Agenda of Finance Policy Committee

Finance Policy Committee 1 September 2015

2.1 Statement of Bank Balances as at 18 August 2015

TRIM REFERENCE: 2015/2154

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 18 August 2015 the Cash Book Balance was $265,020.95

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 18 August 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 18 AUGUST 2015
		Ticketek
	General	Suspense

Opening Cash Book Balance 22/7/15 Debit/(Credit)	17,560.13	1,171.63

Add Deposits	8,413,013.36	39,968.98

Less Payments	9,898,552.54	-39,858.32

Add/(Less) Money Market at Call Account Movement	1,733,000.00

Closing Cash Book Balance 18/8/15 Debit/(Credit)	265,020.95	1,282.29

Balance as per Bank Statement	472,069.79	1,282.29

Add Outstanding Deposits	-229.96

Less Outstanding Cheques	-206,818.88

Add/(Less) Bank Adjustments

Balance as per Closing Cash Book Balance above Debit/(O'drawn)	265,020.95	1,282.29


Legal Overdraft limit all Funds = $20,673,000
Overdraft arranged at bank all funds $ 1,000,000

Finance Policy Committee 1 September 2015

2.2 Combined Rates and Charges Interim Reconciliation as at 18 August 2015

TRIM REFERENCE: 2015/2170

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 first quarter of the 2015/16 rating year.

Link To Delivery/OPerational Plan

Financial Implications

Nil

Policy and Governance Implications

Nil

Recommendation

That the information provided in the report by the Senior Revenue Officer Rates on Combined Rates and Charges Interim Reconciliation as at 18 August 2015 be acknowledged.

further considerations

SUPPORTING INFORMATION

The following report gives details of the combined rates and charges reconciliation as at 18 August 2015. As at that date $8,435,544.51 or 57.91% remains outstanding. As at 19 August 2014, 54.34% of the amount payable remained outstanding.

Debt Collection – Rates

Debt recovery for overdue rates for the 2014/15 year resulted in 1,266 accounts with a total value of $1,911,057.32 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.

As at 18 August 2015, 1024 accounts with payments totalling $1,428,727.72 have been finalised or action completed after being issued with 7 day letters in 2014/15.

A further 179 accounts have been either placed on hold and/or payment arrangements negotiated for arrears balances with the remaining 63 accounts with a debt balance of $161,569.55 being referred to Council’s Collection Agents for progression to the next stages in the debt recovery process.

Debt recovery processes for 2015/16 will commence in September 2015 with reminder letters and 7 Day Letters of Demand being issued for arrears balances following non-payment of the 1st Instalment.

General Rates	Ordinary Rates YTD 1st Quarter
	2014/2015	2015/2016
	$	$
Balance Outstanding	5,045,126.32	5,385,552.62


Sewer Charges	Sewer Charges YTD 1st Quarter
	2014/2015	2015/2016
	$	$
Balance Outstanding	1,263,722.98	1,415,909.49


Water Charges	Water Charges YTD 1st Quarter
	2014/2015	2015/2016
	$	$
Balance Outstanding	813,630.06	905,223.70


Garbage and Recycling Charges	Garbage Charges YTD 1st Quarter
	2014/2015	2015/2016
	$	$
Balance Outstanding	773,976.57	728,858.70

Finance Policy Committee 1 September 2015

2.3 Request for Financial Assistance

TRIM REFERENCE: 2015/2155

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.

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 resolves as per recommendations of this report, the following balances remain in the 2015/16 budget.

Program	Adopted Budget	Actual and committed	Remaining balance
General Donations	108,305	108,305¹	Nil
Major Promotions	30,900	27,294²	3,606
Sports Participant	13,900	5,450	8,450
Sports Facility	50,000	50,000	Nil

¹NB: This includes 20 x $100 reserved for school prize giving

²NB: This amount includes the sponsorship of the No Limit Management Event Council recently considered and placed on exhibition. The amount has been determined to be $4,294. This donation is still on exhibition until 2 September 2015. Once the exhibition period has closed, a report with any submissions received will be presented to Council for determination.

Policy and Governance Implications

Nil

Recommendation

1 That Council decline the request for financial assistance from The Come Together Choir and Orange Regional Museum Fund Ltd, as the General Donations budget has been fully expended this financial year.

2 That Council approve the request from the Orange All Blacks Rugby League Club, of $250 to be funded from the Sports Participant budget.

3 That Council reallocate the original donation to Camp Quality of $1,000 to be used for the Camel Races, rather than the Tractor Trek, funded from the Major Promotions budget.

further considerations

SUPPORTING INFORMATION

All previous recipients of donations over the past two years were individually written to and invited to submit applications for donations as part of the preparation of the Delivery/Operational Plan that Council adopted on 12 May 2015. Council has allocated the entire general donations budget at this stage as a result of this process and a few additional applications approved in earlier donations reports.

