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, 20 August 2015

Time

2.00pm

 

 

 

 

 

 

Ken Gainger

General Manager                                                                                      I2015/861

                                                                                                                       Distributed 18/08/15

 

 


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 14 May 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 30 June 2015.......................................................... 4

5.2       Budget Review - 1 April 2015 to 30 June 2015............................................... 52

5.3       Carryovers for inclusion in 2015/2016 Budget............................................... 164

5.4       Draft Updated Long Term Financial Plan 2015-2025.................................... 175   

 

 


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 30 June 2015

Directorate:                  Corporate and Community Services

Report Author:            Mark Arnold, Director Corporate and Community Services

File No:                         I2015/792

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 30 June 2015.

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

 

That the update report to 30 June 2015 on the 2014/2015 Financial Sustainability Project Plan Action Implementation Plan be received and noted.

 

 

Attachments:

 

1        Financial Sustainability Project Plan Update as at 30 June 2015, E2015/40434 , 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 30 June 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.   Further expenditure savings of $69,100 for the Byron Swimming Pool and Mullumbimby Pool has resulted in less budget being required then was provided in 2014/2015.  These funds are proposed to be transferred to reserve for the Pools to assist with any possible unforseen costs when the pools are to reopen for the next swimming season or for future maintenance/upgrade requirements.  This has also been the case for savings of $41,400 in relation to expenditure for the Mullumbimby Administration Centre that are proposed to be reserved for maintenance associated with air-conditioning in the future.

 

2.   Savings in legal expenditure have been further realised in 2014/2015 where only around half of the budget was expended.  This has left around $108,600 of funds that are proposed to be transferred to the Infrastructure Renewal Reserve for future use.

 

 

3.   Further improved financial outcome from the Cavanbah Sports Centre with revenue exceeding budget again by $42,300.

 

4.   Savings in employee costs due to staff vacancies and implementation of the organisation restructure in Infrastructure Services Supervision and Administration $329,600 and Organisation Development $81,800. These savings have been able to be reallocated to reserves as one off savings related to 2014/2015.

 

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 30 June 2015 Quarter Budget Review to be presented to Council on 27 August 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 2015/2016 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 June 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 June 2015)

Progress reports have been prepared and submitted to each quarterly Finance Advisory Committee meeting 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)

 

Progress Update (30 June 2015)

 

Included in the 30 June 2015 Quarter Budget Review are four items that have occurred in conjunction with the Financial Sustainability Project Plan being:

 

1.       Further expenditure savings of $69,100 for the Byron Swimming Pool and Mullumbimby Pool has resulted in less budget being required then was provided in 2014/2015.  These funds are proposed to be transferred to reserve for the Pools to assist with any possible unforseen costs when the pools are to reopen for the next swimming season or for future maintenance/upgrade requirements.  This has also been the case for savings of $41,400 in relation to expenditure for the Mullumbimby Administration Centre that are proposed to be reserved for maintenance associated with air-conditioning in the future..

2.       Savings in legal expenditure have been further realised in 2014/2015 where only around half of the budget was expended.  This has left around $108,600 of funds that are proposed to be transferred to the Infrastructure Renewal Reserve for future use.

3.       Further improved financial outcome from the Cavanbah Sports Centre with revenue exceeding budget again by $42,300.

4.       Savings in employee costs due to staff vacancies and implementation of the organisation restructure in Infrastructure Services Supervision and Administration $329,600 and Organisation Development $81,800. These savings have been able to be reallocated to reserve as one off savings related to 2014/2015.

 

(Action is being progressively implemented)

 

7.       Report to Council any recommendations regards policy changes.

DC&CS

June 2015

Progress Update (30 June 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 June 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 June 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 June 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 (30 June 2015)

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

 

 

 


 

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)

 

Progress Update (30 June 2015)

Reclassification complete. Subdivision Certificate issued. Plans sent to LPI for registration. Process for sale of the lots progressing including updated valuation, marketing analysis, and sale contracts.

 

(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)

 

Progress Update (30 June 2015)

DA 10.2015.177.1 for Tree Removal approved. Pre lodgement DA meeting for works has identified that a three stage approach involving tree removal, then the environmental works followed by a DA for filling and finalization. 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.

DC&CS

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)

 

Progress Update (30 June 2015)

S96 has been submitted and is currently being assessed.

 

(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)

 

Progress Update (30 June 2015)

Council at its Ordinary meeting held on 21 May 2015 adopted Resolution 15-219 to progress the preparation of the Planning Proposal to reclassify Lot B DP 371044, Lot 7 Section 3 DP 1623, Lot 6 Section 3 DP 1623 and Lot 2 DP 1623 from Community to Operational land. Planning Consultant was advised of the Resolution and instructed to progress with the Statutory process in correspondence dated 22 May 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)

 

Progress Update (30 June 2015)

Rezoning progressing, subdivision DA being progressed.

 

(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)

 

Progress Update (30 June 2015)

The Mullumbimby flood study indicates that this site is significantly constrained due to flooding. The current zoning limits available options and rezoning for residential housing maybe difficult due to floodway status.

 

(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)

Progress Update (30 June 2015)

Tree removal DA approved. Works will commence in August subject to the ground drying.

 

Vegetation management plan for compensatory planting to be prepared.

 

POM for EPA to be finalized.

 

Initial weed clearing completed.

 

Tender to be prepared for environmental works, including sorting of spoil materials

 

Following the environmental works a DA will be lodged for the formal filling of the site with recovered spoil material.

 

(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)

 

Progress Update (30 June 2015)

Planning assessment has been completed and a brief is being developed for the business case assessment.

 

(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)

 

Progress Update (30 June 2015)

Tender awarded, demolition commenced. Due for completion in August.

