Agenda of Council - 29 June 2022

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 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.

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?

Local Government Act 1993 and Model Code of Conduct

For more detailed definitions refer to Sections 442, 448 and 459 or the Local Government Act 1993 and Bega Valley Shire Council (and Model) Code of Conduct, Part 4 – conflict of interest.

Agency advice

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.

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
Office of Local Government	(02) 4428 4100	olg@olg.nsw.gov.au	http://www.olg.nsw.gov.au/
NSW Ombudsman	(02) 8286 1000 Toll Free 1800 451 524	nswombo@ombo.nsw.gov.au	www.ombo.nsw.gov.au

Disclosure of pecuniary interests / non-pecuniary interests

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 Chief Executive Officer 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)

Item no & subject
Pecuniary Interest	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.
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.
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 5.11 of Council’s Code of Conduct. However, I intend to continue to be involved with the matter.
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.
If Pecuniary	Leave chamber
If Non-pecuniary (tick one)	Disclose & vote Disclose & not vote Leave chamber
Reason for action proposed	Clause 5.11 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
Print Name	I disclose the above interest and acknowledge that I will take appropriate action as I have indicated above.
Signed

NB: Please complete a separate form for each Item on the Council Agenda on which you are declaring an interest.

Council 29 June 2022

Item 9.1

9.1. Adoption of Water & Sewer Strategy

The Draft Water & Sewer Strategy 2022-2025 have been publicly exhibited in accordance with the legislative requirements of the Local Government Act 1993 and is recommended for adoption.

Director Assets and Operations

Officer’s Recommendation

1. That Council note the submissions received and the summary of submissions with Council officer responses included at attachment 1

2. That Council adopt the Water & Sewer Strategy 2022-2025 including the preferred scenario included at attachment 2

3. That Council officers advise those that made submissions during public exhibition period of Council’s decision

Executive Summary

The Water & Sewer Strategy 2022-2025 was developed with a key focus on our customers. Its primary purpose is to share with our community how we plan to meet their needs, now and into the future. There is also information for our regulators and guidance for our staff.

This report should be read in conjunction with the strategy. Submissions made by the public with staff responses are outlined in the attachment.

The strategy is a live document. Supporting documents like the issues list will be updated by staff without Councillor endorsement. Any major revisions to the strategy or any revisions to the financial plan will come back to Council to be re-adopted. The Long-Term Financial Plan will be re-adopted annually. Corporate measures will be reported every six months. Changes to corporate measures, and any trends or targets to add to measures, will require Councillor endorsement.

The strategy will be re-written for the next term of the Council for adoption in 2025 in-line with the Integrated Planning and Reporting cycle.

Background

As a Council owned and operated water utility, we follow the regulatory requirements of a local government authority and a local water utility. Under the Integrated Planning and Reporting (IPR) Framework and the strategic planning requirements of our financial regulator, Department of Planning and Environment (DPE), we have prepared a draft 3-year Water & Sewer Strategy 2022-2025.

Previously water and sewer planning was completed under the DPE Integrated Water Cycle Management (IWCM) process and the 2007 Best-Practice Management of Water Supply and Sewerage Framework.

This process was onerous and rigid and based strongly on technical engineering requirements. In late 2020, the department announced it was reviewing and revising the strategic planning process and had formed the Town Water Risk Reduction Program (TWRRP) to undertake that work.

In March 2022 DPE released its draft guidelines for completing strategic planning which are due to come into effect on 30 June 2022. Under these guidelines they have provided an increased level of flexibility to local water utilities to complete strategic planning in a manner of their choosing and according to their own risk landscape. In April 2022, DPE together with the OLG released a guide for completing strategic planning as part of the IPR framework.

The Water & Sewer Strategy 2022-2025 will form part of our submission to DPE for our strategic planning and will be our main document communicating our direction and priorities to our community, customers, councillors, and staff. More of the technical detail that our regulator is interested in and the background to the strategy development will be contained in a separate Issues Paper.

On 12 May 2021 Council resolved to delegate to the CEO authority to publicly exhibit the draft strategy for a period of 28 days in accordance with the IPR framework. This was following a workshop held with councillors on 4 May 2022 to go through key elements and obtain feedback. The draft Water & Sewer Strategy 2022-2025 was released for public consultation on 26 May 2022. The public exhibition period was completed on 23 June 2022.

Options

Our strategy started with the base scenarios that were adopted on the 3rd of November 2021.

Given that a significant portion of our planned works were already known, the options modelled related more to resourcing and delivery timelines than to any changes to key outcomes. There are still a few areas that are being investigated for a clear direction, those are the Recycled Water Strategy, the Sewer Asset Strategy, and the Water Supply Strategy. As these strategies are completed, we will review and update the Water & Sewer Strategy 2022-2025.

There were three delivery scenarios modelled for each fund, these being:

• slower

• preferred

• faster

The differences between the scenarios are discussed in detail in the long-term financial plan section of the Water & Sewer Strategy 2022-2025. The key impacts are to resourcing requirements, requirement for loans to fund capital works and appetite for risk by deferring asset renewals.

Community and Stakeholder Engagement

There are four objectives for local water utilities listed in the DPE regulatory framework. One of those is:

• services that, where possible, meet customer needs, expectations, and preferences.

The framework states that utilities

• should ensure they understand the needs of their customers and how best to meet those needs.

And show how we:

• engaged [customers] in decision-making and informed of choices between service levels, risks, and cost.

• [understood] customers’ willingness to pay for services.

Our strategy development was planned around this objective and requirements, over three rounds. Our ongoing engagement is planned to expand on what was learned for the strategy.

Engagement undertaken

In engaging with our community, we employed consultation through various mediums and used multiple rounds so we could analyse and build on previous data gathered.

Round 1

Round 1 provided insight into satisfaction levels and perceptions on levels of spending across a variety of services we provide (and some we do not). This identified our two key areas of concern; water quality and value for money. Neither of these results are a surprise and it is positive that our current planned works should have a direct impact on improving satisfaction levels.

The first round of engagement also highlighted that we have a significant portion of our community that has little awareness about what our business actually delivers and the service levels we provide.

In the future we need to consider how we can continue to further educate and engage with our customers. The DPE regulatory framework asks us to demonstrate how we are ‘supporting customers to increase water literacy’.

Round 2

This engagement focussed on the willingness to pay issue and built on the information gained from the perceptions of spending in the first round. The results indicate that there is mixed appetite to pay more for improved levels of service.

Round 3

Round 3 was centred around the exhibition of the draft strategy. We engaged informally with our primary regulator, met with business chambers, held a community information session at the Civic Centre, and promoted the strategy and the submission of feedback through traditional means and social media.

As a result of both formal and casual feedback received we will add the following issues to our issues and risk lists:

· backlog fire service provision, associated standards, and overall alignment with RFS advice

· businesses operating from residential connections are proliferating in the online gig economy and may not be paying their fair share compared to competing non-residential customers

· peak loads are driving asset spend but our charging structure does not reflect day-of-use tariffs

· fairness of overall burden of cost for sewerage services between non-residential and residential customers is disputed by some.

Three edits were also made to the strategy being:

· adding a target audience statement to the introduction

· clarifying that the long-term financial plans reflect the best-guess controls applied to our issues list and are not necessarily a financial certainty. Each issue will be addressed through a planning and options assessment process. As decisions are refined the financial plan will be adjusted and presented to Councillors.

· clarified that all figures are expressed in 2022 dollar equivalents and do not include inflation which will add to income and expenditure forecasts.

Engagement planned

Our strategy also highlights how we plan to engage in the future with specific consultation planned for our Recycled Water Strategy, project engagement, and further targeted feedback with business and developers.

Financial and Resource Considerations

The Water & Sewer Strategy 2022-2025 includes a summary of our long-term financial plan for the next 10 years.

A key focus of our strategy is how we can value manage our assets through scope management on projects, asset rationalisation for our treatment plants, and to manage our asset and renewals based on risk assessments.

In the workshop with Councillors, we discussed the lessons learnt from previous large infrastructure programs that led to Council’s current typical residential bill and our resourcing strategy includes increasing our internal engineering and oversight capabilities to ensure we are getting good value outcomes that consider the long-term financial impacts.

In the past we have been growing our cash reserves to fund these large capital works programs. The adopted financial plan also requires a loan for the water fund. We are not anticipating any new loans in the sewer fund at this stage. We are also seeking additional funding for our key projects to reduce the impact to our customers.

Financial Option Impacts | Life Cycle Costing

Our 30-year financial model provides detailed analysis of the financial impacts of our options and includes forecasts for operational costs, renewals, revenue, and new developments etc. Our model inputs have been updated to match the key assumptions used in the General Fund Long Term Financial Plan and those were extrapolated for the full 30-year model period.

Our long-term financial plan and model are regularly updated to account for changes to our operating environment and when assumptions are proven or changed. Financial plan changes are always reported back to Councillors for adoption when decisions are made.

Legal /Policy

As a Council owned and operated water utility, we follow the regulatory requirements of a local government authority and a local water utility.

In addition to the planning requirements, we also follow the legislative requirements of other regulators like NSW Health and the Environment Protection Authority, with respect to the service levels that we must provide.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Our operations are guided by the Community Strategic Plan (CSP) through our goal to “operate a contemporary local water utility that enables sustainable development, supports social wellbeing, and protects the environment”. Our service commitments are outlined in the Delivery Program and Operational Plan.

Environment and Climate Change

Our Water & Sewer Strategy 2022-2025 considers the impact to the environment and of climate change in numerous ways. Our CSP objective includes protection of the environment as a key goal. Our Issues List identifies and considers a range of climate and environmental items. We have a section in our strategy that considers circular economy and integrated water cycle management in detail. We also have committed to completing a dedicated Recycled Water Strategy and reinvesting effort in our clean energy program. Our Secure Yield Analysis and Water Sharing Plans are also being reviewed and updated.

The strategy commits to measure performance through an environment and social governance approach to improve our accountability for environmental outcomes.

Economic

Our very large infrastructure program sees significant investment in our local region that has flow on impacts to the local economy. Our preferred scenario also considers the ability to attract and retain in-house skills to invest in our local resources.

We have also committed to reviewing the financial impacts to our business customers and developers through a review of our billing procedures.

Risk

Our Water & Sewer Strategy 2022-2025 was developed based on risk identification and mitigation. The Issues List is a risk based list of goals which must be addressed through activities like projects or policy development.

Our strategy is a live document that is regularly reviewed and updated as assumptions and inputs change and develop. We regularly review our risks and priorities and adjust as necessary to ensure flexibility and adaptability.

