resourcing strategy 2020/2021 - weddin shire

Weddin Shire Council: Resourcing Strategy Version 1.3 June 2020 1

Resourcing Strategy 2020/2021 incorporating the Council Improvement Plan


Table of Contents

1. Executive Summary ............................................................................................................ 3 Current and Projected Situation ......................................................................................................... 3

2. Objectives for and Structure of this Document ................................................................. 5

3. Council’s Finances .............................................................................................................. 7 3.1 Operating Performance and Sustainability of Council’s General Fund ................................. 7 3.2 Operating Performance and Sustainability of Council’s Sewerage Business ...................... 10 3.3 Use of Borrowings and Treasury Management ................................................................... 11

4. Council’s Infrastructure.................................................................................................... 14 4.1 Valuation and Depreciation of Infrastructure Assets .......................................................... 14 4.2 Condition Rating of Infrastructure Assets ........................................................................... 15 4.3 Delivering the Best Possible Value from Council’s Infrastructure Assets ............................ 16

4.3.1 Operational Programs (Maintenance) ............................................................................ 18 4.3.2 Capital Works Programs (Renewal, Upgrade and New Assets) ...................................... 18

4.4 Risk Management and NSW Government Infrastructure Performance Reporting ............. 19 4.5 Planning for and Reporting on Infrastructure Renewal ...................................................... 20

5. Council’s Organisational Capability and Capacity ............................................................ 23 5.1 Building Capability and Capacity via Collaboration with other Councils ............................. 23 5.2 Identifying Opportunities for Improvement ........................................................................ 24

5.2.1 Assessing Council’s Organisational Capability and Capacity Overall .............................. 24 5.2.2 Service Reviews ............................................................................................................... 24 5.2.3 Internal Audit .................................................................................................................. 25 5.2.4 Workforce Management Strategy .................................................................................. 26

5.3 Managing the Improvement Program and Improvement Projects ..................................... 26 5.4 Ensuring Effective Leadership.............................................................................................. 27

Appendices ............................................................................................................................... 28 Appendix 1 – Sustainable Best Value Policy ..................................................................................... 28 Appendix 1A – Service Dashboards .................................................................................................. 32

Service Dashboards – Interpretation Guide ................................................................................. 33 Appendix 2 – Council Improvement Plan ......................................................................................... 53 Appendix 3 – Long Term Financial Plan ............................................................................................ 60 Appendix 4 – Asset Management Plans ........................................................................................... 61 Appendix 5 – Organisational Capability Survey ................................................................................ 62 Appendix 6 – Workforce Management Strategy .............................................................................. 64

Document Revision Status

Version Date Description

1.0 January 2018 Draft for discussion

1.1 21 June 2018 Adopted by Council




Acknowledgement

The first version of this Resourcing Strategy was developed with funding assistance from NSW Government under the Fit for the Future Innovation Fund.

It was developed by Common Thread Consulting Pty. Ltd. in collaboration with staff from Forbes, Lachlan and Weddin Shire Councils.

1. Executive Summary

Council’s Sustainable Best Value Policy (Appendix 1) identifies 15 strategic objectives that Council intends to pursue to deliver sustainable best value.

The foundation of this approach is the Delivery Program, where Council aims to provide the best possible value from all its activities considering the limited resources it has available. This Resourcing Strategy goes hand in hand with it. The focus is the resources required to undertake those activities: Council’s finances, infrastructure and the organisation itself.

An Improvement Plan (Appendix 2) identifies actions that Council will undertake to pursue the 15 policy objectives (most of which relate to components of this Resourcing Strategy). These actions then form part of Council’s annual Operational Plan.

This Resourcing Strategy and Improvement Plan are also intended to satisfy requirements from NSW Government to report against performance benchmarks defined in the Fit for the Future program as well as progress with commitments Council made about improvements.

Current and Projected Situation

Council’s finances in its general fund (excluding sewerage) are healthy. The ‘base case’ for the Long Term Financial Plan (Appendix 3) projects a modest operating surplus of around $100,000 p.a. (about 1% of revenues, excluding capital grants) over the next 10 years and around $200,000 in the ‘achievable FFTF improvement scenario’. This means Council can maintain existing services and infrastructure (both ‘day to day’ and longer term).

Council’s sewerage business is also healthy. A grant for the Grenfell Sewage Treatment Plant means there is an opportunity to review financial plans to consider focusing on other priorities such as relining old pipes, rehabilitation of manholes and sewerage for villages.

The majority of community wealth that Council has stewardship over is in infrastructure (valued at $155M) not cash and investments (valued at $10M). This means that if Council is to provide a solid foundation for future generations, it needs to manage this wisely.

Council’s infrastructure is adequately maintained and programs over the next 10 years in Asset Management Plans (Appendix 4) are sufficient to renew most assets in poor condition. Because (as above) Council is projecting an ongoing operating surplus that accounts for the depreciation of infrastructure, it will be able to continue to meet renewal needs in future.

But there are opportunities to improve planning and systems to optimise investment in both maintenance and renewal activities as well as new or upgraded assets (like widening narrow sealed roads, improvements to recreation and sports facilities, etc.).


Council’s organisational capability and capacity is sufficient to deliver ‘day to day’ services, but Council faces considerable challenges with attraction and retention of skilled staff as well as resourcing continuous improvement programs and projects (including utilisation of technology, strategic planning and implementation of a range of management systems).

Council has recognised that there are opportunities to improve its capability and capacity and has developed a framework to do so which features collaboration with its neighbours via the Central West Joint Organisation of Councils and the Mid-Lachlan Alliance.

NSW Local Government reforms were valuable in highlighting the need for Council to ensure it was ‘fit for the future’. This Resourcing Strategy underpins Council’s efforts to stay sustainable and deliver the best possible value to the community. It is also intended to provide confidence to all stakeholders that this is the case.


2. Objectives for and Structure of this Document

The NSW Local Government Act, 1993 establishes integrated planning and reporting (IPR) as the central framework within which local councils operate. The Act also establishes a number of guiding principles for councils, the most fundamental in this context being:

Council should carry out its functions in a way that provides the best possible value to residents and ratepayers,1 and

Council spending and infrastructure investment should be responsible and sustainable, having regard to achieving intergenerational equity.2

Council’s Sustainable Best Value Policy (Appendix 1) establishes its intentions and direction regarding implementation of the IPR framework and application of these guiding principles. Two key documents are Council’s primary tools to achieve sustainable best value:

the Delivery Program, which details the principal activities Council plans to undertake to provide the best possible value within available resources3 (this will be in the format of seven Service Dashboards covering all Council activities – at present, these are included as Appendix 1A of this Resourcing Strategy), and

the Resourcing Strategy, which details available resources4 and identifies objectives to ensure spending and infrastructure investment is responsible and sustainable and that the organisation has the capability and capacity it needs to provide best value.

The figure below emphasises the fact that in Council’s approach to IPR, these two documents go hand in hand (the Resourcing Strategy supports the Delivery Program):

This Resourcing Strategy, then, focuses on three basic types of resources. It is supported by more detailed information in the Appendices, but in summary it considers:

Council’s finances: projected revenue and expenditure as well as use of debt (supported by a Long Term Financial Plan in Appendix 3)

Council’s infrastructure: the current situation and priorities for future investment (supported by Asset Management Plans in Appendix 4)

Council’s organisational capability and capacity: skills, technology and systems needed (supported by a good practice framework in Appendix 5).

1 NSW LG Act, section 8A (1) (b). 2 Key points from NSW LG Act, section 8B under ‘sound financial management’. 3 NSW LG Act, section 404 says that the Delivery Program is to detail “the principal activities to be undertaken by the council to perform its functions (including implementing the strategies set out in the community strategic plan) within the resources available in the resourcing strategy”. 4 NSW LG Act, section 403 says that the Resourcing Strategy is “for the provision of the resources required to perform its functions (including implementing the strategies set out in the community strategic plan)”.


This Resourcing Strategy also includes an Improvement Plan (Appendix 2) structured around the following objectives (defined in the Sustainable Best Value Policy) that Council considers fundamental to delivering sustainable best value.

Council’s Finances

1 Make decisions about resource allocation in the Delivery Program (Service Dashboards) considering competing priorities (best value) and what is affordable and sustainable, in particular aiming to maintain an underlying operating surplus

2 Review and, where appropriate and possible, increase revenues

3 Reduce expenditure while maintaining appropriate, preferred service levels

4

Maintain compliance with Best Practice Management Guidelines for the sewerage

function and revise financial plans annually, taking into account any changes to works in asset management plans (e.g. estimates for major projects)

5 Use borrowings when appropriate (e.g. to finance peaks in infrastructure investment and to help ensure each generation equitably pays for the services they utilise)

6 Implement treasury management strategies to minimise borrowing costs and interest rate risk exposure while maintaining sufficient cash to accommodate outlay expenses

Council’s Infrastructure

7 Keep the asset register up to date; revalue assets as per accounting standards (and OLG Code); seek to improve alignment between asset valuation/service life assumptions and renewal plans; ensure condition data is meaningful and useful

8 Collaborate with other councils in asset revaluation and condition rating to realise economies of scale, improve consistency and confidence in the figures as well as create opportunities for regional strategic planning and advocacy

9

Review Asset Management Plans annually to optimise activities to be undertaken within available resources in each maintenance and capital works program to achieve performance targets in Service Dashboards as well as highlighting issues of concern that may warrant allocation of additional resources to particular programs

Council’s Organisational Capability and Capacity

10 Work co-operatively with other councils to improve organisational capability and capacity (e.g. Mid-Lachlan Alliance, Central West JO, Hawkesbury CC Alliance)

11 Review the main priorities for improvement via an annual Organisational Capability and Capacity Survey to be completed by Council’s leadership team and support this with internal/external audits against similar elements of good practice as appropriate

12 Review all services annually by keeping the Service Review Summary up to date; develop and implement an annual program of detailed service reviews that takes into account the audit program developed by the Internal Audit function

13 Ensure the internal audit function operates effectively and is supported by an appropriate Enterprise Risk Management Plan

14 Implement and review the Program and Project Management Framework to drive the continuous improvement program within Council

15 Undertake programs to equip leaders individually and as a group to realise meaningful change; take action to manage performance issues as required

Actions under each objective are identified in the Improvement Plan. Those for the current year are included in Council’s Operational Plan so they are monitored and reported back.


