A MOTION WAS SUBMITTED BY COUNCIL THOMAS AND DETAILED BY COUNCIL DE MASI TO ADOP THE RECOMMENDATION IN THE REPORT. A MOTION WAS SUBMITTED BY COUNCIL UNO AND DETAILED BY COUNCIL RUS SO THAT THE RECOMMENDATION IN THE REPORT IS ADOPTED.
MINUTES of the duly convened Ordinary Meeting of The Hills Shire Council held in the Council Chambers on 13 August 2019
Minutes of the duly called ordinary meeting of the Hills Shire Council held in the Council Chambers on 13 August 2019.
409 ANNANGROVE ROAD, ANNANGROVE
410 NELSON/MASON ROAD, BOX HILL INTERSECTION
411 BOX HILL PARK
Minutes of the duly called ordinary meeting of the Hills Shire Council held at the Council Chambers on 13 August 2019 Council Chambers on 13 August 2019.
412 POT HOLES - NELSON ROAD, NELSON
413 CASTLE HILL CEMETERY
414 KISS AND DROP ZONE – CASTLE HILL METRO INTERCHANGE
415 JERSEY DAY – 27 AUGUST 2019
416 THE HILLS SHIRE TIMES ARTICLE - SUBURBAN HOLY WAR
Councilor Hay OAM asked if the Council could refer this matter to the appropriate authority on this title as it is divisive and would affect many legal levels and invite the community to respond to this type of smearing. The minutes of the aforementioned meeting were approved at the council meeting on August 27, 2019.
Councilor Collins OAM further added if the Council could also refer to the heading this time last year after the Planning Proposal was kicked out for review and requested the Council to combine the two when this matter was referred to the appropriate authority.
ORDINARY MEETING OF COUNCIL 27 AUGUST, 2019
ITEM-2 2018/2019 DRAFT STATUTORY FINANCIAL STATEMENTS & BUDGET RESULT
OUTCOME
Prudent management of financial resources, assets and people for long term sustainability
STRATEGY
Maintain a strong financial position that supports the delivery of services and strategies and ensures long term
MEETING DATE: 27 AUGUST 2019 COUNCIL MEETING
AUTHOR
MANAGER FINANCE, INTERGRATED PLANNING &
REPORTING ANEESH ZAHRA
RESPONSIBLE OFFICER
GROUP MANAGER FINANCE & ORGANISATIONAL PERFORMANCE
CHANDI SABA BACKGROUND
The presentation from Council’s External Auditor be received
- OPERATING SURPLUS $146.9m & BUDGET RESULT $4.56m
- Income – Net decrease $209k as detailed below
- Expenditure – Net decrease $6,983k as detailed below Savings of $7,163k relating to below
- Depreciation
- Transfer to Reserves - Net Increase $2.5m
- Budget Surplus & Proposed Transfer to Capital Works Reserves $4.56m
- CAPITAL PURCHASES
- Capital Purchases – Decrease $435k
- Sale of Assets – Increase $ 309k
- Transfer to Reserves $744k
- CAPITAL WORKS SUMMARY
- Net reduction in Projects completed $1.43m These variations are due to the following
- Net Reduction in Land projects $12.4m
- Savings for project delivery costs $347k
- Box Hill North VPA (CP16) $8.5m
A list of these Transfer Funds and transfer to reserves is set out in Appendix 4, Pages 11 to 14. 347,383 savings in project survey, design and supervision costs proposed to be transferred to Capital Works Reserves.
Hills of Carmel VPA Date of
- REAL ESTATE ASSETS
- FINANCIAL STATEMENTS
- Non GAAP Financial Statements adjustments
- Cash & Investment Balances
- Debtors & Proposed Write off of Bad Debts
- Current 31-60
- days 61-90
- FINANCIAL SUSTAINABILITY RATIOS
- The presentation from Audit Office be received
- The Statutory Financial Statements (Attachment 1) as required by Section 413 of the Local Government Act, 1993 and the Local Government Code of Accounting Practice be adopted and
- Upon Council receiving the Auditor’s written Report:-
- The Capital Improvement Budget Variations, Carryover Funds and Proposed Transfers to Reserves as detailed in Attachment 4 Pages 1 to 25 be adopted
- Management Reporting Format Page 5-10 Statutory Reporting Format
- Listing of Carry Over and Transfers to Reserves Page 15-25 Capital Works Expenditure and Variations
- Listing of Contracts & Other Expenses
The table below details the proposed write-off amounts listed under Sundry Debtors and the balances as at 30 June 2019. After receipt of the Board of the Auditor's written Report:-. a) The Financial Statements (Attachment 1) are advertised and sent to the NSW Office of Local Government;.
