Agenda of Council Meeting

ORANGE CITY COUNCIL

MINUTES OF THE

Ordinary Council Meeting

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

ON 1 May 2018

COMMENCING AT 7.00pm

1 Introduction

Attendance

Cr R Kidd (Mayor), Cr J McRae (Deputy Mayor), Cr K Duffy, Cr J Hamling, Cr T Mileto, Cr S Munro, Cr S Nugent, Cr M Previtera, Cr S Romano, Cr G Taylor (7.10pm), Cr R Turner, Cr J Whitton

General Manager, Director Corporate and Commercial Services, Director Development Services, Director Community, Recreation and Cultural Services, Director Technical Services, Manager Administration and Governance, Manager Corporate and Community Relations, Governance Coordinator, Manager Development Assessments, Senior Planner (Glenn)

1.1 APOLOGIES

Nil

1.2 LIVESTREAMING AND RECORDING

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

1.3 ACKNOWLEDGEMENT OF COUNTRY

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

Cr J McRae declared a pecuniary interest in item 2.7 of the Planning and Development Committee (Use of Old Netball Courts for Overflow Parking) as she owns property adjacent to the old netball courts.

Cr J McRae declared a significant non-pecuniary interest in item 6.5 (Racing Orange) of the Closed Council Meeting as a family member is on the Board of Racing Orange.

Cr R Kidd declared a significant non-pecuniary interest in item 5.2 (Aussie Night Market Event) as on the Board of TDO, one of the submitters opposing this event.

Cr J Hamling declared a significant non-pecuniary interest in item 5.2 (Aussie Night Market Event) as on the Board of TDO, one of the submitters opposing this event.

Cr J Whitton declared a significant non-pecuniary interest in item 5.2 (Aussie Night Market Event) as on the Board of TDO, one of the submitters opposing this event.

2 Mayoral Minutes

2.1 2008 Blayney, Cabonne and Orange Sub-Regional Rural and Industrial Land Use Strategy

TRIM Reference: 2018/993

RESOLVED - 18/179 Cr J Whitton/Cr S Munro

That Orange City Council commit to a review/update of the 2008 Blayney, Cabonne and Orange Sub-Regional Rural and Industrial Land Use Strategy to a maximum of $50,000.

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL ADJOURNED FOR THE CONDUCT OF THE OPEN FORUM AT 7.04PM

OPEN FORUM

PDC – Item 2.2 - Development Application DA 347/2017(1) - 68-74 Molong Road

Lynette Bullen

Ms Bullen outlined her objection to the development application.

Greg Hargreaves – Applicant

Mr Hargraves sought Council’s approval of the development.

Mauro D’Amico

Mr D’Amico outlined his objection to the development application.

Josh Fitzgerald

Mr Fitzgerald outlined his object to the development application.

Thomas Priest

Mr Priest declined to speak.

PDC – Item 2.4 - Development Application DA 405/2017(1) - 241 Ploughmans Lane

Jeff Errey

Mr Errey outlined his concerns with the development.

Paul Owens – Applicant

Mr Owens sought Council’s approval of the development.

Leon Paix – City of Orange Brass Band

Mr Paix distributed information to Council on costs faced by the Band and sought Council’s consideration of possible support that could be provided.

CCL - Item 2.1 - 2008 Blayney, Cabonne and Orange Sub-Regional Rural and Industrial Land Use Strategy

Anne Satler

Ms Satler sought Council’s support of the update to the Blayney, Cabonne and Orange Sub-Regional Rural and Industrial Land Use Strategy.

FPC – 2.2 – Orange Theatre Company

Tim May

Mr May outlined history and operations of the Orange Theatre Company and sought Council’s support to either waive the outstanding loan repayments totalling $30,000, waive half of the outstanding loan repayments (ie $15,000) or extend the loan repayment period for a further two years (to be reviewed after the current season).

Item 4.1 - Formation of Orange Swim Club

Michael Thornhill - Jets

Mr Thornhill spoke in favour of the model adopted by Council on 3 April 2018 for the formation of one Orange swim club.

Theresa Armstrong – Volunteer Coach

Ms Armstrong spoke in favour of the model for the one swim club that utilises volunteer coaches.

Tanya Chapman – City of Orange Swim Club

Ms Chapman outlined concerns with model adopted by Council on 3 April 2018.

Peter Archer

Mr Archer spoke in support of the “Randwick Model” and expressed concern about the model adopted by Council.

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL RESUMED AT 8.15PM

3 Confirmation of Minutes of Previous Meeting

RESOLVED - 18/180 Cr J Whitton/Cr S Munro

That the Minutes of the Ordinary Meeting of Orange City Council held on 17 April 2018 (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 17 April 2018.

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL ADJOURNED FOR THE CONDUCT OF THE POLICY COMMITTEE MEETINGS AT 8.16PM

THE MAYOR DECLARED THE ORDINARY MEETING OF COUNCIL RESUMED AT 10.01PM

4 Notices of Motion/Notices of Rescission

4.1 Formation of Orange Swim Club

TRIM Reference: 2018/1039

THE RESCISSION Motion WAS MOVED AND SECONDED Cr K Duffy/Cr S Munro

That Council rescind the decision of the Sport and Recreation Policy Committee of 3 April 2018 being:

RESOLVED - 18/141 Cr J Whitton/Cr J McRae

1 That Council acknowledge the support from Jets Swim Club and Orange District Swim Group to join a new Council based Swimming Club.

2 That Council progress the establishment of a new Council based swimming club as detailed in the report.

3 That the new Swim Club advertise and appoint the positions of Vice President and Coaching Director.

THE RESCISSION MOTION ON BEING PUT TO THE MEETING WAS LOST

4.2 Easy to Do Business

TRIM Reference: 2018/1044

RESOLVED - 18/201 Cr J McRae/Cr S Nugent

1 That Council delegate authority to the General Manager to enter into a contract with Service NSW for Easy to do Business.

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

4.3 Notice of Motion - Cities Power Partnership by Crs Nugent, McRae and Previtera

TRIM Reference: 2018/1056

MOTION Cr S Nugent/Cr M Previtera

1 That in accordance with Council’s commitment to the Cities Power Partnership (CPP) and in the interests of Council leading by example in responsible energy consumption, Council adopt the following five pledges as a framework for future renewable energy, energy efficiency and sustainable transport projects:

· Power Council operations by renewables, directly (with solar PV or wind), or by purchasing Greenpower (from electricity retailers). Set targets to increase the level of renewable power for Council operations over time.

· Adopt best practice energy efficiency measures across all Council buildings, and support community facilities to adopt these measures.

· Public lighting can use a large proportion of a City’s energy budget - roll out energy efficient lighting (particularly street lighting) across the municipality.

· Ensure that new developments are designed to maximize public and active transport use, and are designed to support electric vehicle uptake

· Implement an education and behaviour change program to influence the behaviour of Council officers, local residents and businesses within the municipality to drive the shift to renewable energy, energy efficiency and sustainable transport.

2 That any Council projects proposed in support of the Cities Power Partnership (CPP) Pledges which require resources not currently budgeted, come before Council for consideration and adoption subject to Council staff analysis and recommendation.

AMENDMENT Cr T Mileto/Cr S Munro

That Orange City Council do a cost analysis of the normal cost of power consumption from the retail provider and the cost to Council of nominating green energy.

THE AMENDMENT ON BEING PUT TO THE MEETING WAS LOST

THE MOTION ON BEING PUT TO THE MEETING WAS CARRIED

RESOLVED - 18/202 Cr S Nugent/Cr M Previtera

· Adopt best practice energy efficiency measures across all Council buildings, and support community facilities to adopt these measures.

· Public lighting can use a large proportion of a City’s energy budget - roll out energy efficient lighting (particularly street lighting) across the municipality.

· Ensure that new developments are designed to maximize public and active transport use, and are designed to support electric vehicle uptake

5 General Reports

5.1 Lease of Space for Broadcast Site

TRIM Reference: 2018/351

MOTION Cr J Whitton/Cr R Turner

1 That Council enter into a five year lease of part of the Water Treatment Plant to Crallen Pty Ltd for the purposes of broadcasting, with one five year option.

2 That approval be granted to use the Council Seal on any necessary documentation if required.

AMENDMENT Cr R Turner/Cr S Munro

That the item be deffered pending consultation on this proposal with Orange Community Radio.

THE AMENDMENT ON BEING PUT TO THE MEETING WAS LOST

THE MOTION ON BEING PUT TO THE MEETING WAS CARRIED

RESOLVED - 18/203 Cr J Whitton/Cr R Turner

1 That Council enter into a five year lease of part of the Water Treatment Plant to Crallen Pty Ltd for the purposes of broadcasting, with one five year option.

2 That approval be granted to use the Council Seal on any necessary documentation if required.

5.2 Aussie Night Markets event

TRIM Reference: 2018/1021

Crs R Kidd, J Hamling, J Whitton and the General Manager declared a significant non-pecuniary interest in this item as Directors on the Board of TDO, one of the submitters opposing this event, left the Chamber, and did not participate in the voting or debate on this item.

Cr McRae (Deputy Mayor) chaired the meeting for this item

MOTION Cr R Turner/Cr S Nugent

That Council not support the proposed Aussie NightMarket event proposed for 18 and 19 May 2018.

ON BEING PUT TO THE MEETING THE MOTION WAS LOST

MATTER ARISING

RESOLVED - 18/204 Cr K Duffy/Cr G Taylor

That Council permit the Aussie Night Market event to proceed on 18 and 19 May 2018 as a one-off event, with a review to be undertaken after the event to determine community support within the Orange Local Government Area of the event.

** Crs Turner, Munro and Nugent requested that their names be recorded as having voted against this decision of the Council. **

Cr Kidd (Mayor) resumed the chair

5.3 Health Precinct Masterplan

TRIM Reference: 2018/1053

RESOLVED - 18/205 Cr K Duffy/Cr J Hamling

That the report by the Manager of Corporate and Community Relations on the Health Precinct Masterplan be acknowledged.

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 General Manager 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.

Cr Duffy expressed concern about Item 6.5 – Racing Orange, being considered in a Closed meeting. Council was advised that the report and attachments included information that legitimately met requirements of Section 10A(2) d and e.

The Mayor ruled the matter be considered in Closed Meeting.

RESOLVED - 18/206 Cr S Nugent/Cr K Duffy

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 Entering into a Regional Contract for the supply and delivery of Bitumen Emulsion to Central NSW Councils

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 (d)ii information that would, if disclosed, confer a commercial advantage on a competitor of the council.

6.2 Tender - Provision of Air Conditioning Maintenance

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.

6.3 Lease Lot Hangar Site F Orange Airport

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.

6.4 Sale 1 Ash Street - Lot 1 DP 839889

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.

6.5 Racing Orange

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 (d)i commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it.

6.6 Robertson Park toilet design and costing

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.

6.7 Landing charges and flight costs

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.

The Mayor declared the Ordinary Meeting of Council adjourned for the conduct of the Closed Meeting at 11.29pm.

The Mayor declared the Ordinary Meeting of Council resumed at 12.06am.

7 Resolutions from Closed Meeting

The General Manager read out the following resolutions made in the Closed Meeting of Council.

6.1 Entering into a Regional Contract for the supply and delivery of Bitumen Emulsion to Central NSW Councils

TRIM Reference: 2018/896

RESOLVED - 18/207 Cr R Turner/Cr S Munro

1 That Council enter into a two year contract with Boral Asphalt for the supply and delivery of bitumen emulsion.

2 That approval be granted for the use of the Council Seal on any necessary documentation if required.

Division of Voting
Voted For	Cr R Kidd (Mayor), Cr J McRae (Deputy Mayor), Cr K Duffy, Cr J Hamling, Cr T Mileto, Cr S Munro, Cr S Nugent, Cr M Previtera, Cr S Romano, Cr G Taylor, Cr R Turner, Cr J Whitton
Voted Against	Nil
Absent	Nil

6.2 Tender - Provision of Air Conditioning Maintenance

TRIM Reference: 2018/601

RESOLVED - 18/208 Cr J Hamling/Cr K Duffy

1 That the contract F2726 for air conditioner maintenance be awarded to Williams Oriel for the amount of $32,160 for annual inspections and a maintenance technician rate of $90/hour with a $110 per callout for a three year period.

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

Division of Voting
Voted For	Cr R Kidd (Mayor), Cr J McRae (Deputy Mayor), Cr K Duffy, Cr J Hamling, Cr T Mileto, Cr S Munro, Cr S Nugent, Cr M Previtera, Cr S Romano, Cr G Taylor, Cr R Turner, Cr J Whitton
Voted Against	Nil
Absent	Nil
6.3 Lease Lot Hangar Site F Orange Airport TRIM Reference: 2018/961
RESOLVED - 18/209 Cr K Duffy/Cr S Nugent 1 That Council enters into a lease of the eastern section of Hangar F Orange Airport for a period of six months. 2 That permission be granted to use the Council Seal on all necessary documentation, if required.

