Ordinary Council

 

Business Paper

 

date of meeting:

 

Wednesday 21 February 2018

location:

 

Council Chambers

17 Burrawan Street

Port Macquarie

time:

 

5.30pm

 


Community Vision                                  A sustainable high quality of life for all

 

 

 

 

Community Mission                               Building the future together

                                                                  People Place Health Education Technology

 

 

 

 

Council’s Corporate Values                  é   Sustainability

                                                                  é   Excellence in Service Delivery

                                                                  é   Consultation and Communication

                                                                  é   Openness and Accountability

                                                                  é   Community Advocacy

 

 

 

 

Community Themes                               é  Leadership and Governance

                                                                  é  Your Community Life

                                                                  é  Your Business and Industry

                                                                  é  Your Natural and Built Environment

 


How Members of the Public Can Have Their Say at Council Meetings

Council has a commitment to providing members of the public with an input into Council's decision making.  The Council's Code of Meeting Practice provides two (2) avenues for members of the public to address Council on issues of interest or concern at the Ordinary Council Meeting.   These are:

·           Addressing Council on an Agenda Item (if the matter is listed in the Council Business Paper)

·           Addressing Council in the Public Forum (if the matter is not listed in the Council Business Paper)

 

You can request to address Council by completing the:

·           Request to Speak on an Agenda Item’ form

·           Request to Speak in the Public Forum’ form

 

These can be obtained from Council’s Offices at Laurieton, Port Macquarie and Wauchope or by downloading it from Council’s website.

 

Requests can also be lodged on-line at:

http://www.pmhc.nsw.gov.au/About-Us/How-Council-Works/Council-Committee-Meetings/Request-to-speak-on-an-Agenda-Item

 

http://www.pmhc.nsw.gov.au/About-Us/How-Council-Works/Council-and-Committee-Meetings/Request-to-speak-in-a-Public-Forum

 

Your request to address Council must be received by Council no later than 4:30pm on the day prior to the Council Meeting.

 

·           Council will permit no more than two (2) speakers ‘in support of’ and two (2) speakers ‘in opposition to’ the recommendation on any one (1) Agenda Item.

·           A maximum of five (5) speakers will be heard in the Public Forum.

·           There is no automatic right under legislation for the public to participate in a Meeting of Council or a Committee of Council.

·           For a member of the public to be considered to address Council they must agree to strictly adhere to all relevant adopted Council Codes, Policies and Procedures at all times.

·           Consideration of items for which requests to address the Council Meeting have been received will commence at 5:30pm.

·           When your name is called, please proceed to the Council Table and address Council.

·           Each speaker will be allocated a maximum of five (5) minutes to address Council. This time is strictly enforced.

·           Councillors may ask questions of a speaker following an address.  Each answer, by the speaker to a question, is limited to two (2) minutes.  A speaker cannot ask questions of Council.

·           An Agenda Item will be debated by Council following the address.

·           Council will not determine any matter raised in the Public Forum session, however Council may resolve to call for a future report.

·           If you have any documentation to support your presentation, provide two (2) copies to Council by 12 noon on the day of the Meeting.

·           If a speaker has an audio visual presentation, a copy of the presentation is to be provided to Council by 12 noon on the day of the Meeting.

·           The following will not be considered in the Public Forum (in accordance with the Code of Meeting Practice, clause 2.14.14):

-         Proposed or current development and rezoning applications and related matters.

-         A third (3rd) or subsequent application by a single member of the public to address Council on the same issue in the same calendar year. Council, at its discretion, may elect to exempt representatives or members of community groups from this restriction.

-         Any formal procurement process, contract negotiation or dispute resolution being undertaken.

-         Any matter the General Manager (or their delegate) considers inappropriate for discussion in the Public Forum.

·           Council accepts no responsibility for any defamatory statements made by speakers.

·           Members of the public may quietly enter and leave the Meeting at any time.

 


Ordinary Council Meeting

Wednesday 21 February 2018

 

Items of Business

 

Item       Subject                                                                                                      Page

 

 

01           Acknowledgement of Country............................................................................ 1

02           Local Government Prayer................................................................................... 1

03           Apologies......................................................................................................... 1

04           Confirmation of Minutes.................................................................................... 1

05           Disclosures of Interest..................................................................................... 25

06           Mayoral Minute

06.01..... Mayoral Discretionary Fund Allocations.............................................. 29

07           Confidential Correspondence to Ordinary Council Meeting................................. 30

08           Public Forum................................................................................................... 31

09           Leadership and Governance........................................................................... 32

09.01..... Joint Organisation of Mid North Coast Councils.................................. 33

09.02..... 2017 Local Government NSW Annual Conference................................ 47

09.03..... Invitation to Join Regional Cities NSW................................................ 52

09.04..... Status of Reports From Council Resolutions....................................... 56

09.05..... Disclosure of Interest Return.............................................................. 63

09.06..... Financial Sustainability of Council and an Update on the NSW Performance Measurement Framework................................................................... 65

09.07..... Council Financial Reserves Review..................................................... 72

09.08..... Financial Impact of Cost Shifting from Other Levels of Government..... 79

09.09..... Quarterly Budget Review Statement.................................................... 83

09.10..... Monthly Financial Review for January 2018......................................... 93

09.11..... Investments - December 2017............................................................ 99

09.12..... Investments - January 2018.............................................................. 109

09.13..... 2017-2018 Operational Plan - Quarterly Progress Report as at 31 December 2017....................................................................................................... 119

09.14..... Glasshouse Biannual Report and Update on Strategic Plan Recommendations 136

09.15..... Request to Name a Crown Reserve - Peach Grove, Laurieton............. 142

09.16..... Digital Technology Project Status..................................................... 145

09.17..... Development Activity and Assessment System Performance............. 150

09.18..... Sale of Closed Road Adjoining 112 Diamond Head Road, Dunbogan 154

10           Your Community Life................................................................................... 157

10.01..... Question From Previous Meeting - Public Art - Port Macquarie Town Square    158

10.02..... Recommended Items from the Mayor's Sporting Fund Sub-Committee - December 2017 ............................................................................................... 160

10.03..... Lake Cathie Foreshore Master Plan .................................................. 161

10.04..... Tastings on Hastings....................................................................... 170

11           Your Business and Industry

              Nil

12           Your Natural and Built Environment............................................................. 180

12.01..... DA2017 - 336.1 Boundary Adjustment Between Two Existing Torrens title lots, Residential Flat Building and Cafe with associated Strata title subdivision including Clause 4.6 objection to Clause 4.3 (Height of Buildings) of the Port Macquarie-Hastings Local Environmental Plan 201 - Lot 167 DP 1229250, Lot 229 DP 1235792 Seaside Drive And Surfers Drive,  Lake Cathie............................................... 181

12.02..... DA2017 - 455.1 Residential Subdivision (10 lots) Including Clause 4.6 Objection To Clause 4.1 (Minimum Lot Size) Of The Port Macquarie-Hastings Local Environmental Plan 2011 At Lot 65 DP1226839, Shore Break Crescent, Lake Cathie.. 185

12.03..... DA2017 - 641.1 Multi Dwelling Housing and Torrens Title Subdivision including Clause 4.6 objection to Clause 4.3 (Height of Buildings) and Clause 4.4 (Floor Space Ratio) of the Port Macquarie - Hastings Local Environmental Plan 2011 at Lots 228 & 229 DP 1235792, Surfers Drive, Lake Cathie.................................................. 208

12.04..... DA2017 - 712.1 Dwelling Including Clause 4.6 Variation To Clause 4.3 (Height Of Building) Of Port Macquarie-Hastings Local Environmental Plan 2011 - Lot 6 DP 1069338, No 22 The Anchorage Port Macquarie................................. 212

12.05..... DA2017 - 1063.1 Demolition Of Existing Dwelling  And Construction Of New Dwelling Including Clause 4.6 Variation To Clause 4.3 (Height Of Building) Of Port Macquarie-Hastings Local Environmental Plan 2011 - Lot 2 Section K DP25923, No 1512  Ocean Drive, Lake Cathie............................................................................ 215

12.06..... Planning Proposal - South Lindfield Urban Release Area - Post Exhibition Review of Submissions................................................................................... 218

12.07..... Planning Proposal - 2017 Administrative Review of Port Macquarie-Hastings LEP 2011....................................................................................................... 238

12.08..... Planning Proposal Administrative Review - Port Macquarie-Hastings LEP 2011 (Amendment No 29) - Consideration of Submissions......................... 246

12.09..... Rainbow Beach Central Corridor Planning Agreement 2017................. 257

12.10..... Gordon Street Car Parking Works in Kind Agreement......................... 260

12.11..... Open Space Contributions Plan ....................................................... 264

12.12..... Long Flat Village Sewer Scheme - Classification of Land recently acquired by Council....................................................................................................... 272

12.13..... Comboyne Village Sewerage Scheme - Acquisition of an Easement to Drain Sewage....................................................................................................... 274

12.14..... Lake Cathie Dredging - Rescuing Our Waterways Grant...................... 276

12.15..... Notice of Motion - Port Macquarie Flagstaff...................................... 279  

13           Questions for Next Meeting

14           Confidential Matters

Motion to move into Confidential Committee of the Whole............................... 280

14.01..... T-17-50 Digitisation of Micrographic Material

14.02..... T-17-53 Organisational Wide Customer Interactions Review

Adoption of Recommendations from Confidential Committee of the Whole

 


AGENDA                                                                                Ordinary Council      21/02/2018

Item:          01

Subject:     ACKNOWLEDGEMENT OF COUNTRY

 

"I acknowledge that we are gathered on Birpai Land. I pay respect to the Birpai Elders both past and present. I also extend that respect to all other Aboriginal and Torres Strait Islander people present."

 

 

Item:          02

Subject:     LOCAL GOVERNMENT PRAYER

 

A Minister from the Combined Churches of Port Macquarie will be invited to deliver the Local Government Prayer.

 

 

Item:          03

Subject:     APOLOGIES

 

RECOMMENDATION

That the apologies received be accepted.

 

 

Item:          04

Subject:     CONFIRMATION OF PREVIOUS MINUTES

Recommendation

That the Minutes of the Ordinary Council Meeting held on 13 December 2017 be confirmed.

 


MINUTES

Ordinary Council Meeting

                                                                                                                        13/12/2017

 

 

 

 

PRESENT

 

Members:

 

Councillor Peta Pinson (Mayor)

Councillor Lisa Intemann (Deputy Mayor)

Councillor Rob Turner

Councillor Michael Cusato

Councillor Sharon Griffiths

Councillor Peter Alley

Councillor Justin Levido

Councillor Geoff Hawkins

 

Other Attendees:

 

General Manager (Craig Swift-McNair)

Director of Corporate Performance (Rebecca Olsen)

Acting Director of Development and Environment (Dan Croft)

Acting Director of Infrastructure (Andrew Doig)

Director of Strategy and Growth (Jeffery Sharp)

Group Manager Governance and Procurement (Blair Hancock)

Governance Support Officer (Bronwyn Lyon)

Communications Manager (Andy Roberts)

 

 

 

The meeting opened at 5:30pm.

 

 

01       ACKNOWLEDGEMENT OF COUNTRY

The Mayor opened the Meeting with an Acknowledgement of Country and welcomed all in attendance in the Chamber.

 

02       LOCAL GOVERNMENT PRAYER

Pastor Mark Minturn, President of the Minister’s Association delivered the Local Government Prayer.

 

03       APOLOGIES

RESOLVED:  Turner/Cusato

That the apology received from Councillor Dixon be accepted.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

04       CONFIRMATION OF MINUTES

RESOLVED:  Levido/Griffiths

That the Minutes of the Ordinary Council Meeting held on 15 November 2017 be confirmed.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

05       DISCLOSURES OF INTEREST

 

Councillor Levido declared a Non-Pecuniary, Significant Interest in Item 12.09 - South Lindfield Urban Release Area - Advice of Changes and Re-exhibition, the reason being that Councillor Levido is a partner in the Port Macquarie law firm, Donovan Oates Hannaford Lawyers and acts for the owner of a property within the area being the subject of the report.

 

Councillor Alley declared a Non-Pecuniary, Less Than Significant Interest in Item 09.08 - Request to Attend Climate Leadership Conference - March 2018 - Councillor Peter Alley, the reason being that Councillor Alley is the subject of the report.

 

 

06.01  Mayoral Discretionary Fund Allocations

RESOLVED:  Pinson

 

That the Mayoral Discretionary Fund allocations for the period 2 November to 29 November 2017 inclusive be noted.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

 

07       CONFIDENTIAL CORRESPONDENCE TO ORDINARY COUNCIL MEETING

 

There are no confidential attachments to reports for the Ordinary Council Meeting.

 

 

08       PUBLIC FORUM

The Mayor advised of applications to address Council in the Public Forum from:

1.    Mr Paul Vernon-Roberts regarding the Lake Cathie Foreshore Master Plan.

2.    Ms Kath Gumbleton regarding a safer crossing on Lake Road for disabled and older people.

3.    Mrs Diane Gilbert regarding the Wauchope Pool.

 

RESOLVED: Turner/Griffiths

 

That the above requested to speak in the Public Forum be acceded to.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

08.01     Lake Cathie Foreshore Master Plan

Mr Paul Vernon-Roberts was unable to attend the meeting and nominated Ms Sue East to address Council on his behalf in relation to the Lake Cathie Foreshore Master Plan.

Ms Sue East addressed Council.

 

 

08.02     Safer Crossing on Lake Road for Disabled and Older People

Ms Kath Gumbleton addressed Council in relation to a safer crossing on Lake Road for disabled and older people and answered questions from Councillors.

 

 

08.01     Wauchope Pool

Mrs Diane Gilbert, representing the Wauchope Heated Indoor Pool Association, addressed Council in relation to the Wauchope Pool.

 

 

Requests to Speak on an Agenda Item

The Mayor advised of requests to speak on an agenda item, as follows:

Item 10.02 – Mr Michael Parsons in support of the recommendation.

Item 10.02 – Mr Lawrie Mckinna in support of the recommendation.

Item 10.04 – Mr Paul Dilley in support of the recommendation.

Item 10.04 – Mr Teale Bryan in support of the recommendation.

Item 12.04 – Mr Bob Knuckey in opposition of the proposed development.

Item 12.04 – Ms Michelle Love in support of the proposed development.

Item 12.04 – Mr Chris Stone in opposition of the proposed development.

Item 12.12 – Mr Anthony Hilkemeijer in support of the proposed development.

 

 

RESOLVED:  Griffiths/Turner

That the requests to speak on an agenda item be acceded to.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

Suspension of Standing Orders

 RESOLVED:  Griffiths/Alley

That Standing Orders be suspended to allow Items 10.02, 10.04, 12.04 and 12.12 to be brought forward and considered next.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

10.02  Thrumster Sports Fields Development

Mr Lawrie Mckinna, representing Newcastle Jets Football Cub, address Council in support of the recommendation.

Mr Michael Parsons, representing Football Mid North Coast, addressed Council in support of the recommendation and answered questions from Councillors.

 

RESOLVED:  Intemann/Pinson

 

That Council:

1.       Provide in-principle support for the development of a high performance football centre as part of the Thrumster Sports Fields facility.

 

2.       Develop detailed designs for the Thrumster Sports Field facility which meets the needs of Football Mid North Coast as well as cricket and community football use.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

10.04  Oxley Oval - Sporting Infrastructure Upgrades

Mr Paul Dilley, representing the Hastings Cricket Association, addressed Council in support of the recommendation.

Mr Teale Bryan, representing the Hastings Viking Rugby Club, addressed Council in support of the recommendation.

 

RESOLVED: Turner/Hawkins

 

That Council:

1.       Note the information contained in the Oxley Oval – Sporting Infrastructure Upgrades report.

2.       Allocate a budget of $300,000 toward provision of new sports amenities and upgrade of the incoming power supply.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

12.04  DA2015 - 913.1 Multi-Dwelling Housing (6 Dwellings) And Strata Title Subdivision - Lot 27 DP 1213714, No 20 Bluewren Close, Port Macquarie

Mr Bob Knuckey addressed Council in opposition of the proposed development and answered questions from Councillors.

Ms Michelle Love, Love Project Management, representing the applicant, addressed Council in support of the proposed development and answered questions from Councillors.

Mr Chris Stone addressed Council in opposition of the proposed development.

 

MOTION

MOTION:  Griffiths/Pinson

 

That DA2015 – 913.1 for a multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie, be determined by Council.

 

MOTION WITHDRAWN

 

MOTION

 

MOTION:  Cusato/Turner

 

That Council refer to the Development Assessment Panel DA2015 – 913.1 for multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie for determination.

equal:          4/4

For:   Alley, Cusato, Hawkins and Turner

Against:       Griffiths, Intemann, Levido and Pinson

 

CASTING VOTE:  AGAINST

 

MOTION LOST

 

MOTION

 

MOTION:  Cusato/Griffiths

That DA2015 – 913.1 for multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie, be determined by granting consent subject to the recommended conditions.

 

FORESHADOWED MOTION

 

MOVED:  Alley

 

That DA2015 – 913.1 for multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie, be determined by refusing consent for the following reasons:

1.         Overdevelopment of the site.

2.         Poor amenity in front setback area.

3.         Non-compliance with side and rear setbacks.

4.         Failure to retain significant koala food trees on the site.

5.         Out of character with the area in terms of intensity of development on the site.

6.         Insufficient technical details to address stormwater and landscaping.

 

THE MOTION WAS PUT

 

RESOLVED:  Cusato/Griffiths

That DA2015 – 913.1 for multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie, be determined by granting consent subject to the recommended conditions.

carried:      5/3

For:   Cusato, Griffiths, Hawkins, Intemann and Turner

Against:       Alley, Levido and Pinson

 

12.12  DA2017 - 437.1 - Demolition Of Existing Dwelling And Construction Of New Dwelling And Swimming Pool Including Clause 4.6 Objection To Clause 4.3 (Height Of Buildings) Of Port Macquarie-Hastings Local Environmental Plan 2011 - Lot 123 DP 31187, No 32 Bourne Street, Port Macquarie

Mr Anthony Hilkemeijer, applicant, addressed Council in support of the proposed development.

 

RESOLVED:  Intemann/Levido

That DA2017 – 437.1 for demolition of existing dwelling and construction of new dwelling and swimming pool including Clause 4.6 objection to Clause 4.3 (height of buildings) at Lot 123 DP 31187, No. 32 Bourne Street, Port Macquarie be determined by granting consent subject to the recommended conditions.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

09.01  2017 A.R. Bluett Award

RESOLVED:  Cusato/Griffiths

 

That Council note with pride that Port Macquarie-Hastings Council has been awarded the 2017 A.R. Bluett Award for Local Government as the most progressive Council in New South Wales.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

09.02  Status of Reports From Council Resolutions

RESOLVED:  Intemann/Cusato

 

That Council note the information in the Status of Reports from Council Resolutions report.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

09.03  Disclosure of Interest Return

RESOLVED:  Griffiths/Turner

That Council note the Disclosure of Interest returns for:

1.       New member of the Town Centre Master Plan Sub-Committee.

2.       Group Manager Environmental Services.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

09.04  Council Policy - Policy Review - Post Exhibition - Naming and Renaming of Roads and Reserves

RESOLVED:  Levido/Alley

 

That Council adopt the:

1.       Naming and Renaming of Reserves Policy.

2.       Naming and Renaming of Roads Policy.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

09.05  Monthly Financial Review for November 2017

RESOLVED:  Hawkins/Griffiths

 

That Council adopt the adjustments in the “Financial and Economic Implications” section of the Monthly Financial Review Report for November 2017.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

09.06  Investments - November 2017

RESOLVED:  Levido/Cusato

 

That Council note the Investment Report for the month of November 2017.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

09.07  Payment of Water Fund and Sewer Fund Dividend for the Year 2016-2017

RESOLVED:  Hawkins/Intemann

 

That Council:

1.       Note the achievement of substantial compliance with each of the six best practice guidelines (NSW Best Practice Management Guidelines for Water Supply and Sewerage, August 2007) of:

(a)     Strategic Business Planning

(b)     Pricing

(c)     Water Conservation

(d)     Performance Reporting

(e)     Integrated Water Cycle Management

2.       Authorise the application to the NSW Government for approval to pay a dividend of $896,454 to the General Fund from the surplus in Water Supply operations for the 2016-2017 financial year.

3.       Authorise the payment of $99,606 for tax equivalents to the general fund from the Water Supply operations for the 2016-2017 financial year.

4.       Authorise the application to the NSW Government for approval to pay a dividend of $836,433 to the General Fund from the surplus in the Sewerage Fund for the 2016-2017 financial year.

5.       Authorise the payment of $92,937 for tax equivalents to the general fund from the Sewerage Fund for the 2016-2017 financial year.

6.       Determine that if successful in its applications that the dividend will be quarantined for stormwater related works.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

09.08  Request to Attend Climate Leadership Conference - March 2018 - Councillor Peter Alley

Councillor Alley declared a Non-Pecuniary, Less Than Significant Interest in this matter and remained in the room during the Council's consideration.

 

RESOLVED:  Hawkins/Intemann

 

That Council:

1.         Approve the attendance of Councillor Peter Alley at the Climate Leadership Conference to be held in Sydney from 15 to 16 March 2018.

2.             Request that within one month of Councillor Alley’s attendance at the Climate Leadership Conference, a report be tabled at an Ordinary Meeting of Council regarding reasons for attending the conference, the outcomes of the conference, the agenda of the conference and any areas of interest specific to Port Macquarie-Hastings Council discussed at the conference.

carried:      6/2

For:   Alley, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Cusato and Griffiths

 

 

09.09  Property Investment Policy - Consideration of Submissions

RESOLVED:  Hawkins/Cusato

 

That Council:

1.         Note the submissions to the Draft Property Investment Policy as discussed in this report.

2.         Amend the Draft Investment Policy by replacing the 4th paragraph under Clause 2 of the policy with the following:

“To implement this Policy, Council will establish and manage a Property Investment Portfolio, comprising strategic property assets that meet the above criteria. Through the relevant Director, the Group Manager, Assets & Property Investment will regularly review and report to Council on the performance of the Property Investment Portfolio and make recommendations regarding the portfolio, on a minimum six monthly basis."

3.         Adopt the Property Investment Policy as amended in point 2 above.

4.         Note that no decision to buy, develop or dispose of a property will be made without a report being tabled at a formal meeting of Council for consideration.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

10.01  Closure of Part of an Unnamed Road at Settlement Point

RESOLVED:  Intemann/Alley

 

That Council:

1.       Make application to the Department of Industry – Lands for the closure of an area of 17 metres x 20 metres of the unformed and unnamed Council road that bisects the Settlement Point Reserve.

2.       Request the Department of Industry – Lands vest the closed road in Council as “operational” land.

3.       Pursuant to Section 377 of the Local Government Act 1993, delegate authority to the General Manager to sign the:

a)      Road closing application to be lodged with the Department of Industry – Lands;

b)      Survey plan of road closure/first title creation;

c)      Land Registry Services Request Form for issue of certificate of title for the closed road.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

Item - 10.02 Thrumster Sports Fields Development - has been moved to another part of the document.

 

 

10.03  Wauchope Sports Fields - Project Update

RESOLVED:  Intemann/Turner

 

That Council note the information contained within the Wauchope Sports Fields – Project Update Report.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

Item - 10.04 Oxley Oval - Sporting Infrastructure Upgrades - has been moved to another part of the document.

 

 

10.05  Cultural Plan 2016-2019:  Progress Report

RESOLVED:  Turner/Hawkins

That Council note the:

1.       Information in the Port Macquarie-Hastings Council Cultural Plan 2016-2019 progress report.

2.       Progress to date of the review of the 2016-2019 Cultural Plan by the Cultural Steering Group.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

10.06  Bicentenary Activities - Options for Involvement & Resources

Councillor Cusato left the meeting, the time being 8:28pm.

Councillor Cusato returned to the meeting, the time being 8:29pm.

 

RESOLVED:  Turner/Hawkins

 

That Council:

1.         Provide in principle support to projects that mark the 2018 John Oxley Bicentenary.

2.         Set up a Bicentenary Working Group of the Cultural Steering Group (BWG) to assist with the strategy, the organisation and the implementation of the Bicentenary program.

3.         Enable the ad hoc participation of suitably qualified persons (relevant experience and expertise) onto the BWG.

4.         Request the BWG provides regular reporting to Council through updates via the Cultural Steering Group.

5.         Workshop alternative wording for the draft Bicentenary logo with the BWG.

6.         Establish a new line item in both the 2017/18 and 2018/19 Operational Plans – Bicentenary Activities.

7.         Re-allocate GL 41433 ‘WW1 and ANZAC Commemoration’ with a current budget of $43,856 to ‘Bicentenary Activities’.

8.         Transfer $80,000 from the Cultural reserve to Bicentenary Activities.

9.         Approve a dedicated Bicentenary Grants stream from the current Community Grant budget.

10.      Note that the John Oxley Memorial previously located at Town Beach is currently being rejuvenated for the John Oxley Bicentenary, and once complete, will be relocated in early 2018 to a new site in the vicinity that has significantly better pedestrian access.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

10.07  Question from Previous Meeting - Community Projects

RESOLVED:  Griffiths/Intemann

 

That Council:

1.         Note the information contained in the Community Projects report.

2.         Request the General Manager provide a briefing in March 2018 to Councillors on the potential to develop a sporting/community reference group.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

10.08  Recommended Items from the Mayor's Sporting Fund Sub-Committee - November 2017 Meeting

RESOLVED:  Pinson/Cusato

That Council, pursuant to the provisions of Section 356 of the Local Government Act 1993, grant financial assistance from the Mayor’s Sporting Fund as follows:

1.       Dylan D Domizio be granted the amount of $350.00 to assist with the expenses he would have incurred travelling to and competing at the Australian All Schools Athletics Championships being held in Adelaide from 1 – 10 December 2017.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

11.01  Notice of Motion - Markets in Port Macquarie-Hastings Local Government Area

RESOLVED:  Turner/Griffiths

 

That Council request the General Manager develop and table a policy for the approval of markets in the LGA at the April 2018 Council Meeting. The policy should include:

1.       A mechanism (with appropriate criteria) for controlling the locations and scheduling of markets in the Port Macquarie CBD and other potentially sensitive locations where significant concentrations of retailers exist and compete.

2.       A distinction between “occasional” markets associated with one-off, or annual, events compared to markets operating regularly more than four times per year.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

12.01  Question From Previous Meeting - Wall Reserve Car Park, North Haven

RESOLVED:  Pinson/Griffiths

That Council:

1.       Note the information contained within the report regarding the potential to seal the access road and car park of Wall Reserve.

2.       Give consideration to Option 3 to funding these works in the development of the 2018/19 Operational Plan and Budget.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

12.02  Question From Previous Meeting - Old Pacific Highway, Dennis Bridge, Wilson River Bridge

RESOLVED:  Cusato/Turner

 

That Council note the information relating to the handover of assets including the Dennis and Wilson River Bridges following the opening of the Pacific Highway upgrade between the Oxley Highway and Kundabung.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

12.03  Question From Previous Meeting - Feral Deer

RESOLVED:  Cusato/Intemann

 

That Council:

1.         Note the information contained in the report.

2.         Request the General Manager write to the following people outlining the excessive population growth of wild deer in the Port Macquarie-Hastings local government area and requesting that appropriate funding be allocated to the relevant State government departments and Local Land Services North Coast for investigations into the wild deer population and the ongoing culling programs required to gain control over the deer population:

a)         The Hon. Niall Blair, MLC, Minister for Primary Industries;

b)         The Hon. Paul Toole, MP, Minister for Lands and Forestry;

c)         The Hon. Gabrielle Upton, MP, Minister for the Environment;

d)         The Hon. Melinda Pavey, MP, Member for Oxley, Minister for Roads, Maritime and Freight;

e)         The Hon. Leslie Williams, MP, Member for Port Macquarie, Parliamentary Secretary for Regional & Rural Health.

f)          The Hon. Mick Veitch, Shadow Minister for Primary Industries, and Shadow Minister for Lands.

