AGENDA AND BUSINESS PAPERS Oberon Council Finance ... Finance... · (AMP), together known as a Resourcing Strategy. Moved: Morgan Second: Doney That: 1. Council place the Draft Operational

137-139 Oberon StreetPO Box 84Oberon NSW 2787

Telephone: (02) 6329 8100Fax: (02) 6329 8142Email: [email protected]

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AGENDA AND BUSINESS PAPERS

Oberon Council Finance Committee Meeting25 October 2016

Commencing 5.30pmat the Oberon Council Chambers

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Oberon Council - Agenda and Business Papers – Finance Committee Meeting – 25 Oct 2016

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Agenda Items page1. OPENING OF MEETING & WELCOME TO COUNTRY ............................................... 42. RECORD OF ATTENDANCE ....................................................................................... 43. DECLARATIONS OF INTEREST .................................................................................. 44. CONFIRMATION OF MINUTES.................................................................................... 45. REPORTS ................................................................................................................... 126. CLOSED SESSION / CONFIDENTIAL REPORTS ..................................................... 307. GENERAL BUSINESS ................................................................................................ 308. CLOSURE OF MEETING ............................................................................................ 30

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1. OPENING OF MEETING & WELCOME TO COUNTRYThe Mayor will welcome members and declared the meeting open.

Council acknowledges that this meeting is being held on the traditional lands of the Wiradjuri andGundungurra People, and respects the history and culture of the elders both past and present.

2. RECORD OF ATTENDANCEMembers Mayor Kathy Sajowitz (in the Chair)

Deputy Mayor Kerry GibbonsClr Jill EvansClr Neil FrancisClr Sam LordClr Clive McCarthyClr John Morgan

Staff Gary Wallace, Acting General ManagerChris Schumacher, Works and Engineering DirectorLynette Safranek, Finance and Community Services DirectorSharon Swannell, Executive Coordinator

Apologies Clr Ian Doney

3. DECLARATIONS OF INTERESTFile No: Governance/Councillors/Declarations of Interest

Pecuniary -Non-PecuniarySignificant

-

Non-PecuniaryLess thanSignificant

-

4. CONFIRMATION OF MINUTES

Finance Committee MeetingMinutes of the Finance Committee Meeting held on 31 May 2016 FOLLOW. The minutes wereaccepted by Council at its Ordinary Meeting held on 21 June 2016, resolution number03 210616.

Matters Arising from the Minutes

Nil

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Oberon Council – Confirmed Minutes – Finance Committee Meeting – 31 May 2016

Page 3 of the Minutes of the Finance Committee Meeting held on Tues 31 May 2016.

___________________________ ____________________________General Manager Mayor

1. OPENING OF MEETING & WELCOME TO COUNTRYThe Deputy Mayor welcomed members and declared the meeting open at 7.19pm.

Council acknowledges that this meeting is being held on the traditional lands of the Wiradjuri andGundungurra People, and respects the history and culture of the elders both past and present.

2. RECORD OF ATTENDANCEMembers Mayor Kathy Sajowitz (joined the meeting at 8.19pm and assumed the Chair)

Deputy Mayor Kerry Gibbons (in the Chair)Clr Ian DoneyClr Jill EvansClr Neil FrancisClr Sam LordClr Clive McCarthyClr John Morgan

Staff Gary Wallace, Acting General Manager (joined the meeting at 8.19pm)Lynette Safranek, Finance and Community Services DirectorChris Schumacher, Works and Engineering DirectorSharon Swannell, Executive Coordinator

Apologies Nil

3. DECLARATIONS OF INTERESTFile No: Governance/Councillors/Declarations of InterestPecuniary - NilNon-PecuniarySignificant

- Nil

Non-PecuniaryLess thanSignificant

- Nil

4. CONFIRMATION OF MINUTESFinance Committee MeetingThe minutes were accepted by Council at its Ordinary Meeting held on 17 November 2015,resolution number 04 171115.

Matters Arising from the Minutes

Nil

5. MAYORAL MINUTEA late Mayoral Minute will be tabled at the end of the meeting.

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6. REPORTS06.01 QUARTERLY BUDGET REVIEW STATEMENT – JAN TO MAR 2016File No: Governance/Meetings/Finance Committee/May 2016Author: Lynette Safranek, Finance & Community Services Director

SummaryThe Quarterly Budget Review Statement (QBRS) is presented with variations shown for incomeand expenditure for the period from 1 January to 31 March 2016.

Moved: FrancisSecond: Doney

That the Quarterly Budget Review Statements for the period ending 31 March 2016 be received asinformation.

Carried 08 310516

06.02 OBERON 2025 COMMUNITY STRATEGIC PLAN & DRAFT 2016/17OPERATIONAL PLAN

File No: Governance/Integrated Planning & Reporting/Community Strategic PlanAuthor: Gary Wallace, Acting General Manager

SummaryThe Oberon 2025 Community Strategic Plan (CSP) was development and endorsed in 2012. TheCommunity Strategic Plan sets out the long term aspirations of the Oberon Local Government Areauntil 2025. It reflects where we want to be in the future and is the key reference point for decisionmaking during this period. This plan has been updated annually since 2012.

This report outlines the 2016/17 Draft Operational Plan based on the actions set out in our currentCSP. The core documents that form the CSP are a 4 year Delivery Program a 10 year Long TermFinancial Plan (LTFP), a Workforce Management Plan (WMP) and Asset Management Plan(AMP), together known as a Resourcing Strategy.

Moved: MorganSecond: Doney

That:

1. Council place the Draft Operational Plan 2016/17 on Public Exhibition together with the DraftDelivery Program 2016/2017 to 2019/2020.

