Agenda of Finance and Governance Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 8

15/5/2018

REPORT TITLE: Outstanding Parking Debt December 31, 2017

REPORT PROVIDED BY: Group Manager Parking Operations

Director Financial Services

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide the Finance and Governance Committee with a progress report relation to the current quantum of outstanding parking debt as at 31 December 2017.

2. Report Summary

2.1. Section 3 of the Council policy, Outstanding Debts – Collecting, Reporting and Writing Off, provides that a report be submitted to the Finance Committee as at 30 June each year, recommending that all ‘No Further Action’ debts that have aged in excess of two (2) years be written off.

2.2. There are 1,795 ‘No Further Action’ fines valued at $110,465.10 issued prior to 1 January 2016 that have been deemed non-collectable.

2.2.1. In accordance with the policy, approval is sought to write these debts off.

3. Recommendation

That in accordance with the Council policy, Outstanding Debts – Collecting, Reporting and Writing Off, approval be given to write off a total of 1,795 unpaid parking meter and traffic fines, valued at $110,465.10 which are over two years old, have a status of ‘No Further Action’, and have been deemed ‘non-collectable’.

4. Background

4.1. Section 3 of the Council policy, Outstanding Debts – Collecting, Reporting and Writing Off provides that:

4.1.1. A report be submitted to the Finance Committee as at 30 June each year, recommending that all ‘No Further Action’ debts that have aged in excess of two (2) years be written off and include:

(i) The quantum (number and value) of the unpaid “no further action” infringements; and

(ii) A brief summary of the actions undertaken to collect the infringements.

4.1.2. A report be submitted to the Finance Committee as at the end of December of each year detailing the total value of all fines outstanding at that time.

5. Proposal and Implementation

5.1. Outstanding parking debt falls into three categories:

5.1.1. Infringements payable directly to the City of Hobart;

5.1.2. Matters referred to the Director, Monetary Penalties Enforcement Service (MPES) for collection since establishment in 2008; and

5.1.3. Fines imposed by the Magistrates Court prior to 2008.

5.2. The total combined debt outstanding to the City is $7,646,256.74.

5.3. The value of all infringements directly payable to the City as at 31 December 2017 is $1,993,978.19. This includes infringements that have been issued within the last 6 months that are currently going through the final notice stage or being pursued by Tasmanian Collection Services.

5.4. There have been 34,998 infringements referred to MPES since their inception in 2008. The value outstanding is $3,787,977.50.

5.5. There is an additional $1,864,301.05 MPES are collecting for persons convicted in the Magistrates Court prior to the introduction of the Monetary Penalties Enforcement Act in 2008. These fines are now a minimum of 8 years old, with a number dating back prior to 1995.

5.6. MPES collected an average of $92,504.67 per month for the six month period to December 2017 on behalf of the City of Hobart.

5.7. For the same period, the City referred 4,548 infringements to MPES with an average value of $116,359.27 per month for collection.

5.8. The City of Hobart pays a fee of $47.70 for each infringement referred to MPES. If a debt is not collected by MPES the fee is not recoverable.

5.9. There are 7,961 infringements that have been determined to be non-collectable. These have been so deemed for a number of reasons. A decision is made based on our data and in conjunction with the recommendation from Tasmanian Collection Services whether it is viable to refer the matter to MPES.

5.10. Of these, 1,795 infringements were issued prior to 1 January 2016 and have a nominal value of $110,465.10. In accordance with Council policy, approval is sought to write these debts off.

5.11. Refer Attachment A for a graphical representation of the outstanding debt and the Debt Write-off components.

Recovery Action

5.12. The recovery of all outstanding parking infringements follows the same pathway. The registered operator’s details are obtained from Transport Tasmania, and a final notice of demand is sent after approximately 21 days from the initial infringement being issued.

5.13. After approximately 60 days, the matter is referred to City’s debt collection contractor Tasmanian Collection Service (TCS) for follow up and collection.

5.14. TCS provide their professional recommendation as to whether further legal action is warranted or whether the debt should be abandoned.

5.15. No earlier than 60 days after referral to TCS, and no later than 6 months after the infringement date, the matter is referred to (MPES) for collection or imposition of enforcement sanctions.

5.16. At any one of these stages the infringement can be deemed uncollectable and the status altered to “No Further Action”.

Debt Collection Performance for the Six Month Period to 31 December 2017

5.17. Refer Attachment B for a table and graphical summary of the performance in the last 6 months.

5.18. In the 6 month period to 31 December, the City issued 56,084 infringements with a face value of $2.6M. Of these:

5.18.1. 74 per cent of infringements (41,403) were paid on demand, generating $2.13M income.

5.18.2. 8 per cent (4,467 Infringements) are currently at Final Notice Stage. Overdue notices have been issued and sent to the registered operator.

5.18.3. 4 per cent (2,152 infringements) have been handed to the collection agency (TCS) for formal collection.

5.18.4. A further 2 per cent (1,097 infringements) have been referred to MPES for collection and/or sanctions.

5.18.5. Less than 1 per cent (256 infringements) issued within the last 6 months have been classified as doubtful debts and listed as No Further Action.

5.18.6. 3 per cent (1,934 infringements) were issued to rental vehicles hired by interstate or international drivers, or vehicles registered in another State or Territory,

5.18.7. Of the 1,407 vehicles registered outside Tasmania, only 228 of these vehicles have more than one infringement issued for the period.

5.18.8. The remaining 9 per cent of issued infringements (other) has not yet reached the debt collection trigger.

5.19. During the 6 month period MPES forwarded payments totalling $555,028.02 collected on the Council’s behalf. This related to collections of both current and past (Magistrate’s Court) debts.

6. Strategic Planning and Policy Considerations

6.1. Section 3 of the Council policy, Outstanding Debts – Collecting, Reporting and Writing Off, provides that a report be submitted to the Finance Committee as at 30 June each year, recommending that all ‘No Further Action’ debts that have aged in excess of two (2) years be written off.

6.2. The report aligns with Strategic Objective 2.1 – A fully assessable and connected city environment within the Capital City Strategic Plan 2015-2025, specifically:

2.1.4 – Implement the parking strategy Parking – A Plan for the
Future 2013.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result.

7.1.1. There is $350,000 per annum set aside in the Parking budget as provision for doubtful debt.

7.1.2. This is fully provisioned against budget function 421.

8. Legal, Risk and Legislative Considerations

8.1. No legal, risk and legislative considerations have been identified.

9. Delegation

9.1. This matter is delegated to the Finance and Governance Committee.

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.

Matt Tyrrell

Matthew Tyrrell

Group Manager Parking Operations

David Spinks

Director Financial Services

Date: 9 May 2018

File Reference: F18/26953; 16/121

Attachment a: Outstanding Parking Debt as at Dec 31, 2017 ⇩

Attachment b: Six Month Snapshot - December 2017 ⇩

Item No. 6.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 16

15/5/2018

CoH_4cm wide

Memorandum: Finance and Governance Committee

Occupancy Rates - Multi-Storey Car Parks

At the meeting of the Finance and Corporate Services Committee on 20 August 2013 (Open agenda, item 13 - Questions Without Notice) Alderman Cocker requested the following:-

“Could Aldermen be provided 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 parks occupation rates report was provided to Aldermen at the meeting of the Finance and Corporate Services Committee on 22October 2013 (item 8 - Closed agenda). The Committee resolved that the report be received and noted. In addition the Chairman informally requested that future reports include occupancy percentages.

This report, for Quarter two (October - December) of the 2017-18 financial year contains:

· The occupancy rates and income of each of the three multi-storey car parks for the quarter ending December 2017, compared with the same period in 2016 (Table 1).

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

· Three month overview of the occupancy rates and income generated by the Trafalgar Car Park through permit and early bird parking (Table 2).

Summary of results

The overall result across the car parks is:

· 1.88% increase in vehicle usage.

· Increase in income of 4.15%.

