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, 12 November 2015

Time

2.00pm

 

 

Mark Arnold Signature (3)

Mark Arnold

Director Corporate and Community Services                                                                  I2015/1366

                                                                                                                                    Distributed 09/11/15

 

 


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 20 August 2015

4.    Business Arising From Previous Minutes

5.    Staff Reports

Corporate and Community Services

5.1       Meeting Dates for Finance Advisory Committee for 2016............................................... 4

5.2       Financial Sustainability Plan 2015/16................................................................................ 6

5.3       Accumulated Surplus (Working Funds) and Reserves as at 30 June 2015................... 42

5.4       Budget Review - 1 July 2015 to 30 September 2015..................................................... 52   

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.1

 

 

Staff Reports - Corporate and Community Services

 

Report No. 5.1             Meeting Dates for Finance Advisory Committee for 2016

Directorate:                 Corporate and Community Services

Report Author:           Mark Arnold, Director Corporate and Community Services

File No:                        I2015/1302

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

The purpose of this report is to schedule meeting dates for the Finance Advisory Committee for 2016 and to determine the preferred time to commence the meetings.

  

 

RECOMMENDATION:

That the following dates be adopted for the Finance Advisory Committee's meetings for 2016 and that the meetings commence at 2.00pm.

 

·    Thursday, 18 February 2016

 

·    Thursday, 12 May 2016

 

·    Thursday, 18 August 2016

 

·    Thursday, 10 November 2016.

 

 

 

 


 

Report

 

Proposed Meeting Schedule and Meeting Time

 

The Constitution for the Finance Advisory Committee's states that the Committee will meet as required.

 

The Constitution under Section 2 – Objectives states the purpose of the Committee as being to:

 

“ a) assist in the development of draft budgets

  b) assist in the format of the annual report, and

  c) consider other financial information and matters as they arise

 

In relation to part c) Council has determined that the Finance Advisory Committee should receive  progress reports on the implementation of the Financial Sustainability Project Plan (refer Resolution 13-148) and the Committee has also requested that the Quarterly Budget Review, be presented to the Committee for its consideration, prior to it being presented to Council.

 

To facilitate the presentation of both these reports to the Committee on a quarterly basis, and to allow for the scheduling of other reports, it is recommended that the Committee determine the dates for the required quarterly meetings.

 

Other meetings may need to scheduled, from time to time, during the year to consider the other matters, such as the development of budgets, along with the development of other plans and policies, required by the Integrated Planning and Reporting Framework.  

 

The following dates have been proposed, based on the Finance Advisory Committee meetings, being one week prior to the Ordinary Meetings, at which Council's quarterly budget review will be reported.

 

·    Thursday, 18 February 2016

 

·    Thursday, 12 May 2016

 

·    Thursday, 18 August 2016

 

·    Thursday, 10 November 2016

 

The recommendation also provides for a preferred time to commence the meetings. The recommended time of 2.00pm has been proposed on the basis that all of the proposed dates are the same, as dates proposed for the Internal Audit Committee which commences at 11.00am.

 

Financial Implications

 

Nil

 

Statutory and Policy Compliance Implications

 

The Finance Advisory Committee's Constitution states:

 

·     at section 11 that "Meetings [are] to be held as required."

 

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.2

 

 

Report No. 5.2             Financial Sustainability Plan 2015/16

Directorate:                 Corporate and Community Services

Report Author:           Mark Arnold, Director Corporate and Community Services

File No:                        I2015/1305

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

Council at its Ordinary meeting held on 9 May 2013 adopted a Financial Sustainability Plan (“FSP”) for the 2013/2014 financial period (refer Resolution 13-238).

 

This was the initial FSP developed and adopted by Council, and was prepared in accordance with part 3 of Council Resolution 13-148, to provide a strategic approach to the management of the Financial Sustainability of Council.

 

Resolution 13-148, adopted by the Strategic Planning Committee Resolution at its meeting held on 28 March 2013, provided the framework for the development the FSP.

 

The FSP provides a means for Council to communicate with the community on proposed reforms and actions to manage the financial sustainability of the organisation in the short, medium and long term.

 

This report has been prepared to allow the Finance Advisory Committee to consider the third version of the Financial Sustainability Plan for the 2015/2016 financial period.

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

That Council adopt the Draft Financial Sustainability Plan 2015/2016 (#E2015/71097).

 

Attachments:

 

1        Draft 2015-2016 Financial Sustainability Plan, E2015/71097, page 9  

 

 

 


 

Report

 

This report has been prepared to allow the Finance Advisory Committee to consider the draft Financial Sustainability Plan 2015/2016” (“FSP 2015/2016”).

 

The FSP 2015/16 is the third version of the FSP prepared for consideration by Council.

 

The first version of the FSP, FSP 2013/2014 was adopted by Council on 9 May 2013 via Resolution 13-238.

 

The second version of the FSP, FSP 2014/15 was adopted by Council on 7 August 2014 via Resolution 14-326.

 

During the course of the 2014/15 financial year, work on the implementation of the actions detailed in the individual chapters of the 2014/15 FSP was undertaken, with the outcomes progressively reported to the Finance Advisory Committee on a quarterly basis on 22 August 2013, 13 November 2014, 19 February 2015 and 14 May 2015 with the final report for the 2014/15 financial year submitted to the FAC meeting scheduled for 20 August 2015.

 

The FSP 2015/2016 has been developed using a similar format to that of FSP 2014/2015 but has been amended to reflect the actions undertaken and the impact of the outcomes from these actions on the future strategic management of Council’s financial sustainability.

 

The relevant chapters in the FSP 2015/2016 have been prepared to capture the outcomes from the 2014/15 financial year as well detail what is proposed for the 2015/16 financial year.

 

The Action Plan is a summary of the actions detailed in the FSPP for the following chapter areas:

 

·     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

 

The Action Plan will be completed and included in the 2015/16 FSP when adopted by Council and will be developed from the Actions included in each Chapter. The Action Plan will then be reported to the FAC each quarter starting with the December quarter.

 

A copy of the draft Financial Sustainability Plan 2015/2016” has been included at Attachment 1 to this report.

 

Financial Implications

 

The draft Financial Sustainability Plan 2015/2016” forms part of the strategic approach adopted by Council in managing the short, medium long term sustainability of Council. The Plan needs to be considered in context with the adopted annual Operational Plan, the Quarterly Budget Reviews and the Long Term Financial Plan when Council is considering the financial impacts of specific activities, projects and Services.

 

Part 2 of Resolution 13-148 requires the General Manager to prepare reports on specific elements of sustainability reform package detailed in the FSP, including any rationalisation of Council's property portfolio and the associated establishment of an Infrastructure Renewal Fund. The Infrastructure Renewal Fund was established by Council by Resolution 13-170 and the terms of operation for this Reserve were adopted by Council on 9 May 2013 via Resolution 13-239.

 

In accordance with Part 4 of Resolution 13-148 the General Manager will continue to prepare and submit progress reports on the implementation of the draft Financial Sustainability Plan 2015/2016” to the Council's Finance Committee on a quarterly basis.

 

Statutory and Policy Compliance Implications

 

The FSP has been developed 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.

 

Section 8 of the Local Government 1993 provides (in part) that Council as part of its Charter consider the following principles:

 

·    to exercise community leadership

·    to have regard to the long term and cumulative effects of its decisions

·    to bear in mind that it is the custodian and trustee of public assets and to effectively plan for, account for and manage the assets for which it is responsible

·    to engage in long-term strategic planning on behalf of the local community.

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                       5.2 - Attachment 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BYRON SHIRE COUNCIL

 

 

 

Financial Sustainability Plan

 

2015/16

 

 

 

 

 

 


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 1

 

 

TABLE OF CONTENTS

 

1.        Overview.. 1

2.        The Plan. 4

3.        Expenditure Review.. 6

4.        Revenue Review.. 7

5.        Land Review and Property Development. 9

Strategic Objectives. 9

Land Register 9

Yields. 9

Key Land Sites. 10

Development Options and Timeframes for Key Land Sites. 11

Review of Strategic Options for Land Management 15

Conclusion. 15

6.        Strategic Procurement. 16

7.        Policy and Decision Making. 18

8.        Potential Commercial Opportunities. 21

9.        Volunteerism.. 23

10.     Collaborations and Partnerships. 25

11.     Asset Management. 26

12.     Long Term Financial Planning. 27

13.     Performance Indicators. 29

14.     Summary of 2014/15 Financial Outcomes. 30

15.     Action Implementation Plan. 31

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 1

FINANCIAL SUSTAINABILITY PLAN (FSP) 2015/16

 

 

1.      Overview

 

This is the third Financial Sustainability Plan (“FSP”) prepared by Council and includes the projects and strategies to be progressively implemented and actioned during the 2015/16 Financial Period. The projects and strategies identified have a focus of improving the financial sustainability of Council as an organisation over the short, medium and longer term.

 

Council adopted its first FSP on 9 May 2013 (Resolution 13-238). This FSP was for the 2013/14 Financial Period and during this period the progress achieved in the implementation of the FSP Action Plan was reported quarterly to the Finance Advisory Committee in accordance with Resolution 13-148.

 

Council adopted its second FSP on 7 August 2014 (Resolution 14-326) for the 2014/15 Financial Period, with the progress achieved in the implementation of the FSP Action Plan again reported quarterly to the Finance Advisory Committee.

 

Although the FSP is for a specific financial period the projects and strategies identified in the Plan may need to be developed, implemented and reported on over a number of periods.

 

The FSP is not a requirement of the integrated planning and reporting provisions detailed in the Local Government Act 1993, but it is an adopted Council Plan, prepared by Council to detail projects and strategies that it has identified and developed to improve and maintain its financial sustainability.

 

The FSP is also used by Council to inform the preparation of Byron Shire Council’s 10 Year Long Term Financial Plan (“LTFP”) and the annual review of this Plan.  The LTFP is a component of the Council’s Resourcing Strategy and is a requirement of the integrated planning and reporting framework.

 

The projects and strategies identified in the FSP 2015/16  have been used to inform the scenarios in the LTFP 2015-2025,  which was adopted by Council on 17 September 2015 (Resolution 15-427).

 

The development, implementation and review of the annual FSP and the FSP Action Plan is a key element of this Council’s strong focus on addressing its long term financial sustainability. This strong focus has been developed as part of the Council’s commitment and response to the NSW local government reform process.

 

In 2012 the Minister for Local Government announced that as part of the NSW local government reform process he had:

 

(a)    commissioned the NSW Treasury Corporation (“TCORP”) to undertake a financial assessment of all NSW councils; and

 

(b)    commissioned the Office of Local Government to undertake an assessment of each council’s infrastructure renewal backlog,

 

Byron Shire Council following that announcement worked with both authorities and its external auditors to gain a clear picture of its long term financial sustainability. In March of 2013 TCORP released the Byron Council’s “Financial Assessment, Sustainability and Benchmarking Report”.

