Agenda of Finance Committee Meeting

Agenda (Open Portion)

Finance Committee Meeting

Page 5

15/2/2017

Finance Committee Meeting (Open Portion) held Wednesday, 15 February 2017 at 5.00 pm in the Lady Osborne Room, Town Hall.

COMMITTEE MEMBERS

Thomas (Chairman)

Deputy Lord Mayor Christie

Zucco

Ruzicka

Sexton

ALDERMEN

Lord Mayor Hickey

Briscoe

Burnet

Cocker

Reynolds

Denison

Harvey

Apologies: Nil.

Leave of Absence: Nil.

1. Co-Option of a Committee Member in the event of a vacancy

2. Confirmation of Minutes

The minutes of the Open Portion of the Finance Committee meeting held on Tuesday, 13 December 2016, and the Open Portion of the Special Joint City Infrastructure and Finance Committees meeting held on Monday, 23 January 2017, are submitted for confirming as accurate records.

3. Consideration of Supplementary Items

Ref: Part 2, Regulation 8(6) of the Local Government (Meeting Procedures) Regulations 2015.

Recommendation

That the Committee resolve to deal with any supplementary items not appearing on the agenda, as reported by the General Manager.

4. Indications of Pecuniary and Conflicts of Interest

Ref: Part 2, Regulation 8(7) of the Local Government (Meeting Procedures) Regulations 2015.

Aldermen are requested to indicate where they may have any pecuniary or conflict of interest in respect to any matter appearing on the agenda, or any supplementary item to the agenda, which the committee has resolved to deal with.

5. Transfer of Agenda Items

Regulation 15 of the Local Government (Meeting Procedures) Regulations 2015.

A committee may close a part of a meeting to the public where a matter to be discussed falls within 15(2) of the above regulations.

In the event that the committee transfer an item to the closed portion, the reasons for doing so should be stated.

Are there any items which should be transferred from this agenda to the closed portion of the agenda, or from the closed to the open portion of the agenda?

Item No. 6.1

Agenda (Open Portion)

Finance Committee Meeting

Page 8

15/2/2017

REPORT TITLE: United Nations & Overseas Policing Association of Australia Conference October 2017 - Request for Civic Reception

REPORT PROVIDED BY: Group Manager Executive & Economic Development

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to present a request from
Mr Mick Travers APM, National President of the United Nations & Overseas Policing Association of Australia, for the Council to hold a Civic Reception, for members and their families as part of its biannual conference to be held in Hobart between 21 to 25 October 2017 (refer Attachment A).

1.1.1. It is requested that a Civic Reception, in the form of a morning tea, be held at the Town Hall on United Nations Day, 11.00 am Tuesday 24 October 2017.

1.2. Australian police have a proud 53-year history in the United Nations and other peacekeeping missions since the first deployment to Cyprus in 1964, that deployment and many subsequent have had Tasmanian police officers in its ranks.

2. Report Summary

The Council has been approached by UNOPAA requesting the Council hold a Civic Reception for its members and their families to be held at the Town Hall on United Nations Day, 11:00 am Tuesday 24 October 2017.

3. Recommendation

That:

1. The request from the National President of the United Nations & Overseas Policing Association of Australia for the Council to hold a Civic Reception for 155 attendees, as part of its biannual conference, on Tuesday 24 October 2017, be approved.

2. The estimated cost of $1,800 be attributed to the Civic and Ceremonial Support Activity within the 2017/2018 Annual Plan.

4. Background

4.1. The United Nations and Overseas Policing Association of Australia (UNOPAA) is a social organisation based in Australia. Its members are serving or former Australian police officers who have or are currently serving with the United Nations Peacekeeping Forces or on other overseas police missions or operations.

4.2. The UNOPAA represents more than 2200 Australian police officers from every state and territory including Tasmanian police officers that have served with either the United Nations or other peacekeeping or peace-making missions overseas such as the Solomon Islands,
Timor Leste and Afghanistan.

4.3. The UNOPAA biannual conference will be attended by approximately 80 delegates and held in Hobart from 21 October to 25 October 2017, at the Old Woolstore Hotel and various other locations around Hobart.

4.4. The biannual conference will also be used as a platform to bring together retired and serving police from across Australia and overseas to reunite and remember their service and especially remember those members who paid the ultimate sacrifice in the ‘service of peace’.

