Description: Maranoa Logo Process

 

Business Paper

 

Special Budget Meeting

 

Wednesday 31 July 2013

 

Roma Administration Centre

 

NOTICE OF MEETING

 

Date: 26 July 2013

 

 

Mayor:                                                    Councillor R S Loughnan

 

Councillors:                                             Councillor J L Chambers

                                                              Councillor R J Denton

                                                              Councillor P J Flynn

                                                              Councillor W M Newman

                                                              Councillor C J O’Neil

                                                              Councillor M L Price

                                                              Councillor D J Schefe

                                                              Councillor W S Wason

 

Chief Executive Officer:                            Julie Reitano

 

Senior Officers:                                       Ms Claire Alexander (Specialist – Strategic Finance)

                                                              Mrs Noela Ward (Specialist – Governance & Organisational Development)

                                                              Mr Tony Klein (Director – Community & Commercial Services)

                                                              Mr Michael Parker (Acting Director – Infrastructure Services)

                                                              Mr Rob Hayward (Director – Development, Facilities & Environmental Services)

 

Officers:                                                  Ms Jane Frith (Coordinator – Corporate Communications)

 

 

Please find attached agenda for the Special Budget Meeting to be held at the Roma Administration Centre on July 31, 2013 at 9.00am.

 

Julie Reitano

Chief Executive Officer

 


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

TABLE OF CONTENTS

Item       Subject

No

 

1            Welcome

 

2            Apologies

 

3            Business

3.1         Presentation of Draft Budget 2013/14 and Draft Forward Estimates 2014/15 to 2022/23................................................................................................................... 2

Prepared by:      Robert Loughnan, Mayor

3.2         Re-Adoption of Revenue Policy...................................................................... 6

Prepared by:      Robert Loughnan, Mayor

3.3         Fees & Charges 2013/14................................................................................. 14

Prepared by:      Robert Loughnan, Mayor

3.4         Revenue Statement 2013/14.......................................................................... 16

Prepared by:      Robert Loughnan, Mayor

3.5         Pensioner Rates Concession Policy........................................................... 19

Prepared by:      Robert Loughnan, Mayor

3.6         Debt (Borrowing) Policy 2013/14.................................................................. 21

Prepared by:      Robert Loughnan, Mayor

3.7         Adoption of Budget 2013/14 & Forward Estimates to 2022/23............. 23

Prepared by:      Robert Loughnan, Mayor

3.8         Draft Operational Plan 2013/14...................................................................... 26

Prepared by:      Julie Reitano, Chief Executive Officer  

 

Closure

 

 


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

MAYORAL Report

Meeting: Special Budget Meeting  31 July 2013

Date: 18 July 2013

Item Number: 3.1

File Number: D13/30987

 

Subject Heading:                     Presentation of Draft Budget 2013/14 and Draft Forward Estimates 2014/15 to 2022/23

Classification:                                  Open Access  

Name of Applicant:                         N/a

Location:                                           N/a

Author:                                               Robert Loughnan, Mayor

 

Executive Summary: 

 

In accordance with 107A of the Local Government Act 2009, I formally request that Council consider the budget material that I presented to Councillors on the 17 July 2013.   

 

By way of background, and as previously advised, the preliminary draft inclusions for the 2013/14 budget were collated by management and staff using the budget parameters as presented to and discussed with Councillors in March 2013.  The Executive Management Team reviewed the draft budget submissions and then presented the information to a series of workshops with Councillors and myself.

 

Councillors reviewed both operational and capital budget submissions for 2013/14, the proposed fees and charges and policies as required by legislation, e.g. Revenue Policy.

 

Sections 169 to 171of the Local Government Regulation 2012 prescribe the requirements for the adoption of Council’s budget. The information that has been presented to you complies with the disclosure requirements for the adoption of Council’s budget.

 

            1.Statement of Income & Expenditure

            2. Statement of Financial Position

            3. Statement of Changes in Equity

            4. Cash Flow Statement

            5. Measures of Financial Sustainability

            6. Schedule of Capital Works and Funding Sources

            7. Change in Rates and Utility Charges

 

 

 

 

 

 

 

The 2013/14 Budget totals $255.8M (excluding carryover projects).  Some key highlights are:

 

·    Capital projects of $58.1M including construction of Stage 1 of the levee bank

·    Major recoverable works such as flood restoration, Main Roads and Santos and Origin  potential contract maintenance works totalling $135M

·    Funded 2013/14 one off projects worth $1.27M

·    Road maintenance works  of $8.0M

·    Salaries and wages including on costs

 

 

Mayor’s Recommendation: 

 

The budget and accompanying material be received and Council consider each section individually.

