Agenda of Council Meeting - 10 November 2020

Council Meeting

10 November 2020

Minutes of Extraordinary Council Meeting held remotely on 13 October 2020

Meeting commenced at 6.00pm

Present:

Darcy Byrne

Victor Macri

Mark Drury

Lucille McKenna OAM

Colin Hesse

Sam Iskandar

Tom Kiat

Pauline Lockie

Vittoria Raciti

Louise Steer

Anna York

Ross Nassif

Mayor

Deputy Mayor

Councillor

Local Government NSW

DISCLOSURES OF INTERESTS: Nil

Motion: (Byrne/Macri)

THAT Council enter into Confidential session.

Motion Carried

For Motion: Crs Byrne, Drury, Hesse, Kiat, Iskandar, Lockie, Macri, McKenna OAM, Raciti, Steer and York

Against Motion: Nil

That in accordance with Section 10A(1) of the Local Government Act 1993, the following matter be considered in Closed Session of Council for the reasons provided:

C1020(1) Item 1 Confidential Staff Matter (Section 10A(2)(a) and s10A(2)(g)) of the Local Government Act 1993) that would, involve personnel matters concerning an individual other than a councillor and will also involve receipt of legal advice that would be privileged from production in legal proceedings on the ground of legal professional privilege.

ADJOURNMENT

7.06pm - The Mayor, Clr Byrne adjourned the meeting to resume at 7:00pm on Monday, 19 October 2020 remotely.

RESUMPTION

The Mayor, Clr Byrne resumed the meeting at 7:01pm on Monday, 19 October 2020 and the following Councillors, Staff and other attendees were present:

Present:

Darcy Byrne

Victor Macri

Mark Drury

Lucille McKenna OAM

Colin Hesse

Tom Kiat

Pauline Lockie

Vittoria Raciti

Louise Steer

Anna York

Ross Nassif

Megan Jenkins

Mayor

Deputy Mayor

Councillor

Councillor (7.30pm)

Councillor

Local Government NSW

Senior Lawyer (8.17pm)

Motion: (Byrne/Macri)

THAT Council move back into the Open Session of the Council Meeting.

Motion Carried

For Motion: Crs Byrne, Drury, Hesse, Kiat, Lockie, Macri, McKenna OAM, Raciti, Steer and York

Against Motion: Nil

C1020(1) Item 1 Confidential Staff Matter

Motion: (Macri/Drury)

THAT Council delegate to the Mayor to conclude the General Manager’s contract in accordance with the terms proposed in confidential session at the Extraordinary meeting of Council on 19 October 2020.

Motion Carried

For Motion: Crs Byrne, Drury, Macri, McKenna OAM, Raciti and York

Against Motion: Crs Hesse, Kiat, Lockie and Steer

Meeting closed at 8.19 pm.

Minutes of Ordinary Council Meeting held remotely and livestreamed on Council’s website on 27 October 2020

Meeting commenced at 6.30pm

Present:
Darcy Byrne Victor Macri Marghanita Da Cruz Mark Drury Lucille McKenna OAM Colin Hesse Sam Iskandar Tom Kiat Pauline Lockie Julie Passas Vittoria Raciti John Stamolis Louise Steer Elizabeth Richardson	Mayor Deputy Mayor Councillor Councillor (6.33pm) Councillor (6.31pm) Councillor Councillor Councillor (6.33pm) Councillor Councillor Councillor (6.32pm) Councillor Councillor Acting Chief Executive Officer
Cathy Edwards-Davis	Director Infrastructure
Katherine Paixao	Acting Governance Manager
Carmelina Giannini Caroline Karakatsanis Rochele Antolin	Governance Support Officer Audit Office NSW Audit Office NSW

APOLOGIES:

Motion: (Byrne/Drury)

THAT apologies from Councillor York be accepted.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Hesse, Iskandar, Lockie, Macri, Passas, Stamolis and Steer

Against Motion: Nil

Councillor McKenna OAM entered the Meeting at 6:31 pm.

Councillor Raciti entered the Meeting at 6:32 pm.