 

(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)

 

Progress Update (30 June 2015)

Funds available in 2015/16 budget and tender issued for relevant assessment reports.

 

(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 being progressively 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)

 

Progress Update (30 June 2015)

Work is progressing 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 (30 June 2015)

The Rural and Urban Settlement Strategy continues to be progressed.

 

(Action is 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 (30 June 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)

 

Progress Update (30 June 2015)

Following comments from the EPA on the Quarry Landfill EIS indicating difficulties progressing the project, a review of the waste disposal strategy and the project is occurring. It is possible that an alternative involving resource recovery in the quarry void could facilitate operational activities being withdrawn from the current ridge line which in turn could support the potential sale of Lots 3 and 29.

 

(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)

 

Progress Update (30 June 2015)

Following comments from the EPA on the Quarry Landfill EIS indicating difficulties progressing the project, a review of the waste disposal strategy and the project is occurring.

 

(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)

 

Progress Update (30 June 2015)

Following comments from the EPA on the Quarry Landfill EIS indicating difficulties progressing the project, a review of the waste disposal strategy and the project is occurring.

 

(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)

 

Progress Update (30 June 2015)

Regional Procurement Committee progressing a number of key procurement initiatives, such as plant hire and emulsion supply.  Initiatives continue to be facilitated by ArcBlue with oversight from the Regional General Managers Group.

 

(Actions 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)

 

Progress Update (30 June 2015)

Budget and resource requirements established with the adoption of the 2015/16 budget.

 

(Action completed)

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)

 

Progress Update (30 June 2015)

Final stages of the communication and engagement strategy have been locked in with Local Government Procurement training booked for September 2015, all key engagement and communication actions are now complete.

 

(Action completed)

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)

 

Progress Update (30 June 2015)

6-month Strategic Procurement Roadmap actions to 30 June 2015 completed. 
Review of the 12-month Roadmap actions to June 2016 scheduled for 22 July 2016 for next implementation phase.

 

(Actions 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 is being progressively implemented)

 

Progress Update (30 June 2015)

The requirement for a business case to establish a Procurement Officer is no longer required as it has been included as part of the Infrastructure Services position redesign.  However, review and report on expenditure and productivity savings will continue as part of the 2015/16 roadmap key performance indicators. 

 

(Action complete)


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 June 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 is 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 NOROC for Non- Finance Managers with three Managers nominated to attend the session scheduled for 12 May 2015.

 

(Action is being progressively implemented)

 

Progress Update (30 June 2015)

The monthly internal reporting format for ET is continuing to be further refined with additional information for ET being added.  The report in an agreed form is now also being provided to Councillors on a monthly basis for their information.  The monthly finance report for ET has in its most recent version been developed through data extraction via Excel Wizard to reduce the time taken to otherwise manually complete the report. 

 

In terms of the reporting template for Managers, some actual management reports have been created and provided to Managers for feedback.  Now that the 2015/2016 Budget has been adopted on 25 June 2015 with budget programs restructured to reflect the organisation restructure, further reports are to be built using Excel Wizard and distributed to Managers for their use.

 

(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 June 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 June 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 is 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.

 

Progress Update (30 June 2015)

 

a)      Future Options Tyagarah Aerodrome

·          Project progress reported to Council 11 December 2014, actions from that resolution being progressively implemented.

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

·          Grant funding and master plan opportunities being explored.

·          Risk Management Plan developed for OLS obstacles, and mapping planning legislation and implementation plan commenced

·          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 the Land and Property Development section.

 

(Action is being progressively implemented)

 


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)

 

Highlights:

·          Beautify Byron Day October 2014

·          Section 355 Management Committees for community halls and venues had discussion forums in November 2014 and June 2015

·          Byron Greeters at the events of AFL 9’s, Bay Lane Activation/ Byron Bay Surf Festival, Park and Ride 2014, Soul St NYE, Byron Bay Triathlon, and Mullum to Bruns Paddle

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

ET

June 2015

Progress Update (30 June 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 June 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 February meeting and placed on public exhibition.

 

(Action is being progressively implemented)

 

Progress Update (30 June 2015)

Policy adopted

 

(Action completed)

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)

 

Progress Update (30 June 2015)

Draft structure for Asset Management team approved and forward funded.

 

(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)

 

Progress Update (30 June 2015)

Work on the Asset Management Plan continuing with outcomes in this area to be tested in the NSW Local Government Asset Management Preparedness Assessment 2015.

 

(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)

 

Progress Update (30 June 2015)

Work in this area to be tested in the NSW Local Government Asset Management Preparedness Assessment 2015.

 

(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)

 

Progress Update (30 June 2015)

JRA continuing to progress this work.

 

(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)

 

Progress Update (30 June 2015)

Strategic Business Plans are being finalised in accordance with the requirements of the NSW Best Practice Management Guidelines and also reporting under Fit for Future.

 

(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)

 

Progress Update (30 June 2015)

Work progressing on the Asset Management Plan.

 

(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)

 

Progress Update (30 June 2015)

Draft figures provided by JRA .

 

(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)

 

Progress Update (30 June 2015)

Action Completed.

 

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)

 

Progress Update (30 June 2015)

Action Completed.

 

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)

 

Progress Update (30 June 2015)

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)

 

Progress Update (30 June 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)

 

Progress Update (30 June 2015)

 

Financial Plan modelling has been completed to support Council’s CIP lodged with IPART in June 2015 to determine benchmark results.  The five scenarios that Council have endorsed have now been updated into the Long Term Financial Plan model Council utilises for the General Fund.  As the CIP focused primarily on the General Fund, the updated LTFP proposed is General Fund only. Water and Sewerage information will be updated upon receipt of the updated Business Plans for both Water and Sewerage operations.