5. Proposal and Implementation

5.1. The Council has been approached by UNOPAA requesting the Council hold a Civic Reception for members and their families as part of its biannual conference to be held in Hobart between 21 to 25 October 2017.

5.1.1. There will be a memorial service conducted at St David’s Cathedral commencing at 9:30 am and concluding with a proposed short march down Macquarie Street to the Town Hall, where respects to the Lord Mayor, Commissioner Tasmania Police and other dignitaries would be paid.

5.1.2. It is requested that a Civic Reception, in the form of a morning tea, be held for members and their families at the Town Hall on United Nations Day, 11:00 am Tuesday 24 October 2017. It is envisaged that the event will be attended by members and their families, with an expected total of 140.

6. Strategic Planning and Policy Considerations

6.1. This request aligns with the Capital City Strategy Plan 2015-2025 as below:

6.1.1. Goal 1 – Economic Development, Vibrancy and Culture, Strategic Objective 1.2:

Strong national and international relationships

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. No impact on the current year operating results.

7.2. Impact on Future Years’ Financial Result

7.2.1. In the event that the proposal is supported, the Council’s assistance would be listed in the 2017/2018 Annual Report in accordance with its policy and in respect to disclosure of grants and benefits.

7.2.2. In terms of the request for the Council to host a reception, including food, drinks and waiting staff, the cost of approximately $1,800, based on 155 guests, including Aldermen, their partners and City of Hobart officers, would be attributed to the to the Civic and Ceremonial Support Activity within the 2017/2018 Annual Plan.

7.2.2.1. Traditionally an amount of $20,000 has been allocated on an annual basis for Council approved Civic Receptions. It is anticipated that a similar amount will be included in the 2017/2018 Annual Plan.

7.2.2.2. At this point in time, the only known approved Civic Reception is Council’s annual Antarctic Season Reception with a budget of approximately $7,500.

7.2.3. Not with standing this, were Council to approve the annual allocation of the $20,000 within the 2017/2018 Annual Plan, there would be sufficient funds for the requested Civic Reception.

7.3. Asset Related Implications

7.3.1. None arise from this report.

8. Legal, Risk and Legislative Considerations

8.1. None arise from this report.

9. Environmental Considerations

9.1. None arise from this report.

10. Social and Customer Considerations

10.1. Australia Police have a proud 53-year history participating in the United Nations and other peacekeeping missions since the first deployment to Cyprus in 1964, that deployment and many subsequent have had Tasmanian police officers in its ranks.

11. Marketing and Media

11.1. A suitable media release could be issued in conjunction with UNOPAA at the appropriate time.

12. Delegation

12.1. This request is delegated to the Council for determination.

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.

Tim Short

Group Manager Executive & Economic Development

Date: 10 February 2017

File Reference: F17/7996; 13-20-4

Attachment a: Letter dated 16 November 2016 from UNOPAA requesting a Council Civic Reception ⇩

Item No. 6.2

Agenda (Open Portion)

Finance Committee Meeting

Page 15

15/2/2017

REPORT TITLE: Draft Local Government Amendment (Rates) Bill 2017

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 to Council on the State Government’s proposal to amend the rating provisions in the Local Government Act 1993 (LG Act) in relation to certain types of land in Tasmania.

1.2. The proposed amendments to the LG Act seek to clarify the State Government’s policy intentions in respect to rating of marine facilities and land leased from the Crown. The proposed changes will provide clarity to ratepayers in understanding when a general rates rebate applies under section 87(1)(b) of the LG Act, clarity to Councils in determining rating practices and will ensure that the rates are charged on the specified land on a fair and consistent basis across all ratepayers.

2. Report Summary

2.1. As outlined in a memorandum to the Finance Committee on 16 August 2016, Tasmanian Councils have traditionally levied general rates on marine facilities, which are on or adjacent to crown land based on valuation and property identification data from the Office of the Valuer-General. These properties are on the City of Hobart valuation roll.

2.2. Tasmanian Councils have done so on the belief that the rating exemptions provided for under the Local Government Act 1993 (LG Act) supported the intentions of the 2003 financial reform agreement between State and Local Government, which was not to provide rating exemptions for private or commercial benefit from the use of such land.

