Agenda of Extraordinary Meeting

ITEM 1 - APPLICATIONS FOR LEAVE OF ABSENCE

REPORT IN BRIEF

Reason For Report	To allow tendering of apologies for Councillors not present.
Policy Implications	Nil
Budget Implications	Nil
IPR Linkage	4.5.1.f - Code of Meeting Practice adopted and implemented.
Annexures	Nil
File Number	\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS LEAVE OF ABSENCE - 464229

Recommendation

THAT any apologies tendered be accepted and the necessary leave of absence be granted.

General Manager's REPORT

A call for apologies is to be made.

ITEM 2 - DECLARATIONS OF INTEREST

REPORT IN BRIEF

Reason For Report	To allow an opportunity for Councillors to declare an interest in any items to be determined at this meeting.
Policy Implications	Nil
Budget Implications	Nil
IPR Linkage	4.5.1.f - Code of Meeting Practice adopted and implemented.
Annexures	Nil
File Number	\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS DECLARATION OF INTEREST - 464230

Recommendation

THAT the Declarations of Interest be noted.

General Manager's REPORT

A call for Declarations of Interest.

ITEM 3 - DECLARATIONS FOR POLITICAL DONATIONS

REPORT IN BRIEF

Reason For Report	To allow an opportunity for Councillors to declare any Political Donations received.
Policy Implications	Nil
Budget Implications	Nil
IPR Linkage	4.5.1.f - Code of Meeting Practice adopted and implemented.
Annexures	Nil
File Number	\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS DECLARATION OF POLITICAL DONATIONS - 464231

Recommendation

THAT any Political Donations be noted.

General Manager's REPORT

A call for Declarations of any Political Donations.

ITEM 4 - 2013/2014 INTEGRATED PLANNING & REPORTING

REPORT IN BRIEF

Reason For Report	To present the Integrated Planning & Reporting documents, including budget summary, and advise Council of key issues and recommend its consideration and adoption by Council.
Policy Implications	Consistent with Council's policies and directions set during this and previous terms of Council. Note incorporates requirements of State Government's Integrated Planning & Reporting.
Budget Implications	Provides funds for Council projects and authorises work to be carried out. Also allows for long term financial planning.
IPR Linkage	4 - A Council that is effective and efficient.
Annexures	1. Draft Budget 2013 2014 2. Reserve List for Draft Budget 2013 2014
File Number	\OFFICIAL RECORDS LIBRARY\CORPORATE MANAGEMENT\PLANNING\INTEGRATED PLANNING AND REPORTING 2013 - 464142

Recommendation

THAT Council:

1. Adopt the Draft Community Strategic Plan – Cabonne 2025.

2. Adopt the Draft Delivery Program 2013/14 to 2016/17

3. Adopt the Draft Operational Plan 2013 – 2014

· Part 1 – The activities

· Part 2 – The 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 Management Plan

o Building Asset Management Plan

o Recreation Asset Management Plan

o Sewer Asset Management Plan

o Transport Asset Management Plan

· Long Term Financial Plan

5. Publicly exhibit the Draft Community Strategic Plan – Cabonne 2025, Draft Delivery Program 2013/14 to 2016/17, Draft Operational Plan 2013/2014 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 $15.50 per copy, with sections of the plans program being photocopied at a reduced rate of 15 cents per page.

6. Adopt an interest rate of the maximum allowable percentage allowed the Division of Local Government for the 2013/14 is charged on arrears of Rates and Charges.

General Manager's REPORT

2013/2014 will see the first review of Council’s Integrated Planning and Reporting (IP&R) requirements, incorporating a number of documents:

· Draft Community Strategic Plan – Cabonne 2025

· Draft Delivery Program 2013/2014 to 2016/2017

· Draft Operational Plan 2013/2014

o Part 1 – The Activities

o Part 2 – Financials including Fees and Charges

· Draft Resource Plans

o HR Workforce Plan

o Asset Management Plan

§ Asset Management Policy

§ Asset Management Strategy

§ Water Supply Asset Management Plan

§ Building Asset Management Plan

§ Recreation Asset Management Plan

§ Sewer Asset Management Plan

§ Transport Asset Management Plan

o Long Term Financial Plan

· Draft Consolidated Income Statement

· Draft Net Expenditure by Category.

