Date:

Tuesday, 20 April 2021

Time:

6.30pm

Location:

Council Chamber and remotely via Audio Visual Link.

Open to the Public in person and online via webcast.

 

Supplementary AGENDA

 

 

 

Ordinary Council Meeting

 

20 April 2021

 

 

Ben Taylor - signature

Ben Taylor

Chief Executive Officer

 


Ordinary Council Meeting Agenda

20 April 2021

 

Order Of Business

16      Efficient and Effective Council 5

16.3        Supplementary Report - Combined 2021/22 draft Financial Budget and draft Operational Plan (year 5 of the extended Delivery Program 2018/22) 5

16.4        Updated Report - Quarterly Budget Review Statement - December 2020. 109

 


Ordinary Council Meeting Agenda

20 April 2021

 

 

16        Efficient and Effective Council

16.3       Supplementary Report - Combined 2021/22 draft Financial Budget and draft Operational Plan (year 5 of the extended Delivery Program 2018/22)

File Number:           12275#276

 

Executive Summary

The purpose of this report is to seek support for public exhibition of the proposed Wollondilly Operational Plan 2021/22 at attachment 1 in accordance with guidelines issued by the Office of Local Government (OLG).

 

The Operational Plan 2021/22 is a detailed plan which provides information on Council’s key services, projects, programs and budget for the next financial year. It also includes a full list of all scheduled capital works and all proposed fees and charges. This plan outlines how Council will continue to deliver our important ongoing services for the Wollondilly community in the year ahead.

Council has a focus on continual improvement and in 2021/22 we are planning a number of key focus areas to enhance service delivery and organisation performance. The focus areas for the year ahead include:

1.      Roads, with more resources and funding.

2.      Jobs, investment & tourism.

3.      Customer experience.

4.      Improving organisational performance for our growing Shire.

 

The Draft Budget outlines that Council remains in a sound financial position, with a surplus position including capital amounts of $11.4M, a deficit before capital amounts of $1.1M, and extensive ongoing and significant capital investment in Roads, Buildings (including the Precinct) and Plant/Vehicles of $32.8M.

 

The Local Government Act 1993 requires Council to publicly exhibit the Operational Plan, consider any submissions received and formally adopt the final document by 30 June 2021.

 

It is recommended that the proposed Operational Plan 2021/22 is placed on exhibition in accordance with Section 405 of the Local Government Act for a minimum period of 28 days.

 

Following the exhibition period, Council will consider any submissions and make any necessary adjustments to the Operational Plan. It is anticipated the final Operational Plan 2021/22 will be submitted to Council in June 2021 seeking support for adoption.

 

Recommendation

That Council endorse the proposed Operational Plan 2021/22 and Budget 2021/22, for public exhibition for a minimum of 28 days.

 


 

Report

Integrated Planning and Reporting Framework

 

Council is required to undertake its corporate planning, budgeting and reporting activities in accordance with the Local Government Act 1993 (the Act) and the Local Government (General) Regulation 2005 (the Regulation), which incorporates the Integrated Planning and Reporting Framework (IPRF). The IPRF requires councils to adopt planning documents to ensure long, medium and short-term aspirations, priorities and needs of the community are identified and appropriate strategies are developed and implemented to respond to those needs. For Wollondilly these include the ‘Create Wollondilly’ Community Strategic Plan 2033, the Long-Term Financial Plan, a four-year Delivery Program (2017/18-2020/21), and an annual Operational Plan and Budget.

 

This Operational Plan is delivered as part of a 1 year extension to the current Delivery Program which was due to be delivered by June 2021. This responds to the NSW Minister for Local Governments decision on 25 March 2020 to make amendments to the Local Government Act 1993 (NSW), adding one year to the term of the sitting Councillors and extending the current Delivery Program to 2022. With the extension made by the Minister, we are now entering the fifth and final year extension of Council’s Delivery Program.

 

As a result following the budget highlights, this report includes a discussion on the status of the current Operational Plan 2020/21 actions and identifying any further required recommendations, in addition to providing the highlights of the proposed Operational Plan and budget for 2021/22 as included at attachment 1.

