Agenda of Finance Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Finance Committee Meeting

Page 8

13/12/2016

REPORT TITLE: Remissions and General Assistance Available to Ratepayers

REPORT PROVIDED BY: Group Manager Rates and Procurement

Director Financial Services

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide information reviewing the remissions and general assistance available for ratepayer demographics within the City’s population, including the adequacy of the State Government’s pensioner remission scheme as requested by Council at its meeting on 24 October 2016.

1.2. Knowledge of assistance available to the City’s ratepayers provides broad community benefit.

2. Report Summary

2.1. At its meeting on 24 October 2016 the Council resolved that a report be provided reviewing remissions and general assistance available for ratepayer demographics within the City’s population, including the adequacy of the State Government’s pensioner remission scheme.

2.2. The Council currently provides a range of assistance to ratepayers in need of assistance or support, including payment arrangements, rate postponements, rates exemptions and rate remissions.

2.3. The State Government provides a pensioner rates remission scheme to eligible pensioners under the Local Government (Rates and Charges Remissions) Act 1991. It also provides over 90 concessions and discounts to Tasmanians in need of assistance and support.

2.4. This report reviews the different types of assistance and support available to all ratepayers in the Hobart municipal area.

3. Recommendation

That:

1. The Council write to the State Government seeking a review of the adequacy of the defined maximum annual rate remissions provided under the Local Government (Rates and Charges Remissions) Act 1991.

4. Background

4.1. At its meeting on 24 October 2016 Council resolved the following:

4.1.1. The Council adopt the City of Hobart Rates and Charges policy marked as Attachment A to item 6.2 of the Open Finance Committee agenda of 18 October 2016.

4.1.2. The General Manager be authorised to finalise the City of Hobart Rates and Charges policy and arrange for it to be made available to the public in paper format from the Council’s Customer Service Centre and in an electronic format from the Council’s website.

4.1.3. A further report be provided reviewing remissions and general assistance available for ratepayer demographics within the City’s population, including the adequacy of the State Government’s pensioner remission scheme.

4.2. The City of Hobart Rates and Charges Policy has been finalised and made available from Council’s website and in print from the Customer Service Centre. This report addresses the Council resolution at Section 4.1.3 above.

4.3. The Council currently provides a range of assistance to any / all ratepayers (ratepayer demographics) in need of assistance or support, including payment arrangements, rate postponements, rates exemptions and rate remissions. These are described in detail below and can be summarised as follows:

Concession Type	Eligibility Criteria	Concession	Ratepayer Demographic
Hardship Payment Arrangement	Any ratepayer in financial hardship	Temporary reduced payments or payments spread over longer time periods	All
Rate Postponement	Outlined in Council Policy – Attach A	50% annual rates postponed for the lifetime of the applicant or until sale of property takes place. Interest rate of 5% payable on principle only.	Pensioners
General Rate exemption	Outlined in section 87 of LG Act – Attach B	100% rebate of General Rate	Prescribed land types
Fire Service Rate exemption	Outlined in section 78 of Fire Services Act 1979 - Attach D	100% rebate of Fire Service Rate	Prescribed property types
Remission of Storm water Removal Service Rate	Property does not receive a storm water service from Council	100% remission of Storm water Service Rate	500 properties in rural / remote areas
Remission of Waste Management Service Charge	Property does not receive a standard garbage collection service from Council	100% remission of Waste Management Service Charge and Landfill Rehabilitation Service Charge	1000 properties – mainly vacant land
Natural Gas Rebate	For natural gas appliances purchased as a part of a household connecting to the natural gas network	$250 per annum	All
Native Vegetation Rebate	Discounted rates for private properties where areas of native vegetation with significant biodiversity values are formally and voluntarily protected	$6.04 per hectare with a minimum rebate of $60.40 per property, maximum rebate of $604 per property	All
State Government Pensioner Remission	Determined by Department of Treasury and Finance	30% off annual rates capped at $292 if also a TasWater customer or $430 if not (2016/17 figures) 20% off Fire Service Rate (provided by State Fire Commission, no cap)	Pensioners
Council Pensioner Remission	Pensioners eligible for the State Government pensioner remission above plus self funded retirees	10%. By policy decision, the state government maximum and Council remission are linked and together, capped at $302. Effectively, pensioners receive $10 from Council.	Pensioners (including self funded retirees)

Hardship Payment Arrangements

4.4. Under Council Policy Collection of Rates Arrears, in response to approaches by ratepayers who have difficulty in meeting scheduled payments, suitable arrangement for payments are considered and entered into.