GENERAL PURPOSE FINANCIAL STATEMENTS
Understanding Council’s Financial Statements Statement by Councillors and Management
Notes to the Financial Statements
Independent Auditor’s Reports
- The Income Statement
- The Statement of Comprehensive Income Primarily records changes in the fair value of
- The Statement of Financial Position
- The Statement of Changes in Equity
- The Statement of Cash Flows
- Basis of preparation
- Basis of preparation (continued)
- Income from continuing operations
- Income from continuing operations (continued)
The public can make submissions to the Board up to seven days after the public presentation of the financial statements. The financial statements are presented in Australian dollars and are rounded to the nearest thousand dollars.
TOTAL USER CHARGES AND FEES
Other User Fees and Charges. i) Fees and charges – statutory and regulatory functions (per s.608) General administration.
TOTAL INTEREST AND INVESTMENT REVENUE
Expenses from continuing operations
Employee Leave Entitlements (ELE) Superannuation - Defined Contribution Plans Superannuation - Defined Benefit Plans Workers' Compensation Insurance Taxation Tax (FBT).
TOTAL EMPLOYEE COSTS EXPENSED
Expenses from continuing operations (continued)
TOTAL MATERIALS AND CONTRACTS
Auditor remuneration
Expenses from continuing operations (continued). c) Amortization, depreciation and amortization of intangible assets and IPP&E.
TOTAL DEPRECIATION, AMORTISATION AND IMPAIRMENT / REVALUATION DECREMENT FOR INTANGIBLES AND IPP&E
NET GAIN/(LOSS) ON DISPOSAL OF ASSETS
TOTAL CASH ASSETS, CASH EQUIVALENTS AND INVESTMENTS
Receivables
Annual Fees and Charges Interest and Surcharges Accrued Income – Investment Interest Government Grants - RMS Government Grants - Education Government Grants - Other GST Receivable Net Debtors – applications Debtor – City of Parramatta Other Debtors – Bio Banking.
TOTAL NET RECEIVABLES
- Receivables (continued)
- Inventories and other assets
- Inventories and other assets (continued)
- Investment property
- Payables and borrowings
Credit losses are measured as the present value of the difference between the cash flows the company owes under the contract and the cash flows expected to be received. The carrying amount of the asset is reduced and the amount of the loss is recognized in profit or loss.
TOTAL PAYABLES AND BORROWINGS
Provisions
TOTAL PROVISIONS
Provisions (continued)
Provisions are measured at the present value of management's best estimate of the expenditure necessary to settle the current obligation at the reporting date. Obligations for salaries and wages, including non-monetary benefits, annual leave and accumulated sick leave, which are expected to be fully settled within 12 months after the end of the period in which the employees provide the associated benefit, are recognized as employee benefits until the end of the accounting period and are measured at the amounts that are expected to be paid when the obligations are met. The liability for long service leave and annual leave that is not expected to be fully settled within 12 months after the end of the period in which the employees perform the related service is recognized in the provision for employee benefits and measured as the present value of expected future payments to be made in connection with services provided by employees up to the end of the reporting period using the projected unit credit method.
Accumulated profits, revaluation provisions, changes in accounting policies, changes in accounting estimates and errors (continued).
Statement of cash flows – additional information
Commitments
Contingencies and other liabilities/assets not recognised
- Guarantees
Contingencies and other liabilities/assets not recognised (continued)
Contingencies and other liabilities/assets not recognised (continued)
- Other liabilities (i) Insurance
Fines and compulsory income, the result of the Council's sending of infringement notices, are followed up and collected by the Infringement Processing Office. At the end of the year, therefore, there is a potential asset due to the Council representing issued but unpaid infringement notices. Due to the limited information available on the status, value and duration of outstanding notices, Council is unable to determine the value of outstanding revenue.
Financial risk management
Financial risk management (continued)
To measure expected credit losses, non-rate debtors and annual fees are grouped based on common credit risk characteristics and days past due. Payables and borrowings are both subject to liquidity risk – the risk that insufficient funds may be available to meet payment obligations when due. Borrowing is also subject to interest rate risk – the risk that movements in interest rates may adversely affect funding costs and debt service requirements.
Material budget variations
Material budget variations (continued)
Fair value measurement
Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
Fair value measurement (continued)
Level 2
The municipality's land was revalued on 30 June 2019 in accordance with the Fair Valuation Policy set by the Local Government Office. Financial Statements 2019 lease Council Financial Statements Year Ended 30 June 2019 Certificate of Developer Contributions (Continued) CONTRIBUTIONS - IN FRAMEWORK PLAN NUMBER PLANNING PLAN 6 - Extractive Industries PLANNING PLAN NUMBER 8 - Rouse Hill facilities ge spatial unity facilities ( specify ). Statement of Developers' Contributions (Continued) $'000 S7.11 CONTRIBUTIONS - NOT IN THE PLAN Drainage Roads Traffic Facilities Parking Lot Open Space Other-.
