IPSWICH
CITY
COUNCIL
AGENDA
of the
Governance Committee
Held in the Council Chambers
2nd floor – Council Administration Building
45 Roderick Street
IPSWICH QLD 4305
On Tuesday, 17 March 2020
At 12.30pm or within any period of time up to a maximum of 10 minutes after the conclusion of the Environment Committee
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MEMBERS OF THE Governance Committee |
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Interim Administrator Steve Greenwood (Chairperson) |
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Governance Committee Meeting Agenda |
17 March 2020 |
Governance Committee AGENDA
12.30pm or within any period of time up to a maximum of 10 minutes after the conclusion of the Environment Committee on Tuesday, 17 March 2020
Council Chambers
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Item No. |
Item Title |
Page No. |
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1 |
Review of Policies - Corporate Services Department |
7 |
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2 |
Monthly Financial Performance Report - January 2020 |
25 |
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3 |
Overdue General Rates and Utility Charges - October to December 2019 |
34 |
** Item includes confidential papers
Governance Committee NO. 2
17 March 2020
AGENDA
1. Review of Policies - Corporate Services Department
This is a report concerning the continuing review of policies within the functional responsibility of Corporate Services Department.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
A. That the policy titled ‘Review of Statutory Decisions including Penalty Infringement Notices’ as detailed in Table 1, be adopted.
B. That the five (5) policies detailed below and outlined in Table 2, be repealed:
Ex-Gratia Payments Policy
Withdrawal of Infringement Notice Policy
Enterprise Risk Management Policy
Mail-out Postage Distribution Authorisation Policy
Damage to Private
or Commercial Property caused by trees on Council owned or controlled land
Policy
C. That the policy titled ‘Reward for Information Offered by Council’, be amended as detailed in Table 3.
2. Monthly Financial Performance Report - January 2020
This is a report concerning Council’s financial performance for the period ending 31 January 2020, submitted in accordance with section 204 of the Local Government Regulation 2012.
A budget amendment was approved by Council in February relating to a number of the variances noted below. The budget amendment will be reflected in February results.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
That the report be received and the contents noted.
3. Overdue General Rates and Utility Charges - October to December 2019
This is a report by the Treasury Accounting Manager dated 6 March 2020 concerning rate arrears and rate collection statistics for the period October-December 2019.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
That the report be received and the contents noted.
** Item includes confidential papers
and any other items as considered necessary.
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Governance Committee Meeting Agenda |
17 March 2020 |
ITEM: 1
SUBJECT: Review of Policies - Corporate Services Department
AUTHOR: Business Improvement Advisor (Policy)
DATE: 11 February 2020
This is a report concerning the continuing review of policies within the functional responsibility of Corporate Services Department.
That the Interim Administrator of Ipswich City Council resolve:
A. That the policy titled ‘Review of Statutory Decisions including Penalty Infringement Notices’ as detailed in Table 1, be adopted.
B. That the five (5) policies detailed below and outlined in Table 2, be repealed:
Ex-Gratia Payments Policy
Withdrawal of Infringement Notice Policy
Enterprise Risk Management Policy
Mail-out Postage Distribution Authorisation Policy
Damage to Private or Commercial Property caused by trees on Council owned or controlled land Policy
C. That the policy titled ‘Reward for Information Offered by Council’, be amended as detailed in Table 3.
There are no related parties associated with this report.