3.         Request the General Manager provide a briefing to Councillors in the first quarter of calendar year 2018, outlining the actions required within the current Hastings Wild Deer Management Strategy for reducing wild deer numbers.

4.         Request the General Manager write to The Hon. Niall Blair, MLC, Minister for Primary Industries, requesting that Local Land Services North Coast undertake a review of the Hastings Wild Deer Management Strategy during 2018.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

Item - 12.04 DA2015 - 913.1 Multi-Dwelling Housing (6 Dwellings) And Strata Title Subdivision - Lot 27 DP 1213714, No 20 Bluewren Close, Port Macquarie - has been moved to another part of the document.

 

 

12.05  Draft Coastal Walk Master Plan - Results of Community Engagement

RESOLVED:  Pinson/Cusato

 

That Council:

1.       Note the information contained within the Draft Coastal Walk Master Plan – Results of Community Engagement Report.

2.       Adopt the Coastal Walk Master Plan as presented for implementation.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

12.06  Biodiversity Strategy

RESOLVED:  Alley/Turner

 

That Council:

1.       Place on public exhibition the draft Biodiversity Strategy commencing from 20 December 2017, for a minimum of 70 days.

2.       Note that a further report is planned to be tabled at the April 2018 meeting of Council, detailing the submissions received from the public during the exhibition period.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

12.07  Draft Koala Recovery Strategy and Coastal Koala Plan of Management

RESOLVED:  Intemann/Pinson

 

That Council:

1.         Forward the attached draft Coastal Koala Plan of Management to the NSW Department of Planning and Environment for review in accordance with the relevant guidelines.

2.         Following endorsement of the draft Coastal Koala Plan of Management by the Department of Planning and Environment, place on public exhibition both the draft Coastal Koala Plan of Management and the draft Koala Recovery Strategy for a minimum period of 42 days.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

12.08  Thrumster Local Orders Policy

RESOLVED:  Levido/Turner

 

That Council:

1.       Adopt the Local Orders Policy to Restrict the Keeping of Dogs at Thrumster, as publicly exhibited, in accordance with section 161 of the Local Government Act 1993.

2.       Request the General Manager make representations to the Minister for Planning and Environment regarding the need for alternate provisions to the Local Orders Policy to restrict and manage dog ownership in areas of Core Koala Habitat.

3.       Review the Thrumster (Area 13) Koala Plan of Management in the context of the proposed Koala Strategy and Comprehensive Koala Plan of Management for Port Macquarie-Hastings, prior to the next review of the Local Orders Policy.

carried:      5/3

For:   Alley, Hawkins, Intemann, Levido and Turner

Against:       Cusato, Griffiths and Pinson

 

 

12.09  South Lindfield Urban Release Area - Advice of Changes and Re-exhibition

Councillor Levido declared a Non-Pecuniary, Significant Interest in this matter and left the room and was out of sight during the Council's consideration,  the time being 9:16pm.

 

RESOLVED:  Cusato/Griffiths

 

That Council note:

1.       The re-exhibition of the South Lindfield Urban Release Area from 13 December 2017, for a minimum of 42 days.

2.       That a further report is planned to be tabled at the February 2018 meeting of Council, detailing the submissions received from the public during the exhibition period.

carried:      7/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Pinson and Turner

Against:       Nil

 

Councillor Levido returned to the meeting, the time being 09:18pm.

 

 

12.10  Wayfinding Signage Strategy

Councillor Alley left the meeting, the time being 09:18pm.

 

MOTION:  Turner/Cusato

 

That Council note the recent development of a Port Macquarie-Hastings Wayfinding Signage Strategy for implementation.

carried:      7/0

For:   Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

12.11  Notice of Motion - Stormwater Strategy

Councillor Alley returned to the meeting, the time being 09:22pm.

 

RESOLVED:  Intemann/Levido

 

That in view of the potential for water and sewer dividend funds being directed to stormwater projects, Council request the General Manager to develop a strategy for stormwater works for future years, working with the Water, Stormwater, Sewer & Waste Councillor Portfolio, with a report to be tabled at the June 2018 Council meeting detailing the proposed strategy.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

Item - 12.12 DA2017 - 437.1 - Demolition Of Existing Dwelling And Construction Of New Dwelling And Swimming Pool Including Clause 4.6 Objection To Clause 4.3 (Height Of Buildings) Of Port Macquarie-Hastings Local Environmental Plan 2011 - Lot 123 DP 31187, No 32 - has been moved to another part of the document.

 


 

 

13       QUESTIONS FOR NEXT MEETING

 

 

 

13.01     Car Parking - Residential Developments

Question from Councillor Levido:

 

Could the General Manager arrange a briefing for Councillors early in 2018 dealing with the following issues:

1.         Council’s off street car parking requirements for medium and high density residential developments in residential zones within the Port Macquarie-Hastings Local Government Area;

2.         Whether the current “Zone R1 – General Residential Zone” pursuant to Port Macquarie-Hastings Local Environmental Plan 2011 is practically suitable to established low density residential areas/precincts within the Port Macquarie-Hastings Local Government Area or whether the “Zone R2 – Low Density Residential Zone” is more suitable and the process involved in changing the zoning accordingly; and

3.         Whether any other Council/planning authority in NSW has investigated enforceable requirements as to car parking spaces (whether in a garage or in the open) for residential dwellings and residential complexes being available only for car parking purposes and not for general storage or the standing of generally sedentary items, such as boats/trailers/caravans?

 

Comments by Councillor (if provided):

 

Nil.

 

 

13.02     Public Art - Port Macquarie Town Square

Question from Councillor Turner:

 

Could the General Manager please advise Council whether there is any public art planned for the Port Macquarie Town Square?

 

Comments by Councillor (if provided):

Nil.

 

CONFIDENTIAL COMMITTEE OF THE WHOLE

RESOLVED:  Levido/Griffiths

1.         That pursuant to section 10A subsections 2 & 3 and 10B of the Local Government Act 1993 (as amended), the press and public be excluded from the proceedings of the Council in Confidential Committee of the Whole (Closed Session) on the basis that items to be considered are of a confidential nature.

2.         That Council move into Confidential Committee of the Whole (Closed Session) to receive and consider the following items:

Item 14.01       T-17-19 Provision of Graphic Design Services

This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

Item 14.02       T-17-51 Beechwood Road Upgrade - Stage 5 and 6

This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

Item 14.03       T-17-54 Construction of Hastings River Drive and Newport Island Road Roundabout

This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

Item 14.04       T-17-59 Supply and Delivery of Tractors

This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

3.         That the resolutions made by the Council in Confidential Committee of the Whole (Closed Session) be made public as soon as practicable after the conclusion of the Closed Session and such resolutions be recorded in the Minutes of the Council Meeting.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

Adjourn meeting

The Ordinary Council Meeting adjourned at 9:26pm.

 

 

Resume meeting

The Ordinary Council Meeting resumed at 9:28pm.

 

 

ADOPTION OF RECOMMENDATIONS FROM THE CONFIDENTIAL COMMITTEE OF THE WHOLE

RESOLVED:  Levido/Griffiths

That the undermentioned recommendations from Confidential Committee of the Whole (Closed Session) be adopted:

Item 14.01       T-17-19 Provision of Graphic Design Services

                        This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

                        RECOMMENDATION

That Council:

1.       Accept the tenders from the following suppliers to be appointed to a panel for the provision of Graphic Design Services for a term of three (3) years commencing 1 January 2018 with two (2) options to extend for a further one (1) year, (such option to be for the benefit of the Council and may be exercised only by the Council in its sole discretion):

a)      Beyond the Hedge;

b)      BJ & EJ Creighton t/as AreCreative;

c)      Evolution Graphic Designs t/as Two Minds Creative;

d)      Handsome Creative Pty Ltd t/as Handsome Creative;

e)      Juzvolter Graphic Design Studio t/as Division of Barrier Signs Pty Ltd &;

f)       Simple Integrated Marketing Pty Ltd t/as Simple Integrated Marketing.

2.       Accept the Schedule of Rates for the provision of Graphic Design Services from:

a)      Beyond the Hedge;

b)      BJ & EJ Creighton t/as AreCreative;

c)      Evolution Graphic Designs t/as Two Minds Creative;

d)      Handsome Creative Pty Ltd t/as Handsome Creative;

e)      Juzvolter Graphic Design Studio t/as Division of Barrier Signs Pty Ltd;

f)       Simple Integrated marketing Pty Ltd t/as Simple Integrated Marketing.

3.       Affix the seal of Council to the necessary documents.

4.       Maintain the confidentiality of the documents and considerations in respect of tender T-17-19.

 

 

Item 14.02       T-17-51 Beechwood Road Upgrade - Stage 5 and 6

                        This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

                        RECOMMENDATION

That Council:

1.       Accept the tender from SMEC Australia Pty Ltd for $323,176 (exclusive of GST) for the design and preconstruction services for the Beechwood Road Upgrade – Stage 5 and 6.

2.       Accept the Schedule of Rates from SMEC Australia Pty Ltd for the design and preconstruction services for the Beechwood Road Upgrade – Stage 5 and 6.

3.       Affix the seal of Council to the necessary documents.

4.       Maintain the confidentiality of the documents and considerations in respect of Tender T-17-51.

 

Item 14.03       T-17-54 Construction of Hastings River Drive and Newport Island Road Roundabout

                        This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

                        RECOMMENDATION

That Council:

1.       Accept the tender from Ditchfield Contracting Pty Ltd for $2,072,104.00 (exclusive of GST) for the construction of Hastings River Drive and Newport Island Road Roundabout.

2.       Accept the Schedule of Rates from Ditchfield Contracting Pty Ltd for the construction of Hastings River Drive and Newport Island Road Roundabout.

3.       Affix the seal of Council to the necessary documents.

4.       Maintain the confidentiality of the documents and considerations in respect of Tender T-17-54.

 

Item 14.04       T-17-59 Supply and Delivery of Tractors

                        This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

                        RECOMMENDATION

That Council:

1.       Accept the quotation (Part A), through Local Government Procurement, from Chesterfield Australia Pty Ltd, for the purchase of an approximate 100hp (75kw) 4WD tractor with a 4 in 1 Frontend Bucket and accessories $93,664 (excl GST).

 

2.       Accept the quotation (Part B), through Local Government Procurement, from Chesterfield Australia Pty Ltd, for the purchase of three (3) approximate 65hp (48kw) 4WD tractors (Part B) and accessories $170,391 (excl GST).

3.       Affix the seal of Council to the necessary documents.

4.       Maintain the confidentiality of the documents and considerations in respect of Tender T-17-59.

 

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

 

 

The meeting closed at 9:29pm.

 

 

 

 

 

 

………………………………………..

Peta Pinson

Mayor

 

   


AGENDA                                                                                Ordinary Council      21/02/2018

Item:          05

Subject:     DISCLOSURES OF INTEREST

 

RECOMMENDATION

 

That Disclosures of Interest be presented

 

DISCLOSURE OF INTEREST DECLARATION

 

 

Name of Meeting:     ………………………………………………………………………..

 

Meeting Date:           ………………………………………………………………………..

 

Item Number:            ………………………………………………………………………..

 

Subject:                      ………………………………………………………………………..

                                    …………………………………………………….……………...…..

 

 

I, ..................................................................................... declare the following interest:

 

 

        Pecuniary:

              Take no part in the consideration and voting and be out of sight of the meeting.

 

 

        Non-Pecuniary - Significant Interest:

              Take no part in the consideration and voting and be out of sight of the meeting.

 

        Non-Pecuniary - Less than Significant Interest:

              May participate in consideration and voting.

 

 

For the reason that:  ....................................................................................................

 

.......................................................................................................................................

 

Name:  …………………………………………………….

 

Signed:  .........................................................................  Date:  ..................................

 

 

Growth Bar b&w(Further explanation is provided on the next page)


 

Further Explanation

(Local Government Act and Code of Conduct)

 

A conflict of interest exists where a reasonable and informed person would perceive that a Council official could be influenced by a private interest when carrying out their public duty. Interests can be of two types: pecuniary or non-pecuniary.

 

All interests, whether pecuniary or non-pecuniary are required to be fully disclosed and in writing.

 

Pecuniary Interest

 

A pecuniary interest is an interest that a Council official has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the Council official. (section 442)

 

A Council official will also be taken to have a pecuniary interest in a matter if that Council official’s spouse or de facto partner or a relative of the Council official or a partner or employer of the Council official, or a company or other body of which the Council official, or a nominee, partner or employer of the Council official is a member, has a pecuniary interest in the matter. (section 443)

 

The Council official must not take part in the consideration or voting on the matter and leave and be out of sight of the meeting.  The Council official must not be present at, or  in sight of, the meeting of the Council at any time during which the matter is being considered or discussed, or at any time during which the council is voting on any question in relation to the matter.  (section 451)

 

Non-Pecuniary

 

A non-pecuniary interest is an interest that is private or personal that the Council official has that does not amount to a pecuniary interest as defined in the Act.

 

Non-pecuniary interests commonly arise out of family, or personal relationships, or involvement in sporting, social or other cultural groups and associations and may include an interest of a financial nature.

 

The political views of a Councillor do not constitute a private interest.

 

The management of a non-pecuniary interest will depend on whether or not it is significant.

 

Non Pecuniary – Significant Interest

As a general rule, a non-pecuniary conflict of interest will be significant where a matter does not raise a pecuniary interest, but it involves:

(a)   A relationship between a Council official and another person that is particularly close, for example, parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the Council official or of the Council official’s spouse, current or former spouse or partner, de facto or other person living in the same household.

(b)   Other relationships that are particularly close, such as friendships and business relationships. Closeness is defined by the nature of the friendship or business relationship, the frequency of contact and the duration of the friendship or relationship.

(c)   An affiliation between a Council official an organisation, sporting body, club, corporation or association that is particularly strong.

 

If a Council official declares a non-pecuniary significant interest it must be managed in one of two ways:

1.     Remove the source of the conflict, by relinquishing or divesting the interest that creates the conflict, or reallocating the conflicting duties to another Council official.

2.     Have no involvement in the matter, by taking no part in the consideration or voting on the matter and leave and be out of sight of the meeting, as if the provisions in section 451(2) apply.

 

Non Pecuniary – Less than Significant Interest

If a Council official has declared a non-pecuniary less than significant interest and it does not require further action, they must provide an explanation of why they consider that the conflict does not require further action in the circumstances.

SPECIAL DISCLOSURE OF PECUNIARY INTEREST DECLARATION

 

 

By

[insert full name of councillor]

 

 

In the matter of

[insert name of environmental planning instrument]

 

 

Which is to be considered at a meeting of the

[insert name of meeting]

 

 

Held on

[insert date of meeting]

 

 

PECUNIARY INTEREST

 

 

Address of land in which councillor or an  associated person, company or body has a proprietary interest (the identified land)i

 

 

Relationship of identified land to councillor

[Tick or cross one box.]

 

Councillor has interest in the land (e.g. is owner or has other interest arising out of a mortgage, lease trust, option or contract, or otherwise).

 

Associated person of councillor has interest in the land.

 

Associated company or body of councillor has interest in the land.

 

MATTER GIVING RISE TO PECUNIARY INTEREST

 

 

Nature of land that is subject to a change

in zone/planning control by proposed

LEP (the subject land iii

[Tick or cross one box]

 

The identified land.

 

Land that adjoins or is adjacent to or is in proximity to the identified land.

Current zone/planning control

[Insert name of current planning instrument and identify relevant zone/planning control applying to the subject land]

 

Proposed change of zone/planning control

[Insert name of proposed LEP and identify proposed change of zone/planning control applying to the subject land]

 

Effect of proposed change of zone/planning control on councillor

[Tick or cross one box]

 

Appreciable financial gain.

 

Appreciable financial loss.

 

 

 

Councillor’s Name:  …………………………………………

 

Councillor’s Signature:  ……………………………….   Date:  ………………..


 

 

Important Information

 

This information is being collected for the purpose of making a special disclosure of pecuniary interests under sections 451 (4) and (5) of the Local Government Act 1993.  You must not make a special disclosure that you know or ought reasonably to know is false or misleading in a material particular.  Complaints made about contraventions of these requirements may be referred by the Director-General to the Local Government Pecuniary Interest and Disciplinary Tribunal.

 

This form must be completed by you before the commencement of the council or council committee meeting in respect of which the special disclosure is being made.   The completed form must be tabled at the meeting.  Everyone is entitled to inspect it.  The special disclosure must be recorded in the minutes of the meeting.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

i.   Section 443 (1) of the Local Government Act 1993 provides that you may have a pecuniary interest in a matter because of the pecuniary interest of your spouse or your de facto partner or your relativeiv or because your business partner or employer has a pecuniary interest. You may also have a pecuniary interest in a matter because you, your nominee, your business partner or your employer is a member of a company or other body that has a pecuniary interest in the matter.

ii.  Section 442 of the Local Government Act 1993 provides that a pecuniary interest is an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person. A person does not have a pecuniary interest in a matter if the interest is so remote or insignificant that it could not reasonably be regarded as likely to influence any decision the person might make in relation to the matter or if the interest is of a kind specified in section 448 of that Act (for example, an interest as an elector or as a ratepayer or person liable to pay a charge).

iii.   A pecuniary interest may arise by way of a change of permissible use of land adjoining, adjacent to or in proximity to land in which a councillor or a person, company or body referred to in section 443 (1) (b) or (c) of the Local Government Act 1993 has a proprietary interest..

iv.   Relative is defined by the Local Government Act 1993 as meaning your, your spouse’s or your de facto partner’s parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child and the spouse or de facto partner of any of those persons.


AGENDA                                                                                Ordinary Council      21/02/2018

 

 

Item:          06.01

 

Subject:     MAyORAL Minute - Mayoral Discretionary Fund Allocations

Mayor, Peta Pinson

 

 

 

 

 

RECOMMENDATION

 

That the Mayoral Discretionary Fund allocations for the period 30 November 2017 to 7 February 2018 inclusive be noted.

 

Discussion

 

Mayoral Discretionary Fund Allocations

 

The Mayor made the following allocations from the Mayoral Discretionary Fund for the period 30 November 2017 to 7 February 2018 inclusive:

 

Purchase of Image from Health Link Exhibition

$150.00

Donation of Glasshouse Vouchers to Camden Haven PAH&I Society Twilight Festival Fundraiser

$200.00

Donation of Glasshouse Vouchers to Hastings Business Women’s Network Fundraiser for PMQ-Hastings Domestic & Family Violence Specialist Service

$200.00

Donation of Glasshouse Vouchers to Fundraiser for Grant Cowell

$200.00

Floral Bouquet for the funeral of the late Daphne Johnston OAM

$60.00

Floral Wreath for National Servicemen’s Day Service on 15/02/18

$60.00

 

$870.00

 

Attachments

 

Nil

  

 


AGENDA                                                                                Ordinary Council      21/02/2018

Item:          07

Subject:     CONFIDENTIAL CORRESPONDENCE TO ORDINARY COUNCIL MEETING

Presented by: General Manager, Craig Swift-McNair

Alignment with Delivery Program

1.3.2   Build trust and improve Council’s public reputation through transparency, good decision making and living Council’s Values.

 

RECOMMENDATION

That Council determine that the attachment to Item Numbers 09.09 and 10.04 be considered as confidential, in accordance with Section 11(3) of the Local Government Act.

Discussion

The following confidential attachments have been submitted to the Ordinary Council Meeting:

 

Item No:                                 09.09   

Subject:                                 Quarterly Budget Review Statement

Attachment Description:     2017-2018 December Quarterly Budget Review Statement - Consultancy Engagements

Confidential Reason:           Relates to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business (Local Government Act 1993 - Section 10A(2)(c)).

 

Item No:                                 10.04

Subject:                                 Tastings on Hastings

Attachment Description:     Tastings On Hastings 2017 - 3 year Budget Comparison

Confidential Reason:           Relates to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business (Local Government Act 1993 - Section 10A(2)(c)).

 

 


AGENDA                                                                                Ordinary Council      21/02/2018

Item:          08

Subject:     PUBLIC FORUM

 

Residents are able to address Council in the Public Forum of the Ordinary Council Meeting on any Council-related matter not listed on the agenda.

A maximum of five speakers can address any one Council Meeting Public Forum and each speaker will be given a maximum of five minutes to address Council. Council may wish to ask questions following an address, but a speaker cannot ask questions of Council.

Once an address in the Public Forum has been completed, the speaker is free to leave the chambers quietly.

If you wish to address Council in the Public Forum, you must apply to address that meeting no later than 4.30pm on the day prior to the meeting by completing the 'Request to Speak in Public Forum at Ordinary Council Meeting Form'.  This form is available at Council's offices or online at www.pmhc.nsw.gov.au.

 

 

 

  


AGENDA                                                                                         Ordinary Council

21/02/2018









 

 

What we are trying to achieve

A community that works together in decision making that is defined as ethically, socially and environmentally responsible.

What the result will be

 

We will have:

              A community that has the opportunity to be involved in decision making

              Open, easy, meaningful, regular and diverse communication between the community and decision makers

              Partnerships and collaborative projects, that meet the community’s expectations, needs and challenges

              Knowledgeable, skilled and connected community leaders

              Strong corporate management that is transparent

 

How we will get there

 

1.1          Inform and engage with the community about what Council does using varied communication channels

1.2          Maintain strong partnerships between all stakeholders - local, state and federal — so that they are affective advocates for the community

1.3          Demonstrate leadership

1.4          Use innovative, efficient and sustainable practices

1.5          Ensure strong corporate and financial management that is transparent and accountable

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.01

 

Subject:     Joint Organisation of Mid North Coast Councils

Presented by:  General Manager, Craig Swift-McNair

 

 

Alignment with Delivery Program

 

1.2.1 Promote Council participation and build linkages in local, state and federal initiatives, forums and opportunities to support Council’s continued planning for the growth of the region.

 

 

 

RECOMMENDATION

 

In accordance with Part 7 of Chapter 12 of the Local Government Act 1993 (Act), Port Macquarie-Hastings Council (Council) resolves:

1.       That the Council inform the Minister for Local Government (Minister) of the Council’s endorsement of the Minister recommending to the Governor the establishment of a Joint Organisation in accordance with this resolution.

2.       To approve the inclusion of the Port Macquarie-Hastings Council’s area in the Joint Organisation’s area.

3.       That the Joint Organisation be established to cover the Council’s area and any one or more of the following Council areas:

-  Kempsey Shire Council;

-  Nambucca Shire Council;

-  Bellingen Shire Council;

-  Coffs Harbour City Council;

-  Clarence Valley Council.

4.       That, on the expiry of a period of 28 days from the making of this resolution, the General Manager provide the Minister:

a)      With a copy of this resolution including the date on which Council made this resolution; and

b)      Inform the Minister that this resolution has not been rescinded for the purpose of the Minister issuing a certificate under section 400P of the Act.

 

Executive Summary

 

The Local Government Amendment (Regional Joint Organisation) Act 2017 (Act) commenced on 15 December 2017. A copy of the legislation is attached to this report for information. As per information provided by the Office of Local Government (OLG), this legislation allows for Councils to voluntarily join new Joint Organisations (JOs) to strengthen regional coordination and improve the delivery of important infrastructure and services for communities through strategic planning, collaboration, shared leadership and advocacy.

 

As detailed in a letter from the OLG to the General Manager dated 20 December 2017 (copy attached), Council must now give consideration to joining a JO and as such, a Council resolution to reflect this is a critical part of the process, hence this report to Council.

 

The OLG has stated that it is important that Council resolutions align for groups of Councils that wish to form a JO and that Councils provide the Minister for Local Government (Minister) with a copy of this resolution by 28 February 2018. This allows time to undertake the required processes in order to have JOs in operation by July 2018. To this end, the OLG has provided a draft resolution for Councils to consider, which is reflected in the recommendation included in this report.

 

The purpose of this report is to detail information relating to the establishment and operation of a JO for the Mid North Coast Councils.

 

Discussion

 

In August 2011, a forum entitled Destination 2036 was held at Dubbo and was attended by the then NSW Minister for Local Government, Mayors and General Managers of most Councils in NSW and other sector stakeholders. Following this forum, the NSW Government established a Ministerial Advisory Group (LGNSW, Unions and Minister’s representatives) and some-time later appointed the Independent Local Government Review Panel (ILGRP).

 

The ILGRP was tasked with investigating and identifying options for governance models, structural arrangements and boundary changes for local government in NSW. The ILGRP released its final report “Revitalising Local Government” in October 2013 and the NSW Government released its response to that report in September 2014 through a report titled “Fit for the Future”. Each of these reports covered a range of issues pertinent to local government and its future, such as the system of rating; financial assistance grants; meeting infrastructure needs; leadership and governance arrangements amongst others.

 

One of the recommendations of the ILGRP Report was a proposal to establish new Joint Organisations (JOs) for each of the regions in NSW under proposed new provisions of the Local Government Act 1993. The NSW Government supported this in its response, initially by way of establishing a pilot framework and inviting applications for 5 x pilot JOs across the State through a competitive process. Five pilots were chosen and these pilots were supported in their evolution so as to potentially develop a stronger framework for future JOs, once the system was formalised

 

Following on from the above, since 2015 as part of the NSW Governments ongoing local government reform process, there have been numerous reports and papers specifically focussing on JOs as follows:

 

-     Joint Organisations: Mid Pilot Report – July 2015;

-     Joint Organisations: Emerging Directions Paper – September 2015;

-     Joint Organisations: Office of Local Government End Pilot Evaluation Report by KJA Engaging Solutions – March 2016

-     Joint Organisations: Towards a New Model for Regional Collaboration Overview – June 2016

-     Joint Organisations: Towards a New Model for Regional Collaboration Full Paper – June 2016

-     Joint Organisations: Getting the Boundaries Right – September 2016

 

During the time of consideration of the above reports, Council made two submissions to the NSW Government relating to JOs and concerns around their establishment and operation. Copies of these submissions are attached to this report for information.

 

As can be seen from the information provided above, JOs have been the subject of much discussion over the past several years and with the commencement of the relevant legislation in December 2017, JOs are now a reality. As defined by the new legislation, following are the principle and ‘other’ activities of a JO:

 

400R Principal functions of joint organisations

 

(1)   A joint organisation has the following principal functions:

-                       

(a)  to establish strategic regional priorities for the joint organisation area and to establish strategies and plans for delivering those strategic regional priorities,

(b)  to provide regional leadership for the joint organisation area and to be an advocate for strategic regional priorities,

(c)  to identify and take up opportunities for inter-governmental co-operation on matters relating to the joint organisation area.

 

(2) In establishing strategic regional priorities for the joint organisation area, a joint organisation is to consider any relevant strategic priorities or plans of member councils and the State government.

 

(3) A strategic regional priority, or a plan or strategy for delivering a strategic regional priority, established by a joint organisation does not limit the operation of or otherwise affect any regional plan or strategy given effect to under the Environmental Planning and Assessment Act 1979 (including any regional plan made under Part 3B of that Act).

 

400S Other functions of joint organisations

 

(1) A joint organisation may deliver services and provide assistance to or on behalf of councils (including capacity building), as agreed with the councils, and subject to any restrictions imposed by the regulations. Note: Some functions may also be delegated to a joint organisation by a council, see sections 377 and 379.

 

(2) A joint organisation has any other function conferred on the joint organisation by or under this Act or any other law.

 

Rather than revisiting all the previous work around JOs and to put some context to this current discussion now that the Act has commenced, copied below are some questions and answers that have been provided to Councils by the OLG that will provide some valuable background to JOs and what, according to the NSW government, JOs are being established to achieve:

 

1)   What is a Joint Organisation?

