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Addendum Agenda - Ordinary Meeting – Tuesday 28 November 2017 Page 1 |
CL17.326 Integrated Strategic Plan (CSP and DPOP)- Special Rate Variation
HPERM Ref: D17/391915
Group: General Manager's Group
Section: Executive Strategy
Attachments: 1. Special Rates Variation - Submissions Received 2017 (councillors information folder) ⇨
2. IPART Timing for Submission ⇩
Purpose / Summary
To provide Council with the outcomes of the exhibition process that was carried out for the Special Rate Variation Proposal and the Integrated Strategic Plan exhibition (which included changes to the document resulting from the SRV proposal). To seek Council’s adoption of the amended ISP documents and seek determination of whether Council intends to make an application to IPART for a SRV.
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That Council: 1. Receive the feedback and results of community engagement 2. Adopt the amended Integrated Strategic Plan 2017 including the CSP, DPOP, Long Term Financial Plan and Chapter 7 SRV which include changes made to this document to specifically outline the proposed SRV, impact on residents and proposed expenditure of the SRV. 3. Authorise staff to notify IPART of its intention to apply for a Special Rate Variation Application for the retention of the 13.2% special variation approved as a one-off increase in 2017/18 as a permanent increase and for additional special variations (inclusive of a rate peg of 2.5% pa) of 5% in 2018/19, 5% in 2019/20 and 5% in 2020/21 which will retain existing services, allow modest “new” asset spend and move towards meeting all FFTF benchmarks. 4. That Council proceed with the formal Special Rate Variation Application for 2018/19 and submit this in line with the timelines set by IPART (i.e. February 2018)
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Options
1. Adopt the recommendation as printed
Implications: Council will be in a better position to achieve, or progress towards, its Fit for the Future targets, retain existing services and provide the community with necessary maintenance of existing assets to meet community needs.
2. Not adopt the recommendation
Implications: Council will need to reduce operational spending and, in turn, reduce service provision to the community to enable council to meet Fit for the Future targets.
Background
On the 3rd October 2017 (reconvened from 26 September 2017) Council adopted that:
“Option 1 of the report to retain the 13.2% special variation approved as a one-off increase in 2017/18 as a permanent increase and for additional special variations (inclusive of a rate peg of 2.5% pa) of 5% in 2018/19, 5% in 2019/20 and 5% in 2020/21 which will retain existing services, allow modest “new” asset spend and move towards meeting all FFTF benchmarks.”
A full overview including detail of financial options of the SRV proposal and implications/modelling was previously reported to Council on the 3rd October 2017 (reconvened from 26th September 2017). This report contained all the models that have been considered by Council staff and included several options for Council to consider, including alternative savings measures. This information has not been included in this report, however should it need to be reference the report can be found at:
http://shoalhaven.infocouncil.biz/Open/2017/09/CL_20170926_AGN_3712_AT_SUP.PDF
As part of any SRV application to IPART there is a requirement for the Integrated Planning and Reporting documentation of Council to clearly reflect the proposed SRV. For this to occur the ISP 2017 has been amended to reflect any proposed changes that would arise from a proposed SRV.
In its 2017/18 determination, IPART commented “Overall, we consider on balance the community was adequately consulted, despite the IP&R documentation not discussing the full extent of the rate rise.”
Before applying to IPART for a special variation to general income, councils must adopt their Community Strategic Plan, Delivery Program, Long Term Financial Plan and where applicable, Asset Management Plan. Councils may only apply to IPART for a special variation to general income based on those adopted IP&R documents. However, councils do not have to adopt their Operational Plan for the coming year before applying to IPART for a special rate variation
At the Extraordinary Council meeting on 17 October 2017, Council considered the report CL 17.280 Pathways to Sustainability – Special Rate Variation. At this meeting, Council resolved the following:
That:
1. Council adopt the proposed changes to the Integrated Strategic Plan (inclusive of the changes made to the Community Strategic Plan, Delivery Program, and Long Term Financial Plan) for exhibition purposes, in addition to the following;
a. For the 2017/18 and next financial year 2018/19 the $10,000 from the Aerial Beach Patrol be used for beach safety signage
b. The funding of $4.5million for the Vincentia Library be deferred to a subsequent year pending a workshop
2. The Long Term financial plan be fully updated prior to exhibition to reflect the changes outlined above as well as changes to potential loan borrowings resulting from consideration of the impacts of the North Nowra Link Road and Collector Roads and the update be distributed to Councillors prior to exhibition
3. Council include from the rate increase $500,000pa to the upgrade of our sporting fields (Refer to Report SA17.270)
4. A report be submitted to the Ordinary meeting of 24 October 2017 outlining the above.
CARRIED
This community engagement for the SRV and for the IP&R documentation was completed during October and November 2017. The community consultation period closed on Thursday the 23rd November at 11.59 pm.