6.4 Sale 1 Ash Street - Lot 1 DP 839889

TRIM Reference: 2018/1043

RESOLVED - 18/210 Cr S Munro/Cr R Turner

1 That Council sell 1 Ash Street Orange for the sum of $759,525 (ex GST).

2 That the proceeds be transferred to the Land Development Reserve.

3 That permission be granted for the use of the Council Seal on any relevant document if required.

6.5 Racing Orange

TRIM Reference: 2018/1049

Cr J McRae declared a significant non-pecuniary interest in this item as a family member is on the Board of Racing Orange, left the Chamber, and took no part in the debate or voting on this matter.

MOTION Cr R Kidd/Cr S Munro

That this matter be deferred until Council receives advice from the Office of Local Government.

AMENDMENT Cr G Taylor/Cr T Mileto

That this matter be deferred.

THE AMENDMENT ON BEING PUT TO THE MEETING WAS LOST

THE MOTION ON BEING PUT TO THE MEETING WAS CARRIED

RESOLVED - 18/211 Cr R Kidd/Cr S Munro

That this matter be deferred until Council receives advice from the Office of Local Government.

6.6 Robertson Park toilet design and costing

TRIM Reference: 2018/1051

RESOLVED - 18/212 Cr R Turner/Cr J McRae

1 That Council endorse the location of the proposed toilet facility contained in this report.

2 That Council progress with the full design of toilet contained in this report.

3 That Council lodge a development application for the toilet facility in accordance with this report, as soon as possible.

** Cr Nugent requested that his name be recorded as having voted against this decision of the Council. **

6.7 Landing charges and flight costs

TRIM Reference: 2018/74

RESOLVED - 18/213 Cr R Turner/Cr S Munro

1 That Council enter into a five year growth incentive partnership with Rex and a community fare scheme of $109 each way flights to Sydney as set out in this report.

2 That permission be granted to use the Council Seal on all necessary documentation, if required.

QUESTION TAKEN ON NOTICE

Cr Munro requested the State and Federal Members be invited to attend a meeting of Orange City Council to discuss opportunities for Orange.

The Meeting Closed at 12.15AM

This is Page Number 12 and the Final Page of the Minutes of the Ordinary Meeting of Orange City Council held on 1 May 2018.

Council Meeting 15 May 2018

5.2 Draft Community Strategic Plan and Delivery/Operational Plan 2018/19 - 2021/22

RECORD NUMBER: 2018/1107

AUTHOR: Nick Redmond, Manager Corporate and Community Relations

EXECUTIVE Summary

In accordance with the Integrated Planning and Reporting requirements set out in the Local Government Act 1993, this report presents the draft 2018/19 – 2021/22 Delivery/Operational Plan 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 Delivery/Operational Plan 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.

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

The draft budget delivers a $176k surplus and $62 million capital expenditure in the general fund. There are also operating surpluses in water ($1.5 million) and sewer funds ($1.1 million) and capital works totalling $6.5 million and $2.7 million respectively.

Council is again undertaking an ambitious program of seeking external funding to deliver projects for the Orange community.

Key projects include $15 million towards a CBD upgrade (plus $15 million in year 2), $17.83 million for the Southern Feeder Road, $1.76 million for Cargo Road, $4.6 million for the NDR/William Maker Drive roundabout, $1.97 million for the Cricket Centre of excellence and $1.5 million for a new animal shelter.

Council has set aside more than $200,000 for the support of community organisations and events as part of donations and sponsorship budgets.

There has been a richness of ideas and priorities brought forward in the CSP consultation that has been utilised in adding to the baseline and programs of previous plans. Key amongst these has been the prioritisation and upscaling of plans for the Orange CBD.

Many of the ideas and priorities which have come forward are already within the Plan or are able to be fitted within the scope of the Plan.

In formulating the plans the guidance of Council in terms of program, project and grant priorities have been fitted where possible. This has included the provision to build a new animal facility and continue to pursue projects such as the Southern Link Road. Provision has also been made to seek to leverage further funding for Wade Park along with allocation for a further sport project to be identified for the current sport projects review.

Those priorities and ideas which haven’t been able to be afforded at this stage will be further reviewed to look at opportunities going forward at quarterly reviews and subsequent plans as they provide a valuable ledger of community wishes.

In pulling forward some key projects the Plan is ambitious and will require some loans as well as significant effort in some cases to achieve co-funding and grants. The use of additional loans will see Council’s debt ratio remain above the appropriate threshold by a modest margin, assisted by the retirement of an existing loan in late 18/19.

It is considered that Council ought to be ambitious in pursuing a large project and service agenda, making the most of leverage funding opportunities to lift outcomes for the community.

At an operational budget level, Council has made significant savings on areas such as insurances, however some costs have risen well above the typical 1.8% rise afforded in the budget, particularly in terms of energy costs.

Some additional operational levels of service are proposed in areas such as supporting companion animal services to cope with growth in demands. This has resulted in a low level of operating surplus in general fund and a moderate level of surplus in the utility funds (water and sewer funds).

A difficult element of the budget has been the significant change to waste management as a result of international changes to recycling options. It is very early days in establishing new options for recycling in NSW, perhaps such as energy generation, however it is hoped that State and Federal Governments in concert with industry will establish a new strategic direction over the next year.

The 18/19 budget proposes that Council in the interim continues with short term recycling increases in cost to be met by consumers, as a necessary option while longer term strategic plans are developed across the industry.

The draft documents are presented for placement on public exhibition.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “1.3 Our City - Ensure a robust framework that supports the community’s and Council’s current and evolving activities, services and functions”.

Financial Implications

The proposed Delivery/Operational Plan identifies the operational and the subsequent budgetary impacts arising in the delivery of the levels of service proposed.

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 16 May. Following exhibition the community submissions and the draft budget documents could be brought back to a meeting on 19 June.

Recommendation

That Council place the draft Community Strategic Plan, draft Delivery/Operational Plan 2018/19 – 2021/22 and draft Resourcing Strategy documents (Long Term Financial Plan, Workforce Management Plan and Asset Management Policy and Strategy) on public exhibition for a minimum of 28 days.

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/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/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.

Image and Reputation

The consultation process in developing the draft Community Strategic Plan was a generally positive process and well received by those engaged in the consultation. It created a level of goodwill around Council listening to the community.

One of the challenges in such a process is that it does raise significant expectations as the volume of projects and initiatives often outstrips the resources, finances and jurisdiction of Orange City Council.

Stakeholders

The Delivery/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.

The Community Strategic Plan was developed in consultation with the community, and includes community-developed objectives. The Strategies and Actions set out in the Plan identify how Council aims to meet those objectives.

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.

The Framework is outlined in the following diagram:

Source: Office Local Government

Community Strategic Plan

At the commencement of a new term of Council a Community Strategic Plan must be prepared in consultation with the community.

The engagement process was conducted online and face-to-face to ensure a broad-cross section of the community was provided with the opportunity to contribute their ideas.

This included:

· An online engagement period utilising the “Your Say” engagement tool

· A workshop with the Orange City Councillors

· Pop-up consultations at the shopping centre and the Orange Farmer’s Market

· Consultation with the community at the Glenroi community centre

· Invitation to 350 community groups seeking their input

· Workshops with school leaders from Primary and Secondary schools within Orange

· Workshops with the community

The aim of the engagement was to collect ideas, concepts and issues that were important to members of the Orange community. Each of the methods of engagement focused on three questions:

· What do I love about Orange?

· What can we do better?

· What do you wish was here?

Online participants were invited to provide an idea or comment around these three key questions. Participants at the workshops were asked provide ideas on sticky notes and contributors at the pop-up sessions discussed these ideas with Councillors and Council staff.

The online consultation was conducted via the Council’s online engagement tool, “YourSay” www.yoursay.orange.nsw.gov.au. The engagement tool launched the campaign with the theme of “Where to next?”

The community was invited to add their ideas, issues or comments to the online platform and were asked to:

· Show us on a map what you like about Orange and what you would change

· Float your bright ideas

· Tell us your story to show what you’d like to see happen in Orange

The face-to-face engagement ran between Saturday 3 February and Saturday 10 February, where Councillors and Orange City Council staff met with the community. Pop-ups stalls were located within the Orange Central Square shopping centre, the Orange Farmer’s Market and the Glenroi Community Centre.

Workshops were conducted for primary and high school children and the general community in the Council chambers. In all, almost 100 people attended the workshops and we gathered more than 2000 ideas from the face-to-face sessions.

A separate online tool was established to collect ideas and contributions from Council staff.

Detailed information about the engagement process and the results can be found in the attached “Engagement Report”. The key ideas and the process to develop the plan are detailed in the attached draft CSP.

Delivery/Operational Plan

The Delivery Plan must cover a four year period and is designed to illustrate the tasks that will deliver the objectives and strategies as depicted in the Community Strategic Plan.

The Operational Plan has to show the current year of the four years depicted in the Delivery Plan. Given the duplication of information, Orange City Council, like a number of other councils, has determined to combine the Delivery and Operational Plans into one document.

The attached draft Delivery/Operational Plan presents the first four years of the 10 year Long Term Financial Plan that is a required element in the Resourcing Strategy within the IP&R framework.

Many of the actions and performance measures in the existing Delivery/Operational Plan have been carried forward in the draft Delivery/Operational Plan. This is consistent with the outcomes of the “Where to Next” consultation where current initiatives and projects were supported but on occasions matched with there was some but delivering a higher level of service, a more accessible service or additional elements.

An example of this was the operation of the Aquatic Centre. “Where to Next” found the centre was well liked, however it could be more affordable and improved with the addition of a waterslide. Such initiatives would have significant impacts on operational and capital budgets.

The actions and performance measures in the new Delivery Operational plan will be reviewed over time to align with CSP.

Assumptions used in preparing the Delivery/Operational Plan are as follows:

· Rating increase as set by NSW Government –2.3%

· NSW Local Government Award salary increases – 2.5%

· Consumer Price index increment – 1.8%

· Water charges – increase 3%

· Sewer charges – increase 3%

· Superannuation – increase as per required – 9.5%

· Continuation of budgeting of Financial Assistance Grant

Resourcing Strategy

The documents required in the Resourcing Strategy are attached to this report.

The Resourcing Strategy must include:

· Workforce Management Plan

· Assets Management Plan

· Long Term Financial Plan

The Asset Management Policy has been reviewed with minor formatting changes made. The Asset Management Strategy provides a high level analysis and summary of the Council’s assets management philosophy. To continue the alignment between the assets and financial information, the Strategy and associated Asset Management Plans will remain in draft until the Council has formally adopted the budget in the Delivery/Operational Plan. This approach will ensure the finalised versions of the Assets Management Strategy and the associated Plans reflect the actual allocation of funding as approved by Council for asset maintenance and renewals when it adopts the Delivery/Operational Plan which incorporates the budget.

The Long Term Financial Plan covers a ten year span as required. It provides draft budgets for the full ten years covered by the Plan and is the starting point for the Council’s consideration of budgets each time they are reviewed. The financial information in years 1-4 of the Plan are used to create the four year Delivery/Operational Plan.

The Workforce Management Plan is required to be a rolling four year plan. It considers workplace issues such as succession planning, training, staff sentiment and the workforce profile in order to provide input into the structure and management of the Council’s operations.

Resolutions referred to Delivery/Operational Plan

During the current financial year a number of matters were raised by Councillors or put forward in reports for budget consideration.

These included:

Resolution	Staff Comment
Banjo Patterson Park be developed over the next five years with funding contribution of donations supplemented by amounts determined by Council in the Delivery/Operational Plan.	Not included at this stage.
That the design and costing for the implementation of recommendations by the Canobolas Local Area Command Safety Audit Reports for Moulder Park, Elephant Park and Cook Park be undertaken and that the cost for the implementation of the recommendations be included in the considerations for the 2018/2019 Delivery/Operational Plan.	Not included at this stage - $95k estimate. To be considered at quarterly review.
That an amount of $5000 per quarter be provided for emergent funding requests for donations and that Council consider a budget process which allows for emergent funding requests, as well as allocated amounts, in the 2018/19 budget process.	Included.
That Council consider the installation of a hearing loop system in the Council Chamber as part of the next Delivery/Operational Plan.	Not included – to be considered when carpet is due for replacement or alternatively to be considered at quarterly review.
That the Draft Fees and Charges for Children’s Services be increased to recover the loss of funding as a component of Council’s Delivery/Operational Plan 2018/22 process and that should Government funding be obtained, the child care fees be adjusted accordingly to reflect an overall breakeven point for the provision of Children’s Services.	Awaiting funding application outcomes.
That Council consider in the next Delivery/Operational Plan a donation to the Orange and District Historical Society for the purchase of a device to digitise their photographic negatives.	Not included at this stage. Cost estimate $25k. To be considered at quarterly review.
That Council allocate $20,000 in its 2018/2019 Delivery/Operational Plan to secure the My Market Menu event in Orange.	Included.
That Council consider allocating funds in the next Delivery/Operational Plan for decorations to celebrate Christmas in the City.	Included. $25k estimate.

