ORANGE CITY COUNCIL
Finance Policy Committee
Agenda
6 September 2016
Notice is hereby given, in accordance with the provisions of the Local Government Act 1993 that a Finance Policy Committee meeting of ORANGE CITY COUNCIL will be held in the Council Chamber, Civic Centre, Byng Street, Orange on Tuesday, 6 September 2016.
Garry Styles
General Manager
For apologies please contact Michelle Catlin on 6393 8246.
Finance Policy Committee 6 September 2016
2.1 Statement of Bank Balances as at 1 August 2016
2.2 Request for Financial Assistance
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.
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Recommendation It is recommended that Committee Members now disclose any conflicts of interest in matters under consideration by the Finance Policy Committee at this meeting. |
TRIM REFERENCE: 2016/1879
AUTHOR: Kim Thompson, Accounting Officer - Management
EXECUTIVE Summary
Council operates one Bank Account and is required to carry out a Bank Reconciliation at the end of each month. As at 1 August 2016 the Cash Book Balance was $530,770.39.
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
Council has been advised that as a council included in the NSW Government’s merger proposals under consideration by the Office of Local Government since referral on 6 January 2016, Council must comply with the merger proposal period guidelines issued under S23A of the Local Government Act 1993.
The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.
Any expenditure outside the adopted budget requires the identification of clear and compelling grounds and must be approved by Council at a meeting that is open to the public. The guidelines indicate the resolution of Council for increased expenditure must specify the reasons why the expenditure is required and warranted.
If increased expenditure is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, Council is required to exhibit the increase to the budget and consider comments received.
Council must also avoid entering into contracts or undertakings where expenditure or revenue is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, unless the contract or undertaking is as a result of a decision or procurement process commenced prior to the merger proposal period or where entering into a contract or undertaking is reasonably necessary for the purposes of meeting the ongoing service delivery commitments of the Council or was previously approved in the Council’s Delivery/Operational Plan.
Policy and Governance Implications
Nil.
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That the information provided in the report by the Accounting Officer – Management on the Statement of Bank Balances as at 1 August 2016 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.
1 Bank Reconciliation as at 1 August 2016, D16/35946⇩
Finance Policy Committee 6 September 2016
2.1 Statement of Bank Balances as at 1 August 2016
Attachment 1 Bank Reconciliation as at 1 August 2016
TRIM REFERENCE: 2016/1972
AUTHOR: Josie Sanders, Management Accountant
EXECUTIVE Summary
Council is in receipt of requests for financial assistance under section 356 of the Local Government Act 1993. The report provides details of applications received.
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
Council has been advised that as a council included in the NSW Government’s merger proposals under consideration by the Office of Local Government since referral on 6 January 2016, Council must comply with the merger proposal period guidelines issued under S23A of the Local Government Act 1993.
The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.
Any expenditure outside the adopted budget requires the identification of clear and compelling grounds and must be approved by Council at a meeting that is open to the public. The guidelines indicate the resolution of Council for increased expenditure must specify the reasons why the expenditure is required and warranted.
If increased expenditure is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, Council is required to exhibit the increase to the budget and consider comments received.
Council must also avoid entering into contracts or undertakings where expenditure or revenue is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, unless the contract or undertaking is as a result of a decision or procurement process commenced prior to the merger proposal period or where entering into a contract or undertaking is reasonably necessary for the purposes of meeting the ongoing service delivery commitments of the Council or was previously approved in the Council’s Delivery/Operational Plan.
Implications in this report
None of the applications are recommended to be funded becasue there are no uncommitted funds available funds for the applications attached to the report given both the General Donations, and Major Promotions budget have been fully expended.
As Council is aware, the donations policy is promoted widely as part of the budget process and all applicants (successful or not) who have sought donations in the past couple of years are individually written to with an invitation for them to make submissions for donations/sponsorships so their allocation is more certain given it is included in the budget processes. This has been successfully completed again this year.
However, for the first time this year, $2,000 for each Councillor has been reserved to enable Councillors to allocate $2,000 to requests as they arise throughout the year. If any of the attached requests are supported by a Councillor, an allocation can be made from the $2000 allocation. A table is provided below and will be updated with each report to show how much each Councillor has apportioned to their supported projects.
