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MANAGEMENT PLAN 2009—2014

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Table of Contents

Introduction to Narrabri Shire ....................................................................................... 5

Narrabri Shire at a Glance ........................................................................................... 6

From the Mayor… ........................................................................................................ 7

Narrabri Shire Councillors ............................................................................................ 8

Vision and Values ...................................................................................................... 10

Statement of Business Ethics .................................................................................... 11

General Manager’s Summary .................................................................................. 115

Shire Profile ................................................................................................................ 21

State of the Environment Reporting and Environmental Activities ............................. 22

Access & Equity Activities .......................................................................................... 24

Narrabri Shire Economic Profile ................................................................................. 26

Strategic Plan ............................................................................................................. 29

Strategic Projects ....................................................................................................... 47

Human Resources Activities ...................................................................................... 49

Equal Employment Opportunity Policy Statement .................................................... 50

Organisational Structure ............................................................................................ 51

2009/2010 Summary Budget ..................................................................................... 53

2009/2010 Consolidated Summary Budget ...................................................... 54

2009/2010 Working Budget ........................................................................................ 71

2009/2010 Operating Result ............................................................................. 85

Capital Works and Renewal Projects................................................................ 90

Loans Movement 2009/10 ................................................................................ 99

2009/2010 Reserve Movements ..................................................................... 101

2009—2010 Revenue Policy .................................................................................... 103

Five Year Forecast 2009-2014 ................................................................................. 141

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Introduction to Narrabri Shire

Narrabri Shire is an exciting area of regional New South Wales with plenty to offer anyone wishing to pursue a vibrant and busy country lifestyle. Narrabri Shire is a unique mix of traditional agricultural heritage and new emerging business. Narrabri Shire is a modern regional growth centre encompassing a strong business community. The area has diversified from its traditional agrarian base to coal and gas extraction and exploration. The advent of these new resource based industries in conjunction with ancillary business is providing a breadth and depth of job opportunities for the Shire. The topography of the area varies from fertile river plains through to rugged mountain ranges. As the lifeblood of the Shire, the Namoi River meanders through the vast plains. Narrabri Shire Council is a dynamic and progressive organisation across all sectors that it administers. It has staffing levels of approximately 130 professionals and looks after a resident population of over 14,000 people across 13,065 square kilometres. Although Narrabri is the administrative centre of the Shire, the local government area also consists of the towns Wee Waa and Boggabri and the villages of Baan Baa, Bellata, Edgeroi, Gwabegar and Pilliga.

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Narrabri Shire at a Glance

Population: 13,119 people Area: 13,030km2 Distance from Capital Cities Sydney 560km 6 hours drive time Brisbane 580km 6 hours drive time Average Temperatures: Summer 20˚C - 39˚C Winter 0˚C - 20˚C Average Rainfall: 657mm per year Major Industries: Agriculture, retail, mining, gas exploration and extraction, science and development, tourism, construction and agricultural processing and logistics. Major Attractions: The Crossing Theatre, Mt Kaputar National Park, Pilliga State Forest, Australian Cotton Exhibition Centre, Australia Telescope, Historical Museums, Food, Wine and Shopping.

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From the Mayor…

Cr Robyn Faber

As Mayor, I am pleased to introduce Council’s 2009/12 Management Plan. Our Shire is looking forward with confidence to productive agricultural seasons following good summer rains and to commencement of production at the Whitehaven Narrabri North Coal Mine. However, the State Government through its rate pegging policy, amongst many other restrictive policies, will once again limit the ability of Council to meet expectations of ratepayers and residents. These next few years will see Council’s investment income adversely affected by the global economic crisis, reducing our ability to fund essential works. That being said, Council has developed this Management Plan based on strategic planning, with a focus on sustainable growth.

