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MUNICIPAL COUNCIL OF ROXBY DOWNS Richardson Place PO Box 124 Roxby Downs SA 5725 Phone 08 8671 0010 Email: [email protected] Web; www.roxbvdowns.sa.aov.au ABN: 68 284 130 046 NOTICE OF ORDINARY COUNCIL MEETING Notice is hereby given that the next ORDINARY COUNCIL MEETING will be held in the Council Office Boardroom, 6-8 Richardson Place, Roxby Downs on WEDNESDAY 27 JUNE 2018 commencing at 4:00pm. ' A copy of the Agenda for the above meeting is attached to this notice. The meeting is open to the public and members of the community are welcome to attend.

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  • MUNICIPAL COUNCIL OF ROXBY DOWNSRichardson Place

    PO Box 124 Roxby Downs SA 5725

    Phone 08 8671 0010 Email: [email protected] Web; www.roxbvdowns.sa.aov.au

    ABN: 68 284 130 046

    NOTICE OF ORDINARY COUNCIL MEETING

    Notice is hereby given that the next ORDINARY COUNCIL MEETING will be held in the Council Office Boardroom, 6-8 Richardson Place, Roxby Downs on WEDNESDAY 27 JUNE 2018 commencing at 4:00pm. '

    A copy of the Agenda for the above meeting is attached to this notice.

    The meeting is open to the public and members of the community are welcome to attend.

    mailto:[email protected]://www.roxbvdowns.sa.aov.au

  • MUNICIPAL COUNCIL OF ROXBY DOWNS Richardson Place

    PO Box 124 Roxby Downs SA 5725

    Phone 08 8671 0010

    Email: [email protected] Web: www.roxbydowns.sa.gov.au

    ABN: 68 284 130 046

    AGENDA

    Meeting

    MUNICIPAL COUNCIL OF ROXBY DOWNS Ordinary Council Meeting

    Meeting Date & Time Wednesday 27 June 2018 at 4:00pm

    Location Council Office Boardroom, 6-8 Richardson Place, Roxby Downs

    1. Opening Statement I wish to acknowledge the Kokatha peoples, the traditional owners of the land on which we meet today and pay my respect to their Elders past and present and extend that respect to other Aboriginal and Torres Strait Islander people who may be present today.

    2. Confirmation of Minutes of the Previous Meeting That the Minutes of the Council Meeting held on 30 May 2018 be confirmed as a true and accurate record of proceedings. Page 3

    3. Adoption of Council Resolutions 3.1 Draft Annual Business Plan and Budget 2018/2019 Page 7 3.2 FY2019 Valuation, Annual Rates Charges and Levy, and Municipal Rating Policy Page 43 3.3 Electricity, Water and Sewerage Tariffs, Fees and Charges FY19 Page 59 3.4 Consolidated Fees and Charges Register FY19 Page 66 3.5 Audit Committee Meeting Minutes 4 June 2018 (Subject to Confirmation) Page 77 3.6 Review of Draft Terms of Reference of the Audit Committee Page 81 3.7 Credit Card Policy Page 92 3.8 Rate Debt Recovery Policy Page 97 3.9 Contract Approval – Townscape Maintenance Services Page 102

    4. Reports for Information 4.1 Chief Executive Report Page 105 4.2 Development Application Decisions Page 107 4.3 Grant Register Page 109

    5. Community Presentations, Petitions and Deputations Nil

    6. Next Meeting The next Ordinary Council Meeting is scheduled for 25 July 2018 at 4:00pm - Council Office Boardroom, 6-8 Richardson Place, Roxby Downs, unless advised otherwise, by notice on the Council’s website.

    7. Closure

    mailto:[email protected]://www.roxbydowns.com/

  • MUNICIPAL COUNCIL OF ROXBY DOWNS Richardson Place

    PO Box 124 Roxby Downs SA 5725

    Phone 08 8671 0010

    Email: [email protected] Web: www.roxbydowns.sa.gov.au

    ABN: 68 284 130 046

    MUNICIPAL COUNCIL OF ROXBY DOWNS Page 1 of 4

    MINUTES

    Meeting

    MUNICIPAL COUNCIL OF ROXBY DOWNS

    Ordinary Council Meeting

    Meeting Date & Time Wednesday 30 May 2018 at 6:00pm Location Present Staff Present

    Apologies

    Council Office Boardroom, 6-8 Richardson Place, Roxby Downs

    Geoff Whitbread (Administrator)

    Roy Blight (Chief Executive), Stuart Edwards (Group Manager Essential

    Services & Assets), Drew Ellis (Group Manager Corporate Services),

    Tony Weir (Group Manager Lifestyle & Sport), Juliette Demaine

    (Communications), Amanda Astri (Research),Kerrie Thomas (Executive

    Support)

    Nil

    1. Council Opening

    The meeting commenced at 6:00pm. Mr Whitbread acknowledged the Kokatha peoples, the traditional owners of the land on which we meet today and paid respect to their Elders past and present and extended that respect to other Aboriginal and Torres Strait Islander people who may be present today. Mr Whitbread also welcomed the public gallery in attendance.

    2. Confirmation of Minutes of the Previous Meeting RESOLVED: The Minutes of the Council Meeting held on 18 April 2018 were confirmed as a true and accurate record of proceedings.

    3. Council Business

    3.1 Third Quarter Budget Review PURPOSE: To consider a review of Council’s 2017/18 budget performance and associated

    matters. RESOLVED: That Council adopt the Third Quarter Budget Review 2017/18. 3.2 Waste Management Contract – Variation PURPOSE: To consider variations to the Waste Management Contract negotiated

    with BSH Waste Solutions Pty Ltd which result in a reduction in costs to Council and an extension of the term of the contract to 2023, (the extension being available in accordance with the February 2016 agreement).

    RESOLVED: That the Agreement for Variation & Extension of Waste Contract with

    BSH Waste Solutions Pty Ltd for the provision of Waste Management Services to

    Page 3

    mailto:[email protected]://www.roxbydowns.com/

  • MUNICIPAL COUNCIL OF ROXBY DOWNS Page 2 of 4

    the community of Roxby Downs until 28 February 2023 be agreed to and the

    Administrator and Chief Executive be authorised to execute the contract under seal

    pursuant to S38 of the Local Government Act 1999.

    3.3 Whistleblower Protection Policy

    PURPOSE: To review the Whistleblower Protection Policy and appoint a responsible officer. RESOLVED: 1. That Council adopt the Whistleblower Protection Policy as presented, and

    that the policy be published on the Council’s website.

    2. That Council appoint Ms Michelle Hales Group Manager Governance and

    Community as Council’s Responsible Officer pursuant to Section 302B of

    the Local Government Act 1999.

    3.4 Fraud and Corruption Prevention Policy PURPOSE: To review the Fraud and Corruption Prevention Policy and to appoint a

    Responsible Officer. RESOLVED:

    1. That Council adopt the Fraud and Corruption Policy as presented, and that

    the policy be published on the Council’s website.

    2. That Council appoint Ms Michelle Hales, Group Manager Governance and

    Community at Council’s Responsible Officer pursuant to Section 302B of

    the Local Government Act 1999.

    3.5 Complaints Policy PURPOSE: To adopt a new Complaints Policy.

    RESOLVED: That Council adopt the new Complaints Policy as presented, and that the policy be published on the Council’s website.

    3.6 New Delegations – Fines Enforcement and Debt Recovery Act 2017 and

    Expiation of Offences Act 1996 PURPOSE: To request Council to delegate to the Chief Executive the powers and

    functions of the Fines Enforcement and Debt Recovery Act 2017 and Expiations of Offences Act 1996.

    RESOLVED:

    1. The Council hereby revokes its previous delegations to the Chief Executive of

    those powers and functions under the Expiation of Offences Act 1996 to take

    effect from 30 April 2018.

    2. In exercise of the power contained in Section 44 of the Local Government Act

    1999, delegates, to the person occupying the office of Chief Executive, the

    powers and functions under the Expiation Offences Act 1996 and the Fines

    and Enforcement and Debt Recover Act 2017 contained in the attached

    Instruments of Delegation to take effect from 30 April 2018 subject to the

    Page 4

  • MUNICIPAL COUNCIL OF ROXBY DOWNS Page 3 of 4

    conditions or limitations indicated in the Schedule of Conditions contained in

    each proposed Instrument of Delegation.

    3. The Chief Executive is authorised to further delegate these powers and

    functions in accordance with Sections 44 and Section 101 of the Local

    Government Act 1999, as the Chief Executive Officer sees fit, unless otherwise

    indicated in the Schedule of Conditions contained in each such proposed

    Instrument of Delegation, and in exercising these powers to delegate, the

    Chief Executive must firstly consult with the Administrator.

    3.7 Proposed Dog and Cat Registration Fees 2018/2019

    PURPOSE: To adopt new dog and cat registrations fees for 2018/2019. RESOLVED: That Council approve the dog and cat registration fee structure for 2018/2019.

    3.8 Proposal to Name Park in Curdimurka Street Consultation Outcomes

    PURPOSE: To recommend naming of the park located in Curdimurka Street, Roxby Downs as “Rotary Park” based on feedback received from the community during the consultation period. RESOLVED: 1. That Council receive and notes community feedback collected during the public

    consultation period. 2. That Council in light of the community feedback received Council approve the proposal

    to name the park Rotary Park. 3. That Council accept the donation of the BBQ and placement within the park as a 10

    year commemorative project. 4. That, in support of this project, Council will connect power, install a shade shelter and

    signage.

    3.9 STARCLUB Funding

    PURPOSE: To formalise the grant offer of $35,000 from the Officer for Recreation, Sport and Racing for the continuation of the STARCLUB Program for 2018-2021 (3 years).

