Council MEETING

Notice of Extraordinary Meeting

Wednesday, 28 May 2014

 

BUSINESS

1.       Apologies

2.       Disclosures of Interest

3        Council Reports 

The Quorum for the meeting is 7


Extraordinary Council Meeting

Summary of Items

Wednesday, 28 May 2014

 

Council Reports

CCL146-14       Quarterly Financial Review - March 2014 (13/847)

(Report by Manager Finance, Mrs C Long).................................................................. 2

CCL147-14       March Quarterly Review - Delivery Program 2013-2017 and Operational Plan 2013-2014 (12/2054)

(Report by Manager Corporate Planning, Mr  E Mishra)............................................ 4

CCL148-14       Delivery Program 2014-2018 and Operational Plan 2014-2015 (14/413)

(Report by Manager Corporate Planning, Mr  E Mishra)............................................ 6   

 


Hurstville City Council – Extraordinary Council Meeting Wednesday, 28 May 2014

AGENDA

1.      Apologies 

2.      Disclosure of Interest


Hurstville City Council – Extraordinary Council Meeting Wednesday, 28 May 2014

3.      Council Reports

CCL146-14        Quarterly Financial Review - March 2014 

Report Author/s

Manager Finance, Mrs C Long

File

13/847

Previous Reports Referenced

No

Community Strategic Plan Pillar

Civic Leadership

Existing Policy?

Yes

New Policy Required?

No

Financial Implications

Outside Budget

Reason for Report

For Approval

 

EXECUTIVE SUMMARY

This report is a review of the third quarter's financial performance against the 2013-14 Current Budget and recommends approval of budget variances in line with the revised annual forecast.

 

AUTHOR RECOMMENDATION

THAT the report in relation to the March 2014 Quarterly Financial Review be received and noted.

 

THAT Council approves funding for projects as detailed in the report from Property Asset Reserve ($165,853), Domestic Waste Reserve ($16,850), CBD Masterplan Reserve ($19,010) and Section 94 Open Space ($1,072).

 

FURTHER THAT the recommended budget changes as shown in the Revised Full Year Forecast be approved.

 

REPORT DETAIL

Clause 203 of the Local Government (General) Regulation 2005 requires that a quarterly budget review be considered by Council that shows current estimates for income and expenditure for the year, indicates whether Council’s financial position is satisfactory and makes recommendations for remedial action where needed.

 

Quarterly Budget Review Statements attached to this report provide a comprehensive high level review of Council’s financial position at 31 March 2014, in accordance with requirements developed by the Division of Local Government that will assist Councils in meeting their obligations as set out in legislation.

 

This quarterly review forecasts an improvement of $2.524 million in the Operating Result After Capital Amounts to a surplus of $3.659 million.  Council's Cash Budget has increased by $1.952 million to a surplus of $1.936 million.

 

Included in the variance table (see Appendix 1) are projects listed below which require funding from various reserves:

·    Hurstville Aquatic Centre Expansion  -  $165,853 -  Property Asset Reserve

·    Leachate Treatment at Golf Course - $16,850 – Domestic Waste Reserve

·    Acquisition of 27 Wright St, Hurstville - $1,072 – Section 94 Open Space

·    Pedestrian Access Link, Hurstville - $19,010 – CBD Masterplan Reserve

 

The following table summarises the March Quarterly Review Full Year Forecast and compares it to the Current Forecast (which includes December Quarterly Review and resolutions of Council since 5 March 2014).

 

Budget Summary -  March 2014 Quarterly Review

2013/14 Adopted Budget

Parameter

2013/14 Current Forecast

Mar 2014 Qtr Rev Forecast

Variance

 

 

 

 

 

64,494

Operating Income and Grants

66,438

66,505

67

3,835

Capital Grants & Contributions

3,400

3,521

121

653

Net Income from Sale of Assets

957

2,337

1,381

68,982

Total Income

70,795

72,363

1,569

(68,974)

Operating Expenses

(69,660)

(68,704)

956

8

Operating Result - Surplus / (Deficit)

1,135

3,659

2,524

(11,504)

Capital Expenditure

(13,228)

(12,275)

953

(1,000)

Borrowing Proceeds / (Repayments)

(1,000)

(1,000)

0

11,266

Depreciation & Revaluation of Investment Properties (included in Operating Expenses)

