Agenda of Council Meeting - Monday, 19 June 2023

Item No. 10

Agenda (Open Portion)

Council Meeting

Page 1

19/6/2023

REPORT TITLE: Budget Estimates 2023-24

REPORT PROVIDED BY: Manager Rates, Procurement and Risk

Chief Financial Officer

Director City Enablers

1. Report Summary

1.1. The purpose of this report is to present the City of Hobart’s 2023‑24 Budget Estimates; 2023-24 Annual Plan; Rates Resolution; and the Long‑Term Financial Management Plan 2023-2033 for formal adoption.

1.2. The purpose of this report is also to present the proposed Fees and Charges for Council for 2023-24 for formal adoption.

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

2. Key Issues

2.1. This report presents the City’s 2023-24 Budget Estimates, 2023-24 Annual Plan and Rates Resolution together with the Long-Term Financial Management Plan 2023-2033 and proposed 2023-24 Fees and Charges.

2.2. The Budget includes funding for initiatives that will underpin the continued transformation of the City establishing a financial basis from which the organisation can develop and continue to be community focussed, innovative and responsive.

2.3. A comprehensive review of the City’s Rating and Valuation Strategy will be undertaken during 2023-24 to review how rates are levied and applied. Community consultation will form part of this broader review.

2.4. The proposed rating strategy for 2023-24 is, therefore, an interim rating strategy designed to continue to manage the disparity in the distribution of rate collections arising from the 2021 municipal revaluations. It also addresses Council’s decision at its meeting on 1 August 2022 regarding differential rating for properties used for short stay visitor accommodation and vacant – residential land to ensure housing stock is retained and to stimulate residential development. The changes have been reflected in an amended version of the City of Hobart Rates and Charges Policy.

2.5. The City’s Risk and Audit Panel met on 7 June 2023 and a summary of the Panel’s advice to Council in respect of the budget estimates is included in this report.

2.6. It is proposed that the 2023-24 Budget Estimates; 2023-24 Annual Plan; Long‑Term Financial Management Plan 2023-2033; the City’s Rates Resolution 2023-24; and 2023-24 Fees and Charges be formally adopted by Council.

3. Recommendations

That:

1. In accordance with section 82(2) of the Local Government Act 1993 (the Act), revenues, expenses and capital works detailed in the document City of Hobart Budget Estimates 2023-24 (Attachment A) be adopted.

2. The schedule of Fees and Charges for Council (Attachment G) to this report, be adopted for 2023-24.

3. The City of Hobart Rates Resolution 2023-24 (Attachment C), be adopted as follows:

(i) Pursuant to s.90 of the Act, a General Rate of 5.97 cents in the dollar of Assessed Annual Value (AAV) be made.

(ii) Pursuant to s.107 of the Act, Council declares by absolute majority that the General Rate is varied according to the use or predominant use of land, as follows:

a) for land used for commercial purposes, vary the general rate to 7.36 cents in the dollar of AAV.

b) for land used for industrial purposes, vary the general rate to 6.03 cents in the dollar of AAV.

c) for land used for primary production purposes, vary the general rate to 5.50 cents in the dollar of AAV.

d) for land used for public enterprise purposes, vary the general rate to 6.32 cents in the dollar of AAV.

e) for land used for residential purposes, vary the general rate to 5.21 cents in the dollar of AAV.

f) For land used for residential short stay visitor accommodation purposes, vary the general rate to 10.42 cents in the dollar of AAV.

g) for land used for sporting or recreation facilities, vary the general rate to 6.65 cents in the dollar of AAV.

h) for non-use of the land, vary the general rate to 6.14 cents in the dollar of AAV.

i) For non-use residential land, vary the general rate to 12.28 cents in the dollar of AAV.

(iii) Pursuant to s.93 of the Act, a Stormwater Removal Service Rate of 0.47 cents in the dollar of AAV be made.

(iv) Pursuant to s.93A of the Act and the provisions of the Fire Service Act 1979 (as amended), the Council makes the following rates for land within the municipal area:

a) A permanent brigade district fire rate of 1.095 cents in the dollar of AAV subject to a minimum amount of $48 in respect of all rateable land within the permanent brigade rating district.

b) A Fern Tree volunteer brigade district fire rate of 0.29 cents in the dollar of AAV subject to a minimum amount of $48 in respect of all rateable land within the Fern Tree volunteer brigade rating district.

c) A general land fire rate of 0.23 cents in the dollar of AAV subject to a minimum amount of $48 in respect of all rateable land within the municipal area which is not within the permanent brigade rating district or the Fern Tree volunteer brigade rating district.

(v) Pursuant to s.107 of the Act, Council declares by absolute majority that the permanent brigade district fire rate is varied within the permanent brigade rating district according to the use or predominant use of land, as follows:

a) for land used for commercial purposes, vary the permanent brigade district fire rate to 1.35 cents in the dollar of AAV.

b) for land used for industrial purposes, vary the permanent brigade district fire rate to 1.06 cents in the dollar of AAV.

c) for land used for primary production purposes, vary the permanent brigade district fire rate to 1.00 cents in the dollar of AAV.

d) for land used for public enterprise purposes, vary the permanent brigade district fire rate to 1.58 cents in the dollar of AAV.

e) for land used for residential purposes, vary the permanent brigade district fire rate to 0.94 cents in the dollar of AAV.

f) for land used for sporting or recreation facilities, vary the permanent brigade district fire rate to 0.57 cents in the dollar of AAV.

g) for non-use of the land, vary the permanent brigade district fire rate to 0.92 cents in the dollar of AAV.

vi) 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 $270 to apply to residential properties; and

b) A Service charge of $540 to apply to non-residential properties.

vii) A Waste Management Service Charge of $75 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 fortnightly utilising a food organics garden organics waste collection bin.

viii) Pursuant to s.94 of the Act, a Waste Management Service Charge for food organics garden organics collection be made in the sum of $160.00 for all rateable land within the municipal area to which Council supplies or makes available a food organics garden organics waste collection service weekly utilising a food organics garden organics collection bin.

(ix) Pursuant to s.94 of the Act, a service charge be made for waste management services to offset a levy payable by the Council to the State Government under the Waste and Resource Recovery Act 2022 (a Waste Management Levy Offset Service Charge) and varied according to the use or predominant use of land as follows:

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

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

(x) Pursuant to s94 of the Act, a service charge be made of $107 for an initial service charge for waste, or recycling, residential or non-residential and $176 to upgrade from a 120Lt to 240Lt mobile garbage bin residential.

4. The penalty on unpaid rates be 3 per cent of the amount.

5. The interest rate on unpaid rates be 9.85 per cent per annum, charged monthly.

6. The 2023-24 Annual Plan (Attachment D) be adopted.

7. The Long-Term Financial Management Plan 2023-33 (Attachment B) be adopted.

8. The following delegation be approved:

(i) Pursuant to section 22 of the Act, the Council delegate to the Chief Executive Officer, being the General Manager as appointed by Council pursuant to section 61 of the Act the power to expend monies on the Council’s behalf identified as Delegation Classification 1 items in the Council’s Annual Plan 2023-24; and, the Council authorise the Chief Executive Officer to delegate, pursuant Section 64 of the Act, to such employees of the Council as she considers appropriate, the power to expend monies on the Council’s behalf identified as Delegation Classification 1 items in the Council’s Annual Plan.

9. The Council adopt the amended City of Hobart Rates and Charges Policy (Attachment E).

10. The Chief Executive Officer be authorised to finalise the City of Hobart Rates and Charges Policy and arrange for it to be made available to the public in a paper format from the Council’s Customer Service Centre and in an electronic format from Council’s website.

11. The Council note the observations of the Risk and Audit Panel as detailed in this report.

4. Background

4.1. This report presents the City’s Estimates and proposed fees and charges for 2023-24.

4.2. The Estimates documents comprise:

· The City of Hobart 2023-24 Budget Estimates (Attachment A). This contains discussion of all elements comprising the Estimates and is required pursuant to section 82 of the Act;

· The Annual Plan for 2023-24 (Attachment D). This is required pursuant to section 71 of the Act. It is required to set out how the objectives of Council’s Strategic Plan are to be met, including a summary of the Estimates adopted, and is to be formally adopted by the Council.

· The Long-Term Financial Management Plan 2023-2033 (LTFMP) (Attachment B). This is required pursuant to section 70 of the Act and is to be consistent with the Council’s Strategic Plan; and

· The Rates Resolution for 2023-24 (Attachment C). This document is required pursuant to Part 9 of the Act.

4.3. A comprehensive review of the City’s Rating and Valuation Strategy will be undertaken during 2023-24 to review how rates are levied and applied.

4.4. At its meeting on 1 August 2022, in response to a notice of motion from the Deputy Lord Mayor, the Council resolved that:

4.4.1. Council consider differential rating for properties used for short stay visitor accommodation and vacant – residential land during its broader review of the City of Hobart Rating and Valuation Strategy in 2022-23.

4.4.2. In order to both ensure housing stock is retained and to stimulate residential development, the Council commit to finding incentives through providing incentives, especially to build on vacant residential land, and to consider potentially significantly higher rates for short stay visitor accommodation in residential areas.

