Finance Policy Committee
Agenda
1 June 2021
Notice is hereby given, in accordance with the provisions of the Local Government Act 1993 that a Finance Policy Committee meeting of ORANGE CITY COUNCIL will be held in the Council Chamber, Civic Centre, Byng Street, Orange on Tuesday, 1 June 2021.
David Waddell
Chief Executive Officer
For apologies please contact Administration on 6393 8218.
Finance Policy Committee 1 June 2021
2.2 Future City Assistance Fund - Round 1 (March 2021) - Post Exhibition Report
2.3 Adoption of Operational Plan 2021/2022 and Budget 2021/2022
1 Introduction
1.1 Declaration of pecuniary interests, significant non-pecuniary interests and less than significant non-pecuniary interests
The provisions of Chapter 14 of the Local Government Act, 1993 (the Act) regulate the way in which Councillors and designated staff of Council conduct themselves to ensure that there is no conflict between their private interests and their public role.
The Act prescribes that where a member of Council (or a Committee of Council) has a direct or indirect financial (pecuniary) interest in a matter to be considered at a meeting of the Council (or Committee), that interest must be disclosed as soon as practicable after the start of the meeting and the reasons given for declaring such interest.
As members are aware, the provisions of the Local Government Act restrict any member who has declared a pecuniary interest in any matter from participating in the discussion or voting on that matter, and requires that member to vacate the Chamber.
Council’s Code of Conduct provides that if members have a non-pecuniary conflict of interest, the nature of the conflict must be disclosed. The Code of Conduct also provides for a number of ways in which a member may manage non pecuniary conflicts of interest.
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Recommendation It is recommended that Committee Members now disclose any conflicts of interest in matters under consideration by the Finance Policy Committee at this meeting. |
2.1 Request for Financial Assistance - Event Sponsorship Funding Round 1 - Events 1 July to 30 September 2021
RECORD NUMBER: 2021/1080
AUTHOR: Sharon D'Elboux, Manager Business Development
EXECUTIVE Summary
Council has received two applications for Event Sponsorship round 1 2021/2022 for events to be held in Orange between July and September 2021.
This report is a summary of these applications now for Councils consideration.
Link To Delivery/OPerational Plan
The recommendation in this report relates to the Delivery/Operational Plan strategy “11.2 Prosper - Develop and attract a variety of events, festivals, venues and activities for locals and visitors, ensuring accessibility for all”.
Financial Implications
Council's budget for the Event Sponsorship Program for the 2021/22 financial year is $100,000.
Policy and Governance Implications
Council can assist other organisations financially (in cash or in kind) in accordance with section 356 of the Local Government Act 1993.
Council's Strategic Policy - ST144 - Event Sponsorship Program and its related Event Sponsorship Program Guidelines are used to assess applications for Event Sponsorship.
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That Council resolves: 1 That funding of $7,000 be made from the Event Sponsorship Program to Rotary Club of Orange Inc. for the Orange Sustainable Living Expo Event. 2 That funding of $1,000 be made from the Event Sponsorship Program to Dairy Hill Designs for the Artwork Orange Pop Up Exhibition Event. 3 That Council's intention to donate $1,000 to Dairy Hill Designs be placed on public exhibition for 28 days. 4 That Council's Chief Executive Officer be given delegation to finalise determination for the Event Sponsorship to Dairy Hill Designs post exhibition. |
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
In the Events Sponsorship Program Strategic Policy and guidelines, the following categories exist to support assessment of applications received:
|
Category |
Description |
|
Incubator Event Fund |
Provides seed funding to events in their first or second year of activity. Funding range is $1,000 to $5,000. |
|
Flagship Event Fund |
Identifies and assists the development of events that contribute to the unique character and culture of the Orange360 tourism region and can demonstrate that they attract overnight visitation. Funding range is $1,000 to $10,000. |
|
Event Development Fund |
Supports events that have already received funding from Council in previous years and can present a comprehensive strategy for future growth that includes the continued development of its tourism potential to drive overnight visitation to the event. Funding range is $1,000 to $10,000. |
|
Quick Response Event Fund |
Provides seed funding and/or support to events that occur as new and unplanned opportunity for Orange and have not met the funding rounds as outlined below. Funding range is $1,000 to $20,000. |
|
Application Number ESP21/1 |
Dairy Hill Designs |
|
Not for profit (yes/no) |
No |
|
Event name |
Artwork Orange Pop Up Exhibition |
|
Event date/s |
7 & 8 August 2021 |
|
Level of participation |
80-100 attendees per day |
|
Ticketed event |
No |
|
Amount requested |
$1,000 |
|
Category and Category range |
Incubator Event Fund - $1,000 to $5,000 |
|
Aligned with Community Strategic Plan |
Yes |
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Comment and recommendation Artwork Orange Pop Up Exhibition is an opportunity for community and visitors to see the works of up to 15 local artists specialising in 2D and 3D medium, with the theme of fire. A two day event, held at the Orange CWA Hall, Artwork Orange Pop Up Exhibition is part of the Orange Winter Fire Festival Program. This is a new application to Council and in line with policy, $1,000 is recommended. As the organiser of this event is not recognised as not-for-profit, exhibition of the proposed funding is required. |
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The below application is being assessed to ensure the event organisers have sufficient time to secure a high profile key note speaker.
