Agenda of Special Budget

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

TABLE OF CONTENTS

Item Subject

1 Welcome

2 Apologies

3 Business

3.1 Presentation of Draft Budget 2014/15 and Draft Forward Estimates 2015/16 to 2023/24................................................................................................................... 3

Prepared by: Robert Loughnan, Mayor

Attachment 1: Special Budget Meeting 23 July 2014 - Schedule A - Budget Statement of Income and Expenditure

2014-15...................................................................................... 7

Attachment 2: Special Budget Meeting 23 July 2014 - Schedule B - Budget Statement of Financial Position 2014-15............................. 8

Attachment 3: Special Budget Meeting 23 July 2014 - Schedule C - Budget Statement of Changes in Equity 2014-15............................ 9

Attachment 4: Special Budget Meeting 23 July 2014 - Schedule D - Budget Cashflow Statement 2014-15.............................................. 10

Attachment 5: Special Budget Meeting 23 July 2014 - Schedule E - Sustainability Ratios....................................................................................... 11

Attachment 6: Special Budget Meeting 23 July 2014 - Schedule F - Capital Expenditure - MRC 2014-15................................................ 12

Attachment 7: Special Budget Meeting 23 July 2014 - Schedule H - Statement of Income and Expenditure...................................................... 24

Attachment 8: Special Budget Meeting 23 July 2014 - Schedule I - Change in Rates and Charges 2014-15................................................ 25

3.2 Re-Adoption of Revenue Policy.................................................................... 26

Prepared by: Robert Loughnan, Mayor

3.3 Revenue Statement 2014/15.......................................................................... 33

Prepared by: Robert Loughnan, Mayor

Attachment : Schedule K - Revenue Statement 2014-15...................... 36

3.4 Pensioner Rates Concession Policy........................................................... 55

Prepared by: Robert Loughnan, Mayor

Attachment : Special Budget Meeting 23 July 2014 - Schedule M - Pensioner Rate Concession Policy....................................................... 57

3.5 Debt (Borrowing) Policy 2014/15.................................................................. 63

Prepared by: Robert Loughnan, Mayor

Attachment : Special Budget Meeting 23 July 2014 - Schedule L - Borrowings Policy 2014-15........................................................................ 65

3.6 Investment Policy 2014/15.............................................................................. 67

Prepared by: Robert Loughnan, Mayor

Attachment : Special Budget Meeting 23 July 2014 - Schedule O - Investment Policy........................................................................................ 69

3.7 Fees & Charges 2014/15................................................................................. 74

Prepared by: Robert Loughnan, Mayor

Attachment : Special Budget Meeting 23 July 2014 - Schedule P - Fees & Charges Schedule 2014-15 (adopted 14/5/2014)............ 76

3.8 Adoption of Budget 2014/15 & Forward Estimates to 2023/24........... 103

Prepared by: Robert Loughnan, Mayor

Attachment 1: Special Budget Meeting 23 July 2014 - Schedule A - Budget Statement of Income and Expenditure

2014-15.................................................................................. 106

Attachment 2: Special Budget Meeting 23 July 2014 - Schedule B - Budget Statement of Financial Position 2014-15........................ 107

Attachment 3: Special Budget Meeting 23 July 2014 - Schedule C - Budget Statement of Changes in Equity 2014-15....................... 108

Attachment 4: Special Budget Meeting 23 July 2014 - Schedule D - Budget Cashflow Statement 2014-15............................................ 109

Attachment 5: Special Budget Meeting 23 July 2014 - Schedule E - Sustainability Ratios..................................................................................... 110

Attachment 6: Special Budget Meeting 23 July 2014 - Schedule F - Capital Expenditure - MRC 2014-15.............................................. 111

Attachment 7: Special Budget Meeting 23 July 2014 - Schedule G - Carry Overs 2014-15.................................................................................. 123

Attachment 8: Special Budget Meeting 23 July 2014 - Schedule H - Statement of Income and Expenditure.................................................... 125

Attachment 9: Special Budget Meeting 23 July 2014 - Schedule I - Change in Rates and Charges 2014-15.............................................. 126

Attachment 10: Special Budget Meeting 23 July 2014 - Schedule N - Budget Sheets 2014-15.................................................................... 127

Attachment 11: Special Budget Meeting 23 July 2014 - Schedule Q - Reserves Budget 2014-15.................................................................... 191

3.9 Operational Plan 2014/15.............................................................................. 192

Prepared by: Julie Reitano, Chief Executive Officer

Closure

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

Officer Report

Meeting: Special Budget 23 July 2014	Date: 24 June 2014
Item Number: 3.1	File Number: D14/44378

Subject Heading: Presentation of Draft Budget 2014/15 and Draft Forward Estimates 2015/16 to 2023/24

Classification: Open Access

Name of Applicant: N/a

Location: N/a

Author & Officer’s Title: 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 9 July 2014.