4.4.3. A differential rating strategy or other appropriate measures be considered to address long-term unoccupied properties as part of the broader review of the City of Hobart Rating and Valuation Strategy in 2022-23.

4.5. The Valuer-General completed the revaluation of all properties in the City of Hobart and provided the updated information 1 June 2022. The change to valuations was unprecedented. Changes (particularly to the residential sector) necessitated the introduction of a differential rating system and limiting rate increases to ensure equity of the distribution of the rate burden in 2022-23.

4.6. The proposed rating strategy for 2023-24 is, therefore, an interim rating strategy designed to continue to manage the disparity in the distribution of rate collections arising from the 2021 municipal revaluations. It also addresses Council’s decision at its meeting on 1 August 2022 to consider differential rating for properties used for short stay visitor accommodation and vacant – residential land to ensure housing stock is retained and to stimulate residential development respectively, until the broader review of the City’s Rating and Valuation Strategy is undertaken in 2023-24.

4.7. Given the proposed changes to the rates, the City of Hobart Rates and Charges Policy has been amended to reflect these changes (Attachment E).

4.8. The budget process for 2023-24 has included workshops with Elected Members since February 2023, and more recently on 15 May and 29 May to discuss matters impacting the 2023-24 Estimates, the capital works program, rates and fees and charges.

Risk and Audit Panel Observations

4.9. The Risk and Audit Panel (RAP) met on 7 June 2023 to review the documents.

4.10. In reviewing the City of Hobart’s 2023-24 draft Budget Estimates, Long‑Term Financial Management Plan, Rating Strategy and associated documents, the Risk and Audit Panel:

4.10.1. Acknowledges and commends work undertaken in redeveloping the Long‑Term Financial Management Plan, managing the annual budget process, and moving towards an equitable and sustainable rating strategy.

4.10.2. Notes the challenges presented by a high inflation environment in respect of financial management.

4.10.3. Notes that the budgeted operating results over 10 years predicate modest surpluses, however these appear below the level which will deliver sound long term financial sustainability.

4.10.4. Highlights that the capacity of the Council to meet its long‑term sustainability obligations, including the ability of Council to fund capital projects in respect of new infrastructure, is a critical strategic risk.

4.10.5. Strongly supports ongoing development of the Long‑Term Financial Management Plan, including consideration of growth in the rates base and the risk associated with future assessment of depreciation expense.

4.10.6. Strongly supports a system of varied rates as a means of providing flexibility and equity in the rating system moving forward, noting that the various categories of properties are exposed to differing market movements.

4.10.7. Supports the proposed further consideration of Council’s rating strategy.

4.10.8. Highlights the need to undertake the proposed review of Asset Management Strategies and Plans in 2023-24.

4.10.9. Is unable to form a view on the extent to which the draft Budget Estimates and Long‑Term Financial Management Plan are consistent with Council’s Strategic Plan and Strategic Asset Management Plans.

4.11. In response to feedback provided by the RAP, the City reviewed and amended its underlying assumptions and forecasts in the LTFMP to ensure they were consistent with the Financial Management Strategy Principles.

5. Legal, Risk and Legislative Considerations

5.1. Section 82 of the Act requires the Chief Executive Officer to prepare Estimates of the Council’s revenue and expenditure for each financial year, and details what the Estimates must contain.

5.2. The Estimates must be adopted by the Council before 31 August 2023 by absolute majority.

5.3. The rating resolution requires approval by absolute majority of Council. If sufficient revenue is not raised by rates, the Council will be unable to deliver the level of services required by the community and the infrastructure required of a growing capital city.

5.4. Council’s Rates and Charges Policy is required to be updated to reflect the change to Council’s current rating strategy. This is a requirement pursuant to section 86B(4)(c) of the Act, which states that:

A council must reviews its rates and charges policy at the same time, or before, making under section 107 a variation of a rate or charge in respect of a financial year, if such a variation of that rate or charge was not made in respect of the previous financial year.

5.5. A differential rating strategy is proposed pursuant to section 107 of the Act, which states that:

(1) A council, by absolute majority, may declare that the general rate, a service rate or a service charge varies within the municipal area or within different parts of the municipal area according to any or all, or a combination of any or all, of the following factors:
(a) the use or predominant use of the land;

(b) the non-use of the land;

(c) the locality of the land;

(d) any planning zone;

(e) any other prescribed factor.

5.6. Section 108 of the Act states that:

If a council varies a rate, the general manager must notify the ratepayer in a rates notice –

(a) of the rate as varied; and

(b) of the factor on which the variation of the rate was calculated; and

(c) of the date on which the variation takes effect.

5.7. Pursuant to section 205 of the Act, Council has the following powers:

(1) In addition to any other power to impose fees and charges but subject to subsection (2), a council may impose fees and charges in respect of any one or all of the following matters:

(a) the use of any property or facility owned, controlled, managed or maintained by the council;

(b) services supplied at a person's request;

(c) carrying out work at a person's request;

(d) providing information or materials, or providing copies of, or extracts from, records of the council;

(e) any application to the council;

(f) any licence, permit, registration or authorization granted by the council;

(g) any other prescribed matter.

(2) A council may not impose a fee or charge in respect of a matter if –

(a) a fee or charge is prescribed in respect of that matter; or

(b) this or any other Act provides that a fee or charge is not payable in respect of that matter.

(3) any fee or charge under subsection (1) need not be fixed by reference to the cost to the council.

5.8. Pursuant to section 206 of the 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.

6. Discussion

6.1. It is proposed that:

6.1.1. The 2023-24 Budget Estimates; Long-Term Financial Management Plan 2023-2033; 2023-24 Rates Resolution; 2023-24 Annual Plan; and 2023-24 Fees and Charges be formally adopted by Council.

6.1.2. The attached City of Hobart Rates and Charges Policy, as amended, be adopted and copies made available to the public in a paper format from the Customer Service Centre and in an electronic format prominently from the Council’s website.

6.1.3. The Council note the observations of the Risk and Audit Panel as detailed in section 4 of this report.

Estimates Overview

6.2. Key aspects of the 2023-24 Budget include:

· An operating budget of $167.5 million for the delivery of services to the community;

· A capital works program of $35 million that will focus on delivering new and upgraded City assets.

Operating Result

6.3. An underlying surplus is forecast of $500,000 in 2023-24.

6.4. Some key factors impacting the Council’s forecast underlying operating result of $500,000 are:

6.4.1. Estimates forecast total rates income of $109.7 million, an increase of $8.59 million from the 2022-23 estimates.

6.4.2. Parking fees and charges for car parks and on-street parking totalling $21.3 million are forecast.

6.4.3. A return to 100 per cent distributions from the Council’s ownership share in TasWater, totalling $2.2 million plus a further $400,000 as a catch-up distribution for missed dividends.

6.4.4. Property rental income is forecast to increase by $252,000, from $3.2 million in 2022-23 to $3.4 million in 2023-24.

Partially offset by:

6.4.5. Increases in depreciation expense of $1.6 million from the 2022-23 estimate of $33.4 million to $35 million in 2023-24.

6.4.6. Increase in labour costs as a result of the March 2023 quarter CPI payable under City of Hobart Enterprise Agreement 2021.

Cash Flows

6.5. The Council’s cash balance is forecast to decrease by $11.3 million from the forecast $43.3 million at 30 June 2023 to $32.1 million at 30 June 2024.

6.6. Cash provided by operating activities is forecast to be $55.9 million in 2023-24.

Financing

6.7. Existing debt principal repayments of $10.13 million will be made during 2023‑24.

6.8. Council’s borrowing portfolio ‘peaked’ at $65.1 million in 2020-21 and is forecast to reduce to $39.86 million as at 30 June 2024 and remains within LTFMP benchmarks.

Capital Expenditure - New Assets/Upgrades and Asset Renewal

6.9. The Estimates include the proposed 2023-24 capital works program for Council consideration.

6.10. Whilst contractor and supply chain challenges persist, the budget provides funding for a capital works program totalling $35 million.

6.10.1. This includes projects in receipt of grant funding totalling $10.6 million.

6.10.2. The infrastructure provided as a result of this program will have a significant uplift of services provided and continue to see Hobart established as a modern global City.

6.11. The 2023-24 Budget Estimates provide capital works funding from the Council’s own funds of $24.4 million, comprising:

· Asset renewal of $12 million;

· New assets of $6.2 million;

· Asset upgrades of $2 million; and

· Plant and equipment funding of $4.2 million.

6.12. In addition, the budget provides for $10.6 million of grant funded capital works, comprising:

· Asset renewals of $685,000;

· New assets of $8 million; and

· Asset upgrades of $1.9 million.

6.13. Further detail on the individual projects in the capital works program for 2023-24 are included in the Budget Estimates.

Long-Term Financial Management Plan (LTFMP)

6.14. The 2023-24 Estimates have been prepared in accordance with the updated LTFMP (Attachment B).

6.15. The LTFMP has been prepared on the basis of a number of assumptions regarding the economic and financial environment into the future.