 

This Report stated that Council’s financial outlook was described as “weak and deteriorating” with this assessment being based upon successive operating deficits, high debt, and a deteriorating capacity to fund infrastructure maintenance and renewal. 

 

The Report prepared by TCORP provided an assessment of the following key areas:

 

·    The financial capacity of the Council to undertake additional borrowings

·    The long term sustainability of the Council

·    The financial performance of the Council in comparison to a range of similar Councils and measured against prudent benchmarks

 

TCORP at that time prepared a Financial Sustainability Rating (“FSR”) and an Outlook for Council in which it assessed Council as being:

 

·    Financial Sustainability Rating      Weak

·    Outlook                                Negative

The NSW State Government in 2014, as part of the NSW local government reform process and following the release of the TCORP Reports and the Report of NSW Independent Local Government Review Panel, announced the Fit for the Future (“FFF”) program.

Under the FFF program all local government authorities were required to submit a Council Improvement Proposal (“CIP”) by 30 June 2015. The Independent Pricing and Regulatory Tribunal (IPART) was appointed to the role of the “expert panel” and was tasked with assessing the Proposals (CIPs) and reporting to the Office of Local Government with a final assessment report by 16 October 2015.

Council had previously been assessed, as part of the FFF work undertaken by the NSW Independent Local Government Review Panel, as having the “scale” to remain as a stand alone Council, with the “capacity” of a Council to be financially sustainable in the medium to longer term. Council as such was assessed as having the “scale and capacity” to be financially sustainable and this assessment informed the IPART review of the CIP submitted by Council.

The 2013/14 and 2014/15 FSP informed and provided the foundation for the strategies and actions detailed in the CIP submitted by Council. The CIP has in turn informed the strategies and actions detailed in the 2015/16 FSP.

Council in the Report titled “Assessment of Council Fit for the Future Proposals, Local Government – Final Report October 2015”, prepared for the Office of Local Government by IPART was determined as being Fit For the Future.  Council on the basis of the CIP submitted to the OLG was assessed by IPART as having satisfied the financial criteria overall and also each of the three elements of this criteria being sustainability, infrastructure and service management and efficiency.

Based on the IPART assessment of the Council’s CIP and its determination that Council is Fit For the Future, the objective set by Council in both the adopted 2013/14 and 2014/15 Financial Sustainability Project Plans that Council “in line with its stated objectives and the strategies detailed in the Financial Sustainability Project Plan the performance of Council in achieving its stated objectives will be firstly to address the outlook rating and secondly to improve the Financial Sustainability rating”  has been achieved.

The focus of Council will now be on the implementation of the strategies set out in the CIP to ensure the financial sustainability of Council in the medium to long term and to further maintain its Fit For the Future rating.

The CIP set out the five (5) key strategies to be implemented by Council over a five (5) year period to enable it to be able to satisfy the seven (7) Benchmarks established by the OLG for a Council to be assessed as being fit for the future or financially sustainable. The 2015/16 FSP includes the actions from the key CIP Strategies being implemented by Council in the 2015/16 Financial Period. In addition the FSP also sets out a number of other strategies actions that have been identified to enhance and support the overall financial sustainability of the Council.

The key strategies included in the FSP 2015/16 are as follows.

·   The completion of the re-structure of Council’s operations to enable capacity building

·   rationalising Council’s property portfolio and associated investment strategies

·   an accelerated plan for debt reduction

·   investing in Council’s business activities such as caravan parks

·   examining new opportunities for raising additional revenue from Byron’s growing tourist and visitor market

·   increasing revenues from own source revenue activities such as paid parking schemes

·   reducing operational expenditure

·   increased focus on asset management programs and activities

·   reinvestment of additional own source revenues in asset renewal and maintenance programs and works

·   realisation of efficiency savings through strategic procurement initiatives

 

 

 

 

 

 


 

2.      The Plan

 

Objectives

 

The objectives of the Financial Sustainability Plan are as follows:

 

·    improve the financial sustainability of Council

·    address the asset renewal funding gap

·    improve Council’s asset management and maintenance systems and programs

·    retire outstanding debt and progressively increase the capacity of Council to borrow for infrastructure renewal projects

·    identify and realise viable and sustainable commercial opportunities

·    identify opportunities for and achieve cost and waste reductions in operating and/or cost activities of Council

·    identify opportunities for sustainable increases to existing recurrent revenues, and to research, investigate and evaluate opportunities for deriving new, recurrent and sustainable sources of revenue identify and pursue new and recurrent revenue sources including opportunities arising from the strong tourism/visitor market

·    increase resource sharing through collaboration with government agencies and community stakeholders 

·    improve the overall financial performance of Council

 

The Financial Sustainability Plan includes a number of chapters addressing these objectives.

 

Chapters

 

The main areas or chapters of the Plan are:

 

·    Expenditure Review

·    Revenue Review

·    Land Review and Property Development

·    Strategic and Procurement

·    Policy and Decision Making

·    Potential Commercial Opportunities

·    Volunteerism

·    Collaborations and Partnerships

·    Asset Management

·    Long Term Financial Planning

 

The actions proposed by Council being as detailed in each of these areas

 

Performance Criteria

 

The TCORP in its Report titled “Financial Sustainability of New South Wales Local Government Sector released in April 2013” has assessed Council as

 

·       Financial Sustainability Rating            Weak

·       Outlook                                               Negative

 

“Weak” Financial Sustainability Rating is defined as follows:

 

·       A local government with an acceptable capacity to meet its financial commitments in

the short to medium term and a limited capacity in the long term.

 

·       It has a record of reporting moderate to significant operating deficits with a recent

operating deficit being significant. It is unlikely to be able to address its operating

deficits, manage unforseen financial shocks and any adverse changes in its business,

without the need for significant revenue and/or expense adjustments.

 

·       The expense adjustments would result in significant changes to the range of and/or

quality of services offered.

 

·       It may experience difficulty in managing core business risks.

 

and “Negative Outlook” is defined as:

 

·       As a result of a foreseeable event or circumstance occurring, there is the potential for

deterioration in the local government’s capacity to meet its financial commitments (short

and/or long term) and resulting change in its rating. However, it does not necessarily

indicate that a rating change may be forthcoming.

 

Council through the actions that it has implemented from its adopted 2013/14 and 2014/15 FSP has made significant progress in addressing both the Financial Sustainability Rating of “Weak” and the Outlook rating of “Negative”.

 

The IPART assessment of Byron Shire Council (refer page 155 of Assessment of Council Fit for the Future Proposals, Local Government – Final Report October 2015”) as Fit For the Future and that in the CIP submitted by Council that its Plan satisfies the financial criteria overall and also each of the three elements of this criteria being sustainability, infrastructure and service management and efficiency, demonstrates the progress achieved by Council.

 

The CIP includes an assessment of the current performance of Council in the seven (7) Performance Measure/Benchmark indicators developed for the Fit For the Future program and where the Council does not currently a Performance Indicator the strategies to be implement over the next five (5) financial years, to be either meet the mandatory performance indicators or to show or demonstrate significant progress in the non-mandatory performance indicators by the 2019/2020 financial year.

 

Council in the CIP has provided a Plan that details the strategies and actions that will see it achieve six (6) of the seven (7) Performance Indicators, including all of the mandatory indicators by 2019/2020 and show significant improvement in the seventh indicator, being the Infrastructure Backlog Ratio by 2019/2020.

 

Further information is provided in Chapter 13 – Performance Measures  on these performance indicators which it will be using to monitor its progress in achieving its stated objectives during the 2015/16 Financial Year.

 

Council in Chapter 14 has included a summary of the financial outcomes that it achieved during the 2014/15 Financial Year.

 

Council in Chapter 15 – Action Implementation Plan has summarised the actions proposed throughout the Plan and is the template to be used for the quarterly reporting to the Finance Advisory Committee.

 

 

 


 

3.      Expenditure Review

 

This was one of the key strategies identified in the 2013/14 FSP and the 2014/15 FSP and is again a key strategy area in the 2015/16 FSP. This strategy is central to Council achieving the FSP objective to” identify opportunities for and achieve cost and waste reductions in operating and/or cost activities of Council”.

 

During the 2013/14 and 2014/15 Financial Years the General Manager established an Expenditure Review Group consisting of nominated members of staff. The role of the Expenditure Review Group was to review and assess the cost activities of Council to identify areas where expenditure maybe reduced and to make recommendations to the General Manager and the Executive Team on actions to be implemented to reduce costs and wastage, without reducing the capacity of Council in the area of service provision.

 

In the 2015/16 Financial Year the overarching function of the Expenditure Review Committee has been assumed into the Strategic Procurement Steering Committee. The role of the Strategic Procurement Steering Committee is by definition focussed on Strategic Procurement and the actions of this Committee are detailed and discussed further in Chapter 6.

 

The responsibility of the Expenditure Review Group in identifying  opportunities for and to achieve cost and waste reductions in operating and/or cost activities of Council has with the implementation of the new Monthly Management Finance Reporting been delegated to Directors, Managers and responsible staff.

 

The new Monthly Management Reporting requires staff to be responsible for Program budgets and the expenditures incurred in the Program areas during each financial year. The same staff also play an important role in the development of Budgets for the future years as part of the Operational Plan and Budget preparation process.

 

The accountability of Staff for Program area budgets has meant that opportunities or recommendations for efficiencies or cost reduction is driven by the Staff involved in or responsible for the delivery of Programs and who have the best understanding of the activities, services or works. An outcome of this is that the savings or efficiency measures when implemented are owned by staff and are more successful and sustainable.

 

Where savings are identified and realised, the savings will also be reported to the Council through the quarterly budget review process.  Any policy changes proposed as a means of facilitating improved financial outcomes will also be periodically reported to the Council for consideration.

 

Action Implementation Plan

 

 

1.      Recommendations on expenditure savings or efficiency gains identified by responsible staff reported to the Executive Team.

 

2.      Monthly Management Finance Reports provided to the Executive Team.

 

3.      Monthly Management Finance Reports provided to Councillors.

 

4.      Progress reports to the Finance Committee on the implementation of the adopted FSP actions.

 

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

 

6.      Report to Council any recommendations regards policy changes.


 

4.      Revenue Review

 

This was one of the key strategies identified in the adopted 2013/14 FSP and 2014/15 FSP is again a key strategy area in the in the 2015/16 FSP. This strategy is central to Council achieving the FSP objective to “identify opportunities for sustainable increases to existing recurrent revenues, and to research, investigate and evaluate opportunities for deriving new, recurrent and sustainable sources of revenue”.

 

During the 2013/14 and 2014/15 Financial Years the General Manager established a Revenue Review Group consisting of nominated members of staff. The role of the Revenue Review Group was to progressively make recommendations to the General Manager and the Executive Team on opportunities for sustainable increases to existing recurrent revenues, and to research, investigate and evaluate opportunities for deriving new, recurrent and sustainable sources of revenue.