4.5. Council’s Rates Officers work with ratepayers to manage arrears, particularly in times of financial hardship.

4.6. Rates Officers are also aware of general assistance available from the State Government to help Tasmanians with the cost of living.

Rate Postponements

4.7. Pursuant to Section 125 of the Local Government Act 1993 (LG Act) a ratepayer may apply to the council for a postponement of payment of rates on the ground of hardship.

4.8. Section 126 of the LG Act states that the conditions of postponement are as follows:

4.8.1. (1) A council may grant a postponement of the payment of rates for a specified period if satisfied that such payment would cause hardship.

4.8.2. (2) A council may grant a postponement of payment of rates –

4.8.2.1. (a) on the condition that the ratepayer pay interest on the amount of rates postponed at a rate fixed by the council; and

4.8.2.2. (b) on any other condition the council determines.

4.8.3. (3) Interest fixed under subsection (2)(a) is not to exceed the prescribed percentage as calculated in section 128(2).

4.9. The Council has adopted a policy on Rate Postponements – refer Attachment A.

4.10. Council’s policy on rate postponements has traditionally been linked to older Australians who qualify for the pensioner remission on specified conditions and on the condition that:

4.10.1. (i) The amount to be postponed in any year to be the amount requested by the applicant but not exceeding 50% of the amount payable in that year.

4.10.2. (ii) The period of postponement to be for the lifetime of the applicant or, should the property be sold during the applicant’s lifetime, until the sale takes place, whereupon the amount will be due and payable.

4.10.3. (iii) An interest rate of 5% shall be payable on the amount subject to postponement, and be payable on the same terms as the amount deferred, namely death or sale of the property, and interest be charged on the principle only.

4.11. Postponed rates as at 30 June 2016 totalled $90,653.

Rate Exemptions

4.12. Section 87 of the LG Act sets out the exemptions from [effectively] General Rates – refer Attachment B.

4.13. The exemptions within S87 of the LG Act are generally read as being limited to circumstances where there is a public benefit, rather than circumstances where there is purely a commercial or private benefit.

4.14. In April 2015 the Council approved a new policy, Rates Exemption – Charitable Purposes, that outlines the Council’s approach to assessing whether land falls within the charitable exemption of Section 87(1)(d) of the LG Act – refer Attachment C.

4.15. Section 78 of the Fire Services Act 1979 permits the exemption of the Fire Service Rate in certain circumstances – refer Attachment D. It should be noted that the City of Hobart collects the Fire Service Rate on behalf of the Tasmanian Government and passes it onto the Tasmania Fire Service.

Rate Remissions

4.16. Rate remissions are generally provided for under Section 129 of the LG Act, which states that:

(1) A ratepayer may apply to the council for remission of all or part of any rates paid or payable by the ratepayer or any penalty imposed or interest charged under section 128.

(2) An application is to be –

(a) made in writing; and

(b) lodged with the general manager.

(3) A council, by absolute majority, may grant a remission of all or part of any rates, penalty or interest paid or payable by the ratepayer.

(4) A council, by absolute majority, may grant a remission of any rates, penalty or interest paid or payable by a class of ratepayers.

(5) The general manager is to keep a record of the details of any remission granted under this section.

4.17. The Council has delegated to the General Manager the power to consider rate remission requests up to $2,000. Rate remission requests over $2,000 are considered by the Council.