Separate to this was a Council resolution to establish rest stops east and west of the City. The resolution was to build them rather than refer them to the Delivery/Operational Plan. The rest areas are to include:

· a toilet block with disabled toilet including security lighting

· space for caravans and RVs to stop

· picnic area including BBQ’s with shaded seats and garbage bins

· a children’s play area

· a large sign including a map of Orange and visitor attractions

It was resolved that Council seek State and Federal Government funding for these rest stops.

A preliminary cost assessment has been undertaken. The establishment of the rest stop east of the city in the vicinity of the Redmond Place driver reviver is in the order of $670,000.

The establishment west of the city is significantly more in the order of $1.55 million as land purchase would be required.

For the purposes of formulating a draft budget $40,000 has been included for the purpose of developing a detailed design for the eastern site which could then be used for grant applications and tenders. Grant funding is an appropriate source for this project as there is a role for other levels of government to fund services for those travelling through the city and the Central West. It is suggested that the western rest stop be revisited in subsequent budgets.

At a Council meeting in December last year it was resolved that the issue of waste collection (including bulky waste) be included in the Community Strategic Plan consultation process.

The matter of bulky waste pick-ups was a common issue raised during the “Where to Next?” consultation.

The 10 year domestic waste and recycling contract commenced 4 April 2016.

Two options for provision of a residential bulky waste collection contract were considered by Council:

· Option 1 - Provision of a scheduled service (one service per annum) with a tendered service rate of $6.9839 (GST exclusive amount) per assessment.

· Option 2 - Provision of a “user-pay” service limited to one service/residence/month with a tendered service rate of $187.50 (GST exclusive amount). This was the Council adopted and preferred bulky waste service option. The 2017/18 service cost is $212.50 (GST inclusive amount) following application of CPI increases from the year of tender.

Under the previous 10 year service contract, Council allowed for one bulky waste service and one organics service. This changed to two bulky waste services per annum when the kerbside organics collection service commenced on 1 July 2013 as an interim arrangement prior to commencing the current contract in 2016.

The bulky waste services have been poorly utilised by the residents with average presentation rates fluctuating between 5 and 17%. Aside from the poor presentation rate, some residents chose not to comply with the advertised collection period and continued to leave waste at the kerb well beyond the two week collection period.

Imposing the cost of a service across the entire rate base which has poor uptake was not deemed equitable at the time of considering the waste service tender.

A bulky wast pick-up has not been included in the plan.

Financial Implications

A reintroduction of one scheduled bulky waste collection service across the entire rate base would require renegotiation of the contract with J R Richards and Sons with likely increased costs above the original tendered rate due to the contractor needing to acquire additional resources not factored into the current contract.

There is a legislative requirement (Local Government Act cl 504) that waste services be fully self-funding. Explicitly, Council can not apply income received from ordinary rates towards the cost of the provision of waste services and must fund waste services from annual charges levied specifically for the purpose of the waste services offered.

This would mean the services would need to be added to waste charges levied on ratepayers. Any change to fees and charges must be placed on public exhibition with a report on any submissions presented to Council at the conclusion of the advertising period.

Key projects and co-funding

In March 2018, Council considered a staff report on Grant Funding and Project Priorities resolving as follows:

RESOLVED - 18/001 Cr G Taylor/Cr R Kidd

That Council note this report and note the grant submissions recently put forward to the State and Federal Governments and endorse the suggested project priority list

This report identified a funding framework which has increased in specificity, complexity and changeability over time, along with some rich grant opportunities in the short term. A key project priority of the following was established:

· CBD renewal and upgrade

· Southern Link Road

· Northern Distributor/William Maker Drive realignment

· Specific criteria programs such as Cultural projects such as Conservatorium and such as Economic Development projects such as Airport security/parking

· Sports Project arising from current review

A summary of co-funding is provided below:

Summary by Fund	Proposed 2018/2019	Funding	Net Cost to Council
General	62,533,718	(56,751,572)	5,782,146
Water	6,532,749	(2,727,870)	3,804,879
Sewer	2,770,392	(938,702)	1,831,690
	71,836,859	(60,418,144)	11,418,715

Councillor initiatives

Councillors were asked to provide feedback on initiatives for consideration in the delivery operational plan.

To date the following has been received:

Councillor initiatives	Staff comment
Increased Councillor visibility and consultation with community.	Consider as part of communications strategy.
Orange as Australia’s Healthiest City Initiative - a longer term program, with basic scoping in the year 1. Aligns with economic development in health sector but also creates opportunities to reduce costs of services through healthy population.	Not included at this stage. Consider at quarterly review if needed with staff to undertake preliminary scoping.
Support for women in leadership in Council including staff to attend ALGWA or similar conferences to build capacity	Consider within staff training budget for relevant staff.
Capacity building exercise to support for clubs/associations/community groups, particularly around budget submissions and procedures for grants.	$20K - subject of a Building Better Regions Fund application
Purchase Electrolux site and build a state of the art “waste to energy” plant.	Not included at this stage.
A transport forum to promote the need for improved public transport links and services to Sydney and within Orange.	Not included at this stage. Approximately $5k.
A reach mower for ditches and verges.	Able to hire under current arrangements. Plan to establish program and evaluate use of reach mower.
City beautification - Lucknow (trees etc.) and entrances into Orange.	$65k for Lucknow in capital projects list
Grants to organisations - no interest loans, low interest loans and free grants.	Grants and donations are dealt with later in this report.
Guidelines and compliance requirements.	Plan to evaluate on a needs basis and consider at quarterly review.
Waste management contract JR Richards.	See page 24.
CBD revitalisation with Smarter Cities and the “Last mile”.	CBD upgrade included.
Cultural Centre maintenance and upgrades.	Priorities finalised during exhibition.

Separate to the above Council has also received a submission from the City of Orange Brass Band seeking support that needs to be assessed and considered at quarterly review.

CSP Initiatives

The aim of the CSP was to identify themes and high order objectives for the Orange community and then match services to those objectives.

An example of how this works is as follows:

Separate to this there were numerous projects and initiatives raised through Where to Next as follows:

Initiatives

· Aboriginal monument recognising history in the region

· Need for bubblers for homeless people

· Truck stop on distributor road

· Creative space for artist

· Interesting sculptures / public art

· Council/Community run farming venture on that land that was purchased for the airport industrial park

· Upgrade cultural centre, senior citizens centre

· Aviation business hub at Airport

· Entrance and welcome sign for Spring Hill

· James Sheahan crossing

· Tesla charging stations

· Southern Distributor – priority

· Curb and guttering for Spring Hill

· Incubators to encourage entrepreneurial space

· Consider a hospitality school that provides skills to school-leavers

· Men's shed for youth - will feel more accessible if designed just for youth

· Subsidised rents to attract business

· Gutters in some parts of Orange – not suitable for caravans or trailers, dangerous for people with wheelchairs, prams or motorised devices

· Upgrade Cultural Centre

· Peisley Street overpass

· Control elm beetle

· Better access for wheelchairs, motorized devices and prams

· Upgrade the Function Centre – don’t build a new one

· Dedicated art and cultural centre

· Spring Hill Heritage Festival

· More parking for RVs and caravans

· Youth Centre

· Voucher system for kids that do something for the community – reward with movies/games

· Roads need improving including Forbes Road, road past Ploughman’s Lane, the road to the Lake

· Car spaces in Woolworths carpark – too small for wheelchairs and prams

· Stop demolition of heritage cottages

· Assist volunteers to help the community

· Purpose built community facility in the CBD –for the aged and other groups

· Upgrade the senior citizens and cultural centre

· Improvements to men’s shed facility at Lucknow

· Build the Planetarium and Regional Conservatorium of Music in area north of Library

· Museum needs more space at the front of the building

· Space for a community garden

· Innovation centre – place to pitch ideas

· More rail crossings to reduce bottlenecks

· Toy Library

· Fix second crossing on Ophir Road

Levels of service

· Improve the standard of the roads

· Bins and poo bags at Botanic Garden

· Expand the Banjo Patterson festival

· Waste:

• Red bins (both weekly and fortnightly)

• Smaller red bin

• Bulky waste pickup reinstated

• Two free Green Waste pickups per year

• Increase frequency around Christmas

• E-Waste disposal centre

• Public bins should have recycle ones next to them

• Better recycling

• More recycling bins

· Northern Distributor needs work

· More activities at the pool

· Maintenance on roads

· Cleaner public toilets

· Bigger allocation of the budget for parks

· More and improved cycle and walking paths

· More recreational and gym equipment at Lake

· Improve road markings

· No patching of footpaths; need complete replacement

· Street signage upgrade

· Upgrade Peisley Street to welcome visitors from trains and coaches.

· Five Ways entry needs a complete clean up required

· Upgrade Somerset Park

· Elephant Park needs some maintenance

· Cook Park needs a significant revamp – more maintenance and more plantings

· Better maintenance of cricket nets

Fees and charges

· Development and Contribution fees are too high

· Rates are too high

· Pool is too expensive

· Lower the tip fees to reduce dumping

· Reduce DA fees

Other agencies/organisations/tiers of government

· Yearly restock of fish in Lake Canobolas

· Safety cameras on roads

· Walking trails on Mount Canobolas

· Ban plastic bags

· Nappy laundering service

· Homes for the less fortunate

· Better public transport, frequency, timetable

· Better pruning of trees around power lines

· Soup kitchen

· Women’s refuge

· We need to improve the look and feel of the top of Mount Canobolas

· Waratahs sporting facility needs a clubhouse and new touch facilities

· Encourage use of electric cars with re-charging stations

· Motorbike track

· Improvements to Foodcare include lining up in shade and the use of toilets while waiting

· Foodcare should be expanded as an additional day, or in a different location (e.g. Central Orange for easier access)

· Better control of feral animals

CBD

· Coloured lights in CBD – fix and expand

· Multi storey carpark

· Forecourt/Mall/Outdoor shady rest area in CBD

· Water bubblers and water refill stations around the City

· Free Wi-Fi in the CBD

· Improve look and feel of CBD to attract more shoppers and retailers

· Pedestrian Mall - Anson Street

· More covered car parking – solar panels to offset costs

· More all day parking near the CBD for workers

· Encourage shop owners to revamp

· Pedestrian Mall

· Concrete footpaths in central part of Orange

· More seats in the streets

Recreation

· Recreational water sports at Suma Dam, Gosling Creek, Lake Canobolas, Spring Creek Reservoir, Zip lining, more beaches

· Pool waterslides

· Skate Park in North Orange

· Indoor kart centre

· Road racing track, drag racing, karts, car events

· Increase the number and maintain the standard of walking and cycle paths throughout the City

· Improve BBQs at Lake

· Indoor play centre/sports – perhaps at Bunnings

· More netball courts

· Adventure playground needs maintenance

· Open Gnoo Blas- racing track, burnout pad

· Need a public water play area (similar to Dubbo)

· Fenced playground for safety

· Investment needed in netball courts

· Wade Park upgrade

· BMX track

· Equestrian facilities

· Water slides

· Hockey – outdoor field and indoor centre

· Athletics track

· Rock climbing wall

· Mountain bike trail

· Football stadium

· Ice skating rink

· Water sports

· Paintball

· Bowling

· More playgrounds

· More places for fishing

· Parks for older kids

· Events for a teenage market

· Parks for wildlife

· Ninja-style obstacle course

· Football stadium, AFL, Rugby Union, Soccer

· Ice skating rink

· Mount Canobolas – bob sled

· Paintball

· Bowling

· Attract big name games here e.g. NRL, A League

· Gaming hub

· Shade sails over playgrounds

· Extend the fencing at the Anson St skate park to include the small children's area for safety

· Improve the showground

· Better and more bush walking tracks

· A fully fenced playground to allow children with disabilities to explore in a safe environment to prevent them from leaving the playground.

· Festival that isn’t food and wine

· Old netball court area could be developed as a cycle course such as Alexandria

· Full basketball court for East Orange

· Exercise stations in all areas of Orange

· Outdoor pool needs a cover to allow winter swimming

· Cycling tourism

· Poets Park

· New park in North Orange

· Reshape Wade Park – grandstand on both sides

· All weather athletics carnival

· Major Sporting Complex – rectangular fields

· Dragon Boats on Spring Creek Dam

· Build a central sporting facility similar to Mudgee

· Provide more support for events coming to town

· A "Youth Hub" for sport, health and support services – the whole community can access

· Local space for youth

· Parks for older kids

· Need activities in East Orange to keep kids occupied

Sustainability

· Plant trees and earn carbon credits

· Council lighting changed to LED

· More solar panels

· Islands for birds in the wetlands

· Water sensitive design for new developments

· Alternatives in the city for bottled water

· Water tank subsidy

· Community permaculture farms

There were numerous projects listed during the consultation but have not been included in the above as the projects and initiatives are well advanced or on the already on the agenda such as a new Council website, Forest Road, Southern Feeder Road and Dairy Creek Road upgrades and improved Christmas lights. Additionally, expanded recreational activities on waterways was also raised but is already a resolution of Council. Other matters such as rainwater tanks in new suburbs and footpaths in new suburbs are already dealt with under BASIX or Council policy.

