Supplementary Agenda of Council

Council

12 June 2019

13.4. Amendment to Sewer Service Charges

Council officers discovered anomalies in the sewer services residential charges that were published for community exhibition on 11 April 2019, the correct information is presented in this report and requires Council endorsement for further public exhibition.

Director Business and Governance

Officer’s Recommendation

1. That Council resolve to publicly exhibit the corrected Sewer Services charges, reflecting a 3.5% increase.

2. That Council resolve to hold an additional Council meeting on Wednesday 17 July 2019 to consider the community feedback on the corrected Sewer Service charges to enable Rates Notices to be issued in accordance with Part 4 of the Local Government Act 1993.

Executive Summary

This report is brought to Council as an urgent late item to enable correct Rates Notices to be issued in the regulated time frame, which would not be administratively possible if this report and subsequent exhibition period was delayed.

Council officers have discovered that the information exhibited to the public in the Sewer Services section of the Revenue Policy did not correctly reflect the required charges to be included in the overall Budget. As there are increases recommended to individual ratepayers, it is appropriate this section of the Policy be re-exhibited to allow for public feedback.

Background

Council officers recommended a 3.5% increase in sewer charges to cover the budgeted increase in operational expenses estimated at 2.5%, plus a 1.0% increase to increase reserves for Council’s expected contribution to major capital works planned for the coming years.

While this increase had been included in the Budget for the 2019-2020 Financial Year, the figures presented for public exhibition did not reflect this intention and were an administrative error. The table below shows the intended values and those that were exhibited.

Charge Description	Intended Amount	Exhibited Amount	Budget Impact
Sewer charge for all residential or farmland properties	$1,214.00	$1,187.00	$347,507
Sewer charge for unconnected properties	$607.20	$607.20	$0
Volume factor for non-residential properties with 20mm service.	$1,214.00	$1,228.55	($25,176)
Total Budget Impact			$322,331

Options

The discovery of the errors in the exhibited Sewer Service Usage Charges result in three options being available to Council.

1. That the information presented to the public be amended and re-exhibited to reflect the correct officer recommendations and Budget. This option is an increase in sewer service charges by 3.5%. This increases the budgeted sewer service revenue by $602,245 for the 2019-2020 financial year.

2. That the information presented to the public be amended to be aligned with the State Government property rate increase of 2.7%. This change would be required to be re-exhibited to reflect the officers’ recommendations and Budget. This increases the budgeted sewer service revenue by $464,589 for the 2019-2020 financial year.

3. That Council accept the increase in residential sewer service charges as exhibited and lower the non-residential volume factor charge to match the residential charge. This option is an increase in sewer service charges by 1.2%, resulting in an increase in the budgeted sewer service revenue by $206,484 for the 2019-2020 financial year. This option would not require the re-exhibition of these charges as the only change is a lowering to individual ratepayers’ charges.

Community Engagement

Consultation undertaken

The Sewer Service Charges had been on public exhibition from 11 April 2019 to 9 May 2019.

Consultation Planned

If Option 1 or 2 are adopted by Council, a further public exhibition period for this section of the 2019-2020 Operational Plan will be required, allowing for community feedback.

Financial and resource considerations

Option 2 and 3 will both reduce the budgeted income for the sewer fund, while Option 1 reflects the current budget that has been exhibited.

Funding source		Amount
Option 1 impact on Sewer Services Revenue	$	0
Option 2 impact on Sewer Services Revenue	$	137,656
Option 3 impact on Sewer Services Revenue	$	395,761

Legal /Policy

The following sections of the Local Government Act 1993 apply to this situation.

405 Operational Plan

(1) A council must have a Plan (its Operational Plan) that is adopted before the beginning of each year and details the activities to be engaged in by the council during the year as part of the Delivery Program covering that year.

(2) An Operational Plan must include a statement of the council’s Revenue Policy for the year covered by the Operational Plan. The statement of Revenue Policy must include the statements and particulars required by the regulations.

(3) A council must prepare a draft Operational Plan and give public notice of the draft indicating that submissions may be made to the council at any time during the period (not less than 28 days) that the draft is to be on public exhibition. The council must publicly exhibit the draft Operational Plan in accordance with the notice.

(4) During the period of public exhibition, the council must have for inspection at its office (and at such other places as it may determine) a map that shows those parts of its area to which each category and sub-category of the ordinary rate and each special rate included in the draft Operational Plan applies.

(5) In deciding on the final Operational Plan to be adopted, a council must consider any submissions that have been made concerning the draft Plan.

(6) The council must post a copy of its Operational Plan on the council’s website within 28 days after the plan is adopted.

Part 4 Making of rates and charges

532 Publication of draft Operational Plan

A council must not make a rate or charge until it has given public notice (in accordance with section 405) of its draft Operational Plan for the year for which the rate or charge is to be made and has considered any matters concerning the draft Operational Plan (in accordance with that section).

533 Date by which a rate or charge must be made

A rate or charge must be made before 1 August in the year for which the rate or charge is made or before such later date in that year as the Minister may, if the Minister is of the opinion that there are special circumstances, allow.

534 Rate or charge to be made for a specified year

Each rate or charge is to be made for a specified year, being the year in which the rate or charge is made or the next year.

535 Rate or charge to be made by resolution

A rate or charge is made by resolution of the council.

562 Payment of rates and annual charges

(1) Annual rates and charges may be paid in a single instalment or by quarterly instalments.

(2) If payment is made by quarterly instalments, each instalment is to be a quarter of the rates or charges, disregarding any remainder, together, in the case of the first instalment, with the remainder. However, if the amount of an instalment, other than the first instalment, is not a multiple of 10 cents, the amount of each instalment in excess of a multiple of 10 cents is to be subtracted from that instalment and added to the first instalment.

(3) Except as provided by subsection (4):

(a) if payment is made in a single instalment, the instalment is payable by 31 August, and

(b) if payment is made by quarterly instalments, the instalments are payable by 31 August, 30 November, 28 February and 31 May.

(4) If the rates and charges notice is not served by 1 August:

(a) the single instalment (if payment is made in a single instalment), or

(b) the first 2 instalments (if payment is made by quarterly instalments),

is or are payable by 30 November, or by the day that is 30 days after service of the notice, whichever is the later.

(5) On or before 31 October, 31 January and 30 April, a council must send reminder notices (to be sent separately from the rates and charges notice) to each person whose rates and charges are being paid by quarterly instalments.

Attachments

Nil

Ordinary

Meeting Notice and Agenda

To:

Copy:

Supplementary Agenda

13 Staff Reports – Governance and Strategy (Leading Organisation)

Council

12 June 2019

Staff Reports – Governance And Strategy

12 June 2019