PROPERTY STRATEGY - Eurobodalla ShireEurobodalla Shire Council Property Strategy 2014 4 The Property...

PROPERTY STRATEGY

Providing a ‘whole of Council’ framework to manage property assets

Eurobodalla Shire Council Property Strategy 2014 1

PROPERTY STRATEGY .............................................................................................................................. 3

1. Purpose ........................................................................................................................................... 3

2. Legislative and policy framework.................................................................................................... 4

3. Property Strategy ............................................................................................................................ 4

3.1 What is property? ................................................................................................................... 4

3.2 Why does Council hold and/or manage property? ................................................................. 5

3.2.1 Crown Reserves............................................................................................................... 5

3.2.2 Council-owned public roads............................................................................................ 5

3.2.3 Council owned land......................................................................................................... 6

3.2.3.1 Community Land ......................................................................................................... 6

3.2.3.2 Operational Land......................................................................................................... 6

3.2.1 Uses of Council property................................................................................................. 6

3.2.1.1 Direct community service............................................................................................ 6

3.2.1.2 Council operational services ....................................................................................... 6

3.2.1.3 Indirect community service ......................................................................................... 7

3.2.1.4 Commercial Leasing/Licensing .................................................................................... 7

3.2.1.5 Development............................................................................................................... 7

3.2.1.6 Surplus/vacant ............................................................................................................ 7

3.3 Property Vision........................................................................................................................ 7

3.4 Strategic property objectives .................................................................................................. 8

3.4.1 Objective 1: Provide property for the services required by residents............................. 8

3.4.2 Objective 2: Maximising the service potential of assets: ................................................ 8

3.4.3 Objective 3 - Maximising value for money ...................................................................... 8

3.4.4 Objective 4 - Contribute to economic growth ................................................................. 8

3.4.5 Objective 5 – Assign responsibility and accountability ................................................... 9

3.4.6 Objective 6 - Promote balance between development and sustainability...................... 9

3.4.7 Objective 7 – Use Council property to influence private development .......................... 9

3.4.8 Objective 8 – Using Council property to influence cultural vitality ................................. 9

3.5 Key outcomes.......................................................................................................................... 9

3.5.1 Tangible community benefits .......................................................................................... 9

3.5.2 Getting the best from valuable property resources ........................................................ 9

3.6 Property Strategies ............................................................................................................... 10

Strategy 1 ...................................................................................................................................... 10

Strategy 2 ...................................................................................................................................... 10


Strategy 3 ...................................................................................................................................... 10

Strategy 4 ...................................................................................................................................... 10

Strategy 5 ...................................................................................................................................... 10

Strategy 6 ...................................................................................................................................... 10

Strategy 7 ...................................................................................................................................... 10

Strategy 8 ...................................................................................................................................... 10

Strategy 9 ...................................................................................................................................... 10

Strategy 10 .................................................................................................................................... 10

Strategy 11 .................................................................................................................................... 10

Strategy 12 .................................................................................................................................... 10

3.7 Critical success factors .......................................................................................................... 10

3.8 Implementation framework................................................................................................. 11

3.8.1 Resourcing Strategy ...................................................................................................... 11

3.8.2 Land Acquisition and Disposal Policy ............................................................................ 11

3.8.3 Business Development Strategic Plan........................................................................... 11

3.8.4 Land Investment Policy ................................................................................................. 11

3.8.5 Recreation and Open Space Strategy ........................................................................... 11

3.8.6 Residential Land Strategy.............................................................................................. 11

3.8.7 Implementation Plan ..................................................................................................... 11


PROPERTY STRATEGY

1. Purpose

This Strategy, together with the Council’s Resourcing Strategy, the Business Development Strategic Plan and the Recreation and Open Space Strategy provides a ‘whole of Council’ framework to manage property assets and a framework and guiding principles that align Council’s property portfolio with its service delivery objectives.

The Property Strategy:

• Looks forward • Provides a framework for a coordinated strategic response to the use of

Council owned and/or controlled property • Helps assess how property can meet existing and emerging community

needs and contribute to achieving Council’s objectives.

This Strategy establishes a consistent approach to property management that is based on a clear understanding of the requirements of Council and the services it delivers. It combines these with best practice property management.

