|
OrdinaryMeeting Notice and Agenda
An Ordinary Meeting of the Bega Valley Shire Council will be held at Council Chambers, Biamanga Room Bega Valley Commemorative Civic Centre Bega on Wednesday, 8 May 2024 commencing at 2:00pm to consider and resolve on the matters set out in the attached Agenda.
|
Council meetings are recorded and live streamed to the Internet for public viewing. By entering the Chambers during an open session of Council, you consent to your attendance and participation being recorded.
The recording will be archived and made available on Council’s website www.begavalley.nsw.gov.au. All care is taken to maintain your privacy; however as a visitor of the public gallery, your presence may be recorded.
The Agendas for Council Meetings and Council Reports for each meeting will be available to the public on Council’s website as close as possible to 5.00 pm on the Thursday prior to each Ordinary Meeting. A hard copy is also made available at the Bega Administration Building reception desk and on the day of the meeting, in the Council Chambers.
The Minutes of Council Meetings are available on Council's Website as close as possible to 5.00 pm on the Monday after the Meeting.
1. Please be aware that the recommendations in the Council Meeting Agenda are recommendations to the Council for consideration. They are not the resolutions (decisions) of Council.
2. Background for reports is provided by staff to the Chief Executive Officer for presentation to Council.
3. The Council may adopt these recommendations, amend the recommendations, determine a completely different course of action, or it may decline to pursue any course of action.
4. The decision of the Council becomes the resolution of the Council, and is recorded in the Minutes of that meeting.
5. The Minutes of each Council meeting are published in draft format, and are confirmed by Councillors, with amendments if necessary, at the next available Council Meeting.
If you require any further information or clarification regarding a report to Council, please contact Council’s Executive Assistant who can provide you with the appropriate contact details
Phone (02 6499 2222) or email execassist@begavalley.nsw.gov.au.
· Is the decision or conduct legal?
· Is it consistent with Government policy, Council’s objectives and Code of Conduct?
· What will the outcome be for you, your colleagues, the Council, anyone else?
· Does it raise a conflict of interest?
· Do you stand to gain personally at public expense?
· Can the decision be justified in terms of public interest?
· Would it withstand public scrutiny?
A conflict of interest is a clash between private interest and public duty. There are two types of conflict:
· Pecuniary – regulated by the Local Government Act 1993 and Office of Local Government
· Non-pecuniary – regulated by Codes of Conduct and policy. ICAC, Ombudsman, Office of Local Government (advice only). If declaring a Non-Pecuniary Conflict of Interest, Councillors can choose to either disclose and vote, disclose and not vote or leave the Chamber.
· Is it likely I could be influenced by personal interest in carrying out my public duty?
· Would a fair and reasonable person believe I could be so influenced?
· Conflict of interest is closely tied to the layperson’s definition of ‘corruption’ – using public office for private gain.
· Important to consider public perceptions of whether you have a conflict of interest.
1st Do I have private interests affected by a matter I am officially involved in?
2nd Is my official role one of influence or perceived influence over the matter?
3rd Do my private interests conflict with my official role?
For more detailed definitions refer to Sections 442, 448 and 459 or the Local Government Act 1993 and Bega Valley Shire Council (and Model) Code of Conduct, Part 4 – conflict of interest.
Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.Officers of the following agencies are available during office hours to discuss the obligations placed on Councillors, officers and community committee members by various pieces of legislation, regulation and codes.
|
Contact |
Phone |
|
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 |
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 |
8 May 2024 |
Statement of Ethical Obligations
Recommendation
That the Minutes of the Ordinary Meeting held on 17 April 2024 as circulated, be taken as read and confirmed.
Pecuniary, Non-Pecuniary and Political Donation Disclosures to be declared and tabled. Declarations also to be declared prior to discussion on each item.
