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, 18 August 2016

Time

2.00pm

 

 

 

 

 

 

 

 

 

 

Mark Arnold

Director Corporate and Community Services                                                                    I2016/906

                                                                                                                                    Distributed 15/08/16

 

 


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 12 May 2016

3.2       Extraordinary Finance Advisory Committee Meeting held on 21 June 2016

4.    Business Arising From Previous Minutes

5.    Staff Reports

Corporate and Community Services

5.1       2015/16 Financial Sustainability Plan - Update on the Action Implementation Plan as at 30 June 2016........................................................................................................................................... 4

5.2       Carryovers for Inclusion in 2016/2017 Budget................................................................ 34

5.3       Council Budget Review - 1 April 2016 to 30 June 2016................................................. 44   

6.    Late Reports

6.1       Draft 2016-2026 Long Term Financial Plan.................................................................. 144

 


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 Plan - Update on the Action Implementation Plan as at 30 June 2016

Directorate:                 Corporate and Community Services

Report Author:           Mark Arnold, Director Corporate and Community Services

File No:                        I2016/750

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 30 June 2016.

 

  

 

RECOMMENDATION:

That the update report to 30 June 2016 on the 2015/2016 Financial Sustainability Project Plan Action Implementation Plan (E2016/52089) be received and noted.

 

Attachments:

 

1        Action Implementation Plan update as at 30 June 2016, E2016/52089 , page 7  

 

 

Sustainable icon TICK,Sustainable icon TICK

 


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 30 June 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.  It was previously reported to the Finance Advisory Committee in previous updates throughout the 2015/2016 financial year that no financial outcomes have been realised up to the 31 March 2016 Quarter Budget Review.

 

In terms of actual financial outcomes, and subject to another report to this Meeting of the Finance Advisory Committee is the 30 June 2016 Quarter Budget Review.  This has provided an opportunity to realise an indicative financial outcome for the 2015/2016 financial year including the update of the register that tracks the FSP outcomes.  During the 2015/2016 financial year, the following FSP outcomes were achieved:

 

1.   The realisation of $3,800,000 from the sale of the Roundhouse subdivision that is allocated for works in the North of the Shire during 2016/2017 following community consultation and Council determination of the projects.  This was part of the Land Review and Property Development Chapter of the FSP.

 

2.   Realisation of and additional $900,800 in paid parking revenue net of costs over the adopted 2015/2016 budget estimates for paid parking.  These funds have been allocated to the Paid Parking Reserve – Council and Crown Reserve – Paid Parking to provide funding for future works.  The outcome of paid parking was a component of Council’s Council Improvement Plan (CIP) submission as part of its Fit for the Future response to the NSW Government and is part of the Revenue Review chapter of the FSP.

 

3.   Realisation of $21,400 in software licence savings that are reallocated to assist with the implementation of the Information Technology Strategic Plan actions. This outcome is part of the Expenditure Review chapter of the FSP.

 

4.   Realisation of savings in Councillor and Governance Services Budget programs totalling $30,000 that have been reallocated to the Community Development Budget Program for 2016/2017 to undertake the Wellbeing Indicators project.  This outcome is part of the Expenditure Review chapter of the FSP.

 

5.   Early repayment of Waste loan no 40 due in 2018 and Sewerage loan no 44 due in 2024 funded from available reserves. Over the remaining life of these loans including early repayments costs, Council will save a total of $90,000 from the early repayment.  This is part of the Expenditure Review chapter of the FSP.  It also enables Council to reallocate revenue derived in Waste and Sewerage over time to other purposes in those areas that would have otherwise been allocated to loan interest and principal repayments.

 

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 2016/2017 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 (30 June 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 (30 June 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 (30 June 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 (30 June 2016)

The 2015/16 FSP was adopted by Council at its ordinary meeting held on 10 December 2015 (refer Resolution 15-606). This is the third 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 (30 June 2016)

Any identified expenditure savings are as detailed in the separate June 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.

 

Progress Update (30 June 2016)

See Action item 4 under Policy and Decision Making.


 

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.

 

Progress Update (30 June 2016)

The Internal Working Groups have continued to operate and report to the Executive Team. Reports are included in both the internal and external weekly Critical Project Status Updates.

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.

 

Progress Update (30 June 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.

 

Progress Update (30 June 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.

 

Progress Update (30 June 2016)

During the quarter Council repaid in advance two loans in the Waste and Sewer areas.  The Waste loan was paid out two years in advance and the sewer loan eight years in advance.  Cumulative savings will be $90,000 over the life of the two loans which will enable existing waste and sewer revenue to be applied to other items or projects in those areas instead of being tied to repaying these loans.

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.

 

Progress Update (30 June 2016)

During the lead up to the 2 July 2016 Federal Election, Council lobbied prospective candidates regarding a series of projects for Byron Shire Council seeking a commitment for funding.  These were projects that are either close to or are ‘shovel ready’.  Council also issued a media release during the election campaign effectively reminding the major political parties of Byron Shire issues and the lack of attention that the major parties were paying to the Council area.

 

 

 


 

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.