DISCLOSURES OF INTERESTS:

Clr Lockie declared a non-significant, non-pecuniary interest in Item 11 Notice of Motion: Parking on the Princes Highway as one of the businesses affected is her family vet and they originally approached her for advice on the issue through Council before she referred the business to Clr Macri.

Motion: (Steer/Da Cruz)

THAT Council note the disclosures of interest.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Hesse, Iskandar, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

Councillors Drury and Kiat entered the Meeting at 6:33 pm.

CONFIRMATION OF MINUTES

Motion: (Stamolis/Hesse)

THAT the Minutes of the Council Meeting held on Tuesday, 13 October 2020 and Extraordinary Council Meeting held on Tuesday, 13 October 2020 be confirmed as a correct record.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

ADJOURNMENT

6.40pm - The Mayor, Clr Byrne adjourned the meeting for a short recess.

6.42pm– The Mayor, Clr Byrne resumed the meeting.

Confidential Session

Motion: (Byrne/Macri)

THAT Council enter into Confidential session.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

That in accordance with Section 10A(1) of the Local Government Act 1993, the following matter be considered in Closed Session of Council for the reasons provided:

C1020(2) Item 21 Mayoral Minute: Appointment of Interim CEO contains personnel matters concerning particular individuals (other than councillors) (Section 10A(2)(a) of the Local Government Act 1993).

Motion: Byrne/Hesse

THAT Council move back into the Open Session of the Council Meeting.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

Reports with Confidential Information

C1020(2) Item 21 Mayoral Minute: Appointment of Interim CEO

Motion: (Byrne/Macri)

THAT Council:

1. Appoints Brian Barrett as Acting General Manager of Inner West Council effective from the date on which a contract of employment has been signed by Brian Barrett and the Mayor;

2. Authorises the Mayor to negotiate and sign a contract of employment with a with remuneration in line with the salary of the previous General Manager;

3. Authorises the continued appointment of Brian Barrett as Acting General Manager until a permanent General Manager is appointed by Council. This appointment shall be for not less than 3 months and will conclude with the appointment of the permanent General Manager;

4. Terminates the appointment of Elizabeth Richardson as Acting Chief Executive Officer from the date of the appointment of Brian Barrett as Acting General Manager;

5. Delegates to the Mayor the authority to sign an instrument of delegation to Brian Barrett in the same terms as the Council’s delegations to the previous CEO dated 25 February 2019; and

6. Conduct a review of the delegations and report back in an Ordinary meeting in December 2020.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Raciti, Stamolis and Steer

Against Motion: Cr Passas

ADJOURNMENT

6.58pm - The Mayor, Clr Byrne adjourned the meeting for a short recess.

7.02pm– The Mayor, Clr Byrne resumed the meeting.

C1020(2) Item 15 Mayoral Minute: Arts Forum

Motion: (Byrne)

THAT Council writes to the NSW Arts Minister, the NSW Minister for Jobs, Investment, and Tourism, and the NSW Minister for Planning and Public Spaces requesting the following actions identified through the Arts Forum that Council convened:

That arts infrastructure be included in a Government stimulus plan with a whole of Sydney focus;

2. State Government funding to assist small to medium enterprises, which have been unfunded to date;

3. State Government funding to expand the existing arts funding grants, which are administered by local Councils;

4. Assist with planning and DCP challenges to help with the adaptive use of empty shopfronts for the arts sector;

5. Provide more State Government funding to multicultural arts; and

6. Work with Councils to develop a Public Art Strategy.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Raciti, Stamolis and Steer

Against Motion: Cr Passas

C1020(2) Item 16 Mayoral Minute: King George Park and WestConnex

Motion: (Byrne)

THAT Council:

1. Notes the $2.875 million Council received for the compulsory acquisition of 2,285sqm of land at King George Park);

2. Receive a report back on how the $1.343 million can be dedicated to improving the recreational facilities at King George Park or our other Crown reserves, with preference to be given to parks or reserves in areas significantly affected by WestConnex Stage 3B;

