Agenda of Extra Ordinary Meeting

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 1

CL17.146 Community Engagement Report- Integrated Strategic Plan

HPERM Ref: D17/171856

Group: General Manager's Group

Section: Executive Strategy

Attachments: 1. Community Engagement Report Integrated Strategic Plan (under separate cover) ⇨

Purpose / Summary

To provide a report on the community engagement process undertaken for the Integrated Strategic Plan and the feedback received from the community.

Recommendation

That Council:

1. Receive the ‘Community Engagement - Integrated Strategic Plan’ report for Information

2. Advise the community of the outcomes of the community engagement process

3. Thank the community for their participation and feedback in the engagement process

Options

1. Adopt the recommendation as printed

Implications: This will allow for the community engagement report to be supported by Council

2. Adopt an alternative recommendation

Background

On the 28^th March 2017 Council resolved to:

1. Endorse the Community Engagement Strategy for the CSP Review

2. Undertake community engagement for four weeks commencing April 1^st 2017

An extensive community engagement process was undertaken for the Integrated Strategic Plan. Over 200 community members participated in the process in some form either online or face to face. Over 3000 comments/responses were received from the community. These have directly influenced the development of the Integrated Strategic Plan. The methods and tools utilised in the engagement process and the feedback are provided in detail in Attachment A

The consultation process conducted from the 10^th April until the 27^th May 2017 involved two distinct stages. These stages included engagement on:

· Stage 1 -Key Priorities

· Stage 2- Goals and Actions (DPOP), Budget and Fees and Charges (including proposed rates variation)

· Stage 2 (a) Nowra Pool

· Stage 2(b) Family Day Care

Purpose of Engagement

The strategy sought to:

· provide all parts of the community with the opportunity to be informed about and have the opportunity to be involved in the review of the Community Strategic Plan.

· utilise effective and innovative communication and community engagement methods to reach our stakeholders.

· ensure the Shoalhaven Community Strategic Plan reflects the long-term vision and priorities of the community.

· seek to engage with the “hard to reach” where possible to seek a wide range of community views.

Engagement Methods

Multiple engagement methods including digital and face to face options were provided throughout the process. The engagement methods and communication tools utilised in the process are detailed in Attachment A.

A high level of community understanding and awareness of the project was observed throughout the process.

Results

The community outlined that key areas of focus for the future are:

· Infrastructure development (particularly roads)

· Protection of the environment

· Opportunities for employment

· Transport

· Pathways and cycleways

· Green waste

· Tourism (both management of and attraction to)

· Sustainable development

· Responsible governance and communication

The responses received showed that the top three most important priorities were:

· Continually improving our road and transport infrastructure

· Showcase and protect the natural environment

· Manage and plan sustainable development

· Active healthy and liveable communities

Full details of the results are found within the Community Engagement Report provided as Attachment 1 of this report.

Policy Implications

The outcomes of the community engagement process have directly influenced the:

· Chapter 1- Community Priorities

· Chapter 2- DPOP Actions and Goals

· Resource allocation in the resourcing strategy

· Budget priorities and capital works projects

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 4

CL17.147 Chapter 1 Integrated Strategic Plan - Community Strategic Plan - Priorities

HPERM Ref: D17/171858

Group: General Manager's Group

Section: Executive Strategy

Attachments: 1. Chapter 1 - Integrated Strategic Plan - Our Priorities (under separate cover) ⇨

Purpose / Summary

The purpose of this report is to:

· Provide specific detail about the community feedback provided for Chapter 1- Integrated Strategic Plan- Community Priorities.

Detail the way in which this feedback has influenced the finalisation of the ChapterSeek Council’s adoption of Chapter 1 of the Integrated Strategic Plan.

Recommendation

That Council endorse Chapter 1 - Integrated Strategic Plan - CSP - Community Priorities and include additional graphic design elements following adoption.

Options

1. Adopt the recommendation as printed

Implications: This will enable Council to meet the legislative requirements of the Integrated Planning and Report Framework.

2. Make further amendments to Chapter 1- Integrated Strategic Plan- CSP- Community Priorities and adopt the amended CSP.

Implications: will depend on the extent of the changes and any financial or other outcomes.

Background

In accordance with the Integrated Planning and Reporting Framework, Council is required to have a Community Strategic Plan that includes the community’s priorities (objectives) for the next 10 years. The plan is also required to contain strategies for the next 10 years to meet these priorities. The Integrated Planning and Reporting Legislation also requires that a community engagement process is carried out to seek the communities feedback about their priorities for the future.

This engagement has now been undertaken and the outcomes of the community’s feedback is detailed within the Community Engagement Report provided as Attachment 1 to CL17.146 of this business paper.

As part of this engagement process the community were asked to review ten priorities which formed a key component of the CSP. These ten priorities were developed from previous engagement with the community and discussions with Councillors.

The priorities exhibited included:

Theme
People	A city that builds inclusive, safe and connected communities Activated communities through arts, culture and events Active, healthy liveable communities
Place	Continually improving our road and transport infrastructure Manage and plan sustainable development and design Showcase and protect the natural environment
Economy	Attracting, retaining and growing business and partnerships Maintaining an innovative and robust economy and vibrant towns and villages
Stewardship	Reliable services that meet daily community needs Strong leadership and advocacy through effective government

The feedback received from the community about the priorities and other aspects of Chapter 1 is detailed in the commentary below.

Community Feedback – Chapter 1- CSP

Community Feedback- Themes

The community indicated that the themes provided as part of the engagement (People, Place, Economy and Stewardship) did not have much meaning. They indicated that they would like additional detail within the themes to assist in setting the future direction of Council.

Staff Comment/ Proposed Changes

To meet the requirements of the IP&R framework and the feedback provided by the community it is proposed for the four themes to be enhanced through additional explanation. This will provide a more meaningful explanation of the community’s focus/priorities for the next 10 years and help to improve readability and relevance of the document.

Several the changes have come directly from community submissions or words used within comments provided by the community. The changes are proposed to be as follows:

Theme
People	Resilient, safe and inclusive communities
Place	Sustainable, liveable environments
Economy	Prosperous communities
Stewardship	Responsible governance

Community Feedback -Priorities

Feedback on the priorities showed that the community generally accepted all the priorities presented. The community comments clearly show that the future direction that they envision for the City and their areas of interest were provided within the priorities presented. The top three priorities for the community included:

· Continually improving our road and transport infrastructure

· Manage and plan sustainable development

· Showcase and protect the natural environment

Priority 10 - Attracting, retaining and growing business and partnerships was not considered by the community to be Council’s responsibility and they did not accept this as a future priority for Council. However, employment was important and showed clearly through the community engagement process. This has been addressed in the changes detailed below.

Staff Comment/ Proposed Changes

Several changes were made to the priorities to enhance readability of the document and include comments received from the community. These changes are explained below:

Priority exhibited	Proposed Change following Community Engagement	Reason for Change
A city that builds inclusive, safe and connected communities	Build inclusive, safe and connected communities	Simplified, no change to meaning
Activated communities through arts, culture and events	Activate communities through arts, culture and events	Active verb, no change to meaning
Active, healthy liveable communities	Support active and healthy communities	Action statement, no change to meaning
Continually improving our road and transport infrastructure	Improve and maintain road and transport infrastructure	Active verb and maintain added to make it more specific
Manage and plan sustainable development	Plan and manage appropriate and sustainable development	Should Plan before we manage, appropriate added to make the priority more specific
Showcase and protect the natural environment	Protect and showcase the natural environment	Protection of the natural environment is more important them showcasing
Attracting, retaining and growing business and partnerships	Removed	3.1 and 3.2 were combined to create one Priority for Prosperous Communities. Feedback stated that this priority was not seen as Council’s responsibility
Maintain an innovative robust economy and vibrant towns and villages	Maintain and grow a robust economy with vibrant towns and villages	3.1 and 3.2 were combined to create one Priority for Prosperous Communities
Reliable services that meet daily community needs	Deliver reliable services	Wording simplified
Strong leadership and advocacy through effective government	Provide advocacy and transparent leadership through effective government and administration	Additional words to better capture internal Council services
Strong leadership and advocacy through effective government	Inform and engage with the community about the decisions that affect their lives	Feedback requested responsible governance and improved communication and engagement

Community Comment – Overall CSP chapter

There were several comments received from the community seeking additional detail to be provided within the CSP chapter. Explanation about the principles used to develop the document, linkages to state plans and more defined measures and outcomes were key community comments.

Staff Comment /Proposed Changes

There are several additional sections that have been added to the draft chapter following the engagement process. Additional detail relating to measures, principles and state plans have been added to the chapter. Additional detail relating to the IP&R framework has also been added. Review of consistency with the requirements of the IP& R framework has also been undertaken to further enhance the chapter.

Additional sections include:

· Inclusion of further detail within the introduction of the chapter

· Addition of principles

· Addition of charts and graphs to explain IP&R framework

· Refinement of measures and indicators

· Inclusion of section on state and regional plans

These additions are highlighted in blue within Attachment 1 of this report.

Community Engagement

A comprehensive community engagement process was undertaken for this Chapter and is detailed within CL17.146 of this business paper.

Policy Implications

The changes highlighted within this report will impact upon Chapter 1 of the Integrated Strategic Plan and have been included to further meet the requirements of the IP&R framework and community needs resulting from the engagement process.

The themes and priorities featured within this chapter directly influence the goals and actions contained within the DPOP which is provided as Chapter 2 of the Integrated Strategic Plan.

This chapter sets the future direction for council for the next 10 years and clearly outlines the community’s priorities for the future. This plan is delivered by Council, but also needs to be delivered by the community, the State Government and other stakeholders.

The themes and priorities within the plan and the ways in which these are used to guide the goals and actions of Council will be reported back to the community through Council’s Annual Community Report and end of term report.