3. Council’s Finances

Under National Competition Policy, councils must treat water supply and sewerage services as distinct (self-funding) business units. Finances relating to Council’s sewerage business is discussed in section 3.2 (water is supplied by Central Tablelands Water, an associated entity of Council). Section 3.1 considers Council’s ‘General Fund’ finances only.

3.1 Operating Performance and Sustainability of Council’s General Fund

The key consideration in relation to sustainability is operating performance, which is understood in light of Council’s Income Statement in the Annual Financial Statements.

This considers whether Council is spending more than it earns. It is calculated as follows:

Operating Performance

Ratio =

Operational revenue (excl. capital grants & contributions) – expenses

Operating revenue (excl. capital grants & contributions)

The benchmark for sustainability is a ratio of 100%5 (i.e. ‘break even’, revenue is equal to expenditure) although a slightly higher figure (a small surplus) is preferable over the longer term to ensure there is capacity to respond to negative impacts (revenue or expenditure).

The items that make up the majority of operating revenue and expenditure over the current 2018/19 Operational Plan are identified in the charts below. Actual figures are included in the Long Term Financial Plan in Appendix 3.

The key point to note here is that operating performance is based on accrual, not cash, accounting. Operating expenses include the ‘non-cash’ item of depreciation.

Depreciation (discussed in more detail in section 4.1) can be understood to represent the annualised cost of infrastructure (taking account of long term renewal needs, e.g. a road won’t need to be renewed for 50 years, but people are using it).

5 refer https://www.ipart.nsw.gov.au/files/sharedassets/website/trimholdingbay/assessment_methodology_-_methodology_for_assessment_of_council_fit_for_the_future_proposals_-_june_2015.pdf page 41.

https://www.ipart.nsw.gov.au/files/sharedassets/website/trimholdingbay/assessment_methodology_-_methodology_for_assessment_of_council_fit_for_the_future_proposals_-_june_2015.pdf

https://www.ipart.nsw.gov.au/files/sharedassets/website/trimholdingbay/assessment_methodology_-_methodology_for_assessment_of_council_fit_for_the_future_proposals_-_june_2015.pdf


This accords with principles of intergenerational equity (established in the Local Government Act) because it means that if Council is accounting for depreciation and it is reporting an operating surplus, then the current generation is effectively paying for the cost of its services (whether or not Council actually spends money renewing assets at this time).

It also means that, given it is reporting an ongoing surplus, Council is very likely to be sustainable: if Council has enough revenues to fund its ongoing (‘day to day’) operations and depreciation, it will have enough funds over the long term to invest in renewal of its infrastructure assets and be able to maintain current service levels.

Council’s projected operating performance ratio over the 10 year Long Term Financial Plan (Appendix 3) is charted below based on the ‘Achievable FFTF Improvement Scenario’ along with the last 3 years of actual results (it is vital to consider the longer-term underlying trends rather than results in a particular year) and the current year (yet to be finalised):

While this indicates that Council is sustainable (i.e. Council is projecting an ongoing surplus, i.e. an Operating Performance Ratio over 100%), there are always opportunities to improve. It is noted that even the ‘base case’ for the LTFP shows a modest ongoing operating surplus.

The biggest changes in Council’s operating income and expenses over the past two years (the hump above) are due to significant increases in grants (e.g. Roads to Recovery, Natural Disaster Response Assistance). The improvement from the deficit (negative) result in 2014/15 is also due to an almost $1M decrease in depreciation following the revaluation of transport assets, revising replacement costs and useful lives (see section 4.1).

The introduction of a Special Rate Variation (SRV) generating an additional 30.34% over a 4 year period from 2015 has also improved Council’s financial sustainability. The beneficial impacts of the SRV were larger as grants were obtained for both the Grenfell Swimming Pool and Medical Centre, both of which were proposed to be funded in part via the SRV (thus freeing up SRV funds to improve Council’s financial sustainability generally).

Actuals DeliveryProgram

-$2,000,000

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27

TotalIncomefromContinuingOperations(ex.CapitalGrants)

TotalExpensesfromContinuingOperations

OperatingResultfromContinuingOperationsbeforeCapitalGrants/Contrib

LongTermFinancialPlan


It is important to note that even with this increase from the SRV, Council’s rates are comparable to its neighbours (figures are based on OLG data from 2015/16):

*Young Shire Council figures from 2014/15 used, with a 2.4% rate peg applied

Based on the actual minimum rate peg determinations from IPART over the interim period (1.8% in 2016/17 and 1.5% in 2017/18), the equivalent rates at Weddin due to the SRV would be 11.1% higher than those shown in comparison to the other councils, although some of them may have sought special rate variations over this period also.

Council has three options to improve financial sustainability and its efforts to deliver the best possible value to residents and ratepayers, all of which should be considered. They are identified as sustainability objectives in Council’s Sustainable Best Value Policy:

Objective 1 make decisions about resource allocation in the Delivery Program considering competing priorities (best value) and what is affordable and sustainable, in particular aiming to maintain an underlying operating surplus

Objective 2 review and, where appropriate and possible, increase revenues

Objective 3 reduce expenditure while maintaining appropriate, preferred service levels

Actions to pursue these objectives are identified in the Improvement Plan in Appendix 2.

In addition to Operating Performance, NSW Government included another sustainability indicator in the Fit for the Future program. The Own Source Revenue Ratio is a measure of the degree of control a council has over its operating performance and sustainability.6

Like most rural councils, Weddin Shire Council only met the 60% benchmark (i.e. less than 40% of its revenues come from sources like grants and contributions over which it has little or no control) once the Federal Government Financial Assistance Grant (FAGs) was included.

This method was permitted by OLG because FAGs is a reliable revenue source, however it is worth noting that Council has limited ability to change the composition of its revenues significantly, and so make a significant impact on its Own Source Revenue Ratio.

NSW Government also included an ‘efficiency’ indicator as part of the Fit for the Future program. The Real Operating Expenditure Ratio is a measure of a council’s operating expenditure per head of population.7

6 Refer IPART methodology (see note 5), page 41. 7 Refer IPART methodology (see note 5), page 46.

Council OLGGroup Classification

Average

Residential

Rate

Average

Farmland

Rate

Average

Business

Assessment

TotalRateIncome/

TotalLandValue

WeddinShireCouncil 9 Rural 440 1,350 864 231

ForbesShireCouncil 10 LargeRural 737 2,268 2,636 107

CabonneCouncil 11 LargeRural 590 2,437 530 176

CowraShireCouncil 11 LargeRural 417 1,644 3,017 150

YoungShireCouncil(Hilltops)* 11 LargeRural 584 2,141 2,729 153

TemoraShireCouncil 10 LargeRural 526 1,700 1,295 146

BlandShireCouncil 10 LargeRural 1,037 2,645 1,044 115

AverageofNeighbouringCcls. 648 2,139 1,875 141

AverageofGroup9Councils Rural 375 2,755 757 177


The benchmark is a decrease over time (i.e. the expectation is that councils will realise efficiencies and so spend less money per head of population while maintaining current service levels). The figures take account of inflation and any service improvements (i.e. spending more) that are supported by the integrated planning and reporting process.

Council will reduce expenditure over time and so satisfy the benchmark by undertaking actions in the Improvement Plan (Appendix 2) under objective 2 (above) and within the framework for improving organisational capability and capacity in section 5.

3.2 Operating Performance and Sustainability of Council’s Sewerage Business

As noted above, councils must treat water supply and sewerage services as distinct businesses under National Competition Policy. The same principles apply as to the General Fund, though: the key sustainability measure is operating performance.

Council’s Operational Budget has a surplus of just over $100,000 (around 20% of revenues) in 2018/19, and this performance or better is predicted in future (refer LTFP in Appendix 3). This means Council has sufficient funds to cover ongoing (operating) expenses and can also pay for major capital expenses – asset renewals and upgrades – over the long term since their depreciation is accounted for, even if it needs to be funded by debt (section 3.3).

The Asset Management Plan (AMP) for Sewerage (Appendix 4) highlights that Council faces the renewal of the majority of its sewerage system over the next few years. The Grenfell Sewage Treatment Plant and the bulk of the reticulation network (27.5 out of the 33km of pipes) was built in the early 1940s and so is reaching the end of its useful life.

The current financial plan in the 2013 Strategic Business Plan for Sewerage Services assumed that the costs of renewing the Treatment Plant would have to be met internally, but Council has since secured a grant for this project. This means there is a need to review the financial plan, and potentially an opportunity to focus resources on other priorities e.g. ramping up work on the reticulation or providing sewerage services to villages.

As discussed in section 1.2 of the AMP, Council has taken a simpler approach to complying with the Best Practice Management Guidelines for Water Supply and Sewerage established by the NSW Government’s Office of Water.8 Demonstrating best practice is a prerequisite for payment of a dividend from the surplus of a council’s water supply and sewerage businesses and for accessing financial assistance from NSW government for major works.

While the dividend payment is not an issue (only 8 out of 92 local water utilities paid a dividend in 2015/16), access to grants is (e.g. to help fund major projects such as the Grenfell Sewage Treatment Plant and potentially providing sewerage to villages). The potential for structural changes in the water industry (e.g. as advocated most recently by Infrastructure Australia9) is another important reason to ensure Council complies.

Details of issues requiring attention in relation to the Best Practice Framework are set out in the Sewerage AMP (primarily, this relates to non-residential charges and trade waste fees and charges). Actions to address these are in the Improvement Plan in Appendix 2.

