agenda - coorow.wa.gov.au … · 20/05/2020 · agenda . for the . ordinary meeting . of council....

AGENDA FOR THE

ORDINARY MEETING OF COUNCIL

TO BE HELD ON

WEDNESDAY 20 MAY 2020

PLEASE READ THE FOLLOWING DISCLAIMER BEFORE PROCEEDING

Members of the public are cautioned against taking any action on Council decisions, on items in this Agenda in which they may have an interest, until such times as they have been advised in

writing by Shire staff

Shire of Coorow Agenda - Ordinary Meeting 20 May 2020

NOTICE OF MEETING

PLEASE BE ADVISED THAT THE

ORDINARY MEETING OF COUNCIL

COMMENCING AT 5.00 PM

WILL BE HELD ON

WEDNESDAY, 20 MAY 2020

COOROW DISTRICT HALL

John Merrick Acting Chief Executive Officer

DISCLAIMER The advice and information contained herein is given by and to the Council without liability or responsibility for its accuracy. Before placing any reliance on this advice or information. A written inquiry should be made to the Council giving reasons for seeking the advice or information and how it is proposed to be used.


Agenda

1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS: .............................................. 4

2. RECORD OF ATTENDANCE / APOLOGIES / LEAVE OF ABSENCE PREVIOUSLYAPPROVED ............................................................................................................................................... 4

3. REPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE: ...................................... 4

4. PUBLIC QUESTION TIME: ..................................................................................................................... 4

5. APPICATION FOR LEAVE OF ABSENCE: ......................................................................................... 5

6. DECLARATION OF INTEREST: ............................................................................................................ 5

7. PETITIONS/DEPUTATIONS/PRESENTATIONS: ............................................................................... 5

8. CONFIRMATION OF MINUTES ............................................................................................................. 5 8.1 ORDINARY MEETING HELD WEDNESDAY 15 APRIL 2020 HELD ELECTRONICALLY. .......... 5

9. ANNOUNCEMENTS BY THE PERSON PRESIDING WITHOUT DISCUSSION: .......................... 5

10. MATTER FOR WHICH MEETING MAY BE CLOSED; ...................................................................... 5

11. REPORTS: ................................................................................................................................................. 6

11.1 ACTING CHIEF EXECUTIVE OFFICER: .............................................................................................. 6

11.2 MANAGER OF WORKS AND SERVICES: .......................................................................................... 6

11.3 DEPUTY CHIEF EXECUTIVE OFFICER: ............................................................................................ 7 11.3.1 LIST OF ACCOUNTS PAID FOR THE MONTH OF APRIL 2020 .................................................. 7 11.3.2 MONTHLY STATEMENT OF FINANCIAL ACTIVITY – APRIL 2020 .......................................... 21 11.3.3 POLICY 3.6.2 – PURCHASES OF GOODS & SERVICES ......................................................... 34 11.3.4 OFFER TO PURCHASE – 15 LONG STREET, COOROW ........................................................ 39 11.3.5 PROPOSED DIFFERENTIAL RATES FOR 2020/2021............................................................... 43

12. QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN: ............................. 56

13. URGENT BUSINESS APPROVED BY THE PERSON PRESIDING OR BY DECISION: .......... 56

14. MATTERS BEHIND CLOSED DOORS: .............................................................................................. 56 14.1. CONTRACT FOR AN ACTING CHIEF EXECUTIVE OFFICER .................................................. 57

15. DATE OF NEXT MEETING: .................................................................................................................. 58 15.1 ORDINARY MEETING OF COUNCIL.......................................................................................... 58

16. CLOSURE: ............................................................................................................................................... 58


1. DECLARATION OF OPENING / ANNOUNCEMENT OF VISITORS:

The President, Cr Moira J Girando, welcomed those present and opened theMeeting at pm.

The Shire of Coorow acknowledges the Aboriginal peoples of Western Australiaas the traditional custodians of this land, and we pay our respects to their Elderspast and present.

2. RECORD OF ATTENDANCE / APOLOGIES / LEAVE OFABSENCE PREVIOUSLY APPROVED

Councillor M J Girando President Councillor B A Jack Deputy President Councillor M R Bothe Councillor G V Heales Councillor R R Kau Councillor V J Muller Councillor V R Oakes Councillor S D Peck

Mr J Merrick Acting Chief Executive Officer Mrs L J Parola Deputy Chief Executive Officer Mr K Bean Manager of Works & Services

Leave of Absence

Apologies

Visitors

3. REPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ONNOTICE:

4. PUBLIC QUESTION TIME:


5. APPICATION FOR LEAVE OF ABSENCE:

The following Councillor/s requested Leave of Absence from Council Meetings and Duties:

RESOLUTION: 2020/ Moved: Cr Seconded: Cr

CARRIED / Simple Majority

6. DECLARATION OF INTEREST:

7. PETITIONS/DEPUTATIONS/PRESENTATIONS:

8. CONFIRMATION OF MINUTES

8.1 ORDINARY MEETING HELD WEDNESDAY 15 APRIL 2020 HELD

ELECTRONICALLY.

9. ANNOUNCEMENTS BY THE PERSON PRESIDING WITHOUT DISCUSSION:

10. MATTER FOR WHICH MEETING MAY BE CLOSED;

For the convenience of members of the public Council may identify, by decision, early in the meeting any matter on the agenda to be discussed behind closed doors and that matter is to be deferred for consideration as the last item of the meeting. Item 14.1 – Contract for an Acting Chief Executive Officer

RESOLUTION: 2020/ Moved: Cr Seconded: Cr That the Minutes of the Ordinary Meeting held on Wednesday 15 April 2020 be confirmed as true and correct.



11. REPORTS:

11.1 ACTING CHIEF EXECUTIVE OFFICER:

11.2 MANAGER OF WORKS AND SERVICES:


11.3 DEPUTY CHIEF EXECUTIVE OFFICER:

11.3.1 LIST OF ACCOUNTS PAID FOR THE MONTH OF APRIL 2020

Subject List of Accounts Paid Reporting Officer: Finance Officer Responsible Executive: Deputy Chief Executive Officer File Reference: ADM0652 – Financial Management Disclosure of Interest: Nil Attachments: List of Accounts for Payment Voting Requirements: Simple Majority ____________________________________________________________________ Council Role

Review When Council reviews decisions made by officers.

REPORT PURPOSE: For Council to accept the list of accounts paid since the last list was prepared. BACKGROUND: The Chief Executive Officer has been delegated authority to make payments from the Municipal account. The Local Government (Financial Management) Regulations 1996 require a list of payments made under delegated authority to be prepared each month and presented to the next ordinary meeting of Council following the preparation of the list. COMMENT: The list has been prepared showing payments made under delegation since the last list was prepared for the 15TH of April ordinary meeting of Council. STAKEHOLDER ENGAGEMENT: Nil FINANCIAL / RESOURCE IMPLICATIONS: Nil STATUTORY ENVIRONMENT: Local Government (Financial Management) Regulations 1996 - s13 List of accounts POLICY IMPLICATIONS: Nil STRATEGIC IMPLICATIONS: Nil


RISK IMPLICATIONS: This review process should help to ensure that payments are always made under the correct authority.

OFFICER RECOMMENDATION:

RESOLUTION: 2020/

Moved: Cr Seconded: Cr

That the list of accounts paid under delegated authority for the month of April 2020 as presented be accepted, including

MUNICIPAL FUND Cheques 20372 - 20381 $ 5,221.70 Payroll DD’s 01/04/2020 – 30/04/2020 $ 187,379.00 EFTS 15005 - 15099 $ 447,294.67 Direct Debits 01/04/2020 – 30/04/2020 $ 76,014.88 TOTALLING $ 715,910.25

TRUST FUND EFTS N/A $ 0.00 Cheques N/A $ 0.00 TOTALLING $ 0.00



11.3.2 MONTHLY STATEMENT OF FINANCIAL ACTIVITY – APRIL 2020 Reporting Officer: Deputy Chief Executive Officer Responsible Executive: Deputy Chief Executive Officer File Reference: ADM0652 – Financial Management-EOM Processing Disclosure of Interest: Nil Attachments: 11.3.2 – Monthly Statement of Financial Activity Voting Requirements: Simple Majority ____________________________________________________________________ Council Role:

Executive The substantial direction setting and oversight role of the Council eg adopting plans and reports, accepting tenders, setting and amending budgets.

