Attachments To Agenda Items

 

 

 

FOR THE

 

Special Meeting of Council

 

13 August, 2015


SHIRE OF BROOME

Special Meeting of Council

13 August 2015

 Attachments To Agenda Items

 

            

6.3.1      LONG TERM FINANCIAL PLAN 2015-2030

Attachment 1      Draft Long Term Financial Plan 2015-2030                                2

6.4.1      ADOPTION OF FEES AND CHARGES AND COUNCILLOR SITTING FEES 2015/2016

Attachment 1      2015/16 SCHEDULE of FEES AND CHARGES                           53

6.4.2      2015/2016 DIFFERENTIAL GENERAL RATES AND MINIMUM PAYMENT

Attachment 1      2015/16 Differential Rating Objects and Reasons              112

Attachment 2      Ministerial Letters of Approval                                               115

6.4.4      MATERIALITY IN FINANCIAL REPORTING

Attachment 1      Policy 2.1.1. Materiality - Reviewed                                      117

6.4.5      ADOPTION OF 2015/2016 ANNUAL BUDGET

Attachment 1      2015/2016 STATUTORY BUDGET                                               121

Attachment 2      2015/2016 STAFF BUDGET                                                         161

Attachment 3      ORGANISATIONAL CHART BY DIRECTORATE                       293                       


Item 6.3.1 - LONG TERM FINANCIAL PLAN 2015-2030

Draft Long Term Financial Plan 2015-2030

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

 


Item 6.4.1 - ADOPTION OF FEES AND CHARGES AND COUNCILLOR SITTING FEES 2015/2016

2015/16 SCHEDULE of FEES AND CHARGES

 

 


Item 6.4.1 - ADOPTION OF FEES AND CHARGES AND COUNCILLOR SITTING FEES 2015/2016

2015/16 SCHEDULE of FEES AND CHARGES

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Item 6.4.2 - 2015/2016 DIFFERENTIAL GENERAL RATES AND MINIMUM PAYMENT

2015/16 Differential Rating Objects and Reasons

 

 

                                                                                                    

 

Objectives and Reasons the Differential Rates and Minimum Payments for the 2015/16 Financial Year

In accordance with Section 6.36 of the Local Government Act 1995, the Shire of Broome is required to publish its Objects and Reasons for implementing Differential Rates.

 

Overall Objective

 

The purpose of the levying of rates is to meet Council’s budget requirements in each financial year in order to deliver services and community infrastructure. Property valuations provided by the Valuer General are used as the basis for the calculation of rates each year. Section 6.33 of the Local Government Act 1995 provides the ability to differentially rate properties based on zoning and/or land use as determined by the Shire of Broome. The application of differential rating maintains equity in the rating of properties across the Shire, enabling the Council to provide facilities, infrastructure and services to the entire community and visitors.

 

Below is a summary of the proposed minimum payments and rates in the dollar for 2015/16

 

Differential Rate Category

Minimum Payment

Proposed

Rate in the $ (Cents)

Proposed

GRV – Residential

$1224

9.399

GRV – Residential Vacant

$1224

15.22

GRV – Commercial

$1224

10.38

GRV – Tourism

$1224

14.715

UV – Rural

$1224

0.5836

UV – Mining

$1224

12.225

UV – Commercial Rural

$1224

2.9656

 

 Gross Rental Value (GRV)

 

The Local Government Act 1995 determines that properties of a Non-Rural purpose be rated using the Gross Rental Valuation (GRV) as the basis for the calculation of annual rates. The Valuer General determines the GRV for all properties within the Shire of Broome every three years and assigns a GRV. The current valuation is effective from 1July 2015. Interim valuations are provided monthly to Council by the Valuer General for properties where changes have occurred (i.e. subdivisions or strata title of property, amalgamations, building constructions, demolition, additions and/or property rezoning). In such instances Council recalculates the rates for the affected properties and issues interim rates notices.

