Agenda of Finance Advisory Committee Meeting

BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services 4.1

Staff Reports - Corporate and Community Services

Report No. 4.1 2017/18 Financial Sustainability Plan - Update on the Action Implementation Plan as at 30 June 2018

Directorate: Corporate and Community Services

Report Author: James Brickley, Manager Finance

File No: I2018/942

Theme: Corporate Management

Financial Services

Summary:

Council at its Ordinary meeting held on 14 December 2017 adopted the 2017/18 Financial Sustainability Plan (FSP) via Resolution 17-647 without change, following endorsement of the Draft 2017/18 FSP by the Finance Advisory Committee at its Meeting held on 16 November 2017.

The FSP adopted by Council is for the 2017/18 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 2017/18 FSP, for the period to 30 June 2018.

It is also proposed that this will be the last quarterly report on the Financial Sustainability Plan as it is proposed this be incorporated into Council’s Long Term Financial Plan.

RECOMMENDATION:

1. That the update report to 30 June 2018 on the 2017/2018 Financial Sustainability Plan Action Implementation Plan (E2018/43656) be received and noted.

2. That a separate Financial Sustainability Plan no longer be developed from the 2018/2019 financial year onwards as it will be incorporated into Council’s Long Term Financial Plan.

Attachments:

1 FSP Action Implementation Plan as at 30 June 2018, E2018/43656 , page 7⇩

Sustainable icon TICK

Report

Background

The FSP adopted by Council is for the 2017/18 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.

2017/18 Financial Sustainability Plan

This report has been prepared to provide the Finance Advisory Committee with an update report on the implementation of the actions in the 2017/18 FSP, for the period to 30 June 2018.

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

· Volunteerism

· Collaborations and Partnerships

· Asset Management

· Long Term Financial Planning

· Environmental Projects

· Continuous Improvement

· Finance Performance Indicators

Future reports

The principles and actions in the Financial Sustainability Plan are incorporated in Council’s Delivery Program and Operational Plans. Progress on actions in the Operational Plan are to be reported to Council on a quarterly basis.

Council has implemented the majority of the reforms in plan and it has served its purpose.

It is also proposed to incorporate the principles of the Financial Sustainability Plan into the Council’s Long Term Financial Plan (LTFP) document as a basis for formulation of the LTFP and remove the duplication of items that exist in the Financial Sustainability Plan also contained in the Delivery Plan/Operational Plan.

It is therefore proposed that the FSP is concluded and there will be no further quarterly reporting of any status updates to the Finance Advisory Committee.

Financial Implications

The Finance Advisory Committee by referencing Attachment 1 will see progress against various action items associated with the FSP. At this stage up to 30 June 2018, there have not been any positive financial outcomes derived from the 2017/18 FSP. This is essentially due that whilst Council has been able to maintain financial discipline during the 2017/18 financial year, the focus has been more on delivering outcomes.

As a general comment, Council may recall at the 2 February 2017 Ordinary Council Meeting, Council resolved to increase effective from 1 July 2017 pay parking hour charges by $1 and the capped fee for four hours by $2. This fee increase has been applicable since 1 July 2017 and as a result pay parking meter revenue at 30 June 2018 is $3,391,214 whereas at 30 June 2017 it was $2,819,542. This represents an increase of $571,672 and excludes meter revenue from Wategoes that commenced in December 2016 for complete comparison. Whether the revenue increase is due simply to the fee increase, greater use of the pay parking scheme or a combination of both, there is additional revenue for Council to utilise.

Council was also expecting to realise the proceeds from the sale of the Station Street Land to North Coast Community Housing to which part of this revenue will fund projects in 2017/2018 and proposed to fund further land development projects as part of the 2018/2019 budget. Unfortunately, settlement has been delayed and is now scheduled for September 2018.

It is also 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.

Statutory and Policy Compliance Implications

Council Resolutions 13-148, 13-238, 14-326, 15-606 and 17-011.

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 4.1 - 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 2018	Progress Update 30 June 2018 Reports are prepared following the quarterly Strategic Procurement Steering Committee meetings to the Executive Team 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 2018 Monthly Management Finance Reports are prepared by the Manager Finance 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 2018 A copy of the Monthly Management Finance Report is distributed by the Director of 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 to 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 2018 The 2017/18 FSP was adopted by Council at its Ordinary Meeting held on 14 December 2017 (Res 17-647). This is the third progress report prepared for the Finance Advisory 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 2018 Any identified expenditure savings will be included in the 30 June 2018 Quarter Budget Review report to this meeting of the Finance Advisory Committee Meeting.
6. Report to Council any recommendations regards policy changes.	DC&CS	As required	Progress Update 30 June 2018 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.	DC&CS	June 2018	Progress Update 30 June 2018 The Internal Working Group has 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 the Executive Team.
2. Internal Staff Working Group/staff to report to the Executive Team any proposed opportunities for deriving new/additional revenue.	DC&CS	June 2018	Progress Update 30 June 2018 Reported as required.
3. Report to the Finance Committee and/or the Council any proposed opportunities for deriving new/additional revenue.	DC&CS	Quarterly	Progress Update 30 June 2018 Reported as required.
4. Report to Council any recommendations regarding policy change and/or increases to existing or new revenue sources.	DC&CS	June 2018	Progress Update 30 June 2018 Reported as required.
5. Prepare submissions and lobby for grant funding for significant infrastructure projects.	DC&CS	June 2018	Progress Update 30 June 2018 The Grant applications submitted by Council have been supported, where appropriate, with submissions to Local Members and the responsible State or Federal Minister. The Grant applications submitted are detailed in the monthly Grants Report to Council.
6. Research non-residential revenue sources (if any) and report to the Finance Advisory Committee quarterly.	DC&CS	June 2018	Progress Update 30 June 2018 Reported as required.

