Ordinary Council Meeting

 

Agenda

 

19 April 2022

 

 

Notice is hereby given, in accordance with the provisions of the Local Government Act 1993 that an Ordinary meeting of ORANGE CITY COUNCIL will be held in the Council Chamber, Civic Centre, Byng Street, Orange on  Tuesday, 19 April 2022  commencing at 6.30pm.

 

 

David Waddell

Chief Executive Officer

 

For apologies please contact Administration on 6393 8106.

  

 


Council Meeting                                                                                               19 April 2022

Agenda

EVACUATION PROCEDURE

In the event of an emergency, the building may be evacuated. You will be required to vacate the building by the rear entrance and gather at the breezeway between the Library and Art Gallery buildings. This is Council's designated emergency muster point.

Under no circumstances is anyone permitted to re-enter the building until the all clear has been given and the area deemed safe by authorised personnel.

In the event of an evacuation, a member of Council staff will assist any member of the public with a disability to vacate the building.

  

1                Introduction.. 4

1.1            Apologies and Leave of Absence. 4

1.2            Livestreaming and Recording. 4

1.3            Acknowledgement of Country. 4

1.4            Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests. 4

COUNCIL MEETING ADJOURNS FOR THE CONDUCT OF THE OPEN FORUM... 4

COUNCIL MEETING RESUMES. 4

2                Mayoral Minutes. 5

Nil

3                Confirmation of Minutes of Previous Meeting.. 5

3.1            Minutes of the Ordinary Meeting of Orange City Council held on 05 April 2022  6

4                Notices of Motion/Notices of Rescission.. 17

4.1            Notice of Motion - NSW Rugby League - High Profile Games in Orange. 17

5                General Reports. 18

5.1            Recommendations and Resolutions from Policy Committees. 18

5.2            Draft Community Strategic Plan (CSP) Draft Delivery Program 2022/2026 and Operational Plan 2022/2023. 33

5.3            Update on Outstanding and Completed Resolutions of Council including Questions Taken on Notice, Matters Arising and Notices of Motion. 557

5.4            Payment of Councillor Superannuation. 591

5.5            Statement of Investments - March 2022. 593

5.6            Additional Special Variation for the 2022/2023 Financial Year. 599

5.7            Fees and Charges - Carl Sharpe Cricket Centre. 603

5.8            Impact Of Benchmarking Domestic Waste Management Charges And Draft Submission to IPART on Benchmarking and Rate Capping Councils. 607

6                Closed Meeting - See Closed Agenda.. 621

6.1            Northern Distributor Road Naming to Glenn Taylor Way. 623

6.2            Resubmission - Construction of the Southern Distributor Road Stage 4 and Shiralee Collector Road Stage 5. 625

7                Resolutions from closed meeting.. 626

 


Council Meeting                                                                                               19 April 2022

1       Introduction

1.1     Apologies and Leave of Absence

1.2     Livestreaming and Recording

This Council Meeting is being livestreamed and recorded. By speaking at the Council Meeting you agree to being livestreamed and recorded. Please ensure that if and when you speak at this Council Meeting that you ensure you are respectful to others and use appropriate language at all times. Orange City Council accepts no liability for any defamatory or offensive remarks or gestures made during the course of this Council Meeting. A recording will be made for administrative purposes and will be available to Councillors.

1.3     Acknowledgement of Country

I would like to acknowledge the Traditional Custodians of the land on which we meet today, the people of the Wiradjuri Nation.  I pay my respects to Elders past and present, and extend those respects to Aboriginal Peoples of Orange and surrounds, and Aboriginal people here with us today.

1.4     Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests

The provisions of Chapter 14 of the Local Government Act, 1993 (the Act) regulate the way in which Councillors and designated staff of Council conduct themselves to ensure that there is no conflict between their private interests and their public role.

The Act prescribes that where a member of Council (or a Committee of Council) has a direct or indirect financial (pecuniary) interest in a matter to be considered at a meeting of the Council (or Committee), that interest must be disclosed as soon as practicable after the start of the meeting and the reasons given for declaring such interest.

As members are aware, the provisions of the Local Government Act restrict any member who has declared a pecuniary interest in any matter from participating in the discussion or voting on that matter, and requires that member to vacate the Chamber.

Council’s Code of Conduct provides that if members have a non-pecuniary conflict of interest, the nature of the conflict must be disclosed. The Code of Conduct also provides for a number of ways in which a member may manage non pecuniary conflicts of interest.

Recommendation

It is recommended that Councillors now disclose any conflicts of interest in matters under consideration by the Council at this meeting.

COUNCIL MEETING ADJOURNS FOR THE CONDUCT OF THE OPEN FORUM

 

COUNCIL MEETING RESUMES

 

2       Mayoral Minutes

Nil     

3       Confirmation of Minutes of Previous Meeting

RECOMMENDATION

That the Minutes of the Ordinary Meeting of Orange City Council held on 5 April 2022 (copies of which were circulated to all members) be and are hereby confirmed as a true and accurate records of the proceedings of the Council meeting held on 5 April 2022.

 

Attachments

1        Minutes of the Ordinary Meeting of Orange City Council held on 5 April 2022



ORANGE CITY COUNCIL

 

MINUTES OF THE

Ordinary Council Meeting

HELD IN Council Chamber, Civic Centre, Byng Street, Orange

ON 5 April 2022

COMMENCING AT 6.31pm


 1      Introduction

Attendance

Cr J Hamling (Mayor), Cr K Duffy (via Zoom), Cr J Evans (via Zoom), Cr G Floyd, Cr F Kinghorne, Cr D Mallard, Cr M McDonell, Cr T Mileto, Cr S Peterson (via Zoom), Cr G Power (Deputy Mayor), Cr J Whitton

Chief Executive Officer, Director Corporate and Commercial Services, Director Development Services, Director Community, Recreation and Cultural Services, Director Technical Services, Manager Engineering Services, A/Manager Corporate Governance, A/Executive Support Manager

 

1.1     APOLOGIES

 

RESOLVED - 22/088                                                                    Cr J Whitton/Cr M McDonell

That the apologies be accepted from Cr T Greenhalgh for the Council Meeting of Orange City Council on 5 April 2022 and accept that Cr Evans, Cr Duffy and Cr Peterson attend this meeting via Zoom.

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr T Greenhalgh, Cr F Kinghorne,

Cr D Mallard, Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

1.2     LIVESTREAMING AND RECORDING

The Mayor advised that the meeting was being livestreamed and recorded.

 

1.3     OPENING PRAYER

PASTOR PAT FARRELLY OF THE EVER UPWARD APOSTOLIC CENTRE LED THE COUNCIL IN PRAYER

 

1.4     ACKNOWLEDGEMENT OF COUNTRY

The Mayor conducted an Acknowledgement of Country.

 

1.5     Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests

 

Cr Mileto declared a non-pecuniary, non-significant interest in FPC Item 2.1 Future City Assistance Fund as he knows the applicant personally and will leave the Chamber and not vote on this item.

Cr Kinghorne also declared a non-pecuniary, non-significant interest in PDC Item 2.2 Information Report – Employment Zones Reforms as she has a business in the CBD and will leave the Chamber and not vote on this item.

Cr Kinghorne also declared a pecuniary, significant interest in PDC Item 2.5 Development Application DA 372/2021(1) – 75 Rossi Drive, Clifton Grove as her husband does geotechnical work on 75 Rossi Drive

Cr Hamling declared a non-pecuniary, non-significant interest in Item 5.5 Tourism Services Contract – Orange 360 – Extension to 31 December 2022 as he is a Board member of Orange360 and will leave the Chamber and not vote on this item.

Cr  Power declared a non-pecuniary, non-significant interest in Item 5.5 Tourism Services Contract – Orange 360 – Extension to 31 December 2022 – as he is a Board member of Orange360 and will leave the Chamber and not vote on this item.

Cr Evans declared a non-pecuniary, significant interest in Item 5.5 Tourism Services Contract – Orange 360 – Extension to 31 December 2022 – as his business is a  member of Orange360 and will leave the Chamber and not vote on this item.

Cr Kinghorne declared a pecuniary, significant interest in Closed Item 6.2 Health Infrastructure Agreement as her husband’s business does regular work for Health Infrastructure and she will leave the Chamber and not vote on this item.

Cr Peterson declared a non-pecuniary, non-significant interest in Closed Item 6.2 Health Infrastructure Agreement as he is an employee of NSW Health and will leave the Chamber and not vote on this item.

 

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL ADJOURNED FOR THE CONDUCT OF THE OPEN FORUM AT 6.37PM.

 

Mr Simon Price spoke to Item 2.4 Environmental Assessment Lake Canobolas Water and Sewer Reticulation Project.

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL RESUMED AT 6.42PM.

 

2       Mayoral Minutes

Nil


 

3       Confirmation of Minutes of Previous Meeting

RESOLVED - 22/089                                                                        Cr J Whitton/Cr D Mallard

That the Minutes of the Ordinary Meeting of Orange City Council held on 15 March 2022 (copies of which were circulated to all members) be and are hereby confirmed as a true and accurate record of the proceedings of the Council meeting held on 15 March 2022.

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

 

RESOLVED - 22/090                                                                         Cr G Floyd/Cr F Kinghorne

That the Minutes of the Extraordinary Meeting of Orange City Council held on 25 March 2022 (copies of which were circulated to all members) be and are hereby confirmed as a true and accurate record of the proceedings of the Council meeting held on 25 March 2022.

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

 

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL ADJOURNED FOR THE CONDUCT OF THE POLICY COMMITTEE MEETINGS AT 6.43PM.

 

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL RESUMED AT 7.21PM.

 

4       Notices of Motion/Notices of Rescission

4.1     Australian Defence Force Strategic Sovereign Partner

TRIM Reference:        2022/463

RESOLVED - 22/091                                                                           Cr J Whitton/Cr T Mileto

That Council formulate a Working Party and a strategic plan to promote and position Orange and the Central West as a strategic sovereign partner with the Australian Defence Forces.

