Agenda of Council Meeting - Tuesday, 6 April 2021

Council Meeting 6 April 2021

2.2 Mayoral Report - Central NSW JO Board Meeting - 11 March 2021

RECORD NUMBER: 2021/528

Mayoral Minute

I attended the Central NSW Joint Organisation Board meeting on Thursday 11 March 2021 in Blayney. This Mayoral Minute provides a summary of that meeting and attaches minutes for your information.

Recommendation

That the information contained in this Mayoral Minute be acknowledged.

Cr Reg Kidd
Mayor

SUPPORTING INFORMATION

The focus for the day was Telecommunications, the Presentations to the Board included:

1. WaterNSW Alex Fischer and Alice Jarrett , provided an update on the Wyangala Dam Project

2. NBNCO Mr Steve Bowman gave an update on major recent announcements and opportunities for the region, with LGA specific briefs.

The Board congratulated Cr Ruth Fagan on her role as the new Chair for RDACW. The MOU with Regional Development Australia Central West was signed, it had been delayed from its original adopted date by COVID restrictions.

Priority One - Inter-council cooperation

The Financial - Budget and Statement of Revenue Policy 2021-2022 was adopted for public exhibition. It is available on the CNSWJO website at https://www.centraljo.nsw.gov.au/publications/

Advocacy plans are updated annually for Board review. Advocacy plans for Water and Regional Prosperity were adopted and the information in the will inform various submissions and representations during the year.

Best Practice in Aggregated Procurement

This project is being funded by the Capacity Building funds from the Office of Local Government and is a collaboration of four Joint Organisations. General Managers and other key staff will be invited to a workshop in mid-April to discuss the findings from Stages 2 to 6, as well as develop a 5-year regional procurement plan. Calendar invitations will be sent shortly. It is anticipated that the project will be complete by June 2021.

DPIE Energy Project

Information was provided on two upcoming Expression of Interest processes and one Request for Quotation process where the resulting contracts will be between members and the successful provider.

A number of RFQs have been released to progress the work identified. CNSJWO has taken the lead on the procurement of the activities, however DPIE is the contracting party. The RFQ for the Renewable Energy Action Plans was awarded to:

• Chargeworks – for Forbes, Orange, and Parkes

• 100% Renewables – for Oberon and Weddin.

The RFQ for the solar and storage assessments is under way where it is anticipated that the successful provider for this work will be engaged in mid-March. Blayney and Central Tablelands Water is participating in these assessments.

Southern Lights

The Southern Lights project continues to move forward, albeit slowly. Essential Energy has provided the following update of the LED rollouts (as at late February 2021):

A total of 100,000 lights across the entire Essential Energy footprint have now been installed.

Councils questioned the amount of lights installed as being major and an audit of lighting installed is anticipated.

Priority Two: Regional Prosperity

Visitor Economy Strategy

Members have provided feedback on the Visitor Economy Strategy (the Strategy). Please see the key messages.

Key messages

1. Central NSW has a proud history of Local Tourism Organisations working collaboratively to grow the visitor economy. This collaboration respects every destination is at a different place on the journey.

2. People visit a region before they relocate so impressions they experience on a visit or receive by word of mouth or in online forums are important.

3. With international travel unlikely until the end of 2021, the short to medium term following the Covid-19 pandemic is a critical time to invest in tourism in Central NSW.

4. It will be important to align with Tourism 2030 once it is launched. With its expected focus on regions, the Australian Government may fund regional initiatives and promote the regions for livability.

5. Given the visitor demographic, the rapid growth in the visitor economy as a result of the Covid-19 pandemic and transport constraints between Sydney and Central NSW, an urgent investment is required to encourage weekend visitors to stay longer in region, especially past Sunday afternoon.

6. The Australian and NSW governments funding to improve road connectivity including:

a. Into Western Sydney where the journey east is subject significant delays on a regular basis

b. Continued improvements to the Newell Highway

c. Connections from Canberra and the South Coast.

7. A growth in the visitor economy will be enabled by the Australian and NSW governments delivering reliable NBN and mobile phone coverage across the whole region.

8. NSW Government departments responsible for Planning, Infrastructure, Heritage and Parks and Wildlife and Crown Lands should collaborate with the key decision makers in Central NSW to enable product development to grow the visitor economy. This includes investment in static infrastructure such as directional and interpretive signage, heritage structures, silos and sculptures as well as dynamic infrastructure, for example, rail trails for walking/cycling and on- and off-road cycle tracks.

9. Federal, State and Local Government owned existing and emerging infrastructure that generates visitor experiences is vital for the economy and require ongoing investment.

10. The NSW Government, Destination NSW and the CNSWJO should collaborate for better funding and governance arrangements to support the visitor economy. This includes:

a. Equity of service because DNCO services 61% of the State and is currently under resourced for its task

b. Equity of funding across the state due to the sometimes limited budget for regional councils to allocate funding to new products and capacity building

c. Leveraging the JO structure to maximise efficiencies and effectiveness

d. Supporting all destinations to build the contribution of tourism to their local economy to at least the NSW State average by 2025.

11. Support councils to implement infrastructure, training and planning initiatives to support the visitor economy. Examples include public amenities, unused buildings/rail tracks, CBD upgrades or infrastructure assets, as well as capacity building of existing operators and the development of quality accommodation, food and retail offerings.

The next steps will be to receive advice from members on priority tourism infrastructure investment and implement short term programming within existing resource as suggested in the Plan.

Regional Activators Alliance

Advice was provided to the Regional Australia Institute (RAI) initiative by members in the form of case studies.

The first opportunity was to provide information to go into the national campaign. Councils responded well to this opportunity. Weddin Shire Council Residents were one of two that were first to have their case study shared on the launch date 22 February. See the story here. http://www.regionalaustralia.org.au/home/madethemove/

A 20-Year Economic Vision for Regional NSW – Refresh and skills

Members will be aware that the NSW Government has reviewed and refreshed its 20 Year Economic Vision (REV). The first REV was informed from the Regional Economic Development Strategies based to some extent in this region around Functional Economic Regions.

There is opportunity for alignment and advice to the Board from the Regional Prosperity Subcommittee on opportunities that can be realised by members and/or the region.

In discussion regarding the opportunities afforded by the REV the matter of skills shortages was discussed and the Board has sought collaborative work to be undertaken between CNSWJO and RDACW with a report to be provided to the next meeting.

Priority Three: Regional Transport and Infrastructure

Progressing a Western Link Event.

Follow-up has been undertaken subsequent to the resolve of the Board in December. At the time of writing an event is being organized in Penrith hosted by Penrith bringing together key stakeholders and being facilitated by The Western Sydney Dialogue – a Western Sydney thinktank.