Strategy Element: Land Review and Property Development

Actions	Action Owner	Action Due Date	Management Comments
General Fund
1. Lot 12 Bayshore Drive – Future use assessment through EOI and possible PPP.	DIS	June 2018	Progress Update 30 June 2018 No change - Council has placed the proposed EOI on a temporary hold while potential sources of government funding are being explored.
2. Station Street – Complete sale to North Coast Community Housing.	DIS	June 2018	Progress Update 30 June 2018 Subdivision registered, final settlement negotiations progressing.
3. Yaran Road, Tyagarah Airfield – Planning continuing.	DIS	June 2018	Progress Update 30 June 2018 Planning on Council resolution pertaining to a Food Hub progressing.
4. Lot 22 Mullumbimby – Progress rezoning and implement EoI in accordance with Res 17-260.	DIS	June 2018	Progress Update 30 June 2018 Gateway approved. Supporting studies for exhibition progressing eg heritage, ASS, geotech etc.
5. Bayshore Drive Works Depot, Byron Bay (Lot 102, DP1087996, 1.79ha) – Progress relocation project.	DIS	June 2018	Progress Update 30 June 2018 Consultants Complete Urban are working on additional assessments before completing their options report. This work is continuing.
6. Various small surplus land parcels – Continue program.	DIS	June 2018	Progress Update 30 June 2018 Various land matters being assessed and progressed.
Water Fund
7. Fletcher Street –Development approval and construction procurement.	DIS	June 2018	Progress Update 30 June 2018 No change – architects on hold pending DCP project outcomes.
Sewer Fund
8. South Byron STP – Implement Res 17-225 by finalising remediation and Future Use assessment through EoI and possible PPP.	DIS	June 2018	Progress Update 30 June 2018 EOI reported to Council and four proposals to progress to the selective tender stage. Remediation progressing.
9. Brunswick Heads STP – Complete remediation and evaluate future use options including possible depot relocation.	DIS	June 2018	Progress Update 30 June 2018 Completed.
10. Mullumbimby STP – Complete remediation.	DIS	June 2018	Progress Update 30 June 2018 This project will now be completed in 2018/19.
11. Brunswick Valley STP, Vallances Road – Implement Res 17-054 PoM outcomes.	DIS	June 2018	Progress Update 30 June 2018 POM actions included in 2018/19 Operations Plan.
12. Bangalow STP – Site could be considered for solar farm options.	DIS	June 2018	Progress Update 30 June 2018 Storage of bridge timber components commenced.
13. Lot 4 Mill Street – Complete site access acquisition process and implement EoI in accordance with Res 17-260.	DIS	June 2018	Progress Update 30 June 2018 Liaison continuing with John Holland Rail.
Waste Fund
14. Lot 15 Dingo Lane, Myocum – Site to be retained in accordance with the Resource Recovery Master Plan.	DIS	June 2018	Progress Update 30 June 2018 Solar Farm project progressing and will be included on the September SPW Agenda with Resource Analytics attending to provide Councillors an update.
15. Lot 16 Dingo Lane, Myocum – Implement Res 17-228 and sell to use funds to pay down loans to reduce debt servicing costs.	DIS	June 2018	Progress Update 30 June 2018 Sold.

Strategy Element: Strategic Procurement

Actions	Action Owner	Action Due Date	Management Comments
1. Develop a compliance and audit plan.	DC&CS	June 2018	Progress Update 30 June 2018 Completed.
2. Review and further develop contracts management processes and system.	DC&CS	June 2018	Progress Update 30 June 2018 Contract management system has been implemented. This action is now complete.
3. Develop ongoing supplier education program to assist local business.	DC&CS	June 2018	Progress Update 30 June 2018 Supplier education program to be included in 2018/19 Procurement Plan.
4. Review Stores procurement.	DC&CS	June 2018	Progress Update 30 June 2018 Stores Procurement Review to be undertaken in 2018/19.
5. Implement Stores review recommendations.	DC&CS	June 2018	Progress Update 30 June 2018 To be completed after Stores review is undertaken.
6. Introduce negotiation processes and training.	DC&CS	June 2018	Progress Update 30 June 2018 To be included in 2018/19 Procurement Plan.

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.	Manager Finance	June 2018	Progress Update 30 June 2018 The Manager Finance 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 2016/17 budget recommended to be carried over to the 2017/18 Budget be reported to Council following the end of the 2016/17 Financial Year.	Council	June 2018	Progress Update 30 June 2018 This item is complete. Carryovers from the 2016/2017 to be added to the 2017/2018 budget were considered by the Finance Advisory Committee at its Meeting held on 17 August 2017. These were later adopted by Council at its Ordinary Meeting held on 24 August 2017 (Res 17-322).
3. That the monthly Finance Report be distributed to Councillors on a monthly basis.	Manager Finance	June 2018	Progress Update 30 June 2018 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.	DC&CS	June 2018	Progress Update 30 June 2018 This project is ongoing and if applicable, policies once reviewed will be submitted to Council for consideration.
5. That the Special Rate Variation (SRV) and policy frameworks established through Res 17-222 be implemented and reported quarterly to the Finance Advisory Committee.	Manager Finance	June 2018	Progress Update 30 June 2018 The first quarterly update to the Finance Advisory Committee occurred on 16November 2017 and included an expenditure table detailing how SRV funds have been expended for the first quarter of the 2017/2018 financial year. There is a subsequent updates provided to the 15 February 2018, 17 May 2018 and 16 August 2018 Finance Advisory Committee Meetings.

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 2018	Progress Update 30 June 2018 Working group identified and meetings commenced.
2. Undertake an organisation wide audit of current volunteer activities.	ET	June 2018	Progress Update 30 June 2018 As part of the proposed internal working group, an audit of current volunteering opportunities will be undertaken.
3. Recognition of current volunteers.	ET	June 2018	Progress Update 30 June 2018 Given limited take up of volunteer recognition event in 2017, and limited staff resources, it is proposed to not undertake a recognition event in 2018, rather to work towards a volunteer engagement event later in the calendar year, which seeks to both recognise the work of volunteers, and understand how Council can better support current volunteers.
4. Undertake a capacity building project with Council S355 Committees.	Manager Community Development	June 2018	Progress Update 30 June 2018 Project completed.

