Agenda of Finance Advisory Committee Meeting

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.	DCCS	June 2017	Progress Update (30 June 2017) 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.	DCCS	Monthly	Progress Update (30 June 2017) 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.	DCCS	Monthly	Progress Update (30 June 2017) 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.	DCCS	Quarterly	Progress Update (30 June 2017) The 2016/17 FSP was adopted by Council at its ordinary meeting held on 2 February 2017. 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.	DCCS	Quarterly	Progress Update (30 June 2017) Expenditure savings will be included in the June 2017 Quarterly Budget Review Report to this meeting of the Finance Committee.
6. Report to Council any recommendations regards policy changes.	DCCS	As required	Progress Update (30 June 2017) Reported to Council as required.

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.	DCCS	June 2017	Progress Update (30 June 2017) The Internal Working Groups have continued to operate and report to the Executive Team as required. A weekly status update for identified critical projects is provided in the internal weekly Critical Project Status Update Report to ET.
2. Internal Staff Working Group/staff to report to the Executive Team any proposed opportunities for deriving new/additional revenue.	DCCS	June 2017	Progress Update (30 June 2017) The focus during the reporting period has been on the implementation and approval by Council of the Special Rate Variation (SRV) following approval by the Independent Pricing and Regulatory Tribunal (IPART).
3. Report to the Finance Committee and/or the Council any proposed opportunities for deriving new/additional revenue.	DCCS	Quarterly	Progress Update (30 June 2017) Reported as required.
4. Report to Council any recommendations regarding policy change and/or increases to existing or new revenue sources.	DCCS	June 2017	Progress Update (30 June 2017) Council at the 22 June 2017 Ordinary Council meeting received two reports on the 2017-2018 Revenue Policy and Making of the Rate 2017-2018. Both of these reports incorporated the revised rating structure workshopped with Council that increased the rating distribution to Business categorised ratepayers whilst providing as reduction to Residential categorised ratepayers.
5. Prepare submissions and lobby for grant funding for major capital works projects.	DCCS	June 2017	Progress Update (30 June 2017) The Grant applications submitted by Council have been supported, where appropriate, with submissions to the Local Members and the responsible State or Federal Minister. The Grant Applications submitted are detailed in the Monthly Grants Report to Council.
6. Community Consultation and Submission of the Special Rate Variation Application to IPART to apply from 2017/2018 financial year and three following financial years.	DCCS	June 2017	Progress Update (30 June 2017) Council’s Special Rate Variation application was approved by IPART on 9 May 2017. Council at its Ordinary Meeting held on 20 April 2017, adopted the Draft 2017-2018 Revenue Policy for public exhibition inviting submissions from the public. Council conducted a twenty eight day public exhibition period and considered all public submissions received. At it’s Ordinary Meeting held on 22 June 2017, Council adopted the rates and charges to apply for the 2017/2018 financial year that included the Special Rate Variation approved by IPART.

Strategy Element: Land Review and Property Development

Actions	Action Owner	Action Due Date	Management Comments
General Fund
1. Lot 12 Bayshore Drive – Evaluation and possible sale.	DIS	June 2017	Progress Update (30 June 2017) The annual return for the Licence has been completed. The site valued and an EOI for future use is being prepared.
2. Manfred Street – Complete and lodge planning proposal for the reclassification in accordance with Res 13-698.	DCCS	June 2017	Progress Update (30 June 2017) This matter was the subject of a Report to the Ordinary held on 22 June 2017. Council resolved (17-271) “that this item be deferred until Councillors have received a workshop on the matters, which will include legal advice.”
3. Station Street – Complete sale.	DIS	June 2017	Progress Update (30 June 2017) Initial subdivision works completed. Angled street parking must be removed and replaced with parallel parking. NCCH preparing a DA. Finalization and sale could occur before the end of the year.
4. Yaran Road, Tyagarah Airfield – Rezoning, DA works.	DIS	June 2017	Progress Update (30 June 2017) Matter reported to Council. Extensive investigation and assessments required as per Res17-121. A further report to Council is expected in August.
5. Lot 22 Mullumbimby – Planning proposal and rezoning.	DIS	June 2017	Progress Update (30 June 2017) The background studies in support of the Planning Proposal are being prepared including flood assessment; recreational needs study, heritage, contamination, ecology and infrastructure services. Res 17-260 pertains regarding community engagement.
6. Bayshore Drive Works Depot, Byron Bay (Lot 102, DP1087996, 1.79 hectares) – Reassess the feasibility and options for a potential relocation.	DIS	June 2017	Progress Update (30 June 2017) A draft report has been received.