Financial Implications

Chapter 1 of the Integrated Strategic Plan sets the direction of Council and identifies the community’s top priorities. This directly influences Councils budget and capital works program through the DPOP goals and actions.

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 8

CL17.148 Chapter 2 Integrated Strategic Plan- DPOP - Goals and Actions

HPERM Ref: D17/175021

Group: General Manager's Group

Section: Executive Strategy

Attachments: 1. Chapter 2 - Integrated Strategic Plan- DPOP-Goals and Actions (under separate cover) ⇨

The purpose of this report is to:

· Provide specific detail about the community feedback provided for Chapter 2- Integrated Strategic Plan- DPOP-Goals and Actions.

Detail the way in which this feedback has influenced the finalisation of the ChapterSeek Council’s adoption of Chapter 2 of the Integrated Strategic Plan.

Recommendation

That Council adopt Chapter 2- Integrated Strategic Plan- DPOP- Goals and Actions and include additional graphic design elements following adoption.

Options

1. Adopt the recommendation as printed

Implications: This will enable Council to meet the legislative requirements of the Integrated Planning and Report Framework.

2. Adopt “Chapter 2- Integrated Strategic Plan- DPOP- Goals and Actions” with additional additions or amendments to reflect the priority aims of council.

Implications: The DPOP is to reflect the goals & actions council wishes to achieve over the next 4 years (broad goals) and I year (specific actions). Councillors need to ensure that the DPOP reflects what it wishes to achieve.

Background

In accordance with the Integrated Planning and Reporting Framework, Council is required to have a Delivery Program and Operational Plan that includes Council’s activities for the next four years and activities for the next year. The Integrated Planning and Reporting Legislation also requires that a community engagement process is carried out to seek the communities feedback about Council’s proposed CSP and DPOP.

Council has placed the DPOP on exhibition for a period of 28 days to seek the community’s feedback on this document. This year the DPOP has been broken into several separate chapters to enable the community to clearly understand Council’s future direction, allocation of budget and the activities that will be undertaken by Council in the coming years.

The reports provided within this business paper have also been broken into separate sections to clearly show the community how their feedback has been received and addressed within each chapter of the document.

These reports also enable Council to understand the proposed changes within each chapter resulting from the engagement process and to consider each of these changes within this engagement context.

This report provides details of the feedback received from the community on the actions and goals outlined within the DPOP – Chapter 2 of the Integrated Strategic Plan. Comments received from the community about the Budget, Capital works, Fees and Charges are detailed in following reports contained within this business paper.

Community Feedback – Chapter 2- DPOP- Goals and Actions

The DPOP needs to reflect community expectations and be adjusted to acknowledge the feedback received from the community about their future priorities. To ensure the DPOP was representative of community feedback received, several internal staff workshops were held to review and adjust the DPOP - Chapter 2 accordingly.

Each of the comments provided by the community were reviewed and considered as well as the overall results and priority allocations. The changes to the community priorities and additions of detail to the themes was also considered.

Additional changes were also made to ensure the document was more readable in terms of providing additional improvements to “Plain English “text. The additions of actions or goals for areas of community interest that had not been covered were also included.

The amended draft Chapter 2 is provided as Attachment 1 to this report. Additions and changes have been identified within the document in blue.

The proposed changes are summarised as follows:

· Addition of goals and actions to meet community feedback

· Significant rewording of goals and actions to improve readability and community understanding

· Rewording of goals and actions to provide consistency throughout the document

· Addition of goals and actions to meet changes to priorities and themes

· Addition of further explanation and introduction at the beginning of the chapter

· Internal staff changes to better reflect business operations

· Consolidation of goals and actions to reduce overall number

Written Submissions

The community feedback provided as part of the entire Integrated Strategic Plan engagement process is outlined in detail in Report CL17.146 – Community Engagement of this business paper. Specific submissions related to this chapter have been provided within this report.

As part of the exhibition process eight (8) external and internal submissions were received for this chapter. These submissions are summarised in table 1 below. Copies of each of these submissions, are provided in the Councillor Information folder. These submissions were addressed within Chapter 2 through additions and changes to the goals and actions are provided in Attachment 1.

Table 1: Submission Summary

No.		Submission	Response
1	staff	Changes to the draft DPOP document - staff submission	Changes made to the document
2	staff	Changes to the draft DPOP document- staff submission	Updates made to CSP and DPOP, as requested by Strategic Planning.
4	staff	Additional Goal and Action added to cover the Disability Inclusion Action Plan	Updates made to CSP and DPOP, as requested
5	staff	Review and implement Asset Management Plans for coastal, flood, bushfire, walking tracks and estuary assets and include climate change risk assessment and adaptation strategies where possible.	Updates made to CSP and DPOP, as requested
6	staff	Changes to draft DPOP document - staff submission	Details the changes made to the R,C & C section of the draft DPOP
7	staff	DP/OP goal and actions that will enable the Economic Development Office to actively pursue any opportunities that may come up through the Smart Cities suite of programs and other new technologies.	Changes made to the document
8	Anonymous	The language you have chosen to use in this ridiculously lengthy document is often biased, vague and/or meaningless. I have lived and worked in the Shoalhaven for 10 years and know that the literacy rates for the majority of this area mean that they are unable to follow your outline. Is this a deliberate attempt to stifle our voices? Don't pretend you don't know this. If you really want to know what we think about things ask us in a respectful and meaningful way or don't bother, for at least we will know where we stand. This is an insult to our intelligence and a waste of our time and more importantly a missed opportunity to gain trust and obtain valuable information for our communities future. And you want us to pay more $$$ for it. Its not the $bill I mind, its the cowardly way in which you express your entitlement - or rather, dont.	Points taken into consideration in review of the draft Integrated Plan, i.e plain English changes made

Community Engagement

A comprehensive community engagement process was undertaken for this Chapter and is detailed within CL17.146 of this business paper.

Policy Implications

The changes highlighted within this report will impact upon Chapter 2 of the Integrated Strategic Plan and have been included to further meet the requirements of the IP&R framework and community needs resulting from the engagement process.

This chapter sets the future direction for council for the next 4 years and clearly outlines the community’s goals and actions for the future.

Financial Implications

Chapter 2 of the Integrated Strategic Plan sets the direction of Council and the actions to be taken and is resourced through the Resourcing Strategy, Budget and Capital works program.

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 12

CL17.149 Special Rate Variation- IPART Decision

HPERM Ref: D17/172590

Group: General Manager's Group

Section: Executive Strategy

Purpose / Summary

To provide Council with the outcome of the special rate variation to IPART and seek the adopting of a 13.2% special rate variation for the 2017/18 financial year.

Recommendation

Council adopt a Special Rate Variation of 13.2% including the rate peg of 1.5% for the 2017/18 Financial Year

Options

1. Adopt the recommendation as printed

Implications: This will allow Council to apply these additional funds to high priority maintenance and renewal projects and other areas as identified in the Special Rate Variation application and the draft DP/OP that has been exhibited.

2. Adopt an alternative recommendation

Implications: Not approving the Special Rate Variation or approving a lesser amount, will significantly reduce the on ground works that will be able to be undertaken in the next 12 months. The renewal and maintenance works have continuously been identified by the community as their number one priority for additional action by Council.

Background

At its 1 February 2017 Extraordinary Meeting, Council considered an extensive report following the community engagement and resolved (MIN17.71) to proceed with a Special Rate Variation. Subsequently an application was made to IPART to seek approval for this variation. The application to IPART explained that the SV for a general rate increase was to cover infrastructure maintenance and renewal, maintenance of services and to ensure the financial sustainability of the council. A secondary purpose was to levy a special rate on the Verons Estate subdivision to pay for necessary road and bushfire safety infrastructureOn the 9 May 2017, IPART determined Council’s Special Rate Variation Application and found that:

“After assessing the council’s application, we decided to allow the special variation in part, on a one year temporary basis. We have made this decision under section 508(2) of the Act.”

“We determined that Shoalhaven City Council may increase its general income in 2017-18 by 13.2%, including the rate peg of 1.5% that is available to all councils (see Table 1.1). The SV can be retained in the council’s general income base for one year and is to be removed from the council’s rate base in 2018-19.”

The IPART decision enables Council to:

· begin its planned program of infrastructure maintenance and renewal

· continue its current level of services to the community

· begin addressing the Verons Estate infrastructure requirements, and

· begin improving its financial sustainability

The report also stated that:

“The council did not update its IP&R documents to include the full SV increase sought prior to applying to IPART. Therefore, we have not approved a permanent increase in general income. However, the council did demonstrate a clear need for additional revenue to ensure its financial sustainability and to fund increased infrastructure maintenance and renewal. Our decision is to allow, on a temporary basis, the first year of the council’s SV request. This decision allows the council to continue to execute its Delivery Program in 2017-18 while updating its IP&R documentation and reapplying to IPART in future years if it wishes for a rate increase to be permanently incorporated in its general income base.”

The additional income from the special variation must be used for:

“the purposes of improving financial sustainability, funding capital expenditure, reducing the infrastructure backlog and providing the necessary fire safety and road infrastructure for Verons Estate as outlined in the council’s application and listed in Appendix A” of the IPART report.

The report also stated that the impact is reasonable given the council’s existing rate levels, its history of special variations, the purpose of the special variation and indicators of the community’s capacity to pay.

Community Engagement

The special rate variation proposal was the subject of a comprehensive community engagement process. The methods utilised within this engagement and the feedback received from the community was provided in the IPART application.

In the report to Council IPART specified that:

“Council provided evidence the community is aware of the need for, and extent of, the rate rise. It used a variety of strategies to inform the community, although it provided little detail about how the additional revenue would be spent. There were sufficient opportunities for community feedback, and the council considered the community’s views”

Financial Implications

The adoption of the Special Rate Variation will provide Council with an additional $7.1M for the 2017/18 financial year to undertake works/activities as identified in the application.