8 Further details: http://www.water.nsw.gov.au/__data/assets/pdf_file/0005/549608/BPMF.pdf 9 http://infrastructureaustralia.gov.au/policy-publications/publications/files/Reforming_Urban_Water_Web_version.pdf

http://www.water.nsw.gov.au/__data/assets/pdf_file/0005/549608/BPMF.pdf

http://infrastructureaustralia.gov.au/policy-publications/publications/files/Reforming_Urban_Water_Web_version.pdf

http://infrastructureaustralia.gov.au/policy-publications/publications/files/Reforming_Urban_Water_Web_version.pdf


The sustainability objective in Council’s Sustainable Best Value Policy relating to financial sustainability of Council’s sewerage business is:

Objective 4 maintain compliance with Best Practice Management Guidelines for sewerage function and revise infrastructure and financial plans where significant changes (e.g. estimates for major projects) are identified.

3.3 Use of Borrowings and Treasury Management

Council reports on its assets and liabilities in the Statement of Financial Position (or ‘Balance Sheet’), part of Council’s Annual Financial Statements.

What stands out immediately in the charts below (which is the ‘consolidated’ figures, i.e. including general fund as well as sewerage) is that infrastructure makes up the majority (83%) of Council’s assets, not cash or investments (the ‘investment’ in Central Tablelands Water is in effect largely made up of the infrastructure, anyway). In fact, Local Government is by far the most ‘asset-intensive’ sphere of government in Australia.10

This is why it is important to take an accrual, not cash, approach to accounting when assessing Council’s operating performance and sustainability (section 3.1).

By measuring the depreciation of assets – not just increases or decreases in cash and investments – it is possible to identify whether Council is consuming or building up (accruing) community wealth considering the total asset portfolio – cash and investments and infrastructure – that Council has stewardship over.

Another implication of the asset-intensive nature of local government is that an appropriate use of borrowings is fundamental to effective financial and asset management (including realisation of intergenerational charging equity). The chart below explains its importance: while depreciation expenses are constant (in real terms over time),11 infrastructure renewal needs are not and so financial strategies need to respond:

when most assets are new, there is a ‘trough’ in renewal need (low expenditure) – potentially, this is a time when debts can be repaid and some cash reserves accrued (this would be a consequence of generating revenue that offsets depreciation)

when most assets are old, there is a ‘peak’ in renewal need (high expenditure) – potentially, this is a time when borrowing is required and cash reserves are utilised

10 p.1 Comrie (2014) Debt is Not a Dirty Word cites research by the Local Government Association of SA that suggests SA councils have approximately 3 times as many assets relative to income as the SA government, and that the SA government has about 3 times as many assets relative to income as the Commonwealth. 11 When measured on a straight-line basis, which is generally appropriate and more equitable across generations because it represents the long-term or annualised cost of infrastructure, taking out the peaks and troughs which some methods of depreciation may result in.

CashandcashequivalentsInvestments(CentralTablelandsWater)ReceivablesInventoriesInfrastructure,property,plantandequipment

CommunityAssetManagedbyCouncil $Million %Total

Cashandcashequivalents 10.6 5.7

Investments(CentralTablelandsWater) 20.3 10.8

Receivables 0.7 0.4

Inventories 0.2 0.1

Infrastructure,property,plantandequipment 155.5 83.0

TOTAL 187.3

CashandcashequivalentsInvestments(CentralTablelandsWater)ReceivablesInventoriesInfrastructure,property,plantandequipment


once those assets are renewed, there is likely to be another ‘trough’ (low expenditure) when loans can be repaid.

As indicated, debt helps Council finance the peak in renewal need. When Council moves past the peak, it then has capacity to repay the loan.

Without the use of borrowings, it is virtually impossible in most circumstances (e.g. major peaks in renewal need, building new infrastructure without grant funding) for Council to achieve the principles of intergenerational equity established in the Local Government Act. Without borrowing, Council needs to save up cash (effectively charging users of the time in excess of cost) to fund peaks in renewal need and new infrastructure (so earlier generations pay for something later generations benefit from).

Maintaining an operating surplus applies the same principle: depreciation represents the annualised cost of services enjoyed by the current generation (they are paying their way if revenue is raised to offset this cost).

Given that there is no ‘peak’ in infrastructure renewal needs in the General Fund at this time (section 4.1), the appropriate use of debt in relation to infrastructure investment (to apply the principles of intergenerational equity in the Local Government Act) is likely to be able to be limited to funding new or upgraded assets, e.g. replacement of Grenfell Pool and construction of Grenfell Medical Centre in conjunction with a satisfactory operating result.

In contrast, there is a significant ‘peak’ in infrastructure renewal needs for the Sewerage Fund. The Grenfell Sewage Treatment Plant was built in 1940 and is now reaching the end of its useful life. Also, the majority of the reticulation network (27.5 out of 33km) was built in 1942. The replacement of this infrastructure (which makes up the majority of the system) is a multi-generational investment, and so it is appropriate to fund this via debt.

The Strategic Business Plan for Council’s sewerage business had proposed borrowings of around $2M for the Grenfell Sewage Treatment Plant (as discussed in section 3.2). Since this has now been funded via a grant, there is an opportunity to utilise debt to address other issues such as the relining of sewerage mains, rehabilitation of manholes and potentially the provision of sewerage services to villages. These issues are discussed in the Asset Management Plan for Sewerage (Appendix 4). The key issue is having long term infrastructure and financial plans in place to ensure that such works are able to be appropriately accommodated as required and that Council generates sufficient revenues to maintain financial sustainability (Objective 4 in the Improvement Plan).

While appropriate use of borrowings to finance necessary investments is obviously being encouraged, it is preferable to avoid it if Council has sufficient cash to finance such activities and so avoid borrowing costs. Unfortunately, there are legislative restrictions on Council’s ability to utilise restricted investments (e.g. reserves sewer funds) to minimise the need for borrowing.

RenewalNeed(Expenditure)

Depreciation

Debt financefor‘peak’renewal?

2040(ageingassets)2018(newerassets)

$

Repayloansasrenewalneeddecreases?

Reducedebt,accumulatereserves?


Once Council has identified the need to finance activities by borrowing, it is then important to have an appropriate Treasury Management Strategy that aims to keep debt levels as low as Council’s annual budget and long-term financial plan and associated cash flow projections allow and that minimises net interest cost and interest rate risk exposure.

The sustainability objectives in the Sustainable Best Value Policy relating to appropriate use of borrowings and treasury management are:

Objective 5 use borrowings when appropriate (e.g. to finance peaks in infrastructure investment and to help ensure each generation equitably pays for the services they utilise)

Objective 6 implement treasury management strategies to minimise borrowing costs and interest rate risk exposure while maintaining sufficient cash to accommodate outlay expenses.

NSW Government included several ‘infrastructure and service management’ indicators as part of the Fit for the Future program. The Debt Service Ratio is described as an indicator of “whether the council is using debt wisely to share the life-long cost of assets and avoid excessive rate increases”.12

The benchmark is less than or equal to 20% (averaged over 3 years). Council meets this, however it is important to recognise that key industry publications (e.g. Debt is not a Dirty Word, cited at note 10) have emphasised that councils are not making enough use of debt as a means of addressing the financing and intergenerational equity issues discussed above.

A further shortcoming of the Ratio is that it considers both principal and interest charges (principal repayments are not an accrual accounting expense) thereby potentially discouraging councils from applying cash on hand to reduce outstanding debt levels.13

With this in mind, it is important not to focus on the Debt Service Ratio as the measure of ‘healthy’ debt levels, but rather to consider the appropriate use of debt in the context of financing needs (hence, Objective 5 above).

12 Refer IPART methodology (see note 5), page 44. 13 Refer page 4 of John Comrie’s comments on Fit for the Future Ratios prepared for LGNSW at: https://www.lgnsw.org.au/files/imce-uploads/90/LGNSW%20Submission%20-%20Independent%20Review%20of%20FFTF%20Criteria%20%28Comrie%20Supplemen%20%20%20.pdf

https://www.lgnsw.org.au/files/imce-uploads/90/LGNSW%20Submission%20-%20Independent%20Review%20of%20FFTF%20Criteria%20%28Comrie%20Supplemen%20%20%20.pdf



4. Council’s Infrastructure

While it is important to differentiate between finances in Council’s General Fund and Sewerage Funds (which is operated as a distinct business – section 3), the following discussion about managing Council’s infrastructure assets applies across the board.

4.1 Valuation and Depreciation of Infrastructure Assets

If Council’s operating revenues are sufficient to cover ‘day to day’ operating expenses and depreciation expenses, then Council is very likely to be financially sustainable (section 3.1) and to be complying with the principles of the Local Government Act regarding responsible and sustainable spending and infrastructure investment (section 2).

But a meaningful assessment of Council’s financial sustainability depends heavily on how accurate Council’s estimates for depreciation expenses are. There are two basic inputs:

the value of the asset and

how long it will remain in service.

Depreciation is best understood as the cost of asset consumption: if an asset is valued at $50,000 now and will be valued at $20,000 (in today’s prices, i.e. in real terms) in 10 years’ time when it needs to be renewed, depreciation expenses – the value of the asset ‘consumed’ – will average $3,000 per year in real terms.

If financial plans and infrastructure renewal plans are to align, assumptions about the inputs must be consistent, i.e. infrastructure plans need to assume the same values and timing.

The chart below shows the replacement value of different classes of infrastructure assets in Council’s $150M infrastructure asset portfolio (not included: $6M in plant and equipment, $1M in office equipment and furniture and $2M in land).

The value of different categories of assets within each class (e.g. different types of buildings; roads, bridges, etc. in transport) is identified in Service Dashboards in the Delivery Program.

By collecting better information on actual renewal works undertaken, Council can refine assumptions about asset valuation considerably and improve confidence in the figures.

The service life of an asset depends on its rate of deterioration. Longer term trend data tracking changes in asset condition is vital to improve confidence in the figures.

The Local Government Code of Accounting Practice requires councils to revalue their assets on a 5-year cycle, with one of the asset classes above (e.g. transport, buildings, sewer etc.) being revalued each year. The process includes gathering new condition data (section 4.2).

Transport$156M

Buildings$14M

Sewerage$12M

StormwaterDrainage$9M

OtherStructures(Recreation,Pools,etc.)$9M


The revaluation process is an important opportunity to review:

the accuracy of Council’s asset register (detailing what assets Council actually has, what condition they are in and what their remaining useful life is)

the fair value of these assets (usually, but not always, based on the replacement value but then taking into account current asset condition) and

the depreciation expense (determined by the value and service life of the asset).