Outcomes of Community Engagement
An extensive community engagement was carried out for both the SRV proposal and the proposed amendments to Councils IP&R documentation (resulting from the SRV proposal).
This engagement included (but was not limited to):
· Public meetings
· TV advert
· Public Notices
· Document exhibition (at admin centres)
· Get Involved Page
· CCB notification and advice at Executive Meeting
· Radio interviews
· Media Release
· Newsletter in rates notice
· E-news
· Facebook posts
A total of 8 formal submissions were received from the community. There were also several emails and questions raised by a member of the public. This resulted in an email trail which includes several responses and further questions. This email has been considered as 1 additional submission bringing the total to 9 submissions. These are summarised in Table 1 below. A copy of each of the submissions is provided in the Councillor Information folder.
One submission was a specific request for a funding for a project at a location in Shoalhaven, one submission sought answers to questions regarding works undertaken by Council, three submissions were in support of a rates increase. Once submission sought answers to a number of questions relating to accounting, staff costs and other matters and three did not support an increase in rates.
There was also commentary provided via letters to the editor and on Facebook. These have not been treated as formal submissions to Council but will be recorded in any subsequent report to IPART on the engagement process if required.
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No. |
NAME |
SUBMISSION |
COMMENT (if applicable) |
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1. |
Public member, received 20/10/2017 |
I have downloaded the latest Neighbourhood News which says: - Neighbourhood Spring 2017
In June 2017, Council adopted a special rate variation of 13.2% (including the 1.5% rate peg) for the 2017/18 financial year. This increase in rates has assisted Council to meet the growing infrastructure and maintenance needs of our community. Like the widening of Bolong Rd which took many months and costing hundreds of thousands of dollars... The question is - what was the need for such intensive works as the road was already wide enough? • To make a freeway to allow idiots to speed up even more due to the extra space? • For Cyclists - I use this road many times a week and I only see very few cyclists on that road. Besides there was already enough space before the new works. • For vehicles to pull over (phone calls, etc.) - cars rarely stop and I've never seen a truck stopped anywhere at all. • What is the council going to do where the new extra wide road reaches the concrete bridge or Bomaderry centre where CB is situated and beyond as they are bottlenecks? • The money would have been better spent on building a railway crossing overpass - like in Gerringong. I could list a lot of urgent works to be done with a lot more usefulness. A lot of unanswered questions about the Council management of the ratepayer’s monies.
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Noted- A formal response to the questions raised were provided to the community member.
Widening improves safety for motorists and cyclists. Funding from RMS. |
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2. |
Public member, received 27/10/2017 |
It seems to me to be most obvious that SCC must apply each year for an SRV for the years 2018 to 2021. If rates aren't increased then there can be no improvement in services and facilities provided to a Council area where there is one of the highest youth rates unemployment in NSW. |
Support Noted |
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3. |
Public member, received 27/10/2017 |
We object to the cavalier way this very significant rate variation of +13.2% is being proposed. This represents an approximate 600% increase against the approx. 2% CPI increases of the current financial and economic climate. We accept Council needs to be able to do its job properly but first of all I would like to be convinced that Council administration is improving its own inefficiencies, like extravagant sick leave provisions, excessive travel and meal allowances and excessive salaries for senior staff etc. We continually witness council extravagances in relation to payments to contractors and other inefficiencies and before we hear from Council that it cannot continue to meet rising costs without raising more revenue or cutting services, we would like to hear how productivity improvements within Council and its administration will help alleviate the current financial predicament it finds itself in. Its remiss of Council to propose the massive increase on ratepayers without factoring in an efficiency improvement program on Council itself. As a ratepayer, I don't want to pay for Council inefficiencies and extravagances as part of a +13.2 % grab for cash. |
Noted- Council has considered alternative options to the SRV proposal and factored in efficiency cost reductions in previous years |
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4. |
Public member, received 28/10/2017 |
The rates increase is too large a burden for residents to bear. To continue this increase AND expect us to even pay higher rates into the immediate future and beyond is unacceptable and shows Councillors are out of touch with the electorate. Coupled with the excessive increases in electricity prices and historically low wages growth, households are struggling and Councillors need to recognise this situation. The size of this increase indicates Councillors are forcing us to live beyond our means. The reasons given such as we need more swimming pools is a nonsense. Council is not truly looking critically at community needs. Sometimes it needs to say no to frivolous expenditure. We should be curtailing expenses and informing people to reduce their expectations. |
Noted- Council has considered alternative options to the SRV proposal. |
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5. |
Public member, received 03/11/2017 |
Thank you for the presentation council did at Ulladulla Civic Centre on Wednesday 7 November 2017, it was very informative
I have one concern and would like to have this removed: - • money was being allocated to Milton Showground internal roads. I would like to see this removed and the money allocated to roads that residents benefit from.
