Coffs Harbour City Council

18 October 2017

 

Ordinary Council Meeting

 

The above meeting will be held in the Council Administration Building

Cnr Coff and Castle Streets, Coffs Harbour on:

 

Thursday, 26 October 2017

 

The meeting commences at 5.00pm and your attendance is requested.

 

 

AGENDA

 

1.         Opening of Ordinary Meeting

2.         Acknowledgment of Country

3.         Disclosure of Interest

4.         Apologies

5.         Public Addresses / Public Forum

6.         Mayoral Minute

7.         Mayoral Actions under Delegated Authority

8.         Confirmation of Minutes

9.         Rescission Motion

10.      Notices of Motion - General

11.      General Manager’s Reports

12.      Notices of Motion – Business Services

13.      Directorate Reports – Business Services

14.      Notices of Motion – Sustainable Communities

15.      Directorate Reports – Sustainable Communities

16.      Notices of Motion – Sustainable Infrastructure

17.      Directorate Reports – Sustainable Infrastructure

18.      Trust Reports

19.      Requests for Leave of Absence

20.      Questions On Notice

21.      Matters of an Urgent Nature

22.      Consideration of Confidential Items (if any)

23.      Close of Ordinary Meeting.

 

 

Steve  McGrath

General Manager

 

 


Order of Business

 

  

General Manager's Reports

GM17/27         Council Policies................................................................................................... 3

GM17/28         Council Committees - Appointment of Members and Approval of Terms of References...................................................................................................... 3

Directorate Reports - Business Services

BS17/41          Bank and Investment Balances for September 2017.......................... 3

BS17/42          Audited 2016/2017 Annual Financial Statements..................................... 3

Directorate Reports - Sustainable Communities

SC17/57          Coffs Harbour Economic Development Strategy 2017-2022.......... 3   


GM17/27      Council Policies

Author:                        Governance Coordinator

Authoriser:                  Group Leader Governance

MyCoffs:                      D.1 Our leaders give us confidence in the future

Attachments:              ATT1  GM17/27  Child Safety Policy

ATT2  GM17/27  Reserve Naming and Memorial Policy

ATT3  GM17/27  Unmade Public Roads Policy  

 

Executive Summary

The purpose of policy is to document Council’s intent, commitment and/or a position on a particular topic as well as ensure transparency and accountability in local government.  This report presents three policies for council adoption.

 

Recommendation:

That Council adopts the following policies:

1.       Child Safety Policy

2.       Reserve Naming and Memorial Policy

3.       Unmade Public Roads Policy

 

Report

Description of Item:

The purpose of policy is to document Council’s intent, commitment and/or a position on a particular topic as well as ensure transparency and accountability in local government.  The following table provides detail of the policies that are ready for adoption.

 

Policy Name

Policy Detail

Child Safety Policy

Coffs Harbour City Council provides and delivers programs and services that children access and use and council is committed to:

·   Ensuring that Council’s programs and services are safe for children and protects their welfare, wellbeing and, in particular, protects them from child abuse

·   Ensuring that all Council workers (including volunteers, see definition) act in the best interests of a child and take all responsible steps to ensure a child’s safety

·   Establishing and implementing systems for child safety

The purpose of this policy is to document Coffs Harbour City Council’s commitment to child safety that focuses on:

·   Prevention

·   Monitoring and Compliance

·   Response

Reserve Naming and Memorial Policy

Council acknowledges that people share a relationship with the land and that the names we give to places remind us of their significance, local history and identity.  Names orientate us within the landscape and help us identify features and places.

Council has a number of reserves and associated infrastructure where it may be appropriate to celebrate or recognise our region’s history, culture, people and events by honouring significant individuals, families, service clubs, community organisations and events through naming or placing memorials and plaques. Recognition is an honour and it is important that there are clear, ethical and consistent processes for selecting names.

Council is also committed to recognising Aboriginal cultural heritage by registering original place names given by Aboriginal people so they sit side by side with existing European names.

The purpose of this policy is to ensure a consistent, equitable and transparent process for naming or placing memorials in Council owned, managed and or parks, reserves and sports fields (hereafter referred to as Reserves) and associated facilities. It also establishes the principles, criteria and considerations in which applications and proposals for recognition, naming, memorials and dual naming will be assessed.

Unmade Public Roads Policy

Council is responsible for 28km of land classified as public roads that are currently not listed Council’s assets register. They are properties (roads) that have been identified by the State Government Land and property Information (LPI) Department as Council property. These properties (roads) are defined by Council as Unmade Public Roads.

The purpose of this document is to communicate Council’s policy regarding the management and maintenance of Unmade Public Roads.

 

Issues:

There are no issues associated with this report.

Options:

It is considered that the following options are available to Council:

1.   Adopt the recommendation provided to Council.

2.   Amend the recommendation or policy provided to Council and then adopt, meeting any legislative requirements would need to be considered if Council chose this option.

3.   Reject the policy/policies provided to Council.

Sustainability Assessment:

•     Environment

There are no environmental issues associated with this report.

•     Social

Policies are an important communication tool used by Council for providing our community and general public detail on strategic aims, commitments and obligations.

