CITY OF WANNEROO
REPORTS FOR FINANCE & COMMUNITY SERVICES COMMITTEE
21 AUGUST 1996
FA10608/96
CITY OF WANNEROO MEMORANDUM FA10608/96
TO:CHIEF EXECUTIVE OFFICER
FROM:CITY TREASURER
DATE:21 AUGUST 1996
FILE REF:0181
SUBJECT:FUTURE REVALUATIONS VALUER GENERAL'S OFFICE
Council, at its July 1996 meeting, resolved to invite the Valuer General or his nominee to address Council's Finance and Community Services Committee at its August 1996 meeting on the revised Local Government revaluation programme and the impact of the City of Wanneroo.
Advice from the Valuer General's Office is that Mr Mike Kennedy will attend Council's Finance and Community Services Committee to outline the Valuer General's requirements.
A copy of Council's July report is attached as Attachment A.
As far as this City is concerned, there is no doubt that a further revaluation this year (ready for 1997/98) will impact adversely should this eventuate. Council will not be in a position to effect a uniform rate increase across the district. This, together with the financial consequences of funding a revaluation 2 years earlier than would otherwise be the case (albeit at a cheaper discounted rate), will be an additional burden.
Investigation with the Water Corporation indicates that various tariff reforms are being examined by that body which could impact on its future requirements for Gross Rental Values as a basis for charging. It cannot, at this early stage however, give the City any firm commitment on whether it will require valuations in the future or whether costs will be distributed on a direct user pays basis.
As mentioned in the earlier report, the Valuer General is, in short, requesting local governments to advance their revaluation programme and to incur costs earlier than would otherwise be the case. While stating that it is his prerogative under the Valuation of Land Act to set valuation dates and times, the Valuer General is attempting to achieve this objective in a consultative manner. Hence his request to Council for agreeance to the revaluation programme.
Council will be better informed in relation to this matter following Mr Kennedy's address on Wednesday 21 August 1996.
Submitted for decision.
J B TURKINGTON
City Treasurer
JBT:LR
13 August
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ATTACHMENT A TO FA10608/96
CITY OF WANNEROO REPORT NO: ATTACHMENT A TO FA10608/96
TO:CHIEF EXECUTIVE OFFICER
FROM:CITY TREASURER
FOR MEETING OF:FINANCE AND COMMUNITY SERVICES COMMITTEE
MEETING DATE:17 JULY 1996
FILE REF:0181
WARD:ALL
SUBJECT:FUTURE REVALUATIONS VALUER GENERAL'S OFFICE
The City is in receipt of a letter from the Valuer General advising of changes to the timing and cost of revaluations for Gross Rental Values refer Attachment A.
As Councillors will be aware, for many years the Valuer General's Office has conducted Gross Rental General Valuations (revaluations) of all land within the Metropolitan Region on a three yearly cycle for both the Water Corporation and Local Government. The primary reason for treating the Metropolitan Region as a single entity was to satisfy the Water Corporation's need for a single set of values at a common valuation date.
The last three to four years has seen the Water Corporation move toward a user pays system with the likelihood that it will not require another General Valuation of all properties in the Metropolitan Region. The impact of this change for Local Government is that there will no longer be a second client with whom to share the cost of the values. The Water Corporation's withdrawal from the GRV programme would, without intervention lead to a doubling of charges to Local Government.
In an endeavour to minimise the financial burden to Local Government the Valuer General has implemented the following initiatives:
?Restructured the valuation resource to improve productivity through specialisation and more particularly created a Gross Rental Value Section that concentrates entirely on the provisions of those values.
?Introduced an amended revaluation programme such that approximately one third of the Metropolitan Region is to be revalued each year with each Local Government area revisited on a three yearly cycle. This new approach will remove the extreme peaks and troughs of the previous programme which was inefficient in terms of resource utilisation and periodically lead to an unacceptable level of service in programmes such as Interim Values and Objection determination.
The Valuer General advises that each of the above incentives will lead to a reduction in costs and an improved service in relation to the quality of values and timeliness in the provision of those values.
The Valuer General also advises that the amended revaluation programme cannot be introduced without impacting on Local Government clients. Delaying the commencement of the new programme till 1997/98 was considered, however rejected on the basis that 1999/2000 was too late for the final third of the programme to commence. By that time those values recently completed and in force from 1 July 1996 will be some five years old in terms of their date of valuation and not sufficiently up to date to satisfy the requirements of the Valuation of Land Act.
