Notice of Meeting

 

 

 

 

 

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Finance Advisory Committee Meeting

 

 

A Finance Advisory Committee Meeting of Byron Shire Council will be held as follows:

 

Venue

Conference Room, Station Street, Mullumbimby

Date

Thursday, 14 May 2015

Time

2.00pm

 

 

 

gmsigKEN

Ken Gainger

General Manager                                                                                                                   I2015/396

                                                                                                                                    Distributed 11/05/15

 

 


CONFLICT OF INTERESTS

What is a “Conflict of Interests” - A conflict of interests can be of two types:

Pecuniary - an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person or another person with whom the person is associated.

Non-pecuniary – a private or personal interest that a Council official has that does not amount to a pecuniary interest as defined in the Local Government Act (eg. A friendship, membership of an association, society or trade union or involvement or interest in an activity and may include an interest of a financial nature).

Remoteness – a person does not have a pecuniary interest in a matter if the interest is so remote or insignificant that it could not reasonably be regarded as likely to influence any decision the person might make in relation to a matter or if the interest is of a kind specified in Section 448 of the Local Government Act.

Who has a Pecuniary Interest? - a person has a pecuniary interest in a matter if the pecuniary interest is the interest of the person, or another person with whom the person is associated (see below).

Relatives, Partners - a person is taken to have a pecuniary interest in a matter if:

§  The person’s spouse or de facto partner or a relative of the person has a pecuniary interest in the matter, or

§  The person, or a nominee, partners or employer of the person, is a member of a company or other body that has a pecuniary interest in the matter.

N.B. “Relative”, in relation to a person means any of the following:

(a)   the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descends or adopted child of the person or of the person’s spouse;

(b)   the spouse or de facto partners of the person or of a person referred to in paragraph (a)

No Interest in the Matter - however, a person is not taken to have a pecuniary interest in a matter:

§  If the person is unaware of the relevant pecuniary interest of the spouse, de facto partner, relative or company or other body, or

§  Just because the person is a member of, or is employed by, the Council.

§  Just because the person is a member of, or a delegate of the Council to, a company or other body that has a pecuniary interest in the matter provided that the person has no beneficial interest in any shares of the company or body.

Disclosure and participation in meetings

§  A Councillor or a member of a Council Committee who has a pecuniary interest in any matter with which the Council is concerned and who is present at a meeting of the Council or Committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable.

§  The Councillor or member must not be present at, or in sight of, the meeting of the Council or Committee:

(a)   at any time during which the matter is being considered or discussed by the Council or Committee, or

(b)   at any time during which the Council or Committee is voting on any question in relation to  the matter.

No Knowledge - a person does not breach this Clause if the person did not know and could not reasonably be expected to have known that the matter under consideration at the meeting was a matter in which he or she had a pecuniary interest.

Participation in Meetings Despite Pecuniary Interest (S 452 Act)

A Councillor is not prevented from taking part in the consideration or discussion of, or from voting on, any of the matters/questions detailed in Section 452 of the Local Government Act.

Non-pecuniary Interests - Must be disclosed in meetings.

There are a broad range of options available for managing conflicts & the option chosen will depend on an assessment of the circumstances of the matter, the nature of the interest and the significance of the issue being dealt with.  Non-pecuniary conflicts of interests must be dealt with in at least one of the following ways:

§  It may be appropriate that no action be taken where the potential for conflict is minimal.  However, Councillors should consider providing an explanation of why they consider a conflict does not exist.

§  Limit involvement if practical (eg. Participate in discussion but not in decision making or vice-versa).  Care needs to be taken when exercising this option.

§  Remove the source of the conflict (eg. Relinquishing or divesting the personal interest that creates the conflict)

§  Have no involvement by absenting yourself from and not taking part in any debate or voting on the issue as if the provisions in S451 of the Local Government Act apply (particularly if you have a significant non-pecuniary interest)

RECORDING OF VOTING ON PLANNING MATTERS

Clause 375A of the Local Government Act 1993 – Recording of voting on planning matters

(1)   In this section, planning decision means a decision made in the exercise of a function of a council under the Environmental Planning and Assessment Act 1979:

(a)   including a decision relating to a development application, an environmental planning instrument, a development control plan or a development contribution plan under that Act, but

(b)   not including the making of an order under Division 2A of Part 6 of that Act.

(2)   The general manager is required to keep a register containing, for each planning decision made at a meeting of the council or a council committee, the names of the councillors who supported the decision and the names of any councillors who opposed (or are taken to have opposed) the decision.

(3)   For the purpose of maintaining the register, a division is required to be called whenever a motion for a planning decision is put at a meeting of the council or a council committee.

(4)   Each decision recorded in the register is to be described in the register or identified in a manner that enables the description to be obtained from another publicly available document, and is to include the information required by the regulations.

(5)   This section extends to a meeting that is closed to the public.

 


BYRON SHIRE COUNCIL

Finance Advisory Committee Meeting

 

 

BUSINESS OF MEETING

 

1.    Apologies

2.    Declarations of Interest – Pecuniary and Non-Pecuniary

3.    Adoption of Minutes from Previous Meetings

3.1       Finance Advisory Committee Meeting held on 19 February 2015

4.    Business Arising From Previous Minutes

5.    Staff Reports

Corporate and Community Services

5.1       2014/15 Financial Sustainability Project Plan - Update on the Action Implementation Plan as at 31 March 2015....................................................................................................................... 4

5.2       Budget Review - 1 January 2015 to 31 March 2015...................................................... 48   

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.1

 

 

Staff Reports - Corporate and Community Services

 

Report No. 5.1             2014/15 Financial Sustainability Project Plan - Update on the Action Implementation Plan as at 31 March 2015

Directorate:                 Corporate and Community Services

Report Author:           Mark Arnold, Director Corporate and Community Services

File No:                        I2015/394

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

Council at its Ordinary meeting held on 7 August 2014 adopted the Financial Sustainability Project Plan (FSPP) 2014/2015 via Resolution 14-326

 

The FSPP adopted by Council is for the 2014/15 Financial Year and details the strategic approach adopted by Council for managing the Financial Sustainability of the Council as an organisation.

 

The Council via Resolution 13-148 resolved to develop the FSPP as a means of communicating with the community on proposed reforms.

 

Council in Resolution 13-148 also determined that progress reports on the implementation of the actions within the FSPP be submitted to the Council's Finance Advisory Committee.

 

This report has been prepared to provide the Finance Advisory Committee with an update report on the implementation of the actions in the 2014/15 FSPP Plan, for the period to 31 March 2015.

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

 

That the update report to 31 March 2015 on the 2014/2015 Financial Sustainability Project Plan Action Implementation Plan be received and noted.

 

 

Attachments:

 

1        2014/2015 Financial Sustainability Project Plan Action Implementation Plan as at 31 March 2015, E2015/12890 , page 7  

 

 

Sustainable icon TICK,Sustainable icon TICK

 


Report

 

Council at its Ordinary meeting held on 7 August 2014 adopted the Financial Sustainability Project Plan (“FSPP”) 2014/2015 via Resolution 14-326, which reads as follows:.

 

“Resolved that Council adopt the Financial Sustainability Project Plan 2014/2015 (#E2014/38787)”:

 

The FSPP adopted by Council is for the 2014/15 Financial Year and details the strategic approach adopted by Council for managing the Financial Sustainability of the Council as an organisation.

 

The Council via Resolution 13-148 resolved to develop the FSPP as a means of communicating with the community on proposed reforms.

 

Council in Resolution 13-148 also determined that progress reports on the implementation of the actions within the FSPP be submitted to the Council's Finance Committee.

 

This report has been prepared to provide the Finance Advisory Committee with an update report on the implementation of the actions in the 2014/15 FSPP, for the period to 31 March 2015.

 

A summary of the actions detailed in the FSPP has been prepared and attached to this Report at Attachment 1.  A comment has been included in the summary against each of the identified actions for the main areas or elements being:

 

·     Expenditure Review

·     Revenue Review

·     Land Review and Property Development

·     Strategic Procurement

·     Policy and Decision Making

·     Potential Commercial Opportunities

·     Volunteerism

·     Collaborations and Partnerships

·     Asset Management

·     Long Term Financial Planning

·     Performance Indicators

 

Financial Implications

 

The Finance Advisory Committee by referencing Attachment 1 will see progress against various action items associated with the FSPP.  In terms of actual financial outcomes, at this point for the 2014/2015 financial year, the following savings or new revenue have been identified since the last update report to the Finance Advisory Committee:

 

1.     Expenditure savings of $15,000 for the Byron Swimming Pool and $3,900 for the Mullumbimby Pool relating to water use following resolution of water leaks in 2014 has resulted in less budget being required then was provided in 2014/2015.  These funds are being transferred to reserve for the Pools to assist with any possible unforseen costs when the pools are to reopen for the next swimming season.

 

2.     Additional revenue for legal costs recovered of $14,100 has been realised through activities of the Legal Services team.  This is on top of the $9,300 previously recognised.

 

3.     Further additional revenue of $5,700 being realised through new revenue via resource sharing of Council’s Licence Plate Recognition Equipment with Lismore City Council.  This is consistent with the Partnerships and Collaborations Strategy Element of the Financial Sustainability Project Plan.

 

4.     Provision of additional $34,800 for interest and break costs along with an additional $302,100 to pay out the one remaining loan in the Water Fund.  This loan was paid out on 25 March 2015 given the healthy state of Water Fund reserves.  This action will save over the remaining life of the loan originally due to mature in 2021 $48,000 in interest after consideration of the break cost of $41,357 which can be used by the Water Fund for other purposes.  This is consistent with one of the aims of the FSPP to reduce debt.