 

A JO is a new entity under the Local Government Act comprising member councils in regional NSW to provide a stronger voice for the communities they represent.

 

A JO will provide a more structured, permanent way for local councils, State agencies and other interested groups to collaborate. Each region will decide its own priorities, working on short and long term projects such as attracting a new industry to the region or improving the health of a river system. By putting their resources together and focusing on the unique challenges and strengths of their whole region, JO members can drive better outcomes for local residents.

 

Each JO will comprise at least three member councils and align with one of the State’s strategic growth planning regions. One of the member council’s Mayors will be elected chairperson and an Executive Officer may be appointed.

 

2)   How will Joint Organisations benefit councils and communities in regional NSW?

 

JOs will transform the way that the NSW Government and local councils collaborate, plan, set priorities and deliver important projects on a regional scale. These new partnerships will benefit local communities across regional NSW by working across traditional council boundaries.

 

3)   How do we know Joint Organisations will work?

 

The JO model has been developed in close consultation with councils and the NSW Government has listened to regional councils to get the model right. This included a pilot program for five groups of councils to test a range of options, which involved the participation of 43 councils and delivered a range of initiatives and projects to those regions.

 

An independent evaluation of the pilot program found JOs bring benefits to regional communities in delivering on-the-ground projects and attracting more investment to regional communities.

 

4)   How are Joint Organisations different to Regional Organisations of Councils (ROC’s)?

 

The JO model provides for greater certainty and continuity as well as recognising the unique differences in the many regions of NSW. While some ROC’s have been effective, they have varied functions, membership, and governance structures which often makes collaboration more difficult.

 

5)   Why has the Government decided to make joining Joint Organisations voluntary?

 

The majority of regional councils support JOs but some asked for more time and flexibility to determine their own membership of a new regional body and the Government has listened to this feedback.

 

6)   Why should councils choose to form a Joint Organisation?

 

JOs will provide a forum for councils, agencies and others to come together and focus on their regional priorities – the things that matter for that region. JOs will help drive the delivery of important regional projects – the infrastructure and services that local communities need and deserve.

 

JOs will also provide councils with a more efficient way to deliver shared services for members and the region. Where member councils agree, they can choose to share a common approach to services such as information technology, water management services and community strategic planning.

 

The NSW Government will provide $3.3 million to support councils to establish JOs.

 

7)   Can councils determine their own regional boundaries?

 

While the choice to join and composition of a JO is voluntary, the NSW Government will only support the creation of JOs within existing State planning regions and in regional NSW. Councils have told us that effective collaboration will only be realised when State and local government boundaries are aligned.

           

To aid this process the NSW Government has consulted the sector on boundary criteria which they can take into account when determining the membership of their JO. JO boundaries should:

 

-     align with, or ‘nest’ within one of the State’s planning regions;

-     demonstrate a clear community of interest between member councils and regions;

-     not adversely impact on other councils or JOs, for example, leaving too few councils to form a JO;

-     be based around a strong regional centre or centres;

-     be of an appropriate size to partner with State, Commonwealth and other partners.

 

Consistent with previous Government decisions, JOs will not be considered for metropolitan Sydney and the Central Coast at this time.

 

8)   What funding is available to Joint Organisations?

 

The Government will provide up to $3.3 million in seed funding to JOs to support their establishment. The Government will identify opportunities for additional investment through JOs in regional economies.

 

Funding for each JO will be based on the number of councils that choose to form a Joint Organisations, with maximum funding provided to regions where all councils in a region choose to be members of the new regional body.

 

All Joint Organisations, whether they were pilot regions or not, will be provided with seed funding. Further details on funding arrangements will be provided to councils.

 

9)   Will this funding be enough to help councils establish a JO?

-                       

The NSW Government is providing significant funding and support to help those councils that choose to establish a JO. The pilot program demonstrated that groups of councils can achieve substantial benefits for their communities and significant cost savings by working together through a JO.

 

10)  What are the next steps for interested councils?

-                       

Following the passage of legislation through Parliament, councils will be invited to nominate to form a JO in their region. Councils are encouraged to open discussions with their neighbours as soon as possible. The Office of Local Government is available to facilitate these discussions and provide support to councils through the nomination process. Specific requirements to form a JO will be provided to councils shortly.

 

Each Joint Organisation will be created by a proclamation and the NSW Government will then ask the Commonwealth to endorse each Joint Organisation as a non-national system employer to ensure that any staff of a JO, with the exception of the Executive Officer, are employed under the State Local Government Award.

 

11)  What support will be provided to councils and Joint Organisations once established?

 

The OLG will work with JOs to support their establishment and ensure they have the necessary systems and governance in place for the JOs to deliver results for regional communities.

 

The OLG and the Department of Premier and Cabinet (DPC) will foster collaboration between JOs and State agencies to identify and act on opportunities to benefit regional communities.

 

 

12)  Can councils choose not to participate?

-                       

Councils can choose not to become a member of a JO. The Government strongly encourages all councils in regional NSW to consider the benefits and opportunities offered by JOs. Councils that are members of JOs will be able to take advantage of investment opportunities that are delivered through the JO.

 

13)  Is there a role for Parliamentary Secretaries in Joint Organisations?

 

Parliamentary Secretaries will play a key role in championing a new, shared regional collaboration which will bring together Regional Leadership Groups of State agencies and JOs.

 

14)  How has the Government’s approach changed?

 

The JO model that will be enabled through the legislation is consistent with the consultation and engagement with the sector. The Government has been listening to councils and has decided to implement JOs in a more flexible way.

 

For clarity, the above questions and answers have been provided to Councils by the OLG and are not necessarily Council’s views on the issues raised, but are provided here as background information only.

 

It should be stated that whilst the Local Government Amendment (Regional Joint Organisation) Act 2017 commenced on 15 December 2017, the regulations to support this legislation are yet to be finalised, or at the least, Councils have not yet seen the draft regulations. This lack of understanding of what is contained in the regulations does present some risk to all Councils, in as much as the OLG is asking Councils to give consideration to becoming a member of a voluntary JO (as detailed in this report), without knowing the full impact of the JO regulations on the Council. At the time of writing this report, enquiries were being made of the OLG in relation to the final timing of the regulation and their likely impact on Councils.

 

Council has worked collaboratively for many years with surrounding Councils and has been a member of the Mid North Coast Regional Organisation of Councils (MIDROC) since its establishment. Until recently, MIDROC included the following member Councils:

-    Port Macquarie-Hastings Council;

-    Kempsey Shire Council;

-    Nambucca Shire Council;

-    Bellingen Shire Council;

-    Coffs Harbour City Council;

-    Greater Taree City Council;

-    Gloucester Shire Council.

 

The 2016 merger of Great Lakes Council, Greater Taree City Council and Gloucester Shire Council to become MidCoast Council has seen Greater Taree City Council and Gloucester Shire Council leave MIDROC. Further to this change in membership, in 2017 Clarence Valley Council officially joined MIDROC, making the existing membership of MIDROC as follows:

 

-    Port Macquarie-Hastings Council;

-    Kempsey Shire Council;

-    Nambucca Shire Council;

-    Bellingen Shire Council;

-    Coffs Harbour City Council;

-    Clarence Valley Council.

 

MIDROC has worked collaboratively for many years on a range of issues, mostly from an advocacy perspective, with a number of operational sub-groups established throughout that time. As demonstrated by our long term membership of MIDROC, Council is not averse to working regionally with other Councils.

 

MIDROC collectively represents close to 300,000 residents across the member Councils and is therefore a strong advocacy body for the north coast of NSW. The current MIDROC objectives are to:

-      Advocate to and inform all spheres of government of the economic, social, environmental and infrastructure needs of the region.

 

-      Strengthen the role of local government in regional affairs with regard to policy and strategic directions of both State and Federal government.

 

-      Support the implementation of strategies that will build community capacity across the region and increase the effectiveness and efficiency of member councils through sharing ideas and resources.

 

With a view to the future, at the MIDROC Board meeting held on 6 July 2017, the University of Technology Sydney – Centre for Local Government (UTS) were engaged to draft a report for MIDROC detailing the options for forming a new entity.

The UTS presented their report and findings to the MIDROC Board meeting held on Monday 28 August 2017 and the Board unanimously resolved the following:

 

1)   That MIDROC move to form an Incorporated Association based on MIDROC’s existing constitution and articles of association.

2)   That MIDROC note that the formation of an Incorporated Association is carried out with a view to evolving to a Corporation Limited by Guarantee in the future if appropriate.

3)   That the regional organisation be known as the Joint Organisation of Mid North Coast Councils (JOMNCC).

4)   That the Joint Organisation immediately apply to the NSW Government for funding as provided to other joint organisations in an annual sum of $600,000, as originally proposed to be allocated to the two Joint Organisations for this region.

5)   That the purpose and core functions of the Joint Organisation of Mid North Coast Council be;

a)   Strategic planning and priority setting;

b)   Intergovernmental collaboration;

c)   Regional leadership and advocacy;

d)   Shared service delivery and capacity building.

 

The above MIDROC Board resolution was made in light of the fact that at the time of the August MIDROC Board meeting, the NSW government had not been able to commit to when the JO legislation might commence or when JOs themselves might be established. This Board resolution was an attempt to move MIDROC forward in light of the changes taking place across local government.

 

The UTS were then further engaged by the MIDROC Board to develop a strategic plan that could be used as the basis for a mid-north coast JO. Through various workshops with the UTS and the MIDROC Board, the strategic plan was developed, a copy of which is attached to this report.

 

The MIDROC (JOMNCC) Strategic Plan has been prepared with reference to each of the member councils Community Strategic Plans, therefore ensuring that the “regional” strategic plan has regard to the various communities that make up the wider region.

 

As detailed earlier in this report, the JO legislation has now commenced and the government are aiming to have JOs operational by July 2018. In light of this, at the 28 November 2017 MIDROC Board meeting, the Board resolved the following:

 

1)   Review enabling legislation and provide a report to the Board.

2)   That following a review of the legislation each member endorses the Joint Organisation by a resolution of council.

3)   That JOMNCC submit a request to establish a Joint Organisation by 28 February 2018.

 

As per the above MIDROC Board resolution, this report to Council addresses the issue of Port Macquarie-Hastings Council giving consideration to being included in a JO.

 

Through the two submissions Council has previously made around JOs (as attached to this report), Council noted our concerns around the operation of JOs. Two of the key concerns were the fact that there would be one vote per Council regardless of the size of the Council and the fact that at the time the submissions were made (2015 & 2016), being a member of a JO was to be mandatory.


On the issue of mandatory membership of a JO, it should be noted that as detailed earlier in this report, the Act has now determined that membership of a JO is voluntary as opposed to the original position of the NSW government that membership would be mandatory. As detailed in the response to Question 12 above, Councils can choose not to become a member of a JO, however the government is strongly encouraging all Councils in regional NSW to consider the benefits and opportunities offered by JOs. According to the government, Councils that are members of JOs will be able to take advantage of investment opportunities that are delivered through the JO.

 

As the legislation is written, once a Council becomes a member of a JO, there is an opportunity for a Council to be removed from a JO, however this would require a proclamation by the Governor as detailed in the extract of the Act below:

 

400ZC Amendment and dissolution of joint organisations

(1) The Governor may, by proclamation, amend or revoke a proclamation in force under this Part for the purpose of amending the constitution of, or of dissolving, a joint organisation.

(2) A proclamation for the purpose of amending the constitution of a joint organisation:

(a) may change the name of the joint organisation, or

(b) may vary the joint organisation area by adding or removing council areas and may specify the name of each council whose area is included in or removed from the joint organisation area.

 

On the issue of one vote per member Council of a JO, this is now legislated, so regardless of the size of a Council, one vote only is allowed per Council at JO Board meetings. This could mean that into the future a situation arises where a group of smaller Councils (who make up the majority of votes in the proposed JOMNCC), vote together on an issue that is considered not to be in the best interests of the larger member Councils i.e. Port Macquarie-Hastings Council and Coffs Harbour City Council.

 

Whilst the above does present a potential risk, the reality is that this situation exists today in MIDROC where each voting member only has one vote and to date this has not yet presented us with any challenges that we were not able to work through. Having said the above, there is one key difference between the structure of MIDROC as we know it today and the future JO, with that difference being that MIDROC is not a legislated body, whereas the JO will be. This then leads to the logical conclusion that a resolution of the JO Board will have considerably more power than a resolution of the current MIDROC Board.

 

Taking the above further, this then leads to the question of whether a resolution of the JO Board takes precedence over a formal resolution from a member Council made under the Act, or vice versa. For instance, there could be a situation arise where a member Council has previously resolved to not support a particular regional initiative of some sort, however the JO Board resolves to support this. Whilst the likelihood of something like this taking place is possibly highly unlikely, it would appear that there is some risk that this could take place.

 

At the time of writing this report, further advice on the above is being sought from the OLG. What is known at this stage is that when a JO is formed, a formal charter will need to be determined by the JO Board and this charter will need to detail how decisions of a JO Board will be made. The choices around how decisions will be made will likely be either by a simple majority of votes or 100% support will be required. It is clearly too early to understand what the JOMNCC charter will look like, however the issues raised above will need to form part of that conversation based on any future advice received from the OLG.

 

From a funding perspective, whilst the NSW government has announced funding of $3.3 million to support Councils to establish a JO, at this stage there will be no ongoing funding provided to Councils for the operation of a JO by the NSW government. Each member Council will be required to contribute financially to the operation of the JO and the basis for this will be agreed by each JO Board, noting that all Councils have previously contributed financially to the operation of MIDROC.

 

The level of funding required to operate the JO will not be fully known until such time as the JO has developed their Regional Strategic Plan and there is agreement on the appointment of an Executive Officer being either on a part time or full time basis and any other contract of employment conditions.

 

In relation to future funding of the JO, at the 28 November 2017 MIDROC Board meeting, the following was resolved:

 

1)   That Board notes the Ministerial press release associated with Joint Organisations (JOs) and the $3.3 million allocated to support JOs.

2)   That further correspondence to the Minister’s office be prepared in the event that pilot JOs are provided with additional financial support.

3)   That the Board supports initial funding the Joint Organisation via a base rate of $250,000, that is $41,666 per council for 2018/2019 and a per capita rate to be determined following Strategic Plan priorities and organisational requirements.

 

For clarity, the above resolution means that for the 2018-2019 financial year, each Council will contribute $41,666 as a minimum with the further per capita rate being determined at some point into the future. Further information around the likely financial contribution can be found below under the Financial and Economic Implications section of this report.

 

The NSW government has long held the view that Councils need to collaborate. As detailed earlier in this report, Council has worked collaboratively with other MIDROC Councils since the establishment of MIDROC, as well as having worked with a range of Councils outside of MIDROC also.

 

There is no doubt that the State government is increasingly developing funding programs that target regions rather than just one Council i.e. the NSW government program called Growing Local Economies (GLE) is an example of this. The GLE requires regional economic areas to consider regional priority projects for funding, not necessarily individual Council projects. If Council want to continue to be able to apply for regionally focused funding programs for the benefit of the local community and the regional area, then being a member of a JO will likely be necessary.

 

As per the recommendation included in this report, as Port Macquarie-Hastings Council is a leading NSW Council, it is important that Council is a member of the JO in order to be able to influence regional priorities. There is a real opportunity for Council to be able to demonstrate regional leadership in being a member of the JO.

 

Council does of course have the option of not becoming a member of a JO, however as detailed earlier in this report, the government is strongly encouraging all Councils in regional NSW to consider the benefits and opportunities offered by JOs. The government has stated that Councils that are members of JOs will be able to take advantage of investment opportunities that are delivered through the JO and whilst details around what these investment opportunities might look like are not available at this point in time, the government is making it fairly clear that there will be grant funding aimed specifically at JOs.

 

Apart from the benefits of regional advocacy on a range of issues that will come from being a member of a JO, the Act allows JOs to undertake ‘other’ functions on top of the principle functions detailed above. These other functions could be around resourcing sharing or shared services into the future. Council is not currently involved in any discussions around these functions with other Councils, however with a clear focus on continuous improvement and efficiency, all Councils may find some future benefit in having discussions around such initiatives. If Council chose not to be a member of the JO, then it may be increasingly difficult to be involved in such discussions into the future with surrounding Councils.

 

In relation to the way forward with JOs, the following information was received by Council from the Acting Chief Executive of the OLG on 11 January 2018:

 

Recently some councils have sought clarification about the nomination process. I would therefore like to confirm that interested councils need to take the following steps in order to complete the nomination process:           

 

1.   Identify your council’s planning region according to the map provided in the information pack

2.   Consult with councils within your preferred regional grouping to reach agreement on JO membership, noting that each JO must have a minimum of three member councils

3.   Once the proposed membership is agreed, ensure each member council endorses the proposal by a resolution of council

4.   By 28 February 2018, submit your nomination to form a JO by email to jointorganisations@olg.nsw.gov.au, marked ‘Nomination for Joint Organisation’. This is to include a copy of the resolution and the date council made that resolution, and

5.   Councils should also complete and return a Forming a Joint Organisation – checklist with the nomination.

 

Unlike a normal council resolution, the legislation provides a fixed 28 day period for councils to rescind such a resolution. As such, councils are also asked to undertake a further step, which may fall after 28 February:

 

6.   After the expiry of a period of 28 days from the making of council’s resolution, the General Manager inform the Minister in writing that council’s resolution has not been rescinded.

 

With regard to the above points, Council has undertaken the following:

 

1.   Council is part of the North Coast planning region, therefore the proposed JOMNCC nests within that planning region as required by the Act;

2.   Consultation with existing MIDROC Councils has been ongoing for some time and as per the previous MIDROC Board resolutions as detailed in this report, there is agreement that the existing members of MIDROC would be the member Councils of the proposed JO;

3.   This report deals with the issue of Council giving formal consideration to becoming a member of the proposed JO;

4.   Assuming a resolution of Council in line with the recommendation included in this report, the General Manager will action the requirement to inform the OLG by 28 February 2018;

5.   The related Forming a Joint Organisation checklist will also be completed as required.

6.   The required notification to the Minister will take place as detailed above.

 

The following MIDROC member Councils have already formally considered the issue of becoming members of a JO, noting that two Councils listed below are meeting the day before this scheduled Council meeting, therefore the result of those Council positions is not yet known at the time of writing this report:

 

Bellingen Shire Council:          On 31 January 2018, voted unanimously in favour of becoming members of a JO.

 

Nambucca Shire Council:      On 18 January 2018, voted 5 to 4 in favour of becoming a member of a JO.

 

Coffs Harbour City Council:   On 8 February 2018, voted 6 to 2 in favour of requesting an extension of time from the OLG for consideration of becoming a member of a JO and to hold a Councillor briefing on this issue.

 

Clarence Valley Council:        Meeting being held Tuesday 20 February 2018.

 

Kempsey Shire Council:         Meeting being held Tuesday 20 February 2018.

                                               

 

Options

 

Council has the option of resolving in line with the recommendation as included in this report, noting that the recommendation has been provided by the OLG so that all Councils wishing to be members of a JO resolve in the same manner.

 

Council also has the option of not resolving in line with the recommendation as included in this report, dependent on whether Council wishes to become a member of a JO or not, or requires further information.

 

Community Engagement & Internal Consultation

 

There has been no community engagement in relation to this report. There has been internal consultation with the General Manager, Directors and the Group Manager Governance & Procurement as well as engagement with other member Councils of MIDROC through a series of Board meetings as noted throughout this report.

 

Planning & Policy Implications

 

It is clear that becoming a member of a JO will result in a Regional Strategic Plan being developed by the JO that each member Council will need to play a part in developing and implementing. This plan will need to take into account the Community Strategic Plans of all member Councils as well as a range of other relevant State plans. As noted earlier in this report, attached to this report is the MIDROC Strategic Plan recently developed by the UTS and the MIDROC Board, with the intention being that this plan will become the Regional Strategic Plan for the newly formed JO.

 

At this stage there would appear to be no direct policy implications for Council if Council resolves to become a member of a JO.

 

It is not possible to say at this point in time if there will be any further implications from a planning and policy perspective in relation to the formation of a JO, however the intent would be to report any such impacts to Council prior to them taking place.

 

Financial & Economic Implications

 

As previously discussed, the NSW government has announced funding of $3.3 million to support Councils to establish a JO and at this stage it is understood that there will be no ongoing funding provided to Councils for the operation of a JO by the NSW government.

 

Each member Council will be required to contribute financially to the operation of the JO and the basis for this will be agreed by the JO Board, noting that all Councils have previously contributed financially to the operation of MIDROC.

 

The level of funding required to operate the JO will not be fully known until such time as the JO has developed their Regional Strategic Plan and there is agreement on the appointment of an Executive Officer being either on a part time or full time basis and any other contract of employment conditions.

 

As detailed earlier in this report, at the 28 November 2017 MIDROC Board meeting, the following was resolved:

 

1)   That Board notes the Ministerial press release associated with Joint Organisations (JOs) and the $3.3 million allocated to support JOs.

2)   That further correspondence to the Minister’s office be prepared in the event that pilot JOs are provided with additional financial support.

3)   That the Board supports initial funding the Joint Organisation via a base rate of $250,000, that is $41,666 per council for 2018/2019 and a per capita rate to be determined following Strategic Plan priorities and organisational requirements.

 

The above resolution means that for the 2018-2019 financial year, each Council will contribute $41,666 as a minimum with the further per capita rate being determined at some point into the future. Funds have been allocated in Councils draft 2018-2019 Operational Plan to cover this expense.

 

It should be noted that dependent on the per capita funding model applied to the JO, it is possible that the annual cost to Council for membership of the JO may be upwards of $100,000. As stated above, it is too early to tell what the future funding level to operate the JO will be, but for 2018-2019, on top of the Council contributions, there will be an allocation of funding from the State government for the establishment of the JO, however at the time of writing this report, the exact amount to come to the JOMNCC is unknown.

 

For information, there have been a couple of different funding models used in the past for how member Councils have funded MIDROC. In general terms, funding has ranged from $10,000 up to $20,000 per annum, with additional costs being borne around specific projects that may have been undertaken.

 

As detailed by the State government, being a member of a JO may well see regional grant funding being available for the JO to apply for. At this stage there is no specific indication as to what these broader regional funding programs may be, but it is anticipated that they will be based around supporting priority projects as detailed in the JO Regional Strategic Plan. As more information comes to light on such funding, further information will be provided to Councillors.

 

Further to the above, it is possible that at some point into the future there may be functions of the JO that provide cost savings to member Councils. These cost savings may flow from things like the implementation of shared services; joint procurement or successful joint applications for grant funding etc; however it is too early to know what likely cost savings may ultimately flow from the JO back to member Councils.

 

Attachments

 

1View. Joint Organisation Legislation - Passed by Both Houses

2View. Letter from the Office of Local Government - Joint Organisation Nomination Reminder

3View. Joint Organisations - Emerging Directions Submission - October 2015

4View. Joint Organisations - Background Paper Submission - July 2016

5View. MIDROC (JOMNCC) Strategic Plan

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.02

 

Subject:     2017 Local Government NSW Annual Conference

Presented by:  General Manager, Craig Swift-McNair

 

 

Alignment with Delivery Program

 

1.2.1 Promote Council participation and build linkages in local, state and federal initiatives, forums and opportunities to support Council’s continued planning for the growth of the region.

 

 

 

RECOMMENDATION

 

That Council note the information contained in the 2017 Local Government NSW Annual Conference report.

 

Executive Summary

 

The 2017 Local Government NSW (LGNSW) Annual Conference was held in Sydney from 4 to 6 December 2017. As per a previous resolution of Council, Mayor Peta Pinson, Councillors Peter Alley and Geoff Hawkins attended the conference, as well as the General Manager.

 

The purpose of this report is to provide an overview of the annual conference.

 

Discussion

 

At the Ordinary Council Meeting held on 20 September 2017, Council resolved the following:

09.05 - 2017 LOCAL GOVERNMENT NSW ANNUAL CONFERENCE

 

RESOLVED: Levido/Griffiths

 

That Council:

1. Grant approval for Mayor Peta Pinson, Councillor Geoff Hawkins and Councillor Peter Alley to attend the 2017 Local Government NSW Annual Conference to be held in Sydney from 4 to 6 December 2017.

2. Determine that Mayor Peta Pinson, Councillor Geoff Hawkins and Councillor Peter Alley be Council’s voting delegates for the Elections of Office Bearers and the Board of Local Government NSW at the Conference.

3. Determine that Mayor Peta Pinson, Councillor Geoff Hawkins and Councillor Peter Alley be Council’s voting delegates for voting on motions which determine the policies and priorities for the Local Government NSW and the sector.

 

CARRIED: 9/0

 

FOR: Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

AGAINST: Nil

 

As per Council’s “Payment of Expenses and Provision of Facilities to Councillors” Policy, a Councillor may nominate or be nominated to attend conferences, seminars, or similar functions. Mayor Pinson and Councillors Geoff Hawkins and Peter Alley indicated their interest in attending the 2017 Local Government NSW Conference. 

 

In line with the above Council resolutions, Mayor Peta Pinson, Councillors Peter Alley, Geoff Hawkins and the General Manager attended the annual LGNSW conference on 4 to 6 December 2017 in Sydney.

 

The Local Government NSW Annual Conference is the signature event of the year for all NSW Councils and provides a forum in which to debate important issues pertinent to our local communities. It also provides the opportunity to hear from State Government leaders, business representatives, community groups and academics. This year there were approximately 880 delegates in attendance at the conference. A copy of the conference program is attached for your information.

 

Apart from being a conference with a range of speakers on various issues, the conference is also the policy making conference for LGNSW and as such involves voting on a series of motions. There were two rolls of voters, one for voting in the elections for Office Bearers and the Board of Local Government NSW and a separate roll of voters for voting on motions which determine the policies and priorities for Local Government NSW and the sector. The Mayor and Councillors in attendance at the conference were Council’s voting delegates in both instances.

 

On Monday 4 December, the General Manager attended a General Managers briefing on ‘Coming Together Post-Amalgamation’ which saw several speakers present case studies on life after amalgamation; whilst the Mayor attended a briefing on ‘Elected Life & Good Governance’.

 

The formal conference commenced on Tuesday 5 December. The opening address was by the Acting Premier, Deputy Premier of NSW, The Hon. John Barilaro MP, followed by the outgoing President of LGNSW, Councillor Keith Rhoades AFSM.

 

Following the above addresses, the official State Conference was opened, where voting delegates commenced giving consideration to and voting on approximately 90 motions put forward to the conference by Councils. Voting on these motions ran for the majority of the day. A copy of the voting decisions to come from this part of the conference is attached for information.

 

During the morning of Tuesday 5 December, the General Manager along with the General Managers from other mid north coast Councils met with the NSW Small Business Commissioner, Robyn Hobbs OAM and representatives from Service NSW to talk about their range of services and the NSW outdoor dining trial as well as other potential future initiatives.

 

During the afternoon of Tuesday 5 December, the Minister for Local Government, The Hon Gabrielle Upton MP attended the conference and gave a broad ranging speech that included reference to the low cost loan facility available to Councils from NSW Treasury Corp (TCorp). According to the Minister some 18 x regional Councils and 10 x metropolitan Councils have now accessed this facility, however when this facility was originally set up by the NSW government, it was for access only by Councils that were deemed to not be Fit for the Future (FFF). On this basis and as a Council deemed to be ‘Fit’, Port Macquarie-Hastings Council (PMHC) has not accessed this facility. At the time of writing this report, enquiries are being made of TCorp in relation to this facility and the ability for this Council to have access to this low cost loan facility and if access is available to Council, what the process may be for entering into such a facility etc.