•     Civic Leadership

The purpose of council policy is to ensure transparency and accountability in local government.  The implementation of policy enables Council to identify and respond to the community.  This is consistent with the Council’s MyCoffs Community Strategic Plan, D.1 Our leaders give us confidence in the future.

•     Economic – Broader Economic Implications

There are no broad economic impacts associated with the implementation of the recommendations.

•     Economic - Delivery Program/Operational Plan Implications

The ongoing development and review of Council policies and plans are accommodated within Council’s budget structure.  This expenditure is monitored through Council’s monthly and quarterly budget reviews.

Risk Analysis:

There is no perceived risk in the adoption of the policies listed in this report.

Consultation:

Internal stakeholders were consulted with the drafting of these policies.

Related Policy, Precedents and / or Statutory Requirements:

Detailed within each policy as required.

Implementation Date / Priority:

Immediate.

Conclusion:

That council adopt the attached policies.

 



 


 


 



 


 


 


 



 


GM17/28      Council Committees - Appointment of Members and Approval of Terms of References

Author:                        Governance Coordinator

Authoriser:                  Director Sustainable Communities

MyCoffs:                      A.1 A vibrant and inclusive place

Attachments:              ATT1  GM17/28  City Centre Master Plan Consultant's Report

ATT2  GM17/28  City Centre Master Plan Terms of Reference  

 

Executive Summary

Both nominations for Council Committees and Committee Terms of Reference require approval by Council.  This report is seeking Council’s:

·    Appointment of two committee nominees

·    Adoption of the revised City Centre Master Plan Committee Terms of Reference

·    Endorsement to seek applications for membership of the City Centre Master Plan Committee

 

 

Recommendation:

That Council:

1.   Appoints the following to the Lower Bucca Community Hall Management Committee:

1.1.       Claire Badke

1.2.       Nicole Misios

2.   Adopt the revised City Centre Master Plan Committee Terms of Reference (Attachment 2).

3.   Call for applications for membership of the City Centre Master Plan Committee consistent with both the current and revised Terms of Reference.

 

Report

Description of Item:

As part of the normal functioning of Council Committees, community members are nominated to fill vacant positions and Terms of Reference are revised.  For nominees to be appointed and Terms of Reference accepted they must be ratified by Council.

 

Appointments to the Lower Bucca Community Hall Management Committee

 

The following nominees have been recommended for appointment to the Lower Bucca Community Hall Management Committee:

·     Claire Badke

·     Nicole Misios


 

City Centre Master Plan Committee review of Terms of Reference and recruitment of members

 

Council recently engaged an independent consultant to determine an appropriate framework for the City Centre Master Plan Committee’s continuing operation and to recommend appropriate Terms of Reference.

 

As set out within both the current and recommended updated Terms of Reference, membership is for a two year term with 50% turnover to maintain a level of continuity.  The tenure of committee members David Doyle, Garth Grundy and Kim Towner has expired and there are also two current vacancies within the existing committee.

 

It is timely that recruitment commence for these five roles to ensure the ongoing effective operation of the committee.  It should be noted that outgoing members can reapply and that the final membership is a decision of Council.

 

Discussion regarding the City Centre Master Plan Committee Terms of Reference

 

The City Centre Master Plan Committee was established in June 2012 to assist in the development of Council’s City Centre Master Plan 2031.  The Masterplan was required as a condition of the Independent Pricing and Regulatory Tribunal’s (IPART) 2012 determination to allow the special variation (SV) for one year.  This SV enabled Council to charge a CBD Special Rate to fund a variety of city centre projects.  The City Centre Master Plan 2031 was adopted in February 2013 and Council subsequently applied to the IPART for a SV to its general rate. In June 2013, IPART granted the ten-year SV requested by Council.

 

Council considered the City Centre Master Plan Committee a success and determined to continue it after the SV was granted. In recent times, tensions within the Committee and between the Committee and Council led to an agreement to hold a facilitated workshop to identify how to lessen tensions and place the committees operations on a more even keel.  Accordingly, an independent consultant was engaged to determine an appropriate framework for the Committee’s continuing operation and to recommend an appropriate Terms of Reference.  The scope of this engagement included:

 

-     Review the Committee’s existing Terms of Reference

-     Understand the historical tensions

-     Understand the objectives of the City Centre Master Plan and SV

-     Facilitate a workshop involving Committee members, staff and Councillors

-     Confirm the best mechanism (e.g. s355) to achieve the City Centre Master Plan objectives

-     Document and recommend amendments to the Committee’s Terms of Reference/framework including membership, term etc.

-     Other, as requested by Council or the Committee

 

In particular, the key findings of the review were:

 

1.   The completed projects, irrespective of some perceived project management issues, are believed to have made a positive contribution to the City Centre.

2.   There were some differences of understanding about the role of the Committee among Committee members.

3.   There was a misunderstanding about the relationship between the Committee and Council, particularly regarding the ultimate responsibility for the expenditure of funds.

4.   The existing Terms of Reference are flawed, potentially add to the confusion, and hence ultimately the tension between the Committee and Council.