 

(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)

 

Progress Update (30 June 2015)

 

Financial Plan modelling has been completed to support Council’s CIP lodged with IPART in June 2015 to determine benchmark results.  The five scenarios that Council have endorsed have now been updated into the Long Term Financial Plan model Council utilises for the General Fund.  As the CIP focused primarily on the General Fund, the updated LTFP proposed is General Fund only. Water and Sewerage information will be updated upon receipt of the updated Business Plans for both Water and Sewerage operations.  A separate report is provided to the 20 August 2015 Finance Advisory Committee updating the Long Term Financial Plan (LTFP).

 

(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)

 

Progress Update (30 June 2015)

 

Fourth quarter report submitted to FAC meeting on 20 August 2015.

 

(Action complete)

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.

 

Progress Update (30 June 2015)

 

June QBR report submitted to FAC meeting on 20 August  2015 and Council on 27 August  2015.

 

(Action complete)

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)

 

Progress Update (30 June 2015)

The 2015/2016 Budget Estimates were adopted by Council on 25 June 2015.  Structural changes to revenues and expenses previously recognised have been included.

 

(Action complete)

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)

 

Progress Update (30 June 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)

 

Progress Update (30 June 2015)

 

This assessment was incorporated into the self assessment and submission process required to address the Fit For the Future criteria required by OLG by 30 June 2015.  Further assessment for 2014/2015 results against performance indicators will be presented on a trend basis upon the completion of the 2014.2015 financial statements to be submitted to Council following external audit on 29 October 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 (30 June 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 April 2015 to 30 June 2015

Directorate:                  Corporate and Community Services

Report Author:            James Brickley, Manager Finance

File No:                         I2015/793

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 30 June 2015.

 

This report also provides an opportunity for the Finance Advisory Committee to review the 30 June 2015 Quarter Budget Review prior to it being considered by Council at its Ordinary Meeting to be held on 27 August 2015.

 

The report also provides an indication of the financial position of the Council at 30 June 2015.  It should be noted that the figures provided are subject to completion and audit of the Council’s Financial Statements for 2014/2015. Any major variances to the estimated financial position for the 2014/2015 financial year will be included as part of the report adopting the financial statements during October 2015.

 

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

 

1.      That That Council authorises the itemised budget variations as shown in Attachment 2 (#E2015/52657) which includes the following results in the 30 June 2015 Quarterly Review of the 2014/2015 Budget:

 

a)      General Fund - $0 increase in accumulated surplus/working funds

b)      General Fund - $11,502,900 increase in reserves

c)      Water Fund - $2,601,000 increase in reserves.

d)      Sewerage Fund - $2,807,700 increase in reserves

 

2.      That 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 30 June 2015.

 

Attachments:

 

1        Budget Variations for the General, Water and Sewerage Funds, E2015/52656 , page 61  

2        Itemised Listing of Budget Variations for the General, Water and Sewerage Funds, E2015/52657 , page 135  

3        Integrated Planning and Reporting Framework (IP&R) required Quarterly Review Statement, E2015/52658 , page 148  

 

 


 

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 14-389Since that date, Council has reviewed the budget taking into consideration the 2013/2014 Financial Statement results and progress through the first three quarters of the 2014/2015 financial year.  This report considers the June 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, the March review, resolutions between April and June and the revote (or adjustment for this review) and then the revised position projected for 30 June 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.

 

Division of Local Government Budget Review Guidelines:-

 

The Division 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 Annexure 5(c):-

 

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.

 

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 30 June 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 in future quarterly reviews pending on cash flow movements.

 

Key Performance Indicators (KPI’s) – Council is currently developing a series of KPI’s to be built into the Long Term Financial Plan (LTFP currently under review).  At this stage, the KPI’s within in 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 April to June 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.

 

 

2014/2015 Budget Review Statement as at 30 June 2015

Original Estimate (Including Carryovers)

 1/7/2014

 

Adjustments to June 2015 including Resolutions*

 

Proposed June 2015 Review Revotes

 

Revised Estimate 30/6/2015

Operating Revenue

76,364,300

5,087,200

185,400

81,636,900

Operating Expenditure

84,894,350

4,501,500

(5,539,100)

83,856,750

Operating Result – Surplus/Deficit

(8,530,050)

585,700

5,724,500

(2,219,850)

Add: Capital Revenue

3,972,700

1,157,900

1,458,200

6,588,800

Change in Net Assets

(4,557,350)

1,743,600

7,182,700

4,368,950

Add: Non Cash Expenses

15,890,000

0

0

15,890,000

Add: Non-Operating Funds Employed

1,800,000

(1,330,000)

0

470,000

Subtract: Funds Deployed for Non-Operating Purposes

(21,188,100)

(3,026,400)

9,728,900

(14,485,600)

Cash Surplus/(Deficit)

(8,055,450)

(2,612,800)

16,911,600

6,243,350

Restricted Funds – Increase / (Decrease)

(8,072,300)

(2,613,800)

16,911,600

6,225,500

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

16,850

1,000

0

17,850

 

As the table above highlights, the forecast result for the year has not changed during 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 30 June 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

Council Resolutions April – June Quarter

0

Recommendations within this Review – increase/(decrease)

0

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

17,850

Estimated Working Funds Closing Balance – 30 June 2015

1,957,550

 

Council Resolutions

 

There were no Council resolutions during the April 2015 to June 2015 quarter that impacted the 2014/2015 budget result.