 

 GRV – Residential (The Base Rate for Gross Rental Value)

 

This rating category consists of properties located within the townsite boundaries which have a predominantly residential use. The object of the rate for this category is to be the base rate by which all other GRV rated properties are assessed. The reason is that the other GRV rating categories have a higher demand on Shire resources and vacant land is encouraged to be developed.

 

GRV – Residential Vacant

 

This rating category consists of vacant properties located within the townsite boundaries, excepting land zoned as Tourist, Commercial or Industrial. The object of the rate for this category is to encourage land owners to develop residential vacant land and to reflect the different method used for the valuation of vacant residential land as compared to the GRV-Residential rate category. The reason is that excessive vacant land leaves subdivisions appearing barren and unsightly, to the detriment of the aesthetics of the area. The rate in the dollar for this category is 61% higher than the GRV –Residential base rate.

 

GRV – Commercial

 

This rating category consists of properties used for Commercial, Town Centre or Industrial purposes and non residential vacant land, excluding properties with a tourism use. The object of the rate for this category is to raise additional revenue to fund the costs associated with the higher level of service provided to properties in this category. The reason is that the Shire incurs higher costs to service these areas including car park infrastructure, landscaping and other amenities. In addition, extra costs are also associated with tourism and economic development activities that have a benefit to these ratepayers. The rate in the dollar for this category is 10% higher than the GRV –Residential base rate.

 

GRV – Tourism

 

This rating category consists of properties with a tourism use within the townsite. The object of the rate for this category is to raise additional revenue to fund the costs associated with the higher reliance on Shire resources and the higher level of service provided to properties in this category. The reason this category is rated higher than the base rate for GRV is to fund costs associated with the heavier use of infrastructure and other Council assets and services in addition to contribution toward tourism promotion activities. The rate in the dollar for this category is 57% higher than the GRV –Residential base rate.

 

Unimproved Value (UV)

 

Properties that are predominantly of a rural purpose are assigned an Unimproved Value that is supplied and updated by the Valuer General on an annual basis. The rate in the dollar set for the UV-Rural category forms the basis for calculating all other UV differential rates.

 

UV - Rural (The Base Rate for Unimproved Value)

 

This rating category consists of properties that are exclusively for rural use. The object of the rate for this category is to be the base rate by which all other UV rated properties are assessed. The reason is that the other UV rating categories have a higher demand on Shire resources.

 

UV - Commercial Rural

 

This rating category consists of properties that are outside of the townsite that have a commercial use inclusive of:

 

Pearling Leases;

Pastoral leases or Pastoral use;

Caravan Parks; and

Short Stay Accommodation

 

The object of the rate for this category is to raise additional revenue to fund the additional cost impacts attributed to the servicing of these properties. The reason is that the Shire incurs higher costs in infrastructure maintenance as a result of extra vehicle movements on the shire’s road network due to the activities associated with these properties.

 

UV – Mining

 

This rating category consists of properties that are used for mining, exploration or prospecting purposes. The object of the rate for this category is to raise additional revenue to fund the additional cost impacts to the Shire. The reason this category is rated higher than UV-Commercial is to reflect the higher road infrastructure maintenance costs to Council as a result of frequent heavy vehicle use over extensive lengths of shire roads throughout the year.

 

Minimum Payments

 

The proposed minimum payment of $1,224 has been applied to all rating categories.

 

The object and reason for this minimum payment is to ensure that all property owners in the Shire of Broome are levied a unified and equitable minimum amount. It is also recognition that every property receives some minimum level of benefit of the works and services provided by the Shire.

 

___________.

 

 

Yours Faithfully,

 

 

 

 

K R Donohoe

Chief Executive Officer


Item 6.4.2 - 2015/2016 DIFFERENTIAL GENERAL RATES AND MINIMUM PAYMENT

Ministerial Letters of Approval

 

 


 


Item 6.4.4 - MATERIALITY IN FINANCIAL REPORTING

Policy 2.1.1. Materiality - Reviewed

 

 

CORPORATE SERVICES                                                2.1.1

Finance

 

TITLE:

MATERIALITY IN FINANCIAL REPORTING

ADOPTED:

OCM 7 June 2007 – Pages 130 - 132

REVIEWED:

OCM 19 March 2009 – Pages 26 – 31

SCM 30 July 2009 – Pages 37 – 39

SCM 30 July 2010 – Pages 36 – 39

SCM 17 August 2011 – Pages 37 – 40

OMC 15 March 2012 – Pages 96 – 103

OMC 9 August 2012 –Pages 104 – 107

SMC 28 August 2013 – Pages 45 – 48

SMC 27 June 2014 – Pages 43 - 46

 

ASSOCIATED LEGISLATION:

Local Government (Financial Management) Regulations 1996 – Regulation 34(5).