 

The consultant comprehensively outlined the engagement process that underpinned the review together with a range of recommendations. The recommendations are provided as follows:

 

·    That the Terms of Reference be significantly modified to address the issues identified above

·    That Council review its City Centre Master Plan Committee Project Control Procedure once it has finalised any variation to the Committee’s Terms of Reference

·    That the minutes of Committee meetings be formally presented to Council as part of Council’s meeting agenda.  Council can then note, or endorse, the actions of the Committee

·    That Council provide current future committee members with an appropriate induction program

·    That the Terms of Reference be modified to ensure committee members are aware of the legislative and other requirements around raising and expending funds, as included in Council’s Guidebook for S355 Committees

·    That the committee expands its consultation to include a broader range of groups than currently outlined in the Terms of Reference, including relevant council groups such as the Destination Coffs Coast Committee

 

The consultant’s discussion draft report was tabled at the City Centre Master Plan Committee meeting of 17 August 2017 where it was minuted that:

 

Committee to suggest any changes to draft Terms of Reference by 31 August 2017.

 

At the City Centre Master Plan Committee meeting of 21 September 2017, an updated report was presented which incorporated two submissions which were received from committee members with minor changes.  At this meeting, it was minuted that:

 

the Committee endorsed no change to the Terms of Reference on the basis that it was what was presented to the landowners and IPART and was approved

 

Even though the existing committee is not supportive of any updated or revised framework and/or Terms of Reference, the consultant recommended that the operation of the Committee needs to be revisited and a revised Terms of Reference implemented.

 

It should be noted that there have been no changes made to the revised Terms of Reference attached that were not presented and minuted at the City Centre Master Plan Committee meeting of 21 September 2017.

Issues:

There are no issues associated with this report.

Options:

1.    Adopt the recommendation provided to Council.

2.    Amend the recommendation provided to Council by rejecting one or more nominated committee members or adjusting the attached ToR, and then adopt.

3.    Reject the recommendation provided to Council.

Sustainability Assessment:

•     Environment

There are no environmental issues associated with this report.

•     Social

The care, control and management of these local community facilities by local residents and local community groups enable a sense of community ownership, community involvement and development and overall community wellbeing.

 

Appointing community members to Council committees also recognises and uses the valuable contribution the community makes for the effective provision of Council’s functions.

•     Civic Leadership

This approach consistent with the Council’s MyCoffs Community Strategic Plan:

 

·    A.1 A vibrant and inclusive place

·    B.2 A community achieving its potential.

Economic – Broader Economic Implications

Management committees are generally formed to manage, on behalf of Council, a facility or service in the interest of the user and community at large.  These committees are involved in the day to day management and are also delegated certain functions of the General Manager to allow them to ensure the facility or service meets Council’s expectations.  These committees report annually to Council on their performance.

•     Economic - Delivery Program/Operational Plan Implications

These committees strive to be self-funding but most require a contribution from Council and this is resolved within Council’s Operational Plan and budget setting process.  Most committees involve Council in technical, secretarial or administration costs.  The time and assistance given to Council by volunteers represents significant cost savings to the organisation.

Risk Analysis:

There are no specific risks associated with the appointment of committee members and endorsement of ToRs.  All volunteers are required to sign and comply with Council’s Code of Conduct.

Consultation:

As set out in the attached consultant’s report, there has been a documented methodology on the process of the review and the City Centre Master Plan Committee has been engaged through the entire process.

Related Policy, Precedents and / or Statutory Requirements:

The following statutory requirements of the Local Government Act 1993 are applicable:

 

Section 355 How does a council exercise its functions?

 

A function of a council may, subject to this Chapter, be exercised:

 

a)    by the council by means of the councillors or employees, by its agents or contractors, by financial provision, by the provision of goods, equipment, services, amenities or facilities or by any other means, or

b)    by a committee of the council, or

c)    partly or jointly by the council and another person or persons, or

d)    jointly by the council and another council or councils (including by means of a Voluntary Regional Organisation of Councils of which the councils concerned are members), or

e)    by a delegate of the council (which may, for example, be a Voluntary Regional Organisation of Councils of which the council is a member).

 

Section 377 General power of the council to delegate

Implementation Date / Priority:

The recommendations, if adopted, can be implemented immediately.  It is noted that the outcome of the recruitment for committee members will be the subject of a further report to Council.

Conclusion:

As set out, a facilitated workshop and engagement process was undertaken to address recent tensions within the Committee and between the Committee and Council.

Accordingly, an independent consultant was engaged to determine an appropriate framework for the Committee’s continuing operation and to recommend an appropriate Terms of Reference.

Notwithstanding that the Committee is not supportive of any updated or revised framework and/or Terms of Reference, it is recommended that the operation of the Committee needs to be revisited and an updated Terms of Reference be implemented.

 

 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


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BS17/41       Bank and Investment Balances for September 2017

Author:                        Section Leader Financial Planning

Authoriser:                  Director Business Services

MyCoffs:                      D.2 We have effective use of public resources.

Attachments:              ATT1  BS17/41   Monthly Investment Report for the month ended 30 September 2017  

 

Executive Summary

Council’s Bank Balances and Investments as at 30 September 2017 totalled $192,984,490.48.  Council receives independent advice and invests surplus funds in accordance with Council’s Investment Policy to maximise investment income and preserve capital to assist with funding requirements for projects listed under the My Coffs Community Strategic Plan.

