Agenda of Finance Policy Committee

Finance Policy Committee 3 February 2015

2.1 Statement of Bank Balances as at 20 January 2015

TRIM REFERENCE: 2015/167

AUTHOR: Geoffrey Hamilton, Cost Clerk

EXECUTIVE Summary

Council operates one Bank Account and is required to carry out a Bank Reconciliation at the end of each month. As at 20 January 2015 the Cash Book Balance was $75,105.87

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “1.2 Our City - Information and advice provided for the decision-making process will be succinct, reasoned, accurate, timely and balanced”.

Financial Implications

Nil

Policy and Governance Implications

Nil

Recommendation

That the information provided in the report by the Cost Clerk on Statement of Bank Balances as at 20 January 2015 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

STATEMENT OF GENERAL FUND BANK BALANCES AS AT 20 JANUARY 2015
		Ticketek
	General	Suspense

Opening Cash Book Balance 18/11/14 Debit/(Credit)	217,725.21	5,054.10

Add Deposits	28,110,183.70	63,440.05

Less Payments	-25,984,403.04	-67,767.17

Add/(Less) Money Market at Call Account Movement	-2,268,400.00

Closing Cash Book Balance 20/1/15 Debit/(Credit)	75,105.87	726.98

Balance as per Bank Statement	253,403.40	726.98

Add Outstanding Deposits	-49,898.59

Less Outstanding Cheques	-128,398.94

Add/(Less) Bank Adjustments

Balance as per Closing Cash Book Balance above Debit/(O'drawn)	75,105.87	726.98


Legal Overdraft limit all Funds = $20,673,000
Overdraft arranged at bank all funds $ 3,700,000

Finance Policy Committee 3 February 2015

2.2 Combined Rates and Charges Interim Reconciliation as at 15 January 2015

TRIM REFERENCE: 2015/152

AUTHOR: John Kennedy, Senior Revenue Officer - Rates

EXECUTIVE Summary

The following tables and graphs provide details of Rates, Water, Sewer and Garbage Charges raised and collected up to the 2^nd quarter of the 2014/15 rating year.

Link To Delivery/OPerational Plan

Financial Implications

Nil

Policy and Governance Implications

Nil

Recommendation

That the information provided in the report on Combined Rates and Charges Interim Reconciliation as at 15 January 2015 be acknowledged.

further considerations

SUPPORTING INFORMATION

The following report gives details of the combined rates and charges reconciliation as at 15 January 2015. As at 15 January 2015 $2,802,363.97 or 8.77% remains outstanding. As at 21 January 2014, 8.71% of the amount payable remained outstanding.

Debt Collection – Rates

Debt recovery for overdue rates for the 2014/15 year remains satisfactory with a total of 708 accounts with a value of $1,104,194.14 being referred to Council’s collection agents to be issued with 7 day letters of demand for rates arrears balances with two or more instalments outstanding. Of those accounts, 366 with a debt value of $646,874.08 were issued with 7 Day Letters of Demand on 12 January 2015.

Reminder letters for the overdue second instalment were also sent to ratepayers on 15 December 2014.

As at 15 January 2015, 296 accounts with payments totalling $376,126.51 have been finalised after being issued with 7 day letters in 2014/15. A total of 347 accounts with a debt value of $616,553.23 have current 7 Day Letters of Demand, 56 accounts have been placed on hold and/or payment arrangements negotiated for arrears balances. The remaining 9 accounts have progressed to the next stages of the debt recovery process and have been issued with Statements of Claim for unpaid rates.

General Rates	Ordinary Rates YTD 2nd Quarter
	2013/2014	2014/2015
	$	$
Balance Outstanding	725,074.45	772,497.88


Sewer Charges	Sewer Charges YTD 2nd Quarter
	2013/2014	2014/2015
	$	$
Balance Outstanding	435,364.25	527,986.51


Water Charges	Water Charges YTD 2nd Quarter
	2013/2014	2014/2015
	$	$
Balance Outstanding	1,110,170.01	1,392,002.00


Garbage and Recycling Charges	Garbage Charges YTD 2nd Quarter
	2013/2014	2014/2015
	$	$
Balance Outstanding	321,181.94	109,877.58

Finance Policy Committee 3 February 2015

2.3 Strategic Policy Review

TRIM REFERENCE: 2015/1

AUTHOR: Michelle Catlin, Manager Administration and Governance

EXECUTIVE Summary

This report continues the review of Council’s Strategic Policy Register. A number of policies have recently been on exhibition and are recommended for adoption.

