minutes · minutes for the . ordinary meeting . of council. held on . wednesday 15 april 2020 ....

MINUTES FOR THE

ORDINARY MEETING OF COUNCIL

HELD ON

WEDNESDAY 15 APRIL 2020

PLEASE READ THE FOLLOWING DISCLAIMER BEFORE PROCEEDING

Members of the public are cautioned against taking any action on Council decisions, on items in these Minutes in which they may have an interest, until such times as they have been advised in

writing by Shire staff

Shire of Coorow Minutes - Ordinary Meeting 15 April 2020

Minutes

1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS: .............................................. 3

2. RECORD OF ATTENDANCE / APOLOGIES / LEAVE OF ABSENCE PREVIOUSLYAPPROVED ............................................................................................................................................... 3

3. REPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE: ...................................... 3

4. PUBLIC QUESTION TIME: ..................................................................................................................... 3

5. APPICATION FOR LEAVE OF ABSENCE: ......................................................................................... 4

6. DECLARATION OF INTEREST: ............................................................................................................ 4

7. PETITIONS/DEPUTATIONS/PRESENTATIONS: ............................................................................... 4

8. CONFIRMATION OF MINUTES ............................................................................................................. 5 8.1 AUDIT COMMITTEE MEETING HELD WEDNESDAY 17 APRIL 2019 HELD AT GREEN HEAD

COMMUNITY HALL ....................................................................................................................... 5 8.2 AUDIT COMMITTEE MEETING HELD WEDNESDAY 18 MARCH 2020 HELD AT COOROW

DISTRICT HALL ............................................................................................................................ 5 8.3 ORDINARY MEETING HELD WEDNESDAY 18 MARCH 2020 HELD AT COOROW DISTRICT

HALL .............................................................................................................................................. 5

9. ANNOUNCEMENTS BY THE PERSON PRESIDING WITHOUT DISCUSSION: .......................... 6

10. MATTER FOR WHICH MEETING MAY BE CLOSED; ...................................................................... 6

11. REPORTS: ................................................................................................................................................. 7

11.1 ACTING CHIEF EXECUTIVE OFFICER: .............................................................................................. 7 11.1.1 DROUGHT COMMUNITY GRANT EXTENSION .......................................................................... 7

11.2 MANAGER OF WORKS AND SERVICES: ........................................................................................ 10

11.3 DEPUTY CHIEF EXECUTIVE OFFICER: .......................................................................................... 11 11.3.1 LIST OF ACCOUNTS PAID FOR THE MONTH OF MARCH 2020 ............................................. 11 11.3.2 MONTHLY STATEMENT OF FINANCIAL ACTIVITY – MARCH 2020 ....................................... 13 11.3.3 PROPOSED DIFFERENTIAL RATES FOR 2020/2021 .............................................................. 25 11.3.4 ST JOHN AMBULANCE SHED DOOR ....................................................................................... 39

12. QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN: ............................. 40

13. URGENT BUSINESS APPROVED BY THE PERSON PRESIDING OR BY DECISION: .......... 40

14. MATTERS BEHIND CLOSED DOORS: .............................................................................................. 41 14.1. MANAGER WORKS & SERVICES CONTRACT OF EMPLOYMENT ......................................... 42

15. DATE OF NEXT MEETING: .................................................................................................................. 43 15.1 ORDINARY MEETING OF COUNCIL.......................................................................................... 43

16. CLOSURE: ............................................................................................................................................... 43


1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS:

The President, Cr Moira J Girando, welcomed those present and opened theMeeting at 5.00 pm.

The Shire of Coorow acknowledges the Aboriginal peoples of Western Australiaas the traditional custodians of this land, and we pay our respects to their Elderspast and present.

2. RECORD OF ATTENDANCE / APOLOGIES / LEAVE OFABSENCE PREVIOUSLY APPROVED

Councillor M J Girando PresidentCouncillor B A Jack Deputy PresidentCouncillor G V HealesCouncillor V J MullerCouncillor V R OakesCouncillor S D Peck

Mr J Merrick Acting Chief Executive Officer Mrs L J Parola Deputy Chief Executive Officer Mr K Bean Manager of Works & Services Ms E Budrikis (5.06 pm to 5.15pm) Community & Economic Development Officer

Apologies Councillor M R Bothe Councillor R R Kau

3. REPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ONNOTICE:

Nil

4. PUBLIC QUESTION TIME:

Nil


5. APPICATION FOR LEAVE OF ABSENCE:

Nil

6. DECLARATION OF INTEREST:

Councillor Heales declared an Impartiality Interest in 11.1.1 Drought CommunityGrant Extension as he is President of the Green Head Sporting Club

Councillor Muller declared an Impartiality Interest in 11.1.1 Drought CommunityGrant Extension as his wife is the President of the Coorow Heritage Group

7. PETITIONS/DEPUTATIONS/PRESENTATIONS:

Nil

PROCEDURAL MOTION

The President, Cr Moira J Girando, suggested that all items except Items 11.1.1and 14.1 be considered ‘en bloc’.

RESOLUTION: 2020/026

Moved: Cr Peck Seconded: Cr Jack

That the recommendations for all items except 11.1.1 and 14.1 be adopted by a ‘en bloc’ resolution

The following items adopted by ‘en bloc’ resolution:

8.1 Audit Committee - Minutes 17 April 2020 8.2 Audit Committee - Minutes 18 March 2020 8.3 Ordinary Meeting – Minutes 18 March 2020 11.3.1 List of Accounts 11.3.2 Monthly Statement of Financial Activity 11.3.3 Proposed Differential Rates for 2020/2021 11.3.4 St Johns Ambulance Shed door

CARRIED 6/0 Absolute Majority


8. CONFIRMATION OF MINUTES

8.1 AUDIT COMMITTEE MEETING HELD WEDNESDAY 17 APRIL 2019 HELD AT GREEN HEAD COMMUNITY HALL

8.2 AUDIT COMMITTEE MEETING HELD WEDNESDAY 18 MARCH 2020 HELD AT COOROW DISTRICT HALL

8.3 ORDINARY MEETING HELD WEDNESDAY 18 MARCH 2020 HELD AT COOROW DISTRICT HALL



That the Minutes of the Audit Committee Meeting held on Wednesday 17 April 2019 be received.

CARRIED 6/0 Simple Majority



That the Minutes of the Audit Committee Meeting held on Wednesday 18 March 2020 be received.


RESOLUTION: 2020/


That the Minutes of the Ordinary Meeting held on Wednesday 18 March 2020 be confirmed as true and correct.



9. ANNOUNCEMENTS BY THE PERSON PRESIDING WITHOUTDISCUSSION:

The President, Cr Moira J Girando commended staff and thanked Councillor andMrs Jack on the work they are doing to keep their staff and the communityrunning.

10. MATTER FOR WHICH MEETING MAY BE CLOSED;

Item 14.1 Manager of Works & Services Contract of Employment


11. REPORTS:

11.1 ACTING CHIEF EXECUTIVE OFFICER:

11.1.1 DROUGHT COMMUNITY GRANT EXTENSION

Reporting Officer: Community & Economic Development Officer Responsible Executive: Acting Chief Executive Officer File Reference: ADM0297 – Community & Recreation Grants Disclosure of Interest: Nil Attachments: A – Approved Projects, B – Submitted Projects, C –

Assessment Criteria Outling, D – Weighting Matrix Voting Requirements: Simple Majority ____________________________________________________________________

COUNCIL ROLE

Executive The substantial direction setting and oversight role of the Council eg adopting plans and reports, accepting tenders, setting and amending budgets.

REPORT PURPOSE: That Council endorse and proceed to submit an application to the Drought Communities Program Extension 2020 for the projects outlined in Attachment A – Approved Projects.

BACKGROUND: On the 27 January the Federal government announced 52 WA Councils have access to the Drought Community Program – Extension. Coorow was named as one the Councils, having access to $1million.

At the February Ordinary Meeting, Council agreed to send out an Expression of Interest to community members.

At the March Ordinary Meeting, Council approved the inclusion of five Shire managed projects to be included in the application weighting process.

COMMENT: Expressions of interest closed at 4 pm, 9 April 2020 hence attachments A, B and C being submitted after the circulation of the April Agenda.

Projects were assessed on their eligibility based on the applicant, the activity for which funding was sought and whether the expenditure met the funding guidelines. Projects identified as meeting the eligibility criteria were rated according to the impact the project had in meeting the Drought Communities Program Extension 2020 intent; providing local employment, generating local cash flow, and the long term economic benefit to local businesses and suppliers.