Water Fund
7. Fletcher Street –Finalise architectural concept and business case.	DIS	June 2017	Progress Update (30 June 2017) Architectural consultants have been appointed. Detailed work will progress to develop a viable development proposal showcasing sustainability best practice.
Sewer Fund
8. South Byron STP – Future option determination. Continue site remediation. Start rezoning.	DIS	June 2017	Progress Update (30 June 2017) Council has resolved Res17-225 to progress the full site remediation and also the future use EOI.
9. Brunswick Heads STP – Complete remediation.	DIS	June 2017	Progress Update (30 June 2017) The site demolition and remediation contract is progressing. Completion is expected this year.
10. Mullumbimby STP – Detailed site contamination and remediation assessments.	DIS	June 2017	Progress Update (30 June 2017) The contamination and remediation assessments are well advanced. Additional work has been required to quantify recycled material volumes and develop a detailed plan for onsite use.
11. Brunswick Valley STP, Vallances Road – Assess development options.	DIS	June 2017	Progress Update (30 June 2017) Consultants Planit have been engaged to complete the POM. This will be reported to Council later this year.
12. Bangalow STP – The RLUS has determined that rural residential is not viable in this location due to the proximity of both the STP and surrounding agricultural activity.	DIS	June 2017	Progress Update (31 March 2017) Completed - no further work required.
13. Lot 4 Mill Street – Assess development options.	DIS	June 2017	Progress Update (30 June 2017) JHR are preparing a subdivision plan and land valuation. This will give Council the option to purchase land that would ensure road access to the property. Res 17-260 refers to this property.
14. Various small surplus land parcels – Continue program.	DIS	June 2017	Progress Update (30 June 2017) This matter is ongoing and work has progressed on the options for sale of surplus road reserves and other minor land areas and been reported to Council.
Waste Fund
15. Lots 3 and 29 Manse Road – Progress options for resource recovery in the quarry	DIS	June 2017	Progress Update (30 June 2017) No further change from the previous quarter - A Resource recovery Master Plan has been developed which will be used to establish options for the future use of the adjoining quarry.
16. Lot 15 Dingo Lane, Myocum – Progress options for resource recovery in the quarry.	DIS	June 2017	Progress Update (30 June 2017) Property should be retained until the future use of the adjoining council quarry is finalised.
17. Lot 16 Dingo Lane, Myocum – Assess retention and sale options.	DIS	June 2017	Progress Update (30 June 2017) Council has resolved Res 17-228 to sell the property.

Strategy Element: Strategic Procurement

Actions	Action Owner	Action Due Date	Management Comments
1. Develop contracts management guidelines and processes.	DCCS	June 2017	Progress Update (31 March 2017) 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.	DCCS	June 2017	Progress Update (31 March 2017) Annual Procurement Plan developed and endorsed by the Executive Team. Complete.
3. Develop and implement priority contracts program.	DCCS	June 2017	Progress Update (31 March 2017) Priority contracts program developed with Annual Procurement Plan, based on spend analysis data. Complete.
4. Detailed spend analysis and reporting.	DCCS	June 2017	Progress Update (31 March 2017) Spend analysis is completed at the end of each financial year to track performance and identify opportunities for improvement. Complete.
5. Implement ongoing procurement and contract management training program.	DCCS	June 2017	Progress Update (31 March 2017) Identified staff are undertaking online training through local government procurement. Training courses being undertaken include: Probity in Procurement, Procurement Essentials, Contract Management, and Specification Writing. Online training will continue to be offered to relevant staff. Complete.
6. Implement targeted program to reduce invoice numbers and transaction costs.	DCCS	June 2017	Progress Update (30 June 2017) The new purchase to pay process (see item 8 below) will result in a significant reduction in transaction costs. Work to reduce invoice numbers is ongoing but complete for this year. Budget is increasing resulting in a greater number of invoices but average invoice value is decreasing which indicates less time and effort is spent on processing low-value invoices. Complete.
7. Develop social and sustainable procurement and economic development plan.	DCCS	June 2017	Progress Update (31 March 2017) The Sustainable Procurement Plan which addresses the four elements of sustainable procurement (social, environmental, economic, governance) has been completed. Complete.
8. Review purchase to pay process.	DCCS	June 2017	Progress Update (30 June 2017) On-line purchase requisitions (OLR) has been implemented and went live during April 2017. Implementation issues addressed Complete.
9. Implement purchasing cards for low value high volumed transactions.	DCCS	June 2017	Progress Update (30 June 2017) Trial of purchasing cards is now underway. Results of trial will be assessed when trial is completed in December 2017.

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 2017	Progress Update (30 June 2017) 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 2015/16 budget recommended to be carried over to the 2016/17 Budget be reported to Council following the end of the 2015/16 Financial Year.	Council	June 2017	Progress Update (30 June 2017) This item is complete. Carryovers from 2015/2016 to be added to the 2016/2017 budget were considered by the Finance Advisory Committee at its Meeting held on 18 August 2016. These were later adopted by Council at its Ordinary Meeting held on 25 August 2016 (Resolution 16-446).
3. That the monthly Finance Report be distributed to Councillors on a monthly basis.	Finance Manager	June 2017	Progress Update (30 June 2017) Monthly finance reports are being circulated to Councillors.
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.	DCCS	June 2017	Progress Update (30 June 2017) Council at its Ordinary meeting held on 22 June 2017 adopted Policy 5.52 – Commercial Activities on Coastal and Riparian Crown Reserves following an extension review process involving Partner Authorities and Stakeholders. This project is ongoing.

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 adopted Byron Bay Town Centre Masterplan.	ET	June 2017	Progress Update (30 June 2017) Leadership Group has been established. Other Projects identified by staff will be reported to Council as developed.
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 2017	Progress Update (30 June 2017) a) The matter was reported to Council. Extensive investigation and assessments required as per Res17-121. A further report to Council is expected in August. b) This matter is currently pending the resolution of the land tenure issues at this site. Council has resolved to close the section of road reserve and Crown lands has agreed that upon closure that this land will vest to Council. Road Closure application has been lodged. c) Architectural consultants have been appointed. Detailed work will progress to develop a viable development proposal showcasing sustainability best practice.

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 adopted Byron Bay Town Centre Masterplan.

June 2017

Progress Update (30 June 2017)

Leadership Group has been established.

Other Projects identified by staff will be reported to Council as developed.

