Proof_CouncilAgenda_Coverpage_Template_Governance

 

 

 

Council Supplementary

Agenda

 

 

 

 

Ordinary Council Meeting

6.00pm, 27 June 2017

Council Chambers, Civic Centre, Dundebar Road, Wanneroo


 

 

Notice is given that the next Ordinary Council Meeting will be held at the Council Chambers, Civic Centre, Dundebar Road, Wanneroo on Tuesday 27 June, 2017 commencing at 6.00pm.

 

 

 

 

 

D Simms

Chief Executive Officer

23 June, 2017

 

 

 

CONTENTS

 

Item  8______ Reports_ 1

Corporate Business Plan and Annual Budget_ 1

CS01-06/17      Adoption of 2017/18-20/21 Corporate Business Plan and 2017/18 Annual Budget  1

 


SupplementaryAgenda

Item  8     Reports

Corporate Business Plan and Annual Budget

CS01-06/17      Adoption of 2017/18-20/21 Corporate Business Plan and 2017/18 Annual Budget

File Ref:                                               25974 – 17/202045

Responsible Officer:                            Director Corporate Strategy and Performance

Disclosure of Interest:                         Nil

Attachments:                                       4         

Issue

To consider the adoption of the City’s Corporate Business Plan 2017/18 – 20/21 (CBP) and 2017/18 Annual Budget (Budget).

Background

A series of Integrated Planning and Budgeting Workshops (Workshops) were held with Elected Members which focussed on the reviewing and developing the CBP, Capital Works Program, and the various elements of the Budget.  The Strategic Community Plan 2017/18 – 26/27 (SCP) provided the broad strategic direction for this process. To apply prudent financial management practices in guiding the development of the Budget, Council adopted a Strategic Budget Policy on 26 March 2016. 

 

The following key economic parameters have been used in preparing the budget:

·        Actual Annual (March Quarter) Local Government Cost Index: 1.1% (WALGA);

·        Forecast 2017/18 Consumer Price Index (CPI): 1.75% (Department of Treasury Western Australia);

·        Forecast 2017/18 population/ratepayer growth: 4.0% (id Forecast);

·        Forecast 2017/18 average interest rate return on investments: 2.5%; and

·        Long Term Financial Plan 2016/17 – 35/36 (LTFP).

 

This report is the culmination of all development work and input from stakeholders into the 2017/18 planning and budgeting process and produces the required documentation as required by legislation.

Detail

Corporate Business Plan 2017/18 – 20/21

 

The CBP (Attachment 1) forms part of the City’s Integrated Planning & Reporting (IPR) framework which has been developed in accordance with statutory requirements.  This framework encompasses a strategic business planning and reporting system that delivers accountable and measurable linkages between Council’s long-term vision and aspirations, and operational service delivery.

 

A number of resourcing plans support these and affirm the City’s capacity and capability to deliver on the plans.  This integrated approach ensures effective delivery of the City’s strategic intentions as depicted in the following diagram: 

 

 

 

 

 

 

Development Process

 

As part of the annual IPR process the existing CBP was reviewed and an updated CBP prepared for 2017/18 – 20/21.  Annual reviews aim to ensure that operational priorities of the City are set within resourcing capabilities.

 

Review and development of the CBP was undertaken throughout January to May 2017 in consultation with the Elected Members, Executive Leadership Team (ELT), Managers and other stakeholders.  The focus in developing the CBP has been measured in adding new priorities to ensure that projects already committed to can be completed as planned.  Consideration has also been given to ensuring that the priorities identified for future years are achievable within current and planned resources (capacity and budget).

 

Consolidation of some actions from the existing CBP has occurred with smaller (lower-level) actions aggregated into higher-level priorities so that the CBP is kept as a high-level document that is appropriate for a four-year business plan.  More detailed actions relating to the priorities for year one (2017/18) will be contained in the 1–Year Action Plan.  This will provide greater clarity of annual priorities and actions, and allow for effective reporting on performance.  It is against the annual priorities and actions that quarterly progress reports will be provided to the Audit and Risk Committee.

 

As a complete document the CBP includes a demographic overview; a description of key challenges facing the City, Elected Member and ELT profiles, legislative requirements, an overview of the City’s integrated planning and reporting framework, a summary of City services to the community, capital sub-programs and significant capital projects for 2017/18, a risk management overview, and details of reporting. In accordance with previous years, the CBP is submitted to Council in an unbranded form and full corporate branding will occur following adoption by Council.