Inland Rail Productivity Enhancement Program

The Board were successful in a joint EOI application for the Inland Rail Interface Improvement Program (II Program) – Productivity Enhancement Program (PEP) with RDACW and have accepted the offer.

An update will be received to the June Board meeting.

Priority Four: Regional Water Security

Water update

The Board was briefed on the huge amount of complex, strategic work underway at the State and Federal level that has implications for the management of water by Local Government in regional NSW and of efforts by the CNSWJO to partner in what needs to be a whole-of-government approach. It is informed by and informs the Advocacy Plan.

Please see the full report on the website at https://www.centraljo.nsw.gov.au/business-papers-agendas/ page 62.

The Board resolved that the CNSWJO become a member of the Central West Orana Regional Recovery and Resilience Subcommittee and a proxy member of the Town Water Risk Reduction Program Stakeholder Advisory Panel. It also resolved that submissions be made through the Executive and in line with Board policy in response to requests for feedback on the State Water Strategy and Productivity Commission’s Report on National Water Reform.

All submissions are to be in accordance with CNSW JO policy and are available on the CNSWJO website or by request https://www.centraljo.nsw.gov.au/submissions/ Please request the CNSWJO Advocacy Plan for Water for more detail or contact jenny.bennett@centraljo.nsw.gov.au

Value to members

A snapshot of the value to members of the various activities undertaken by the JO for their members in the context of the CNSWJO Strategic Plan follows where more detail can be provided on request.

VALUE FOR MEMBERS 2020/2021	PREVIOUS FY 2019/2020	ACTIVITY FYTD
SUBMISSIONS	20	20
PLANS, STRATEGIES AND COLLATERAL	26	9
GRANTS	3	3
COMPLIANCE	13	9
DATA	6	3
PR VALUE OF TOURISM COLLABORATION	$1.5m	Data being collected
MEDIA INCLUDING SOCIAL MEDIA	13	14
COST SAVINGS	$1.87m	$763,765
REPRESENTATION	147	127
OPPORTUNITIES COUNCILS HAVE BEEN AFFORDED	35	37

PR Value

Images following are from the story in “Explore” which has run across the ACM media group in NSW in 14 media outlets with print papers running a double page story with images (attached examples in Canberra Times and Newcastle Herald). A full list of PR results for Central NSW Tourism is being collated.

Diagram

Description automatically generated

Savings

The following table shows the savings achieved by member councils through aggregated procurement and programming. An explanation of the meaning of each column has been reported previously and is available on request. The table reflects savings in the 20/21 financial year up to 31 December.

The cost to members is calculated on a percentage of each CNSWJO staff member and their corresponding workload on procurement and contract management. This figure is updated quarterly in line with the cost savings.

Regional Submissions

Members have forwarded requests for the JO to lodge submissions as follows where all advice provided is within existing policy. All are available on the CNSWJO website at https://www.centraljo.nsw.gov.au/submissions/

1. Inquiry into health outcomes and access to health and hospital services in rural, regional and remote New South Wales – Lodged 15 January 2021.

2. Inland Rail project and regional NSW- this submission is being co-authored with Central West RDA. – Lodged 5 February 2021.

3. Release of Exposure Draft Bill on local government rating reform. The response focused on the mining rate where the advice to the Draft Bill shows a much better result than that anticipated from earlier advice from the OLG. – Lodged 5 February 2021.

4. Rapid Assessment Framework – Lodged 12 February 2021.

5. An Agricultural Land Use Strategy – Lodged 28 February 2021

ORANGE CITY COUNCIL

MINUTES OF THE

Ordinary Council Meeting

HELD IN Council Chamber, Civic Centre, Byng Street, Orange with an option of online conferencing platform ZOOM due to COVID-19 requirements

ON 16 March 2021

COMMENCING AT 7.01pm

1 Introduction

Attendance

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

Chief Executive Officer, Acting Director Corporate and Commercial Services (Redmond), Director Community, Recreation and Cultural Services, Director Technical Services, Acting Manager Corporate Governance (Constantine), Chief Financial Officer, Executive Support Officer

1.1 APOLOGIES

Nil

1.2 LIVESTREAMING AND RECORDING

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

1.3 OPENING PRAYER

Khalid Tufail of the NSW Regional Islamic Centre led the Council in Prayer.

1.4 ACKNOWLEDGEMENT OF COUNTRY

The Mayor conducted the Acknowledgement of Country.

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

Cr McRae declared a Non-Significant Non-Pecuniary interest during discussions on item 5.3 when Orange Harness Racing was raised as she has a family member who is the President of Orange Harness Racing.

The Mayor spoke about Channel Nine’s affiliation ceasing with Southern Cross Austereo as of 30 June 2021 and its return to partnering with the Win Network. From 1 July 2021, Nine’s programs will be shown on Win. Nine’s local news bulletin will cease and the Nine Central West news room and other Regional news rooms across the country will close on June 30, 2021 and roles of staff will be made redundant.

RESOLVED - 21/072 Cr J Hamling/Cr G Taylor

That the Mayor approach the Local Member Andrew Gee to raise the issue of television stations being required to have local news rooms as part of their licencing requirements.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

RESOLVED - 21/073 Cr S Nugent/Cr S Munro

That Council permit the addition of the Late Item 5.6 – National General Assembly – Orange City Council Motions 2021.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

2 Mayoral Minutes

Nil

Cr Duffy spoke regarding the recent NSW Tidy Towns Awards. Awards achieved were:

· FoodCare Orange – Category E Winner – Community Spirit Award

· Overall Sustainable Communities Award for being a Finalist in Category E.

Cr Duffy presented the Awards to Council and noted that Roger Smith, Council’s Natural Resources Coordinator should be congratulated on his commitment to Tidy Towns.

RESOLVED - 21/074 Cr R Kidd/Cr S Munro

That a letter be written to the Tidy Towns Committee congratulating them on their efforts in achieving these awards.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

Cr Hamling spoke to the recent Suncorp Super Netball Trial Game and presented a plaque to Council. He also spoke about staff member Ben Keegan’s ongoing commitment and work for the city’s sporting events.

MATTER ARISING

The Mayor requested that Ben Keegan be invited to an upcoming Council Meeting to be thanked by Council.

Cr Whitton spoke on the excellent tourism during September 2020 where $100million was brought into the community income with Orange ranking as the highest tourism destination during the period.

Cr Kidd also raised the wonderful donation made to the new Orange Regional Gallery from John Olsen AO.

