NOTIICE OF MEE ETING hereby given that a Special S Me eeting of th he Devonp port City C Council will be held in n Notice is h the Coun ncil Cham mbers, 44--48 Best SStreet, De evonport, on Mond day 23 Ju une 2014,, commenc cing at 6:00pm.
QUA ALIFIED PERS SONS dance with h Section 65 of the Local Go overnmentt Act 19933, I confirm m that the e In accord report in this agend da contaiins advice e, informattion and recommen ndations given by a person w who has the t qualifications o or experie ence nece essary to give such advice,, informatio on or recom mmendatio on.
Paul Westt GENERAL MANAGER R 014 19 June 20
AGENDA FOR A SPECIAL MEETING OF DEVONPORT CITY COUNCIL HELD ON MONDAY 23 JUNE 2014 AT THE COUNCIL CHAMBERS AT 6:00PM Item
Page No.
1.0
APOLOGIES
2.0
DECLARATIONS OF INTEREST
3.0
GENERAL MANAGER'S REPORT .................................................................... 4
3.1
Annual Plan and Budget Estimates - 2014/15 (D330777) ......................................................... 4
PAGE 4 m on 23 June J 2014 Report to special Council meeting
3.0
G GENERAL MANAG GER'S REP PORTS
3.1
A ANNUAL PLAN P AN ND BUDG GET ESTIM MATES - 2014/15 2 File: 29153 D330777 7
RELEVANT PORTFOLIO General M Manager RELEVANCE TO COUNCIIL’S PLANS & POLICIES Council’s Strategic Plan P 2009-2 2030: Strattegy 5.5.1
Provide financial s ervices to support Council's C o perations and meett reporting g and acco ountability y requireme ents
SUMMARY nd Budgett Estimatess The purpo ose of this report r is to o present C Council witth the Annual Plan an for the 2014/15 finan ncial year, for consid eration. ovided to assist Cou ncil in determining the rates a nd charge es that are e The reporrt is also pro 4/15 financ cial year. to apply ffor the 2014 ual Plan an nd Budgett Estimatess document has bee en circula ted underr separate e The Annu cover. It is alsso available for public viiewing on n the C Council website w att www.dev vonport.tass.gov.au, th he Devonp port LINC or o at the Ciity Offices.
BACKGROUUND Council h has develo oped the 2014/15 o operationa al budget, capital w works and fees and d charges through a Workshop W process p in recent mo onths. ource for Council C is i ts rate inco ome, whic ch will be a approximattely 69 perr The main revenue so cent of Council’s total revenues for the ffinancial ye ear.
ESTIMATED D INCOM ME % 6% 2%
Rates andd Service Ch harges
6%
Fees and User Chargges Grants ‐ O Operating
17%
Investme nt Revenue e 699%
ITEM 3.1
Other Revvenue
PAGE 5 Report to special Council meeting on 23 June 2014
Council’s budgeting process reflects a full accrual based budget which is in line with its statutory requirements. Council’s Annual Plan and Budget have been prepared taking into account the best practice guide for local government budgeting developed by the Institute of Chartered Accountants. The following financial statements have been included within the Annual Plan:
Estimated Statement of Comprehensive Income (Profit & Loss)
Estimated Statement of Financial Position (Balance Sheet)
Estimated Statement of Cash Flows
STATUTORY REQUIREMENTS The Local Government Act 1993 requires that the General Manager must prepare estimates of Council’s revenues and expenditure for each financial year. Estimates are to contain details of the estimated: (a)
revenue of the council;
(b)
expenditure of the council;
(c)
borrowings by the council; and
(d)
capital works of the council.
Section 71 of the Act requires Council to adopt an Annual Plan each year. The Annual Plan is to be: (a)
consistent with the strategic plan; and
(b)
include a statement of the manner in which the Council is to meet the goals and objectives of the strategic plan; and
(c)
include a summary of the estimates adopted under section 82; and
(d)
include a summary of the major strategies to be used in relation to the Council’s public health goals and objectives.