Social / Cultural

The Water & Sewer Strategy 2022-2025 is intended to help us communicate with our customers and community about the direction and services of our business. There are numerous social and cultural implications outlined including how we intend to balance social responsibility with affordable services and where we intend to gain more involvement from our customers on aspects such as the engagement for the Recycled Water Strategy.

Our strategic objectives have put our customers at the forefront with value for money and clean drinking water as our priorities. We are committed to being financially sustainable and ensuring outcomes are appropriate and consider whole of lifecycle impacts to our current and future customers.

The strategy commits to measure performance through an environment and social governance approach to improve our accountability for social outcomes.

Attachments

1 ⇩. Attachment 1 - Water & Sewer Strategy Exhibition Feedback June 2022

2 ⇩. Attachment 2 - Water and Sewer Strategy - for adoption

Council 29 June 2022

Item 9.2

9.2. Adoption of Policy 4.07 - Water and Sewerage Services and associated procedures

The draft Water and Sewerage Services policies and procedures have been publicly exhibited in accordance with the legislative requirements of the Local Government Act 1993 and are recommended for adoption.

Director Assets and Operations

Officer’s Recommendation

1. Councillors note the submissions received and the summary of submissions with staff responses included in attachment 1.

2. Council adopt Policy 4.07 Water & Sewerage Services and procedures 4.07.1, 4.07.2, and 4.07.4, attached to this report.

3. Staff review all credit volume entitlements and adjust current 2021/2022 entitlements by assessing current use through the historic use method for the 10 years between 2009/2010 and 2018/2019.

4. Staff assign credit volume entitlements to all non-residential customers who have not yet been assigned entitlements. These shall apply from the 2022/2023 financial year and beyond.

5. As detailed in the attached procedure 4.07.2 and Council’s Revenue Policy any water used, and sewage discharged over credit volumes will attract high usage charges.

6. Credit volume entitlements will not be increased based on predicted potential future load which has not been paid for through contributions. Only current use or credits paid for through headworks contributions are to be considered for conversion to credit volumes.

7. Staff adjust the levied high usage charge for the 2020/2021 financial year for any customers who have requested a review, and where a review would result in a greater than 20% adjustment in credit volume payment.

8. Staff inform all non-residential customers of the changes.

9. Effective immediately quotes for headworks contributions will no longer be offset by unconnected charges paid in previous years. Existing quoted offsets will be honoured until 30 September 2022.

Executive Summary

Councillors resolved on 16 March 2022 that Policy 4.07 Water and Sewerage Services and associated procedures be exhibited for a minimum period of 28 days and submissions received for 42 days. The 16 March 2022 Council report is attachment 2 of this report. Exhibition occurred in March and April 2022. Two workshops were also held with Councillors on the procedures.

Councillors resolved that a further report be presented to Council following the closure of the submission timeframe. Five external submissions were made all of which were high quality and added value to the procedures, our strategy, and our activities over the next planning cycle. Staff would like to thank those who took the time to provide feedback on this exhibition. This report recommends changes due to external and staff submissions.

Background

Council is required under Section 165 of the Local Government Act 1993 to review and adopt its ‘local approvals and orders policies’ (its ‘policies’) within 12-months of the local government election.

The report submitted to Council for consideration on 16 March 2022 outlined in detail the key changes as part of the policy and procedures review and revision.

Councillors resolved on 16 March 2022 to exhibit a proposed set of 3 (three) procedures and 1 (one) policy which would replace and amalgamate the previous water and sewerage services policies and procedures to come under one policy and 4 (four) subsequent procedures. The Trade Waste Procedure remained unchanged and is due for a review in the next 18 months.

The proposed policy and procedures were exhibited for 28 days with a submission period extending for 42 days. This report provides the detail on the external submissions and the staff submissions that were received following the exhibition period.

For more detail on the proposed changes to the procedure structures and detailed amendments please see the 16 March 2022 report provided in attachment 2.

Options for applying feedback from exhibition

The below changes proposed are all optional and based on feedback. Any aspects of the procedures are open to change by Councillors.

Changes proposed after exhibition

Most of the external submissions include suggestions which are too large to include as adjustments to the proposed procedures. These generally meritorious suggestions will be addressed during the next planning cycle and included where appropriate.

The changes below will be added to the Water and Sewer Strategy 2022-2025 exhibition feedback and included in the strategy and supporting documents. This will ensure these activities are considered over the next 24 months. Findings can then be added to procedures as they are established or adopted for the next term of Council.

Subjects which staff have assessed as being worthy of consideration in the next cycle include:

· review of non-residential billing and fairness of overall burden of cost for sewerage services between non-residential and residential customers

· continuing to listen and engage with the community on the Merimbula outfall project

· understanding our investment in recycled water as a community ‘want’

· importance of asset information for development servicing plan and contributions accuracy

· replacement of development servicing plans and headworks contributions price path

· backlog fire service provision, associated standards, and overall alignment with RFS advice

· advocacy for state guidance on the charging of short-term rental for parity with non-residential competitors.

As a result of the engagement some changes are proposed to the procedures to be adopted and are mostly changes from staff submissions.

Procedure 4.07.2 has had the following changes made to that proposed.

The word ‘concession’ has been reserved for pension concession card holders. Most other references to concessions are now referred to as ‘reductions’.

Procedure name changed from: Water and sewer billing, concessions, and reductions to Water and sewer billing, metering, and reductions. Other changes related to removing the word concession include:

· haemodialysis concession renamed to haemodialysis allowance.

· all other concessions renamed to reduction

· pensioner concession retained.

Haemodialysis allowance reduced to 70 kilolitres as per previous years. This is still significantly more than a typical at-home dialysis patient would require.

A statement of intent has been added for the high usage charge stating that From July 1, 2019, commercial developments are exempt from paying the higher charge for their current use.

Greater clarity on standard reductions has been added particularly to remove likely misunderstanding of the intended leak reduction for residential properties.

Options for availability charges for vacant land

Councillors may resolve either to:

· rebate unconnected charges to offset headworks charges on connection (current practice)

· Not include any unconnected charge rebate in response to any new applications for water management certificates effective immediately. Previous applications which have already been conditioned with specific contributions will be honoured until 30 September 2022 (proposed).

The administration, operating and maintenance costs for our systems continue whether a property is connected to our network or is yet to be developed. For this reason, availability charges are levied in accordance with section 552 of the local government act on vacant unconnected land. These charges represent overheads and the depreciation of the local pipes, pumps and tanks that make water available to the land and which were installed as part of the development the land was subdivided under. This is notionally intended to pay for depreciation of infrastructure and not to buy into headworks infrastructure like dams, treatment facilities, or transfer mains.

For water the availability charge for vacant unconnected land is the same as for connected properties, being $251 in 2021/2022. For sewer the availability charge for vacant unconnected land is half the connected charge being $635 in 2021/2022. Not all utilities discount the availability charge for unconnected properties.

In the past the impost of headworks on land that was previously unserved was offset by the introduction of a rebate for availability (unconnected) charges. Unconnected charges were added up and taken off headworks charges when a property owner decided to connect to sewer, usually due to development. Staff are not aware of any other local water utility in NSW which offers this rebate although no review has been specifically completed.

The graph below shows the last three years of water and sewer headworks rebates and the number of customers receiving a rebate of each value. i.e. 45 customers received no rebate and 20 received a rebate between $1 and $1,001. $0 rebates are where headworks charges have already been paid for by the customer or by a developer on subdivision. Although these customers are paying unconnected charges their headworks has already been paid.

The below table shows 10 randomly chosen unconnected properties. Staff have researched what value in unconnected availability charges have been paid on each property by current and former owners. The table also shows if headworks contributions have already also been paid for each property or not. If headworks contributions have already been paid then no further contributions are required and no refund of already paid unconnected charges would be made.

	Sewer unconnected	Water unconnected	Already paid headworks?
1	$ 8,464	$ 3,794	no
2	$ 9,179	$ 3,493	no
3	$ 8,464	$ 3,794	no
4	$ 9,579	$ 3,794	no
5	No sewer	$ 959	no
6	$ 9,579	$ 3,794	no
7	$ 6,771	$ 2,517	no
8	$ 2,452	$ 959	no
9	$ 8,734	$ 3,201	yes
10	$ 8,245	$ 1,321	yes

Land that benefits from availability of water typically increases in value. It also often also receives increased fire protection. Waste Services have a similar provision in the local government act. Both provisions are intended to represent the scale needed for water, sewer, stormwater, and waste schemes which require whole of community buy-in.

In Bega Valley we have allowed unconnected water and sewer charges to be banked and offset possible later headworks section 64 charges. Section 64 charges are for the large infrastructure like dams, weirs, trunk pipes and transfer storage.

When a developer subdivides land, they are required to pay section 64 charges to ‘buy-in’ or augment the water and sewer schemes. The developer also places pipes and other infrastructure in the ground to service each lot. All customers are then required to pay unconnected charges in addition to the headworks charges already paid by the developer, until they connect.

Options for divorcing water and sewer use entitlement from development consent

Councillors may resolve either to:

· retain a link between development consents and any shift to high usage charges for some or all customers until they next apply for consent (current practice) – not recommended

· apply credit volume entitlement on the ten years of use ending 30 June 2019 with additional consideration of any financial headworks contributions made (proposed) – staff recommendation

· apply credit volumes by some other method e.g. less or more time than proposed.

Background

On 14 December 2016 a mayoral minute requested staff to “…report on a deferral scheme of Section 64 charges and the report considers alternate methods of levying such charges.”

On 7 June 2017 and 13 December 2017, a report and supplementary report (attachments 3 and 4) established no change to subdivision headworks but the introduction of a high usage charge (then called a high consumption charge) to remove upfront payment of headworks contributions from non-residential development. All lots were required to have at least 1 Equivalent Tenement (ET).

Since then, any development application made has also resulted in a headworks credit being applied to non-residential customers and a move to the high usage charge system. This is the case for any development application, even applications seemly unrelated to water.

Feedback from customers has been that this is unfair and comes as a surprise when the change occurs; that the area-based headworks credit method based on the Water Directorate guideline leads to strange credits too high or too low; and Council has incentivised the deferral of any development out of fear of new charges.

In response staff propose that a current annual credit volume is established from the use over a particular 10-year period and that all non-residential customers are assigned a credit volume from 1 July 2022. This sets a level bar for an entitlement to headworks capacity, does not reward any delay in development and removes inaccurate estimates from the floor area method.