4.18. The Council currently provides the following rate remissions to eligible ratepayers:

4.18.1. Remission of the Storm water Removal Service Rate and/or Waste Management Service Charge under Council Policy Rate Remissions – Service Rates/Charges, which states that pursuant to Section 129 of the LG Act, a property shall only receive a remission of the storm water and/or waste management service charge in the event that:

4.18.1.1. The property does not receive and is not capable of receiving a standard garbage collection service or a storm water service from the Council whatsoever; and

4.18.1.2. Even if the property were capable of receiving such a service, any request to Council for such a service would be denied.

4.18.2. 500 properties currently receive the storm water removal service rate remission and approximately 1000 properties receive a waste management service charge remission, which includes vacant land and council owned properties.

4.18.3. E. Kalis Properties Pty Ltd receives a remission of rates under a Development Assistance Deed for the redevelopment of the former Myer site.

4.18.4. Sultan Holdings Pty Ltd receives a remission of rates under a Development Agreement for the Argyle Street Carpark Redevelopment project.

4.18.5. Natural gas rebate. Forty properties received a $250 rebate in 2015/2016, which was deducted from the rates levied on the property.

4.18.6. Rate rebate for native vegetation protection. Council offers rates rebates for landowners who voluntarily protect native vegetation with significant conservation values. The annual rates rebate is $6.04 per hectare with a minimum rebate of $60.40 per property and a maximum rebate of $604 per property. A small number of properties currently receive this rebate.

Rate Remission Policies

4.19. The LG Act is silent on the grounds for a remission of rates or the grounds for a decision by the Council to grant a remission. Rate remission requests are considered on a case by case basis, by examining the relevant facts of the matter and making decisions pursuant to the City of Hobart Rates and Charges Policy.

4.20. Most Tasmanian Councils do not have a separate policy regarding S129 of the LG Act, rather councils include a policy statement in their general rates and charges policy that ratepayers can apply for a rates remission under Section 129 of the LG Act and how to do so, as prescribed under that part. This is the City of Hobart’s approach.

4.21. The Launceston City Council (LCC) is an exception. LCC has adopted a policy position to explain its approach to rating exemptions and remissions for charitable organisations – refer Attachment E.

State Government Pensioner Rate Remission Scheme

4.22. Pensioners eligible for assistance under the Local Government (Rates and Charges Remission) Act 1991 may receive a rates remission. Eligibility of a pensioner remission and eligibility criteria is determined by the State Government – Department of Treasury and Finance.

4.23. In order to be eligible for the pensioner remission the applicant must be liable to pay the rates on the property that they occupy as their principal place of residence as at 1 July of the financial year to which the rates relate.

4.24. Pursuant to Section 120 of the LG Act, the owner is taken to be liable for the rates of a property. Ownership is normally determined by reference to the title of the property to which the rates relate. In the example of an independent living unit resident, they would not be the owner of the independent unit and hence not liable for the rates of the property.

4.25. However, under Section 120(2) of the LG Act, the occupier of the land may, with the written consent of the owner, decide to accept liability for the payment of the rates. In these cases, the occupier must provide a copy of the written agreement to notify the council’s General Manager in accordance with Section 120(3) of the LG Act.

4.26. A pensioner remission is available to pensioners who hold one of three types of cards issued by either Centrelink of Department of Veterans Affairs:

4.26.1. Pensioner Concession Card – issued by Centrelink and Department of Veterans Affairs

4.26.2. Centrelink Health Care Card

4.26.3. Repatriation Health Card – i.e. ‘Gold Card’ endorsed Total or Permanent Injury (TPI) or War Widow/Widower DVA.

4.27. An Australian Government Seniors Health Card does not qualify the holder for a rates remission.

4.28. Eligible pensioners are entitled to:

4.28.1. A 30% remission of their rates up to a maximum limit. For 2016/2017 this was $292 for those pensioners also a customer of TasWater and $430 for pensioners not a customer of TasWater. This is reimbursed to Council by the State Government.