Part 9 of the Local Government Act 1993 provides Council with the ability to determine the rates and charges that may be applied to properties within its municipal area. The Act requires that rates must be set by Council not earlier than 1st June and not later than 31st August. Amendments to the Local Government Act 1993 in 2013 identified the following principles in relation to making or varying rates:
86A. General principles in relation to making or varying rates: (1)
(2)
A council, in adopting policies and making decisions concerning the making or varying of rates, must take into account the principles that – (a)
rates constitute taxation for the purposes of local government, rather than a fee for a service; and
(b)
the value of rateable land is an indicator of the capacity of the ratepayer in respect of that land to pay rates.
Despite subsection (1), the exercise of a council’s powers to make or vary rates cannot be challenged on the grounds that the principles referred to in that subsection have not been taken into account by the council. ITEM 3.1
PAGE 6 Report to special Council meeting on 23 June 2014
DISCUSSION The Annual Plan puts into words the financial elements that are contained within the Operational Budget and the Capital Works Program and forms an integral part of the reporting mechanism when Council reports its results, achievements and ambitions to the community at its Annual General Meeting. Council’s 2014/15 budgeted net operating surplus before depreciation expense and capital related income, is estimated to be $8,865M, an improvement of $760K on the 2013/14 forecasted result. The overall estimated result for the 2014/15 year is a breakeven position, which includes depreciation expense of $8,865M. Council’s Audit Panel at a recent meeting asked questions regarding the proposal by Council to have a zero based rate increase, a breakeven result and not increasing the amount payable by the higher valued residential properties. Concerns were raised about the impact that a zero based rate increase was likely to have on the Council’s adopted Long Term Financial Plan. Further, the Audit Panel Chairman indicated that in his opinion Council should always increase its rates by at least CPI and also continue to use the valuation system as a measure of a ratepayers ability to pay (ie move towards no rate cap for the higher valued properties). Council has adopted a Long Term Financial Plan. The Long Term Financial Plan (LTFP) covers a 10 year planning horizon to 30 June 2023. The LTFP is an important part of Council’s overall financial management and sustainability framework. The following table details the net operating results for each of the financial years covered by the LTFP. The result achieved in 2011/12, 2012/13, the forecasted outcome for 2013/14 and Council’s 2014/15 budget is also outlined. Year
Long Term Financial Plan Revenue Expenses Net '000 '000 '000
Variance
Actual / Forecast / Budget Revenue Expenses Net '000 '000 '000
748
2011-12
34,194
33,446
2012-13
35,525
35,508
2013-14
35,880
36,850
(970)
36,354
2014-15
36,795
37,576
(781)
37,941
2015-16
36,496
37,682
(1,186)
0
2016-17
36,525
37,920
(1,395)
0
2017-18
36,559
38,147
(1,588)
0
2018-19
36,605
38,225
(1,620)
0
2019-20
36,616
38,407
(1,791)
0
2020-21
36,640
38,666
(2,026)
0
2021-22
36,720
38,936
(2,216)
0
2022-23
36,800
39,264
(2,464)
0
17
34,096
33,348
35,038
34,247
$'000
36,988 37,941
748
0
791
774
(634)
336
0
781
Council is aware that moving forward it had included an increasing deficit result on operational activities each year through to 2023 in its LTFP. Council will be reviewing its LTFP following the completion of its 2014 audit process. The LTFP as it currently sits indicates that Council may not be sustainable in the longer term particularly as it is projecting those increasing deficits. This is a real issue that Council needs to come to terms with and will be vital in the future review of the LTFP and the development of a Financial Management Strategy.
