27 April 2017
re : Special Meeting of Council Monday 8 May 2017
Pursuant to the provisions of Section 84(1) of the Local Government Act 1989, a Special Meeting of Council has been called to be held on Monday 8 May 2017 at 7.30pm in the Council Chamber, Municipal Offices, Braeside Avenue, Ringwood, and your presence is requested.
The purpose of the meeting is for Council is to submit the draft Council Plan 2017-2021 and Proposed Budget 2017/2018 to Council for “Approval in Principle” and resolve to place both on public exhibition.
CHIEF EXECUTIVE OFFICER
Attached is the copy of the call of the meeting received from the Mayor, Cr Tony Dib JP.
Switch Hearing Aid to ‘T’ for Reception
Braeside Avenue, Ringwood, 3134
PO Box 156, Ringwood 3134
DX 38068, Ringwood
1300 88 22 33
Translating and Interpreting Service (TIS): 131 450
National Relay Service (NRS): 133 677
(03) 9298 4345
Croydon: Civic Square
Realm: Maroondah Highway Ringwood
26 April 2017
Chief Executive Officer
Maroondah City Council
re : Special Meeting of Council Monday 8 May 2017
In accordance with Section 84(1) of the Local Government Act 1989, I hereby call a Special Meeting of Council to be held on Monday 8 May 2017 at 7.30pm in the Council Chamber, Municipal Offices, Braeside Avenue, Ringwood.
The purpose of the meeting is to submit the draft Council Plan 2017-2021 and Proposed Budget 2017/2018 to Council for “Approval in Principle” and resolve to place both on public exhibition.
Cr Tony Dib JP
2. Acknowledgment of Country
4. Conflict of Interest
5. Officers’ Reports
Director Corporate Services
1. Draft Council Plan 2017-2021 and Proposed Budget 2017/18 5
DIRECTOR Corporate Services – Marianne Di Giallonardo
DRAFT COUNCIL PLAN 2017-2021 AND PROPOSED BUDGET 2017/18
To provide Council with information regarding the draft Maroondah Council Plan 2017-2021 and proposed Budget 2017/18; and to seek Council endorsement for the public exhibition in accordance with Council’s Community Engagement Policy 2015 and the Right to Make Submission (S.223) under the Local Government Act 1989 (“the Act”). This commences the legislative procedure for the formal adoption by Council.
This procedure incorporates the period of public inspection and invitation to the community to make submissions in accordance with the provisions of the Act.
Strategic / policy issues
The following directions contained in Maroondah 2040: Our Future Together and the Council Plan 2013-2017 (Year 4: 2016-2017) provide the strategic framework that underpins the purpose of this report.
Outcome Area: A well governed and empowered community
Our Vision: In 2040, Maroondah will be an empowered community that is actively engaged in Council decision making through processes that consider the needs and aspirations of all ages and population groups. Council will provide strong and responsive leadership, ensuring transparency, while working with the community to advocate for and ‘champion’ local needs.
8.1 Provide enhanced governance that is transparent, accessible, inclusive and accountable.
8.2 Ensure responsible and sustainable management of Maroondah’s resources, assets, infrastructure and natural environment.
8.3 Provide community inspired leadership in democratic governance.
Priority Action 2016-2017:
DRAFT COUNCIL PLAN
The Council Plan together with Maroondah 2040: Our future together, the Annual Budget and Annual Report, are Council’s high level strategic documents which draw together the community aspirations, preferred outcomes and key directions for the future. These high level strategic documents and associated processes form an integral part of the Maroondah City Council’s Integrated Planning Framework (shown below).
Figure 1: Council’s Integrated Planning Framework
The draft Council Plan 2017-2021 has been prepared in accordance with requirements of the Local Government Act 1989. The Act requires the Council Plan 2017-2021 to include the strategic objectives of the Council (community outcome areas), strategies for achieving the objectives for at least the next four years (key directions), strategic indicators for monitoring the achievement of these objectives (Council Plan indicators) and a Strategic Resource Plan describing financial and non-financial resources.
The draft Council Plan 2017-2021 reflects the preferred future outcomes and key directions as identified by the community in the development of Maroondah 2040: Our future together.