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

 

 

5       General Reports

5.1     Recommendations and Resolutions from Policy Committees

TRIM Reference:        2022/468

RESOLVED - 22/092                                                                    Cr J Whitton/Cr M McDonell

1.       That the resolutions made by the Planning and Development Committee at its meeting held on 3 March 2022 be noted.

2.       That the resolutions made by the Infrastructure Policy Committee at its meeting held on 3 March 2022 be noted.

3.       That the resolutions made by the Environmental Sustainability Policy Committee at its meeting held on 3 March 2022 be noted.

4.       That the resolutions made by the Finance Policy Committee at its meeting held on 3 March 2022 be noted.

 

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

 

5.2     National General Assembly - 2022

TRIM Reference:        2022/435

RESOLVED - 22/093                                                                    Cr J Whitton/Cr M McDonell

That Council resolves that Councillors Duffy, McDonell, Greenhalgh, Mallard and Whitton  attend at the National General Assembly 19 – 22 June, 2022.

That Council ensure there is a motion in relation to Local Government being recognised in the Australian Constitution submitted to the National General Assembly 2022.

 

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

 

5.3     NSW Australian Local Government Women's Association Conference

TRIM Reference:        2022/347

RESOLVED - 22/094                                                                    Cr M McDonell/Cr J Whitton

That Council resolves  that Councillors McDonell and Greenhalgh attend the NSW Australian Local Government Women’s Association Conference to be held 7 – 9 July, 2022.

 

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

5.4     Destination & Visitor Economy Conference 2022

TRIM Reference:        2022/433

RESOLVED - 22/095                                                                           Cr D Mallard/Cr G Power

That Council resolves that Councillors Power, Mileto and Evans attend the Destination & Visitor Economy Conference 2022 to be held 17 – 19 May, 2022.

 

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

 

Cr Hamling and Cr Power left the Chamber at 7.36pm

Cr Evans was placed in the waiting room on Zoom at 7.36pm

Cr Mileto chaired the meeting for Item 5.5

5.5     Tourism Services Contract - Orange360 - Extension to 31 December 2022

TRIM Reference:        2022/277

Cr Power declared a non-pecuniary, non-significant interest in this Item as he is a Board member of Orange360 and left the Chamber and did not vote on this item.

Cr Hamling declared a non-pecuniary, non-significant interest in this Item as he is a Board member of Orange360 and left the Chamber and did not vote on this item.

Cr Evans declared a non-pecuniary, significant interest in this as his business is a  member of Orange360 and left the Chamber and did not vote on this item.

RESOLVED - 22/096                                                                        Cr J Whitton/Cr D Mallard

That Council resolves to extend the Tourism Services Contract provided by TDO Ltd trading as Orange360 for six months until 31 December 2022.

 

For: Cr K Duffy, Cr G Floyd, Cr F Kinghorne, Cr D Mallard, Cr M McDonell, Cr T Mileto,

Cr S Peterson, Cr J Whitton

Against: Nil

Absent: Cr J Hamling, Cr J Evans, Cr T Greenhalgh, Cr Power

 

 

Cr Hamling and Cr Power returned to the Chamber at 7.39pm

Cr Evans was admitted back into the meeting on Zoom at 7.39pm

 

 


 

5.6     Indoor Playground

TRIM Reference:        2022/375

MOTION                                                                                      Cr M McDonell/Cr J Whitton

That Council:

1.   Secure a site for the operation of an indoor recreation facility for the period of 1 May 2022 to 30 August 2022;

2.   Council secure the rental of indoor play equipment for the operation of the indoor recreation facility; and

3.   Council conduct an expression of interest process for the operation of the indoor recreation facility.

AMENDMENT                                                                                         Cr J Evans/Cr T Mileto

That Council:

  1. Secure a site for the operation of an indoor recreation facility for the period of 1 May 2022 to 30 August 2022;

2.      Council conduct an expression of interest process for the operation of the indoor recreation facility.

For: Cr J Evans, Cr T Mileto, Cr S Peterson,

Against: Cr J Hamling, Cr K Duffy, Cr G Floyd, Cr F Kinghorne, Cr D Mallard, Cr M McDonell,

Cr G Power , Cr J Whitton

Absent: Cr T Greenhalgh

The amendment on being put to the meeting was lost.

The motion on being put to the meeting was carried.

RESOLVED - 22/097                                                                    Cr M McDonell/Cr J Whitton

That Council

1.   Secure a site for the operation of an indoor recreation facility for the period of 1 May 2022 to 30 August 2022;

2.   Council secure the rental of indoor play equipment for the operation of the indoor recreation facility; and

3.   Council conduct an expression of interest process for the operation of the indoor recreation facility.

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh

 

 

 

 

Cr Mileto asked if this was a responsible spend of ratepayers money over a 4 month period

Director Community Recreation and Cultural Services responded by saying that it is difficult

because we know through the Community Strategic Plan process there is desire for this facility,

we are also aware there are commercial interests in Orange to establish a permanent fixture.

There is a DA process in place that will allow this to occur. If we want something up for this

winter it is unlikely a commercial interest would do it in this short space of time. It is up to

Council then to provide this service for this trial period.

 

Cr Mileto asked if Council were to pursue this idea, would it be a joint tenancy, who would

wear the liability of the lease

Director Community Recreation and Cultural Services responded by saying the operator would

have to have their own insurances, this would be a requirement for the delivery of the

program.

 

Cr Floyd asked if there was anyway Council could offset some of the fees by advertising space

in an area like this to get remuneration back

Director Community Recreation and Cultural Services responded by saying that this would

have to be discussed with the owner of the premises whether they would be prepared to do

that. There is any number of things to value add, coffee etc. That’s the value of testing through

an EOI.

 

5.7     Reduction in fees request - Scout Camp

TRIM Reference:        2022/428

RESOLVED - 22/098                                                                        Cr J Whitton/Cr D Mallard

That Council reduce the fees by 50% from $18 to $9 per night for four nights for the St Johns Ambulance Cadet Camp 2022 to be held from the 10 to 14 April.

 

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr F Kinghorne, Cr D Mallard,

Cr M McDonell, Cr T Mileto, Cr S Peterson, Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh


 

6       Closed Meeting

In accordance with the Local Government Act 1993, and the Local Government (General) Regulation 2005, in the opinion of the General Manager, the following business is of a kind as referred to in Section 10A(2) of the Act, and should be dealt with in a Confidential Session of the Council meeting closed to the press and public.

In response to a question from the Mayor, the Chief Executive Officer advised that no written submissions had been received relating to any item listed for consideration by the Closed Meeting of Council.

The Mayor extended an invitation to any member of the public present at the meeting to make a presentation to the Council as to whether the meeting should be closed for a particular item.

RESOLVED - 22/099                                                                        Cr J Whitton/Cr D Mallard

That Council adjourn into a Closed Meeting and members of the press and public be excluded from the Closed Meeting, and access to the correspondence and reports relating to the items considered during the course of the Closed Meeting be withheld unless declassified by separate resolution. This action is taken in accordance with Section 10A(2) of the Local Government Act, 1993 as the items listed come within the following provisions:

6.1     Submission Redactions March 2022

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to (e) information that would, if disclosed, prejudice the maintenance of law.

6.2     Health Infrastructure Agreement

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to (c) information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business and (g) advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege.

Information contained in this paper is subject to legal professional privilege and is strictly confidential. Any disclosure of this paper, including a verbal disclosure of its content or conclusions, beyond Council officers directly involved in this matter may result in the loss of legal professional privilege and cause damage to the Council’s legal and financial position. Councillors have a good faith duty to strictly maintain confidentiality of privileged communications, and any failure to do so may result in a penalty under section 664 of the Local Government Act 1993 and action under the Code of Conduct.

The Mayor declared the Ordinary Meeting of Council adjourned for the conduct of the Closed Meeting at 8.11pm.

The Mayor declared the Ordinary Meeting of Council resumed at 8.18pm.

7       Resolutions from Closed Meeting

The Chief Executive Officer read out the following resolutions made in the Closed Meeting of Council.

6.1     Submission Redactions March 2022

TRIM Reference:        2022/276

RESOLVED - 22/110                                                                           Cr T Mileto/Cr J Whitton

That the information in this report be acknowledged.

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, Cr D Mallard, Cr M McDonell, Cr T Mileto,

Cr S Peterson, Cr G Power , Cr J Whitton, Cr F Kinghorne

Against: Nil

Absent: Cr T Greenhalgh


Cr Kinghorne left the Chamber at 8.14pm

Cr Peterson was placed in the waiting room on Zoom at 8.14pm.

6.2     Health Infrastructure Agreement

TRIM Reference:        2022/413

Cr Kinghorne declared a pecuniary, significant interest this Item 6 as her husband’s business does regular work for Health Infrastructure and she left the Chamber and did not vote on this item.

Cr Peterson declared a non-pecuniary, non-significant interest in this Item as he is an employee of NSW Health and left the Chamber and did not vote on this item.

Cr McDonell declared a non-pecuniary, non-significant interest in this Item as she is an employee of NSW Health and remained in the Chamber and voted on this item.

RESOLVED - 22/111                                                                           Cr T Mileto/Cr J Hamling

That Council resolves:

1        That the report by the Manager of Corporate and Community Relations be acknowledged.

2        To offer to Health Infrastructure the arrangements as outlined in Option 2 in the conclusion of this report.

3        That authority be granted for the use of the Council Seal on any documentation if required.

For: Cr J Hamling, Cr K Duffy, Cr J Evans, Cr G Floyd, , Cr D Mallard, Cr M McDonell, Cr T Mileto,

Cr G Power , Cr J Whitton

Against: Nil

Absent: Cr T Greenhalgh,  Cr F Kinghorne, Cr S Peterson

 

Cr Kinghorne returned to the Chamber at 8.17pm

Cr Peterson was admitted back into the meeting via Zoom at 8.17pm

 

The Meeting Closed at 8.20pm.

This is Page Number 15 and the Final Page of the Minutes of the Ordinary Meeting of Orange City Council held on 5 April 2022.