|
Application Number ESP21/2 |
Rotary Club of Orange Incorporated |
|
Not for profit (yes/no) |
Yes |
|
Event name |
Orange Sustainable Living Expo 2021 |
|
Event date/s |
Sunday 24 October 2021 |
|
Level of participation |
Up to 2,000 people |
|
Ticketed event |
No |
|
Amount requested |
$7,000 |
|
Category and Category range |
Flagship Event Fund - $1,000 to $10,000 |
|
Aligned with Community Strategic Plan |
Yes |
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Comment and recommendation For the past 11 years, Orange Sustainable Living Week has been held. The last event in 2019 recorded 1800 people attending, with 21% visitation from outside of the Orange LGA. The 2021 event proposes to engage a high profile key note speaker, focusing on renewable energy, electric vehicle technology and reduction of carbon emissions. The event will also support and promote Orange City Councils Climate Change Management Plan 2021. This event will be held within the Orange Wine Month and included in the program. New event and in line with policy, $7,000 is recommended. |
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1 Flagship Event Fund Application - Sustainable Living Week 2021, D21/29167⇩
2 Incubator Event Fund Application - Pop Up Art Exhibition - Winter Fire Festival, D21/29165⇩
Attachment 1 Flagship Event Fund Application - Sustainable Living Week 2021
Attachment 2 Incubator Event Fund Application - Pop Up Art Exhibition - Winter Fire Festival
RECORD NUMBER: 2021/1115
AUTHOR: Nick Redmond, Acting Director Corporate and Commercial Services
EXECUTIVE Summary
The financial assistance applications for round 1 of the Future City Assistance Fund have been placed on public exhibition (Resolution 21/110 of 20 April 2020). There were no submissions received. It is recommended that Council approve the funding listed in the report.
Council has in place Future City Assistance Fund Guidelines to assess applications received under this Fund. Applications are open in several rounds in the current and the next one or two financial years. This report is the assessment of the applications received in Round 1 (March 2021).
Link To Delivery/OPerational Plan
The recommendation in this report relates to the Delivery/Operational Plan strategy “9.4 Preserve - Develop a vibrant civic and commercial precinct as a centre for the community”.
Financial Implications
The overall budget for Future City Assistance Fund is $200,000.00.
|
Future City Assistance Fund |
Actual/ committed |
Remaining balance |
|
Cost of technical guidance (October 2020) |
$2,220.00 |
$197,780.00 |
|
Round 1 (March 2021) |
$16,955.16 |
$180,824.84 |
|
TOTAL |
$19,155.16 |
$180,824.84 |
Policy and Governance Implications
Nil
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That Council resolves funding for Round 1 (March 2021) Future City Assistance Fund as follows: 1 To provide financial assistance of $4,622.40 (ex-GST) from the Future City Assistance Fund to Glenmace Pty Ltd (Refurbishment of Façade - 240-242 Summer Street, Orange). 2 To provide financial assistance of $3,387.76 (ex GST) from the Future City Assistance Fund to Ian MacLean and Elizabeth MacLean(Refurbishment of Façade - 169 Summer Street, Orange). 3 To provide financial assistance of $5,000.00 (ex GST) from the Future City Assistance Fund to Anson Street Plaza Owners Corporation (Refurbishment of Façade - 212 Anson Street, Orange). 4 To provide financial assistance of $3,945.00 (ex GST) from the Future City Assistance Fund to Graham Brindle and Judith Brindle (Refurbishment of Façade - 197 Summer Street, Orange). |
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
If the recommendation above is approved, the remaining balance of the Future City Assistance Fund is $180,824.84.
