City of Bunbury Agenda Macros and AutoText and Minutes...Notice of Special Meeting and Agenda 31 July 2013 To adopt the City of Bunbury Workforce Development Plan, Long Term Financial

City of Bunbury 4 Stephen Street

Bunbury WA 6230 Western Australia

Correspondence to: Post Office Box 21 Bunbury WA 6231

Telephone: (08) 9792 7000 ◌ Facsimile: (08) 9792 7184 ◌ TTY: (08) 9792 7370 ◌ www.bunbury.wa.gov.au

Bunbury City Council Notice of Special Meeting and Agenda 31 July 2013

To adopt the City of Bunbury Workforce Development Plan, Long Term Financial Plan, Corporate Business Plan and the 2013/14 Budget

Table of Contents

Item No Subject Page

1. Declaration of Opening by the Mayor ........................................................................ 1

2. Record of Attendance, Apologies and Leave of Absence ......................................... 1

3. Public Question Time ................................................................................................. 2

4. Questions on Notice from Council Members .............................................................. 2

5. Declarations of Interest Under the Local Government Act 1995 ................................ 2

6. Purpose of the Meeting ............................................................................................. 2

6.1 Workforce Plan 2013-2017 ............................................................................. 3

6.2 Adoption of the Long Term Financial Plan 2012/13 – 2012/22 ....................... 5

6.3 Adoption of the Corporate Business Plan 2013/14 – 2016/17 ........................ 9

6.4 Adoption of the 2013/14 Budget ................................................................... 12

7. Close of Meeting ...................................................................................................... 22

Appendices 1 – 3 ............................................................................................................... 23

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Bunbury City Council Notice of Special Council Meeting

TO: His Worship the Mayor and Councillors A Special Meeting of the Bunbury City Council to adopt the City of Bunbury Workforce Development Plan, Long Term Financial Plan, Corporate Business Plan and the 2013/14 Budget will be held in the Council Chambers, City of Bunbury Administration Building, 4 Stephen Street, Bunbury on Wednesday, 31 July 2013 at 6.00pm.

Andrew Brien Chief Executive Officer (Date of Issue: 26/07/2013)

Agenda 31 July 2013

NOTE: The recommendations contained in this document are not final and are subject to adoption, amendment (or otherwise) at the meeting. Council Members: His Worship the Mayor, Mr D Smith – Presiding Member Deputy Mayor - Councillor S Craddock Councillor J Jones Councillor D Prosser Councillor A Leigh Councillor N McNeill Councillor M Steck Councillor R Slater Councillor K Steele Councillor B Kelly Councillor M Cook Councillor S Morris 1. Declaration of Opening by the Mayor 2. Record of Attendance, Apologies and Leave of Absence

31 July 2013 Special Council Meeting Agenda

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3. Public Question Time

In accordance with Reg. 7(4)(a) of the Local Government (Administration) Regulations 1996, members of the public in attendance at the meeting may stand, state aloud their name and address, and ask a question in relation to any matter relating to the purpose of the Special Council Meeting.

4. Questions on Notice from Council Members

5. Declarations of Interest Under the Local Government Act 1995

Members should fill in Disclosure of Interest forms for items in which they have a financial, proximity or impartiality interest and forward these to the Mayor before the meeting commences.

6. Purpose of the Meeting

The purpose of the Meeting is to adopt the:

1. Workforce Development Plan 2013 - 2017

2. Long Term Financial Plan 2012/13 – 2021/22

3. Corporate Business Plan 2013/14 – 2016/17

4. 2013/14 Annual Budget

- To consider submissions received following the advertising of the City's proposed Differential General Rates and Minimum Rates for the 2013/14 Financial Year.

- To adopt the 'Rate in the Dollar' and Minimum Rate for Differential and Specified Area Rates that Council will levy on property Gross Rental Valuations.

- To adopt proposed charges for refuse collection and waste minimisation.

- To adopt proposed fees and charges for other general City services.

- To adopt Council's 2013/14 Budget.


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6.1 Workforce Plan 2013-2017

Applicant/Proponent: Internal Report Author: Aileen Clemens, Manager Human Resources Executive: Andrew Brien, Chief Executive Officer Attachments: Under Separate Cover

Summary At the ordinary meeting of Council held 2 July 2013, Council resolved as follows:

“Council Decision 191/13

1. That in accordance with clause 11.1(b) of the Council Standing Orders, that debate be adjourned until the Special Meeting scheduled for Wednesday 31 July 2013.