10.1 Quarterly Budget Review Statement (QBRS) March 2024 Q3.................................................. 8
10.2 Exhibition of the Integrated Planning and Reporting documents - Financial Year 2024-2025 42
Representations by members of the public regarding closure of part of meeting
Adjournment Into Closed Session, exclusion of the media and public Error! Bookmark not defined.
|
Council |
8 May 2024 |
Staff Reports – Business and Governance
08 May 2024
10.1 Quarterly Budget Review Statement (QBRS) March 2024 Q3.............................. 8
10.2 Exhibition of the Integrated Planning and Reporting documents - Financial Year 2024-2025............................................................................................................................. 42
|
Council 8 May 2024 |
Item 10.1 |
10.1. Quarterly Budget Review Statement (QBRS) March 2024 Q3
Quarterly Budget Review Statements (QBRS) are prepared and presented to Council in accordance with Section 203 of the Local Government (General) Regulation 2021.
Director Business & Governance
1. That Council receive and note the March 2024 Quarterly Budget Review Statement.
2. That the budget recommendations detailed in the attachment to this report be adopted.
Executive Summary
As part of the Integrated Planning and Reporting (IPR) framework, a Quarterly Budget Review Statement (QBRS) must be presented to Council for each financial quarter. This report provides the FY2024 March (Q3) Quarterly Budget Review Statement.
In summary, the QBRS report for the quarter ending 31 March 2024 provides the following projected results:
· Total Income decreased by $3.0m
- User fees and charges decreased by $0.7m
- Interest and Investment revenue increased by $1.2m
- Other revenue charges increased by $3.2m
- Operational grants increased by $9.4m
- Capital grants decreased by $16.1m
· Expenses decreased by $0.3m
· Consolidated net operating result before grants and contributions provided for capital purposes has a projected surplus of $11.6m
· Capital expenditure decreased by $18.7m
- Buildings decreased by $0.1m
- Other structures decreased by $12.6m
- Roads, bridges, and footpaths increased $6.5m
- Water supply network decreased by $6.3m
- Sewer supply network decreased by $8.1m
- Loan Repayments increased by $1.8m
· The revised projected cash figure at 30 June 2024 is expected to be $73.6m with external restrictions of $43.7m.
The Responsible Accounting Officer reports that the March quarterly review presented indicates Council's projected financial position at 30 June 2024 will be satisfactory.
Background
The QBRS is presented in a summary format which shows council’s income statement by fund and type.
The Capital Budget Review Statement (CBRS) is also prepared by type and provides variance details. It is the intent of this report to provide information on the financial performance of Council as a whole and, for each activity of Council.
The budgeting process sees Council develop annual budgets in March of each year. As can be expected, many external factors are unknown at that time and therefore it is important that routine budget reviews are undertaken and presented to Council for adoption. As required by the Local Government (General) Regulation 2021, we request budget adjustments through the QBRS process.
Council officers retain the ability to enquire, transact, and report on the detailed general ledger, which includes budgets. If there are specific questions relating to detailed transactional information, officers can provide answers to those questions.
Operationally, our teams are continuing to demonstrate improvement in our financial reporting and systems, focusing on reducing errors and improving real time information.
Options
A detailed review by council officers has been undertaken to prepare the QBRS. It is recommended this is adopted to continue to support Council staff to deliver for the community.
Council has the option to consider other budget adjustments.
Community and Stakeholder Engagement
Engagement undertaken
Internal engagement with staff has been undertaken to develop the recommendations for the QBRS.
Engagement planned
The budget adjustments requested in the QBRS are included as an attachment to the business paper and published on Council’s website. Once approved, the adjustments are made in our financial reporting systems. Future reports reflect the adopted changes.
Financial and Resource Considerations
Operating Result
Council’s consolidated budget net operating result has decreased by $2.7m since the December quarterly review. The revised March budget is projecting a surplus of $70.4m. The consolidated net operating result before grants and contributions provided for capital purposes has increased by $13.4m, resulting in a projected surplus of $11.6m.Income streams have seen decreases in fees and charges of $0.7m, an increase in investment income of $1.2m and other revenue of $3.2m. Other revenues include the sale of a building. To date net profit/loss on sale is not reflected in this figure.
Operational Grants have increased by $9.4m. Included in the total are new grants, previously received grants and new grants transferred to contract liability. The biggest impact is Regional and Local Roads Repair grants of $6.2m.