Strategy Element: Collaborations and Partnerships

Actions	Action Owner	Action Due Date	Management Comments
1. Progress investigation of potential commercial opportunity projects currently underway such as: a) Redevelopment of the Fletcher Street (former Library Building) site; b) Management and development of the Tyagarah Aerodrome; c) Redevelopment of Byron Bay Swimming Pool/Café.	DIS	June 2018	Progress Update 30 June 2018 a) Architects on hold while DCP project is progressed. b) Planning on Council resolution pertaining to a Food Hub progressing
2. Progress with calling Expressions of Interest (or another type of competitive processes) currently underway, to investigate potential partnership opportunity on the following valuable community land sites: a) Lot 12 Bayshore Drive, Byron Bay. b) 156 (Lot 22) Stuart Street, Mullumbimby. c) 3 Broken Head Road, Suffolk Park (former South Byron Sewerage Treatment Plant site). d) Lot 4 Mill Street, Mullumbimby.	DIS	June 2018	Progress Update 30 June 2018 a) Council has placed the proposed EOI on a temporary hold while potential sources of government funding are being explored b) Gateway approved. Supporting studies for exhibition progressing eg heritage, ASS, geotech etc c) EOI reported to Council and four proposals to progress to the selective tender stage. Remediation progressing. d) John Holland Rail have advised that sale will be possible late 2018 early 2019. Liaison continuing with JHR.
3. For the Supporting Partnerships Policy, develop: a) tools, guides and information for community and future partners on Council’s Partnership Policy; b) a public web-based register to provide community with information on upcoming or potential partnerships and partnership projects; c) a Communications Strategy to support the community becoming and remaining informed about all things ‘Partnership’; d) internal procedures and processes for management of potential collaboration and partnership opportunities.	Manager Corporate Services	June 2018	Progress Update 30 June 2018 Policy, guidelines and register available online. Communications delivered in line with each project.
4. Provide reports to ET on potential collaboration, partnership and commercial opportunities when they are identified.	ET/Managers	June 2018	Progress Update 30 June 2018 Reported as required. To highlight just a couple of examples this quarter, Council[MS1] : · Successfully developed the Conferencing Byron and Byron Business Events Bureau and this quarter built a collaboration with Destination North Coast to expand the program to include regional membership. [MS2] · Opened a branch office in Byron providing general services to residents possible thanks to collaboration with operators of the Byron Visitor Centre.[MS3] · Partnered with Tweed Shire Council to develop and others such as, Sustain Northern Rivers Energy Group to peer review, the “Power Up – Northern Rivers Electric Vehicle Strategy”[MS4] . · Entered into discussion with community members over the establishment and ongoing maintenance of a community garden on public land at Red Bean Close Suffolk Park[MS5] · Agreed to be a partner in the Richmond River Governance Project, to develop a governance and funding framework to address poor river health issues affecting the Richmond River and its communities.[MS6]

Strategy Element: Asset Management

Actions	Action Owner	Action Due Date	Management Comments
1. Update the Strategic Asset Management Plan including access considerations and other emerging issues.	DIS	June 2018	Progress Update 30 June 2018 TAMP exhibited, report to August meeting of Council for adoption.
2. Improve the integrity of the Asset Management system by implementing actions detailed in key audit reports.	DIS	June 2018	Progress Update 30 June 2018 Key progress being made on implementation of the CVR.
3. Implement asset modelling in accordance with Special Rate Variation requirements.	DIS	June 2018	Progress Update 30 June 2018 My Predictor modelling capacity being deployed on a as needs basis.
4. Review annually integration of asset management plans, capital works program, S94 Plan, S64 Plan and LTFP.	DIS	June 2018	Progress Update 30 June 2018 The 2018/19 budget includes these requirements and has been adopted.
5. Engage with the community to determine the customer LOS for accessible transport.	DIS	June 2018	Progress Update 30 June 2018 CSP outcomes embedded in the new CSP. Detailed LOS survey for Transport infrastructure completed and to be reported to August TIAC.
6. Complete the annual infrastructure report (SS7).	DIS	June 2018	Progress Update 31 March 2018 Completed.
7. Complete condition and access audit inspections of community buildings.	DIS	June 2018	Progress Update 30 June 2018 Work has progressed and has now been funded in 2018/19.
8. Implement replacement of high priority road bridges across the Shire	DIS	June 2018	Progress Update 30 June 2018 Works commenced in April and are ahead of schedule.

Strategy Element: Long Term Financial Planning

Actions	Action Owner	Action Due Date	Management Comments
1. Develop the 2017-2028 Long Term Financial Plan following adoption of the 2017/18 Operational Plan and report to the Finance Advisory Committee/Council prior to 16 November 2017.	Manager Finance	June 2018	Progress Update 30 June 2018 The next version of the Long Term Financial Plan is yet to be commenced and is behind schedule. It is anticipated this was to be completed and be reported to the 17 May 2018 Finance Advisory Committee Meeting. This has not been able to be achieved and it is now expected to be reported to the 16 August 2018 Finance Advisory Committee.
2. Further update the 2017-2028 Long Term Financial Plan to incorporate outcomes from the development of the new Community Strategic Plan in conjunction with the adoption of the 2018/19 Operational Plan and Budget Estimates to be reported to Council in June 2018.	Manager Finance	June 2018	Progress Update 30 June 2018 To be undertaken following the adoption of the 2018/2019 Budget Estimates and expected to be reported to the 16 August 2018 Finance Advisory Committee Meeting.

Actions

Action Owner

Action Due Date

Management Comments

1. Develop the 2017-2028 Long Term Financial Plan following adoption of the 2017/18 Operational Plan and report to the Finance Advisory Committee/Council prior to 16 November 2017.

Manager Finance

June 2018

Progress Update 30 June 2018

The next version of the Long Term Financial Plan is yet to be commenced and is behind schedule. It is anticipated this was to be completed and be reported to the 17 May 2018 Finance Advisory Committee Meeting. This has not been able to be achieved and it is now expected to be reported to the 16 August 2018 Finance Advisory Committee.

2. Further update the 2017-2028 Long Term Financial Plan to incorporate outcomes from the development of the new Community Strategic Plan in conjunction with the adoption of the 2018/19 Operational Plan and Budget Estimates to be reported to Council in June 2018.

Manager Finance

June 2018

Progress Update 30 June 2018

To be undertaken following the adoption of the 2018/2019 Budget Estimates and expected to be reported to the 16 August 2018 Finance Advisory Committee Meeting.