 

2017/18 Annual Budget

 

In developing the Budget consideration has been given to the wider international economic climate which remains relatively stable with no major changes indicated in the short to medium term.  Australia’s domestic growth is demonstrating some uncertainties, though inflation is anticipated to continue in the target range of 2.0% to 3.0% in the 2017/18 financial year, supported by a record low interest rate environment (cash rate is currently 1.50% - per June 2017 Reserve Bank of Australia meeting).

 

When compiling the Budget consideration was given to relevant commentary and forecasts provided through the State and Federal Budgets.  Both of these Budgets were released in May 2017 and provided some uncertainties and challenges in the short to medium term for the City, its services and for our community in general.  It is noted that investment returns will remain subdued while pressure on costs and the need to maintain and provide new infrastructure continues.

 

The City’s financial performance has been monitored throughout the current financial year to determine end of year forecasts and funding capacity for 2017/18.  As the final end of year processes will not be completed until September 2017, it is likely that the actual result will change with the final end of year Surplus/(Deficit) identified in the Rate Setting Statement (RSS) to be transferred to the City's Strategic Projects/Initiatives Reserve per Council policy.

 

The following documents provide a comprehensive outline of the proposed 2017/18 Budget:

·        2017/18 Statutory Budget (Attachment 2);

·        2017/18 Schedule of Fees & Charges (Attachment 3); and

·        2017/18 Capital Program including 2016/17 Carry Forward Projects (Attachment 4).

 

The size of the City's Budget continues to grow, primarily due to:

·        growth in the service area and population (expansion of service);

·        community expectation and needs; and

·        cost factor movements such as CPI and labour (increase to cost of service).

 

The development of the 2017/18 Budget is a direct outcome of the work undertaken through the review of the CBP as part of the IPR process and based on a 4.0% growth factor.  

 

Attachment 2 provides the detailed Budget, with the Statement of Comprehensive Income (by Nature & Type) reflecting a 2017/18 budgeted Net Result of $61.9 million, being a decrease from the 2016/17 estimated actuals of $84.1 million.

 

The Net Result forms the basis of reporting organisational performance under Australian and International Accounting Standards and includes Non-Operating items such as Grants & Contributions and Town Planning Scheme (TPS) Income & Expenses.  Furthermore, current reporting requirements provide for the recognition of the value of physical assets contributed by Developers as Non-Operating Income.  To better assess financial performance reference to the Underlying Operating Result is recommended, as detailed below.

 

The Underlying Operating Result excludes Non-Operating items such as Grants & Contributions, TPS Income & Expenses and Physical Assets received from Developers.  It is the City’s aim to achieve a balanced and therefore financially sustainable Underlying Operating Result.  Whilst the estimate for 2016/17 is a Surplus, this is primarily due to an advance part payment for 2017/18 received from the Grants Commission of $3.5 million.  Final figures will be reported in the audited annual financial statements.  For 2017/18 a Deficit of -$3.2 million is budgeted – resulting from the advance part payment grant income received in 2016/17.  When considered together, the 2016/17 Actual (Est.) and 2017/18 Budget show two well balanced minor Surplus’.

 

 

Comments relating to the changes in each operating income and expense category comparing to the 2016/17 Revised Budget, are provided below:

 

Operating Income $185.5 million (+$0.9 million/+0% against 16/17 Actual (Estimates))

 

·        Rates Revenue $152.0 million (+$9.5 million/+7%)

In developing the Rating Strategy the City has endeavoured to retain equity and fairness in the process by ensuring that the setting of the Minimum Rate and calculation of the General Rate (Rate-in-the-Dollar) only recovers an amount (referred to as the Budget Deficiency) which is considered essential to the running of Council activities and ensuring the Council’s long term financial sustainability.

 

In addition the Rating Strategy Review Committee, which was established in 2015, recommended the following actions which Council subsequently approved on 5 April 2016:

·        Combining of the Commercial and Industrial property categories;

·        Increase of Vacant Land rates to be in the top quartile by 2018/19;

·        Consideration of the Pensioner Rebate Scheme; and

·        Continuance of the Domestic Waste Service being incorporated into Rates.

 

As in previous years the cost of the Domestic Refuse Collection service is included as part of General Rates.  This ensures pensioners can obtain the maximum benefit from the State Government’s Pensioner Rate Rebate Scheme.