 

Whilst the outcomes identified in points 1 to 4 above are proposed to be reallocated, they provide Council with the ability to enhance capacity and resources without incurring additional cost.  These items have been incorporated into the 2014/2015 Budget Estimates pending Council approval of the 31 March 2015 Quarter Budget Review to be presented to Council on 21 May 2015 and for the Finance Advisory Committee to consider at this Meeting.

 

It is also more prudent that any positive financial outcomes derived from actions of the FSPP be based on actual outcomes and not estimated outcomes.  In that regard, the financial reporting of outcomes of the FSPP will be in arrears, once the outcomes are known and actions in the FSPP are completed.

 

Further reporting will be provided to the Finance Advisory Committee at future meetings on financial outcomes. This will be done in conjunction the Quarterly Budget Review (QBR) reporting process over the 2014/2015 financial year as part of the recently adopted FSPP by Council at its Ordinary Meeting held on 7 August 2014 (Resolution 14-326).  A register has been developed to track the financial outcomes of the FSPP actions that is envisaged will derive an improved quantifiable financial sustainability outcome overall to Council.

 

Statutory and Policy Compliance Implications

 

Council resolutions 13-148, 13-238 and 14-326.

 

The development of the FSPP can also be considered as a tool to assist Council in its ongoing obligations as defined in Section 9 (The Council’s charter), Section 8 of the Local Government Act 1993.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           5.1 - Attachment 1

Strategy Element:       Expenditure Review

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Expenditure Review Group membership for the 2014/15 financial period confirmed.

DC&CS

July 2014

Progress Update (30 September 2014)

The Group has been re-established.

 

(Action completed)

2.       Expenditure Review Group meetings scheduled for 2014.

DC&CS

July 2014

Progress Update (30 September 2014)

The Group is meeting as required.

 

(Action completed)

3.       Develop Review Project Plan and Timetable.

DC&CS

July 2014

Progress Update (30 September 2014)

Projects and expenditure areas to be reviewed in the 2014/15 Financial Year identified in the adopted 2014/15 FSPP. Other areas identified during the 2014/15 will be included as required. A number of the projects identified are the project responsibility of internal working groups, such as the Strategic Procurement Working Group, established to progress the work required in the individual project Plans.

 

(Action completed)

4.       Report monthly to the Executive Team on the delivery of the Project Plan.

DC&CS

Monthly

Progress Update (30 September 2014)

Reports are provided to ET in accordance with monthly reporting schedules.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Reports are provided to ET in accordance with monthly reporting schedules.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Reports are provided to ET in accordance with monthly reporting schedules.

 

(Action is being progressively implemented)

 

5.       Progress reports to Finance Committee.

DC&CS

Quarterly

Progress Update (30 September 2014)

This is the first report on the implementation of the actions detailed in the adopted 2014/15 FSPP.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

This is the second report on the implementation of the actions detailed in the adopted 2014/15 FSPP.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

This is the second report on the implementation of the actions detailed in the adopted 2014/15 FSPP.

 

(Action is being progressively implemented)

6.       Report to Council through the Quarterly Budget Review any identified expenditure savings.

DC&CS

Quarterly

Progress Update (30 September 2014)

Included in the 30 September 2014 Quarterly Budget Review are two revenue items that have occurred in conjunction with the Financial Sustainability Project Plan being:

 

1.       Recognition of $12,700 new revenue through the resource sharing of Council’s Licence Plate Recognition Equipment with Lismore City Council.  This is consistent with the Partnerships and Collaborations Strategy Element of the Financial Sustainability Project Plan.

 

2.       Recognition of $470,000 excluding GST of new revenue through the sale of the former Telstra Site.  Approximately $458,000 after sale costs is proposed to be transferred to a new Property Development Reserve to assist Council continue Land Review and Property Development Strategy Element of the Financial Sustainability Project Plan through providing funding for progressing the Station Street Mullumbimby subdivision (Action Item 4.)

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Included in the 31 December 2014 Quarter Budget Review are four items that have occurred in conjunction with the Financial Sustainability Project Plan being:

 

1.       Recognition of $5,400 new revenue for the remainder of 2014/2015 in the Public Libraries Budget Program for rental of space for a mobile coffee cart.  Revenue will be greater in 2015/2016 where full year revenue can be identified.

 

2.       Recognition of $20,000 extra funding to progress the planning work of the Station Street subdivision funded from the sale proceeds generated by the former Telstra site sale.  This will assist Council continue Land Review and Property Development Strategy Element of the Financial Sustainability Project Plan.

 

3.       Provision of additional $24,700 to pay out three sewerage fund loans with the Commonwealth Bank and one loan with the South Australian Government Finance Authority.  The four outstanding loans were due to mature between 2015 and 2019 but were reviewed to consider paying out due to small balances and payout penalties.  This will create a small saving in future years in the Sewerage Fund and is consistent with one of the aims of the FSPP to reduce debt.

 

4.       The 31 December 2014 Quarter Budget Review has been able to provide funding without reducing the projected budget surplus of $105,000 to undertake assessments and investigations of the Tyagarah Airfield in accordance with resolution 14-657.  This is also an item of Land Review and Property Development Strategy Element of the FSPP.

 

(Action is being progressively implemented)

 

 

 

Progress Update (31 March 2015)

 

Included in the 31 March 2015 Quarter Budget Review are four items that have occurred in conjunction with the Financial Sustainability Project Plan being:

 

1.       Expenditure savings of $15,000 for the Byron Swimming Pool and $3,900 for the Mullumbimby Pool relating to water use following resolution of water leaks in 2014 has resulted in less budget being required then was provided in 2014/2015.  These funds are being transferred to reserve for the Pools to assist with any possible unforseen costs when the pools are to reopen for the next swimming season.

 

2.       Additional revenue for legal costs recovered of $14,100 has been realised through activities of the Legal Services team.  This is on top of the $9,300 previously recognised.

 

3.       Further additional revenue of $5,700 being realised through new revenue via resource sharing of Council’s Licence Plate Recognition Equipment with Lismore City Council.  This is consistent with the Partnerships and Collaborations Strategy Element of the Financial Sustainability Project Plan.

 

4.       Provision of additional $34,800 for interest and break costs along with an additional $302,100 to pay out the one remaining loan in the Water Fund.  This loan was paid out on 25 March 2015 given the healthy state of Water Fund reserves.  This action will save over the remaining life of the loan originally due to mature in 2021 $48,000 in interest after consideration of the break cost of $41,357 which can be used by the Water Fund for other purposes.  This is consistent with one of the aims of the FSPP to reduce debt.

 

(Action is being progressively implemented

 

7.       Report to Council any recommendations regards policy changes.

DC&CS

June 2015

Progress Update (30 September 2014)

Reports to be provided as required.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Reports to be provided as required.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Reports to be provided as required.

 

(Action is being progressively implemented)


 

Strategy Element:       Revenue Review

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Revenue Review Group confirmed.

DC&CS

July 2014

Progress Update (30 September 2014)

The Group has been re-established.

 

(Action completed)

2.       Revenue Review Group meetings scheduled for 2014.

DC&CS

July 2014

Progress Update (30 September 2014)

The Group is meeting as required.

 

(Action completed)

3.       Develop Review Project Plan and Timetable.

DC&CS

July 2014

Progress Update (30 September 2014)

Projects and revenue areas to be reviewed in the 2014/15 Financial Year identified in the adopted 2014/15 FSPP. Other areas identified during the 2014/15 will be included as required. A number of the projects identified are the project responsibility of internal working groups, such as the Strategic Procurement Working Group, established to progress the work required in the individual project Plans.

 

(Action completed)

4.       Report monthly to the Executive Team on the delivery of the Project Plan.

DC&CS

Monthly

Progress Update (30 September 2014)

Reports are provided to ET in accordance with monthly reporting schedules.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Reports are provided to ET in accordance with monthly reporting schedules.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Reports are provided to ET in accordance with monthly reporting schedules.

 

(Action is being progressively implemented)

5.       Report to the Finance Committee and/or the Council any proposed opportunities for deriving new/additional revenue.

DC&CS

June 2015

Progress Update (30 September 2014)

Reports to be provided as required.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Reports to be provided as required.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Reports to be provided as required.

 

(Action is being progressively implemented)

6.       Report to Council any recommendations regards policy change and/or increases to existing or new revenue sources.

DC&CS

June 2015

Progress Update (30 September 2014)

Reports to be provided as required.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Reports to be provided as required.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Reports to be provided as required.

 

(Action is being progressively implemented)

7.       Prepare submissions and lobby for grant funding for major capital works projects.

DC&CS

June 2015

Progress Update (30 September 2014)

Refer to Annexure 1(b) for information on grant submissions for the September and October 2014.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Grant application opportunities are continually being researched and where applicable applied for.

 

(Action is progressively implemented)

 

Progress Update (31 March 2015)

 

Grant application opportunities are continually being researched and where applicable applied for.

 

(Action is progressively implemented)

 

 

 


 

Strategy Element:       Land Review and Property Development

 

Actions

Action Owner

Action Due Date

Management Comments

General Fund

1.       Roundhouse - Land reclassification process and sale.

DIS

August 2014

Progress Update (30 September 2014)

Liaison and contact with the Department of Planning regarding the planning proposal has been ongoing. DoP are yet to issue a determination.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Gateway determination received from the NSW DoP. Preparation of documentation for the reclassification process has been completed and the public exhibition process will commence in early 2015. A timetable for the reclassification process has been established with a view to completion by the middle of the year. Sale will proceed at the conclusion of this process.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Public Hearing held on 1 April 2015.

 

Public Hearing Report completed. To be reported to Council on 21 May 2015.

