Minutes (Open Portion)

Finance and Governance Committee Meeting

Page 2

16/6/2020

Minutes (Open Portion)

Finance and Governance Committee Meeting

Page 18

16/06/2020

DEPUTY LORD MAYOR BURNET

The minutes of the Open Portion of the Finance and Governance Committee meeting held on Tuesday, 18 February 2020, be confirmed as an accurate record.

MOTION CARRIED

VOTING RECORD

6.1      COVID-19 Community Support Package - Rates Relief

SEXTON

That the recommendation contained in the memorandum of the General Manager of 11 June 2020, be adopted, as amended by the insertion of additional sub-clause in respect to Clause 4 to read as follows:

(vi)    Acceptable evidence to support commercial ratepayer hardship include:

·       (*) An application in writing detailing the reasons why the ratepayer is unable to pay the rates and charges when they fall due and payable, including a statutory declaration that all the information provided is true and correct;

·      (*) Assessment by a suitably qualified financial advisor, when the rates remission applied for is above $4,000, demonstrating an inability to both pay rates and to rearrange asset portfolios to facilitate payment; 

·      A statutory declaration from someone who is familiar with the applicant’s circumstances (e.g. a family doctor for health-related evidence, a bank official, insurance policy manager, Government agency, etc.);

·      (*) Commercial lease agreements; 

·      Statement from company accountant;

·      (*) Details of business closure if applicable;

·      Notice of impending legal action; 

·      Bank notice for example, overdraft call or mortgaged property repossession; 

·      (*) Evidence of qualification for government assistance in response to the COVID-19 pandemic crisis if applicable; 

·      (*) Evidence of support being provided to tenants if applicable;

·      (*) Audited or unaudited financial statements (for the current and previous financial year), including the most recent monthly profit and loss and balance sheet information with comparatives;

·      Cash flow statements with comparatives.

Item with (*) are mandatory.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That:   1.    The information contained in the memorandum titled COVID-19 Community Support Package – Rates Relief be received and noted.

2.    The Council reaffirm its decision of 27 April 2020 to provide a rates relief support package including waiving penalties and interest, negotiated payment plans, formal postponements and remissions on application on a case by case basis in accordance with the City’s Financial Hardship Assistance policy.

3.    The Financial Hardship Assistance policy be amended to articulate Council’s specific intent to support the ratepayers of the City of Hobart through the COVID-19 pandemic and the policy be reviewed in six months time.

4.    The policy also specifically address the following:

(i)      The specific impact of Covid-19 on commercial ratepayers acknowledging that the ratepayer for commercial properties is the entity that holds the property.

(ii)     Applications by commercial ratepayer should reflect rental impacts from tenancies due to COVID-19 and the COVID-19 Disease Emergency (Commercial Leases) Act 2020 or as a result of the impact of government policy on profitability, such as closing the borders, imposing restrictions or closures.

(iii)    The applicant would be required to provide clear evidence that the entity who owns the property (the rate paying entity) has experienced financial hardship, and consistent with the COVID-19 Disease Emergency (Commercial Leases) Act 2020 any support provided by Council for landlords as a result of financial hardship of a tenant be passed onto the tenant.

(iv)    While generally residential investment properties are excluded from the policy, applications from ratepayers in financial hardship as a result of tenants not paying rent as a result of Covid-19 will be considered.

(v)     Rate postponements be considered as the first option in assisting ratepayers affected by Covid-19 where rent deferrals have been put in place with commercial tenancies and not rent discounts.  Remissions to be applied for reductions in revenue and profitability that cannot be recaptured.

(vi)    Acceptable evidence to support commercial ratepayer hardship include:

·       (*) An application in writing detailing the reasons why the ratepayer is unable to pay the rates and charges when they fall due and payable, including a statutory declaration that all the information provided is true and correct;

·      (*) Assessment by a suitably qualified financial advisor, when the rates remission applied for is above $4,000, demonstrating an inability to both pay rates and to rearrange asset portfolios to facilitate payment; 

·      A statutory declaration from someone who is familiar with the applicant’s circumstances (e.g. a family doctor for health-related evidence, a bank official, insurance policy manager, Government agency, etc.);

·      (*) Commercial lease agreements; 

·      Statement from company accountant;

·      (*) Details of business closure if applicable;

·      Notice of impending legal action; 

·      Bank notice for example, overdraft call or mortgaged property repossession; 

·      (*) Evidence of qualification for government assistance in response to the COVID-19 pandemic crisis if applicable; 

·      (*) Evidence of support being provided to tenants if applicable;

·      (*) Audited or unaudited financial statements (for the current and previous financial year), including the most recent monthly profit and loss and balance sheet information with comparatives;

·      Cash flow statements with comparatives.