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 2018	Progress Update 30 June 2018 Projects underway include Environmental Upgrade Agreements (EUAs) feasibility and partner identification with the aim of getting more solar on business rooftops; development of large scale solar farm at Dingos Lane; Discussions with other councils about the prospect of entering into a PPA with a large centralised solar farm; . working with COREM and Shoalhaven Council to determine the feasibility of the Solar Gardens project in Byron Shire as part of the ARENA grant funding; . ~99kW solar system on the Mullumbimby administration carpark; EV charger expansion opportunities; car share feasibility in Byron Bay; and the establishment of the Sustainability and Emissions Reduction Advisory Committee.
2. Work collaboratively with the Zero Emissions Byron project to identify actions that go beyond the Byron Shire Low Carbon Strategy.	DSEE	June 2018	Progress Update 30 June 2018 Byron Shire Council was successful in being selected by the NSW Office of Environment and Heritage to have the Byron Shire Council Community Emissions Profile Report. This report has been shared with ZEB and a workshop on the findings presented to staff and ZEB. Sourcing and analysis of community GHG emissions data has long been a cause of frustration for Australian councils. A decade ago, hundreds of councils had access to “top-down” community data provided by ICLEI Oceania based on ABS (Australian Bureau of Statistics) and ABARES (Australian Bureau of Agricultural and Resource Economics and Sciences) data. However, the development of this data ceased in 2009 with the closure of the Cities for Climate Protection funding. Over the last 3 years, Ironbark Consulting have been working with Australian councils, ICLEI Oceania, the Global Covenant of Mayors for Climate & Energy, Distribution Network Service Providers (DNSPs) and other data providers to develop community greenhouse gas profiles for Australian councils that are compliant with international reporting standards. This has included the development and submission of GPC-compliant community inventories for the purpose of complying with the Global Covenant of Mayors. ZEB is also a member of the newly formed SERAC.

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 2018

Progress Update 30 June 2018

Projects underway include Environmental Upgrade Agreements (EUAs) feasibility and partner identification with the aim of getting more solar on business rooftops; development of large scale solar farm at Dingos Lane; Discussions with other councils about the prospect of entering into a PPA with a large centralised solar farm; . working with COREM and Shoalhaven Council to determine the feasibility of the Solar Gardens project in Byron Shire as part of the ARENA grant funding; . ~99kW solar system on the Mullumbimby administration carpark; EV charger expansion opportunities; car share feasibility in Byron Bay; and the establishment of the Sustainability and Emissions Reduction Advisory Committee.

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

DSEE

June 2018

Progress Update 30 June 2018

Byron Shire Council was successful in being selected by the NSW Office of Environment and Heritage to have the Byron Shire Council Community Emissions Profile Report. This report has been shared with ZEB and a workshop on the findings presented to staff and ZEB.

Sourcing and analysis of community GHG emissions data has long been a cause of frustration for Australian councils. A decade ago, hundreds of councils had access to “top-down” community data provided by ICLEI Oceania based on ABS (Australian Bureau of Statistics) and ABARES (Australian Bureau of Agricultural and Resource Economics and Sciences) data. However, the development of this data ceased in 2009 with the closure of the Cities for Climate Protection funding.

Over the last 3 years, Ironbark Consulting have been working with Australian councils, ICLEI Oceania, the Global Covenant of Mayors for Climate & Energy, Distribution Network Service Providers (DNSPs) and other data providers to develop community greenhouse gas profiles for Australian councils that are compliant with international reporting standards. This has included the development and submission of GPC-compliant community inventories for the purpose of complying with the Global Covenant of Mayors.

ZEB is also a member of the newly formed SERAC.

Strategy Element: Continuous Improvement

Actions	Action Owner	Action Due Date	Management Comments
Workforce
1. Management of excessive annual and long service leave, supported by introduction of online leave processes.	Managers & Manager P&C	June 2018	Progress Update 30 June 2018 As at March 2018, 63% of leave applications lodged across Council were online. On-line leave functionality implemented across work teams remains at 75% due to IT issues which are almost resolved. It is expected that on-line will be accessible by all staff by September 2018.
2. Management of sick leave – improvement effort to be focused on staff taking 10.5 days or more p/a.	Managers	June 2018	Progress Update 30 June 2018 In early July 2018, Manager P&C will provide Managers with information on staff who have accessed more than 6 days sick leave in the first 6 months of 2018.
3. Ongoing monitoring of overtime costs as a percentage of total employee costs.	Manager Organisation Development	June 2018	Progress Update 30 June 2018 Continuing as above. Overtime costs are reported to the Executive Team, with the information available to Managers, monthly.
4. Review and improve mapping of workforce to services (consistent with a review of Special Schedule 1).	Manager Organisation Development & Manager Finance	June 2018	Progress Update 30 June 2018 Underway as part of FY2018 reporting process.
Finance
5. Continue to invest in Finance Team members gaining qualifications and building capacity.	Manager Finance	June 2018	Progress Update 30 June 2018 There are currently two members undertaking long term study to gain qualifications of a tertiary nature, enabling capacity for current staff to broaden their knowledge and assist in strengthening the Finance team’s ability to step into various roles.
6. Review Manager Finance Position Description to confirm focus on strategic transformation and increased focus on business insight activities.	DC&CS and Manager Finance	June 2018	Progress Update 30 June 2018 Position description not yet reviewed, however the expectation of providing a greater emphasis on business insight is understood.
7. Finance Team to review operations and act on improvement opportunities with a focus on increasing business insight activity.	Manager Finance	June 2018	Progress Update 30 June 2018 Not able to be achieved but proposed to review BIS Management Reporting system available through Council’s Authority software.
8. Directorate nominees with Finance Team to review Cost Centres and Allocation under Special Schedule 1 categories.	Manager Finance	June 2018	Progress Update 30 June 2018 Finance continue to make progress with mapping of Special Schedule 1 in conjunction with each directorate.
Operations
9. Review IT spend to identify total IT spend and map capital and recurrent costs drivers to increase business understanding and assist with future budgeting	Manager Business Systems and Technology	June 2018	Progress Update 30 June 2018 Undertaken in setting annual budget and quarterly budget reviews.
Service Delivery
10. IS Managers, working with People and Culture Team, will develop actions focused on succession planning and increasing workforce diversity.	IS Managers	June 2018	Progress Update 30 June 2018 In progress, ongoing.
11. SEE Managers, working with People and Culture Team, will develop actions focused on succession planning	SEE Managers	June 2018	Progress Update 30 June 2018 In progress, ongoing.
12. Roads Services (Operating) – Working with Finance Team and benchmarking with comparable councils, Manager to critically review data, ascertain key drivers and develop an action plan to: 1. fully articulate and explain results; 2. develop a methodology to consistently measure genuine operating (non capital) expenditure. Including a focus on: a. Cost coding and accuracy of expense allocation; b. Depreciation expenses; c. Internal charging (including on-cost calculations and fleet charges); d. Capital expenditure required to be accounted for as operating expenditure (as per the Code of Accounting Practice).	Manager Works & Manager Finance	June 2018	Progress Update 30 June 2018 Ongoing and part of normal course of business.
13. Sewerage Services (Operating) – Working with Finance Team and benchmarking with comparable councils, Manager to critically review data, ascertain key drivers and develop an action plan to: 1. fully articulate and explain results; 2. develop a methodology to consistently measure genuine operating (non capital) expenditure. Including a focus on: a) Debt servicing impact on expenses; b) Position in lifecycle of plants; c) Impacts from environmental initiatives; d) Internal charging (on-cost calculations).	Manager Utilities	June 2018	Progress Update 30 June 2018 Ongoing and part of normal course of business.
Corporate Leadership
14. Include measurement of Customer Satisfaction in the biennial CATI Community Satisfaction Survey going forward.	Manager Organisation Development	June 2018	Progress Update 30 June 2018 Questions about satisfaction with Council services have been included in question set informing the procurement process. Survey will be conducted later this year.
15. Council meetings – Council continues to have some of the longest meetings and one of the top half a dozen councils with the highest number of resolutions. Councillors can review information provided and meeting procedures. Some considerations suggested in the Performance Excellence Report to help review meeting practices include: • Are our Council meetings passing resolutions in an efficient manner? • Are our meeting papers clear and concise? • Are agendas provided to Councillors well in advance to allow a timely review prior to the meeting? • Does Council conduct meeting performance reviews at the end of the year or end of the term? • Is Council up to date with best practice when it comes to council meetings? • Did the complexity of issues match the time taken to resolve them?	Manager Corporate Services	June 2018	Progress Update 30 June 2018 Corporate Services continues to work with business units on effective reports for Council. A revised report template will be implemented before 31 December 2018. Councillors are provided business papers in line with statutory timeframes. Amendments have been made to the Code of Meeting Practice to reduce public access time.