4.28.2. A 20% remission off the Fire Service Rate pursuant to section 95 of the Fire Service Act 1979. There are no maximum limits. This is reimbursed to Council by the State Fire Commission.

4.29. There is a limit of one remission per year per pensioner household. A pensioner who is a multiple property holder is not entitled, to receive more than one remission per year.

4.30. The State Government allow retrospective claims for the prior year to be paid to eligible pensioners.

Council pensioner remission policy

4.31. Council currently funds a 10% remission to all pensioners including holders of the Seniors Health Card who don’t qualify for the State Government pensioner remission. The Council remission, by policy decision, is linked to the state government maximum such that the two remissions combined, are capped at $302. The state government maximum of $292 cuts in at quite a low AAV value meaning all eligible ratepayers receive the maximum. Accordingly, all receive a $10 remission from Council.

4.32. Approximately 12.5% of all ratepayers in the Hobart municipal area receive a pensioner rates remission at a cost of $1.1M per annum funded by the State Government.

4.33. 13.3% of all ratepayers in the Hobart municipal area receive the Council $10 rates remission, which includes self funded retirees not otherwise eligible for the State Government pensioner rates remission, at a cost of $31,830 to the Council as at 30 June 2016.

General Assistance

4.34. The Tasmanian Government offers a wide range of discounts and concessions to eligible Tasmanians on a wide range of services such as housing, transport, electricity, water and sewerage, heating, education, event attendance, entries to national parks and health services to assist those experiencing hardship and in need of support in the community.

4.35. The State Government produce a Guide detailing over 90 concessions available to eligible persons in Tasmania. The 2016-17 Tasmanian Government Discounts and Concession Guide is attached – refer Attachment F.

Adequacy of the Pensioner Remission

4.36. It is difficult to determine the adequacy of the State Government pensioner remission scheme. Taking the approach of comparing the assistance provided by other councils to that provided by the City of Hobart is also difficult because the legislative environment in which councils in other states / territories and outside of Australia vary to that of Tasmania. Councils’ funding models also vary with some councils relying more heavily on rates, rather than grants, than others.

4.37. In 2016-2017 it will cost the State Government $16.736M to fund the pensioner rates remission scheme. The State Government’s Forward Estimates show this increasing to $17.166M in 2017-18, $17,607M in 2018-19 and $18.060M in 2019-20.

4.38. Funding constraints and a need for concessions to other groups are likely reasons the pensioner remission scheme is capped at a maximum remission as outlined in section 4.40 below.

4.39. However, it should be noted that the maximum remission is indexed annually to ensure that rate relief increase in line with inflation.

4.40. The 30% remission is capped at either $292 or $430 for 2016/17 varying depending whether you are a customer of TasWater or not. Most of the City’s pensioners are a customer of TasWater. All of the City’s eligible pensioners receive the maximum capped remission. The 20% remission of the Fire Service Rate isn’t capped and all eligible pensioners receive the 20% remission off the Fire Service Rate.

4.41. For an average residential ratepayer (with an AAV of $20,441 and an annual rates bill of $2,218.50) who is also a customer of TasWater the pensioner rates remission equals $354.74 off the annual rates bill, which includes the $10 council concession.

4.42. As noted above, the state government maximum of $292 cuts in at quite a low AAV value meaning all eligible ratepayers receive the maximum of $292. Accordingly, all receive a $10 remission from Council.

4.43. Rates are a form of tax as outlined in Section 86A(1) of the LG Act, which states that:

4.44. In …. making decisions concerning the making of rates, Council has taken into account the following pursuant to section 86A(1) of the LG Act:

4.44.1. (a) rates constitute taxation for the purposes of local government, rather than a fee for a service; and

4.44.2. (b) the value of rateable land is an indicator of the capacity of the ratepayer in respect of that land to pay rates.

4.45. Council rates are based on property values and are therefore a property tax. Generally the Act expects that the higher the value of the property the higher the rates to be paid.

