Extraordinary

MEETING NOTICE AND AGENDA

An Extraordinary Meeting of the Bega Valley Shire Council will be held at Council Chambers, Bega on Wednesday, 26 June 2013 commencing at 2.00 pm to consider and resolve on the matters set out in the attached Agenda.

 

Peter Tegart

General Manager

 

 

20 June 2013

 

TO:

Cr Bill Taylor, Mayor

Cr Russell Fitzpatrick, Deputy Mayor

Cr Tony Allen

Cr Michael Britten

Cr Keith Hughes

Cr Ann Mawhinney

Cr Kristy McBain

Cr Liz Seckold

Cr Sharon Tapscott

COPY:

General Manager, Mr Peter Tegart

Group Manager Infrastructure, Waste and Water, Mr Wayne Sartori

Group Manager Planning and Environment, Mr Andrew Woodley

Group Manager Community and Relationships, Ms Leanne Barnes

Minute Secretary

 

 

 


PUBLISHING OF AGENDAS AND MINUTES

The Agendas for Council Meetings and Council Reports for each meeting are available from 5.00 pm one week prior to each Ordinary Meeting, on Council’s website.  A hard copy is also made available to each Library Branch and at the Bega Administration Building reception desk.

The Minutes of Committee and Council Meetings are available from 5.00pm on Council's Web Site on the Friday after the Meeting on Councils website and hard copies distributed with the Agenda for the following meeting.

1.      Please be aware that the recommendations in the Council Meeting Agenda are recommendations to the Council for consideration.  They are not the resolutions (decisions) of Council.

2.      Background for reports is provided by staff to the General Manager for his presentation to Council.

3.      The Council may adopt these recommendations, amend the recommendations, determine a completely different course of action, or it may decline to pursue any course of action.

4.      The decision of the Council becomes the resolution of the Council, and is recorded in the Minutes of that meeting.

5.      The Minutes of each Council meeting are published in draft format, and are confirmed, with amendments by Councillors if necessary, at the next available Council Meeting.

If you require any further information or clarification regarding a report to Counci, please contact Council’s Executive Assistant who can provide you with the appropriate contact details

         Phone (6499 2104) or email execassist@begavalley.nsw.gov.au.


ETHICAL DECISION MAKING AND CONFLICTS OF INTEREST

A GUIDING CHECKLIST FOR COUNCILLORS, OFFICERS AND COMMUNITY COMMITTEES

Ethical decision making

Is the decision or conduct legal?

Is it consistent with Government policy, Council’s objectives and Code of Conduct?

What will the outcome be for you, your colleagues, the Council, anyone else?

Does it raise a conflict of interest?

Do you stand to gain personally at public expense?

Can the decision be justified in terms of public interest?

Would it withstand public scrutiny?

Conflict of interest

A conflict of interest is a clash between private interest and public duty. There are two types of conflict:

Pecuniary – regulated by the Local Government Act and Department of Local Government

Non-pecuniary – regulated by Codes of Conduct and policy. ICAC, Ombudsman, Department of Local Government (advice only).  If declaring a Non-Pecuniary Conflict of Interest, Councillors can choose to either disclose and vote, disclose and not vote or leave the Chamber.

The test for conflict of interest

Is it likely I could be influenced by personal interest in carrying out my public duty?

Would a fair and reasonable person believe I could be so influenced?

Conflict of interest is closely tied to the layperson’s definition of ‘corruption’ – using public office for private gain.

Important to consider public perceptions of whether you have a conflict of interest.

Identifying problems

1st     Do I have private interests affected by a matter I am officially involved in?

2nd    Is my official role one of influence or perceived influence over the matter?

3rd    Do my private interests conflict with my official role?

 

Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.

Agency advice

Officers of the following agencies are available during office hours to discuss the obligations placed on Councillors, officers and community committee members by various pieces of legislation, regulation and codes.