Local Employment and Economic Activity items were given a rating between 1-3 Long Term Benefits were given a rating between 1-5 See attachment C – Assessment Criteria Outline

Assessment Criteria - Impacts

Local Employment and Economic Activity • Local or regional business and suppliers• Cashflow generated in local economy• $:$ ratio multiplier (Funding:Total Project)• Retention of Businesses, Services and Trades• Increased Tourism growth• Activity and Project meeting Funding Guidelines

Long Term Benefits • Value Add Opportunity• Linkage to another project• Improving a Community Asset• Drought Proofing• Improved Services• Provides Cost Savings• Enhancement of a Community Facility

Please refer to attachment D - weighting matrix

STAKEHOLDER ENGAGEMENT: ACEO Shire of Coorow DCEO Shire of Coorow Manager of Works Shire of Coorow

FINANCIAL / RESOURCE IMPLICATIONS: The funding is available until May 2021 with all projects required to be completed by 31 June 2021.

An application will be submitted in May 2020 to provide Council and community groups up to 10 months to complete all project work in line with grant acquittal time frames.

Advice received from the funding administration identified no need for the Shire to provide a financial cash component. Staff have excluded the previously identified $55,000 from Shire managed projects.

Council will need to adopt in kind works identified for Shire managed projects including capital works and administration in the 2020/2021 approved budget.


STATUTORY ENVIRONMENT: Nil

POLICY IMPLICATIONS: 3.7.2 – Asset Management

STRATEGIC IMPLICATIONS: The projects identified from the Shire’s Integrated Planning and Reporting documents are already included in the long term financial plan for future years.

RISK IMPLICATION: The Shire is the only applicant eligible to submit an application for the $1m which is available until 31 June 2021, when projects must be completed. Like projects may be bundled together to ensure the minimum project value of $25,000 is met.

Any offer of funding is subject to approval by the Australian Government which will undertake their own assessment process and make the final determination of successful projects.

Given that many local community assets and infrastructure is held in the care and control of community organisations and the like, Council agreed that it was necessary to share some project delivery responsibilities associated with expenditure of this funding. The relinquishing of governance, project and contractor management however to third parties has some inherent risks. To reduce these risks, and ensure this funding is being spent where it is intended, reporting of progress claims and lodgement of Tax Invoices will be required using processes staff will implement prior to releasing funds to community groups.

The necessity for community groups to submit quotes, evidence of any Shire consent or other regulatory/licencing approvals and details of the organisations’ previous project delivery experience provides reassurance to the Shire that the projects endorsed for lodgement will be completed on time and within budget.

Subject to final approval by the Australian Government, a Funding Agreement and project acquittal form has been developed. Council will deal with treatment of GST for the individual organisations, subject to their GST reporting status. The budget implication for those applicants currently not registered for GST has been considered and for a small number of projects, the funding request has been amended to accommodate the GST status of the particular community organisation.

As expected, the total funding request for very worthwhile projects is oversubscribed with many local community infrastructure projects not able to be included at this particular time. Council will continue to work with these community organisations to facilitate the application preparation for future funding opportunities. Please refer to Attachment B- submitted projects, for the comprehensive list of all received applications.


OFFICER RECOMMENDATION:

To approve the submission of an application to the Drought Communities Program Extension 2020 as per Attachment A – approved projects.


Moved: Cr Peck Seconded: Cr Oakes

To approve the submission of an application to the Drought Communities Program Extension 2020 for the following projects:

Applicant/Project Project Value

Grant Value

Coorow CWA – Upgrade CWA Rooms $32,716 $27,852 Coorow CRC – Upgrade Coorow Hall $127,481 $107,566 Shire of Coorow – Water Harvesting in Coorow $240,000 $200,000 Shire of Coorow – Coorow Town Scaping $80,000 $70,000 Shire of Coorow – Information Bay/Signage $121,074 $76,313 Coorow Heritage Society – Koobabbie Precinct $126,169 $126,169 Shire of Coorow – Coorow Caravan Park Beautification

$60,000 $50,000

St John Ambulance - GH Sub Centre Extension $57,813 $57,813 Coorow P&C – Stormwater Harvesting $28,700 $27,700 Green Head Sports Club/Bowls – Bore and Shade Structures

$30,520 $27,870

Leeman Sports Club $49,464 $47,092 Leeman Bowls Club – Lighting Towers $30,548 $29,548 Shire of Coorow – Council Chambers/Emergency Centre

$48,000 $48,000

Adverse Events Plan and Audit Administration $20,000


Reason for variation from Officer Recommendation: Steps at Three Bays Walkway and Pathway were removed due to timing issues The Chalets were removed because Council were opposed to spending that amount of money at this point in time.

Community & Economic Development Officer Ella Budrikis left the meeting at 5.25 pm

11.2 MANAGER OF WORKS AND SERVICES:


11.3 DEPUTY CHIEF EXECUTIVE OFFICER:

11.3.1 LIST OF ACCOUNTS PAID FOR THE MONTH OF MARCH 2020 Subject List of Accounts Paid Reporting Officer: Finance Officer Responsible Executive: Deputy Chief Executive Officer File Reference: ADM0652 – Financial Management Disclosure of Interest: Nil Attachments: List of Accounts for Payment Voting Requirements: Simple Majority ____________________________________________________________________

Council Role

Review When Council reviews decisions made by officers.

REPORT PURPOSE: For Council to accept the list of accounts paid since the last list was prepared.

BACKGROUND: The Chief Executive Officer has been delegated authority to make payments from the Municipal account. The Local Government (Financial Management) Regulations 1996 require a list of payments made under delegated authority to be prepared each month and presented to the next ordinary meeting of Council following the preparation of the list.

COMMENT: The list has been prepared showing payments made under delegation since the last list was prepared for the 18 March 2020 ordinary meeting of Council.

STAKEHOLDER ENGAGEMENT: Nil

FINANCIAL / RESOURCE IMPLICATIONS: Nil

STATUTORY ENVIRONMENT: Local Government (Financial Management) Regulations 1996

- s13 List of accounts

POLICY IMPLICATIONS: Nil

STRATEGIC IMPLICATIONS: Nil


RISK IMPLICATIONS: This review process should help to ensure that payments are always made under the correct authority.




That the list of accounts paid under delegated authority for the month of March 2020 as presented be accepted, including

MUNICIPAL FUND Cheques 20363 - 20371 $ 4,415.23 Payroll DD’s 01/03/2020 – 31/03/2020 $ 152,848.65 EFTS 14892 - 15004 $ 279,418.83 Direct Debits 01/03/2020 – 31/03/2020 $ 53,956.66 TOTALLING $ 490,639.37

TRUST FUND EFTS N/A $ 0.00 Cheques N/A $ 0.00 TOTALLING $ 0.00



11.3.2 MONTHLY STATEMENT OF FINANCIAL ACTIVITY – MARCH 2020

Reporting Officer: Deputy Chief Executive Officer Responsible Executive: Deputy Chief Executive Officer File Reference: ADM0652 – Financial Management-EOM Processing Disclosure of Interest: Nil Attachments: 11.3.2 – Monthly Statement of Financial Activity Voting Requirements: Simple Majority ____________________________________________________________________

Council Role:


REPORT PURPOSE: For Council to accept the Monthly Statement of Financial Activity.

BACKGROUND: In accordance with the Local Government (Financial Management) Regulations 1996, regulation 34 stipulates that a Local Government is to prepare each month a statement of financial activity reporting on the sources and applications of funds, as set out in the annual budget under regulation 22(1) (d), for that month.

The form of the Monthly Financial Statements usually presented to Council is a Statement of Financial Activity, which also includes supplementary information including an Operating Statement Function and Activity, Balance Sheet and Cash Flow Graph.

COMMENT: The Shire is required to prepare the Statement of Financial Activity as per Local Government (Financial Management) Regulation 36, but can resolve to have supplementary information included as required.

All mandatory information is provided and the closing surplus balances to the net current assets at 31 March 2020.

STAKEHOLDER ENGAGEMENT: Nil

FINANCIAL / RESOURCE IMPLICATIONS: Nil

STATUTORY ENVIRONMENT: Local Government (Financial Management) Regulations 1996

- s34 Financial activity statement required each month(Act s. 6.4)


POLICY IMPLICATIONS: Nil

STRATEGIC IMPLICATIONS: Nil

RISK IMPLICATIONS: Nil




That the Monthly Statement of Financial Activity as included at Attachment 11.3.2 for the period ended 31 March 2020 be accepted.



