Agenda of Ordinary Meeting - 21 September 2015

UNCONFIRMED MINUTES

OF THE ORDINARY MEETING OF PENRITH CITY COUNCIL HELD IN THE

COUNCIL CHAMBERS

ON MONDAY 24 AUGUST 2015 AT 7:36PM

NATIONAL ANTHEM

The meeting opened with the National Anthem.

STATEMENT OF RECOGNITION

His Worship the Mayor, Councillor Ross Fowler OAM read a statement of recognition of Penrith City’s Aboriginal and Torres Strait Islander Cultural Heritage.

PRAYER

The Council Prayer was read by the Rev Neil Checkley.

PRESENT

His Worship the Mayor, Councillor Ross Fowler OAM and Councillors Bernard Bratusa, Prue Car MP, Kevin Crameri OAM, Marcus Cornish, Mark Davies, Maurice Girotto, Ben Goldfinch, Jackie Greenow OAM, Tricia Hitchen, John Thain and Michelle Tormey.

LEAVE OF ABSENCE

Leave of Absence was previously granted to Councillor Karen McKeown for the period 14 August 2015 to 28 August 2015 inclusive.

Leave of Absence was previously requested by Councillor Greg Davies for the period 20 August 2015 to 30 August 2015 inclusive.

Leave of Absence was previously requested by Councillor Jim Aitken OAM for the period 24 August 2015 to 4 September 2015 inclusive.

231 RESOLVED on the MOTION of Councillor Jackie Greenow OAM seconded Councillor Maurice Girotto that the matter be brought forward and dealt with as a matter of urgency.

His Worship the Mayor, Councillor Ross Fowler OAM, ruled that the matter was urgent and should be dealt with at the meeting.

232 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Mark Davies that leave of absence be granted to Councillor Greg Davies for the period 20 August 2015 to 30 August 2015 inclusive and Councillor Jim Aitken OAM for the period 24 August 2015 to 4 September 2015 inclusive.

APOLOGIES

There were no apologies.

CONFIRMATION OF MINUTES - Ordinary Meeting - 27 July 2015

233 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor John Thain that the minutes of the Ordinary Meeting of 27 July 2015 be confirmed.

DECLARATIONS OF INTEREST

Councillor Kevin Crameri OAM declared a Non-Pecuniary Conflict of Interest – Less than Significant in COW Item 2 - Settlement of an outstanding Sundry Debtor Account as the person the subject of this report is personally known to him.

Councillor Mark Davies declared a Non-Pecuniary Conflict of Interest – Less than Significant in Item 10 - Community Assistance Program Planned Component 2015-16 as he is a Board Member of WestCare.

Councillor Marcus Cornish declared a Non-Pecuniary Conflict of Interest – Significant in COW Item 3 - Status on Litigation and Compliance Matters as his wife is the Secretary of the Protect Penrith Action Group Inc.

SUSPENSION OF STANDING ORDERS

234 RESOLVED on the MOTION of Councillor Kevin Crameri OAM seconded Councillor Prue Car MP that Standing Orders be suspended to allow members of the public to address the meeting, the time being 7:43pm.

Ms Mara Broad

Item 8 - Penrith Mayoral Challenge 2015 - Barr and Bass Reserve, Colyton

Ms Broad, a student from Bennett Road Public School spoke to the report and thanked Council for the opportunity to be a part of the Mayoral Challenge and showed Council a video presentation which showed the activities that have occurred as a part of the Penrith Mayoral Challenge.

Ms Casey Rout

Item 8 - Penrith Mayoral Challenge 2015 - Barr and Bass Reserve, Colyton

Ms Rout, a student from Colyton High School Trade School spoke to the report, and thanked Council for the opportunity to be involved in this project. Ms Rout spoke about the challenges of including all the different ideas for the park, and negotiating and working as a team.

RESUMPTION OF STANDING ORDERS

235 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Jackie Greenow OAM that Standing Orders be resumed, the time being 7:50pm.

Mayoral Minutes

1 Colin Wood accepted as a Fellow of the Australian Institute of Building Surveyors

Councillors John Thain, Mark Davies, Jackie Greenow OAM, Marcus Cornish and Kevin Crameri OAM spoke in support of the Mayoral Minute.

The Council showed its acclamation.

236 RESOLVED on the MOTION of Councillor Ross Fowler OAM seconded Councillor John Thain that the Mayoral Minute on Colin Wood accepted as a Fellow of the Australian Institute of Building Surveyors be received.

2 Council and UrbanGrowth NSW win prestigious award for Thornton

Councillors Mark Davies and John Thain spoke in support of the Mayoral Minute.

237 RESOLVED on the MOTION of Councillor Ross Fowler OAM seconded Councillor Mark Davies that the Mayoral Minute on Council and UrbanGrowth NSW win prestigious award for Thornton be received.

Reports of Committees

1 Report and Recommendations of the Local Traffic Committee Meeting held on 3 August 2015

238 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Marcus Cornish that the recommendations contained in the Report and Recommendations of the Local Traffic Committee meeting held on 3 August, 2015 be adopted.

2 Report and Recommendations of the Policy Review Committee Meeting held on 10 August 2015

239 RESOLVED on the MOTION of Councillor Marcus Cornish seconded Councillor Kevin Crameri OAM that the recommendations contained in the Report and Recommendations of the Policy Review Committee meeting held on 10 August, 2015 be adopted.

DELIVERY PROGRAM REPORTS

Procedural Motion

240 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Jackie Greenow OAM that Item 8 be dealt with as the first Item of business and that Item 16 be moved and dealt with after the completion of Committee of the Whole.

Outcome 4 - We have safe, vibrant places

8 Penrith Mayoral Challenge 2015 - Barr and Bass Reserve, Colyton

241 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Prue Car MP

That:

1. The information contained in the report on Penrith Mayoral Challenge 2015 - Barr and Bass Reserve, Colyton be received.

2. Funding for the provision of a BBQ in the Barr and Bass Reserve be allocated up to an amount of $8,000 from East Ward Voted Works.

Outcome 1 - We can work close to home

1 Veterinary School of Excellence and Animal Health

Councillor Prue Car MP left the meeting, the time being 8:10pm.
Councillor Prue Car MP returned to the meeting, the time being 8:12pm.

242 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Tricia Hitchen

That:

1. The information contained in the report on Veterinary School of Excellence and Animal Health be received.

2. Council Officers continue to pursue interest in the establishment of a Veterinary Centre of research excellence in Penrith.

Outcome 2 - We plan for our future growth

2 Panthers Penrith - Proposed Amendment to the Planning Agreement for Road Works

243 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Marcus Cornish

That:

1. The information contained in the report on Panthers Penrith - Proposed Amendment to the Planning Agreement for Road Works be received.

2. Council endorse the proposed amendments to the VPA for Road Works as outlined in this report and that a draft amended VPA for Road Works be prepared in accordance with these proposed changes and the requirements of the Environmental Planning and Assessment Act and Regulations.