 

Progress Update (30 June 2016)

The EPA Licence for Waste Processing was received at the end of June. Following finalization of all the pre works documentation and site controls, Brisbane Screenings will complete the processing.

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.

 

Progress Update (30 June 2016)

The construction tender closed on 30 June.  Construction tenders have been assessed and the recommendation report will go to Council on 4 August.  Concurrently, documents will be reviewed by LAC.  The power and telephone designs will be completed by external specialist consultants during the LAC approval and construction tender period.

 

NCCH have submitted an offer to purchase the land, which is being assessed.

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.

 

Progress Update (30 June 2016)

Planning: The Planning Proposal public exhibition closed 2 June 2016 with eight submissions received.  Council received late advice from OEH that they require further information before the planning proposal is finalised.  Work has commenced on preparing this information for OEH’s consideration.  It is expected that a report on the final Planning Proposal will be presented to Council at the 25 August 2016 meeting, pending OEH’s further advice.

 

Infrastructure: Tree treatment in Transitional Slopes (Stage 1) complete. Stage 2 Areas to be assessed under Pt4 or Pt5 of Env&Planning Assessment Act have been identified. Treatment methods to be defined.  Shelter and landing fee meter installed and operational.

 

Leasing and Licensing: The Agreement to Lease and lease documents for the Tyagarah Hall have been signed by the successful applicant.  DA for associated activities has been lodged with Council.

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.

 

Progress Update (30 June 2016)

Progress has been delayed to match the flood modelling scope with the Residential Settlement Strategy.

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.

 

Progress Update (30 June 2016)

Verbal advice has been received from RMS that any sale of the Yaran Rd land will be on a competitive basis.

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.

 

Progress Update (30 June 2016)

Planning Proposal currently being amended prior to being lodged.

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.

 

Progress Update (30 June 2016)

The EOI has been issued.  A detailed project plan has been developed.

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.

 

Progress Update (30 June 2016)

The Demand Study by Creative Nine and DPWS status report reported to the Executive.  It is anticipated the new Council will again consider the issue of future use.

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.

 

Progress Update (30 June 2016)

Consultants EPIC are finalizing 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.

 

Progress Update (30 June 2016)

Advice from DoP indicates that further rural residential in this location will not be supported.  Informed options development is now possible.

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.

 

Progress Update (30 June 2016)

The Rural Land Use Strategy has determined that rural residential is not viable in this location due to the proximity of both the STP and surrounding agricultural activity.

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.

 

Progress Update (30 June 2016)

Advice from DoP indicates that further rural residential in this location will not be supported.  Informed options development is now possible.

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.

 

Progress Update (30 June 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.

 

Progress Update (30 June 2016)

It may be years before resource recovery operations can viably be relocated from the ridge line.

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.

 

Progress Update (30 June 2016)

Plans for the scope of resource recovery operations in the adjacent Quarry will now need to be confirmed.

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.

 

Progress Update (30 June 2016)

Awaiting the valuation which was delayed by the need for survey data.

 


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.

 

Progress Update (30 June 2016)

Annual spend analysis to be conducted as at 30 June 2016 and reported to the Executive Team.  Further tools to automate this process to be developed pending the implementation of the 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.

 

Progress Update (30 June 2016)

Contract Management training was conducted for all key staff.

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.

 

Progress Update (30 June 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.

 

Progress Update (30 June 2016)

Draft framework was completed June, and will be presented to the Executive Team in late July 2016.  Implementation planning has commenced for roll out  in next financial year.

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.

 

Progress Update (30 June 2016)

The Procure-to-pay project has been defined and documented offering substantial productivity gains for council.   Implementation of the project is scheduled to commence early July 2016 and is listed as a priority on the IT Project program.

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.

 

Progress Update (30 June 2016)

P-Card trail implementation progressing – planning with the financial institution and internal processes being progressed by financial team.


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 (30 June 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 (30 June 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.

 

Progress Update (30 June 2016)

Council Policy 12/007 Business and Commercial Activities has been reviewed.  This policy was endorsed by the Executive Team to be one of the first policies reviewed.  This policy is proposed to be reported to Council to be repealed as the policy has never been enacted and has been superseded by the Financial Sustainability Plan.


 

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.

 

Progress Update (30 June 2016)

Nil for the quarter.

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.

 

Progress Update (30 June 2016)

a) Future management and development of the Tyagarah Aerodrome

·           Tree treatment in Transitional Slopes (Stage 1) complete.

·           Stage 2 Areas to be assessed under Pt4 or Pt5 of Env&Planning Assessment Act have been identified. Treatment methods to be defined.

·           Shelter and landing fee meter installed and operational.

·           The Planning Proposal public exhibition closed 2 June 2016 with eight submissions received.

·           Work has commenced on preparing additional OEH-requested information for their consideration.

·           Expected that a report on the final Planning Proposal will be presented to Council at the 25 August 2016 meeting, pending OEH’s further advice.

·           The Agreement to Lease and lease documents for the Tyagarah Hall have been signed by the successful applicant

·           DA for associated activities has been lodged with Council.