REPORT PURPOSE: For Council to accept the Monthly Statement of Financial Activity. BACKGROUND: In accordance with the Local Government (Financial Management) Regulations 1996, regulation 34 stipulates that a Local Government is to prepare each month a statement of financial activity reporting on the sources and applications of funds, as set out in the annual budget under regulation 22(1) (d), for that month. The form of the Monthly Financial Statements usually presented to Council is a Statement of Financial Activity, which also includes supplementary information including an Operating Statement Function and Activity, Balance Sheet and Cash Flow Graph. COMMENT: The Shire is required to prepare the Statement of Financial Activity as per Local Government (Financial Management) Regulation 36, but can resolve to have supplementary information included as required. All mandatory information is provided and the closing surplus balances to the net current assets at 30 April 2020. STAKEHOLDER ENGAGEMENT: Nil FINANCIAL / RESOURCE IMPLICATIONS: Nil STATUTORY ENVIRONMENT: Local Government (Financial Management) Regulations 1996

- s34 Financial activity statement required each month (Act s. 6.4)


Page 21

POLICY IMPLICATIONS: Nil STRATEGIC IMPLICATIONS: Nil RISK IMPLICATIONS: Nil OFFICER RECOMMENDATION: RESOLUTION: 2020/ Moved: Cr Seconded: Cr That the Monthly Statement of Financial Activity as included at Attachment 11.3.2 for the period ended 30 April 2020 be accepted.



Page 22

SHIRE OF COOROW

MONTHLY FINANCIAL REPORT(Containing the Statement of Financial Activity)

For the Period Ended 30 April 2020

LOCAL GOVERNMENT ACT 1995

LOCAL GOVERNMENT (FINANCIAL MANAGEMENT) REGULATIONS 1996

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Amount $ ( '000s)

Month ending

Budget Operating Revenues ‐v‐ Actual (Refer Note 1)

Budget 2019‐20

Actual 2019‐20

0

2000

4000

6000

8000

10000

12000


Amount $ ( '000s)

Month ending

Budget Operating Expenses ‐v‐ YTD Actual (Refer Note 1)

Budget 2019‐20

Actual 2019‐20

0

100

200

300

400

500

600

700

800

900


Amount $ ( '000s)

Month ending

Budget Capital Revenue ‐v‐ Actual (Refer Note 1)

Budget 2019‐20

Actual 2019‐20

0

500

1,000

1,500

2,000

2,500

3,000


Amount $ ( '000s)

Month ending

Budget Capital Expenses ‐v‐ Actual (Refer Note 1)

Budget 2019‐20

Actual 2019‐20


Page 23

Var. $

(b)‐(a)

Var. %

(b)‐(a)/(a)Var.

$ $ $ $ $ %

Opening Funding Surplus (Deficit) 2,008,404 2,008,404 2,008,404 (0) (0%)

Revenue from operating activities

Rates 3,299,495 3,299,585 332 3,269,707 (29,878) (1%)

Operating Grants, Subsidies and 0

Contributions 1,170,494 919,105 2,334 937,311 18,206 2%

Fees and Charges 579,263 538,088 9,540 539,814 1,726 0%

Interest Earnings 118,326 70,720 10,797 66,198 (4,522) (6%)

Other Revenue 59,050 56,370 1,111 64,119 7,749 14%

Profit on Disposal of Assets 42,061 4,980 0 0 (4,980) (100%)

5,268,690 4,888,848 24,114 4,877,148 (11,700) (0%)

Expenditure from operating activities

Employee Costs (2,204,965) (1,836,410) (148,149) (1,446,938) 389,472 21%

Materials and Contracts (2,090,089) (1,764,183) (104,925) (1,416,484) 347,699 20%

Utility Charges (275,401) (229,010) (24,746) (256,044) (27,034) (12%)

Depreciation on Non‐Current Assets (6,271,412) (5,226,100) (507,413) (5,141,419) 84,681 2%

Interest Expenses (7,422) (6,180) 0 (4,414) 1,766 29%

Insurance Expenses (207,007) (189,369) 0 (204,491) (15,122) (8%)

Other Expenditure (75,976) (58,505) (1,355) (59,727) (1,222) (2%)

Loss on Disposal of Assets (116,564) (88,200) (29,382) (37,771)

(11,248,835) (9,397,957) (815,971) (8,567,288) 830,669 9%

Operating activities excluded from budget

Add back Depreciation 6,271,412 5,226,100 507,413 5,141,419 (84,681) (2%)

Adjust (Profit)/Loss on Asset Disposal 74,503 83,220 29,382 37,771 (45,449) (55%)

Adjust Provisions and Accruals 3,963 7 0 2 (6) (76%)

Amount attributable to operating activities 369,732 800,218 (255,062) 1,489,052 688,834

Investing activities

Grants, Subsidies and Contributions 877,844 695,561 9,790 864,726 169,165 24%

Proceeds from Disposal of Assets 210,057 156,120 0 143,091 (13,029) (8%)

Land and Buildings (466,753) (404,610) (211,069) 193,541 48%

Infrastructure Assets ‐ Roads (1,621,526) (1,557,580) (1,407,050) 150,529 10%

Infrastructure Assets ‐ Other (459,820) (424,300) (298,855) 125,445 30%

Infrastructure Assets ‐ Footpaths (86,993) (75,558) 0 75,558 100%

Infrastructure Assets ‐ Drainage (13,000) (13,000) (13,046) (46) (0%)

Plant and Equipment (532,241) (445,756) (445,502) 254 0%

Amount attributable to investing activities (2,092,432) (2,069,122) 9,790 (1,367,705) 701,417 34%

Financing Activities

Proceeds from Advances 22,047 0 21,879 10,940 10,940

Transfer from Reserves 120,319 0 0 0 0

Repayment of Debentures (37,293) (31,070) (5,042) (31,227) (157) (1%)

Transfer to Reserves (390,777) 0 0 0 0

Amount attributable to financing activities (285,704) (31,070) 16,837 (20,287) 10,783 35%

Closing Funding Surplus (Deficit) 0 708,430 (228,435) 2,109,463 1,401,033 198%

Indicates a variance between Year to Date (YTD) Budget and YTD Actual data as per the adopted materiality threshold.

Refer to Note 2 for an explanation of the reasons for the variance.

This statement is to be read in conjunction with the accompanying Financial Statements and notes.

SHIRE OF COOROW

STATEMENT OF FINANCIAL ACTIVITY

(By Nature or Type)


Amended

Annual

Budget

Amended YTD

Budget

(a)

YTD

Actual

(b)

This Month

Actual

(b)

2


Page 24

Note 1: Explanation of Material Variances

The material variance thresholds are adopted annually by Council as an indicator of whether the actual expenditure or

revenue varies from the year to date budget materially.

The material variance adopted by Council for the 2019/20 year is $10,000 or 10% whichever is the greater.

