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Minutes of the Special Budget Meeting of Maranoa Regional Council held at Roma Administration Centre on 23 July 2014 commencing at 9.00am

 

ATTENDANCE

 

Mayor Cr. R S Loughnan chaired the meeting with, Deputy Mayor Cr. W S Wason, Cr. J L Chambers, Cr. R J Denton, Cr. P J Flynn, Cr. C J O’Neil, Cr. M L Price, Cr D J Schefe, Chief Executive Officer – Julie Reitano, Corporate Communications Officer – Jane Frith, and Kelly Rogers Minutes Officer in attendance.

 

GUESTS

 

There were no guests in attendance at the meeting.

 

WELCOME

 

The Mayor welcomed all present and declared the meeting open at 9.05am.

 

APOLOGIES

 

Resolution No. SMB/01.2014/01

Moved Cr O'Neil                                                            Seconded Cr Chambers

 

That apologies be received and leave of absence granted for Cr. Newman for this meeting.

 

CARRIED                                                                                                                      8/0

 

 

Cr. Flynn left the Chamber at 9.07am

Cr. Flynn entered the Chamber at 9.08am.

 

Business

 

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

Author and Officer’s Title:                 Robert Loughnan, Mayor

Executive Summary: 

In accordance with 107A of the Local Government Act 2009, the Mayor formally requested that Council consider the budget material presented by him,  to Councillors on the 9 July 2014.   

 

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 draft budget submissions and then presented the information to a series of workshops with Councillors.

 

Councillors reviewed both operational and capital budget submissions for 2014/15, the proposed fees and charges and policies that are required by legislation.

 

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

 

Discussion:

The Mayor thanked both staff and Councillors for their effort and contributions in preparing the 2014/15 Budget.

 

Resolution No. SMB/01.2014/02

Moved Cr Chambers                                                      Seconded Cr O'Neil  

 

That Council receive the budget and foreshadow the tabling of collated amendments in  – L.1 – “Proposed Amendments to Budget.”

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Chief Executive Officer/Specialist -Strategic Finance

 

 

Item Number:                                    L.1

File Number: D14/51709

Subject Heading:                         Proposed Amendments to Budget

Author and Officer’s Title:                 Jan Chambers, Councillor

Executive Summary: 

Budget documents were provided to Councillors for review on 9 July 2014.  Councillors were provided with the opportunity to consider the documents, and a workshop was held on 16 July 2014 to enable questions to be raised and answered.  Cr Chambers tabled the collated list of proposed amendments.

 

 

 

Resolution No. SMB/01.2014/03

Moved Cr Wason                                                           Seconded Cr Denton

 

That Council endorse the proposed amendments for incorporation into the Draft Budget in Item 3.8 – Adoption of Budget 2014/15 and Forward Estimates to 2023/24.

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Chief Executive Officer/Specialist – Strategic Finance

 

 

 

Item Number:                                    3.2

File Number: D14/44379

Subject Heading:                         Re-Adoption of Revenue Policy

Author and 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 was submitted for Council’s re-adoption.

 

 

Resolution No. SMB/07.2014/04

Moved Cr Denton                                                          Seconded Cr Schefe  

 

That Council re-adopt the Revenue Policy for 2014/15.

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Chief Executive Officer/Specialist – Strategic Finance

 

 

 

Item Number:                                    3.3

File Number: D14/46125

Subject Heading:                         Revenue Statement 2014/15

Author and 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 increase for a residential property on the minimum general rate will be 4.3%. Various percentages have been applied to non-residential properties.

 

 

Resolution No. SMB/07.2014/05

Moved Cr Price                                                             Seconded Cr Flynn  

 

That Council, incorporating proposed amendments:

 

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

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” as amended.