 

PROPOSED OPERATIONAL PLAN – YEAR 5

 

The proposed Operational Plan (2021/22) outlines the actions that will be undertaken to achieve the strategies as outlined in the four-year Delivery Program, which will bring us closer to the community’s long-term objectives as outlined in the Community Strategic Plan 2017-2027.

The below provides highlights of the proposed initiatives within the proposed Operational Plan 2021/22 (see attachment 1) under each of the 5 strategic directions as identified in Wollondilly’s Community Strategic Plan – Create Wollondilly 2033:

 

Sustainable and Balanced Growth

·    The past 12 months has seen a number of significant strategies being prepared and adopted by Council. The Strategic Planning Team will now focus on incorporating these strategies into the Local Planning Framework, helping to guide planning decision making, with a particular focus on job creation and economic development.

 

·    Council will ensure our community, local industry and businesses have the most up-to-date planning information relevant to Wollondilly by informing and integrating with the E-Planning Portal, hosted by the Department of Planning, Industry and Environment.

 

Management and Provision of Infrastructure

·    Significant progress will be made on the Transport Capital Works Program with increased funding. The objective of the plan is improve the road network, stopping further deterioration while reconstructing already failed roads. The program demonstrates a balanced approach of preventative treatments as well as full reconstructions. The team will also be focused on seeking commitment from the NSW Government for the Picton Bypass and additional funding support for the management of major roads across the Shire. 

 

 

·    The Wollondilly Cultural Precinct will be the foundation of ‘social infrastructure’ for the Shire, becoming a valued community asset that supports social cohesion and well-being. Progress will continue on the Precinct, which will see the refurbishment of the Shire Hall into new Council Chambers. Development will continue on the construction of a new performance space and a new childcare building.

 

Caring for the Environment

·    The recently adopted Waste Management Strategy will be Council’s roadmap to delivering waste management and resource recovery services and infrastructure that are affordable, economical and environmentally sustainable. High priority areas include continued ecological waste management, educational campaigns and embedding processes that can help support a growing Shire.

 

·    Protecting Wollondilly’s waterways will be a big focus with the Integrated Water Management Strategy guiding planning decisions and informing the local planning framework. The initiatives outlined in the adopted strategy guide Council in becoming more proactive and protective of the Shire’s waterways and water sources as growth continues.

Looking after the Community

·    Enabling effective communication with the community is of critical importance as Council seek to increase engagement and participation. As the community becomes more vocal around issues that affect them (for example the condition of the road network) it is important Council responds with communication that demonstrates all of the good work that is being done and is planned to do. To address this, a Communications and Engagement strategy will be developed and implemented.

 

·    To help bring the community together and amplify Wollondilly as a desired destination, Council has a jam-packed events calendar, including the much-loved Illuminate. It will also be the first time Council hosts the Thirlmere Festival of Steam, a popular and much-loved event for locals and visitors.

 

Efficient and Effective Council

·    The local Council election will be held on Saturday 4 September 2021, following the postponement in 2020 due to COVID19. This election will be the first in Wollondilly Shire history that will have a popularly elected Mayor.

 

·    The community will have the opportunity to help create the vision of Wollondilly as development begins for the new Community Strategic Plan. This long term plan will inform and guide what projects and initiatives Council will engage with and how the organisation will measure success.

 

·    Wollondilly is on the verge of exponential growth and it is essential that Council is adequately equipped financially and organisationally, to deal with the pressures on infrastructure, social services, transport, community and environment that are expected to come. To this end, Council is developing a business enhancement plan that will identify opportunities for change and improvement.

 

Our Key Focus Areas for 2021/22

 

This plan outlines how Council will continue to deliver our important ongoing services for the Wollondilly community in the year ahead. Council has a focus on continual improvement and in 2021/22 we are planning a number of key focus areas to enhance service delivery and organisation performance. The focus areas for the year ahead include:


 

1.      Roads, with more resources and funding.

2.      Jobs, investment & tourism.

3.      Customer experience.

4.      Improving organisational performance for our growing Shire. 

 

1.      Roads, with more resources and funding

Improving the condition of our roads is a key focus for both Council and the Community. Council’s extensive capital works program aims to deliver, maintain and renew priority infrastructure assets for our Shire.