SHIRE OF COOROW

MONTHLY FINANCIAL REPORT(Containing the Statement of Financial Activity)

For the Period Ended 31 March 2020

LOCAL GOVERNMENT ACT 1995

LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Amount $ ( '000s)

Month ending

Budget Operating Revenues ‐v‐ Actual (Refer Note 1)

Budget 2019‐20

Actual 2019‐20

0

2000

4000

6000

8000

10000

12000


Amount $ ( '000s)

Month ending

Budget Operating Expenses ‐v‐ YTD Actual (Refer Note 1)

Budget 2019‐20

Actual 2019‐20

0

100

200

300

400

500

600

700

800

900


Amount $ ( '000s)

Month ending

Budget Capital Revenue ‐v‐ Actual (Refer Note 1)

Budget 2019‐20

Actual 2019‐20

0

500

1,000

1,500

2,000

2,500


Amount $ ( '000s)

Month ending

Budget Capital Expenses ‐v‐ Actual (Refer Note 1)

Budget 2019‐20

Actual 2019‐20


Var. $

(b)‐(a)

Var. %

(b)‐(a)/(a)Var.

$ $ $ $ $ %

Opening Funding Surplus (Deficit) 2,008,404 2,008,404 2,008,404 (0) (0%)

Revenue from operating activitiesRates 3,299,495 3,299,627 192 3,269,374 (30,252) (1%)

Operating Grants, Subsidies and 0

Contributions 1,170,494 911,485 25,580 931,336 19,851 2%

Fees and Charges 579,263 517,575 17,110 530,397 12,822 2%

Interest Earnings 118,326 64,448 12,188 55,401 (9,047) (14%)

Other Revenue 59,050 55,033 1,224 63,008 7,975 14%

Profit on Disposal of Assets 42,061 4,482 0 0 (4,482) (100%)

5,268,690 4,852,650 56,294 4,849,517 (3,133) (0%)

Expenditure from operating activities

Employee Costs (2,204,965) (1,652,769) (163,836) (1,287,543) 365,226 22%

Materials and Contracts (2,090,089) (1,563,242) (123,370) (1,240,264) 322,978 21%

Utility Charges (275,401) (206,109) (8,625) (227,064) (20,955) (10%)

Depreciation on Non‐Current Assets (6,271,412) (4,703,490) (524,849) (4,634,006) 69,484 1%

Interest Expenses (7,422) (5,562) 0 (4,414) 1,148 21%

Insurance Expenses (207,007) (180,794) 0 (204,491) (23,697) (13%)

Other Expenditure (75,976) (56,982) (13,251) (58,372) (1,390) (2%)

Loss on Disposal of Assets (116,564) (79,380) 0 (8,389)(11,248,835) (8,448,328) (833,931) (7,664,542) 783,786 9%

Operating activities excluded from budgetAdd back Depreciation 6,271,412 4,703,490 524,849 4,634,006 (69,484) (1%)

Adjust (Profit)/Loss on Asset Disposal 74,503 74,898 0 8,389 (66,509) (89%)

Adjust Provisions and Accruals 3,963 7 0 2 (6) (76%)

Amount attributable to operating activities 369,732 1,182,717 (252,788) 1,827,372 644,655

Investing activitiesGrants, Subsidies and Contributions 877,844 686,213 301,247 854,936 168,723 25%

Proceeds from Disposal of Assets 210,057 140,508 0 97,091 (43,417) (31%)

Land and Buildings (466,753) (373,569) (176,508) 197,061 53%

Infrastructure Assets ‐ Roads (1,621,526) (1,473,205) (1,263,930) 209,275 14%

Infrastructure Assets ‐ Other (459,820) (406,540) (289,911) 116,629 29%

Infrastructure Assets ‐ Footpaths (86,993) (69,877) 0 69,877 100%

Infrastructure Assets ‐ Drainage (13,000) (13,000) (13,046) (46) (0%)

Plant and Equipment (532,241) (445,756) (202,502) 243,254 55%

Amount attributable to investing activities (2,092,432) (1,955,226) 301,247 (993,869) 961,357 49%

Financing ActivitiesProceeds from Advances 22,047 0 21,879 10,940 10,940

Transfer from Reserves 120,319 0 0 0 0

Repayment of Debentures (37,293) (27,963) 0 (26,185) 1,778 6%

Transfer to Reserves (390,777) 0 0 0 0

Amount attributable to financing activities (285,704) (27,963) 21,879 (15,245) 12,718 45%

Closing Funding Surplus (Deficit) 0 1,207,932 70,338 2,826,661 1,618,729 134%

Indicates a variance between Year to Date (YTD) Budget and YTD Actual data as per the adopted materiality threshold.

Refer to Note 2 for an explanation of the reasons for the variance.

This statement is to be read in conjunction with the accompanying Financial Statements and notes.

SHIRE OF COOROWSTATEMENT OF FINANCIAL ACTIVITY

(By Nature or Type)For the Period Ended 31 March 2020

Amended

Annual

Budget

Amended YTD

Budget

(a)

YTD

Actual

(b)

This Month

Actual

(b)

2


Note 1: Explanation of Material Variances

The material variance thresholds are adopted annually by Council as an indicator of whether the actual expenditure or revenue varies from the year to date budget materially.The material variance adopted by Council for the 2019/20 year is $10,000 or 10% whichever is the greater.

Reporting Program Var. $ Var. %

Var.

Timing/

PermanentExplanation of Variance

Operating Revenues $ %

Rates (30,252) ‐1%

Operating Grants, Subsidies and 0

Contributions 19,851 2%

Fees and Charges 12,822 2%

Service Charges 0

Interest Earnings (9,047) ‐14%

Other Revenue 7,975 14%

Operating Expense

Employee Costs 365,226 22% U Permanent Combination of several unbudgeted capital jobs and not all

positions being occupied in the works and admin areas

Materials and Contracts 322,978 21% U Timing Combination of several unbudgeted capital jobs and minor

underexpenditure across a number of accounts

Utility Charges (20,955) ‐10% O Permanent Water usage at Maley Park Oval is significantly higher than

budgeted

Depreciation on Non‐Current Assets 69,484 1%

Interest Expenses 1,148 21%

Insurance Expenses (23,697) ‐13% O Timing Budget profiling for some accounts were spread throughout the

year instead of the two instalment dates

Other Expenditure (1,390) ‐2%

Capital Revenues

Grants, Subsidies and Contributions 168,723 25% O Timing R2R and RRG funds all received earlier than budgeted

Proceeds from Disposal of Assets (43,417) (31%) U Timing The Prime Mover has yet to be traded

Capital Expenses

Land and Buildings 197,061 53% U Timing A number of capital projects not carried out yet

Infrastructure ‐ Roads 209,275 14% U Timing A number of coastal jobs have yet to commence

Infrastructure ‐ Other 116,629 29% U Timing A number of coastal jobs have yet to commence

Infrastructure ‐ Footpaths 69,877 100% U Timing The footpath jobs have yet to commence

Plant and Equipment 243,254 55% U Timing The Primer Mover has yet to be delivered

Financing

Transfer from Reserves 0

Loan Principal Repayments 1,778 6%

Transfer to Reserves 0

SHIRE OF COOROWNOTES TO THE STATEMENT OF FINANCIAL ACTIVITY


3


Note 2: Net Current Funding Position

Last Years

Closing

This Time Last

Year Current

30 June 2020 01 Apr 2019 31 Mar 2020

$ $ $

Current Assets

Cash Unrestricted 2,230,610 2,481,653 2,940,935

Cash Restricted ‐ Conditions over Grants 0 0 0Cash Restricted 1,593,194 1,135,633 1,593,194Receivables ‐ Rates 123,145 262,993 183,607Receivables ‐ Other (136,966) 42,768 38,961Inventories 29,380 36,305 17,851

3,839,363 3,959,353 4,774,548

Less: Current LiabilitiesPayables (255,123) (33,497) (132,990)Provisions Loans (37,293) (10,774) (11,108)Provisions Leave (390,744) (396,602) (390,744)

(683,159) (440,873) (534,842)

Less: Cash Reserves (1,593,194) (1,135,633) (1,593,194)Less: Unspent Grants 0 0 0Add: Loan Current 37,293 10,774 11,108Less: SSL Sundry Debtors 227,953 (10,774) (11,108)Add: Leave Reserve 180,148 176,674 180,148

Net Current Funding Position 2,008,404 2,559,520 2,826,661

Comments ‐ Net Current Funding Position

SHIRE OF COOROW

NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY


Positive=Surplus (Negative=Deficit)