2. That the CEO provides a summary of proposed amendments made to the draft Plan prior to the Special Meeting.”

The updated Workforce Plan was circulated to Elected Members under separate cover Thursday 18 July 2013. The purpose of this report is for Council to consider endorsing the City of Bunbury Workforce Plan (WFP), and its contents. The WFP has been developed to ensure that the City is well-placed in terms of the human resourcing requirements to ensure the effective delivery of the Council’s Strategic Community Plan. The Workforce Plan is underpinned by Corporate Guidelines and aims to deliver the outcomes in a manner consistent with the values of Council. The Council will provide a strategic approach to the management of its people through this plan. The City of Bunbury aims to establish and maintain a professional approach that:

- Aligns the plan strategies with the established strategic direction of the City

- Confirms our position as a leader in local government and an employer of choice

- Incorporates the parameters and context of HRM for all employees

- Ensures our staff have a quality work life and are able to contribute to the development of the organisation

- Builds a safety culture dedicated to employee wellbeing and the prevention of injuries and ill health for employees and volunteers, ensuring all can operate in a safe and healthy environment whilst at work

- Maintains an appropriate permanent workforce to ensure effective service delivery, which is adequately supplemented through the use of casual and contract labour to meet peaks and troughs of seasonal demands and capital works programs

Note: Part A of the Executive recommendation needs to be carried before further

discussion of this matter can be undertaken.


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Executive Recommendation Part A Pursuant clause 11.6 of the City of Bunbury Standing Orders 2012, the debate on this matter be resumed Part B That Council endorse the City of Bunbury Workforce Plan 2013-17. Background The WPF is one of the key elements of the City of Bunbury’s Integrated Strategic Planning framework, and is focused on developing the workforce required to deliver the organisation’s strategic priorities, as articulated in the Strategic Community Plan: Bunbury 2030, and four-year Corporate Business Plan. This WFP focuses on strategies that will be adopted over the next four (4) years, and is supplemented by a one (1) year plan that focuses on specific projects and tasks that will be delivered in the short-term in order to commence Council’s journey towards the four (4) year strategies identified. Our priority is to build an organisational culture that continues to attract and retain staff, whilst ensuring that we are cognisant of the current and projected financial constraints and the overall operational context. With a high-performing culture Council will strengthen its relationship with the community and other partners to deliver services of a high standard both effectively and efficiently, and in a courteous manner. Legislative Compliance The newly legislated Integrated Planning and Reporting framework (IPRF) requires local governments to have an adopted WFP by 30 June 2013 (regulation 19C(1) of the Local Government (Administration) Regulations 1996). Officer Comments There are a number of Workforce Strategies contained in the document as well as an implementation plan on how these strategies will be actioned Analysis of Financial and Budget Implications Any projects identified through workforce planning requiring financial funding will be included in the City’s annual Budget review and adoption process for consideration. Community Consultation Community Consultation was not required for the development of the WFP. Councillor/Officer Consultation The draft Workforce Plan has been reviewed by the Executive Leadership Team, and has also been briefed with Council at the briefing session held Tuesday 28 May 2013. This matter was the subject of a previous agenda item at the Council (Standing) Committee meeting held 25 June 2013


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6.2 Adoption of the Long Term Financial Plan 2012/13 – 2012/22

Applicant/Proponent: Internal Report Author: Greg Golinski, Manager Corporate Performance Executive: Wayne Wright, Director Corporate Services Attachments: Under Separate Cover

Summary The purpose of this report is for Council to consider the adoption of the City’s Long Term Financial Plan (LTFP). Executive Recommendation That Council adopt the draft Long Term Financial Plan 2012/13 – 2021/22 as presented. Background In February 2009, the then Minister for Local Government announced a package of local government reform strategies. These strategies were aimed at achieving greater capacity for local governments to better plan, manage and deliver services to their communities with a focus on social, environmental and economic sustainability. The Integrated Planning and Reporting Framework (IPRF), which was a recommendation from the reform strategies, was legislated in late 2011 to allow local governments to plan for the future and to equip their organisations to respond to short, medium and long term community requirements. To meet compliance with the IPRF the City is required to develop a suite of plans. This process commenced with the development and subsequent adoption by Council of the City’s Strategic Community Plan (SCP). The activation of the SCP requires the development of a Corporate Business Plan (CBP), LTFP, Workforce Plan and Asset Management Plans. Council and staff have been involved in a number of briefing sessions to discuss the content of the LTFP, working towards ensuring the plan is fully supported by both Council and Executive Management. A total of nine (9) workshops/briefings have been held in this regard as follows:

Date Details 18 December 2012 Special workshop for the LTFP, CBP and 13/14 Budget

4 February 2013 Special workshop for the LTFP, CBP and 13/14 Budget 6 March 2013 Special workshop for the LTFP, CBP and 13/14 Budget 3 April 2013 Special workshop for the LTFP, CBP and 13/14 Budget

15 April 2013 Special workshop for the LTFP, CBP and 13/14 Budget 18 June 2013 LTFP, CBP and 13/14 Budget discusses at Briefing Session 24 June 2013 Special workshop for the LTFP, CBP and 13/14 Budget 1 July 2013 Special workshop for the LTFP, CBP and 13/14 Budget

24 July 2013 Special workshop for the LTFP, CBP and 13/14 Budget The plan details our resourcing capabilities for operational services and major projects, maintenance of community assets and predicted long term financial expectations.