 

Budget Adjustments

 

A summary of the budget adjustments identified in Attachment 1 and 2 for the General Fund has 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

(95,800)

(109,500)

13,700

Organisationl Development

(10,700)

(81,800)

71,100

Corporate & Community Services

(846,500)

(344,900)

(501,600)

Infrastructure Services

(1,671,400)

(1,938,900)

267,500

Sustainable Environment & Economy

774,200

624,900

149,300

Total Budget Movements

(1,850,200)

(1,850,200)

0

 

Budget Adjustment Comments

 

Within each of the Directorates of the General Fund, are a series of proposed budget adjustments identified in detail at attachments 1 and 2. More detailed notes on these are provided in Attachment 1, but in summary the major items included are summarised below by Directorate and are included in the overall budget result presented in the budget adjustments table above with the majority of budget revotes proposed to reflect actual results achieved:

 

The major consideration with this budget review is the reduction in expenditure associated with projects not completed and savings.  Council will also be considering a report to this same Ordinary Council Meeting regarding carryover items from the 2014/2015 financial year not completed to be added to the 2015/2016 Budget Estimates.  This report also considers the implications of that report.

 

As a consequence of these revisions, there is a significant proposed increase to Council’s restricted funds given the cash position overall for the financial year ended 30 June 2015 increased significantly compared to the anticipated reduction in cash expected.  Council was expecting to see a reduction of $10.667million in its cash position for the 2014/2015 financial year, however current indications are is that the June 2015 Quarter Budget Review is requiring a $16.911 million transfer back to reserve funds for the following reasons:

 

1.   Uncompleted works and services of $14.151million subject of a separate report titled ‘Carryovers for inclusion in the 2015/16 Budget’.

2.   Additional revenues received especially from Development and Certification activities of $345,600 compared to budget.

3.   Additional investment interest due to more cash being invested even in an extremely low interest rate environment being $96,700 greater then the estimated budget.

4.   Additional developer contributions received compared to the budget estimates

5.   Expenditure savings in legal expenses of $124,700 compared to budgeted expenditure.

6.   Continued improved financial performance of the Cavanbah Sports Centre where revenue has exceeded budget by $42,300.

7.   Savings in employee costs associated with staff vacancies and organisation restructure implementation in Organisation Development $81,800 and Infrastructure Services Administration and Supervision $329,600.

8.   Additional revenue generated by Council’s two holiday parks that have exceeded budget by $445,500.  Total revenue generated by both First Sun Holiday Park and Suffolk Beachfront Holiday Park for the financial year ended 30 June 2015 is $3.939million.

 

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:

 

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 to March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

(283,500)

Resolutions April to June Quarter – increase / (decrease)

(820,000)

June Quarterly Review Adjustments – increase / (decrease)

1,773,100

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

$46,800

Estimated Reserve Balance at 30 June 2015

$2,547,000

 

 

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

Resolutions April – June Quarter – increase / (decrease)

0

June Quarterly Review Adjustments – increase / (decrease)

827,900

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

$829,200

Estimated Reserve Balance at 30 June 2015

$10,817,400

 

Movements for Water Fund can be seen in Attachment 1, with a proposed estimated increase to reserves (including S64 Contributions) overall of $2,601,000 from this 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)

Resolutions April - June Quarter – increase / (decrease)

(222,200)

June Quarterly Review Adjustments – increase / (decrease)

423,000

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

$1,237,600

Estimated Reserve Balance at 30 June 2015

$4,807,200

 

Plant Reserve

 

Opening Reserve Balance at 1 July 2014

$792,000

Plus original budget reserve movement

0

Less reserve funded carryovers from 2012/2013

0

Reserve movements from September Quarter – increase / (decrease)

0

Reserve movements from December Quarter – increase / (decrease)

0

Reserve movements from March Quarter – increase / (decrease)

0

Reserve movements from June Quarter – increase / (decrease)

(7,000)

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

($7,000)

Estimated Reserve Balance at 30 June 2015

$785,000

 

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

Resolutions April – June Quarter – increase / (decrease)

0

June Quarterly Review Adjustments – increase / (decrease)

2,396,700

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

$1,288,700

Estimated Reserve Balance at 30 June 2015

$6,228,100

 

Movements for the Sewerage Fund can be seen in Attachment 1, with a proposed estimated increase to reserves (including S64 Contributions) overall of $2,812,700 from this review.

 

Legal Expenses

 

One of the major financial concerns for Council over previous years was legal expenses. Not only does this item represent a drain on rate income, but it is also susceptible to large fluctuations and needs to be continually monitored.

 

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

 

Total Estimated Legal Income & Expenditure as at 30 June 2015

 

 

Program

2014/2015

Budget ($)

 

Actual ($)

Percentage To Revised Budget

Income

 

 

 

Legal Expenses Recovered

23,400

23,880

102%

Total Income

23,400

23,880

102%

 

 

 

 

Expenditure

 

 

 

General Legal Expenses

274,100

149,289

54%

Total Expenditure General Fund

274,100

149,289

54%

 

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 30 June 2015

$732,300

 

Financial Implications

 

The 30 June 2015 Quarter Budget Review of the 2014/2015 Budget Estimates has maintained the expected estimated budget surplus attributable to the General Fund of $17,850 assuming all revotes of income and expenditure for Council’s consideration are approved.  Overall, the short term financial position of Council still needs to be carefully monitored on an ongoing basis. However having said that, it is estimated that the General Fund Accumulated Surplus (Working Funds) result of $1,957,550 is now in excess of the adopted General Fund Accumulated Surplus (Working Funds) target of $1,000,000 for the General Fund.  Maintaining this result through the financial year is a further achievement for Council.

 

It is expected also given the level of reserve funds compared to total cash and investments at 30 June 2015, Council is likely to have an unrestricted cash balance currently estimated at $1,054,000.  This is another further achievement for Council maintaining this result throughout the financial year.