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 14

CL17.150 Chapter 3 Integrated Strategic Plan - Revenue Policy - Making of Rates and Charges

HPERM Ref: D17/172616

Group: General Manager's Group

Section: Executive Strategy

Purpose / Summary

Provide Council with suggested responses to the submissions received, as part of the public exhibition of the draft Integrated Strategic Plan 2027, about Council’s Revenue Policy, so that rates and charges can be made by Council in accordance with the legislative requirements of the Local Government Act 1993.

Recommendation

That Council resolve to make rates and charges in accordance with Section 535 of the Local Government Act 1993:

1. Make an Ordinary Rate, consisting of an ad valorem rate of 0.21684c for each dollar of rateable land value in addition to a base amount of five hundred and eighty dollars ($580.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Residential”, in accordance with Section 516, for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(1), this rate be named “RESIDENTIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of five hundred and eighty dollars ($580.00) per rateable assessment for the “RESIDENTIAL” category will not produce more than 50% of the total amount payable by the levying of the “RESIDENTIAL” rate in accordance with Section 537(b) [base amount percentage is 49.93%]

2. Make an Ordinary Rate, consisting of an ad valorem rate of 0.31581c for each dollar of rateable land value be made on all rateable land in the City of Shoalhaven, in accordance with Section 518 of the Local Government Act 1993: “Land is to be categorised as ‘business’ if it cannot be categorised as farmland, residential or mining”. Excepting all rateable land in the sub categories of Commercial/Industrial and Nowra, an ordinary rate be now made for the period of 1 July 2017 to 30 June 2018 and, in accordance with Section 543(1), this rate be named “BUSINESS”.

3. Make an Ordinary Rate, consisting of an ad valorem rate of 0.18836c for each dollar of rateable land value in addition to a base amount of five hundred and eighty dollars ($580.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Farmland”, in accordance with Section 515, for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(1), this rate be named “FARMLAND”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of five hundred and eighty dollars ($580.00) per rateable assessment for the “FARMLAND” category will not produce more than 50% of the total amount payable by the levying of the “FARMLAND” rate in accordance with Section 537 (b) [base amount percentage is 24.75%].

4. Make an Ordinary Rate, consisting of an ad valorem rate of 0.21684c for each dollar of rateable land value in addition to a base amount of forty three dollars ($43.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land in the City of Shoalhaven which is zoned so as not to permit any building (i.e.; Small Lot Rural Subdivisions) and categorised as “Residential”, in accordance with Section 516, sub category “NON-URBAN”, in accordance with Section 529(2)(b), for the period 1 July 2017 to 30 June 2018.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of forty three dollars ($43.00) per rateable assessment for the “RESIDENTIAL NON-URBAN” category will not produce more than 50% of the total amount payable by the levying of the “RESIDENTIAL NON-URBAN” rate in accordance with Section 537(b) [base amount percentage is 42.98%].

5. Make an Ordinary Rate, consisting of an ad valorem rate of 0.66515c for each dollar of rateable land value in addition to a base amount of five hundred and eighty dollars ($580.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land in the City of Shoalhaven determined to be a centre of activity and categorised as “Business”, in accordance with Section 518, sub-category “NOWRA”, in accordance with Section 529(1), for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(1), this rate be named “BUSINESS NOWRA”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of five hundred and eighty dollars ($580.00) per rateable assessment for the “BUSINESS NOWRA” sub category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS NOWRA” rate in accordance with Section 537(b) [base amount percentage is 15.79%].

6. Make an Ordinary Rate, consisting of an ad valorem rate of 0.30467c for each dollar of rateable land value in addition to a base amount of five hundred and eighty dollars ($580.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land in the City of Shoalhaven used or zoned for professional/commercial trade or industrial purposes, determined to be a centre of activity and categorised as “Business”, in accordance with Section 518, sub category “COMMERCIAL/INDUSTRIAL”, in accordance with Section 529(1), for the period of 1 July 2017 to 30 June 2018.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of five hundred and eighty dollars ($580.00) per rateable assessment for the “BUSINESS –COMMERCIAL/INDUSTRIAL” category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS – COMMERCIAL/INDUSTRIAL” rate in accordance with Section 537(b) [base amount percentage is 29.98%].

7. Make an Ordinary Rate, consisting of an ad valorem rate of 0.09590c for each dollar of rateable land value in addition to a base amount of five hundred and eighty dollars ($580.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Farmland” sub category “DAIRY FARMERS”, in accordance with Section 515 AND 529(2)(a), for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(1), this rate be named “FARMLAND” sub category “DAIRY FARMERS”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of five hundred and eighty dollars ($580.00) per rateable assessment for the “FARMLAND –DAIRY FARMERS” category will not produce more than 50% of the total amount payable by the levying of the “FARMLAND – DAIRY FARMERS” rate in accordance with Section 537(b) [base amount percentage is 32.26%].

8. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 1.08993c for each dollar of rateable land value in addition to a base amount of two thousand six hundred and seventy four dollars ($2,674.00), for the cost of road upgrades required to enable property owners to develop their allotments in the Veron’s estate. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties with building entitlement within the Veron’s estate which, in the opinion of Council, derive special benefit and are subject to this rate, in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(2), this rate be named “VERON’S ROAD UPGRADE SPECIAL RATE – WITH BUILDING ENTITLEMENT”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two thousand six hundred and seventy four dollars ($2,674.00) per rateable assessment for the “VERON’S ROAD UPGRADE SPECIAL RATE – WITH BUILDING ENTITLEMENT” will not produce more than 50% of the total amount payable by the levying of the “VERON’S ROAD UPGRADE SPECIAL RATE – WITH BUILDING ENTITLEMENT” in accordance with Section 537(b) [base amount percentage is 49.98%].

9. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.23668c for each dollar of rateable land value in addition to a base amount of two hundred and ninety seven dollars ($297.00), for the cost of the road upgrades in the Veron’s estate. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties without building entitlement within the Veron’s estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(2), this rate be named “VERON’S ROAD UPGRADE SPECIAL RATE – WITHOUT BUILDING ENTITLEMENT”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two hundred and ninety seven dollars ($297.00) per rateable assessment for the “VERON’S ROAD UPGRADE SPECIAL RATE – WITHOUT BUILDING ENTITLEMENT” will not produce more than 50% of the total amount payable by the levying of the “VERON’S ROAD UPGRADE SPECIAL RATE – WITHOUT BUILDING ENTITLEMENT” in accordance with Section 537(b) [base amount percentage is 49.84%].

10. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.17395c for each dollar of rateable land value in addition to a base amount of one hundred and twenty one dollars ($121.00) for the cost associated with the Nebraska road construction project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Nebraska estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(2), this rate be named “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of one hundred and twenty one dollars ($121.00) per rateable assessment for the “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ROAD E2 SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.98%].

11. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 3.16405c for each dollar of rateable land value in addition to a base amount of two thousand five hundred and fifty four dollars ($2,554.00) for the cost associated with the Jerberra road infrastructure project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Jerberra estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(2), this rate be named “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two thousand five hundred and fifty four dollars ($2,554.00) per rateable assessment for the “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE” in accordance with Section 53 (b) [base amount percentage is 49.98%].

12. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 1.06697c for each dollar of rateable land value in addition to a base amount of eight hundred and sixty dollars ($860.00) for the cost associated with the Jerberra electricity infrastructure project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Jerberra estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(2), this rate be named “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of eight hundred and sixty dollars ($860.00) per rateable assessment for the “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.95%].

13. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 7.75712c for each dollar of rateable land value in addition to a base amount of six hundred and forty five dollars ($645.00) for the cost associated with the Jerberra Road E2 infrastructure project. In accordance with Section 495(1) the special rate is to be levied only on those rateable properties within the Jerberra estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(2), this rate be named “JERBERRA ROAD E2 SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of six hundred and forty five dollars ($645.00) per rateable assessment for the “JERBERRA ROAD E2 SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ROAD E2 SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.97%].

14. Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.03244c for each dollar of rateable land value to meet the costs of business promotions for the Sussex Inlet area and surrounds, in accordance with Section 495(1), which in the opinion of Council is of special benefit to the rateable assessments subject to the rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2017 to 30 June 2018 and, in accordance with Section 543(2), this rate be named “SUSSEX AREA SPECIAL RATE”.

15. Make an Annual Charge for Water Usage and Water Availability, in accordance with Section 502 and 552(1) (a) and (b), for the period 1 July 2017 to 30 June 2018, comprising a Water Usage Charge of $1.70 per kilolitre for all residential, commercial and Community Service Obligation categorised properties and a Water Availability Charge based on water meter size:

Size of Water Meter Service Connection	Charge 2017/18
20 mm (all residential customers)	$82.00
25 mm	$129.00
32mm	$211.00
40mm	$330.00
50mm	$515.00
80mm	$1,318.00
100mm	$2,060.00
150mm	$4,635.00
200mm	$8,240.00

Properties with multiple water meter service connections will be levied an availability charge for each connection. In accordance with Section 552 of the Local Government Act 1993, any vacant land where the service is available will be levied an availability charge.

The charges be named “WATER USAGE CHARGE” and “WATER AVAILABILITY CHARGE”, in accordance with Section 543(3).

16. Make an Annual Charge for Wastewater Usage and Wastewater Availability, in accordance with Section 502 and 552(3), for the period 1 July 2017 to 30 June 2018, comprising a Wastewater Usage Charge of $1.60 per kilolitre for all residential, commercial and Community Service Obligation categorised properties and a Wastewater Availability Charge based on water meter size:

Size of Water Meter Service Connection	Charge 2017/18
20 mm	$830.00
25 mm	$1,161.00
32mm	$1,775.00
40mm	$2,355.00
50mm	$3,320.00
80mm	$6,855.00
100mm	$9,822.00
150mm	$16,922.00
200mm	$26,252.00

Properties with multiple water meter service connections will be levied a wastewater availability charge for each connection. In accordance with Section 552 of the Local Government Act 1993, any vacant land where the service is available will be levied an availability charge.