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Council Policy Compliance There is no Council Policy applicable to this item. Legislative Compliance Sections 5.56(1) and (2) of the Local Government Act 1995 require local government to “plan for the future” of the district by developing plans in accordance with the regulations. Section 19DA of the Local Government (Administration) Regulations 1996 outlines what is required of a CBP, and the requirement to develop Asset Management, Workforce, and Long Term Financial plans as informing documents. Officer Comments The LTFP is a dynamic document that analyses financial trends over a ten year period based on a range of assumptions and provides the City with information to assess resourcing requirements to achieve its strategic objectives and to ensure its future financial viability. The development of the LTFP began with reviewing and establishing base operating budgets, followed by giving consideration to a rating strategy, loan borrowings, and the content of asset management plans. The LTFP provides a financial summary of action and project forecast income and expenditure grouped into ongoing operating, new operating initiatives and capital works for the next ten years. The 2012-13 forecasts have been used to prepare the Draft Budget for 2013/14. The remaining years provide indicative estimates for future resource allocations. As a result of anticipated rapid population growth and increased demand for services, it is predicted that future budgets will be significantly impacted by increasing demand for services and new infrastructure. Levying rate increases at or below CPI is unstainable in the long term and the LTFP has been developed based on rate increases of CPI plus 3.25% for years 1-10. In addition the rate base is anticipated to grow by 1% per annum until 2022. Adopting a balanced operating budget each year will not lead to financial sustainability, and as such we will target to achieve an increasing budget surplus each year from 2016-17 so that an estimated surplus of $4.28 million will be achieved by 2021/22. The City has moderate levels of debt and proposes to use debt funding in the future for capital works projects that will deliver economic benefits to future generations. Debt is proposed to be used to partly fund the extension of our new regional entertainment centre ($4.2 million in 2012/13) and the LTFP contains new borrowings of $3 million per annum for years 1-10. Within the City of Bunbury, our adopted SCP contains four Goals, underpinned by 22 Objectives. In an operational context, each Department within the City is comprised of a number of predefined Services that are delivered, to which every project is linked. In a strategic context, each Objective within the SCP comprises a number of Strategies (detailed in the CBP), to which every project is also linked. This is represented diagrammatically below.


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Fundamentally, the City’s draft LTFP outlines a list of the operating and capital projects proposed to be undertaken by the City over the next ten years, as well as detailing how they will be funded. Within the draft LTFP, these projects are filtered by the predefined Services within each Department. The City’s draft CBP is also aligned with the draft LTFP, albeit for the next four years, with the proposed projects within the draft CBP filtered by Strategy, which facilitates a linkage back to the City’s adopted SCP. The progression/completion of each project will then enable the development of a Community Scorecard, which will be reported in each Annual Report from 2013/14 onwards. The Scorecard will detail the City’s performance against each Goal and Objective within the SCP. It is important to note that the City’s LTFP will be reviewed on an annual basis in line with the budget process for each ensuing financial year. This will ensure that the listed projects reflect current Council priorities and anticipated funding availability. Analysis of Financial and Budget Implications The financial implications of the projects contained within the draft LTFP are contained with the document itself.


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Councillor/Officer Consultation The draft LTFP was developed in consultation with all City Directorates. Councillors were also involved in the development of this document through participation in a series of nine (9) workshops/briefings between December 2012 and July 2013.


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6.3 Adoption of the Corporate Business Plan 2013/14 – 2016/17

Applicant/Proponent: Internal Report Author: Greg Golinski, Manager Corporate Performance Executive: Wayne Wright, Director Corporate Services Attachments: Under Separate Cover

Summary The purpose of this report is for Council to consider adoption of the City’s Corporate Business Plan (CBP). Executive Recommendation That Council adopt the draft Corporate Business Plan 2013/14 – 2016/17 as presented. Note: Absolute Majority Vote Required Background In February 2009, the then Minister for Local Government announced a package of local government reform strategies. These strategies were aimed at achieving greater capacity for local governments to better plan, manage and deliver services to their communities with a focus on social, environmental and economic sustainability. The Integrated Planning and Reporting Framework (IPRF), which was a recommendation from the reform strategies, was legislated in late 2011 to allow local governments to plan for the future and to equip their organisations to respond to short, medium and long term community requirements. To meet compliance with the IPRF the City is required to develop a suite of plans. This process commenced with the development and subsequent adoption by Council of the City’s Strategic Community Plan (SCP). The activation of the SCP requires the development of a CBP, Long Term Financial Plan (LTFP), Workforce Plan and Asset Management Plans. Council and staff have been involved in a number of briefing sessions to discuss the content of the CBP, working towards ensuring the plan is fully supported by both Council and Executive Management. A total of nine (9) workshops/briefings have been held in this regard as follows:

Date Details 18 December 2012 Special workshop for the LTFP, CBP and 13/14 Budget

4 February 2013 Special workshop for the LTFP, CBP and 13/14 Budget 6 March 2013 Special workshop for the LTFP, CBP and 13/14 Budget 3 April 2013 Special workshop for the LTFP, CBP and 13/14 Budget 15 April 2013 Special workshop for the LTFP, CBP and 13/14 Budget 18 June 2013 LTFP, CBP and 13/14 Budget discusses at Briefing Session 24 June 2013 Special workshop for the LTFP, CBP and 13/14 Budget 1 July 2013 Special workshop for the LTFP, CBP and 13/14 Budget 24 July 2013 Special workshop for the LTFP, CBP and 13/14 Budget