0

1000

2000

3000

4000

5000

6000

7000


Amount $ ( '000s)

Note 2 ‐ Liquidity Over the Year

2019‐20

2018‐19

2017‐18

4


Note 3: Cash and Investments

Total

Unrestricted Restricted Trust Amount

$ $ $ $

(a) Cash Deposits

Muni Cash At Bank 21,393 21,393

Muni Telenet Saver 668,591 668,591

Municipal Fund Term Deposits 2,250,000 2,250,000

Cash at Reserve ‐ Bank 4 4

Reserve Fund Term Deposits 1,593,190 1,593,190

Trust Fund Bank 94,683 94,683

Petty Cash Float 951 951

Total 2,940,935 1,593,194 94,683 4,628,812

Comments/Notes ‐

Term Deposit For Amount Held With Interest Rate Matures Interest Expected

Municipal Funds 0 ME Bank 2.00% 13/03/2020

Municipal Funds 250,000 ME Bank 2.00% 13/04/2020

Municipal Funds 250,000 ME Bank 1.20% 18/04/2020 250.00


Municipal Funds ME Bank 2.10% 30/10/2019

Municipal Funds 0 ME Bank 28/02/2020

Municipal Funds 250,000 ME Bank 30/03/2020 Applied to close on maturity

Municipal Funds 250,000 ME Bank 20/04/2020



Municipal Funds 0 ME Bank 2.05% 16/03/2020


Municipal Funds 250,000 BankWest 1.23% 18/05/2020 512.50



2,250,000

Reserve Fund 1,593,190 ME Bank 2.00% 9/06/2020

SHIRE OF COOROW



Institution

BankWest

BankWest

BankWest

BankWest

ME Bank

ME Bank

5


Note 4: Budget AmendmentsAmendments to original budget since budget adoption. Surplus/(Deficit) Current Budget

Prog

Sub

Prog Description

Non Cash

Adjustment Original Budget Variation Current Budget

Amended Budget

Running Balance

$ $ $ $ $Budget Adoption 0Permanent Changes

Opening surplus adjustment ‐115,045.00 ‐115,045

03 0301 Rates ‐3,039,792.72 ‐30,000.00 ‐3,069,792.72 ‐145,045

03 0302 Other General Purpose Funding ‐793,058.18 ‐89,000.00 ‐882,058.18 ‐234,045

04 0401 Members of Council 196,589.20 ‐36,000.00 160,589.20 ‐270,045

04 0402 Other Governance 466,503.00 ‐15,000.00 451,503.00 ‐285,045

05 0501 Fire Prevention 197,646.00 5,700.00 203,346.00 ‐279,345

05 0502 Animal Control 17,635.00 0.00 17,635.00 ‐279,345

05 0503 Other Law, Order & Public Safety 241,272.40 0.00 241,272.40 ‐279,345

07 0704 Preventative Services ‐ Inspection/Admin 60,672.00 0.00 60,672.00 ‐279,345

07 0705 Preventative Services ‐ Pest Control 16,915.00 0.00 16,915.00 ‐279,345

07 0707 Other Health 58,854.68 ‐8,000.00 50,854.68 ‐287,345

08 0803 Care of Families and Other Children 13,647.31 0.00 13,647.31 ‐287,345

08 0806 Aged & Disabled ‐ Other 33,916.44 0.00 33,916.44 ‐287,345

08 0807 Other Welfare 47,358.54 0.00 47,358.54 ‐287,345

09 0901 Staff Housing 105,843.61 108,868.00 214,711.61 ‐178,477

09 0902 Other Housing ‐14,630.92 5,000.00 ‐9,630.92 ‐173,477

10 1001 Sanitation ‐ General 200,794.11 ‐6,000.00 194,794.11 ‐179,477

10 1002 Sanitation ‐ Other 19,647.67 0.00 19,647.67 ‐179,477

10 1003 Sewerage 13,650.00 ‐8,500.00 5,150.00 ‐187,977

10 1004 Urban Stormwater Drainage 78,795.78 0.00 78,795.78 ‐187,977

10 1005 Protection of the Environment 19,285.74 0.00 19,285.74 ‐187,977

10 1006 Town Planning & Regional Development 61,733.00 ‐10,000.00 51,733.00 ‐197,977

10 1007 Other Community Amenities 404,624.26 85,000.00 489,624.26 ‐112,977

11 1101 Public Halls and Civic Centre 528,377.51 7,500.00 535,877.51 ‐105,477

11 1102 Swimming Areas and Beaches 376,065.76 0.00 376,065.76 ‐105,477

11 1103 Other Recreation and Sport 1,217,208.55 8,500.00 1,225,708.55 ‐96,977

11 1104 TV & Radio Re‐Broadcasting ‐3,125.63 0.00 ‐3,125.63 ‐96,977

11 1105 Libraries 71,394.01 0.00 71,394.01 ‐96,977

11 1107 Other Culture 39,494.74 ‐24,000.00 15,494.74 ‐120,977

12 1201 Construction ‐ Streets, Roads, Bridges & Depots 736,150.59 152,000.00 888,150.59 31,023

12 1202 Maintenance ‐ Streets, Roads, Bridges & Depots 6,211,804.30 ‐8,000.00 6,203,804.30 23,023

12 1203 Road Plant Purchases 663,778.96 20,477.04 684,256.00 43,500

12 1205 Traffic Control (Vehicle Licensing) 3,877.00 ‐15,000.00 ‐11,123.00 28,500

12 1206 Aerodromes 19,464.18 0.00 19,464.18 28,500

13 1301 Rural Services 18,831.00 ‐5,000.00 13,831.00 23,500

13 1302 Tourism and Area Promotion 132,175.67 ‐6,000.00 126,175.67 17,500

13 1303 Building Control 90,595.00 0.00 90,595.00 17,500

13 1306 Other Economic Services 16,652.00 0.00 16,652.00 17,500

13 1308 Other Economic Services ‐1,155.00 0.00 ‐1,155.00 17,500

14 1401 Private Works ‐15,530.00 0.00 ‐15,530.00 17,500

14 1402 General Administration Overheads 36,532.20 ‐17,500.00 19,032.20 0

14 1403 Public Works Overheads ‐200.21 0.00 ‐200.21 0

14 1404 Plant Operating Costs ‐50,000.00 0.00 ‐50,000.00 0

14 1405 Salaries and Wages 0.00 0.00 0.00 0

0.00 8,500,293 0 8,615,338

SHIRE OF COOROWNOTES TO THE STATEMENT OF FINANCIAL ACTIVITY


6


Note 5: Cash Backed Reserve

Name Opening Balance

Amended

Budget Interest

Earned

Actual Interest

Earned

Amended

Budget

Transfers In

(+)

Actual

Transfers In

(+)

Amended

Budget

Transfers Out

(‐)

Actual

Transfers Out

(‐)

Amended

Budget

Closing

Balance

Actual YTD Closing

Balance

$ $ $ $ $ $ $ $ $

Leave Reserve 180,148 3,963 0 0 0 0 0 184,111 180,148

Building Reserve 252,005 5,544 0 147,868 0 0 0 405,417 252,005

Resource Sharing Reserve 25,380 558 0 0 0 0 0 25,938 25,380

Plant Reserve 582,352 12,812 0 104,759 0 0 0 699,923 582,352

Rebroadcasting Reserve 27,649 608 0 0 0 (2,446) 0 25,811 27,649

Joint Venture Housing Reserve 48,690 1,071 0 0 0 (116) 0 49,645 48,690

Bowling Club Reserve 6,537 144 0 2,100 0 0 0 8,781 6,537

Road Infrastructure Reserve 115,222 2,535 0 0 0 (117,757) 0 0 115,222

Pool Revitalisation Reserve 349,619 7,692 0 50,000 0 0 0 407,311 349,619

Tourist Infrastructure Reserve ‐ Accumulation 5,592 123 0 51,000 0 0 0 56,715 5,592

1,593,194 35,050 0 355,727 0 (120,319) 0 1,863,652 1,593,194

SHIRE OF COOROW



7


Note 6: Capital Acquisitions

Assets Job New/Upgrade Renewal Total YTD

Annual

Budget YTD Budget YTD Variance

Strategic Reference /

Comment

$ $ $ $ $ $Level of completion indicator, please see table at the end of this note for further detail.BuildingsLaw, Order & Public Safety

Green Head Fire Shed ‐ Capital BC047 5,606 0 5,606 5,700 5,700 (94)Law, Order & Public Safety Total 5,606 0 5,606 5,700 5,700 (94)

