Addendum Agenda of Ordinary Meeting

803

Ordinary Meeting 27 April 2016

Mayoral Report

MAYOR 01

Infrastructure coming to Liverpool

Strategic Direction

Accessible Connected City

Provide safe and easy travel with a high quality road and traffic management network

Key Policy

Traffic and Transport Plan

File Ref

101026.2016

RECOMMENDATION

That Council:

1. Congratulates the State and Federal governments for their initiative and foresight to provide the infrastructure for Liverpool’s future.

2. Congratulates the residents of Liverpool and council staff who worked hard to lobby the State and Federal Governments for these projects.

3. Commits to supporting these new projects allowing the growth and development of Liverpool as another centre of Greater Sydney with the interests of our residents at the heart.

4. Lobbies the State Government for an express train service running north to south from Parramatta to Campbelltown through Liverpool.

REPORT

Liverpool has received two exciting new announcements about prospective infrastructure coming to Liverpool.

We now have confirmations from both State and Federal government that serious consideration is being given to establishing an extension of the South West Metro from Bankstown to Liverpool and a fast train connecting Badgerys Creek with Greater Sydney.

The commitment of Council to ensure Liverpool is not left out when it comes to major infrastructure is being fulfilled through the tireless efforts of the community and council staff calling for the South West to be recognised as a major hub for the future of Sydney.

Consultation between the State Government and the Liverpool Community for a planned City Metro route from Bankstown to Liverpool takes us another step forward in having fast and effective transport to and from the CBD.

A metro train cutting travel times to 30 - 40 minutes will make Liverpool more accessible and bring more jobs and more business to our booming city.

On the 11^th March Prime Minister Malcolm Turnbull also announced plans for a high speed rail connection between Badgerys Creek and the Sydney CBD ensuring that our future airport will be accessible to all.

This fast rail connection will be pivotal to the success of the Western Sydney Airport and will provide the ground work for future development and prosperity in the area.

The success of Parramatta Council in creating a second major CBD in Sydney involving billions of dollars of state infrastructure is largely due to the willingness of councillors to generate growth and support for their region.

Liverpool needs to follow the example set by Parramatta and create the third major city of Sydney where the government can invest in infrastructure and entertainment venues for the benefit of our residents.

Liverpool certainly has this potential and the State Government is taking notice of what we have to offer.

We need to continue to expand this city to encourage greater involvement from both private enterprise and government agencies.

We have the ability to grow Liverpool from east to west to Badgerys Creek Airport.

The rail lines are already in place for an express service from Parramatta to Campbelltown, running through Liverpool and connecting the major centres of Sydney’s West.

Travel times can be slashed to 10 – 15 minutes between Sydney’s Western hubs and there is potential to continue infrastructure development to Penrith.

If council maintains a vision of growth and development in Liverpool we can fulfil our destiny to be a new centre of Sydney.

The two announcements from the Federal and State Governments give Liverpool the right base for our future.

As Councillors we must ensure we cultivate and protect that future.

Our residents voted for us to ensure Liverpool would position itself as a leader in the vast city of Greater Sydney and we now have that opportunity.

CONSIDERATIONS

Economic and Financial	Deliver and maintain a range of transport related infrastructure such as footpaths, bus shelters and bikeways. Encourage and promote businesses to develop in the hospital health and medical precinct (of the City Centre). Facilitate economic development.
Environmental and Sustainability	Promote an integrated and user friendly public transport service. Support the delivery of a range of transport options.
Social and Cultural	Raise awareness in the community about the available services and facilities.
Civic Leadership and Governance	Undertake communication practices with the community and stakeholders across a range of media. Provide information about Council’s services, roles and decision making processes. Deliver services that are customer focused. Actively advocate for federal and state government support, funding and services.

ATTACHMENTS

Nil

805

Ordinary Meeting 27 April 2016

Chief Financial Officer

CFO 05

Draft Delivery Program and 2016-17 Operational Plan and Budget (Including Revenue Pricing Policy)

Strategic Direction	Leading Proactive Council Position Council as an industry leader, delivering best practice and innovation
Key Policy	Long-Term Financial Plan
File Ref	091641.2016
Report By	Vishwa Nadan - Manager Financial Services
Approved By	Gary Grantham - Chief Financial Officer / Director Corporate Services

Executive Summary

This report proposes to place the draft 2013-17 Delivery Program and 2016-17 Operational Plan and Budget on public exhibition to allow for public comments and submissions.

Section 404 and 405 of the Local Government Act 1993 requires Council to review its Delivery Program and adopt its annual Operational Plan including Budget by 30 June each year. The plan must be exhibited for public comment and submissions for at least 28 days.

