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 May 2016

Time

2.00pm

 

 

 

 

 

Mark Arnold

Director Corporate and Community Services                                                                    I2016/467

                                                                                                                                    Distributed 06/05/16

 

 


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 18 February 2016

4.    Business Arising From Previous Minutes

5.    Staff Reports

Corporate and Community Services

5.1       2015/16 Financial Sustainability Project Plan - Update on the Action Implementation Plan as at 31 March 2016....................................................................................................................... 4

5.2       Draft 2016/2017 Budget.................................................................................................. 27

5.3       Budget Review - 1 January 2016 to 31 March 2016.................................................... 109   

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.1

 

 

Staff Reports - Corporate and Community Services

 

Report No. 5.1             2015/16 Financial Sustainability Project Plan - Update on the Action Implementation Plan as at 31 March 2016

Directorate:                 Corporate and Community Services

Report Author:           Mark Arnold, Director Corporate and Community Services

File No:                        I2016/299

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

Council at its Ordinary meeting held on 10 December 2015 adopted the Financial Sustainability Plan (FSP) 2015/2016 via Resolution 15-606

 

The FSP adopted by Council is for the 2015/16 Financial Year and details the strategic approach adopted by Council for managing the Financial Sustainability of the Council as an organisation.

 

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

 

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

 

This report has been prepared to provide the Finance Advisory Committee with an update report on the implementation of the actions in the 2015/16 FSP Plan, for the period to 31 March 2016.

 

  

 

RECOMMENDATION:

That the update report to 31 March 2016 on the 2015/2016 Financial Sustainability Project Plan Action Implementation Plan (E2016/20541) be received and noted.

 

Attachments:

 

1        Action Implementation Plan update as at 31 March 2016, E2016/20541 , page 7  

 

 

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Report

 

Council at its Ordinary meeting held on 10 December 2015 adopted the Financial Sustainability Plan (FSP) 2015/2016 via Resolution 15-606

 

The FSP adopted by Council is for the 2015/16 Financial Year and details the strategic approach adopted by Council for managing the Financial Sustainability of the Council as an organisation.

 

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

 

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

 

This report has been prepared to provide the Finance Advisory Committee with an update report on the implementation of the actions in the 2015/16 FSP, for the period to 31 March 2016.

 

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

 

·     Expenditure Review

·     Revenue Review

·     Land Review and Property Development

·     Strategic Procurement

·     Policy and Decision Making

·     Potential Commercial Opportunities

·     Volunteerism

·     Collaborations and Partnerships

·     Asset Management

·     Long Term Financial Planning

·     Performance Indicators

 

Financial Implications

 

The Finance Advisory Committee by referencing Attachment 1 will see progress against various action items associated with the FSP.  In terms of actual financial outcomes, at this point for the 2015/2016 financial year, there has been no further savings or new revenue identified since the last update report to the Finance Advisory Committee.

 

There were no financial outcomes recognised in the March 2016 Quarter Budget Review identified. The focus of this Budget Review has been in relation to a review of the capital works program in relation to expected works to be completed this financial year.  A further update will be able to be provided in consideration of the 30 June 2016 Budget Review when it is completed.

 

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

 

Further reporting will be provided to the Finance Advisory Committee at future meetings on financial outcomes.  This will be done in conjunction the Quarterly Budget Review (QBR) reporting process over the 2015/2016 financial year according to Resolution 14-326.  A register has been developed to track the financial outcomes of the FSP actions that is envisaged will derive an improved quantifiable financial sustainability outcome overall to Council.

 

Statutory and Policy Compliance Implications

 

Council Resolutions 13-148, 13-238, 14-326 and 15-606.

 

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

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           5.1 - Attachment 1

Strategy Element:       Expenditure Review

 

Actions

Action Owner

Action Due Date

Management Comments

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

DC&CS

June 2016

Progress Update (31 March 2016)

Reports are prepared following the quarterly Strategic Procurement Steering Committee meetings to the ET and responsible Managers The reports include recommendations for potential savings or efficiency gains from Contracts tendered by Council or the NOROC Procurement Group, and recommendations on Contracts that should be developed and Tendered by Council.

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

DC&CS

Monthly

Progress Update (31 March 2016)

Monthly Management Finance Reports are prepared by the Finance Manager and considered by the Executive Team at the monthly Performance Management meeting held on the second Wednesday of each month.

3.       Monthly Management Finance Reports provided to Councillors.

DC&CS

Monthly

Progress Update (31 March 2016)

A copy of the Monthly Management Finance Report is distributed by the Director Corporate and Community Services to Councillors on the Friday following the Executive Team Performance Management meeting. The version of the Monthly Management Finance Report distributed Councillors is in accordance with the template adopted by Council for the monthly report.

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

DC&CS

Quarterly

Progress Update (31 March 2016)

The 2015/16 was adopted by Council at its ordinary meeting held on 10 December 2015 (refer Resolution 15-606). This is the second progress report prepared for the Finance Committee updating the Committee on the progress of implementing the adopted actions.

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

DC&CS

Quarterly

Progress Update (31 March 2016)

Any identified expenditure savings are as detailed in the separate March 2016 Quarterly Budget Review Report to this meeting of the Finance Committee.

6.       Report to Council any recommendations regards policy changes.

DC&CS

As Required

Progress Update (31 March 2016)

The ET during the last quarter considered a report on Council’s adopted Policies. This Report identified the Policies that are both operational and financially restrictive and are to be reviewed and reported to Council. The Policies identified for review have been prioritised by the Executive Team, and the Manager Governance has been allocated the responsibility for co-ordinating the review process, including the reporting of the Policies to Council.

 


 

Strategy Element:       Revenue Review

 

Actions

Action Owner

Action Due Date

Management Comments

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

DC&CS

June 2016

Progress Update (31 March 2016))

During the quarter the main focus has been on the continued implementation of the Pay Parking Scheme for the Byron Bay CBD. Progress Status reports have provided on a weekly basis to the Executive Team, with the Internal Working Team also meeting on a weekly basis. The Tyagarah Airport Internal Working Group has been meeting on monthly basis, with monthly reports being provided to the Executive Team. Both projects are included in the weekly critical projects update to Councillors.

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

DC&CS

30 June 2016

Progress Update (31 March 2016)

See above comments.

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

DC&CS

Quarterly

Progress Update (31 March 2016)

Reported as required.

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

DC&CS

June 2016

Progress Update (31 March 2016)

Refer comments provided to Action 6 in the Expenditure Review.

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

DC&CS

June 2016

Progress Update (31 March 2016)

The main focus in this area for the quarter has been in seeking funding for the replacement of rural bridges and specific upgrade and/or improvement projects on urban and rural roads, with the lodgement of funding applications to the State and Federal Government. This process including lobbying for additional funds has been carried over into the current quarter and the next round of funding.

 

 

 


 

Strategy Element:       Land Review and Property Development

 

Actions

Action Owner

Action Due Date

Management Comments

General Fund

1.       Roundhouse – Complete sale.

DIS

Complete

Progress Update (31 December 2015)

Following an unsuccessful court challenge by OSCA, sale of the subdivision has been finalised.

 

Progress Update (31 March 2016)

Completed

2.       Lot 12 Bayshore Drive – Complete clean up contract and finalise land contamination status.

DIS

June 2016

Progress Update (31 December 2015)

The contractor, Brisbane Screenings will commence processing the spoil stock pile following EPA approval. Fencing of the site has been completed. Geotechnical advice has been obtained to guide the reuse and filling process.

 

Progress Update (31 March 2016)

The EPA are assessing Council’s licence application. All issues other than noise mitigation appear to be resolved. The REF has been provisionally approved pending any further requirements from the EPA. The contractor, Brisbane Screenings will commence processing the spoil stock pile following EPA approval

3.       Station Street – Subject to S96 approval and viability, complete the subdivision.

DIS

June 2016

Progress Update (31 December 2015)

Council has resolved to retain the fig tree and work with North Coast Community Housing on options.

 

Progress Update (31 March 2016)

Following the resolution of Council liaison has continued with NCCH and they are now conducting due diligence and may move to lodge a DA as part of the process. Staff have commenced work to implement the subdivision works with a view to creating the land parcels for sale potentially to NCCH in the first instance.

4.       Yaran Road, Tyagarah Airfield –DA completion and approval. Commercial assessment and potential works.

DIS

June 2016

Progress Update (31 December 2015)

Subdivision planning and planning proposal underway.

 

 

Progress Update (31 March 2016)

The Planning Proposal to amend Byron Local Environmental Plan (LEP)

2014 in regards to Council owned land at the Tyagarah Airfield is to be placed on public exhibition for a period of 28 days from 5 May to 2 June 2016.