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 2017

Progress Update (30 June 2017)

a) The matter was reported to Council. Extensive investigation and assessments required as per Res17-121. A further report to Council is expected in August.

b) This matter is currently pending the resolution of the land tenure issues at this site. Council has resolved to close the section of road reserve and Crown lands has agreed that upon closure that this land will vest to Council. Road Closure application has been lodged.

c) Architectural consultants have been appointed. Detailed work will progress to develop a viable development proposal showcasing sustainability best practice.

Strategy Element: Volunteerism

Actions	Action Owner	Action Due Date	Management Comments
1. Review the Volunteer Policy and framework to ensure that it meets the National Standards for volunteer involvement, and supports the organisation in delivering volunteer activities.	Manager Community Development	June 2017	Progress Update (30 June 2017) Draft Volunteer Policy developed. Consultation with Managers and Team Leaders and IS Directorate to occur prior to reporting to ET. December 2017 completion expected.
2. Undertake an organisation wide audit of current volunteer activities.	ET	June 2017	Progress Update (30 June 2017) Internal Audit yet to be progressed. Will form part of the Manager/TL consultation detailed above.
3. Recognition of current volunteers.	ET	June 2017	Progress Update (30 June 2017) Volunteer recognition event held on 12 May which incorporated an section to recognise and to thank volunteers and the community sector for assistance in the wake of ex-tropical cyclone Debbie. Completed.
4. Identify and deliver a social innovation pilot project.	Manager Community Development	June 2017	Progress Update (30 June 2017) · Staff educational workshops completed · Resource Recovery Study Tour completed · Byron Young Innovators endorsed by Council o Social Enterprise Incubator in development o Youth Innovation Summit in development o Youth enterprise workshops in development · Social procurement pilot projects specifications completed o Myocum tip electrical wire sorting o Toilet cleaning Byron Bay · Countrylink Social Enterprise project o Draft RFP completed o Draft CMS completed o Integrated DA to be completed o Report to ET 26 July o Councillor SPW 10 August o RFP advertised end August 2017

Strategy Element: Collaborations and Partnerships

Actions	Action Owner	Action Due Date	Management Comments
1. Embed collaboration/partnerships into the IP&R framework through the four year preparation of IP&R documents.	DCCS	June 2017	Progress Update (30 June 2017) Council on 22 June 2017 adopted the Delivery Program 2017-2021. Action CM3.1.2 – Develop an inclusive organisational Partnership Strategy, identifies the Year 1 Activity in the 2017/18 Operational Plan as being to “initiate strategy development”.
2. Identify key potential organisational strategic partnerships/collaborations.	DCCS	June 2017	Progress Update (30 June 2017) As above. In addition Council on 22 June resolved as follows:- *17-278 Resolved:* 1. That the Draft Supporting Partnerships Policy be placed on public exhibition for a period of 28 days. 2. That in the event: a) that any submissions are received on the Supporting Partnerships Policy, they be reported back to Council prior to adoption of the policy; or b) that no submissions are received on the Supporting Partnerships Policy, the policy be adopted and incorporated into Council’s Policy Register. This Policy when adopted will guide the development of strategic partnerships for projects going forward.
3. Review the format of Council reports as part of the internal audit recommendations to align Council reporting with strategic objectives.	DCCS	June 2017	Progress Update (30 June 2017) Review completed and no change recommended.
4. Provide a report to ET quarterly that identifies strategic partnerships/collaboration projects.	DSEE	June 2017	Progress Update (30 June 2017) Research Paper presented to the Executive Team and Council on potential frameworks for strategic partnerships/collaboration projects. The development of the Draft Supporting Partnerships Policy and the further workshop session with Council was an outcome of the Research Paper.

Strategy Element: Asset Management

Actions	Action Owner	Action Due Date	Management Comments
1. Prepare infrastructure reports for the Financial Statements and NSW Fit for Future program.	DIS	June 2017	Progress Update (31 March 2017) This was completed and submitted as part of the submission to the State Government. Completed.
2. Develop levels of service for infrastructure to support investment.	DIS	June 2017	Progress Update (30 June 2017) Timely asset renewal affects LOS. The TAMP is now being prepared. Reports underway for the next TIAC 17 August.
3. Progress the outcomes of Asset Management Audits to improve performance.	DIS	June 2017	Progress Update (30 June 2017) Working Group progressing action. Internal audit completed and the good result reported to the IAC.
4. Improve the level and integration of asset information to better assist decision making and focus infrastructure investment.	DIS	June 2017	Progress Update (30 June 2017) CRM project progressing through IT services.
5. Revalue water and sewer assets in accordance with the Local Government Accounting Code.	DIS	June 2017	Progress Update (30 June 2017) Completed but currently being reviewed by the External Auditor on behalf of the NSW Audit Office.
6. Creatively develop new and revised funding strategies for better community outcomes.	DIS	June 2017	Progress Update (30 June 2017) New S64 in place. S94 plan in review.
7. Actively work with government and industry leaders to improve asset management performance.	DIS	June 2017	Progress Update (30 June 2017) Completed LG Pro survey. Work with Reflect across local Councils. Presentation to conference on Bridge inspections. Ongoing information provided to industry groups. Blue Mountains City Council coming to review our work with MyPredictor.
8. Engage with the community on the challenges of asset management.	DIS	June 2017	Progress Update (30 June 2017) SRV Asset Survey completed. Presentations made to the TIAC and Council.

