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Our Vision:

Connected - Sustainable - Creative

M I N U T E S

Extraordinary Meeting

Friday 16 May, 2014

Bellingen Council Chambers

Commencing 4.30 pm

BELLINGEN SHIRE COUNCIL – MINUTES - EXTRAORDINARY MEETING OF COUNCIL 16 MAY, 2014

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MINUTES: Extraordinary Meeting of Council held in the Council Chambers, Bellingen on Friday 16 May 2014 commencing 4.30pm. PRESENT: Councillors Garry Carter, Steve Klipin, Gordon Manning, Desmae Harrison, David Scott and Mark Troy (Mayor).

IN ATTENDANCE: Liz Jeremy, General Manager, Michelle McFadyen, Deputy General Manager Corporate and Community, Stephen Taylor, Deputy General Manager Operations and Symone Williams.

1. APOLOGIES

2. DECLARATION OF INTEREST

NIL 3. CONFIRMATION OF MINUTES

NIL

4. MATTERS ARISING

NIL

01.004/14

RESOLVED (Cr Klipin /Cr Scott) That an apology be received from Cr Dominic King. UNANIMOUS:

PROCEDURAL MOTION Moved (Cr Scott /Cr Harrison) RESOLVED That item 9.1 be brought forward. UNANIMOUS


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A G E N D A

1 APOLOGIES

2 DECLARATION OF PECUNIARY AND NON-PECUNIARY INTEREST

3 MINUTES

NIL

4 PUBLIC ACCESS/PRESENTATIONS ........................................................................... 4

5 MAYORAL MINUTE ....................................................................................................... 4

6 NOTICE OF MOTIONS .................................................................................................. 4

7 REPORTS BY GENERAL MANAGER ........................................................................... 4

8 REPORTS BY DEPUTY GENERAL MANAGER OPERATIONS ................................... 5

8.1 NEWRY ISLAND BRIDGE RESTORATION FUNDING .......................................................................................... 5 9 REPORTS BY DEPUTY GENERAL MANAGER CORPORATE AND COMMUNITY ... 13

9.1 ERRATA TO 2014/2015 REVENUE POLICY ..................................................................................................... 13 10 MINUTES FROM ADVISORY COMMITTEES .............................................................. 19

11 CORRESPONDENCE .................................................................................................. 19

12 AUTHORITY TO AFFIX THE COMMON SEAL OF COUNCIL FOR ITEMS NOT

INCLUDED IN REPORTS ............................................................................................ 19

13 ITEMS FOR INFORMATION ........................................................................................ 19

14 MATTERS OF AN URGENT NATURE ......................................................................... 19

15 QUESTIONS WITH NOTICE ........................................................................................ 19

16 COMMITTEE OF THE WHOLE .................................................................................... 19

17 REPORT ATTACHMENTS ........................................................................................... 20


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4 PUBLIC ACCESS/PRESENTATIONS

There were no public access or presentations requested at the time of preparation of this Agenda.

5 MAYORAL MINUTE

There are no Mayoral Minutes for this meeting.

6 NOTICE OF MOTIONS

There were no Notices of Motions received at the time of preparation of this Agenda.

7 REPORTS BY GENERAL MANAGER There were no reports from the General Manager.


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8 REPORTS BY DEPUTY GENERAL MANAGER OPERATIONS

8.1 NEWRY ISLAND BRIDGE RESTORATION FUNDING

File/Index: Newry Island Bridge Maintenance (Roads)

Author: Stephen Taylor, Deputy General Manager Operations

REPORT SUMMARY: This report is prepared to provide information for Council to enable it to consider the options for funding the restoration of Newry Island Bridge. REPORT DETAIL: Background At the Ordinary meeting of Council held on 23 April 2013 Council considered a report entitled ‘Newry Island Bridge Restoration’ and resolved as follows:

1. ‘That Council notes the preferred option for the restoration of Newry Island Bridge. 2. That a further report be brought forward to Council’s Ordinary Meeting in May detailing

funding scenarios relative to the approval or otherwise of the Special Rate Variation. 3. That detailed financial checks be undertaken on Timber Restoration Systems Pty Ltd

and this be canvassed in the report to Council’s Ordinary Meeting in May.’ Current Situation In the 2013/14 budget $250,000 has been allocated for the restoration of the Newry Island Bridge. In addition, in the Council’s Delivery Program (Sept 2012 – Sept 2016) in the ‘10 Year Road Capital Works Program with 11.8% Special Rate Variation’ (both with and without Local Infrastructure Renewal Scheme) $1,000,000 has been allocated to the Newry Island Bridge, ($500,000 in 2014/15 and $500,000 in 2015/16). The allocation was to be funded from the Special Rate Variation Loan Account - $943,295 and Roads to Recovery funding - $56,705. At this point in time the availability of both of those funding sources has not been confirmed. The ‘10 Year Road Capital Works Program with 2.3% (Rate peg)’ did not have an allocation for Newry Island Bridge however, since that program was prepared the condition of the bridge has deteriorated to the extent that it is not practical to delay the replacement/restoration of the existing structure. It is also apparent that replacement/restoration is undertaken as a matter of priority due to the following factors:

Continuing deterioration of the timber superstructure

The recent imposition of a 3 tonne load limit

The impact of the load limit for residents of Newry Island and Emergency Services Providers.

Physical work on restoration of the bridge could commence in July 2014 subject to confirmation of the contractual agreements by late May to provide for a 5 to 6 week design and manufacture of the structure components. A team of Council staff and the Contractor who is able to undertake the preferred option for the restoration of Newry Island Bridge have met to discuss planning for the restoration work and to gain an understanding of the issues in undertaking the work.

A detailed planning and risk analysis has been undertaken by Council staff. The two most significant risks identified in the initial assessment are:

Failure of a bridge span when the adjacent span is removed.

Failure of the support structure for the sewer mains when the existing deck is removed


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These risks will be alleviated/reduced by the following measures:

Installing additional temporary support for the span adjacent to the span being replaced.

Temporary relocation of sewer mains prior to bridge work proceeding with funding to be provided as part of the Sewer Capital Works Program.

Funding Sources a) Special Rate Variation (SRV) Full allowance has been made for the replacement/refurbishment of Newry Island Bridge if the SRV is approved. The decision by IPART is likely to be known by mid-June, however other funding options need to be considered now to ensure that construction can commence in July 2014. b) Roads to Recovery The following definition of Roads to Recovery is obtained from the Australian Government/Department of Infrastructure and Regional Development website:

“Roads to Recovery funding is a Federal Government funding program to contribute to the Infrastructure Investment Program through supporting maintenance of the nation’s local road infrastructure asset, which facilitates greater access for Australians and improved safety, economic and social outcomes. From 2014-15 to 2018-19 the Government will provide $1.75 billion ($350 million in 2014-15) under the Roads to Recovery program, to be distributed to Australia's local councils, state and territory Governments responsible for local roads in the unincorporated areas (where there are no councils) and the Indian Ocean Territories. The Bill to amend the Nation Building Program (National Land Transport) Act 2009 (the Act) to provide for this extension is currently before Parliament. Following the amendment of the Act, the Government will determine new council allocations and new funding conditions for the Program.”

Based on the 2009-10 to 2013-14 program which had a similar Government allocation Bellingen Shire is likely to receive $390,400 in 2014-15 and $1,952,000 over the five years. However, as the amendment to the Act has not yet been passed the future funding is not yet confirmed. If this funding was used for Newry Island Bridge, other projects programmed for 2014/15 would need to be reprogrammed. The projects in the 2014/15 program that could be affected are:

Tyringham Road (MR119) – north of North Dorrigo, Stage 2 - $180,000 ($90,000 RMS REPAIR program)

Coramba Road (MR469) – south of Wild Cattle Creek - $180,000 (($90,000 RMS REPAIR program)

Reids Creek Bridge - $60,000

McFadyens Bridge - $151,000 ($108,000 Flood Damage)

Browns Bridge - $60,000

Tallowood Bridge - $117,000

Cooks Bridge - $51,000 ($39,000 Flood Damage)

The first two of these projects also have RMS REPAIR program funding (50/50) which would not be received if equivalent funding from Council was not available. Two of the proposed bridge projects (McFaydens and Cooks) have been part funded approved in the 2013 Flood Damage claim. It is important that these four projects remain in the program so other external funding is not lost.