Reporting Program Var. $ Var. % Var.Timing/

PermanentExplanation of Variance

Operating Revenues $ %

Rates (29,878) ‐1%

Operating Grants, Subsidies and 0

Contributions 18,206 2%

Fees and Charges 1,726 0%

Service Charges 0

Interest Earnings (4,522) ‐6%

Other Revenue 7,749 14%

Operating Expense

Employee Costs 389,472 21% U

Permanent Combination of several unbudgeted capital jobs and not all

positions being occupied in the works and admin areasMaterials and Contracts 347,699 20%

UTiming Combination of several unbudgeted capital jobs and minor

underexpenditure across a number of accountsUtility Charges (27,034) ‐12%

OPermanent Water usage at Maley Park Oval is significantly higher than

budgetedDepreciation on Non‐Current Assets 84,681 2%

Interest Expenses 1,766 29%

Insurance Expenses (15,122) ‐8%

Other Expenditure (1,222) ‐2%

Capital Revenues

Grants, Subsidies and Contributions 169,165 24% O Timing R2R and RRG funds all received earlier than budgeted

Proceeds from Disposal of Assets (13,029) (8%)

Capital Expenses

Land and Buildings 193,541 48% U Timing A number of capital projects not carried out yet

Infrastructure ‐ Roads 150,529 10%

Infrastructure ‐ Other 125,445 30% U Timing A number of jobs have yet to be completed

Infrastructure ‐ Footpaths 75,558 100% U Timing Budget profiling was not carried out for footpath projects

Plant and Equipment 254 0%

Financing

Transfer from Reserves 0

Loan Principal Repayments (157) (1%)

Transfer to Reserves 0

SHIRE OF COOROW

NOTES TO THE STATEMENT OF FINANCIAL ACTIVITY


3


Page 25

Note 2: Net Current Funding Position

Last Years

Closing

This Time Last

Year Current

30 June 2020 01 May 2019 30 Apr 2020

$ $ $

Current Assets

Cash Unrestricted 2,230,610 1,988,077 2,305,859

Cash Restricted ‐ Conditions over Grants 0 0 0

Cash Restricted 1,593,194 1,135,633 1,593,194

Receivables ‐ Rates 123,145 91,394 161,149

Receivables ‐ Other (136,966) 57,375 25,502

Inventories 29,380 38,037 24,084

3,839,363 3,310,517 4,109,787

Less: Current Liabilities

Payables (255,123) (114,840) (185,427)

Provisions Loans (37,293) (10,774) (6,066)

Provisions Leave (390,744) (396,602) (390,744)

(683,159) (522,216) (582,237)

Less: Cash Reserves (1,593,194) (1,135,633) (1,593,194)

Less: Unspent Grants 0 0 0

Add: Loan Current 37,293 10,774 6,066

Less: SSL Sundry Debtors 227,953 (10,774) (11,108)

Add: Leave Reserve 180,148 176,674 180,148

Net Current Funding Position 2,008,404 1,829,341 2,109,463

Comments ‐ Net Current Funding Position

SHIRE OF COOROW



Positive=Surplus (Negative=Deficit)

0

1000

2000

3000

4000

5000

6000

7000


Amount $ ( '000s)

Note 2 ‐ Liquidity Over the Year

2019‐20

2018‐19

2017‐18

4


Page 26

Note 3: Cash and Investments

Total

Unrestricted Restricted Trust Amount

$ $ $ $

(a) Cash Deposits

Muni Cash At Bank 296,300 296,300

Muni Telenet Saver 1,008,707 1,008,707

Municipal Fund Term Deposits 1,000,000 1,000,000

Cash at Reserve ‐ Bank 4 4

Reserve Fund Term Deposits 1,593,190 1,593,190

Trust Fund Bank 94,683 94,683

Petty Cash Float 851 851

Total 2,305,859 1,593,194 94,683 3,993,736

Comments/Notes ‐

Term Deposit For Amount Held With Interest Rate Matures Interest Expected

Municipal Funds 250,000 ME Bank 2.00% 13/05/2020

Municipal Funds 250,000 BankWest 1.23% 18/05/2020 512.50

Municipal Funds 250,000 ME Bank 1.65% 18/06/2020 718.75

Municipal Funds 250,000 ME Bank 1.65% 18/06/2020 718.75

1,000,000

Reserve Fund 1,593,190 ME Bank 2.00% 9/06/2020

SHIRE OF COOROW



Institution

BankWest

BankWest

BankWest

BankWest

ME Bank

ME Bank

6


Page 27

Note 4: Budget Amendments

Amendments to original budget since budget adoption. Surplus/(Deficit) Current Budget

Prog

Sub

Prog Description

Non Cash

Adjustment Original Budget Variation Current Budget

Amended Budget

Running Balance

$ $ $ $ $

Budget Adoption 0

Permanent Changes

Opening surplus adjustment ‐115,045.00 ‐115,045

03 0301 Rates ‐3,039,792.72 ‐30,000.00 ‐3,069,792.72 ‐145,045

03 0302 Other General Purpose Funding ‐793,058.18 ‐89,000.00 ‐882,058.18 ‐234,045

04 0401 Members of Council 196,589.20 ‐36,000.00 160,589.20 ‐270,045

04 0402 Other Governance 466,503.00 ‐15,000.00 451,503.00 ‐285,045

05 0501 Fire Prevention 197,646.00 5,700.00 203,346.00 ‐279,345

05 0502 Animal Control 17,635.00 0.00 17,635.00 ‐279,345

05 0503 Other Law, Order & Public Safety 241,272.40 0.00 241,272.40 ‐279,345

07 0704 Preventative Services ‐ Inspection/Admin 60,672.00 0.00 60,672.00 ‐279,345

07 0705 Preventative Services ‐ Pest Control 16,915.00 0.00 16,915.00 ‐279,345

07 0707 Other Health 58,854.68 ‐8,000.00 50,854.68 ‐287,345

08 0803 Care of Families and Other Children 13,647.31 0.00 13,647.31 ‐287,345

08 0806 Aged & Disabled ‐ Other 33,916.44 0.00 33,916.44 ‐287,345

08 0807 Other Welfare 47,358.54 0.00 47,358.54 ‐287,345

09 0901 Staff Housing 105,843.61 108,868.00 214,711.61 ‐178,477

09 0902 Other Housing ‐14,630.92 5,000.00 ‐9,630.92 ‐173,477

10 1001 Sanitation ‐ General 200,794.11 ‐6,000.00 194,794.11 ‐179,477

10 1002 Sanitation ‐ Other 19,647.67 0.00 19,647.67 ‐179,477

10 1003 Sewerage 13,650.00 ‐8,500.00 5,150.00 ‐187,977

10 1004 Urban Stormwater Drainage 78,795.78 0.00 78,795.78 ‐187,977

10 1005 Protection of the Environment 19,285.74 0.00 19,285.74 ‐187,977

10 1006 Town Planning & Regional Development 61,733.00 ‐10,000.00 51,733.00 ‐197,977

10 1007 Other Community Amenities 404,624.26 85,000.00 489,624.26 ‐112,977

11 1101 Public Halls and Civic Centre 528,377.51 7,500.00 535,877.51 ‐105,477

11 1102 Swimming Areas and Beaches 376,065.76 0.00 376,065.76 ‐105,477

11 1103 Other Recreation and Sport 1,217,208.55 8,500.00 1,225,708.55 ‐96,977

11 1104 TV & Radio Re‐Broadcasting ‐3,125.63 0.00 ‐3,125.63 ‐96,977

11 1105 Libraries 71,394.01 0.00 71,394.01 ‐96,977

11 1107 Other Culture 39,494.74 ‐24,000.00 15,494.74 ‐120,977

12 1201 Construction ‐ Streets, Roads, Bridges & Depots 736,150.59 152,000.00 888,150.59 31,023

12 1202 Maintenance ‐ Streets, Roads, Bridges & Depots 6,211,804.30 ‐8,000.00 6,203,804.30 23,023

12 1203 Road Plant Purchases 663,778.96 20,477.04 684,256.00 43,500

12 1205 Traffic Control (Vehicle Licensing) 3,877.00 ‐15,000.00 ‐11,123.00 28,500

12 1206 Aerodromes 19,464.18 0.00 19,464.18 28,500

13 1301 Rural Services 18,831.00 ‐5,000.00 13,831.00 23,500

13 1302 Tourism and Area Promotion 132,175.67 ‐6,000.00 126,175.67 17,500

13 1303 Building Control 90,595.00 0.00 90,595.00 17,500

13 1306 Other Economic Services 16,652.00 0.00 16,652.00 17,500

13 1308 Other Economic Services ‐1,155.00 0.00 ‐1,155.00 17,500

14 1401 Private Works ‐15,530.00 0.00 ‐15,530.00 17,500

14 1402 General Administration Overheads 36,532.20 ‐17,500.00 19,032.20 0

14 1403 Public Works Overheads ‐200.21 0.00 ‐200.21 0

14 1404 Plant Operating Costs ‐50,000.00 0.00 ‐50,000.00 0

14 1405 Salaries and Wages 0.00 0.00 0.00 0

0.00 8,500,293 0 8,615,338

SHIRE OF COOROW



7


Page 28

Note 5: Cash Backed Reserve

Name Opening Balance

Amended

Budget Interest

Earned

Actual Interest

Earned

Amended

Budget

Transfers In

(+)