Summary
|
No |
Applicant |
$Request (ex GST) |
$Recommended |
|
FC1 |
Glenmace Pty Ltd (Bensons Café and vacant site next door) |
$4,622.40 |
$4,622.40 |
|
FC2 |
Ian MacLean and Elizabeth MacLean (Sheer Radiance site) |
$3,387.76 |
$3,387.76 |
|
FC3 |
Anson Street Plaza Owners Corporation |
$5,000.00 |
$5,000.00 |
|
FC4 |
Graham Brindle and Judith Brindle (Signature Travel Orange site) |
$3,945.00 |
$3,945.00 |
|
|
TOTALS |
$16,955.16 |
$16,955.16 |
The works proposed are consistent with guidelines. The guidelines do suggest that the proponents source two quotes, however it has been advised that there was some difficulty in securing quotations. This may have also limited the number of applications Council has received, which is the reasoning behind extending the application period to 31 December 2021 as part 5 of the above recommendation.
Level of Funding Available - the maximum level (on average) will be $5,000.00; greater funding to a maximum of $10,000.00 may be made if the circumstances warrant.
|
Application No FC1 |
Glenmace Pty Ltd |
|
Purpose of the Request Refurbishment of Front Façade - 240-242 Summer Street, Orange The work is above the awning of this building and will include painting of the front façade, removal of a sign and rendering of a column on the Commonwealth Bank side of the building. |
|
|
Amount Requested $4,622.40 (ex GST) - which is 50% of the total project cost of $9,244.80 (ex GST). Three quotations from Orange trades were attached to the application. |
|
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Comment and Recommendation In line with the policy. $4,622.40 (ex GST) recommended. |
|
|
Application No FC2 |
Ian MacLean and Elizabeth MacLean |
|
Purpose of the Request Refurbishment of Front Façade - 169 Summer Street, Orange The work will involve new paint application (including external brick/concrete work and decorative edge around window on ground and top level), roof-level trim and repainting and new electric, light-box sign. |
|
|
Amount Requested $3,387.76 (ex GST) - which is 50% of the total project cost of $6,775.53 (ex GST). Three quotations from Orange trades were attached to the application. |
|
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Comment and Recommendation In line with the policy. $3,387.76 (ex GST) recommended. |
|
|
Application No FC3 |
Anson Street Owners Corporation (SP 32554) |
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Purpose of the Request Refurbishment of Front Façade - 212 Anson Street, Orange The works include awning repair, refreshed façade, replaced lighting with LED lights, new light-box signage and repainted lettering. |
|
|
Amount Requested $5,000.00 (ex GST)- which is the maximum of the Fund and which is 47.58% of the total project cost of $10,507.73 (ex GST). Three quotations from Orange trades were attached to the application. |
|
|
Comment and Recommendation In line with the policy. $5,000 (ex GST) recommended. |
|
|
Application No FC4 |
Graham Brindle and Judith Brindle |
|
Purpose of the Request Refurbishment of Front Façade - 197 Summer Street, Orange The works involve painting of the façade. |
|
|
Amount Requested $3,945.00 (ex GST)- which is 50% of the total project cost of $7,890.00 (ex GST). Two quotations from Orange trades were attached to the application. |
|
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Comment and Recommendation In line with the policy. $3,945.00 (ex GST) recommended. |
|
In relation to the application for 169 Summer Street this is one of the properties damaged in the recent fire. While the recommendation to approve the funding Council will liaise with the property owner regarding insurance implications for the work.
