MINUTES OF THE ORDINARY MEETING OF THE THIRTEENTH …... · 4. WELCOME TO THE GALLERY AND PUBLIC QUESTION TIME The Mayor welcomed those present in the gallery. 5. DISCLOSURE OF INTEREST

MINUTES OF THE ORDINARY MEETING OF THE THIRTEENTH COUNCIL HELD ON MONDAY 26 FEBRUARY 2018 AT 6:00PM IN COUNCIL CHAMBER, CIVIC CENTRE, ALICE SPRINGS

1. ATTENDANCE

1.1 Opening of the Meeting by the Mayor

His Worship the Mayor Damien Ryan declared the meeting open at 6.00pm and welcomed all present to the meeting.

Mayor Ryan acknowledged the Central Arrernte people who are the traditional owners and custodians of Alice Springs.

PRESENT

Mayor D. Ryan (Chair)Councillor G. Auricht Councillor J. de Brenni Councillor M. Banks Councillor J. Cocking Councillor E. Melky Councillor M. Paterson Councillor J. Price Councillor C. Satour

OFFICERS IN ATTENDANCE

Mr R. Mooney - Chief Executive Officer Mr S. Allen - Director Technical ServicesMr C. Wilson - Acting Director Corporate and Community ServicesMr D. Pillay - Director FinanceMrs A. Signor - Executive Assistant (Minutes)

2. PRAYER

Pastor Katie Spakman from the Living Hope Apostolic Community Centre presented the prayer preceding the meeting.

3. APOLOGIES

Nil

4. WELCOME TO THE GALLERY AND PUBLIC QUESTION TIME

The Mayor welcomed those present in the gallery.

5. DISCLOSURE OF INTEREST

5.1 Cr. Cocking - 13.3.11Juvenile Detention Centre - Desert Knowledge site (Board Member) - Mayor Ryan (Agenda Item 10.1.4)

6. MINUTES OF PREVIOUS MEETING

6.1 Minutes of the Ordinary Open Meeting of the Council held on Monday 29 January2018

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Moved Councillor Melky Seconded Councillor Cocking

That the minutes of the Ordinary Meeting of the Council held Monday 29 January 2018 be confirmed as a true and correct record of the proceedings of those meetings.

CARRIED (19517)

6.2 Business Arising from the Minutes

6.2.1 Cr. Cocking - 15.1Service Clubs and Adventure Playground / Water Play Area

Cr. Cocking noted that the meeting had not yet occurred.

Cr. Melky left the Chamber due to a conflict at 6.03pm Cr. Melky returned to the Chamber at 6.04pm

6.2.2 Cr. Banks-15.6Participation in the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory

Mayor Ryan advised that he attended the Hydraulic Fracturing Community Forum on Thursday 8 February 2018 and conveyed the position of Council.

CEO Rex Mooney advised the submission date closed on 5 January 2018 for Mayor Ryan to present to the Hydraulic Fracturing Inquiry.

CEO Rex Mooney confirmed that the letter to the Chief Minister and relevant Ministers to formally convey Council's position had been actioned.

7. MAYORAL REPORTS AND MINUTES

7.1 Mayor’s ReportReport No.28/1 Bond

Moved Councillor Melky Seconded Councillor Banks

That the Mayor’s Report be received.CARRIED (19518)

7.2 Business arising from the Report

Councillor CockingItem 1. 36 Ryan James Neve, Giovana D’Alessandro - ARIT ASTC Briefing

Meeting about alcohol research. Ryan and Giovana would like to brief Council. Giovana will ensure the Alcohol Reference Group has a meeting with the Minister.

Item 1.43 Trevor Riley-Alcohol Policies and Legislation ReviewPleased to hear that Council is supportive of the Riley Report.

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Councillor BanksItem 1. 19 Gina Wilson. Community Relations Manager, Jemena - Northern Gas Pipeline

Ms Wilson presented to the Regional Development Australia Northern Territory meeting in Darwin and discussed with Mayor Ryan the benefits of this project to employment within the Barkly Region.

8. COUNCILLOR REPORTS

Councillor SatourArrernte Traditional Owners Flag on Anzac Hill ConsultationDr Supriya Matthew, Postdoctoral Researcher CDU - Safer Public Places StrategyCliff Weeks, Executive Director Central AustraliaElaine Peckham, Arrernte Traditional OwnerRosalie Riley, Arrernte Traditional OwnerDoris Stuart, Arrernte Traditional OwnerExecutive Development Committee MeetingASTC January Ordinary MeetingASTC February Committee MeetingInteragency Country Clash - Community Safety StrategyHeavy Vehicle MeetingBrian Stirling, Traditional OwnerKumalie Riley, Traditional OwnerPhilip Alice, Traditional OwnerASTC February Council ForumMr Leon Tripp, Regional Youth Programs Coordinator, Department of the Chief MinisterBaden Williams, Four Corners CouncilTourism, Events and Promotions Committee MeetingPhynea Clarke, Central Australian Aboriginal Family Violence Prevention UnitCommunity and Youth Engagement Division - NT PoliceABC Radio BreakfastABC Radio Drive - Flag on Anzac HillCorrespondence with Lhere Artepe, Akeyulerre Healing Centre, IAD Men’s and Grandmother’s Program and Petition Flag on Anzac Hill

