Agenda of Finance and Governance Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 8

11/9/2018

Memorandum: Finance and Governance Committee

Outstanding Long Term Parking Permit Debts as at 31 August 2018

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

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

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

· an increase ($7,798) in total debts outstanding;

· an increase ($1,892) in the 90 days and over category; and

· a decrease ($9,720) in debts 30 days and older;

	31-Aug-17	% of total O/S	31-Jul-18	% of total O/S	31-Aug-18	% of total O/S
	$		$		$
Current	-3,233	-6%	56,360	69%	14,286	22%
30 days	60,686	105%	12,183	15%	45,987	70%
60 days	-428	-1%	10,586	13%	2,659	4%
90 days	1,072	2%	2,508	3%	2,964	4%
Total	58,098		81,637		65,896

* 30 days+(all)	61,330	106%	25,277	31%	51,610	78%

Attachment A shows a three year comparison of outstanding long term parking permit debts.

REcommendation

That the information contained in the memorandum of the Manager Finance and Director Financial Services of 3 September 2018 titled “Outstanding Long Term Parking Permit Debts as at 31 August 2018” be received and noted.

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.

Michael Greatbatch

Manager Finance

David Spinks

Director Financial Services

Date: 4 September 2018

File Reference: F18/99097

Attachment a: Three year comparison of outstanding long term parking permit debts ⇩

Item No. 6.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 12

11/9/2018

Memorandum: Finance and Governance Committee

Local Government Act Review - Terms of Reference

Introduction
The purpose of this memorandum is to seek the endorsement of the Council to provide feedback on the Local Government Act Review Terms of Reference.

Background
The Minister for Local Government, the Hon. Peter Gutwein MP, has launched draft terms of reference for a major review of Tasmania’s local government legislation for public comment and feedback.

The draft terms of reference can be found at attachment A.

The State Government has indicated that the review will provide multiple opportunities for formal public consultation, including written and verbal submissions, and public hearings.

As the first stage in the process, the Government will be releasing a public consultation paper on the Review before the end of 2018.

Discussion
This year marks the 25th anniversary of the introduction of the Local Government Act 1993 (the Act). The past quarter of a century has seen unprecedented social, economic and technological change. The role of councils and community expectations have expanded in line with these changes.

The Act has been amended and updated a number of times in recent years in an effort to keep pace in response to a range of emerging issues. A number of provisions have become outmoded or made redundant by more recent advances in telecommunications and digital technologies.

The purpose of the Review is to deliver a contemporary, best-practice legislative framework for the Tasmanian local government sector which:

· Supports greater innovation, flexibility and productivity in the sector, to improve the overall efficiency and effectiveness of the services that councils provide to the Tasmanian community;

· Minimises the red tape and administrative burden on councils, business and the broader community;

· Enhances accountability and transparency across the sector; and

· Increases democratic and community engagement, participation and confidence in local government.

The Review is to consider the following:

· Appropriate legislation to support the transparent setting, levying and collection of council revenue, rates and charges;

· Local government electoral provisions, including options for enhancing both voter and candidate participation in local government elections;

· Provisions that support efficient and high-quality councils operations and service delivery;

· Performance monitoring including financial sustainability, governance and other relevant reporting;

· Council governance and decision-making practices arrangements, including options for community engagement, representation, and democratic participation;

· Provisions that support public confidence in the integrity, transparency and accountability of local government; and

· The roles, functions, powers and operation of statutory bodies that oversee local government compliance and reform.

The Review will not consider:

· Council amalgamations, or consideration of changes to existing municipal boundaries. However, the new legislative framework will need to be flexible enough to deal with potential future structural changes that might occur over the next 20-30 years;

· The roles and functions of mayors, deputy mayors and councillors. These matters were considered in some detail as part of the 2015-2017 Targeted Review process and are considered contemporary for the broad remit and expectations of councils.

· The suite of contemporary council planning and financial management arrangements that were introduced in 2014;

· The local government Code of Conduct framework. The framework was introduced in 2016 and has recently been reviewed to ensure that it is operating as intended.

A letter has been drafted by the General Manager in response to the terms of reference indicating that, given the broad and flexible nature of the review, the Council is content with the draft terms of reference. A copy of the letter can be found at attachment B.

The Council will be able to provide more substantial comments when the State Government releases a public consultation paper on the Review before the end of 2018.

REcommendation

That:

1. That the letter in relation to the Local Government Act 1993 Review Terms of Reference marked as attachment B be endorsed by the Council and sent to the Department of Premier and Cabinet.

N.D Heath

General Manager

Date: 6 September 2018

File Reference: F18/98135

Attachment a: Local Government Act Review Draft Terms of Reference ⇩

Attachment b: Draft letter to DPAC ⇩

Item No. 6.3

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 20

11/9/2018

Memorandum: Finance and Governance Committee

Local Government Amendment (Miscellaneous) Bill 2018 and Local Government (Model Code of Conduct) Amendment Order 2018

The purpose of this report is to consider consultation drafts of the following pieces of legislation:

1. Local Government (Model Code of Conduct) Amendment Order 2018 (“the Order”) (included as Attachment A); and

2. Local Government Amendment (Miscellaneous) Bill 2018 (“the Bill”) (included as Attachment B).

The Local Government Association of Tasmania will be collating a sectoral response to the Bill and Order and comments need to be provided by 20 September.

Attachment C to this report is an explanation table of the amendments proposed by the Bill and the Order.

The Order

The only proposed change of significance is in relation to the materiality test that currently applies to interests under Part 2 of the Code of Conduct. An amendment is proposed which removes the materiality test and replaces it with a ‘reasonable person’ test.