1 Future City Assistance Fund Guidelines 2020/2021, D21/18689⇩
2 Application FC1 - 240-242 Summer Street, D21/18685⇩
3 Application FC2 - 169 Summer Street, D21/18686⇩
4 Application FC3 - 212 Anson Street, D21/18687⇩
5 Application FC4 - 197 Summer Street, D21/19171⇩
RECORD NUMBER: 2021/1034
AUTHOR: David Waddell, Chief Executive Officer
EXECUTIVE Summary
At the Council Meeting held on 6 April 2021 the following was resolved:
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RESOLVED – 21/117 Cr S Nugent/Cr S Munro 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 with the addition of a Picket Fence to Spring Hill Recreation Ground to be included in the Councillor Budget Bids. 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. |
The draft Delivery/Operational Plan, Long Term Financial Plan and Workforce Management Plan were placed on public exhibition from 7 April 2021 to 7 May 2021.
The 2021/22 budget online community consultation was hosted on the YourSay Orange site. (Reports attached) The budget site was promoted through a number of media releases through both traditional media and Council’s own social channels.
Arising from the exhibition period, Council has received 7 formal written submissions. A copy of each written submission has been provided as an attachment to this report.
The Delivery/Operational Plan delivers:
1. An operating deficit of $2.2 million for the general fund
2. $61.9 million in capital expenditure in the general fund
3. $1.9 million deficit in the overall cost to Council
4. Operating surpluses in water ($0.14 million) and sewer funds ($1.3 million) inclusive of capital works totalling $18.9 million and $11.2 million respectively in the 2021/22 financial year. Surpluses in these funds are accumulated to meet future capital costs as the city grows, modelled over a 30 year plan.
Council is again undertaking an ambitious program and has secured funding or seeking external funding to enable it to deliver projects for the Orange community. The $92 million in capital projects in 2021/2022 will provide continuation of employment to existing private contractor staff, stabilising their employment and giving them confidence to continue spending in the economy and in turn, keep others employed. The spending from the new and existing employees has a flow-on effect, creating additional employment, or consolidating marginal employment, in the sectors that Council cannot directly support in any substantial way (retail and services). These new and consolidated positions in the retail and service sectors provide additional stimulation to other parts of the economy.
A key long term effect of the capital projects is that the industry develops additional capacity to manage larger contracts, leading to local companies having the ability to win contracts that might otherwise have been won by larger industry players from out of the region.
Key projects 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 |
Councillor bids that have been included in the final 2021/22 budget are outlined in the table below:
|
Councillor bids |
$ |
|
Keeping Cats Safe at Home' project |
$10,000 |
|
Advanced tree program |
$500,000 |
|
Banjo Paterson Park |
$200,000 |
|
Robertson Park and Cook Park |
$250,000 |
|
Fairy lights - Peisley to Hill |
Future City |
|
Bathurst Rd entrance and Roundabouts |
$50,000 |
|
Verge Garden Program |
$15,000 |
|
International Women's Day Event |
$10,000 |
|
Footpaths |
$150,000 |
|
Picket fence Spring Hill |
$100,000 |
|
Old Orange Cemetery |
$100,000 |
|
Esso Park |
$50,000 |
|
Stop & Rest |
$500,000 |
|
Wood Bank |
$10,000 |
Grant Funding
A number of projects in the Capital Works program are partially reliant on State and Federal government grant funding, so the actual built value will depend on the level of support provided by the State and Federal government to the Orange community.
Should State or Federal funding not be secured and Council wishes for the project to proceed, the project would be required to be modified, or additional funding sourced by Council through either increased loans, utilisation of reserves or deferral to future years.
In 2021-22, projects that are listed and have an unsecured grant component include:
· CBD Refurbishment: Full project is estimated at $30M with $20M to be secured. This project is able to be staged to reflect funding received / available
· Orange Regional Conservatorium: $20M project with $5M hoping to be secured. This project is able to be staged however it requires funding to proceed in full, or an alternative funding mechanism like loans or reserves will need to be found.
· Shiralee Rd pavement upgrading: $1.1M project with $550K to be secured.
