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OrdinaryMeeting Notice and Agenda
An Ordinary Meeting of the Bega Valley Shire Council will be held at Council Chambers, Biamanga Room Bega Valley Commemorative Civic Centre
Bega on
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OrdinaryMeeting Notice and Agenda
An Ordinary Meeting of the Bega Valley Shire Council will be held at Council Chambers, Biamanga Room Bega Valley Commemorative Civic Centre
Bega on
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Council meetings are recorded and live streamed to the Internet for public viewing. By entering the Chambers during an open session of Council, you consent to your attendance and participation being recorded.
The recording will be archived and made available on Council’s website www.begavalley.nsw.gov.au. All care is taken to maintain your privacy; however as a visitor of the public gallery, your presence may be recorded.
The Agendas for Council Meetings and Council Reports for each meeting will be available to the public on Council’s website as close as possible to 5.00 pm on the Thursday prior to each Ordinary Meeting. A hard copy is also made available at the Bega Administration Building reception desk and on the day of the meeting, in the Council Chambers.
The Minutes of Council Meetings are available on Council's Website as close as possible to 5.00 pm on the Monday after the 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 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 by Councillors, with amendments 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.
· 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?
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 1993 and Office of Local Government
· Non-pecuniary – regulated by Codes of Conduct and policy. ICAC, Ombudsman, Office 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.
· 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.
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?
For more detailed definitions refer to Sections 442, 448 and 459 or the Local Government Act 1993 and Model Code of Conduct, Part 4 – conflictions of interest.
Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.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.
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Contact |
Phone |
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Website |
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Bega Valley Shire Council |
(02) 6499 2222 |
council@begavalley.nsw.gov.au |
www.begavalley.nsw.gov.au |
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ICAC |
8281 5999 Toll Free 1800 463 909 |
icac@icac.nsw.gov.au |
www.icac.nsw.gov.au |
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Office of Local Government |
(02) 4428 4100 |
olg@olg.nsw.gov.au |
http://www.olg.nsw.gov.au/ |
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NSW Ombudsman |
(02) 8286 1000 Toll Free 1800 451 524 |
nswombo@ombo.nsw.gov.au |
Under the provisions of Section 451(1) of the Local Government Act 1993 (pecuniary interests) and Part 4 of the Model Code of Conduct prescribed by the Local Government (Discipline) Regulation (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.
The following form should be completed and handed to the General Manager as soon as practible once the interest is identified. Declarations are made at Item 3 of the Agenda: Declarations - Pecuniary, Non-Pecuniary and Political Donation Disclosures, and prior to each Item being discussed:
Council meeting held on __________(day) / ___________(month) /____________(year)
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Item no & subject |
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Pecuniary Interest
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In my opinion, my interest is pecuniary and I am therefore required to take the action specified in section 451(2) of the Local Government Act 1993 and or any other action required by the Chief Executive Officer. |
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Significant Non-pecuniary conflict of interest |
– In my opinion, my interest is non-pecuniary but significant. I am unable to remove the source of conflict. I am therefore required to treat the interest as if it were pecuniary and take the action specified in section 451(2) of the Local Government Act 1993. |
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Non-pecuniary conflict of interest |
In my opinion, my interest is non-pecuniary and less than significant. I therefore make this declaration as I am required to do pursuant to clause 4.17 of Council’s Code of Conduct. However, I intend to continue to be involved with the matter. |
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Nature of interest |
Be specific and include information such as : · The names of any person or organization with which you have a relationship · The nature of your relationship with the person or organization · The reason(s) why you consider the situation may (or may be perceived to) give rise to a conflict between your personal interests and your public duty as a Councillor. |
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If Pecuniary |
Leave chamber |
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If Non-pecuniary (tick one) |
Disclose & vote Disclose & not vote Leave chamber |
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Reason for action proposed |
Clause 4.17 of Council’s Code of Conduct provides that if you determine that a non-pecuniary conflict of interest is less than significant and does not require further action, you must provide an explanation of why you consider that conflict does not require further action in the circumstances |
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Print Name |
I disclose the above interest and acknowledge that I will take appropriate action as I have indicated above. |
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Signed |
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NB: Please complete a separate form for each Item on the Council Agenda on which you are declaring an interest.
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Council |
26 June 2019 |
Recommendation
That the Minutes of the Ordinary Meeting held on 12 June 2019 as circulated, be taken as read and confirmed.
Pecuniary, Non-Pecuniary and Political Donation Disclosures to be declared and tabled. Declarations also to be prior to discussion on each item.
Nil Reports
Nil Reports
Nil Reports
11.1 RFT 31/19 - Auckland Street Stormwater Assets Structural Relining............ 14
11.2 Bermagui All Abilities Playground - Location.................................................... 18
11.3 Bega Valley Local Traffic Committee.................................................................. 73
12.1 Notice to the NSW Minister for Lands and Forestry of Council's intention to divest of management responsibilities over several NSW Government assets.................................................................................................................. 73
12.2 Adoption of Revised Delivery Program 2017- 2021 and Operational Plan 2019-2020 and Annual Budget 2019-2020................................................... 73
13.1 Adoption of Fees and Charges 2019 - 2020...................................................... 73
13.2 Certificate of Investment..................................................................................... 73
13.3 Impact of Misstatement of 2017-2018 Budget in the Annual General Purpose Financial Statements......................................................................... 73
Representations by members of the public regarding closure of part of meeting
Adjournment Into Closed Session, exclusion of the media and public............... 73
Council |
26 June 2019 |
11.1 RFT 31/19 - Auckland Street Stormwater Assets Structural Relining...... 14
11.2 Bermagui All Abilities Playground - Location........................................... 18
11.3 Bega Valley Local Traffic Committee......................................................... 73
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Council 26 June 2019 |
Item 11.1 |
This report details the outcome of evaluation of Tender RFT 31/19 for Auckland Street, Bega, Stormwater Assets Structural relining and recommends award to the preferred tenderer.
Director Assets and Operations
Executive Summary
This report details the outcome of the evaluation of Tender RFT 31/19 for Auckland Street, Bega, Stormwater Assets Structural relining and recommends award to the preferred tenderer.
The purpose of the works is to repair Council’s existing stormwater assets with cure in-situ structural liners. The works are to include cleaning the pipes, removal of obstructions, and includes management of intruding services and the installation of structural liners.