Link To Delivery/OPerational Plan

Financial Implications

Nil

Policy and Governance Implications

Council’s Strategic Policies are being reviewed and amended to ensure ongoing compliance with legislation and industry best practice. Policies of Council are of two types – Strategic Policies are determined by Council, and relate to Councillors and the broader community. These policies require public exhibition (if new or include significant changes) and adoption by Council. Operational Policies are determined and implemented by the General Manager, and relate to staff and the operations of the organisation.

Recommendation

That Council adopt the following Strategic Policies:

- ST059 – Public Interest Disclosures and Internal Reporting

- ST032 – Gallery – Collection

- ST036 – Gallery – Exhibitions

- ST037 – Gallery – Public Art

- ST038 – Gallery – Usage for Commercial Project Ventures

- ST016 – Complaint Management

- ST088 – Fraud and Corruption Prevention

further considerations

SUPPORTING INFORMATION

At its meetings held in December 2014, Council resolved to exhibit the following policies:

- ST059 – Public Interest Disclosures and Internal Reporting

- ST032 – Gallery – Collection

- ST036 – Gallery – Exhibitions

- ST037 – Gallery – Public Art

- ST038 – Gallery – Usage for Commercial Project Ventures

- ST016 – Complaint Management

- ST088 – Fraud and Corruption Prevention

The exhibition period has closed, with no submissions received. The policies are therefore presented for adoption.

Attachments

1 FOR ADOPTION - Strategic Policy - ST059 - Public Interest Disclosures and Internal Reporting, D14/24149 ⇩

2 FOR ADOPTION - Strategic Policy - ST032 - Gallery - Collection, D14/27497 ⇩

3 FOR ADOPTION - Strategic Policy - ST036 - Orange Regional Gallery - Exhibitions, D14/27498 ⇩

4 FOR ADOPTION - Strategic Policy - ST037 - Gallery - Public Art, D14/27499 ⇩

5 FOR ADOPTION - Strategic Policy - ST038 - Gallery - Usage for Commercial Project Ventures, D14/27500 ⇩

6 FOR ADOPTION - Strategic Policy - ST016 - Complaint Management and Procedure, D14/27501 ⇩

7 FOR ADOPTION - Strategic Policy - ST088 - Fraud and Corruption Prevention Policy and Plan, D14/28919 ⇩

Finance Policy Committee 3 February 2015

2.3 Strategic Policy Review

Attachment 1 FOR ADOPTION - Strategic Policy - ST059 - Public Interest Disclosures and Internal Reporting

Finance Policy Committee 3 February 2015

2.4 Request For Financial Assistance

TRIM REFERENCE: 2015/169

AUTHOR: Josie Sanders, Management Accountant

EXECUTIVE Summary

Council is in receipt of a number of requests for financial assistance under section 356 of the Local Government Act 1993. This report recommends the approval of financial assistance to the amount of $300 from the Sports and Participants Program, and declines all other requests as both budgets relating to General Donations and Major Promotions are fully expended.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “3.3 Our City – Recognise that members of the community will take different leadership pathways, the Council will support this growth and development through appropriate activities, initiatives and assistance”.

Financial Implications

If Council resolve as per recommendations of this report, the following balances remain from the 2014/15 Budget.

· General Donations: Nil

· Major Promotions: Nil

· Sports Participant Program: $12,118.18

· Sports Facility program: Nil

Policy and Governance Implications

Nil

Recommendation

1 That Council decline the requests for financial assistance from Light Up the Night, 1/19 Royal NSW Regiment, Electrolux and Womensport and Recreation NSW Inc, as the General Donations budget has been fully expended.

2 That Council decline the requests for financial assistance from Orange City Bowling Club, and Orange Cycle and Triathlon Club, as the Major Promotions budget has been fully expended.

3 That Council approve the requests from Thomas Zeylemaker, Lily Westcott, and Eva Reith-Snare, from the Sports Participant Program.

further considerations

Comment from the Director Corporate and Commercial Services

Council will note from the information above that all donations budget areas except the Sports Participant program budget are fully expended. Consequently, the requests for donations received this quarter, except for those in the Sports Participant Program area, are recommended to be declined as no funds are available and staff can not recommend funding outside policy or budget.

Council is reminded of the deficit operating position adopted in the September 2014 quarterly review for the General Fund amounting to a deficit of $141,219.

Assigning any additional donations monies from these requests would worsen this deficit position.

An option is that, should Council wish to allocate any funding for these requested donations, a further report be brought back identifying specific programs to be taken out of the current Delivery/Operational plan to free up the necessary funding.