3.          Adopt the Revenue Statement 2014/15 (Attached) noting that adoption incorporates proposed changes being:

             Table 1 – Differential General Rates

                Category 11. Include the statement “Extractive Industry – Other C, Refer also categories 32 & 33 for Extractive Industry – Other”

             Category 4. Include the statement “& Rural Residential A”

             Category 5. Include the statement “& Rural Residential B”

             Category 6. Include the statement “& Rural Residential C”

             Addition of Categories:

Category

Rate in the Dollar $

Minimum General Rate

Capped Percentage

32. Extractive Industry Other D

0.08073

$500

Not Capped

33. Extractive Industry – Other E

0.08073

$4,000

Not Capped

ATTACHMENT 1 – SUPPLEMENTARY INFORMATION FOR REVENUE STATEMENT 2014/15

Table 1 – Differential Rating Categories 2014/15

             The following table entries to state:    

Category 4 – Large Housesite & Small Rural A & Rural Residential A

Land used, or capable of being used for rural residential, residential or rural purposes, which has an area less than 80 hectares and a rating valuation of less than or equal to $80,000 which is not otherwise categorised

Land having the land use codes of 03, 04, 05, 06, 60-87, 89, 93, 94

Category 5 – Large Housesite & Small Rural B & Rural Residential B

Land used, or capable of being used for rural residential, residential or rural purposes, which has an area less than 80 hectares and a rating valuation greater than $80,000 but less than or equal to $200,000 which is not otherwise categorised

Land having the land use codes of 03, 04, 05, 06, 60-87, 89, 93, 94

 

 

Category 6 – Large Housesite & Small Rural C & Rural Residential C

Land used, or capable of being used for rural residential, residential or rural purposes, which has an area less than 80 hectares and a rating valuation greater than $200,000 which is not otherwise categorised

Land having the land use codes of 03, 04, 05, 06, 60-87, 89, 93, 94

Table 1 – Differential Rating Categories 2014/15 continued…

 

Category 11 – Extractive Industry – Other C

Land used for the purpose of extractive industry, where the permitted tonnage of production per annum is unknown and the area is greater than 50 hectares.

 

Land having the land use code of 40 including Lot 2 on SP 197617.

 

Category 32 – Extractive Industry – Other D

Land used for the purpose of extractive industry, where the permitted tonnage of production per annum is unknown, with an area less than or equal to 1 hectare.

Land having the land use code of 40.

 

Category 33 – Extractive Industry – Other E

 

Land used for the purpose of extractive industry, where the permitted tonnage of production per annum is unknown, with an area greater than 1 hectare but less than or equal to 50 hectares.

Land having the land use code of 40.

 

             Further, in adopting the Revenue Statement in accordance with Section 169 (2) (b) of the Local Government Regulation 2012, Council 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.          Pursuant to Section 118 of the Local Government Regulation 2012, resolve that those rates and charges must be paid within 30 calendar days after the notice has been issued.

 

6.          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.

7.          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.

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Manager Administration & Information Services / Coordinator Rates

 

Item Number:                                    3.4

File Number: D14/46131

Subject Heading:                         Pensioner Rates Concession Policy

Author and Officer’s Title:                 Robert Loughnan, Mayor

Executive Summary: 

Tabled was an updated 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, provides clarity for officers who administer the pensioner subsidy program.

 

Resolution No. SMB/07.2014/06

Moved Cr O'Neil                                                            Seconded Cr Chambers  

 

That Council adopt the Pensioner Rates Concession Policy.

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Manager Administration & Information Services / Coordinator Rates

 

 

Item Number:                                    3.5

File Number: D14/46132

Subject Heading:                         Debt (Borrowing) Policy 2014/15

Author and Officer’s Title:                 Robert Loughnan, Mayor

Executive Summary: 

It is a requirement of the Local Government Regulation 2012 (Section 192), that a local government 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.

 

Resolution No. SMB/07.2014/07

Moved Cr Schefe                                                           Seconded Cr Price  

 

That Council adopt the Debt (Borrowings) Policy incorporated in Schedule L of the Budget material presented, noting that no external borrowings are planned for 2014/15.

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Chief Executive Officer/Specialist -Strategic Finance

 


 

Item Number:                                    3.6

File Number: D14/51049

Subject Heading:                         Investment Policy 2014/15

Author and 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”.

 

Resolution No. SMB/07.2014/08

Moved Cr Chambers                                                      Seconded Cr Wason  

 

That Council adopt the Investment Policy incorporated in Schedule “O” of the Budget material presented.

