city of canning...2020/07/30 · waiving of inspection fees for food businesses, rental abatements...

Confirmed Minutes

Special Council Meeting

30 July 2020

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.

R• CITY OF ~Ill' CANNING

SPECIAL COUNCIL MEETING CONFIRMED MINUTES 30 JULY 2020

Page ii

TABLE OF CONTENTS

ITEM SUBJECT PAGE NO

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

2. ATTENDANCE ....................................................................................................................... 3

2.1 Apologies ............................................................................................................................. 3

2.2 Approved Leave of Absence ................................................................................................ 3

3. DISCLOSURE OF INTERESTS .................................................................................................. 4

3.1 Declarations of Interest (Financial) ...................................................................................... 4

3.2 Declarations of Impartiality ................................................................................................. 4

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

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

5.1 Petitions .............................................................................................................................. 5

5.2 Presentations ...................................................................................................................... 5

5.3 Deputations ......................................................................................................................... 5

6. REPORTS .............................................................................................................................. 5

6.1 Director Canning Community and Commercial .................................................................... 6

CC-048-20 2020-2021 Fees and Charges ....................................................................... 6

CC-049-20 2020-2021 Rate Charges ............................................................................ 24

CC-050-20 2020-2021 Rates Payment and Incentive Scheme ...................................... 39

CC-051-20 2020-2021 Annual Budget ......................................................................... 51

7. CONFIDENTIAL REPORTS ................................................................................................... 62

7.1 Director Canning Community and Commercial .................................................................. 63

CC-035-20 Intermodal Freight and Logisitics Opportunities for the City of Canning ..... 63

8. CLOSURE ............................................................................................................................ 64

CONFIRMED MINUTES OF THE SPECIAL COUNCIL MEETING 30 JULY 2020

Page 1

CONFIRMED MINUTES OF SPECIAL COUNCIL MEETING

HELD IN THE FUNCTION ROOM - ADOPTION OF 2020/2021 ANNUAL BUDGET

ON THURSDAY, 30 JULY 2020

1. DECLARATION OF OPENING/ANNOUNCEMENT OF VISITORS/DISCLAIMER

The Mayor declared the Special Council Meeting of 30 July 2020 open at 6.00pm and stated:

“We acknowledge the Wajuk (Wudjyuk) people, the traditional custodians of the land. We also pay our respects to Elders, both past and present.

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 remainder of the Disclaimer can be seen of the screen.”

Council Meetings are public meetings and any information you provide shall 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.

Announcement by the Mayor:

“Welcome to this evening’s Special Council Meeting regarding the adoption of the City of

Canning’s 2020/2021 Annual Budget.

The 2020/21 Budget is a significant one for our City, and it has been modelled during a

unique period of global uncertainty which will long be remembered.

This budget has been drafted with a particular focus, which is to help our community

recover from the economic and social impacts of COVID-19, and in doing so Canning will

also be directly contributing to the recovery of Western Australia.

We’ve included the commitments of the $16.5 million budget relief package we announced

in April this year. This includes a freeze on rate revenue which recognises that a number of

our residents are experiencing unforeseen hardship. The budget relief package includes:

no increase to residential or non-residential rates,

no increase in the waste service fee, transfer station fees, or the security charge,

G7; CITY OF CANNING


Page 2

deferral of any new underground power charges for 12 months,

waiving of inspection fees for food businesses,

rental abatements granted with regard to rent for City owned premises,

delay of the first rates instalment due date to November 2020,

extended payment terms and concessions on interest charges in accordance with the,

Financial Hardship Policy FM.13,

maintaining creditor terms of under 14 days for all small and medium businesses,

appropriate allocation of funds for the Connect in Canning project to support,

community led initiatives and the connection of vulnerable people to identified,

community support,

suspension of interest, charges and penalties for ratepayers,

the bringing forward of capital projects that stimulate the local economy, create jobs

and keep people in work,

other initiatives to stimulate local business and assist in the recovery process

developed in consultation with local businesses and the community.

Council also decided to bring forward future capital works to stimulate our local economy

and help boost local jobs.

In 2020-21 the City will invest a total of $162 million into the City. This investment is for now

and the future. Highlights of the budget include:

$20.8 million to manage urban forests, parks, sporting reserves and sustainability

initiatives,

$1.1 million supporting community participation and community activation,

$3.6 million dedicated to community safety,

$12 million to maintain and expand transport infrastructure,

$15.4 million to manage our waste and recycling,

$26.5 million to provide, expand and improve our community facilities,

$13.5 million to manage our recreational centres.

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.

If approved tonight over 99% of our ratepayers will pay less or the same amount in rates as

they did last year, and this figure includes 100% of our residential ratepayers.

We are playing our part to stimulate the economy, as we must, and by utilising existing and

borrowed funds, we have been able to bring forward major projects to support local

businesses, to generate local jobs, and to keep Canning moving.

To deliver this budget and to achieve its objectives we have also had to tighten our belts.

There is no doubt our cash flow will be significantly affected and the City of Canning will be

facing a challenging period financially. It is a situation which will not be unique to Canning

and which will be experienced right across the local government sector.

It was with compassion in mind, balanced with the financial responsibility entrusted to us by

our community, that we set out to build our 2020/21 budget and I am very proud of what

Council and the City’s administration have achieved together.


Page 3

Many hours and many late nights, by Council and the City’s staff, have resulted in tonight’s

draft budget and I would like to take the opportunity to acknowledge the commitment of

those involved. I would also like to thank those members of the public who engaged with

the City and put forward their own views. Your opinions were valuable and have been

considered by Council.

These uncertain times require agile decision-making and sound financial management, and

going forward it is our intention to regularly review the 2020-21 budget in response to

material changes in the economy which may impact on Canning’s finances.

Finally, I look forward to working together with my fellow Councillors and our community to

set Canning on the path to recovery, and tonight’s draft budget will be the first step in that

process”.

2. ATTENDANCE

Mr P Hall Mayor Deputy Mayor Jacobs Mason Cr M Bain Beeloo Cr G Barry Mason Cr L Holland Beeliar Cr B Kunze Bannister Cr Y Ponnuthurai Beeliar Cr T Porter Nicholson Cr A Spencer-Teo Bannister Cr C Sweeney Nicholson 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 Cornish Supervisor Governance and Compliance Ms S Johnson Governance Officer Members of the Public

There was one member of the public gallery in attendance. Staff Members in Public Gallery

Mr S Leeson Executive Manager Business Canning Mr H Attawala Manager Finance & Asset Management Ms S Teoh Management Accountant Mr A Vanga Financial Analyst Mrs N Hett Leader Revenue

2.1 Apologies

Cr S Saberi Beeloo

2.2 Approved Leave of Absence

Nil.


Page 4

3. DISCLOSURE OF INTERESTS

3.1 Declarations of Interest (Financial)

Nil.

3.2 Declarations of Impartiality

Elected Member

Order of Business/ Report No

Agenda Page No

Item Details Nature of Association

Cr Sweeney CC-035-20 Page 3 of the Confidential

Agenda

Intermodal Freight and Logistics Opportunities for the City of Canning.

I am a resident and operate and own a business in Canning Vale.

4. QUESTION TIME FOR PUBLIC

The Mayor opened question time at 6.07pm.

The Mayor advised: “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 questions with the City’s Administration, shall be called upon in the order in which registrations were received. Written questions will precede verbal questions. “

Mr R Aldridge, Monota Avenue, Shelley

Question 1: What cost cutting measures has the Chief Executive Officer and his administration implemented since the start of COVID-19 and the resultant economic downturn?

Response 1: The Chief Executive Officer advised that as a part of putting this budget together, the City has reviewed its current costings as an organisation. Those cuts have been incorporated in the budget and we are making ongoing investigations into other cost reduction methods in the organisation. This is a living budget - as we go forward we will continue to review the costs and where necessary, make decisions at an operational level and as necessary, those decisions may be brought before Council.

Question 2: Is it really the best that this administration and this Council can do, to just keep rates the same, can we not try and think of rebates for people that have been affected by COVID-19?

Response 2: The Director Canning Community and Commercial advised that a number of measures have been put in place to reduce the financial burden on ratepayers. The City is not charging instalment and penalty interest relative to rates, and will offer alternative rate payment options and has also reviewed some fees and charges. The City has introduced the Financial Hardship policy for those affected by the Covid-19 down turn.


Page 5

Ratepayers can contact the City if they are in financial hardship and the City can negotiate potential alternative arrangements to defer rates for a period of time.

Question 3: It is my understanding that out of the $16m for Covid-19 relief, $11.5 is being used to bring forward capital works. In what way does bringing forward capital works help the average ratepayer as far as Covid-19 goes?

Response 3: The Director Canning Community and Commercial advised that one of the roles that local government plays in the economy is to help stimulate jobs and help keep the economy ticking over. Bringing forward capital works projects provides the opportunity for local contractors and people employed by local contractors to continue to be employed. It provides services to ensure those projects are completed - those projects are intended to help stimulate economy and provide jobs for people. It is an important role for Council in the recovery from the Covid-19 downturn.

With no further questions from the public, the Mayor closed Public Question Time at 6.12pm.

5. RECEIVING OF PETITIONS, PRESENTATIONS AND DEPUTATIONS

5.1 Petitions

Nil.

5.2 Presentations

Mr Steve Leeson, Executive Manager Business Canning made a presentation regarding the 2020/2021 Annual Budget.

5.3 Deputations

Nil.

