MINUTES Special Meeting of Council 6.00pm Wednesday May 30, 2012
*** Broadcast on Phoenix FM 106.7 ***
VENUE: Reception Room, Bendigo Town Hall, Hargreaves Street, Bendigo
NEXT ORDINARY MEETING: Wednesday June 13, 2012 Bendigo Town Hall Copies of the City of Greater Bendigo Council’s Agendas & Minutes can be obtained online at www.bendigo.vic.gov.au
Vision Values Goal Areas
GREATER BENDIGO will be the best place to live work and visit, where: • growth and living standards are managed to sustain and enhance quality of life • a regional culture of learning, creativity and innovation allows people to flourish • its rich natural and cultural heritage is conserved for today and tomorrow • resilience, local spirit and identity are proudly celebrated. Council will achieve its vision by working with the community and business, displaying leadership in its decision-making, operating in an open manner and basing decisions on sound information.
Council will realise its vision by setting strategic objectives, strategies and committing to annual actions within four Goal Areas: • Built and Natural Environment • Economic Development • Community and Culture • Our People, Our Processes
SPECIAL MEETING AGENDA 30 MAY 2012 WEDNESDAY 30 MAY 2012
ORDER OF BUSINESS:
ITEM
PRECIS
PAGE
ACKNOWLEDGEMENT OF COUNTRY
4
PRAYER
4
PRESENT
4
APOLOGIES
4
DECLARATIONS OF CONFLICT OF INTEREST
5
1.1 Declarations of Conflicts of Interest for Budget Items
6
1.2 Proposed Budget for the Municipal Year Ending 30 June 2013
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ACKNOWLEDGEMENT OF COUNTRY
PRAYER
PRESENT Cr Alec Sandner (Mayor) Cr Rod Campbell Cr Peter Cox Cr Rod Fyffe Cr Barry Lyons Cr Bruce Phillips Cr James Reade Cr Keith Reynard Cr Lisa Ruffell Mr Craig Niemann (Chief Executive Officer) Mr Stan Liacos (Director, City Futures) Mr Neal Wrigley (Manager, Rates) Ms Robyn Major (A/Director, Presentation & Assets) Mr Ross Douglas (A/Director, Planning & Development) Ms Pauline Gordon (Director, Community Wellbeing) Mr Peter Davies (Manager, Executive Services) Mrs Alison Campbell
APOLOGIES Ms Marg Allan (Director, Organisation Support) Ms Prue Mansfield (Director, Planning and Development) Mr Darren Fuzzard (Director, Presentation and Assets)
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MOTION
Moved Cr Fyffe, seconded Cr Phillips. That Standing Orders be suspended to allow the Chief Executive Officer to speak to the Proposed 2012/2013 Budget. CARRIED
MOTION Moved Cr Fyffe, seconded Cr Lyons. That Standing Orders be resumed. CARRIED
DECLARATIONS OF CONFLICT OF INTEREST Pursuant to Sections 77, 78 and 79 of the Local Government Act 1989 (as amended) direct and indirect conflict of interest must be declared prior to debate on specific items within the agenda; or in writing to the Chief Executive Officer before the meeting. Declaration of indirect interests must also include the classification of the interest (in circumstances where a Councillor has made a Declaration in writing, the classification of the interest must still be declared at the meeting), i.e. (a) (b) (c) (d) (e) (f) (g) (h)
direct financial interest indirect interest by close association indirect interest that is an indirect financial interest indirect interest because of conflicting duties indirect interest because of receipt of an applicable gift indirect interest as a consequence of becoming an interested party indirect interest as a result of impact on residential amenity conflicting personal interest
A Councillor who has declared a conflict of interest, must leave the meeting and remain outside the room while the matter is being considered, or any vote is taken. Councillors are also encouraged to declare circumstances where there may be a perceived conflict of interest.
Declarations were dealt with as part of item 1.1.