 

On Wednesday 6 December the Mayor attended the Australian Local Government Women’s Association (ALGWA) breakfast, with guest speaker being Rhoda Roberts, Head of First Nation Programming at the Sydney Opera House. Ms Roberts spoke on accessing and creating relationships with your local community.

 

For the conference sessions on Wednesday 6 December, Ellen Fanning was Master of Ceremonies and the first speech of the day was from The Hon. Peter Primrose MLC, Shadow Minister for Local Government. This was followed by an interesting speech via video link by Dr Jonathan Carr-West, Chief Executive, Local Government Information United Kingdom, largely talking about transforming local government. The premise for the speech was that local government is not exempt from the ‘collapse of trust’ that has afflicted all levels of government and some large institutions in recent years. Dr Carr-West has suggested that Councils need to proactively work towards closing what he referred to as the ‘trust deficit’.

 

The Secretary of the Department of Planning and Environment, Carolyn McNally, spoke about housing affordability and partnerships with Councils across the State. This was followed by The Minister for Roads, Maritime and Freight, The Hon. Melinda Pavey MP and the Member for Oxley who spoke about the investment in infrastructure across the State.

 

The above was followed by a presentation by Stuart Reeve, the Managing Director of Micromex Research and Consulting on community perceptions of local government following some work Micromex had done for LGNSW. A copy of this presentation is attached to this report for information.

 

Then came the presentation of the A. R. Bluett Memorial Award (Bluett Award). As per the report to the December 2017 Council meeting (copy attached), Council was declared the winner of the 2017 Bluett Award.

 

The Bluett Award is contested each year by Councils in NSW who would like to be recognised as being the most progressive in the State and looks at all aspects of Councils operation. Entry is open to all NSW Councils irrespective of size or resources. There are two categories of the award, being city, metropolitan, major regional rural Councils in one category, with rural Councils in another category. Council was declared the winner in the city, metropolitan, major regional rural category, whilst Bland Shire Council were declared the winners of the rural category.

 

As stated in the December 2017 Council report, winning the Bluett Award is a remarkable result for Council and is recognition of our commitment to innovation, strategic planning, continuous improvement and engaging with the community to understand and deliver on its aspirations and expectations.

 

The presentation of the Bluett Awards was followed by an address from the outgoing President of LGNSW, Councillor Keith Rhoades AFSM on the association’s initiatives during 2017. This was followed by the LGNSW Treasurers report.

 

The afternoon of Wednesday 6 December saw a range of concurrent sessions with Mayor Pinson and Councillor Alley attending a session on Environment and Planning and Councillor Hawkins and the General Manager attending a session on Infrastructure and Economics. This was followed by the closing address of the conference by Walkley Award winning journalist, Annabel Crabb.

 

On the early evening of Wednesday 6 December, representatives from Kempsey Shire Council and Port Macquarie-Hastings Council met with the Minister for Roads, Maritime and Freight, The Hon. Melinda Pavey MP at her offices following an invitation from the Minister earlier that day. The purpose of this meeting was a general meet and greet with representatives from the Ministers Oxley electorate and some of the Ministers staff.

 

The conference ended with the formal conference dinner on the evening of Wednesday 6 December.

 

As mentioned above, during the conference the voting delegates were able to vote in the elections for Office Bearers and the Board of Local Government NSW. On Friday 8 December 2017, the Australian Electoral Commission declared the election of the LGNSW President and Directors as follows:

 

Directors (Metropolitan/Urban):

Karen McKeown, Mazhar Hadid, Julie Griffiths, Khal Asfour, George Greiss, Lesley Furneaux-Cook and Michael Regan.

 

Directors (Rural/Regional):

Darriea Turley, Phyllis Miller, Marianne Saliba, Ruth Fagan, Ben Shields, Rod Kendall and Paul Harmon.

 

The above people join Cr Linda Scott (President), Cr Marjorie Spooner O’Neill (Treasurer), Cr Angelo Tsirekas (Vice President - Metro/Urban), Cr Lindsay Brown (Vice President - Rural/Regional) and Cr Keith Rhoades (Immediate Past President) on the Board of LGNSW.

 

A trade exhibition also took place for the duration of the conference, with a large range of service providers on show from legal service providers, to heavy equipment suppliers, as well as the Office of Local Government and other government agencies. The conference also allowed time for networking with other Councils across NSW.

 

Options

 

This report is for noting only.

 

Community Engagement & Internal Consultation

 

There has been no community engagement in relation to this report. Consultation has taken place with the Mayor, Councillor Geoff Hawkins and Councillor Peter Alley in relation to this report.

 

Planning & Policy Implications

 

There are no planning and policy implications in relation to this report.

 

Financial & Economic Implications

 

The 2017-2018 budget contains an allocation for expenses pertaining to conferences and out-of-pocket expenses for Councillors. The attendance by Councillors at the Conference has been funded from within the existing budget allocation. The total cost of attendance at the conference for the Mayor, Councillors Hawkins and Alley and the General Manager was $11,119.68. This includes conference registrations, accommodation, travel and out-of-pocket expenses as allowed for under the Policy.

 

Attachments

 

1View. Council Report - A.R. Bluett Award - December 2017

2View. LGNSW 2017 Conference Program

3View. LGNSW 2017 Record of Decisions

4View. LGNSW 2017 Presentation by Stuart Reeve - Micromex

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.03

 

Subject:     Invitation to Join Regional Cities NSW

Presented by:  General Manager, Craig Swift-McNair

 

 

Alignment with Delivery Program

 

1.2.1 Promote Council participation and build linkages in local, state and federal initiatives, forums and opportunities to support Council’s continued planning for the growth of the region.

 

 

 

RECOMMENDATION

 

That Council note the information contained within the Invitation to Join Regional Cities NSW report.

 

Executive Summary

 

Council has received an invitation to join a new group called Regional Cities NSW. The purpose of this report is to provide information relating to the new group and to detail next steps for Council.

 

Discussion

 

In early January 2018, Council received an invitation from the Inland Forum to join a new group called Regional Cities NSW (RCNSW).

 

The Inland Forum is an existing group of seven Councils that have worked collaboratively for a number of years to achieve improved outcomes and opportunities for inland NSW. The current Inland Forum members are Albury, Armidale, Bathurst, Dubbo, Orange, Tamworth and Wagga Wagga Councils. The membership of the Inland Forum have agreed that there is huge potential in expanding the membership of the group to create a new body to be known as Regional Cities NSW, hence the invitation received by this Council.

 

According to the invitation, RCNSW is to be modelled on the successful model that has been implemented in Victoria, where the ten largest cities outside of Melbourne work cooperatively on issues and projects of mutual interest that affect regional cities in that State.

 

Attached to this report is the proposal received from the Inland Forum. In summary, the proposal is as follows:

 

RCNSW will be comprised of Mayors and CEOs/General Managers of 16 large cities in regional New South Wales. These cities reside outside of the expanded metropolitan areas of Sydney, Newcastle and Wollongong, have distinct regional catchments, and share similar opportunities and challenges for growth and investment. The group will meet quarterly and is chaired by a host Council which is voted to the position annually.

 

RCNSW will be an alliance of regional cities dedicated to achieving real change in regional New South Wales through policy development and active implementation of those policies. Regional cities are the heart of regional New South Wales and by improving their infrastructure and liveability, regional cities can help to grow and support wider regional and rural communities.

 

The vision for RCNSW is - Building a sustainable New South Wales through regional growth.

 

The objectives of RCNSW are:

 

-     Continue to play an important role in the development of strategies that benefit regional and rural New South Wales and inform government policy.

 

-     Develop long−term policy positions that support and encourage the growth of regional New South Wales in its own right, that develop the regions as a viable alternative to metropolitan Sydney, and that encourage, enable and support government to deliver these policies.

 

-     Improve the infrastructure and liveability of regional cities through development of quality services, amenities and transport networks in order to promote economic development in regional and rural communities.

 

-     Encourage new industries and increase workforce capacity and employment opportunities in regional cities.

 

-     Continue to build awareness of RCNSW within government, media, business and RCNSW communities.

 

-     Maintain a reputation for well−considered and evidenced−based positions

 

According to the invitation, the following Councils have been granted the right to membership of RCNSW by virtue of having a distinct city identity that provides services to a broader regional catchment:

 

-     Albury;

-     Armidale;

-     Bathurst;

-     Cessnock;

-     Coffs Harbour;

-     Dubbo;

-     Griffith;

-     Lismore;

-     Maitland;

-     Orange;

-     Port Macquarie-Hastings;

-     Queanbeyan;

-     Tamworth;

-     Greater Taree;

-     Tweed;

-     Wagga Wagga.

 

 

Further details about the governance arrangements for RCNSW can be found in the attached document, however there will be a standard membership fee of $10,000 per annum per Council and there will be one vote per member Council in attendance at RCNSW meetings.

 

Whilst the establishment of RCNSW appears to be a good initiative, there are some issues for Council to give consideration to such as:

 

-     There are currently 7 Councils involved in the Inland Forum who have worked together for a number of years. What has been their level of success with issues faced by their Councils and how would they work with additional members, some with coastal responsibilities?

 

-     Will this be another form of a Regional Organisation of Councils, which may impact in some way on the future Joint Organisation of Mid North Coast Councils that is the subject of a separate report on this Council agenda?

 

-     What will Councils investment of $10,000 per annum return to Council and the community?

 

-     There will be additional responsibilities for the Mayor and the General Manager with four meetings expected in Sydney each year, with travel costs etc.

 

-     Whilst the formal objectives included in the attached Strategy are ambitious, are they in fact as relevant to this Council as other Councils?

 

In light of the above, it is proposed that the Mayor and General Manager travel to Sydney for the meeting being held on 1 March 2018, where members of the Inland Forum will meet with proposed members of RCNSW to discuss the proposal. Following this meeting in Sydney, a further report detailing relevant information and outcomes of the Sydney meeting will be tabled at a future meeting of Council for consideration.

 

Options

 

Council can choose to resolve in line with the recommendation as included in this report or choose to resolve in some other manner.

 

Community Engagement & Internal Consultation

 

There has been no community engagement undertaken in the development of this report. There has been internal consultation with the Mayor in relation to this report.

 

Planning & Policy Implications

 

There are no planning and policy implications in relation to this report.

 

Financial & Economic Implications

 

There are no financial and economic implications in relation to this report, other than the travel costs for the Mayor and the General Manager to attend the meeting in Sydney on 1 March 2018 as detailed earlier in this report. As noted above, if Council chooses to become a member of RCNSW, then there will be an annual membership fee of $10,000, plus travel costs associated with four meetings in Sydney for the Mayor and General Manager.

 

Attachments

 

1View. Correspondence from the Inland Forum - Invitation to Join Regional Cities NSW

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.04

 

Subject:     Status of Reports From Council Resolutions

Presented by: Corporate Performance, Rebecca Olsen

 

Alignment with Delivery Program

1.3.2 Build trust and improve Council's reputation through transparency, good decision making and living Council’s Values.

 

 

 

RECOMMENDATION

 

That Council note the information contained in the Status of Reports from Council Resolutions report.

 

Discussion

 

Report

Status

Reporting Officer

Original Anticipated Date for Report

Current Anticipated Date for Report

 

Financial Reserves Review - final report

(Item 09.05 - OC 19/04/17)

Currently finalising communications document with UTS.

DCP

Dec 2017

Feb 2018

 

QFPM – Public Art – Port Macquarie Town Square

(Item 13.02 – OC 13/12/17)

 

DSG

 

Feb 2018

 

South Lindfield Urban Release Area – post exhibition

(Item 12.09 – OC 13/12/17)

 

DSG

 

Feb 2018

 

Impact of Road Openings and Closures on Private Property

(Item 12.03 - OC 18/09/13)

To be included in overall review of roads policies.

Information still being sought.

DI

Mar 2015

Jun 2017

Jul 2017

Dec 2017

 

 

Mar 2018

 

Project Management Policy - implementation, operation and effectiveness to date incorporating the views of the Audit, Risk and Improvement Committee

(Item 09.03 - OC 15/02/17)

Project Management Framework training is underway in November. Assessments will be completed before and after the training to identify effectiveness. This will be supported by a plan for continuous improvement of project management capability.

DCP

Nov 2017

Mar 2018

 

Audit, Risk and Improvement Committee – Chairperson Nomination

(Item 14.01 – OC 18/10/17)

 

DCP

 

Mar 2018

 

Site Specific LEP Amendments - Status of all proposed site specific LEP amendments following adoption of the revised PMH UGMS and determine priorities in Council’s strategic land use planning program.

(Item 12.04 - OC 15/03/17)

Report proposed after exhibition, review and adoption of Urban Growth Management Strategy.

DSG

Jul 2017

Dec 2017

Mar 2018

 

By-election for Popularly Elected Mayor – Correspondence Responses

(Item 09.02 – OC 15/11/17)

 

GM

 

Apr 2018

 

City Managers Conference – post attendance report

(Item 09.03 – OC 15/11/17)

 

GM

 

Apr 2018

 

Climate Leadership Conference – post attendance report – Clr Alley

(Item 09.08 – OC 13/12/17)

 

GM

 

Apr 2018

 

Biodiversity Strategy – post exhibition

(Item 12.06 – OC 13/12/17)

 

DDE

 

Apr 2018

 

Future of Committees following establishment of Cultural Steering Group

(Item 15.05 - OC 19/04/17)

Item is to be discussed at a future Cultural Steering Group meeting

DSG

Jun 2017

Jul 2017

Sep 2017

Oct 2017

Feb 2018

Apr 2018

 

Urban Growth Management Strategy 2017-2018 – post exhibition

(Item 12.06 – OC 18/10/17)

Submissions currently still under review

DSG

Feb 2018

May 2018

 

Water Fluoridation - request for detailed information on studies and programs

(Item 10.01 - OC 15/07/15)

Awaiting further information from NSW Health.

DI

Nov 2016

May 2017

Jul 2017

Sept 2017

Nov 2017

Dec 2017

Mar 2018

May 2018

 

Planning Proposal - Homedale Road Kew - post exhibition

(Item 13.07 - OC 14/12/16)

Awaiting further response from proponent prior to public exhibition based on state agency consultation.

DSG

Oct 2017

Dec 2017

May 2018

 

Draft Structure Plan for the Greater Sancrox Area - consideration/investigations of potential urban capability/serviceability / capacity of lands between Oxley Highway to north, Pacific Highway to west and Houston Mitchell Drive to south and viability of rural residential development in the Greater Sancrox area.

(Item 13.07 - OC 18/02/15)

Delayed to align with UGMS report.

DSG

Dec 2016

May 2017

Jun 2017

Dec 2017

May 2018

 

Alternative Investment Options for higher returns

Item 09.10 – OC 15/11/17)

 

DCP

 

May 2018

 

Stormwater Strategy

(Item 12.11 – OC 13/12/17)

 

DI

 

June 2018

 

Port Macquarie Town Centre Pedestrian Facility Investigations - post community engagement

(Item 13.05 - OC 14/12/16)

Aspects of the engagement are outstanding

DI

Aug 2017

Oct 2017

Feb 2018

 

 

Sep 2018

 

Opportunities for Local Firms to do Business with Council

(Item 11.01 – OC 16/08/17)

 

DCP

 

Oct 2018

Canal Maintenance

(Item 12.04 – OC 18/10/17)

 

DI

 

2018/2019

FY

 

Draft Biodiversity Certification Assessment and Strategy - Port Macquarie Airport and Surrounding Land - viability and implications of the options for securing the required Blackbutt Tallowwood dry grassy open forest and Koala habitat credits, prior to the clearing that creates the demand for those credits.

(Item 12.01 - OC 10/08/16)

 

DDE

 

TBA

 

Classification of Land - Lot 5 DP774400 Stingray Creek Bridge Environmental Offset

(Item 12.01 - OC 16/11/16)

 

DCP

 

TBA

 

Tuffins Lane Sporting Fields - Terms of Agreement

(Item 06.02 - OC 14/12/16)

 

GM

 

TBA

 

Planning Proposal - Lot 2 DP1091253 Beach St, Bonny Hills

(Item 12.02 - OC 19/04/17)

 

DSG

 

TBA

 

Planning Proposal - Lot 14 DP240042, Pioneer Street, North Haven. King And Campbell Pty Ltd For Rd & Ml Tate And Tate Developments Pty Ltd - Post Exhibition

(Item 13.05 - OC 17/05/17)

 

DSG

 

TBA

 

Tree Management – Proposed Improvements

(Item 12.06 – OC 20/09/17)

 

DDE

 

TBA

 

Long Flat Village Sewer Scheme – Acquisition of Land and Easement – Classify as Operational Land

(Item 12.03 – OC 18/10/17)

 

DI

 

TBA

 

Planning Proposal PP2016 – 11.1 Mission Terrace Lakewood – post exhibition

(Item 12.06 – OC 15/11/17)

 

DDE

 

TBA

 

Planning Proposal Town Square Port Macquarie – post exhibition

(Item 12.07 – OC 15/11/17)

 

DDE

 

TBA

 

 

Cyclic Reports

 

Report

Reporting Officer

Reporting Cycle

Mayoral Discretionary Fund Allocations

GM

Monthly

Monthly Financial Update

DCP

Monthly

Investments

DCP

Monthly

Recommendations by the Mayor’s Sporting Fund Sub-Committee

SG

Monthly

Development Activity and Assessment System Performance

DDE

Quarterly

(May, Aug, Nov, Feb)

Operational Plan – Quarterly Progress Report

DCP

Quarterly

(Nov, Feb, April, Aug)

Glasshouse Strategic Plan Update

DCP

Biannual

(Feb, Aug)

Delivery Program – Six Monthly Progress Report

DCP

Biannual

(Mar, Sep)

Existing Site Specific Planning Proposals – Progress Report

DSG

Biannual

(Mar, Sep)

Long Term Energy Strategy – Progress Report

DDE

Biannual

(Apr, Oct)

Economic Development Strategy - Progress Report (Item 10.03 - ORD 20/11/2013)

DSG

Biannual

(Jun, Dec)

Mayoral and Councillor Fees (Setting of)

GM

Annually

(Jun)

MIDROC Strategic Plan 2013-2017 Outcomes

(Item 08.03 - ORD 21/08/2013)

GM

Annually

(Jul)

(re-list to Sep)

Council Policy - Status Report

DCP

Annually

(Jul)

Recreation Action Plan – Status Report

DDE

Annually

(Jul)

Annual Report of the Activities of the Mayor’s Sporting Fund

DSG

Annually

(Sep)

Compliments and Complaints Annual Report

DSG

Annually

(Sep)

Council Meeting Dates

GM

Annually

(Sep)

Creation of Office - Deputy Mayor

GM

Annually

(Sep)

Audit Committee Annual Report

DCP

Annually

(Sep)

Annual Report of Disability Discrimination Act Action Plan

DSG

Annually

Sep)

Legislative Compliance Register

CP

Annually

Sep)

MIDROC Strategic Plan 2013-2017 Outcomes

(Item 08.03 - ORD 21/08/2013)

GM

Annually

(Sep)

Annual Disclosure of Interest Returns

GM

Annually

(Oct)

Council’s Annual Report

DCP

Annually

(Nov)

Update Report - Impact of cost shifting for the previous financial year including any additional categories of cost-shifting that have been identified

(Item 09.04 - OC 21/10/15)

DCP

Annually

(Nov)

 

 

Attachments

Nil

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.05

 

Subject:     Disclosure of Interest Return

Presented by: Corporate Performance, Rebecca Olsen

 

Alignment with Delivery Program

1.3.2 Build trust and improve Council's reputation through transparency, good decision making and living Council’s Values.

 

 

 

RECOMMENDATION

That Council note the Disclosure of Interest returns for the following positions:

1.       Chief Financial Officer

2.       Bushland Management Co-ordinator

3.       Arborist

4.       Invasive Weeds Officer

 

Executive Summary

This report informs Council of the lodgement of a return disclosing the interests of a designated person which are required under section 445 of the Local Government Act 1993.

Discussion

 

Section 445 of the Local Government Act 1993, requires Designated Persons to prepare and submit written returns of interests in accordance with section 449.

The following positions are designated person under the Local Government Act:

 

1.      Chief Financial Officer

2.      Bushland Management Co-ordinator

3.      Aborist

4.      Invasive Weeds Officer

 

Section 450A(1) requires the General Manager to keep a Register of Returns and section 450A(2) requires the General Manager to table the Returns at the first Council meeting held after the last date for lodgement.

 

The Returns are then held in the Governance Section of Council and, as required by section 6 of the Government Information (Public Access) Act 2009, are available for public inspection, by appointment.

 

The returns for the following positions will be tabled at this meeting:

1.      Chief Financial Officer

2.      Bushland Management Co-ordinator

3.      Aborist

4.      Invasive Weeds Officer

Options

Nil.  Lodgement of a Return by a Designated Person is a requirement under section 445 of the Local Government Act.

Community Engagement & Internal Consultation

 

Internal Consultation

·    Group Manager Governance and Procurement.

·    General Manager.

·    Chief Financial Officer

·    Bushland Management Co-ordinator

·    Aborist

·    Invasive Weeds Officer

Planning & Policy Implications

There are no planning or policy implications.

Financial & Economic Implications

There are no financial or economic implications.

 

Attachments

Nil

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.06

 

Subject:     Financial Sustainability of Council and an Update on the NSW Performance Measurement Framework

Presented by:  Corporate Performance, Rebecca Olsen

 

 

Alignment with Delivery Program

 

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

 

 

 

RECOMMENDATION

 

That Council:

1.       Note the information in the Financial Sustainability of Council and an Update on the NSW Performance Measurement Framework report.

2.       Request the General Manager to engage UTS:CLG to update the Financial Sustainability Report with 2016/2017 data.

3.       Request the General Manager to develop internally a Communications Plan on the key messages outlined in this report.

 

Executive Summary

 

This report provides an update on the proposed NSW Performance Measurement Framework, and findings from a Financial Sustainability review that has been undertaken.

 

Whilst the Office of Local Government (OLG) have not provided a further update in respect of their proposed Performance Measurement Framework, the Audit Office of NSW in February 2018 have concluded a performance audit on Council service delivery across the NSW sector and have recommended that the OLG progress work on this Framework by mid 2018. In the absence of progress in late 2017, Port Macquarie-Hastings Council engaged the University of Technology Sydney, Centre for Local Government (UTS:CLG) to undertake a review of Council’s Financial sustainability.

 

Whilst a comprehensive review, the key messages from this review are:-

 

·    Overall financial sustainability of Port Macquarie-Hastings Council is strong and particularly impressive given the operating environment of Council.

·    In general, Port Macquarie-Hastings Council has taken important steps in recent years to improve its financial sustainability.

·    Focussing on some areas of potential improvement will help Council to continue to strengthen its financial sustainability in the years to come.

·    Continued prudent management is the best course of action in ensuring financial sustainability.

 

UTS:CLG have also conducted a review into Council reserves (cash invested by Council which is allocated for current and future projects). This is the subject of a separate report to Council in this agenda titled Council Financial Reserves Review. In this report, overall, UTS:CLG found Council’s reserve levels to be broadly appropriate and reasonable in light of Council’s circumstances. In particular, in UTS:CLG’s assessment, Council has successfully maintained a prudent buffer to prepare against potential financial risks associated with the predicted high development activity. In sum, and with Council’s expected medium-term level of development activity in mind, it would be broadly necessary for Port Macquarie-Hastings Council to maintain its reserve levels consistent with its current practice.

 

It should be noted that also in this agenda is a report titled Financial Impact of Cost Shifting from Other Levels of Government. This report highlights that the financial impact of other levels of Government shifting costs onto the ratepayer was almost $11.8 million in the 2016/2017 financial year. This relates only to what costs have actually been captured and measured and it is considered that the actual costs are greater. The Sustainability Review by UTS also reinforces that PMHC must be particularly alert to potential cost-shifting given its impact on financial sustainability.

 

Discussion

 

Background and Update on the Status of the proposed NSW Performance Measurement Framework.

 

At the Ordinary Council Meeting held on 5 October 2016, Council resolved:

 

09.07 NOTICE OF MOTION - PERFORMANCE MEASUREMENT FRAMEWORK

RESOLVED: Hawkins/Cusato 

That Council:

That the General Manager be requested to provide to the February 2017 Council Meeting an update on both the NSW Government's efforts and those of PMHC to build a new local government performance measurement framework. In responding, the General Manager is requested to:

1.       Cross reference to the content of the report to Council of 19 February 2014 on the same subject; and

2.       In addition to providing recent historical details of progress to date, lay out a broad proposed forward path incorporating high level milestones and indicative timelines.

.

CARRIED: 9/0

FOR: Besseling, Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, and Turner

AGAINST: Nil

 

A report was provided to the February 2017 Ordinary Meeting of Council addressing the above resolution (a copy of this report is attached for information).

 

As reported in February 2017, the development of a Performance Management Framework appears to remain on the Office of Local Government’s forward planning schedule, however there has been no further information provided to Council’s.

 

A Sector-Led Performance Monitoring Pilot Project was developed with a working group being formed to progress the project. The Working Group is comprised of representatives from:

 

-     Selected NSW Councils (including Port Macquarie-Hastings Council);

-     LG NSW;

-     OLG;

-     UTS: CLG.

 

Details of this project were provided in the report to Council in February 2017. Further progression of this project was subject to further funding being sought and as this has not been forthcoming, the project has stalled.

 

Audit Office of NSW – Performance Audit into Council reporting on service delivery

 

On 1 February 2018, a report was released by the NSW Auditor General (attached). This was an inaugural audit in the local government sector by the Audit Office of NSW. The recommendations from the audit are as follows:

 

The New South Wales Office of Local Government should, by mid-2018:

 

1.         issue additional guidance on good practice in council reporting, with specific information on:

a) reporting on performance against targets

b) reporting on performance against outcomes

c) assessing and reporting on efficiency and cost effectiveness

d) reporting performance over time

e) clearer integration of all reports and plans that are required by the Framework, particularly the role of End of Term Reporting

f) defining reporting terms to encourage consistency.

 

2.         commence work to consolidate the information reported by individual councils to NSW Government agencies as part of their compliance requirements.

 

3.         progress work on the development of a Performance Measurement Framework, and associated performance indicators, that can be used by councils and the NSW Government in sector-wide performance reporting.

 

4.         assist rural councils to develop their reporting capability.

 

The OLG responded to this report on 24 January 2018 (included as an appendix to the report). As part of their response, the OLG states “OLG is working on the Performance Measurement Framework for councils in NSW, incorporating appropriate performance indicators”.

 

It is hoped that with the recommendations of the Audit Office of NSW that the OLG will provide more information to Councils in respect of this framework, and that the Sector-Led Performance Monitoring Project may now get some traction and funding.

 

Financial Sustainability review

 

With the stall in the Sector-Led Project, and with no further information on the progress of the OLG’s performance reporting framework, UTS:CLG was engaged by Council late in 2017 to conduct a review of its financial sustainability, including an operational efficiency analysis. The review was informed by the expertise of UTS academics who are world leading authorities in this field. In this review, (UTS:CLG) have considered that this review has offered a more detailed and reliable analysis of financial sustainability than that conducted within reports conducted over recent years by various government authorities. This report is attached in its entirety.

 

As part of the review, PMHC was benchmarked against the following Councils:

 

DLG 5 Councils

Selected DLG 4 Councils

Coffs Harbour

Albury

Lake Macquarie

Ballina

Maitland

Byron

Newcastle

Dubbo

Port Macquarie-Hastings

Lismore

Shoalhaven

Port Stephens

Tweed Shire

Shellharbour

Wollongong

Tamworth

 

Wagga Wagga

 

For most indicators, five years of data was collected and examined (2011/2012 to 2015/2016) with an additional sixth year (2010/2011) employed in the efficiency analysis. It should be noted that the 2016/2017 financial year is now complete and audited however at the time of this review, much of this data was not yet available across all benchmarked Councils.