ITEM 3.1
PAGE 7 Report to special Council meeting on 23 June 2014
The review of the LTFP will need to take into consideration how those projected deficits can be reined in over time and will include reviewing the service models and delivery to identify savings. Council’s 2014/15 budget includes additional revenue of $1.1M over the figure included in the LTFP, whilst the expenditure has only increased $365K. A significant amount of the additional revenue is from the income that Council will receive from properties it has purchased in relation to the LIVING CITY project. When taking all of these factors into consideration Council also needs to be mindful of the community’s capacity to continually absorb rate increases. Continually increasing rates is also not sustainable, particularly in difficult economic times. The General Rate increases and the total rating revenue increase in dollars for the past six (6) years was as follows: Year
2008/09 (actual) 2009/10 (actual) 2010/11 (actual) 2011/12 (actual) 2012/13 (actual) 2013/14 (forecast) 2014/15
% Increase (Avg. General Rate only)
Total rates revenue
Increase from previous year
Increase from previous year
‘000
‘000
%
5.0%
19,383
-
-
5.0%
20,666
1,283
6.62%
5.0%
22,233
1,567
7.58%
5.0%
23,836
1,603
7.21%
1.8%
25,019
1,183
4.96%
1.6%
26,018
999
3.99%
0%
26,228
210
0.80%
During the six year period outlined in the table above Council’s total rating revenue (inclusive of supplementaries) has increased by around 33 per cent. CPI over the same period has increased around 15 per cent. In comparing data published by the Tasmanian Audit Office, Devonport in 2013 was one of the highest rating councils in relation to residential properties. A summary of the rating indicators identifies the following: Rating 2012/13
Ta s ma ni a n Avera ge Devonport
Central Coast
Burnie
$
$
$
$
Average rate per rateable valuation
1,326
2,091
1,211
2,039
Rate revenue per head of population
869
973
576
979
Operating Costs per rateable valuation
2,491
2,975
2,093
3,956
Operating grants per head of population
395
87
181
201
These indicators demonstrate that Devonport is a relatively high rating Council with only Hobart having a higher average rate per rateable valuation. The decision by Council to have a zero based rating increase in the 2014/15 financial year is a starting point to correcting this apparent imbalance. The Annual Plan whilst including statements required in accordance with the Act also includes a number of appendices including: ITEM 3.1
PAGE 8 Report to special Council meeting on 23 June 2014
Appendix A – Estimated Borrowings Schedule
Appendix B - Capital Works Program
Appendix C – Making of Rates and Charges
Appendix D – List of Fees & Charges
Operational Budget Estimated Statement of Comprehensive Income identifies: 2014/15
2013/14
2013/14
2012/13
Budget
Forecast
Budget
Actual
'000
'000
'000
'000
Income Rates & Service Charges Fees and User Charges #1
26,228
26,023
25,838
25,020
6,452
5,986
6,223
5,371
Grants - Operating #2
2,198
1,270
1,170
2,170
Contributions - Operating Investment Revenue #3
52
83
57
59
2,098
2,181
2,041
2,324
913
811
551
863
Other Revenue Total Income
37,941
36,354
35,880
35,807
Expenses Employee Benefits Materials and Services #4
12,110
12,175
12,682
12,190
11,521
10,803
10,218
9,537
Depreciation Financial Costs #5
8,865
8,918
9,028
8,737
1,255
1,103
1,103
710
Levies and Taxes #5
3,033
2,830
2,819
2,648
Other Expenses
1,157
1,159
1,000
1,194
Total Expenses
37,941
36,988
36,850
35,016
0
(634)
(970)
791
2,212
7,028
5,034
4,701
(1,591)
(4,747)
(1,338)
300
0
429
Total Capital Items
921
2,281
5,034
3,792
Net Surplus / (Deficit)
921
1,647
4,064
4,583
Surplus / (Deficit) Capital Items Capital Grants and Contributions
Loss on the Disposal of Assets Share of Profits from Associates
#1 – Fees and User Charges have increased by nearly 7.78% as a result of the income Council will now receive from the commercial tenants of buildings that have been acquired in relation to the LIVING CITY project. #2 – Federal Government has reverted to the system of paying the Financial Assistance Grants in the year in which they apply whereas for the previous years an advance payment equal to 50% of the grant was paid in June. #3 – Investment revenue has decreased due to less expected interest revenue being received by Council as a result of less cash being on hand for investment. #4 – Materials and Services have increased due to normal cost increases in items purchased by Council and also to allow for costs associated with maintaining the buidlings purchased by Council in relation to the LIVING CITY project. First full year of operations of the new Aquatic Centre. #5 – Levies and Taxes allow for an increase in taxes imposed on Council by the State Government, particularly land tax relating to the buildings acquired by Council for LIVING CITY.