Contact

Phone

Email

Website

Bega Valley Shire Council

(02) 6499 2222

council@begavalley.nsw.gov.au

www.begavalley.nsw.gov.au

ICAC

8281 5999

Toll Free 1800 463 909

icac@icac.nsw.gov.au

www.icac.nsw.gov.au

Division of Local Government (DPC)

(02) 4428 4100

dlg@dlg.nsw.gov.au

www.dlg.nsw.gov.au

NSW Ombudsman

(02) 8286 1000

Toll Free 1800 451 524

nswombo@ombo.nsw.gov.au

www.ombo.nsw.gov.au

 


TO:   The General Manager
Bega Valley Shire Council

 

Disclosure of pecuniary interests / non-pecuniary conflict of interests

In accordance with the Council’s Code of Meeting Practice and the requirements of the Local Government Act  and regulations or dispensation issued by the Division of Local Government  I hereby disclose the following pecuniary interests and/or non-pecuniary conflict of interests at the meeting as indicated below:

Ordinary meeting held on _____ / _____ / 20___

dd               mm                  yy

 

Item no & subject

 

 

Interest (tick one)

Pecuniary interest                                    Non-pecuniary conflict of interest

 

* Nature of interest

 

 

If Non-pecuniary  (tick one)

 Disclose & vote        Disclose & not vote          Leave chamber

 

 

 

 

Item no & subject

 

 

Interest (tick one)

Pecuniary interest                                    Non-pecuniary conflict of interest

 

* Nature of interest

 

 

If Non-pecuniary  (tick one)

 Disclose & vote        Disclose & not vote          Leave chamber

 

 

 

 

Signed

 

Print Name

Councillor

 

*  Note:   Under the provisions of Section 451(1) of the Local Government Act 1993 (pecuniary interests) and Part 6.11 of the Model Code of Conduct prescribed by the Local Government (Discipline) Regulation 2004 (conflict of interests) it is necessary for you to disclose the nature of the interest when making a disclosure of a pecuniary interest or a non-pecuniary conflict of interest at a meeting.

 

 


Extraordinary Council                                                                                 26 June 2013

 

AGENDA

1     Apologies and requests for leave of absence

 

2     Declarations

Pecuniary, Non-Pecuniary and Political Donation Disclosures to be declared and tabled.

3     Staff Reports – Leading Organisation

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Councillor Surname

3.1              Adoption of draft Community Strategic Plan documents including 2013‑14 Budget................................................................................ 7

3.2              Special Variation Proposal............................................................... 13      

 

 

 


Extraordinary Council                                                                                 26 June 2013

 

staff reports – governance and strategy (leading organisation)

 

26 June 2013

In accordance with Council’s Code of Meeting Practice (2011), this section of the agenda will be chaired by Councillor Mawhinney.  

3.1           Adoption of draft Community Strategic Plan documents including 2013-14 Budget.......................................................................... 7

3.2           Special Variation Proposal.......................................................... 13


Extraordinary Council 26 June 2013                                                             Item 3.1

 

3.1.          Adoption of draft Community Strategic Plan documents including 2013-14 Budget     

 

The Council’s Community Strategic Plan documents for 2013-14 have been on public exhibition for the required period of 28 days. 

 

Finance Manager   

 

Background

All councils in NSW are required to develop long term, medium term and short term plans under the Local Government Amendment (Planning and Reporting) Act 2009 which has transitioned councils to a new Integrated Planning and Reporting (IPR) framework.

Council has considered several reports since the Council elections in September 2012 outlining the approach to reviewing the Community Strategic Plan (CSP) and enacting the Long Term Financial Plan (LTFP).  Throughout the months of February to June 2013 Council has exhibited all plans within the CSP framework as required.  Exhibition periods are summarised below:

·    At its meeting on 6 February 2013 Council resolved to place the following documents on public exhibition for 28 days covering the period 7 February – 6 March 2013:

Draft Delivery Plan and Operational Plan 2013-14 including the Revenue Policy.  The Long Term Financial Plan was provided as supplementary document.

Draft Operating Budget 2013 – 14

This consultation period outlined a Special Variation proposal to rates

·    At its meeting on 1 May 2013 Council resolved to place the 2013-14 Fees and Charges document on public exhibition for 28 days covering the period of 2 May – 30 May.

·    At its meeting on the 22 May 2013 Council resolved to place the Community Strategic Plan – Bega Valley 2030 on public exhibition for 28 days covering the period of 23 May – 19 June 2013.

SUBMISSIONS

Draft Delivery Plan and Operational Plan 2013-14 including Revenue Policy

There were a total of 36 submissions received which were all directed to the special variation proposal.  Council reviewed and considered these submissions at the Extraordinary Meeting 7th March 2013.  Issues directly related to the special variation proposal are outlined in the Proposed Special Variation Business Paper.

Internal reviews identified areas for updating to ensure consistency including the update of latest population figures.