 

As a summary, the review finds that overall financial sustainability of Port Macquarie-Hastings Council is strong and particularly impressive given the operating environment of Council. Notwithstanding this, we note that there are a number of potential areas in which ongoing improvement may benefit financial sustainability going forward…we also note that, amongst the range of measures under examination, Port Macquarie-Hastings Council has tended to perform particularly well in those measures for which we believe are the most appropriate indicators for which Council’s performance should be assessed. For this reason, while we find that Port Macquarie-Hastings Council has underperformed in a range of additional measures, including compared to the peer group, this tends to occur in areas that we feel should be of relatively lower priority – and with generally lesser implication for financial sustainability – for Council.

 

Achievements noted

 

The report has made note of the following achievements:-

 

·    Performance in overall operating activity has generally been at a very high and consistent level of relative technical efficiency compared to other NSW water and sewer-serving Councils.

·    Significant progress has been made to improve the operating performance ratio compared to recent years and compared to the peer group.

·    Substantial efforts have been made in containing increases to non-road operating expenditures per rateable property.

·    Significant progress has been made in alleviating the net financial liabilities position in recent years.

·    Effective management of cash has been exercised and a high degree of cash liquidity has been demonstrated.

·    Staff expenditures per rateable property has been constrained reasonable well in recent years.

 

Potential Improvements

 

The report also made note of some potential improvements which would benefit general financial sustainability as follows:-

 

·    Cost-effectiveness of operational activities for road, water and sewer supplies has generally deteriorated since 2011-12.

For road and water operational expenditures, consultation with Port Macquarie-Hastings Council indicated that expenditures  may be subject to an upwards trajectory for the medium term. As a result, strategic planning to identify more cost-effective methods, in concert with evaluation of the quality of service delivery, could be a matter for consideration.

 

·    Budget inaccuracy as at times been excessive, which augments financial decision-making and planning.

For the most part, significant variations to revenue have been associated with extraneous factors to operational activities, or factors that could not be reasonably accounted for. In part, such revenue variations indirectly have impacted upon expenditure variations as a result. Nonetheless, it will remain appropriate to exercise control over budgets going forward.

 

·    Financial flexibility, while performing generally at around the average level compared to the peer group, will require sustained improvements given the local context, particularly demographic forces

It would be appropriate, in particular, to strengthen the nexus between the services demanded and those paying for services. This may require steady expansion of the revenue base, including an increase in the proportion of user fees and charges. This could mean that difficult, even unpopular, decisions may become necessary to support financial sustainability and ease the burden on current and future ratepayers.

 

·    Asset management indicators remain an area of underperformance, with only modest improvements being achieved over time, to date, especially compared to substantial improvements generally being made across the peer group over the same period

 

·    It may be appropriate to review current depreciation rates, which appear potentially to be artificially high compared to peers, which may be placing undue downward pressure on other related financial indicators

 

Recommendations

 

UTS:CLG have encouraged the consideration of the following measures

·    Care should be taken if considering borrowings in view of the fact that its repayment capacity is likely to reduce over time

·    Care should also be taken when considering the introduction of new services or service upgrades to ensure that they are fully funded, not just in the present, but also into the future (in cognisance of increased demands and reduced revenue capacity)

·    Be particularly alert to potential cost-shifting, especially with respect to pensioner concessions for local services (refer to the separate report in this agenda titled Financial Impact of Cost Shifting from Other Levels of Government which notes the financial impact of cost shifting for the 2016/2017 year as being almost $11.8 million)

·    There is a particular need to strengthen the nexus between the services demanded and those paying for the service

·    It may be necessary to consider variable pricing for merit goods to better reflect the circumstances of resident-consumers

 

These considerations will continue to be a focus for management. At the time of preparing this report, a senior leadership meeting had been scheduled to discuss the findings of the review.

 

Options

 

Council has the option to not update the review with 2016/2017 data or to update the report following the completion of the 2017/2018 financial year.

 

Community Engagement & Internal Consultation

 

The following internal consultation has occurred:-

·    General Manager

·    Executive Team

·    Chief Financial Officer

·    Corporate & Financial Planning Manager

·    Group Manager Assets & Property Investment

·    Group Manager Transport & Stormwater

 

 

Planning & Policy Implications

 

There are no planning and policy implications in relation to this report.

 

Financial & Economic Implications

 

There are no financial and economic implications in relation to this report.

 

Attachments

 

1View. Performance Measurement Framework - Report to Council - February 2017

2View. Audit Office of NSW - Performance Audit

3View. Financial Sustainability Review 

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.07

 

Subject:     Council Financial Reserves Review

Presented by:  Corporate Performance, Rebecca Olsen

 

 

Alignment with Delivery Program

 

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

 

 

 

RECOMMENDATION

 

That Council:

1.       Note the information in the Council Financial Reserves Review Report.

2.       Request the General Manager to develop internally a Communications Plan on the key messages outlined in this report.

 

Executive Summary

 

The University of Technology Sydney, Centre for Local Government (UTS:CLG) was engaged by Council to conduct an independent analysis of Councils’ financial reserves. This report provides the results of that review.

 

Whilst comprehensive, the key messages from this review and contextual information are:

 

·    At 30 June 2017, Council held in reserve $242.6 million.

·    72% of the total funds are restricted by State Government legislation for certain purposes (31.4% are tied to contribution plans, and 29.26% for Water and Sewerage activity) and cannot be used for other purposes (such as operations or the maintenance of roads).

·    The balance (28%) is set aside for various commitments such as employee leave entitlements, plant replacement, playing fields, airport and transport infrastructure renewal. A full list and explanation of all Council reserves is provided as an attachment to this report.

·    Until the funds are required, Council invests these funds which earn Council revenue which does assist the funding of Council services. For the current financial year, Council is forecasted to earn $6.3 million in interest revenue.

·    The Port Macquarie-Hastings local government area has experienced an unprecedented level of development activity. Whilst this has increased the level of reserves held through developer contributions, councils experiencing a high level of development activity require relatively high levels of reserves in order to adequately cope with the required levels of infrastructure spending.

·    Overall UTS:CLG found Council’s reserve levels to be broadly appropriate and reasonable in light of Council’s circumstances. In particular, it is UTS:CLG’s assessment that Council has successfully maintained a prudent buffer to prepare against potential financial risks associated with the predicted high development activity.

·    UTS:CLG found with Council’s expected medium-term level of development activity in mind, it would be broadly necessary for port Macquarie-Hastings Council to maintain its reserve levels consistent with its current practice.

 

To provide context, Council anticipates spending in the current financial year $110 million in operational expenditure (employee costs, materials and contracts, borrowing costs and in other expenses), and $138 million in capital projects and the repayment of debt which is a combined outlay of $248 million this financial year.

 

Of Council’s reserves, 31.4% are tied to contribution plans. A new draft Open Space Contributions Plan 2018 has been prepared for open space facilities across the local government area in accordance with the provisions of the Environmental Planning and Assessment Act 1979. The draft plan was identified as an action from the 2016/17 and 2017/18 Operational Plan and the draft Urban Growth Management Strategy. The draft plan will replace the current open space plan and follows on from background work including the Recreation Needs Study 2015 and Recreation Action Plan in 2017. This is the subject of a separate report in this Council agenda titled Open Space Contributions Plan, and the plan identifies clearly what projects are included and the percentage of the Developer Contributions plans that can be used to fund the project. Other contributions plans are also planned to be reviewed in due course.

 

UTS:CLG have also conducted a review into Council’s financial sustainability. This is the subject of a separate report to Council in this agenda titled Financial Sustainabilty of Council and an Update on the NSW Performance Measurement Framework. This review found in part that the overall sustainability of Port Macquarie-Hastings Council is strong and particularly impressive given the operating environment of Council. UTS:CLG found that in general, Port Macquarie-Hastings Council has taken important steps in recent years to improve its financial sustainability, and have advised continued prudent management is the best course of action in ensuring financial sustainability.

 

Discussion

 

At the ordinary Council Meeting held on 19 April 2017, Council resolved:-

 

09.05  Investments - March 2017

 

RESOLVED:  Levido/Cusato

 

That Council:

1.       Note the Investment Report for the month of March 2017.

2.       Request the General Manager undertake an external independent review of Council’s internal and external financial reserves with the following overall objectives:

(a)   To review the extent to which Council’s Reserve Balances are appropriate in consideration of the size and breadth of the organisation (including benchmarking to similar sized Councils) and various legislation and Council resolutions that apply.

(b)   In consideration of the Externally Restricted reserves provide comment on the following:

i.          Whether the S94/S64 Development Contribution Plans are up to-date.

ii.         Whether the charges in the Plans are adequate to fund the infrastructure identified.

iii.        Whether the Council is maximising its use of development contributions revenue in funding the forward works program.

(c)  Determine whether further opportunities exist to use reserve balances as a means of funding (including opportunities for borrowing against these reserves and the impact of such a strategy) for other projects not currently funded in the works program.

3.       Request the General Manager provide updates on the progress of the financial reserves review to the Finance, Corporate Services and Information Technology Portfolio and to all Councillors via appropriate briefings, prior to a final report being tabled at a future meeting of Council.

4.       Undertake public education that explains why the financial reserves have been established, how they receive income and how they relate to Council’s longer-term plans, including future projects that the reserves are likely to be allocated towards.

carried:      7/0

For:   Besseling, Alley, Cusato, Dixon, Griffiths, Intemann and Levido

Against:       Nil

 

This report seeks to address Resolutions 2 to 4 above.

 

External Independent Review of Council’s internal and external financial reserves

 

In addressing Resolution 2, the University of Technology Sydney, Centre for Local Government (UTS:CLG) was engaged by Council to conduct an independent analysis of Councils’ financial reserves with the scope of the engagement based on the specific consideration of the points outlined in Resolution 2 above.

 

UTS:CLG have now provided their final report which is provided as Attachment 1 and provides a comprehensive overview and response to the scope of the engagement.

 

A brief summary is provided as follows:-

 

Council Resolution

UTS:CLG Findings

To review the extent to which Council’s Reserve Balances are appropriate in consideration of the size and breadth of the organisation (including benchmarking to similar sized Councils) and various legislation and Council resolutions that apply.

 

Compared to its peers, and accounting for relevant council characteristics, Port Macquarie-Hastings Council currently holds a reserve balance that is greater than the expected level.

 

Overall, UTS:CLG found Council’s reserve levels to be broadly appropriate and reasonable in light of Council’s circumstances. In Particular, in UTS:CLG’s assessment, Council has successfully maintained a prudent buffer to prepare against potential financial risks associated with the predicted high development activity.

 

In sum, and with Council’s expected medium-term level of development activity in mind, it would be broadly necessary for Port Macquarie-Hastings Council to maintain its reserve levels consistent with its current practice.

In consideration of the Externally Restricted reserves provide comment on the following:

 

 

i).Whether the S94/S64 Development Contribution Plans are up to-date.

Contributions Plans are considered to be up to date if there is evidence of maximum reasonable derivation of contributions, rather than necessarily basing this assessment on specific date that Plans are originated from.

 

Compared to its peers, Port Macquarie-Hastings Council appears to be charging relatively high Section 94 contrbutions and Section 94 contributions exceed associated Section 94 expenditures, on average. On the basis of this, we deem Section 94 Contributions Plans to be broadly up to date (even though the Contributions Plan has not been updated as recent as its peers).

 

Compared to its peers, port Macquarie-Hastings Council appears to be charging relatively high Section 64 contributions with respect to associated Section 64 expenditures. On this basis, we deem section 64 Contributions Plans to be broadly up to date (even though the Contributions Plan has not been updated as recent as its peers).

ii. Whether the charges in the Plans are adequate to fund the infrastructure identified.

Compared to its peers, Section 94 yearly contributions are relatively high with respect to Port Macquarie-Hastings Council's infrastructure commitments. Port Macquarie-Hastings Council has, however, projected that its Section 94 commitments are underfunded with respect to its projections of future contributions and expected cost of work outstanding, particularly related to roads and traffic, and open space works.

 

Compared to its peers, Section 64 yearly contributions are relatively low with respect to Port Macquarie-Hastings Council's infrastructure commitments. This may imply that there is scope to raise Section 64 contributions to ensure adequacy going forward.

 

iii. Whether the Council is maximising its use of development contributions revenue in funding the forward works program.

 

Compared to its peers, Port Macquarie-Hastings Council would appear to be charging broadly comparable or higher levies than its peers (both Section 94 and Section 64). We have identified some potential minor opportunities for Section 94 levies to be reviewed, which could maximise contributions further.

Determine whether further opportunities exist to use reserve balances as a means of funding (including opportunities for borrowing against these reserves and the impact of such a strategy) for other projects not currently funded in the works program.

The usage of financial reserves varies according to the class of reserve. Restricted reserves may only be employed for their designated purposes and there are limited investment opportunities to accrue income from funds whilst held in reserve. Unrestricted reserves may be employed for general purposes (including investment purposes), or for funding additional unfunded projects.

 

There may be some opportunity to utilise debt in bringing forward infrastructure spending, however sophisticated debt capacity modelling should be conducted before undertaking such a strategy for funding forward works program.

 

Please also refer to the Sustainability Review report which is the subject of another report in this agenda.

 

 

Further information in respect of these issues is provided in Attachment 1, being the full report.

 

Whilst UTS:CLG have found Councils’ contribution plans to be broadly up to date, nonetheless, these plans are scheduled for review. The Open Space Contributions plan is presented as a separate report in this Council agenda.

 

In terms of undertaking further borrowings, Council has engaged UTS:CLG to also undertake a review into Councils’ financial sustainability. This is the subject of a separate report to Council in this agenda.

 

In noting the complexity of the Reserves report, UTS:CLG have also provided a summary report – titled Key Findings from Review of Reserves by UTS. This report is intended to summarise the key findings from the review and is provided as Attachment 2. Some extracts from this report are summarised below:

 

What are financial reserves and why do we need them?

 

In order to adequately provide infrastructure to support development activity in the community, Council identifies infrastructure priorities and puts money aside in reserve.

 

This is kept aside (held in reserve) until the money is required for the major infrastructure projects…such new works could include building new roads, community facilities and water and sewer systems. By saving this money in reserve, Council can use these funds as either an alternative, or in addition, to borrowing money to provide these assets.

 

It is generally preferable to use savings rather than borrow because a reliance on borrowings could result in the burden of excessive interest costs, which can have an adverse impact on Council’s financial sustainability. In addition, when infrastructure is funded through savings rather than borrowing, the money that is held in reserve can earn some interest revenue for Council.

 

What are current reserves being used for?

 

Most of the funds which are saved in reserve have external restrictions. This means that Council can only use them for specific purposes and cannot be used by council to fund general operations. Funds which carry external restrictions make up around 72% of all reserve funds of Council.

 

There are also some funds set aside for other priority infrastructure as deemed by Councils and Councillors. These are known as internally restricted reserves because they have been set aside for a particular purpose that has been determined internally by Council and so the money can be used for this specified purpose. This makes up around 28 per cent of all reserve funds.

 

What are Councils Current Reserves and what are they for?

 

An attachment titled Council Reserves at 30 June 2017 provides a full listing of all Council reserves, and their purpose.

 

It should be noted that whilst reserve balances exist, this may not be enough funding to provide for the expenditure required and in many instances is just an allocation. For example, within Councils External Restrictions for Water and Sewer, the balance in reserve as at 30 June 2017 totals $71 million. As stated by UTS:CLG in Attachment 2, Council is currently planning upgrades to water and sewer infrastructure. This includes an investment of around $120,000,000 to deliver a planned Water Treatment facility. In addition, other upcoming projects under Council’s consideration to take place in the coming years include the following:

 

Area 13 (Thrumster) Sewerage Treatment Plant                               $38,000,000

Southern Arm trunk main Pacific Highway to Bonny Hills                $13,700,000

Southern Arm Trunk Main Cowarra balance tank to Pacific Hwy    $  5,000,000

Thrumster Reclaimed Reservoir                                                        $  3,985,000

New Inlet trunk Main to Cowarra Dam from King Creek                   $12,000,000

Trunk Main Bonny Hills to Kew Reservoir                                         $  6,200,000

Area 15 Reservoir                                                                               $  5,350,000

                                                                                                            $84,235,000

 

Together, this expected investment of around $200 million in water and sewer infrastructure upgrades means the current level of funds held in reserve is expected to not only be exhausted but possible require additional accumulation of reserves, in order to avoid requiring substantial borrowing to fund this infrastructure. This means that it is necessary for Section 64 reserves to remain relatively high for the time being, in preparation for this.

 

Each year, Councils reserve balances are audited as part of Councils year end financial statements, and can be found in Note 6(c). These are available on Councils website.

 

Options

 

This is an information report.

 

Community Engagement & Internal Consultation

 

Resolution 3 from the 19 April 2017 Council meeting requested the General Manager to provide updates on the progress of the financial reserves review to the Finance, Corporate Services and Information Technology Portfolio and to all Councillors via appropriate briefings, prior to a final report being tabled at a future meeting of Council.

 

·    Internal engagement (and review updates) has occurred with:-

·    General Manager

·    Executive Group

·    Chief Financial Officer

·    Portfolio Councillors

·    Councillors – having being provided with a draft report, and participation in a briefing conducted by UTS:CLG on 18 September 2017.

·    Updates on progress of the Independent Review have also been provided as part of the Investments Report presented to Council on 21/06/17, 19/07/17, 16/08/17, and 20/09/17.

·    A Question from Previous Meeting on the Financial Reserves Review was also included in the agenda for the Ordinary Council Meeting on 20/09/2017 as an update.

·    Supplementary briefings to Councillors on S94 Contributions Planning occurred on 1 November 2017 and 8 November 2017.

 

Resolution 4 from the 19 April 2017 Council meeting requested that public education be undertaken that explains why the financial reserves have been established, how they receive income and how they relate to Council’s longer-term plans, including future projects that the reserves are likely to be allocated towards. It is envisaged that the information in this report is provided to satisfy this purpose, with a recommendation that an internal communications plan be developed.

 

Planning & Policy Implications

 

There are no planning and policy implications in relation to this report.

 

Financial & Economic Implications

 

There are no financial and economic implications in relation to this report.

 

Attachments

 

1View. Port Macquarie-Hastings Reserves Review Report - UTS

2View. Key Findings Summary Report - UTS

3View. Council Reserves at 30 June 2017

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.08

 

Subject:     Financial Impact of Cost Shifting from Other Levels of Government

Presented by:  Corporate Performance, Rebecca Olsen

 

 

Alignment with Delivery Program

 

1.2.1 Promote Council participation and build linkages in local, state and federal initiatives, forums and opportunities to support Council’s continued planning for the growth of the region.

 

 

 

RECOMMENDATION

 

That Council note the information contained in the Financial Impact of Cost Shifting From Other Levels of Government report.

 

Executive Summary

 

At the Ordinary Council meeting held on 15 November 2017, Council resolved:

 

RESOLVED:  Alley/Intemann

That Council:

1.       Note the information in this report on the financial impact of cost shifting from other levels of Government.

2.       Request the General Manager provides a revised "Waste Levy" figure for 2017/18 in an updated table of cost shifting at the February, 2018 Council Meeting.

3.       Request the General Manager provide future reports in a format that separate "Federal Government" cost shifting impacts from "NSW State Government" impacts.

4.       Request the General Manager provide in the next Financial Impact of Cost Shifting from Other Levels of Government report in November 2018, at least one detailed example of a cost shifting exercise involving council funded infrastructure that relates to government schools, hospitals, public housing or universities.

5.       Request the General Manager write to:

a)      the Member for Port Macquarie the Hon. Leslie Williams MP;

b)      the Member for Oxley the Hon. Melinda Pavey MP;

c)      the Member for Cowper the Hon. Luke Hartsuyker MP;

d)      the Member for Lyne the Hon. Dr. David Gillespie MP;

e)      The Honourable Courtney Housos, Labor duty MLC for Port Macquarie;

f)       The Honourable Lynda Voltz, Labor duty MLC for Oxley;

g)      Senator Sam Dastyari, Labor duty Senator for Lyne;

h)      Senator Jennifer McAllister, Labor duty Senator for Cowper;

i)        Local Government NSW;

enclosing a full copy of this Financial Impact of Cost Shifting report and request their active assistance in removing this financial burden on our community.

carried:      9/0

For:   Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

This report addresses the requirements of Resolution 2 above, and provides an update in respect of Resolution 5 above.

 

Resolutions 3 and 4 will be addressed in the next Cost Shifting report to Council in November 2018.

 

Discussion

 

The Waste Levy figure for 2017/2018 was originally budgeted at $3,397,357.

This has subsequently been reviewed to $4,800,000. The revised budget is reflected in the January monthly review. Revised Cost Shifting data is below.

The major factors behind this increase is:

·    Increase number of local projects commencing / finishing in 2017/2018 requiring the waste facilities for example Pacific Highway Upgrade and Stingray Creek bridge

·    A large increase in concrete waste.

Cost Shifting Data

 

As per Resolution 5 above, the General Manager wrote to:

 

a)      the Member for Port Macquarie the Hon. Leslie Williams MP;

b)      the Member for Oxley the Hon. Melinda Pavey MP;

c)      the Member for Cowper the Hon. Luke Hartsuyker MP;

d)      the Member for Lyne the Hon. Dr. David Gillespie MP;

e)      The Honourable Courtney Housos, Labor duty MLC for Port Macquarie;

f)       The Honourable Lynda Voltz, Labor duty MLC for Oxley;

g)      Senator Sam Dastyari, Labor duty Senator for Lyne;

h)      Senator Jennifer McAllister, Labor duty Senator for Cowper;

i)        Local Government NSW;

 

To date we have received response from:

·        The Member for Cowper the Hon. Luke Hartsuyker MP;

·        the Member for Lyne the Hon. Dr. David Gillespie MP

 

And these responses are attached for reference.

 

Options

 

This report is for information purposes.

 

Community Engagement & Internal Consultation

 

There has been no community engagement. 

 

Planning & Policy Implications

 

There are no planning & policy implications.

 

Financial & Economic Implications

 

This report discusses the impact of cost-shifting imposed on Council from both the Federal and NSW Governments.

 

This cost-shifting has an effect on Council’s financial position and ability to deliver to the community.

 

 

Attachments

 

1View. David Gillespie MP

2View. Luke Hartsuyker MP

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.09

 

Subject:     Quarterly Budget Review Statement

Presented by:  Corporate Performance, Rebecca Olsen

 

 

Alignment with Delivery Program

 

1.4.2  Manage Council’s financial assets, and provide accurate, timely and reliable financial information for management purposes and provide plain English community reporting.

 

-                                               yi

 

RECOMMENDATION

 

That Council note the Quarterly Budget Review Statement for the December 2017 quarter.

 

 

Executive Summary

 

This report will detail the Quarterly Budget Review Statement (QBRS) for the period to the end of the second quarter of the 2017-2018 financial year (July 2017 to December 2017).

 

Discussion

 

The Quarterly Budget Review Statement (QBRS) is a statutory report prepared in accordance with the Local Government (General) Regulations, Sections 202 & 203.

 

The QBRS presents a summary of Council’s financial position at the end of each quarter.  It is a mechanism whereby the Councillors and the community are informed of Council’s progress against the Operational Plan (original budget) and the last revised budget. It also outlines recommended changes and reasons for major variances.

 

Whilst the Local Government (General) Regulations requires the annual budget to be reviewed on a quarterly basis through this QBRS, Councillors are provided with details of the financial position and associated variances on a monthly exception basis.

 

Attached is the Quarterly Budget Review Statement for the December 2017 quarter for Council’s information, which includes the following components:

 

1.   Statement by the Responsible Accounting Officer on Council’s financial position at the end of the year based on the information in the QBRS.

2.   Budget review of Income and Expenditure in a consolidated format (including performance indicators).

3.   Budget review of the Capital budget.

4.   Budget review of the cash and investments position.

5.   Budget review of contracts and other expenses.

6.   TCorp Ratios in line with the Local Government Code of Accounting Practice.

 

Also attached is a confidential attachment on Consultancy engagements as resolved by Council under Item 09.09 Supply of Services to Council on 21 October 2015. This resolution resolved:

 

1.       To Adopt Option 2 to expand the existing reporting format of the Quarterly Budget Review Statement to include additional categories of consultancy engagements including accounting, audit, legal, planning, architectural, surveying, environmental, IT and HR with individual consultant data to be provided in a confidential attachment.

2.       Commence the reporting regime from the next Quarterly Budget Review Statement.

carried:      8/0

For:   Besseling, Cusato, Hawkins, Intemann, Levido, Roberts, Sargeant and Turner

Against:       Nil

 

This attachment titled “2017-2018 December Quarterly Budget Review Statement - Consultancy Engagements” provides information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct business.  Local Government Act 1993 - Section 10A(2)(c).

 

The year-to-date (YTD) reporting in the QBRS is against the phased budgets, improving the reporting with comparisons to Council’s yearly and quarterly budgets. Actual expenditure amounts exclude commitments.

 

INCOME & EXPENSES

 

The YTD operating result excluding capital items is $49.7m, compared to a YTD budget of $36.3m. A significant amount of this $13.4m (favourable) variance is in timing, including $9.1m across Expenses and is described below.

 

The YTD operating result including capital items is $62.2m, compared to a YTD budget of $46.1m. Most of this $16.1m (favourable) variance is in timing and includes $2.3m in Grants & Contributions and $9.1m across Expenses, with $1.9m in Rates & User Charges mainly due to population growth. These are further described below.

 

The following key variances within the Income and Expense statement are noted:

 

INCOME

 

YTD Actual $130.9m; YTD Budget $124.0m; Variance $6.9m (favourable)

 

Income of $130.9m for the YTD to the end of the second quarter is 105.6% of the YTD budget of $124.0m, representing 68.0% of the $192.4m annual income budget.

 

Key points to note are as follows:

 

1.    Rates & Annual Charges 

 

YTD Actual $89.5m; YTD Budget $87.6m; Variance $1.9m (favourable)

 

Rates & annual charges of $89.5m are ahead of the expected YTD budget of $87.6m, being 102.2% of the YTD budget, and 98.1% of the $91.2m annual budget. The majority of rates are levied in July, with the exception of annual charges for water which are levied quarterly on the Water Notice.

 

The total YTD variance of $1.9m (favourable) mainly comprises of:

 

·    $0.8m (favourable) for general fund rates;

·    $0.6m (favourable) for annual sewer charges;

·    $0.3m (favourable) for domestic waste charges;

·    $0.2m (favourable) for annual water charges.

 

The favourable variances predominately relate to population growth in the area.

 

2.    User Fees & Charges

 

YTD Actual $15.7m; YTD Budget $14.5m; Variance $1.2m (favourable)

 

User fees & charges of $15.7m represent 108.1% of the YTD budget of $14.5m, and 47.6% of the $33.0m annual budget. Note that the annual budget of $33.0m includes the late categorisation adjustment for FESL (which was previously shown under operating grants) against the published budget statement of $32.9m.

 

The total YTD variance of $1.2m (favourable) is primarily made up of:

 

·     $0.6m (favourable) user charges for water consumption attributable to the timing of quarterly water billing notices;

·     $0.5m (favourable) waste management tipping fees subject to demand. Note the corresponding increase in Expenses for the EPA Waste levy;

·     $0.3m (favourable) fees for Planning, DA’s & Building Certification due to the continued increase in building and subdivision activity in the area; and

·     $0.3m (adverse) aerodrome user fees mainly due to the timing of receipt of the fees, monthly in arrears.

 

3.    Interest & Investment Revenue

 

YTD Actual $4.1m; YTD Budget $2.8m; Variance $1.3m (favourable)

 

Interest & Investment revenue of $4.1m against the YTD budget of $2.8m is 147.0% of the YTD budget and 61.8% of the annual budget of $6.6m. This comprises the Interest on Investments for the YTD of $4.0m, with an annual budget of $6.3m and Interest on Overdue Rates for the YTD of $0.1m with an annual budget of $0.3m. The favourable result is primarily due to higher cash levels due to project deferrals and high S94/S64 receipts.  Further information on Investments can be found in the Investment report. 

