NAMBUCCA SHIRE COUNCIL

 

 

Ordinary Council Meeting - 25 June 2015

 

LATE AGENDA                                                                                        Page

 

 

PUBLIC FORUM

 

NAIDOC WEEK PRESENTATION - Frank Partridge VC Primary School

Presentations from students Jett Jarrett and Damon Simon-Wilson

 

 

10      Assistant General Manager Corporate Services Report

10.3   Revised Long Term Financial Plan..................................................................................... 2

10.4   Amended Making of Rates and Charges 2015/2016.......................................................... 13

10.5   Fit For the Future Submission Update.............................................................................. 19    


       


Ordinary Council Meeting                                                                                                    25 June 2015

Assistant General Manager Corporate Services Report

ITEM 10.3    SF1621            250615         Revised Long Term Financial Plan

 

AUTHOR/ENQUIRIES:    Scott Norman, Assistant General Manager Corporate Services         

 

Summary:

 

The draft 2015-2025 Long Term Financial Plan (LTFP) has been modified to reflect the final Fit for the Future modelling. The changes further modify the LTFP that went on public exhibition and relate to years commencing 2017.  

 

Recommendation:

 

That Council adopt the Revised Long Term Financial Plan 2015-2025.

 

 

OPTIONS:

 

Council can amend the documents as it sees fit.  Council is required to have adopted Integrated Planning and Reporting Documents by the 30 June 2015.

 

 

DISCUSSION:

 

Council has to submit a “Council Improvement Proposal” as part of the Fit for the Future (FFTF) reforms by 30 June 2015.

 

Strategies employed to improve Council’s performance against the FFTF benchmarks have changed some forward projections in the LTFP.  Given the time frames dictated by the FFTF process it is proposed these changes are incorporated as part of the current Integrated Planning and Reporting Cycle.  The changes are variations to the documents that went on public display and do not represent fundamental variations.

 

The revised document includes additional rates revenue of $100,000 in 2018. This has been budgeted as a special rate variation; it is noted in the FFTF submission that this additional revenue may be available from a divided end from the Water Fund.  The need and source of the funds will be confirmed in the 2018-19 budget.

 

The revised LTFP has had forecast expenditure of $500,000 per annum on land slip remediation deleted.  The expenditure was forecast to commence in the 2017-18 budget year.  The expenditure is beyond Council’s means to fund if the FFTF benchmarks are to be achieved.  The expenditure was part of a longstanding plan but there were no specific works identified.  The highest risk area was Riverside Drive, Nambucca Heads and those works are due for completion in August 2015.  Council has some ongoing monitoring of land movements, but this does not relate to Council control land and no additional works are foreseen.  In the past landslips have happened during declared disaster events and restoration of Council assets has been funded through Natural Disaster Relief and Recovery Arrangements.

 

A copy of the revised LTFP is attached for Council’s reference.

 

 

CONSULTATION:

 

The draft documents have been on public display for public comment for the required time.

Council developed the draft documents through a budget workshop and numerous reports.

Council Officers with budget responsibility all contributed.

 

These specific changes were developed in consultation with:

 

Craig Doolan, Manager of Financial Services

Michael Coulter, General Manager

Paul Gallagher, Assistant General Manager Engineering Services          

SUSTAINABILITY ASSESSMENT:

 

Environment

 

The LTFP contain activities involving environmental investigations, work, and reporting and compliance activities.  The programs funded by the Environmental Levy were advertised for public comment concurrently with the Budget documents.

 

Social

 

The support provided in the LTFP for community services and not for profit organisations is similar to the plan adopted in the prior year and unchanged from the previous Draft.

 

Economic

 

The support provided in the LTFP for economic development is similar to the Plan adopted in the prior year and unchanged from the previous Draft. 

 

Risk

 

Service levels and asset management practices inherently reflect the risk appetite of Council.  Both of these are established as part of the IPR process.

 

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

Budgeted increased Rates Revenue of $100,000 in the year 2018-19.

 

Budgeted decrease expenditure of $500,000 on land slip remediation in the years 2017-2025.

 

 

Source of fund and any variance to working funds

 

All Funds have sufficient cash to meet the liquid equity levels mandated by Council policy.

 

Service level changes and resourcing/staff implications

 

Nil

 

 

Attachments:

1

18262/2015 - Long Term Financial Plan - Revised Presented to Council 25 June 2015

 

  


Ordinary Council Meeting - 25 June 2015

Revised Long Term Financial Plan

 










Ordinary Council Meeting                                                                                                    25 June 2015

Assistant General Manager Corporate Services Report

ITEM           SF1873            250615         Amended Making of Rates and Charges 2015/2016

 

AUTHOR/ENQUIRIES:    Chris Wills, Rates Officer         

 

Summary:

 

The Independent Pricing and Regulatory Tribunal (IPART) confirmed a rate increase of 5.0% under Section 508A (1) of The Local Government Act 1993 for 2015/2016 financial year.

 

Council is now required to make the rates and charges in accordance with Section 535 of The Local Government Act 1993 (hereinafter referred to as the Act)

 

 

Recommendation:

 

1          That it be confirmed that in accordance with Section 501 of the Act, the annual access charge for water supply services to all properties connected or able to be connected to Council’s water supply in accordance with Section 552(1) of the Act for 2015/2016 is made at one hundred and twenty eight dollars ($128.00) per occupancy for each assessment, for a 20mm or 25mm connection; five hundred and twelve dollars ($512.00) for a 40mm connection, eight hundred dollars ($800.00) for a 50mm connection, two thousand and forty eight dollars ($2,048.00) for a 80mm connection and three thousand two hundred dollars ($3,200.00) for a 100mm connection, to be charged per connection for each assessment; and one hundred and twenty eight dollars ($128.00) for vacant or unconnected land per assessment, and have a short title of “Water Access”; and a consumption charge of two dollars and ninety cents ($2.90) per kilolitre to apply to all water consumption billed during the financial year and such charge to have a short title of “Water Charge” in accordance with Section 543 of the Act.

