ITEM 1 - APPLICATIONS FOR LEAVE OF ABSENCE
REPORT IN BRIEF
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Reason For Report |
To allow tendering of apologies for Councillors not present |
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Policy Implications |
Nil |
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Budget Implications |
Nil |
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Annexures |
Nil |
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File Number |
\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS LEAVE OF ABSENCE - 312746 |
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THAT any apologies tendered be accepted and the necessary leave of absence be granted.
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GENERAL MANAGER’S REPORT
A call for apologies is to be made.
ITEM 2 - DECLARATIONS OF INTEREST
REPORT IN BRIEF
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Reason For Report |
To allow an opportunity for Councillors to declare an interest in any items to be determined at this meeting. |
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Policy Implications |
Nil |
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Budget Implications |
Nil |
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Annexures |
Nil |
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File Number |
\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS DECLARATION OF INTEREST - 312747 |
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THAT the Declarations of Interest be noted.
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General Manager's REPORT
A call for Declarations of Interest
ITEM 3 - DECLARATIONS FOR POLITICAL DONATIONS
REPORT IN BRIEF
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Reason For Report |
To allow an opportunity for Councillors to declare any Political Donations received |
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Policy Implications |
Nil |
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Budget Implications |
Nil |
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Annexures |
Nil |
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File Number |
\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS DECLARATION OF POLITICAL DONATIONS - 312748 |
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THAT any Political Donations be noted.
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General Manager's REPORT
A call for declarations of any Political Donations.
ITEM 4 - 2012/2013 INTEGRATED PLANNING & REPORTING
REPORT IN BRIEF
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THAT Council:-
1. Adopt the Draft Community Strategic Plan – Cabonne 2025 2. Adopt the Draft Delivery Program 2012/13 to 2015/16 3. Adopt the Draft Operational Plan 2012-2013 - Part 1 - The Activities - Part 2 - Financials including Fees and Charges
4. Adopt the Draft Resource Plans - HR Workforce Plan - Asset Management Plan o Asset Management Policy o Asset Management Strategy o Water Supply Asset Management Plan o Building Asset Management Plan o Recreation Asset Management Plan o Sewer Asset Management Plan - Long Term Financial Plan
5. Publicly exhibit the Draft Community Strategic Plan – Cabonne 2025, Draft Delivery Program 2012/13 to 2015/16, Draft Operational Plan 2012-2013 and Draft Resource Plans at each Council office, Branch Library and other locations throughout the Shire for a period of 28 days, and that a copy of the Plan be made available on a reduced cost basis of $15.00 per copy, with sections of the plans and program being photocopied at a reduced rate of 15 cents per page.
6. That an interest rate of the maximum allowable percentage allowed the Division of Local Government for the 2012/13 period is charged on arrears of Rates and Changes.
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General Manager's REPORT
2012/2013 will see the implementation of the State Government’s Integrated Planning and Reporting (IP&R) requirements, incorporating a number of documents:
· Draft Community Strategic Plan – Cabonne 2025
· Draft Delivery Program 2012/13 to 2015/16
· Draft Operational Plan 2012-2013
- Part 1 - The Activities
- Part 2 - Financials including Fees and Charges
· Draft Resource Plans
- HR Workforce Plan
- Asset Management Plan
o Asset Management Policy
o Asset Management Strategy
o Water Supply Asset Management Plan
o Building Asset Management Plan
o Recreation Asset Management Plan
o Sewer Asset Management Plan
- Long Term Financial Plan
· Draft Consolidated Income Statement (attached)
· Draft Net Expenditure by Category (attached)
I am pleased to present this range of documents for Council’s consideration, the majority of which were handed to Councillors at the April Council meeting.
The General Manager’s report is also accompanied by reports from various Council officers highlighting issues in their particular areas of responsibility.
The IP&R represents the most comprehensive document ever prepared by Council. The document incorporates the outcomes from the extensive community consultation which has taken place with Council’s Community Draft Strategic Plan (Cabonne Community Plan 2025), the detailed workshop held at Cargo and follow up sessions with community representatives, Councillors and staff. Council should note that it is a strategic document and cannot cover in detail Council’s operations. These matters are covered through other sources such as the Delivery Program, Operational Plan and Resourcing Strategy.
It will be important that Council, as part of its communication process, provides information of its direction and priorities to its various communities and stakeholders, naturally focussing on the residents of the Cabonne area, but also involving staff, our WBC Strategic Alliance partners, other surrounding Councils, as well as State and Federal Government agencies.
The majority of documents under IP&R were distributed to Council at the April Council meeting and these need to be read in conjunction with the documents included with this report.
The preparation of the IP&R, as mentioned, has been extensive. This renewed focus and commitment to IP&R has meant that a wide range of sources have been used in compiling this year’s report. These sources and information include:
1. Decisions and resolutions made by Council during the year.
2. Input from the extensive community survey conducted in this term of Council, which is broken down into 28 different localities.
3. The Cargo Community Workshop, which had representatives from all parts of the Shire, held in August 2011.
4. Follow up workshops and consultation in relation to the Cabonne Community Plan 2025.
5. Council policies.
6. Councillor workshops.
7. Consultant’s reports.
8. Community Consultation Meetings.
9. Future Direction Forum.
10. 2011/2012 Management Plan.
11. Comments from Councillors
12. Input from staff.
13. Important legal decisions.
14. Legislative changes imposed by State and Federal Government.
15. Directions by the Minister.
16. Consideration of Destination 2036 outcomes.
17. Division of Local Government and other government agencies.
18. Economic considerations emanating from such things as including climate change, carbon tax, water and ongoing effect of the global financial crisis.
19. NSW State Plan 2021.
From the above, Council can see that there has been a very extensive range of input. This comprehensive number of sources and data collection requires the setting of priorities, evaluation of service levels, reconsideration and adoption of strategies, compromises and further decision making. This is a complicated and time consuming process, it can certainly be challenging and frustrating, but is also very rewarding when a balance is achieved. This IP&R seeks to do this and is an essential consideration and requirement of a progressive and sustainable council, particularly in light of the challenges facing local government and the existing economic climate at state, national and international level.