Councillor CockingTourism Events and Promotions Committee Meeting Repower Strategic Planning sessionInterview for the ASTC Local Government Management CompetitionRegional Waste Management Facility Advisory CommitteeAnzac Hill flag policy consultationASTC February Standing Committee MeetingDavid Havercroft - Parks Advisory CommitteeFiona Walsh - Phone call - Todd River treesSandy Robinson - Dog ParkMeeting with CEO Rex Mooney, Mayor Ryan and Councillor Banks - FrackingMeeting with Mayor Ryan - Alcohol reviewPhone meeting with Cr. Paterson - Anzac Hill and Skate ParkMeeting with Cr Melky, Cr Satour and Cr BanksASTC February Council ForumExecutive Development Committee MeetingHeavitree Gap Planning Project - consultationEOI Meeting Place Partnership meetingThe long Goodbye with Anna Krien

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Numerous Facebook messages with people - Flag on Anzac Hill ABC 783 - Fracking Advocate - Water conservation Advocate - Anzac Hill Flag

Councillor PatersonPhonecalls - Cr. Cocking, Cr Melky and Cr. de BrenniYAG MeetingSFAC MeetingTodd Mall MarketsASTC January Ordinary MeetingASTC February Committee MeetingASTC February Council ForumInterview ABC with Stewart BrashInterview with the AdvocateWomen’s AFL MatchPhonecalls - Newland Park

Councillor MelkyEnvironment Advisory Committee Meeting Executive Development Committee Meeting Anzac Hill Traditional Owners Consultation Meeting ASTC February Council Forum ASTC February Committee Meeting EOI The Meeting Place MeetingMeetings with members of the public - Footpath at Beechcraft Street, Todd Mall loading zone, Anti-social issues, Traffic Management, Parking, Economic Planning.Northern Territory Government / Traditional Owners / Trucking Members / Cr. Satour - Rock throwing15 walk-ins - Local Government issues - Rates / Anti-social behaviourABC RadioAdvocateAlice Springs News Online - Erwin ChlandaPhonecall with Cr. PatersonMeeting with Cr. Banks, Cr. Satour, Cr. Cocking

Councillor BanksPlanning for the Future Session - CADOMayor Ryan, Cr. Cocking and CEO Rex Mooney - Discussion of MotionASTC February Council ForumTourism, Events and Promotions Committee MeetingEnvironment Advisory Committee MeetingMeeting with Cr. Cocking, Cr. Satour and Cr. Melky

Councillor PriceDAE Challenge at the Telegraph Station ASTC February Committee Meeting Executive Development Committee Meeting Anzac Hill Flag Policy Consultation meeting Public Art Advisory Committee Meeting YAG Committee MeetingTown Camps residents and members of the public - Youth, Anzac Hill Flag, Anti-Social Behaviour Mayor Steve Edgington and Cr. Chris Civitarese - Barkly Regional Council

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AICD Local Government Course DarwinMeetings with Cr. Peter Gazey and Cr. Toni Tapp-Coutts, Katherine Town CouncilVic Daly Regional Cr. Gai LawrenceTiwi Islands Regional Cr. Marius PuruntatameriFriday Wrap - ABC Local radioWomen’s AFL GameTodd Mall Markets

Councillor AurichtAnzac Hill Flag Policy Consultation meetingASTC February Committee MeetingOutback Way Teleconference MeetingEnvironment Advisory Committee MeetingMayor Ryan - Climate Action Plan and Council budget estimates

Councillor de BrenniASTC January Ordinary Council MeetingASTC February Council ForumExecutive Development Committee MeetingASTC February Committee MeetingRegional Economic Development Committee MeetingImparja Cup Opening BarbequeImparja Cup GamesAnzac Hill Flag Policy Consultation meetingRWMF Committee MeetingAlice Springs Arts Foundation monthly meetingCemeteries Advisory Committee MeetingTravelling Film Festival Opening FunctionEOI - The Meeting Place meetingSFAC Committee MeetingFuneral Daymen Stokie8HA Sports Show2018 NAB AFL Women's MatchMayor Steve Edgington - Barkly Regional CouncilDiscussion with Cr. PatersonVarious consultations with public in regards to different matters

9. ORDERS OF THE DAY

9.1 That Elected Members and Officers provide notification of matters to be raised General Business.

9.2 Cr. Cocking - Todd River Red Gums

Moved Councillor Cocking Seconded Mayor Ryan

10. DEPUTATIONS AND PETITIONS

10.1 Professor Rolf Gerritsen and Dr Deeoika MathurProject: Smart Ways to Reduce Waste, Alice Springs

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11. MEMORIALS

Nil

12. NOTICE OF MOTIONS

Nil

13. REPORTS OF STANDING COMMITTEES - RECOMMENDATIONS

13.1 Finance Committee

13.1.1 Minutes of the Open Section of the Finance Committee Meeting held 20 November 2017

(Item 4.1)

Moved Councillor Cocking Seconded Councillor de Brenni

That the minutes of the Open Section of the Finance Committee meeting held on 20 November 2017 be taken as read and confirmed as a true and correct record of the proceedings of that meeting.