 

The main revenue sources reviewed under the adopted 2013/14 FSP and 2014/15 were:

 

·    paid parking

·    competitive fees and charges regime

·    active management and marketing of Council facilities

·    sponsorship

·    grow capacity to attract government grants

·    identify new own revenue sources

·    review of the restricted funds held by Council

 

The role of the Revenue Review Group will not be continued during the 2014/15 Financial Period as the roles performed by the Group have been either delegated to a dedicated Internal Staff Working Groups such as the Paid Parking Working Group or been delegated to individuals such as Directors, Managers and/or responsible staff. An example of this is the annual review of the fees and charges undertaken and reported to Council as part of the development of Revenue Policy for the next financial year.

 

The main initiatives identified for investigation and review by the organisation during the 2015/116 Financial Period are:

 

·    implementation of a Paid Parking Scheme for Byron Bay

·    to continue the review of adopted fees and charges and to recommend to Council increases or new fees and charges within a competitive fees and charges framework

·    active management and marketing of Council facilities including the Cavanbah Centre

·    to investigate and recommend new sponsorship opportunities

·    examine web site advertising

·    establishment of new fees and charges structures for commercial facilities such as the Tyagarah Airfield

·    continue to investigate further opportunities for Council to improve its revenue recovery and collection systems to improve its cash flows 

·    the management of its investment portfolio to maximise interest returns whilst meeting expenditure commitments

·    investigate, lobby and prepare submissions for grant funding for significant infrastructure projects

 

Internal Staff Working Groups will be required to report to the Executive Team on the progress achieved on the implementation of their specific initiative/s and where appropriate to also report initiatives to the Council’s Finance Committee and/or Council. Any proposed policy changes required to facilitate recommended revenue raising opportunities will also be periodically reported to the Council.

 

Individual staff will report and make recommendations to the Executive Team and/or Finance Committee and Council through a same process.

 

Action Implementation Plan

 

 

1.      Internal Staff Working Groups  to report to the Executive Team on the progress achieved on the implementation of their specific initiative/s .

 

2.      Internal Staff Working Groups/ staff to report to the Executive Team any proposed opportunities for deriving new/additional revenue.

 

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

 

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

 

5.      Prepare submissions and lobby for grant funding for significant infrastructure projects.

 

 

 


 

5.      Land Review and Property Development

 

The 2013/14 FSP activated land and property development as a key option to improve the long term financial sustainability of Council.

 

This element of the Plan seeks to identify potential strategic objectives and options for the holistic management of land holdings and identify a potential cash flow for Council from land/ asset development and sales that can be deployed to achieve those objectives.

 

Significant progress has been made in accordance with the 2014/15 plan, including:

 

·    Roundhouse – completion of the land reclassification process to enable sale of the lots.

·    South Byron STP – infrastructure demolition contract awarded and works commenced.

·    Lot 12 Bayshore – REF completed, tree removal DA approved and site works commenced. Major restoration works will be completed in 2015/16.

·    Station St – DA lodged and approved. S96 seeking changes prepared and lodged.

·    Lot 22 Mullum – strategic assessment completed.

·    Vallances Rd – purchase of Crown Rd to increase options.

 

The Plan continues to focus on key sites which it is believed provide Council the greatest opportunity. A program of action has been developed over the next two financial years and is presented at section 5.5.

 

Strategic Objectives

 

The following strategic objectives have informed the analysis in the Plan and are recommended to guide decision making on Council’s key operational land holdings.

 

·    demonstrate that Council's land holdings are a key opportunity to assist with long term financial sustainability

 

·    maximise the financial return on the investment from Council's operational land holdings

 

·    utilise the equity in Council's land holdings to create revenue for key asset maintenance and renewal programs

 

·    consider Council's land holdings as  a portfolio of properties to be managed collectively to promote financial sustainability

 

·    establish a funding source and capacity to develop the potential of Council's operational land holdings.

 

Land Register

 

Council’s Land Registers were updated in 2011 and reported to Council in December 2011.

 

There are a total of 101 individual operational land entries. The majority of land parcels could be described as of a minor nature. The Plan seeks to identify and address key sites.

 

Yields

 

Land valuation information has been obtained in relation to some key sites as a result of reporting matters to Council. Where this information is available it has been used in the Plan.

 

The yield assessments presented in this report are broad estimates only that can be refined as the development of any given property progresses.

 

Key Land Sites

 

The 2015/16 Plan continues to focus on the key sites identified in the 2013/14 FSPP and an additional initiative involving the sale of surplus small parcels of land has been added. These sites provide Council with the greatest opportunity for development and sale commensurate with available resources.

 

The key properties identified in this Plan are owned by the four Fund areas, General, Water, Sewer and Waste.

 

General Fund

 

·    Roundhouse, Ocean Shores

 

·    Lot 12 Bayshore Drive, Byron Bay

 

·    Station Street, Mullumbimby

 

·    Yaran Road, Tyagarah part Lot 49/881232 (adjacent to Tyagarah Aerodrome – northern side)

 

·    Lot 22, Mullumbimby

 

·    Bayshore Drive Works Depot, Byron Bay (Lot 102, DP1087996)

 

·    Various small surplus land parcels (new)

 

Water Fund

 

·  Fletcher Street Cottage / Old Library, Byron Bay

 

Sewer Fund

 

·    Old South Byron STP site

 

·    Old Brunswick Heads STP site

 

·    Brunswick Valley STP, Vallances Road, Mullumbimby (including two houses)

 

·    Bangalow STP, Dudgeons Lane, Bangalow

 

·    Lot 4, Mill Street, Mullumbimby

 

Waste

 

·    Lots 3 & 29 Manse Road, Myocum (including houses)

 

·    Lot 15 (including the 'Bower Cottage') Dingo Lane, Myocum

 

·    Lot 16 Dingo Lane, Myocum

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           5.2 - Attachment 1

Development Options and Timeframes for Key Land Sites

 

Key Land Site

Assumed Option

Approx Yield

2013/2014

2014/2015

2015/2016

2016/2017

2017/2018

General Fund

 

 

 

 

 

 

 

5.1 Roundhouse

Subdivision and sale

(eleven lots)

$2,000,000

Subdivision works completed

Land reclassification process.

Complete sale.

 

 

5.2 Lot 12 Bayshore

Sale post cleanup

Unknown due to large clean up costs, however industrial land of this scale has increased in value.

Amalgamation of lots 1&2 completed.

Clean up assessment completed.

Voluntary plan of management (VPM), EIS, DA and commence clean up contract.

Complete clean up contract and finalize land contamination status.

Evaluation and possible sale

 

5.3 Old Telstra Depot Site

Sale following rezoning

$500,000

Council has resolved to sell by process detailed in the Council resolution.

Completed Sale – proceeds restricted and used for preparation and construction of the Station St subdivision.

 

 

 

5.4 Station Street

 

 

 

(* Dependent upon on sale of Telstra site)

Subdivision and sale (4 lots)

$800,000 (yield will be influenced by the scope of works necessary in Station St for stormwater, kerb & gutter, tree removal etc)

Planning, investigation and DA development

Subdivision approval and preparation of S96 to vary the consent conditions.

Subject to S96 approval and viability, complete the subdivision.

Complete Sale

 

5.5 Yaran Road Tyagarah Airfield

Subdivision and sale

To be determined

 

Investigate flood and environmental options for  subdivision (from Aerodrome) and development options

 

DA completion and approval. Commercial assessment and potential works.

Sale or commercial lease

 

5.6 Lot 22 Mullum

 

(New)

 

(* Dependent upon on sale of Telstra site and Station Street)

Subdivision and sale

To be determined

Council workshop held regarding options, including a presentation by SASTHA on affordable housing.

Investigation, flood assessment, and options development.

Planning requirements and DA development

DA approval and commence works.

Complete works.

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

 

(New)

Sale

To be determined

 

Preliminary investigation undertaken and feasibility study prepared on the potential re-location of the Works Depot to an alternate site and sale of the current site.

Progress the assessment and optimization of depot based services.

Reassess the feasibility and options for a potential re-location.

Implement chosen option.

 

 

 

 

 

 

 

 

Water Fund

 

 

 

 

 

 

 

5.8 Fletcher St

Rental and development

Sale of part of a mixed development could yield a valuable long term asset with associated rental income.

Rental agreements established with the Salvation Army and Golden Breed.

Planning, investigation and assessment around options/concept plans for site, redevelopment

Business case and resolve preferred development model.

 DA preparation and approval.

Development implementation.

Finalize development.

 

 

 

 

 

 

 

 

Sewer Fund

 

 

 

 

 

 

 

5.9 Laboratory

Sale post lease

$600,000

Sold and proceeds used to part repay and refinance sewerage loan no 56.

 

 

 

 

5.10 South Byron STP

Sale post rezoning and DCP or retention as a tourism facility.

Sale $3,000,000

 

Annual tourism return yet to be determined.

Detailed site contamination and remediation action plan completed.

Infrastructure demolition.

Future option determination.

Start remediation.

Start rezoning.

Future option determination.

Start remediation.

Start rezoning.

 

Complete rezoning.

Finalize remediation.

Commence implementation of chosen option.

Complete implementation.

5.11 Brunswick Heads STP

Remediation and open space

This site represents land that could be used for community purposes post remediation which will cost $1.5m

Commenced remediation assessment.

Complete remediation assessment.

Start demolition and remediation.

Complete remediation. Create chosen open space option subject to funding.

 

5.12 Brunswick Valley STP, Vallances Rd.

Sale post rezoning

$1,800,000

Planning commenced. Liaison with Lands Dept.

Complete crown road purchase.

Complete rural settlement strategy review.

 

Assess development options.

Implement chosen option

5.13 Bangalow STP

Sale post rezoning

$500,000

Pending

Pending

Complete rural settlement strategy.

Assess development options.

Subdivision DA.

Commence works

5.14 Lot 4, Mill St

Sale

$200,000

Completed access works

Complete options review, including potential consolidation with the Vallances Rd property.

Complete rural settlement strategy.

Assess development options.

Implement chosen option eg new use, consolidation or immediate sale.

5.15 Various small surplus land parcels

Sale

To be determined

 

 

Commence sale program.

Continue program if viable.

Complete rural settlement strategy.

 

 

 

 

 

 

 

 

Waste Fund

 

 

 

 

 

 

 

5.16 Lots 3 & 29  Manse Road

Sale

$1,000,000

Implemented disposal contract. Landfilling ceased.

Complete Quarry Landfill DA.

Complete assessment of Quarry Landfill/ resource recovery options.

Implement chosen option.

Sell Lot 3 & 29 and use funds to pay down loans to reduce debt servicing costs.

5.17 Lot 15 Dingo Lane Myocum

Retained

NA

Quarry Landfill EIS completed.