The problem with trying to guess is that we are usually wrong

Trying to predict what load a development will incur on water and sewer systems is impossible. Accidental mistakes are common and usually mean a development must pay for much higher than actual use or much lower than actual use. The old system almost always created winners and losers sometimes in Council’s favour and sometimes in the developer’s favour.

The proposed system removes predictions of use and creates a pay on use system. As businesses and developers intensify water and sewer load then they pay as they go – regardless of the reason, be it a development application or otherwise.

Conversely, if businesses develop or expand without using more water then they will not pay more, even with a development application showing a significant expansion of floor area, taps, sinks, or sites.

A perception that previous consents guarantee unlimited water and sewerage capacity

Should the historic granting of a development application, or an activity established without a development consent, also entitle the user to an unspecified amount of water system capacity, provided they do not need to submit a new development application? This is the view of some customers.

Further, if an unspecified and therefore unlimited capacity entitlement is not warranted, then should a credit be applied to some assessed amount based on predicted future water demand for the consented activity?

The view of Council staff is that this should not be the case and that any previous consent is not an unlimited nor limited entitlement to water and sewer infrastructure capacity unless headworks contributions were or are made.

This situation is the mirror of the capacity entitlement arguments that led Council to seek to abandon predictive load contributions in 2016. Back then developers would argue that their load would be minimal, and therefore should attract low section 64 headworks contributions. If credits for consents are considered, then the mirror image occurs. The situation will be that customers argue that their development will impose a large load and therefore their entitlement should be higher because consent was provided.

The situation has already occurred where a developer has argued their development would have ‘no increased load’ 5 years ago and now argue that the very same development will have ‘significantly increased load’ today for the exact same development application. This is due to the high usage charge scheme flipping the incentive towards achieving credits instead of avoiding contributions.

Staff note that the overall frequency of dispute with customers over headworks matters has gone from frequent in 2016 to rare in 2022. Often disputes involved high financial values and would go The Land and Environment Court of New South Wales for resolution. This is because upfront payments have been removed and because the predictive element of assessment has been mostly removed. Current disputes are almost always related to where the assigned credit was based only on floor-area calculations and not on historic use – which the proposed procedure seeks to substantially eliminate.

Staff therefore strongly recommend that a self-governing mechanism is put in place to avoid arguments over historic development consents. Any predictive system will lead to dispute. Therefore, only current use or credits which have already been paid for through headworks contributions, should be included in a customer’s credit volume entitlement.

The charge that council levies per ET is based on overall actual use of our infrastructure and our predictions of need to grow our system capacity in the future. If we calculated every possible maximum use in each consent, then the overall headworks would need to reserve and cater for that potential use. This means that headworks charges would need to be higher for new customers to pay for the capacity of previous consents, since those consents never contributed to headworks.

By drawing a line under the old predictive consent process, we are taking the policy position that businesses will not have to pay for any headworks access for the annual volume of water they were using up to 30 June 2019. Businesses will be given credit for financial headworks contributions they made on a case-by-case basis, with some being on top of and some being part of existing use. The entitlements calculated are likely to need some review in the first few years.

Staff note that historically not all section 64 charges are exclusively for headworks. Some used to be for local infrastructure as well. This typically no longer occurs.

Caravan parks and the Affordable Housing Strategy

Councillors may resolve either to:

· treat caravan parks as a special case

· treat caravan parks the same as all other customers – staff recommendation.

The proposal to formally divorce development consent from headworks affects caravan parks because some parks have not yet been constructed to their full capacity (according to their existing development consent). This circumstance extends beyond caravan parks and this discussion is a subset of the discussion on divorcing section 64 from development consents, above.

These developments can currently grow to their maximum capacity with immunity to section 64 charges. This may be by virtue of being established before the introduction of section 64 contribution charges or by having paid in accordance with their development consent. In some cases, their actual usage over the past ten years will not reflect their fully developed potential usage.

Therefore, because of this policy change, developments that are not yet constructed to their full capacity will attract high usage charges for any increased water or sewerage use. They would not attract charges if this high usage charge was not introduced or only applied after a new consent application.

Water and sewer staff do not believe caravan parks are any different to any other non-residential business. Any business with an area which has been consented to for a particular activity, be it a restaurant or a caravan park, has no clear theoretical maximum potential water use. This figure is usually related to the specific intensity of the economic activity and business growth. The purpose of the proposed change is to give all customers credit for the capacity they have been using or have paid for, remove upfront payments, and create fair access to more water capacity for those who need it. This is on the premise that a user-pays system is a fair system without winners or losers. Implying that consent to undertake business activity guarantees water capacity for any version of that activity no matter how intense it becomes is not fair for all other customers.

Affordable Housing Strategy

Since this procedure was developed and proposed to Council’s Leadership Executive Group in late 2021 Council’s Affordable Housing Strategy was written. The Affordable Housing Strategy encourages the development of additional long-term sites within existing facilities, as well as the development of additional privately operated and lower cost manufactured housing estates. The high usage charge may appear to increase costs at odds with the Affordable Housing Strategy.

For example, if a caravan park has approval (development consent) for long-term sites, development of a moveable dwelling (which includes a tent, caravan, van, or manufactured home) on a long-term site does not require further development consent. This would therefore not trigger upfront section 64 charges in the old system, nor trigger transition to high usage charges in the current system. In the proposed system all non-residential customers (including caravan parks) are exposed to a high usage charge for any additional load regardless of any application for consent.

The Affordable Housing Strategy encourages greater annual use of water at caravan parks without the need for a development application. If successful, the water use from the original consent is higher than it would have been prior to the Affordable Housing Strategy. This is another example of the impracticality of trying to predict maximum possible load from any consent - things change over time.

The effect of retaining caravan parks with free access to headworks capacity would cost all other customers more, including other accommodation developments, and incentivise caravan parks to never lodge for a new consent. This may work against the intent of the Affordable Housing Strategy when current long-term site consents are filled, and further consents are required.

Conclusion on the proposed high usage charge transition

Seeking a user-pays model for all customers will lower the price paid for headworks for all developers by spreading costs across all users proportionately to their use.

In the next 18 months Council will re-write the Water and Sewer Development Servicing Plan which sets the price of one Equivalent Tenement of water and sewer capacity in our headworks infrastructure. This price is calculated based on the infrastructure we own and operate and the capacity in the system. It is a cost-reflective figure not a profit driven figure. Any subsidy for any developer who increases load on our headworks must be recovered from other customers instead. The more water-users who are covering the costs the less each water-user will pay – whatever the use type.

Community and Stakeholder Engagement

Significant internal and external engagement and co-authoring has led to the development of the proposed policy and procedures.

Engagement undertaken

Extensive engagement was undertaken during the drafting of the updated policy and procedures. This was detailed in the previous Council report from 16 March 2022 (attachment 2). Since that meeting the engagement undertaken has included the public exhibition of the documents for 28 days and a submission period of 42 days.

As part of the Water & Sewerage Strategy 2022-2025 development staff also contacted most of the local business chambers to open and encourage dialogue on their issues. Staff met with two business chambers in person being Eden and Bermagui. In those meetings staff specifically outlined changes to procedures that may have an impact on them and explained what they were and invited them to consider making a submission following a review.

Engagement planned

Inform: We will notify affected non-residential business of the changes with a letter or email as well as flyers for business chamber use.

Involve: Business will be asked to provide input into a review of our non-residential billing framework to seek opportunities for improvement. Developers will also be asked for feedback on our whole business, including content dealt with in these procedures, to inform the review of the Development Servicing Plan.

The Policy 4.07 Water and Sewerage Services and associated procedures once adopted will be published on Council’s website.

Longer-term activities because of the feedback from this exhibition and the Water and Sewer Strategy will have their own engagement plans.

Financial and Resource Considerations

Some costs were considered in financial scenarios Council voted on at the 3 November 2021 meeting and both service changes were adopted and enacted by these procedures.

Staff recommend Council resolves to backdate some changes to the high usage charge to last financial year. This was due to a few inappropriate credit volumes being applied to some customers due to the floor area method. The financial implication is small and is income we did not expect to receive in our financial models. This will address Inequity in the previous system and recognise that Customers who engaged early on the high usage charge changes accepted a holistic review of procedures which took a long time partly due to significant stakeholder involvement and broad review.

Legal /Policy

There are changes in the policy and procedures to definitions for points of ownership that will give greater legal clarity.

The changes to pressure management will improve compliance against the Water Supply Code which reflects the Plumbing Code. This change will help mitigate risk should there be a future change in the codes to mandate pressure control.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Environment and Climate Change

The sewer ownership point of connection will improve the condition of the sewer network and result in fewer sewage spills to the environment.

Economic

The high usage charge will provide better clarity and fairer credit structure for businesses.

Risk

The perception of the high usage charge may lead to some reputational risks despite the result being a user-pays model removing barriers to development, red-tape, and avoiding skewing development.

We risk liability for failed pressure reducing valves which may be considered a cause of leaks and damaged appliances. Conversely if the utility does not own this risk, then no one does, and an overall worse result eventuates through failure to maintain the pressure management devices.

Social / Cultural

The reduction procedure provides clearer and more lenient conditions to receive a reduction in liability for leaks. The procedures are also overall clearer and allow greater development opportunity through clarity of requirements and more flexible approvals.

Attachments

1 ⇩. Water & Sewer policy and procedures feedback May 2022

2 ⇩. Council report 16 March 2022 W&SS Policies and Procedures

3 ⇩. Council report 07 June 2017 Section 64 Contributions

4 ⇩. Council report 13 December 2017 Section 64 Contributions supplementary

5 ⇩. DRAFT for Council 2022.06.29 policy 4.07 water and sewerage services v 6 FOR ADOPTION

6 ⇩. DRAFT for Council 2022.06.29 procedure 4.07.1 Connecting to our water or sewer system v 1 FOR ADOPTION

7 ⇩. DRAFT for Council 2022.06.29 procedure 4.07.2 Water and sewer billing, metering, and reductions v 1 FOR ADOPTION

8 ⇩. DRAFT for Council 2022.06.29 procedure 4.07.4 Water, sewer, and stormwater asset ownership v 1 FOR ADOPTION

Council 29 June 2022

Item 9.3

9.3. RFT 2122-060 DRFA Bemboka Area Culvert Restoration Works

This report details the outcome of the evaluation of Tender RFT 2122-060 Construction Works Contract for DRFA Bemboka Area Culvert Restoration Works and the recommendations for Council consideration.

Director Assets and Operations

Officer’s Recommendation

1. That Council accepts the recommendations outlined in the confidential attachment.

2. That Council accept the tender from (insert) in relation to contract for the works described in tender 2122-060, in the amount of $ (insert) (excluding GST), subject to variations and provisional sums.

