Town of Bassendean: Agenda
back to the list of Agendas and Minutes >>>
TOWN OF BASSENDEAN
NOTICE OF A SPECIAL COUNCIL MEETING
Dear Council Member
A Special Meeting of the Council of the Town of Bassendean to adopt the 2009/20010 Budget will be held in the Council Chamber, 48 Old Perth Road, Bassendean, on Tuesday, 30 June 2009, commencing at 6.00pm.
Mr Bob Jarvis
CHIEF EXECUTIVE OFFICER
26 June 2009
A G E N D A
1.0 ATTENDANCES & APOLOGIES
2.0 PUBLIC QUESTION TIME – PART ONE
Members of the public who wish to do so may ask questions at this point in the agenda. A further opportunity is also provided later in the meeting.
3.0 DECLARATIONS OF INTEREST
If a Councillor believes that he/she may have an interest in any of the Budget items, they should declare an interest and the item will be voted on separately.
5.0 CONSIDERATION OF THE 2009/20010 BUDGET
5.1 Adoption of the 2009/2010 Budget (Ref FINM/BUGTG/1 - Mike Costarella, Director Corporate Services)
APPLICATION
To seek Council’s adoption the 2009/10 Budget as presented and amended following the two budget workshops held on the 5 May and 2 June 2009.
BACKGROUND
Staff prepared and presented the two components of the draft budget ,namely Capital works and operational income and expenditure.
Council held two workshop to discuss the draft budget.
Capital Works Budget Workshop 5 May 2009
Prior to the budget workshop, Councillors were provided with a list of projects for each Councillor to assess and prioritise, based on:
- Essential
- Highly Desirable
- Desirable
At the budget workshop held on the 5 May 2009, Councillors were presented with a list of projects for consideration totalling $5,441,514 (excluding grants and other funding sources). Each Councillor prioritised each project based on the following:
- 1 - Essential $4,610,032
- 2 - Highly Desirable $826,982
- 3 - Desirable $4,500
In the compilation of the first draft Budget, staff included all priority 1 Capital Works Projects and included a reduction in the capital costs totalling $259,800. These projects that were adjusted included:
Project |
Amount Reduced |
Universal Access |
$15,000 |
Bassendean Oval - Heritage Improvements * |
$138,300 |
Administration Office - Air-conditioning Upgrade |
$21,500 |
Plant Replacement Program - Major Plant Replacement |
$50,000 |
Plant Replacement Program - Minor Plant & Equipment |
$10,000 |
Asset Management System |
$25,000 |
TOTAL |
$259,800 |
Note: * It is envisaged that this project will be included as an infrastructure cost as part of the redevelopment of Bassendean Oval.
Therefore, the total amount of capital works included in the draft Budget total $4,350,232. A detail of the individual projects are included on page 26-28 of the draft Budget document.
Grant and funding sources for the Priority 1 projects total $2,866,502 and this consist of:
|
Therefore the funding required from rates for the 2009/10 Capital Works Program is $1,483,730.
Draft Budget Workshop 2 June 2009
At the workshop, Councillors were presented with a draft Budget that provided for a closing surplus as at the 30 June 2010 of $27,049. Following the meeting, staff found an addition error of $1,075 in the Health and Environmental Services. This reduced the surplus to $25,974.
At the workshop, Councillors requested that the following items be included in the draft Budget:
- Benches at Ashfield Pde $6,000
- Contributions- Native Animal Rescue $2,500
This provided for a closing surplus as at the 30 June 2010 of $17,474.
CPI Index
The Director Corporate Services provided information from the Australian Bureau of Statistics that indicate that the Annual CPI for March 2009 (Perth All groups) is 2.2%. The WALGA costing index for the same period shows an increase in costs of 2.4%. Staff anticipate that the June 2009 quarter will be higher than March 2009.
This may be used as a guide to increase the rates income for the 2009/10 financial year. However, given the inclusion on a new collective agreement for staff as well as the new Landfill Levy $92,000 (or 1.2% of rates income) and additional utility charges, it is suggested that the CPI does not provide sufficient scope to provide funding in the 2009/10 financial year.
Given the above factors, staff have prepared the budget utilising a 4.8% increase in the rateable income.
In order to achieve a 4.8% increase in the rateable income, staff have increase the rate in a dollar from 8.563 cents to 8.974 cents.
Director Corporate Services’ Report
The budget document has been formulated in accordance with requirements of the Financial Management Regulations and the Local Government Act. This incorporates:
- Statutory Financial Statements – incorporating the Rates Setting Statement, Cash-flow; and notes associated with the Statements as well as Income and Expenditure Statements by Nature and Type on a Business unit level.
- Operating Income and Expenditure for:
- 2009/10 Budget
- 2008/09 Forecast
- 2008/09 Adopted Budget
- Capital and Non-Recurrent Budget - includes all Capital Expenditure and showing separately the priorities given by Council;
- 2009/10 Works and Services;
- Profit and Loss on the Sale of Assets; and
- Fees & Charges for 2009/10 (including 2008/09).
Adoption of Minimum Rate
The Minimum Rate required to be set will be determined by Council’s decision on items to be included in the budget.
Rate models will be available at the meeting, the minimum rate included in the draft Budget is $766.00.