2. The period of Public Exhibition be from Wednesday 1 June 2016 to Tuesday 28 June 2016with written submissions closing at 4.00pm on 28 June 2016.

3. A report be provided to an Extraordinary Meeting being held on Thursday 30 June 2016 forCouncil to consider submissions received and to finalise the 2016/17 Operational Plan.

Carried 09 310516

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Council rose for dinner at 7.49pm.

The meeting resumed at 8.19pm.

Mayor Kathy Sajowitz and Acting General Manager, Gary Wallace joined the meeting at 8.19pm.The Mayor assumed the role of Chair at this point in time.

06.03 DELEGATIONS REGISTERFile No: Governance/Meetings/Finance Committee/May 2016Author: Lynette Safranek, Finance & Community Services Director

SummaryCouncil is required to review all its delegations on an annual basis. The Delegations of Authority forthe purchase of goods and services by staff are submitted for review and adoption.

Moved: DoneySecond: McCarthy

That the following delegations of authority to staff for the purchase of goods and services on behalfof Council is endorsed and replaces all previous delegations, effective immediately.

Position

DelegationPurchaseswithinbudgetedprovision

Chequeauthorisation

Bank Transferauthorisation

Credit Cardlimits

General Manager $150,000 $500,000 $500,000 $5,000Executive Assistant/VIC coordinator

$2,000 $2,000

Human ResourcesCoordinator

$2,000 $2,000

WHS/Risk CoordinatorFinance & CommunityServices Director

$50,000 $500,000 $500,000 $3,000

Finance Coordinator $500,000 $500,000Management Accountant $150,000 $150,000Community ServicesCoordinator

$2,000

Storeman $5,000 $2,000IT/GIS Coordinator $2,000

Planning & DevelopmentDirector

$50,000 $500,000 $500,000 $3,000

Manager Health & Building $2,000Works & EngineeringDirector

$100,000 $500,000 $500,000 $3,000

Works Manager $10,000 $2,000

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Project Engineer $10,000Water/Waste WaterManager

$3,000

Plant Foreman $5,000 $2,000

Amendment Moved: SajowitzSecond: Gibbons

That the following delegations of authority to staff for the purchase of goods and services on behalfof Council is endorsed and replaces all previous delegations, effective immediately and that onlyDirectors, the General Manager and the Mayor hold a Credit Card as per the amended tablebelow:

Position


Chequeauthorisation


Credit Cardlimits


$2,000


$2,000


$50,000 $500,000 $500,000 $3,000


$2,000

Storeman $5,000IT/GIS Coordinator $2,000


$50,000 $500,000 $500,000 $3,000


$100,000 $500,000 $500,000 $3,000

Works Manager $10,000Project Engineer $10,000Water/Waste WaterManager

$3,000

Plant Foreman $5,000Mayor $2,000

The amendment was put and won. The amendment becomes the motion.

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Moved: SajowitzSecond: Gibbons

That the following delegations of authority to staff for the purchase of goods and services on behalfof Council is endorsed and replaces all previous delegations, effective immediately and that onlyDirectors, the General Manager and the Mayor hold a Credit Card as per the amended tablebelow:

Position


Chequeauthorisation


Credit Cardlimits


$2,000


$2,000


$50,000 $500,000 $500,000 $3,000


$2,000

Storeman $5,000IT/GIS Coordinator $2,000


$50,000 $500,000 $500,000 $3,000


$100,000 $500,000 $500,000 $3,000

Works Manager $10,000Project Engineer $10,000Water/Waste WaterManager

$3,000

Plant Foreman $5,000Mayor $2,000

Carried 10 310516

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06.04 REQUEST FOR SPONSORSHIP – BATHURST BROADCASTERSFile No: Governance/Integrated Planning and Reporting/Community Strategic PlanAuthor: Gary Wallace, Acting General Manager

SummaryIn October 2015 Council gave in principle agreement to become a sponsor partner in a proposed2016 Mayfield Garden Music Festival being coordinated by Bathurst Broadcasters and RadioStations 1503 2BS Gold and B-Rock 99.3FM.

Moved: LordSecond: Gibbons

That Council delegate authority to the Mayor and General Manager to negotiate a sponsorshippackage for the 2016/17 Mayfield Garden Music Festival.

Carried 11 310516

Late report items 05.01 and 05.02 were tabled at this point in time.

05.01 MAYORAL MINUTE - LEGAL ACTIONFile No: Governance/Reporting/Boundaries Commission ReviewAuthor: Mayor Kathy Sajowitz and Gary Wallace, Acting General Manager

SummaryThis report seeks to provide an update relating to legal action as a result of a resolution fromWalcha Council with respect to the current NSW State Government reform processes.

Moved: LordSecond: Morgan

That:

1. Council allocate an additional $30,000 for legal expenses.2. Should the Council determine to proceed, resolve that the expenditure is required and

warranted in accordance with the guidelines under Section 23a of the Local Government Act toenable the legitimate exercise of legal rights of review or appeal.

Carried 12 310516

05.02 LAND AND ENVIRONMENT POTENTIAL APPEALFile No: Governance/Reporting/Boundaries Commission ReviewAuthor: Mayor Kathy Sajowitz and Gary Wallace, Acting General Manager

SummaryProviding information regarding current legal proceedings and requesting Council’s considerationof possible appeal.

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Moved: DoneySecond: Lord

That:

1. Council lodge a notice of intention to appeal against any adverse judgement resulting from thechallenge in the Land & Environment Court against the proposal to merge Oberon Council andBathurst Regional Council.

2. Council through its legal representatives seek an injunction preventing the Ministerrecommending that a proclamation be made pending consideration by Council the results ofthe legal challenge

3. Should Council determine to proceed $20,000 be allocated to support the intention to appeal.4. Should the Council determine to proceed, resolve that the expenditure is required and

warranted in accordance with the guidelines under Section 23a of the Local Government Act toenable the legitimate exercise of legal rights of review or appeal.