Strategy Element: Long Term Financial Planning

Actions	Action Owner	Action Due Date	Management Comments
1. Develop the 2016-2026 Long Term Financial Plan following adoption of the 2016/17 Operational Plan and report to the Finance Advisory Committee/Council prior to 18 August 2016.	Finance Manager	June 2017	Progress Update (31 March 2017) 2016-2026 Long Term Financial Plan adopted by Council on 15 December 2017. Completed but not by the Action due date.
2. Further update the 2016-2026 Long Term Financial Plan to address the requirements of Council’s proposed Special Rate Variation (SRV) application prior to lodgement with IPART in February 2017.	Finance Manager	June 2017	Progress Update (31 March 2017) Additional versions of LTFP also created to support Special Rate Variation (SRV) to IPART to match actual application and a further scenario to analyse impacts of proposed SRV expenditure without the proposed SRV revenue as requested by IPART during assessment of Council’s application. Completed.

Actions

Action Owner

Action Due Date

Management Comments

1. Develop the 2016-2026 Long Term Financial Plan following adoption of the 2016/17 Operational Plan and report to the Finance Advisory Committee/Council prior to 18 August 2016.

Finance Manager

June 2017

Progress Update (31 March 2017)

2016-2026 Long Term Financial Plan adopted by Council on 15 December 2017.

Completed but not by the Action due date.

2. Further update the 2016-2026 Long Term Financial Plan to address the requirements of Council’s proposed Special Rate Variation (SRV) application prior to lodgement with IPART in February 2017.

Finance Manager

June 2017

Progress Update (31 March 2017)

Additional versions of LTFP also created to support Special Rate Variation (SRV) to IPART to match actual application and a further scenario to analyse impacts of proposed SRV expenditure without the proposed SRV revenue as requested by IPART during assessment of Council’s application.

Completed.

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 (30 June 2017) Reporting for the quarter ended 30 June 2017 reported to the FAC 17 August 2017.
2. Recognition through the QBR process of financial outcomes delivered by the FSP.	Finance Manager	Quarterly	Progress Update (30 June 2017) June 2017 QBR reported to FAC on 17 August 2017.
3. Structural changes to both revenue sources and expenditure will be updated in the base budget during the preparation of the 2017/18 Budget.	Finance Manager	June 2017	Progress Update (30 June 2017) 2017/2018 Budget adopted on 22 June 2017. Budget reflective of changed revenue and expenditure priorities including the approved Special Rate Variation for the first year.
4. The financial outcomes delivered by the FSP updated into the Council’s Long Term Financial Plan and modelled in the Long Term Financial Plan Scenarios.	Finance Manager	June 2017	Progress Update (30 June 2017) Next version of the Long Term Financial Plan to be completed post the finalisation of the 2016/2017 financial results as the base year. This will be presented to a future meeting of the Finance Advisory Committee.
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 2017	Progress Update (30 June 2017) No update for this reporting period, however this will be reported to Council as part of the adoption of the 2016/2017 financial statements when presented to Council in October 2017.
6. Assessment of the seven ‘Fit for Future’ benchmarks on an ongoing basis to ensure Council maintains the ‘Fit’ outcome.	Finance Manager	June 2017	Progress Update (30 June 2017) No update for this reporting period, however the assessment of 2016/2017 benchmark results will be completed as part of the finalisation of the 2016/2017 financial statements and subsequent audit. This will be reported to Council in October 2017 to identify the 2016/2017 financial year outcomes.

Strategy Element: Environmental Projects

Actions	Action Owner	Action Due Date	Management Comments
1. Implement actions from the Low Carbon Strategy as per scheduled timeframes. Example of actions that meet the FSP include energy efficiency measures, installation of solar power and solar hot water, energy data optimisation, electric fleet vehicles and installation of smart meters.	DSEE	June 2017	Progress Update (30 June 2017) A report is being prepared on taking the Low Carbon Strategy to a Zero Carbon Strategy to accord with Resolution 17-086. Actions progressed in this period include fast charge electric vehicle station installed at the Byron Bay Library, energy efficiency project at the Mullumbimby Library commenced, request for quotation of solar power for Sandhills Child Care Centre, Byron Bay Library and Myocum Landfill commenced, Energy Optimisation Officer engaged 1 day per week, cost benefit analysis of solar carpark vs solar on roof at Administration building drafted, project plan developed to digitise electricity billing system, commenced procurement of new electricity contracts with intention of including green power and local electricity trading as a requirement and a detailed analysis of biomass feedstocks in the Byron Shire completed.
2. Work collaboratively with the Zero Emissions Byron project to identify actions that go beyond the Byron Shire Low Carbon Strategy.	DSEE	June 2017	Progress Update (30 June 2017) The Zero Emissions Byron project is overseen by a steering committee comprising the Mayor, Council staff, local community groups, BZE and the Centre for Social Change. The project is organised according to five sectors that contribute to emissions in the Shire: energy, transport, buildings, land use and waste. In each sector a team of local volunteers and experts has been established and has now calculated the baseline emissions. The Baseline Emissions Report is the current emissions and emission reduction strategies for the Byron community. Moving forward post baseline report, the creation a 10 Year Strategic Action Plan, identifying clear projects/strategies to help reduce emissions is now under development. As above, Council’s zero carbon strategy will identify measures required to move council towards 100% zero emissions. The strategy will be developed in consultation with Zero Emissions Byron and the community. Zero Emission Byron - Community have developed a draft strategic plan and have produced their Energy Emissions Reduction Plan.

Actions

Action Owner

Action Due Date

Management Comments

1. Implement actions from the Low Carbon Strategy as per scheduled timeframes. Example of actions that meet the FSP include energy efficiency measures, installation of solar power and solar hot water, energy data optimisation, electric fleet vehicles and installation of smart meters.