10,464

10,491

27

(1,230)

Annual Cash Generation / (Application)

(2,629)

876

3,505

2,491

Net Movement From/(To) Reserves & Written Down Value Adjustments

2,614

1,061

(1,553)

1,261

Cash Budget Surplus / (Deficit)

(16)

1,936

1,952

 

 

APPENDICES

Appendix View1

March 2014 Quarterly Budget Review

 


Hurstville City Council – Extraordinary Council Meeting Wednesday, 28 May 2014

CCL147-14        March Quarterly Review - Delivery Program 2013-2017 and Operational Plan 2013-2014 

Report Author/s

Manager Corporate Planning, Mr  E Mishra

File

12/2054

Previous Reports Referenced

No

Community Strategic Plan Pillar

Civic Leadership

Existing Policy?

No

New Policy Required?

No

Financial Implications

Within Budget

Reason for Report

For Approval

 

EXECUTIVE SUMMARY

The third quarterly review of performance made against the Delivery Program 2013-2017 & Operational Plan 2013-2014 is submitted for the information of Council and the community.

 

AUTHOR RECOMMENDATION

THAT the report be received and noted.

 

FURTHER THAT the Third Quarter Progress Report be published by posting it on Council's website.

 

REPORT DETAIL

The Local Government Act (1993) requires Councils to prepare and adopt a 4-year Delivery Program and an annual Operational Plan. Further regular reports are to be presented to Council identifying progress against the Delivery Program and the Operational Plan.

 

The Hurstville City Council 4-year Delivery Program 2013-2017 & Operational Plan 2013-14, as a consolidated document, was adopted on 29 May 2013 (CCL148-13). The Delivery Program & Operational Plan is designed to steer the work program over the next four years and to identify specific initiatives to be implemented. The Third Quarter Progress Report against the Delivery Program & Operational Plan is attached.

 

Following the Quarterly Progress Review, the revised 2013-14 full-year forecast is for an improved Operating Surplus of $2,524,000. Council’s Cash Budget surplus has improved by $1,952,000 from the previous forecast. The Draft 2014-15 Budget and Schedule of Fees & Charges were prepared and approved by Council for public exhibition and comment. For details please see the Quarterly Financial Review – March 2014 report, also being presented at this Council meeting (28 May 2014).

 

Significant achievements over the third quarter include:

·    Under the 2013-14 Infrastructure Plus program:

o Footpath repairs completed including Emily Street, Forest Road (near Croydon Road), Ocean Street, Roberts Avenue, Henry Lawson Drive (near Belmore Road), Belmore Road (various locations), 11-17 Romilly Street, 2-6 Thurlow Street and 1052 and 1172 Forest Road. Over the quarter, 1708 square metres of paving, 208 trip stops and several pram ramps were completed;

o Road repair and resurfacing completed in Dawn Place, Peakhurst; Green Place, Peakhurst; Akoonah Place, Peakhurst Heights; Warrawee Place, Beverly Hills and Oatley Park Avenue, Oatley. Resheeting was completed for Akoonah Place, Green Place and Dawn Street;

o Road repairs and asphalting works completed in Broadarrow Road (between Romilly Street and Bonds Road), Romilly Street and Bonds Road (kerb lane towards Forest Road on one side). Kerb and gutter repairs completed on Bonds Road in conjunction with the asphalt works;

o Topdressing completed at Gannons Park 1 and 2, Peakhurst Park 1, Peakhurst Park League, Oatley Park Oval and Olds Park Netball Courts. Resurfacing completed on Riverwood Park 3, Gannons Park 5 and Olds Park Soccer Field. Cricket wickets completed at Beatty Street Reserve, Peakhurst Park and Thorpe Park;

o Riverwood Commercial Centre upgrade completed including paving, tree planting and street furniture;

o Mortdale Memorial Park Rotunda refurbishment, Oatley Park amenities and Hurstville City Library amenities completed;

·    Under the 2013-14 Revenue Works program:

o New footpaths constructed in Whitegates Avenue, Peakhurst Heights (from Pindari Road to Lorraine Street - including reconstruction of kerb and gutter in front of the park); Trafalgar Street, Peakhurst (from Jacques Avenue to Peakhurst Park); Ponyara Road, Beverly Hills (Pallamana Parade to Kooemba Road); Myall Street, Oatley (Mulga Road to Wonoona Parade West), Waratah Street, Oatley (Mulga Road to Wonoona Parade West), and Waratah Street, Oatley (Wonoona Parade West to Boundary Road; and Ogilvy Street, Peakhurst (No 51 to Evans Street).