Carried 13 310516

7. CLOSED SESSION / CONFIDENTIAL REPORTSThere are no Closed Session Reports listed for consideration.

8. GENERAL BUSINESSNil

9. CLOSURE OF MEETINGThe Mayor declared the meeting closed at 9.05pm.

The next Finance Committee Meeting of Oberon Council will be held on:

A date to be advised

in the Oberon Council Chambers137 – 139 Oberon Street, Oberon.

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Oberon Council - Agenda and Business Papers – Finance Committee – 25 October 2016

05.01 CCTV SECURITY NETWORK UPGRADE-OBERON STREETFile No: Laws and Enforcements/Notifications/SecurityAuthor: Gillian Salmon Grants Coordinator

SummaryA revised scope of works for the project to upgrade and extend the CCTV security network inOberon Street has been developed to take advantage of recent advances in CCTV cameratechnology and to overcome unforeseen difficulties in extending the network beyond the range ofexisting coaxial cables.

There has been a need to revise the project as the CCTV network west of Fleming Street identifieddifficulties in using cameras connected to the existing underground coaxial cables

The new proposal will deliver a state of the art CCTV network that is an economic, efficient andeffective way of improving public safety and security in Oberon’s main commercial and businessareas. Further, the proposed wireless Ethernet equipment will allow for future expansion of theCCTV beyond Oberon Street in the future.

Recommendation

That Council:1. Approve the amendment to the project scope.2. Commit $28,000 from internal restricted funds to this project.3 Provide the Acting General Manager and Mayor with authority to sign the revised funding

agreement.

CommentIn February 2016, Council applied for a grant from the Commonwealth Governments Safer StreetsProgramme to upgrade and extend the CCTV network coverage in the main commercial zones ofOberon Street.

The main objectives of the new CCTV infrastructure is to improve the public’s general feeling ofsafety and security in the town’s main retail and commercial area and in alcohol free zones outsideOberon’s main licensed premises.

At the time of application the cost of the estimated upgrade was $26,392. This project was a dollarfor dollar grant with the Commonwealth Governments Safer Streets Programme. Council resolvedto support this in early 2016.

In June 2016, Council was notified by the Hon Michael Keenan MP Minister for Justice that ourapplication was successful and that Council had been awarded a grant of up to $25,000 towardsthe project (dollar for dollar).

A number of things have occurred while scoping this project which alters the scope of the project:

1. An assessment of the technical logistics involved in extending the CCTV network west ofFleming Street identified some difficulties in using cameras connected to the existingunderground coaxial cables to cover the area outside Sargent’s Rural Supplies, The OberonMedical Centre and the Tourist Hotel.

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2. Oberon Police identified the area around the Cook Park Toilet as a crime hotspot for drugtrafficking. The existing network does not cover the rear of the toilet block and the carpark areabetween Tally’s Lane and Cook Park.

3. Recent improvements in CCTV camera technology since the original application presentsCouncil with the option to use wireless ethernet camera technology to cover areas notserviced by the existing coaxial cable infrastructure. While expensive the newest technologyhas the advantage of significantly improving picture quality and image resolution. Thesecameras are also effective in low light situations.

4. Head end hardware (recorders) for the network will be relocated within Council to ensure thatCCTV footage can only be viewed by authorised personnel, including police officers.Relocating the recorders will ensure that Council meets its obligations under the NSWGovernment policy statement and guidelines for the establishment and implementation ofCCTV in public places (2014) and the Privacy and Personal Information Protection Act 1998(PPIP ACT)

The advantage of installing a state of the art system now is that it would have the capacity forfuture expansion of the system using wireless cameras to areas where there is no feasible way ofcabling across large distances. Public buildings that could be covered by an expanded network inthe future include the new Community Hub (Robert (Bob) Hooper Community Centre and Library)The Common and the Oberon Pool Complex. The revised project also provides for replacing thenine existing cameras consisting of old analogue technology cameras, with this new technology.This was not considered under the previous funding approval.

A map of the amended CCTV coverage area FOLLOWS.

Based on the quotes, the break up of the project is as follows:

Upgrade existing analogue cameras and head end technology $14,000Relocate recorders $3,000Install Ethernet wireless nodes to area beyond existing coaxial framework west of Fleming Street $36,000

------------Total Project Cost $53,000

Due to delays in the Attorney Generals Department (AG) preparing and finalising fundingagreements, the AG has revised the initial funding agreement by extending the project milestonesby one (1) month.

Under the revised funding agreement the new CCTV equipment will need to be installed, testedand commissioned by January 2017. This represents an extremely tight time frame for suppliers ofthe network given that the Christmas break falls within this timeframe.

The amended project will cost approximately $53,000. Currently, $13,000 has been allocated tothis project. In order to undertake the revised project a further $15,000 will need to contributed asthe approved Commonwealth Safer Streets grant of $25,000 is conditional upon a dollar for dollarcontribution by Council.

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Proposed CCTV network coverage, showing key attractors and proposed camera sites

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Oberon Council - Agenda and Business Papers – Ordinary Meeting – 25 October 2016

05.02 COMMUNITY SERVICES AND SENIORS WELFARE COMMITTEE MEETINGFile No: Governance/Meetings/Finance CommitteeAuthor: Lynette Safranek, Finance and Community Services Director

SummaryMinutes of the final combined Seniors Welfare Committee and Community Services Committeemeeting held on 15 September 2016 are submitted for Council’s information and consideration.

Recommendation

That Council receive report 05.03 as information.

CommentFOLLOWING is the Minutes of the combined Seniors Welfare and Community ServicesCommittees held on 15 September 2016.