 

Notwithstanding that Council has maintained during the year both of its short term funding liquidity goals, these goals are more about liquidity.  Council certainly still has bigger issues in the longer term regarding its financial sustainability such as the provision of adequate funding for the maintenance and renewal of infrastructure assets.  These issues are certainly the focus of the ‘Fit for the Future’ program that the NSW Government has issued to Councils in NSW.

 

The outcomes associated with this Budget Review need to be considered in context that they are indicative financial outcomes for the 2014/2015 financial year.  Council is yet to finalise its financial statements for the year ended 30 June 2015 which will be subject to external independent audit.

 

It is expected that Council will receive a report to adopt its financial statements for the year ended 30 June 2015 at its Ordinary Meeting to be held on 29 October 2015 where the final financial results for the year will be presented.

 

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 the 2014/2015 financial year, having consideration of the original estimate of income and expenditure at the 30 June 2015 Quarter Budget Review.

 

This opinion is based on the estimated General Fund Accumulated Surplus (Working Funds) position and the expected improvement of that position by the current indicative budget surplus of $17,850 for 2014/2015.

 

 


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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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                5.2 - Attachment 3

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Staff Reports - Corporate and Community Services                5.2 - Attachment 3

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                      5.3

 

 

Report No. 5.3             Carryovers for inclusion in 2015/2016 Budget

Directorate:                  Corporate and Community Services

Report Author:            James Brickley, Manager Finance

File No:                         I2015/853

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:                    This report is prepared to allow the Finance Advisory Committee to consider the carryover budget allocations for the works and services, either commenced and not completed, or not commenced in the 2014/2015 Financial Year for inclusion in the 2015/2016 Budget Estimates.

 

                                      Each year Council allocates funding for works and services across all programs. For various reasons, some of these works and services are incomplete at the end of the financial year. The funding for these works is restricted at the end of the financial year, and is carried over as a budget allocation revote to the following year, to fund the completion of the work or service.

 

This report identifies all the works and services recommended to be carried over from the 2014/2015 Financial Year to the 2015/2016 Budget Estimates. The report also identifies the funding for each recommended budget allocation carryover.

 

In compiling this report the Financial Sustainability Project Plan (FSPP) 2014/2015, namely Part 7 regarding ‘Policy and Decision Making has also been considered.

 

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

1.      That he works and services, and the respective funding shown in attachment 1 (#E2015/50268), attachment 2 (#E2015/50270) and attachment 3 (#E2014/50271) be carried over from the 2014/2015 Financial Year and that the carryover budget allocations be adopted as budget allocation revotes for inclusion in the 2015/2016 Budget Estimates.

 

2.      That Council reallocate the adopted 2015/2016 Special Rate Community Building Maintenance outlined in Table 3 of this report to the program outlined in Table 4 of                                                                                                this report.

 

 

Attachments:

 

1        Carryovers and funding for inclusion in 2015/2016 Budget - General Fund, E2015/50268 , page 169  

2        Carryovers and funding for inclusion in the 2015/2016 Budget - Water Fund, E2015/50270 , page 173  

3        Carryovers and funding for inclusion in the 2015/2016 Budget - Sewer Fund, E2015/50271 , page 174  

 

 


 

Report

 

Each year Council allocates funding for works and services across all programs. For various reasons, some of these works and services are incomplete at the end of the financial year. The funding for these works and services is restricted at the end of the financial year to be carried over to the following year for completion.

 

This report identifies all the works and services to be carried over to the 2015/2016 Budget Estimates and the respective funding of each, relating to works and services not completed during the course of the 2014/2015 financial year. The specific details of all carryover works and services subject of this report are outlined for General Fund at attachment 1, Water Fund at attachment 2 and Sewer Fund at Attachment 3.

 

Financial Implications

 

The works and services included in attachments 1, 2 and 3 are fully funded and have no impact on the General Fund Accumulated Surplus (Working Funds) position of Council or the 2015/2016 Budget Estimates result. As in previous years there is again a significant amount of carryovers to be brought forward to the current financial year. Table 1 below provides a history of the value of carryovers in recent years with the proposed carryovers for 2015/2016 $174,800 less then the carryovers related to the 2014/2015 financial year.

 

Table 1 - Value of budget carryovers 2011/12 – 2015/16

 

Fund

2011/12 ($)

2012/13 ($)

2013/14 ($)

2014/15 ($)

2015/16 ($)

General

5,723,500

8,596,400

6,181,100

12,863,500

10,550,300

Water

843,200

579,800

1,150,300

586,200

1,671,900

Sewer

3,180,600

1,852,500

1,703,700

877,100

1,929,000

Total

9,747,300

11,028,700

9,035,100

14,326,800

14,151,200

 

General Fund

 

The value of works carried over to 2015/2016 for the General Fund are $2,313,200 less than that carried over for the 2014/2015 year.  Of the $10,550,300 of carryovers, approximately 33% ($3,492,200) is attributable to the natural disaster events that Byron Shire has experienced since January and February 2013.  These identified works have been authorised and will be funded by the Roads and Maritime Services (RMS).

 

The Byron Bay Library represents approximately 5% ($573,100) of the General Fund carryovers.  Although this project has been completed, there remains the need to have funding available to fund the cost of the upgrade to the air conditioning system.

 

Special Rate funded community building maintenance and public toilet upgrades within the Facilities Management Program represent approximately 8% ($908,200) of the General Fund carryovers.  It is anticipated these works will be delivered by June 2016.

 

Local Roads and Drainage projects not completed in 2014/2015 to be carried forward to 2015/2016 also account for $2,222,200 of the General Fund Carryovers or 21%.