3. Notes the list of priorities of sporting organisations that use King George Park for the sporting ground;

4. Sends a letter from the Mayor to residents of Byrne St, Manning St, Clubb St, Toelle St, Callan St, Springside St, McCleer St and Moodie St asking for their priorities for improvements of public amenities in the area, which will be reported to Council at an Ordinary meeting; and

5. Consults with Balmain Little Athletics, Leichhardt Saints and Leichhardt Juniors Rugby League Club on their priorities and, following this consultation, tabled at an Ordinary meeting.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Iskandar, Lockie, Macri, McKenna OAM, Raciti, Stamolis and Steer

Against Motion: Crs Hesse, Kiat and Passas

PUBLIC FORUM

The registered speakers were asked to address the meeting. The list of speakers is available on the last page of these minutes.

ADJOURNMENT

7.47pm - The Mayor, Clr Byrne adjourned the meeting for a short recess.

7.52pm - The Mayor, Clr Byrne resumed the meeting.

ADJOURNMENT

8.03pm - The Mayor, Clr Byrne adjourned the meeting for a short recess.

8.06pm - The Mayor, Clr Byrne resumed the meeting.

C1020(2) Item 17 Mayoral Minute: Wests Tigers Leisure

Motion: (Byrne)

THAT Council:

1. Notes the correspondence from Justin Pascoe, CEO of Wests Tigers Rugby League Club; and

2. Convenes a meeting with representatives of Wests Tigers Leisure - a joint venture between Wests Tigers Rugby League and Belgravia Leisure - to discuss options for collaboration in Council’s recreational centres, which is to be reported back at an Ordinary Council meeting in December.

Motion Lost

For Motion: Crs Byrne, Drury, Iskandar, Macri, McKenna OAM and Raciti

Against Motion: Crs Da Cruz, Hesse, Kiat, Lockie, Passas, Stamolis and Steer

C1020(2) Item 18 Mayoral Minute: WestConnex Independent Property Impact Assessment Panel

Motion: (Byrne)

THAT Council:

1. Notes the motion establishing a Council service to provide independent dilapidation reports for local property owners affected by tunnelling and construction for the WestConnex project, which was adopted at the 24 April 2018 Ordinary meeting;

2. Notes the advice provided by Council officers that the dilapidation service has been discontinued and that Council has written to Transport for NSW requesting that a Council representative be an observer on its Independent Property Impact Assessment Panel;

3. Provides a report on which Council representative is observing the panel’s operation, how frequently it has met and what their assessment is about the fairness and effectiveness of the panel process, which is to be reported to the next Ordinary Council meeting; and

4. Notes Council’s acceptance of Sat Scan Pty Ltd’s offer for the provision of high-level radar-based satellite imagery for areas along the WestConnex toll road route that fall within the Local Government Area for Inner West Council at the 25 August Council meeting.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

ADJOURNMENT

8.22pm - The Mayor, Clr Byrne adjourned the meeting for a short recess.

8.29pm - The Mayor, Clr Byrne resumed the meeting.

The Mayor issued a warning to Clr Passas for her repeated interjections.

C1020(2) Item 20 Mayoral Minute: Stronger Community Grants

Motion: (Byrne)

THAT Council:

1. Writes to Councils who met the guidelines to qualify for a grant from the NSW Government’s Stronger Communities Fund, but were excluded from applying, and LGNSW, to request their support to pursue the matter, collectively, so we can fight for all our communities; and

2. Requests the General Manager to report back to Council on the written legal advice, once received, of the likely financial commitment to pursue legal action and the willingness of other Councils or the wider industry to support us, ultimately for the purpose of making the decision to proceed or not.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Raciti, Stamolis and Steer

Against Motion: Cr Passas

Suspension of Standing Orders

Motion: (Byrne/Kiat)

THAT Council Suspend Standing Orders to deal with Item 19 – Financial Statements 2019/20 at this time.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

C1020(2) Item 19 Financial Statements 2019/20

Motion: (Lockie/Da Cruz)

THAT Council:

1. Receive and note the report; and

2. Endorse the Financial Statements to be placed on public exhibition with a view of tabling the final report at the November 2020 Council meeting.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

Resumption of Standing Orders

Motion: (Byrne/McKenna OAM)

THAT Standing Orders be resumed.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

C1020(2) Item 1 Adoption - Tempe Reserve Plan of Management

Motion: (Drury/Passas)

THAT Council:

1. Adopt the Tempe Reserve Plan of Management as pursuant to Section 40 of the Local Government Act 1993 in accordance with 3.23(6) of the Crown Lands Management Act 2016 subject to the following amendment:

a) Inserting the following sentence at the beginning of Page 39 sub heading Private enterprise ‘Any change in the management of Tempe Reserve to be consulted with the community.’

2. Notes that nothing in the Plan will preclude the ongoing operation of the Tempe Basin Motor Boat Association and notes that a separate briefing will be provided.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

C1020(2) Item 2 Proposed 'Inner West Fest 2021' Program in Response to Ongoing Covid-19 Impacts

Motion: (Byrne/Lockie)

THAT:

1. Council approve the Inner West Fest 2021 proposal as an alternative events program for 2021 due to COVID-19 impacts; and

2. The Wards be amended to show North Ashfield and South Annandale in Leichhardt Ward-Galgadya, South Ashfield in the Djarrawunang Ward and Ashfield and North Annandale in the Balmain Ward- Baludarri.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Raciti, Stamolis and Steer

Against Motion: Cr Passas

C1020(2) Item 3 Birchgrove Oval - Fence

Motion: (Drury/Macri)

THAT Council proceed with the installation of the proposed steel powder-coated picket fence at Birchgrove Oval.

Motion Lost

For Motion: Crs Drury, Iskandar, Lockie, Macri and McKenna OAM

Against Motion: Crs Byrne, Da Cruz, Hesse, Kiat, Passas, Raciti, Stamolis and Steer

Foreshadowed Motion (Stamolis/Hesse)

THAT Council:

Proceed with a wooden picket fence for Birchgrove Oval; and

Obtain quotes for the repair of the fence.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

C1020(2) Item 4 Planning Proposal Pre-Exhibition Report - Extended Trading Hours and Cultural Activities

Motion: (Byrne/Macri)

THAT Council:

1. Endorse and forward the attached Planning Proposal, facilitating extended trading and cultural activities, to the Department of Planning, Industry and Environment with a request for Gateway determination;

2. Request delegation of the plan-making functions for this planning proposal to Council’s Acting General Manager;

3. Should a favourable Gateway determination be received, publicly exhibit the planning proposal in accordance with any conditions of the Gateway determination and the Environmental Planning and Assessment Act 1979;

4. Receive a post-exhibition report for its consideration;

5. Review the operation of the policy after 12 months and a report prepared for Council; and

6. Review resident parking schemes in surrounding areas.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

C1020(2) Item 5 Night Time Economy Action Plan

Motion: (Lockie/Byrne)

THAT Council adopt the Night-Time Economy Action Plan.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Raciti, Stamolis and Steer

Against Motion: Cr Passas

C1020(2) Item 6 Community Gardens Policy

Motion: (Da Cruz/Stamolis)

THAT Council:

1. Adopts the Community Gardens Policy; and

2. Rescind the existing community garden policies: Leichhardt Council Community Garden Policy 2011 and Ashfield Council Community Gardening Policy 2012.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

C1020(2) Item 7 Local Traffic Committee Meeting - October 2020

Motion: (Stamolis/Passas)

THAT the Minutes of the Local Traffic Committee Meeting held in October 2020 be received and the recommendations be adopted.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

C1020(2) Item 8 Investment Report as at 30 September 2020

Motion: (Drury/Stamolis)

THAT the report be received and noted.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

C1020(2) Item 9 Notice of Motion: Inner West Council monitoring of Councillors, staff and residents

Motion: (Stamolis/Passas)

THAT a report be brought back to Council on Privacy and Information Governance Procedures of Council.