COVID-19
Given the COVID-19 situation is fluid, it is expected that variations through both additional funding and additional expenditure may be required to the Budget after adoption. 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.
Those priorities and ideas which haven’t been able to be afforded at this stage will be further reviewed as Council continues to look at opportunities going forward at quarterly reviews and subsequent plans as they provide a valuable ledger of community wishes.
Key points to note
1. 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.
2. 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 use of additional loans will be subject to Council’s debt ratio continuing to meet the NSW Government benchmark.
3. It is considered that Council should be ambitious in pursuing a large project and service agenda, making the most of leverage funding opportunities to lift outcomes for the community and stimulate the local economy. 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.
4. 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. The 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.
5. Council has retained in the budget the annual Council wide bulky waste collection service, levied against all ratepayers regardless of whether it is utilised or not. The price of the service is $11.60 exc. GST and includes three passes - the first for any refrigerated bulky waste that requires degassing and can be recycled; the second for scrap steel that can be recycled; and the third for general bulky waste.
This has resulted in an operating deficit in the General Fund and a surplus in the utility funds to contribute towards meeting future needs. The summary result of the various funds including items within this report is:
|
Operating Result (by Fund) |
||||
|
|
2021/2022 |
2022/2023 |
2023/2024 |
2024/2025 |
|
General Fund |
2,224,061 |
(1,143,972) |
(1,399,814) |
(1,369,415) |
|
Water Fund |
(140,617) |
(3,970) |
(144,999) |
(103,834) |
|
Sewer Fund |
(1,257,235) |
(1,269,176) |
(1,249,870) |
(1,139,389) |
|
|
||||
|
Total (All Funds) |
826,209 |
(2,417,118) |
(2,794,683) |
(2,612,638) |
|
|
||||
|
Overall Result (by Fund) |
||||
|
|
2021/2022 |
2022/2023 |
2023/2024 |
2024/2025 |
|
General Fund |
3,543,316 |
1,425,058 |
446,456 |
1,100,381 |
|
Water Fund |
(250,204) |
(1,516,210) |
(1,705,877) |
529,365 |
|
Sewer Fund |
(1,348,977) |
(28,433) |
(2,356,480) |
(1,887,252) |
|
|
||||
|
Total (All Funds) |
1,944,135 |
(119,585) |
(3,615,901) |
(257,506) |
|
Note: Positive amounts equal a deficit result |
||||
This report seeks Council’s adoption of the suite of Integrated Planning and Reporting (IP&R) documents, being:
· 2018/19 - 2020/21 Delivery/Operational Plan (noting that the current Delivery Program has been extended by one year as the Local Government election will now be in September 2021)
· Resourcing Strategy incorporating the Long-Term Financial Plan, Workforce Management Plan, Asset Management Policy and Strategy.
Link To Delivery/OPerational Plan
The recommendation in this report relates to the Delivery/Operational Plan strategy “17.1 Collaborate - Provide representative, responsible and accountable community governance”.
Financial Implications
The proposed Delivery/Operational Plan identifies the operational and subsequent budgetary impacts arising in the delivery of the proposed levels of service.
Policy and Governance Implications
The Local Government Act 1993 requires Council to exhibit the documents for a minimum of 28 days. The documents were exhibited from 7 April 2021 to 7 May 2021.
The draft suite of documents has not been reproduced with this report, however following Council’s adoption of the documents, they will be updated and a full copy supplied to all Councillors and made available on Council’s website.
Link To Delivery/OPerational Plan
The recommendation in this report relates to the Delivery/Operational Plan strategy “17.1 Collaborate - Provide representative, responsible and accountable community governance”.