 

 

b) Development of Byron Bay Swimming Pool/Café

Council met with the responsible Minister on 2 August 2016 to discuss the outstanding issues. The meeting identified a number of actions for both Crown Lands and Council to progress and resolve the current the land tenure matters.

 

c) Redevelopment of the old Fletcher Street Library Building

The EOI has been issued.  A detailed project plan has been developed.

 


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).

 

Progress Update (30 June 2016)

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

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.

 

Progress Update (30 June 2016)

Volunteer celebration event held May 2015. Survey to all volunteers to gauge how Council can support and grow volunteerism. 

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.

 

Progress Update (30 June 2016)

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

 

Preliminary work has been undertaken with review of S355 Committee Guidelines in consultation with stakeholders to be reported to August 28th meeting of Council.

 

 


 

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.

 

Progress Update (30 June 2016)

Ongoing as reported above.

 


 

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.

 

Progress Update (30 June 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.

 

Progress Update (30 June 2016)

Consultants Assetic have completed the revaluation. A variation for the swimming pools was required.

 

APV have completed 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.

 

Progress Update (30 June 2016)

The SAMP will be completed by JRA and reported to the 2 June CIAC meeting.

 

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

 

Outcomes have been reported to an internal working group on the IP&R and SRV process. In addition a AM update report E2016/41279 was presented to ET.

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.

 

Progress Update (30 June 2016)

The improvement plan associated with the outcomes of the NSW Local Government Asset Management Audit Preparedness Audit is being progressed. It has been presented to ET and also CIAC as part of the SAMP.

 

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.

 

Progress Update (30 June 2016)

Work has commenced on the Special Rate Variation Application in accordance with the CIP.

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.

 

Progress Update (30 June 2016)

There has been a detailed view of S94 opportunities in the forward capital program included in the adopted 2016/17 budget. The new S64 plans were adopted by Council.

 

Grant opportunities continue to be progressed for bridges and roads. Grants are being pursued for the bus shelters.

 

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.

 

Progress Update (30 June 2016)

CIAC received a report on the SAMP on 2 June. Reports will continue to be provided to the CIAC.

 

A proposal to purchase a unique tool for predictive modelling from consultants Assetic has been approved.

 

Significant engagement is being planned as part of the SRV application process.

 

 


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.

 

Progress Update (30 June 2016)

Proposed capital works for the next 30 years for Water and Sewerage has been provided but not the overall Business Plans.  The updated capital works information will be included in a version of the 2016-2026 Long Term Financial Plan.

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.

 

Progress Update (30 June 2016)

It was not possible to provide the 2016-2026 Long Term Financial Plan to the 29 June 2016 Council Meeting.  It is proposed to provide a version of the 2016-2026 Long Term Financial Plan to the FAC Meeting to be held on 18 August 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.

 

Progress Update (30 June 2016)

Reporting for the quarter ended 30 June 2016 reported to the FAC on 18 August 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.

 

Progress Update (30 June 2016)

June QBR report submitted to FAC Meeting on 18 August 2016 and Council on 25 August 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.

 

Progress Update (30 June 2016)

Draft 2016/2017 Budget was considered adopted by Council on 29 June 2016 (Resolution: 16-348).

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 (30 June 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 (30 June 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 (30 June 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             Carryovers for Inclusion in 2016/2017 Budget

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

File No:                        I2016/878

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

This report is prepared to allow the Finance Advisory Committee  to consider and to recommend to Council the carryover Budget allocations for works and services, either commenced and not completed, or not commenced in the 2015/2016 financial year for inclusion in the 2016/2017 Budget Estimates.

 

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

 

This report identifies all the works and services recommended to be carried over from the 2015/2016 financial year to the 2016/2017 Budget Estimates. The report also identifies the funding for each recommended budget allocation carryover.

 

In compiling this report, the Financial Sustainability Plan (FSP) 2015/2016, namely Part 7 regarding ‘Policy and Decision Making’ has also been considered.

 

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

That the works and services, and the respective funding shown in Attachment 1 (#E2016/74385), Attachment 2 (#E2016/74388) and Attachment 3 (#E2016/74387) be carried over from the 2015/2016 financial year and that the carryover budget allocations be adopted as budget allocation revotes for inclusion in the 2016/2017 Budget Estimates.

 

 

Attachments:

 

1        Carryovers and funding for inclusion in 2016/2017 Budget - General Fund, E2016/74385 , page 39  

2        Carryovers and funding for inclusion in 2016/2017 Budget - Water Fund, E2016/74388 , page 42  

3        Carryovers and funding for inclusion in 2016/17 Budget - Sewerage Fund, E2016/74387 , page 43  

 

 


 

Report

 

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

 

This report identifies all the works and services to be carried over to the 2016/2017 Budget Estimates and the respective funding of each, relating to works and services not completed during the course of the 2015/2016 financial year. The specific details of all carryover works and services subject of this report are outlined for General Fund at Attachment 1, Water Fund at Attachment 2 and Sewer Fund at Attachment 3.