ASSOCIATED DOCUMENTS:

 

REVIEW RESPONSIBILITY:

Manager Financial Services

DELEGATION:

 

Previous Policy Number N/A

 

Objective:

 

1.   To give application to Australian Accounting Standards Board standard (AASB 1031) on materiality in financial reporting.

2.   To comply with regulation 34(5) of the Local Government (Financial Management) Regulations 1996 (FMR).

3.   To clarify the Council’s view on the tolerable threshold of material variances and to limit the volume of variance reporting to significant information.

 

Definitions:

 

Materiality -    Information is material if its omission, misstatement or non-disclosure has the potential, individually or collectively, to;

 

a)  Influence the economic decisions of users taken on the basis of the financial statements; or

b)  Affect the discharge of accountability by the management or governing body of the entity.

(AASB 1031 Materiality)

 adversely affect: a) decisions about the allocation of scarce resources made by users of the financial reports, or b) the discharge of accountability by the management or governing body of the Shire.

 

Business Unit -         A key service function that is a sub group of Program activity.

 

Program -                Statutory classification of local government activity programs including Governance; General Purpose Funding; Law, Order & Public Safety; Health; Education & Welfare; Housing; Community Amenities; Recreation & Culture; Transport; Economic Services; Other Property & Services.

 

Nature & Type -      Statutory classification of revenues and expenditures including Rates; Grants & Subsidies; Contributions, Reimbursements & Donations;  Profit on Asset Disposal; Fees & Charges; Interest Earnings; Other Revenue; Employee Costs; Materials & Contracts; Utilities (gas, electricity, water, phone); Depreciation; Loss on Asset Disposal; Interest Expense; Insurance; Other expenditure.

 

Asset Class -            Assets that are Land and Buildings, Infrastructure, Plant and Equipment, and Furniture and Equipment.

 

Operating –            For the purpose of this policy statement, operating revenues and expenditures are considered as recurrent items transacted in the normal course of on-going business operations.

 

Capital  -                 Revenue or expenditure relating to new, upgrade or the renewal of existing assets.

 

Policy:

 

The approach taken in financial reporting is to highlight and comment on actuals or forecasts that vary from budget by;

 

Monthly Statement of Financial Activity

 

Disclosure and supply of appropriate explanations for variances presented in the Statement of Financial Activity is mandatory under FMR 34(2)(b).

 

FMR 34(5) requires a local government to adopt a percentage or value, calculated in accordance with the Australian Accounting Standards (AAS) and Council’s adopted risk management matrix thresholds, to be used in statements of financial activity for reporting material variances. The following thresholds are to be used to report and provide an explanation for to Council:

 

1.   10% with a minimum of $20,000 of the summarised revenue and expenditure by Program, Business Unit, Nature and Type or Asset Class reporting.

 

2.   A forecast total deficit position exceeding 1% of Operating Revenue. requires

 

3.   A statement of materiality shall be included in monthly financial activity statement reports to Council defining the appropriate base for variation analysis.

 

Management Reporting and Budget Reviews

 

The Shire currently produces monthly reporting to senior management and responsible officers to provide timely, relevant and accurate financial information to inform report users of the performance and progress by individual budget line item detail.

 

The Shire also undertakes a quarterly budget review (Finance and Costing Review FACR) over and above the requirements to undertake a mid year budget review as per FMR 33A(1).