General Manager’s Specific comments in relation to the 2012/2013 IP&R documents
The challenges, opportunities and priorities have been brought together in the IP&R. Whilst this document is strategic in nature, there are a number of issues that the General Manager would wish to comment on and bring to Council’s attention due to their impact on Council or costs to ratepayers. The General Manager’s comments should be read in conjunction with the reports and comments provided by the relevant Directors of issues of importance to their departments.
a) Integrated Planning & Reporting (IP&R) format itself
IP&R, as mentioned previously, has been the driver for much of the preparatory work for the 2012/2013 year. This is a new requirement of the State Government which Council has been working steadily to over the past 2-3 years to implement. The IP&R requires a new format and presentation to Council and Councillors will need to allocate time to review this format. Because of the workshops and reports Council has considered on IP&R, this, whilst a new format, should not be a burdensome task. It is a change however and Councillors and staff will need to adapt to this change.
b) Destination 2036
Council has considered a number of reports and held various workshops in relation to Destination 2036. Council has attended every conference convened by the State Government and has been proactive in its consideration and acceptance of the Destination 2036 document.
The proactive stance taken by Council means that Council is ready to address the issues and the actions from the report. Council’s participation in the WBC Alliance and CENTROC activities, as well as financial sustainability and issues such as asset renewal provisions, trainee, apprenticeships and professional development programs, etc, do confirm Council’s preparedness to reflect on the challenges and changes of local government and adopt positive strategies.
Council would be aware that the Minister has recently appointed a 3 member review panel to develop options to improve and strengthen the effectiveness of local government in NSW. This review will drive the key strategic directions identified in the Destination 2036 initiative and support the broader directives of the State as outlined in the “NSW 2021: A Plan to Make NSW No 1” (the State Plan). This panel is chaired by Prof Graham Sampson and is expected to make a report to the Minister in mid 2013.
c) Allowable Rate Increase
The NSW State Government has set the allowable rate increase for 2012/2103 at 3.6%, which incorporates a provision for the Federal Government’s Carbon Tax. Council has already expressed concern about the real impact of Carbon Tax on its ratepayers and has successfully carried a Motion at the E Division Conference which will now be presented to the Shires Association Annual Conference in Sydney, as well as submitting a Motion to the National General Assembly of Local Government which will be held in Canberra in mid June.
The information supplied by IPART only provides for a 0.4% rate pegging allowance for Carbon Tax. When coupled with other increases such as electricity, insurance, cost shifting, state government levies and contributions, and media reports about hidden costs, it is not surprising that the figure has been questioned.
d) Recurrent, Capital, Discretionary & Non-discretionary Financial Implications Matrix
Council has a Financial Implications Matrix which has been developed and used for a number of years. This identifies recurrent, capital, discretionary and non-discretionary expenditure implications and, when considered with the source of funds, has proven to be an excellent tool to enable Council to consider financial decisions and the implications of them. This simple tool has also been shared with other Councils. The Financial Implications Matrix can be represented quite simply as follows:
Financial Implications Matrix
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Recurrent Expenditure
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Capital |
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Discretionary Expenditure |
Non Discretionary
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By identifying the expenditure item and plotting it on two of the quadrants it is easy to identify the impact of the financial decision on Council’s budget and ongoing sustainability of the expenditure when linked to the source of funds, viz such things as revenue, Section 94, reserves, provisions, grants, contributions, etc. This clearly indicates the impact of the project’s sustainability and helps Council determine priorities.
The matrix has been used extensively by staff in finalising the preparation of the 2012/2013 budget. It is a simple but effective tool that can be applied right across the organisation.
e) Transport and roads expenditure
Council’s number one priority has been expenditure of roads and transport facilities. It is very pleasing that the current budget continues this emphasis with a record $15.9M allocated in the areas of roads, bridges, kerb and gutter, etc.
It is worthy to note that there has been a significant increase in local roads timber bridge replacement funds for the coming year, which will see the near completion of the original timber bridge replacement program. This program which commenced over 20 years ago had approximately 59 timber bridges or structures to be replaced. With the expenditure in the budget, this is expected to leave only 3 bridges from the original list. This is truly a significant achievement as Council has been able to construct these bridges, some at a cost approaching $1M, without the need for loan borrowings or external financing.
Council is aware that funds for roads and transport come from a wide range of areas, such as Council funded works, RTA grants, Roads to Recovery, black spot funding, etc. Council has had ongoing concerns about the adequacy and the reduction in government funds for roads, particularly in relation to construction. This matter has been raised by Council in recent motions to the Shires Association Annual Conference and the National General Assembly of Local Government, specifically in relation to local roads, which service our ratepayers across our diverse Shire.
Through a sound plant replacement and upgrade strategy, Council now has a plant fleet which is amongst the very best in NSW. This plant fleet has been augmented in recent years by the acquisition of special equipment such as the Road Reclaimer and Spreader which has seen increased efficiencies in our road building and opportunities to generate revenue from wet hire to other Councils and bodies.
The issue of road construction and maintenance is an ongoing one and it needs to be acknowledged that it is impossible to satisfy all community expectations, however Council must continue to give emphasis to these areas.
f) Cost Control & Monitoring
The annual financial performance of Council and Council’s ongoing sustainability relies on effective cost control and budget monitoring. Council does this through such things as quarterly budget reviews, annual financial statements, auditor’s presentation and committee operations. Staff have an ongoing responsibility to ensure that Council has allocated funds for the works to be undertaken, expenditure is within budget and costs are monitored.
The preparation and adoption of the budget is only part of the process and this needs to be recognised by all parties.
g) Waste Management
Council has been giving increasing focus to waste management during its term and detailed investigations and operating procedures for existing landfills have either been developed, or are in the process of being developed. This will ensure adequate land for waste disposal and recycling in the foreseeable future as part of Council’s Waste Management Strategy.