Actual

Transfers In

(+)

Amended

Budget

Transfers Out

(‐)

Actual

Transfers Out

(‐)

Amended

Budget

Closing

Balance

Actual YTD Closing

Balance

$ $ $ $ $ $ $ $ $

Leave Reserve 180,148 3,963 0 0 0 0 0 184,111 180,148

Building Reserve 252,005 5,544 0 147,868 0 0 0 405,417 252,005

Resource Sharing Reserve 25,380 558 0 0 0 0 0 25,938 25,380

Plant Reserve 582,352 12,812 0 104,759 0 0 0 699,923 582,352

Rebroadcasting Reserve 27,649 608 0 0 0 (2,446) 0 25,811 27,649

Joint Venture Housing Reserve 48,690 1,071 0 0 0 (116) 0 49,645 48,690

Bowling Club Reserve 6,537 144 0 2,100 0 0 0 8,781 6,537

Road Infrastructure Reserve 115,222 2,535 0 0 0 (117,757) 0 0 115,222

Pool Revitalisation Reserve 349,619 7,692 0 50,000 0 0 0 407,311 349,619

Tourist Infrastructure Reserve ‐ Accumulation 5,592 123 0 51,000 0 0 0 56,715 5,592

1,593,194 35,050 0 355,727 0 (120,319) 0 1,863,652 1,593,194

SHIRE OF COOROW



8


Page 29

Note 6: Capital Acquisitions

Assets Job New/Upgrade Renewal Total YTD

Annual

Budget YTD Budget YTD Variance

Strategic Reference /

Comment

$ $ $ $ $ $

Level of completion indicator, please see table at the end of this note for further detail.Buildings

Law, Order & Public Safety

Green Head Fire Shed ‐ Capital BC047 5,606 0 5,606 5,700 5,700 (94)

Law, Order & Public Safety Total 5,606 0 5,606 5,700 5,700 (94)

Housing

6, Lot 131 Spain Street ‐ Capital BC000 48,346 0 48,346 50,000 41,670 6,676

7, Lot 29 Spain Street ‐ Capital BC013 2,698 0 2,698 3,000 3,000 (302)

2, Lot 9 Thomas Street ‐ Capital BC019 9,790 0 9,790 0 0 9,790

29, Lot 49 Nairn Street ‐ Capital BC020 6,888 0 6,888 19,000 15,830 (8,942)

63, Lot 64 Nairn Street ‐ Capital BC022 1,097 0 1,097 10,000 8,330 (7,233)

5, Lot 520 Tuart Street ‐ Capital BC023 7,958 0 7,958 8,000 8,000 (43)

11, Lot 490 Tamarisk Street ‐ Capital BC025 3,042 0 3,042 6,000 6,000 (2,958)

9, Lot 453 Morcombe Road ‐ Capital BC054 0 0 0 5,000 4,160 (4,160)

Unit A Brand Street ‐ Capital BC055 306 0 306 0 0 306

Housing Total 80,125 0 80,125 101,000 86,990 (6,865)

Community Amenities

Dynamite Bay Toilet ‐ Capital BC027 0 0 0 200,000 0 0

Cliff Park Toilet ‐ Capital BC032 0 0 0 2,000 0 0

Community Amenities Total 0 0 0 202,000 0 0

Recreation And Culture

Coorow Bowling Club ‐ Capital BC031 190 0 190 5,000 4,160 (3,970)

Coorow Hall ‐ Capital BC033 3,239 0 3,239 3,000 2,500 739

Maley Park Facilities ‐ Capital BC034 445 0 445 0 0 445

Green Head Community Centre ‐ Capital BC036 20,102 0 20,102 20,000 20,000 102

Coorow Golf Club Buildings ‐ Capital BC050 19,170 0 19,170 20,000 20,000 (830)

Dynamite Bay Rotunda/Shelters ‐ Capital BC051 445 0 445 5,000 4,160 (3,715)

Green Head Sporting Club BC062 31,004 0 31,004 28,000 23,330 7,674

Cliff Park Gazebo ‐ Capital BC063 8,000 0 8,000 8,500 7,080 920

LEEMAN FORESHORE GAZEBO (CAPITAL) BC064 0 0 0 5,000 4,160 (4,160)

Morphett Park Gazebo (Capital) BC065 9,790 0 9,790 0 0 9,790

Koobabbie Collection 4110710 5,000 0 5,000 6,000 6,000 (1,000)

Recreation And Culture Total 97,385 0 97,385 100,500 91,390 5,995

Transport

Coorow Depot ‐ Capital BC039 1,400 0 1,400 15,000 12,500 (11,100)

Leeman Depot ‐ Capital BC040 1,855 0 1,855 5,053 4,210 (2,355)

Green Head Depot ‐ Capital BC041 0 0 0 12,000 10,000 (10,000)

Transport Total 3,255 0 3,255 32,053 26,710 (23,455)

Economic Services

SHIRE OF COOROW



YTD Actual Amended Budget

9


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Annual



Comment

$ $ $ $ $ $

SHIRE OF COOROW




Coorow Caravan Park ‐ Capital BC042 1,078 0 1,078 0 0 1,078

Economic Services Total 1,078 0 1,078 0 0 1,078

Other Property & Services

Coorow Administration Centre ‐ Capital BC001 23,620 0 23,620 20,000 20,000 3,620

Leeman Administration Centre ‐ Capital BC002 0 0 0 5,500 5,500 (5,500)

Other Property & Services Total 23,620 0 23,620 25,500 25,500 (1,880)

Buildings Total 211,069 0 211,069 466,753 236,290 (25,221)

Plant & Equipment (inc Furniture)

Law, Order & Public Safety

CW0050 Ranger Utility (Capital) PE0050 0 0 0 45,000 0 0

Law, Order & Public Safety Total 0 0 0 45,000 0 0

Transport

CW003 Leading Hand Ute (Capital) PE0003 0 0 0 41,485 0 0

CW0010 Prime Mover (Capital) PE0010 243,000 0 243,000 243,000 243,000 0

CW0018 Vibe Roller (Capital) PE0018 144,850 0 144,850 145,348 145,348 (498)

Sundry Plant & Equipment (Capital) PE6 3,163 0 3,163 2,800 2,800 363

CW3505 Mechanic Ute (Capital) PE3505 0 0 0 0 0 0

Transport Total 391,013 0 391,013 432,633 391,148 (135)

Other Property & Services

CW001 CEO Vehicle (Capital) PE0001 54,488 0 54,488 54,608 54,608 (120)

Other Property & Services Total 54,488 0 54,488 54,608 54,608 (120)

Plant & Equipment Total 445,502 0 445,502 532,241 445,756 (254)

Infrastructure Assets ‐ Roads

Transport

Buntine Marchagee Road (Capital) Council Funded RC002 32,441 0 32,441 32,500 32,500 (59)

Marchagee Track (Capital) Council Funded RC004 22,672 0 22,672 0 0 22,672

South Waddy Road (Capital) Council Funded RC005 0 0 0 0 0 0

Waddy Forest Road (Capital) Council Funded RC013 0 0 0 0 0 0

Teasdale Road (Capital) Council Funded RC026 11,466 0 11,466 11,500 11,500 (34)

Martin Road (Capital) Council Funded RC057 37,686 0 37,686 52,433 52,433 (14,747)

Howards Road (Capital) Council Funded RC058 27,927 0 27,927 28,000 28,000 (73)

Shack Track (Capital) Council Funded RC075 0 0 0 70,000 58,330 (58,330)

Ocean View Drive (Capital) Council Funded RC095 16,327 0 16,327 58,214 58,214 (41,887)

OCEAN VIEW DRIVE 2 (CAPITAL) RC295 0 0 0 67,279 67,279 (67,279)

Kau Street (Capital) Council Funded RC101 2,481 0 2,481 47,521 47,521 (45,040)

