251,185)

0 Unspent/(Overspent) Balance Carried Forward (1,217) 0


31 Wilson East

This charge is for those properties within the defined boundary of Wilson East that are contributing towards the costs of installing underground power by way of instalments over 10 years. This is the seventh year of the 10 year loan period.


Page 23


Description of Land

32 The properties are within an area bounded by Leach Highway, Manning Road and the Canning River, best depicted within the scheme map below.

33 The project involves the design, installation and commissioning of an underground electricity supply distribution system. The project included the conversion of all existing overhead customer service connections to underground between the property boundary and the property buildings, except those on Manning Road.

34 The City borrowed the sum of $2,478,754 for a term of 10 years to fund the above project.


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35 The service charges to be imposed for the 2019-2020 financial year are defined as :

Annual Annual

Service Service


2018-2019 Wilson East - Underground power instalments 2019-2020

$ $

502.43 (WE1) Property with overhead external / internal power connection

($600).

502.43

444.55 (WE1B) Property with overhead external / internal power connection

with $100 service charge due to multiple dwellings.

444.55

467.70 (WE2) Property with overhead external and underground internal

power connection ($300).

467.70

444.55 (WE2B) Property with overhead external and underground internal

power connection with $100 service charge due to multiple dwellings.

444.55

438.76 (WE2C) Property with overhead external and underground internal

power connection with $50 service charge due to multiple dwellings.

438.76

432.97 (WE3) Property with underground external / internal power connection

($0).

432.97

64.94 (WE3A) Property with underground external / internal power

connection ($0) with 85% discount (some overhead lines remain).

64.94

64.94 (WE3D) Property with overhead external and underground internal

power connection ($0) with 85% discount (the street has underground

power).

64.94

935.39 (WEM2A) Two dwellings on one property with overhead external /

internal power connection ($600).

935.39

865.94 (WEM2C) Two dwellings on one property with overhead external /


865.94

129.89 (WEM2E) Two dwellings on one property with underground external /

internal power connection ($0) with 85% discount (some overhead

lines remain).

129.89

2,632.54 (WEM6B) Six dwellings on one property with overhead external and

underground internal power connection ($300).

2,632.54

4,329.68 (WEM10C) Ten dwellings on one property underground external /


4,329.68

22,947.29 (WEM53C) Fifty-three dwellings on one property with underground

external / internal power connection ($0)

22,947.29

36 The service charge for the area described as Wilson East was imposed on property owners for the first time in the 2013-2014 financial year. Property owners were given a once only opportunity to make a lump sum payment, which reduced the amount of loan funds to be raised. Those who elected not to make a lump sum payment make annual payments over a 10 year period which commenced in the 2013-2014 financial year. Where a property has been subdivided after the 2013-2014 initial imposition of the underground power levy, the charge will be proportionate depending on the number of subdivided units created.


Page 25



Adopted

Draft


2018-2019 Wilson East – Service charge application 2018-2019 2019-2020

$

$ $



Less Expenses

(252,482) Loan Repayment Principal (252,774) (262,493)

(61,867) Loan Repayment Interest (61,926) (42,806)

(314,349)

(314,700 (305,299)

0 Unspent/(Overspent) Balance Carried Forward 7,540 0


Other Charges

38 Merchant Fee Surcharge – to partly recoup the cost of banking transactions.

Payments made by Visa / MasterCard credit card will incur a surcharge of 0.60%.

Payments made by Visa / MasterCard debit card will incur a surcharge of 0.40%.

There will be no charge for EFTPOS transactions.

These charges will apply to the payment of rates made through the City’s website plus all over the counter payments at the City’s Administration Office located at 1317 Albany Highway Cannington.

The Australia Post over the counter charge of $2.27 and 0.66% credit card surcharge, remain the same as the previous year. This may change subject to new contractual arrangements.

39 Interest on overdue sundry debt – to partly recoup the cost of debt collection and foregone interest earnings.

40 It is proposed to introduce an interest charge on overdue sundry debt owed to the City. It would be charged on debts outstanding for more than 45 days. This is intended to encourage earlier payment of invoices issued by the City. The rate of interest proposed is 3.25%. This is the same percentage as for other City rates debt.

New Delegation

41 Not all City fees and charges are imposed under legislation, which establishes non-optional payment obligations for services such as food premise health and swimming pool inspections. Discretionary fees such as leisure and recreation services are optional, paid only when these services are accessed by the community.

42 Short-term promotional pricing may achieve improved City revenues and community participation rates during off-peak periods or when City revenue targets are not being achieved. Additional benefits include improving affordability for some of the more disadvantaged members of the community, as well as introducing new service offerings. During set locally promoted advertised times to the community, promotional fees and charges may be discounted against the previously adopted advertised rates.

43 A delegation from Council to the Chief Executive Officer is recommended to facilitate the discounts, in accordance with the adopted Fees and Charge Schedule. This could in turn be subdelegated to City Officers with a delegation recorded on the City’s delegation register.


Page 26


CONSIDERATIONS

Legal Compliance

44 Section 6.13 of the Local Government Act 1995:

(1) A local government may resolve* to require a person to pay interest at the rate set in its annual budget on any amount of money (other than rates and service charges) which —

(a) that person owes to the local government; and

(b) has been owed for the period of time referred to in subsection (6).

* Absolute majority required.

(3) The rate of interest that may be set by the local government under this section is not to exceed the rate for the time being prescribed as the maximum rate of interest that may be set for the purposes of this section. Under Local Government (Financial Management) Regulation 19A the maximum rate is 11%.

(6) A local government is not to impose interest on any amount of money under subsection one, until the money has been owed to the local government for the period of time set by the local government in its annual budget (not being less than 35 days).

45 Section 6.15 of the Act states that local governments may receive revenue or income from several sources (including ‘fees and charges’) as well as any other sources authorised by the Act or other written law.

46 Section 6.16 and Local Government (Financial Management) Regulation 25, a local

government may impose* and recover a fee or a charge for any goods or services it provides.

47 Section 6.38(1) allows a local government to impose on owners or occupiers of land, a service charge for a financial year to meet the cost of a prescribed work, service or facility in relation to the land.

48 Regulation 54 of the Local Government (Financial Management) Regulations states the following are prescribed as works, services and facilities:

a) Property surveillance and security.

b) Television and radio rebroadcasting.

c) Underground electricity.

d) Water.

Policy Implications

49 Pursuant to Section 18 of the Payment Systems (Regulation) Act 1998, the Reserve Bank of Australia determines Standard No. 3 of 2016 Scheme Rules Relating to Merchant Pricing for Credit, Debit and Prepaid card transactions. According to the new standard which came into effect from 1 September 2017, the permitted surcharge for a merchant and a scheme at any time is an amount not exceeding the cost of acceptance for the merchant and the scheme applicable at that time.

50 FM.08 Budget Preparation

51 Rating Strategy 2018- 2023


Page 27



Business Plan

52 Business Canning

Safe Canning

Clean Canning

Internal Budget

53 The City’s 24 hour property surveillance and security service was introduced to supplement state funded police efforts towards crime prevention, through surveillance whist patrolling the City’s streets.