The Valuer General further advises that the change to the revaluation cycle has financial consequences for those nominated to take values earlier than expected, particularly so for those programmed for 1996/97, and in an effort to minimise the impact has offered the following:
?The charges for General Valuations for 1996/97 have been reduced from the 1995/96 level of $12.90 per value to an average of $9.75 per value largely through the projected productivity gains from an even annual programme and savings from the restructure of our valuation resources.
?For those Local Governments required to take values effective 1 July 1997 the cost of those values will be further discounted by 15% (fifteen per cent) on the published 1996/97 charges.
?Furthermore, for those required to take values effective 1July 1997 consideration will be given to allowing the charges to be paid in two moieties, ie. 1996/97 and 1997/98.
These measures will only apply for the 1996/97 programme and are designed to provide assistance to those clients most affected by change to the General Valuation cycle.
The selection of those Local Government Areas (Valuation Districts) for inclusion in the forthcoming financial year (1997/98) programme has included the following considerations.
?An emphasis on developing areas where the rate of change in the retrospective values of property types tends to be more pronounced and where an early revaluation would be of greater benefit than the more stable areas.
?A need to create annual programmes that each comprise approximately 180,000 values and, allowing for growth, will remain reasonably equal over the medium to long term.
?Acknowledgement of particular problems for some Councils due to such matters as impending physical relocation, the introduction of new computer systems and the like which would make the take up of a revaluation more difficult than normal.
?The creation of groups of adjoining Valuation Districts with a degree of homogeneity within property types where concurrent valuation would lead to economies of scale.
The programme for General Valuations (GRV) for the next three years is as follows:
1996/97 with values effective 1 July 1997
City of Wanneroo
City of Fremantle
Town of East Fremantle
City of Armadale
City of Gosnells
Shire of Kalamunda
Shire of Mundaring
1997/98 with values effective 1 July 1998
City of Cockburn
Town of Kwinana
City of Rockingham
Shire of Serpentine Jarrahdale
City of South Perth
Town of Victoria Park
City of Canning
City of Belmont
City of Melville
1998/99 with values effective 1 July 1999
City of Stirling
Town of Claremont
Town of Cottesloe
Town of Mosman Park
Shire of Peppermint Grove
City of Nedlands
City of Subiaco
Town of Cambridge
Town of Vincent
City of Bayswater
Shire of Swan
Town of Bassendean
The second and third years of the programme are not finally determined but provided as an indication of the likely programme.
As mentioned the Valuer General has included this City on the revaluation programme for 1996/97. This will have the following impact on the City:
1.Wanneroo will have a general revaluation in successive years 1996/97 and 1997/98 (remembering that revaluations of UV are now undertaken on an annual basis).
2.As a consequence of (1) above the current revaluation (1996/97) will only last for one year.
3.Council will need to finance $307,000 (78,500 values x $4.00) to fund the 1997/98 revaluation after having paid $250,000 for the 1996/97 revaluation which would normally have been operative for the following years:
1996/97
1997/98
1998/99
with a further revaluation in 2000/01.
4.The revaluation impact is as follows:
Current GRV Revaluation |Proposed GRV Revaluation
Programme |Programme
|
1996/97 Revaluation |1996/97 Revaluation
1997/98 |1997/98 Revaluation
1998/99 |1998/99
1999/00 Revaluation |1999/00
2000/01 |2000/01 Revaluation
2001/02 |
2002/03 Revaluation |
5.Valuations throughout the City will be revalued again for the 1997/98 rating year which will not permit Council to have a uniform rate increase across the district.
The Valuer General is, in short, requesting Local Governments to advance their revaluation programme and to incur a cost earlier than would otherwise be the case. While stating that it is his prerogative under the Valuation of Land Act to set valuation dates and times, the Valuer General is attempting to achieve this objective in a consultative manner.
As an incentive to Local Governments scheduled for the revaluation in 1996/97 he has discounted the fee payable by 15% bringing the cost per valuation to $4.14 (calculated as follows:
$9.75 less 15% x 50% = $4.14). The 50% factor being the Government discount currently enjoyed by local governments.
Prior to assessing Council's options in this matter it is important for Council to realise the following:
1.Future costs of valuations through the Valuer General's Office will increase with the withdrawal of the Water Corporation subsidy and also the Government subsidy which is currently 50%.
2.The accelerated revaluation programme will also have financial impacts.