Bierman Street (Capital) Council Funded RC102 785 0 785 40,642 33,850 (33,065)

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Annual



Comment

$ $ $ $ $ $

SHIRE OF COOROW




NAIRN STREET (CAPITAL) COUNCIL FUNDED RC114 29,838 0 29,838 30,000 30,000 (162)

Beros Road (Capital) Council Funded RC126 4,083 0 4,083 4,000 4,000 83

Coorow‐Greenhead Road (Capital) Council Funded RC162 38,280 0 38,280 0 0 38,280

Coorow‐Latham Road (Capital) Council Funded RC164 32,927 0 32,927 33,000 33,000 (73)

South Waddy Road (Capital) R2R R2R005 138,109 0 138,109 132,710 132,710 5,400

Waddy Forest Road (Capital) R2R R2R013 62,342 0 62,342 119,142 115,672 (53,329)

WUBIN‐GUNYIDI ROAD (CAPITAL) R2R R2R165 166,167 0 166,167 161,612 161,611 4,556

Coorow‐Greenhead Road East (Capital) RRG RRG161 261,591 0 261,591 251,900 209,890 51,701

Coorow‐Greenhead Road West (Capital) RRG RRG162 521,930 0 521,930 481,072 481,072 40,859

Wubin‐Gunyidi Road (Capital) RRG RRG165 0 0 0 0 0 0

Transport Total 1,407,050 0 1,407,050 1,621,526 1,557,580 (150,529)

Infrastructure Roads Total 1,407,050 0 1,407,050 1,621,526 1,557,580 (150,529)

11


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Annual



Comment

$ $ $ $ $ $

SHIRE OF COOROW




Infrastructure Assets ‐ Drainage

Transport

Nairn Street Drainage (Capital) DC114 13,046 13,046 13,000 13,000 46

Transport Total 13,046 0 13,046 13,000 13,000 46

Infrastructure Assets ‐ Drainage Total 13,046 0 13,046 13,000 13,000 46

Footpaths

Transport

Ocean View Drive Footpath (Capital) FC095 0 0 0 26,748 22,270 (22,270)

OCEAN VIEW DRIVE FOOTPATH 2 (CAPITAL) FC295 0 0 0 24,748 20,600 (20,600)

Kau Street Footpath (Capital) FC101 0 0 0 16,748 13,940 (13,940)

Bierman Street Footpath (Capital) FC102 0 0 0 18,748 18,748 (18,748)

Transport Total 0 0 0 86,993 75,558 (75,558)

Footpaths Total 0 0 0 86,993 75,558 (75,558)

Other Infrastructure

Community Amenities

Coastal Cemetery (Capital) OC048 86,429 0 86,429 85,000 85,000 1,429

Community Amenities Total 86,429 0 86,429 85,000 85,000 1,429

Recreation And Culture

Leeman Foreshore Infrastructure (Capital) OC004 21,500 0 21,500 70,000 70,000 (48,500)

Maley Park Infrastructure (Capital) OC034 94,459 0 94,459 123,120 102,600 (8,141)

Wann Park Infrastructure (Capital) OC035 249 0 249 0 0 249

Morphett Park Infrastructure (Capital) OC042 482 0 482 0 0 482

Dynamite Bay Infrastructure (Capital) OC043 49,110 0 49,110 49,000 49,000 110

Lakes Park (Capital) OC046 3,356 0 3,356 0 0 3,356

Green Head Sports Club Other Infrastructure (Capital) OC062 0 0 0 22,700 22,700 (22,700)

Lot 601 Park, Peterson Place (Capital) OC064 18,052 0 18,052 20,000 20,000 (1,948)

Coorow Swimming Pool (Capital) OC037 25,217 0 25,217 90,000 75,000 (49,783)

Recreation And Culture Total 212,426 0 212,426 374,820 339,300 (126,874)

Other Infrastructure Total 298,855 0 298,855 459,820 424,300 (125,445)

Capital Expenditure Total 2,375,523 0 2,375,523 3,180,332 2,752,483 (376,961)

Level of Completion Indicators0%20%40% Percentage YTD Actual to Annual Budget60% Expenditure over budget highlighted in red.80%100%Over 100%

12


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11.3.3 POLICY 3.6.2 – PURCHASES OF GOODS & SERVICES Reporting Officer: Deputy Chief Executive Officer Responsible Executive: Acting Chief Executive Officer File Reference: ADM0437 – Corporate Management, Policy Manual Disclosure of Interest: Nil Attachments: Policy 3.6.2 Voting Requirements: Absolute Majority ____________________________________________________________________ Council Role:


REPORT PURPOSE: To amend the Purchasing Policy to reflect new legislated tender threshold. BACKGROUND: Amendments to the Local Government (Functions and General) Regulations 1996 commenced on 10 April 2020 which included an increase to the tender threshold from $150,000 to $250,000. In accordance with Regulation 11A(1), local governments must now prepare, adopt and implement a purchasing policy in relation to contracts for other persons to supply goods or services under $250,000. COMMENT: The Shire of Coorow Policy 3.6.2 – Purchases of Goods and Services currently reflects the former tender threshold of $150,000. It is recommended that it be amended to reflect the new tender threshold of $250,000 as the Shire may have a number of projects and contracts in the next budget which will fall between the two amounts and the cost of advertising and staff resources etc associated with complying with tender provisions could be avoided. STAKEHOLDER ENGAGEMENT: Nil FINANCIAL / RESOURCE IMPLICATIONS: There will be some savings in advertising costs and better utilisation of internal resources if quotations can be sought instead of tenders for goods/services between $150,000 and $250,000. STATUTORY ENVIRONMENT: Local Government (Functions and General) Regulations 1996, regulations: 11A(1). Purchasing policies for local governments


Page 34

POLICY IMPLICATIONS: Policy 3.6.2 - Purchases of Goods and Services STRATEGIC IMPLICATIONS: There are no strategic implications RISK IMPLICATION: There is a risk that potential suppliers may not be requested to quote for goods/services under the tender threshold and best value for money may not be achieved. OFFICER RECOMMENDATION: RESOLUTION: 2020/ Moved: Cr Seconded: Cr That Policy 3.6.2 – Purchases of Goods and Services as attached be amended to reflect the new Tender threshold of $250,000 by replacing $150,000 with $250,000 where it appears.

CARRIED /

Absolute Majority


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11.3.4 OFFER TO PURCHASE – 15 LONG STREET, COOROW Reporting Officer: Deputy Chief Executive Officer Responsible Executive: Acting Chief Executive Officer File Reference: A1103 Disclosure of Interest: Nil Attachments: Nil Voting Requirements: Absolute Majority ____________________________________________________________________ Council Role:


REPORT PURPOSE: To consider an offer of $7,000 by Mr Reggie Walker to purchase Lot 15 Long Street, Coorow. BACKGROUND: In 2013 the Shire of Coorow took possession of Lot 15 Long Street Coorow for non-payment of rates. The property was not sold at Auction on 8 November 2014, so was listed with Ray White Real Estate for sale. 12 months had expired after the date of auction, so the land was transferred to the Shire of Coorow. An offer of $10,000 for the purchase of Lot 15 Long Street from Mr Andrew Wills was accepted by the Shire in 2015, however Mr Wills had to withdraw from the proposed sale for financial reasons. The lot has remained on the open market at an asking price of $10,000 since that time with no further offers being received. COMMENT: An offer to purchase Lot 15 Long Street Coorow has been received from Mr Reggie Walker for the sum of $7,000. Mr Walker has recently purchased the adjoining residential property. This property assessed by an independent valuer at 30 June 2017 and given a market valuation of $7,500. Lot 15 Long Street is shown boarded in red in the below image:


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STAKEHOLDER ENGAGEMENT: Nil FINANCIAL / RESOURCE IMPLICATIONS: As well as the purchase price for the land, selling this vacant lot will provide a minor increase in revenue for the Shire through annual rates. STATUTORY ENVIRONMENT: Local Government Act 1995

3.58. Disposing of property

(1) In this section — dispose includes to sell, lease, or otherwise dispose of, whether absolutely or not; property includes the whole or any part of the interest of a local government in

property, but does not include money.