Background
During routine annual stormwater CCTV condition inspections conducted in 2017, a number of critical pipe defects were detected in a 1050mm diameter stormwater line running from Auckland Street through private property to Bega Street within the Bega Central Business District (CBD). The identified stormwater asset and other stormwater assets were then included as part of Council’s stormwater drainage renewal program for 2019 as per its current adopted Transport Asset Management Plan.
Buildings now exist over the stormwater line that precludes more traditional techniques of pipe replacement or renewal using excavation.
The stormwater line also possesses a portion of ovoid brick channel that crosses Auckland Street into private property for some length. Relining is desired to maintain not only the function of the channel but also to preserve any heritage value the structure possesses. Due to the sensitive nature of the CBD location, traditional excavation and replacement techniques can cause increased inconvenience from extended project duration to the community from cut and cover techniques.
Operational issues also arise with maintaining function of a live stormwater line draining a substantial catchment during construction. Accordingly, trenchless techniques were identified for rehabilitation due to their ability for shorter duration and reduced project footprint.
Council invited tenders from suitably qualified contractors to install structural linings within the stormwater assets.
Tenders were advertised in local media on 8 May 2019 and in the Sydney Morning Herald on 7 May 2019.
The documents were viewed by 153 interested parties from Vendorpanel.
At the close of the tender period at 12.00pm on 29 May 2019, 14 documents were issued, with five submissions received
Applicants were asked to provide:
a) Lump sum price breakdown of the works
b) Schedule of Tenderer’s Project Experience
c) Schedule of Key Contact Staff
d) Schedule of Consultants, Subcontractors and Major Suppliers
e) Schedule of Tender Program
f) Schedule of Work Health and Safety
g) Proposed site establishment
h) Schedule of Quality Assurance
i) Schedule of Environmental management
j) Any additional information
The tender submissions were assessed against the following
evaluation criteria:
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Tender Evaluation |
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Criteria |
Weighting |
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Price |
60% |
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Proposed construction arrangements |
10% |
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Construction Program |
5% |
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Local Community Benefit |
5% |
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WH&S, Quality management, Environmental management qualifications and experience |
5% |
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Capacity to undertake project of similar scale |
5% |
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References |
2% |
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Support of Indigenous business development |
3% |
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Experience completing similar projects |
5% |
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Total |
100% |
Community Engagement
Consultation undertaken
The project is currently identified in Council’s adopted Transport Asset Management Plan that was publicly exhibited to the community prior to adoption.
Consultation Planned
Local stakeholder engagement will occur during the project delivery phase through a variety of traditional and electronic media.
Financial and resource considerations
The project is funded under the following budget:
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Funding source |
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Amount |
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Stormwater Levy |
$ |
150,000.00 |
Legal /Policy
The tender process complied with the Local Government Act 1993.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Strategic Alignment
The project is currently identified in Council’s adopted Transport Asset Management Plan
The stormwater line in question is a key asset in draining a sub-catchment of some 33.5 ha within the Bega CBD. Its performance and condition is critical to maintaining adequate upstream network function and also network function within the CBD.
The sub-catchment is one of 3 draining the Bega CBD.
Environmental / Sustainability
Trenchless relining techniques can provide a reduced project duration and footprint, combined with the re-use of existing pipe materials, are likely to reduce the overall carbon footprint associated with the renewal works.
Economic
The stormwater assets are identified in Council’s current adopted Transport Asset Management Plan for renewals during 2019.
Trenchless relining techniques can provide Council with a modern equivalent engineering asset at a fraction of the cost of traditional techniques of complete pipe replacement whilst minimising inconvenience to the community.
Risk
It is considered the trenchless relining techniques can mitigate economic, environmental and social/cultural issues better than other traditional stormwater renewal options.
Social / Cultural
Relining is desired to maintain not only the function of the channel but also to preserve any heritage value the structure possesses.
Due to the sensitive nature of the Bega CBD location, traditional excavation and replacement techniques can cause increased inconvenience from extended project duration to the community from cut and cover techniques.
1. 2019.06.26 Confidential Attachment Report RFT 31/19 Auckland Street Stormwater Assets Structural Relining Confidential Memorandum to Councillors (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret (Section 10A(2)(d) of the Local Government Act 1993).
2. 2019.06.26 Confidential Attachment Report RFT 31/19 Auckland Street Stormwater Assets Structural Relining Tender Evaluation Scoresheet (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret (Section 10A(2)(d) of the Local Government Act 1993).
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Council 26 June 2019 |
Item 11.2 |
11.2. Bermagui All Abilities Playground - Location
Council has received funding through the NSW Government’s Stronger Country Communities Fund to deliver an All-Abilities Playground in Bermagui. Community consultation on the site selection for this playground has now concluded.
Director Assets and Operations
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1. That the information in the report and attachments, including responses and feedback received from the community consultation process, be received and noted. 2. That it is noted there is differing views in the community but acknowledge that to proceed with the project, a site needs to be selected. 3. That the site at Apex Park be identified as the site for the inclusive All-Abilities Playground project at Bermagui. 4. That those that provided input through the consultation process and the members of the Community Advisory Group be thanked for their contribution. |
Executive Summary
In December 2018 the Funding Deed for the Stronger Country Communities Fund Round 2 grant program was finalised. Council received funding of $376,000 through the Fund to deliver an All-Abilities Playground in Bermagui. Council has committed a further $42,000 to the project through an asset renewal contribution, bringing the total project value to $418,000.
The Funding Deed milestone requires 50% of the project funds to be expended by 30 October 2019. To commence delivery of this project, community engagement has taken place on the proposed location for the All-Abilities Playground. This report presents to Council the feedback gained through the community consultation period, and the recommendations made by the Community Advisory Group.
Background
The Stronger Country Communities Fund invests in infrastructure projects in regional NSW communities to improve the lives of residents and enhance the attractiveness of these areas as vibrant places to live and work.
Provision of an inclusive regional play space is valuable not only to the local community but also is an important asset to accommodate the needs of many tourists who visit Bermagui for their holidays, as well as other special events such as the Four Winds Festival or Sculpture Bermagui. Currently, there is no regional inclusive All-Abilities Playground in Bermagui.
Councillors will be aware there are a number of other projects in various stages of consideration and planning in Bermagui. Both options exhibited will work with future projects and planning. Both have merit; and pros and cons. Neither is a poor choice, it is a matter of selecting a preferred option to move ahead with.
To deliver this opportunity to the Bermagui community, Council has undertaken community consultation to provide feedback on the preferred location of the All-Abilities Playground. In terms of developing the project further, more detailed concept designs working with the merits of the selected site is very important. Site specific concept plan development follows the confirmation of the site.