6. REPORTS


Page 6

CC-048-20 2020-2021 Fees and Charges CC-048-20

6.1 Director Canning Community and Commercial

CC-048-20 2020-2021 Fees and Charges

PROGRAM: Canning Community and Commercial

SUB PROGRAM: Business Canning

FILE REF: Q20/134

REPORT DATE: 28 July 2020

REPORTING OFFICER: Steve Leeson - Executive Manager Business Canning

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. Proposed City of Canning 2020-2021 Schedule of Fees and Charges (D20/85105). (Large Attachments)

In Brief:

As part of the 2020-2021 Annual Budget, the purpose of this report is to adopt the 2020-2021 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. The report also intends to impose continuing 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 City service fees and charges not imposed under legislation. Changes have been made to City’s 2020-2021 Fees and Charges in response to COVID-19 and Ministerial Order 2020.

Council is asked to support the Officer Recommendation because:

a) The report recommendations forms part of adopting the City’s 2020-2021 Annual Budget; and

b) The attached Schedule of Fees and Charges for 2020-2021 includes a number of community and ratepayer support measures in response to COVID-19.

If the Officer Recommendation is not supported:

a) No changes to fees and charges are made;

b) The City’s proposed 2020-2021 Annual Budget will not be consistent with imposed fees and charges; and

c) Should the City’s 2020-2021 Annual Budget not be adopted before 31 August 2020, Ministerial approval will be required in accordance with the Local Government Act 1995.


Page 7


CC-048-20 COUNCIL DECISION

MOVED Cr Barry, SECONDED Cr Holland, that Council:

1. Pursuant to Section 6.16 of the Local Government Act 1995; adopts the City of Canning ‘Schedule of Fees and Charges 2020-2021’ included as Attachment 1.

2. Pursuant to Section 6.38(1) of the Local Government Act 1995 and Regulation 54 of the Local Government (Financial Management) Regulations 1996, imposes 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.

CARRIED BY ABSOLUTE MAJORITY 10/0

Relevant Council Resolutions

Council Meeting and Date Report No Decision

15 August 2019

CC-037-19 2019-2020 Fees and Charges

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.


Page 8




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.

SCM 30 April 2020 CC-015-20 Community and Business Support - Phase 1 Response

1. Adopts the proposed policy FM.13 Financial Hardship – Collection of Property Rates, Fees and Charges as contained in Attachment 1 to allow for the cessation of penalty interest, a pause on payments for up to six months and the establishment of alternate payment arrangements. 2. Requests the Chief Executive Officer to prepare a draft 2020-2021 Budget to include the following: a) No increase to residential or non-residential rates; b) No increase in the waste service fee, transfer station fees, or the security charge; c) Deferral of any new underground power charges for 12 months; d) Waiving of inspection fees for food businesses; e) Rental abatements granted with regard to rent for City owned premises; f) Delay of the first rates instalment due date to November 2020. g) Extended payment terms and concessions on interest charges in accordance with the Financial Hardship Policy FM.13; h) Maintaining creditor terms of under 14 days for all small and medium businesses; i) Appropriate allocation of funds for the Connect in Canning project to support community led initiatives and the connection of vulnerable people to identified community supports; j) The bringing forward of capital projects that stimulate the local economy, create jobs and keep people in work; and


Page 9




k) Other initiatives to stimulate local business and assist in the recovery process developed in consultation with local businesses and the community. 3. Requests the Chief Executive Officer to undertake a review of the waste collection service with regard to the changing needs of the community, given the impacts of the COVID-19 pandemic and report back to the May Ordinary Council Meeting. 4. Requests the Chief Executive Officer to undertake further modelling and report back as part of the draft budget process, on the impacts and potential outcomes of the following: a) A part rate reduction within the 2020 – 2021 Annual Budget; b) The complete removal or reduction of instalment interest for the 2020 – 2021 financial year; and c) The introduction of a rate rebate voucher to be spent with local City of Canning businesses. 5. Approves the redirection of $80,000 from remaining grant funds for 2019 - 2020 to establish the Canning Resilience Grants and that these grants be made available to not-for-profit organisations, unincorporated groups, and small businesses operating within the City of Canning. 6. Authorises the Mayor and Chief Executive Officer to write to the Minister for the Environment, the Hon Stephen Dawson MLC, requesting that the State Government: a) make emergency funding available in the upcoming 2020/2021 State Government Budget to assist Local Governments respond to the immediate challenges in the recycling industry, especially within the COVID-19 environment. b) commit to reinvest 100% of the revenue accrued through the Landfill Levy into waste avoidance, management and recycling


Page 10




programs as per the Levy’s original objective.

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), allows 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 of Canning (the 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 2020-2021 Annual Budget has been prepared in response to COVID-19 (CC-015-20 Community and Business Support - Phase 1 Response) and the Minister’s Local Government (COVID-19 Response) Order 2020. A number of fees and charges have been frozen or removed as a result.

5 The budget follows the same format as previous years, and identifies funding requirements for waste removal, security services and underground power. The 2020-2021 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 only incur applicable fees and or service charges.

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

7 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.

8 Further underground power schemes are planned for the suburb of Shelley. Construction will commence in 2020-2021 with service charges to commence in 2021-2022.

9 The 2020-2021 Annual Budget has been prepared in response to COVID-19 (CC-015-20 Community and Business Support - Phase 1 Response), NOM-005-20 Suspension of Interest Charges and Penalties for Ratepayers and the Minister’s Local Government (COVID-19 Response) Order 2020.

10 The COVID-19 pandemic has and will continue to impact upon the economic situation of the City’s residents and local businesses. Council’s Elected Members and administration have expressed a shared concern for the community, supported through freezing, waiving and removing a number of 2020-2021 Fees and Charges.

DETAILS

11 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).


Page 11


Waste Removal

12 Included as Attachment 1, are the proposed City wide Schedule of Fees and Charges for the 2020-2021 financial year. Incorporated into these fees and charges are the Waste Removal Fees for 2020-2021 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 2020-2021 Budget.

2019-2020 2020-2021

Residential/Non Residential $381.50 31,707 $381.50 31,707

Exempt $501.50 320 $501.50 320

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

Pensioner/Senior Exempt $442.50 265 $442.50 265

Additional Service *GST $419.65 735 $419.65 735

Additional Service Exempt *GST $551.65 90 $551.65 90

Additional Yellow * GST $19.80 178 $19.80 178

39,778 40,722

13 The above charges represent no increase from those set in the previous 2019-2020 financial year.

14 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.

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

Property Surveillance and Security

16 During 2020-2021, 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

2019-2020 Property Surveillance and Security 2019-2020 2020-2021

$ $ $

2,359,252 Income 2,349,349 2,351,398

- Service charge income (charge per property) - -

- Surplus Funds Carried Forward - -

2,359,252 Other income (interest earnings) 2,349,349 2,351,398

(5,000) Subscriptions (GPS / After Hour Service) (5,700) (5,000)

(11,821) Administration (3,793) (11,821)

(151,703) CCTV and Community Safety Initiatives (235,921) (190,278)

(39,196) Non Recurrent Items (Vehicle replacement) (37,748) (46,495)

(105,000) Vehicle operating and misc. equipment replacement (104,638) (105,000)

(2,009,169) Employee related expenditure (2,013,904) (2,050,072)

(2,321,890)

(2,401,703) (2,408,666)

37,362 Unspent/(Overspent) Balance to / (from) Reserve (52,355) (57,268)


Page 12


* Any surplus or deficit amounts will be offset or recovered in later years. The actual amounts are subject to confirmation. Any incomplete 2019-2020 projects and safety initiatives are carried forward, and the budget amended accordingly as part of the budget review process.

17 In accordance with Section 6.38 (5)(b) of the Act, if the City was 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

18 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

19 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

20 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).

21 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.

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


Page 13


Proposed Bontloy E•s• Undorground Powor Projocl

N

STATE U DERGROU D PO R PROG

BE TLEY EAST AREA


Page 14


23 The service charges to be imposed for the 2020-2021 financial year are defined as:

Annual

Annual

Service Service

Charge Description Charge

2019-2020 Bentley East – Underground power instalments 2020-2021 $

$

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


Page 15


Annual Annual

Service Service

Charge Description Charge 2019-2020 Bentley East – Underground power instalments 2020-2021

$ $

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

24 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.

25 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.

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

Adopted

Draft

Budget Description Actual Budget

2019-2020 Bentley East – Service charge application 2019-2020 2020-2021

$

$ $

253,560 Service Charge Raised 259,725 257,559

0 Unspent/(Overspent) Balance Carried Forward 0 0

253,560

259,725 257,559

Less Expenses

(217,974) Loan Repayment Principal. (217,974) (229,243)

(35,586) Loan Repayment Interest. (37,823) (28,316)

(253,560)

(255,797) (257,559)

0 Unspent/(Overspent) Balance Carried Forward 3,927 0

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

Wilson West

27 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.

Description of Land

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

29 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.

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


Page 16


31 The service charges to be imposed for the 2020-2021 financial year are defined as:

Annual

Annual

Service

Service


2019-2020 Wilson West – Underground power instalments 2020-2021

$ $

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

Annual

Annual


Page 17


Service

Service


2019-2020 Wilson West – Underground power instalments 2020-2021

$

$

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

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

32 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.

33 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.


Page 18


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

Draft


2019-2020 Wilson West – Service charge application 2019-2020 2020-2021

$

$ $



Less Expenses

(215,932) Loan Repayment Principal (215,932) (227,096)

(35,252) Loan Repayment Interest (37,469) (26,913)

(251,184)

(253,401) (254,009)



35 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 eighth year of the 10 year loan period.

Description of Land

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

37 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.

