Cover page Agenda and Min Extraordinary infocouncil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agenda

 

Extraordinary Meeting

 

 Thursday, 9 May 2019

 

held at Council Chambers, Station Street, Mullumbimby

commencing at 5:00pm

 

 

 

 

Public Access relating to items on this Agenda can be made between 9.00am and 10.30am on the day of the Meeting.  Requests for public access should be made to the General Manager or Mayor no later than 12.00 midday on the day prior to the Meeting.

 

 

 

Mark Arnold

General Manager

 


CONFLICT OF INTERESTS

What is a “Conflict of Interests” - A conflict of interests can be of two types:

Pecuniary - an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person or another person with whom the person is associated.

Non-pecuniary – a private or personal interest that a Council official has that does not amount to a pecuniary interest as defined in the Local Government Act (eg. A friendship, membership of an association, society or trade union or involvement or interest in an activity and may include an interest of a financial nature).

Remoteness – a person does not have a pecuniary interest in a matter if the interest is so remote or insignificant that it could not reasonably be regarded as likely to influence any decision the person might make in relation to a matter or if the interest is of a kind specified in Section 448 of the Local Government Act.

Who has a Pecuniary Interest? - a person has a pecuniary interest in a matter if the pecuniary interest is the interest of the person, or another person with whom the person is associated (see below).

Relatives, Partners - a person is taken to have a pecuniary interest in a matter if:

§  The person’s spouse or de facto partner or a relative of the person has a pecuniary interest in the matter, or

§  The person, or a nominee, partners or employer of the person, is a member of a company or other body that has a pecuniary interest in the matter.

N.B. “Relative”, in relation to a person means any of the following:

(a)   the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descends or adopted child of the person or of the person’s spouse;

(b)   the spouse or de facto partners of the person or of a person referred to in paragraph (a)

No Interest in the Matter - however, a person is not taken to have a pecuniary interest in a matter:

§  If the person is unaware of the relevant pecuniary interest of the spouse, de facto partner, relative or company or other body, or

§  Just because the person is a member of, or is employed by, the Council.

§  Just because the person is a member of, or a delegate of the Council to, a company or other body that has a pecuniary interest in the matter provided that the person has no beneficial interest in any shares of the company or body.

Disclosure and participation in meetings

§  A Councillor or a member of a Council Committee who has a pecuniary interest in any matter with which the Council is concerned and who is present at a meeting of the Council or Committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable.

§  The Councillor or member must not be present at, or in sight of, the meeting of the Council or Committee:

(a)   at any time during which the matter is being considered or discussed by the Council or Committee, or

(b)   at any time during which the Council or Committee is voting on any question in relation to  the matter.

No Knowledge - a person does not breach this Clause if the person did not know and could not reasonably be expected to have known that the matter under consideration at the meeting was a matter in which he or she had a pecuniary interest.

Participation in Meetings Despite Pecuniary Interest (S 452 Act)

A Councillor is not prevented from taking part in the consideration or discussion of, or from voting on, any of the matters/questions detailed in Section 452 of the Local Government Act.

Non-pecuniary Interests - Must be disclosed in meetings.

There are a broad range of options available for managing conflicts & the option chosen will depend on an assessment of the circumstances of the matter, the nature of the interest and the significance of the issue being dealt with.  Non-pecuniary conflicts of interests must be dealt with in at least one of the following ways:

§  It may be appropriate that no action be taken where the potential for conflict is minimal.  However, Councillors should consider providing an explanation of why they consider a conflict does not exist.

§  Limit involvement if practical (eg. Participate in discussion but not in decision making or vice-versa).  Care needs to be taken when exercising this option.

§  Remove the source of the conflict (eg. Relinquishing or divesting the personal interest that creates the conflict)

§  Have no involvement by absenting yourself from and not taking part in any debate or voting on the issue as if the provisions in S451 of the Local Government Act apply (particularly if you have a significant non-pecuniary interest)

RECORDING OF VOTING ON PLANNING MATTERS

Clause 375A of the Local Government Act 1993 – Recording of voting on planning matters

(1)   In this section, planning decision means a decision made in the exercise of a function of a council under the Environmental Planning and Assessment Act 1979:

(a)   including a decision relating to a development application, an environmental planning instrument, a development control plan or a development contribution plan under that Act, but

(b)   not including the making of an order under Division 2A of Part 6 of that Act.

