cabonne Council colour 200 wide

 

 

 

 

 

 

 

 

 16 April 2015

 

 

NOTICE OF WORKSHOPS &

EXTRAORDINARY COUNCIL MEETING

 

Your attendance is respectfully requested on Tuesday 21 April, 2015 for the FIT FOR THE FUTURE & BUDGET WORKSHOPS commencing at 9.30am followed by an EXTRAORDINARY MEETING commencing at 2.00pm, at the Cabonne Council Chambers, Bank Street, Molong to consider the undermentioned business.

 

The Directors will be available for consultation on matters contained in the business paper prior to lunch which will be provided from 12noon.

 

 

Yours faithfully

GM - A Hopkins Signature

Andrew L Hopkins

GENERAL MANAGER

 

 

ORDER OF BUSINESS

 

1)            Open Ordinary Meeting

2)            Consideration of General Manager’s Report

a)      Family Day Care Budget Implications

b)      2015/16 Budget Consideration


 

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COUNCIL’S MISSION
“To be a progressive and innovative Council which maintains relevance through local governance to its community and diverse rural area by facilitating the provision of services to satisfy identified current and future needs.”
 

 

 


         

 

 

 

 

 

 

 

 

COUNCIL’S VISION
Cabonne Council is committed to providing sustainable local government to our rural communities through consultation and sound financial management which will ensure equitable resource allocation.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


GENERAL MANAGER’S REPORT ON MATTERS FOR DETERMINATION SUBMITTED TO THE Extraordinary Council Meeting TO BE HELD ON Tuesday 21 April, 2015

Page 1

TABLE OF CONTENTS

 

 

 

ITEM 1      APPLICATIONS FOR LEAVE OF ABSENCE.................................. 2

ITEM 2      DECLARATIONS OF INTEREST....................................................... 2

ITEM 3      DECLARATIONS FOR POLITICAL DONATIONS.......................... 3

ITEM 4      FAMILY DAY CARE BUDGET IMPLICATIONS.............................. 3

ITEM 5      2015/16 BUDGET CONSIDERATION................................................ 5   

 

ANNEXURE ITEMS

 

ANNEXURE 4.1    Family Day Care Scheme Business Plan............ 7 

 


 

 

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.g - Code of Meeting Practice adopted and implemented.

Annexures

Nil   

File Number

\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS LEAVE OF ABSENCE - 637176

 

 

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.g - Code of Meeting Practice adopted and implemented.

Annexures

Nil   

File Number

\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS AND STAFF DECLARATION OF INTEREST - 2015 - 637177

 

 

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.g - Code of Meeting Practice adopted and implemented.

Annexures

Nil   

File Number

\OFFICIAL RECORDS LIBRARY\GOVERNANCE\COUNCIL MEETINGS\COUNCIL - COUNCILLORS DECLARATION OF POLITICAL DONATIONS - 637180

 

 

Recommendation

 

THAT any Political Donations be noted.

 

General Manager's REPORT

 

A call for declarations of any Political Donations.

 

 

ITEM 4 - FAMILY DAY CARE BUDGET IMPLICATIONS

REPORT IN BRIEF

 

Reason For Report

Possible changes to Family Day Care could have an impact on the 2015/16 budget.

Policy Implications

Nil

Budget Implications

Nil

IPR Linkage

3.1.1.e. Review financial sustainability of FDC, In Home (IH) and AS Care services

Annexures

1.  Family Day Care Scheme Business Plan    

File Number

\OFFICIAL RECORDS LIBRARY\COMMUNITY SERVICES\GRANTS AND FUNDING\FAMILY DAY CARE - 623593

 

 

Recommendation

 

THAT Council consider whether it wishes to subsidise the Family Day Care service if it is unsuccessful in obtaining operational funding.

 

Director of Finance and Corporate Services' REPORT

 

Council was advised at its September 2014 meeting that as a result of the Federal Budget there was a possibility that operational funding could be withdrawn from the service. Council resolved to assist in the development of a business plan to meet changing circumstances.