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Chief Executive Officer

 

 

Item Number:                                    L.3

File Number: D14/52165

Subject Heading:                         Amendments to Fees & Charges 2014/15

Author and 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 was presented to Council for re-adoption on 9 July 2014.

 

At the General Meeting on 9 July 2014, Council resolved to amend Fees & Charges, details are provided below:

 

Resolution No. GM/07.2014/27

Moved Cr Chambers Seconded Cr Flynn

That Council charge a rate of $15 per night to camp in an unpowered site, or a $30 per night to camp at a powered site at Bassett Park, Roma (this site is a Tier One Camping Option).

 

Resolution No. GM/07.2014/32

Moved Cr O'Neil Seconded Cr Schefe

That Council charge an overnight rate of $15 per powered site, or $10 per unpowered site at the Wallumbilla Showgrounds, and investigate the viability of ‘user pays’ facilities for the site (this site is a Tier Two Camping Option).

 

Action:

The proposed amendments were discussed and it was foreshadowed that these would be addressed by Council as part of Item 3.7 – Fees & Charges 2014/15.

 

 

 

Item Number:                                    3.7

File Number: D14/51047

Subject Heading:                         Fees & Charges 2014/15

Author and 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.

 

 

Resolution No. SMB/07.2014/09

Moved Cr Price                                                             Seconded Cr Schefe  

 

That Council:

 

1.    Adopt the fees in Schedule P of the Budget material presented, incorporating the following amendments identified in item L.3 “Amendments to Fees & Charges 2014/15, which were resolved by Council at the General Meeting on 9 July 2014:

 

That Council charge a rate of $15 per night to camp in an unpowered site, or $30 per night to camp at a powered site at Bassett Park, Roma (this site is a Tier One Camping Option).

 

            That Council charge an overnight rate of $15 per powered site, or $10 per unpowered site at the Wallumbilla Showgrounds, and investigate the viability of ‘user pays’ facilities for the site (this site is a Tier Two Camping Option).

 

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 for commercial reasons.

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Chief Executive Officer/Specialist -Strategic Finance

 


 

Item Number:                                    3.8

File Number: D14/48239

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

Author and Officer’s Title:                 Robert Loughnan, Mayor

Executive Summary: 

In accordance with Section 107A of the Local Government Act 2009, the Mayor formally requested that Council adopt the budget material presented by him, to Councillors on the 9 July 2014, 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 complies with the 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 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.

 

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.

 

Resolution No. SMB/07.2014/10

Moved Cr Loughnan                                                      Seconded Cr Flynn  

That Council, incorporating the amendments identified in SMB/01.2014/03:

 

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 as amended.

 

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

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Chief Executive Officer/Specialist -Strategic Finance

 

Item Number:                                    L.2

File Number: D14/52116

Subject Heading:                         Proposed Amendments to Work Programs

Author and Officer’s Title:                 Jan Chambers, Councillor

Executive Summary: 

Work Program documents were provided to Councillors for review on 9 July 2014.  Councillors were provided with the opportunity to consider the documents, and a workshop was held on 16 July 2014 to enable questions to be raised and answered.  Cr. Chambers provided the collated list of proposed amendments.

 

 

 

Action:

The proposed amendments were discussed and it was foreshadowed that they would be addressed by Council as part of Item 3.9 – Operational Plan 2014/15.

 

 

Item Number:                                    3.9

File Number: D14/51577

Subject Heading:                         Operational Plan 2014/15

Author and 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.

 

Resolution No. SMB/07.2014/11

Moved Cr Chambers                                                      Seconded Cr Denton  

 

That Council:

 

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

 

2.   Adopt the draft Operational Plan for 2014/15 incorporating the amendments contained in Item L.2 - Proposed Amendments to Work Programs (Operational Plan) for 2014/15.

 

CARRIED                                                                                                                      8/0

 

Responsible Officer

Chief Executive Officer

 


 

 

CLOSURE

 

There being no further business, the Mayor thanked Council for their attendance and declared the meeting closed at 9.29am.

                                 

 

These Minutes are to be confirmed at the next General Meeting of Council to be held on 13 August 2014 at, Roma Administration Centre.

 

 

 

 

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Mayor.                                                                          Date.