Property Leasing and Licencing Policy
Council policies are regularly reviewed as part of our governance processes. The Property Leasing and Licencing Policy was reviewed recently and is available for community feedback.
This policy provides the framework for use of Council property through leases and licences, aiming to:
- Maximise the use of Council's leased assets.
- Provide an equitable and transparent process for dealing with subsidised leases or licences.
We understand the importance reserves and sporting facilities have for our community's health and wellbeing. That’s why we are working to make sure they are managed sustainably.
Council allocates more than $166,000 in its budget to maintain the Mansfield Recreation Reserve, Lords Reserve and Bonnie Doon Recreation Reserve. This pays for toilet cleaning, gas, water and electricity bills, maintaining the surface including mowing, brushcutting and oversowing and many other things required to keep the facilities running well.
The user group contributions proposed in this policy would cover just 7% of the total cost of running the facilities, leaving $150,000 to be funded by ratepayers.
The updated policy includes these changes:
- Including ‘Rent Formula' providing clarity around how the rent amount is calculated.
- Including an annual Consumer Price Index (CPI) increase.
- Rewording some sections for better clarity.
- Adding a reference to Council’s Community Engagement Policy and Fair Access Policy.
How you can be involved
You can view the DRAFT Property Leasing and Licensing Policy (found on the right hand side of this page) and leave your feedback below. Alternatively, you can email your feedback to council@mansfield.vic.gov.au or deliver a written submission via post or in person.
A hard copy is also available to view at the Council Municipal Office at 33 Highett Street, Mansfield.
Consultation is open until 5pm Friday 3 May 2024.
How we will use your feedback
Your feedback will be used to further develop of the Policy before its adoption at the Ordinary Meeting of Council on 21 May 2024.
Leave a comment
2 May 2024
Attn: Maya Balvonova, Manager Planning & Environment, Mansfield Shire Council
Dear Ms Balvonova,
Thank you for the opportunity to provide feedback as part of Council’s review of the Property Leasing and Licencing Policy. We assume this opportunity has been made available following Mansfield Tennis Association’s (MTA) recent appointment as a Community Asset Committee (CAC) of Council.
As such, we have reviewed the draft policy and in relation to the summary of changes provided, find the document easily understood and well considered with regard to application to relevant community/user groups.
That said, there would appear to be little relevance specifically to MTA in the context of our CAC Agreement. It is noted that this Policy is not referenced in said executed Agreement. Also, the CAC Agreement, we understand, is based on a Committee of Management arrangement. The definition in the draft could possibly be expanded to include this Council land use scenario.
The Policy very much relates to the use of Council’s reserves where multiple users apply and/or the use of built assets under Council ownership. In the case of MTA as a Community Asset Committee, the Agreement covers the occupation and management of Council land for a sole purpose and where all improvements and facilities are owned by and the property of the CAC.
We thank you again for the opportunity to provide feedback as part of this policy review.
Regards,
Brendan Grant, President, Mansfield Tennis Association
Robert Williams, Committee Member, Mansfield Tennis Association
Council's Property Leasing & Licencing Policy outlines the various categories of Community Groups, but does not include a definition of a “Community Group”. The definition of a Community Group needs further clarification.
We are a not-for-profit community group who works for the public benefit, is registered as a charity with ACNC, has a defined structure and is self-governed by volunteers, and recently were not considered to be categorised as Community Group by Council.
Thank you for providing this policy.
Unfortunately the policy does not provide Club's with any form of certainty of it's rent payments, as is not clear where the percentage rent is a % of the Market Value, and that it is also linked to an unclear and ambiguous 'Current Market Return".
At what intervals is the Market value and Market Return reviewed and increased? Most Club's would agree to, and expect to pay a CPI increase for license fees, however with this now being linked to the Market Value of the underlying asset, and also a Market Return, the increase in any one year could be far greater than a CPI increase. eg. A Market value of an asset at $1,000,000 x (unknown Market Return as it is not mentioned anywhere in the Policy) lest assume it's currently 3% x 14% (Tier 2) = $1,000,000 x 0.03 x 0.14 = $4,200 rent.
Now let's assume the value of this asset has increased at the rate of 5% p.a and the Market Return increases to 5% (which could easily occur as it is not written into this Policy), and CPI is 3% p.a.
In two years time, the rent equation is now $1,102,500 x 0.05 x 0.14 = $7,717.50, whereas a 3% p.a CPI increase would only equate to $4,455.78. The Club needs to now fund an additional $3,261.72 or 77% of the annual fee from just two years prior. How would Council expect Club's to fund this and stay afloat?
This Policy is very poorly written and does not consider or appreciate the much broader financial impact that it will have on NFP community Clubs in Mansfield. Please bin this Policy and re-write a fairer policy, with the Community in mind.
We have really appreciated the support mansfield council has given us at Robinson Jui Jitsu , your support has allowed us to engage a variety of the community members currently we have 25 kids training and 28 teens and adults , due to offer us more than reasonable rent has allowed us to keep prices to a minimum especially the family membership including nephews or cousins being included in some family as well as offering very cheap uniforms as well as ensuring that all kids get a fitted uniform each year with our one off uniform payment .