 

The Business Enterprise Centre has prepared a business plan for the Cabonne Blayney Family Day Care Scheme (copy attached) on the basis that Family Day Care is unsuccessful in obtaining funding. The 2013/14 financial statements were used as a basis for estimates.

 

The Cabonne Blayney Family Day Care Scheme provides services outside the Cabonne local government area (LGA), with educators in the Orange, Blayney, Bathurst and Parkes LGA’s.

 

The option of doing the figures for Cabonne only was examined and found that the scheme would have worsened financial outcome if funding was not obtained and the service only provided care in Cabonne. Currently fees and charges bring in $48,686.23 from Cabonne compared to $98,773.50 from other areas. This variation would be magnified under a higher fee structure. Because of this the Business Plan was prepared on the basis of covering all existing areas.

 

Applications for funding for the 2015/16 financial year for Family Day Care open in April 2015 and it is expected most Family Day Care Schemes will no longer receive Operational Funding. For Cabonne Blayney operational funding totalled $137,740.00 in the 2014 financial year. As there is a possibility that funding will not be received, a two tiered set of fees and charges have been prepared for public exhibition, on the basis of one set to be charged if funding is received and another to be charged if funding is not secured.

 

Under a higher structure of fees:-

 

·    The income from families in Cabonne will rise from $41,184.75 to $55,599.00 (an increase of $14,415.00) and from other areas from $98,773.50 to $133,344.00 (an increase of $34,571.00) bringing the total income from families to $188,943.25.

 

·    The income from educators is currently $18,271.98. Under a new structure based on a $2.50 charge per child per day this would increase the income from educators to $50,000.00pa. As with the income from parents the bulk of the extra income from educators will be sourced from outside of Cabonne.

 

The risk inherent in substantial increases in fees and charges is that some educators may choose to cease operations and some parents may re-examine the cost benefit of participating in the workforce or seek unlicensed care elsewhere. Some educators are already questioning the benefits of continuing providing this service under the increasingly tighter regulatory framework.

 

If funding is obtained there will not be such a need for onerous fees and charges and it is proposed that a lower set of fees be set in Council’s Fees and Charges as well with the proviso that one set will be implemented if funding is obtained and the other set used if funding is not obtained.

 

With cost cutting in terms of staff hours and reducing services provided, further savings of up to $40,723.00 could be made.

 

Despite the increased income and cost cutting if all the above was implemented there would still be a shortfall of $16,302.25 (less than the grant funding previously received). This could worsen should some carers cease operation or some families cease using the service.

 

Even under current funding levels the scheme has been operating at a deficit of around $35,000.00pa for several years covering this by withdrawing from accumulated funds which are now exhausted. This will be exacerbated by the closure of Family Links Service which has been contributing to the costs of occupying the Waluwin Centre (Cleaning and Electricity).

 

The 2015/16 budget has been prepared on the basis that funding will be received and council will need to determine whether it is willing to subsidise the service if funding is withdrawn, an estimated cost of $51,300.

 

ITEM 5 - 2015/16 BUDGET CONSIDERATION

REPORT IN BRIEF

 

Reason For Report

For Council to consider the draft budget.

Policy Implications

Nil

Budget Implications

Nil

IPR Linkage

4.5.5.g. Provide, maintain and develop financial services and systems to accepted standards - satisfying regulatory and customer requirements

Annexures

Nil   

File Number

\OFFICIAL RECORDS LIBRARY\FINANCIAL MANAGEMENT\BUDGETING\CABONNE COUNCIL ANNUAL BUDGET - 641052

 

 

Recommendation

 

THAT Council make any resolutions necessary as a result of the workshop.

 

Director of Finance and Corporate Services' REPORT

 

This extraordinary meeting is being held to enable any outcomes of the budget workshop to be actioned.

  


Item 4 Extraordinary Meeting 21 April 2015

Item 4 - Annexure 1

 

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