The charges be named “WASTEWATER USAGE CHARGE” and “WASTEWATER AVAILABILITY CHARGE”, in accordance with Section 543(3).

17. Make an Annual Charge for the availability of a Domestic Waste Management Service, pursuant to Sections 496 and 501 of the Local Government Act 1993, for the period 1 July 2017 to 30 June 2018, on all rateable properties categorised as residential for rating purposes and comprising of a building which is deemed to be a dwelling and located within the defined (urban) waste collection area.

The amount for the standard residential domestic waste management service be $333 for one 120 litre mobile garbage bin (MGB) for landfill waste (weekly service) and one 240 litre MGB for recycling (fortnightly service).

In accordance with Section 543(3), the charge be named “DOMESTIC WASTE MANAGEMENT CHARGE”.

18. Make an Annual Charge for a Rural Domestic Waste Collection Service, pursuant to Sections 496 and 501 of the Local Government Act 1993, for the period 1 July 2017 to 30 June 2018, on rateable properties comprising of a building which is deemed to be a dwelling and located outside of the defined (urban) waste collection area, and opt for the rural domestic waste collection service.

The amount for the rural domestic waste collection service be $333 for one 120 litre mobile garbage bin (MGB) for landfill waste and one 120 litre MGB for recycling (weekly service). For a higher annual charge of $584, the 120 litre landfill bin may be substituted for a 240 litre landfill bin. For a lower annual charge of $252, the 120 litre landfill bin may be substituted for an 80 litre landfill bin.

In accordance with Section 543(3), the charge be named “RURAL DOMESTIC WASTE COLLECTION CHARGE”.

19. Make an Annual Charge, pursuant to Section 496 of the Local Government Act 1993, for the period 1 July 2017 to 30 June 2018, of $67.00 per assessment for administration and new works associated with future provision of domestic waste management services. The charge to be applied to any domestic assessments which have any boundary adjacent to a road receiving an urban domestic waste management service and

1. Does not have a dwelling situated thereon, or

2. The closest point of the dwelling is 100 metres or more from the boundary of the road and the ratepayer chooses not to receive a domestic waste management service.

In accordance with Section 543(3), the charge be named “NEW WORKS WASTE MANAGEMENT AVAILABILITY CHARGE”.

20. Make an Annual Charge for Stormwater Management Services, pursuant to Section 496A of the Local Government Act 1993, for the period 1 July 2017 to 30 June 2018, of $25.00 per eligible residential or business rate assessment and $12.50 per strata assessment. In accordance with Section 543(3), the charge be named “STORMWATER MANAGEMENT SERVICE CHARGE”.

21. Make an Interest Rate of 7.5%, pursuant to Section 566(3) of the Local Government Act 1993, for the period 1 July 2017 to 30 June 2018, being the maximum interest rate chargeable on overdue rates and charges, accruing daily on a simple interest basis.

Options

1. To endorse the recommendations for the making of ordinary and special rates and annual charges

Implications: Rates and charges will be adopted as required by legislation.

2. Not endorse the recommendations and make rates in accordance with Council’s resolution on the rate increase to be adopted following their consideration of Report CL17.146

Implications: Finance to update the Long Term Financial Plan, Delivery Program and Operational Plan (including the 2017/18 Budget and Capital Works) in line with Council’s resolution.

Background

In November 2016, the Independent Pricing and Regulatory Tribunal (IPART) set the 2017/18 rate peg at 1.5%. To fund asset renewals, reduce its maintenance backlog and improve financial sustainability, Council applied to IPART for a multi-year Special Variation, under Section 508(2) of the Local Government Act 1993, of 13.2% in 2017/18 and 14.0% in 2018/19.

The draft Integrated Strategic Plan 2027 was placed on public exhibition from 28 April 2017 to the 26 May 2017, not being less than 28 days, in accordance with Sections 404(4) & 405(3) of the Local Government Act 1993. On 9 May 2017, IPART approved only a one-year temporary increase of 13.2% in the rate base due to the failure of Council to align its Integrated Planning & Reporting (IP&R) documents with its Special Variation proposal.

Following publication of the Delivery Program and Operational Plan, in accordance with Section 532 of the Local Government Act 1993, a submission was made to include a rating structure in the Integrated Strategic Plan – Revenue Policy that is in line with both the Special Variation approved by IPART and the latest 2016 land valuations data. Council has considered the submission and a revised rating structure for 2017/18 for ordinary and special rates is presented below:

In accordance with Sections 534 and 535 of the Local Government Act 1993, Council can resolve to make rates and charges for the 2017/18 financial year.

Community Engagement

A comprehensive community engagement process was undertaken for this Chapter and is detailed within CL17.146 of this business paper.

Policy Implications

The changes highlighted within this report will impact upon Chapter 3 of the Integrated Strategic Plan 2027 and have been included to further meet the requirements of the IP&R framework and community needs resulting from the engagement process.

Financial Implications

The adoption of the full Special Variation approved by IPART in its rating structure will provide Council with an additional $7.1M for the 2017/18 financial year to fund asset renewals, reduce its maintenance backlog and improve financial sustainability.

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 21

CL17.151 Swim and Fitness Service Levels - Nowra Aquatic Park - DPOP Community Engagement Outcomes

HPERM Ref: D17/173148

Group: General Manager's Group

Section: Executive Strategy

Attachments: 1. Comments - Winter Swimming Community Engagement Survey - May 2017 ⇩

Purpose / Summary

To provide Council with the results of the survey undertaken as part of the overall DPOP consultation for Shoalhaven Swim & Fitness (Bomaderry Aquatic Centre and Nowra Aquatic Park)

Recommendation

That Council:

1. Within the Shoalhaven Swim & Fitness area, maintain the operation of:

a. Bomaderry Aquatic Centre 25 metre indoor pool – all year

b. Bomaderry Aquatic Centre 50 metre outdoor pool – all year

c. Nowra Aquatic Park become a seasonal pool, ie, operate 1 November until 31 March each year – note closing 30 June 2017

d. To be funded within existing 2017/18 budgets and ongoing

2. Receive the results of the survey for Shoalhaven Swim & Fitness (Bomaderry Aquatic Centre and Nowra Aquatic Park) for information.

Options

Option 1 - As recommended - this will result in Nowra Aquatic Park closing at end of June

Implications

· Nowra Aquatic Park will not be available for training squads or recreational swimming from March to November each year. These groups will need to make use of the Bomaderry facility as they did previously.

· There are also costs associated with ‘holding’ the pool in a dormant state during this period. These will be covered in the projected 2017/18 budget

· Maintains the previous “level of service” for these facilities

· This option does not leverage community benefits that could be gained from investments made in improving Nowra Aquatic Park

Option 2 - Council can choose to open both facilities for twelve (12) months of the year by reinstating $313,000 subsidy from efficiency gains.

Implications

· These costs have not been factored into the 2017/18 draft budget and will either need to come from a reduction in other areas or increasing the projected budget deficit.

· Council needs to form the position that an increase of its operational budget of this amount is warranted and that the extension of the opening hours of the Nowra Aquatic Park is the highest priority for these additional funds

· The community survey results do not provide evidence that increasing service levels for Swim & Fitness facilities is a high priority;

Option 3 - Consider a transition from the two (2) 50 metre outdoor pools to a single 50 metre outdoor pool as the Bomaderry 50 metre pool becomes too expensive to repair / maintain. This would see the decommissioning of the Bomaderry 50 metre outdoor pool in the next 5 years.

Implications

The implications will depend on the actual timing and costs of the decommissioning.

Background

At its meeting held on 28 March 2017, Council made the following resolution (Min17.237):

1. Undertake a comprehensive Community Engagement Process in plain English to outline the proposed six (6) options for summer and winter swimming in the northern Shoalhaven (Bomaderry Aquatic Centre and Nowra Aquatic Park) as outlined in this report. That this consultation seek the community’s views, including swimming community members, on which is the preferred option taking into consideration all factors including service level provision and costs. This be undertaken as part of the DPOP consultation and be reported back to Council as part of the budget process.

2. Upon receipt of the feedback, determine which option of the six considered it will fund in future budgets.

This resolution was actioned through the provision of an online survey as part of the DPOP community engagement process. Hard copy surveys were also provided on request at all Swim & Fitness Centres and information displays at Council administration buildings and via the “Get Involved” page on Council’s website.

As yet, Council has not made a determination on the future of winter swimming in the northern Shoalhaven. In considering the future direction of Bomaderry Aquatic Centre, the condition of the asset and, in light of Council’s recent adoption of the Bomaderry Nowra Regional Sports & Community Precinct Master Plan, Council will need to consider transitioning in preparation for development into the regional hub.

The Master Plan aims to improve the quality of facilities in the location, by integrating facilities and improving their utilisation and status for long term sustainability and growth of active and passive recreation and social activities, co-located to provide a community and tourism destination.

It should be noted that the Master Plan does not include a 50 metre outdoor pool and will result in the closure of the existing Bomaderry Aquatic Centre 50 metre outdoor pool. Whilst not including timeframes for design or construction, this may assist Council in providing a transitional pathway towards closure of the Bomaderry 50 metre outdoor pool.

The Bomaderry Aquatic Centre 50 metre outdoor pool has been identified as being near the end of its serviceable life. Further, there are also works required to be undertaken to the indoor 25 metre pool and overall amenity of the indoor building structure. These factors need to be taken into consideration when considering any extension to historic and future service levels.

All planning and provision principles/measures clearly indicate it is financially unsustainable to maintain both the Nowra Aquatic Park and Bomaderry Aquatic Centres, ie, only 3.0 kilometres, two (2) outdoor 50 metre heated pools. The issue of the oversupply of 50m pools particularly in the northern area of the city was highlighted in the Community Social Infrastructure Plan (Ross Report).