 

Body of Report:

 

Draft Budget 2013/14

 

The budget material is included in the document presented to Council on 17 July 2013 (electronic pages 345-484);   alternatively Schedules A – M & Revenue Statement documentation.

 

The draft 2013/14 budget delivers a positive operating result of $9.9M. This operating result is used to fund planned capital projects as listed in the capital works program and the balance has been put aside to fund future capital requirements for Council’s business units.

 

Residential rates & services have been increased by 4% with the exception of minimum general rates which is up from $470 to $500.    The modest increase of 4% is in recognition of the significant cost pressures facing our ratepayers while noting that Council is similarly exposed to many of the same cost increases such as the impact of the Council’s Enterprise Bargaining Agreement.

 

Capital works included in this budget totalled $58.1M (Schedule H), of which the majority of the funding comes from external sources amounting to $ 29.2M. This amount excludes any funding projection for carry over projects from 2012/13 financial year.

 

Council this year will carry out major road maintenance works for Main Roads, flood damage restoration works and potential contract works for Santos and Origin. This brings a total of $135M operating revenue to the Council at this year’s budget.

 

 

 

 

 

Section 169 (3) of the Local Government Regulation 2012 requires the Statement of Income and Expenses to include each of the following:

(a) Rates and utility charges excluding discounts and rebates

(b) Contributions from developers

(c)  Fees and charges

(d) Interest

(e) Grants and subsidies

(f)   Depreciation

(g) Finance costs

(h)  Net result

 

The above items are included in the attached Schedule A to Schedule D – Budget Statements.

 

To comply with the Regulation, Council must also publish results against a series of measures of financial sustainability for the budget year and the next nine (9) financial years. This is shown in Schedule E – Sustainability Ratios.

 

National Competition Policy reform provisions contained in the Local Government Act 2009 (the Act) require Council’s nominated ‘business activities’ to apply the competitive neutrality principle to their operations.  Council this year will apply the Code of Competitive Conduct to its building certification and roads activity, as required by Section 47 of the Act and Section 39 of the Regulation 2012.   It is also intended that Council will conduct a full assessment of its business activities in 2013/14 to determine whether these activities are significant business activities and therefore Council should apply the requirements of the Local Government Act 2009 and the Local Government Regulation 2012.

 

Council has presented a Statement of Income & Expenditure 2013/14 for each of its business type activities, please refer to Schedule F.

Consultation (internal/external):

§ Mayor & Councillors

§ Senior Management Team

Risk Assessment (Legal, Financial, Political etc.):

Nil

Policy Implications:

Nil

Financial Resource Implications:

The information presented incorporates both the proposed budget for 2013/14 and forward estimates.    The budget incorporates how Council will fund the provision of services, programs and projects.

 

 

 

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.2.1(a) To instil confidence to Council and other stakeholders in their decision making by developing and implementing financial procedures, processes and methodologies in an environment that promotes integrity and accountability.

Supporting Documentation:

1

Budget material presented to Councillors on 17 July 2013 (Enclosure)

D13/32635

 

 

  


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

mayoral Report

Meeting: Special Budget Meeting  31 July 2013

Date: 26 July 2013

Item Number: 3.2

File Number: D13/32495

 

Subject Heading:                     Re-Adoption of Revenue Policy

Classification:                                  Open Access  

Name of Applicant:                         N/a

Location:                                           N/a

Author:                                               Robert Loughnan, Mayor

 

Executive Summary: 

Council considered the matter of the Revenue Policy at its meeting on 26 June 2013.

 

In accordance with s 169 (2) (c) of the Local Government Regulation 2012, the budget must include the Revenue Policy.    The policy is now submitted for Council’s re-adoption.

 

 

Mayor’s Recommendation: 

That the Revenue Policy for 2013/14 be re-adopted.

 

 

Body of Report:

The purpose of this Revenue Policy is to set out the principles used by Council for:

                                                 

·    Levying rates and charges;

·    Granting concessions for rates and charges;

·    The recovery of unpaid rates and charges; and

·    Cost recovery fees and methods.

 

1.               Policy Purpose

To comply with the requirements of Chapter 4, Part 1 and Part 2 of the Local Government Act 2009 and Section 169 (2) (c) and Section 193 of the Local Government Regulation 2012 by setting out:

 

 

 

 

 

 

 

 

(a)     the principles which Council will apply during the 2013/2014 financial year for

 

§ levying rates and charges;

§ granting concessions for rates and charges;

§ the recovery of unpaid rates and charges;

§ cost-recovery fees and methods;

 

(b)     the purpose of the concessions; and

 

(c)     the extent to which physical and social infrastructure costs for a new development are to be funded by charges for the development.