The investment in our road renewal and upgrades will be $17.31M in 2021/22. The objective of the plan is to improve the road network, stopping further deterioration while reconstructing already failed roads. The program demonstrates a balanced approach of preventative treatments as well as full reconstructions.

There is a clear need for the NSW Government to take responsibility for major Wollondilly roads, with some 116 km of our 865 km road network more appropriately managed by the NSW Government given their traffic volumes. Council invests millions of dollars year on year to repair and upgrade these regional roads that could be better invested in other priority local roads across our network. Council is requesting the NSW Government take responsibility for roads such as Menangle Rd, Wilton Rd, Macarthur Drive, Remembrance Driveway, Finns Rd, Silverdale Road, Montpelier Dr, Barkers Lodge Rd, Avon Dam Rd, Werrombi Rd, Burragorang Rd and Woodbridge Road.

In addition, we are investing in additional internal resources to lead management of all of our transport and road planning and management.

 

2.      Jobs, investment & tourism

Local job creation through economic investment and tourism is a central priority for Council.

Council is directly investing $33.18M in local capital works to improve the Shire, stimulating local jobs through project delivery.

A service improvement for 2021/22 will be the creation of a new Business Investment Concierge and Executive Planner to unlocking greater business investment opportunities for our Shire and directly support local business growth and job creation. We will also be continuing to support and promote small business and tourism across the Shire through our dedicated and passionate team.

 

3.      Customer Experience

2020 saw Council take a big leap forward in online customer service, with the introduction of the new Customer Service Portal and other online service opportunities. Improving customer experience continues to be a focus for the organisation in 2021/22 and will be addressed through the development of customer experience plans for all service areas across Council, improved technology processes and systems including enhancement to the Customer portal and investment in our people as we strive to become an even higher performing Council. A range of proposed initiatives seek to contribute to continuous improvement in this area.

A service improvement for 2021/22 is the introduction of a dedicated full-time duty planner for our customers, providing planning advice and supporting our residents and small businesses progress their developments.


 

4.      Improving organisational performance for our growing Shire 

Council is working hard to improve our performance every day and has in place a range of initiatives to improve our service to the community. A key area is employee performance planning and development recognising the challenge of ensuring great service outcomes while experiencing considerable growth across the Shire.

Wollondilly is on the verge of exponential growth and it is essential that Council is adequately equipped financially and organisationally, to deal with the pressures on infrastructure, social services, transport, community and environment that are expected to come. A major focus this year is gearing up for growth by developing an organisational business strategy for growth.

This will ensure Council will become the best it can be - a high performing organisation managing change and growth well for the benefit of the current and future Wollondilly community.

 

Draft Budget 2021/22

 

The Operational Plan must include details of:

 

·              Estimated income and expenditure;

·              Ordinary rates and special rates;

·              Proposed fees and charges;

·              Council’s proposed pricing methodology; and

·              Proposed borrowings.

 

The Long Term Financial Plan must also be updated at least annually as part of the development of the Operational Plan.

 

Draft budget assumptions and highlights

 

The 2020/21 Draft Budget has been formulated to support the delivery of the proposed operational plan in order to achieve the key strategies as outlined in the four year delivery program.

 

Assumptions underpinning the key items within the budget include;

 

·              No changes proposed to the existing rating categories, with the 2% rate peg applied to the rate base to maintain service delivery levels, and the inclusion of an allowance to cater for the expected increase in the number of rateable assessments.

·              Fees and Charges have been reviewed in line with Council policy to manage increasing costs (See attachment 3). Noting the attachment will be incorporated as Appendix 1 when the draft document is placed on exhibition.

·              All positions across the organisation are filled, with the award increase (2%), performance management (MyPlan) and a vacancy rate (2%) applied to Employee costs.

·              Borrowing costs are reflective of current debt levels.

·              Depreciation expense factors in the increase in the valuation of councils assets (2020 Financials) and the significant ongoing investment in assets.