Community Engagement
Consultation undertaken
In total: 418 votes were received; 22 comments via Council website; 52 comments via Council Facebook page; and 12 written submissions of which one submission had an attached petition of 169 signatories. The above figures represent good engagement across the community. It is noted there is scope within the differing means of providing feedback for duplicate submissions. All community consultation submissions are attached to the report.
Feedback Methods
· Online survey poll and comments through Bega Valley Shire Council (BVSC) ‘Have Your Say.’
· Paper based voting was provided to Bermagui Preschool and Bermagui Public School to enable feedback from children and families.
· Hard copy votes were also collected, with collection points at Bermagui Library and Bermagui Information Centre.
· Written submissions were also received.
Media Social
Consultation was promoted through social media, with the initial Facebook post reaching 6,990 people and the follow up reminder post reaching 1,595 people.
Schools/Centre Direct
Direct contact was made with key Bermagui stakeholders including Bermagui Pre-School, Bermagui Primary School and the Visitor Information Centre. Promotional material was displayed in Bermagui Library and a flyer distributed to local businesses to raise the profile of the consultation
Online - BVSC ‘Have your Say’
The key method of consultation was through a ‘poll question’ asking members of the community to vote on their preferred site. This poll was hosted on the BVSC ‘Have Your Say’ page which also provided opportunity to leave comments.
Community Advisory Group
A Community Advisory Group specific to this project was formed, made up of three Bermagui community members based on their knowledge, skills and experience with either construction, community engagement, early childhood learning or commercial interests including local tourism.
The intent of the Community Advisory Group was to secure a balanced discussion from differing perspectives within the community. Each of the members is well known in the community and is known to be advocates for their respective organisations. Each were asked of their interest prior and agreed to be on the Community Advisory Group. Each knew there will be differing opinions feedback from the broader community and was willing to offer their time to engage in the process and with the community. This has not been easy, and the Group’s contribution individually and collectively has been a valuable part of the process.
The Community Advisory Group met following the completion of the consultation period to consider feedback and provide a recommendation for Council’s consideration on site selection.
Consultation Planned
As the project progresses into concept design, there will be further opportunity for the community to have input into park themes and priorities for key elements and play activities. It is noted there will also be differing opinions in this process.
While the consultation feedback is an important part of the design process, it will be important for there to be an understanding that the designer (to be selected from an open public tender request for quote process) will apply their experience and design knowledge to deliver a balanced and inclusive play space. It is expected the Community Advisory Group will again be an important part of this process. The draft Concept Plan will be placed on public exhibition for notification. It will be important to be able to move through this process to enable play equipment to be selected and ordered to work toward the Funding Deed milestones.
Council consideration of input
Council is requested to formally consider the community feedback gained through consultation period as attached, the recommendation provided by the Community Advisory Group and select a site for the inclusive All-Abilities Playground. Following site selection, a Request for Quote (RFQ) will be advertised requesting proposal from suitably qualified specialist play space designers to develop concept plans for the project based on site requirements, consultation feedback and project budget.
Legal /Policy
Planning
Both proposed sites at Dickinson Park and Apex Park are within Council managed Crown Reserve 83225. It is zoned RE1 Public Recreation Council Local Environment Plan 2013 (CLEP 2013).
Regulations regarding development of recreation facilities are often addressed under Division 12 of State Environmental Planning Policy (Infrastructure) (Infrastructure SEPP). The upgrade of the playground will be complying development under the Infrastructure SEPP.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Strategic Alignment
Relevant Delivery Program 2017 – 2021 Goals are:
Goal 2: We are an active, healthy community with access to good quality recreation and sporting facilities, and medical health care.
Goal 12: Our Council is financially sustainable and services and facilities meet community need.
The funding to deliver the inclusive playground at Bermagui was confirmed after the 2018/19 Operational Plan was adopted. The project is included in the draft 2019/20 Operational Plan.
Asset Management
Council has an adopted Recreation Asset Management Plan 2017. This Plan puts a focus on renewing existing assets and/or linking capital upgrades and new assets to adopted Strategic Plans.
The existing playgrounds at Apex Park and Dickinson Park are included in the adopted Recreation Asset Management Plan. It has been identified there is a gap in provision of a ‘regional’ playground in Bermagui. The project is an upgrade of one of the current playgrounds and will fill that gap.
The project is directly related to renewal and upgrade of an existing asset (at the preferred site). Both sites are popular and will fit the use and purpose. This will see the upgraded asset being very well used and provide good value to the community in terms of both initial capital cost (grant funded) and ongoing operational costs.
The site not selected will be included for renewal within Council’s Asset Renewal Program. Acknowledging there will be a significantly upgraded regional playground nearby (approx. 460m), that renewal will be a basic ‘local’ level facility to prevent ‘asset inventory creep’ to see the playground asset levels across the Shire managed at a sustainable level.
Economic
The development of an inclusive All-Abilities Playground in Bermagui will benefit local businesses. The project links directly to the ‘accessible and inclusive tourism market’.
Risk
Delivering the project within the project time frame:
Council has submitted funding applications for similar projects and successful delivery of the Bermagui project will help support future funding applications. Selecting a site and progressing with concept design to enable play equipment to be selected and ordered, will be important to meeting the funding milestones.
Community push back:
There is a risk those in the community that preferred an alternate site to that selected will push back and seek mechanisms to have the decision of Council reviewed or overturned. If this was to happen this would impact on meeting funding milestones. This action typically is very resource demanding in terms of Council officers’ time which inevitably directly impacts this particular project, as well as others.
There will be opportunity through the design development of the project to include reference to cultural heritage.
Financial and resource considerations
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Funding source |
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Amount |
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Stronger Country Communities Fund Round 2 |
$ |
376,507 |
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BVSC Asset Renewal |
$ |
41,834 |
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Total Project |
$ |
418,341 |
Options
Two site options were put forward during the community consultation process.
1. Apex Park
2. Dickinson Park
The reason these two sites were put forward with community consultation was fundamentally based on an asset management approach. They are the locations of existing playgrounds and either site will be suitable for the development of an inclusive All-Abilities Playground.
· Asset management - There is not a playground there at present. (Did not want to encourage a perception of third playground or a further discussion on which of the two existing playgrounds would be removed).
· Traffic and parking. (There can be significant traffic and parking movements in the area, particularly with fishing boats and trailers which can make the site constrained).
· Other uses – (The area is well suited to other uses, which have limited other options in town such as outdoor courts or expansion of skate / scooter / bike activities. Locating an All-Abilities Playground there will limit or complicate other uses in the future).