Whilst Council has reluctantly increased rates in accordance with the NSW Government’s directions, the emphasis has been to continue to provide a reasonable level of services and facilities. But, there is no doubt that unless Governments address the serious underfunding of Local Government, that level of service and condition of facilities will deteriorate in future. Throughout this Management Plan, there is a continued commitment to our roads network, with similar levels of maintenance and capital works as last year. The Plan reflects the contribution by our communities through consultation processes for our Growth Management Strategy and Economic Social Plan, both nearing finalisation. Council’s performance under the Management Plan will reflect Best Practice in all areas of operation, with a view to cementing Narrabri Shire as the emerging regional growth centre of north western NSW.

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Narrabri Shire Councillors

Cr Robyn Faber – Mayor 4 Bowen Street

NARRABRI NSW 2390 Contact 0429 202 118

Cr Ken Bates “Ascot”

BOGGABRI NSW 2382 Contact: 0427 434 612

Cr Peter Etheridge 4 Millicent Drive

NARRABRI NSW 2390 Contact: 0428 959 231

Cr Lester Kelly – Deputy Mayor PO Box 581

NARRABRI NSW 2390 Contact: 6792 4375

Cr Conrad Bolton Lot 197, Alma Street

WEE WAA NSW 2388 Contact: 0427 953 000

Cr Chris Buckman 56 Fraser Street

NARRABRI NSW 2390 Contact: 6792 2405

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Cr Ron Lowder 77 Maitland Street

WEE WAA NSW 2388 Contact: 6795 4221

Cr Bevan O’Regan “Moema”

NARRABRI NSW 2390 Contact: 0429 938 641

Cr Leslie Knox 2/8 Macadam Street

NARRABRI NSW 2390 Contact: 0408 261 085

Cr Catherine Redding PO box 168w

NARRABRI WEST NSW 2390 Contact: 0428 953 108

Cr George Sevil “Nowley Lea”

BURREN JUNCTION NSW 2386 Contact: 0427 101 933

Cr John Clements PO Box 175

WEE WAA NSW 2388 Contact: 0437 953 216

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Vision and Values

Our Values Consultation & Facilitation “To deliver services to, and represent the interests of the whole community and provide a quality living environment within available resources.” Innovation Council will always endeavour to be innovative and will follow a path of creative and lateral thinking. Leadership & Teamwork To provide leadership and to evoke a spirit of teamwork within the community and the Council. Effective Communication Effective communication between the Council, the community and staff will, at all times, be of paramount importance. Value for Money The provision of Council services will always be cost effective and efficient. Exemplary Customer Service Council will endeavour to provide the highest level of service to all its customers. Uncompromising Integrity Council’s integrity will be maintained at the highest level at all times. Continuous Review and Development All of Council’s operations will be continually reviewed and quality management practices and state of the art technology will be used where appropriate.

Our Vision

“To deliver services to, and represent the

interests of the whole community

and provide a quality living

environment within available

resources.”

Mission Statement

“To deliver

services to, and represent the

interests of the whole community, facilitate growth in partnership and provide a quality

country living environment within

available resources.”

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Statement of Business

Ethics

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General Manager’s Introduction This statement provides guidance for the private sector when doing business with the Narrabri Shire Council. It outlines Council’s ethical standards and our expectation that goods and service providers and contractors will comply with these standards in all their dealings with us. This Statement also outlines what goods and services external providers and contractors can expect of the Council. Council aim to promote integrity, ethical conduct and accountability throughout. Our staff are expected to maintain high standards of integrity and ethical conduct, consistent with the positions of trust they hold and we expect no less of the service providers and contractors that undertake work for us. This statement is designed to ensure that business relationships between this Council and external private sector service providers and contractors are fair and productive for all. Paul Keech Acting General Manager May, 2009

Our key business principles The principle of best value for money is at the core of Council’s business relationships with private sector suppliers of goods and services. Best value for money does not automatically mean the lowest price. Rather, Council will balance all relevant factors including initial cost, whole-of-life costs, quality, reliability, and timeliness in determining true value for money. Part of obtaining best value for money also includes ensuring all of our business relationships are honest, ethical, fair and consistent. Our business dealings will be transparent and open to public scrutiny wherever possible. Given the nature of some of Council work, there will be times when the details of some business relationships will not be made publicly available. We are committed to the purchase of all goods, equipment and services through established NSW Government contracts systems, where possible and reasonably practical. Where Council does not use this established system, Council will define the reasons for this action.