 

4.    Other Revenues

 

YTD Actual $2.5m; YTD Budget $2.3m; Variance $0.2m (favourable)

 

Other revenues of $2.5m are 108.8% of the $2.3m YTD budget, and 50.7% of the $5.0m annual budget.

 

The total YTD variance of $0.2m (favourable) is primarily made up of income from the sale of Carbon credits.

 

 

5.    Operating Grants & Contributions

 

YTD Actual $6.5m; YTD Budget $6.9m; Variance $0.4m (adverse)

 

YTD Operating grants & contributions are $6.5m compared to the YTD budget of $6.9m. The YTD variance is $0.4m (adverse) or 94.4% of the YTD budget, and the YTD actuals are 34.4% of the annual budget of $18.9m.

 

The total YTD variance of $0.4m (adverse), all due to timing, mainly comprises of the following:

 

·     $0.1m (adverse) Floodplain Management Plan Implementation;

·     $0.1m (adverse) North Brother Catchment Flood Study;

·     $0.1m (adverse) Wrights Creek/Hibbard Floodway;

·     $0.1m (adverse) Library Subsidy;

·     $0.1m (adverse) Pensioner Rates subsidy; and

·     $0.1m (favourable) Waste grant for Better Recycling.

 

6.    Capital Grants & Contributions

 

YTD Actual $12.5m; YTD Budget $9.8m; Variance $2.7m (favourable)

 

YTD income from capital grants and contributions is $12.5m against the YTD budget of $9.9m, and represents 33.4% of the $37.5m annual budget. The YTD variance of $2.6m (favourable) is further dissected into grants and contributions and is discussed below:

 

a.    YTD Capital grant income is below the YTD budget by $3.5m. The main variances as follows, are due to timing:

 

·    $0.9m (adverse) Flynns Beach Seawall;

·    $0.9m (adverse) Bulli Creek Bridge Replacement;

·    $0.5m (adverse) Wauchope CBD Pedestrian Design & Construction;

·    $0.4m (adverse) Port Macquarie Aerodrome Terminal Building;

·    $0.2m (adverse) Batar Creek Bridge;

·    $0.2m (adverse) Coastal/Estuary Management Plan;

·    $0.2m (adverse) Boundary Street Flood Access;

·    $0.1m (adverse) Lake Cathie Accessible Fishing Platform;

·    $0.1m (adverse) Shared Path Ocean Drive, Pacific Highway to Glen Haven Drive; and

·    $0.4m (favourable) Wauchope Aquatic Pool upgrade, funding received earlier than expected (timing issue).

 

b.   YTD Capital contribution income is above the YTD budget by $6.1m.  Capital Contributions comprise two elements, cash and non-cash. The cash element is Section 64 & 94 Developer Contributions. The second element is non-cash contributions, being Developer provided assets.

 

·   YTD Cash income is $11.8m, against the YTD budget of $5.7m.  This equates to 65.6% of the annual budget of $18.0m. The variance is due to the continuing increased subdivision and building activity in the area.

·   Non-cash contributions primarily represent dedicated assets from Developers and to date none have been received for capitalisation.

 

 

EXPENSES

 

YTD Actual $68.8m; YTD Budget $77.8m; Variance $9.0m (favourable)

 

1.   Employee costs

 

YTD Actual $21.0m; YTD Budget $23.7m; Variance $2.7m (favourable)

 

YTD employee costs are $21.0m versus the YTD budget of $23.7m, creating a favourable variance of $2.7m. As at the end of this quarter, this equates to 88.7% of the YTD budget, and 41.8% of the annual budget of $50.2m.

 

Variances are largely due to unfilled positions and timing differences that are contingent upon when employees take their leave and the duration of that leave.

 

Other variances include:

·     $0.4m (favourable) Workers Compensation. This varies depending on the number of injury claims. The workers’ compensation premium remains below the budget. It is deemed prudent to keep the budget at this level, as injury claims determine the actual premium. PMHC actively works to keep claims as low as possible and this is represented by a low claims history.

 

2.   Borrowing costs

 

YTD Actual $1.6m; YTD Budget $1.6m; Variance $0.0m

 

3.   Materials & Contracts

 

YTD Actual $17.4m; YTD Budget $23.2m; Variance $5.8m (favourable)

 

Expenditure to the end of the second quarter is $17.4m, which is 75.1% of the YTD budget of $23.2m, and 40.4% of the annual budget of $43.0m. The YTD variance of $5.8m (favourable) is mainly due to timing, unless stated otherwise. The main variances are:

 

·    $2.0m (favourable) Street Lighting LED upgrade, this is underway.

·    $1.2m (favourable) Waste: across various maintenance projects;

·    $0.4m (favourable) Water: across various maintenance projects;

·    $0.3m (favourable) Sewer: across various maintenance projects;

·    $0.7m (favourable) Natural Resources: across various maintenance projects;

·    $0.4m (favourable) Digital Technology: $0.3m (favourable) ICT Infrastructure and $0.1m (favourable) Authority Asset Management System;

·    $1.5m (adverse) Transport & Traffic: $1.1m (adverse) Block Grant & $0.4m (adverse) Sealed Roads spending earlier than expected due to a readily available contractor & ideal weather conditions.

 

4.   Other Expenses

 

YTD Actual $6.2m; YTD Budget $6.8m; Variance $0.6m (favourable)

 

The amount expended of $6.2m for Other Expenses is 91.3% of the YTD budget of $6.8m, and 47.5% of the annual budget of $13.1m. The YTD variance of $0.6m (favourable) is predominately made up of:

 

·    $0.5m (favourable) Electricity & Street Lighting expenses, noting that the payment for these services is made a month in arrears;

·    $0.2m (favourable) Land Valuation Fee, annual invoice not yet received; and

·    $0.3m (adverse) Section 880 Waste Levy, increased usage of waste depots, noting the corresponding increase in waste tipping fees as stated above.

 

5.   Net loss from disposal of assets

 

YTD Actual $0.3m; YTD Budget $0.3m; Variance $0.0m

 

This section relates to the net profit or loss, which occurs from either the sale of assets, such as plant items or land or, disposal of old assets following capitalisation when an asset is renewed:

 

Net profit on sale on assets                                          $23k

Sale Proceeds received, yet to be processed

($315k for land and $23k for plant and equipment)  $338k

Total                                                                            $361k

 

CAPITAL EXPENDITURE (excluding Loans)

 

YTD Actual $24.4m; YTD Budget $48.0m; Variance $23.6m (favourable)

 

This section includes a comparison of the actual result against the phased capital expenditure budget. Note that the total carry-over budget from 2016-2017 is $19.0m, of which $16.6m is capital, and the remaining balance of $2.4m is operating expenditure.

 

To the end of the second quarter and excluding the Loan repayments, $24.4m was expended being 51.0% of the YTD budget of $48.0m, and 19.3% of the annual budget of $126.8m. The YTD ‘under-spend’ is $23.6m. In addition to this expenditure, there are commitments for works in the order of $10.2m.

 

As a comparison to the YTD expenditure to the end of the second quarter in 2016-2017, a total of $33.1m (excluding loan repayments), was expended being 65.0% of the YTD budget of $50.9m and 31.1% of the annual budget of $106.5m.

 

The key variances are detailed below. Of these, Council anticipates most to be underway or complete at 30 June 2018.

 

General Fund - YTD Actuals $20.4m; YTD Budget $34.5m, YTD underspend $14.1m

 

General Fund has expended $20.4m of the $34.5m YTD budget which equates to 59.2% and is 26.6% of the annual budget of $76.9m. The YTD ‘under-spend’ is $14.1m with main ‘under-spends’ noted below:

 

·    $2.4m Developer Provided Assets – No Developer provided assets have been capitalised at this stage as the relevant information has not been received;

·    $1.7m Flynns Beach – Upgrading of Seawall – multi-year project, behind schedule, anticipate awarding the design and construction tender early in 2018;

·    $1.2m Wauchope Pool Upgrade – on-track, variance due to timing;

·    $1.1m Capital Computer Projects – This is a multi-year project and is currently on target, due for completion late April 2018. Authority v7.0 upgrade complete, Skype for Business is in the testing phase and due for deployment February 2018, Wifi upgrades have commenced with access points being fitted, network switch upgrades are completed;

·    $1.0m Bulli Creek Bridge Replacement – This is on target, construction planning complete. Services have been relocated and the construction phase has commenced;

·    $0.7m Wauchope CBD Pedestrian Facility – This is a multi-year project with the design complete and construction phase imminent;

·    $0.6m Beechwood Road Reconstruction – Riverbreeze Drive to Rosewood – On target. Project scope increased to include Riverbreeze intersection.  Construction commenced September 2017, but impacted by difficult ground conditions & some wet weather;

·    $0.5m Batar Creek Bridge Replacement – Design & construction tender awarded, design contractor behind schedule. Targeting site establishment early in 2018; and

·    $0.5m Stormwater Renewal Program – Project planning is finalised with request for quote documentation advertised in November.  Project to be completed within the financial year.

 

There is one project ahead of the YTD budget being:

 

·    $1.3m High Traffic Resurfacing – a readily available contractor & ideal weather conditions;

 

Waste - YTD Actuals $0.0m; YTD Budget $0.3m, YTD underspend $0.3m

 

The YTD ‘under-spend’ of $0.3m mainly relates to:

 

·    $0.1m Cairncross Upgrade & Expansion – Purchase orders have fully committed this project budget.

·    $0.1m Kingfisher Waste Depot – This project is being monitored, the project scope will be determined pending confirmation.

 

Water - YTD Actuals $2.1m; YTD Budget $6.1m, YTD underspend $4.0m

 

The YTD ‘under-spend’ for Water against the YTD budget totals $4.0m, being 34.4% of the YTD budget, with key ‘under-spends’ noted below:

 

·    $1.7m Thrumster RW Interim Supply – project commenced;

·    $0.7m Beechwood Rosewood Reservoir – This project is on target, the design is nearing completion;

·    $0.4m Sancrox Reservoir Trunkmain to Area 13 - On target, design and pre-construction underway;

·    $0.4m Reclaimed Water – Area 14 Trunk Main Outlet – Staged delivery, tender for stage 1 awarded;

·    $0.2m Developer Provided Water Assets - No Developer provided assets have been capitalised at this stage as the relevant information has not been received.

·    $0.2m Port dam 33kv Switchgear Upgrade - On target, design and pre-construction underway, tender to be released by the end on January 2018.

 

Sewer - YTD Actuals $1.9m; YTD Budget $7.1m, YTD underspend $5.2m

 

The Sewer section has a YTD budget ‘under-spend’ of $5.2m being 26.5% of the YTD budget. The main ‘under-spends’ are:

 

·    $0.4m Small Towns Sewer Scheme Long Flat - behind schedule, review of environmental factors & tender documentation complete;

·    $0.4m Area 14 Reclaimed Water Trunk Main Upgrade - on target, staged delivery, tender for construction of first stage awarded;

·    $0.4m Port Macquarie Pump Station no.71 & rising Main - on target, design continuing;

·    $0.4m Small Towns Sewer Scheme Telegraph Point - behind schedule, review of environmental factors & tender documentation complete;

·    $0.4m Small Towns Sewer Scheme Comboyne - behind schedule, review of environmental factors & tender documentation complete;

·    $0.5m Developer provided assets – No Developer provided assets have been capitalised at this stage as the relevant information has not been received.

·    $1.5m Kew/Kendall Sewer Treatment Plant Area 15 – This is unlikely to commence until next financial year.

 

TCorp Ratios

 

Last year the presentation methodology of all ratios was reviewed to ensure that the reported ratio is a projected year end result. This projection is based on approved full year budget wherever possible, or where this is not possible, it is based on an estimated year end position.  The methodology is indicated in the table attached.

 

Operating Performance Ratio

 

The Operating Performance ratio is often considered the most important ratio for Council to meet.  The projected result as at December 2017 includes all approved adjustments to budgets up to and including the December Council meeting.

 

There has been a deterioration in this ratio since the original approved budget and Council is closely monitoring budgets to include any savings in future monthly budget reviews.  The deterioration is primarily due to the inclusion in the budget of $2m for energy efficient street lighting. As these are not council’s assets any expenditure has a negative effect on Council’s operating performance ratio.  It should be noted however, that in future years the decrease in electricity costs for this lighting will have a positive effect on this ratio. 

 

This ratio may be impacted by year end accruals.

 

Rates and Annual Charges Outstanding Ratio

 

Considerable work has been, and continues to be undertaken to enhance this ratio and the ratio achieved for the 2016-2017 financial year (4.85%) was the best Council has produced since 2006. The current forecast is an estimated 4.61%. It should be noted that with reduced outstanding rates comes reduced income from interest charged on outstanding rates and annual charges which then negatively affects other ratios such as Operating performance and Own source revenue.  The benchmark for this ratio is less than 5% which Council now meets.

 

Building and Infrastructure Renewals Ratio

 

The building and infrastructure renewals ratio is a difficult ratio for Council to meet as the definition of a renewal is “Works to replace existing assets or facilities with assets or facilities of equivalent capacity or performance capability”.  At this early stage the ratio has been left at the ratio calculated for the original budget.

 

Council often increases the capacity of an asset whilst undergoing a renewal but this portion of the cost is not considered a renewal. 

 

The ratio does not consider the need for Council to spend on new infrastructure, and is also adversely impacted by gifted assets due to the increase in depreciation as a consequence of these assets.

 

For a Council to increase its renewal spend to improve this ratio performance may have an impact on the funds available for new assets, such as new footpaths etc.

 

The Office of Local Government has released a “Special Schedule 7 Appendix B - Examples of Renewal and Rehabilitation Costs and Activities” which specifies that costs previously regarded as new assets can be classified as renewals where they relate to the modern engineering equivalent.

 

Infrastructure Backlog

 

This ratio has been estimated based on historical percentages applied to budget spend. Significant reseals were undertaken in 2016/17 and are expected to be continued in this financial year and it is anticipated that this expenditure will address a portion of Council’s infrastructure backlog. 

 

Assets Maintenance Ratio

 

Significant work was done in prior years to calculate the actual amount of “required” maintenance for purposes of calculating this ratio. This figure is currently forecast at 0.93 for this financial year.  At this early stage of the year the ratio has been left at the ratio calculated for the original budget.

 

The Office of Local Government (OLG) definition of required maintenance are those costs identified in the Asset Management Plans (for the reporting period) of routine activities that should be undertaken to sustain the asset in a functional state, ensuring the assets reach the predicted useful life, excluding rehabilitation or renewal. Therefore, if additional road reseals/renewals continue to occur it is expected that the required maintenance may reduce, improving this ratio.

 

Furthermore the OLG has released a “Special Schedule 7 Appendix A - Examples of Maintenance and Operating Activities” which will assist Council in ensuring the correct types of expenditure are included in this ratio.

 

Options

 

Council may adopt the recommendation as proposed or amend as required.

 

Community Engagement & Internal Consultation

 

Not applicable.

 

Planning & Policy Implications

 

Nil.

 

Financial & Economic Implications

 

There are no financial and economic implications in this report. The variances between budget and actual results continue to be monitored.

 

Attachments

 

1View. December 2017 Quarterly Budget Review Statement

2View. Confidential Consultancy Engagements December 2017 (Confidential)

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.10

 

Subject:     Monthly Financial Review for January 2018

Presented by: Corporate Performance, Rebecca Olsen

 

Alignment with Delivery Program

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

 

 

RECOMMENDATION

 

That Council adopt the adjustments in the “Financial and Economic Implications” section of the Monthly Financial Review Report for January 2018.

Executive Summary

 

This report will detail the monthly budget adjustments to 31 January 2018.

 

The Council adopted budget position as at 1 July 2017 was a shortfall of $586,858. 

The approved budget adjustments since that time have reduced this shortfall position to $64,023. The budget adjustments included in this report will maintain the budget position at a shortfall of $64,023.

 

Discussion

 

Each month, Council’s budgets are reviewed by Managers and Directors with any required adjustments reported.  The purpose of this report is to provide Council with an up to date view of the current actual financial position in comparison to the original adopted 2017-2018 budget along with the proposed movement of funds to accommodate any changes.

 

Any overspends greater than $50,000 and 2% of the project budget are reviewed and approved by the Executive Group, being their function to oversee operational activities and approve operational actions.

 

Monthly Budget Review Summary

 

 

Original Budget as at 1 July 2017

 

Shortfall

 

($586,858)

Plus adjustments:

 

 

July Review

Balanced

$0

August Review

Surplus

$267,217

September Review

Shortfall

($34,492)

October Review

Balanced

$0

November Review

Surplus

$290,110

December Review

-

-

January Review

Balanced

$0

Forecast budget position for 30 June 2018

Shortfall

($64,023)

The following adjustments reflect budget movements as a result of over-expenditure reviews, transfers between accounts, grant funding, transfer from reserves and additional receipts etc. that have no impact on the budget position (for example additional income has an associated expenditure budget):

 

Description

Notes

Funding Source

Amount

Grant Funds

1

Grant/Reserve/Env Levy

$181,226

Reserve Transfers

2

Reserve

$1,696,902

Transfer between projects

3

S94/Revenue

$52,288

Dividend Payment

4

Revenue

$1,925,430

Council Report

5

Reserve

$123,856

Additional Income

6

Revenue

$18,000

Total

 

 

$3,997,702

1.    Grant funding.

The total increase in project value for 2017-2018 is $181,226.

 

Council project

Grant provider

Amount

Funding

Comments

Section

Building Better Regions Fund – Neon Summer

NSW Department of Industry, Innovation & Science

 $19,102

Grant

100% Grant

Glasshouse

Building Better Regions Fund – PM Hastings Skills Audit

NSW Department of Industry, Innovation & Science

  $50,524

Grant/Reserve

50/50 Grant

Economic Development

Lake Cathie-Illaroo Road Revetment Wall Funding Model

NSW Office of Environment & Heritage

  $37,600

Grant/Env Levy

50/50 Grant

Natural Resources

Hastings River Additional Streamflow & Rainfall Gauges

NSW Office of Environment & Heritage

  $50,000

Grant/Env Levy

2:1 Grant

Natural Resources

Tabel Street School Zone

Roads and Maritime Services

   $24,000

Grant

100% Grant

Transport & Traffic

TOTAL

 

 $181,226

 

 

 

 

 

2.       Reserve Transfers

 

There has been adjustments this month that increase the level of some reserves and reduce the level of others.

 

Project Name

Reserve

T/f from (reduction) T/f To (increase)

Other Funding

Reserve Amount

Comments

Removal of Asbestos – 120 Gordon Street, Port Macquarie

Working Capital

T/f from

$20,000 T/f from another project

   ($100,000)

As part of a third party development at 120 Gordon St, PM Council agreed to provide site access over an existing Council owned gravel laneway area. Access was agreed on the basis that the DA applicant form and seal this area as a roadway.  During initial site excavation works on Council's site, asbestos containing material (ACM) was discovered.  Due to the proximity of this site to existing residential and commercial properties, the removal of the ACM from Council's site was identified as the most appropriate response.

Oxley Oval – Sporting Infrastructure Upgrade

Working Capital

T/f From

$20,000 S94

   ($280,000)

This budget allocation is in line with Item 10.04 to the December 2017 Ordinary Council Meeting.

Sale of Carbon Credits

Waste Management

T/f To

 

     $133,098

Council received income from the sale of carbon Credits.  This income is contained within the waste fund.

Waste Section 880 Levy

Waste Management

T/f from

 

($1,300,000)

This budget has been increased to cover an increased number of local projects commencing/finishing requiring waste facilities such as Stingray Creek Bridge and Pacific Highway upgrade.  In addition, a large increase in concrete waste due to complications with the local crushing contractor has also contributed to this increase.  Council is required to pay $76.70/tonne for waste entering the site.

 

Wauchope Transfer Station

Waste

T/f from

 

   ($150,000)

The Wauchope Transfer Station is on a constrained site, with the growing volumes of material stockpiles continually encroaching onto traffic lanes.  Council has recently purchased neighboring land to enable this expansion and to allow for better stockpile management.

Net Transfer from reserves

 

($1,696,902)

 

 

3.    Transfer between projects

 

 

Project Name – Funds transferred to

 

 

Project Name – Funds Transferred from

 

Budget

 

Funding

 

Comments

 

PM Airport Environmental Approvals

 

PM Airport Improvements

        $20,000

 

Airport Reserve

 

This is to cover the continuation of the environmental approvals project (i.e.Biocertification and EPBC Act referral) that is required for both current operation and securing the long term future of the Airport through planned developments.

Natural Resources Salaries

Sealed Road Maintenance

 

Parks Maintenance

 

Development Assessment (additional income)

        $20,665

 

       

  $5,811

                  

 

  $5,812

Revenue

 

Council has employed an Environmental Assessment Officer that is to be allocated across a number of areas.  This adjustment covers the general fund component for the remainder of the year.

 

Total

 

$52,228               

 

 

 

4.    Dividend Payments

 

At the meeting of Council on the 13 December 2017 it was resolved:

 

RESOLVED:  Hawkins/Intemann

 

That Council:

1.       Note the achievement of substantial compliance with each of the six best practice guidelines (NSW Best Practice Management Guidelines for Water Supply and Sewerage, August 2007) of:

(a)     Strategic Business Planning

(b)     Pricing

(c)     Water Conservation

(d)     Performance Reporting

(e)     Integrated Water Cycle Management

2.       Authorise the application to the NSW Government for approval to pay a dividend of $896,454 to the General Fund from the surplus in Water Supply operations for the 2016-2017 financial year.

3.       Authorise the payment of $99,606 for tax equivalents to the general fund from the Water Supply operations for the 2016-2017 financial year.

4.       Authorise the application to the NSW Government for approval to pay a dividend of $836,433 to the General Fund from the surplus in the Sewerage Fund for the 2016-2017 financial year.

5.       Authorise the payment of $92,937 for tax equivalents to the general fund from the Sewerage Fund for the 2016-2017 financial year.

6.       Determine that if successful in its applications that the dividend will be quarantined for stormwater related works.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

Council has now received approval from the Department of Industry to pay a best practice dividend from both the water supply and sewerage funds for 2017/18.

 

In line with the resolution above these funds have been quarantined for stormwater works and transferred to the stormwater reserve.

 

5.    Council Reports

 

At the meeting of Council on the 13th December 2017 is was resolved.

 

RESOLVED:  Turner/Hawkins

 

That Council:

1.       Provide in principle support to projects that mark the 2018 John Oxley Bicentenary.

2.       Set up a Bicentenary Working Group of the Cultural Steering Group (BWG) to assist with the strategy, the organisation and the implementation of the Bicentenary program.

3.       Enable the ad hoc participation of suitably qualified persons (relevant experience and expertise) onto the BWG.

4.       Request the BWG provides regular reporting to Council through updates via the Cultural Steering Group.

5.       Workshop alternative wording for the draft Bicentenary logo with the BWG.

6.       Establish a new line item in both the 2017/18 and 2018/19 Operational Plans – Bicentenary Activities.

7.       Re-allocate GL 41433 ‘WW1 and ANZAC Commemoration’ with a current budget of $43,856 to ‘Bicentenary Activities’.

8.       Transfer $80,000 from the Cultural reserve to Bicentenary Activities.

9.       Approve a dedicated Bicentenary Grants stream from the current Community Grant budget.

10.     Note that the John Oxley Memorial previously located at Town Beach is currently being rejuvenated for the John Oxley Bicentenary, and once complete, will be relocated in early 2018 to a new site in the vicinity that has significantly better pedestrian access.

carried:      8/0

For:   Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

The budget transfers mentioned in this resolution have been included in the adjustments this month.

 

6.    Additional Income

 

Council has entered into a new contract for bus shelter advertising.  The income collected ($18,000) will be used on the maintenance of the bus shelters.

 

Options

 

Council may adopt the recommendation as proposed or amend as required.

 

Planning & Policy Implications

 

There are no planning and policy implications.

 

Financial & Economic Implications

 

Attached to the report for information is each individual budget adjustment by Division and Section. The budget movements within this report maintain the current budget position to a shortfall of $64,203.

Responsible Accounting Officer Statement

The approved original budget result for 2017-2018 was a shortfall of $586,858.  The budget adjustments in this report improve the current budget position to a shortfall of $64,023.  The shortfall position is considered an un-satisfactory result for the year, and accordingly budgets will be closely monitored during the remainder of the year.

 

 

Attachments

1View. January 2018 budget Review

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.11

 

Subject:     Investments - December 2017

Presented by:  Corporate Performance, Rebecca Olsen

 

 

Alignment with Delivery Program

 

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

 

 

RECOMMENDATION

 

That Council note the Investment Report for the month of December 2017.

 

 

Executive Summary

 

·    Total funds invested as at 31 December 2017 equals $263,332,001.

·    The actual year-to-date investment income of $4,001,111 represents 63.20% of the total annual investment income budget of $6,330,600.

·    In line with Council’s Investment Policy, the total portfolio has performed above benchmark levels.

 

Discussion

 

Overview

 

Councils (including Port Macquarie-Hastings Council) provide a broad range of services and associated infrastructure to their communities.

 

These services include (but are not limited to) the following:

 

-     Water and Sewer services;

-     Waste services;

-     Port Macquarie Regional Airport;

-     Cemeteries;

-     Roads and Bridges;

-     Various Recreation and Cultural facilities.

 

The Port Macquarie-Hastings area is a high growth centre of the North Coast region and is expected to accommodate a significant proportion of regional growth over the next two decades. The population will grow from 79,114 in 2016 to 102,926 in 2036. As a consequence of this growth, Council must not only provide services to the existing community and maintain existing assets, but Council must also plan for future maintenance and capital expenditure on the infrastructure that will be needed to support the community, business and visitors to the area into the future.

 

Council holds cash reserves as an alternative to (or to supplement) borrowing. As at June 2017, Council held $251 million in cash and reserves. Predominantly, these reserves are all allocated for specific purposes, with 70% of these reserves legally only being able to be used for the purpose for which they were collected (for example for water and sewer). The remaining reserves are also predominantly held for specific purposes (for example, for the development of the Airport, or to fund projects which have already commenced). The balances of these reserves are audited annually and published in Council’s financial statements.

 

The level of reserves held by Port Macquarie-Hastings Council is not disproportionate to other similar Councils, noting that different Council’s provide different services. Not all Councils provide Water and Sewer services for example which require significant capital investment.

 

The balances of these reserves are invested until such time as they are required. This report details how Council invests these reserves to ensure the appropriate balance between risk and financial return (through interest).

 

Current Investments

 

Council is required to undertake investments in accordance with section 625 of the Local Government Act 1993.  This report provides details of Council’s investments, and certifies that all funds that Council has invested as at 31 December 2017, comply with this Act.

 

All investments have been made in accordance with the Act and Regulations, and Council’s Investment Policy.

 

As at 31 December 2017, the investments held by Council totalled $263,332,001 and were attributed to the following funds:

 

 

 

Whilst the current level of investments remain high, these largely relate to funds which have legal restrictions (for example water and sewer), or for funds held for specific purposes.

 

These funds may be spent in the shorter or longer term depending on the required timing of future works. The totals will fluctuate dependent on the status of individual projects.

 

 


 

Investments by Fund – as at 31 December 2017

 

 

 

 

 

Portfolio Performance

 

At the Ordinary Council meeting held on 15 November 2017, Council resolved as follows:

 

09.10  Investments - October 2017

RESOLVED:  Hawkins/Griffiths

That Council:

1.       Note the Investment Report for the month of October 2017.

2.       Request the General Manger submit a report to a future Council Meeting (before June 2018) after review by the Audit, Risk & Improvement Committee that examines alternative investment options that are likely to give Council a higher return on its investments whilst remaining within approved risk parameters.