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The plan details our resourcing capabilities for operational services and major projects, maintenance of community assets and predicted long term financial expectations. Council Policy Compliance There is no Council Policy applicable Legislative Compliance Sections 5.56(1) and (2) of the Local Government Act 1995 require local government to “plan for the future” of the district by developing plans in accordance with the regulations. Section 19DA of the Local Government (Administration) Regulations 1996 outlines what is required of a CBP, and the requirement to develop Asset Management, Workforce, and Long Term Financial plans as informing documents. Officer Comments The core purpose of the CBP is to activate the Objectives outlined in the SCP. The plan identifies the priorities of the community, and details current services and proposed operating and capital projects to be undertaken by the City over the next four years. The focus within the CBP is on project delivery, and the draft plan (on pages 16 and 17) details the key capital and operating projects that the City intends on progressing over the next four years. Within the City of Bunbury, our adopted SCP contains four Goals, underpinned by 22 Objectives. In a strategic context, each Objective within the SCP comprises a number of Strategies (detailed in the CBP), to which every project is linked. This provides alignment between the two documents, and is represented diagrammatically below.


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Fundamentally, the City’s draft CBP outlines a list of the operating and capital projects proposed to be undertaken by the City over the next four (4) years, as well as detailing how they will be funded. Within the draft CBP, these projects are filtered by Strategy, which facilitates a linkage back to each Objective within the City’s adopted SCP. The progression/completion of each project will then enable the development of a Community Scorecard, which will be reported in each Annual Report from 2013/14 onwards. The Scorecard will detail the City’s performance against each Goal and Objective within the SCP. It is important to note that the City’s CBP will be reviewed on an annual basis in line with the budget process for each ensuing financial year. This will ensure that the listed projects reflect current Council priorities and anticipated funding availability. Analysis of Financial and Budget Implications The financial implications of the projects contained within the draft CBP are contained with the document itself. Councillor/Officer Consultation The draft CBP was developed in consultation with all City Directorates. Councillors were also involved in the development of this document through participation in a series of nine (9) workshops/briefings between December 2012 and July 2013.


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6.4 Adoption of the 2013/14 Budget

Applicant/Proponent: Internal Report Author: David Ransom, Manager Finance Executive: Wayne Wright, Director Corporate Services Attachments: Under Separate Cover

1. Advertising of Proposed Rate 2013/14 - Public Submissions

The Council advertised it’s proposed Differential General Rates and Minimum Rates for 2013/14 with a public submission period of twenty-two (22) days. Submissions closed 21 June 2013. One (1) submission was received and a copy issued to Councillors under separate cover. It is necessary for Council to consider the submission received prior to adoption of the Budget. Recommendation Council notes the one (1) submission received and the ratepayer be advised that their submissions was considered by Councillors prior to adoption of the 2013/14 Budget.

2. Memorandum of Imposing Differential General Rates, Minimum Rates and Specified Area Rates for 2013/14

Councillors have held eight (8) long term financial plan and budget workshops to consider the revenue and expenditure within the draft budget working papers. Recommendation 1. Council adopt the following Municipal Rates in the dollar on gross rental

valuations for the 2013/14 financial year:

1.1 Differential Rate - Rating Category (1) General

The Differential Rate on current Gross Rental Values for the 2013/14 financial year on Rating Category (1) including: land zoned Residential and land zoned other than Residential used for residential purposes as a non-conforming use, Sporting Clubs and Strata Titled Storage Units be 9.411 cents in the dollar.

1.2 Differential Rate - Rating Category (2) City Centre and Special Use

The Differential Rate on current Gross Rental Values for the 2013/14 financial year on Rating Category (2) for land zoned City Centre and Special Use be 9.568 cents in the dollar.

1.3 Differential Rate - Rating Category (3) Mixed Business

The Differential Rate on current Gross Rental Values for the 2013/14 financial year on Rating Category (3) including land zoned


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for purposes such as Mixed Business, Shopping Centre and Service Stations be 7.574 cents in the dollar.

1.4 Differential Rate – Rating Category (4) Industry and Non Residential

Vacant Land

The Differential Rate on the current Gross Rental Values for the 2013/14 financial year on Rating Category (4) being land zoned as Industrial, Non Residential Vacant Land and Rural be 7.120 cents in the dollar.

1.5 Minimum Rate

1.5.1 The Minimum Rate for rateable properties within the City of Bunbury be $939.00 for General Rating Category (1) including: Residential and land zoned other than Residential used for residential purposes as a non-conforming use, Sporting Clubs and Strata Titled Storage Units.

1.5.2 The Minimum Rate for rateable properties zoned City Centre and Special Use; Mixed Business; and Industrial and Non Residential Vacant Land Rating; Categories (2); (3) and (4) be $1,420.00.

1.6 Specified Area Rate - Grand Canals, Pelican Point

A Specified Area Rate of 1.173 cents in the dollar on the Gross Rental Valuation for all properties within the Grand Canals Pelican Point for the provision of maintaining the waterways of the development as identified on the map and additional information attached at Appendix “1”.