5.       Lot 22 Mullumbimby – DA development.
* Dependent upon on sale of Telstra site and Station Street.

DIS

June 2016

Progress Update (31 December 2015)

The option of an educational facility was carefully assessed but the necessary rezoning would be precluded due to the flood status of the land. Further options compatible with the current zoning will be considered.

 

Progress Update (31 March 2016)

A consultancy brief has been developed to further examine flood modelling in more detail to evaluate subdivision development potential.

6.       Bayshore Drive Works Depot,
Byron Bay (Lot 102, DP1087996, 1.79 hectares) – Progress the assessment and optimisation of depot based services.

DIS

June 2016

Progress Update (31 December 2015)

Project on hold whilst the details of the review of depot services are finalised.  Options may exist to spread operations across some of the sewer fund sites.  There maybe surplus RMS land that could be suitable.

 

Progress Update (31 March 2016)

An enquiry has been lodged with the RMS Regional Manager regarding the status of RMS land on Yaran Road, Tyagarah.

 

7. Manfred St, Belongil

DCCS

June 2016

Progress Update (31 March 2016)

Staff have been working through the various Council resolutions relating to reclassifying community land in order of priority depending on the timing of the resolution, the linkage of the land to the Financial Sustainability Progress Plan (and ease of releasing financial returns to Council) and available resources. The current 2 priority reclassification processes involve Suffolk Park Caravan Park and Manfred Street land.

 

In relation to Manfred Street, Council may recall that the land is currently classified community land and therefore cannot be sold but Council as resolved to proceed to seek gateway approval from Department of Planning to consult with the community on a proposal to reclassify the land to Operational Land. 

 

A consultant was engaged to prepare a draft gateway Planning Proposal and that was received on 29 March 2016. That draft has been reviewed by staff who have confirmed that it requires some changes to clarify Council’s intent ie that the reclassification to operational land is intended to allow Council, should it resolve to do so in future, to either sell easements over the land (where that land is already covered by easements or encroachments) and/or to sell the land itself if that is appropriate at the time.

 

Staff have now been assigned the task of making the necessary changes and finalising the gateway Planning Proposal so that it can be lodged under the current Council Resolution with the Department of Planning for gateway determination and lodgement is expected to occur before the end of June 2016.

Water Fund

7.       Fletcher Street – Business case and resolve preferred development model. DA preparation and approval.

DIS

June 2016

Progress Update (31 December 2015)

Consultant architect Dominic Finlay Jones has been engaged to prepare a brief and manage the process of Architectural preparation of concept plans, economical analysis and subsequent recommendations to Council.

 

Progress Update (31 March 2016)

Consultant architect Dominic Finlay Jones has progressed documentation with an EOI to be called. This will lead to a short list of architects who will submit full proposals.

Sewer Fund

8.       South Byron STP – Future option determination. Start remediation and rezoning.

DIS

June 2016

Progress Update (31 December 2015)

The contract for demolition of the old STP structures is complete.  The next stage of site decontamination is dependent on determination of the proposed future use of the site.  Work is progressing on options for the future use.

 

Progress Update (31 March 2016)

Consultants Creative Nine have completed a Demand Study for future use options. DPWS have completed a status report on remediation to date and recommendations for the future. This work will be reported to the Executive for consideration.

9.       Brunswick Heads STP – Start demolition and remediation.

DIS

June 2016

Progress Update (31 December 2015)

A contract has been awarded for the environmental and contamination assessments.

 

Progress Update (31 March 2016)

Consultants EPIC are progressing the environmental and contamination assessments.

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

DIS

June 2016

Progress Update (31 December 2015)

Future subdivision options will possibly be influenced by the new Rural Land Use Strategy once completed. This site is also potentially linked to the Lot 4 Mullumbimby site for development considerations.

 

Progress Update (31 March 2016)

The Rural Land Use Strategy has gone on public exhibition. Staff have also liaised with Enovaenergy and Corem regarding energy generation options at this property.

11.     Bangalow STP – Complete rural settlement strategy review.

DIS

June 2016

Progress Update (31 December 2015)

Contingent upon completion of the Rural Land Use Strategy.

 

Progress Update (31 March 2016)

Contingent upon completion of the Rural Land Use Strategy.

12.     Lot 4 Mill Street – Complete rural settlement strategy.

DIS

June 2016

Progress Update (31 December 2015)

Contingent upon completion of the Rural Land Use Strategy and potential development of the Vallances Road property.

 

Progress Update (31 March 2016)

Contingent upon completion of the Rural Land Use Strategy and potential development of the Vallances Road property.

13.     Various small surplus land parcels – Commence sale program.

DIS

June 2016

Progress Update (31 December 2015)

Work is progressing on available options.

 

Progress Update (31 March 2016)

Work has progressed on the options for sale of surplus road reserves and other minor land areas.

Waste Fund

14.     Lots 3 and 29 Manse Road – Complete assessment of quarry landfill/resource recovery options.

DIS

June 2016

Progress Update (31 December 2015)

The assessment was completed and due to the proximity of the ongoing operational waste and transfer facility, it is not viable to sell these properties. The potential relocation of the ridgeline operations into the adjacent quarry would reduce the issues of noise, odour and dust.

 

Progress Update (31 March 2016)

The DA for the Myocum Quarry Landfill has been withdrawn. Options for utilizing the quarry for resource recovery opportunities are preferred and these could ultimately result in the potential relocation of the ridgeline operations thereby facilitating possible sale of these properties.

15.     Lot 15 Dingo Lane, Myocum – Complete assessment of quarry landfill/resource recovery options.

DIS

June 2016

Progress Update (31 December 2015)

The EPA response to the EIS and the requirement for extensive additional investigative work prompted a strategic review of the project. The EIS has been withdrawn and a report will now be prepared for the Water, Sewer & Waste Advisory Committee recommending an alternative way forward.

 

Progress Update (31 March 2016)

The DA for the Myocum Quarry Landfill has been withdrawn. Options for utilizing the quarry for resource recovery opportunities are preferred.

16.     Lot 16 Dingo Lane, Myocum – Complete assessment of quarry landfill/resource recovery options.

DIS

June 2016

Progress Update (31 December 2015)

The EPA response to the EIS and the requirement for extensive additional investigative work prompted a strategic review of the project. The EIS has been withdrawn and a report will now be prepared for the Water, Sewer & Waste Advisory Committee recommending an alternative way forward.

 

Progress Update (31 March 2016)

A valuation has been ordered for this property with a view to potential sale.

 


Strategy Element:       Strategic Procurement

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Develop contracts management guidelines and processes.

DC&CS

June 2016

Progress Update (31 December 2015)

Contract Management Guideline and templates complete and issued for consultation and feedback.  Progressing.

 

Progress Update (31 March 2016)

Contract Management Guidelines endorsed and provided to staff with a toolkit.   Staff training sessions booked for April and May.

 

Complete.

2.       Develop annual procurement plan.

DC&CS

June 2016

Progress Update (31 December 2015)

Annual Procurement Plan developed and endorsed by the Executive Team.

 

Complete.

3.       Develop and implement priority contracts program.

DC&CS

June 2016

Progress Update (31 December 2015)

Priority contracts program developed with Annual Procurement Plan, based on spend analysis data.

 

Complete.

4.       Detailed spend analysis and reporting.

DC&CS

June 2016

Progress Update (31 December 2015)

Initial spend analysis conducted, with further reporting tools to be developed on implementation of new Authority Software Modules.  Ongoing.

 

Progress Update (31 March 2016)

Pending implementation of new Authority Software Modules

5.       Implement ongoing procurement and contract management training program.

DC&CS

June 2016

Progress Update (31 December 2015)

Preparations underway for second half of the year to implement follow-up contract management and procurement training. 

 

Progress Update (31 March 2016)

Follow up Contract Management Training booked for April and May.

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

DC&CS

June 2016

Progress Update (31 December 2015)

Preparations underway with Finance and Business Units targeting consolidated billing for high volume transaction suppliers. 

 

Progress Update (31 March 2016)

Finance and Business Units targeting consolidated billing for high volume transaction suppliers.  Progress Ongoing.

7.       Develop social and sustainable procurement and economic development plan.

DC&CS

June 2016

Progress Update (31 December 2015)

Preparations underway, with Community Development, Sustainability, and Economic Development Team to develop and implement documentation, measures and programs. 

 

Progress Update (31 March 2016)

Draft framework has been developed.   Review and presentation of draft framework to Management scheduled for May.

 

8.       Review purchase to pay process.

DC&CS

June 2016

Progress Update (31 December 2015)

No action this quarter.

 

Progress Update (31 March 2016)

The Procure to Pay is priority productivity project that has been scoped, consultation has occurred, and an IT Project Proposal submitted to secure IT Authority resource to implement for existing requisition module. 

 

Waiting on 2016/17 IT project priorities to be determined.

9.       Implement purchasing cards for low value high volumed transactions.

DC&CS

June 2016

Progress Update (31 December 2015)

No action this quarter.