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


Page 19


39 The service charges to be imposed for the 2020-2021 financial year are defined as :

Annual Annual

Service Service


2019-2020 Wilson East - Underground power instalments 2020-2021

$ $

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 / internal


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 / internal


4,329.68

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

/ internal power connection ($0)

22,947.29

40 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 20


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

Adopted

Draft


2019-2020 Wilson East – Service charge application 2019-2020 2020-2021

$

$ $



Less Expenses

(262,493) Loan Repayment Principal (262,493) (272,586)

(42,806) Loan Repayment Interest (46,852) (38,771)

(305,299)

(309,345) (311,357)



Other Charges

42 Previous City budgets have included a merchant fee surcharge to partly recoup the cost of card banking transactions. Since COVID-19 the City, and in general, there has been a substantial reduction in payments made by cash, which are the least efficient method of payment for City fees and charges. To implement a cashless Canning strategy which achieve administrative efficiencies, it is proposed to not charge a merchant fee surcharge on payments made by Visa / MasterCard credit or debit cards. No charge for EFTPOS transactions will continue. This would forego $60,000 in previous revenue to the City.

43 In response to COVID-19 and consistent with report CC-015-20 Community and Business Support - Phase 1 Response, it is further proposed:

a) to not charge interest on overdue sundry debt owed to the City in support of small business during 2020-2021. The proposed rate as part of the 2019-2020 annual budget was 3.25%;

b) to not charge penalty interest on overdue rates in 2020-2021, foregoing $260,000 in previous revenue to the City;

c) to not charge interest on rates paid by instalments in 2020-2021, foregoing $340,000 in previous revenue to the City, and

d) to not charge compliance fees on food premise registration / inspection fees, foregoing $180,000 in previous revenue to the City.

CONSIDERATIONS

Legal Compliance

44 On 16 April 2020 State Parliament passed Local Government Amendment (COVID-19 Response) Act 2020. This Act provided a power to enable the Minister for Local Government to modify or suspend provisions of the Local Government Act 1995 and Regulations while a State of Emergency declaration is in force and where the Minister considers that such an order is necessary to deal with the consequences of the COVID-19 pandemic.


Page 21


45 On 7 May 2020, the Minister issued Local Government (COVID-19 Response) Order 2020. Clause 7 sets aside the requirement to prepare the Annual Budget with regard to the plan for the future, to address the more pressing and unforeseen consequences of the COVID-19 pandemic. The City’s proposed 2020-2021 Annual Budget and in particular this report has been drafted in accordance with the Minister’s order. Clauses 8, 13, and 14 prescribe limits on local government fees and charges in preparing their annual budgets for 2020-2021.

46 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.

47 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.

48 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.

49 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

50 FM.05 Budget Preparation.

51 Rating Strategy 2018 – 2023.

Financial Considerations

Business Plan

52 The matters of this report relate to the following areas of the City’s Business Plan:

53 Business Canning.

Safe Canning.

Clean Canning.

Internal Budget

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

55 This report forms part of the 2020-2021 Annual Budget and information is disclosed in the Statement of Financial Activity.

Asset Management

56 Not applicable.


Page 22


Sustainability Considerations

57 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 financially responsible.

58 The COVID-19 pandemic’s effect upon the world and local economy will be long lasting. The City’s non-rating revenues have been reduced, along with changes to existing rates collection practices. Future City income will be different into the immediate future. This will be reflected within preparations for the City’s third long term financial plan.

Consultation

59 Local public notice is provided of any new City’s imposed fees and charges following budget adoption.

Other Considerations or Risks

60 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.

61 The current 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.

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 FM.05 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.

The draft Annual Budget was prepared within the City’s IPR framework and policy

Almost Certain Moderate High (Risk)


Page 23



Actions Consequence

Likelihood X

Consequence Rating


Potential financial loss.

FM.05 Budget Preparation through Council workshops.

COMMENT

62 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.

63 Pursuant to Section 5.42 of the Local Government Act 1995, the Chief Executive Officer is delegated with the setting of discounts to the adopted Schedule of Fees and Charges 2020-2021, to facilitate discounting of non-imposed fees and charges, in accordance with Section 6.12(1)(b) of the Local Government Act 1995. This would be used for marketing and promotional purposes.

64 Preparations for the Shelley Underground Power Project are underway and planned to commence in 2020-2021, although Western Power has deferred cash calls from the City and in turn its rate payers, until 2021-2022.

65 It is forecast that the City will receive $1.66M less in fees and charges revenue in 2020-2021 compared to last year.

VOTING REQUIREMENT

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

AGENDA BRIEFING COMMENT

67 Not applicable.


Page 24

CC-049-20 2020-2021 Rate Charges CC-049-20

CC-049-20 2020-2021 Rate Charges



FILE REF: Q20/143


REPORTING OFFICERS: Steve Leeson - Executive Manager Business Canning

Amuly Vanga - Financial Analyst

Natalie Hett - Leader Revenue





Attachments: 1. 2020-2021 Community and Charitable Rating Exemptions and Concessions (D20/95335).

2. Notice of Intention to Levy Differential Rating 2020-2021 Submissions (D20/95904).

In Brief:

As part of the 2020-2021 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.

As a response to COVID-19 and effects of the Valuer General’s triennial revaluation of City properties gross rental values used as a base for apportioning City rating requirements, the use of Local Government Act 1995 section 6.47 concessions, along with endorsing rating exemptions for community and charitable purposes, is also considered.

In line with the Council adopted position of a ‘rates freeze’, the adoption of these rates will ensure that approximately 99% of ratepayers in the City of Canning pay no more in property rates and charges than they did in the 2019-20 financial year.


a) The report recommendations form part of adopting the City’s 2020-2021 Annual Budget;

b) The proposed general differential rate in the dollar amounts and minimum rates amounts, form the basis for meeting City rating revenue requirements; and

c) The use of concessions aims to meet community and ratepayer support measures in response to COVID-19.

If the Officer Recommendation is not supported;

a) The City’s proposed 2020-2021 Rates Notice cannot be issued at this time;

b) The City’s proposed 2020-2021 Annual Budget will not be consistent with proposed rating; and


Page 25


c) Should the City’s 2020-2021 Annual Budget not be adopted before 31 August 2020, Ministerial approval will be required in accordance with the Local Government Act 1995.


MOVED Cr Spencer-Teo, SECONDED Cr Ponnuthurai, 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 2020-2021 financial year:

a) Residential Improved Land.

$0.05642288 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. Pursuant to Section 6.47 of the Local Government Act 1995, where general property rating for 2020-2021 has increased as compared to 2019-2020, due to the revaluation of property gross rental values and application of the general rate in the dollar amounts at 1(a) (b) and (c) above, resolves to grant general rating concessions of up to $2,000 for affected properties.

3. Adopts a Specified Area Rate for the 2020-2021 Financial Year of $0.00497213 to be imposed on the property Gross Rental Values of that portion of the district in the City of Canning known as the Canning Vale Estates, as described in the Schedule to the Order as Council published in the Government Gazette on 22 July 1994, page 3763.

4. 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.




OCM 16 June 2020 CC-030-20 Proposed Differential Rating 2020-2021

1. Approves the following differential rates and minimum rates for advertising, in accordance with Section 6.36 of the Local Government Act 1995: 2020-2021 Rate in $ / Minimum Residential $0.05558002 / $852.00 Non Residential $0.05247501 / $852.00 Unimproved $0.07990013 / $852.00 2. Considers any public submissions relating to the above


Page 26




proposed differential rates, as part of the future Council reports which propose the adoption of the 2020-2021 Annual Budget. 3. Requests the Chief Executive Officer to provide Council with rates models incorporating a concession under s.6.47 (Local Government Act 1995) that ensures rates bills for properties not subject to an interim valuation are the same for 2020-21 as for 2019-20.


1. Adopts the proposed policy FM.13 Financial Hardship – Collection of Property Rates, Fees and Charges as contained in Attachment 1 to allow for the cessation of penalty interest, a pause on payments for up to six months and the establishment of alternate payment arrangements. 2. Requests the Chief Executive Officer to prepare a draft 2020-2021 Budget to include the following: a) No increase to residential or non-residential rates; b) No increase in the waste service fee, transfer station fees, or the security charge; c) Deferral of any new underground power charges for 12 months; d) Waiving of inspection fees for food businesses; e) Rental abatements granted with regard to rent for City owned premises; f) Delay of the first rates instalment due date to November 2020. g) Extended payment terms and concessions on interest charges in accordance with the Financial Hardship Policy FM.13; h) Maintaining creditor terms of under 14 days for all small and medium businesses; i) Appropriate allocation of funds for the Connect in Canning project to support community led initiatives and the connection of vulnerable people to identified community supports; j) The bringing forward of capital


Page 27




projects that stimulate the local economy, create jobs and keep people in work; and k) Other initiatives to stimulate local business and assist in the recovery process developed in consultation with local businesses and the community. 3. Requests the Chief Executive Officer to undertake a review of the waste collection service with regard to the changing needs of the community, given the impacts of the COVID-19 pandemic and report back to the May Ordinary Council Meeting. 4. Requests the Chief Executive Officer to undertake further modelling and report back as part of the draft budget process, on the impacts and potential outcomes of the following: a) A part rate reduction within the 2020 – 2021 Annual Budget; b) The complete removal or reduction of instalment interest for the 2020 – 2021 financial year; and c) The introduction of a rate rebate voucher to be spent with local City of Canning businesses. 5. Approves the redirection of $80,000 from remaining grant funds for 2019 - 2020 to establish the Canning Resilience Grants and that these grants be made available to not-for-profit organisations, unincorporated groups, and small businesses operating within the City of Canning. 6. Authorises the Mayor and Chief Executive Officer to write to the Minister for the Environment, the Hon Stephen Dawson MLC, requesting that the State Government: a) make emergency funding available in the upcoming 2020/2021 State Government Budget to assist Local Governments respond to the immediate challenges in the recycling industry, especially within the COVID-19 environment. b) commit to reinvest 100% of the


Page 28




revenue accrued through the Landfill Levy into waste avoidance, management and recycling programs as per the Levy’s original objective.