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1 In accordance with Sections 534, 535, 537 and 538 of the Local Government Act 1993, to adopt the following structure for rating purposes for the period 1 July 2021 to 30 June 2022, and make the ad valorem rate in the dollar and base amount as detailed in the table below, noting that land value to be used is based on the valuation date of 1 July 2019 and supplementary information provided since that date, for the rateable land in the Orange Local Government Area, as follows:
2 To adopt the Schedule of Fees and Charges as listed in the exhibited draft Delivery/Operational Plan for the period 1 July 2021 to 30 June 2022, provided that such changes may be varied by any alteration to the Local Government Act 1993 or Local Government (General) Regulation as directed by the NSW Government and subject to Council having the right to vary fees charged during the year subject to the required exhibition processes being observed. The fees and charges for the Companion Animals Act are yet to be published and circulated by the NSW Government. These fees and charges will be amended and adopted as soon as they are received from the NSW Government. 3 The following amendment be advertised and exhibited for 28 days, noting this is the ex GST amount: a Senior Citizens Fob purchase fee is $13.64 (ex GST) b Caravan Park – Standard Cabin (peak) $105/night Single c Caravan Park – Standard Cabin (peak) $115/night Double d Caravan Park – Four Seasons Cottage (off-peak) $220/night (up to four persons) e Caravan Park – Four Seasons Collate (peak) $250/night (up to four persons) 4 That the following expenditure for the period 1 July 2021 to 30 June 2022 be voted in accordance with the requirements of Clause 211 (2) of the Local Government (General) Regulation 2005:
5 To adopt the: a 2018/19 – 2021/22 Delivery/Operational Plan b Resourcing Strategy incorporating the Long-Term Financial Plan, Workforce Management Plan, Asset Management Policy and Strategy 6 That the Councillor allowance be set at $24,810 and the Mayoral Allowance be set at $61,280 for 2021/22, being the maximum allowance for Regional Centre Councils as determined by the Local Government Remuneration Tribunal on 23 April 2021.
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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 Strategy and Plans. The Delivery/Operational Plan identifies key projects and 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 Delivery/Operational Plan is a pledge to the community to deliver an agreed level service, initiatives and projects over the next four years. |
|
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
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 combined 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 Integrated Planning and Reporting framework as required under the Local Government Act 1993 (NSW).
Many of the actions and performance measures in the existing Delivery/Operational Plan have been carried forward.
Assumptions used in preparing the Delivery/Operational Plan are as follows:
· Rating increase as set by NSW Government – 2.0% in 2021/22, 2.5% thereafter
· NSW Local Government Award salary increases – 2.0% in 2021/22, 2.5% thereafter
· Consumer Price index increment –2.5% in all years
· Water charges – increase by 2.0% in all years
· Sewer charges – increase by 2.5% in 2021/22, 2.0% thereafter
· Superannuation – increase as per required – 10.0% in all years (future increases when confirmed will be factored into the forward budget years)
· Continuation of budgeting for the Financial Assistance Grant
Donations
The proposed donations allocations are based on the current donations policy. The major change in the program at this time will be to add the general donations and emergent funding pools together and offer quarterly funding rounds to make the system easier for community members to access. At present applicants must submit an application in February for an event that may be held in June the following year. This tends to disadvantage smaller groups. This does not require a change to the existing policy. All donation areas over the four years in the Delivery/Operational Plan are shown below.
|
Category |
2021/22 |
2022/23 |
2023/24 |
2024/25 |
|
General Donations |
60,000 |
60,000 |
60,000 |
60,000 |
|
Sports Facility grants |
50,000 |
50,000 |
50,000 |
50,000 |
|
Sports Participation program |
13,900 |
13,900 |
13,900 |
13,900 |
|
Donation to Orange Harness Racing |
20,000 |
20,000 |
20,000 |
20,000 |
|
Emergent funding requests |
20,000 |
20,000 |
20,000 |
20,000 |
Public Exhibition
The draft Delivery/Operational Plan, Long Term Financial Plan and Workforce Management Plan were placed on public exhibition from 7 April 2021 to 7 May 2021. The 2021/22 budget online community consultation was hosted on the YourSay Orange site. The budget site was promoted through a number of media releases to traditional media and through Council’s own social channels.
605 people visited the site during the consultation period, reading articles about aspects of the budget, completing surveys or leaving a comment. The site also contained a link about how to make a formal submission. As well as reading shorter articles, people could download the budget documents. 53 people downloaded the budget report and 38 the 21/22 budget. 22 people downloaded the Delivery/Operational Plan and 15 people downloaded the draft Fees & Charges document.
