NAMBUCCA SHIRE COUNCIL

 

 

Ordinary Council Meeting - 12 February 2015

 

FURTHER LATE AGENDA                                                                    Page

 

 

 

   

11      Assistant General Manager Engineering Services Report

11.4   2015/2016 NSW Rural Fire Services 'BID'........................................................................... 2  

 

12      General Manager's Summary of Items to be Discussed in Closed Meeting

12.3   Outcome of "Without Prejudice" Conciliation Negotiations - Valla Quarry

It is recommended that the Council resolve into closed session with the press and public excluded to allow consideration of this item, as provided for under Section 10A(2) (g) of the Local Government Act, 1993, on the grounds that the report contains advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege.

 

 

 

 

   


        


Ordinary Council Meeting                                                                                              12 February 2015

Assistant General Manager Engineering Services Report

ITEM 11.4    SF85                120215         2015/2016 NSW Rural Fire Services 'BID'

 

AUTHOR/ENQUIRIES:    Paul Gallagher, Assistant General Manager - Engineering Services         

 

Summary:

 

The Rural Fire Service Zone Manager for the Lower North Coast Zone presented two options for the draft 2015/16 Rural Fire Service “BID to Council at the meeting held 29 January 2015 containing plant acquisition and/or infrastructure improvements to buildings.

 

The two options provided to Council had significant increases of $84,144.00 (39.9%) and $54,900.00 (24.2%) respectively. Under the current economic climate, the increase is unable to be funded unless Council considers the deferral of Council infrastructure projects or Council plant replacement to enable a balanced budget.

 

This report provides Council with an additional option (Option 3 and 4) for consideration that remains outside the realms of the rate pegging levy with a net 4.5% increase or $9623.00 to the 2014/15 budget by adopting option two and removing the plant acquisition and/or infrastructure improvements to buildings and delaying the inevitable requirement to update the RFS Red Fleet.

 

 

Recommendation:

 

1        That Council:

 

a)   endorse Option 4 being an allocation outside the realms of rate pegging levy imposed by the state Government for the Rural Fire Service “BID” for 2015/16 financial year being an amount of $220,220.00 a net increase of 4.5% from the 2014/15 budget.

 

b)   Council thank the Rural Fire Service Zone Manager for the Lower North Coast Zone for his concerted effort to endeavour to provide a 2015/16 Rural Fire Service “BID” for the Nambucca Shire Council within the realms of the rate pegging levy and advise that Council are unable to fund the proposed plant replacement this financial year.

 

c)   Council seek a ten year financial plan on the plant replacement and infrastructure upgrade from the Rural Fire Service Zone Manager for the Lower North Coast Zone that can be included into Councils long term financial planning and asset management plans.

 

2        That Council write to the Commissioner for the NSW Rural Fire Service, the Minister for Police and Emergency Services and the Deputy Premier, The Hon Andrew Stoner MP advising that:

 

a)   Council considered the two options presented by the Rural Fire Service Zone Manager for the Lower North Coast Zone 2015/16 Rural Fire Service “BID” at Council’s January meeting held on 29 January 2015 and advise that Council were unable to fund the proposed plant replacement within the options presented this financial year as the contribution was in excess of the realms of the rate pegging levy imposed by the state Government.

 

b)   The 2015/16 Rural Fire Service “BID” of $2202,20.00 a net increase of 4.5% from the 2014/15 budget has been endorsed by Council at its meeting held  on 12 February 2015 and that Council will not endorse any further increases to the draft bid as presented.

 

c)   Council acknowledge that the Rural Fire Service Zone Manager for the Lower North Coast Zone has endeavoured to again provide a 2015/16 Rural Fire Service “BID” for the Nambucca Shire Council, within the realms of the rate pegging levy.

 

d)   That Council are unable to fund the proposed plant replacement in Option one and two presented by the Rural Fire Service Zone Manager for the Lower North Coast Zone this financial year under the current economic climate

 

e)   Council have requested a ten year financial plan on the plant replacement and infrastructure upgrade from the Rural Fire Service Zone Manager for the Lower North Coast Zone that can be included into Councils long term financial planning and asset management plans.

 

f)    Trust that the Commissioner for the Rural Fire Service and State Government will adhere to the same parameters of the rate pegging levy imposed onto Local Government.

 

g)   Request the Commissioner for the Rural Fire Service and Minister for Police and Emergency Services to provide a full detailed breakdown of the state expenditure that encompasses PART B of the RFS budget to ensure open transparency of the RFS budget when Council presents its budget to the Nambucca community.

 

 

OPTIONS:

 

1        Advise the NSW RFS Zone Manger that Council are only prepared to accept the draft BID indexed as per the rate pegging levy of 2.4% and seek a revised “BID”.

2        Council endorse OPTION 1 the “suggested BID” a net increase of $84,144.00 being 39.9% of the 2014/15 budget.

3        Council endorse OPTION 2 the “alternative BID” a net increase of $54,900.00 being 24.2% of the 2014/15 budget.

4        Council consider OPTION 3 or 4 with the removal of the plant replacement and infrastructure improvements.

5        Council determine a compromise on the “BID” above the rate pegging levy of 2.4% within the affordability of Council and seek a revised “BID”.