(2)   The general manager is required to keep a register containing, for each planning decision made at a meeting of the council or a council committee, the names of the councillors who supported the decision and the names of any councillors who opposed (or are taken to have opposed) the decision.

(3)   For the purpose of maintaining the register, a division is required to be called whenever a motion for a planning decision is put at a meeting of the council or a council committee.

(4)   Each decision recorded in the register is to be described in the register or identified in a manner that enables the description to be obtained from another publicly available document, and is to include the information required by the regulations.

(5)   This section extends to a meeting that is closed to the public.

 


BYRON SHIRE COUNCIL

Extraordinary Meeting

 

 

BUSINESS OF Extraordinary Meeting

 

1.    Public Access

2.    Apologies

3.    Declarations of Interest – Pecuniary and Non-Pecuniary

4.    Staff Reports

Corporate and Community Services

4.1       Draft 2019-2020 Operational Plan and Budget for public exhibition................................. 4     

 

 

 

 

Councillors are encouraged to ask questions regarding any item on the business paper to the appropriate Executive Manager prior to the meeting. Any suggested amendments to the recommendations should be provided to the Administration section prior to the meeting to allow the changes to be typed and presented on the overhead projector at the meeting.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                            4.1

 

 

Staff Reports - Corporate and Community Services

 

Report No. 4.1             Draft 2019-2020 Operational Plan and Budget for public exhibition

Directorate:                 Corporate and Community Services

Report Author:           Anna Vinfield, Manager Corporate Services

Heather Sills, Corporate Governance Officer

James Brickley, Manager Finance

File No:                        I2019/678

                                       

 

 

Summary:

 

Council’s Operational Plan articulates the key activities to be delivered in a financial year based on the actions and strategic goals in ‘Our Byron, Our Future’ – Council’s 10-year Community Strategic Plan and 4-year Delivery Program. Council is in its third year of the Delivery Program.

 

Council’s Statement of Revenue Policy includes Budget Estimates, Rates and Charges, Borrowings, and Fees and Charges.

 

The preparation of these documents is regulated under the Integrated Planning and Reporting Framework requirements legislated by the Local Government Act 1993 (Sections 402 to 406).

 

This report recommends placing the Draft 2019/20 Operational Plan and Statement of Revenue Policy, subject to any amendments, on public exhibition for 28 days.

 

  

 

RECOMMENDATION:

That Council:

 

1.       Endorses the draft Operational Plan 2019/20 (Attachment 1, E2019/31932) for public exhibition for a period of 28 days

2.       Endorses the Draft 2019/20 Statement of Revenue Policy comprising detailed Budget           Estimates (Attachment 2, E2019/31865), Rates and Charges and Borrowings           (Attachment 3, E2019/31857) and Fees and Charges (Attachment 4, E2019/31385) for a           period of 28 days

 

 

Attachments:

 

1        Draft 2019-20 Operational Plan, E2019/31932 , page 11  

2        Draft 2019-20 Budget Estimates (Detailed), E2019/31865 , page 110  

3        Draft 2019-20 Revenue Policy, E2019/31857 , page 170  

4        Draft 2019-20 Fees and Charges, E2019/31385 , page 194  

5        Draft 2019-20 Special Rate Variation Schedule of Works, E2019/31853 , page 308  

 

 


 

REPORT

 

The Community Strategic Plan, the Delivery Program and the Operational Plan form part of the Integrated Planning and Reporting Framework which is a requirement under the Local Government Act.

 

The 4-year Delivery Program turns the strategic goals found in the Community Strategic Plan into actions. The annual Operational Plan spells out the detail of the Delivery Program, identifying the individual projects and activities that will be undertaken in a specific year to achieve the commitments made in the Delivery Program. The Operational Plan must include the Council’s annual budget, along with Council’s Statement of Revenue Policy, which includes the proposed rates, fees and charges for that financial year. 

 

Council undertook a significant review of its Delivery Program in 2018 following the development of a new Community Strategic Plan and recommendations from the Infrastructure Community Solutions Panel. It has not been reviewed this year.