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1.1
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DECLARATIONS OF CONFLICTS OF INTEREST FOR BUDGET ITEMS
Document Information Author
Peter Davies, Manager Governance
Responsible Officer
Craig Niemann, Chief Executive Officer
Summary/Purpose The purpose of this report is to enable Councillors to formally declare Conflicts of Interest prior to considering the report on the proposed 2012/2013 Budget. Policy Context Legislative Context Section 79C (2) of the Local Government Act indicates that if a budget or revised budget to be approved by Council includes funding for a matter of which a Councillor has a Conflict of Interest, the Councillor is taken not to have a Conflict of Interest for the purposes of approving the budget or revised budget if: a) The Council approved the matter and proposed funding previously; and b) The Councillor disclosed that the nature of the Conflict of Interest when the decision in respect of the funding was originally considered and made. This Section of the Act means that if a Councillor has not previously declared a Conflict of Interest in the allocation in which they have a conflict, prior to considering the Budget, the Councillor will have a Conflict of Interest in the Budget and will therefore need to leave the Council Chamber and not vote on the Budget. This report facilitates Councillors' declaring their Conflicts of Interest prior to considering the Draft Budget, which will then allow Councillors to vote on the Draft Budget. Report A. EDWARD STREET CAR PARK AND EDWARD STREET STREETSCAPE Cr Sandner has a conflict of interest (indirect financial interest) in the Edward Street Car Park Development as he owns property in the vicinity of the car park development. Cr Sandner has also declared a conflict of interest (indirect financial interest) in the streetscape works in Edward Street, which will provide on-street car parking.
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Cr Ruffell declared a conflict of interest (indirect financial interest) in the Edward Street Car Park Development, as she operates a business in the Central Business District of Bendigo. Crs Ruffell and Sandner left the meeting. In the absence of the Mayor, Cr Fyffe assumed the Chair.
RECOMMENDATION (a)
That Council approve the allocation of $2m towards the construction of the Edward Street Car Park Development as part of the proposed 2012/2013 Budget.
(b)
That Council approve the allocation of $500,000 towards the Edward Street streetscape works as part of the proposed 2012/2013 Budget.
MOTION
Moved Cr Reade, seconded Cr Campbell. That Council approve the allocation of $2m towards the construction of the Edward Street Car Park Development as part of the proposed 2012/2013 Budget. CARRIED Cr Ruffell returned to the meeting.
MOTION Moved Cr Reade, seconded Cr Lyons. That Council approve the allocation of $500,000 towards the Edward Street streetscape works as part of the proposed 2012/2013 Budget. CARRIED
Cr Sandner returned to the meeting and resumed the Chair.
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B. WASTE MANAGEMENT AND WORKSPACE AUSTRALIA LIMITED Cr Cox has a conflict of interest in the operation of transfer stations at Goornong, Strathfieldsaye and Heathcote (indirect financial interest) as he is a part-time employee of Future Employment Opportunities who manage these facilities on behalf of Council. Cr Cox has a conflict of interest in the allocation of rental income of $160,000 from the Council-owned factories adjoining the Eaglehawk Eco Centre to Workspace Australia Limited. Workspace Australia Ltd contract Future Employment Opportunities to manage the operation of the factories as business incubators. Cr Cox is a part-time employee with Future Employment Opportunities. Cr Cox left the meeting.
RECOMMENDATION (a)
That Council approve the allocation of approximately $278,000 associated with the operation of the transfer stations at Goornong and Strathfieldsaye and the Heathcote Landfill, awarded through a tender process, as part of the proposed 2012/2013 Budget.
(b)
That Council approve the allocation of $131,504 to Workspace Australia Ltd from the rental income of the WorkSpace built and Council-owned factories, as part of the proposed 2012/2013 Budget.
RESOLUTION Moved Cr Fyffe, seconded Cr Phillips. That the recommendation be adopted. CARRIED
Cr Cox returned to the meeting.