 

2.         Policy Scope

The Revenue Policy applies to revenue raised by rates, utility charges, fees and charges.

This policy applies to the making, levying, recovery and concessions for rates and utility charges and the setting of regulatory and commercial fees and charges for Council.

3.         Definitions

Council means Maranoa Regional Council

Act  means Local Government Act 2009

Pensioner  means a person who is the holder of a pensioner concession card issued by the department of the Commonwealth responsible for administering the Social Security Act 1991 (Cwlth) or the Veterans’ Entitlements Act 1986 (Cwlth).

Regulation  means Local Government Regulation 2012

All other definitions are as per the Local Government Act 2009 and the Local Government Regulation 2012.


4.         Introduction

       In accordance with the provisions of the Local Government Act 2009 and Local Government Regulation 2012, Council is required to prepare and adopt by resolution a Revenue Policy.

           

 

Council’s Revenue Policy is based on the following principles;

(a)                    Fairness & Equity – by ensuring the consistent application of lawful rating and charging principles without bias;

(b)                    Transparency - by communicating the Council’s charging processes and each ratepayer’s responsibility under the rating system;

 

(c)                    Efficiency - by having a rating regime that is cost effective to administer;

(d)                    Sustainability – to support the financial strategies for the delivery of infrastructure and services identified in Council’s short, medium and long term planning.

(e)                    Flexibility within agreed parameters - by providing payment arrangements to assist ratepayers in meeting their rate commitments

Council will apply these principles when:

§   Making rates and charges;

§   Levying rates and charges;

§   Recovering rates and charges;

§   Granting and administering rates and charges concessions;

§   Charging for local government services and facilities;

§   Charging for business activities (subject to the National Competition Policy);

§   Funding Council infrastructure.

 

5.         Making and Levying of Rates and Charges

            Council’s application of the above principles in making and levying of Rates and Charges for the 2013/2014 financial year are detailed as follows:

5.1    General Rates

General rates are set each year to assist Council in raising sufficient revenue to provide services to the community (exclusive of water, sewerage and cleansing/waste management utilities).

 

 

Council recognises that different categories of land use will generate different needs and requirements for Council services and facilities.  Council also recognises that it will incur a different level of resources expenditure to provide the necessary services and facilities and therefore has opted for a system of differential General Rating to meet its needs.

 

 

5.1.1    Differential General Rates

 

Council considers that the use of differential general rates allows the following factors to be taken into account in determining how the general rate revenue is to be raised which would not be possible if only one general rate were adopted:

 

(a)       the relative effects of various land uses on the requirements for, level of, and the cost of providing Council facilities and services;

(b)       movements and variations in the Unimproved Capital Value (UCV) both within categories and between categories of land use which affect the level of rates and issues such as ‘fairness’ and ‘equity’;

(c)        location and access to services; and

(d)       amount of the Unimproved Capital Value (UCV) and the rate payable.

 

                     To ensure that owners of land across all differential categories contribute equitably to the cost of common services, Council will apply a minimum rate to each differential rating category.

 

 

5.2    Utility Charges – Water, Sewerage and Waste Management Services

 

In general, Council will be guided by the principle of user pays in the making of charges that relate to the provision of water, sewerage and waste management services. 

 

Wherever possible, those receiving the benefits of a utility service will pay for the service received through the relevant utility charge.  Council will annually review its utility charges and other fees for service to ensure that revenues are meeting intended program goals and are keeping pace with the cost of providing the service.

 

5.3    Special and Separate Rates and Charges

Council may consider levying special and separate rates and charges when appropriate, to recover the costs associated with a particular service, project or facility that provides direct or additional benefit to the ratepayers or class of ratepayer.

6.         Granting of Rebates and Concessions

6.1    Guiding Principles

In accordance with Chapter 4 Part 10 of the Local Government Regulation 2012 Council may grant a concession for rates and charges.  In exercising these concession powers Council will be guided by the principles of equity and transparency by:

§ Applying the same treatment to ratepayers with similar circumstances;

§ Making clear the requirements necessary to receive concessions;

 

Consideration may be given by Council to granting a class concession in the event that all or part of the local government area is declared a natural disaster area by the State Government.

 

6.2    The Purpose of Concessions

In accordance with Section 120 (1) of the Local Government Regulation 2012, Council may grant a concession in 2013/2014 for the owner categories, or in some circumstances occupier categories, and properties used for the listed purposes. 


 

(a)       Pensioner Concession

Eligible pensioners as defined in Schedule 8 of the Local Government Regulation 2012 may be granted a concession on general rates.