Motion Lost

For Motion: Crs Da Cruz, Macri, Passas, Raciti, Stamolis and Steer

Against Motion: Crs Byrne, Drury, Hesse, Iskandar, Kiat, Lockie and McKenna OAM

Councillor Raciti left the Meeting at 10:13 pm.

C1020(2) Item 10 Notice of Motion: Whites Creek wetlands: update on current works

Motion: (Stamolis/Da Cruz)

THAT Council to provide an update of current works at the Whites Creek wetlands.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Stamolis and Steer

Against Motion: Nil

Absent: Cr Raciti

C1020(2) Item 11 Notice of Motion: Parking on the Princes Highway

Motion: (Macri/Hesse)

THAT Council resolves to write to the Minister and TFNSW to alert them of the serious impact the lack of action on this simple matter is having on the viability of these businesses in a time when they need to be supported.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Stamolis and Steer

Against Motion: Nil

Absent: Cr Raciti

Confidential Session

Motion: (Byrne/Drury)

THAT Council enter into Confidential session.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Stamolis and Steer

Against Motion: Nil

Absent: Cr Raciti

Councillor Raciti returned to the Meeting at 10:20 pm.

That in accordance with Section 10A(1) of the Local Government Act 1993, the following matters be considered in Closed Session of Council for the reasons provided:

C1020(2) Item 13 Balmain Leagues Site - Voluntary Planning Agreement (Section 10A(2)(c) of the Local Government Act 1993) that would, if disclosed, confer a commercial advantage on a person with whom the council is conducting (or proposes to conduct) business.

C1020(2) Item 14 Tempe Reserve Synthetic Turf Tender Report (Section 10A(2)(d)(ii) of the Local Government Act 1993) that would, if disclosed confer a commercial advantage on a competitor of the Council.

Motion: (Byrne/Drury)

THAT Council move back into the Open Session of the Council Meeting.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Hesse, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Passas, Raciti, Stamolis and Steer

Against Motion: Nil

Reports with Confidential Information

C1020(2) Item 13 Balmain Leagues Site - Voluntary Planning Agreement

Motion: (Drury/Macri)

THAT the proposed Voluntary Planning Agreement for Balmain Leagues Site 138-152 Victoria Road, Rozelle be placed on public exhibition for a minimum of 28 days and be reported back to Council after public exhibition.

Motion Carried

For Motion: Crs Byrne, Da Cruz, Drury, Iskandar, Kiat, Lockie, Macri, McKenna OAM, Raciti, Stamolis and Steer

Against Motion: Cr Hesse and Passas

C1020(2) Item 14 Tempe Reserve Synthetic Turf Tender Report

Motion: (Drury/Macri)

THAT Council accept the tender submitted by The Trustee for the Turf One Unit Trust, 89 Simcock Avenue SPOTSWOOD VIC 3015 for the Tempe Reserve Synthetic Turf Project Option A (One synthetic sports field and upgrade of five natural sports fields) for a total amount of $6,249,791.36 inc GST which includes a lump sum price of $5,434,601.19 including GST and a 15% contingency.

Motion Carried

For Motion: Crs Byrne, Drury, , Iskandar, Lockie, Macri, McKenna OAM, Raciti and Stamolis

Against Motion: Cr Hesse, Passas, Steer, Da Cruz, Kiat

Meeting closed at 10.30pm.

Public Speakers:

Item #

Speaker

Suburb

Item 1:

James McDonald

St Peters

Item 9:

Maire Sheehan

Annandale

Council Meeting

10 November 2020

Item No: C1120(1) Item 1

Subject: Harmonisation of Rates

Prepared By: Daryl Jackson - Chief Financial Officer

Authorised By: Brian Barrett - Acting General Manager

RECOMMENDATION

THAT Council:

1. Acknowledges that the rates harmonisation process is to be implemented before 1 July 2021, in accordance with the Local Government Act 1993;

2. Endorses the Proposed Rating Structure (categories, sub-categories) as recommended in the report for community engagement as follows;