Central West Camp Quality was given a donation of $1,000 in July 2015 to be used towards the Tractor Trek. That donation cheque has since been returned to Council and a request to consider a subsequent application for funding of the Camel Races has been lodged for $10,000. They have since advised Council that they only wish to apply for a $5,000 donation. The recommendation in this report suggests that Council preserve the previously resolved donation amount at $1,000 but agree to the allocation changing from the Tractor Trek to the Camel Races. There are insufficient funds in the major promotions budget to allocate $5,000.

Attachments

1 Donations Table, D15/30346 ⇩

2 Come Together Choir, IC15/11246 ⇩

3 Orange Regional Museum Fund Ltd, IC15/12001 ⇩

4 Orange All Blacks Rugby League Club, IC15/11430 ⇩

5 Central West Camp Quality Volunteers, IC15/11286 ⇩

Finance Policy Committee 1 September 2015

2.3 Request for Financial Assistance

Attachment 1 Donations Table

Applicant

Amount Sought

Policy Position

Purpose

Comment

Recommendation

To be advertised

A.1

Come Together Choir

$500

Miscellaneous Request – max of $500

Senior Citizens Concert

Budget fully expended.

Nil

A.2

Orange Regional Museum Fund

$400 plus costs of drink staff to serve at the function

Reduction of Fees – 50% to a max of $500

Fundraising reception for Museum to be held in Theatre foyer on 30^th Sept 2015 in conjunction with the launch of a new book.

Budget fully expended.

Nil

Applicant

Amount Sought

Policy Position

Purpose

Comment

Recommendation

To be advertised

B.1

Orange All Blacks Rugby League Club

$2,700

Application was for Category 3 yearly allocation up to $3,000, however funds are fully expended.

This request relates to Regional/ State Representation – Group/Team which as per policy allows a donation of $250.

90 Team shirts for players and officials

Policy has been applied

$250

Applicant

Amount Sought

Policy Position

Purpose

Comment

Recommendation

To be advertised

C.1

Central West Camp Quality Volunteers

$5,000

Sponsorship to a max of $5,000

Camel Races to be held 27^th March 2016

Council donated $1,000 this financial year for the Tractor Trek, which was returned to Council, and Camp Quality now wish Council to redirect its support to the Camel Races.

$1,000

Finance Policy Committee 1 September 2015

2.4 Orange Rest Centre

TRIM REFERENCE: 2015/924

AUTHOR: Michelle Catlin, Manager Administration and Governance

EXECUTIVE Summary

For many years, Council has operated (via a contractor) the Orange Rest Centre, located in the car park of the Orange City Centre.

With the development of similar facilities within the Central Business District, and the current contract now expired, Council has an opportunity to review the future of the Orange Rest Centre.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “11.4 Our Economy – Ensure the commercial facilities, programs and activities provided by Council enhance the economic base of the City and are effectively and efficiently managed”.

Financial Implications

The cost to contract out the operation of the Rest Centre is in the order of $60,000 per annum, which is currently budgeted. If Council determines to continue the operation of the Centre, additional funds will need to be identified to replace furnishings and floorings in the Centre, at an estimated cost of $40,000.

Policy and Governance Implications

If Council determines not to proceed with operating the Orange Rest Centre, agreement to terminate the lease with the Orange City Centre will need to be resolved. If Council determines to continue to operate the Centre, a tender process for the operation and cleaning of the Centre will be undertaken.

Recommendation

1 That, on the basis of other services being available within the Central Business District, Council terminate the lease with the Orange City Centre for the Rest Centre building, effective 1 March 2016.

2 That permission be granted for the use of the Council Seal on any relevant document.

further considerations

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

Corporate Governance	If Council determines to not proceed with the operation of the Orange Rest Centre, arrangements would be made to terminate the current lease Council has with the Orange City Centre, for this building. The City Centre management have confirmed in writing their willingness to terminate this lease and retain control of the building.
Service Delivery	The Orange Rest Centre provides toilet, baby change and breast feeding facilities. While the survey of users indicate this is not a primary use of the building, Council may be criticised for reducing a service should the decision be made not to continue with this Centre. It should be noted, however, that the same facilities are provided within the City Centre and other locations within the Central Business District, with opening hours far greater than those of the Rest Centre. The Rest Centre also provides competitively priced tea, coffee and light refreshments such as toasted sandwiches. Again, there are many outlets within the Central Business District that offer these products, with many offering a seniors discount.
Image and Reputation	Feedback from regular users of the Rest Centre (via survey, letter and petition) describe the Rest Centre as a warm, welcoming place to visit and rest. Council has received contrary feedback on occasion, in relation to people loitering outside the Rest Centre, and making passers-by feel intimidated. If Council resolves to continue the operation of the Centre, funds needs to be spent replacing furnishings and floorings, and giving the Centre a good clean and freshen up with new paint etc.
Stakeholders	The current operator of the Rest Centre has had the contract to operate and clean the Centre since 1996. Given this tenure, a transitional period of six months is recommended to provide an opportunity for the provider to explore other employment opportunities.