 

Waste management grant funded works represent approximately 5% ($581,900) of the General Fund carryovers.

 

 

 

 

Water and Sewer Funds

 

Carryovers for the Water and Sewer Funds have increased by $1,085,700 and $1,051,900 respectively compared to the carryover applicable for the 2014/2015 financial year. 

 

In terms of the overall carryovers included at attachments 1, 2 and 3, where the bulk of the carryovers related to projects in the Infrastructure Services Directorate, the following table outlines for Councillors information as to the extent of carryovers where works are in progress or contracts awarded at the time this report has been prepared:

 

Table 2 – Schedule of Carryover works current status

 

Project

Carryover $

Project Status

Fletcher St Byron Lighting Upgrade

50,000

Works to be completed August 2015

Revision of PAMP

25,100

Works in progress at 30 June 2015

24 South Beach Lane Overland Flow Path

6,600

Works completed in July 2015

Wilson Creek PS Bus Bay

104,600

Works in progress at 30 June 2015

Bangalow Road Talofa - Stage 2

17,200

Works in progress at 30 June 2015

Poinciana Car Park Mullumbimby

86,900

Works now complete

Main Arm Road Blindmouth Ck Causeway

49,900

Works in progress at 30 June 2015

Left Bank Road & Azalea St Mullumbimby

327,100

Works in progress at 30 June 2015

Orana Road Ocean Shores

62,800

Works in Progress at 30 June 2015

Bus Zone Rajah Road

5,500

Works now complete.

Wilsons Creek – Slip Jan 2012

 

164,500

Contract works in defects liability period

Wilsons Creek Road - Lavertys Gap Jan 2013

42,500

Contract works in defects liability period

Possum Shoot Road - Lower Slip Jan 2013

 

35,300

Contract works in defects liability period

Possum Shoot Road - Upper Slip Jan 2013

 

68,300

Contract works in defects liability period

Federal Road Slip 307

 

7,300

Contract works in defects liability period

Upper Wilsons Creek Slip  Jan 2013

1,301,800

Contract works in progress

Wanganui Slip Jan 2013

801,200

Contract works in progress

Natural Disaster Works – January 2015

880,600

Contract works in progress

Upper Coopers Ck Rd Final Repair Jan 2013

180,000

Contract works in defects liability period

Brunswick Heads Boat Ramp – Floating Pontoon

102,600

Order placed and deposit paid. Install before Christmas

Restoration of Lot 12 Bayshore Drive

143,500

Works in progress

Brunswick Heads Oval Picket Fence

39,600

Delivery of materials expected early August 2015

Byron Bay CCTV Apex Park Johnson St

187,400

Contract awarded

Amenities block Tom Kendall Oval

152,900

Works in progress

Kitchen Caddies and Liners

48,700

Completed July 2015

Assembly and Distribution of MGB

90,000

Completed July 2015

Organics Collection Service Communication & Education

79,100

Majority completed July 2015

Organics Mobile Garbage Bins

100,000

Project completed

BRSCC Solar Update

81,500

Works commenced/contract awarded

Mullumbimby Trunk Main Replacement

466,200

Contract awarded

South Byron STP Demolition/Removal

973,300

In progress – contract awarded

Brunswick Heads STP detailed Site Contamination study

71,000

In progress

Coopers Shoot Reservoir Upgrade

160,100

Contract awarded.

Total

$6,913,100

 

 

In addition to the carryover items subject to this report, there is also a need to amend the original 2015/2016 Budget Estimates for the special rates funded community buildings maintenance program adopted by Council on 25 June 2015 via Resolution 15-293.  Due to an administrative error, the correct staff budget submission was not included in the 2015/2016 Budget Estimates for Council to consider.  As a result, Council adopted the following program in Table 3 below:

 

Table 3 – Adopted Special Rates Funded Community Buildings Maintenance Program:

 

Item

Budget $

2320.051 Urgent Unplanned Maintenance

34,500

2320.141 Asbestos Compliance Register

92,500

2320.142 RCD Electrical Compliance

62,500

2320.146 Suffolk Park Hall 

69,000

2320.147 Bangalow A & I Hall

30,000

2320.148 Pre-School Fire Protection

46,000

                              Total

334,500

 

The required actual budget program for 2015/2016 is outlined in Table 4 below:

 

Table 4 – Required Special Rates Funded Community Buildings Maintenance Program

 

Item

Budget $

2320.014 Brunswick Valley Community Centre

81,000

2320.051 Urgent Unplanned Maintenance

2,500

2320.125 Ocean Shores Community Centre

150,000

2320.136 South Golden Beach Hall

24,000

2320.139 Mullumbimby Drill Hall

17,000

2320.151 Asbestos Removal Program

60,000

                              Total

334,500

 

Whilst Council in accordance with Clause 211 of the Local Government (General) Regulation 2005 conducted its annual meeting to approve expenditure and voting of money on 25 June 2015 via Resolution 15-293, the expenditure items subject of this report were not included in the 2015/2016 Budget Estimates but now need to be.  The intent of this report is to seek Council approval to revote the carryovers from the 2014/2015 financial year and to adopt the budget allocation carryovers for inclusion in the 2015/2016 adopted Budget Estimates.

 

The Strategic Planning Committee at its meeting held on 28 March 2013 considered Report 4.3 on the Council’s financial position for the 2012/2013 financial year.  The recommendations from this meeting were adopted by Council at its Ordinary Meeting held on 18 April 2013 through resolution 13-164. Committee recommendation SPC 4.3 in part 5 included the following process to be applied to the consideration of any amount identified as a carryover to the 2013/14 and future Budgets and funded from general revenues:

 

That Council determines that any general revenue funded allocated expenditure, not

expended in a current financial year NOT be automatically carried over to the next

financial year before it is reviewed and priorities established.