Housing6, Lot 131 Spain Street ‐ Capital BC000 48,346 0 48,346 50,000 37,503 10,8437, Lot 29 Spain Street ‐ Capital BC013 2,698 0 2,698 3,000 3,000 (302)2, Lot 9 Thomas Street ‐ Capital BC019 0 0 0 0 0 029, Lot 49 Nairn Street ‐ Capital BC020 6,888 0 6,888 19,000 14,247 (7,359)63, Lot 64 Nairn Street ‐ Capital BC022 0 0 0 10,000 7,497 (7,497)5, Lot 520 Tuart Street ‐ Capital BC023 7,958 0 7,958 8,000 8,000 (43)11, Lot 490 Tamarisk Street ‐ Capital BC025 0 0 0 6,000 6,000 (6,000)9, Lot 453 Morcombe Road ‐ Capital BC054 0 0 0 5,000 3,744 (3,744)Unit A Brand Street ‐ Capital BC055 306 0 306 0 0 306Unit B Brand Street ‐ Capital BC056 0 0 0 0 0 0

Housing Total 66,196 0 66,196 101,000 79,991 (13,795)Community Amenities

Dynamite Bay Toilet ‐ Capital BC027 0 0 0 200,000 0 0Cliff Park Toilet ‐ Capital BC032 0 0 0 2,000 0 0

Community Amenities Total 0 0 0 202,000 0 0Recreation And Culture

Coorow Bowling Club ‐ Capital BC031 190 0 190 5,000 3,744 (3,554)Coorow Hall ‐ Capital BC033 3,239 0 3,239 3,000 2,250 989Maley Park Facilities ‐ Capital BC034 445 0 445 0 0 445Green Head Community Centre ‐ Capital BC036 20,102 0 20,102 20,000 20,000 102Coorow Golf Club Buildings ‐ Capital BC050 18,020 0 18,020 20,000 20,000 (1,980)Dynamite Bay Rotunda/Shelters ‐ Capital BC051 445 0 445 5,000 3,744 (3,299)Green Head Sporting Club BC062 28,787 0 28,787 28,000 20,997 7,790Cliff Park Gazebo ‐ Capital BC063 8,000 0 8,000 8,500 6,372 1,628LEEMAN FORESHORE GAZEBO (CAPITAL) BC064 0 0 0 5,000 3,744 (3,744)Morphett Park Gazebo (Capital) BC065 4,995 0 4,995 0 0 4,995Koobabbie Collection 4110710 5,000 0 5,000 6,000 6,000 (1,000)

Recreation And Culture Total 89,223 0 89,223 100,500 86,851 2,372Transport

Coorow Depot ‐ Capital BC039 1,400 0 1,400 15,000 11,250 (9,850)Leeman Depot ‐ Capital BC040 1,855 0 1,855 5,053 3,789 (1,934)Green Head Depot ‐ Capital BC041 0 0 0 12,000 9,000 (9,000)

Transport Total 3,255 0 3,255 32,053 24,039 (20,784)Economic Services

Coorow Caravan Park ‐ Capital BC042 1,078 0 1,078 0 0 1,078Economic Services Total 1,078 0 1,078 0 0 1,078

Other Property & ServicesCoorow Administration Centre ‐ Capital BC001 11,150 0 11,150 20,000 20,000 (8,850)Leeman Administration Centre ‐ Capital BC002 0 0 0 5,500 5,500 (5,500)

SHIRE OF COOROW



YTD Actual Amended Budget

8




Annual



Comment

$ $ $ $ $ $

SHIRE OF COOROW




Other Property & Services Total 11,150 0 11,150 25,500 25,500 (14,350)

Buildings Total 176,508 0 176,508 466,753 222,081 (45,573)

Plant & Equipment (inc Furniture)Law, Order & Public Safety

CW0050 Ranger Utility (Capital) PE0050 0 0 0 45,000 0 0Law, Order & Public Safety Total 0 0 0 45,000 0 0

TransportCW003 Leading Hand Ute (Capital) PE0003 0 0 0 41,485 0 0CW0010 Prime Mover (Capital) PE0010 0 0 0 243,000 243,000 (243,000)CW0018 Vibe Roller (Capital) PE0018 144,850 0 144,850 145,348 145,348 (498)Sundry Plant & Equipment (Capital) PE6 3,163 0 3,163 2,800 2,800 363CW3505 Mechanic Ute (Capital) PE3505 0 0 0 0 0 0

Transport Total 148,013 0 148,013 432,633 391,148 (243,135)Other Property & Services

CW001 CEO Vehicle (Capital) PE0001 54,488 0 54,488 54,608 54,608 (120)Other Property & Services Total 54,488 0 54,488 54,608 54,608 (120)

Plant & Equipment Total 202,502 0 202,502 532,241 445,756 (243,254)

Infrastructure Assets ‐ RoadsTransport

Buntine Marchagee Road (Capital) Council Funded RC002 32,441 0 32,441 32,500 32,500 (59)South Waddy Road (Capital) Council Funded RC005 0 0 0 0 0 0Waddy Forest Road (Capital) Council Funded RC013 0 0 0 0 0 0Teasdale Road (Capital) Council Funded RC026 11,466 0 11,466 11,500 11,500 (34)Martin Road (Capital) Council Funded RC057 37,686 0 37,686 52,433 0 37,686Howards Road (Capital) Council Funded RC058 27,927 0 27,927 28,000 28,000 (73)Shack Track (Capital) Council Funded RC075 0 0 0 70,000 52,497 (52,497)Ocean View Drive (Capital) Council Funded RC095 16,327 0 16,327 58,214 58,214 (41,887)OCEAN VIEW DRIVE 2 (CAPITAL) RC295 0 0 0 67,279 67,279 (67,279)Kau Street (Capital) Council Funded RC101 2,481 0 2,481 47,521 47,521 (45,040)Bierman Street (Capital) Council Funded RC102 785 0 785 40,642 30,465 (29,680)NAIRN STREET (CAPITAL) COUNCIL FUNDED RC114 29,838 0 29,838 30,000 30,000 (162)Beros Road (Capital) Council Funded RC126 4,083 0 4,083 4,000 4,000 83Coorow‐Greenhead Road (Capital) Council Funded RC162 38,280 0 38,280 0 0 38,280Coorow‐Latham Road (Capital) Council Funded RC164 32,927 0 32,927 33,000 33,000 (73)South Waddy Road (Capital) R2R R2R005 82,196 0 82,196 132,710 132,710 (50,513)Waddy Forest Road (Capital) R2R R2R013 62,342 0 62,342 119,142 113,937 (51,594)WUBIN‐GUNYIDI ROAD (CAPITAL) R2R R2R165 101,631 0 101,631 161,612 161,611 (59,980)Coorow‐Greenhead Road East (Capital) RRG RRG161 261,591 0 261,591 251,900 188,901 72,690Coorow‐Greenhead Road West (Capital) RRG RRG162 521,930 0 521,930 481,072 481,072 40,859Wubin‐Gunyidi Road (Capital) RRG RRG165 0 0 0 0 0 0

Transport Total 1,263,930 0 1,263,930 1,621,526 1,473,205 (209,275)

Infrastructure Roads Total 1,263,930 0 1,263,930 1,621,526 1,473,205 (209,275)

9




Annual



Comment

$ $ $ $ $ $

SHIRE OF COOROW




Infrastructure Assets ‐ DrainageTransport

Nairn Street Drainage (Capital) DC114 13,046 13,046 13,000 13,000 46Transport Total 13,046 0 13,046 13,000 13,000 46

Infrastructure Assets ‐ Drainage Total 13,046 0 13,046 13,000 13,000 46

FootpathsTransportOcean View Drive Footpath (Capital) FC095 0 0 0 26,748 20,043 (20,043)OCEAN VIEW DRIVE FOOTPATH 2 (CAPITAL) FC295 0 0 0 24,748 18,540 (18,540)Kau Street Footpath (Capital) FC101 0 0 0 16,748 12,546 (12,546)Bierman Street Footpath (Capital) FC102 0 0 0 18,748 18,748 (18,748)

Transport Total 0 0 0 86,993 69,877 (69,877)

Footpaths Total 0 0 0 86,993 69,877 (69,877)Other InfrastructureCommunity Amenities

Coastal Cemetery (Capital) OC048 80,063 0 80,063 85,000 85,000 (4,937)Community Amenities Total 80,063 0 80,063 85,000 85,000 (4,937)