The 2013-17 Delivery Program is a statement of commitment to the community from each newly formed council. It outlines Council’s response to the Community Strategic Plan, how it will contribute to achieving these goals during its term of office and what its priorities will be. The 2016-17 Operational Plan and Budget is an annual plan. It focuses on the specific actions that will be required to be undertaken to achieve a financial position consistent with Councils Fit For the Future (FFtF) submission.

Council is one of five councils that is not being amalgamated but is yet to be assessed as "Fit". As such, it is prudent for Council to approve a 2016/17 Budget as close as possible to June 2015 FFtF submission. Since the FFtF submission, significant budget pressures have materialised. Management has suggested initiatives to arrive at a similar budget position as per the FFtF submission.

For improved integration, the 2013-2017 Delivery Program and 2016-17 Operational Plan have been incorporated into one document. The draft documents are attached to this report under separate cover (Appendix 5).

The Statement of Revenue Policy outlines all of Council’s proposed fees and charges for the next year. The draft documents are attached to this report under separate cover (Appendix 6).

RECOMMENDATION

That Council:

1. Places the draft Delivery Program and Operational Plan including the draft 2016-17 Budget and Revenue Pricing Policy (Schedule of Fees and Charges) on public exhibition for a period of 28 days to allow for public comments and submissions.

2. Receives a further report after a review of public submissions at the June Council meeting

REPORT

Background

The 2013-17 Delivery Program is a statement of commitment to the community from each newly council. It outlines Council’s response to the Community Strategic Plan, how it will contribute to achieving these goals during its term of office and what its priorities will be. The 2016-17 Operational Plan and Budget is an annual plan. It focuses on the specific actions that will be required to be undertaken to achieve a financial position consistent with Councils Fit For the Future (FFtF) submission.

Draft Operational Plan (2016-17 Operational and Capital Budgets)

Council is one of five councils that is not being amalgamated but is yet to be assessed as "Fit". As such, it is prudent for Council to approve 2016/17 Budget as close as possible to the June 2015 Fit For the Future (FFtF) submission of $0.888m deficit. Since the FFtF submission, significant budget pressures have materialised:

· Employee Costs (Award and headcount increase) - $1.93m

· Asbestos remediation & Waste Services - $2.43m

· Unrealised efficiencies e.g. Cleaning/Services to the Community $2.40m

· Leisure Centres /Carnes Hill $1.71m

· LEP and additional reviews & committees $1.20m

· Depreciation $1.00m

As a result of the change in Council’s operating environment, Management has consulted with Councillors over three Budget Briefing sessions highlighting possible actions to achieve the original FFtF submission. Management is proposing a Budget with a deficit of $0.864m for 2016-17 which improves year on year to achieve a surplus of $2.329m in 2019-20. Refer to Appendix 1 and 2 for further details that support the Budget.

Council's FFtF Operating Performance Ratio will not be achieved until 2019-20, refer to Table 1. The proposed Budget incorporates all actions listed in Table 3 further below. Table 1 also highlights that if Council were to adopt “Net Operating Results” with greater deficits than the proposed Budget, the FFtF Operating Performance Ratio will not be achieved by 2020-21. This projection assumes a consistent appetite for actions from Year 2 to Year 4. Due to the three year averaging of results to determine the FFtF ratios, it is beneficial to implement budget measures in 2016-17 financial year as they will be effectively tripled for the FFtF calculations.

The proposed 2016-17 Capital Expenditure is summarised in Table 2.

Assumptions supporting the proposed Budget and additional actions proposed for Year 2 to Year 4 are contained in Appendix 3. Further capital expenditure details are contained with the Delivery Program in Appendix 5.

Table 1

Table 2

Table 3

Draft 2013-17 Delivery Program

The Delivery Program documents all of the principal activities which Council will be delivering during its term of office. It is Council’s commitment to the community and outlines how it will contribute to achieving the strategies listed in the Community Strategic Plan. The Delivery Program addresses all of Council’s operations and allocates high level responsibilities for each activity.

The draft 2016-17 Operational Plan outlines the specific actions which Council will deliver as well as the draft budget for the 2016-17 financial year and Statement of Revenue Policy (Fees and Charges).

For improved integration and functionality, the 2013-17 Delivery Program and draft 2016-17 Operational Plan have been included in the same document. It includes the following:

· Council's principal activities over four years:

· Performance measures to determine effectiveness;

· 2016-17 Actions;

· 2016-17 draft Budget;

· 2016-17 proposed Capital Works Program; and

· 2016-17 draft Revenue Pricing Policy (proposed rates, fees and charges).