3.As a consequence of (2) above it will not be possible to have a common rate increase across the district in 1996/97 and 1997/98.
In assessing this matter the following options emerge:
Option A
Not accept the revaluation in 1997/98 and seek to defer the revaluation until either 1998/99 or 1999/2000.
Option B
Accept the revaluation in 1997/98.
The advantages/disadvantages of Option A are:
Advantages
?Defer the impact of the valuations for a year or two.
Disadvantages
?Pay a higher price for valuations as the Valuer General will not offer a discounted price. In fact the Government is seriously considering deleting the 50% subsidy currently enjoyed by local governments.
The advantages/disadvantages of Option B are:
Advantages
?Obtain the revaluation at a cheaper rate, ie. $4.14 per valuation.
?Have more up to date valuations on which to distribute the rate burden.
Disadvantages
?Unable to have a common rate increase in 1997/98 (as well as the current year 1996/97).
?Fund a revaluation earlier than would otherwise be the case.
Accepting that the rescheduled revaluation programme is inevitable and given that officers have met with the Valuer General and discussed this matter, it would seem that Council has a further option Option C.
Option C
1.Accept the revaluation in 1997/98.
2.Advise the Valuer General that as an accelerated revaluation programme in 1997/98 will cause both ratepayer dissatisfaction and impact adversely on Council's works programme (having to find additional funding), the following payment plan is required:
a)30% discount on the published 1996/97 prices (ie. cost $3.41 per valuation);
b)a payment plan which allows the cost of the revaluation to be repaid over three years:
1997/98
1998/99
1999/00.
3.Request the Valuer General or his representative to address the Finance and Community Services Committee at its August 1996 meeting.
If Council were to consider Option C it is suggested that it firstly request the Valuer General or his nominee to address Council's Finance and Community Services Committee at its August 1996 meeting.
RECOMMENDATION
That Council invites the Valuer General or his nominee to address Council's Finance and Community Services Committee at its August 1996 meeting on the revised Local Government revaluation programme and its impact on Local Government and, in particular, the City of Wanneroo.
J B TURKINGTON
City Treasurer
JBT:KL
8 July 1996
tre0591
FA10708/96
CITY OF WANNEROO REPORT NO: FA10708/96
TO:MAYOR
FROM:CHIEF EXECUTIVE OFFICER
FOR MEETING OF:FINANCE & COMMUNITY SERVICES
MEETING DATE:21 AUGUST 1996
FILE REF:3015
WARD:
SUBJECT:CITIZEN OF THE YEAR,
YOUNG CITIZEN OF THE YEAR AND
COMMUNITY EVENT OF THE YEAR AWARDS
Nomination forms and selection criteria for the 1997 Citizen, Young Citizen and Community Event of the Year Awards have been distributed to all Local Government Authorities by the National Australia Day Council.
Nominees must be Australian citizens and unless there are exceptional circumstances, must be residents of Australia. All Australian citizens resident within the City of Wanneroo will be eligible.
Eligibility for each category is:
*Citizen Award persons 27 years or over as at 26 January 1997.
*Young Citizen Award persons under 27 as at 26 January 1997.
*Community Group Award group of four or more people in recognition of a contribution in the year prior to the Award, or for a longstanding commitment/service to the community.
Only one selection will be made from each category.
Council will be required to advertise the awards in the local press and distribute nomination forms on request. In line with the National Awards, nominations will close on 15 November 1996. Following the receipt of nominations, a selection panel will have to be convened to assess nominations. This panel should consist of one representative of Council and two other citizens.
Presentation of Awards will be made at the Australia Day Citizenship Ceremony on 26 January 1997.
RECOMMENDATION:
1.Nominations for the Awards be called for in the local media during September and October 1996.
2.A Councillor be appointed to the selection panel, and two other citizens approached to serve on the panel.
3.The appointment of the two "other" citizens be ratified and effected by the Mayor and Chief Executive Officer.
4.That Council host a cocktail party for all nominees and their nominators in January 1997, prior to Australia Day to announce the recipient of each category, and invite each recipient to attend the Australia Day Citizenship Ceremony to receive their Award.