 

Draft 2019-2020 Operational Plan

 

The Operational Plan actions detail the activities and projects Council will undertake. It is grouped under our five Community Strategic Plan themes, which are:

 

·    We have infrastructure, transport and services which meet our expectations

·    We cultivate and celebrate our diverse cultures, lifestyle and sense of community

·    We protect and enhance our natural environment

·    We manage growth and change responsibly

·    We have community led decision making which is open and inclusive

 

Within each theme, reading across, the Operational Plan is structured by Community Strategic Plan objective and strategy, Delivery Plan action, Operational Plan activity, financial implications, responsibility, measure and due date. Links to Community Solutions Panel (infrastructure) recommendations and Disability Inclusion Action Plan requirements are also referenced.

 

The draft Operational Plan is included at Attachment 1.

 

Draft 2019/20 Budget Estimates (Statement of Revenue Policy)

 

The Draft 2019/20 Budget Estimates are based on the 2018/19 budget reviewed at 31 December 2018 and the proposed 31 March 2019 Quarter Budget Review with various changes to reflect the updated cost of service delivery across all programs developed from the input received from each Council Directorate.

 

The Draft 2019/20 Budget Result on a Consolidated (All Funds) basis forecasts a deficit budget result as outlined below at Table 1.

 

Table 1 – Forecast Budget Result 2019/20 Consolidated (All Funds)

 

Item

Amount $

Operating Result

 

Operating Revenue

84,234,700

Less: Operating Expenditure

87,523,600

Operating Result – Surplus/(Deficit)

(3,288,900)

 

 

Funding  Result

 

 

 

Operating Result – Surplus/ (Deficit)

(3,288,900)

Add: Non cash expenses – Depreciation

14,657,200

Add: Capital Grants and Contributions

27,593,200

Add: Loan Funds Used

1,844,000

Add: Asset Sales

0

Less: Capital Works

(49,303,300)

Less: Loan Principal Repayments

(2,906,900)

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

(11,404,700)

Reserves Movement – Increase/(Decrease)

(11,259,500)

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

(145,200)

 

The detailed Draft 2019/20 Budget Estimates are prepared with the third year of the Special Rate Variation (SRV) included as detailed at Attachment 2. The amount of SRV revenue available for 2019/20 is $3.475million. This, coupled with other funding, will provide capital and maintenance works consistent with the SRV approval of $6.705million. Specific details of the SRV funded program can be found at Attachment 5.

 

Table 1 indicates a forecasted budget deficit result of $145,200 and this relates to the General Fund. The forecast General Fund Unrestricted Cash Balance position based on the draft budget included at Table 1 is outlined in Table 2 below:

 

Table 2 – Forecast General Fund Unrestricted Cash Balance

 

Item

$

Forecast unrestricted cash balance to 30 June 2019 at 31 March 2019 Budget Review (proposed)

1,145,200

Add: Estimated initial draft 2019/20 budget result

(145,200)

Forecast unrestricted cash balance at 30 June 2012

1,000,000

 

In addition to Table 1 above, budgeted financial statements incorporating a Operating Statement and Cash Flow Statement have been produced. These financial statements, replicating the format of Council’s Annual Financial Statements, are included in Attachment 1 as part of the Operational Plan, along with a one page summary of all Council budget program outcomes and the estimated balance of Council reserves as at 30 June 2020.

 

To arrive at the Draft Budget Results outlined in Table 1 for the 2019/20 financial year, Council’s revenue and operational expenses are expected to be derived from the following sources and allocated respectively as outlined in the graphs below:

 

 

 

 

 

In addition to the operational aspects of the proposed Draft 2019/20 Budget Estimates, Council is proposing a capital works program of $49.303million. By Fund, the projected capital works are:

 

·    General Fund $38.699million

·    Water Fund $3.063million

·    Sewerage Fund $7.541million

 

Specific capital works projects have been detailed in Attachment 2. As in previous years, the General Fund is presented in a different format, to improve the disclosure of funding sources for specific projects including:

 

·    Developer contribution funding to describe the specific part of the Developer contribution plan and catchment that is providing the funding for a project.

·    Where reserve funds are funding a project, identification of the reserve being utilised.

·    Separation of funding provided by Special Rate Variations (SRVs) including previously granted SRVs prior to 2008/2009 and the SRV from 2017/2018, for which Council has reporting obligations for 10 years.

 

Of the $38.699million for capital works related to the General Fund, $32.110million is allocated towards Roads and Drainage projects including $17.500million allocated to the Byron Bay Bypass.

 

The Draft 2019/20 Budget Estimates also propose new loan borrowings of $1.844million to fund bridge and culvert replacement program ($1,644,000) and the South Golden Beach Flood Pump ($200,000). These borrowings are in addition to the 2018/2019 financial year borrowings of $7.669 million.