 

Budget highlights include:

 

·              The Draft Budget outlines that Council remains in a sound financial position

·              Total Revenue of $67.8M, $5M higher than the adopted 2020/21 budget, with rates and Annual Charges Revenue of $50.7M


 

 

·              Total Operating Expenses of $68.8M, $6.5M higher than the adopted 20/21 budget; with

o     Employee Costs of $28M

o     Materials and Contracts cost of $16.3M

o     Depreciation Expense of $16.6M

 

·              A surplus position including capital amounts of $11.4M (Capital Grants and Contributions of $12.5M), with a Deficit before capital amounts of $1.1M

·              Ongoing and significant capital investment in Roads, Buildings (including the Precinct) and Plant/Vehicles of $32.8M

·              Fees and Charges (854 in total) have been reviewed and it is proposed that:

 

o     437 be increased

o     338 to remain unchanged

o     53 be discontinued

o     20 be added.

 

 

FURTHER UPDATE ON CURRENT OPERATIONAL PLAN (2020/21)

 

A progress report on the current Operational Plan was reported to Council at the March 2021 Ordinary Council Meeting. Further clarification and updates are now provided at attachment 2, detailing actions:

 

·    to be carried forward into the proposed Operational Plan for 2021/22;

·    recommended to not be carried forward and removed (with reasons provided, largely related to recognising they describe business as usual functions of Council); and

·    that will be finalised by June 2021 and therefore meeting the completion date for the 2020/21 Operational Plan.

Consultation

This report requests Council to endorse the draft Operational Plan to be placed on public exhibition to provide the community with an opportunity to provide relevant feedback to Council on the plans for the year ahead. The exhibition period will be advertised on social media and on Council’s website.

Financial Implications

The draft Operational Plan outlines Council’s 2021/22 financial obligations and expectations. The document includes Council’s draft 2021/22 budget and proposed 2021/22 fees and charges.

Attachments

1.      Combined 2021/22 draft Financial Budget and Operational Plan

2.      Update on current Operational Plan (2020/21)

3.      WSC Fees_And_Charges_Report 2021-22   


Ordinary Council Meeting Agenda

20 April 2021

 

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Ordinary Council Meeting Agenda

20 April 2021

 

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Ordinary Council Meeting Agenda

20 April 2021

 

16.4       Updated Report - Quarterly Budget Review Statement - December 2020

File Number:           12275#278

 

Executive Summary

The purpose of this report is to present the Quarterly Budget Review Statement (QBRS) for the period ended 31 December 2020. The document reports detailed information on Council’s financial progress for the second quarter of the 2020/21 financial year.

Council’s financial position remains sound and performance against key financial indicators continues to meet benchmark or has improved since the end of 2020.

At the previous review an operating surplus of $283k was forecast. The current review is projecting a deficit of $1.746M, predominantly due to additional depreciation expense as outlined below. 

It is projected that Council will receive additional operating income of $5.023M which will largely offset increased expenditure across all categories other than depreciation of $5.294M.  Depreciation expense has been projected to increase by $1.758M to take into account the effect of the 2020 valuation adjustment and the addition of new assets.

The QBRS was presented at the ARIC meeting on 1 April 2021.

The recent storm/flood event has had a significant impact on our road assets, which has resulted in a substantial amount of additional unplanned works and the decision to accelerate works to address the immediate structural issues of key roads across the Shire.

Council immediately implemented a range of road repair works to ensure the safety of the Wollondilly community and maintain the integrity of the road network.

The full Road Recovery Plan March 2021 includes an additional $5.2M investment over the next 4 months in minor and major patching as well as major reconstruction to address the immediate usability and longer term structural impacts of affected sections of the road network.

The Plan is already being delivered, and this report seeks endorsement of the additional funding for the 2020/21 Financial Year to enable the major construction works to be carried out.

The Road Recovery Plan covers 7 main areas:

1.      Immediate storm/flood impact management

2.      Upgrading of temporary repairs with minor patches

3.      Accelerating major patching and asphalt reconstruction works

4.      Additional road reconstruction works

5.      Revising the Road Works Program for future years to target investment where it’s needed

6.      Getting on with the job of the planned 2020/21 Road works Program

7.      Additional resources to lead transport and road management


 

 

Recommendation

That Council:

1.      Adopt the Quarterly Budget Review Statement for the period ended 31 December 2020 and the proposed adjustments to the 2020/21 Budget Estimates.

2.      Note the projected position for the Key Performance Indicators.

3.      Note that Council’s financial position remains sound, however that following the significant impact of Bushfires, 2020 floods and Covid-19, there will be further pressure placed upon Councils unrestricted cash position as a result of significant clean up and repair costs associated with the recent flood event.