 

 

Recommendation:

That Council note the bank balances and investments totalling $192,984,490.48 (including from loans, Developer Contributions and other avenues that form the restricted accounts and are committed for future works) as at 30 September 2017.

 

 

Report

Description of Item:

A copy of the state of Bank Balances and Investments as at 30 September 2017 is attached.

 

It should be noted that Council is required to account for investments in accordance with the Australian International Financial Reporting Standards.  Term deposits are shown at face value and all other investment balances at the end of each month reflect market value movements which would be inclusive of accrued interest.

 

Interest when paid, say quarterly, would result in reductions in the market value of the investments.  The Investment Report reflects the above requirements and reflects the interest earned (or accrued) on each investment, based on the acquisition price.

 

Reports written by Laminar Group Pty Ltd (Council’s investment portfolio advisors), which examine economic and financial markets data for September 2017 are available in the Councillors’ Resource Centre.

Issues:

There are no issues associated with the report.

Options:

As the report is for noting only, an options analysis is not required.

Sustainability Assessment:

•     Environment

There are no perceived current or future environmental impacts from the information contained in this report.

•     Social

There are no perceived current or future social impacts from the information contained in this report.

•     Civic Leadership

Council invests surplus funds to maximise investment income and preserve capital to assist with funding requirements for projects listed under the My Coffs Community Strategic Plan.

•     Economic – Broader Economic Implications

Council’s investments are held according to the requirements stated within Council’s Investment Policy and the returns are acceptable in relation thereto. In the long term, earnings from investments can vary due to econcomic conditions and financial markets.  Council constructs its investment portfolio with consideration of current conditions and to comply with the Office of Local Government investment policy guidelines.

•     Economic - Delivery Program/Operational Plan Implications

As at 30 September 2017 it is noted that the total bank and investment balances was $192,984,490.48 comprising restricted and unrestricted General, Trust, Water and Sewerage Fund cash and investments.

Risk Analysis:

The likelihood of risks associated with New South Wales Local Government’s investing funds is now remote due to the conservative nature of investments permitted under statutory requirements.  The risk of capital not being returned in relation to each individual investment Council owns is indicated in the attachment.

 

The main risks for Council’s investment portfolio are liquidity and credit risk, both of which are being managed under the advice of Laminar Group Pty Ltd.  Liquidity risk is the risk that the Council is unable to redeem the investment at a fair price within a timely period and thereby incurs additional costs (or in the worst case is unable to execute its spending plans).  Credit risk is the risk of loss of principal stemming from a financial institutions failure to repay that principal when that principal is due.  Council is compensated for assuming credit risk by way of interest payments from the financial institutions issuing the investment security.

 

Credit risk is rated by various rating agencies.  Investment securities in Council’s current portfolio are rated by either Standard and Poors or Fitch, with the majority of the portfolio rated by Standard and Poors.  Standard and Poors credit ratings and an explanation of their ratings are as follows:

 

Rating

Ratings Explanation

AAA

Extremely strong capacity to meet financial commitments. Highest Rating.

AA

Very strong capacity to meet financial commitments.

A

Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.

BBB

Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.

BBB-

Considered lowest investment grade by market participants.

BB+

Considered highest speculative grade by market participants.

BB

Less vulnerable in the near term but faces major ongoing uncertainties to adverse business, financial and economic conditions.

B

More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.

CCC

Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments.

CC

Currently highly vulnerable.

C

Currently highly vulnerable obligations and other defined circumstances.

D

Payment default on financial commitments.

 

Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

 

Types of investment securities by credit risk ranking from highest to lowest are as follows:

 

·    Deposits/Covered Bonds – these share first ranking

·    Senior debt – Floating Rate Notes/Fixed Coupon Bonds.

·    Subordinated debt

·    Hybrids

·    Preference shares

·    Equity shares (common shares).

 

Subordinated debt, hybrids, preference and equity shares are not a permitted investment under the current Ministerial Order.  Term deposits of $250,000 or less per financial institution are covered under the Commonwealth Government Deposit Guarantee Scheme and therefore by default have the same credit rating as the Commonwealth Government, ie AAA.

 

All credit unions, building societies and mutual banks are Authorised Deposit-taking Institutions (ADI’s) and are regulated in the same way as all other Australian banks.  ADI’s are regulated by the Australian Securities and Investment Commission under the Corporations Act 2001, and by the Australian Prudential Regulatory Authority under the Banking Act 1959.

Consultation:

Council’s investment advisors, Laminar Group Pty Ltd have been consulted in the preparation of this report.

Related Policy, Precedents and / or Statutory Requirements:

Council funds have been invested in accordance with Council’s Investment Policy (POL‑049), which was adopted on 24 August 2017.

Local Government Act 1993 – Section 625

Local Government Act 1993 – Investment Order (dated 12 January 2011)

Local Government General Regulation 2005

The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A(2), 14C(1) and 14C(2)

Implementation Date / Priority:

Nil.