(5344f)

CARRIED (19519)

13.1.2 Financial Reports (Item 9.1)

Report No. 21/18f(DF)

This report includes the following financial information:• Income & Expenditure Statement• Balance Sheet• Cash Reserves and Cash Analysis Reconciliation• Key Financial Performance Ratios• Monthly Payments Listing (EFT & Cheque) including utilities spreadsheet• Debtors Analysis• Investments report• Grants Schedule• Income & Expenditure by Goal• Regional Waste Management Facility Income & Expenditure• IT Report

This report shows that Council is in a sound budgetary position as at 31 January 2018.

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That these reports be noted.

13.1.3 Director of Finance - Territory taxes (Item 10.11

(5345f)

CARRIED (19520)

Northern Territory Government is currently investigating amending the tax system.

The proposed property and land taxes would have impacts on Council and the community.

The Chief Executive Officer advised that Council would be providing Northern Territory

Government with feedback on concerns raised.

Discussion ensued


That the Alice Springs Town Council strongly opposes the introduction of a property tax on the ratepayers of Alice Springs.

UNANIMOUS (5346f) CARRIED (19521)

13.1.4 Mid-Year Budget Review - 2017/18 - UPDATE (Item 15.1)

Report No: 20/18f (DR

(Item transferred from Agenda Item 23.1.2)

A summary of Council’s financial position is presented as at the 31st December 2017.


A) It is recommended that the mid-year budget review for the period ending 31 December 2017 be received and that the amount of $138,000 be approved for reallocation to the recommended budget lines.

B) The decision arising from this report be moved into Open Council

C) Notwithstanding the decision from the report entitled Loan Budget for 2017/18 and 2016/17 Surplus Funds (No. 201/17cncl) has already been moved into Open Council, it is recommended that the full report also be moved into Open Council

(5348f)

CARRIED(19545)

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Agenda Item 24.2.1

TO:

SUBJECT:

AUTHOR:

CONFIDENTIAL REPORTReport No.201/17cncl

FINANCE ORDINARY - 11 DECEMBER 2017

LOAN BUDGET FOR 2017/18 AND 2016/17 SURPLUS FUNDS

DIRECTOR FINANCE - DINESH PILLAY

This item is considered "Confidential” pursuant to Section 65(2) of the Local Government Act 2008 and regulation 8 (c)(iv) and regulation 9 of the Local Government (Administration) Regulations 2008.

EXECUTIVE SUMMARY

At the Finance Committee meeting held 9 October 2017, Councillor Melky put forward a notice of motion wherein the unspent loan budget for the 2017/18 financial year be considered for a credit back to the community or the Elected Members decide how to invest or spend the funds.At that meeting, the annual budget wrap document was also tabled highlighting that there was an additional $585,598 as part of the 2016/17 surplus funds.

It is recommended:

That this report be noted and the Council provide direction as to how the funds be spent.

REPORT

1. BACKGROUND

At the Ordinary Council meeting of the 23 October 2017, Council requested that discussions in regard to the unspent loan budget of 2017/18 as well as the 2016/17 surplus funds be deferred to the November 2017 Council forum.

2. DISCUSSION

At the Council forum held on the 30 November 2017, the Elected Members were advised that as per advice received from Council's external auditor, Council’s in-house solicitor as well as the Department of Housing and Community Development (Local Government and Community Development Division) that Council cannot pay the unspent loan budget to the community. Per the advice from the Department, the option to pay funds to the community is strongly opposed and the department further advised that this option did not reflect responsible use or management of public money.

In regard to the 2016/17 surplus funds, Council was directed to the Budget Wrap - 2016/17 report that was tabled at the Finance Committee meeting on the 9 October 2017 and were reminded of the initial recommendations put up by officers as to where the surplus funds and the unspent loan budget funds could be spent.

At the forum discussions, Council was also presented with the draft 10 Year Capital Works document for Elected Members to consider additional projects.Some discussions ensued and additional information on the llparpa Road footpath was sought.

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Report No. 201/17cncl -12

Some discussions ensued and additional information on the llparpa Road footpath was sought.Council will now provide direction on how to proceed.

3. POLICY IMPACTS

Nil

4. FINANCIAL IMPACTS

Council must make an informed decision as to where the 2017/18 unspent loan budget as well as the 2016/17 surplus funds be spent on, thus benefiting and enhancing community assets.

5. SOCIAL IMPACTS

Nil

6. ENVIRONMENTAL IMPACTS

Nil

7. PUBLIC RELATIONS

The community may be under the assumption that based on the resolution of Council, it may be receiving a rates credit during the course of this financial year and as such may be disappointed if no such credit is received, if Council so decides.

8. ATTACHMENTS

1. Committee meeting - 9/10/2017 - Budget wrap 2016/17 report2. Ordinary meeting - 23/10/2017 - report attached3. Correspondence received from Director Sustainability and Compliance, Department of

Housing and Community Development (Local Government and Community Development Division) - received 29/11/2017

4. Memorandum - Council Solicitor - 17/11/2017

pmdsh PillayDIRECTOR FINANCE

10-CNCL 26/02/18

ATTACHMENT 1

Agenda Item 15.1

CONFIDENTIAL REPORTReport No.163/17f

TO: FINANCE COMMITTEE - 9 OCTOBER 2017

SUBJECT: BUDGET WRAP - 2016/17AUTHOR: DIRECTOR FINANCE - DINESH PILLAY

This item Is considered "Confidential" pursuant to Section 65(2) of the Local Government Act 2008 and regulation 8 (c)(iv) and regulation 9 of the Local Government (Administration) Regulations 2008.

