MINUTES OF THE SPECIAL MEETING OF THE BAROSSA COUNCIL … · 7905 Did not include auto shut off for...

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The Barossa Council Minutes of Special Council Meeting held on Thursday 26 June 2014

MINUTES OF THE SPECIAL MEETING

OF THE BAROSSA COUNCIL held on Thursday 26 June 2014, commencing at 6.07pm

in the Council Chambers, 43-51 Tanunda Road, Nuriootpa

1.1 WELCOME Mayor Hurn declared the meeting open at 6.07pm.

1.2 MEMBERS PRESENT Mayor Hurn, Crs Bob Sloane (Deputy Mayor), Dave de Vries, Michael Seager, Richard Miller and Scotty Milne

1.3 LEAVE OF ABSENCE Cr David Lykke 1.4 APOLOGIES Cr John Angas Cr Margaret Harris Cr Bridgette Kies

MOVED Cr Miller that the apology received from Crs Angas, Harris and Kies be noted. Seconded Cr Seager CARRIED

2. CONSENSUS AGENDA 3. ADOPTION OF CONSENSUS AGENDA 3.1 ITEMS FOR EXCLUSION FROM THE CONSENSUS AGENDA Cr Milne – 2.1.1.1 Discussion Paper on the Commonwealth Home Support Program

3.3 DEBATE OF ITEMS EXCLUDED FROM THE CONSENSUS AGENDA

2.1.1.1 DISCUSSION PAPER ON THE COMMONWEALTH HOME SUPPORT PROGRAM

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MOVED Cr Milne that:

(1) The Report is received and that Council writes to the Department of Social Services to endorse the feedback provided on the Commonwealth Home Support Program Discussion Paper by the Seniors’ Collaborative Action Project (SCAP) and items 2 to 5 inclusive of section 3.2 of this report; and

(2) Council investigates the feasibility of tendering as a My Aged Care Regional

Assessment Organisation, as predicated in the discussion paper on the Commonwealth Home Support Program.

Seconded Cr Seager CARRIED

1. Back ground Feedback is being requested on the new Commonwealth Home Support Program (CHSP) from the Department of Social Services, which will commence from 1 July 2015. The new Program represents a core component of the aged care reform plan, and will establish the basic tier of the end-to-end aged care system envisaged by the reforms. Feedback is required by 30 June 2014 and is being sourced from aged care clients, their carers and advocates, aged care providers, workers, health professionals and academics. This feedback will inform the development of the Commonwealth Home Support Program Manual and this manual will provide greater detail about the program, and inform on government and service provider responsibilities under the program. The Barossa Council is a provider of Home Assist services and currently auspices the Home and Community Care (HACC) Collaborative Project which provides sector support and development to all aged care organisations servicing the Barossa, Gawler, Light and Mallala council areas.

2. Key points

In May 2014 the Commonwealth released a discussion paper – ‘Key directions for the Commonwealth Home Support Programme (basic support for older people living at home).

Brings together various programmes, including HACC, under the New Commonwealth Home Support Programme (CHSP) from 1 July 2015.

‘Sector support’ will be a service group in its own right, with an aim to be more “nationally consistent” than it currently is.

Aims to streamline, standardise and improve services nationally, reduce red tape, avoid multiple registration and assessment and improve access to information for service users.

Introduction of standard national assessment and entry point through My Aged Care – call centre will be based in Victoria.

Aims to instil a culture of ‘doing with’ rather than ‘doing for’ with a focus on reablement.

Introduction of a nationally consistent (means tested) fees policy to standardise how much service users contribute to the services they receive.

Establishment of Regional Assessment Organisations when service users need face to face assessment.

Continuation of ‘block funding’ to service providers at present but possibility of this being looked at in future reviews.

There will no longer be funding for coordination as a separate service, this is now considered part of the general service provision.

Changes to how service types are grouped, now across seven (7) service groups (refer Attachment 3 for group listing)

Organisations will be invited to tender for the delivery of sector support from 1 July 2015.

Undertaking a review of funding for transport services – to be released mid-2014.

Part of a suite of continual review beyond 2015.

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Anticipated fee increases (at $5 per hour, Council is one of the cheapest providers in the area)

3. Conclusion and Feedback Recommendations 3.1 Regional Response

The Barossa Council participated in the Seniors’ Collaborative Action Project (SCAP) Forum held on 12 June. Tony Pasin, MP, Federal Member for Barker was present, and aged care providers developed a regional response to the CHSP Discussion Paper. Key points included:

Service providers acknowledge the need for Aged Care Reforms and consider aspects of the new Programme as being particularly favourable, namely the 7 new Service Groupings, and the emphasis on consumer wellbeing and reablement;

Service providers are concerned that much developmental work still needs to be undertaken before commencement of the CHSP in 12 months’ time, namely the fees policy; the review and definition of Community Transport, and the role and nature of Carer Support in the Programme other than Respite;

SCAP is also concerned that the tender process for the new Regional Assessment Organisations is yet to take place, which will not leave much time for transition to the new Assessment process;

Of major concern is the removal of funding for services currently funded under 'Service Group 2' which includes: assessment, care coordination, case management and informal counselling. For one organisation in particular, the removal of funding for these services will result in significant staff redundancies across our region;

Service Providers would like to see the unique SA model of 'Sector Support' i.e. the Network of Collaborative Projects, applied nationally, and continuing to reflect the specific needs of regions; and

Likewise, SA has a unique and very effective framework for the delivery of Carer Support, and would like that community development model of supporting and building the capacity of carers to be adopted nationally.

3.2 The Barossa Council Response

A great deal of the intricacies of the Commonwealth Home Support Program is still to be worked through, which makes it particularly hard to formulate any clear recommendations on the impact to Council’s service provision. However a few overarching recommendations can be made at this time for feedback to the Department of Social Services, with further updates to Council being presented when more is known:

1. That Council support all recommendations made by the SCAP Forum.

2. That Council would like to see provisions made to protect smaller local service providers within the process for selection and delivery of services by My Aged Care to ensure that consumers are provided with a choice from a range of providers.