Funds have been put aside to assist with the development of landfills and recycling centres, however pending the final outcome of investigations, there may be a need for additional loan funds. Based on current projections these loan funds can be accommodated within Council’s Waste Management account. The impact of federal and state regulations on waste management however, will need to be closely watched. At the current time because of the relatively small size of Council’s landfills, there does not appear to be implications from the Carbon Tax. There are, however, likely to be environmental, social, operational and financial implications which will need to be addressed in the future as Waste Management practices are reviewed.
In the coming year Council will examine the opportunity with neighbouring Councils to enter into a pay for service basis for residents within close proximity of other local government areas. As a founding and active member of Netwaste, Council has reaped many benefits by drawing on the expertise and resources that are available. These benefits are not only financial, they also have significant environmental outcomes for all stakeholders.
h) Local Environmental Plan (LEP)
The long awaited exhibition of Council’s draft LEP is expected to commence shortly. There has been a significant amount of effort and resources going into the Draft LEP. Council has conducted a number of its own workshops, as well as community workshops and the public exhibition phase is sure to provide other issues for Council to consider.
It will be imperative that Council continues with the timetable that it has set itself for the exhibition and adoption of the Draft LEP. Should Council not abide by its timetable, the LEP process will be significantly delayed with the new Council to be elected in September. The LEP has been one of Council’s major priorities and efforts must continue now that the finishing line is fast approaching.
i) Asset Management
Council has had an ongoing emphasis on asset management and with completion of new asset management plans in relation to roads, water, sewer and other areas in recent years as part of the IP&R approach, should be well placed to address these issues in the future. Council’s Building & Infrastructure renewal ratio currently stands at a positive 118%
The collaborative arrangements through our WBC Strategic Alliance have been instrumental in all member Councils moving on with the asset management plans and with considerable savings through the employment of consultants and the sharing of information, ideas and templates. The key to the future will be achieving the right balance between the provision of day-to-day services and the renewal and maintenance of assets. Councils must give serious consideration to the costs of the construction of new assets, as they have not only the upfront costs, but also the ongoing costs of maintenance and renewal. The creation of Council’s capital works and asset renewal reserves a number of years ago, should assist Council in the asset renewal area. Examples of Council’s sound strategy in this area include Council’s timber bridge replacement program, pool replacement program, reseal and resheeting programs, water & sewer schemes, etc.
j) Council’s Trainee, Apprenticeship and Professional Development Program
Council’s successful Trainee, Apprenticeship and Professional Development Program, which received renewed focus and funding as part of the WBC initiative in 2004, has been showing good results in recent years with a number of important positions within Council’s organisation now filled by original trainees and apprentices. A considerable number of other staff have also progressed to supervisor or management positions.
Council’s strategy of “growing our own” needs to continue if Council is to provide the services required by our ratepayers and also address the skills shortage that currently exists across Australia and more particularly in the local government skills area.
k) WBC Strategic Alliance (WBC)
Established in 2003 with Council one of the initiators and founders, the WBC has certainly provided both savings and benefits to Council which now exceed $4M across the four Council areas. Recent initiatives of the WBC such as the IT tender, IP&R, Community Strategic Planning process, asset management & strategic planning, demonstrate the importance of the WBC, which is now an integral part of Council’s operations.
The WBC has been acknowledged across Australia as one of the leading models for local government reform, particularly in the areas of cooperation and collaborative arrangements. This is a key area as it is one of the outcomes from the Destination 2036 conference. The WBC, like all organisations however, must continue to develop, innovate and improve its operations. It is pleasing that the WBC Board is examining its governance structure, operations and MOU. With the recently completed Shared Services project in conjunction with the Australian Centre for Excellence in Local Government, there are some exciting times ahead for the Alliance and its member councils.
l) Urban Services & Utilities Section
Following an external review and a number of workshops by Council, a decision was made to create an Urban Services & Utilities Section within Council’s Engineering & Technical Services Department. The Manager’s position for this section has been successfully filled with Dr Jonathan Foong recently taking up duties. The Urban Services, Village Improvements and Water & Sewer are areas that have raised issues for both Council and staff and it is hoped that with this position being filled and resources being allocated, that progress can be made on a number of projects in relation to village improvements, town beautification, water and sewer construction projects.
The Four Town Sewerage Scheme, due to both external and internal factors, has taken longer than Council anticipated. Recent concern expressed by residents of Cumnock and Yeoval has been understandable, however actions are now well underway and the Section 60 approval by the Minister is expected shortly. Subject to this, tenders can be called and it is hoped the successful tenderer will be on the ground and works underway by the end of the 2012 calendar year.
Council’s decision to not make pre-construction rates for Cumnock & Yeoval for 2012/2013 is a legitimate and pragmatic one and acknowledges the delays that have been incurred.
It is worthy to note that funds amounting to $500,000 provided by Council in 2012/2013 for the investigation for potable water for both Cumnock & Yeoval have been retained in reserve to meet the expenses of the preliminary survey investigation and design. Council and the community will need to engage in a strong lobby campaign with the State Government to ensure that grant funds can be obtained to advance these works.
Water and sewer charges have been increased by 3.6% which is in accordance with the State Government’s allowable increase for general purpose rates and charges. A word of caution needs to be made here, as the impacts of the federal government’s Carbon Tax (particularly on electricity) as well as the uncertainty on water sales, may impact on these funds in the future. This is particularly so when a large proportion of the maintenance and operating expenses for water funds are through filtration and pumping stations which have high energy demands. This matter will need to be monitored on an ongoing basis at each budget review.
m) Economic Development & Tourism
The current term of Council has given a particular focus to Economic Development & Tourism and the additional funds provided in 2011/2012 have been also provided in the 2012/2013 budget to enable this focus to be continued. This also includes funds to the amount of $142,000 under Council’s Business Assistance Program.