 

In accordance with the requirements of Section 6.36(1) of the Local Government Act 1995 a local public notice was published on 1 June 2017 detailing proposed Differential General and Minimum Rates for 2017/18.  This provided the opportunity for ratepayers to comment and ask questions.  The Rates advertised were designed to meet a Budget Deficiency of approximately $152.0 million.  No submissions were received by the closing date.

 

The modelling used in deriving the Rates advertised has incorporated the latest valuations provided to the City by the Valuer General.  It should be noted that properties rated on an Unimproved Value (UV) basis are revalued annually, whereas Gross Rental Values (GRV) are revalued every three years (recently received in May 2017).

 

The Rates-in-the-Dollar and Minimum Rates that have been proposed deliver an overall rate revenue increase of 3.96%, with an average increase of 2.45% for the Residential Improved category (which applies to 89% of Ratepayers).

 

Listed below are Rates increases for the previous 16 years of which 2017/18 will be the lowest in 12 years.

 

 

It is important to recognise that as a growth Council with a significant capital program there is a need to raise Rates above CPI.  However these increases have been kept to a minimum whilst still delivering the essential infrastructure and services needed by the City’s expanding community.

 

The Proposed Differential General and Minimum Rates as advertised on 1 June 2017 are stated in the following table, together with further information on the Rate Setting Strategy.

 

 

It should be noted that both the Industrial Vacant and Commercial Vacant categories are levied at the same rates for equity purposes (per recommendation of the Rating Strategy Committee and endorsed by Council in March 2016).

 

In 2016/17 Council approved the waiver of Council Rates (excluding the ESL) for community groups.  For 2017/18 the value of Rates revenue proposed to be waived for these groups (identified in Recommendation 3 to this report) is approximately $90,000.

 

·        Operating Grants, Contributions & Subsidies $8.9 million (-$7.1 million/-44%)

A decrease to Operating Grants & Subsidies is recognised primarily as a result of a reduction in the Federal Assistance Grants due to an advance part payment received in 2016/17.

 

·        Interest Earnings $8.0 million (-$0.7 million/-8%)

With the official cash rate at historically low levels the interest earning potential of the City has been reduced.  The funds available for investment are expected to remain relatively stable at approximately $180.0 million.

 

·        Fees & Charges $15.9 million (-$0.6 million/-4%)

Each year all fees & charges imposed by Council are reviewed as part of the budget development process to ensure compliance requirements are met and market rates are comparable.  As such the Schedule of Fees & Charges for 2017/18 is included as Attachment 3 for adoption by Council and to become effective in the new financial year (Monday 3 July 2017 or as soon as practicable).

 

·        Other Revenue $0.7 million (-$0.1 million/-11%)

The main contributors to the unfavourable variance for Other Revenue are reductions in forward estimates for Street Sign income and Building Assessment Fee income.

 

Operating Expenses $188.7 million (+$8.3 million/+5%)

 

·        Employee Costs $70.2 million (+$1.0 million/+2%)

The increase in Employee Costs is reflective of the City’s enterprise agreements.

 

·        Materials & Contracts $58.3 million (+$2.2 million/+4%)

The main contributors to the increase relate to the areas of Refuse Removal Costs due to an increase in volume and tariffs, and Contract Expenses-Other due to the planned increase in service levels in the Parks area.  In response to customer feedback the City has increased its streetscapes and landscape work with a focus on Marmion Avenue and Wanneroo Road.

 

·        Utility Charges $9.5 million (+$0.6 million/+7%)

Utility charges comprise Electricity, Gas & Water costs and are based on forecast unit charges together with any growth in usage.  Whilst there are increases across these cost areas it is the Street Lighting component which is the most substantial.  Budget calculations for Street Lighting were based on the actual number currently charged with an allowance for Tariff increase.

 

·        Depreciation $45.0 million (+$4.5 million/+11%)

Depreciation is an accounting process which values the usage (consumption) of the City’s property, plant and equipment including infrastructure assets such as roads and drains.  The increase is due to the growth in assets held by the City and contributed by Developers, and the revaluation exercise undertaken during the 2016/17 financial year.  During the 2015/16 financial year total non-current assets increased by $96.8 million to $2.1 billion.  It is noted that further revaluations in the asset base may take place in the 2017/18 financial year which may further impact the City in the coming financial years.

 

 

·        Insurance Expenses $1.6 million ($0.0 million/0%)

No change to the Insurance Expenses budget for 2017/18 is expected due to improved management of assets/resources.

 

·        Interest Expenses $4.1 million ($0.0 million/0%)

Interest Expenses relate to a loan agreement with Western Australian Treasury Corporation (WATC) secured in 2006/07.  This loan has been fully drawn and interest only payments will be made until the principal falls due in 2026. 