·    More than 50,000 people celebrated the 2014 Hurstville Lunar New Year Street Festival. The event attracted approximately $100,000 in sponsorship.

·    More than 5,000 people attended the 2014 Australia Day Festival at Oatley Park. The event attracted approximately $11,000 in sponsorship. Ninety people also received their Australian citizenship on the day.

·    Hosted more than 30 events to celebrate Seniors Week in March 2014.

 

 

APPENDICES

Appendix View1

Third Quarter Progress Report against 2013-17 Delivery Program

 


Hurstville City Council – Extraordinary Council Meeting Wednesday, 28 May 2014

CCL148-14        Delivery Program 2014-2018 and Operational Plan 2014-2015 

Report Author/s

Manager Corporate Planning, Mr  E Mishra

File

14/413

Previous Reports Referenced

No

Community Strategic Plan Pillar

Civic Leadership

Existing Policy?

Yes

New Policy Required?

No

Financial Implications

Within Budget

Reason for Report

For Approval

 

EXECUTIVE SUMMARY

In accordance with Section 404 and 405 of the Local Government Act 1993, Council's Draft Delivery Program 2014-18 & Operational Plan 2014-15 and Draft Schedule of Fees & Charges 2014-15 were prepared and placed on public exhibition from 17 April to 16 May 2014. After considering all submissions, Council is required to adopt the Delivery Program 2014-18 & Operational Plan 2014-15 and Schedule of Fees & Charges 2014-15 so that the documents come into effect from 1 July 2014.

 

AUTHOR RECOMMENDATION

THAT Council adopt the revised Delivery Program 2014-18 & Operational Plan 2014-15 (incorporating the Budget, Capital Works and Asset Replacement Schedule) and Fees & Charges for 2014-2015.

 

THAT an ordinary rate of 0.229539 cents in the dollar on land value of all rateable land categorised as Residential in the Council area to be made for the period of 1 July 2014 to 30 June 2015.

 

THAT an ordinary rate of 0.489493 cents in the dollar on land value of all rateable land categorised as Business in the Council area to be made for the period of 1 July 2014 to 30 June 2015.

 

THAT the minimum ordinary rate for both Residential and Business land be set at $513.54 for the period of 1 July 2014 to 30 June 2015.

 

THAT a special rate of 0.072097 cents in the dollar on land value of all rateable land categorised as Residential or Business known as Hurstville Town Improvement, in the Council area as described in the Government Gazette No. 119, 8 December 1989, to be made for the period of 1 July 2014 to 30 June 2015.

 

THAT a special rate of 0.082478 cents in the dollar on land value of all rateable land categorised as Residential or Business known as Mortdale Town Improvement, in the Council area as described in the Government Gazette No. 119 (8 December 1989) to be made for the period of 1 July 2014 to 30 June 2015.

 

THAT a special rate of 0.087644 cents in the dollar on land value of all rateable land categorised as Residential or Business known as Riverwood Town Improvement, in the Council area as described in the Government Gazette No. 141 (9 November 1990) to be made for the period of 1 July 2014 to 30 June 2015.

 

THAT Council grants eligible pensioners the prescribed mandatory rebate and maintain the current level of the voluntary pensioner rebates for the year commencing 1 July 2014 and ending 30 June 2015 as outlined in the report.

 

FURTHER THAT Council notes that three public submissions were received in relation to the Delivery Program 2014-18 & Operational Plan 2014-15.

 

REPORT DETAIL

Background

Each Local Government Area in NSW is required to have a Community Strategic Plan developed and endorsed by Council under Section 402, No 30 of the Local Government Act 1993.  The Hurstville Community Strategic Plan 2021 was developed after extensive community engagement including statistically validated surveys, and adopted by Council together with Resourcing Strategy on 22 June 2011.  The Community Strategic Plan established objectives together with actions for their achievement.