3 Confirmation of Minutes of Previous Meeting

RESOLVED - 21/075 Cr S Nugent/Cr S Romano

That the Minutes of the Ordinary Meeting of Orange City Council held on 2 March 2021 (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 2 March 2021, with the deletion of the Chief Financial Officer from the Attendance as he was not at this meeting.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

4 Notices of Motion/Notices of Rescission

Nil

5 General Reports

5.1 Recommendations and Resolutions from Policy Committees

TRIM Reference: 2020/2572

RESOLVED - 21/076 Cr J Hamling/Cr G Taylor

1 That the resolutions made by the Planning and Development Committee at its meeting held on 2 March 2021 be noted.

2 That the resolutions made by the Infrastructure Policy Committee at its meeting held on 2 March 2021 be noted.

3 That the resolutions made by the Sport and Recreation Policy Committee at its meeting held on 2 March 2021 be noted.

4 That the resolutions made by the Environmental Sustainability Policy Committee at its meeting held on 2 March 2021 be noted.

5 That the resolutions made by the Finance Policy Committee at its meeting held on 2 March 2021 be noted.

6 That the resolutions made by the Services Policy Committee at its meeting held on 2 March 2021 be noted.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

5.2 Statement of Investments - February 2021

TRIM Reference: 2021/269

RESOLVED - 21/077 Cr K Duffy/Cr J Whitton

That Council resolves:

1 To note the Statement of Investments as at 28 February 2021.

2 To adopt the certification of the Responsible Accounting Officer.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

5.3 Update on Outstanding Resolutions of Council including Questions Taken on Notice and Notices of Motions.

TRIM Reference: 2021/242

Cr McRae Declared a Non-Significant Non-Pecuniary interest in this item when discussion turned to Orange Harness Racing as a family member is the President of Orange Harness Racing Club, left the chamber and did not participate in discussion on this part of the item or voting on the item as a whole.

RESOLVED - 21/078 Cr S Nugent/Cr K Duffy

That the information provided in the report by the Acting Director Corporate and Commercial Services on Outstanding and Completed Notices of Motion, Questions of Notice and Matters arising be acknowledged.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Cr McRae

Cr Mileto asked about the status of additional bins in Elephant Park.

The Director Community Recreation and Cultural Services stated that temporary bins had been placed in the park however there appears to be an issue of domestic waste dumping at the site. Increased collections have been organised in the interim while a permanent solution is put in place.

Cr Mileto asked for an update on the Risk Audit Report on Sporting Amenities including Asbestos.

The Director Technical Services stated that Council holds a full asbestos register of all buildings and a report will be prepared for Council.

Cr Nugent raised the issue of fishing in the Ploughmans Wetlands where sides of the wetlands and barriers have been damaged.

The Chief Executive Officer stated that the fishing platform is going in quite shortly which may resolve the issue however while there are two designated fishing areas, there is no signage, so an education program through guidance signage on where to fish will be installed.

MATTER ARISING

That the Blackberries at Ploughmans Wetlands on the Southern End of the Wetlands towards Wentworth Drive be treated to prevent further growth.

Cr Duffy asked after the progress of a Civic Reception for Jack Wighton.

The Acting Director Corporate and Commercial Services stated that staff had been in contact and are awaiting availability in order to proceed with the reception.

Cr Duffy asked after the progress of an Asphalt plant in Orange.

The Director Technical Services advised that there were two companies interested still and that Council will be briefed in a closed session.

Cr Taylor raised concerns about seating having been removed from Summer Street.

The Director Technical Services stated that not all seats have been removed; bus stops are still serviced by benches. The City Presentation staff do a wonderful job and noted some seats were not in good condition. No they haven’t been replaced. Staff are currently consulting with business owners regarding placement of seating along Summer Street.

RESOLVED - 21/079 Cr R Kidd/Cr S Munro

That Orange’s Taronga Zoo Rhino Trail Rhino be relocated back to the Botanic Gardens from Lake Canobolas.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

**Cr McRae left the chamber with the time being 7.54pm**

RESOLVED - 21/080 Cr R Kidd/Cr R Turner

That a report on funding to Orange Harness Racing be provided to Council including what took place in discussions with NSW Harness Racing.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

**Cr McRae returned to the chamber with the time being 8.03pm**

5.4 Projects Activities March 2021

TRIM Reference: 2021/316

RESOLVED - 21/081 Cr J Whitton/Cr K Duffy

That the information in the report on Projects be acknowledged.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

Cr Taylor asked about the time frames for the Southern Feeder Road (SFR) completion.

The Director Technical Services stated that the SFR is progressing well and will see Asphalt this week on the Endsleigh Avenue to Lone Pine Avenue stretch then switch to the next section of Lone Pine Avenue to Bathurst Road due for completion by August.

Cr Hamling asked about the status of the road on Coronation Drive and whether this has occurred due to the increase in logging trucks.

The Director Technical Services stated that this is a Regional Road and Council does receive funding to assist in the upkeep of the road, and that while the logging companies do not contribute to this upkeep, staff will investigate the damage and the possibility that the trucks are overloaded.

Cr Hamling asked after the status of repairing Clergate Road and requested Minister Toole be taken for a drive to see its poor condition.

The Director Technical Services stated that Council was unsuccessful in the last round of fixing country roads funding which was being offset by a co-contribution from the successful Federal Government funding under the Heavy Vehicle Safety and Productivity Program.

Cr Hamling asked for information on the swim safety lessons for schools.

The Director Community, Recreation and Cultural Services stated that there were currently 1,300 children enrolled in Learn to Swim at the Orange Aquatic Centre per week. As the school swimming carnival period is nearing an end it is anticipated that the pilot will commence in term 2 for those schools who expressed an interest in the program.

Cr Nugent asked if there was a Tender out for the removal of trees at the Orange Regional Sporting Precinct and asked if this was a public document.

The Director Community, Recreation and Cultural Services stated that there is currently a Request for Quotation (RFQ) in the market. No one has been engaged. That there is a process of Heritage Approvals before it can proceed but having the RFQ process completed will save 4-6 weeks, should approval be given to proceed, so it is essentially a timing issue. The RFQ is a public document and was advertised in both the local and Sydney newspapers.

**Cr Romano left the chamber with the time being 815pm and returned with the time being 8.18pm.**

5.5 Wood Bank Usage

TRIM Reference: 2021/453

RESOLVED - 21/082 Cr G Taylor/Cr J Whitton

That Council resolves to:

1 Consider funding for the current financial year of $10,000.

2 Consider an annual allocation as part of the budget process.

3 That Council approach the State and Federal Government for additional funding sources to assist with providing the Wood Bank.

For: Cr Kidd, Cr Duffy, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Nil

Absent: Nil

Cr Nugent asked if there was support for other heating options as the original resolution stated a wood and heating bank.

The Director Community, Recreation and Cultural Services stated that there are both Federal and State Government assistance packages for Gas and Electricity as well as local charities providing vouchers to assist those in need in obtaining or maintaining their heating services.