4.      Note the list of current projects comprising the Capital Works Program.

5.      Note Council has implemented a range of urgent road repair works following the March 2021 storms to ensure the safety of the Wollondilly community and maintain the integrity of the road network.

6.      Implement the Road Recovery Plan March 2021 including an additional $5.2M investment over the next 4 months in minor and major patching as well as major reconstruction as outlined in this report to address the immediate usability and longer term structural impacts of affected sections of the road network, including:

·              Immediate storm/flood impact management

·              Upgrading of temporary repairs with minor patches

·              Accelerating major patching and asphalt reconstruction works

·              Additional road reconstruction works

·              Revising the Road Works Program for future years to target investment where it’s needed

·              Getting on with the job of the planned 2020/21 Road works Program

·              Additional resources to lead transport and road management.

7.      Allocate the additional $5.2M funding for 2020/21 as follows:

a.      Introduce an additional $3,200,000 from Reserves, namely $1.8m from Infrastructure Projects, $200,000 from Asset Maintenance, $500,000 from Plant Replacement, $400,000 from ELE and $300,000 from the projected Disaster funding from the February 2020 event to fund accelerated capital works and maintenance works.

b.      Introduce an additional $1,153,033 of additional Local Roads & Community Infrastructure funding for allocation to the Road Renewal budget to fund a significant reconstruction  works on the Remembrance Driveway between Tahmoor and Bargo, in addition to the $826,000 included in the December Quarterly Budget Review report for Finns Road and subject to the execution of the funding agreement.

8.      Note that as the Natural Disaster Relief & Recovery Arrangements  will not fully fund these works and that Council will be incurring total additional costs of up to $1,000,000 in the 2020/21 Financial Year that will have an impact on Council’s ongoing budget capacity in the short to medium term.

 

 


 

 

Report

This Quarterly Budget Review reports on the financial progress towards achieving Council’s 2020/21 Operational Plan objectives as at 31 December 2020.

The Quarterly Review also reports on Council's progress towards delivering the Draft Capital Project program 2020/21.  A list of the current projects comprising the 2020/21 Capital Works Program will be tabled.

The Quarterly Budget Review Statement measures Council’s financial health as we progress through the year.  It needs to adequately disclose Council’s overall financial position and provide sufficient information to enable Councillors to make informed and transparent decisions.  It is also a means by which Councillors can ensure that Council remains on track to meet its objectives, targets and outcomes as set out in the Delivery Program and Operational Plan.

The Office of Local Government prescribes the content of the Quarterly Budget Review Statement and the information attached to this report meets these requirements.

 

Summary of Variations

The completion of the December Quarterly review process highlighted the need for a range of adjustments both favourable and unfavourable, resulting in a projected full year deficit of $1.746M (September Review: $283k surplus).

At the highest level this can be summarised by the following points.

·              Additional Operating Grants and Contributions ($1.842M) which is offset by corresponding increases across the various expenditure categories

·              Additional Rates, Charges and Fees ($3.282M) which largely offset additional costs ($3.452M)

·              Adjustment to the full year depreciation forecast to take into account the effects of the asset adjustment as highlighted in the 2020 Audited Financial Statements.

The recent flood event has significantly impacted the road network and the financial implications will be factored into the March Quarterly Review and the 2021/22 Operational Plan. 

Detailed commentary on the Material Variances is outlined below along with the detail of the Road Recovery program and its proposed funding sources.

 

Income

Rates and Annual Charges

As a result of the continued growth in the region and the ongoing development of land additional income in the form of supplementary rates ($606k) is forecast taking the full year projection to $49.347M compared to the original budget of $48.734M.

User Charges and Fees

Increased revenue of $2.676M is projected and is again being driven by the increased level of activity within the Shire, specific items that are forecast to have a significant impact upon the year include,

·              Development Application, Assessment and Compliance fees $1.036M

·              Building Assessment Fees $302k

·              Infrastructure Plan and Checking and Supervision Fees $428k

·              Residential and Commercial tipping Fees $506k.