1.7 Specified Area Rate – Ocean Drive Underground Power

A Specified Area Rate of 0.0067 cents in the dollar on the Gross Rental Valuation for all properties within the Ocean Drive Specified Area for the provision of underground power as identified on the map and additional information attached at Appendix “2”.

1.8 Specified Area Rate – Stirling Street Streetscape

A Specified Area Rate of 1.659 cents in the dollar on the Gross Rental Valuation for all properties within the Stirling Street Streetscape Project Area for the purpose of part funding the redevelopment of streetscape improvements as identified on the map and additional information attached at Appendix “3”.

Note: Absolute Majority Vote Required


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3. Refuse Collection and Waste Minimisation Charges 2013/14 Budget

The Refuse Collection and Waste Minimisation charges include:

- Collection of domestic refuse

- Provision of two (2) annual kerbside collections each of green waste and hard waste to residential properties.

- Kerbside collection of recyclables

- Collection of organic waste Recommendation 1. The following Refuse Collection and Waste Minimisation charges for the

City of Bunbury (including two (2) hard waste and two (2) green waste collections for residential properties) be adopted for the 2013/14 financial year:

1.1 Residential General Refuse Services

1.1.1 Residential properties where fortnightly collections of general refuse and hard waste includes provision of a 240 litre mobile garbage bin: $98.00 per annum.

1.1.2 Residential properties where fortnightly collection of general refuse and hard waste includes provision of a 140 litre mobile garbage bin: $86.00 per annum.

1.1.3 Residential properties where weekly collection of general refuse and hard waste includes provision of a 240 litre mobile garbage bin: $203.00 per annum.

1.2 Residential Recycling Services

1.2.1 Residential properties where fortnightly collection of recycling refuse and green waste includes provision of a 240 litre mobile garbage bin: $88.00 per annum.



1.3 Residential Organic Waste Services

1.3.1 Residential properties where collection of organic waste includes provision of a 240 litre mobile garbage bin: First Service per fortnight $95.00 per annum


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Second and subsequent services per fortnight $90.00 per annum.

1.3.2 Residential properties where collection of organic waste includes provision of a 140 litre mobile garbage bin: $80.00 per annum.

1.4 Non-Residential General Refuse Services

1.4.1 All non-residential properties (excluding commercial and

industrial properties) where refuse collection includes provision of a 240 litre mobile garbage bin: $196.00 per annum for each service per week.

1.4.2 All non-residential properties (excluding commercial and industrial properties) where refuse collection includes provision of a 140 litre mobile garbage bin: $170.00 per annum for each service per week.

1.5 Non-Residential Recycling Services

All non-residential properties (excluding commercial and industrial properties) where recycling collection includes provision of a 240 litre mobile garbage bin: $96.00 per annum for each service per fortnight.

1.6 Non-Residential Organic Waste Service

All non-residential properties (excluding commercial and industrial properties) where weekly organic waste collection includes provision of a 240 litre mobile garbage bin: $192.00 per annum for each service per week.

1.7 Commercial and Industrial Properties Refuse Collection

All commercial and industrial properties where collection of refuse includes provision of a 240 litre mobile garbage bin service will have the following refuse collection charges:

First service per week $244.00 per annum Second and subsequent services per week $196.00 per annum

1.8 Commercial and Industrial Properties Recycling Services

All commercial and industrial properties where collection of recycling includes provision of a 240 litre mobile garbage bin service will have the following recycling collection charges:

Fortnightly service $96.00 per annum Weekly service $192.00 per annum Twice weekly service $384.00 per annum

1.9 Commercial and Industrial Properties Organic Services

All commercial and industrial properties where collection of organic includes provision of a 240 litre mobile garbage bin service will have the following organic collection charges:

Weekly service $192.00 per annum


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Twice weekly service $384.00 per annum Three times per week $576.00 per annum

1.10 Commercial and Industrial Properties Bulk Service

1.10.1 All commercial and industrial properties where refuse collection includes provision of a 1,100 litre mobile garbage bin will have the following refuse collection charges: One (1) service per week $875.00 per annum

1.10.2 All commercial and industrial properties where collection of recycling includes provision of a 1,100 litre mobile garbage bin will have the following recycling collection charges: Fortnightly service $437.50 per annum Weekly service $875.00 per annum

NOTE: Absolute Majority Vote Required

4. Proposed Loan Borrowings and Financing Arrangements 2013/14

Details of the purpose and financial arrangements are included in the Draft Budget circulated under separate cover:

a) Loan Borrowings

Loan No. Purpose Amount($) 362 Bunbury Regional Entertainment Centre

Extension

$4,323,675 365 Hay Park South Multi Purpose Sports

Pavilion

$1,380,615 367 Glen Iris Skate Park $254,752 368 Road Works $26,067

Total Loan Borrowings: $5,985,109

b) Municipal Fund Overdraft Limit - $2,500,000

An overdraft provision of $2,500,000 financed by the Commonwealth Bank to provide working capital if required.