DSEE

June 2017

Progress Update (30 June 2017)

A report is being prepared on taking the Low Carbon Strategy to a Zero Carbon Strategy to accord with Resolution 17-086. Actions progressed in this period include fast charge electric vehicle station installed at the Byron Bay Library, energy efficiency project at the Mullumbimby Library commenced, request for quotation of solar power for Sandhills Child Care Centre, Byron Bay Library and Myocum Landfill commenced, Energy Optimisation Officer engaged 1 day per week, cost benefit analysis of solar carpark vs solar on roof at Administration building drafted, project plan developed to digitise electricity billing system, commenced procurement of new electricity contracts with intention of including green power and local electricity trading as a requirement and a detailed analysis of biomass feedstocks in the Byron Shire completed.

2. Work collaboratively with the Zero Emissions Byron project to identify actions that go beyond the Byron Shire Low Carbon Strategy.

DSEE

June 2017

Progress Update (30 June 2017)

The Zero Emissions Byron project is overseen by a steering committee comprising the Mayor, Council staff, local community groups, BZE and the Centre for Social Change. The project is organised according to five sectors that contribute to emissions in the Shire: energy, transport, buildings, land use and waste. In each sector a team of local volunteers and experts has been established and has now calculated the baseline emissions. The Baseline Emissions Report is the current emissions and emission reduction strategies for the Byron community. Moving forward post baseline report, the creation a 10 Year Strategic Action Plan, identifying clear projects/strategies to help reduce emissions is now under development.

As above, Council’s zero carbon strategy will identify measures required to move council towards 100% zero emissions. The strategy will be developed in consultation with Zero Emissions Byron and the community.

Zero Emission Byron - Community have developed a draft strategic plan and have produced their Energy Emissions Reduction Plan.

Report No. 4.2 Carryovers for Inclusion in the 2017/18 Budget

Directorate: Corporate and Community Services

Report Author: James Brickley, Manager Finance

File No: I2017/1082

Theme: Corporate Management

Financial Services

Summary:

This report is prepared for Council to consider and to adopt the carryover Budget allocations for works and services, either commenced and not completed, or not commenced in the 2016/2017 financial year for inclusion in the 2017/2018 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 2016/2017 financial year to the 2017/2018 Budget Estimates. The report also identifies the funding for each recommended budget allocation carryover.

In compiling this report, the Financial Sustainability Plan (FSPP) 2016/2017, 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 (#E2017/77527) be carried over from the 2016/2017 financial year and that the carryover budget allocations be adopted as budget allocation revotes for inclusion in the 2017/2018 Budget Estimates.

Attachments:

1 Carryovers and funding for inclusion in the 2017/2018 Budget, E2017/77527 , page 28 ⇩

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 2017/2018 Budget Estimates and the respective funding of each, relating to works and services not completed during the course of the 2016/2017 financial year. The specific details of all carryover works and services subject of this report are outlined for General, Water and Sewer Funds in Attachment 1.

Financial Implications

The works and services included in Attachment 1 are fully funded and have no impact on the Unrestricted Cash Result of Council or the 2017/2018 Budget Estimates result. As in previous years there is a significant amount of carryovers to be brought forward to the current financial year. Table 1 below provides a history of the value of carryovers in recent years with the proposed total carryovers for 2017/2018 $5,571,900 more then the carryovers related to the 2016/2017 financial year. Council may recall that there was also an earlier assessment of carryovers that was conducted before finalisation of the 2017/2018 Budget Estimates with these being included at that point.

Table 1 - Value of budget carryovers 2013/14 – 2017/18

Fund	2013/14 ($)	2014/15 ($)	2015/16 ($)	2016/17 ($)	2017/18 ($)
General	6,181,100	12,863,500	10,550,300	5,022,100	7,102,100
Water	1,150,300	586,200	1,671,900	729,900	2,770,100
Sewer	1,703,700	877,100	1,929,000	600,100	2,051,800
Total	9,035,100	14,326,800	14,151,200	6,352,100	11,924,000

General Fund

The value of works carried over to 2017/2018 for the General Fund are more ($2,080,000) than that carried over for the 2016/2017 year. Of the $7,102,100 of General Fund carryovers, approximately 53% ($3,792,800) is attributable to Local Roads and Drainage projects not completed in 2016/2017 to be carried forward to 2017/2018.

Water and Sewer Funds

Carryovers for the Water and Sewer Funds have increased by $2,040,200 and $1,451,700 respectively compared to the carryover applicable for the 2016/2017 financial year.

The following table outlines the project status of Local Roads & Drainage capital works carryovers for Councillors information where works are in progress or contracts awarded at the time this report has been prepared:

Table 2 – Schedule of Carryover works current status

Project	Carryover $	Project Status
Marvel St, Byron Bay - northern side Tennyson St to Middleton St	$60,000	Works not able to be commenced in last quarter of 2016/17 and will commence in 2017/18
Replacement of damaged Kerb and Gutter	$2,400	Works substantially completed in 2016/17. Carryover funding will be included with 2017/18 budgets and expended throughout 2017/18
2008/09 Bridge - O'Meara's	$217,800	A detailed design has been completed and a tender will be progressed for the replacement of 5 bridges
Bridges Capital Renewal Miscellaneous	$50,000	Work continues to be progressed including the South Arm footway at Brunswick Heads
Bridge - James	$40,100	A detailed design has been completed and a tender will be progressed
Tweed Street Master Plan (Design Only)	$20,000	Planning and investigation works in progress and will be in 2017/18
Lighthouse Road, Byron Bay	$20,000	Planning and investigation works not able to be commenced in last quarter of 2016/17 and will be completed in 2017/18
Federal Drive, Goonengerry, pavement upgrade	$55,000	Works completed in July 2017
22 Bangalow Road - Resolve Stormwater Fl	$59,900	Works not able to be commenced in last quarter of 2016/17 and will be completed in 2017/18
Project Investigation & Planning	$66,600	Ongoing budget to allow planning and investigation works for projects in 2017/18 ahead of likely construction in current or future financial years.
Bay lane overland flow path and system applification	$7,900	Planning and investigation works in progress and will be completed in 2017/18
8 Jubilee Ave - resolve flooding in front yard and nature strip	$4,500	Planning and investigation works in progress and will be completed in 2017/18
Massey Green Caravan Park Stormwater infrastructure renewal	$15,000	Planning and investigation works not able to be commenced in last quarter of 2016/17 and will be completed in 2017/18
16 Leslie Street - prevent flooding under house	$7,600	Works in progress at end of 2016/17 and will be completed in August 2017.
Byron St	$601,400	Planning and investigation works in progress and actual works will be completed in 2017/18 in stages outside peak visitor periods.
Belongil Bridge Pile Repairs	$282,600	Work will be completed in August
Settlement Rd	$11,000	Planning and investigation works in progress and will be completed in 2017/18
Orana Road, Ocean Shores	$57,000	Works completed in July 2017
Coomburra Crescent, Ocean Shores	$260,300	Works in progress at end of 2016/17. Now complete
Ewingsdale Rd/Sunrise Boulevard Roundabout	$1,442,200	Works in progress at end of 2016/17 and estimated completion will be October 2017.
Fowlers Lane Causeway	$131,200
Main Arm Road - Blind Mouth Causeway Upgrade	$38,200	Grant application submitted to the NBRP and tenders will be called in late 2017
Clifford St intersection with Broken Head	$19,200	Planning and investigation works in progress and will be completed in 2017/18
Grays Lane, Tyagarah, pavement upgrade	$10,000	Planning and investigation works in progress and will be completed in 2017/18
Balemo Dr O/S shared path Orana Dr to Pacific Hwy	$10,400	Planning and investigation works in progress and will be completed in 2017/18. Actual construction in 2017/18 is dependant upon receipt of a grant from the Roads & Maritime Service (RMS).
Broken Head Rd, B/Bay shared path Golf Club to Clifford St	$36,700	Planning and investigation works in progress and will be completed in 2017/18. Actual construction in 2017/18 is dependant upon receipt of a grant from the RMS.
Byron St, Bangalow shared path near the Feros Village	$40,900	Works not able to be commenced in last quarter of 2016/17 and will be completed in August 2017
Traffic Study Strategic Network Analysis	$197,300	Request for Quotation process completed and consultant engaged for desktop review of existing study and preparation of Request for Tender (RFT) for new study. RFT invitations anticipated in early October 2017.
McGettigans / Ewingsdale Road R/about investigations	$27,600	Planning and investigation works in progress and will be completed in 2017/18. Actual construction in 2017/18 is dependant upon receipt of a grant from the RMS.
Total	$3,792,800.00

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 22 June 2017 via Resolution 17-268, the expenditure items subject of this report were not included in the 2017/2018 Budget Estimates but now need to be. The intent of this report is to seek Council approval to revote the carryovers from the 2016/2017 financial year and to adopt the budget allocation carryovers for inclusion in the 2017/2018 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) 2016/2017 considered by Council at its Ordinary Meeting held on 2 February 2017 (Resolution 17-011).

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.

Report No. 4.3 Council Budget Review - 1 April 2017 to 30 June 2017

Directorate: Corporate and Community Services

Report Author: James Brickley, Manager Finance

File No: I2017/1084

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 2017.

The Quarterly Budget Review for the June 2017 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 Council’s consideration and authorisation.

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

The report also provides an indication of the financial position of the Council at 30 June 2017. It should be noted that the figures provided are subject to completion and audit of the Council’s Financial Statements for 2016/2017. Any major variances to the estimated financial position for the 2016/2017 financial year will be included as part of the report adopting the financial statements during October 2017.

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

1. That Council authorises the itemised budget variations as shown in Attachment 2 (#E2017/79490) which includes the following results in the 30 June 2017 Quarterly Review of the 2016/2017 Budget:

General Fund - $0 change in Unrestricted Cash Result

a) General Fund - $12,866,200 increase in reserves

b) Water Fund - $5,528,900 increase in reserves.

c) Sewerage Fund - $4,959,400 increase in reserves

Attachments:

1 Budget Variations for General, Water and Sewerage Funds, E2017/79487 , page 43 ⇩

2 Itemised Listing of Budget Variations for General, Water and Sewerage Funds, E2017/79490 , page 109⇩

3 Integrated Planning and Reporting Framework (IP&R) required Quarterly Review Statement, E2017/79489 , page 119⇩

Report

Council adopted the 2016/2017 budget on 29 June 2016 via Resolution 16-348. It also considered and adopted the budget carryovers from the 2015/2016 financial year, to be incorporated into the 2016/2017 budget at its Ordinary Meeting held on 25 August 2016 via Resolution 16-446. Since that date, Council has reviewed the budget taking into consideration the 2015/2016 Financial Statement results and progress through the first three quarters of the 2016/2017 financial year. This report considers the June 2017 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 29 June 2016 plus the adopted carryover budgets from 2015/2016 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 2017.

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 2017 for all Council’s reserves.

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

Office of Local Government Budget Review Guidelines:-

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

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

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

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

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

o Consolidated

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

o 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

The above components are included in Attachment 3:-

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

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

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 2017 of each reserve to show a total cash position of reserves with any difference between that position and total cash and investments held as available cash and investments. It should be recognised that the figure is at a point in time and may vary greatly in future quarterly reviews pending on cash flow movements.