 

Capital Program

 

The Capital Program is developed with the aim of balancing the demands for new infrastructure against the need to maintain, renew, upgrade and replace existing assets.  The Capital Program is supported by Asset Management Plans.  The Capital Program for 2017/18 allocates 37% of the budget to upgrades, 37% to new work and 26% to renewal work.

 

The Capital Program has been set and prioritised based on a process of consultation with Elected Members that has enabled the City to assess the needs for each project and the priorities of the community, balanced against the City's financial and resourcing capacity.

 

The Capital Program for 2017/18 is proposed to be $70.4 million (excluding carry forward projects). Of the $70.4 million, funding will come from:

                                                                                                       $ Million

·        Grants & Contributions                                                              13.0

·        TPS’s                                                                                          0.0

·        Loans                                                                                          5.1

·        Reserves                                                                                   30.5

·        Municipal                                                                                   21.9

 

Major projects include:

                                                                                                       $ Million

·        Wanneroo Civic Centre Extension (PR-2332)                         10.0

·        Quinns Beach Management (PR- 2561)                                  3.0

·        Sports Ground Banksia Grove (PR-2819)                                 2.8

·        Butler North District Open Space Masterplan (PR-2955)          2.4

·        Mirrabooka Ave Dual Carriageway (PR-4046)                           2.3

·        Yanchep Surf Lifesaving Club (PR-1048)                         2.1

·        Kingsway Olympic Clubrooms (PR-2621)                        2.1

·        Yanchep Districts Sports Amenities (PR-2253)                         2.0

·        Mary Lindsay Homestead (PR-2467)                                         1.1

·        Yanchep Active Open Space (PR-2072)                                   1.1

·        Develop Industrial Area Neerabup (PR-4088)                           1.0

·        Upgrade Marmion Ave Butler (PR-3073)                                   0.9

 

Progress reporting on these projects will be provided to Council with the Statement of Financial Activity on a monthly basis.

 

A detailed listing of all individual projects comprising the Capital Program is included in Attachment 4.

 

Carry Forward Capital Projects

 

At the end of the financial year it is anticipated that some projects and plant replacements will be either incomplete or not commenced which is due to:

·        The size and complexity of projects which will by their very nature need to be phased over multiple financial years to accommodate accurate development and effective delivery; and

·        Projects which suffer delays and interruptions which can result from a range of issues such as scoping, definition or budget clarification, extended consultation periods, planning and approvals, 3rd party/statutory bodies and contractual delays.

 

In analysing the profile of anticipated carry-forward projects from 2016/17 it is estimated that $12.8 million worth of works will be carried forward.  This will notionally bring the total capital program for 2017/18 to $83.2 million.  However of the $12.8 million carry-forward amount, it is expected that nearly $8.3 million will be expended by 30 September 2017 on projects which have either already been awarded/committed or are currently in progress.

 

The carried forward project component is fully funded from the 2016/17 Budget (Attachment 4).  Actual amounts may be adjusted based on the final end of year results.

 

The carry forward projects are supported by the following funding sources:

                                                                                           $ Million

·        Grants & Contributions                                                              1.1

·        TPS’s                                                                                        0.0

·        Loans                                                                                        1.1

·        Reserves                                                                                   5.0

·        Municipal (to be transferred to Reserve)                                   5.5

 

Reserves

 

In order to meet the funding requirements of the Budget a range of Reserve transfers are proposed.  Details of these transfers are provided as part of the Notes to Accounts included in Attachment 2.

 

In accordance with the adopted Strategic Budget Policy and the LTFP, it has been possible to improve the City’s Reserve funding capacity, which will enhance the City’s ability to sustainably meet future demands and liabilities.  This is illustrated by the incorporation of a $2.0 million transfer to the Asset Renewal Reserve acknowledging the City has a growing asset base and asset renewal demand in future years that will require injection of funds.  This will be achieved by increasing allocations to the Asset Renewal Reserve in alignment to the depreciation charge.  Additionally there is a $3.0 million transfer to the Coastal Management Reserve to assist the City in managing its 32 kilometres of coastline.

 

 

Loan Funding

 

In developing the Five Year Financial Plan in 2006 loan funding was identified as a significant source for the Capital Program.  Prior to this the City had not sought to borrow, instead preferring to fund new works from retained earnings.  This left the City in a strong position to borrow to meet the requirements for new and replacement infrastructure.