 

 

(b)       Non-Profit Community Organisation Concession

In accordance with Section 120 (1) (b) of the Local Government Regulation 2012, a concession may be granted if Council is satisfied that the land is used for community purposes and is operated on a not-for-profit basis. 

 

The purpose of these concessions is to encourage and support certain not-for-profit and charitable organisations where the land use is considered to contribute to the health and well being of the community and the social enrichment of residents.

 

(c)       Hardship Concession

Council may grant a concession where it can demonstrate that the payment of the rates or charges will cause extreme hardship to the land owner.

 

(d)       Other Concessions

Council will receive and consider applications from ratepayers where Council is satisfied that the application meets the eligibility criteria as provided for in Section 120(1) of the Local Government Regulation 2012. Applications for concessions under this section will be considered and determined by Council on a case by case basis. 

 

7.         Recovery of Unpaid Amounts of Rates and Charges

Council will exercise its rates recovery powers pursuant to the provisions of Chapter 4 Part 12 of the Local Government Regulation 2012 in order to reduce the overall rate burden on ratepayers, and will be guided by the principles of:

§  Fainess & Equity - by treating all ratepayers in similar circumstances in the same manner; and by making every attempt to follow-up on outstanding rates and charges prior to taking legal action;

§  Transparency – by making clear the obligations of ratepayers and the processes used by Council in assisting them meet their obligations;

§  Efficiency – by making the process used to recover outstanding rates and charges simple to administer and cost-effective.

§  Flexibility – by providing ratepayers with a number of options to meet their rate obligations;

 

8.         Charges for Local Government Services and Facilities

 

With the exception of fees and charges associated with Council’s Business Activities, there are broadly two types of fees and charges:

 


8.1    Cost Recovery (‘Regulatory’) Fees and Charges (s 97 of the Local Government Act 2009)

These are fees under a local law or a resolution, which involve:

 

(a)     an application for the issue or renewal of a licence, permit, registration or other approval under a Local Government Act (an application fee); or

(b)     recording a change of ownership of land; or

(c)     giving information kept under a Local Government Act;

 

A cost recovery fee must not be more than the cost to Council of taking the action for which the fee is charged.

 

 

Whilst Council notes that, pursuant to Section 97 of the Local Government Act 2009 it may introduce a tax component into a regulatory fee in order to achieve a social or other objective, it is not Council’s intention to encompass a tax in any regulatory fee.  Accordingly, Council will not recover more than the cost of administering the regulatory regime.

 

8.2    Other (‘Commercial’) Fees & Charges

Council will apply, as a minimum and as far as practicable, the principle of full cost recovery (including overheads) in setting charges for services and facilities, including community or non-profit organisations.

 

Council may give consideration to charging at less than the full cost of the service / facility when it considers it appropriate to do so in order to achieve social, economic or environmental goals.  In making any such decision the reason for the decision will be clearly set out in the resolution, together with the estimated amount of revenue to be foregone in the subject year.

 

When the service or facility supplied is of a commercial nature, then Council will give consideration to including a ‘return on investment’ element in the charge.  Such consideration will be made on a case by case basis.

 

 

9.         Fees & Charges for Business Activities (Subject to National Competition Policy)

 

In setting charges for a business under National Competition Policy reforms, Council’s pricing strategy will apply full cost pricing principles whilst also meeting other economic, efficiency and social objectives.  Full cost pricing means that on average, prices should fully recover all the relevant costs of supplying a product or service including:

 

(a)       direct costs;

(b)       indirect non-capital costs;

(c)        capital costs (includes return on capital, interest payments, debt guarantee fees and return of capital (depreciation));

(d)       tax equivalent adjustments; and

(e)       other competitive neutrality adjustments.

 

Council may decide to apply charges at less than full cost pricing in order to achieve social, economic, environmental or other objective.  In making any such decision the reason for the decision will be clearly set out in the resolution together with the estimated amount of revenue to be foregone in the subject year.

 

When any such decision is applied to a Commercialised Business Unit, the direction to the Commercialised Business Unit will be recognised as a ‘community service obligation’ and a subsidy shall be paid to the Commercialised Business Unit and that subsidy shall be recognised in the accounts of the Commercialised Business Unit.

10.      Funding of New Development

To minimise the impact of physical and social infrastructure charges on the efficiency of the local economy Council will be guided by the principle of user pays in the making of physical and social infrastructure charges for new development, to the extent permissible by law.  Council may depart from applying this principle if it is determined by Council that it is in the community interest to do so.

