Administration and Finance Committee Meeting

 

  BUSINESS PAPER

 

 

 

 

 

 

 

 

 

 

 

Tuesday 20 July 2010

 

 

 

 

 

 

 

 

 

Administrative Centre 30 Frances Street Randwick 2031

Telephone: 02 9399 0999 or

1300 722 542 (for Sydney metropolitan area)

Fax:02 9319 1510

general.manager@randwick.nsw.gov.au

www.randwick.nsw.gov.au


 

 

 

 

 

 

 

 

 

 

 

 


Administration and Finance Committee

20 July 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administration and Finance Committee Meeting

 

 

Notice is hereby given that a Administration and Finance Committee Meeting of the Council of the City of Randwick will be held in the Council Chamber, Town Hall, 90 Avoca Street, Randwick, on Tuesday, 20 July 2010 at 6:00pm.

 

 

Committee Members:           The Mayor, J Procopiadis, Andrews, Belleli (Deputy Chairperson), Bowen, Hughes, Matson, Matthews, Nash, Notley-Smith, Seng, Smith (Chairperson), Stevenson, Tracey, White and Woodsmith.

 

Quorum:                           Eight (8) members.

 

NOTE:    At the Extraordinary Meeting held on 28 September 2004, the Council resolved that the Administration and Finance Committee be constituted as a committee with full delegation to determine matters on the agenda.

 

Apologies/Granting of Leave of Absences 

 

Confirmation of the Minutes  

Administration and Finance Committee Meeting - 8 June 2010

 

Declarations of Pecuniary and Non-Pecuniary Interests

 

Address of Committee by Members of the Public

 

Urgent Business

Administration Reports

A3/10       One Association for Local Government in NSW

Finance Reports

F15/10      Monthly Financial Report as at 31 May 2010

F16/10      2009 Land Valuation

F17/10      Contingency Fund - status as at 30 June 2010    

Notice of Rescission Motions

Nil 

 

…………………………………………………….

Ray Brownlee

General Manager


Administration and Finance Committee

20 July 2010

 

 

 

Administration Report No. A3/10

 

 

Subject:                  One Association for Local Government in NSW

Folder No:                   F2004/06656

Author:                   David Kelly, Manager Administrative Services     

 

Introduction

 

An invitation has been received from the Local Government & Shires Associations of NSW to attend a convention to be held on 16 & 17 August 2010 at Star City.  The purpose of the convention is to consider the recommendations of the ‘One Association Taskforce’ to progress the formation of One Association to present and provide a strong and uniform voice for all NSW Councils.

 

Issues

 

The conferences of both the Local Government Association of NSW and the Shires Association of NSW, have called for the formation of One Association, recognising that a change in how the sector is represented and perceived is required to better serve the sector in the future.

 

To assist with this process, the Associations have established a One Association Taskforce comprising representatives from each Association and an Independent Chairperson.  The taskforce has been meeting regularly to discuss and determine models for One Association and will be presenting its recommendation for One Association at a special convention to be held on 16 & 17 August 2010.

 

The taskforce has invited Mayors, Councillors and General Managers to attend – invitation attached – and have indicated that voting at the convention will be 1 vote per full member Council (with a majority vote to be represented by 66% of delegates present).

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 1:       Leadership in sustainability.

Direction 2c:      Strong partnerships between Council, community groups and government agencies in order to champion our community’s needs to other service providers and government agencies to advocate on our community’s behalf.

 

Financial impact statement

 

The cost of attending this convention has been allowed for in the 2010-11 budget.

 

Conclusion

 

This matter is of relevance to all Councils in NSW.

 

Prior to the convention, the Taskforce has indicated it will provide a discussion paper to all Councils.  The paper will include the base principles to be presented to delegates for consideration, discussion and feedback and will be distributed to all Councillors as soon as it is received.

 

Recommendation

 

That:

 

a)     Council notes the importance of forming One Association to provide a uniform voice for Local Government in NSW;

 

b)     The Mayor (as Council’s voting delegate), any interested Councillors and the General Manager attend the One Association Convention on 16 & 17 August 2010;

 

c)     Council consider this matter further when the One Association Taskforce releases its discussion paper.