Therefore, a single outdoor 50 metre pool in the northern Shoalhaven, particularly at least in the winter months, more than adequately meets the recreational training needs of the northern Shoalhaven community.

Council may consider a transition from the two (2) 50 metre outdoor pools to a single 50 metre outdoor pool as the Bomaderry 50 metre pool becomes too expensive to repair / maintain. This would see the decommissioning of the Bomaderry 50 metre outdoor pool in the next five (5) years.

Based on established planning and provision principles of one (1) local aquatic facility per 10,000 to 40,000 people and one (1) district aquatic facility per 40,000 to 70,000 people, the provision of one (1) 50 metre swimming pool is meeting the benchmarks and is capable of servicing and meeting the needs of the northern Shoalhaven community now and well into the future.

Throughout many Local Government Areas within NSW, there are few Councils which have invested as much as Shoalhaven in terms of social infrastructure, specifically aquatic / leisure facilities. Such large social and financial investments are rarely seen, even in metropolitan areas with much larger populations.

Community Engagement

An extensive community engagement process was carried out for the Integrated Strategic Plan, incorporating both the CSP and DPOP. This project was considered as Citywide High Impact and, in accordance with the Community Engagement Policy, sits within the area of Consult, as per the IPA2 spectrum.

Details of the engagement methods and communication tools used within this process are provided in the Community Engagement Report - Integrated Strategic Plan – refer Attachment 1 of CL17.146 of this business paper. Details of the participation and submissions received, as part of the overall engagement process, are also provided in the engagement report. Specific engagement outcomes related to this report are provided below.

Community Survey

A specific survey on levels of service and the future of Bomaderry Aquatic Centre and Nowra Aquatic Park was recently carried out as part of the DPOP community engagement process. A specific Winter Swimming Survey on the proposed six (6) options was provided, detailing the impacts of each option and potential costs.

The community was asked to select their preferred option out of the six (6) options presented. A section to provide additional comment was also available within the survey.

At present, Council’s Shoalhaven Swim & Fitness facilities enjoy a patronage of in excess of 700,000 visits per year from a population of approximately 100,000 and 3.3Mil annual tourists. From this, a total of 109 survey responses were received City wide during the engagement process. An additional 53 individual comments were also received which are provided as Attachment 2 to this report.

The very low number of responses provided were mixed, with Option 1, 2 and 3 featuring as the most preferred option by those surveyed. A breakdown of the results is provided below:

Options - Survey Results Swim and Fitness		Number of Responses
1	Increase services by retaining the existing Bomaderry Aquatic Centre facilities open all year and open Nowra Aquatic Park all year - ADDITIONAL NET COST $159,000	36
2	Retain the status quo, ie, keep Bomaderry Aquatic Centre facilities open all year and keep Nowra Aquatic Park open for the summer season only - COST WITHIN EXISTING BUDGETS	31
3	Increase services at Nowra Aquatic Park to open all year and decrease facilities at Bomaderry Aquatic Centre by closing the 50m outdoor pool in winter 25m indoor pool would remain open all year - ADDITIONAL NET COST $144,000	31
4	Increase services at Nowra Aquatic Park to open all year and reduce Bomaderry facilities by closing the 50m outdoor pool permanently Bomaderry would still have a 25m indoor heated pool open all year - ADDITIONAL NET COST $123,000	7
5	Open Nowra Aquatic Park for the summer season only and decrease Bomaderry facilities by closing the 50m outdoor pool permanently Bomaderry would still have a 25m indoor heated pool open all year - ADDITIONAL NET COST $19,000	2
6	Reduce services and only open both Nowra Aquatic Park and the Bomaderry 50m outdoor pool in summer - ADDITIONAL NET COST $50,000	2

In considering the possible increase of operational budget, Council needs to be mindful of the very low number of responses to the survey. These responses should also be seen in relation to the overwhelming responses from multiple community surveys that the community want more operational funds spent on roads, parks and building maintenance and renewals. In considering a possible opening of Nowra Aquatic Park for the full 12 months, Council should form the opinion that this is the highest community / Council priority for increasing its operational expenditure.

Financial Implications

Current Financial Position – Nowra Aquatic Park

Nowra Aquatic Park was originally budgeted to operate (2016/17 year) for 9 months only with a subsidy of $496,605. This would have seen the facility close at the end of March this year. Given the strong summer and efficient management, Nowra Aquatic Park will remain open until the end of June with its existing budget.

Across all other Shoalhaven Swim & Fitness facilities (excluding Nowra Aquatic Park), efficiency gains have already been factored into the next Budget, ie, for the 2017/18 financial year. This has resulted in a saving of $111,000 (reduced budget subsidy). It should be noted that this also takes into account wage increases of 2.4%.

With the proposed transition from nine (9) to six (6) month operation for the upcoming 2017/18 season and other operational efficiencies, Nowra Aquatic Park’s Budget has been reduced by $313,000. This has resulted in a total reduction in the overall Swim & Fitness Subsidy of $424,000.

It is important to note that, as Nowra Aquatic Park is only budgeted to operate for six (6) months in the 2017/18 financial year at a subsidy of $84,000, should Council wish to operate the facility for a full twelve (12) months, an additional $313,000 subsidy will need to be reinstated from the stated efficiency gains. Operating the NAP over winter has great operational costs and lower income hence the size of the budget required.

Financial Implications of the Recommendation

The recommendation will have no financial implications as these costs are in the current draft budget.

Financial Implications – Option 2

Should Council wish to “Increase services by retaining the existing Bomaderry Aquatic Centre facilities open all year and open Nowra Aquatic Park all year”, Council will need to fund an additional six (6) month operation at Nowra Aquatic Park, by reinstating $313,000 subsidy from efficiency gains as stated above.

As highlighted in the Option 2 Implications, Council needs to form the position that an increase of its operational budget of this amount is warranted and that the extension of the opening hours of Nowra Aquatic Park is the highest priority for these additional funds.

Financial implications – Option 3

These costs will be totally dependent on the timing of the decommissioning and the costs associated with this work, however opening for the next 12 months will require reinstating $313,000 subsidy from efficiency gains as stated above.

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 34

CL17.152 Family Day Care Services - DPOP Community Engagement Outcomes

HPERM Ref: D17/173153

Group: General Manager's Group

Section: Executive Strategy

Purpose / Summary

The purpose of this report is to provide Council with the results of the consultation undertaken, as part of the overall Integrated Strategic Plan engagement process, for Family Day Care.

Recommendation

That Council:

1. Receive the results of the survey for Family Day Care Services for information

2. Continue to work towards meeting the performance targets to improve services Family Day Care provides and report back in April 2018 when more clarity around federal funding is available.

Options

1. Adopt the recommendation as printed

Implications: The feedback provided by the community shows that there is ongoing support for this service. The survey also showed that the community participating in the survey are willing for the service to be subsidised by Council.

The recommendation is consistent with the approach adopted by Council in March 2017 and ensures that continued efforts will be made to meet the performance targets set for this service to deliver this service as cost neutral to Council and the ratepayers.

2. Adopt an alternative recommendation

Background

On 28^th March 2017, Council resolved that:

1. Council receive the report for information on the consultation process with affected staff, Educators and Families and feedback regarding potential transfer of the Shoalhaven Family Day Care Service to a suitable provider for information.

2. Council adopt performance targets to improve services it provides and report back in April 2018 when more clarity around federal funding is available.

3. As part of the public exhibition/community engagement period for the draft 2017/18 DP/OP council specifically gain feedback on the matter of ‘ratepayer subsidy’ for the FDC service.

4. Council acknowledge that high quality child care services are a fundamental responsibility of the Federal Government and acknowledge that the current service of the Family Day Care Service reaches an exceeding level and congratulate the staff and the educators for that high-level recognition.

5. Council continue to lobby the Federal Government for Federal Government support and funding.

This report provides results of the actions carried out to meet part 3 of MIN17.235.

Community Engagement

An extensive community engagement process was carried out for the Integrated Strategic Plan, incorporating both the CSP and DPOP. This project was considered citywide high impact and in accordance with the Community Engagement Policy sits within area of consult as per the IPA2 spectrum.

Details of the engagement methods and communication tools used within this process are provided in the Community Engagement Report- Integrated Strategic Plan (Attachment 1 of CL17.146 of this business paper). Details of the participation and submissions received as part of the overall engagement process are also provided in the engagement report. Specific engagement outcomes related to this report are provided below.

Community Survey

As part of the community engagement carried out in April/May 2017 for the Integrated Strategic Plan, a specific survey on the future of the Family Day Care Services was provided. This survey was available on Council’s online community engagement platform and was available in hard copy, on request, through Family Day Care and Council administration centres.

The survey sought a response to three options, which could be selected if the funding for the service was to cease. It focused on identifying whether the community supported continued funding of the service by Council once the Federal funding had ceased, or, the service to be transferred to another service provider, or a combination of measures.

The community were asked to select only one of the options (out of the three (3) options) that they preferred. A section to provide additional comment was also available within the survey.

A total of 53 survey responses were received during the engagement process. An additional 27 individual comments were also received; these are provided as an Attachment to this report.

The Option 3: “Council to continue to subsidise the service and run it at a net loss at an estimated cost of approximately $136,000 per year” was the preferred option provided by the survey respondents. This would be a new expense to Council who will be underwriting the cost of the service once the Federal funding ceases. A breakdown of the results is provided in table 1 below.

Table 1: Survey Results - Family Day Care

If funding ceases, which of the following is your preferred option for the future of the service?
Option 1 - Transfer the service to another provider via an Expression of Interest	11
Option 2- A combination of measures including increased childcare fees improved administrative and operational efficiencies and an increased number of educators to make sure the service is self-funded	11
Option 3- Council to continue to subsidise the service and run it at a net loss at an estimated cost of approximately $136,000 per year	31

Financial Implications

The withdrawal of Federal funding to assist in the delivery of Family Day Care Services will have resulting budget implication for Council of at least $136,000 (dependant on enrolment numbers). The additional funding that will need to be found if Council is to continue to coordinate this service will increase the overall operating deficit of Council.