Recreation And CultureLeeman Foreshore Infrastructure (Capital) OC004 21,500 0 21,500 70,000 70,000 (48,500)Green Head Skate Park (Capital) OC009 0 0 0 0 0 0Maley Park Infrastructure (Capital) OC034 94,459 0 94,459 123,120 92,340 2,119Wann Park Infrastructure (Capital) OC035 249 0 249 0 0 249Coorow Skate Park (Capital) OC036 0 0 0 0 0 0Morphett Park Infrastructure (Capital) OC042 482 0 482 0 0 482Dynamite Bay Infrastructure (Capital) OC043 49,110 0 49,110 49,000 49,000 110Lakes Park (Capital) OC046 2,763 0 2,763 0 0 2,763Green Head Sports Club Other Infrastructure (Capital) OC062 0 0 0 22,700 22,700 (22,700)Lot 601 Park, Peterson Place (Capital) OC064 18,027 0 18,027 20,000 20,000 (1,973)Coorow Swimming Pool (Capital) OC037 23,257 0 23,257 90,000 67,500 (44,243)Three Bays Walkway (Capital) OC065 0 0 0 0 0 0

0 0 0 0 0 0Recreation And Culture Total 209,848 0 209,848 374,820 321,540 (111,692)

Other Infrastructure Total 289,911 0 289,911 459,820 406,540 (116,629)

Capital Expenditure Total 1,945,896 0 1,945,896 3,180,332 2,630,459 (684,563)

Level of Completion Indicators0%20%40% Percentage YTD Actual to Annual Budget60% Expenditure over budget highlighted in red.80%100%Over 100%

11


11.3.3 PROPOSED DIFFERENTIAL RATES FOR 2020/2021 Reporting Officer: Deputy Chief Executive Officer Responsible Executive: Acting Chief Executive Officer File Reference: ADM0085 – Rates & Variations – Rate Classification,

General Disclosure of Interest: Nil Attachments: Differential Rates Modelling, Draft 2020/2021 Budget Voting Requirements: Absolute Majority ____________________________________________________________________ Council Role:


REPORT PURPOSE: Council is requested to consider the proposed differential rates to be advertised for 2020/2021 to achieve a 0% rates increase. BACKGROUND: OFFICER RECOMMENDATION: That the Shire:

1. Advertise its intention, in accordance with Section 6.36 of the Local Government Act 1995 to adopt the following rates in the dollar and minimum rates for the differential rating categories specified for the 2020/2021 financial year, and if no submissions are received, that Ministerial approval be requested.

RATE CATEGORY

BASIS 2020/2021 RATE

(cents in the dollar)

2020/2021 MINIMUM

2020/2021 Average Rates

(ex minimum)

2019/2020 Average

Rates (ex

minimum) Agriculture UV 1.5680 $815 10,249 10,194 Mining UV 16.7291 $815 7,290 7,348 Exploration UV 11.0295 $300 1,151 1,151

2. State its objectives and reasons in levying differential rates as:

“The objective of Council’s Differential Unimproved Value Rating is to ensure that rates are levied equitably on Agricultural, Mining and Exploration Properties in the Shire of Coorow and for each land user to make a reasonable contribution to road maintenance.


Reasons for levying UV – Agriculture Rate The different methods required to calculate the UV for agricultural, mining and exploration properties means that agricultural assessments have a much higher value than mining and exploration ones. The average valuation for agricultural properties is $626,192. Agricultural property values are based on what the land could be sold for, whereas mining and exploration assessments are based on their annual rental value, multiplied by a factor which is determined by their size. Properties with an agricultural use therefore have a much higher unimproved value. Under the current valuation regime, the only way fair way that agricultural properties can be required to contribute to the services they receive and the maintenance of the road network is for them to be on a much lower rate in the dollar than mining and exploration properties. The proposed differential rates in the dollar for UV rated properties would mean that the average rates levied on agricultural assessments (excluding minimums) would be $10,249, which is still higher than the average mining and exploration assessments (excluding minimums) of $7,290 and $1,151 respectively. Reasons for levying UV – Mining Rate The different methods required to calculate the UV for agricultural, mining and exploration properties means that mining and exploration assessments have a much lower value than agricultural ones. Agricultural property values are based on what the land could be sold for, whereas mining and exploration assessments are based on their annual rental value, multiplied by a factor which is determined by their size. Properties with a mining use therefore have a much lower unimproved value than agricultural uses. The average valuation for mining properties is $25,279. Extractive industries such as lime sand and dolomite generate a significant volume of heavy vehicle traffic on local roads, much more than a property used for agricultural or exploration purposes, therefore costing the Shire a lot more in road maintenance and renewal. The Shire of Coorow does not charge heavy haulage fees, or extractive industry fees. This means that under the current valuation regime, the only way that mining properties can fairly be required to contribute to the maintenance of the road network is for them to be on a much higher rate in the dollar than agricultural properties. The proposed differential rates in the dollar for UV rated properties would


mean that the average mining assessment (excluding minimums) would be $7,290. If the mining assessments were rated using the same rate in the dollar as agricultural assessments, their average rate would only be $880, as all but four assessments would be on the minimum rate. Differential rating allows Council to maintain a degree of parity between rates levied on all unimproved value (UV) assessments within the Shire of Coorow rate base whilst providing income annually to allow for the service requirements of all property owners. Reasons for levying UV – Exploration Rate The different methods required to calculate the UV for agricultural, mining and exploration properties means that mining and exploration assessments have a much lower value than agricultural ones. Agricultural property values are based on what the land could be sold for, whereas mining and exploration assessments are based on their annual rental value, multiplied by a factor which is determined by their size. Properties with an exploration use therefore have a much lower unimproved value than agricultural uses. The average valuation for exploration properties is $5,827. Exploration activities rarely generate a significant volume of heavy vehicle traffic on local roads, much less than a property used for agricultural or mining purposes, therefore costing the Shire very little in road maintenance and renewal. There is still a cost in administering these types of assessments however, so a minimum rate of $300 is proposed to cover administration costs. The lowest possible rate in the dollar has been proposed for this category which would result in less than 50% of properties being on this minimum rate. The proposed differential rates in the dollar for UV rated properties would mean that the average exploration assessment (excluding minimums) would be $1,151. If the exploration assessments were rated using the same rate in the dollar as agricultural assessments, their average rate would be $815 as they would all be on the minimum rate. Differential rating allows Council to maintain a degree of parity between rates levied on all unimproved value (UV) assessments within the Shire of Coorow rate base whilst providing income annually to allow for the service requirements of all property owners. Differential General Rate

Description Characteristics Objects Reasons UV – Agricultural

Properties used predominantly for

To ensure all ratepayers

To compensate for the much


agricultural purposes

contribute an equitable share to maintaining the Shire’s assets and services

higher unimproved value of agricultural assessments compared to mining assessments

UV – Mining Properties with a land use associated with mining leases/tenements

To ensure all ratepayers contribute an equitable share to maintaining the Shire’s assets and services

To compensate for the much lower unimproved value of mining assessments compared to agricultural assessments and high impact on road maintenance requirements

UV – Exploration

Properties with a land use associated with exploration permits


To compensate for the much lower unimproved value of exploration assessments compared to agricultural assessments and low impact on road maintenance requirements

Differential Minimum Rate


Properties used predominantly for agricultural purposes

This rate is considered the minimum contribution for basic services and infrastructure


UV – Mining Properties with a land use associated with a

This rate is as close to the other minimum

This rate ensures that less than 50%


mining lease/tenement

rates as legislation will allow

of assessments in this category are on the minimum rate

UV – Exploration


To cover basis costs of administering a rate assessment.

This rate is reflective of the lowest minimum rate considered appropriate to cover administrative costs.

3. Prepare the 2020/2021 annual Budget incorporating a 0% rate increase,

noting that the increase is less than the 4% projected in the Long Term Financial Plan as a result of a request by the Premier of Western Australia for local governments to freeze all rates and charges because of the economic impact of the Covid 19 pandemic.