 

(Action being progressively implemented)

2.       Lot 12 Bayshore Drive - Voluntary plan of management (VPM), EIS, DA and commence clean up contract.

DIS

June 2015

Progress Update (30 September 2014)

Actions to secure the site, as per the requirements of the EPA, are being implemented.

 

Further contact has been made with the EPA seeking approval to the proposed VPM with a view to completing an EIS based on the concept for restoration presented in the BMack report. The EIS will allow a DA to be lodged for works. EPA approval is still pending.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Approval has been received from the EPA for the voluntary plan of management prepared by Council. The environmental assessment is being prepared in support of the DA which will seek approval for the proposed restoration works. The cost of these works is expected to exceed $1m.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

DA 10.2015.177.1 for Tree Removal being assessed.

 

Pre lodgement DA meeting for works scheduled for 28 April.

 

POM being finalized for submission to the EPA.

 

(Action being progressively implemented)

3.       Telstra site – Sale – proceeds to be used for construction of the Station Street subdivision.

Colin Sims

December 2014

Progress Update (30 September 2014)

Contract of Sale exchanged – settlement process underway and due on 8 October 2014 - $517,000 (inc GST).

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Settlement occurred on 8 October 2014.

 

(Action complete)

4.       Station Street – Subdivision approval and construction contingent from proceeds of the Telstra site sale.

DIS

June 2015

Progress Update (30 September 2014)

Investigations have been completed. Plans and documentation for a 6 lot subdivision prepared and the DA lodged.

Following DA approval, any consent conditions will be incorporated into detailed designs and a detailed cost estimate will be developed.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

The DA has been approved however one of the consent conditions is the retention of a major fig tree that has significant implications for the design of the subdivision in terms of stormwater, sewer, lot access and road works. Options for changes to the subdivision design are being investigated.  A further $20,000 has been allocated for work in the 31 December 2014 Quarter Budget Review.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

A S96 is being prepared for modification of the consent conditions, including removal of the tree with a view to making the subdivision more viable.

 

(Action being progressively implemented)

5.       Manfred Street – Complete reclassification.

DC&CS

June 2015

Progress Update (30 September 2014)

The necessary reclassification is being progressed via a LEP amendment

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

 

Advice has been received from the Planning Consultant on investigation work undertaken in stage 1 of this project to prepare the Planning Proposal. A report is being prepared for Council to consider the next step in progressing the Planning Proposal.

 

(Action being progressively implemented)

 

Progress Update (31 March 2015)

 

Report has been scheduled for 21 May 2015 Ordinary meeting. A copy of advice from the Planning Consultant was distributed to Councillor under the cover of a Memorandum dated 12 March 2015.

 

(Action being progressively implemented)

6.       Yaran Road, Tyagarah Airfield – Investigate flood and environmental options for subdivision (from aerodrome) and development options.

DIS

December 2014

Yarran Road is the north side of the road access to Tyagarah Airfield, and a DA is being prepared for a subdivision with the necessary flood and environment studies being progressed.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Council is preparing a Planning Proposal to appropriately rezone the subdivision area and airport to enhance the viability of the project.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Rezoning progressing, subdivision DA being progressed. Integrated actions being tracked monthly as per project status report E2014/47902.

 

(Action being progressively implemented)

7.       Lot 22 Mullumbimby – Investigation, flood assessment and options development.
* Dependent upon on sale of Telstra site and Station Street.

DIS

June 2015

Progress Update (30 September 2014)

Awaiting the outcomes of the Mullumbimby flood study.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Further assessment is awaiting the outcomes of the Mullumbimby flood study.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Further assessment is awaiting the outcomes of the Mullumbimby flood study.

 

(Action being progressively implemented)

8.       Bayshore Drive Works Depot,
Byron Bay (Lot 102, DP1087996, 1.79 hectares).

DIS

June 2015

Progress Update (30 September 2014)

Review options and costs for relocation of the Bayshore Drive Works Depot.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Initial assessment has been progressed and a report will be prepared for Council.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Assessment is continuing with operational managers considering their short term and longer term needs. A market assessment for the land value has been obtained.

 

(Action being progressively implemented)


 

Water Fund

9.       Fletcher Street – Planning, investigation and DA development around options/concept plans for site redevelopment.

DIS

June 2015

Progress Update (30 September 2014)

A planning meeting has been held with the General Manager. A planning site analysis is being prepared and a budget allocation being sort at the September quarterly review. A commercial assessment and business case will then be developed to inform decision making on a preferred option to develop.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

A draft site assessment report has been completed. Further work is being progressed on options related to parking and the associated implications for potential development.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The project was reported and actions are progressing as per the outcomes of that meeting. Planning is completing a further review of options, particularly in the context of parking and previous site entitlements.

 

(Action being progressively implemented)

Sewer Fund

10.     South Byron STP – Infrastructure demolition.  Future option determination. Start remediation and rezoning.

DIS

June 2015

Progress Update (30 September 2014)

DPWS have been engaged for project management of the stage 1 remediation/ demolition (refer #E2014/36940) and the project is underway.

 

Following a workshop with Council the financial analysis associated with the GHD Master Plan is being reviewed. DPWS are updating the engineering calculations associated with the residential and low key tourism options and Todd Heron White will then complete the update financial analysis. This work will be presented to a further workshop of Council with a view to finalizing a preferred future use for the site which in turn will guide the remediation and rezoning processes.

 

(Action is being progressively implemented)

 

 

Progress Update (31 December 2014)

This project has been workshopped with Council and the outcomes reported to Council. Tenders for demolition will be called in early 2015.

The workshop has identified the need for further analysis of options to inform the process of determining a preferred future use.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Tenders have been called and the assessment panel recommendation reported to 30 April meeting of Council.

 

(Action being progressively implemented)

11.     Brunswick Heads STP – Complete remediation assessment. Start demolition and remediation subject to funding.

DIS

June 2015

Progress Update (30 September 2014)

DPWS have been engaged for project management of this project to: complete detailed site contamination assessments; remediation action plan and audit certification process.  Once this body of work is completed a report can be prepared for Council on the costs and implications of remediation relative to any options for the site.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Work is progressing on the environmental site assessment, remediation action plan and site validation report. The outcomes of this work will inform a report to council regarding the costs and implications of remediation relative to any options for the site.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The cost of remediation will exceed $1 million and there is no prospect of this cost being viably recovered. The project is currently being assessed as part of the new Strategic Business Plan for sewer services with a view to when this project could be progressed and what are the implications for sewer service pricing.

 

(Action being progressively implemented)

12.     Brunswick Valley STP, Vallances Road – Complete rural settlement strategy review.

DIS

June 2015

Progress Update (30 September 2014)

Future use of this land will be considered in the Rural and Urban Settlement Strategy, of which a Discussion Paper is currently being prepared for Councils consideration.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

The future of the Vallances Road site will be considered in the Rural and Urban Settlement Strategy, of which a Discussion Paper is currently being prepared for Councils consideration.

The purchase of an adjacent crown road has been reported to Council, approved and is being implemented.

 

(Action is progressively being implemented)

 

Progress Update (31 March 2015)

 

The adjacent crown road has been purchased which adds nearly a hectare to the holding. A discussion paper has been prepared on the Rural and Urban Settlement Strategy.

 

(Action being progressively implemented)

13.     Bangalow STP – Complete rural settlement strategy review.

DIS

June 2015

Progress Update (30 September 2014)

Future use of this land will be considered in the Rural and Urban Settlement Strategy, of which a Discussion Paper is currently being prepared for Councils consideration.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

The Rural and Urban Settlement Strategy continues to be progressed.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The Rural and Urban Settlement Strategy continues to be progressed.

 

(Action being progressively implemented)

14.     Lot 4 Mill Street – Complete options review, including potential consolidation with the Vallances Road property.

DIS

June 2015

Progress Update (30 September 2014)

Analysis is occurring regarding the relationship of this site with the future of the Vallances Road site as per action 12.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Analysis is occurring regarding the relationship of this site with the future of the Vallances Road site where the future use of this land will be considered in the Rural and Urban Settlement Strategy, of which a Discussion Paper is currently being prepared for Councils consideration.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The Rural and Urban Settlement Strategy continues to be progressed.

 

(Action being progressively implemented)

Waste Fund

15.     Lots 3 and 29 Manse Road – Sell Lot 29 and use funds to pay down loans to reduce debt servicing costs.

DIS

June 2015

Progress Update (30 September 2014)

The DA for the Quarry Landfill project has been lodged.

 

Project approval is expected in 2014/15.

 

Closing and remediation of the southern expansion area will be subject to a separate detailed evaluation process.

 

Sale of Lot 29 could proceed later this financial year.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Assessment of the DA is in progress with additional agency requirements being addressed.

 

The EPA has asked for extra time to provide their assessment.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Analysis of the feasibility of the sale of Lot 29 has occurred. The proximity of the Lot to the resource recovery area (less than 300m) and the fact that the EPA noise limits cannot be achieved mean that sale of both Lot 29 and Lot 3 is not recommended until operations on the adjacent ridge line cease. The matter will be reported to Council.

 

(Action being progressively implemented)

16.     Lot 15 Dingo Lane, Myocum – Quarry landfill approval.

DIS

June 2015

Progress Update (30 September 2014)

It is anticipated that this property will be retained for the foreseeable future as a buffer area for the proposed Quarry landfill. Progress as per action 14.

 

Council has resolved to complete an LEP amendment to reclassify the land as operational. A planning proposal was completed, gateway determination achieved and preparation commenced for public hearing.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

The land reclassification process has progressed and a report will be finalised.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The public hearing has occurred. The finalized public hearing report is being reported to the 30 April meeting of Council.

 

Council resolved via Resolution 15-164 to reclassify the Lot as Operational Land.

 

 

The Quarry landfill project continues to be progressed with a key assessment point being the viability of satisfactorily addressing all the issues raised by the EPA.