As mentioned earlier in this report one of the challenges in developing the draft CSP is that it does raise significant expectations as the volume of projects and initiatives often outstrips the resources, finances and jurisdiction of Orange City Council.

These projects will be further assessed and where appropriate considered for future budgets or quarterly reviews.

Summary of key areas in the Delivery/Operational Plan 2018/19 – 2021/22

Council’s assets have been assessed to have a value of over $1.21 billion (as at June 2017).

Council has an existing external loan portfolio of $24 million, with the average interest rate of all loans being 4.49%

Tables in this report include the current financial year (2017/18) original budget as adopted in the current Delivery/Operational Plan.

2018/19 operating position

The draft Delivery/Operational Plan proposes a surplus consolidated operating position (before capital) of $2,849,246 for 2018/19.

The operating position shows how Council proposes to expend money on items other than those classified as capital.

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)
	2017/2018 Adopted Original	2018/2019 Proposed	2019/2020 Proposed	2020/2021 Proposed	2021/2022 Proposed
General Fund	(290,735)	(176,399)	(104,946)	(399,177)	(1,008,230)
Water Fund	(1,130,292)	(1,534,290)	(1,725,414)	(1,925,026)	(2,114,236)
Sewer Fund	(441,768)	(1,138,557)	(1,565,090)	(1,697,291)	(1,785,828)
Total (All Funds)	(1,862,795)	(2,849,246)	(3,395,450)	(4,021,494)	(4,908,294)

An ongoing positive operating position is considered an essential indicator of financial robustness of a going concern. The operating expenditure is Council’s year to year expenditure on providing services and maintaining assets. Asset renewal and the creation of new Council assets, for example new roads, is capital expenditure.

Council’s operating position has been impacted by rises in some areas well above the afforded 1.8%. These include significant additional costs in areas such electricity and extra demands from superannuation schemes. Council has made significant savings through recent market testing of insurances however these have been eroded through other rising costs and some additional costs are planned in supporting companion animal management due to rising workloads in this area. The combination of these factors has resulted in a low level operating surplus in the General Fund and a moderate level of surplus in the utility funds.

Operational outcomes in 2018/19 include the following:

· Council will provide airport services for 40,000+ passengers per annum

· Approximately 18,700 domestic and commercial waste services collected on a weekly basis. Over 50% of the Orange waste stream is diverted from landfill per annum.

· Manage the Aquatic Centre servicing over 15,000 people per month

· Produce business papers for two Council meetings per month

· Engage with community members through the community committee meetings held either monthly or quarterly

· Maintain four child care centres at 80% occupancy

· Offer 24 x 7 customer service phone lines and web reporting tool for continuous customer support

· Maintain Council’s online presence with at least weekly updates to the website and through media releases

· Continue the social media activities of Council with engagement levels in excess of 100,000 people

· Manage tourist services for the 80,000 visitors per year to the Visitor Information Centre plus an estimated 20,000 further contacts via emails and phone calls

· In-house printing and design of most publications to maximise the use of skills and equipment

· Undertake a minimum of 400 private property inspections to manage noxious weeds

· Maintain the 3 star rating for the caravan park and achieve 50% occupancy

· Maintain an electronic directory of businesses in the City to assist in providing local businesses with information

· Continue additional $100k for parks and gardens operations established in 2017/18

Capital position

The capital budget will deliver projects with a combined total of $71.8M in 2018/19. This expenditure is distributed across the funds and the expenditure levels over the subsequent three years are also shown:

Fund	2017/18	2018/19	2019/20	2020/21	2021/22
General	$28,337,024	$ 62,533,718	$ 32,767,968	$ 35,134,085	$ 12,199,753
Water	$10,873,997	$ 6,532,749	$ 5,224,116	$ 2,783,964	$ 1,832,715
Sewer	$ 5,297,670	$ 2,770,392	$ 4,368,820	$ 6,753,110	$ 3,091,860
Consolidated	$44,508,691	$ 71,836,859	$ 42,360,904	$ 44,671,159	$ 17,124,328

Key capital projects are listed later in the report and the full program in the attached draft Delivery/Operational Plan.

Funding Sources

Funding for the projects Council is proposing comes from Council’s own funds, grants and loans. Council has already approved in previous years the following external loans:

LOANS - PRINCIPAL OUTSTANDING AS AT 17 APRIL 2018
Cost centres	Loan No.	Institution	Loan Amount ($)	Drawn Down	Interest Rate	Term (yrs)	Principal Outstanding ($)
Anzac Park/Distributor Road	4000	NAB	7,000,000	Sep-09	4.65%	10	1,313,577
Airport Expansion	4001	NAB	3,000,000	Nov-12	5.48%	10	1,701,545
Regional Waste Facility	6000	ANZ	8,000,000	Nov-12	5.96%	20	6,778,840
Southern Feeder Road/ Airport Expansion	4002	NAB	4,641,000	May-15	3.58%	10	3,421,832
Southern Suburb (LIRS Program)	4003	NAB	7,700,000	May-15	3.91%	10	5,696,001
Accelerated Roads Program	4004	NAB	3,000,000	May-16	3.24%	10	2,613,085
Accelerated Roads Program 16/17	7001	CBA	2,640,000	May-17	3.25%	10	2,466,730
		TOTAL	$35,981,000	LOAN PRINCIPAL OUTSTANDING			$23,991,610

The table below provides details of internal loans utilised by Orange City Council

Borrower (by purpose)	Lender (by purpose)	Purpose of Loan	Date of Ministerial Approval	Loan Amount ($)	Drawn Down	Interest Rate	Term (yrs)	Additional Comments	Principal Outstanding ($)
Water	Sewer	Construction of the Macquarie Pipeline	13/10/10	8,166,000	Jun-15	2%	20	Interest only over term of loan with balloon payment of principal in 2035	8,166,000
General	Sewer	Construction of 24 hour Emergency Helicopter Hangar	16/11/16	3,300,000	Jun-16	2%	24	Interest and principal	3,191,525
General	Sewer	Purchase of properties within the Orange Airport Industrial and Technology Park precinct	22/06/17	2,493,000	Jun-17	2%	10	Interest and principal	2,493,000
			TOTAL	$13,959,000		LOAN PRINCIPAL OUTSTANDING			$13,850,525

Loan funding – proposed

The funding sources for the LTFP anticipates additional funding required for the following purpose:

· 2017/18 $2.6 million Roads Acceleration program

· 2018/19 $6.5 million Roads Acceleration program

· 2018/19 $6 million CBD project and new animal shelter

· 2019/20 $4.5 million CBD project

Asset renewal

The Asset Management Strategy illustrates the basis for the modelling done to maintain and improved Council’s assets. The following figure provides an indication of the total annual expenditure for all asset categories in each of the major program areas together with the backlog that is expected in any one year based on the currently available funding. Details are provided in the Asset Management Strategy.

Once the budget is adopted the Asset Management Strategy will be updated.

Forecast Expenditure and over the next 10 years:

Capital program – major projects

A summary of the major capital projects is provided in this section and a full list of capital expenditure is included in the financial summary section of the attached Delivery/Operational Plan.

Over the four years of the Delivery/Operational Plan a total capital spend of $172.4 million is proposed.

The major projects budgeted to commence in 2018/19 are as follows, noting that some projects are subject to securing funding and some are to be delivered over a number of years:

· CBD upscale and renewal - $15.35 million (Part of a 2 year $30 million with the entire project pitched at leveraging $10 million in Council funding)

· Civic Centre air conditioning chiller replacement - $550k

· Airport security and passenger enhancement - $2.28 million

· Scout camp development - $850k ($1.85 million in total)

· Gallery extension - $4 million

· Rosewood Oval training lights - $240k

· Sir Jack Brabham Park playground, amenities and community building - $0.81 million

· Cricket Centre of excellence – $1.97 million (plus leverage for expanded project)

· New animal shelter - $1.5 million

· RMS Cycleway funded program - $100k

· Aquatic Centre female change rooms - $130k

· Showground – toilet tiling, Dalton Pavilion roof and arena fencing - $300k

· Roads reseal and gravel program – $1.02 million

· Road rehabilitation program - $560k

· Roads to recovery program - $500k

· Southern Feeder Road - $17.83 million

· Cargo Road various upgrades - $1.76 million

· NDR William Maker Drive roundabout - $4.6 million

· Expanded footpath rehabilitation program $350k

· Traffic facilities - $220k

· Lucknow projects - $65k

· Forest Rd upgrades continued from 2017/18 - $1.6 million

· Waratah Stage 6 stormwater - $200k

· Robertson Park stormwater channel renewal - $150k

· Stormwater Infrastructure renewals - $70k

· Waste services works and improvements - $160k

· Water service renewals - $130k

· Meter replacements - $200k

· Water mains extension/realignment program – $300k

· CBD Water mains realignment - $250k

· Water mains renewal program - $800k

· Blackman’s Swamp rehabilitation Stage 1 - $330k

· Icely Road WTP Lagoon upgrade - $50k

· Icely Road WTP telemetry upgrade - $30k

· Icely Road WTP land acquisition - $1.1 million

· Icely Road WTP site security - $50k

· Lake Canobolas water reticulation - $290k ($640k in total)

· Reservoir tank mixers – $300k

· Manhole renewals - $100k

· Orange STP sludge lagoon upgrade - $6o0k

· STP inlet works upgrade - $300k ($4.3 million in total)

· South Orange – stage 1 sewer works - $370k

· Phillip Street DCP - $100k

· Spring Hill Lucknow sewer strategy - $80k

· Sewer reconstructions renewals program - $100k

· Sewer relining program - $700k

CBD Renewal and Expansion/Upgrade Project

The CBD project has been prevalent in CSP consultation, Council and staff consideration and has been identified in previous delivery plans at a project level of $15 million, over 3 x $5 million tranches over 10 years. The CBD project is scalable - $15 million will partially complete the project delivery.

The CBD project has been identified as a higher priority project in consideration of the draft Delivery Plan.

Given feedback on funding opportunities/programs, particularly in some programs, where projects of a minimum value of $20 million are considered, the scalable nature of the CBD project and the limited ability to pitch projects which run over more than 2 years, it is suggested in the first instance that the CBD be pitched as a 3 tier, $30 million project over 2 years. This would enable scaling to a $20 million project should Council be unsuccessful with either other tier of Government, but still enable consideration for larger grant programs requiring a minimum $20 million project.

Key Projects and co-funding

A number of projects are included which rely on grants and co-funding. Some of these include:

· CBD 18/19 and 19/20

· SFR - stage 2 in 18/19 and other stages in later years

· William Maker/NDR roundabout 18/19

· Wade Park

· Sports projects over several years

· Conservatorium

· Scout Camp

· MTB design and documentation (upon amended Mt Canobolas Management Plan) with a view to pursue grant funding for construction

While not assured of other funding these projects are included to drive greater value for leverage funding provided by Council.

Partial Funding of Grant Applications

In recent years, Council has received only partial funding of grant applications from funding authorities in some cases. Examples include the Forest Road/Bloomfield Precinct project and the SFR Stage 2 project.

This can leave Council in the difficult position of seeking more grants, which in some cases do not come to fruition and leave Council with the option of either using more Council source funding to complete the project with the corollary knock-on effect on remaining funds.

Contingent Funding Approach and Proposed Loans

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 very good 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 lift.

In this regard the draft Delivery Plan proposes loans towards a major co-funded project and coverage of some of the exposure to partial funding through loan capacity and or reserves. Additionally, should a project not eventuate which relies upon co-funding then it releases Council’s component of the project.

Income in 2018/19

A summary of the major areas of income is provided below with a total income of $139.6 million projected for the year.

Fees and charges are listed as a specific section in the attached Delivery/Operational Plan.

Assumptions used in projecting this income are:

· The majority of fees and charges have been increased by 1.8% in the 2018/19 year. Those fees that increased by an amount other than 1.8% generally fall into one of the following categories:

o The fee has been set by specific statutory or legislative requirement, and Council is obliged to implement the new fee or charge

o The increased cost of providing the service or good has exceeded 1.8%

· The 2.3% rate peg only applies to General Rates (Residential, Business, Farmland). The 2018/2019 levy for General rates will be approx. $33 million.