Consultation During the Exhibition Period

The draft Delivery Program and Operational Plan and Budget will be available to residents to seek their input through the following methods:

· Hard copies will be available at various locations during the public exhibition period including Council’s Customer Service Centre and all libraries;

· Presentations will be made at Community Forum meetings;

· The document will be placed on Council’s website at www.liverpool.nsw.gov.au;

· Public notices will be placed in local papers;

· Information will be posted on Council’s social networking and community engagement sites, including Liverpool Listens and Facebook.

Council will consider all submissions and comments at its June Council meeting with a recommendation that the Draft Delivery Program and Operational Plan including the draft 2016-17 budget, proposed 2016-17 Capital Works Program and the draft 2016-17 Revenue Pricing Policy (proposed rates, fees and charges) be adopted.

Revenue Policy

The Statement of Revenue Policy outlines all of Council’s proposed fees and charges for the next year. A detail listing is contained within Appendix 6; however a listing of Fees that have changed by more than 5% appears in Appendix 4.

CONSIDERATIONS

Economic and Financial	Further develop a commercial centre that accommodates a variety of employment opportunities. Deliver and maintain a range of transport related infrastructure such as footpaths, bus shelters and bikeways. Encourage and promote businesses to develop in the hospital, health and medical precinct (of the City Centre). Provide efficient parking for the City Centre. Enhance the environmental performance of buildings and homes. Deliver a high quality local road system including provision and maintenance of infrastructure and management of traffic issues. Facilitate economic development. Facilitate the development of new tourism based on local attractions, culture and creative industries. Further develop a commercial centre that accommodates a variety of employment opportunities (in the City Centre). There are no economic and financial considerations.
Environmental and Sustainability	Minimise household and commercial waste. Manage the environmental health of waterways. Manage air, water, noise and chemical pollution. Retain viable opportunities for local food production while managing land use to meet urban growth. Enhance the environmental performance of buildings and homes. Protect, enhance and maintain areas of endangered ecological communities and high quality bushland as part of an attractive mix of land uses. Raise community awareness and support action in relation to environmental issues. Promote an integrated and user friendly public transport service. Support the delivery of a range of transport options. There are no environmental and sustainability considerations.
Social and Cultural	Raise awareness in the community about the available services and facilities. Provide cultural centres and activities for the enjoyment of the arts. Support policies and plans that prevent crime. Preserve and maintain heritage, both landscape and cultural as urban development takes place. Regulate for a mix of housing types that responds to different population groups such as young families and older people. Support community organisations, groups and volunteers to deliver coordinated services to the community. Promote community harmony and address discrimination. Support access and services for people with a disability. Deliver high quality services for children and their families. There are no social and cultural considerations.
Civic Leadership and Governance	Act as an environmental leader in the community. Undertake communication practices with the community and stakeholders across a range of media. Foster neighbourhood pride and a sense of responsibility. Facilitate the development of community leaders. Encourage the community to engage in Council initiatives and actions. Provide information about Council’s services, roles and decision making processes. Deliver services that are customer focused. Operate a well developed governance system that demonstrates accountability, transparency and ethical conduct. Actively advocate for federal and state government support, funding and services. There are no civic leadership and governance considerations.

ATTACHMENTS

1. Appendix 1 Budget Summary View

2. Appendix 2 Budget By Directorate View

3. Appendix 3 Assumptions Table View

4. Appendix 4 Fees Greater Than 5%View

5. Appendix 5 For Public Exhibition - Delivery Program and Operational Plan PDF View (Under separate cover)

6. Appendix 6 Draft Fees and Charges FY 2016-17 View (Under separate cover)

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Ordinary Meeting 27 April 2016

Planning and Growth Report

DPG 05

Planning Agreement Policy

Strategic Direction	Liveable Safe City Deliver an efficient planning system which embraces sustainable urban renewal and development
Key Policy	Urban Development Plans
File Ref	075691.2016
Report By	Barry Millwood - Executive Planner
Approved By	Toni Averay - Director Planning & Growth

Executive Summary

In recent years Council has entered into a number of Planning Agreements and officers are currently in negotiation with developers regarding several new proposals. In order to have a consistent and transparent process, a policy for Planning Agreements is recommended. The policy will establish a fair, transparent and accountable framework governing the use of Planning Agreements.

The policy will provide guidance on procedures and also specify the information to be submitted for the purpose of preparing a Planning Agreement.

RECOMMENDATION

That Council:

1. Endorses the principles of the draft Planning Agreement Policy.

2. Exhibits the draft Planning Agreement Policy.

3. Notes that a report be brought back to Council following exhibition of the draft policy.

REPORT

Background

New urban development creates the need for additional public amenities and public services. Council has a number of Contributions Plans and Planning Agreements in place to provide funding for additional public amenities and public services associated with new urban development.