 

Interest and Investment Revenue

Income from interest and investment revenue is projected to fall by $331k from the September review as a result of the current low interest rate environment and the decision by Council to not actively charge interest on overdue rates and charges for the first half of the year to offset potential hardship impacts of COVID19.

Operating Grants and Contributions

Income from Operating Grants and Contributions is forecast to increase by $1.842M to $9.233M, driven largely by;

·              Funds for the Smart Shires program, $314k

·              Funding for the LEP project, $500k

·              Emergency Services Levy, $301k

·              Infrastructure related funding, $307k.

Expenditure

Employee Costs

Employee costs are projected to increase over the remainder of the year, in part due to a lower allocation of costs to capital projects, in conjunction with increased resource requirements in the development related areas, offset by increased revenue, and increased service requirements for Information Technology and Systems due to customer experience software installation and the impacts of Covid-19.

Materials and Contracts

Expenditure in this category includes the utilisation of grant funds received in a number of areas including:

·    Smart Shires - $314k

·    Community Events and Projects - $101k.

There are also a range of other additional expenditures as a result of the impacts of Covid-19 and continued growth namely:

·    Additional Software and Licence costs - $256k

·    Plant and Vehicle Lease and Maintenance Costs - $176k

·    Staff Development - $62k

·    Business Improvement - $36k.

Expenditure was also impacted by ongoing costs associated with the recovery for the 2020 storm and flood events ($90k) and impacts of the change in management at the Warragamba Pool and the impact of COVID19 upon the operation of the Wollondilly leisure centre ($126k).

There are a range of other increases that were largely offset by decreases across Strategic Planning, Community Engagement, Works, Facilities and Domestic Waste Management.

Consultants

The cost of engaging consultants is projected to increase by $1.89M with the largest single impact being grant funded costs for related to the LEP project ($1.09M) which account for more than 50% of the increase in this category.  As noted above $500k was received in the current year for this project with $1.25M having been received in the previous financial year, resulting in a timing difference between the receipt of the funds and the associated expenditure.


 

Other Expenses

Other expenses are forecast to increase by $227k which includes increases in Insurance premiums ($104k), Utility Charges at the Warragamba Pool and Wollondilly Leisure Centre ($149k) and the impact of Council Rate Relief in relation to bushfire impacts ($70k).  These and other increases are partially offset by a range of favourable variances.

Capital Works Program

The capital works program has been reviewed and updated to factor in the anticipated reduction in Capital Grants and Contributions resulting from the rescheduling of road upgrade works.  Current forecast expenditure stands at $35.875M, although the impact of the recent flood event may see works brought forward from the 2021/22 year, which will likely see the program increase value and place pressure upon funding sources the impacts of which will be factored into the next review.

Cash and Investments

Council continues to hold significant cash and investments with the actual on hand at 31 December standing at $73.407M (Projected Year End: $72.5M), with the funds split across the following categories.

Externally Restricted (Funds to be used for a Specific Purpose)                                $55.597M

Internally Restricted (Funds Council has earmarked for a specific purpose)                   $16.185M

Unrestricted (Funds Available for Councils day to day operating needs)           $1.625M

It is likely that the unrestricted cash position will come under some short term pressure as we absorb the impact of the recent flood event and await the receipt of funds expended on the 2020 flood and storm events.

Key Performance Indicators

There are a range of key performance indicators against which Council can assess its Financial Performance. The table below summarises the performance against those that are included in the attached Quarterly Budget Review Statement.

 

Performance Measure

Benchmark

2021 Projected Result

Commentary

Unrestricted Current Ratio

>1.50x

1.31x

The ratio remains marginally below the benchmark of 1.5x and has been impacted the timing of payments (included in the ratio) relating to externally funded projects (restricted cash excluded from the ratio).

Debt Service Cover Ratio

>2.00x

2.38x

This ratio is projected to remain above the industry benchmark.

Rates, Annual Charges, Interest and extra charges Outstanding

<5.00%

5.93%

The ratio is projected to remain above the benchmark, however it is worth noting that it is trending down from 6.91 as at the end of 2020.

Own Source Operating Revenue

>60.00%

57.2%

The ratio is projected at 57.2% which remains below benchmark but has improved from 50% at the end of 2020.