The overall donations/sponsorship budget for 2016/17 is as follows:
|
Program |
Adopted Budget |
Actual/Committed |
Remaining balance |
|
General Donations |
84,378 |
84,378* |
Nil |
|
Major Promotions |
72,127 |
72,127 |
Nil |
* The allocation of 19 x $100 reserved for school prize giving is accounted for in the actual/committed column of the table. The actual/committed column also includes the Councillor allocation of $24,000 ($2,000 per Councillor) which is available to be allocated by Councillors throughout the year.
Individual Councillor allocation amounts are as follows:
|
Councillor |
Adopted Budget |
Actual/Committed |
Remaining balance |
|
Councillor Davis |
$2,000 |
$0 |
$2,000 |
|
Councillor Gryllis |
$2,000 |
$0 |
$2,000 |
|
Councillor Brown |
$2,000 |
$0 |
$2,000 |
|
Councillor Duffy |
$2,000 |
$0 |
$2,000 |
|
Councillor Gander |
$2,000 |
$0 |
$2,000 |
|
Councillor Hamling |
$2,000 |
$0 |
$2,000 |
|
Councillor Jones |
$2,000 |
$0 |
$2,000 |
|
Councillor Munro |
$2,000 |
$0 |
$2,000 |
|
Councillor Taylor |
$2,000 |
$0 |
$2,000 |
|
Councillor Turner |
$2,000 |
$0 |
$2,000 |
|
Councillor Whitton |
$2,000 |
$0 |
$2,000 |
Policy and Governance Implications
Nil
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That, should a Councillor wish to support any of the applications for sponsorship, the applicant and amount be specified. |
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
Apart from the Councillor allocation identified above, the budgets in both the donations and major promotions areas have been fully expended via the annual call for requests and subsequent allocation of funding approved by Council in the Delivery/Operational Plan.
The following requests have been made for financial assistance recently. As no budget remains, none can be supported as staff can not allocate money outside the approved budget.
However, Councillors could opt to apply part or all of their individual allocation to these applicants. The policy position on each is provided for context.
· The Come Together Choir - Policy position - Recommend refusal as Council has already provided financial support of $3,000 this financial year for the purchase of stage rises and the policy limits applicants to one financial assistance per organisation per year.
· Rotary D9700 annual conference sponsorship – Policy position – recommend refusal as Council has already approved a donation of $2,500 towards this event this financial year. The organisers have asked that the Mayoral reception sponsorship be re-considered. It was part of their original application but only the $2,500 towards printing of the program and Theatre hire was approved. The estimated value of a Mayoral reception is between $1,250 - $1,500 to cover catering and staffing costs.
· Orange Legacy Club – Policy position - Complies with policy and if budget had been available staff would have recommended approval of the application for $600 for banners to promote their fund raising activities.
· Garlic Harvest Festival – submission from Thegarlicsmith – Policy position would have supported the application if budget had been available. The request is for the entire costs of the event identified in the application of $3,135. There is an identified revenue stream for the organisers of the event from stall rental although it is not quantified in terms of total revenue they will raise.
1 Donation Table, D16/37510⇩
2 The Come Together Choir, IC16/12380⇩
3 Orange Legacy Club, IC16/12643⇩
4 Thegarlicsmith, IC16/10909⇩
5 Rotary District 9700, IC16/2661⇩
Finance Policy Committee 6 September 2016
2.2 Request for Financial Assistance
Attachment 1 Donation Table
|
No |
Applicant |
Amount Sought |
Policy Position |
Purpose |
Comment |
Recom-mended |
To be advertised |
|
A.1
|
The Come Together Choir |
$500 |
General Request – up to a max of $500 |
Morning tea costs in hosting an annual concert for residents, carers and staff of Care facilities in Orange. |
Council has already provided $3,000 in this financial year for stage risers. |
No |
No |
|
A.2 |
Orange Legacy Club |
$600 |
General Request – up to a max of $500 |
Annual Legacy Banners on Council Poles during Annual Appeals Week 29 Aug- 2 Sept 2016 |
Policy Applied |
No |
No |
|
No |
Applicant |
Amount Sought |
Policy Position |
Purpose |
Comment |
Recom-mended |
To be advertised |
|
B.1
|
Thegarlicsmith |
$3,135 |
Sponsorship – Up to a max of $5,000 |
Garlic Harvest Festival to be held at the Lakehouse 21 January 2017 |
Policy Applied |
No |
No |
|
B.2 |
Rotary District 9700 |
$1,250 -$1,500
|
Sponsorship – Up to a max of $5,000 |
Mayoral hosting Rotary Conference 17 March 2017 for approx. 50 people at $20, and 3 staff at $35 for min 2 hours |
Council has already committed $2,500 donation to go toward printing costs and $500 reduction toward Theatre hire costs. |
No |
No |
2.2 Request for Financial Assistance
Attachment 2 The Come Together Choir
2.2 Request for Financial Assistance
Attachment 3 Orange Legacy Club
2.2 Request for Financial Assistance
Attachment 4 Thegarlicsmith
2.2 Request for Financial Assistance
Attachment 5 Rotary District 9700
TRIM REFERENCE: 2016/1946
AUTHOR: Michelle Catlin, Manager Administration and Governance
EXECUTIVE Summary
This report continues the review of Council’s Strategic Policy Register. A new policy is proposed relating to sponsorships at the Museum. Council is required to review the Councillors Payment of Expenses and Provision of Facilities policy. The Outdoor Dining Policy has been on exhibition and is recommended for adoption.