Community Strategic Plan

Under section 402 of the Local Government Act each Local Government must have a Community Strategic Plan that has been developed and endorsed by the council. A Community Strategic Plan is a plan that identifies the main priorities and aspirations for the future of the Local Government Area covering a period of at least 10 years from when the plan in endorsed. All councils must review the Community Strategic Plan before 30 June following each election.

The Cabonne Community Strategic Plan ‘Cabonne 2025’ was formally adopted in March 2012. This was the culmination of a period of extensive community consultation commencing in 2009. It commenced with extensive surveying being undertaken of the towns, villages and localities throughout the area to determine future priorities of each of the communities.

In 2011 consultants were engaged to assist Council in conjunction with its WBC Alliance partners to further develop the strategic plan and on 19 July, 2011 in the Cargo Community Hall, 82 passionate community representative of the Shire’s demographic profile attended a workshop to further develop the plan. On 16 August, 2011 a smaller representative group were brought together to shape the final draft of the plan prior to it going on public exhibition during December 2011 and January 2012. This resulted in the final plan being adopted in March 2012. In view of the comprehensive consultation that was undertaken and the absence of any major developments in the intervening period it is suggested that the plan as adopted in March, 2012 again be placed on public display for consideration for adoption for this term of Council.

Delivery Program

Section 404 of the Local Government Act requires that each council must have a Delivery Program detailing the principle activities to be undertaken by the council to implement the strategies established by the Community Strategic Plan within the resources available under the council’s resourcing strategy.

The Act also requires that the council must establish a new Delivery Program after each ordinary election of councillors to cover the principle activities of the council for the 4 year period commencing on the 1 July following the elections.

As the Delivery Program is the most important tool in measuring the councils performance over its full term it is essential that councillors carefully examine the draft Delivery Program to ensure that it not only contains measure to implement the strategies established by the Community Strategic Plan but also that these strategies are able to be delivered within the term of council.

The Program is a means by which council will be assessed by the community on its effectiveness in achieving its objectives over its full electoral term.

Operational Plan

Each council must also have an Operational Plan that is adopted before the beginning of each financial year that details the activities to be engaged in by the council during the year as part of the Delivery Program covering that year.

Council staff have been involved in an extensive review of the Operational Plan for the 2013/14 year and for the first time have tied all expenditure items within the budget to individual operational tasks within the Operational Plan. This will enable reporting not only of the performance measures of individual task measurement but also against budget allocations.

As this is the first year that such an endeavour has been attempted it is anticipated that there will be a requirement for further fine tuning between the various operational tasks identified and budgets to which they have been linked. It is hoped however that this will provide council with a more meaningful means by which to measure its performance on a regular basis.

Resourcing Strategy

Each council must also have a long term resourcing strategy for the provision of resources required to implement the strategies established by the Community Strategic Plan. This strategy is to include long term financial planning, workforce management planning and asset management planning. A detailed long term financial plan has been drafted and together with the Workforce Management Plan and a number of other documents in relation to asset management planning. These are the Asset Management Policy, Asset Management Strategy and Asset Management Plans for Transport, Recreation, Sewerage and Water Supply.

Conclusion

All of the draft documents for the Integrated Planning and Reporting requirements of council have been made available to councillors on their iPads under Council Documents/IP&R. Drafts are then listed for council’s consideration.

DIRECTOR OF FINANCE & 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 Wednesday 8^th May 2013 inviting public submissions. These submissions will close at 5.00pm on Wednesday 5^th June, 2013.

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 2013/14 Operational Plan is consistent with the IP & R 2013/14 -2016/17 Delivery Plan in that the maintenance of council’s civil assets is based on total life cycle asset management, level of service and risk.

The 2012/13 budget provided a significant one off injection for asset renewal that has significantly reduced the funding gap. Major local road asset renewal projects included over one million dollars of renewal works on Casuarina Road and major renewal works on Kurrajong Road. The 2012/13 budget also provided an injection of capital for the bridge replacement program. This has seen the replacement of a number of bridges brought forward, including Cottons, Marylebone, Brymedurah and Dry Creek Road.

The 2013/14 Operational Plan incudes budgets for the continuation of asset renewal and asset up-grades based on a socio/economic cost benefit rationale.

Natural Disaster works

There were no Natural Disaster declarations in the previous financial year however a Section 44 bush fire declaration was made for the fires in January. Council staff and plant contributed to the combating of these fires and received commendation from the RFS for their services.