 

Financial Implications

 

The works and services included in Attachments 1, 2 and 3 are fully funded and have no impact on the General Fund Accumulated Surplus (Working Funds) position of Council or the 2016/2017 Budget Estimates result. As in previous years there is a significant amount (albeit less) of carryovers to be brought forward to the current financial year. Table 1 below provides a history of the value of carryovers in recent years with the proposed total carryovers for 2016/2017 $7,799,100 less then the carryovers related to the 2015/2016 financial year.  The Committee  may recall that there was an earlier assessment of carryovers was conducted before finalisation of the 2016/2017 Budget Estimates with them being included at that point.

 

Table 1 - Value of budget carryovers 2012/13 – 2016/17

 

Fund

2012/13 ($)

2013/14 ($)

2014/15 ($)

2015/16 ($)

2016/17 ($)

General

8,596,400

6,181,100

12,863,500

10,550,300

5,022,100

Water

579,800

1,150,300

586,200

1,671,900

729,900

Sewer

1,852,500

1,703,700

877,100

1,929,000

600,100

Total

11,028,700

9,035,100

14,326,800

14,151,200

6,352,100

 

General Fund

 

The value of works carried over to 2016/2017 for the General Fund are significantly less ($5,528,200) than that carried over for the 2015/2016 year.  Of the $5,022,100 of General Fund carryovers, approximately 55% ($2,780,400) is attributable to Local Roads and Drainage projects not completed in 2015/2016 to be carried forward to 2016/2017.

 

Special Rate funded community building maintenance and public toilet upgrades within the Facilities Management Program represent approximately 11% ($553,300) of the General Fund carryovers.  It is anticipated these works will be delivered by June 2017.

 

Water and Sewer Funds

 

Carryovers for the Water and Sewer Funds have decreased by $942,000 and $1,328,900 respectively compared to the carryover applicable for the 2015/2016 financial year. 

 

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

 

 

 

Table 2 – Schedule of Local Roads and Drainage Carryover works current status

 

Project

Carryover $

Project Status

Tweed Street Master Plan (Design Only)

120,000

Procurement of consultant in progress and will be completed in August 2016. Actual design works to be completed by November 2016.

Project Investigation & Planning

94,000

Works in progress and scheduled to be completed by November 2016.

Broken Head Road - Pavement Rehabilitation

10,600

Design development budget. Works funded in 2016/17 & 2017/18.

Parking Studies for Bang, Bruns & Mullum

28,900

Studies in progress and being completed with a staged delivery for Wategos, Mullumbimby, Bangalow and Brunswick Heads.

Rifle Range Road Intersection Upgrade

24,600

Interim works completed last financial year associated with demolition of rail overbridge. Design development for ultimate intersection to be done this financial year.

Marine Pde - Footpath

55,600

Design works in progress. Actual construction works scheduled for September to December 2016.

2008/09 Special Rate Funds - O'Meara's Bridge

39,100

Funds required for replacement of O’Meara’s Bridge

Bridges Capital Renewal Miscellaneous (From 44201)

185,000

Funds required for bridge replacements.

PAMP Construction

69,300

Works not finalised due to resignation of Traffic & Transport Planner. Will be completed in this financial year.

SGB Street Drainage Improvements

4,900

Design development in progress. Actual construction works funded separately and scheduled for implementation between September and November 2016.

Lighthouse Road, Byron Bay

20,000

Works not able to be started last financial year due to a lack of design development & investigation resources. Will be completed this financial year.

Federal Drive, Goonengerry, pavement upgrade

52,800

Design works now completed. Property acquisitions in progress.  Actual construction works scheduled for later this calendar year, subject to land acquisition.

Bus Shelter Upgrades

24,800

Grant is over a number of financial years. Design development works in progress and construction works to be completed this financial year.

Wilsons Creek Road east of Montecullum

21,600

Unexpended Grant, construction finalised July 2016

22 Bangalow Road - Resolve Stormwater Flooding

9,900

Design development works in progress.

SGB Street Drainage Upgrade Stage 2

20,000

Design development in progress. Actual construction works funded separately and scheduled for implementation between September and November 2016.

Water Lilly Park Lake Options Study

10,000

Options study in progress and will be reported to Council in the near future.

Safer Roads Project – Coolamon Scenic Drive

69,000

Unexpended Grant, construction finalised July 2016

Brunswick Valley Way/Tweed Valley Way Yelgun

57,000

Works were completed in July 2016.

Myocum Road Segment

65,500

Design development and preliminary works completed in 20156/16. Actual construction works in progress and will be completed in September 2016.

Ruskin Lane Stormwater Augmentation

62,600

Works completed in August 2016.

Massinger St, Lawson St to Kipling St

595,000

Works completed in August 2016.

Purchase of Surplus ADF Bridges

20,900

Unexpended funds to part assist with purchase of additional bridges.

Orana Road Ocean Shores

20,000

Design development works in progress.

Broken Head Road, Suffolk Park - South of Clifford

431,600

Design development works in progress.

Main Arm Road - Blind Mouth Causeway Upgrade

83,000

Funds needed for implementation.

Byron Bay Bypass

220,800

Funds needed for implementation following project approval.