It is anticipated that there will be further Planning Agreements negotiated in the future and it is recommended that a policy be adopted to guide the negotiation of such agreements. The purposes of the draft policy are to:

· Establish a framework to guide the preparation of Planning Agreements under the Environmental Planning & Assessment Act 1979 (EP&A Act);

· Establish a fair, transparent and accountable framework governing the use of Planning Agreements;

· Specify the information to be submitted for the purpose of preparing a Planning Agreement;

· Provide guidance on procedures;

· Adopt innovative and flexible approaches to the provision of infrastructure and other public benefits in a manner that is consistent with Council’s Community Strategic Plan; and

· Achieve planning benefits to the wider community (this is supported by the Practice Notes for Planning Agreements, issued by the then Department of Infrastructure Planning and Natural Resources, now Department of Planning and Environment. A planning benefit means a development contribution that confers a net public benefit, that is, a benefit that exceeds the benefit derived from measures that would address the impacts of a particular development on surrounding land or the wider community).

Overview of Planning Agreements

A Planning Agreement is normally, but not exclusively, prepared in the following circumstances:

· A proposed change to a State Environmental Planning Policy or Local Environmental Plan to permit a development, or a development application for development of an opportunity site in Liverpool City Centre;

· A development application, where additional impacts are identified and / or variations to standards are proposed, such as increased height or floor space ratio;

· A development application, where there are commitments to specific actions from the developer and Council; and

· A shortfall in the provision of a particular item such as car parking in Liverpool City Centre.

Planning Agreements generally involve an agreement between a developer and Council whereby the developer, when undertaking a development, agrees to provide a public purpose such as:

· Land dedicated for a community benefit;

· Works associated with the delivery of infrastructure or a community benefit;

· Monetary contributions to Council for the provision of land and works (usually not on the site of the development); and

· Payment towards temporary recurrent costs of public facilities.

A Planning Agreement may occur where there is already a contributions plan in place. It may involve provision of certain items listed in the contributions plan while providing monetary contributions to Council for other items. Normally this would be for items that are not located on the site of the development. Where a Planning Agreement provides items that are in a contributions plan that applies to the site, the Planning Agreement may exclude monetary contributions for items. A planning agreement may bring forward items in a Contributions Plan work schedule.

Contents of the Planning Agreements Policy

The Policy will cover the following matters:

· Principles governing the use of Planning Agreements;

· Reference to the use of Planning Agreement Templates for the circumstances referred to above;

· Information that must be submitted to support the offer of a Planning Agreement;

· Matters that Council will consider when negotiating a Planning Agreement;

· Steps in the negotiation process;

· Probity matters;

· Public notification and procedures;

· Implementation and conditions; and

· Preparation and contents of a Planning Agreement.

Benefits of draft policy

The benefits of the draft policy in terms of probity and transparency are that it:

· Specifies that it must be consistent with Council’s Community Strategic Plan;

· Outlines the format of a planning agreement;

· Clarifies the use of cash contributions from a planning agreement;

· Clarifies the relation of a planning agreement to existing contribution plans;

· Provides principles and an acceptability test that Council and a prospective developer must adhere to in negotiating a planning agreement;

· Outlines negotiation procedures;

· Specifies the submission requirements for the various situations of planning agreements;

· Identifies the relevant planning agreement template that should be used. This will assist in the time taken to develop a planning agreement;

· Identifies steps in the negotiation process; and

· Identifies probity requirements for Council and developers.

Specific considerations for major planning proposals

There are currently a large number of major planning proposals for significant individual developments in areas not previously identified for major development and which together would require significant precinct wide strategic planning studies to be undertaken. These studies would identify, amongst other matters, the public infrastructure required to support the new developments in a coordinated manner and would inform the development of a number of precinct wide development contributions schemes.

In lieu of the preparation of these studies and given the likely extensive cost of infrastructure required to support such developments, it is proposed that Council should identify a minimum expectation for monetary contributions for planning agreements in these areas.

This is particularly significant in areas around Liverpool City Centre, including the Georges River Moorebank and Warwick Farm precincts, where high density residential development is proposed. It is noted for example that in Queensland the adopted infrastructure charges regime applies whereby a standard contribution of $28,000 per 3 bedroom residential unit and $20,000 per 2 bedroom residential unit is charged on all developments. The concept of value capture or value sharing is also relevant here in that landowners should contribute to the cost of infrastructure to support their development in recognition of the substantial value uplift that they will receive from a rezoning.

Accordingly the following minimum rates are proposed for planning agreements to support major planning proposals where a precinct wide strategic planning study and contributions scheme have not been progressed:

1. Waterfront developments – minimum $15,000 per dwelling and $150 per sqm of floor area for commercial, retail and industrial developments; and

2. Other developments – minimum $10,000 per dwelling and $100 per sqm of floor area for commercial, retail and industrial developments.