11.       Related Policies and Legislation

Local Government Act 2009

Local Government Regulation 2012

 

12.       Associated Documents

Revenue Statement 2013/2014

Fees and Charges Register 2013/2014

 

13.       Policy Review

The Revenue Policy shall be reviewed annually and in sufficient time to allow an annual budget that is consistent with the revenue policy to be adopted for the next financial year.

 

 

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.2.1(a) To instil confidence to Council and other stakeholders in their decision making by developing and implementing financial procedures, processes and methodologies in an environment that promotes integrity and accountability.

Supporting Documentation:

Nil

Report authorised by:

Lauren Owen, Support Officer - Office of the Mayor


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

mayoral Report

Meeting: Special Budget Meeting  31 July 2013

Date: 26 July 2013

Item Number: 3.3

File Number: D13/32526

 

Subject Heading:                     Fees & Charges 2013/14

Classification:                                  Open Access  

Name of Applicant:                         N/a

Location:                                           N/a

Author:                                               Robert Loughnan, Mayor

 

Executive Summary: 

Council initially considered the schedule of Fees & Charges at its meeting of 26 June 2013.    Since that time, some additional proposed amendments have been identified.     The full schedule is now presented to Council for re-adoption in full.

 

 

Mayor’s Recommendation: 

That Council:

 

1.         Adopt the fees in Schedule L of the Budget material presented.

 

2.         Resolve that, in relation to those cost-recovery fees to which Section 97 of      the Local Government Act 2009 applies:

 

(i)         the applicant is the person liable to pay these fees; and

 

(ii)        the fee must be paid at or before the time the application is lodged; and

 

3.         Delegate to the Chief Executive Officer the power to amend commercial         charges to which section 262 (3) (c) of the Local Government Act 2009     applies.

 

4.         Approve the omission of fees and charges from the Schedule for quarry          materials and services.

 

 

Body of Report:

Key changes include:

·    Ensuring consistency across Departments with similar fees

·    Clarification of formatting and alignment of building fees

·    Further review of Great Artesian Spa fees

·    Pre-paid packages – Lawn Cemetery Injune

 

The proposed new schedule is included in the Budget material (electronic pages 405-426);   alternatively page 1-22 of Schedule L.

Consultation (internal/external):

Councillors, CEO, Directors and Managers

Risk Assessment (Legal, Financial, Political etc.):

Management reports to the Council on the Proposed Register of General fees and Commercial charges to ensure appropriate approvals are in place.

Policy Implications:

The report provides Council the opportunity to formalise its policy position on fees and charges.

Financial Resource Implications:

Revenue from fees and charges forms part of the draft Budget documents 2013/14.

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.2.1(a) To instil confidence to Council and other stakeholders in their decision making by developing and implementing financial procedures, processes and methodologies in an environment that promotes integrity and accountability.

Supporting Documentation:

Nil

Report authorised by:

Lauren Owen, Support Officer - Office of the Mayor


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

mayoral Report

Meeting: Special Budget Meeting  31 July 2013

Date: 22 July 2013

Item Number: 3.4

File Number: D13/31330

 

Subject Heading:                     Revenue Statement 2013/14

Classification:                                  Open Access  

Name of Applicant:                         N/a

Location:                                           N/a

Author:                                               Robert Loughnan, Mayor

 

Executive Summary: 

Section 169 (2) (b) of Local Government Regulation 2012 requires Council to include a Revenue Statement in the Annual Budget. The Revenue Statement is an explanatory statement, detailing the revenue measures adopted in the annual budget.

 

Section 172 of the Local Government Regulation 2012 details what must be contained in the Revenue Statement and Section 193(2) states that the guidelines for preparing the Revenue Statement may be included in the Revenue Policy.

 

The key inclusions in the attached Revenue Statement are:

 

•     Residential and service charges has been increased by 4% with the exception of the minimum general rates which is up from $470 to $500.  Various percentages have been applied to non-residential properties.

•     An increase of 4% on special charges.

•     Continuation of the standard pensioner concessions and other concessions.

•     Continuation of the early payment discount of 10% applicable on general rates only.

 

Department of Natural Resources and Mines (DERM) issued new annual valuations in February 2013 to Maranoa Region, with an effective date of 1 July 2013. The overall increase in valuation was 2.49% for the region, which has been incorporated into the differential general rate categories and the valuation based special rates.

 

 

 

Mayor’s Recommendation: 

 

That Council:

 

1.    Receive and note the report titled “Revenue Statement 2013/14” (labelled as Attachment 1 in the budget documents presented on 17 July 2013).