 

2          That it be confirmed that in accordance with Section 501 of the Act the annual access charge for sewerage services to all properties connected or able to be connected to Council's sewer in accordance with Section 552(3) of the Act for 2015/2016 is made at six hundred and twelve dollars ($612.00) per occupancy for each assessment for residential connections; for non-residential connections two hundred and thirty nine dollars ($239.00)  for 20mm connection, nine hundred and fifty six dollars ($956.00) for 40mm connection, one thousand four hundred and ninety four dollars ($1,494.00) for 50mm connection, three thousand eight hundred and twenty four dollars ($3,824.00) for 80mm connection and five thousand nine hundred and seventy five dollars ($5,975.00) for 100mm connection, per connection for each assessment; and two hundred and thirty nine dollars ($239.00) for vacant or unconnected land per assessment, and have a short title of “Sewer Access”; and a sewer usage charge of three dollars and thirty one cents ($3.31) per kilolitre to be calculated on the estimated volume discharged from properties, excluding residential connections, using the total water consumption based on NSW Department of Water and Energy guidelines and such charge to have a short title of "Sewer Usage Charge" and be included on the ‘Water Account’.

 

3          That it be confirmed that in accordance with Section 501 of the Act, the waste management tip provision charge for 2015/2016 is made at one hundred and forty three dollars ($143.00) per assessment for properties categorised as Business or Farmland, or are Non Rateable, that are not vacant but do not, or have elected not to, receive a commercial waste service or are not on a waste collection route, or vacant land where the service is available; such charge to have the short title of “Tip Provision”.


 

4          That in accordance with Section 496 of the Act, the annual charge for 2015/2016 for domestic waste service on all occupied rateable land in the Shire, categorised Farmland or Residential under Section 515 or 516 of the Act, or are Non Rateable properties to which a domestic waste service is provided, is made at five hundred and twenty seven dollars ($527.00) per occupancy for each assessment which contains up to and including five residential occupancies, such charge to have a short title of “Full Domestic Waste Service”, the amount of the annual charge will be the amount derived by applying the formula A = B x $527.00, where “A” equals the annual charge, “B” equals the number of occupancies and $527.00 is the unit price. Residential assessments with six or more occupancies, upon request, may be charged one full service charge of five hundred and twenty seven dollars ($527.00) and sufficient additional bins, at the appropriate charge, to service the waste collection requirements of the assessment, as agreed between the property owner and the Council’s Waste Management Officer.

            A waste management ‘tip provision’ annual charge of one hundred and forty three dollars ($143.00) for the year 2015/2016 is made for properties categorised Farmland or Residential or are Non Rateable, that are not vacant, but do not receive a domestic waste service or are not on a waste collection route.

 

5          That it be confirmed that in accordance with Section 496 of the Act the annual charge for 2015/2016 for domestic waste on all vacant rateable land in the Shire, categorised Residential (under Section 516 of the Local Government Act 1993) or are Non Rateable and located within the confines of the towns of Nambucca Heads, Valla Beach, Hyland Park, Macksville, Bowraville and Scotts Head and the villages of Taylors Arm Upper, Taylors Arm Lower, Eungai Rail, Eungai Creek, Warrell Creek and Donnellyville and all land within the rural sector with a residential building entitlement, including land categorised as Farmland, where the domestic waste collection service is available, is made at one hundred and forty three dollars ($143.00) per assessment, such charge to have short title of “Vacant Waste Management”.

 

6          That it be confirmed that in accordance with Section 501 of the Act, the annual charge for 2015/2016 for waste service on all occupied rateable land in the Shire, categorised Business (under Section 518 of the Act) to which a waste service is provided, or is Non Rateable land to which a non-residential waste service is provided, is made at five hundred and twenty seven dollars ($527.00) per occupancy per assessment, such charge to have a short title of “Full Commercial Waste Service”, the amount of the annual charge will be the amount derived by applying the formula A = B x $527.00, where “A” equals the annual charge, “B” equals the number of separate occupancies and $527.00 is the unit price.

 

7          That it be confirmed that in accordance with Section 501 of the Act the annual charge for waste for 2015/2016 on all vacant rateable land in the Shire, categorised Business (under Section 518 of the Act) or is Non Rateable land, and located within the confines of the towns of Nambucca Heads, Valla Beach, Hyland Park, Macksville, Bowraville and Scotts Head and the villages of Taylors Arm Upper, Taylors Arm Lower, Eungai Rail, Eungai Creek, Warrell Creek and Donnellyville, is made at one hundred and forty three dollars ($143.00) per assessment, such charge to have a short title of “Vacant Waste Management”.


 

8          That it be confirmed that in accordance with Section 496A & 510A of the Act the annual charge for 2015/2016 for stormwater management services on all rateable privately owned developed non strata residential land located within the confines of the towns of Nambucca Heads, Valla Beach, Hyland Park, Macksville, Bowraville and Scotts Head is made at twenty five dollars ($25.00) per land parcel/assessment, such charge to have a short title "Stormwater Charge".

 

9          That it be confirmed that in accordance with Section 496A & 510A of the Act the annual charge for 2015/2016 for stormwater management services on all rateable privately owned developed strata residential land located within the confines of the towns of Nambucca Heads, Valla Beach, Hyland Park, Macksville, Bowraville and Scotts Head is made at twelve dollars and fifty cents ($12.50) per lot/assessment, such charge to have a short title "Stormwater Res-Strata ".

 

10         That it be confirmed that in accordance with Section 496A & 510A of the Act the annual charge for 2015/2016 for stormwater management services on all rateable privately owned developed business land and located within the confines of the towns of Nambucca Heads, Valla Beach, Hyland Park, Macksville, Bowraville and Scotts Head is made at twenty five dollars ($25.00) per land parcel/assessment plus an additional twenty five dollars ($25.00) for each 350 square metres or part of 350 square metres by which the area of the parcel of land exceeds 350 square metres, such charge to have a short title "Stormwater Business " and be capped at $100.00 per assessment.