The Strategy sets out the guiding principles by focusing on service delivery and the Council properties used to deliver these services. It takes a holistic approach to property management that supports the delivery of best value services and addresses the wellbeing of Eurobodalla residents and those who work in the Eurobodalla Shire.

The Strategy aligns with and responds to Council’s mission, vision and values and provides an integrated framework for all elements of property ownership including:

• Buying property – identifying what property is needed so that the right purchase decisions are made at the right time, and the necessary resources (including lifecycle costs) can be planned in advance

• Identifying non-ownership alternatives to property solutions

• Owning property – knowing what property is owned and why it is owned by Council

• Managing property – knowing that the property is fulfilling its purpose

• Investing in property – capturing the benefits of growth for the community • Releasing property – making informed choices about when and why to

dispose of property for which Council has no further purpose.

The scale of Council’s property investment exposes it to a range of risks. The approach in this Strategy will enable Council to manage these risks and get the best value for money when delivering services to the community.


The Property Strategy informs elected Council members and officers, as well as external parties, about the use of Council property assets that enable the delivery of its services.

2. Legislative and policy framework

The framework governing property management practice in the Eurobodalla Shire is made up of:

• Acts of Parliament

• Regulations made under Acts of Parliament

• Council’s Policy Framework.

Council’s property activities will be managed within legislative parameters including:

Local Government Act 1993

Crown Land Act 1989

Land Acquisition (Just Terms Compensation) Act 1991 Roads Act 1993

Real Property Act 1900 Retail Leases Act 1994

The Property Strategy also links with Council’s Community Strategic Plan, Asset Management Plan, Long Term Financial Plan, Business Development Strategic Plan, Recreation and Open Space Strategy, Delivery Plan and Operational Plan.

3. Property Strategy

3.1 What is property?

Property is a type of asset that provides Council with value both in an accounting sense and in the way it contributes to service delivery.

For something to be categorised as a property asset by Council it must have a value in monetary terms so it can be recognised in financial statements.

In the public sector it is often more important to appreciate the non-monetary aspects of a property’s value. Property assets therefore must also have service potential. ‘Service potential’ describes how a property asset can be utilised to meet the objectives of Council’s service delivery and is a useful term to use when a property asset does not generate income. ‘Service potential’ also refers to the benefits that a property is expected to deliver in the future.

Property assets take a variety of forms. This Strategy deals with physical assets.


In the context of this Strategy, property describes any kind of interest that Council has in land that it holds or is granted. Property therefore includes all lands, buildings, rights of way, leases, licences and easements, in fact every possible Council interest in land.

3.2 Why does Council hold and/or manage property?

Council holds or manages property to support the delivery of the broad range of services it provides to the people who live, work in and visit the Eurobodalla Shire.

Property assets are used and deployed in many different ways to provide these services.

Property in the Eurobodalla shire comprises Crown Reserves, Council owned public roads and Council owned land.

3.2.1 Crown Reserves

Council is the Trust Manager for three (3) Crown Reserve Trusts which are responsible for the care, control and management of most of the Crown Reserves located within Eurobodalla Shire. Eurobodalla (North) Reserve Trust covers Crown reserves from the

northern boundary of the Shire to the Tomaga River.

Eurobodalla (Central) Reserve Trust covers Crown reserves from the Tomaga River to the Tuross River.

Eurobodalla (South) Reserve Trust covers Crown reserves from the Tuross

River to the southern boundary of the Shire.

The use and management of Reserve Trust property is governed by provisions of the Crown Lands Act 1989. All revenue that is received from Trust property must be accounted for in Council’s Crown Reserves Fund and can only be spent on the Reserve Trust property.

3.2.2 Council-owned public roads

Council is the Roads Authority for all Council public roads and their use and management is governed by the Roads Act 1993. The roads are held in freehold title but their closure is administered by the Crown Lands Division of the Department of Primary Industries.


3.2.3 Council owned land

In accordance with the provisions of the Local Government Act 1993, all Council owned land, other than public roads, is classified as either Community Land or Operational Land.