    Page 5

  • MUNICIPAL COUNCIL OF ROXBY DOWNS Page 4 of 4

    RESOLVED: 1. That Council acknowledge the offer of grant funding from the Office of

    Recreation, Sport and Racing for the amount of $35,000 for each of the years

    2018/19, 2019/20 and 2020/21.

    2. That Council notes with disappointment that the grant offer falls $20,000 short

    for each year of the program, comprising of a total cutback of $60,000 over 3

    years, whilst the expectations for results from the program have not

    diminished.

    3. Accordingly the Council accepts the Grant Agreement without prejudice to

    enable continuity of the program, whilst seeking direct intervention by the

    Minister for Recreation, Sport and Racing, Hon. Corey Wingard to restore the

    funding to the STARCLUB Program.

    3.10 Council Appointment of Staff to External Committees

    PURPOSE: To appoint Group Manager Lifestyle and Sport, Tony Weir as Council representative to the Roxby Downs Area School Governing Council. RESOLVED: That Council appoint the Group Manager Lifestyle and Sport as the Council representative for the Roxby Downs Area School Governing Council for a

    term of 2 years ending on 30 June 2020.

    4. Reports for Information The Council noted the following reports for information:

    Chief Executive Update Grant Register

    5. Community Presentations, Petitions and Deputations

    Nil

    6. Next Meeting

    The next Ordinary Council Meeting for the Municipal Council of Roxby Downs is scheduled for 27 June 2018 at 4:00 pm - Council Office Boardroom, 6-8 Richardson Place, Roxby Downs, unless advised otherwise, by notice on the Council’s website.

    7. Closure The meeting closed at 6:30pm.

    ………………………………………………. Geoff Whitbread Administrator 27 June 2018

    Page 6

  • MUNICIPAL COUNCIL OF ROXBY DOWNS Richardson Place

    PO Box 124 Roxby Downs SA 5725

    Phone 08 8671 0010 Email: [email protected] Web: www.roxbydowns.sa.gov.au

    ABN: 68 284 130 046

    REPORT FOR ORDINARY COUNCIL MEETING Meeting Date 27 June 2018

    Title of Report Annual Business Plan and Budget 2018/19

    1. Purpose

    To adopt the Annual Business Plan and Budget 2018/19.

    2. Recommendation

    That Council

    1. Pursuant to Section 12 of the Roxby Downs (Indenture Ratification) Act 1982, and inaccordance with Clauses 23 and 29 of the Schedule to that Act, and in exercise of the powerscontained in Section 123 of the Local Government Act 1999, and having considered allsubmissions in accordance with Section 123(6) of the Act:

    • Pursuant to Section 123(6) of the Local Government Act 1999, the Council adopts (withoutamendment) the 2018/19 Annual Business Plan as set out in the attachment to the reportto Council dated 27 June 2018 entitled Draft Annual Business Plan and Budget 2018/19;

    And

    • Pursuant to Section 123(7) of the Local Government Act 1999, having considered the Budget as set out in the attachment to the report to Council dated 27 June 2018 entitled Draft Annual Business Plan and Budget 2018/19 in conjunction with the Council’s Annual Business Plan, and that budget being consistent with that Annual Business Plan, the Council adopts that Budget;

    2. Will ensure that a summary of the Annual Business Plan is prepared, published, madeavailable, and provided with the first rates notice sent to ratepayers for the 2018/19 financialyear, in accordance with Section 123(9) of the Local Government Act 1999.

    3. Background

    Each year Council is required to adopt an Annual Business Plan (ABP) and Budget.

    4. Discussion

    The Annual Business Plan sets out the priorities for the Council over the next 12 months.The Budget sets the spending and income parameters as prescribed by the AnnualBusiness Plan.

    Both documents have been framed around the following underlying principles: Council will focus on delivery of its core services Council will be proactive in seeking internal process improvements and cost

    management initiatives Council will have a new focus on investing in the renewal of its existing assets Any new major expenditure initiatives will need to be supported by a rigorous

    business case The business case for any new major expenditure project must have explored the

    potential for joint funding from external parties and stakeholders.Both documents are responsible and appropriate. They reflect Council’s commitment toeffective financial management, are based on the needs and expectations of the community, and have been developed through a consultative process.

    Page 7

    mailto:[email protected]://www.roxbydowns.com/

  • The Budget comprises two key parts: the ‘Operating Budget’ and the ‘Capital Budget’. Operating Budget The following discusses some of the Operating Budget’s major components: Rates, Tariffs and Charges (Income) This forms the major source of income for Council, so is vital in terms of the viability of the overall budget. Solid cost management over the last two financial years has put Council in a position where it is now able to hold rates, tariffs and user charges to below the CPI rate. Rates on properties will be held at the same level as for the last financial year (nominally). For properties where a significant increase in rates over last year’s is realized, a 5% ‘cap’ has been provided for. Council has undertaken modeling on the rates required to fund the budget and they are discussed more fully in a separate report to Council. Power and Water tariffs will increase by 1.0% (nominally). Solar feed-in tariffs will remain unchanged at 16.3 cents. Total revenue from User Charges (ie. sales from Water, Power and Roxbylink) is expected to decrease by 1.2% on the 2017/18 budget. Municipal Deficit Funding (Income) The budget includes a combined $600,000 contribution from the State Government and BHP as prescribed under the Roxby Downs (Indenture Ratification) Act 1982. The Municipal Deficit after the contribution from the State Government and BHP for 2018/19 is $1.999m. Employee Costs (Expense) The remuneration budget allows for a pre-negotiated automatic increase of 1.5% in January 2019 - a term under the Enterprise Bargaining Agreement of 2017. Despite this, overall employee costs are expected to be 8.7% lower than for the previous financial year’s budget. Materials, contracts and other expenses (Expense) A decrease of 2.7% from the previous year’s budget is expected in this expenditure category. Depreciation (Expense) The draft budget includes depreciation expense of $3.17m. This is an estimate and may vary due to asset revaluations which are currently underway. Operating Surplus (‘The Bottom Line’ of the Operating Budget) Relating to Council’s day to day activities and defined as Income less Expenses, the 2018/19 budget notes a surplus of $105,000. Council also has a healthy cash position and has no external loan liabilities. It does not plan to take out any debt in the coming financial year. Capital Budget Capital spending priorities will be focused on ‘renewal’, not ‘building’. The following shows Council’s capital budget summary for 2018-2019 (all amounts x $1,000): Expenditure on renewal/replacement of assets $2,666 Expenditure on new/upgraded assets $1,222 Funding rec’d specifically for new/upgraded assets ($1,760)

    Page 8

  • Some examples of capital expenditure items are: Emu Walk project $400,000 carried forward from 2017-2018 (offset by $200,000 external funding) Multi-purpose pumptrack $500,000 (offset by $450,000 external funding) Road re-seals $251,000 Ovals – perimeter seating $ 55,000 Shade sail for splashpad $ 30,000 Stormwater improvements $ 50,000 Richardson Pl toilets $100,000 (Refer to the Annual Business Plan for a more extensive list of capital expenditure items).

    5. Policy Implications 5.1 Financial/Budget

    Once adopted, the Annual Business Plan and Budget will ensure disciplined, controlled and systematic financial management at all levels within Council.

    5.2 Resources No additional resources are required to implement the recommendation.

    5.3 Legal and Risk Management

    None

    6. Report Consultation Public Consultation Senior Management Team

    7. Attachments Draft Annual Business Plan & Budget 2018/19

    8. Report Authorisers Drew Ellis Group Manager Corporate Services

    Page 9

  • Appendix APage 10

  • ACKNOWLEDGEMENT OF COUNTRY

    The Municipal Council of Roxby Downs acknowledges the Kokatha

    peoples, the traditional owners of the land on which the township of Roxby

    Downs is based and pay respect to the Elders past and present, and

    extend that respect to other Aboriginal and Torres Strait Islander people

    who are present within our community.

    Roxby Downs Council

    Principal Office

    6 Richardson Place

    Roxby Downs, South Australia 5725

    Postal: PO Box 124

    Roxby Downs, South Australia 5725

    Telephone: (08) 8671 0010

    Email: [email protected]

    Web: roxbydowns.sa.gov.au

    Page 11

  • Contents

    roxbycouncil Draft Annual Business Plan 2018/2019 1

    Page 12

  • Council’s operations and responsibilities are grouped into four key elements: Essential Services & Assets,

    Lifestyle & Sport, Governance & Community, and Corporate Services.

    The Essential Services & Assets group is responsible for the operation and maintenance of a wide range of

    infrastructure and other assets and services. These include buildings, roads and footpaths, stormwater

    infrastructure, water supply, sewerage, electricity, waste management, and parks and gardens.

    The Lifestyle & Sport group provides leisure, recreation, and cultural support and services to the

    community. Roxbylink comprises an auditorium, cinema, library, visitor information centre, café, art gallery,

    indoor stadiums, outdoor netball and tennis courts, ovals, gymnasium, squash courts, community youth

    centre and aquatic facilities including indoor and outdoor pools, and splashpad. Roxbylink provides

    important community health & wellbeing benefits whilst also generating revenue for services and projects.

    The Lifestyle & Sport group is also responsible for recreation grounds and playgrounds, community land

    sporting leases and licenses, events, tourism, arts & culture and plays a significant role in supporting local

    sporting clubs.

    This portfolio works to develop and implement governance processes, protocols, and policies that enable

    Council to meet its legislative responsibilities. Additional areas include regulatory compliance (such as dog

    and cat management and bushfire prevention), public health planning, and Work Health and Safety. Staff

    are also responsible for managing and delivering projects, events, and initiatives that support community

    life. Community development and community engagement goals foster an inclusive, participative, and

    active community. Areas covered include the library, community board and forums, community foodies, and

    youth development.