 

(Action being progressively implemented)

17.     Lot 16 Dingo Lane, Myocum – Quarry landfill approval.

DIS

June 2015

Progress Update (30 September 2014)

Following project approval for the Quarry landfill, consideration could be given to the future of this property including sale.

 

Council has resolved to complete an LEP amendment to reclassify the land as operational. A planning proposal was completed, gateway determination achieved and preparation commenced for public hearing.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

The land reclassification process has progressed and a report will be finalised.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The public hearing has occurred. The finalized public hearing report was reported to the 30 April meeting of Council.

 

Council resolved via Resolution 15-164 to reclassify the Lot as Operational Land.

 

(Action being progressively implemented)

 


Strategy Element:       Strategic Procurement

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Establish Strategic Procurement Steering Committee (E2014/13942).

DC&CS

July 2014

Progress Update (30 September 2014)

Committee Established

 

(Action complete)

2.       Finalise adopted centre-led procurement model roles and responsibilities (E2014/14115).

 

DC&CS

July 2014

Progress Update (30 September 2014)

Centre-led model finalised and endorsed.

 

(Action complete)

3.       Finalise and recruit the new Strategic Procurement Coordinator role (E2014/13492).

 

DC&CS

31 December 2014

Progress Update (30 September 2014)

Recruitment process underway.

 

(Action being implemented)

 

Progress Update (31 December 2014)

Strategic Procurement Coordinator appointed, commencement date 2 February 2015.

 

(Action complete)

4.       Participate in the NOROC Regional Procurement Roadmap Program (E2014/37752).

 

DC&CS

June 2015

Progress Update (30 September 2014)

Regional kick off meeting held with ArcBlue.  Data analysis process underway, with a further Regional workgroup session scheduled for 10 October 2014.

 

(Action being progressively implemented)

 

Progress Update (31 December 2014)

Second workshop held to identify Regional Procurement Opportunities, and presentation held for the General Managers.  Regional Roadmap Development is continuing with Workshop 3 scheduled for early February 2015.

 

(Action being progressively implemented)

 

Progress Update (31 March 2015)

Regional Procurement Committee established, and with a focus on launching key regional procurement processes focused on volume purchases to achieve best savings outcomes to participating Councils in the next quarter.  Initiative is being facilitated and guided by ArcBlue with oversight from the Regional General Managers Group.

 

(Action being progressively implemented)

5.       Develop and adopt centre-led strategic procurement budget and resource requirements.

 

DC&CS

March 2015

Progress Update (30 September 2014)

No action this quarter

 

(Action to be implemented)

 

Progress Update (31 December 2014)

No action this quarter

 

(Action to be implemented)

 

Progress Update (31 March 2015)

Budget and resources established for the 2015/16 budget period.

 

(Action being progressively implemented)

6.       Begin implementation of new centre-led procurement model, including communication of all roles and responsibilities.

DC&CS

June 2015

Progress Update (30 September 2014)

No action this quarter.

 

(Action to be implemented)

 

Progress Update (31 December 2014)

No action this quarter.

 

(Action to be implemented)

 

Progress Update (31 March 2015)

Engagement and communication strategy developed, and implementation has commenced to ensure high-level engagement in strategic purchasing across the organisation.

 

(Action being progressively implemented)

7.       Finalise strategic procurement roadmap (E2014/14117) action plan and timetable, and begin implementation of the 12 month action plan.

DC&CS

June 2015

Progress Update (30 September 2014)

No action this quarter

 

(Action to be implemented)

 

Progress Update (31 December 2014)

No action this quarter.

 

(Action to be implemented)

 

Progress Update (31 March 2015)

Roadmap action plan finalised and endorsed by the Procurement Steering Committee, and implementation of the first 12 month actions commenced.

 

(Action being progressively implemented)

8.       Review and report expenditure and productivity savings at the end of the 12 month action plan, and undertake review and Business Case for possible Procurement Officer position (E2014/13492) to continue capacity building and savings initiatives.

DC&CS

June 2015

Progress Update (30 September 2014)

No action this quarter

 

(Action to be implemented)

 

Progress Update (31 December 2014)

No action this quarter.

 

(Action to be implemented)

 

Progress Update (31 March 2015)

Completed as part of the organisation restructure.  New position not supported at this time, with redesign of current Infrastructure Services positions proposed as an alternative.

 

(Action being progressively implemented)


Strategy Element:       Policy and Decision Making

 

Actions

Action Owner

Action Due Date

Management Comments

1.       That the format of the Monthly Finance Report (renamed Year to Date Finance Report) be reviewed and that any recommendations for amendments to the reporting format be reported to the FAC.

Finance Manager

30 November 2014

Progress Update (30 September 2014)

Report being prepared for submission to the FAC meeting scheduled for 13 November 2014 to provide an evaluation of the trial and to provide the Committee with option on the format and form of the Monthly Finance report to Council.

 

(Action being implemented)

 

Progress Update (31 December 2014)

Monthly Finance report format adopted by Council in December 2014.  First report for the period ending 31 January 2015 considered by ET on 11 February 2015 and will be distributed to Councillors as adopted by covering memo/email.

 

(Action completed)

2.       Council continue to consider the short, medium and long term financial impacts and the context of Council’s long term financial sustainability in its ongoing policy and decision making processes.

Council

30 June 2015

Progress Update (30 September 2014)

The Finance Manager undertakes a review of the reports to Council on monthly basis and provides comments to Report Writers and the Executive Team on the financial implications. Comments are included in the Reports for the consideration of Council in the decision making process. Resolutions impacting on budgets are considered in the QBR process and then included in the financial modelling used for the preparation of the LTFP.

 

(Action being progressively implemented)

 

Progress Update (31 December 2014)

The Finance Manager undertakes a review of the reports to Council on monthly basis and provides comments to Report Writers and the Executive Team on the financial implications. Comments are included in the Reports for the consideration of Council in the decision making process. Resolutions impacting on budgets are considered in the QBR process and then included in the financial modelling used for the preparation of the LTFP.

 

(Action being progressively implemented)

 

Progress Update (31 March 2015)

 

The Finance Manager undertakes a review of the reports to Council on monthly basis and provides comments to Report Writers and the Executive Team on the financial implications. Comments are included in the Reports for the consideration of Council in the decision making process. Resolutions impacting on budgets are considered in the QBR process and then included in the financial modelling used for the preparation of the LTFP.

 

(Action being progressively implemented)

3.       That any bids for 2013/14 budgets to be carried over to the 2014/15 budget be reported to Council following the end of the 2013/14 financial year.

Finance Manager

30 June 2015

Progress Update (30 September 2014)

This principal has been embedded in the adopted FSPP.

 

(Action to be implemented)

 

Progress Update (31 December 2014)

This matter was reported to and resolved by Council during August 2014.  As indicated in the previous update the principal regarding carryovers will be applied in relation to the 2014/2015 financial year for inclusion in the 2015/2016 budget at that time.

 

(Action completed)

4.       That a new financial management reporting format for internal reporting be developed, implemented and staff trained on use and in the area of financial management.

Finance Manager

30 June 2015

Progress Update (30 September 2014)

Reporting format for monthly reports to the Executive Team developed and implemented. Other elements of the action are being developed for progressive implementation during the 2014/15 Financial Year.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Continued refinements on internal reporting format for ET.  Currently developing new internal financial reports for Managers utilising Excel wizard.  Proposed training scheduled for 18 February 2015.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The Finance Manager provided training to the Executive Team and the Mangers at a Strategic Workshop held on 18 February 2015 on the Financial Reporting Framework for Council and the Internal Monthly Finance Reporting Template. The Template was updated to incorporate the feedback provided during the training session. Further regional training has been arranged through NORCO for Non- Finance Managers with three Managers nominated to attend the session scheduled for 12 May 2015.

 

(Action is being progressively implemented)

5.       That the identified policies be reviewed to incorporate enabling wording and guidelines for Council’s consideration and approval.

ET

30 June 2105

Progress Update (30 September 2014)

Policies to be identified and progressively reported to Council.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Policies to be identified and progressively reported to Council.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Policies to be identified and progressively reported to Council.

 

(Action is being progressively implemented)


 

Strategy Element:       Potential Commercial Opportunities

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Management will progressively prepare and submit to Council reports on any potential commercial opportunities and ventures identified in the Masterplan for the Byron Bay Town Centre.

ET

June 2015

Progress Update (30 September 2014)

Reports will be prepared and submitted to Council during and at the completion of the Masterplan process.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Reports will be prepared and submitted to Council during and at the completion of the Masterplan process.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Reports will be prepared and submitted to Council during and at the completion of the Masterplan process.

 

(Action is being progressively implemented)

2.       Management to prepare and submit to Council reports on any potential commercial opportunities and ventures identified for the following specific projects currently being investigated:

a)       Future management and development of the Tyagarah Aerodrome

b)       Development of Byron Bay Swimming Pool/Café

c)       Redevelopment of the old Byron Bay Library building.

 

 

 

 

 

 

 

Colin Sims

 

 

Colin Sims

 

Phil Warner

June 2015

Progress Update (30 September 2014)

a)       Future Options Tyagarah Aerodrome

Final draft TAG Options report completed

Identification of further areas for investigation

Councillor workshop held

Additional investigations underway:

-         Relocation of CAWI from Tyagarah Airfield land to maximise commercial land use potential

-         Onsite design and costs for the monitoring system proposed

-         Subdivision potential and related flood and environmental studies to maximise commercial land use potential

-         Aviation survey to establish the nature and extent of obstacle penetrations into the airspace glide slope

-         Legal advice to establish council’s legal power of entry to private/Crown/RMS land to undertake works to remove obstacle penetrations into the airspace

-         Legal advice to establish legal precedent regarding council’s ability to undertake works in high conservation areas in context of EP&A Act to ensure compliance with obstacle penetrations into the airspace

-         Scope of works and estimated capital costs to undertake the drainage and compliance works identified

-         Consultation with Crown Lands regarding the lease between Crown and Council for part of the Airfield

 

 

 

 

b)       Development of Byron Bay Swimming Pool/Café

No update this quarter

 

c)       Redevelopment of the old Byron Bay Library building.