83 people completed a survey about general responses to the budget with the following results:
· 74% supported continuing with the next stages of the Future City CBD upgrade
· 60% supported the construction of the sporting precinct
· 90% believed increased spending on footpaths was worthwhile
· 65% believed spending on upgrading the sewage treatment plant should be a priority
· 76% believed the level of spending on expanding the stormwater harvesting scheme was ‘about right’
· 38% believed the 2% rate peg increase in rates was ‘too much’. 54% believed the increase was ‘about right’
· 61% believed the increase in Council fees & charges was ‘about right’
44 people took up the option of leaving a text comment. The text of each online comment can be seen in the attached YourSay report. A summary of the main themes of the submissions and Council’s response follows:
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Submission topic |
Council Response |
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Picket Fence around Spring Hill Recreation Ground |
$100,000 included in the 21/22 budget |
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Verge Garden Program |
Funding of $15,000 included in budget with grant application for matching amount |
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Indoor playground and inclusive playground at Elephant Park |
Indoor playgrounds are market driven and while an inclusive playground is not planned in 21/22 it will be considered as part of the playground program in future. Several recent playground upgrades have included accessible swings |
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Upgrade of road to Airport |
A staged upgrade is planned over the next 5 years |
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Festival and event sponsorship, signage |
Council is continuing its event sponsorship program, with $100,000 budgeted for 21/22 |
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Clergate Road upgrade |
Staged upgrade is planned with some money already secured, and further grant applications submitted |
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Arts organisations eg. community band |
Council's public arts program exceeds $4m per annum through operation of its public programs. Community groups are able to apply for funding through Councils various donation programs at any time during the year |
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Road and bike/walking path between SFR and rail |
There are three roads that will feed into the Shiralee area - Pinnacle Road, Shiralee Road and Cecil Road. Shiralee road and part of Cecil Road are to be upgraded as part of the construction of the Southern Feeder Road stage 4 which will be undertaken in the 21/22 financial year |
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Lone Pine Ave near Spring Creek dam |
Council does not currently have a programme of sealing low volume gravel roads and is instead focussed on funding major transport corridors such as the Southern Feeder Road |
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Reduce greenhouse gas emissions and reduce electricity reliance |
Council is investing a further $500,000 in renewable projects in 21/22. Such initiatives have already led to significant electricity consumption reductions with over $400,000 in electricity savings expected for 20/21 |
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Orange Regional Conservatorium |
$20M project over next 2 years with $5M hoping to be secured. This project is able to be staged however it requires funding to proceed in full, or an alternative funding mechanism like loans or reserves will need to be found |
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Southern Feeder Road |
Stage 4 of the Southern Feeder Road is included in the 21/22 budget |
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Water supply security |
There have been a number of projects that have increased security of supply in recent times including pipelines and stormwater harvesting schemes. Council is constantly looking to ensure security of supply including a large review to be conducted in 21/22 known as Integrated Water Cycle Management |
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Bulky Waste |
Service will continue in 21/22 |
There was general support for council initiatives and projects in the draft Delivery/Operational Plan. The full survey results can be found in the attachments to this report.
SUBMISSIONS
Arising from the exhibition period, Council has received 7 formal written submissions. A copy of each written submission has been provided as an attachment to this report.
Submissions Summary
Submission 1 |
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Request The applicant is strongly objecting to the proposed Verge Garden program |
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Staff Comment Access and mobility issues will be considered as part of any future program.
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Recommendation |
$15,000 has been included in 21/22 budget with a matching grant application pending. |
Submission 2 |
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Request The applicant is seeking the sealing of Springbank Lane |
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Staff Comment Expanding the sealed road network through the sealing of gravel roads is not supported in Council's asset management plans due to the substantial backlog of existing sealed road upgrades required. Further, dead end roads such as Springbank Lane with 6 houses, would not be prioritised as highly as gravel through roads or roads servicing higher volumes of traffic.