    Council’s Corporate Services group encompasses the finance, customer service, information

    communication and technology, records management and payroll teams. Each of these teams supports

    Council in its various activities.

    roxbycouncil Draft Annual Business Plan 2018/2019 2

    Roxby Council

    OrganisationalStructure

    Page 13

  • Introduction

    With Council appointing its first Chief Executive, Roy Blight, in August 2017, and the subsequent restructuring

    of its Senior Management Team, Council’s change in leadership is now complete. Under this leadership,

    Council looks ahead to the 2018/2019 year.

    I am pleased to confirm that Council is debt-free, well managed and committed to good governance. All this is

    reflected in the 2018/2019 Draft Annual Business Plan and Budget.

    Whilst austere in some areas, it provides for key projects that aim to build a better community. A number of

    new projects will be characterised by their reliance on partnership efforts. However, at the core of the budget is

    the need to invest in existing assets which include those related to essential services like power, water, and

    sewerage infrastructure, and recreational and cultural assets like Roxbylink and the Community Youth Centre.

    The investment in Council-owned assets contributes to sustainability and creates long-term value to the

    community.

    For 2018/2019, Council aims to achieve an operating surplus of $105,000. The projected income from rates is

    expected to be the same in dollar terms as for the Adopted Budget of 2017/2018. New projects and assets will

    only be invested in if they are supported by a well argued ‘business case’ which addresses whole of life costs,

    community benefit, financial viability and external funding opportunities. This is the approach to major

    expenditure that Council will take into the forthcoming year and beyond.

    Roxby Downs is, and will continue to be, a family oriented community. The town is rich with cultural and

    recreational facilities, as well as diversity of people and interests. Our projects focus on building a liveable

    community which is attractive, resilient and sustainable, and contributes to an environment where residents

    enjoy quality lifestyles and participate in community life. This is why Council’s activities extend beyond the role

    of traditional local government. Our purpose is to work with BHP and the community to make Roxby Downs

    Australia’s mining town of choice, and a place where people want to live, work, and raise their families.

    Geoff Whitbread

    Administrator

    roxbycouncil Draft Annual Business Plan 2018/2019 3

    Page 14

  • Public ConsultationPursuant to the provisions of Section 123 of the Local Government Act 1999, each Local Government

    Authority is required to develop an Annual Business Plan and a Budget for each financial year. Council

    released the Draft 2018/19 Annual Business Plan and Budget for a period of Community Consultation from

    Friday 4 May 2018 to Friday 25 May 2018.

    This document was also made available for download from Council’s website www.roxbydowns.sa.gov.au.

    Hard copies of this document were also available from the Council Office at 6 Richardson Place, Roxby

    Downs.

    Council welcomed community and stakeholder feedback on the draft version through a variety of platforms

    and opportunities:

    • Invitation to the public to attend a Community Information Session at the Community Youth Centre on

    Tuesday May 15 at 6pm, conducted by the Chief Executive.

    • Invitation to the public to participate on a Facebook Live Session with the Chief Executive and Group

    Manager Corporate Services on Tuesday 22 May – 6pm.

    • Invitation to the public to attend a public meeting held by Council on Wednesday 30 May – 6.30pm, where

    verbal submissions could be made directly to the Administrator.

    • The opportunity to write a submission and post or email to the Council.

    • Opportunity to complete an online submission form available from the Council website.

    Engaging stakeholders in the Public Consultation:

    Council made consistent efforts leading up to, and throughout the consultation period, to engage the

    community in the consultation process and encourage submissions. This included the utilisation of a number

    of channels of communication including:

    • The Roxby Council Facebook Page (and shared to other community Facebook pages)

    • Speaking on community radio – RoxFM’s ‘Council Catch-up’ (Thursdays 8.30am-9.30am) and ‘The Vibe’

    (Fridays 1pm-2pm) - endeavouring to capture both morning and afternoon audiences.

    • Speaking on FlowFM’s ‘Country Viewpoint’ program.

    • Spotlight items and notifications on the ‘My Local Services App’.

    • Slides on the Roxby Council TV display at the Roxby Council offices.

    • Posters placed at the Roxby Council and on the Community Noticeboard in the centre of the town.

    • A Council/Roxbylink display at the Roxbylink Gallery.

    • Direct email to:

    o State Government stakeholders

    o BHP Communications, Community and Partnership units.

    o The Chair of the Community Board and subsequent distribution to Chairpersons of the 14

    Roxby Community Forum groups.

    o All staff of the Roxby Council (including Roxbylink) to ensure awareness and encourage further

    distribution to the community.

    roxbycouncil Draft Annual Business Plan 2018/2019 4

    Page 15

    http://www.roxbydowns.sa.gov.au/

  • Strategic DirectionCouncil’s strategic and other long term plans outline the longer term objectives and priorities for the

    community. These plans, together with the Annual Business Plan and Budget, determine the infrastructure

    needs and services Council will provide, including the costs required to deliver those services. Council’s

    strategic objectives are being updated as part of a review of its Strategic Management Plan. The strategic

    objectives contained in this document are drawn from work with the State Government and BHP on the long

    term objectives for Roxby Downs.

    Providing Services to the CommunityAll councils in South Australia have statutory responsibilities defined under the Local Government Act (1999),

    the Development Act (1993), the SA Public Health Act (2011), Natural Resources Management Act (2004),

    Planning, Development and Infrastructure Act (2016) and several other relevant legislation. For the Municipal

    Council of Roxby Downs, the Roxby Downs (Indenture Ratification) Act (1982) is also significant.

    Services provided by Council include:

    Corporate activities such as: preparing annual budgets and determining longer-term strategic

    management plans for the area, maintaining property ownership database, revenue collection for

    municipal rates, electricity, water, sewerage, and overall governance

    Management of infrastructure including: Council buildings, roads, footpaths, ovals, parks, playgrounds,

    public open space, street lighting, stormwater drainage, use of treated waste water for irrigation, power,

    water, and sewerage, including effluent re-use

    Street cleaning, rubbish collection, and recycling

    Regulatory activities including development planning and control, building and fire safety assessment,

    and dog and cat management

    Environmental health services including health standards inspections

    Protection of natural resources

    Council also provides a variety of services which enhance the health, wellbeing and prosperity of the

    community. These include:

    Community development

    Visitor Information Centre

    Library

    Festival and event support

    Recreation development and assistance to local sporting organisations

    Youth services

    Volunteer opportunities

    Art exhibitions and cultural programs

    Healthy Community programs

    Council operates the Roxbylink lifestyle and recreation centre which provides important community benefits.

    Roxbylink comprises an auditorium, cinema, library, visitor information centre, Dunes Café, art gallery, indoor

    stadiums, gymnasium, squash courts, swimming pools, splashpad and a community youth centre.

    roxbycouncil Draft Annual Business Plan 2018/2019 5

    Page 16

  • Significant Influences and TrendsIn preparing this Draft Annual Business Plan, the following significant external influences have been

    considered.

    The South Australian State Election, held in March 2018, resulted in a change to a Liberal Government. The

    newly elected government will change the State’s policy direction which will have implications for all local

    government jurisdictions. The State Government is also a party to the Roxby Downs (Indenture Ratification)

    Act 1982 and is required, along with BHP, to meet various infrastructure requirements, and contribute to the

    municipal deficit. We look forward to developing a positive working relationship with the new government, in

    particular the Minister for Energy and Mining and Minister for Local Government.

    A Local Government Rates Capping Scheme has been proposed by the State Government. Under the

    proposed scheme, an independent regulator will determine a rate cap on a region by region basis. Whilst the

    specific details of this scheme are still in development, enough is known for Council to be reasonably confident

    that it will have no adverse implications for its intended rates model for 2018-2019. Since 2016, Council has

    worked hard to keep Council rates as low as possible. For the third consecutive year the overall rates revenue

    will remain steady in dollar terms (although rates may vary across individual properties – a reflection of how

    rates are based on individual property valuations provided by the State Government’s Valuer-General).

    BHP’s Olympic Dam mine remains the biggest single influence on the township and on Council’s operations.

    Commencing in late 2017, BHP conducted a major upgrade of the Olympic Dam mine. This resulted in a surge

    in the temporary workforce and an increase in overall town-based activity. The permanent population has

    undergone sustained growth since this upgrade project. Key indicators such as rental vacancies, school

    student numbers and utilities consumption all remain above prior year levels, and are expected to remain

    robust for 2018-2019. Throughout 2017, BHP announced a number of significant investments in the Olympic

    Dam mine.

    In October 2017, BHP rolled out its Local Buying Program (LBP) in South Australia. The program aims to

    make it easier for small, local businesses with less than 20 full time equivalent staff to supply goods and

    services to Olympic Dam via an online platform. The LBP has been well received so far, and Council will

    continue to encourage eligible businesses based in Roxby Downs to register in the program.

    The provisions of the Roxby Downs (Indenture Ratification) Act 1982 significantly affect the financial operation

    of Council. As part of these considerations, the Council’s budget is also required to be submitted to the State

    Government and BHP for approval, with both parties contributing to any shortfall in the funding of Council’s

    municipal operations.