EXECUTIVE SUMMARY

This report provides a summary of:

1) . The budget outcome as at 30th June 20172) . Information on recommended usage of surplus funds

RECOMMENDATION

That it be a recommendation to Council:

A) That the budget outcome for the 2016-17 financial year be noted.

B) That the recommended usage for the surplus funds, as proposed In this report, be approved and actioned in the 2017/18 financial year.

C) The decisions arising from this report be moved Into Open Council

REPORT

1. BACKGROUND

The Alice Springs Town Council budgeted to break even at the commencement of the financial year with the adoption of the 2016-17 Municipal Plan. Councils cannot budget for a deficit.

Following the close of the 2016/17 financial year, an additional $1,832,798 has been identified as being available to be used for Council projects, after reimbursing the Capital * Infrastructure Reserve with an amount of $720,000 that had been previously used to purchase the property at 35 Wilkinson Street, in June 2017. This was in accordance with a Council resolution.

Council also supported paying off the Civic Centre loan in the new financial year i.e. 2017/18 for the balance owing of $1,247,200 from surplus funds carried forward from the 2016/17 financial year.

Thus removing the loan amount from the surplus of $1,832,798 leaves a 2016/17 surplus of $585,598.

11 - CNCL 26/02/18

Report No. 163/17f-12

2017/18In regard to the paid off loan, Council has the unspent loan budget for 2017/18 amounting to $531,200.Therefore the total amount available for Council's consideration (2016/17 surplus plus the •loan sayings from 2017/18) is $1,116,798.

The major accounts that contributed to the surplus are as follows:

(26) Rangers Operational = $110,404 (majority of savings is from employee costs and some from After Hours Youth administration charges)(28) Animal Control & Management = $94,675 (majority of savings is from material costs and external labour savings)(46) Flood Management Open Drains = $53,592 (funding received from NTG for storm damage works)(48) Flood Management Stormwater Networks = $44,220 (funding received from NTG for storm damage works)(500) Library Operational = $84,208 (majority of savings is from employee costs and from material

costs and from external labour savings)(74) Flynn Park = $43,416 (majority of savings Is from employee and water costs)(56) General Litter Control = $104,815 (majority of savings is from employee costs)(76) Jim McConville Park = $51,333 (majority of savings is from the employee, water and material costs)(78) Traeger Park Complex = $100,028 (majority of savings is from employee and material costs)(84) Parks & Reserves = $66,057 (majority of savings is from employee costs and materials)(95) Tree & Turf Farm = $63,855 (funding received from NTG for storm damage works including tree replacement funds)(100) Storm Drains Replace Grates = $88,599 (majority of savings Is from material costs)(154) Road Maintenance = $61,397 (majority of savings Is from employee costs)(160) Footpaths/Cycle Tracks Maintenance = $62,504 (majority of savings is from employee costs) (178) RWMF Weighbridge =$267,701 (majority of savings Is from Weighbridge income exceeding budget)(224) Footpath Program = $112,958 (majority of savings Is from capital and salary savings)(240) Civic Centre Operational = $54,429 (majority of savings is from electricity, water, gas and employee costs)(252) Street Lighting = $147,904 (majority of savings is from electricity costs)(548) Media Relations = $51,172 (majority of savings Is from employee costs, materials and external labour)(601) Risk Management Operational = $37,113 (majority of savings Is from employee costs)(606) Netball Stadium = $132,418 (savings is from Invoice coming in lower than expected)

The surplus achieved in the 2016/17 financial year reflects certain accounts wherein favourable cost saving measures have been achieved in the areas of employee costs, water, electricity as well as materials and external labour costs.

2. DISCUSSION

The proposed use of the funds is recommended as follows:

• $40,000 towards the refurbishment of the public library restrooms• $50,000 towards the wash down area at the Regional Waste Management Facility• $240,000 towards the Hartley Street pedestrian refuge« $786,798 towards the part construction of stage 1 of llparpa Road, commencing

works from the Stuart Highway.

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Report No. 163/17f-/3

Total for the above is $1,116,798.

3. POLICY IMPACTS

Nil

4. FINANCIAL IMPACTS

Generation of a surplus gives Council the flexibility needed to set money aside for areas such as Council projects, asset and infrastructure replacement and the achievement of other outcomes for the benefit of the Alice Springs community.

5. SOCIAL IMPACTS

Nil

6. ENVIRONMENTAL IMPACTS

Nil

7. PUBLIC RELATIONS

Nil

8. ATTACHMENTS

Nil

Dinegh’Pillay/BISECTOR FINANCE

13-CNCL 26/02/18

ATTACHMENT 2

15. CONFIDENTIAL REPORTS OF OFFICERS

15.1 Budget Wrap-2016/17 Report No. 163/17f(DF1

This report provides a summary of:

1) . The budget outcome as at 30th June 20172) . Information on recommended usage of surplus funds

RESOLVEDThat it be a recommendation to Council:

A) That the budget outcome for the 2016-17 financial year be noted.