Strategy Element: Finance 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.	Manager Finance	Quarterly	Progress Update 30 June 2018 Reporting for the quarter ended 30 Sept 2017 reported to the FAC 16 November 2017. The December 2017 quarter reported at meeting on 15 February 2018. The 31 March 2018 quarter reported at meeting on 17 May 2018 and 30 June 2018 quarter to be reported at meeting on 16 August 2018.
2. Recognition through the QBR process of financial outcomes delivered by the FSP.	Manager Finance	Quarterly	Progress Update 30 June 2018 30 September 2017 QBR reported to FAC on 16 November 2017 and 31 December 2017 QBR reported to the 15 February 2018 FAC. 31 March 2018 QBR reported to the 17 May 2018 FAC. 30 June 2018 QBR will be reported to the 16 August 2018 FAC.
3. Structural changes to both revenue sources and expenditure will be updated in the base budget during the preparation of the 2018/19 Budget.	Manager Finance	June 2018	Progress Update 30 June 2018 2018/2019 Budget Estimates adopted by Council on 28 June 2018. Any structural changes required were included.
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.	Manager Finance	June 2018	Progress Update 30 June 2018 To be included in the development of the next version of the Long Term Financial Plan expected to be reported to the Finance Advisory Committee on 16 August 2018.
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.	Manager Finance	June 2018	Progress Update 30 June 2018 Assessment was completed as part of finalisation of 2016/2017 Financial Statements reported 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.	Manager Financer	June 2018	Progress Update 30 June 2018 To be included in the development of the next version of the Long Term Financial Plan expected to be reported to the Finance Advisory Committee on 16 August 2018.

BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services 4.3

Report No. 4.3 Carryovers for inclusion in the 2018/19 Budget

Directorate: Corporate and Community Services

Report Author: James Brickley, Manager Finance

File No: I2018/1522

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 2017/2018 financial year for inclusion in the 2018/2019 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 2017/2018 financial year to the 2018/2019 Budget Estimates. The report also identifies the funding for each recommended budget allocation carryover.

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

That the works and services, and the respective funding shown in Attachment 1 (#E2018/66991) be carried over from the 2017/2018 financial year and that the carryover budget allocations be adopted as budget allocation revotes for inclusion in the 2018/2019 Budget Estimates.

Attachments:

1 Carryovers for inclusion in 2018-2019 Budget - General, Water and Sewerage Funds, E2018/66991 , page 34 ⇩

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 2018/2019 Budget Estimates and the respective funding of each, relating to works and services not completed during the course of the 2017/2018 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 2018/2019 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 2018/2019 $398,500 more then the carryovers related to the 2017/2018 financial year. Council may recall that there was also an earlier assessment of carryovers that was conducted before finalisation of the 2018/2019 Budget Estimates with these being included at that point and catered for through the 31 March 2018 Quarter Budget Review.

Table 1 - Value of budget carryovers 2014/15 – 2018/19

Fund	2014/15 ($)	2015/16 ($)	2016/17 ($)	2017/18 ($)	2018/19 ($)
General	12,863,500	10,550,300	5,022,100	7,102,100	9,004,500
Water	586,200	1,671,900	729,900	2,770,100	879,500
Sewer	877,100	1,929,000	600,100	2,051,800	2,473,500
Total	14,326,800	14,151,200	6,352,100	11,924,000	12,357,500

General Fund

The value of works carried over to 2018/2019 for the General Fund are more ($1,902,400) than that carried over for the 2017/2018 year. Of the $9,004,500 of General Fund carryovers, approximately 40% ($3,645,400) is attributable to Local Roads and Drainage projects not completed in 2017/2018 to be carried forward to 2018/2019.