    Costs associated with major works and projects are significantly higher than for most other councils. This is

    primarily due to the remoteness of the location, intensity of works and competing for resources (e.g.

    contractors, etc.) with the Olympic Dam operations. This ‘reality’ reflects in the budget for any expenditure

    items requiring external resources.

    roxbycouncil Draft Annual Business Plan 2018/2019 6

    Page 17

  • The South Australian Government is continuing to progress a range of reforms to South Australia’s planning

    and development system. The new Planning, Development and Infrastructure Act (2016) commenced

    operation on 1 April 2017. The Department of Planning, Training and Infrastructure (DPTI) has advised the

    Local Government Association that in accordance with the provisions contained within the Act, the State

    Government is proposing to collect a contribution from each council for the establishment and maintenance of

    the electronic Planning Portal. The amount of the contribution is based on the annual value of new

    development approved within the Council area.

    The increase in the Consumer Price Index (CPI) was 1.9% (Australia) for the year ended 31 December 2017.

    Councils, however, do sometimes face higher cost increases due to the capital intensive nature of the goods

    and services purchased, and the high level of fixed costs. Consideration is also given to the Local Government

    Price Index, which measures the increase in costs for Local Government. The Local Government Price Index

    rate was 2.9% for SA based on December 2017 quarter.

    General rates are calculated based on property valuations as determined by the Valuer-General. Property

    valuations (across the entire portfolio) are expected to increase by approximately 0.7%. It reflects the higher

    occupancy levels and economic activity evidenced through real estate sales performance.

    It should be noted however that this change in valuations across the whole portfolio does not provide any

    indication of valuation movement for any individual property. Within the portfolio of properties, some will

    increase, some will decrease, and those that change will do so by different amounts proportionately. Council

    will evaluate the property valuations provided by the Valuer-General, and the implications for the application of

    rates.

    The recent announcement that China will no longer accept imported unprocessed recyclable materials (e.g.

    soft plastics) will have flow on effects to local councils throughout Australia. At this stage, given the

    comparatively low volume of material, the additional costs to Council are likely to be low and we expect they

    will not affect the 2018/2019 budget.

    From 1 July 2018, management of dog and cat registrations will be centralised via a statewide online portal

    Dogs and Cats Online (DACO). DACO will be managed by the Dog and Cat Management Board and will

    replace stand-alone individual council systems in place for registrations.

    roxbycouncil Draft Annual Business Plan 2018/2019 7

    Page 18

  • Businesses and residents in the Roxby Downs area have had access to the NBN since May 2017. According

    to Regional Development Australia Far North, around half of the town’s 1,900 premises are either connected

    to the NBN or have orders pending for connection. While there were reports of customers having some

    issues when they initially signed up, it appears that they have been addressed. Disconnection of the existing

    landline service in Roxby Downs is scheduled for 18 January 2019.

    • Strategic review of management and staffing structure. Reallocation of staffing resources to reflect the

    changing needs of Council as it plans for the future. New appointments to reflect need for more

    sustainable operations and governance requirements.

    • Remuneration increases associated with the Municipal Council of Roxby Downs Enterprise Agreement

    (2017).

    • Evolving need of services and infrastructure to serve a growing community.

    • Requirement to maintain infrastructure assets at acceptable standards.

    • Increasing fees and charges imposed by other levels of government.

    • Strategic reviews of and ‘commercial’ approach to running Council’s business entities (e.g . Roxbylink,

    Roxby Power and Roxby Water).

    • Greater focus on sourcing available State or Federal Government grant funding, especially in relation to

    major projects.

    • The closure of local community newspaper ‘The Monitor’ in February 2018. This has already changed the

    local media and communications environment.

    • Further growth in the Far North Region as a result of Oz Minerals’ Carrapateena project, located north of

    Port Augusta.

    • Plans to reform the Roxby Downs Community Board and update its vision to better reflect the

    community’s future and needs.

    roxbycouncil Draft Annual Business Plan 2018/2019 8

    Page 19

  • Objectives and Activities for 2018-2019

    (The following is a list of intended, discretionary expenditure items. It should not be read as a complete list of expenditure

    items.)

    roxbycouncil Draft Annual Business Plan 2018/2019 9

    Item Amount

    Waste transfer station upgrade $10,000

    Waste management Facility (Opal Road) $10,000

    Road resurfacing – priority based upon field assessments Aquila Boulevard Bolami Street Melia Street Planigale Drive Santalum Way Pogona Court Tiliqua Crescent

    $251,000

    Stormwater improvements $50,000

    Community Youth Centre - repairs and maintenance, upgrade & rebranding $10,000

    Library updates – shelving and seating $20,000

    Townscape Horticulture Plan $20,000

    Additional shade sail for Splashpad $30,000

    Sewerage system upgrade $85,000

    Ovals – perimeter seating $55,000

    Community engagement project ‘Your Say’ (online engagement platform) $25,000

    Sewer pit grids replacement $24,200

    Public seating around town $10,000

    Richardson Place Rotunda – replace seating $10,000

    Female friendly multiuse changing rooms – Main Ovals (funding from grants $950K) *

    *note. This project’s final scope and timeframe is uncertain at the moment due to negotiations with potential funding contributors.

    $1,000,000

    Multi-purpose Pump Track (funding from grants $450K) $500,000

    Roxbylink Gym – conversion to 24 hour operation (security and safety requirements) $40,000

    Conversion of waste plastics to fuel oils (feasibility study) $20,000

    Youth development programs $25,000

    Hermit Street nature based playspace (in conjunction with Emu Walk project). $50,000

    Lions Park upgrade – incl Skate Bowl (funding from grants $50K) $150,000

    Richardson Place public amenities including provision for disability access and parenting facilities

    $100,000

    Town entrance signage x 3 (with partial funding from BHP $70K) $100,000

    Items carried forward from 17/18 financial year Amount

    Emu Walk (c/f from 17/18, partly funded by Govt grant $200K c/f from 16/17) $400,000

    Public Art Work / Roxby Downs 30 Year Anniversary Project (c/f $30K from 17/18) $60,000

    Off Leash Dog Park (inc. $40K c/f from 17/18) $60,000

    Transfer high voltage switches and transformers $170,000

    Page 20

  • Statement of Comprehensive Income

    The following summarises estimated operating income and operating expenses by major categories. It does

    not include capital income and/or expenditure. For comparative purposes, the draft 2018/2019 budget is

    shown against the current year (2017/2018) budget and the prior year (2016/2017) actuals.

    Previous year 2016/2017

    Audited Actual $’000

    Current year 2017/2018

    Adopted Budget $’000

    Proposed 2018/2019

    Draft Budget $’000

    OPERATING INCOME

    Rates 5,482 5,472 5,474

    Statutory charges 41 44 44

    User charges 11,002 10,796 10,662

    Grants, subsidies and contributions 418 334 166

    Investment Income 7 24 40

    Municipal Deficit Funding 871 600 600

    Other Income 233 165 179

    TOTAL INCOME 18,054 17,435 17,166 OPERATING EXPENSES

    Employee Costs 4,875 5,165 4,715

    Materials, contracts and other services 9,149 9,384 9,131

    Depreciation, Amortisation and Impairment 2,601 3,014 3,171

    Finance Costs 18 18 44

    TOTAL EXPENSES 16,643 17,581 17,061

    OPERATING SURPLUS/ (DEFICIT) 1,411 (146) 105

    Net gain (loss) on disposal or revaluation of assets (6,325) 0 0

    Physical resource received free of charge 0 0 0

    Amounts specifically for new or upgraded assets 401 0 1,760

    NET SURPLUS/(DEFICIT)

    transferred to Equity Statement

    (4,513) (146) 1,865

    Other Comprehensive Income

    Changes in Revaluation surplus

    (1,430)

    0

    0

    TOTAL COMPREHENSIVE INCOME (5,943) (146) 1,865

    roxbycouncil Draft Annual Business Plan 2018/2019 10

    Page 21

  • How Council will fund the Annual Business PlanIn delivering the services and projects outlined in this Draft Annual Business Plan, Council aims to achieve an

    operating surplus of $105,000 resulting from Total Operating Revenues of $17.166 million and Total Operating

    Expenses of $17.061 million.

    In addition to the operational budget considerations, included in the 2018/19 Draft Annual Business Plan is

    Capital Income of $1.760 million (which will partly offset the planned capital costs).

    Operating IncomeCouncil has budgeted to receive Operating Income of $17.166 million in 2018/19, which is $269,000 less than

    for the Adopted Budget of 2017/2018. This income is derived from a number of different sources including

    Rates and Charges, Statutory and User Charges, Grants, Subsidies and Contributions, Investment Income

    and Other Income.

    The following chart details the split in operating income categories for 2018/19:

    User Charges ,

    62.1%

    Grants, Subsidies,

    1.0%

    Municipal Deficit

    Funding, 3.5%

    Other Income,

    1.3%

    Rates, 31.9%

    Statutory

    Charges, 0.3%

    Projected Income Sources 2018/2019

    roxbycouncil Draft Annual Business Plan 2018/2019 11

    Page 22

  • Operating Income (continued)

    Council’s proposed revenue for 2018/2019 includes $5.474 million to be raised from the various rates sources.

    An increase of $1,309 will be collected from the statutory (and therefore non-discretionary) NRM levies

    ($112,200 in 2017/2018 to $113,509 in 2018/2019), as well as an extra $590 from domestic waste collection

    service charges ($789,410 in 2017/2018 to $790,000 in 2018/2019). The proposed income from the property-

    based General Rates (which is calculated on the capital value of each property) is intended to be consistent

    with the Adopted Budget of 2017/2018.

    The Roxby Downs (Indenture Ratification) Act 1982 requires Council to provide residents within the Roxby

    Downs township with electricity, water and sewerage services. Council has historically reviewed electricity,

    water and sewerage charges in January of each year. Council will review these charges in July of each year to

    align them with financial reporting and budgeting timeframes. At this stage, the following increases (in nominal

    terms) are foreshadowed for July 2018.