5.6 National General Assembly - Orange City Council Motions 2021

TRIM Reference: 2021/493

RESOLVED - 21/083 Cr K Duffy/Cr J Whitton

That Council agree that motions on the following subject be submitted to the National General Assembly 2021:

· Licence Agreements for television networks to provide Local News Outlets.

· Funding to mitigate and adapt to current and long term impacts of climate change.

· Take action to make local communities and workplaces safer and more inclusive for Women.

For: Cr Kidd, Cr Hamling, Cr McRae, Cr Mileto, Cr Munro, Cr Nugent, Cr Romano, Cr Taylor, Cr Turner, Cr Whitton

Against: Cr Duffy

Absent: Nil

6 Closed Meeting

6.1 Road Closure Application and proposed purchase of land - Forest Road

TRIM Reference: 2021/321

This Item was Withdrawn.

The Meeting Closed at 8.53PM

This is Page Number 25 and the Final Page of the Minutes of the Ordinary Meeting of Orange City Council held on 16 March 2021.

Council Meeting 6 April 2021

5.2 Draft Delivery Program 2018/2019 to 2021/2022 and Operational Plan 2021/2022

RECORD NUMBER: 2021/452

AUTHOR: Jason Cooke, Chief Financial Officer

EXECUTIVE Summary

Council will recall the stated intent of last year’s budget; a 4 year intent:

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

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

The Draft Budget 21/22 has been developed through consultation with the community via the Community Strategic Plan, with Councillors over the last 6 months and with Managers and Directors via a budget bid process.

The Draft Budget 21/22 will continue the trend of deficit budgets to a lesser extent as Council moves towards a balanced budget in 2023/24. Council makes this decision to continue the stimulus impact on the City.

The Draft Budget 21/22 includes a capital spend of $91.3M in 2021/2022 and $232.1M over the four year period 2021/2022 to 2024/2025.

Whilst significant borrowings are proposed in the draft budget, Council will not breach the Debt Service Cover Ratio recommended benchmark of 2.

Significant projects previously included in the proposed four year spend to 2024/25 include:

FutureCity CBD upscale and renewal	Orange Regional Conservatorium	Over $2.1M on footpath rehabilitation and construction
Airport upgrades and improvements	Playground upgrades	Mount Canobolas Mountain Bike Trail Environmental assessment
Sporting Precinct development	Glenroi Oval master plan implementation	Renewable projects
Forest Rd East Fork railway bridge duplication	Clergate Rd – NDR to Canobolas Wooltop (Stage 2)	Forest Rd – Cadia Rd to Boundary
Huntley Rd progressive upgrades	Shiralee Rd pavement upgrading	Woodward St road under rail
McLachlan St bridge	Blackman’s Swamp stormwater harvesting Stage 2	Gosling Creek dam upgrade investigation
East Orange Channel - $1.4M	Southern Feeder Rd works	Roundabout works
Emus sewer storage - $1.3M	Roundabout Escort Way & Ploughmans Lane - $4M	Roundabout Moulder and Peisley streets - $850K
March St underpass	Double Storey Carpark	Aquatic Centre Expansion and Improvements
Industrial Land Projects	Shiralee water supply augmentation	Stop and Rest Eastern Gateway
Orange Civic Theatre - $6M	Advancing Shiralee Community Infrastructure - $1.6M	Waste Cell 4 construction
Lake Canobolas pipeline	Sewer aeration upgrade	Sewer Cadia UV design & construction - $4.4M

New Councillor bids that were included in budget considerations are outlined in the table below:

Councillor bids	$
Electric Vehicle Fleet Transition Strategy - Initial Development	$5,000
Sculpture in the Garden Event	$20,000
Keeping Cats Safe at Home' project	$10,000
Ridley Oval/East Orange Creek	$10,000
Advanced tree program	$500,000
Banjo Paterson Park	$200,000
Robertson Park and Cook Park	$250,000
Fairy lights - Peisley to Hill	$20,000
Bathurst Rd entrance and Roundabouts	$100,000
Verge Garden Program	$15,000
Childcare/Daycare	$50,000
International Women's Day Event	$10,000
Footpaths	$150,000
Picket fence Riawena Oval	$100,000
Old Orange Cemetery	$150,000
Esso Park	TBD
Stop & Rest	$500,000
Chairlift	$150,000
SJBP lighting	TBD
SJBP canteen	TBD
Dog leash areas	TBD
Wood Bank	$10,000

COVID-19

Given the COVID-19 situation is still somewhat fluid, variations through both additional funding and additional expenditure may be required to the Budget throughout 2021/22. The Council is able, through its quarterly variation process, to accommodate changes to the Budget moving forward, and it is expected that this will be used again to bring forward projects or make adjustments for COVID-19 impacts that are unable to be incorporated into the Annual Budget at 1 July 2021.

Integrated Planning and Reporting

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

1 Draft Operational Plan 2021/2022 under the current Delivery Program 2018/2019 to 2020/2021 (noting that the current Delivery Program has been extended by one year as the Local Government election will now be in September 2021). This includes:

a 2021/22 Draft Budget

b 2021/22 Draft Statement of Revenue Policy

c 2021/22 Draft Fees and Charges

2 Resourcing Strategy – Long Term Financial Plan 2021/22 to 2030/31

3 Resourcing Strategy - Workforce Management Plan 2021/2022 to 2023/2024 (although this resourcing strategy is completely updated when the new Community Strategic Plan and Delivery Program are created after the next Local Government election, minor changes are made on an annual basis).

The Annual Budget 2021/22 must be approved by the Council no later than 30 June 2021.

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

Following exhibition, management will revise the Budget taking into account Councillor and community priorities.

Link To Delivery/OPerational Plan

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

Financial Implications

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

Policy and Governance Implications

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

It is proposed to exhibit the plans for 28 days from 7 April 2021. Following exhibition, it is intended that community submissions and the draft budget documents will be brought back to a meeting on 1 June 2021.

Recommendation

That Council resolves:

1 To place the draft Operational Plan 2021/2022 and draft Budget 2021/2022 (including draft Statement of Revenue Policy 2021/2022 and draft Fees and Charges 2021/2022) and updated draft resourcing strategies Long Term Financial Plan 2021/2022 to 2030/2031 and Workforce Management Plan 2021/2022 to 2023/2024 and Asset Management Strategy 2022-2041 on public exhibition for a minimum of 28 days.

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

further considerations

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

Service Delivery

The Delivery/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.

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.

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:

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

Community Strategic Plan (Term of Council)

“The Community Strategic Plan represents the highest level of strategic planning undertaken by a local council. All other plans developed by the council as part of the Integrated Planning and Reporting framework must reflect and support the implementation of the Community Strategic Plan.

The Community Strategic Plan should identify the main priorities and aspirations of the community, providing a clear set of strategies to achieve this vision of the future. Building the Community Strategic Plan takes time and must involve a whole-of-community engagement process.

