AUTHOR RECOMMENDATION


THAT in accordance with the provisions of Part 1 of Chapter 4 of the Local Government Act, 1993, the matters dealt with in this report are to be considered in Committee of the Whole (closed Council Meeting) at which the press and public be excluded. Specifically, the matters to be dealt with pursuant to Clause 10A relate to commercial financial information and pursuant to Sub Clause (2)(d) are regarded as being commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it, confer a commercial advantage on a competitor of the Council, or reveal a trade secret.

FURTHER, THAT in accordance with the provisions of Section 11(2) of the Local Government Act, 1993, the reports and correspondence relating to this matter be withheld from the press and public.


RESOLUTION - ECM


THAT in accordance with the provisions of Part 1 of Chapter 4 of the Local Government Act, 1993, the matters dealt with in this report are to be considered in Committee of the Whole (closed Council Meeting) at which the press and public be excluded. Specifically, the matters to be dealt with pursuant to Clause 10A relate to commercial financial information and pursuant to Sub Clause (2)(d) are regarded as being commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it, confer a commercial advantage on a competitor of the Council, or reveal a trade secret.

FURTHER, THAT in accordance with the provisions of Section 11(2) of the Local Government Act, 1993, the reports and correspondence relating to this matter be withheld from the press and public.

ECM005-10	PROPERTY MATTER - LAND CLASSIFICATION OF 320 FOREST ROAD, HURSTVILLE
Report Author/s	Guy McDonald
File	C08/16

EXECUTIVE SUMMARY

Through compulsory acquisition for the provision of a new Bus Interchange, Council obtained 320 Forest Road, Hurstville on 12 March 2010. It is proposed to classify the property as Operational Land.


AUTHOR RECOMMENDATION

THAT Council publicly notify its intention to classify the land at 320 Forest Road, Hurstville as Operational Land, with the text of the notification as noted in the body of the report.


REPORT DETAILS


Hurstville City Council intends to design and construct a Bus Interchange on the site of Woodville Lane and adjacent five properties located at 320 to 328 Forest Road, Hurstville. Upon gazettal of the compulsory acquisition of 320 Forest Rd, Hurstville on 12 March 2010, Council became the owner of this property.

Classification of Land

On 27 August 2008, Council resolved to classify the four previously acquired properties for the Bus Interchange located at 322, 324, 326 & 328 Forest Road as Operational Land. It is proposed that the fifth property for the Bus Interchange located at 320 Forest Road, Hurstville be similarly classified.

The Local Government Act (Subsections 31(2) and 34(1) requires that should Council wish to classify newly purchased properties as Operational, the proposal be publicly advertised for a minimum period of 28 days and Council so resolve before or within 3 months after acquiring the land.

Public Notification

It is proposed that an advertisement should be placed in the St George and Sutherland Shire Leader on 13 April 2010. The text of the notification should be as shown below.

"Classification of Land
In accordance with the requirements of Section 34 of the Local Government Act 1993, notice is hereby given that Council proposes to resolve to classify the undermentioned land as "operational land" pursuant to Section 25 of the Local Government Act.

Property: Lot B1, Deposited Plan 414310, No 320 Forest Road, Hurstville

A plan identifying the above-mentioned properties is available for inspection at the Customer Service Counter, Ground Floor, Civic Centre, MacMahon Street, Hurstville for a period of 28 days until 11 May 2010.

Submissions in respect of the proposal must be made and lodged with Council by no later than 11 May 2010 ."

EXECUTIVE SUMMARY

In accordance with Section 405 of the Local Government Act 1993, Council's Draft Management Plan 2010-2014 and Draft Schedule of Fees & Charges 2010-11 have been prepared for the purpose of public exhibition for Council's consideration. Copies of these documents are attached.

AUTHOR RECOMMENDATION

THAT Council consider the submission received from Councillor Anne Wagstaff following the Councillor Workshop on 17 March 2010 regarding stormwater drainage management and a levy.

THAT Council approve the public exhibition of the Draft Management Plan 2010-2014 and the Draft Schedule of Fees & Charges 2010-2011 for a period of 30 days between 13 April and 12 May 2010. The Draft Management Plan 2010-2014 and the Draft Schedule of Fees & Charges 2010-2011 is exclusive of any drainage levy. .