Assets Section

Asset section continues to maintain the asset registers and provide input into the maintenance and renewal programs. The asset group re-valued in the 2012/13 year was Buildings and land, this year there will not be any asset revals however Roads and Bridges will be re-valued in 2014/15. Note, all asset groups are required to be re-valued on a 4 year rolling program.

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 purchase of new state of the art survey equipment purchased last year has worked well and improved productivity.

Operations – Roads and Bridges

The Roads and Maritime Services RMS continues to be council’s largest customer with Council being the contractor for State Roads in the Cabonne LGA with projected works exceeding the $2M in 2013/14. As mentioned previously the focus on the local road network will be the renewal of the rural sealed road network. The gravel road maintenance and re-sheeting program will be maintained with the usual rate pegged increase. A detailed asset renewal program will be submitted to Works Committee in August/September.

Operations – Urban Services and Utilities

Water Supply and Sewerage Services – Implementation of Drinking Water Guidelines continues to put a strain on the Water Fund as the regulatory requirements for quality management increases demand on human resources and technology. Council is required to implement best practice for water supply and sewerage services and has recently reviewed its Strategic Business Plan. The Strategic Business Plan (SBP) identifies legislative requirements, levels of service and resources needed to meet these goals. The outlook for water supply and sewerage service fees and charges will necessarily see a higher than CPI increase in the medium to long term.

Four Towns Sewerage Reticulation – Work on the Yeoval and Cumnock sewerage reticulation and treatment has started with contracts for the construction of the SPT’s and On-Property works signed. Council has received approval to undertake the mains reticulation works under a single invitation contract with the Officer of Water.

Urban Services – this area in the budget includes a wide variety of activities and services associated with urban areas throughout the Cabonne LGA and includes;

Ø Footpaths, drainage, kerb and gutter maintenance,

Ø Public Recreation areas;

o Parks, gardens, reserves and showgrounds

o Sporting facilities

o Swimming pools

o Recreation and culture

Ø Town Beautification – mowing, tree maintenance street cleaning public toilets.

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 fleets of heavy road making plant of any council in NSW. With the acquisition of the road reclaimer and spreader last year the Operations team have perfected the heavy patching and rehabilitation activity with significant financial and operational benefit. The potential for Cabonne Council to “hire out” this service to other road authorities has become a reality.

Council staff use a 10 year plant replacement program for financial management and review of the charge out rates. Major plant items for replacement in 2013/14 includes 2 motor graders. Consideration is also being given to increasing the roller plant based on the past year’s external hire expenditure.

Security and accommodation for the Purchasing Officer and Overseers in the Molong Depot has been included in 2013/14.

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. Council receives funding for the Regional Project Officer and weed management.

Molong Limestone Quarry

Molong quarry products, particularly specified road base (DGB20) continues to gain more share of the regional market and is about 50% of the total production of the quarry.

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 2013/14 draft IP&R report covering the role and function of Council’s Environmental Services Department aims at maintaining existing levels of services while seeking budget allocations to progress key programs.

The Environmental Services 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 Standard Instrument Local Environmental Plan (LEP) was implemented on 18 January 2013. Cabonne LEP 2012 provides the legal framework for the strategic planning and future growth of Cabonne. With the implementation of the new LEP, focus now turns to the requirement for introduction of a comprehensive Development Control Plan (DCP) to support the LEP. As a WBC initiative a template DCP has been drafted and each of the three councils will be working towards adapting the template DCP to address local strategic issues. The preparation of the Cabonne DCP is to be carried out by council staff during the latter part of 2013.

Also part of the review of documentation supporting the planning provisions, council is required to review its Development Contributions Plans. A budget allocation has been requested to enable the engagement of a consultant to carry out the review.

The WBC Strategic Planner has concluded his project work with the WBC Alliance councils. Continued funding of this position will not be required for inclusion in the forthcoming budget. Prior to finishing the term of employment the Strategic Planner completed preliminary research and analysis of the demand and supply rationale for provision of rural residential land within Cabonne. Funding was provided in the 2012/13 budget for consultancy work in this area. Continuation of the study is likely to be required subsequent to the introduction of the Standard Instrument LEPs for the sub regional area of Cabonne, Orange and Blayney, however no additional funding is sought at this time.