The Community Strategic Plan must be based on the social justice principles of access, equity, participation and rights. It should also address the quadruple bottom line (social, environmental, economic and civic leadership) issues. It is recommended that a council uses a multi-disciplinary team to manage and implement the integrated planning process”.

The Council approved the Community Strategic Plan in 2018 following extensive community consultation.

Delivery Program (Term of Council)

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

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

Operational Plan (1 year)

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

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

EXAMPLE OF HOW THE FRAMEWORK OPERATES

The 2018 Community Strategic Plan sets out an example of how the framework is implemented.

Community Strategic Plan 2018 Objective

Healthy and active community that is supported by sport and recreational infrastructure.

Delivery Program (Action)

Identify and deliver sport and recreation facilities to service the community into the future.

Flowing from the above, the other planning documents need to reflect the projects and activities that are proposed to be undertaken by Council each year, and the flow-on impacts to the budget, staff and long term financial capacity. They also need to reflect the actual costs of meeting the legislative obligations of Councillors to deliver core services (water, sewerage, waste, development applications) and other statutory obligations (e.g. WHS, EEO, Building Standards). For example, the action in the Delivery Program may be realised as follows:

Operational Plan

E.g. Seek State and Federal grant for Community Building X.

Asset Management Plan

This project will create an asset, and the costs of maintaining, repairing and replacing the asset must be included in the Asset Management Plans once the building is completed. As this will be a future cost to the Council and the community, the costs should be included in the Long Term Financial Plan and Annual Budget to ensure the Council is not taking on liabilities that it cannot afford in the future or unfairly passing costs to a future generation.

Workforce Management Plan

The operation of the facility will have an impact on staffing. The Workforce Management Plan must anticipate the likely skills, qualifications and experience the Council will need to operate and deliver the asset and services to be provided, including backend services such as IT, finance, building services, water and sewerage, corporate governance, audit, risk management, WHS etc. It needs to set out projected changes in technology, the employment market, staff satisfaction and other factors and the likely impact on the capacity of the Council to recruit and retain staff to deliver the project as well as ongoing core services, and propose actions to ensure the Council can demonstrate to the community that it can successfully deliver the project.

Long Term Financial Plan

The Long Term Financial Plan must include the Council’s anticipated costs in applying for funding (e.g. master planning, advocacy, legals, financial planning) and any expected Council capital co-contribution, as well as the operational costs of running the facility if approved (staff, depreciation, maintenance, asset renewal, contingencies) and any projected income to offset those costs (e.g. license for use of facilities, income from sales etc).

Draft Budget

The projected capital and operational income and expenditure for the development, construction and operation of the facility must be incorporated into the Budget for the years in which the income and expenditure is expected to accrue.

Rates, Charges and Fees

Rates, charges and fees for use of the facility may need to be incorporated in future years, and other rates and charges may need to be reviewed where expenditure is expected to exceed revenue.

PROPOSED 2021/22 APPROACH

The Chief Executive Officer determined the framework for the review of the Integrated Planning and Reporting documentation.

Community Strategic Plan

As the Community Strategic Plan was approved after community consultation in 2018, and no proposals or recommendations have been made for changes at this time; and because of the now extended election cycle it is recommended that the Plan be re-endorsed for the 2021/22 year (noting the Local Government Election of September 4).

Delivery Program

Minor updates have been made (e.g. CBD upgrade has included reference to FutureCity as the working title).

Operational Plan

Changes to the Operational Plan have been made to reflect 2021/22 priorities (see below).

Resourcing Strategy

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

The Resourcing Strategy must include:

· Asset Management Strategy

· Workforce Management Plan

· Long Term Financial Plan

Asset Management Strategy

The historic approach to the Asset Management Strategy is to submit this for adoption following approval of the draft delivery program and operational plan. Under the current budget framework, this influences the amount of money that may be available to fund asset management.

Long Term Financial Plan

The Long Term Financial Plan covers a ten year span as required by the Act. The Plan is re-set each year and projections regarding income and expenditure are then updated for the following ten years. The Long Term Financial Plan is based on a series of assumptions about future income and expenditure.

Workforce Management Plan

The Workforce Management Plan is required to be a rolling four year plan. It considers workplace issues such as staff sentiment, succession planning, training, future staffing needs, the impact of technology on future staffing and capabilities, the optimal organisation of staffing to deliver services and efficiency, and the workforce profile required in order to provide input into the structure and management of the Council’s operations.

2021/22 Rates

Tables in this report include the current financial year (2020/21) original budget as adopted in the current Delivery Program and Operational Plan.

A 2 per cent increase in rates was decided by IPART for General Rates (Residential, Business, Farmland). The overall impact of this increase on an average assessment is:

1 Residential assessments will increase by $32.35, and total rates and charges $1.12 per week (or $58.31 per annum) which is 2.36 per cent.

2 Business assessments will increase by $96.96 or $1.86 per week.

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

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

Fund	2020/21	2021/22	2022/23	2023/24	2024/25
Water	2.5%	2.0%	2.0%	2.0%	2.0%
Sewer	2.5%	2.5%	2.0%	2.0%	2.0%

Pensioners receive a statutory reduction of $250 off their General Rates & $87.50 off both water and sewer charges. Council also offers a voluntary rebate of either ten per cent or five per cent of rates and charges. The additional voluntary rebate costs Council approximately $477,000 per annum.

2021/22 Operating Position

The draft Delivery/Operational Plan proposes a consolidated operating position (before capital) deficit of $666,834 for 2021/22. The deficit position is due mainly to a decrease in the expected income received from Council investments in a constrained low interest environment.

The operating position shows how Council proposes to expend money on items other than those classified as capital. Operating expenditure is Council’s year to year expenditure on providing services.

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

Operating Result (by Fund)
	2020/2021 Dec Revised	2021/2022 Proposed	2022/2023 Proposed	2023/2024 Proposed	2024/2025 Proposed
General Fund	3,527,818	2,064,686	(1,307,768)	(1,567,918)	(1,542,069)
Water Fund	34,975	(140,617)	(3,970)	(144,999)	(103,834)
Sewer Fund	(790,125)	(1,257,235)	(1,269,176)	(1,249,870)	(1,139,389)
Total (All Funds)	2,772,668	666,834	(2,580,914)	(2,962,787)	(2,785,292)

A surplus operating position is an indicator of financial sustainability. A surplus result for Council is indicated by red bracketed numbers in the table above and shows the expected deficit result for 2021/22.