The Council has previously raised concerns with this part of the Model Code and moved a motion proposing the removal of the materiality test at the LGAT general meeting (which was ultimately lost 7-46).

It is considered that the proposed changes to the Model Code do not address the Council’s concerns. While the proposed change to a ‘reasonable person’ test brings Part 2 in line with other parts of the Code, it still places an Alderman in the invidious position of having to make a judgment call as to whether they ought to remain in the room during the debate of an item in which they have a non-pecuniary interest. This exposes Aldermen in that situation to the risk of a complaint under the Aldermanic code of conduct.

It is proposed that feedback be provided to LGAT that this amendment is not supported and that there should be no ‘materiality test’ or a ‘reasonable person’ test included in the code for the reasons above.

The Bill

The Bill makes a number of amendments to the Local Government Act 1993 (“the Act”) in relation to the Code of Conduct provisions. It is generally considered that these are appropriate amendments and enhance the operation of the code of conduct framework and tightens up the requirements around producing evidence and dismissing trivial complaints. There do remain some concerns with the proposed amendments, namely:

Confidentiality

Section 28Z sets out the responsibilities of the General Manager upon receipt of a code of conduct complaint. This provision does not require the General Manager to advise the Alderman who is the subject of the complaint that a complaint has been received. It is considered that this omission ought to be rectified because otherwise the respondent Aldermen to a complaint could be in the position of not being aware of a complaint for some period of time (noting that the General Manager process may take up to 14 days and the Chair of the Code of Conduct Panel has 28 days from receiving the referral to assess the complaint and advise the General Manager and complainant.

Costs

The Bill also provides clarity in respect to who bears the costs associated with training imposed on an Alderman which arises as a result of a determination of a complaint. The Bill imposes the costs of this training on the relevant council rather than the individual Alderman who has been found to have breached the code of conduct. There appears to be a lack of sound policy behind this inclusion as it imposes a financial penalty on the council itself, and ultimately the ratepayers, rather than the individual Alderman who committed the breach. The impecuniousness of the individual Alderman could easily be dealt with through additional amendments.

Transitional Arrangements

The Bill also does not contain any transitional provisions and, as such it is unclear what affect the commencement of the Bill would have on any open code of conduct complaints being dealt with at the time of commencement.

Gifts and Donations (non-Aldermen)

The Bill inserts new provisions regarding the disclosure of gifts and donations by candidates in an election to the General Manager. These provisions mirror those which ordinarily apply to sitting Aldermen.

Whilst the provisions are appropriate, it is not considered appropriate that the responsibility for administering this rests with the General Manager of the Council. The General Manager has no direct relationship to candidates standing and, consistent with previous positions of the Council, it would be more appropriate that this be administered by the Tasmanian Electoral Commission, which is consistent with the Council’s position in relation to the administration of the General Manager’s Roll and other election issues.

The process of disclosing gifts and donations will change under the Bill and would most likely require the Council to provide a ‘live’ version of gifts and donations on its website rather than the current process to upload it following the monthly expenses process.

Other amendments to note

The balance of the proposed amendments are generally dealing with discrete issues and the more pertinent of those are highlighted for the benefit of Aldermen, although it is not proposed that any submission be made regarding these amendments.

Payment of Allowances and Expense

Section 52 of the Act contains a proposed amendment to make it clear than an Alderman can only vote on a matter relating to the payment of allowances or expenses if that relates to all Aldermen at the Council. This amendment may provide clarity for Aldermen when dealing with applications for professional development.

By-Elections

There are some amendments made which deal with the situation where an Alderman or a Council is dismissed. A by-election would not be triggered if an Alderman is suspended or resigns from office while serving that suspension and the casual vacancy provisions in Part 15 of the Act would not apply if all Aldermen are dismissed from a council.

Disclosure of Information

The disclosure of information provisions are tightened up and the power of the Director of Local Government to require disclosure of information is strengthened following recent investigations that have been undertaken.

The Bill proposes an amendment to provide clarity in relation to when a document is to be considered ‘confidential’ and essentially gives the discretion to certain people who may provide a document to determine whether the document is confidential or not.

The improper use of information provisions have been expanded to include a former Alderman, member, member of an audit panel or employee to reflect restrictions in the Corporations Law 2001 for former directors.

It is proposed that the Council make a submission to LGAT in the terms below.

REcommendation

That:

1. The Council make a submission to LGAT in relation to the Local Government Amendment (Miscellaneous) Bill 2018 and the Local Government (Model Code of Conduct) Amendment Order 2018 as follows:

(i) The amendment to remove the ‘materiality’ test from the Model Code of Conduct and replace it with a ‘reasonable person’ test is not supported and that there should be no such test contained in the Model Code of Conduct;

(ii) An amendment to s28Z of the Local Government Act 1993 ought to be made requiring the General Manager to advise a respondent Alderman of the receipt of a code of conduct complaint against them;

(iii) The creation of a new s28ZNA that states that individual councillors do not bear the costs of training under because of a determination by a Code of Conduct Panel is not supported as this cost ought to be borne by the individual councillor;

(iv) That clarity be provided in relation to the effect of the commencement of the Bill on any open code of conduct complaint at the time of commencement; and

(v) The proposed amendments to s56A s56B of the Local Government Act 1993 regarding disclosure of gifts and donations by candidates in an election are not supported as this process ought to be administered by the Tasmanian Electoral Commission and not the General Manager.

N.D Heath

General Manager

Date: 5 September 2018

File Reference: F18/98970; S16-001-02/18

Attachment a: Local Government (Model Code of Conduct) Amendment Order 2018 - consultation draft ⇩

Attachment b: Local Government Amendment (Miscellaneous) Bill 2018 - consultation draft ⇩

Attachment c: Explanation table of amendments ⇩

Item No. 6.4

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 61

11/9/2018

Memorandum: Finance and Governance Committee

TasWater - Special General Meeting

Introduction
The purpose of this report is to request the Council’s consideration of a number of resolutions to be considered at the TasWater Special General Meeting to be held on 27 September 2018.