2.3. A recent High Court decision has raised deficiencies within legislation that contradicted the policy intent of the State Government. There is also inconsistency (differing legal opinion) in the application of Section 87(1)(b) of the LG Act in relation to reserve Crown land that is used by private or commercial lease or licence holders.

2.4. The Department of Premier and Cabinet’s Local Government Division has prepared a draft ‘Local Government Amendment (Rates) Bill 2017’ to address the issues above. The purpose of the Bill is to amend the LG Act to provide clarity and consistency for Councils in the application of rating provisions for marine facilities and reserve Crown land in the LG Act.

2.5. The draft ‘Local Government Amendment (Rates) Bill 2017’ was released by DPAC for stakeholder consultation on 24 January 2017. The State Government has written to LGAT inviting a formal response to the changes to the LG Act proposed in the draft Bill.

2.6. The rating provisions of 97 properties in the Hobart municipal area (2016/2017 rates levied is $1.35M) will be clarified by the changes proposed by the State Government in the draft Bill.

2.7. It is proposed that Council write to the Local Government Association of Tasmania outlining its support of the proposed amendments to the LG Act outlined in the draft Local Government Amendment (Rates) Bill 2017.

2.8. It is expected that if passed by Parliament, the LG Act will be amended prior to Council’s consideration of its budget and rating resolution for 2017/2018.

3. Recommendation

That:

1. The information contained in the report titled ‘Draft Local Government Amendment (Rating) Bill 2017’ be received and noted.

2. The Council write to the Local Government Association of Tasmania outlining its support of the proposed amendments to the Local Government Act 1993 outlined in the draft ‘Local Government Amendment (Rates) Bill 2017’.

4. Background

4.1. As outlined in a memorandum to the Finance Committee meeting of 16 August 2016, Tasmanian Councils have traditionally levied general rates on marine facilities such as boatsheds, slipways and jetties and commercial operations such as fish factories with Public Reserve Classification, which are on or adjacent to crown land based on long standing valuation and property identification data from the Office of the Valuer-General.

4.2. Tasmanian Councils have done so on the belief that the rating exemptions provided for under the Local Government Act 1993 (LG Act) supported the intentions of the 2003 financial reform agreement between State and Local Government. Under this agreement, national parks, conservation areas, public parks and roads, bridges and associated infrastructure are exempt from general rates. The intention was not to provide rating exemptions for private or commercial benefit from the use of such land.

4.3. In 2016, the State Government’s Crown Land Services Department formed an opinion based on legal advice that land leased from the Crown that is either a public reserve or a marine facility is exempt from general rates pursuant to sections 87(1)(b)(ix) or Section 87(1)(b)(xiii) of the LG Act respectively.

4.4. As a result, Crown Land Services from mid 2016 started advising licencees / lessees of this land, seeking to renew their licenses, that they may be exempt from general rates and to contact Councils accordingly.

4.5. The Hobart municipal area has 78 properties with a property type of marina, slipway, jetty or boatshed mainly in the Cornelian Bay, Battery Point and Sandy Bay areas and a further 19 properties similarly classified. Most of these properties pay full rates, except those that receive a remission of the waste management service charge and landfill rehabilitation service charge where the service can’t be provided.

4.6. From August 2016, the City of Hobart started to receive applications and enquiries from a number of these ratepayers regarding a general rate exemption on these grounds.

4.7. In mid 2016, the Local Government Association of Tasmania (LGAT) approached the State Government seeking clarity of the State Government’s policy intention in respect to the rating of marine facilities and land leased from the Crown.

4.8. The Department of Premier and Cabinet’s Local Government Division has prepared a draft ‘Local Government Amendment (Rates) Bill 2017’. The purpose of which is to amend the LG Act to provide clarity and consistency for Councils in the application of rating provisions for marine facilities and reserve Crown land in the LG Act.

4.9. The draft ‘Local Government Amendment (Rates) Bill 2017’ (draft Bill) was released by DPAC for stakeholder consultation on 24 January 2017. The State Government has written to LGAT inviting a formal response to the changes to the LG Act proposed in the draft Bill – refer Attachment A.

4.10. LGAT intends to prepare a sector response and has invited member councils to provide input by 27 February 2017.

4.11. There are five major changes to the LG Act proposed in the draft Bill. There are also a number of minor amendments that relate to definitions or clarifications that have arisen in the course of drafting the Bill or help with interpretation of the Bill.