It is expected that the review of Council’s Economic Development Strategy and the new Promotion & Tourism Strategy will be completed by July this year. This will provide particular benefit in achieving some of the outcomes that Council is seeking, viz growing and sustaining villages, supporting industry, employment opportunities and lifestyle benefits.
The recent appointment to the Community & Business Development Officer’s position, will also provide a springboard to advance a number of Council’s initiatives, particularly in the area of capacity building and grant funding for community groups.
n) Financial Sustainability
Cabonne Council over many years has given emphasis to its ongoing financial sustainability. This emphasis, backed up by actions within the budget and financial management, has sustained Council in the past and will definitely sustain Council in the future. The Local Government Review Panel will be paying particular attention to the sustainability of Councils, and Cabonne is fortunate that due to sound decisions by current and previous Councils, that it is in a solid financial position, a point that was emphasised by Council’s Auditor in his last audit presentation to Council. Council must continue to be vigilant in this area by:
i. Evaluating services and service levels.
ii. Looking at the impact of Council’s decision on its ongoing sustainability;
iii. Adhering to sound long term financial planning principles.
iv. Identifying the source of funds for unallocated or unapproved items.
v. Strict budget control ensuring that Council staff stay within budget allocations.
vi. Continually examine ways to increase effectiveness and efficiency by reviewing expenditure items.
vii. Investigating and exploring new sources of revenue.
viii. Critically examining its current fees & charges structures to balance out both user pays and public good.
ix. Continue to work in a collaborative manner with our WBC partners as well as CENTROC and other Councils.
o) New Financial Reporting Requirements
Council has been advised and has received reports in the new financial reporting format as dictated by the changes to the Australian Accounting Standards. The new reporting format provides a range of information which, understandably, is taking some time for Councillors to adjust to.
Some of the detail that was previously provided is no longer provided, however reference should be made to the Senior Accounting Officer’s report which has picked up major items, additions or matters required to be brought to Council’s attention.
The financial budget presented to Council provides for a balanced budget for 2012/2013. The reporting format however, requires operating results, capital movements, capital purchases and income to be included and this can sometimes lead to confusion about what the actual result is, particularly in relation to the areas of capital movements, grant funding and income recognition.
Should Councillors have any specific enquiries in this area they should feel free to contact Council’s Director of Finance & Corporate Services, who can provide the necessary information.
p) New Land Valuations
Council is aware that new land valuations will be used for 2012/2013 rating. The valuations have a base date of 30 July 2011.
Council has carried out an extensive awareness and media campaign in print, radio and television media, however there are likely to be concerns expressed by ratepayers once rate notices have been issued, as this is often the first time that ratepayers look at the impact of the changes in their valuations.
The issue of new valuations always turns up inconsistencies and ratepayers who identify these inconsistencies should continue to take the matter up with the Valuer-General’s office. Council has fielded many enquiries from ratepayers in this regard and has provided assistance where possible and Council staff will continue to provide advice for relevant referrals.
q) Future Loan Borrowings
Council has previously been advised that future loan borrowings will be in the areas of water, sewer and waste management. Based on current indications, it is likely that loan borrowings will be able to be funded within existing operations without the need for extensive rate increases as had occurred with other local government authorities. The final borrowings however, will be dependent upon the costs of the capital works, the loan period and prevailing interest rates at the time, but this is not raising concerns for staff based on current projects.
r) Changes to Information Supplied to Council
IP&R, Resourcing Strategies, Delivery Programs and Operational Plans are, by their nature, dynamic. It is not unusual for new information to be received from the date of printing of the Council reports to the actual meeting date. Should such information be received, it will be updated at the commencement of the Extraordinary Meeting and its implications will be clearly communicated to Council.
Staff make every endeavour to provide Council with the most up-to-date information, however there are sometimes circumstances and information received which is beyond Council’s control.
Conclusion
September 2012 will see the end of the current term of Council and Council can look back with a great deal of satisfaction and pride on its achievements.
This Council set a number of priorities and objectives through such things as Future Directions Forums, subsequent workshops and reports in areas as broad as financial sustainability, democratic representation, communication, customer service, roads, village improvements, water, sewer, economic and community development, tourism, Local Environmental Plan, waste management, WBC Strategic Alliance and local government reform.
Councillors have certainly put in both individual and collective efforts in addressing a myriad of issues. It has been the busiest term of Council on record.
Council can be justifiably pleased with its progress and achievements, which include, in no particular order:
· Record roads expenditure.
· Community Strategic Plan – Cabonne 2025.
· Progress with 4 Town Sewerage Scheme.
· A vast range of community projects.
· IP&R.
· Appointment of full time Communications & Media Officer.
· Appointment of Community Business Development Officer.
· Establishment of Business Development Assistance Fund.
· Increase funding for areas such as cemeteries and town maintenance.
· Ongoing development of the WBC Strategic Alliance, including national award winning recognition.
· Continuing commitment to financial sustainability.
· An extensive array of Asset Management Plans.
· New IT system.
· Exhibition of Local Environment Plan (LEP) – with adoption in sight.
· Waste Management strategy and upgrade plan.
· Adoption of climate change and sustainability plans.
· External Reviews of Engineering and Environmental Services Departments.
· Expansion of Event Assistance Program.
· Apprenticeship, Traineeship and Professional Development Program.
· Near finalisation of Timber Bridge Replacement Program.
· Customer Services software and reporting.
· Plan replacement and upgrade program.
· Expanded Community Services.
· Continued development of CENTROC.
· The construction of the Waluwin Centre and resulting expansion of health and allied services.
The IP&R document is commended to Council. It seeks to provide the important “balance” needs, wants priorities and opportunities.
With a new Council and a new General Manager, Council is well placed to address the issues that local government will be facing in the future. It will, however, require a strategic approach, action plans and commitment to achieve its goals, coupled with a strong sense of teamwork.
DIRECTOR OF FINANCE AND CORPORATE SERVICES’ REPORT
Under Section 402,404 and 405 of the Local Government Act, it is necessary for Council to give public notice of its Draft Community Strategic Plan, Draft Delivery Program and Draft Operational Plan after it has been adopted and that the Plans and Program be placed on Public Exhibition for a period of not less than 28 days for public comment.