Attachments

1 Request for Donations Table, D15/1455 ⇩

2 Light Up The Night Ute Muster, IC14/15033 ⇩

3 Light Up the Night - Additional information, ic15/510 ⇩

4 1/19 Royal NSW Regiment, ic14/15827 ⇩

5 Electrolux, IC14/17580 ⇩

6 Womensport & Recreation NSW Inc., IC15/677 ⇩

7 Orange City Bowling, IC14/15983 ⇩

8 Orange Cycle & Triathlon Club, IC15/676 ⇩

9 Thomas Zylemaker, IC14/15879 ⇩

10 Lily Westcott, IC14/16930 ⇩

11 Eva Reith-Snare, IC14/16938 ⇩

Finance Policy Committee 3 February 2015

2.4 Request For Financial Assistance

Attachment 1 Request for Donations Table

	Applicant	Amount Sought	Policy Position	Purpose	Comment	Recommendation	To be advertised
A.1	Light Up the Night Central West Ute Show and Muster	$500	General Requests – Miscellaneous. Up to a maximum of $500	Hire costs of venue to Orange Harness race Club	Budget fully expended.	Nil	No
A.2	1/19 Royal NSW Regiment	$2,552	General Requests – Reduction in Council Venue Hire Fees – 50 % up to $500	Use of aquatic centre for training purposes. $5.80 x 20 x22 weeks $2,552.	Budget fully expended.	Nil	No
A.3	Electrolux	$30,000	General Requests – Miscellaneous. Up to a maximum of $500	Electrolux Factory Commemorative Book	Budget fully expended.	Nil	No
A.4	Womensport & Recreation NSW Inc.	$5,000	General Requests – Miscellaneous. Up to a maximum of $500	Promotion of Women and girls in sport –School Girls Get Active Gala Day 25 March 2015	Budget fully expended.	Nil	No

No	Applicant	Amount Sought	Policy Position	Purpose	Comment	Recommendation	To be advertised
B.1	Orange City Bowling Club	$1,500	Event/Major promotions sponsorship maximum of $5,000	Golden Eagle Tournament (47^th Year) –promotes the game of bowls in the Central West	Budget fully expended.	Nil	No
B.2	Orange Cycle & Triathlon Club	$1,000	Event/Major promotions sponsorship maximum of $5,000	Advertise, assist in prize money, medals, and provide first aid services relating to the Western Region Track Championships 7^th March 2015.	Budget fully expended.	Nil	No

No	Applicant	Amount Sought	Policy Position	Purpose	Comment	Recommendation	To be advertised
C.1	Thomas Zeylemaker	$100	Sports and Participant Program. Regional representation.	Assist with costs associated with trip to Canberra.	Policy has been applied	$100	No
C.2	Lily Westcott	$100	Sports and Participant Program. Regional representation.	Assist with costs associated with trip to Adelaide.	Policy has been applied	$100	No
C.3	Eva Reith-Snare	$100	Sports and Participant Program. Regional representation.	Assist with costs associated with trip to Adelaide.	Policy has been applied	$100	No

Finance Policy Committee 3 February 2015

2.4 Request For Financial Assistance

Attachment 6 Womensport & Recreation NSW Inc.

Finance Policy Committee 3 February 2015

2.5 Evocities - Next Stage

TRIM REFERENCE: 2015/182

AUTHOR: Kathy Woolley, Director Corporate and Commercial Services

EXECUTIVE Summary

The Evocities Memorandum of Understanding (MOU) expires in June 2015. This report seeks Council’s consideration of options regarding the ongoing funding of the program.

The Evocities are Albury, Armidale, Bathurst, Dubbo, Orange, Tamworth and Wagga Wagga.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “10.1 Our Economy – Capitalise on the character and lifestyle of Orange to enhance tourism”.

Financial Implications

The allocation to the Evocities campaign concludes in the budget in the 2014/15 year in line with the end of the current Memorandum of Understanding.

A new MOU is being prepared and is seeking the following contribution from each of the seven councils:

Year 1 – 2015/2016	$60,000
Year 2 – 2016/2017	$65,000
Year 3 – 2017/2018	$70,000
Year 4 – 2018/2019	$75,000

If Council wishes to enter into an extension in this program, the financial implications will be presented as part of the budget considerations for the 2015/16 and subsequent years as outlined in the report.

Council has contributed on average $70,000 ($60,000 membership fees plus $10,000 travel/administration costs) per annum.