15 August 2019 Special Council Meeting

CC-038-19

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. $0.047668 to be imposed on property Gross Rental Values, subject to a minimum rate of $852 per assessment. c) Unimproved Land. $0.074623 to be imposed on property Gross Rental Values, subject to a minimum rate of $852 per assessment. 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.

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.

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.


Page 29


2 Landgate determines all properties’ Gross Rental Valuations (GRV), and undertakes a revaluation process on a three-yearly cycle. The valuations applied in the previous triennial cycle, effective from 1 July 2017, resulted in disparate increases or decreases on GRV weightings between residential and non-residential properties across the City of Canning (the City), which led to the introduction of differential rating. The 2020-2021 financial year is the first year in the new triennial revaluation period.

3 Prior to this, GRV’s had consistently increased. Because the City’s rating requirements are apportioned across total City GRV to determine the rate in the dollar charge to individual properties, when the GRV’s increased, the City previously reduced the rate in the dollar:

Revaluation Year Previous Rate in $ New Rate in $ $ Change

2014-2015 4.3413 3.7340 -13.99%

2011-2012 5.0350 4.0540 -19.48%

2008-2009 5.7000 4.6200 -18.95%

2005-2006 6.0400 5.4300 -10.10%

2002-2003 6.0000 5.8000 -3.33%

1999-2000 6.3700 5.7000 -10.52%

4 The City adopted its Rating Strategy 2018-2023 on 15 May 2018, which considers the fair and equitable share of rates to be paid by each property owner and occupant, for City’s services and infrastructure delivery, which meets the community’s current and future needs.

5 Differential rating enables the City to vary the impact of its rates on different categories of land to ensure an equitable contribution in the share of the rating burden. It can ensure rates generated from types of land use remain consistent with rating apportionment objectives and similar to prior year allocations, across revaluation years.

6 The 2020-2021 Annual Budget has been prepared in response to COVID-19 (CC-015-20 Community and Business Support - Phase 1 Response) and the Minister’s Local Government (COVID-19 Response) Order 2020.

7 As required under the Local Government Act 1995 section 6.36(4) the proposed City 2020-2021 rating requirements and apportionments were advertised to the Community and their submissions sought.


Page 30


DETAILS

8 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:

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.

9 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

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

11 Due to the effect of the triennial revaluation effective 1 July 2020, which decreased the overall GRV amount for these properties, to ensure that the apportioned amount of total City rating requirements from residential properties remains essentially consistent with previous years, the rate in the dollar charge increases compared to 2019-2020.

12 The amount of City rating revenue apportioned is for 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.

13 No increase in the overall contributions from existing residential improved properties for rates, fees or charges, including the minimum rate payable is proposed or intended for 2020-2021 in response to COVID-19.

Non-residential Improved Land

14 This incorporates all light industry, general industry, commercial, mixed use, service commercial, and local centre properties.

15 Due to the effect of the triennial revaluation effective 1 July 2020 in which overall change for these types of properties was less than that for residential improved properties, a negative differential rate (lower than residential) for non-residential improved land is proposed, so to maintain the currently higher apportionment of rating contribution from non-residential improved land 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.

16 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.

17 No increase in the overall contributions from existing non-residential improved properties for rates, fees or charges, including the minimum rate payable is proposed or intended for 2020-2021 in response to COVID-19.

Unimproved Land (Residential / Non Residential)

18 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.


Page 31


19 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.

20 The previous 2019-2020 positive differential of 160% on unimproved land (above the residential GRV rate) was based upon the City’s Rating Strategy 2018-2023 three year strategy to increase this differential to 200% as permissible under the Act and in line with other Perth metropolitan local governments. Due to the effect of the triennial revaluation effective 1 July 2020 in which overall change for these types of properties was less than that for residential improved properties, the proposed differential is 140%, which maintains the rating apportionment consistent with 2019-2020 as a response to COVID-19.

Minimum Rate

21 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.

22 The Act does not stipulate an appropriate value for the minimum payment or how it might be determined. It is determined individually by each local government so 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. Although the City’s Long Term Financial Plan 2017–2027 has been set aside in preparing the 2020-2021 Annual Budget, following the Minister’s Local Government (COVID-19 Response) Order 2020, the objective under the strategy is to achieve parity in minimum rate charges over the long term.

23 A uniform minimum rate is proposed to continue across all rate categories for the 2020-2021 financial year. The minimum rate has been maintained at the previous year amount in response to COVID-19, consistent with the basis that all ratepayers must make a reasonable contribution to the cost of the City's services, facilities and infrastructure. The proposed rate remains at $852.

General Rating Estimates

24 The deficiency of expenditure over income for the purpose of striking the differential and minimum rate for the 2020-2021 financial year amounts to $69,066,939 after application of rating concessions. This is with the objective of Council to implement a freeze on the amount of rates collected from ratepayers as per CC-015-20 Community and Business Support - Phase 1 Response. This 2020-2021

budgeted rating revenue amount, takes into account additional rating revenue from new ratepayers and those properties which have been substantially improved. It is not intended that this additional rating revenue (known as rates growth) is used to provide a rating reduction to existing City ratepayers. The City’s rating requirements takes into account estimated revenue to be received from all sources other than rates (which is less than 2019-2020 amounts by $2.3M).


Page 32


Rating Model

25 The City advertised its Notice of Intention to Levy Differential Rating as per the resolution made at the Ordinary Council meeting on 16 June 2020 (report CC-030-20 Proposed Differential Rating 2020-2021). The resolution requested the Chief Executive Officer to provide Council with rates models incorporating a concession under s.6.47 (Local Government Act 1995) that ensures rates bills for properties not subject to an interim valuation are the same for 2020-2021 as for 2019-2020.

26 The purpose was to further consider the effect of the revaluation upon ratepayers, which always results in some ratepayers paying more and others less, as a result of new GRV property amounts. This was in line with considerations of the impact of COVID-19 upon City ratepayers.

27 The Valuer General independently sets property Gross Rental Valuations (GRV) and the City has traditionally apportioned rating requirements based upon their determination. This is considered to be a fair approach, consistent with intended legislated outcomes and consistent with previous rating models. The City’s rate in the dollar charge has historically been adjusted downwards in line with increasing property GRV’s through the triennial revaluation cycle. Until recently, property GRV’s revaluation adjustments have not been comparative across land uses. This led to the establishment of differential rating under City Rating Strategy 2018-2023.

28 The advertised rates were proposed to achieve a consistent percentage apportionment across differential property categories of City rating requirements. This was to achieve required revenues for forecast 2020-2021 City service provision and planned capital works improvements. Based solely on the independently assessed valuations as traditionally and consistently applied previously, the advertised rates would have resulted in 12,000 properties paying more and 14,000 paying less than their 2019-2020 rating amounts.

29 Further rates modelling as intended, was undertaken to consider the application of section 6.47 rating concessions, to minimise the discrepancy for increased individual property rating in 2020-2021, whilst maintaining the overall required rating apportionments for the City. An alternative rates model to the one advertised was presented to Council, introducing a capped concession of up to $2,000 for those properties who would have paid more in 2020-2021 rates as a result of their GRV revaluation. This has been achieved by adjusting the advertised rate in the dollar higher, which once the discount is applied, effectively reduces the variation to only 102 properties paying more and 10,098 paying less than their 2019-2020 rating amounts.

30 Rates will be apportioned as follows:

Rate Category Rating Apportionment Rating Amount

Residential Improved 52% $35,335,652

Non Residential Improved 45% $31,212,587

Unimproved 3% $2,160,055

Sub Total 100% $68,708,294

Specified Area Rate $358,646

Total $69,066,939

31 Rates under Council’s preferred s.6.47 concessional rating model will be levied as follows:

Rate Category Rate in the Dollar(cents) Minimum Payments

Residential Improved $0.05642288 $852

Non Residential Improved $0.05406655 $852

Unimproved $0.07990013 $852


Page 33


Specified Area Rating

32 The City will maintain the following specified area rate for the 2020-2021 financial year:

Canning Vale Public Open Space Maintenance

33 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

34 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

35 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 2020-2021 financial year. This increases the comparative charge over previous years in recognising all costs associated with the delivery of this service.

36 The Rate in the Dollar $0.00497213 (the basis for the rate is GRV)

Determination of Rate in Dollar:

Formula

Total GRV x Rate in Dollar = Rates Levied on Properties

72,131,234 x 0.00497213 = $358,646 (*rounded)

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

38 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.


Page 34


Adopted

Draft


2019-2020 Canning Vale Specified Area Rate application 2019-2020 2020-2021

$

$ $

(95,731) Unspent/(Overspent) Balance Carried Forward (85,869) (69,518)

358,646 Revenue 358,714 358,646

262,915

272,845 289,128

Less Expenses

Public Open Space & Verge Maintenance

(32,561) - Canning Vale Oval (30,518) (24,874)

(76,450) - Livingston Estate POS (81,918) (75,910)

(69,588) - Waratah Estate POS (65,097) (69,588)

(119,143) - Ranford Estate POS (164,830) (112,783)

(297,742)

(342,363) (283,155)

(34,827) Unspent/(Overspent) Expenditure Balance Carried Forward (69,518) 5,973

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

39 In accordance with Section 6.37 (2)(b) of the Act, if the City was 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.