4. Confirms that it has reviewed its expenditure and considered efficiency measures as part of its budget deliberations including the removal of a discount on rates and the reduction in a number of operating accounts including: • valuation expenses • Councillor training • Members printing & stationary • donations to community groups • Banners in the Terrace • audit fees • aged units maintenance • other house building maintenance • town halls & public building maintenance • swimming pool maintenance/operations • caravan park building maintenance

5. Confirms that the following additional capital expenditure has been removed

or deferred to achieve a 0% rates rise as requested by the State Premier: • The Lakes Road Footpath • Leeman Foreshore Redevelopment • Transfers to Building and Tourist Infrastructure Reserves


COMMENT: This year the Premier of Western Australia has implored all local governments to adopt a 0% rise on rates and fees/charges in recognition of the economic impact of the Covid 19 pandemic. He has also asked local governments to bring forward any expenditure it can by using their cash reserves or borrowing money. The Shire of Coorow has yet to consider this possibility, but is already budgeting to transfer approximately one third of its reserves to fund capital projects in 2020/21 and to borrow $600,000 for the Coorow Swimming Pool redevelopment. As a result of the bushfires in the eastern states, LGIS has advised staff that it expects insurance premiums for the sector to rise by approximately 10%. A quotation for the Shire’s 2020/21 insurance premiums has yet to be sought, Staff will scrutinise the insurance value of its buildings and plant to see if any reductions can be made. The draft 2020/2021 budget has therefore been prepared based in accordance with the following assumptions:

• 0% overall rates increase • 0% increase to fees and charges • 0% wage increase for staff • 10% increase on insurance costs • CPI increase of 2.25% • 2.25% operating grant increases

A number of operating budget items have been reduced and capital expenditure from the Long Term Financial Plan removed or deferred to achieve a balanced budget. Differential Rates Extractive industries such as lime sand and dolomite generate a significant volume of heavy vehicle traffic on local roads, much more than a property used for agricultural purposes, therefore costing the Shire a lot more in road maintenance and renewal. The different methods required to calculate the UV for agricultural and mining properties means that mining assessments have a much lower value than agricultural ones. Agricultural property values are based on what the land could be sold for, whereas mining assessments are based on their annual rental value, multiplied by a factor which is determined by their size. Properties with a mining use therefore have a much lower unimproved value. The Shire of Coorow does not charge a heavy haulage fee, or extractive industry licence, so under the current valuation regime, the only way that mining properties can be required to contribute to the maintenance of the road network fairly is for them to be on a much higher rate in the dollar than agricultural properties. The


higher rate in the dollar brings their rates more closely to that of agricultural properties. The proposed differential rates are therefore based on having three categories of UV rates as follows:

• UV Agricultural • UV Exploration • UV Mining

The proposed differential rates in the dollar for UV rated properties would mean that the average rates levied on agricultural assessments (excluding minimums) would be $10,249. The average mining assessment (excluding minimums) would be $7,290. If the mining assessments were rated using the same rate in the dollar as agricultural assessments, their average rate would only be $880, as all but four assessments would be on the minimum rate. The average exploration assessment (excluding minimums) proposed would be $1,151, but if they were rated using the same rate in the dollar as agricultural assessments, their average rate would be $815, as all assessments would be on the higher minimum rate of $815. Differential rating allows Council to maintain a degree of parity between rates levied on all unimproved value (UV) assessments within the Shire of Coorow rate base whilst providing income annually to allow for the service requirements of all property owners. One of the reasons for levying the higher rate in the dollar is the greater number of truck movements on local roads generated by extractive industries such as lime sand and dolomite compared to agricultural uses. The Shire of Coorow does not charge a heavy haulage fee, nor extractive industry fees so the only income generated for the shire by these users are their municipal rates. One school of thought is that by passing on the cost of increased heavy vehicles on the road to the extractive industries, they in turn can pass them on to their customers, not all of whom are based within the Shire. It is worth noting that while both UV Agriculture and UV Mining are based on ‘Unimproved Values’ provided by the Valuer General, the Valuation of Land Act 1978 prescribes different methods of calculating each one. The unimproved valuation of land utilised for agricultural purposes is the capital amount that the property (not including improvements) might reasonably be expected to realize upon sale. The unimproved valuation of land used for mining tenements is calculated on the annual rent per hectare times a factor, the amount of which depends on the number of hectares and type of lease held.


The average valuation of agricultural assessments is $626,192, whereas the average mining assessment valuation is $25,279 and exploration assessment is $5,827. The UV revaluations have yet to be received for 2020/2021, so accurate modelling can’t be carried out at this time. Modelling has instead been carried out based on the current valuations and is attached for information. If a significant change in UV valuations occurs, a second report will be prepared for Council to consider applying for amended differential rates to achieve a 0% overall rates increase. The below table shows the differential rates adopted by the Shire of Coorow and its neighbouring Shires for 2019/20.

General Rate Carnamah Coorow Dandaragan Perenjori General GRV 0.15485 0.127723 0.080156 0.082712 GRV - Mining 0.30970 0.082712 GRV - Rural 0.15485 UV – Agriculture 0.01858 0.015678 0.007115 0.01900 UV – Mining 0.01858 0.168627 0.007115 0.34255 UV – Exploration 0.110295 0.25500 Minimum Rate General GRV 770 815 947 349 Lesser GRV 715 GRV - Mining 770 349 GRV - Rural 380 UV - Agriculture 770 815 894 349 UV - Mining 770 815 894 349 UV – Exploration 300 349 Lesser UV

STAKEHOLDER ENGAGEMENT: If the officer recommendation is adopted, letters will be written to all owners of Mining and Mining Exploration tenements and advertising carried out, calling for submissions for a minimum of 21 days. FINANCIAL / RESOURCE IMPLICATIONS: The method and level of rating adopted by Council will have a significant impact on the draft 2020/2021 budget and have a cumulative effect on future budgets. The recommended rates in the dollar are based on an overall rates increase of 0%. Every 1% rates increase equates for an additional $33,464 in revenue in the first year, and over a ten year period compounds to a minimum of $334,640. A copy of the current version of the draft 2020/2021 Budget is attached in support of the 0% increase.


STATUTORY ENVIRONMENT: Local Government Act 1995 Part 6 — Financial management, Division 2 — Annual budget, Subdivision 2 — Categories of rates and service charges POLICY IMPLICATIONS: There are no policy implications. STRATEGIC IMPLICATIONS: The current Shire of Coorow Long Term Financial Plan included an overall rate increase of CPI + 2% in 2020/2021 and each year following that, but does not specify the make up of the rates. According to current Treasury Forecasts, the estimated CPI for Perth in 2020/2021 is 2.25%. If there is no overall rates or fees/charges increase this year, the difference in 2020/2021 will be ($129,983), however the accumulative impact on the long term financial plan of CPI only increases each following year will be ($4,066,773) by 2028/2029. A significant number of capital projects will need to be either cut or deferred from the Long Term Financial Plan if Council decides to reduce future rates increases to less than that previously proposed. RISK IMPLICATION: If Council does not make a decision at this Council meeting, the adoption of the budget may be delayed which will impact on the capital works program and cash flows for 2020/2021. The Deputy Chief Executive Officer’s employment contract expires on 2 August 2020. There is a risk that the Shire may not have a suitable replacement in time to finalise the budget if adoption is delayed. OFFICER RECOMMENDATION: RESOLUTION: 2020/026 Moved: Cr Peck Seconded: Cr Jack That the Shire:

1. Advertise its intention, in accordance with Section 6.36 of the Local

Government Act 1995 to adopt the following rates in the dollar and minimum rates for the differential rating categories specified for the 2020/2021 financial year, and if no submissions are received, that Ministerial approval be requested.

RATE CATEGORY

BASIS 2020/2021 RATE

(cents in

2020/2021 MINIMUM

2020/2021 Average Rates

2019/2020 Average

Rates


the dollar) (ex minimum)

(ex minimum)

Agriculture UV 1.5680 $815 10,249 10,194 Mining UV 16.7291 $815 7,290 7,348 Exploration UV 11.0295 $300 1,151 1,151

2. State its objectives and reasons in levying differential rates as:

“The objective of Council’s Differential Unimproved Value Rating is to ensure that rates are levied equitably on Agricultural, Mining and Exploration Properties in the Shire of Coorow and for each land user to make a reasonable contribution to road maintenance. Reasons for levying UV – Agriculture Rate The different methods required to calculate the UV for agricultural, mining and exploration properties means that agricultural assessments have a much higher value than mining and exploration ones. The average valuation for agricultural properties is $626,192. Agricultural property values are based on what the land could be sold for, whereas mining and exploration assessments are based on their annual rental value, multiplied by a factor which is determined by their size. Properties with an agricultural use therefore have a much higher unimproved value. Under the current valuation regime, the only way fair way that agricultural properties can be required to contribute to the services they receive and the maintenance of the road network is for them to be on a much lower rate in the dollar than mining and exploration properties. The proposed differential rates in the dollar for UV rated properties would mean that the average rates levied on agricultural assessments (excluding minimums) would be $10,249, which is still higher than the average mining and exploration assessments (excluding minimums) of $7,290 and $1,151 respectively. Reasons for levying UV – Mining Rate The different methods required to calculate the UV for agricultural, mining and exploration properties means that mining and exploration assessments have a much lower value than agricultural ones. Agricultural property values are based on what the land could be sold for, whereas mining and exploration assessments are based on their annual rental value, multiplied by a factor which is determined by their size. Properties with a mining use therefore have a much lower unimproved value than agricultural uses. The average valuation for mining properties is $25,279.