Massinger/Lawson St Roundabout

120,000

Contract works scheduled between August and November 2016.

Clifford St intersection with Broken Head Road

131,400

Short term design development works in progress. Procurement for redesign of roundabout to occur in 2017/18

Bayshore Drive/Ewingsdale Road Roundabout

84,700

Design development works and preparation of contract documents in progress and will be finished by December 2016.

Initial Costs Car Park at Bangalow Sports Fields

27,800

Design development works in progress and will be finished later in 2016.

Total

2,780,400

 

 

Whilst Council in accordance with Clause 211 of the Local Government (General) Regulation 2005 conducted its annual meeting to approve expenditure and voting of money on 29 June 2016 via Resolution 16-348, the expenditure items subject of this report were not included in the 2016/2017 Budget Estimates but now need to be.  The intent of this report is to seek Council approval to revote the carryovers from the 2015/2016 financial year and to adopt the budget allocation carryovers for inclusion in the 2016/2017 adopted Budget Estimates.

 

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

 

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

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

financial year before it is reviewed and priorities established.

 

Resolution 13-164 has also been incorporated into Part 7 – ‘Policy and Decision Making’ of the Financial Sustainability Plan (FSP) 2015/2016 considered by Council at its Ordinary Meeting held on 10 December 2015 (Resolution 15-606).

 

Statutory and Policy Compliance Implications

 

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

 

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

 

(a) has approved the expenditure, and

 

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

 

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

 

Council resolution 13-164

 

Part 7 – ‘Policy and Decision Making’ of the Financial Sustainability Plan (FSP) 2016/2017.


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           5.2 - Attachment 1


 


 


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 3


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            5.3

 

 

Report No. 5.3             Council Budget Review - 1 April 2016 to 30 June 2016

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

File No:                        I2016/886

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

This report is prepared in accordance with the format required by Clause 203 of the Local Government (General) Regulation 2005 to inform Council and the Community of Council’s estimated financial position for the 2015/2016 financial year, reviewed as at 30 June 2016. 

 

The Quarterly Budget Review for the June 2016 Quarter has been prepared by staff even though it is not statutory requirement to assist Council with its Policy and decision making on matters that could have short, medium and long term implications on Councils financial sustainability.

 

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 Attachments 1 and 2 for Committee’s consideration and recommendation to Council for authorisation.

 

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

 

The report also provides an indication of the financial position of the Council at 30 June 2016.  It should be noted that the figures provided are subject to completion and audit of the Council’s Financial Statements for 2015/2016. Any major variances to the estimated financial position for the 2015/2016 financial year will be included as part of the report adopting the financial statements during October 2

 

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

 

1.       That Council authorises the itemised budget variations as shown in Attachment 2 (#E2016/74510) which includes the following results in the 30 June 2016 Quarterly Review of the 2015/2016 Budget:

 

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

b)   General Fund - $9,096,400 increase in reserves

c)   Water Fund - $1,959,600 increase in reserves.

d)   Sewerage Fund - $643,300 increase in reserves

 

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

 

3.       That Council allocate $2,163,000 to internal reserve funds as indicated in this report under the heading ‘Specific Cash Position’.

 

Attachments:

 

1        Budget Variations for General, Water and Sewerage Funds, E2016/74504 , page 54  

2        Itemised Listing of Budget Variations for General, Water and Sewerage Funds, E2016/74510 , page 117  

3        Integrated Planning and Reporting Framework (IP&R) required Quarterly Review Statement, E2016/74511 , page 126  


 

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 three quarters of the 2015/2016 financial year.  This report considers the June 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, the March review, resolutions between April and June and the revote (or adjustment for this review) and then the revised position projected for 30 June 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.

 

Division of Local Government Budget Review Guidelines:-

 

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

 

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

 

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

 

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

 

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

Consolidated

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

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

 

·    Budget Review Capital Budget

 

·    Budget Review Cash and Investments Position

 

·    Budget Review Key performance indicators

 

·    Budget Review Contracts and Other Expenses

 

The above components are included in Annexure 5(c):-

 

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

 

Capital Budget Review Statement – This statement identifies in summary Council’s capital works program on a consolidated basis and then split by Fund.  It also identifies how the capital works program is funded.

 

Cash and Investments Budget Review Statement – This statement reconciles Council’s restricted funds (reserves) against available cash and investments.  Council has attempted to indicate an actual position as at 30 June 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 in future quarterly reviews pending on cash flow movements.