6.16. The financial modelling forecast that the Council will maintain an underlying operating surplus in 2023-24.

Annual Plan 2023-24

6.17. The Annual Plan is required pursuant to Section 71 of the Act (Attachment D). The Plan sets out the strategic directions, major actions and initiatives that will guide the priorities of the organisation over the coming year. The Plan continues to deliver on the strategies and commitments in the Capital City Strategic Plan and the City’s community vision, while driving the organisational transformation program, which will review and focus on the public value created through the City’s services, policies and programs.

6.18. The effectiveness of the strategic priorities, major actions and initiatives in the City’s Annual Plan will be monitored through progress reports to the Council and through the City of Hobart Annual Report.

Rating Strategy and Rates Resolution

6.19. An 8.5 per cent increase in rates revenue is required for 2023-24 to fund Council operations. With the City’s rating strategy for 2023-24 and growth in the City due to development activity, this translates into an increase for the average residential rate payer of 6.9 per cent (or CPI) after the State Government fire and landfill levies, however, because of the municipal property revaluation the impact on individual ratepayers will vary.

6.20. The fire levy will increase by $851,000 (6.36 per cent) to $14.2 million in 2023-24. Pursuant to the Fire Service Act 1979, local government acts as a collection agent for this State Government levy, which is paid directly to the State Fire Commission. Council earns a 4 per cent collection fee, which is included in revenue.

6.21. From 1 July 2022, the State Government introduced a state-wide landfill levy pursuant to the Waste and Resource Recovery Act 2022 on waste disposed to landfill both as a disincentive to landfilling and as a mechanism to fund strategic investment into Tasmania’s waste and resource recovery sectors. The Council is required to pay the levy to the State Government under this Act. For 2023-24 the amount to be collected is $500,000, unchanged from 2022-23. The levy equates to $20 per tonne of waste disposed to the Council's operated landfill facility, then $40 per tonne after two years and $60 per tonne after two more years.

6.22. A $10 increase in the Waste Management Service Charge and the Food Organics Garden Organics Collection Service Charge for residential properties is proposed.

6.23. The Stormwater Removal Service Rate will be re-introduced for 2023‑24 after it was removed for 2022-23 under the Council’s temporary rating strategy adopted for 2022-23 to manage the impacts from the 2021-22 municipal revaluation.

6.24. A differential rating strategy is proposed to ensure the increases in property values resulting from the 2021-22 municipal area revaluation do not continue to cause disparity in rate increases across land uses.

6.25. A differential rating strategy for properties used for short stay visitor accommodation and vacant – residential land is also proposed for 2023-24 to address Council’s decision at its meeting on 1 August 2022 regarding differential rating for properties used for short stay visitor accommodation and vacant – residential land to ensure housing stock is retained and to stimulate residential development. The prior Council report is attached for reference, which includes examples of where this has been applied in other councils interstate (Attachment F).

6.26. This matter, including the broader issue of rating incentives and rebates, will be considered as part of the City’s broader review of its rating and valuation strategy to be undertaken during 2023-24.

6.27. Differential rating is a rating tool, available under section 107 of the Act, which allows a council to charge a different rate in the dollar depending on land use and/or location, planning zone or other prescribed factor.

6.28. As outlined in the earlier report at Attachment F, many councils have introduced a similar differential rating strategy. The objective of the differential rating strategy is:

6.28.1. For properties used for short stay visitor accommodation, to ensure housing stock is retained and to ensure owners of residential land used for the commercial purpose of short stay visitor accommodation contribute to the provision of Council services and facilities that are associated with that commercial use e.g. economic development, tourism, communications and marketing.

6.28.2. For properties with a land use of vacant – residential, to:

· Encourage development of vacant land for housing and other purposes.

· Promote the development of all properties to their full potential thereby stimulating economic growth and development in all areas of the municipal area.

· To discourage the holding of land.

· To ensure vacant landowners contribute an equitable share of the rate burden compared to other types of land owners.

6.29. It is not proposed that a differential is applied to other types of vacant land. Other types of vacant land e.g. rural, cannot be easily developed and in respect to vacant commercial and vacant industrial land it is noted that there are only a very small number of properties with that land use in the municipal area (single digits) and in some cases the land is under development. Furthermore, the costs of implementation would outweigh the benefits and given the small number of properties, this in itself may seem as unfair to differentially rate so few.

6.30. The Act does not give a council power to levy a general or other rate differentiated by reason that the property is unoccupied.

6.31. Properties are valued based on the best or highest use of the land, so there is no Office of the Valuer-General property type of ‘unoccupied’. There are therefore no current legislative provisions that would allow Council to differentially rate buildings that are unoccupied.

6.32. The changes outlined above to the City’s Rating Strategy for 2023-24 have been reflected in an amended version of the City of Hobart Rates and Charges Policy.

Quantum of Differential Rate for Vacant – Residential Land and Short Stay Visitor Accommodation

6.33. While it is difficult to determine what level of inducement or disincentive, that is increased rates, would be required to stimulate residential development and ensure housing stock is retained, any increased rates would need to be considered with regard to the principles of taxation as under the Act, rates are a form of taxation for the purposes of local government.

6.34. Council’s rating principles as set out in the City of Hobart Rates and Charges Policy are:

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

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

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

6.34.4. 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.

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

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

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

6.34.8. Flexibility – by responding where possible to unforeseen changes in the economy.

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

6.35. It is therefore proposed that Council introduce a stepped approach to differential rating short stay visitor accommodation and vacant – residential land noting that this matter, including the broader issue of rating incentives and rebates, will be considered as part of the City’s broader review of its rating and valuation strategy to be undertaken during 2023-24, which will include community consultation.

6.36. With the following analysis it should be noted that the impact on individual ratepayers may vary from the ‘average’.

6.37. At quantums of 1.25x, 1.5x and 1.75x the general rate-in-the-dollar, an average vacant residential land ratepayer would still pay less than an average residential ratepayer in 2023-24. This is unlikely to be sufficient incentive to develop vacant land.

6.38. A 2x the general rate-in-the-dollar, i.e. a differential with a 2x quantum, would mean that an average vacant residential land ratepayer would pay approximately the same as an average residential ratepayer in 2023-24.

6.39. At 3x the rate in the dollar, an average vacant residential land ratepayer would pay $1,026 more than an average residential ratepayer and at 4x the general rate in the dollar, an average vacant residential land ratepayer would pay $2,232 more than the average residential ratepayer in 2023-24.

6.40. At quantums of 1.25x, 1.5x and 1.75x the general rate-in-the-dollar, an average short stay visitor accommodation ratepayer would still pay less than an average ratepayer who owns a holiday apartment in the municipal area in 2023-24. This is unlikely to be sufficient incentive to to ensure housing stock is retained.

6.41. A 2x the general rate-in-the-dollar, i.e. a differential with a 2x quantum, would mean that an average short stay visitor accommodation ratepayer would pay $52 more than an average ratepayer who owns a holiday apartment in the municipal area in 2023-24.

6.42. At 3x the rate in the dollar, an average short stay visitor accommodation ratepayer would pay $2,049 more than an average ratepayer who owns a holiday apartment in the municipal area in 2023-24 and at 4x the general rate in the dollar, an average residential land ratepayer would pay $4,046 more than an average ratepayer who owns a holiday apartment in the municipal area in 2023-24.

6.43. It is therefore proposed that for 2023-24, Council introduce a General Rate differential for vacant – residential land and land used for short stay visitor accommodation that is twice the respective land use differential or a 100 per cent increase in General Rates and consider this matter further as part of the City’s Rating and Valuation Review to be undertaken in 2023-24, which will include community consultation.

6.44. Applying a higher differential rate for vacant residential land and land used for short stay visitor accommodation will not affect the total amount of revenue Council collects in rates, but it will affect the rate distribution slightly, which means that vacant residential landowners and owners of properties used for short stay visitor accommodation will pay higher general rates and all other ratepayers will pay less in rates than they otherwise would, albeit because of the municipal property revaluation the impact on individual ratepayers will vary.

6.45. More information on the financial impact is included in section 8.

6.46. More information on the implementation of the differential is included in section 9.

Fees and Charges

6.47. It is proposed that the attached schedule of fees and charges be adopted for 2023-24 (Attachment G).

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

6.49. Generally, a CPI increase as at 30 March 2023 has been applied across fees and charges, except those where the increase is statutory and the price determined by legislation or there was a specific reason for a change to the existing fee.

6.50. Parking fees and charges have been indexed by Hobart 2023 March Quarter CPI of 6.86 per cent, consistent with other fees and charges.

6.51. Fees and charges for 2023-24 will become effective as at 1 July 2023.

6.52. Pursuant to section 206 of the Act, 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.

7. Capital City Strategic Plan

7.1. Pillar 8 – Governance is applicable in considering this report, particularly outcome 8.5.

Quality services are delivered efficiently, effectively and safely:

Optimise service delivery to ensure organisational sustainability and best value for the community.

Maintain a rating system that supports fairness, capacity to pay and effectiveness.

Monitor and maintain the City’s long-term financial sustainability.

Implement best practice management of the City’s assets.

Proactively seek additional funding opportunities.