C. BENDIGO AGRICULTURAL SHOW SOCIETY Cr Reade has a conflict of interest in an allocation to the Bendigo Agricultural Show Society (BASS) and towards the operation of the Bendigo Exhibition Centre which is located on the site managed by the BASS (by close association) as his father is on the governing body of the BASS.
Cr Reade left the meeting.
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RECOMMENDATION (a)
That Council approve a contribution of $175,000 to the Bendigo Agricultural Show Society towards the construction of a new exhibition building in the 2012/2013 Budget.
(b)
That Council approve an allocation of $35,000 net cost for the operation of the Bendigo Exhibition Centre in the 2012/2013 Budget.
RESOLUTION Moved Cr Phillips, seconded Cr Campbell. That the recommendation be adopted. CARRIED Cr Reade returned to the meeting.
D. HARGREAVES MALL Cr Ruffell has a conflict of interest (indirect financial interest) in the Hargreaves Mall as she operates a business in the Hargreaves Mall. Cr Ruffell left the meeting. RECOMMENDATION That Council approve an allocation of $100,000 for activities and $200,000 for screens in the Hargreaves Mall as part of the proposed 2012/2013 Budget.
RESOLUTION Moved Cr Reade, seconded Cr Phillips. That Council approve an allocation of $100,000 for activities and $200,000 for a screen in the Hargreaves Mall as part of the proposed 2012/2013 Budget and that there be consultation with business and the wider community about the screen and the completion of a detailed report to Council prior to the implementation. CARRIED Cr Ruffell returned to the meeting. 9
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1.2 PROPOSED BUDGET FOR THE MUNICIPAL YEAR ENDING 30 JUNE 2013 Document Information Author
Marg Allan, Director Organisation Support
Responsible Marg Allan, Director Organisation Support Director
Summary/Purpose The report recommends that Council give public notice of its intention to adopt a budget for the financial year commencing 1 July 2012 and ending 30 June 2013. Policy Context Council Plan Reference: Council Plan 2009 – 2013 (2011) states: 4.1 Delivery of responsible financial management and business planning practices to ensure long term sustainability. Background Information In accordance with: • Section 127 of the Local Government Act 1989, Council must prepare a budget for each financial year commencing 1 July and • Section 158 of the Local Government Act 1989, the Council must declare the amount it intends to raise by general rates. Report A Financial Plan for the years 2012/2013 to 2015/2016, included in the Strategic Resource Plan of the Council Plan, has been developed to assist Council in adopting a budget within a longer term financial framework. The key objective of the Financial Plan is to achieve the Council's strategic objectives, while ensuring financial sustainability in the medium to long term. The 2012/13 budget has been developed to facilitate the achievement of the strategic objectives and strategies included in the 2009/2013 Council Plan. Prior to the preparation of the budget, a community forum was held at which information was provided to community organisations regarding accessing funding from the City of Greater Bendigo (CoGB). The budget principles were determined by Council at its meeting on 25 January 2012 and have been utilised in the formation of the budget.
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In preparing the 2012/2013 budget, a number of external influences have been taken into consideration because they are likely to impact on the services delivered by Council in the budget period. These external influences are: • Constrained Federal and State Government fiscal environment • The increasing regulatory environment which requires City of Greater Bendigo to apply resources to meet legislation standards specifically: o The increase in the levy which City of Greater Bendigo is required to pay to the Environment Protection Authority for the disposal of waste to landfill o The impact of carbon price related to the disposal of waste to landfill o Expected substantial increase in utility costs o Changes in emergency management requirements o The increased environmental standards relating to waste management impacting on the future development of the landfill site o Changes to Child Care Centre regulations requiring higher staff to child ratios. There are a number of internal influences which have had a significant impact on the preparation of the 2012/13 Budget being: • • • • • • • • • •
Prioritisation by Council of several large capital works projects that will require increased funding both through rate revenue and loan borrowings Recognition that the achievement of Strategic Objectives must allow for the organisational capacity to deliver them in an environment of limited financial resources and the availability of appropriately skilled staff Additional staffing required to meet service requirements Investment in developing workforce capability The requirement to address the renewal gap caused by ageing infrastructure by funding capital renewal and upgrades Introduction of a 1% efficiency target on operations Improvement to on-line presence through website development Commitment to increased service standards regarding tree clearances in rural and urban roadsides Increased effort in drainage maintenance and upgrade of drainage assets Introduction of a higher quality road resheeting program.