54 This report forms part of the 2019-2020 Annual Budget and information is disclosed in the Statement of Financial Activity.

Asset Management

55 Not applicable.


56 The City of Canning’s Long Term Financial Plan outlines strategies towards managing the City’s future financial sustainability, as well as meeting the Strategic Community Plan expectations over the next 10 years. The City will continue providing services and infrastructure for a growing population in a way that’s affordable and f inancially responsible.

Consultation

57 Local public notice is provided of any changes to the City’s imposed fees and charges following budget adoption.


58 The City’s 24 hour property surveillance and security service was introduced in an endeavour to reduce the incidence of crime and anti-social behaviour throughout the City.

59 The underground power projects are externally funded 50% through the state government and 50% landowners who either pay upfront or via loan funds borrowed on their own behalf. The low interest loans are fixed for 10 years. There is no early repayment option available.


Page 28


Risk/ Opportunity

Consequences Mitigation/

Actions Consequence

Likelihood X

Consequence Rating

= Overall Risk/ Opportunity

Officer Recommendation approved by the Council (positive outcomes) Opportunity A

The City complies with Local Government Act 1995. Annual fees and charges updated to fund service delivery.

New fees and charges are implemented and customers informed. Budgets are managed as approved in accordance with existing delegations and policy.

Likely Significant High

(Opportunity)

Officer Recommendation approved by the Council (negative outcomes) Risk B

Not applicable. Not applicable. Not applicable. Not applicable. Not applicable.

Officer Recommendation deferred by the Council Risk C

The City’s fees and charges cannot be updated to reflect current cost of service delivery. Potential financial loss.

The draft Annual Budget was prepared within the City’s IPR framework and policy FM05 Budget Preparation through Council workshops.

Possible Moderate Medium (Risk)

Officer Recommendation declined by the Council Risk D

The City’s fees and charges cannot be updated to reflect current cost of service delivery. Potential financial loss.


Almost Certain Moderate High (Risk)

COMMENT

60 Fees and charges are reviewed annually to ensure appropriate rates are reflective of the cost of service delivery. Some fees and charges are prescribed under legislation at set amounts.

61 Preparations for the Shelley underground power project are underway and planned to commence in 2020-2021.

VOTING REQUIREMENT

62 Absolute majority (Refers Local Government Act 1995, Sections 6.16 and 6.38).


63 Nil.


Page 29

CC-038-19 2019-2020 Rate Charges CC-038-19

CC-038-19 2019-2020 Rate Charges



FILE REF: Q19/165


REPORTING OFFICERS: Steve Leeson - Executive Manager Business Canning

Ngahuia Matehaere - Senior Rates Officer

RESPONSIBLE OFFICER: Garry Adams - Director Canning Community & Commercial


Community Goal: Effective leadership and good governance. Council Strategy: Open and transparent to the community and stakeholders.


Attachments: 1. 2019 - 2020 Rating Exemptions (D19/103583).

In Brief:

As part of the 2019-2020 Annual Budget, the purpose of this report is for Council to consider and adopt the general rates in the dollar, minimum rate and specified area rates on the City’s rateable properties, along with endorsing rating exemptions for community and charitable purposes.


Page 30


COUNCIL DECISION

MOVED Cr Porter, SECONDED Cr M Hall, that Council:

1. Pursuant to Sections 6.32 and 6.33 of the Local Government Act 1995, adopts the following differential general rates in the dollar and minimums for the 2019-2020 financial year:

a) Residential Improved Land.

$0.046646 to be imposed on property Gross Rental Values, subject to a minimum rate of $852 per assessment.

b) Non-residential Improved Land.


c) Unimproved Land.


2. Adopts a Specified Area Rate for the 2019-2020 Financial Year of $0.004363 to be imposed on the property Gross Rental Values of that portion of the district in the City of Canning, as described in the Schedule to the Order as Council published in the Government Gazette on 22 July 1994, page 3763.

3. Pursuant to Section 6.47 of the Local Government Act 1995, resolves to grant rating exemptions for Community and Charitable Purposes as detailed in Attachment 1.

CARRIED BY ABSOLUTE MAJORITY 7/1 For: Mayor Ng, Crs M Hall, P Hall, Kunze, Porter, Ponnuthurai, Saberi

Against: Cr Barry



Ordinary Council Meeting 15 May 2018

CC-021-18 Rating Strategy

1 Adopts the Rating Strategy 2018-2023 included as Attachment 3.

2 Considers the Rating Strategy 2018-2023 in the drafting of the City’s 2018-2019 Annual Budget.

Special Council Meeting 28 August 2018

CC-038-18

1 Pursuant to Sections 6.32 and 6.33 of the Local Government Act 1995, adopts the following differential general rates in the dollar for the 2018-2019 financial year: a) Residential Improved Land

$0.045370 to be imposed on property Gross Rental Values subject to a minimum rate of $800 per assessment.

b) Non-residential Improved Land $0.045980 to be imposed on property Gross Rental Values subject to a minimum rate of $800 per assessment.

c) Unimproved Land $0.059260 to be imposed on property Gross Rental Values subject to a minimum rate of


Page 31




$800 per assessment. 2 Adopts a Specified Area Rate for the

2018-2019 Financial Year of $0.003667 to be imposed on the property Gross Rental Values of that portion of the district in the City of Canning, as described in the Schedule to the Order as Council published in the Government Gazette on 22 July 1994, page 3763.

3 Pursuant to Section 6.47 of the Local Government Act 1995 endorses rating exemptions for Community and Charitable Purposes as detailed in Attachment 1.

Special Council Meeting 25 June 2019

CC-032-19 Proposed Differential Rating 2019-2020

1. Approves the following differential rates and minimum rates for advertising, in accordance with section 6.36 of the Local Government Act 1995:

2019-2020 Rate in $ / Minimum Residential $0.046958 / $852.00 Non Residential $0.047589 / $852.00 Unimproved $0.075133 / $852.00

2. Considers any public submissions relating to the above proposed differential rates, as part of the future Council reports which propose the adoption of the 2019-2020 Annual Budget.

BACKGROUND

1 Local Governments impose rates on properties within their district to raise revenue to fund the services and facilities provided to land owners, residents and visitors.

2 Landgate determines all properties’ Gross Rental Valuations (‘GRV’), and undertakes a revaluation process on a three-yearly cycle. The latest valuation was applied from 1 July 2017, and resulted in discrepant increases or decreases on GRV weightings between residential and non-residential properties across the City. The 2019-2020 financial year is the last year in the triennial revaluation period.

3 The City of Canning (‘the City’) adopted the Rating Strategy 2018-2023, which considers the fair and equitable share of rates to be paid by each property owner and occupant, for the City’s services and infrastructure, to meet the community’s current and future needs.

4 Differential rating enables the City to vary the impact of its rates on different categories of land to ensure an equitable contribution in their share of the rating burden. It can ensure rates generated from types of land use remain similar to prior years across revaluation years.

DETAILS

5 Section 6.33 of the Local Government Act 1995 (‘Act’) provides local governments with the

option of implementing differential rates. It is proposed that the City’s rating will be based on the combination of the following characteristics:


Page 32


a) Land use - two categories of land use being residential and non-residential.

b) Improved or unimproved land - unimproved land does not contribute to the amenity of an area.