3.       Request the General Manager to submit a report to the February 2018 meeting of Council that reviews the investment income budget for the 2017/2018 Financial Year.

carried:      9/0

For:   Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

In reference to Resolution #3 above, a revised budget was calculated and estimated at an additional $1,000,000. This adjustment was incorporated in the monthly November Financial review council paper and adopted by Council on 13 December 2017.

 

The estimated budget will continue to be revised for the remainder of the year and adjusted as necessary.

 

·    Council’s total investment portfolio performance was 1.28% above the benchmark (3.04% against 1.76%).  Benchmark being the Bank Bill reference rate as at 29 December 2017 as identified on www.bloombergindices.com.

·    The actual year-to-date investment income of $4,001,111 represents 63.20% of the revised total annual investment income budget of $6,330,600.

 

 

 

The year-to-date actual reflects total earning including both cash and accruals.

 

Investment Portfolio Mix

 

Council’s current portfolio is made up of cash and term deposits. The total term deposits represent 91.90% of the total investment portfolio.  As at 31 December 2017, the total investment portfolio was $263,332,001 which is down from $263,672,218 as at 27 November 2017. This consists of term deposits of $242,000,000 and cash $21,332,001.

 

 

 

Term Deposits - Current month $242,000,000 - Prior month $243,000,000

 

Council’s Investment Policy identifies the maximum amounts that can be invested in term deposits within the various maturity constraints and the amounts which can be held with various institutions based on their respective credit ratings.

 

Council’s current term deposit portfolio mix as at 31 December 2017 is as follows:

 

Term to Maturity

 

This table as at 31 December 2017 shows the amounts invested by various maturity profiles. These are in accordance with limits established by Council’s Policy.

 

Table 1:

 

 

 

 

Overall Portfolio Credit Framework

 

All institutions that Council invests with are rated by acknowledged credit rating agencies, Standard & Poors and Moody’s and Fitch.  Council policy specifies limits that can be invested within each rating band. These limits are to help avoid over exposure in any rating category. The tables below group the amounts held with various institutions based on their respective credit ratings, and compares the total to the maximum limit set for each credit rating category. 

 

As previously advised, Standard & Poors and Moody’s downgraded a number of Australian financial institutions which affected the limits held within both the rating and institutional limit frameworks, as required within Council’s Investment Policy.  The Investment Policy has now been altered to accommodate such an event in the future.

 

Standard & Poors

 

As previously identified, as a result of the downgrading by Standard and Poors of Bank of Queensland and Bendigo & Adelaide Bank from the A to the BBB category, the BBB category is in excess of the policy’s maximum limits.

 

Table 2a:

 

 

Moody’s

 

Whilst Moody’s also downgraded a number of institutions, no institution was required to move to a different rating band. Council therefore remains within policy limits.

 

Table 2b:

 

 

Cash - Westpac Business Cash Reserve Account

Current month $21,332,001 - Prior month $20,672,218 (27 Nov 2017)

 

This is not available unrestricted cash.

 

This is a maxi account which the Council uses as a cash management tool only. Funds are transferred in and out of this account daily prior to investment, given its higher rate of interest than the general payment account. Levels in this account vary dependent on the time of month and rate payer/creditor cycle.

 

 


 

Summary of Net Investment Movements –27 November 2017 to 31 December 2017

 

 

It should be noted that funds currently within the Westpac Business Cash Reserve Account are attracting an interest rate of 2.2% being the current cash rate plus 0.7% (based on the cash rate drop on 3 August 2016), which performs better than the benchmark (1.76% 29 December 2017).

 

The largest sector of the portfolio is the term deposit allocation of $242,000,000 (last month $243,000,000) or 91.90% of the total.

 

Investment Portfolio by Maturity Date - as at 31 December 2017

 

 

Options

 

This is an information report.

 

Community Engagement & Internal Consultation

 

Council uses the services of an independent financial advisor, on an as needs basis with investments. The investments placed this month were term deposits. At least three quotes were obtained from financial institutions in line with Council’s Investment Policy. The services of an independent financial advisor were not required. Council obtains regular updates regarding market activities positions from various institutions.

 

Planning & Policy Implications

 

There are no planning and policy implications.

 

Financial & Economic Implications

 

Benchmark and budget levels have been met on a year to date basis. On an annual basis, if benchmark levels are not reached, then this may result in budget cuts in other areas to fund the shortfall.

 

Council’s total investment portfolio performance for 31 December 2017 is 1.28% above the benchmark (3.04% against 1.76%) and year to-date income is 63.20% of the total annual budget. 

 

It should be noted that investment income is noted as a gross amount. Section 97(5) of the Local Government Act 1993 indicates that any security deposit held with Council must be repaid with interest accrued. These security deposits will only relate to bonds held for security to make good damage done to works.

 

The overall investment income will be adjusted at financial year end by the total interest refunded on repayment of bonds. As Council constantly receives and refunds bonds, it is difficult to accurately determine the quantum of these refunds. This financial year to date Council has refunded bonds with an associated interest component of $28,876.79 which will be monitored and advised monthly.

 

Certification

 

I hereby certify that the investments listed within this report have been made in accordance with Section 625 of the Local Government Act 1993, clause 212 of the Local Government (General) Regulation 2005 and Council’s Investment Policy.

 

 

Karen Rowe

Responsible Accounting Officer

 

Attachments

 

Nil

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.12

 

Subject:     Investments - January 2018

Presented by:  Corporate Performance, Rebecca Olsen

 

 

Alignment with Delivery Program

 

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

 

 

RECOMMENDATION

 

That Council note the Investment Report for the month of January 2018.

 

 

Executive Summary

 

·    Total funds invested as at 31 January 2018 equals $261,077,683.

·    The actual year-to-date investment income of $4,671,936 represents 73.80% of the total annual investment income budget of $6,330,600.

·    In line with Council’s Investment Policy, the total portfolio has performed above benchmark levels.

 

Discussion

 

Overview

 

Councils (including Port Macquarie-Hastings Council) provide a broad range of services and associated infrastructure to their communities.

 

These services include (but are not limited to) the following:

 

-     Water and Sewer services;

-     Waste services;

-     Port Macquarie Regional Airport;

-     Cemeteries;

-     Roads and Bridges;

-     Various Recreation and Cultural facilities.

 

The Port Macquarie-Hastings area is a high growth centre of the North Coast region and is expected to accommodate a significant proportion of regional growth over the next two decades. The population will grow from 79,114 in 2016 to 102,926 in 2036. As a consequence of this growth, Council must not only provide services to the existing community and maintain existing assets, but Council must also plan for future maintenance and capital expenditure on the infrastructure that will be needed to support the community, business and visitors to the area into the future.

 

Council holds cash reserves as an alternative to (or to supplement) borrowing. As at June 2017, Council held $251 million in cash and reserves. Predominantly, these reserves are all allocated for specific purposes, with 70% of these reserves legally only being able to be used for the purpose for which they were collected (for example for water and sewer). The remaining reserves are also predominantly held for specific purposes (for example, for the development of the Airport, or to fund projects which have already commenced). The balances of these reserves are audited annually and published in Council’s financial statements.

 

The level of reserves held by Port Macquarie-Hastings Council is not disproportionate to other similar Councils, noting that different Council’s provide different services. Not all Councils provide Water and Sewer services for example which require significant capital investment.

 

The balances of these reserves are invested until such time as they are required. This report details how Council invests these reserves to ensure the appropriate balance between risk and financial return (through interest).

 

Current Investments

 

Council is required to undertake investments in accordance with section 625 of the Local Government Act 1993.  This report provides details of Council’s investments, and certifies that all funds that Council has invested as at 31 January 2018, comply with this Act.

 

All investments have been made in accordance with the Act and Regulations, and Council’s Investment Policy.

 

As at 31 January 2018, the investments held by Council totalled $261,077,683 and were attributed to the following funds:

 

 

 

Whilst the current level of investments remain high, these largely relate to funds which have legal restrictions (for example water and sewer), or for funds held for specific purposes.

 

These funds may be spent in the shorter or longer term depending on the required timing of future works. The totals will fluctuate dependent on the status of individual projects.

 

 


 

Investments by Fund – as at 31 January 2018

 

 

 

 

 

Portfolio Performance

 

At the Ordinary Council meeting held on 15 November 2017, Council resolved as follows:

 

09.10  Investments - October 2017

RESOLVED:  Hawkins/Griffiths

That Council:

1.       Note the Investment Report for the month of October 2017.

2.       Request the General Manger submit a report to a future Council Meeting (before June 2018) after review by the Audit, Risk & Improvement Committee that examines alternative investment options that are likely to give Council a higher return on its investments whilst remaining within approved risk parameters.

3.       Request the General Manager to submit a report to the February 2018 meeting of Council that reviews the investment income budget for the 2017/2018 Financial Year.

carried:      9/0

For:   Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against:       Nil

 

In reference to Resolution #3 above, a revised budget was calculated and estimated at an additional $1,000,000. This adjustment was incorporated in the monthly November Financial review council paper and adopted by Council on 13 December 2017.

 

The estimated budget will continue to be revised for the remainder of the year and adjusted as necessary.

 

·    Council’s total investment portfolio performance was 1.28% above the benchmark (3.02% against 1.74%).  Benchmark being the Bank Bill reference rate as at 31 January 2018 as identified on www.bloombergindices.com.

·    The actual year-to-date investment income of $4,671,936 represents 73.80% of the revised total annual investment income budget of $6,330,600.

 

 

 

The year-to-date actual reflects total earning including both cash and accruals.

 

Investment Portfolio Mix

 

Council’s current portfolio is made up of cash and term deposits. The total term deposits represent 91.54% of the total investment portfolio.  As at 31 January 2018, the total investment portfolio was $261,077,683 which is down from $263,332,001 as at 31 December 2017. This consists of term deposits of $239,000,000 and cash $22,077,683.

 

 

 

Term Deposits - Current month $239,000,000 - Prior month $242,000,000

 

Council’s Investment Policy identifies the maximum amounts that can be invested in term deposits within the various maturity constraints and the amounts which can be held with various institutions based on their respective credit ratings.

 

Council’s current term deposit portfolio mix as at 31 January 2018 is as follows:

 

Term to Maturity

 

This table as at 31 January 2018 shows the amounts invested by various maturity profiles. These are in accordance with limits established by Council’s Policy.

 

Table 1:

 

 

 

Overall Portfolio Credit Framework

 

All institutions that Council invests with are rated by acknowledged credit rating agencies, Standard & Poors and Moody’s and Fitch.  Council policy specifies limits that can be invested within each rating band. These limits are to help avoid over exposure in any rating category. The tables below group the amounts held with various institutions based on their respective credit ratings, and compares the total to the maximum limit set for each credit rating category. 

 

As previously advised, Standard & Poors and Moody’s downgraded a number of Australian financial institutions which affected the limits held within both the rating and institutional limit frameworks, as required within Council’s Investment Policy.  The Investment Policy has now been altered to accommodate such an event in the future.

 

Standard & Poors

 

As previously identified, as a result of the downgrading by Standard and Poors of Bank of Queensland and Bendigo & Adelaide Bank from the A to the BBB category, the BBB category is in excess of the policy’s maximum limits.

 

Table 2a:

 

 

Moody’s

 

Whilst Moody’s also downgraded a number of institutions, no institution was required to move to a different rating band. Council therefore remains within policy limits.

 

Table 2b:

 

 

Cash - Westpac Business Cash Reserve Account

Current month $22,077,683 - Prior month $21,332,001

 

This is not available unrestricted cash.

 

This is a maxi account which the Council uses as a cash management tool only. Funds are transferred in and out of this account daily prior to investment, given its higher rate of interest than the general payment account. Levels in this account vary dependent on the time of month and rate payer/creditor cycle.

 

 


 

Summary of Net Investment Movements –1 January 2018 – 31 January 2018

 

 

It should be noted that funds currently within the Westpac Business Cash Reserve Account are attracting an interest rate of 2.2% being the current cash rate plus 0.7% (based on the cash rate drop on 3 August 2016), which performs better than the benchmark (1.74% 31 January 2018).

 

The largest sector of the portfolio is the term deposit allocation of $239,000,000 (last month $242,000,000) or 91.54% of the total.

 

Investment Portfolio by Maturity Date - as at 31 January 2018

 

 

Options

 

This is an information report.

 

Community Engagement & Internal Consultation

 

Council uses the services of an independent financial advisor, on an as needs basis with investments. The investments placed this month were term deposits. At least three quotes were obtained from financial institutions in line with Council’s Investment Policy. The services of an independent financial advisor were not required. Council obtains regular updates regarding market activities positions from various institutions.

 

Planning & Policy Implications

 

There are no planning and policy implications.

 

Financial & Economic Implications

 

Benchmark and budget levels have been met on a year to date basis. On an annual basis, if benchmark levels are not reached, then this may result in budget cuts in other areas to fund the shortfall.

 

Council’s total investment portfolio performance for 31 January 2018 is 1.28% above the benchmark (3.02% against 1.74%) and year to-date income is 73.80% of the total annual budget. 

 

It should be noted that investment income is noted as a gross amount. Section 97(5) of the Local Government Act 1993 indicates that any security deposit held with Council must be repaid with interest accrued. These security deposits will only relate to bonds held for security to make good damage done to works.

 

The overall investment income will be adjusted at financial year end by the total interest refunded on repayment of bonds. As Council constantly receives and refunds bonds, it is difficult to accurately determine the quantum of these refunds. This financial year to date Council has refunded bonds with an associated interest component of $29,761.24 which will be monitored and advised monthly.

 

Certification

 

I hereby certify that the investments listed within this report have been made in accordance with Section 625 of the Local Government Act 1993, clause 212 of the Local Government (General) Regulation 2005 and Council’s Investment Policy.

 

 

Karen Rowe

Responsible Accounting Officer

 

Attachments

 

Nil

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.13

 

Subject:     2017-2018 Operational Plan - Quarterly Progress Report as at 31 December 2017

Presented by:  Corporate Performance, Rebecca Olsen

 

 

Alignment with Delivery Program

 

1.1.4 Provide easy to understand and accessible community reporting.

 

 

 

RECOMMENDATION

 

That Council note the 2017-2018 Operational Plan - Quarterly Progress Report as at 31 December 2017.

 

Executive Summary

 

The 2017-2018 Operational Plan is a sub-plan of the newly adopted 2017-2021 Delivery Program.  The Delivery Program is designed as the single point of reference for all key activities to be undertaken during a term of Council. The Operational Plan spells out the detail of the individual actions, projects and activities Council will undertake in the financial year to meet the commitments made in the Delivery Program.

 

Progress reports to Council and the community provide a central point of information on the progress on delivering the actions set out in the 2017-2018 Operational Plan.  This quarterly progress report outlines what Council is delivering against each action, activity or project as well as performance measures in the adopted plan and seeks to provide concise and accurate information in relation to the progress made.

 

The overview section of the report provides a statistical snapshot of Operational Plan performance measurement data, with analysis of achievements and actions that are behind target detailed in each of the community themes.

 

The attachment provides the full 2017-2018 Operational Plan Progress Report, which includes a comprehensive listing of each individual action, performance measure, target and commentary on progress.

 

Meeting the targets and performance measures in the annual Operational Plan contributes to the overall achievement of the objectives outlined in the 2017-2021 four year Delivery Program. The legislated requirement to report against the Delivery Program occurs on a six-monthly basis. That report is next scheduled to be tabled at the Ordinary Meeting of Council in March 2018.  This will be the first six monthly report on the adopted 2017-2021 Delivery Program. 

 

Capital works projects are incorporated into the body of the Operational Plan and as such are reported on as individual actions with performance measured against the adopted project plan.  A number of projects may have design and construction elements and therefore can span across multiple years, these projects are identified as multi-year projects.

Discussion

 

(a)   Overview

2017-2018 Operational Plan - Quarterly Progress Report as at 31 December 2017

 

The 2017-2018 Operational Plan contains 252 actions with the total number of performance measures being 320.

As at 31 December 2017, 92% of Operational Plan actions are on target for delivery. Currently, 27 Operational Plan actions are reported as behind, representing 8% of overall actions. The table below provides a summary of the total number of performance measures and the status by Community Theme.

 

2017-2018 Operational Plan summary of performance measures by theme

Community Theme

Total

On target

Achieved

Behind 

Overall delivery

Leadership & Governance

80

70

7

3

96%

Your Community

69

61

4

4

94%

Your Business & Industry

24

22

1

1

96%

Natural & Built Environment

147

115

13

19

87%

Total

320

268

25

27

92%

 

The table below is comparative data of historical Operational Plan performance and provides information outlining year on year progress against the current 2017-2018 Operational Plan.

 

Comparative review of Operational Plan Performance Measures

 

 

Total

On target /achieved

Behind

Overall delivery

Percentage (%)

15/16

16/17

17/18

15/16

16/17

17/18

15/16

16/17

17/18

15/16

16/17

17/18

1Q - July - Sept

468

320

318

410

281

301

58

39

17

87%

88%

95%

2Q - Oct - Dec

468

320

 320

391

297

 293

77

23

 27

84%

93%

 92%

3Q - Jan - Mar

468

320

 

381

280

 

87

40

 

81%

88%

 

4Q - Apr - Jun

468

320

 

384

294

 

84

26

 

82%

92%

 

Total

468

320

 

384

294

 

84

26

 

82%

92%

 

 

(b)   Detailed Analysis by Community Theme and Service

 

Included below is a summary of highlights and information of those measures reported as behind according to each Community Theme and service within the Operational Plan.

 

Community Theme: Leadership and Governance

2017/18

Total

On target

Achieved

Behind

1Q - July – Sept 2017

80

75

2

3

2Q - Oct – Dec 2017

80

70

7

3

 

SUMMARY OF HIGHLIGHTS BY SERVICE

Digital Technology

·    Renewal of Council’s technology infrastructure to provide secure and responsive information communication technology is in progress

Community Place and Customer Interactions

·    Over 53,600 calls received through the customer call centre. 78% of calls answered within the set service standard exceeding the target of 75%

·    92% of initial customer interactions were dealt with at the first point of contact

·    Over 54,200 counter enquires were processed and over 14,600 e-mails were handled

·    Community members were involved in a variety of community engagement activities. Projects included Lake Rd upgrade, the Boom Reserve off-leash dog park, Lake Cathie Foreshore and Kew Main St Master Plans.

·    Registered users on the "Have your Say" online portal as at 31 December 2017 was 3,317. An increase from 3,127 users as at 30 June 2017.

Communications

·    Over 500 Media releases, statements, alerts and announcements were issued during July – December 2017

·    Over 365,100 people visited the corporate website

·    Facebook likes increased from 6,475 as to 30 June 2017 to 7,346 as at 31 December 2017 extending Council’s reach using digital channels

·    A range of communication tools were used to keep the community up to date with council activities including use of consistent media channels such as social media, newspaper advertising, Weekly Mayoral messages and weekly radio interviews

Governance

·    The Ordinary Council Meeting in October was held in Laurieton as part of the Take the Council to the Community Program

·    The Engaging and Communicating with the Community Program saw a meeting held in October at Bonny Hills

·    The annual GIPA report was submitted in line with required timeframes

·    The annual Disclosure of Interests returns where presented to the Ordinary Council Meeting in November 2017

·    Review of the payment of expenses and provisions of facilities for Councillors policy was competed

·    The annual report for Public Interest Disclosures was submitted as required

·    Implementation of the Procurement Strategy action items is progressing

·    Ongoing conversation were held with other levels of government included meetings with State and Federal members and participation in Mid North Coast Regional Organisations of Councils (MIDROC) 

 

Financial Services

·    Financial statements lodged with the Office of Local Government

·    Investment reports tabled in accordance with required timelines

·    Financial reports tabled in accordance with required timelines

·    Development and preparation of the annual operational budget is underway

 

Commercial Business Units - Glasshouse, Airport, and Property and Leasing

·    12 performing arts events held and nine visual arts events presented at the Glasshouse for the July to December 2017 period

·    The Glasshouse biannual report was presented to the August 2017 Ordinary Council meeting

·    155 commercial leases and 70 community leases are current and operating

 Asset Management

·    The Property Investment Policy was adopted at the Ordinary Council Meeting held in December 2017

 

Human Resource Management

·    Implementation of Workforce Management Strategy action items is ongoing

·    The  review of Work, Health and Safety Strategy is currently under underway

·    Implementation of staff survey actions from the Employee Engagement Survey ongoing

·    Improvements as a result of the Employee Engagement Program will be implemented in the first half of 2018

·    Business improvement initiatives from Phase 3 of the Service Review Project in progress

·    The 2016-2017 Annual Report was presented to the Ordinary Council Meeting in November in line with required timeframes

·    The 2016-2017 Annual Community Report Card was produced

 

Operational Plan actions reported as behind

Community Theme 1 – Leadership and Governance

 

Operational Plan Activity 2017 - 18

Lead

Responsibility

Success Measures

Target

YTD Actual

Comment on Progress

1.3.3.5 Align corporate Risk Management Framework to ISO 3100 standards

Governance and Procurement

Complete Risk Management Framework alignment in line with project milestones

100%

50%

Behind schedule. More stakeholder engagement has been completed to support implementation.

1.3.4.5 CW 17/18 Works Depot relocation - preconstruction/design (multi-year project)

Assets and Property Investment

Deliver project according to approved project plan (Works Depot relocation)

100%

75%

Behind schedule. Project brief and operational requirements currently under review.

1.5.3.1 Increase operating revenue at the airport, the Glasshouse and the Environmental Laboratory

Commercial Business Units

Increase operating revenue by 3% per annum per business unit

3%

0.2%

Behind target. Revenue up 0.2% on corresponding period in 2016-17.

 

 

Community Theme: Your Community

2017/18

Total

On target

Achieved

Behind

1Q - July – Sept 2017

69

68

0

1

2Q - Oct – Dec 2017

69

61

4

4

 

SUMMARY OF HIGHLIGHTS BY SERVICE

Commercial Business Units – Environmental Laboratory

·    Sampling, analysis and reporting of operational and regulatory requests at the Laboratory were completed within the set service standards

·    National Association of Testing Authority corporate accreditation maintained

 

Sports and Recreation

·    Lifeguard Services provided at Town, Flynns, Lighthouse, Lake Cathie, Rainbow and North Haven beaches

·    The lifeguard education program has reached over 3,600 students with over 54 presentations undertaken

·    Implementation of the identified actions from the Recreation Action Plan is ongoing

·    Regional Master Planning for recreational facilities has commenced, with the Lake Cathie Foreshore Master Plan on exhibition. Flynns Beach Master Plan community engagement scheduled to commence in February 2018.

·    Community engagement underway for the Leash Free Dog facility in Port Macquarie.

·    Stage 1 community engagement conducted for PMQ swimming pool. Further community engagement will continue into 2018 to inform the design of the strategic concept plan and site selection

·    The Playground equipment replacement program is underway with Laura Place, Laurieton Oval and Long Flat playgrounds planned to start construction in March. Lasiandra and Foreshore Reserve starting April, River Street, Sancrox and Pioneer Park starting May/June

·    The Recreational walkway replacement program underway with the pathway at Binbilla Reserve Bonny Hills complete and Flagstaff walkway renewal designs underway

·    Town Green improvements complete

·    Town Square construction complete

·    The Port Macquarie Coastal Walk Master Plan was adopted by Council

·    The Hastings Regional Sporting Facility has pre-construction works progressing to schedule

·    Works progressing on Mrs Yorks Garden - Woodland Walk

·    Lake Cathie Accessible Fishing Platform complete

 

Compliance

·    231 pool inspections have been undertaken for the July to December period

·    517 risk based audit inspections relating to on-site sewage were undertaken for the July to December period

·    138 inspections relating to development approvals and building, environmental, public health and on-site sewage standards were undertaken for the July to December period

·    23 fire safety inspections were undertaken for the July to December period

 

Community Place

·    The Youth Advisory Committee involved in Youth Week planning

·    Implementation of identified actions from the Aboriginal Awareness and Understanding Strategy ongoing

·    Round 1 of the Community Grants Program complete with Round 2 to open in February

·    Implementation of the Disability Inclusion Action Plan ongoing

·    The review of the Cultural Plan is currently underway

·    Library membership up from 32,167 (July) to 33,339 (December 2017).

·    Graffiti Blasters Program ongoing with additional work conducted in Bonny Hills in December

·    A number of key events have been held across the region including Moonlight Movie events in Bonny Hills and Wauchope, the School Holiday Program at local Libraries, Author Talk at the Library and installation of the Pappinbarra Playground project, Waves and Melodies at Town Beach and Rainbow Rhythms at Bonny Hills

·    The Volunteer Program has seen work undertaken with key volunteer groups for Beach to Beach, Schools to school and the Lions Club

·    Lake Cathie accessible fishing platform complete

 

Operational Plan actions reported as behind

Community Theme: Your Community

 

Operational Plan Activity 2017 - 18

Lead

Responsibility

Success Measures

Target

YTD Actual

Comment on Progress

2.3.3.07 Innes Peninsula (Brierley Hill) — design and develop new local park

Recreation and Buildings

Deliver project according to approved project plan

100%

0%

Behind schedule. This project will not commence until 2018-2019 due to reprioritisation of works programme items.

2.3.4.03 Wayne Richards Park — Stage 3B detailed design and approvals

Recreation and Buildings (Infrastructure Delivery)

Deliver project according to approved project plan

100%

50%

Behind schedule. This project depends on relocation of existing works depot.

2.3.4.06 CW 17/18 Flynn's Beach — upgrade sea wall (multi-year project)

Recreation and Buildings (Infrastructure Delivery)

Deliver project according to approved project plan

100%

50%

Behind schedule. Project pre planning finalised for Design and Construction tender. Tender for Design and Construction advertised mid Nov 2017. Target tender award early 2018.

2.3.4.07 CW 17/18 Googik Track - construct shared walkway/ cycleway, Stage 2 (multi-year project)

Recreation and Buildings (Infrastructure Delivery)

Deliver project according to approved project plan

100%

50%

Behind schedule. Project pending National Parks Wildlife Services advice re next steps/preferred route.

 

Community Theme: Your Business and Industry

2017/18

Total

On target

Achieved

Behind

1Q - July – Sept 2017

24

24

0

0

1Q - Oct – Dec 2017

24

22

1

1

 

SUMMARY OF HIGHLIGHTS BY SERVICE

Economic Development

·    Implementation of the Economic Development Strategy is ongoing with a report on implementation presented to Council in November 2017

·    The annual business confidence survey was undertaken in August with results indicating that local business conditions are stable and expected to improve further

·    Implementation of actions within the Major Events Strategic action plan are underway, with distribution of the Event Sponsorship funding finalised and reported to the October Council Meeting

·    Implementation of actions within the Destination Management Plan are underway

·    New monthly visits to the destination website increased by 19.59% exceeding the set target of 15%

·    Ongoing meetings attended on a monthly basis with Camden Haven, Port Macquarie and Wauchope Chamber of Commerce to support initiatives

·    Meetings attended with the Business Hub to support local business networks

·    Implementation of actions from the Digital Strategy is ongoing

Port Macquarie Airport

·    Port Macquarie Airport Terminal upgrade has progressed to the detailed design phase of the project

·    Over 115,500 passengers have been recorded for the Airport with over 408 aircraft movements recorded

 

Operational Plan actions reported as behind

Community Theme: Your Business and Industry

Operational Plan Activity 2017 - 18

Lead

Responsibility

Success Measures

Target

YTD Actual

Comment on Progress

3.1.2.1

Prepare Local Environmental Plan (LEP) and Development Control Plan (DCP) amendments in relation to a business park near Port Macquarie Airport

Strategic Landuse Planning

Report to Council regarding adoption of LEP and DCP amendments  by 31 Dec 2017

100%

60%

Behind schedule. Draft Council report completed pending biodiversity certification for Council Airport lands.