Type	Minimum	Ad Valorem
Residential	$850	Yes
Business – General	$820	Yes
Business – Industrial
· Marrickville · St. Peters · St. Peters North · Camperdown	$820 $820 $820 $820	Yes Yes Yes Yes
Business Shopping Malls
· Ashfield Mall · Leichhardt Marketplace · Norton Street Plaza · Marrickville Metro	$820 $820 $820 $820	Yes Yes Yes Yes
Business Airport	$820	Yes

3. Endorse the new Minimum Rates as recommended in the report, for community engagement as follows:

· Residential - $850

· Business – General - $820

· Business – Industrial

- Marrickville - $820

- St. Peters - $820

- St. Peters North - $820

- Camperdown - $820

· Business Shopping Malls

- Ashfield Mall - $820

- Leichhardt Marketplace - $820

- Norton Street Plaza - $820

- Marrickville Metro - $820

· Business Airport - $820

4. Endorses reallocation of Ashfield Mall, Leichhardt Marketplace and Norton Street Plaza from Business General to Business Malls and the redistribution of rates income from Business General to Business Malls as recommended in the report, for community engagement;

5. Commences Community Consultation on the proposed rating structure;

6. Notifies IPART in November 2020 of its intention to apply for a new Minimum Rate, in accordance with the relevant legislation;

7. Following completion of the above Community Consultation, receives a Report on the outcomes of community engagement for the adoption of the Harmonised Rating Structure; and

8. Pending the outcome of community engagement, resolves to submit an application to IPART to obtain approval for the new Minimum Rate.

DISCUSSION

Amalgamation and Rates Path Harmonisation

During the Council Amalgamation process, section 218CB was inserted into the Local Government Act 1993. This essentially was a transitional provision, required all amalgamated Councils to continue on their existing pre-amalgamated rating structures for a period of four (4) years from 1 July 2016 through until 30 June 2020. Subsequently, the NSW Government amended the Local Government Act again, extending this deadline until 30 June 2021.

This provision of section 218CB expires at 30^th June 2021, meaning that Council will be required to adopt a harmonised rating structure effective from 1^st July 2021. Therefore, the rates path freeze will lift, and Inner West Council is required, by Law, to harmonise rates from July 2021.

This requirement to harmonise rates is mandatory, and current NSW legislation does not allow for the harmonisation of rates over a transition period. Furthermore, current NSW legislation does not allow for the continuation of existing pre-amalgamation structures. Council must adopt a new, harmonised rating structure. If Council does not do so, Council will not have a compliant rating structure.

Finally, NSW legislation does not allow Council to make provision compassion to those ratepayers who will be most affected by a sudden and significant change in the rates they are required to pay.

As such, there is no option for Council to continue with these structures. Therefore, it is not within the scope of this project to consider these legacy structures any further.

Proposed Rating Structure

The Act allows rates to set a structure to distribute rates between categories and subcategories of ratepayers and may also charge ordinary rates and special rates. A rate may consist of:

· An ad valorem amount (which may be subject to a minimum amount), or

· A base amount, to which an ad valorem amount is added.

Ad Valorem Only

Use of ad valorem only is not considered to be equitable as it creates significant disparity for ratepayers as it solely relies on the land value for rate calculations. Further it is an ineffective way of addressing the benefits (or user pays) principle. It has therefore not been considered in our analysis.

Minimums

Minimums and Base Amounts both help smooth the impact of land valuations on rates, however a base amount will generally result in a disproportionately lower level of rates for strata apartments. The Base amount is limited due to the fact that the overall value of revenue from base amounts is capped at 50% of the total rates revenue.

The use of a minimum rate structure in higher density areas is desirable as it will result in a higher proportion of ratepayers paying the same minimum amount, and reduces the gap between the lower amount of rates paid (for properties with lower land values, such as apartments) and the average ad valorem amount being paid by ratepayers across the local government area. Officers have l therefore performed scenario analysis based on differing minimum values.

a) Should Council wish to set a minimum rate as is recommended, it is required to: Notify IPART of its intention to set a minimum rate (November 2021)

b) Submit a Minimum Rate Application to IPART. These are currently due 8 February 2021, however a one-month extension has been sought.

