Summary of Extraordinary Council Meeting Thursday 29 June 2023

Published on 30 June 2023

Councillors met in Cooma yesterday afternoon for an Extraordinary Council Meeting.

Councillors Frolich and Hopkins attended by audio-visual link.

The following matters were discussed at the meeting:

6.1.1 Making of the 2023-2024 Annual Rates and Charges

That Council approves the making of the rates and charges separately for each category and sub-category as follows;

Making of the Levy of Ordinary Rates for Snowy Monaro Regional Council

A. For the year 2023/2024, in accordance with Section 518 of the Local Government Act 1993, Council make an Ordinary Rate of 0.00172065 rate in the dollar on the land value. In accordance with Section 499 of the Local Government Act 1993, Council make a base amount of $496.87 per assessment being 5.38% of the total amount payable on all rateable land categorised as Business. This rate is to be named Business.

B. For the year 2023/2024, in accordance with Section 518 of the Local Government Act 1993, Council make an Ordinary Rate of 0.00430414 rate in the dollar on the land value. In accordance with Section 499 of the Local Government Act 1993, Council make a base amount of $1,242.17 per assessment being 1.67% of the total amount payable on all rateable land categorised as Business Electricity Generation. This rate is to be named Business Electricity Generation.

C. For the year 2023/2024, in accordance with Section 515 of the Local Government Act 1993, Council make an Ordinary Rate of 0.00172065 rate in the dollar on the land value. In accordance with Section 499 of the Local Government Act 1993, Council make a base amount of $496.87 per assessment being 32.24% of the total amount payable on all rateable land categorised as Farmland. This rate is to be named Farmland.

D. For the year 2023/2024, in accordance with Section 517 of the Local Government Act 1993, Council make an Ordinary Rate of 0.00430414 rate in the dollar on the land value. In accordance with Section 499 of the Local Government Act 1993, Council make a base amount of $1,242.17 per assessment being 0% of the total amount payable on all rateable land categorised as Mining. This rate is to be named Mining.

E. For the year 2023/2024, in accordance with Section 516 of the Local Government Act 1993, Council make an Ordinary Rate of 0.00172065 rate in the dollar on the land value. In accordance with Section 499 of the Local Government Act 1993, Council make a base amount of $496.87 per assessment being 60.71% of the total amount payable on all rateable land categorised as Residential. This rate is to be named Residential.

Levy of Rates

F. That the rates as made be levied for the 2023/2024 year by service of a Rates and Charges Notice pursuant to section 546 of the Local Government Act 1993.

Interest

G. In accordance with section 566(3) of the Local Government Act, it has been determined that the maximum rate of interest payable on overdue rates and charges for the period 1 July 2023 to 30 June 2024 (inclusive) will be 9.0% per annum.

Waste Management

That in accordance with Section 496, Section 501 and Section 502 of the Local Government Act 1993, Council make an Annual Charge for Waste Management Services.

Waste Management Charge	$133.90
Domestic Waste Collection Service	$280.65
Domestic Waste Collection – Upsize to 240L Bin from 120L Bin	$168.18
Domestic Recycling Collection Service	$183.39
Domestic Food and Garden Organic Collection Charge (Cooma-Monaro Region ONLY)	$67.60
Domestic Waste Vacant Land Charge	$21.00
Change over Domestic Bin Charge (per event)	$37.49
Bank of Bins Charge	$267.80
Wheel Out/Wheel In Service	$951.23
Commercial Waste Management
Adaminaby/Bredbo/Bombala/Delegate/Nimmitabel/ Michelago Areas (If Kerbside Collection Services are provided)
240L Bin	$494.89
360L Bin	$739.13
All other areas	Per fees & charges
Commercial Recycling Management
Adaminaby/Bredbo/Bombala/Delegate/Nimmitabel/ Michelago Areas (If Kerbside Collection Services are provided)	$331.21
All other areas	Per fees & charges
Commercial Food and Garden Organic Management
Cooma-Monaro Region	$155.32
All other areas	N/A

Liquid Trade Waste

That in accordance with Section 501 of the Local Government Act 1993, Council make an annual Liquid Trade Waste Charge per annum for where the program exists.