· Trafalgar car park continues to perform well, being slightly ahead of budget.

table 1

2016	ARGYLE STREET		CENTREPOINT		HOBART CENTRAL
	Cars	Income	Cars	Income	Cars		Income
October	93134	$238,783.50	49966	$154,467.60	28938		$99,295.60
November	97348	$273,015.60	52532	$172,059.90	30248		$110,875.50
December	105299	$277,812.20	59507	$167,446.20	32679		$101,946.00
Totals	295781	$789,611.30	162005	$493,973.70	91865		$312,117.10

2017	ARGYLE STREET		CENTREPOINT		HOBART CENTRAL
	Cars	Income	Cars	Income	Cars	Income
October	103429	$271,208.00	48538	$162,229.00	29181	$95,886.00
November	100708	$294,516.80	52032	$182,650.00	30982	$103,610.00
December	105003	$292,171.30	56548	$168,689.10	33576	$90,971.00
Totals	309140	$857,896.10	157118	$513,568.10	93739	$290,467.00

	Argyle Street		Centrepoint		Hobart Central
Car park increase/decrease	13359	$68,284.80	-4887	$19,594.60	1874	-$21,650.10
	4.51%	5.16%	-3.01%	3.96%	2.03%	-6.93%
Overall increase	Cars	10346
	Income	$66,229.10

· The decrease in Hobart Central revenue was due to a reduction in the number of early bird spaces allocated during the busy Christmas period and a higher number of short stay free parking. This also provided more short term parking availability during December as indicated by the increase in vehicles numbers

· Income increased in Argyle Street car park, which reflects the fee increase, an increase in vehicle usage and longer stays.

· Income increased in Centrepoint car park by 3.96% which is a result of fee increases and a continuation of some early bird parking during the Christmas period, due to short term demand being down on the previous year. The decrease in early bird parking during the Christmas period was not as significant as that of Hobart Central, therefore income was still better than the previous year.

Trafalgar Car Park

Parking Operations assumed operational responsibility of the 544 parking spaces in Trafalgar Car Park on 1 July 2013. As at that date, 388 spaces were leased to permit holders who pay a monthly rental of 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 31 December 2017, the number of spaces leased to permit holders was 478, with 66 vacant spaces being utilised for early bird parking. Saturday income increased due to an increase in Salamanca Market patrons taking advantage of the $6 all day parking fee. As at 31 December 2017, the budget for the Trafalgar Car Park showed a favourable balance.

The income for the period 1 October 2017 – 31 December 2017 was split as follows:

Table 2

	Oct-17	Nov-17	Dec-17	Total Income	Budgeted Income
Permits	$115,841	$113,601	$112,017	$341,459	$324,378
Early Bird	$15,269	$16,016	$14,106	$45,391	$56,000
Saturday	$2,480	$2,452	$5,632	$10,564	$10,000
Total	$133,590	$132,069	$31,755	$397,414	$390,378

Car Park Occupancy Rates Oct – Dec 2017

(See Attachment A)

During October, Centrepoint Car Park recorded average occupation rates of 84.71% during the peak period of the day (11.00am – 2.00pm). Argyle Street averaged 92.51%, and Hobart Central averaged 91.53 % for the same period.

In the following two month period (1 November - 31 December 2017) occupancy rates in all three car parks at the peak period of the day were higher – averaging at or above 90.3 %.

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 not quite filling during the three month period. The average number of vacant spaces available during the peak period of the day was in the vicinity of 102.

Centrepoint and Hobart Central car parks both had busy periods during October, November and December with both car parks filled 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, the Group Manager Parking Operations and the Director Financial Services of 9 August 2017 titled “Occupancy Rates – Multi-Storey Car Parks” 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 May 2018

File Reference: F18/3836

Attachment a: Table of Occupancy Percentages ⇩

Attachment b: Income Graph ⇩

Attachment c: Occupancy Rates Graph ⇩

Item No. 6.5

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 48

15/5/2018

REPORT TITLE: 2018-19 Fees and Charges - Parking Operations

REPORT PROVIDED BY: Group Manager Parking Operations

Director Financial Services

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to present the proposed fees and charges applicable to the Financial Services Division – Parking Enforcement and Off-Street Parking for the 2018-19 financial year.

1.2. Fees and charges are reviewed each year as part of the Council’s annual budget process.

2. Report Summary

2.1. A review of Council’s Parking Operations fees and charges has been undertaken and a total increase of 15.55% for all functions within the Parking Operations area is proposed for 2018-19.

2.2. This higher than normal increase in income is essentially a result of the implementation of the new Integrated Parking System. The new system will improve parking management efficiency through the introduction of new payment methods, greater enforcement capabilities and greater coverage of the city and suburban areas as a result of the introduction of sensor technology.

2.3. The new technology will have a greater operational cost than our existing conventional equipment, this includes credit card fees, licencing and communication fees, however, the expected income gains will more than cover these additional operational fees.

2.4. It is recommended that the attached schedule of fees and charges are endorsed for 2018-19.

3. Recommendation

That the schedule of fees and charges for the 2018-19 financial year, as referenced below and attached to this report, be endorsed for consideration by the Finance and Governance Committee;

1. Parking Enforcement (Attachment A)

2. Off-Street Parking Long Term (Attachment B)

3. Off-Street Parking Short Term (Attachment C)

4. Off-Street Parking Short Term Motor Bikes (Attachment D)

5. Meters and Voucher Machines (Attachment E)

4. Background

4.1. The fees and charges for the 2018-19 financial year have been assessed including methods and timing of payment. Where possible fees and charges are to be paid up-front with additional costs being charged on a cost recovery basis.

4.2. A summary of the proposed fees and charges follows:

Parking General

4.2.1. New fees have been introduced as a result of the purchase of new equipment for the Integrated Parking System. These include replacement costs for damaged sensors and sensor cups (mounting devices), and fees for removal and reinstatement of sensors for the purposes of road works.

4.2.2. Fees for replacement of parking meters have also been included in case of damage as a result of motor vehicle accidents, roadworks or malicious damage as a result of vandalism or attempted theft.

4.2.3. Fee increases have been effected for the use of parking meter hooding permits and annual parking meter exemption permits.

Parking Meter Fines

4.2.4. The penalties for parking meter fines and traffic infringements are set using the State Government penalty unit fees. Penalty unit fees will be increased for the 2018-19 financial year resulting in small increases to penalties charged by Council. The expectation is an average of around $1.00 per fine.

Parking Meter Fees

4.2.5. Parking meter fees will increase in some areas of the city, in particular those areas where the fees have not been reviewed for some time. The fee increase will be effected for some meters in the fringe areas of the city and the following areas:

· Dunn Place

· Condell Place

· Lefroy Street

· Salamanca Place

· Salamanca Square

· Queens Domain

· Regatta Grounds

Car Park Fees

4.2.6. The hourly rate for the 3^rd and 4^th hour in the Argyle Street, Hobart Central, and Centrepoint multi-storey car parks will increase by $1.00 per hour. Early bird parking in Hobart Central, Centrepoint, and Trafalgar Car Parks will increase by $1.00 per day to $13.00.

Long Term Car Park Fees

4.2.7. The monthly rental for spaces in the following car parks will increase by an average of $5.00 per month:

· Trafalgar

· Hobart Central

· Liverpool-Barrack

· Salamanca Square

· Hunter Street (UTAS & Henry Jones)

5. Proposal and Implementation

5.1. It is recommended that the attached schedules of fees and charges be endorsed for the 2018-19 financial year.

5.2. Fees and charges for 2018-19 will become effective as at 1 July 2018.

5.3. Pursuant to section 206 of the Local Government Act 1993, the fees will be included in Council’s fees and charges booklet, which is made available to the community from Council’s website and the Customer Service Centre.

6. Strategic Planning and Policy Considerations

6.1. There are no direct strategic planning implications arising from this report.

6.2. The annual review of fees and charges has been undertaken in accordance with Council’s Pricing Policy and Guidelines.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Not applicable.

7.2. Impact on Future Years’ Financial Result

7.2.1. The review of the fees and charges for Parking Operations has been undertaken and increases for the 2018-19 financial year are expected to be:

FUNCTION AREA	2017-18 BUDGET	2018-19 ESTIMATE	INCREASE / (DECREASE)
Parking Enforcement (includes fine and meter collections)	13,330,247	15,099,100	1,768,853	13.27%
Off-Street Parking Short Term (includes short term motor bikes)	5,912,055	6,664,500	752,445	12.73%
Off-Street Parking Long Term	2,290,016	2,444,277	154,261	6.74%
Meters, Voucher Machines etc (Dunn Place, Condell Place and Queens Domain car parks)	787,000	970,000	183,000	23.25%

7.3. Asset Related Implications

7.3.1. Not applicable.

8. Legal, Risk and Legislative Considerations

8.1. Pursuant to section 205 of the Local Government Act 1993, Council may impose fees and charges for various services.

8.2. Pursuant to section 206 of the LG Act, council is to keep a list of all fees and charged and make the list available for public inspection during ordinary hours of business.