It is proposed that the Draft Plan be on exhibition at the following location:
§ Council’s Offices in Molong, Cudal and Canowindra
§ Post Offices in Eugowra, Cumnock and Yeoval
§ General Store in Cargo
§ Business Enterprise Centre, Orange
§ Each of the Libraries in Canowindra, Manildra and Molong
§ Council’s website
The Librarians will have two copies of the Plans and Program with one being available for overnight loan.
The Draft Plan will be placed on Public Exhibition from Tuesday 8th May 2012 inviting public submissions. These submissions will close at 5.00pm on Tuesday 5th June, 2012.
Any alterations made as a result of submissions will be included in the Draft Plans and Program, which will then be presented to Council at its June meeting for final adoption.
DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES REPORT
Engineering and Technical Services - Budget Overview
The Cabonne 2025 Community Strategic Plan recognises the importance maintaining and renewing public infrastructure has in meeting the needs of the Cabonne community.
The Cabonne Draft Delivery Programme 2012/13 to 2015/16 and Operational Plan for 2012/13 describes the resources, financial and operational needed to deliver the services prioritised in the 2025 CSP. The four year programme the and 2012/13 works plan are detailed in those documents
The 2012/13 Draft budget includes provision for asset renewal, significant additional funding, $1.8M for road infrastructure renewal projects. The capital works program has a budget of over $9.3M for roads, drainage and urban infrastructure and $2M for local road bridge replacement. The recurrent operational budget has increased in line with the NSW Government rate pegging.
Augmentation and asset replacement for council’s water and sewerage infrastructure has an allocation of $1.3M from the Water and Sewer fund not including the Four Towns Sewerage Project.
The Four Towns Sewerage project remains one of council’s biggest projects and has an allocation of just over $5M in the draft budget for Yeoval and Cumnock reticulated sewage and effluent management for the four villages.
Natural Disaster works
The March 2012 storm events caused over $300,000 damages to council’s road infrastructure. The majority of this work will be carried out in the current financial year, however there will be some carryover into the 2012/13 budget year.
Assets Section
The Integrated Planning and Reporting process and the accounting standards requiring current asset management plans, condition assessments and asset re-valuations provides council with comprehensive data and information not previously available to staff to identify and prioritise works on a cost benefit/risk management basis. The Asset section has been heavily involved in the development of these plans. The data will be used in setting works programs and prioritising projects for Works Committee and Councils consideration in line with the 2012/13 budget allocations.
Design Section
Council continues to undertake the majority of project design and specification in house. The training and skill development of “home grown” personnel has proven to be very successful. The 2012/13 budget has allocated funds for the purchase of new state of the art survey equipment that ensures council can continue to carryout engineering surveys in a cost effective and efficient way.
Operations – Roads and Bridges
The budget for councils roads and bridges works for 2012/13 is $15.9M, the highest ever, including over over $10M in capital works. The Roads and Maritime Services RMS (previously RTA) continues to be council’s largest customer with Council being the contractor for State Roads in the Cabonne LGA. The 2012/13 Ordered works and specific projects for RMS is over $2M with a likelihood of additional projects being granted to council throughout the year. An indication of the good relationship between council and RMS is evident in council being asked to undertake works on the Mitchell Highway at Larras Lee, work that RMS would normally do themselves. The purchase of the road reclaimer and spreader has proven to be very successful and will be fully utilised in the coming years with a focus on asset renewal.
Operations – Urban Services and Utilities
Water Fund – the major items in this area for 2012/13 is the augmentation of the Molong water supply reservoir and the preparation of feasibility study for secure and potable water supply for Yeoval and Cumnock. The Office of Water requirements for water supply dam surveillance and reporting is putting considerable strain on council’s staff. This issue is currently being reviewed to determine what action is required to continue to meet NOW requirements.
Sewer Fund – the Integrated Water Cycle Management Strategy for Cabonne has identified a number of actions, long term and short term. These works are included in the Delivery Programme 2012/13 to 2015/16 and Operational Plan for 2012/13. 2012/13 includes $277,000 for asset replacement.
Four Towns Sewerage Reticulation – the 2012/13 budget has allocation of funds for the continuation of the four towns scheme including works for Yeoval and Cumnock.
Urban Services – this area in the budget includes a wide variety of activities and services associated with urban areas throughout the Cabonne LGA;
Ø Footpaths, drainage, kerb and gutter maintenance and new – the 2012/13 budget has an allocation of $520,000 for the maintenance and provision of new assets in this category.
Ø Public Recreation - $880,867 has been allocated to public recreation, this area includes;
o Parks, gardens, reserves and showgrounds
o Sporting facilities
o Swimming pools
o Recreation and culture
Ø Town Beautification – mowing, tree maintenance street cleaning, VEP etc - $650,762 (includes $180,000 from reserve)
Ø Public Toilets - $90,423. Public toilets and mowing are areas that come under great scrutiny with pressure to increase the level of service. Investigations into alternate methods including (out sourcing) of delivering these services is in-train.
Plant and Depots
Council’s policy of maintaining a fully funded major plant replacement reserve has resulted in Cabonne Council having one of the most modern and complete fleet of heavy road making plant of any council in NSW. With the acquisition of the road reclaimer and spreader this year and the purchase of Mack Trucks and Dogs the construction capabilities of Cabonne is well placed to meet the work load for 2012/13 and beyond. Council staff uses a 10 year plant replacement program for financial management and review of the charge out rates.
The 2012/13 budget has an allocation for the removal of underground petroleum storage systems (UPSS). This is required following an environmental assessment of the existing tanks that found possible leakages.
Noxious Weed Management
Noxious weeds/animal control has a cost to the budget of $230,000. The increase is in line with the CIP.