Valuation and depreciation information, as well as changes in the value of assets on Council’s ‘Balance Sheet’ (e.g. as Council builds new or upgraded assets, disposes and renews them) are reported in Note 9 of Council’s Annual Financial Statements.

Even though asset valuations are audited, there are inconsistencies between councils (i.e. a road in one council area that is in reality similar to one in another area may be valued at a far higher or lower cost per kilometre, and the condition rated differently).

Collaborating with other councils in the revaluation of assets is an important opportunity to improve: it will not only realise economies of scale (the revaluation and condition rating process is time-consuming and costly), but it will improve consistency amongst councils and confidence in the figures as well as creating opportunities for strategic planning on a regional basis and stronger advocacy supported by a consistent picture.

Sustainability objectives in Council’s Sustainable Best Value Policy relating to valuation and depreciation of infrastructure assets – as well as asset condition rating (section 4.2) – are:

Objective 7 undertake asset revaluation in accordance with accounting standards (and OLG Code), seek to improve alignment between asset valuation/service life assumptions and asset renewal plans and to ensure condition data is meaningful and useful

Objective 8 collaborate with other councils in asset revaluation and condition rating to realise economies of scale, improve consistency and confidence in the figures as well as create opportunities for regional strategic planning and advocacy.

4.2 Condition Rating of Infrastructure Assets

Council evaluates the condition rating of its assets using a number of documented methodologies, however Council reports on the condition of its infrastructure assets on the 1 to 5 scale prescribed in the Local Government Code of Accounting Practice.

Rating Condition Description

1 Excellent / Very Good No work required (normal maintenance)

2 Good Only minor maintenance work required

3 Satisfactory Maintenance work required

4 Poor Renewal required

5 Very Poor Urgent renewal / upgrading required


The condition of Council’s infrastructure assets in each main class is shown below.

It is common sense that if assets are relatively new (e.g. buildings), renewal need is likely to be low, if they’re older (e.g. sewerage), renewal need will be higher. This echoes the concepts shown in the figure in section 3.3.

Condition data on Council’s infrastructure assets is critical for a number of reasons:

it is used to determine how new or old assets are, and so their ‘fair value’ as part of the revaluation process (section 4.1)

it is one of the key measures of asset performance (sections 4.3 and 4.4) and so condition data informs future works programs (section 4.5)

Quantifying trends in condition data over the years (rates of deterioration) is essential to improve the accuracy of estimates of service life and so depreciation expenses (section 4.1) and also to identify long term renewal needs, particularly future ‘peaks’ so financial plans can be prepared to meet these needs (section 4.5).

The Australian Government has also flagged recently that Council will need to have significant information on the condition of its assets to support future claims for Natural Disaster Recovery Assistance.

Council reports on the condition of its infrastructure assets in Special Schedule 7 of its Annual Financial Statements. OLG has flagged its intention to introduce auditing of these figures, however due to inconsistencies between councils (section 4.2) this has been delayed. It is important that Council is prepared for such audits when they begin.

Sustainability objectives 7 and 8 (above) cover issues relating to asset condition.

4.3 Delivering the Best Possible Value from Council’s Infrastructure Assets

Local government asset management has simplistically focused on the ‘renewal backlog’ for many years, despite a lack of confidence in the figures and consistency across the industry.

Council’s new approach, established in its Sustainable Best Value Policy (Appendix 1), is to focus on delivering sustainable best value across all its activities, not just infrastructure.

The first page of Service Dashboards (Council’s Delivery Program) considers ‘best possible value’ in terms of objectives in the Community Strategic Plan and from three perspectives:

Performance (meeting community needs and expectations in terms of the quality, functionality and capacity of services and infrastructure established in the context of their willingness to pay, where appropriate)

0

20

40

60

80

100

Transport Buildings Sewerage Stormwater OtherStructures

%inCondition

Poor(4&5)

Average(3)

Good(1&2)


Sustainability (minimising the long term social, environmental and economic cost of Council’s services and infrastructure) and

Risk/Resilience (managing risk to an acceptable level as assessed under Council’s Risk Management Policy and ensuring that Council’s infrastructure and the organisation itself are able to withstand shocks and major change).

The second page of Service Dashboards summarises programs to provide this value including both operations (maintenance) and capital works (renewing, upgrading and building new assets). Performance targets to be achieved for each are identified.14

The details of these programs are then set out in the Asset Management Plans (AMPs) in Appendix 4.15 These are reviewed annually (along with the LTFP in Appendix 3) when Council prepares its annual Operational Plan.

The AMPs include a commentary highlighting issues of concern in relation to particular programs and also longer term trends. The intention is to encourage discussion about the need to modify budgets (allocate more or less funds). The AMPs may identify some projects that are unfunded, including those that Council considers a priority to seek grant funding.

While the majority of Council’s infrastructure cannot realistically be sold without eliminating the service (e.g. selling a road might prevent access to properties), there are some situations where the ‘best value’ option may be for Council to dispose of an asset (e.g. sell an under-utilised building). Such ‘asset disposals’ are also included in the capital works program.

Sustainability objectives in Council’s Sustainable Best Value Policy relating to delivering best possible value from Council’s infrastructure assets are:

Objective 9 review Asset Management Plans annually to optimise activities to be undertaken within available resources in each maintenance and capital works program to achieve performance targets in Service Dashboards as well as highlighting issues of concern that may warrant allocation of additional resources to particular programs

Continued compliance with Best Practice Management Guidelines for Water and Sewerage (Objective 4, discussed in section 3.2) is also vital as the guidelines cover infrastructure planning as well as finances.

14 Service Dashboards thus achieve the primary purpose of the ‘Strategic Asset Management Plan’ defined in clause 3.3.2 of ISO 55000 (international standard for asset management – overview, principles and terminology): i.e. they specify how organisational objectives (from the Community Strategic Plan – on page 1) are to be converted into asset management objectives (in Council’s Delivery Program – on page 2). Other elements of the SAMP (the approach for developing AMPs and the role of the AM system in supporting the achievement of AM objectives) are achieved via this Resourcing Strategy. 15 These AMPs achieve the primary purpose of AMPs defined in clause 3.3.3 of ISO 55000 as they specify the activities, resources and timescales required for an individual asset or group of assets to achieve the organisation’s asset management objectives.


4.3.1 Operational Programs (Maintenance)

Infrastructure maintenance is vital to ensure assets perform effectively (meet user needs and expectations), don’t fail prematurely (which is unsustainable, costing more in the long run) and minimise risks to users (and also Council’s public liability risk16).

A systematic approach to maintenance enables Council to realise significant operational efficiencies. It is also vital in minimising public liability risk.

Council is developing a computerised maintenance management system to drive the following process for transport infrastructure (finalising it is an Action in the Improvement Plan in Appendix 2):

Some operational activities (e.g. cleaning public toilets) are simply undertaken on a pre-determined schedule, but most are undertaken following the identification of defects.

Once a defect is identified, it is prioritised based on risk and having regard to Council’s adopted performance targets (referenced in Service Dashboards and detailed in the AMPs) which include both:

an ‘intervention level’ (e.g. height of grass before mowing, roughness of an unsealed road before grading) and

a ‘response time’ (e.g. the time it should take Council to respond).

Note that these are performance targets, not standards, as Council cannot meet them at all times (e.g. after a major flood event). Council’s objective – identified in Service Dashboards – is to meet these targets 90% of the time (actual performance results will help refine this).

Urgent issues (e.g. a defect that is a significant risk to users of the infrastructure) receive immediate attention, but most are scheduled in a program to maximise efficiencies (e.g. minimise travelling by actioning all defects in an area).

It is important to recognise that due to budget constraints, low priority defects may not be actioned and some defects may not trigger action via Council’s adopted intervention levels.

Each AMP includes a Maintenance Management Plan in Appendix 1, covering the issues outlined above.

4.3.2 Capital Works Programs (Renewal, Upgrade and New Assets)

Service Dashboards identify key capital works programs in each service area, summarising the criteria for prioritising projects within each program, identifying associated performance targets and measures and summarising revenue and expenditure for each program.

16 Council’s legal responsibilities to maintain the road network are set out in the Roads Act, 1993. The Civil Liability Act, 2002 provides certain legal protections, subject to Council being able to demonstrate it has fulfilled a range of requirements. Council’s system outlined below is modelled on Best Practice Manuals produced by StateWide Mutual (Council’s insurer) to ensure these requirements are met.

Defectidentification(byinspectionorcustomerrequest)orscheduledactivity

Prioritisation basedonriskandmeetingperformancetargets(i.e.interventionlevelsandresponsetimes)

Scheduling repairsorpreventativemaintenancetomanagerisk,maximiseefficienciesandmeet

performancetargetswithinbudgets

Completionandsign-off,performancereporting


The AMPs then have the detail behind these capital programs, in particular:

commentary on the current situation (where are the issues of concern?)

forecasts for the future (will the situation get better or worse?) based on funding allocated in the Long Term Financial Plan for the program

additional criteria for project prioritisation (where applicable)

further details about funding arrangements (particularly sources of and potential for grants as well as restrictions for ongoing grant programs)

performance measures and targets (most are indicative only at this time, Council needs to clarify a number of issues – in the improvement actions – to determine what is achievable), which will inform the Agreed Level of Service Ratio (section 4.4).

Critically, the AMPs identify priorities for individual projects within each of the programs.

While those in the current year are ‘locked in’ to the Operational Plan, those in future years are indicative only. They are included to facilitate Council decisions about re-prioritising resources between program areas and to inform investigation and design activities (which will then inform more accurate estimates of projects prior to their inclusion in the Operational Plan).

Council may identify some projects as unfunded. These are included on the basis that Council may change its funding priorities in future or there may be grant funding opportunities (in which case it is important to clarify project priorities and undertake planning to ensure projects are ‘shovel ready’).