Quarry DA assessment

Complete assessment of Quarry Landfill/ resource recovery options.

Assess retention and sale options Potential sale.

Potential sale

5.18 Lot 16 Dingo Lane Myocum

Sale

$1,200,000

Quarry Landfill EIS completed.

Quarry DA assessment.

Complete assessment of Quarry Landfill/ resource recovery options.

Assess retention and sale options Potential sale.

Potential sale


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 1

 

Review of Strategic Options for Land Management

 

The key properties identified in this Plan are owned by the four Fund areas, General, Water, Sewer and Waste. It is clear there are similarities but also differences between the circumstances of each Fund. As a result the approach and options for property development and asset sales will be different in each area.

 

The General Fund has limited capacity to borrow, a budget always under pressure to be in surplus, and a significant maintenance backlog for key assets. General Fund land assets in accordance with strategies detailed in the adopted CIP will be utilised to address in part these pressures. It is important to avoid a ‘fire sale’ approach but in cases where strategic land sale does occur, the sale proceeds should be (unless Council directs otherwise – e.g. to retire debt, directed to the Property Development Reserve, etc) directed to a newly created Infrastructure Renewal Reserve. Where funds are directed to the Property Development Reserve these funds will be used to facilitate any necessary expenditure required to make other potential land sites identified for sale to be sold or facilitate funding to develop retained properties so as to generate a recurrent income stream for Council.  Other options include (1) for the principal in the infrastructure reserve not to be utilised but interest generated be directed as additional funding towards infrastructure maintenance or renewal; and (2) for funds accumulated in the Infrastructure Renewal Reserve to be utilised as matching funds to release Section 94 funds that are currently underutilised for infrastructure projects due to the non availability of “matching” General Fund sources. The management of this reserve could also be matched with designated investments so that the interest specifically generated by this reserve is allocated to it.

 

The Water Fund has a low debt servicing ratio, significant reserves and a funded capital works program going forward. Service pricing charges are at median levels. The Fletcher St property was opportunistically purchased using the Water Fund as an available source of funds rather than for any particular strategic outcomes associated with the Water Fund. The property has significant value and the opportunities for development and the need to realise financial benefits is far more aligned with the General Fund. As such, the potential transfer/ purchase of the property from the Water Fund to the General Fund remains an important consideration.

 

The Sewer Fund has a high debt servicing ratio (now trending downward) as a result of loans used for the completion of the major program of sewerage system augmentations. As a result service pricing charges are comparatively high and reserves have been depleted. The sale of properties could assist with the objective of bringing service pricing charges progressively back to a median value.

 

The Waste Reserves have been under pressure due to a range of reasons. Sale of the available land holdings at a prudent time will assist with paying down debt and alleviating the cost pressure of debt servicing charges.

 

Conclusion

 

The long term financial sustainability of Byron Shire Council is fundamental to the continuance of the local government area and the organisation. There is an imperative in focussing with renewed energy on the opportunity afforded to Council through its operational land holdings. The available land holdings, particularly in the General Fund, are not extensive and as such the stewardship of these assets is critical in creating a sustained revenue stream for key asset maintenance and renewal programs.

 

Progression of future options for the key strategic land holdings identified in this Plan will require prioritisation and variously need an investment of financial and staff resources. 

 

 


 

6.      Strategic Procurement

 

Procurement has a powerful impact on the bottom line of organisations engaged in the process of purchasing and the challenge is to extract maximum benefit to those activities.  Strategic procurement is the development of, and continuous review and improvement to, a plan and framework that ensures maximum procurement benefit and ongoing compatibility with the organisation’s other deliverables and objectives. To demonstrate the importance of Strategic Procurement, Council could achieve between 0.5% and 1% savings through its procurement spend then this could have the ability for Council to save between $180,000 and $390,000 per annum.  Improvements already delivered under the Strategic Procurement Roadmap are yielding expenditure savings, and the adopted Council Improvement Plan anticipates achieving the 1% ongoing from 2016/17 financial year.

 

The benefits of taking a strategic approach to procurement are:

 

·    Direct cost savings through lower prices paid. 

·    Increased value added benefits (such as other social, economic, and environmental objectives)

·    Savings achieved through improved systems and process efficiencies (including new technologies)

 

To leverage the maximum benefit from procurement activities, Council recently completed a strategic procurement review and implement the first 12-months of improvements:

 

·    Review Council purchases and how much it costs to ensure best possible pricing can be achieved.

·    Identify risks for Council associated with procurement activity to ensure they are managed appropriately.

·    Identify Council’s strategic objectives to identify priority areas for maximum value-add benefits (economic, social, and environmental).

·    Council’s procurement systems, processes, methodologies, and resourcing to identify priority areas for efficiency and productivity gains.

·    Established Strategic Procurement Steering committee

·    Adopted the centre-led procurement model and established roles and responsibilities

·    Recruited the new Strategic Procurement Coordinator

·    Participating in the NOROC Regional Procurement initiatives

·    Implemented the first 6-months of strategic procurement improvement initiatives

 

The strategic procurement review provided a series of further recommendations, the next 12 months key actions for 2015/16 are set out below:

 

Action Implementation Plan

 

1.      Develop contracts management guidelines and processes

2.      Develop annual procurement plan

3.      Develop and implement priority contracts program

4.      Detailed spend analysis and reporting

5.      Implement on-going procurement and contract management training program

6.      Implement targeted program to reduce invoice numbers and transaction costs

7.      Develop social and sustainable procurement and economic development plan

8.      Review purchase to pay process

9.      Implement purchasing cards for low value high volumed transactions

7.      Policy and Decision Making

 

The Policy and Decision making of the Council can have short, medium and long financial implications on the sustainability of Council.

 

Council during its current term has taken and adopted a number of measures to assist and guide it in its policy and decision making process. In adopting these measures the Council acknowledges and recognises that not all decisions can be made based solely on achieving the objective of improving the financial sustainability of Council.

 

Council in its policy and decision making processes also gives consideration to other adopted infrastructure, economic, environment, society and cultural objectives.

 

For the purpose of achieving the objective of improving the financial sustainability of Council, the following measures are used or have been adopted by Council.

 

Financial Modelling and Reporting

 

Council under the Integrated Planning and Reporting Framework is required as part of the Resourcing Strategy, developed to support the implementation of the adopted Delivery Program and annual Operational Plan, to prepare a Long Term Financial Plan (“LTFP”) (10 years), Asset Management Plan (“AMP”) (10 years) and Work Force Plan (4 years). Further details on both the LTFP and AMP are provided in later Chapters of the FSPP.

 

The Long Term Financial Plan (LTFP) is reviewed and adopted by Council each year is prepared based on assumptions and predictions over a longer period of ten years.

 

The LTFP is used to guide Council in assessing the long and medium term implications of its decision and policy making processes and provides Council with information on the projected long term financial sustainability of Council as an organisation. 

 

Council under the Integrated Planning and Reporting Framework is also required in its annual Statement of Revenue Policy to include its Estimates of Income and Expenditure for the following financial period (refer clause 201(1)(a) LGR 2005). This is the annual budget prepared and adopted by Council.

 

The Budget prepared by Council each year also includes a projection of the estimates of income and expenditure over a further three year period or the period of the four year Delivery Program. This provides Council with information on the medium term financial sustainability of Council as an organisation.

 

The adopted annual budget is used to guide Council in assessing the short term implications of its decision and policy making processes. 

 

Council during each Financial Year is required by clause 203 LGR 2005 to review progressive performance against these plans not later than two months after the end of each quarter (except for the June quarter). This process is referred to as the Quarterly Budget Review (QBR), and includes by reference to the estimates of Income and Expenditure in adopted in the Statement of Revenue (budget), details the revised estimate of income and expenditure for the remainder of that financial year.

 

The QBR provides Council with information on the short term financial sustainability of Council as an organisation during each financial year and informs both Council and the Community of the revenue and expenditure trends against adopted Budget.  Each QBR is reported firstly to the Finance Advisory Committee (“FAC”) and then Council. The reports to both the FAC and Council include recommendations from Management on required budget adjustments. The report to Council is also informed by any recommendations from the FAC on required budget adjustments.

 

Council at its Ordinary meeting held on 19 September 2013 resolved that it receive a monthly Finance Report for a trial period of twelve (12) months. Council at the conclusion of the trial period amended the template of the Finance Report and resolved that Monthly Finance report prepared in accordance with adopted  template be distributed to Councillor on a monthly basis.

 

The Monthly Finance Report is used to guide Council in assessing the short term implications of its decision and policy making processes. 

 

Council Reports

 

Each Report to Council includes a section on the financial implications of the actions, activities, services or programs dealt with in the Report or the Notice of Motion being considered.

 

The information detailed in the financial implication section of a Council Report provides Council with information on the impact of the actions, activities, services or programs dealt with in the Report, with a budget area.

 

Policy Framework

 

Council through its regular policy and decision making processes can potentially impact on the long term financial sustainability of the organisation so it is critical that the financial implications of each decision is considered carefully on the basis of its potential short, medium and long term impacts. The Council’s Long Term Financial Planning tools can now be used for effective financial modelling of potential council decisions and Council is encouraged to avail itself of this resource prior to making key decisions that have financial implications.

 

Council is a politically based community organisation and as such councillors are regularly pressured by constituents to support various community initiatives which often have unforseen, (unbudgeted) and recurrent financial implications. While the desire to satisfy changing community expectations is natural and understandable, the Community Strategic Plan represents a compact between the Council and its constituency and represents a discipline in decision-making by the Council. It is important that Council recognises that it can no longer be “all things to all people” and maintains the discipline inherent within this community compact.

 

Council at its Ordinary meeting held on 18 April 2013 adopted a policy framework to assist it and the FAC to address the short term financial sustainability of the Council during the 2012/13 Financial Year.

 

This framework was also applied to the 2013/14  and 2014/15 Financial Years and will, with the adoption of the 2015/16 FSP, also be applied to the 2015/16 Financial Year.

 

The Framework used by Council in its Decision and Policy Making processes to assess and consider the financial implications of these processes is as follows:

 

·    That Council not pass any resolutions authorising new or additional expenditures of money unless an available funding source is identified and quarantined for that purpose.

 

In addition Council has determined that:

 

·    That  any general revenue funded allocated expenditure, not expended in a financial year, will NOT be automatically carried over to the next financial year before it is reviewed and priorities established.

 

·    That in March each year that staff with budget programs in the General Fund will consider the current financial position of each of their budget programs in terms of the remainder of the financial year and that any existing expenditure items funded from general revenue (that is items not funded by reserves, water, sewer or waste revenues or specific purpose grants and contributions) not spent, be reviewed and where budgets have not been committed and do not need to be expedited, that these budgets be identified as expenditure savings.

 

In relation to the first dot point above, staff will be required, after the end of each Financial Year to submit a bid for any budgets to be carried over, and these bids will be reported to the FAC and then Council for consideration.