4.12. In summary proposed changes to the LG Act are as follows:

4.12.1. Expand the definition of municipal areas within section 16 to allow rating of land or structures that are adjoining municipal areas but are outside the municipal area;

4.12.2. Clarify the application of section 87(1)(b) of the LG Act as it applies to Crown land leases and licences;

4.12.3. Expand the exemptions under Section 87(1)(b) to include marine farms as granted under Part 4 of the Marine Farming Planning Act 1995 and unallocated seabed Crown land;

4.12.4. Amend section 120 of the LG Act to clarify liability to pay rates; and

4.12.5. Add a new clause to validate the previous rating resolutions of local government.

Expand the Definition of Municipal Area

4.13. Section 16 of the LG Act provides that a municipal area is an area specified in Column 1 of Schedule 3 of the LG Act, and includes any accretion from the sea adjoining it, and any part of the sea shore to the low water mark adjoining it.

4.14. Throughout the State, there are parcels of currently valued land where a portion of the development extends outside the municipal boundary (although a logical extension of the parcel of land).

4.15. The High Court decision of Coverdale v West Coast Council [2016] HCA 15 clarified that the Valuer-General has a duty to value Crown land only within a municipal area, meaning that any portion outside the defined boundary will no longer be valued and therefore not rateable.

4.16. The draft Bill proposes to extend the definition of municipal area within Section 16 of the LG Act to include “any bridge, jetty, wharf, boathouse, or other structure, that is situated partly within a municipal area and partly on or over an area of the seabed that is adjacent to the municipal area”.

4.17. This definition is similar to the definition of municipal area within Section 7 of the Land Use Planning and Approvals Act 1993.

4.18. This amendment will ensure that any structures or land that adjoins but is technically outside the municipal area as set out in the Central Plan Register is able to be valued and therefore rated.

Clarification of Section 87

4.19. Currently there is inconsistency in the application of Section 87(1)(b) of the LG Act in relation to reserve Crown land that is used by private or commercial lease or licence holders.

4.20. For example, currently a business that is located on non-reserve Crown land is subject to rates, whilst a business located nearby on reserve Crown land may not be subject to rates. While both businesses have access to the services provided by the relevant Council, only one bears the rating burden of supporting the provision of those services.

4.21. The proposed amendments seek to clarify the application of the exemption and provide local government with the capacity to apply rates equitably to property that meets the ‘relevant right to occupation’ criteria.

4.22. The proposed amendments are not intended to apply to all licences over reserve Crown land, rather to apply to agreements that confer the lease or licence holder the right to “exclusive occupation” of the land.

Expansion of Exemption from Rates

4.23. The High Court decision of Coverdale v West Coast Council [2016] HCA 15 raised deficiencies within the relevant legislation that contradicted the policy intent of the State Government.

4.24. As a result, in order to implement the policy intent in relation to the application of rates to certain land, the proposed amendments provide an exemption from general rates to marine farm leases that are issued under the Marine Farming Planning Act 1995 located on Crown seabed within municipal areas.

4.25. In addition, the proposed amendments provide an exemption from general rates to unallocated seabed Crown land.

5. Proposal and Implementation

5.1. It is proposed that Council write to LGAT outlining its support of the proposed amendments to the LG Act.

5.2. The Council has traditionally levied general rates on marine facilities in the municipal area which are on or adjacent to crown land based on valuation and property identification data from the Office of the Valuer-General. These properties are on the City of Hobart valuation roll.

5.3. Like other Tasmanian Councils, the City has done so on the belief that the rating exemptions provided for under the Local Government Act 1993 (LG Act) supported the intentions of the 2003 financial reform agreement between State and Local Government, which was not to provide rating exemptions for private or commercial benefit from the use of such land.

5.4. The rating provisions of 97 properties in the Hobart municipal area (2016/2017 rates levied is $1.35M) will be clarified by the changes proposed by the State Government in the draft Bill. This is an important issue as it removes doubt regarding the Council’s powers to rate certain land. The amendment to the LG Act proposed will ensure that structures and development beyond the municipal area are included within the municipal area, meaning that it is clear rates can continued to be charged.

5.5. Interestingly, both the Building Act 2000 and the Land Use Planning and Approvals Act 1993 contain the proposed definition of municipal area. As a result Council has planning and enforcement powers over land partially or wholly outside the municipal boundary. It makes sense that Council would also have powers to levy rates in respect of the same land.