Considered collectively, these are the reasons a site near the skate park was not included as an option in the consultation.
The Community Advisory Group considered the feedback received, the attributes of the two sites included in the consultation, and the reasons stated above for not including the skate park site in the consultation. The Community Advisory Group considered the reasons provided above as reasonable in their consideration of the options.
A matrix assessment can be a useful tool to measure a range of options across common project criteria. Using a matrix provides consistent and comparable assessment and scoring and provides some direction on the most balanced option when considering a range of important aspects to the project.
Council officers undertook a matrix assessment of the options presented in the consultation. (Noting the interest in the skate park site it was also included for comparison. The table is presented below.)
A matrix assessment of the consultation options is provided. Scoring is out of five with a positive receiving a higher score. A three is typically an acceptable / average / workable assessment.
Recommendation
There has been a good level of engagement from the community in regard to the preferred location of the inclusive All-Abilities Playground. The Community Advisory Group has provided very useful insight and consideration of matters raised generally through the community.
Both the options presented in the community consultation are workable. When considering the attributes of the two sites included in the consultation, the reasons stated above for not including the skate park site in the consultation and all feedback received, the result is quite even reflecting both Apex Park and Dickinson Park as suitable locations.
However, the Apex Park site is the more resolved in terms of access to existing facilities and the site’s ability to apply the ‘Everyone Can Play’ guidelines. This is reflected in the matrix scoring above and the recommendation of the Community Advisory Group. Apex Park is the recommend site for the project.
Attachments
1⇩. Bermagui All Abilities - Location Consultation Summary FINAL 06062019
2⇩. Bermagui All Abilities Playground Location - Community Advisory Group Comments 070619
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Council |
26 June 2019 |
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Item 11.2 - Attachment 1 |
Bermagui All Abilities - Location Consultation Summary FINAL 06062019 |
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26 June 2019 |
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Item 11.2 - Attachment 2 |
Bermagui All Abilities Playground Location - Community Advisory Group Comments 070619 |
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Item 11.3 |
11.3. Bega Valley Local Traffic Committee
This report recommends Council adopt the recommendations of the Bega Valley Local Traffic Committee from the meeting held on 5 June 2019.
Director Assets and Operations
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That Council adopt the following recommendations of the Bega Valley Local Traffic Committee: Bega Tathra Community Bike Ride 1. That, subject to conditions, sections of the Bega-Tathra Road be temporarily closed between 9am to 12pm (rolling closures) on Sunday, 22 September 2019 for the Bega-Tathra Community Ride. 2. That organisers of the Bega-Tathra Community Ride engage a specialist traffic event consultant to prepare a comprehensive Traffic Management Plan encompassing all the required short-term closures for access driveways and side roads onto Bega Tathra Road. 3. That the proposed traffic arrangements for the Bega-Tathra Community Ride on Sunday, 22 September 2019 be deemed a Class 2 special event and it be conducted under an approved Traffic Control Plan, in accordance with the Roads and Maritime Services (RMS) Traffic Control Manual. 4 That persons involved in the preparation and implementation of the Traffic Control Plan must hold the appropriate RMS accreditation. 5. That organisers have approved and current public liability insurance of at least $20 million indemnifying Council, Police and Roads and Maritime Services by name for the event. 6. That organisers have written Police approval prior to conducting the event. 7. That letters be sent to landowners seeking written approval for the closure of private gates. 8. That Police and Council review the Traffic Control Plan prior to the event being given final approval. Installation of Temporary No Stopping Zone, Arthur Kaine Drive, Merimbula Council approve the installation of a “No Stopping” zone on the western side of Arthur Kaine Drive for a length of 115 metres, north and south of the access driveway to the Merimbula Airport. |
Executive Summary
The Local Traffic Committee is primarily a technical review committee and is not a Committee of Council. Local Traffic Committees operate under delegation from NSW Roads and Maritime Services (RMS) who are responsible for traffic control on all New South Wales roads. Their role is to advise Council on traffic control matters that relate to prescribed traffic control devices or traffic control facilities for which Council has delegated authority.
It is a requirement for Council to formally adopt the recommendation from this Committee prior to action being taken. The recommendations were supported unanimously by the Committee.
The recommendations in this report are a direct reflection of the recommendations from the Bega Valley Local Traffic Committee.
Attachments
1⇩. Bega-Tathra Community Bike Ride NSW Bike Week Stage Details
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Council |
26 June 2019 |
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Item 11.3 - Attachment 1 |
Bega-Tathra Community Bike Ride NSW Bike Week Stage Details |
Council |
26 June 2019 |
12.1 Notice to the NSW Minister for Lands and Forestry of Council's intention to divest of management responsibilities over several NSW Government assets.......................................................................................................... 73
12.2 Adoption of Revised Delivery Program 2017- 2021 and Operational Plan 2019-2020 and Annual Budget 2019-2020............................................... 73
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Council 26 June 2019 |
Item 12.1 |
12.1. Notice to the NSW Minister for Lands and Forestry of Council's intention to divest of management responsibilities over several NSW Government assets
A Resolution of Council is required to give notice to the NSW Minister for Lands and Forestry of Council’s intention to divest of its management responsibilities over several New South Wales (NSW) Government assets.
Director Assets and Operations
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1. That Council receive and note the report. 2. That Council give formal notice to the New South Wales Minister for Lands and Forestry of Council’s intention to divest of its management responsibilities under the Crown Land Management Act 2016 (NSW) for New South Wales Government assets located within the following reserves:
3. That Council authorise the General Manager and Mayor to execute the necessary documentation relating to the above divestment of management responsibilities under the Crown Land Management Act 2016 (NSW). |
Executive Summary
Section 377(1)(s) of the Local Government Act 1993 (NSW) (LG Act) states that the making of an application, or the giving of a notice to the Governor or Minister is a non-delegable function, meaning a Resolution of Council is required for such purposes.
Background
A report to Council’s Ordinary Meeting of 13 December 2017 (13.2 – Asset review – setting the framework for 2018/19 and into the refocus of the Long Term Financial Plan) identified these New South Wales (NSW) Government buildings for return to Crown as a means of streamlining Council’s asset management approach. Council is very supportive of the work emergency services agencies do in our local area and wish to support volunteers and agencies in every way possible which includes identifying all elements of an asset lifecycle and the costs associated with keeping an asset operational. Council is committed to advocating on behalf of the community, volunteers and agencies operating these NSW Government owned assets to ensure the lifecycle demands of operations, maintenance and renewal for the buildings are adequately funded.