 

11         That it be confirmed that in accordance with Section 496A & 510A of the Act the annual charge for 2015/2016 for stormwater management services on all rateable privately owned developed business strata lots/land and located within the confines of the towns of Nambucca Heads, Valla Beach, Hyland Park, Macksville, Bowraville and Scotts Head is made at an amount equal to twenty five dollars ($25.00) per strata plan land parcel (parent parcel) plus an additional twenty five dollars ($25.00) for each 350 square metres or part of 350 square metres by which the area of the parcel of land exceeds 350 square metres and capped at $100.00 then be charged the greater of five dollars ($5.00) or the relevant proportion of the maximum annual charge that would apply to the land subject to the strata scheme (the ‘relevant proportion’ is the proportion that the unit entitlement of that lot in the scheme bears to the aggregate unit entitlement of the scheme), such charge to have a short title "Stormwater Bus-Strata".

 

12         That a rate of zero point zero zero five five seven four dollars ($0.005574) on the land value of all rateable land in the rating category of “Farmland”, is made for the year 2015/2016, subject to a minimum rate of four hundred and ninety seven dollars ($497.00) per assessment, in accordance with Section 458 of the Act, such rate to apply to all properties categorised as “Farmland”, pursuant to Section 515 of the Act, such rate to a short title of “Farmland” in accordance with Section 543 of the Act.

 

13         That a rate of zero point zero zero five seven zero three dollars ($0.005703) on the land value of all rateable land in the rating category “Residential” is made for the year 2015/2016, subject to a minimum rate of seven hundred and fifty nine dollars ($759.00) per assessment, such rate to apply to all properties categorised as “Residential”, pursuant to Section 516 of the Act, excluding all properties in the sub categories “Town” and “Village/Estates”, such rate to have a separate short title of “Residential Non-Urban”.


 

14         That a rate of zero point zero zero five seven zero three  dollars ($0.005703) on the land value of all rateable land in the rating category “Residential”, sub category “Town” is made for the year 2015/2016, pursuant to Section 516 of the Act, subject to a minimum rate of seven hundred and fifty nine dollars ($759.00) per assessment, such rate to apply to all rateable land located in centres of population described as comprising all properties zoned residential, located in the towns of Nambucca Heads, Hyland Park, Macksville, Bowraville, Scotts Head and Valla Beach and serviced or able to be serviced with water supply, sewerage, or septic tank, such rate to have a separate short title of “Residential Town”.

 

15         That a rate of zero point zero zero five seven zero three dollars ($0.005703) on the land value of all rateable land in the rating category “Residential”, sub-category “Village/Estates” is made for the year 2015/2016, pursuant to Section 516 of the Act, subject to a minimum rate of seven hundred and fifty nine dollars ($759.00) per assessment, such rate to apply to all rateable land located in the villages of Eungai Rail, Eungai Creek, Warrell Creek, Donnellyville, Taylors Arm – Upper and Lower, and all Estates comprising all residential land within the rural sector with a residential building entitlement and within a subdivision both past and present which results in the concentration of holdings to create an estate of two or more lots, all ribbon development residential lots along rural roads contiguous to developed estates and villages and all ribbon development residential lots along rural roads immediately opposite to developed estates, such rate to have a separate short title “Residential Village/Estates”.

 

16      That a rate of zero point zero zero seven six six five dollars ($0.007665) on the land value of all rateable land in the rating category “Business” is made for the year 2015/2016, subject to a minimum rate of seven hundred and fifty nine dollars ($759.00) per assessment, such rate to apply to all properties  categorised as “Business”, pursuant to Section 518 of the Act, excluding all properties in the sub categories “Caravan Park”, “CBD” and “Industrial Estate”, such rate to have a separate short title of “Business Ordinary”.

 

17      That a rate of zero point zero zero nine two five eight dollars ($0.009258) on the land value of all rateable land in the rating category “Business”, sub category “Caravan Park”, is made for the year 2015/2016,  pursuant to Section 518 of the Act, subject to a minimum rate of seven hundred and fifty nine dollars ($759.00) per assessment, such rate to apply to all rateable properties categorised as Business sub category “Caravan Park” and have a short title of “Business Caravan Park”.

 

18      That a rate of zero point zero one one six seven nine dollars ($0.011679) on the land value of all rateable land in the rating category “Business”, sub category “CBD” is made for the year 2015/2016, pursuant to Section 518 of the Act, subject to a minimum rate of seven hundred and fifty nine dollars ($759.00) per assessment, such rate to apply to all rateable properties categorised as “Business”, sub category “CBD” in the towns of Nambucca Heads, Bowraville, Macksville, Valla Beach, and Scotts Head and such rate to have a separate short title of “Business CBD”.

 

19      That a rate of zero point zero zero seven two six six dollars ($0.007266) on the land value of all rateable land in the rating category “Business”, sub category “Industrial Estate” is made for the year 2015/2016, pursuant to Section 518 of the Act, subject to a minimum rate of seven hundred and fifty nine dollars ($759.00) per assessment, such rate to apply to all rateable properties categorised as “Business”, sub category “Industrial Estate” in the towns of Nambucca Heads and Macksville, and such rate to have a short title of “Business Industrial”.

 

20      That a special rate, pursuant to Section 495 of the Act, consisting of a base amount of twenty dollars and twenty cents ($20.20) per assessment, with a short title of “Environmental Base” and an ad-valorem amount of zero point zero zero zero one three nine five dollars ($0.0001395) on the land value of all rateable land in Council’s area (refer Section 538 of the Act), with a short title of “Environmental Levy”, is made for the year 2015/2016. The base amount will produce approximately forty nine point seven six percent  (49.76%) of the total amount payable by the levying of the special rate so as to comply with Section 500 of the Act.

 

21      That a charge of ninety four dollars ($94.00) for the annual fee for Category 1 (Low Risk) Sewer Trade Waste, is made for the year 2015/2016 pursuant to Section 501 of the Act and have a short title “Trade Waste Fee–Cat 1”.

 

22      That a charge of ninety four dollars ($94.00) for the annual fee for Category 1A (Low Risk) Sewer Trade Waste, is made for the year 2015/2016 pursuant to Section 501 of the Act and have a short title “Trade Waste Fee–Cat 1A”, with an additional charge of one dollar and seventy seven cents ($1.77) per kilolitre for Non-Conforming Usage (if required pre-treatment is not installed or properly maintained), is made for the 2015/2016 pursuant to Section 502 of the Act.