Recommendation 1. Council borrow Loan Funds of $5,985,109 during the 2013/14 financial year

as detailed in the Draft Budget 2013/14 for Loan No’s 362, 365, 367 and 368.

2. Council endorse the Municipal Fund having an Overdraft Limit of $2,500,000.



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5. Adoption of the 2013/14 Budget

A copy of the Draft Budget 2013/14 has been circulated under separate cover. Councillors developed the Draft Budget at eight (8) Long Term and Financial Plan and Budget Workshops held during December 2012 to July 2013. Recommendation Budgets for the following funds for the year ending 30 June 2014, be adopted: 1. Municipal Fund and the following Reserve Funds:

1.1 Asset Management/Renewal Reserve

1.2 Building Restoration and Maintenance Reserve

1.3 Canal Management Reserve

1.4 CBD Contribution Parking Reserve

1.5 Central Traffic Area Reserve (2)

1.6 Central Traffic Area Reserve (3)

1.7 City Arts Collection Reserve

1.8 City of Bunbury General Parking Reserve

1.9 College Grove Subdivision Reserve

1.10 Data Centre Equipment Replacement Program Reserve

1.11 Depot Construction Reserve

1.12 Disaster Relief Fund (City of Bunbury)

1.13 Dual-Use Path Upgrade Contributions Reserve

1.14 Environmental Reserve

1.15 Hay Park Regional Athletics Track Reserve

1.16 Heritage Building (Paisley Centre) Maintenance Reserve

1.17 Land Subdivision and Development Reserve

1.18 Marlston Hill Landscape Reserve (2)

1.19 Marlston Hill TV Aerial Network Reserve

1.20 Meat Inspection Reserve

1.21 Ocean Drive Underground Power Reserve

1.22 Plant and Equipment Reserve

1.23 Recreation Development Reserve

1.24 Refuse Collection and Waste Minimisation Reserve

1.25 Regional Museum Reserve

1.26 Road Upgrade Contributions Reserve

1.27 Town Planning Act Section 20A Reserve


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1.28 Town Planning Scheme Land Acquisition and Compensation Reserve

1.29 Townscape Improvements Reserve

2. Trust Fund


6. Due Dates for Payment of Rates and Rubbish Collection Charges 2013/14 The adoption of the Budget must record the due dates for payment of Rates and Rubbish Collection charges for the four-payment instalment plan. These dates are now referred to Council for endorsement. Rate Notices will be issued on 16 August 2013. Under the Local Government Act 1995, the City is required to provide at least 35 days notice to ratepayers of the 1st instalment date for payment of rates and not less than two (2) months between subsequent instalment dates. A Budget and Rates Information brochure will be included with every rate notice, together with a separate brochure produced by the Department of Fire and Emergency Services explaining the Emergency Services Levy (ESL). Recommendation The due dates for payment of Rates and Rubbish Collection Charges for 2013/14 be as follows:

1. First Instalment Payment (and 'Payment in Full'): 20 September 2013

2. Second Instalment: 20 November 2013

3. Third Instalment: 20 January 2014

4. Fourth Instalment: 20 March 2014


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7. Administration and Interest Fees on Rates, Rubbish, Waste Minimisation and

General Debtor Collection Charges 2013/14 The Rates and Charges proposed are as outlined in the recommendation below. Recommendation The following Rates and Charges are proposed as allowed under the Local Government Act 1995, to provide for Administration and Interest Charges on Rating, Rubbish, Waste Minimisation and General Debtor Collection charges during the 2013/14 financial year: 1. Instalment Plan Administration Fee

An Instalment Plan Administration fee of $6.00 for the second and each subsequent instalment notice issued will apply for rates and rubbish collection charges.

2. “Ad hoc” Payment Plan Fee

The recommended $30.00 Administration Charge per assessment applies on approved payment plans for rates and rubbish accounts which fall outside the standard four instalments program.

3. Late Payment Interest Charge

A charge on outstanding rates and rubbish collection accounts (including amounts owed on ad hoc Payment Plans) of 11% will be calculated daily at 0.0301% on a simple interest basis for the number of days from the account due date until the day prior to the day on which the payment is received.

4. Instalment Plan Interest Charge

An interest rate of 5.5% will be calculated on a daily basis at 0.0151% by simple interest basis from the due date of the first instalment as shown on the rate notice to the due date of each respective instalment.

5. Late Payment Interest Charge (Excluding Rates and Charges)

A charge of 11% interest, calculated on a simple interest basis for the number of days outstanding, may apply on unpaid debts (other than rates and rubbish collection charges) outstanding 35 days from the date of invoices raised after 1 July 2013.

6. Waivers

In respect to the Late Payment Interest Charge on rates and charges, the method of calculating the interest charge is on the daily balance outstanding.

There are instances where a small balance remains on the property assessment. This may have occurred due to a delay in the receipt of mail payments or monies from property settlements etc., and additional daily interest has accumulated.


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Amounts outstanding of $5.00 and under will be waived, as it is not considered cost effective or equitable to recover from the new property owner. Estimated loss of revenue from this waiver is $2,400.