5.6. Having clarity in respect of which ratepayer should pay general rates and which should not is also important. It has been Council’s understanding that the exemptions within Section 87 of the LG Act apply where there is a public benefit, rather than circumstances where there is a purely commercial or private benefit. Rates are a form of taxation and ratepayers who receive an exemption from rates are subsidised by other ratepayers who do not receive an exemption. It is therefore important that it is clear which properties should receive a general rate exemption and which should not.

5.7. It is expected that the Bill will go to Cabinet for approval and thereafter be tabled in Parliament for adoption in April 2017. This timeline will enable the LG Act to be changed prior to Council consideration of budgets and rating resolution for 2017/2018.

6. Strategic Planning and Policy Considerations

6.1. The proposed changed to the rating provisions in the LG Act increase legislative clarity and allow Councils to continue to rate properties in accordance with the City of Hobart Rates and Charges Policy.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Nil.

7.2. Impact on Future Years’ Financial Result

7.2.1. Nil.

7.3. Asset Related Implications

7.3.1. Nil

7.4. There are no financial implications for the current or future years arising from this report.

8. Legal, Risk and Legislative Considerations

8.1. The ‘Local Government Amendment (Rates) Bill 2017’ amends the Local Government Act 1993.

8.2. Any uncertainty in relation to rating provisions or powers of Councils to rate certain land in the municipal area increases the risk that council rate notices will be objected to and legal action may arise. Legislative clarity is desired to ensure properties are rated according to the intent of the LG Act.

9. Delegation

9.1. This matter is delegated to the Council.

Lara MacDonell

Group Manager Rates and Procurement

David Spinks

Director Financial Services

Date: 9 February 2017

File Reference: F17/12610; 22-1-8

Attachment a: DPAC Letter to LGAT - Consultation on Draft Amendment (Rates) Bill 2017 ⇩

Item No. 6.3

Agenda (Open Portion)

Finance Committee Meeting

Page 37

15/2/2017

REPORT TITLE: Financial Report as at 31 December 2016

REPORT PROVIDED BY: Manager Finance

Director Financial Services

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to present Council’s Financial Report for the period ending 31 December 2016, and to seek approval for changes to the 2016-2017 Estimates (budget).

2. Report Summary

2.1. The Financial Report for the period ending 31 December 2016 is presented for consideration. It shows that both revenues and expenses are currently favourable when compared to budget, and forecasts the following financial outcomes for 2016/2017:

· An underlying surplus of $3.50M;

· A closing cash balance of around $25M; and

· The achievement of targets set for all of the Council’s eight financial sustainability indicators.

2.2. The Council remains in a strong, sustainable financial position.

3. Recommendation

That the Council approve the changes to the 2016/2017 Estimates listed in tables 4, 5, 7 and 9 of Attachment A, noting that there are no financial impacts to the underlying surplus, and a decrease to the cash balance by $0.63M.

4. Background

4.1. The Financial Report as at 31 December 2016 is provided at Attachment A. The Financial Report provides details of:

· The Council’s financial position as at 31 December 2016;

· The result of operations for the first six months of the 2016-17 financial year;

· Forecasts for 30 June 2017; and

· Progress towards the achievement of the Council’s financial sustainability outcomes.

4.2. In accordance with the Council’s decision on item 9 at its meeting on 20 June 2016, the Council approved the carry-forward of unspent operating grants which resulted in the forecast underlying surplus for 2016-2017 reducing by $0.16M, from $2.48M to $2.32M.

4.3. Council approved further changes to the Estimates as part of the financial report for the period ending 30 September 2016 which resulted in the forecast underlying surplus for 2016-17 improving by $1.18M, from $2.32M to $3.50M.

5. Proposal and Implementation

5.1. The Financial Report seeks to have the 2016-2017 estimates (budget) amended to take account of expected differences from budget at 30 June 2017 (permanent variances).

5.2. It is proposed that the Council approve changes to the 2016-2017 Estimates as set out in tables 4, 5, 7 and 9 of Attachment A.

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 Impact on Current Year Operating Result

7.1.1. The proposed changes to the Estimates will result in net expenditure increasing (and the forecast cash balance decreasing) by $0.63M.