3. That authority is delegated to the Chief Executive Officer to execute all necessary documentation in relation to RFT 2122-060 DRFA Bemboka Area Culvert Restoration Works

4. That all tenderers be advised of Council’s decision.

Executive Summary

This project is a restoration project funded under the Disaster Recovery Funding Arrangements (DRFA). This project involves the restoration of two timber crossing structures in the Bemboka region originally destroyed in the 2020 summer bushfires, one at Werrinook Road and the other at Yankees Gap Fire trail. As a result of recent declared flood events temporary remediation works have been undertaken at Yankees Gap Fire trail to make safe and maintain access to residents, while awaiting permanent restoration works to take place.

The project objective is to restore both crossings as compliant modern equivalent concrete structures and reinstate the assets back to pre-disaster function. The works have been prioritised high in the infrastructure recovery program due to the risk of further damage to the assets if subsequent flood events occur. This report presents the outcome of RFT 2122-060 DRFA Bemboka Area Culvert Restoration Works evaluation to complete the construction works for the project.

Background

On 30 March 2022, RFT 2122-060 was issued via Vendor Panel seeking a principal contractor to complete construction works. At the close of the tender period on 11 May 2022 at 12pm, four submissions were received.

Tenders were assessed in accordance with Council procedures. And assessed on a 50% price to 50% non-price weighting. The non-price score was based on; proposed construction arrangements, experience completing similar projects, support of local business, support for indigenous business development/participation, project management plans and proposed construction program.

The tender evaluation process and outcome is detailed in the Confidential Attachment. Note: Information provided by tenderers within their tender submission, in particular price information, is ‘commercial in confidence’. Accordingly, this information and the details of the tender evaluation are provided in a confidential attachment.

Community and Stakeholder Engagement

The remote location of these sites makes National Parks & Wildlife Services and Forestry Corporation of NSW stakeholders in this project. These agencies were involved in consultation with Council during the Aboriginal Heritage investigation process.

Engagement undertaken

Community engagement with local residents has been ongoing throughout subsequent flood events during the make safe works to restore temporary access.

Consultation with Local Aboriginal Land Council and Elders has occurred during the Aboriginal Due Diligence process.

Engagement planned

The community will be notified of the closure of both sites to traffic, with the temporary bypass crossing operational during the construction period at Yankees Gap Fire trail. Notification of works commencing via appropriate BVSC media communication channels will be issued. Focus of project management will be during construction, ensuring minimal impact to the community. Proactive review and consultation with all relevant stakeholders will be carried out in addition to review processes implemented during the works.

Financial and Resource Considerations

Disaster Recovery Funding Arrangements provides Council with an approved total estimated restoration costs (TERC) budget to carry out the delivery of works. Cost control measures are in place during the procurement and delivery process to ensure the project is completed within the approved TERC.

All work locations within this project scope relate to Crown assets and hence life cycle costs do not apply to Council.

Item	$ Excl GST
Expenditure Detail
Detailed design	$6,800.00
Review of environmental management & DPI Fisheries	$2,916.00
Construction works including temporary make safe (completed)	$59,105.00
Project Management (make safe works)	$2,600.00
Aboriginal heritage due diligence & consultation	$5,094.00
Total Expenditure - Committed to Date	$76,515.00

Source of Funds
Disaster Recovery Funding Arrangements	$599,412.00

Total income available	$599,412.00
Total Available Construction Funding	$522,897.00

Legal /Policy

The tender process for RFT 2122-060 was compliant with the Local Government Act 1993 and in accordance with Bega Valley Shire Council Policy 6.08 Procurement of Assets and Services.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Outcome 4: Liveable places
Goal 8: Our places retain their character and scale, development is well planned, and a range of goods and services are available within our shire that meet local needs.
Strategy 18: Provide infrastructure and services to meet the ranging needs of residents in our towns, villages and rural areas.

Environment and Climate Change

A Review of Environmental Factors (REF) has been prepared for the project in accordance with the provisions of Part 5 of the Environmental Planning and Assessment Act 1979 (EP&A Act 1979).

The REF assessed the potential construction and operational impacts associated with the proposed works. The key environmental risks were identified as soil and water, aboriginal heritage, biodiversity, community amenity, traffic and access. A range of safeguards were developed for the potential impacts identified and relevant requirements are described in the contract documentation.

The contractor will be required to carry out all works in accordance with the REF and work in coordination with Council’s representative. The contractor is also required to produce an Environmental Management Plan which will be monitored by Council.

In addition, an Aboriginal Due Diligence Assessment was undertaken for the Yankees Gap Fire trail site. The contractor must ensure all recommendations proposed in the Yankees Gap Fire trail Aboriginal Due Diligence Assessment are adhered to. This includes engaging an RAP (Recognised Aboriginal Person) representative on site to oversee works involving ground penetration.

The contractor must also ensure all work is conducted in accordance with PN21/372 Werrinook Road & PN21/59 Yankees Gap Fire trail DPI Fisheries Permits.

Economic

The DRFA is a joint funding initiative of the Australian and state governments to provide disaster relief and recovery payments and infrastructure restoration to help communities recover from the effects of natural disasters.

Risk

The RFT evaluation included an assessment against quality and price criteria to allow Council to achieve a value for money outcome balanced on quality, price and risk.

A contingency amount is included in project cost to address design omissions or latent conditions during construction phase. Consistent with the conditions of contract, all variations will be approved by Council prior to implementation.

A risk assessment will be maintained throughout the duration of the construction works and staff will monitor all risks associated with safety, environment, budget, program and public relations.

Social / Cultural

By carrying out these restoration works the project will provide improved accessibility and restored permanent safe access, for residents in the surrounding area particularly through wet weather conditions.

Council representatives will work with the Contractor to ensure all recommendations proposed in the Yankees Gap Fire trail Aboriginal Due Diligence Assessment are adhered to. This includes engaging an RAP (Recognised Aboriginal Person) representative on site to oversee works involving ground excavation.

Attachments

1 . 2022.06.29 Confidential Memo RFT 2122-060 DRFA Bemboka Area Culverts (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 as per Section 10A(2)(d) of the Local Government Act 1993.

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009) as it would potentially disclose private business information provided by tenderers in a confidential tender process and would also impact Council’s position in relation to its consideration, therefore impacting the tender process. This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details of individual tenderers.

2 . 2022.06.29 RFT 2122-060 DRFA Bemboka Area Culvert Restoration Works 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 as per Section 10A(2)(d) of the Local Government Act 1993.

Council 29 June 2022

Item 9.4

9.4. Twyford Hall loan repayment

Twyford Hall Incorporated has formally requested Council approval to modify the terms of the Deed of Agreement in place to delay repayment of the $370,000 Council contributed to the Twyford Hall upgrade project for a further twelve months, until 1 July 2023.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note the report and attachments.

2. That Council advise Twyford Hall Incorporated it is willing to grant a twelve month extension to commencement of the loan repayment on the condition that the NSW Government confirm in writing it will fund the remainder of works and Council will not be further financially disadvantaged.

3. That the Chief Executive Officer and Mayor be delegated authority to finalise and execute the amendment to the Deed of Agreement.

Executive Summary

In accordance with the Deed of Agreement between Bega Valley Shire Council (BVSC) and Twyford Hall Incorporated (THI) dated 27 November 2017, all management responsibilities for the complex have been delegated to THI. THI is a non-profit incorporated association that manages the operation, development and maintenance of the complex on behalf of Council for the benefit of the community.

In 2018, the NSW State Government announced a grant of $7.4 million from the Regional Communities Development Fund towards the cost of building the Twyford Hall Theatre. THI has encountered significant complications in the delivery of the project that has placed them in a compromised financial position which resulted in Council entering into a Deed of Agreement to provide THI with financial support to the value of $370,000 towards the project.

THI has now formally requested Council consideration to modify the terms of the Deed of Agreement in place to delay repayment of the $370,000 for a further twelve months, until 1 July 2023.

Background

Council resolved at its Ordinary Meeting of 20 October 2021, when considering whether to provide financial support to THI, as follows:

1. That Council conditionally provide funding to support the Twyford Hall upgrade project to the value of $370,000 to be repaid by Twyford Hall Incorporated

2. That Council delegate the Mayor and Chief Executive Officer to enter into a deed with Twyford Hall Incorporated that outlines the conditions surrounding Councils financial contribution towards the Twyford Hall upgrade project with the cost of the deed preparation to be funded by Twyford Hall Incorporated

3. That a condition of the deed be that Twyford Hall Incorporated are to assign all lease income associated with the site to Council until such time as the $370,000 is repaid to Council

4. That a condition of the deed be that upon Twyford Hall Incorporated receiving the final 5% grant payment from the NSW Government the balance of the $370,000 outstanding be provided to Council

5. That Council provide advocacy support to Twyford Hall Incorporated to secure the additional funds needed to finalise the Twyford Hall upgrade project

6. That Twyford Hall Incorporated provide a business case to look at alternatives for funding the remainder of the funds required for the outstanding works

Following the resolution, Council entered into the attached Deed of Agreement with THI on 18 November 2021. Pursuant to the Deed as THI has not repaid the funds in accordance with clause 2.3 of the Deed, on and from 1 July 2022, THI must assign all lease income to BVSC until the balance of the funds are repaid.

As outlined in the attached report from Council’s Ordinary Meeting of 20 October 2021, following receipt of an NSW State Government grant of $7.4 million from the Regional Communities Development Fund towards the cost of building the Theatre in 2018, THI has encountered significant complications in the delivery of the project that has placed them in a compromised financial position.

THI has formally requested an amendment to clause 2.4 of the executed Deed of Agreement to delay the repayment start date of the funds to BVSC to 1 July 2023. THI has advised they are currently negotiating with the Department of Regional NSW and NSW Public Works Advisory to facilitate completion of the development and release of the final grant payment.

Options

The options available Council are as follows:

1. Resolve that Council modify the terms of the Deed of Agreement to delay repayment of the $370,000 for a further twelve months, until 1 July 2023 with or without interest; or

2. Advise THI Council does not agree to modify the terms of the Deed of Agreement. Noting this option could result in THI becoming insolvent and forced to enter administration and possibly be wound up.

Community and Stakeholder Engagement

Engagement undertaken

Council officers have been consulting with THI regarding the terms of the Deed and delivery of the project. There has been no broader public engagement on Council’s part as the project has been managed by THI.

Council will continue to liaise with THI on the project irrespective of the resolution of Council. Based on the recommendation of this report Council would also engage with potential funding bodies in support of THI.

Engagement planned

Council officers will continue to consult with THI and legal representatives to action the resolution of Council.