3.2.3.1 Community Land

This classification reflects the importance of the land to the community because of its use or special features. Generally, it is land intended for public access and use, or where other restrictions that apply to the land create some obligation to maintain it for public access (such as a trust deed or dedication under Section 94 of the Environmental Planning and Assessment Act 1979). The intent of these restrictions in the Act is to preserve the land’s qualities.

Community land:

cannot be sold, leased or licensed

cannot have any other estate granted over the land for more than 30 years must have a plan of management prepared for it.

3.2.3.2 Operational Land

This classification reflects the use of land for operational purposes such as administrative buildings, depots, treatment works etc. Operational land has no special restrictions other than those that may apply to any piece of land so it can be used for any other purpose including commercial or investment.

3.2.1 Uses of Council property

There are six (6) reasons Council holds and/or manages property:

3.2.1.1 Direct community service

First and foremost the Council uses and occupies property in order to provide direct services to the community, such as libraries, community centres, halls, sporting clubs, parks and open spaces, leisure facilities etc.

3.2.1.2 Council operational services

Council occupies property in order to house office and administrative functions, water and sewage infrastructure, works depots and the like, all of which support Council services .


3.2.1.3 Indirect community service

Council also makes properties available, often on preferential lease or licence terms, to other organisations so that they can provide services to the community that support Council’ s powers and duties. These include services such as sporting clubs, voluntary support groups and community organisations. By making properties available to others on preferential terms, the value of the concession given can often be used by Council to generate or lever S t a t e a n d Au s t r a l i a n G o v e r n m e n t funding. In certain cases th i s funding can exceed the property’s value.

3.2.1.4 Commercial Leasing/Licensing

The Council has a general power to hold land for the benefit of its area and as such can own and manage a range of commercial properties. T he rental income and capital from these properties can support Council’s various services and facilities.

3.2.1.5 Development

Council is as concerned with the future as it is with the past. For this reason it holds areas of land for future development and can use its ownership of the land to control or influence how it and the area around it is improved or developed.

3.2.1.6 Surplus/vacant

From time to time, Council will declare parcels of land as surplus to its requirements. If land is classified as community land it must be reclassified as operational land before Council can sell it.

3.3 Property Vision

The Eurobodalla Shire Council’s vision for its property is to have a well-managed property portfolio that:

Meets current and future service needs and enables the delivery of good services

Is in good condition with no maintenance backlog and meets all legislative

requirements

Enhances the physical environment of the Shire, helps conserve special places and provides leisure and cultural opportunities for the public

Is environmentally sustainable

Is regularly reviewed for its performance


Maximises the potential for Council to influence the cultural look and feel of neighbourhoods, either through strategic purchasing, development or other land use decisions

Provides best value for money and minimises costs

Is rationalised wherever possible and releases capital that may be reinvested in

the portfolio

Allocates investment in future property according to a corporate prioritisation framework.

3.4 Strategic property objectives

The key objectives of the Property Strategy are to enable Council to use its property in an effective, efficient and economical way that meets its service delivery objectives.

The Strategy also aims to provide a foundation for the wellbeing of those who live and work in the Shire in the following ways:

3.4.1 Objective 1: Provide property for the services required by residents

Focus on outcomes (see 3.5)

Ensure assets are appropriately used and maintained

Apply best practice asset management principles.

3.4.2 Objective 2: Maximising the service potential of assets

Improve the management of the existing asset base

Improve the flexibility of the asset base Use Economies of scale that ensure more cost effective service delivery.

3.4.3 Objective 3: Maximising value for money

Take into account the full costs of acquiring, holding, using and disposing of assets throughout their life cycles

Participate in partnerships with the private sector/other agencies.

3.4.4 Objective 4: Contribute to economic growth

Meet service delivery demands by providing the right assets in the right location in the right amounts

Encourage asset improvements that will enhance the wellbeing of Shire residents.


3.4.5 Objective 5: Assign responsibility and accountability

Clearly define ownership and control of assets Determine and communicate accountability and report responsibilities

throughout each step of the integrated approach to asset management.

3.4.6 Objective 6: Promote balance between development and sustainability

Minimise demand for new assets by using non-asset service delivery alternatives if appropriate

Make asset decisions that consider and protect the needs of future generations.

3.4.7 Objective 7: Use Council property to influence private development

New and renewed assets should be good examples of built form and environmentally sustainable architecture

Council should use its property asset base where possible to leverage desired land use and optimum built form by private development.