 

Progress Update (31 March 2016)

P-Card trial implementation planning with Finance underway in May.


Strategy Element:       Policy and Decision Making

 

Actions

Action Owner

Action Due Date

Management Comments

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 ongoing policy and decision making processes.

Finance Manager

June 2016

Progress Update (31 March 2016)

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

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.

Council

June 2016

Progress Update (31 March 2016)

This item is complete.  Carryovers from 2014/2015 to be added to the 2015/2016 were considered by the Finance Advisory Committee at its Meeting held 20 August 2015.  These were later endorsed by Council at its Ordinary Meeting held 27 August 2015 (Resolution 15-386).

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

Finance Manager

June 2016

Progress Update (31 March 2016)

A copy of the Monthly Management Finance Report is distributed by the Director Corporate and Community Services to Councillors on the Friday following the Executive Team Performance Management meeting. The version of the Monthly Management Finance Report distributed Councillors is in accordance with the template adopted by Council for the monthly report.

4.       That policies 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.

DC&CS

June 2016

Progress Update (31 March 2016)

The ET during the quarter considered a report on Council’s adopted Policies. This Report identified the Policies that are both operational and financially restrictive and are to be reviewed and reported to Council. The Policies identified for review have been prioritised by the Executive Team, and the Manager Governance has been allocated the responsibility for co-ordinating the review process, including the reporting of the Policies to Council.


 

Strategy Element:       Potential Commercial Opportunities

 

Actions

Action Owner

Action Due Date

Management Comments

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

ET

June 2016

Progress Update (31 March 2016)

The public submissions received draft Byron Bay Town Centre Master Plan (BBTCMP) is being reported to Council at its Ordinary meeting scheduled for 9 June 2016. This action is pending the adoption of the final BBTCMP.

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.

DIS

 

 

June 2016

Progress Update (31 December 2015)

 

a) Future management and development of the Tyagarah Aerodrome

a)       Plan Commenced

b)       OLS treatment works being procured

c)       Subdivision planning underway

d)       New agreement in place with Skydive Aust.

e)       EOI for Tyagarah Hall lease out to 21/1/16

f)       Aircraft movement monitoring systems being explored

g)       Rec Club & Hanger assessments underway

 

b) Development of Byron Bay Swimming Pool/Café – This project was the subject of a meeting between Council and DPI – Lands representatives in December. Council has prepared and provided DPI – Lands a draft MoU for the rationalisation of the land tenure at this location. Following the meeting Council is awaiting from DPI – Lands its comments on this document. The site is also included in the short and longer term actions for the Main Beach area in Byron Bay in the draft Byron Bay Town Centre Master Plan (BBTCMP).

 

c) Redevelopment of the old Fletcher Street Library building - Consultant architect Dominic Finlay Jones has been engaged to prepare a brief and manage the process of Architectural preparation of concept plans, economical analysis and subsequent recommendations to Council.

 

Progress Update (31 March 2016)

a) Future management and development of the Tyagarah Aerodrome

·           OLS treatment works stage 1 Vegetation works contract has been awarded. Works to commence shortly.

·           Planning Proposal to facilitate heliport and allow subdivision to be placed on exhibition during May 2016.

·           EOI for Tyagarah Hall awarded. DA process by successful proponent is a prerequisite for agreement execution.

·           Aircraft movement monitoring system improvements being implemented

·           Rec Club & Hanger assessments complete

 

b) Development of Byron Bay Swimming Pool/Café – This project was the subject of a meeting between Council and DPI – Lands representatives in December. Council has prepared and provided DPI – Lands a draft MoU for the rationalisation of the land tenure at this location. Following the meeting Council is awaiting from DPI – Lands its comments on this document. The site is also included in the short and longer term actions for the Main Beach area in Byron Bay in the draft Byron Bay Town Centre Master Plan (BBTCMP).

 

c) Redevelopment of the old Fletcher Street Library building - Consultant architect Dominic Finlay Jones has progressed documentation with an EOI to be called. This will lead to a short list of architects who will submit full proposals.

 


Strategy Element:       Volunteerism

 

Actions

Action Owner

Action Due Date

Management Comments

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

Manager Community Development

May 2016

Progress Update (31 December 2015)

Council will host a volunteer recognition event as part of National Volunteer Week in May 2016. Two networking/information sessions for s355 Management Committees will be held prior to EOFY.

 

Progress Update (31 March 2016)

Volunteer recognition morning tea event Tuesday 10 May 2016. Networking/professional development session after recognition event (10.05.16) with guest speaker (TBC).

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

ET

June 2016

Progress Update (31 December 2015)

Council will continue to update the Volunteer Register and will promote volunteerism through existing community and business networks and as part of National Volunteer Week 2016.

 

Progress Update (31 March 2016)

Actions as above with National Volunteering week in May 2016.

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

ET

June 2016

Progress Update (31 December 2015)

The community development branch are finalising the section restructure to incorporate opportunities for volunteer innovation and enterprise programs.

 

Progress Update (31 March 2016)

The Community Development branch will progressively prepare and submit reports on the areas of volunteerism when the section restructure has been implemented.

 

 


 

Strategy Element:       Collaborations and Partnerships

 

Actions

Action Owner

Action Due Date

Management Comments

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

ET

June 2016

Progress Update (31 December 2015)

Councils Community Development branch during the quarter commenced project that is seeking to work collaboratively with State and Federal governments to undertake a service mapping exercise and identify opportunities for collaboration and partnership across the region.

 

Progress Update (31 March 2016)

 

Community Development team working with Department of Premier and Cabinet, Department of Aboriginal Affairs and FACS to identify opportunities for collaborative partnerships ongoing. CD represented Council at North Coast Primary Health Care Network strategic planning workshop. Ongoing NCPHN partnership projects to be identified.

 


 

Strategy Element:       Asset Management

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Prepare an infrastructure report for the Fit for Future program.

DIS

June 2016

Progress Update (31 December 2015)

This was completed and submitted as part of the submission to the State Government.

 

Progress Update (31 March 2016)

This was completed and submitted as part of the submission to the State Government.

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

DIS

June 2016

Progress Update (31 December 2015)

This project is currently on track with detailed asset validation almost complete.

 

Progress Update (31 March 2016)

Detailed inspections of assets have occurred with a view to validating the database prior to revaluation.

 

Consultants Assetic are continuing to prepare the revaluation.

 

APV have been appointed to complete the revaluation of property, plant & equipment, operational land and buildings.

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

DIS

June 2016

Progress Update (31 December 2015)

A draft strategic asset management plan has been completed and will be reported to the March Community Infrastructure Advisory Committee meeting.

 

Progress Update (31 March 2016)

A key work outcome is the communication of service levels linked to the CIP. This was reported to the CIAC on 3 March.

 

The updated draft SAMP will be reported to the June Community Infrastructure Advisory Committee meeting.

Outcomes have been reported to an internal working group on the IP&R and SRV process.

 

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

DIS

June 2016

Progress Update (31 December 2015)

Validation of the Asset Register templates is progressing. Work on Parks & Other Structures will be a priority in 2016 in alignment with the scheduled revaluation. Improved reporting capability has been developed with the Asset Register and Work Orders. There has been ongoing training of IS users with the Asset Register, Work Orders & GIS (Geocortex) Asset Layers. The implementation of Asset Edge – ‘Reflect’ mobile inspection and accomplishments software has been implemented with Transport assets. The Park Inspections will be implemented by June 2016.

 

Progress Update (31 March 2016)

Work is continuing on improving the AM module and associated data sets. This work has greatly supported Council in the NSW Local Government Asset Management Audit Preparedness Assessment conducted in November. The audit report has been received and will be reported to the audit committee.

 

An AM working group has been formed and are working on the audit outcomes.

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

DIS

June 2016

Progress Update (31 December 2015)

This work is in progress through preparation for the 2016/17 operations plan and associated forward estimates.

 

Progress Update (31 March 2016)

Work is progressing on the roads and bridges program as a key component of the evidence based capital program.

 

A major program of road works has been deployed in 2015/16 which will address some of the SS7 backlog roads.

6.       Creatively develop new and revised funding strategies for better community outcomes.

DIS

June 2016

Progress Update (31 December 2015)

There will be a detailed view of S94 opportunities in the forward capital program.  Grant opportunities have been pursued for six bridges.  A major grant application was submitted for the Lot 5 Sports Field but was unfortunately unsuccessful.

 

Progress Update (31 March 2016)

Unfortunately all bridge grant applications have been unsuccessful to date. However, Council has successfully purchased two surplus steel ADF bridges which could assist with future grant applications. Council has also been successful with funding for the Sunrise Boulevard roundabout.

7.       Engage with the community on the challenges of asset management.

DIS

June 2016

Progress Update (31 December 2015)

Meetings of the Community Infrastructure Advisory Committee have been held in September and December.