Council is extremely constrained in its management of assets within a diminishing budget and the highly controlled rate pegging regime in place in NSW and is of the firm belief the NSW Government should provide suitable funding for State owned assets or manage their use directly with building occupiers.
Given the practice of managing Crown Land in the Shire has changed significantly as a result of the Crown Land Management Act 2016 (NSW) (CLM Act) which came into force on 1 July 2018, it seems timely to progress the above Resolution.
Prior to commencement of the CLM Act, Council was appointed Reserve Trust Manager of 95 Crown Reserves within the Shire which automatically transitioned under the new CLM Act to Council as Crown Land Manager imposing full care, control and management responsibilities for these Crown Reserves on Council. All existing assets, liabilities, tenures and contracts of the Reserve Trust will automatically transition to Council as Crown Land Manager. To support transition to the new regime for Councils managing Crown Land, the abolition of Reserve Trusts managed by Councils is delayed until 1 July 2019.
A Resolution of Council is being sought to give notice to the NSW Minister for Lands and Forestry of Council’s intention to divest of its management responsibilities for NSW Government assets as outlined in the above table and shown in the attached diagrams.
Options
The options available to Council are:
1. Proceed with notification to the NSW Minister for Lands and Forestry of Council’s intention to divest of its management responsibilities for the NSW Government assets outlined in the above table and shown in the attached diagrams.
2. Retain all management responsibilities for the NSW Government assets outlined in the above table and shown in the attached diagrams. Retaining management of these assets will require the identification of funds to undertake necessary works on the buildings, ongoing maintenance and operational budgets.
3. Other options, as raised and resolved by Councillors.
Community Engagement
Consultation Planned
Council officers intend to liaise with building occupiers to explain Council’s intention and it will be a requirement of divestment of management responsibilities that all existing uses and occupations of these building, continue into the future as a direct agreement with the NSW Government rather than Council as Crown Land Manager.
Financial and resource considerations
There are no direct financial implications from this report however the actions when implemented will inform the refocusing of the Council’s Long Term Financial Plan and Asset Management Plans.
Legal /Policy
The proposed divestment of these NSW Government assets will inform the development of future Operational Plans, Budgets and Asset Management Plans.
Section 377(1) of the Local Government Act 1993 states that the giving of a notice to the Governor or Minister is a non-delegable function, meaning a Resolution of Council is required.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Strategic Alignment
A review of buildings that Council is currently managing on behalf of the NSW Government, contributes to improving Council’s asset management approach. In addition to the NSW Government assets identified in this report, there may be other assets under Council’s care and control which may be identified for divestment in the future.
Council has clearly resolved to focus on improving the commitment to asset management in its adopted Integrated Planning and Reporting documents and the proposed divestment of these NSW Government assets is in line with that commitment.
Due to the impending date of transition to the new regime for Councils managing Crown Land through the abolition of Reserve Trusts managed by Councils as of 1 July 2019, it is timely to formally put the NSW Government on notice prior to this date.
Economic
Historically, the NSW Government vested buildings in Council without consideration of ongoing operation, maintenance and replacement needs. These assets are approaching later years of life and will require replacement. To ensure the community assets identified in this report are maintained into the future, management from the NSW Government is necessary due to Council’s Budget constraints.
Risk
The operations, maintenance and capital renewals required for these buildings cannot be solely funded by Council and therefore may create risk consequences for the organisation including increased exposure to injury and liability and higher reactive maintenance costs which cannot be managed.
Attachments
1⇩. NSW Government assets proposed for divestment
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Council 26 June 2019 |
Item 12.2 |
12.2. Adoption of Revised Delivery Program 2017- 2021 and Operational Plan 2019-2020 and Annual Budget 2019-2020
The Draft Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020 have been publicly exhibited in accordance with the legislative requirements of the Local Government Act 1993 and are recommended for adoption.
Director Business and Governance
|
1. That Council adopt the exhibited Bega Valley Shire Delivery Program 2017 – 2021, Operational Plan 2019 – 2020 and Annual Budget 2019 – 2020 subject to the changes outlined in this report. 2. That Council note the Revenue Policy will be adopted at its meeting on 17 July 2019. 3. That Council note the revised Delivery Program 2017-2021 and Operational Plan 2019-20 will be published on Council’s website by 24 July 2019. |
Executive Summary
Council has been provided with all written submissions that were made concerning the Draft Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019-2020 including the Annual Budget 2019 – 2020. Copies of all submissions and a detailed summary of submissions and comments are included in the supplementary attachments to this report.
It is appropriate for Council to adopt in accordance with Sections 404 and 405 of the Local Government Act 1993, the amended Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020 and Budget for 2019-2020.
Background
At its meeting on Wednesday 10 April 2019, Council resolved to place the Draft Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020 including the Budget for 2019-2020 on public exhibition for 28 days covering the period Thursday 11 April 2019 to Thursday 9 May 2019 in accordance with Sections 404 and 405 of the Local Government Act 1993.
Revised Bega Valley Shire Delivery Program 2017-2021 and Operational Plan 2019-2020 including Annual Budget
The Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020 outlines what Council will do in the medium term to deliver services, projects, capital works and asset maintenance.
The Delivery Program 2017-2021 was originally adopted in June 2017 and has been revised to reflect the new organisational structure and resulting redirection of services, legislation changes, fire recovery activities and an increase in funding opportunities particularly from the NSW State Government.
The Operational Plan details what activities Council plans to achieve in the 2019 – 2020 year, which areas are responsible for achieving them and measures to track progress.
Minor changes identified by Council officers during the exhibition period, particularly duplication of items or incorrect allocation of items to sections that due to restructuring have changed, have also been corrected.
The revised Revenue Policy will be considered at the meeting on 17 July 2019 following the readvertising of updated Sewer Charges. This will meet the statutory requirement of Part 4 of the Local Government Act 1993, Making of Rates and Charges.
The Revised Delivery Program 2017-2021 and Operational Plan 2019-2020 will then be published on the website by 24 July 2019 which is 28 days following its adoption and a week following the consideration of the Revenue Policy which includes rates and charges.
With respect to the Annual Budget 2019-2020, Council acknowledges the support of the Federal Government through the Federal Assistance Grant to Council operations, and the State Government through significant project and program funding relating to a variety of service delivery areas, infrastructure projects and other activities.
Community Engagement
The Draft Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020 including the Revenue Policy 2019 – 2020 and Fees and Charges 2019 – 2020 were placed on public exhibition from Thursday 11 April 2019 to Thursday 9 May 2019, in accordance with the provisions of Section 405 of the Local Government Act 1993.