Refer to comments under Action 9. of Land and Property Development section.

 

(Action being progressively implemented)

 

Progress Update (31 December 2014)

 

a)       Future Options Tyagarah Aerodrome

·           Project progress reported to Council 11 December 2014

·           Rezoning proposal being prepared to facilitate expansion of commercial opportunities and commercial helicopter activities

·           Grant funding and master plan opportunities being explored.

·           Risk Management Plan being developed for 566 OLS obstacles

·           Capital Works budget being prepared for 2015/16 ten year plan to include compliance and operational work requirements

·           Consultation with the Crown regarding lease/management options is progressing

 

b)       Development of Byron Bay Swimming Pool/Café

Land rationalisation discussions progressing with the Crown, written response to Council’s letter 2012 anticipated in the early new year.

 

c) Redevelopment of the old Byron Bay Library building.

Refer to comments under Action 9. of Land and Property Development section.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

c)       Refer to comments under Action 9 of the Land and Property Development section.

 

 

 


Strategy Element:       Volunteerism

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Review Volunteer Policy and procedures for an enabling framework.

Greg Ironfield

 

Manager Community Development

December 2014

Progress Update (30 September 2014)

A draft Volunteering with Council Policy and associated Guidelines on Engagement of Volunteers were presented to ET for circulation to Managers and relevant staff for comment.  Comments are currently being collated to report back to ET for endorsement to present the Policy to Council for adoption

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

The Volunteering for Council Policy was adopted by Council in December 2014.  The Procedures/Operation Manual to assist in the implementation of volunteer projects for Council was also developed in association with the Policy.

 

(Action completed)

2.       Management will progressively prepare and submit to Council reports on the areas of volunteerism and social procurement.

ET

June 2015

Progress Update (30 September 2014)

Reports will be prepared and submitted to Council when opportunities have been identified for related Projects.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Reports will be prepared and submitted to Council when opportunities have been identified for related Projects.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Reports will be prepared and submitted to Council when opportunities have been identified for related Projects.

 

(Action is being progressively implemented)

 

 

 

Strategy Element:       Collaborations and Partnerships

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Management will progressively prepare and submit to Council reports on any potential opportunities for a collaboration or partnership.

ET

June 2015

Progress Update (30 September 2014)

Reports will be prepared and submitted to Council when collaboration or partnership opportunities are identified.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Reports will be prepared and submitted to Council when collaboration or partnership opportunities are identified.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Reports will be prepared and submitted to Council when collaboration or partnership opportunities are identified.

 

(Action is being progressively implemented)

 


 

Strategy Element:       Asset Management

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Review of the Asset Management Policy.

DIS

December 2014

Progress Update (30 September 2014)

Draft completed and submitted to the Community Infrastructure Advisory Committee. The CICA has chosen to take this draft and continue to work on the approach and content. The next meeting of the CICA is 4 December.

 

Progress Update (31 December 2014)

At the CICA Meeting on 4 December 2014, a draft Policy was confirmed for reporting to Council which will occur at 5 February 2015 Ordinary Meeting.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The draft policy was reported to 5 Feb meeting and placed on public exhibition.

 

(Action is being progressively implemented)

2.       Prepare Asset Management Roles and Responsibilities Matrix.

DIS

December 2014

Progress Update (30 September 2014)

Yet to be progressed.

 

Progress Update (31 December 2014)

Work has commenced in conjunction with the restructure.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

A draft structure for an Asset Management team has been prepared and is being considered as part of the restructure approval process and the 2015/ 16 operations budget process.

 

(Action is being progressively implemented)

3.       Prepare Asset Management Data Source and Repository Matrix.

DIS

December 2014

Progress Update (30 September 2014)

Yet to be progressed.

 

Progress Update (31 December 2014)

Work has commenced.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Preparation for the service plans is identifying where are our sources of asset management data.

 

(Action is being progressively implemented)

4.       Complete Asset Management System Gap Analysis.

DIS

December 2014

Progress Update (30 September 2014)

Yet to be progressed.

 

Progress Update (31 December 2014)

Consultants JRA have been engaged to complete service plans in accordance with a previous review.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Consultants JRA have been engaged to complete service plans in accordance with a previous review that included a Gap Analysis.

A key future action will be the establishment of the organisation wide asset management working group in accordance with the IIMM.

 

(Action is being progressively implemented)

5.       Review of the Asset Management Strategy.

DIS

December 2015

Progress Update (30 September 2014)

Updated asset management plans will inform the review and update of the asset management strategy.

 

Progress Update (31 December 2014)

Updated asset management plans will inform the review and update of the asset management strategy. It is proposed this work will be completed as part of an engagement with JRA in the first half of 2015. The AMP’s will be referred to as Service Plans.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Updated asset management plans will inform the review and update of the asset management strategy. It is proposed this work will be completed as part of an engagement with JRA in the first half of 2015. The AMP’s will be referred to as Service Plans.

The development of asset management capacity within the organisation is a critical objective for the organisation, particularly in addressing the challenges articulated in the Fit For Future (FFF) local government reform.

 

(Action is being progressively implemented)

6.       Review of the Water and Sewer Asset Management Plans following the revaluation process.

DIS

March 2015

Progress Update (30 September 2014)

Asset management plans will be reviewed and revised following the formal revaluation process for an asset class due to enhanced condition assessment data and enhanced financial data. This work is yet to progress.

 

Progress Update (31 December 2014)

Asset management plans will be reviewed and revised following the formal revaluation process for an asset class due to enhanced condition assessment data and enhanced financial data. It is proposed this work will be completed as part of an engagement with JRA in the first half of 2015. AM Plans will be referred to as Service Plans.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Asset management plans will be reviewed and revised following the formal revaluation process for an asset class due to enhanced condition assessment data and enhanced financial data. It is proposed this work will be completed as part of an engagement with JRA in the first half of 2015. AM Plans will be referred to as Service Plans.

 

(Action is being progressively implemented)

7.       Review of the Buildings Asset Management Plan following the revaluation process.

DIS

March 2015

Progress Update (30 September 2014)

Asset management plans will be reviewed and revised following the formal revaluation process for an asset class due to enhanced condition assessment data and enhanced financial data. This work is yet to progress.

 

Progress Update (31 December 2014)

Asset management plans will be reviewed and revised following the formal revaluation process for an asset class due to enhanced condition assessment data and enhanced financial data. It is proposed this work will be completed as part of an engagement with JRA in the first half of 2015. AM Plans will be referred to as Service Plans.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Asset management plans will be reviewed and revised following the formal revaluation process for an asset class due to enhanced condition assessment data and enhanced financial data. It is proposed this work will be completed as part of an engagement with JRA in the first half of 2015. AM Plans will be referred to as Service Plans.

 

(Action is being progressively implemented)

8.       Complete the Roads revaluation process.

DIS

June 2015

Progress Update (30 September 2014)

Planning will be required to fund and resource the detailed condition assessments that will inform the revaluation process.  Considering utilising JRA.

 

Progress Update (31 December 2014)

JRA have been engaged to assist Council with the road and associated infrastructure revaluation.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

In association with consultants JRA who have been engaged to assist council with the road and associated infrastructure revaluation, extensive work has been completed. The revaluation remains on track for completion by May.

 

(Action is being progressively implemented)

9.       Complete the introduction of an asset based ledger through Work Orders.

DIS

June 2015

Progress Update (30 September 2014)

Work Orders have been introduced which means Assets are now directly linked to financial accounting. The new asset based ledger will be further developed by the first round of WO budgeting and subsequent cycles and business use will refine this new tool for asset management.

 

Progress Update (31 December 2014)

Work Orders have been introduced which means Assets are now directly linked to financial accounting. The new asset based ledger will be further developed by WO budgeting and subsequent cycles and business use will refine this new tool for asset management.

 

New WO reporting templates are being developed.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Work Orders have been introduced which means Assets are now directly linked to financial accounting. The new asset based ledger will be further developed by WO budgeting and subsequent cycles and business use will refine this new tool for asset management.

 

New WO reporting templates are being developed.

 

(Action is being progressively implemented)

10.     Implement field based condition assessment software and system.

DIS

December 2014

Progress Update (30 September 2014)

‘Reflect’ assessment software has been assessed and is being considered for implementation (compatibility with Corporate systems).

 

Progress Update (31 December 2014)

‘Reflect’ assessment software has been assessed, (including review by IT), purchased and key business processes are being reviewed to support implementation once resources are allocated/ procured through the restructure process.

 

The software and processes are being implemented for the Better Byron crew.

 

The new risk assessment procedures are based on the use of Reflect to manage the defect process.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

‘Reflect’ assessment software has been purchased and implemented with the Better Byron crew and now with the road inspection process. The Recover software has also been used for major events such as New Years.

 

The new risk assessment procedures are based on the use of Reflect to manage the defect process.

 

The data from Reflect will be used in the assessment of the six month trial of the new draft Risk Management Procedure as per I2014/171.

 

(Action is being progressively implemented)

11.     Introduce Work Order budgeting for the 2015/16 year.

DIS

March 2015

Progress Update (30 September 2014)

Planning has commenced for the implementation of WO Budgeting. It will be necessary to draw together key members from the original WO Implementation Team (particularly the Finance members) to manage the integration of this new approach with the existing Budget processes.