I am in agreeance with the Special Rate Variation, and can see the benefit to the Shoalhaven Area |
Support Noted- it is not recommended that council make a change at this time. |
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6. |
Public member, received 03/11/2017 |
We need the rate rise to improve our infrastructure and to be fit for the future. More and more development is happening in the Shoalhaven and the current facilities in their current state will not cope into the future |
Support Noted |
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7. |
Public member, received 23/11/2017 |
“I think the rate increases by 5% each year are outrageous and way above the CPI. I had a feeling when Council attempted to set this special rate increase last year that it wouldn't be the end of it. This is just a continuous slug and who's to say the Council won't keep on asking for increases each year thereafter? Shoalhaven Council rates are already more expensive than they are for example in the Hills Shire in Sydney where the land is worth 3 times as much but rates are cheaper and many more facilities are provided such as kerb and guttering and paved footpaths. The council can't even provide a smooth road between Huskisson and Vincentia - the current road is full of bumps and uneven surfaces. Shoalhaven Council should get its act together and look at how the Hills Shire manages. They balance their books and are in a strong financial position each year because of good financial management and certainly do not attempt to impose a severe financial strain on ratepayers. Also, many of the Shoalhaven ratepayers are on fixed incomes and least able to afford such savage increases. Council should seriously give thought to a compromise solution where you cut back on more non- essential works, such as grants to arts and fringe communities - and concentrate more on fixing the essentials. This would make you as a council more credible with ratepayers. |
Noted- Council has considered alternative options to the SRV proposal. |
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8. |
Collingwood Beach Preservation Group |
Requesting funding for drainage and stormwater works to be carried out at Collingwood beach. Seeks a specific budget request to be added to the Operational Plan for 2018/19.
“This submission is provided in response to Council request for feedback on its proposal to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a Special Rate Variation (SRV) for each of the next three financial years.
We put forward the original DPOP’s which we have been updated to reflect changes for moving forward with the CBDVMP and scheduled site visit in December by the Environmental and Assets team for the storm water. We trust that these submissions will be taken into consideration in the updated future DPOP process.”
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Yes-these will be considered during the normal DPOP exhibition and review process that will occur in March 2018.
Specific budget requests were not considered as part of this process as focus was on the amendments made to the plans as a result of the SRV proposal. A further exhibition of the DPOP documents and call for budget adjustments will be made next year. |
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9. |
Public member |
A number of email questions and comments which are provided in Councillor information folder |
Comments Noted- Specific response has been provided directly to the community member |
IP&R documentation
There are no changes proposed to the IP&R documentation as result of the exhibition period. The IP&R documents include the Special Rate Variation proposal and this will remain as exhibited unless Council adopts an alternative recommendation.
Policy Implications
There are no implications on any policies in relation to this report.
Financial Implications
If the revised Integrated Strategic Plan (ISP), including the proposed Special Rate Variation (SRV), is adopted, Council will be in a better position to achieve its Fit for the Future targets, retain existing services and provide the community with necessary maintenance of existing assets to meet community needs.
Should the revised Integrated Strategic Plan (ISP) and proposed Special Rate Variation (SRV) not be adopted, then Council will need to reduce operational spending and, in turn, reduce service provision to the community to enable council to meet its Fit for the Future targets and be in a financially sustainable position going forward
Risk Implications
There are substantial risks to the financial sustainability of Council if a special rate increase is not supported. It would have a significant detrimental impact on service levels or programs if the approval to apply to the IPART for a Special Rate Increase is not supported.