4.46. The LG Act therefore contemplates that the amount of rates you pay will be determined by the value of your property. It is therefore arguable that rates, being a tax system, could be used, as an example, to provide welfare support to individual owners or groups of owners. Particularly in the context that any support provided to an individual owner or group of owners is paid for by every other ratepayer in the form of increased rates. Albeit the effect will vary dependent upon the quantum of rate remission provided.

4.47. Therefore, providing rate remissions on the grounds of financial hardship may not lead to a desirable outcome for the City and the City has other means to provide support to ratepayers who find themselves in financial hardship.

4.48. There is, however, a community benefit in providing assistance through rating relief to certain organisations where a benefit to the community can be established. Usually, these types of organisations are covered by rate exemption provisions under Section 87 of the LG Act.

5. Proposal and Implementation

5.1. It is proposed that the Committee note the remissions and general assistance available to ratepayers within the Hobart municipal area.

5.2. Given the difficulty of assessing the adequacy of the State Government pensioner remission scheme, it is proposed that Council write to the State Government seeking a review of the adequacy of the defined maximum annual rate remissions provided under the Local Government (Rates and Charges Remissions) Act 1991. It is noted that the amount is indexed each year to keep in line with inflation.

5.3. Council may also wish to review its pensioner remission policy given all eligible pensioners only receive $10 from Council. There would be financial implications of this – refer Section 7.

6. Strategic Planning and Policy Considerations

6.1. This report relates to Council’s Rates and Charges Policies, including:

6.1.1. Collection of Rates Arrears.

6.1.2. Rates Exemption – Charitable Purposes.

6.1.3. Rate Postponements.

6.1.4. Rate Remissions – Services Rates-Charges.

6.1.5. Rates Remissions.

6.2. This report also relates to the City of Hobart Rates and Charges Policy, which outlines Council’s policy position on rate rebates, rate remissions and payments as outlined in Section 4 above.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. There are no financial implications arising from this report as this report has been provided for information purposes and rates have already been levied for 2016/2017.

7.1.2. However, rate remissions granted in 2016/2017 would be unfunded and would decrease Council’s budgeted operating surplus for 2016/2017.

7.2. Impact on Future Years’ Financial Result

7.2.1. Any increase in the pensioner concession provided by Council would need to be funded from budget estimates in the year provided and future years if Council resolved to do so.

7.2.2. There would be no impact on future years’ financial result from any increase in rate remissions as Council will simply set the budget for the amount of rates it needs to raise (in other words, there would be an offsetting increase in rates to fund any additional remission provided). However, granting a remission to some ratepayers means that other ratepayers will need to pay more in rates, effectively subsidising the remission, albeit the effect will be minor for individual ratepayers.

7.3. Asset Related Implications

7.3.1. Not applicable.

7.4. It should be noted that the City’s rates arrears are, by industry standards, very low. As at 30 June 2016 gross rates outstanding expressed as a percentage of annual rate revenue was 1.20%, the lowest figure since 30 June 2010 (which was the lowest figure for at least 20 years). The 2015/16 state average was 4.5% (source: draft Auditor-General report to Parliament).

8. Legal, Risk and Legislative Considerations

8.1. These have been considered elsewhere in the report.

9. Delegation

9.1. This matter is delegated to the Council.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

Lara MacDonell

Group Manager Rates and Procurement

David Spinks

Director Financial Services

Date: 6 December 2016

File Reference: F16/125850; 22-2-1

Attachment a: Council Policy Rate Postponements ⇩

Attachment b: Section 87 - Local Government Act 1993 ⇩

Attachment c: Council Policy Rates Exemption - Charitable Purposes ⇩

Attachment d: Section 78 - Fire Service Act 1979 ⇩

Attachment e: Launceston City Council Policy Rate Remissions and Rebates ⇩

Attachment f: Tasmanian Government Concessions Guide 2016-17 ⇩

Item No. 6.1

Agenda (Open Portion)