SUPPORTING INFORMATION

Background

Prior to the construction of the Orange City Centre in 1986, the Women’s Rest Centre was a separate building located on the eastern side of Post Office Lane. When the City Centre was developed, a condition of the Development Application was that the developer provides a site for the provision of the Rest Centre, to be leased and managed by Council.

In November 1986, Council entered into a 50 year lease with the Orange City Centre, at a rental of $1 per annum. This lease requires that the building be used “solely for the purpose of conduct a rest centre including women’s and men’s conveniences and child care facilities”.

Council has contracted the operation and cleaning of the Rest Centre. The same contractor has had this contract for many years, and the most recent three year contract has now expired, continuing on a monthly basis pending Council’s determination of the future of this Centre.

Current Status

This matter is brought to Council following a briefing on the matter in May 2015. At that briefing, Councillors requested more information in relation to usage of the Centre. A survey was undertaken of users in June 2015, and a summary of the survey findings are provided in the next section.

Development Services staff confirm that with the development of parent’s room and associated facilities within the City Centre, the requirements of the original development application are being adequately satisfied within the Centre. It is noted that the opening hours (and therefore access to facilities) is far greater for the City Centre than the Rest Centre’s current opening hours of 9-5 week days and 9-12 on Saturdays.

The management of the Orange City Centre have been consulted in relation to the Rest Centre, and have formally confirmed they would prefer the Rest Centre be closed, and the lease to Council for this building be terminated.

Survey of users

Over a two week period in June, Council staff conducted a survey of users of the Rest Centre. This was conducted by a member of staff who attended the Centre at various times over those two weeks, and completing a survey response for every person who visited the Centre. A summary of the results indicates:

Average number of visitors	30 per day (some days busier than others)
% of local residents	87%
Average time spent in the Rest Centre	32% - Under 30 minutes 68% - More than 30 minutes, up to all day
% of regular users	Approximately 97% of users surveyed had used the Centre before. Some 35% of “regulars” use the Centre every day.
Purpose of visit	With many of the visitors to the Centre staying for longer than a few minutes, the most popular purpose appears to be a place to rest while waiting for an appointment or the bus, to socialise and have a cheap cup of tea/coffee.
General comments	Several people indicated the Centre is a warm place to rest in Winter. A number of visitors use the shower facilities. Many visitors indicated the Centre provided a place to have refreshments and read the paper, as well as somewhere to wait for appointments or public transport. The request was made by several visitors to install Wi-Fi in the Centre.

Petition/letters of support

Council has received a petition with 342 signatures urging Council to keep the Rest Centre open, undertaken by the current contractor in local shopping centres. Council has also received three letters of support for the retention of the Rest Centre, from people passionate about the Centre remaining open.

Condition of the building

The Rests Centre includes toilets, showers, a change/nursing room, kitchenette and lounge area.

If Council determines to retain the Rest Centre, funds need to be identified to undertake a clean-up and re-fresh of the building. This includes replacing furnishings, painting, tile replacement and flooring. This is estimated at a cost of $40,000.

Assessment of current usage

With the survey results indicating the use of the Rest Centre primarily relates to people having a place in the central business district to rest, socialise or wait for appointments or the bus, the Centre’s current proximity to these services and public transport is an advantage over other Council-owned buildings in the Central Business District.

It is clear that the Rest Centre is providing a service to a small number of residents and visitors to the City. Local residents that use the Centre appear to do so regularly, and have formed relationships with the current contractor.

If Council adopted the recommendation, attempts would be made to communicate with regular users of the Rest Centre, to identify other options and locations within the Central Business District to access these services. This would include Council’s facilities at the Community Information and Services Centre, Senior Citizens Centre and Civic Centre.

Requests will also be made of the City Centre to establish additional seating within the Centre, and to give consideration to establishing a small children’s play area to complement the existing facilities in the Centre.

Option

If Council were of the view to retain the Rest Centre, an alternate motion could be:

“That Council conduct a tender for the ongoing operation and cleaning of the Orange Rest Centre, with staff to identify a funding source for the required refurbishment at the next quarterly budget review.”