THAT Council endorse the Director Administration to make minor modifications to any numerical, typographical, interpretation and/or formatting adjustments, if required, in the finalisation of the Draft Management Plan and Draft Schedule of Fees & Charges.

FURTHER, THAT following the exhibition period, a further report be presented to the Council Meeting to be held on 26 May 2010, advising of any submissions received relating to the Draft Management Plan 2010-2014 and/or Draft Schedule of Fees & Charges 2010-2011.

REPORT DETAILS

Background

The Management Plan is one of Council's most important strategic documents. It provides an overview of the major activities, services and projects to be delivered over the next four years, together with resources needed to deliver them. The Draft Management Plan 2010-14 presents a work program for the next four years, is supported by sound financial management and has been put together with input from Councillors.

A Councillor Workshop entitled 'Development Control Plan (DCP) and Budget Development Planning Weekend', was held on 26, 27 and 28 November 2009 to consider priorities for the next four years. Councillors considered presentations made by staff on current projects and future options including the City Centre DCP, Long Term Financial Model, Strategic Asset Management, Infrastructure Plus, CBD Masterplan, Commercial Property and the Strategic Management Process. The direction set by Council has informed the preparation of the Draft Management Plan 2010-2014.

Subsequently staff discussions were held in November and December 2009 to develop the operational programs, services, actions and projects together with their financial implications.

A further three Councillor Workshops were held in February and March 2010 to update Councillors on progress with the Management Plan, Budget and Fees & Charges, seeking feedback at each stage.

Submission

Following the last Councillor Workshop on 17 March 2010, a submission was received from Councillor Anne Wagstaff which contained the following recommendation:

I would like to see all references to stormwater drainage management and a levy (as outlined below) that are in Version 1, but were subsequently removed in Version 1a (on which you would like councillors to provide feedback) be re-placed in the final draft management plan to be considered at the Extraordinary Council meeting next week.

Under MAJOR INITIATIVES:

STORMWATER MANAGEMENT

Hurstville Local Government Area was developed during the early years and following World War II. Due to aging and techniques used at the time the drainage system needs improving and replacing.

The NSW Government has recognised that local councils have taken on a major role in stormwater management without additional income. So, in October 2005, the NSW Government amended the Local Government Act to allow councils the option of levying a
Stormwater Management Service Charge for this very purpose.

Stormwater is water that flows down our gutters and drains when it rains. While new developments are often designed to detain water, there is still a considerable amount of run-off collected from exiting driveways, roofs, roads and pavements. This generates a
substantial amount of water flowing into the drainage network that needs to be managed. Council has been managing stormwater maintenance from general funds for many years.

Stormwater Management requires ongoing planning, construction and maintenance to reduce the impact of localized flooding, reduce pollution from developed areas reaching waterways, collect stormwater for reuse as irrigation on, for example, playing-fields, golf courses. It will reduce erosion of creeks, improve the general drainage system and educate businesses, residents and industries on stormwater issues.

Council is proposing to introduce a Stormwater Levy effective from 1 July 2010 which will apply to all commercial and residential property. The levy will generate approximately $687, 000 each year and be used for stormwater management.

The Annual Residential Charge will be $25 per property (approx. 50c per week) and the Annual Residential Strata Charge of $12.50 per property (approx. 25c per week). For businesses the Annual Business Charge will be $25 per property plus an additional $25 for each 350 square metres or part of 350 square metres by which the area of the parcel of land exceeds 350 square metres.

The project details are shown as Drainage Levy Works under Capital Works and Asset Replacement Schedule.

Under FINANCIAL SUMMARY:

Adjust the pie table '2010/11 Total income $64.826m' in Version 1a, to reflect the income provided by a Stormwater Management levy, as indicated in the pie table '2101/11 Total income $65.513m' in Version 1, which represents an increase in council's income, which is always a good thing.