3. That further information is provided by the Department on the service coordination component. With the coordination of services being merged with service delivery will the funding for coordination be brought across and added to the funding provided for delivery?

4. That no changes be made to eligibility requirements that result in a restriction of eligibility.

5. That further development and clarity is provided on how clients will access services including:

5.1. Will all enquiries/service requests have to be directed through to My Aged Care?

5.2. How will referrals be received by service providers?

5.3. Once a Client has been referred to a service, can they return to the same service for further work, or will they be required to refer back to My Aged Care each time?

3.3 Potential Impacts on Council Services

Anticipated increase in hourly service charge from current level of $5 per hour.

Potential withdrawal of home based assessment by Council staff – transfer to Regional Assessment Organisation and loss of funding (currently $19,000 per annum).

Potential for Council to tender for expanded delivery of sector support services.

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4. DEBATE AGENDA 4.1 DEBATE AGENDA – CORPORATE AND COMMUNITY SERVICES - DIRECTOR 4.1.1 BAROSSA CYCLE HUB – BUDGET VARIATION B2226

MOVED Cr Milne that Council:

(1) Approves the additional $37,633 budget for the Barossa Cycle Hub: $29,133 in 2013/14 and $8,500 in 2014/15 financial years;

(2) Authorises the Director Corporate and Community Services to make the

necessary budget adjustments and amendments to the construction contract and notify the Commonwealth Government in relation to the revised project costs.

Seconded Cr Miller CARRIED

INTRODUCTION

Additional variation costs for construction of the Barossa Cycle Hub require consideration by Council.

COMMENT

At its Special Council Meeting on 25 February 2014 Council resolved that: MOVED Cr de Vries that Council: 1 Awards the Tender for the construction of the Barossa Cycle Hub to BGI Building Group at a cost of

$529,700 (excl GST). 2 Approves additional budget allocation of up to $160,000 to the Barossa Cycle Hub project to be funded

by a transfer of savings in the office vehicle and major plant and equipment replacement budgets to the Barossa Cycle Hub capital expenditure (asset reference 601294).

3 Instructs Officers to investigate alternative funding options for elements of the project from the

Tanunda Town Committee reserves. 4 Instructs Officers to negotiate revisions to the Funding Agreement with the Commonwealth

Government for the Barossa Cycle Hub Project necessitated by the changes to the Project specification and associated costs.

5 Having considered this matter in confidence under Section 90(2) and 90(3)(k) of the Local Government

Act 1999, makes an order pursuant to Section 91(7) of the Local Government Act 1999, that the minutes in relation to the confidential item 2.1.1 of the Special Council Meeting and titled Barossa Cycle Hub – Construction Contract Tender Award / Request for Budget Increase (B2336), other than the minutes relating to the Confidentiality Order, be kept confidential and not available for public inspection until the end of the meeting.

6 Having considered this matter in confidence under Section 90(3)(k) of the Local Government Act 1999,

makes an order pursuant to Section 91(7) of the Local Government Act 1999, that the Report, Attachments and associated documents in respect of confidential item 2.1.1 of the Special Council Meeting held 25 February 2014 and titled Barossa Cycle Hub – Construction Contract Tender Award / Request for Budget Increase (B2336), be kept confidential and not available for public inspection, subject to annual review with the Chief Executive Officer delegated to undertake the annual review.

Seconded Cr Lykke CARRIED Since the meeting and following steps to complete the award of contract to BGI Building Group, variations to the contract price have been required. Until recently the detailed costs have been under review,

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particularly in relation to the delay in obtaining Building Rules consent for the project which was not secured until 22 April 2014. The delay was primarily due to a lengthy review of the footings requirements for the project given the reactive nature of the soils. The independent Certifier required adjustments to the engineer’s proposal prior to sign off. This in turn had a knock on effect on BG Building Group being able to finalise pricing for the revised footings and the additional concrete specified for the infill of the associated block work. To avoid bringing multiple requests back to Council, officers have waited to enable a more comprehensive summary of these costs and some additional variations to be considered by Council. The overall variations and reasons for the changes are detailed below:

No Variation Item $ ex GST Reason

1 Original contract price quoted at $529,700 instead of $537,605

7905 Did not include auto shut off for taps and revised slab requirements for paving as quoted by builder

2 Revised sizing of footings based on certifiers requirements Plus related concrete infill of block work

10,441 3542

Footings recommended by engineer not approved by Certifier – had to be revised at increase cost to accommodate reactive nature of soils

3 Coin operable showers (ie: hot and cold water on timing device to control water and electricity use)

3165 Additional shower specified due to adding in extra accessible shower following feedback from Disability Access Review Committee (ie 2 showers originally specified, now have 3) Electronic coin timers extra expense but mechanical timers not suitable for purpose

4 Regipol floor covering for cycle storage area (not cycle hire area – as per fitness centre floor at the Rex)

3410 Greater slip resistance for cyclists with studded footwear – concrete

5 Extra piers and hole excavation 1140 Contingency provision for dedicated septic to avoid future ground works.

6 Architectural fees 4720 Amended drawings for scope changes and footing redesign

Sub-total 34,323

6 Less savings on utilising BGWA septic -1690

Total 32,633

It is also recommended that a further $5,000 contingency is included to allow for any further minor variations. Reference to the utilisation of the Barossa Grape and Wine Association (BGWA) septic relates to in principle agreement that has been reached with BGWA for the facility to connect into its existing tank. The BGWA tank has a capacity of circa 20,000 litres, significantly in excess of the occupancy requirements of the BGWA building in isolation. Rather than expend money on a new additional, 5,000 litre septic for the cycle hub, it is proposed that the project has a permanent connection into the existing BGWA facility. Whilst the gross saving to the project is $7,830 the net savings reduce to $1,690 when the fees associated with the creation of the required easement are taken into account plus the connection fees and associated works. However, it is considered to be a better common sense and environmentally sound solution. Provision has been made in the footings for a separate septic to be connected at some point in the future if for any reason it is required. It is always regrettable when project costs require review. The project team has worked in a highly cooperative manner to progress the additional items in the most cost effective manner possible.