 

Progress Update (31 December 2014)

The decision has been taken to conduct WO budgeting off line for the 15/16 financial year with WO Budgeting being integrated for the 16/17 year.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

The decision has been taken to conduct WO budgeting off line for the 15/16 financial year with WO Budgeting being integrated for the 16/17 year.

 

(Action is being progressively implemented)

12.     Integrate the Authority Asset Module with Customer Relationship Management (CRM).

DIS

June 2015

Progress Update (30 September 2014)

Project planning will commence following the implementation of WO budgeting.

 

Progress Update (31 December 2014)

Project planning will commence following the implementation of WO budgeting.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

 

Project planning will commence following the implementation of WO budgeting.

 

(Action is being progressively implemented)

13.     Review and revision of Special Schedule 7 and Note 13(a) in the financial statements.

DIS

DC&CS

July 2014

Progress Update (30 September 2014)

JRA consultants were engaged to complete this review. This work will be presented to the Internal Audit Committee on 23 October (A copy has been provided to our Auditors. The work has been significant in revising depreciation schedules which in turn reduces the pressure on financial requirements.

 

Progress Update (31 December 2014)

Consultants JRA were engaged to complete this review. This work will be presented to the Internal Audit Committee on 23 October (A copy has been provided to our Auditors). The work has been significant in revising depreciation schedules which in turn reduces the pressure on financial requirements.

 

(Action is being progressively implemented)

 

 

Progress Update (31 March 2015)

 

Consultants JRA completed this review.

 

The roads revaluation will provide new data that will strongly influence preparation of the 2014/15 SS7 Infrastructure Report.

 

(Action completed)

 

 


Strategy Element:       Long Term Financial Planning

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Update Year 1 of the LTFP with the adopted 2014/15 budget estimates.

Finance Manager

31 July 2014

 

Progress Update (30 September 2014)

Year 1 of the LTFP updated with adopted 2014/15 budget estimates and adopted carry over budgets.

 

(Action complete)

2.       Include scenarios within the draft 2014-2024 LTFP based on the initiatives through the Financial Sustainability Project Plan and ensure funding of works for financial years beyond 2014/15.

Finance Manager

 

Progress Update (30 September 2014)

Assumptions reported to FAC on 21 August and adopted by Council 18 September 2014. Scenarios to be also informed by the further work being prepared for different models for the Byron Bay Paid Parking schemes.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Further scenarios to be developed in conjunction with Council’s Fit for the Future response.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

The scenarios developed for the inclusion in Council’s response to the Fit for the Future Benchmarks (Council Improvement Plan (“CIP”)) were workshopped with Councillors at the Strategic Planning Workshop held on 26 March 2015. The modelling undertaken of the scenarios approved at the Workshop have been incorporated in the draft  CIP. The LTFP will be prepared on the basis of these scenarios but Finance staff are waiting on information being prepared by Jeff Roorda and Associates as part of the Road Revaluation process to inform the estimates for Depreciation used in the LTFP.

 

(Action is being progressively implemented)

3.       Report assumptions and the LTFP to the Finance Committee meeting scheduled for 21 August 2014.

Finance Manager

21 August 2014

Progress Update (30 September 2014)

Assumptions reported to FAC on 21 August and adopted by Council 18 September 2014.

 

(Action complete)

4.       Report the final LTFP to the Ordinary meeting scheduled for 18 September 2014.

Finance Manager

11 December 2014

Progress Update (30 September 2014)

In progress with a report presented to the 13 November Finance Advisory Committee Meeting to consider deferring the update to the Long Term Financial Plan to coincide with Council’s response to the Fit for the Future reforms by the NSW Government by 30 June 2015.  It is proposed to consider works that is underway to address asset management planning and capital works planning to directly link this to the updated Long Term Financial Plan with more accurate and complete information then what is currently available.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Report provided to Council at its 11 December 2014 Ordinary Meeting to defer reporting of the LTFP until completion of the Fit for the Future response (Resolution 14-607).

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

Report provided to Council at its 11 December 2014 Ordinary Meeting to defer reporting of the LTFP until completion of the Fit for the Future response (Resolution 14-607).

 

(Action is being progressively implemented)

 


 

Strategy Element:       Performance Indicators

 

Actions

Action Owner

Action Due Date

Management Comments

1.       On going quarterly reporting to the Finance Advisory Committee (FAC) and Council on FSPP outcomes.

Finance Manager

Quarterly

Progress Update (30 September 2014)

First quarter report submitted to FAC meeting on 13 November 2014.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Second quarter report submitted to FAC meeting on 19 February 2015.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

Third quarter report submitted to FAC meeting on 14 May 2015.

 

(Action is being progressively implemented)

2.       Recognition through the QBR process of financial outcomes delivered by the FSPP.

Finance Manager

Quarterly

Progress Update (30 September 2014)

September QBR report submitted to FAC meeting on 13 November 2014 and Council on 20 November 2014.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

December QBR report submitted to FAC meeting on 19 February 2015 and Council on 26 February 2015.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

March QBR report submitted to FAC meeting on 14 May 2015 and Council on 21 May 2015.

 

 

 

3.       Structural changes to both revenue sources and expenditure will be updated in the base budget during the preparation of the 2015/16 Budget.

Finance Manager

June 2015

Progress Update (30 September 2014)

Changes are being identified by the Finance Manager through the QBR process.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Work has commenced on preparation of the 2015/2016 Budget.  Commencing base will be the 2014/2015 Budget after consideration by Council of the 31 December 2014 Quarter Budget Review.  Therefore structural changes to revenue and expenditure sources realised to date will be included.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

Refer previous comment.

 

(Action is being progressively implemented)

4.       The financial outcomes delivered by the FSPP updated into the Council’s Long Term Financial Plan and modelled in the Long Term Financial Plan Scenarios.

Finance Manager

June 2015

Progress Update (30 September 2014)

Changes are being identified by the Finance Manager through the QBR and financial modelling processes.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Changes are being identified by the Finance Manager through the QBR and financial modelling processes.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

Changes are being identified by the Finance Manager through the QBR and financial modelling processes.

 

(Action is being progressively implemented)

5        Assessment of the Note 13 performance ratios disclosed annually in Council’s audited financial statements which should indicate a trend improvement from FSSP outcomes.

Finance Manager

June 2015

Progress Update (30 September 2014)

This assessment is to be incorporated into the self assessment and submission process required to address the Fit For the Future criteria required by OLG by 30 June 2015.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

This assessment is to be incorporated into the self assessment and submission process required to address the Fit For the Future criteria required by OLG by 30 June 2015.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

This assessment is to be incorporated into the self assessment and submission process required to address the Fit For the Future criteria required by OLG by 30 June 2015.

 

(Action is being progressively implemented)

6.       Development of additional performance measures for inclusion in version 3 of the FSPP (2015/2016).

Finance Manager

June 2015

Progress Update (30 September 2014)

Performance Indicators to be developed following consideration of the sustainability and financial indicators included as Fit For the Future criteria.

 

(Action is being progressively implemented)

 

Progress Update (31 December 2014)

Fit for Future indicators have been assessed for Council utilising historical financial data for last three financial years. Fit for Future Response and major revision of Long Term Financial Plan will include projected results of Fit for Future ratios.

 

(Action is being progressively implemented)

 

Progress Update (31 March 2015)

Refer previous comment.

 

(Action is being progressively implemented)

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.2

 

 

Report No. 5.2             Budget Review - 1 January 2015 to 31 March 2015

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

File No:                        I2015/395

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

This report is prepared to comply with Regulation 203 of the Local Government (General) Regulation 2005 and to inform Council and the Community of Council’s estimated financial position for the 2014/2015 financial year, reviewed as at 31 March 2015.

 

This report also provides an opportunity for the Finance Advisory Committee to review the 31 March 2015 Quarter Budget Review prior to it being considered by Council at its Ordinary Meeting to be held on 21 May 2015.

 

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

 

1.   That Council authorise the itemised budget variations as shown in Attachment 2 (#E2015/29355) which includes the following estimated results in the 31 March 2015 Quarterly Review of the 2014/2015 Budget:

 

(a)         General Fund - $1,000 increase in the accumulated surplus

(b)        General Fund - $1,241,600 decrease in reserves

(c)         General Fund - $1,240,600 decrease in the estimated cash position

      (d)        Water Fund - $283,500 decrease in reserves

      (e)         Sewerage Fund - $4,900 decrease in reserves

 

2.       That  Council adopt the revised estimated General Fund Accumulated           Surplus/(Working Funds) surplus of $1,957,550 for the 2014/2015 financial year as at           31 March 2015.

 

 

Attachments:

 

1        Budget Variations for the General, Water and Sewerage Funds, E2015/29579 , page 58  

2        Itemised Listing of Budget Variations for General, Water and Sewerage Funds, E2015/29582 , page 140  

3        Integrated Planning and Reporting Framework (IP&R) required Quarterly Review Statement, E2015/29580 , page 146  

 

 


 

Report

 

Council adopted the 2014/2015 budget on 12 June 2014 via Resolution 14-285.  It also considered and adopted the budget carryovers from the 2013/2014 financial year, to be incorporated into the 2014/2015 budget, at its Ordinary Meeting held 28 August 2014 via Resolution 14-389.  Since that date, Council has reviewed the budget taking into consideration the 2013/2014 Financial Statement results and progress through three quarters of the 2014/2015 financial year.  This report considers the March 2015 Quarter Budget Review.

 

The details of the budget review for the Consolidated, General, Water and Sewer Funds are included in Attachment 1, with an itemised listing in Attachment 2.  This aims to show the consolidated budget position of Council, as well as a breakdown by Fund and Principal Activity. The document in Attachment 1 is also effectively a publication outlining a review of the budget and is intended to provide Councillors with more detailed information to assist with decision making regarding Council’s finances.