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The current load restriction on Reids Creek Bridge (20 tonne) is affecting maintenance of the road beyond this bridge and other road users operations and is considered high priority for repair due to the size of the area affected. When all the above factors are considered the option of using Roads to Recovery funding is not desirable and is not recommended. If Roads to Recovery funding is not confirmed a separate report will need to be submitted for Council’s consideration in relation to the ‘10 Year Road Capital Program. c) Special Roads Levy

This levy was approved by the Minister for Local Government in 1996/97. The levy is calculated at 5.00% of Ordinary Rates (gross levy – before any pensioner rebate adjustments) and is put towards the Transport Infrastructure (roads and bridges) capital works program. The Levy applies to all rateable land within the Shire. The revenue to be collected in 2014/15 is calculated at $303,590. In the ’10 Year Road Capital Works Program’, $200,000 of the Special Roads Levy is budgeted for road maintenance every year. The remaining $103,590 could be used for Newry Island Bridge. However, using this funding would impact on the other projects. The available funds for 2014/15 is programmed to match the 50/50 funding required for the RMS REPAIR program funding of $110,000 for Tyringham Road (MR 119) - Old Coast Road Stage 4. This project could however, be funded by ‘bringing forward’ Roads to Recovery funding from the 2015/16 program. This would, in turn, affect that year’s program but would ensure that other external funding is not lost. This would require a reassessment of Council’s Long Term Financial Plan and the ’10 Year Road Capital Works Program’ which would be undertaken following advice of the outcome of the SRV application, and reported to Council. It is considered appropriate to use the available funds in this levy. d) S94 Funding: Newry Island Bridge The Roads S94 plan has pre-plan funding for Newry Island Bridge of $115,375. This funding was originally collected to fund the replacement of the bridge with a double lane bridge. It is unlikely that a double lane bridge will ever be built in this location due to the cost and construction difficulty at the current bridge location. In addition, the anticipated life of the restoration option is 100 years therefore, it is considered appropriate to use the available S94 funds. e) Loan Options

i) External Due to Council’s financial position, borrowing externally for this project is not recommended. The 2013 Treasury Corporation Report states that “in our view council does not have the capacity to undertake any additional borrowings in the short to medium term….until 2018”. In addition, the report states that “should council secure approval for a Special Rate Variation, any additional funds generated could be used to service additional borrowings”. This approach is what is proposed if the SRV application is approved.

ii) Internal There are two sources of funds that could be considered for borrowing the money internally:

Water fund – balance as at 30 June 2013 - $9,305,000 Plant and Vehicle Replacement Fund – balance as at 30 June 2013 - $1,328,000 The Water Fund is externally restricted and requires approval of the Minister of Local Government before money can be borrowed from it. It should, however be noted that Council is already proposing to make an application to borrow $2.5 million from the Water Fund for part of the funding for the Dorrigo Sewer Treatment Plant upgrade. If it


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was considered appropriate to also borrow from the Water Fund for Newry Island Bridge the two applications could be submitted concurrently, so they were considered jointly. The Plant and Vehicle Replacement Fund is internally restricted and any borrowing from it can be approved by Council. A program for repayment of any money borrowed from this fund would need to be developed as any reduction in available funds in the Plant Replacement Fund would significantly affect future plant and vehicle replacement. As a result the use of the Plant Replacement Fund should only be considered as a last resort should all other funding sources be unavailable.

Either of these two funds could be used to supplement other available funds to progress the restoration of Newry Island Bridge. The repayment of borrowed funds and interest could be made using $100,000 of the Special Roads Levy from 2015/16 until the loan is repaid. This would require a reassessment of Council’s Long Term Financial Plan and the ’10 Year Road Capital Works Program’ which would be undertaken following advice of the outcome of the SRV application, and reported to Council. f) Internal Funding