    Roxby Power Electricity 1%

    Roxby Water Water 1%

    Sewerage 1%

    The above percentages refer to the adjustment in the unit rate calculation for Electricity and Water and will be

    applied evenly across all ‘category’ tariffs. The percentage increase for electricity factors in the expected

    reduction in the solar buy-back rate. For budgeting purposes, the solar buy-back rate is assumed to be 16.3

    cents per kW/hr. For sewerage charges, the same adjustment will be applied to the ‘service’ charge only.

    The 1% above is the effective increase for the full year. This increase is expected to be below the full year CPI,

    resulting in an effective reduction in real terms.

    Council is currently reviewing its approach relating to the Power and Water billing cycle. This may result in

    amended timelines (eg. ‘issue’ and ‘pay by’ dates for quarterly bills, etc.), although no decisions have been

    made yet. Any changes will have the underlying purpose of simplifying rules and processes, and ensuring a

    more aligned system with those of the wider utilities markets. Any changes from existing policies will be made

    public prior to implementation.

    Income from Water and Power is dependent on consumption-based levies. It is a complex process to

    accurately predict, and therefore budget for, the Water and Power related income. Drivers such as population

    levels, mix of property types (e.g. ‘commercial’ and ‘residential’), climatic patterns, rainfall events and BHP

    rostering structures all impact on the overall consumption. Council has, therefore, adopted a conservative

    approach to the calculation of projected income for water and power.

    roxbycouncil Draft Annual Business Plan 2018/2019 12

    Page 23

  • Roxbylink fees are reviewed annually and take into consideration the following factors:

    Cost recovery versus community service

    Affordability and capacity to pay

    Improved health and wellbeing of residents by encouraging participation

    Operating and capital costs of Council facilities

    Consumer Price Indices

    Contractual agreement/s arrangements

    Input costs (e.g. stock etc.)

    Council’s statutory charges consist of income derived from dog and cat registration fees, development and

    building fees, regulatory fees and fines. Council is expecting to generate $44,000 in Statutory Charges in

    2018/2019, the same amount as in the Adopted Budget for 2017/18. These fees and charges are set and

    approved by the State Government through various pieces of legislation.

    Council receives funding from various sources. As with all local government authorities nationally, Council

    receives untied Federal Government funds from the Grants Commission which can be spent according to

    local priorities. There are two components to this funding. A General Component is determined by a number

    of factors including population. The Identified Road Component is determined by factors such road length,

    type, and usage. Additional Roads to Recovery Funds are also received for specific road projects. Council

    also receives an annual grant from the South Australian Public Library Services. Council continually aims to

    secure grant funding from various sources where possible.

    Other income consists of income generated from reimbursement of rebates and distributions from Council’s

    Insurance schemes and other sundry income from Council activities.

    There are no borrowings anticipated in 2018/2019.

    The Indenture provides for Council’s budget deficit to be shared equally between BHP and the State

    Government. This support has been maintained at $600,000 over recent years, with $300,000 contributed

    by each.

    Operating Income (continued)

    roxbycouncil Draft Annual Business Plan 2018/2019 13

    Page 24

  • Council’s employee costs consist of operating costs associated with salaries and wages, employer

    superannuation, annual leave and long service leave liabilities, public holiday pay, workers compensationinsurance, allowances, training, work health and safety and staff income protection insurance.

    The employee costs for 2018/19 of $4.715 million represents a decrease of 8.7% (or $450,000) on the2017/2018 Adopted Budget and takes into account the following factors:

    Increase in salary and wages rates on 1 January 2019 of 1.5% p.a. in accordance with the MunicipalCouncil of Roxby Downs Enterprise Agreement 2017

    Increment movements via reclassifications (if applicable) in accordance with the Roxby Downs EnterpriseAgreement 2017

    Assumption that in 2018/2019 that all Council staff positions will be occupied for the full year

    Expected savings to be realised from organisational restructuring following strategic reviews of key areasin 2017/2018

    Strategic approach to staff training

    The employment of specialist officers (e.g. HR, WHS and Risk, Youth Development and AssetManagement)

    Employee costs, 28%

    material contracts and other

    expenses, 53%

    depreciation, amortisation and impairment, 19%

    finance costs, 0.3%

    Projected Expenses 2018/2019

    Operating ExpenditureIn 2018/2019 Council has budgeted for operating expenditure of $17.061 million, including depreciation of

    $3.171 million. Total operating expenditure represents a decrease of 3.0% (or $520,000) from the 2017/2018

    Adopted Budget.

    roxbycouncil Draft Annual Business Plan 2018/2019 14

    Page 25

  • Contributing 53.5% of the total operating expenditure materials, contractors and other expenses is the largest

    portion of outgoings in Council’s operational expenditure budget. This area includes items such as:

    Contracts for services (e.g. waste management, horticulture, cleaning, power and water maintenance

    contracts etc.)

    Plant and building maintenance

    Administration costs such as printing, stationery, software licensing

    Purchase of power and water from BHP

    The projected figure represents a decrease of 2.7% from the 2017/2018 Adopted Budget and is expected to be

    achieved from a systematic review of costs and ongoing process improvements.

    An allowance of $3.171 million in depreciation for 2018/2019 which is an increase of 5.2% (or $157,000)

    compared to 2017/2018. This is based on a conservative estimate only and may need to be revised in line with

    asset revaluations currently underway.

    An amount of $44,000 in finance costs which include bank fees and charges and an allowance for bad debts.

    Considerations in the setting of Rates and ChargesRate revenue is an integral part of Council’s financial resource base. All councils deliver an extensive range and

    level of services to their communities, and the cost of delivering and providing these services is spread across

    the community in the form of property rates. Factors that are taken into consideration when determining the rate

    include: the current economic climate, increased legislative responsibilities, community expectations, and the

    need to manage, maintain, and improve the community’s infrastructure assets.

    As with most local government authorities, Council uses the capital valuation method as the basis for valuing

    each land holding and improvements in the council area. Valuations are determined by the Valuer-General and

    are independent and based on real estate market evidence.

    Council considers that the capital value method of valuing land provides the fairest method of distributing the

    rates across all ratepayers because:

    Property value is a relatively good indicator of market value of a property and, therefore, it is the most

    appropriate measure of relative capacity to pay of property owners.

    It corresponds with the taxation principle which states that people should contribute to community, social,and physical infrastructure in accord with their capacity to pay, as measured by property held.

    roxbycouncil Draft Annual Business Plan 2018/2019 15

    Operating Expenditure (continued)

    Page 26

  • Council will be adopting the valuations made by the Valuer-General application for the financial year

    commencing 1 July 2018. The proposed valuations have been received and are currently being evaluated

    together with rate modelling applied. If a property owner is dissatisfied with a property valuation, an objection

    may be made to the Valuer-General in writing, within 60 days of receiving notice of the valuation, explaining the

    basis of the objection.

    Council provides rate rebates according to Chapter 10, Part 1, Division 5 of the Local Government Act 1999.

    Mandatory (100%) rebates are provided for the Roxby Downs Hospital and Catholic, Lutheran and Community

    Churches. Mandatory (75%) and discretionary (25%) rebates are also provided to the Roxby Downs Area School

    and St Barbara’s Parish School. Council regularly reviews the discretionary elements of these rebates but does

    not anticipate any changes to the current levels.

    Details relating to Government Council Rate Concessions, Rebates, Capping Rebates, provisions for assisting in

    cases of hardship in the payment of rates, and Council’s rights to sell land for the non-payment of rates are

    noted on pages 20-22.

    Every resident benefits in some way from the general amenity of the council area, whether it is as the present

    time or in the future. The amenity includes the local economy, general council operations and the ability to use

    community facilities. The Local Government Act 1999 allows councils to differentiate rates based on the use of

    the land and/or the locality of the land. Differential ratings has been adopted by Council according to a property’s

    land use. This is in lieu of zoning as it provides for greater flexibility and equity according to the activity

    undertaken. The composition of Council’s rate base based on Land Use Category has remained largely thesame over the past several years, a situation that is expected to continue in 2018/19.

    Council considers it appropriate that all rateable properties make a base level contribution to the cost of

    administering Council’s activities, and to the cost of creating and maintaining the physical infrastructure that

    supports each property. Approximately a quarter of Council’s general rate revenue is calculated via the fixed

    charge portion.

    Council provides a three bin refuse kerbside collection service (Domestic Waste, Recycling and Green Waste). A

    fixed service rate is charged for residential properties for the collection, treatment, and disposal of refuse and

    recyclables collected. The charge is applied to residential properties only. The intended charge of $480 per

    residential property will be unchanged from 2017/18.

    roxbycouncil Draft Annual Business Plan 2018/2019 116

    Property Type Rate in the $ (based on capital value 2018-19*)

    Residential 0.0061000

    Commercial Shop 0.0166830

    Commercial Office 0.0174740

    Commercial Other 0.0167023

    Industry Light 0.0139260

    Industry Other 0.0142820

    Vacant 0.0120960

    Other 0.0119150

    *accurate as at 1 June 2018. Rates subject to change with any amendment by the Valuer General. No material change expected.

    Page 27

  • The Natural Resource Management (NRM) Levy is a State Government tax legislated under the Natural

    Resources Management Act 2004. Council collects the levy on behalf of the SA Arid Lands Natural Resources

    Management Board. The levy is a fixed charge and is shown as a separate charge on the rates notice.

    Council has considered the impact of rates on all businesses in the Council area. In considering the impact,

    Council will assess the following matters:

    Those elements of the Council’s Strategic Management Plan relating to business development;

    The current and forecast economic climate;

    Council’s recent development approval trends;

    The operating and capital projects and new programs for the coming year that will principally benefit

    industry and business development’, and

    Valuation changes.