All members agreed that the former Community Services and Seniors Welfare Committees becombined.

The members agreed that an invitation be sent to all current members of the two committees toprovide Council with an expression of interest in becoming a member of the newly formedcommittee.

The Terms of Reference document for the former committees are being considered by themembers with the aim to discuss and compose the terms of reference for the new committee at theinitial meeting.

The next meeting has been set for Thursday, 1 December 2016 commencing at 2.00pm.

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OBERON COUNCIL – OBERON COMMUNITY SERVICES COMMITTEEPage 1 of 2

Minutes of the Oberon Community Services Committee Meeting held on 23 June 2016

The Combined Oberon Community Services and Seniors Welfare Committee Meeting washeld on 15 September 2016 in the Council’s Committee Room, 137-139 Oberon St, Oberon.

The Meeting commenced at 2:00pm

ATTENDANCE

Clr John Morgan - Chair Council MemberGary Wallace Acting General ManagerRobin Toedter Community RepresentativeTerry Boyce Community RepresentativeKathy Beesley Community Services CoordinatorSue Fisher-Smith Oberon Neighborhood Centre RepresentativeClr Jill Evans Council MemberMark Boffa Community RepresentativeOwen Rogers Community RepresentativeNorelle Hiam Community RepresentativeGillian Salmon Council Member

APOLOGIES

Lynette Safranek Finance and Community Services DirectorMayor Kathy Sajowitz - Chair Council Member

1. APOLOGIES – see Attendance and Apologies above

2. DECLARATIONS OF INTEREST- Nil

3. MINUTES OF THE PREVIOUS MEETING HELD ON 23 JUNE 2016

4. BUSINESS ARISING FROM PREVIOUS MEETING - Nil

5. REPORTS

a. It was agreed by all members of the former Community Services and SeniorsWelfare Committees that the two committees be combined. The committeeagreed that this would benefit the community and will be efficient if workingparties were created to suit each project that may occur.

It was also discussed that an invitation will be sent to all current members ofthe two committees to express their interest in becoming a member of thenewly formed committee. All members that would like to be a member of thenew committee will have to notify Council. The Acting General Managerstressed that there will not be a limit on how many members the newcommittee has.

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OBERON COUNCIL – OBERON COMMUNITY SERVICES COMMITTEEPage 2 of 2

Minutes of the Oberon Community Services Committee Meeting held on 23 June 2016

b. The Terms and Reference document for the former committees was given tothe members for them to consider as there will be an initial meeting to discussand compose the terms of reference for the new committee at the initialmeeting as well as a new name.

6. GENERAL BUSINESS

Terry Boyce suggested that the new committee can focus on advertising Oberonevents like Parkes Elvis festival and Oberon to be more Caravan and RV friendly toboost the town economy.

Sue Fisher-Smith mentioned that a presenter from the Human Services Departmentwill be in Oberon to discuss the Government changes to the Pension which will takeplace 1 January 2017. This will take place at 1pm Friday 7 October 2016 the RobertHooper Community Centre. Sue added that she will need to take bookings as theCommunity Centre can only hold 70 people. This will be advertised in the localReview. The Acting General Manager asked Sue if Oberon Council can assist withadvertising this event.

Recommendation: That the committee seek Oberon Council support to help withadvertising this event by placing this information on the Council Website andFacebook page.

7. NEXT MEETING DATE AND MEETING CLOSE

The next meeting will be held on Thursday 2016 commencing at 2.00pm.

Meeting closed at 2.40pm

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Oberon Council - Agenda and Business Papers – Finance Committee Meeting – 25 October 2016

05.03 STATEMENT OF INVESTMENTSFile No: Financial Management/Investments/RegisterAuthor: Lynette Safranek, Finance & Community Services Director

SummaryReporting the Statement of Investments as at 30 September 2016.

Recommendation

That report item 05.40 is received as information.

CommentInterest accrued on active investments for the month of September came to $25,764 with anaverage interest rate of 4.09% performing well above the 90 day Bank Bill Swap Rate of 1.40%.This is due to the Council taking advantage of the Commonwealth Bank’s higher than normalinvestments (between 4.40% and 5.15%). Interest receipted for the month of September on TermDeposits matured totalled $17,694.52. Total year to date interest receipted on maturedinvestments is $161,455.

The cash rate has remained unchanged at 1.5 per cent. The release of the Labour force numbersfor September 2016 indicate that employment shrank 9,800 due to a huge 53,000 fall in full-timejobs against a rise of 43,200 part-time jobs. Overall the unemployment rate fell to 5.6% due to a tofall in the participation rate.

Last week saw the major currencies generally firmer against the US dollar in European and UStrade. The Euro rose from lows near US$1.0970 to US$1.1005 and ended US trade nearUS$1.1000. The Aussie dollar rose from lows near US75.85 cents to highs around US76.30 centsand ended US trade near US76.25 cents, and the Japanese yen rose from 104.26 per US dollar toJPY103.77, ending US trade near JPY103.84.

0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%

Oberon CouncilAnnualised Monthly Return vs 90 Day BBSW

16/17 90 Day BBSW

16/17 TD % Monthly Return

15/16 90 Day BBSW

15/16 TD % Monthly Return

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At 30 September 2016, $11,300,000 was invested as shown in the following Statement, with thetotal cash at call being $12,242,790.34.