Background

At its 15 May 2018 meeting, the Council considered a report on TasWater which provided an update on the Memorandum of Understanding (MOU) between the State Government, Chief Representative of the TasWater Owners Group and TasWater and resolved as follows:

That the Council provide in-principle support for the proposed changes to TasWater, subject to it being satisfied with the legislation, any changes to the TasWater Constitution and the TasWater briefing by the Chairman and Chief Executive Officer on 29 May 2018.

As outlined in the report considered by the Council on 15 May the MOU between TasWater and the State Government paves the way for a package of reforms which will enable TasWater customers to benefit from a reduction in forecast price increases, accelerated infrastructure upgrades and a joint focus on major projects of significance to Tasmania.

Under the proposal, the State Government will inject $20 million of equity per year for the next 10 years into TasWater. In return the State Government will become a 10 per cent shareholder of TasWater. The State Government will have a new class of shares which will reflect the State’s decision to not receive any dividends from TasWater.

Owner Councils will retain majority ownership of TasWater, albeit individual Owner Council’s equity entitlements will be marginally reduced as State Government equity injections are received.

New governance arrangements will facilitate State and Local Government working on a collaborative basis.

The Water and Sewerage Corporations Act 2012 is the dominant legislation which applies to this issue and is included with this report.

Enabling legislation titled Water and Sewerage Corporation Amendment (Crown Involvement Facilitation Bill) 2018 has been tabled into Parliament. The purpose of this Bill is to ensure that any decisions made by TasWater’s owners in relation to the proposed resolutions at the upcoming Special General Meeting will be valid.

Discussion
A Special Meeting will be held on 27 September 2018 to allow a vote on the implementation of the MOU with the State Government.

The package of information provided (refer Information Memorandum attachment) includes three proposed resolutions:

Resolution 1 – Adoption of a new Constitution

Subject to:

(i) the Water and Sewerage Legislation (Corporate Governance and Pricing) Bill 2018 passing into law and taking effect in substantially the same terms as set out in Appendix 4, as determined by the Board of the Corporation, having consulted with the Chief Owners’ Representative and the Secretary of the Department of Treasury and Finance for Tasmania; and

(ii) the passing of resolution 2 adopting the Shareholders’ Letter of Expectations in substantially the same form as set out in Appendix 2; and

(iii) the passing of Resolution 3 authorising the Corporation to enter into the Share Subscription and Implementation Agreement with the Crown in substantially the same form as set out in Appendix 3,

to adopt the Constitution in the form as set out in Appendix 1 of the Information Memorandum dated 16 July 2018 to replace the existing Constitution of the Corporation, with effect from the date the Crown first subscribes for shares in the Corporation in accordance with the Share Subscription and Implementation Agreement between the Crown and the Corporation.

Resolution 2 – Adoption of a new Shareholders’ Letter of Expectations

Subject to:

(ii) the passing of resolution 1 adopting the Constitution in substantially the same form as set out in Appendix 1; and

(iii) the passing of resolution 3 authorising the Corporation to enter into the Share Subscription and Implementation Agreement with the Crown in substantially the same form as set out in Appendix 3,

to adopt the Shareholders’ Letter of Expectations in the form as set out in Appendix 2 of the Information Memorandum dated 16 July 2018 to replace the existing Shareholders’ Letter of Expectations, with effect from the date the Crown first subscribes for shares in the Corporation in accordance with the Share Subscription and Implementation Agreement between the Crown and the Corporation.

Resolution 3 – Approval to enter into the Share Subscription and Implementation Agreement, including approval for the issue of shares in the Corporation to the State Government

Subject to:

(ii) the passing of resolution 1 adopting the Constitution in substantially the same form as set out in Appendix 1; and

(iii) the passing of Resolution 2 adopting the Shareholders’ Letter of Expectations in substantially the same form as set out in Appendix 2,

that the Corporation be authorised to enter into the Share Subscription and Implementation Agreement with the Crown in substantially the same form as set out in Appendix 3 of the Information Memorandum dated 16 July 2018, including the issuing of shares in the Corporation to the Crown.

Other key features of the proposal as outlined in the Information Memorandum provided by TasWater include:

Ownership and Governance

· Governance by an independent skills-based Board will continue.

· The State Government will contribute $200 million over 10 years in new equity. For each $20 million contributed the State Government will receive 1 per cent of the voting capital.

· The State Government shareholding will not receive dividends.

· The annual Corporate Plan will be jointly agreed between the Board, Owner Councils and the State Government, with defined arrangements in place in the event of a deadlock.

· The State Government’s representative will sit on the Board Selection Committee and will be consulted – along with the Chief Representative – on the appointment of the CEO. The State Government will not have the right to appoint a director.

· If the State Government does not meet its commitments to make equity injections it will lose its rights in respect of:

o The rights to jointly approve the draft Corporate Plan and to participate in the process to resolve any dispute regarding the adoption or amendment of the Corporate Plan

o Its seat on the Board Selection Committee and

o Its right to be consulted in relation to the appointment of the CEO

These rights will be reinstated on receipt of the overdue equity injection(s). Any decision made by the Board Selection Committee, Owners’ Representatives or the Board during such a period will continue to be valid and to remain effective.

· The State Government’s commitment to contribute equity will be formalised through a Share Subscription and Implementation Agreement between TasWater and the State Government. This Agreement will also reinforce the particular State Government rights referenced above, and the loss of those rights if contributions are not made.