Proposed Rating Categories

A simplification of rating categories is proposed. The Rating structure proposed to be established comprise the following categories and sub-categories:

· Residential

· Business – General

· Business – Industrial

· Business – Malls

· Business – Airport

It is considered that an ad valorem subject to a minimum rate should be applied across all proposed rating categories and sub-categories, with this minimum to be set at –

· Residential - Minimum $850

· Business General, Industrial, Malls and Airport - Minimum $820

Determining a New Minimum

The following impact analysis of different minimum levels for Rates has been undertaken -

Residential

Five options were developed and evaluated. Analysis highlighted that land value variations between former councils, along with the 2019 revaluation, have a significant impact on all proposed rating structures.

Consideration was given to:

· Council’s property profile and continued growth in apartments;

· The need to maintain a similar level of rating equity across all property forms and value;

· Having a simple and easy to understand rating structure; and

· Desire to maximising future rates revenue as a result of growth.

Our analysis of these factors has resulted in a recommended Residential harmonised rates structure using an ad valorem with a minimum amount. It is recommended to move to a minimum rate of $850, in order to achieve the greatest degree of equity.

The impact on income is illustrated in the following table

Table 1: Residential Rates Income by Former Council

The high level outcome for the resdiential category is detailed in the following figure.

The following table demonstrates the impact of the recommended option, being a minimum rate of $850, across Inner West Council’s LGA, based on a percentile of land value.

Table 2: Recommended Comparative Change by Land Value

Further the following table demonstrates the impact of the recommended option, a minimum of $850, by former LGA, based on a percentile of land value.

Table 3: Former Council Comparative Change for Recommendation

To understand the degree of impact the following table illustrates the range in dollar changes across the Inner West Council residential assessments for the recommended option of a $850 minimum.

Table 4: Dollar Range Analysis by Assessment Numbers

The following table illustrates the range in dollar changes across the former Councils residential assessments for the recommended option of a $850 minimum.

Table 5: Former Council Dollar Range Analysis by Assessment Numbers

Business General

Five options were developed and evaluated. Consideration was given to:

· Maintaining a similar level of rating equity across all property forms and value;

· Having a simple and easy to understand rating structure; and

· Maximising future rates revenue from growth.

The preferred option should have the least impact on each former council and maintains key rating principles of equity and simplicity.

Analysis of these factors has resulted in a preferred Business General harmonised rates structure using an ad valorem with a minimum amount of $820, and a redistribution of $600,000 from Business General to Business Malls to improve alignment between benefits received and rates paid.

The impact on income is illustrated in the following table:

Table 6: Business General Income by Former Council

The high-level outcome for the Business category is detailed in the following figure

Figure 2 – Recommended Outcome

To understand the degree of impact the following table illustrates the range in dollar changes across the Inner West Council Business General assessments for the recommended option of a $820 minimum and the transfer of $600,000 from Business General to Business Mall.

Table 7: Dollar Range Analysis by Assessment Numbers

The following table demonstrates the changes in rates being charged to ratepayers with a minimum set at $820 and the redistribution of $600,000 to Business Malls sub-category, for each former LGA.

Table 8 Former Council Dollar Range Analysis by assessment numbers

The following table demonstrates the impact of the recommended option, a minimum rate of $820 and the transfer of $600,000 to Business Malls, across Inner West Council’s LGA, based on a percentile of land value.

Table 9 Recommended Option Comparative Change by Land Value

Business Industrial

There are no proposed changes to the current structure or income yield with the exception of including a minimum of $820, having no impact

Business Mall

Under the current legacy rating structures, only Marrickville Metro is separately rated as a stand- alone sub-category. The recommended structure is to transfer Ashfield Mall, Leichhardt Marketplace and Norton Street Plaza from Business General and into Business Malls sub-category. The following table details the current rates paid by each Mall.

Table 10 Current Mall Rates

Part of the recommended structure is to redistribute $600,000 of rates revenue from Business General to Business Malls to improve alignment between benefits received and rates paid. The following table demonstrates the impact of the redistribution of the $600,000 based on percentage of property value.