InstitutionDate of

InvestmentInterest

rateDate ofMaturity Value

Cash at Call

CBA Business Online Saver 300,836.00

CBA Business At Call 434,887.39

NAB Business Online Saver 207,066.95

Total $942,790.34

Active Term Deposits

ME Bank 13/04/2016 3.10% 11/10/2016 500,000.00

Auswide Bank Ltd 29/04/2016 3.12% 26/10/2016 500,000.00

Bank of Queensland 3/02/2016 3.05% 2/11/2016 500,000.00

AMP Bank 12/05/2016 3.00% 10/11/2016 500,000.00

AMP Bank 16/05/2016 3.00% 16/11/2016 500,000.00


My State Bank 2/03/2016 3.10% 7/12/2016 500,000.00

AMP Bank 7/06/2016 3.00% 7/12/2016 500,000.00

People’s Choice Credit Union 10/06/2016 3.05% 14/12/2016 500,000.00

AMP Bank 23/06/2016 3.00% 20/12/2016 500,000.00

Commonwealth Bank 30/06/2016 4.40% 30/12/2016 500,000.00


National Australia Bank 20/07/2015 2.94% 20/01/2017 500,000.00



AMP Bank 09/08/2016 2.95% 09/03/2017 500,000.00


AMP Bank 23/08/2016 2.95% 21/03/2017 500,000.00

AMP Bank 31/05/2016 3.00% 31/05/2017 500,000.00


Reliance Credit Union 3/9/2016 2.75% 3/04/2017 500,000.00

MyState Bank 5/9/2016 2.65% 8/3/2017 500,000.00

Total $11,300,000.00

Total Cash at Call $12,242,790.34

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September saw the maturity of two investments with Reliance Credit Union and MyState Bank.

Institution Dateinvested Rate Maturity

date Amount Interestearned

Reliance 3/2/2016 3.00% 3/9/2016 500,000.00 8,753.42MyState Bank 4/2/2016 3.05% 5/9/2016 500,000.00 8,941.10

Total Interest earned $17,694.52

Two maturing deposits were rolled over during the month of September 2016 with Reliance andMyState Bank.

Institution Dateinvested Rate Maturity date Amount

Reliance 3/9/2016 2.75% 3/4/2017 500,000.00

MyState Bank 5/9/2016 2.65% 8/3/2017 500,000.00

Total $1,000,000.00

I certify that the investments have been made in accordance with Section 625 of the LocalGovernment Act 1993, Clause 212 of the Local Government (General) Regulations 2005, andCouncil's Investments Policy.

Lynette SafranekResponsible Accounting Officer

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05.04 U3A MEMORANDUM OF UNDERSTANDINGFile No: Community Services/AgreementsAuthor: Sharon Swannell, Executive Coordinator

SummaryCorrespondence has been received from Oberon U3A (University of the Third Age) seeking aformalised Memorandum of Understanding with Oberon Council for the use of community facilities.

Recommendation:

That Council delegate authorisation to the Mayor and Acting General Manager to enter into aMemorandum of Understanding with the Oberon U3A to recognise the current use of communityfacilities for the next four years.

SummaryOberon’s U3A attracts like minded senior citizens to come together to teach, learn from each otherand participate in new activities. U3As are voluntary, self help organisations; they are groups thatderive their strength from members’ capacity to introduce others to a range of activities and newskills. U3A members in Oberon are aged 50 or more and the organisation is not for profit.

The organisation has been running for more than three years now, with membership steadilyclimbing each year. Currently there are almost 200 members in Oberon and approximately 40volunteer teachers/facilitators.

Currently, U3A activities are utilising space at the Robert (Bob) Hooper Community Centre, CTCConference and Training rooms, and the Oberon Swimming Pool. A schedule of the currentbookings for community facilities utilised by the group is provided in the table that FOLLOWS.

Oberon U3A are seeking a Memorandum of Understanding with Oberon Council which states thatCouncil will continue to support the Oberon U3A by continuing to offer its facilities, in the case ofthe Robert (Bob) Hooper Community Centre and the Community Technology Centre Conferenceand Training Rooms, free of charge and that it will continue to allow the U3A to use the poolfacilities at a reduced rate for its summer fitness class.

It should be noted that under current arrangements negotiation is required to move U3A activitiesto suitable alternate accommodation when paid bookings are requested. It is suggested that theMemorandum of Understanding include a statement that when paid bookings require the spacecurrently occupied by U3A all reasonable steps will be taken to find suitable alternate rooms tohouse these activities.

Acting General Manager’s CommentGuidelines have been issued under Section 23A of the Local Government Act 1993 titled ‘CouncilDecision making During Merger Proposal Periods’. Council must consider the guideline in relationto each decision they make during the proposal period. This matter is considered to comply withthe guidelines.

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Usage Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Total Cost

Sessions 0 2 2 2 2 1 0 7 7 4 5 5

Hours 5 4 4 4 4 0 14 9 8 16 10 115.0 1,460.50$

Function Room Sessions 4 4 4 4 5 6 4 4 5 4 6 4

Hours 4 4 4 4 6 8 4 4 5 4 7 4 112.0 2,632.00$

Meeting Room Sessions 0 0 0 3 5 1 0 0 0 0 0 2

Hours 9 15 3 4 42.0 533.40$

Conference Room Sessions 27 27 27 23 23 23 20 27 25 25 26 23

Hours 76.5 76.5 76.5 78 78 78 48 69 60 60 62 56 1114.5 26,748.00$

Training Room Sessions 4 8 5 4 5 4 4 5 5 4 5 5

Hours 8 20.5 11.5 8 10 8 8 10 11.5 8 10 16 187.5 5,062.50$

1,571.0 36,436.40$

U3A Usage of Council Facilities for period July 2015 - June 2016

Activity Room

Robert (Bob) Hooper Community Centre

Community Technology Centre

TOTAL HOURS AND $ VALUE

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05.05 QUARTERLY BUDGET REVIEW STATEMENT – JUL TO SEP 2016File No: Governance/Meetings/Finance Committee/October 2016Author: Lynette Safranek, Finance & Community Services Director

SummaryThe Quarterly Budget Review Statement (QBRS) is presented with income and expenditure for theperiod from 1 July to 31 September 2016.