    Council recognises the importance of supporting and encouraging a diverse and healthy business sector.

    Measuring PerformanceThe Council measures its achievements and financial performance through the following processes:

    Monthly review of account management reports by the Council presented to the Chief Executive

    Budget reviews in accordance with legislation

    Regular reporting to the external Audit Committee

    Production of the Annual Report with audited financial statements

    Customer request and complaint systems

    Presentation of a six monthly (1/2 yearly) report card to Council on the performance achieved in

    implementing the Annual Business Plan and Budget.

    When evaluating activities undertaken during any given financial year, the Council considers a number of

    factors, one being the future sustainability of the Council. A series of financial indicators have been developed

    by the local government sector to assist in determining whether a council is financially sustainable or moving

    to a position of financial sustainability.

    Financial indicators are used to measure the performance and current financial health (and therefore financial

    sustainability) of the Council, and also demonstrate the improving (or declining) trend in Council’s financial

    position over time. These financial indicators form part of the Model Financial Statements approved by the

    Minister for Local Government and Local Government Association of SA and are:

    roxbycouncil Draft Annual Business Plan 2018/2019 17

    Page 28

  • The desired level is between 0% and 10% on average over the long term. Council’s Budget Management

    Policy provides for a short term target between -2% and 0%. The operating surplus ratio is the operating

    surplus (deficit) expressed as a percentage of income. A positive ratio indicates the percentage of operating

    income available to help fund proposed capital expenditure. A negative ratio indicates the percentage increase

    in operating income or the approximate decrease in operating expenses required to achieve a break-even

    operating result.

    The desired level is greater than 0% but not more than 100% on average over the long term. Council’s short

    term target is between 0 and 50%. This ratio indicates the extent to which the net financial liabilities of the

    Council or its total indebtedness can by met by Council’s total operating revenue. It is a broader measure than

    net debt as it includes all of a council’s obligations, including provisions for employee entitlements and

    creditors. The ratio is calculated by expressing net financial liabilities at the end of a financial year as a

    percentage of operating income for the year. When the ratio is increasing, it indicates that a greater amount of

    a council’s operating revenues is required to service its financial obligations.

    The desired level is greater than 90% but less than 110% on average over the long term. This ratio measures

    whether Council is renewing or replacing existing physical assets (roads, footpaths, stormwater drainage,

    buildings, plant and equipment, and furniture and fittings etc.) at the same rate as these assets are wearing

    out. The ratio is calculated by measuring actual capital expenditure on renewal or replacement of assets,

    relative to the expenditure on renewal or replacement of assets as per Council’s Infrastructure and Asset

    Management Plans.

    The change in the asset sustainability ratio from 4% in 2016/17 to 96% and now 276% for 2018/19 reflects a

    shift in Council’s focus in relation to its assets. The shift from the building of new assets (e.g. splashpad) to

    investing in the maintenance of its assets (e.g. maintenance of roads, stormwater drainage) reflects in the

    relative movement of the ratio.

    2016/2017AuditedActual$’000

    2017/2018AdoptedBudget$’000

    2018/2019Draft

    Budget$’000

    Financial Indicators

    Operating Surplus Ratio 8.0% (0.8%) 0.6%

    Net Financial Liabilities Ratio (17%) (24)% (30)%

    Asset Sustainability Ratio 4% 96% 276%

    roxbycouncil Draft Annual Business Plan 2018/2019 18

    Page 29

  • Long Term Financial Plan

    The purpose of Council’s Long Term Financial Plan (LTFP) is to express, in financial terms, the activities that it

    proposes to undertake over the medium to longer term to achieve its stated objectives.

    Council’s formal LTFP has not been included within this document as it, together with the Strategic Plan, are

    currently being reviewed. This review process will continue into 2018/2019 and will include discussion/liaison

    with various stakeholders including the State Government, BHP, the Community Board, and the community

    generally during 2018/19.

    A formal LTFP would require a ten year forward view, and assumptions based on economic parameters this far

    ahead are especially challenging for Roxby Downs. Council considers that a shorter-term view is appropriate

    regarding long-term planning, as BHP, through its Olympic Dam operations, is the principal driver of general

    economic parameters in Roxby Downs. A view of three to five years is deemed by Council to be more realistic,

    whilst still having careful regard to asset management and renewal requirements.

    roxbycouncil Draft Annual Business Plan 2018/2019 19

    Page 30

  • Commentary about Council’s Rating Policy

    Annual rates can be paid in full at the first instalment in October or can be paid in four equal instalments due

    October, December, March and June. The outstanding balance can be paid in full at any time. Council will send

    out instalment notices to ratepayers advising them of their next instalment due date at least 30 days prior to the

    due date. Council also provides a range of payment options – BPAY through participating banks, credit card or

    cash/cheque.

    The Local Government Act requires that Councils impose a penalty of 2% on any payment for rates, whether

    instalment or otherwise, that is received late. The purpose of this penalty is to act as a genuine deterrent to

    ratepayers who might otherwise fail to pay their rates on time, to allow Councils to recover the administrative

    cost of following up unpaid rates, and to cover any interest cost the Council may incur because it has not

    received the rates on time. Rates remaining unpaid will be charged interest each month, set each year in

    accordance with Section 181(8)(c) of the Act. Council may at its discretion remit penalties for late payment of

    rates where ratepayers can demonstrate hardship.

    Council issues an overdue notice for payment of rates when rates are overdue i.e. unpaid by the due date.

    Should rates remain unpaid more than 21 days after the issue of the overdue notice, then the Council may

    refer the debt to a debt collection agency. The debt collection agency charges collection fees that are

    recoverable from the ratepayer.

    When the Council receives a payment in respect of overdue rates, the Council applies the money received as

    follows:

    • First – to satisfy any costs awarded in connection with court proceedings

    • Second – to satisfy any interest costs

    • Third – in payment of any fines imposed

    • Fourth – in payment of rates, in chronological order (starting with the oldest amount owing)

    Penalties do apply to outstanding rates and any ratepayer who may, or is likely to, experience difficulty with

    meeting the standard payment requirements, or is planning an extended absence at the time rates are due is

    encouraged to contact our Rates Officer on 86710010 to discuss alternative payment arrangements.

    Ratepayers experiencing hardship may seek assistance from Council. If you are concerned about the payment

    of your Council rates, please contact Council on 8671 0010 to discuss your personal circumstance and

    organise alternative payment arrangements where applicable before the due date.

    roxbycouncil Draft Annual Business Plan 2018/2019 20

    Page 31

  • Postponement of rates- hardship

    Under Section 182 of the Local Government Act 1999, you can apply to postpone your rates if payment would

    cause you hardship. You will need to meet the following criteria:

    We are satisfied that hardship is proven (such as by providing a statement of income and expenses)

    You agree to pay interest on the amount at the cash advance debenture rate, calculated monthly and

    published by the Local Government Finance Authority for 1 July each year

    The property is your principal residence and is the only property you own

    You have owned the property and used it as your principal residence for a minimum of 1 year

    You can produce your Pensioner Concession Card from Centrelink or Veterans Affairs, or you can

    demonstrate that you are a self-funded retiree with a household income of less than $25,000 a year.

    Pursuant to Section 182A of the Local Government Act 1999, if you hold a State Government Seniors Card,

    you can apply to postpone part of your council rates for the current or a future financial year. The deferred

    amount will still incur a monthly interest charge, and the accrued debt will become payable when your property

    is sold or disposed of. As a South Australian Seniors Card holder, you can only apply for postponement if:

    The property is your principal place of residence

    No other person other than your spouse or domestic partner has an interest as owner of the property.

    The Local Government Act 1999 provides that the Council must grant a rebate of Council rates in specified

    circumstances. The rebates relate to:

    Land used by a not for profit community service organisation for specified services (pursuant to Section

    161).

    Land containing a church or other building used for public worship and land used solely for religious

    purposes (pursuant to Section 162)

    Land used for specified educational purposes (pursuant to Section 165).

    Section 166 of the Local Government Act 1999 sets out the circumstances in which Council can grant

    discretionary rebates of up to 100%. Rebates are approved on an annual basis.

    Council offers a capping rebate on differential general rates granted to the Principal Ratepayer on

    assessments under Section 166 (1) (L) of the Act. The capping rebate amount is calculated from the difference

    between the amount of differential general rates raised during the current financial year, and the amount of

    differential general rates for the previous financial year, plus 5.0%. For the capping rebate to be granted, the

    following criteria must apply;

    • The land use of the property is residential

    • There has been no improvements on the land over $20,000 since the start of the previousfinancial year

    roxbycouncil Draft Annual Business Plan 2018/2019 21

    Page 32

  • • The zoning of the land has not changed since the start of the previous financial year

    • The Land Use has not changed since the start of the previous financial year

    • The capping rebate amount exceeds $10, and

    • Council receives the “Rate Capping Rebate Application Form” from the Principal Ratepayer prior to thedue date of the first instalment.

    Enquiries can be made through our Rates Officer on 8671 0010.