Public notices were placed in local newspapers: the Merimbula News Weekly; Eden Magnet; and Bega District News on various dates. Hardcopies of the document were available to view at Council’s Bega Office as well as the Bega, Bermagui, Eden and Tura Beach libraries. All documents were available on Council’s website during the exhibition period. There was also a number of social media posts on Council’s Facebook page and information in the Council News produced during the exhibition period.
Public and Councillor Submissions
Attached to this report is a summary of the issues raised in the two Councillor submissions and three public submissions to the draft Operational Plan received up until 5pm Thursday 9 May 2019, and responses to these submissions. One of the public submissions relates to Rates and Charges. The public and Councillor submissions are also included as appendices to the attachment.
Staff Review Presentation of Financials
The submission by the Bega Valley Shire Residents and Ratepayers Association raised some areas for improvement that Council officers concur with.
Council now has a full staffing complement in the Finance Section for the first time since early 2017. This has meant that throughout some difficult periods for the organisation there have been challenges in this area related to managing the Mayoral Fund and additional imposts through 2018 and a new audit process. The fully staffed team is now tasked with implementing a financial planning, management and reporting improvement program. A key objective of this relates to ensuring greater clarity and ease in understanding Council’s financials.
A key issue raised related the financial statements and to ensure accuracy and comparison the statements which had been presented in the draft document have been restated to remove internal transfers and allow clear comparison with previous years.
The following tables are included in the
document and present restated financials:
Key Items for Review
In addition to the above presentation and restating of financials the following items have been considered:
· External submission request for financial contribution of $10,000 to expand the current Bega Valley MicroLoans program
· Cr Bain requested an increase to the annual allocation to the Halls Committee – Council officers support this for consideration in a formal review of the Building Asset Management Plan, following the current revaluation process underway. It is recommended this be included as an action for the 2019/20 year with Budget review for 2020/21
· Cr McBain requested consideration of funding for town promotion which could be funded though the current allocation for economic development grants. Council officers note that current programs planned for the 2019/20 year including web promotions and reinvigoration will cover this aspect
· The Regional Transport Strategy was listed in the draft Budget with a funding request allocation of $250,000. It has been identified this be reduced to $100,000 for some key transport asset management items, with the remaining $150,000 available to fund some additional requirements (see below)
· Following Council’s consideration of allowances at the meeting on 12 June 2019 there is no requirement for additional funding in this area
· An allocation of $100,000 had been included to progress two aspects of the planned Special Rate Variation (SRV) application. As the tourism component will now not proceed, this amount will be reduced to $25,000 with $75,000 to be reallocated to priority unfunded projects
· Additional budget allocations of $367,000 are required to allow for:
o potential exposure for rehabilitation related to the Bega Gas Works site of $250,000
o adjustment of the library salaries budget for casual salaries omitted $37,000
o redevelopment of the Council website $80,000
Council officers recommend the allocation of the $225,000 identified from changes above be directed proportionally to these three items with the remaining $142,000 to be considered at the first Quarterly Budget Review.
Legal /Policy
Under the Local Government Act 1993, Council is required to develop and publicly exhibit documents in the Integrated Planning and Reporting Framework for a period of 28 days and consider submissions made to the Delivery program and Operational Plan prior to adoption.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Strategic Alignment
The documents when adopted, will guide the Council’s operations under the Integrated Planning and Reporting Framework.
Attachments
1⇩. 2019.06.26 Attachment Summary of Submissions and Changes to 2019 - 2020 Draft DPOP
2⇩. 2019.06.29 Attachment Draft Delivery Program and Operational Plan with tracked changes 2019 - 2020
3⇩. 2019.06.29 Attachment Final Draft Delivery Program and Operational Plan 2019 - 2020
|
Council |
26 June 2019 |
|
Item 12.2 - Attachment 1 |
2019.06.26 Attachment Summary of Submissions and Changes to 2019 - 2020 Draft DPOP |
|
Council |
26 June 2019 |
|
Item 12.2 - Attachment 1 |
2019.06.26 Attachment Summary of Submissions and Changes to 2019 - 2020 Draft DPOP |
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Council |
26 June 2019 |
|
Item 12.2 - Attachment 1 |
2019.06.26 Attachment Summary of Submissions and Changes to 2019 - 2020 Draft DPOP |
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Council |
26 June 2019 |
|
Item 12.2 - Attachment 2 |
2019.06.29 Attachment Draft Delivery Program and Operational Plan with tracked changes 2019 - 2020 |
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Council |
26 June 2019 |
|
Item 12.2 - Attachment 2 |
2019.06.29 Attachment Draft Delivery Program and Operational Plan with tracked changes 2019 - 2020 |
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Council |
26 June 2019 |
|
Item 12.2 - Attachment 2 |
2019.06.29 Attachment Draft Delivery Program and Operational Plan with tracked changes 2019 - 2020 |
|
Council |
26 June 2019 |
|
Item 12.2 - Attachment 3 |
2019.06.29 Attachment Final Draft Delivery Program and Operational Plan 2019 - 2020 |
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Council |
26 June 2019 |
|
Item 12.2 - Attachment 3 |
2019.06.29 Attachment Final Draft Delivery Program and Operational Plan 2019 - 2020 |
|
Council |
26 June 2019 |
|
Item 12.2 - Attachment 3 |
2019.06.29 Attachment Final Draft Delivery Program and Operational Plan 2019 - 2020 |
|
Council |
26 June 2019 |
13.1 Adoption of Fees and Charges 2019 - 2020.............................................. 73
13.2 Certificate of Investment........................................................................... 73
13.3 Impact of Misstatement of 2017-2018 Budget in the Annual General Purpose Financial Statements................................................................... 73
|
Council 26 June 2019 |
Item 13.1 |
13.1. Adoption of Fees and Charges 2019 - 2020
The Draft Fees and Charges have been publicly exhibited in accordance with the legislative requirements of the Local Government Act 1993 and are recommended for adoption.
Director Business and Governance
|
That Council make each fee and charge for 2019 – 2020 in accordance with the exhibited draft Fees and Charges subject to the changes outlined in this report. |
Executive Summary
No members of the public made submissions relating to the exhibited Fees and Charges 2019 – 2020. There was one Councillor submission that included two comments relating to the draft Fees and Charges. These comments, along with responses, are summarised in the report below. A number of minor internal amendments were made to the draft Fees and Charges due to transcription errors, omissions or there being further clarification required. A summary of these internal amendments, including a rationale for each amendment, is included in a supplementary attachment to this report. Also attached is the revised Fees and Charges document for 2019 – 2020 incorporating these amendments.