8. Financial Viability

8.1. Applying a higher rate-in-the-dollar to vacant land – residential and land used for short stay visitor accommodation in comparison to all other land use categories means that vacant-residential landowners will pay higher general rates in comparison to all other types of landowners (on a per $ of AAV basis). As the amount of general rates collected from vacant residential land and land used for short stay visitor accommodation increases (as does the required rate-in-the-dollar), the amount of general rates to be collected from the other land categories decreases (as does the rate-in-the-dollar).

8.2. It is re-emphasised that applying a differential rate for vacant residential land and land used for short stay visitor accommodation will not affect the total amount of revenue Council collects in rates but it will affect the rate distribution.

8.3. The higher differential rate for vacant residential land and land used for short stay visitor accommodation will cause a higher proportion of total rate revenue to be generated from these land uses. Conversely, this will mean that the proportion of total rate revenue to be generated from other land uses will decrease.

9. Customer Implications

9.1. Council’s decision to introduce a higher differential rate for vacant residential land and land used for short stay visitor accommodation will mean that owners of such land will experience an increase in rates from 1 July 2023 compared to prior years.

9.2. The differential rate will impact upon approximately 720 properties in the Hobart municipal area.

9.3. Under the Act a ratepayer may object to a variation (differential) rate based on a particular use of land.

(2) The only ground for an objection is that the use of the ratepayer's land is not the use of land on which the variation is based.

(3) An objection is to –

(a) be made in writing within 21 days after receipt of a notice under section 108 notifying the variation; and

(b) state the use of the ratepayer's land; and

(c) be accompanied by evidence of the use of the land; and

(d) be lodged with the general manager.

(4) A council is to make a decision in respect of an objection within 60 days after the objection is lodged.

(5) The council may decide that the variation in the rate –

(a) applies to the ratepayer based on the use of the ratepayer's land; or

(b) does not apply because of the use of the ratepayer's land.

(6) A ratepayer may apply to the Magistrates Court (Administrative Appeals Division) for a review of –

(a) a council's decision under subsection (5) ; or

(b) a council's failure to make a decision under subsection (5) ; or

(c) a council's failure to make a decision within the period specified in subsection (4) .

(7) If the council does not make a decision in respect of an objection within 60 days after the objection is lodged, the council is taken to have made a decision in respect of that objection on the last day of that period.

10. Communications Strategy

10.1. A comprehensive Communication Plan has been developed to accompany the Estimates this year. The plan will highlight the way in which rates are used to deliver services and meet community need.

10.2. The Plan will identify the State Government charges collected by the Council and over which the Council has no discretion.

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

Lara MacDonell

Manager Rates, Procurement and Risk

Michelle Wickham

Chief Financial Officer

Michael Reynolds

Director City Enablers

Date: 14 June 2023

File Reference: F23/57135

Attachment a: 2023-24 Budget Estimates (Supporting information)

Attachment b: Long-Term Financial Management Plan 2023-2033 (Supporting information)

Attachment c: 2023-24 Rates Resolution (Supporting information)

Attachment d: Draft Annual Plan 2023-24 (Supporting information)

Attachment e: Rates and Charges Policy (Supporting information)

Attachment f: Prior Report - Response to Notice of Motion - Differential Rating Strategy - 26 July 2022 (Supporting information)

Attachment g: 2023-24 Fees and Charges (Supporting information)

Item No. 11

Agenda (Open Portion)

Council Meeting

Page 1

19/6/2023

REPORT TITLE: Advice to Property Owners on Increasing Housing Options

REPORT PROVIDED BY: Manager Development Appraisal

Director City Life

1. Report Summary

1.1. This report is provided in response to a motion passed by the Council regarding advice to property owners on the options available to them to increase accommodation options across Hobart. The motion is set out in full in the background section of this report.

2. Key Issues

2.1. Hobart is in a housing crisis. It is important that every effort is being made to try and increase housing supply. This report addresses the steps which are already being carried out and new ideas for communicating with property owners, to ensure they have information on the ways to increase housing supply in Hobart.

3. Recommendation

That the Director City Life is to undertake the following actions to attempt to increase housing supply in Hobart:

1. Continue to provide a free duty planner service and also to provide a free “pre-application enquiry” process to assist property owners with advice on specific planning issues;

2. Update the City of Hobart’s website to include:

(a) the State Government advice on ancillary dwellings;

(b) stories of success of ancillary dwellings; and

(c) proposed designs for ancillary dwellings by student or young architects.

3. The Director City Futures, along with the Council’s Development Concierge once that role has commenced and the Manager Strategic Engagement and Partnerships, undertake further steps to attempt to increase housing supply in Hobart, including:

(i) work closely with:

(a) Deputy Lord Mayor, Councillor Burnett, as Chairperson of the Future Hobart Portfolio Committee; and

(b) Councillor Dutta, as Chairperson of the Housing and Homelessness Portfolio Committee; and

(ii) work closely with the City Futures Division to identify any further opportunities to assist landowners to identify ways to boost the housing supply.

4. Background

4.1. In the previous term, the Council passed the following motion which was moved by the Deputy Lord Mayor:

“That a report be prepared that investigates ways Council can provide advice to property owners regarding dwelling and property modifications, with a view to increase accommodation options across Hobart.

The advice be tailored for people who might want the flexibility to remain living at their property as their lifestyles might change or as they age, and also to increase the dwelling capacity on their property.

The report would:

1) Structure “plain English” explanations as to options for home modifications, planning requirements and how to meet building codes

2) Identify suitable properties where an increase in the number of dwellings could be possible

3) Provide more information for such opportunities in partnership with organisations such as the Australian Institute of Architects or Housing Industry Association

4) Consider allocating officer time as point of contact on finding these local housing solutions

5) Consider the financial return to Council in order for the program to be successful.”

4.2. The following rationale was provided for the motion:

“ABS figures suggest that in 2016, there were 2.6 occupants per dwelling in Hobart. Much of Hobart’s housing stock is free-standing on large blocks. Some properties have been used as family homes and whilst children have since moved on, family homes are still being used with many empty rooms. There may be the chance to down-size on the same property and to increase the number of dwellings, even within the footprint of the original house for example, that may not have been thoroughly contemplated.

The current housing shortage provides Council with good reason to be proactive in finding more solutions by both pointing out what is possible, and where the Planning Schemes limit such options.

Some properties, depending on their zone may lend themselves to having greater numbers of dwellings on the site. This could be floors or sections of a free-standing house that may be strata titled, or could have other freestanding dwellings such as granny flats built on the property.

Providing proactive advice as to possible options that fit with the Planning Schemes and the neighbourhood could help provide dwellings that are low cost but that provide tangible outcomes to Hobart’s housing shortage.”

5. Legal, Risk and Legislative Considerations

5.1. The Council has a role supporting the community with matters such as the provision of housing. It also has a separate, independent role as planning authority.

5.2. Any efforts to increase housing stock must be carefully considered so that the lines between those two roles is not blurred.

6. Discussion

Specific guidance to property owners

6.1. Planning regulation is highly dependent on the specific circumstances of each property; so much so that it is difficult to provide advice that would be both useful and accurate. Currently, property owners are able to obtain both general advice and specific feedback about proposal from Council officers and this is intended to continue to be provided so that anyone who is considering development on their property has guidance on the specific regulations which will apply.

6.2. To support property owners who are considering development on their land, the Development Appraisal Unit has:

6.2.1. a planner on duty during business hours who is available to provide free advice to members of the public advice on the planning controls that apply to their property, and what options may be available to make alterations;

6.2.2. a cultural heritage officer on duty during office hours to provide advice about heritage issues which must be considered; and

6.2.3. a free “pre-application enquiry” process once plans have been prepared, which allows further advice to be given as to whether the proposal is exempt from planning or, if not, which planning requirements must be met.

6.3. The duty planner is not able to provide advice regarding building, plumbing or other regulation of their property. Building approvals are now regulated by private building surveyors. The planners are aware of this and regularly provide the public with guidance about who they should consult in order to support a compliant project.

6.4. It is proposed to continue with the duty planner service and also to provide our free “pre-application enquiry” process to assist landowners.

General guidance to property owners

6.5. It is noted that the State Government has produced advice regarding ancillary dwellings: Adding Extra Living Quarters To Your Home; A Guide to Creating Ancillary Dwellings in Tasmania, which was produced in to assist property owners to identify where an ancillary dwelling may be appropriate.

6.6. Property owners may find it useful to see examples of when an ancillary dwelling has worked well in different contexts, including photos of constructed ancillary dwellings. It may be useful to hear the stories of success of those who live in ancillary dwellings and how they have worked well.

6.7. It may also encourage property owners if they can see examples of designs for ancillary dwellings, so that they can better understand if it would be suitable for their property. The University of Tasmania and the Australian Institute of Architects may support student or young architects to submit their ideas for designs of ancillary dwellings.

6.8. It is proposed to include the following on the City of Hobart’s website:

6.8.1. State Government advice on ancillary dwellings;

6.8.2. photos and stories of success of ancillary dwellings; and

6.8.3. proposed designs for ancillary dwellings by student or young architects.