Listening, leading and financial management
Corporate Services Department is continuing to review policies that fall within its functional responsibility. The following policies have been identified as requiring action:
Table 1 – Policy for Adoption by Council
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Policy |
Reason for Adoption |
Attachment No. |
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Review of Statutory Decisions including Penalty Infringement Notices Policy |
The Complaints Management Unit has created a new policy for managing both the review of penalty infringement notices and charges placed against the land by Council. The policy was endorsed by the Executive Leadership Team at its 20 February 2020 meeting. |
1 |
Table 2 – Policies for Repeal by Council
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Policy |
Reason for Repeal |
Attachment No. |
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Ex-Gratia Payments Policy |
This policy has been reviewed and transitioned to an Administrative Directive as decisions on ex-gratia payments are within the legislative delegation of the CEO. The Administrative Directive was formally approved by the CEO on 28 February 2020. |
2 |
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Withdrawal of Infringement Notice Policy |
This policy will be superseded by the proposed Review of Statutory Decisions including Penalty Infringement Notices Policy. Accordingly, this policy is submitted for repeal subject to the adoption of the new policy detailed in Table 1. |
3 |
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Enterprise Risk Management Policy |
The CEO approved a new Administrative Directive titled Enterprise Risk Management Administrative Directive that replaces this policy. Accordingly, this policy is submitted for repeal. |
4 |
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Mail-out Postage Distribution Authorisation Policy |
Council’s Financial Management Policy is the head of power document that guides all departmental expenditure arrangements including mail-out postage distribution. Any revisions to Council’s budget are undertaken under the guidance of the head of power document. Accordingly, this policy is submitted for repeal as it is superfluous. |
5 |
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Damage to Private or Commercial Property Caused by Trees on Council Owned or Controlled Land Policy |
A review of this policy indicates that claims of this nature can more appropriately be addressed by the Insurance Claims against Ipswich City Council Administrative Directive and the Ex-Gratia Payments Administrative Directive. Accordingly, this policy is submitted for repeal. |
6 |
Table 3– Policy for Amendment by Council
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Policy |
Reason for Amendment |
Attachment No. |
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Reward for Information Offered by Council Policy |
When creating the supporting procedure to this policy, it was identified that a number of gaps existed in the document. Accordingly, the policy document has been amended (see track changes) and is submitted for adoption. |
7 |
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
The review of these policies has been undertaken in accordance with Council’s adopted Policy and Procedure Management Framework. Any delay in approving the recommendations of this report may potentially have adopted policies inconsistent with the Council Framework.
The review of all policies associated with the functions of the Corporate Services Department are being managed as part of the department’s operational budget for 2019-2020.
Consultation has been undertaken with relevant internal stakeholders in relation to the policies presented for repeal, amendment and adoption.
In accordance with Council’s adopted Policy and Procedure Management Framework, the Corporate Services Department is continuing to review policies under its functional responsibility to ensure that they meet Council’s standards of transparency and good governance.
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1. |
Review of Statutory Decisions including Penalty
Infringement Notices Policy ⇩ |
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2. |
Ex-Gratia Payments Policy ⇩ |
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3. |
Withdrawal of Infringement Notice Policy ⇩ |
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4. |
Enterprise Risk Management Policy ⇩ |
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5. |
Mailout Postage Distribution Authorisation Policy ⇩ |
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6. |
Damage to Private or Commercial Property caused by Trees
on Council Owned or Controlled Land Policy ⇩ |
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7. |
Reward for Information Offered by Council Policy - track
changes ⇩ |
Carol Dellit
Business Improvement Advisor (Policy)
I concur with the recommendations contained in this report.
Angela Harms
Governance Manager
I concur with the recommendations contained in this report.
Sonia Cooper
General Manager Corporate Services
“Together, we proudly enhance the quality of life for our community”
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Meeting Agenda |
17 March 2020 |
ITEM: 2
SUBJECT: Monthly Financial Performance Report - January 2020
AUTHOR: Manager, Finance
DATE: 27 February 2020
This is a report concerning Council’s financial performance for the period ending 31 January 2020, submitted in accordance with section 204 of the Local Government Regulation 2012.
A budget amendment was approved by Council in February relating to a number of the variances noted below. The budget amendment will be reflected in February results.
That the Interim Administrator of Ipswich City Council resolve:
That the report be received and the contents noted.
There are no related party matters associated with this report.
Strengthening our local economy and building prosperity
The attached report shows the financial results for Ipswich City Council as at 31 January 2020. As noted above, this is a report as at 31 January 2020 and accordingly the budget amendment adopted by Council on 24 February 2020 is not reflected in the report. The budget amendment took into consideration and amended for, a number of the variances highlighted in this report which have been discussed in previous reports to Council.
The total Net Result (including capital revenues) is $66.1 million compared to the YTD budget of $59.1 million. Council’s YTD operating surplus (excluding capital revenue) is approximately $3.5 million compared to the YTD budget deficit of $3.5 million (the full year budget surplus is $2.6 million). Additional operating revenue of $5.3 million YTD for items including QUU tax and dividends and operational grants has driven the current positive position.
Capital expenditure including the CBD Redevelopment as at 31 January is $1.2 million below the YTD budget. Approximately $129.1 million has been expended or donated to 31 January compared to the current YTD capital budget of $130.3 million.
Commentary and analysis of the results is included in the attached report. Items to note include:
• Council’s rates and utility charges continue to be impacted by lower than forecast growth (especially from Quarter 4 in the 18-19 financial year). YTD January results show that growth has not recovered and it is unlikely that Council will recover full budget by year end. Accordingly a budget amendment was approved by Council in February to reduce the rates budget.
· Town Planning Fees are under budget YTD $557k following a slight improvement in the January results ($282k), it is expected that town planning fees will be below budget by the end of the financial year and this was also adjusted for in the budget amendment.