By way of background, and as previously advised, the preliminary draft inclusions for the 2014/15 budget were collated by management and staff using the budget parameters as presented to and discussed with Councillors in March 2014. 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 2014/15, 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 2014/15 Budget totals $213.9M (excluding carryover projects) and $229.9M including carry over projects. Some key highlights are:

· Capital projects of $131.5M ($147.6M in total including carry over projects) including Energy Sector road construction contracts and the finalisation of Stage 1 of the levee bank

· Recoverable works such as flood restoration, Main Roads and Energy Sector contract maintenance works totalling $10.4M

· Funded 2014/15 one off projects worth $961K

· Road maintenance works of $9.4M

· 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 2014/15

The budget material is included in the document presented to Council on 9 July 2014 Schedules A – F & Schedule I.

The draft 2014/15 budget delivers a positive operating result of $4.3M. This operating result is used to fund planned capital projects as listed in the capital works program 2014/15.

Residential rates & services have been increased by an average of 4.3% .The modest increase of 4.3% 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.

New capital works included in this budget totalled $131.5M (Schedule F), of which the majority of the funding comes from external sources amounting to $112.5M. This amount excludes any funding projection for carry over projects from 2013/14 financial year (estimated at $16M at present).

Council this year will carry out major road maintenance works for Main Roads, flood damage restoration works and contract works for Energy Sector. This brings a total of $98M 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

(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.

Council has presented a Statement of Income & Expenditure 2014/15 for each of its business type activities, please refer to Schedule H.

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 draft budget for 2014/15 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	Special Budget Meeting 23 July 2014 - Schedule A - Budget Statement of Income and Expenditure 2014-15	D14/52962
2	Special Budget Meeting 23 July 2014 - Schedule B - Budget Statement of Financial Position 2014-15	D14/52963
3	Special Budget Meeting 23 July 2014 - Schedule C - Budget Statement of Changes in Equity 2014-15	D14/52965
4	Special Budget Meeting 23 July 2014 - Schedule D - Budget Cashflow Statement 2014-15	D14/52959
5	Special Budget Meeting 23 July 2014 - Schedule E - Sustainability Ratios	D14/52966
6	Special Budget Meeting 23 July 2014 - Schedule F - Capital Expenditure - MRC 2014-15	D14/52967
7	Special Budget Meeting 23 July 2014 - Schedule H - Statement of Income and Expenditure	D14/51521
8	Special Budget Meeting 23 July 2014 - Schedule I - Change in Rates and Charges 2014-15	D14/51522

Julie Reitano, Chief Executive Officer

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

Officer Report

Meeting: Special Budget 23 July 2014	Date: 24 June 2014
Item Number: 3.2	File Number: D14/44379

Subject Heading: Re-Adoption of Revenue Policy

Classification: Open Access

Name of Applicant: N/a

Location: N/a

Author & Officer’s Title: Robert Loughnan, Mayor

Executive Summary:

Council considered the matter of the Revenue Policy at its meeting on 14 May 2014.

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.

Officer’s Recommendation:

That the Revenue Policy for 2014/15 be re-adopted.

Body of Report:

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 2014/15 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.

Scope

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

Definitions

Council	Maranoa Regional Council
Act	Local Government Act 2009
Pensioner	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’ Entitlement Act 1986 (Cwlth).
Regulation	Local Government Regulation 2012

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

1. Details

1.1 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;

(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.

1.2 Making and Levying of Rates and Charges

Council’s application of the above principles in making and levying of Rates and Charges for the 2014/15 financial year are detailed as follows:

1.2.1 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.

1.2.1.1 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’;

(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.

1.2.2 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 assess whether the revenues are meeting intended program goals and are keeping pace with the cost of providing the service.

1.2.3 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.

4.3 Granting of Rebates and Concessions

4.3.1 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.

4.3.2 The Purpose of Concessions

In accordance with Section 120 (1) of the Local Government Regulation 2012, Council may grant a concession in 2014/15 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 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.

1.4 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:

§ Fairness & 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.

4.5. 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:

4.5.1 Cost Recovery (‘Regulatory’) Fees and Charges (s97 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

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.

4.5.2 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.

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.

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.

4.6 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 while 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.

4.7 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.

Special Provisions

N/a

Related Policies and Legislation

Local Government Act 2009

Local Government Regulation 2012

Associated Documents

Revenue Statement 2014/15

Fees and Charges Register 2014/15

Link to Corporate Plan:

Supporting Documentation:

Nil.