Development and building controls

Staff levels have remained stable over the past 12 months, with contract support continuing to enable delivery of health and building as well as waste management services. Council has not been able to fill the vacancy left by the resignation in October 2012 of the Manager Building and Environment. The budget allocation reflects retention of the current staffing levels and acknowledged the employment of contract relief staff. 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 critical stage 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 continues as a key priority for council. Comprehensive strategic and operational plans for the management of council’s landfill sites and waste management services continue to be implemented through the operational and delivery plans. Implementation of these programs is progressive. Budget allocation for 2013/14 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. Annual collections for household chemicals, waste oil and the like have been well received by the community.

Investigation of ways to implement the provision of additional waste collection services for rural localities will be continued in 2013/14 as staff resources permit. As resolved by council, provision of any additional services will need to 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 planned for this required work, and sought funding from the Environmental Trust. The program is being developed to operate within the existing budget. The program is likely to be facilitated for council by a consultant project manager. This cost will need to be integrated within the existing budget.

Cemetery management

A concerted effort has been made during the current financial year to maintain the level of service provided in the care of the council’s 11 operational cemeteries. The internal road at the Eugowra Cemetery has been repaired and sealed. Boundary fence repairs have been carried out at the Molong Cemetery.

July 2013 marks the 150^th anniversary of the Molong Cemetery. This provides opportunity to work with the community to commemorate the anniversary. It is already programed to replace the existing timber picket entry fence and gate surround to the cemetery. A budget allocation is sought to enable the work to be completed to mark the anniversary of the dedication by the Crown of the land for a cemetery.

Animal Control

Council’s Ranger has been on extended leave due to health issues. This situation is likely to continue into the coming financial year. Provision for a relief Ranger is covered in the existing Ranger Leave Entitlement vote. A relief service has been facilitated by the services of council staff for routine patrols and a contract ranger for investigation work.

Heritage

The existing Heritage Advisory Service and Heritage Grants program is to continue and will operate within the existing annual budget allocation. The state government heritage grants are offered on a three year basis and the next round of funding has been announced recently. Council will be applying to continue the existing programs. An application will also be made for funding to carry out a Main Street heritage Study for Gaskill Street, Canowindra. Council would be required to provide funding for the project and a request for $10,000 has been included in council’s draft budget to support this proposed program.

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’S REPORT

Summary

The Draft budget for the year 2013/2014 is presented within the Operational Plan. This is the first time that the budget has been complied and presented in the new Synergy Soft system, in total. The input of the budget allows budgeting down to the various income and expenditure items such as salaries, subscriptions, contributions, other revenues and many more, for each of the work orders or job numbers linked to a ledger. Comparison with the current year’s budget is not possible, as the position of some of the arrears have changed and the Service provider is still working with some of the aspects of work orders included in our current budget.

The budget forecasts income of $34,387,974 as operational income, with a further $11,805,400 to be received in capital income. The total income is expected to be $46,193,374.

Operational expenditure totals $37,235,021, including depreciation of $9,560,000, with a further total of $19,976,614 expected in capital purchases.

Rating income has been increased by the allowable increase, as set by the Independent Pricing and Regulatory Tribunal; this was 3.4%. Other budget items have been increased by the same amount, except when it is known that cost will be higher, for example energy costs and insurance.

The following summary, by Section, gives more information concerning each program, with special attention to matters worthy of noting.

Governance

The Conduct Review program has been allocated $20,000 in this year and the future directions forum has also been allocated $20,000.

No other major changes are noted here and the total expenditure budgeted is $447,866, with a small amount of income, $1,850.

Administration

This section outlines the cost of employment of all staff and the basic running of Council’s administration offices.

An award increase of $3.25% applies to Council employees from the 1st of July, 2013 and, as well, the cost of superannuation will increase from 9% to 9.25%. Changes are also noted in the Fringe Benefit Tax calculations which will affect Council, moderately.

To maintain and expand Council’s I T area $325,000 has been allocated to new asset purchases. Part of these costs are aligned with Council’s 4 year computer replacement plan.

Also included in the Administration Program is the cost of running Council’s depots and workshops. Workshop operations will cost $81,974 while depot operations for the 2013/14 year are expected to total $274,692.

Plant operations are included in this section and for the coming year it is determined that $2,152,581 worth of new plant items will be purchased. Asset sales are expected to be $642,000.

On costs and overheads also appear in this section and are calculated on the amount of works Council has identified to achieve in this budget. Gaining those offsets will depend entirely upon those works being fully completed. In the Quarterly Budget review process they will be monitored closely.