· Residential sewer charges, waste charges & the stormwater levy are not pegged but Council has to be able to show that the charge is based on the reasonable cost of providing the service. For 2018/2019 Council has previously resolved that residential sewer charges will increase by 3%. Waste charges will increase 1.8% based on the CPI increase. There is no increase in the stormwater levy as Council is charging the maximum permissible. The levy for these combined charges will be approx. $15.5 million so the total levy in July will be about $48.5 million.

· For an average residential assessment the increase from the rate peg is $32.91. The increase including all charges is $55.08 (2.41%) or $1.06 per week.

· An average business assessment will increase $113.58 or $2.18 per week.

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

· Increases in water and sewer fees and charges are:

Fund	2017/18	2018/19	2019/20	2020/21	2021/22
Water	3%	3%	3%	3%	3%
Sewer	3%	3%	3%	3%	3%

· Council has responded to the China Sword Policy and consequent ramifications on recycling operations impacted both domestically and on a global scale through applying pressure to the State Government to support it with interim funding and assistance via a one-off $47 million assistance package. Financial assistance is capped at $75.00/tonne and only available up to a four month period ending 31 August 2018. The package provides a range of short, medium and long term initiatives to ensure kerbside recycling continues and to promote industry innovation. Orange City Council and other effected NetWaste Councils will be making application to access this funding as a short gap measure to offset extra processing costs by the contractor Visy Recycling and to develop a regional strategic plan which is a requirement of the relief funding package. The extra processing costs, Strategic Plan development costs and legal costs associated with amending the current recycling and collection contract will be paid for by this funding, however, this is only available for up to a four month period and ongoing additional processing costs of $60.00/tonne will have to be met through a necessary increase on the domestic recycling charge. This will be considered separately as part of the budget delivery process to be presented to Council.

· User fees and charges contribute $34.5 million.

· Pensioners receive a reduction in their rates of 55%. Council offers additional pensioner rebate subject to two criteria. The two elements require that a property was owned prior to 1 July 2006 and that the owner was an eligible pensioner prior to 1 July 2006. If both criteria are met, Council offers a further 10% rebate on Rates and Domestic Waste Charges on top of the 55%. If the pensioner who is eligible to receive the 10% additional rebate sells the property, they will continue to get the 10% if they occupy the house within a reasonable timeframe after purchase. If either of the criteria aren’t satisfied, Council still offers a 5% voluntary rebate on top of the 55% rebate. The additional voluntary rebate costs Council around $350,000 per annum.

· Grant income in 2018/19 is expected to total $48.3 million.

· Contributions from developers are budgeted at $4.5 million for 2018/19.

Expenditure in 2017/18

Total operating expenditure is $96.3 million in 2018/19 across all funds.

Major areas of expenditure in 2018/19 include:

· Employee costs - $38.4 million inclusive of a 2.5% Award based increase

· Materials and contracts - $27.7 million

· Depreciation - $17.8 million

Donations

The only avenue for Council to assist other organisations financially is in accordance with Section 356 of the Local Government Act. Where the organisation is operating for its own financial benefit, Council must advertise any offer of financial assistance to seek community comment.

In December 2017, Council wrote to all applicants (not just successful applicants) who have sought a donation or sponsorship over the past three years encouraging them to make application for donations as part of the budget process. Council has also run advertisements and had information on the Council website on the donations and sponsorship processes. Attached to the report is a summary sheet of all applications received by the due date. Councillors have been supplied with full copies of all applications under separate cover.

The proposed donations allocations for all donations areas over the four years in the draft Delivery/Operational Plan are shown below.

Category	2018/19	Balance after below tables	2019/20	2020/21	2021/22
General Donations	60,000	25,185	60,000	60,000	60,000
Sports Facility grants	50,000	Nil	50,000	50,000	50,000
Sports Participation program	13,900	10,859	13,900	13,900	13,900
Sponsorships/major promotions/events	32,503	Nil	33,088	33,684	34,920
Donation to Orange Harness Racing	20,000	Nil	20,000	20,000	20,000
Emergent funding requests	20,000	20,000	20,000	20,000	20,000

Council received 67 applications for donations and sponsorships.

It should be noted that funding also flows to in region events via the tourism services contract. The tourism services contract monies have been preserved in the budget with an allocation of $400K per annum.

Council has received the below requests for financial assistance of:

General Donations of $34,814.25

Ref	Applicant	Description	Request Cash	Request In-kind	Recommend Current Policy	Recommend Draft Policy
1	Bowen Community Technology Centre	Free technology and practical support for students and for adults	$3,000.00	$Nil	$200.00	$1,500.00
2	Canobolas Highland Pipe Band	Performances at community events	$1,500.00	$Nil	$200.00	$1,500.00
3	Cantar Inc	Combined Choir Charity Concert - September 2018	$500.00	$Nil	$200.00	$500.00
4	Come Together Choir	Purchase equipment (chairs used on stage during performances and function seating)	$3,000.00	$Nil	$200.00	$1,500.00
5	Epilepsy Support Group Central West	Epilepsy nurse	$5,000.00	$Nil	$200.00	$1,500.00
6	Fusion Australia Ltd	Fusion Community Centre (a place of rest and relaxation open to the public)	$3,000.00	$Nil	$200.00	$1,500.00
7	Glenroi Community Group	Sporting events, social outings, RSPCA health checks, vaccinations and community contact through schools and media	$3,000.00	$Nil	$200.00	$1,500.00
8	History Council of NSW	Orange Readers and Writers Festival 2018 - 28 July 2018	$1,000.00	$Nil	$200.00	$1,000.00
9	Mid-Western Consumer Advisory Group - The O'Brien Centre	Disabled toilet	$1,500.00	$Nil	$200.00	$1,500.00
10	Orange and District Early Education Program (ODEEP)	Purchase of specialised equipment for children with a disability (loan library items to test suitability for their own child's use)	$2,500.00	$Nil	$200.00	$1,500.00
11	Orange and District Softball Association	Portable temporary disabled toilet for 2018/19 softball season	$2,156.00	$Nil	Decline	Decline
12	Orange Aero Club	Ongoing maintenance and upkeep Aero Medical Exchange Facility	$5,000.00	$Nil	$200.00	$1,500.00
13	Orange Parkinson Support Group	Orange Parkinson's Support Group luncheon 2018	$600.00	$Nil	$200.00	$600.00
14	Orange Society of Model Engineers	Miniature railway in Matthews Park - relocate existing pedestrian warning signs and labyrinth on the pathway on the western side	$1,000.00	$Nil	$200.00	$1,000.00
15	Orange Theatre Company Inc	Costume storage racks	$5,000.00	$Nil	Decline	Decline
16	Orange War Widows' Guild Social Club	Lunches and other social outings for members	$500.00	$Nil	$200.00	$500.00
17	Orange Woodworkers Association	Purchase of equipment (band saw)	$3,000.00	$Nil	$200.00	$1,500.00
18	Spring Hill and Surrounding Districts Consultative Committee	Short educational sessions (aquifer and water catchment areas for Spring Hill/Huntley and wider area)	$200.00	$Nil	$200.00	$200.00
19	The Shepherd Centre (for Deaf Children)	Sing and Grow Music Therapy Program	$3,000.00	$Nil	$200.00	$1,500.00
20	St Vincent de Paul Society	Vinnies Van and Cafe special works	$3,000.00	$Nil	$200.00	$2,000.00
21	City of Orange Eisteddfod Society	Prize giving - Junior Pianoforte Scholarship	$600.00	$Nil	$200.00	$600.00
22	Country Women's Association of NSW - Central Western Group	2019 Schools Public Speaking Competition	$200.00	$Nil	$200.00	$200.00
23	Calare Public School	School Presentation Day 2018 - Orange Function Centre	$1,175.00	$Nil	$500.00	$881.25
24	Canobolas Cottage Inc (t/a Ronald McDonald House Orange)	Annual Ball 2018 (Carnivale - Under the Big Top) (request for a fee reduction)	$2,000.00	$Nil	$500.00	$750.00
25	Orange Legacy Club	Legacy Week 2018 - Banners in Summer and Anson Streets (request for a fee reduction)	$400.00	$Nil	$200.00	$400.00
26	Orange Schoolhouse Quilters	Rent assistance for Senior Citizens Centre usage (request for fee reduction)	$1,000.00	$Nil	$500.00	$750.00
27	Orange District Girl Guides	Rates reimbursement (365 Peisley Street)	$1,251.76	$Nil	$625.88	$940.00
28	Orange Preschool Kindergarten	Rates reimbursement (13 Moad Street)	$2,654.74	$Nil	$1,327.37	$1,993.00
29	City of Orange Brass Band	Rates reimbursement (62-64 Endsleigh Avenue)	$6,109.95	$Nil	$3,054.99	$2,000.00
30	Orange High School	School annual prize giving - Presentation Evening 2018	$200.00	$Nil	$200.00	$200.00
	All schools in Orange	Prize money for schools - available on application (20 less one x $200)	$4,000.00	$Nil	$3,800.00	$3,800.00
			$66,857.30	$Nil	$14,008.24	$34,814.25

Sports Participation Program donations of $3,041.00

	Applicant	Description	Request $ Cash	Request $ In-kind	Recommend $ Current Policy	Recommend $ Draft Policy
31	Orange and District Softball Association	Multiple Teams in One Sports Association (7 teams) - Softball - 2018 Regional Representation	$1,750.00	$Nil	$750.00	$750.00
32	Western Region Academy of Sport (WRAS)	Assisting athletes in Orange-based training sessions (per capita contribution)	$2,291.00	$Nil	$100.00	$2,291.00
			$4,041.00	$Nil	$850.00	$3,041.00

Event Sponsorship donations of $32,503.00

	Applicant	Description	Request $ Cash	Request $ In-kind	Recommend $ Current Policy	Recommend $ Draft Policy
33	Appledale Processors Co-Op	Orange Apple Ramble 2019 - 27 April 2019	$5,000.00	$Nil	$2,500.00	$1000.00
34	Australian National Field Days	Australian National Field Days	$5,000.00	$Nil	$2,500.00	$1500.00
35	Blue Heel Cloggers - Dancing With Bite!	Representing Orange at the Granny Smith Festival 2018 - Eastwood - October 2018	$2,000.00	$Nil	$1,000.00	Decline
36	Brooking, Rachael	Walk 4 Hope 2018 and Hunt 4 Redhead 2018 (fundraising events for Huntington's Disease)	$5,000.00	$327.80	Decline	Decline
37	City of Orange Eisteddfod	City of Orange Eisteddfod 2018 - receive $20,000.00 in reduced fees and charges each financial year	$21,500.00	$20,000.00	Decline	Decline
38	City of Orange Veterans Golf	Orange Golf Classic for Veterans 2019	$1,300.00	$Nil	$650.00	Decline
39	Dirt Lane Press	Publication and Launch of Book - "Leaf Stone Beetle"	$3,000.00	$Nil	$1,500.00	Decline
40	Food of Orange District Week	Food Week 2019 - 5-14 April 2019	$5,000.00	$Nil	$2,500.00	$1500. (Funding is also included in the TDO contract.)
41	Golf Orange (Orange Ex-Services' Club)	City of Orange Golf Championships 2018 - 29 September 2018 to 1 October 2018	$5,000.00	$Nil	$2,500.00	Decline
42	Leukaemia Foundation	Light the Night 2018	$2,000.00	$Nil	Decline	Decline
43	McCormack Barber Real Estate	New Year's Eve Fireworks (Party Under the Stars) 2018	$22,000.00	$Nil	$2,500.00	$10,000.00 plus $10,000*from city events.
44	Orange Colour City Running Festival Committee	Orange Running Festival 2019 - 23-24 February 2019	$1,500.00	$2,000.00	$1,750.00	$1500.00
45	Orange Eight Day Games	Orange Eight Days Games 2018	$3,000.00	$Nil	$1,500.00	Decline
46	Orange Farmers Markets Inc	The Chef's Table	$4,500.00	$Nil	$2,500.00	$1500.00
47	Orange Golf Club Limited	Annual Golf Tournaments (Veterans, Ladies, Men's and Classic) - October 2018 - January 2019	$5,000.00	$Nil	$2,500.00	Decline
48	Orange Harness Racing Club	Harness Race Meetings in February 2019 - receive $20,000.00 annually (10-year period 2016/17 to 2025/26 - Res No 16/476)	$5,000.00	$Nil	Decline	Decline
49	Orange Lions Club	Camel Races 2019	$5,000.00	$Nil	$2,500.00	$1500.00
50	Orange Region Vignerons' Association	Orange Wine Festival 2018 - 12-21 October 2018	$5,000.00	$684.50	$2,500.00	$1500 (Funding is also included in the TDO contract)
51	Orange Symphony Orchestra	Performances of Handel's Messiah - 23-25 November 2018	$5,000.00	$Nil	$5,000.00	Decline
52	Rotary Club of Orange	Banjo Paterson Australian Poetry Festival 2019 - receive free use of Theatre in fees and charges	$20,000.00	$5,000.00	$2,500.00	$10,000.00 (Funding is also included in the TDO contract)
53	Rotary Club of Orange Daybreak	Classic car food and wine event	$5,000.00	$240.00	$2,500.00	$1500.00
54	Rotary Club of Orange Daybreak	NSW Regional Technology Expo 2019 - 21-23 June 2019	$5,000.00	$5,000.00	$2,500.00	$2500.00 from economic development budget*
55	Rotary Club of Orange North	Lead the Way - fundraising concert for Guide Dogs NSW/ACT	$5,000.00	$1,800.00	Decline	Decline
56	Te Aria Foundation	Us Day in Roberts Park (to promote the development of the first suicide prevention plan for the Orange Region)	$5,000.00	309.50	$2,500.00	Decline
57	Wangarang Industries	Charity Golf Challenge 2019 - 1 February 2019	$3,000.00	$Nil	$1,500.00	$1500.00
58	Western NSW Skills Development Hub	Orange Jobs Expo 2018 - 8 November 2018 (fee reduction request)	$1,653,00	$Nil	Decline	Funded from economic development budget.
59	Willys Overland Club of Victoria	Overland 2018 (100th Anniversary) - from Sydney to Brisbane - 14‑19 October 2018	$5,000.00	$Nil	Decline	Decline
			$160,453.00	$15,034.00	$42,900.00	$45,500.00