 

Progress Update (31 March 2016)

The CIAC has considered options for engagement regarding levels of service.

 

Reports will continue to be provided to the CIAC including a report on rural stormwater assets to the 3 March meeting

 

 


Strategy Element:       Long Term Financial Planning

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Update the 2015-2025 Long Term Financial Plan with Water and Sewerage business plan information during the 2015/16 financial year.

Finance Manager

June 2016

Progress Update (31 March 2016)

Action yet to be undertaken as still awaiting receipt of the Water and Sewerage Business Plans.

 

2.       Develop the 2016-2026 Long Term Financial Plan in conjunction with the 2016/17 Operational Plan and report to the Finance Advisory Committee/Council prior to 30 June 2016.

Finance Manager

June 2016

Progress Update (31 December 2015)

This process has commenced with 2016/2017 budget bids currently due and being compiled as the basis for the next version of the Long Term Financial Plan.  Currently on track to be reported to Council prior to 30 June 2016.

 

Progress Update (31 March 2016)

Draft 2016/2017 Budget adopted by Council for public exhibition on 28 April 2016. Work on LTFP ongoing and proposed to be reported to Council on 29 June 2016.

 


 

Strategy Element:       Performance Indicators

 

Actions

Action Owner

Action Due Date

Management Comments

1.       Ongoing quarterly reporting to the Finance Advisory Committee and Council on Financial Sustainability Plan (FSP) outcomes.

Finance Manager

Quarterly

Progress Update (31 December 2015)

Reporting for quarter ended 31 December 2015 submitted to FAC on 18 February 2016.

 

Progress Update (31 March 2016)

Reporting for quarter ended 31 March 2016 submitted to FAC on 19 May 2016.

 

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

Finance Manager

Quarterly

Progress Update (31 March 2016)

September QBR report submitted to FAC meeting on 12 November 2015 and Council on 19 November 2015.

 

December QBR report submitted to FAC meeting on 18 February 2016 and Council on 25 February 2016.

 

March QBR report submitted to FAC Meeting on 12 May 2016 and Council on 19 May 2016.

 

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

Finance Manager

June 2016

Progress Update (31 December 2015)

Currently being assessed in conjunction with budgets bids received for the 2016/2017 budget.

 

Progress Update (31 March 2016)

Draft 2016/2017 Budget has been compiled and presented to Council on 28 April 2016.  Subject to further review at FAC Meeting on 12 May 2016.

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

Finance Manager

June 2016

Progress Update (31 March 2016)

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

 

 

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 FSP outcomes.

Finance Manager

June 2016

Progress Update (31 March 2016)

No action this quarter but to be included in the development of the 2016-2026 Long Term Financial Plan.

 

 

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

Finance Manager

June 2016

Progress Update (31 March 2016)

No action this quarter but to be included in the development of the 2016-2026 Long Term Financial Plan.

 

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.2

 

 

Report No. 5.2             Draft 2016/2017 Budget

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

File No:                        I2016/449

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

Council at its Ordinary Meeting held on 28 April 2016 through resolution 16-221 resolved to place the Draft 2016/2017 Operational Plan including the draft Statement of Revenue Policy comprising Budget Estimates, Rates and Charges, Borrowings and Fees and charges on public exhibition.

 

Part 4(d) of resolution 16-221 is requesting that any items considered by the Finance Advisory Committee at its meeting on 12 May 2016, in respect of the Draft 2016/2017 Budget Estimates, be referred as part of the staff briefing to the Council Strategic Planning Workshop to be held on 26 May 2016.

 

The purpose of this report is to provide the opportunity to the Finance Advisory Committee to review the Draft 2016/2017 Budget Estimates and to identify any items to be referred to the Councillor Strategic Planning Workshop.

 

 

RECOMMENDATION:

That the Finance Advisory Committee consider the Draft 2016/2017 Budget as adopted by Council for public exhibition, and list the following any items (if any) for consideration at  the Council Strategic Planning Workshop to be held on 26 May 2016, in accordance with Part 4(d) of resolution 16-221.

 

Attachments:

 

1        Report to Council 28 April 2016 - Draft 2016/2017 Operational Plan, I2016/38 , page 32  

2        Draft 2016/2017 Detailed Budget, E2016/28725 , page 43  

 

 

 


 

Report

 

Council at its Ordinary Meeting held on 28 April 2016 resolved:

 

16-221 Resolved:

 

1.   That Council adopt for exhibition the Draft 2016/2017 Operational Plan (including the draft Statement of Revenue Policy, comprising Budget Estimates, Rates and Charges, Borrowings and Fees and Charges).

 

2.   That the Draft 2016/2017 Operational Plan (including the draft Statement of Revenue Policy, comprising Budget Estimates, Rates and Charges, Borrowings and Fees and Charges) be placed on public exhibition for a period of 28 Days.

 

3 . That Councillors hold a workshop, at the Strategic Planning Workshop 26 May 2016 on the 2016/17 draft budget before it is reported to Council at 29 June 2016 meeting as part of the Report on the Operation Plan and Revenue Policy.

 

4. As a part of this workshop councillors receive a staff briefing on the following matters: 

a)    The operation and management of the Cavanbah Centre:

i)     The original business plan covering the ongoing operation and management of the facility

ii)    A financial analysis of the operational costs of running the centre since it opened

iii)    An analysis of the projected utilisation rates compared to actual utilisation rates for the centre since it opened

iv)   Any management plans to address the accumulated budget deficit experienced by the centre

 

b)    Market fees

 

c)    operational management of Vallances Road Sewage Treatment Plant including intended demolition costs

 

d)    Any items that may be referred from the Finance Advisory Committee Meeting on 12 May 2016.

 

Part 4(d) of resolution 16-221 is requesting that any items considered by the Finance Advisory Committee on 12 May 2016 in respect of the Draft 2016/2017 Budget Estimates be referred as part of the staff briefing to the Council Strategic Planning Workshop to be held on 26 May 2016.

 

The purpose of this report is to provide the opportunity to the Finance Advisory Committee to review the Draft 2016/2017 Budget Estimates and to identify any items to be referred to the Councillor Strategic Planning Workshop.

 

Provided at Attachment 1 to this report is the Council report presented to the Ordinary Meeting held on 28 April 2016, that refers to the Draft 2016/2017 Operational Plan, including the Draft 2016/2017 Budget Estimates. This Report is provided as background to the Draft 2016/2017 Budget Estimates endorsed by resolution 16-221  of Council for public exhibition.

 

Financial Implications

 

Provided at Attachment 2 is the detailed Draft 2016/2017 Budget Estimates as presented to Council as Attachment 3 to Report 13.1 to the 28 April 2016 Ordinary Council Meeting with one change. 

 

At the Ordinary Council Meeting held on 28 April 2016, it was identified that the standing Council resolution to fund the Street Cruise project in the Community Development Program Budget had not been included. 

 

This item has now been included as indicated in Attachment 2 to this report for $15,000 funded from the Community Development Reserve.  Funding has been identified in the 2015/2016 Budget Estimates and is proposed to be transferred to the Community Development Reserve as part of the 31 March 2016 Quarter Budget Review. The Report on the 31 March 2016 Quarter Budget Review is also being considered by the Finance Advisory Committee at this Meeting.

 

The proposed Draft 2016/2017 Budget as detailed at Attachment 2 to this report is still presented as a balanced budget result.

 

Statutory and Policy Compliance Implications

 

In respect of the Draft 2016/2017 Operational Plan, Council must comply with the provisions of Section 405 of the Local Government Act 1993 as described below concerning the adoption of an Operational Plan.

405   Operational plan

“(1)  A council must have a plan (its operational plan) that is adopted before the beginning of each year and details the activities to be engaged in by the council during the year as part of the delivery program covering that year.

 

(2)  An operational plan must include a statement of the council’s revenue policy for the year covered by the operational plan. The statement of revenue policy must include the statements and particulars required by the regulations.

 

(3)  A council must prepare a draft operational plan and give public notice of the draft indicating that submissions may be made to the council at any time during the period (not less than 28 days) that the draft is to be on public exhibition. The council must publicly exhibit the draft operational plan in accordance with the notice.

 

(4)  During the period of public exhibition, the council must have for inspection at its office (and at such other places as it may determine) a map that shows those parts of its area to which each category and sub-category of the ordinary rate and each special rate included in the draft operational plan applies.

 

(5)  In deciding on the final operational plan to be adopted, a council must consider any submissions that have been made concerning the draft plan.

 

(6)  The council must post a copy of its operational plan on the council’s website within 28 days after the plan is adopted.”