The current direction set by Council provides the opportunity for the service to address this situation. The report in April 2018 will allow Council to review progress in this regard.

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 37

CL17.153 Chapter 4 Integrated Strategic Plan- DPOP Fees and Charges

HPERM Ref: D17/173158

Group: General Manager's Group

Section: Executive Strategy

Purpose / Summary

To meet Council’s obligations under the Local Government Act 1993 – Section 532 by providing an Operational Plan which describes Council’s Revenue Policy and includes its proposed fees and charges.

Recommendation

That:

1. Council adopts the Fees, Charges and Rentals 2017-2018 as advertised with the changes as detailed in this report.

2. The new fees not previously advertised as detailed below be advertised for 28 days and adopted after this time, with any submissions being reported to Council.

Options

1. Council decide to adopt the Fees, Charges and Rentals document 2017 – 2018 with the recommended changes as detailed below

Implications: Nil

2. Council decide to adopt an alternate recommendation.

Implications: Further work will be required

Background

Council received 13 submissions relating to the document - draft Fees and Charges and Rentals.

Submissions

A summary of feedback and suggested changes is below:

1. Hall hire for CCB meetings

Request to have the hall hire for CCB meetings subsidised

Response

Council provides funding to assist CCB’s in meeting any expenses connected with their operation and this includes costs associated with venue hire.

2. North Nowra Community Centre

Request to change the fees for the Centre as requested by the Management Committee

Response

Update fees as requests

3. Temporary Food Stall Fee

Concerns at the increase of the fee and requesting Council to rethink the increase and/or make a provision for pension/concession card holders.

Response

The fee for a twelve month mobile food approval is $230. This is an increase from $115 in previous years. This fee had not been increased for many years and did not account for the costs of delivering the service. This fee still does not cover full cost recovery of implementing the program, conducting inspections and assessment and issue of approvals. This approval permits operation of the mobile food stall anywhere in the City at approved locations for a twelve month period.

4. Callala Beach Community Centre

Request to change the fees for the Centre as requested by the Management Committee

Response

Update fees as requested

4. Greenwell Point Memorial Community Hall

The management committee requested changes; after discussions between the committee and Council staff, the following changes are recommended

Response

Update fees as recommended

5. Leisure Centre Membership Fees

Concerns at the choice of memberships available and that a different type be considered to just include gym classes.

Response

The current level or suite of memberships is adequate, meeting the majority of needs of users. Adding additional memberships leads to complexities and devaluing of many memberships. Memberships are holistic providing members with access to all areas rather than selected areas of the centre.

6. Internal Submission – S603 certificate

The Office of Local Government has determine the fee for S603 certificates is to be $80

Response

Amend cost of S603 certificates to $80.

7. Learn to Swim

Concerns that the learn to swim fees are too low, providing evidence of what is being charged in other areas. Suggested that, if the price in increased, this will assist with funding winter hours at a pool.

Response

Learn to swim fees are market tested annually prior to fees being adopted by Council. Fees are set mid-range and, typically, impacted by CPI increases and industry benchmarks. Winter swimming hours are not determined by programs offsetting costs; at present, all facilities capable of operating during winter are open to the public.

8. St Georges Basin Community Centre

The meals on wheels fee wasn’t increased as per the Management Committee’s recommendation in 2016/17, this increase provides a catch up.

Response

Update fee as requested

9. Burrill Lake Community Hall

The management committee recommends the following change.

Response

Update fee as requested

10. Internal Submission – Application for Exemption from Barrier Requirements

This is a new fee to be charged under the Swimming Pools Act. The Act specifies that the maximum amount that can be charged is $70.

Response

Charge the fee of $70 per application

11. Berry Showground

The management committee requested the following changes.

Response

Update fee as requested

Community Engagement

A comprehensive community engagement process was undertaken for this Chapter and is detailed within CL17.146 of this business paper.

Financial Implications

The Council’s Fees, Charges and Rental Document has a significant impact on Council’s revenue. It is, therefore, important to ensure the right pricing structures are in place to ensure optimum recoveries are in place accounting for community obligations as well.

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 42

CL17.154 Chapter 5 Integrated Strategic Plan-Budget and Capital Works

HPERM Ref: D17/173162

Group: General Manager's Group

Section: Executive Strategy

Attachments: 1. Funding Requests Not Included ⇩

Purpose / Summary

Provide Council with details on submissions received during the exhibition period and suggested responses and budget impact.

Recommendation

That Council adopts Chapter 5 of the Draft Integrated Strategic Plan – Budget and Capital Works with the changes as detailed in this report.

Options

1. Council decide, after considering all submissions, to adopt Chapter 5 of the Draft Integrated Strategic Plan – Budget and Capital Works with the changes as detailed in this report.

Implications: Nil

2. Council decide, after consideration of all submissions, to adopt Chapter 5 of the Draft Integrated Strategic Plan – Budget and Capital Works as exhibited with no changes

Implications: Nil

3. Council decide, after consideration of all submissions, to adopt Chapter 5 of the Draft Integrated Strategic Plan – Budget and Capital Works as exhibited with the changes as detailed in this report plus additional amendments.

Implications: Nil

Background

Shoalhaven City Council’s Integrated Strategic Plan has been on exhibition for 28 days from 28 April 2017. The plan sets out how Council will work with the community to achieve its priorities over the life of this elected Council and describes the key actions that will help achieve these priorities.

Submissions Received

A number of requests for additional funding were for local issues over and above Council’s current maintenance regime or capital works program and, if these were to be included in the budget, then other areas would suffer. Below is a summary of the issues raised and Council’s responses:

1. Narang Road Tennis Courts – the club can provide $50,000 of the $165,000 required to replace the old tennis court lights with new LED lights.

Response

A 'budget bid' was submitted for an additional $115K of the $165K needed for this project. It is recommended to fund $50,000 from the Tennis Minor Improvement Program and $65,000 from the deferral of Paringa Park Masterplan design

2. Master Plan for the Berry District Park – Council received 27 submissions in support of the Berry District Park along with requesting the project be funded initially for $165,000 to enable a detailed design to be undertaken.

Response

In response to the Council resolution MIN 16.791, Council’s Social Infrastructure & Planning staff have been working with the Berry District Park Working Group (BDPWG) to finalise the Berry District Park Master Plan and to assist progress through to completion of a detailed design. The Master Plan options have been developed and the preferred option will be presented to the community at the Berry Forum meeting on 8 June, after which it will be reported to Council for adoption. In anticipation of the next phase (development of the detailed design), the BDPWG have requested $165,000 of Council funds in the 2017/18 budget, to allow for completion of the detailed design and, if possible, commence some works. Please also note: the Berry Rotary have $100,000 they are prepared to contribute to the construction of the park, once the detailed designs have been approved.

3. Internal Submission – Various Capital Projects moved into 2017/18 from the March Quarterly Budget Review and other recommended movements

During the March Quarterly Budget Review, the following project was resolved to be moved to 2017/18:

· Ulladulla Harbour Berthing Facility

Expenditure $1,139,742,

Grant Revenue $750,000,

Economic Development Projects Reserve $389,742

Council Minutes that will impact the 2017/18 budget:

· SA17.119 – part year rating

Additional rate income $232,000

Additional staff expenditure $73,000

· Min17.340 – Sustainable Futures Committee

No funding identified

· Min17.194 – Citizens Panel

No funding identified

· Min17.353 – Nowra Showground Patrols

No funding identified

· Min17.353 – James Cres Kings Point Rate Payers Advance

Transfer $8,480 from Kerb and Gutter Replacement Program to this capital project

Other Amendments:

· Capital Project – Roads Tree Planting

Move this to operating as the work is operating in nature and not capital

Response

Only include the items in the 2017/18 budget where they are cost neutral or have a positive impact on the budget.

4. Dent Street passive watercraft area – support for the plans outlined

Response

The Dent Street passive watercraft area has already been funded and will be constructed from the 2016/17 budget allocation.

5. Berry Estate Trails – request to allocate funding

Response

Council allocated $10,000 to the Berry Estate Trails Project during 2016/17. Most of these funds will be carried over into 2017/18 for this project.

6. Collingwood Beach dune vegetation management plan – request to carry forward unspent funds ($52,000) from 2016/17 and allocate an additional $68,000 in 2017/18

Response

Remaining 2016/17 budget should be revoted. $30,000 for implementation allocated in draft 2017/18 budget.

7. Collingwood Beach improved stormwater – request to install signs for stormwater erosion at the beach access track, improve stormwater to reduce beach erosion and engage consultants on the best options to reduce erosion at a cost between $15,000 and $20,000.

Response

Currently not funded.

8. Pathways and Cycleways in Vincentia – create pathways on feeder roads

Response

Currently, only path projects attracting grant funds have been included in the 2017/18 budget. Feeder street paths would not qualify for grant funding.

9. Plantation Point Reserve – plumbing and flooding issues

Response

The amenities are located on low-lying land and redevelopment of the area is required to improve the issues associated with the current facilities. Minor works are unlikely to resolve the issues and major improvements are currently unfunded. The concrete slab, pathway and stormwater piped away from the toilet block will be investigated and considered for the 2018/19 Drainage Program

10. Plantation Point Reserve – construct additional shelter

Response

There was a new BBQ installed in the last six months along with new exercise equipment. No further works have been identified or budgeted. Submission noted as part on any future works

11. Pedestrian refuge in Elizabeth Drive – install refuge at the intersection of Elizabeth Drive and Berry St Vincentia.

Response

Pedestrian counts were taken over the 2016/17 holiday period. These counts showed that a pedestrian refuge was not yet warranted. However, counts will be repeated in future years to assess growth in pedestrian movements.