 

23      That a charge of one hundred and fifty six dollars ($156.00) for the annual fee for Category 2 (Medium Risk) Sewer Trade Waste, is made for the year 2015/2016 pursuant to Section 501 of the Act and have a short title “Trade Waste Fee–Cat 2”, with a usage charge of one dollar and seventy seven cents ($1.77) per kilolitre or fifteen dollars and eighty two cents ($15.82) per kilolitre for Non-Conforming Usage (if required pre-treatment is not installed or properly maintained), is made for the 2015/2016 pursuant to Section 502 of the Act.

 

24      That a charge of one hundred and fifty six dollars ($156.00) for the annual fee for Category 3 (High Risk) Sewer Trade Waste, is made for the year 2015/2016 pursuant to Section 501 of the Act and have a short title “Trade Waste Fee–Cat 3”, with an additional charge of one dollar and thirteen cents ($1.13) per kilogram for Excess Mass, is made for the year 2015/2016 pursuant to Section 502 of the Act.

 

25      That a charge of ninety four dollars ($94.00) for the annual fee for Category 4 Septic tank Effluent Disposal Sewer Trade Waste, is made for the year 2015/2016 pursuant to Section 501 of the Act and have a short title “Trade Waste Fee–Cat 4”.

 

26      That a charge of ninety four dollars ($94.00) for the annual fee for Category 4 Caravan Dump Effluent Disposal, is made for the year 2015/2016 pursuant to Section 501 of the Act and have a short title “Trade Waste Fee–Cat 4”, with a charge of one hundred and thirty seven dollars ($137.00) for Disposal at Treatment Works with a maximum of 2,500L, disposals over 2,500L will have an additional charge of fifty dollars ($50.00) per 1000L, is made for the year 2015/2016 pursuant to Section 501 of the Act.

 

27      That an interest rate of 8.5% per annum is set for the year 2015/2016, pursuant to Section 566 of the Act, and be charged on overdue rates and charges.

 

 

OPTIONS:

 

Council may resolve to adopt the Rates and Charges without applying the 5.0% rate increase or to adopt the Rates and Charges with a percentage between 0 and 5.0%.

 

 

DISCUSSION:

 

IPART has approved a rate increase in general income of 5.0%.

 

Council's minimum rate for Residential and Business categories has been increased by $18.00 to $759.00 (being the rate peg increase of 2.4%).

Council’s minimum rate for the Farmland category has been increased by $12.00 to $497.00 (being the rate peg increase of 2.4% and determined by IPART vide, Regulation Clause 126).

 

Previous Recommendation 7 – Deleted. This detailed a charge under Section 502 for a weekly waste collection service for non-rateable properties. The Waste Management Officer advises that there is no provision in the Coffs Coast Waste contract for such a service and it was omitted from this year’s Fees and Charges.

 

Recommendations 4, and 6 have been amended to include Non Rateable properties receiving a residential or commercial waste collection service.

 

Recommendations 3, 5, and 7 have been amended to include vacant Non Rateable properties and Non Rateable properties that are not vacant but do not receive a waste collection service.

 

 

CONSULTATION:

 

General Manager

Assistant General Manager Corporate Services

Manager Financial Services

Waste Management Officer

Rates Officer

Division of Local Government

 

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

This report has no environmental impact.

 


Social

 

This report has no social impact.

 

Economic

 

There is no economic impact.

 

Risk

 

There is no risk to Council.

 

 

FINANCIAL IMPLICATIONS:

 

There are no additional financial implications to the adopted budget.

 

 

 

Attachments:

There are no attachments for this report.  


Ordinary Council Meeting                                                                                                    25 June 2015

Assistant General Manager Corporate Services Report

ITEM 10.5    SF2025            250615         Fit For the Future Submission Update

 

AUTHOR/ENQUIRIES:    Scott Norman, Assistant General Manager Corporate Services         

 

Summary:

 

This report provides an update on the preparation of Council’s Fit For the Future Council Improvement Proposal and recommends Council received the completed proposal as part of a verbal presentation within the meeting.

 

 

Recommendation:

 

That Council note the report and allow a verbal presentation on Council’s Fit for the Future Improvement Proposal.

 

 

OPTIONS:

 

This report is for information and seeks feedback from Councillors.  Alternate suggestions are encouraged.

 

 

DISCUSSION:

 

The final draft of Council’s Fit For the Future Improvement Proposal is still being completed at the time of writing this report.  The working draft is attached for Council’s information.  The completed document will be provided as soon as it is finished.

 

It is requested that Council allow a verbal presentation to the meeting on the proposal.

 

CONSULTATION:

 

General Manager, Manager of Finance.

 

SUSTAINABILITY ASSESSMENT and FINANCIAL IMPLICATIONS:

 

The Fit for the Future Program seeks to initiate financial sustainability reforms across New South Wales local government.

 

 

Attachments:

1

18564/2015 - Fit for the Future Submission - Short Version Council Report

 

  


Ordinary Council Meeting - 25 June 2015

Fit For the Future Submission Update

 

Description: FitForFuture

Template 2

 

Council Improvement Proposal

 

(Existing structure)

 
 



Getting started . . .

 


Before you commence this template, please check the following:

 

·      You have chosen the correct template – only councils that have sufficient scale and capacity and who do not intend to merge or become a Rural Council should complete this template (Template 2)

 

·      You have obtained a copy of the guidance material for Template 2 and instructions for completing each question

 

·      You have completed the self-assessment of your current performance, using the tool provided

 

·      You have completed any supporting material and prepared attachments for your Proposal as PDF documents. Please limit the number of attachments and ensure they are directly relevant to your proposal. Specific references to the relevant page and/or paragraph in the attachments should also be included.

 

·      Your Proposal has been endorsed by a resolution of your Council.

 

 

Text Box: 1Council name:

Nambucca Shire Council

Date of Council resolution endorsing this submission:

To Be Advised

 

1.1  Executive Summary

Provide a summary (up to 500 words) of the key points of your Proposal including current performance, the issues facing your council and your planned improvement strategies and outcomes.