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Stage 1 construction works (building of the public toilets; cycle storage and cycle hire areas and associated verandas) is progressing well albeit approximately 2 weeks behind schedule taking into account the rain experienced at the time the slab was being poured. It is envisaged that Stage 1 will complete by the middle of August 2014. At which point the existing public toilets will be decommissioned and demolished with the overall project due for completion by January 2015. The amendments take the overall cost of the project to $602,533. This represents extra expenditure of $142,533 over the original $460,000 budget.

LEGISLATION/POLICY/COUNCIL STRATEGIC PLAN

Legislation: Local Government Act 1999 Council Strategic Plan: 1.3 Recreation 2.1 Tourism 3.4 Infrastructure 4.2 Service

FINANCIAL, RESOURCE AND RISK MANAGEMENT CONSIDERATIONS

Financial: The recommended $33,000 additional budget will be split between the 2013/14 and 2014/15 financial years as follows:

2013/14 $29,133 $13,550 transfer of Community Assets Fund from operational to capital expenditure (budget underspent up to 19.6.14) $15,583 balance to be added to capital works program (additional budget)

2014/15 $8,500 To be added to capital works program (additional budget)

Resource: No additional resource considerations Risk Management: The majority of additional expenditure has been justified on the basis of Council having to comply with requirements of the building rules certification for the project. The effective and manageable operation of the coin operated showers which will generate revenue to be offset against the ongoing maintenance of the facility is important to prevent uncontrolled water and power charges. The regipol flooring (made from recycled rubber products) has proven an effective, slip resistant floor in the Rex and should reduce potential claims from hub users.

COMMUNITY CONSULTATION

Community consultation has been undertaken in the development of the facility but is not required for the consideration of the budget variations under the Local Government Act or Council’s public consultation policy.

4.2 MANAGER ADMINISTRATIVE SERVICES

4.2.1 MEMORIAL PLAQUE REQUEST – MR MICHAEL CRAKER B256

MOVED Cr Milne that Council provide consent to the Craker family for installation of a memorial plaque no larger than 200mm x 100mm to be placed on an existing bench at the Linear Park opposite Kokoda Road, Nuriootpa in recognition of contribution to the business community of the Barossa by Mr Michael Craker. Seconded Cr Sloane CARRIED

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INTRODUCTION

Consent required for installation of a memorial plaque on a park bench along the Linear Park, adjacent Kokoda Road, Nuriootpa.

COMMENT

Ms Sarah Craker-Stollznow has written to Council (Attachment 1) requesting a memorial plaque be installed on a park bench along the Linear Park, adjacent to Kokoda Road, Nuriootpa.

As Mr Craker was not a member of a committee and in order to comply with Council’s Memorials on Community Land Policy (the Policy) (Attachment 2), this report has been prepared for Council consideration. A draft mark-up of the plaque will be provided to Director, Corporate and Community Services for approval prior to the plaque being installed however indicative wording provided by Ms Craker as follows: In memory of Michael Craker, “birth date” and “date of passing”

Should Council endorse the request, Ms Craker would like to install the plaque on 6 July 2014 to coincide with the anniversary of Mr Craker’s passing.


Legislation: Local Government Act 1999 Council Strategic Plan: Governance and Organisation – 4.1 Responsibility: We are committed to corporate and social responsibility, the sustainability of Council assets and services, and the effective planning and reporting to our community of Council performance. Community and Cultural Wellbeing – 1.3 Recreation: We are committed to providing quality recreation and sporting facilities, parks, gardens, playgrounds and open spaces for the benefit of the community.


Ms Craker has indicated that that the family will cover the costs of installation. Due to the simplicity of the request, any ongoing maintenance will be the responsibility of Council in consultation with the Craker family as required, as per section 4.1.3 (ii) of the Policy. Officers will communicate to the Craker family that relevant WHS controls are observed during the installation of the plaque.


Community Consultation is not required under legislation or Council’s Public Consultation Policy.

4.3 FINANCE 4.3.1 ASSET ACCOUNTING POLICY B1466

MOVED Cr de Vries that the updated Asset Accounting Policy be adopted by Council. Seconded Cr Seager CARRIED

INTRODUCTION

The Asset Accounting Policy was previously adopted by Council on 27 June 2013. Following a review, the updated Policy is presented to Council for adoption.

COMMENT

The Asset Accounting Policy has been reviewed by Officers and Staff and will be endorsed by the Audit Committee at its next meeting.

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The reviewed Policy has been drafted in the new format (refer Attachment 1), and proposed amendments are tracked within the document.


LEGISLATION: Local Government Act 1999 Australian Accounting Standards COUNCIL STRATEGIC PLAN: 4.1 – Responsibility


To ensure Council oversees assets appropriately, policy is required to provide a framework for management to work with.


Council Policy for asset accounting is undertaken in compliance with legislation and Council requirements asset management. Once the Policy is adopted by Council, they will be updated and available for the Community to access on Council’s website.

4.3.2 NURIOOTPA CENTENNIAL PARK AUTHORITY – BUDGET 2014/15 B1979

MOVED Cr Miller that the 2014/15 Annual Budget for the Nuriootpa Centennial Park Authority be noted and approved. Seconded Cr Sloane CARRIED

INTRODUCTION

To formally adopt the 2014/15 Annual Budget for the Nuriootpa Centennial Park Authority (NCPA).