 

2.         Pursuant to Section 81 of the Local Government Regulation 2012 determine that for the purpose of levying differential general rates for the 2013/14 financial year the different categories of rateable land and a description of those categories is   included in Attachment 1 of the Revenue Statement             “Supplementary Information”.

3.         Adopt the Revenue Statement 2013/14 (Attached) ("the Revenue Statement") in accordance with Section 169 (2) (b) of the Local Government Regulation 2012 and also adopts pursuant to Section 94 of the Local Government Regulation 2012 the overall plans for the special rates and charges for the following and appearing in the Revenue Statement, namely:

 

·    Wild Dog Management & State Government Precept

 

·    Rural Fire Brigade

 

4.         Levies differential general rates, special rates and charges for those properties identified in the Overall Plan relevant to their area and utility charges for the 2013/14 financial year pursuant to Section 94 of the Local Government Act 2009 at the rates included within the Revenue Statement.

 

5.         Determine, pursuant to Section 118 of the Local Government Regulation 2012, those rates and charges must be paid within 30 calendar days after the notice has been issued.

 

6.         Determine to allow a discount for the payment of rates and charges pursuant to Section  130 of the Local Government Regulation 2012 in accordance with the Revenue Statement and

7.         Determine to allow payment of certain rates or charges by arrangements and concessions to certain classes of ratepayer pursuant to Section 129 and Section 119 of the Local Government Regulation 2012 in accordance with the Revenue Statement.

 

 

Body of Report:

The draft Revenue Statement 2013/14 is included by way of attachment.

 

Please note that the Department of Natural Resources has issued new valuations for the 2013/14 financial year with an overall increase for the region of 2.49%.   Modelling has been undertaken to incorporate the new valuations into the differential general rating categories for 2013/14.   The rate in the dollar has been adjusted to reflect fluctuations in the valuations, enabling maintenance of the revenue derived from each differential rating category.

Consultation (internal/external):

The development of the 2013/14 Revenue Statement has involved consultation through Councillor workshops and discussions with relevant Managers.

Risk Assessment (Legal, Financial, Political etc.):

Budget parameters include a rates increase in minimum general rates of $30 and service charges of 4%.

Policy Implications:

The Revenue Statement 2013/14 is consistent with the Revenue Policy 2013/14.

Financial Resource Implications:

The content from the Revenue Statement 2013/14 will form part of the Budget 2013/14.

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.2.1(a) To instil confidence to Council and other stakeholders in their decision making by developing and implementing financial procedures, processes and methodologies in an environment that promotes integrity and accountability.

Supporting Documentation:

Nil.

Report authorised by:

Lauren Owen, Support Officer - Office of the Mayor


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

mayoral Report

Meeting: Special Budget Meeting  31 July 2013

Date: 26 July 2013

Item Number: 3.5

File Number: D13/32632

 

Subject Heading:                     Pensioner Rates Concession Policy

Classification:                                  Open Access  

Name of Applicant:                         N/a

Location:                                           N/a

Author:                                               Robert Loughnan, Mayor

 

Executive Summary: 

Tabling a new policy for Council’s consideration, to enable rate concessions to be granted to eligible pensioners.   The policy, which draws on the same criteria as the State Government, will also provide clarity for officers who administer the pensioner subsidy program.

 

 

Mayor’s  Recommendation: 

That Council adopt the Pensioner Rates Concession Policy.

 

 

Body of Report:

The draft policy is included in the material presented to Councillors on the 17 July 2013, within Schedule K.

Consultation (internal/external):

·    Councillors

·    Rates Officers

Risk Assessment (Legal, Financial, Political etc.):

Nil

Policy Implications:

The report presents a new policy for Council’s consideration.

Financial Resource Implications:

The estimated value of pensioner concessions (included in the budget documents) is $210,000.

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.2.1(a) To instil confidence to Council and other stakeholders in their decision making by developing and implementing financial procedures, processes and methodologies in an environment that promotes integrity and accountability.

 

Supporting Documentation:

Nil

Report authorised by:

Lauren Owen, Support Officer - Office of the Mayor


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

mayoral Report

Meeting: Special Budget Meeting  31 July 2013

Date: 26 July 2013

Item Number: 3.6

File Number: D13/32534

 

Subject Heading:                     Debt (Borrowing) Policy 2013/14

Classification:                                  Open Access  

Name of Applicant:                         N/a

Location:                                           N/a

Author:                                               Robert Loughnan, Mayor

 

Executive Summary: 

It is a requirement of the Local Government Regulation 2012 (Section 192) that a local government must prepare and adopt a debt policy for a financial year.    The section defines what should be included in the policy – i.e:

 

(a) the new borrowings planned for the current financial year and the next 9 financial years; and

 

(b) the period over which the local government plans to repay existing and new borrowings.

