The draft policy supports decision making in relation to occupancy arrangements on Council property, in accordance with obligations under the Local Government Act 2020.

The fundamental element in any draft policy with a Council Asset, as per the Asset Management Draft policy 2023, is “whole of asset lifecycle”. Further generations will understand the implications on the use of Council properties, and financial demand, because of the decisions being made presently.

Section 86 Committees (from the Local Government Act 1989) cease to exist under the Local Government Act 2020. Following the reforms, at the request of Council, all section 86 committees of management were requested to become incorporated associations. Once incorporated, Council then put in place temporary agreements, all of which have now expired. Committees of Management have shown a lot of patience in the years that followed the reforms, with many committees unsure where they stand, regarding their exact responsibilities when it comes to the management of these council properties.

Strathbogie Shire Council owns/manages building assets with a combined replacement value of $80.8 M and the cost to operate and maintain these assets, costs all Ratepayers in Strathbogie Shire Council hundreds of thousands of dollars each year.

The scope of the draft policy is to support Council in its decision making in accordance with obligations under the Local Government Act 2020 and provides clarity on Council’s approach to leasing and licencing to any party. The draft policy supports the sustainability of Council’s properties through appropriate and equitable contribution towards maintenance and oversight of the council properties in line with each category of lease or licence and the associated agreement.

This draft policy has been developed to achieve the following objectives for properties leased or licensed by Council to ensure:

that Council properties are appropriately maintained, developed, occupied, and having regard to the interests of the community and care of the asset;

that Council properties meet community needs consistent with the Council Plan;

that decision making in respect of eligibility, use, length of lease or licence, associated fees are transparent, and income tested. e.g. can the occupant generate income by means of hire agreements, liquor licence, memberships etc;

that leasing and licensing arrangements are fair, transparent, and equitable;

sound fiscal management and effective administration of Council properties to allow for an acceptable financial return; and

compliance with legislative requirements that risks are appropriately managed, and liability minimised.

If a current committee or community group is unwilling or unable to formalise their occupancy of a council property for whatever reason, Council may be required to take back possession of the property and any/all future request for use/hire will be made directly to Council.

In the event that the community has no use for the property, consideration will be given to the future use of the asset and may be made available to any other group, organisation or business to enter into an agreement by way of a public Expression of Interest to Lease. Failure to secure interest for the ongoing occupancy of a property may result in the asset being considered for sale by way of a public Expression of Interest to Purchase or Public Auction. Decisions made in this regard will be made by Council.

The community consultation and engagement will finish at 5pm on Wednesday 17 July 2024 upon which time, Council Officers will collate all submissions for review and discussion with stakeholders internally and if required, externally.

Council Officers will make amendments to the draft policy, develop a Transition Program and prepare a Council Report for the Council Meeting on 20^th August 2024.

Council Officers will commence preparation of Lease and License documents for each council owned/managed property and make contact with each occupant to present them with their draft Lease or License, following the adoption of the amended Policy

With the introduction of the draft policy, Council will present each occupant with formal agreements with clear roles, responsibilities and rental amounts payable, if relevant.

A determination of the rent or licence fee will be made by Council by taking into consideration the following;

-the category of occupier,

-ability to generate income,

-planned activities / services offered at the facility (e.g. sale of liquor, venue hire),

-the proposal submitted by the relevant organisation,

-the Administrative Rent amount as set out in the Budget.

-the Rate of Subsidy % (result yielded from the rental classification matrix) relevant to Category 2 occupiers), and

-the market rent less the Rate of Subsidy.

Please refer to the table shown in Item 10 – Category of Occupiers, for definitions of each category, examples and the indicative rental for each. Application of the Rental Classification Matrix is shown in Attachment 1 of the draft policy with sample and calculation provided for illustrative purposes.

The Draft policy provides clarity on Council’s approach to leasing and licencing to any party. It supports the sustainability of Council’s properties through appropriate and equitable contribution towards maintenance and costs.

Prior to the preparation of any Lease, it is proposed that all current / future occupants of Council property will have the opportunity to request the fee be waived.

It is important to note that following Community Engagement, Officers propose Council waive the Lease Preparation Fee for current Category 2 and Category 3 occupancies for the initial term as part of the transition program that will be presented to Council following Community Engagement. All subsequent agreements will attract the Lease Preparation Fee as per the draft policy.

The sale and consumption of alcohol does not form part of the Council Plan. Whilst the agreement will require 2% of gross bar sales to be set aside so to re-invest back into the property, the funds are not proposed to be collected by Council. These funds are to be used by the occupant to contribute to the improvement and maintenance of the property.

Fees and Rental Income generated from the Leasing and Licensing of Council property is proposed to form part of Councils Consolidated Revenue.

The maintenance schedules themselves do not form part of the draft policy. They will form part of the terms of a lease/license. The maintenance schedules may be subject to change, depending on the site specific requirements of a property.

The schedules are available by request during the community consultation process.

Whilst the maintenance and responsibility schedules for Whilst the maintenance and responsibility schedules for Recreation Reserves have been developed, Council is undertaking a separate body of work relating to the service level/frequency of Council performed activities at recreation reserves. At completion of that body of work, Council will incorporate the Recreation Reserves into this draft policy.

All Committees at Council Owned / Managed Recreation reserves are aware of the temporary exclusion from the Lease and Licensing Draft policy.

Yes, Council Officers will be available to meet with community groups / occupants by appointment in Euroa on Wednesday 3^rd July or Nagambie 10^th July 2024.

Please click through the following links to book a time to meet with Council Officers:

• Click to book in at Euroa
• Click to book in at Nagambie