(2) Except as stated in this section, a local government can only dispose of property to — (a) the highest bidder at public auction; or (b) the person who at public tender called by the local government makes what is,

in the opinion of the local government, the most acceptable tender, whether or not it is the highest tender.

(3) A local government can dispose of property other than under subsection (2) if, before agreeing to dispose of the property —

(a) it gives local public notice of the proposed disposition — (i) describing the property concerned; and (ii) giving details of the proposed disposition; and


Page 40

(iii) inviting submissions to be made to the local government before a date to be specified in the notice, being a date not less than 2 weeks after the notice is first given;

and (b) it considers any submissions made to it before the date specified in the notice

and, if its decision is made by the council or a committee, the decision and the reasons for it are recorded in the minutes of the meeting at which the decision was made.

(4) The details of a proposed disposition that are required by subsection (3)(a)(ii) include —

(a) the names of all other parties concerned; and (b) the consideration to be received by the local government for the disposition;

and (c) the market value of the disposition — (i) as ascertained by a valuation carried out not more than 6 months

before the proposed disposition; or (ii) as declared by a resolution of the local government on the basis of a

valuation carried out more than 6 months before the proposed disposition that the local government believes to be a true indication of the value at the time of the proposed disposition.

POLICY IMPLICATIONS: Nil STRATEGIC IMPLICATIONS: Nil RISK IMPLICATION: Nil OFFICER RECOMMENDATION: RESOLUTION: 2020/ Moved: Cr Seconded: Cr That: 1) Subject to S3.58 of the Local Government Act 1995, Council agrees to sell Lot 15

Long Street, Coorow to Mr Reggie Walker under the following conditions: a. A non-refundable deposit of $1,000 be paid b. Sale price to be $7,000 (including GST) c. Any development of the land must comply with the Shire of Coorow Town

Planning Scheme No 3 and the Residential Design Codes 2) The previous valuation of $7,500 is considered to be a true indication of the current

value of the land.


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3) The intention to sell Lot 15 Long Street for $7,000 (including GST) be advertised in accordance with Section 3.58 of the Local Government Act 1995.

4) That the Acting Chief Executive Officer be authorised to sell Lot 15 Long Street,

Coorow to Mr Reggie Walker for $7,000 (including GST) should no submissions be received.

CARRIED / Absolute Majority


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11.3.5 PROPOSED DIFFERENTIAL RATES FOR 2020/2021 Reporting Officer: Acting Chief Executive Officer Responsible Executive: Acting Chief Executive Officer File Reference: ADM0085 – Rates & Valuations, Rate Classification,

General Disclosure of Interest: Nil Attachments: Ministerial Circular 03/2020 Voting Requirements: Simple Majority ____________________________________________________________________ COUNCIL ROLE


REPORT PURPOSE: Council is requested to revoke its previous decision to advertise differential rates for 2020/2021 as a result of a Ministerial Order and UV revaluations. BACKGROUND: At the Ordinary Meeting of Council held 15 April 2020, Council adopted its proposed differential rates for 2020/2021 and resolved to advertise for public submissions. Before advertising commenced, staff were made aware that the Minister for Local Government would be making an Order to modify the provisions of the Local Government Act 1995 and Regulations in relation to budgetary matters. This order was published on 8 May 2020 and is now in effect. A copy is attached for information. COMMENT: This year the Premier of Western Australia has implored all local governments to adopt a 0% rise on rates and fees/charges in recognition of the economic impact of the Covid 19 pandemic. When preparing an annual budget, a local government is required to have regard for the contents of its plan for the future (Community Business Plan). The Local Government (COVID-19 Response) Order 2020 has modified this requirement and instead local governments are to have regard to the consequences of the COVID-19 pandemic. The proposed differential rates will result in an overall 0% increase across each rating category in recognition of the Premier’s request and impact that the pandemic has had on many ratepayers.


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Differential Rates Extractive industries such as lime sand and dolomite generate a significant volume of heavy vehicle traffic on local roads, much more than a property used for agricultural purposes, therefore costing the Shire a lot more in road maintenance and renewal. The different methods required to calculate the UV for agricultural and mining properties means that mining assessments have a much lower value than agricultural ones. Agricultural property values are based on what the land could be sold for, whereas mining assessments are based on their annual rental value, multiplied by a factor which is determined by their size. Properties with a mining use therefore have a much lower unimproved value. The Shire of Coorow does not charge a heavy haulage fee, or extractive industry licence, so under the current valuation regime, the only way that mining properties can be required to contribute to the maintenance of the road network fairly is for them to be on a much higher rate in the dollar than agricultural properties. The higher rate in the dollar brings their rates more closely to that of agricultural properties. The proposed differential rates are therefore based on having three categories of UV rates as follows:

• UV Agricultural • UV Exploration • UV Mining

The proposed differential rates in the dollar for UV rated properties would mean that the average rates levied on agricultural assessments (excluding minimums) would be $10,249. The average mining assessment (excluding minimums) would be $7,290. If the mining assessments were rated using the same rate in the dollar as agricultural assessments, their average rate would only be $880, as all but four assessments would be on the minimum rate. The average exploration assessment (excluding minimums) proposed would be $1,151, but if they were rated using the same rate in the dollar as agricultural assessments, their average rate would be $815, as all assessments would be on the higher minimum rate of $815. Differential rating allows Council to maintain a degree of parity between rates levied on all unimproved value (UV) assessments within the Shire of Coorow rate base whilst providing income annually to allow for the service requirements of all property owners. One of the reasons for levying the higher rate in the dollar is the greater number of truck movements on local roads generated by extractive industries such as lime sand and dolomite compared to agricultural uses. The Shire of Coorow does not charge a


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heavy haulage fee, nor extractive industry fees so the only income generated for the shire by these users are their municipal rates. One school of thought is that by passing on the cost of increased heavy vehicles on the road to the extractive industries, they in turn can pass them on to their customers, not all of whom are based within the Shire. It is worth noting that while both UV Agriculture and UV Mining are based on ‘Unimproved Values’ provided by the Valuer General, the Valuation of Land Act 1978 prescribes different methods of calculating each one. The unimproved valuation of land utilised for agricultural purposes is the capital amount that the property (not including improvements) might reasonably be expected to realize upon sale. The unimproved valuation of land used for mining tenements is calculated on the annual rent per hectare times a factor, the amount of which depends on the number of hectares and type of lease held. The average valuation of agricultural assessments is $659,263, whereas the average mining assessment valuation is $25,279 and exploration assessment is $5,827. The below table shows the differential rates adopted by the Shire of Coorow and its neighbouring Shires for 2019/20. General Rate Carnamah Coorow Dandaragan Perenjori General GRV 0.15485 0.127723 0.080156 0.082712 GRV - Mining 0.30970 0.082712 GRV - Rural 0.15485 UV – Agriculture 0.01858 0.015678 0.007115 0.01900 UV – Mining 0.01858 0.168627 0.007115 0.34255 UV – Exploration 0.110295 0.25500 Minimum Rate General GRV 770 815 947 349 Lesser GRV 715 GRV - Mining 770 349 GRV - Rural 380 UV - Agriculture 770 815 894 349 UV - Mining 770 815 894 349 UV – Exploration 300 349 Lesser UV

STAKEHOLDER ENGAGEMENT: The proposed differential and minimum rates will be published on the Shire’s website as required by the modified requirements of Section 6.36.


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FINANCIAL / RESOURCE IMPLICATIONS: The method and level of rating adopted by Council will have a significant impact on the draft 2020/2021 budget and have a cumulative effect on future budgets. The recommended rates in the dollar are based on an overall rates increase of 0%. Every 1% rates increase equates for an additional $33,464 in revenue in the first year, and over a ten year period compounds to a minimum of $334,640. STATUTORY ENVIRONMENT: Local Government Act 1995 Part 6 — Financial management, Division 2 — Annual budget, Subdivision 2 — Categories of rates and service charges POLICY IMPLICATIONS: There are no policy implications STRATEGIC IMPLICATIONS: The current Shire of Coorow Long Term Financial Plan included an overall rate increase of CPI + 2% in 2020/2021 and each year following that, but does not specify the make up of the rates. RISK IMPLICATION: There are no significant risk implications in replacing the previously proposed differential rates with the ones in this report.