7. Concessions

Storage Units A concession of $413.70 per strata titled storage unit, totalling $43,025, will be granted to strata titled storage units. This concession is to be applied to 104 storage units.

The Town Planning Scheme No 7 defines “Storage Unit” in the following terms “premises used for the storage of goods, equipment, plant or materials”. Further to this definition, the following criteria must be met: • Strata titled; • Zoned “Industrial” under Town Planning Scheme No. 7; • Have no ablutions (waste water system) connected; • Maximum area of 75m²

TPS Heritage Rates Following application a concession of 30% (up to a maximum of $1,000) on the general rates payable will be provided to eligible properties for a period of five years where works relating to the conservation of the cultural heritage significance of the property has been undertaken in accordance with the City’s Local Planning Policy – Rate Concession for Heritage Places. Estimated concession in 2013/14 is $7,836.


8. Schedule of Fees and Charges 2013/14 Budget

The Schedule of proposed Fees and Charges for the 2013/14 financial year forms part of the 2013/14 Budget which has been circulated to Council under separate cover. Recommendation The Schedule of Fees and Charges (which forms part of the 2013/14 Budget) be adopted effective from 1 August 2013. Note: Absolute Majority Vote Required

9. Elected Members Meeting Attendance Fees and Allowances

The Mayor, Deputy Mayor and Councillors will receive the prescribed allowances, meeting attendance fees and communication allowance in accordance with the Local Government Act 1995 as follows:

NOTE: In relation to item 3 “Councillor and Mayoral Communications Allowance”, this payment will be paid at the end of each financial year net of the ongoing


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monthly iPad costs including plan fees and any personal usage, purchases, calls or downloads. Recommendation Council adopts the Elected Member Sitting Fees and allowances as prescribed by the Local Government (Administration) Regulations 1996 being: 1. Councillor Meeting Attendance Fee: $22,000 per annum

2. Mayoral Meeting Attendance Fee: $29,500 per annum

3. Councillor and Mayoral Communications and InformationTechnology Allowance: $3,500 per annum

4. Mayoral Allowance: $60,000 per annum.

5. Deputy Mayoral Allowance: $15,000 per annum being 25% of the Mayoral Allowance.

6. 6.1 The position of Mayor shall for the purpose of carrying out the functions of the Mayors office be entitled to receive the provision of a fully maintained Local Government owned vehicle.

6.2 In accordance with the provisions of the Local Government (Administration) Regulations 1996, Regulation 34AD all private use of the Council vehicle is to be recorded and reimbursed to Council.


10. Reporting of Material Variances in the Monthly Statement of Financial Activity

for 2013/14

The Local Government (Financial Management) Regulations require the Council to adopt (each year) a percentage or value to be used for reporting material variances in the Statement of Financial Activity. Any variance meeting these criteria will be required to have a supporting explanation in the monthly report to Council. Council last adopted the reporting variances criteria at the Special Council Meeting for the adoption of the 2012/13 Budget on 18 July 2012. Information is considered "material" if its omission, mis-statement or non-disclosure has the potential to adversely affect decisions by users of the financial report or affect the discharge of accountability by management or Council. Recommendation A variance between actual and budget-to-date of greater than or equal to 10% and $10,000 is considered to be a material variance for reporting purposes in the Statement of Financial Activity for 2013/14.


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11. For Councillor Information

Council will raise a total of $30.4M in Differential General Rates, Minimum Rates and Specified Area Rates in 2013/14. However under Section 6.26(2) of the Local Government Act not all properties are rateable; for example: land used for charitable purposes, a place of public worship or schools. Rates foregone on 163 properties within the City of Bunbury due to the rate exemption under the Local Government Act total $782,497. These properties are audited bi-annually to ensure their ongoing exemption status.

7. Close of Meeting

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Appendices 1 – 3

APPENDIX 1

Specified Area rate – Pelican Point – Grand Canals Page 24

Specified Area Rate – Pelican Point - Grand Canals Section 6.37(1) of the Local Government Act states the following:

Specified area rates

(1) A local government may impose a specified area rate on rateable land within a portion of its district for the purpose of meeting the cost of the provision by it of a specific work, service or facility if the local government considers that the ratepayers or residents within that area —

(a) have benefited or will benefit from; (b) have access to or will have access to; or (c) have contributed or will contribute to the need for,

that work, service or facility.

The need for the Specified Area Rate is considered by Council each year to determine that the specific works will benefit the ratepayers within the Pelican Point - Grand Canals; that they will have access to these works; and contribute to the need for these works.

Council outlines the following reasons for imposing a specified area rate on the Pelican Point precinct within the City of Bunbury:

A rate in the dollar of 1.173 cents on the current Gross Rental Values for the 2013/14 financial year for all properties with the Grand Canals Pelican Point Development for the purpose of maintaining the waterways development will apply and generate $37,682 in income.

What is the purpose of the rate?

The purpose of the rate to raise funds over a given period of time to allow for the periodic dredging, clearing and maintenance of the canal waterways.

How much is the rate yield?

These rates will raise approximately $37,682 for the 2013/14 financial year.

How is the rate calculated?