 

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

 

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

 

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

 

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

 

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

 

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

 

CONSOLIDATED RESULT

 

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

 

 

2015/2016 Budget Review Statement as at 30 June 2016

Original Estimate (Including Carryovers)

 1/7/2015

 

Adjustments to June 2016 including Resolutions

 

Proposed June 2016 Review Revotes

 

Revised Estimate 30/6/2016

Operating Revenue

72,162,100

2,487,800

1,453,400

76,103,300

Operating Expenditure

78,507,400

465.500

(3,724,700)

75,248,200

Operating Result – Surplus/Deficit

(6,345,300)

2,022,300

5,178,100

855,100

Add: Capital Revenue

10,726,000

53,300

1,773,600

12,552,900

Change in Net Assets

4,380,700

2,075,600

6,951,700

13,408,000

Add: Non Cash Expenses

14,586,500

(2,071,400)

0

12,515,100

Add: Non-Operating Funds Employed

4,100,000

127,700

0

4,227,700

Subtract: Funds Deployed for Non-Operating Purposes

(43,048,100)

12,519,400

4,747,600

(25,781,100)

Cash Surplus/(Deficit)

(19,980,900)

12,651,300

11,699,300

4,369,700

Restricted Funds – Increase / (Decrease)

(19,980,900)

12,651,300

11,699,300

4,369,700

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 to the estimated position as at 30 June 2016:

 

Opening Balance – 1 July 2015

$919,100

Plus original budget movement and carryovers

0

Council Resolutions July – September Quarter

0

September Review Adjustments – increase/(decrease)

0

Council Resolutions October – December Quarter

0

December Review Adjustments – increase/(decrease)

0

Council Resolutions January – March Quarter

0

Recommendations within this Review – increase/(decrease)

0

Council Resolutions April – June 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

 

Council Resolutions

 

There were no Council resolutions during the April 2016 to June 2016 quarter that impacted the 2015/2016 budget result.

 

Budget Adjustments

 

A summary of the budget adjustments identified in Attachment 1 and 2 for the General Fund has been summarised by Budget Directorate in the following table:

 

 

 

 

 

 

Budget Directorate

Revenue Increase/

(Decrease) $

Expenditure Increase/

(Decrease) $

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

Organisation Development

0

0

0

Corporate & Community Services

608,600

637,200

(28,600)

Infrastructure Services

(2,513,700)

(2,652,700)

139,000

Sustainable Environment & Economy

373,900

484,300

(110,400)

Total Budget Movements

(1,531,200)

(1,531,200)

0

 

Budget Adjustment Comments

 

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

 

The major consideration with this budget review is the reduction in expenditure associated with projects not completed and under expenditure.  Council will also be considering a report to this same Ordinary Council Meeting regarding carryover items from the 2015/2016 financial year not completed to be added to the 2016/2017 Budget Estimates.  This report also considers the implications of that report.

 

As a consequence of these revisions, there is a significant proposed increase to Council’s restricted funds given the cash position overall for the financial year ended 30 June 2016 increased significantly compared to the anticipated reduction in cash expected.  Council was expecting to see a reduction of $19.981 million in its cash position for the 2015/2016 financial year as per the original adopted budget estimates, however current indications are that the June 2016 Quarter Budget Review in conjunction with previous Quarterly Budget Reviews is requiring a $4.370 million transfer back to reserve funds.

 

Specific Cash Position

 

Upon reconciling Council’s total cash and investment position at 30 June 2016 compared to the reserve movements outlined in this Budget Review, there is an indication that Council will have total unrestricted cash and investments of $3,305,600.  Council commenced the 2015/2016 financial year with unrestricted cash of $1,142,600 which was an attainment of one of Council’s short term financial goals.  If Council chooses to maintain this balance at 30 June 2016, it therefore indicates there is a further $2,163,000 that could be allocated to reserve in addition to the movement contained in the Budget Review.  In that regard it is suggested that Council allocate the funds as follows:

 

·    $1,643,000 to the Infrastructure Renewal Reserve including $1,000,000 that can be allocated to Bridge replacement works.

·    $100,000 to the Information Technology Reserve to provide funding for Council to implement the Unified Communication Project relating to the replacement of Council’s phone system that has been in place for over twenty years to enable newer technology and provide improved customer service.

·    $200,000 to the Infrastructure Services Carryover Reserve to provide funding for Council to develop and implement its next set of Integrated Planning Documents including Community Strategic Plan and the required community consultation in terms of Council addressing its infrastructure issues along with having a conversation regarding funding for future works.

·    $20,000 to the General Manager Office Reserve to assist in the scoping of projects.

·    $200,000 to the property development reserve to further assist Council with property rationalisation in accordance with the Financial Sustainability Plan (FSP).

 

The actual amounts that will be eventually allocated will be contingent upon finalisation of the 2015/2016 financial statements yet to be finalised and subject to external audit.

 

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 are derived as follows:

 

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

(1,939,800)

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

Resolutions April to June Quarter – increase / (decrease)

(33,000)

June Quarterly Review Adjustments – increase / (decrease)

824,600

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

232,500

Estimated Reserve Balance at 30 June 2016

$2,810,400

 

 

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

Resolutions April – June Quarter – increase / (decrease)

0

June Quarterly Review Adjustments – increase / (decrease)

1,135,000

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

(268,500)

Estimated Reserve Balance at 30 June 2016

$10,549,100

 

Movements for Water Fund can be seen in Attachment 1, with a proposed estimated increase to reserves (including S64 Contributions) overall of $1,959,600 from this 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.

