Landlord double rates, photo scandal twist, and a 17 year embezzlement (#349)

New episode News

On the Local Government News Roundup for 14th June 2024:

  • Merri-bek Council agrees to explore higher rates for landlords to fund a reduction for other ratepayers
  • Powercor refuses a Ballarat Council request to meet over a controversial substation project
  • Two Capital city mayors champion major reforms to short stay accommodation rules
  • A Queensland deputy mayor refers herself to the state’s integrity agency
  • A major regional council investigates a potential data breach after personal information was exposed online
  • and a council employee’s 17 year embezzlement scheme

Plus more Council news from across Australia and beyond on the Local Government News Roundup, brought to you by the Victorian Local Governance Association,

with support from Davidson, the nationally recognised executive recruitment service and business advisory practice, presenting LG Innovate: Artificial Intelligence Summit for the local government C-Suite at Peregian Beach in September – early bird bookings open now.

Listen to this episode here, and find the link for your podcast player here.

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Transcript for episode 349:

Victorian Roundup:

Merri-bek Council in Melbourne’s inner north has agreed to a proposal put forward by Councillor James Conlan to explore doubling rates for landlords with two or more properties, while potentially reducing rates by 50% for owner-occupiers and local businesses.

Councillors supporting the proposal say it will address the housing crisis by encouraging residential property investors to sell, making more homes available to first-time buyers.

Critics of the proposal say that it oversimplifies the issue, and hold concerns that it could actually reduce rental supply if properties are bought by owner-occupiers.

Just prior to the motion passing, on a 6 to 5 vote, CEO Cathy Henderson said every effort would be made to bring a report on the proposal back to the council before the election period in September.

After the meeting, the Council issued a statement confirming the resolution, and that legal advice would be sought in the first instance to see if the proposal can legally be implemented.

Initial advice from Council staff has indicated that it is unlikely that doubling rates for property investors with two or more properties would fund a halving of rates for other rate payers.

Links: ABC News report; Yahoo Finance report; Merri-bek Council statement

Powercor has declined to meet with Ballarat council and residents regarding a future substation site in Ballarat East, because it says it would give residents false hope.

Powercor plans to proceed with the $30 million substation project despite opposition from residents and the council.

The council has advocated for a land swap and invited state ministers to meet at the site, but Powercor said the swap would be too expensive and declined the meeting.

Powercor has offered a $2 million Community Benefits Package, including Direct Neighbour Payments and funding for rooftop solar.

The City of Melbourne council has rejected a plan to give a South Yarra apartment block, known as “Motstone”, heritage protection, according to a report from The Age.

The decision came after residents expressed concerns that the protection would prevent them from selling the old building to developers.

Despite the building being classified as “significant” to South Yarra’s heritage, it has been categorised as “non-contributory”, as the council determined that the higher threshold for demolition should not apply.

The heritage review, with recommended status for 16 properties and two new precincts, will now go to Planning Minister Sonya Kilkenny for approval.

Regional Livestock Exchange (RLX) has decided to stop operating at the Camperdown saleyards and will terminate its lease on the Council-owned property.

The last sale day is expected to be on June 25.

The closure, according to Corangamite Shire Council CEO David Rae, is disappointing but not unexpected, and will not significantly impact the Council’s revenue.

The future use of the site will be investigated by the council, considering prudent investment and maximising community benefit.

While Mr Rae declined to speculate on the future of the site, the Warrnambool Standard reported that it is unlikely the council would take over the operation.

Moorabool Shire Council has decided to withdraw its membership from the Committee for Ballarat.

The withdrawal had been flagged in a Notice of Motion from Cr Tom Sullivan in May, and officers had proposed that membership be included in the council’s annual review of memberships.

The Moorabool News reported that Cr Sullivan believes the interests of Moorabool don’t align with the Committee for Ballarat.

Other reasons cited included opposition to the Committee’s support for the transmission line project.

The decision will save an annual membership fee of $4,600.

The Mayors of Victoria’s 10 largest regional cities have met in Shepparton this week, and committed to continued collaboration on driving investment, managing population growth, improving livability, and addressing climate change.

The cities, which include Ballarat, Bendigo, and Geelong, will work with Federal and State governments to address housing shortages, attract new industries, and ensure infrastructure keeps pace with population growth.