2021/22 Overall Position (including capital)

The draft Delivery/Operational Plan proposes a consolidated overall position (including capital) deficit of $1,671,939 for 2021/22. 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:

Overall Result (by Fund)
	2020/2021 Dec Revised	2021/2022 Proposed	2022/2023 Proposed	2023/2024 Proposed	2024/2025 Proposed
General Fund	4,491,077	3,271,120	1,245,211	261,899	910,863
Water Fund	(1,272,300)	(250,204)	(1,516,210)	(1,705,877)	529,365
Sewer Fund	(1,668,312)	(1,348,977)	(28,433)	(2,356,480)	(1,887,252)
Total (All Funds)	1,550,465	1,671,939	(299,432)	(3,800,458)	(447,024)

A surplus result for Council is indicated by red bracketed numbers in the table above and shows the expected deficit result for 2021/22.

The capital budget proposes to deliver a combined total of projects of $91.3M in 2021/22. This expenditure is distributed across the funds and the expenditure levels over the subsequent three years are also shown:

Fund	2020/2021 Original Adopted	2021/2022 Proposed	2022/2023 Proposed	2023/2024 Proposed	2024/2025 Proposed
General	58,779,492	61,189,943	43,346,359	24,051,692	35,683,799
Water	14,087,863	18,905,609	10,001,068	2,696,672	4,982,329
Sewer	6,240,110	11,199,860	6,264,617	11,071,345	2,730,855
Consolidated	79,107,465	91,295,412	59,612,044	37,819,709	43,396,983

Over the next four years a total capital spend of $232.1M is proposed. Council and Staff have proposed an ambitious works program that will see the following projects in 2021/22 for completion over the four year period 2021/2022 to 2024/2025.

FutureCity CBD upscale and renewal - $15M (part of a 2 year $30M project). Council has committed $5M in 2021/22 to this project.	Orange Regional Conservatorium - $20M over 2 years. Council has committed $15M to this project	Over $2.1M on footpath rehabilitation and construction
$2.75M in Airport upgrades and improvements	Playground upgrades - $540K	Mount Canobolas Mountain Bike Trails - $1.5M
Sporting Precinct development - $25M all from NSW Government	Glenroi Oval master plan implementation - $125K	Renewable projects - $500K per year for 2 years
Forest Rd East Fork railway bridge duplication - $4.8M	Clergate Rd – NDR to Canobolas Wooltop (Stage 2) - $2.8M	Forest Rd – Cadia Rd to Boundary $800K per year for four years
Huntley Rd progressive upgrades - $1.9M	Shiralee Rd pavement upgrading - $1.1M	Woodward St road under rail - $4M
McLachlan St bridge - $1.1M	Blackman’s Swamp stormwater harvesting Stage 2 - $4.6M (emergency water project 50% funded by NSW Government)	Gosling Creek dam upgrade investigation - $7M
East Orange Channel - $1.4M	Southern Feeder Rd works - $20M	Sewerage Treatment Plant inlet works upgrade - $7M
Emus sewer storage - $1.3M	Roundabout Escort Way & Ploughmans Lane - $4M	Roundabout Moulder and Peisley streets - $850K
March St underpass - $3.5M	Double Storey Carpark - $4.5M	Aquatic Centre Expansion and Improvements - $3.75M
Industrial Land Projects – $2.5M	Shiralee water supply augmentation - $7.2M	Wade Park Grandstand - $1M
Orange Civic Theatre - $6M	Advancing Shiralee Community Infrastructure - $1.6M	Waste Cell 4 construction - $2M
Lake Canobolas pipeline - $1M	Sewer aeration upgrade - $3.8M	Sewer Cadia UV design & construction - $4.4M
Lake Canobolas sewer upgrade - $1.4M	North Orange sewer strategy - $1.2M	Stop and Rest Eastern Gateway - $750K

During the budget process, Councillors were asked for initiatives within the CSP framework to be considered within the Draft budget framework for exhibition. These are included with comment in the table below.

Councillor bids	Quantum	Rationale from Councillor	Staff Comment	Included/Not included
Electric Vehicle Fleet Transition Strategy - Initial Development	$5,000	Electric vehicles are the way of the future with the likes of General Motors aiming to stop selling fossil-fuelled cars by 2035. EVs also continue to drop in price while increasing in efficiency. Council has one EV at present and should be making plans to transition to increase the EV fleet in line with societal trends.	Parking officer has EV. Hybrid and EV options are available for fleet vehicles. A second EV Nissan Leaf will arrive in April. CEO has sourced a free strategy from a consultant.	Not included at this point
Sculpture in the Garden Event	$20,000	The Street Art component of the Future City project is exciting and very welcome. But other parts of the city would benefit from public art as well, e.g. Botanic Gardens and Lake Canobolas. The Sculpture in the Gardens event currently happening in Wollongong Botanic Gardens provides an example of one such initiative.	Will review as part of master plans for botanic gardens and Lake Canobolas	To be included in a future quarterly review once accurate event scope and costing is sourced
Keeping Cats Safe at Home' project	$10,000	This is an RSPCA project that could supply $90K of funding to Council to provide programs to control feral cats and nuisance domestic cats, including education and desexing programs. In order to apply, Council has to commit $10K to the program.	To be discussed in Companion Animal Community Committee	Included
Ridley Oval/East Orange Creek	$10,000	Bollards to stop illegal MV and motorbike activity, seats and tree planting	Large oval which would cost much more than $10K. Keeping motorcycles out would require full fencing. Recently put seat at Ridley Oval	Included as a concept but to be included in a future quarterly review once accurate method and costing is sourced
Advanced tree program	$500,000	Get all dieback trees removed and replaced	Current budget for tree replacements is approx. $100K	Included
Banjo Paterson Park	$200,000	Self-contained toilets, walking track, replacement trees from 1980s APEX plan, interpretive signage		Included
Robertson Park and Cook Park	$250,000	Maintenance of rotundas		Included and will seek 50% heritage funding
Fairy lights - Peisley to Hill	$200,000	Expand by one block either side of current program	Is part of FutureCIty budget in 21/22	Already included
Bathurst Rd entrance and Roundabouts	$100,000	Landscape triangle entrance, revamp all roundabouts	Landscaping being completed in 20/21. Roundabouts on a cyclical program	Some extra budget added - $50,000
Verge Garden Program	$15,000	Community program to encourage verge gardens across LGA, particularly within urban areas of Orange. This would be a new program (have briefly discussed with CEO). e.g. 3 types of verge gardens: • Water wise plants (no water gardens) • Food production • Bees & Pollinators Enough funds to enable: • Admin to set up registration of verge gardens/inquiries by individual landowners • Update to council website and promotional materials re: verge/garden rules • Staff visits to support community education and engagement for those who want to make a verge garden (what to plant/not to plant) as well as access considerations (don’t block access for prams/wheelchairs, don’t plant cacti or highly allergenic/poisonous plants) • Annual spring and/or summer competition for verge gardens (individual and neighbourhood) Promotion & Prizes • Potentially include in Tidy Towns awards		Included
Childcare/Daycare	$50,000	• Increase capacity/program support for economic development and workforce support • Increase family daycare training/new program • Childcare centres – review and expand capacity in priority areas for population (Low SES or low education) • Enable return to work for parents (economic contribution for key industry workers who may be priced out of commercial childcare market, or have trouble accessing due to limited vacancies)	Council commenced a program to support the establishment of family daycare. Market determining and meeting the need for additional services. 2 DA's lodged with Council in at the moment re: child care centres. New facility being constructed in west Orange on Cnr of Molong road and NDR. Government support available to community in need to support attendance	Not included
International Women's Day Event	$10,000	Council to host a free community event on IWD 2022 including a visiting guest speaker, held in an appropriate facility (e.g. Civic Theatre) and have it planned & run by council staff. Provide funds to do it well.		Included
Footpaths	$150,000	Maintain current levels of funding at a minimum for new and existing footpath replacement, and repairs. This is still a complaint from many about footpaths in the LGA. This yr $900K versus 21/22 draft of $750K. Look to do Tobruk Crescent, Moulder Woodward/Sampson Northern side, OPS Moulder from Anson to Sale South side and Sale and Anson near OPS		Included
Picket fence Riawena Oval	$100,000			Included as a concept but to be included in a future quarterly review once accurate method and costing is sourced
Old Orange Cemetery	$100,000	Fence, $50K headstones, CCTV	Staff have bid in for fencing	Included with a 50% grant assumption
Esso Park	$50,000	Cameras and lights	Scoping plan after recent Council resolution	Included
Stop & Rest	$500,000	Finish $750K project using $250K secured from Resources for Regions		Included
Chairlift	$150,000	Seed funding for concept design		Was resolved to be part of the MTB project. Included as a concept but to be included in a future quarterly review once accurate method and costing is sourced
SJBP		Replace 9 lights on fields 1-4		Included as a concept but to be included in a future quarterly review once accurate method and costing is sourced
SJBP		Canteen refurb on Huntley Rd side (not completed in current year)	Most of remaining money from toilet refurb used on front veranda cover in 20/21	Included as a concept but to be included in a future quarterly review once accurate method and costing is sourced
Dog leash areas		Install bench seats with shade cover at all dog leash free areas in Orange	Refer to Companion Animals Community Committee to consider within their $10K annual budget	Included as a concept but to be included in a future quarterly review once accurate method and costing is sourced
Wood Bank	$10,000			Included