40 Current plant renewal expenditure requirements have been included within the specified area rate calculation, leading to a higher apportionment. The proposed 2020-2021 service charge will form a new base rate for long term financial planning.

Rates Exemptions

41 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.

42 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.

43 Included as Attachment 1 to this report is a listing of rates concessions/exemptions for 2020-2021, totalling $1,134,382.

CONSIDERATIONS

Legal Compliance

44 On 16 April 2020 State Parliament passed Local Government Amendment (COVID-19 Response) Act 2020. This Act provided a power to enable the Minister for Local Government to modify or suspend provisions of the Local Government Act 1995 and Regulations while a State of Emergency declaration is in force and where the Minister considers that such an order is necessary to deal with the consequences of the COVID-19 pandemic.


Page 35


45 On 7 May 2020, the Minister issued Local Government (COVID-19 Response) Order 2020. Clause 7 sets aside the requirement to prepare the annual budget with regard to the plan for the future, but rather the more pressing and unforeseen consequences of the COVID-19 pandemic. The City’s proposed 2020 - 2021 Annual Budget and in particular this report has been drafted in accordance with the Minister’s order. Clauses 9 and 10 prescribe requirements for 2020-2021 rating.

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

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

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

49 Section 6.47 of the Act allows the waiver of a rate or service charge at the time of adopting the budget, including the implementation of concessions.

Policy Implications


FM.10 Rating Concessions for Community Groups.


Business Plan

51 Business Canning

Financial Reporting:

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

b) To oversee acquittals for external agencies.

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

Internal Budget

52 This report forms part of the 2020-2021 Annual Budget and information is disclosed in the Statement of Rating Information.

Asset Management

53 Not applicable.



55 The COVID-19 pandemic’s effect upon the world and local economy will be long lasting. The City’s non-rating revenues have been reduced, along with changes to existing rates collection practices. Future City income will be different into the immediate future and this will be reflected within preparations for the City’s third Long Term Financial Plan.


Page 36


56 Issuing rates notices electronically as opposed to printing and postage is consistent with the City Policy CM194 Sustainability. A printing and postage charge of $1.65 for instalment notices was introduced in 2019-2020, consistent with user pays principals of City Policy FM.05 Budget Preparation. Eligible pensioners and seniors are exempt from this charge. The City will continue to promote and encourage ratepayers move towards this least cost communication channel and through providing their personal contact information, leads to increased levels of customer service provision.

Consultation

57 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.

58 Council approved at the 16 June 2020 Ordinary Council Meeting, the following differential rates and minimum rates for advertising. The proposed differential rates and minimums were advertised for public comment on 20 June 2020 in the West Australian newspaper, complemented by website and local community newspaper advertising, calling for submissions by the closing date of 13 July 2020.

59 The rates advertised were as follows:

Rate Category Rate in the Dollar (cents) Minimum Payments

Residential $0.05558002 $852

Non-Residential $0.05247501 $852

Unimproved $0.07990013 $852

60 Included as Attachment 2 are the 51 public submissions received. These were considered in accordance with Section 6.36(4) of the Act at the budget workshop held 16 July 2020.

61 The reason for changes to the rate in the dollar charges compared to those advertised, was due to further rates modelling being undertaken for Council’s consideration of the application of section 6.47 rating concessions. The alternate rating model adjusts the advertised rate in the dollar higher and applied a discount, which effectively reduces the variation to only 102 properties paying more and 10,098 paying less than their 2019-2020 rating amounts.

62 This is considered as being consistent with the submission themes received, summarised below:

63

*Some submissions raised more than one consideration as summarised above, or other matters not categorised.

COVID19· B

GRV / Value / Rent B

8

N o lncre·ase

14

Rebate / Reduced

15

Hardsh ip

w


Page 37




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 adopted rating regime for 2020-21 is not consistent with the City’s rating Strategy.

The deviation from the normal system of rating sets a precedent for the application of discounts in future years.

Potential challenges in SAT.

Advertised notice of intention to levy differential rates and sought submissions.

Communicate clearly that this budget is in response to COVID-19 issues.

In community interests and meets community expectation of a rates freeze.

Possible Low Low

(Risk)


The City does not meet compliance with Local Government Act 1995 to adopt the Annual Budget by 31 August 2020.



(Risk)



City service delivery and Capital Program expenditures suspended.



COMMENT

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


Page 38


65 Community and charitable rating concessions and exemptions are recognised as a donation expense, estimated at $1,134,382 in 2020-2021.

66 Benefits for all City of Canning ratepayers will again be provided as vouchers on the 2020-2021 Rates Notices. These are towards encouraging greater utilisation of City owned facilities and services provided, for both residential and non-residential rate payers.

67 The Minister maintains the authority to challenge the City’s approach to rating and the use of concessions, through taking action in SAT or making amendment to the Local Government (Financial Management) Regulations 1996. Based on historical local government occurrence, this may be based on community objection and what is considered not in the community’s or State’s best interest.

68 The proposed approach to rating for 2020-2021 increases the number of properties paying the minimum rate, up from 12,463 to 14,352 (being 37% of total rateable properties). As the City’s minimum rate is low by comparison to other metropolitan local governments, a higher proportion of minimum rated properties indicates low rate in the dollar amounts.

VOTING REQUIREMENT

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


70 Not applicable.


Page 39

CC-050-20 2020-2021 Rates Payment and Incentive Scheme CC-050-20

CC-050-20 2020-2021 Rates Payment and Incentive Scheme



FILE REF: Q20/145


REPORTING OFFICERS: Steve Leeson - Executive Manager Business Canning

Natalie Hett - Leader Revenue





Attachments: Nil.

In Brief:

As part of the 2020-2021 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;

d) the rate payment incentive scheme prizes; and

e) ratepayer benefits scheme;

to be issued with the 2020-2021 Rate Notices.


a) The report recommendations form part of adopting the City’s 2020-2021 Annual Budget; and

b) The proposed charges on rating for 2020-2021 include a number of community and ratepayer support measures in response to COVID-19.

If the Officer Recommendation is not supported:

a) The City’s proposed 2020-2021 Annual Budget will not be consistent with proposed rate payment and incentive scheme; and

b) Should the City’s 2020-2021 Annual Budget not be adopted before 31 August 2020, Ministerial approval will be required in accordance with the Local Government Act 1995.


Page 40



MOVED Deputy Mayor Jacobs, SECONDED Cr Holland, that Council:

1. Pursuant to Section 6.45 of the Local Government Act 1995, adopts an instalment interest rate of 0% (GST free), and sets due dates for the payment of rates as follows:

a) Upfront and in full 25 September 2020

b) 1st Instalment 20 November 2020

c) 2nd Instalment 15 January 2021

d) 3rd Instalment 19 March 2021

e) 4th Instalment 21 May 2021.

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 0% rate of penalty interest on overdue rates and service charges that remain unpaid (including alternate arrangements).

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 for upfront and in full payment of rates, being the chance to win one of ten shopping centre vouchers, the dates and details 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 2020-2021 Rates Notice.


*The Mayor advised of a small change to the first sentence in paragraph 24 of report. The date of 11 September 2020 should be 25 September 2020, and the amount $1,000 should be $1,100. With this change the sentence reads: “All City of Canning ratepayers who have paid their rates upfront and in full by 25 September 2020, including all arrears, will go into the draw to win one of ten shopping centre vouchers of $1,100 purchased by the City…”.



OCM 16 June 2020 NOM-005-20 Suspension of Interest Charges and Penalties for Ratepayers

1. Suspends all interest applicable to ratepayers who opt to pay their rates on the instalment scheme for the financial year 2020-2021. 2. Suspends all penalties for late payment of rates for the financial year 2020-2021.


1. Adopts the proposed policy FM.13 Financial Hardship – Collection of Property Rates, Fees and Charges as contained in Attachment 1 to allow for the cessation of penalty interest, a


Page 41




pause on payments for up to six months and the establishment of alternate payment arrangements. 2. Requests the Chief Executive Officer to prepare a draft 2020-2021 Budget to include the following: a) No increase to residential or non-residential rates; b) No increase in the waste service fee, transfer station fees, or the security charge; c) Deferral of any new underground power charges for 12 months; d) Waiving of inspection fees for food businesses; e) Rental abatements granted with regard to rent for City owned premises; f) Delay of the first rates instalment due date to November 2020. g) Extended payment terms and concessions on interest charges in accordance with the Financial Hardship Policy FM.13; h) Maintaining creditor terms of under 14 days for all small and medium businesses; i) Appropriate allocation of funds for the Connect in Canning project to support community led initiatives and the connection of vulnerable people to identified community supports; j) The bringing forward of capital projects that stimulate the local economy, create jobs and keep people in work; and k) Other initiatives to stimulate local business and assist in the recovery process developed in consultation with local businesses and the community. 3. Requests the Chief Executive Officer to undertake a review of the waste collection service with regard to the changing needs of the community, given the impacts of the COVID-19 pandemic and report back to the May Ordinary Council Meeting. 4. Requests the Chief Executive Officer to undertake further modelling and report back as part


Page 42




of the draft budget process, on the impacts and potential outcomes of the following: a) A part rate reduction within the 2020 – 2021 Annual Budget; b) The complete removal or reduction of instalment interest for the 2020 – 2021 financial year; and c) The introduction of a rate rebate voucher to be spent with local City of Canning businesses. 5. Approves the redirection of $80,000 from remaining grant funds for 2019 - 2020 to establish the Canning Resilience Grants and that these grants be made available to not-for-profit organisations, unincorporated groups, and small businesses operating within the City of Canning. 6. Authorises the Mayor and Chief Executive Officer to write to the Minister for the Environment, the Hon Stephen Dawson MLC, requesting that the State Government: a) make emergency funding available in the upcoming 2020/2021 State Government Budget to assist Local Governments respond to the immediate challenges in the recycling industry, especially within the COVID-19 environment. b) commit to reinvest 100% of the revenue accrued through the Landfill Levy into waste avoidance, management and recycling programs as per the Levy’s original objective.