 

 

Mayor’s Recommendation: 

That the Debt Policy incorporated in Schedule J of the Budget material presented be adopted.

 

 

Body of Report:

The proposed policy is included in the Budget material (electronic pages 389-391);   alternatively pages 1-3 of Schedule J.

Consultation (internal/external):

·    Councillors

Risk Assessment (Legal, Financial, Political etc.):

Nil

Policy Implications:

The report presents a draft policy for Council’s consideration.

Financial Resource Implications:

The borrowings included in the draft policy have been incorporated into the draft budget documents.

 

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.2.1(a) To instil confidence to Council and other stakeholders in their decision making by developing and implementing financial procedures, processes and methodologies in an environment that promotes integrity and accountability.

Supporting Documentation:

Nil

Report authorised by:

Lauren Owen, Support Officer - Office of the Mayor


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

mayoral Report

Meeting: Special Budget Meeting  31 July 2013

Date: 26 July 2013

Item Number: 3.7

File Number: D13/32602

 

Subject Heading:                     Adoption of Budget 2013/14 & Forward Estimates to 2022/23

Classification:                                  Open Access  

Name of Applicant:                         N/a

Location:                                           N/a

Author:                                               Robert Loughnan, Mayor

 

Executive Summary: 

In accordance with Section 107A of the Local Government Act 2009, I formally request that Council adopt the budget material that I presented to Councillors on the 17 July 2013, and any amendments that Council may resolve to make.

 

Sections 169 to 171of the Local Government Regulation 2012 prescribe the requirements for the adoption of Council’s budget. The information that has been presented to you complies with the disclosure requirements for the adoption of Council’s budget.

 

            1. Statement of Income & Expenditure (Schedule A)

            2. Statement of Financial Position (Schedule B)

            3. Statement of Changes in Equity (Schedule C)

            4. Cash Flow Statement (Schedule D)

            5. Measures of Financial Sustainability (Schedule E)

            6. Schedule of Capital Works and Funding Sources (Schedule H)

            7. Change in Rates and Utility Charges (Schedule G)

 

In addition to the legislative requirements for budget, a financial summary of each of Council’s funds/business units is provided in Schedule F.

 

National Competition Policy reform provisions contained in the Local Government Act 2009 (the Act) require Council’s nominated ‘business activities’ to apply the competitive neutrality principle to their operations.  Council this year will apply the Code of Competitive Conduct to its building certification and roads activity, as required by Section 47 of the Act and Section 39 of the Regulation 2012.   It is also intended that Council will conduct a full assessment of its business activities in 2013/14 to determine whether these activities are significant business activities and therefore Council should apply the requirements of the Local Government Act 2009 and the Local Government Regulation 2012.

 

 

 

 

 

Mayor’s Recommendation: 

 

That Council:

 

1.   Receive and note the change in rates and utility charges for 2013/14 (Schedule G).

 

2.   Receive and note the 2013/14 capital works program and funding sources (Schedule H).

 

3.   Receive and note the budget spreadsheets 2013/14 (including one-off expenditure, and projected carry-over projects) (Schedule M).

 

4.   Receive and note the measures of financial sustainability (Schedule E).

 

5.   Receive and note the financial summaries for Council’s funds/business units (Schedule F).

 

6.   Receive and note the budgeted financial statements and the long term financial forecast (Schedules A-D).

 

7.   Adopt the document titled “2013/14 Budget and Forward Estimates to 2022/23” incorporating all schedules.

 

8.   Apply the code of competitive conduct to the Business Certification Unit and Roads activity for 2013/14.

 

9.   Conduct a full assessment of its business activities in 2013/14 to determine whether these activities are significant business activities and therefore Council should apply the requirements of the Local Government Act 2009 and the Local Government Regulation 2012.

 

 

 

Body of Report:

Background information pertaining to this agenda item has been provided in the earlier report titled “Presentation of Draft Budget 2013/14 and Draft Forward Estimates 2014/15 to 2022/23”

 

Please note that, with respect to the change in rates and utility charges, the figures are based on an assessment where the minimum general rate is applicable.  This is due to the number of differential rating categories, which makes it impractical to make a comparison for all circumstances.

Consultation (internal/external):

§ Mayor & Councillors

§ Senior Management Team

Risk Assessment (Legal, Financial, Political etc.):

Nil

Policy Implications:

Nil

Financial Resource Implications:

The information presented incorporates both the proposed budget for 2013/14 and forward estimates.    The budget details how Council will fund the provision of services, programs and projects.