 


Council Meeting                                                                                               19 April 2022

THIS PAGE IS BLANK


Council Meeting                                                                                               19 April 2022

4       Notices of Motion/Notices of Rescission

4.1     Notice of Motion - NSW Rugby League - High Profile Games in Orange

RECORD NUMBER:       2022/491

 

 

I, CR Glenn Floyd wish to move the following Notice of Motion at the Council Meeting of 19 April 2022:

 

Motion

That Council resolves to:

1     Engage willing NRL clubs with the prospect of initiating a long-term association with the City of Orange.

2     Seek to formalise such a relationship for the purposes of maximising the potential of the future Orange Sports Precinct in attracting high profile sporting fixtures, benefiting tourist visitation, spend and local entertainment.

3     Include in any such arrangement that any NRL club affiliated with the City of Orange provide coaching clinics and sports development opportunities for local schools and sporting organisations, and player meet-and-greet opportunities.

4     Consider in the selection of any prospective NRL club affiliation, the club’s relationship to Orange, local fan-base and the club’s proximity to Orange.

5       Report to the Chamber on the progress of this endeavour, all meetings and aspects of negotiations undertaken, and time frames relating to any proposal or agreement.

 

Background

With the planning and progress of the new sporting precinct well underway, now would be an opportune time to enter negotiations like the one the Penrith Panthers NRL club have with the Bathurst community.

The opportunity to bring a high-profile NRL club to Orange would be an economic and social windfall of immense proportions. Not only putting Orange on the map as a local sporting hub but Australia wide and Internationally with the guaranteed media coverage. Not only would Orange businesses and the hospitality sector benefit, but schools and junior sporting bodies would also reap the benefits of coaching clinics and player meet and greet sessions. This could also lead to other codes such as Rugby Union and Soccer bringing high profile games to Orange.

 

Signed Cr Glenn Floyd

 

 


Council Meeting                                                                                               19 April 2022

 

 

5       General Reports

5.1     Recommendations and Resolutions from Policy Committees

TRIM REFERENCE:        2022/554

AUTHOR:                       Janessa Constantine, Manager Corporate Governance    

 

 

EXECUTIVE SUMMARY

Council’s Policy Committees (Planning and Development Committee, Employment and Economic Development Policy Committee, Infrastructure Policy Committee, Sport and Recreation Policy Committee, Environmental Sustainability Policy Committee, Finance Policy Committee and Services Policy Committee) have delegation to determine matters before those Committees, with the exception of items that impact on Council’s Delivery Operational Plan.

This report provides minutes of the Policy Committees held since the last meeting.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.1 Collaborate - Provide representative, responsible and accountable community governance”.

Financial Implications

Nil

Policy and Governance Implications

Nil

 

Recommendation

1        That the Minutes of the Planning and Development Committee at its meeting held on 5 April 2022 be and are hereby confirmed as a true and accurate record of the proceedings.

2        That the Minutes of the Infrastructure Policy Committee at its meeting held on 5 April 2022 be and are hereby confirmed as a true and accurate record of the proceedings.

3        That the Minutes of the Finance Policy Committee at its meeting held on 5 April 2022 be and are hereby confirmed as a true and accurate record of the proceedings.

 

further considerations

Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.


 

SUPPORTING INFORMATION

Planning and Development Committee

At the Planning and Development Committee meeting held on 5 April 2022, all resolutions were made under delegation, and the minutes are presented for adoption.

Infrastructure Policy Committee

At the Infrastructure Policy Committee meeting held on 5 April 2022, all resolutions were made under delegation, and the minutes are presented for adoption.

Finance Policy Committee

At the Finance Policy Committee meeting held on 5 April 2022, all resolutions were made under delegation, and the minutes are presented for adoption.

 

 

Attachments

1          PDC Minutes - 5 April 2022, D22/21505

2          IPC Minutes - 5 April 2022, D22/21504

3          FPC Minutes - 5 April 2022, D22/21503

 

 


Council Meeting                                                                                                                        19 April 2022

Attachment 1      PDC Minutes - 5 April 2022







Council Meeting                                                                                                                        19 April 2022

Attachment 2      IPC Minutes - 5 April 2022





Council Meeting                                                                                                                        19 April 2022

Attachment 3      FPC Minutes - 5 April 2022



Council Meeting                                                                                               19 April 2022

5.2     Draft Community Strategic Plan (CSP) Draft Delivery Program 2022/2026 and Operational Plan 2022/2023

RECORD NUMBER:       2022/416

AUTHOR:                       Jason Cooke, Chief Financial Officer    

 

 

EXECUTIVE Summary

The stated intent of recent budgets that will carry through the 2022/23 budget is as follows:

“Orange is a prosperous and growing City with a changing demographic as young families realise that Orange is a place to stay and grow with all of the opportunities offered by larger metropolitan centres with the added benefit of a country lifestyle. As Orange grows it is time to look ahead and build the social infrastructure that the City and its next generations will need in 2030 and beyond.

Through prudent investment and planning, previous Councils have built the Council finances into a solid state.  With historically low interest rates and significant equity, it is considered that now is the time to spend and develop Orange into a City of the future.  In addition, the significant capital spend proposed will inject significant stimulus into the economy at a time where the COVID-19 issue is creating great uncertainty.”

The Draft Budget 22/23 has been developed through consultation with the community via the Community Strategic Plan, with Councillors over the last four months and with Managers and Directors via a budget bid process.

The Draft Budget 22/23 will continue the trend of deficit budgets to a lesser extent as Council moves towards a balanced overall budget in 2023/24.   Council makes this decision to continue the stimulus impact on the City.

The Draft Budget 22/23 includes a capital spend of $68.2M in 2022/2023 and $196.2M over the four year period 2022/2023 to 2025/2026.

Significant projects included in the proposed four year spend to 2025/26 include:

FutureCity CBD upscale and renewal

Orange Regional Conservatorium 

Over $1.5M on footpath rehabilitation and construction

Airport upgrades and improvements

Playground upgrades

Mount Canobolas Mountain Bike Trail

Sporting Precinct development

Wade Park grandstand roof

Renewable projects

Forest Rd East Fork railway bridge duplication

Detention basins

Forest Rd – Cadia Rd to Boundary

Huntley Rd progressive upgrades

Icely Road WTP upgrades

Woodward St road under rail

McLachlan St bridge

Blackman’s Swamp stormwater harvesting Stage 2

Gosling Creek dam upgrade investigation

East Orange Channel - $1.6M

Southern Feeder Rd works

Smart Meters - Water

Waste Cell 4 construction

Roundabout Escort Way & Ploughmans Lane - $4M

Roundabout Moulder and Peisley streets - $850K

March St underpass

 

Double Storey Carpark

Aquatic Centre Expansion and Improvements

Sewer Cadia UV design & construction - $4.4M

Shiralee water supply augmentation

Orange Civic Theatre - $6M

Sewer aeration upgrade

Industrial Land Projects

 

COVID-19

Given the COVID-19 situation is still somewhat fluid, variations through both additional funding and additional expenditure may be required to the Budget throughout 2022/23. The Council is able, through its quarterly variation process, to accommodate changes to the Budget moving forward, and this can be used again to bring forward projects or make adjustments for COVID-19 impacts that are unable to be incorporated into the Annual Budget at 1 July 2022.

Integrated Planning and Reporting

In accordance with the Integrated Planning and Reporting requirements set out in the Local Government Act 1993, this report presents:

1    Draft Community Strategic Plan

2    Draft Operational Plan 2022/2023 under the draft Delivery Program 2022/2023 to 202025/2026. This includes:

a      2022/23 Draft Budget

b     2022/23 Draft Statement of Revenue Policy

c      2022/23 Draft Fees and Charges

3    Resourcing Strategy – Long Term Financial Plan 2022/23 to 2031/32

4    Resourcing Strategy - Workforce Management Strategy 2022/2023 to 2026/2027

5    Resourcing Strategy – Asset Management Strategy and Plans 2022/2023 to 2026/2027

 

The Annual Budget 2022/23 must be approved by the Council no later than 30 June 2022.

If approved for public exhibition by the Council, the attached drafts will be published for community feedback and response for 28 days.  This is the period set out in the Act in which Councillors and the community can put forward new initiatives and changes to priorities.

Following exhibition, management will revise the Budget considering Councillor and community priorities. 

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.2 Collaborate - Ensure financial stability and support efficient ongoing operation”.

Financial Implications

The proposed Operational Plan identifies the operational and subsequent budgetary impacts arising in the delivery of the levels of service proposed. The financial implications of this investment are significant and ambitious. The finance team with the CEO and Executive have however modelled the proposed program of works so Council can continue its operational programmes whilst at the same time committing significant capital funds.

Policy and Governance Implications

The Local Government Act 1993 requires Council to exhibit the documents for a minimum of 28 days.

It is proposed to exhibit the plans for 28 days from 20 April 2021. Following exhibition, it is intended that community submissions and the draft budget documents will be brought back to a meeting on 7 June 2022.

 

Recommendation

That Council resolves:

1        To place on public exhibition for a minimum of 28 days the following documents:

·    Draft Community Strategic Plan

·    Draft Delivery Program 2022/2023 to 2025/2026

·    Draft Operational Plan 2022/2023

·    Draft Budget 2022/2023

·    Draft Fees and Charges 2022/2023

·    Draft Long Term Financial Plan 2022/2023 to 2031/2032

·    Workforce Management Strategy 2022/2023 to 2026/2027

·    Asset Management Strategy 2023-2042

2        To adopt Strategic Policy ST009 – Revenue and Pricing and Strategic Policy and ST007 – Asset Management which have not had any changes since their last adoption.

 

further considerations

The recommendation of this report has been assessed against Council’s other key risk categories and the following comments are provided:

 

 

 

Service Delivery

The Delivery Program and Operational Plan identifies levels of service for the range of Council’s operations. These levels of service are also identified as part of the Asset Management planning documents.

The Delivery Program and Operational Plan identifies the key services Council will deliver over the term of the Plan, and quarterly performance indicators will provide a measure of Council’s performance in achieving these objectives.

 

Stakeholders

The Delivery Program and Operational Plan identifies key agencies and other groups that are stakeholders in key Council activities. The Plan identifies the range of government agencies that provide advocacy, funding and partnerships to Council.