9. Delegation

9.1. This matter is delegated to the Council.

Matt Tyrrell

Matthew Tyrrell

Group Manager Parking Operations

David Spinks

Director Financial Services

Date: 9 May 2018

File Reference: F18/40385

Attachment a: Parking Enforcement ⇩

Attachment b: Off-Street Parking Long Term ⇩

Attachment c: Off-Street Parking Short Term ⇩

Attachment d: Off-Street Parking Short Term Motorbikes ⇩

Attachment e: Meters and Voucher Machines ⇩

Item No. 6.7

Agenda (Open Portion)

Finance and Governance Committee Meeting - 15/5/2018

Page 98

ATTACHMENT a

[Cover Page – to be designed in-house]

Hobart City Council

Rates and Charges Policy

Contents

1. Introduction. 4

2. Relationship between Council’s Strategic Plan, Budget and Rates. 4

2.1 Council’s Vision and Future Directions. 4

2.2 Long-term Financial Management Plan. 6

3. Goal 7

4. Policy Principles. 7

5. Property Valuation Base. 8

6. Rates and Charges. 9

6.1 General Rate. 10

6.2 Stormwater Removal Service Rate. 10

6.3 Fire Service Rate. 11

6.4 Waste Management Service Charge. 11

6.5 Green Waste Service Charge. 11

6.6 Landfill Rehabilitation Service Charge. 12

7. What Programs and Services does Council provide?. 12

8. Rebate of Rates. 14

9. Rates Remissions. 14

9.1 Pensioner Remissions. 14

9.2 Rate Remissions – Service Rates / Charges. 15

10. Payment of Rates. 16

11. Late Payments. 18

11.1 Sale of Land for Non-Payment of Rates. 19

12. Objection Rights. 19

13. More Information. 19

1. Introduction

Rates and charges are an important revenue source for local government, comprising approximately 65% of the City of Hobart’s (Council’s) annual income. In setting its rates and charges Council has the challenge of balancing the need to fund existing services, the continual demand for increased services, the need to maintain and renew essential infrastructure and the desire to keep increases to rates and charges to a minimum.

Council uses the revenue collected from rates and charges to fund the provision of more than 300 programs and services to the community and provide the infrastructure required and expected of a modern, well serviced Capital City.

This documents sets out the City of Hobart policy for setting and collecting rates from its community and meeting the requirements of Part 9 of the Local Government Act 1993 (the Act).

This Rates and Charges policy will explain:

· The relationship between Council’s Strategic Plan, budget and rates;

· Council’s goal in setting its rates and charges;

· The principles Council uses when setting its rates and charges;

· How Council sets its rates and charges for the year;

· What rates and charges are levied in the Hobart municipal area;

· The services that rates and charges fund for the benefit of the community;

· Rates rebates and remissions;

· How and when to pay rates and the consequences of late payments; and

· Ratepayer objection rights.

The City of Hobart Rates and Charges Policy will be reviewed at least every 4 years by 31 August unless a change occurs that requires Council to amend its Rates and Charges Policy under section 86B(4) of the Act.

2. Relationship between Council’s Strategic Plan, Budget and Rates

The Rates and Charges Policy has been prepared within the context of Council’s strategic planning and reporting framework, which is intended to ensure the best possible results by considering issues and pressures that may affect the community and the level of resources available to achieve the priorities and aspirations. In setting its rates Council gives primary consideration to the long-term vision for the city, (developed in conjunction with residents, business, interest groups, key city stakeholders, young people and students from across the city), strategic directions, financial sustainability and the likely impacts on the community.

The Council has worked with the community to establish a 20 year vision for the city and a set of statements that describe what the city will be like if that vision is achieved.

2.1 Council’s Vision and Future Directions

In 2025 Hobart will be a city that: -

· Offers opportunities for all ages and a city for life;

· Is recognised for its natural beauty and quality of environment;

· Is well governed at a regional and community level;

· Achieves good quality development and urban management;

· Is highly accessible through efficient transport options;

· Builds strong and healthy communities through diversity, participation and empathy; and

· Is dynamic, vibrant and culturally expressive.

Offers opportunities for all ages and a city for life

In 2025 Hobart will be a city that provides opportunities for education, employment and fulfilling careers. A city that is able to retain its young people and provide a lifestyle that will encourage all ages to see the city as a desirable location and lifelong home.

Is recognised for its natural beauty and quality of environment

In 2025 Hobart will be a city that respects the natural beauty of Mount Wellington, the Derwent River, the bushland surrounds and waterfront locations. It has worked to enhance the community connection through the protection of views, vistas, access and linkages and the physical environment has been conserved in a manner that will ensure a healthy and attractive city.

Is well governed at a regional and community level

In 2025 Hobart will be a city that works effectively to lead an integrated approach to the planning and development of the metropolitan region. It will create partnerships with governments, the private sector and local communities in achieving significant regional, city and community goals.

Achieves good quality development and urban management

In 2025 Hobart will be a city that remains unique in its own right, protecting its built heritage and history while pursuing quality development, the principles of sustainable cities and the reduction of ecological impacts. It will value access to the waterfront, foreshores, public and open spaces and continues to enjoy the benefits of scale and proximity.

Is highly accessible through efficient transport options

In 2025 Hobart will be a city that maintains its convenience and accessibility through the greater use of transport alternatives and an effective road and travel network.

Improved public transport options, cycle ways and walking tracks linking open spaces for transport and recreation, the availability of adequate parking for commuters and shoppers, the take up of sustainable transport options, the reduction of through traffic and the management of an efficient road network are the result of an integrated approach to transport planning within the city and across the metropolitan region.

Builds strong and healthy communities through diversity, participation and empathy

In 2025 Hobart will be a city that reflects a spirit of community and tolerance. By valuing diversity and encouraging participation by all ages in the life of their community, a friendly and compassionate society will underpin a safe and healthy city.

Is dynamic, vibrant and culturally expressive

In 2025 Hobart will be a city that is a destination of choice and a place for business. Clever thinking and support for creativity will help build a strong economic foundation, and entertainment, arts and cultural activities promote the distinctive character of the city. Lifestyle opportunities and strong communities will ensure a vibrancy and way of life that is Hobart.

The future directions statements and key strategies underpin the vision and provide the basis for five year strategic plans to be implemented through Council’s Annual Plan. Performance is continually monitored and result documented in an annual report to the community. The framework is outlined in the diagram below:

2.2 Long-term Financial Management Plan

Council’s Long-term Financial Management Plan (LTFMP) provides a plan to resource Council’s future directions outlined above and ensure Council’s financial sustainability in the long-term. Council defines financial sustainability as follows:

“A Council’s long-term financial performance and position is sustainable where planned long-term service and infrastructure levels and standards are met without unplanned increases in rates or disruptive cuts to services.”

Financial sustainability is particularly important for local government because councils hold assets worth in the billions of dollars (large relative to their revenue bases), that have lives of in some cases well over 100 years.

Council has $1.4 billion in physical assets, managed through Asset Management Plans, including buildings, parks infrastructure, plant, vehicles and equipment, playground equipment, road infrastructure, stormwater infrastructure and The Doone Kennedy Hobart Aquatic Centre. The expected life of Council’s infrastructure assets varies from 10 years for plant and vehicles to 160 years for buildings. It is important for Council to adequately fund asset management to ensure its assets achieve their full expected service life but can also be renewed without incurring large rates increases in the future.

Council’s LTFMP is used in the preparation of its annual budget and Council’s rates and charges policy is prepared within its context. Information on how rates and charges are calculated is included in section 5 and 6.

3. Goal

Council’s goal in raising rates and charges is to ensure a sufficient revenue base for Council to:

· Continue to provide existing activities, programs and services to the community.

· Provide new or expanded services to the community.

· Ensure a balanced budget and provide a strong financial basis for effective management of expenditure programs to provide for both current and future community requirements.

· Encourage a strong, growing and sustainable local economy with appropriate levels of infrastructure assets and facilities.

· Provide certainty of funding for the provision of infrastructure identified by Council in its Long-term Financial Management Plan and Asset Management Plans.

4. Policy Principles

· In adopting its Rates and Charges Policy and making decisions concerning the making of rates, Council has taken into account the following pursuant to section 86A(1) of the Act:

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

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

Council currently raises revenue for the vast majority of its services through the Assessed Annual Value (AAV) rating system and not through a user pays pricing system. Council’s rating system does not separate those aspects of a particular service that may have a public benefit from those that have a more private benefit such as a kerbside waste collection.

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.

· Council determines rates and charges after due consideration of the following:

· The principles of taxation outlined in section 86A(1) of the Act, outlined above.

· The objectives, strategies and actions outlined in the Council’s Strategic Plan, Annual Plan and Long-term Financial Management Plan.

· Council’s legislative obligations.