 

Policy Review

 

Council has developed over time numerous policies to establish direction and assist in implementation of operational decisions through delegation.  Some Council policies could be considered to include wording that is restrictive and may not provide for timely decision making on the use of public land or for the day to day operations.  It is proposed that those policies not already reviewed, be reviewed during the 2015/16 Financial Year to provide more enabling wording and guidelines to then allow more timely operational decision making through delegation.

 

Action Implementation Plan

 

 

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

 

2.      That any unspent budget votes from the 2014/15 budget recommended to be carried over to the 2015/16 Budget be reported to Council following the end of the 2014/15 Financial Year.

 

3.      That the monthly Finance Report be distributed to Councillors on a monthly basis.

 

4.      That polices that contain wording or provisions that are considered to be restrictive be reviewed to incorporate enabling wording and guidelines for Council’s consideration and approval.

 

 


 

8.      Potential Commercial Opportunities

 

Council from time to time will be presented with the ability to consider a project that has a potential commercial opportunity that it could investigate and develop. Council is in the position to consider, investigate and development potential commercial opportunities both in its role as a Council and also as the Reserve Trust Manager for Crown Reserves that it controls and manages on behalf of the Crown.

 

These opportunities may include the development of current commercial activities such as the operation of the Council owned and managed Holiday Parks or a new commercial activity. New commercial activities may be associated with the functions that Council currently carries out such as car parking or it might be associated with a new functional area.

 

The Local Government Act 1993 imposes a framework on Councils regarding its involvement in potential commercial activities. The Office of Local Government has also issued Guidelines under Section 23A to provide Council’s with guidance on areas such Public Private Partnerships, Tendering and Capital Expenditure.

 

Council under the Local Government Act and the issued Guidelines is required, as part of its governance framework, to consider any proposal with regard to the cost, benefits and business risk to the Council and the wider community. The first consideration of Council in regard to any potential commercial activity is to whether it is within the power of the Council to participate.

 

Council to date since being elected in September 2012 has identified a number of potential commercial opportunities and ventures that it could consider in the future. These include:

 

·       Development of Byron Bay Swimming Pool/Café

·       Development of its Holiday Parks (First Sun and Suffolk Park)

·       Development of a Multi-level car park (Byron)

·       Foreshore public amenities combined with commercial kiosk/café

·       Redevelopment of the Railway park Precinct including the Old Stationmasters Cottage (Byron Bay Visitor Information Centre)

·       Redevelopment of the Old Fletcher Street Library Building

·       Redevelopment of the Byron Bay Surf Club

·       Future management and development of the Tyagarah Aerodrome

 

The commercial opportunities and ventures identified are located on both Council owned and managed Crown Land.

 

Council at an Ordinary meeting held on 21 November 2013 resolved (13-613) to fund and proceed with the development of a Masterplan for the Byron Bay Town Centre. A number of the commercial opportunities and ventures identified fall within the Masterplan area and the preliminary investigation or consideration of these projects will form part of the masterplanning process.

 

Following the Masterplan process, which has involved and included extensive community consultation, further detailed project investigation maybe required for these projects or of other opportunities and ventures identified during the process.

 

Other projects fall within separate studies or reports being prepared for Council by external Consultants. These projects include the future management and development of the Tyagarah Airfield.

 

Council at its Ordinary meeting held on 27 February 2014 resolved to commence the process to reclassify part of Lot 100 DP 1023737, being the land on which the Suffolk Park Beachfront Holiday Park. The reclassification process is a pre-requisite to the preparation of a Plan Management of the Holiday Park and development of Holiday Park in accordance with the adopted Plan of Management.

 

Management will progressively prepare and submit to Council reports on potential commercial opportunities and ventures. The reports will enable Council to consider any commercial opportunity in terms of its responsibility to the community for the prudent management of community assets and finances. Reports will need to identify the scope of any project and/or venture along with the estimated project costs including feasibility studies, probity planning, design costs and scoping costs.

 

The business case for and risk associated with any project and/or venture will also need to be identified.

 

Council in considering any proposal will need to ensure that the proposal is commercially sound and meets the Community’s needs and objectives as detailed in the Community Strategic Plan and also the Council’s objectives as detailed in the Delivery Program and the Operational Plan.

 

Action Implementation Plan

 

 

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.  

 

2.      Management to prepare and submit to Council reports on any potential Commercial opportunities and ventures when identified for any other specific projects, such as:  

        

         a)       Future management and development of the Tyagarah Aerodrome

         b)       Development of Byron Bay Swimming Pool/Café

         c)       Redevelopment of the Old Fletcher Street Library Building

 

 

 

 


 

9.      Volunteerism

 

The Byron Shire Local Government area has a high participant rate for community members in the area of volunteerism. Volunteerism is an effective way for community members to be involved in their community and for the community to assist Council in the delivery of services and activities in financially sustainable way.

 

Council has for many years managed a number of community facilities and hall through Committees established under section 355 of the Local Government Act 1993. The members of the S355 Committees are appointed by Council from nominations received from interested community persons who volunteer their time to assist Council with the management of the community facility or hall.

 

The delivery of this function or service to the community, by this means, ensures local ownership and pride in the facility or hall and also in its operation and maintenance.

 

Council, based on the success of this relationship and the financial and social benefits derived by Council and the community, has identified other areas for the community to assist Council in the delivery of services and activities in financially sustainable way.

 

To pursue these areas further, Council has developed an enabling ‘Volunteering with Council’ Policy and guidelines for Council staff to manage and encourage volunteer projects.

 

Since its election in September 2012, Council has identified a number of actions to considered in the future, including:

 

·       Address and overcome the current risk averse approach

·       Create volunteer network support and resourcing capacity

·       Nurture and promote social enterprises

·       Develop small scale “neighbourhood” infrastructure projects suitable for local volunteer groups

 

In the past few years Council has introduced a number of community volunteer projects including Beautify Byron Day (2013 & 2014), Beautify Bangalow (2015) as well as the establishment of the Byron Greeters and a volunteer register.

 

Council in the 2014/15 Financial Year, in addition to the traditional relationships that it has fostered over a number of years with S355 Committees, Landcare and Dunecare groups along with other volunteer groups on environmental and sustainability projects, is seeking to further develop the  Beautify Byron Day and to also develop a number of “adopt a” projects such as:-

 

·    Adopt a road

·    Adopt a garden bed

·    Adopt a park

 

Management will progressively prepare and submit to Council reports on these issues and opportunities.

 


Action Implementation Plan

 

1.      Council to hold a volunteer recognition event, and two networking/information sessions for Section 355 Management Committees.

 

2.      Council will update, promote and increase the number of participants on the Volunteer Register.

 

3.      Management will progressively prepare and submit to Council reports on the areas of volunteerism.

 

 

 


 

10.    Collaborations and Partnerships

 

This area is important to the short, medium and long term financial sustainability of Council. The importance of Council pursuing both collaborations and partnerships has been highlighted by the recommendations of the Independent Local Government Review Panel in its consultation discussion paper in April 2013 “Future Directions for NSW Local Government – Twenty Essential Steps” for the North Coast Councils.

 

In the discussion paper the Independent Local Government Review Panel is recommending that a new regional  Joint Organisation (“JO”)  be established including all NOROC Councils that will undertake a broad range of strategic functions to support the member Councils.

 

Council to date since being elected in September 2012 has not resolved to investigate any potential opportunities for a collaboration or partnership but has identified number areas that it could consider in the future. These areas include:

 

·       Establishment of a Joint Organisation

·       Shared services

·       Joint strategic procurement

·       Collaborate with government agencies and community organisations in delivering shared projects and outcomes

·       Support local events and grow “user pays” visitor economy

·       Explore shared regional strategic planning opportunities

·       Activate collaborative arrangements outlined in and supported by Council’s MOU with Southern Cross University

 

Initiatives flowing from the NSW Local Government Reform process support improved collaboration between councils and regional organisations. In an era where resources are increasingly scarce it makes good sense to work together with government agencies, regional organisations and community stakeholders to deliver shared outcomes which give communities a better “bang for their buck” and eradicate unnecessary duplication and waste.

 

It is important though for Council to document these actions as part of the Financial Sustainability Project Plan, to not only place these actions on the record, but to also to put itself in a position to pursue any opportunities that may arise as the LG landscape changes.

 

Council during the 2014/15 Financial Year continued to investigate and implement where feasible a number of Agreements or Memorandums of Understanding with other Councils and Organisations. These Agreements were prepared to assist with the sharing of services, assets or resources.

 

Management will progressively prepare and submit to Council reports on any opportunities for a collaborative or partnership relationship.

 

Action Implementation Plan

 

 

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

 

 

 


11.    Asset Management

 

Council has an adopted Asset Management Policy (E2015/27107)

 

Council has an adopted Asset Management Plan (#DM1252114) and this document will be updated in 2015/16.

 

Byron Shire Council is the custodian of over $800 million of community assets which enable council to provide services to the community. These include roads, drains, bridges, footpaths, public buildings, recreational facilities, parks, gardens, water, sewerage and waste assets. A large number of Council’s services to the community are delivered through infrastructure assets.

 

The DLG Planning and Reporting Manual states, “as custodian, Council is responsible for effectively accounting for and managing these assets and having regard for the long term and cumulative effects of its decisions. This is a core function of councils and is reflected in the Charter in 28 of the Act”.

 

Asset management is defined in the International Infrastructure Management Manual (IIMM) as, “ the systematic and coordinated activities and practices of an organization to optimally and sustainably deliver on its objectives through the cost effective lifecycle management of assets”.

 

The IIMM sets out how an organization can develop its asset management capacity and capability through increasing maturity levels from a minimum standard to core, then intermediate and finally advanced. Council is continuing to develop its asset management capacity and capability. This will allow Council to increasingly address the growing drivers from all levels of government to improve asset management and thereby provide continuity of services to the community on a sustainable basis. 

 

Council has addressed the requirements of the NSW Fit for Future Program for infrastructure management and asset management in the Council Improvement Plan (E2015/38307)

 

Council is also addressing the requirements of the NSW Local Government Asset Management audit preparedness assessment.

 

The following actions in 2015/16 support achievement of these outcomes.

 

Action Implementation Plan

 

1.

Prepare an infrastructure report for the Fit for Future program

Special Schedule 7 report, complete

2.

Revalue community land, other assets and land improvements to support Fit for Future reporting

Valuations, completed by 30 June 2016

3.

Implement the newly completed asset service plans to address Fit for Future program priorities

Service plans implementation, progressing

4.

Improve the level of asset information to better assist decision making and focus the deployment of asset management resources

Critical asset data improved, = high level of confidence

5.

Develop capital investment strategies and plans that target sustainability and our Fit for Future program priorities

10 year capital plans aligned with Fit for the Future priorities, compete

6.