12. Vincentia Village Mall upgrades – request for council to seek and identify areas for beautification and upgrade and allocate funds in 2017/18

Response

There is no current streetscape design or budget for upgrading the Vincentia Mall.

13. Water Filling Station – request for one to be installed at the Vincentia Village Shopping Centre in Burton St and complementary sign posting

Response

Shoalhaven Water has a program of connecting water filling stations to a range of public areas across the city and this program aims to install at least three units per year. There is no intention to cease this program. Currently, however, the priority is to provide at least one water filling station to each village area and Vincentia already has a unit installed at Plantation Point. It is not expected that the roll out of second units at each area will begin until 2019 but the request has been retained for further discussion when this occurs. Please note that other interested parties from the area will also be invited to discuss the preferred location of a unit at that time. As an alternative, Shoalhaven Water can enter into a partnership arrangement to jointly fund (50%) the installation of a unit with any community organisation. This arrangement would require payment of approximately $6,500 and does not include ongoing maintenance which would be funded solely by Shoalhaven Water. Should this option be of interest, Shoalhaven Water can be contacted.

14. Bayswood Village pathways to Bay and Basin Leisure Centre and Collingwood Beach to provide inclusive access for disabled people

Response

These entry and exit points can be addressed using current Road Maintenance budget.

15. Provide a safer area for disabled people and others on the share pathway at the intersection of Illfracombe Ave and Elizabeth Drive at the corner on the approach to the bridge over Moona Moona Creek

Response

This area can be addressed using current Road Maintenance budget.

16. Provide lifesaving facility at Collingwood Beach during the school holiday period

Response

The provision of professional lifeguarding services would cost approximately 40k for the suggested period. A watchtower (dependent on design) would be in excess of 60k. Should a decision be made to extend the current level of beach patrol services in the Shoalhaven, other beaches would be seen as a higher priority.

17. Internal Submission – Works on Woodhill Mountain Road to be brought forward as the pavement is rapidly deteriorating.

Response

Recommended changes will made to the Road renewals allocations within the draft budget limits.

18. Jacobs Drive, Sussex Inlet Streetscaping from the entrance way at LJ Hooker through to the end of Jacobs Drive.

Response

Allocate the $500,000 from the Streetscape renewal in the Special Rate Variation projects to this project.

19. Internal Submission – request to increase the expenditure budget for the Ulladulla Civic Centre due to the Council minute not being included in the budget

Response

Increase the expenditure budget by $105,000 noting this will have a negative effect on the budget.

20. Internal Submission – various adjustments recommended by Assets and Works

Amend Proposed Special Various Projects for the 2018/19 year

Transfer the Buildings and Facilities capital budget on Watt Street Huskisson to Nowra Administration Building to replace ceilings, renew fire hydrants and fire control system systems to meet outstanding BCA requirements.

Correct project name

· In the Special Rates Variation projects, the project titled Beach Road, Callala Beach, should be Callala Beach Road, Callala Beach.

· Rename North Nowra Link Road in 2017/18 to Northern Collector Road and in the future years to Nowra Strategic Roads

Allocate Waste Management Capital to projects

The $6,338,387 reported in the capital works program for waste management be allocated to the following projects:

Additional Project

Add a project for the rehabilitation of 76 Bridge Road for $50,000 to the capital works program to be funded from the Land Decontamination Reserve.

Worrigee Road

Reduce the Worrigee Road Local Road Repair Project in 2017/18 by $150,000 and return these funds to the Plant and Fleet Replacement Reserve.

Response

Incorporate these suggested changes in the budget.

21. Stormwater drainage problem near 74 Elizabeth Drive Vincentia, request to include in the capital works program.

Response

A drainage investigation can be undertaken within the existing budgets. The need for drainage capital works will be assessed for the 2018/19 program.

22. Maintenance issues at Bayswood.

Response

The Parks Maintenance budget will be considered for an increase, if the Special Rate Variation is approved. Service levels could be increased for a number of locations and Bayswood can be considered in this review.

23. Min17.421 – Local Government Remuneration Tribunal determination 2017/18.

Response

Adjust the budget to reflect the annual Councillor and Mayoral fees for 2017/18 to $19,310 and $42,120 respectively.

24. Donation allocation – Council allocated donations for 2017/18:

Helping the Homeless Soup Kitchen $6,380

Lay Missionaries of Charity Soup Kitchen $4,227

Response

Allocate these donations from the Uncommitted Donations.

25. Additional donations to add to the other programs, these are funded within the current budget.

Reserve and Building hire fee waivers - $29,500

Shoalhaven Entertainment Centre – sponsorship of cultural organisations $80,000, ticket donations to charities $1,000

Vacation Play Centre – providing school holiday programs $5,000

Mobile Pre-School – operating costs of two vehicles $25,388

Nowra Youth Centre – minor operating costs of a vehicle $1,750

Library – prize give aways $1,000

Community Development – gift cards to support: International Youth Day awards; Neighbourhood Day; Youth coasties festival $2,000

Response

Add these to the donations other programs.

Suggested changes to Budget:

As an outcome of the feedback received from the community and staff during the exhibition period, along with Council Minutes subsequent to the exhibition period, it is recommended to make the following changes to the budget:

1. Narang Road Tennis Court Lighting

Recommend to include the project in 2017/18 with an expenditure budget of $165,000 - funded from Tennis Minor Improvement Program $50,000, deferral of Paringa Park Master Plan $65,000 and the sporting facilities reserve $50,000

2. Ulladulla Harbour Berthing Facility

Recommend to include the project in 2017/18 with an expenditure budget of $1,139,742 - funded from grant $750,000 and the economic development reserve $389,742

3. Part year rating

Recommend to increase the general rates income budget in 2017/18 by $232,000 and with an additional salary expenditure budget of $73,000. With similar income increases in the future years and the continuation of the salary expenditure budget.

4. Jacobs Drive Streetscape

Conditional on the full amount of the Special Rate Variation being passed by Council, recommend to allocate the $500,000 for streetscape renewal as proposed in the Special Rate Variation on this project in 2017/18.

5. Woodhill Mountain Road

Recommend the following changes to the 2017/18 Local Road Repair Capital Works Program

Reduce Kinghorne Street $180,000

Reduce Prince Edward Ave $280,000

Increase Woodhill Mountain Road $460,000

Recommend the following changes to the 2018/19 Local Road Repair Capital Works Program

Reduce Woodhill Mountain Road $200,000

Increase Kinghorne St $200,000

6. James Crescent Kings Point Kerb and Gutter Ratepayers Advance

Recommend that $8,480 be transferred to the James Crescent Kings Point Ratepayer advance project from the Kerb and Gutter Replacement Program

7. Roads Tree Planting

Recommend that capital budget for Roads tree planting of $48,000 be moved to operating expenditure

8. Ulladulla Civic Centre

Recommend that operating expenditure budget for the Ulladulla Civic Centre is increased by $105,000

9. Proposed Second Year Special Rate Projects

Recommend that $300,000 of the proposed second year SRV capital renewal be transferred from Watt St Huskisson to Nowra Administration Building

10. Name Changes

Recommend that the projects listed at item (20) above have their names changed

11. Waste Management

Recommend that the Waste Management capital program is allocated to the following projects:

12. Rehabilitation of 76 Bridge Road

Recommend to add the Rehabilitation of 76 Bridge Road in Nowra to the capital works program for $50,000 to be funded from the land decontamination reserve.

13. Worrigee Road

Recommend to reduce the capital budget for Worrigee Road by $150,000, returning the funds to the plant and fleet replacement reserve.

14. Councillor and Mayoral Fees

Recommend to adjust the budget to reflect the annual Councillor and Mayoral fees for 2017/18 to $19,310 and $42,120 respectively.

15. Donation Allocation

Recommend to adjust the Operating Plan to reflect the allocation of the uncommitted donations vote for the following two items: $6,380 helping the homeless soup kitchen; $4,227 Lay Missionaries of Charity soup kitchen.

16. Donations other programs

Recommend to add the following to the donations other programs on the Operational Plan:

· Reserve and Buildings fee waivers $29,500

· Shoalhaven Entertainment Centre $81,000

· Vacation Play Centre – $5,000

· Mobile Pre-School – $25,388

· Nowra Youth Centre – $1,750

· Library – $1,000

· Community Development – $2,000

Funding Requests Not Included

An update of the “Funding Requests Not Included” is attached. This is an extensive list and obviously, there are implications arising, some of which relate to capacity of the organisation to deliver timely services, others relate to various works and projects that will be delayed or simply not achieved.

However some items reported to Council in April have been funded and others have been removed; below is a list of changes that are recommended to the 2017/18 budget.

Bid ID	Description	Budget Change Recommended
Cap 01	Tipping Trailer	+ Capital Expenditure $10,000 + From Plant Reserve $10,000
Cap 02	Water Carts	+ Capital Expenditure $330,000 + From Plant Reserve $330,000
CAP 19	Operational Vehicle for SMF team	+ Capital Expenditure $35,514 + Operating Income $35,514
Cap 39	Ulladulla Admin Air Conditioning	+ Cap Exp – Ulladulla Admin $35,000 - Cap Exp – K&G renewals $35,000
Cap 41	Cemetery expansion – segment 11	2018/19 + Capital Expenditure $200,000 + Loans $200,000 2019/20 + Capital Expenditure $238,000 + Loans $238,000
Cap 43	Nowra Admin pump station design	+ Cap Exp – Nowra Admin $20,000 - Cap Exp – K&G renewals $20,000
Cap 46 Op 28	Planner / Building Surveyor	+Capital Expenditure $30,000 + Operating Expenditure $113,343 + Operating Income $143,343
Cap 48 Op 18	Plumbing and Drainage Officer	+Capital Expenditure $28,000 + Operating Expenditure $91,538 + Operating Income $119,538
Op 1	Water Quality at ponds in Council Parks	+ Operating Expenditure $40,000 + From Land Decontamination Reserve $40,000
Op 13	Dismantle obsolete cremator	+ Operating Expenditure $7,500 + Operating Income $7,500
Op 23	Development Assessment Officer	+ Operating Expenditure $8,618 + Operating Income $8,618
Op 21	Accounts Payable additional part time	+ Operating Expenditure $49,543 (fund from additional part year rating income)
Op 32	Art Collection Valuation	+ Operating Expenditure $7,000 + From Insurance Reserve $7,000
Op 39	Online community engagement	+ Operating Expenditure $30,000 (fund from additional part year rating income)

Community Engagement

An extensive community engagement process was carried out for the draft Integrated Strategic Plan 2027, incorporating both the CSP and DPOP. This project was considered citywide high impact and in accordance with the Community Engagement Policy sits within area of consult, as per the IPA2 spectrum.