· The needs and expectations of the general community.

· The level of the cost of maintaining existing facilities and necessary services.

· The need for additional services and facilities.

In setting its policy on rates and charges, Council has applied the following principles of taxation:

· Equity –by taking into account the different levels of capacity to pay within the local community;

· Benefit – by recognising that Council services benefit the community as a whole.

· Simplicity – by using a rating system that is simple and cost effective to administer.

· Sustainability – by making revenue decisions that support the financial strategies for the delivery of infrastructure and services identified in Council’s Long-term Financial Management Plan and Asset Management Plans.

· Effectiveness / efficiency – by meeting the financial, social, economic and environmental, and other strategic objectives outlined in Council’s Strategic Plan.

· Transparency – by being open in the processes involved in the making of rates and charges.

· Timeliness – by ensuring all ratepayers are given adequate notice of their liability to pay rates and charges.

· Flexibility – by responding where possible to unforseen changes in the economy.

· Compliance – by complying with the requirements and intent of relevant legislation.

5. Property Valuation Base

Under section 89A of the Act Council has the choice of three bases of value of land:

· Land Value – the value of the property excluding all visible improvements such as buildings, structure, fixtures, roads, etc.

· Capital Value - the total value of the property, excluding plant and machinery and includes the land value; or

· Assessed Annual Value (AAV) - the estimated yearly rental value of the property, excluding GST, council rates and land tax, but is not to be less than 4% of the capital value of the property.

Council uses the AAV of a property as a basis for valuing land in the municipal area. While some Tasmanian councils have recently adopted Capital Value as their valuation base, AAV is the most widely used property valuation base in Tasmania and has been used by Council since the 1850s. The AAV method of valuing land reflects the property usage and notional income earning capacity of the property and therefore addresses the equity principle of taxation by determining ratepayers of similar wealth and calculating similar rates and determining that ratepayers of greater wealth pay more rates than ratepayers of lesser wealth. Although expressed in terms of a notional rental value, the AAV has the same effect as an implied return on investment for the property with a minimum level of 4 percent.

Adoption of Valuations

Setting rates based on property values, whether on land value, capital value or the assessed annual value (AAV) as determined by the Valuer-General, is a requirement of the Local Government Act 1993.

Under the Valuation of Land Act 2001 the Valuer-General must determine the land value, capital value and assessed annual value of each property in the Hobart municipal area and provide this information to Council. Council has no role in the process of determining the valuations ascribed to individual properties.

Council adopts the valuations made by the Valuer-General as provided to the Council and uses the valuation of each property as the basis for calculating the rates on that property.

All land within the Hobart municipality is rateable except for land specifically exempt under section 87 of the Act.

Ratepayers are encouraged to contact the Office of the Valuer General if they have any objections in relation to their property valuation.

6. Rates and Charges

Rates and charges are calculated each year during Council’s budget process. The budget process involves Council setting its priorities and expenditure levels to enable the key strategic objectives outlined in Council’s Annual Plan to be implemented.

Through the budget process Council also specifies its capital requirements to renew infrastructure assets, plant and equipment and create new essential infrastructure for the City; as well as the community programs and services it will provide in the next financial year; and how much these will cost.

A Council budget also estimates the revenue to be collected from other sources such as parking fines, Commonwealth and State grants, distributions from Council’s ownership interest in TasWater, rents, interest income and parking and other fees and charges. Using these estimates Council determines the amount of revenue it needs to collect in rates revenue to meets its financial responsibilities for the coming year.

Council uses property values as the basis for calculating how much each property owner pays in rates. Property values are not calculated by Council; they are provided to Council by the Office of the Valuer-General.

After identifying how much it needs to collect in rates and charges, Council calculates the total amount required to fund waste management services, stormwater services, the State Government fire levy and landfill rehabilitation services leaving the balance required from General Rates.

Generally, the rate in the dollar is calculated by dividing the amount of money Council needs to raise to provide programs and services by the total $AAV of all rateable properties in the Hobart municipal area.

The rate in the dollar is then multiplied by the value of a property, using the Assessed Annual Value, to establish the amount to be paid by each property owner.

Example:

The total AAV of rateable properties within the municipality is $600,000,000 and Council needs to collect $44,000,000 in rates. The rate in the dollar is 7.33 cents (44,000,000 ÷ 600,000,000). The annual rates payable on a property with an AAV of 18,800 would be $1,378.04.

Council sets its budget annually to ensure it raises the budgeted amount required. Valuations do not determine the rates income of a Council, and as a result, Councils do not gain windfalls from valuation increases and an increase in property values does not cause a rate rise.

Council has adopted a simple rating structure by having one rate in the dollar for all properties. Council raises its rates and charges through the following:

6.1 General Rate

Pursuant to section 90 of the Act, the General Rate is levied on all rateable properties within the Hobart municipality and provides revenue to fund over 300 Council programs and services, except those related to Council’s stormwater removal services, waste management services, landfill rehabilitation services and the State Government fire levy. More information on the programs and services funded through General Rates is provided in section 7 below.

6.2 Stormwater Removal Service Rate

Pursuant to section 93 of the Act, the Stormwater Removal Service Rate is levied on all rateable properties within the Hobart municipal area. It provides revenue that covers the operation and maintenance of the piped and non-piped stormwater systems and the waterways, which includes major rivulets and a host of minor watercourses.

In addition this revenue funds Council’s flood management activities and provides for the replacement of elements of the stormwater and waterways asset base. This includes the kerb and guttering and underground stormwater pipes along Council’s roads and the general maintenance of Council’s rivulet’s and their tributaries. As such these services have a public and community-wide benefit.

The Stormwater Removal Service Rate also contributes towards stormwater works in all roads, which allows residents to travel along those roads safely during rainfall.

Council also has in place litter traps within stormwater systems and waterways to limit the amount of pollution entering the River Derwent.

6.3 Fire Service Rate

Pursuant to the Fire Services Act 1979, local government acts as a collection agent for this State Government tax, which is paid directly to the State Fire Commission.

Council has no control over the level of the Fire Service Rate. It is required to collect this revenue on behalf of the State Government which is then passed onto the Tasmanian Fire Service.

The State Fire Commission identifies 3 districts for the Hobart municipality, being:

· Fern Tree Volunteer Brigade Rating District;

· Permanent Brigade Rating District; and

· General Land.

There is a different fire service rate for each district, which is achieved through rates remissions.

6.4 Waste Management Service Charge

Pursuant to section 94 of the Act, the Waste Management Service Charge is levied on all rateable properties within the Hobart municipal area.

In addition to the standard kerbside waste and recycling collections, the waste management service charge provides revenue that covers a number of activities with a more general benefit such as solid waste minimisation initiatives and contributions to a range of recycling initiatives, which have a public and community-wide benefit.

In 2010/11 Council introduced a waste management service charge following its decision to move away from AAV based rates for waste management and introduce a flat charge that all properties would pay. Council felt that this would make the waste management service fairer and more equitable across the community.

Non-residential properties pay double the waste management service charge of residential properties reflecting that a standard garbage collection service means:

· In the case of a residential property, 120 litres of solid waste per week; or

· In the case of a non-residential property, 240 litres of solid waste per week.

6.5 Green Waste Service Charge

Pursuant to section 94 of the Act, a Waste Management Service Charge for green waste collection is levied on all rateable properties within the Hobart municipal area to which Council supplies or makes available a green waste collection service utilising a green waste collection bin.

Service is provided to residential properties:

· With three or less tenancies;

· A land area between 400m2 and 4000m2; and

· Located outside Sullivans Cover, the CBD and Fern Tree.

Properties outside the above area are able to Opt-in to the service.

All material collected goes to the McRobies Gully Waste Management Centre for processing into organic products such as mulch and compost.

For more information on the Green Waste collection service visit: https://www.hobartcity.com.au/Residents/Recycling-and-rubbish/Bin-collection/Green-waste-collection

6.6 Landfill Rehabilitation Service Charge

From 1 July 2011 Council introduced a temporary ratepayer levy to fund the rehabilitation of the McRobies Gully Waste Management Centre. The levy appears on the annual rates notice as a Landfill Rehabilitation Service Charge. The temporary landfill rehabilitation service charge was introduced because the McRobies Gully Waste Management Centre was considered to be nearing the end of its life as an active landfill.

The City has a permit to operate the landfill until 2030, at which point it will close and no new permit will be sought to operate a landfill within Hobart. As such the City has a detailed level of certainty on key factors such as how long the landfill has left, how much rehabilitation is required, and how much it will cost to complete the works. The Landfill Rehabilitation Service Charge has been amended to a lower annual amount, collected over a longer timeframe, and will be recovered from the rates commencing 1 July 2018 and ending on 30 June 2027.