6 Section 6.36 of the Act requires objects and reasons for the use of any differential rating and must be communicated and given notice of through the Annual Budget process. The following objects and reasons are provided:

Residential Improved Land

7 This incorporates residential single dwellings, duplex, multi-unit, strata and Department of Housing improved properties.

8 To ensure that the proportion of total rate revenue derived from residential properties remains essentially consistent with previous years. It also includes the ongoing maintenance and service provision of the City's assets and services primarily used by residential ratepayers. This will ensure a reasonable contribution to the cost of local government services and facilities available to residents.

Non-residential Improved Land

9 This incorporates all light industry, general industry, commercial, service commercial, and local centre properties.

10 The positive differential rate for non-residential improved land is proposed in order to fund the additional costs of servicing these types of properties. Commercial and industrial premises generate higher volumes of pedestrian and traffic movements than residential properties, which results in increased road and streetscape maintenance requirements, additional on street parking needs, and the requirement to install additional traffic treatments.

11 Due to the increased presence of litter surrounding commercial and industrial land, the City is also required to provide additional litter collection services to these areas. Patrons and employees of commercial and industrial premises are consumers of municipal services but unless they are also property owners within the City, are not contributing to the cost of services used by them in the City of Canning. This will also ensure rates revenue from industrial and commercial properties remains essentially consistent with previous years.

12 The initial positive differential amount of 1.34% (above the residential GRV rate), was based upon the shift in rate burden from residential to non-residential properties as a result of the 2017-2018 revaluation process. It is proposed to increase the differential to 2.23% based on capacity to pay, in line with other Perth metropolitan local governments higher rating of non-residential properties.

Unimproved Land (Residential / Non Residential)

13 The City may implement differential rating based on whether the land is improved or unimproved, in accordance with Section 6.33 1(c) of the Act.

14 A positive differential rate for unimproved land is proposed to promote development and discourage land banking. Setting a higher rate for unimproved properties acts towards stimulating growth and development in the economy and also to recognise the additional costs of servicing these types of properties. Unimproved properties are more likely to be the sites of illegal dumping, and in some cases can become overgrown and unkempt, or become places of antisocial behaviour. Additional street and gully cleaning may be required due to sand and debris originating from vacant land spreading onto the roads and gutters. The above requires the allocation of City resources over and above that required for residential improved properties. Unimproved land contributes less than neighbouring developed properties towards new projects and renewal of City infrastructure. Unimproved land can benefit through these developments in the local area and amenities through improved property values.


Page 33


15 The initial positive differential of 130% on unimproved land (above the residential GRV rate) was based upon a three year strategy to increase this differential to 200% as permissible under the Act and other Perth metropolitan local government’s higher rating of unimproved properties. For 2019 – 2020 it is proposed to increase the differential to 160%.

Minimum Rate

16 The Act provides that a local government may set a minimum payment for rates. That is, irrespective of the rating calculation determined by multiplying the rate in the dollar by the GRV, no property should be assessed for rates at an amount below the minimum payment amount that is set. The rate in the dollar and minimum payment will together determine what the minimum valuation is, and all properties with a valuation less than this will be subject to the minimum payment.

17 The Act does not stipulate an appropriate value for the minimum payment or how it might be determined. It is determined by each local government that every ratepayer should make a reasonable contribution to the services and facilities that a local government provides. There is no legislative requirement for the local government to justify or substantiate the minimum payment, although there is a statutory limit prohibiting a minimum being set so high that more than 50% of properties would be on the minimum. The City of Canning’s minimum rate is typically low in comparison to other Perth metropolitan local governments. The City’s Long Term Financial Plan 2017–2027 objective is to achieve parity in minimum rate charges.

18 A uniform minimum rate is proposed to continue across all rate categories for the 2019-2020 financial year. The minimum rate has been determined by the City on the basis that all ratepayers must make a reasonable contribution to the cost of the City's services, facilities and infrastructure. The proposed rate is $852.

General Rating Estimates

19 The deficiency of expenditure over income for the purpose of striking the differential and minimum rate for the 2019-2020 financial year amounts to $68,423,226. This takes into account estimated revenue to be received from all sources other than rates. This also considered the extent of any increase in rating over the level adopted in the previous year as well as meeting the City’s Long Term Financial Plan objectives.

20 Rates will be levied as follows:

Rate Category Rate in the Dollar(cents) Minimum Payments

Residential Improved $0.046646 $852

Non Residential Improved $0.047668 $852

Unimproved $0.074623 $852

21 For the average residential property (GRV of $23,000) the City of Canning rates, fees and charges increase will be $37.65 or 72c per week for 2019-2020, which equates to 2.5% inclusive of the Emergency Services Levy (‘ESL’), waste fee and security levy. This is being set at $.00312 lower than the proposed rate advertised by the City, as part of the rate setting process in July 2019.

Average Residential 2018-2019 2019-2020 $ change % change

Average Gross Rental Value $23,000 $23,000 - -

Rate in the $ $0.04537 $0.046646 $0.001276 2.8

Waste $374.00 $381.50 $7.50 2.0

Security $55.50 $56.30 $0.80 1.4

Rates $1,043.51 $1,072.86 $29.35 2.8

Total Average Rates + Charges $1,473.01 $1,510.66 $37.65 2.5

Emergency Services Levy $333.18 $341.30 $8.12 2.4

Minimum Rates $800.00 $852 $52.00 6.5


Page 34


22 The minimum rate to be imposed for the 2019-2020 financial year is $852.00 per rateable property. The increase is $52.00 which equates to $1 a week. This will be applied to 12,463 assessments, being 32% of total properties.

Specified Area Rating

23 The City will maintain the following specified area rate for the 2019-2020 financial year:

Canning Vale Public Open Space Maintenance

24 To maintain the level of Public Open Space Development, at the current standard that was installed when the subdivisions were established in Canning Vale, a suburb located in the south east corner of the City, adjacent to Ranford Road, that was initially provided at the expense of the respective sub dividers.

Description of Land

25 All the land comprised within the area connecting at the north western corner of the intersection of Nicholson Road and Clifton Road, then in a north easterly direction along the north western boundary of Nicholson Road to Nicholson Court, then in a north easterly direction along the north western boundary of Nicholson Court to the south western corner of the intersection of Nicholson Court and the Standard Gauge Railway Reserve, then in a south westerly direction along the southern boundary of the Standard Gauge Railway Reserve and Ranford Road, then in a south easterly direction along the north eastern boundary of Ranford Road to the north eastern corner of the intersection of Ranford Road and Wilfred Road, then in a south westerly direction along the south eastern boundary of Wilfred Road to the south eastern corner of the intersection of Wilfred Road and Clifton Road, then in a south easterly direction along the north eastern boundary of Clifton Road to the south eastern corner of the intersection of Clifton Road and Silicon Road, then in a south easterly direction along the north eastern side of Clifton Road to the starting point.

This defined area is more commonly known as the ‘Canning Vale Estates’.

Specified Area Rating Estimates

26 The renewal of plant and equipment required to provide the higher standard of Canning Vale Public Open Space maintenance, has been considered when determining the rate in the dollar required for 2019-2020 financial year. This increases the comparative charge over previous years in recognising all costs associated with the delivery of this service.