 

 

Attachment/s:

 

1.View

Convention Registration brochure - One Association Local Government NSW

 

2.View

One Association Newsletter - Issue # 1 - 23 June 2010

 

 

 

 


Convention Registration brochure - One Association Local Government NSW

Attachment 1

 

 

 


 



One Association Newsletter - Issue # 1 - 23 June 2010

Attachment 2

 

 


 


Administration and Finance Committee

20 July 2010

 

 

 

Finance Report No. F15/10

 

 

Subject:                  Monthly Financial Report as at 31 May 2010

Folder No:                   F2009/00340

Author:                   Anna Bashkirova, Acting Senior Management Accountant     

 

Introduction

 

Section 202 of Local Government (General) Regulation 2005 requires that the responsible accounting officer of a council must:

a)     establish and maintain a system of budgetary control that will enable the council’s actual income and expenditure to be monitored each month and to be compared with the estimate of the council’s income and expenditure, and

b)     if any instance arises where the actual income or expenditure of the council is materially different from its estimated income or expenditure, report the instance to the next meeting of the council.

 

Issues

 

This report provides the financial results of the Council as at 31 May 2010. Attachment 1 summarises the Council’s financial performance and its source and application of funds. It also summarises the operating result for each of the Council’s principal activities. Attachment 2 details the financial position of the Council as at 31 May 2010.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 1:     Leadership in Sustainability.

Direction 1b:    Council is a leader in the delivery of social, financial and operational activities.

 

Financial impact statement

 

There is no direct financial impact for this matter.

 

Conclusion

 

The Council’s Director Governance and Financial Services, as the responsible accounting officer, advises that the projected financial position is satisfactory.

 

Recommendation

 

That the monthly financial reports as at 31 May 2010 be noted.

 

Attachment/s:

 

1.View

Income Statements, Source and Application of Funds for the period ended 31 May 2010

 

2.View

Balance Sheet as at 31 May 2010

 

 

 

 


Income Statements, Source and Application of Funds for the period ended 31 May 2010

Attachment 1

 

 






Balance Sheet as at 31 May 2010

Attachment 2

 

 


Administration and Finance Committee

20 July 2010

 

 

 

Finance Report No. F16/10

 

 

Subject:                  2009 Land Valuation

Folder No:                   F2007/00367

Author:                   Cherie Hodges, Acting Manager Financial Operations     

 

Introduction

 

Council’s rate levy is calculated on the unimproved land value of the property as determined by the NSW Department of Lands – Office of the Valuer General (VG).  New valuations are provided to councils every three to five years - the previous valuations for our area were provided in 2006.

 

In February 2010 the VG issued new land values to land owners throughout the city of Randwick.  These values were determined as at 1 July 2009 and Council will use these new valuations for rating purposes for the 2010-11 rate levy.

 

Issues

 

Our income is capped

As the Council’s rate revenue is capped by rate pegging and any approved special variation to rates income, a revaluation does not mean any additional rate income for Council.

 

Analysis of valuation changes

An analysis of the latest revaluation has been conducted to determine where the main valuation movements have occurred. The following graphs indicate the average valuation movements and the average rate increases for properties within the suburbs located within the Randwick City Council area.

 

Redistribution of rates

A revaluation does not result in any extra income for the Council, but it does result in a redistribution of rates among ratepayers as there can be considerable variation in the valuation movements of individual properties.

 

The effects of the revaluation on an individual property, depends on how the valuation for that particular property increased or decreased relative to the average increase in land value overall.  The average land value increase for Residential properties was 5.75% and the average increase in land value for Business properties was 9.16%.

 

Special Variation

The Minister for the Division of Local Government recently approved our special variation for the Buildings for our Community program and as such our total rates income for 2010-11 will increase by 5.29%.

 

Approximately half of all Residential properties in Randwick City Council are on the minimum rate. In accordance with the special variation approval, minimum rates will increase by 5.29% this year. 

 

Information for ratepayers

Ratepayers will receive the current Valuer General Newsletter with their 2010-11 Rates and Charges Notice.  This newsletter further explains the land valuation process in NSW. 


This report will be placed on the Council’s internet as information for all ratepayers.  Ratepayers are entitled to object to their valuation.  Objections are made directly to the VG.

 

Graph 1 – shows Residential increases per suburb.

 

Residential properties increased by 5.75% overall.

 

Graph 2 – shows Business increases per suburb.

 

Business properties increased by 9.16% overall. 