In accordance with Section 608 of the Local Government Act 1993, Council is required to adopt the Fees and Changes for 2019 – 2020 which operate from 1 July 2019.
Background
At its meeting on Wednesday 10 April 2019, Council resolved to place the Draft Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020 on public exhibition for 28 days covering the period Thursday 11 April 2019 to Thursday 9 May 2019 in accordance with Sections 404 and 405 of the Local Government Act 1993.
The Draft Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020 included the draft Fees and Charges for 2019 – 2020.
Fees and Charges 2019 – 2020
The Council determines fees and charges for a range of services such as: planning and building; library; children’s services; and facility usage. The fees and charges proposed for these services and facilities for the 2019 – 2020 year are detailed in the draft Fees and Charges document, and are aligned to Council’s pricing policy, some of which are set by statute.
Community Engagement
The Draft Revised Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020 including the Revenue Policy 2019 – 2020 and Fees and Charges 2019 – 2020 were placed on public exhibition from Thursday 11 April 2019 to Thursday 9 May 2019, in accordance with the provisions of Section 405 of the Local Government Act 1993.
Public notices were placed in local newspapers: the Merimbula News Weekly; Eden Magnet; and Bega District News on various dates. Hardcopies of the document were available to view at Council’s Bega Office as well as the Bega, Bermagui, Eden and Tura Beach libraries. All documents were available on Council’s website during the exhibition period. There were also a number of social media posts on Council’s Facebook page and information in the Council News produced during the exhibition period.
Public and Councillor Submissions
Submissions relating to the exhibited Fees and Charges for 2019 – 2020 were accepted up until 5pm, Thursday 9 May 2019. No public submissions were received. There was one Councillor submission that included comments relating to the exhibited Fees and Charges. The following table contains a brief summary of the comments raised by the Councillor and the response provided. The Councillor’s original submission is also included in Appendix 4 of the supplementary attachment to Council report to this meeting, on the Delivery Program and Operational Plan outlining all Councillor and public submissions to the Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2019 – 2020.
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Councillor comment |
Response |
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The Halls 355 Committee has resolved to request that hall hire not increase in 2019/20 as current rates are adequate. |
The fees and charges have increased in line with other fees and charges however, the Halls Committee resolved to recommend to Council they should remain the same. This is a decision that would require a Council Resolution to enact, given that operational expenditures continue to increase for all services Council provides including Halls. In 2020/21 the Halls and Cemeteries service area will be recommending an increase in the maintenance budget. |
|
Fees for cemeteries are high and increasing, would prefer not to increase fees this year. |
Noted, however this is in line with the cost to Council for internment by external contractors and Council is seeking to cover costs and maintain the current level of the Cemetery reserves into the future. Fees are only increasing in line with CPI. |
Internal Amendments
In addition to the comments considered above, during the exhibition period, a number of minor omissions, calculation errors and clarifications were detected in the exhibited Fees and Charges document. A summary of these internal amendments, including a rationale for each amendment made, is included in a supplementary attachment to this report. Also attached is the Revised Draft Fees and Charges document for 2019 – 2020 incorporating these changes.
Legal /Policy
Under the Local Government Act 1993, Council is required to develop and publicly exhibit documents in the Integrated Planning and Reporting Framework for a period of 28 days and consider submissions made to the Operational Plan prior to adoption.
Attachments
1⇩. 2019.06.26 Attachment Revised Draft Fees And Charges Report 2019-2020
2⇩. 2019.06.26 Attachment amendments to 2019-2020 Draft Fees and Charges
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Council |
26 June 2019 |
|
Item 13.1 - Attachment 1 |
2019.06.26 Attachment Revised Draft Fees And Charges Report 2019-2020 |
|
Council |
26 June 2019 |
|
Item 13.1 - Attachment 1 |
2019.06.26 Attachment Revised Draft Fees And Charges Report 2019-2020 |
|
Council |
26 June 2019 |
|
Item 13.1 - Attachment 1 |
2019.06.26 Attachment Revised Draft Fees And Charges Report 2019-2020 |
|
Council |
26 June 2019 |
|
Item 13.1 - Attachment 2 |
2019.06.26 Attachment amendments to 2019-2020 Draft Fees and Charges |
|
Council |
26 June 2019 |
|
Item 13.1 - Attachment 2 |
2019.06.26 Attachment amendments to 2019-2020 Draft Fees and Charges |
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Council 26 June 2019 |
Item 13.2 |
13.2. Certificate of Investment
This report details Council’s Investments at the end of May 2019.
Director Business and Governance
|
1. That Council receive and note the attached reports indicating Council’s investment position as at 31 May 2019. 2. That Council note the certification of the Responsible Accounting Officer. |
Executive Summary
I, Graham Stubbs, as the Responsible Accounting Officer of Bega Valley Shire Council (BVSC), hereby certify the investments listed in the attached reports have been made in accordance with Section 625 of the Local Government Act 1993 (the Act), and clause 212 of the Local Government (General) Regulation 2005 and Council’s Investment Policy.
Also, all investments have been appropriately recorded in Council’s financial records and reconciled on a monthly basis.
Background
Under the legislation and Regulations mentioned below, the Responsible Accounting Officer must present to Council on a monthly basis, the status of the investments held by Council. The Responsible Accounting Officer must detail the investments held, and their compliance with both internal Policy and external regulation under the Ministerial Order of Investments.
In accordance with the recommendations made by the Office of Local Government (OLG) Investment Policy Guidelines published in May 2010, the monthly Investments Reports are attached to the Business Paper. This allows a stand-alone report to be published on Council’s website for the public to view without having to peruse the Council’s Agenda for the relevant meeting.
Financial and resource considerations
The attached report indicates a current investment portfolio of $81,805,588 at 31 May 2019. These funds can be broken into the following Funds:
|
Table 1: Investments by Fund $’000 |
|||
|
Fund |
March 2019 |
April 2019 |
May 2019 |
|
General Fund |
$32,755 |
$29,967 |
$25,059 |
|
Water Fund |
$18,634 |
$18,462 |
$19,448 |
|
Sewer Fund |
$35,570 |
$34,731 |
$37,298 |
|
TOTAL |
$86,959 |
$83,160 |
$81,805 |
· Each Fund’s allocation can only be utilised on its specific operations. For example, Water Fund cannot use its financial resources on General Fund projects, etc.