27 The Rate in the Dollar $0.004363 (the basis for the rate is GRV) Determination of Rate in Dollar: Formula

Total GRV x Rate in Dollar = Rates Levied on Properties

82,201,675 x 0.004363 = $358,646 (*rounded)

28 This will be charged against 3,251 properties in the portion of the district referred to as the Canning Vale estates.


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29 Application of Specified Area Rates levied

To meet the additional cost of maintaining the public open space developed in the Canning Vale Estates. The Canning Vale Estates ratepayers are required to contribute approximately 27% of the total annual cost of maintaining the parklands and street gardens.

Adopted

Draft


2018-2019 Canning Vale Specified Area Rate application 2018-2019 2019-2020

$

$ $

0 Unspent/(Overspent) Balance Carried Forward (85,869) (96,290)

301,079 Revenue 300,989 358,646

301,079

215,120 262,356

Less Expenses

Public Open Space & Verge Maintenance

(28,220) - Canning Vale Oval (24,592) (32,561)

(75,266) - Livingston Estate POS (80,940) (76,450)

(68,007) - Waratah Estate POS (69,952) (69,588)

(129,587) - Ranford Estate POS (135,926) (119,143)

(301,079)

(311,410) (297,742)

0 Unspent/(Overspent) Expenditure Balance Carried Forward (96,290) (35,386)

* Any surplus or deficit amounts will be offset or recovered in later years. The actual amounts are subject to confirmation.

30 In accordance with Section 6.37 (2)(b) of the Act, if the City were to receive more money than it requires from the specified area rate, any surplus will be used to offset against future years charges along with the purchase of plant and equipment used for the service. A Reserve was established as part of the 2015-2016 Annual Budget for this purpose.

31 Current plant renewal expenditure requirements have been included within the specified area rate calculation, leading to a higher apportionment. The proposed 2019-2020 service charge will form a new base rate for long term financial planning.

Rates Exemptions

32 Provisions of the Act may provide for property to be non-rateable (ie charitable rating exemptions). The City has also adopted policy FM.10 Rating Concessions for Community Groups, to establish a framework for consistent management of granting a full rating concession to community groups, including sporting groups.

33 Community groups operate for the benefit of the community, and their purpose is not intended to generate significant revenue or profit. The City wishes to recognise this benefit by waiving the rates on the facilities used by these groups. Other City charges or levies (ie waste and security), along with State Government imposed charges (ie Emergency Services Levy) that may be applied, are not bound by this policy.

34 Included as Attachment 1 to this report is a listing of rates exemptions for 2019-2020.

CONSIDERATIONS

Legal Compliance

35 Section 6.32 of the Act allows a local government to impose a rate uniformly or differentially, and specified or a minimum.

36 Section 6.33 of the Act allows differential rates according to any, or a combination of zoning, use, vacant or any other characteristics.

37 Sections 6.35 and 6.37 of the Act further define how rates are to be imposed and managed.


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38 Section 6.47 of the Act allows the waiver of a rate or service charge at the time of imposing.

Policy Implications


40 FM.10 Rating Concessions for Community Groups


Business Plan

41 Business Canning

Financial Reporting:

a) To prepare the City’s Annual Report, Annual Budget, Long Term Financial Plan.



Internal Budget

42 This report forms part of the 2019 - 2020 Annual Budget and information is disclosed in the Statement of Rating Information.

Asset Management

43 Not applicable.


44 Issuing rates notices electronically as opposed to printing and postage is consistent with the City Policy CM194 Sustainability. The City’s rate payments incentives aim to specifically encourage ratepayers to opt for receiving their rates notices and instalment reminders electronically. The City’s Long Term Financial Plan proposed the imposition of a fee to recover printing and postage costs from 2019-2020.

Consultation

45 Community and ratepayer consultation were important considerations when drafting the City’s Rating Strategy 2018 - 2023.

46 Council approved at the 25 June 2019 Special Council Meeting, the following differential rates and minimum rates for advertising. The proposed differential rates and minimums were advertised for public comment on 29 June 2019 in the West Australian newspaper, then followed with website and local community newspaper advertising, calling for submissions by the closing date of 22 July 2019.

Rate Category Rate in the Dollar (cents) Minimum Payments

Residential 0.046958 852

Non-Residential 0.047589 852

Unimproved 0.075133 852

47 Consideration of the 13 public submissions received relating to the intended differential rates, was part of the process of preparation and adoption of the 2019-2020 Annual Budget and in accordance with Section 6.36(4) of the Act.

48 The reason for the adjustments to the rates and minimums advertised was due to further rating modelling being undertaken to achieve rating strategy objectives that were fair and equitable to the City’s ratepayers. Changes were made to the non-residential rating differential from 1.3% to 2.2% higher than the residential base rate.


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Other Considerations or Risks Risk/ Opportunity


Actions Consequence

Likelihood X

Consequence Rating



The City complies with Local Government Act 1995.

Annual rating of City properties, service delivery and capital program expenditures continue.

Budgets are managed as approved in accordance with existing delegations and policy.


(Opportunity)




The City does not meet compliance with Local Government Act 1995 to adopt the Annual Budget by 31 August 2019.





City service delivery and Capital Program expenditures suspended.



COMMENT

49 Rating requirements are set within the context of annual budgetary requirements and long term financial planning objectives.

50 Community and charitable rating exemptions are recognised as a donation expense, estimated at $1,027,926 in 2019-2020.

51 Benefits for all City of Canning ratepayers will again be provided as vouchers on the 2019-2020 rates notices. These are towards encouraging greater utilisation of City owned facilities and services provided.


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VOTING REQUIREMENT

52 Absolute majority (Local Government Act 1995, s6.62).


53 Not applicable.


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CC-039-19 2019-2020 Rates Payment and Incentive Scheme CC-039-19

CC-039-19 2019-2020 Rates Payment and Incentive Scheme



FILE REF: Q19/166


REPORTING OFFICERS: Steve Leeson - Executive Manager Business Canning

Ngahuia Matehaere - Senior Rates Officer



Community Goal: Effective leadership and good governance. Council Strategy: Open and transparent to the community and stakeholders.


Attachments: Nil.

In Brief:

As part of the 2019-2020 Annual Budget, the purpose of this report is for Council to consider and adopt:

a) a rate of interest on rates paid by instalments;

b) a rate of penalty interest on overdue rates, fees and service charges;

c) a charge for paper instalment notices sent by mail;

e) property rates exemptions;

f) the rate payment incentive scheme prizes; and

g) ratepayer benefits scheme;

to be issued with the 2019-2020 Rate Notices.


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COUNCIL DECISION

MOVED Cr M Hall, SECONDED Cr Ponnuthurai, that Council:

1. Pursuant to Section 6.45 of the Local Government Act 1995, adopts an instalment interest rate of 3.25% (GST free), and sets due dates for the payment of rates as follows:

a) 1st Instalment 11 October 2019

b) 2nd Instalment 13 December 2019

c) 3rd Instalment 14 February 2020

d) 4th Instalment 17 April 2020.