The impact on reserve and provision accounts are not noted here, as in previous budgets, but are applied throughout the whole budget under the particular Program. In total, including the Water and Sewerage funds $1,338,940 net has been withdrawn from Council’s reserves and provision accounts.

WBC Alliance

The total expenditure in this section is $202,024 this includes the salary and expenses of the Executive Manager and Internal audit costs amounting to $20,000. Part of that total expenditure includes $8,000, the cost of the annual forum. To offset these expenses contributions from the other alliance partners will be $139,598 and the remaining costs covered from Council’s provision account.

Public Order & Safety

The contribution to the NSW Rural Fire Service has not yet been calculated by that the Department and will not be available until November of this year.

The 2012/2013 contribution as been used and an increase of 3.4% added. Total Fire Services expenditure is $271,560.

No major changes in the animal control or the SES areas are noted.

Total Expenditure in Public Order and Safety is $487,221.

Health

The major expenses in this area are the salaries of the Health Administration staff. Total expenditure in this area is $534,319 with income of $104,459.

Environment

Some of the areas included in this program are Domestic Waste, Other Waste, Street Cleaning, Weeds Destruction and Environmental Protection.

Disposal of waste continues to be a high cost to Council with the landfill operations for all of our centers expending $655,897. This is offset with expected income of $123,625.

Street cleaning is also another costly service the total cost in the 2013/2014 budget is $211,517.

Weeds destruction is expected to be a total expense of $362,387 with a contribution from the State Government, to control invasive species of $100,653. Council must spend an amount of $201,306 in that program of invasive species to receive the grant funding.

Funds allocated for the work on the Molong and Eugowra Flood Plain areas will not be finalised in the current year and have been revoted for next year’s program. That cost will be $601,000 and as well an amount of $250,000 has been allowed for a voluntary purchase scheme within the flood plain area.

Another environmental protection area which includes the Molong Creek, Puzzle Flat Creek , Manadgery Creek and Belubula River clearance operations has been dedicated an amount of $73,568.

Community Services and Education .

Operational grant income in this area exceeds $1,298,000. This includes the areas of the community who are in need of assistance such as Family and Children’s Services, including the After School Hours Care areas of Blayney, Mullion Creek and Millthorpe and Family Support . The aged are assisted with programs, such as Community Transport, Community Visitors Scheme and Home and Community Care. These are very important areas of our Community care within Cabonne.

Other smaller programs like Youth Services and Senior Citizens Week are also catered for and funded mostly by Council.

Housing and Community Amenities

Salary costs for Town Planning are recorded in this section and a new item for $40,000 has been noted for a review of Development Plans. Funds have been allocated to a Gateway Planning Preparation Proposal in the amount of $15,000 and has been funded from Reserve.

$100,000 gross amount has been revoted for the Manildra Public Convenience upgrade.

A new item has been included in this budget for a project to review Cabonne Village Tourist Precincts, the funds allocated are $60,000 and will be funded from reserve.

Cemetery maintenance is estimated to be $129,745. A new asset purchase has been included valued at $25,000 to replace the gate at the Molong cemetery.

Water Supplies

The main item of change in this area is that all water charges have increased by 10%.

This higher increase has become necessary to implement as the cost of providing the service to the community is far outstripping the income received. Council must recover the full cost of providing the service, in order to have a sustainable future. With the introduction of User pay charges, more residents have become water wise, and the consumption of water has decreased considerably, thereby adding to the pressure of supply and another reason for the increase in charges.

The total capital expenditure in the Water fund for the 2013/2014 budget is $479,098.

Sewer Supplies

Cabonne Sewer which includes Molong, Canowindra and Eugowra will spend $828,127 on various activities including pumping stations, gravity reticulation, telemetry, irrigation and others.

In excess of $1,300,000 will be received as income, and capital expenditure totaling $724,496 will provide new assets in the Sewerage area and upgrade existing assets.

Small Town Sewerage is progressing with stages for Cumnock and Yeoval still to be completed. In this budget no income has been included from these towns and will not until each of the programs is commissioned. Accordingly the income for this area totals only $320,232.

Expenditure is high, as the first instalment of the sewerage loan of $2,500,000 has been included in this budget. That amount including principal and interest is $231,574.

Capital expenditure of$8,503,070, has been included for Yeoval and Cumnock Projects and $453,070 for additional works for the Manildra Sewerage scheme. Capital income of $,5863,400 in grant funds and the loan of $2,500,000 has been included in this budget.