It is important to recognise that the level of detail in this framework will improve over time. In particular, future lists will indicate the portions of a project that is ‘renewal’ versus ‘upgrade’ (or new assets) to facilitate projections for the Renewal Ratio and reporting under Fit for the Future (section 4.5).

It is important to note that renewal of existing infrastructure (measured in ratios below) is only one driver of the capital program: this is why it is critical that Council is clear about performance targets established in Service Dashboards and detailed in AMPs.

Actions to address functionality issues (e.g. access to a building) or capacity (e.g. width of a road to cater for heavy vehicles) are often a higher priority than asset renewal, particularly if an asset in poor condition only receives minimal usage. Council distinguishes high and low use assets by an asset hierarchy (section 6 of the AMP), which is also a guide to prioritisation of maintenance activities.

4.4 Risk Management and NSW Government Infrastructure Performance Reporting

The NSW Government Office of Local Government (OLG) has defined a number of performance measures for infrastructure in the Code of Accounting Practice that councils must report on in Special Schedule 7 of the Annual Financial Statements.

Council’s methodology for calculating and reporting on these, along with their importance in Council’s management of its infrastructure is detailed in the AMPs in Appendix 4.


Council has adopted a strong risk management focus calculating the first two measures, both of which were central to assessment of councils under the Fit for the Future program:

Council will meet the Asset Maintenance Ratio (its ‘actual’ maintenance spending will be what is ‘required’, meeting the 100% benchmark) unless maintenance defects with an unacceptable level of risk are identified via the maintenance management system (section 4.3.1) and budget constraints prevent their repair

Council will meet the Infrastructure Backlog Ratio (its ‘cost to bring assets to satisfactory condition’ will be less than the benchmark of 2% of the written down value of its assets) unless it has a considerable number of assets in such poor condition that they represent an unacceptable level of risk

These measures effectively establish a ‘floor’ for the minimum expenditure on assets. The focus is identifying assets with an unacceptable level of risk (as assessed under Council’s Risk Management Policy) due to maintenance defects and/or the need for renewal.

This approach will be auditable as Council will be able to produce a table identifying the particular assets, a risk assessment of the issues and a cost to undertake the works to treat the risk to bring it down to an acceptable level.

A third measure introduced after Fit for the Future is the Agreed Level of Service Ratio. Because it specifically excludes new or upgraded assets, it only tells part of the story (in terms of providing the best possible value from all activities – Objective 1 in Council’s Sustainable Best Value Policy – because Council also needs to consider maintenance, upgrades and non-infrastructure related activities) however it is useful to measure the percentage of assets that are over the condition-based intervention level set by Council, particularly in some asset classes such as roads.

The AMPs include discussion in terms of this ratio, specifically reporting on the percentage of assets that are over the condition-based intervention level set by Council now, and whether that is projected to rise or fall in future based on proposed renewal funding.

4.5 Planning for and Reporting on Infrastructure Renewal

A further performance measure defined by NSW Government in the Code of Accounting Practice that councils are required to report on in Special Schedule 7 is the Renewal Ratio.

Infrastructure Renewals

Ratio =

Asset renewals

Depreciation, amortisation and impairment

As discussed in section 3.3, it is common sense that if assets are in good condition, renewal needs are low but if assets are in poor condition, renewal needs are high.

If estimates for depreciation are accurate, then over the long term, depreciation expenses will equal renewal expenditure (this is Objective 7, discussed in section 4.1 above).


However, the benchmark for the Renewal Ratio is 100%, averaged over only 3 years. Many local government infrastructure assets have service lives of 60, 80 or 100 years so there will be peaks and troughs in a 3-year period. This is why South Australian councils are no longer required to report on this indicator: results were found to be meaningless.17

Where the renewal ratio is meaningful is when it is calculated for individual asset categories and used as an indicator of the rate of asset renewal relative to consumption (i.e. depreciation). This is why it is used in Service Dashboards: but it is used in the context of the consumption ratio (how new or old assets are) and the backlog ratio (assets with an unacceptable level of risk).

The logic behind this analysis is relatively simple, as shown below:18

The renewal ratio over the next 4 years (the green box above) is calculated by dividing the total amount Council plans to spend on renewals over the next 4 years in each asset category (i.e. the figures in the capital works program, section 4.2.3) by the depreciation expenses for the asset category over this period.

The key consideration for Council is not whether the renewal ratio meets the 100% benchmark, but whether budgets are sufficient to meet the actual needs for renewal.

AMPs analyse projected renewal needs relative to budgets and confirm that Council can meet its performance targets for asset renewal (i.e. that funding for renewal is sufficient).

Given that Council’s Operating Performance is healthy (section 3.1), Council will be able to fund asset renewals either by drawing on its cash reserves or by borrowing (section 3.3).

This is why the Operating Performance Ratio is by far the most important measure of Council’s sustainability, not only for its finances but also for infrastructure.

17 Refer page 3 of John Comrie’s comments on Fit for the Future Ratios prepared for LGNSW at: https://www.lgnsw.org.au/files/imce-uploads/90/LGNSW%20Submission%20-%20Independent%20Review%20of%20FFTF%20Criteria%20%28Comrie%20Supplemen%20%20%20.pdf 18 it is important to distinguish the consumption ratio (how much assets are consumed overall, calculated by dividing written down or depreciated value of assets by the total replacement cost) from the consumption rate (annual rate of consumption, measured via depreciation). Depreciation expenses are subtracted from the written down value each year, but the value also goes up with investment in asset renewals.

Value Consumpt'n Backlog Renewal Capital

50,264 70% 0.0% 162% 217%

10,756 70% 0.0% 141% 170%

2,342 76% 0.0% 60% 60%

34,080 56% 0.0% 162% 264%

8,260 56% 0.0% 87% 132%

43,166 35% 3.4% 60% 60%

27,833 85% 0.3% 26% 26%

3,647 85% 3.2% 0% 102%

-

-

81 54% 0.0% 0% 0%

93,455 N/A N/A N/A 0%

273,884 61% 1% 94% 121%

ProgramArea Responsible

MaintenanceofRoad&

BridgeInfrastructure

Manager

Roads

MaintenanceofFootpathsManager

Recreation

RoadMaintenanceCouncil

Contract(RMCC)

Manager

Roads

RoadSafetyPrograms Mgr.Roads

DevelopmentControlsManager

Roads

Aerodromes Mgr.Roads

2017/18 2018/19 2019/20 2020/21 2017/18 2018/19 2019/20 2020/21

FinancialAssist.Grant(Rds) 3,229,060 3,309,790 3,392,530 3,477,340

Flooddamagelocalroads 3,001,512 3,001,512

RoadSafety 5,000 5,130 5,260 5,390 47,390 48,580 49,800 51,050

HVInspectionStn 26,740 27,410 28,100 28,800 6,660 6,840 7,020 7,190

UrbanStreetsMaint. 251,330 258,870 266,640 274,640

KerbandGuttering 10,540 10,830 11,120 11,420

RuralSealedRoadMaint. 148,340 152,580 156,940 161,440

RuralUnsealedRdMaint. 1,666,150 1,817,190 1,767,240 1,617,520

Quarries&GravelPits 5,820 5,970 6,120 6,270

Region'lRdBlockGrnt/Maint. 231,000 231,000 231,000 231,000 380,060 390,750 401,750 413,070

Flooddamageregionalrds 3,821,256 3,821,256

RegionalUnsealed 130,760 134,430 138,210 142,110

TrafficFacilities 141,900 145,930 150,070 154,330 141,900 145,930 150,070 154,330

BridgeMaintenance 16,570 8,540 8,760 8,990

FootpathsandCycleways 74,790 77,090 79,450 81,880

Carparks 10,540 10,980 11,440 11,750

Aerodromes 14,580 14,950 15,330 15,710 215,500 201,500 223,480 213,550

StreetTrees 110,910 115,170 119,640 123,170

StreetCleaning&Bins 298,550 307,320 316,360 325,680

StreetLighting 43,000 43,000 43,000 43,000 227,040 256,070 262,500 269,090

RMCCMaintenance 115,850 119,040 122,320 125,710 115,850 119,040 122,320 125,710

RMCCOrderedWork

TOTAL 10,629,898 3,896,250 3,987,610 4,081,280 10,681,468 4,067,680 4,098,860 3,998,860

ProgramArea Target

90%

Report

Transport&Drg.OtherOps Report

RMCC Report

Aerodromes Report

ProjectArea ResponsibleResurfacingandHeavy

PatchingofSealedRoads

Manager

Roads

SealedRoadRenewal/

UpgradeProgram

Manager

Roads

UnsealedRoadsManager

RoadsBridges Mgr.Roads

FootpathsandCyclewaysManager

Recreation

2017/18 2018/19 2019/20 2020/21 2017/18 2018/19 2019/20 2020/21

RoadstoRecoveryGrant 2,985,765 3,625,107 1,492,883 1,492,883

SealedRdRenew/Upgrade 2,539,000 2,531,497 200,000 554,500

UrbanStreetsRenew/Upgr. 155,000 40,000 100,000 -

LocalRoadReseals 140,013 140,013 140,013 140,013

UnsealedRoadsResheet 696,765 1,393,533 1,692,806 1,438,306

RegionalRds(Block+Repair) 3,242,880 3,313,950 3,386,800 3,461,470

RegionalRdReseals 415,000 528,000 541,200 554,730

RegionalRdRenew/Upgrade 2,537,800 2,481,250 2,525,860 2,571,520

Bridges(IslandCreek) 300,000 - - -

FootpathsandBikeTrack 64,500 69,600 71,968 69,050

KerbandGuttering 20,000 20,000 20,000 20,000

TrafficFacil's/Rd.Furniture - - - -

Aerodromes(reseals) 265,000 265,000

TOTAL 6,228,645 6,939,057 4,879,683 4,954,353 6,868,078 7,203,893 5,556,847 5,613,119

ProjectArea Target

95%

10%

Report

SealedRoadsUrban <X%

SealedRoadsRural <X%

UnsealedRoads Target:

ReferenceDocuments

AssetHierarchies,MaintenanceSpecifications,CyclewayPlan,RMSContracts,Specifications(NATSPEC)forDesign,Constructionand