Non-residential properties pay double the landfill rehabilitation service charge of residential properties reflecting the different waste collection volumes, being:

· In the case of a residential property, 120 litres of solid waste per week; or

· In the case of a non-residential property, 240 litres of solid waste per week.

Rehabilitation of the landfill involves installing an impervious layer of capping over the landfill and landscaping. These works are required so as to prevent methane and other greenhouse gasses entering into the atmosphere, and to prevent rainwater entering the landfill, and are required by law under the permit issued by the Environment Protection Authority to rehabilitate the landfill upon closure.

The levy will apply until 2027. The revenue received from the levy will be spent solely to rehabilitate the landfill.

7. What Programs and Services does Council provide?

Rates and charges revenue funds more than 300 services for the benefit of the Hobart community. Many of Council’s services, such as stormwater drainage, are largely invisible, but they may prevent flooding in Hobart streets each year.

Services include:

Roads

· Maintenance of roads, footpaths, walkways and cycleways

· Street lighting

· Traffic Policy & Management - road safety, arterial route traffic management & local area traffic management

· Special event traffic and pedestrian management

Parking

· Operation and maintenance of off-street parking

· On-street parking

Planning

· Planning approval process for domestic construction or renovations

Community Initiatives

· The Taste Festival

· City of Hobart floral shows

· Salamanca Market (Incl Busking)

· Hobart Christmas Pageant

· Carols by Candlelight

· Sister City program

· Public Art Program

· Carnegie Gallery

· City of Hobart Art Prize

· Mathers House

· Youth Arts and Recreation Centre

· Civic Duties - Citizenship Day etc.

· Bush Adventures Activities

· Cultural and community events grants program

· Home Energy Audit Kits

· Climate Change actions

Public Health

· School Immunisation Program

· Council Immunisation Clinic

· Availability and maintenance of public toilets and parenting rooms

· Dog registration and livestock permits

· Dealing with complaints about animals, including roaming, barking or dangerous dogs

· Dogs on the Domain Program

· Registration of food businesses and licensing of temporary food stalls

· Food surveillance

· Food handler training

· Immunisation Clinics: Free clinics

· Water treatment

· Air quality

· Noise

Waste Management

· Operation of the McRobies Gully Tip and the Recycling Centre

· Availability and emptying of public rubbish and recycling bins

· Household waste and recycling collection

· Roads & footpaths street cleaning, kerb & gutter crossovers and driveway care

· Graffiti removal

· Compost bins and compost

· Worm farms

· Green waste collection

Parks, Gardens & Bushland Reserves

· Maintenance of parks, reserves and playgrounds

· Removal of trees and clearance of vegetation

· Street tree planting

· Streetscape maintenance

· Fire management

· Weedbuster program

· Bushcare program

· Maintenance of bushland reserves and parks i.e. New Town Rivulet Linear Park, Knocklofty Reserve, Bicentennial Park, The Queens Domain, Waterworks and Ridgeway Reserves, Wellington Park

Sports and Recreation Facilities

· Operation and maintenance of the Doone Kennedy Hobart Aquatic Centre

· Learn to swim program

· The Tasmanian Travel and Information Centre

· Maintenance of sports and recreational facilities and sports grounds

· Hire of venues

8. Rebate of Rates

Under section 87 of the Act Council is required to grant a rebate of the General Rate to specific properties that are owned for specific purposes outlined in the Act.

Applications for the rebate of rates under section 87 of the Act must be made in writing and include appropriate documentation to support the application.

Council’s Policy Rates Exemption – Charitable Purposes is available from Council’s website at: http://www.hobartcity.com.au/Council/Council_Policies

For more information contact Council’s Rates Office on tel: 03 – 6238 2787 or email: rates@hobartcity.com.au.

9. Rates Remissions

9.1 Pensioner Remissions

Pensioners eligible for assistance under the Local Government (Rates and Charges Remission) Act 1991 may receive a rebate as follows, noting that limits apply:

· State Government - 30% (maximum limits apply)

· State Fire Commission - 20% (of the Fire Service Rate)

· Hobart City Council - $10

Pensioners are eligible for a remission if they hold the following cards:

· Centrelink or Department of Veterans' Affairs Pensioner Concession Card

· Centrelink Health Care Card

· Department of Veterans' Affairs 'Gold Card' endorsed with TPI or War Widow

The card holder must be legally responsible for the rates on the property and be their principal place of residence. In the case of joint ownership, at least one of the owners must meet the eligibility criteria. There is a limit of one remission per year per pensioner household.

Pensioners who received a remission last year should receive a remission automatically. Any pensioner who has not previously received a remission must complete an application form and possess a current Pensioner Concession Card (PCC) with a date of grant on or before 1^st July of the current financial year.

An application form is available from the Customer Service Centre, 16 Elizabeth Street, Hobart. It is necessary that current concession cards be presented to Customer Service when submitting an application form.

Eligibility of a pensioner remission is determined by the State Government - Department of Treasury and Finance and not by Council.

Pensioners in receipt of a Commonwealth Seniors card or who are members of the Independent Retirees (that are not already receiving the State Government pensioner remission) are eligible for the $10.00 remission from Council.

9.2 Rate Remissions

· Pursuant to section 129 of the Act, a ratepayer may apply to the Council for remission of all or part of any rates paid or payable or any penalty imposed or interest charged under section 128 of the Act.

· Applications for rates remissions should be made in writing and addressed to the General Manager.

· The General Manager is authorised to grant a rates remission up to the value of $2000. Where the value of the rates remission exceeds $2000 the authority of the Council is required, by absolute majority.

Generally, a property will only receive a remission of the stormwater service rate and / or the waste management service charge in the event that:

· The property does not receive and is not capable of receiving a standard garbage collection service or stormwater service from the Council whatsoever; and

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

The term ‘standard garbage collection service’ means:

· In the case of a residential property, 120 litres of solid waste per week; or

· In the case of a non-residential property, 240 litres of solid waste per week.

This does not affect any remissions the Council may grant as part of setting the General Rate and Service Rates and Charges in any given year.

The criteria for granting a remission of penalty and/or interest charges is based on extenuating circumstances, as follows:

· Penalty was incurred as a result of an error on the part of Council staff such as a receipting error;

· The amount was paid to a past property or using an incorrect property number;

· The ratepayer is able to provide evidence that their payment has gone astray in the post or late payment has otherwise resulted from matters outside their control e.g. a disruption to normal banking service;

· If a new owner receives penalty and / or interest resulting from the Notice of Sale procedure i.e. lateness of issue of sale notice, incorrect postal address or late payment of rates on property settlement.

· Council accepts that there are extraordinary or compassionate grounds for the remission. Examples are:

o Serious illness or accident of ratepayer or family member at the due date;

o Death of immediate family member at the due date; and

o Birth.

· Other extenuating circumstances not outlined above that are considered reasonable by the General Manager.

Requests for penalty and/or interest remissions should meet the following conditions:

· Requests must be made in writing to the General Manager.

· A good payment history which means that over the past 2 years all instalments of rates have been paid on time and payment is made within a short time following the ratepayer becoming aware of the non-payment.

· No previous penalties or interest amounts have been remitted for the two years immediately prior to the application for penalty and/or interest remission.

· The ratepayer attempted to have the amount paid on time and/or extenuating circumstances exist for its non-payment on time.

Each application will be considered on its merits and remission will be granted where it is considered just and equitable to do so.

10. Payment of Rates

Council levies the rates once a year and issues an annual rates notice to all ratepayers. Rates are due for payment on the following dates each year:

· 15 August

· 15 November

· 15 February

· 15 April

Rates can be paid in full by the first instalment due date, by two equal amounts on the first and third instalment due date or paid in four equal amounts on the instalment due dates shown above.

Council does not offer a discount for the early payment of rates or for paying rates in full by the first instalment due date.

Council offers a range of convenient and flexible payment options for the payment of rates, as follows:

Payment in Person

· The rates notice should be presented intact when making a payment at the Customer Service Centre, 16 Elizabeth Street, Hobart between 8.15am and 5.00pm, Monday to Friday.

Telephone

· Telephone payments can be accepted for holders of Visa or MasterCard by calling the payments hotline on 1300 886 745, 24 hours a day, every day.

Internet

· Internet payments can be made by Visa or Mastercard at Council's Payments page. Call your bank, credit union or building society to arrange payment from your cheque or savings account.

BPay

· Bpay payments can be made from a cheque or savings account only. Please refer to your rates notice for your BPay reference number.