* $12,500 added from Economic Development and City Events budgets

Sports facility grants $50,000.00

	Applicant	Description	Funding Requested	Recommended Funding
60	Orange CYMS Cricket Club	Construction of cricket practice nets at Norton Park (James Sheahan Catholic High School)	$15,000	$9,000
61	Orange PCYC	Replacement of the Sir Neville Howse Stadium scoreboards	$15,000	$9,000
62	Orange & District Softball Association	Extension of the existing canteen facility for storage	$5,000	$5,000
63	Orange Cycle & Triathlon Club	Construction of an equipment storage shed at Gosling Creek Reserve	$3,000	$3,000
64	Orange City Croquet Club	Extension of the existing Club House veranda to provide additional shelter	$1,700	$1,200
65	Orange Emus Rugby Club	Drainage upgrade on western side of main field at Orange Emus Rugby Club	$15,000	$13,000
66	Orange Little Athletics	Construction of long jump and triple jump pits and approaches	$7,000	$5,300
67	Spring Hill Recreation Ground Trust	Replacement and upgrade of synthetic cricket wicket at the Spring Hill Recreation Ground	$5,977 (exceeds 50% of project cost)	$4,500
		TOTAL	$67,677	$50,000

“Other” Expenses

Council is required to submit its accounts to the Office of Local Government in a prescribed format.

This format includes an item entitled “other expenses”. Council has identified it wants to have information that specifies what is included in the other expenses category. The following table provides the components of other expenses, and details that the expected increase in electricity charges has been offset by reductions in insurance premiums.

	Adopted 2017/18	Proposed 2018/19	Proposed 2019/20	Proposed 2020/21	Proposed 2021/22
Other Expenses
Telephone Charges	383,963	392,658	399,755	406,984	414,347
Insurance	1,454,687	889,927	905,945	922,253	938,851
Donations	61,500	60,000	60,000	60,000	60,000
Electricity Charges	3,676,272	4,127,547	4,206,348	4,286,653	4,368,499
Gas Charges	282,779	287,869	293,053	298,325	303,694
Mayor and Councillor Fees	270,612	279,316	284,343	289,462	294,672
Computer Leases	144,658	200,000	203,600	207,265	210,996
Regional Library Administration Fee	1,236,515	1,290,221	1,332,148	1,376,040	1,422,334
Other	110,251	112,149	114,077	128,042	118,042
Total Other Expenses	7,621,237	7,639,687	7,799,269	7,975,024	8,131,435

Council Meeting 15 May 2018

5.3 Quarterly Budget Review and Performance Indicators

RECORD NUMBER: 2018/1149

AUTHOR: Jason Cooke, Manager Financial Services

EXECUTIVE Summary

This report provides the third quarter review of the 2017/18-2020/21 Delivery/Operational Plan, as required under Section 403 of the Local Government Act 1993. This report illustrates the progress Council is making on the strategies and tasks identified in its strategic planning documents.

This report also provides a summary of Council’s financial position over the quarter. The Directions (Our City, Our Community, Our Economy, Our Environment) financial summary tables with the attached Performance Indicators and quarterly review documents have been reviewed and updated and include projects across all three funds (General, Water and Sewer).

Link To Delivery/OPerational Plan

Financial Implications

The Quarterly Review has identified variations totalling $676,148 to Council’s adopted budget. The effect of these variations results in Council’s projected year-end consolidated position moving to a surplus of $5,941,866 (from a surplus $6,618,014), including capital. While the overall surplus including capital has tightened, it is important to note that the operating surplus position remains above target, improving by $540,874, as demonstrated in Table 3 below.

Table 1 below presents Council’s projected year-end result by Direction as identified in the Community Strategic Plan and the Delivery/Operational Plan. It is important to note that all red bracketed numbers in Tables 1-3 below indicate a surplus result for Council.

Direction	Adopted Budget	Proposed Variations	Proposed Budget
Our City	(27,552,786)	38,300	(27,514,486)
Our Community	14,403,935	33,323	14,437,258
Our Economy	2,460,215	(192,000)	2,268,215
Our Environment	4,070,622	796,525	4,867,147
Total	(6,618,014)	676,148	(5,941,866)

Table 1: Projected year-end position by Direction

Table 2 presents Council’s projected year-end result by Fund, showing Cost to Council (which includes capital expenditure, capital income and funding).

Fund	Adopted Budget	Proposed Variations	Proposed Budget
General	(1,291,545)	(151,190)	(1,442,735)
Water	(2,904,441)	(645,156)	(3,549,597)
Sewer	(2,422,028)	1,472,494	(949,534)
Total	(6,618,014)	676,148	(5,941,866)

Table 2: Projected year-end position by Fund

Table 3 presents Council’s projected year-end Operating Result (before capital) by Fund.

Fund	Adopted Budget	Proposed Variations	Proposed Budget
General	(1,822,415)	(1,159,506)	(2,981,921)
Water	(883,241)	344,882	(538,359)
Sewer	(626,542)	273,750	(352,792)
Total	(3,332,198)	(540,874)	(3,873,072)

Table 3: Projected year-end operating result by Fund

Material changes to budget in the March quarterly review

Further information on the individual variations proposed as part of this review, which have a material effect on Council’s financial results, has been detailed over the following pages and in Table 4.

While there are a number of variations detailed in Table 4, the significant changes are due to:

A. The removal of the Forest Road bridge duplication. Council had budgeted $2.4M for this project but tenders received came in well over this amount and the Council therefore resolved not to proceed with the project at this time.

B. The remediation of the Canobolas Scout Camp has been deferred until 2018/19 due to delays in the official handover of the site.

C. The deferral of lighting for Max Stewart Oval to 2018/19 due to requirement for a development application to be lodged as current design cannot achieve compliance with relevant Australian Standards.

D. Construction of the rising sewer main relating to the Orange to Carcoar pipeline water security project.

Where amounts are shown against equity in Table 4 below, this indicates that money has been transferred in to and out of Council’s restricted asset funds to pay for nominated projects that are mostly capital in nature. For example, if Council receives grant monies in advance for projects that may happen over a number of years, the grant is transferred to a restricted asset account and held until the year in which the expenditure takes place. These transactions are thus recording internal transfers.

Table 4: Proposed material variations

Activity	Adopted Dec17 budget	Quarter 3 budget revision combined	Revised Mar18 budget	Comment
General Fund
Our City
1. Other Income	(983,852)	(1,720)	(985,572)
2. Capital Grants	(2,389,140)	2,351,050	(38,090)	Removal of funds relating to Forest Road Bridge Duplication offset at line item 8. Refer to material changes Note A.
3. Employee Costs	11,306,773	(29,300)	11,277,473	Reduction to employee costs to fund additional costs in materials and contracts at line item 4.
4. Materials and Contracts	7,491,589	(75,350)	7,416,239	Reduction of budget for Election expenses, and reallocation of materials and contracts to fund employee costs in our economy at line item 12.
5. Depreciation	1,028,454	(70,000)	958,454	Reallocation of budget to fund Software and leases of PC and notebooks as per line item 6.
6. Other Expenses	1,378,523	43,000	1,421,523	Addition budget for leases of PC and Notebooks funded from the reallocation of depreciation budget at line item 5.
7. Internal Transfer	(9,317,988)	5,537	(9,312,451)
8. Non-Current Fixed Assets	4,250,291	(2,302,330)	1,947,961	Removal of budget relating to Forest Road Bridge Duplication offset at line item 2.
9. Equity	813,454	47,413	860,867	Additional Budget allocated to the Election Expenses restricted asset to fund future Council elections

Activity	Adopted Dec17 budget	Quarter 3 budget revision combined	Revised Mar18 budget	Comment
Our Economy
10. Other Income	(4,660,219)	(25,000)	(4,685,219)	Increase in budget relating to expected income from Council owned property leases
11. Capital Grants	(1,342,500)	1,342,500	0	Deferral of funding relating to Canobolas Scout Camp to 18/19. Offset at line items 15 and 16. Refer to material changes Note B.
12. Employee Costs	1,318,592	126,074	1,444,666	Additional employee costs offset by a reduction in materials and contracts in Our City at line item 4 and Our Economy at line item 13.
13. Materials and Contracts	1,755,124	(60,037)	1,695,087	Reduction to Materials and contracts to fund employee costs at line item 12.
14. Internal Transfer	992,134	(63,037)	929,097	Reallocation of budget to fund additional employee costs offset at line item 7.
15. Non-Current Fixed Assets	(1,466,541)	(1,586,800)	(3,053,341)	Deferral of budget relating to Canobolas Scout Camp to 18/19 offset at line items 11 and 16. Refer to material changes Note B. Additional budget relating to capital income from sale of council property offset at line item 16.
16. Equity	2,191,911	74,300	2,266,211	Removal of drawdown of restricted asset for Canobolas Scout Camp and carried forward to 18/19 offset at line items 11 and 15. Refer to material changes Note B. Allocation of budget relating to sales of land to be put into restricted asset offset at line item 15.

Activity	Adopted Dec17 budget	Quarter 3 budget revision combined	Revised Mar18 budget	Comment
Our Community
17. Other Income	(1,348,372)	463,951	(884,421)	Reallocation of Other income to Operational Grant - Res Services at line item 18.
18. Operational Grants	(3,266,322)	(616,084)	(3,882,406)	Reallocation of Other income at line item 17 to Operational Grant - Res Services. Allocation of additional grant funding received offset In materials and contracts at line item 20.
19. Employee Costs	12,577,389	91,241	12,668,630	Additional employee costs funded from additional operational grants at line item 18.
20. Materials and Contracts	5,632,881	84,352	5,717,233	Additional expenditure offset by additional operational grants received at line item 18.
21. Non-Current Fixed Assets	1,971,232	(108,384)	1,862,848	Removal of budget for Max Stewart Lighting deferred to 18/19. Offset at line item 22. Refer to material changes Note C.
22. Equity	(793,422)	118,247	(675,175)	Removal of funding from S94 for Max Stewart Lighting deferred to 18/19. Offset at line item 21. Refer to material changes Note C.

Activity	Adopted Dec17 budget	Quarter 3 budget revision combined	Revised Mar18 budget	Comment
Our Environment
23. User Charges	(5,132,075)	9,900	(5,122,175)
24. Other Income	(199,022)	(25,554)	(224,576)	Reallocation of income from user charges at line item 23.
25. Oncost Recovery	(185,846)	(892,200)	(1,078,046)	Allocation of budget to oncost recovery, offset by additional capital works in road construction at line item 32.
26. Operational Grants	(2,658,801)	(234,167)	(2,892,968)	Allocation of Operational grant to fund materials and contracts line item 30.
27. Capital Grants	(5,037,344)	(90,380)	(5,127,724)	Allocation of Capital Grant to fund capital road construction at line item 32.
28. S93F Planning Agreements - Capital	(1,150,000)	550,000	(600,000)	Reallocation of VPA funds for Forest Road carried forward to 18/19 offset at line item 32.
29. Employee Costs	7,087,903	(3,333)	7,084,570
30. Materials and Contracts	9,596,185	113,316	9,709,501	Allocation of additional budget funded from Operational grant at line item 26.
31. Plant Expenses	574,624	(1,095)	573,529
32. Non-Current Fixed Assets	20,758,326	(2,271,046)	18,487,280	Allocation of budget for traffic facility and road construction, funded from a transfer from restricted asset offset at line items 27 and 33.
33. Equity	(8,689,489)	2,813,746	(5,875,743)	Allocation of budget for traffic facility and road construction, funded from a transfer from restricted asset offset at line item 32.