CONSIDERATIONS

Economic and Financial	Further develop a commercial centre that accommodates a variety of employment opportunities. Deliver and maintain a range of transport related infrastructure such as footpaths, bus shelters and bikeways. Encourage and promote businesses to develop in the hospital, health and medical precinct (of the City Centre). Facilitate economic development Provide efficient parking for the City Centre. Deliver a high quality local road system including provision and maintenance of infrastructure and management of traffic issues. Further develop a commercial centre that accommodates a variety of employment opportunities (in the City Centre).
Environmental and Sustainability	Manage the environmental health of waterways. Protect, enhance and maintain areas of endangered ecological communities and high quality bushland as part of an attractive mix of land uses. Support the delivery of a range of transport options.
Social and Cultural	Deliver high quality services for children and their families.
Civic Leadership and Governance	Operate a well-developed governance system that demonstrates accountability, transparency and ethical conduct.

ATTACHMENTS

1. Draft Planning Agreements Policy

851

Ordinary Meeting 27 April 2016

Planning and Growth Report

DPG 06

Liverpool City Centre Contributions Plan Review

Strategic Direction	Vibrant Prosperous City Activate the city centre and develop vibrant places that attract people to Liverpool
Key Policy	City Centre Strategy
File Ref	083466.2016
Report By	Barry Millwood - Executive Planner
Approved By	Toni Averay - Director Planning & Growth

Executive Summary

A revised contributions plan for Liverpool City Centre has been prepared, which proposes to increase the contribution rate on development in the residential and industrial zones from 2% to 3%. It will be known as Liverpool Contributions Plan 2016 – Liverpool City Centre.

A revised schedule of works has been included, which reflects the expected increased level of development, particularly residential development and the need to pursue an enhanced level of amenity to accommodate the proposed higher density mixed-use development.

Should the proposed contributions plan be adopted by Council, it will be necessary to make a submission to the Minister for Planning and Environment to request an amendment to the Environmental Planning and Assessment Regulation 2000 to allow Council to levy at a rate of 3%. This is because regulation currently specifies a maximum rate of 2% for land in the residential and industrial zones in Liverpool City Centre.

RECOMMENDATION

That Council:

1. Exhibits the Liverpool Contributions Plan 2016 – Liverpool City Centre; and

2. Notes that a report will be brought back to Council following exhibition of the draft plan.

REPORT

Background

Council, at its meeting of 30 September 2015, resolved that it, amongst other matters:

2. Investigates options to provide discounted developer contributions in order to incentivise specific development in the Liverpool City Centre and other areas in accordance with future Council strategic objectives.

3. Seeks Ministerial approval pursuant to Clause 94E(1)(d) of the Environmental Planning and Assessment Act 1979 to increase the rate of the development contributions applying to the Liverpool City Centre under the Liverpool Development Contributions Plan 2007 to 3% for all zones.

The City Centre is currently subject to the Liverpool Contributions Plan 2007 (Liverpool City Centre). It levies development in the Business zones at 3% of the cost of the development and 2% of the cost of development in the Residential and Industrial zones.

In order to seek the above-mentioned approval, it is necessary to prepare a revised contributions plan to be adopted by Council and then submit it to the Department of Planning and Environment for consideration.

Accordingly a revised contributions plan (CP) for Liverpool City Centre has been prepared for public exhibition. It will increase the contributions levy on development in the residential and industrial zones in the City Centre from 2% to 3% of the cost of the development.

Works funded by contributions

The existing contributions plan has been in force since December 2007. Since this time contributions received have been spent on the following items:

· Car parking (Collimore Park);

· Norfolk Serviceway Car Park;

· Pioneer Park embellishment;

· Apex Park embellishment (design work);

· Bigge Park embellishment (funds committed this project);

· Central Library recoupment; and

· Whitlam Centre recoupment.

Vision for the City Centre

Council has recently outlined its vision for the City Centre, summarised as follows:

· The capital of the Great South West;

· A city defined by interesting architecture which is diverse and distinctive;

· A place where people want to work, live and enjoy;

· An 18 hour city characterised by activity and intensity both day and night;

· A true river city; and

· A well connected, workable, walkable city.

The workshop agreed this would be delivered by:

· LEP changes;

· Traffic and transport changes (traffic and parking studies);

· Quality architecture and urban design and

· Urban amenity (streetscape, parks etc.)

Council has subsequently endorsed a Planning Proposal which seeks to rezone the B3 Commercial Core lands in the Liverpool City Centre to B4 Mixed Use; and vary the development standards in the Liverpool LEP 2008 to suit the precincts and building typologies. It is also proposed to make other amendments as necessary to the Development Control Plans.