Macquarie Valley Weeds Advisory Committee (MVWAC)
The MVWAC administers State funds for the management of weeds in the Macquarie catchment. Cabonne Council is the Lead Organisation for the Committee and hosts the Regional Project Officer. The provisional total State funds allocated to the MVWAC for 2012/13 is $1.165M. Council receives funding for the Regional Project Officer and weed management. Funding for weed management is an apportionment of the $1.165M less administration costs which is based on area. Council provisional amount for 2012/13 is $98,600.
Molong Limestone Quarry
Molong quarry products, particularly specified road base, DGB20 continues to gain more share of the regional market. The sales of road base has increased steadily of the past three years to be 35% of total product produced at the quarry. Lime continues to be the main product at 45%.
Electricity and plant operating costs are expected to increase significantly in the coming years and will require product charges to be adjusted accordingly to maintain profitability.
DIRECTOR OF ENVIRONMENTAL SERVICES REPORT
The 2012/13 draft IP&R report covering the role and function of Council’s Environmental Services Department aims at maintaining existing levels of services while seeking modest budget allocations to progress key programs.
The Environmental Service’s Delivery Program and Operational Plan focuses on the provision of an adequate level of service to the community with respect to development assessment and building control, strategic planning, environmental health, waste management, cemetery management and animal control. Many of these functions are shaped by State and Federal laws and have considerable impact upon the wider community.
Local Environmental Plan
The implementation of the new Standard Instrument LEP continues to be a priority to council and the community. The settlement strategies and the draft LEP have been submitted to the Department of Planning and Infrastructure for the issue of certification under s65 of the Environmental Planning and Assessment Act. Assuming the imminent receipt of the certification an extremely tight timeframe is available to the current term of council to facilitate the public exhibition of the plan, consideration of submissions and formal adoption of the LEP.
The current program also included the review of the council’s existing Development Control Plans and the preparation of a comprehensive DCP. This program has commenced utilising a consultant planner. The preparation of the DCP will continue during 2012/13.
State funding has been provided to council to assist with the mapping and drafting of the draft LEP plan to date. No increase has been sought in the 2012/13 budget as it is anticipated that the LEP and DCP programs can be finalised within the annual budget allocation.
The current role of the WBC Strategic Planner will continue until the Cabonne LEP is finalised. The Strategic Planner’s role within the WBC Alliance is due to be reviewed as part of the terms of the Memorandum of Understanding agreed to by the 3 Councils at the commencement of this program.
A one-off request for $100,000 is included in the 2012/13 budget to address the council resolution to carry out a strategic planning review of the supply and demand of rural residential land within Cabonne. This strategic recommendation was identified in the Ministerial endorsed Rural and Industrial Sub Regional Strategy.
Development and building controls
Staff levels have stabilised over the past 12 months. The Environmental Services team has benefited from two trainee positions, the full time appointment of a senior planner, the appointment through career promotions of a Manager Building and Environment. Contract / consultancy support has strengthened the delivery of waste management and building services roles. The budget allocation reflects retention of the current staffing levels and acknowledged the employment of contract relief staff ($70,000). Council contracts Food Inspections and offsets the cost by income generated from fees charged for the required inspections. The Environmental Services Department aims at a cost neutral situation in delivering this service.
Departmental resourcing focuses on planning and building assessments and inspections as a priority. Obligations to carry out septic tank inspection, swimming pool regulation inspections and heath inspections cannot be undertaken to acceptable levels due to staff levels, work load and budget allocation in these areas.
Waste management
This remains a key priority for council. Quadro P/L has completed comprehensive strategic and operational plans for the future management of council’s landfill sites and waste management services. Implementation of these programs is progressive. Budget allocation for 2012/13 enables site remediation to continue at Yeoval and Cargo tips.
The collective approach of Netwaste assists council in the cost effective operation of the landfill and transfer sites and the introduction of recycling technology such as the collaborative approach to the regional purchase of a glass crusher in 2012.
During 2012/13 council will investigate and seek to implement the provision of additional waste collection services for rural localities. As resolved by council this will be funded within the existing budget allocation and is to be off-set by waste charges levied with rates.
The remediation of the former Molong Gasworks site will progress into the coming financial year. Council has already planned for this required work, and sought funding from the Environmental Trust. The program is being developed to operate well within the existing budget.
Cemetery management
A concerted effect has been made during the current financial year to increase the level of service provided in the maintenance of the council’s 11 operational cemeteries. An upgrade of machinery has enabled a rotational mowing program of 2 weeks during the peak season and 3 weeks in the off-season (vegetation growth seasons). Council allocated additional funds in the current budget to enable the employment of contractors to assist with maintenance during peak times. This has enabled additional weed clearing and edge trimming to occur. This extra funding for maintenance is also provided in the 2012/2013 draft budget.
Programs to improve cemetery access roads, internal roads and boundary fences have also been implemented. Arrangements have been made with the Town Maintenance crews for the regular clearing of cemetery rubbish bins. Discussions have occurred with several interested community members in an endeavour to establish interest for creating Cemetery Volunteer Groups who can assist with smaller maintenance jobs as well as promoting the heritage conservation values of cemeteries. Continuation of the funding of the cemetery maintenance program is sought including confirmation of the $10,000 additional allocation for contract maintenance programs.
Animal Control
Council’s Ranger has indicated he will be taking extended leave and provision for a relief Ranger is covered in the existing Ranger Leave Entitlement vote. A relief service is currently being trialled by utilisation of a contract service.
Heritage
The existing Heritage Advisory Service and Heritage Grants program is to continue and will operate within the existing annual budget allocation. A request for funding ($20,000) to implement a comprehensive shire wide heritage interpretive signage program is included in the 2012/13 budget. This is in accordance with the work carried out by the heritage advisory committee, the heritage advisor and the village /community groups who have been working towards such a program for 8 or more years.
Environmental management, climate change and sustainability
A continuation of existing funding allocation is included to progress the adopted strategies contained within the ReSAP (Sustainability Action Plan) and supported by council’s sustainability team. Continuation of the annual funding of the Regional State of Environment Report as a collaborative by local government with the Central Western Catchment Management Authority is also included.