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

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

o 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

o 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 2016/2017 financial year projected to 30 June 2017.

2016/2017 Budget Review Statement as at 30 June 2017	Original Estimate (Including Carryovers) 1/7/2016	Adjustments to June 2017 including Resolutions*	Proposed June 2017 Review Revotes	Revised Estimate 30/6/2017
Operating Revenue	75,503,200	2,371,800	4,187,200	82,062,200
Operating Expenditure	76,715,900	2,337,300	(1,746,900)	77,306,300
Operating Result – Surplus/Deficit	(1,212,700)	34,500	5,934,100	4,755,900
Add: Capital Revenue	19,841,900	(9,209,700)	2,416,800	13,049,000
Change in Net Assets	18,629,200	(9,175,200)	8,350,900	17,804,900
Add: Non Cash Expenses	12,515,100	0	0	12,515,100
Add: Non-Operating Funds Employed	1,673,000	0	(1,638,100)	34,900
Subtract: Funds Deployed for Non-Operating Purposes	(60,072,800)	12,030,400	17,241,700	(30,800,700)
Cash Surplus/(Deficit)	(27,255,500)	2,855,200	23,954,500	(445,800)
Restricted Funds – Increase / (Decrease)	(27,293,100)	2,892,800	23,954,500	(445,800)
Forecast Result for the Year – Surplus/(Deficit) – Unrestricted Cash Result	37,600	(37,600)	0	0

GENERAL FUND

In terms of the General Fund projected Unrestricted Cash Result the following table provides a reconciliation of the estimated position as at 30 June 2017:

Opening Balance – 1 July 2016	$1,145,200
Plus original budget movement and carryovers	$37,600
Council Resolutions July – September Quarter	0
September Review – increase/(decrease)	0
Council Resolutions October – December Quarter	0
December Review – increase/(decrease)	(40,900)
Council Resolutions January – March Quarter	0
March Review – increase/(decrease)	3,300
Council Resolutions April – June Quarter	0
Recommendations within this Review – increase/(decrease)	0
Forecast Unrestricted Cash Result – Surplus/(Deficit) – 30 June 2017	0
Estimated Unrestricted Cash Result Closing Balance – 30 June 2017	$1,145,200

The General Fund financial position overall has not changed as a result of this budget review. The proposed budget changes are detailed in Attachment 1 and summarised further in this report below.

Council Resolutions

There were no Council resolutions during the April to June 2017 quarter that impacted the overall 2016/2017 budget result.

Budget Adjustments

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

Directorate	Revenue Increase/ (Decrease) $	Expenditure Increase/ (Decrease) $	Accumulated Surplus (Working Funds) Increase/ (Decrease) $
General Manager	0	0	0
Corporate & Community Services	1,776,500	1,827,100	(50,600)
Infrastructure Services	(7,445,600)	(7,486,700)	41,100
Sustainable Environment & Economy	(433,600)	(443,100)	9,500
Total Budget Movements	(6,102,700)	(6,102,700)	0

Budget Adjustment Comments

Within each of the Directorates of the General Fund, are a series of budget adjustments identified in detail at Attachment 1 and 2. More detailed notes on these are provided in Attachment 1 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 2016/2017 financial year not completed to be added to the 2017/2018 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 2017 increased significantly compared to the anticipated reduction in cash expected. Council was expecting to see a reduction of $27.255 million in its cash position for the 2016/2017 financial year as per the original adopted budget estimates, however current indications are that the June 2017 Quarter Budget Review in conjunction with previous Quarterly Budget Reviews is requiring a $23.355 million transfer back to reserve funds.

Specific Cash Position

Upon reconciling Council’s total cash and investment position at 30 June 2017 compared to the reserve movements outlined in this Budget Review, there is an indication that Council will have total unrestricted cash and investments of $1,252,500. Council commenced the 2016/2017 financial year with unrestricted cash of $1,145,200 which was an attainment of one of Council’s short term financial goals. If Council chooses to maintain this balance at 30 June 2017, it therefore indicates there is a further $107,300 that could be allocated to reserve in addition to the movement contained in the Budget Review. The actual amounts that will be eventually allocated will be contingent upon finalisation of the 2016/2017 financial statements yet to be finalised and subject to external audit and further reporting to Council.

WATER FUND

After completion of the 2015/2016 Financial Statements the Water Fund as at 30 June 2016 has a capital works reserve of $2,723,000 and held $10,549,100 in section 64 developer contributions.

The estimated Water Fund reserve balances as at 30 June 2017, and forecast in this Quarter Budget Review, are derived as follows:

Capital Works Reserve

Opening Reserve Balance at 1 July 2016	$2,723,000
Plus original budget reserve movement	1,553,000
Less reserve funded carryovers from 2015/2016	(346,800)
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	(53,700)
Resolutions October - December Quarter – increase / (decrease)	0
December Quarterly Review Adjustments – increase / (decrease)	(289,700)
Resolutions January - March Quarter – increase / (decrease)	(250,000)
March Quarterly Review Adjustments – increase / (decrease)	356,600
Resolutions April - June Quarter – increase / (decrease)
June Quarterly Review Adjustments – increase / (decrease)	1,251,800
Forecast Reserve Movement for 2016/2017 – Increase / (Decrease)	2,221,200
Estimated Reserve Balance at 30 June 2017	$4,944,200

Section 64 Developer Contributions

Opening Reserve Balance at 1 July 2016	$10,549,100
Plus original budget reserve movement	(7,794,000)
Less reserve funded carryovers from 2015/2016	(383,100)
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	1,270,000
Resolutions October - December Quarter – increase / (decrease)	0
December Quarterly Review Adjustments – increase / (decrease)	(1,740,900)
Resolutions January - March Quarter – increase / (decrease)	0
March Quarterly Review Adjustments – increase / (decrease)	514,000
Resolutions April - June Quarter – increase / (decrease)	0
June Quarterly Review Adjustments – increase / (decrease)	4,277,100
Forecast Reserve Movement for 2016/2017 – Increase / (Decrease)	(3,856,900)
Estimated Reserve Balance at 30 June 2017	$6,692,200

Movements for Water Fund can be seen in Attachment 1 with a proposed estimated increase to reserves (including S64 Contributions) overall of $5,528,900 from this Review.