    Section 184 of the Local Government Act 1999 provides that a Council may sell any property where the rates

    have been in arrears for three years or more. The Council is required to notify the owner of its intention to sell

    the land if payment of the outstanding amount is not received within one month, and must provide the owner

    with details of the outstanding amounts. Except in extraordinary circumstances, the Council enforces the sale

    of land for arrears of rates.

    roxbycouncil Draft Annual Business Plan 2018/2019 22

    Page 33

  • : [email protected]

    roxbycouncil Draft Annual Business Plan 2018/2019

    Page 34

  • Roxby CouncilBudget Financial StatementsConsolidated

    2017/2018AdoptedBudget$'000

    2017/2018Review 2Budget$'000

    2018/2019Draft

    Budget

    Statement of Comprehensive IncomeIncomeRates 5,472 5,472 5,474Statutory charges 44 44 44User charges 10,804 10,796 10,662Grants subsidies and contributions 331 334 166Municipal deficit funding 600 600 600Investment income 5 24 40Other income 190 165 179Total Income 17,446 17,435 17,166

    ExpensesEmployee costs 5,029 5,165 4,715Materials contracts & other expenses 9,337 9,384 9,131Finance Costs 48 19 44Depreciation amortisation & impairment 2,620 3,014 3,171Total Expenses 17,034 17,581 17,061

    OPERATING SURPLUS / (DEFICIT) 412 (146) 105

    Asset disposal and fair value adjustments 0 0 0Physical Resources Received Free of Charge 0 0 0Amounts specifically for new or upgraded assets 0 0 1,760

    NET SURPLUS / (DEFICIT) 412 (146) 1,865transferred to Equity Statement

    Other Comprehensive IncomeTransfer Between Reserves 0 0 0TOTAL COMPREHENSIVE INCOME 412 (146) 1,865

    Page 35

  • Roxby CouncilBudget Financial StatementsConsolidated

    2017/2018AdoptedBudget$'000

    2017/2018Review 2Budget$'000

    2018/2019Draft

    Budget

    Statement of Financial PositionASSETSCurrent AssetsCash & cash equivalents 1,902 3,663 4,810Trade & other receivables 2,827 3,336 3,336Inventories 27 21 21Total Current Assets 4,756 7,020 8,167

    Non-Current AssetsInfrastructure, property, plant & equipment 128,429 119,063 119,780Total Non-Current Assets 128,429 119,063 119,780

    Total Assets 133,185 126,083 127,948

    LIABILITIESCurrent LiabilitiesTrades & other payables 1,834 1,326 1,326Provisions 330 259 259Total Current Liabilities 2,164 1,585 1,585

    Non-Current LiabilitiesTrade & Other Payables 0 0 0Long term borrowings 0 0 0Long term provisions 0 0 0Other non-current liabilities 1,230 1,230 1,230Total Non-Current Liabilities 1,230 1,230 1,230

    Total Liabilities 3,394 2,815 2,815

    NET ASSETS 129,791 123,268 125,133 0.5 - -

    EQUITYAccumulated Surplus 28,912 23,819 25,684Asset Revaluation Reserve 100,879 99,449 99,449Other Reserves 0 0 0Asset Replacement Reserve 0 0 0TOTAL EQUITY 129,791 123,268 125,133

    Page 36

  • Roxby CouncilBudget Financial StatementsConsolidated

    2017/2018AdoptedBudget$'000

    2017/2018Review 2Budget$'000

    2018/2019Draft

    Budget

    Statement of Changes in Equity - - -

    ACCUMULATED SURPLUSBalance at end of previous reporting period - AS 28,500 23,965 23,819Net result for year 412 (146) 1,865Balance at end of period 28,912 23,819 25,684

    ASSET REVALUATION RESERVEBalance at end of previous reporting period - ARR 100,879 99,449 99,449Gain on revaluation of infrastructure, property plant & equipment 0 0 0Balance at end of period 100,879 99,449 99,449TOTAL EQUITY AT END OF REPORTING PERIOD 129,791 123,268 125,133

    Page 37

  • Roxby CouncilBudget Financial StatementsConsolidated

    2017/2018AdoptedBudget$'000

    2017/2018Review 2Budget$'000

    2018/2019Draft

    Budget

    Statement of Cash Flows

    CASH FLOWS FROM OPERATING ACTIVITIESReceiptsRates - general and other 5,472 5,472 5,474Fees and other charges 44 44 44User charges receipts 10,804 10,796 10,662Grants utilised for operating purposes 331 334 166Municipal deficit funding receipts 600 600 600Investment receipts 5 24 40Other revenues receipts 190 165 179Changes in Net AssetsPaymentsEmployee costs payments (5,029) (5,165) (4,715)Materials, contracts & other payments (9,285) (9,384) (9,131)Finance payments (48) (19) (44)Net Cash provided by (or used in) Operating Activities 3,085 2,868 3,275

    CASH FLOWS FROM INVESTING ACTIVITIESReceiptsAmounts specifically for new or upgraded assets 0 0 1,760Sale of replaced assets 48 48 0PaymentsExpenditure on renewal/replacement of assets (1,264) (1,099) (2,666)Expenditure on new/upgraded assets (776) (776) (1,222)Net Cash provided (or used in) Investing Activities (1,992) (1,827) (2,128)

    CASH FLOWS FROM FINANCING ACTIVITIESReceiptsProceeds from borrowings 0 0 0PaymentsRepayments of borrowings 0 0 0Net Cash provided by (or used in ) Financing Activities

    0 0 0

    Net Increase / (Decrease) in cash 1,092 1,041 1,147

    Cash & equivalents at beginning of period 810 2,622 3,663Cash & equivalents at end of period 1,902 3,663 4,810

    Page 38

  • Roxby CouncilBudget Financial StatementsConsolidated

    2017/2018AdoptedBudget$'000

    2017/2018Review 2Budget$'000

    2018/2019Draft

    Budget

    Uniform Presentation of Finances

    Income 17,446 17,435 17,166less Expenses (17,034) (17,581) (17,061)Operating Surplus / (Deficit) 412 (146) 105

    less Net Outlays on Existing AssetsCapital Expenditure on renewal & replacement of existing assets

    1,264 1,099 2,666

    less Depreciation amortisation & impairment (2,620) (3,014) (3,171)less Proceeds from sale of replaced assets (48) (48) 0

    (1,404) (1,963) (504)

    less Net outlays on New and Upgraded AssetsCapital Expenditure on new or upgraded assets 776 776 1,222less Amounts received specifically for new & upgraded assets

    0 0 (1,760)

    less Proceeds from sale of surplus assets 0 0 0776 776 -538

    Net Lending / (Borrowing) for Financial Year 1,040 1,041 1,147

    Statutory Financial Indicators

    Operating Surplus Ratio 2.4% -0.8% 0.6%Being the operating surplus (deficit) as a percentage of revenue

    Net Financial Liabilities Ratio -8% -24% -31%Being the net financial liabilities / total operating revenue

    Asset Sustainability RatioCapital expenses on renewal / replacement assets less sale of replaced assets divided by Infrastructure Asset Management Plan planned renewal expenditure

    111% 96% 276%

    Page 39

  • Roxby CouncilBudget Financial StatementsMunicipal (consists of Municipal Operations & Roxbylink)

    2017/2018AdoptedBudget$'000

    2017/2018Review 2Budget$'000

    2018/2019Draft

    Budget

    Statement of Comprehensive IncomeIncomeRates 5,472 5,472 5,474Statutory charges 44 44 44User charges 1,718 1,710 1,556Grants subsidies and contributions 331 334 166Municipal deficit funding 600 600 600Investment income 5 24 40Reimbursements 0 0 0Other income 190 165 179Share of loss - equity accounted Council businesses 0 0 0Total Income 8,360 8,349 8,060

    ExpensesEmployee costs 4,444 4,581 4,375Materials contracts & other expenses 4,813 4,917 4,979Finance Costs 49 19 30Depreciation amortisation & impairment 1,628 1,638 1,726Share of profit - equity accounted Council businesses 0 0 0Total Expenses 10,933 11,154 11,109

    OPERATING SURPLUS / (DEFICIT) (2,573) (2,805) (3,049)Municipal Distribution 1,050 1,050 1,050Adjusted Net Surplus / (Deficit) (1,523) (1,755) (1,999)

    Asset disposal and fair value adjustments 0 0 0Physical Resources Received Free of Charge 0 0 0Amounts specifically for new or upgraded assets 0 0 1,760

    NET SURPLUS / (DEFICIT) (1,523) (1,755) (239)transferred to Equity Statement

    Other Comprehensive IncomeChanges in Revaluation surplus 0 0 0TOTAL COMPREHENSIVE INCOME (1,523) (1,755) (239)

    Page 40

  • Roxby CouncilBudget Financial StatementsPower

    2017/2018AdoptedBudget$'000

    2017/2018Review 2Budget$'000

    2018/2019Draft

    Budget

    Statement of Comprehensive IncomeIncomeRates 0 0 0Statutory charges 0 0 0User charges 4,429 4,429 4,431Grants subsidies and contributions 0 0 0Municipal deficit funding 0 0 0Investment income 0 0 0Reimbursements 0 0 0Other income 0 0 0Share of loss - equity accounted Council businesses 0 0 0Total Income 4,429 4,429 4,431

    ExpensesEmployee costs 314 314 174Materials contracts & other expenses 2,607 2,611 2,361Finance Costs 0 0 14Depreciation amortisation & impairment 622 776 815Share of profit - equity accounted Council businesses 0 0 0Total Expenses 3,543 3,701 3,364

    OPERATING SURPLUS / (DEFICIT) 886 728 1,067Municipal Distribution 0 0 0Adjusted Net Surplus / (Deficit) 886 728 1,067

    Asset disposal and fair value adjustments 0 0 0Physical Resources Received Free of Charge 0 0 0Amounts specifically for new or upgraded assets 0 0 0

    NET SURPLUS / (DEFICIT) 886 728 1,067transferred to Equity Statement

    Other Comprehensive IncomeChanges in Revaluation surplus 0 0 0TOTAL COMPREHENSIVE INCOME 886 728 1,067