Nambucca Shire Council agrees with the Independent Review Panels recommendation on Scale and Capacity.  This improvement proposal is according based on template two.  In this proposal the current Local Government Area is retained, ongoing reforms continue to improve performance against  Fit For The Future (FFTF) Benchmarks and Council improves regional collaboration through participation in a North Coast Joint Organisation.

 

Past performance against FFTF benchmark has Council meeting only 2 from 7 indicators.  This proposal demonstrates Council is on target to meet 6 of the 7 by 2020, including the key benchmarks Operating Performance Ratio and Own Source Revenue Ratio.

 

Nambucca is well placed to turn performance around and is already benefiting from recent key initiatives such as reviewing services levels when making asset renewal decisions ; continued improvement of assets management practices and implementing operational reforms that reduce costs in real terms.  Council has also benefited from a series of special rate variation with the additional income being used to fund infrastructure renewals, typically funding a borrowing program.  These programs also have benefited from LIRS interest subsidies when they have been available.  Council has current SRV approved for the period ending June 2017, with the additional revenue being committed to road and bridge renewal (200 words)

Summary to be completed


Text Box: 11.2 Scale and Capacity

 

Does your council have the scale and capacity broadly consistent with the recommendations of the Independent Local Government Review Panel?

 

(ie, the Panel did not recommend your council needed to merge or become a Rural Council).

 

Yes               

 

Supporting Commentary

 

Council has considered the Independent Local Government Review Panel’s recommendations and has agreed that Nambucca Shire Council has the scale and capacity consistent with their recommendations.  The following Council resolutions relate.

 

27 March 2014

ITEM 9.2      SF894                270314      "Revitalising Local Government" - Final Report of the NSW Independent Local Government Review Panel October 2013

159/14 RESOLVED:        (Finlayson/Ainsworth)

 

That Council advise the Division of Local Government that it is broadly supportive of the recommendations of the Final Report of the NSW Independent Local Government Review Panel subject to the member councils of the North Coast Joint Organisation having input into the regional functions to be allocated to the Joint Organisation.

 Letter trim 5981/2014

27 November 2014

ITEM 10.1    SF2025              271114      Fit For the Future - Scale and Capacity

568/14 RESOLVED:        (Ainsworth/Smyth)

 

That Council resolves that Nambucca Shire does have the scale and capacity broadly consistent with the recommendation of the Independent Local Government Review Panel and will prepare Council’s Fit for the Future submission on the basis of the existing Shire boundaries and membership of the proposed North Coast

Nambucca Shire Council was also part of application to participate in a Pilot North Coast Joint Organisation as recommended by the panel.

25 September 2014

ITEM 9.13    SF894                250914      "Fit for the Future Reforms" - Proposed Pilot North Coast Joint Organisation

466/14 RESOLVED:        (Ainsworth/Finlayson)

 

That Council agree to participate in a pilot North Coast Joint Organisation and note its preference for the pilot Joint Organisation to have as its priority the improvement of the financial sustainability of its constituent councils.

 


The objectives of this pilot were detailed as:

1     Regional alliance of local government water utilities at a high level focussing on service and infrastructure planning as opposed to service delivery.

 

2     Strategic regional and sub-regional planning framework.

 

3     Strategic waste management

 

4     Develop a framework to ensure a consistent basis to evaluate the potential for shared service provision. Review activities for the delivery of ‘back office’ services.

 

If No, please indicate why you are not proceeding with a voluntary merger or creation of a Rural Council as recommended by the Independent Panel and demonstrate how your council has scale and capacity (up to 500 words).

Not Applicable.


Text Box: 22. Your council’s current position

 

2.1 About your local government area

 

Explain the key characteristics of your local government area, your community’s goals and priorities and the challenges you face in the future (up to 500 words).

 

You should reference your Community Strategic Plan and any relevant demographic data for this section.

 

 

Nambucca Shire Local Government Area totals 1,491 square kilometres, located on the mid north coast of New South Wales.  It is a diverse and unique place with stunning coastal scenery and picturesque hinterland located on the eastern edge of the New England Plateau.  The Shire has three main towns - Nambucca Heads, Macksville and Bowraville - as well as key coastal settlements at Valla Beach and Scotts Head and smaller villages across the Shire. 

 

The Shire’s economic base in terms of number of businesses is led by agriculture, forestry and fishing, with construction and retail businesses being the second and third highest number respectively.

 

Key Demographic of the Nambucca Shire include…..

 

·   Shire population is 19,655 residents.  Approximately one third of these residents live in a rural or non-urban area.

 

·   The population is anticipated to increase to 20,650 in 2031, and 27,923 by 2051.

 

·   A very large proportion of older adults and ageing adults with 32.2% aged 65 years and over and 24.8% aged 50-64 years.  This is consistent with the north coast of NSW being seen as an appealing place to retire.

 

·   A large proportion of people living alone (31.3% of households) and a large proportion of families are couples without children (48.9%), which is consistent with the ageing population.

 

·   Generally a lower income area with 38.16% of households earning less than $600 per week.  This is consistent with older and retired adults.  However, unemployment is also high at 10.7% which suggests there are also lower socio-economic families and individuals in the area.

 

·   A large number of Aboriginal and Torres Strait Islander people (1,359 which represents 7.29% of the population significantly higher than the State average of 2.4%).

 

·    In common with other coastal local government areas, Nambucca Shire has an ageing population, however unlike other equivalent areas it is coupled with a declining birth rate and an outward migration of people aged 20-49 years. 

 

The Nambucca Shire Council Mission statement is                 

 

“That the Nambucca Valley will value and protect its natural environment, maintain its assets and infrastructure and develop opportunities for its people.”

 

The Community Strategic Plan lists 11 key strategic directions to achieve this and Council’s planning and delivery of services reflect these key operational areas.

                                                                                

Nambucca Shire Council commissioned a series of Customer Satisfation Surveys in 2007, 2010 and 2013.  The communitites priorites were consistant over the 9 years and are neatly summarised as……..