ITEM 3.1
PAGE 9 m on 23 June J 2014 Report to special Council meeting
It should be noted d that the forecast for the 20 013/14 fina ancial yea ar is a co onservative e estimate and it is anticipated a d that the ere may be b a furthe er improve ement on the $634K K estimated gure is alsso likely to d operating deficit before b cap pital itemss. The nett surplus fig o change a as a result of o the end of year prrocesses re elating to asset a valua ations and finalisation f n of projectts currently y held in the e work in p progress ac ccount. A graphic cal represe entation off the estim mated conssolidated revenues r a and expen nditures forr the 2014/15 financia al year, wh hen compa ared against the fore ecasted re esult for 2013/14 and d the actua al result in 2012/13, 2 is as follows:
$ Income
Incom me Anallysis 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 ‐
Rates & Utility Charges
Fees & Charges
Grants
Contributi Dividends ons and Other Investme nt Income 83,046 2,180,550
Other Income
F.Cast 13/14 26,023,150 0 5,985,658
1,270,000
Bud. 14/15
26,228,167 7 6,451,709
2,198,000
52,500
2,098,043
912,853
Act. 12/13
25,019,418 8 5,371,223
2,170,319
59,114
2,325,360
863,374
811,323
$ Expenditure
Expendi E iture An nalysis 1 14,000,000 1 12,000,000 1 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 ‐ (2,000,000)
Finaance Leviess & Other Employe Material M Internal Deepreci aation Co osts Taxe es Expensee Charges e s & S s Benefits Services F.Cast 13/14 12,174,87 11,768,37 8,9917,800 1,102 2,559 2,829,7 726 1,158,5000 (965,658) Bud. 14/15
12,110,07 12,397,54 8,8865,282 1,254 4,522 3,032,5 588 1,156,9336 (875,675)
A Act. 12/13
12,189,99 10,590,91 8,7736,525 710,617 2,648,4 419 1,194,7661 (1,054,162 2
Capital W Works The total capital works w budg get for 201 14/15 is $12.373M which includ des carrie ed forward d projects o of $1.924M.. Council w will continu ue its focuss on the LI VING CITY Y plans in the t forthco oming yea ar and hass committe ed capital funding in n excess o of $4.112M M towards this outco ome. The e planning g phase of LIVING CITY is draw wing to a close and d the final master p lans will be b publicly y released iin early Au ugust 2014. Once th he final pla ans have been b endo orsed by th he Councill the next p phase will be implem mentation. To achiev ve implementation th he Counciil will need d ITEM 3.1
PAGE 10 Report to special Council meeting on 23 June 2014
to invest the majority of the funding allocated in the 2014/15 capital budget towards the preparation of detailed plans and development approvals. Council is aware that it also has a responsibility to adequately provide funding towards the replacement/rehabilitation of its assets. This year’s budget will see $4.6M invested in replacement/rehabilitation projects. This amount is approximately 52.3% of the total value of Council’s depreciation expense. In future years there will be a need for Council to focus its capital budget emphasis on ensuring that a greater percentage of capital expenditure is allocated to renewals and replacements. SUMMARY - FUNCTIONAL AREA
$’000
Open Space & Recreation
1,433
Facilities
792
Stormwater
494
Transport
4,943
LIVING CITY
4,112
Plant & Equipment & Information Tech.
556 43
Other TOTAL PROPOSED CAPITAL WORKS
$12,373 (1,924)
Carried Forward Funds 2014/15 CAPITAL WORKS PROGRAM
$10,449
Capital works are funded from a number of sources which are identified in the table below. CAPITAL FUNDING - STATEMENT
$’000
Carried Forward
1,924
Operational Funds Generated 2014/15
8,538
External Grant Funding
1,911 $12,373
TOTAL
Rates and Charges In developing its budget Council takes into account the Consumer Price Index and the Local Government Association of Tasmania’s (LGAT) Council Cost Index. The CPI increase for the 12 month period ended 31 March 2014 was 2.80% and the LGAT Council Cost Index increased by 2.63%. Despite these external monitored increases, Council has determined that the general rate to apply for 2014/15 will be maintained at the same level as that which applied in the previous year – a zero percent rate increase. Kerbside garbage and recycling collection services are provided within the City. Once again the Council has been able to maintain the current level of rates in relation to its waste collection services. During the forthcoming year the service levels and the future delivery of waste management within Devonport is something that the Council will review.