 

SUPPORTING INFORMATION

Since 2012, all NSW Councils have been required to prepare a suite of documents under the Integrated Planning and Reporting (IP&R) framework outlined in the Local Government Act and its Regulations.

In accordance with the Integrated Planning and Reporting requirements set out in the Local Government Act 1993, this report presents the draft 2022/23 Operational Plan, the 2022/26 Delivery Program and the Community Strategic Plan (CSP), which have been reviewed and updated. The documents are recommended for public exhibition.

At the conclusion of the exhibition period Council will be presented with any submissions and any amendments to these two documents to be considered at a subsequent Council meeting. 

A review of the Plans has been undertaken with a focus on developing clear and concise actions and performance measures to allow the community to better understand Council’s activities over the life of the Plan.

A delayed election timeframe because of COVID-19 created a significantly compressed process for the creation of these plans. This necessitated developing the plans concurrently meaning there is still some work to be done on a complete alignment of the documents.

This report foreshadows a proposed mini-budget for September this year. This mini budget will allow this alignment to proceed and to better understand some of the implications of the changing priorities revealed in the community engagement to develop the draft CSP.

The current Community Strategic Plan has been reviewed and a new draft CSP developed.

The Framework is outlined in the following diagram:

Diagram

Description automatically generated

The following is reproduced from the NSW Office of Local Government requirements of the Integrated Planning and Reporting Framework:

1.   The Community Strategy Plan describes the community’s vision and aspirations for a period of ten of or more years. This is the community’s plan for its future. Council will have a custodial role in engaging, refining and preparing the plan on behalf of its community.  As it is possible the community will identify aspirations that are not council’s full responsibility role to implement, council may need to partner with state government agencies and community groups to deliver the plan.

 

Key requirements:

·      The plan must be for a minimum of 10 years.

·      Identify community priorities and aspirations.

·      Includes a vision, strategic objectives and strategies to achieve those objectives.

·      Must address the quadruple bottom line: social, environmental, economic and civic leadership issues.

·      Based on social justice principles: equity, access, participation and rights.

·      Give due consideration to the State Plan and other relevant state and regional plans.

·      The community must be engaged in the development of the plan in line with the Community engagement strategy created for the purpose.

·      Must be endorsed by council after being on public exhibition for at least 28 days.

The Community Strategic Plan addresses four key questions for the community:

·      Where are we now?

·      Where do we want to be in ten years’ time?

·      How will we get there?

·      How will we know when we have arrived?

The implementation of the CSP is supported by a suite of integrated plans that include actions to support the strategies identified in the CSP.

2.   Delivery Program – four-year plan that sets out the strategies from the CSP that will be priorities for the current council term.

3.   Operational Plan – annual plan containing detailed actions from the Delivery program.

4.   Resourcing Strategy – a suite of three key plans that support the implementation of the CSP including the Long-term Financial Strategy, Workforce Management Strategy and Asset Management Strategy.

community strategic plan diagram

At the end of each council term a report is provided to the community outlining progress towards the achievement of outcomes identified in the Community Strategic Plan.

Community engagement

Orange City Council commenced the on-line engagement for the new CSP in November 2021. This moved to a more detailed on-line engagement and face to face forums, focussed stakeholder groups and pop-ups in February this year. The questions asked, participation, strengths, challenges changes and focus for future projects are listed in the front of the attached draft CSP.

It should be noted that this is a plan of the community and council’s role will vary.

Whilst Orange City Council takes the lead in the preparation and implementation of the CSP, all levels of government, businesses, industry groups, community groups and individuals will share the responsibility for achieving our long-term community goals.

The Plan outlines the Council’s role in the delivery of each priority, described using the following terms:

·    Provide – services, facilities, infrastructure, programs, planning, and engagement

·    Collaborate – partner with the community, business and industry, other councils, and other tiers of government

·    Advocate – amplify the voice of our community to get the best possible outcomes

 As part of the engagement process the four themes from the existing CSP were tested and good support was received to retain them.

They four existing themes in the CSP are:

1.   Live

This theme recognises the importance of encouraging healthy lifestyles, community pride and a sense of belonging. This can be achieved by maintaining a safe, caring and connected community, with active community participation supported by enhanced cultural and recreational facilities and inclusive services that cater to all our residents. The beautiful parks, gardens and natural assets of our City are amongst our most cherished assets and contribute to making Orange a desirable place to live work and play.

2.   Preserve

This theme ensures that the unique natural, cultural, social, and historical aspects of our community are preserved while recognising the need for growth and development. The community was strong in its desire to be more sustainable by promoting renewable energy, reducing waste, and protecting our natural resources. There is also an expectation for infrastructure to support a growing city, with roads footpaths, parking and a vibrant CBD seen as priorities.

 

3.   Prosper

This theme focuses on providing the community with positive choices for investment employment and study. It includes strengthening and diversifying our economy by targeting new and innovative industries, as well as fostering our existing strengths such as medical services, mining, local food and wine production and tourism. Orange residents are keen to see more engagement between Council, local business, and industry.

4.   Collaborate

This theme looks at forging a collaborative community that engages with open and ongoing decision making, developing future leaders and supporting community groups to deliver services and programs were identified as priorities during the consultation. The community is looking to Council to provide leadership, guidance, and responsible governance.

Each theme outlines strategic objectives based on community feedback, envisages where we want to be, how we will get there, Council’s role, essential partners and collaborators and measures to track progress.

Based on community aspirations and priorities identified in the engagement the main changes made to new draft Community Strategic Plan are to provide more for children and young people to do, address housing availability and affordability, the cost of living and prioritising the environment.

The main additions to the draft plan are as follows:

Live

Objective 2: A healthy and active community that is supported by sport and recreational infrastructure

2.4.         Plan and construct an extensive network of user-friendly paths connecting the city for active travel.

Objective 3: A friendly environment where people feel safe and included.

3.3.      Partner to support victims of family violence and work towards a reduction in family violence incidences.

3.4.       Recognise and celebrate our Aboriginal culture.

3.5.       Address the growing social and class divide within the city.

3.6.      Take proactive steps to improve access, inclusion, equity and diversity in our community.

Objective 5: Responsive programs and services that support our community’s lifestyle and social needs.

5.1.      Provide services to people at all stages of life.

5.4.      Use available levers and partnerships to improve housing supply, diversity and affordability.

5.5.      Advocate for improved mental health services.

Preserve

Objective 7: Sustainable growth and respectful planning that values the natural environment.

7.4.      Take action to ensure greater stewardship and enjoyment of both Mt Canobolas and Lake Canobolas.

Prosper

Objective 11: Sustainable tourism, events, and visitor experiences.

11.3.    Strengthen the food culture and night-time economy within Orange.

Objective 13: Transport services, connectivity, and infrastructure that support community, tourism, business and industry.

13.3.    Support initiatives for improved connectivity between Orange and capital cities and regional towns.

Objective 14: More for young people to do.

14.1     Provide play parks and spaces that meet the needs of a broad range of ages.

14.2     Partner to provide activities and program for young people.

14.3     Attract indoor attractions and develop indoor venues that allow year-round, all-weather places for young people and their families to enjoy.

There were some significant community responses around some issues that are not added above as they already existed in the current plan and were transferred to the draft plan.

For example, sustainability was a recurring theme, but the following is contained in both the existing and the draft plans as follows:

Objective 7: Sustainable growth and respectful planning that values the natural environment.

7.1.      Plan for growth and development that balances liveability with valuing the local environment.

7.2.      Ensure best practice use of renewable energy options for Council and community projects.

7.3.      Enact policies and practices to protect the sustainability and security of water destined for potable supply for the water catchment area.

Also attached to this report is the Community Engagement Report it provides some finer detail on the engagement process and community views.

Delivery Program (four years)

“The Delivery Program turns the strategic goals found in the Community Strategic Plan into actions. It is the point where a council makes a commitment to the Community Strategic Plan, and act upon those issues that are within its area of responsibility.

The Delivery Program is the key ‘go to’ document for the Councillors. It identifies all the key activities the council has committed to undertake over its four-year term. All plans, projects, activities, and funding allocations of the council must be directly linked to the Delivery Program”.

Operational Plan (one year)

“The Operational Plan details specific individual projects and activities that will be undertaken in the next year to achieve the commitments made in the Delivery Program.

The Operational Plan includes the Council’s detailed annual budget, along with the council’s Statement of Revenue Policy, which includes the proposed rates, fees and charges for that financial year”.

2022/23 Rates

Tables in this report include the current financial year (2021/22) original budget as adopted in the current Delivery Program and Operational Plan.

A 0.7 per cent increase in rates was decided by IPART for General Rates (Residential, Business, Farmland). This can potentially be increased to 2.5 per cent if Council decides to apply for an additional special variation of 1.8 per cent and is successful with this application. Council has budgeted 2.5 per cent on the assumption that Council will resolve to apply for the additional special variation and is successful. The overall impact of this increase on an average assessment is:

1    Residential assessments will increase by $39.82, and total rates and charges $1.33 per week (or $69.17 per annum) which is 2.72 per cent.

2    Business assessments will increase by $68.56 or $1.32 per week.

Please note the above totals do not include water or non-residential sewer charges which are billed separately.

Proposed increases in water and sewer fees and charges are shown below and are based on long term financial models that ensure future capital needs and operating costs can continue to be met.

Fund

2021/22

2022/23

2023/24

2024/25

2025/26

Water

2.0%

2.0%

2.0%

2.0%

2.0%

Sewer

2.5%

2.0%

2.0%

2.0%

2.0%

Pensioners receive a statutory reduction of $250 off their General Rates & $87.50 off both water and sewer charges. Council also offers a voluntary rebate of either ten per cent or five per cent of rates and charges. The additional voluntary rebate costs Council approximately $480,000 per annum.

 

2022/23 Operating Position

The draft Operational Plan proposes a consolidated operating deficit (before capital) of $992,435 for 2022/23. The operating position shows how Council proposes to expend money on items other than those classified as capital.  Operating expenditure is Council’s year to year expenditure on providing services.