This vision and the changes proposed inform the range of infrastructure to be funded from contributions. The revised contributions plan seeks to achieve greater amenity to accommodate the increased density and, in doing so, seeks to achieve Councils vision for the City Centre.

Area covered by the contributions plan

The area covered by the revised contributions plan remains the same as the area covered by the existing contributions plan for Liverpool City Centre and is shown on Map 1 below.

Map 1 Land to which the contributions plan applies

It is noted that there are rezoning proposals for additional residential redevelopment in the vicinity of the current Liverpool City Centre. A decision on any of the proposals has not been made at this stage and accordingly these additional areas are not addressed by the revision of the contributions plan. It is considered that the contributions plan revision does not compromise any future land use decisions in the vicinity of Liverpool City Centre.

Impact of 3% levy on residential development

The Review of Council’s Section 94 Contributions Framework in 2015 undertook a review of the impact of a proposed 3% levy on the economic feasibility of residential development in Liverpool City Centre. It found that there would be minimal impact on the economic feasibility.

Other sources of income for City Centre

Other sources of income for funding infrastructure in the City Centre include:

· Community Development Fund (formerly known as the TIF) mainly levied on commercial development to fund infrastructure in the business area;

· Stormwater levy (helps fund drainage reconstruction in the City Centre); and

· S80A conditions on development (funds infrastructure directly related to development, such as footpath works or traffic management works);

· Planning Agreements (site specific)

Sources of income from S94A contributions

S94A contributions will largely come from residential and commercial development in the City Centre. The recent proposed changes to the Liverpool LEP 2008 to change from the B3 to B4 zone will increase the amount of residential development in the heart of the City Centre. This, in conjunction with the change from 2% to 3% in the residential zones will increase the income for infrastructure in the City Centre.

Incentives for development

Council has expressed an interest in providing incentives to encourage development to Liverpool City Centre. The developments, which Council should seek to encourage, include the following:

· 4+ star hotels; and

· Office premises (the portion of office floor space above 2 storeys).

It is considered that the provision of high quality hotels and office premises in Liverpool City Centre will attract other employment generating development. It is proposed that only a 2% levy would apply to these land uses in order to encourage their development in the City Centre.

Range of infrastructure to be funded by contributions

There is already a range of infrastructure identified in the existing contributions plan.

The range of infrastructure that is proposed to be included in the revised contributions plan is as follows:

Recreation Facilities

· Land acquisition along Georges River Foreshore to Haig Park (new item);

· Georges River foreshore western side (embellishment, Shared Path railway crossing, Shared Path boardwalk to Mill Park) (carried over from existing CP);

· Pioneer Park embellishment (remaining portion carried over from existing CP);

· Apex Reserve embellishment (new item);

· Georges River Shared Path Crossing & boardwalk to Haig Park (new item);

· Open space west of Hume Highway; and

· Whitlam Centre recoupment (carried over from existing CP).

Community Facilities

· Community facility upgrade (carried over from existing CP); and

· Library recoupment (carried over from existing CP).

Access

· Access and bus priority (carried over from existing CP);

· Road links (new item); and

· Car parking (carried over from existing CP).

Streetscape

· Residential Streetscape works (new item); and

· City Centre Core Footpath widening (new item).

Next steps

The proposed revised contributions plan would be exhibited for a period of 28 days and then reported back to Council.

At present, the maximum amount of the levy permitted under the Environmental Planning and Assessment Regulation 2000 for development in the residential and industrial zones in Liverpool City Centre is 2%. A submission will need to be made to the Minister for Planning and Environment to request an amendment to the Regulation to change the amount to 3%. Advice from the Department of Planning and Environment indicates that the submission should occur once the plan has been finalised by Council.

CONSIDERATIONS

Economic and Financial	Further develop a commercial centre that accommodates a variety of employment opportunities. Deliver and maintain a range of transport related infrastructure such as footpaths, bus shelters and bikeways. Provide efficient parking for the City Centre. Deliver a high quality local road system including provision and maintenance of infrastructure and management of traffic issues. Facilitate economic development. Further develop a commercial centre that accommodates a variety of employment opportunities (in the City Centre).
Environmental and Sustainability	Promote an integrated and user friendly public transport service. Support the delivery of a range of transport options.
Social and Cultural	Provide cultural centres and activities for the enjoyment of the arts. Support community organisations, groups and volunteers to deliver coordinated services to the community.
Civic Leadership and Governance	Undertake communication practices with the community and stakeholders across a range of media.