ITEM 3.1
PAGE 11 Report to special Council meeting on 23 June 2014
The Fire Service Levy is determined by the State Fire Commission and Council is required under the Fire Services Act 1979 to collect the levy. There has been a small increase in the fire service levies applied across the City. Council has no control over the setting of the Fire Levy, this is a State Government charge which under legislative provisions Council is obligated to collect on behalf of the State Fire Commission. A summary of the rates for 2014/15 in comparison to those charged in the 2013/14 is outlined in the table below: Rate General Rate – all land General Rate varied for land which is used or predominately used for primary production General Rate varied for land separately assessed and is predominately used as a residential dwelling (and where the number of dwellings on the land does not exceed one (1) Waste Management Service Rate – all land expect that which has a single residential dwelling on it Minimum Charge Waste Management Service Charge where the predominant use is for a residential dwelling and there is only one dwelling on the land Fire Service Levy - Devonport Urban Fire District - Forth/Leith Fire District - General Land Fire District - Minimum Levy
Proposed 2014/15 14.2950c
Actual 2013/14 14.2950c
Increase Cents in$ Nil
Increase % 0%
6.9928c
6.9928c
Nil
0%
9.7225c 1.8392c
9.7225c 1.8392c
Nil
0%
$20
$20
Nil
0%
$224
$224
Nil
0%
1.2685c 0.4525c 0.3279c $37
1.2550c 0.4507c 0.3074c 36
0.0135c 0.0018c 0.0205c
1.08% 0.40% 6.66% 2.77%
The rating resolution also provides that pursuant to Section 88A of the Act, the Council has determined to set a maximum percentage increase in the general rate component of zero per cent (0%) on all rateable land within the municipal area. This essentially means that the higher valued properties will not incur any increase over and above that which they paid in the previous year. Council will be subjected to a municipal wide revaluation during the 2014/15 financial year. In accordance with its legislative requirements the new valuations will be required to be used for determining rates in the 2015/16 year. As part of the revaluation process the rating methodologies used by Council will need to be considered including the potential move to a revised rating system using capital value as the basis. This review will also need to consider specific issues relating to area rating, fixed charge component, and the overall impact on rate levels more generally. Fees and Charges All of Council’s fees and charges have been reviewed as part of the budget process. A number of increases have been included in the budget relating to environmental, health, planning and building where Council is required to provide statutory services essentially on ITEM 3.1
PAGE 12 Report to special Council meeting on 23 June 2014
a cost recovery basis. Some increases have also been applied to cemetery, transfer station and the Devonport Entertainment and Convention Centre. The Council has determined that there will be zero increases applied to parking, dog registrations, recreation facilities, the Bass Strait Maritime Centre and the Julie Burgess. The list of fees and charges to be applied during the 2014/15 financial year as determined by Council has also been provided within the Annual Plan document.
COMMUNITY ENGAGEMENT As part of the budget process an information pamphlet will be included with the rates notice. A media release will be issued following Council’s consideration of the budget alerting the community to the setting of the rates and detailing some of the projects and programs which underpin the budget.
FINANCIAL IMPLICATIONS The development and adoption of the Budget Estimates and Annual Plan is an essential function of Council. To retain the current operating result, any subsequent reduction in income or increase in expenditure must be balanced by a corresponding adjustment in other items. The associated rating resolutions are an essential element of the Annual Plan and budget process.
RISK IMPLICATIONS Should the Estimates not be approved within the anticipated timeframe, it may not be possible to issue the rates notices in sufficient time to comply with the normal deadline for the first instalment. This would likely adversely impact both upon anticipated interest receivable and the cash flow. To ensure that the budget estimates and annual plan are dealt with in a logical sequence there are twelve (12) separate recommendations provided. Should there not be support for particular aspects of the budget, which will impact on the Council’s capacity to deliver programs or capital works, decisions will need to be made on ‘what to cut’ to ensure that there are sufficient funds to undertake the desired works. With this in mind the order of the recommendations were determined.