The cities collectively house over 800,000 people and contribute to 10% of Victoria’s economy.

Victorian Briefs:

The City of Ballarat is preparing for the introduction of a new Food Organics and Garden Organics (FOGO) kerbside collection service in 2025.

The service will provide kitchen caddies and liners to about 51,000 residential households for collecting food scraps.

The rollout is subject to the city securing a suitable FOGO processor and implementing a community education campaign.

Hume City Council will inquire with VicRoads about the maintenance of the historic Hume and Hovell monument in Bulla, which is currently in a dilapidated state.

The monument, erected in 1924, commemorates the 1824 expedition of Hamilton Hume and William Hovell.

The Star Weekly reported that the council is considering involving volunteers who maintain nearby gardens in the monument’s upkeep, with the hope of state assistance.

Moorabool Shire Council has received a petition opposing the renaming of the Elaine Recreation Reserve to the Ron Read Recreation Reserve, a change which was proposed by a previous petition.

The new petition, supported by the Elaine Cricket Club and local residents, argues that naming the reserve after one person is not fair to the many who have volunteered there.

The council voted to receive the petition and requested a report on the matter.

The next in the series of Global Executive Panels from the VLGA and LGIU is coming up on Thursday 27th June, on the topic of resetting relationships between levels of government.

Join a panel of leaders from Australia and UK for a Q&A discussion on maximising engagement and ensuring councils can be heard on the big issues affecting their communities.

The online panel starts at 5.30pm AEST – registrations and details on the events page of the VLGA website.

National Roundup:

NSW:

City of Sydney Lord Mayor, Clover Moore, is advocating for major reforms in the short-term rental sector, including a 90-day annual cap and a 10% levy on all bookings, with the revenue to be used for social and affordable housing.

The Guardian reported that the city’s research has revealed that thousands of properties on platforms like Airbnb have been operating without valid registrations.

The research also found that the current 180-day cap for listing was not deterring long-term rentals from switching to Airbnb and Stayz listings, and that enforcement of policies was insufficient.

The fallout continues after a state government decision to reclaim $36 million in funding granted to Hornsby Shire Council by the former NSW Government.

At a general meeting of Hornsby Shire this week, Mayor Philip Ruddock AO has slammed the government for its “inexplicable decision” to rescind the funding for the development of a much-needed recreational facility at Westleigh Park.

He’s called on the community to voice their disappointment, and remind the NSW Premier and relevant ministers of the many local teams, athletes, clubs and generations of weekend sports players who will see their community and aspirations suffer a loss as a result of the broken promise.

Meanwhile Inner West Council has welcomed the state government’s decision, and called for the reclaimed funds to be reallocated to councils that were disadvantaged by the scheme.

Mayor Darcy Byrne said merged councils like Inner West and Canterbury-Bankstown were unfairly prevented from applying for grants, and that the communities who were “ripped off” should receive some of the benefit.

Griffith City Council has rejected a proposed 3.5% increase in salaries for the forthcoming year, and will leave their remuneration unchanged.

The Area News reported that a motion to lift councillor salaries by the allowed amount was rejected at Tuesday’s meeting, with some councillors citing the council’s dire financial position as the reason.

Willoughby City Council, in partnership with EchoRealty, is offering 13 affordable homes to key workers with low to moderate incomes, with an additional 12 units available from August 2024.

The homes, part of the Council’s Affordable Housing Strategy, are located on the site of the former Channel 9 building.

In response to increasing housing affordability challenges, Shoalhaven City Council is preparing an updated Affordable Housing Strategy.

The strategy will outline how the Council will improve the supply of affordable housing and explore ways to make homes more affordable.

The Council has been implementing actions from its 2017 Affordable Housing Strategy, including adjusting planning controls and increasing the supply of social and affordable housing.

The updated strategy will include measurable actions and proposed housing affordability targets.

Parramatta’s bike paths are set to undergo a significant expansion with the endorsement of the Parramatta Bike Plan 2024.

The plan aims to deliver nearly 20 kilometres of new bike paths by 2027, focusing on safety, accessibility, and improved facilities.

The goal is to increase bike transportation to at least 5% of all work trips and 10% of those ending in Parramatta CBD by 2043.

Upper Lachlan Shire Council is celebrating after receiving the Community Development award at the Local Government Excellence Awards.