Recommendation:

That the Quarterly Budget Review Statement for the period ending 30 September 2016 bereceived as information.

SummaryATTACHED is a copy of the Quarterly Budget Review Statements (QBRS) for the period 1 July to31 September 2016.

Council has come in under budget for Net Operating Results before Capital by $37,000 for thisquarter. This is due mainly to the wet weather causing a large amount of planned work to bedelayed, with funding redirected to Natural Disaster Recovery.

Total Expenses from Continuing Operations includes the work undertaken after the storms in July,and we have yet to receive the funding as part of the Natural Disaster Declaration by the StateGovernment.

Once the Natural Disaster funding is received, and the weather improves enough to enable Councilstaff to catch up on scheduled work, the second quarter for the 2016/17 financial year will provide abetter indication of our actual expenditure.

There is no carry forward from the 2015/16 financial year, as the funds remaining for projectsfunded by State and Federal Grants, and the Local Infrastructure Renewal Scheme loan havebeen captured within the 2016/17 budget figures.

Acting General Manager’s CommentGuidelines have been issued under Section 23A of the Local Government Act 1993 titled ‘CouncilDecision making During Merger Proposal Periods’. Council must consider the guideline in relationto each decision they make during the proposal period. This matter is considered to comply withthe guidelines.

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Quarterly Budget Review Statement

for the period 01/07/16 to 30/09/16

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TABLE OF CONTENTS Page

1 Definitions 3

2 Responsible Acting Officer's Statement 4

3 Income & Expenses Budget Review Statements

- Consolidated 5- General Fund 6- Water Fund 7- Sewer Fund 8- Community Strategic Plan 9

4 Cash & Investments Budget Review Statement 10

5 Consultancy & Legal Expenses Budget Review Statement 11

Income & Expenses Budget Review Statements

Quarterly Budget Review Statementfor period 1 July to 30 September 2016

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Definition of Terms

RatesRates revenue is income derived by levying property owners based on the land value of the property;An annual charge is made against each parcel of rateable land where the applicable service is available.

Fees & User Charges

Specific Purpose Operating Grants

Developer Contributions (S94)

Capital Grants

Other Capital Contributions

Employee Costs

Operating CostsAn operating cost is the day to day costs incurred in the normal operations of council.

Asset Maintenance

Asset OperationsAsset operations are the expenses incurred in the general use of an asset (eg cleaning)Asset Depreciation

Reserves Tfr From

Asset Purchases

Infrastructure Renewals

Infrastructure Upgrade/New

Loan Payments (Principal)This is the amount being repaid to the lender to reduce the amount owing for funds borrowed

Reserves Tfr ToThis is placing current year funds aside for use in future financial years

Infrastructure upgrade/new is expenditure used to create new assets or to increase the capacity of existing assets beyond their original service potentialand/or life of the asset

Capital contributions are funds provided by third parties towards the cost of major asset renewal or upgrades

Asset maintenance is a direct periodic cost incurred to keep an asset as close as possible to its original condition without extending its original life.

Revenue from a charge made in exchange for the provision of a specific good or service (eg user charge for water consumed)

Specific Purpose Operating Grants are tied grants and are required to be used for a specific purpose such as operations at a child-care centre.

Capital grants are funds provided by third parties (generally other levels of government) towards the cost of major asset renewal or upgrades

Contributions are defined as non-reciprocal transfers to the local government in the sense that it is not required to give value in exchange for contributionsdirectly to the contributor. Interest income is that derived from the investment of surplus funds

Developer contributions are payments (in kind or cash) provided by developers to help defray the additional infrastructure costs being incurred by councilas the result of land development

Employee costs include salaries and wages paid, superannuation and workers compensation expenses as well as other costs incurred as a result ofemploying staff

This is the recognition of the consumption (or cost) of a portion of the useful life of an asset during the current year

A transfer from reserves is utilising funds quarantined during prior periods to be used in the current budget period

Loan proceeds are the initial borrowings from a financial institution to assist in funding particular planned projects within the current budget period

The purchase of a resource to be used for the operations of council, and expected to provide a benefit for a period greater than one year.

Expenditure on an existing asset which returns the service potential of the life of the asset to its original state.

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Oberon Council Quarterly Budget Review Statementfor the period 01/07/16 to 30/09/16

Report by Responsible Accounting Officer

The following statement is made in accordance with Clause 203(2) of the Local Government (General)Regulations 2005:

It is my opinion that the Quarterly Budget Review Statement for Oberon Councilfor the quarter ended 30/09/16 indicates that Council’s projected financial position at 30/6/17 will besatisfactory at year end, having regard to the projected estimates of income and expenditureand the original budgeted income and expenditure.

Lynette SafranekResponsible Accounting Officer

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Income & Expenses Budget Review StatementCouncil ConsolidatedBudget review for the quarter ended 30 September 2016

Original Revised Variations Projected Actual($000's) Budget Carry Other than Budget for this Year End Sep-16

2016/17 Forwards by QBRS 2016/17 Sep Qtr ResultIncomeRates and Annual Charges 4,877 - - 4,877 - 4,877 4,877User Charges and Fees 3,107 - - 3,107 - 3,107 119Interest & Investment Revenues 394Other Revenues 1,484 - - 1,484 - 1,484 5Grants & Contributions - Operating 4,186 - - 4,186 - 4,186 2,117Grants & Contributions - Capital 4,493 - - 4,493 - 4,493Net gain from disposal of assets 625 - - 625 - 625Total Income from Continuing Operations 19,166 - - 18,772 - 18,772 7,118