Local government industry indicators – consolidated
- Operating performance ratio
- Own source operating revenue ratio Total continuing operating revenue (1)
- Unrestricted current ratio Current assets less all external restrictions
- Council information and contact details
Developer Contribution Statement Without Internal Loans (continued) $ '000 S7.11 CONTRIBUTION - UNDER A PLAN CONTRIBUTION PLAN NUMBER 6 - Extractive Industry Roads CONTRIBUTION PLAN NUMBER 8 - Rouse Hill Drainage Roads Community Traffic Facilities Open Space Traffic Facilities Planning Agreement Other. Accounts 2019 employment council accounts year ended 30 June 2019 document of developer contributions without internal loans (continued) CONTRIBUTION - UNDER A PLAN RIBUTION PLAN NUMBER 9 - Castle Hill Town Center Space BUTION PLAN NUMBER - Annagrove Industrial Plant-. Accounts 2019 employment council accounts year ended 30 June 2019 document of developer contribution without internal loan (continued) CONTRIBUTION - UNDER A PLAN RIBUTION PLAN NUMBER 15 - Box Hill Precinct Facilities PLAN Space RIBUTION NUMBER 16 Hill North Precinct Space.
SPECIAL PURPOSE FINANCIAL STATEMENTS
Statement by Councillors and Management Special Purpose Financial Statements
Auditor’s Report
Total revenues from regular operations Expenses from regular operations Employee benefits and own expenses Material and contracts.
NET ASSETS
TOTAL EQUITY
- Significant accounting policies
- Business activities with gross operating turnover more than $2 million a. Child care
- Significant accounting policies (continued)
- Business activities with gross operating turnover less than $2 million Nil
The Council has adopted the principle of "competitive neutrality" in its business activities as part of the National Competition Policy which is being implemented across Australia at all levels of government. However, where the Council does not pay certain taxes which are generally paid by private sector businesses, such as income tax, these equivalent tax payments have been applied to all business activities designated by the Council and are reflected in the Financial Statements for Special Purposes. As a minimum, the business activities must generate a return equal to the 10-year Commonwealth bond rate which is 3.25% at 30/6/19.
END OF AUDITED SPECIAL PURPOSE FINANCIAL STATEMENTS
Accordingly, 'disclosed subsidies' (in relation to national competition policies) represent the difference between the revenue generated by pricing with a 'yield' and the revenue generated by prices set by the Council in a given financial year. The NCP policy statement requires that municipalities with Category 1 businesses "are expected to generate a return on employed capital resources comparable to the return of private companies operating in a similar field." The actual returns achieved by each business activity are disclosed at the foot of each respective income statement.
SPECIAL SCHEDULES
Special Schedules
Plus (or minus) last year's carryover total less any valuation objections raised in the previous year's subtotal. Councils can claim the value of income lost due to valuation objections in any particular year. HillsShire Council's Infrastructure Assets Report as at 30 June 2019 (continued) $'000 Notes: aMaintenance required is the amount identified in Council's asset management plans.
Infrastructure asset performance indicators * consolidated
Buildings and infrastructure renewals ratio (1) Asset renewals (2)
Infrastructure backlog ratio (1)
Asset maintenance ratio Actual asset maintenance
Cost to bring assets to agreed service level
The Hills Shire Council
Management Reporting Format (Applying Matching Principles)
250444 - Les Shore Reserve - Amenities Building (Field 2) - Green Building - Renovated building to create three shops and accessible parking and walkways Investigation required for the structural stability of the communication towers at Hillside Fire Station, SES Headquarters Balcombe Heights Estate 17,960. 710044 - Detailed concept design of the culvert under Terry Road connecting the Mason Road detention basin, Box Hill 82,759. 750111 - Stormwater Network Asset Renewal/Upgrade - High Priority Constructed Stormwater Network - St Pauls Ave Catchment Investigation of the stormwater system within the catchment associated with Eaton Road, West Pennant Hills 100,000.