Council undertakes contract works for the NSW Roads and Maritime Services on Waterfall Way. Projects undertaken as a ‘Work Order’ are priced with a provision for a contingency in case any rectification work is required. Over a period of time the unused contingencies have been held in a reserve fund in case of a significant failure in any future ‘Work Orders’. This reserve currently holds approximately $413,000. Using all of this reserve would expose Council to a risk if there was a failure in a ‘Work Order’. However, some of the reserve (say $300,000) could be considered appropriate for funding part of the restoration of Newry Island Bridge. The remainder of the funds will continue to be held in the reserve as contingency for any future rectification works. Summary The funding for the restoration of Newry Island Bridge should continue as proposed from the Special Rate Variation Loan Account, however to enable contractual arrangements to be progressed as soon as possible the alternative funding sources should be adopted if the SRV application is unsuccessful. Special Road Levy $ 103,590 S94 Funding $ 115,000 Internal Funding Reserve $ 300,000 Internal Borrowing $ 481,410 2013/2014 Remaining Budget $ 200,000 TOTAL $1,200,000 Note: Internal Borrowing would be sourced from either the Water Fund, subject to Ministerial approval or Plant and Vehicle Replacement (if approval is not received from the Minister). Company Due Diligence A financial assessment of Timber Restoration Systems Pty Ltd has been undertaken by Kingsway Financial Assessment Pty Ltd. This assessment indicates that the Company’s financial position has a ‘Good’ rating with improving financial activity. Projects undertaken or in progress in this financial year include the following:

Cairns Regional Council, Stewart Creek Bridge Upgrade – approx. $960,000

Somerset Regional Council, Inspection Report on 14 Flood Damaged Bridges – approx. $140,000

Cassowary Coast Regional Council, Renewal of 10 Bridges Kirrama Road – approx. $1.12 million (repeat client)

Cessnock City Council, Bob Wells Bridge Refurbishment – approx. $400,000


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BUDGETARY IMPLICATIONS: The estimated cost of the preferred option for restoration of Newry Island Bridge is $1,200,000. Council has approved in its Delivery program (Sept 2012 – Sept 2016) funding for Newry Island Bridge replacement of $500,000 in the 2014/15 program and $500,000 in the 2015/16 program. These budgets are subject to receiving approval from IPART for Council’s Special Rate Variation. There is also $250,000 programmed in the current financial year (2013/14). Approximately $50,000 of the current year budget has been expended to date on the reports as detailed in the Background section of this report. In addition, as there is no certainty at this stage of the success of the Special Rate Variation and other factors such as the Federal Roads to Recovery funding has not been confirmed. The recommendations below provide Council with a way forward in considering these issues. SUSTAINABILITY ASSESSMENT: The deterioration of Newry Island Bridge and its subsequent restoration has significant economic and social implications for the local community. Adoption of a recommendation to reinstate access as soon as possible will contribute to the social and economic wellbeing of the community. ENGAGEMENT: Having regard to the Bellingen Shire Community Engagement Strategy, it is considered that the proposal would be appropriately classified as having a Level 2 Impact (High impact – local), which requires Council to ‘’inform’’ and ‘’consult’’ with the community. To address the requirements of Council’s Community and Engagement Strategy and the NSW Local Government Act 1993 Council has carried out the following actions:

Four newsletters to residents (dated 1 July 2013, 2 October 2013, 7 April 2014 and 2 May 2014 [Attachment A]). A further newsletter to residents will be issued following Council’s consideration of this report.

Community consultation in conjunction with the SRV.

A Committee has been established consisting of relevant Council staff and five representatives of residents of Newry Island. The first meeting was held on Tuesday 6 May 2014.

In addition, arrangements have been put in place regarding waste collection and extensive liaison has been carried out with emergency services including Fire and Rescue NSW, the Rural Fire Service, the State Emergency Services and NSW Ambulance. Two fire trucks have been located on Newly Island and will remain there until works are complete. An Internal Working Group has also been formed comprising representatives from the Operations and Corporate and Community Divisions of Council. There has been one meeting held between the internal working group and a group of representative residents from Newry Island who are gathering information in relation to concerns and potential impacts associated with the bridge refurbishment. A number of matters were canvassed at that meeting including:

Arranging a public meeting and working out neighbour aid type arrangements

Providing a community noticeboard and /or a webpage as an assistance exchange for Newry Island residents

Facilitate assistance with the collection and delivery of essential items such a whitegoods, furniture, gas bottles etc

Facilitation of a collection point on the Urunga side of the bridge


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Communication with Newry Island residents and non-resident ratepayers Discussions have been held with RMS staff to discuss possible funding from the ‘Bridges to the Bush’ program; however Newry Island Bridge does not qualify for this program. Representations have also been made to the State member for Coffs Harbour and a meeting has been secured with the Deputy State Premier. In addition, this report recommends that correspondence be forwarded to IPART which outlines the circumstances of Newry Island Bridge, the restoration of which one of Council’s key reasons for submitting a SRV application.