SEWERAGE FUND

After completion of the 2015/2016 Financial Statements the Sewer Fund has a capital works reserves of $5,153,600 and plant reserve of $827,800. It also held $8,760,300 in section 64 developer contributions.

Capital Works Reserve

Opening Reserve Balance at 1 July 2017	$5,153,600
Plus original budget reserve movement	(814,200)
Less reserve funded carryovers from 2015/2016	131,500
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	1,071,600
Resolutions October - December Quarter – increase / (decrease)	0
December Quarterly Review Adjustments – increase / (decrease)	(427,100)
Resolutions January - March Quarter – increase / (decrease)	0
March Quarterly Review Adjustments – increase / (decrease)	1,668,500
Resolutions April - June Quarter – increase / (decrease)	0
June Quarterly Review Adjustments – increase / (decrease)	604,000
Forecast Reserve Movement for 2016/2017 – Increase / (Decrease)	2,234,300
Estimated Reserve Balance at 30 June 2017	$7,387,900

Plant Reserve

Opening Reserve Balance at 1 July 2016	$827,800
Plus original budget reserve movement	0
Less reserve funded carryovers from 2015/2016	0
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	0
Resolutions October - December Quarter – increase / (decrease)	0
December Quarterly Review Adjustments – increase / (decrease)	0
Resolutions January - March Quarter – increase / (decrease)	0
March Quarterly Review Adjustments – increase / (decrease)	0
Resolutions April - June Quarter – increase / (decrease)	0
June Quarterly Review Adjustments – increase / (decrease)	0
Forecast Reserve Movement for 2016/2017 – Increase / (Decrease)	0
Estimated Reserve Balance at 30 June 2017	$827,800

Section 64 Developer Contributions

Opening Reserve Balance at 1 July 2016	$8,760,300
Plus original budget reserve movement	(2,785,400)
Less reserve funded carryovers from 2015/2016	(503,200)
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	1,074,700
Resolutions October - December Quarter – increase / (decrease)	0
December Quarterly Review Adjustments – increase / (decrease)	(2,449,800)
Resolutions January - March Quarter – increase / (decrease)	0
March Quarterly Review Adjustments – increase / (decrease)	1,131,800
Resolutions April - June Quarter – increase / (decrease)	0
June Quarterly Review Adjustments – increase / (decrease)	4,355,400
Forecast Reserve Movement for 2016/2017 – Increase / (Decrease)	823,500
Estimated Reserve Balance at 30 June 2017	$9,583,800

Movements for the Sewerage Fund can be seen in Attachment 1 with a proposed estimated overall increase to reserves (including S64 Contributions) of $4,959,400 from this review.

Legal Expenses

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

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

a fund basis to June 2017.

Total Legal Income & Expenditure as at 30 June 2017

Program	2016/2017 Budget ($)	Actual ($)	Percentage To Revised Budget
Income
Legal Expenses Recovered	0	0	0%
Total Income	0	0	0%

Expenditure
General Legal Expenses	200,000	100,400	50.2%
Total Expenditure General Fund	200,000	100,4000	50.2%

Note: The above table does not include costs incurred by Council in proceedings after 30 June 2017 or billed after this date along with legal costs incurred with the Byron Bay Bypass project that have currently been charged to the project.

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

Legal Reserve

Opening Reserve Balance at 1 July 2016	$692,300
Less Legal Service Officer	(65,300)
Less Road Reconstruction Works (Various – Original Budget)	(175,000)
Add unspent budget from 2016/17	62,800
Estimated Reserve Balance at as at 30 June 2017	$514,800

Financial Implications

The 30 June 2017 Quarter Budget Review of the 2016/2017 Budget Estimates forecasts no change estimated budget attributable to the General Fund assuming all revotes of income and expenditure reported for Council’s consideration are approved. Overall, the short term financial position of Council still needs to be carefully monitored on an ongoing basis. 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 2017, Council is likely to have maintained an unrestricted cash balance currently estimated at least $1,145,200. This is another achievement for Council maintaining this result throughout the financial year.

Notwithstanding that Council has maintained during the year its short term funding liquidity goal, 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.

The outcomes associated with this Budget Review need to be considered in context that they are indicative financial outcomes for the 2016/2017 financial year. Council is yet to finalise its financial statements for the year ended 30 June 2017 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 2017 at its Ordinary Meeting to be held on 19 October 2017 where the final financial results for the year will be presented.

This report was also considered by the Finance Advisory Committee at its meeting held on 17 August 2017.

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 2016/2017 financial year, having consideration of the original estimate of income and expenditure at the 30 June 2017 Quarter Budget Review.

This opinion is based on the estimated Unrestricted Cash Result position and the maintenance overall of a balanced budget result for the 2016/2017 financial year overall.

Venue	Conference Room, Station Street, Mullumbimby
Date	Thursday, 17 August 2017
Time	2.00pm