 

The specific statements required by Council to be disclosed as part of its Revenue Policy are determined by Clause 201 of the Local Government (General) Regulation 2005 as follows:

 

201 Annual statement of council’s revenue policy

 

“(1)    The statement of a council’s revenue policy for a year that is required to be included in an operational plan under section 405 of the Act must include the following statements:

 

(a) a statement containing a detailed estimate of the council’s income and expenditure,

 

          (b) a statement with respect to each ordinary rate and each special rate proposed to be levied,

 

Note: The annual statement of revenue policy may include a note that the estimated yield from ordinary rates is subject to the specification of a percentage variation by the Minister if that variation has not been published in the Gazette when public notice of the annual statement of revenue policy is given.

 

(c) a statement with respect to each charge proposed to be levied,

 

(d) a statement of the types of fees proposed to be charged by the council and, if the fee concerned is a fee to which Division 3 of Part 10 of Chapter 15 of the Act applies, the amount of each such fee,

 

(e) a statement of the council’s proposed pricing methodology for determining the prices of goods and the approved fees under Division 2 of Part 10 of Chapter 15 of the Act for services provided by it, being an avoidable costs pricing methodology determined by the council in accordance with guidelines issued by the Director-General,

 

(f) a statement of the amounts of any proposed borrowings (other than internal borrowing), the sources from which they are proposed to be borrowed and the means by which they are proposed to be secured.

 

(2)     The statement with respect to an ordinary or special rate proposed to be levied must include the following particulars:

 

(a) the ad valorem amount (the amount in the dollar) of the rate,

 

(b) whether the rate is to have a base amount and, if so:

 

(i) the amount in dollars of the base amount, and

 

(ii) the percentage, in conformity with section 500 of the Act, of the total amount payable by the levying of the rate, or, in the case of the rate, the rate for the category or sub-category concerned of the ordinary rate, that the levying of the base amount will produce,

 

(c) the estimated yield of the rate,

 

(d) in the case of a special rate-the purpose for which the rate is to be levied,

 

(e) the categories or sub-categories of land in respect of which the council proposes to levy the rate.

 

(3)     The statement with respect to each charge proposed to be levied must include the following particulars:

 

(a) the amount or rate per unit of the charge,

 

(b) the differing amounts for the charge, if relevant,

 

(c) the minimum amount or amounts of the charge, if relevant,

 

(d) the estimated yield of the charge,

 

(e) in relation to an annual charge for the provision by the council of coastal protection services (if any)-a map or list (or both) of the parcels of rateable land that are to be subject to the charge.

 

(4)     The statement of fees and the statement of the pricing methodology need not include information that could confer a commercial advantage on a competitor of the council. “

 

 

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 1

Report No. 13.1           Public Exhibition - Draft 2016/17 Operational Plan, including Statement of Revenue Policy

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

Trish Kirkland, Manager Governance Services

File No:                        I2016/38

Theme:                         Corporate Management

                                      Governance Services

 

 


Summary:

 

The preparation of Council’s annual Operational Plan, including Statement of Revenue Policy (comprised of Budget Estimates, Rates and Charges, Borrowings and Fees and Charges) is regulated under the Integrated Planning and Reporting Framework requirements legislated by the Local Government Act 1993 (Sections 402 to 406). Management, in consultation with the elected Council, have developed the 2016/2017 draft Operational Plan (including the Statement of Revenue Policy comprised of Budget Estimates, Rates and Charges, Borrowings and Fees and Charges).

 

This report recommends placing the documents, subject to any amendments, on public exhibition for not less than 28 days.

 


  


 

 

RECOMMENDATION:

1.       That Council adopt for exhibition the Draft 2016/2017 Operational Plan (including the draft Statement of Revenue Policy, comprising Budget Estimates, Rates and Charges, Borrowings and Fees and Charges).

 

2.       That the Draft 2016/2017 Operational Plan (including the draft Statement of Revenue Policy, comprising Budget Estimates, Rates and Charges, Borrowings and Fees and Charges) be placed on public exhibition for a period of 28 Days.

 


Attachments:

 

1        Draft 2016-2017 Operational Plan and Budget, E2016/18867 

2        Draft Fees and Charges 2016-2017, E2016/25572 

3        Draft 2016/2017 Budget Estimates (detailed), E2016/24995 

 

 



 

Report

 

The preparation of Council’s annual Operational Plan (including the draft Statement of Revenue Policy, comprising Budget Estimates, Rates and Charges, Borrowings and Fees and Charges) is regulated under the Integrated Planning and Reporting Framework requirements legislated by the NSW State Government into the Local Government Act 1993 (Sections 402 to 406).

 

The requirements of the Integrated Planning and Reporting mandate that Council must develop:

 

·    A ten year Community Strategic Plan

·    A four year Delivery Program

·    A one year Operational Plan

·    Resourcing strategies to support the above Plans including a ten year Long Term Financial Plan, four year Workforce Plan and ten year Asset Management Plan

 

An Operational Plan in accordance with Section 405 (2) of the Local Government Act must include the Council’s Statement of Revenue Policy for the financial period covered by the Operational Plan. The information that needs to be included in the Statement of Revenue Policy is defined in Clause 201 of the Local Government (General) Regulation 2005.

 

Management, in consultation with the elected council, have developed the 2016/2017 draft Operational Plan, including the draft Statement of Revenue Policy comprising the draft Budget Estimates, Rates and Charges, Borrowings and Fees and Charges.  The documents have been prepared in the context of the Office of Local Government’s Fit for the Future program and the adopted Council Improvement Plan for 2016/2017 onwards, and designed to reflect the new organisational structure.

 

It is proposed to publicly exhibit the documents for the required 28 days from Thursday, 5 May 2016 to Thursday, 14 June 2016.

 

The Draft 2016/2017 Operational Plan, including the Statement of Revenue Policy which is comprised of Budget Estimates, Rates and Charges is contained at Attachment 1.  The Draft 2016/2017 Fees and Charges document is contained at Attachment 2. Provided at Attachment 3 is the Draft 2016/2017 Budget Estimates in detailed form for the information and consideration of Councillors.  Given the new format of the Operational Plan proposed for the 2016/2017 financial year, which contains the summarised budget information, it is not proposed to publish the document contained at Attachment 3 for public exhibition.

 

As a general comment on all the documents presented they are still in draft form and may require further adjustment and/or amendments pending any other decisions of Council at this Ordinary Meeting, prior to these Plans being finalised for public exhibition.

 

It is expected the documents will be formally adopted by Council at an Extraordinary Meeting to be held on 29 June 2016 following the required Public Exhibition period of 28 days (refer Section 405(3) of the Local Government Act 1993).

 

1.       Draft Operational Plan

 

As part of council’s commitment to incrementally improve the Integrated Planning and Reporting suite of documents, the Draft 2016/17 Operational Plan has been compiled by the directorates and prepared with an increased focus as indicated at Attachment 1 on:

–    Inclusion of the Statement of Revenue Policy, comprising the Budget Estimates, Borrowings, and Rates and Charges

–    Improved and integrated format for community consumption

–    Less mundane or day-to-day actions

–    More new initiatives, improvements, the Financial Sustainability Project Plan priorities, and appropriate alignment with the adopted Council Improvement Plan under Fit for the Future program.

–    Better integration with the 4-year Delivery Program Principal Activities, the Budget Programs, and alignment with the new organisational structure

–    Reduction in the volume and density of text

–    Improved language for community use

–    Improved measures for clarity and greater accountability in future progress reporting to the community

 

The structure of the draft 2016/17 Operational Plan follows that agreed in the 2014/15 review, following the revision of the 2013-2017 Delivery Program.  However, its format and presentation has been improved this year for better community engagement and use. 

 

Draft 2016/2017 Statement of Revenue Policy

 

·    Draft Budget Estimates

 

The Draft 2016/2017 Statement of Revenue Policy is based on the 2015/2016 budget reviewed at 31 December 2015 with various changes to reflect the increased price of service delivery across all programs developed from the input received from each Council Directorate.  The budget document is also based further on the revised Organisation Structure as it has been implemented.

 

The Draft of 2016/2017 Budget Result on a Consolidated (All Funds) basis forecast a balanced result with the details of that result being included below at Table 1.

 

Table 1 – Forecast Budget Result 2016/2017 Consolidated (All Funds)

 

Item

Amount $

Operating Result

 

Operating Revenue

72,719,600

Less: Operating Expenditure

72,468,000

Operating Result – Surplus/(Deficit)

251,600

 

 

Funding  Result

 

 

 

Operating Result – Surplus/ (Deficit)

251,600

Add: Non cash expenses – Depreciation

12,515,100

Add: Capital Grants and Contributions

18,528,000

Add: Loan Funds Used

0

Add: Asset Sales

760,000

Less: Capital Works

(41,669,800)

Less: Loan Principal Repayments

(2,664,300)

Funding Result – Surplus/(Deficit) (Cash Movement)

(12,279,400)

Reserves Movement – Increase/(Decrease)

(12,279,400)

Overall Budget Result – Surplus/(Deficit) (Operating + Funding)

0

 

Table 1 indicates a forecasted balanced budget result and this relates to the General Fund.  The forecast General Fund Accumulated Surplus (Working Funds) position based on the draft budget included at Table 1 is outlined in Table 2 below:

 

Table 2 – Revised Forecast General Fund Accumulated Surplus (Working Funds)

 

Item

$

Forecast accumulated surplus to 30 June 2016 at 31 December 2015 Budget Review

919,100

Add: Estimated initial draft 2015/2016 budget result

0

Forecast accumulated surplus to 30 June 2016

919,100

 

In addition to Tables 1 and 2 above, budgeted financial statements incorporating and Operating Statement and Cash Flow Statement have been produced for the first time.  These financial statements replicating the format of Council’s Annual Financial Statements are included in Attachment 3.