Internal consultation has been undertaken with the Deputy General Manager Corporate and Community, Manager Finance and Manager Governance and Engagement. Concern has been expressed in regards to the use of funds from the Plant and Vehicle Replacement Fund and it was agreed this should only be used if other options are exhausted. SHIRE OF BELLINGEN 2030 COMMUNITY VISION ALIGNMENT: This project aligns with the following strategic directions within the Shire of Bellingen 2030 Community Strategic Plan.

“Places for People – We are connected and are able to move around in a safe, accessible, affordable healthy and environmentally friendly way”.

OFFICERS RECOMMENDATION:

1. That Council adjust the 10 Year Road Capital Works Program (3 options – with 2.3% (Rate Peg) and 11.8% Special Rate variation (with and without Local Infrastructure Renewal Scheme) by including $1,000,000 for Newry Island Bridge in 2014/15 and removing funding for Newry Island bridge in 2015/16.

2. That the funding for Newry Island Bridge be sourced from the Special Rate Variation

Loan Account as the first option, or from the following sources if the Special Rate Variation application is not successful:

Special Road Levy $103,590 S94 Funding $115,000 Internal Funding Reserve $300,000 Internal Borrowing $481,410

2013/2014 Remaining Budget $200,000 TOTAL $1,200,000

3. That as a contingency, Council submit an application to the Minister for Local Government seeking approval to borrow internally as outlined in this report noting that Council will also be seeking an approval in relation to the Dorrigo Sewerage Treatment Plant.

4. That should approval be received for the Special Rate Variation that this process be

discontinued. 5. That should approval for the Special Rate Variation and funding from the Water Fund

not be forthcoming, internal borrowing be undertaken from the Plant and Vehicle Replacement Fund.

6. That Council notes the result of the financial assessment of Timber Restoration Systems

Pty Ltd, as outlined in this report. 7. That Council restores Newry Island Bridge with full replacement of the entire

superstructure (including deck) with new reinforced high strength GlulamTM timber components.


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8. That Council engage Timber Restorations Pty Ltd at the quoted price of $781,574.17,

including GST as Council is satisfied that Section 55 (i) and (iii) of the NSW Local Government Act 1993 apply as there are extenuating circumstances for the residents of Newry Island and only one contractor is able to undertake the restoration work proposed.

9. That the General Manager be delegated the authority to finalise contract details and

documents with Timber Restoration Systems Pty Ltd as a matter of urgency.

10. That Council authorise the application of Council’s Seal to relevant contract documentation.

11. That Council forward urgent correspondence to IPART outlining the further deterioration in the Newry Island Bridge and that this was a central platform in the Special Rate Variation application.

ATTACHMENTS: 8.1A Community Update No 4 issued 2 May 2014

(DWS 439063) Report (DWS 439158)

08.012/14

RESOLVED: Cr SCOTT/Cr CARTER 1. That Council adjust the 10 Year Road Capital Works Program (3 options – with

2.3% (Rate Peg) and 11.8% Special Rate variation (with and without Local Infrastructure Renewal Scheme) by including $1,000,000 for Newry Island Bridge in 2014/15 and removing funding for Newry Island bridge in 2015/16.

2. That the funding for Newry Island Bridge be sourced from the Special Rate

Variation Loan Account as the first option, or from the following sources if the Special Rate Variation application is not successful:

Special Road Levy $103,590 S94 Funding $115,000 Internal Funding Reserve $300,000 Internal Borrowing $481,410

2013/2014 Remaining Budget $200,000 TOTAL $1,200,000

3. That as a contingency, Council submit an application to the Minister for Local Government seeking approval to borrow internally as outlined in this report noting that Council will also be seeking an approval in relation to the Dorrigo Sewerage Treatment Plant.

4. That should approval be received for the Special Rate Variation that this process be

discontinued. 5. That should approval for the Special Rate Variation and funding from the Water

Fund not be forthcoming, internal borrowing be undertaken from the Plant and Vehicle Replacement Fund.

6. That Council notes the result of the financial assessment of Timber Restoration

Systems Pty Ltd, as outlined in this report.


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7. That Council restores Newry Island Bridge with the full replacement of the entire

superstructure (including deck) with new reinforced high strength GlulamTM timber components.

8. That Council engage Timber Restorations Systems Pty Ltd at the quoted price of

$781,574.17, including GST as Council is satisfied that Section 55 (i) and (iii) of the NSW Local Government Act 1993 apply as there are extenuating circumstances for the residents of Newry Island and only one contractor is able to undertake the restoration work proposed.