The distribution across the funds is as follows with the table also showing the draft operating positions in the subsequent three years of the Plan:

 

 


Operating Result (by Fund)

 

2021/2022
Dec Revised

2022/2023
Proposed

2023/2024
Proposed

2024/2025
Proposed

2025/2026
Proposed

General Fund

3,495,471

1,793,503

2,400,330

2,522,498

1,830,964

Water Fund

(66,617)

541,629

(135,128)

(89,602)

(139,247)

Sewer Fund

(1,257,235)

(1,342,697)

(1,322,097)

(1,210,300)

(1,175,691)

Total (All Funds)

2,171,619

992,435

943,105

1,222,596

516,026

A surplus operating position is an indicator of financial sustainability.  A surplus result for Council is indicated by red bracketed numbers in the table above and shows the expected deficit result for 2022/23.

 

 

2022/23 Overall Position (including capital)

The draft Operational Plan proposes a consolidated overall deficit (including capital) of $3,489,425 for 2022/23. The distribution across the funds is as follows with the table also showing the draft overall result in the subsequent three years of the Plan:

 

 


Overall Result (by Fund)

 

2021/2022
Dec Revised

2022/2023
Proposed

2023/2024
Proposed

2024/2025
Proposed

2025/2026
Proposed

General Fund

4,739,929

3,876,990

3,499,198

4,009,100

2,129,656

Water Fund

(910,204)

(285,611)

(1,546,008)

543,597

(2,270,396)

Sewer Fund

(1,348,977)

(101,954)

(2,458,706)

(1,958,162)

(2,399,078)

Total (All Funds)

2,480,748

3,489,425

(505,516)

2,594,535

(2,539,818)

A surplus result for Council is indicated by red bracketed numbers in the table above and shows the expected deficit result for 2022/23.

The capital budget proposes to deliver a combined total of projects of $68.2M in 2022/23. Over the next four years a total capital spend of $196.2M is proposed.  This expenditure is distributed across the funds and the expenditure levels over the subsequent three years are also shown:

 

Fund

2021/2022
Original Adopted

2022/2023
Proposed

2023/2024
Proposed

2024/2025
Proposed

2025/2026
Proposed

General

61,900,305

 41,183,167

 26,734,067

36,519,359

10,402,148

Water

18,905,609

 18,956,068

 10,646,672

7,482,329

 8,287,582

Sewer

11,199,860

 8,069,617

 10,209,345

10,500,855

7,238,492

Consolidated

 92,005,774

 68,208,852

 47,590,084

 54,502,543

 25,928,222

 

Contingent Funding Approach

The delivery of this program is partially reliant on State and Federal government grant funding, so the actual value will depend on the level of support provided by the State and Federal government to the Orange community.  Funding for the projects also comes from Council’s own funds and reserves, land/property sales and loans.

While not all projects are assured of other funding, they are included to drive greater value for leverage funding provided by Council. Given the number and spread of projects reliant on co-funding and Council’s contribution to the projects, along with some current exposure to partial grant funding, it is necessary to consider a probability/contingent approach to such projects.

While it would be ideal to procure all co-funded projects, it may not happen, and while seeking such funding, Council revenue is reserved for the projects that may or may not occur.  In this regard, the draft Operational Plan proposes coverage of some of the exposure to partial funding through loan capacity, land sales or reserves. Additionally, should a project not eventuate which relies upon co-funding then it releases Council’s component of the project.    

 

Attachments

1          DRAFT - Community Strategic Plan, D22/19683

2          Community Strategic Plan Community Engagement Report, D22/19678

3          DRAFT - Delivery Program 2022-26, D22/20136

4          DRAFT - Operational Plan 2022-23, D22/20137

5          DRAFT - Budget 2022-23, D22/20735

6          DRAFT - Fees and Charges 2022/23, D22/20565

7          DRAFT - Long Term Financial Plan 2022/2023 to 2031/2032, D22/21075

8          DRAFT - Workforce Management Strategy 2022-27, D22/19814

9          DRAFT - Asset Management Strategy 2023-42, D22/20150

10        DRAFT - Levels of Service 2022, D22/21635

11        FOR ADOPTION - Strategic Policy ST009 - Revenue and Pricing, D22/20633

12        FOR ADOPTION - Strategic Policy ST007 - Asset Management, D22/20630

 

 


Council Meeting                                                                                                                        19 April 2022

Attachment 1      DRAFT - Community Strategic Plan





































Council Meeting                                                                                                                        19 April 2022

Attachment 2      Community Strategic Plan Community Engagement Report

























Council Meeting                                                                                                                         19 April 2022

Attachment 3      DRAFT - Delivery Program 2022-26


























































Council Meeting                                                                                                                         19 April 2022

Attachment 4      DRAFT - Operational Plan 2022-23


































































































Council Meeting                                                                                                                        19 April 2022

Attachment 5      DRAFT - Budget 2022-23















Council Meeting                                                                                                                        19 April 2022

Attachment 6      DRAFT - Fees and Charges 2022/23




























































































































































Council Meeting                                                                                                                        19 April 2022

Attachment 7      DRAFT - Long Term Financial Plan 2022/2023 to 2031/2032





























Council Meeting                                                                                                                        19 April 2022

Attachment 8      DRAFT - Workforce Management Strategy 2022-27
































Council Meeting                                                                                                                        19 April 2022

Attachment 9      DRAFT - Asset Management Strategy 2023-42



































Council Meeting                                                                                                                        19 April 2022

Attachment 10    DRAFT - Levels of Service 2022













Council Meeting                                                                                                                        19 April 2022

Attachment 11    FOR ADOPTION - Strategic Policy ST009 - Revenue and Pricing




Council Meeting                                                                                                                        19 April 2022

Attachment 12    FOR ADOPTION - Strategic Policy ST007 - Asset Management





Council Meeting                                                                                               19 April 2022

5.3     Update on Outstanding and Completed Resolutions of Council including Questions Taken on Notice, Matters Arising and Notices of Motion

RECORD NUMBER:       2022/232

AUTHOR:                       Janessa Constantine, Manager Corporate Governance     

 

 

EXECUTIVE Summary

A list of updates on outstanding resolutions, questions taken on notice, matters arising and notices of motion is provided together for the information of Council. Only matters requiring action to be taken are noted in this report, including outstanding items from the previous Council term. A report is also provided to Council on those Actions completed since the report was last provided to Council at the end of the previous Council term. After items are reported in the Completed Actions Report, items are removed from this listing, however, are available for administrative purposes.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.1 Collaborate - Provide representative, responsible and accountable community governance”.

Financial Implications

Nil

Policy and Governance Implications

Nil

 

Recommendation

That the information provided in the report by the Manager Corporate Governance on Outstanding and Completed Resolutions, Questions Taken on Notice, Matters Arising and Notices of Motion be acknowledged.

 

further considerations

Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.

SUPPORTING INFORMATION

Attached is a listing of tasks requiring action or follow up by Council staff. This list identifies progress on decisions of Council, including Notices of Motion, Questions Taken on Notice and Matters Arising. Upon completion, items will be noted as such and removed after production to Council.

Attachments

1          Outstanding Actions, D22/20291

2          Completed Actions, D22/21180

 

 


Council Meeting                                                                                                                         19 April 2022

Attachment 1      Outstanding Actions











Council Meeting                                                                                                                         19 April 2022

Attachment 2      Completed Actions














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Council Meeting                                                                                               19 April 2022

5.4     Payment of Councillor Superannuation

RECORD NUMBER:       2022/374

AUTHOR:                       Julie Murray, Financial Accountant    

 

 

EXECUTIVE Summary

Following an amendment to the Local Government Act 1993 during 2021, Councils may elect to make Councillor contributions to a nominated superannuation account from 1 July 2022. The making of superannuation payments for Councillors is optional and is at the discretion of Council.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.1 Collaborate - Provide representative, responsible and accountable community governance”.

Financial Implications

The exercise of this option for the payment of superannuation to Councillors will increase elected member expenses by approximately $38,669 in the 2022/2023 financial year, with an ongoing commitment each year thereafter, and has been included in the draft budget.

Policy and Governance Implications

Councillors will be required to provide Council with an eligible account for superannuation or retirement benefits from a scheme or fund to which the Commonwealth Superannuation Guarantee (Administration) Act applies.

 

Recommendation

That Council make superannuation payments to Councillors in accordance with the NSW Office of Local Government Circular 22-04.

 

 

further considerations

Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.

SUPPORTING INFORMATION

The NSW Office of Local Government issued Circular 22-04 on 15 March 2022, regarding the payment of Councillor superannuation.

 

To exercise the option of making superannuation contribution payments for Councillors, it must be resolved at an open meeting of Council as to whether Council makes superannuation payments for Councillors.


 

Should the Council resolve to make superannuation contribution payments for its Councillors, the amount of the payment is to be the amount that a council would have been required to contribute under the Commonwealth Superannuation Guarantee (Administration) Act 1992 as superannuation if the Councillors were employees of the Council.

As of 1 July 2022, the superannuation guarantee rate is 10.5 per cent. This will increase each year by 0.5 per cent until July 2025 when it reaches 12 per cent.

This superannuation contribution will be paid at the same intervals as the annual Councillor fee (monthly in arrears).

To receive a superannuation contribution payment, each Councillor will be required to nominate a superannuation account for the payment before 30 June 2022. The superannuation account nominated by each Councillor must be an account for superannuation of retirement benefits from a scheme or fund to which the Commonwealth Superannuation Guarantee (Administration) Act applies.

Should a Councillor fail to provide an eligible superannuation account prior to the end of the month that the payment is due, superannuation will not be paid in accordance with the guidelines contained in the NSW Office of Local Government circular.

Individual Councillors may opt out of receiving superannuation contribution payments or may opt to receive reduced payments.  Councillors must make this request in writing.

Superannuation payments will not be made for Councillors during any period in which they are suspended from their civic office or if their right to be paid any fee, other remuneration or expense, is suspended under the Act or during any period they are not entitled to receive their fee under Section 254A of the Local Government Act (1993) due to absence.