The proposed budget has been prepared in accordance with relevant statutory requirements including the Local Government (Finance and Reporting) Regulations 2004. The key features of the proposed budget are:
1.
Capital and Major Works of $53.6M including: • • • • • • •
Road Construction Program ($11 million) Drainage ($5.4 million) Footpaths ($1.1 million) Edward St car park and commercial development ($2.0 million) Bendigo Art Gallery Extension ($6.5 million) Bendigo Library Redevelopment ($6.5 million) Recreation Facilities ($3.1 million) 11
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2.
An operating surplus of approximately $14.38M including capital revenue of approximately $11.65M.
3.
An increase in total income of Rates and Municipal Charge of 5.50%.
4.
An increase in Garbage charge of 11.4% and the Recycling charge of 2.6%.
5.
Repayment of debt of approximately $2.14M.
6.
An amount of $79.7M to be raised by general rates, municipal charge and service charges as follows: General Rates Municipal Charge Service Charges
7.
$ 63,877,710 $ 3,369,729 $ 11,128,376
The budget includes differential rates to be declared as follows: Residential Business A (Urban/non-CBD) Business B (Rural areas) Business C (CBD) Farm Land Vacant Land
8.
In accordance with the Cultural and Recreation Lands Act 1963, the following be declared: Class 1 Class 2 Class 3 Class 4 Class 5
9.
0.353% of Capital Improved Value 0.660% of Capital Improved Value 0.640% of Capital Improved Value 0.690% of Capital Improved Value 0.308% of Capital Improved Value 0.433% of Capital Improved Value
0.1765% of Capital Improved Value 0.08825% of Capital Improved Value 0.0353% of Capital Improved Value $258.00 $359.00
The Municipal Charge will be $64.80 for each rateable property (or part) in respect of which a Municipal Charge may be levied. The Municipal Charge has been reduced from $97.20 to $64.80 which is a further 25% reduction on the 2010/11 charge. This reduction directly benefits ratepayers of lower valued properties.
10. Services Charges to be declared as follows: Garbage Charge 240 Litre Bin Garbage Charge 120/140 Litre Bin Garbage Charge 240 Litre Bin (other Commercial) Garbage Charge 120/140 Litre Bin (other Commercial) Recyclable Garbage Charge Additional Recyclable Garbage Charge (per bin) Garbage Charge (Business Areas) One Day per Week Garbage Charge (Business Areas) Two Days per Week
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$ $ $ $ $ $ $ $
219.00 128.00 240.90* 140.80* 58.50 45.00 240.90* 481.80*
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Garbage Charge (Business Areas) Three Days per Week Garbage Charge (Business Areas) Five Days per Week Garbage Charge (Business Areas) Seven Days per Week
$ 722.70* $ 1,204.50* $ 1,686.30*
* Includes GST Priority/Importance: High Commencement Date: This budget comes into effect on the date it is adopted by Council. The planned date is 25 July 2012. Consultation/Communication Internal Consultation: Prior to the preparation of the budget, the Council adopted the budget principles. These principles were utilised by unit managers to guide the preparation of service unit plans and budgets for 2012/13. The budget has been prepared by the Systems and Management Accounting Unit with extensive input from Councillors, Executive Management Team and Managers. External Consultation: The Council is required to give public notice of its intention to declare the rate and adopt the budget. Section 223 of the Local Government Act provides that any person can make a submission to Council for consideration in respect to the budget within a 28 day period of formal notification. Council must hear any person requesting to be heard in respect to their submission. Formal notification of the budget will be given in the Bendigo Advertiser on 2 June 2012. Submissions will close on 29 June 2012. During the public exhibition process, the budget will also be available for inspection at the City of Greater Bendigo offices and on the City of Greater Bendigo’s website being www.bendigo.vic.gov.au. Publicity will be undertaken in the local media during the exhibition period. Conclusion As soon as practicable after Council has prepared its budget, the Council must advertise that the budget has been prepared. The notice must: (a) state that a person has a right to make a submission under Section 223 of the Local Government Act 1989 on any proposal contained in the budget. (b) advise that copies of the budget are available for inspection at the Council's main office and any district office during normal business hours for at least 28 days after the publication of the public notice.