 

Buildings and Infrastructure Renewals Ratio

>=100%

149%

Positive performance in relation to the benchmark is projected to continue and it will mark the fourth consecutive year in which the benchmark will be achieved.

 

March 2021 Storm Event Road Recovery Program

The recent storm/flood event has had a significant impact on our road assets, which has resulted in a substantial amount of additional unplanned works and the decision to accelerate works to address the immediate structural issues of key roads across the Shire.

Council immediately implemented a range of road repair works to ensure the safety of the Wollondilly community and maintain the integrity of the road network.

The full Road Recovery Plan March 2021 includes an additional $5.2M investment over the next 4 months in minor and major patching as well as major reconstruction to address the immediate usability and longer term structural impacts of affected sections of the road network.

The Plan is already being delivered, and this report seeks endorsement of the additional funding for the 2020/21 Financial Year to enable the major construction works to be carried out.

The Road Recovery Plan covers 7 main areas:

1.      Immediate storm/flood impact management.

2.      Upgrading of temporary repairs with minor patches.

3.      Accelerating major patching and asphalt reconstruction works.

4.      Additional road reconstruction works.

5.      Revising the Road Works Program for future years to target investment where it’s needed.

6.      Getting on with the job of the planned 2020/21 Road works Program.

7.      Additional resources to lead transport and road management.

 

1.      Immediate storm/flood impact management during and continuing after the event; these works include: clearing storm/flood debris from roads that are otherwise safe to use; immediate pavement repairs to make roads useable (fill and move repairs without further excavation etc); erection/removal of barriers to close roads or define safe paths of travel; assessments of bridges that were subjected to flood flows; implementing and maintaining longer term road closures on roads (with alternative access routes) that require designed repair works e.g. Big Hill Road.

These works are expected to cost at least $400,000, with temporary repairs continuing into early May as we need to address the key access roads as the highest priority due to the impacts on the broader community.

We will be claiming these costs under the Natural Disaster Relief & Recovery Arrangements; however, the costs are being incurred in this financial year, funding is unlikely to be received until future financial years and it is likely that only a proportion of the claims will be approved. Hence, Council will have to forward fund the works and receive the repayments under a future budget cycle.


 

2.      Upgrading of temporary repairs with small patches (including excavation of material and squaring up the damaged pavement areas). The focus is on maintaining the usability of the pavement until the site is programmed for more permanent and expensive pavement reconstruction works under a revised Transport Capital Works Program. Also undertaking design works for significant pavement issues such as on Big Hill Road so a detailed disaster recovery application can be made. Finally, large scale clearing and repair works to provide access to isolated locations e.g. the currently closed Colong Stock Route.

These works are estimated to cost up to $800,000 with only a small proportion being recoverable under the Natural Disaster Relief & Recovery Arrangements; however, all costs are being incurred in this financial year and funding is unlikely to be recovered until future financial years. Hence, Council will have to forward fund all of the activities in the 2020/21 Financial Year from Internally Restricted Cash Reserves and receive any repayments under a future budget cycle.

3.      Accelerating major capital works for the patching and asphalt reconstruction of roads from the Transport Capital Works Program from years 2021/22 through to 2023/24 into the current Financial Year.

These projects will consist of large scale asphalt reconstruction works to improve the structure of the road pavements to make them suitable for resurfacing. These works are being undertaken on key access routes such as Werombi Rd, Cobbitty Rd, Remembrance Drvwy, Woodbridge Rd, Montpelier Rd and Thirlmere Way.  In the future years of the Transport Capital Works Program, the final wearing course will be applied over the reconstructed sections.

These works are estimated to cost up to $2,000,000 with only a small proportion being recoverable under the Natural Disaster Relief & Recovery Arrangements; however, the costs are being incurred in this financial year and any funding is unlikely to be received until future financial years. Hence, Council will have to forward fund all of the activities in the 2020/21 Financial Year from Internally Restricted Cash Reserves and receive any repayments under a future budget cycle

These reconstruction projects are accelerating works that were fundable under the Special Rate Variation i.e. Roads; and the Internally Restricted Cash Reserves will be used to forward fund the SRV with future years of the capital program being adjusted as rates are received to repay the Reserves such that the Reserves are available for their intended uses.