COMMENT

The NCPA draft Budget for 2014/15 has been included in Council’s draft Annual Budget & Business Plan 2014/15. The NCPA Board reviewed and endorsed the Budget at their ordinary meeting held 10 April 2014. The NCPA capital expenditure plan was adopted by Council at the June council meeting, this expenditure and the loan financing has been included in Councils forward estimates in the annual review of the Long Term Financial Plan 2014-15 to 2023-24.


Nuriootpa Centennial Park Charter LEGISLATION: Local Government (Financial Management) Regulations COUNCIL STRATEGIC PLAN: 4.1 – Responsibility 4.3 – Systems


Officers have prepared a long term financial plan for the NCPA which requires consideration and adoption by the NCPA Board.


Included as part of the draft Annual Budget and Business Plan 2014/15 consultation and adoption process.

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4.3.3 PUBLIC SUBMISSIONS ON THE DRAFT ANNUAL BUDGET & BUSINESS PLAN 2014/15 INCORPORATING THE LONG TERM FINANCIAL PLAN 2014/15 TO 2023/24 B2208

MOVED Cr de Vries that Council note that no verbal or written submissions were received during the consultation phase on the draft Annual Budget and Business Plan 2014/15, incorporating the Long Term Financial Plan 2014/15 to 2023/24. Seconded Cr Miller CARRIED

INTRODUCTION

To review public submissions on the Draft Annual Budget & Business Plan 2014/15, incorporating the Long Term Financial Plan 2014/15 to 2023/24.

COMMENT

The Local Government Act 1999 (the Act) requires that Council develop Strategic Management Plans. The Council’s Annual Budget & Business Plan (AB&BP) 2014/15, incorporating the Long Term Financial Plan (LTFP) 2014/15 to 2023/24 has been prepared. At the Special Council Meeting held on 21 May 2014, Council endorsed the draft AB&BP incorporating the annual review of the LTFP for public consultation from 28 May to 18 June 2014 . Council must consider any submission during the public consultation period before adopting its Annual Budget/Business Plan (with or without amendment) as required in Section 123 of the Act. Also pursuant to Section 122 of the Act, Council must undertake a review of its Long Term Financial Plan as soon as practical after adopting the Council’s Annual Budget/Business Plan. The public consultation process provides an opportunity for the Community and business to review Council’s service provision in a transparent and accessible manner.

The consultation process:

public notices placed in the Leader, Herald and Bunyip newspapers on 28 May 2014;

a media release to highlight the Council Budget focus - Mayor provided additional information as and when requested by the media;

the draft AB&BP incorporating LTFP was available at Council’s Principal Office, Branch Offices/Libraries and on Council’s website;

at the 24 June 2014 Council Meeting: at 10.00am, for a period of at least 1 hour, any interested person invited to address Council in support of their written submission or address from any person who may wish to be heard.

Written Submissions: Consultation closed at 5pm on 18 June 2014. No written submissions were received during the consultation phase.

Verbal Submissions: No verbal submissions were received.


LEGISLATION: Local Government Act 1999 COUNCIL STRATEGIC PLAN: 4.1 – Responsibility 4.3 – Systems


All submissions must be assessed by Council to consider the affect, if approved, on the long term financial sustainability of Council and any risk management issues.

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Detailed within this report and included as part of the draft Annual Budget and Business Plan 2014/15 consultation and adoption process, and in accordance with the Act.

4.3.4 ANNUAL BUDGET & BUSINESS PLAN 2014/15 INCORPORATING THE LONG TERM FINANCIAL PLAN 2014/15 TO 2023/24 B1979

MOVED Cr Milne that Council, pursuant to Section 123 of the Local Government Act 1999, having noted no submissions were made during the public consultation period and amendments laid before the Council at this meeting: * the draft Annual Business Plan 2014/15 used for the purpose of public

consultation, as amended, be adopted as The Barossa Council Annual Business Plan 2014/15;

authorises the Chief Executive Officer to make necessary minor changes to the text of the Annual Business Plan 2014/15 prior to formal publication. Seconded Cr Sloane CARRIED

MOVED Cr Miller that Council, pursuant to Section 122 and 123 of the Local Government Act 1999, having noted no submissions were made during the public consultation period and amendments laid before the Council at this meeting: * The draft Annual Budget 2014/15, used for the purpose of public consultation, as

amended, be adopted as The Barossa Council Annual Budget 2014/15; * The annual review of the draft Long Term Financial Plan 2014/15 to 2023/24, used

for the purpose of public consultation, as amended, be adopted as The Barossa Council Long Term Financial Plan 2014/15 to 2023/24;

* Notes the Chief Executive Officer’s Council’s Sustainability report on the Council’s long term financial performance and position as recorded in the Annual Budget & Business Plan 2014/15, incorporating the Long Term Financial Plan 2014/15 to 2023/24; and

Authorises the Chief Executive Officer to make necessary minor changes to the text of the Annual Budget 2014/15, incorporating the Long Term Financial Plan 2014/15 to 2023/24 prior to formal publication. Seconded Cr Seager CARRIED

INTRODUCTION

To adopt the consolidated Annual Budget & Business Plan (AB&BP) 2014/15, incorporating the annual review of the Long Term Financial Plan 2014/15 to 2023/24.

COMMENT

Public Submissions

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Pursuant to Section 123 (6) of the Local Government Act 1999 (the Act), Council has considered all submissions received for the public consultation process while finalising the Annual Business Plan.

Revised Information Valuation Rating & Analysis Valuation data, as provided by the Valuer-General, has been received and updated in Council’s modelling tools, using the draft Rating Model as included within the Draft AB&BP for 2013-14. Updates have been made to the Property Valuation and include an increase in Natural Growth for this rating year to 1.32%.

An amendment to the draft AB&BP for the supplementary valuations to Week 51 is included within the following Valuation and Differential Rating reports to this meeting and the AB&BP document. A net increase of $53,318 in general rate revenue is projected for 2014/15.