Finance Committee Meeting - 13/12/2016

Page 36

ATTACHMENT f

Page_000001

Page_000002

Page_000003

Page_000004

Page_000005

Page_000006

Page_000007

Page_000008

Page_000009

Page_000010

Page_000011

Page_000012

Page_000013

Page_000014

Page_000015

Page_000016

Page_000017

Page_000018

Page_000019

Page_000020

Page_000021

Page_000022

Page_000023

Page_000024

Page_000025

Page_000026

Page_000027

Page_000028

Page_000029

Page_000030

Page_000031

Page_000032

Page_000033

Page_000034

Page_000035

Page_000036

Page_000037

Page_000038

Page_000039

Page_000040

Page_000041

Page_000042

Page_000043

Page_000044

Page_000045

Page_000046

Page_000047

Page_000048

Page_000049

Page_000050

Page_000051

Page_000052

Page_000053

Page_000054

Page_000055

Page_000056

Page_000057

Page_000058

Page_000059

Page_000060

Page_000061

Page_000062

Page_000063

Page_000064

Page_000065

Page_000066

Page_000067

Page_000068

Page_000069

Page_000070

Page_000071

Page_000072

Page_000073

Page_000074

Page_000075

Page_000076

Item No. 6.2

Agenda (Open Portion)

Finance Committee Meeting

Page 113

13/12/2016

REPORT TITLE: Annual Review of Loan and Investment Portfolios - November 2016

REPORT PROVIDED BY: Manager Finance

Director Financial Services

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide details of the Council’s current loan and investment portfolios and to discuss early repayment options.

2. Report Summary

2.1. The Council’s loan portfolio as at 31 October 2016 was $13.097M, with a weighted average interest rate of 5.56% per annum.

2.2. The balance of the Council’s investment portfolio as at 31 October 2016 was $21.3M, with a weighted average interest rate of 2.45% per annum.

2.3. The Council is able to refinance loans which are attracting higher than the current market rate of interest at more attractive rates, but only after incurring significant up-front penalties. Furthermore, future cost savings would not be sufficient to recover the penalties in full.

2.4. Repaying loans using the Council’s owns funds is not an option due to restrictions or funds being earmarked for future spending, in particular the 10 year capital works program approved by the Council in April 2016.

3. Recommendation

That:

1. The Finance Committee receive and note the information contained in the report titled “Annual Review of Loans and Investment Portfolio – November 2016”.

2. The Council not pursue refinancing of its loan portfolio.

4. Background

4.1. At its meeting held on 21 September 2013, the Finance and Corporate Services Committee requested a report be provided reviewing the Council’s current loan and investment portfolios, noting the interest rate differential between the two portfolios, with such a review to occur annually.

4.2. Loan Portfolio

4.2.1. As at 31 October 2016, the balance of the loan portfolio was $13.097M. The details are as follows:

Lender	Loan Amount ($,000)	Principal & Interest (P&I) or Interest Only (IO)	Drawdown Date	Term (years)	Maturity Date	Interest Rate (fixed)	Balance ($,000)	Early repayment cost ($,000)
Commonwealth Bank	4,800	P&I	30/06/2006	30	30/06/2036	6.41%	4,052	1,312
Tascorp	1,700	P&I	30/06/2010	10	30/06/2020	6.48%	836	7
Tascorp	1,850	P&I	30/06/2011	10	30/06/2021	6.24%	1,066	14
Tascorp	5,000	P&I	29/06/2012	10	29/06/2022	4.89%	3,284	74
Tascorp	2,500	P&I	28/06/2013	10	30/06/2023	5.13%	1,878	47
Tascorp	2,375	P&I	30/06/2014	10	30/06/2024	4.56%	1,981	52
							13,097	1,506

4.2.2. As at 31 October 2016, the weighted average interest rate of the loan portfolio was 5.56% per annum. This average rate is a low rate, but nonetheless is higher than the rate being earned on investments (see 4.3 below).

4.2.3. The loan portfolio currently includes loans taken out between 2006 and 2014, during which time interest rates have reduced. As a result, these loans are costing more than the current market rate of interest.