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Recommendation |
Noted. |
Submission 3 |
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Request The applicant is writing in support of the new Regional Conservatorium |
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Staff Comment $20M project over next 2 years with $5M hoping to be secured. This project is able to be staged however it requires funding to proceed in full, or an alternative funding mechanism like loans or reserves will need to be found. |
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Recommendation |
$7.5 million included in 21/22 budget. |
Submission 4 |
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Request Re-vegetation around Kearneys Dr, McFawn Pl through to Brooklands Dr, bridge to connect Speet Pl to existing playground on Botanic Way |
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Staff Comment Planting is being undertaken with community input with ground preparation commenced. The construction of a bridge across this drainage line is not currently included in the public open space asset management plan. The bridge would not be prioritised as highly as others due to the low usage potential when compared to other areas. |
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Recommendation |
Noted. |
Submission 5 |
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Request Heavy vehicle use of roads along Forest Rd and Whiley Road at Spring Hill |
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Staff Comment Council has had an ongoing program of funding upgrades to Forest Road with over $6M being spent on upgrades along its length over the last 5 years. Council has sought co-funding for upgrades from RMS and now TfNSW under the Regional Road REPAIR grant scheme with submissions being ranked by the Authority based on set criteria. |
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Recommendation |
The draft budget allows for a further $800,000 to be spent upgrading another section of Forest Rd / Whiley Road in the next financial year. |
Submission 6 |
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Request Footpaths around Wontama and St Frances aged care facilities in Byng, Clinton and March Streets |
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Staff Comment Footpaths around the facilities mentioned have been targeted for replacement and maintenance over the last 4 years.
To this end major works have been undertaken at: · Byng Street: Clinton to Sampson (North) · Sampson Street: Highway to Byng Street (both sides) · Clinton Street: Byng to March (west side) |
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Recommendation |
Apart from routine maintenance, further major upgrade works are planned for 21/22 financial year at: · Clinton Street: Summer Street to Byng Street (West) · March Street: Clinton to Sampson (South). |
Submission 7 |
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Request Cook Park loose gravel pathways |
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Staff Comment Cook Park is of State Heritage significance as a fine example of a Victorian era public park. Currently Council undertakes an annual program of granitic sand pathway maintenance within Cook Park. This program involves the grading, resurfacing and rolling of the granitic sand pathways; in addition to this annual maintenance, periodic maintenance is required following summer thunderstorms or other rainfall events where erosion has been caused. The granitic sand pathways are an integral part of the character and make–up of Cook Park, they are an endearing quality of the part that reminds visitors of the historical nature and establishment of the park. Cook Park staff have undertaken and continue to undertake many improvements to the path network, whilst maintaining the Victorian landscape architectural structure, minor pathways are adjusted to enhance the growing environment of heritage trees and the like. |
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Recommendation |
Noted |
Changes made since the draft budget went on public exhibition
There have been some minor amendments included in the 2021/22 Delivery/Operational Plan since the draft went on public exhibition. These changes are detailed in the tables below.
There have been no changes made to the Delivery/Operational Plan for the water fund or sewer fund.
The caravan park fees and charges are proposed for readvertising as those exhibited were incorrect.
The incorrect “peak season” fees and charges were included in the advertised fees and charges. For the budget and standard cabins it appears there is a significant rise in the fees and charges advertised as a change in fee structure was due to be introduced on 1 July 2021. The new fee structure includes a base increase of a small amount above the standard hire for a cabin in 2020/21 and also rolls in the previous linen hire that was charged separately. Including the linen hire allows park staff to provide a higher level of service more efficiently rather than having customers drag linen from the office to the cabin. The pricing for the “Off Peak Season” is consistent with this methodology.
For the Four Seasons Cottage the prices are more reflective of the scale of the building and the additional costs in servicing this building with linen and cleaning. This cottage can potentially sleep up to eight people.
1 'Your Say Orange' Project Report - Budget 2021, D21/30051⇩
2 Submission 01 - Verge Garden Program, D21/29852⇩
3 Submission 02 - Sealing of Springbank Lane, D21/29853⇩
4 Submission 03 - The Regional Conservatorium, D21/29855⇩
5 Submission 04 - Re-vegetation, D21/29857⇩
6 Submission 05 - Heavy Vehicle Use, D21/29858⇩
7 Submission 06 - Footpaths, D21/29859⇩
8 Submission 07 - Cook Park loose gravel pathways, D21/29860⇩