Creatively develop new and revised funding strategies for better community outcomes

Development charging plans reflect community priorities, complete

7.

Engage with the community on the challenges of asset management

Community Infrastructure Advisory Committee meetings, quarterly


 

12.    Long Term Financial Planning

 

The need to develop a Long Term Financial Plan (LTFP) is a requirement of Section 403(2) of the Local Government Act 1993.

 

Council is required under the Integrated Planning and Reporting framework to review its LTFP annually.

 

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, Delivery Program and Operational 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 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 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.

 

Council at its Ordinary meeting held on 17 September 2015 resolved via Resolution 15-427:

 

‘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’.

 

The 2015-2025 Long Term Financial Plan has also been updated to include the Fit for the Future benchmarks as performance indicators and is reflective of the five scenarios lodged by Council to the Independent Pricing and Regulatory Tribunal (IPART) as part of Council’s endorsed Council Improvement Proposal (CIP).

 

The 2015/2016 Budget Estimates were adopted by Council form the base year of the 2015-2025 Long Term Financial Plan but it only contains information relevant to the General Fund.

 

During the course of the 2015/2016 financial year, the Long Term Financial Plan 2015-2025 will be updated and reported to the Finance Committee to include the consolidation of Water and Sewerage business plan information once received. 

 

In addition it is proposed to develop the 2016-2026 Long Term Financial Plan as part of the 2016/2017 Operational Plan process with adoption anticipated at the time Council adopts the 2016/2017 Operational Plan prior to 30 June 2016.

 

Action Implementation Plan

 

 

1.      Update the 2015-2025 Long Term Financial Plan with Water and Sewerage business plan information during the 2015/2016 financial year.

 

2.      Develop the 2016-2026 Long Term Financial Plan in conjunction with the 2016/2017 Operational Plan and report to the Finance Advisory Committee/Council prior to 30 June 2016.

 

 


 

13.    Performance Indicators

 

The success of any plan after the initial and ongoing implementation needs to be measured.  This is also true for Council’s Financial Sustainability Project Plan (FSSP).  To do this, Council needs to be able to identify what improvements have been made to the overall financial sustainability of Council, over time through the implementation of the strategies/actions contained in the FSSP.

 

Performance indicators are a tool to demonstrate the achievement of the FSPP strategies/actions. 

 

The outcomes from the implementation of the FSPP 2014/15 have been identified in the earlier chapters of this document with the financial outcomes summarised in Chapter 14 - Summary of 2014/15 Financial Outcomes. The financial outcomes for the FSPP 2015/16 will be measured as follows:

 

·    Through quarterly reporting to the Finance Advisory Committee (FAC) and Council on FSPP outcomes.

 

·    The recognition of new or increased revenues and / or with expenditure savings (financial outcomes) will be recognised through the QBR process. Structural changes to both revenue sources and expenditure will be updated in the base budget during the preparation of the 2016/17 Budget. The financial outcomes delivered by the FSP will then flow into the Council’s Long Term Financial Plan.

 

·    Comparison and assessment of the Note 13 and Special Schedule 7 performance ratios disclosed annually in Council’s audited financial statements which should indicate a trend improvement from FSPP outcomes.

 

·    Ongoing monitoring of the seven benchmarks established for the NSW Government ‘Fit for the Future’ regime to ensure Council maintains it’s ‘Fit’ Outcome.

 

Action Implementation Plan

 

 

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

 

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

 

3.      Structural changes to both revenue sources and expenditure will be updated in the base budget during the preparation of the 2016/17 Budget.

 

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.

 

5.      Assessment of the Note 13 and Special Schedule 7 performance ratios disclosed annually in Council’s audited financial statements which should indicate a trend improvement from FSSP outcomes.

 

6.      Assessment of the seven ‘Fit for Future’ benchmarks on an ongoing basis to ensure Council maintains the ‘Fit’ outcome.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           5.2 - Attachment 1

 

14.    Summary of 2014/15 Financial Outcomes

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                     5.2 - Attachment 1

 

15.    Action Implementation Plan

 

The Action Implementation Plan is annexed to this Plan, see E2015/XXXXX.

 

Note:

 

The Action Implementation Plan will be prepared following the adoption of the 2015/16 FSPP and include the Actions detailed in the adopted Plan for each Chapter.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.3

 

 

Report No. 5.3             Accumulated Surplus (Working Funds) and Reserves as at 30 June 2015

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

File No:                        I2015/1354

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

This report has been prepared for the Finance Advisory Committee to note the Reserve balances and recommend to Council adoption of the Accumulated Surplus (Working Funds) result as at 30 June 2015.

 

Council at its Ordinary Meeting held 29 October 2015 through resolution 15-564 adopted the 2014/2015 Financial Statements that incorporate the results indicated in this report.

  

 

RECOMMENDATION:

1.       That the Reserve balances as at 30 June 2015 be noted by the Finance Advisory Committee.

 

2.       That the Finance Advisory Committee recommend to Council the adoption of the Accumulated Surplus (Working Funds) result for the General Fund of $919,100 as at 30 June 2015.

 

Attachments:

 

1        2014/2015 Accumulated Surplus (Working Funds), E2015/71430, page 47  

2        2014/2015 Reserves Schedule, E2015/71431, page 48  

 

 


 

Report

 

This report has been prepared for the Finance Advisory Committee to note the Reserve balances and recommend to Council adoption of the Accumulated Surplus (Working Funds) result as at 30 June 2015.

 

Council at its Ordinary Meeting held 29 October 2015 through resolution 15-564 adopted the 2014/2015 Financial Statements that incorporate the results indicated in this report.

 

Liquidity in terms of Council being able to fulfil its short term financial commitments is critical and an indicator in the short term of Council’s financial health.  There is no set indicator that is absolutely used to identify the liquidity position of a Council, however there are the following indicators:

 

·    Unrestricted Cash – this represents the total available cash and investments Council has, that is not restricted for any reason either by legislation, condition or Council resolution.  This amount is determined at 30 June each year and disclosed at note 6(c) of Council’s annual Financial Statements.

 

·    Unrestricted Current Ratio – this ratio assesses the short term adequacy of working capital.  It compares unrestricted current assets to unrestricted current liabilities.  Any ratio that has at least $1.50 of unrestricted current assets to each $1 of unrestricted current liabilities is generally considered satisfactory.  This indicator is determined at 30 June each year and disclosed at note 13(a) of Council’s annual Financial Statements.  This indicator is usually provided on a consolidated basis ie amalgamating all of Council’s General, Water and Sewerage Funds.  However since the 2009/2010 financial year, Councils are now required to calculate this ratio and other ratios by Fund for additional disclosure as outlined in note 13(b) of Council’s annual Financial Statements. On a consolidated basis at 30 June 2015, Council had $2.91 of unrestricted current assets to each $1 of unrestricted current liabilities.  The minimum benchmark for this indicator is $1.50 of unrestricted current assets to each $1 of unrestricted current liabilities.

 

·    Accumulated Surplus (Working Funds) – this indicator is a traditional measure of Councils working capital adequacy and is something Byron Shire Council has used for some time and established targets for adequacy in each of the Funds operated being General, Water and Sewerage.  Accumulated Surplus (Working Funds) are not disclosed anywhere in Council’s annual Financial Statements.

 

·    Cash Expense Cover Ratio – this indicator commenced disclosure from the 2013/2014 financial year that is disclosed at note 13(a) of Council’s annual Financial Statements.  It measures the number of months Council would be able to pay its immediate expenses without additional cash inflow.  The benchmark for this ratio is 3 months and at 30 June 2015, Council was at 12.6 months.

 

This report is provided to the Finance Advisory Committee to specifically identify the Accumulated Surplus (Working Funds) position as at 30 June 2015 and also to identify in detail the reserve funds restricted against Council’s available cash and investments as at 30 June 2015.  There is a direct linkage to these items and Council’s Financial Statements for 2014/2015 adopted by Council at its Ordinary Meeting held 29 October 2015.

 

Accumulated Surplus (Working Funds)

 

This measure of working capital has been utilised by Council as an indicator of its short term liquidity position.  To this end, Council has adopted the following targets by Fund:

 

·  General Fund - $1,000,000

·  Water Fund - $600,000

·  Sewerage Fund - $600,000

 

This indicator attempts to identify the working capital position of Council by comparing the following items:

 

·    Current Assets (cash at bank, investments, current receivables, inventories and other current assets (generally prepayments)) less restricted assets or reserves (unexpended grants, contributions, bonds and deposits, unexpended loans, crown reserves and internal reserves)

 

·    Current Liabilities (creditors, loan repayments due the next year, and provisions) less any restricted current liabilities, provisions and loan repayments.  Provisions and loan repayments are generally excluded from the calculation as they form part of Council’s committed budget for the following financial year ie they are provided for there plus the immediate settlement of these items is generally not required.

 

One of the issues associated with the use of Accumulated Surplus (Working Funds) as a financial indicator relates to what items are included, and what items are not.  An example of this is that the value of Council’s stores and materials is included as a current asset but these are not easily converted to cash.  Firstly to utilise stores and materials as cash requires the stores and materials to be sold so whilst considered a current asset, if needed to in an emergency, the process to convert stores and materials to cash would take time, and therefore in terms of timing there is a question as to whether stores and materials are an appropriate component of Accumulated Surplus (Working Funds) balance.  The theme follows that not all of Council’s current assets can be converted to cash immediately.

 

Notwithstanding the above comments, included at Attachment 1 is the calculation of Accumulated Surplus (Working Funds) for Council as at 30 June 2015 by Fund.  Results indicate the following:

 

·    Water Fund has an adopted target of $600,000. At 30 June 2015, the available Accumulated Surplus (Working Funds) is $1,968,400.  This amount is some $1,368,400 in excess of the adopted target but has been derived by reducing total Water Fund Reserves.  Water Fund Reserves are reduced to match total available cash and investments within the Water Fund of $13,395,500.  This logic ensures when Council is considering the utilisation of the Reserve, that the available balance is cash backed and does not include amounts yet to be converted to cash and is therefore not overstated. 

 

·    Sewerage Fund has an adopted target of $600,000. At 30 June 2015, the available Accumulated Surplus (Working Funds) is $1,776,500.  This amount is some $1,176,500 in excess of the adopted target but has been derived by reducing total Sewerage Fund Reserves.  Sewerage Fund Reserves are reduced to match total available cash and investments within the Sewerage Fund at 30 June 2015 of $11,694,400.  This logic ensures when Council is considering the utilisation of the Reserve, that the available balance is cash backed and does not include amounts yet to be converted to cash and is therefore not overstated. 