Details of the engagement methods and communication tools used within this process are provided in the Community Engagement Report- Integrated Strategic Plan (Attachment 1 of CL17.146 of this business paper). Details of the participation and submissions received, as part of the overall engagement process, are also provided in the engagement report. Specific engagement outcomes related to this report are provided above.

Financial Implications

Chapter 5 of Council’s Integrated Strategic Plan is a critical document that allocates funding towards works and services by Council to its community. It enables the many programs and services provided by Council to be adequately resourced. The additional rate revenue for 2017/18 will allow council to delivery more works in line with community expectations. It is proposed to report to council later in the year to consider the question whether a further application to IPART will be supported to enable the continued program of improving and renewing the extensive network of community infrastructure and assets across the City.

Extra Ordinary Meeting – Tuesday 13 June 2017

Page 54

CL17.155 Chapter 6 Integrated Strategic Plan - Resourcing Strategy

HPERM Ref: D17/179451

Group: General Manager's Group

Section: Executive Strategy

Attachments: 1. Shoalhaven City Council Resourcing Strategy 2017-2021 (under separate cover) ⇨

Purpose / Summary

To provide Council with the draft Resourcing Strategy which incorporates the Long Term Financial Plan, Asset Management Plan and Workforce Strategy for consideration and adoption.

Recommendation

That the Resourcing Strategy 2017/2027 be adopted and made publicly available as Chapter 6 of the Integrated Strategic Plan.

Options

1. Adopt the recommendation as printed

Implications: This will enable Council to meet the legislative requirements of the Integrated Planning and Report Framework.

2. Make further amendments to Chapter 6 Integrated Strategic Plan-Resourcing Strategy and adopt the amended Resourcing Strategy.

Implications: will depend on the extent of the changes and any financial or other outcomes.

Background

The Integrated Planning and Reporting Framework requires Council to support the Community in setting their direction for the next 10 years through the development of a Community Strategic Plan, four-year Delivery Program and one year Operational Plan.

To achieve these aspirations and future directions, resources are required (time, money, assets and people). Council is not responsible for delivering all elements of the Integrated Strategic Plan. However, the Local Government Act requires that Council must have a long-term Resourcing Strategy for the provision of resources, required to resource the achievement of the Delivery Program and Operational Plans. This strategy will also resource any other strategic plans that Council has developed to support the achievement of the Community Strategic Plan.

The Resourcing Strategy consists of three inter-related elements:

· Long term financial planning

· Asset management planning

· Workforce planning

The Resourcing Strategy is intended to:

· Establish a high level, strategic view of how Council can achieve the objectives and strategies (Themes and Key Priorities) set out in its CSP

· Align resource allocation to support strategic directions and priorities

· Outline the fundamental principles that will support financially sustainable resource allocation

· Integrate the resource needs and priorities identified by asset management planning and workforce planning with the resourcing capacity of the Long Term Financial Plan (LTFP).

The central theme for the Resourcing Strategy is based around transforming the organisation into a financially sustainable, best practice Council that is more efficient and effective, making sure our ratepayers receive “high quality” and “value for money” in the services we deliver. The Resourcing Strategy including all three components is provided as Attachment A to this report.

Long Term Financial Plan

Council’s Long Term Financial Plan is an important part of the Resourcing Strategy as it shows Council’s financial ability to fund its operations & future capital expenditure over a longer time frame. The Income & Expenditure Statement, Balance Sheet, Cash-flow Statement and Key Performance Indicators when read together portray the future financial capabilities of Council to operate in a financial sustainable manner in the longer term.

Over the next 10 years the Long Term Financial Plan has examined three scenarios which include:

· Base case (rate peg only)

· IPART approved one off special rate variation (13.2%) in 2017/18

· Special rate variation as per Council’s application to IPART

The scenarios show the need for additional revenue via a special rate variation if council is to manage its infrastructure and assets effectively into the future.

Council has adopted sustainable resourcing principles as part of the Resourcing Strategy. The priority for capital projects expenditure is renewal and replacement works, the second priority is projects that address the growth of the city and the last priority is the construction of new assets to deliver new facilities or increased levels of services. The long-term projections show:

· Continued spending on roads and transport infrastructure renewal which aligns strongly with the priorities identified by the community in the engagement process for the development of the CSP

· Parks and reserves are identified for spending within asset growth, again aligning with the outcomes of the CSP and DPOP

· Development of new roads and transport, fire and emergency service protection and economic development feature strongly within the “assets new projections”

Workforce Strategy

The Workforce Strategy acts as a roadmap to guide key workforce initiatives within the next 10 years, to ensure Shoalhaven City Council can meet future workforce and organisational challenges. The workforce plan considers the future needs of the organisation and the factors that will influence workforce needs. The plan provides strategies and actions that will positon SCC to respond to and meet those needs.

The draft strategic workforce plan has been developed based on information obtained through the following key processes and/ or sources:

· A ‘Current State’ Report prepared by an external expert involving an external environmental scan (including labour market trends, local government benchmarks), review of Council’s strategic documents, organisational surveys and an analysis of the current workforce profile and related workforce data.

· Several facilitated workshops with Senior Management and a cross section of Unit Managers, Supervisors and staff.

· Review of the results of the Annual PWC & LG Professionals ‘The Australian LG Performance Excellence Program’ that benchmarks Shoalhaven City Council against 134 Councils across NSW, WA and New Zealand.

There are several current workforce challenges that are facing SCC these include:

· Planning for an ageing workforce

· Addressing knowledge management

· Succession Planning

· Attraction and retention

· Staff capability and capacity to harness technological advances

· Developing a resilient and agile workforce

· Capability uplift around effective stakeholder management (both community and councillors)

· Attracting and retaining local staff including youth, Aboriginal and Torres Strait Islander and people with a disability

· Increasing operational effectiveness through communication and collaboration across Council

· Employee learning and development

· Leadership and Management Capability development

These challenges present the following risks to Council:

· Retaining knowledge within the organisation as older workers who have been with the organisation for a long period of time and hold a significant amount of corporate knowledge exit the workforce.

· Having a cohort of leaders ready to step into management positions as older workers retire.

· Attracting and retaining the right people for the right roles given the ongoing challenge of a lack of professional staff locally and the ability to attract professional staff from outside the Local Government Area (LGA) given the regional location and ongoing competitive pressures on remuneration offerings.

· Ensuring staff capability and capacity to harness innovations in technology to improve operational efficiency.

· Developing a resilient and agile workforce to meet the ever-changing environment.

The workforce strategy provides several strategies to meet the challenges and risks faced by Council into the future. The strategy provides initiatives to ensure that Council can be supported to deliver the requirements of the CSP and DPOP.

It is important to note that several of the initiatives within the workforce plan are currently unfunded and do not have a provision of resources, to be delivered. Council will need to careful consider how to meet the ongoing challenges faced by our workforce and the resource needs for the future and the resulting financial implications of these (estimated to be > $200,000 p.a.). Several of the initiatives within the workforce plan will not be delivered within the current resource allocations.

Comparisons with other councils

As part of the Annual PWC & LG Professionals ‘The Australian LG Performance Excellence Program’ survey, a comparison between the staff resourcing of Shoalhaven City Council and other “like” Councils has been undertaken. This is an industry recognised survey support by the Local Government Association. This survey has shown some significant resourcing constraints on Council particularly in the areas of corporate services and employees benefits and oncost expenses. The full survey results will be provided to Council in a future briefing and the impact this has on the long-term delivery of the workforce plan will be highlighted.

Asset Management Plan

Currently the Shoalhaven City Council is the custodian of community assets with a replacement value of about $3 billion. There are legislative and community expectations that council assets are managed to provide the greatest benefits, at the lowest whole-of-life costs, for all residents, landowners and visitors. Asset Management Planning principles are adopted in all service and infrastructure provision activities to support the Community Strategic Plan (CSP) and Delivery Program (DP).

Council has accounted for and planned for all existing assets and new assets proposed in the CSP and DP by:

· Developing and reviewing a complete suite of Asset Management Plans (AMPs) which cover all of Council’s assets

· Updating the 10-year Long Term Financial Plan (LTFP) to include the forecast costs of providing services, maintenance and renewals from AMPs and the forecast costs of proposed new assets from Council’s Contributions Plan and other strategies

· Adopting an Asset Management Policy and

· Developing an Asset Management Strategy

Council’s Asset Management Strategy (AMS) is based on the following principles:

The planning horizon for:

· the AMS and AMPs will be 10-20+ years

· the DP will be 4 years

· the Operational Plan will be one year

· the AMS must include an overarching council endorsed Asset Management Policy

· the AMS must identify assets that are critical to Council’s operations and outline the risk management strategies for these assets

· the AMS must include specific actions to improve asset management capability and projected resource requirements and timeframes.

Risk Implications

Risks are assessed and categorised within the resource strategy. Within the long term financial plan, a risk rating matrix is utilised to identify and classify potential risk to Council’s financial planning assumptions.