The draft Council Plan has been prepared in response to stakeholder input received at two Council Plan stakeholder workshops held in February 2017. Community engagement inputs from a range of other Council strategic projects have also informed the draft Council Plan. These strategic projects include:
· Maroondah Health and Wellbeing Plan (still underway)
· Youth Strategy 2017-2021 (still underway)
· Maroondah Housing Strategy (completed in 2016)
· Sustainability Strategy 2016-2020 (completed in 2016)
· Open Space Strategy (completed in 2016)
· Active and Healthy Ageing Initiative (completed in 2015)
· Water Sensitive Cities Strategy (completed in 2015)
· Children’s Plan (completed in 2015)
· Arts and Cultural Development Strategy (completed in 2014)
· Maroondah 2040: Our future together (completed in 2014)
The Council Plan identifies a range of proposed ‘Priority Actions’ for the next four years – 2017/18 to 2020/21. These proposed priority actions have been aligned with the outcome areas identified in Maroondah 2040: Our future together.
Reporting against the Council Plan and Annual Budget is undertaken quarterly to Council and the Audit and Risk Advisory Committee. Reporting on annual achievements is undertaken through the Annual Report and the ‘Our Achievements’ document.
At Maroondah, the Council Plan is refreshed annually to ensure identified priority actions meet emerging community needs and aspirations, and provide an updated strategic resource plan.
PROPOSED ANNUAL BUDGET
The proposed Budget for 2017/18 is one of Council’s high level strategic documents. The community’s aspirations for Maroondah’s future direction and development are set out in Maroondah 2040: Our future together and this forms the foundation from which Council shapes its medium term plans for the municipality. The 2017/18 Proposed Budget then addresses the provision of financial resources for the next 12 months as well as articulating how those resources are to be spent in delivering services to the community.
It is a critical planning and resource tool of Council and is vital to the ongoing operational and financial viability of Council. It sets out the expected income and expenditure for the coming year and also incorporates Council’s rating strategy as well as estimating the net worth of the municipality at the end of the year. It is the culmination of Councillor Briefings (including discussions at the Councillor Conference) and detailed preparation by employees.
Issue / discussion
DRAFT COUNCIL PLAN
To respond to the long-term objectives (outcome areas) and medium-term strategies (key directions) outlined in the Council Plan, a range of priority actions are identified for the forthcoming 2017/18 to 2020/21 period.
The following are the proposed Council Plan priority actions for Council in the forthcoming 2017/18 financial year:
· Commence construction of the $4.0m Jubilee Sporting Pavilion redevelopment (**Subject to external funding)
· Commence construction of the $2.0m HE Parker Sporting Pavilion redevelopment
· Develop a Gender Equity Policy/Statement
· Finalise a new Gaming Policy and commence preparation of a planning scheme amendment to incorporate the policy into the Maroondah Planning scheme
· Complete the design works, undertake operational readiness planning and construct the $13.5m HE Parker Multi Sports Complex
· Undertake works to implement CCTV in Croydon Town Centre, including detailed design and documentation, along with the supply and installation of cameras
· Prepare and commence implementation of a new Maroondah Health and Wellbeing Plan 2017-2021
· Participate in the South East Melbourne Council’s Alliance (SEMCA) Alcohol Density Project to strengthen decision making capabilities of Councils regarding packaged liquor outlets
· Commence construction of the $2.5m Silcock Sporting Pavilion redevelopment
· Commence sportsfield reconstruction works at Jubilee Park in Ringwood
· Undertake pedestrian and vehicle access improvement works at Heathmont Shopping Precinct - Canterbury Road, Heathmont
· Commence Regional Service Partnerships at Realm
· Work in partnership to finalise development of the Ringwood Metropolitan Activity Centre Masterplan
· Work in partnership to implement the Bayswater / Bayswater North Industrial Precinct Strategy
· Work in partnership to facilitate appropriate development within the Ringwood Metropolitan Activity Centre and Croydon Activity Centre
· Develop the Croydon Town Centre, including community engagement, completion of detailed design and construction works.