 

To arrive at the Draft Budget Results outlined in Table 1 and Table 2 for the 2016/2017 financial year, Council’s revenue and operational expenses are expected to be derived from the following sources and allocated respectively as outlined in the graphs below:

 

 

 

In addition to the operational aspects of the proposed Draft 2016/2017 Budget Estimates, Council is proposing a capital works program of $41.670million. This amount includes $32.131million in the General Fund, $2.496million in the Water Fund and $5.306million in the Sewerage Fund. 

 

Significant capital works in the General Fund are outlined in Table 3 indicating projects greater then $100,000 in value:

 

Table 3 – Significant General Fund Capital Works Projects greater then $100,000

 

Budget Program

Description

Expenditure $

Local Roads and Drainage

Lawson St South Carpark extension to Railway Park

210,000

Local Roads and Drainage

Myocum Road Pavement Renewal

600,000

Local Roads and Drainage

Main Arm Road - Blind Mouth Causeway upgrade

380,100

Local Roads and Drainage

Bridges works subject to inspection

184,100

Local Roads and Drainage

O'Mearas Bridge

350,000

Local Roads and Drainage

Marine Parade Footpath at Wategoes

250,000

Local Roads and Drainage

South Golden Beach Drainage - Peter Street

203,000

Local Roads and Drainage

South Golden Beach Drainage - Robin Street

179,000

Local Roads and Drainage

Road Reseal Program

650,000

Local Roads and Drainage

Federal Drive Goonengerry Pavement Upgrade

730,000

Local Roads and Drainage

Broken Head Road

600,000

Local Roads and Drainage

Byron Bay Bypass

11,950,000

Local Roads and Drainage

Byron Bay Bypass Stage 2 Investigations

250,000

Local Roads and Drainage

Lawson/Massinger Street Roundabout

583,200

Local Roads and Drainage

Byron St Byron Bay

645,000

Local Roads and Drainage

Road Renewals North Shire (Roundhouse Funding)

2,688,800

Local Roads and Drainage

Clifford St Intersection with Broken Head Road

1,200,000

Local Roads and Drainage

Bayshore Drive Roundabout

2,500,000

Local Roads and Drainage

Parking Implementation

100,000

Roads & Maritime Services

Broken Head Road

311,000

Open Space and Recreation

Civic Improvements Byron Bay Town Centre

450,000

Open Space and Recreation

Sports Grounds Storage Sheds

100,000

Open Space and Recreation

Bangalow Weir

150,000

Open Space and Recreation

Shara Blvd Sportsfield Development

733,000

Open Space and Recreation

North Shire Works (Roundhouse Funding)

332,700

Waste Management

Resource Recovery Centre Expansion

150,000

First Sun Holiday Park

Cabin Upgrades

200,000

First Sun Holiday Park

Amenities/Camp Kitchen Refurbishment

230,000

Suffolk Beachfront Holiday Park

Cabins

540,000

Suffolk Beachfront Holiday Park

Amenities Block Replacement

350,000

Facilities Management

Suffolk Park Hall Upgrade

300,000

 

Total

28,099,900

 

In addition to the General Fund capital works projects listed in Table 3 above, there are also a number of other capital works projects that individually are below $100,000 but collectively equal another $4.031million.

 

In terms of overall capital works expenditure proposed in 2016/2017, the proportionate allocation is proposed by Budget Program as outlined in the graph below:

 

 

Further to the level of Capital Works expenditure proposed for 2016/2017, Council is also proposing to allocate new operating expenditure for non capital projects as outlined in Table 4 below:

 

Table 4 – New Operating Expenditure for Non-Capital Projects

 

Budget Program

Description

Expenditure $

People & Culture Services

Recruitment E-Services

10,000

Councillor Services

Council Election

210,000

Councillor Services

Councillor Equipment

30,000

Information Services

Process Mapping Software

21,600

Information Services

IT Strategic Plan Actions

275,000

Governance Services

Delegations Management

21,000

Community Development

Social Innovation & Entrepreneurship Education

5,000

Community Development

Disability Inclusion Planning

10,000

Emergency Services & Floods

North Byron FRMS&P (Net Cost)

60,000

Development & Certification

On Line Applications

45,000

Planning Policy & Natural Environment

Beach Scraping

53,000

Planning Policy & Natural Environment

Estuary CZMP

10,000

Planning Policy & Natural Environment

Employment Land Strategy

20,000

Planning Policy & Natural Environment

LEP & DCP Review

10,300

Economic Development

Business Retention and Expansion Survey

20,000

 

 

 

 

Total

800,900

 

Whilst this report to Council is concerned with the oncoming Operational Plan for the 2016/2017 financial year, Council also needs to consider its longer term financial projections.  In that regard, the long term financial projections currently do not include the following:

 

·   Direct linkage to any funding gap yet to be identified in Asset Management Service Plans which could require greater funding then current budget allocations.

 

·   Review current budget projections over the next nine financial years beyond 2016/2017 in order to update the Long Term Financial Plan.  Current expenditure predictions on a operational and capital basis are in excess of revenue sources identified.

 

The budget projections realistically still demonstrate the difficulty Council has absorbing additional costs without corresponding revenue.  It can only be emphasised that Council must consider carefully the long term implications on its finances, in any consideration to add a new asset/service. 

 

Subject to Council approving the Draft 2016/2017 Budget Estimates forming part of the Draft 2016/2017 Operational Plan it will need to revisit and update the Long Term Financial Plan (LTFP) for the period 2016/2017 to 2026/2027 including the provision of scenarios. 

 

Once Council has determined the Draft 2016/2017 Budget Estimates position, work on updating the Long Term Financial Plan (LTFP) will commence which will also require a review of the projected budget results for the following nine financial years subsequent to 2016/2017 in accordance with the adopted Council Improvement Plan under Fit for the Future.   Further work is also proposed to be undertaken to incorporate Council’s progress against the Fit for the Future benchmarks projected for the 2016/2017 financial year.

 

·    Draft General Land Rates and Charges

 

Ordinary rates have been increased by 1.8% in accordance with the IPART determination for 2016/2017 which forms the basis of the budget result presented.   The proposed rating structure for 2016/2017 is at this stage as outlined in the Statement of Revenue Policy in Attachment 1.

 

Importantly, Council has received new land valuations from the Valuer General to apply for the purposes of levying general land rates for the 2016/2017 financial year.  Utilising Council’s existing rating structure and yield differentials to the advalorem rate, this will alter the general land rates paid by the different rating categories compared with current yields.  Even though the total general land rate yield is only to increase by 1.80% as per the 2016/2017 determined rate peg, some ratepayers will see general land rate increases greater then 1.80% whilst other ratepayers may see decreases.  Land value is the determining factor for these results and is outside Council’s control.

 

On an average basis, indicative average general land rate changes are outlined in Table 5 below:

 

Table 5 – Average General Land Rates Comparison

 

Category

2015/2016 $

2016/2017 $

% Change

Residential

1,095.68

1,139.02

3.8%

Business Ordinary

2,026.66

2,071.32

2.2%

Business Byron CBD

4,814.96

4,437.19

-8.5%

Farmland

1,868.03

1,605.54

-16.3%

Overall

1,276.32

1,298.83

1.8%

 

In terms of the changes to rateable land values following the revaluation by the Valuer General, this is outlined by Rating Category in Table 6 below:

 

Table 6 – Rateable Land Values Changes by Rating Category

 

Category

2015/2016 Value $

2016/2017 Value $

% Change

Residential

4,662,309,104

6,114,888,476

31.1%

Business Ordinary

482,686,104

620,779,765

28.6%

Business Byron CBD

287,557,919

331,865,804

15.4%

Farmland

472,889,295

510,767,770

8.0%

Whilst overall rateable land value has increased by 21% compared to the land values used for rating in the 2015/2016 financial year, as outlined in the different rating categories above in Table 6, the valuation increases in Residential and Business Ordinary rating categories have increased significantly more.