3. The draft amended VPA for Road Works be placed on public notice for a period of 28 days.

4. Council authorise the General Manager to finalise and sign the amended VPA for Road Works with the other VPA parties following the conclusion of the public notice period.

5. The Common Seal of the Council of the City of Penrith be affixed to the amended VPA for Road Works developed in accordance with resolutions 2, 3 and 4 above.

6. A copy of the amended VPA be provided to the Minister.

In accordance with Section 375A of the Local Government Act 1993, a DIVISION was then called with the following result:

For	Against
Councillor Prue Car MP
Councillor John Thain
Councillor Michelle Tormey
Councillor Jackie Greenow OAM
Councillor Maurice Girotto
Councillor Kevin Crameri OAM
Councillor Mark Davies
Councillor Ben Goldfinch
Councillor Tricia Hitchen
Councillor Bernard Bratusa
Councillor Marcus Cornish
Councillor Ross Fowler OAM

3 Current membership for Penrith City Council nominated members for JRPP matters

244 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Ben Goldfinch

That:

1. The information contained in the report on Current membership for Penrith City Council nominated members for JRPP matters be received.

2. The Council nominate Councillor Ross Fowler OAM and Councillor Mark Davies to be its representatives on the Joint Regional Planning Panel for an interim period until after the 2016 Council election.

3. The General Manager exercise delegation to nominate staff representatives.

4. Council consider and appoint Council’s representatives to the Joint Regional Planning Panel at the first Council meeting following the Council election for the next three year period.

20 Number of legal sex services premises, massage parlours and tattoo parlours in Penrith CBD

245 RESOLVED on the MOTION of Councillor Marcus Cornish seconded Councillor John Thain that the information contained in the report on Number of legal sex services premises, massage parlours and tattoo parlours in Penrith CBD be received.

Outcome 3 - We can get around the City

4 Works on private land - Lot 180 DP 31911 2 - 6 Anne Street (roadworks in Power Street), St Marys

246 RESOLVED on the MOTION of Councillor Kevin Crameri OAM seconded Councillor Mark Davies

That:

1. The information contained in the report on Works on private land - Lot 180 DP 31911 2 - 6 Anne Street (roadworks in Power Street), St Marys be received.

2. Council resolve to fund the parking lane works contained within private land as detailed in the report.

5 The Northern Road Upgrade Stage 3

247 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Mark Davies

That:

1. The information contained in the report on The Northern Road Upgrade Stage 3 be received.

2. Council officers, based on the content of the report, finalise a submission to the Roads and Maritime Services by 25 August 2015.

3. Council endorses the Engineering Services Manager to sign the ‘Memorandum of Understanding’ which defines an agreement of the interface between the RMS’ Northern Road Upgrade Stage 3 and Council’s Local Roads Package projects.

6 Roads and Maritime Services (RMS) 2015/16 REPAIR Program (Rehabilitation) Road Funding Grant

248 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor John Thain

That:

1. The information contained in the report on Roads and Maritime Services (RMS) 2015/16 REPAIR Program (Rehabilitation) Road Funding Grant be received.

2. Council accept the grant of $300,000, offered under the 2015/16 Roads and Maritime Services REPAIR Program, for the reconstruction of Dunheved Road between The Northern Road and Trinity Drive, Cambridge Gardens.

Outcome 4 - We have safe, vibrant places

7 NSW Boating Now: Funding for Priority Regional Projects in the Regional Boating Plan

249 RESOLVED on the MOTION of Councillor Marcus Cornish seconded Councillor Kevin Crameri OAM

That:

1. The information contained in the report on NSW Boating Now: Funding for Priority Regional Projects in the Regional Boating Plan be received.

2. Council accept the Transport for NSW grant of $800,000, offered under the NSW Boating Now program and confirm the allocation of matching funding as detailed in the report.

3. A letter of thanks be sent to the Hon Stuart Ayres MP, State Member for Penrith.

19 Tender Reference 15/16-02 for the Refurbishment of Tennis Courts at Woodriff Gardens, Castlereagh Road, Penrith

250 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Jackie Greenow OAM

That:

1. The information contained in the report on Tender Reference 15/16-02 for the Refurbishment of Tennis Courts at Woodriff Gardens, Castlereagh Road, Penrith be received

2. The tender from Tuff Turf N Co. Pty Ltd for the sum of $461,295.80 (excluding GST) be accepted for the refurbishment of 14 tennis courts at Woodriff Gardens, Penrith subject to a satisfactory financial analysis of the company being undertaken by Corporate Scorecard.

3. The Common Seal of the Council of the City of Penrith be placed on all documentation as necessary.

Councillor Mark Davies left the meeting, the time being 8:48pm.
Councillor Mark Davies returned to the meeting, the time being 8:50pm.

Outcome 5 - We care about our environment

9 Waste Contracts

251 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Mark Davies

That:

1. The information contained in the report on Waste Contracts be received.

2. The General Manager be authorised to negotiate and execute Garbage and Organics Collection, Recyclables Collection Service, Effluent Waste Collection and Disposal, Civic Waste Collection and Disposal Services, and Street Litterbin Waste Collection and Disposal contracts due to expire on 30 June 2017, to be extended to June 2019.

Outcome 6 - We're healthy and share strong community spirit

10 Community Assistance Program Planned Component 2015-16

Councillor Marcus Cornish left the meeting, the time being 8:50pm.
Councillor Marcus Cornish returned to the meeting, the time being 8:52pm.

252 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Michelle Tormey

That:

1. The information contained in the report on Community Assistance Program Planned Component 2015-16 be received.

2. Council approve funding the highly ranked applications and amounts totalling $30,136 as outlined in Table 2 of this report with $30,000 allocated from the Planned Component and $136 allocated from the Rolling Component of the 2015/2016 Community Assistance Program.

3. The medium ranked applications outlined in the report up to an amount of $9,990 be funded equally from each Wards Voted Works.

11 Licence Agreement - Nepean District Tennis Association's Use of Lot 4 D.P. 10151278, Woodriff Gardens Tennis Complex

253 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Jackie Greenow OAM

That:

1. The information contained in the report on Licence Agreement - Nepean District Tennis Association's Use of Lot 4 D.P. 10151278, Woodriff Gardens Tennis Complex be received.

2. The licence agreement be signed and authority to execute the licence agreement be granted to Council’s Recreation Manager.

Outcome 7 - We have confidence in our Council

12 Organisational Performance Report - June 2015

254 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Ben Goldfinch

That:

1. The information contained in the report on Organisational Performance Report - June 2015 be received.

2. The Organisational Performance Report - June 2015 as at 30 June 2015, including the revised estimates outlined in this report, and detailed in the attached Organisational Performance Report, be adopted.

3. Council revote the works as detailed in the Recommended Revoted Works Lists, detailed in the attached Organisational Performance Report June 2015 for inclusion in the 2015-16 Operational Plan.