 

The estimated Sewerage Fund reserve balances as at 30 June 2016 are derived as follows:

 

Capital Works Reserve

 

Opening Reserve Balance at 1 July 2015

$4,681,300

Plus original budget reserve movement

1,189,700

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

Resolutions April - June Quarter – increase / (decrease)

0

June Quarterly Review Adjustments – increase / (decrease)

(124,800)

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

468,700

Estimated Reserve Balance at 30 June 2016

$5,150,000

 

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

Reserve movements from September Quarter – increase / (decrease)

0

Reserve movements from December Quarter – increase / (decrease)

0

Reserve movements from March Quarter – increase / (decrease)

0

Reserve movements from June Quarter – increase / (decrease)

42,700

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

42,700

Estimated Reserve Balance at 30 June 2016

$827,800

 

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

Resolutions April – June Quarter – increase / (decrease)

0

June Quarterly Review Adjustments – increase / (decrease)

725.300

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

2,532,300

Estimated Reserve Balance at 30 June 2016

$8,760,300

 

Movements for the Sewerage Fund can be seen in Attachment 1, with a proposed estimated decrease to reserves (including S64 Contributions) overall of $356,800 from this review.

 

Legal Expenses

 

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

 

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

 

Total Estimated Legal Income & Expenditure as at 30 June 2016

 

 

Program

2015/2016

Budget ($)

 

Actual ($)

Percentage To Revised Budget

Income

 

 

 

Legal Expenses Recovered

0

6,200

0%

Total Income

0

6,200

0%

 

 

 

 

Expenditure

 

 

 

General Legal Expenses

200,000

230,168

115%

Total Expenditure General Fund

200,000

230,168

115%

 

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)

(1,803)

Less Road Reconstruction Works (Various – Original Budget)

(61,000)

Legal Expenses above allocated budget

(23,968)

Estimated Reserve Balance at as at 30 June 2016

$692,329

 

Financial Implications

 

The 30 June 2016 Quarter Budget Review of the 2015/2016 Budget Estimates has maintained the expected estimated budget attributable to the General Fund of $0 assuming all revotes of income and expenditure for Council’s consideration are approved.  Overall, the short term financial position of Council still needs to be carefully monitored on an ongoing basis. However having said that, it is estimated that the General Fund Accumulated Surplus (Working Funds) result of $919,100 is slightly less than the adopted General Fund Accumulated Surplus (Working Funds) target of $1,000,000 for the General Fund.  Maintaining this result through the financial year is a further achievement for Council.

 

It is expected also given the level of reserve funds compared to total cash and investments at 30 June 2016, Council is likely to have an unrestricted cash balance currently estimated at $1,142,600.  This is another further achievement for Council maintaining this result throughout the financial year.

 

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

 

The outcomes associated with this Budget Review need to be considered in context that they are indicative financial outcomes for the 2015/2016 financial year.  Council is yet to finalise its financial statements for the year ended 30 June 2016 which will be subject to external independent audit.

 

It is expected that Council will receive a report to adopt its financial statements for the year ended 30 June 2016 at its Ordinary Meeting to be held on 27 October 2016 where the final financial results for the year will be presented.

 

Statutory and Policy Compliance Implications

 

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

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

 

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

 

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

 

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

 

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

 

Statement by Responsible Accounting Officer

 

This report indicates that the short term financial position of the Council is satisfactory for the 2015/2016 financial year, having consideration of the original estimate of income and expenditure at the 30 June 2016 Quarter Budget Review.

 

This opinion is based on the estimated General Fund Accumulated Surplus (Working Funds) position and the expected improvement of that position by the current indicative budget of $0 for 2015/2016.

 

 

 

 


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 1


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


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

 


BYRON SHIRE COUNCIL

Late Reports                                                                                                                               6.1

 

 

Late Reports

 

Report No. 6.1             Draft 2016-2026 Long Term Financial Plan

Directorate:                 Corporate and Community Services

Report Author:           James Brickley, Manager Finance

File No:                        I2016/901

Theme:                         Corporate Management

                                      Financial Services

 

 

Summary:

 

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

 

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

 

Council last updated its LTFP at its Ordinary Meeting held on 17 September 2015 through resolution 15-427.  This update to the LTFP only included the General Fund, as the Water and Sewerage Funds were being reviewed as part of the development of new Business Plans for those Funds.

 

A report on the LTFP was considered the Finance Advisory Committee at its Meeting held on 20 August 2015. Following consideration of the report, the Committee recommended to Council the assumptions to be used for the modelling of the LTFP base case and in the scenarios. The adopted 2015-2025 LTFP included both the assumptions and the scenarios recommended by the Committee.

 

This report is prepared to allow the Finance Advisory Committee to consider and review both the proposed assumptions and scenarios for inclusion in the updated Draft Byron Shire Council Long Term Financial Plan for 2016-2026.

 

The scenarios recommended in the report incorporate the strategies set out in the adopted Council Improvement Plan (CIP) and submitted by Council as part its response to the ‘Fit for the Future’ process. 

 

At the time of preparing this report, the Draft LTFP 2016-2026 document is still being developed and will be further informed by the Finance Advisory Committee’s consideration of this report.

 

 

  

 

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council that the completion of 2016-2026 Long Term Financial Plan be based on the assumptions and scenarios outlined in this report.