Classification “A” Charging Category 1 – Low Risk	$250.00
Classification “B” Charging Category 1 – Low Risk	$280.00
Classification “A” Charging Category 2 – Medium Risk	$960.00
Classification “B” Charging Category 2 – Medium Risk	$960.00
Classification “S” Charging Category 2 - Dischargers of Chemical Toilet Waste	$110.00
Classification “B” Charging Category 1 – High Risk/Industrial	$1,900.00

Stormwater management

In accordance with Section 496A of the Local Government Act 1993, Council levy an annual Stormwater Management Charge of $20 per annum for each parcel of rateable (occupied) land for which the service is available within the former Bombala Council area.

Onsite Sewer Management System

This renewal fee will apply to all onsite sewage management systems and will be charged on the annual rates notice. The 2023/2024 fee will be $30.00.

Residential Water and Sewer

That in accordance with section 501 and 502 of the Local Government Act 1993, Council make and annual Residential Water Access Charge of $288.00 per annum, connected or unconnected.

Water

Residential and Non-Residential Usage Charge of $3.43 per Kilolitre, per annum.

Sewer

That in accordance with Section 501 and 502 of the Local Government Act 1993, Council make an annual Residential Sewer Access Charge of $1,008.00 per annum, connected or unconnected.

Water and Sewer

With reference to Best Practice Management of Water Supply and Sewerage, Council make an annual Water Access Charge for properties based on meter size.

*Water Annual Access Charge*
*Meter Size*	*Vacant*	*20mm*	*25mm*	*32mm*	*40mm*
*2023-24*	$288.00	$288.00	$450.00	$735.00	$1,149.00

*Water Annual Access Charge – Continued*
*50mm*	*65mm*	*75mm*	*80mm*	*100mm*	*150mm*
$1,794.00	$3,033.00	$4,038.00	$4,593.00	$7,176.00	$16,146.00

With reference to Best Practice Management of Water Supply and Sewerage, Council make an annual Sewer Access Charge for properties based on meter size.

*Sewer Annual Access Charge*
*Meter Size*	*Vacant*	*20mm*	*25mm*	*32mm*	*40mm*
*2023-24*	$1,008.00	$1,008.00	$1,575.00	$2,580.00	$4,032.00

*50mm*	*65mm*	*75mm*	*80mm*	*100mm*	*150mm*
$6,300.00	$10,644.00	$14,172.00	$16,124.00	$25,194.00	$56,686.00

Sewer Usage Charge – Non Residential

Non-Residential Usage Charge of $1.13 per kilolitre with discharge factor of 0.6 based on water meter readings multiplied by the discharge factor. Where the reading is taken directly from a Sewer Flow Meter, the discharge factor shall not apply.

Pipes, Rails and Structures

That in accordance with the provisions of Section 611 of the Local Government Act 1993, Council may make an Annual Charge for any rail, pipe, wire, pole, cable, tunnel or structure laid, erected, suspended, constructed or placed on, under or over a public place.

The annual charge for 2023-24 shall be:

A. Under a public place $742 per kilometre

B. On or over a public place $154 per pole or structure

Cr Mitchell moved the motion, conceding the difficulty of the decision before Council, but stressing the necessity of approving and passing on the special rate variation.

Cr Williamson spoke against the motion. He expressed concerns about the insufficiency of Council’s actions – inclusive of those recommended by the Financial Sustainability Review – to address its financial performance and position before resorting to a rate variation. He was also critical of the documentation and information provided to councillors about the budget, its affordability and its impact on Council’s unrestricted cash position.

Cr Williamson concluded with remarks stating that the community’s ability to afford this increase to rates has worsened, and reiterated his interpretation of the community consultation: that the majority of ratepayers do not support an increase to rates. He was pleased, however, that additional rate revenue generated by the SRV would be placed in a separate fund to general rate revenue.