7.1.2. The decrease in the forecast cash balance results from a number of factors, the main one being a decrease in expected capital grants.

7.1.3. The final cash balance may differ from the current forecast for the following reasons:

· Current budget variances which are assumed to be timing variances (and therefore forecasts have not been amended) may prove to be permanent variances,

· Further variances could arise during the remainder of the year, and

· Capital expenditure could be higher or lower than forecast.

7.2. Impact on Current Year Operating Result

7.2.1. The proposed changes to the Estimates have no net impact on the forecast underlying surplus.

7.2.2. Whilst an underlying surplus of $3.5M is currently forecast for 2016-2017, both revenues and expenses are currently favourable when compared to budget. If this position continues, the final result will exceed the current forecast.

7.2.3. The final operating result may differ from the current forecast for the following reasons:

· Current budget variances which are assumed to be timing variances (and therefore forecasts have not been amended) may prove to be permanent variances; and

· Further variances could arise during the remainder of the year.

7.3. Impact on Future Years’ Financial Result

7.3.1. The impact on future years’ underlying results is difficult to estimate reliably because some changes may be ongoing, whilst others may not.

7.4. Asset Related Implications

7.4.1. No significant asset related implications are anticipated.

7.5. Financial Sustainability Indicators

7.5.1. Targets set for all of the Council’s eight financial sustainability indicators are expected to be achieved in 2016-17.

8. Legal, Risk and Legislative Considerations

8.1. Not Applicable.

9. Delegation

9.1. This matter is delegated to the Council.

Peter Jenkins

Manager Finance

David Spinks

Director Financial Services

Date: 10 February 2017

File Reference: F17/11883; 21-1-1

Attachment a: Financial Report Ending December 2016 ⇩

Item No. 6.4

Agenda (Open Portion)

Finance Committee Meeting

Page 66

15/2/2017

REPORT TITLE: Grants and Benefits Listing as at 31 December 2016

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 a listing of the grants and benefits provided by the Council for the period 1 July 2016 to 31 December 2016 as requested by the then Parks and Customer Services Committee.

2. Report Summary

2.1. At its meeting on 12 February 2015, the then Parks and Customer Services Committee requested that a quarterly report be provided for the information of the then Finance and Corporate Services Committee outlining all grants and benefits provided by Council Committees and Council.

2.2. A report is attached being for the period 1 July 2016 to 31 December 2016.

2.3. It is proposed that the Committee note the listing of grants and benefits provided for the period 1 July 2016 to 31 December 2016 and that these are required, pursuant to Section 77 of the Local Government Act 1993 (LG Act), to be included in the annual report of Council.

3. Recommendation

That the Finance Committee receive and note the information contained in the report titled “Grants and Benefits Listing as at 31 December 2016”.

4. Background

4.1. At its meeting on 12 February 2015, the then Parks and Customer Services Committee resolved that:

4.1.1. A quarterly report be provided for the information of the [then] Finance and Corporate Services Committee outlining all grants and benefits approved by Council Committees and Council.

4.2. At its meeting on 19 May 2015, the Finance Committee resolved that:

4.2.1. Details of all grants and benefits provided under Section 77 of the Local Government Act 1993 be listed on the City of Hobart’s website.

4.3. A report outlining the grants and benefits provided for the period 1 July 2016 to 31 December 2016 is attached – refer Attachment A.

4.4. Pursuant to Section 77 of the LG Act, the details of any grant made or benefit provided will be included in the annual report of the Council.

4.5. The listing of grants and benefits marked as Attachment A, has been prepared in accordance with the Council policy titled Grants and Benefits Disclosure – refer Attachment B.

5. Proposal and Implementation

5.1. It is proposed that the Committee note the grants and benefits listing as at 31 December 2016.

5.2. It is also proposed that the Committee note that the grants and benefits listed are required to be included in the annual report of the Council and will be listed on the City of Hobart’s website.

6. Strategic Planning and Policy Considerations

6.1. Grants and benefits are provided to organisations which undertake activities and programs that strongly align with the Council’s Strategic Framework – Hobart 2025, the City of Hobart Capital City Strategic Plan 2015-2025 as well as other relevant City of Hobart strategies.

6.2. The linkage between the City’s grants and benefits provided and the City of Hobart Capital City Strategic Plan 2015-2025 is referenced in Attachment A.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. All grants and benefits provided as at 31 December 2016 were funded from the 2016/2017 budget estimates.