Financial and Resource Considerations

THI has advised if BVSC cannot afford them the delayed start date for repayment of the funds they will likely be insolvent and forced to enter administration and be wound up. As Council is the registered proprietor of the Twyford Hall Complex in Merimbula this would result in Council becoming responsible for the completion of the project and ongoing management of the facility which would have significant financial and resource impacts on Council.

Legal /Policy

As outlined in the attached report from Council’s Ordinary Meeting of 20 October 2021, section 356 of the Local Government Act 1993 (LG Act) regulates Council’s ability to provide financial assistance. In accordance with section 356 of the LG Act a resolution of the Council is required to contribute money or otherwise grant financial assistance, consequently the need for a further resolution of Council to be passed to modify the terms of the Deed of Agreement providing financial support to THI.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Goal 1 of the Community Strategic Plan states: We are co-operative, caring and enjoy a culturally rich community life.

Goal 12 of the Community Strategic Plan states: Our Council is financially sustainable and services and facilities meet community need.

Environment and Climate Change

There are no environment and climate change matters associated with the report.

Economic

The economic impacts associated with this report have been addressed under the finance section of this report.

Risk

In determining its direction, Council should consider several risks associated with this matter including, but not limited to:

• Reputational risk in relation to the community's view on how Council is handling the proposal from THI as this request is outside of the documented Delivery Program and long-term resourcing strategies of Council.

• Financial risk in relation to the proposal from THI as the request is redirecting investment away from the agreed priorities, plans and assets that have been developed through significant community consultation.

Social / Cultural

The project being undertaken by THI will improve the facilities which have a positive outcome for the community.

Attachments

1 ⇩. Council report dated 20 October 2021 - Twyford Hall, Merimbula

2 ⇩. Formal request from Twyford Hall Incorporated

3 . CONFIDENTIAL ATTACHMENT Twyford Hall Incorporated executed Deed of Agreement (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 as per Section 10A(2)(d) of the Local Government Act 1993.

Council 29 June 2022

Item 10.1

10.1. Adoption of the Integrated Planning and Reporting documents

The Bega Valley Shire Council Community Strategic Plan 2042 including performance measures, Delivery Program 2022-25, Operational Plan 2022-23 and the Resourcing Strategy 2022-25 have been publicly exhibited in accordance with the legislative requirements of the Local Government Act 1993. The suite of documents is presented and recommended for adoption. Council’s Community Project Proposals are also outlined for adoption.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the submissions and Council Officer responses included at Attachment 1.

2. That Council adopt the Bega Valley Shire Council Community Strategic Plan 2042 and accompanying performance measures, the Delivery Program 2022-25 and Operational Plan 2022-23 including the budget included as attachments to this report.

3. That Council adopt the Resourcing Strategy 2022-25, including the Long Term Financial Plan with the recommended ‘Scenario 2- Maintain’ model noting that an updated Long Term Financial Plan will be prepared in the new financial year for consideration.

4. That Council officers advise those that made submissions during public exhibition of Council’s decision.

5. That the Community Project Proposals be determined as follows:

(5.1) That the proposal for naming of the Barclay Street pavilion 'Mick Kirkby Memorial Pavilion' be deferred until a place naming procedure is developed and implemented.

(5.2) That the proposal for a half-court basketball at Joe Caddy Park Taylor's Reserve Tathra be given in principle support to enable the applicant to undertake further project development including required approvals and submit external funding applications.

(5.3) That the proposal for Pambula River walk extension from Panboola wetlands to join walking track to Pambula River mouth be given in principle support to enable the applicant to undertake further required project development including required approvals, attain support from other key stakeholders (NPWS) and submit external funding applications.

(5.4) That the proposal for Spooner Park Micro Forest rehabilitation at Bermagui is not supported by Council, as it is unplanned asset development without identified external contributions to the project.

(5.5) That the proposal for addition of two showers at Rocky Hall Community Hall is not supported by Council as it is not a core operational function of the hall and renewal of existing assets are prioritised.

(5.6) That the proposal for the community BBQ facility at Rocky Hall Community Hall is not supported as it is a new asset with comparatively high asset investment for low demand. The applicant is encouraged to investigate other options that increase use and flexibility of the hall.

(5.7) That the proposal for a multi-generational inclusive recreation area at Tura Beach be given in principle support from Council to enable the applicant to undertake further project development including required approvals and submit external funding applications.

(5.8) That the proposal to install a flagpole at Myrtle Cove Wonboyn be given in principle support to enable the applicant to undertake further project development including required approvals and submit external funding applications.

(5.9) That the proposal for construction of a petanque field at Ford Park Merimbula is not supported by Council as the location conflicts with another project proposed in the area related to the current traffic study.

(5.10) That the proposal for Stafford/McGovern Historic brickwork's site rehabilitation at Curalo Lake walkway be supported by Council to enable the applicant to undertake further project development including required approvals, external funding applications and consultation with Eden Local Aboriginal Land Council on the proposed development.

(5.11) That the proposal for vehicle and pedestrian access at frontage to Old Bega Hospital be given in principle support to enable the applicant to undertake further project development, in line with their existing development assessment conditions of consent and to source external funding.

(5.12) That the proposal for Bega Valley Kennel and Obedience Club home ground at Lions Park Bega be given in principle support, dependent on external funding.

(5.13) That the proposal for female change rooms at George Brown Memorial Oval Eden be given in principle support to enable the applicant to undertake further project development including required approvals and submit external funding applications.

(5.14) That the proposal for Cobargo Skate Park ambulant toilet is not supported by Council as it is an additional unplanned facility that will result in long term high operational and maintenance costs.

(5.15) That the proposal for Curalo Care & Comfort - rubbish bins, seating, dispensers and signage at Lake Curalo Board Walk be given in principle support to enable the applicant to undertake further project development including required approvals and submit external funding applications.

(5.16) That the proposal for steps for improved access to Eden Memorial swimming pool be supported by Council subject to compatibly with other site infrastructure and confirmation of operational staffing requirements to install and remove the steps.

(5.17) That the proposal for interpretive signage at Eden Lake Curalo Boardwalk be given in principle support to enable the applicant to undertake further project development including required approvals, submission of external funding applications and sign type, design and information must be approved by council staff.

(5.18) That the proposal for solar panel installation and battery at Towamba Hall be given in principle support to enable the applicant to undertake further project development including required approvals; and dependent on external funding.

Executive Summary

Council has been provided with all submissions that were made concerning the Bega Valley Shire Council Community Strategic Plan 2042, Delivery Program 2022-25, Operational Plan 2022-23 and Resourcing Strategy 2022-25. Twenty-nine external submissions were received during the exhibition period. Several internal adjustments are also recommended. Copies of all submissions along with a summary of submissions and Council Officer responses are included in Attachment 1.

It is recommended that Council adopt the following documents in accordance with Sections 403, 404 and 405 of the Local Government Act 1993.

Attachment 2- Bega Valley Shire Council Community Plan 2042

Attachment 3- Bega Valley Shire Community Strategic Plan 2042 – Measures

Attachment 4- Delivery Program 2022-25 and Operational Plan 2022-23

Attachment 5- Resourcing Strategy 2022-25

The 2023 financial year budget forecasts an operating deficit before capital grants and contributions. Prepayment of the financial assistance grant from the Australian government has an impact on the projected result. The long term financial plan provides a strategic approach to support asset management and provision of community services in a financially sustainable way and with the principle of intergenerational equity.

In 2021 Council resolved that Community Project Proposals (CPP) for major projects are to be considered and included during the development and consultation of the annual Operational Plan. This enables Council to consider the resource requirements of proposed major projects in conjunction with other planned and programmed works. Recommendations to either support, or not support each community project proposal received are included in this report. A detailed assessment summary sheet is included at attachment 6.

Background

In accordance with the Integrated Planning and Reporting (IPR) Framework, Council prepared and placed on public exhibition from 4 May - 1 June 2022 a suite of integrated planning and reporting documents.

External Submissions

Twenty-nine external submissions were received during the exhibition period with the majority related to the modelled increase in rates outlined in the Draft Long Term Financial Plan (LTFP). The full submissions and council officer responses are included in attachment 1. It is recommended that two amendments are made to the draft Delivery Program to better align with state government strategies.

Internal Adjustments

There have been a range of immaterial, alignment and design changes made to the documents. The internal changes of significance relate to:

- budget reductions connected to overstatement of budget allocation for Councillor superannuation ($25,750) and the decision by Council at the 15 June 2022 to not take up the allowable increase in Councillor fees ($5,000).

- budget increase ($245,706) as a result of the Emergency Services Levy amount being determined in May. This is an increase in fees by 35% ($274,128) from the 2021-22 amount.

Community Project Proposals

Council is ultimately responsible for all works and assets located on Council managed land. BVSC responsibilities include compliance, maintenance, safety and ongoing asset management and depreciation. Regardless of the project size, all works proposed for BVSC managed land need to be considered in the context of available funding, provision level, risk management, required approvals, maintenance and renewal costs. It is also important to consider how the proposed projects can add value to other planned Council works.

It is understood that some projects initially seem to have merit and high levels of interest from the applicant. Council must do an assessment of resourcing, costs, ongoing asset management and levels of use before they are recommended by Council officers to be prioritised by Council.

There are 18 major Community Project Proposals (CPP) reported for Council’s consideration when adopting this year’s Operational Plan. Major CPP’s are projects that are complex, create a new asset, result in changed use or amenity, require resourcing and support from Council, contain barriers for delivery such as specific approvals (REF, AHIPS, permits, native title etc) or that will result in notable additional ongoing operations and maintenance costs. Some recent examples of major projects that have developed from community project proposals include Merimbula basketball/netball courts upgrade, Merimbula Lake Street Walk, Tathra Headland Walk, Evans Park (Kalaru) amenity block and playground and Cobargo BMX pump track.

CPPs received are reviewed and assessed by Council officers including comments and recommendations. The assessment provides a rating against the following project items:

• Asset Renewal. Is it renewing an existing asset or an upgrade? Is the work linking to a required renewal from asset register?

• Provision/Use/Value. Is the project relevant to current community needs? Will the facilities be well used? Will the community be getting good value? Is the opportunity cost to other projects and groups fair and acceptable?

• Links to other plans and works. Are the works linked to adopted Strategic Plans, Facility Management Plans or asset renewals or planned maintenance programs?

• Project Scale. How large is the project?

• Project Approval Complexity. Will the project require Environmental and Heritage approvals? Cultural Heritage approvals? Crown Land approvals? Council Development Application approval?