ATTACHMENTS

1. Liverpool CP City Centre

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Ordinary Meeting 27 April 2016

Planning and Growth Report

DPG 07

Revised Contributions Plan for Established Areas

Strategic Direction	Liveable Safe City Create clean and attractive public places for people to engage and connect
Key Policy	Urban Development Plans
File Ref	084561.2016
Report By	Barry Millwood - Executive Planner
Approved By	Toni Averay - Director Planning & Growth

Executive Summary

A revised contributions plan for Established Areas has been prepared, which proposes to change the contribution rates on development to a percentage levy. It is proposed to be at 2% of the cost of development and apply to all development, rather than just residential development, as is currently the case. A revised schedule of works has been included, which reflects the increased scope of development that the levy will apply to.

It is proposed to commission a study to assess the likely impact the proposed levy would have on the economic feasibility of development in the established areas.

Should the proposed contributions plan be adopted by Council, it will be necessary to make a submission to the Minister for Planning and Environment to request an amendment to the Environmental Planning and Assessment Regulation 2000 to allow Council to levy at a rate of 2%. This is because regulation currently specifies a maximum rate of 1% except for various higher rates selected city centres across NSW, including Liverpool City Centre.

RECOMMENDATION

That Council:

1. Exhibits the Liverpool Contributions Plan 2016 – Established Areas;

2. Notes that a study will be undertaken to assess the likely impact that the proposed levy would have on the economic feasibility of development in the established areas; and

3. Notes that a report will be brought back to Council following exhibition of the draft plan.

REPORT

Background

Council, at its meeting of 30 September 2015, resolved that it, amongst other matters:

4. Seeks Ministerial approval pursuant to Clause 94E(1)(d) of the Environmental Planning and Assessment Act 1979 to introduce a S94A scheme across the established areas of Liverpool, levying a developer contribution of 2% for works with a capital value in excess of $200,000, with 0.5% applying to development valued at between $100.000 and $200,000, except for identified high growth areas where existing contributions charges would remain.

The existing development contributions system in the Established Areas only levies additional dwellings for upgrading recreation and community facilities. It does not levy a dwelling that replaces an existing dwelling or levy commercial and industrial developments or other non-residential land uses in the Established Areas.

The proposed contribution scheme would levy all development in the Established Areas for a broader range of infrastructure.

The advantages of the proposed system are:

· It can be applied to a wider scope of infrastructure as nexus is less onerous under S94A;

· The S94A levy is a simple system;

· A condition for payment of contributions is not contestable in the Land and Environment Court on the basis of lack of nexus; and

· The administrative costs will be lower.

Accordingly a revised contributions plan for the Established Areas has been prepared for public exhibition.

Works funded by contributions

Council has been collecting contributions from new residential development in the Established Areas since May 2001. Since this time, contributions have been collected for the embellishment of various parks and the upgrade of two local community centres, to a District Level facility. In the past 10 years contributions collected have been spent on the following parks:

Alamein Park	Amalfi Park	Ashfordby Park
Bardia Park	Ben Prior Park	Ben Street Park
Beswick Park	Black Muscat Park	Childs Park
Clinches Pond	Collimore Park	Discovery Park
Dunbier Park	Durrant Oval	Frank Oliveri Park
Gabo Park	Gafney Memorial Park	Glen Regent Park
Haigh Park	Harris Creek Reserve	Hermitage Park
Hillier Oval	Ireland Park	Jardine Park
Jarrah Ave Park	Kelso Park	Lady Woodward Park
Lions Park	Lt Cantelo Reserve	Mc Grath Park
Meere Park	Mubo Park	Munro Park
Paciullo Park	Paine Park	Phillips Park
Pullbrook Park	Sadlier Park	Sanananda Park
Schell Park	South Park	St Andrews Park
Sullivan Park	Symes Park	Tall Gum Park
Thomas Moore Park	Vasta Park	Voyager Park
Wilkes Park	Woodward Park

Vision for the Established Areas

Council has recently outlined its vision for Liverpool. The vision is summarised as follows:

· Vibrant Prosperous City;

· Livable Safe City;

· Healthy Inclusive City;

· Proud Engaged City;

· Natural Sustainable City;

· Accessible Connected City; and

· Leading Proactive Council.

This vision informs the range of infrastructure to be funded from contributions.

Area covered by the contributions plan

The area covered by the proposed contributions plan revision for the Established Areas will remain unchanged. Note that the city centre is not included here but is in a separate plan.

Map 1 Land to which the contributions plan will apply

It is noted that there are rezoning proposals for additional residential development in the vicinity of Liverpool City Centre in areas to be covered by this plan, including the Georges River area. A decision on these proposals has not been made at this stage and accordingly, no allowance has been made for them in this revision of the contributions plan. Nevertheless, it is considered that the proposed contributions plan revision does not compromise any future land use decisions in the vicinity of Liverpool City Centre.

Impact of 2% levy on residential development

The Review of Council’s Section 94 Contributions Framework in 2015 included a review of the impact of a proposed 3% levy on the economic feasibility of residential development in Liverpool City Centre. It found that there would be minimal impact on economic feasibility.