Cr Summers disagreed with Cr Williamson. She stated that Council has made progress on the recommendations of the Financial Sustainability Review, and pointed out that the Review highlighted the need for Council to improve its cashflow.

Cr Summers refuted Cr Williamson’s interpretation of the financial documents to which he referred in his remarks, and his interpretation of community sentiment around the rate increase.

She stressed the necessity of this course of action to continue to provide the Council services that the community relies on, and that the community understands this.

Cr Stewart spoke for the motion, but articulated his understanding for Cr Williamson’s points. He stated that while there is still room for efficiency improvements at Council, 2023/24’s rate rise is reasonable.

Cr Stewart urged councillors to continue to work to improve the organisation’s service delivery, and not apply future years of the approved rate rise unless it was necessary.

Cr Frolich spoke against the motion, stating her support of much of what Cr Williamson had said in his remarks. She specifically highlighted the timing and affordability of the proposed rate increase as concerns.

She continued, saying the community wants greater transparency on Council service reductions – how the organisation is going without at a time when the community is going without.

Cr Beer was for the motion, speaking plainly to say that no one likes putting rates up or paying higher rates – but in this case it is a necessity. He highlighted representations from the NSW Government that Council has to improve its financial position, and the compounding nature of the problems Council will face if it doesn’t act now.

In his right of reply, Cr Mitchell reiterated his support for the motion. He said that while there is never the right time to increase rates, and that it is never an easy decision, it had been made with humility.

He agreed that there was a need for greater transparency about service reductions, and highlighted that there was more pain to come when the details of the future reductions were determined.

Cr Mitchell closed by stating that the region needs to start paying for the services we’re using now, and not pushing the cost onto future generations.

The motion passed, with Cr Frolich and Cr Williamson voting against.

6.2.1 – Post-Exhibition Report - Revised Delivery Program 2022-2026, OPERATIONAL Plan 2023-2024, Revenue Policy 2023-2024, Fees and Charges 2023-2024 and Revised Long-Term Financial Plan 2022-2032

That Council;

A. Adopt the amended 2022- 2032 Long-Term Financial Plan with the following amendments

(a) Page 29 - 7.2 Scenario 2: Include wording “The compounding effect of the proposed rate rise would result in an increase to council revenue of 68.87% over the 5 years”.

(b) Page 29 - 7.2 Scenario 2: Correct “$8,34,136” to “$834,136.

(d) Page 31: Correct formatting of headings to allow for new details on page 30.

(e) Page 30 - 7.2.1 Special Variation for Snowy Monaro Regional Council: Insert new section:

7.2.1 Special Variation for Snowy Monaro Regional Council for 2023/24 to 2026/27

IPART has assessed Council’s special rate variation application and has determined under section 508A of the Act that:

1. The percentage by which Snowy Monaro Regional Council may increase its general income for the period from year 2023/24 to year 2026/27 (inclusive) is 52.48% consisting of annual increases as set out in the table below:

Year	Annual increase in general income	Cumulative increase in general income
2023/24	12.25%	12.25%
2024/25	10.75%	24.32%
2025/26	10.75%	37.68%
2026/27	10.75%	52.48%

2. The percentage increase set out in clause 1 is subject to the following conditions:

a. The Council use the additional Income for the purpose of funding the proposed program.

b. The Council report in its annual report for each year from year 2023-24 to year 2027-28 (inclusive):

i. The program of expenditure that was actually funded by the additional income, and any differences between this program and the proposed program;

ii. any significant differences between the Council’s actual revenues, expenses and operating balance and the projected revenues, expenses and operating balance as outlined in its long-term financial plan, and the reasons for those differences;

iii. the outcomes achieved as a result of the additional income;

iv. the productivity savings and cost containment measures the Council has in place, the annual savings achieved through these measures, and what these savings equate to as a proportion of the Council’s total annual expenditure; and

v. whether or not the Council has implemented the productivity improvements identified in its application, and if not, the rationale for not implementing them.

The outcome of this assessment is a reduction of rating revenue of $14.4m over the 10-year period from 2023/24 compared to the additional revenue identified in scenario 2. This will impact the level of investment in asset renewal over the 10 year period.