 

Resolution 13-164 has also been incorporated into Part 7 – ‘Policy and Decision Making’ of the Financial Sustainability Project Plan (FSPP) 2014/2015 considered by Council at its Ordinary Meeting held on 7 August 2014.

 

Statutory and Policy Compliance Implications

 

Clause 211 of the Local Government (General) Regulation 2005 outlines the requirements of Council relating to authorisation of expenditure.  Specifically the Clause 211 states:

 

(1)          A council, or a person purporting to act on behalf of a council, must not incur a liability for the expenditure of money unless the council at the annual meeting held in accordance with subclause (2) or at a later ordinary meeting:

 

(a) has approved the expenditure, and

 

(b) has voted the money necessary to meet the expenditure.

 

(2)          A council must each year hold a meeting for the purpose of approving expenditure and voting money.

 

Council resolution 13-164

 

Part 7 – ‘Policy and Decision Making’ of the Financial Sustainability Project Plan (FSPP) 2014/2015.

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                5.3 - Attachment 1

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Staff Reports - Corporate and Community Services                5.3 - Attachment 2

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                5.3 - Attachment 3

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                      5.4

 

 

Report No. 5.4             Draft Updated Long Term Financial Plan 2015-2025

Directorate:                  Corporate and Community Services

Report Author:            James Brickley, Manager Finance

File No:                         I2015/854

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

The Long Term Financial Plan (LTFP) is a requirement under the Integrated Planning and Reporting Framework for NSW Local Government and forms part of the Resourcing Strategy.

 

 A council in its Resourcing Strategy is required to identify the resources required to implement the strategies established by the Community Strategic Plan (CSP). The Strategy must include, in addition to the LTFP, a Workforce Plan and a Asset Management Plan.

 

Council last updated its Long Term Financial Plan at its Ordinary Meeting held on 12 December 2013 through resolution 13-640.

 

A report was provided to the Finance Advisory Committee at its Meeting held on 21 August 2014 where it considered and recommended assumptions/scenarios for Council to consider in relation to the 2014-2024 LTFP.

 

Upon release of the NSW Government’s ‘Fit for the Future’ regime and the need for Council to submit a Council Improvement Program (CIP), a report was prepared for the Council Meeting held on 11 December 2014 where Council resolved not to update its LTFP until it had prepared its response to the NSW Government’s Fit for the Future assessment (res: 14-607).

 

This report is provided to the Finance Advisory Committee to consider and review the proposed assumptions and scenarios for inclusion in the updated Draft Byron Shire Council Long Term Financial Plan 2015-2025 which incorporates Council’s CIP response.  At the time of preparing this report, the Draft LTFP 2015-2025 document is not finalised, but will be distributed prior to, or at the Finance Advisory Committee Meeting to be held on 20 August 2015.

 

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

 

That Council adopt the updated Draft Long Term Financial Plan 2015-2025 for the General Fund and that the overall Long Term Financial Plan be further updated upon completion of the Water and Sewerage Business Plans.

 

 

 

 

 


 

Report

 

Background

 

The Long Term Financial Plan (LTFP) is a requirement under the Integrated Planning and Reporting Framework for NSW Local Government and forms part of the Resourcing Strategy.  A Resourcing Strategy is a document Council must produce to detail the provision of resources required to implement the strategies established by the Community Strategic Plan (CSP).

 

Council last updated its Long Term Financial Plan at its Ordinary Meeting held on 12 December 2013 through resolution 13-640 and is required to update LTFP at a minimum on an annual basis. 

 

The Long Term Financial Plan is due to be reviewed again.

 

As background, the requirement for an LTFP is governed by Section 403 of the Local Government Act 1993.

 

The LTFP provides a framework in which a Council can assess its revenue building capacity to meet the activities and level of services outlined in its Community Strategic Plan.  It also:

 

·    Establishes greater transparency and accountability of Council to the Community.

·    Provides an opportunity for early identification of financial issues and any likely impacts in the longer term.

·    Provides a mechanism to solve financial problems as a whole, see how other plans fit together and understand the impact of some decisions on other plans or strategies.

·    Provides a means of measuring Council’s success in implementing strategies.

·    Confirms that Council can remain financially sustainable in the longer term.

 

The Long Term Financial Plan (LTFP) must support or provide for the following essential elements:

 

·    Must be used to inform the decision making during the finalisation of the Community Strategic Plan and the development of the Delivery Program.

·    Must be for a minimum of 10 years.

·    Must be updated at least annually as part of the development of the Operational Plan.

·    Must be reviewed in detail as part of the four yearly review of the Community Strategic Plan.

 

The basic structure of the Long Term Financial Plan (LTFP) must include the following:

 

·    Projected income and expenditure, balance sheet and cash flow statement.

·    Planning assumptions used.

·    Methods of monitoring financial performance.

·    Sensitivity analysis and modelling for different scenarios.

 

Draft Long Term Financial Plan 2015-2025

 

This report is provided to the Finance Advisory Committee to consider and review the proposed assumptions and scenarios to update the Draft Byron Shire Council Long Term Financial Plan 2015-2025 that incorporates revised assumptions (if any) and proposed scenarios.

 

Assumptions

 

Based on Resolution 13-376, the assumptions underpinning the updated Draft LTFP 2013-2023:

 

·    Working Funds Balance to be set to at least $1,000,000.

·    Rate pegging to be linked to the Consumer Price Index (CPI).

·    General rate income growth per annum (new assessments) from development 0.5%.

·    Salary and wage indexation to be set at Consumer Price Index (CPI) plus 0.75%.