 

Council is also required to have a 4-Year Delivery Program detailing the principal activities it will undertake to achieve the objectives established in the Community Strategic Plan under Sections 404 and 405 of the Local Government Act 1993.  The Delivery Program must include a method of assessment to determine the effectiveness of achieving each of its principal activities.

 

Additionally Council is required to have an annual Operational Plan, adopted before the beginning of each financial year, outlining the activities to be undertaken in that year as part of the Delivery Program.  The Operational Plan will include the Statement of Revenue Policy under Clause 201 of Local Government (General) Regulation 2005.  The Operational Plan must include a detailed Budget for the activities to be undertaken in that year.

 

The draft Delivery Program 2014-18 & Operational Plan 2014-15 is complementary to the Hurstville Community Strategic Plan 2021.  It includes Issues and Strategies by Pillar and an assessment of Resourcing requirements.  The work program for the next four years gives effect to the Hurstville Community Strategic Plan 2021, is supported by sound financial management and has been put together with input from Councillors.

 

Council resolved that the Draft Delivery Program 2014-18 & Operational Plan 2014-15 and Draft Schedule of Fees & Charges 2014-15 be placed on public exhibition for thirty days from 17 April 2014.

 

The public exhibition was advertised in the St George and Sutherland Shire Leader on 17 April 2014 and 24 April 2014.  The Draft Delivery Program 2014-18 & Operational Plan 2014-15 and Draft Schedule of Fees & Charges 2014-15 documents were made available at the Civic Centre and at Hurstville & Penshurst Libraries, as well as being posted on Council's website.

 

Following the exhibition period, this report is now presented to the Council advising of submissions received relating to the Draft Delivery Program 2014-18 & Operational Plan 2014-15 and Draft Schedule of Fees & Charges 2014-15.

 

Submissions

Three public submissions were received during the exhibition period relating to the Delivery Program 2014-18 & Operational Plan 2014-15. The issues raised and responses to them are summarised as follows:

(Where changes have been made to the documentation they are noted with the appropriate responses.)

 

STORMWATER MANAGEMENT / DRAINAGE

Program (1 Submission)

The submission queried the status of an initiative which the submitter identified as a “Stormwater Drainage Upgrade Program” from the Draft Delivery Program 2013-17 and Operational Plan 2013-14.

Administrative Comment

The initiative to which the submitter refers was for the implementation of a Stormwater Levy across the Local Government Area, which was not included in the adopted Delivery Program 2013-17 and Operational Plan 2013-14.  The Floodplain Risk Management Study incorporates a review of the Stormwater Drainage capacity for the area and will make recommendations on stormwater upgrade requirements where appropriate.

 

Drainage Inspections (1 Submission)

The submission queries accuracy of the Strategic Asset Management Plan in relation to the number of CCTV inspections undertaken in 2013-2014.

Administrative Comment

The statistics provided in the draft Strategic Asset Management Plan are accurate.  While CCTV inspections were undertaken in 2013-14, the inspections were not numerous enough to affect the overall statistics.

 

Funding (3 submissions)

The submissions relate to funding for stormwater related projects and actions:

·    Insufficient allowance in the plan for stormwater drainage improvements” - The submitter suggests that more budget be allocated.

·    Funding options where stormwater related projects are dependent on availability of funding – the submitter queries why a “stormwater management service charge” is not considered as an option.

·    A reduction in the budget for Drainage / GPT – Cleaning and “the lack of funding provided for upgrades to meet known capacity deficiencies and renewal

Administrative Comment

The reduction in budget for Drainage / GPT Cleaning is the result of a new Contractor being appointed by Council.  A Stormwater Levy was not included in the adopted Delivery Program 2013-17 and Operational Plan 2013-14, as noted in “Program” above.

 

Asset Inventory (1 Submission)

The submission queries the number of listed assets in the stormwater network.

Administrative Comment

The draft Delivery Plan 2014-2018 and Operational Plan 2014-15 has been amended to show the general count of Council assets consistently across the report.

 

Environmental Audits (1 Submission)

The submission seeks information on an internal process and queries why Council is not undertaking the Peakhurst Light Industrial Area audit.

Administrative Comment

The environmental impact of the Peakhurst Light Industrial Area was considered as part of the design of the Peakhurst Light Industrial Stormwater Harvesting Project and the system was designed to treat industrial run off.