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

The funding sources for the Long Term Financial Plan anticipate additional loan funding required for the following purposes:

· 2020/21 $1M Regional Art Gallery extension

· 2020/21 $1.5M Southern Feeder Road

· 2020/21 $5M Future City project

· 2021/22 $5M Future City project

Funding through Land Sales

Land Sales will form an important component of the underpinning of the Budget. Key sites that will be sold include:

· Old Sale Yards site;

· Clergate Road Industrial blocks;

· DV centre blocks;

· Old Eades House;

· Narrambla blocks;

· Barkers Cottage Lucknow;

· 1 Summer Street; and

· West End Former Orange Base Hospital site.

To date staff have exchanged or settled on properties in the current year for $1.7 million with another property optioned in the first half of 21/22 for $316k. Another property will settle in the first quarter 21/22 for $508k. A Clergate Industrial land sale for $1.5 million will likely settle in the first quarter of 21/22.

The 21/22 year has $7.9 million budgeted in sales followed by $3.9 million in 22/23 and $2.9 million in 23/24.

Contingent Funding Approach and Proposed Loans

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

While it would be ideal to procure all co-funded projects, it may not happen, and while seeking such funding, Council revenue is reserved for the projects that may or may not occur.

In this regard, the draft 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.

Attachments

1 DRAFT - Operational Plan 2021/2022, D21/10551 ⇩

2 DRAFT - Budget 2021/2022, D21/17338 ⇩

3 DRAFT - Fees and Charges 2021/2022, D21/17352 ⇩

4 DRAFT - Long Term Financial Plan 2021-2022 to 2030-2031, D21/17497 ⇩

5 DRAFT - Workforce Management Plan Strategy 2021/2022, D20/70949 ⇩

6 DRAFT - Asset Management Strategy 2021/2022, D21/17423 ⇩

7 FOR ADOPTION - Strategic Policy - ST009 - Revenue and Pricing (April 2021), D21/17602 ⇩

8 FOR ADOPTION - Strategic Policy - ST007 - Asset Management (April 2021), D21/17599 ⇩

Council Meeting 6 April 2021

5.4 Orange Harness Racing Club Funding

RECORD NUMBER: 2021/578

AUTHOR: Nick Redmond, Acting Director Corporate and Commercial Services

EXECUTIVE Summary

At the Council meeting on 19 March the following was resolved:

RESOLVED - 21/080 Cr R Kidd/Cr R Turner

That a report on funding to Orange Harness Racing be provided to Council including what took place in discussions with NSW Harness Racing.

Following its meeting held 15 November 2016, Council resolved to enter into a performance based Funding Agreement with Orange Harness Racing Club (OHRC) of $20,000 (ex GST) per (financial) year, paid in two equal amounts, for a 10 year period commencing 2016/2017, such Funding Agreement terms to provide that OHRC to sponsor two harness racing events at Towac Park, Orange and Council being acknowledged as the sponsor of the events.

This report provides:

1 Chronology of events relating to OHRC’s conformance with the terms of the Funding Agreement including all Council reports and subsequent Council Resolutions.

2 A summary of all payments made to OHRC to date.

Link To Delivery/OPerational Plan

The recommendation in this report relates to the Delivery/Operational Plan strategy “15.2 Collaborate - Support community organisations and groups to deliver services and programs”.

Financial Implications

The funding has been adopted in the Delivery Operational Plan. If the recommendation of this report is supported, $30,000 will be added back to the donations budget.

Policy and Governance Implications

Nil

Recommendation

That Council resolves:

1 That the report by the Acting Director Corporate and Commercial Services be acknowledged.

2 That the first and second funding instalment payments of $10,000 plus GST each for the 2020/2021 financial year be cancelled.

3 That the first funding instalment payment of $10,000 plus GST for the 2021/2022 financial year be cancelled.

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

further considerations

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

SUPPORTING INFORMATION

Following consideration of report 2016/2661 (attached), at its meeting held 15 November 2016, Council resolved as follows:

5.6 Harness Racing Relocation

TRIM Reference: 2016/2661

RESOLVED - 16/476 Cr K Duffy/Cr R Turner

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

2 That Council enter a performance based funding agreement with Orange Harness Racing of $20,000 (ex GST) per year, paid in two equal amounts, for a 10 year period commencing 2016/17, to sponsor two harness racing events per year at Towac Park with Council being acknowledged as the sponsor of the events.