Conclusion:

Council should consider the information provided in the report and the Councillors’ Resource Centre and the recommendation provided.

 

 


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BS17/42       Audited 2016/2017 Annual Financial Statements

Author:                        Section Leader Financial Support

Authoriser:                  Director Business Services

MyCoffs:                      D.2 We have effective use of public resources.

Attachments:              ATT1  BS17/42   General Purpose Financial Statements

ATT2  BS17/42   Special Purpose Financial Statements

ATT3  BS17/42   Special Schedules

ATT4  BS17/42   Draft Conduct of the Audit Report 2017  

 

Executive Summary

The audited Financial Statements for 2016/17 are being presented to meet legislative requirements under Section 419 of the Local Government Act in relation to their completion, audit and presentation.

 

The General Purpose Financial Statements and Special Purpose Financial Statements are the statements required to be produced by the Australian International Financial Reporting Standards whilst the Special Schedules contain additional information required for the NSW Grants Commission, Australian Bureau of Statistics, Department of Primary Industries Water and Office of Local Government.

 

The final audited Financial Statements require certification by the designated signatories for the audit opinion and Conduct of the Audit Report to be issued, and for the Financial Statements to be then lodged with the Office of Local Government.

 

 

Recommendation:

That Council:

1.   Approve the General Purpose Financial Statements – Statement by Councillors and Management and Special Purpose Financial Statements – Statement by Councillors and Management forms relating to the audited 2016/2017 annual Financial Statements for completion by the designated signatories.

 

2.   Receive and adopt the audited 2016/2017 Financial Statements.

 

Report

Description of Item:

The audited Financial Statements for the year ended 30 June 2017 are attached.

 

Council’s auditor, Mr James Sugumar, Audit Office of NSW, will be in attendance to address Council during the meeting in relation to the audit of the 2016/17 Financial Statements through presenting the draft Conduct of the Audit Report (Attachment 4).

 

The Financial Statements consist of three distinct sections:

 

1.   The General Purpose Financial Statements (Attachment 1)

2.   The Special Purpose Financial Statements (Attachment 2)

3.   The Special Schedules (Attachment 3)

 

The General Purpose Financial Statements and Special Purpose Financial Statements are the statements required to be produced by the Australian International Financial Reporting Standards whilst the Special Schedules contain additional information required for the NSW Grants Commission, Australian Bureau of Statistics, Department of Primary Industries Water and Office of Local Government.

 

It should be recognised that the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, and Statement of Cash Flows of the General Purpose Statements provide a consolidated picture of a council’s operation and financial position and excludes transactions between General, Water and Sewer funds, e.g. water charges met by the Asset Construction and Maintenance section are reversed. 

 

For a multi-purpose Council, such as Coffs Harbour City Council, the results achieved by each traditional fund (General, Water and Sewerage) are disclosed in Note 21 of the General Purpose Financial Statements.

 

The sections of the financial statements are set out below:

 

1.       General Purpose Financial Statements

 

In relation to the specific statements included in the General Purpose Financial Statements, the following comments are made:

 

a)      Statement by Councillors and Management.

 

The statement requires Councillors and Management to declare that the financial statements are neither false nor misleading in any way and present fairly Council’s operating result and financial position for the year.  The draft statements were approved by Council for signature on 28 September 2017.

 

The Audit Office of NSW, as representatives of the Auditor General, require for the audited annual Financial Statements presented at this meeting to be approved for signature by the designated signatories prior to providing the audit report.  The audit report is required to be submitted with the annual Financial Statements to the Office of Local Government by 31 October 2017.

 

b)      Income Statement

 

The Income Statement summarises the Income and Expenses from Continuing Operations that result in Council’s Net Operating Result for the year. One change has been made from the draft Income Statement being the reclassification of assets recognised for the first time from Grants and Contributions Provided for Capital Purposes (decreased by $17.8 million) to Other Revenues (increased by $16.8 million) and Grants and Contributions Provided for Operating Purposes (increased by $1.0 million).

 

The Net Operating Result for the Council for the financial year was a surplus of $53.813 million.  The Net Operating Result for the Council for the year prior to contributions and grants for capital purposes was $19.591 million.  This result is a good result, but needs to be put into some context due to a number of one off events which occurred during the financial year.  The other revenue contained within the statements was higher than expected due to a number of asset additions which occurred in conjunction with the revaluation of the Council’s Water and Sewer Assets.  This increase in revenue totalled $17.8 million.  The Grants and contributions for operating purposes was higher than expected due to the prepayment of the Financial Assistance Grants by the Local Government Grants Commission and this amount of prepayment was $3.589 million.  Should these two items of revenue be removed it would see adjusted revenue of $197.7 million.

 

The loss on disposal of assets includes two items which could also be considered as one off events.  The first was a write off of $15.003 million of assets which occurred in conjunction with the revaluation of the Council’s Water and Sewer Assets.  The second event was a Tip remediation amortisation adjustment of $3.586 million.  The Council undertook a review of the amount of money it had set aside to remediate the tip at the end of its useful life and found it did not require as much money as had been set aside.  Therefore the provision was reduced by this amount. Should these two items of expenditure be removed it would see expenses reduced by $11.417 million and total expenses of $153.589 million.