Capital Grants decreased by $16.1m. Included in the total are new grants, previously received grants and new grants transferred to contract liability. The largest to note are reductions in capital projects including Bega Sporting complex upgrade of $8.0m, Bega water treatment plant $4.7m and Bega STP Upgrade $4.1m.
Expenses decreased by $0.3m.
Employee costs decreased by $1.1m, borrowing costs decreased by $0.1m. Materials and services increased by $0.9m.
The recommended changes have the following impact on the net operating result by fund:
|
|
Revised Budget (incorporating revotes/carry overs |
Requested Changes |
Projected Year End Result |
|
General Fund |
51,308,783 |
5,028,626 |
56,337,409 |
|
Water Fund |
11,416,184 |
(4,627,895) |
6,788,289 |
|
Sewer Fund |
5,879,377 |
(1,593,731) |
4,285,645 |
|
Waste Fund |
4,450,255 |
(1,487,077) |
2,963,178 |
The recommended changes have the following impact on the net operating result before grants and contributions provided for capital purposes by fund:
|
|
Revised Budget (incorporating revotes/carry overs |
Requested Changes |
Projected Year End Result |
|
General Fund |
(6,179,763) |
13,126,928 |
6,947,165 |
|
Water Fund |
(392,316) |
165,764 |
(226,552) |
|
Sewer Fund |
3,441,377 |
626,019 |
4,067,395 |
|
Waste Fund |
1,361,081 |
(531,578) |
829,503 |
Capital
Capital expenditure is estimated to decrease by $18.7m in the March QBRS to $118.3m. The decrease includes Bega Sporting complex upgrade of $8.0m, Bega water treatment plant $4.7m and Bega STP Upgrade $4.1m capital projects.
Cash and Investments
Council had cash and investments of $126.7m at 31 March 2024. The revised projected cash figure at 30 June 2024 is expected to be $73.6m of which $43.7m is expected to be externally restricted.
Legal /Policy
In accordance with Regulation 203(1) of the Local Government (General) Regulation 2021, the Responsible Accounting Officer must prepare and submit to the Council a Budget Review Statement after the end of each quarter.
Clause 203 of the Local Government (General) Regulations 2021 states:
Budget Review Statements and revision of estimates
1. Not later than two months after the end of each quarter (except the June quarter), the responsible accounting officer of a council must prepare and submit to the council a budget review statement that shows, by reference to the estimate of income and expenditure set out in the statement of the council’s revenue policy included in the operational plan for the relevant year, a revised estimate of the income and expenditure for that year.
2. A budget review statement must include or be accompanied by:
a. A report as to whether or not the responsible accounting officer believes that the statement indicates that the financial position of the council is satisfactory, having regard to the original estimate of income and expenditure, and
b. If that position is unsatisfactory, recommendations for remedial action.
c. A budget review statement must also include any information required by the Code to be included in such a statement.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Strategic Alignment
Council’s 2022–2025 Delivery Program and 2023-2024 Operational Plan provides the Financial Estimates 2022–2025 which includes the Budget for 2023-2024 (FY2024).
Review and adoption of Quarterly Budget Review Statement aligns with the following FY2024 integrated planning and reporting:
CSP Strategy E.4 - Council has robust financial management processes to ensure ongoing viability and value for money.
Delivery Program E.4.1 – Improve the provision of corporate financial services
Operational Plan Finance | core business - Preparation of compliant financial reports
Environment and Climate Change
There are no direct environment and climate change implications associated with presenting this report.
Economic
Council and its expenditure have a significant economic impact on the Bega Valley. The recommended adjustments to the adopted budget ensure as an organisation we can continue to deliver the services and projects committed to in the FY2024 Operational Plan.
Risk
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 QBRS process helps to provide transparency and accountability into the financial management of Council.
Social / Cultural
The attachments to this report detail the recommended adjustments to our budget, which may have some impacts on social and cultural services.