9. That the General Manager be delegated the authority to finalise contract details and

documents with Timber Restoration Systems Pty Ltd as a matter of urgency.

10. That Council authorise the application of Council’s Seal to relevant contract documentation.

11. That Council forward urgent correspondence to IPART outlining the further deterioration in the Newry Island Bridge and that this was a central platform in the Special Rate Variation application.

UNANIMOUS


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9 REPORTS BY DEPUTY GENERAL MANAGER CORPORATE AND COMMUNITY

9.1 ERRATA TO 2014/2015 REVENUE POLICY

File/Index: Corporate Management – Financial Planning

Author: Jenita Ferguson, Revenue Supervisor

REPORT SUMMARY: Council has recently undertaken a review of Council’s rating categories where approximately 1400 rate categories were re-categorised. Due to the category changes Council’s Revenue Policy, adopted in February 2014, will require minor adjustment. REPORT DETAIL: On 19 February 2014 Council adopted its Integrated Planning and Reporting (IP&R) documents including the 2014/2015 Revenue Policy. This process was undertaken earlier than usual to enable lodgment of Council’s Special Rate Variation Application with the Independent Pricing and Regulatory Tribunal (IPART). At the time of adoption the Revenue Policy was compliant with the relevant legislation. Rates and charges adopted in the Revenue Policy 2014/2015 were based on forecast figures prepared in November 2013 taking into account the general re-valuation which comes into effect on 1 July 2014, and Council’s rating database position at that point in time. Concurrently underway during this period was a Rate Category Review for the purpose of ensuring legislative compliance, fairness and equity amongst ratepayers. The Rate Category Review resulted in approximately 1400 rate assessments being re-categorised for a variety of reasons including:

Compliance with the Council’s Rate Category Town boundaries and Categorisation Policies adopted 24 April 2013

Legislative compliance

Change of use

Subdivision

Sales Transfers The category review was finalised on 30 April 2014. Analysis of the rate structure adopted in the Revenue Policy in February 2014 to the re-categorised properties has resulted in the revenue yield from the base rate of the Business-Dorrigo sub-category exceeding 50% of the total yield for the category. Section 500 of the NSW Local Government Act 1993 (the Act) states the base amount of any category or sub-category must not produce more than 50% of the total amount payable (revenue yield) for that category/sub-category. Taking into account the recategorisation, the Business-Dorrigo sub-category is generating 51.315% of total yield from the base rate. The table below provides a comparison of the figures as adopted in the Revenue Policy and the figures following the rate category review changes.


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Adopted Figures as per current Revenue Policy: 2.3% Rate Peg

Post Rate Category Review Changes: 2.3% Rate Peg

Adopted Figures as per current Revenue Policy: 11.8% Special Rate Variation

Post Rate Category Review Changes: 11.8% Special Rate Variation

Whilst the assessment count remains the same (94 assessments), the mix of assessments and land values within the category has changed, resulting in an overall decrease in the rateable value. The reduction in the rateable land value has decreased the revenue yield on the ad valorem component whilst maintaining the revenue yield on the base. If Council were to levy rates based on the currently adopted Revenue Policy, a potential Land and Environment Court challenge would result in the rate being found invalid.

2014/15Assess

Count

Land

Valuation at

30 October

2013 Base Amt Ad-Valorem Base Amount Ad-Valorem Total Income Base %

Business-Dorrigo 94 9,371,800 351.00 0.00354065 32,994 33,182.26 66,176 49.858%

2014/15Assess

Count

Land

Valuation at 5

May 2014 Base Amt Ad-Valorem Base Amount Ad-Valorem Total Income Base %


2014/15Assess

Count

Land

Valuation at

30 October

2013 Base Amt Ad-Valorem Base Amount Ad-Valorem Total Income Base %


2014/15Assess

Count

Land

Valuation at 5

May 2014 Base Amt Ad-Valorem Base Amount Ad-Valorem Total Income Base %



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Discussions with the NSW Office of Local Government confirmed the legislative provisions and outlined the actions council needed to take to address the matter, as follows:

1. Provide a report to Council explaining the current situation and proposing a revised ad valorem rate for the Business-Dorrigo sub-category (this report)

2. Exhibiting the newly proposed ad valorem rate for a period of 28 days with an advertisement in the local newspaper advising the community of the proposed change.