    Page 41

  • Roxby CouncilBudget Financial StatementsRoxby Water

    2017/2018AdoptedBudget$'000

    2017/2018Review 2Budget$'000

    2018/2019Draft

    Budget

    Statement of Comprehensive IncomeIncomeRates 0 0 0Statutory charges 0 0 0User charges 4,657 4,657 4,675Grants subsidies and contributions 0 0 0Municipal deficit funding 0 0 0Investment income 0 0 0Reimbursements 0 0 0Other income 0 0 0Share of loss - equity accounted Council businesses 0 0 0Total Income 4,657 4,657 4,675

    ExpensesEmployee costs 271 271 167Materials contracts & other expenses 1,917 1,855 1,792Finance Costs 0 0 0Depreciation amortisation & impairment 370 600 630Share of profit - equity accounted Council businesses 0 0 0Total Expenses 2,558 2,726 2,588

    OPERATING SURPLUS / (DEFICIT) 2,099 1,931 2,087Municipal Distribution -1,050 -1,050 -1,050Adjusted Net Surplus / (Deficit) 1,049 881 1,037

    Asset disposal and fair value adjustments 0 0 0Physical Resources Received Free of Charge 0 0 0Amounts specifically for new or upgraded assets 0 0 0

    NET SURPLUS / (DEFICIT) 1,049 881 1,037transferred to Equity Statement

    Other Comprehensive IncomeChanges in Revaluation surplus 0 0 0TOTAL COMPREHENSIVE INCOME 1,049 881 1,037

    Page 42

  • MUNICIPAL COUNCIL OF ROXBY DOWNS Richardson Place

    PO Box 124 Roxby Downs SA 5725

    Phone 08 8671 0010

    Email: [email protected] Web: www.roxbydowns.sa.gov.au

    ABN: 68 284 130 046

    REPORT FOR ORDINARY COUNCIL MEETING

    Meeting Date 27 June 2018 Title of Report 2018/19 Valuation, Annual Rates Charges and Levy, and Municipal

    Rating Policy

    1. Purpose Adoption of 2018/19 annual valuations, declaration of rates, charges and levy, and adoption of Municipal Rating Policy.

    2. Recommendation That the Council:

    Adoption of Valuation Pursuant to Section 12(6)(b) of the Roxby Downs (Indenture Ratification) Act 1982 and Section 167(2)(a) of the Local Government Act 1999, the most recent valuations of the Valuer-General available to the Council of the capital value of land within the Council’s area are adopted, totalling $509,034,100.00. Fixed Charge Pursuant to section 152(1)(c) of the Local Government Act 1999 a fixed charge of $680.00 is imposed in respect of each separate piece of rateable land in the Council area. Differential General Rates Pursuant to Sections 152(1)(c), 153(1)(b) and 156(1)(a) of the Local Government Act 1999 Differential General Rates are declared in accordance with the use of the land in accordance with the differentiating factors specified at Regulation 14 of the Local Government (General) Regulations 2013 as follows:-

    Residential – a differential rate of 0.6100 cents in the dollar on the capital value of such land.

    Commercial Shop – a differential rate of 1.6683 cents in the dollar on the capital value of such land.

    Commercial Office - a differential rate of 1.7474 cents in the dollar on the capital

    value of such land.

    Commercial Other - a differential rate of 1.67023 cents in the dollar on the capital value of such land.

    Industrial Light – a differential rate of 1.3926 cents in the dollar on the capital value

    of such land.

    Industrial Other - a differential rate of 1.4282 cents in the dollar on the capital value of such land.

    Other – a differential rate of 1.1915 cents in the dollar on capital value of such land.

    Page 43

    mailto:[email protected]://www.roxbydowns.com/

  • Vacant Land – a differential rate of 1.2096 cents in the dollar on the capital value of such land.

    Service Charges Pursuant to section 155 of the Local Government Act 1999 a service charge of $458.00 is imposed upon each separate piece of rateable land to which the Council makes available a service for the collection, treatment, recycling and disposal of domestic waste (excluding organics), on the basis that the sliding scale provided for in Regulation 13 of the Local Government (General) Regulations 2013 will be applied to reduce the service charge payable, as prescribed. In accordance with section 155(3)(b) of the Local Government Act 1999 and Regulation 12(4)(a) of the Local Government (General) Regulations 2013, this service charge will only apply to land of the Residential category. In accordance with Clause 29(5) of the Schedule to the Roxby Downs (Indenture Ratification) Act 1982, this service charge is fixed having regard to the reasonable costs incurred or likely to be incurred in providing such services and to charges paid by other industrial users and country area consumers respectively in the State and includes all such allowances, discounts and subsidies as may from time to time be granted or given to such users and consumers. Separate Rate - NRM Levy Pursuant to section 95 of the Natural Resources Management Act 2004 and section 154 of the Local Government Act 1999, a separate rate (fixed charge) of $60.70 is declared on all rateable land in the Council area to raise the amount of $113,509.00 on behalf of the SA Arid Lands Natural Resources Management Board. No Minimum Rate The Council does not fix a minimum rate pursuant to Section 158(1)(a) of the Local Government Act 1999 for the 2018/2019 financial year. Rate Capping Rebate A rebate of differential general rates for the 2018/19 financial year may be granted to the Principal Ratepayer of any assessment under Section 166 (1)(l) of the Local Government Act 1999, on application to the Council, conditions apply. In general terms, the amount of rebate will be the positive difference (if any) between: (a) the amount of differential general rates imposed for the 2018/2019 financial year in respect of that assessment; and (b) the amount of differential general rates imposed for the 2017/18 financial year in respect of that assessment plus 5.0%. The precise amount of the rebate will be calculated in accordance with the Municipal Rating Policy. Applications for this rebate must be made in the form prescribed in the Municipal Rating Policy. Due Dates for Payment of Rates

    In accordance with Section 181 of the Local Government Act 1999, the 2018/19 General Rates (Fixed Charge and Differential Rate), Service Charge and Separate Rate shall be due in four (4) equal or approximately equal instalments payable on 17 September 2018, 17 December 2018, 18 March 2019 and 17 June 2019. Rateability and Approvals under Roxby Downs (Indenture Ratification) Act 1982

    It is noted that:

    Any land excluded from rating pursuant to clause 29(1) of the Schedule to the

    Roxby Downs (Indenture Ratification) Act 1982 is, in accordance with Section 147(2)(h) of the Local Government Act 1999, not rateable land.

    Page 44

  • The rates resolved herein are operative with the agreement of the Joint Venturers under clause 29(3)(a) of the Schedule to the Roxby Downs (Indenture Ratification) Act 1982.

    No rates or charges adopted herein are discriminatory to the Joint Venturers. The budget adopted herein attracts the operation of clause 29(3)(b) of the

    Schedule to the Roxby Downs (Indenture Ratification) Act 1982 with the approval of the State and the Joint Venturers.

    Municipal Rating Policy

    The revised Municipal Rating Policy, as detailed in the Attachment to the report to Council dated 27 June 2018 entitled 2018/19 Valuation, Annual Rates and Levy, Municipal Rating Policy, is adopted.

    3. Discussion Council undertakes annual rate modelling following receipt of the annual property valuations from the Valuer General. For the purpose of the 2018/19 annual rate charges, Council has planned a 0% (nominal) increase upon overall rates revenue. Council operates with a range of fixed annual costs and continues to develop and redefine its operating parameters based upon the required levels of service in conjunction with required funding. Appropriate cost scrutiny is a continuous objective. 3.1 Adoption of Valuations The Annual Valuation received for 2018/19 totalled $509,034,100.00 across the Municipality. The valuation has increased from 2017/18 by $3,829,000.00 which equates to an increase in total property valuations of 0.76%. This small increase represents a small turnaround over the previous two years which saw a significant decrease in the property valuations. The valuations represent the Valuer General’s assessment as at 3 June 2018. 3.2 Fixed Charge Council operates with a range of fixed costs and as such the proposed fixed charge for 2018/19 of $680.00 will remain unchanged from 2017/18. 3.3 Differential General Rates Council’s rates modelling for 2018/19 began by attempting to charge the same total amount (nominally) for each property as was charged for 2017/18. Because of some significant movements in property valuations (chiefly in the ‘Residential’ type but not exclusively), some substantial changes in chargeable rates were noted, including some that would have led to a rates increase significantly more than for the prior year. Council then incorporated into its model a ‘cap’ whereby any increase in rates in excess of 2017/18 plus 5% could be claimed back by any impacted ratepayer. This ‘cap’ has the potential to cost Council $56,916.00 in forgone rates revenue. Council then remodelled to recover part, but not all, of this $56,916.00. By adjusting the differential rate on ‘Residential’ property types, the potential lost rates revenue was reduced to $21,943.00 (when compared to 2017/18 modelling). The following summary shows the various differential rates for each property type:

    Residential – a differential rate of 0.6100 cents in the dollar Commercial Shop - a differential rate of 1.6683 cents in the dollar Commercial Office - a differential rate of 1.7474 cents in the dollar Commercial Other – a differential rate of 1.67023 cents in the Industrial Light - a differential rate of 1.3926 cents in the dollar Industrial Other - a differential rate of 1.42820 cents in the dollar Other – a differential rate of 1.1915 cents in the dollar Vacant Land – a

    differential rate of 1.20960 cents in the dollar

    Page 45

  • 3.4 Service Charge (Domestic Waste Collection) The service charge (Domestic Waste Collection) for 2018/9 is proposed to remain at $458.00 which is the same as for 2017/18. This charge will be applied to ‘Residential’ property types only. 3.5 Natural Resource Management Levy (NRM) Council on behalf of the SA Arid Lands Natural Resource Management Board is required to raise a total of $113,5