Report authorised by:

Julie Reitano, Chief Executive Officer

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

Officer Report

Meeting: Special Budget 23 July 2014	Date: 1 July 2014
Item Number: 3.3	File Number: D14/46125

Subject Heading: Revenue Statement 2014/15

Classification: Open Access

Name of Applicant: N/a

Location: N/a

Author & Officer’s Title: 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 for residential properties are:

• General rates – cent in the dollar increased by 3.5%

• Minimum general rate increased by 6%

• Service (water, sewerage, waste) charges increased by 3.5%

• Special charges (Rural fire brigade levy and Levy for wild dog management & state government precept) increased by 3.5%

• Continuation of the standard pensioner concessions and other concessions.

• Continuation of the early payment discount of 10% applicable on general rates only, and if no arrears exist.

The average increased for a residential property on the minimum general rate will be 4.3%. Various percentages have been applied to non-residential properties.

Mayor’s Recommendation:

That Council:

1. Receive and note the report titled “Revenue Statement 2014/15” (labelled as Schedule K in the budget documents presented on 9 July 2014).

2. Pursuant to Section 81 of the Local Government Regulation 2012 determine that for the purpose of levying differential general rates for the 2014/15 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 2014/15 (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 2014/15 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 2014/15 is included by way of attachment.

Consultation (internal/external):

The development of the 2014/15 Revenue Statement has involved consultation through Councillor workshops and discussions with relevant Managers.

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

Budget parameters include an average rates increase of 4.3% including service charges.

Policy Implications:

The Revenue Statement 2014/15 is consistent with the Revenue Policy 2014/15.

Financial Resource Implications:

The content from the Revenue Statement 2014/15 will form part of the Budget 2014/15.

Link to Corporate Plan:

Supporting Documentation:

Schedule K - Revenue Statement 2014-15

D14/52968

Report authorised by:

Julie Reitano, Chief Executive Officer

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

Officer Report

Meeting: Special Budget 23 July 2014	Date: 1 July 2014
Item Number: 3.5	File Number: D14/46132

Subject Heading: Debt (Borrowing) Policy 2014/15

Classification: Open Access

Name of Applicant: N/a

Location: N/a

Author & Officer’s Title: 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 (Borrowings) Policy incorporated in Schedule L of the Budget material presented be adopted.

Body of Report:

The proposed policy is included in the Budget material Schedule L.

Consultation (internal/external):

· Councillors

· Chief Executive Officer

· Specialist – Strategic Finance

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:

Supporting Documentation:

Special Budget Meeting 23 July 2014 - Schedule L - Borrowings Policy 2014-15

D14/51526

Report authorised by:

Julie Reitano, Chief Executive Officer

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

Officer Report

Meeting: Special Budget 23 July 2014	Date: 17 July 2014
Item Number: 3.6	File Number: D14/51049

Subject Heading: Investment Policy 2014/15

Classification: Open Access

Name of Applicant: N/a

Location: N/a

Author & Officer’s Title: Robert Loughnan, Mayor

Executive Summary:

Local Government Act 2009 (Section 101 & 104) & Local Government Regulation 2012 state that a local government must prepare and adopt an investment policy.

The investment policy must outline—

(a) the local government’s investment objectives and overall risk philosophy; and

(b) procedures for achieving the goals related to investment stated in the policy

Council has a number of responsibilities when investing funds. These responsibilities are outlined in Section 47 and Section 48 of the Statutory Bodies Financial Arrangements Act 1982.

Section 47(1) states that:

“A statutory body must use its best efforts to invest in funds:

(a) At the most advantageous interest rate available to it at the time of the investment for an investment of the proposed type; and

(b) In a way it considers most appropriate in all the circumstances”.

Mayor’s Recommendation:

That the Investment Policy incorporated in Schedule O of the Budget material presented be adopted.

Body of Report:

The proposed policy is included in the Budget material Schedule O.

Consultation (internal/external):

· Councillors

· Manager Financial Operations

· Chief Executive Officer

· Specialist – Strategic Finance

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

Nil

Policy Implications:

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

Financial Resource Implications:

The draft investment policy has been incorporated into the draft budget documents.

Link to Corporate Plan:

Supporting Documentation:

Special Budget Meeting 23 July 2014 - Schedule O - Investment Policy

D14/51531

Report authorised by:

Julie Reitano, Chief Executive Officer

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

Officer Report

Meeting: Special Budget 23 July 2014	Date: 17 July 2014
Item Number: 3.7	File Number: D14/51047

Subject Heading: Fees & Charges 2014/15

Classification: Open Access

Name of Applicant: N/a

Location: N/a

Author & Officer’s Title: Robert Loughnan, Mayor

Executive Summary:

Council initially considered the schedule of Fees & Charges at its meeting of 14 May 2014. The full schedule is presented to Council for re-adoption.