3. Hold a Council meeting to review public submissions and adopt a revised rate prior to 30 June 2014.

To ensure compliance with The Act forecasting has been undertaken. The forecasting revealed an increase to the ad valorem rate of 0.00025 on the Business-Dorrigo sub-category will reduce the revenue yield on the base rate to 49.610% and 49.675% for Rate Peg and Special Rate Variation respectively; thereby complying with the Section 500 of The Act. This proposed ad valorem amendment will increase the previously exhibited and adopted average Business-Dorrigo annual rates payable by $3.52 per annum for the Rate Peg scenario and $1.63 per annum for the Special Rate Variation scenario. The total change in revenue for Business-Dorrigo category due to this adjustment is $330.49 (2.3%) and $152.76 (11.8%). The table below depicts average rates and change in rateable land values for the Business-Dorrigo category:

The table below reports the base yield will be 49.610% for 2.3% increase and 49.675% for 11.8% increase as discussed above and compliant with Section 500 of the NSW Local Government Act 1993.

Adopted/Exhibited in Revenue Policy - January 2014 (pre maintenance)

Assess Count Land Value Base Ad Valorem Yield Average LV Average Rates

2.30% 94 9371800 351 0.00354065 66,176.26 99,700 704.00

11.80% 94 9371800 383 0.00387542 72,321.66 99,700 769.38

Currently Adopted (after category maintenance)Assess Count Land Value Base Ad Valorem Yield Average LV Average Rates

Current Position 94 9379660 343 0.00345923 64,688.40 99,784 688.17

2.30% 94 8840900 351 0.00354065 64,296.53 94,052 684.01

11.80% 94 8840900 383 0.00387542 70,264.20 94,052 747.49

Proposed/AmendedAssess Count Land Value Base Ad Valorem Yield Average LV Average Rates

Current Position 94 9379660 343 0.00345923 64,688.40 99,784 688.17

2.30% 94 8840900 351 0.00379065 66,506.76 94,052 707.52

11.80% 94 8840900 383 0.00412542 72,474.43 94,052 771.00

Total change in revenue for this category (from what was originally exhibited and adopted)

2.30% Adopted revenue 66,176.26

Revised revenue 66,506.76

Difference 330.49$

11.80% Adopted revenue 72,321.66

Revised revenue 72,474.43

Difference 152.76$


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When comparing the Business-Dorrigo sub-category to other Business sub-categories the Business-Dorrigo sub-category remains the lowest Business rate as can also be seen in the below table.

This increase will not exceed Council’s permissible income for 2014/2015 as Council’s current position will see Council levy $4,982.42 less than its current permissible. This short fall in rates levied is able to re-couped in the 2015/2016 in accordance with Section 511 of the NSW Local Government Act 1993. Council’s Special Rate Variation Application, currently with IPART for assessment, was based on Council’s position prior to the rate category review and was compliant with the relevant legislation at the time. The NSW Office of Local Government further recommended that Council advise IPART of the proposed change to ensure transparency and compliance. The recommendation to this report addresses this issue. BUDGETARY IMPLICATIONS: Council currently has the capacity to increase rate revenue without exceeding permissible income for 2014/2015. Any excess/catch-up is able to be re-couped in the following financial year and council finance staff will ensure that this occurs. SUSTAINABILITY ASSESSMENT: This report shows that Bellingen Shire Council supports the principles stated in Section 8, the NSW Local Government Act 1993 – The Council’s Charter – which states that a council is to “raise funds for local purposes by the fair imposition of rates, charges and fees…”

PROPOSED CHANGE - 2.3% Rate Peg Only

2014/15Assess

Count

Land

Valuation

Base Amt -

2.3%

increase Ad-Valorem

Base

Amount Ad-Valorem Total Income Base %

Average

Rates Average LV

Business 132 27,571,235 384.00 0.00216428 50,688 59,671.87 110,360 45.930% 836.06 208,873

Business-Dorrigo 94 8,840,900 351.00 0.00379065 32,994 33,512.76 66,507 49.610% 707.52 94,052

Business-Bellingen 101 24,203,590 384.00 0.00311681 38,784 75,437.99 114,222 33.955% 1,130.91 239,640