The award was for their initiative of inviting drag storyteller Betty Confetti for a Rainbow Story Time, despite facing threats and backlash.

The event was a success, recording the highest attendance of all specialised story time events.

The council continues to celebrate Pride Month with events throughout the shire and at council libraries.

QLD:

A photo scandal at Toowoomba Regional Council took a surprising turn this week, when deputy mayor, Rebecca Vonhoff, announced she had referred herself to the Office of the Independent Assessor.

The move followed criticism for her involvement in a scandal where a compromising photo of a colleague was circulated on social media.

Cr Vonhoff admitted to taking the photo of colleague Kerry Shine asleep during a meeting, but denies sharing it outside of council chambers.

In what the Toowoomba Chronicle called an unusual move, Mayor Geoff McDonald has issued a statement signed by all councillors, saying that no further comment would be made on the matter.

It’s understood Cr Vonhoff phoned Cr Shine last week to apologise for her part in the scandal.

She said on social media that the OIA process would unfold according to legislation, and she would accept the outcomes including any judgement.

City of Brisbane ratepayers will face an above-inflation rate rise of 3.8% next financial year under Lord Mayor Adrian Schrinner’s first budget since re-election.

The $4 billion budget also includes plans to regulate short-stay accommodation with a permit scheme and an infrastructure spend of almost $1 billion.

The proposed permit changes for short-stay accommodations require state government approval and would require owners to nominate a property manager and prove they have planning permission.

The Courier Mail reported an estimated 424 properties operating in low-density suburbs were “unlikely to receive a development or local law permit and will have to return to the long-term market or face fines’’ under the new scheme.

Moreton Bay Regional Council has launched an investigation into a potential data breach, after accidentally publishing private user information on its website.

ABC News has reported that the information included names, addresses, contact details, and details about council investigations.

The breach was reported by users who discovered their personal information and that of other people they know on the council’s customer request portal.

The council’s third-party provider is investigating the breach, and some customer functionality on the website is currently unavailable.

The number of people affected and the time frame for fixing the issue are unknown.

Townsville City Council is intensifying efforts to combat the city’s largest Yellow Crazy Ant infestation, thanks to $12.8 million in funding from the Federal Government.

The council has created a dedicated team to tackle the biosecurity issue, with aerial treatments planned over several days in various suburbs.

The council will also use helicopters, foot officers, and drones to spread about 20,000 kg of a specialised ant bait.

SA:

Adelaide City Council has endorsed support for the Cities Appeal, a campaign by the International Campaign to Abolish Nuclear Weapons, which encourages Australia to sign the 2021 Treaty on the Prohibition of Nuclear Weapons.

The treaty aims to ban the use, production, and stockpiling of nuclear weapons.

The Cities Appeal has been endorsed so far by 45 Australian councils.

The treaty has 93 international signatories, but Australia is not among them, according to a report from InDaily.

The City of Charles Sturt has responded to privacy concerns about the doors of some public toilets in the city.

The concerns related to an old design, intended to reduce unsavoury behaviour through passive surveillance.

The council says it is undertaking an immediate audit, and will address privacy and functionality issues as required.

Temporary measures have been put in place, including the installation of boarding and screens.

WA:

Perth metro local governments are struggling to balance their budgets against the cost-of-living crisis, with proposed rate increases ranging from 3 to 8 per cent, according to a report from WA Today.

Factors such as waste disposal, staff pay rises, and other operational costs have contributed to these increases.

Some councils, like Joondalup and Perth, have lower rate rises due to separating bin collection fees from regular rates.

An average rate rise of 4.4 per cent has been proposed across 22 of 31 metro local governments.

Mandurah City Council has presented a proposal to offer rebates to residents for the purchase of security equipment.

It has developed a draft strategy that includes the rebate proposal, as well as responses to opportunistic crime in hotspot locations, and increasing the number of private security cameras registered with the City.

The proposal also allows vulnerable residents to register with WA Police’s Safe and Found database, according to a report from PerthNow.

The scheme is estimated to cost $50,000 per year.

National Briefs:

SA’s District Council of Mount Remarkable has appointed Martin Borgas as Acting CEO, after the departure of Sam Johnson for the CEO position at the City of Launceston in Tasmania.