4.      Additional road reconstruction works, The Australian Government Local Roads & Community Infrastructure Program funds will be sought for a total of $1.98 million to fund pavement reconstruction works on Finns Road, Cawdor and the Remembrance Driveway, Bargo. If approved, this program allows the accelerated delivery of a further $1.98 million of works that from the future years.  If approvals are received in time, the pavement works can be completed in the current financial year.

5.      Revising the Road Works Program for future years to target investment where it’s needed. As a part of the regular asset condition assessment process, the roads across the Shire were assessed in early 2021 to inform updates to the Transport Capital Works Program.  Unfortunately, the March storm/flood event has had a significant impact on the condition of our roads and we are having to reassess a number of keys sites.  Nonetheless, as a part of the annual capital works planning process and the Road Recovery Plan, a revised Roads program is on track to be brought to Council for adoption in June 2021.

6.      Getting on with the job of the planned 2020/21 Road works Program – The 2020/21 Road Works Program has re-commenced and is on track to being delivered as originally funded.


 

 

7.      Additional resources to lead transport and road management. Acknowledging the impacts of 4 natural disasters since 2016, which have had a significant impact on our roads and our people, we continue to ramp up the application of funds and planning to improve the road network. Subject to the considerations of the 2021/20 Operational Plan and budget, we are planning to invest in additional resources to lead management of all of our transport and road planning and management and increased works programmes over the coming years.

 

Road Recovery Program Summary:

The 2021 Road Recovery Plan

 

Work type

Estimated Cost

1

The immediate storm costs (fill & move, debris clean ups, make safe activities, temporary closures etc)

$400,000

2

Upgrading the temporary repairs (remove pothole repairs and replace with small patches, design works for significant works, large scale clearing works e.g. Colong Stock Route)

$800,000

3

Accelerating capital works from beyond 2020/21 - heavy patching & reconstruction work to prepare for new wearing course on key collector roads (Werombi, Cobbitty, Remembrance, Woodbridge, Montpelier, Thirlmere Way)

$2,000,000

4

Additional works Finns Rd  in May subject to external funding approval

$880,000

5

Additional works Remembrance Drvwy in  June subject to  external funding approval

$1,100,000

 

s/total

$5,180,000

 

Existing programmed works

 

6

 e.g  Silverdale Rd safety upgrades program

$300,000

 

s/total

$300,000

 

Total

$5,480,000

 

Funding the Road Recovery Program:

The Road Recovery Program has already started and, due to the impacts on the community, needs to be continued, even though Natural Disaster Relief & Recovery Arrangements funding will not be received until future financial years and part of the program is accelerated capital works from future years.

Accordingly, Council will have to fund the entire program from existing cash reserves and receipt grant funding and future rates to repay the reserves over time to ensure the reserves are available to fund other programmed works in later years.


 

Funding for the program is available to be brought forward from Internally Restricted Cash Reserves as follows:

Road Recovery Plan Funding Sources

Amount

Reserve

 

Infrastructure Projects

 $           1,800,000

Asset Maintenance

 $              200,000

Plant Replacements

 $              500,000

ELE

 $              400,000

sub-total

 $           2,900,000

Projected additional Revenue for expected 2020/21 returns from the February 2020 disaster

 

expected 2020/21 returns from the February 2020 disaster

 $              300,000

sub-total

 $              300,000

Total

 $          3,200,000

 

Consultation

All members of the Executive and Senior Management have had input into the production of this budget review.

Financial Implications

The QBRS provides Council and the Community with information in relation to Council’s projected financial position.  Having regard to the projected budget estimates and the original budget the overall financial position of Council can be described as sound. However it needs to be closely monitored in the short to medium term as the impacts of storm and flood events in the 2020 and 2021 calendar years place ongoing pressure on Councils resources.    

Details of the proposed budget variations for the second quarter of the 2020/21 financial year are provided in the attached Quarterly Budget Review Statement for the period ending 31 December 2020.

A copy of the QBRS and the current list of projects comprising the 2020/21 Capital Works Program will be placed on Council’s website.

Attachments

1.      December 2020 Capital Works Program

2.      December 2020 Quarterly Review   


Ordinary Council Meeting Agenda

20 April 2021

 







Ordinary Council Meeting Agenda

20 April 2021

 

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