Activity	Adopted Dec17 budget	Quarter 3 budget revision combined	Revised Mar18 budget	Comment
Water Fund
Water Supply
34. Operational Grants	(5,514,873)	(4,413,662)	(9,928,535)	Allocation of budget for the Orange to Central Tablelands water pipeline offset at line item 37.
35. Capital Grants	(2,353,698)	(2,014,560)	(4,368,258)	Allocation of budget for the Orange to Central Tablelands water pipeline offset at line item 40.
36. Employee Costs	2,492,856	(4,473)	2,488,383
37. Materials and Contracts	10,189,128	4,735,267	14,924,395	Allocation of budget for the Orange to Central Tablelands water pipeline offset at line item 34.
38. Plant Expenses	192,641	(1,000)	191,641
39. Internal Transfer	3,262,509	28,750	3,291,259	Internal contribution to fund Water/Sewer Design engineer offset at line item 7.
40. Non-Current Fixed Assets	4,530,771	5,336,261	9,867,032	Allocation of budget for the Orange to Central Tablelands water pipeline offset at line items 35 and 41.
41. Equity	725,523	(4,311,739)	(3,586,216)	Allocation of budget for the Orange to Central Tablelands water pipeline offset at line items 37 and 40.

Activity	Adopted Dec17 budget	Quarter 3 budget revision combined	Revised Mar18 budget	Comment
Sewerage Fund
Sewer Operations
42. Materials and Contracts	1,780,247	(15,000)	1,765,247	Reallocation of Materials & Contracts to fund water availability charges at Sewage Treatment Plant at line item 44.
43. Internal Transfer	1,730,295	28,750	1,759,045	Internal contribution to fund Water/Sewer Design engineer offset at line item 7.
44. Water Availability - Internal	171,075	260,000	431,075	Additional budget required for water availability charges for increased potable water use at Sewerage Treatment Plant offset slightly at line item 42.
45. Non-Current Fixed Assets	2,268,712	1,149,792	3,418,504	Allocation of budget for sewer rising mains transferred from water mains budget relating to Orange to Carcoar pipeline at line item 40. Refer to material changes Note D.
46. Equity	564,189	48,952	613,141	Deferral of the draw down of restricted asset to 18/19 - Re LIRS Southern suburb augmentation offset at line item 45.

Note: Equity includes the funds internally or externally restricted. Examples include funds collected through Section 94 Developer Contributions, the balance of unexpended specific purpose grants, or other funds preserved by a specific Council resolution. Variations below $10,000 are classified as immaterial and therefore no comments are required.

Policy and Governance Implications

Nil

Recommendation

1 That the information provided in the report on the quarterly budget and performance indicators review for January to March 2018 be acknowledged.

2 That Council note the bank reconciliation statement.

3 That the variations arising from the March 2018 quarterly review amounting to a decrease of $676,148 in the consolidated surplus be adopted.

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 Performance Indicators highlight progress in achieving the strategies and actions set by Council’s Delivery/Operational Plan. The “traffic light” indicators show the status of each task. A green light indicates the task is on track. An amber light suggests some delay and a red light is provided to those tasks that are unable to be achieved. All tasks have a comment that indicates progress.

SUPPORTING INFORMATION

Highlights of the Quarter

Key achievements over the quarter include:

· Community Committee membership resolved by Council and induction sessions for members held. First meetings of the Committees held.

· Management of the Scout Camp resumed by Council.

· Orange continued to host a number of major sporting events including the 2018 NSW Country Diving Championships, the 2018 Swimming NSW Country Regional Meet, the Newcrest Orange Challenge, the 2018 Triathlon NSW Club Championships, and the 2018 Australian Over 50'S National Cricket Championships.

· Learn to Swim classes at the Orange Aquatic Centre fully occupied

· Staff opened an Emergency Operation Centre to assist the agencies fighting the fire on Mt Canobolas. Council staff assisted with road closures, plant operations, administration assistance and emergency operations.

· Council provided assistance to the successful Queen’s Baton Relay event.

· Development of Paddock to Plate exhibition at the Orange Regional Museum.

· Council’s website redesign is progressing.

· Visitor Information Centre assisted 27,501 people and 1,196 online enquiries.

· 80 events held on Council land and facilities ensuring the City of Orange is a destination of choice.

· 69 businesses participating in the Shop Orange campaign

· The number of people following the Council’s social media accounts increased by about 7 per cent.

· A satisfactory external work health and safety audit was undertaken in February as part of Council's accreditation.

· Clean Up Australia held in Orange on 4 March with 93 community members attending at 4 sites those being Elephant Park, Hill Park, Rotary Park and Clifton Grove. Some 40 bags of rubbish was collected on the day.

· A total of 128 development applications were determined

· Pedestrian/cyclist rail underpass completed adjacent to James Sheahan Catholic High School

Other Expenses

The format of the attached financial reports and the financial statements is prescribed. Council has requested details of the “Other Expenses” element in the statements given the high value of this item. The additional information is provided in Table 5 below.

Table 5: Details of other expenses

The $43,000 increase is due to the leasing of PC’s and notebooks that were previously purchased outright.

Review of Income

Figure 1 below provides a snapshot of the split of Council’s income against budget.

Figure 1: Details of Council’s income as a percentage of annual budget as at 31 December (50% through the financial year)

Income streams such as User Charges and Fees and Other Revenues are currently on track as generally their rate of receipt is consistent throughout the year.

As Council’s annual rates are levied in July of each year, this income is almost fully recognised in the first quarter.

Other income streams are subject to external influences including interest rates, occurrences of development, or the success of grant applications and as such, it is difficult to ascertain their current performance. These income streams are routinely reviewed, and adjusted as appropriate, at each quarterly review.

On the assumption that all income is received at a constant consistent rate over the year, by the end of the March quarter 75 per cent should have been received. However, given the recognition of almost all rates and annual charges in the first quarter, approximately 84 per cent of revenue should have been received. The “all income” bar of Figure 1 shows progress is slightly above this expected figure.

Rates and Charges Collection

For the second quarter, a total of $3.86 million (7.35 per cent) remains outstanding for rates and annual charges. For the purposes of comparison, for the same quarter last financial year 7.06 per cent of the amount payable remained outstanding.

Figure 2: Outstanding rates Q3 2017/18 vs Q3 2016/17

Review of Expenditure

Figure 3 provides a snapshot of the progress of Council’s expenditure.

Figure 3: Details of Council’s expenditure as a percentage of annual budget

In general, Council’s routine operational expenses should be incurred at a consistent rate. These include expense groupings such as Employee Costs, Materials and Contracts, Plant Expenses, Depreciation and Other Expenses. As presented in Figure 3 above, most of these expense groups are slightly below budget.

Council rates for Council-owned properties are paid in full at the start of the year.

On the assumption that all expenses are incurred at a constant consistent rate over the year, by the end of the March quarter 75 per cent should have been paid out. The “all expenditure” bar of Figure 3 shows performance is exceeding this expected figure

Financial Performance Indicators

Figures 4 to 6 below represent financial performance against local government industry indicators from the annual financial statements. The charts compare annualised actual performance from 2016/17 against the original 2017/18 budget and the proposed revised 2017/18 budget. In all instances, performance is maintained above the industry benchmarks noted.

Figure 4: Operating performance ratio

The purpose of the operating performance ratio is to measure the extent to which Council succeeds in containing operating expenditure within operating revenue (excluding capital grants and contributions). The formula is as follows:

(Total continuing operations revenue excluding capital grants and contributions minus operating expenses) divided by (Total continuing operations revenue excluding capital grants and contributions)

Reporting this ratio needs a full year’s data in order to be fully comparable. However, the performance to date indicates Council is tracking in advance of the benchmark and 2017/18 budget. 2016/17 was an exceptional year in terms of performance due to actual revenue coming in above budget and actual expenditure being below budget.

Figure 5: Own source operating revenue ratio

The purpose of the own source operating revenue ratio is to measure fiscal flexibility by analysing the degree of reliance on external funding sources including operating grants and contributions. The formula is as follows:

(Total continuing operations revenue minus all grants and contributions) divided by

(Total continuing operations revenue inclusive of all grants and contributions)

The performance to date indicates Council is tracking in advance of the benchmark and targeting a similar level of funding as achieved in 2016/17.

Figure 6: debt service cover ratio

The purpose of the debt service cover ratio is to measure the availability of operating cash to service debt including interest, principal and lease payments. The formula is as follows:

(Operating results before capital excluding interest and depreciation) divided by

(Principal repayments from the cashflow statement plus borrowing costs from the income statement)

The performance to date indicates Council is tracking in advance of the benchmark and the original 2017/18 budget.

In addition to the information presented in the report, the latest bank reconciliation report is attached for Council’s information.

Report by Responsible Accounting Officer

The following statement is made in accordance with Clause 203(2) of the Local Government (General) Regulation 2005:

As the Responsible Accounting Officer, it is my opinion that the Quarterly Budget Review Statement for Orange City Council for the quarter ended 30 September 2017 indicates that Council’s projected financial position for 30 June 2018 will be satisfactory having regard to the project estimates of income and expenditure, and variations contained therein.

Jason Cooke, Responsible Accounting Officer

Attachments

1 Performance Indicators - 2017/21 Quarter 3, D18/21019 ⇩

2 March Quarterly Review, D18/23770 ⇩

3 Major Works Table - March Quarter 2018, D18/24085 ⇩

4 March 2018 Quarterly Bank Reconciliation, D18/21706 ⇩

Council Meeting 15 May 2018

5.3 Quarterly Budget Review and Performance Indicators

Attachment 1 Performance Indicators - 2017/21 Quarter 3

1. Our City

The Orange community will embrace and support strong, accountable leadership to ensure effective, long term, inclusive planning and decision-making within the region.

1 - In complying with the Local Government Act, the Environmental Planning and Assessment Act and other relevant legislation, decisions and planning are merit based, informed, impartial and consistent

1.1 - Provide easily obtainable information on the legal responsibilities of Councillors, Council staff and the community
Ref	Task	Comment on Task	Performance Indicator	Target	Comment on Indicator	Status
1.1.1	Maintain the delegations and sub-delegations register	Delegations reported to Council annually, Sub delegations reviewed as part of the performance appraisal process and signed off annually.	Review delegations to the General Manager in November annually	Oct-Dec annually	Scheduled to be reviewed prior to September 2018	n
1.1.1	Maintain the delegations and sub-delegations register		Update and distribute sub-delegations to staff in December annually	Oct-Dec annually	Updates made and distributed to relevant staff during the quarter.	n
1.1.2	Provide information to Councillors on training and development opportunities	Training and Development opportunities were reported to Council.	Coordinate with the Mayor and the Councillors on Councillors training and development plans as per requirements in the Local Government Act	Oct-Dec annually	This will be done in October/November 2018	n
			Design the Councillor induction program following the September 2017 election	Jul-Sep	Councillor Induction Program designed and implemented.	n
			Implement and manage the delivery of the Councillor induction program following the September 2017 election	Jul-Sept, Oct-Dec	Councillor Induction Program designed and implemented.	n
1.1.3	Undertake testing of Council's Business Continuity Plan	The Business Continuity Plan for the Civic Centre was reviewed during the quarter.	Business Continuity Plan tested and reviewed in December annually	Oct-Dec annually	The Business Continuity Plan for the Civic Centre was reviewed during the quarter.	n
1.1.4	Maintain the enterprise risk management system	The Enterprise Risk Management System was maintained during the quarter.	Annual review of Corporate Risk Register and report to Council via the Audit and Risk Management Committee	Each quarter annually	The Corporate Risk Register was reviewed and reported to the March Audit and Risk Management Committee	n
			Compliance reporting quarterly to Directors	Each quarter annually	Compliance reports delivered	n
			Deliver an internal audit program based on the corporate risk issues with reports on progress against the program made to Council on a quarterly basis	Each quarter annually	Internal audit program delivered during the quarter in accordance with the Internal Audit Program	n
1.1.5	Ensure Council maintains an internet and social media presence reflective of Council activities, services and facilities	Council’s online presence continues to grow at a steady rate. Council’s Your Say Orange page has amassed 1,467 registered users and attracted 11.4 thousand people, during the three months. This compares to 20 thousand people the previous quarter, however there was an active campaign under way to promote the community strategic plan during that time. During the last quarter the number of people following the Council’s social media accounts increased by about 7 per cent. Posts and news items about the beginning of the Forest Road upgrade were the most popular and received the most comments and engagement.	Increase social media engagement and reach by 25%	April-Jun	During the last quarter the number of people following the Council’s social media accounts increased by about 7 per cent.	n
1.1.5			Maintain the Council website with weekly updates	Each quarter annually	Updates are made to Council’s website several times each week.	n