ExpensesEmployee Costs 5,054 - - 5,054 - 5,054 1,458Borrowing Costs 319 - - 319 - 319 86Materials & Contracts 3,960 - - 3,960 - 3,960 1,142Depreciation 3,743 - - 3,743 - 3,743Other Expenses 2,175 - - 2,175 - 2,175 555Total Expenses from Continuing Operations 15,253 - - 15,253 - 15,253 3,241

Net Operating Result from Continuing Operations 3,913 - - 3,519 - 3,519 3,877

Discontinued Operations - Surplus/(Deficit) - - -

Net Operating Result from All Operations 3,913 - - 3,519 - 3,519 3,877

Net Operating Result before Capital Revenue (580) - - (974) - - (974) 3,877

1. Operating PerformanceOperating Revenue (excl. Capital) - Operating ExpensesOperating Revenue (excl. Capital Grants & Contributions)

2. Own Source Operating RevenueOperating Revenue (excl. ALL Grants & Contributions)Total Operating Revenue (incl. Capital Grants & Cont)

This ratio measures Council’s achievement of containing operatingexpenditure within operating revenue.

This ratio measures fiscal flexibility. It is the degree of reliance on externalfunding sources such as operating grants & contributions. Office of LocalGovernments preliminary criteria for 'Fit for the Future' requires > 60% over 3years. (Less reliance on grant income)

NotesApproved Changes

10.090.89

-10.53 -6.40-20.00 %-10.00 %

0.00 %10.00 %20.00 %

2014/15 2015/16 2016/17(O)

2016/17(P)

Rat

io%

1. Operating Performance

60.0672.05

65.86 65.12

0.00 %20.00 %40.00 %60.00 %80.00 %

100.00 %

2014/15 2015/16 2016/17(O)

2016/17(P)

Rat

io%

2. Own Source Operating Revenue

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Income & Expenses Budget Review StatementGeneral FundBudget review for the quarter ended 30 September 2016


2016/17 Forwards by QBRS 2016/17 Sep Qtr ResultIncomeRates and Annual Charges 3,807 3,807 - 3,807 3,804User Charges and Fees 1,728 1,728 - 1,728 (295)Interest & Investment Revenues 383 -Other Revenues 1,195 1,195 - 1,195 3Grants & Contributions - Operating 3,820 3,820 - 3,820 2,115Grants & Contributions - Capital 4,493 4,493 - 4,493 -Net gain from disposal of assets 625 625 - 625 -Total Income from Continuing Operations 16,051 - - 15,668 - 15,668 5,628

ExpensesEmployee Costs 4,761 4,761 - 4,761 1,303Borrowing Costs 319 319 - 319 86Materials & Contracts 3,324 3,324 - 3,324 874Depreciation 3,374 3,374 - 3,374 -Other Expenses 1,646 1,646 - 1,646 483Total Expenses from Continuing Operations 13,425 - - 13,425 - 13,425 2,747


Discontinued Operations - Surplus/(Deficit) - -


Net Operating Result before Capital Revenue (1,867) - - (2,250) - (2,250) 2,881

Operating Revenue (excl. Capital Grants & Contributions)






12.692.49

-9.81-20.00 %-10.00 %

0.00 %10.00 %20.00 %

2014/15 2015/16 2016/17(O)

2016/17(P)

Rat

io%


53.6067.70

59.94 59.15

0.00 %20.00 %40.00 %60.00 %80.00 %

100.00 %

2014/15 2015/16 2016/17(O)

2016/17(P)

Rat

io%


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Income & Expenses Budget Review StatementWater FundBudget review for the quarter ended 30 September 2016

Original Revised Variations Projected Actual($000's) Budget Carry Other than Budget for this Year End 42,614

2016/17 Forwards by QBRS 2016/17 Sep Qtr ResultIncomeRates and Annual Charges 450 450 - 450 456User Charges and Fees 1,050 1,050 - 1,050 248Interest & Investment Revenues 8Other Revenues 81 81 - 81 0Grants & Contributions - Operating 45 45 - 45Grants & Contributions - Capital - - -Net gain from disposal of assets - - -Total Income from Continuing Operations 1,634 - - 1,626 - 1,626 705

ExpensesEmployee Costs 215 215 - 215 105Borrowing Costs - - -Materials & Contracts 617 617 - 617 246Depreciation 182 182 - 182Other Expenses 388 388 - 388 41Total Expenses from Continuing Operations 1,402 - - 1,402 - 1,402 392

Net Operating Result from Continuing Operations 232 - - 224 - 224 313

Discontinued Operations - Surplus/(Deficit) - - 0

Net Operating Result from All Operations 232 - - 224 - 224 313

Net Operating Result before Capital Items 232 - - 224 - 224 313


NSW Local Government Industry Key Performance Indicators (OLG):


This ratio measures Council’s achievement of containing operating expenditure within operating revenue.


This ratio measures fiscal flexibility. It is the degree of reliance on external funding sources such as operatinggrants & contributions.

Approved ChangesNotes

-3.95 %

60.06 %

10.09 %

0.89 %

-3.95 % -6.82 %-20.00 %

-10.00 %

0.00 %

10.00 %

20.00 %

2014/15 2015/16 2016/17(O)

2016/17(P)

Rat

io%


60.06 % 72.05 %54.72 % 53.77 %

0.00 %20.00 %40.00 %60.00 %80.00 %

100.00 %120.00 %140.00 %

2014/15 2015/16 2016/17(O)

2016/17(P)

Rat

io%


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Income & Expenses Budget Review StatementSewer FundBudget review for the quarter ended 30 September 2016

Original Revised Variations Projected Actual($000's) Budget Carry Other than Budget for this Year End 42,614