CONCLUSION Council must continue to develop strategies to ensure that its future operational budgets and capital programs are sufficient to meet the demand for the delivery of services to the community. In particular the aspect of asset renewals, replacement and upgrades will need to continue to be a focus of Council moving forward. Council must adapt to an ever-changing environment to effectively and efficiently meet the current and future demands of its community. The Annual Plan provides a benchmark on which the Council’s performance can be measured. The Annual Plan including the Estimates and Capital Works Program will form the keystone of Council’s activities for the 2014/15 financial year. Whilst the Estimates detail anticipated operational income and expenditure, it is recommended the General Manager be authorised to make any minor modifications within the overall allocations that may be necessary for the efficient operations of that activity or service. All significant changes will be referred to Council for approval. ITEM 3.1
PAGE 13 Report to special Council meeting on 23 June 2014
ATTACHMENTS Nil
RECOMMENDATIONS 1.
2.
ANNUAL PLAN That in accordance with Section 71 of the Local Government Act 1993 (as amended) Council adopts the Annual Plan for the 2014/2015 financial year and instructs the General Manager to: (a)
make a copy of it available for public inspection at the Council’s Offices and on the website; and
(b)
provide a copy of it to the Director of Local Government and to the Director of Public Health.
ANNUAL ESTIMATES (REVENUE AND EXPENDITURE) That: (a)
in accordance with Section 82 of the Local Government Act 1993 (as amended) the Council by absolute majority adopts the estimates of revenue and expenditure (excluding estimated capital works) for the 2014/2015 financial year as detailed in the Annual Plan;
(b)
in accordance with section 82(6) of the Act the Council, by absolute majority, authorises the General Manager to make minor adjustments up to $50,000 to any individual estimate item as he deems necessary during the 2014/2015 financial year provided that the total of the Estimates remains unaltered.
3.
RATES RESOLUTION – PART 1(A) Pursuant to Section 90 of the Local Government Act 1993 (as amended) the Council makes a General Rate component for land within the municipal area for the period 1 July 2014 to 30 June 2015 of 14.2950 cents in the dollar of assessed annual value, in respect of all rateable land except land which is exempt pursuant to Section 87 of the Local Government Act 1993.
4.
RATES RESOLUTION – PART 1(B) Pursuant to Section 107 of the Local Government Act 1993 (as amended), the Council by absolute majority hereby varies the General Rate component (as previously made) for land within the municipal area which is used or predominantly used for primary production to 6.9928 cents in the dollar of assessed annual value of such rateable land.
5.
RATES RESOLUTION – PART 1(C) Pursuant to Section 107 of the Local Government Act 1993 (as amended), the Council by absolute majority hereby varies the General Rate component (as previously made) for land within the municipal area which is separately assessed and is predominantly used as a residential dwelling, and where the number of residential dwellings does not exceed one (1) on such land, to 9.7225 cents in the dollar of assessed annual value of such rateable land.
ITEM 3.1
PAGE 14 Report to special Council meeting on 23 June 2014
6.
RATES RESOLUTION – PART 1(D) Pursuant to Section 88A of the Local Government Act 1993, the Council determines by absolute majority to set a maximum percentage increase in the general rate component of 0% on any rateable land within the municipal area.
7.
RATES RESOLUTION – PART 2 Pursuant to Sections 93, 94 and 95 of the Local Government Act 1993 (as amended), the Council makes the following service rates and service charges for land within the municipal area (including land which is otherwise exempt from rates pursuant to Section 87, but excluding land owned by the Crown to which Council does not supply any of the following services) for the period 1 July 2014 to 30 June 2015: (a)
A service rate for waste management (garbage removal) upon all land to which Council supplies or makes available a garbage removal service of 1.8392 cents in the dollar of the assessed annual value of the land. Pursuant to Section 93(3) Council sets a minimum amount payable in respect of this rate of $20.
(b)
pursuant to Section 107 of the Act the Council, by absolute majority declares that the service rate for waste management (garbage removal) is varied by reference to the use or predominant use of land as follows: i)
8.
for all land which is separately assessed and which is predominantly used as a residential dwelling and where the number of residential dwellings on such land does not exceed one (1), vary the service rate to 0.00 cents in the dollar of the assessed annual value of the land and vary the minimum amount payable to $0.00.