“Council will balance all relevant factors including initial cost, whole-of-life costs, quality,

reliability, and timeliness in determining true value for

money.”

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What you can expect of us Narrabri Shire Council will ensure that all its policies, procedures and practices related to tendering, contracting and the purchase of goods and services are consistent with best practice and the highest standards of ethical conduct. Our staff are bound by Council’s Code of Conduct. When doing business with the private sector, Narrabri Shire Council staff are accountable for their actions and are expected to:

Use public resources effectively and efficiently. Deal fairly, honestly and ethically with all individuals and organisations. Avoid any conflicts of interest (whether real or perceived).

In addition, all Council procurement activities are guided by the following core business principles:

All potential suppliers will be treated with impartiality and fairness and given equal access to information and opportunities to submit bids.

All procurement activities and decisions will be fully and clearly documented to provide an audit trail and to allow for an efficient performance review of contracts.

Energy efficient equipment, products containing recycled materials and environmentally friendly products will be purchased wherever reasonably possible.

Tenders will not be called unless Council has a firm intention to proceed to contract.

This Council will not disclose confidential or proprietary information.

What we ask of you We require all private sector providers of goods and services to observe the following principles when doing business with Council:

Comply with Council’s procurement policies and procedures.

Provide accurate and reliable advice and information when required.

Declare actual or perceived conflicts of interest as soon as you become aware of the conflict.

Act ethically, fairly and honestly in all dealings with Council.

Take all reasonable measures to prevent the disclosure of confidential Council information.

Refrain from engaging in any form of collusive practice, including offering Council employees inducements or incentives designed to improperly influence the conduct of their duties.

Refrain from discussing Council business or information in the media.

Assist Council to prevent unethical practices in our business relationships.

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Why is compliance important? By complying with our statement of business ethics, you will be able to advance your business objectives and interests in a fair and ethical manner. As all Narrabri Shire Council suppliers of goods and services are required to comply with this statement, compliance will not disadvantage you in any way. Complying with this Council’s stated principles will also prepare your business for dealing with the ethical requirements of other public sector agencies, should you choose to do business with them. You should also be aware of the consequences of not complying with the Council’s ethical requirements when doing business with the Council. Demonstrated corrupt or unethical conduct could lead to:

Termination of contracts Loss of future work Loss of reputation Matters being referred for criminal investigation.

Guidance Notes Incentives, gifts, benefits In general, this Council expects its staff to decline gifts, benefits, travel or hospitality offered during the course of their work. You should refrain from offering any such “incentives” to Council staff. If a gift is accepted, Council requires the staff member to provide a written report and to record the gift in a Public Gifts and Benefits Register. Conflicts of Interest Council staff are required to disclose any potential conflicts of interest. Council extends this requirement to all of our business partners, contractors and suppliers.

Confidentiality All Council information should be treated as confidential unless otherwise indicated. Communication between parties All communication should be clear, direct and accountable to minimise the risk of perception of inappropriate influence being brought to bear on the business relationship. Use of Narrabri Shire Council equipment, resources and information All Council equipment, resources and information should only be used for its proper official purpose.

Should you have any questions regarding this statement or to provide information about suspect behaviour please contact Council: 46-48 Maitland Street PO Box 261 Narrabri NSW 2390 Phone: (02) 67996 866 Fax: (02) 67996 888 Email: council@narrabri.nsw.gov.au

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General Manager’s Summary In preparing its Management Plan Council allocates funding to work towards achieving its Vision which is;

“To deliver services to, and represent the interests of the whole community and provide a quality living environment within available resources”.

Council is evolving its strategic planning from that of an Annual Management Plan with forecasts up to 5 years into the future to that of an Integrated Strategic Plan consisting of;

A Community Plan (10 year timeframe) A Delivery Plan (4 year timeframe ie time between Council elections) and An Annual Management Plan.