· TasWater’s obligation to maintain price increases within the cap and/or accelerate the capital program (referenced below) may be suspended in the event that unforeseen events arise (eg. significant interest rate and/or inflation increases beyond that reasonably projected) or if the Government does not meet its commitment to maintain equity injections.

Water and Sewerage Pricing

· Prices will be frozen in FY2019/20.

· Annual price increases will not exceed 3.5 per cent from FY2020/21 through FY2024/25.

· The price determination process, via the Independent Tasmanian Economic Regulator (TER) will continue as it does now to review TasWater’s financial performance, including the prices, operational efficiency and investment program necessary to maintain sustainability.

· If the Regulator determines a price increase lower than 3.5 per cent, the Regulator’s price increase will apply.

Infrastructure Investment

· The parties will seek to accelerate the infrastructure investment program by at least one year, with TasWater using best endeavours to achieve capital expenditure over the 10 year period from FY2016/17 through FY2025/26 of $1.8 billion by 30 June 2026.

· The parties will work cooperatively to progress major projects of special economic or environmental importance to Tasmania.

Other Matters

· TasWater’s obligation to pay income tax equivalents and loan guarantee fees to Shareholders will be removed. The $20 million distribution to Owner Councils (indexed from FY2026/27) will be paid as dividends.

· The introduction of a community service obligation mechanism so that investment projects that are not commercial in their entirety can be considered in the context of broader benefits to the State and how these projects might be funded.

· Where the Board determines that, due to circumstances or events beyond TasWater’s reasonable control, it cannot continue to maintain distributions, an accelerated capital program and annual price increases within the 3.5 per cent cap while maintaining the financial sustainability of the business, TasWater will notify the Chief Owners’ Representative and the State Government’s Owner’s Representative. TasWater must meet with the State Government Owner’s Representative to consider the impact of maintaining the accelerated capital program and price caps on the financial sustainability of the business. The State Government may, in its absolute discretion, provide additional financial support or comfort to TasWater in the form of grant funding, a pre-payment of equity, a guarantee or a letter of comfort. If the State Government decides not to provide adequate additional financial support or comfort to TasWater (as determined by the Board), the Board may amend the capital program or increase prices (within the Regulator’s determination).

· The parties will work together to monitor the effectiveness of recent announcements by TasWater on trade waste and to identify and implement any potential improvements.

· The State Government will introduce a bill into Parliament to give effect to the objectives set out in the MOU and to facilitate and support the proposed changes to TasWater’s ownership and governance structure. The proposed changes are not extensive, and the key matters are summarised below:

o Changes to remove the current prohibition on ownership of shares in TasWater by anyone other than a Council – enabling the State Government to become a shareholder in return for its equity contributions.

o Changes to the pricing determination process to clarify that the Tasmanian Economic Regulator can only set maximum prices for regulated services – enabling the Board to elect to pass through lower price increases to customers to meet its commitment to freeze prices in FY2019/20 and to cap subsequent annual price increases until 30 June 2025.

o Changes to remove the current obligations to pay loan guarantee fees and tax equivalents – meaning that ‘distributions’ paid to Owner Councils will be solely in the form of dividends.

Financial Implications

The following key assumptions are common to all scenarios in the 20 year financial model:

· Demand is assumed to grow at 0.7 per cent per annum in PSP3 (to FY2020/21), 0.6 per cent per annum in PSP4 (to FY 2023/24) and 0.3 per cent per annum thereafter.

· The average interest rate in each scenario is held constant at 4.1 per cent per annum through FY2022/23 and increases at 0.1 per cent per annum thereafter.

· Inflation is assumed to be 2.5 per cent per annum.

· Loan guarantee fees are set to zero from 1 January 2019 onward and

· Distributions (paid as dividends) to Owner Councils are set at $20 million per annum through FY2025/26 and are indexed to target tariff increases thereafter.

Financial model inputs and outputs

Two financial scenarios have been modelled, namely a business as usual scenario and an MOU scenario. Key parameters that differentiate the scenarios are shown in the table below:

Both scenarios forecast City of Hobart distributions of $20 million per annum through to FY2026. Both scenarios then index those distributions with the MOU version indexation slightly more but the difference is negligible (by FY2036 it is $26 million versus $25 million).

A risk with both scenarios is that the forecasts may not eventuate.

The Council’s equity share will change. Currently it is 10.39 per cent and is valued at $166 million. This will decrease to 9.35 per cent after ten years of the State Government receiving 1,000,000 shares per year in exchange for its $20 million investment per year, however, the value of the business will increase by $200 million (assuming all other factors do not change). Overall the value of the Council’s investment will not change as a result of the proposal.

The total capital expenditure program over the 20 years is the same for both scenarios, although the MOU version brings forward some capital expenditure forward compared to the business as usual scenario.

The implications of the MOU include:

· Generation of less revenue

· Generation of lower profits

· Higher capital expenditure in FY2023-2026, then lower capital expenditure thereafter (but overall the same as the business as usual situation)

· Requirement of more borrowings (notwithstanding the Government’s $200 million injection) resulting in higher debt gearing. The TasWater Board have stated that these are at manageable levels.

The lower revenue forecasts of the MOU version might have impacts on the valuation of the assets within TasWater. Unlike councils who value their assets based on replacement cost, TasWater values its assets on the cash flows they generate, therefore, if less revenue is generated, the assets are worth less. This would mean that the Council’s proportional share of TasWater (currently 10.39 per cent) would be worth less, meaning a lower figure on the Council’s balance sheet for its investment in TasWater.