· Implement innovative and engaging arts events and outcomes in Ringwood Town Square arts precinct
· Commence implementation of the Eastern Organics Contract
· Develop a Climate Change and Risk Mitigation Strategy
· Undertake preliminary works to rehabilitate the waterway and infrastructure at Yanggai Barring in Warranwood
· Undertake a major upgrade of the playground at Ringwood Lake Park
· Finalise the Maroondah Vegetation Review
· Advocate for grade separation of the Lilydale railway line at Coolstore Road in Croydon
· Commence Hughes Park carpark improvement works
· Work in partnership to implement intersection improvement works at the corner of Maroondah Highway and Dorset Road in Croydon North
· Accelerate Council's footpath construction program
· Advocate to the Commonwealth and Victorian Government for provision of new and upgraded major transportation infrastructure in Maroondah; including freeway connections, upgrade to arterial roads and intersections, and major public transport enhancements
· Continue the upgrade of drainage including flood mitigation works in Acacia Court catchment in Ringwood and the Scenic Avenue catchment in Ringwood East
· Continue the construction of Lincoln Road, east of Dorset Road
· Undertake a municipal wide review of Council’s neighbourhood character and heritage controls
· Develop a Council policy position on affordable and social housing
· Monitor the federal National Disability Insurance Scheme and My Aged Care reform agenda and implement transitional arrangements for relevant areas of Council service delivery
· Develop a Female Participation Strategy for physical activity
· Investigate and implement additional female changing facilities at local sporting venues
· Progress Council’s innovative digital services transformation
The draft Council Plan 2017-2021 is aligned with Maroondah 2040: Our future together that was adopted by Council in June 2014. This alignment ensures that the Council Plan continues to form part of an integrated approach to planning that is informed by community aspirations for Maroondah’s future.
The draft Council Plan has been informed by stakeholder input received at two Council Plan stakeholder workshops held in February 2017, along with community engagement inputs from a range of other Council strategic projects.
There is further opportunity for revisions to be proposed by community members during the public exhibition period, which will run for the statutory period of 28 days, in this instance, 15 May to 9 June 2017.
It is intended that a final report be submitted to Council following this consultation period prior to submission of the final Council Plan 2017-2021 to the Minister for Local Government by 30 June 2017.
PROPOSED ANNUAL BUDGET
The Proposed Budget document as presented and to be placed on exhibition contains:
· High level schedules
· Comments on significant aspects of budget input and outcomes
· Linkages to the Council Plan
· Listing of Council Services and Service Performance Indicators
· Capital Works Information
· Budgetary process information and Statutory Disclosures
Its contents are consistent with the Strategic Resource Plan component of the proposed Council Plan 2017-2021 and demonstrates the provision of adequate resources to achieve the Plan’s objectives and activities for the next 12 months. Overall it is a balanced, sustainable, and responsible way forward to ensure Maroondah continues to be a vibrant city with an active community, strong local economy and a diverse cultural life in a prosperous and sustainable environment. It provides for the capacity to deal with the challenges of the future and includes 15 major initiatives (priority actions) and 20 initiatives which were identified in the Council Plan.
In 2015 the Local Government (Fair Go Rates) Act was passed in Parliament. The Act introduced a rate cap based on CPI plus or minus any adjustment and allows for multiple caps to be set by the Minister and variations to the cap should Council obtain approval to raise rate revenue by a greater amount than that imposed by the cap. The Minister has determined that the rate cap for 2017/18 is set at an increase of 2.0% over the average property rate of a Council. The average property rate is derived by dividing the total rate revenue adjusted for the annualisation of supplementary rate income by the number of rateable properties as at 30 June. In essence, the increase under the rate cap applies to rate revenue after growth in the previous year has been taken into account.
The key aspects of the revised LTFS include:
· Rate revenue increases within the rate cap framework with no variation request required;
· Services and service levels maintained;
· Asset renewal expenditure to be at least at the level of depreciation each year;
· No new borrowings;
· Provision of a cash backed defined benefits superannuation fund reserve of $5 million;
· Provision of a growing cash backed major capital projects reserve to fund as yet unidentified and new major project(s);
The adjusted underlying budget surplus, which is a measure of financial sustainability, shows an underlying surplus being achieved annually over the ten-year period of the strategy. The Budget for 2017/18 proposes an underlying surplus of $4.656 million and Council’s cash and cash equivalents (including Financial Assets) projected to be $34.012 million at June 2018.
Council is required to conduct a two yearly General Property Valuation. The most recent General Valuation was carried out with levels of value set as at 1 January 2016. The General Valuation was undertaken in accordance with best practice standards set by the State Valuer-General. These valuations are used for rating purposes to equitably spread the total of Council’s own source revenue across Maroondah’s total assessment base. Hence, the higher the property value the higher the associated individual property general rates; the lower the property value, the lower the associated individual property general rates.