Mail

· Cheques or money orders should be made payable to Hobart City Council and posted to 'The General Manager, Hobart City Council, GPO Box 503, Hobart 7001'. Receipts for cheques are subject to due collection of money. Council will not accept post dated cheques.

Australia Post

· Payment is accepted at all Australia Post offices in the state. Payment must be made by the due date and the notice presented intact at time of payment.

Direct Debit

· Payment can be made by direct debit. For further information please contact the Rates Office on 6238 2787, email rates@hobartcity.com.au or complete the Direct Debit Request form and return it to Council.

11. Late Payments

Council will exercise its rate recovery powers under the Act in order to reduce the overall rate burden on ratepayers and to better manage the scarce financial resources of Council. It will be guided by the principles of:

· Responsibility – making clear the obligations of ratepayers to pay rates.

· Transparency – making clear the consequences of failing to pay rates.

· Accountability – ensuring due legal processes are applied to all ratepayers in the recovery process.

· Capacity to pay – negotiating arrangements for payment where appropriate.

· Equity – applying the same treatment for ratepayers with the same circumstances.

Rates are due for payment on the instalment due dates outlined in section 10. Council does not send final reminder notices to those property owners that do not pay their rates by the instalment due date.

Where rates remain unpaid after the instalment due date Council will charge a penalty on unpaid instalments in accordance with section 128(1)(c) of the Act, and thereafter interest will be charged monthly.

The purpose of penalty and interest is to act as a deterrent to ratepayers who might otherwise fail to pay their rates on time, to allow Council to recover the administrative cost of following up unpaid rates and to cover any interest cost the council may meet because it has not received the rates on time.

Any ratepayer who may, or is likely to, experience difficulty with meeting the standard instalments and due dates can contact Council to discuss alternative payment arrangements. Requests should be made in writing. It should be noted that penalty and interest will still be levied in accordance with section 128(1)(c) of the Act under any payment arrangement.

Rates and charges are payable within the period as stated on the rate notice. Should a ratepayer fail to pay within the stipulated period or not enter into an approved arrangement to pay Council may institute the following procedure.

· If rates are not paid, a letter will be sent advising the ratepayer that any arrears will be summonsed unless arrears are paid or a satisfactory arrangement entered into. Council will make every effort to contact ratepayers to collect outstanding rates prior to taking further action.

· In response to approaches by ratepayers who have difficulty in meeting scheduled payments, suitable arrangements for payments will be considered and may be entered into.

· Where rates remain unpaid, a summons for arrears is issued.

· However, if a ratepayer has made satisfactory arrangements with Council to clear rates arrears and has adhered to those arrangements, summons will not be required.

Section 131 of the Act provides that when the Council receives a payment in respect of the rates, the Council applies the money received as follows:

· First – to satisfy any costs awarded in connection with court proceedings

· Second – to satisfy any interest imposed

· Third – to satisfy any penalty imposed

· Fourth – in payment of rates, in chronological order (starting with oldest amount first).

11.1 Sale of Land for Non-Payment of Rates

Section 137 of the Act provides that a Council may sell any property where the rates have been in arrears for three years or more. Council is required to notify the owner of the land of its intention to sell the land, provide the owner with details of the outstanding amounts, and advise the owner of its intention to sell the land if payment of the outstanding amount is not received within one month.

12. Objection Rights

Pursuant to section 123 of the Act a person may object to a rates notice on the following grounds:

· The land specified in the rates notice is exempt from the payment of the rates.

· The amount of the rates is not correctly calculated.

· The basis on which the rates have been calculated does not apply.

· He or she is not liable for payment of the rates specified in the rates notice.

· He or she is not liable to pay the rates for the period specified in the rates notice.

An objection is to be made in writing within 28 days after receipt of the rates notice and lodged with the General Manager.

If a ratepayer has enquiries related to their property valuation or is dissatisfied with a property valuation then an objection may be made to the Office of the Valuer-General (OVG) by contacting.

Office of the Valuer-General
GPO Box 44
Hobart TAS 7001
Phone: 03 6165 4444 (Option 2)

Email: ovg.enquiries@dpipwe.tas.gov.au

13. More Information

For more information on Council rates and charges please contact Council’s Rates Unit on:

Tel: 6238 2787
Tel: 6238 2183
Tel: 6238 2833

Email: rates@hobartcity.com.au

Or visit Council’s website at: https://www.hobartcity.com.au/City-services/Rates

Item No. 6.11

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 181

15/5/2018

REPORT TITLE: 2017-18 Annual Plan - Progress Report
Period Ending 28 February 2018

REPORT PROVIDED BY: Associate Director City Economy, Tourism and Events

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide the Council with an account of the progress against each of the major actions and initiatives within the 2017–18 Annual Plan (refer Attachment A, 2017–18 Annual Plan Progress Report: period ended 28 February 2018).

1.2. The Annual Plan sets out major actions and initiatives for the third year of the Capital City Strategic Plan 2015–2025. Central to the Strategic Plan is the long-term vision for the City representing a shared understanding of what Hobart should be like in 2025.

2. Report Summary

2.1. The Annual Plan is required pursuant to S71 of the Local Government Act 1993.

2.2. The period from 1 July 2017 to 28 February 2018 has seen the commencement of 95 per cent of major actions and initiatives, 74 per cent are underway, 21 per cent completed and 5 percent are not yet started.

2.3. The City continues to progress a number of its major medium-term projects which include the capital works program Transforming Hobart, the implementation of new business systems (Project Phoenix), the visioning exercise to renew the Council’s longitudinal strategy and leading discussions in relation to a Capital City Act and a City Deal for Hobart.

3. Recommendation

That the Council endorse the 2017–18 Annual Plan Progress Report: period ended 28 February 2018, marked as Attachment A to this report.

4. Background

4.1. The Annual Plan is required pursuant to S71 of the Local Government Act 1993 that describes the actions to be undertaken to achieve the objectives of the Strategic Plan.

4.2. The Strategic Plan is a requirement pursuant to S66 of the Local Government Act 1993 and the Local Government (Miscellaneous Amendments) Act 2013. The Council is required to develop a strategic plan every ten years and review at least every four years.

4.3. The Council at its meeting on 9 November 2015 endorsed a new ten year strategic plan titled Capital City Strategic Plan 2015-2025.

4.3.1. The Strategic Plan is due for review November 2019.

4.4. The Council at its meeting on 3 July 2017 adopted the City of Hobart Annual Plan for the 2017–18 year which sets out how the strategic objectives of the ten-year strategic plan will be met.

4.5. Three reports are prepared throughout the financial year providing an account on progress against each of the major actions and initiatives in the Annual Plan. The reporting periods for the 2017–18 Annual Plan are as follows:

4.5.1. Progress Report – period ending 31 October 2017

4.5.2. Progress Report – period ending 28 February 2018

4.5.3. Final Report (Annual Report) – period ending 30 June 2018

4.6. Accordingly, this report is the second report of which details the status of all major actions and initiatives for the period ending 28 February 2018.

Progress

4.7. The first eight months of 2017–18 have seen the commencement of 95 per cent of major actions and initiatives. As illustrated in the following graphs, 74 per cent are underway, 21 per cent completed and
5 per cent are not yet started.

Overview of progress by goal

Overview of progress

Progress in relation to medium-term projects through key actions from the Annual Plan.

4.8. Through the major actions and initiatives within the Annual Plan the City of Hobart continues to progress its medium-term projects which include the capital works program Transforming Hobart, the implementation of new business systems Project Phoenix, the visioning exercise to renew the Council’s longitudinal strategy and leading discussions in relation to a Capital City Act and a City Deal for Hobart.

Transforming Hobart

Preliminary works have commenced for both the shared-use pedestrian bridge over the Tasman Highway joining the Cenotaph to Soldiers’ Memorial Avenue and the all abilities shared access bridge, Brooker Highway.

The integrated parking system is on schedule and due to be completed early 2018.

Construction has commenced in October on the Lenah Valley retail precinct program.

Community consultation has commenced for the New Town retail precinct program. A Project Action Team has been established and concept plans are currently exhibition until mid-April.

The design and documentation phase of the refurbishment of the Doone Kennedy Hobart Aquatic Centre is underway and due for completion in August 2018. The construction phase of the refurbishment is scheduled to commence in November 2018.

Works on the replacement of the playing surface on the Tasmanian Cricket Association (TCA) Ground are now complete.