ITEM-3 BUDGET REVIEW AS AT 31 JULY 2019 THEME: Proactive Leadership
Maintain a strong financial position that supports the delivery of services and strategies and ensures long term
MANAGER FINANCE, INTEGRATED PLANNING &
REPORTING ANEESH ZAHRA
CHANDI SABA EXECUTIVE SUMMARY
32.5m. As there are no Recurrent Budget variations proposed this Review this will not vary the Current Budget
REPORT
This year the budget was prepared with the aim of setting aside 30% - 40% of the general purpose revenue for asset renewal and other future non-cyclical expenses. This revenue set aside is reserved and is referred to in this report as 'Transfer to Reserves'. It is important to control recurring expenses so that these funds can be set aside within these ranges.
Recurrent Operations
Transfer from internal restrictions represents funds that were quarantined by Council decisions in previous years and are now being used for current year expenses. Transfer from external restrictions represents funds that were quarantined by legislation (for example section 7.11 Development grants and grants) in previous years that are now used for expenditure relating to the current year or income relating to the current year.
Capital Purchases
Capital Works
Total increased funding $612k consists of new projects totaling $308k and increased funding to existing projects totaling $304k and are detailed below:.
New Projects $308k
Increased funding for Existing Jobs $304k
Developer Contributions – Projected Balance EOFY
If all budget expenditures and revenues are realized this fiscal year, Section 7.11 expenditures and revenues are expected to be realized this fiscal year, Section 7.11 funds are projected to decrease to $17.7 million by June 30, 2020.
Gap Funding
It is vital for Council to have these plans approved by IPART and the Ministry to charge full contribution rates above the $30,000 per dwelling levy threshold from 1 July 2020.
Bio Banking Activities
Real Estate Assets
Conclusion
IMPACTS Financial
Hills Future
RECOMMENDATION
ATTACHMENTS
Management Reporting Format Page 5–11 Statutory Reporting Format
Listing of Contracts & Other Expenses
The Hills Shire Council Appendix 1 PAGE 29 UNLIMITED CURRENT RATIO (based on actual values) DEBT SERVICE RATIO RATES & ANNUAL FEES COVER RATIO (based on revised budget) RATES, ANNUAL CHARGES, INTEREST & ADDITIONAL CHARGES OUTSTANDING RATIO. Monthly Budget Review 2019/2020 Key Performance Indicators Objective: To assess the adequacy of working capital and its ability to meet short-term obligations for the unrestricted activities of the Board. Objective: To assess the impact of principal and interest payments on the municipality's discretionary income.
ITEM-4 RESTON GRANGE, BELLA VISTA - PROPOSED PEDESTRIAN REFUGE ISLAND
Strategically plan for the North West Sector growth through the development and construction of transport infrastructure,
GROUP: SHIRE STRATEGY, TRANSFORMATION AND SOLUTIONS
ANGELA VERNICOS
PRINCIPAL COORDINATOR – TRAFFIC & ROADS MANAGEMENT
RODNEY PAVITT
SOURCE OF ENQUIRY
It is proposed to build a pedestrian refuge on Reston Grange just north of the intersection of Stock Farm Avenue to provide pedestrians with a safer transition point to access the bus stop (Photo 2). Photo 2: Reston Grange, Bella Vista - location of the proposed pedestrian refuge The construction of the pedestrian refuge will require the bus stop and bus zone located on the east side of Reston Grange opposite Stock Farm Avenue to be moved approximately 20 meters south. A design of the proposed pedestrian refuge island at Reston Grange, Bella Vista has been completed and is attached to this report (Attachment 1).
Parking
The construction of a pedestrian refuge on Reston Grange will improve safety for pedestrians, particularly schoolchildren, who cross Reston Grange to bus stops every day. Enough funds are available in the Minor Traffic Facilities budget to build this pedestrian haven, which is estimated to cost $20,000.
Strategic Plan - Hills Future
Reston Grange, Bella Vista – Pedestrian refuge island design (1 Page)
PRINCIPAL COORDINATOR – TRAFFIC AND ROADS MANAGEMENT
HISTORY
Affected residents and businesses will be notified of road closures in advance through local media, social media and inbox. VMS signs will be posted prior to the event to inform motorists of road closures due to the street parade.
TECHNICAL OFFICER’S RECOMMENDATION TO LTC
The Committee endorse the Traffic Management Plan as submitted by the organisers
The Traffic Management Plan be forwarded to RMS and the Police for their concurrence to hold the event
LTC RECOMMENDATION TO COUNCIL RMS – No comments received
Manager’s Comment
The Kenthurst Fair and Street Parade to be held in Kenthurst Road, Kenthurst on
Council note the Committee’s endorsement of the Traffic Management Plan as submitted by the organisers subject to all road closure and traffic control activities being undertaken
The amended Traffic Management Plan be forwarded to RMS and the Police for their concurrence to hold the event
Kenthurst Fair and Street Parade Traffic Management Plan (23 Pages)