The attached Information Memorandum from TasWater provides further information, including:

· Questions and Answers in relation to a range of matters;

· Risks

· Proposed Constitution

· Proposed Shareholders’ Letter of Expectations

· Proposed Share Subscription and Implementation Agreement

· Water and Sewerage Legislation (Corporate Governance and Pricing) Bill 2018

· Water and Sewerage Corporation Act 2012 – Amended Clauses

· Water and Sewerage Industry Act 2008 – Amended Clauses

Conclusion

The Council resolved at its meeting held on 15 May 2018 to provide in principle support for the proposed changes to TasWater, subject to it being satisfied with the legislation, any changes to the TasWater Constitution and the TasWater briefing by the Chairman and Chief Executive Officer on 29 May 2018.

In preparation for a special General Meeting of TasWater, the attached information memorandum has been provided to councils to assist them in their consideration of the MOU between TasWater and the State Government.

The proposal between TasWater and the State Government appears to be the best option available to local government in order to maintain ownership rights and dividend returns from the Water and Sewerage Corporation.

REcommendation

That:

1. The Council instruct its Owner Representative to support the proposed resolutions at the Special General Meeting of TasWater on 27 September 2018, relating to:

i) Adoption of a new Constitution

ii) Adoption of a new Shareholders’ Letter of Expectations

iii) Approval to enter into the Share Subscription and Implementation Agreement, including approval for the issue of shares in the Corporation to the State Government.

2. Following consultation with the General Manager the Council’s Owner Representative be authorised to agree to any consequential amendments to the resolutions provided they do not significantly change the intent of the original resolutions.

N.D Heath

General Manager

Date: 6 September 2018

File Reference: F18/97656

Attachment a: TasWater Supporting Information ⇩

Item No. 6.4

Agenda (Open Portion)

Finance and Governance Committee Meeting - 11/9/2018

Page 69

ATTACHMENT a

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Item No. 6.5

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 216

11/9/2018

Memorandum: Finance and Governance Committee

Council and Committee Meetings - Election Arrangements

The Council Support Unit is currently planning for the forthcoming Local Government election. Polling closes at 10am on 30 October and it is anticipated that certificates of election will be issued by Friday 2 November.

In order to maintain business as usual as best as possible leading into the close of polls and immediately following certificates of election being issued, the following changes to the Council and Committee meeting schedule is proposed.

Monday 22 October – Council meeting proceed as scheduled.

Monday 29 October – City Planning Committee moved to 4pm.

Special Council Meeting held at 5.30pm. Feeding into this meeting will be City Infrastructure Committee (24 October) and City Planning Committee immediately prior at 4pm.

Cancelled – Economic Development and Communications Committee – 31 October

Community, Culture and Events Committee – 7 November

Parks and Recreation Committee – 8 November

Friday 2 November – Certificates of election issued.

Monday 5 November – Ceremonial Special Council meeting – swearing-in of the new Council.

Thursday 8 November – Special Council meeting – determination of committee memberships and representatives on outside bodies.

Monday 12 November – Committees proceed as normal.

The proposed special Council meeting on Monday 5 November is obviously subject to the certificates of election being issued on Friday 2 November.

Attachment A to this report is a calendar showing the proposed meetings.

It is important that newly elected Alderman understand general meeting procedures and protocols and their role as a Planning Authority before attending their first Committee meeting.

The Council Support Unit is developing an induction program, which amongst other things, will address these two key areas. This is proposed to be held across two evening sessions - Wednesday 7 November and Wednesday 14 November – which will be confirmed following the outcome of the election.

REcommendation

That:

1. The Council approve the amendments to the meeting schedule shown in Attachment A to this report.

Paul Jackson

Manager Legal and Governance

Date: 6 September 2018

File Reference: F18/101997

Attachment a: Meeting Schedule Calendar from October to December 2018 ⇩

Item No. 6.7

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 230

11/9/2018

REPORT TITLE: Notice of Motion - Informal Vote

REPORT PROVIDED BY: General Manager

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to respond to a Notice of Motion, adopted by Council at its meeting of 23 July 2018, requesting that a report in relation to addressing low voter participation and the completion of invalid ballot papers in the Hobart municipality.

2. Report Summary

2.1. The last Local Government election continued a trend of low voter participation in the Hobart municipality. 51.70% of Hobart City electors returned their ballot papers in comparison to 54.58% statewide.

2.2. Of the 51.70% number of ballots returned, 7.47% of ballots (for Alderman) were informal.

2.2.1. This was an increased informality rate compared to the 2011 elections when 3.24% were invalid.

2.3. In addition to those on the State House of Assembly roll, anyone who is enrolled on the General Manager’s roll is eligible to vote. Those on both rolls will automatically receive a postal ballot pack.

2.3.1. At the time of preparing this report there were 1587 enrolled on the General Managers Roll (comprising 551 corporate body, 575 non-resident owner and 461 occupiers).

2.4. All postal ballot packs contain voting instructions however with over 7% of ballots returned being informal, awareness of how to vote (i.e numbering 1-12) could be improved as it is unlikely in many cases, given voting is not compulsory, these are intentionally returned as informal votes.

2.5. A number of initiatives have been undertake to-date to improve awareness of the General Manager’s roll and to encourage voter participation, these include;

2.5.1. Utilising the City of Hobart website;

2.5.2. Posts on the City of Hobart social media pages

2.5.3. Advertisements in print media:

2.5.3.1. City News

2.5.3.2. The Mercury

2.5.3.3. The Hobart Observer and;

2.5.3.4. The Hobart magazine.

2.5.4. Further promotion will be undertaken from early October with a focus on ‘how to vote’ and continuing to promote the Tasmanian Electoral Commission’s ‘make your mark’ campaign.

2.6. In addition to printed and social media promotion, the City’s marketing team have also initiated contact with other institutions, like UTas, to discuss how best to engage younger people to vote.