Maintenance,Section94(DeveloperContributions)Plans,EvolutionMineMOU(withBlandSC)

AllprojectsTarget:CompletionofProjectsinOperationalPlan(%byvalue)

Target:VariationfromBudgetinOperationalPlan

Measure:reportonachievementsincludingareaofroadsealed(withcomparisonstopreviousyears)

Target:%ofroadnetworkwithNAASRAroughnesscount>X

Target:%ofnetworkwithNAASRAroughnesscount>X

PerformanceMeasuresandTargets

ReportonactivitiesundertakeninaccordancewithOperationalPlan

CapitalProjects

SelectionCriteria(forPriorityProjectsList)Resealingtomaintainawaterprooflayerandpreventprematurepavementfailure;includesheavy

patchingofisolatedpavementfailurespriortosealingandmajormaintenance

Renewalofroads,kerb,drainage,etc.inpoorconditionbasedonhierarchy(i.e.amountofuse),

performanceandrisk.New/upgradedinfrastructure(e.g.roadwidening,sealing)basedon

hierarchyanddeficiencies(e.g.performanceandrisk),ofteninformedbyroadsafetyaudits.Renewalofpoorconditionpavement;upgrades(widening,sealing)basedonhierarchy,risk,reducing

maintenance(grading)anddustimpactsonadjacentproperties

Upgradestoaddresscapacityissuesfromheavyvehicles(+onetimberbridgetorenew)

Replacementofpoorconditionpathsbasedonhierarchyandrisk(CBD,areaswithschoolsandaged

care);newpathstofix'missinglinks'.CyclewayprioritiesidentifiedinCyclewayPlan

ProjectAreaSpecificRevenue(otherthanGeneralRates) Expenditure

Compliancewithcontract,financialperformance

RoadSafetyPrograms,planningfornetworkimprovementsandseekingfunding,TrafficCommittee

EnsuringthattransportassetscreatedbydevelopmentmeetCouncilspecificationsandthat

transportimpactsofdevelopmentsareappropriatelyassessedandcontrolled

OperateAerodromesinaccordancewithregulatoryrequirements

ProgramAreaSpecificRevenue(otherthanGeneralRates) Expenditure(excl.Depreciation)


MaintenanceofTransport

Infrastructure

Target:compliancewithinterventionstandardsandresponsetimesinmaintenancespecifications

Measure:reportonmaintenanceaccomplishments(byassettypee.g.numberofpotholes,areaof

footpathsrepaired,lengthofunsealedroadgraded)andnumberofcustomerrequests(pluspublic

liabilityincidents)withcomparisonstospecificationsandpreviousyears


CompliancewithRoadsandMaritimeServicesContractformaintenanceofHenryParkesWayand

'orderedwork'(additionalprojectsbesidesmaintenance)

25Bridges22MajorCulverts

XkmFootpaths&Cycleways

XkmKerbandGutter

OtherTransportAssets*culverts

3Aerodromes

BulkEarthworks

TOTALTRANSPORT

OperationalPrograms

Priorities

Identifydefects(viainspectionsandrequestsfrompublic)andprioritiseactionstomakesafeand

repair(asperrisk-basedMaintenanceSpecificationandefficientprogrammingofwork)



TransportInfrastructure

AssetCategory

554kmReg.SealedPavement

554kmRegionalRoadSeal

82kmRegionalUnsealed

359kmLocalRdPavement

359kmLocalRdSeal

3329kmLocalUnsealed

701SealedPavement

701kmSealedSurface

144kmKerbandGutter

474kmUnsealedRoads

148Concrete/SteelBridges

11TimberBridges

73kmFootpaths

OtherTransportAssets

BulkEarthworks

554kmReg.Rd.Pavement




359kmLocalRdSeal

3329kmLocalUnsealed


XkmKerbandGutter


Aerodromes

554kmReg.Rd.Pavement




359kmLocalRdSeal

3329kmLocalUnsealed


XkmKerbandGutter


Aerodromes

Howneworoldaretheassets?(consumption)Arethereanyhigh-riskrenewalneeds?(backlog)

HowfastisCouncilplanningtorenewthemoverthenext4yearsrelativetotherateofconsumption?(renewal)




Given all of this, of course, the emphasis needs to be on improving the accuracy of assumptions about depreciation and on planning for renewals (sections 4.1 to 4.3). A number of actions are identified in the Improvement Plan (Appendix 2).

If Council is able to keep up with renewal needs, it will be well on the way to applying the principles established in the Local Government Act (discussed in section 2) about responsible and sustainable infrastructure investment and carrying out its functions in a way that provides the best possible value.

At the beginning of Appendix 4 (the AMPs) there is a table summarising capital works programs for each functional class of assets. These figures are aligned to those in Council’s Long Term Financial Plan in Appendix 3. Council is still in the process of distinguishing the renewal ratio for each class of asset within this table.


5. Council’s Organisational Capability and Capacity

If Council is to achieve its policy objective of delivering sustainable best value (Appendix 1), it needs sufficient financial resources and suitable infrastructure to do so.

But Council also needs the capability and capacity within its organisation to undertake the activities in the Delivery Program to deliver that value. The distinction between the terms is:

capacity is about resources, having ‘enough hands’ to do what is required to deliver sustainable best value, whereas

capability is about ‘what those hands can do’: having the competencies, systems and processes, plant and equipment, technology, culture and leadership (the healthy working relationships) necessary to deliver sustainable best value.19

The following sections outline Council’s approach to ensuring it has the capability and capacity it needs within its organisation to deliver sustainable best value.

5.1 Building Capability and Capacity via Collaboration with other Councils

Council is a member of the Central West Joint Organisation of Councils (JO), however it recognises that there is no ‘one size fits all’ approach to working co-operatively with other councils and NSW Government to achieve desired outcomes for the local community.

Historically, the Mid-Lachlan Alliance (MLA) was a mechanism for collaboration amongst Forbes, Lachlan, Parkes and Weddin Shire Councils in relation to a number of activities. A grant from the NSW Government under its Innovation Fund (part of the Fit for the Future program) for a ‘Fitness Campaign’ saw the importance of the MLA reinforced.

The purpose of the MLA for Forbes, Lachlan and Weddin Shire Councils in particular20 is

“to work together, learning and building the capacity we need to stay sustainable and deliver best value to our communities”.

In the first stage of the MLA Fitness Campaign, the councils established a consistent approach to integrated planning and reporting (set out in a similar Sustainable Best Value Policy for each council, Appendix 1). By clarifying the ‘big picture’ in Service Dashboards in a consistent way, it was easier for the councils to compare their organisations.

The councils have also established a consistent approach to continuous improvement, detailed in the following sections. This consistent approach is realising economies of scale (more resources to review operations) and encouraging joint improvement projects.

Council has also fostered a friendship alliance with Hawkesbury City Council that has resulted improved governance processes and the realisation of operational efficiencies.

The sustainability objective in Council’s Sustainable Best Value Policy relating to building organisational capacity and capability via collaboration with other councils is:

Objective 10 work co-operatively with other councils to improve organisational capability and capacity (e.g. Mid-Lachlan Alliance, Central West JO, City-Country Alliance with Hawkesbury City Council).

19 Traditionally, the Resourcing Strategy (as prescribed in LG Act and NSW Govt. guidelines for the IPR Framework) was to include a workforce management plan which generally covered capacity issues, however capability was limited to Council’s workforce rather than considering the other elements identified here. 20 Parkes Shire Council has elected to stay in touch but not actively participate in MLA initiatives at this stage.


5.2 Identifying Opportunities for Improvement

The second stage of the MLA Fitness Campaign (following preparation of a consistent ‘big picture’ via Service Dashboards) was to identify opportunities for improvement. The approach considered both the council organisations as a whole and individual services.

It is important to note that outputs of this process are operational: they are not Council strategy or policy, although outcomes of the reviews will be reported back to Council.

5.2.1 Assessing Council’s Organisational Capability and Capacity Overall

The Organisational Capability and Capacity Survey (Appendix 5) is a simple, systematic approach to assessing Council’s organisation as a whole across all the elements of good practice Council needs in its organisation if it is to deliver sustainable best value.

It is based on the requirements of ISO 55001 (international standard for asset management systems), which closely align to the integrated planning and reporting framework. The ISO requirements are suitable to apply to all activities as the standard is not written specifically for infrastructure asset management (the definition of an asset is ‘anything of value’ and includes financial and non-financial as well as tangible and intangible assets).

The survey is designed to gauge the views of Council’s leadership team on current capability and capacity and so promote discussions about priorities for improvement.

It is also suitable as a reference point for internal and external auditing. OLG has already flagged that there will be audits of asset management systems and reporting (the ISO framework will assist here), and the Auditor General is now empowered to undertake performance audits of any or all activities of 1 or more councils.

The sustainability objective in Council’s Sustainable Best Value Policy relating to assessing Council’s organisational capability and capacity overall is:

Objective 11 review the main priorities for improvement via an annual Organisational Capability and Capacity Survey to be completed by Council’s leadership team and support this with internal/external audits against similar elements of good practice as appropriate.

5.2.2 Service Reviews

The next level down from the assessment of Council’s organisational capability and capacity overall in the survey (above) includes both a high-level review of all services and detailed reviews of individual service areas.

Note that Council reviews its service levels (allocation of its limited resources to particular activities so as to deliver ‘best possible value’) via its Delivery Program. Service reviews, here, are focused on improving the way Council undertakes these activities (although the reviews do identify issues for Council to consider in preparing the Delivery Program).

The high-level review of all services in the MLA Fitness Campaign was undertaken in conjunction with preparation of Service Dashboards based on readily available information gained from discussions with key staff. A Service Review Summary document was prepared summarising the current situation and opportunities for improvement. The intention is that this is to be reviewed annually (as per Objective 12 below).


Some opportunities identified are potential improvement projects to progress via the program management framework (section 5.3). Some services will clearly benefit from more detailed analysis, and are priorities for detailed service reviews in future.