 

The City agreed to borrow $60.8 million over five years and secured a loan facility in 2006/07 from the WATC.  The term of the loan is 20 years interest only with the principal due for repayment in December 2026.  A Loan Repayment Reserve has been created to ensure funds are available upon loan maturity.

 

The application of the draw-downs for this loan has been varied in successive Budgets to recognise changes in project costs, availability of alternative funding, changes in priorities and timing of projects.  The table below provides details of this information.

 

Due to refinement of costs, availability of other external funding sources, priorities of Council or where a more appropriate application of loan funds is identified, Council is required to adopt that change in application.  Outlined in the table below is a summary of the annual adoption and application of loan funds which are budgeted to be used from 2017/18.

 

In addition to the above, the City in partnership with Developers is undertaking capital projects in the Yanchep/Two Rocks area to be loan funded (and repaid by the Developers’ Contribution Plan).  The partnership was officially signed off by Council at its meeting held on 28 April 2015, with Council subsequently approving through the adoption of the 2016/17 Budget additional loan funding of $11.1 million to be sought.

 

It is noted that the DCP covers a ten year period from 9 September 2014 to 8 September 2024.  The DCP sets out the specific works covered by the Agreement, costings and the portion for which each party is liable and timeframes for the works to be undertaken.  This loan is anticipated to incur approximately $0.3 million in interest per year, for which a transfer will be made from the Yanchep/Two Rocks District Community Facilities Reserve.

 

Rate Setting Statement (RSS)

 

The RSS represents a composite view of the finances of the City.  It highlights the movement in the Surplus/(Deficit) which is primarily based on the operations and capital revenue & expenditure, as well as all transfers (Reserves and TPS’s).  The bottom line shows the resulting Rates income required.

 

Calculations for the 2017/18 RSS identified the need to raise $152.0 million through Rates, which equated to a 3.96% overall average Rating increase. However the Residential Improved category (representing 89% of the total rateable properties) only received a 2.45% overall average increase.

 

In accordance with the City’s Financial Cash Backed Reserves Policy, any unallocated Surplus/(Deficit) from the RSS is to be transferred to/(from) the Strategic Projects/Initiatives Reserve.  For 2016/17 an estimated unallocated Surplus of $2.1 million is expected to be transferred to this Reserve, while an amount of $5.3 million has been budgeted to be transferred from this reserve for 2017/18.

Consultation

At the beginning of 2017 the City commenced the annual review of the CBP with a number of internal workshops.  Through these workshops priority areas and supporting operating actions were identified.  These priorities and actions were subsequently presented and discussed with Elected Members during the annual IPR Workshops.  It should also be noted that this is based on the new SCP which was developed with input from the Community.

 

In accordance with the requirements of Section 6.36 of the Local Government Act 1995, the City is required to give notice of its intention to levy Differential General Rates and Specified Minimum Payments.  Per the recommendation of Council at their meeting of 30 May 2017, notices to this effect were advertised on 1 June 2017 and were open for a submission period of 21 days.  No submissions were received within the submission period.

Comment

In developing the Budget various economic and legislative factors have been considered.  The most influential driver of the Budget is the CBP, being an extension of the SCP.

 

For 2017/18 a Deficit Result from Operations of -$3.2 million is anticipated, whilst setting an average increase in Residential Improved Rates of 2.45% (being below the LTFP rate of 4.5%).  Notwithstanding the below LTFP increase, the City will continue to invest in community infrastructure with budgeted spend on the Capital Program totalling $70.4 million, plus an additional $12.8 million for Carry Forward Projects from 2016/17.

 

Focusing on liveability the Budget includes allowances for improved resident services such as extra Ranger patrols during the summer months, an increase in Parks Maintenance and additional spend on median and verge landscaping and maintenance.

 

In summary the Budget reflects prudent management of the City’s funds balanced by the needs of a growing community. 

Statutory Compliance

In accordance with the requirements of the Local Government Act 1995 and Local Government (Administration) Regulations 1996, local governments are required to implement a plan for the future, which provides for a ten-year SCP and a four-year CBP. 

The accompanying Budget for 2017/18 has been prepared in accordance with the Local Government Act 1995 (the Act), Local Government (Financial Management) Regulations 1996 and Australian Accounting Standards.

 

Pursuant to Section 6.36(1) of the Act, the City has given the appropriate notice of its intention to impose Differential General Rates and Minimum Rates in respect of each Differential Rate Category.

