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RESOLVED: The
Mayor, Councillor Greene and Councillor Katris
1. Financial
Sustainability
(a) That
Council acknowledge the concerns expressed by the Audit Risk and Improvement
Committee at its July 2020 meeting, over the projected operating and cash
flow deficits and that the estimates indicate that Council will not be
financially sustainable and this will expose Council to significant risks to
service delivery, governance and reputation.
(b) That
Council note the Audit Risk and Improvement Committee has recommended that
Council consider measures to immediately address the key financial
sustainability risk, particularly in regard to increasing revenues to secure
Council’s immediate and long term future.
(c) That
Council notes the forecast operating financial sustainability issues have
accelerated from original estimates due to COVID-19 higher than anticipated
costs and reduced income in 2019/20 and 2020/21.
(d) That
Council note the findings of the NSW Productivity Commission December 2020
report, that the average rates per capita in NSW ($591 in 2019) are
significantly lower than the average for all other states ($835) and for
Georges River ($454).
2. Community
Engagement
(a) That
Council notes the outcome of the comprehensive and thorough community
engagement program during 2019 and 2020 for the proposed New Rates 2021,
which:
i. Affirmed
strong community support for a single rating system including support for the
minimum rates for business and residential as proposed in 2020, including
100% support by members of the Citizen Advice Group and 89% of webinar
participants; and
ii. Demonstrated
a multi-year Special Rate Variation of 5.8% in
2021/22 (3.3% Special Rate Variation and 2.5% assumed rate peg), followed by
5.8% per year for 4 years has considerable community support, including 100%
support by members of the Citizen Advice Group and 65% of webinar
participants in 2020.
(b) That
Council note the community’s lack of support for a reduction in the
level or standard of services provided by Council.
(c) That
Council adopt the revised Long Term Financial Plan within the Resourcing
Strategy.
3. IPART
Applications
(a) That
consistent with community support and desire for a fairer and more equitable
rate structure, Council submits a Minimum Rate application to the Independent
Pricing and Regulatory Tribunal (IPART) to harmonise the residential minimum
rates for rateable residential properties to $965.80.
(b) That
consistent with community support and desire for a fairer and more equitable
rate structure, Council submits a Minimum Rate application to IPART to
harmonise the ordinary business minimum rates for rateable business
properties to $1,100.
(c) That
consistent with community support and desire for a fairer and more equitable
rate structure, Council submits a Minimum Rate application to IPART to
harmonise the business subcategory minimum rate for the Strategic Centres of
Kogarah and Hurstville to $1,500.
(d) That
consistent with community support and desire for a fairer and more equitable
rate structure, Council submits a SRV application to IPART to seek a
permanent increase to general permissible rate income of 5.8% per year for 5
years (comprising 3.3% SRV and an assumed IPART rate peg of 2.5% per year).
(e) That
consistent with the adopted Budget Strategy since 2016, and in conjunction
with the SRV application, Council continues to identify operating savings
and/or additional operating income of $12 million to establish a financially
sustainable future for Georges River Council.
(f) That
Council adopts the submissions to IPART, as attached to this report:
· IPART
Application form Part A Special Variation 2021/22;
· IPART
Application form Part B Special Variation 2021/22;
· IPART
Application form Part A Minimum Rate Increase 2021/22; and
· IPART
Application form Part B Minimum Rate Increase 2021/22.
(g) That
the Council website is updated with a link for community members to continue
to provide feedback on the proposed rating system application, while it is
being assessed by IPART.
(h) That
Council note that the IPART applications are required to be submitted before
9 February 2021.
(i) That
the General Manager be delegated authority to undertake any necessary minor
administrative or editorial changes, to the submission to IPART.
4. Service/Staff
Reductions and Deletions
(a) That
should Council not proceed with the IPART application to increase the total
rate income the General Manager immediately proceed with the reduction in
services including the removal of 40 staff positions across the service areas
identified in this report.
5. Exposure
Draft Bill
(a) That
Council note the Exposure Draft of a Bill on the local government rating
system does not include any options that would resolve Council’s
financial challenges.
(b) That
the General Manager prepare a report to Council following the introduction of
the Draft Bill to Parliament (estimated March/April 2021), on any financial
options that may become available for inclusion in Council’s draft
2021/22 Budget process.
Record of Voting:
For the Motion: The
Mayor, Councillor Greene, Deputy Mayor, Councillor Agius and Councillors
Badalati, Elmir, Grekas, Katris, Konjarski, Landsberry, Liu, Payor, Symington
and Tegg.
Against the Motion: Councillors
Hindi (abstained) and Kastanias.
On being put to the Meeting,
voting on this Motion was twelve (12) votes FOR and two (2) votes AGAINST.
The Motion was CARRIED.
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