B) That the recommended usage for the surplus funds, as proposed in thisreport, be approved and actioned in the 2017/18 financial year.

C) The decisions arising from this report be moved into Open Council.

Deferred to the November Forum(5329f)

Discussion ensued regarding: Surplus funds, principal loan repayments, carried forward funds and proposed usage of these funds.

Discussion ensued regarding supporting A and C of the recommendation and the proposals within the report provided by the Director.

Councillor Cocking recommended that Council use the Unexpended Funds reserve for the 2016/17 surplus funds until the proposed usage is determined by Council.

Discussion ensued regarding deferring the item to the November forum.

Director Finance will move the funds to the Unexpended Funds reserve for the interim until more direction is provided by Council.

Councillor Price left the Chamber at 9.59pm Councillor Price returned to the Chamber at 10.01pm ■

14- CNCL 26/02/18

14.2.3 Civic Centre LoanReport No.1Q9.17cncl (DR

Since the May 2017 Finance Committee meeting, discussions regarding paying off the Civic Centre loan have been ongoing.

Councillor Melky raised a notice of motion at the May 2017 Ordinary Council meeting, wherein he sought support from the Elected Members to pay off the loan.Further work was requested to be done by Council in respect of the savings, the early payout of the loan would generate.

Moved Councillor Kudrenko Seconded Councillor Melky

That this report be noted and the proposal to pay off the loan early be considered by Council at the October Finance Committee, at which time the 2016/17 surplus will be known and the opportunity may be available to redirect surplus funds to the loan pay out.

WITHDRAWN (19228)

Moved Councillor Melky Seconded Councillor de Brenni

That standing orders be removedCARRIED (19229)

Moved Councillor Kudrenko Seconded Councillor Melky

That standing orders be resumedCARRIED (19230)

Moved Councillor Melky Seconded Councillor de Brenni

a. That the Chief Executive Officer be authorised to pay out the Civic Centre loan (at an estimated amount of $1,263,475.27 inclusive of any penalty charges) with the Westpac Bank and that such action be taken with an effective date of 3rd July 2017 or as close thereto, subject to a final figure being available from Westpac Bank

b. The Capital Infrastructure Reserve to be utilised for this purpose and be considered for reimbursement (subject to available surplus funds) at the October 2017 Finance Committee meeting at which a full report will be presented, following audit, on results of the 2016/2017 financial year.

CARRIED (19231

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ATTACHMENTS

Dmesh PM|a^

To:Cc:Subject:

From:Sent:

Meeta Ramkumar Wednesday, 29 November 2017 3:23 PM Dinesh Pillayjocelyn NATHANAEL- WALTERS; Lee WilliamsRE: ASTC - Motion - Loan funds to be paid to Ratepayers

Hi Dinesh (please forward this to Rex as it appears I do not have his email in my address book).

In response to your query below, please note Option A below is strongly opposed and it is considered this option does not reflect responsible use or management of public money.

In our opinion:• Under the Local Government Act (Act), elected members are collectively responsible for ensuring (1) it

manages the financial affairs of the council in a fair, accountable and transparent manner; and (2) the proper management and use of public money which is supported by a budget approved by council.

• It appears elected members have misinterpreted a budgeted payment that is no longer required as "surplus council funds". However if the council has budgeted for a payment which is no longer required, then the council must revise its budget accordingly. There is no provision under the Act which allows a council to approve the payment of council funds to ratepayers for no apparent reason. This would not be reflective of robust financial management and is not supported by the department.

• Under the Act, a council may approve a rate concession under Part 11.8 (subject to certain conditions), which would effectively result in a reduction in the level of revenue expected to be raised during the year. In this instance, the council will need to revise its budget to reflect the reduced revenue and, accordingly reduce its expenditure, as a council cannot budget for a deficit. A council also cannot use its own funds to offset ratepayer debts.

• A refund of rates can only be made if the council collected the rate in error or if it was a special rate and did not use the funds for the purpose for which it was collected.

• The Act does not provide for a council to make payments to ratepayers for no apparent reason - all payments must be for legitimate council costs. A generic payment to ratepayers does not follow prudent procurement practices. As such, the payment and procurement aspect would also be questioned as it is a material amount that the council is proposing to pay.

I trust this clarifies our opinion on the matter.

Please do not hesitate to give me a call if you would like to further discuss or clarify anything in the above.

Thanks

Meeta Ramkumar (FCPA)Director Sustainability and Compliance Local Government and Community Development Division Department of Housing and Community Development Northern Territory Government

2nd Floor RCG House, 83-85 Smith Street Darwin GPO Box 4621, Darwin NT 0301

p ... 08 8999 8868 m... 0429 999 364 e ... [email protected]

Our Vision: Creating a public sector that provides the highest quality service to Territories.Our Values: Commitment to Service | Ethical Practice | Respect | Accountability | Impartiality | Diversity

The information in this email is intended solely for the addressee named. It may contain legally privileged or confidential information that is subject to copyright Use or transmittal of the information in this email other than for authorised NT Government business purposes may constitute misconduct under the NT Public Sector Code of Conduct and could potentially be an offence under Ihe NT Criminal Code. If you are no I the

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mailto:[email protected]:[email protected]

Mem

oran

dum

16- CNCL 26/02/18

Alice SpringsTOWN COUNCIL

TO: CEO REX MOONEY DATE:17 November 2017

FROM: COUNCIL SOLICITOR CHRIS TURNER

RE: PROPOSAL TO CREDIT PART OF RATES COLLECTED 2017/18

Background

At its Ordinary meeting held 23 October 2017, Council resolved after division:

That the Alice Springs Town Council seek direction from the Alice Springs rate paying community, through a public consultation process, regarding the $460,000.00 loan principal repayment, and the $68,200.00 loan interest repayment no longer required and collected in budget financial years 2017/18- total amount $528.000.00.