It is intended to carry out a similar review to assess the impact of a 2% levy on development in the Established Areas. It is predicted that the review will confirm that a 2% levy on the cost of new residential development will only marginally impact on the feasibility of development and would still be significantly less than the rate which applies in the Release Areas. It is intended that this will help support the submission that will be made to the Department of Planning and Environment to permit a 2% levy.

The cost of the study will be funded from the contributions fund for the Established Areas.

Other sources of income for infrastructure in the Established Areas

Other sources of income for funding infrastructure in the Established Areas include:

· Stormwater levy (helps fund drainage reconstruction); and

· S80A conditions on development (funds infrastructure directly related to development, such as footpath works or traffic management works).

Sources of income from S94A contributions

At present contributions in the Established Areas only apply to additional residential development. Under the proposed contributions plan, S94A contributions will be levied on all development, except where the land is subject to an existing Planning Agreement or where a contribution has been paid for a subdivision on which it is now proposed to build a dwelling house. The new S94A contributions will largely come from residential, industrial and commercial redevelopments. The plan will not apply to the high growth release areas, which are covered by the existing contributions schemes.

Exemptions from a 2% levy

Under the existing statewide provisions for the percentage levy, there is an exemption under the Environmental Planning and Assessment Regulation 2000 for development under a value of $100,000 and a 0.5% levy for development between $100,000 & $200,000.

It is expected that if Council is successful in being permitted to levy a 2% contribution on the cost of development that the exemption and the 0.5% levy would remain. This would mean that secondary dwellings under the value of $100,000 would be exempt from paying the levy. The exemption would assist with housing affordability for low income earners.

Range of infrastructure to be funded by contributions

The existing contributions plan requires contributions from residential development for recreation and community facilities. The range of infrastructure that is proposed to be included in the revised contributions plan is as follows:

· Recreation Facilities;

· Community Facilities;

· Bus stops (new item);

· Footpaths (new item);

· Traffic Management (new item);

· Bikeways (new item); and

· Water quality works (new item).

Location Criteria for Expenditure

Unlike the Release Areas, redevelopment in the Established Areas is expected to be in the form of small developments over a wide area. The location and timing of redevelopment in the established areas is also much less predictable.

Accordingly, the criterion for expenditure of funds received is based on ensuring that expenditure will occur where development will take place. The scope of infrastructure to be provided is specified in the proposed contributions plan.

The intent of the boundaries is to ensure that contributions received from development are spent in a location to adequately serve the occupiers of that development. This principle is carried over from the existing set up for contributions in the Established Areas.

The catchments within which contributions will be kept for expenditure are shown in Map 2. Note that the city centre is not included here but is in a separate plan.

Map 2 Catchments for expenditure

Next steps

The proposed revised contributions plan would be exhibited for a period of 28 days and then reported back to Council.

At present, the maximum levy permitted to be imposed across NSW for development, under the Environmental Planning and Assessment Regulation 2000, is 1% of the cost of development (except selected city centres around NSW where it is higher).

To increase the percentage to 2%, a submission will need to be made to the Minister for Planning and Environment to request an amendment to the Regulation. Advice from the Department of Planning and Environment indicates that the submission should occur once the plan has been finalised by Council.

CONSIDERATIONS

Economic and Financial	Deliver and maintain a range of transport related infrastructure such as footpaths, bus shelters and bikeways. Deliver a high quality local road system including provision and maintenance of infrastructure and management of traffic issues.
Environmental and Sustainability	Protect, enhance and maintain areas of endangered ecological communities and high quality bushland as part of an attractive mix of land uses. Promote an integrated and user friendly public transport service. Support the delivery of a range of transport options.
Social and Cultural	Provide cultural centres and activities for the enjoyment of the arts. Support community organisations, groups and volunteers to deliver coordinated services to the community.
Civic Leadership and Governance	There are no civic leadership and governance considerations.

ATTACHMENTS

1. Liverpool Contributions Plan 2016 Established Area (2)View

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CFO 05	Draft Delivery Program and 2016-17 Operational Plan and Budget (Including Revenue Pricing Policy)
Attachment 1	Appendix 1 Budget Summary

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CFO 05	Draft Delivery Program and 2016-17 Operational Plan and Budget (Including Revenue Pricing Policy)
Attachment 2	Appendix 2 Budget By Directorate

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CFO 05	Draft Delivery Program and 2016-17 Operational Plan and Budget (Including Revenue Pricing Policy)
Attachment 3	Appendix 3 Assumptions Table

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CFO 05	Draft Delivery Program and 2016-17 Operational Plan and Budget (Including Revenue Pricing Policy)
Attachment 4	Appendix 4 Fees Greater Than 5%