Operating Budget Subsequent to the release of the Draft AB&BP and LTFP on 28 May 2014, Officers have received new and revised information which has been included in the amended AB&BP and LTFP. The State Budget announced 20 June 2014 requires increased estimated expenditure by $15,322 p.a. Further reviews to the Budget over the last few weeks include; increased service charges and expenditure for waste services, extra general rate revenue for better than expected growth, as listed in the table. At the Council meeting held 24 June 2014, amendments were approved for the amount of $24,500. The various amendments to the operating budget overall has improved the forecast operating result to a surplus of $60,799 from a draft deficit of $12,310, as follows:

Who What / Where Details Amendments $ Favourable/

(Unfavourable) Default year

2014/15

Rate Revenue - increase

Growth through development increasing valuation

Growth Budget at 1% actual as at week 51 was 1.32%

53,318

Expenditure Rebate - extra

Discretionary rebates Estimate for Vines retirement rate rebate

(5,000)

Revenue - increase Waste Service charge rate Waste collection extra services

6,000

Expenditure Waste collection contractor

Waste collection contractor Waste collection extra services

(20,525)

Revenue - increase Recycling Service charge rate Recycling collection extra services

3,150

Expenditure - increase

Recycling collection contractor Recycling collection reduced cost – budget overestimated

9.250


Nuriootpa Centennial Park Authority loan portfolio

Revised interest payment for short term loan requirements

(12,917)


Emergency Service Levy State Budget - removal remissions; were around 46%

(5,622)


Motor Vehicle Registration State Budget – increase in charges 12-15%

(9,700)

Expenditure - extra Event Strategy contributions – support for 2 years

Council meeting 24 June (16,750)

Expenditure - extra Food Barossa contributions Council meeting 24 June (5,000)

Expenditure - extra Elected Members donation budget

Council meeting 24 June (3,000)

Revenue - extra Insurance portfolio Identified special distribution bonus for 14-15

79,905

Net Total Budget Amendments

73,109

Amendments have been made to the draft Budgeted Financial Statements as a result of the rating adjustments and other minor expenditure increases and reductions. The Nuriootpa Centennial Park Authority has approved their 2014/15 Budget. This information is contained within Council’s AB&BP.

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Annual Budget & Business Plan As required under Section 123 of the Act, the draft Business Plan has been prepared and is contained within the first section of the draft AB&BP 2014/15.

The consolidated Financial Statements are included in the “Annual Budget” section of the draft AB&BP 2014/15.

Pursuant to Section 123 (7) of the Act, Council must adopt its Annual Business Plan with or without amendment before the adoption of its Annual Budget, as per the following excerpt:

Pursuant to Section 153(5)(a) of the Act, Council must adopt its AB&BP prior to adopting rates for the financial year.

Long Term Financial Plan As required in Section 122 of the Act, Council must undertake a review of its LTFP as soon as practical after adopting the Council’s Annual Business Plan.

The annual review of the LTFP is included as a section within the document. It is noted that following the inclusion of the submissions and revised information above, the LTFP has been updated from the draft consultation document.

The LTFP sits within the Business Planning Framework providing an integral link between the Council strategy and Council operations.

Following the announcement of the doubling of the Roads to Recovery payment in 2015-16 an additional $328,734 has been added to the capital expenditure - renewal/replacement transport assets program as well as the operating grants as a one-off item.

Financial Sustainability & Performance Report As required in Section 122 of the Act, the Council’s Chief Executive Officer (CEO) is to prepare a report on the Council’s long term financial performance and position taking into account the provisions of Council’s annual business plan and strategic management plans.

Council’s Financial Sustainability Principles play an important part of the preparation of the LTFP and are included in the document. Council has adopted the Local Government sector key financial indicators to assess Council’s long-term financial sustainability. The CEO report uses the Key Performance Indicators (KPI’s) as a tool to analyse and measure forecasts to targets.

The measurement of Council’s performance includes both financial and non-financial KPI’s. These are reported within the document in detail for the budget year and in summary for the 10 year plan. Council must ensure (where practicable) all adopted budgets are within established financial sustainability targets. In instances where ratios are not within a target, the LTFP adopted by Council will reflect a sustainable progression to such target. An explanation of the variances for the LTFP KPI’s are recorded in the document.

A Financial Sustainability Performance Report is included in the final AB&BP on the section “Long Term Financial Plan 2014/15 to 2023/24”.


LEGISLATION: Local Government Act 1999

COUNCIL STRATEGIC PLAN: 4.1 – Responsibility 4.3 – Systems


Council must ensure (where practicable) all adopted budgets are within established financial sustainability targets. In instances where ratios are not within a target, the LTFP adopted by Council will reflect a sustainable progression to such target. The original budget is adopted following an extensive preparation and consultation process including the raising of rates at the appropriate levels for financial sustainability to be achieved.

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The Financial Sustainability analysis indicates that The Barossa Council is currently financially sustainable for the forecast period covered by the LTFP. For the 2014/15 Annual Budget & Business Plan:

KPI 1 – (Operating Surplus) surplus of $61k

KPI 2 – (Operating Surplus Ratio) a rolling 3 year a deficit of (0.05%) are both within the acceptable, established target range set by Council, but will require ongoing quarterly review to monitor.

KPI 4 – (Net Financial Liabilities Ratio) at 49.4% is comfortably within Council adopted targets of zero to 100%.