As at 31 May 2019, BVSC’s available cash balance was $3,485,067 and the investment balance was $81,805,588. The investments are broken up as follows:
· TCorpIM Cash Fund - $34,228,680
· TCorpIM Strategic Cash Fund - $47,576,908
With respect to the Fund’s monthly distributions, the custodian calculates the Fund’s earnings at month end and then pays a distribution based on these earnings. Distributions are paid to investors by way of the issue of additional units.
Legal /Policy
Section 625 of the Act determines money may only be invested in a type of investment authorised by Order of the Minister for Local Government and published in the Local Government Gazette. The most recent Ministerial Order of Investment was published 17 February 2011.
Clause 212 of the Local Government (General) Regulation 2005 determines the Responsible Accounting Officer must provide Council with a written report setting out details of all money Council has invested under Section 625 of the Act.
The report must also include a Certificate as to whether or not the investments have been made in accordance with the Act, the Regulations and the Council’s Investment Policy.
Council has an Investment Policy published under Policy number 6.07. This Policy is reviewed every 4 years by Council and annually by Council officers.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Environmental / Sustainability
TCorp has provided BVSC with their Investment Stewardship Policy (attached to the Business Paper to Council on 31 January 2018).
In order to deliver the best long-term risk adjusted returns for clients, TCorp integrates Environmental, Social and Governance (ESG) factors into the investment processes of the appointed investment managers. TCorp will evaluate the ESG policies and practices of its investment managers as part of the manager selection process, as well as during periodic manager reviews.
Attachments
1⇩. 2019.05.31 Investment Report TCorp Strategic Fund May 2019
2⇩. 2019.05.31 Investment Report TCorp Cash Fund May 2019
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Council |
26 June 2019 |
|
Item 13.2 - Attachment 1 |
2019.05.31 Investment Report TCorp Strategic Fund May 2019 |
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Item 13.3 |
13.3. Impact of Misstatement of 2017-2018 Budget in the Annual General Purpose Financial Statements
Community feedback identified the budget figures presented in the 2017-2018 General Purpose Financial Statements were misstated and this report clarifies the impact of this misstatement.
Director Business and Governance
|
That Council note this report. |
Executive Summary
Community feedback from the Bega Valley Shire Residents and Ratepayers Association (BVSRRA) identified the budget figures presented in the 2017-2018 General Purpose Financial Statements were misstated. Council officers acknowledged this misstatement and sought advice from the Office of Local Government (OLG) as to the most appropriate course of action to take in this situation.
Initial advice from the OLG was they did not feel it necessary to amend the statements as the impact of the misstatements was not “material” and this was communicated to the BVSRRA.
The impact of the misstatements was presented to Councillors as a memo on 21 February 2019.
Following further inquiries from BVSRRA to the NSW Audit Office and the OLG, the OLG has recommended a formal Council report be presented to Council to ensure the public are fully informed of the impact of the misstatement.
Background
The annual Financial Statements are externally audited by the NSW Audit Office (NSWAO) under the Local Government Act 1993 – Part 3 Financial Management.
While the NSWAO may review the Budget and Council’s performance against the adopted Budget, they do not, however, audit the Budget figures in the annual Financial Report, or the variances.
Since the publishing of the 2017-18 audited Financial Statements, Council’s finance department has recruited a Finance Manager, a Management Accountant and several clerical officers to provide a full complement of staff. This is providing the resources to review processes and implement quality improvements to both the internal and external reporting processes. This is an ongoing process, but positive results are beginning to be realised which will minimise the likelihood of similar misstatements in the future.
The table below was presented to Councillors in a briefing on 21 February 2019.
|
Impact of
Misstated Budget Reported in |
|||||||
|
Original Budget |
Reported Budget |
Difference |
|||||
|
Income |
|||||||
|
Rates |
49,105 |
48,728 |
-377 |
||||
|
User Charges & Fees |
18,186 |
17,901 |
-285 |
||||
|
Investment Income |
1,379 |
1,579 |
200 |
||||
|
Other Revenues |
843 |
797 |
-46 |
||||
|
Operating Grants |
13,472 |
17,461 |
3,989 |
||||
|
Capital Grants |
6,522 |
5,370 |
-1,152 |
||||
|
Gain on Asset Sales |
0 |
1,350 |
1,350 |
||||
|
Total Income |
89,507 |
93,186 |
3,679 |
||||
|
Expenses |
|||||||
|
Employee Costs |
31,920 |
32,180 |
-260 |
||||
|
Finance Costs |
2,243 |
1,656 |
587 |
||||
|
Materials & Contracts |
21,673 |
28,995 |
-7,322 |
||||
|
Depreciation |
26,229 |
22,554 |
3,675 |
||||
|
Other Expenses |
6,757 |
5,776 |
981 |
||||
|
Total Expenses |
88,822 |
91,161 |
-2,339 |
||||
|
Net Result |
685 |
2,025 |
1,340 |
||||
|
Net result as a % of Revenue |
1.50% |
||||||
The following table of material Budget variations was reported in Note 17 of the Financial Statements.
The following would have been reported at Note 17 had the misstatements not occurred.
The following table of Material budget variations was reported in Note 17 of the Financial Statements.
The following would have been reported at Note 17 had the misstatements not occurred.
Financial and resource considerations
The misstatements of the Budget figures have not had an impact on the actual financial results as audited by the NSWAO for the 2017-2018 Financial Year.
The forward projections and future financial performance of the Council is also not impacted by these misstatements.
It is understood by Council officers this has been confirmed by the NSWAO to the Bega Valley Shire Residents and Ratepayers Association.
|
Funding source |
|
Amount |
|
No funding impact |
$ |
0 |
Legal /Policy
While Council officers acknowledge that misstatements did occur, advice from both the Office of Local Government and the NSW Audit Office has confirmed there has not been a material breach of the Local Government Act 1993 – Part 3 Financial Management.
Attachments
Nil
|
Council |
26 June 2019 |
In accordance with the Local Government Act 1993, and the Local Government (General) Regulation 2005, in the opinion of the General manager, the following business is of a kind as referred to in Section 10A(2) of the Act, and should be dealt with in a Confidential Session of the Council meeting closed to the press and public.
RecommendationThat Council adjourn into Closed Session and members of the press and public be excluded from the meeting of the Closed Session, and access to the correspondence and reports relating to the items considered during the course of the Closed Session be withheld unless declassified by separate resolution. This action is taken in accordance with Section 10A(2) of the Local Government Act, 1993 as the items listed come within the following provisions:
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