 

The above graph shows La Perouse and Little Bay as stand outs.  It should be noted that these inconsistent increases are due to the following:

 

1.  La Perouse – there are only 13 rateable business properties in La Perouse and   one of those properties received a valuation increase of 140%.  The owners of this particular property have already lodged an objection to the VG to reduce this land value.  A previous land value was objected to successfully and reduced by the VG for this property.  In removing this particular property from the average calculation, the average valuation increase for Business properties in La Perouse would be more like 9%.

 

2.  Little Bay – as building works at the Landcom Little Bay development site continue, Section 125 heritage valuations are removed from the valuations for these properties.  The heritage valuations are removed when works are commenced on any parcel affected by heritage.  Some heritage valuations have been removed since the last revaluation and others remain – this is why Little Bay has had an overall average increase of over 30% in Business properties and over 10% for Residential properties.

 

Table 1 – compares residential rates increases for the average land valuation per suburb.

Residential Rating Impact by Suburb

Suburb

Previous average land value

New average land value

2009-10 Residential Rates

2010-11 Residential Rates

% Increase

Minimum Rate

313,830

337,870

549.50

578.57

5.29%

Clovelly

618,604

723,242

1083.14

1238.48

14.34%

Kensington

329,951

345,421

577.73

591.50

2.38%

Kingsford

366,962

382,051

642.53

654.22

1.82%

Randwick

332,555

371,184

582.29

635.62

9.16%

Coogee

329,428

368,849

576.81

631.62

9.50%

South Coogee

896,205

952,135

1569.21

1630.44

3.90%

Maroubra

426,306

440,280

746.44

753.94

1.00%

Matraville

381,076

400,141

667.25

685.20

2.69%

Malabar

676,163

717,592

1183.93

1228.80

3.79%

Chifley

486,096

477,827

851.13

818.23

-3.87%

Phillip Bay

517,726

506,102

906.51

866.65

-4.40%

Little Bay

536,659

593,125

939.66

1015.67

8.09%

La Perouse

540,457

530,697

946.31

908.77

-3.97%

 

 

* Please note that the table above illustrates ordinary Residential rates only.  The table excludes the Environmental Levy, Domestic Waste Management and Stormwater management. 

 

As shown above the Residential minimum rate increased by 5.29% from 2009-10 to 2010-11.  5.29% is the approved special variation increase for 2010-11.

 


Graph 3 – shows the Residential rating impact by suburb.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 3:       An informed and engaged community.

Direction 3(a):   Effective communication methods and technology are used to share information and provide services.

 

Financial impact statement

 

There is no direct financial impact for this matter.

 

Conclusion

 

The valuation of land occurs independently of councils.  Councils use these valuations in determining and levying rates in accordance with relevant legislation.  A revaluation does not equate to more income for the Council but new valuations will redistribute the amount of rates that an individual ratepayer may expect to pay from one rating year to the next when new valuations are in play.

 

 

Recommendation

 

That the report be received and noted.

 

Attachment/s:

 

Nil

 

 


Administration and Finance Committee

20 July 2010

 

 

 

Finance Report No. F17/10

 

 

Subject:                  Contingency Fund - status as at 30 June 2010

Folder No:                   F2004/07396

Author:                   Julie Hartshorn, Senior Administrative Coordinator     

 

Introduction

 

The purpose of this report is to detail the progressive amount of donations, allocations, waiving of fees and other similar contributions for the 2009-10 financial year.

 

In the 2009-10 financial year there have been 30 allocations totalling $111,345.60 as listed in the table below.

 

Issues

 

Meeting

Details

Net cost to Council

Ordinary Council – 26 Sept 2006

Annual contribution  (7 years from 2006-07)

Interest foregone on interest free loan - Coogee Surf Life Saving Club renovations

 

$4,500.00

Ordinary Council –

28 April 2009

Financial assistance – Randwick Boys and Girls High Schools – 2009 Rock Eisteddfod

 

$3,000.00

Ordinary Council –

26 May 2009

Waiving of fees – South Maroubra Village Green Art Show

 

$250.00

Ordinary Council –

26 May 2009

Waiving of fees – Maroubra Fun Run and Oktoberfest

 

$4,566.80

Ordinary Council – 28 July 2009

Waiving of fees - South Maroubra Surf Life Saving Club - Surf Carnival

 