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
Council has been advised that as a council included in the NSW Government’s merger proposals under consideration by the Office of Local Government since referral on 6 January 2016, Council must comply with the merger proposal period guidelines issued under S23A of the Local Government Act 1993.
The guidelines instruct Council it should expend money in accordance with the detailed budget adopted for the purposes of implementing the Delivery/Operational Plan for the 2015/16 year.
Any expenditure outside the adopted budget requires the identification of clear and compelling grounds and must be approved by Council at a meeting that is open to the public. The guidelines indicate the resolution of Council for increased expenditure must specify the reasons why the expenditure is required and warranted. If increased expenditure is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, Council is required to exhibit the increase to the budget and consider comments received.
Council must also avoid entering into contracts or undertakings where expenditure or revenue is greater than $250,000 or 1% of the Council’s revenue from rates in the preceding year, whichever is the greater, unless the contract or undertaking is as a result of a decision or procurement process commenced prior to the merger proposal period or where entering into a contract or undertaking is reasonably necessary for the purposes of meeting the ongoing service delivery commitments of the Council or was previously approved in the Council’s Delivery/Operational Plan.
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.
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1 That the following Strategic Policies be placed on public exhibition: § ST137 – Orange Regional Museum Sponsorship § ST020 – Councillors – Payment of Expenses and Provision of Facilities 2 That Council adopt Strategic Policy ST107 – Outdoor Dining Areas. |
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
Policies for Exhibition
|
Policy |
Comment |
|
ST137 – Orange Regional Museum Sponsorship |
New Policy providing a framework in which sponsorships and/or donations to the Orange Regional Museum will be managed. |
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ST020 – Councillors Payment of Expenses and Provision of Facilities |
Notation in the Policy that any Councillor expenditure is to be approved by the Mayor and General Manager. Section 3.3 – What Conferences may be attended – Inclusion of Tidy Towns (Blue Star) Conferences Section 7.1.2 – Addition of provision allowing for return of equipment in the event of an amalgamation Section 7.1.3 – Provision allowing Councillors to acquire equipment in the event of an amalgamation Minor amendments to attachments and approval forms. |
Policy for Adoption
At its meeting held on 5 July 2016, Council resolved to exhibit Strategic Policy – Outdoor Dining Areas. The exhibition period closed on 12 August 2016 and no submissions were received. The policy is therefore presented for adoption.
1 FOR EXHIBITION - DRAFT - Strategic Policy - ST137 - Orange Regional Museum Sponsorship Policy and Procedure (2016), D16/39006⇩
2 FOR EXHIBITION - DRAFT - Strategic Policy - ST020 - Councillors Payment of Expenses and Provision of Facilities - Policy and Procedure, D16/39005⇩
3 FOR ADOPTION - Strategic Policy - ST107 - Outdoor Dining Areas, D16/27433⇩
Finance Policy Committee 6 September 2016
2.3 Strategic Policy Review
Attachment 1 FOR EXHIBITION - DRAFT - Strategic Policy - ST137 - Orange Regional Museum Sponsorship Policy and Procedure (2016)
2.3 Strategic Policy Review
Attachment 2 FOR EXHIBITION - DRAFT - Strategic Policy - ST020 - Councillors Payment of Expenses and Provision of Facilities - Policy and Procedure