SENIOR ACCOUNTING OFFICER REPORT
Summary
The 2012/2013 budget is presented to Council in its Draft form as a balanced budget in accordance with the new Financial Reporting Requirements as previously advised to Council. It forecasts a total income of $41,345,436, with estimated operating expenditure of $26,051,536 (note includes depreciation), plus the proposed capital works and purchases program is in excess of $23,278,000. As mentioned, this is only a Draft at this time and may change with respect to both income and expenditure totals.
This budget has incorporated an additional $2.6 million in extra items submitted to the budget in the budget review and submissions process.
In the area of Transport and Communication in excess of $15.9 million dollars has been allocated, which includes both new Capital works programs and routine maintenance expenditure.
Rating income has been increased by 3.6 %, in accordance with the ruling from the Independence Pricing and Regulatory Tribunal and most items in the budget have increased by the same amount.
Other items worthy of note are identified under the various activities as follows:-
Governance
In this section $95,000 has been allocated to election expenses, and is only an estimate as this stage, based on advice given to Councils from the NSW Electoral Office. This will be funded from a Provision account set up solely for this purpose.
An additional item to the budget is Council’s contribution of an annual amount of $4,700, over a period of 3 years, to the project for the Constitutional Recognition of Local Government.
A new item also in this section of the budget is the allocation of $5,000 for the trial of a Newsletter, to be sent to residents and ratepayers. Further details of the Newsletter will be established in the coming months, as to content and regularity.
$50,000 has been set aside for the training of Councillors and $15,000 to fund a function for retiring Councillors.
Administration
Plant purchases are identified in this section and will be $1,732,380,this includes the cost of replacement of vehicles and other plant equipment, in line with the Plant replacement program. Plant sales are estimated to be $950,000 and offsets the cost of the purchases of replacement and new plant items.
On costs and Overheads have been calculated on the amount of works 8identified in the budget and, of course, depends entirely on those works being achieved.
Transfer from Council’s reserves and provision accounts, excluding water and sewerage funds total, $5,241,890.
Public Order and Safety
The contribution for the Rural Fire Service Brigade has been included in this budget as $161,914, although no accurate advice has been received to the date of this report.
Also included in this budget is the carryover cost for the Armstrong Street land at Canowindra, expected to be $114,537. Another significant expenditure in this area is the contribution to the State Emergency Services of $39,796.
Health
The main expense in this area is the Salary and wages component of the Health and Building staff.
Environment
$701,000 has been allocated to the Eugowra/Molong Flood Plain works. A further amount of $330,632 has been allocated to other Floodplain management works, including river clearance expenditure, and $210,000 allocated for the voluntary purchase scheme of a property in the flood plain area.
In excess of $1.3 million dollars has been estimated to be spent in the area of domestic waste management. This includes contractor’s charges for the collection of waste, salaries and wages, landfill and transfer station running expenses. Also included is $115,000 in rehabilitation costs for some of the landfill sites.
Expenditure in the area of Cabonne Council noxious weeds program exceeds $230,000.
Community Services and Education
Over $1.3 million dollars is to be spent in the area of Community Services and Education in the form of grant funding for programs such as Family Day Care, Home and Community Care, Public Transport, Family Support Program and other smaller programs such as Youth Services and Senior Citizens Week. This area is funded mainly by operational grants and represents a large section of the budget, and is a most important benefit to the Community.
Housing and Community Amenities
Salary and wages costs for the Town Planning staff are included here, as well an allocation of $70,000 for employment of relief staff. A one off allocation of $100,000 has been applied for a review of the potential and supply of smaller allotments for residential development.
An upgrade of the public toilet facility in Manildra has been included in the budget and $100,000 has been allocated. Cemetery maintenance expenses total $131,661 and an additional $17,000 in continuing upgrade of the cemeteries has been allocated.
Water Supplies
Generally usage charges income for water consumption is down, based on current statistics, but of course that is largely due to the extraordinary season that has been experienced.
However, users are generally heeding the message of “Being Water Wise” and limiting their use of this commodity. This may be of concern in the coming years as Council must recover the full cost of water and sewerage operations, this may result in an increase in water usage charges.
Over $2.69 million dollars has been allocated to new capital works and asset purchases for the 2012/2013 year, this amount however, does include some revoted projects from the current year which are not expected to be completed.
$1.25 million dollars has been allocated to the Gidley Street Reservoir and other projects include, high level reservoir seals, Molong Creek environmental flows, emergency drought programs and others.
Sewerage Services
The Cabonne sewer fund will expend over $859.000 and receive income of $1,205,000. Asset provision for this area is $170,000 and will include the provision of Groundwater monitoring in Canowindra and Eugowra, nutrient removal in the Molong sewer treatment plant.
The Small Town Sewerage will expend $4,123,000 in the various small towns projects and a new loan of $2.5 million dollars has been identified as being required for the completion of the project.
Recreation and Culture
Almost $2 million dollars has been allocated to this area and includes $1.7 million dollars for the Canowindra Pool, along with other improvements to Council’s other pools amounting to $85,500.
$432,000 has been allocated to other Parks and Gardens including $200,000 for the installation of shade structures and the remainder to park improvements including irrigation supplies, a storage shed, concrete aprons, a fence and other small improvements.
Mining Manufacturing and Construction
Expenditure in this area totals $1,998,832 and income totalling $2,207,390 which results in an overall profit in this area.
Separate reports will be made to Council with regard to the Quarry operations.
Transport and Communication
Income from the Roads and Maritime Service for RMCC Routine has been estimated as $512,000 and Ordered Works as $760,000, although this is expected to increase as the new financial year draws nearer. This Department does not usually give information about next year’s funding until closer to June and even as late at September.
$1.3 million dollars for RMCC specific project has been allocated to the Meranburn Project and $900,000 has been distributed from the Block Grant to various activities such as maintenance, roadside vegetation signage and other activities.
The Repair Grant of $840,000 has been assigned to the Nyrang Repair Rehabilitation.