 

Contained in the document at Attachment 1 is the following reporting hierarchy:

 

Consolidated Budget Cash Result

 

 

 


General Fund Cash Result     Water Fund Cash Result        Sewer Cash Result

 

 

 


Principal Activity                     Principal Activity                     Principal Activity

 

 

 


Operating Income       Operating Expenditure    Capital income    Capital Expenditure

 

 

The pages within Attachment 1 are presented (from left to right) by showing the original budget as adopted by Council on 12 June 2014 plus the adopted carryover budgets from 2013/2014 followed by the resolutions between July and September, the September review, resolutions between October and December, the December review, resolutions between January and March and the revote (or adjustment for this review) and then the revised position projected for 30 June 2015 as at 31 March 2015.

 

On the far right of the Principal, there is a column titled “Note”.  If this is populated by a number, it means that there has been an adjustment in the quarterly review.  This number then corresponds to the notes at the end of Attachment 1 which provides an explanation of the variation.

 

There is also information detailing restricted assets (reserves) to show Councils estimated balances as at 30 June 2015 for all Council’s reserves.

 

A summary of Capital Works is also included by Fund and Principal Activity.

 

Office of Local Government Budget Review Guidelines:-

 

The Office of Local Government on 10 December 2010 issued the new Quarterly Budget Review Guidelines via Circular 10-32, with the reporting requirements to apply from 1 July 2011.  This report includes a Quarterly Budget Review Statement (refer Attachment 3) prepared by Council in accordance with the guidelines.

 

The Quarterly Budget Review Guidelines set a minimum standard of disclosure, with these standards being included in the Local Government Code of Accounting Practice and Financial Reporting as mandatory requirements for Council’s to address. 

 

Since the introduction of the new planning and reporting framework for NSW Local Government, it is now a requirement for Councils to provide the following components when submitting a Quarterly Budget Review Statement (QBRS):-

 

·    A signed statement by the Responsible Accounting Officer on Councils financial position at the end of the year based on the information in the QBRS

 

·    Budget review income and expenses statement in one of the following formats:

Consolidated

By fund (e.g General, Water, Sewer)

By function, activity, program etc to align with the management plan/operational plan

 

·    Budget Review Capital Budget

 

·    Budget Review Cash and Investments Position

 

·    Budget Review Key performance indicators

 

·    Budget Review Contracts and Other Expenses

 

The above components are included in Attachment 3:-

 

Income and Expenditure Budget Review Statement by Type – This shows Councils income and expenditure by type.  This has been split by Fund.  Adjustments are shown, looking from left to right.

 

Capital Budget Review Statement – This statement identifies in summary Council’s capital works program on a consolidated basis and then split by Fund.  It also identifies how the capital works program is funded. As this is the third quarterly review for the reporting period, the Statement may not necessarily indicate the total progress achieved on the delivery of the capital works program. 

 

Cash and Investments Budget Review Statement – This statement reconciles Council’s restricted funds (reserves) against available cash and investments.  Council has attempted to indicate an actual position as at 31 March 2015 of each reserve to show a total cash position of reserves with any difference between that position and total cash and investments held as available cash and investments.  It should be recognised that the figure is at a point in time and may vary greatly in future quarterly reviews pending on cash flow movements.

 

Key Performance Indicators (KPI’s) –  At this stage, the KPI’s within this report are:-

 

Debt Service Ratio - This assesses the impact of loan principal and interest repayments on the discretionary revenue of Council.

 

Rates and Annual Charges Outstanding Ratio – This assesses the impact of uncollected rates and annual charges on Councils liquidity and the adequacy of recovery efforts

 

Asset Renewals Ratio – This assesses the rate at which assets are being renewed relative to the rate at which they are depreciating.

 

These may be expanded in future to accommodate any additional KPIs that Council may adopt to use in the Long Term Financial Plan (LTFP.)

 

Contracts and Other Expenses - This report highlights any contracts Council entered into during the January to March quarter that are greater then $50,000.

 

CONSOLIDATED RESULT

 

The following table provides a summary of the overall Council budget on a consolidated basis inclusive of all Funds budget movements for the 2014/2015 financial year projected to 30 June 2015 but revised as at 31 March 2015.

 

 

2014/2015 Budget Review Statement as at 31 March 2015

Original Estimate (Including Carryovers)

 1/7/2014

 

Adjustments to Mar 2015 including Resolutions*

 

Proposed Mar 2015 Review Revotes

 

Revised Estimate 30/6/2015 at 31/03/2015

Operating Revenue

76,364,300

2,169,400

2,917,800

81,451,500

Operating Expenditure

84,894,350

2,512,200

2,145,000

89,551,550

Operating Result – Surplus/Deficit

(8,530,050)

(342,800)

772,800

(8,100,050)

Add: Capital Revenue

3,972,700

891,300

266,600

5,130,600

Change in Net Assets

(4,557,350)

548,500

1,039,400

(2,969,450)

Add: Non Cash Expenses

15,890,000

0

0

15,890,000

Add: Non-Operating Funds Employed

1,800,000

470,000

(1,800,000)

470,000

Subtract: Funds Deployed for Non-Operating Purposes

(21,188,100)

(611,200)

(768,400)

(22,567,700)

Cash Surplus/(Deficit)

(8,055,450)

407,300

(1,529,000)

(9,177,150)

Restricted Funds – Increase / (Decrease)

(8,072,300)

407,300

(1,530,000)

(9,195,000)

Forecast Result for the Year – Surplus/(Deficit) – Working Funds

16,850

0

1,000

17,850

 

As the table above highlights, the forecast result for the year has increased by $1,000 for the review period including Council resolutions.  Results by General, Water and Sewerage Fund are provided below:

 

GENERAL FUND

 

In terms of the General Fund projected Accumulated Surplus (Working Funds) the following table provides a reconciliation to the estimated position as at 31 March 2015:

 

Opening Balance – 1 July 2014

$1,939,700

Plus original budget movement and carryovers

16,850

Council Resolutions July – September Quarter

0

September Review Adjustments – increase/(decrease)

0

Council Resolutions October – December Quarter

0

December Review Adjustments – increase/(decrease)

0

Council Resolutions January – March Quarter

0

Recommendations within this Review – increase/(decrease)

1,000

Forecast Working Funds Result – Surplus/(Deficit) – 30 June 2015

17,850

Estimated Working Funds Closing Balance – 30 June 2015

$1,957,550

 

The General Fund financial position has improved by $1,000 as a result of this budget review. The proposed budget changes that have impacted on this result have been highlighted in Attachment 1 and summarised further in this report below.

 

Council Resolutions

 

There were no Council resolutions during the January to March 2015 quarter that impacted the overall 2014/2015 budget result.

 

 Budget Adjustments

 

The budget adjustments identified in Attachment 1 and 2 for the General Fund have been summarised by Budget Directorate in the following table:

 

 

 

 

 

 

Budget Directorate

Revenue Increase/

(Decrease) $

Expenditure Increase/

(Decrease) $

Accumulated Surplus (Working Funds) Increase/ (Decrease) $

General Managers Office

2,000

7,800

(5,800)

Organisational Development

0

4,000

(4,000)

Corporate & Community Services

(1,564,100)

(758,700)

(805,400)

Infrastructure Services

2,218,600

1,417,700

800,900

Sustainable Environment & Economy

136,100

120,800

15,300

Total Budget Movements

792,600

791,600

1,000

 

Budget Adjustment Comments

 

Within each of the Budget Directorates of the General Fund, are a series of budget adjustments identified in detail at Attachment 1 and 2.  More detailed notes on these are provided in Attachment 1, but in summary the major additional items included are summarised below by Directorate and are included in the overall budget adjustments table above. Further implementation of the Organisation Restructure has been incorporated into this budget review which has resulted in the following budget program movements:

 

1.   Legal Services Budget Program transferred from Organisational Development to Corporate and Community Services.

2.   Compliance and Infringement Processing Budget Programs transferred from Corporate and Community Services to Sustainable Economy and Environment.

 

 

 

 

 

General Manager

 

In the General Managers program additional expenditure of $8,400 is required to participate in the Regional Analysis and Comparative Tool for the next 2 years. 

 

In the Economic Development program additional income of $2,000 was received as a NYE donation and additional expenditure of $7,800 for the Bay Lane Enhancement project is required.

 

Organisational Development

 

In the Human Resources program, expenditure increased by $4,000 due to the cost of the General Manager’s perormance review as the original budget was not sufficient.

 

Corporate and Community Services

 

In the Administrative Services - Councillors program, additional expenditure is required to purchase Councillor equipment $5,000 and a contribution for the staff Christmas party $3,200.

 

In the Administration Services program, additional income of $1,700 has been recognised from staff for tea and coffee contributions and additional expenditure of $7,000 for the purchase of tea, coffee and milk supplies for the organisation.

 

In the Financial Services program there is additional income of $16,000 due to the increase in the number of 603 certificates issued.

 

In the Information Services Program an amount of $67,700 has been requested to complete the upgrade of Councils’ Standard Operating Environment (SOE).  This is to be funded through a reduction to other expenditure line items and reserves.

 

In the Property Program the major budget adjustment is due to the removal of sale proceeds from the Roundhouse subdivision.  These sales are now not expected to occur in 2014/15.  Additional revenue was also received from Councils insurer for fire damage from 2013 at the Mullumbimby Civic Hall.  Other income and expenditure adjustments are for various budgets trending lower or higher than the actuals.

 

In the Community Development Program, revenue budget has been adjusted to account for a $20,000 grant for a Liveable Communities Project.  Operating Expenditure has also increased for the grant expenditure with an additional $13,500 funded through developer contributions.