• Requested BVSC Funding. Are funds requested from Council? Are related funds allocated in budgets for asset renewals or maintenance? Is there good value in the funding level requested?

• Likely BVSC Involvement. Is labour, material or administrative assistance required to assist the project? Is direction required in the approvals processes?

• Ongoing Operations. What will be the cost to Council to maintain the asset over its lifecycle?

Eighteen major project CPP’s have been received in the 2021/22 financial year. A Councillor workshop was held on 27 April 2022 to provide Councillors with an overview of the CPP process and the proposals received. The proposals are available on the Councillor portal for Councillor’s information and review. Attachment 6 to this report is a summary sheet of the proposals and staff assessment. Staff recommendations are provided for Council’s decision.

Additional Special Variation

Council had modelled its draft budget for 2022-23 based on the assumption that the one-off ‘Additional Special Variation’ to rates of 1.8% would be approved by the Independent Pricing and Regulatory Tribunal (IPART). Council received notification on 20 June that the additional special variation to rates had been approved. Attachment 7 to this report includes the determination and instrument received from IPART.

Options

Council has a range of options when considering the recommendations included in this report. This includes adopting the documents as attached or amending the documents by resolution.

Council is legislatively required to have its Operational Plan and budget adopted by 30 June each year.

Community and Stakeholder Engagement

The Bega Valley Shire Council Community Strategic Plan 2042, Delivery Program 2022-25, Operational Plan 2022-23 and Resourcing Strategy 2022-25 were placed on public exhibition from Wednesday 4 May to Wednesday 1 June 2022.

Engagement undertaken

The primary point of access to view the documents was through Council’s website. Hard copies of the documents were also made available at all of Council’s libraries.

A number of social media posts on Council’s Facebook page were shared to encourage the community to provide feedback. Information was also included in Council News produced during the exhibition period.

A media briefing was held once the IPR documents were placed on public exhibition. This resulted in media coverage discussing Council’s financial position along with encouraging the community to be engaged in the feedback process.

Direct correspondence from the CEO’s office was also shared via the Community Engagement team to Council’s volunteer network and members of the community directory. There were over 200 recipients which represent all Community Organisations registered with BVSC on our Community Directory.

Engagement planned

The Bega Valley Shire Council Community Strategic Plan 2042 and accompanying performance measures along with the Delivery Program 2022-25 and Operational Plan 2022-23 and the Resourcing Strategy 2022-25 once adopted, will be published on Council’s website.

Financial and Resource Considerations

The draft Operational Plan includes a 2022-23 budget summary which provides an overview of the total estimated income and expenditure for each of Council’s General, Waste, Water, and Sewer Funds as well as a breakdown of expenditure by Council service areas.

The focus in developing the LTFP and annual budgets is to ensure long term financial sustainability while ensuring the continued delivery of a broad range of services and capital works informed by Council’s underlying strategies.

A key financial objective when preparing the budget for next financial year was to achieve a balanced net operating result for all of Council (consolidated fund). Due largely to a timing issue in receiving the Financial Assistance Grant from the Federal Government the consolidated position recommended for adoption will be in deficit.

The General Fund forecasts an operating deficit before capital grants and contributions. This will be partly balanced by positive operating results before capital contributions in the Sewer, Water and Waste Funds. Further work needs to be undertaken to reduce Council’s operating deficits, particularly in the general fund.

The use of cash and level of unrestricted cash reserves are closely managed to ensure Council remains in a strong position to meet its obligations when they fall due.

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 regarding the documents prior to adoption.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The documents once exhibited and adopted guide the Council’s operations under the Integrated Planning and Reporting Framework.

Environment and Climate Change

Several of the Operational Plan projects listed support the implementation of Council’s adopted Climate Resilience Strategy.

Economic

As one of the Bega Valley Shire’s largest employers and consumers of a range of services, Council has a significant role to play in the local economy. It is acknowledged that adjustments in Council’s annual operating budgets has flow on effects to the local economy and this is considered as part of the budget development process.

The budget for next financial year continues to see investment in resources that support our local economy as an employer, service provider and as a buyer of local works and services.

Risk

Council is required to plan for its future and manage its financial stability. Financial stability is defined in terms of Council's ability to facilitate and enhance economic processes, manage risks, and absorb shocks. Moreover, financial stability is considered a continuum: changeable over time and consistent with multiple combinations of the constituent elements of finance. The annual IPR and budget development process helps to provide transparency and accountability into the financial management and forward planning of Council.

Social / Cultural

The Operational Plan will have future social and cultural implications. The Operational Plan and budget for next financial year will impact Council officers and the community as we seek to improve our financial sustainability in the long-term. Adopted budgets are monitored throughout the year and any adjustments identified are requested through the Quarterly Budget Review process.

Attachments

1 ⇩. IPR Submissions Summary June 2022

2 ⇩. Bega Valley Shire Community Strategic Plan 2042 - For Adoption

3 ⇩. Bega Valley Shire Community Strategic Plan 2042 - Measures For Adoption

4 ⇩. Delivery Program 2022-25 and Operational Plan 2022-23 - For Adoption

5 ⇩. Resourcing Strategy 2022-25 - For Adoption

6 ⇩. Community Project Proposal Summary Sheet June 2022

7 ⇩. BVSC Additional Special Variation Determination and Instrument

Council	29 June 2022
*Item 10.1 - Attachment 4*	Delivery Program 2022-25 and Operational Plan 2022-23 - For Adoption

PDF Creator

Council	29 June 2022
*Item 10.1 - Attachment 5*	Resourcing Strategy 2022-25 - For Adoption

PDF Creator

Council 29 June 2022

Item 10.2

10.2. Making of rates and charges for 2022-23

The Draft Bega Valley Shire Delivery Program 2022-25 and Operational Plan 2022-23 including the Revenue Policy outlining the annual rates and charges for the 2022-23 financial year have been publicly exhibited in accordance with the legislative requirements of the Local Government Act 1993 and are now presented and recommended for adoption.

Director Business & Governance

Officer’s Recommendation

1. That the Revenue Policy (Attachment 1) be adopted as part of the Operational Plan 2022-23.

2. That the following rates and charges be applied in accordance with Sections 534 and 535 of the Local Government Act 1993,

3. General Rates:

• to make a Base rate of $536.00 on each rateable parcel of land and an ad-valorem rate of 0.003252 cents in the dollar on the rateable land value for all properties categorised as “residential” in accordance with Section 516 of the Local Government Act 1993 (the LG Act) and;

• to make a Base rate of $536.00 on each rateable parcel of land and an ad-valorem rate of 0.003252 cents in the dollar on the rateable land value for all properties categorised as “farmland” in accordance with Section 515 of the LG Act and;

• to make a Base rate of $536.00 on each rateable parcel of land and an ad-valorem rate of 0.006829 cents in the dollar on the rateable land value for all properties categorised as “business” in accordance with Section 518 of the LG Act and;

• to make a Base rate of $536.00 on each rateable parcel of land and an ad-valorem rate of 0.006829 cents in the dollar on the rateable land value for all properties categorised as “mining” in accordance with Section 517 of the LG Act and;

4. Stormwater Charge:

• to make a stormwater charge of $25.00 per annum per single residential dwelling that benefits from Council’s stormwater system whether built or natural in accordance with Section 496A of the LG Act and;

• to make a make a stormwater charge of $12.50 per annum per residential strata dwelling that benefits from Council’s stormwater system whether built or natural in accordance with Section 496A of the LG Act and;

• to make a stormwater charge of $25.00 per annum per developed commercial property up to 1,200 square metres that benefits from Council’s stormwater system whether built or natural in accordance with Section 496A of the LG Act and;

• to make a stormwater charge of $100.00 per annum per developed commercial property in excess of 1,200 square metres but not exceeding 3,000 square metres that benefits from Council’s stormwater system whether built or natural in accordance with Section 496A of the LG Act and;

• to make a stormwater charge of $200.00 per annum per developed commercial property in excess of 3,000 square metres that benefits from Council’s stormwater system whether built or natural in accordance with Section 496A of the LG Act and;

• to make a minimum stormwater charge of $5.00 per annum per developed commercial strata property that benefits from Council’s stormwater system whether built or natural in accordance with Section 496A of the LG Act.

5. Waste and Recycling Collection Charge:

• in accordance with Section 496 and 501 of the Local Government Act 1993, that Council make waste management charges for 2021-2022:

Function	Charge	Description			Value $	Information
Waste Management	s. 501	Residential Waste Management			297	Mandatory charge per residential-rated (non-rural) assessment (excl vacant land).
	s.501	Rural Waste Management			140	Mandatory charge per rural-rated assessment (excl vacant land).
	s. 501	Commercial Waste Management			319	Mandatory charge per commercial-rated assessment (excl vacant land).
	s.501	Waste Service Availability Charge			99	Mandatory charge per assessment for land where waste collection service is available but no service is provided.
	s.501	Waste Contamination charge			225	Charge applied in accordance with contamination procedure.
Landfill	Weekly
	s. 496	Residential Landfill 80L			139	Subject to assessment of need.
	s. 496	Residential Landfill 140L			185	Subject to assessment of need.
	s. 496	Residential Landfill 240L			250	Subject to assessment of need.
	s. 496	Rural Landfill 80L			193	Mandatory minimum for rural.
	s. 496	Rural Landfill 140L			249	Standard service offering.
	s. 496	Rural Landfill 140L (Bin Bank)			249	Mandatory minimum for bin bank customers.
	s. 496	Rural Landfill 240L			316
	s. 501	Commercial Landfill 80L			139	Mandatory minimum for commercial.
	s. 501	Commercial Landfill 140L			185
	s. 501	Commercial Landfill 240L			250	Standard service offering.
	s. 501	Commercial Landfill 660L			664
	Fortnightly
	s. 496	Residential Landfill 80L			73	Mandatory minimum for residential.
	s. 496	Residential Landfill 140L			101	Standard service offering.
	s. 496	Residential Landfill 240L			134
Recycling	Weekly
	s. 501	Commercial Recycling 80L			53	Mandatory minimum for commercial.
	s. 501	Commercial Recycling 140L			80
	s. 501	Commercial Recycling 240L			115	Standard service offering.
	s. 501	Commercial Recycling 360L			145
	s. 501	Commercial Recycling 660L			664
	Fortnightly
	s. 496	Residential Recycling 80L			50	Mandatory minimum for residential.
	s. 496	Residential Recycling 140L			54
	s. 496	Residential Recycling 240L			57	Standard service offering.
	s. 496	Residential Recycling 360L			79
	s. 496	Rural Recycling 80L			92	Mandatory minimum for rural.
	s. 496	Rural Recycling 140L			104
	s. 496	Rural Recycling 240L			112	Standard service offering.
	s. 496	Rural Recycling 240L (Bin Bank)			112	Mandatory minimum for bin bank customers.
	s. 496	Rural Recycling 360L			134
Food and Garden Organics	Weekly
	s. 496		Residential FOGO 80L	97		Mandatory minimum for residential.
	s. 496		Residential FOGO 140L	100
	s. 496		Residential FOGO 240L	105		Standard service offering.
	s. 496		Rural FOGO 80L	115		Optional. Only supplied where truck already passes collection point.
	s. 496		Rural FOGO 140L	120		Optional. Only supplied where truck already passes collection point.
	s. 496		Rural FOGO 240L	124		Optional. Only supplied where truck already passes collection point.
	s. 501		Commercial FOGO 80L	97
	s. 501		Commercial FOGO 140L	100
	s. 501		Commercial FOGO 240L	105		Standard service offering.
	s. 501		Commercial FOGO 140L second weekly service	100		Optional. Only supplied where truck already passes collection point.
	s. 501		Commercial FOGO 240L second weekly service	105		Optional. Only supplied where truck already passes collection point.