Under REVENUE POLICY:

STORMWATER MANAGEMENT SERVICE CHARGES
During the 2010/2011 year Council will levy a charge on rateable residential and business categorised land for stormwater
management services.
Rate Type Category Minimum Rate Total Yield
Ordinary Residential Non Strata Assessment 25.00 $ 467,375
Ordinary Residential Strata Assessment 12.50 $ 110,075
Ordinary Business Non Strata Assessment 25.00 $ 92,925
Ordinary Business Strata Assessment 12.50 $ 11;437
Ordinary Mixed Development Assessment 25.00 $ 5,675
TOTAL ORDINARY RATE YIELD $687,487

Under CAPITAL WORKS AND ASSET REPLACEMENT SCHEDULE:

Description Stormwater Management Levy works
Draft Budget 2010/11 687,000
Forecast 2011/12 687,000
Forecast 2012/13 687,000
Forecast 2013/14 687,000

and adjusting the Total Transport, Traffic Infrastructure Horizon accordingly.

If the quickest and best way to fix the stormwater drainage system is to apply a levy, then I believe it needs to be done. If a levy means that the stormwater drainage issues affecting the residents and ratepayers will be addressed, then Council should consider such a levy.

The attached Draft Management Plan 2010-2014 and the Draft Schedule of Fees & Charges 2010-2011 does not include a drainage levy or any assoociated works.

Financial Impact

Whilst the global economic downturn had an adverse impact on the 2009/10 Adopted Budget, the Draft Budget 2010/11 shows a return to Operating and Cash Funding surpluses.

Major variances from the Adopted 2009/10 Budget to the Draft 2010/11Budget include the following:

1) Increase in Depreciation of $1.3M - This is due largely to the Infrastructure Asset revaluation currently being completed by Council in line with the DLG Guidelines. It is expected a significant increase in value at the end of 2010/11 will in turn require the budgeted increase in depreciation expense in 2010/11.

2) Increase in Utilities Charges (Street Lighting) of $385k - This reflects the possible increase to Council for the provision of Street Lighting following the Australian Energy Regulator's (AER) Draft Decision on the re-determination of street lighting pricing for 2009-2014. Council-specific impacts have not been outlined in the Draft Decision but it suggests an average 54% increase in street lighting capital and maintenance costs from 1 July 2010 (when an adjustment for 2009/10 pricing is taken into account).

3) Hurstville Aquatic Leisure Centre Redevelopment - Included in the 2010/11 and 2011/12 budget is the expansion of the Hurstville Aquatic Leisure Centre. This project is expected to be in the order of $5M and is to be funded from external borrowings. Of the $5M loan, $3M is forecast to be spent in 2010/11, with the balance to paid out during 2011/12.

Exhibition

In accordance with Section 405 of the Local Government Act 1993, it is required that the Draft Management Plan 2010-2014 and Draft Schedule of Fees & Charges for 2010/11 be placed on public exhibition for 30 days. It is recommended that the exhibition period extend commence 13 April and conclude 12 May 2010.

The community will be notified of the public exhibition process by an advertisement to be placed in The Leader.Copies of the Draft Management Plan 2010-14 and Draft Schedule of Fees & Charges 2010/11 will be posted on Council's website and displayed at the Customer Service Centre, Civic Centre; Hurstville City Library; and Penshurst Library.

Post Exhibition

Following the exhibition period, a further report will be presented to the Council Meeting to be held on 26 May 2010, advising of any submissions received in relation to the documents.

It will be recommended that Council at that time consider the adoption of the final Management Plan 2010-2014 and the Schedule of Fees & Charges 2010/11, having regard to any submissions received.

RESOLUTION - ECM

RESOLVED THAT Council approve the public exhibition of the Draft Management Plan 2010-2014 and the Draft Schedule of Fees & Charges 2010-2011 for a period of 30 days between 13 April and 12 May 2010. The Draft Management Plan 2010-2014 and the Draft Schedule of Fees & Charges 2010-2011 is exclusive of any drainage levy. .

THAT Council endorse the Director Administration to make minor modifications to any numerical, typographical, interpretation and/or formatting adjustments, if required, in the finalisation of the Draft Management Plan and Draft Schedule of Fees & Charges.

FURTHER, THAT following the exhibition period, a further report be presented to the Council Meeting to be held on 26 May 2010, advising of any submissions received relating to the Draft Management Plan 2010-2014 and/or Draft Schedule of Fees & Charges 2010-2011.