4.9. The implementation of new business systems Project Phoenix, continues with the new payroll module in user acceptance testing. Configuration of Finance, Property and Rating, Customer Request Management, Planning, Building and Plumbing, Stores and Inventory, Licences and Permits, Animals, and Infringements are on track for implementation in 2018.

4.10. The visioning exercise continued community engagement through wider activities including a survey in the City News, sent to every residence and business in Hobart (with approximately 600 responses), a survey on Your Say Hobart, three pop ups in November 2017 (Salamanca Market, Farm Gate Market, and the Christmas tree lighting) and a workshop with over 50 Hobart primary school students, as part of Children’s Week celebrations.

Organisations, businesses, government bodies and community groups were invited to provide a written submission and stakeholder representatives participated in three 2-hour stakeholder engagement workshops held late January and early February.

A Community Panel, held over two evening and two full-day sessions in February, composed of approximately 50 community members and business people, were tasked with creating a vision statement along with key objectives and recommended strategies.

4.11. The Council continues to advocate for the University of Tasmania’s STEM project to be the centre of a City Deal for Hobart.

A Heads of Agreement for a Hobart City Deal was signed by the Prime Minister and Premier on 16 January.

The Agreement calls to establish a Greater Hobart Act to provide a strategic framework of local councils in the region and the State Government to work together to implement the objectives of the Hobart City Deal.

An Energy Savings Action Plan for 2018–20, with the objective of planning the identification, investigation, scoping and implementation of energy saving initiatives for the City’s operations, was approved by the Council in October.

Completed and underway

Of the total 133 initiatives listed within the 2017–18 Annual Plan, 98 are underway with 28 completed. Comments relating to each action are included in this report as Attachment A (2017–18 Annual Plan Progress Report: period ended 28 February 2018).

Yet to commence

The following initiatives are yet to commence:

4.12. Review and create a new parking strategy that encompasses the introduction of the integrated parking system and the central control system for car parks, with links to the transport strategy as appropriate.

This review is programmed to commence following the installation of the Integrated Parking System.

4.13. Complete first stage design and commence reconstruction of Carlton Street, New Town.

Project has been deferred to 2019–20. Design will commence in
2018–19.

4.14. Complete a stormwater plan for the urban portions of the New Town Rivulet catchment.

Awaiting finalisation of New Town Rivulet Flood Study Report.

4.15. Implement the revised Guidelines for the Control of Legionella and the revised Recreational Water Quality Guidelines.

The Health Protection branch of the Department of Health and Human Services has revised the issue date and advised it is unlikely that the new Guidelines will be released this financial year.

4.16. Scope the planning and delivery of a new strategic measurement system to track annual and longitudinal performance.

This project is expected to commence after the completion of the Vision Project as this will inform the City’s longer-term strategic planning.

4.17. Introduce a welcome pack for refugee arrivals to Hobart.

A welcome pack will be developed in 2018.

5. Proposal and Implementation

5.1. It is proposed that the Council endorse the Annual Plan Progress Report for the period ended 28 February 2018.

6. Strategic Planning and Policy Considerations

6.1. The preparation of the report provides an account of the major actions and initiatives identified for the 2017–18 financial year as set out in the Annual Plan.

6.2. The major actions and initiatives progress the City of Hobart in achieving the Goals in the ten year strategic plan.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. The Annual Plan is a companion document to the annual budget estimates. All major actions and initiatives identified within the Plan have budget allocations.

8. Legal, Risk and Legislative Considerations

8.1. The City of Hobart’s Strategic Risk Register addresses the strategic risks associated with the implementation of the Capital City Strategic Plan 2015-2025.

8.2. The successful implementation of the Annual Plan contributes to mitigating these risks.

8.3. The Annual Plan is required pursuant to S71 of the Local Government Act 1993 and sets out how the strategic objectives of the ten year strategic plan will be met during 2017–18. This report provides detail on the progress of the implementation of the major actions and initiatives for the period ended 28 February 2018.

9. Environmental Considerations

9.1. None arise from this report.

10. Social and Customer Considerations

10.1. The preparation of regular progress reports and the Annual Report is an important activity in communicating to the community the many achievements of the Council as well as fulfilling a number of statutory requirements.

11. Marketing and Media

11.1. Refer to 10.1 above.

12. Community and Stakeholder Engagement

12.1. Directors, Executive Officers and responsible officers were consulted in the preparation of this report.

13. Delegation

13.1. This matter is delegated to the Council.

Tim Short

Associate Director City Economy, Tourism and Events

Date: 7 May 2018

File Reference: F18/38502

Attachment a: 2017-18 Annual Plan Progress Report; period ending 28 February 2018 ⇩

Item No. 6.12

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 224

15/5/2018

REPORT TITLE: Draft Vision Document - Hobart: A Community Vision for our Island Capital

REPORT PROVIDED BY: Project and Research Officer

Acting Associate Director Community Development

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to present the draft Hobart City Vision document, Hobart: A community vision for our island capital, to Aldermen for consideration and seek endorsement for the draft vision to be released for broad community engagement (Attachment A).

1.2. Hobart: A community vision for our island capital has been drafted to directly reflect the views and aspirations of the Hobart community and is the result of over 1000 contributions to the project to date. Through the next stages of this project, the wider community will have the opportunity to review and comment on the vision document.

2. Report Summary

2.1. The main period of community engagement for the vision project began in September 2017 and concluded with the Community Panel’s presentation to the Finance and Governance Committee on 14 March 2018.

2.1.1. The engagement involved five major phases:

· Phase 1: Talking to Hobart interviews (September - October 2017; 214 participants)

· Phase 2: City Forum (November 2017; 116 participants)

· Phase 3: Wider engagement (October 2017 - January 2018; 528 survey responses)

· Phase 4: Stakeholder workshops (January - February 2018; 44 attendees)

· Phase 5: Community Panel (February - March 2018; 46 panellists)

2.1.2. The20, the consultants for the engagement and communications aspects of the project, have compiled a full report on engagement findings. A copy of the report has been provided to Aldermen.

2.2. The Community Panel was a group of 46 Hobart community members and businesspeople from across the city.

2.2.1. The majority of panellists were recruited as part of a random stratified sample through the Tasmania-based market research company, EMRS.

2.3. The panel deliberated on the preceding stages of engagement and other inputs to formulate a draft vision.

2.3.1. Their draft framework included an overall vision statement, vision statements on eight focus areas (pillars), and long-term objectives and strategies for each pillar.

2.4. The panellists’ draft framework was considered and edited by Council officers, to ensure the key themes from the previous stages of engagement were included in the document. Panellists then had the opportunity to comment on the edits to their draft.

2.4.1. The draft vision to go out to wider engagement comprises the combination of the panellists’ work, City of Hobart officers’ edits and panellist feedback on those edits.

3. Recommendation

That:

1. The Council receive and note the draft Hobart: A community vision for our island capital document and it be endorsed for release for broad community engagement for the period of a month until mid-June 2018.

2. A further report be provided detailing the outcome of the community engagement, and the final document for approval.

4. Background

4.1. Aldermen may recall that two research projects helped to inform the Council decision to create a new, community-led vision document to guide the City’s strategic planning.

4.1.1. A preliminary report evaluated changes that had occurred in Hobart since the first vision document was created in 2006. The report was used to help inform the decision to update or create a new vision.

4.1.2. A second report evaluated global trends in city visioning and long-range strategies, including document structures, content, and community engagement methods, and related initiatives. The report reviewed examples from over 60 cities in 37 countries.

4.1.3. The Governance Committee received a presentation on that report, along with specific recommendations as to means of undertaking the project to create a new vision. On 6 March 2017, the Council decided inter alia:

“That: 1. The Council reaffirm its commitment to creating a new vision or long-range strategy for the City of Hobart.

2. The process to create a new vision commence in early 2017.

3. The process to create the new vision involve broad-scale community engagement, including:

(i) Both online and offline methods, including web and social media presence and a range of in-person interactions.

(ii) Incorporating techniques of relevance to long-range strategy, such as strategic foresight, systems thinking, and participatory democracy.

(iii) Building vision-specific partnerships with key stakeholders, such as the University of Tasmania and metropolitan local government entities.

(iv) Wherever practicable, entering into direct dialogue with leading cities in relation to the development and measurement of individual and aspirational visions, to assist the process.

4. The process to create the new vision involve comprehensive pre-engagement planning, including:

(i) A dedicated communications strategy, including provisions for project branding, marketing and messaging.

(ii) A dedicated research and evaluation strategy, including provisions for data collection and analysis.