 

In accordance with Section 6.36(5), the City may modify the proposed Rates and Minimum Payments after considering any submissions, without the requirement for further local public notice.  The final Differential General Rates and Minimum Rates to be applied in imposing the 2017/18 Rates remain unchanged to those that were advertised. 

 

In considering the Budget and subsequent reporting it is also important to consider Regulation 34(5) of the Local Government (Financial Management) Regulations 1996.  This regulation requires a local government to adopt a percentage or value, calculated in accordance with Australian Accounting Standards, to be used in statements of financial activity for reporting material variances.  For 2017/18 it is recommended that the Council adopt 10%, with a minimum value of $10,000 for capital projects and $100,000 for operating accounts by Nature & Type, for the reporting of material variances.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

 “4     Civic Leadership

4.2    Good Governance

4.2.2 Provide responsible resource and planning management which recognises our significant future growth

Risk Management Considerations

Risk Title

Risk Rating

ST-G09 Long Term financial Planning

Low

Accountability

Action Planning Option

Director Corporate Strategy and Performance

Manage

 

Risk Title

Risk Rating

Financial Management

Moderate

Accountability

Action Planning Option

Executive Management Team

Manage

 

The above risk/s relating to the issue contained within this report has been identified and considered within the City’s Strategic and Corporate Risk register.  Action plans have been developed to manage this risk to support existing management systems.

Policy Implications

Nil

Financial Implications

Adoption of the CBP and Budget will allow for the timely implementation of identified Actions and associated Capital Program.  The LTFP will be updated following adoption.

Voting Requirements

Absolute Majority

 

Recommendation

That Council by an ABSOLUTE MAJORITY:-

 

1.     ADOPTS the unbranded Corporate Business Plan 2017/18 – 20/21 (Attachment 1),

 

2.     ADOPTS the Annual Budget for the Financial Year Ending 30 June 2018 (Attachment 2), incorporating:

2.1     Statement of Comprehensive Income, showing Total Comprehensive Income of $61,937,228 Surplus.

2.2     Statement of Cash Flows, showing cash at end of year position of $301,505,396.

2.3     Rate Setting Statement, showing the need to generate $151,980,546 through the levying of Rates.

2.4     The Notes To and Forming Part of the Budget.

2.5     Attachments 3 & 4 being:

3 - 2017/18 Schedule of Fees & Charges, and

4 - 2017/18 Capital Program (including 2016/17 Carry Forward Projects).

 

3.      AGREES to waive the 2017/18 Council Rates (excluding Emergency Services Levy) for the following community groups, in accordance with Section 6.47 of the Local Government Act 1995:

·        AJS Motorcycle Club of WA Inc.;

·        Kingsway Football & Sporting Club Inc.;

·        Olympic Kingsway Sports Club;

·        Pinjar Motorcycle Park Inc.;

·        Quinns Mindarie Surf Lifesaving Club Inc.;

·        Quinns Rocks Sports Club Inc.;

·        Tiger Kart Club Inc.;

·        Vikings Softball Club Inc. & The Wanneroo Giants Baseball Club Inc.;

·        Wanneroo Agricultural Society;

·        Wanneroo Amateur Boxing Club;

·        Wanneroo Amateur Football Club, Wanneroo Cricket Club, Wanneroo Junior Cricket Club and Wanneroo Junior Football Club (Wanneroo Showgrounds Clubrooms);

·        Wanneroo BMX Club;

·        Wanneroo City Soccer Club Inc.;

·        Wanneroo Districts Cricket Club Inc. (indoor facility);

·        Wanneroo Districts Cricket Club Inc. & Wanneroo Districts Hockey Association Inc.;

·        Wanneroo Districts Netball Association;

·        Wanneroo Districts Rugby Union Football Club Inc.;

·        Wanneroo Horse & Pony Club;

·        Wanneroo Racing Pigeon Club;

·        Wanneroo Shooting Complex Inc.;

·        Wanneroo Sports & Social Club Inc.;

·        Wanneroo Tennis Club;

·        Wanneroo Trotting & Training Club Inc.;

·        Yanchep Golf Club;

·        Yanchep Sports & Social Club Inc.;

·        Yanchep Surf Lifesaving Club Inc.; and

·        Youth Futures WA Inc..