Portfolio Committees

6.9. Fundamentally, this motion is aimed at making some headway into addressing the housing crisis in Hobart. The issues which contribute to the housing crisis and the options available to assist in solving it are complex, multifaceted and interlinked.

6.10. In recognition of the seriousness of the housing crisis, the Council created a Portfolio Committee focusing on Housing and Homelessness. This Committee will consider the contributing factors and potential ways to increase housing and decrease homelessness.

6.11. The issue of increasing housing options is also likely to be considered at the Future Hobart Portfolio Committee, as it considers ways of creating more liveable, better designed and planned, and well-connected neighbourhoods through mixed land use, different housing types and greater access to quality public transport.

6.12. It is proposed that the Director City Futures work closely with the following to identify any further opportunities to assist landowners to identify ways to boost the housing supply:

6.12.1. Deputy Lord Mayor, Cr Burnett, who is the Chair of the Future Hobart Portfolio Committee; and

6.12.2. Cr Dutta who is the Chair of the Housing and Homelessness Portfolio Committee.

Other work

6.13. In addition to the Portfolio Committees, there is a vast body of other work which is currently being undertaken by the City Futures Division, both itself and in collaboration with other entities, and the State Government including:

6.13.1. the Council’s Central Hobart Precinct Structure Plan, which includes identifying specific sites which are suitable for medium density housing and engagement with particular land-holders;

6.13.2. the North Hobart Structure Plan and Sandy Bay Structure Plan, which have been initiated by the Council and are being undertaken at present;

6.13.3. the Future Hobart body of work being carried out by the City Futures Division, which ties together the strategic planning projects past and present, with a focus on key issues including housing;

6.13.4. the Greater Hobart Plan, which is a collaboration between the four greater Hobart Councils, which has collated and produced a wealth of publicly-available information regarding the needs of the community over the next 30 years and how those needs can be met;

6.13.5. Medium Density Housing Urban Design guidelines which are being produced by the Department of State Growth;

6.13.6. Heritage Design Guide being produced by the Council’s Cultural Heritage Unit;

6.13.7. the State Government is developing Tasmania's first 20-year housing strategy, expected to be released in July 2023; and

6.13.8. a national housing policy is also being developed by the Federal Government.

6.14. It is proposed that the Director City Futures identify any further opportunities to assist landowners to identify ways to boost the housing supply through these processes.

Development Concierge

6.15. There is currently work being undertaken to create a Development Concierge role within the Council. It is anticipated that the Development Concierge will facilitate:

6.15.1. supportive relationships to actively pursue strategic objectives of the City’s structural plans;

6.15.2. improved and new property owner and developer Council relationships;

6.15.3. connect property owners and developers to meet the strategic vision of the City;

6.15.4. support streamlining resolution times for development applications by providing single point relationship contact with the city;

6.15.5. increased collaboration and attraction of domestic & international developers that fit the Council’s visions;

6.15.6. increased brand reputation as a city supportive of development, while maintaining appropriate contact with members of the community who are concerned about development;

6.15.7. improved developer experience by creating a dedicated service to deliver the Development Concierge program ongoing.

6.16. It is anticipated that once this role has been created, there will be an opportunity to provide property owners and developers with information and support to identify and progress development including housing.

Dedicated resource for housing policy

6.17. Additional resources are intended to be focused specifically on identifying ways to increase housing supply in Hobart. The Manager Strategic Engagement and Partnerships will provide leadership and cross-divisional coordination to develop a Housing Action Plan, with the express goal of identifying policy levers available to the Council to increase housing supply in Hobart.

7. Hobart: A Community Vision For Our Island Capital

7.1. Improving housing accessibility is identified as a priority in the Community Vision.

8. Capital City Strategic Plan

8.1. Improving housing accessibility is also identified as a priority in the Strategic Plan.

9. Regional, State and National Plans and Policies

9.1. Plans and policies in other jurisdictions are discussed above.

10. Financial Viability

10.1. There are no financial implications from the recommendations in this report.

11. Sustainability Considerations

11.1. This motion does not have any specific sustainable considerations.

12. Community Engagement

12.1. This motion does not require any specific community engagement.

13. Communications Strategy

13.1. This motion does not prompt a requirement for a communications strategy.

14. Innovation and Continuous Improvement

14.1. There is a significant body of work being done by the Council to address housing and homelessness, which are a priority for the community. This will continue irrespective of the recommendations in this report.

15. Collaboration

15.1. There is a significant collaboration between the Council and other key stakeholders to attempt to address housing and homelessness, which are a priority for the community. This will continue irrespective of the recommendations in this report.

Karen Abey

Manager Development Appraisal

Neil Noye

Director City Life

Date: 14 June 2023

File Reference: F23/4395; 16/117

Item No. 12

Agenda (Open Portion)

Council Meeting

Page 1

19/6/2023

REPORT TITLE: Fee Waiver - Request for Reduction in Planning Fees

REPORT PROVIDED BY: Manager Development Appraisal

Director City Life

1. Report Summary

1.1. TasWater is seeking a reduction of fees for a planning application for the proposed new sewage treatment plant at Selfs Point.

1.2. The advertised fees for the current financial year would be at least $178,000 depending on the final estimate of the cost of works. TasWater has proposed a reduction of fees to between $25,000 and $40,000.

2. Key Issues

2.1. This report provides an analysis of:

2.1.1. planning fees generally;

2.1.2. the proposal;

2.1.3. a comparison of our fees charged for planning applications, with the fees charged by other Councils;

2.1.4. consideration of the reasons provided to support the request; and

2.1.5. a recommendation to retain full fees for the planning application, unless there is no appeal to the Tribunal in relation to the application.

3. Recommendation

That:

1. TasWater pay full fees for the application for a new sewerage treatment plant at Selfs Point, in accordance with the Council’s published fees and charges; or

2. Should the Council be supportive of a reduced fee/fee waiver for the application for a new sewerage treatment plant at Selfs Point, the following conditions apply:

a) Full fees are payable at time of lodgement of the application;

b) If the Council’s decision (as planning authority) on the application is appealed to the Tasmanian Civil & Administrative Tribunal, full fees are retained; and

c) If the Council’s decision on the application is not appealed, the Chief Executive Officer and Director City Life are authorised to refund 50% of the full fees to TasWater.

4. Background

4.1. There are no delegations to Council officers to waive or reduce fees for planning applications of this nature. Council approval is required.

5. Legal, Risk and Legislative Considerations

5.1. It is noted that section 205(3) of the Local Government Act 1993 provides that the fees and charges set by a Council need not be fixed by reference to the cost to the Council.

6. Discussion

6.1. Tasmanian Water & Sewerage Corporation Pty Ltd (TasWater) intends to make an application for a planning permit for a new sewage treatment plant at Selfs Point to meet the future sewage treatment requirements of the Greater Hobart, following the decommissioning of Macquarie Point sewage treatment plant.

6.2. At the time of preparing this report, the application has not been lodged.

Planning fees generally

6.3. Planning application fees are calculated using the anticipated cost of the development. Fees are charged in brackets, with applications with a greater cost of development incurring greater fees.

6.4. Planning application fees are set in anticipation that the total fees received will only ever partially cover the cost of the Development Appraisal Unit and will not contribute at all to the cost of assessing planning applications carried out by other units. The shortfall is balanced by payments received from rates.

6.5. Generally, the larger applications / fees are more likely to cover a greater amount of the time / cost incurred to assess them. However, there are some applications where the costs of applications far exceed the amount received in fees. This will particularly be the case where there is an appeal or in circumstances where an external consultant assists with an assessment or appeal.

6.6. The recent application for a cable car is an example where the overall costs incurred by the Council because of the application were significantly in excess of the fee paid for the planning application. There are many other applications which result in the Council incurring costs in excess of the fees paid.

6.7. It is not Council practice to cost officer time. Nevertheless, it must be recognised that each application contributes to the time taken to assess applications, support Elected Members where they will make the decision as planning authority, and represent the Council in an appeal.

6.8. In the 2023 / 2024 financial year, it will be proposed that the Council approve planning fees increased by CPI (6.86%), including the top fee bracket.

Proposal

6.9. TasWater have indicated that the cost of works was estimated at $140M in 2016 and have used that amount as the basis for calculating the anticipated fees.

6.10. TasWater’s calculation is that fees of at least $178,000 will be payable.

6.11. A proposal is made for fees to be capped at $25,000 to $40,000 rather than the full fees being payable.

6.12. This is justified for the following reasons:

6.12.1. TasWater is a statutory authority that raises its revenue from customers and any charges are ultimately recovered from the customer base through its general fees and charges;

6.12.2. the relocation will provide a significant public benefit to the local community and environment; and

6.12.3. Council costs to assess the application will be significantly less than the advertised fees.

6.13. It is noted that an updated estimate of the cost of works has not been provided, in order to accurately calculate the fees. It is understood that this is confidential, and the Development Appraisal Unit has agreed that this information would not be publicly released in the event that it is provided in order to calculate the fees. If capped fees are agreed by the Council, then an updated anticipated cost of works need not be provided.