MR LINDSAY DELAHAUNTY
Chief Executive Officer
cb
prre0166
REPORT NO: Page No: 1
FA10808/96
CITY OF WANNEROO REPORT NO: FA10808/96
TO:MAYOR
FROM:CHIEF EXECUTIVE OFFICER
FOR MEETING OF:FINANCE & COMMUNITY SERVICES
MEETING DATE:21 AUGUST 1996
FILE REF:7033
SUBJECT:CIVIC RECEPTIONS AND FUNCTIONS
The 1996/97 Calendar of Civic Receptions and Functions was approved at Council's Finance meeting on 19 June 1996 and ratified at full Council on 26 June 1996.
City Librarian, Ms Nerida Clifford, has requested that consideration be given to changing the afternoon tea for the Libraries Department Volunteers, originally scheduled for 3.00pm on 5 June 1997, to a cocktail reception at 6.30pm on the same day. This request was motivated by the inability of a number of volunteers to attend a function during working hours.
RECOMMENDATION:
That Council,
approve the changing of the Libraries Department Volunteers afternoon tea on Thursday, 5 June 1997 at 3.00pm to a cocktail reception to be held at 6.30pm on the same day.
MR LINDSAY DELAHAUNTY
Chief Executive Officer
prre0167
REPORT NO: Page No: 1
1
FA10908/96
C I T Y O F W A N N E R O O R E P O R T NO : FA10908/96
TO:CHIEF EXECUTIVE OFFICER
FROM:CITY TREASURER
FOR MEETING OF:FINANCE AND COMMUNITY SERVICES COMMITTEE
DATE:21 AUGUST 1996
FILE REF:0211
WARD:ALL
SUBJECT:WARRANT OF PAYMENTS FOR THE PERIOD ENDING
31 JULY 1996
WARRANT OF PAYMENTS TO COUNCIL ON 28 AUGUST 1996
INCORPORATING PAYMENTS TO 31 JULY 1996
As Councillors will be aware, the Local Government (Financial Management) Regulations 1996 came into effect 1 July 1996.
Regulation 11 requires a local government to develop procedures for the authorisation and payment of accounts to ensure effective security over these matters. Regulation 12 also provides a minor change to the manner in which creditors cheques are presented to Council. A list of creditors is to be compiled for each month showing:
(a)the payee's name;
(b)the amount of the payment;
(c)sufficient information to identify a transaction; and
(d)the date of the meeting of the Council to which the list
is to be presented.
The list of creditors is to be:
(a)presented to Council at the next ordinary meeting, following the preparation of the list; and
(b)recorded in the minutes of the meeting at which it is presented.
As mentioned, the Local Government Regulations requires Council to develop procedures in relation to the proper treatment of a range of accounting matters. As these will take several months to develop, it is proposed, in the interim, to have the Chairperson of the Finance and Community Services Committee and the City Treasurer certify this list of creditors on a similar arrangement as in the past.
FUNDS VOUCHERSAMOUNT
Treasurer's Advance Account No 1033313 03371 $ 5,751,626.97
Municipal000260 000260 $ 37,290,744.58
000262 000273
______
$ 43,042,371.55
======
CERTIFICATE OF THE CITY TREASURER
This warrant of accounts to be passed for payment, covering vouchers numbered as indicated and totalling $43,042,371.55 which is to be submitted to each member of Council on 21 August 1996 has been checked and is fully supported by vouchers and invoices which are submitted herewith and which have been duly certified as to the receipt of goods and the rendition of services and as to prices, computations and casting and the amounts shown are due for payment.
______
J B TURKINGTON
CITY TREASURER
CERTIFICATE OF CHAIRPERSON
I hereby certify that this warrant of payments covering vouchers numbered as indicated and totalling $43,042,371.55 submitted to the Finance and Community Services Committee on 21 August 1996 is recommended to Council for payment.
______
CR M LYNN
CHAIRPERSON OF FINANCE AND COMMUNITY SERVICES COMMITTEE
EW:LR
7 August 1996
tre0604
REPORT NO: Page No: 1
FA11008/96
CITY OF WANNEROO REPORT NO: FA11008/96
TO:CHIEF EXECUTIVE OFFICER
FROM:CITY TREASURER
FOR MEETING OF:FINANCE AND COMMUNITY SERVICES COMMITTEE
MEETING DATE:21 AUGUST 1996
FILE REF:0200
WARD:ALL
SUBJECT:OUTSTANDING GENERAL DEBTORS JULY 1996
Detailed below is a summary of the outstanding general debtors at 31 July 1996 together with comments on the action being taken with long outstanding accounts.
The overall debtors' position at 31 July 1996 is summarised as follows:
Total Outstanding
$
Current229,935.69 9%