Table 11 Mall Income distribution with $600,000 transfer

Business Airport

There are no proposed changes to the current structure or income yield with the exception of including a minimum of $820, having no impact.

COMMUNITY CONSULTATION

The community engagement process should ensure that ratepayers are given an opportunity to be made aware of why council is required to make this change to the rating structure, inform ratepayers of the impact of the change to their rates and allow ratepayers an opportunity to provide Council with their feedback.

So as enable thorough community consultation, Council staff have requested an extension to IPARTs (current) deadline of the 8 February 2021, for the submission of the minimum rate variation. In consultation with IPART, an extension has been sought until the 10 March 2021. Councillors will be advised separately if that extension application is unsuccessful, thereby needing to advance the community engagement timeline.

Council has developed a robust Communications and Engagement Plan which allows for an extended community engagement period due to the December and January holiday period, in accordance with Council’s adopted Community Engagement Framework.

The plan includes:

· Dedicated project page on Council’s community engagement website, Your Say Inner West

· Extensive promotion to ratepayers and broader community including mail-out to ratepayers, information flyer, promotion through Council’s channels including e-news, social media and traditional media, updates on corporate web page, targeted emails to stakeholders e.g. business chambers

· Inclusive communication including provision of information translated to top community languages, promotion of translator service, and provision in accessible formats for people with disability

· Information session hosted by Council’s Finance team, online Q & A function enabled and contact officer for phone calls throughout engagement period

After the engagement period closes, a comprehensive Engagement Outcomes Report will be published and reported to the elected Council.

HARMONISATION TIMETABLE

The remainder of the Rates Harmonisation timetable is as follows:

Activities	Month
Council report – resolution to endorse engagement program	November 2020
Notify IPART SR Minimum Rating Structure	November 2020
Prepare Communications and Engagement material - Ratepayers	November/December 2020
Engage Ratepayers	Early December–14 February 2021
Publish Engagement Outcomes Report	February 2021
Council report - Endorse/Adopt New Rating Structure	9 March 2021
Submit SR Minimum Rate Application IPART	10 March 2021
IPART decision following public exhibition	TBA
LIVE - July 2021 (Issue Rates Notices)	July 2021

FINANCIAL IMPLICATIONS

Should Council not establish proposed Minimum Rates as recommended within this paper at this time, Council will be unable to raise the Minimum Rate until future years (given the requirement of community consultation and IPART approval).

In these circumstances, Council will need to consider an alternative structure. Council may resolve to adopt the Statutory Minimum Rate (section 548(3)(a) of the Local Government Act 1993) plus ad valorem. This statutory minimum is prescribed in Regulation 126 (Local Government Regulations 2005). This is set at $554.

The effect of this is that ratepayers with lower land values will (e.g. apartments) will be subject to a lower significantly lower Minimum Rate, and the remaining Rates Base being distributed to all other ratepayers. This model is undesirable as it less equitable and does not address key issues such as of benefits provided / user pays principles.

SUMMARY

Council is required to harmonise its rating structure by 1 July 2021.

A rating structure has been recommended in this report that:

· Does not increase the overall yield received from rates;

· Distributes the yield received from rates equitably across the entire LGA having regard to property land values;

· Sets a minimum Residential rate of $850.00 as this will provide rating equity across all property forms and value, including apartments; without unreasonably burdening those properties in the lower property value brackets; and

· Proposes Business rates being charged to ratepayers with a minimum set at $820 and the redistribution of $600,000 to Business Malls sub-category to improve alignment between benefits received and rates paid.

Should Council endorse the structure in principle, it will proceed to community engagement, before being reported back to Council in March 2021.

ATTACHMENTS

Nil.

1.	Heritage assessment by Hector Abrahams Architects - Published separately on Council’s website
2.	Gateway Determination
3.⇩	Engagement Outcomes Report
4.⇩	Heritage NSW submission

1.	Leichhardt Park Plan of Management – Published separately on Council’s website
2.	Appendicies Leichhardt Park Plan of Management - Published separately on Council’s website