Major carryover items in this program are as follows:

· Main Arm Road – Blindmouth Causeway	$884,000
· Bayshore Drive/Ewingsdale Rd Roundabout	$660,300
· Rifle Range Road Intersection Upgrade	$341,600
· Traffic Study Strategic Network Analysis	$174,900
· Smart Cities and Suburbs 3D modelling solutions	$152,400
· Brunswick Heads Library Upgrade	$150,000
· Tyagarah Airfield Development and Subdivision	$185,500
· CPTIGS - Bus Shelters	$150,000
· Natural Disaster (June 2016) funding	$347,000
· RMS Natural Disaster	$525,600
· Civic Improvements Byron Bay Town Centre	$377,100
· Byron Bay Town Centre Masterplan	$154,100
· Multiuse of Rail Corridor	$180,000
· Bangalow Weir stage 2	$196,000
· Resource Recovery Centre Upgrade	$350,000
· Community Buildings Maintenance (SRV)	$507,100
· Suffolk Park Community Hall s94 upgrade	$176,700

Water and Sewer Funds

Carryovers for the Water Fund have decreased by $1,890,600 and the Sewer Fund has increased by $421,700 compared to the carryover applicable for the 2017/2018 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
Byron Bay Stormwater Drainage Maintenance	8,100	Works in progress that will be completed in 18/19.
Brunswick Heads Parking	104,700	Design works in progress that will be completed in 18/19.
Bridge - Parkers	58,300	Works in progress that will be completed in 18/19.
Bridge - Booyong	105,300	Works in progress that will be completed in 18/19.
Bridge - Eureka	43,400	Works to be undertaken in 18/19.
CPTIGS - Bus Shelters	150,000	Public Art process to be undertaken in 18/19 for bus shelter renewal as per Council resolution.
Main Arm Road - Blind Mouth Causeway Upgrade	884,000	Contract awarded and works in progress. Will be completed in 18/19.
Blindmouth & Main Arm Rds Intersection	142,600	Works to be done in conjunction with Main Arm causeway contract works
Remove last fish passage barrier on Byron	8,500	Works in progress that will be completed in 18/19.
Bayshore Drive/Ewingsdale Rd Roundabout	660,300	Contract awarded and works in progress. Will be completed in 18/19.
Bayshore Drive Roundabout – Artwork	60,000	Public Art works to be done in conjunction with contract roundabout works.
Access ramps and footpaths Works	12,000	Works to be done in conjunction with Railway Park upgrade works in 18/19.
Replacement of damaged Footpaths Shire	10,800	Works in progress that will be completed in 18/19.
Massinger St - Lawson to Carlyle	4,100	Design works in progress that will be completed in 18/19.
Shire Wide - PAMP (Pedestrian Access Man	53,600	Planning works in progress that will be completed in 18/19.
Survey, design and consultation Bay lane	12,200	Design works in progress that will be completed in 18/19.
Bridges Capital Renewal Miscellaneous	12,800	Works in progress that will be completed in 18/19.
Bridges - Brunswick Road Bridge	50,000	Works to be undertaken in 18/19.
Lighthouse Road, Byron Bay	9,600	Design works in progress that will be completed in 18/19.
22 Bangalow Road - Resolve Stormwater	59,900	Works to be undertaken in 18/19.
Project Investigation & Planning	59,400	Design works in progress that will be completed in 18/19.

Settlement Road	6,400	Design works in progress that will be completed in 18/19.
Byron St	26,000	Design works in progress that will be completed in 18/19.
Ewingsdale Rd/Sunrise Boulevard Roundabout	48,900	Land acquisition works to be completed in 18/19.
Shire Wide - Bike Plan	53,600	Planning works in progress that will be completed in 18/19.
Lismore Road Off-Road Shared Path Invest	19,400	Design works in progress that will be completed in 18/19.
Ewingsdale Road Off-Road Shared Path	19,000	Design works in progress that will be completed in 18/19.
SGB Street Drainage Upgrade – Elizabeth	10,000	Design works in progress that will be completed in 18/19.
The Pocket Road Segment 568.10 (CH1.79-2	17,000	Design works in progress that will be completed in 18/19.
Station Street, Bangalow	35,300	Design works in progress that will be completed in 18/19.
Lawson Street, Byron (Middleton to Tenny	9,200	Design works in progress that will be completed in 18/19.
Middleton St (Marvel St to Kingsley)	7,800	Design works in progress that will be completed in 18/19.
DESIGN ONLY - Kendall RAB	2,900	Design works in progress that will be completed in 18/19.
DESIGN ONLY - Ewingsdale Rd (Highway to	60,700	Design works in progress that will be completed in 18/19.
Deacon and Station Street Intersection B	61,400	Design works in progress that will be completed in 18/19.
Byron Street Byron Bay Jonson to Railway	7,900	Works in progress that will be completed in 18/19.
Shirley Street Widening Investigation	22,000	Design works in progress that will be completed in 18/19.
Gravel Resheeting	82,600	Works to be undertaken in 18/19.
Clifford St intersection with Broken Head	19,200	Design works in progress that will be completed in 18/19.
Boardwalk Design - Lawson to Butler Sts	30,000	Works to be undertaken in 18/19.
Seven Mile Beach Rd Investigations	20,000	Design works in progress that will be completed in 18/19.
Scarabelottis Lookout- Keys Bridge Reserve	15,000	Design works in progress that will be completed in 18/19.
Rifle Range Road Intersection Upgrade	341,600	Design works in progress that will be completed in 18/19.
Balemo Dr O/S shared path Orana Dr	17,400	Design works in progress that will be completed in 18/19.
Traffic Study Strategic Network Analysis	174,900	Design works in progress that will be completed in 18/19.
McGettigans / Ewingsdale Road R/about	27,600	Works to be undertaken in 18/19.
Total	3,645,400

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 28 June 2018 via Resolution 18-429, the expenditure items subject of this report were not included in the 2018/2019 Budget Estimates but now need to be. The intent of this report is to seek Council approval to revote the carryovers from the 2017/2018 financial year and to adopt the budget allocation carryovers for inclusion in the 2018/2019 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) 2017/2018 considered by Council at its Ordinary Meeting held on 14 December 2017 (Resolution 17-647).

This report will also be submitted to Council at its Meeting held on 23 August 2018.

Statutory and Policy Compliance Implications

Regulation 211 of the Local Government (General) Regulation 2005 outlines the requirements of Council relating to authorisation of expenditure. Specifically the Regulation 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) 2017/2018.

BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services 4.4

Report No. 4.4 Budget Review 1 April 2018 to 30 June 2018

Directorate: Corporate and Community Services

Report Author: James Brickley, Manager Finance

File No: I2018/1524

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 2017/2018 financial year, reviewed as at 30 June 2018.

The Quarterly Budget Review for the June 2018 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.

The report also provides an indication of the financial position of the Council at 30 June 2018. It should be noted that the figures provided are subject to completion and audit of the Council’s Financial Statements for 2017/2018. Any major variances to the estimated financial position for the 2017/2018 financial year will be included as part of the report adopting the financial statements during October 2018.