6. Water supply services charges:

· to make a water access base charge for all properties with a 20mm water connection of $260 and a water usage charge of $3.28 per kilolitre in accordance with Sections 501 and 502 of the LG Act

· to make a water access base charge for all Strata properties with a 20mm water connection of $260 in accordance with Sections 501 and 502 of the LG Act

· to make a water access charge for all properties with larger water connections based on increments of the base charge as per Council’s adopted operational plan

· to make a water access charge of $260 for all properties that are unconnected to a water supply system and able to connect

· to make an allocation of water free of charge as per Council’s water and sewer billing, metering, and reductions procedure for all registered patients using home dialysis machines or other certified medical treatments, subject to a medical certificate from the Southern NSW Local Health District

· To make properties with an approved dedicated fire service have no water access charges applied. If metered water usage occurs outside of emergency use, this exemption will be forfeited.

7. Sewerage Services Charges

For all residential properties categorised as residential or farmland in accordance with Sections 515 and 516 of the LG Act, including each residential strata lot and each residential dwelling on a multi-dwelling lot:

· to make a uniform residential sewerage charge of $1,318 for all properties connected to a sewerage system

· to make a uniform residential sewerage charge of $659 for all properties that are unconnected to a sewerage system and able to connect.

For all non-residential properties categorised as business or mining in accordance with Sections 517 and 518, including strata and non-strata developments:

· to make a uniform non-residential sewerage access base charge of $1,318 for all properties with a 20mm water connection that are connected to a sewerage system

· to make a uniform non-residential sewerage access base charge of $659 for all properties that are unconnected to a sewerage system and able to connect

· to make a non-residential sewerage assess charge for all properties with larger water connections based on increments of the base charge

· to make non-residential sewerage bills based on multiplying a sewer discharge factor by both the non-residential sewerage access charge and by water usage multiplied by a water usage charge of $4.76 per kilolitre

· to make sewer discharge factors based on guidance material provided by the NSW Government

· to make changes to Sewer Discharge Factors in individual circumstances based on an assessment of water usage and discharge locations.

8. Liquid Trade Waste Charges

· to make Liquid Trade Waste (LTW) charges pursuant to Section 501 of the LG Act

· to make bills for Category 1 dischargers requiring nil or minimum pre-treatment as an annual fee

· to make bills for Category 2 dischargers with prescribed pre-treatment as an annual fee plus the volume of LTW discharged multiplied by $1.96 a kilolitre

· to make bills for Category 2S dischargers that transport and discharge human waste, or discharge from ship-to-shore pump-out facilities or dump-points, as an annual fee plus the volume of LTW discharged multiplied by $17.73 a kilolitre

· to make bills for Category 3 large and industrial dischargers an annual fee plus excess mass charges

· to make estimations of the volume of LTW discharged by multiplying water usage by LTW discharge factors based on guidance material provided by the NSW Government.

9. High Usage Charge:

· to make a process for non-residential developers to reduce their upfront costs related to Section 64 developer contributions through paying high usage charges for water used over Equivalent Tenement (ET) credit volumes established for the development

· to make a process for non-residential developers to reduce their upfront costs related to Section 64 developer contributions through paying high usage charges for sewage discharged over credit volumes thresholds measured in kilolitres established for each customer

· to make 1 ET for water 205 kL/y and 1 ET for sewer 190 kL/y of metered water use, based on the average annual household water usage and average annual household contribution to a sewerage system

· to make the High Usage Charge for water $2.29/kL and $3.45 for sewer

· to make bills for non-residential customers by adding the high usage charge to the base charge and applying the higher charge rates to volumes used/discharged over established credit volumes within the charging formulas for non-residential water and sewer usage.

10. On-site sewer management

• Council will charge a single annual amount for all existing On-Site Sewer Management.

· Low risk (10 year cycle) $39.00

· High risk (3 year cycle) $69.00

· Critical risk (1 year cycle) $156.00

Council no longer charges for existing On-Site Sewer Management inspections.

11. Pension Claim:

In accordance with Section 575 of the LG Act, Council acknowledges it must apply the following Pension concessions to eligible properties, being owned and used as principal places of residence by eligible pension holders.

· General Rates and Domestic Waste Services: $250.00

· Water Supply Fund: $87.50

· Sewerage Supply Fund: $87.50

12. Interest on Overdue Rates and Charges:

Council hereby resolves that in accordance with the provisions of Section 566(3) of the LG Act the interest rate to apply to all outstanding rates and charges for the period 1 July 2022 to 30 June 2023 be calculated at 6% per annum.

Executive Summary

The exhibited Operational Plan 2022-2023 included Council’s annual Revenue Policy for 2022-2023 detailing the proposed rates and charges for the 2023 financial year.

Council has been provided with all written submissions that were made concerning the Operational Plan 2022-2023, including the Revenue Policy.

There were no external submissions regarding the Revenue Policy and one internal staff submission.

Background

In accordance with the Integrated Planning and Reporting (IPR) Framework, Council prepared a draft Delivery Program 2022-25 and Operational Plan 2022-23 including its Revenue Policy. Council resolved on 4 May 2022 for its IPR documents to be placed on public exhibition for 28 days.

Revenue Policy

In conjunction with the adoption of the Operational Plan for the 2022-23 financial year, Council is required to ‘make’ the Rates and Charges proposed in the Revenue Policy. The Revenue Policy contains estimates of income and expenditure, rates, pricing methodology and borrowings for the 2022-23 financial year.

Submissions

There was one internal submission related to the Revenue Policy that highlighted the variance in pricing for on-site sewer management which is captured in both the Fees and Charges and the Revenue Policy.

Staff are recommending the charge be as advertised in the revenue policy and that the fee be removed from Fees and Charges.

Rates

The annual Ordinary Rates are per the rate peg for 2022-23 set at 0.7% plus the Additional Special Variation of 1.8% was determined by IPART on 20 June 2022. The recommendation of this report is to adopt the approved rate peg of 2.5%.

Below is the rating model for 2022-23 that was exhibited in the Revenue Policy. In accordance with Sections 493, 494 and 537 of the Local Government Act 1993, it is recommended Council makes the below ordinary rates for 2022-23:

Interest Charges on Overdue Rates and Charges

The NSW Office of Local Government issued a Circular to Councils No 22-06 on 1 April 2022. The Circular determined, in accordance with section 566 of the Local Government Act 1993, the maximum rate of interest payable on overdue rates and charges for the period 1 July 2022 to 30 June 2023 will be 6.0% per annum.

Transfer of Rates

Commencing 1 July 2021, Council now undertake rating on a pro-rata basis when a registration of a subdivision Deposited Plan (DP) or Strata Plan (SP) is received. By raising pro-rata rates and charges, commencing from the next quarter (1 October, 1 January, 1 April or 1 July) after the DP/SP registration date, we ensure the appropriate rates and charges are applied to each property.

Review of Non Rateables

The Local Government Amendment Bill 2021 assented on 24 May 2021 outlined amendments to be made to Sections 555 to 558 (Chapter 15, Part 6 - What land is rateable) of the Local Government Act 1993 that determine the exemptions that must be and some that may be applied for land rates and water and sewer access charges.

Section 558 of the Local Government Act 1993 outlines the exemptions that may be applied by a Council. Council has recently undertaken a review of non-rateable properties in the Bega Valley Shire to ensure rates and charges exemption provisions are applied correctly under Local Government Act 1993, Section 556 - What land is exempt from all rates, other than water supply special rates and sewerage special rates?

The review also considered Local Government Act 1993 Section 560 - Who is liable to pay rates? and Section 561 – Who is liable to pay charges? Those ratepayers impacted by the review have received correspondence from Council advising them of the changes to their rates that will come into effect on 1 July 2022.

Options

Council has a range of options when considering the recommendations included in this report. Delaying the adoption of the Revenue Policy will have future impacts.

Council is legislatively required to have its Operational Plan, budget and Revenue Policy adopted by 30 June each year.

Community and Stakeholder Engagement

Engagement undertaken

The draft Delivery Program 2022-25, Operational Plan 2022-23 including the Revenue Policy and, draft Fees and Charges 2022- 2023 were placed on public exhibition from Wednesday 4 May 2022 to Wednesday 1 June 2022.

The primary point of access to view the documents was through Council’s website. Hard copies of the documents were made available at all of Council’s libraries. A number of social media posts on Council’s Facebook page were shared to encourage the community to provide feedback. Information was also included in Council News produced during the exhibition period.

A media briefing was held closely after the IPR documents went on public exhibition. This resulted in media coverage discussing Council’s financial position along with encouraging the community to be engaged in the feedback process.

Direct correspondence from the CEO’s office was shared via the Community Engagement team to Council’s volunteer network and members of the community directory.

Copies of the draft plans were available and discussed with the public at the “meet as at the markets” sessions held in towns and villages across the shire during May.

Engagement planned

The Revised Delivery Program 2022-25 and Operational Plan 2022-23 including the Revenue Policy once adopted, will be published on Council’s website.

Financial and Resource Considerations

The rates and charges set out in the Revenue Policy are designed to provide the net source of funds after allowing for loans, contributions and government grants for the programs and initiatives identified in the 2022-23 Operational Plan.

Council’s rates and charges are reviewed on an annual basis prior to finalisation of Council’s annual operating budget. In general, Council follows a cost-recovery philosophy towards the provision of services.