The detailed service reviews undertaken as part of the MLA Fitness Campaign included Information and Communications Technology (ICT) Services as well as Roads, Parks and Customer Service functions.

These were an in-depth analysis by independent subject matter experts, undertaken consistently across the three councils. A specific report was produced for each service at each council, with recommendations for improvements being made for both individual councils and (where relevant) across the MLA. These inform potential improvement projects to progress via the program management framework (section 5.3).

While the intent was to develop templates that could be utilised by staff to review other services internally in future, the conclusion was that a ‘one size fits all’ approach is not appropriate. Traditional service review templates21 were found to be onerous to complete and of limited value given that most of the information required is available in the Service Dashboards and that community engagement about service levels and priorities needs to occur as part of the integrated planning and reporting process generally.

The intention is that Council will identify a list of detailed service reviews to be undertaken annually (as per Objective 12 below). Future detailed reviews will be undertaken similar to those done under the MLA Fitness Campaign: the value is not in completing detailed templates, but rather in in-depth analysis of the current situation and in recommendations made with reference to elements of good practice (the structure of the Service Review Summary includes these two basic elements).

The sustainability objective in Council’s Sustainable Best Value Policy relating to service reviews is:

Objective 12 review all services annually by keeping the Service Review Summary up to date; develop and implement an annual program of detailed service reviews that takes into account the audit program developed by the Internal Audit function.

5.2.3 Internal Audit

Recent amendments to the NSW Local Government Act (yet to be enacted) expand the role of the Internal Audit Committee to become an ‘Audit, Risk and Improvement Committee’22 which keeps under review various issues relevant to this section generally.

This expanded role for the internal audit function aligns with changes in the Act23 regarding the Auditor General (who is now the external auditor of all councils and is also empowered to undertake performance audits of particular councils regarding any or all of their activities): both internal and external audit functions are becoming more comprehensive.

The internal audit function is a key driver of improvements to Council’s organisational capability and capacity. It not only provides independent assurance over the internal controls and risk management framework but also recommends improvements.

21 e.g. Service Delivery Review: A How to Manual for Local Government by ACELG, 2015. 22 Section 428A of the LG Act (currently, requirements are set out in the Internal Audit Guidelines). 23 Section 421B of the LG Act.


Responsibility for the design and implementation of improvements rests with management, however improvements proposed by the Internal Audit function would be discussed with management (particularly Council’s General Manager) and potentially form part of an agreed action plan to improve. Progress with implementation of improvements will be monitored by the Internal Audit Committee.

An internal audit program is developed annually, informed by the higher risk issues identified in Council’s Enterprise Risk Management Plan.

The sustainability objective in Council’s Sustainable Best Value Policy relating to internal audit is:

Objective 13 ensure the internal audit function operates effectively and is supported by an appropriate Enterprise Risk Management Plan.

5.2.4 Workforce Management Strategy

Previous NSW Government requirements for the Resourcing Strategy included the preparation of a workforce management strategy. Provision is made in Appendix 6 for the inclusion of a Workforce Management Strategy under a separate cover. It is anticipated that this will be informed, in particular, by issues identified via the organisational capability and capacity survey as well as service reviews.

5.3 Managing the Improvement Program and Improvement Projects

The third stage of the MLA Fitness Campaign was to establish a Program and Project Management Methodology to ensure continuous improvement is achieved. The distinction between the two is that:

a program is the mechanism whereby Council establishes its desired outcomes and authorises, monitors and reviews implementation of improvement projects, whereas

a project is a temporary organisation established to realise a specific improvement opportunity.

The Methodology includes templates for a number of elements:

a Business Case, which is the justification for undertaking a project based on weighing the estimated costs of investment against the anticipated benefits, offset by associated risks (it remains the reference point against which the continuing viability of a project is tested)

a Project Initiation Document, which defines the project, forms the basis for its management and the assessment of its overall success

a Highlights Report, which is used to monitor projects that are underway and

an End of Project Report, which is used to assess success upon completion (with reference to the Business Case) and identify learnings to apply to future projects.

The templates are also suitable to utilise for other projects within Council (e.g. a project to deliver a particular service outcome).


The majority of activities undertaken under the improvement program including the pursuit of improvement projects are operational in nature. As such, the MLA Executive (made up of General Managers of each of the councils) provides the governance for the majority of the program but where required, policy issues will be referred to Council for consideration.

Program Management Officers have been appointed at each council to coordinate program activities and support Project Leads (staff with primary responsibility for a project).

Progress with Council’s improvement program (including specific improvement projects, where relevant) will be identified and reported on as part of Council’s Operational Plan.

The sustainability objective in Council’s Sustainable Best Value Policy relating to the program and project management framework is:

Objective 14 implement and review the Program and Project Management Framework to drive the continuous improvement program within Council.

5.4 Ensuring Effective Leadership

The fourth and final stage of the MLA Fitness Campaign was a two-phase ‘Connected Leadership Program’ involving tiers 1, 2 and 3 (GM, Director and Manager levels) at each council and across the MLA.

Phase 1 (delivered in November 2017) began with one-on-one sessions to establish the current culture, constraints to change and critical issues. Group workshops were then held to develop a common purpose and identify critical issues and key actions.

Phase 2 (delivered in February 2018) included individual sessions reviewing results of an ‘Occupational Personality Questionnaire’ to inform Personal Behavioural Development Plans and further group workshops, reviewing and building on the outputs from Phase 1.

The Connected Leadership Program is ‘equipping the leadership’, but there is also a need for a performance component. An HR specialist is working with HR departments and leaders at each council to develop and implement performance management strategies.

The sustainability objective in Council’s Sustainable Best Value Policy relating to ensuring effective leadership is:

Objective 15 undertake programs to equip leaders individually and as a group to realise meaningful change; take action to manage performance issues as required.


Appendices

Appendix 1 – Sustainable Best Value Policy

POLICY FOR SUSTAIABLE BEST VALUE

Sustainable Best Value Policy

WEDDIN SHIRE COUNCIL

POLICY NUMBER: XXXX

SUSTAINABLE BEST VALUE POLICY

Adopted:


BACKGROUND

The NSW Local Government Act, 1993 (section 8) establishes a number of guiding

principles, the object of which is to enable councils to carry out their functions in a way that

facilitates local communities that are strong, healthy and prosperous. Council considers the

objective of delivering ‘sustainable best value’ via the Integrated Planning and Reporting

Framework sums up most of the key principles and so communicates the essence of what

Council needs to achieve.

The NSW Government has flagged its intention to monitor Council’s performance against a

number of benchmarks defined as part of the Fit for the Future program and the commitments

Council has made to improvements as part of the program. Council considers that its efforts

to deliver sustainable best value will satisfy these requirements.

The NSW Local Government Act also includes provisions (section 421B) for the Auditor

General to undertake performance audits of all or any particular activities of 1 or more

councils to determine whether the councils are carrying out those activities effectively and

doing so economically and efficiently and in compliance with all relevant laws. Council also

considers that its efforts to deliver sustainable best value will assist Council to satisfy the

requirements of any such audits.

OBJECTIVE

The objective of this policy is to define what sustainable best value is and how Council

intends to realise it via the Integrated Planning and Reporting Framework.

SCOPE

This policy applies to all Council activities including the management of infrastructure assets

(therefore, it serves as Council’s Asset Management Policy).

DEFINITIONS

Sustainable: Council is financially sustainable over the long term when it is able to generate

sufficient funds to provide the levels of service and infrastructure agreed with its community

(source: TCorp Financial Sustainability of the NSW Local Government Sector, 2013)

Best Value: Council is delivering ‘best value’ when, in consultation with the local

community, it allocates its limited resources across all its activities to address priorities in

relation to:

Performance (meeting community needs and expectations in terms of the quality,

functionality and capacity of services and infrastructure established in the context of

their willingness to pay, where appropriate)

Sustainability (minimising the long term social, environmental and economic cost of

Council’s services and infrastructure) and

Risk/Resilience (managing risk to an acceptable level as assessed under Council’s Risk

Management Policy and ensuring that Council’s infrastructure and the organisation

itself are able to withstand shocks and major change)


POLICY

Council will develop documentation under the Integrated Planning and Reporting Framework

– in particular the Delivery Program and Resourcing Strategy – in a way that supports its

efforts to deliver sustainable best value to the community.

Council will develop a Delivery Program detailing the principal activities it will undertake to

perform its functions (including implementing the strategies set out in the Community

Strategic Plan) within the resources available under the Resourcing Strategy and review this

annually.

The Delivery Program will be in the format of Service Dashboards that identify concerns

with the value Council can provide now and in 10 years (based on the funds available in the

Long Term Financial Plan) and the resources Council is investing in that function to facilitate

the prioritisation of Council’s limited resources to the mix of activities that provides the best

possible value overall.

Council will develop a Resourcing Strategy for the provision of resources to perform its

functions and review this annually. The Strategy will be structured to consider Council’s

finances, infrastructure and organisational capability and capacity.

The Strategy will include an Improvement Plan focused on the following sustainability

objectives and identifying the actions that Council intends to undertake to pursue each of

them. These actions will inform Council’s annual Operational Plan and reported on along

with all other activities.