The amount of the superannuation expense will be calculated annually based on the determinations of the NSW Local Government Remuneration Tribunal when they release their annual determination, usually in April each year.

 

 


Council Meeting                                                                                               19 April 2022

 

 

5.5     Statement of Investments - March 2022

TRIM REFERENCE:        2022/501

AUTHOR:                       Julie Murray, Financial Accountant    

 

 

Executive Summary

The purpose of this report is to provide a statement of Council’s investments held as of 31 March 2022.

Link To Delivery/Operational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.2 Collaborate - Ensure financial stability and support efficient ongoing operation”.

Financial Implications

Nil

Policy and Governance Implications

Nil

 

 

Recommendation

That Council resolves:

1        To note the Statement of Investments as of 31 March 2022.

2        To adopt the certification of the Responsible Accounting Officer.

 

 

Further Considerations

Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.

Supporting Information

Section 212(1) of the Local Government (General) Regulation 2005 requires that a written report be presented each month at an Ordinary Meeting of the Council detailing all money that Council has invested under Section 625 of the Local Government Act 1993.

As of 31 March 2022, the investments held by Council in each fund is shown below:

 

 

31/03/2022

28/02/2022

General Fund

67,419,120.75

69,990,221.56

Water Fund

73,341,939.30

69,542,043.37

Sewer Fund

60,507,928.33

59,846,693.75

Total Funds

$201,268,988.38

$199,378,958.68

 

               

A reconciliation of Council’s investment portfolio provides a summary of the purposes for which Council’s investments are being held. The summary is as follows:

 

31/03/2022

28/02/2022

Externally Restricted

 

 

-     General Fund

31,296,011.77

31,127,290.20

-     Water Fund

73,341,939.30

69,542,043.37

-     Sewer Fund

60,507,928.33

59,846,693.75

Internally Restricted

27,975,765.51

27,975,765.51

Unrestricted

8,147,343.47

10,887,165.85

Total Funds

$201,268,988.38

$199,378,958.68

 

Externally restricted funds are those funds that have been received for a specific purpose and may only be used for the purpose that they have been received, for example, the money received for Water access and usage charges by legislation are only available to be spent for the operation, maintenance, and expansion of the Water supply network.

Internally restricted funds are those that Council has earmarked for a particular purpose, but Council can have that purpose changed.

Unrestricted funds are those available for use to continue the day-to-day operations of Council, made up of General Fund investments and cash only.

The unrestricted cash position movements during the month are normal as projects commence and income is received. Movements may also arise following processing of income received between funds or into restricted assets to appropriately allocate for the purposes Council has determined. Council’s cash flow is monitored daily, and some investments may be redeemed rather than rolled over to support operational requirements.

       

 

Portfolio Advice

Council utilises the services of an independent investment advisor in maintaining its portfolio of investments. Council’s current investment advisor is Imperium Markets, an independent asset consultant that works with wholesale investors to develop, implement and manage their investment portfolio. Imperium Markets is a leading provider of independent investment consulting services to a broad range of institutional investors including government agencies, superannuation funds and not-for-profit organisations.

Imperium Markets major services provided to Council include:

·      Quarterly portfolio summary reports

·      Advice on investment opportunities, in particular Floating Rate Note products

·      Advice on policy construction

·      Year-end market values for Floating Note Rate products held by Council.

 

Portfolio Performance

Council’s current Long Term Financial Plan establishes the benchmark for Council’s interest on investments at “75 basis points above the current cash rate”. The cash rate as of 31 March 2022 remained at 0.10 per cent. The weighted average interest rate of Council’s investment portfolio at the same reporting date was 1.16 per cent which continues to exceed Council’s benchmark i.e., the cash rate of 0.10 per cent plus 0.75 per cent (or 85 basis points).

Council has also utilised the AusBond Bank Bill Index to provide a further benchmark focused on long term investments. As of 31 March 2022, the AusBond rate was 0.90 per cent. The weighted average interest rate of Council’s investment portfolio at the same reporting date was 1.16 per cent.

Council’s Investment Policy establishes limits in relation to the maturity terms of Council’s investments as well as the credit ratings of the institutions with whom Council can invest.

The following tables provide a dissection of Council’s investment portfolio as required by the Policy. The Policy identifies the maximum amount that can be held in a variety of investment products or with institutions based on their respective credit ratings.

Table 1 shows the percentage held by Council (holdings) and the additional amount that Council could hold (capacity) for each term to maturity allocation in accordance with limits established by Council’s Policy.

Table 1: Maturity – Term Limits

Term to Maturity Allocation

Maximum

Holding

Remaining Capacity

0 - 3 Months

100.00%

16.42%

83.58%

3 - 12 Months

100.00%

27.78%

72.22%

1 - 2 Years

70.00%

14.01%

55.99%

2 - 5 Years

50.00%

41.79%

8.21%

>5 Years

25.00%

0.00%

25.00%

 

Table 2 shows the total amount held, and the weighted average interest rate (or return on investment), by credit rating. The credit rating is an independent opinion of the capability and willingness of a financial institution to repay its debts, or in other words, the providers’ financial strength or creditworthiness. The rating is typically calculated as the likelihood of a failure occurring over a given period, with the higher rating (AAA) being superior due to having a lower chance of default. However, it is generally accepted that this lower risk will be accompanied by a lower return on investment.

The level of money held in the bank accounts has been added to the table to illustrate the ability of Council to cover the operational liabilities that typically occur (for example payroll, materials and contracts, utilities).

 

Table 2: Credit Rating Limits

Credit Rating

Maximum

Holding

Remaining Capacity

Value

Return on Investment

Bank Accounts

100.00%

9.42%

90.58%

$18,951,270.48

0.10%

AAA

100.00%

0.00%

100.00%

N/A

N/A

AA

100.00%

  57.85%

42.15%

$116,437,732.00

1.23%

A

60.00%

  12.33%

47.67%

$24,825,303.56

1.03%

BBB & NR

40.00%

20.40%

19.60%

$41,054,682.34

1.02%

Below BBB

0.00%

0.00%

0.00%

N/A

N/A

Certification by Responsible Accounting Officer

I, Jason Cooke, hereby certify that all investments 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.

 

 


Council Meeting                                                                                               19 April 2022

5.6     Additional Special Variation for the 2022/2023 Financial Year

RECORD NUMBER:       2022/508

AUTHOR:                       Jason Cooke, Chief Financial Officer    

 

 

EXECUTIVE Summary

The Independent Pricing and Regulatory Tribunal NSW (IPART) in late 2021 announced the rate peg for the 2022/23 financial year would be 0.7 per cent plus a population adjustment factor for Orange City Council of zero.

 

In March 2022, IPART announced it will accept and process applications from Councils for and Additional Special Variation (ASV) up to the lower of 2.5 per cent or the assumed rate peg for 2022/23 exhibited in our 2021/22 Long Term Financial Plan (LTFP). In Orange City Council’s case, 2.5 per cent was used in the 2021/22 LTFP and therefore it is proposed that an ASV application be submitted to IPART by the due date of 29 April 2022 to effectively increase the rate peg from 0.7 per cent to 2.5 per cent via the ASV mechanism. 

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.2 Collaborate - Ensure financial stability and support efficient ongoing operation”.

Financial Implications

If Council does not apply or is unsuccessful in its application, there would be a reduction to the draft rates budget of approximately $620,000 in 2022/23 that will not be recouped into the future, with a calculated compound loss of income of over $7 million for the 10 year life of the LTFP.

Policy and Governance Implications

Nil

 

Recommendation

That Council apply for a permanent Additional Special Variation of 2.5 per cent for 2022/23 under Section 508(2) of the Local Government Act 1993 to ensure Council’s ongoing financial sustainability.

 

further considerations

Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.

SUPPORTING INFORMATION

In late 2021, IPART announced the rate peg for the 2022/23 financial year was set between 0.7 per cent and 5.0 per cent inclusive of a population growth factor. Orange City Council received a 0.7 per cent rate peg at the bottom of this range.

The Office of Local Government and IPART recognise that, due to the delayed Council elections and the determination of the 2022/23 rate peg at a much lower rate than Councils had forecast for 2022/23 in their 2021/22 LTFPs, councils may not have had sufficient time to prepare special rate variation applications within the normal timeframe. This may mean Councils will not have sufficient funds to pay for required infrastructure and services. As such the NSW Government and IPART have agreed to a one-off ASV round for the 2022/23 financial year only.

For ASV applications made under the IPART Guidelines, Councils will need to provide IPART with the following information:

·    Council’s 2021-22 IP&R documentation identifying that council budgeted for an income increase above the percentage specified for the council for 2022-23 under section 506 of the Act; and

·    Where Councils are applying for a permanent special variation, in addition to the above information, the council’s 2021-22 IP&R documentation identifying that the Council forecast an average Operating Performance Ratio (OPR) of 2 per cent or lower over the next 5 years or, alternatively, evidence of need, for example, but not limited to, that the council needs to maintain a higher OPR so it can meet its capital funding requirements; and

·    Council has resolved to apply for the special variation under section 508(2) of the Act and that the resolution clearly states:

o whether the resolution is for a temporary or permanent special variation under section 508(2) of the Act; and

o the additional income that Council will receive if the special variation is approved; and

o why the special variation is required; and

o that the Council has considered the impact on ratepayers and the community in 2022-23 and, if permanent, in future years if the special variation is approved and considers that it is reasonable.

The ASV application process is a simpler more targeted application process than the normal special rate variation process. IPART will not require Councils to demonstrate community consultation or criteria outside of the processes outlined above. To demonstrate community consultation, IPART will consider the consultation undertaken through the IP&R process and consider the resolution to apply for an ASV meets the requirements outlined above.

 

Under this ASV round of applications:

·    IPART will accept applications until 29 April 2022;

·    IPART will publish applications to enable community consultation for a period of at least three weeks; and

·    IPART will notify councils of its decision no later than 21 June 2022.

 

The modelling required by IPART to be submitted with Council’s application demonstrates that with the permanent ASV, the OPR is maintained at or around the benchmark level of 2 in each of the next ten years, however without any ASV the OPR drops significantly below the benchmark to at or around zero in each of the next ten years.