For all other general marketing/promotional programs (excluding the events Council has commissioned Taste Orange to deliver in the Tourism Services Contract), Council typically budgets a further $60,000 p.a. This funding provides for all other general marketing activities. Additional money is allocated for photographs, brochures, signage and hospitality (hosting media visits etc.) amounting to $58,000 p.a. In this context, the Evocities campaign is equivalent to around half of the overall budget for all other promotions for the City.

There are also inkind costs associated with the Evocities project as staff of Evocities councils maintain and update the Evocities website and provide support to those seeking more information about our cities. Council also hosts new residents welcome functions, media visits and provides information to the agency that handles the public relations activities of the Evocities campaign for media opportunities about new residents. The estimate of inkind costs p.a. to support the Evocities campaign have been estimated as a further $30,000 p.a. for Orange City Council.

In terms of return on the investment, over all the cities, 1,872 households are identified as having relocated to one of the Evocities as a result of the campaign. The seven councils have contributed a total of $2.4M over the life of the campaign.

Policy and Governance Implications

Nil

Recommendation

That Council

1 Consider the allocation of the identified funding of a future Evocities campaign in the 2015/16 budget initiatives.

2 If budget is allocated through the 2015/16 budget processes, that Council enter into the Memorandum of Understanding with the other Evocities and grant authority to affix the seal on any documents as required.

further considerations

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

Image and Reputation	The Evocities campaign is primarily a marketing campaign designed to attract new residents to regional cities. The campaign has built a considerable brand over its life.
Political	To date, 7 inland cities have participated in the Evocities campaign. An associated group, the Inland Forum now has all members of the same cities. There is an opportunity to reconsider the roles of the Evocities project in the context of the broadened role of the Inland Forum.
Stakeholders	Evocities has previously attracted NSW Government funding but has not been successful in securing funding for the future.

SUPPORTING INFORMATION

The Evocities campaign began in September 2010 and the seven inland cities of Albury, Armidale, Dubbo, Bathurst, Orange, Tamworth and Wagga Wagga have cooperatively marketed the advantages of regional NSW city life over the period of the campaign.

Some key outcomes from the Evocities campaign since its launch in September 2010 include:

· 267,957 visits to Evocities.com.au

· Over 1.07 million visits to Evojobs.com.au

· Over 16,000 jobs promoted

· 2,533 enquires lodged

· 2,208 media placements reaching a potential audience of more than 51 million people across both traditional and online media.

Since launching in September 2010, the Evocities have collectively welcomed 1,832 new households (as at end September 2014). The Evocities project has been managed via a Memorandum of Understanding (MOU) which has been renewed several times. The current MOU expires in June 2015.

In 2014 the Inland Forum which had been comprised of the councils of Wagga Wagga, Dubbo and Tamworth Councils, was expanded to cover all the Evocities councils. Membership of the Inland Forum is the Mayors and General Managers of each council.

Following a planning workshop of the Evocities Steering Committee in August 2014, a way forward was devised in order to continue the Evocities campaign into Sydney and other identified markets.

In late 2014, members of the Evocities Steering Committee met with the Inland Forum in order to consider how the two committees will work together without duplicating their efforts. As a result of these two meetings, a revised MOU has been drafted reflecting the objectives of the Evocities campaign which include:

1. To build on the historical investment and success of the Evocities campaign by continuing to raise awareness of the Evocities as vibrant, progressive regional cities with excellent job prospects, affordable housing and a great lifestyle offer;

2. To allow surrounding towns and villages to leverage off the success of the campaign through platforms such as Evojobs;

3. To attract people and businesses to live, work and/or invest in one of the Evocities by:

i. Continuing to undertake integrated marketing and PR campaigns into Sydney and other identified markets designed to present the Evocities as a more attractive alternative to capital city living; and

ii. Maintain, refine and/or enhance the Evocities websites as the main call to action for interested parties.

4. To attract skilled labour to the Evocities in support of business growth and development.

5. To provide advocacy for regional NSW in influencing regional and State economic development plans and strategies.

6. To provide a successful example of regional collaboration based on common interest and objectives, rather than geographic proximity.

7. To counter the negative perceptions of lifestyle opportunities outside metropolitan Sydney.

A proposed term of the new MOU is 1 July 2015 – 30 June 2019, to align with the Integrated Planning and Reporting Framework. There is an intention to discuss the new MOU at the next Evocities Steering Committee meeting and thence at the Inland Forum Meeting – both to be held in early 2015.

The recommendation for this report is that Council consider the allocation as a part of its budget deliberations in preparing the 2015/16 budget. If Council determines it will continue to commit funds and resources to the campaign, the MOU can be executed.