As part of this transition Council has determined that the following constitutes Council’s Principal Activities

Leadership & Governance that embraces integrity, equality, fairness and cost effectiveness

Facilitating the ongoing Development of the Local Economy Providing and maintaining a sustainable built and natural environment Ensuring that the Shire is served by Quality Infrastructure Water and Sewerage Services provided in accordance with industry Best Practice Community Wellbeing

In the proceeding four years Council rebuilt its organisation from about 100 employees to about 135. Many policies and procedures were developed and a number of works programs (ie kerb and gutter replacement, footpath replacement, resealing, mowing, collector road and regional construction) initiated. At a strategic workshop in February 2009 Council identified that Customer Service, Economic Development and Public Consultation were areas which presented opportunities for improvement. To this end in 2009/2010 Council will be

Developing the Customer Service skills of staff. Creating an Economic Development Advisory Committee with experts and

representatives from small business, primary industries, and members of the public. Completing the Local Environmental Plan, providing land use zonings that encourage

development being careful to balance land supply with projected demand. Developing Assets Management Plans based on acceptable levels of service. Revising the Social Economic Plan.

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In 2009/2010 Council’s income and expenditure can be summarised as follows;

Total General Fund Income (including a 3.5% rate increase)

Income Source Location Value % of Total

Residential Rates Narrabri $2,242,764 10.2%

Wee Waa $576,857 2.6%

Boggabri $149,069 0.7%

Rural $454,088 2.1%

Subtotal $3,422,778 15.6%

Business Rates Narrabri $823,899 3.8%

Wee Waa $149,386 0.7%

Boggabri $28,156 0.1%

Rural $118,824 0.5%

Subtotal $1,120,265 5.1%

Farmland Rates Shire Wide $4,913,274 22.3%

Mining Shire Wide $364,740 1.4%

Grants (including Capital) State $2,091,857 9.5%

Federal $6,020,800 27.5%

Other $28,300 0.1%

Subtotal $8,140,957 36.9%

Private Works, Interest & other income

Shire Wide $4,094,735

18.6%

Total 22,056,977 100%

Total General Fund Expenditure Total Operating = $ 21,442,191 Total Capital = $ 6,854,151 Grand Total = $ 28,296,342

Town Streets Operating $ 715,884 (Daily Activities, Repairs & Maintenance)

Capital $ 1,958,600 (Asset Creation/Upgrades and Renewals)

Total $ 3,982,499

Rural Roads Operating $ 2,907,388 (Daily Activities, Repairs & Maintenance)

Capital $ 2,075,434 (Asset Creation/Upgrades and Renewals)

Total $ 11,338,631

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General Fund Highlights

Category Narrabri Wee Waa Boggabri Rural

Kerb & Gutter Replacement $ 455,540 $ 137,285 $ 110,160 $ 0

Footpath Replacement $ 153,124 $ 0 $ 27,000 $ 0

Gravel Road Rehabilitation $ 15,000 $ 0 $ 0 $ 387,156

Sealed Road Rehabilitation $ 224,780 $ 143,500 $ 0 $ 420,000

Reseals $ 101,850 $ 42,000 $ 18,025 $ 550,435

Sealed Road Construction $ 166,000 $ 136,500 $ 25,250 $ 440,000

Community Facilities (All) $ 195,000

Parks & Gardens (All) $ 164,449

Boggabri Pool Filtration System $100,000

Top Dress Gately No 2, Dangar, Leitch $ 60,000

Narrabri CBD Footpath Repairs $ 40,000

Nandewar St Rehab (Lloyd-Killarney) $143,760

Grace St Rehab and Shoulder Seal (Wade-Gibbons) $217,770

Collins Park Drainage Replacement $140,000

Forbes Street (Seal Alexander-Ugoa) $ 63,000

Rose Street Lane (North Side George-Charles) $ 80,500

Bald Hill Rd (SR9 Gravel Rehab) $144,078

Millie Rd (SR1 Gravel Road Rehab) $243,078

Millie Rd (SR1 Sealed Road Rehab) $420,000

Millie Rd (SR1 New Seal) $440,000

Coghill Creek Bridge Replacement (Stage 2) $800,000

In February 2009 Council adopted an Asset Management Plan for its Urban and Rural Road Network (excluding bridges). The plans have been prepared in accordance with the Institute of Public Works Engineers Australia National Asset Management System. The life of Councils road infrastructure assets has been set at the upper end of the realistic life range (ie 45 years for a sealed pavement and 15 years for the life of a seal)

With respect to the Urban Road network Council is generally funding a replacement program that will maintain its current asset stock.