Recreation and Culture

This is one of the most significant areas of Council and in total $1,253,436 is expected to be expended in this area next year in operational expenditure. This is divided over the different areas and can best be seen on the summary page of the budget.

The total of capital expenditure in this is $2,180,609 and includes allocations to Swimming Pools, Playgrounds, Public Halls, Parks and Gardens and Sporting grounds, with $135,000 allocated to the Local Area Improvement Program and the Community Improvement Program. The major item included in this area of capital works is the completion of the Canowindra swimming pool and $1,700,000 has been allocated to this project.

Library facilities provided to the community will cost in total $215,313. This includes an expected grant of $53,074. This amount cannot be confirmed as yet, and may reduce.

The total expenditure on museums in our area will be $71,014. This includes the Age of Fishes and smaller contributions to other museums at Eugowra, Canowindra, Yeoval and Manildra.

Public halls have been allocated an amount of $40,200 to complete new asset items already included in this year’s budget but will not be completed and new items including a report to be commissioned reviewing the potential upgrades of all halls within Council’s areas.

Swimming pools will cost in excess of $250,000 in operational expense.

Parks and gardens including sporting ground within all of the villages will incur an operational expense of approximately $272,000.

Mining Manufacturing and Construction

Income is estimated to be $1,699,103 and expenditure of $1,524,323.This area includes the Molong Limestone Quarry operations.

Transport & Communication

An allocation for maintenance has been made to Cabonne Local Roads totaling $3,597,962. This vote includes such activities as sealing routine maintenance, Roadside Maintenance, Gravel Maintenance, Hazard reduction, re sheeting and resealing. Although these activities have been included here, as maintenance, at the end of the year any activity which substantially increases the life of an asset will be capitalised.

Local Roads construction totals $1,650,000 and includes $952,644 Gumble Cumnock Road, Cadia Road Four Mile Creek $390,000 and Cadia Road Exploration Hill.

State Road routine maintenance is estimated to be $527,000 and income from that source will cover this work. Ordered works has been entered into the budget as $2,555,000 but as previous forecasts have shown, this figure will undoubtedly increase as the year progresses

Regional Roads include $1,050,000 allocated to maintenance and $300,000 to the Repair of Main Road 573 Burrendong Way.

The Local bridges program includes votes applied to St Germains Bridge and Marlyebone Bridge, projects for the current year but revoted into 2013/2014.

Regional Bridge Construction sees an allocation from the RMS of $500,000 to complete the Nashdale Bridge.

Footpaths vote for the current year has also been revoted and appears in this budget. The allocation is $199,000. As well, Kerb and Guttering construction has been revoted $100,000.

Pathways or cycleways have been allocated $295,000. Grants totaling $207,500 will cover most of this cost with the remainder funded from Council funds.

A new item in this budget is a project for a street tree audit. This audit has been deemed necessary to assess the condition of trees within the village areas, with a view to replacing them with more appropriate species and or recommendation of removal where necessary. This project will be funded for the Reserve set aside for Tree Rehabilitation.

The total expenditure in the Transport and Communication area, including capital items amounts to $12,199,169

Economic Affairs

Caravan parks will expend a total of $267,010 and the expected income to offset this expense will be $148,281.

A new portable building is to be purchased to house the Canowindra Caravan park office. The cost of this building will be $25,000 and is to funded from insurance funds still held by Council after the previous building was destroyed.

New solar water heaters are proposed for the Canowindra and Molong parks and this will reduce the high energy costs which all sections of Council are currently experiencing.

The total Tourism budget is $245,403 and includes allocation for advertising events and festival projects and the implementation of tourism plans.

$142,000 has been reallocated the Business Development Assistance Program, with further funds direct to the Daroo event, advertising, contributions and the Community Plan.

Land Development has included $170,000, to assist with further development of the Manildra Residential Scheme .

General Purpose Income.

Income from rates is expected to be $9,284,184, this may change slightly depending upon the valuation changes not yet received but affecting the calculation for the notional income for the 2013/2014 budget.

Other General Purpose Income, that is, the Financial Assistance Grants of $2,397,776 for the General portion and $1,838,685 for the Roads component, is also included in this section.

Interest income has been calculated on an average return of 3.5%, this figure is conservative but with the outlook advised by council’s banking advisors it is considered appropriate. This will be closely monitored throughout the year and any changes will be identified and noted in the Quarterly Budget Review.

This a Draft budget and may be subject to some changes before the adoption date.