4.2.4. Each loan is subject to an early repayment penalty which would be charged in addition to the outstanding principal and any accrued interest. This penalty makes it unattractive to refinance loans at a lower interest rate.

4.2.5. This is the same conclusion as previous reviews. As part of the 2015 review, Wise Lord & Ferguson reviewed the Commonwealth bank loan specifically, and also concluded that it would not be cost effective to refinance that loan.

4.3. Investment Portfolio

4.3.1. As at 31 October 2016, the balance of the investment portfolio was $21.3M and the weighted average interest rate of the term deposits was 2.45% per annum.

5. Proposal and Implementation

5.1. It is proposed that the Council does not retire any of its current debt early due to the punitive early retirement fees and the impact on other initiatives, in particular the 10 year capital works program.

6. Strategic Planning and Policy Considerations

Goal 5 – Governance is applicable in considering this report, particularly

Strategic 5.1 objective:

“The organisation is relevant to the community and provides good governance and transparent decision-making”.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Early loan repayment penalties have not been budgeted for and are not included in current forecast results.

7.1.2. The Council is able to refinance loans which are attracting higher than the current market rate of interest at more attractive rates, but only after incurring significant up-front penalties. Furthermore, future cost savings would not be sufficient to recover the penalties in full.

7.2. Impact on Future Years’ Financial Result

7.2.1. Future cost savings would not be sufficient to recover early repayment in full.

7.2.2. The Council’s Long-Term Financial Plan is premised on requiring further debt from 2018/19 to fund the 10 year capital works program. Debt levels will need to increase as the capital works program progresses.

8. Delegation

8.1. This matter is delegated to the Council.

Fiona Dixon

Manager Finance

David Spinks

Director Financial Services

Date: 8 December 2016

File Reference: F16/133043

Item No. 6.3

Agenda (Open Portion)

Finance Committee Meeting

Page 117

13/12/2016

Memorandum: Finance Committee

Outstanding Long Term Parking Debts as at 30 November 2016

Information on sundry and long term parking debts (greater than $2,000) is provided to the Finance Committee on a quarterly basis. At the Finance Committee meeting of 15 June 2016, it was resolved that the debts be reported separately to allow the reporting of long term parking debts to appear on the Open portion of the Finance Committee agenda.

This memorandum provides information on long term parking debts only. Debts relating to rates, sundry debts and parking fines are reported separately to the Finance Committee and animal debts are managed by City Planning Division.

The table below, in comparison to the same period last year, shows:

· a 9% decrease (-$6,377.70) in total debts outstanding;

· a $3,269.83 increase in the 90 days and over category; and

· a $1,777.69 increase in debts 30 days and older (*), although this is impacted by an invoice timing issue.

	31-Nov-15	% of total O/S	31-Oct-16	% of total O/S	31-Nov-16	% of total O/S
	$		$		$
Current	59,081	84%	61,287	79%	50,926	79%
30 days	5,931	8%	-177	0%	5,770	9%
60 days	908	1%	8,196	11%	-423	-1%
90 days	4,818	7%	8,234	11%	8,087	13%
Total	70,738		77,541		64,360

* 30 days+(all)	11,657	16%	16,254	21%	13,434	21%

DEBTS GREATER THAN $2,000

There are currently no outstanding long term parking debts greater than $2,000.

REcommendation

That the information contained in the memorandum of the Manager Finance and Director Financial Services of 2 December 2016 titled “Outstanding Long Term Parking Debts as at 30 November 2016” be received and noted.

Peter Jenkins

Manager Finance

David Spinks

Director Financial Services

Date: 8 December 2016

File Reference: F16/134295

about people	We value people – our community, our customers and colleagues.
professional	We take pride in our work.
enterprising	We look for ways to create value.
responsive	We’re accessible and focused on service.
inclusive	We respect diversity in people and ideas.
making a difference	We recognise that everything we do shapes Hobart’s future.