2. Grants a waiver from the instalment interest rate for eligible pensioners and seniors.

3. Pursuant to Section 6.51 of the Local Government Act 1995, adopts a 10% rate of penalty interest on overdue rates and service charges that remain unpaid (including alternate arrangements), and notes that this penalty interest will not be applicable to eligible pensioners and seniors.

4. Pursuant to Section 6.16 of the Local Government Act 1995 sets a paper, printing and postage charge of $1.65 (inclusive of GST), for rates instalment notices sent by mail.

5. Grants a waiver from the paper, printing and postage charge for eligible pensioners and seniors.

6. Endorses the Rates Payment Incentive Scheme and notes the sponsors and

dates for prize draws as per this report.

7. Endorses the Ratepayer Benefit Scheme and notes the details of vouchers to be issued as part of the 2019-2020 Rates Notice.

CARRIED BY ABSOLUTE MAJORITY 8/0



28 August 2018 Special Council Meeting

CC-039-18 Rates Payment and Incentive Scheme

1. Pursuant to Section 6.45 of the Local Government Act 1995, adopts an instalment interest rate of 3.25% (GST free).

2. Grants a waiver from this this instalment interest rate for eligible pensioners and seniors.

3. Pursuant to Section 6.51 of the Local Government Act 1995, adopts a 10% rate of penalty interest on overdue rates and service charges that remain unpaid (including alternate arrangements), and notes that this penalty interest will not be applicable to eligible pensioners and seniors.

4. Set due dates for the payment of rates as follows:


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a) 1st Instalment 12 October 2018 b) 2nd Instalment 14 December 2018 c) 3rd Instalment 15 February 2019 d) 4th Instalment 26 April 2019.

5. Endorses the Rates Payment Incentive Scheme and notes the sponsors and dates for prize draws as per this report.

6. Endorses the Ratepayer Benefit Scheme and notes the details of vouchers to be issued as part of the 2018-2019 Rates Notice.

15 May 2018 Ordinary Council Meeting

CC-021-18 Rating Strategy

1. Adopts the Rating Strategy 2018-2023 included as Attachment 3.

2. Considers the Rating Strategy 2018-2023 in the drafting of the City’s 2018-2019 Annual Budget.

BACKGROUND

1 Section 6.45 of the Local Government Act 1995 (‘Act’) states that rates charged may be

made by single payment or a person may elect to make payment by four equal or nearly equal instalments, or such other method of payment by instalments as is set in the Annual Budget.

2 The City of Canning (‘the City’) has traditionally offered a four instalment payment option. In 2017-2018 the previous $15 instalment administration charge was replaced with an instalment interest charge of 3.25%.

3 Regulation 67 and 68 of the Local Government (Financial Management) Regulations 1996

(‘Regulations’) permits a Council to impose additional charges where payment of rates is by instalments. This report does not seek to impose any additional charges.

4 The City has traditionally run a Rate Payment Incentive Scheme, offering sponsored prizes to encourage ratepayers to pay their rates by the first due date in full, or by optional instalments. The following conditions apply to all Prizes:

a) All outstanding previous years rates must be received on or before Friday, 11 October 2019.

b) Councillors and employees of the City and their immediate families (spouse and children) are ineligible to enter.

c) Other terms and conditions as specified are met.

5 The City will again provide benefits to all ratepayers as electronic vouchers on their Rates Notices. These were initially introduced on the 2017-2018 Rates Notices, towards encouraging greater utilisation of City owned facilities and the services provided.

6 Following landowner and community feedback via a Rating Discussion Paper, the City of Canning Rating Strategy 2018–2023 was adopted with the aim to create a framework that equitably, transparently and consistently shares the burden of rates and charges across City land owners. It considers:

1.12 Rates Notification

7 For the 2017-2018 and 2018-2019 financial years, the Rate Payment Incentive Scheme has specifically encouraged Ratepayers to receive their rates notices by email and to make their payments electronically, as the least cost method for the City and also in support of City policy CM194 Sustainability.


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DETAILS

8 Rate Payments and Charges

9 Section 6.50 of the Act permits a Council to determine when a rate charge becomes due and payable. The due date cannot be earlier than 35 days after the date noted on the Rate Notice as the date the Rate Notice was issued.

10 Where a person elects to pay a rate charge by instalments, the second, and each subsequent instalment does not become due and payable at intervals of less than two months.

11 It is recommended that the due date of each instalment for the 2019-2020 Financial Year be as follows:

a) 1st Instalment 11 October 2019

b) 2nd Instalment 13 December 2019

c) 3rd Instalment 14 February 2020

d) 4th Instalment 17 April 2020

12 Section 6.51 of the Act permits the Council to impose interest on a rate or service charge that remains unpaid:

a) Where no election has been made to pay the rate charge by instalments due:

i) after it becomes due and payable; or

ii) 35 days after the date of issue of the Rate Notice whichever is the later.

b) Where an election has been made to pay the rate charge by instalments and an instalment remains unpaid after it’s due and payable.

13 Section 6.45 of the Act permits a Council to impose an additional charge for the recovery of the additional cost of administration for payments made by instalment, including an amount by way of interest.

14 In recognition of the increased administrative burden in managing multiple instalments, it is recommended that the City maintains its instalment interest charges of 3.25%, applicable where ratepayers elect to pay by the prescribed instalment due dates. Eligible pensioners and seniors to remain exempt from this charge. Financial Management Regulation 68 states

that the maximum rate of interest on rates to be imposed under Section 6.45 of the Act is 5.5%.

15 It is recommended that Council maintain the currently imposed rate of interest of 10% on overdue rates, fees and service charges. Local Government Financial Management Regulation 70 states that the maximum rate of interest on overdue rates to be imposed under

Section 6.51 of the Act is 11%.

16 Paper Instalment Charge *New

17 There are over 38,000 rateable property assessments within the City that are issued with a rates notice annually. Approximately half of all ratepayers elect to pay their rates by instalment, requiring the issue of three further reminder notices.

18 Digital notices were established for the 2016-2017 rating year. Ratepayers may elect to have their notice emailed or received through online banking (via BPay View), avoiding the use of paper and postage, which aligns with the City’s Sustainability Policy CM194.

19 It is now common place for banks, utility service providers and other government agencies to interact via digital channels with their customers.

20 Despite campaigns and advertising promotions to encourage the switch to eRates (emailed rate notifications), the take up remains at a low 7,765 of 38,000 ratepayers. This is despite the majority of ratepayers paying via online banking.

21 Annually, the City spends $170,000 on its printing and postage of rate notices.


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22 After two years of campaigning to encourage ratepayers to transition to electronic means for instalment notices, it is recommended the City implement a cost recovery fee for paper, printing and postage. The fee would be waived for eligible seniors and pensioners and all ratepayers receiving the rates notice by email or online banking. Currently under legislation, the first rates notice is required to be posted and only instalment notices can be considered for cost recovery.

23 The proposed fee is $1.65 inclusive of GST.

Rate Payment Incentive Scheme

24 The terms and conditions for the 2019-2020 Rate Payment Incentive Scheme prizes are designed in an effort to minimise the cost to the City for the issue and collection of rates. To support the City’s sustainability and efficiency efforts, prizes are specifically aligned to encourage electronic rating and electronic payment methods.

