Council meeting agenda - 4 June 2012 - Clarence City Council

CLARENCE CITY COUNCIL – GOVERNANCE- 4 JUNE 2012 107
However, the increase in revenue is entirely off-set by the amount
appropriated to the Infrastructure Renewal Reserve, representing interest
earnings on those funds, being increased. Through this mechanism the
Infrastructure Renewal Reserve retains its value in real terms, assumptions
made in long term financing modelling are met and the net rating requirement
has effectively been insulated from the effect of cyclical movements in interest
rates.
2.10. As noted above, the Fire Services Contribution which Council is obliged to
pay to the Tasmania Fire Service has increased by some 1.4% against
2011/2012. The contribution will be $3.94 million, an increase of $55,000.
2.11. Waste collection and recycling expenses are expected to increase markedly in
2012/2013. Collection expenses are estimated at $2.305 million, or an
increase of 12%. This is largely driven by the cost of disposal at the Copping
landfill site charged to Council by the Joint Authority operating that facility.
The Copping gate fee rate per tonne in 2011/2012 is $40 and advice is that this
will increase to $52 in 2012/2013. Kerbside recycling costs and greenwaste
collection costs, being the other major items in this category, are estimated to
increase by 3%. Waste costs overall will rise by 8%.
2.12. The Australian Government has enacted a range of legislation which
introduces a price on carbon for some 500 of the biggest polluters in Australia,
becoming effective on 1 July 2012. This legislation also provides for a range
of payments to individuals and in some cases, industry, to support them in
meeting additional costs arising from carbon pricing. Council is not expected
to incur a direct cost from this measure, however, will be exposed to a range
of increased costs as the carbon price works its way through the supply chain.
A major issue facing Council is that the precise effect of carbon pricing on its
cost structure cannot be predicted accurately. Its final effect will depend on
the extent to which primary “payers” pass on the cost, the extent to which
these businesses participate in Council’s supply chain and how downstream
producers and suppliers build the additional cost into their pricing.