2021-06-08 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                       8 JUNE 2021


4     2021-22 FEES AND CHARGES

Author            Manager Financial Services, Trent Grauf
                  Corporate Services Department

Index             ECM/ Subject/ 2021 - 2022 Budget

Attachments       1.    2021-22 Schedule of Fees and Charges (85 page attachment provided
                        separately to this agenda)


EXECUTIVE SUMMARY
General cost-recovery fees and commercial charges are expected to generate approximately
$17.4 million in the 2021-22 financial year, representing just over 16% of Council’s annual
operating revenue. Fees and charges are set where possible to reflect cost recovery, with
commercial charges set at full cost after consideration of market factors. The 2021-22 fees and
charges schedule is provided in Attachment 1.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the Services & Organisation
Committee Meeting dated 8 June 2021 and pursuant to sections 97, 98 and 262(3)(c) of the Local
Government Act 2009, fix, for the 2021-22 financial year the cost-recovery fees and commercial
charges provided as Attachment 1 to the report.


REPORT
Section 97 of the Local Government Act 2009 requires that cost-recovery fees are to be set at a
level equal to or less than cost of providing a particular service. As part of the 2021-22 budget
development, fees and charges were reviewed to ensure that where possible prices were set for
anticipated volumes at cost reflective levels in line with legislation. Increases identified at levels
above inflation were subsequently presented to Councillors through budget workshops for
discussion and agreement.
Charges which are commercial in nature are set in accordance with Section 262(3)(c) of the Local
Government Act 2009. Commercial charges are applicable to both of Council’s nominated
business activities, Waste Management and the Holiday Parks. Full cost price modelling was
undertaken for both of these activities to ensure that charges reflected full cost and a user pays
philosophy, and no general rate subsidy is required.

Previous Council Consideration
Council considers fees and charges levels annually as part of the budget process. Fees and
charges can also be amended, removed or introduced during a financial year via Council
resolution.
Finance
General cost-recovery fees and commercial charges are expected to generate approximately
$17.4 million in the 2021-22 financial year, representing just over 16% of Council’s combined
annual operating revenue.
Risks & Opportunities
Failure to appropriately adopt general cost-recovery fees and commercial charges may result in
Council being left without the head or power to charge for goods and services, compromising
ongoing financial sustainability and Council’s reputation.


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