The 2017/18 rating strategy is based upon the Capital Improved Value basis, the use of a differential rate for vacant land and the continuation of assistance to ratepayers who qualify under Council’s financial hardship provisions. It is proposed to raise $72.520 million in general rates which has been derived within the rate cap framework legislated by the State Government.
The next General Valuation will be conducted in 2018 and will be carried out with levels set as at 1 January 2018.
Further, Council’s established policy regarding garbage services is for all waste and recycling costs to be fully recovered through the application of a Garbage Charge in accordance with Council’s contractual arrangements. In accordance with this policy, garbage charges will increase in 2017/18 to $255.50 for a 120-litre bin, and $213.00 for an 80-litre bin. Should members of the community wish to reduce their service from a 120-litre bin to an 80-litre bin, they are encouraged to contact Council. Similarly, should residents wish to increase their recycling capacity they are able to secure a second bin at no extra cost. Again, residents are encouraged to contact Council on 1300 88 22 33.
In addition to the rating strategy, the Proposed Budget also includes strategy documents on borrowings and infrastructure and other assets. These documents confirm that borrowings of $24.2m were drawn down in 2014/15 to partly fund the new regional aquatic and leisure centre - Aquanation at Ringwood with repayment of principal and interest over 15 years and that Council’s 10-year capital works program reflects the Total Life Cycle Asset Management framework which provides the basis for the capital renewal and upgrade component associated with infrastructure assets.
The Budget provides for a Capital Expenditure program
totalling $27.254m. The program is funded externally via grants and
contributions to the extent of $3.201m and the balance
The net result for the 2017/18 year is planned at a $6.590m surplus which is an increase from the 2016/17 Budget. It is anticipated that net surpluses will continue for the life of the Long Term Financial Strategy.
The planned financial position as at 30 June 2018 reveals Council will continue to be financially sound with projected net assets of $1.467b, a working capital ratio of 1.66:1, adequate cash and investments to meet its cyclical cash flow requirements, and borrowings in line with agreed loan repayment schedules. It is submitted that the Budget paints a picture of prudent financial management that will underpin and facilitate the application and attainment of the future outcomes, key directions and priority actions detailed in the Council Plan and beyond. Hence the 2017/2018 Budget has ensured financial sustainability across Council’s entire areas of operations and responsibility and in accordance with its long term financial strategy, has kept its own source revenue levels realistic.
COUNCILLOR AND MAYORAL ALLOWANCES
It is proposed that Mayoral and Councillor allowances be paid at the levels determined by the Minister for Local Government in accordance with section 73B Local Government Act 1989 – as at 1 July 2017 Councillors $27,079 and Mayor $83,790; incorporate an amount for a sum equivalent to the Superannuation Guarantee Contribution currently 9.5% as per advice by Local Government Victoria within Circular 42/2016 and increase both the Councillor and Mayoral allowances for the remainder of the Council terms – and up until the next Council review in the year 2020 - in accordance with section 74 Local Government Act 1989, by the levels determined within the annual review of allowances carried out by the Minister for Local Government.
Financial / economic issues
The resources required to implement the draft Council Plan priority actions are contained within the current annual budget and strategic resource plan, except where identified that an action is ‘subject to funding’.
Environmental / amenity issues
These are contained within the Council Plan and Budget and articulate the Council’s current directions.
Social / community issues
These are contained with the Council Plan and Proposed Budget and articulate Council’s current directions.
To inform development of the draft Council Plan 2017-2021, two stakeholder workshops were held at Karralyka in February 2017 involving a range of key community, business, education and government leaders in Maroondah. A total of 47 people attended the first workshop and 24 attended the second workshop. These workshops were facilitated by Lisa Smith from Minds at Work, with representatives from Council’s Integrated Planning, Communications and Marketing and Corporate Management Team leading table discussions. A range of Maroondah City Councillors were also involved in these workshops to hear the perspectives of community members.
During these workshops, participants were encouraged to have facilitated table discussions that considered:
· What are the key issues facing Maroondah in the future?
· What can Council do to help resolve these issues?
· What are the key priorities that Council should focus on?
Community engagement inputs from a range of other recent Council strategic projects have also informed the draft Council Plan.
To seek feedback on the draft Council Plan 2017-2021 and Proposed Annual Budget 2017/18, a public exhibition process will be undertaken in accordance with Section 223 of the Act.