A rate of 1.173 cents in the dollar will apply on the Gross Rental Values for all properties located in the Grand Canals Specified Area. (Refer to the attached map.)

Will the rate change?

The need for the Specified Area Rate is considered by Council each year to determine that the specific works will benefit the ratepayers within the Pelican Point Grand Canals Area; that they will have access to these works; and will need to contribute to these works.

The rate at present is only indicative and is heavily dependent on the amount of sand build-up that is in a direct relationship to river flows. Direct costs are anticipated to be in the order of $300,000 per dredging which could be required every 5-7 years. The estimated Canal Management Reserves at the 30 June 2014 will be $355,072.

APPENDIX 1


How was the cost calculated?

Costs for maintenance and repair work are based on estimates obtained from companies who will be contracted to perform the necessary work on the canals.

Has this approach been used elsewhere?

Canal developments have now occurred in a number of Council’s around Australia. Many Councils use such standard options as specified area rates to ensure that the ongoing costs of repairs and maintenance are met.

APPENDIX 1


Pelican Point – Grand Canals – Specified Area Map

APPENDIX 2

Specified Area rate – Ocean Drive- Underground Power Page 27

Specified Area Rate – Ocean Drive Underground Power

Section 6.37(1) of the Local Government Act states the following:





The need for the Specified Area Rate is considered by Council each year to determine that the specific works will benefit the ratepayers within the Ocean Drive Underground Power; that they will have access to these works; and contribute to the need for these works.

Council outlines the following reasons for imposing a specified area rate on the Ocean Drive precinct within the City of Bunbury:

A rate in the dollar of 0.0067 cents on the current Gross Rental Values for the 2013/14 financial year for all properties within the Ocean Drive Specified Area for the purpose of contributing to the installation of underground power will apply and generate $13,715 in income. This will be the final year the Specified Area Rate will be required.


The rate is to raise funds to meet part loan repayments financing the placement of underground power infrastructure along Ocean Drive from Wellington Street to Hayward Street as part of the Bunbury Coastal Enhancement Project.

How much is the rate?

These rates will raise approximately $13,715 for the 2013/14 financial year.


A rate of 0.0067 cents in the dollar will apply on the Gross Rental Values for all properties located in the Ocean Drive Underground Power Specified Area. (Refer to the attached map)


The need for the Specified Area Rate is considered by Council each year to determine that the specific works will benefit the ratepayers within the Ocean Drive Underground Power Area that they will have access to these works; and will need to contribute to these works.

The rate will cease in 2013/14.

APPENDIX 2


Subject to amendments to valuations and other developments within the specified area the rate in the dollar will be adjusted from time to time to meet the fixed annual expenditure over the term of the loan.


The total cost of this project was $495,000 of which 50% will be recovered by way of this proposed specified area rate.


A number of metropolitan Councils have adopted this approach for the installation of underground power within their suburbs.

APPENDIX 2


Ocean Drive Underground Power Specified Area Map

APPENDIX 3

Specified Area rate –Stirling Street- Streetscape Page 30

Specified Area Rate – Stirling Street Streetscape

Section 6.37(1) of the Local Government Act states the following:





The need for the Specified Area Rate is considered by Council each year to determine that the specific works will benefit the ratepayers within Stirling Street Streetscape; that they will have access to these works; and contribute to the need for these works.

Council outlines the following reasons for imposing a specified area rate on the Stirling Street precinct within the City of Bunbury:

A rate in the dollar of 1.659 cents on the current Gross Rental Values for the 2013/14 financial year for all properties within the Stirling Street Streetscape Project for the purpose of part funding the redevelopment will apply and generate $38,790 in income annually for a period of 10 years. This Specified Area Rate will continue until 2015.


The rate is to raise funds to meet part loan repayments for the project of the redevelopment and rejuvenation of the streetscape of Stirling Street between Spencer Street and Turner Street including the traffic management improvements and pedestrian access.

How much is the rate yield?

The rate will raise approximately $38,790 being 50% of the loan repayments for the 2013/14 financial year. This amount will be raised annually for a period of 10 years being the term of the loan.


A rate of 1.659 cents in the dollar will apply on the Gross Rental Values for all properties located in the Stirling Street Streetscape Specified Area. (Refer to the attached map.)


The need for the Specified Area Rate is considered by Council each year to determine that the specific works will benefit the ratepayers within the Stirling Street Streetscaping Area that they will have access to these works; and will need to contribute to these works.

Subject to amendments to valuations and other commercial developments within the specified area the rate in the dollar will be adjusted from time to time to meet the fixed annual expenditure over the term of the loan.

APPENDIX 3



A fixed interest 10 year term loan was raised in 2005 for $247,500 towards the cost of the works with 50% being repaid by way of this specified area rate.


A number of Councils have adopted this approach for the funding of various types of specific projects within their suburbs.

APPENDIX 3


Stirling Street Streetscape Specified Area Map

Documents

City of Bunbury Agenda Macros and AutoText and Minutes...Notice of Special Meeting and Agenda 31 July 2013 To adopt the City of Bunbury Workforce Development Plan, Long Term Financial