 

Other changes to charges include:

 

·   Waste charges are proposed to be amended following further revision to proposed service types and revenue requirements for both domestic and non domestic waste.  The Waste Operations charge is proposed to be increased by $35.00 or doubled to $70.00 but there is a proposal to reduce the domestic waste charge by $20.00 so the net increase for most customers is likely around $15.00 in terms of domestic waste.

 

·   Standard Water and Sewerage charges are proposed to be increased by 2% each respectively and then the best practice water and sewerage guidelines applied.

 

·   Storm water charges will not change as this is a legislated charge.

 

·    Draft Fees and Charges

 

The 2016/17 Fees and Charges have been reviewed by respective program managers and included at Attachment 2.  Where possible, fees have been altered/increased to reflect the following specific changes:

 

·    Increases in the Consumer Price Index (CPI)/Indexation assumed at 1.8%.

 

·    Review of fees and charges including benchmarking and where possible introduction of new fees to assist Council generate additional/enhanced revenue as themed by its Financial Sustainability Project Plan.

 

·      The Office of Local Government are yet to determine the fee to apply for Section 603 Certificates or the Statutory Interest Rate to apply for overdue rates and charges.  Once the determination has been advised, it is proposed Council apply the maximum amounts advised in respect of both items.

 

For the 2016/2017 financial year, the Draft Fees and Charges are in a new format as produced by new fees and charges software acquired by Council to manage its fees and charges.  The revised format is designed to make the document easier to use and will enable publication on Council’s website once formally adopted.

 

3.       Community Consultation

 

The Annual suite of Integrated Planning and Reporting documents will be placed on public exhibition for a period of no less than 28 days seeking submissions from the community. 

 

Financial Implications[m1] 

 

Council in the preparation of its Operational Plan is required to include a number of statements in relation to its Revenue Policy for 2016/2017.  This includes a statement containing the draft estimate of Council’s Income and Expenditure or Budget for this period.  The other statements identified in Clause 201 of the Local Government (General) Regulation 2005 are in the main dependant upon the rate pegging limits approved by the Minister for Local Government (now the Independent Pricing and Regulatory Tribunal (IPART)), any application for a special rate variation and Council’s decisions in relation to expenditure, income and the associated fees and charges.

 

The assumptions/parameters used in preparing the Draft 2016/2017 Budget Estimates include the following:

 

·    Rate peg increase 1.8% as announced by IPART.

·    Growth in rateable assessments of 1%.

·    Indexation of expenditure limited to 0.8% to assist in deriving a 1% efficiency gain.

·    Allowance of the 2.8% pay increase applicable in 2017/2018 under the Local Government (State) Award 2014.

·    No new loan borrowings proposed for 2016/2017.

·    Interest on investments around 3% plus active management of the investment portfolio to keep it short around three month maturities to take opportunities of market offerings.

·    Reflective of the Actions contained in the Draft 2015/2016 Operational Plan.

 

The financial forecast of the General Fund has been discussed in detail earlier in this report, however it is suggested Council needs to look at its longer term financial position, especially in the area of infrastructure maintenance and renewal in comparison to other areas of service provided.   This is especially so given the requirements stipulated by the NSW State Government as part of its ‘Fit for the Future’ reform.

 

The Water and Sewer budgets have been prepared with pricing to generate the required revenue to repay debt (Sewer), to address capital works and ongoing maintenance works in these Funds. 

 

Statutory and Policy Compliance Implications[m2] 

 

In respect of the Draft 2016/2017 Operational Plan, Council must comply with the provisions of Section 405 of the Local Government Act 1993 as described below concerning the adoption of an Operational Plan.

405   Operational plan

“(1)  A council must have a plan (its operational plan) that is adopted before the beginning of each year and details the activities to be engaged in by the council during the year as part of the delivery program covering that year.

 

(2)  An operational plan must include a statement of the council’s revenue policy for the year covered by the operational plan. The statement of revenue policy must include the statements and particulars required by the regulations.

 

(3)  A council must prepare a draft operational plan and give public notice of the draft indicating that submissions may be made to the council at any time during the period (not less than 28 days) that the draft is to be on public exhibition. The council must publicly exhibit the draft operational plan in accordance with the notice.

 

(4)  During the period of public exhibition, the council must have for inspection at its office (and at such other places as it may determine) a map that shows those parts of its area to which each category and sub-category of the ordinary rate and each special rate included in the draft operational plan applies.

 

(5)  In deciding on the final operational plan to be adopted, a council must consider any submissions that have been made concerning the draft plan.

 

(6)  The council must post a copy of its operational plan on the council’s website within 28 days after the plan is adopted.”

 

The specific statements required by Council to be disclosed as part of its Revenue Policy are determined by Clause 201 of the Local Government (General) Regulation 2005 as follows:

 

201 Annual statement of council’s revenue policy

 

“(1)    The statement of a council’s revenue policy for a year that is required to be included in an operational plan under section 405 of the Act must include the following statements:

 

(a) a statement containing a detailed estimate of the council’s income and expenditure,

 

          (b) a statement with respect to each ordinary rate and each special rate proposed to be levied,

 

Note: The annual statement of revenue policy may include a note that the estimated yield from ordinary rates is subject to the specification of a percentage variation by the Minister if that variation has not been published in the Gazette when public notice of the annual statement of revenue policy is given.

 

(c) a statement with respect to each charge proposed to be levied,

 

(d) a statement of the types of fees proposed to be charged by the council and, if the fee concerned is a fee to which Division 3 of Part 10 of Chapter 15 of the Act applies, the amount of each such fee,

 

(e) a statement of the council’s proposed pricing methodology for determining the prices of goods and the approved fees under Division 2 of Part 10 of Chapter 15 of the Act for services provided by it, being an avoidable costs pricing methodology determined by the council in accordance with guidelines issued by the Director-General,

 

(f) a statement of the amounts of any proposed borrowings (other than internal borrowing), the sources from which they are proposed to be borrowed and the means by which they are proposed to be secured.

 

(2)     The statement with respect to an ordinary or special rate proposed to be levied must include the following particulars:

 

(a) the ad valorem amount (the amount in the dollar) of the rate,

 

(b) whether the rate is to have a base amount and, if so:

 

(i) the amount in dollars of the base amount, and

 

(ii) the percentage, in conformity with section 500 of the Act, of the total amount payable by the levying of the rate, or, in the case of the rate, the rate for the category or sub-category concerned of the ordinary rate, that the levying of the base amount will produce,

 

(c) the estimated yield of the rate,

 

(d) in the case of a special rate-the purpose for which the rate is to be levied,

 

(e) the categories or sub-categories of land in respect of which the council proposes to levy the rate.

 

(3)     The statement with respect to each charge proposed to be levied must include the following particulars:

 

(a) the amount or rate per unit of the charge,

 

(b) the differing amounts for the charge, if relevant,

 

(c) the minimum amount or amounts of the charge, if relevant,

 

(d) the estimated yield of the charge,

 

(e) in relation to an annual charge for the provision by the council of coastal protection services (if any)-a map or list (or both) of the parcels of rateable land that are to be subject to the charge.

 

(4)     The statement of fees and the statement of the pricing methodology need not include information that could confer a commercial advantage on a competitor of the council. “


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 2


 


 


 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           5.2 - Attachment 2


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 2


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           5.2 - Attachment 2


 


 


 


 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.2 - Attachment 2


 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.3

 

 

Report No. 5.3             Budget Review - 1 January 2016 to 31 March 2016

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

File No:                        I2016/460

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 31 March 2016.

 

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 Office 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 (#E2016/28781) which includes the following results in the 31 March 2016 Quarterly Review of the 2015/2016 Budget:

 

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

b)      General Fund - $4,184,500 increase in reserves

c)      Water Fund - $2,116,000 increase in reserves

d)      Sewerage Fund - $4,794,100 increase 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 31 March 2016.

 

Attachments:

 

1        Budget Variations for General, Water and Sewerage Funds, E2016/28779 , page 119  

2        Itemised Listing of Budget Variations for General, Water and Sewerage Funds, E2016/28781 , page 183  

3        Integrated Planning and Reporting Framework (IP&R) required Quarterly Review Statement, E2016/28780 , page 189  

 

 


 

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 half of the 2015/2016 financial year.  This report considers the March 2016 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, the September review, resolutions between October and December, the December review, resolutions between January and March and the revote (or adjustment for this review) and then the revised position projected for 30 June 2016 as at 31 March 2016.

 

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 54 to 64 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 31 March 2016 of each reserve to show a total cash position of reserves with any difference between that position and total cash and investments held as available cash and investments.  It should be recognised that the figure is at a point in time and may vary greatly in future quarterly reviews pending on cash flow movements.

 

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

 

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

 

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

 

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

 

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

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

 

CONSOLIDATED RESULT

 

The following table provides a summary of the overall Council budget on a consolidated basis inclusive of all Funds budget movements for the 2015/2016 financial year projected to 30 June 2016 but revised as at 31 March 2016.