 

Removing these one off events would see an adjusted Net Operating Result for the Council for the year prior to contributions and grants for capital purposes of $9.619 million.  The following table shows these adjustments:

 

 

 

 

c)      Statement of Comprehensive Income

 

The Statement of Comprehensive Income is a financial report detailing the change in an organisation’s net assets during a specific period of time.  A statement of comprehensive income differs from a typical income statement, which details profits and losses, but may omit changes in net assets due to asset revaluations ($66 million increase in equity for 2016/17).

 

d)      Statement of Financial Position

 

The Statement of Financial Position sets out Council’s assets, liabilities and equity.  Equity represents the accumulation of operational surpluses and recognition of reserves following the increase in asset values through Councils asset valuation policies.

 

e)      Statement of Changes in Equity

 

This statement shows the change in Equity for the year as reflected in the 'Statement of Financial Position'.  The Equity has increased by $120 million from 2015/2016 to 2016/2017 due to a revaluation of Water and Sewer Network assets of $66 million and an Operating Surplus of $54 million.

 

f)       Statement of Cash Flows

 

This statement shows how the Council funds were sourced and applied during the year.

 

The source and application of funds is divided into Operating Activities ($76 million net inflow of funds), Investing Activities ($55 million net outflow of funds) and Financing Activities ($15 million net outflow of funds) to result in a positive cash flow of $6 million that increased Council's cash holdings from $11 million to $17 million.

 

Non cash movements or accruals are recorded at the time a transaction occurs regardless of whether cash has been paid or received.  These transactions are excluded in the Statement of Cash Flows (as this note only reports on a transaction when cash has been paid or received), and this difference in accounting can be seen by comparing the 'Cash Flows from Operating Activities' with the 'Income Statement', which is set out below:

 

Operating Activity:

 

Income Statement (Revenue/ Expenses based on accruals)

$’000

 

Statement of Cash Flows (Receipts/ Payments based on cash)

$’000

Revenue/Receipts

 

 

 

Rates and Annual Charges

User Charges and Fees

Interest and Investment Revenue

Grants and Contributions

Bonds and Deposits received

Other Revenues

91,319

35,189

7,069

56,285

-

29,227

 

90,444

34,915

6,656

27,970

541

36,593

 

219,089

 

197,119

Expenses/Payments

 

 

 

Employee Costs

Materials and Contracts

Borrowing Costs

Depreciation and Amortisation

Other Operating Expenses

Net Loss from Disposals

42,732

44,958

12,727

38,075

12,476

14,308

 

42,131

53,977

11,498

-

13,223

-

 

165,276

 

76,290

Net Operating Result/ Net Cash provided by Operating Activities

53,813

 

76,290

 

 

 

 

Net Operating Result Before Capital Grants and Contributions

19,591

 

N/A

 

The 'Statement of Cash Flows', being a 'cash' statement, reconciles to the cash on hand.

 

Key Performance Indicators reported:

 

Council’s Operating Performance ratio has improved to 19% in 2016/17 from -1% in 2015/16.  This can be attributed to the implementation of Council’s financial sustainability strategies, the receipt of $3.6 million Financial Assistance Grant in advance and the recognition of $17.8 million revenue from assets discovered during the revaluation process.  The Net Operating Result Before Capital Grants and Contributions has improved to a surplus of $19 million from a loss of $3 million for 2015/16.

 

Council’s Own Source Operating Revenues ratio has increased to 74% from 59% in 2015/16.  This increase can be attributed to the one-off recognition of the Solitary Islands Way gifted from RMS in the previous financial year.

 

The Unrestricted Current ratio has increased to 14.8 in 2016/17 from 3.8 in 2015/16.  This favourable movement is largely attributable to an increase in Council’s current assets and a change in the internal accounting treatment of current versus non-current external restrictions.

 

The Debt Service Cover ratio has increased to 3.1 in 2016/17 from 1.79 in 2015/16, which is a favourable movement and is reflective of a decrease in interest costs and greater operating result as reflected in the above mentioned events during the year.

 

There has been a slight increase in the Rates, Annual Charge, Interest and Extra Charges Outstanding Percentage of 6.62% in 2016/17 from 5.96% in 2015/16 due to debt recovery by Council not being as successful.

 

Fit for the Future Improvement Plan:

 

The continued implementation of Council’s financial sustainability strategies, including the Special Rate Variation (last year 2016/17), Transformation to Sustainability Program (completed 2016/17) and improved asset management (ongoing), have all contributed to Council’s improved underlying operating performance.  These strategies also formed the basis of Council’s Fit for the Future Improvement Plan and the 2016/17 results demonstrate that Council is now achieving many of the Fit for the Future benchmarks for the General Fund required by 2019/20.

 

2.       Special Purpose Financial Statements

 

The Special Purpose Financial Statements include the Income Statements and Statement of Financial Performance for Council’s Business Activities (Water, Sewerage, Coastal Works, CitySmart Solutions, Environmental Laboratory and Airport) as required under National Competition Policy (NCP) guidelines.

 

The Income Statement includes internal transactions between business activities and Council’s General fund, and also shows notional transactions required under NCP (i.e. Imputation Payments, Corporate Taxation Equivalent and Notional Subsidies from Council).