KPI 6 – (Asset Sustainability Ratio) at 92.2% is better than Council’s adopted targets. It is imperative Council’s financial sustainability principles and indicators are considered in budget processes and estimates. All budget estimates must include the measurement of all financial indicators and where relevant the justification and implication for not working within these targets. The LTFP target for an operating surplus over the combined forward five year period is met with a surplus of $1,695k falling within the acceptable, established target range set by Council. The objective for the review of Council’s LTFP is to achieve financial sustainability in the medium to longer term. In the absence of a regular review, financial sustainability will go unchecked, reducing Council’s ability to absorb unplanned activities or financial shocks and impacts. The Corporate and Organisational Management Teams will work to achieve the longer term target for further improvements to Council long financial sustainability through an ongoing budget and organisational initiatives include the following approach: Implementation of the approved Strategic Projects Program Continued development of zero based budget process for 2014-15 to recalculate all expenditure and

revenue settings across every operational area to find savings and potential increased revenues from sources not related to rates;

Undertake a review of the net cost of all services provided by Council to further drive opportunities for efficiencies;

Continue to review Council’s asset base for accurate depreciation charges, renewal requirements and sustainable service levels.

Periodic updates on outcomes and options coming out of the work being undertaken has and will continue to be reported to Council.


Included as part of the draft Annual Budget and Business Plan 2014/15 consultation and adoption process, and in accordance with the Act.

4.3.5 ADOPTION OF VALUATIONS FOR 2014/15 RATING PURPOSES B378

MOVED Cr de Vries that Council, in accordance with Section 167(2)(a) of the Local Government Act 1999, adopts for rating purposes for the year ending 30 June 2015, the Valuer-General’s most recent valuations available to Council of the Capital Value in relation to the area of the Council, which specifies that the total of the values that are to apply within the area is $4,541,339,560 of which $4,436,596,567 is rateable. Seconded Cr Seager CARRIED

INTRODUCTION

Property valuations received from the Valuer-General require adoption for the purpose of generating the 2014/15 rates.

COMMENT

The movement in property valuations from 2013/14 to 2014/15 is outlined in the table below.

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Table 1 – Property Valuations Movement

Land Use

Code

No. of assessments

13/14 Total Valuations

$

13/14 Average

Valuation $

No. of Assess- ments

14/15 Total Valuations

$

14/15 Average

Valuation $

% Movement

Total Valuations

Residential 1

8,472

2,575,048,796

303,948

8,580

2,655,243,618

309,469 3.11%

Commercial 2-4

589

266,882,054

453,110

600

271,264,942

452,108 1.64%

Industry - Light 5

43

14,604,247

339,634

41

11,393,632

277,893 -21.98%

Industry - Other 6

107

221,061,310

2,065,994

104

225,474,695

2,168,026 2.00%

Primary Production 7

2,206

1,093,574,587

495,727

2,199

1,112,842,842

506,068 1.76%

Vacant Land 8

622

98,966,380

159,110

656

108,834,680

165,907 9.97%

Other 9

146

49,290,088

337,603

146

51,542,158

353,028 4.57%

12,185

4,319,427,462

12,326

4,436,596,567 2.7%

There has been an increase of approximately $37 million in the total property valuations from those tabled in the previous public consultation version of the Annual Budget and Business Plan 2014/15. This is as a direct result of recent re-visits, etc by the Valuer-General, including additional ‘new’ revenue from additional tenancies (as reflected in the increase in the number of residential and commercial properties).




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4.3.6 DECLARATION OF DIFFERENTIAL GENERAL RATES 2014/15 B378

MOVED Cr Milne that Council, pursuant to Sections 152(1)(c)(i), 153(1)(b) and 156(1)(a) of the Local Government Act 1999, declares the following differential general rates on rateable land within its area for the year ending 30 June 2015, based upon the capital value of the land, which rates vary by reference to land use categories as per Regulation 14 of the Local Government (General) Regulations 2013: (1) Category 1 use (Residential), a rate of 0.33070 cents in the dollar; (2) Category 2 (Commercial - Shop), category 3 (Commercial – Office) and

Category 4 (Commercial – Other) a rate of 0.50500 cents in the dollar; (3) Category 5 use (Industry - Light), a rate of 0.52580 cents in the dollar; (4) Category 6 use (Industry - Other), a rate of 1.47380 cents in the dollar;

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(5) Category 7 use (Primary Production), a rate of 0.33462 cents in the dollar; (6) Category 8 use (Vacant Land), a rate of 0.59000 cents in the dollar; (7) On rateable land of category 9 use (Other), a rate of 0.53600 cents in the dollar. Seconded Cr Miller CARRIED

RESIDENTIAL RATES CAP

MOVED Cr de Vries that Council, pursuant to Section 153(3) and (4) of the Local Government Act 1999, has determined to fix a maximum increase in general rates levied upon a category 1 land use (Residential) property for the year ending 30 June 2015, which constitutes the principal place of residence of a principal ratepayer at: (a) 7.5% over and above the general rates levied for the 2013/14 financial year (for

residential ratepayers who are eligible for a State Government concession on their Council rates); or

(b) 15% over and above the general rates levied for the 2013/14 financial year (all

other residential ratepayers); Provided that:

The property has been the principal place of residence of the principal ratepayer since at least 1 July 2013; and

The property has not been subject to improvements with a value of more than $20,000 since 1 July 2013.

Seconded Cr Milne CARRIED

INTRODUCTION

To adopt the differential general rates-in-the-dollar to apply for the 2014/15 rating year.

COMMENT

A comparison of the rates-in-the-dollar for 2013/14 and 2014/15 is outlined in the table below: Table 1 – Rate-in-$ comparison 2013/14 – 2014/15

13/14 Rate in

$/charge

13/14 Revenue

$

% of Total Rate

Revenue (excl Fixed Chg)

Proposed 14/15 Rate in

$/charge

14/15 Revenue

$

% of Total Rate Revenue

(excl Fixed Chg)