 

4       In accordance with the provisions of Sections 6.32, 6.33 and 6.35 of the Local Government Act 1995:

4.1     IMPOSES Differential Rates and Minimum Rates for the 2017/18 Financial Year;

4.2     NOTES that the Differential Rates and Minimum Rates for the 2017/18 Financial Year are inclusive of Domestic Rubbish Collection Charges where applicable; and

4.3     SETS the Differential General Rates in accordance with the following tables:

4.3.1 IMPOSES the 2017/18 Gross Rental Value Differential Rates and Minimum Rates as follows, subject to the provisions of Sections 6.32, 6.33 and 6.35 of the Local Government Act 1995: -

GRV Category

Rate in the Dollar (cents)

General Minimum Rate $

Residential Improved

8.1645

1,337

Lesser Minimum for Strata Titled Caravan Parks

 

422

Residential Vacant

12.2300

875

Commercial & Industrial Improved

6.6120

1,318

Lesser Minimum for Strata Titled Storage Units

 

659

Commercial & Industrial Vacant

6.1160

1,318

4.3.2 IMPOSES the 2017/18 Unimproved Value Differential Rates and Minimum Rates as follows, subject to the provisions of Sections 6.32, 6.33 and 6.35 of the Local Government Act 1995:

UV Category

Rate in Dollar (cents)

General Minimum Rate $

Residential Improved

0.3851

1,337

Residential Vacant

0.5387

875

Commercial & Industrial Improved

0.2857

1,318

Commercial & Industrial Vacant

0.3081

1,318

Rural & Mining Improved

0.3736

1,330

Rural & Mining Vacant

0.4081

894

 

5.      IMPOSES the following Domestic Refuse Charges for the 2017/18 Financial Year, pursuant to the provisions of Division 5 of Part IV of the Health Act (as amended) and Section 67 under Division 3, Part 6 of the Waste Avoidance and Resource Recovery Act 2007:

5.1     Standard Service Charge per annum (one 240L recycling bin & one 240L rubbish bin) included within General Rates.

5.2     Additional Service Charge per annum (one 240L recycling bin & one 240L rubbish bin) $413.00.

5.2     Additional Recycling Service Charge Only per annum (one 240L recycling bin) $185.00.

5.3     Additional Rubbish Service Charge Only per annum (one 240L rubbish bin) $361.00.

5.4     Establishment Charge (per each new or additional service, one 240L recycling bin & one 240L rubbish bin) $107.00.

5.5     Establishment Charge (per each new or additional 240L recycling bin or additional 240L rubbish bin) $58.00.

6.      IMPOSES for the 2017/18 financial year a Private Swimming Pool Inspection Fee on construction of $40.00 and in each subsequent year thereafter a Private Swimming Pool Inspection Fee of $18.00 for each property where there is located a private swimming pool, in accordance with the provisions of the Local Government (Miscellaneous Provisions) Act 1960, Section 245A.

 

7.      AGREES to offer the following incentives for the payment of Rates & Charges in accordance with the provisions of Section 6.46 of the Local Government Act 1995,:

Full payment -

Full payment of all current and arrears of Rates & Charges and Private Swimming Pool Inspection Fees within thirty-five (35) days of the issue date on the Annual Rate Notice (5 September 2017):

-   eligibility to enter the early incentive draw.

Two Instalments -

The first instalment of 50% of the total current Rates & Charges, Private Swimming Pool Inspection Fees and Instalment Charge, plus the total outstanding arrears payable within thirty-five (35) days of date of issue of the Annual Rate Notice (5 September 2017):

-     eligibility to enter the early incentive draw.

Four Instalments -

The first instalment of 25% of the total current Rates & Charges, Private Swimming Pool Inspection Fees and Instalment Charge, plus the total outstanding arrears payable within thirty-five (35) days of date of issue of the Annual Rate Notice (5 September 2017):

-     eligibility to enter the early incentive draw.

 

8.      AGREES to offer the following payment options for the payment of Rates & Charges and Private Swimming Pool Inspection Fees in accordance with the provisions of Section 6.45 of the Local Government Act 1995,:

         One Instalment -

Payment in full within thirty-five (35) days of the issue date of the Annual Rate Notice (5 September 2017).

         Two Instalments -

The first instalment of 50% of the total current Rates & Charges, Private Swimming Pool Inspection Fees and Instalment Charge, plus the total outstanding arrears payable within thirty-five (35) days of date of issue of the Annual Rate Notice (5 September 2017).

The second instalment of 50% of the total current Rates & Charges, Private Swimming Pool Inspection Fees and Instalment Charge, payable sixty-three (63) days after due date of first instalment (7 November 2017).

         Four Instalments -

The first instalment of 25% of the total current Rates & Charges, Private Swimming Pool Inspection Fees and Instalment Charge, plus the total outstanding arrears payable within thirty-five (35) days of date of issue of the Annual Rate Notice (5 September 2017).