In the FAG funded road works area $3.5 million dollars has been allocated to various activities including reseals, line marking and signage while $450,000 has been assigned to Rehabilitation. Other allocations include $350,000 to Street sealing and $1.8 million to Asset Renewal.
In the Local roads area in excess of $488,000 has been allocated to sealing along with an additional amount of $400,000 to various re seals around the village areas. $625,000 is allocated to maintenance and $688,000 to gravel re sheeting.
Kerb & Gutter renewal has been allocated $100,000. $110,000 to cycle ways and $200,000 to Footpath renewal.
$700,000 is expected in contributions to fund the improvement of the Cadia Road at Four Mile Creek.
The Bridge program has been allocated $2 million dollars and an additional amount of $800,000 to fund the completion of Cotton’s Bridge.
This is a massive budget for our Transport and Communication area and a total for capital works and maintenance expenditure exceeds $15.9 million dollars.
Economic Affairs
Expenditure in this area includes Caravan Parks $256,757, Tourism and Development $594,431 and Other Business Undertakings which includes Private Works of $249,106.
Asset development in this area totals in excess of $2.3 million dollars and includes the remediation of the old gasworks site.
$200,000 is included for surveys and investigation of Residential land at Manildra.
Village Enhancement programs continue and $180,000 has been allocated to this area.
General Purpose Income
As previously noted rating income has increase by 3.6% and the total General Rate income is $8,963,328.
This amount is calculated on Council’s allowed notional income. Council will be using the latest valuations provided by the Land & Environment Department with a base date of 01/07/2011.
This may affect the actual increase in rates for individual rate assessments depending on the new valuation, but in total Council’s allowable income does not exceed 3.6%, based on the amount of income the total valuations with the previous valuation date would achieve.
The Financial Assistance Grant for the General component has been noted as being $2.385 million and a further $3.75 million has been allocated in the Transport and Communication area representing, in part, a back log of unused funding. The details of where the additional funding will be spent is outlined in the Transport and communication section.
Interest income has been calculated on an average return of 5%. This percentage rate has been derived upon after consultation with Financial providers and, although conservative, represents a safe margin considering the present and foreseeable economic outlook.
ECONOMIC DEVELOPMENT MANAGER REPORT
The Draft Cabonne Delivery Program, Operational Plan and Resourcing plans are now ready for wider distribution and to be placed on public display.
These plans are a requirement under the Integrated Planning and Reporting Framework (IP&R) introduced by the Division of Local Government in 2009.
The Delivery Program is based on the Community Strategic Plan (CSP) and outlines the actions that Cabonne Council will undertake to work towards meeting the goals of the community in a 4 year timeframe. This is aligned with the term of an elected Council.
The annual Operational Plan details the activities to be undertaken each financial year to support the Delivery Program.
What is Integrated Planning and Reporting?
- Council has had a number of reports and workshops on IP&R. The following is a summary of process, plans and terminology previously reported and workshopped.
Legislation requires Council to have:
· Community Strategic Plan for the local government area (CSP)
· A four year Delivery Program that aligns with Council elections (Delivery Program – DP)
· An annual Operational Plan and Budget Summary (OP)
· A long term Resourcing Strategy and Plan – Asset Plan, 10 year Long Term Financial Plan, 4 year Workforce Plan
· An Annual Report that describes progress in achieving the community strategic plan. This also includes the State of the Environment Report
Integrating Council plans
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Planning linkages and language
This table shows the relationship and the common elements between the Community Strategic Plan, Delivery Program and the Operational Plan.
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Community Strategic Plan 10 years |
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Vision Values Future directions |
Delivery Program 4 years |
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Strategic outcomes |
Strategic outcomes |
Operational plan Annual |
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Actions |
Actions |
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Tasks & Budget |
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WHAT |
WHAT & HOW |
HOW |
Strategic Plan framework and terminology
Vision: what we want the Council Area to be like in
the future. 
Future
Directions: Groupings of similar themes to help achieve the
vision (high level) Strategic
Outcomes: to help achieve the future directions and
vision. (what) Determined by the
community with council – describes how we will work together and
behave Values
Statement: To guide future choices and the way we work
together. Actions
– how council will
help achieve the strategic outcomes Determined by Council
staff and endorsed by Council – embedded in the Delivery and
Operational Plans Tasks –
very specific and easy to measure
– “jobs” that people will do to achieve the
overall vision (what) Performance
measures -so we know how we are
going and if we have achieved what we said we would Identified by both
community and council – should be easy to measure. Embedded in
CSP and DP
Council’s Role(s)
Remember - the overarching document is the Community Strategic Plan – determined by the community. Council is only one organisation that can help realise the Community Plan. It cannot and should not do everything. There are many groups and organisations that need to play a role.
There are three roles councils can play:
· Provider - Council does the work or provides the service (including regulatory functions)
· Facilitator - Council helps or works with others to get things done
· Advocate - Council speaks out and supports a community direction or issue
Next Step:
Councillors have been provided the following documents electronically for endorsement:
· Community Strategic Plan – Cabonne 2025
· Delivery Program 2012/13 to 2015/16
· Operational Plan 2012-2013
- Part 1 - The Activities
- Part 2 - Financials including Fees and Charges
· Resource Plans
- HR Workforce Plan
- Asset Management Plan
o Asset Management Policy
o Asset Management Strategy
o Water Supply Asset Management Plan
o Building Asset Management Plan
o Recreation Asset Management Plan
o Sewer Asset Management Plan
- Long Term Financial Plan
Council’s staff continue to work on the requirements for Integrated Planning and Reporting. This will include the promotion for community members and relevant groups to have the opportunity to review these documents and provide comment to Council. It is anticipated that these Draft Plans will be included in the June Council Meeting Business Papers for final adoption. Both of these documents are required to be submitted to the NSW Division of Local Government by 30 June 2012.
Please note, for ease of use and referencing, all annexures referred to are on the disc which has been given to all Councillors