Council’s pricing will:

• explore cost recovery opportunities

• pursue value for money by providing effective and efficient service

• balance rates and grants against other funding sources

• manage financial risk in a volatile climate

• ensure that debt financing is limited to works of a capital nature and that the total debt is limited to ensure long-term financial stability

• be structured so that it can be administered simply and cheaply and be understood by the public

• consider real life-cycle and environmental costs

• consider that the price applied can encourage or discourage consumer use and behaviours.

Legal /Policy

Under the Local Government Act 1993, Council is required to develop and publicly exhibit documents in the IPR framework for a period of 28 days and consider submissions made to the Operational Plan including the revenue policy prior to adoption.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The Revenue Policy, once adopted, details Council’s revenue operations and allows rates and charges to be levied as advertised.

The Revenue Policy is a key element of the annual Operational Plan that is developed under the Integrated Planning and Reporting Framework.

Environment and Climate Change

Council’s charging philosophy outlined in the Revenue Policy considers asset life-cycle and environmental costs. Several of the charges outlined in the Revenue Policy relate to the provision of water, sewer and waste services which are fundamentally connected to the provision of a clean and sustainable community.

Economic

It is acknowledged that adjustments in Council’s annual rates and charges have flow on affects to the local community. This is considered in the process of setting the rates and charges each year.

Council follows a cost-recovery philosophy towards the provision of services. It recognises people’s ability to pay and balances an expectation that some services are cross subsidised from rates for the common good of the community.

Risk

Council is required to plan and manage financial stability into the future. Financial stability is defined in terms of Council's ability to facilitate and enhance economic processes, manage risks, and absorb shocks. Moreover, financial stability is considered a continuum: changeable over time and consistent with multiple combinations of the constituent elements of finance.

The annual IPR and budget development process helps to provide transparency and accountability into the financial management and forward planning of Council in a way that mitigates strategic and operational risks.

Social / Cultural

As Council continues to invest in the Bega Valley Shire community, the Operational Plan including the Revenue Policy has future social and cultural impacts.

As Council seeks to continue being financially sustainable in the long-term, a more detailed review of revenue sources will be required.

Attachments

Nil

Council 29 June 2022

Item 10.3

10.3. Adoption of Fees and Charges 2022-23

The draft 2022-23 Fees and Charges have been publicly exhibited in accordance with requirements of the Local Government Act 1993 and are recommended for adoption.

Director Business & Governance

Officer’s Recommendation

That Council:

1. Makes each fee and charge for 2022-23 in accordance with the exhibited draft fees and charges subject to the changes outlined in attachment 1 to this report

2. Adopt attachment 2 as the fees and charges for 2022-23 commencing 1 July 2022

Executive Summary

In accordance with Section 608 of the Local Government Act 1993, Council is required to adopt the Fees and Changes for 2022-23 that will commence from 1 July 2022. It is estimated that the fees and charges will be approximately 14% of Council’s revenue for 2022-23 with an estimated $21.388 million revenue.

There were no external submissions relating to the exhibited Fees and Charges 2022-23. Several internal amendments to the draft Fees and Charges are proposed. The staff recommendations, including a rationale for each amendment is summarised in Attachment 1.

Attachment 2 is the revised Fees and Charges document for 2022-23 recommended for adoption and incorporates the amendments outlined in Attachment 1.

Background

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 2022-23 year are detailed in the Fees and Charges document and are aligned to Council’s pricing policy outlined on Page 11 of the document.

All Council’s fees and charges are reviewed on an annual basis prior to finalisation of Council’s budget. Fees and charges in general (not including statutory fees or fees set by management committees) will be increased generally by the Consumer Price Index (CPI). Any fees and charges relief previously provided in connection with COVID will be rescinded.

Options

It is recommended that Council adopt the Fees and Charges 2022-23, with the amendments outlined in Attachment 1. Council can choose to further review and amend the draft Fees and Charges prior to adoption noting that any delays after 1 July 2022 would result in Council not meeting its obligations under the Local Government Act.

Community and Stakeholder Engagement

Engagement undertaken

At its meeting on Wednesday 4 May 2022, Council resolved to place the Draft 2022-23 Fees and Charges, along with a suite of other integrated planning documents, on public exhibition for 28 days in accordance with Section 404 and 405 of the Local Government Act 1993. The exhibition took place between Wednesday 4 May 2022 and Wednesday 1 June 2022.

The primary point of access to view the draft Fees and Charges was through Council’s website. A number of social media posts on Council’s Facebook page were shared to encourage the community to provide feedback. Information was also included in Council News produced during the exhibition period.

The fees and charges document was available at all Councillors in the Community events (meet us at the markets) held during the month of May.

Engagement planned

Once adopted, the Fees and Charges 2022-23 will be published and available on Council’s website.

Financial and Resource Considerations

The Fees and Charges 2022-23 applied for the use of Council facilities and provision of Council services contribute approximately 14 % of Council’s revenue for 2022-23. An estimated $21.388 million in revenue is budgeted for in 2022-23.

Legal /Policy

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Fees and Charges are a statutory requirement and ensure that revenue is obtained for the services Council provides. Fees and charges are collected and used to meet the needs of the community outlined in our Community Strategic Plan.

Environment and Climate Change

Fees and Charges revenue helps to support the delivery of a range of initiatives outlined in the Climate Resilience Strategy. The income we receive through Fees and Charges helps us plan to meet the needs of the community and the environment we live in now and into the future.

Economic

In accordance with Section 608 of the Local Government Act 1993 and other relevant legislation, Council is authorised to charge and recover approved fees and charges for any service it provides.

The fees and charges are generally intended to be imposed on the following services provided by Council:

· Supply of a product, service or commodity

· Provision of information

· Provision of a service in connection with the exercise of the Council’s regulatory functions, including receiving an application for approval, granting an approval, making an inspection and issuing a certificate

· Admission to any building or enclosure

· Use or benefit from Council’s assets and possessions

Risk

The financial risk to Council by not applying adequate and equitable Fees and Charges is significant. A detailed review of Council’s Fees and Charges will be undertaken in 2022 to ensure this risk is minimised.

Social / Cultural

Council’s approach when determining the amount of fees to be charged for goods and services considers the following factors:

· The cost of providing the service

· The importance of the service to the community

· Prices fixed by relevant industry bodies

· Any factors specified in Local Government regulations

· User pays principle with full or partial cost recovery

· Equity factors

· Financial, customer and resource use objectives

· Impact of taxation (for example, GST)

· Market pricing

In cases where a fee and/or charge is determined by legislation or other regulatory bodies, Council’s policy is to determine an amount consistent with any fee or charge determined.

Attachments

1 ⇩. Fees and Charges - Submissions Summary June 2022

2 ⇩. Fees and Charges 2022-23 for adoption

Ordinary

Meeting Notice and Agenda

To:

Copy:

Live Streaming of Council Meetings

Publishing of Agendas And Minutes

Ethical Decision Making and Conflicts of Interest

A guiding checklist for Councillors, officers and community committees

Ethical decision making

Conflict of interest

The test for conflict of interest

Identifying problems

Local Government Act 1993 and Model Code of Conduct

Agency advice

Disclosure of pecuniary interests / non-pecuniary interests

Agenda

Statement of Commencement of Live Streaming

Acknowledgement of Traditional Owners of Bega Valley Shire

1 Apologies and requests for leave of absence

2 Confirmation Of Minutes

3 Declarations

4 Public Forum – report by Mayor of deputations heard prior to the meeting

5 Petitions

6 Mayoral Minutes

7 Urgent Business

8 Staff Reports – Community, Environment and Planning

9 Staff Reports – Assets and Operations

10 Staff Reports – Business and Governance

11 Councillor Reports

12 Rescission/Alteration Motions

13 Notices of Motion

14 Questions with Notice

15 Questions without Notice

16 Confidential Business

Statement of Cessation of Live Streaming for the period of the Closed Session.

Statement of Re-Commencement of Live Streaming

17 Noting of Resolutions from Closed Session

18 Declassification of reports considered previously in Closed Session

Council	29 June 2022
*Item 9.1 - Attachment 1*	Attachment 1 - Water & Sewer Strategy Exhibition Feedback June 2022

Council	29 June 2022
*Item 9.1 - Attachment 2*	Attachment 2 - Water and Sewer Strategy - for adoption

Council	29 June 2022
*Item 9.2 - Attachment 1*	Water & Sewer policy and procedures feedback May 2022

Council	29 June 2022
*Item 9.2 - Attachment 2*	Council report 16 March 2022 W&SS Policies and Procedures

Council	29 June 2022
*Item 9.2 - Attachment 3*	Council report 07 June 2017 Section 64 Contributions

Council	29 June 2022
*Item 9.2 - Attachment 4*	Council report 13 December 2017 Section 64 Contributions supplementary

Council	29 June 2022
*Item 9.2 - Attachment 5*	DRAFT for Council 2022.06.29 policy 4.07 water and sewerage services v 6 FOR ADOPTION

Council	29 June 2022
*Item 9.2 - Attachment 6*	DRAFT for Council 2022.06.29 procedure 4.07.1 Connecting to our water or sewer system v 1 FOR ADOPTION

Council	29 June 2022
*Item 9.2 - Attachment 7*	DRAFT for Council 2022.06.29 procedure 4.07.2 Water and sewer billing, metering, and reductions v 1 FOR ADOPTION

Council	29 June 2022
*Item 9.2 - Attachment 8*	DRAFT for Council 2022.06.29 procedure 4.07.4 Water, sewer, and stormwater asset ownership v 1 FOR ADOPTION

Council	29 June 2022
*Item 9.4 - Attachment 1*	Council report dated 20 October 2021 - Twyford Hall, Merimbula

Council	29 June 2022
*Item 9.4 - Attachment 2*	Formal request from Twyford Hall Incorporated

Council	29 June 2022
*Item 10.1 - Attachment 1*	IPR Submissions Summary June 2022

Council	29 June 2022
*Item 10.1 - Attachment 2*	Bega Valley Shire Community Strategic Plan 2042 - For Adoption

Council	29 June 2022
*Item 10.1 - Attachment 3*	Bega Valley Shire Community Strategic Plan 2042 - Measures For Adoption

Council	29 June 2022
*Item 10.1 - Attachment 6*	Community Project Proposal Summary Sheet June 2022

Council	29 June 2022
*Item 10.1 - Attachment 7*	BVSC Additional Special Variation Determination and Instrument

Council	29 June 2022
*Item 10.3 - Attachment 1*	Fees and Charges - Submissions Summary June 2022

Council	29 June 2022
*Item 10.3 - Attachment 2*	Fees and Charges 2022-23 for adoption