6        Council may consider the replacement of one appliance such as the CAT 9 - Scotts Head which is included on both options for consideration.

 

 

DISCUSSION:

 

The NSW Rural Fire Service Zone Manager for the Lower North Coast Zone addressed Council at the meeting held 29 January 2015 and presented the draft Rural Fire Service “BID” for 2015/16.  The following options were provided for Council consideration:

 

·      Option 1 the “suggested BID” a net increase of $84,144.00 on the 2014/15 budget.

·      Option 2 the “alternative BID” a net increase of $54,900.00 on the 2014/15 budget.

Council resolved to “receive a further report at the 12 February 2015 Council meeting concerning the matter.”

The NSW RFS budget comprises of two sections being:

 

·      PART A The regional operational costs for the Lower North Coast Zone for Nambucca Shire

·      PART B The operational state costs for the NSW RFS

 

and Council are required to contribute 11.7% of the total budget.

 

Mr Ison advised the NSW RFS Liaison Committee on Wednesday 11 February 2015 that Part B of the budget may not necessarily receive the full 11.7% reimbursement from the State and he incorporated an amount of $76,448.00 in his budget presentation.  It also appears that an amendment to any component within Part A (Regional component) or PART B (State Component) results in an increase or decrease to the budget bottom line based on a sliding scale and not a direct 11.7%.

 

This report provides Council with additional options from staff for consideration that unfortunately remains outside the realms of the rate pegging levy.  By removing the plant acquisition and/or infrastructure improvements to buildings and delaying the inevitable requirement to update the RFS Red fleet there is still a 4.5% increase to that of the 2014/15 budget.  Based on the budget figures supplied from the Zone Manager, Lachlann Ison, Option 4 contains a net increase of $ 9,623.00 or 4.5% on the 2014/15 budget.

 

Mr Ison advised the Liaison Committee on Wednesday 11 February 2015 that the RFS fleet is aging and will require replacement and he would develop a ten year financial plan on the plant replacement and infrastructure upgrade that can be included into Council’s long term financial planning and asset management plans

 

YEAR ALLOCATION

PART A

PART B

TOTAL

11.7% Council Contribution of TOTAL A & B

2009/10

$    529,558.00

$    830,754.00

$ 1,368,312.00

$ 160,092.50

2010/11

$    927,303.00

$ 1,004,482.00

$ 1,931,085.00

$ 225,936.95

2011/12

$ 1,071,139.00

$ 1,164,555.26

$ 2,235,946.10

$ 261,605.69

2012/13

$    940,674.00

$ 1,199,357.00

$ 2,140,034.00

$ 250,840.00

2013/14

$    963,274.00

$ 1,029,250.00

$ 1,992,524.00

$ 233,125.30

2014/15

$    889,485.00

$   911,348.00

$ 1,800,833.00

$ 210,697.46

2015/16 Initial Bid Option 1 - Suggested

$ 1,342,366.00

$ 1,177,655.00

$ 2,520,021.00

$ 294,842.43 39.9% increase

2015/16  Initial Bid Option 2 - alternative

$ 1,179,866.00

$ 1,091,910.00

$ 2,271,776.00

$ 265,797.82 26.2% increase

2015/16  Option 3 – alternative from staff

$ 957,357.00

$ 1,882,223.00

$ 2,839,580.00

$220,220.00 4.5% increase

 

 

CONSULTATION:

 

General Manager

NSW Rural Fire Service

Liaison Committee

 

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There are no implications for the environment.

 

Social

 

There are no social implications.

 

Economic

 

The economic implications associated with the ability of Council to fund RFS contribution increases are off-set against the reduction of Council services to Nambucca Valley communities to compensate for the increase

 

Risk

 

There is the risk of an increase on the draft “BID” once it leaves the regional office and forwarded to the state.  The draft “BID” presented by the Zone Manager is lean and in the event that the budget is over expended by the RFS, Council will be required to pay for the over expenditure.

 

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

The 2014/15 budget incorporated the RFS contribution based on advice of the RFS Area Zone Manager for the Lower North Coast Zone. The figures supplied for the 2015/16 BID will be included in the draft Council budget and management plan. There is the risk of an increase on the draft “BID” once it leaves the regional office and forwarded to the state.

 

Source of fund and any variance to working funds

 

There are no further variations anticipated to working funds for this financial year.

 

Attachments:

1

4282/2015 - Report Attachment 2015-16 RFS budget Option 3 and 4 - without plant

 

2

4283/2015 - Report Attachment 2015-16 RFS Budget Spreadsheet Options 1 and 2 with plant

 

  


Ordinary Council Meeting - 12 February 2015

2015/2016 NSW Rural Fire Services 'BID'

 


Ordinary Council Meeting - 12 February 2015

2015/2016 NSW Rural Fire Services 'BID'