3.4.8 Objective 8: Using Council property to influence cultural vitality

Purchase strategically to deliver desired social, cultural or environmental outcomes

Use existing owned or controlled land to deliver specific social, cultural or environmental outcomes.

3.5 Key outcomes

Council aims to achieve the following key outcomes through the Property Strategy:

3.5.1 Tangible community benefits

Innovative services and assets that meet current and future community needs

Property being used as a means of getting services to users (rather than solely for ownership purposes)

A sustainable built environment that accommodates a growing population Places, spaces and support for the wellbeing of the community Well-used community and civic facilities

3.5.2 Getting the best from valuable property resources

Raise the profile of property management and introduce property into resource decisions at all levels of the organisation

Effective stewardship of Council’s property assets Best Practice in property management

Review holdings and challenge the need to retain property Financial strength and asset growth.


3.6 Property Strategies

In order to achieve the Strategic Property Objectives, Council’s Property Strategy will:

Strategy 1: Hold, plan and strategically manage all property assets corporately.

Strategy 2: Promote accountability for the use of Council’s property resources.

Strategy 3: Continually review the property portfolio (b o t h op e r a t i o n al a n d co m m u n i t y l a n d ) to determine its performance, utilization, need and provision.

Strategy 4: Measure the performance of operational property to identify underperforming assets and to inform and ensure objective decision making.

Strategy 5: Continue to resource and improve the accessibility and sustainability of Council properties.

Strategy 6: Explore innovative ways of providing services and use both property as well as non-property based solutions.

Strategy 7: Maintain adequate corporate property data to enable efficient asset management and planning.

Strategy 8: Align assets with service and community expectations.

Strategy 9: Invest in property that will deliver economic, social, cultural and/or environmental outcomes.

Strategy 10: Promote sustainable development.

Strategy 11: Declare any poor performing properties as surplus to requirements early and refer to Council for consideration of options.

Strategy 12: Ensure any properties deemed surplus to needs are made ready for disposal at the most appropriate time.

3.7 Critical success factors

There are three (3) factors which are critical to the success of this strategic approach to property:

1. Council’s property portfolio is regularly reviewed.

2. Property management is seen to support services and service units are

contributing to strategic property planning.


3. Councillors and staff are well informed when making property-related decisions.

3.8 Implementation framework

This strategy will be implemented in conjunction with other relevant Council policies and strategies including the following:

3.8.1 Resourcing Strategy

The Asset Management Policy and Long Term Financial Plan in the Resourcing Strategy will guide the acquisition and disposal of property.

3.8.2 Land Acquisition and Disposal Policy

This policy will guide the process for the acquisition and disposal of Council properties (currently being prepared).

3.8.3 Business Development Strategic Plan

This document will work with the Business Development Strategic Plan which is currently being prepared

3.8.4 Land Investment Policy

This policy will guide Council’s investment in land to develop revenue streams.

3.8.5 Recreation and Open Space Strategy

The Recreation and Open Space Strategy provides a guide for the strategic planning, development, management and use of recreation facilities and open space within Eurobodalla Shire. This strategy also identifies lands surplus to recreation/community needs.

3.8.6 Residential Land Strategy

Once completed the Residential Land Strategy will guide the development of englobo residential properties held by Council.

3.8.7 Implementation Plan

This plan sets out the specific actions, resources, budgets and timelines that are relevant to delivering this Property Strategy (to be developed.)


GLOSSARY

Community Land means land owned by Council, the use of which is restricted by terms and conditions set out in the Local Government Act 1993.

Council Public Road means a road for which Council is the Roads Authority.

Crown Reserve means Crown Land dedicated for public purposes, e.g. public recreation. Leasing means the granting of the exclusive use of land or building to a third party. Licensing means the granting of the use of land or building that does not provide for exclusive use. Operational Land means land owned by Council, the use of which is unrestricted by legislation.

Reserve Trust means a body charged with the care, control and management of any reserve (or any part of a reserve) of which it is appointed trustee. Roads Authority means a body that is declared under the Roads Act1993 to be a roads authority and, in relation to a particular public road, means the roads authority for that road.

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