8. Legal, Risk and Legislative Considerations

8.1. The Council provides grants and benefits within the requirements of Section 77 of the LG Act as follows:

Grants and benefits

(1) A council may make a grant or provide a pecuniary benefit or a non-pecuniary benefit that is not a legal entitlement to any person, other than a councillor, for any purpose it considers appropriate.

(1A)       A benefit provided under subsection (1) may include –
(a)     in-kind assistance; and
(b)     fully or partially reduced fees, rates or charges; and
(c)     remission of rates or charges under Part 9 (rates and
        charges)

(2) The details of any grant made or benefit provided are to be included in the annual report of the council.

8.2. Section 72 of the LG Act requires the Council to produce an Annual Report with Section 77 of the LG Act providing an additional requirement where individual particulars of each grant or benefit given by the Council must be recorded in the Annual Report.

8.3. Section 207 of the LG Act provides for the remitting of all or part of any fee or charge paid or payable.

8.4. Section 129 of the LG Act provides for the remitting of rates.

9. Delegation

9.1. This report is provided to the Finance Committee for information.

Lara MacDonell

Group Manager Rates and Procurement

David Spinks

Director Financial Services

Date: 9 February 2017

File Reference: F17/1922; 25-2-1

Attachment a: Grants and Benefits Listing as at 31 December 2016 ⇩

Attachment b: Council Policy - Grants and Benefits Disclosure ⇩

Item No. 6.5

Agenda (Open Portion)

Finance Committee Meeting

Page 78

15/2/2017

Memorandum: Finance Committee

Occupancy Rates - Multi-Storey Car Parks as at
30 September 2016

At the meeting of the Finance and Corporate Services Committee of 20August 2013 (item 13 titled ‘Questions Without Notice’ of the Open Portion of the agenda), Alderman Cocker requested that Aldermen be provided with regular updates on the occupancy rates of the Council multi-storey car parks.

The General Manager advised that Aldermen will be provided with the figures quarterly.

The initial quarterly car park occupation rates report were provided to Aldermen at the meeting of the Finance and Corporate Services Committee of 22October 2013 (item 8 of the Closed Portion of the agenda). The Committee resolved that the report be received and noted. In addition, the Chairman informally requested that future reports include occupancy percentages. Further requests for additional information to be provided in the report have resulted in this current report reflecting the following:

· The occupancy rates and income of each of the three multi-storey car parks for the quarter ending September 2016 compared with the same period in 2015 (Table 1).

· Weekday hourly occupation percentages for each of the three multi-storey car parks for the same period provided at Attachment A.

· Three month overview and table of the income generated by the Trafalgar Car Park through permit and early bird parking for the quarter ending June 2016 (Table 2).

· A quarterly comparison of occupation rates and income generated by the three multi-storey car parks for the past two years is provided at Attachment B.

Summary of results

The overall result across the three multi-storey short term car parks for the three month period ending 30 September 2016 is:

· 0.61% decrease in vehicle usage over the same period in 2015.

· 2.20% increase in income.

· A steady increase in the take up of permanent spaces in the Trafalgar Car Park.

· Parking availability in the multi-storey car parks during peak periods of the day.

Table 1: Car Park usage and income – July to SEPTEMBER 2016

2015	ARGYLE STREET				CENTREPOINT		HOBART CENTRAL
	Cars	Income			Cars	Income	Cars		Income
July	102786	$250,609.10			53418	$151,881.50	30132		$102,923.30
Aug	98350	$256,641.70			51477	$140,515.90	28724		$101,404.40
Sep	95814	$246,528.20			54502	$149,531.20	29173		$100,271.40
Totals	296950	$753,779.00			159397	$441,928.60	88029		$304,599.10

2016	ARGYLE STREET				CENTREPOINT		HOBART CENTRAL
	Cars		Income		Cars	Income	Cars	Income
July	98812		$257,332.10		50784	$163,951.55	30053	$98,977.80
Aug	101355		$233,305.20		50479	$146,081.60	30382	$98,128.00
Sep	99252		$267,842.90		50396	$162,218.30	29520	$105,483.20
Totals	299419		$758,480.20		151659	$472,251.45	89955	$302,589.90

	Argyle Street				Centrepoint		Hobart Central
Car park increase	2469			$4,701.20	-7738	$30,322.85	1926	-$2,009.20
	0.83%			0.62%	-4.85%	6.86%	2.18%	-0.65%
Overall increase	Cars			-3343
	Income			$33,014.85

· Patronage increased in Argyle Street Car Park with total patronage 0.83% more than the same period last year. Income increased by 0.62%, reflecting the increased patronage plus the fee increases that were implemented in July 2015.