The process will involve:
· Public exhibition of the draft Council Plan and Proposed Budget on Council’s website as well as at all Council Service Centres and local libraries.
· Advertisements in the local papers seeking comments or feedback from the community on the Draft Council Plan and Proposed Budget.
To this end, an advertisement will be placed in ‘The Age’ newspaper on Thursday 11 May 2017 advising the community that documents are available for viewing on Council’s website, and will also be available from any of Council’s Service Centres and Libraries on this date. A copy of the advertisement will also be placed in the Maroondah Leader on Tuesday 16 May 2017.
Both written and online comments on both documents will be received at the Civic Centre up until 5pm, 9 June 2017.
The process will be formalised through public submissions under Section 223 of the Act. A meeting to hear submissions will take place at 7.00pm on Wednesday 14 June 2017 at Maroondah City Council Offices. Anyone wanting to make a submission to the Council should advise of this requirement in their written submission, giving a name and contact number.
Written submissions should also be addressed to:
Mr Steve Kozlowski
Chief Executive Officer
PO Box 156
RINGWOOD VIC 3134
During the public consultation period (i.e. 12 May to 9 June 2017), residents and property owners may obtain further information about the Proposed Budget by appointment.
Once the community feedback is considered, the documents will be amended as appropriate and be brought back to Council for formal endorsement. At this stage, this is planned for the Council Meeting on 26 June 2017.
The draft Council Plan 2017-2021 and Proposed Budget 2017/18 have been prepared for community consultation. They reflect Council’s commitment to pursue excellence, good governance and responsible management of resources for the community within the City of Maroondah.
Given Council’s legislative obligations it is appropriate to place the draft Council Plan 2017-2021 and Proposed Budget 2017/18 on public exhibition before they are formally considered for adoption.
Draft Council Plan 2017-2021
MCC Proposed Budget 2017-2018
1. provisionally endorses the DRAFT COUNCIL PLAN 2017-2021 AND PROPOSED BUDGET 2017/18, THAT HAVE BEEN PREPARED IN ACCORDANCE WITH SECTIONS 125 AND 127 OF THE LOCAL GOVERNMENT ACT 1989
2. proposes that Mayoral and Councillor allowances:
i. be paid at the levels determined by the Minister for Local Government in accordance with section 73B Local Government Act 1989 – as at 1 July 2017 Councillors $27,079 and Mayor $83,790;
ii. incorporate an amount for a sum equivalent to the Superannuation Guarantee Contribution currently 9.5% as per advice by Local Government Victoria within Circular 42/2016; and
iii. increase both the Councillor and Mayoral allowances up for the remainder of the Council term and - until the next Council review in the year 2020 - in accordance with section 74 Local Government Act 1989, by the levels determined within the annual review of allowances carried out by the Minister for Local Government
3. AUTHORISE THE CHIEF EXECUTIVE OFFICER TO GIVE PUBLIC NOTICE OF THE PREPARATION OF THE PROPOSED PLAN AND BUDGET
4. authorise the release of the DRAFT COUNCIL PLAN 2017-2021 AND PROPOSED BUDGET 2017/18 on public exhibition from 12 May to 9 June 2017 AND receive SUBMISSIONS IN ACCORDANCE WITH SECTION 223 OF THE LOCAL GOVERNMENT ACT 1989
5. APPOINT A COMMITTEE OF COUNCILLORS COMPRISING COUNCILLORS ___________, __________ and __________ TO CONSIDER ANY SUBMISSIONS AND HEAR FROM ANY PERSON/S WHO HAS/HAVE REQUESTED TO BE HEARD IN SUPPORT OF THEIR SUBMISSIONS IN ACCORDANCE WITH THE PROVISIONS OF SECTION 223 OF THE LOCAL GOVERNMENT ACT 1989
6. DETERMINE THAT SUCH COMMITTEE WILL CONSIDER ALL SUBMISSIONS RECEIVED AT A MEETING TO BE HELD IN THE COUNCIL CHAMBERS ON WEDNESDAY 14 JUNE 2017 AT 7PM
7. follOWING EXHIBITION AND CONSIDERATION OF ANY SUBMISSIONS received, THE FINAL COUNCIL PLAN AND/OR aNNUAL BUDGET WILL BE PRESENTED TO cOUNCIL FOR formal consideration at a meeting to be held ON MONDAY 26 JUne 2017 AT 7.30PM