Item with (*) are mandatory.

5.    Should the Council support the above proposed policy amendments, a marked up version of the policy be provided prior to the Council meeting on 22 June 2020.

6.2      Working With Vulnerable People Registration - Elected Members

THOMAS

That the recommendation contained in the memorandum of the General Manager of 30 April 2020, be adopted.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That:   1.    Elected members be provided the opportunity to attain a Working with Vulnerable People (Children) registration.

2.    As a cost related to carrying out the duties of the role as an elected member, the costs associated with the registration will be met from the Elected Member Allowances and Expenses budget function.

3.    The Local Government Association of Tasmania be advised of the resolution, recommending it encourage other Council’s to adopt the initiative.

6.3      Conference Reporting - Local Government Association of Tasmania Elected Member Professional Development Weekend 2020 - 29 February 2020 to 1 March 2020

DEPUTY LORD MAYOR BURNET

That the recommendation contained in the memorandum of the General Manager of 11 June 2020, be adopted.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That the information be received and noted.

6.4      Grants and Benefits Listing as at 31 December 2019

SEXTON

That the recommendation contained in the report of the Manager Finance and City Procurement and the Deputy General Manager of 30 April 2020, be adopted.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That the Finance and Governance Committee receive and note the information contained in the report titled ‘Grants and Benefits Listing as at 31 December 2019’.

6.5      Outstanding Long Term Parking Permit Debts as at
29 February 2020

SEXTON

That the recommendation contained in the memorandum of the Financial Operations Manager and the Deputy General Manager of 30 April 2020, be adopted.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That the information contained in the memorandum of the Manager Finance and the Deputy General Manager of 3 March 2020 titled “Outstanding Long Term Parking Permit Debts as at 29 February 2020” be received and noted.

7.1      Committee Actions - Status Report

DEPUTY LORD MAYOR BURNET

That the information be received and noted.

MOTION CARRIED

VOTING RECORD

8.1      Alderman Behrakis - COVID-19 - Working From Home Analysis

Question:    During this time there has been the need for staff members to work from home. There have also been suggestions by some commentators that this should potentially be extended in the interest of promoting flexibility for our workforce.

                     Has there been any impacts, either positive or negative to the productivity of staff?

                     Is there any way to measure said productivity of workers that are working remotely?

                     If so, what have those metrics shown?

Answer:       The General Manager took the question on notice.

8.2      Alderman Behrakis - Project Phoenix

Question:    In regards to the Council’s “Project Phoenix”:

                     What was the expected or budgeted cost for the project?

What was the realised cost of implementing the project?

What was the expected implementation timeframe for the project?

What was the realised time to implement the project?

                     What KPI’s were set for the project?

How did it perform against these KPI’s?

Answer:       The General Manager took the question on notice.

8.3      Alderman Sexton - COVID-19 Rates Remission  Reporting

Question:    Could the General Manager please advise if it is possible to provide Elected Members with a report in regards to the COVID-19 Rates Remissions granted on a monthly basis?

Answer:       The General Manager advised that it was possible and the request, noted accordingly.

8.4      Councillor Coats - Halls Saddle Project

Question:    Could the General Manager please advise why the Halls Saddle project is appearing on the Capital Works program considering the project is yet to be endorsed by the Council and is listed for consideration at its meeting of 22 June 2020?

Answer:       The General Manager took the question on notice.

8.5      Councillor Ewin - Attendance at Council and Council Committee Meetings Post COVID-19

Question:    Could the General Manager please advise if there is anything to preclude Council and Council Committee meetings from being attended online post COVID-19?

Answer:       The General Manager took the question on notice.