 The Nambucca Shire faces number specific challenges in relation to delivering service to the residents on a economically sustainable basis. In summary….

 

41% of the Shire is either National Park or State Forest that yields no rates revenue

National Parks valued at an average farmland valuation and levied at the farmland rate would yield income of $670,899 or 6.8% of the 2015 -16 rate income.

 

State forest valued at an average farmland valuation and levied at the farmland rate would yield income of $724,605 or 7.3% of the 2015-16 rate income.

 

Other Non-Rateable Properties

Crown Land not privately leased, religious organisations, charitable bodies, public benevolent intuitions, local aboriginal land councils and schools

 

399 properties valued at $57,476,151 rates foregone $318,919   or 3.2% of the 2015-16 rate income

 

Caravan and Mobile Home Parks

There are 9 caravan parks and 2 mobile home parks in the LGA.  These are intense centres of population and activity (and therefore significant users of Council services) They are levied modest rates based on land valuation alone.  Permanent park residences represent approximately 6% of dwelling in the Nambucca Shire compared to a NSW average of approximately 1% of dwellings.  If the owners of these homes paid minimum rates the additional income on top of what the Parks currently pay would be $292,767 or 2.9% of the 2015-16 rate income

 

High percentage of residents that qualify for pensioner discount.

Nambucca LGA attracts a large number of retirees and has the largest large proportion of rate assessments that attract the pensioner discount in New South Wales.

 

Last year 2,481 assessments out of a total 9,277 assessments (26.7%) attracted a pensioner discount.  Total rebate was $902,872 with Council being reimbursed $496,579 by the State, net cost to Council $406,293 or 4.1% of 2015-16 rates income. 

 

Low ability to Pay - Generally lower than national average social and economic circumstances.

Generally a lower income area with 38% of households earning less than $600 per week.  This is consistent with older and retired adults.  Unemployment is also consistently higher that the state average.  The combined effect is a lower than average capacity to pay for services.

The compensating factors in the calculation of the Financial Assistance Grant (FAG’s) is acknowledge, however insufficient funds to effect this compensation is also noted. 

High Cost of providing Infrastructure due to topography and climate.

Nambucca is a beautiful part of the world, with unspoilt beaches and lush green hinterland that runs up into the Great Dividing Range.  Unfortunately these advantages also make it an expensive place to build and maintain transport infrastructure.  High rainfall (1300 -1600mm PA) decreases the service life of roads.  The

river valley topography results in roads being constructed in mountainous terrain and a lot bridges.  Nambucca Shire is only 1,491 square KM’s in size with a total road network of 704km but has to maintain 195 bridges or expressed another way, that is on average one bridge for every 3.6KM.  The steep slopes also mean that the roads are susceptible to damage from land slips.  Landslips often happen without warning and can isolate whole communities, timely response results in unplanned expenditure. 

 

Nambucca Shire also has 24km of coastline; typically this is crown land but the Shire’s responsibility to maintain it.  While it is a wonderful asset to the shire, enjoyed by locals and visitors alike, coastal erosion, salt laden air, fragile eco systems and high public demand for facilities make the coastline an inherently expensive strip of land in which to provide and maintain infrastructure.

 

Impending transfer of State Road Assets to Nambucca Shire

 

The Pacific Highway upgrade will see NSW Roads and Maritime Services (RMS) hand to Nambucca Shire 35KM of existing highway converted to local access road, approximately another 30km of newly constructed local access roads and 16 bridges and major culverts.  This represents over a 20% increase in the length of Council’s sealed network.  There will be a one off compensation payment, (the quantum of which RMS has not yet disclosed) but no ongoing support.  This has the potential to be a “game changer” in relation to Nambucca’s effort to maintain a financially sustainable Council into the future.


Text Box: 22.2 Key challenges and opportunities

Strengths

Weaknesses

Long Term Water Supply Secured.

Comparatively low overhead operation.

Established program of reform.

Strong Volunteer base particularly in association with Libraries and Tourist Information Centre.

Large % of the Shire is unrateable land held by the crown

Compulsory contribution to pensioner discount

Once in a lifetime companion animal rego not covering costs

Beach Maintenance – Maintaining an asset not owned by Council

High Rainfall and challenging topography make asset  more expensive to construct and maintain 

Opportunities

Threats

Implementation of operational changes that complement restructure of the Engineering Section.

Continuing reviews of service levels as part of improving asset management systems

Move ownership of halls and Museums to Incorporated Associations.

Text Box: 2Pacific Highway hand over when bypass is complete.

Freezing of FAG’s GrantsText Box: 2


Text Box: 22.3 Performance against the Fit for the Future benchmarks

Sustainability

Measure/

benchmark

2013 / 2014 performance

Achieves FFTF benchmark?

Forecast

2016 / 2017 performance

Achieves FFTF benchmark?

Operating Performance Ratio

(Greater than or equal to break-even average over 3 years)

-17.8%

 

No

-6.9 %

No

Own Source Revenue

Ratio (Greater than 60% average over 3 years)

60.9%

Yes

58.3%

No

Building and Infrastructure Asset Renewal

Ratio (Greater than 100% average over 3 years)

70.3%

No

78.7%

No

 

If the Fit for the Future benchmarks are not being achieved, please indicate why.

Operating Performance Ratio –

Nambucca Shire has a long history of operating deficits; this is reflected in the financial sustainability rating of weak with a negative outlook allocated by Tcorp in 2013.  Recent reported results have been trending further into the negative; this is despite a concerted effort to improve the situation.  The “why” is simply a matter of costs of operations growing at a faster rate than revenues. The  operating position has been a sporadic deficit but in the last three years has settled into a gradual decline with no identified big spikes in costs or big cuts to revenue.  There has been year on year impacts such as the timing of Financial Assistance payments but these have been smoothed out by averaging the benchmark over three years.  The financial difficulties have typically manifested as the inability to fund asset renewals as they are required. The Fit for the Future program has provided an integrated framework in which to turn performance around.  The initiatives to date are listed below to provide context to the strategies proposed to improve the situation.  Modelling these strategies indicates an improving trend and the graph below shows a predicted improvement for the year ended June 2015. 