13 Sydney Water Replacement Flows Project - Amendment To Council Lands Affected

255 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Ben Goldfinch

That:

1. The information contained in the report on Sydney Water Replacement Flows Project - Amendment To Council Lands Affected be received.

2. The Common Seal of the Council of the City of Penrith be placed on all necessary documentation.

3. Council proceed to invoice Sydney Water for compensation and costs to be payable upon registration of the easements on title to Council land.

15 Provision of Telecommunication and Data Centre Services

256 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Ben Goldfinch

That:

1. The information contained in the report on Provision of Telecommunication and Data Centre Services be received.

2. Council enter into a contract with Telstra Corporation for the provision of Site Data Connectivity Services, Enhanced Network Services and Internet Services for a period of 3 years with a 1 + 1 year option in Council’s favour.

18 Summary of Investments and Banking for the period 1 July to 31 July 2015

257 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Ben Goldfinch

That:

1. The information contained in the report on Summary of Investments and Banking for the period 1 July to 31 July 2015 be received

2. The Certificate of the Responsible Accounting Officer and Summaries of Investments and Performance for the period 1 July 2015 to 31 July 2015 be noted and accepted.

3. The graphical investment analysis as at 31 July 2015 be noted

14 Code of Conduct matter concerning Councillor Marcus Cornish

258 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Michelle Tormey

That the information contained in the report on Code of Conduct matter concerning Councillor Marcus Cornish be received.

17 Local Government Conference 2015

Councillor Maurice Girotto left the meeting, the time being 9:17pm.

Councillor Jackie Greenow OAM left the meeting, the time being 9:18pm.
Councillor Jackie Greenow OAM returned to the meeting, the time being 9:20pm.

259 RESOLVED on the MOTION of Councillor Kevin Crameri OAM seconded Councillor Jackie Greenow OAM

That:

1. The information contained in the report on Local Government Conference 2015 be received

2. The motion detailed within the Report be submitted for inclusion in the 2015 Local Government NSW Annual Conference Business Paper.

3. An urgent report on Erosion in the Hawkesbury Nepean River caused by certain types of water craft be presented to a Councillor Briefing.

Councillor Ben Goldfinch left the meeting, the time being 9:34pm.

REQUESTS FOR REPORTS AND MEMORANDUMS

Councillors Ben Goldfinch and Maurice Girotto returned to the meeting, the being 9:37pm.

RR 1 Disclosure of Financials - PBA

Councillor John Thain requested a memo reply to all Councillors and that Council write to the Chairman and Deputy Chairman of the PBA requesting on behalf of rate payers the Penrith Business Alliance Financials for 2014/15 to the current date.

RR 2 Bennett Wagons and Spring Festival, St Marys

Councillor Jackie Greenow OAM advised the Council that the Bennett Wagons Pavilion will be opening soon and that the St Marys Spring Festival will be coming up soon which will also feature the Bennett Wagons.

Councillor John Thain left the meeting, the time being 9:41pm.

RR 3 Little Big Dash - Regatta Centre

Councillor Jackie Greenow OAM advised Council of the little Big Dash event held at the Regatta Centre recently and that it was a great event enjoyed by thousands of people.

Councillor John Thain returned to the meeting, the time being 9:43pm.

RR 4 Congratulations on Anniversary

Councillor Kevin Crameri OAM congratulated the Mayor on their Anniversary.

RR 5 Possible Sister City Relationship - Port Villa, Vanuatu

Councillor Bernard Bratusa requested a report to a Councillor Briefing on the possibility of establishing a Sister City Relationship with Port Villa, Vanuatu.

Councillor Kevin Crameri OAM left the meeting, the time being 9:48pm.

RR 6 Tourism/Marketing Opportunities

Councillor Bernard Bratusa requested a report to a Councillor Briefing providing information set out in an itemised format, detailing the current marketing budget for 2015/2016. The budget for 2014/2015 and also the expenditure in that period, and also discussing the proposed budget for 2016/2017.

RR 7 Maintenance in Parks

Councillor Marcus Cornish requested a report to Council on how often parks in the Penrith LGA are checked for safety especially equipment where children may be hurt, and is there a regular maintenance program.

RR 8 Cost of Installing BBQ - Jamison Park

Councillor Marcus Cornish requested a report to Council on the cost of installing a BBQ and covered picnic area at the eastern side of Jamison Park near the trees.

RR 9 Wifi in Parks

Councillor Marcus Cornish requested a report on the cost of installing wifi in one major park in each ward outside of the CBD for a pilot program for further rolling out of free wifi across Penrith.

RR 10 Graffiti Removal

Councillor Marcus Cornish requested a memo response and that the graffiti on the railway bridge on Russell Street, Emu Plains and on the M4 rail bridge be removed.

Councillors Prue Car MP, Maurice Girotto and Marcus Cornish left the meeting and did not return the time being 9:53pm.

Committee of the Whole

260 RESOLVED on the MOTION of Councillor Ben Goldfinch seconded Councillor John Thain that the meeting adjourn to the Committee of the Whole to deal with the following matters, the time being 9:52pm.

1 Presence of the Public

CW1 RESOLVED on the motion of Councillor Ben Goldfinch seconded Councillor John Thain that the press and public be excluded from Committee of the Whole to deal with the following matters:

Outcome 7

2 Settlement of an outstanding Sundry Debtor Account

This item has been referred to Committee of the Whole as the report refers to discussion in relation to the personal hardship of a resident or ratepayer and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

Outcome 5

3 Status on Litigation and Compliance Matters

This item has been referred to Committee of the Whole as the report refers to advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

Outcome 7

4 Links Rd, St Marys Voluntary Planning Agreement & Joint Development

This item has been referred to Committee of the Whole as the report refers to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business; AND commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

Outcome 2

5 Number of legal and illegal sex services premises, massage parlours and tattoo parlours in Penrith CBD

This item has been referred to Committee of the Whole as the report refers to information that would, if disclosed, prejudice the maintenance of law and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

Outcome 7

6 Senior Staff Matters

This item has been referred to Committee of the Whole as the report refers to personnel matters concerning particular individuals and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

The meeting resumed at 11:08pm and the General Manager reported that the Committee of the Whole met at 9:52pm on 24 August 2015, the following being present

His Worship the Mayor, Councillor Ross Fowler OAM and Councillors Bernard Bratusa, Kevin Crameri OAM, Mark Davies, Ben Goldfinch, Jackie Greenow OAM, Tricia Hitchen, John Thain and Michelle Tormey.

and the Committee of the Whole excluded the press and public from the meeting for the reasons set out in CW1 and that the Committee of the Whole submitted the following recommendations to Council.

CONFIDENTIAL BUSINESS

2 Settlement of an outstanding Sundry Debtor Account

Councillor Kevin Crameri OAM returned to the meeting, the time being 9:53pm.

RECOMMENDED on the MOTION of Councillor Mark Davies seconded Councillor Bernard Bratusa

CW2 That:

1. The information contained in the report on Settlement of an outstanding Sundry Debtor Account be received.

2. The General Manager be authorised to negotiate a settlement in line with the recommended actions outlined in the report.