RECOMMENDATION:

That the Finance Advisory Committee recommend to Council:

1. That Council authorises the itemised budget variations as shown in Attachment 2 (#E2018/67079) which includes the following results in the 30 June 2018 Quarterly Review of the 2017/2018 Budget:

General Fund - $0 change in Unrestricted Cash Result

a) General Fund - $9,795,300 increase in reserves

b) Water Fund - $1,899,300 increase in reserves.

c) Sewerage Fund - $3,461,600 increase in reserves

Attachments:

1 Budget Variations for General, Water and Sewerage Funds, E2018/67080 , page 50 ⇩

2 Itemised Listing of Budget Variations for General, Water and Sewerage Funds, E2018/67079 , page 72⇩

Report

Council adopted the 2017/2018 budget on 22 June 2017 via Resolution 17-268. It also considered and adopted the budget carryovers from the 2016/2017 financial year, to be incorporated into the 2017/2018 budget at its Ordinary Meeting held on 24 August 2017 via Resolution 17-322. Since that date, Council has reviewed the budget taking into consideration the 2016/2017 Financial Statement results and progress through the 2017/2018 financial year. This report considers the June 2018 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 22 June 2017 plus the adopted carryover budgets from 2016/2017 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 2018.

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 2018 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. Reports to Council concerning Quarterly Budget Reviews normally provide statements in accordance with these guidelines as a separate attachment. Given that there is no statutory obligation for Council to produce a Quarterly Budget Review as at 30 June each financial year, the statements required by the guidelines have not been produced for this specific report only.

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 2017/2018 financial year projected to 30 June 2018.

2017/2018 Budget Review Statement as at 30 June 2018	Original Estimate (Including Carryovers) 1/7/2017	Adjustments to 30 June 2018 including Resolutions*	Proposed 30 June 2018 Review Revotes	Revised Estimate 30/6/2018
Operating Revenue	77,022,500	5,547,700	2,997,600	85,567,800
Operating Expenditure	79,542,600	6,571,300	(1,339,900)	84,774,000
Operating Result – Surplus/Deficit	(2,520,100)	(1,023,600)	4,337,500	793,800
Add: Capital Revenue	27,595,500	(18,949,300)	879,100	9,525,300
Change in Net Assets	25,075,400	(19,972,900)	5,216,600	10,319,100
Add: Non Cash Expenses	12,939,400	0	0	12,939,400
Add: Non-Operating Funds Employed	2,160,000	1,239,000	(93,800)	3,305,200
Subtract: Funds Deployed for Non-Operating Purposes	(64,587,000)	26,544,400	10,033,400	(28,009,200)
Cash Surplus/(Deficit)	(24,412,200)	7,810,500	15,156,200	(1,445,500)
Restricted Funds – Increase / (Decrease)	(24,419,500)	7,817,800	15,156,200	(1,445,500)
Forecast Result for the Year – Surplus/(Deficit) – Unrestricted Cash Result	7,300	(7,300)	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 2018:

Opening Balance – 1 July 2017	$1,145,200
Plus original budget movement and carryovers	$7,300
Council Resolutions July – September Quarter	($50,000)
September Review – increase/(decrease)	($161,900)
Council Resolutions October – December Quarter	($10.000)
December Review – increase/(decrease)	($42,300)
Council Resolutions January – March Quarter	0
March Review – increase/(decrease)	$256,900
Council Resolutions April – June Quarter	0
Recommendations within this Review – increase/(decrease)	0
Forecast Unrestricted Cash Result – Surplus/(Deficit) – 30 June 2018	0
Estimated Unrestricted Cash Result Closing Balance – 30 June 2018	$1,145,200

The General Fund financial position overall has remained at zero as a result of this budget review. The proposed budget changes are detailed in Attachment 1.

Council Resolutions impacting the Budget Result

There were no resolutions of Council during the April to June quarter that affected the budget result.

Budget Adjustments

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

Budget Directorate	Revenue Increase/ (Decrease) $	Expenditure Increase/ (Decrease) $	Budget Result Increase/ (Decrease) $
General Manager	57,100	57,100	0
Corporate & Community Services	1,995,200	1,559,500	435,700
Infrastructure Services	(5,973,400)	(5,789,100)	(184,300)
Sustainable Environment & Economy	361,900	613,300	(251,400)
Total Budget Movements	(3,559,200)	(3,559,200)	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 2017/2018 financial year not completed to be added to the 2018/2019 Budget Estimates. This report also considers the implications of that report.

Specific Cash Position

Upon reconciling Council’s total cash and investment position at 30 June 2018 compared to the reserve movements outlined in this Budget Review, there is an indication that Council will have total unrestricted cash and investments of $1,145,200 – the same level as 2017. Council commenced the 2017/2018 financial year with unrestricted cash of $1,145,200 which was an attainment of one of Council’s short term financial goals. The actual amounts that will be eventually allocated will be contingent upon finalisation of the 2017/2018 financial statements yet to be finalised and subject to external audit and further reporting to Council.

WATER FUND

After completion of the 2016/2017 Financial Statements the Water Fund as at 30 June 2017 has a capital works reserve of $4,953,000 and held $6,692,100 in section 64 developer contributions.

The estimated Water Fund reserve balances as at 30 June 2018, and forecast in this Quarter Budget Review, are derived as follows:

Capital Works Reserve

Opening Reserve Balance at 1 July 2017	$4,953,800
Plus original budget reserve movement	939,000
Less reserve funded carryovers from 2016/2017	(124,800)
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	(40,000)
Resolutions October - December Quarter – increase / (decrease)	0
December Quarterly Review Adjustments – increase / (decrease)	(56,500)
Resolutions January - March Quarter – increase / (decrease)	0
March Quarterly Review Adjustments – increase / (decrease)	11,000
Resolutions April - June Quarter – increase / (decrease)	0
June Quarterly Review Adjustments – increase / (decrease)	1,240,800
Forecast Reserve Movement for 2017/2018 – Increase / (Decrease)	1,969,500
Estimated Reserve Balance at 30 June 2018	$6,923,300

Section 64 Developer Contributions

Opening Reserve Balance at 1 July 2017	$6,692,100
Plus original budget reserve movement	(1,874,000)
Less reserve funded carryovers from 2016/2017	(2,645,300)
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	(70,000)
Resolutions October - December Quarter – increase / (decrease)	0
December Quarterly Review Adjustments – increase / (decrease)	(50,000)
Resolutions January - March Quarter – increase / (decrease)	0
March Quarterly Review Adjustments – increase / (decrease)	1,184,100
Resolutions April - June Quarter – increase / (decrease)	(37,500)
June Quarterly Review Adjustments – increase / (decrease)	658,500
Forecast Reserve Movement for 2017/2018 – Increase / (Decrease)	(2,834,200)
Estimated Reserve Balance at 30 June 2018	$3,857,900

Movements for Water Fund can be seen in Attachment 1 with a proposed estimated increase to reserves (including S64 Contributions) overall of $1,899,300 from this review.