Council adopted the Water and Sewer Development Servicing Plan on 12 June 2013, with those fees for headworks charges now included in the Fees and Charges schedule.  Council explored alternate models for charging non-strata properties for sewer at recent workshops, and concluded to revisit alternate models for the 2015 financial year.

Draft Operating Budget 2013-14

There were no submissions received on the Draft Operating Budget 2013-14, although some amendments are proposed to cover:

-     Project costs associated with the redevelopment of the Bega Civic Centre and Tura Tavern conversion to community facility

-     Inclusion of rate revenues and expenditures associated with the IPART approved rates SV

-     Pending Council decision on aggregating components, and bringing forward the Merimbula CBD bypass project

Draft Fees and Charges 2013-14

There was one external submission received prior to formal consultation period.  Submission was in relation to Public Land Use Approval – Outdoor Dining.  Submission has been provided to Council as attachment.

Internal reviews identified areas of duplication of fee schedule within the Sewage Management Facility Inspections (onsite).  This also identified the correction of Request for approval to operate OSM system from 7 day response to 14 day response.

New s64 Water and Sewer charges will be included in the schedule.7

Internal reviews also highlighted the need to maintain library A4 photocopying charges at 35c per sheet.  Exhibited cost proposed 50c per A4 sheet.

Draft Community Strategic Plan – Bega Valley 2030

The Community Strategic Plan – Bega Valley 2030 establishes the ambitions of our community and outlines a sustainable direction for the future for the Council and community to work towards over the next 20 years.  This plan was developed through extensive consultation with community and agencies in 2010 and delineates the role Council plays in advocating, facilitating, providing or regulating infrastructure and services.

The revised plan placed on public exhibition contained edits and amendments to provide further clarity on key directions and remove duplication as per recommendations from DLG.   The revised plan has maintained the direction of community feedback through the extensive consultation period in 2010 and has further enhanced key areas raised through the community satisfaction survey conducted in 2012.

Following adoption of the Community Strategic Plan the Bega Valley Delivery Plan and Operational Plan will have an updated number alignment to ensure consistency throughout the plan hierarchy.  This will not require exhibition.

At the time of preparing the report, there were no submissions received.

Draft Operating Budget 2013-14

Councils draft operating budget takes the 2014 allocation from the Long Term Financial Plan and breaks it down into a detailed operating budget for the various functions of Council. The draft budget for 2014 is in line with the Long Term Financial Plan.

The charts below illustrate the high level breakdown of Council expenditure profile for 2013-14 and the funding sources required to meet that profile.

 

Councils operating budget includes operating and capital expenditure totalling $102.5m for 2014. A large portion of this expenditure is retained within the community through the payment of wages and to local suppliers.

The charges that appear on Councils rates notices contribute only about 45% to this expenditure.

The operating budget includes allocations that have been referred by Council, including:

·    $25,000 to ensure security fencing around Bega after school care.

·    $100,000 for NSW Tourism co-funded program.

·    $15,000 for the Eden Whale Festival.

·    $2,000 for the Snowy Hydro Helicopter service.

·    $2,000 for the Westpac Lifesaver Helicopter service.

The operating budget includes allocations for major projects such as:

·    $4.5m for the renewal of Councils road program, including Councils collector roads.

·    $5.5m for the renewal and upgrade of the Bega Town Hall.

A number of other projects are included in the budget for a total capital expenditure vote of $37.5m for 2014.

Council’s responsibilities are diverse and services many areas of the community. Councils operating budget includes allocations to following community services such as:

·    $2.2m for Community Services

·    $1.4m for Fire and Emergency services

·    $330,000 to maintain Councils Cemeteries.

·    $1.8m for Libraries and Galleries.

·    $600,000 on Tourism infrastructure and support.

As per the Local Government Act, Council has to review its organisational structure after an election. This review is in progress. Any costs associated with this review will be brought before Council and incorporated into the September QBRS.

ISSUES

Legal

Council is required under the Local Government Amendment (Planning and Reporting) Act 2009 to publicly exhibit the annual operational plan and any major changes to key documents adopted as part of the Councils Integrated Planning and Reporting framework.  Council is also required to re-exhibit the Community Strategic Plan (Bega Valley 2030) for a period of 28 days prior to 30 June following a Council election.  These requirements have been met.

Strategic

The suite of documents when adopted will guide the Council’s operations under the Integrated Planning and Reporting framework.