3 Status on Litigation and Compliance Matters

RECOMMENDED on the MOTION of Councillor Mark Davies seconded Councillor Ben Goldfinch

CW3 That the information contained in the report on Status on Litigation and Compliance Matters be received.

4 Links Rd, St Marys Voluntary Planning Agreement & Joint Development

RECOMMENDED on the MOTION of Councillor Mark Davies seconded Councillor Ben Goldfinch

CW4 That the information contained in the report on Links Rd, St Marys Voluntary Planning Agreement & Joint Development be received.

5 Number of legal and illegal sex services premises, massage parlours and tattoo parlours in Penrith CBD

RECOMMENDED on the MOTION of Councillor Ben Goldfinch seconded Councillor John Thain

CW5 That the information contained in the report on Number of legal and illegal sex services premises, massage parlours and tattoo parlours in Penrith CBD be received.

6 Senior Staff Matters

Councillor Tormey left the meeting, the time being 11:05pm and did not return.

RECOMMENDED on the MOTION of Councillor Mark Davies seconded Councillor John Thain

CW6 That:

1. The information contained in the report on Senior Staff Matters be received.

2. The recommendation of the Senior Staff Recruitment Review Committee be adopted.

ADOPTION OF Committee of the Whole

261 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Mark Davies that the recommendations contained in the Committee of the Whole and shown as CW, CW2, CW3, CW4, CW5 and CW6 be adopted.

Outcome 6 - We're healthy and share strong community spirit

16 Links Road, St Marys Voluntary Planning Agreement

262 RESOLVED on the MOTION of Councillor Kevin Crameri OAM seconded Councillor Mark Davies

That:

1. The information contained in the report on Links Road, St Marys Voluntary Planning Agreement be received.

2. Council endorse the principles of the proposed draft voluntary planning agreement for the Dunheved Links Road as outlined in this report.

3. The draft voluntary planning agreement once finalised by Council’s lawyers for the Dunheved Link Road be placed on public notification for a period of 28 days.

4. Council authorise the General Manager to finalise and sign the voluntary planning agreement for the Dunheved Link Road following the conclusion of the public notification period.

5. The Common Seal of the Council of the City of Penrith be affixed to the planning agreement for the Dunheved Link Road developed in accordance with resolutions 2, 3 and 4 above.

There being no further business the Chairperson declared the meeting closed the time being 11:10pm.

Ordinary Meeting 21 September 2015

Mayoral Minute

Year in Review

Strategy: Provide opportunities for our community to participate in making decisions about the City's future

In the past 12 months as Mayor I’ve been privileged to be part of some wonderful projects. I’ve watched our city continue to grow in a sustainable way. We’ve become more innovative, more culturally vibrant and are more prepared to meet current and future challenges.

It’s been a privilege to work alongside the community, my fellow Councillors and staff to continue to improve financial stability and growth in our city and make Penrith a great place to live, work, play and invest.

We’ve made great strides in advocating for improved services and infrastructure in the past 12 months. In particular, our 2015 State Election campaign advocacy program yielded fantastic results, including:

· a commitment of $12 million towards the construction of the Western Sydney Sports and Community Centre at Panthers,

· a commitment of more than $1 billion for a Western Sydney Rail Upgrade Program to improve the current network and provide additional and faster services for the T1 Western Line including Penrith and Parramatta,

· commitment of an additional 300 commuter car parking spaces at North Penrith, and

· a commitment of $5 million to plan the widening of Mulgoa Road, from Andrews Road to Glenmore Parkway in conjunction with $70 million State and Federal Government funding for the Jane Street extension.

We joined with the Sydney Business Chamber and Liverpool, Parramatta and Penrith Councils to commission the Deloitte Building Western Sydney's Cultural Arts Economy report. Released in February, it prompted the state government to dedicate $30 million to arts and cultural funding in Western Sydney.

In the wake of the reports’ findings, the state government also announced the allocation of $500,000 under the ClubGRANT, for audio visual and theatre lighting at the Joan Sutherland Performing Arts Centre.

How we can secure this funding for Penrith was the impetus behind the Mayoral Arts and Cultural Summit held this month. It brought together stakeholders from Penrith, the Hawkesbury and the Blue Mountains and aimed to find ways to strengthen this sector and to advocate for more equitable funding.

Our city continues to grow, with work forging ahead in all release areas and on major developments such the Penrith Panthers redevelopment, the Sydney Science and Technology Park and the Penrith Health and Education Precinct.

The Werrington Park Corporate Centre is now open, as is Penrith’s first Smart Work Hub – both fostering local innovation and improving work-life balance.

In February we launched Penrith Progression – A Plan for Action. The culmination of extensive and intensive community consultation, it outlines 100 actions which captures a collective vision for the Penrith of the future. It demonstrates the collaborative, broad canvas approach Council is applying to all planning.

The Plan for Action has already sparked major development. When SHMH Developments bought the former Panasonic site in May, they cited our work to define the future of the city through Penrith Progression as a major factor in their interest.

We’ve also continued to act on the Our River Masterplan, enlivening the river precinct through a range of popular community events. We recently launched the upgraded playground at Tench Reserve and we’ve secured $187,000 under the Metropolitan Greenspace Program for stage 1 to plan for the upgrade of Regatta Park. Further, our state election advocacy also led to an allocation of $800,000 under the Regional Boating Plan for the upgrade of the boat ramp, parking and improved access at Tench Reserve.

The city has never looked better with new parks, playgrounds and fitness equipment for people of all ages and abilities to enjoy and new facilities for them to use. We’ve reconstructed fields and upgraded lighting at many of our sporting fields, improving them, to make them safer and to extend the hours of use.

We continue to work on our bushland and nature reserves through initiatives like the Cranebrook Wetlands and Bushland Regeneration Project and rehabilitation work at Werrington Lakes, Peppermint Reserve in Kingswood and Lincoln Park in Cambridge Park.

An independent community survey showed overall consumer confidence in Council is high.

We expect that the ongoing Capacity Review will continue to improve our productivity and level of service as well as help “future proof” our city.

Looking to the future, we’ve entered into a strategic alliance with the Hawkesbury and Blue Mountains City councils. The alliance will allow us to better leverage economies of scale, efficiently use resources and maximise benefits for all our residents.

With another view to the future and as an important Regional City, we’ve called on the state government to include both Penrith and Liverpool councils on the Western Sydney Airport Project team. If we are to achieve world class aviation and positive urban and employment outcomes for the western Sydney region, we need cross-government collaboration and planning.

The promise of an airport in our region, the release of the Penrith Lakes Parklands Draft Vision Plan for public consultation and the launch of the Penrith Progression – A Plan for Action has intensified international interest in our city.