 

The Statement of Financial Position sets out the assets, liabilities and equity of Council’s business activities.  The statement includes internal transactions between business activities and Council’s General fund.

 

Note 1 to the Special Purpose Financial Statements outlines the significant accounting policies complied with and other matters of note affecting the financial statements such as the National Competition Policy Imputation Payments utilised.

 

Notes 2 and 3 outline the tax equivalent payments, the dividends from operating surpluses that would be payable if the Best Practice Management Guidelines have been met and National Water Initiative Financial Performance Indicators.

 

3.       Special Schedules

 

These schedules provide additional information required for the NSW Grants Commission, Australian Bureau of Statistics, Department of Primary Industries Water and Office of Local Government and also support data included in the Special Purpose Financial Statements.  The data is also used in the allocation of Financial Assistance Grants, incorporation in national statistics, monitoring of loan approvals, allocation of borrowing rights and monitoring of financial activities of specific services.  The auditor is not required to audit the Special Schedules with the exception of Special Schedule 8 – Permissible Income.

 

The Financial Statements and auditor’s report will be presented with Council’s Annual Report at a future meeting as required under S 419(1) of the Local Government Act.

 

Summary:

The Financial Result for the 2016/17 financial year is reflective of the continuing efforts by Council to improve the organisation’s financial sustainability.  With continued focus on the financial sustainability of all funds of Council, the long term financial position of the Council will continue to improve.  Council will need to remain vigilant over the coming years to maintain the financial prudency and leadership displayed over the last few years to ensure the organisation becomes a long term financially sustainable Council in all funds.

Issues:

Failure to approve the abovementioned statements will result in non-compliance with relevant legislation.

Options:

This report is to enable Council to adopt the audited Financial Statements for 2016/17.  This is required by legislation and therefore is the only option available to Council.

Sustainability Assessment:

•     Environment

There are no perceived current or future environmental impacts.

•     Social

There are no perceived current or future social impacts.

•     Civic Leadership

There are no perceived current or future civic leadership impacts.

•     Economic – Broader Economic Implications

There are no perceived current or future economic impacts.

•     Economic - Delivery Program/Operational Plan Implications

The operational plan process through budget reviews have reflected the financial results achieved in Council’s Annual Financial Statements.  Costs for preparation of the Annual Financial Statements are allocated with the Financial Services & Logistics budget cost centres.

Risk Analysis:

A risk assessment has been carried out and it is considered that endorsement of the recommendation does not present a risk to Council.

Consultation:

The Annual Financial Statements were collated with the assistance of various Council staff members in conjunction with the Audit Office of NSW (Council’s external auditors).

Related Policy, Precedents and / or Statutory Requirements:

The Financial Statements are prepared and presented on an annual basis in accordance with statutory and regulatory requirements.

 

The financial statements have been prepared in accordance with:

 

1.       The Local Government Act 1993 and amendments

2.       Local Government Regulations

3.       Australian Accounting Standards (AASBs)

4.       The "Local Government Code of Accounting Practice and Financial Reporting” published by the Office of Local Government

5.       The “Asset Accounting Manual” published by the Office of Local Government

6.       Instructions issued in circulars released by the Office of Local Government

7.       NSW Government Policy Statement 'Application of National Competition Policy to Local Government'

8.       Office of Local Government guidelines “Pricing & Costing for Council Businesses: A guide to Competitive Neutrality”

9.       Council’s policies and procedures

Implementation Date / Priority:

Under Section 416(1) of the Local Government Act 1993, Council’s financial statements for a year must be prepared and audited within the period of 4 months after the end of that year i.e. submitted to the Office of Local Government by 31 October.  The Financial Statements for2016/17 have been completed and audited, and will be lodged with the Office of Local Government by 31 October 2017 following adoption by Council.  The final audited Financial Statements require certification by the designated signatories for the audit opinion and Conduct of the Audit Report to be issued.

Conclusion:

This report presents the final audited Financial Statements for the 2016/17 financial year to Council for certification and adoption, provides for Council’s external auditors to present their draft Conduct of the Audit Report and provides Council with an analysis of the results for the year.

 



 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 



 



 


 


 


 


 


 



 


 


 


 


 


 


 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 


 




 


 


 


 


 


 


 


 



 



 


 


 


 


 


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SC17/57       Coffs Harbour Economic Development Strategy 2017-2022

Author:                        Group Leader City Prosperity

Authoriser:                  Director Sustainable Communities

MyCoffs:                      B.1 A thriving and sustainable local economy

Attachments:              ATT1  SC17/57   Coffs Harbour Economic Development Strategy 2017-2022

ATT2  SC17/57   Review of Submissions and Amendments to Draft Strategy

ATT3  SC17/57   CONFIDENTIAL          Submissions

Confidential in accordance with Section 10A(2)(e) of the Local Government Act as it contains information that would, if disclosed, prejudice the maintenance of law.  

 

Executive Summary

The Coffs Harbour Economic Development Strategy 2017-2022 is a refresh of the previous Economic Strategy 2014-2017, and guided by the strategic outcomes from the MyCoffs Community Strategic Plan. 