Consultation

There was considerable consultation with the community in the preparation of the Community Strategic Plan directions which provide the framework for the Delivery Plan and Operating Plan.  Focused consultation was held in relation to the proposed special variation to rates, this has been identified and outlined in the Proposed Special Variation Business Paper.

 

Conclusion

Council has placed all plans within the Integrated Planning and Reporting framework have been placed on public exhibition for the required period of 28 days.  Recommendations from the DLG have been taken into consideration throughout the review process and style review has enabled consistency in communication throughout the suite of documents in alignment with Council’s draft Communication Strategy.

The Budget has been drawn from the LTFP revised by Council, and will not require amendment should Council take up the SVs approved by IPART.  The outcome of LIRS applications on proposed loans for the Civic Centre and depot are unknown at this stage, and may be reflected in the next QBRS.  Modification and operation costs associated with the Bega Civic Centre and Tura Tavern sites are deferred pending Council decision on uses for the sites.

The Level of Service Statement will be modified to reflect the revision of services and functions associated with the review of organisation structure and resources next month.  The Revenue Policy will be modified to reflect that that a review of non-strata sewer fees, to take effect in 2014/15, will be considered. 

 

ATTACHMENTS

Nil

 

Recommendation

1.      That the Draft Delivery Plan and Operational Plan which include Revenue Policy be adopted.

2.      That the Draft 2013-14 Operating Budget be adopted.

3.      That the Draft 2013-14 Fees and Charges with internal amendments be adopted.

4.      That the Draft Community Strategic Plan – Bega Valley 2030 be adopted.

 


Extraordinary Council 26 June 2013                                                             Item 3.2

 

3.2.          Special Variation Proposal     

 

The Independent Pricing and Regulatory Tribunal (IPART) has determined that Bega Valley Shire Council has been successful in its S508A application for a proposed Special Variation to General Rates income.  Council is required to formally resolve the adoption of the Special Variation.

 

Finance Manager  

 

Background

At the extraordinary meeting of Council, held 7 March, 2013,  Council resolved to submit a general special rate application to IPART consistent with the proposal adopted in Council’s Long Term Financial Plan and outlined in the draft operational plan 2013-14, being:

1. New 2% one-off permanent increase above the 3.4% rate peg in 2014, for renewal of collector roads. This variation will raise the general rate yield by an estimated $391,000 in 2014 and then be indexed by LGCI on an ongoing capacity. Total increase 5.4%.

2. Retained 2.5% one-off permanent increase above rate pegging in 2015 to continue the expiring recreation and access approval, with the options to use this amount for debt servicing or for annual project works in line with the LTFP for recreation asset renewals and improvements. This variation will retain the general rate yield at an estimated $516,000 pa and then be indexed by LGCI on an ongoing capacity.

3. New 2% one-off permanent increase above rate pegging in 2016 for infrastructure renewal for public domain areas and buildings. This variation will raise the general rate yield by an estimated $433,000 pa and then be indexed by LGCI on an ongoing capacity.

The rate variations are a one-off % lift in total general rate income. With an expiring special variation, the value of a rate variation (including effect of rate pegs) is removed from the total rate income. The application to IPART anticipates the value of the rate peg, plus the amount above rate peg that is sought.

ISSUES

Asset

The core intent of the special variation model is to address the growing maintenance and renewal backlog of Council assets which have a current worth of $1.25 billion.

Raising the general rates by 2 – 2.4% above the standard yearly peg rate of 3% for three years, will net an extra $1.3 million p.a for spending on essential infrastructure upgrades and renewal in the areas of collector roads, recreation assets, public domain and public buildings.  Council has committed to allocating these funds to the following areas, in accord with adopted asset management plans.

2013 – 2014: collector road infrastructure renewals

2014 – 2015: recreational facilities, renewals and upgrades.  This replaces an expiring variation.

2015-2016: community buildings renewals

Council is permitted to earn interest on funds raised through the Special Variation. The annual reports will outline the funds raised by these and all special rate variations, and on what works and projects they have been expended in accord with the approval instrument issued by IPART, or the Minister for Local Government.

Strategic

Should Council resolve to not accept the approved Special Variation to General Rates, long term plans will be required to be reviewed and re-exhibited.

Consultation

Council commenced consultation and engagement in 2012 and placed the proposed special variation on public exhibition for the period 7 February 2013 to 6 March 2013.

Prior to the formal exhibition period, Council hosted focus meetings with key community, media and interest groups in relation to the proposals for rate increases for renewal of collector roads and community buildings, and retention of the sports and access variation.