25 All City of Canning ratepayers who have paid their rates in full or by the first instalment due date of midnight 11 October 2019, including all arrears, go into the draw to have their 2019-2020 rates plus fees and charges waived and paid for by the City. There will be two prizes offered. One for a residential ratepayer for the value up to $2,000. One for a non-residential ratepayer, for the value up to $5,000.

26 The following prizes have been provided by sponsors for the City’s 2019-2020 Rate Payment Incentive Scheme. All prizes will be drawn within two weeks after the first instalment due date.

a) Commonwealth Bank of Australia Prizes

The Commonwealth Bank of Australia has provided City ratepayers with a chance to win one of five prizes, of $500 each. To encourage ratepayers to transition towards the least cost method for receiving payments, and also to encourage the early payment of rates, these prizes will be specific to rate payments made via BPay payment methods only.

All ratepayers who pay their rates in full or their first instalment in full, including any arrears by the due date of 11 October 2019, are eligible for the Commonwealth Bank prizes.

The sponsor’s support is gratefully acknowledged.


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b) Easifleet Prize

Easifleet has provided City Ratepayers with a chance to win one prize of $1,000 towards their insurance and household expenses. All ratepayers who pay their rates in full or their first instalment in full, including any arrears by the due date of 11 October 2019, are eligible for the Easifleet prize.


c) HOYTS Prize

HOYTS, at Carousel and Southlands, has provided City Ratepayers with a chance to win movie tickets for a year. All ratepayers who pay their rates in full or their first instalment in full, including any arrears by the due date of 11 October 2019, are eligible for the HOYTS prize.


d) Western Australian Symphony Orchestra (WASO) Prize

Two double passes to a concert by the Western Australian Symphony Orchestra are available to be won by ratepayers who pay their rates in full or their first instalment in full, including any arrears by the due date of 11 October 2019, are eligible for the WASO prize.


Ratepayer Benefit Scheme

27 The City will continue to provide benefits to all ratepayers in 2019-2020 as electronic vouchers via the QR code on the back of the Rates Notice. These are provided towards encouraging greater utilisation of City owned facilities and the services provided. This includes:

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiGh9jOwezcAhWPzmEKHVRtC80QjRx6BAgBEAU&url=https://www.waso.com.au/&psig=AOvVaw1u-3iFodC1tFjBMLnok5G1&ust=1534335040470313


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28 Whaleback Golf Course

a) Complimentary Driving Range Balls.

- Receive 40 Free Range Balls value up to $11.00.

- Redeemable during all range hours.

- Valid until 14 December 2019.

b) Green fees Buy One, Get One (1) FREE! On 9 holes of golf value up to $48.00.

- Available Monday to Friday 10.30am till 2.30pm.

- Redeemable at the same time.

- Not available weekends and public holidays.

- Valid until 14 December 2019.

29 The support of Whaleback Golf lessee Mr Peter Hopkins is gratefully acknowledged.

30 Riverton and Cannington Leisureplex

a) Family Aquatic Pass value up to $19.50.

- Available at Riverton or Cannington Leisureplex.

- Admittance of up to four members of family at the same time.

- Valid until 30 June 2020.

b) Bring a Friend for FREE! - Receive two FREE Gym entries value up to $31.00.

- At either Riverton or Cannington Leisureplex.

- Must be redeemed on the same day/time.


c) Bring a Friend for FREE! – Receive two FREE Group Fitness entries value up to $31.00.

- At either Riverton or Cannington Leisureplex.

- Must be redeemed on the same day and time.


CONSIDERATIONS

31 The City raised $305,151 from the imposition of interest charges on overdue rates in the 2018-2019 financial year. The 2019-2020 draft Annual Budget has included $253,000 for interest charges on overdue rates.

* Interest charged to 30 June 2019 subject to audit confirmation.


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32 Financial Management Regulation 71 of the Regulations details the method of calculation of interest on overdue rates. a) Interest on rates and service charges and the cost of any proceedings to recover

such charges, that remain unpaid after the date of becoming due and payable (‘the due date’), is to be calculated on a simple interest basis for the number of days from the due date, until the day before the day on which a payment is received by the local government.

b) The principal sum on which interest is calculated for a financial year may include interest accrued, but not paid in a previous financial year, but is not to include interest accrued in the current financial year.

c) If payment is received by the local government during the period from 1 July in a

financial year, until the Annual Budget for that financial year is adopted, interest referred to sub-regulation (1) for that period is to be at the rate of interest imposed under Section 6.51 (1) of the Act for the previous financial year.

33 Approximately 16,424 of the City’s 38,522 ratepayers pay their rates by instalment. For the purposes of the 2019-2020 draft Annual Budget, it is estimated that the interest on instalments charge would recoup $340,000 in foregone interest earnings and towards additional administrative burden.

34 The interest on instalments charge will not be imposed on eligible pensioners and seniors. Rate Notice Package

35 To support the City’s sustainability and efficiency efforts, the 2019-2020 rate notice package will:

a) Contain only the rates notice and no other printed material.

b) Printed in black on white only.

c) The design and format will remain consistent with previous years.

d) Rate payment incentive scheme details will be on the front of the notice.

e) Ratepayer benefit scheme details with QR code will be on the back.

CONSIDERATIONS

Legal Compliance

36 Section 6.45 of the Local Government Act 1995 allows a local government to establish

payment options by a single payment, or by four equal or nearly equal instalments and may impose an additional charge (including an amount by way of interest) where payment of a rate or service charge is made by instalments.

37 Section 6.50 of the Act requires a local government to determine payment due dates no earlier than 35 days after the issue date noted on the rate notice, and where a person elects to pay a rate or service charge by instalments the second and each subsequent instalment does not become due and payable at intervals of less than two months.

38 Section 6.51 allows a local government to impose interest except for persons entitled under the Rates and Charges (Rebates and Deferments) Act 1992.

39 Regulation 68 of the Local Government (Financial Management) Regulations 1996

prescribes the maximum amount of penalty interest which may be imposed as 5.5%.

40 Regulation 70 of the Regulations prescribes the maximum amount of penalty interest which may be imposed as 11%.


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Policy Implications


42 CM194 Sustainability

43 Rating Strategy 2018-2023


Business Plan

44 Business Canning

Finance and Asset Management





Internal Budget

45 This report forms part of the 2019-2020 Annual Budget and information is disclosed in the Statement of Rating Information.

Asset Management

46 Not applicable.


47 Issuing rates notices electronically as opposed to printing and postage is consistent with the City Policy CM194 Sustainability. The City’s rate payments incentives aim to specifically encourage rate payers to opt for receiving their rates notices and instalment reminders electronically. The City’s Long Term Financial Plan proposes the imposition of a fee to recover printing and postage costs from 2019-2020.

Consultation

48 Community and ratepayer consultation were important considerations when drafting the City’s Rating Strategy 2018-2023. Local public notice of the Rating Discussion Paper and survey, along with direct community engagement were undertaken.


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Risk/ Opportunity


Actions Consequence

Likelihood X

Consequence Rating




Annual rating of City properties with set payment due dates.

Service delivery and capital program expenditures continue.