% Increase in revenue

Residential 0.0031878

8,208,741 47.92% 0.0033070

8,780,891 48.31% 7.0%

Commercial 0.0048600

1,297,047 7.57% 0.0050500

1,369,888 7.54% 5.6%

Industry - Light 0.0050870

74,292 0.43% 0.0052580

59,908 0.33% -19.4%

Industry - Other 0.0144000

3,183,283 18.58% 0.0147380

3,323,046 18.28% 4.4%

Primary Production 0.0032600

3,565,053 20.81% 0.0033462

3,723,795 20.49% 4.5%

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Vacant Land 0.0056060

554,806 3.24% 0.0059000

642,125 3.53% 15.7%

Other 0.0050250

247,683 1.45% 0.0053600

276,271 1.52% 11.5%

Fixed Charge 284

3,262,876 300

3,476,400 6.5%

TOTAL

20,393,780 100.0%

21,652,318 100.0% 6.17%

There has been no change in the proposed rates-in-the-dollar (from the Public Consultation version)




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4.3.7 DECLARATION OF FIXED CHARGE FOR RATING PURPOSES B385

MOVED Cr Milne that Council, pursuant to Section 152 (1)(c)(ii) of the Local Government Act 1999, declare a Fixed Charge of $300 on each separately valued piece of rateable land within the Council area for the year ending 30 June 2015. Seconded Cr Miller CARRIED

INTRODUCTION

To consider the imposition of a Fixed Charge on all rateable properties for the 2014/15 rating year.

COMMENT

A Fixed Charge of $300 represents a $16 increase on the amount applied for the 2013/14 rating year.




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4.3.8 DECLARATION OF 2014/15 WASTE COLLECTION SERVICE CHARGE

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B378

MOVED Cr Milne that Council, pursuant to Section 155 of the Local Government Act 1999, and in order to provide the service of waste collection in those parts of the Council’s area described in (3) below, declares the following service charges by reference to the nature and/or level of usage of the service, for the year ending 30 June 2015: (1) Non-recyclable Waste Collection (a) An annual service charge of $108.00 (77.15¢ per litre capacity for 140L collection

receptacles); (b) An annual service charge of $147.10 (61.30¢ per litre capacity for 240L collection

receptacles); except in instances where, subject to written application to and approval by the Council, residential households with six or more permanent residents may receive a 240L receptacle at the same service charge level of a 140L receptacle.

(2) Recyclable Waste Collection An annual service charge of $51.90 (21.63¢ per litre capacity for 240L collection

receptacles. (3) Parts of Council Area (a) The townships of Angaston, Lyndoch, Moculta, Mount Pleasant, Nuriootpa,

Stockwell, Tanunda and Williamstown; (b) The policy areas of Eden Valley and Springton; (c) Land in the Council’s area between Altona Road and Barossa Valley Way known as

“Altona”; (d) Any other part of the Council area not otherwise described in this section to

which the Council makes available (at this date) a waste collection service.

Seconded Cr Seager CARRIED

INTRODUCTION

To consider the declaration of the Waste Collection Service Charge for the 2014/15 rating year.

COMMENT

The proposed service charges are based on the estimated cost to Council in providing the service. Pursuant to Section 155(5) of the Local Government Act 1999, Council cannot recover by way of the service rate an amount exceeding the estimated cost of operating the service.





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4.3.9

2014/178


DECLARATION OF COMMUNITY WASTEWATER MANAGEMENT SYSTEMS (CWMS) RATE AND SERVICE CHARGE B383

MOVED Cr Miller that Council, pursuant to Section 155 of the Local Government Act 1999, declare a service rate and charge for the year ending 30 June 2015, in the following areas to which Council makes available a Community Wastewater Management System (CWMS): 1. Lyndoch, Mount Pleasant, Nuriootpa, Penrice, Stockwell, Tanunda and

Williamstown – Residential & Vacant Land Properties (a) An annual service charge of $300 of occupied residential rateable and non

rateable land; (b) An annual service charge of $100 on each assessment of vacant rateable and

non-rateable land. 2. Lyndoch, Mount Pleasant, Nuriootpa, Penrice, Stockwell, Tanunda and

Williamstown – Non-Residential & Non-Vacant Land Properties A service rate of 0.119442 cents in the dollar of the capital value of occupied non-

residential rateable land. 3. Springton – Residential & Vacant Land Properties (a) An annual service charge of $535 (including a capital repayment contribution of

$245) on assessments of occupied residential rateable land and non-rateable land;

(b) An annual service charge of $245 on assessments of occupied non-rateable land; (c) An annual service charge of $55 on each assessment of vacant rateable and non-

rateable land. 4. Springton – Non-Residential & Non-Vacant Land Properties (a) A service rate of 0.119442 in the dollar of the capital value of occupied non-

residential rateable land; (b) An annual service charge of $245 on assessments of occupied non-residential

land. Seconded Cr de Vries CARRIED

INTRODUCTION

To consider the declaration of Community Wastewater Management Systems (CWMS) rates and charges for the 2014/15 rating year.

COMMENT

The proposed service rates and charges are based on the estimated cost to Council in delivering the service. Pursuant to Section 155(5) of the Local Government Act 1999, Council cannot recover by way of the service rate and charges an amount exceeding the estimated cost of operating, maintaining, improving and replacing the service. The “service rate” component for residential properties has been removed. Therefore the charge for all residential properties connected to a CWMS scheme is now solely based on a service charge.


2014/179




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4.3.10 DECLARATION OF SEPARATE RATE FOR THE BAROSSA AQUATIC AND FITNESS CENTRE

MOVED Cr Sloane that Council, pursuant to Sections 154 and 156(1)(a) of the Local Government Act 1999, for the purpose of raising $878,010 to meet loan repayments for the funding of the activity which is the Barossa Aquatic and Fitness Centre, declares the following differential Separate Rates for year 6 of 6 years, within parts of the area of Council comprising all rateable land, (except land with a vacant land use) for the year ending 30 June 2015, based upon the capital value of the land which rates vary by reference to land use categories as per Regulation 14 of the Local Government Act (General) Regulations 2013 as follows:

(1) Category 1 use (Residential), a rate of 0.01934 cents in the dollar;

(2) Category 2 use (Commercial – Shop), Category 3 use (Commercial – Office) and Category 4 use (Commercial – Other), a rate of 0.03307 cents in the dollar;