Option A: Community to have the full amount credited back on their rates.

Option B: Alice Springs Town Council Elected Members to decide how to invest orspend the funds.

That Alice Springs Town Council seek direction from the Alice Springs rate paying community from option A or option B through a public consultation.

The reference to the loan principal and interest payments is in relation to the loan raised in 2005 to build the Civic Centre. The reference to payments being no longer required is to the decision taken by Council on 26 June 2017 to pay out the loan early.

Declaration of rates 2017/18

The Municipal Plan 2017/18 was adopted by Council at the same Ordinary meeting on 26 June 2017. An underlying budgetary assumption was that there would be no early repayment of the loan in the 2017/18 year. A previous motion to this effect had failed for lack of a seconder.

The plan included a declaration of rates for the relevant year. This was in compliance with section 155(1) of the Local Government Act (the Act) which provides that a 'council must, on or before 31 July in each year, declare rates (general rates) on allotments throughout the area to raise the amount the council intends to raise for general purposes for the financial year\

The declaration was published in the 30 June 2017 edition of the Centralian Advocate, in conformity with the requirement in section 158(1 )(b) of the Act to do so within 21 days of making the declaration.

The decision to pay out the loan early, though taken at the same meeting that declared the rates for 2017/18, had no bearing on the assumption that there would be no early repayment, which was a predicate of the rates declaration.

Auditor's query

The 23 October 2017 resolution received media attention and in consequence Council's auditor emailed Director Finance Dinesh Pillay on 25 October asking 'if the Department of Housing and

l

17- CNCL 26/02/18

Community Services (Local Government) and/or legal advice had been sought as it could be an issue if legally, it cannot be paid back'.

I have accordingly been requested to provide legal advice with respect to implementation of the resolution. Clearly, the auditor’s query concerns Option A of the resolution, I, too, will focus on that option but will also have something to say about Option B and more generally the public consultation process mentioned in the resolution.

General funds

On receipt of rates, they become part of the general funds of Council. There is no special account set aside into which the rates payments are deposited, far less a trust account that requires those funds to be used for the benefit of rate payers only. Rates income is treated no differently than any other income class of Council and loses its characterization as such immediately upon payment into the general funds of Council.

This is recognised in section 155(1) of the Act, previously cited, that requires the declaration ‘to raise the amount the council intends to raise for general purposes for the financial year’ [my emphasis].

Notional amount

The $528,000 referred to in the resolution is by simple analysis a notional amount. There is no deposit in a special account for that particular amount waiting to be 'credited back' or invested or spent. It is no more or no less than a calculation of Council’s savings from paying out the loan early.

Certainly, the assumption that the principal and interest payments would continue on through the course of the 2017/18 financial year was factored into the budget. However, in the very nature of a budget, it was only one of many assumptions which underlay the process - not all of which may prove to be the case. For a council, it must be a very rare thing indeed where, because an expected item of expenditure does not materialize during the budgeted year, the found 'savings' are directly returned to the ratepayer (assuming of course that such an action is lawful) rather than being left to go towards a surplus for the year or for reallocation to another purpose.

Fair effective and efficient use of resources

Now, section 13 of the Act sets out the objectives of a council. One of them (sub-section (f)) is ‘to seek to ensure that council resources are used fairly, effectively and efficiently’.

Accepting that revenue received from rates is somehow not quarantined and set apart from the other sources of revenue, I have no difficulty in forming the view that it forms part of a council's resources and therefore is subject to the imperative contained in sub-section (0-

It follows that any decision of a council to refund or ‘credit back’ a proportion of rates paid pursuant to a declaration of rates validly made, by reference to a supposed saving in the budget, is susceptible to being legally challenged and overturned as not being a fair, effective or efficient use of a council resource; all the more because another legislated objective of a council is ‘generally to act at all times in the best interests of the community as a whole' (sub-section (h)).

Mind you, I am not saying that such a challenge to this Council, if indeed there was anyone with a sufficient interest to do so, would be successful. What is certain, however, is that it is arguable and if commenced would be heard and determined in the Supreme Court of the Northern

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18- CNCL 26/02/18

Territory, with all the costs which that would entail - less so, but still substantial, if Council was able to fend off the challenge.

If, nevertheless, Council is minded to pursue Option A, it would be my advice to first obtain the opinion of Queens or Senior Counsel as to its power to do so.

Practical considerations

The one problem that immediately springs to mind in implementing Option A goes to the fact that a significant number of rateable properties will change hands during the course of the year. The proposal to credit back part of the rates paid would mean that the new owner would receive the credit where the old owner had paid the rates. Any adjustment of rates at the time of sale would only go a minimal way towards redressing this inequity.