The officer’s recommendation is to support the continued service provisions and associated budgets as detailed in the organisation’s plans as contained in the attached
Attachments
1⇩. Quarterly Budget Review Statement Q3 March 2024
|
Item 10.2 |
10.2. Exhibition of the Integrated Planning and Reporting documents - Financial Year 2024-2025
This report recommends that the draft Delivery Program 2022-25 and Operational Plan 2024-25, draft Fees and Charges 2024-25, draft Long Term Financial Plan 2024-33 and the Strategic Asset Management Plan 2022-25 - June 2024 update are considered by Council and placed on public exhibition.
Director Business & Governance
1. That the draft Delivery Program 2022-25 and Operational Plan 2024-25 including Council’s Budget and Revenue Policy, the draft Fees and Charges 2024-25, the draft Long Term Financial Plan 2024-33 and the draft Strategic Asset Management Plan 2022-25 - June 2024 update be placed on public exhibition for 28 days.
2. Following public exhibition, a further report be provided to Council for consideration of submissions and adoption of the Delivery Program 2022-25 and Operational Plan 2024-25 including Council’s Budget and Revenue Policy, the Fees and Charges 2024-25, the Long Term Financial Plan 2024-33 and the Strategic Asset Management Plan 2022-25 - June 2024 update at the Council meeting on 26 June 2024.
Executive Summary
Under the NSW Integrated Planning and Reporting (IP&R) framework Councils are required to implement a 4-year Delivery Program and an annual Operational Plan and budget, along with annual Fees and Charges. As part of the budget setting process for next financial year Council has also reviewed and updated its Long Term Financial Plan and Strategic Asset Management Plan.
This is the second year of the Assets and Services Special Rate Variation (SRV) that was approved by IPART and adopted by Council in June 2023. The Assets and Services SRV will provide additional rates income of $6,543,355 in 2024-25. This figure also includes new rateable property assessments.
It is recommended that these documents are placed on public exhibition for 28 days, from Wednesday 8 May 2024 until close of business on Wednesday 5 June 2024.
Background
The Local Government Act 1993 requires all NSW councils to review and adopt key integrated plans under the NSW Integrated Planning and Reporting (IP&R) framework. Councils are required to prepare a Community Strategic Plan, Resourcing Strategy, Delivery Program and Operational Plan.
The Community Strategic Plan is the highest-level plan that Council prepares and is a whole of community plan, reviewed and developed in partnership with the community. It identifies and articulates the community’s long-term aspirations, priorities and vision.
The Delivery Program details the activities that the Council will deliver over its four-year term (noting this term of Council is shorter with Local Government elections in September 2024) and the strategies it will implement in consultation with the community and contained in the Community Strategic Plan. The Resourcing Strategy details Council’s approach to long term financial planning, workforce planning, digital investment and asset management. It provides a vital link between the Community Strategic Plan and Delivery Program.
Each year Council undertakes a forward planning and budgeting process which is compiled into the annual Operational Plan. It details the actions to be undertaken during the next financial year and includes the annual budget and revenue policy.
Delivery Program 2022-25 and Operational Plan 2024-25
The Delivery Program for this term of Council and the Operational Plan for 2024-25 are presented as a combined document (Attachment 1). The Delivery Program details Council’s response and commitment to implementing, within available resources, the long term vision contained in the Community Strategic Plan 2042.
The Operational Plan 2024-25 outlines what Council will do next financial year to meet the needs of the community, within the available funding sources. The Operational Plan is divided into the service areas of Council. Each service area has identified the core business and key improvement projects they will deliver, with the budget and staffing levels they have. The draft 2024-25 budget includes the recommended QBR3 adjustments that are proposed in a separate report to this Council meeting.
For the second year Council is embedding the South East NSW Resilience Blueprint into our planning to ensure that resilience principles are incorporated and continuously improved upon as part of everything we do. Throughout the Operational Plan a resilience icon has been applied that highlights the work we are doing in delivering upon the Resilience Blueprint.