2.7. An indicator for the effectiveness of these promotional activities will be an increase in the return rate of ballots and a decrease in the number of informal votes returned during the 2018 elections.

2.8. The City has also written to Tasmanian Council’s again seeking their support in requesting that the Local Government Association of Tasmania lobby the State Government to review compulsory voting at a local government level.

3. Recommendation

That:

3.1. The Council note the promotional activities undertaken to date regarding the forthcoming local government elections and enrolment on the General Manager’s Roll.

3.2. The City of Hobart continue to promote the ‘make your mark’ campaign through social and print media channels as appropriate, until the close of polls on 30 October 2018.

3.3. The Council note a campaign focused on ‘how to vote’ will commence in early October 2018.

3.4. The success of promotional activities be measured by an increase in the return rate of ballots and a decrease in the number of informal votes returned during the 2018 elections when compared to the 2014 elections and a report be provided at the appropriate time.

4. Background

4.1. At its meeting of 23 July 2018 the Council adopted the following motion:

4.2. The last Local Government election continued a trend of low voter participation in the Hobart municipality. Additionally, many ballot papers were not completed properly, and therefore were counted as informal.

4.3. This motion requests that:

4.3.1. A report be prepared that determines ways to address Hobart’s low rates of voter participation and the high number of informal votes cast particularly for the position of alderman in the 2014 Hobart Council election.

4.3.2. The report determine how best to address both issues-to increase voter participation and to ensure successful completion of ballot papers to make their vote count in the forthcoming 2018 Hobart elections.

4.3.3. That consideration be given to “how to make your vote count” advertising that is specific for Hobart electors, and lobbying both the state government and Tasmanian Electoral Commission to also run an active education campaign to address these and any other anomalies identified.

4.3.4. Consideration also be given to reviewing the process for applying to be included on the General Manager’s Roll, to ensure it is sufficiently robust for people to participate

4.3.5. The report also consider setting targets for attaining more successful participation of eligible voters.

4.3.6. The report consider methods to encourage increased voter participation for the 18 to 35 age demographic.

4.3.7. The Council consult with other Tasmanian Council’s and the State Government with a view to introducing compulsory voting for Local Government elections.

4.4. Councils have a significant impact on the lives of all Tasmanians, enabling the economic, social and cultural development of the community, supporting individuals and groups, and providing a wide range of services for the wellbeing of the community.

4.5. Having high voter participation at local government elections ensures that communities are sufficiently represented by leaders who together work to implement the community’s vision and strategic direction.

4.6. Tasmanian local government elections are not compulsory and are conducted by postal ballot.

4.6.1. The Council has a long standing position that voting should be compulsory however changes to facilitate this have not eventuated to date.

4.6.2. The City has written to Tasmanian Council’s again seeking their support in requesting that the Local Government Association of Tasmania lobby the State Government to review compulsory voting at a local government level.

4.7. In the 2014 local government elections, 37,624 Hobart City electors were enrolled to vote. 95.18% from the State House of Assembly roll and 4.82% from the General Managers roll.

4.8. 51.70% of Hobart City electors returned their ballot papers in comparison to 54.58% statewide.

4.8.1. This was an increase in the return rate compared to the 2011 elections when 49.81% of Hobart City electors returned their ballot papers.

4.9. For an alderman ballot paper to be formal, the elector must record a preference for at least as many candidates as there are aldermen to be elected. For the City of Hobart electors must vote 1-12.

4.10. For Lord Mayor and Deputy Lord Mayor ballots the elector must at least place the number 1 in the box next to the elector’s first preference.

4.11. Of the 51.70% returned in 2014, 1.66% of declarations returned were rejected and 7.47% of ballots were informal.

4.11.1. This was an increase in the informality rate compared to the 2011 elections when 3.24% were invalid. However, in 2011 voters only needed to vote 1-7 for aldermen compared with
1-12 in 2014 when ‘all-in’ ‘all-out’ terms were first introduced.

4.12. All postal ballot packs contain voting instructions however with over 7% of ballots returned being informal, awareness of how to vote (i.e numbering 1-12) could be improved as it is unlikely in many cases, given voting is not compulsory, these are intentionally returned as informal votes.

4.13. The return of informal votes is not exclusive to Hobart City elections. While the responsibility of successfully running the local government elections falls to the Tasmanian Electoral Commission (TEC), the City of Hobart and other Councils can also contribute by building on promotional activities undertaken by the TEC.

4.14. The TEC has been contacted to find out what promotional initiatives they will be undertaking with the aim of increase voter participation and reducing informal vote - i.e. ‘how to vote’. At the time of preparing this report this advice had not yet been received.

4.15. The City is undertaking a number of initiatives to promote the 2018 elections and voter participation, these include;

4.15.1. Promotion on the City of Hobart website, which commenced in June, using the “Make Your Mark” logo provided by the Tasmanian Electoral Commission on the home page. This will remain on the front page of the City of Hobart website until the election.

4.15.2. 31,500 printed copies of the September edition of City News have been distributed to residents and business in the municipal area, which included promotion of the election.

4.15.3. The City has also purchased advertising in a number of other publications focused on creating awareness off the forthcoming elections and registering on the General Manager’s Roll, these include:

4.15.3.1. The Mercury

4.15.3.2. Hobart Observer, and;

4.15.3.3. The Hobart magazine – which has a target audience of young professionals

4.15.4. Promotion on City of Hobart official Facebook page, including sponsored posts has also occurred over recent months.

4.16. Leading into the opening of polls, promotions will focus on ‘making your vote count’, ‘how to vote’, encouraging voter participation etc. using the City’s official Facebook page and encouraging child pages (Bushcare, Doone Kennedy Hobart Aquatic Centre, Youth Art and Recreation – to engage the 18 to 21 demographic) to share or create their own posts, therefore having greater reach.