(Opportunity)











COMMENT

49 As at 30 June 2019, 96.5% of 2018-2019 rates have been received. The majority of City ratepayers would be conditionally eligible for the 2019-2020 Rates Payment Incentive Scheme.

50 Previously, all ratepayers irrespective of those being on the minimum rates, or those very large industrial and commercial ratepayers, could pay just $15 to make their rates payments by quarterly instalments. The $15 charge was towards the cost of printing, postage and lost interest revenue earnings. As a result of introducing the 3.25% interest on instalment charge, several large ratepayers of the City have either paid their annual rates in full by the due date, or incurred interest charges commiserate with the interest earnings foregone by the City.


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51 To assist in the recovery of outstanding rates, alternative payment arrangements are available to ratepayers upon request. Payment terms that do not exceed two years for both arrears and impending rates amounts by fortnightly direct debit, must be agreed to. Any legal action will be placed on hold on receipt of the agreement and adherence of the terms and conditions.

52 A campaign to notify ratepayers paying by instalments to make the change from paper to emailed rates will occur in 2019-2020.

VOTING REQUIREMENT

53 Absolute majority (Refers Local Government Act 1995, Sections 6.45, 6.50 and 6.51).


54 Not applicable.


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CC-040-19 2019-2020 Annual Budget CC-040-19

CC-040-19 2019-2020 Annual Budget



FILE REF: Q19/167


REPORTING OFFICER: Steve Leeson - Executive Manager Business Canning



Community Goal: Effective leadership and good governance. Council Strategy: Prudent financial management and long term financial

sustainability.

Authority/Discretion: Legislative: Includes adopting Local Laws, Town Planning

Schemes and Policies. Review when Council reviews decisions made by Officers.

Attachments: 1. Draft Annual Budget - 2019-2020 (D19/104763). (Large Attachments)

In Brief:

Council and City Officers have conducted six workshops since January 2019, in order to develop a budget that addresses the immediate and long term needs of the Canning Ratepayers and community. The result is a balanced budget set within the parameters of the City’s 10 year Long Term Financial Plan, adopted strategies and endorsed initiatives.

The purpose of this report is for Council to consider and adopt the City of Canning’s 2019-2020 Annual Budget.

6.32pm Deputy Mayor Cunningham entered the Council Chambers.


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COUNCIL DECISION

MOVED Cr M Hall, SECONDED Cr Kunze, that Council:

1. Pursuant to Sections 5.98, 5.98A and 5.99 of the Local Government Act 1995, that the City of Canning Elected Members’ annual fees and allowances be set at the maximum prescribed amounts, as determined by the Salaries and Allowances Tribunal under section 7B of the Salaries and Allowances Act 1975.

2. Authorises the Chief Executive Officer to amend Clause 5 of Policy CM102.1 Members - Meeting Attendance and Other Allowances to reflect amounts adopted in Part 1.

3. Pursuant to Section 6.2 of the Local Government Act 1995 and Local Government (Financial Management) Regulations 1996 Part 3, Regulations 22 to 33, adopts the following Annual Budget for the year ending 30 June 2020, as contained in Large Attachment 1.

a) Budget Statement of Comprehensive Income (by Program).

b) Budget Statement of Comprehensive Income (by Nature or Type).

c) Statement of Surplus or Deficit.

d) Budget Statement of Financial Activity.

e) Budget Rate Setting Statement.

f) Budget Cash flow Statement.

g) Statement of Rating Information.

h) Notes to the Annual Budget.

i) Sub-program Budgets for 2019-2020.

j) FM.05 Budget Preparation (Key Assumption Schedule).

k) Schedule of Fees and Charges for 2019-2020.

4. Adopts a material variance for reporting of 10% or $50,000 (whichever is the greater), for the year ending 30 June 2020.

5. Authorises the Chief Executive Officer and any Director of the City of Canning, to sign schedule documents under the Master Lending Agreement with the Western Australian Treasury Corporation and give instructions on behalf of the City of Canning, pursuant to section 9.49A(4) of the Local Government Act 1995.

CARRIED BY ABSOLUTE MAJORITY 8/1 For: Mayor Ng, Deputy Mayor Cunningham, Crs M Hall, P Hall, Kunze, Porter, Ponnuthurai, Saberi

Against: Cr Barry


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28 August 2018

CC-040-18

1. Pursuant to Section 6.2 of the Local Government Act 1995 and Local Government (Financial Management) Regulations 1996 Part 3, Regulations 22 to 33, adopts the following Annual Budget for the year ending 30 June 2019, as attached hereto.

a) Budget Statement of

Comprehensive Income (by Program).

b) Budget Statement of Comprehensive Income (by Nature or Type).

c) Statement of Surplus or Deficit.

d) Budget Statement of Financial Activity.

e) Budget Rate Setting Statement.

f) Budget Cash flow Statement.

g) Statement of Rating Information.

h) Notes to the Annual Budget.


j)\ FM.05 Budget Preparation (Key Assumption Schedule).


2. Adopts a material variance for reporting of 10% or $50,000 (whichever is the greater), for the year ending 30 June 2019.

BACKGROUND

1 The City’s 2019-2020 Annual Budget (‘Budget’)has been prepared within the parameters of the City of Canning’s (‘the City’) Long Term Financial Plan (‘LTFP’) 2017-2027, to also meet the objectives of the City’s Integrated Planning and Reporting (‘IPR’) Framework, whilst following Council Policy FM.05 Budget Preparation requirements.

2 The Budget Statements and Notes are also prepared in accordance with Section 6.2 of the Local Government Act 1995 (‘Act’) and Local Government (Financial Management) Regulations 1996 (‘Regulations’) Part 3, Regulations 22 to 33. Australian Accounting

Standards are also adhered to.


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3 The Budget is a collaborative process between Council and City Officers. The Budget has been arrived at through seven budget workshops, at which topics discussed followed a decision making framework included below:

4 Within the proposed Budget, all revenues and expenditures, including capital works, external grants, debt funding and the application of reserves, would result in a balanced budget (zero surplus or deficit) for the year ending 30 June 2020.

5 The Budget is consistent with the previous 2017-2018 and 2018-2019 Budgets, in that no prior year surplus funds were included to offset the current year’s operations. As per the LTFP and Council Policy FM.05 Budget Preparation, any surplus funds at financial year end are to be transferred to reserves as part of the annual reporting process.

6 Consistent with previous year budgets, all prior year carry forward projects were also excluded from the proposed Budget, pending further review and confirmation of any amounts necessary for project completion. These items are intended for consideration as part of a later budget review report.

7 It is recognised the annual budget is an informed financial forecast and variations are to be expected. Actual circumstances experienced may differ to initial estimates provided. Limited delegation is available under Council Policy FM.06 Budget Variation for City Officers to manage and accommodate variations, which may arise in meeting service operations and the delivery of annual objectives.

DETAILS

8 The Budget comprises the following information, which is contained in the Budget Booklet:

a) Budget Statement of Comprehensive Income for the year ending 30 June 2020 (by Program).

b) Budget Statement of Comprehensive Income for the year ending 30 June 2020 (by Nature or Type).

c) Statement of Surplus or Deficit for the year ending 30 June 2020.