·    All other costs to be indexed by the Consumer Price Index (CPI)

·    Investment rates will be the 90 day bank bill rate.

·    Loan borrowing rates will be assumed at the current investment bill rate for the respective term plus 0.70%.

·    New loan borrowings will only be for the following:

Capital works where funding for annual recurrent operational costs attributable to new assets has been factored into the budget as affordable and funded.

To reduce the funding gap for the renewal of existing infrastructure. Including application for loan interest subsidies under the Local Infrastructure Renewal Scheme (LIRS).

When it is for commercial purpose and repayments can be met from additional revenue sources.

The term of the loan must also accord with Council’s loan borrowing policy 09/006 in that the loan borrowing term should be relevant to the useful life of the asset being funded from the loan borrowings.

 

In addition to the above, the Byron Shire Council Long Term Financial Plan (LTFP) is assumed to have as its base case all of the outcomes identified by the Community Strategic Plan, Delivery Program and Operational Plan and by virtue of that is linked to those documents.

 

For the purposes of developing the Draft 2015-2025 Long Term Financial Plan, it is considered these assumptions are appropriate and are still valid along with the lodged Council Improvement Plan (CIP). 

 

Scenarios

 

The base case scenario contained in the updated Draft LTFP 2015-2025 is the current 2015/2016 budget estimates relevant to the current Operational Plan adopted by Council on 25 June 2015 (Resolution 15-294). 

 

Five scenarios will be built off the base case scenario to be included in the updated Draft LTFP 2015-2025. The proposed scenarios will be represented by projected financial statements including income statement and balance sheet based on the disclosure requirement of the LTFP.  The scenarios are proposed to be for General Fund only as follows:

 

·    Base Scenario – Current Original 2015/2016 Budget Estimates plus 9 year projections based on current service levels as per resolution 15-294 and the base case outlined in Council’s CIP response.

 

·    Scenario 1 – Realisation of $2.1million per annum from 2016/2017 through the introduction of an expanded paid parking scheme in Byron Bay.  This is further supplemented by an additional $600,000 revenue in 2017/2018 from implementation of paid parking at Wategoes beach.  Proceeds of this revenue will be all allocated to asset renewal.  It is also assumed that any revenue derived in 2015/2016 will offset costs to establish the scheme. 

 

·    Scenario 2 - Based off the Base Scenario plus Scenario 1 plus the realisation of operational land assets that may be considered surplus to Council requirements as per the adoption of the Financial Sustainability Project Plan (FSPP) 2014/2015, Section 5 – Land Review and Property Development.  Proceeds of land sales are also assumed to be directed towards asset renewal.

 

·    Scenario 3 – is based on the base case, plus scenario 1, plus scenario 2, plus recognition of at 1% efficiency saving in General Fund Materials & Contracts plus Other Expenses.  The efficiency saving in operational costs is through Strategic Procurement initiatives.  It assumes no impact on asset renewal but in terms of dollar spend but provide more funding for works.

 

·    Scenario 4 – is based on the base case, plus scenario 1, plus scenario 2, plus scenario 3 plus includes an annual ongoing rate increase of 3% above the rate peg.  This option considers a view of the Independent Local Government Review Panel that rate increases over and above the rate peg amount of no more then 3% may not require approval by the Independent Pricing and Regulatory Tribunal. (IPART).  This scenario assumes that the revenue generated is allocated 50% to asset maintenance and 50% to asset renewal.

 

·    Scenario 5 – is based on the base case, plus scenario 1, plus scenario 2, plus scenario 3, plus scenario 4 plus further realisation of additional rate revenue through a special rate variation under Section 508(A) of the Local Government Act 1993 from 2017/2018 onwards for four successive years then remaining a fixed addition to Council’s general revenue. The proposed increase is 10% per annum including rate pegging and any increase outlined in scenario 4.  A proposal to undertake asset renewal works for roads and bridges would be funded from this increase if approved.

 

The scenarios above align with the adopted Council Improvement Plan that Council has lodged with the Independent Pricing and Regulatory Tribunal (IPART) and are consistent with the intent of resolution 14-607

 

Whilst it is expected the LTFP should be a consolidated document ie including all funds of Council combined, the Water and Sewerage information has been excluded as it needs to be reviewed to be consistent with updated Business Plans for Water and Sewerage that are under development at this stage.  It is suggested that the LTFP can be updated again once the Water and Sewerage Business Plans have been finalised and reported again to the Finance Advisory Committee for consideration.

 

The above five scenario are examples of how the LTFP can undertake financial modelling and assist decision making.  It is suggested that the three scenarios identified above are to be the scenarios to be included in the updated LTFP for 2015-2025.

 

The updated Draft LTFP 2015-2025 will also demonstrate performance indicators relating to the financial sustainability of Council utilising a traffic light indicator meaning Green is good, Yellow is satisfactory and Red is unsatisfactory and needs attention.

 

Financial Implications

 

There are no direct financial implications associated with this report.  The Long term Financial Plan (LTFP) provides Council with a tool to model financially impacts of policy decisions and be able project the financial sustainability of Council based on assumptions over the longer term.

 

Statutory and Policy Compliance Implications

 

The requirement for Councils to develop a Long Term Financial Plan is detailed in Section 403 of the Local Government Act 1993 as follows:


 

403   Resourcing strategy

(1)  A council must have a long-term strategy (called its resourcing strategy) for the provision of the resources required to implement the strategies established by the community strategic plan that the council is responsible for.

 

(2)  The resourcing strategy is to include long-term financial planning, workforce management planning and asset management planning.

 

The Office of Local Government has also issued a publication in regard to the LTFP on 7 December 2010 and this can be found at the following link: www.olg.nsw.gov.au