Revenue Policy
The Operational Plan contains Council’s revenue policy for 2024-25. The revenue policy outlines the proposed rating structure, pensioner rebates, borrowings, debt recovery, transfer of rates and supply charges for water, sewer and waste services. Below is the projected general rates income including the second year of the approved Assets and Services SRV.
Given the volume of current and future capital projects and service provision requirements in Waste Services and Water and Sewer Services, balanced with a recognition of escalating construction costs, Waste Services charges and Water and Sewer access and usage charges have increased by 6.9%.
Long Term Financial Plan
Council has reviewed its Long Term Financial Plan (LTFP) that was last adopted in June 2023 in preparing the 2024-25 budget. The draft 2024-33 LTFP continues to model 3 options.
The LTFP provides the blueprint for the future delivery of works and services with a background of affordability and long-term financial sustainability. As the LFTP outlines, even with the current Assets and Services SRV, Council is not able to remain financially sustainable. Rising costs exceed our capacity to generate income and meet the needs of our community with service provision and asset maintenance. (Attachment 2)
Strategic Asset Management Plan
Council has reviewed and updated the Strategic Asset Management Plan and Asset Management Plan summaries to align with the updated LTFP (Attachment 3). Council manages and maintains more than $1.9 billion of assets, which enable us to provide services to our community. These assets include roads, drainage, pathways, water and sewer infrastructure, community facilities, parks and recreational facilities, administration buildings, cemeteries, works depots, plant and vehicle fleet and the Merimbula Airport. The level of service delivered by these assets is largely determined by the way they are maintained and operated within Council’s available resources.
Fees and Charges
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. All Council’s fees and charges are reviewed on an annual basis prior to finalisation of Council’s budget and several Council facility management committees have provided their input into draft fees for next financial year. Fees and charges in general (not including statutory fees, fees set by management committees or those aligned with CPI) have been increased by 4.9%. The draft Fees and Charges 2024-25 are Attachment 4 to this report.
In March 2024 Council was advised that it would be required to support a new internment levy commencing 1 July 2024. The levy funds Cemeteries and Crematoria NSW (CCNSW) to support and regulate the sector. Council Cemeteries staff will complete a data activity report on these services with CCNSW, which will generate an invoice to Council. The new fees have been added to the draft Fees and Charges.
The new Levy from 1 July 2024 $41 on cremation
$63 per ash interment
$156 per burial
More information on the new levy is available here.
Options
Council has a range of options when considering the recommendations included in this report. Delaying the exhibition of the IPR documents will have future impacts. Council is legislatively required to have its suite of IPR documents adopted by 30 June 2024.
Community and Stakeholder Engagement
Engagement undertaken
Extensive internal engagement has been undertaken in the development of these IP&R documents including Service Reviews in February and March for each service area within Council. Councillors have been engaged in the development of these documents and the Audit Risk and Improvement Committee will review them at its next meeting.
Engagement planned
Council will engage with the community from 8 May 2024 to close of business on Wednesday 5 June 2024 by:
· Making the IPR suite of documents available for the community to read on Council’s website, in our public libraries and at the customer service counter in Zingel Place, Bega
· Informing the community about the public exhibition through the media, social media and Council’s newsletters; inviting the community to provide feedback through a Have Your Say page on Council’s website.
Financial and Resource Considerations
This is the second year of the Assets and Services Special Rate Variation (SRV) that was approved by IPART and adopted by Council in June 2023. The Assets and Services SRV will provide additional rates income of $6,543,355 in 2024-25. This figure also includes new rateable property assessments. The notional general income from rates will be $39,927,823.
In December 2023, IPART advised Council that its rate peg amount for the 2024-25 financial year would be 4.9% including a 0.4% population factor. Council was instructed to assume a 2.5% rate peg when applying for the SRV. The current rate peg is higher than the amount IPART instructed us to assume, which has resulted in a shortfall in the funding we were anticipating from the SRV increase. This shortfall combined with the increasing costs across our services is continuing to adversely impact Council’s financial position.
The income statement in the Operational Plan provides an overview of the total estimated income and expenditure for each of Council’s General, Water, and Sewer Funds as well as the Consolidated fund.
The focus in developing the 10-year Long Term Financial Plan (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.