Comparison with other Councils

6.14. TasWater provides comparison to the planning fee which would be incurred in other Councils, as follows:

6.14.1. Clarence City Council: $9,700

6.14.2. Glenorchy City Council: $90,700

6.14.3. Meander Valley Council: at cost

6.14.4. Launceston City Council: $34,405.

6.15. The Council’s top fee bracket was introduced in the current financial year (22/23). Prior to recommending that fee, a comprehensive review of all fees charged by Councils in the context of planning applications was carried out by Council officers.

6.16. At the time of the comparison, the top fee charged by the Hobart City Council was $35,000. There were 14 Councils who would have charged more than the Hobart City Council for a project with a cost of works of $100,000,000.

6.17. We also had feedback from developers who were surprised how low our top fees were.

6.18. This is the first application which will be made within this new fee bracket.

6.19. An application with a cost of works of $140M made in other municipalities at the date of preparing this report would include:

6.19.1. Kingborough Council: $157,838

6.19.2. Brighton Council: $302,516

6.19.3. Devonport: $140,575

6.19.4. Northern Midlands: $419,667

Reasons for refund

6.20. It is not disputed that TasWater is a statutory authority that raises revenue from its customers. The Council is effectively in the same position.

6.21. As stated above, the assessment and determination of planning application already depends on contributions from ratepayers and if refunds or waivers are imposed for significant projects such as this then the percentage of the costs covered by fees is reduced.

6.22. It is noted that TasWater is able to produce a significant end of year profit; the Council is not a profit-making entity, although it is acknowledged that some of the profit made by TasWater is paid to the Council as dividends.

6.23. In response to the public benefit reason provided by TasWater, it is noted that the State Government pays full fees on developments to the Royal Hobart Hospital, schools and for social housing; not–for–profit organisations also pay usual planning fees. It is recommended that if fee reductions are to be supported on this ground, then there is a proper consideration of all types of applications that it would capture and the impact that this would have on the Council’s overall revenue.

6.24. As stated above, it is difficult to anticipate with any precision what the costs associated with an application will be. It is not just the planning application which can be more complex as the cost of works increases; often, the post-permit processes are also more complex, taking many meetings and site visits to reach a point where the detailed designs are satisfactory. We charge separate fees for post-permit works but those fees (again) would not come close to covering the cost of the time spent by Council officers to complete the assessments.

6.25. It is noted that the Local Government Act 1993 expressly states that fees do not have to be set by reference to the cost to the Council.

Recommendation

6.26. The proposal by TasWater to cap the fees at or below $40,000 is not recommended.

6.27. A significant factor in the cost of assessment is whether or not an application is appealed to the Tasmanian Civil & Administrative Tribunal. For that reason, it is recommended that:

6.27.1. TasWater pay full fees;

6.27.2. if the Council’s decision on the application is appealed, full fees are retained; and

6.27.3. if Council’s decision on the application is not appealed, the Chief Executive Officer and Director City Life are authorised to refund 50% of the full fees to TasWater.

7. Hobart: A Community Vision For Our Island Capital

7.1. Not relevant.

8. Capital City Strategic Plan

8.1. Not relevant.

9. Regional, State and National Plans and Policies

9.1. Not relevant.

10. Financial Viability

10.1. The decision made by the Council on this proposal will not significantly impact on the budget for the Development Appraisal Unit.

11. Sustainability Considerations

11.1. Not relevant.

12. Community Engagement

12.1. Not relevant.

13. Communications Strategy

13.1. Not relevant.

14. Innovation and Continuous Improvement

14.1. Not relevant.

15. Collaboration

15.1. Not relevant.

Karen Abey

Manager Development Appraisal

Neil Noye

Director City Life

Date: 6 June 2023

File Reference: F23/53283; 16/119

Item No. 14

Agenda (Open Portion)

Council Meeting

Page 1

19/6/2023

REPORT TITLE: Council's Representation on the Hobart Draft Local Provisions Schedule

REPORT PROVIDED BY: Strategic Planner | Urban Futures

Director City Life

1. Report Summary

1.1. The purpose of this report is to provide an overview of the process and content included in the attached Council’s Representation on the Hobart draft Local Provisions Schedule(draft LPS) for the submission by Council within the exhibition period of the draft LPS.

2. Key Issues

2.1. The LPS section of the Tasmanian Planning Scheme(TPS) allows for the incorporation of municipality specific local planning provisions.

2.2. The Hobart draft LPS is currently on exhibition until 30 June 2023.

2.3. The Council acting as a corporation can submit a representation on its own draft LPS. This opportunity allows for addressing minor planning provision issues related to the draft LPS such as those proposed in Council’s representation which include:

2.3.1. Refining the drafting of planning provisions and minor inclusions

2.3.2. Resolving oversights

2.3.3. Adjustments to zone boundary alignments

2.3.4. Logical rezoning of parcels of land

2.4. The City of Hobart has engaged ERA Planning and Environment (ERA) to assist in the review and reporting to Council on representations received during the exhibition period. The report and response to the matters raised is a requirement under s35F of the Land Use Planning and Approvals Act 1993 and will provide advice on whether the draft LPS ought to be modified in response to the representations.

2.5. The Commission through their assessment of the draft LPS will review the matters raised and proposed amendments contained within the submitted representations.

3. Recommendation

That the Council acting as a Corporation endorse the proposed recommended content within Council’s Representation on the Hobart draft Local Provisions Schedule.

4. Background

4.1. The City of Hobart first endorsed the Hobart draft LPS at its meeting on 18 February 2019. Some further inclusions were endorsed at the Council meeting of 9 February 2021.

4.2. Since the initial endorsement, the Commission has been conducting a review and requiring clarifications and revisions to ensure the draft LPS meets all requirements of the relevant legislation.

4.3. The Hobart draft LPS primarily carries forward similar provisions to the Hobart Interim Planning Scheme 2015 (HIPS).

4.4. The LPS section of the Tasmanian Planning Scheme(TPS) facilitates local provisions through the use of mechanisms such as Specific Area Plans(SAP), Particular Purpose Zones (PPZ) and Site Specific Qualifications (SSQ).

4.5. The representation content was provided as a briefing paper and presentation to the Elected Members at a workshop prior to the Planning Committee meeting on 31 May 2023.

5. Legal, Risk and Legislative Considerations

5.1. The submission of the representation is in accordance with s35E of the Land Use Planning and Approvals Act 1993.

5.2. Any risks associated with the implementation and outcomes of the representation content are mitigated through the required comprehensive assessment and review process.

5.3. The proposed amendments in the representation to the draft LPS have the potential to reduce the risk of public and developer frustration, which can, and has in the past, resulted in political discontent directed at the Council.

6. Discussion

Purpose

6.1. The Council, like the general public, has the opportunity during the exhibition period of the draft LPS to submit a representation regarding the proposed draft LPS.

6.2. The representation process allows for addressing minor matters such as refining the drafting of planning provisions and resolving oversights, adjustments to zone boundary alignments, and the logical rezoning of parcels of land.

6.3. Considering the endorsement of the LPS by Council was originally in 2019 it provides an opportunity to respond to issues that may have since arisen.

Representation Content

6.4. The attached representation lists 14 issues and provides suggestions on how they can be addressed and implemented within the LPS.

6.5. The issues raised are summarised below:

6.6. 1.Short Stay Visitor Accommodation

6.6.1. Ensure Visitor Accommodation use status under the draft LPS is consistent with the proposed Council endorsed HIPS Planning Scheme amendment to prohibit new, whole dwelling Visitor Accommodation (unless an ancillary dwelling) the use in the residential zones within Hobart.

6.7. 2. Late Night Venues Provisions/Hotel Industry Use

6.7.1. Apply the Use Standards for late night venues to all Hotel Industry uses operating between the hours of 12:00 am and 7:00 am throughout the municipal area not just in the Commercial and Central Business zones.

6.8. 3. Commercial Zone Specific Area Plan - Use Table

6.8.1. Adjust the Use Table to reflect the intent of Hobart's Commercial Zone SAP.

6.8.2. Apply a permitted use status for Business and Professional Services, Community Meeting and Entertainment, Educational and Occasional Care, Food Services, General Retail and Hire, Hotel Industry, Research and Development, and Visitor Accommodation.

6.8.3. Apply a discretionary use status for Bulky Goods Sales, Equipment and Machinery Sales and Hire, Service Industry, and Storage.

6.9. 4. Hobart Commercial Zone Special Area Plan - Building Height Development Standards

6.9.1. Proposed amendments to the wording of the Building Height Objective and Performance Criteria to address the required compatibility of buildings with the existing character of development in the streetscape and surrounding area. Instead, requiring consideration of the positive contribution of buildings and the height, bulk, and form reflecting the transition between the Central Business Zone and residential areas.

6.9.2. To ensure adjoining heritage buildings are not left vulnerable to unsympathetic adjoining development, the inclusion of the adjacent Heritage height provisions used in the Central Business Zone is proposed which will allow for a respectful transition of development to adjacent Heritage buildings.