We hosted a delegation from the Xicheng District in China in March. The delegation met with local business representatives to explore possible collaborations and investment opportunities. We were also honoured to receive a memorial statue from the government of Xicheng in recognition of our Mutual Cooperation Agreement. Delegations from our Japanese friendship cities of Kunshan and Fujieda also visited Penrith in August to help us celebrate our Bicentenary.

There has also been a strong trend of community collaboration in the past 12 months. The Neighbourhood Renewal Program has, once again, allowed us to bring new life to well-established parts of our city.

I was thrilled to launch the upgraded playground at Callisto Drive Reserve in November last year. The project was a collaboration between Council and students from Cranebrook High School. The students were involved in every step of the process and designed a space that could be enjoyed by everyone.

In May I launched the Mayoral Challenge. We’re working with primary and high school students in Colyton to reimagine and redesign the Barr and Bass Street Playground and in so doing helping those students learn leadership skills that will serve them well in their future. I look forward to seeing the results. Similarly, last month we launched Team Colyton to work with its community to bring about positive change.

We also established the Property Development Advisory Panel. The panel is made up of independent industry experts who we’ll collaborate with to grow and maximise returns from our investment property portfolio and revitalise our two city centres.

On a city-wide scale we launched the Penrith Community Panel earlier this month. We will be working with 35 community members to define what services and facilities are most needed in our city and set out key priorities. It’s an exciting opportunity for Council to work more closely with our residents on a broad range of issues to plan for the future of Penrith.

This local involvement initiative again demonstrates our collaborative, broad canvas approach to planning. I’m looking forward to hearing the Panel’s recommendations.

The last 12 months has also been filled with important milestones. I was thrilled to be part of the recent 25^th anniversary celebrations at the Joan, as well as those to celebrate Ripples 20^th birthday in November last year. In April, we celebrated 125 years since the foundation stone of the electric light station was laid and next month we’ll celebrate the switching on of the light. We also acknowledged the centenary of the ANZAC campaign with the Home Front Exhibition at the Penrith Regional Gallery and Lewers Bequest and by installing an informative “War Kiosk” in the library. Our community marked the ANZAC centenary through the incredible Poppy Park, which Council was proud to support.

Of course, for Council and our city, the most significant milestone of 2015 is the Bicentenary of Penrith – 200 years since our first government building was established. We’ve celebrated through a range of community events, activities and competitions that culminated in the highly successful community festival a little over a week ago. Other projects included the rehousing of the Bennett’s Wagons at South Creek Park, our time capsule competition and the re-dedication at the site of the first building in Penrith.

It has been my privilege to represent the City as Mayor at the many community events that have taken place over the past two years. I’ve enjoyed the chance to meet with and listen to local people, and visitors to our city from all over the world.

It’s been gratifying to watch Penrith further cement its place as an important Regional City and emerge as the capital of the New West and the Adventure Capital of Sydney. Council and our communities are uniting to carve out our unique place in western Sydney.

It has been my great pleasure and privilege to preside over Citizenship Ceremonies where in excess of 1500 people from all over the world have been welcomed as Citizens of this great country and are proud to call Penrith home. We are an inclusive City welcoming all peoples regardless of their ethnicity or religion.

Finally I’d like to thank Councillor Greg Davies the Deputy Mayor, my fellow Councillors, particularly those who have deputised for me when there were conflicting commitments, and Council staff for their support. We have all worked together to help deliver our vision and to improve the amenity and lifestyle of our City.

I look forward in the coming years to working alongside my fellow Councillors, and with the community to achieve our shared vision for the future of the city of Penrith.

Thank you an interesting and memorable year.

Councillor Ross Fowler OAM

Mayor

RECOMMENDATION

That the Mayoral Minute on Year in Review be received.

Ordinary Meeting 21 September 2015

Election of Mayor

Compiled by: Adam Beggs, Governance Officer

Authorised by: Glenn Schuil, Senior Governance Officer

Outcome	We have confidence in our Council
Strategy	Demonstrate transparency and ethical behaviour
Service Activity	Ensure that the organisation promotes ethical behaviour, risk management, transparent decision making and meets contemporary governance standards

Executive Summary

Councillors are required by the Local Government Act 1993 to elect a Mayor during the month of September. Under the Act, the General Manager (Returning Officer) receives written nominations for the Office of Mayor up until the time the election is conducted.

In the event that more than one nomination is received for the Office of Mayor, an election is to be held and Council is to determine the method of voting – either ‘open voting’, ‘ordinary ballot’ or ‘preferential ballot’. The General Manager (Returning Officer) must declare the result of the election at this meeting.

Background

Section 290 of the Local Government Act, 1993 requires Councils to elect a Mayor, if it is not the first election after an Ordinary election of Councillors, during the month of September.

Returning Officer

The Local Government (General) Regulation 2005 – Schedule 7 provides that the General Manager (or a person appointed by the General Manager) is the Returning Officer for the election of a Mayor by the Councillors.

Nominations for Mayor

The Local Government (General) Regulation 2005 (the Regulation) provides for a Councillor to be nominated without notice for election as Mayor. However, the nomination must be in writing by two or more Councillors, one of whom can be the nominee. The nomination is not valid unless the nominee has indicated consent to the nomination in writing.

The nomination is to be delivered or sent to the Returning Officer (General Manager). The nomination form can be delivered or sent to the Returning Officer up until the time of the election is being conducted.

Nomination forms have been sent to all Councillors prior to this meeting. Nomination forms will also be available at the meeting if required.

The Returning Officer is to announce the names of the nominees at the Council meeting at which the election is to be held.

Term of Office of Mayor

The term of office of the Mayor will be until the next Mayoral Election to be held in September 2016.

Ballot

If only one Councillor is nominated, that Councillor is elected as Mayor. However if more than one Councillor is nominated, the Council is to resolve whether the election is to proceed by way of open voting, ordinary ballot or preferential ballot. The election is to be held at the Council meeting at which the Council resolves on the method of voting.

In the Regulation the term “open voting” means voting by a show of hands or similar means, and “ballot” has its normal meaning of secret ballot. In other words, the ordinary and preferential ballots are to be secret ballots.

Ordinary Ballot or Open Voting

If the election proceeds by ordinary ballot, the Returning Officer is to decide the manner in which votes are to be marked on the ballot-papers. The Formality of a ballot-paper under this Part is to be determined in accordance with clause 345 of the Regulation.

Count in the case of 2 candidates

1. If there are only 2 candidates, the candidate with the higher number of votes is elected.

2. If there are only 2 candidates and they are tied, the one elected is to be chosen by lot.

Count in the case of there being 3 or more candidates

1. If there are 3 or more candidates, the one with the lowest number of votes is to be excluded.

2. If 3 or more candidates then remain, a further vote is to be taken of those candidates and the one with the lowest number of votes from that further vote is to be excluded.

3. If, after that, 3 or more candidates still remain, the procedure set out in subclause (2) is to be repeated until only 2 candidates remain.