I am sure that other difficulties or unforeseen consequences would also arise.

Amend the rates declaration?

I anticipate a question along the lines of why not amend the rates declaration to take into account the savings represented by the early repayment of the loan so that the direct return to the rate payer would be merely by way of refund of over-payment? After all, section 128 of the Act permits a council, subject to very limited exceptions, to amend its budget throughout the year.

The simple answer to this question is whilst the Act enables a council to amend its budget, not so for the rates declaration; for, as previously noted, section 155(1) requires that the declaration be made no later than 31 July of the relevant year.

Public consultation

I really struggle to understand what is intended to be the public consultation process captured by the 23 October 2017 resolution. It seems to require two different processes, one engaging only the ‘rate paying community" and the other the broader community. Which is to come first? Is each to be given the same regard and weighting? How is Council going to strike a balance between the two?

Insofar that Council intends to seek direction from the rate paying community as to how it should use its resources, that I think would also invite a challenge in the Supreme Court for essentially the reasons I have given before.

Option B

This option labours under the same difficulty that there is not in any real or practical sense 'funds' awaiting a decision of how to be invested or spent,

Legal professional privilege

Legal professional privilege is asserted in relation to this advice.

3

19- CNCL 26/02/18

13.2 Corporate and Community Services Committee

13.2.1 Minutes of the Open Section of the CCS Committee Meeting Held on 20 November 2017(Item 4.1)

Moved Councillor Price Seconded Councillor Melky

That the minutes of the Open Section of the Corporate and Community Services Committee meeting held on 20 November 2017 be taken as read and confirmed as a true and correct record of the proceedings of that meeting.

(6301 ccs)

CARRIED (19522)

13.2.2 Directorate Update (Item 9.1)

Report No. 11/18ccs (DCCS)

This report provides an update of current Corporate and Community Services projects,

programs and events.


That the report be received and noted.

(6302ccs)

CARRIED (19523)

13.2.3 Alice Springs Town Council - Flying Flags (Item 9.2)


Discussion and community consultation has previously occurred in regard to flying

Aboriginal and Torres Strait Islander flags, at Anzac Hill. Council has two flag policies:

102A Anzac Hill Flags; and 103 Civic Centre - Flags.

That Council provide direction.

That Alice Springs Town Council make changes to policy Statement of Policy 102A Anzac Hill Flags

20 - CNCL 26/02/18

POLICY STATEMENTThe Council will permit the Australian National Flag and/or the Northern Territory flag to be flown from the flag poles on Anzac Hill. The Council shall also permit on ceremonial occasions the Aboriginal flag to be flown on Anzac Hill in strict accordance with the rules of flag protocol.

LOST (6303ccs)

Cr. Satour tabled a petition.

In accordance with meeting procedure, this item will be held over and discussed at the March

Ordinary Council Meeting.

13.2.4 Local Government Association of the Northern Territory - Call for Policy and Action Motions(Item 9.3)


The Local Government Association of the Northern Territory (LGANT) is calling for Policy

and Action Motions.


That the report be received and any motions identified.(6304ccs)

CARRIED (19524)

13.2.5 Minutes and Recommendations from the Seniors Coordinating Committee Meeting held 15November 2017 (Item 10.1)


That the minutes of the Seniors Coordinating Committee Meeting held 15 November 2017 be received and recommendations adopted.

(6305ccs)

CARRIED(19525)

21 - CNCL 26/02/18

13.3.6 Minutes and Recommendations from the Australia Day Coordinating Committee Meeting

held on 11 December 2017 (Item 16.21


That the minutes of the Australia Day Coordinating Committee Meeting held 11 December 2017 be received and recommendations adopted.

(6306ccs)

CARRIED(19526)

13.2.7 Minutes and Recommendations from the Australia Day Coordinating Committee Meetingheld on 22 January 2018 (Item 10.31


That the minutes of the Australia Day Coordinating Committee Meeting held 22 January 2018 be received and recommendations adopted.

(6307ccs)

CARRIED(19527)

13.2.8 Mayor Ryan - Alcohol Policy Review Document: The “Riley Report” (Item 11.1)

Mayor Ryan advised that within the document over 100 recommendations have been

outlined during the policy review.

Discussion ensued regarding the policy review and recommendations from the document.

Moved Councillor Cocking Seconded Councillor Paterson

That Council support all the recommendations within the “Riley Report”. That Council advise the Chief Minister, the Leader of the Opposition and Independent Members and call for its full implementation.

(6308ccs)

CARRIED (19528)

22 - CNCL 26/02/18

13.3 Technical Services Committee

13.3.1 Minutes of Open Technical Services meeting held 20 November 2017 (Agenda Item 4.1)

Moved Mayor Ryan Seconded Councillor Auricht

That the minutes of the Open Section of the Technical Services meeting held on 20 November 2017 be taken as read and confirmed as a true and correct record of the proceedings of that meeting.

(4309ts)

CARRIED (19529)

13.3.2 Directorate Update (Agenda Item 9.1)

Report No: 9/18ts (DTS)

This report provides an update of current Technical Services, programmes, projects and

events for January 2018.