 

Recent initiative to improve operating performance

Things that have been done

 

Work in Progress

Text Box: 22.3 Performance against the Fit for the Future benchmarks

 

Infrastructure and service management

Measure/

benchmark

2013  /2014 performance

Achieves FFTF benchmark?

Forecast

2016 / 2017 performance

Achieves FFTF benchmark?

Infrastructure Backlog Ratio

(Less than 2%)

9.94%

No

1.12%

Yes

Asset Maintenance Ratio 

(Greater than 100% average over 3 years)

68.9%

No

100.1%

Yes

Debt Service Ratio

(Greater than 0% and less than or equal to 20% average over 3 years)

5.66%

Yes

8.91%

Yes

 

If the Fit for the Future benchmarks are not being achieved, please indicate why.

Infrastructure Backlog Ratio has been on an improving trend.  The methodology used to calculate the backlog ratio has recently been redeveloped in preparation for auditing the of Special Schedule 7.Reporting..  The methodology reflects the work done with the “apples with apples”  asset bench marking project undertaken by the MIDROC Councils.  To be included in backlog, an asset must be delivering a service below an acceptable level, and not be included a future works program for remedial action.  The acceptable level is assessed using a risked based analysis.  Applying the new methodology it is expected the Nambucca Shire will meet the Infrastructure Backlog benchmark at 30 June 2015 and based on modelling of future requirements the target will be met for all years leading to  2017.  The improved methodologies have been applied to vast majority of Transport Assets including all road pavements and surfaces.

 

Asset Maintenance Ratio –has been improving over time as a result of improving maintenance practices and refined calculation techniques.  The published result for the year ended 30 June 2014 was 99% of required maintenance, just under the 100% benchmark.  The moving average of 68% reported above suffers from poorer results in the prior years.  It is expected the ratio will exceed 100% in the year ended June 2015 and this performance will be maintained through to 2017.  It should be noted that Council’s calculation and forecasting of this ratio is still at a rudimentary level and relies heavily on patterns of expenditure, observations and current recorded outstanding maintenance.  

 

Debt Service Ratio is predicted to remain within the benchmark range through to 2017.  Two points of interest are

1.  That Council has been using a strategy of obtaining special rate variations for infrastructure renewal and committing the additional revenue to service borrowing to complete the work.

2.   The debt service ratio calculated on Council’s consolidated position is forecast to be 18.3% in 2017.  This reflects considerable debt that is serviced by Council’s water and sewerage operations.  A large percentage of this debt relates to a recently completed dam that provides greater water security.  While the consolidated position is still within benchmark, it is reasonable to take this into consideration when accessing Council overall position to service debt and exposure to interest rate risk.

Text Box: 22.3 Performance against the Fit for the Future benchmarks

Efficiency

Measure/

benchmark

2013  /2014 performance

Achieves FFTF benchmark?

Forecast

2016 / 2017 performance

Achieves FFTF benchmark?

Real Operating Expenditure per capita

A decrease in Real Operating Expenditure per capita over time

 

$1.14

No

$0.91

 No

 

 

If the Fit for the Future benchmarks are not being achieved, please indicate why.

Despite marking the Efficiency Benchmark as not achieved, Nambucca Shire substantively meets the bench mark both on historic/ actual results and projected future results.  The guidance provided with the self-assessment tool stipulates a continuous fall in real operating expenses per capita over a 5 year period.  Nambucca results trend down but are impacted by one off expenditures.  In the years where the ratio is above trend, the additional spend typically relates to Natural Disaster Relief and Recovery Arrangements (NDRRA) funding being expended to restore damaged assets.

 

Expenditure is discounted to 2009 dollars; future population growth is estimated at a modest 0.8% per year.  This reflects recent population growth but is at the low end of the range for predicted growth.

 

The trend Line for real operating expenses per capita for 5 year period ended June 2014 is down.  Historic actual results do show decline in real terms when 2009-10 ($1.16) is compared to 2013-14 ($1.14), however it is not a consistent decline.  The increase in years 2010-11 and 2011-12 can largely be attributed to large flood restoration program funded from NDRRA.

 

Similarly the trend Line for real operating expenses per capita for 5 year period ended June 2017 is down.  Projected results do show a decline in real terms from 2012 ($1.21) to 2017 at ($0.94).  The rise in expenditure in 2015 again includes substantial NDRRA expenditure.

            

 

 


Text Box: 22.4 Water utility performance

 

NB: This section should only be completed by councils who have direct responsibility for water supply and sewerage management

 

Does your council currently achieve the requirements of the NSW Government Best Practice Management of Water Supply and Sewerage Framework?

 

Yes

 

If NO, please explain the factors that influence your performance against the Framework.

Not Applicable

 

How much is your council’s current (2013/14) water and sewerage infrastructure backlog?

 

Backlog $

Backlog % of WDV

Water Supply Network

$14,040,000

36.7%

Sewerage Network

$25,762,000

35.6%


 

Text Box: 22.4 Water utility performance

 

Identify any significant capital works (>$1m) proposed for your council’s water and sewer operations during the 2016-17  to  2019-20 period and any known grants or external funding to support these works.

 

Capital works

Proposed works

Timeframe

Cost

Grants or external funding

None Identified

 


Text Box: 22.4 Water utility performance

 

Does your council currently manage its water and sewerage operations on at least a break-even basis?

 

Yes

 

If No, please explain the factors that influence your performance.

Not Applicable

 


Text Box: 22.4 Water utility performance

 

Identify some of your council’s strategies to improve the performance of its water and sewer operations in the 2016-17 to 2019-20 period.

 

Improvement strategies

Strategy

Timeframe

Anticipated outcome

1. Upgrade water and sewerage SCADA and telemetry

systems

3-4 years

Roved monitoring and control of water supply and sewerage systems. Enable remote control reducing call outs and increase efficiency of operation.

 


Text Box: 33. How will your council become/remain Fit for the Future?

 

3.1 Sustainability

 

Summarise your council’s key strategies to improve performance against the Sustainability benchmarks in the 2016-20 period, including the outcomes you expect to achieve.