 

The Executive Management Group and the Shire’s Responsible Officer Group are required to report and provide explanations should YTD actual vary to YTD budget figures against the following thresholds:

 

1.   $10,000 for an operating revenue and expenditure account or job line item.

 

2.   $20,000 for a capital revenue and expenditure account or job line item.

 

Risk Management and Action Plan

 

Council and Shire management is required to assess reported material variances and associated explanations in accordance with Council’s risk matrix. The materiality thresholds in this policy have been set after analysing the following key risks of the occurrence of material variances:

 

1)   HIGH - Material variances greater than 10% of the summarised revenue and expenditure by Program, Business Unit, Nature and Type or Asset Class are likely to occur at least once a year.

 

2)   HIGH – Material variances greater than $10,000 for operating and $20,000 for capital account/job line items are likely to occur at least once a year.

 

3)   EXTREME – Material variances greater than a forecast deficit of 1% of Operating Revenue are likely to occur at least once a year.

 

Management have set internal thresholds at 50% of the full materiality thresholds to act as an early warning system for investigation to mitigate the above risks. Additionally, staff are to immediately formulate an action plan to remedy the position, once a material variance has been identified, reported and an explanation is provided.

 


 

APPENDIX A – RISK MATRIX

 

Almost Certain

H

H

E

E

E

Likely

M

H

H

E

E

Possible

L

M

H

E

E

Unlikely

L

L

M

H

E

Rare

L

L

M

H

H

Likelihood

Insignificant

Minor

Moderate

Major

Catastrophic

and Impact

Legend

Remedial Outcome

E

Extreme Risk - Immediate intervention required

H

High Risk - Director or CEO must be informed and aware

M

Management responsibility to monitor

 

 

 

L

Operationally address

Frequency

Likelihood of Incident Occuring

Almost Certain

Expected to occur in most circumstances

More than once per year

Likely

Will probably occur in most circumstances

At lease once per year

Possible

Should occur at some time

At least once in three years

Unlikely

Could occur at some time

At least once in ten years

Rare

May occur, only in exceptional circumstances

Less than once in fifteen years

 

Level

Description

Financial Impact

Health

Reputation

Operation

1

Insignificant

Less than $1,000

No injuries

Unsubstantiated, low impact, low profile or no news item

Little impact

2

Low

$1,000 to $10,000

First aid treatment

Substantiated, low impact, low media profile

Inconvenient delays

3

Medium

$10,000 to $50,000

Medical treatment

Substantiated, public embarrassment, moderate impact, moderate media profile

Significant delays to major deliverables

4

High

$50,000 to $150,000

Death or extensive injuries

Substantiated, public embarrassment, high impac media profile, third party actions

Non achievement of major deliverables.

5

Extreme

More than $150,000

Multiple deaths or severe permanent disablements

Substantiated, public embarrassment, very high multiple impacts, high widespread multiple media interactivity, third party action.

Non achievement of key objectives.

 


Item 6.4.5 - ADOPTION OF 2015/2016 ANNUAL BUDGET

2015/2016 STATUTORY BUDGET

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Item 6.4.5 - ADOPTION OF 2015/2016 ANNUAL BUDGET

2015/2016 STATUTORY BUDGET

 

 


 


Item 6.4.5 - ADOPTION OF 2015/2016 ANNUAL BUDGET

2015/2016 STATUTORY BUDGET

 

 


 


 


 


 


 


Item 6.4.5 - ADOPTION OF 2015/2016 ANNUAL BUDGET

2015/2016 STATUTORY BUDGET

 

 


 


 


Item 6.4.5 - ADOPTION OF 2015/2016 ANNUAL BUDGET

2015/2016 STATUTORY BUDGET

 

 


 


 


 


 


 


 


Item 6.4.5 - ADOPTION OF 2015/2016 ANNUAL BUDGET

2015/2016 STAFF BUDGET

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Item 6.4.5 - ADOPTION OF 2015/2016 ANNUAL BUDGET

2015/2016 STAFF BUDGET

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Item 6.4.5 - ADOPTION OF 2015/2016 ANNUAL BUDGET

ORGANISATIONAL CHART BY DIRECTORATE