Officer’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:

The proposed fees & charges 2014/15 schedule is included in the Budget material Schedule P.

Consultation (internal/external):

· Councillors

· Chief Executive Officer

· Directors and Managers

· Specialist – Strategic Finance

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 2014/15.

Link to Corporate Plan:

Supporting Documentation:

Special Budget Meeting 23 July 2014 - Schedule P - Fees & Charges Schedule 2014-15 (adopted 14/5/2014)

D14/52970

Report authorised by:

Julie Reitano, Chief Executive Officer

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

Officer Report

Meeting: Special Budget 23 July 2014	Date: 7 July 2014
Item Number: 3.8	File Number: D14/48239

Subject Heading: Adoption of Budget 2014/15 & Forward Estimates to 2023/24

Classification: Open Access

Name of Applicant: N/a

Location: N/a

Author & Officer’s Title: 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 9 July 2014, and any amendments that Council may resolve to make.

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 F)

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

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

Mayor’s Recommendation:

That Council:

1. Receive and note the change in rates and utility charges for 2014/15 (Schedule I).

2. Receive and note the 2014/15 capital works program and funding sources (Schedule F).

3. Receive and note the budget spreadsheets 2014/15 (including one-off expenditure) (Schedule N), and projected carry-over projects (Schedule G).

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 H).

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

7. Receive and note the budgeted reserves 2014/15 (Schedule Q).

8. Adopt the document titled “2014/15 Budget and Forward Estimates to 2023/24” incorporating all schedules.

9. Apply the code of competitive conduct to the Business Certification Unit and Roads activity for 2014/15.

Body of Report:

Background information pertaining to this agenda item has been provided in the earlier report titled “Presentation of Draft Budget 2014/15 and Draft Forward Estimates 2015/16 to 2023/24”.

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 2014/15 and forward estimates. The budget details how Council will fund the provision of services, programs and projects.

Link to Corporate Plan:

Supporting Documentation:

1	Special Budget Meeting 23 July 2014 - Schedule A - Budget Statement of Income and Expenditure 2014-15	D14/52962
2	Special Budget Meeting 23 July 2014 - Schedule B - Budget Statement of Financial Position 2014-15	D14/52963
3	Special Budget Meeting 23 July 2014 - Schedule C - Budget Statement of Changes in Equity 2014-15	D14/52965
4	Special Budget Meeting 23 July 2014 - Schedule D - Budget Cashflow Statement 2014-15	D14/52959
5	Special Budget Meeting 23 July 2014 - Schedule E - Sustainability Ratios	D14/52966
6	Special Budget Meeting 23 July 2014 - Schedule F - Capital Expenditure - MRC 2014-15	D14/52967
7	Special Budget Meeting 23 July 2014 - Schedule G - Carry Overs 2014-15	D14/51519
8	Special Budget Meeting 23 July 2014 - Schedule H - Statement of Income and Expenditure	D14/51521
9	Special Budget Meeting 23 July 2014 - Schedule I - Change in Rates and Charges 2014-15	D14/51522
10	Special Budget Meeting 23 July 2014 - Schedule N - Budget Sheets 2014-15	D14/52969
11	Special Budget Meeting 23 July 2014 - Schedule Q - Reserves Budget 2014-15	D14/52972

Report authorised by:

Lauren Owen, Support Officer - Office of the Mayor

Maranoa Regional Council

Special Budget Meeting - 23 July 2014

Officer Report

Meeting: Special Budget 23 July 2014	Date: 18 July 2014
Item Number: 3.9	File Number: D14/51577

Subject Heading: Operational Plan 2014/15

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 2014/15.

Body of Report:

The information presented to Councillors by the Mayor on 9 July 2014 included the next stage of enhancements to the Operational Plan integrated with the teams’ proposed work programs.

Similar to last year, the key benefits of integrating Operational Plans & Work Programs are that 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 highlight for this year is that it is the first Operational Plan emanating from, and linked to the new Corporate Plan 2014-2019.

Please note that once the new year documents are adopted, the agenda and minute system will be updated to ensure that Corporate Plan references link the new Plan. Please disregard the section at the bottom of each agenda report at present. The Operational Plan itself includes the up to date references.

Consultation (internal/external):

· Mayor and Councillors

· Executive Management Team & Senior Management Team (Chief Executive Officer, Directors, Managers and Coordinators

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

Nil

Policy Implications:

Nil

Financial Resource Implications:

The Operational Plan is resourced through the Budget for 2014/15.

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:

Nil

Julie Reitano, Chief Executive Officer

Meeting: Special Budget 23 July 2014	Date: 1 July 2014
Item Number: 3.4	File Number: D14/46131