 

TREE AND BUSHLAND MANAGEMENT

Tree Preservation (1 Submission)

The submitter states that “it appears Council is planning to spend no money on tree preservation in 2014-15” and the next 3 years based on the budget provided.

Administrative Comment

The Tree Preservation Fund in the Cash & Investments Statement to which the submitter refers shows a net increase of $21K.  This overall increase includes income and expenditure out of the fund.  The balance in the fund is predicted to increase while the planting of trees continues.  Hurstville City Council planted more than 30,000 trees in the 2013-2014 financial year.

 

Tree Maintenance (1 Submission)

The submitter noted an increase in the tree maintenance budget and queried why the budget was increased.

Administrative Comment

The budget has been increased to address rising costs in the total management of trees and the associated work health and safety issues for the community.

 

Policy (1 Submission)

The submitter queries the community consultation process for the development of a Street Tree Management Strategy and the meeting dates of the Tree Management Working Party.

Administrative Comment

The development and implementation of a Street Tree Management Strategy has been scheduled for 2014-2015. Further information will be provided to the community as part of the Strategy’s development, including consultation and submission opportunities.  A schedule of meeting dates of committees do not form part of the Delivery & Operational Plan.

 

Oatley Park Plan of Management (2 submissions)

Two submissions advocated for the implementation of recommendations from the 2004 Oatley Park Plan of Management and the inclusion of these recommendations into the Delivery & Operational Plans.  One of the submissions also queried the budget allocated for the management of Oatley Park.

Administrative Comment

The management and care of Oatley Park is considered a standard operational requirement and as such is not detailed separately within the Delivery & Operational Plans but is managed through the Plan of Management as noted by the submitters.  All parks, including Oatley and Gannons, are funded from the same operational budget.  Council recognises the significance of Oatley Park, for instance noting in Section 4.2 City Profile “Hurstville also contains one of the largest native bush reserves in the St George region, Oatley Park”.

 

WATER QUALITY (1 Submission)

The submitter asked 10 questions in relation to the management of water quality, management of sediment and associated water quality projects. 

Administrative Comment

In relation to water quality, Council regularly checks sediment build-up in the sedimentation ponds.  The level of the sediment within the sediment ponds at Lime Kiln Bay was raised at a recent Community Meeting and is being addressed by Council Officers at the time of writing this report.  With regard to the frequency of water quality reporting, a number of the agencies which supply Council with data do so annually, therefore the reports are provided to the community annually or are provided directly by that agency to the public in real time.  Council Officers also monitor environmental water quality parameters at key Council locations and have aligned the timing of internal reporting with the other data and reports provided.

 

ENVIRONMENTAL COMPLIANCE (1 Submission)

The submitter queries the budget allocation and the number of staff employed in food premises inspections and environmental compliance.

Administrative Comment

The exact number and allocation of staff employed by Council to perform a task such as inspections does not form part of the Draft Delivery Program 2014-18 & Operational Plan 2014-15.  Staff resources are allocated appropriately to address priorities.  Similarly, the budget allocation for environmental compliance is also responsive to the needs across the area and expenditure ‘break up’ varies in response to the year’s activities.  Food Premises Inspections statistics are reported publicly each quarter in a report to Council.

 

OATLEY AGED CARE FACILITY (1 Submission)

The submission asserts that the location of the proposed Aged Care Facility (River Road Oatley) is within the Myles Dunphy Reserve and queries whether a developer has been selected for the site, their qualifications and the selection process.

Administrative Comment

The Myles Dunphy Reserve and Wetland Plan of Management, adopted by Council on 20 March 2013, clearly shows the River Road site as being outside the reserve.  With regard to the potential future use of the site, all relevant town planning and property development steps will be undertaken according to legislative requirements, with decisions referred to Council when necessary.

 

CIVIC LEADERSHIP (1 Submission)

The submitter makes comment in two places in the submission on the service of alcohol “to Councillors and staff prior to the conclusion of all Council meetings on any given day” and queries the allocated budget for the provision of alcohol.

Administrative Comment

The service of beverages prior to meetings is not related to the Draft Delivery Program 2014-18 & Operational Plan 2014-15.  A variety of refreshments are made available on meeting nights and consumption of alcohol is optional.  The submitter will be referred to the Civic Office Expenses Policy, which is now on exhibition.