(c)
in addition to the service rate for waste management, the Council makes a separate service charge for waste management (garbage removal) for all land to which Council supplies or makes available a garbage removal service of $224.
(d)
pursuant to Sections 94(3) and 107 of the Act, the Council declares by absolute majority that the service charge for waste management (garbage removal) is varied to $0.00 for all land which is liable to pay the service rate for waste management (as previously made at Part (a) of this resolution).
RATES RESOLUTION – PART 3 Pursuant to Section 93A of the Local Government Act 1993 (as amended) and the provisions of the Fire Service Act 1979 (as amended), the Council makes the following rates for land within the municipal area for the period 1 July 2014 to 30 June 2015: (a)
a Devonport Urban Fire District Rate of 1.2685 cents in the dollar of assessed annual value, subject to a minimum amount of $37 in respect of all rateable land within the Devonport Urban Fire District.
(b)
a Forth/Leith Fire District Rate of 0.4525 cents in the dollar of assessed annual value, subject to a minimum amount of $37 in respect of all rateable land within Forth/Leith Fire District.
(c)
a General Land Fire Rate of 0.3279 cents in the dollar of assessed annual value, subject to a minimum amount of $37 in respect of all rateable land within the municipal area, which is not within the Devonport Urban Fire District, or the Forth/Leith Fire District.
ITEM 3.1
PAGE 15 Report to special Council meeting on 23 June 2014
9.
10.
SEPARATE LAND AND ADJUSTED VALUES In relation to all rates and charges for the 2014/2015 year, as previously made, for the purpose of these resolutions: (a)
the rates and charges shall apply to each parcel of land which is shown as being separately valued in the valuation list prepared under the Valuation of Land Act 2001.
(b)
any reference to assessed annual value includes a reference to that value as adjusted pursuant to Sections 89 and 89A of the Local Government Act 1993 (as amended).
PAYMENT OF RATES AND CHARGES Pursuant to Section 124 of the Local Government Act 1993 (as amended) the rates for 2014/2015 shall be payable in four instalments, the dates by which the rates are due to be paid are: First Instalment
31 August 2014
Second Instalment
31 October 2014
Third Instalment
28 February 2015
Fourth Instalment
30 April 2015
Where a ratepayer fails to pay any instalment within 21 days from the date on which it is due, the ratepayer must pay the full amount owing. Penalties Pursuant to Section 128 of the Local Government Act 1993 (as amended) if any rate or instalment is not paid on or before the date it falls due, a penalty of 5% of the unpaid instalment or part thereof, shall be applied except where the ratepayer has adhered to an approved payment arrangement plan and the total rates are paid in full by 30 April 2015. Remissions Pursuant to Section 129 of the Local Government Act 1993 (as amended) the Council by absolute majority provides a delegation to the General Manager to remit all or part of any rate and/or penalty in accordance with past custom or practice, or resolution of Council, or where it is determined to be in the interest of Council to do so. Supplementary Rates
11.
(a)
Pursuant with Sections 89A, 92 and 109N of the Local Government Act 1993 (as amended) if a supplementary valuation is made of any land prior to 30 June 2015, the General Manager may at his discretion adjust the amount payable in respect of any or all rates for that land for that financial year in line with the new valuation; and
(b)
If a rates notice is issued by the General Manager under sub-clause (a), the amount shown as payable on that notice is due to be paid within 30 days of the date on which that notice is issued.
CAPITAL WORKS PROGRAM That Council pursuant to Section 82 of the Local Government Act 1993 (as amended) adopts the Capital Works Program for the 2014/2015 financial year as detailed in the Annual Plan. ITEM 3.1
PAGE 16 Report to special Council meeting on 23 June 2014
12.
FEES AND CHARGES That in accordance with Section 205 of the Local Government Act 1993 (as amended) Council adopts the Fees and Charges Schedule for the 2014/2015 financial year as detailed in the Annual Plan.
Author: Position:
Paul West General Manager
ITEM 3.1