4. A further vote is to be taken of the 2 remaining candidates.

5. The candidate with the higher number of votes is elected.

6. If at any stage during a count under subclause (1) or (2), 2 or more candidates are tied on the lowest number of votes, the one excluded is to be chosen by lot.

Preferential Ballot

1. The ballot-papers are to contain the names of all the candidates. The Councillors are to mark their votes by placing the numbers “1”, “2” and so on against the various names so as to indicate the order of their preference for all the candidates.

2. The formality of a ballot-paper under this Part is to be determined in accordance with clause 345 of the Regulation.

3. If a candidate has an absolute majority of first preference votes, that candidate is elected.

4. If not, the candidate with the lowest number of first preference votes is excluded and the votes on the unexhausted ballot-papers counted to him or her are transferred to the candidates with second preferences on those ballot-papers.

5. A candidate who then has an absolute majority of votes is elected, but, if no candidate then has an absolute majority of votes, the process of excluding the candidate who has the lowest number of votes and counting each of his or her unexhausted ballot-papers to the candidates remaining in the election next in order of the voter’s preference is repeated until one candidate has received an absolute majority of votes. The latter is elected.

6. An "absolute majority", in relation to votes, means a number which is more than one-half of the number of unexhausted formal ballot-papers.

Tied Candidates

1. If, on any count of votes, there are 2 candidates in, or remaining in, the election and the numbers of votes cast for the 2 candidates are equal—the candidate whose name is first chosen by lot is taken to have received an absolute majority of votes and is therefore taken to be elected.

2. If, on any count of votes, there are 3 or more candidates in, or remaining in, the election and the numbers of votes cast for 2 or more candidates are equal and those candidates are the ones with the lowest number of votes on the count of the votes—the candidate whose name is first chosen by lot is taken to have the lowest number of votes and is therefore excluded.

Choosing by Lot

To choose a candidate by lot, the names of the candidates who have equal numbers of votes are written on similar slips of paper by the Returning Officer. The slips are folded by the Returning Officer so as to prevent the names being seen. The slips are mixed and one is drawn at random by the Returning Officer and the candidate whose name is on the drawn slip is chosen.

Result

Under Schedule 7 of the Local Government (General) Regulation 2005 the result of the election (including the name of the candidate elected as Mayor) is:

1. to be declared to the Councillors at the Council meeting at which the election is held by the Returning Officer, and

2. to be delivered or sent to the Chief Executive of the Office of Local Government and to the President of Local Government NSW.

RECOMMENDATION

That:

1. The information contained in the report on Election of Mayor be received.

2. In the event of more than one Councillor being nominated, Council determine the method of election for the Office of Mayor.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Ordinary Meeting 21 September 2015

Draft 2014-15 Financial Statements

Compiled by: Brett Richardson, Financial Accountant

Authorised by: Andrew Moore, Financial Services Manager

Outcome	We have confidence in our Council
Strategy	Ensure our finances and assets are sustainable and services are delivered efficiently
Service Activity	Manage Council's financial sustainability and meet statutory requirements

Executive Summary

The draft 2014-15 Financial Statements have been completed and will be presented at this meeting. The Financial Statements are prepared by Council staff, using the accrual method of accounting, and comply with Australian Accounting Standards and the New South Wales Local Government Code of Accounting Practice and Financial Reporting.

Introduction

This report covers:

· Addressing of the meeting by Council’s Auditor

· Legislative requirements

· Background to the Financial Policies

· Budget Performance, and

· Summary of Financial Results.

Addressing of the Meeting by Council’s Auditor

Mr Gary Mottau, a Director of Hill Rogers Spencer Steer (HR-SS), will be addressing the meeting. Gary has strong experience in both Local Government and auditing, and HR-SS has a large number of New South Wales councils as audit clients. This is the second year that HR-SS has been Council’s auditor.

Legislative Requirements

The Local Government Act requires the following steps:

1. Council staff prepare the financial statements

2. Council issues a statement that the accounts are in order

3. Council refers the financial statements to its auditors for checking

4. The Auditor returns the financial statements with an audit opinion attached

5. The statements are placed on public display and the community may make submissions, and

6. The statements are formally presented during a council meeting.

Council officers have completed step 1 by preparing the statements and this report recommends completion of steps 2, 3, 4 and 5 at tonight’s meeting. The auditors have received an advance copy of the financial statements and have now completed several weeks of their audit program. It is considered appropriate that Council issue the required statement for the 2014-15 accounts.

Current Situation

The Financial Statements have been prepared by Council staff, using the accrual method of accounting, and comply with Australian Accounting Standards and the New South Wales Local Government Code of Accounting Practice and Financial Reporting. The financial statements are required to be audited by an independent auditor, and lodged with the Office of Local Government (OLG) before 31 October each year.

An audited copy of the financial statements was presented to a meeting of Council’s Audit Committee on 2 September 2015. At that meeting, it was resolved that:

“1. The information contained in the report on the Draft 2014-15 Financial Statements be received.

2. The Audit Committee refers the 2014-15 Financial Statements to Council for signing.”

All Entity consolidations and final audit adjustments have now been processed and are included in the Financial Statements. The Draft Financial Statements are attached to this report, and a hard copy can be provided upon request.

Summary of Financial Results

The following figures provide a summary of the key results for 2014-15. A final copy of the Annual Financial Statements can be provided, once they have been adopted by Council. Council’s financial performance is aligned with its continued focus on long-term financial sustainability.

	All figures are in $’000 unless otherwise stated
Item	2014-15	2013-14	% Change
Revenue (including capital)	244,956	214,801	14.0%
Operating Expenditure^#	183,543	192,573	(4.7%)
Net Surplus^#	61,413	22,228	176.3%
Operating results before capital	14,833	(13,732)	208.0%
Capital Grants and Contributions	46,580	35,960	29.5%
Total Assets	2,990,380	2,722,374	9.8%
Total Equity at 30 June	2,876,997	2,610,977	10.2%
Total Borrowings (excl bank overdraft)	67,788	67,440	0.5%
Cash and Investments	86,672	57,482	50.8%
Key Indicators
Unrestricted Current Ratio	1.64	1.10	49.0%
Adjusted Unrestricted Current Ratio*	1.95	1.43	36.5%
Rates Outstanding Ratio	3.36%	3.87%	(13.3%)
Debt Service Cover Ratio	2.68	0.72	271.4%

* removes the forward-funded Section 94 works (from internal reserves) ahead of receipts

# during 2013-14, a one-off amount of $14.1m was paid to the Department of Planning and Infrastructure as Council’s share of the project costs of the Erskine Park Link Road (Lenore Drive). These funds were collected by Council through Section 94 contributions over prior years, and the payment was recognised as an expense in 2013-14. This non-standard use of Section 94 funds significantly impacted Council’s operating result for 2013-14. This amount had a significant impact throughout the statements and on Council’s indicators, particularly where the operating result and expenditure from operating activities are used in a calculation.