 

Therefore, to ensure future financial sustainability and continuity of services to the community at current levels of service, it is recommended that Council apply for a permanent ASV of 2.5 per cent (including population growth) for 2022/23, which was the expected rate peg for 2022/23 used in the 2021/22 LTFP and the same assumption used in the 2022/23 draft budget. 

 

 

 

 


Council Meeting                                                                                               19 April 2022

5.7     Fees and Charges - Carl Sharpe Cricket Centre

RECORD NUMBER:       2022/520

AUTHOR:                       Scott Maunder, Director Community, Recreation and Cultural Services     

 

 

EXECUTIVE SUMMARY

At its meeting of 07 September 2021, by Resolution 21/308, Council resolved to exhibit a daily hire rate for the use of the Carl Sharpe Cricket Centre. Due to an administrative error, these fees did not come off exhibition until 15 November 2021 and this was during caretaker period.

LINK TO DELIVERY/OPERATIONAL PLAN

The recommendation in this report relates to the Delivery/Operational Plan strategy “17.1 Collaborate - Provide representative, responsible and accountable community governance”.

FINANCIAL IMPLICATIONS

Nil

POLICY AND GOVERNANCE IMPLICATIONS

Nil

 

 

Recommendation

That Council resolves to approve the amended fees and charges for the Carl Sharpe Cricket Centre.

 

FURTHER CONSIDERATIONS

Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.

SUPPORTING INFORMATION

At its meeting of 7 September 2021 Council resolved to place on exhibition amended fees for the Carl Sharpe Cricket Centre.

The proposed fees were:

Carl Sharpe Cricket Centre

GST Ex

GST

Total

Non-Commercial Operator (approved events only). Hourly rate charged per above to a maximum of $250 per day, regardless of lane hire. Any day of week.

$227.27

22.73

$250.00

Orange District Cricket Association & Orange Junior Cricket Association, Annual Cricket Centre Levy

$18.18

$1.82

$20.00

 

The background to setting the fee for annual levy was:

·    At time the Carl Sharpe Cricket Centre was due to be opened Council agreed with the Orange District Cricket Association and Orange Junior Cricket Association that a levy of $20 per registered player would be imposed.

·    This levy entitled any registered player of either Association unlimited use of the indoor cricket centre. It was designed to maximise usage, minimise administration costs but to also offset the cost of cleaning and utilities which is approximately $22k per annum

·    Council fees and charges stipulate the current hire fee of $20 per hour per lane if hired between 6am and 3pm, and $25 per hour if hired between 3pm and 12am.

·    For a normal 24-week season, it costs over $180K in wages to prepare and maintain our turf and synthetic cricket grounds.  Additional costs for the summer season include:

o $120K in consumables such as chemicals (herbicide, fungicide, etc.), fertiliser, line marking paint and irrigation repairs

o $100K machinery

o $50K water usage (does not include water availability charges)

o $25K toilet cleaning (not including cricket centre)

Conservative total for the summer sporting season - $475K

·    Council’s only other charge for cricket is the seasonal registration fee that covers access to all Council cricket grounds and outdoor training facilities. Over the last 20 years, this fee has only ever increased by CPI and is currently at:

o $6.90/junior player

o $23/senior player

Total: $8,043 per annum

·    Compared to other Council’s across NSW our per player registration fee offers exceptional value. ODCA and ODJCA paid Council a combined total of $8,043 for the use of our grounds. Compare this to fees charged by a few neighbouring Councils:

o Dubbo Senior Cricket     $48,800

o Dubbo Junior Cricket        $6,636

o Bathurst Cricket              $19,600

o Cowra Cricket                    $8,400

o Wellington Cricket            $7,909

 


 

Feedback from Public Exhibition Period

·    A concern has been received from Centrals Cricket Club who have requested a reduction to $10 per player. It should be noted that they have accessed the Cricket Centre over the past season under the $20/ player levy with bookings as follows:

o Weekly – Fridays - 2 lanes from 5.00pm to 6.30pm

o Fortnightly – Tuesdays – 4 lanes from 4.00pm to 5.30pm & 2 lanes from 5.30pm to 6.30pm

o Individual Club members also regularly utilised the Centre outside these hours

·    A concern has been received from ODJCA who have requested a reduction to $10 per player. The use of the centre by Junior cricketers under the $20/ player levy has been significant

 

 

 


Council Meeting                                                                                               19 April 2022

5.8     Impact Of Benchmarking Domestic Waste Management Charges And Draft Submission to IPART on Benchmarking and Rate Capping Councils

RECORD NUMBER:       2022/345

AUTHOR:                       Wayne Davis, Manager Waste Services and Technical Support    

 

 

EXECUTIVE Summary

At the Council meeting of 3 March 2022, the report advising on IPART Review of Domestic Waste Management Charges was considered.

Council resolved to make a submission to IPART responding to the draft recommendations report objecting to benchmarking domestic waste management charges however, the provision of clear and unambiguous pricing principles are supported and should be included within the NSW Office of Local Government Council Rating and Revenue Raising Manual as this will provide sufficient guidance to all Councils when setting Domestic Waste Management charges to arrive at costs that provide services that result in best value for ratepayers.

Cr Mallard requested that a report be brought back to Council with a draft submission for consideration prior to official submission to IPART.

Cr Peterson requested that information is provided to Councillors on how Orange City Council compares to similar regional Councils in terms of costs and waste management charges. A question was raised as to whether Orange City Council’s costs are over the proposed 1.1% waste peg and if they are, what services could be changed if we decided not to go over this rate pegging figure?

Cr Duffy requested that a report be brought back to Council detailing the impact that this benchmarking of domestic waste management charges will have on Orange City Council.

This report summarises all of the requested information and provides Council with the draft submission intended to be made to IPART for final endorsement.

Link To Delivery/OPerational Plan

The recommendations in this report relates to the Delivery/Operational Plan strategy “17.2 Collaborate - Ensure financial stability and support efficient ongoing operation”.

Financial Implications

Limiting Council to a benchmarked waste cap rate in setting its Domestic Waste Management charges could have serious impact on ability to maintain current levels of service.

Within the Waste Services financial model (Council’s financial management system that inputs all operational and capital income and expenditure and assists in establishing fees and charges for current and future years to cover all operational costs), Council allows for a 2.5% increment to income and expenditure over the life of the model (2054/2055). This is the effective life-span of Council’s landfill capacity.

Under this base case scenario, Council has sufficient operational and capital allowance for undertaking all of its current levels of service, contract and licence obligations, capital investment for future landfill cells and capping and rehabilitation requirements and a reserve balance to fund future landfill establishment.

This model provides a robust means of justifying current and future expenditure and ensuring future generations are not burdened with significant expenditure arising from dwindling landfill resources and associated ongoing maintenance.

Under the IPART proposal of a 1.1% cap of domestic waste management charges applied to our income (whilst leaving 2.5% increments to Council’s expenditure) the nett impact on Council’s reserve balance at the end of the modelling period (2054/2055) is $39,987,259. Council’s reserve balance falls into a negative position from 2031/2032 financial year and continues to decline rapidly thereafter to a point of being $13,678,214 in the red. Council will therefore need to obtain further funds through commercial loans or reduce current levels of service significantly either of which have a direct impact on our constituents.

Policy and Governance Implications

Potential additional regulation of how Council sets its domestic waste management charges will incur further need to respond to IPART to justify Council’s service level needs which are not directly comparable with other Local Government managed waste operations. This will result in additional workload on Council resources, potential delays in adopting financial strategies to maintain planned services and infrastructure development whilst duplicating existing advertising requirements that facilitate community input into proposed fees and charges prior to adoption.

 

 

Recommendation

That Council resolves to:

1       Note the report summary responding to Councillor enquiries about the impact of Benchmarking and capping Domestic Waste Management Charges; and

2       Endorse the draft submission to IPART, responding to the draft recommendations report objecting to benchmarking and capping domestic waste management charges however, the provision of clear and unambiguous pricing principles are supported and should be included within the NSW Office of Local Government Council Rating and Revenue Raising Manual as this will provide sufficient guidance to all Councils when setting Domestic Waste Management charges to arrive at costs that provide services that result in best value for ratepayers.

 

 

further considerations

Consideration has been given to the recommendation’s impact on Council’s service delivery; image and reputation; political; environmental; health and safety; employees; stakeholders and project management; and no further implications or risks have been identified.


 

SUPPORTING INFORMATION

The following table provides a comparison of base services and associated charges between Councils within the Central West Waste, Recycling and Organics contracts and other regional Councils with similar servicing and population significance. As one can see, it is not all common place to have same sized bins and frequency of service and some Councils do provide Bulky Waste Services in varying forms whilst others don’t and the unknown element that is not readily identifiable, is how each of the Councils has accounted for their landfill capacity and costs and other associated environmental monitoring and licencing requirements. Other factors such as managing of transfer stations for outlying villages and unique waste related services that suit their constituency all have a bearing on the final waste charges levied against the resident. These factors are the primary concern of Local Councils against trying to impose a one size fits all benchmarking and capping of domestic waste charges.

 

 

2021/22 Residential Kerbside Waste Charges (GST Inclusive) - Regional NSW Comparison

Council

Residential Garbage Charge

Residential Recycling Charge

Residential Organics

 Total Waste Service Cost

 Other

Orange

240L Weekly

240L Fortnightly

240L Weekly

 

Annual Bulky Waste

$256.45

$100.25

$97.60

$454.30

$ 11.60

Bathurst

240L Weekly

240L Fortnightly

240L Weekly

 

 

$231.00

$   100.00

$116.00

$447.00

 

Dubbo

140L Weekly

240L Fortnightly

240L Weekly

 

Upgrade to 240L waste

 

 

 

$411.00

$85.50

Armidale

140L Weekly

2x 55L Crates Weekly

240L Weekly

 

Extra recycling crates can be purchased

 

 

 

$425.00

$37.00

Tamworth

240L Weekly

240L Fortnightly

240L Weekly
(Garden only)

 

 

 

 

$354.00

 

Wagga

140L Weekly

240L Fortnightly

240L Weekly

 

Upgrade to 240L waste

 

 

 

$369.00

$60.00

Albury

140L Fortnightly

240L Fortnightly

240L Weekly

$250.00

This is the default base service arrangement. Other options for varying bin size and service frequency available at increased costs.