6.10. 5. Hobart Commercial Zone Special Area Plan - Design Passive Surveillance Development Standards

6.10.1. Apply the Design Passive Surveillance Development Standards from the State Planning Provisions, as used in other zones, to the Commercial Zone SAP as no passive surveillance and active frontage provisions are proposed in the Commercial Zone SAP.

6.11. 6. Hobart Central Business Zone Special Area Plan - Building Height Development Standards Performance Criteria

6.11.1. Proposed amendments to the wording of the definition of 'Individually Prominent' and Performance Criteria to address the issue of required compatibility with buildings nearby.

6.11.2. The variations will still allow assessment of individual prominence of buildings both within the streetscape and townscape but not necessarily require compatibility of height with buildings that are within close proximity. It will not affect the performance criteria relating to the protection of the view lines and view cones on the landform horizons to kunanyi/Mt Wellington and the Wellington Range.

6.12. 7. Central Business Zone Special Area Plan Amenity Building Envelope

6.12.1. The Amenity Building Envelope diagram is proposed to be carried over from the HIPS however a new diagram is proposed for clarity and to avoid misinterpretation and confusion.

6.13. Amenity Standards for Multiple Dwellings Other Zones

6.13.1. Extend the application of Amenity Standards for Multiple Dwellings to the Urban Mixed Use Zone, Local Business Zone and General Business Zone to ensure multiple dwellings have appropriate levels of residential amenity consistent with the Central Business Zone and Commercial Zone.

6.14. 9. Bicycle Parking for Residential Uses

6.14.1. Require bicycle parking for multiple dwellings and other formats of multiple occupant residential uses.

6.15. 10. Electric Vehicle Charging Facilities

6.15.1. Require the appropriate infrastructure for the installation of charging facilities proportionately to the proposed use and amount vehicle parking proposed.

6.16. 11. Enterprise Road Planning Scheme Amendment

6.16.1. Carry over the previously approved rezoning of the properties at 21,21A,21B Enterprise Road to Low Density Residential and associated application of the Biodiversity Protection Area Overlay.

6.17. 12. 15 Oberon Court, Dynnyrne - Zoning

6.17.1. Amend the proposed Rural Living A zoning of lots 21-27 of the recently approved subdivision to the Low Density Residential Zone to reflect the approved lot sizes.

6.18. 13. Urban Mixed Use Zone to the Commercial Zone - Campbell Street

6.18.1. Amend a parcel of the proposed Urban Mixed Use Zone to the Commercial Zone within Campbell Street.

6.19. 14. 11 Bimbadeen Court, West Hobart - Zoning

6.19.1. Amend the proposed Landscape Conservation zoning of the property to the General Residential Zone.

Next Steps

6.20. Once Council has endorsed the representation it will be formally submitted within the exhibition period.

6.21. The City of Hobart has engaged ERA Planning and Environment (ERA) to assist in the review and reporting back to Council on representations received during the exhibition period.

6.22. A report and response to the matters raised is a requirement under s35F of the Land Use Planning and Approvals Act 1993. Through this process, ERA will report on the merits of the content raised within Council’s representation, amongst others, and like other matters raised in representations, provide advice on whether the draft LPS ought to be modified.

6.23. The Council acting as a planning authority will have the opportunity to review the report and advice and choose whether to adopt recommendations before submitting to the Commission. From this point, the Commission will set hearing dates for the detailed review of the matters raised within the Council’s representation and other representations received. ERA will represent Council as planning authority at any hearings, however, Council as a Corporation will need to nominate a delegate to present their representation.

6.24. The hearing process on the draft LPS in respect of the representation content will allow for the comprehensive justification of the proposed amendments.

6.25. The Commission may determine that the matters raised in the representation are too substantial of a strategic modification and could require that they be addressed through a subsequent planning scheme amendment process.

7. Hobart: A Community Vision For Our Island Capital

7.1. The resolution of proposed issues raised in Council’s is considered to reinforce the Community Vision for our Island Capital.

8. Capital City Strategic Plan

8.1. The resolution of proposed issues raised in Council’s representation is considered to be consistent with the Strategic Plan.

9. Regional, State and National Plans and Policies

9.1. The representation process and content are aligned with the relevant Regional, State and National Plans and Policies with the intent of providing good land use planning outcomes.

10. Financial Viability

10.1. The proposed representation does not generate any specific financial implications for the City of Hobart as budget has been previously allocated for the review of the representations and the Commission hearing process.

11. Sustainability Considerations

11.1. Aspects of the proposed resolution of issues raised in the representation and variation to the planning provisions seek to encourage sustainable outcomes. This would be delivered through supporting improved and appropriately located built forms to allow for opportunities for higher density centralised living. Also, improving convenience of the use of more sustainable transport options.

12. Community Engagement

12.1. The proposed amendments put forward in the representation are not specifically exhibited or subject to an engagement process. However, they are considered minor in nature and are of public benefit, providing logical amendments and inclusions.

Communications Strategy

12.2. There is no required communication strategy for Council’s representation however the exhibition of the draft LPS has been subject to a widespread notification process, public drop-in sessions and comprehensive information provided on the City of Hobart’s website.

13. Innovation and Continuous Improvement

13.1. The matters raised in the representation facilitate innovation and are driven by the pursuit of the continuous improvement of planning provisions and their associated outcomes for the City of Hobart.

14. Collaboration

14.1. Elements of the representation content involved collaboration and consultation with members of the Council’s Development Appraisal and Urban Futures team.

Tristan Widdowson

Strategic Planner | Urban Futures

Neil Noye

Director City Life

Date: 14 June 2023

File Reference: F23/59356

Attachment a: Council's Representation Hobart Draft LPS (Supporting information)

Attachment b: Commercial Zone - SAP - Amendments (Supporting information)

Attachment c: Central Business Zone - SAP - Amendments (Supporting information)

Item No. 16

Agenda (Open Portion)

Council Meeting

Page 1

19/6/2023

REPORT TITLE: Proposed Tram Garage and Display Facility - Hobart Regatta Grounds - H-TRAMS

REPORT PROVIDED BY: Chief Executive Officer

1. Report Summary

1.1. The purpose of this report is to present for approval a request for funding to enable the design development of a Tram Garage and Display Facility proposed to be established on land owned by the City and adjacent to the Hobart Regatta Grounds.

2. Key Issues

2.1. Over previous decades the City has invested significantly in a number of heritage trams, three of these have been restored. All are located in storage facilities located on the Queens Domain. Whilst secure, the vehicles are not accessible (or visible) to the Community.

2.2. The Hobart Tram Restoration and Museum Society (H-TRAMS) is an independent incorporated body, established to facilitate the further restoration, display and possible future operation of Hobart’s heritage trams.

2.3. H-TRAMS has made numerous approaches to the City to identify opportunities for the establishment of a facility to accommodate the trams (both those owned by the City and H-TRAMS) and enable restoration work to be progressed. It has also been proposed that the facility be designed to facilitate public display of the heritage vehicles.

2.4. The proposed establishment of a Tram Garage and Display Facility has been considered by the Council on a number of occasions.

2.5. After an exhaustive search, a site located at 20 McVilly Drive (adjacent to the Hobart Regatta Grounds) was identified and subsequently approved by the Council.

2.6. A Planning Permit for the establishment of the Tram Garage and Display Facility was approved on 16 December 2021.

2.7. With the land secured and the planning permit in place, H-TRAMS is now keen to progress the detailed design of the facility, so it is ‘shovel ready’ and eligible for the allocation of external funding.

2.8. Architects engaged by H-TRAMS have advised that an investment of around $300,000 would be required to complete all the detailed design (including Engineering & Structural Design), Building Survey and Quantity Surveying costs. This estimate would also cover the costs of developing tender specifications and the provision of Contract Superintendent services during the construction period.

2.9. Given the broad range of services encompassed by this cost, the funding would be required over a two-year period.

2.9.1. Funding in the first year would cover the completion of the detailed design and associated services to enable the necessary building permits to be secured.

2.9.2. The remainder of the funding would not be required until external (grant or other) funding is secured. It would be at this time the tenders for the construction of the facility are called and the contract management would be required.

3. Recommendation

That:

1. The report presented by the Chief Executive Officer on the request for funding assistance to enable the design development of a Tram Garage and Display Facility proposed to be established on land owned by the City and located adjacent to the Hobart Regatta Grounds be noted.

2. Grant funding to the Hobart Tram Restoration and Museum Society of an allocation up to $300,000 over the 2023-24 and 2024-25 financial years to enable design development of the Tram Garage and Display Facility be approved.

3. The Grant funding be provided on the basis that in the event the Hobart Tram Restoration and Museum Society ceases to exist, all assets belonging to the Society become the property of the City of Hobart.

4. The Chief Executive Officer be authorised to:

(i) Finalise the grant funding deed to be executed between the City and the Hobart Tram Restoration and Museum Society.

(ii) Negotiate a Memorandum of Understanding between the City and the Hobart Tram Restoration and Museum Society.

(iii) Provide assistance to the Hobart Tram Restoration and Museum Society to secure external funding assistance to enable the development of the Tram Garage and Display Facility to be progressed.