Council’s financial position as at 30 June 2015 reflects a strong performance by Council during the 2014-15 Financial Year. All significant financial performance measures are in line with expectations and Council’s short term financial position is sound. After allowing for $46.6m of capital grants and contributions, Council completed the year with a surplus from ordinary activities of $61.4m (2013-14 surplus of $22m).

During 2013-14, there was a one-off non-standard payment of $14.1m to the Department of Planning and Infrastructure for Council’s share of the costs of the Erskine Park Link Road project. This payment is recognised as an expense in the attached Financial Statements and had a significant impact on the 2013-14 Operating Result and several indicators. It is important to keep this transaction in mind when comparing the 2014-15 results with the 2013-14 results.

Unrestricted current assets exceed current liabilities by a ratio of 1.64:1. This is above the Office of Local Government’s benchmark of 1.5:1. As previously reported to Council, this ratio is constrained each year by Council’s practice of forward funding s94 works in advance of contributions by borrowings against internal reserves. For 30 June 2015 these borrowings amounted to $9.0m. Council’s adopted benchmark is 1.25:1 (including internal loans). Once this indicator has been adjusted for internal loans for section 94 funding against reserves, the indicator increases to 1.95:1.

The outstanding loan liability has increased slightly to $67.8m ($67.4m in 2013-14) as a result of some specific purpose funded borrowings. Council continues to use borrowings to fund an accelerated infrastructure program, however Council’s level of debt is continually monitored to ensure it is sustainable without compromising service levels.

Council’s investment policies and strategies have been effective in producing solid returns on ratepayers’ funds. Council’s average return on investments for 2014-15 is 3.38% (2013-14 – 3.56%), which has outperformed Council’s adopted benchmark (90 day BBSW) of 2.5%.

Detailed Key Indicators

It is noted that a number of these indicators were impacted by the one-off non-standard Section 94 transaction in 2013-14 which may impact the comparatives to 2014-15. The first three indicators are also included in the NSW Government’s Fit For the Future (FFtF) reforms.

· Operating performance – measures Council’s achievement of containing operating expenditure within operating revenue. Capital grants and contributions, fair value adjustments, and reversal of revaluation decrements are excluded. The benchmark is greater than 0%. In 2014-15, Council’s indicator was 6.23% (-8.03% in 2013-14). As discussed earlier this indicator was significantly impacted in 2013-14 by the one-off non-standard Section 94 transaction, resulting in a $14.1 contribution being paid to the State Government. Restatement of this comparative indicator with this transaction removed provides for a more meaningful trend analysis with a result of -0.08% for 2013-14.

· Own source operating revenue – is the degree of reliance on external funding sources such as operating grants and contribution. The benchmark is greater than 60% - a higher percentage means a council receives more of its revenue from rates, fees, and charges, and is less reliant on grants and contributions. In 2014-15, Council’s indicator was 68.29% (72.85% in 2013-14).

· Debt service cover ratio – measures the availability of operating cash to service the debt including interest, principal and lease payments. The benchmark for this indicator is anything over 2. For 2014-15, Council’s indicator was 2.68 (0.72 in 2013-14). Excluding the $14.1m Section 94 transaction from this indicator provides a result of 1.82 for 2013-14. Council’s weighted interest rate on borrowings has decreased to 4.5% (from 5.1% in 2013-14) due to the lower costs of capital and a recent borrowing strategy that has seen refinancing of loans previously borrowed at a higher interest rate.

· Cash expense cover ratio – indicates the number of months a Council can continue paying for its immediate expenses without additional cash inflow. The benchmark is greater than 3 months. Council’s indicator for 2014-15 was 4.6 months (2.9 months in 2013-14). Excluding the $14.1m Section 94 transaction from this indicator provides a result of 3.8 months for 2013-14.

2014-15 Budget Performance

Council’s June Quarter and Year End Review was reported to the Ordinary Meeting of Council on 24 August 2015 and commentary relating to Council’s performance was provided in the report and in the report’s attachment “Organisational Performance Report – June 2015”. The result for 2014-15 is a surplus of $218,408 after allowing for a number of transfers to reserve. Over the course of 2014-15, favourable budget variations have enabled Council to provision for significant ICT infrastructure upgrades, and in the June Review also allocated $1.2m to advance the design of a multi-deck carpark in the Penrith CBD.

The June Review of the 2014-15 Operational Plan is available on Council’s website, and a hardcopy version is available to the public upon request.

Key factors in the production of this year’s Financial Statements are discussed below.

Fair Value

Council concluded its move to Fair Value in the 2010-11 Financial Statements with the revaluation of Community Land. The OLG issued Circular (12-09), and confirmed the revaluation cycle of IPPE to a maximum 5 year cycle (unless Council assesses there has been material changes to the valuations beforehand). The dates for the next round of valuations are listed in the table below:

Asset Class	Due
Roads, Bridges, Footpaths, Drainage	30 June 2015
Community Land; Other Assets; Land Improvements	30 June 2016
Water and Sewer	30 June 2017
Property, Plant and Equipment; Operational Land; Buildings	30 June 2018

As shown in the table above, Council was required to conduct a revaluation for its Roads, Bridges, Footpaths, and Drainage assets at 30 June 2015. The revaluation of these assets have been completed as part of the 2014-15 year end process, and have added $205m ($279m in 2009-10) to Council’s Balance Sheet through Infrastructure, Property, Plant, and Equipment. This increase mainly reflects the increased cost to replace these assets that has occurred over the past five years.

Council’s Infrastructure Assets

During 2014-15 Jeff Roorda and Associates (JRA) was commissioned to provide a report to Council on its Infrastructure Assets. JRA provided their “Infrastructure Assessment Report” in June 2015. This report found that Council’s infrastructure backlog presents a manageable financial risk, with the infrastructure sustainability targets under “Fit for the Future” being achievable in 5 years. Under this scenario, priority is allocated to maintenance, then high risk renewal to optimise service and life cycle costs – as the amount of deferred renewal goes down, the amount of maintenance also reduces. This scenario and resulting impacts will be reviewed on an annual basis.

The backlog previously reported in Special Schedule 7 included low risk items to bring to satisfactory standard. The report of JRA recalculated the backlog to align with community expectations for affordable levels of service and remove upgrade / expansion amounts. The primary strategy will be to commence an ongoing process of community engagement to balance service levels, and risks and revenues, while continuing to work with surrounding Councils on efficiency improvement. Special Schedule 7 - “Report on Infrastructure Assets” - in the attached Financial Statements has been updated with this methodology. This has resulted in a decrease in the estimated cost to bring to satisfactory standard (BTS) from $42.1m in 2013-14 to $15.9m in 2014-15.