 

 Community Theme: Natural and Built Environment

2017/18

Total

On target

Achieved

Behind

1Q - July – Sept 2017

145

128

4

13

1Q – Oct – Dec  2017

147

115

13

19

 

SUMMARY OF HIGHLIGHTS BY SERVICE

Water Supply

·    Water and sewer trunk mains from North Haven to Laurieton and the Stingray Creek Bridge crossing is complete

·    Over 390 new water supply services have been installed to residential and business properties to cater for new development during July to December

·    Concept designs for construction of Granite Street Reservoir are being finalised and will be ready for tender in February/March 2018

·    The first stage of construction of the reclaimed water trunk main at Area 14 is nearing completion

·    Land acquisition and concept designs are currently being finalised for the Thrumster reclaimed water reservoir project

·    Designs are nearing completion for Beechwood Rosewood Reservoir

·    Maintaining and operating storage dams has been undertaken in accordance with Australian National Committee On Large Dam guidelines

Sewerage

·    Designs are underway for the Port Macquarie Sewer Pump Station 71

·    The upgrade of the Port Macquarie Reclaimed Water Treatment Plant is ongoing

·    The sewerage upgrade at Area 15 for Lakewood/Kew is complete

·    New sewer main connections at Stingray Creek Bridge is complete

·    Dunbogan Sewerage Treatment Plant sewer rising main extensions have designs underway

·    Programmed replacement and maintenance of sewerage assets including, sewer pumps, electrical switchboards, membrane replacement, odour control installations, minor extensions and pipelines are ongoing

·    Operating and maintaining sewerage treatment plants in accordance with environmental licences, adopted maintenance programs and safety requirements is on target

 

Stormwater and Drainage

·    Designs are underway for stormwater drainage at Lake and Jindalee Road Port Macquarie

·    Designs are underway for stormwater drainage at Gordon and Owen Street Port Macquarie

·    Piped drainage – Stage 1 works at Batar Creek Road and Laurel Street Kendall has commenced

·    Stormwater detention facility at Black Swan Terrace has initial concept plans received with review undertaken and is pending concept plan amendments

·    Stormwater remediation works at Calwalla Crescent has project planning ongoing

·    Settlement Shores and Broadwater canal maintenance are ongoing

 

Roads, Bridges and Transports

·    North South Link Road has Stage 3 (final stage) of the project underway

·    Footpath construction has been completed at Sherwood Road and Park Street Port Macquarie and Bain Street Wauchope

·    Bulli Creek Bridge replacement on Comboyne Road has construction planning finalised with bridgework commenced

·    Hartys Creek on Comboyne Road is expected to commence in April 2018

·    Preconstruction works for the duplication of Greenmeadows Drive south to Matthew Flinders Drive has designs complete

·    Beechwood Road (segments 20,40 and 50) preconstruction upgrades had the design contract awarded at the December Ordinary Council Meeting

·    Lake Road upgrade to widen the westbound carriageway between Toorak Court and Oxley Highway has construction commenced

·    Hastings River Drive – Newport Island Road roundabout has construction planning ongoing

·    Houston Mitchell Drive construction of Stages 2 and 3 complete

·    Upgrade to Ocean Drive from Mountain View Road to Fairwinds Avenue is nearing completion

·    Pedestrian amenity improvements – Kew to Laurieton along Ocean Drive and Bold Street has preconstruction planning underway

·    Structural repairs for Kindee Bridge has Stage 1 complete and Stage 2 planned for early 2018

·    Hyndmans Creek Bridge replacement on Comboyne Road is complete

·    Albert Street single lane timber bridge replacement has the construction tender awarded with construction planned for early 2018

·    O’Neills Bridge - Batar Creek Road replacement has construction design and construction tender awarded

·    Shared path between Miala Street and Lake Cathie Medical Centre at Ocean Drive is complete

·    Dual carriageway upgrades to Gordon and Horton Street to Lake Road has construction complete. Project was extended to include upgrades to Hay and Hayward Streets

·    Pedestrian crossing at Bold Street Laurieton has detailed design underway

·    The broad analysis of priorities for sealing of unsealed roads has discussions ongoing for program development

·    The annual unsealed road maintenance program, sealed road maintenance program and bridges and culverts maintenance program are all on target and ongoing

·    The report on the Area Wide Traffic Study is currently under review

·    The 2017-2018 Road reseal and rehabilitation projects have focused on the following locations:

 

Road rehabilitation

Glen Haven Dr, Lakewood

Captain Cook Bicentennial, Laurieton

Diamond Head Rd, Dunbogan

Ocean Drive, Lakewood

King Creek Rd, Wauchope

Sarahs Cres, Wauchope (final seal to be applied)

Stoney Creek Rd, Wauchope

Redbank Rd, Wauchope (final seal to be applied)

Pembrooke Rd, Pembrooke

Beechwood Rd, Beechwood

Blackbutt Rd, Port Macquarie

Hill St (Lake Rd to Lord St), Port Macquarie

Rollands Plains Rd, Rollands Plains

Beechwood Rd (Oxley Hwy), Wauchope

Houston Mitchell Dr, Lake Innes

Wauchope Local Streets (Nelson, Parker, Campbell, Waugh, Young, Mackay, Johnstone, Cowdery, Webb)

Reseal Programme

West Haven/Lakewood, Asphalt Rejuvenation

Rocks Ferry Area, Wauchope, Bitumen Reseal

Riverbreeze Area, Wauchope, Asphalt Rejuvenation

Redbank Rd, Wauchope, Bitumen Reseal

Stoney Creek Rd, Wauchope, Bitumen Reseal

Old King Creek, Wauchope (if funds permit)

Strategic Land Use Planning

·    The Urban Growth Management Strategy public exhibition period is complete and will be provided to Council for review

·    Review of the Port Macquarie-Hastings Local Environmental Plan 2011 is ongoing

·    Review of the Port Macquarie-Hastings Development Control Plan 2013 is ongoing

·    Draft Koala Plan of Management adopted at the Ordinary Council Meeting in December 2017

Natural Resource Management

·    Maintenance programs for bushfire mitigation works on Council land is ongoing in accordance with the Bushfire Risk Management Plan

·    Over 540ha of land have been treated for invasive weeds and over 600kms of weed dispersal routes treated as part of the Weed Management Program 

·    Feral animal control has been undertaken on Council-controlled land at Kingfisher Tip, North Shore, Christmas Bells and North Haven and Port Water catchment supply area

·    Ongoing education of residents, industry and community group on Council’s tree management requirements with the Port Macquarie-Hastings 2013 tree management Development Control Plan is ongoing

·    Over 900 customer requests relating to tree matters have been handled during July to December 2017, including those relating to public, private and illegal tree works

·    Tree maintenance works including pruning or removal of high-risk trees has been undertaken as scheduled.  Current status of total work is:
804 trees listed for works
Very High Risk (Priority 1) – 18,
High Risk (Priority 2) – 290,
Moderate/Low Risk (Priority 3-6) – 496

·    Delivering Bushfire preparedness and planning programs to the community is ongoing

·    The draft Biodiversity Strategy is planned to be placed on public exhibition in January/February 2018 after being adopted to the Ordinary Council Meeting in December 2017

 

Asset and Property Investment

·    Four potential sites have been identified as suitable for future mid-scale solar projects and included in the Long Term Energy Strategy that was adopted at the Ordinary Council Meeting in October 2017

·    Feasibility assessment completed for bulk street lighting upgrade to LED. The recommendation to proceed was adopted at the August 2017 Ordinary Council Meeting

Building Maintenance

·    Installation of solar energy system at the Laurieton Council Office and Library in Laurieton is progressing

·    LED lighting upgrades for the Port Macquarie-Hastings Council office building is ongoing

Development Assessment

·    Over 950 Development Applications, s96 Modifications, Construction Certificates and Complying Development Certificates were determined within agreed processing times for the July to December 2017 period

 

Operational Plan actions behind

Community Theme – Your Natural and Build Environment

 

Operational Plan Activity 2017 - 18

Lead

Responsibility

Success Measures

Target

YTD Actual

Comment on Progress

4.1.1.11 CW 17/18 Koree Island HV incoming electrical upgrade (33KV)

Water and Sewer

Deliver project according to approved project plan

100%

50%

Behind schedule. Designs delayed due to more rigorous design requirements from Essential Energy (earthing and easement plan). Designs to be reviewed and resubmitted for approval.

4.1.3.03 CW 17/18 Small towns sewerage program - provision of centralised sewerage  systems for Comboyne (multi-year  project)

Water and Sewer

Deliver project according to approved project plan

100%

50%

Behind schedule. Review of environ-mental factors and tender documentation are underway and experiencing delays due to the complexity of environmental considerations.

4.1.3.04 CW 17/18 Small towns sewerage program - provision of centralised sewerage systems for Long Flat (multi-year project)

Water and Sewer

Deliver project according to approved project plan

100%

50%

Behind schedule. Review of environ-mental factors and tender documentation are underway and experiencing delays due to the complexity of environmental considerations.

4.1.3.05 CW 17/18 Small towns sewerage program - provision of centralised sewerage systems for Telegraph Point (multi-year project)

Water and Sewer

Deliver project according to approved project plan

100%

50%

Behind schedule. Review of environ-mental factors and tender document-tation are underway and experiencing delays due to the complexity of environmental considerations.

4.1.3.07 Thrumster (Area 13) Sewerage Treatment Plant - environmental  impact and concept study

Water and Sewer

Deliver project according to approved project plan

100%

25%

Behind schedule. Project plan currently under development. Concept design and environmental impact statement review proposed to be undertaken as part of the initial works.

4.1.3.10 Camden Haven upgrade and upsize of mains and pump stations

Water and Sewer

Deliver project according to approved project plan

100%

75%

Behind schedule. Sewer pump station upgrade complete. Mains upgrade ongoing and in accordance with approved budget. Design complete. Revised review of environmental factors to be submitted in January 2018. Construction work to be incorp-orated into rising main extension to Camden Haven Sewer Treatment Plant when these designs complete (due Feb 18).

4.1.5.03 Continue stormwater remediation - flood remediation Blackbutt Creek, Wauchope

Transport and Stormwater Network

Deliver project according to approved project plan

100%

60%

Behind schedule. Project continued from 2014/15 FY. Detailed design completed. Property acquisition matters have significantly delayed works commencement, however acquisition is being finalised at present. Project works to be programmed following finalisation of acquisition.

4.1.7.1 CW 17/18 Kingfisher Waste Depot -Commence construction for expansion (upgrade and expansion) - (multi-year project)

Environ-mental Services, (Infrastruct-ure Delivery)

Deliver project according to approved project plan

100%

50%

Behind schedule. Detailed design commenced, however, construction expected in 2018-2019.

4.2.1.2 Continue to implement Floodplain Risk Management, Coastal and  Estuary Management Plans

Environ-mental Services

Deliver project according to approved project plan

100%

0%

Behind target. Awaiting Business Case approval. Briefing scheduled for March/April 2018.

4.2.2.1 Continue to undertake the landfill gas capture trial project at Cairncross Landfill

Environ-mental Services

Deliver project according to approved project plan

100%

50%

Behind schedule. Initial testing at the site shows poor results. Further action required to determine future progress with this project - future meeting (Feb) set up to examine gas bore requirements.

4.2.2.2 Update the flood policy to include revised flood levels for the Hastings River as a result of Climate Change methodology

Environ-mental Services

Flood Policy updated

100%

0%

Behind target. Awaiting councillor briefing on climate change impacts to flood levels. Scheduled for 4 April 2018

4.4.1.09 Hastings River Drive - Aston Street crossing (multi-year project)

Transport and Stormwater Network, (Infrastruct-ure Delivery)

Deliver project according to approved project plan

 

 

100%

50%

Behind schedule. Project scope pending confirmation.

4.4.1.21 CW 17/18 Dunbogan Bridge - Reid Street - undertake substructure rehabilitation (multi-year project)

Transport and Stormwater Network, (Infrastruct-ure Delivery)

Deliver project according to approved project plan

100%

0%

Behind schedule. Project has been delayed due to the resignation of the Bridges and Structures Engineer. Engineering Planning Manager Transport and Stormwater Network working with Director to source external resources. Report presented and adopted at the November Ordinary Council Meeting.

4.4.1.23 CW 17/18 Roads Maritime Service Grants (RMS) - Safety Program and Active Transport Program

Transport and Stormwater Network

Deliver project according to approved project plan

100%

80%

Behind target. Roads and Maritime Services projects with funding clarifications have now commenced. Transport for NSW gave final project allocations for the Wauchope Main Street and Beach to Beach projects in December and RMS are aware of the revised time lines. Some of the Beach to beach project will remain on hold until a temporary Project Engineer can be employed.

4.4.1.30 Undertake review of the Parking Strategy

Transport and Stormwater Network

Complete Parking Strategy review

100%

50%

Behind schedule. Project planning on hold pending resource. Recruitment for Temporary Project Engineer underway.

4.5.1.3 Preparation of Local Environmental Plan (LEP) and Development Control Plan (DCP) amendments for the South Lindfield urban release area

Strategic Landuse Planning

Report recommended planning outcomes to Council, post exhibition, by 31 Dec 2017

100%

90%

Behind target.

Public exhibition concluded. Issues raised would lead to changes requiring re-exhibition. Re-exhibition commenced, and will enable submission of report to first meeting of Council in 2018.

4.5.2.1 Review the Development Contributions Plans

Strategic Landuse Planning

Report to Council regarding adoption of Open Space Contributions Plan by 31 March 2018

100%

90%

Behind schedule. Project is now delayed by availability of slots in the Councillor Briefing schedule. Draft plan is now scheduled for Councillor Briefing 31 January, with a view to consideration at February Council meeting, followed by public exhibition in March-April 2018 and will not meet the performance indicator target.

4.6.1.6 Inform and educate residents, industry and community groups about Council’s tree management requirements within the Port Macquarie-Hastings 2013 Development Control Plan (DCP)

Recreation and Buildings

Provide advice in accordance with service standards and industry best practice

100%

83%

Behind target. Total CRM's 910 including 729 public tree issues, 150 private tree issues and 31 illegal tree works.

Additional information: 266 enquires (158 public and 80 private phone and email enquires). This does not include calls transferred from call centre to staff. In addition, there were 67 internal enquiries.

4.8.1.5 Operate the sewerage network to ensure service delivery meets public health and safety requirements

Water and Sewer

Have nil reportable incidents relating to the operation of the sewerage network

0#

2#

Behind target. There were two reportable incidents during December. One in Dunbogan, as a result of an unexpected premature pipe failure and the other at Bonny Hills as a result of a wet weather event.

 

Options

 

Seek further information on performance measures reflected in this report.

 

Community Engagement & Internal Consultation

 

The information contained in this report has been subject to consultation with the Executive Team, Senior Leadership Team, Integrated Planning and Reporting Development Officer and Council Staff.

 

Planning & Policy Implications

 

This report is consistent and aligned with the Integrated Planning and Reporting Framework provisions contained in the Local Government Act (1993).

 

Financial & Economic Implications

 

The Quarterly Budget Review Statements are tabled separately and reflects the financial implications against the Operational Plan.

 

Do not delete this line

Attachments

 

1View. 2017-2018 Operational Plan Quarterly Progress Report as at 31 December 2017

 


AGENDA                                                                                Ordinary Council

21/02/2018

 

 

Item:          09.14

 

Subject:     Glasshouse Biannual Report and Update on Strategic Plan Recommendations

Presented by:  Corporate Performance, Rebecca Olsen

 

 

Alignment with Delivery Program

 

1.5.3 Develop, manage and maintain Council Business Units through effective commercial management.

 

 

 

RECOMMENDATION

 

That Council note the information provided in the Glasshouse Biannual Report and Update on Strategic Plan Recommendations report.

 

Executive Summary

 

This report provides details of the Glasshouse finances for the 2017-18 financial year as at 31 December 2017, including the updated status of Glasshouse loan balances, and provides an update on progress achieved against the Recommendations identified in the Glasshouse Strategic Plan 2014 - 2017.

 

Discussion

 

Background

 

At the Ordinary Council Meeting held on 15 February 2017, Council resolved to replace quarterly Glasshouse reporting to Council with six monthly reporting in February and August each year detailing key performance measures and financial information for the previous financial year period:

 

09.14 REVIEW OF SELECT COUNCIL COMMITTEES

Mr Malcolm Merrick, representing the Port Macquarie Tacking Point Lions Club Inc., addressed Council in support of the recommendation and answered questions from Councillors.

RESOLVED: Turner/Cusato

1. Establish a new Steering Group called the ‘Cultural Steering Group’.

2. Adopt the Cultural Steering Group Charter as included in this Review of Select Council Committees report.

3. Seek Expressions of Interest (EOI) for members of the Cultural Steering Group, with the results of the EOI to be reported to the 19 April 2017 Ordinary Meeting of Council.

4. Work with members of the following existing Council Committees to transition them into working groups with objectives, actions and reporting lines to the Cultural Steering Group:

a) Port Macquarie-Handa Sister City Sub-committee.

b) Australia Day Sub-committee.

c) Port Macquarie-Hastings Youth Advisory Committee.

5. Work with Heritage, Arts and Cultural Priorities Advisory Group to transition it into the Cultural Steering Group.

6. Replace quarterly Glasshouse reporting to Council with six monthly reporting in February and August each year detailing key performance measures and financial information for the previous financial year period.

CARRIED: 7/2

FOR: Besseling, Alley, Cusato, Dixon, Intemann, Levido and Turner

AGAINST: Griffiths and Hawkins

 

Accordingly, this report provides details of the Glasshouse finances for the 2017-18 financial year as at 31 December 2017, including the updated status of Glasshouse loan balances, and provides an update on progress achieved against the Recommendations identified in the Glasshouse Strategic Plan 2014 - 2017.

 

Glasshouse Finances

 

The December review and attached report present the financial performance of the Glasshouse Venue for the second quarter of the 2017 - 2018 financial year (1 October 2017 to 31 December 2017) and the financial year to date (1 July 2017 to 31 December 2017).

 

The commentary in this report refers to the operating deficit/shortfall (before interest and depreciation).  The attached quarterly Financial Statement also shows the operating deficit/shortfall after interest and depreciation. Over time, loan interest expense will decrease as loans are repaid. Depreciation is subject to revaluations. These expense items may distort the overall result when comparing with the previous financial year period hence why the commentary refers to the operating result before interest and depreciation.

 

The operating deficit for the financial year to date (before interest and depreciation) is a deficit/shortfall of $1,188,857 against a budget of $1,154,174, hence tracking approximately $35k or 3% over budget. Actual results for the same period in the prior year (1 July 2016 to 31 December 2016) was an operating deficit/shortfall of $1,198,551. Hence the Glasshouse operating position has improved by $9,694 when compared to the same period 12 months ago.

 

It should be noted that being a venue, income patterns can be subject to market forces, availability (and timing) of product in the market-place and seasonality. Commercial venue hire is 15% up on the same period last year highlighting improved performance in attracting commercial hire to the venue.  Operating income overall is up around 11% on the same period last year.  Operating costs are tracking around 4% up on the same period last year.

 

This operating deficit (before interest & depreciation) can also be represented as follows:

 

Glasshouse Operating Deficit by Activity - Year to Date 31 December 2017:

 

 

Management

Back of House

Front of House

Community

Commercial

Cultural

Total

Operating Income

-

1,544

786,834

93,873

882,249

Operating Expenditure (Before Council Overheads)

106,774

508,023

270,582

44,041

466,084

438,772

1,834,277

Council Overheads

54,471

18,946

40,261

11,841

28,419

82,890

236,829

Net Operating Surplus (Deficit)

(161,245)

(526,969)

(310,843)

(54,338)

292,331

(427,789)

(1,188,857)

 

Management, Back of House and Front of House provide internal support functions for Community, Commercial and Cultural activities. Community and Cultural functions also hire space from the Commercial function to derive actual costs of delivering community and cultural functions within the Glasshouse overall function. When the costs of these internal support functions are distributed, the operating surplus (deficit) can be represented as follows:

 

Glasshouse Operating Deficit by Activity (after internal adjustments) - Year to Date 31 December 2017:

 

 

Management

Back of House

Front of House

Community

Commercial

Cultural

Total

Net Operating Deficit (from the above table)

(161,245)

(526,969)

(310,843)

(54,338)

292,331

(427,789)

(1,188,857)

Internal Overhead Distribution

161,245

526,969

310,843

(388,577)

70,033

(680,513)

-

Net Operating  Surplus (Deficit) (after internal adjustments and transfers)

-

-

-

(442,915)

362,364

(1,108,302)

(1,188,857)

 

Glasshouse Loan Balances

 

Loan borrowings assisted in the funding of the Glasshouse at the time of construction. Of the total cost, $27,975,954 was sourced through loan borrowings that are repaid through Council general revenue. It should be noted that there was also $10,873,801 sourced through loan borrowings that are paid from the S94 restricted asset for community facilities. Councils often use borrowing as a way to fund additional infrastructure whilst maintaining intergenerational equity outcomes.

 

The outstanding balance of the borrowings that are repaid through general revenue, as at 31 December 2017, is $14,714,617. This demonstrates that over $13.25 million has already been repaid, with loans expected to be repaid by 2027.

 

Glasshouse Strategic Plan Recommendations

 

The Glasshouse Strategic Plan 2014 - 2017 was adopted by Council at the Ordinary Council Meeting held on 16 July 2014 to provide a greater commercial focus in the operation of the venue across four key outcome areas: ensuring good governance; developing successful partnerships; enhancing utilisation and visitation; and promoting viability.

 

Significant progress has been achieved since July 2014 with regard to the implementation of the strategic direction outlined in the Plan.  This progress is summarised in the attached Update on Glasshouse Strategic Plan Recommendations - February 2018 with some specific outcomes discussed below.

 

It is noted that the recommendations and corresponding actions arising from the Strategic Plan have now been completed and/or are continuing to guide day-to-day operations as part of “business as usual” activities.

 

Council’s Operational Plan 2017 – 2018 includes an action to review and update the Glasshouse Strategic Plan (OP 1.5.3.2).  At the Ordinary Council Meeting held on 16 August 2017, Council resolved as below:

 

09.15 GLASSHOUSE END OF FINANCIAL YEAR REPORT AND UPDATE ON STRATEGIC PLAN RECOMMENDATIONS

RESOLVED: Turner/Hawkins

That Council:

1. Note the information provided in the Glasshouse End of Financial Year Report and Update on Strategic Plan Recommendations Report.

2. Note that the Glasshouse Strategic Plan will not be current past 2017.

3. Request the Cultural Steering Group provide recommendations to Council for the renewal of the Glasshouse Strategic Plan and associated KPI's as part of its review of Council's Cultural Plan.

CARRIED: 9/0

FOR: Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

AGAINST: Nil

 

Further to Resolution 3 above, Council’s Cultural Steering Group is continuing to review the Cultural Plan.  Once the Cultural Plan is available, the Plan will be reviewed to ensure that the ongoing strategic / business direction of the Glasshouse remains consistent with Council’s broader Cultural Plan aspirations.

 

1.2     Review management and reporting systems to support effective decision-making

 

The following table includes the following Key Performance Indicator (KPI) data associated with Glasshouse utilisation and occupancy rates (noting that the results are reported to 31 December 2017):

 

Performance Indicator

2016-17

Actual

2016-17

Actual

2017-18

Actual

2017-18 Target

Key Outcome 3: Enhancing Utilisation and Visitation

Implement targeted marketing and sales strategies to enhance utilisation, increase event visitation and maximise commercial outcomes

 

Jul-Dec

Jul-Dec

 

Visitation (Glasshouse)

255,521

131,639

140,825

> 255,000

Visitation (Gallery)

54,617

26,182

24,541

> 55,000

Visitation (website)

135,905

64,427

82,287

> 135,000

Utilisation (%) (theatre)

42%

47%

53%

> 40%

Utilisation (%) (studio)

26%

27%

37%

> 35%

Utilisation (%) (meeting rooms)

47%

45%

54%

> 40%

Average attendance (%) (theatre)

68%

66%

74%

> 70%

Average attendance (%) (studio)

 79%

75%

65%

> 70%

Number of tickets processed

66,353

36,644

38,455

> 65,000

Percentage of tickets sold online

27%

27%

35%

> 30%

 

The July - December KPI results represent very positive figures for the period and show continuing growth in utilisation and visitation compared to the corresponding period in 2016-17, noting that results can fluctuate year to year depending on the timing of particular events and the type and composition of venue hire.

 

2.1     Identify and develop key partnerships to maximise cultural, community and commercial outcomes

 

At the end of the 2017 Membership Season (30 November), there were 1,344 Glasshouse Members - this represents a further increase of 69 members over the number of members at 30 November 2016. This level of membership far exceeds the patron participation results achieved by other similar NSW venues.

 

As at 31 January 2018 there were already 924 Glasshouse Members registered for the 2018 Season.

 

The 2018 “Forever Glasshouse” Season was officially launched on Thursday 1 February, marking the 10th Performing Arts Season at the Glasshouse. The theme “Forever Glasshouse” is a reflection on how over time the Glasshouse has become an integral part of our community.  The Launch was very successful presenting the 2018 Season to a full house of Glasshouse Members and guests.

 

Council is continuing to support and develop a number of corporate partnerships / sponsorships consistent with the Glasshouse Marketing and Sales Plan, including the Glasshouse Founding Sponsors, Arts NSW and a number of regional / local media organisations.

 

In 2018, the Glasshouse team has secured WIN Network as the inaugural Glasshouse Performing Arts Season Principal Sponsor, along with Angove Family Winemakers as Supporting partner and the Conservatorium Mid North Coast as a Presenting Partner (for Opera Australia).

 

Council is also continuing to provide support for a wide variety of community groups to access and use the Glasshouse facilities.  The Conservatorium Mid North Coast Children’s Choir performed as part of this year’s Season Launch.

 

3.1     Promote operational flexibility in the use of the Glasshouse footprint to optimise cultural, community and commercial outcomes

 

This work is continuing on an ongoing basis, including school holiday activities such as the Neon Summer program.  Neon Summer is a program of creative and cultural workshops and events run to drive engagement and visitation during the traditionally quieter December – January summer holiday period.  The program has been run with $19,102 in grant funding support from the Australian Government Building Better Regions Fund, and has been highly successful with high gallery visitation and ticket sales at all Neon Summer events.

 

4.4 Continue to rationalise operating costs and overheads

 

Council has also been successful in being awarded $135k in grant funding support from the NSW State Government to upgrade the existing halogen theatre lights to energy efficient LED lighting.  This project, to be implemented in 2018, will not only reduce annual operating costs but also enhance the technical quality of production services able to be offered by the Glasshouse to users of the theatre.

 

Other actions

 

Further detail is provided in the attached Update on Glasshouse Strategic Plan Recommendations - February 2018.

 

Options

 

This is an information report.

 

Community Engagement & Internal Consultation

 

The information provided in this report has been reviewed by Council staff.

 

Planning & Policy Implications

This report is consistent with the key outcomes, recommendations and governance and reporting arrangements identified in the adopted Glasshouse Strategic Plan 2014 - 2017.

 

Council’s Operational Plan 2017 – 2018 includes an action to review and update the Glasshouse Strategic Plan (OP 1.5.3.2).

 

Financial & Economic Implications

The Glasshouse Strategic Plan 2014 - 2017 aims to continue the significant progress that has been made in reducing the net cost of the operation of the Glasshouse to the community while continuing to ensure the delivery of high quality cultural, community and commercial activities.

 

Attachments

 

1View. Glasshouse Financial Statement 31 December 2017

2View. Update on Glasshouse Strategic Plan Recommendations February 2018

 


AGENDA                                              &nbs