4.16.1.1. Social media is becoming an increasingly important tool in engaging with the community, particularly new potential voters to the election process and those in the in the 25 - 39 age demographic.

4.17. In addition to printed and social media promotion, the City’s marketing team have also initiated contact with other institutions, like UTas, to discuss how best to engage younger people to vote. UTas has been provided with information and assisted to conduct its own awareness program with its students.

4.18. An indicator for the effectiveness of these promotional activities will be an increase in the return rate of ballots and a decrease in the number of informal votes returned during the 2018 elections.

4.19. It is proposed to provide Aldermen with a copy of the Tasmania Electoral Commission’s 2018 election report following the election.

4.20. In addition to those on the State House of Assembly roll, anyone who is enrolled on the General Manager’s roll is eligible to vote. Those on both rolls will automatically receive a postal ballot pack.

4.21. The General Manager’s Roll enables people that reside in the municipal area, even temporarily, own business or property in the municipal area but don’t live in the municipal area, to vote in local government elections. Eligibility to vote includes;

4.21.1. residents who are not on the State Electoral Roll (for instance non-Australian citizens)

4.21.2. non-resident owners or occupiers of property in the Hobart municipal area

4.21.3. the nominee of a corporate body.

4.22. At the time of preparing this report there were 1587 enrolled on the General Manager’s Roll (comprising 551 corporate body, 575 non-resident owner and 461 occupiers).

4.23. Anecdotally it is known that many people do not understand what the General Manager’s Electoral Roll is and are not aware that they may be entitled to be enrolled on it and therefore have a say in the local government election. This includes businesses in the municipal area.

4.23.1. This lack of understanding is not isolated to the City of Hobart with many other neighbouring councils having significantly lower enrolment numbers in the 2014 local government elections.

4.23.2. This report provides information on activities undertaken to date aimed at increasing awareness of the General Manager’s Roll, primarily through the use of City’s website, purchased advertising and social media.

4.24. As indicated by the memo circulated to Aldermen following the Council meeting of 23 July 2018 (dated 25 July 2018), process improvements have been made to ensure those enrolling on the General Manager’s Roll comply with the eligibly criteria noted at 4.21, particularly in respect to occupiers of property in the Hobart municipal area.

4.25. The General Manager’s Roll has also been audited resulting in some data cleansing being undertaken. As indicated in the memo circulated to Aldermen dated 5 September 2018, auditing and data cleansing will continue until the Roll closes at 6pm on Thursday 13 September 2018, these processes have included but are not limited to;

4.25.1. Writing to every person on the Roll

4.25.2. Checking all Corporate enrolments through a number of means

4.25.3. Verifying ownership of properties

4.25.4. Physical checks of properties where multiple enrolments have been registered.

4.26. As previously advised, eligibility of corporate body and non-resident owners is able to be verified by the City however it is more difficult to verify occupiers of a property in the municipal area. The process improvements indicated above, including the requirement for occupiers to provide utilities bills, letter from the landlord or owner, drivers licence showing the address as verification they reside in the municipal area.

5. Proposal and Implementation

5.1. It is proposed that:

5.1.1. The Council note the promotional activities undertaken to date regarding the forthcoming local government elections and enrolment on the General Manager’s Roll.

5.1.2. The City of Hobart continue to promote the ‘make your mark’ campaign through social and print media channels as appropriate, until close of polls on 30 October 2018.

5.1.3. The Council note a campaign focused on ‘how to vote’ commence in early October 2018 until close of polls on 30 October 2018.

5.1.4. The success of promotional activities be measured by an increase in the return rate of ballots and a decrease in the number of informal votes returned during the 2018 elections when compared to the 2014 elections and report be provided at the appropriate time.

6. Strategic Planning and Policy Considerations

6.1. Promotion of the local government elections and the importance of voting is aligned with Goal 5 – Governance - Leadership provides for informed decision-making for our capital city, of the Capital City Strategic Plan 2105-2025.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Promotional costs associated with the 2018 local government elections will be attributed to the City Marketing function.

7.2. Impact on Future Years’ Financial Result

7.2.1. Nil.

7.3. Asset Related Implications

7.3.1. Nil.

8. Delegation

8.1. Council.

N.D Heath

General Manager

Date: 6 September 2018

File Reference: F18/95941

Item No. 6.9

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 242

11/9/2018

Memorandum: Finance and Governance Committee

Lord Mayor / Deputy Lord Mayor - Current Term Vacancy

At its meeting of 9 April 2018 as part of considering the appointment of an acting Deputy Lord Mayor due to a vacancy in the office of Lord Mayor, the Council resolved that:

a) A report be prepared identifying alternative options for determining the replacement of a permanent vacant position for the Lord Mayor or Deputy Lord Mayor, during a current term of office.

(b) The report also consider options for the election of a Deputy Lord Mayor at the time of a normal local government election.

c) The legislative changes required by such change be addressed.

Findings

All Capital City Councils have been contacted to ascertain the processes followed in the event of current term vacancies of the Lord Mayor or Deputy Lord Mayor.

There are differences between the two roles however in the case of the Lord Mayor all refer to the provisions within their respective Local Government Acts. Both Sydney and Darwin adopt differing processes for the filling of the role of Deputy Lord Mayor. A precis of the responses is show as Attachment A to this report.

Generally all councils use a process of a by-election where the vacancy occurs a certain period of time prior to a general election and inside that period the vacancy is filled from within the council by a resolution of that council.

It is considered that the approach in Tasmania is generally consistent with the approach in other jurisdictions, albeit there are some differences between those jurisdictions.