Mr Borgas is the former CEO of Karoonda East Murray and has worked previously with the Local Government Association of South Australia.

Bruce Scott, OAM, who has been Interim CEO of Queensland’s Murweh Shire Council has been offered an extension to his tenure in the role, to enable a thorough recruitment process for a permanent appointment.

Mr Scott, who is a former mayor of Barcoo Shire, will stay in the role for a further 12 months from the 1st July.

Augusta-Margaret River’s Chief Bushfire Control Officer (BFCO), David Holland, has been recognised in the 2024 King’s Birthday Honours List for his outstanding commitment to protecting the community.

David has been awarded an Australian Fire Service Medal (AFSM), the highest honour for a member of an Australian fire service.

LGA SA has launched a regional housing toolkit to help regional councils unlock new housing opportunities and ease pressure on housing availability and affordability.

The LGA says the new toolkit provides guidance on building an evidence-based business case for seeking investors and funding for housing.

And the District Council of Coober Pedy is seeking an experienced leader to be its next Chief Executive Officer, reporting to a team of three Administrators.

Applications are invited through McArthur by 1st July.

Join us in October for a unique global online event featuring a group of visionary civic leaders from across the globe, sharing strategies on tackling toxicity, bridging divides and renewing civic culture.

I’m delighted to be co-hosting this event with Diane Kalen-Sukra, author, speaker and former senior local government executive,

It takes place on the morning of Friday October 11 in Australia, which is the afternoon or evening of the 10th October across North America and the UK.

Act now to reserve your free space at Tackling Toxicity, Cultivating Civility – supported by the Victorian Local Governance Association.

Head to kalenacademy.com/summit to register and find out more.

Global Roundup:

UK:

Government commissioners appointed to Woking Borough Council, which declared bankruptcy in June 2023, are set to remain in place until at least 2028.

Commissioners Tony Redmond, Carol Culley, and Mervyn Greer could receive up to a combined £2,524,000 during their tenure, according to a BBC News report.

The council is responsible for meeting these costs.

A former employee of Aberdeen City Council has admitted to embezzling over £1m over a period of 17 years.

Michael Paterson exploited his position as a council tax and recovery team leader to issue council tax refunds and alter payee account details to transfer money to himself.

BBC News reported that the scam was discovered when a colleague noticed a large refund made under Paterson’s username.

Paterson, who started stealing to pay off debts and spent the money on personal expenses, was remanded in custody and faces a possible custodial sentence.

The council has since reviewed and strengthened its financial controls and processes.

NZ:

Invercargill mayor Nobby Clark is facing another code of conduct complaint, confirmed by the council, lodged by an external party.

This follows a previous complaint filed by city councillors Ria Bond and Ian Pottinger, after Cr Clark’s controversial use of a racial slur during a satirical news show.

The mayor’s conduct during the interview has been described as reprehensible.

Both complaints are currently under investigation.

Christchurch City Council has begun its search for a new chief executive following the resignation of its former CEO, Dawn Baxendale, in November.

The Press reports that recruitment agency Sheffield has been appointed to assist in filling the role.

Interim CEO Mary Richardson will continue in the position until the recruitment process is complete.

USA:

The Chicago City Council has approved a $50 million settlement for four men, known as the “Marquette Park Four,” who were wrongfully convicted of a 1995 double murder.

The men spent 20 years in prison before their convictions were vacated.

CBS News reported that the settlement resolves four separate federal civil lawsuits brought by the men against the city.

The city will pay $21 million of the settlement, with the city’s insurance company covering the remaining $29 million.

CANADA:

Hamilton Councillor John-Paul Danko violated the city’s code of conduct by publicly criticising two YWCA Women of Distinction award winners on social media, according to the city’s integrity commissioner.

Despite Cr Danko’s subsequent removal of the post and apology, the commissioner found his comments fell below acceptable public discourse.

However, CBC News reported that no penalty will be imposed as Cr Danko has already faced negative public reactions and there was no indication of malicious intent.

JAPAN:

Tokyo City Hall is developing a dating app to encourage marriage and childbirth in response to Japan’s declining marriage and birth rates.

The app, expected to launch later this year, may require identity confirmation and proof of income.

The government is also offering cash incentives for families with children and supporting childcare facilities to address the issue.