1.2 - Information and advice provided for the decision-making process will be succinct, reasoned, accurate, timely and balanced
Ref	Task	Comment on Task	Performance Indicator	Target	Comment on Indicator	Status
1.2.1	Manage Council’s records system	All incoming letters and emails to Council registered into the Records System on a daily basis and allocated for action to relevant staff members.	All incoming letters and emails to Council registered into Council's system daily and allocated to appropriate staff member	Each quarter annually	All incoming letters and emails to Council registered into the Records System on a daily basis and allocated for action to relevant staff members.	n
1.2.2	Provide financial reporting with reference to the Long Term Financial Plan and the Delivery/Operational Plan requirements	December quarterly budget variations have been submitted and are currently being entered into the finance system ready for final review. Annual financial statements were lodged on schedule with the Office of Local Government by the due date of 31 October 2017.	Quarterly reports presented to Council within two months of the end of each quarter	Each quarter annually	December quarterly budget review resolved by Council on 20/2/18	n
1.2.2			Annual financial statements finalised by November	Oct-Dec annually	Annual financial statements were lodged on schedule with the Office of Local Government by the due date of 31 October 2017.	n
1.2.3	Establish and support Council meetings, policy committees and Council's community committee network	Support was provided for Council Meetings, Councillor Briefings and the Councillor Induction Program over the quarter. Council established the community committee framework, and expressions of interest for members were called.	Prepare and distribute agendas and reports for Ordinary Council and policy committee meetings within three business days of the meetings	Each quarter annually	Agendas and reports prepared in accordance with timeframes.	n
			Review Council's community committee network structure in September annually	Jul-Sep annually	This was completed in September 2017	n
			Establish the annual committee meetings schedule in September annually	Jul-Sep annually	Committees are setting their meeting schedules as part of their first meeting.	n
			Undertake a strategic planning session with all community committees in September-December annually	July-Sept, Oct-Dec annually	This will be done in September/October 2018	n
			Review charters of community committees in October annually	Oct-Dec annually	All Charters reviewed and adopted by Council during the quarter.	n
			Annual report from the Audit and Risk Management Committee by April annually	Apr-Jun annually	The Annual Report from the Audit and Risk Committee was presented to Council during the quarter.	n
			Report of complaints under Council's code of conduct to Council by December annually	Oct-Dec annually	Report provided in December 2017. Council resolved to receive update reports on statistics quarterly which will commence in the next period.	n
1.2.4	Implement information technology strategy initiatives	NBN has been installed at various sites and all lines so far have been changed over prior to the notified disconnection dates - around 34 of a total of 172 remain to be changed across and we are working with Telstra to ensure this occurs without loss of services at any sites. Standard Operating Environment to involve move up to Windows 10 by June 2018, along with Office 2016, as standard across the organisation is continuing with all PC's/laptops due for replacement this Financial Year completed. Now concentrating on pre-existing PC's/laptops being upgraded. Website redesign is progressing and will be upgraded in stages due to its large amount of content.	Records system integration with Land and Property system	Oct-Dec	Will commence in October	n
			Services review - security, website software (internet and intranet)	Apr-Jun annually	New website being established by Communications section and IT. To be rolled out in stages.	n
			CCTV network review and systems improvement plan	Apr-Jun annually	Planning underway	n
			Review NBN impacts on Council	Jul-Sep annually	Working with Telstra to implement NBN on all landlines by April 2018	n
			Investigate e-planning initiatives and impacts and potential solution design	Oct-Dec annually	Keeping a watch on State Govt requirements in this realm. Building Certification data reporting is next requirement due by 1st July 2018.	n
			Standard operating environment developed and maintained	Jul-Sep annually	This is an ongoing process requiring constant review to ensure it is kept up to date. Moving to Windows 10 across organisation by 30 June 2018.	n
			Councillor download and online information system solution refreshed	Oct-Dec	Using One Drive for this solution.	n
			Telemetry network review and hardware refreshment program	Oct-Dec	RFQ sent out in November regarding a review of Telemetry system and improvements. Initial meetings have been held in March with Hunter H2O who were the successful firm.	n
			Customer request management system review	Year 2	Will commence next year	n
1.2.5	Achieve maximum return on the investment of Council's funds whilst adhering to all applicable legislative requirements and Council's policy	Monthly reports have been completed and submitted on time to Council for the first 9 months of the financial year. The annualised average interest rate of Council’s investment portfolio continues to exceed Council benchmarks.	Monthly reports to Council on the performance of the investment portfolio	Each quarter annually	All monthly reports for 3rd quarter presented to and resolved by Council.	n
1.2.6	Review and implement operational efficiency opportunities	Progress against the Improvement plan continues. Assessment of purchasing processes has progressed with online order receipting project continuing, developments contributions plan in place, levels of service review and community engagement as part of the Community Strategic Plan has been finalised, briefing on analysis of impact of child care subsidies on business modelling has been provide to Council, entry to town designs have been augmented with concepts for Dairy Creek Road intersection with highway and impacts of the new caravan park site, the assets management plans and strategy have been updated, staff oncosting for budget purposes is being revised and systems integration efforts have been completed.	Consideration of actions and efficiencies from the activities identified in the Fit for Future Improvement Plan reported to General Manager and used to inform future budgets	Apr-Jun annually	Progress against the Improvement plan continues. Assessment of purchasing processes has progressed with online order receipting project continuing, developments contributions plan in place, levels of service review and community engagement as part of the Community Strategic Plan has been finalised, briefing on analysis of impact of child care subsidies on business modelling has been provide to Council, entry to town designs have been augmented with concepts for Dairy Creek Road intersection with highway and impacts of the new caravan park site, the assets management plans and strategy have been updated, staff oncosting for budget purposes is being revised and systems integration efforts have been completed.	n

1.3 - Ensure a robust framework that supports the community’s and Council’s current and evolving activities, services and functions
Ref	Task	Comment on Task	Performance Indicator	Target	Comment on Indicator	Status
1.3.1	Provide a framework for development in the City through Council's local environmental plan, plans of management and development control plan	Internal Review of Draft DCP commenced in 2017. Finalisation of this review is expected in fourth quarter of 2017/17.	Develop and have adopted a new City-wide development control plan by the end of 2017	Jul-Sep, Oct-Dec, Jan-Mar, Apr-Jun	Internal Review continuing on this document to ensure Plan will reflect planning values of the City. Target - last quarter of 2017/18	n
1.3.2	Review and report on the five key areas of our environment (water, air, biodiversity, soil, salinity) through preparation of the state of environment report	The published annual statement of environment report included the five key areas of our environment.	Publish the annual statement of environment report by November	Oct-Dec annually	Completed	n
1.3.3	Support the Local Emergency Management Committee	Continuing to support the Local Emergency Management Committee. During the last quarter staff opened an Emergency Operation Centre to assist the Agencies fighting the fire on Mt Canobolas. Council staff assisted with road closures, plant operations, admin assistance and emergency operations.	Support local emergency planning in conjunction with key agencies	Each quarter annually	Continuing to support the Local Emergency Management Committee.	n
1.3.4	Support the Rural Fire Service	Council continued to support the Rural Fire Service in the last quarter. An Emergency Operation Centre was opened to support the fire fighter at the Mt Canobolas fire and also through administration services.	Provide ongoing support and advice to quarterly Bush Fire Management Committee meetings and Bush Fire Liaison meetings	Each quarter annually	Council continued to support the Rural Fire Service.	n
1.3.5	Develop and implement the suite of integrated planning and reporting documents	Work is under way on the next suite of planning and reporting documents.	Comprehensive review of the Community Strategic Plan by June 2017	Jan-Mar	Nearing completion.	n
			Annual minor review of the Community Strategic Plan by February annually	Jan-Mar annually	Will commence in Year 2	n
			Finalisation of the Delivery/Operational Plan by June annually
			Apr-Jun annually	Will be finalised in the next quarter	n
			Review of the Resourcing Strategy by December annually to via the Long Term Financial Plan, the assets planning documents and the Workforce Management Plan	Oct-Dec annually	n	Will be completed in the next year
			Preparation of the Annual Report by October annually
Oct-Dec annually	Previous year complete	n
Undertake quarterly reviews of the Delivery/Operational Plan and report to Council	Each quarter annually	Quarterly reviews provided	n

1.4 - Ensure a framework that Council’s policies, procedures and programs relate to the vision and directions of the Community Strategic Plan, including a disability action plan
Ref	Task	Comment on Task	Performance Indicator	Target	Comment on Indicator	Status
1.4.1	Maintain a framework of relevant policies and procedures	A comprehensive review of Strategic Policies was undertaken during the quarter. Council resolve to delete 26 unrequired Strategic Policies and resolved the review schedule for remaining policies	Facilitate the review of strategic policies annually, with the code of conduct reviewed by March, the code of meeting practice reviewed by April and Councillors' payment of expenses and provision of facilities policy reviewed in September	Each quarter annually	Council adopted 8 policies during the quarter, and resolved to place 7 policies on public exhibition.	n
1.4.1	Maintain a framework of relevant policies and procedures		Facilitate the review of operational policies annually	Each quarter annually	An Operational Policy Review framework has been developed during the quarter.	n
1.4.2	Ensure Councillors are made aware of key policy requirements	Key policy advice is provided to Council via reports.	Provide advice on key policy and legislative changes as required	Each quarter annually	Key policy advice is provided to Council via reports.	n
1.4.3	Maintain and implement the Disability Inclusion Action Plan 2017/21	Increased Actions completed.	Maintain and implement the Disability Inclusion Action Plan	Each quarter annually	Final review of completed actions to be completed in May	n

2 - Provide multiple opportunities for the community to engage in planning, policy and advocacy for the development and direction of the City of Orange, recognising the special needs of older residents and people from culturally diverse/non-English speaking backgrounds

2.1 - Provide a flexible and adaptable community engagement process for gathering and disseminating information, ideas and responses and engage with the community through a variety of formats
Ref	Task	Comment on Task	Performance Indicator	Target	Comment on Indicator	Status
2.1.1	Promote Council's activities through media releases and media briefings, and host community information sessions when appropriate	Council released about 34 media releases during the last quarter, covering a range of events and news. The most popular news items were about the Queens Baton coming to the city, a delay on the Winter Street/Wakeford St/Icely Road roundabout, the start of the Forest Road upgrade and Council’s new approach for dealing with stray pets. On average Council’s media department handled about three media requests per day requiring various actions such as providing statements, background briefings, arranging interviews or setting up media opportunities.	Provide at least one media briefing per week	Each quarter annually	Background briefings provided on a weekly basis	n
			Issue media releases at a minimum of one weekly	Each quarter annually	Council released about 34 media releases during the last quarter, covering a range of events and news.	n
			Issue bulletins through the Council E-news service monthly	Each quarter annually	Monthly bulletins issued.	n
			Implement Council-wide Style Guide to inform communications documents, websites and social media presence	Apr-Jun annually	Style guide under way and amended logo adopted.	n

2.2 - Provide Council customer service that is easy to access and use and is interactive and responsive
Ref	Task	Comment on Task	Performance Indicator	Target	Comment on Indicator	Status
2.2.1	Provide a highly-responsive customer service function	Council continues to provide a responsive service to customers. Issues reported via the website or by phone/email are allocated to relevant staff for attention within two business days.	Remind all staff of their obligations under Council's customer service obligation policy by June annually	Each quarter annually	This will be undertaken in the next quarter.	n
			All issues reported via Council's website or by phone/email to Council allocated to relevant staff member for attention within two business days	Each quarter annually	Issues reported via the website or by phone/email are allocated to relevant staff for attention within two business days.	n
			Continue to provide after-hours call answering service	Each quarter annually	The after-hours service continues.	n

2.3 - Facilitate community input into local and regional strategic lobbying and advocacy initiatives for the needs and aspirations of the people of the City of Orange to external stakeholders
Ref	Task	Comment on Task	Performance Indicator	Target	Comment on Indicator	Status
2.3.1	Maintain membership of key lobby groups to advance regional priorities	Membership was maintained on key lobby groups.	Build on relationships with key lobby groups including but not limited to: - Centroc - Regional Development Australia - Inland Forum - NetWaste - Central West Libraries - Bathurst Orange and Dubbo Alliance - Association of Mining Related Councils - Local Land Services - Government Ministers and departmental officers - LGNSW	Each quarter annually	The following meetings were attended by the General Manager, Mayor or both during this period: Country Mayor’s Association, 2 February 2018 Centroc Executive Meeting, 8 February 2018 GMAC, 8 February 2018 The Hon John Barilaro, Deputy Premier, 10 February 2018 Centroc Board Meeting, 22 February 2018 Association of Mining and Energy Related Councils, 23 February 2018 Inland Forum, 1 March 2018 Local Land Services Board, 20 March 2018 Regional Development Australia, 26 March 2018	n