 

In the Legal Services program additional legal fees revenue of $14,100 has been recovered.

 

Infrastructure Services

 

In the Depot Services program, additional revenue of $35,700 has been received from the Sewer Fund for the purchase of canopies for 2 vehicles.  Expenditure has increased due to increased maintenance, servicing and breakdown repairs on older and higher km vehicles, works associated with the changeover of 50 motor vehicles and more tyres.

 

In the Local Roads & Drainage program, revenue increased for paid parking.  Transfer to Reserves has decreased due to a reduction in the transfer to the Infrastucture Renewal reserve as a result of the Roundhouse subdivision not being sold this financial year and an increase to paid parking expenses.

 

In the Roads & Maritime Services (RMS)  program, adjustments have been received from the RMS for the natural disaster events.  Income is offset against expenditure.

 

In the Open Spaces & Recreation program, additional revenue was received from NSW Sport to contribute to the amenities block at Tom Kendall Oval ($25,000), a bond from BVQ for the roundabout contract at the Cavanbah Sports Centre ($36,800) and a reduction to Special Events & Mitigation ($30,000).  Expenditure increased by $45,000 to finalise the costs associated with the APEX park toilets, $25,000 for the amenities block at Tom Kendall Oval and $36,800 to cover any legal costs Council may incur from the Cavanbah Sports Centre roundabout.

 

In the Quarry program, additional revenue of $170,000 is anticipated from the sale of materials for capital works, offset by the same amount in expenditure.

 

In the Rural Fire Service program, additional revenue of $20,300 was received as a reimbursement for an extension on the Mullumbiimby shed.  Additional expenditure is required due to higher than expected vehicle repair costs ($15,000).

 

In the Waste & Recycling program, additional revenue was received from an increase in waste disposal fees, annual charges and a grant for the organics collection system.  It is proposed to increase expenditure due to works associated with the organics collection system grant and various other increases due to the increased volume.

 

In the Cavanbah Sports Centre program, income and expenditure are both trending above budget across various areas.  This facility is relatively new and the full usage of this is still being realised.

 

Sustainable Environment and Economy

 

Additional revenue is occurring in the Development Assessment and Certification and Customer Service Program due to increased development activity.

 

In the Land and Natural Environment Program, the budget is to be amended to cater for a new Applicant Funded DCP's/LEP's ($2,500), an adjustment to the CZMP Byron Bay Embayment ($45,000) and an additional $20,000 for the LEP Public Exhibition.

 

In the Compliance and Infringement Processing Programs, additional revenue is budgeted for fees received for swimming pool inspections and revenue for resource sharing of Council’s licence plate recognition equipment with Lismore City Council.

 

WATER FUND

 

After completion of the 2013/2014 Financial Statements the Accumulated Surplus (Working Fund) balance for the Water Fund, as at 30 June 2014, is $1,958,400 with capital works reserves of $2,500,200.  It also held $9,988,200 in section 64 developer contributions at that time.

 

The estimated Water Fund reserve balances as at 30 June 2015 are derived as follows:

 

Capital Works Reserve

 

Opening Reserve Balance at 1 July 2014

$2,500,200

Plus original budget reserve movement

(246,300)

Less reserve funded carryovers from 2013/2014

(305,800)

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

(121,200)

Resolutions October -  December Quarter – increase / (decrease)

0

December Quarterly Review Adjustments – increase / (decrease)

50,500

Resolutions January -  March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

(283,500)

Forecast Reserve Movement for 2014/2015 – Increase / (Decrease)

(906,300)

Estimated Reserve Balance at 30 June 2015

$1,593,900

 

Section 64 Developer Contributions

 

Opening Reserve Balance at 1 July 2014

$9,988,200

Plus original budget reserve movement

(1,230,700)

Less reserve funded carryovers from 2013/2014

(280,400)

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

0

Resolutions October -  December Quarter – increase / (decrease)

0

December Quarterly Review Adjustments – increase / (decrease)

1,512,400

Resolutions January -  March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

0

Forecast Reserve Movement for 2014/2015 – Increase / (Decrease)

1,300

Estimated Reserve Balance at 30 June 2015

$9,989,500

 

Movements for Water Fund can be seen in Attachment 1, with a proposed estimated decrease to reserves (including S64 Contributions) overall of $283,500 from the 31 March 2015 Quarter Budget Review.

 

SEWERAGE FUND

 

After completion of the 2013/2014 Financial Statements the Accumulated Surplus (Working Fund) balance for the Sewer Fund, as at 30 June 2014, was $1,791,900 with capital works reserves of $3,569,600 and plant reserve of $792,000. It also held $4,939,400 in section 64 developer contributions.

 

The estimated Sewerage Fund reserve balances as at 30 June 2015 are derived as follows:

 

Capital Works Reserve

 

Opening Reserve Balance at 1 July 2014

$3,569,600

Plus original budget reserve movement

1,438,100

Less reserve funded carryovers from 2013/2014

(282,600)

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

(146,200)

Resolutions October -  December Quarter – increase / (decrease)

(19,100)

December Quarterly Review Adjustments – increase / (decrease)

51,500

Resolutions January -  March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

(4,900)

Forecast Reserve Movement for 2014/2015 – Increase / (Decrease)

1,036,800

Estimated Reserve Balance at 30 June 2015

$4,606,400

 

Plant Reserve

 

Opening Reserve Balance at 1 July 2014

$792,000

Plus original budget reserve movement

0

Less reserve funded carryovers from 2013/2014

0

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

0

Resolutions October -  December Quarter – increase / (decrease)

0

December Quarterly Review Adjustments – increase / (decrease)

0

Resolutions January -  March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

0

Forecast Reserve Movement for 2014/2015 – Increase / (Decrease)

0

Estimated Reserve Balance at 30 June 2015

$792,000

 

Section 64 Developer Contributions

 

Opening Reserve Balance at 1 July 2014

$4,939,400

Plus original budget reserve movement

(993,100)

Less reserve funded carryovers from 2013/2014

(594,500)

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

(125,000)

Resolutions October -  December Quarter – increase / (decrease)

0

December Quarterly Review Adjustments – increase / (decrease)

604,600

Resolutions January -  March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

0

Forecast Reserve Movement for 2014/2015 – Increase / (Decrease)

(1,108,000)

Estimated Reserve Balance at 30 June 2015

$3,831,400

 

Movements for the Sewerage Fund can be seen in Attachment 1, with a proposed estimated overall decrease to reserves (including S64 Contributions) of $4,900 from the 31 March 2015 Quarter Budget Review.

 

Legal Expenses

 

One of the major financial concerns for Council over previous years has been legal expenses. Not only does this item represent a large expenditure item funded by rate income, but is also susceptible to large fluctuations. 

 

The table that follows indicates the allocated budget and actual legal expenditure within Council on a fund basis.

 

Total Legal Income & Expenditure as at 31 March 2015

 

 

Program

2014/2015

Budget ($)

 

Actual ($)

Percentage To Revised Budget

Income

 

 

 

Legal Expenses Recovered

9,300

23,340

250%

Total Income

9,300

23,340

250%

 

 

 

 

Expenditure

 

 

 

General Legal Expenses

274,100

120,186

44%

Total Expenditure General Fund

274,100

120,186

44%

 

The current status of the Legal Services Reserve is shown below:

 

Legal Reserve

 

Opening Reserve Balance at 1 July 2014

$779,100

Less Resolution 12-622

$(46,800)

Estimated Reserve Balance at as at 31 March 2015

$732,300

 

Fluctuations in legal expenditure can happen rapidly and for reasons not necessarily within Council’s control. Council has developed and is maintaining a legal reserve to enable Council to manage the potential fluctuations. A reserve balance of $500,000 is considered adequate for this purpose at this time.

 

Financial Implications

 

The 31 March Quarter Budget Review of the 2014/2015 Budget increased the overall budget surplus result by $1,000.  The estimated accumulated surplus (working funds) position attributable to the General Fund also increased by $1,000, with this increasing to an estimated $1,957,550 at 30 June 2015.

 

Statutory and Policy Compliance Implications

 

In accordance with Clause 203 of the Local Government (General) Regulation 2005 the Responsible Accounting Officer of a Council must:-

(1) Not later than 2 months after the end of each quarter (except the June quarter), the responsible accounting officer of a council must prepare and submit to the council a budget review statement that shows, by reference to the estimate of income and expenditure set out in the statement of the council’s revenue policy included in the operational plan for the relevant year, a revised estimate of the income and expenditure for that year.

 

(2) A budget review statement must include or be accompanied by:

 

(a) a report as to whether or not the responsible accounting officer believes that the statement indicates that the financial position of the council is satisfactory, having regard to the original estimate of income and expenditure, and

 

(b) if that position is unsatisfactory, recommendations for remedial action.

 

(3) A budget review statement must also include any information required by the Code to be included in such a statement.

 

Statement by Responsible Accounting Officer

 

This report indicates that the short term financial position of the Council is satisfactory for 2014/2015, having consideration of the original estimate of income and expenditure and budget revisions as per the 31 March 2015 Quarter Budget Review. 

 

This opinion is based on the estimated General Fund Accumulated Surplus (Working Funds) position and that the current indicative budget surplus for 2014/2015 increase by $1,000 in this Budget Review.  Notwithstanding this, Council will need to continue to carefully monitor the 2014/2015 budget over the remainder of the financial year. 

 

The need for careful monitoring is in relation to the pressures on the local roads and drainage budget program due to recent weather and the maintenance expenditure to date.  Council may need to as part of the 30 June 2015 Quarter Budget Review consider revised funding depending upon the eventual maintenance outcome for this financial year.

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 1

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 2

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 3

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