 

·    General Fund has an adopted target of $1,000,000.  At 30 June 2015 the available Accumulated Surplus (Working Funds) is $919,100. This amount is some $80,900 below the adopted target.  It is also a reduction of $1,020,600 compared to the Accumulated Surplus (Working Funds) position at 30 June 2014 of $1,939,700. In this regard Council will need to monitor this result and be careful in considering any proposed resolution to fund expenditure from the General Fund Accumulated Surplus (Working Funds) given its target of $1,000,000. Council’s ongoing consistent discipline in not using the General Fund Accumulated Surplus (Working Funds) as a funding source when considering expenditure is a prudent measure and is maintaining the short term financial position of the Council.  A contributing factor to the decline in Accumulated Surplus (Workings Funds) is the steps undertaken by Council to provide further internal reserve restrictions at 30 June 2015 as a means to fund future potential expenditures.  In view of this the reduction in the Accumulated Surplus (Workings Funds) should not be considered a concern.  Council was able to increase its internal reserves by $4,567,504 during 2014/2015 which includes the creation of new reserves in excess of $1,000,000 and the enhancement of or transfer of additional funds to a number of other existing reserves.  Council was also able to repay all internal loans from other reserves that funded the development of the Roundhouse subdivision during 2014/2015.  The creation of new reserves, transfer of additional funds to existing reserves and repayment of internal borrowings used to fund the development of the Roundhouse site should be seen as a significant financial achievement for the 201/15 Financial Year.

 

The notion of Accumulated Surplus (Working Funds), whilst an indicator of working capital cannot be construed as available cash, as its composure is simply not cash alone. This is something that an alternative measure such as the unrestricted cash amount which is disclosed at Note 6(c) to Council’s annual Financial Statements, is considered as a stronger indicator, as it is based solely on available cash not restricted for any other purpose. 

 

The unrestricted cash amount disclosed in the Financial Statements indicates that as at 30 June 2015 that this amount was $1,143,412 whereas in 2013/2014 it was $1,038,558.  This means that all cash held by Council as at 30 June 2015 was restricted for a purpose by legislation, funding condition or Council resolution except for $1,143,412.

 

Whilst Council has considered Accumulated Surplus (Working Funds) as its traditional guide to working capital or short term liquidity, it is also important to consider the amount of unrestricted cash as an alternative indicator, and which can be argued is a more valid measure of the available cash position of Council.  Council has considered this proposition at its Ordinary Meeting held on 8 August 2013 where it also adopted an unrestricted cash balance target of $1,000,000 for the General Fund as a measure of its short term unrestricted liquidity from 1 July 2013 (Resolution: 13-378). 

 

Council should in the future consider moving away from the Accumulated Surplus (Working Funds) indicator as it is subjective in calculation (interpreting what is included) and incorporates non-cash items even though it is purported to be a liquidity measure.  Notwithstanding these comments, Council maintained in excess of $1,000,000 unrestricted cash balance target during the 2014/2015 financial year and should be pleased with this outcome.  Maintenance of this achieved position to at least above the target level will be the ongoing challenge for the future.

 

Reserves

 

Detailed at Attachment 2 is a listing of Council’s cash funded reserves.  Contained in this listing is the detail of and value as at 30 June 2015 of the various reserve types.  Reserve types are broken down into the following components:

 

·    External Restrictions – these reserves relate to unexpended grants, developer contributions, bonds and deposits, unexpended loans (non-General Fund), Crown reserves, domestic waste management, water, sewerage and Roads and Maritime Services (RMS) contributions unexpended.

 

·    Internal restrictions – these are reserves set by Council for specific purposes that are not required to be restricted for external reasons ie legislation, condition etc.  These reserves though are generally created to isolate self-financing activities and their accumulated funds or if Council by resolution wants funds specifically set aside.  Examples of internal restrictions are also listed in Attachment 2 and also in note 6(c) to Council’s annual Financial Statements.

 

In summary, as at 30 June 2015 detailed in Note 6(c) to the annual Financial Statements are the following values relating to reserves restricted against available cash and investments:

 

·  Total available cash and investments $72,975,491

·  Total external restrictions (reserves) $55,042,609

·  Total internal restrictions (reserves) $16,789,470

·  Total unrestricted cash and investments $1,143,412.

 

It is appropriate that Council consider its reserves which are restricted against available cash and investments and resolve by resolution to adopt their description and value.  By default this occurred when Council adopted the 2014/2015 Financial Statements at its Ordinary Meeting held 29 October 2015 (Resolution 15-564).

 

Financial Implications

 

There are no direct financial implications associated with this report.  The report is identifying to the Finance Advisory Committee the overall liquidity and reserves position of Council at 30 June 2015 for information.

 

Statutory and Policy Compliance Implications

 

The requirement of Council to restrict aspects of its available cash and investments follows from the requirement to maintain appropriate accounting records to verify the expenditure of funds and recognition of funds required to be detailed as unexpended.  This is a canvassed by the Local Government Code of Accounting Practice and Financial Reporting (as amended) upon which Council must adhere to as outlined Section 413(3) of the Local Government Act 1993 and Regulation 214 of the Local Government (General) Regulation 2005.

 

Section 409 of the Local Government Act 1993 and Regulation 205 of the Local Government (General) Regulation also outline conditions on the use of funds received by Council.

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           5.3 - Attachment 1

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.3 - Attachment 2

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.4

 

 

Report No. 5.4             Budget Review - 1 July 2015 to 30 September 2015

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

File No:                        I2015/1358

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 2015/2016 financial year, reviewed as at 30 September 2015.

 

This report contains an overview of the proposed budget variations for the General Fund, Water Fund and Sewerage Fund.  The specific details of these proposed variations are included in Attachment 1 and 2 for Council’s consideration and authorisation.

 

Attachment 3 contains the Integrated Planning and Reporting Framework (IP&R) Quarterly Budget Review Statement (QBRS) as outlined by the Division of Local Government in circular 10-32.

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

1.       That Council authorise the itemised budget variations as shown in Attachment 2 (#E2015/72257) which includes the following results in the 30 September 2015 Quarterly Review of the 2015/2016 Budget:

 

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

b)      General Fund - $607,900 decrease in reserves

c)      Water Fund - $27,300 increase in reserves

          d)      Sewerage Fund - $3,900 decrease in reserves.

 

2.       That Council adopt the revised General Fund Accumulated Surplus/(Working Funds) of $919,100 for the 2015/2016 financial year as at 30 September 2015.

 

Attachments:

 

1        Budget Variations for the General, Water and Sewerage Funds, E2015/72256, page 62  

2        Itemised Listing of Budget Variations for General, Water and Sewerage Funds, E2015/72257,
page
127  

3        Integrated Planning and Reporting Framework (IP&R) required Quarterly Review Statement, E2015/72258, page 134  

 

 


 

Report

 

Council adopted the 2015/2016 budget on 25 June 2015 via Resolution 15-293.  It also considered and adopted the budget carryovers from the 2014/2015 financial year, to be incorporated into the 2015/2016 budget, at its Ordinary Meeting held 27 August 2015 via Resolution 15-386.  Since that date, Council has reviewed the budget taking into consideration the 2014/2015 Financial Statement results and progress through the first quarter of the 2015/2016 financial year.  This report considers the September 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 25 June 2015 plus the adopted carryover budgets from 2014/2015 followed by the resolutions between July and September and the revote (or adjustment for this review) and then the revised position projected for 30 June 2016 as at 30 September 2015.

 

On the far right of the Principal Activity, 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 the Attachment 1 which provides an explanation of the variation.

 

There is also information detailing restricted assets (reserves) to show Council estimated balances as at 30 June 2016 for all Council’s reserves.

 

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

 

Office of Local Government Budget Review Guidelines:-

 

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

 

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

 

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

 

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

 

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

Consolidated

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

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

 

·    Budget Review Capital Budget

 

·    Budget Review Cash and Investments Position

 

·    Budget Review Key performance indicators

 

·    Budget Review Contracts and Other Expenses

 

The above components are included in Attachment 3:-

 

Income and Expenditure Budget Review Statement by Type – This shows Councils income and Expenditure by type.  This has been split by Fund.  Adjustments are shown, looking from left to right.  These adjustments are commented on through pages 51 to 63 of Attachment 1.

 

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

 

Cash and Investments Budget Review Statement – This statement reconciles Council’s restricted funds (reserves) against available cash and investments.  Council has attempted to indicate an actual position as at 30 September 2015 of each reserve to show a total cash position of reserves with any difference between that position and total cash and investments held as available cash and investments.  It should be recognised that the figure is at a point in time and may vary greatly in future quarterly reviews pending on cash flow movements.

 

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

 

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

 

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

 

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

 

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

Contracts and Other Expenses - This report highlights any contracts Council entered into during the July to September quarter that are greater than $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 2015/2016 financial year projected to 30 June 2016 but revised as at 30 September 2015.

 

 

2015/2016 Budget Review Statement as at 30 September 2015

Original Estimate (Including Carryovers)

 1/7/2015

 

Adjustments to Sept 2015 including Resolutions*

 

Proposed Sept 2015 Review Revotes

 

Revised Estimate 30/6/2016 at 30/9/2015

Operating Revenue

72,162,100

0

390,600

72,552,700

Operating Expenditure

78,507,400

2,200

(1,654,200)

76,855,400

Operating Result – Surplus/Deficit

(6,345,300)

(2,200)

2,044,800

(4,302,700)

Add: Capital Revenue

10,726,000

0

764,100

11,490,100

Change in Net Assets

4,380,700

(2,200)

2,808,900

7,187,400

Add: Non Cash Expenses

14,586,500

0

(2,071,400)

12,515,100

Add: Non-Operating Funds Employed

4,100,000

0

0

4,100,000

Subtract: Funds Deployed for Non-Operating Purposes

(43,048,100)

0

(1,322,000)

(44,370,100)

Cash Surplus/(Deficit)

(19,980,900)

(2,200)

(584,500)

(20,567,600)

Restricted Funds – Increase / (Decrease)

(19,980,900)

(2,200)

(584,500)

(20,567,600)

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

0

0

0

0

 

As the table above highlights, the forecast result for the year has not changed during the review period including Council resolutions.  An adjustment though has been made to depreciation (non-cash expenses) to reflect actual depreciation incurred in the 2014/2015 year.  This has reduced significantly due to the Roads and Drainage revaluation.  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 September 2015:


 

 

Opening Balance – 1 July 2015

$919,100

Plus original budget movement and carryovers

0

Council Resolutions July – September Quarter

0

Recommendations within this Review – increase/(decrease)

0

Forecast Working Funds Result – Surplus/(Deficit) – 30 June 2016

0

Estimated Working Funds Closing Balance – 30 June 2016

$919,100

 

The General Fund financial position has had no movement (including budget movements) as a result of this budget review. The proposed budget changes that have overall not impacted on this result have been highlighted in Attachment 1 and summarised further in this report below.

 

Council Resolutions

 

There were no Council resolutions during the July to September 2015 quarter that impacted the overall 2015/2016 budget result.