(3) Category 5 use (Industry – Light), a rate of 0.03307 cents in the dollar;

(4) Category 6 use (Industry – Other), a rate of 0.07710 cents in the dollar;

(5) Category 7 use (Primary Production), a rate of 0.00720 cents in the dollar;

(6) Category 9 use (Other), a rate of 0.03307 cents in the dollar. Rebate of Separate Rate for the Barossa Aquatic and Fitness Centre That Council, pursuant to Section 166(1)(l) of the Local Government Act 1999, grants a rebate of 50% on the Separate Rate to the principal ratepayer of rateable land within the land use Category 1 (Residential), Category 7 (Primary Production) and Category 9 (Other), where the principal ratepayer is eligible for a State Government concession on their Council Rates. Seconded Cr Milne CARRIED

INTRODUCTION

To adopt the differential separate rates-in-the-dollar to apply for the 2014/15 rating year.

COMMENT

The proposed Separate Rate is to be applied (pursuant to Sections 154 and 156(1)(a) of the Local Government Act 1999) on all rateable properties (excluding vacant allotments) to fund the first six years of loan repayments due on a $7M loan drawn in 2009-10 and a further $2M loan drawn in 2010-11. (The loan repayments for subsequent years then being absorbed within the existing General Rates). The 2014-15

2014/180


financial year will be the final year of this separate rate. A rebate of 50% of the Separate Rate will apply for all ratepayers who are eligible for a State Government concession on their Council Rates. This is the final year of the separate rate. The Rates in the Dollar for the Separate Rate have been amended slightly from those used in the draft Annual Budget and Business Plan. This is due to an increase in the pensioner rebate estimate and a slightly lower than expected growth through revaluations.





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4.3.11 DECLARATION OF NATURAL RESOURCE MANAGEMENT LEVIES B383

MOVED Cr Miller that Council, in exercise of the powers contained in Section 154 of the Local Government Act 1999, for the year ending 30 June 2015 and in order to reimburse Council for the amount contributed to the: (1) Adelaide and Mount Lofty Ranges Natural Resources Management Board, a levy in

the nature of a separate rate be imposed comprising 0.00932 cents in the dollar of the Capital Value of land, on all rateable land in the Council’s area in the area of that Board in accordance with Section 95 of the Natural Resources Management Act 2004;

(2) SA Murray-Darling Basin Natural Resources Management Board, a levy in the nature of a separate rate be imposed comprising 0.01030 cents in the dollar of the Capital Value of land, on all rateable land in the Council’s area in the catchment area of that Board, in accordance with Section 95 of the Natural Resources Management Act 2004.

Seconded Cr de Vries CARRIED

INTRODUCTION

To consider the declaration of the State Government Natural Resource Management levies for the 2014/15 rating year.

COMMENT

The levies are collected on behalf of the State Government and then forwarded to the various Boards on a quarterly basis.




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4.3.12 PAYMENT OF RATES B378

MOVED Cr Miller that Council:

(1) Pursuant to Section 181(1) of the Local Government Act 1999, all rates and charges will be payable in four quarterly instalments due on 2 September 2014, 2 December 2014, 3 March 2015 and 2 June 2015; provided that in cases where the initial account requiring payment of rates is not sent at least 30 days prior to this date, or an amended account is required to be sent, authority to fix the date by which rates must be paid in respect of those assessments affected, is hereby delegated to the Chief Executive Officer.

(2) Pursuant to Section 44 of the Local Government Act 1999, the Chief Executive Officer (or his delegate) be delegated power under Section 181(4)(b) of the Act to enter into agreements with ratepayers relating to the payment of rates in any case where he considers it necessary or desirable to do so.

Seconded Cr Sloane CARRIED

INTRODUCTION

To consider quarterly payment due dates for the 2014/15 rating year.

COMMENT

In accordance with the provisions of the Local Government Act 1999, rate payments must be offered on a quarterly basis in September, December, March and June each year.




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4.3.13 APPLICATION FOR DISCRETIONARY REBATE B395

MOVED Cr Miller that the proposed Discretionary Rebate for Vines Retirement Pty Ltd be approved. Seconded Cr de Vries CARRIED

INTRODUCTION

2014/182


To consider application from The Vines Retirement Pty Ltd for a Discretionary Rate Rebate in terms of Section 166(1)(h) of the Local Government Act 1999 for the 2014-15 rating year. Details of the proposed discretionary rate rebate are attached

COMMENT

In accordance with the provisions Section 166(1)(h) of the Local Government Act 1999, the retirement villages detailed below all receive a 50% rebate on the fixed charge for Independent Living Units they own. This now amounts to $150 per unit.

The Barossa Village

Barossa Senior Citizens Homes

Tanunda Lutheran Homes

Abbeyfield Society District of Barossa Inc

Talunga Village ( Lutheran Community Housing)

This rebate was first approved by Council in June 2001 when certain rate exemptions were removed from the Local Government Act 1999. Currently we have 262 Residents within retirement villages (as listed above) receiving the rebate at a total of around $44,000. Retirement villages levy a maintenance fee which includes the rates for each unit. As the residents from the Vines do not currently receive the same rebate they are at a disadvantage to other similar residents in the council area.


LEGISLATION: Local Government Act 1999 Section 166 (1) COUNCIL STRATEGIC PLAN: 4.1 – Responsibility 4.3 – Systems


A budget amount of $5,000 for this item has been included within this Agenda.


Community consultation not required under the Local Government Act 1999 and Council’s Public Consultation Policy Mayor Hurn ……Council appreciates the work of the officers in developing the budget and business plan which is …..

5. NEXT MEETING Ordinary Council meeting on Tuesday 15 July 2014 at 9.00am. 6. CLOSURE OF MEETING Mayor Hurn declared the meeting closed at 6.54pm

Confirmed at Council Meeting Tuesday 15 July 2014

Date:......................................... Mayor:......................................

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