Groups involved in the focus group consultations included:

· Bega Valley Shire Ratepayers Association

· Media

· Sport and recreation / facility committees

· General halls committee

· Chambers of Commerce, truck and bus operators, farmer association

Issues raised through these consultation sessions were considered by Councillors prior to the formal exhibition period.

The key components deployed to inform and engage with the community included:

·    Web site and online rates calculator

·    Special Variation Brochure

·    Media – media staff were invited to a briefing with the Mayor on the special variation proposal and the draft operational plan and budget. Council provided regular media information about the proposal over the period of public exhibition.

·    Bega Valley Views – Council’s online consultation forum

·    Deliberative survey questionnaire– this was made broadly available online following the completion of the independent survey period.

·    Community Link – a summary of the information provided in the special variation brochure was run in Council’s Community Link page in local print media

·    Public meetings - The Mayor and Councillors hosted a series of community forums on the special variation over the period of public exhibition.  Forums were held in Bermagui, Bega, Merimbula and Eden.

Key issues were raised during the consultation period, and consideration of the 36 submissions received were considered by Council at the extraordinary meeting held 7 March 2013.

Financial

The table below illustrates the rate yield with the rate peg only, compared to the effect of the approved rate variations.

Rate category

Properties

Old LV ($m)

New LV ($m)

2014 rate yield (rate peg only)

2014 rate yield (rate peg and SV)

2015 rate yield (rate peg and SV)

2016 rate yield (rate peg and SV)

Residential

17,281

$2,559,081,995

$2,410,231,818

$16,144,985

$16,685,627

$17,603,336

$18,914,360

Business

1,004

$394,200,020

$370,867,000

$1,792,948

$1,852,988

$1,954,902

$2,100,495

Farmland

850

$274,508,030

$246,823,385

$2,066,546

$2,135,748

$2,253,215

$2,421,025

 

19,135

$3,227,790,045

$3,027,922,203

$20,004,479

$20,674,363

$21,811,453

$23,435,880

Conclusion

Council’s proposal for a special variation to rate income over a three year period has been considered by the Council and the community since the consultation period for the Council’s community strategic plan in 2010. The proposal is included in Council’s adopted Long Term Financial Plan and the proposal was identified as a key project for consultation with the community in the 2013 Operational Plan.

IPART under section 508A(1) of the Local Government Act 1993 have now approved in full that the percentage by which Bega Valley Shire Council may increase its general income for the period from 2013/2014 to 2015/2016 by 16.76%, including rate peg, consisting of the following annual increases:

 

Year

Annual increase in general income (%)

Cumulative increase in general income (%)

Y1

2013/14

5.40

5.40

Y2

2014/15

5.50

11.20

Y3

2015/16

5.00

16.76

 

[Note: The council will be reducing its general income for the year 2014/2015 by $537,409 (the value of an expiring variation) before increasing its general income for that year under clause 1.]

The percentage increase set out in clause 1 above (special variation) is subject to the following conditions:

I.    The council uses the Additional Income for the purposes of funding its program of asset renewals and upgrades, including collector roads, recreation assets, and public halls and buildings. This program of expenditure is listed in Appendix A of IPART’s determination dated June 2013 of the council’s application under section 508A(1) of the Act (IPART’s Determination).

Additional Income means:

a)    the additional general income raised in accordance with clause 1 of this instrument, less

b)    the additional general income that would otherwise be available to the council under section 506 of the Act.

II.   The council reports in its annual report for each rating year over the period from 2013/2014 to 2022/2023 on:

(a)        the program of expenditure that was actually funded by the special variation and the reasons for any significant differences from the program listed in Appendix A of IPART’s Determination; and

(b)        the outcomes achieved as a result of the special variation.

(c)        The council reports to the Division of Local Government, Department of Premier and Cabinet, by 30 November each year on its compliance with these conditions for each rating year over the period from 2013/2014 to 2022/2023.

 

ATTACHMENTS

1View. Bega Special Variation Instrument 2013/2014 - s508A

 

Recommendation

That Council determine if it is to adopt the Special Variation to General Rates, approved by IPART, which is consistent with Council’s Long Term Financial Plan and outlined in the draft operational plan 2013-14.

 


Extraordinary Council

26 June 2013

Item 3.2 - Attachment 1

Bega Special Variation Instrument 2013/2014 - s508A

 

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