CCC Special Meeting 2025-06-10

Clarence City Council Chambers, Bligh Street, 6pm

1. Acknowledgement of Country
2. Apologies
   • None listed
3. Declarations of Interests
4. Estimates, Capital Expenditure Programme, Fees and Charges
   That Council:
   1. Adopts the Estimates for financial year 2025/2026 as set out at Attachment 1.
      • Welcome to week one of Council's budget process for 2025! The process takes two weeks because the rates have to be set with the Estimates in mind, and the calculations are... complicated... if Council decides to change the Estimates. My notes here are a summary of a summary, and you should check the agenda proper if you want to dig further. Also next week are an updated Long Term Financial Management Plan, and the 2025/26 Annual Plan.
      • Top line: The Estimates as recommended require a 4.85% increase in revenue raised by rates. The actual rate increase per property may be more or less than 4.85%, watch this space next week.
      • "Growth in the rates base during 2024/2025 is estimated at 2.617%. The growth rate is higher than a normal year due to the proposed rating changes to short stay accommodation properties and those vacant land properties classified as either V2 – Vacant Land Commercial or V3 – Vacant Land Industrial by the office of the Valuer General."
      • Decisions in 2020/21 to achieve a 0% rate increase, and in 2022/23 and 2023/24 to increase rates below the Consumer Price Index, continue to present problems for budgeting. CPI has increased more than expected over the last few years.
      • Population growth in Clarence has been well above the state average for the last decade, which has increased waste management demand and maintenance requirements.
      • "As in previous Estimates, provision has once again been made for the portion of the 2025/2026 rates equivalents payable by the operators of the Hobart International Airport, which are considered doubtful. Discussions has now begun on the future rates that will be payable by the Hobart International Airport but are yet to be finalized. The provision therefore continues to be made, to ensures that there is no adverse impact on these Estimates, or future Estimates."
   2. Adopts the Capital Expenditure Programme for financial year 2025/2026 as set out at Attachment 2.
      • Top line: The 2025/26 Capital Expenditure Programme provides for works totalling $26.8 million in value.
      • The purchase of the Mines Building at 30 Gordons Hill Road is expected to settle later this month at a cost of $23.5 million plus transfer expenses. While loans of up to $25 million were approved by Council in April for this purpose, the purchase was made from cash holdings, and borrowings are not expected to be required within the next 5-10 years.
      • Council lists as major projects (≥$1 million in bold): Road reseal programme; Major dig-outs reconstruction; Footpath/ kerb ongoing projects; Malunna & Beach Road Intersection upgrade; Scotts Road seal gravel road; Howrah Road Bicycle Safety Improvements; Wellington Street new Footpath (north); Wentworth Street Stormwater Upgrade; Duntroon Drive Detention Basin; Geilston Bay Oval 1 various works; Richmond Oval perimeter works; Play space renewal and upgrades ongoing; Bellerive Beach Park soft fall upgrade; Rosny Parklands Circuit Track; Single Hill Track – Summit to Kirra Road; Chambers Redevelopment; Rosny Early Learning Centre Redevelopment; Cambridge Pavilion Concept Design; Kangaroo Bay Ground Maintenance Storage Facility; Rosny Farm Creative Industries Precinct prelim plan; Lindisfarne Ferry Terminal Infrastructure
      • ~$50.5 million of unspent capital funding will be carried forward from 2024/25.
   3. Adopts the List of Fees and Charges for financial year 2025/2026 as set out at Attachment 3.
      • Top line: "The average proposed increase for Council’s fees and charges is 2%, which is slightly higher than CPI."