It is reiterated that the budget is a forecasting tool and what is presented is based on what is known. As changes are identified, approval to amend the adopted budget is sought from Council each quarter through the Quarterly Budget Review Statement reports.
Legal /Policy
Section 404 of the Local Government Act 1993 requires Council to have a Delivery Program to implement the strategies established in its Community Strategic Plan, within the resources available as identified under the Resourcing Strategy.
Section 405 of the Local Government Act 1993 requires Council to adopt an Operational Plan before the beginning of each financial year which details the activities to be engaged in by the Council during the year as part of the Delivery Program. The Operational Plan must include a statement of the Council’s revenue policy for the year covered by the Plan. The revenue policy must include the statements and particulars required by legislation.
The Office of Local Government’s Integrated Planning and Reporting Guidelines and Handbook are comprehensive tools which have been used in the revision of this suite of IP&R documents.
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 prior to adoption.
The Delivery Program and Operational Plan draws on and implements actions contained in adopted Council policy documents.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Strategic Alignment
The documents once exhibited and adopted, will guide the Council’s operations under the Integrated Planning and Reporting Framework.
Council has a responsibility to ensure that adequate services are provided to the community, and that financial planning is transparent to provide confidence in Council’s ability to deliver on the community’s priorities.
CSP 2042 Theme: Our civic leadership – Local leadership is strong, consultative and responsive to our community’s needs
CSP 2042 Strategy: E.1 Lead, govern and regulate in an ethical, equitable, transparent and accountable way
Delivery Program 2022-25 Action: E3.1 - Support implementation of Council’s strategies and plans and report on progress
Environment and Climate Change
Council’s LTFP models our ongoing financial need to maintain our current levels of service. Council’s financial sustainability is impacted by numerous factors including the increasing frequency and severity of weather events on Council’s infrastructure. Our assets team continue to consider the implications of maintaining and renewing our existing assets within a changing climate. Council’s decision to proceed with applying for an SRV below was what initially recommended by staff will result in a reduction to the required capital program that will only serve to further exacerbate the impact of a changing climate on Council’s assets.
Several of the Delivery Program actions and Operational Plan activities listed support the implementation of Council’s adopted Climate Resilience Strategy, amongst other environmental focussed work.
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 and long-term financial planning have flow on effects to the local economy and this is considered as part of the LTFP and annual budget development process. The budget for next financial year continues to see investment in resources that support our local economy as an employer and service provider and as a procurer 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 forward focussed IPR and annual budget development process helps to provide transparency and accountability into the financial management and forward planning of Council.
Social / Cultural
Council has insight into what the community wants through our IP&R and community engagement initiatives; and knows that our community places a high priority on maintaining our current levels of service. Council manages approximately $1.9b worth of assets for the community including things like buildings, swimming pools, playgrounds, libraries, bridges, roads, waste facilities and a vast water and sewer network. We are a large shire (by area) and maintaining and renewing these assets is expensive. We also have a relatively small number of ratepayers compared to the size of our shire and vast areas of state and national parks and forests from which we are unable to generate income.
The documents being placed on public exhibition will have future social and cultural implications. Council is aware that the second year of the SRV may cause undue hardship for ratepayers who have been financially impacted by the bushfires and pandemic. However increasing investment in Local Government, only serves to improve the communities within which they operate.
The challenge Council faces is balancing affordability with the community’s desire to maintain our current levels of service. Impacts of the proposed budget once adopted will be monitored throughout the year and any adjustments needed is done through the quarterly budget review process.
Attachments
1⇩. DRAFT 2022-25 Delivery Program 2024-25 Operational Plan
2⇩. DRAFT Long Term Financial Plan 2024-33_ May Exhibition
3⇩. DRAFT 2022-25 Strategic Asset Management Plan June 2024 Update
4⇩. DRAFT 2024-25 Fees and Charges Report For Exhibition
|
8 May 2024 |
|
|
Item 10.2 - Attachment 3 |
DRAFT 2022-25 Strategic Asset Management Plan June 2024 Update |