Business-Urunga 66 21,129,870 384.00 0.00333032 25,344 70,369.23 95,713 26.479% 1,450.20 320,150

PROPOSED CHANGE - 11.8% Special Rate Variation

2014/15Assess

Count

Land

Valuation

Base Amt -

11.8%

increase Ad-Valorem

Base

Amount Ad-Valorem Total Income Base %

Average

Rates Average LV

Business 132 27,571,235 419.00 0.00236842 55,308 65,300.26 120,608 45.858% 913.70 208,873

Business-Dorrigo 94 8,840,900 383.00 0.00412542 36,002 36,472.43 72,474 49.675% 771.00 94,052

Business-Bellingen 101 24,203,590 419.00 0.00340900 42,319 82,510.04 124,829 33.902% 1,235.93 239,640

Business-Urunga 66 21,129,870 419.00 0.00364164 27,654 76,947.38 104,601 26.438% 1,584.87 320,150


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There are no economic, environmental or social implications for Bellingen Shire Council. However there are economic implications for rate payers of the Business-Dorrigo category who will receive a small increase to the average rates payable for 2014/2015 as outlined in this report. ENGAGEMENT: The Bellingen Shire Council Community Engagement Strategy was adopted by Council at its meeting of 22 February 2012. This Strategy is designed to outline the approach Bellingen Shire Council takes towards engaging with our Community. Having regard to the Community Engagement Strategy, it is considered that adopting the recommendation in this report is appropriately categorised as having a Level 4 impact (i.e. Lower impact – local). Prior to the preparation of this report consultation occurred with:

Leader Performance and Compliance, Office of Local Government Performance Analyst, Office of Local Government Deputy General Manager, Corporate & Community, Bellingen Shire Council Manager Finance, Bellingen Shire Council General Manager

The errata to the Revenue Policy will go on public exhibition for 28 days following this report with submissions provided to council at the June 2014 ordinary meeting. SHIRE OF BELLINGEN 2030 COMMUNITY VISION ALIGNMENT: This project aligns with the following strategic direction within the Shire of Bellingen 2030 Community Vision:

Civic Leadership – Our Community is informed and engaged with a strong sense of civic leadership.

o The community is engaged in decision making and implementation using modern communication methods.

Civic Leadership – Council is proactive in representing the needs of our community. OFFICER’S RECOMMENDATION:

1. That Council place on public exhibition for a period of 28 days the proposed adjustment to the ad valorem rate for Business-Dorrigo sub-category.

2. That Council advertise the proposed adjustment to the ad valorem rate for Business-Dorrigo sub-category notifying ratepayers they have 28 days to make a submission in relation to the revised rate.

3. That Council receives a further report on 25 June 2014 to consider submissions received.

4. That Council updates IPART on the Revenue Policy changes to ensure transparency and compliance.

ATTACHMENTS: There are no attachments for this report.


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09.020/14

RESOLVED (Cr Scott /Cr Carter) 1. That Council place on public exhibition for a period of 28 days the proposed adjustment to

the ad valorem rate for Business-Dorrigo sub-category. 2. That Council advertise the proposed adjustment to the ad valorem rate for Business-

Dorrigo sub-category notifying ratepayers they have 28 days to make a submission in relation to the revised rate.

3. That Council receives a further report on 25 June 2014 to consider submissions received. 4. That Council updates IPART on the Revenue Policy changes to ensure transparency and

compliance.

UNANIMOUS


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10 MINUTES FROM ADVISORY COMMITTEES

There are no Minutes to be presented from Advisory Committees.

11 CORRESPONDENCE

There are no items of correspondence to be discussed.

12 AUTHORITY TO AFFIX THE COMMON SEAL OF COUNCIL FOR ITEMS NOT INCLUDED IN REPORTS

There were no requests to affix the Common Seal of Council.

13 ITEMS FOR INFORMATION

There are no items for information.

14 MATTERS OF AN URGENT NATURE

There are no matters of an urgent nature.

15 QUESTIONS WITH NOTICE

There were no Questions with Notice received for this Agenda.

16 COMMITTEE OF THE WHOLE

There are no items for the Committee of the Whole.


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17 REPORT ATTACHMENTS 8.1A COMMUNITY UPDATE NO 4 ISSUED 2 MAY 2014 ................................................... 11

Meeting concluded at 5.20pm Signed: Cr Mark Troy CHAIRPERSON

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