That this report be received and noted.(431 Ots)

CARRIED(19530)

13.3.3 Update on the Proposed Path along Ragonesi Road (Agenda Item 9.2)

Report No: 8/1 Ots (Ml)

Update on the proposed share path along Ragonesi Road, from the corner of Palm Circuit

and Ragonesi Road to the Ross highway.


That Council continues to construct the path along Ragonesi Road as per Council Resolution No: 19217.

(431 Its)

CARRIED(19531)

23 - CNCL 26/02/18

13.3.4 Purchase of a Replacement Loader for the Regional Waste Management Facility (Agenda

Item 9.3)Report No: 10/18ts (RWMFM)

This report outlines the advantages to Council with the replacement of the existing JCB

Loader with a loader of increased capacity at the Regional Waste Management Facility

(RWMF).


That Council approves the purchase of a 20 tonne loader and trade of existing loader(4312ts)

CARRIED (19532)

13.3.5 Proposed Skate/BMX Park at Newland Park (Agenda Item 9.4)

Report No: 14/18ts (PAO)

The purpose of this report is to provide Council with a draft concept plans and options for a

proposed Skate / BMX Park at Newland Park.

Moved Councillor Paterson Seconded Councillor Price

Amendment:That Council conduct public consultation on a proposed skate boarding and BMX park in Alice Springs, including the potential development of a family skate park at Newland Park.

(4313ts)

CARRIED (19533)

13.3.6 Proposed Shared Path & One-Way Vehicle Traffic Along De Havilland Drive (Agenda Item

9.5) Report No: 15/18ts(PC)

Proposed shared path and one-way vehicle traffic along De Havilland Drive.


That Council goes out to public consultation in regards to the proposed shared path and one-way vehicle traffic along De Havilland Drive.

24 - CNCL 26/02/18

(4314ts)

CARRIED(19534)

13.3.7 Minutes from the Development Committee Meeting held on 5 February 2018 (Item 10.11


That the minutes of the Development Committee Meeting held on 5 February 2018 be received and noted.

(431 Sts)

CARRIED(19535)

13.3.8 NT Por 6811 -69 Bullen Road - PA2016/0563 (Agenda Item 10.1.1)


That Council supports the draft letter from the Manager of Developments for 69 Bullen Road

(431 Sts)

CARRIED(19536)

13.3.9 Lot 5687 - 25 Commonage Road - PA2017/0428 (Agenda Item 10.1.2)


1. The application is not supported by Council in its current form.2. Council is supportive of the proposal as an overflow parking site only,

provided it is managed and regulated by a recognised authority.

(4317ts)

CARRIED(19537)

25 - CNCL 26/02/18

14.3.10 Lot 6178-21 Kilqariff Crescent - PA2018/0009 (Agenda Item 10.1.3)


That Council is not supportive of permanent demountable structures within a residential block as per resolution number 15575. Hence this application is not supported.

(431 Sts) CARRIED (19538)

14.3.11 Juvenile Detention Centre - Desert Knowledge site - Mayor Ryan

(Agenda Item 10.1.4)


That Council Supports the CEO to conduct further investigations on the proposed new site for the Juvenile Detention Centre with the Office of the Chief Minister.

(4319ts)

CARRIED(19539)

14. REPORTS OF OFFICERS

14.1 CHIEF EXECUTIVE OFFICER

14.1.1 CEO ReportReport No. 22/1 Bend

Moved Councillor Auricht Seconded Councillor de Brenni

That this report be received and noted.CARRIED (19540)

14.2 DIRECTOR FINANCE

Nil

14.3 DIRECTOR CORPORATE AND COMMUNITY SERVICES

Nil

14.4 TECHNICAL SERVICES

Nil

26 - CNCL 26/02/18

15. QUESTIONS WITHOUT NOTICE

15.1 Cr. Melkv - Policies on alcohol advertising on all infrastructure that is owned andoperated by Alice Springs Town Council, sporting and otherwise

Cr. Melky requested clarification on the policies, terms and conditions of grant funding by Council, sporting events and otherwise in relation to alcohol.What is our policy in granting funding for an event that involves alcohol?

15.2 Cr. Cocking - Red Gums in Todd River burning

Mayor Ryan advised this was followed up over the weekend and the fire brigade dispatched two vehicles. The tree is on Northern Territory Government land, outside the Council boundary.Director Technical Services, Mr Scott Allen clarified the Council boundary: Palm Circuit is the southern point and 300m north of Schwartz Crescent.Director Technical Services, Mr Scott Allen advised that the Committee members are currently being finalised.

16. GENERAL BUSINESS

Nil

17. MATTERS FOR MEDIA ATTENTION

Media matters will be covered via the media attendance at this meeting.

18. NEXT MEETING: Monday, 26 March 2017 at 6.00pm

19. ADJOURNMENT OF OPEN MEETING

Moved Councillor de Brenni Moved Councillor Satour

That the Council stands adjourned and resumes in the Confidential Section.

CARRIED (19541)

The meeting adjourned at 8.03pm.

Confirmed on_________________

CHAIRMAN___________________

Date

Documents

MINUTES OF THE ORDINARY MEETING OF THE THIRTEENTH …... · 4. WELCOME TO THE GALLERY AND PUBLIC QUESTION TIME The Mayor welcomed those present in the gallery. 5. DISCLOSURE OF INTEREST