Council will need to consider whether to apply again (for a special rate variation) in four years’ time for a fifth year of variation as outlined in Scenario 2, or to modify the long term financial plan to take into account the reduced revenue from the fifth year onwards.

B. Adopt the 2023-24 Revenue Policy with the following amendments:

(a) Page 2 - Ordinary Rates: Change wording “Council is not seeking an increase” to “Council is seeking an increase”.

(b) Page 2 - Ordinary Rates: Change wording “If approved, this will allow” to “The application would allow”.

(d) Page 2 - Ordinary Rates: Include wording “The compounding effect of the proposed rate rise would result in an increase to council revenue of 68.87% over the 5 years”.

(e) Page 14: Amend on-site sewage management charge fee from $25.00 to $26.00.

C. Adopt the Draft Revised 2022-2026 Delivery Program, with the following amendments to the Draft:

(a) Page 7: Remove paragraph 4 and add:

IPART has assessed Council’s special rate variation application and has determined under section 508A of the Act that:

3. The percentage by which Snowy Monaro Regional Council may increase its general income for the period from year 2023/24 to Year 2026/27 (inclusive) is 52.48% consisting of annual increases as set out in the table below:

Year	Annual increase in general income			Cumulative increase in general income
2023/24	12.25%			12.25%
2024/25	10.75%			24.32%
2025/26		10.75%	37.68%
2026/27		10.75%	52.48%

4. The percentage increase set out in clause 1 is subject to the following conditions:

a. The Council use the additional income for the purpose of funding the proposed program.

b. The Council report in its annual report for each year from year 2023-24 to year 2027-28 (inclusive):

i. The program of expenditure that was actually funded by the additional income, and any differences between this program and the proposed program;

iii. the outcomes achieved as a result of the additional income;

v. whether or not the Council has implemented the productivity improvements identified in its application, and if not, the rationale for not implementing them.

The outcome of this assessment is a reduction of rating revenue of $14.4m over the 10-year period from 2023/24 compared to the additional revenue identified in Scenario 2. This will impact the level of investment in asset renewal over the 10 year period.

D. Adopt the 2023-24 Operational Plan including the budget, with the following amendments to the Draft:

(a) Page 7: Delete paragraph 4 and insert:

IPART has assessed Council’s special rate variation application and has determined under section 508A of the Act that:

5. The percentage by which Snowy Monaro Regional Council may increase its general income for the period from year 2023/24 to Year 2026/27 (inclusive) is 52.48% consisting of annual increases as set out in the table below:

Year	Annual increase in general income	Cumulative increase in general income
2023/24	12.25%	12.25%

E. Adopt the 2023-2024 Schedule of Fees and Charges, in accordance with section 608 of the Local Government Act 1993, as placed on exhibition, with the following amendments to the Draft:

(a) That the proposed 2023/24 fees and charges for sport and recreation not proceed

(b) The 2022/23 fees and charges for sport and recreation be indexed by 4% (and rounded) and be the adopted fees and charges for 2023/24

(d) That the current 2022/23 fees and charges be set as the 2023/24 fees and charges for Delegate School of Arts

(e) That the current 2022/23 hall hire fees be set as the 2023/24 fees and charges for Dalgety Hall

(f) Amend the Delegate Sports Hall fees to the following:

(i) Supper room/hall proposed to reduce by $32.15

(ii) Kitchen/hall proposed fee increase of $33.00

Councillors Hanna, Higgins and Summers spoke for the motion, commending staff for listening to community concerns and addressing these concerns in the revision to the plans now before by councillors for approval.

They expressed their appreciation to the community for their participation in the consultation process.

Cr Summers, speaking last, additionally stressed her belief that the funding model for local government is broken – and that Council does not receive sufficient funding from either the NSW or Federal Government to maintain services at their current level. These plans go some of the way to addressing this problem, but more needs to be done to address this overarching problem.

The motion passed with Crs Frolich and Williamson voting against.

The meeting was then called to a close.

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Summary of Extraordinary Council Meeting Thursday 29 June 2023