CC-039-19

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.


Page 43




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.

**ABSOLUTE MAJORITY REQUIRED**

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 offered an upfront and in full payment option as well as a four quarterly instalment payment options. In 2017-2018 the previous $15 administration charge for the payment by instalment option was replaced with an instalment interest charge of 3.25%, an equivalent interest charge of $15 for the average residential ratepayer paying by instalments.

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. The following conditions apply to all Prizes:

a) All outstanding previous years rates must be received on or before Friday, 11 September 2020.

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


Page 44


c) Other terms and conditions as specified are met.

5 In previous years, the Rate Payment Incentive Scheme has specifically encouraged Ratepayers to receive their rates notices electronically and to make their payments through direct non-cash banking arrangements, as the least cost method for the City. This supports City policy CM194 Sustainability and FM05 Budget Preparation – user pay principals.

6 Contracted support from the City’s banking services provider towards the Rate Payment Incentive Scheme expired as at 30 June 2020. No significant financial support has been forthcoming for 2020-2021.

7 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.


DETALS

Rate Payment Dates

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 to separate the up front and in full payment due date and deferring the due dates for the instalment options as follows:

Upfront and in full 25 September 2020

1st Instalment 20 November 2020

2nd Instalment 15 January 2021

3rd Instalment 19 March 2021

4th Instalment 21 May 2021.

12 Deferring quarterly instalment dates would ordinarily have an adverse effect upon the City’s operational cash flow, as property rates, fees and charges revenue would be received later in the year. Should the amount of ratepayers who pay upfront and in full remain consistent with previous years, this would not forecast a negative municipal cash flow. Although the amount of upfront and in full payments is expected to decrease significantly due to changes in interest charges, the impact of which is considered later in this report.

Rate Payment Charges

13 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.


Page 45


14 Local Government Financial Management Regulation 70 states that the maximum rate of interest on overdue property rates, fees and charges to be imposed under Section 6.51 of the Act is 11%. The Minister’s Local Government (COVID-19 Response) Order 2020 capped this amount to 8% for 2020-2021. The City has previously imposed a rate of penalty interest of 10%. In response to COVID-19 and consistent with Council decisions NOM-005-20 Suspension of Interest Charges and Penalties for Ratepayers and CC-015-20 Community and Business Support - Phase 1 Response, no penalty interest is proposed for 2020-2021.

15 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.

16 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%. The Minister’s Local Government (COVID-19 Response) Order 2020 capped this amount to 3% for 2020-2021. In recognition of the increased administrative burden in managing multiple instalments, the City previously imposed a rate of instalment interest of 3.25%, applicable where ratepayers elect to pay by the prescribed instalment due dates. Eligible pensioners and seniors were exempt from this charge. In response to COVID-19 and consistent with Council decisions NOM-005-20 Suspension of Interest Charges and Penalties for Ratepayers and CC-015-20 Community and Business Support - Phase 1 Response, no instalment interest is proposed for 2020-2021.

17 Foregone revenue through not charging interest in 2020-2021 forfeits $340,000 in instalment interest and $250,000 in penalty interest.

18 The removal of interest charges on instalments is forecast to have an adverse effect upon the City’s operational cash flow, as the percentage of upfront rate payment receipts is expected to reduce. Combined with the effect of deferring quarterly rates instalment dates, initial estimates considered at the budget workshop of 23 June were multiple months until September 2021 of deficit in municipal cash, peaking at $12.63M in December 2020. This number has since been revised, taking into account the associated effect upon the delayed waste fee income, the peak deficit in municipal cash is now forecast at almost $15M. *Based on assumptions made at the time.

Paper Instalment Charge

19 Consistent with the City’s Rating Strategy 2018-2023, a paper instalment charge was implemented in 2019-2020 as cost recovery for paper, printing and postage. Avoiding the use of paper and postage, aligns with the City’s Sustainability Policy CM194. Digital rates notices were established for the 2016-2017 rating year. Ratepayers may elect to have their rates notice emailed or received through online banking (via BPay View). Several campaigns and advertising promotions have encouraged the switch to digital rate notices. The take up is currently at 25% with 7,692 on eRates (up from 5,247 last year) and 2,419 on Bpay View (up from 1,531) of 39,198 ratepayers. This is despite the majority of ratepayers paying via online banking.

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

21 It is recommended the City continues with this cost recovery fee for paper, printing and postage. The fee would continue to 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.

22 The proposed fee remains at $1.65 inclusive of GST.

Rate Payment Incentive Scheme

23 The terms and conditions for the proposed 2020-2021 Rate Payment Incentive Scheme prizes are designed in an effort to encourage City ratepayers who can afford to, pay upfront and in full by the due date. This will support the City’s 2020-2021 cash flow.


Page 46


24 All City of Canning ratepayers who have paid their rates upfront and in full by *25 September 2020, including all arrears, will go into the draw to win one of ten shopping centre vouchers of *$1,100 purchased by the City. City staff are currently working with three local shopping centres to contribute further towards increasing the vouchers value, in exchange for recognizing the shopping center’s support on the City’s 2020-2021 rate notice. All prizes will be drawn within two weeks after the upfront and in full due date of 25 September 2020.

25 The Western Australian Symphony Orchestra (WASO) has donated two double passes to an upcoming concert. These prizes will be made available to be won by ratepayers who pay their first quarterly rates instalment amount in full, including any arrears by the due date of 20 November 2020.

The sponsor’s support is gratefully acknowledged.

Ratepayer Benefit Scheme

26 The City will continue to provide benefits to all ratepayers in 2020-2021 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.

27 The proposed ratepayer vouchers for 2020-2021 are:

One 10 day Leisureplex Plus pass per notice.

One Complimentary Group Pass to either Leisureplex.

Two x nine holes round of golf at Whaleback Golf Course value $ 50 (To be redeemed together).

Two Free Buckets of golf balls each at Whaleback Golf Course value $22.

28 Whaleback redemptions are available Monday to Friday 10.30am till 2.30pm and redeemable at the same time. They are not available weekends and public holidays and are valid until 17 December 2020.

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

30

Riverton Letsureplex

. ,!!. •

" . lCannington • l etsurep ex


Page 47


Rate Notice Package

31 To encourage greater understanding and awareness of City services and initiatives, the 2020-2021 rate notice package will include information towards:

a) Message from the Mayor.

b) Ratepayer benefit scheme details with QR code on the back of the notice.

c) City Libraries Services and Initiatives.

d) Waste Services and Initiatives.

e) Cannington and Riverton Leisureplexes.

f) Get Active App.

g) Whaleback Golf Course.

h) General Rating information.

i) City Contacts.

CONSIDERATIONS

Legal Compliance

32 On 16 April 2020, State Parliament passed Local Government Amendment (COVID-19 Response) Act 2020. This Act provided a power to enable the Minister for Local Government to modify or suspend provisions of the Local Government Act 1995 and Regulations while a State of Emergency declaration is in force and where the Minister considers that such an order is necessary to deal with the consequences of the COVID-19 Pandemic.

33 On 7 May 2020, the Minister issued the Local Government (COVID-19 Response) Order 2020. Clause 7 sets aside the requirement to prepare the annual budget with regard to the plan for the future, to address the more pressing and unforeseen consequences of the COVID-19 pandemic. The City’s proposed 2020 - 2021 Annual Budget and in particular this report has been drafted in accordance with clause 8, 13 and 14 of the Minister’s order.

34 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.

2. 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%. Clause 8 of the Local Government (COVID-19 Response) Order 2020 caps the interest rate in 2020-2021 at 8%.

3. 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).

35 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.


Page 48


36 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.

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

38 Regulation 68 of the Local Government (Financial Management) Regulations 1996 prescribes the maximum amount of penalty interest which may be imposed as 5.5%. The Minister’s Local Government (COVID-19 Response) Order 2020 capped this amount to 3% for 2020-2021.

39 Regulation 70 of the Regulations prescribes the maximum amount of penalty interest which may be imposed as 11%. The Minister’s Local Government (COVID-19 Response) Order 2020 capped this amount to 8% for 2020-2021.

Policy Implications


CM194 Sustainability.

Rating Strategy 2018-2023.


Business Plan

41 Business Canning

Finance and Asset Management




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

Internal Budget

42 This report forms part of the 2020-2021 Annual Budget and information is disclosed in the Statement of Rating Information.

Asset Management

43 Not applicable.




Page 49


45 The COVID-19 pandemic’s effect upon the world and local economy will be long lasting. The City’s non-rating revenues have been reduced, along with changes to existing rates collection practices. Future City income will be different into the immediate future, this will be reflected within preparations for the City’s third Long Term Financial Plan.

46 Issuing rates notices electronically as opposed to printing and postage is consistent with the City Policy CM194 Sustainability. A printing and postage charge of $1.65 for instalment notices was introduced in 2019-2020, consistent with user pays principals of City Policy FM.05 Budget Preparation. Eligible pensioners and seniors are exempt from this charge. The City will continue to promote and encourage ratepayers move towards this least cost communication channel and through providing their personal contact information, leads to increased levels of customer service provision.