SEWERAGE FUND

After completion of the 2016/2017 Financial Statements the Sewer Fund as at 30 June 2017 has a capital works reserve of $7,372,800 and plant reserve of $827,800. It also held $9,583,600 in section 64 developer contributions.

Capital Works Reserve

Opening Reserve Balance at 1 July 2017	$7,372,800
Plus original budget reserve movement	(2,408,100)
Less reserve funded carryovers from 2016/2017	(102,200)
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	99,000
Resolutions October - December Quarter – increase / (decrease)	(251,000)
December Quarterly Review Adjustments – increase / (decrease)	(524,300)
Resolutions January - March Quarter – increase / (decrease)	0
March Quarterly Review Adjustments – increase / (decrease)	2,647,100
Resolutions April - June Quarter – increase / (decrease)
June Quarterly Review Adjustments – increase / (decrease)	1,853,300
Forecast Reserve Movement for 2017/2018 – Increase / (Decrease)	1,313,800
Estimated Reserve Balance at 30 June 2018	$8,686,600

Plant Reserve

Opening Reserve Balance at 1 July 2017	$827,800
Plus original budget reserve movement	0
Less reserve funded carryovers from 2016/2017	0
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	(12,300)
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)
June Quarterly Review Adjustments – increase / (decrease)	(91,100)
Forecast Reserve Movement for 2017/2018 – Increase / (Decrease)	(103,400)
Estimated Reserve Balance at 30 June 2018	$724,400

Section 64 Developer Contributions

Opening Reserve Balance at 1 July 2017	$9,583,600
Plus original budget reserve movement	(188,800)
Less reserve funded carryovers from 2016/2017	(1,949,600)
Resolutions July - September Quarter – increase / (decrease)	0
September Quarterly Review Adjustments – increase / (decrease)	(101,700)
Resolutions October - December Quarter – increase / (decrease)	0
December Quarterly Review Adjustments – increase / (decrease)	(275,000)
Resolutions January - March Quarter – increase / (decrease)	0
March Quarterly Review Adjustments – increase / (decrease)	283,500
Resolutions April - June Quarter – increase / (decrease)	0
June Quarterly Review Adjustments – increase / (decrease)	1,699,400
Forecast Reserve Movement for 2017/2018 – Increase / (Decrease)	(532,200)
Estimated Reserve Balance at 30 June 2018	$9,051,400

Movements for the Sewerage Fund can be seen in Attachment 1 with a proposed estimated overall increase to reserves (including S64 Contributions) of $3,461,600 from this Budget Review.

Legal Expenses

One of the major financial concerns for Council over previous years has been legal expenses. Not only does this item potentially 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 as at 30 June 2018.

Total Legal Income & Expenditure as at 30 June 2018

Program	2017/2018 Budget ($)	Actual ($)	Percentage To Revised Budget
Income
Legal Expenses Recovered	0	0	0%
Total Income	0	0	0%

Expenditure
General Legal Expenses	301,000	353,124	117.32%
Total Expenditure General Fund	301,000	353,124	117.32%

Note: The above table does not include costs incurred by Council in proceedings after 30 June 2017 or billed after this date. An additional $100,000 was allocated at the December 2017 budget review to the General Legal Expenses budget, funded from the Legal Services Reserve.

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

Legal Reserve

Opening Reserve Balance at 1 July 2017	$514,800
Less:-
Legal Services Officer	(61,400)
General Legal Expenses (December 2017 QBR)	(100,000)
Byron Rail Corridor Park (Railway Square Upgrade) (1)	(22,000)
Conservation Management Strategy (Railway Square Upgrade) (1)	(8,800)
Market/Comm Relocation/Use Das (Railway Square Upgrade) (1)	(500)
Rail Corridor Contamination Assessment (Railway Square Upgrade) (1)	(4,000)
Estimated Reserve Balance at as at 30 June 2018	$318,100

(1) These items were approved by Council as per resolution 18-111.

Byron Railway Precinct Projects

For information, the adopted 2017/2018 Budget Estimates currently provides an allocation of $1,457,500 funded from the Infrastructure Renewal Reserve, TDDI Grant, Visitor Centre contribution and other sources for projects related to the Byron Bay Master Plan – Railway Precinct.

A summary of the current projects with funded budgets associated with the Byron Railway Precinct are outlined in the table below with budgets presented prior to any adjustment that may be proposed in this Quarterly Budget Review:

Job No	Project No	Project	Current Budget 2017/2018 $
4835.187	0	Byron Bay Town Centre Masterplan	239,300
44283.013	1	Byron Street	200,000
44265.001	1	Byron Street	311,400
4835.188	2	Byron St Connection Upgrade	139,000
4835.189	3	Railway Park Upgrade	237,500
4835.190	4	Visitor Centre Refurbishment	130,000
2306.028	5	Countrylink Building Project Plan	35,000
4835.191	0	Visitor Centre Technology Project	45,000
4835.219	18	Byron Rail Corridor Park	57,000
4835.222	9	Conservation Mgmt Strategy	8,800
4835.223	11	Market/Comm Relocation/DAs	500
4835.224	12	Rail Corridor Contamination Assessment	32,100
4835.225	13	Farmers Market Relocation	21,900
		Total	1,457,500

Financial Implications

The 30 June 2018 Quarter Budget Review of the 2017/2018 Budget Estimates forecasts no change to the 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 given the challenges is a good outcome.

It is expected also given the level of reserve funds compared to total cash and investments at 30 June 2018, 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 2017/2018 financial year. Council is yet to finalise its financial statements for the year ended 30 June 2018 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 2018 at its Ordinary Meeting to be held on 18 October 2018 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 16 August 2018.

Statutory and Policy Compliance Implications

In accordance with Regulation 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 still satisfactory for the 2017/2018 financial year, having consideration of the original estimate of income and expenditure at the 30 June 2018 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 2017/2018 financial year.

Venue	Conference Room, Station Street, Mullumbimby
Date	Thursday, 16 August 2018
Time	2.00pm