$866.50

Ordinary Council – 28 July 2009

Waiving of fees - Maroubra Swimming Club Championships – Des Renford Aquatic Centre

 

$660.00

Ordinary Council – 28 July 2009

Financial assistance - Ride for Life – Prince of Wales Hospital Foundation

 

$3,000.00

Ordinary Council – 22 September 2009

Financial assistance – annual Pere Receveur Historic Mass

 

$2,678.50

Ordinary Council – 22 September 2009

Waiving of fees – 2nd Yarra Bay Fun Run at Bicentennial Park

 

$1,445.00

Extraordinary Council – 6 Oct 2009

Annual contribution (3 years from 2009-10)

Sponsorship - Westpac Life Saver Rescue Helicopter Service

 

$15,000.00

Ordinary Council –

20 October 2009

Financial Assistance – 2010 Australia Day Botany Bay Regatta

 

$750.00

Ordinary Council - 24 Nov 2009

Annual contribution (5 years 2010-2015)

Waiving of fees – Rainbow Club Australia – Ocean Swim (Maroubra to Little Bay)

 

$5,757.00

Ordinary Council - 24 Nov 2009

South Sydney Football Club ‘Rabbitohs Club 17 Partner’ – to assist youth in the Lexington Place area

 

$11,000.00

Ordinary Council - 24 Nov 2009

Waiving of fees – Greek Orthodox Church - Epiphany

 

$5,770.00

Ordinary Council - 24 Nov 2009

Waiving of fees – ‘Sense of Community’ street parties

 

$4,500.00

Ordinary Council –

8 Dec 2009

Financial assistance – Cancer Council ‘Eastern Suburbs Relay For Life’

 

$1,000.00

Ordinary Council –

8 Dec 2009

Waiving of fees – Clovelly Beach Open Air Cinema

$3,760.00

Ordinary Council –

8 Dec 2009

Sponsorship – Bravehearts Organisation – ‘Stay Safe Personal Safety Program’

 

$10,000.00

Extraordinary Council - 9 Feb 2010

Financial Contribution - Greek Glendi - support to the orphans of Haiti

 

$3,000.00

Ordinary Council – 23 Feb 2010

Waiving of fees – Tamarama to Clovelly Ocean Swim

 

$375.80

Ordinary Council – 23 Feb 2010

Waiving of fees – Maroubra Surfers’ Association

 

$4,195.00

Ordinary Council – 23 March 2010

Donation of Quad Bike to Surf Life Saving Sydney Inc

 

$3,000.00

Ordinary Council – 23 March 2010

Financial Assistance - Sydney Children’s Hospital - Gold Week 2010

 

$6,965.00

Ordinary Council – 27 April 2010

Waiving of fees – Hire of community bus for the Castellorizian Ladies’ Auxiliary

 

$306.00

Ordinary Council – 27 April 2010

Donation - The Leukaemia Foundation of Australia

 

$500.00

Ordinary Council – 27 April 2010

Donation (of Large Print Books) - Prince of Wales Hospital

 

$500.00

Ordinary Council –

27 April 2010

Banner - Opposition to redevelopment of Coogee Bay Hotel site being declared part 3A application

 

$1,400.00

Ordinary Council – 25 May 2010

Waiving of fees – Rainbow Club Australia Inc – Malabar Beach Ocean Swim

 

$10,820.00

Ordinary Council – 25 May 2010

Waiving of fees - Yvette Walters Fundraising Event – Randwick Town Hall

 

$780.00

Ordinary Council – 25 May 2010

Sponsorship – Inaugural Tourism Awards for Greater Sydney

 

$1,000.00

TOTAL:

 

$111,345.60

 

The amounts shown in the table above reflect the net cost to Council in providing the donation, grant or assistance.  The GST, where applicable, has not been shown because it will be claimed back from the Australian Taxation Office.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 2:           A vibrant and diverse community.

Our community will be proud to be part of our City and celebrate its range of cultures and people.

Direction 2b:         Enrich our range of community services that meet our community’s needs.

Key Actions:         Support the provision of services and facilities to meet the needs of our Target Groups and celebrate the range of cultures and people within Randwick City.

 

Financial impact statement

 

Council has allocated $100,000 in the 2009-10 Budget for contingencies. 

 

 

Recommendation

 

That the report be received and noted.

 

Attachment/s:

 

Nil