On the 26^th June 2018 the Minister for Local Government announced a major review into the Local Government Act 1993. This review will provide an opportunity to address a range of issues in relation to the operation of local government in Tasmania and it is proposed that filling a casual vacancy in the office of Lord Mayor, Deputy Lord Mayor and Aldermen be addressed as part of that review. This will form part of the Council’s participation in the review in due course. A discussion paper is expected to be released by the end of the 2018 calendar year.

REcommendation

That:

1. The mechanisms for filling a casual vacancy for the office of Lord Mayor, Deputy Lord Mayor and Aldermen be addressed as part of the review of the Local Government Act 1993.

Paul Jackson

Manager Legal and Governance

Date: 6 September 2018

File Reference: F18/95160; 13-3-1

Attachment a: Precis of mechanism to fill casual vacancies in other jurisdictions ⇩

Item No. 8.2

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 263

11/9/2018

Memorandum: Lord Mayor

Deputy Lord Mayor

Aldermen

Response to Question Without Notice

Engagement with BigHart - Potential Increase of Digital Technology

Meeting: Finance and Governance Committee

Meeting date: 14 August 2018

Raised by: Alderman Ruzicka

Question:

What engagement can be undertaken with BigHart both in Hobart and regionally to reduce digital exclusion caused by poverty?

Response:

Digital inclusion is based on the premise that everyone should be able to make full use of digital technologies - to manage their health and wellbeing, access education and services, organise their finances, and connect with friends, family and the world beyond.

Libraries Tasmania is funded to deliver community access to digital technologies. There are 50 Libraries state wide, and 20 Community Online Access Centres which also provide computers connected to the internet for public access at no charge.

Libraries offer free courses such as using a mobile device; using a computer; computing for seniors; computing for work; one-to-one support; using the internet and email; internet basics; and email basics. Other courses offered include using communication and collaboration tools; online protection; job seeker and filling out forms.

Strong, Liveable Communities: ‘Tasmania’s Active Ageing Plan 2017-2022 is the Tasmanian Government’s commitment to support people to maintain their health, increase their participation, continue to learn, and feel secure as they age.’

This plan states that Tasmanians over the age of 50 have the right to access health care and education opportunities, participate in their community, to feel safe and secure and have their values and preferences respected. It aims to re-shape the way our workplaces, communities and society, view and value older Tasmanians, to reduce barriers to participation and create opportunities.

The Plan identifies four action areas to guide our approach. It builds on previous government policies, and considers the needs of people over 50 in current Tasmanian Government initiatives.

The City of Hobart was successful in gaining a small grant from the State Government to develop a digital Information Hub in the front of Mathers House. The Positive Ageing Information Hub will support access to relevant community and health services, support opportunities for participation in work, education and recreation, promote transport options and support older people to age in place.

Mathers House has been running introductory computer, tablet and smartphone sessions for many years. A dedicated team of volunteers meet with community members one-on-one to develop their confidence and skills in digital literacy. The City of Hobart supports this program through Mathers House and the Volunteer Management System.

The City of Hobart’s Youth Programs also offer support for young people to access technology and training through a range of programs at the Youth Arts and Recreation Centre.

In regards to working collaboratively with BigHart, opportunities are limited to some degree as BigHart is based in the north west of Tasmania and much of its programing has a rural focus. There would however be opportunities for BigHart to engage with the Hobart community, through the application for a Community Grant for a project that would be delivered in Hobart. BigHart have been included in a database of organisations that receive notifications when grant opportunities are available.

Kimbra Parker

Acting Associate Director Community and Culture

Date: 5 September 2018

File Reference: F18/92877; 13-1-10

Item No. 8.5

Agenda (Open Portion)

Finance and Governance Committee Meeting

Page 269

11/9/2018

Memorandum: Lord Mayor

Deputy Lord Mayor

Aldermen

Response to Question Without Notice

ALGA Initiatives

Meeting: Finance and Governance Committee

Meeting date: 14 August 2018

Raised by: Alderman Ruzicka

Question:

What top three out of the twelve ALGA #allpoliticsislocal initiatives does this Council want to concentrate on?

Response:

At the Australian Local Government Association (ALGA) National General Assembly, the ALGA President, Mayor David O’Loughlin spoke about ALGA’s Federal Election Initiatives.

These twelve policy initiatives provide councils with the opportunity to deliver tangible outcomes to communities and include:

· Repair federal funding to local government

· Realise the productive potential of Australia’s freight routes

· Boost safety on local roads

· Promote equitable access to community services

· Protect communities from the impacts of natural disasters

· Support communities with their climate change response

· Promote healthier communities

· Foster Indigenous well-being and prosperity

· Support communities on their digital transformation journey

· Strengthen Australia’s circular economy

· Support local government’s current work in addressing affordable housing and homelessness issues

· Address the South Australian road funding anomaly.

As advised in Alderman Ruzicka’s Local Government Association of Tasmania’s Annual Conference report, ALGA is asking councils to use the #allpoliticsislocal language and identify three of the twelve policy initiatives to use when lobbying Federal Government members.

ALGA will soon begin a national advocacy campaign to advance their priorities for the federal election and the LGAT’s election advocacy will build from the ALGA base.

In the absence of detail and further qualified advice, the initial consideration is that items of particular interest to our community would be:

· Boost safety on local roads

· Promote equitable access to community services

· Protect communities from the impacts of natural disasters

· Support communities with their climate change response

· Promote healthier communities

· Support communities on their digital transformation journey

· Support local government’s current work in addressing affordable housing and homelessness issues.

Once further detail becomes available more information will be provided to the Council.

N.D Heath

General Manager

Date: 6 September 2018

File Reference: F18/93050; 13-1-10

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