• Employee expenses continue to be over budget due to additional labour contracts to fill staff vacancies and support, the impact of EBA rate increases on leave provisions and contractual payments.
• Materials and services expenses continue to be below budget as a result of underspends in service contracts due earlier weather conditions, works not commencing as expected and lower than expected maintenance costs. An analysis of the timing of expenditure in prior years has identified significant additional expense recognition in June each year. Therefore as part of the budget amendment finance will re phase some of the YTD variance into later months in the financial year to better align with expected recognition.
• Whilst the capital expenditure on the CBD Redevelopment has exceeded the YTD budget by $9.6 million, the timing of the cash flow for the project over the 19-20 and 20-21 financial years has been reviewed to better align with the project schedule. Required changes have been approved in the February budget amendment.
• Capital expenditure on other capital projects, including the ICT and Infrastructure programs, are $15.3 million below YTD budget. The capital program delivery schedule and forecast expenditure by the end of the financial year has been reviewed and a reduction in capital expenditure across Council has been approved in the February budget amendment.
• Considering the results above, cash currently held is slightly above forecasted cash balances.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Regulation 2012
The implications of the financial results YTD will be monitored by management and any changes or risks to Council’s forecast position will be considered as part of Council’s budget amendments.
As highlighted above there is a risk to Council’s forecast rates and utility charges revenue and town planning fees as a result of lower than forecast growth (especially from Quarter 4 in the 2018-2019 financial year). Year to date this has not been recovered and accordingly a budget amendment was included to reduce the applicable budget.
Employee expenses and deferred capital projects were also included in the February budget amendment.
There are no specific implications as a result of this report.
The contents of this report did not require any community consultation. Analysis and explanations of the variances is undertaken in conjunction with the various Departments.
The monthly performance report for January 2020 is included at Attachment 1.
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1. |
Monthly Performance Report - January 2020 ⇩ |
Jeffrey Keech
Manager, Finance
I concur with the recommendations contained in this report.
Sonia Cooper
General Manager Corporate Services
“Together, we proudly enhance the quality of life for our community”
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Governance Committee Meeting Agenda |
17 March 2020 |
ITEM: 3
SUBJECT: Overdue General Rates and Utility Charges - October to December 2019
AUTHOR: Treasury Accounting Manager
DATE: 11 March 2020
This is a report by the Treasury Accounting Manager dated 6 March 2020 concerning rate arrears and rate collection statistics for the period October-December 2019.
That the Interim Administrator of Ipswich City Council resolve:
That the report be received and the contents noted.
There are no related party issues concerning this report.
This report highlights the overdue rates and charges pertaining to the October – December 2019 rating period.
Following the completion of the October-December 2019 rating period, the approximate balance of overdue rates and charges was $6,002,508 or 2.55% of the total rates. This represents an increase in outstanding balances of $526,183 or 0.2% from the previous quarter.
A high level breakdown of the overdue rates and charges between residential, non-residential properties and highlighting the large arrears on two disputed properties is below:
Table 1
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# of Properties |
Balance Outstanding $ |
% of Total |
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Residential |
6,869 |
$3,854,337 |
64% |
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Non-Residential |
174 |
$330,714 |
6% |
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2 Disputed Non-Residential Properties |
2 |
$1,817,457 |
30% |
Overdue Rates and Charges:
Table 2
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|
Yearly Levies |
Arrears $ End of quarter |
Arrears% |
Total Assessments |
Assessments in Arrears End of quarter |
% in Arrears |
|
June 2015 |
$175,942,886 |
$2,764,243 |
1.57 |
72,515 |
4,949 |
6.82 |
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June 2016 |
$189,635,715 |
$3,034,312 |
1.60 |
75,207 |
5,090 |
6.77 |
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June 2017 |
$205,419,598 |
$3,680,474 |
1.79 |
78,689 |
6,067 |
7.71 |
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June 2018 |
$218,794,862 |
$4,929,782 |
2.25 |
82,232 |
6,089 |
7.40 |
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June 2019 |
$231,646,878 |
$5,614,100 |
2.42 |
84,911 |
7,355 |
8.66 |
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Sept 2019 |
$233,519,322 |
$5,476,325 |
2.35 |
85,845 |
6,441 |
7.59 |
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Dec 2019 |
$235,396,875 |
$6,002,508 |
2.55 |
86,284 |
7,045 |
8.16 |
The current rates arrears exceeding target are impacted by the following:
1. Two (2) properties have substantial arrears and are in dispute with Council. The rates arrears associated with these two properties represents 0.77% of the total yearly levies and account for 30.27% of the total rate arrears.