 

FINANCIAL

Key Performance Indicators (1 Submission)

The submitter makes a number of observations and asks questions on Building and Infrastructure Renewals, and again raises the option of a Stormwater Management Service Charge.  A typographic error is also identified (which has been corrected in the Draft Delivery Program 2014-18 & Operational Plan 2014-15).

Administrative Comment

A Stormwater Management Service Charge was not included in the draft Delivery Program 2014-18 & Operational Plan 2014-15. A Stormwater Management Service Charge is a future funding option for Council to consider.

 

Audit / Ombudsman Program (1 Submission)

The submitter queries the implementation of the annual Audit Plan “as per timelines agreed”.

Administrative Comment

Timelines for the Annual Audit Plan are reviewed by the Audit & Risk Management Committee at each of their meetings and is amended if necessary as resources and priorities dictate. The Audit & Risk Management Committee Minutes are publicly available and reported to Council after each meeting of the Committee, with the most recent being 5 March 2014.

 

Member’s Expenses (Councillors) (1 Submission)

The submitter makes a number of queries in relation to Members’ Expenses, specifically on the decrease of allowance, an overall increase and whether budget has been allocated for “any councillor weekend workshops”.

Administrative Comment

As noted in the Council report CCL139-14 Mayor and Councillor Fees 2014-2015, the allowance amount was less than predicted and as such the budget was subsequently reduced.  The Member Expenses budget has been brought in line after review of actual expenditure in 2012-13 and year-to-date 2013-14. No specific budget has been allocated for Strategic Weekend Workshops.

 

Operating Result (1 Submission)

The submitter queried Council’s plans in improving the Operating Result without “relying on grants and contributions for capital purposes”.

Administrative Comment

As detailed in the Long Term Financial Plan, Council is continually looking at efficiency improvements and revenue opportunities to reduce expenditure and increase income, as well as pursuing its active Property Development program.

 

Capital Budget (1 Submission)

The submitter requested detail on the allocation of proposed expenditure for new stormwater / drainage assets.

Administrative Comment

The Budget is for priority works that will be identified during the year and as such has not been allocated at this stage.

 

CAPITAL WORKS AND ASSET REPLACEMENT SCHEDULE (1 Submission)

The submitter queried the allocation of expenditure for environmental sustainability projects and infrastructure renewal.

Administrative Comment

Allocation of expenditure is based on priority, best practice risk management principles and funding availability.

 

Since the Draft 2014-15 Budget was put on public exhibition further progress has been made against 2013-14 Programs.  They have led to a number of changes which are now reflected in the Delivery Program 2014-2018 & Operational Plan 2014-15 submitted for adoption.  Below is a summary of the key changes to the Budget since public exhibition.

 

2013-14 Projects carried over to 2014-15:

·    Hurstville Library Multipurpose space – $873,520 - funding from Section 94 Library Infrastructure

·    Hurstville Entertainment Centre - replacement of chairs - $65,000 – funding from Working Funds Surplus

·    Lime Kiln Bay Connectivity - $50,000 - funding from Grant

·    WASIP project – Sustainable procurement - $5,000 – funding from Grant

 

Savings in expenditure and additional income identified as part of March Quarterly Review:

·    Rates income - $100,000

·    Mayor and Councillors Fees - $8,000

 

Above changes are reflected in the variance column in the table below:

 

Budget on Exhibition

2014-15

$'000

Budget for Adoption

2014-15

$'000

Variance

$'000

Operating Income

$67,054

$67,154

$100

Net Income from Sale of Assets

$113

$113

$0

Capital Grants and Contributions

$13,828

$13,828

$0

Total Income

$80,995

$81,095

$100

Operating Expenses

($70,480)

($70,477)

$3

Operating Result - Surplus / (Deficit)

$10,515

$10,618

$103

Capital Expenditure

($14,817)

($15,805)

($989)

Borrowing Repayments

($1,000)

($1,000)

$0

Depreciation (included in Operating Expenses above)

$11,113

$11,113

$0

Annual Cash Generation / (Application)

$5,810

$4,925

($886)

Nett Movement from/(to) Reserves and Asset Revaluations

($5,718)

($4,790)

$929

Cash Budget - Surplus / (Deficit)

$92

$135

$43

 

 

APPENDICES

Appendix View1

2014-18 Delivery Program