5. Regular updates be provided to ELT and the Council.”

4.2. The below summary outlines the major stages of community engagement for the vision project, designed and undertaken with consultants under the banner of The20:

4.2.1. Talking to Hobart (September - October 2017)

· 214 direct one-on-one interviews with greater Hobartians who live, work, study, access services and/or play in our city

· a blog (www.onlyinhobart.com.au) with 20 posts revealing the themes that were being heard in our interviews

· the creation of a Hobart Story, a narrative summary of Hobart ‘at its best’, based on interview findings.

4.2.2. City Forum (November 2017)

· a two-day Forum at the City Hall, attended by 116 people from across the Hobart municipal area.

4.2.3. Wider engagement (October 2017 - January 2018)

· a survey in the City News, sent to every residence and business in Hobart, and posted on Your Say Hobart, resulting in over 525 responses

· three pop-ups in November 2017, at Salamanca Market, Farm Gate Market, and the Christmas tree lighting

· a workshop with over 50 Hobart primary school students, as part of Children’s Week 2017 celebrations.

4.2.4. Stakeholder engagement (January - February 2018)

· three 2-hour workshops at the Hobart Town Hall, attended by 44 of the City’s key stakeholders

· written submissions from stakeholders.

4.2.5. Community Panel (February - March 2018)

· a panel composed of 46 community members and businesspeople, who deliberated over these inputs to draft a new vision for the City

· the majority of panel members were recruited as part of a random stratified sample through the market research company, EMRS

· to ensure panel diversity, targeted recruitment through existing networks was undertaken to ensure representation from multicultural communities, the Tasmanian Aboriginal Community and young people

· first priority demographic criteria for panellist selection, those with specific targets as an overall proportion of the panel, were:

· second priority criteria, those where the aim was to achieve a broad spread across the group, were:

· details on the composition of the panel are available in the final report from The20, a copy of which has been provided to the Aldermen.

4.3. To date, over 1000 contributions have helped create Hobart: A community vision for our island capital.

4.3.1. Based on the preparatory research that informed the project design, there is no Australian capital city that has undertaken such an in-depth work with community members to understand their articulation of and connection to sense of place in their city.

4.3.2. This understanding has been further borne out by commentary from community members, in particular the Community Panellists, in their feedback on the Council’s approach.

4.4. On 14 March 2018, the Finance and Governance Committee received a presentation from nine members of the Community Panel.

4.4.1. The panellists presented their overall vision statement, as well as the draft vision statements, objectives and strategies for each of eight pillars:

· Community inclusion and participation

· Creativity and culture

· City economies

· Natural environment

· Movement and connectivity

· Land use and development

· Urban design and sense of place

· Governance and civic involvement

4.5. On 19 March 2018, the Council decided inter alia:

“That: 1. The Council receive and note the presentation from Community Panellists, as the core input leading into a subsequent comprehensive project report and draft Hobart City Vision document.

2. The Council convey its sincere thanks to the Panel Members from the Hobart City Vision Project.”

4.6. Following the panellists’ presentation, Council officers reviewed the draft compiled by the Community Panel alongside findings from the previous stages of engagement.

4.6.1. The process to edit the panellists’ draft involved reviewing:

· interview notes from the Talking to Hobart stage

· posts from the Only in Hobart blog

· summary findings from the City Forum

· stakeholder engagement findings

· survey results

· early stage research on key ingredients and some of the compelling vision examples from other cities, for example, from the City of Melbourne.

4.6.2. The draft was then returned to panellists for their review and feedback, using an online platform that allowed users to comment on specific lines of text.

4.6.3. Panellists commented via the platform and by email. Their comments were then considered and factored into edits to the draft.

4.6.4. Once the vision document has been finalised, a new body of work will be undertaken, to integrate the vision through and into the City of Hobart’s strategic planning framework and create a suitable strategic measurement system that will measure performance.

5. Proposal and Implementation

5.1. The draft of Hobart: A community vision for our island capital (provided in Attachment A) is the culmination of the process to date, representing a strong collaboration between the Vision Project Community Panel and the City of Hobart.

5.1.1. The draft is built on the core input created by panellists, expanded to include major findings from the previous stages of engagement that were not highlighted as strongly in the first draft.

5.1.2. It is the version of the document that has been reviewed by panellists, with edits to reflect their feedback and to make the document structure more readable (for example, the addition of section numbers and bullet points).

5.1.3. The City of Hobart project team acknowledges the depth and breadth of contributions from Hobart community members and stakeholders in drafting this document.

5.1.4. This vision is a reflection of the panellists’ deliberations, the wider community’s contributions, and the City of Hobart’s capacity to provide strategic leadership, through weaving together the major themes.

5.2. It is proposed that Aldermen receive and note the draft vision document and that the draft vision document be released for wider engagement.

5.3. The draft timeline for the remainder of the community engagement program is:

· Mid-May to mid-June: Wider engagement via Your Say, an article in the City News, and emails to all those involved in the engagement to date, as well internal staff engagement.

· Late June to 9 July: edits based on wider engagement, as required.

· 17 July and 23 July: final document to the Finance and Governance Committee and to Council for endorsement.

6. Strategic Planning and Policy Considerations

6.1. Creating a new vision document inherently influences the City of Hobart’s strategic planning and policy.

6.1.1. The final version of Hobart: A community vision for our island capital will supersede Hobart 2025: A strategic framework.

6.2. The findings from the engagement could yield information relevant to various strategies across the Council.

6.3. The project to integrate the vision through strategic planning will present a major opportunity for the City of Hobart to interpret and apply the community’s vision for Hobart.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. As the major phase of engagement has concluded, there will be no impact on the current year’s operating result resulting from this proposal.

7.2. Impact on Future Years’ Financial Result

7.2.1. There will be no impact on the future years financial result from this report however, there may be some costs associated with the launch of the new vision which will be included in the report seeking endorsement of the final document.

7.3. Asset Related Implications

7.3.1. None arise from this report.

8. Legal, Risk and Legislative Considerations

8.1. Although there is no legal requirement to adopt a vision (or any of the recommendations from the panel or wider engagement), the draft presents significant opportunities to make legislatively required activities, such as strategic planning, more relevant to community members and stakeholders.

8.2. The engagement approach to date has yielded significant benefits in managing risk, in particular collaborating with Vision Project Community Panel members on the draft, which has helped Council officers to ensure that the Community Panel’s intent has been adequately communicated in the new version.

8.3. The depth and breadth of the engagement has strongly supported understanding of the values and concerns of community members on a range of issues relevant to Hobart life and the work of Council.

9. Environmental Considerations

9.1. Values and aspirations relating to Hobart’s natural environment were one of the strongest findings of the engagement.

9.1.1. These aspects are discussed in the draft vision sections about identity, and under the Natural Environment and other pillars (Attachment A).

10. Social and Customer Considerations

10.1. The draft vision makes strong mention of Hobart communities’ social values.

10.1.1. These aspects are discussed throughout the document, in particular under sections about identity, Community Inclusion, Participation and Belonging, Creativity and Culture, and Governance and Civic Involvement (Attachment A).

11. Marketing and Media

11.1. There are significant marketing and media opportunities related to the release of the draft vision and, in particular, the final vision, once it has been endorsed by the Council.

11.1.1. The document includes a range of themes and statements that were created by community members themselves and are likely to resonate widely.

11.1.2. It is important to note that some aspects of the vision may seem to conflict with some stakeholders’ views on current major issues. Not every community member will find that every aspect of the vision resonates with them. Messaging should be managed accordingly.

11.2. Media activity to date is summarised in the final engagement report compiled by The20.

12. Community and Stakeholder Engagement

12.1. The project to create a new vision has been the result of a large-scale community engagement program.

12.1.1. Several aspects of the engagement were shown to be powerful ways of communicating with community members and stakeholders about their values and aspirations, and about issues facing the city generally.

12.1.2. The Community Panel, in particular, was a powerful means of exchange between Council and community members for enhancing understanding of community needs and the City of Hobart’s areas of work.

12.2. Considerations for the next stages include:

· That all participants in previous stages be advised once the draft is released publicly.

· Engaging with staff across Council, in particular with those who have been directly involved in the project and/or who received presentations from the project team in the early stages of the engagement.

· Ensuring that the wider community has had a chance to view and comment on the draft.

12.3. Submissions received as part of the final round of engagement will be factored into the process of finalising Hobart: A community vision for our island capital.

13. Delegation

13.1. This matter is delegated to the Council.

Marisa McArthur

Project and Research Officer

Kimbra Parker

Acting Associate Director Community Development

Date: 10 May 2018

File Reference: F18/38764; F18/38764

Attachment a: Hobart: A community vision for our island capital ⇩

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.

Division 4 – Camping