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As formal documentation has now been prepared, the Council should proceed with the adoption of the proposed budget for the purpose of public advertisement and the consideration of public submissions closing on Friday 29 June 2012. Resource Implications The formal budget documentation details the resources required and applied to deliver services programs operations and capital projects during 2012/2013. Attachments 1.
Proposed budget document included under separate cover.
RECOMMENDATION That the Greater Bendigo City Council, having considered the 2012/2013 Proposed Budget resolve: 1.
That the budget, annexed to this resolution and initialled by the Mayor for identification, be the budget prepared for the 2012/2013 financial year for the purposes of Section 127 of the Local Government Act 1989 to be presented to the Council for adoption prior to 31 August, 2012.
2.
To give public notice of the Proposed Budget in accordance with Section 129 of the Local Government Act, and make available for public inspection the information required by the Local Government Act 1989 (as amended) and the Local Government (Finance and Reporting) Regulations 2004.
3.
To display the Proposed Budget at City of Greater Bendigo offices and on the City of Greater Bendigo website.
4.
To receive submissions on the budget until close of business on Friday 29 June 2012.
5.
To appoint a Committee of the Whole Council to consider any submissions received on the Proposed Budget on Wednesday 4 July 2012, at a time to be advised, in the Reception Room at the Bendigo Town Hall.
6.
To implement a differential rate to be struck as follows: Residential Business A (Urban/non-CBD) Business B (Rural areas) Business C (CBD) Farm Land Vacant Land
0.353% of Capital Improved Value 0.660% of Capital Improved Value 0.640% of Capital Improved Value 0.690% of Capital Improved Value 0.308% of Capital Improved Value 0.433% of Capital Improved Value
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7.
In accordance with the Cultural and Recreation Lands Act 1963 the following be declared: Class 1 Class 2 Class 3 Class 4 Class 5
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Special Meeting - 30 May 2012
0.1765% of Capital Improved Value 0.08825% of Capital Improved Value 0.0353% of Capital Improved Value $258.00 $359.00
The Municipal Charge will be $64.80 for each rateable assessment, in respect of which a Municipal Charge may be levied.
10. Service Charges to be declared as follows: Garbage Charge 240 Litre Bin Garbage Charge 120/140 Litre Bin Garbage Charge 240 Litre Bin (other Commercial) Garbage Charge 120/140 Litre Bin (other Commercial) Recyclable Garbage Charge Additional Recyclable Garbage Charge (per bin) Garbage Charge (Business Areas) One Day per Week Garbage Charge (Business Areas) Two Days per Week Garbage Charge (Business Areas) Three Days per Week Garbage Charge (Business Areas) Five Days per Week Garbage Charge (Business Areas) Seven Days per Week
$ 219.00 $ 128.00 $ 240.90* $ 140.80* $ 58.50 $ 45.00 $ 240.90* $ 481.80* $ 722.70* $ 1,204.50* $ 1,686.30*
* Includes GST
RESOLUTION Moved Cr Sandner, seconded Cr Reade. That the recommendation be adopted. CARRIED There being no further business, the meeting closed at 7:28 pm.
Confirmed:
June 13, 2012
Chairman 15