 

 

2015/2016 Budget Review Statement as at 31 March 2016

Original Estimate (Including Carryovers)

 1/7/2015

 

Adjustments to March 2016 including Resolutions

 

Proposed March 2016 Review Revotes

 

Revised Estimate 30/6/2016 at 31/03/2016

Operating Revenue

72,162,100

2,283,000

204,800

74,649,900

Operating Expenditure

78,507,400

123,100

282,400

78,912,900

Operating Result – Surplus/Deficit

(6,345,300)

2,159,900

(77,600)

(4,263,000)

Add: Capital Revenue

10,726,000

(3,669,700)

3,723,000

10,779,300

Change in Net Assets

4,380,700

(1,509,800)

3,645,400

6,516,300

Add: Non Cash Expenses

14,586,500

(2,071,400)

0

12,515,100

Add: Non-Operating Funds Employed

4,100,000

1,040,700

(913,000)

4,227,700

Subtract: Funds Deployed for Non-Operating Purposes

(43,048,100)

4,539,700

8,362,200

(30,146,200)

Cash Surplus/(Deficit)

(19,980,900)

1,999,200

11,094,600

(6,887,100)

Restricted Funds – Increase / (Decrease)

(19,980,900)

1,999,200

11,094,600

(6,887,100)

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.  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 of the estimated position as at 31 March 2016:

 

Opening Balance – 1 July 2015

$919,100

Plus original budget movement and carryovers

0

Council Resolutions July – September Quarter

0

September Review

0

Council Resolutions October – December Quarter

0

December Review

0

Council Resolutions January – March 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 not changed (including budget movements) as a result of this budget review. The proposed budget changes that have impacted on this result have been highlighted in Attachment 1 and summarised further in this report below.

 

Council Resolutions

 

There were no Council resolutions during the January to March 2016 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

0

0

0

Corporate & Community Services

119,500

180,000

(60,500)

Infrastructure Services

(3,908,700)

(3,908,700)

0

Sustainable Environment & Economy

1,105,900

1,045,400

60,500

Total Budget Movements

(2,683,300)

(2,683,300)

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:

 

Corporate and Community Services

 

·    In the Councillor Services program, it is proposed to reduce the professional development budget by $10,000 and transfer to the Community Development reserve to use for the Wellbeing project in 2016/17.

 

·    In the Financial Services program, it is proposed to allocate a budget of $23,900 for the revaluation of Councils operational land and building assets.  This can be funded through the asset revaluation reserve.

 

·    In the Governance Services Program it is proposed to decrease the Business continuity budget by $20,000 and transfer this to the Community Development reserve to use for the Wellbeing project in 2017.

 

·    In the Community Development Program, a budget of $50,000 is required for an Indigenous Language Arts Project that Council has received grant funding.

 

·    In the Sandhills program, it is proposed to increase capital works by $18,500 to allow for essential WHS works, funded through the childrens’ services reserve and to increase professional development, also funded from the childrens’ services reserve.

 

·    In the Library Services program, it is proposed to increase capital expenditure due to Council receiving the Local Priority grant.

 

Infrastructure Services

 

·    In the Asset Management program it is proposed to reduce the expenses for Lot 12 Bayshore Drive by $913,000 as these works will not be completed until 2016/17, along with the Station Street sub division ($220,000) and Lot 22 Mullumbimby ($10,000).

 

·    In the Local Roads and Drainage program, there are a significant number of adjustments outlined under Note 13 in the Budget Variations explanations section of Attachment 1. Further disclosure is included in the second and third pages of Attachment 2 under the budget program heading Local Roads and Bridges. 

 

·    In the Roads and Maritime Services program (RMS) it is proposed to decrease operating income and expenditure by $194,400 to bring the budget for various natural disaster works into line with approved funding from the Roads & Maritime Service (RMS).It is proposed to decrease capital works for additional costs on Tweed Valley Way by $200,000.  This is funded from an unexpended grant Council received upon handover of the old Pacific Highway in 2009.

 

·    In the Open Space and Recreation program, it is proposed to increase operating expenditure by $22,600 due to an increase in park maintenance.  It is proposed to decrease capital works by $95,600 due to works not being completed in 2015/16.

 

·    In the Quarry program, it is proposed to increase the income budget by $100,000 to reflect actual income received.  This will be transferred to the Quarry reserve.

 

·    In the Waste & Recycling program it is proposed to increase income by $52,000 to fund a domestic kerbside composition audit to determine results post implementation of the organics collection service.  It is also proposed to create a budget to improve garden organics recovery ($10,000) and create a budget for the public place bin audit ($20,000).  This audit will provide data and recommendations for the roll out of a public place recycling program.  These projects can be funded through unexpended grants.  It is also proposed to move part of the new landfill capacity budget ($13,400), Sustainable leachate ($48,100) and the New landfill ($90,000) to 2016/17 as they will not be spent in 2015/16.  An additional $10,000 is required to cover additional installation costs for RFID Chips that were not included in the original budget.

 

·    In the Facilities Management program it is proposed to increase the Byron Bay library budget by $49,100 to cover the shortfall of required works.  This can be funded from the Byron Bay Library reserve.

 

Sustainable Environment and Economy

 

·    It is proposed to increase income for developer contributions by $1,017,400.  Due to an increase in contributions, this budget adjustment brings the budget into line with actual contributions received. The additional contributions Council has received will be externally restricted in the respective Section 94 developer contribution reserve. 

 

·    In the Planning Policy and Natural Environment Program, the budget is to be amended for income for the CZMP ($55,500) and adjustments to income and expenditure for applicant funded LEP/DCP’s. 

 

·    In the Environment & Compliance program, it is proposed to increase expenditure for the Responsible Pet Ownership ($15,000) program funded through a CAWI grant ($5,000), an OLG grant ($5,100) and a reduction in the public education budget ($4,800).

 

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

Resolutions October -  December Quarter – increase / (decrease)

0

December Quarterly Review Adjustments – increase / (decrease)

211,400

Resolutions January - March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

20,000

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

(64,700)

Estimated Reserve Balance at 30 June 2016

$2,513,200

 

 

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

Resolutions October -  December Quarter – increase / (decrease)

(500,000)

December Quarterly Review Adjustments – increase / (decrease)

1,000,000

Resolutions January - March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

2,096,000

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

(1,403,500)

Estimated Reserve Balance at 30 June 2016

$9,414,100

 

Movements for Water Fund can be seen in Attachment 1 with a proposed estimated increase to reserves (including S64 Contributions) overall of $2,115,100 from the 31 March 2016 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)

Resolutions October -  December Quarter – increase / (decrease)

0

December Quarterly Review Adjustments – increase / (decrease)

(1,106,800)

Resolutions January - March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

640,000

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

1,593,500

Estimated Reserve Balance at 30 June 2016

$6,274,800

 

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

Resolutions October -  December Quarter – increase / (decrease)

0

December Quarterly Review Adjustments – increase / (decrease)

0

Resolutions January - March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

0

Forecast Reserve Movement for 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

Resolutions October -  December Quarter – increase / (decrease)

(500,000)

December Quarterly Review Adjustments – increase / (decrease)

1,810,000

Resolutions January - March Quarter – increase / (decrease)

0

March Quarterly Review Adjustments – increase / (decrease)

4,154,100

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

1,807,000

Estimated Reserve Balance at 30 June 2016

$8,035,000

 

Movements for the Sewerage Fund can be seen in Attachment 1 with a proposed estimated overall increase to reserves (including S64 Contributions) of $4,793,200 from the 31 March 2016 Quarter Budget Review.

 

Legal Expenses

 

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

 

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

 a fund basis as at 31 March 2016.

 

Total Legal Income & Expenditure as at 31 March 2016

 

 

Program

2015/2016

Budget ($)

 

Actual ($)

Percentage To Revised Budget

Income

 

 

 

Legal Expenses Recovered

0

1,020

0%

Total Income

0

1,020

0%

 

 

 

 

Expenditure

 

 

 

General Legal Expenses

200,000

140,048

70%

Total Expenditure General Fund

200,000

140,048

70%

 

Note: The above table does not include costs incurred by Council in proceedings after 31 March 2016 or billed after this date. 

 

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)

(100,000)

Less Road Reconstruction Works (Various – Original Budget)

(61,000)

Estimated Reserve Balance at as at 31 March 2016

$618,100

 

Financial Implications

 

The 31 March 2016 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 31 March 2016 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 has remained the same 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                                 5.3 - Attachment 1


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.3 - Attachment 2


 


 


 


 


 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 5.3 - Attachment 3


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

   


 [m1]Detail all potential finance issues including expenses, funding sources, capital, recurrent & any staff resources.

Q. What are the costs of options to Council, and where would the funds come from?

 [m2]Detail compliance with statutory requirements & all relevance to Council policies. Q. What legislation is relevant and how?