 

Budget Adjustments

 

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

 

 

 

 

 

 

Budget Directorate

Revenue Increase/

(Decrease) $

Expenditure Increase/

(Decrease) $

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

Organisation Development

39,000

39,000

0

Corporate & Community Services

191,300

81,800

109,500

Infrastructure Services

(322.500)

(207,900)

(114,600)

Sustainable Environment & Economy

78,100

73,000

5,100

Total Budget Movements

(14,100)

(14,100)

0

 

Budget Adjustment Comments

 

Within each of the Budget Directorates of the General Fund, are a series of budget adjustments identified in detail at Attachment 1 and 2.  More detailed notes on these are provided in Attachment 1 but in summary the major additional items included are summarised below by Division and are included in the overall budget adjustments table above:

 

Organisation Development

 

·    In the Organisation Development Program additional $39,000 expenditure has been provided for the implementation of the organisation restructure with funding from the Structural Change Reserve. Provision was made for this in finalising the 2014/2015 financial statements.

 

Corporate and Community Services

 

·    In the Councillor Services program additional expenditure of $4,900 is required to cover the increased cost of the Local Government Shires Association subscription.

 

·    In the General Purpose Revenues Program an additional $161,500 in revenue has been recognised as the allocation for Council’s 2015/2016 Financial Assistance Grant is $161,500 more than budgeted.  The original budget for this grant replicated the 2014/15 amount as Councils were advised that the Financial Assistance Grant would be frozen for four years including 2015/16. Council though has received an increased allocation following determination from the NSW Local Government Grants Commission as to the distribution of the Financial Assistance Grant allocated to NSW.

 

·    In the Financial Services Program there is a proposed budget adjustment for additional expenditure of $10,000 to purchase a product to manage and streamline Councils fees and charges.  This can be funded through the Information Services reserve.  An additional adjustment of $10,000 is also required for Councils’ external auditors to review an Asset Management preparedness Assessment for 2015 as required by the Office of Local Government.

 

·    In the Governance Services Program it is proposed to increase expenditure by $7,200 due to Councils participation in the Self Assessment Survey by the Local Government Professionals NSW.

 

·    In the Community Development Program, the revenue budget has been adjusted to account for a $4,800 sport & disability grant and $15,000 returned from Byron Bay Taxis and Limousines for the Taxi Security Scheme.  Operating Expenditure has also increased by the grant amounts.  Additional expenditure is also attributable to Resolution 15-296 which resolved “That at its first quarterly budget review, council examine ways of reinstating funds of up to $36,000 for the rest of the 2015/16 year for general community Section 356 (S356) Donations”.  This resolution has been able to be factored into this Budget Review without altering the overall budget result.

 

Infrastructure Services

 

·    In the Local Roads and Drainage program, there are a significant number of adjustments outlined under Note 15 in the Budget Variations explanations section of Attachment 1.  The majority of these are for various road reseal works, although there is no impact on the overall budget result. Further disclosure is included in the second and third pages of Attachment 2 under the budget program heading Local Roads and Bridges.  A comparison can then be made as to the scale of works identified in the Original 2015/2016 budget in terms of road reseals and construction compared to revised works proposed as per the September 2015 Quarter Budget Review.

 

·    In the Roads and Maritime Services program (RMS) operating income and expenditure decreased due to a reduction in approved funding from RMS for Natural Disaster works at Huonbrook ($137,100), a reduction to works for Broken Head road that were already taken up in a capital works job ($143,500) and a slight increase in expenditure for Regional roads 463 and 545 ($54,000).  It is proposed to increase capital works for design costs for Broken Head road (Reserve funded) and Mullumbimby road (Revenue funded).

 

·    In the Open Space and Recreation program, operating income decreased due to the anticipated shortfall in income for the disposal of trade waste for festivals.  Operating expenditure increased largely due to $9,000 being allocated for shark patrols, $209,500 being moved from the Local Roads & Drainage program for works carried out by the Better Byron Crew and an additional $45,400 to cover the cost of Surf Life Saving at The Pass, Wategos and Tallow beaches. Capital works decreased largely due to moving the budget from 2015/16 to proposed 2016/17 for Civic Improvements in Byron Bay that can’t be completed until the Byron Bay Masterplan is finalised. An additional $50,000 for the Cavanbah Sports Centre Lighting so a quote for works can be accepted and a reduction to other various works that cannot attain grant funding so will no longer go ahead.

 

·    In the Waste & Recycling program It is proposed to reduce operating expenditure due to the Kitchen Caddies and Liners ($25,900 - 3415.15) and Education Packs ($20,000 - 3415.16) being completed under budget.  It is recommended that this reduction in the budget be reallocated to 4859.57 Organics Mobile Garbage Bins which is over budget.  Each of these line items are funded through the Organics Collections Systems grant.  It is proposed to increase capital expenditure as costs for RFID Chips and the purchase of Organic Bins are over the current budget.

 

·    In the First Sun Holiday Park program, it is proposed to increase the budget by $30,000 to cover the cost of the annual painting of the park.  This would be funded through the Holiday Park reserve.

 

·    In the Facilities Management program operating income decreased due to the rent for Byron Bay Pool Cafe reducing by $35,100 to align with the new Deed of Agreement and a slight increase in the rent due from the Community Learning and Innovation Centre building.  Operating expenditure increased due a budget requirement of $80,000 to bring Councils’ administration building fire hydrants up to BCA standard. Capital works increased largely due to the upgrade of Suffolk Park Hall and funding developer contributions associated with the Roundhouse subdivision.

 

Sustainable Environment and Economy

 

·    Additional revenue is occurring in the Development & Certification Program due to increased development activity. 

 

·    In the Planning Policy and Natural Environment Program, the budget is to be amended to cater for three new grants received (Graminoid Clay Heath Restoration $19,500, Land for Wildlife $31,200 and NCCARF Partnership program $3,000). 

 

·    In the Economic Development program an additional $8,000 is required for the Byron Bay Masterplan, funded from the General Managers reserve. 

 

WATER FUND

 

After completion of the 2014/2015 Financial Statements the Accumulated Surplus (Working Fund) balance for the Water Fund, as at 30 June 2015, is $1,968,400 with capital works reserves of $2,577,900.  It also held $10,817,600 in section 64 developer contributions at this time.

 

The estimated Water Fund reserve balances as at 30 June 2016, and forecast in this Quarter Budget Review, are derived as follows:

 

Capital Works Reserve

 

Opening Reserve Balance at 1 July 2015

$2,577,900

Plus original budget reserve movement

1,130,200

Less reserve funded carryovers from 2014/2015

(1,445,400)

Resolutions July -  September Quarter – increase / (decrease)

(2,200)

September Quarterly Review Adjustments – increase / (decrease)

21,300

Forecast Reserve Movement for 2015/2016 – Increase / (Decrease)

(296,100)

Estimated Reserve Balance at 30 June 2016

$2,281,800

 


 

Section 64 Developer Contributions

 

Opening Reserve Balance at 1 July 2015

$10,817,600

Plus original budget reserve movement

(3,779,000)

Less reserve funded carryovers from 2014/2015

(226,500)

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

6,000

Forecast Reserve Movement for 2015/2016 – Increase / (Decrease)

(3,999,500)

Estimated Reserve Balance at 30 June 2016

$6,818,100

 

Movements for Water Fund can be seen in Attachment 1 with a proposed estimated increase to reserves (including S64 Contributions) overall of $27,300 from the 30 September 2015 Quarter Budget Review.

 

SEWERAGE FUND

 

After completion of the 2014/2015 Financial Statements the Accumulated Surplus (Working Fund) balance for the Sewer Fund, as at 30 June 2015, was $1,776,500 with capital works reserves of $4,681,300 and plant reserve of $785,100. It also held $6,228,000 in section 64 developer contributions.

 

Capital Works Reserve

 

Opening Reserve Balance at 1 July 2015

$4,681,300

Plus original budget reserve movement

2,189,700

Less reserve funded carryovers from 2014/2015

(125,500)

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

(3,900)

Forecast Reserve Movement for 2015/2016 – Increase / (Decrease)

2,060,300

Estimated Reserve Balance at 30 June 2016

$6,741,600

 

Plant Reserve

 

Opening Reserve Balance at 1 July 2015

$785,100

Plus original budget reserve movement

0

Less reserve funded carryovers from 2014/2015

0

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

0

Forecast Reserve Movement for 2015/2016 – Increase / (Decrease)

0

Estimated Reserve Balance at 30 June 2016

$785,100

 

Section 64 Developer Contributions

 

Opening Reserve Balance at 1 July 2015

$6,228,000

Plus original budget reserve movement

(1,853,600)

Less reserve funded carryovers from 2014/2015

(1,803,500)

Resolutions July -  September Quarter – increase / (decrease)

0

September Quarterly Review Adjustments – increase / (decrease)

0

Forecast Reserve Movement for 2015/2016 – Increase / (Decrease)

(3,657,100)

Estimated Reserve Balance at 30 June 2016

$2,570,900

 

Movements for the Sewerage Fund can be seen in Attachment 1 with a proposed estimated overall decrease to reserves (including S64 Contributions) of $3,900 from the 30 September 2015 Quarter Budget Review.

 

Legal Expenses

 

One of the major financial concerns for Council over previous years has been legal expenses. Notonly does this item represent a large expenditure item funded by rate income, but is also susceptible to large fluctuations. 

 

The table that follows indicates the allocated budget and actual legal expenditure within Council on

 a fund basis.

 

Total Legal Income & Expenditure as at 30 September 2015

 

 

Program

2015/2016

Budget ($)

 

Actual ($)

Percentage To Revised Budget

Income

 

 

 

Legal Expenses Recovered

0

360

0%

Total Income

0

360

0%

 

 

 

 

Expenditure

 

 

 

General Legal Expenses

200,000

12,369

6%

Total Expenditure General Fund

200,000

12,369

6%

 

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

 

Legal Reserve

 

Opening Reserve Balance at 1 July 2015

$779,100

Less Belongil Bridge Pile Repairs (44217 - Original Budget)

(200,000)

Less Road Reconstruction Works (Various – Original Budget)

(230,000)

Estimated Reserve Balance at as at 30 September 2015

$349,100

 

Financial Implications

 

The 30 September 2015 Quarter Budget Review of the 2015/2016 Budget has not changed the overall budget result and as such this result does not affect the estimated accumulated surplus (working funds) position attributable to the General Fund, with this remaining at an estimated $919,100 at 30 June 2016.

 

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 2015/2016 financial year, having consideration of the original estimate of income and expenditure at the 30 September 2015 Quarter Budget Review.

 

This opinion is based on the estimated General Fund Accumulated Surplus (Working Funds) position and that the current indicative budget position for 2015/2016 is maintained in this Budget Review.  Notwithstanding this, Council will need to continue to carefully monitor the 2015/2016 budget over the remainder of the financial year. 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.4 - Attachment 1

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.4 - Attachment 2

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.4 - Attachment 3

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