2. The percentage of accounts in arrears has deteriorated since mid-2017 due in the most part to these two substantial properties transitioning. If the two properties were removed from the rate arrears calculation, Council’s performance for the quarter would be 1.78% (leading practice for local government recoveries). The two properties are represented as black in Chart 1 below.
Chart 1
Arrears - Number of Assessments:
· At the end of the October-December 2019 quarter, 7,045 assessments remained in arrears.
· Of those, 5,978 or 85% assessments held balances outstanding of less than $1000, including 3,196 or 45% with outstanding balances of less than $100.
Reminder Letters:
Table 3
|
Quarter |
Reminder letters |
$ |
Second letter |
$ |
|
April - June 2015 |
8,634 |
$5,117,628 |
3,888 |
$2,320,978 |
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April - June 2016 |
9,776 |
$5,767,789 |
4,247 |
$2,375,731 |
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April-June 2017 |
11,102 |
$6,214,851 |
4,950 |
$3,023,858 |
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April-June 2018 |
10,264 |
$6,566,455 |
5,561 |
$4,505,858 |
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April-June 2019 |
11,387 |
$7,346,791 |
5,921 |
$4,208,937 |
|
July-September 2019 |
12,072 |
$7,944,841 |
5,205 |
$3,955,289 |
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October-December 2019 |
12,096 |
$8,487,729 |
5,246 |
$3,933,342 |
Chart 2 shows the trends for the last six quarters in relation to owner occupied and non‑owner occupied residential properties. The mix between owner and non-owner properties in arrears is broadly similar to the mix in total properties. The data used in this chart excludes those properties with very large arrears and are the subject of disputes (referenced earlier in this report). This allows for a visual representation of the underlying trends for the typical owner and non‑owner occupied residential properties.
Whilst the number of properties in arrears continues to be cyclical there is still upward trend which is also reflecting the total value of the arrears. This requires further analysis to understand what may be driving this trend.
Chart 2
The following Chart 3 shows the trend for the last six quarters in relation to pensioner owned properties, including both owner occupied and non-owner occupied residential properties, as well as a limited number of primary producer properties. The trend relating to pensioner owned properties are generally similar to that of the non-pensioner owned properties other than the last quarter where there continued to be a small increase. The 275 properties in the most recent quarter reflects 3.2% of total pensioner owned properties. This compares to 7.6% of total properties.
Chart 3
Table 4 is a combined list of:
1. the top 10 suburbs by number of properties within a Suburb with an outstanding balance; plus
2. the top 10 Suburbs by % of properties within a Suburb with an outstanding balance (noting that four suburbs appear on both lists).
Most of the suburbs listed, display a similar trend with the exception of South Ripley which has been influenced by a single property owner who holds a number of properties with arrears. The top 10 suburbs by number of properties within a suburb with an outstanding balance has remained same for the past five quarters.
Table 4
Legal Actions undertaken to recover Rates:
The following actions were commenced, or finalised on behalf of Council during the October‑December quarter 2019:
|
Action |
Number |
Value |
|
New Claims Filed |
39 |
$143,707 |
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Filed Claims Paid in full prior to Judgement |
7 |
$20,336 |
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Defences Lodged |
1 |
$5,724 |
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Defences Resolved |
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|
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Defences under Legal Dept. Control |
4 |
$445,249 |
|
Judgments Granted |
27 |
$70,583 |
|
Sale of Land Resolutions |
10 |
$81,165 |
|
Rates paid prior to Auction during the quarter |
2 |
$17,314 |
|
Properties Auctioned |
0 |
0 |
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Properties Sold at Auction |
0 |
0 |
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Properties purchased by Council at Auction |
0 |
0 |
Planned Actions:
· Continue to apply collection strategies to non-owner occupied properties i.e. companies, trusts, vacant land, investment properties.
· Continue to apply collection strategies to habitual defaulters.
· Continued close maintenance of payment plans and escalation of breaches.
· Continued drive to liaise with banks and finance providers for payments in full.
· Continue to analyse emerging trends that are impacting the collection of overdue rates.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Regulation 2012
The target arrears percentage rate of 2.00% was exceeded by 0.55%, due to the impact of two properties with substantial rates arrears. There is a continuing upward trend in the number of residential properties with an outstanding balance as well as the value of those outstanding balances.
Paul Mollenhauer
Treasury Accounting Manager
I concur with the recommendations contained in this report.
Jeffrey Keech
Manager, Finance
I concur with the recommendations contained in this report.
Sonia Cooper
General Manager Corporate Services
“Together, we proudly enhance the quality of life for our community”