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d) Budget Statement of Financial Activity for the year ending 30 June 2020.

e) Budget Rate Setting Statement for the year ending 30 June 2020.

f) Budget Cash flow Statement for the year ending 30 June 2020.

g) Statement of Rating Information for the year ending 30 June 2020.

h) Notes to the Annual Budget for the year ending 30 June 2020.


j) FM.05 Budget Preparation (Key Assumptions Schedule).


9 A Statement of Financial Activity, being a 12 month annual budget, has been prepared for the 2019-2020 financial year for the purposes of reporting on the sources and applications of funds.

10 The percentage for reporting material variances in the monthly Statement of Financial Activity is recommended to be set at 10% as per previous years. It is further proposed to introduce a combined dollar threshold for consideration of variances more than 10% or $50,000 whichever is greater.

11 Members meeting attendance and other allowances have been budgeted, in accordance with Council Policy CM102.1. In lieu of meeting attendance fees, Members receive the maximum annual meeting attendance allowance for a ‘Band 1’ Local Government determined by the Salaries and Allowances Tribunal (‘SAT’). The annual allowance includes all Council meetings, Committee meetings, forums and prescribed meetings.

12 As part of the Budget, the City’s reserve funds and their purpose for application have been reviewed. The assessment was towards ensuring the application of these funds in future years to be within the City’s IPR framework, so to deliver upon the Strategic Community Plan (‘SCP’) goals and objectives.

13 No change to the City’s existing cash backed reserves are proposed:

a) Land, Building and Development Reserve.

b) Waste Management Reserve.

c) Aged and Disability Services Reserve.

d) Insurance Reserve.

e) Infrastructure Reserve.

f) Sustainability Reserve.

g) Bentley Regeneration Reserve.

h) City Centre Reserve.

i) Property Surveillance and Security Reserve.

j) Canning Vale Specified Area Rate Reserve.

k) Under Ground Power Service Charge Reserve.

l) Golf Course Reserve.

m) Plant Replacement Reserve.

n) Community and Sporting Facility Reserve.

o) HVAC Reserve.

p) Legislative Expenses Reserve.


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14 The following new reserves are proposed in line with the City’s LTFP:

a) Town Planning Scheme (Cash Backed).

Purpose – To receive developer funded public art cash in lieu contributions under the City of Canning Local Planning Scheme.

Financial Strategy – Funded through conditions of development approval.

Requirement – Internally restricted funds.

CONSIDERATIONS

Legal Compliance

15 Section 5.98 of the Act entitles Council Members to be paid fees and reimbursed expenses up to the amount determined by the Salaries and Allowances Tribunal (‘SAT’) under the Salaries and Allowances Act 1975 (‘S&A Act’), Section 7B.

16 Section 5.99 of the Act allows Council Members to be paid annual allowance instead of meeting fees up to the amount determined by the Salaries and Allowances Tribunal under the S&A Act Section 7B.

17 Section 5.98(5) of the S&A Act allows the mayor to be paid an additional allowance up to the amount determined by the SAT under the S&A Act Section 7B.

18 Section 5.98A of the S&A Act allows the Deputy Mayor may to be paid an additional allowance up to the amount determined by the Salaries and Allowances Tribunal under the S&A Act Section 7B.

* Absolute majority required

19 Section 6.2 of the Act requires the following in relation to the Annual Budget:

a) During the period from 1 June in a financial year to 31 August in the next financial year, or such extended time as the Minister allows, each local government is to adopt, in the form and manner prescribed, a budget for its municipal fund for the financial year ending on the 30 June next, following that 31 August.

20 Regulation 34 of the Regulations require the following in relation to the Financial Activity Statement:

“5) Each financial year, a Local Government is to adopt a percentage or value, calculated in accordance with AAS 5, to be used in Statements of Financial Activity for reporting material variances.

* Absolute majority required

Policy Implications

21 FM.05 Budget Preparation.

FM.06 Budget Variations.

FM.10 Rating Concessions for Community Groups.

CM102.1 Members – Meeting Attendance and Other Allowances


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Business Plan

22 Business Canning





Internal Budget

23 This report forms part of the Budget and information is disclosed in the Statement of Rating Information.

24 Variations to budget forecasts are to be managed and reported as per Policy FM.06 Budget Variations.

25 2018-2019 actual balances reported within the statements and notes of the budget report, are still subject to end of financial year accounting treatments and external audit. The Annual Report, when adopted, will confirm the 2018-2019 final year end surplus or deficit position.

26 From 1 May 2018, the City implemented a new enterprise system and chart of accounts for its financial reporting. During the process of converting data from the old Authority system to the new OneCouncil system, certain items of expenditure and revenues were reclassified within the statutory program and nature and type reporting codes. This has resulted in comparative differences for the proposed 2019-2020 Budget against the adopted 2018-2019 Budget and actual amounts. This is most notable in the 2019-20920 budget statements by nature or type against classifications for employee expenses / materials and contracts. Cost recoveries and overheads are recognised as employee costs rather than materials and contracts previously. However, there was no overall change to determination of the City’s net position.

Asset Management

27 Not applicable.


28 New budget initiatives were considered for consistency with the City Policy CM194 Sustainability, including reduced reliance on rates income.

Consultation

29 The proposed Budget has been drafted in consideration of community feedback through the development of the Strategic Community Plan process.

30 Community and ratepayer consultation were important considerations when drafting the City’s Rating Strategy 2018-2023. Local public notice of the Rating Discussion Paper and survey, along with direct community engagement were undertaken. On 15 May 2018, Council resolved to adopt the Rating Strategy 2018-2023, and consider it in the drafting of the City’s Budget.

31 At the 25 June 2019 Special Council Meeting, Council approved proposed differential rates and minimum rates for advertising. The proposed differential rates and minimums were advertised for public comment on 29 June 2019 and 13 submissions were received by the closing date of 22 July 2019.


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Risk/ Opportunity


Actions Consequence

Likelihood X

Consequence Rating




Annual rating of City properties, service delivery and capital program expenditures continue.



(Opportunity)


Not applicable. Not applicable. Not applicable Not applicable Not applicable



The draft Budget was prepared within the City’s IPR framework and policy FM05 Budget Preparation through seven Council workshops.




City service delivery and Capital Program expenditures suspended.

The draft Budget was prepared within the City’s IPR framework and policy FM05 Budget Preparation through seven Council workshops.


COMMENT

32 A 2019-2020 community budget presentation has been prepared along with a budget highlight video to promote the adoption and new initiatives as contained in the City’s Annual Budget.

VOTING REQUIREMENT

33 Absolute majority (refers Local Government Act 1995, section 6.2).


34 Nil..


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7. CONFIDENTIAL REPORTS

Nil.

8. CLOSURE

There being no further business, the Mayor declared the Meeting closed at 6.43pm.

I certify that these Minutes were confirmed at the Ordinary Council Meeting held on 17 September 2019 as a true and correct record of proceedings.

Presiding Member: Paul Ng, Mayor

Date:

Minutes of Special Council - 15 August 2019€¦ · 15/08/2019 · Mrs Zampedri, Darling Street, South Perth Question 1: My complaint is about Lot 22 Gerard Street, East Cannington.

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