There are several indicators that are also shown in Special Schedule 7:

o Building and infrastructure renewals ratio (previously shown in Note 13) – is used to assess the rate at which infrastructure assets are being renewed against the rate at which they are depreciating. Council’s indicator in 2014-15 was 39.2% (60.54% in 2013-14). The benchmark is greater than 100%.

o Infrastructure backlog – shows what proportion the backlog is against the total value of Council’s infrastructure. Council’s indicator in 2014-15 was 1.36% (4.4% in 2013-14). The benchmark is less than 2%.

o Asset maintenance ratio – compares the actual versus required annual asset maintenance. A ratio of above 1.0:1 indicates that the Council is investing enough funds within the year to prevent the infrastructure backlog from growing. The benchmark is greater than 1.0:1. Council’s indicator for 2014-15 was 1.14:1 (1.19:1 in 2013-14).

o Capital expenditure ratio – indicates the extent to which a Council is forecasting the expansion of its asset base with capital expenditure spend on both new assets, and replacement and renewal of existing assets. The benchmark is greater than 1:1. Council’s indicator for 2014-15 was 2.68:1 (2.79:1 in 2013-14).

Investment Properties

Council initially booked its Investment Properties in the 2004-05 Financial Year. At this point Council’s Investment Property portfolio was valued at $9.0m. These properties are assessed and valued in line with market conditions using a registered valuer each year. Any gains or losses are shown in the Income Statement. As at 30 June 2014 Council’s Investment Properties were valued at $20.2m.

During 2014-15 Council sold three of its Investment Properties for a total of $6.5m, reducing the value of this asset class to $14.1m. As part of the 2014-15 Financial Statement process Council commissioned a “desktop update” of the valuations of Investment Properties. This update was conducted by the same external firm that completed the full review of Council’s Investment Properties for the 2013-14 Statements. The result of these updated valuations was an increase in the value of Council’s Investment Properties of $1.3m (9.2%). The total value of Investment Properties now reported in Council’s Financial Statements is $15.4m.

Recognition of Land Under Roads (LUR)

AASB 1051 was issued in December 2007 and deals with Land Under Roads (LUR). In Circular 09-25 issued by the then DLG, it was determined that in accordance with AASB 1051 Land Under Roads, Council may elect to recognise or not to recognise as an asset, land under roads acquired before 1 July 2008. The Circular acknowledged that a method of reliable measurement for fair value of land under roads was yet to be determined on a sector-wide basis. For this reason the DLG allowed councils to elect to recognise land under roads acquired before 1 July 2008 but defer that recognition until the valuation methodology was available. Council took up this option to defer recognition and in 2010-11 Council elected to use the “municipal rate” to value its LUR acquired pre-1 July 2008, and also any subsequent recognition. Accordingly, $1,107m of LUR was recognised in the 2010-11 Financial Statements as acquired pre-1 July 2008.

In 2014-15 an additional $11.9m of LUR has been recognised, bringing the total value of Council’s LUR at 30 June 2015, including revaluations previously recognised, to $1,381m.

Legislative Requirements

The Local Government Act classifies various transactions as being write-offs of rates and charges. The reasons for write-offs include properties becoming exempt from rates, pensioner rebates, changes in rating category, rounding down of payments by up to 4 cents, postponed rates, domestic waste charges reversed because they were levied in error and rates and charges reversed due to amended valuations.

The following tables summarises the rates and sundry debtor’s amounts written off during 2014-15 under delegated authority, or pursuant to Council resolutions, and are provided for information:

Rates And Charges Written Off	$
General Rates	127,245
Extra Charges	20,959
Domestic Waste	16,172
TOTAL	164,376

Pensioner Rebate Abandonments	$
General Rates - Statutory	1,867,059
Domestic Waste - Statutory	646,865
TOTAL	2,513,924

Sundry Debtor Abandonments	$
Sundry Debtor	33,693
TOTAL	33,693

Extra charges include interest and legal costs, and are written off due to financial hardship, and where the original rate or domestic waste charge is required to be written off.

During 2014-15, stores and tools to the value of $40,559 were written off:

Stores & Materials Written Off	$
Stores and Tools	40,559
TOTAL	40,559

The draft Financial Statements are presented for Council to form its opinion. The required opinion is set out in the following recommendation. If resolved, the Statement of Council's Opinion can be signed and handed to the auditors at tonight’s meeting.

Summary

The 2014-15 Annual Financial Statements are nearing completion. Council’s financial position as at 30 June 2015 reflects the strong performance of Council during 2014-15. All significant financial performance measures are in line with expectations and Council’s short term financial position remains sound. After allowing for $46.6m of capital grants and contributions, Council finished the year with a surplus from ordinary activities of $61.4m.

RECOMMENDATION

That:

1. The information contained in the report on Draft 2014-15 Financial Statements be received

2. Pursuant to s413(2)(c) it is the Council's opinion that:

a. The financial statements and schedules have been drawn up in accordance with the Local Government Act 1993 and Regulations, the Local Government Code of Accounting Practice and Financial Reporting, the Local Government Australian Infrastructure Management Guidelines, and Australian Accounting Standards. The Code requires a phasing in of the new accounting requirements

b. The statements comply with Australian Statements of Accounting Concepts

c. The financial statements present fairly the Council's financial position as at 30 June 2015 and the operating result for the year then ended

d. The statements are in accord with Council's accounting and other records.

3. Pursuant to the Local Government Code of Accounting Practice and Financial Reporting and section 215 of the Local Government (General) Regulation 2005 it is the Council's opinion that:

a. The accompanying Special Purpose Financial report has been drawn up in accordance with the Local Government Act 1993 and Regulations, the Local Government Code of Accounting Practice and Financial Reporting, and the requirements of National Competition Policy. The Code requires the inclusion of various charges and subsidies which are not actually paid or payable.

b. The report is a special purpose report and is not required to comply with Australian Accounting Standards. The above legislative requirements differ from Australian Accounting Standards and hence the report does not comply with Australian Accounting Standards.

c. The financial statements present a modelled scenario for comparative purposes. They do not report an actual result.

4. Council confirm its endorsement of the budget in the knowledge that some of its business activities are not making commercial returns. The existence of notional subsidies represents Council’s commitment to its community service obligations.

5. The Statements be forwarded to Council's Auditors.

6. Abandonments for 2014-15 as detailed be written off.

7. The balance of stores and materials be adjusted in the stores and materials registers in accordance with the various write-offs.

ATTACHMENTS/APPENDICES

Draft 2014-15 Financial Statements

146 Pages

Attachments Included

Ordinary Meeting 21 September 2015

Attachment 1 - Draft 2014-15 Financial Statements

PDF Creator

v	Meeting at which the draft corporate planning documents (Delivery Program and Operational Plan) are endorsed for exhibition
*	Meeting at which the draft corporate planning documents (Delivery Program and Operational Plan) are adopted
#	Meetings at which the Operational Plan quarterly reviews (March and September) are presented
@	Meetings at which the Delivery Program progress reports (including the Operational Plan quarterly reviews for December and June) are presented
^	Election of Mayor/Deputy Mayor
ü	Meeting at which the 2013-2014 Annual Statements are presented
∞	Meeting at which any comments on the 2013-2014 Annual Statements are presented
+	Meeting at which the Annual Report is presented