10.      Budget Estimates 2020-21

DEPUTY LORD MAYOR BURNET

That the recommendation contained in the report of the Manager Finance and City Procurement and the Deputy General Manager of 12 June 2020, be adopted, as amended by the insertion of the following clause:

11.     The recommendation provided by the Risk and Audit Panel of 16 June 2020, marked as Attachment A to supplementary item 10 of the Open Finance and Governance Committee Meeting minutes of 16 June 2020, be received and noted.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That:   1.    The expenses, revenues, capital expenditure, and plant and equipment expenditure detailed in the document ‘City of Hobart Budget Estimates 2020-21’ marked as Attachment A to supplementary item 10 of the Open Finance and Governance Committee agenda of 16 June 2020, be approved.

2.    New borrowings of $15M be approved at this time, noting that the City has a borrowing facility of up to $31M.

3.    The Council delegate to the General Manager the power to enter into loan agreements to source the above borrowings on the most favourable terms.

4.    The City of Hobart Rates Resolution 2020-21 be adopted, which includes:

(i)      The General Rate be 6.85 cents in the dollar of assessed annual value (AAV).

(ii)     The following Service Rates be made:

(a)     A Stormwater Removal Service Rate of 0.38 cents in the dollar of AAV; and

(b)     A Fire Service Rate of 1.11 cents in the dollar of AAV.

(iii)    A Waste Management Service Charge be made and varied according to the use or predominant use of land as follows:

(a)     A Service charge of $250 to apply to residential properties;

(b)     A Service charge of $500 to apply to non-residential properties.

(iv)    A Waste Management Service Charge of $60 be made for kerbside food organics garden organics waste collection for all rateable land within the municipal area to which Council supplies or makes available a food organics garden organics waste collection service utilising a food organics garden organics waste collection bin.

(v)     A Landfill Rehabilitation Service Charge be made and varied according to the use or predominant use of land as follows:

(a)     A Service charge of $10 to apply to residential properties;

(b)     A Service charge of $20 to apply to non-residential properties.

(vi)    The rates be subject to the following remissions:

(a)     A remission of 0.81 cents in the dollar on the AAV of any land or building which is within the Fern Tree Volunteer Brigade Rating District as defined by the State Fire Commission.

(b)     A remission of 0.83 cents in the dollar on the AAV of any land or building which is within areas other than Permanent Brigade Rating Districts or the Fern Tree Volunteer Brigade Rating District as defined by the State Fire Commission.

5.    Unspent 2019-20 capital funding be carried-forward into 2020-21, with any necessary adjustments to be made in the September 2020 quarter financial report to Council.

6.    The interest rate on unpaid rates be 6.81% per annum, charged monthly.

7.    The 2020-21 Annual Plan marked as Attachment B to supplementary item 10 of the Open Finance and Governance Committee agenda of 16 June 2020, be adopted.

8.    The Long Term Financial Management plan 2021-41 marked as Attachment C to supplementary item 10 of the Open Finance and Governance Committee agenda of 16 June 2020, be adopted.

9.    The following delegations be approved:

(i)      Pursuant to Section 22 of the Local Government Act 1993, the Council delegate to the General Manager the power to expend monies on Council’s behalf identified as Delegation Classification 1 items in the Council’s Annual Plan 2020-21; and, the Council authorise the General Manager to delegate, pursuant Section 64 of the Local Government Act 1993, to such employees of the Council as he considers appropriate, the power to expend monies on Council’s behalf identified as Delegation Classification 1 items in the Council’s Annual Plan.

(ii)     Pursuant to Section 22 of the Local Government Act 1993, the Council delegate to all the Council Committees the power to expend monies on Council’s behalf identified as Delegation Classification 2 items in the Council’s Annual Plan 2020-21.

10.    The Council note that a mid-year review of the 2020-21 Budget Estimates and Long Term Financial Management Plan 2021-41 will be undertaken.

11.    The recommendation provided by the Risk and Audit Panel of 16 June 2020, marked as Attachment A to this item, be received and noted.

Attachment

a.   Risk and Audit Panel Meeting of 16 June 2020 - Budget Estimates 2020-21 - Recommendation