The second, third and fourth instalments each of 25% of the total current Rates & Charges, Private Swimming Pool Inspection Fees and Instalment Charge, payable as follows:

-        Second Instalment sixty-three (63) days after due date of first instalment (7 November 2017).

-        Third Instalment sixty-three (63) days after due date of second instalment (9 January 2018).

-        Fourth Instalment sixty-three (63) days after due date of third instalment (13 March 2018).

 

9.      IMPOSES, In accordance with the provisions of Sections 6.13 and 6.51 of the Local Government Act 1995, interest on all arrears and current charges in respect of Rates & Charges and Private Swimming Pool Inspection Fees (including GST where applicable) at a rate of 8.45% per annum.  This amount will be calculated on a simple interest basis on arrears amounts that remain unpaid and current amounts that remain unpaid after thirty-five (35) days from the issue date of the Original Rate Notice (5 September 2017), or the due date of the instalment and continues until instalment is paid, excluding:

·        Deferred Rates;

·        Instalment current amounts not yet due under the Four (4) payment options;

·        Registered Pensioner Portions; and

·        Current Government Pensioner Rebate amounts.

Such interest is to be charged once per month on the outstanding balance on the day of calculation for the number of days, as previously detailed.

 

10.    IMPOSES, in accordance with the provisions of Section 6.45 of the Local Government Act 1995, for the 2017/18 Financial Year, the following Administration Fees & Charges for payment of Rates & Charges and Private Swimming Pool Inspection Fees:

Two Instalment Option -

An Administration Fee of $5.00 for Instalment Two, together with an Interest Charge of 5.5% per annum, calculated on a simple interest basis on:

•        50% of the total current General Rate & Charges and Private Swimming Pool Inspection Fees calculated thirty-five (35) days from the date of issue of the Annual Rate Notice to sixty-three (63) days after the due date of the first instalment.

Four Instalment Option -

An Administration Fee of $5.00 for each of Instalment Two, Three and Four, together with an Interest Charge of 5.5% per annum, calculated on a simple interest basis on:

•        75% of the total current General Rate & Charges and Private Swimming Pool Inspection Fees calculated thirty-five (35) days from the date of issue of the Annual Rate Notice to sixty-three (63) days after the due date of the first instalment;

•        50% of the total current General Rate & Charges and Private Swimming Pool Inspection Fees calculated from the due date of the Second (2nd) Instalment to the due date of the Third (3rd) Instalment; and

•        25% of the total current General Rate & Charges and Private Swimming Pool Inspection Fees calculated from the due date of the Third (3rd) Instalment to the due date of the Fourth (4th) Instalment.

11.    ADOPTS, for the purposes of reporting material variances for the 2017/18 Financial Year, a percentage of 10% together with minimum values of $100,000 for operating accounts by Nature & Type and $10,000 for capital projects, in accordance with Regulation 34(5) of the Local Government (Financial Management) Regulations 1996.

 

12.    ENDORSES the following discretionary transfers to and from reserves (as detailed in Attachment 2), to ensure adequate funding is available over the longer term:

·        $2,000,000 to the Asset Renewal Reserve;

·        $2,000,000 to the Asset Replacement Reserve;

·        $3,000,000 to the Coastal Management Reserve;

·        $500,000 to the Land Acquisition Reserve;

·        $50,000 to the Leave Liability Reserve;

·        $1,000,000 to the Neerabup Development Reserve;

·        $3,000,000 to the Regional Open Space Reserve; and

·        $5,279,880 from the Strategic Projects/Initiatives Reserve.

 

 

 

 

Attachments:

1.

Corporate Business Plan 2017/18 - 2020/21 (unbranded)

17/141104

Minuted

2.

2017/18 Statutory Budget

17/201948

Minuted

3.

2017/18 Schedule of Fees & Charges

17/171343

Minuted

4.

2017/18 Capital Program

17/198500

Minuted

 

 

 

 

 


CITY OF WANNEROO Late Items Agenda OF Ordinary Council Meeting 27 June, 2017                                     17


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


CITY OF WANNEROO Late Items Agenda OF Ordinary Council Meeting 27 June, 2017                                     77

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CITY OF WANNEROO Late Items Agenda OF Ordinary Council Meeting 27 June, 2017                                   118

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CITY OF WANNEROO Late Items Agenda OF Ordinary Council Meeting 27 June, 2017                                   138

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