The Council is consulting on a proposed charging framework as part of the development of a new Lease Policy. The policy aims to ensure the Council manages the leases of Council properties in a consistent, fair, and transparent way.
The key objectives for the provision of council facilities are to:
- support community wellbeing by providing accessible spaces for sport, recreation, and creative activities.
- ensure Council gets value from its buildings, land, and facilities.
- deliver a variety of services that reflect local needs and align with the Council’s strategic plans.
- guarantee fair and equal access to community facilities.
- keep leasing processes open and transparent.
- give staff the flexibility to respond to community needs and preferences.
- maximise the use of Council properties.
Who the charging framework applies to
The charging framework will apply to all community leases. To be eligible for a community lease, a group must meet all the following criteria:
- Not-for-profit status: The group must be a registered not-for-profit organisation, such as an incorporated society, charitable trust, or similar entity. Any surplus revenue generated through the group's activities must be reinvested into those activities and not distributed to members or private individuals.
- Community benefit: The group must demonstrate that its primary purpose delivers meaningful benefit to the local community. This includes, but is not limited to, groups providing opportunities for sport and active recreation, social and community services, arts and cultural experiences, or other activities that strengthen community connection, wellbeing, or resilience.
- Local reach: The group's activities must primarily serve residents of the district. Where a group also serves a wider regional membership, it must be able to clearly demonstrate the benefit its activities provide locally.
- Active and regular use: The group must be actively operating and using the premises on a regular and ongoing basis for the delivery of its community activities. The Council may consider the frequency of use, the number of people served, and the nature of the activities when assessing this criterion.
- Appropriate use of the premises: The leased space must be used for the group's stated community purpose. Any sub-letting or use of the premises for commercial activity unrelated to the group's core purpose requires prior written approval from the Council.
- Appropriate documentation is in place: The group must be properly constituted with current governance documentation, such as a constitution or trust deed. It must also be up to date with any relevant registration or filing obligations, for example with the Charities Register or Companies Office.
- Alignment with Council's strategic priorities: The group's activities must support at least one of Council's strategic and operational priorities, such as embracing social and cultural inclusivity, valuing our community and open spaces, and embracing growth and development.
Commercial and grazing leases will be set at market rates. Existing arrangements with schools are exempt from lease fees.
Proposed fee structure
The objective of the proposed fee structure is to ensure a consistent approach to how lease rates are set. For community group leases, the proposed fee will be calculated based on:
| Proposed Community Lease Fee Structure | |
|---|---|
Component | Rate |
Land Component | $0.10 per m2 |
Building Component | $6.50 per m2 |
Annual Component | $500 flat fee |
For example: An organisation leasing a 100m2 building on 250m2 parcel of land would pay $1175.00 per year ($650 for building + $25 for land + $500 annual component).
This formula is designed to bring clarity and consistency to the leasing process for community organisations while remaining fair and transparent for all parties.
Any sub-leasing arrangements would need to be agreed with and approved by the Council, and subject to cost controls or revenue sharing arrangements.
Rent concession for community groups
The Council recognises that for some community groups, the new fee structure may result in increased lease costs. To help manage this transition, the Council proposes a rent concession scheme, with concessions granted for a three-year period. After three years, the concession scheme will be reconsidered, with the potential opportunity to reapply for a concession.
The maximum concession would be no more than the difference between the group’s last annual fee and the new fee applicable under the proposed charging framework. The intent is to support groups that are unable to immediately meet the increased charges.
For example: If under the new charging framework, a lease would increase from $300 to $1175, the community group leasing the facility would be able to apply for concession of up to $875.
To access the concession, groups will need to apply and demonstrate eligibility for concession by providing:
- financial records (and audited accounts where appropriate) demonstrating financial status.
- membership numbers, membership fee charges, and how membership fees are allocated to expenses.
- a plan outlining how revenue will be increased over time to pay the assessed fee.
- evidence of the impact an increase in lease fee would have on the group.
The Council believes this approach strikes the right balance between ensuring the long-term sustainably of the charging framework and continuing to support community groups that rely on Council facilities, while supporting them to become self-sufficient.
Financial impacts of the change
Council currently receives $30,740.69 in revenue from the community leases it has. This is much less than the cost to Council of owning and maintaining these spaces. Costs to Council include maintenance, insurance, and loss of rates revenue.
Under the proposed charging framework, Council revenue from community leases would increase to $52,195.65 per annum. This is an increase of $21,445 - or around 69 percent.
The proposed rental concession pool would be $22,000. Any money not paid out in concessions would be used to offset the costs associated with community leases.