Consultation



Risk/ Opportunity Consequences Mitigation/ Actions Consequence

Likelihood X

Consequence Rating




Annual rating of City properties with set payment due dates.

Service delivery and capital program expenditures continue.



(Opportunity)


Likely cash deficit projected to peak at approximately $15 million during the financial year.

Establishment of short term liquidity facility with WATC.

Likely Significant

High (Risk)





(Risk)






Page 50


COMMENT

48 As at 30 June 2020, 97% of all 2019-2020 property rates, fees and charges have been received with only $3.823M remaining out of a total $107.051M in total charges raised.

49 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 paid their annual rates in full by the due date, or incurred interest charges commiserate with the interest earnings foregone by the City. Removing the instalment interest charge completely was not the City’s preferred option, as opposed to reducing the rate, due to the adverse effect this is forecast to have upon City cash flow.

50 To assist in the recovery of outstanding rates, alternative payment arrangements have always been available to ratepayers upon request. Payment terms that do not exceed two years for both arrears and impending rates amounts by monthly, fortnightly or weekly 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.

51 An online application process for City policy FM.13 Financial Hardship is in place. As at 15 June 2020, two applications have been received. It is not anticipated for many further applications to be received until nearer to the due date for the first instalment in November 2020.

VOTING REQUIREMENT

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


53 Not applicable.


Page 51

CC-051-20 2020-2021 Annual Budget CC-051-20

CC-051-20 2020-2021 Annual Budget



FILE REF: Q20/146


REPORTING OFFICER: Steve Leeson - Executive Manager Business Canning





Attachments: 1. Draft Annual Budget 2020-2021 (D20/96684). (Large Attachments)

2. Local Government (COVID-19 Response) Order (D20/75284). 3. 18 Month Cashflow Forecast (D20/96565). 4. Annual Budget 2020-2021 Summary Presentation (D20/96591).

In Brief:

The purpose of this report is for Council to consider and adopt the City of Canning’s 2020-2021 Annual Budget, following the preceding reports.

Council and City Officers have conducted 5 workshops since January 2020, in order to develop a budget that addresses the immediate needs of the Canning ratepayers and community. The result is a budget set in response to the COVID-19 pandemic and the consequences this has created for our local community and businesses. The City’s plan for the future (Long Term Financial Plan) has necessarily been set aside for the 2020-2021 financial year, consistent with Ministerial Order prescribing requirements for local government budget preparations.

Council is asked to support the Officer Recommendation because: a) The report recommendations forms part of adopting the City’s 2020-2021 Annual Budget;

and b) The proposed 2020-2021 Annual Budget includes a number of community and ratepayer

support measures in response to COVID-19.

If the Officer Recommendation is not supported: a) The City’s proposed 2020-2021 Rates Notice cannot be issued at this time; b) The City’s proposed 2020-2021 Annual Budget will not be consistent with proposed rating;

and c) Should the City’s 2020-2021 Annual Budget not be adopted before 31 August 2020,

Ministerial approval will be required in accordance with the Local Government Act 1995.


Page 52



MOVED Cr Ponnuthurai, SECONDED Cr Kunze, that Council:

1. Resolves that consistent with previous years and pursuant to Sections 5.98, 5.98A and 5.99 of the Local Government Act 1995, 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 2021, 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) Management Budgets for 2020-2021.

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

k) Schedule of Fees and Charges for 2020-2021.

4. Adopts a material variance for reporting of 10% or $50,000 (whichever is the greater), for the year ending 30 June 2021.

5. Endorses the 18 month cash flow forecast as contained in Attachment 3 .

6. 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, as well as the establishment of short term lending facility(s) with the Western Australian Treasury Corporation and or the Commonwealth Bank of Australia as the City’s contracted banking services provider, to meet City cash flow requirements, and give instructions on behalf of the City of Canning, pursuant to section 9.49A(4) of the Local Government Act 1995.



Page 53




OCM 16 June 2020 NOM-005-20 Suspension of Interest Charges and Penalties for Ratepayers

1. Suspends all interest applicable to ratepayers who opt to pay their rates on the instalment scheme for the financial year 2020-2021. 2. Suspends all penalties for late payment of rates for the financial year 2020-2021.


1. Adopts the proposed policy FM.13 Financial Hardship – Collection of Property Rates, Fees and Charges as contained in Attachment 1 to allow for the cessation of penalty interest, a pause on payments for up to six months and the establishment of alternate payment arrangements. 2. Requests the Chief Executive Officer to prepare a draft 2020-2021 Budget to include the following: a) No increase to residential or non-residential rates; b) No increase in the waste service fee, transfer station fees, or the security charge; c) Deferral of any new underground power charges for 12 months; d) Waiving of inspection fees for food businesses; e) Rental abatements granted with regard to rent for City owned premises; f) Delay of the first rates instalment due date to November 2020. g) Extended payment terms and concessions on interest charges in accordance with the Financial Hardship Policy FM.13; h) Maintaining creditor terms of under 14 days for all small and medium businesses; i) Appropriate allocation of funds for the Connect in Canning project to support community led initiatives and the connection of vulnerable people to identified community supports; j) The bringing forward of capital projects that stimulate the local economy, create jobs and keep people in work; and


Page 54




k) Other initiatives to stimulate local business and assist in the recovery process developed in consultation with local businesses and the community. 3. Requests the Chief Executive Officer to undertake a review of the waste collection service with regard to the changing needs of the community, given the impacts of the COVID-19 pandemic and report back to the May Ordinary Council Meeting. 4. Requests the Chief Executive Officer to undertake further modelling and report back as part of the draft budget process, on the impacts and potential outcomes of the following: a) A part rate reduction within the 2020 – 2021 Annual Budget; b) The complete removal or reduction of instalment interest for the 2020 – 2021 financial year; and c) The introduction of a rate rebate voucher to be spent with local City of Canning businesses. 5. Approves the redirection of $80,000 from remaining grant funds for 2019 - 2020 to establish the Canning Resilience Grants and that these grants be made available to not-for-profit organisations, unincorporated groups, and small businesses operating within the City of Canning. 6. Authorises the Mayor and Chief Executive Officer to write to the Minister for the Environment, the Hon Stephen Dawson MLC, requesting that the State Government: a) make emergency funding available in the upcoming 2020/2021 State Government Budget to assist Local Governments respond to the immediate challenges in the recycling industry, especially within the COVID-19 environment. b) commit to reinvest 100% of the revenue accrued through the Landfill Levy into waste avoidance, management and recycling


Page 55




programs as per the Levy’s original objective.


CC-040-19

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


Page 56




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.

BACKGROUND

1 Traditionally, the City of Canning’s (‘the City’) Annual Budget (‘Budget’) is prepared within the parameters of the City’s Integrated Planning and Reporting (‘IPR’) Framework which plans for the future of the district as required under the Local Government Act 1995. City policy FM.05 Budget Preparation along with the City’s Long Term Financial Plan (‘LTFP’) 2017-2027, both guide future budget preparations.

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.

3 Preparing the Annual Budget is a collaborative process between Council and City Officers. The proposed budget has been arrived at through five budget workshops, at which topics discussed informed the strategic objectives and outcomes sought to be included within budget documents.


5 The COVID-19 pandemic has and will continue to impact upon the economic situation of the City’s residents and local businesses. Council’s Elected Members and administration have expressed a shared concern for the community, supported through freezing, waiving and removing a number of 2020-2021 Fees and Charges.

6 The Budget is consistent with the previous 2018-2019 and 2019-2020 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. The brought forward 2019-2020 budget position was forecast to be a deficit of $(1,079,508).

7 Within the proposed Budget, all revenues and expenditures, including capital works, external grants, debt funding and the application of reserves, would result in a deficit budget forecast for the 2020-2021 financial year of $(711,228). Budget deficits are to be made up through subsequent financial years or the use of reserve funds.

8 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.

9 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.


Page 57


DETAILS

10 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 2021 (by Program).

b) Budget Statement of Comprehensive Income for the year ending 30 June 2021 (by Nature or Type).

c) Statement of Surplus or Deficit for the year ending 30 June 2021.

d) Budget Statement of Financial Activity for the year ending 30 June 2021.

e) Budget Rate Setting Statement for the year ending 30 June 2021.

f) Budget Cash flow Statement for the year ending 30 June 2021.

g) Statement of Rating Information for the year ending 30 June 2021.

h) Notes to the Annual Budget for the year ending 30 June 2021.

i) Sub-program Budgets by Business Unit for 2020-2021.

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

k) Schedule of Fees and Charges for 2020-2021.

11 A Statement of Financial Activity, being a 12 month Annual Budget, has been prepared for the 2020-2021 financial year for the purposes of reporting on the sources and applications of funds.

12 The percentage for reporting material variances in the monthly Statement of Financial Activity is recommended to be set at 10% or $50,000 whichever is greater as per previous years.

13 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.

14 As part of the Budget, the City’s reserve funds and the 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.

15 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.


Page 58


m) Plant Replacement Reserve.

n) Community and Sporting Facility Reserve.

o) HVAC Reserve.

p) Legislative Expenses Reserve.

q) Town Planning Scheme Reserve. No new reserves are proposed to be established in 2020-2021.

16 On 16 April 2020 State Parliament passed Local Government Amendment (COVID-19 Response) Act 2020. This Act provided a power to enable the Minister for Local Government to modify or suspend provisions of the Local Government Act 1995 and Regulations while a State of Emergency declaration is in force and where the Minister considers that such an order is necessary to deal with the consequences of the COVID-19 Pandemic. This is included as Attachment 2.