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OFFICER RECOMMENDATION: RESOLUTION: 2020/ Moved: Cr Seconded: Cr That the Shire:

1) Rescind its decision in regard to Item 11.3.3 Proposed Differential Rates for 2020/2021 from the Ordinary Meeting of Council held 15 April 2020.

2) Publish the following differential rates for the 2020/2021 financial year on its

website with an updated version of the Objects and Reasons for Differential Rates:

Differential

Rating Type Rate in

the Dollar Minim

um Rate UV

Agricultural 1.4892 $815

UV Mining 16.7291 $815 UV

Exploration 11.0295 $300

3) Note that the purpose in adopting these differential rates is consistent with

the Shire’s previously adopted Objects and Reasons for Differential Rates, and results in an overall 0% rating increase across each category.

Note that Ministerial approval and notice seeking public submissions is not required as the rate in the dollars are the same or less than those approved for 2019/2020.



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Hon David Templeman MLAMinister for Local Government; Heritage; Culture & the Arts

Our Ref: 66-12319

TO ALL LOCAL GOVERNMENTS

CIRCULAR N° 03-2020

LOCAL GOVERNMENT (COVID-19 RESPONSE) ORDER 2020

As you would be aware, the Local Government Amendment (COVID-19 Response)Act 2020 was passed by Parliament on 16 April 2020 and came into effect on21 April 2020.

This Act provided a power to enable the Minister to modify or suspend provisions ofthe Local Government Act 1995 and Regulations while a State of Emergencydeclaration is in force and where the Minister considers that such an order isnecessary to deal with the consequences of the COVID-19 pandemic.

I have made the first Order under this legislation to deal with issues relating torequirements to hold public meetings, for access to information when council officesare closed due to the COVID-19 pandemic, and budgetary matters. This will bepublished on 8 May 2020, coming into effect on that day.

Some of these measures will assist ratepayers who have been adversely impactedby this COVID-19 pandemic. As you are displaying through your actions in freezingrates, fees and charges during these extraordinary times, it is vital to maximiseassistance to get our economy back on track.

The Order recognises that the local government is in the best position to assesswhether a person in their district is in hardship but does provide that thoseresidential and small business ratepayers that are suffering financial hardshipbecause of the consequences of the COVID-19 pandemic will not be chargedinterest in the 2020/21 financial year. Local governments will be able to assesswhether any other ratepayers are in hardship and should be provided withassistance.

Local governments are encouraged to adopt a financial hardship policy. This willaddress the manner in which the local government will deal with financial hardshipthat may be suffered by ratepayers and other persons who are required to makepayments to the local government. Local governments with such a policy in placewill be able to charge a maximum of 5.5% for instalment interest as they are formally

Level 7, Dumas House, 2 Havelock Street, West Perth, Western Australia 6005Telephone: +61 8 6552 5400 Facsimile: +61 8 6552 5401 Email: [email protected]


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recognising and providing for other groups that are in hardship. This recognisesthat the 5.5% will apply to those who wish to pay by instalments but are not inhardship.

If a local government does not have in place a financial hardship policy, the interestrate that can be charged for payment by instalments will be capped at 3%.

Interest rates that can be charged for late payments are being capped at 8%, whichaligns with the interest rate charged by the Australian Taxation Office.

Other measures will directly assist local governments through removing red tapeand compliance requirements which are not considered to be necessary while localgovernments and the community deal with the pandemic. This includes a numberof measures that are designed to assist local governments that resolve to notincrease the rate in the dollar from those applied last year.

The attachment details the modifications made to the operation of the LocalGovernment Act 1995.

The Department of Local Government, Sport and Cultural Industries and theWestern Australian Electoral Commission will continue to monitor council vacancies

0 8 MAY 2020


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Local Government (COVID-19 Response) Order 2020

The order deals with issues relating to requirements to hold public meetings, accessto information when council offices are closed due to the COVID-19 pandemic, andbudgetary matters, including financial hardship of ratepayers.

Specifically, the order provides for:

Clause 2: Commencement

The order comes into effect on the day it is published in the Gazette.

Clause 3: Terms Used

Key terms relate to the definition of an excluded person. This is a residential orsmall business ratepayer who is considered by the local government to be sufferingfinancial hardship as a consequence of the COVID-19 pandemic.

A small business has the same meaning as under the Small Business DevelopmentCorporation Act 1983:

a business undertaking which is wholly owned and operated by an individualperson or by individual persons in partnership or by a proprietary company withinthe meaning of the Corporations Act 2001 of the Commonwealth and which

(i) has a relatively small share of the market in which it competes; and(ii) is managed personally by the owner or owners or directors, as the case

requires; and(iii) is not a subsidiary of, or does not form part of, a larger business or

enterprise.

Clause 4: Section 5.27 - Electors eneral meetings

Section 5.27 of the Local Government Act requires a general meeting of electors tobe held once every financial year and within 56 days after the local governmentaccepts the annual report for the previous financial year. Holding such a meetingwould breach the prohibition on gatherings direction and could result in health risksto attendees.

The requirement for the holding of a general meeting of electors under section5.27(2) has been modified so that any meeting for 2019/20 that has not yet beenheld is to be held within 56 days of the date on which the state of emergencydeclaration ceases to have effect, but not while a declaration is in effect.


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Clause 5: Section 5.28 modified - Electors special meetings

Section 5.28 requires a local government to hold an electors special meeting within35 days of receiving a request from 5% (or 100 if less) of the electors of that district.At least 14 days notice must be given of the meeting. As above this presents healthrisks and is contrary to the prohibition on public gatherings.

The requirement for holding an electors’ special meeting under section 5.28(4) hasbeen modified so that any meeting is to be held within 35 days after the end of thestate of emergency declaration but not while a declaration is in effect.

Clause 6: Section 5.94 modified - Public can inspect certain local governmentinformation

Section 5.94 provides a list of information that must be available for inspection freeof charge to a person who attends the local government office during office hours.The effect of the pandemic has been to close local government offices, removingthe ability for members of the community to access information thereby reducingtransparency and accountability. Access to information is likely to become evenmore important to the community as the length of the state of emergency extendsand the economic impacts on local governments and the community become morepressing.

Section 5.94 is modified so that during the closure of a local government office dueto the COVID-19 pandemic, the local government is to provide access to theinformation listed in 5.94 either by having it available on their website or by providinga free copy to the person by mail or email. This does not override the currentprovisions in section 5.95 which limits access to certain information, includingconfidential information.

Clause 7: Section 6.2 modified - Local overnment to prepare annual budget

Section 6.2(2) provides that in preparing the annual budget, the local governmentis to have regard to the contents of the plan for the future. The aspirations of thecommunity as reflected in the plan for the future are not at the current time the bestbasis for the 2020/21 budget, but rather the more pressing and unforeseenconsequences of the COVID-19 pandemic.

Section 6.2(1) has been modified such that in preparing the budget for 2020/21 alocal government is to have regard to the consequences of the COVID-19 pandemic(rather than the plan for the future, although this can also be considered by the localgovernment).


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Clause 8: Section 6.13 modified - Interest on money owing to local governments

Section 6.13 allows local governments to charge interest on o erdue amounts, withthe rate set by the local government in its budget. The rate is capped in the LocalGovernment (Financial Management) Regulations 1996 at 11%.

Recognising the substantial hardship likely to be caused because of consequencesof the pandemic, local governments will be unable to charge interest on moneyowing by any person they consider to be in financial hardship in thesecircumstances for the 2020/21 financial year.

Local governments will need to resolve (when setting their interest rate on overdueamounts) that this will not apply to a person who is considered by the localgovernment to be suffering hardship as a consequence of the COVID-19 pandemic.

The interest that can be charged on amounts owing by others will be capped at 8%- the interest rate used by the Australian Taxation Office on overdue amounts.