2016/17 Forwards by QBRS 2016/17 Sep Qtr ResultIncomeRates and Annual Charges 620 620 - 620 616User Charges and Fees 329 329 - 329 166Interest & Investment Revenues 3Other Revenues 208 208 - 208 2Grants & Contributions - Operating 320 320 - 320 2Grants & Contributions - Capital - - -Net gain from disposal of assets - - -Total Income from Continuing Operations 1,482 - - 1,478 - 1,478 786

ExpensesEmployee Costs 78 78 - 78 50Borrowing Costs - - -Materials & Contracts 20 20 - 20 22Depreciation 188 188 - 188Other Expenses 141 141 - 141 31Total Expenses from Continuing Operations 427 - - 427 - 427 103

Net Operating Result from Continuing Operations 1,055 - - 1,052 - 1,052 683

Discontinued Operations - Surplus/(Deficit) - - 0

Net Operating Result from All Operations 1,055 - - 1,052 - 1,052 683

Net Operating Result before Capital Items 1,055 - - 1,052 - 1,052 683






-30.00 %Rat

io%


1

0.00 %20.00 %40.00 %60.00 %80.00 %

100.00 %120.00 %140.00 %

0

Rat

io%


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Income & Expenses Budget Review StatementCommunity Strategic PlanBudget review for the quarter ended 30 September 2016


2016/17 Forwards by QBRS 2016/17 Sep Qtr ResultIncomeOur Community 599 599 599 475Basic Services 10,876 10,876 10,876 2,715Economic Prosperity 1,344 1,344 1,344 11Responsive & Caring 343 343 343 29Open Communication 5,801 5,801 5,801 3,811Natural Environment 204 204 204 77Total Income from Continuing Operations 19,166 - - 19,166 - - 19,166 7,118

ExpensesOur Community 1,161 1,161 1,161 138Basic Services 9,557 9,557 9,557 1,532Economic Prosperity 307 307 307 96Responsive & Caring 585 585 585 158Open Communication 2,448 2,448 2,448 991Natural Environment 1,194 1,194 1,194 326Total Expenses from Continuing Operations 15,253 - - 15,253 - 15,253 3,241


Discontinued Operations - Surplus/(Deficit) - - - -


Net Operating Result before Capital Items 3,914 - - 3,914 - 3,914 3,877

Capital WorksOur Community 588 588 588 58Basic Services 2,973 2,973 2,973 1,088Economic Prosperity 20 20 20 44Responsive & Caring 129 129 100 229 35Open Communication - - - 6Natural Environment 7 7 7 -Total Capital Expenses 3,717 - - 3,717 100 3,817 1,231

Net Operating Result after Capital Items 197 - - 197 (100) 97 2,647


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Cash & Investments Budget Review StatementCouncil ConsolidatedBudget review for the quarter ended 30 September 2016

Opening Budgeted Budgeted Revised Variations Projected($000's) Balance Movements Year End Carry Other than Budget for this Year End

2016/17 Position Forwards by QBRS 2016/17 Sep Qtr ResultExternally Restricted (1)

Developer Contributions - General 1,262 1,262 1,262 1,262Specific Purpose Unexpended Grants 219 (219) 0 0 0Water Services 169 169 169 169Sewerage Services 2,130 2,130 2,130 2,130Domestic Waste Management 259 259 259 259Town Improvements 692 692 692 692LIRS Loan 2,716 2,716 2,716 2,716

Total Externally Restricted 7,447 (219) 7,228 - - 7,228 - - 7,228(1) Funds that must be spent for a specific purpose

Internally Restricted (2)

Plant & Vehicle Replacement 411 411 411 411Employees Leave Entitlement 647 647 647 647Cemetery Plaques 11 11 11 11Community Centre 10 10 10 10Community Technology Centre - - -Election 26 26 26 26Garbage Depot 882 882 882 882Gravel Pits 102 102 102 102Information Technology - - - -Land Development 751 751 751 751Finance 240Library 15 15 15 1 15Office Equipment 37 37 37 37Rail Crossings Update 38 38 38 38Residential Dwellings 27 27 27 27Road Construction 745 745 745 745Self Care Units 109 109 109 109Swimming Pool 257 257 257 257Total Internally Restricted 4,308 - 4,068 - - 4,068 - 4,068(2) Funds that Council has earmarked for a specific purpose

Unrestricted (ie. available after the above Restrictions) 359 456 456 456

Total Cash & Investments 12,114 11,752 - 11,752 - 11,752

Approved ChangesNotes

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Consultancy & Legal Expenses Budget Review Statement

Consultancy & Legal Expenses Overview

BugetedExpense (Y/N)

Consultancies Y

Legal Fees y

Definition of a consultant:

A consultant is a person or organisation engaged under contract on a temporary basis to providerecommendations or high level specialist or professional advice to assist decision making by management.Generally it is the advisory nature of the work that differentiates a consultant from other contractors.

Comments

Expenditure included in the above YTD figure but not budgeted includes:

Details

YTD Expenditure(Actual Dollars)

74,363

10,696

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15 | P a g e

6. CLOSED SESSION / CONFIDENTIAL REPORTSSummaryIn accordance with the Local Government Act 1993 and the Local Government (General)Regulation 2005, in the opinion of the General Manager, the following business is of a kind asreferred to in Section 10A(2) of the Act, and should be dealt with in a part of the meeting closed tothe media and public.

There are no Closed Session Reports listed.

7. GENERAL BUSINESS

8. CLOSURE OF MEETINGThe Mayor will declare the meeting closed.

The next Finance Committee Meeting of Oberon Council will be held on:

a date to be advised

in the Oberon Council Chambers137 – 139 Oberon Street, Oberon.

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Documents

AGENDA AND BUSINESS PAPERS Oberon Council Finance ... Finance... · (AMP), together known as a Resourcing Strategy. Moved: Morgan Second: Doney That: 1. Council place the Draft Operational