Blayney

240L Weekly

240L Fortnightly

NIL

 

Annual Bulky Waste Collection

 

 

 

$376.00

 

Cabonne

240L Weekly

240L Fortnightly

 

Annual Bulky Waste Collection

 

 

 

 $405.40

 

Council

Residential Garbage Charge

Residential Recycling Charge

Residential Organics

 Total Waste Service Cost

 Other

Forbes

240L Fortnightly

240L Fortnightly

240L Weekly

 

Annual Bulky Waste Collection

 

 

 

$547.00

 

Parkes

240L Fortnightly

240L Fortnightly

240L Weekly

 

Annual Bulky Waste Collection

 

 

 

$431.00

 


In relation to Cr Peterson’s question of whether Orange City Council’s costs are over the intended rate pegging figure (for 2022/2023, proposed peg amount is 1.1%), the answer is yes, Council
inflates its charges to keep pace with CPI, rise and fall increases associated with contractor running costs and to allow for operational and capital expenditure associated with managing two licenced waste and composting facilities eg. Landfill cell development, capping and rehabilitation, plant replacement. Council manages its operations with a financial model that currently allows for a 2.5% increase in costs and charges to cover the management of its facilities and contracts. If Council was forced to adhere to a rate peg amount of 1.1%, then all aspects of our operations would need to be reconsidered which is difficult when Council is obliged to comply with operational project approval conditions as stipulated by the Environment Protection Authority and Department of Planning. Council also has long and short to medium term operational contracts with service providers that provide our main operational services such as weekly waste and food and garden organics collection and processing services, fortnightly recycling collection and processing services, Recovery Shop operations, Community Recycling Centre operations, NetWaste regional contracts such as tyre, oil, mattress, scrap steel, Household Hazardous Waste collection, e-waste recycling, and other community services such as diabetic sharps container collection, Expanded Polystyrene Recycling and the residential Bulky Waste collection service.

Without adequate provision for growth and ongoing increased costs in managing these services, then reducing our levels of service in some if not all of these services will be an end outcome and, in all likelihood, Council will not have sufficient reserve funds to self-fund these operations and will need to source commercial loans at commercial interest rates to continue its base service provision. Council also needs to be mindful that it has a responsibility to build an adequate reserve for future landfill needs that will provide security for its constituents at the most affordable levels and if it were to not build such a reserve then future generations will be forced to meet all of the subsequent cost in establishing new facilities at the current commercial financial rates.

Within the IPART 2020 Discussion Paper on the proposed Domestic Waste Management Charge Review, it stated the proposal of benchmarking waste related costs across Councils; Office of Local Government publishing pricing principles in their Council Rating and Revenue Raising Manual; Councils to rebalance domestic waste management income and expenses with general rates in line with the pricing principles with the aim of shifting overheads not consistent with the pricing principles to general rates; and Councils complete annual reporting.


Under this approach, Councils would have a 2 year grace period to rebalance the domestic waste management charge with general rates based on clear pricing principles. The general rate peg of 0.7% would be applied to the new level of general rates after rebalancing. IPART would regulate those Councils by exception that exceed the average domestic waste management charge after rebalancing by about 15%.

The concerns with this proposed approach include:

-     Some Council waste costs may vary significantly from benchmarked costs due to service level, density, demographics, and timing of service introductions compared to other Councils, etc.

-     The costs of managing illegal dumping would be accounted for as an unbooked clean-up and combined with clean-up costs. Most Councils do not know the cost of illegal dumping on its own as wastes collected are often combined with other non-illegally dumped materials, it is managed ad hoc and education costs associated with illegal dumping are often combined with other education subject matter.

-     Only those education costs related to waste and recycling can be included in domestic waste management charges, which means the portion of costs of an educator’s time dedicated to non-waste issues such as environment and sustainability, and education campaigns not directly related to delivering waste services, could not be included in the domestic waste management charge.

In December 2021 IPART released its domestic waste management charge review draft report which instead proposed:

-     Publishing annually a benchmark domestic waste management charge peg (1.1% for 2022-23) that gives guidance on how much the reasonable costs of providing domestic waste management services have changed over the previous year.

-     The domestic waste management charge peg to be calculated based on a Waste Cost Index (WCI) taking into account a list of 26 items taken from domestic waste management expenditures in 2017-18 and 2018-19, IPART’s Local Government Cost Index (LGCI) which determines the weight of each expenditure item to the total value of the list, and ABS price indexes to measure changes in wage costs, producer and consumer indexes.

-     Publishing an annual report on Councils that have increased their domestic waste management charges beyond the annual peg, and those Councils’ justification for doing so.

-     OLG to publish pricing principles in their Council Rating and Revenue Raising Manual on how to set domestic waste management charges to ensure they reflect the costs of providing the service and best value for ratepayers.


 

Under these draft recommendations, Councils can voluntarily increase their domestic waste management charges beyond the 1.1% peg but must provide an explanation. These Councils and their explanations would be published in a public IPART report the next year. Councils could also apply for a special rate variation to increase the domestic waste management charge. This approach would not allow a rebalancing between domestic waste management charges and general rates, even if Councils become aware of cost allocations that are not compliant with the updated pricing principles, without requiring a special rate variation.

The proposed peg approach has the following implications:

-     Incentivises Councils to do as little as possible and to prioritise cost over innovation and delivering best-practice services.

-     Poses a significant barrier to delivery of Council targets and the NSW Waste and Sustainable Materials Strategy (WaSM) targets.

-     Increases risk to the successful roll-out of new services and without a sufficient waste reserve, it is inevitable that Councils will have to raise their domestic waste management charges well above 1.1%.

-     The peg does not allow for the combination of CPI, the recent sudden rise in fuel prices, sudden changes in inflation, the recent increase in the Local Government Award, or planned increases in the domestic waste management charge already included in many Council budgets.

-     Being named by IPART in an annual report for inevitably raising the domestic waste management charge above the peg or applying for a time-consuming special rate variation to avoid this-risks a community and media backlash. This may undercut establishing social licence for a new service, increase planning time, and create delays in service introduction.

-     Many Councils have consulted their communities as part of their strategic planning and identified a strong community expectation for higher resource recovery and, in many cases, a willingness to pay for additional services.

-     As more Councils inevitably exceed the voluntary peg, pressure will build on IPART to make the voluntary peg mandatory.

The general consensus from Councils surveyed by South Sydney ROC is that the preference for the rebalancing of income and expenditure associated with domestic waste management charges and general rates with clear pricing principles is preferred over a rate pegging exercise. Rebalancing may more effectively allow Councils some flexibility in adjusting the domestic waste management charge to accommodate delivery of high quality services and meet NSW Government mandates and community expectations.


 

SUMMARY

Benchmarking and setting a cap on Domestic Waste Management charges will have a significant impact on capacity to maintain current levels of service and introduce new service opportunities for our community. A 1.1% rate cap on domestic waste management charges significantly impacts Council’s capacity to build sufficient reserves to plan and build necessary capital infrastructure associated with our waste management services. A subsequent lack of reserve funds will require additional loans to be sourced at current market rates which have diligently been minimised until now and it makes a significant additional impact to Council resources in having to justify any variance above the proposed rate cap figure that has already been disclosed through open tendering and advertising of proposed fees and charges as required under the Local Government Regulations.

The draft submission to IPART responding to the draft recommendations report on benchmarking and rate capping of domestic waste management charges is attached for Councils review and endorsement. Submissions close on 29 April 2022 and a public hearing will be convened by IPART on 7 June 2022 after it has considered all submissions.

 

Attachments

1          Submission to IPART - Review of Domestic Waste Management Charges, D22/19145

 

 


Council Meeting                                                                                                                        19 April 2022

Attachment 1      Submission to IPART - Review of Domestic Waste Management Charges


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Council Meeting                                                                                               19 April 2022

6     Closed Meeting - See Closed Agenda

The Chief Executive Officer will advise the Council if any written submissions have been received relating to any item advertised for consideration by a closed meeting of Orange City Council.

The Mayor will extend an invitation to any member of the public present at the meeting to make a representation to Council as to whether the meeting should be closed for a particular item. In accordance with the Local Government Act 1993, and the Local Government (General) Regulation 2005, in the opinion of the General Manager, the following business is of a kind as referred to in Section 10A(2) of the Act, and should be dealt with in a Confidential Session of the Council meeting closed to the press and public.

Recommendation

That Council adjourn into a Closed Meeting and members of the press and public be excluded from the Closed Meeting, and access to the correspondence and reports relating to the items considered during the course of the Closed Meeting be withheld unless declassified by separate resolution. This action is taken in accordance with Section 10A(2) of the Local Government Act, 1993 as the items listed come within the following provisions:

6.1     Northern Distributor Road Naming to Glenn Taylor Way

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to (a) personnel matters concerning particular individuals (other than councillors).

6.2     Resubmission - Construction of the Southern Distributor Road Stage 4 and Shiralee Collector Road Stage 5

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to (c) information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

 

 


Council Meeting                                                                                               19 April 2022

6.1     Northern Distributor Road Naming to Glenn Taylor Way

RECORD NUMBER:       2022/465

AUTHOR:                       Jason Theakstone, Manager Engineering Services    

Reason for Confidentiality

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to (a) personnel matters concerning particular individuals (other than councillors).

 

 


Council Meeting                                                                                               19 April 2022

6.2     Resubmission - Construction of the Southern Distributor Road Stage 4 and Shiralee Collector Road Stage 5

RECORD NUMBER:       2022/478

AUTHOR:                       John Boyd, Operations Manager    

Reason for Confidentiality

This item is classified CONFIDENTIAL under the provisions of Section 10A(2) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to (c) information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

 

 


Council Meeting                                                                                               19 April 2022

7       Resolutions from closed meeting