Extractive industries such as lime sand and dolomite generate a significant volume of heavy vehicle traffic on local roads, much more than a property used for agricultural or exploration purposes, therefore costing the Shire a lot more in road maintenance and renewal. The Shire of Coorow does not charge heavy haulage fees, or extractive industry fees. This means that under the current valuation regime, the only way that mining properties can fairly be required to contribute to the maintenance of the road network is for them to be on a much higher rate in the dollar than agricultural properties. The proposed differential rates in the dollar for UV rated properties would mean that the average mining assessment (excluding minimums) would be $7,290. If the mining assessments were rated using the same rate in the dollar as agricultural assessments, their average rate would only be $880, as all but four assessments would be on the minimum rate. Differential rating allows Council to maintain a degree of parity between rates levied on all unimproved value (UV) assessments within the Shire of Coorow rate base whilst providing income annually to allow for the service requirements of all property owners. Reasons for levying UV – Exploration Rate The different methods required to calculate the UV for agricultural, mining and exploration properties means that mining and exploration assessments have a much lower value than agricultural ones. Agricultural property values are based on what the land could be sold for, whereas mining and exploration assessments are based on their annual rental value, multiplied by a factor which is determined by their size. Properties with an exploration use therefore have a much lower unimproved value than agricultural uses. The average valuation for exploration properties is $5,827. Exploration activities rarely generate a significant volume of heavy vehicle traffic on local roads, much less than a property used for agricultural or mining purposes, therefore costing the Shire very little in road maintenance and renewal. There is still a cost in administering these types of assessments however, so a minimum rate of $300 is proposed to cover administration costs. The lowest possible rate in the dollar has been proposed for this category which would result in less than 50% of properties being on this minimum rate. The proposed differential rates in the dollar for UV rated properties would mean that the average exploration assessment (excluding minimums) would be $1,151. If the exploration assessments were rated using the same rate in the dollar as agricultural assessments, their average rate would be $815 as they


would all be on the minimum rate. Differential rating allows Council to maintain a degree of parity between rates levied on all unimproved value (UV) assessments within the Shire of Coorow rate base whilst providing income annually to allow for the service requirements of all property owners. Differential General Rate




To compensate for the much higher unimproved value of agricultural assessments compared to mining assessments

UV – Mining Properties with a land use associated with mining leases/tenements


To compensate for the much lower unimproved value of mining assessments compared to agricultural assessments and high impact on road maintenance requirements

UV – Exploration



To compensate for the much lower unimproved value of exploration assessments compared to agricultural assessments and low impact on road maintenance requirements

Differential Minimum Rate






UV – Mining Properties with a land use associated with a mining lease/tenement

This rate is as close to the other minimum rates as legislation will allow

This rate ensures that less than 50% of assessments in this category are on the minimum rate

UV – Exploration


To cover basis costs of administering a rate assessment.

This rate is reflective of the lowest minimum rate considered appropriate to cover administrative costs.

3. Prepare the 2020/2021 annual Budget incorporating a 0% rate increase, noting

that the increase is less than the 4% projected in the Long Term Financial Plan as a result of a request by the Premier of Western Australia for local governments to freeze all rates and charges because of the economic impact of the Covid 19 pandemic.

4. Confirms that it has reviewed its expenditure and considered efficiency measures as part of its budget deliberations including the removal of a discount on rates and the reduction in a number of operating accounts including: • valuation expenses • Councillor training • members printing & stationary • donations to community groups • banners in the Terrace • audit fees • aged units maintenance • other house building maintenance • town halls & public building maintenance • swimming pool maintenance/operations • caravan park building maintenance

5. Confirms that the following additional capital expenditure has been removed or

deferred to achieve a 0% rates rise as requested by the State Premier:


• The Lakes Road Footpath • Leeman Foreshore Redevelopment

Transfers to Building and Tourist Infrastructure Reserves CARRIED 6/0

Absolute Majority


11.3.4 ST JOHN AMBULANCE SHED DOOR Reporting Officer: Deputy Chief Executive Officer Responsible Executive: Acting Chief Executive Officer File Reference: ADM0187 – Community Relations Service Provision,

Ambulance Services Disclosure of Interest: Nil Attachments: Nil Voting Requirements: Absolute Majority ____________________________________________________________________ Council Role:


REPORT PURPOSE: To consider a budget amendment to replace a second roller door at the St John Ambulance Shed in Leeman. BACKGROUND: St John Ambulance lease a shed from the Shire of Coorow located at Lot 308 Dee Street Leeman under a peppercorn arrangement. The Shire does not currently budget for maintenance on this building, not does it include the building as one of its assets. COMMENT: The Shire replaced another door of the ambulance shed in 2018 at a cost of $3,454.40 plus GST. The Leeman Sub Centre of the St Johns Ambulance are now asking the Shire to replace a second door which is used wash the ambulance, provide alternative access to the shed and access to a back patio. They have provided a quotation of $3,485 plus GST. STAKEHOLDER ENGAGEMENT: Nil FINANCIAL / RESOURCE IMPLICATIONS: The Shire does not budget to maintain either Ambulance Shed, so if the request was to be favourably considered, a budget amendment could be done to reduce the Shire’s donations budget accordingly. The Shire currently has $13,353 left in the donations budget.


STATUTORY ENVIRONMENT: Local Government Act 1995 Section 6.8. Expenditure from municipal fund not included in annual budget Under the terms of the lease with St Johns Ambulance, the tenant is responsible for maintaining the building. POLICY IMPLICATIONS: There are no known policy implications STRATEGIC IMPLICATIONS: The three Ambulance buildings within the Shire have not be included on the Shire’s Asset Register, Asset Management Plan or Long Term Financial Plan. RISK IMPLICATION: There is a risk that by agreeing to replace the door, it will raise the expectations of St Johns Ambulance that the Shire will to continue to pay maintenance costs on the three Ambulance Sheds. OFFICER RECOMMENDATION: RESOLUTION: 2020/026 Moved: Cr Peck Seconded: Cr Jack That the 2020/2021 budget be amended to create a new Job BM066 (St Johns Ambulance Shed Leeman Maintenance) under general ledger number 2070789 (OTHHEALTH – Medical Centre Building Maintenance) with a budget of $3,485 and decrease general ledger number 2040129 (MEMBERS – Donations to Community Groups) by $3,485.

CARRIED 6/0

Simple Majority

12. QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN:

13. URGENT BUSINESS APPROVED BY THE PERSON PRESIDING

OR BY DECISION:


14. MATTERS BEHIND CLOSED DOORS:

PROCEDURAL RESOLUTION: 2020/028 Moved: Cr Peck Seconded: Jack That Council goes behind closed doors for item 14.1


DCEO & MWS left the meeting at 4.05 PROCEDURAL RESOLUTION: 2020/029 Moved: Cr Peck Seconded: Cr Girando That Council comes from behind closed doors for item 14.1



14.1. MANAGER WORKS & SERVICES CONTRACT OF EMPLOYMENT Reporting Officer: Acting Chief Executive Officer Responsible Executive: Acting Chief Executive Officer File Reference: ADM0443 Disclosure of Interest: Nil Attachments: Confidential (under separate cover) Voting Requirements: Simple Majority ____________________________________________________________________ COUNCIL ROLE


REPORT PURPOSE: To endorse the recommendation of the Acting Chief Executive Officer to appoint Mr Kelvin Bean to the position of Manager Works & Services for a contract period of three years. OFFICER RECOMMENDATION: RESOLUTION: 2020/030 Moved: Cr Muller Seconded: Cr Oakes That Council endorse the recommendations of the Acting Chief Executive Officer to appoint Mr Kelvin Bean to the position Manager of Works & Services for a contract period of three years commencing on the 17 April 2020 and agree to the appending of the Council seal.



15. DATE OF NEXT MEETING:

15.1 ORDINARY MEETING OF COUNCIL

Ordinary Meeting Next meeting of Council will be held on Wednesday 20 May 2020 electronically.

16. CLOSURE:

There being no further business the President, Cr Girando closed the meeting at 5.23 pm


minutes · minutes for the . ordinary meeting . of council. held on . wednesday 15 april 2020 ....

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