Considerable stakeholder consultation occurred during the formation of the Draft Coffs Harbour Economic Development Strategy 2017-2022, and also while the draft plan was on public exhibition for four weeks. 

The final plan is now presented to Council for adoption.

 

Recommendation:

That Council:

1.       Adopt the Coffs Harbour Economic Development Strategy 2017-2022 (Attachment 1).

2.       Write to those who made a submission advising them of the outcome of their submission, and the status of the Coffs Harbour Economic Development Strategy 2017-2022.

 

Report

Description of Item:

The Coffs Harbour Economic Development Strategy 2017-2022 (ATT1) is an important strategic document for Council and the community.  Based on foundations of both the MyCoffs Community Strategic Plan, and the previous Coffs Harbour Economic Strategy 2014-2017, this new strategy aims to clearly identify and prioritise strategic actions and measurements.

The refresh of the strategy has dovetailed with the extensive community consultation and development of the MyCoffs Community Strategic Plan, adopted by Council in June 2017, which contains, five broad economic goals to realise the community vision of a Connected, Sustainable and Thriving Coffs, as noted in the Civic Leadership section of this report.

The strategy has reaffirmed three key sectors:

·    The digital and innovation economy

·    The food manufacturing and agribusiness (agri-food) economy

·    The visitor economy

Following public exhibition of the draft, the final strategy is now presented to Council for adoption (Attachment 1).

Issues:

The draft strategy was considered by Council as it’s meeting of 10 August 2017, where it was resolved:

That Council place the Draft Coffs Harbour Economic Development Strategy 2017-2022 on 28 day public exhibition.

The plan was placed on public exhibition for a period of 30 days from 15 August to 15 September 2017.  Fourteen (14) submissions were received.

The submissions and feedback gathered during the consultation have been reviewed, and minor amendments to the final plan have been made (Attachment 2). The amendments are predominantly clarifying discussion points.

Options:

The following options are available to Council:

1.   Adopt the recommendations provided in this report, adopting the Coffs Harbour Economic Development Strategy 2017-2022.

2.   Amend or reject the recommendations as Council may wish to propose alternate options.

Sustainability Assessment:

•     Environment

There are no specific environmental issues associated with this report.

•     Social

A thriving economy is an important aspect of the social cohesion within a community.

•     Civic Leadership

This strategy directly addresses key economic sections of the My Coffs Community Strategic Plan.

-     Champion business, innovation and technology to stimulate economic growth and local jobs (B1.1)

-     Attract people to work, live and visit (B1.2)

-     Prepare to exploit opportunities now and in the future (B2.1)

-     Create and manage vibrant public places (C1.1)

-     Effectively manage the planning and provision of regional public services and infrastructure (D2.1)

•     Economic – Broader Economic Implications

A measurable and succinct economic development strategy will lead Council’s efforts and resources in delivering the economic outcomes within the MyCoffs Community Strategic Plan.

•     Economic - Delivery Program/Operational Plan Implications

There are no specific implications for the Delivery Program/Operational Plan associated with this report.  Allocations exist for funding some activities within this and other relevant strategies.  Unfunded projects (such as infrastructure) will continue to seek external funding where required.

Risk Analysis:

The Coffs Harbour Economic Development Strategy 2017-2022 highlights that Coffs Harbour is in a period of transition from a regional town reliant on traditional economic sectors (agriculture, forestry, fishing, construction, retail, tourism) to a more sophisticated and diverse regional city characterised by a greater focus on services (financial, health, education, technology, cultural), new market opportunities and future workforce needs.

Consultation:

Significant consultation was undertaken with the business community and Chambers of Commerce during the preparation of the draft strategy. 

During the 30 day exhibition period, fourteen (14) submissions were received.

A summary of the consultation and changes to the plan (Attachment 2) and a full list of submissions (Attachment 3 confidential) are included with this report.

Dr Grant Cairncross, author of the previous Economic Strategy 2014-2017, has undertaken a peer review which supports the new strategy.

Related Policy, Precedents and / or Statutory Requirements:

The Coffs Harbour Economic Development Strategy 2017-2022 incorporates relevant aspects from the following:

-     The MyCoffs Community Strategic Plan

-     The Coffs Coast Strategic Tourism Plan 2020

-     The Coffs Harbour Events Strategy 2020

-     The Coffs Harbour Economic Strategy (Live Love Coffs) 2014 - 2017

-     The Creative Coffs Cultural Strategic Plan 2017 – 2022

-     The NSW North Coast Regional Plan 2036

-     The Smart Cities Plan and other strategic documents as noted within the strategy

The Coffs Harbour Economic Strategy 2014-2017 is the current adopted strategy.  If adopted, the new strategy will replace the previous strategy.

Implementation Date / Priority:

If adopted, the Coffs Harbour Economic Development Strategy 2017-2022 will take effect on 1 November 2017.

Conclusion:

The Coffs Harbour Economic Development Strategy 2017-2022 is an important strategic document for Council and the wider community, and will lead and guide Council’s efforts and resources in delivering the economic outcomes within the MyCoffs Community Strategic Plan.

 


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