4. Background

4.1. A briefing on the establishment (and operation) of H-TRAMS and their desire to establish a Tram Garage and Display Facility was provided to Elected Members during the Annual Planning Retreat held in February 2023.

4.2. H-TRAMS is an independent, credible, and professional body that owns a number of heritage vehicles. H-TRAMS has worked closely with the City for a number of years to identify a location and secure a planning permit to enable the development of the Tram Garage and Display Facility now proposed.

4.3. H-TRAMS is well situated to secure the external funding required to construct the new facility.

4.4. The allocation of funding proposed in this report will enable the completion of the detailed design of the new facility, allow for the necessary building and other permits to be secured which will mean the project will be truly ‘shovel ready’ when the external funding is sourced.

4.5. The City has invested in the acquisition and restoration of heritage vehicles previously but has not secured a storage facility for those vehicles that enables inspection by the public.

5. Legal, Risk and Legislative Considerations

5.1. The City will execute a lease with H-TRAMS covering all aspects of the Society’s occupation of the land located at 20 McVilly Drive, Hobart.

5.2. The City will also negotiate and execute an agreement with H-TRAMS covering the provision of the heritage trams owned by the City and on display at the new Tram Garage and Display Facility once built.

5.3. Given the investment by the City, the ownership of the land and the inclusion of the City’s heritage trams in the display facility it is proposed that the Grant funding proposed in this report be provided on the condition that in the event the Hobart Tram Restoration and Museum Society ceases to exist all assets belonging to the Society become the property of the City of Hobart.

6. Discussion

6.1. Given the City’s ownership of a number of heritage vehicles, the previous investment in those vehicles and the high level of community interest, it is desirable for the assets to be publicly displayed.

6.2. H-TRAMS has also invested in the acquisition and refurbishment of different vehicles from the same fleet of historic trams.

6.3. The proposed Tram Garage and Display facility provides an opportunity to the City to have its trams displayed in a secure way and available for additional refurbishment.

7. Financial Viability

7.1. The City has invested significant funds in the previous acquisition and restoration of its heritage vehicles. The vehicles have however been in storage for many years and are only available for public viewing during specific events when they are transported from their storage facility.

7.2. The proposed establishment of a Tram Garage and Display Facility would give the earlier investment purpose, allow the progressive upgrade of the vehicles and make them available for public viewing at all times.

7.3. The land on which the Tram Garage and Display Facility is to be developed is owned by the City.

7.4. It is proposed that the funding required for the establishment of the new facility would be in the order of $2.2M. It is proposed that this funding be secured from external sources.

7.5. Asset Related Implications

7.5.1. Whilst the new Tram Garage and Display Facility would be leased to H-TRAMS, as the land is owned by the City, legal ownership of the improvement son the land will also be ‘owned’ by the City. This means the City will be required to include the facility on its balance sheet and account for the annual depreciation of the asset.

7.5.2. Such circumstances apply to numerous sporting facilities located throughout the City.

Kelly Grigsby

Chief Executive Officer

Date: 6 June 2023

File Reference: F23/31984

Item No. 18

Agenda (Open Portion)

Council Meeting

Page 1

19/06/2023

Motions of which notice has been given

IN ACCORDANCE WITH REGULATION 16(5) OF THE LOCAL GOVERNMENT (MEETING PROCEDURES) REGULATIONS 2015

18. United Nations Special Rapporteur Statement

File Ref: F23/60800

Councillor Elliot

Motion

“That Council:

1. note the statement (the Statement) from the United Nation’s Special Rapporteur on violence against women and girls, Ms Reem Alsalem, titled Allow women and girls to speak on sex, gender and gender identity without intimidation or fear: UN Expert, dated 22 May 2023 and

2. agree that women and girls must be able to constructively and respectfully and speak on issues of sex, gender and gender identity within the Council and in our community without fear or intimidation and

3. consider this Statement when safety, diversity and inclusion related frameworks, strategies and plans are reviewed or developed in the future, including future reviews of the City’s Community Inclusion and Equity Framework and Social Inclusion Strategy.”

Rationale:

“Ms Alsalem has released the Statement titled Allow women and girls to speak on sex, gender and gender identity without intimidation or fear: UN Expert provided as an Attachment.

https://www.ohchr.org/en/press-releases/2023/05/allow-women-and-girls-speak-sex-gender-and-gender-identity-without

Ms Reem Alsalem is the United Nations Special Rapporteur on violence against women and girls, its causes and consequence. She is an independent consultant on gender issues, the rights of refugees and migrants, transitional justice and humanitarian response and holds a Masters in International Relations and a Masters in Human Rights Law.

Ms Alsalem has consulted widely with UN departments, agencies and programs, including UN Women, UN Human Rights Office, UNICEF, as well as for NGOs, think tanks and academia. Previously, she worked as an international civil servant, serving with the UNHCR across 13 countries where she has planned and led programs that served to protect survivors of gender-based violence, particularly women and girls.

Ms Alsalem’s statement condemns threats and intimidation directed towards women and girls who express their opinions and beliefs associated with their sex and/or sexual orientation. Ms Alsalem states that women and girls who advocate for their needs and seek to discuss the definitions of and relationships between sex, gender and gender identity must be able to safely express their concerns.

Threats and intimidation of the nature warned against by Ms Alsalem has been experienced by members of the Hobart and broader Tasmanian community and has occurred in Hobart.”

Administration Response to Notice of Motion

Discussion

1. As stated in the Council’s Social Inclusion Policy, in alignment with the Universal Declaration of Human Rights, the Council recognises the fundamental right of every individual to participate socially, culturally, economically, physically, spiritually and politically in society. https://www.hobartcity.com.au/files/assets/public/council-meetings-aldermen/policies/policies-current/community-services-and-events/social-inclusion.pdf

2. Council commits to building social inclusion and actively reducing discrimination on the ground of any attribute listed under section 16 of the Anti-Discrimination Act 1998.

3. The City must comply with the Anti-Discrimination Act 1998 (Tas), where it is discrimination when a person is treated less favourably than other people because they have a particular characteristic, such as their age, race, sex or disability.

4. It is also discrimination when a person is disadvantaged compared to other people because they have a particular attribute. Attributes listed under the act are: • Age • Race • Disability • Irrelevant medical record • Gender • Gender identity • Intersex variations of sex characteristics • Breastfeeding • Pregnancy • Sexual orientation • Relationship status • Lawful sexual activity • Marital status • Family responsibilities • Parental status • Irrelevant criminal record • Religious belief or affiliation • Religious activity • Political belief or affiliation • Political activity • Industrial activity • Association with a person who has or is believed to have any of the other attributes.

5. The Australian Constitution does not expressly protect the freedom of expression and there are also limitations that can inhibit creative freedom in some situations, including defamation, anti-vilification, classification and censorship laws and the treason and urging violence offences.

6. The Sex Discrimination Act 1984 (SDA) makes it unlawful to treat people less favourably than another person in a similar situation because of their sexual orientation, gender identity or intersex status. https://humanrights.gov.au/sites/default/files/GPGB_sogiis_discrimination_0.pdf

7. Through the Community Safety Commitment, the City has committed to working collaboratively with community partners on initiatives that support the prevention of violence against women and their children with a focus on public advocacy and gendered drivers of violence.

8. All members of the community, including women and children, have a right to safely express their opinions and beliefs.

9. There is a clear need for community-wide activities that challenge attitudes condoning sexual violence against women. Words, policies and practice guidelines must promote respect for gender, sexuality and cultural diversity. The City must demonstrate zero tolerance of violence against any woman.

10. In the development of any new frameworks, policies or strategies, the City would continue to build social inclusion and actively reduce discrimination on the ground of any attribute listed under section 16 of the Anti-Discrimination Act 1998.

11. Any future strategy would be in line with the Capital City Strategic Plan 2019-2029 – 2.3.5 - Consider mental, physical and social health and wellbeing in the development of strategies, policies, projects and initiatives.

Strategic, Legislative and Policy Implications
Capital City Strategic Plan
Pillar:	2 – Community inclusion, participation and belonging.
Outcome:	2.2.3 Diversity in culture, nationality, ethnicity, race, gender, sexuality, ability, age, body, family, recreation, profession, personal strengths, income level, language, education, life experiences and more make up each of us and, together, make up our city. We recognise and embrace the rich complexity diversity brings to our lives—we are all part of creating Hobart’s identity. 2.2.1 We make Hobart the most inclusive city in the world, a city that welcomes all. 2.2.3 Provide and support activities and programs that celebrate diversity to reduce social isolation and build social cohesion. 2.3.5 Consider mental, physical and social health and wellbeing in the development of strategies, policies, projects and initiatives. 2.4.6 Deliver and support initiatives, activities and programs that build community resilience, wellbeing and safety.
Strategy:	A City for All: Community Inclusion and Equity Framework
Legislation and Policy
Legislation:	Anti-Discrimination Act 1998 (Tas) Local Government Act 1993 (Tas) Sex Discrimination Act 1984 Australian Human Rights Commission Act 1986
Policy:	Social Inclusion Policy

Financial Implications

1. There are no financial implications relating to this motion.

Attachment a: United Nations Special Rapporteur Statement - 22 May 2023