17 The budget shows overall end of year deficit forecast of $(711,228). Due to the timing of cash inflows and outflows during the financial year the City’s cash position can vary throughout the year, managed carefully with prudent cash flow management practices. During 2020-2021 financial year as described with report Rates Payment and Incentive Scheme, there will be cash flow shortages due to the changes in rating and collection practices in response of the COVID-19 pandemic. In particular, there is increased risk of deferred payment of rates and fees and charges as well as payment defaults.

18 Cash flow risk has been discussed with the Council in preparation of 2020-2021 Annual Budget. Recognising the risk, it has been proposed to establish a short term lending facility to cover short falls in cash flow. It is proposed to take advantage of the recently announced low cost overdraft like short term facility by the State Government through Western Australian Treasury Corporation (WATC). One of the requirements to access this facility with WATC is a cash flow forecast. Attachment 3 is the City’s 18 month cash flow forecast. The assumptions used forecast the City will encounter a likely maximum cash shortfall of up to $15 million in December 2020. The higher amount of cash flow shortfall is mainly attributable to the assumption of delay in receiving rates income, as it is expected that more ratepayers would opt for the deferred quarterly instalment payment option in view of not being charged instalment interest and penalty interest.

19 There is no cost associated with establishment of this facility with the WATC. The interest cost will only be payable to the extent facility is drawn upon during the year. There is no certainty the WATC will approve the City’s application for the facility for the required amount. Therefore the City may be required to establish a short term lending facility with the City’s banking services provider the Commonwealth Bank of Australia.

CONSIDERATIONS

Legal Compliance

20 On 16 April 2020 State Parliament passed Local Government Amendment (COVID-19 Response) Act 2020. This Act provided a power to enable the Minister for Local Government to modify or suspend provisions of the Local Government Act 1995 and Regulations while a State of Emergency declaration is in force and where the Minister considers that such an order is necessary to deal with the consequences of the COVID-19 Pandemic. This is included as Attachment 2.

21 On 7 May 2020 the Minister issued Local Government (COVID-19 Response) Order 2020. Clause 7 sets aside the requirement to prepare the annual budget with regard to the plan for the future, to address the more pressing and unforeseen consequences of the COVID-19 pandemic. The City’s proposed 2020 – 2021 Annual Budget and in particular this report has been drafted in accordance with all relevant clauses.

22 Section 5.56 of the Act requires a local government to plan for the future of the district.


Page 59


23 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.

24 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.

25 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.

26 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

27 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.

28 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


FM.06 Budget Variations.

FM.10 Rating Concessions for Community Groups.

CM102.1 Members – Meeting Attendance and Other Allowances.


Business Plan

30 Business Canning




c) To prepare the City’s accounts for audit

Internal Budget

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

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

33 2019-2020 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 2019-2020 final year end surplus or deficit position.


Page 60


34 From 1 May 2018, the City implemented a new enterprise system and chart of accounts for its financial reporting. The new chart and use of the system have been further refined during 2019-2020 and towards draft budget 2020-2021 preparations. This may affect some comparative amounts for the proposed 2020-2021 Annual Budget against the adopted 2019-2020 adopted budget and actual amounts, though are not considered material.

Asset Management

35 Not applicable.



37 The COVID-19 pandemic’s effect upon the world and local economy will be long lasting. The City’s non-rating revenues have been reduced, along with changes to existing rates collection practices. Future City income will be different into the immediate future. This will be reflected within preparations for the City’s third long term financial plan.

Consultation


39 At the 16 June 2020 Ordinary Council Meeting, Council approved proposed differential rates and minimum rates for advertising. The proposed differential rates and minimums were advertised for public comment on 20 June 2020 and 51 submissions were received by the closing date of 13 July 2020.



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 FM.05 Budget


(Risk)


Page 61



Actions Consequence

Likelihood X

Consequence Rating


Preparation through five Council workshops.



City service delivery and Capital Program expenditures suspended.

The draft Budget was prepared within the City’s IPR framework and policy FM.05 Budget Preparation through five Council workshops.


COMMENT

40 Whilst by Ministerial Order and specific Council intent, the 2020-2021 Annual Budget is not consistent with the City’s plan for the future. The COVID-19 pandemic will necessitate a new approach and resetting of major strategic documents within the City’s Integrated Planning and Reporting Framework. This will be most noticeable within the City’s Long Term Financial Plan and draft preparations of the third version will commence post annual budget adoption.

41 The 2020-2021 Annual Budget includes $14M in brought forward capital works projects, to provide local economic stimulus. The funding model for the brought forward capital works includes the use of $2M in reserve funds, loans of $12M which will be repaid over five years by reduced spend of recurrent forward capital works (approximately $1.7M per year for five years), along with an increase in rates commencing 2021-2022 of 0.92%, over the proposed 2020-2021 rating.

42 The 2020-2021 Annual Budget has been drafted to include the annual New Year’s Day fireworks event. The event’s budgeted cost of $170,000 has been added to the Annual Budget deficit amount previously considered through budget workshops. Given the uncertainty and potential risks associated with proceeding with this event, it will be the subject of a separate report to Council at the August Ordinary Council Meeting. Should Council decide not to proceed with the event, the City’s Annual Budget deficit for 2020-2021 will be reduced to $541,228 at the next budget review.

43 A summary presentation of the proposed City Annual Budget 2020-2021 is included as Attachment 4.

VOTING REQUIREMENT

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


45 Not applicable.


Page 62

7. CONFIDENTIAL REPORTS

In accordance with section 4.16 of the Standing Orders, the Chief Executive Officer is of the opinion that the report listed below is of a confidential nature. This report has been kept confidential until Council has the opportunity to resolve that all relevant documents should remain confidential and be dealt with behind closed doors.

COUNCIL DECISION

MOVED Cr Barry, SECONDED Cr Bain, that Council resolves, in accordance with section 5.23(2) of the Local Government Act 1995 and/or section 4.15(2) of the Standing Orders, that the following report is confidential, for the reasons as shown.

CC-035-20 Intermodal Freight and Logistics Opportunities for the City of Canning

This report contains information of a confidential nature in accordance with Section 5.23(2(e)(ii) of the Local Government Act 1995, as it contains information relating to a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government

and that the Council deal with the item behind closed doors.

CARRIED UNANIMOUSLY 10/0

6.42pm The Mayor thanked members of the public for their attendance and asked that they please leave the Council Chambers in order for the Confidential Matter to be considered. The doors were then closed to the public.


Page 63

7.1 Director Canning Community and Commercial

CC-035-20 Intermodal Freight and Logisitics Opportunities for the City of Canning


SUB PROGRAM: Canning Community and Commercial

FILE REF: Q20/266


REPORTING OFFICERS: Sarah McQuade - Executive Manager Enriching Canning

Joy Mickleson - Leader Business Development

Boris Wong - Business Development Officer


Strategic Plan Theme: PROSPER - A thriving local economy. Community Goal: Increased local employment and small businesses. Council Strategy: A business-friendly environment that encourages businesses to

prosper.

Authority/Discretion: Executive: The substantial direction setting and oversight role of the Council eg adopting plans and reports, accepting tenders, directing operations, setting and amending budgets.

Attachments: Nil.

*** CONFIDENTIAL TO MEMBERS ONLY ***

The Chief Executive Officer is of the opinion that this report contains information of a confidential nature in accordance with Section 5.23(2)(e)(ii) of the Local Government Act 1995, as it contains information relating to a matter that if disclosed, would reveal information that has a commercial value to a person, where the information is held by, or is about, a person other than the local government. In accordance with section 4.16 of the Standing Orders this report will be kept confidential until Council has the opportunity to resolve that this document should remain confidential and be dealt with behind Closed Doors.


Page 64


ORDINARY COUNCIL MEETING 21 JULY 2020

MOVED Cr Ponnuthurai, SECONDED Cr Porter, that Council adopts the recommendation as outlined in paragraph 41 of this report.

Cr Spencer-Teo moved a Procedural Motion to adjourn the matter to a Special Council Meeting on 30 July 2020, as she had concerns about information relating to the report, including the costs estimated for a feasibility study, and the portion of land associated with this matter. The adjournment would enable Councillors to receive further clarification on these issues.

PROCEDURAL MOTION

MOVED Cr Spencer-Teo, SECONDED Cr Bain, that item CC-035-20 be adjourned to the Special Council Meeting of 30 July 2020, pursuant to clause 10.1(a) of the City of Canning Standing Orders Local Law 2015.

CARRIED 6/5

SPECIAL COUNCIL MEETING 30 JULY 2020

CC-035-20 COUNCIL DECISION – MOTION AS ADJOURNED

MOVED Cr Ponnuthurai, SECONDED Cr Porter, that Council adopts the recommendation as outlined in paragraph 41 of this report.

CARRIED 8/2 For: Mayor Hall, Deputy Mayor Jacobs, Crs Bain, Holland,

Ponnuthurai, Porter, Spencer-Teo Against: Crs Barry, Sweeney

MOVED Cr Spencer-Teo, SECONDED Cr Porter, that the meeting be reopened to the public.

CARRIED UNANIMOUSLY 10/0 6.59pm The meeting was reopened to the public. No members of the public returned.

The Mayor read aloud the Council Decision for Item CC-035-20 Intermodal Freight and Logistics Opportunities for the City of Canning.

8. CLOSURE

There being no further business, the Mayor declared the Meeting closed at 7.00pm.

I certify that these Minutes were confirmed at the Ordinary Council Meeting held on 18 August 2020 as a true and correct record of proceedings.

Presiding Member: Mayor Patrick Hall

Date:

city of canning...2020/07/30 · waiving of inspection fees for food businesses, rental abatements...

Documents