 

 

 

 

 


 

Report

 

Background

 

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

 

Council last updated its Long Term Financial Plan at its Ordinary Meeting held on 17 September 2015 through resolution 15-427 and is required to update LTFP at a minimum on an annual basis. 

 

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

 

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

 

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

 

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

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

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

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

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

 

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

 

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

·    Must be for a minimum of 10 years.

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

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

 

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

 

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

·    Planning assumptions used in developing the Plan.

·    Methods of monitoring financial performance.

·    Sensitivity analysis which highlights the factors and assumptions most likely to impact the Plan.

·    Financial modelling for at least three different scenarios, for example the planned scenario, an optimistic scenario (eg taking into consideration a yet to be approved special rate variation) and a conservative scenario.

 

Draft Long Term Financial Plan 2016-2026

 

This report is provided to the Finance Advisory Committee to consider and review the proposed assumptions and scenarios to update the Draft Byron Shire Council Long Term Financial Plan 2016-2026 that incorporates revised assumptions and proposed scenarios.

 

Assumptions

 

Based on Resolution 15-427, the assumptions underpinning the updated LTFP 2015-2025 were:

 

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

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

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

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

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

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

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

·    New loan borrowings will only be for the following:

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

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

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

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

 

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

 

For the purposes of developing the Draft 2016-2026 Long Term Financial Plan, it is considered the following assumptions are appropriate:

 

·    General Fund Unrestricted Cash be maintained at $1,000,000 as a minimum level.

·    Rate pegging to be limited to increments of 2.50% per annum to accord with IPART suggested allowance for future rate pegs.

·    General rate income growth per annum (new assessments) from development 1.0%.

·    The freeze on the Financial Assistance Grant expires at the end of the 2016/2017 financial year so indexation will recommence from 2017/2018 at 1.00% to be conservative as actual grant outcomes are not known.

·    Unregulated fees and charges be increased in line with the Consumer Price Index (CPI) as a minimum.

·    Salary and wage indexation to be set at Consumer Price Index (CPI) plus 0.50%.

·    All other costs to be indexed by the Consumer Price Index (CPI) less the 1% efficiency dividend as outlined in the Conservative Scenario.

·    Investment rates will be the 90 day bank bill rate reported monthly averaged over the last twelve months.  An assessment will be made to compare this to current investment rates for reasonableness.

·    Loan borrowing rates will be assumed at the current investment bill rate for the respective term plus 1.00%.

·    New loan borrowings will only be for the following:

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

To reduce the funding gap for the renewal of existing infrastructure. Including application for low interest loans via NSW Treasury Corporation if applicable given Council is declared ‘Fit for the Future’.

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

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

 

Scenarios

 

The base case scenario and the planned scenario contained in the updated Draft LTFP 2016-2026 is the current 2016/2017 budget estimates relevant to the current Operational Plan adopted by Council on 29 June 2016 (Resolution 16-348) plus Carryovers yet to be approved by Council.

 

Four scenarios will be built off the base case scenario to be included in the updated Draft LTFP 2016-2026. The proposed scenarios will be represented by projected financial statements based on the disclosure requirement of the LTFP.  The scenarios are proposed to be on a consolidated basis being General Fund, Water Fund and Sewerage Fund combined but

 

·    Base Scenario or Conservative Scenario – Current Original 2016/2017 Budget Estimates including Carryovers (yet to be approved by Council) plus 9 year projections based on current service levels as per resolution 16-348. This scenario is also to include recognition of at 1% efficiency saving in General Fund Materials & Contracts plus Other Expenses.  The efficiency saving in operational costs is through Strategic Procurement initiatives.  It assumes no impact on asset renewal but in terms of dollar spend but provide more funding for works.  This was the basis for formulating the 2016/2017 Budget Estimates.

 

·    Scenario 1 (Planned Scenario) – Based off the base scenario plus further supplementation of paid parking revenue by including an additional $600,000 revenue in 2017/2018 from implementation of paid parking at Wategoes beach.  Proceeds of this revenue will be all allocated to asset renewal. 

 

·    Scenario 2 – (Planned Scenario 1) is based off the base scenario plus scenario 1 plus the realisation of operational land assets that may be considered surplus to Council requirements as per the adoption of the Financial Sustainability Project Plan (FSPP) 2015/2016, Section 5 – Land Review and Property Development.  Proceeds of land sales are also assumed to be directed towards asset renewal.

 

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

 

The above four scenarios are examples of how the LTFP can undertake financial modelling and assist decision making.  It is suggested that the scenarios identified above are to be the scenarios to be included in the updated LTFP for 2016-2022.

 

The updated Draft LTFP 2016-2026 will also demonstrate performance indicators relating to the financial sustainability of Council utilising a traffic light indicator meaning Green is good, Yellow is satisfactory and Red is unsatisfactory and needs attention. The performance indicators will include the seven ‘Fit for the Future’ benchmarks and those indicators disclosed annually at Note 13 to Council’s Financial Statements.

 

Financial Implications

 

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

 

Statutory and Policy Compliance Implications

 

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

403   Resourcing strategy

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

 

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

 

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