3 That funding in 2016/17 be from the advertising budget as the donations budgets are fully expended.

4 That in 2017/18 to 2025/26, funding be allocated from the donations budget.

Council subsequently entered into a Funding Agreement with Orange Harness Racing Club (OHRC) on 21 December 2016 which incorporated the provisions of item 2 of Council’s resolution of 15 November 2016. ORHC was compliant with the terms of such Funding Agreement up until the end of 2018/2019 year.

Council received advice from OHRC on 10 December 2019 that the race meetings for the 2019/2020 year would be held at Towac Park on 2 and 9 February 2020. However, in January 2020, OHRC advised Council that it would need to relocate the race meetings scheduled for 2 and 9 February 2020 to Bathurst for the following reasons:

1 Poor condition of the Towac Park racing surface as a result of the ongoing drought and the unavailability of any irrigation water to improve the racing surface.

2 Decision by Racing NSW stewards on safety and animal welfare issues.

Council subsequently received a letter from OHRC dated 2 March 2020 detailing the reasons why Council should honour the second instalment payment of $10,000 plus GST for the financial year ended 30 June 2020. A copy of such letter is attached.

Following consideration of report 2020/440 (attached), at its meeting held 17 March 2020 Council resolved as follows:

5.7 Orange Harness Racing Club - Funding Agreement

TRIM Reference: 2020/440

Cr J McRae declared a less than significant non-pecuniary interest in this item as a family member is involved with the club, left the Chamber, and did not participate in the voting or debate on this item.

RESOLVED - 20/082 Cr R Turner/Cr S Munro

That Council resolves:

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

2 That the second funding instalment payment of $10,000 plus GST for the 2019/2020 financial year be cancelled.

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

Following consideration of report 2020/2156 (attached), at its meeting held 3 November 2020 Council resolved as follows:

5.2 Orange Harness Racing Funding

TRIM Reference: 2020/2156

Cr McRae declared a Significant Non-Pecuniary interest in this item as a family member is the president of Orange Harness Racing, left the meeting and did not participate in discussion or voting on this item.

RESOLVED - 20/403 Cr R Kidd/Cr G Taylor

That Council, through the Chief Executive Officer, hold discussions with Orange Harness Racing to address the agreement.

Outcome of discussions with OHRC on 23 March 2021 were as follows:

§ 2020/2021 race meetings were programmed to be conducted at Towac Park, Orange on 7 and 14 February 2021.

§ However, Orange Harness Racing advised due to the decision by the General Manager of Racing Orange not to allow the meetings to be conducted at Towac Park on the allocated dates, both meetings were transferred to Bathurst.

§ The reason for not allowing the Harness Racing meetings to be conducted at Towac Park was to protect the racing surface from any possible damage prior to the gallop meeting programmed for Saturday 20 February 2021.

§ Orange has been allocated two race dates in February 2022 by Harness Racing NSW.

Council has paid a total $70,000 plus GST to OHRC to date. A summary of payments is provided in the table below:

Financial Year	Funding Instalment	Instalment Amount GST excl	Date paid	Funding Agreement Compliance (2 race meetings held - Towac) (Council sponsor acknowledgement)
1/7/2016 - 30/6/2017	Instalment 1	$10,000.00	31/12/2016	Yes (meetings 5/2/2017 & 12/2/2017 – Towac)
1/7/2016 - 30/6/2017	Instalment 2	$10,000.00	01/03/2017	Yes (meetings 5/2/2017 & 12/2/2017 – Towac)
1/7/2017 - 30/6/2018	Instalment 1	$10,000.00	20/12/2017	Yes (meetings 21/1/2018 & 4/2/2018 – Towac)
1/7/2017 - 30/6/2018	Instalment 2	$10,000.00	28/03/2018	Yes (meetings 21/1/2018 & 4/2/2018 – Towac)
1/7/2018 - 30/6/2019	Instalment 1	$10,000.00	11/01/2019	Yes (meetings 3/2/2019 & 10/2/2019 – Towac)
1/7/2018 - 30/6/2019	Instalment 2	$10,000.00	26/02/2019	Yes (meetings 3/2/2019 & 10/2/2019 – Towac)
1/7/2019 - 30/6/2020	Instalment 1	$10,000.00	12/12/2019	No (meetings 2/2/2020 & 9/2/2020 - Bathurst)
1/7/2019 - 30/6/2020	Instalment 2	$10,000.00	Not paid	No (meetings 2/2/2020 & 9/2/2020 - Bathurst)
1/7/2020 - 30/6/2021	Instalment 1	$10,000.00	Not yet paid	No (meetings 7/2/2021 & 14/2/2021 - Bathurst)
1/7/2020 - 30/6/2021	Instalment 2	$10,000.00	Not yet paid	No (meetings 7/2/2021 & 14/2/2021 - Bathurst)

In light of the above advice from OHRC received 23 March 2021 that both race meetings for the 2020/2021 year were held on 7 and 14 February 2021 in Bathurst (non-compliance with the Funding Agreement), it is recommended that the first and second funding instalment payment of $10,000 plus GST each for the 2020/2021 year be cancelled.

Referring to the above table, Council paid the first instalment payment of $10,000 plus GST for the 2019/2020 year on 12 December 2019 (following confirmation from OHRC of the scheduled Orange race meeting dates were to be held on 2 and 9 February 2020 at Towac Park in Orange). Due to subsequent advice from OHRC (attached letter dated 2 March 2020) that the race meetings for 2019/2020 were subsequently transferred to Bathurst, it is also recommended that the first funding instalment payment of $10,000 plus GST for the 2021/2022 year be cancelled.

In relation to the matter arising detailed at the start of this report, Council had a short phone conversation with Harness Racing NSW CEO Mr John Dumesny and advised of the earlier resolution that the funding would be withheld as the race meetings did not proceed in Orange as per the requirements of the agreement.

Council will continue to liaise with the Orange Harness Racing Club on meetings for Orange and the requirements of the agreement. Relating to a separate but connected matter arising regarding the former Harness Racing track site at Perc Griffith Way Council developed a request for quotation in February to undertake demotion and other works at the site. The work commenced on 24 March.

Council is also in discussions with the Orange Kart Club around possible expansion of its footprint. This is dealt with in a separate report to Council.

Attachments

1 Report - Orange Harness Racing Club - Funding Agreement - 15 November 2016 (2016/2661), D20/65895 ⇩

2 Letter - from Orange Harness Racing Club - race meetings held in Bathurst - dated 2 March 2020, D20/13121 ⇩

3 Report - Orange Harness Racing Club - Funding Agreement - 17 March 2020 (2020/440), D21/16577 ⇩

4 Report - Orange Harness Racing Club - Funding Agreement - 3 November 2020 (2020/2156), D21/17023 ⇩