The Rural Road network is underfunded to the tune of $5,386,976. To address this Council will need to increase the funding allocated to Rural Roads by 10% (compounded) each year, either by rates, grants or a combination of both. If this issue is not addressed soon residents will see a number of sealed roads returned to gravel roads and gravel roads returned to black soil roads.

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Water and Sewer

All Water Funds Income $ 2,166,588

Operating ($ 1,480,252) (Daily Activities, Repairs & Mtce)

Interest ($ 3,408) Interest Payments

Capital ($1,055,000) (Asset Creation/Upgrades and

Renewal $755,000 )

Loans ($ 2,884 ) Principal Loan Repayments

Total ($375,028)

All Sewer Funds Income $1,870,299

Operating ($1,127,670) (Daily Activities, Repairs & Mtce)

Interest ($ 106,235) Interest Payments

Capital ($645,000) (Asset Creation/Upgrades and

Renewal $390,000 unfunded Dep $478,442 not included)

Loans ($ 115,216) Principal Loan Repayments

Total ($123,822)

Narrabri Water Usage Charge ($/1,000 litres) $0.60 (increase by $0.22)

Narrabri Access Charge $220 (increase by $123.40)

Boggabri Water Usage Charge ($/1,000 litres) $0.70 (increase by $0.14)

Boggabri Access Charge $235 (increase by $38)

Pilliga Water Usage Charge ($/1,000 litres) $0.75 (increase by $0.12)

Pilliga Water Access Charge $350 (increase by $162.00)

Wee Waa Water Usage Charge ($/1,000 litres) $0.60 (increase by $0.16)

Wee Waa Water Access Charge $215 (increase by $113.80)

Gwabegar Water Usage Charge ($/1,000 litres) $0.75 (increase by $0.07)

Gwabegar Water Access Charge $350 (increase by $167.00)

Bellata Water Usage Charge ($/1,000 litres) $0.75 (increase by $0.08)

Bellata Water Access Charge $350 (increase by $55.00)

Water funds Usage Charge doubles after 450kl usage in a year (Ex Nbri)

Narrabri Water Capital Works

Telemetry Upgrade $50,000

Chlorine Installation $65,000

Electrical Upgrades & VSD's $80,000

Magflow Meter Installation $50,000

Iron Removal Treatment Investigation $10,000

Wee Waa Water Capital Works

Telemetry Upgrade $30,000

Chlorine Installation * 2 $45,000

Magflow Meter Installation $20,000

Electrical Upgrades & VSD's $30,000

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Loans, Investments and Reserves Fund Borrowings Repayments (Principal and

Interest)

General $ 7,316,395 $ 833,881

Water $ 51,624 $ 6,363

Sewer $ 1,495,743 $ 221,451

Total $ 8,863,762 $ 1,061,695

Fund Invested Interest

General $ 8,131,000 $ 235,069

Water $ 5,259,000 $ 130,568

Sewer $ 2,110,000 $ 63,297

Total $15,500,000 $ 428,933

The surplus/(deficits) for each fund is (draft management plan):

General ($478,559)

Water ($375,028)

Sewer ($123,822)

Consolidated ($977,409)

The biggest impact on the bottom line is a decrease in investment income (interest) of approximately $1,000,000. Based on the assumptions in the five year forecast the estimated state of the funds in 2013/2014 is;

General ($749,004)

Water $277,426

Sewer ($62,844)

Consolidated ($534,422)

Paul Keech Acting General Manager

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