 

Draft General Land Rates and Charges (Statement of Revenue Policy)

 

The Draft 2019/20 Revenue Policy includes the proposed rating structure, consistent with the structure revised by Council for the 2017-2018 financial year. This is outlined in Attachment 3. The rating structure incorporates the third year of the approved 2017/2018 Special Rate Variation (SRV) with the overall rate yield for 2019/20 increasing by 7.50% (including rate pegging of 2.70% set by the Independent Pricing and Regulatory Tribunal (IPART) for the 2019/20 financial year).

 

Given Council has an SRV approval for the financial years, 2017-2018 to 2020-2021, the Independent Pricing and Regulatory Tribunal (IPART) has set the rating structure for the next two financial years as the minimum rates to apply have been determined by Order.

 

In respect of other charges, the Draft 2019/20 Revenue Policy includes the following:

 

·    Waste Charges – increases of 11.50% to apply due to:

 

Queensland waste levy implementation for depositing waste to landfill sites.

Increased recyclables cost resulting from ongoing changes China has made to recyclables acceptance (contamination levels and product acceptance pricing).

 

·    Water and Sewerage charges increase in line with the rate pegging limit of 2.70%.  Water consumption charges are proposed to change from a two step tariff structure to a single tariff structure in 2019/2020 for residential consumers, as is the case already for non-residential consumers.  It is also proposed to phase in the removal of the different consumption charges between residential and non-residential consumers over the next two financial years so the consumption charge becomes the same for all consumers.

 

·    The stormwater charge has not increased. It is a regulated charge that has not changed over the last twelve years.

 

Draft Fees and Charges (Statement of Revenue Policy)

 

The Draft 2019/20 Fees and Charges have been reviewed by the respective program managers and included at Attachment 4.  Where possible, fees have been altered/increased to reflect the following specific changes:

 

·    Increases in the Consumer Price Index (CPI)/Indexation - assumed at 1.90%.

 

·    Review of fees and charges including benchmarking/cost of service provision and where possible, introduction of new fees to assist Council to generate additional/enhanced revenue.

 

STRATEGIC CONSIDERATIONS

 

Community Strategic Plan and Operational Plan

CSP Objective

CSP Strategy

DP Action

OP Activity

Community Objective 5:  We have community led decision making which is open and inclusive

5.2

Create a culture of trust with the community by being open, genuine and transparent

5.2.1

Provide timely, accessible and accurate information to the community

5.2.1.1

Review Operational Plan annually

Community Objective 5:  We have community led decision making which is open and inclusive

5.5

Manage Council’s finances sustainably

5.5.2

Ensure the financial integrity and sustainability of Council through effective planning and reporting systems (SP)

5.5.2.2

Complete annual statutory financial reports

 

Legal/Statutory/Policy Considerations

 

Section 405 of the Local Government Act outlines the Operational Plan requirements including public exhibition and timeframes.

 

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

 

Financial Considerations

 

The Operational Plan includes the annual budget required to fund the projects and services delivered as part of the Plan.

 

Consultation and Engagement

 

The Draft 2019/20 Operational Plan and Budget have been prepared based on the strategic priorities in the Community Strategic Plan and insights from the 2018 Infrastructure Community Solutions Panel and the 2018 Community Satisfaction Survey.

 

Initial community feedback was obtained through three community conversations held in early April as well as an online survey.  The presentation included discussion on:

-     how the budget and operational plan are developed

-     outcomes and progress on investment of SRV and pay-parking funds

-     projects being considered

-     input on priorities from attendees.

 

The outcomes from these sessions are available online https://www.yoursaybyronshire.com.au/our-plan and have been incorporated (where possible) in the Operational Plan. 

 

The Draft 2019/20 Operational Plan and Budget will be subject to 28 days’ public exhibition.  Community feedback will be sought through a survey www.yoursaybyronshire.com.au, community conversation sessions, stakeholder information sessions and an information booth in Mullumbimby Offices front foyer.  Public notices and media releases will also be distributed.

 


BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 4.1 - Attachment 1

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 4.1 - Attachment 2

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 4.1 - Attachment 3

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                 4.1 - Attachment 4

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BYRON SHIRE COUNCIL

Staff Reports - Corporate and Community Services                                                           4.1 - Attachment 5

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