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.2.1(a) To instil confidence to Council and other stakeholders in their decision making by developing and implementing financial procedures, processes and methodologies in an environment that promotes integrity and accountability.

Supporting Documentation:

Nil

Report authorised by:

Lauren Owen, Support Officer - Office of the Mayor


Maranoa Regional Council

    

Special Budget Meeting -  31 July 2013

Officer Report

Meeting: Special Budget Meeting  31 July 2013

Date: 26 July 2013

Item Number: 3.8

File Number: D13/32554

 

Subject Heading:                     Draft Operational Plan 2013/14

Classification:                                  Open Access  

Name of Applicant:                         N/a

Location:                                           N/a

Author & Officer’s Title:                 Julie Reitano, Chief Executive Officer

 

Executive Summary: 

Under Section 104 of the Local Government Act 2009, Council’s financial management systems must incorporate an annual operational plan.  Under Section 174 of the Local Government Regulation 2012, a local government may adopt the annual operational plan for a financial year at the same time the local government adopts its budget for the financial year.

 

The Local Government may, by resolution, amend its annual operational plan at any time before the end of the financial year.

 

 

Officer’s Recommendation: 

That Council:

 

1.   Receive and note the information included in the report.

 

2.   Adopt the draft Operational Plan for 2013/14.

 

 

Body of Report:

 

The information presented to Councillors by the Mayor on 17 July 2013 included a ‘new look’ Operational Plan integrated with the teams’ proposed work programs.

 

Key Benefits of the new approach include:

§ The plan becomes a ‘living’ document for CEO, Directors, Managers and their Coordinators & work teams.    The plan will orientate the organisation towards outcomes and performance - i.e. delivery of Council’s priorities.

 

It aims to build accountability for results and provides a framework for performance management.

 

 

§ The plan removes layers of administrative work.   Doing a single document well, will keep numerous stakeholders up to date with progress – including:

-  Mayor & Councillors

-  CEO

-  Directors

-  Managers

-  Coordinators & Work Teams

- Community

In many cases, the detail was already kept, it just wasn’t in a form that could be shared across the organisation.

 

§ It builds linkages across Directorates (reduces ‘silo’ approach’ and duplication, and improves efficiency)

 

§ It provides a basis for continuous improvement.   As issues are identified, the annual parts of the operational plan can be updated so that the same issues don’t arise again.

§ The plan will enhance communications and reduce operational risks (s175 (b)(ii)), as all MRC team members (current and future) will have access to what others are/have been working on. It helps ensure that service levels are not compromised if individual staff leave / the Work Program becomes the handover document, making the organisation more resilient.

Note:  The single document replaces / incorporates multiple purposes including ‘to do lists’, contract performance agreements/plans, separate operational plans & team work plans as well as reactive updates to stakeholders about the status of plans (as the year progresses).   It is envisaged that this document will be made available on the new intranet site.   This will provide all Departments, including Customer Service Officers and Communications Officers with information about Council’s projects and activities.  It will build understanding across Directorates about the work that Council is undertaking.

Consultation (internal/external):

§ Councillors

§ Senior Management Team

Risk Assessment (Legal, Financial, Political etc.):

 

In line with Section 175 of the Local Government Regulation 2012, the new look Operational Plan is a tool to manage a range of operational risks faced by Council:

·    Minimising the impacts of turnover of employees  and associated loss of corporate knowledge

·    Ensuring attention to statutory & other compliance through accountability within Work Units

·    Ensuring alignment between employee effort and Council’s policies and priorities.

Policy Implications:

Under Section 12 of the Local Government Act 2009,  Councillors have a number of key responsibilities including but not limited to the achievement of its plans, compliance with all laws that apply to local governments, policy development and decision making for the benefit of the local government area, and being accountable to the community for the local government’s performance.     

The new look Operational Plan will enable Council to provide clear direction to the Chief Executive Officer and employees in relation to its policies and priorities and will also assist in monitoring progress through regular reviews of the Operational Plan.

Financial Resource Implications:

In line with Section 175 of the Local Government Regulation 2012, the Operational Plan is consistent with the budget information presented by the Mayor for adoption.  Details of the budget relevant to particular Work Units are reproduced within the Operational Plan for ease of reference.

 

Link to Corporate Plan:

Corporate Plan 2009-2013 8.2.3(a) To implement Council’s governance policies and procedures in an evolving organisational environment whilst ensuring legislative relevance, consistency and fairness in application.

Supporting Documentation:

1

Maranoa Regional Council - Operational Plan - Our Work Program - 2013/14 (Enclosure)

D13/32576

 

Report authorised by:

Julie Reitano, Chief Executive Officer