 

Proposed improvements against benchmarks are based on that reviewed the veracity of the information on which the bench mark ratios were calculated.   This has been incorporated into the preparation of the 2015-16 Draft Budget and the review of the Long Term Financial Plan and has given a baseline for modelling improvement strategies.

 

The first priority of the strategy was to meet the Operating Performance benchmark.  This defines the size and operations of the Organisation in the future and give parameters on which to work on improving the remaining ratios.

 

The strategy sees Nambucca meeting five of the seven benchmarks by 2020.  This would include the two threshold benchmarks, Operating Performance Ratio and Own Source Revenue Ratio. 

 

To achieve this a series of three modest special rate variations (SRVs) of approximately 2.5% above rate peg would be required in the years 2017-18, 2018-19 and 2019-20.  Council’s history of small, well target SRVs

 

The strategy assumes holding operating expenses constant in real terms.  This is realistic and is in line with recent performance current trend.  (List recent initiatives  and  ongoing work) 

 

It is possible on-going service reviews could identify further operational savings and these could offset the need for SRVs.  It is also possible that if Council is considered Fit for the Future, it may benefit from a less rigorous SRV approval process or no requirement for a SVR with a restricted range.

 

·   Have to talk about potential dividend payments from water & sewerage

 

 

Explain the key assumptions that underpin your strategies and expected outcomes.

 

For example the key assumptions that drive financial performance including the use of SRVs, growth in rates, wage increases, Financial Assistance or other operating grants, depreciation, and other essential or major expense or revenue items.

 

Key assumptions – To be confirmed when Indexed LTFP is produced.

·   Average Population growth 1 % PA

·   Average growth in additional rateable assessments   0.2%

·   Discount Rate to calculate real costs 3% based on top end of inflation range and assumed rate peg in forward planning

·   Future Rate Peg  3% PA

·   Services level held constant

·   Operational costs held at least constant in real terms – this is on current trend.

·   Future borrow rate 5%  Most of Council’s current debt is at fixed rate for the term.

·   Future investment returns 4%

 


Text Box: 33.1 Sustainability

 

Outline your strategies and outcomes in the table below.

 

3.1 Sustainability

Objective

Strategies

Key milestones

Outcome

Impact on other measures

1.

a)

b)

c)

 


Text Box: 33.2 Infrastructure and Service Management

 

 

Summarise your council’s key strategies to improve performance against the Infrastructure and service management benchmarks in the 2016-20 period, including the outcomes you expect to achieve.

 

 

 

Explain the key assumptions that underpin your strategies and expected outcomes.

 

 


Text Box: 3Text Box: 33.2 Infrastructure and Service Management

 

Outline your strategies and outcomes in the table below.

 

3.2 Infrastructure and service management

Objective

Strategies

Key milestones

Outcome

Impact on other measures

1.

a)

b)

c)


 

Text Box: 33.3 Efficiency

 

Summarise your council’s key strategies to improve performance against the Efficiency measures in the 2016-20 period, including the outcomes you expect to achieve.

 

 

 

Explain the key assumptions that underpin your strategies and expected outcomes.

 Key assumptions – To be confirmed when Indexed LTFP is produced.

·   Average Population growth 1 % PA

·   Average growth in additional rateable assessments   0.2%

·   Discount Rate to calculate real costs 3% based on top end of inflation range and assumed rate peg in forward planning

·   Future Rate Peg  3% PA

·   Services level held constant

·   Operational costs held at least constant in real terms – this is on current trend.

·   Future borrow rate 5%  Most of Council’s current debt is at fixed rate for the term.

Future investment returns 4%


Text Box: 33.3 Efficiency

 

Outline your strategies and outcomes in the table below.

 

3.3 Efficiency

Objective

Strategies

Key milestones

Outcome

Impact on other measures

1.

a)

b)

c)


 

Text Box: 33.4 Improvement Action Plan

 

Summarise the key improvement actions that will be achieved in the first year of your plan.

 

Action plan

Actions

Milestones

1.

* Please attach detailed action plan and supporting financial modelling

 

Outline the process that underpinned the development of your Action Plan.

 

For example, who was involved, any external assistance, consultation or collaboration, and how the council has reviewed and approved the plan.

 

 


 

Text Box: 33.5 Other actions considered

 

In preparing your Improvement Action Plan, you may have considered other strategies/actions but decided not to adopt them. Please identify what these strategies/actions were and explain why you chose not to pursue them.

 

For example, neighbouring council did not want to pursue a merger, unable to increase rates or increase borrowing, changes in policy or service standards.

 


Ordinary Council Meeting - 25 June 2015

Fit For the Future Submission Update

 

4. How will your plan improve performance?

Text Box: 4 


4.1  Expected improvement in performance

 

Measure/

benchmark

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

Achieves FFTF benchmark?

Operating Performance Ratio

(Greater than or equal to break-even average over 3 years)

 

 

 

Yes/No

 

Own Source Revenue

Ratio (Greater than 60% average over 3 years)

 

Yes/No

Building and Infrastructure Asset Renewal

Ratio (Greater than100% average over 3 years)

 

Yes/No

Infrastructure Backlog Ratio

(Greater than 2%)

 

Yes/No

Asset Maintenance Ratio 

(Greater than 100% average over 3 years)

 

Yes/No

Debt Service Ratio

(Greater than 0% and less than or equal to 20% average over 3 years)

 

Yes/No

Real Operating Expenditure per capita

A decrease in Real Operating Expenditure per capita over time

 

Yes/No


Ordinary Council Meeting - 25 June 2015

Fit For the Future Submission Update

 

4.1 Expected improvement in performance

Text Box: 4 


If, after implementing your plan, your council may still not achieve all of the Fit for the Future benchmarks, please explain the likely reasons why.

 

 

For example, historical constraints, trade-offs between criteria, longer time required.


 

Text Box: 55. Putting your plan into action

 

How will your council implement your Improvement Action Plan?

 

For example, who is responsible, how the council will monitor and report progress against achieving the key strategies listed under Section 3.