Clause 9: Section 6.33 modified - Differential eneral rates

Where a local government is imposing differential rates and the rate to be imposedon one category is more than twice the lowest differential rate to be imposed inanother category, Ministerial approval must be obtained under section 6.33(3).

Local governments that resolve to freeze their rates in the dollar at or below thoseimposed in 2019/20 recognising the economic impacts of the pandemic, are beingreleased from the requirement to obtain Ministerial approval if they obtainedMinisterial approval under this section in that year. This reduces the regulatoryburden on those local governments that are assisting ratepayers by not increasingthe rate in the dollar.

Clause 10: Section 6.34 modified - Limit on revenue or income from eneral rates

Section 6.34 provides that local governments must set their rates at a level to coverbetween 90 and 110% of the estimated budget deficiency, unless the Ministerotherwise approves. As local governments have been requested to freeze their ratein the dollar, it is likely that, due to the effects of the COVID-19 pandemic, revenuefrom rates will be less than 90% of the estimated deficiency.

Recognising that local governments are likely to be receiving less income, section6.34(b) is modified so that the yield from the general rate for the 2020/21 financialyear is not to be less than 80% of the amount of the budget deficiency (rather than90%). Approval for less than 80% (or more than 110%) can still be sought from theMinister for Local Government.


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Clause 11: Section 6.35 modified - Minimum payment

Section 6.35 allows a local government to set a minimum payment for rates on anyland. Certain conditions apply, including that more than half of the properties in acategory cannot be paying the minimum. An exception to this is if there is adifferential rating category for vacant land for which a minimum is applied, and if theMinister approves more than half the properties being subject to the minimum.

The effect of this variation is to remove the requirement for Ministerial approval forthose local governments that are not increasing their differential rates or minimumpayments from 2019/20 and that obtained Ministerial approval for those minimumpayments last year. This reduces the regulatory burden on those local governmentsthat are assisting ratepayers by not increasing the rate in the dollar or the minimumpayment.

Clause 12: Section 6.36 modified - Local government to ive notice of certain rates

Section 6.36 sets out the process that a local government must go through toadvertise and set their rates. This requires local governments that are seeking toimpose differential general rates or minimum payments to give local public noticeand seek submissions for a minimum of 21 days and then consider thesesubmissions before imposing the rates. A document describing the objects of, andreasons for, each proposed rate must be prepared and published on the localgovernment s website.

To address the economic consequences of the COVID-19 pandemic, it isunderstood that many local governments are in the process of agreeing to freezetheir rates in the dollar at the levels imposed in 2019/20. For those localgovernments, the process set out in 6.36 is unnecessary, meaningless and costlyin a time when budgets are being negatively impacted.

Local governments that resolve to set differential general rates and minimumpayments at a level no higher than that imposed in 2019/20 will not have to complywith the provisions of section 6.36.

Local governments will be required to publish the differential general rates andminimum payments on their website within ten days of the resolution or of this noticecoming into effect whichever is later.

Clause 13: Section 6.45 modified - otions for ayment of rates or service charges

Section 6.45(3) allows a local government to charge an additional amount if apayment of rates or service charge is made in instalments. This is capped at 5.5%in the Local Government (Financial Management) Regulations 1996.


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Recognising the substantial hardship likely to be caused to many ratepayersbecause of consequences of the pandemic, local governments will be unable tocharge excluded persons interest for payment by instalments for the 2020/21financial year.

If a local government does not have in place a financial hardship policy, the interestrate that they can charge other ratepayers for payment by instalments will becapped at 3%.

Local governments that have a policy in place that addresses the manner in whichthe local government will deal with financial hardship that may be suffered byratepayers and other persons who are required to make payments to the localgovernment will be able to charge a maximum of 5.5%. This recognises that thelocal government will be able to distinguish those that are in hardship and makeappropriate provisions regarding their payments.

Clause 14: Section 6.51 modified - Accrual of interest on overdue rates or servicecharges

Section 6.51 allows local governments to charge interest on overdue amounts ofrates and service charges. The rate is set by the local government by resolutionwhen it imposes the rate or service charge. The rate is capped in the LocalGovernment (Financial Management) Regulations 1996 at 11%.

Recognising the substantial hardship likely to be caused to many ratepayersbecause of consequences of the pandemic, local governments will be unable tocharge excluded persons interest on overdue rates or service charges for the2020/21 financial year. This will be reflected in a resolution of council when theyset the interest rate.

This provides relief for those residential and small business ratepayers who areexperiencing financial hardship because of the COVID-19 pandemic. Localgovernments will determine the applications for hardship.

The interest that can be charged on amounts owing by others will be capped at 8%-the interest rate used by the Australian Taxation Office on overdue amounts.

Clause 13: Section 9.51 modified - Givin documents to local overnments

Section 9.51 deals with the giving of documents and states that a document is givento a local government if given personally to an employee of the local government atits office or sent by post to the local government s postal address. A consequenceof the pandemic is that any hand delivery is no longer possible.

Section 9.51 has been modified so that a document may be given to a localgovernment electronically.


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Recognising the substantial hardship likely to be caused to many ratepayersbecause of consequences of the pandemic, local governments will be unable tocharge excluded persons interest for payment by instalments for the 2020/21financial year.

If a local government does not have in place a financial hardship policy, the interestrate that they can charge other ratepayers for payment by instalments will becapped at 3%.

Local governments that have a policy in place that addresses the manner in whichthe local government will deal with financial hardship that may be suffered byratepayers and other persons who are required to make payments to the localgovernment will be able to charge a maximum of 5.5%. This recognises that thelocal government will be able to distinguish those that are in hardship and makeappropriate provisions regarding their payments.

Clause 14: Section 6.51 modified - Accrual of interest on overdue rates or servicechar es

Section 6.51 allows local governments to charge interest on overdue amounts ofrates and service charges. The rate is set by the local government by resolutionwhen it imposes the rate or service charge. The rate is capped in the LocalGovernment (Financial Management) Regulations 1996 at 11%.

Recognising the substantial hardship likely to be caused to many ratepayersbecause of consequences of the pandemic, local governments will be unable tocharge excluded persons interest on overdue rates or service charges for the2020/21 financial year. This will be reflected in a resolution of council when theyset the interest rate.

This provides relief for those residential and small business ratepayers who areexperiencing financial hardship because of the COVID-19 pandemic. Localgovernments will determine the applications for hardship.

The interest that can be charged on amounts owing by others will be capped at 8%the interest rate used by the Australian Taxation Office on overdue amounts.

Clause 13: Section 9.51 modified Giving documents to local overnments

Section 9.51 deals with the giving of documents and states that a document is givento a local government if given personally to an employee of the local government atits office or sent by post to the local government s postal address. A consequenceof the pandemic is that any hand delivery is no longer possible.

Section 9.51 has been modified so that a document may be given to a localgovernment electronically.


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12. QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN

GIVEN:

13. URGENT BUSINESS APPROVED BY THE PERSON PRESIDING OR BY DECISION:

14. MATTERS BEHIND CLOSED DOORS:

PROCEDURAL RESOLUTION: 2020/ Moved: Cr Seconded: That council goes behind closed doors for Item 14.1


Members of the public left the meeting at PROCEDURAL RESOLUTION: 2020/ Moved: Cr Seconded: Cr That council comes from behind closed doors for Item 14.1.



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14.1. CONTRACT FOR AN ACTING CHIEF EXECUTIVE OFFICER

Reporting Officer: Acting Chief Executive Officer Responsible Executive: Acting Chief Executive Officer File Reference: ADM0651 Disclosure of Interest: Acting Chief Executive Officer is the author of this item Attachments: Confidential (under separate cover) Voting Requirements: Simple Majority ____________________________________________________________________

COUNCIL ROLE


REPORT PURPOSE: Council may appoint a qualified person in the capacity of Acting Chief Executive Officer for a period of up to twelve (12) months.


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15. DATE OF NEXT MEETING:

15.1 ORDINARY MEETING OF COUNCIL

Ordinary Meeting Next meeting of Council will be held on Wednesday 17 June 2020 from 5.00 pm.

16. CLOSURE:There being no further business the President, Cr Girando closed the meetingat pm


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