· Income was affected during this period by the first 3 hour free promotion and Super Saturday promotion undertaken in August due to the Hobart Rivulet wall collapse and the closure of Myer.

· There was a decrease in vehicle numbers in Centrepoint of 4.85%, which may be attributed to the fact that for the same period twelve months prior the Village Cinema Car Park was closed for a number of months. This car park has now reopened. The three hour free promotion also affected income; however an increase in early bird numbers coupled with fee increases in July 2016 managed to generate a higher return.

· In Hobart Central Car Park, patronage increased by 2.18% while income decreasing by 0.65% this was also due to the three hour free promotion undertaken by Council in August.

Trafalgar Car Park

Parking Operations assumed operational responsibility of the 544 parking space Trafalgar Car Park on 1 July 2013. As at that date, 388 spaces were leased to permit holders. Currently the monthly rental is either $255 or $275 depending on the conditions of their permit.

The goal is to fully occupy the car park with monthly tenants, however in the interim the void between actual and full occupancy is being filled with Early Bird parkers.

As at 30 September 2016, the number of spaces leased to permit holders was 471, with 73 vacant spaces being utilised by Early Bird parking. Saturday income is also increasing, mainly due to Salamanca Market patrons taking advantage of the $6.00 all day parking fee. As at 30 September 2016, following adjustments for outstanding rental payments, the budget for the Trafalgar Car Park showed a favourable variance of $82K.

The income for the period 1July 2016 – 30 September 2016 was split as follows:

Table 2

	Jul-16	Aug-16	Sep-16	Total Income	Budgeted Income
Permits	$100,235	$98,803	$106,039	$305,077	$314,808
Early Bird	$15,167	$18,884	$18,980	$53,031	$ 62,000
Saturday	$ 3,088	$ 2,413	$ 2,674	$ 8,185	$ 8,500
Total	$118,500	$120,100	$366,293	$366,293	$385,308

Car Park Occupancy Rates from July to September 2016

During July, Centrepoint Car Park recorded average occupation rates of 89.50% during the peak period of the day (11.00am – 2.00pm). Argyle Street averaged 85.79% & Hobart Central averaged 92.85% for the same period. Attachment A provides more detail on occupancy rates of the car parks and comparisons of income rates over the last two years.

In the following two month period (1 Aug 2016 – 30 Sep 2016) occupancy rates in all three car parks at the peak period of the day were higher, averaging at or above 92.25%, with Hobart Central averaging at 91.95%.

Hobart Central and Centrepoint car parks both accept “Early Bird” parking. During quieter periods, the car park operators manually adjust the number of Early Birds they accept based on the vehicle usage statistics. The higher percentages of occupation in both of these car parks are reflective of this.

During the three month period, vehicular traffic in Argyle Street Car Park remained constant, with the car park being close to capacity on occasions, but not filling. The average number of vacant spaces available during the peak period of the day was in the vicinity of 125.

Centrepoint and Hobart Central Car Parks both had busy periods during August and September 2016, with both car parks filling but only momentarily. Accordingly, Early Birds were adjusted daily to ensure vacancies remained.

The usage statistics demonstrate that parking capacity remains available even during the busiest periods of the day, which in turn allows for parking availability on-street, thus giving options to parkers when in the City.

REcommendation

That the information contained in the memorandum of the Operations Manager – Car Parks and the Group Manager Parking Operations titled ‘Occupancy Rates - Multi-Storey Car Parks as at 30 September 2016’ of 10 February 2017 be received and noted.

David Fox

Operations Manager - Car Parks

Matt Tyrrell

Matthew Tyrrell

Group Manager Parking Operations

David Spinks

Director Financial Services

Date: 10 February 2017

File Reference: F16/135232; 35-7-1

Attachment a: Average Weekday Occupation Rates ⇩

Attachment b: Comparison of Car Park Occupation Rates and Income Generated for the Last Two Years ⇩

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