Adoption of General Rate
The rate required to be set will be determined by Council’s decision on items to be included in the budget. Rate models will be available at the meeting, rate included in the draft budget is 8.974 cents in the dollar.
Adoption of Fees and Charges
The Local Government Act 1995 requires that all fees and charges be included in the budget document.
The Schedule of Fees and Charges is attached and requires that Council adopt the fees and charges for the 2009/10 financial year.
Rate Administration Fee and Interest Charge for Instalment Option
Council needs to include a Rate Administration Fee of $24 and an Interest Charge for Instalments of 5.5% in 2009/10. Interest charged may be up to a maximum of 5.5%. The interest charge is regulated by the Local Government (Financial Management) Regulations 1996.
The principal reason for the introduction of an administration fee and interest charge on the outstanding balance of rates, is to ensure Council either has use of the money for investment or an interest charge is paid by the ratepayer.
Ratepayers who do not elect to pay their rates by instalments, can use the “special payment arrangement” and a fee of $35. will apply.
The fee covers Officer time and external costs for preparing and sending out instalment notices and the additional receipting and checking involved.
Transfer to/From Reserves and Restricted Cash
The 2009/10 Draft budget contains funds being transferred to/from Reserve Funds and these are listed on Page 17 of the document.
Rate Instalment Dates
The Local Government Act 1995 requires local government to offer ratepayers the option of paying rates by 4 instalments, and each instalment subsequent to the first is due no sooner than two months from the due date for payment of rates.
The dates contained in the recommendation below are recommended as the due dates for the payment of rates by instalments:
Setting of Interest Rate for Late Payment of Rates
The Local Government Act (1995) allows councils to set a late payment interest penalty for rates. The Local Government (Financial Management) Regulations 1996 allows a maximum late payment interest rate of 11%.
The amount of interest charged on overdue rates is an incentive to ratepayers to pay their accounts promptly. Council is required to formally adopt the rate at the time of adopting the budget.
Discounts, Incentives, Concessions & Write-offs – 2008/09 Financial Year
Council has offered a rate incentive scheme which offers prizes for payment of rates within the 35 days from the date of issue of the Rates Notice. Council will be offering Ten (10) Cash Prizes of $500 in addition to prizes offered by sponsors at no cost to Council.
All ratepayers who pay rates on or before the due date are automatically entered into the draw unless Council is notified that any person does not wish to participate. The draw is conducted by random computer selection of eligible ratepayers as soon as possible after the due date. All winners are notified in writing by Council.
Council will also be providing a rates concession on the Hyde Retirement Village which equates to 50% of the rates levied .
Consideration and Adoption of the 2009/10 Budget
The draft Budget estimates of Income and Expenditure was presented to Budget Workshops and following the inclusion of the additional projects, Council is now requested to adopt the Budgets as presented.
As discussed at the budget workshop held on the 2 June 2009. the budget includes a 4.8% increase in rates income and provides for a closing surplus at the 30 June 2010 of $17,474.
OFFICER RECOMMENDATION – ITEM 10.2.1
That:
1. The Director Corporate Services’ Budget Report for 2009/20010 be received;
2. Council sets a General Minimum Rate of $766.00 for the year ending 30 June 2010;
3. Council sets a General Rate of 8.974 cents in the dollar upon the Gross Rental Valuation of each rateable property in the district for the period 1 July 2009 to 30 June 2010;
4. A Communication Allowance of $ 2,800 per annum for 2009/10 be paid in quarterly amounts to Councillors with their meeting fees;
5. Councillors’ meeting fees of $ 7,000 for 2009/10 be paid quarterly;
6. the Mayor’s meeting fee of $ 14,000 for 2009/10 be paid quarterly;
7. A Local Government Allowance of:
a) $15,000 for 2009/2010 be paid to the Mayor; and
b) $3,750 for 2009/2010 be paid to the Deputy Mayor;
8. Council adopts the Fees and Charges included in the attachment to the 2009/10 Draft Budget for the 2009/10 financial year;
9. Council approves:
a) An administration fee of $24 for ratepayers who elect to use the instalment payment option for their rates in the 2009/2010 rating year; and
b) An administration fee of $35 be applied for those ratepayers who elect to use the “special payment arrangement” for payment of rates;
10. An interest charge of 5.5% on the balance of rate instalment monies for ratepayers who elect to use the instalment payment option for their rates in the 2009/20010 rating year;
11. The transfers to and from Reserves contained in the 2009/10 Budget, be adopted by Council;
12. Council sets the following dates as the due dates for payment of rates by instalments:
21 August 2009
21 October 2009
17 December 2009
18 February 2010
13. A late payment interest rate be set in 2009/2010 in accordance with the provision of Section 6.51(1) of the Local Government Act (1995) and the Local Government (Financial Management) Regulations No 70, at 11%;
14. Council adopts the Rates Concession and Prizes for the 2009/10 financial year Budget; and
15. Council adopts the 2009/10 Budget for the year ending 30 June 2010, as attached to the Special Council Agenda of 30 June 2009.
Voting requirements: Points 1 – Simple Majority
Points 2 to 15 - Absolute Majority
6.0 PUBLIC QUESTION TIME & RIGHT OF REPLY
Members of the public who did not ask questions in Part One of Public Question Time will be heard first.
7.0 CLOSURE