1 Make decisions about resource allocation in the Delivery Program considering

competing priorities (best value) and what is affordable and sustainable, in particular

aiming to maintain an underlying operating surplus


3 Reduce expenditure while maintaining appropriate, preferred service levels

4 Maintain compliance with Best Practice Management Guidelines for water and

sewerage functions and revise infrastructure and financial plans where significant

changes (e.g. estimates for major projects) are identified

5 Use borrowings when appropriate (e.g. to finance peaks in infrastructure investment

and to help ensure each generation equitably pays for the services they utilise)

6 Implement treasury management strategies to minimise borrowing costs and interest

rate risk exposure while maintaining sufficient cash to accommodate outlay expenses


7 Keep the asset register up to date; revalue assets as per accounting standards (and

OLG Code); seek to improve alignment between asset valuation/service life

assumptions and renewal plans; ensure condition data is meaningful and useful

8 Collaborate with other councils in asset revaluation and condition rating to realise

economies of scale, improve consistency and confidence in the figures as well as

create opportunities for regional strategic planning and advocacy

9 Review Asset Management Plans annually to optimise activities to be undertaken

within available resources in each maintenance and capital works program to

achieve performance targets in Service Dashboards as well as highlighting issues of

concern that may warrant allocation of additional resources to a particular program



10 Work co-operatively with other councils to improve organisational capability and

capacity (e.g. Mid-Lachlan Alliance, Central West JO, friendship alliance with

Hawksbury City Council)

11 Review the main priorities for improvement via an annual Organisational

Capability and Capacity Survey to be completed by Council’s leadership team and

support this with internal/external audits against similar elements of good practice

as appropriate

12 Review all services annually by keeping the Service Review Summary up to date;

develop and implement an annual program of detailed service reviews that takes

into account the audit program developed by the Internal Audit function

13 Ensure the internal audit function operates effectively and is supported by an

appropriate Enterprise Risk Management Plan

14 Implement and review the Program and Project Management Framework to drive

the continuous improvement program within Council

15 Undertake programs to equip leaders individually and as a group to realise

meaningful change; take action to manage performance issues as required

RESPONSIBILIITIES

There are a number of points relevant to this policy set out in the Local Government Act.

The role of the governing body is to ensure as far as possible the financial sustainability of

the council and to develop and endorse the community strategic plan, delivery program and

other strategic plans, programs, strategies and policies of the council.

The role of the Mayor is to ensure the timely development and adoption of the strategic plans,

programs and policies of the council and to promote the effective and consistent

implementation of these and to advise, consult with and provide strategic direction to the

General Manager in relation to the implementation of the strategic plans and policies of the

council.

The role of a councillor is to make considered and well informed decisions as a member of

the governing body and to participate in the development of the integrated planning and

reporting framework, to represent the collective interests of residents, ratepayers and the local

community and to facilitate communication between the local community and the governing

body.

The General Manager is to advise the mayor and governing body on the development and implementation of strategic plans, programs, strategies and policies of the council, to provide advice on the appropriate form of community consultation and to prepare, in consultation with the Mayor and governing body, the documentation under the Integrated Planning and Reporting Framework. The General Manager is also to conduct the day-to-day management of the council in accordance with the strategic plans, programs, strategies and policies of the Council.

HISTORY

Version Details

Adopted


Appendix 1A – Service Dashboards

The Service Dashboards that follow are designed (as per Council’s Sustainable Best Value Policy) as an alternative format for the Delivery Program. A review of the Delivery Program is flagged to be undertaken prior to the next formal review in 2021 to improve fiscal responsibility and alignment with Council’s A Better Community (ABC’s) Strategy, at which time their place in this document will be reviewed.


Service Dashboards – Interpretation Guide Service Dashboards – Page 1

Service Dashboards – Page 2

Key issuesofconcernwiththevalueCouncilcanprovidenowandin10yearswiththeresourcesithasavailableinLTFP(plusemergingissuesbeyondthis)fromtheperspectivesof:• performance (meetingcommunityneeds&

expectations:quality/function/capacity),• sustainability (minimising longtermsocial,

environmentalandeconomiccost)and• risk / resilience(avoidingnegative

outcomes,capacitytowithstandshock)

Communitysatisfactionsurveyresultsandtrends

Investmentintheservice(asaproportionoftotalinvestmentinallservices)intermsof:• ongoingactivities(maintenanceand

operations)• new/renewedassets(capital:darkred=

renewal,red=new/upgrades)• depreciation(costofassetconsumption)• totalassetvalue

Servicedescription&strategicobjectivesfromtheCommunityStrategicPlan

Servicename

Short description

KeyobjectivesfromCommunity StrategicPlan

Valuenow

Performance Sustainability Risk/Resilience

Value10years

Performance Sustainability Risk/Resilience

Emerging issues:beyond10years

Communitysurvey

Gap Trend

Sub-service1 1.2 Improving

Sub-service2 -0.3 Declining

Investment(proportion oftotalCouncil)

Operations(inc. maint.)

Capital(renew+new)

Depreciation AssetValue

Summaryofthekeyissues

Summaryofthekeyissues

0 1 2 3 4 5

Importance Satisfaction

0 1 2 3 4 5

Importance Satisfaction0 1 2 3 4 5


0 1 2 3 4 5


ServiceName

Infrastructure

Assetcategories,replacementvalues,consumptionratio(age),renewal ratio,capitalratio(newassets),highresidualriskbacklog

OperationalPrograms

ProgramPriorities

Program1 Priorities Responsibility

Program2 Priorities Responsibility

4 yearBudget Revenue Expenditure

Program 1

Program2

PerformanceMeasures andTargets

Capital Projects

Project SelectionCriteria(informsprioritylist)

Project area1 Criteria Responsibility

Projectarea2 Criteria Responsibility

4 yearBudget Revenue Expenditure

Projectarea1

Projectarea2

PerformanceMeasures andTargets

Reference Documents

Strategicplans,policies,operationalplans,etc.

701SealedPavement

701kmSealedSurface

144kmKerbandGutter

474kmUnsealedRoads


11TimberBridges

73kmFootpaths


StormwaterDrainage

OperationalPrograms(ongoingactivities)• Keyprogramareas,prioritiesandresponsibleofficer• Summary4yearbudgets(revenueandexpenditure)• Performancemeasuresandtargets

ReferenceDocuments (forfurtherinformation)

Infrastructuresupportingtheservice• Assetcategories,quantitiesandcosttorenew• Consumptionratio(100%=assetsarenew,0%=atendoflife)• Backlogratio(proportionofassetsinunsatisfactorycondition)• Renewalratio(renewalspendrelativetodepreciationfornext

4years:willassetsberenewedfasterthanthey’reconsumed?)• Capitalratio(spendonrenewal+newandupgradedassets

next4yearscomparedtodepreciation:growthinassetbase?)

CapitalPrograms(renewalandnew/upgradedassets)• Keyprograms,prioritiesandresponsibilities• Summary4yearbudgets(revenueandexpenditure)• Performancemeasuresandtargets


Dashboard Summary

MajorM

oderateM

inor

Now

10years

01

23

Operations

Cap

ital(1yr.only)

Depreciation

Conce

rnswithValue?(N

ow&

in10years)

Delive

ryProgram

Activity

Perform

ance

Sustainability

Risk/

Resilience

Tran

sport

Sewerageand

Storm

water

Open

Space,Recreation

andPublicToilets

Tourism

andEconomic

Development

CommunityProgram

san

dFacilities

Planning,Building,

Environment&Health

Organ

isationalSupport

01

23

45

60

12

34

56

Income(excl.$2.76MGeneralR

ates&$1.48MGeneralFAGgrant)

Expenditure$Mp.a.

Council’sfunctions:alloperationsaresummarisedonthissinglepage

(furtherdetailsareavailableintheindividualServiceDashboards)

Res

ourcesinve

sted

ineac

hfunction:revenue(blue)andexpenditure(red)foroperations(ongoingactivities);

capitalw

orks(ren

ewalandnew

/upgrad

edassets)aswellasdep

reciation(thecostofassetconsumption).

Ifrevenue(blue)ism

orethanexpen

diture(red)itgeneratesincome,ifitisless,itisfunded

bygeneralrates.

Capitalexpen

ses(assetren

ewal)mustequaldep

reciationoverthelongterm

toavoidassetsbeingusedup.

Conce

rnsab

outthevalueCouncilisab

leto

provide(now/10years)withtheresourcesit

hasavailableinLTFPfromtheperspectivesof:

•perform

ance

(meetingcommunityneed

s&

expectations:quality/function/cap

acity),

•su

stainability

(minim

isinglongterm

social,

environmentalandeconomiccost)an

d•

risk

/resilie

nce

(avoidingnegative

outcomes,cap

acitytowithstandshock)


MajorM

oderateM

inor

Now

10years

01

23

Operations

Cap

ital(1yr.o

nly)

Depreciation

Conce

rnswithValue?(N

ow&

in10years)

Delive

ryProgram

Activity

Perform

ance

Sustainab

ility

Risk/

Resilience

Tran

sport

Sewerageand

Storm

water

OpenSpace,R

ecreation

andPublicToilets

Tourism

andEconomic

Development

CommunityProgram

san

dFacilities

Planning,Building,

Environment&Health

Organ

isationalSupport

01

23

45

60

12

34

56

Income(excl.$2.76MGeneralR

ates&$1.48MGeneralFAGgrant)

Expenditure$Mp.a.


GapSatisfaction

Trend

0.61 improving

0.90 improving

1.09 --

1.00 --

0.68 --

0.63 --

0.61 --

0.27 declining

$2.6MMaintenance $4.3MRenew(1yr.only) $1.5MDepreciation$150

&Operations $-MNew/Upgrade (AssetConsumption)

Investmentinthisservice(red)relativetoallotherservices(blue)

MInfrastructure

ReplacementValue

CommunitySurvey

(2016)

Service

SealedRoadsinTowns&Villages

RuralSealedRoads

RuralRoadShoulders

UnsealedRoads

TownandVilliagefootpaths

FootpathsandCycleways

Bridges

KerbandGuttering

Assetrenewalfundingoverthe

next10yearsissufficienttokeep

upwithdeterioration(fixroadsin

poorcondition)althoughfunding

islimitedforupgradestothe

network;furtherinvestmentin

footpathrenewalsisrequired

Councilwillprioritiseinvestments

inresealsandotheractivities(e.g.

tabledrainmaintenance)toavoid

prematurefailureofpavements

andminimisethelong-termcost

ofitstransportinfrastructure

Someissueswithroadsafetyrisk

andresilienceinthefaceof

significantweathereventswill

remain

EmergingIssues

(Beyond10years)

Council'stransportnetworkisrelativelynew.Asthebulkofthenetworkages,renewalneedswill

increase.GivenroadsmakeupasignificantproportionofCouncil'sbudget,itisimportantthatfinancial

planningtofundtheseworksalignswithlong-terminfrastructureplanning.RetentionofRMCC(state

roadscontract)isvitalgiventheeconomiesofscaleitcreates

Value10years

Performance Sustainability RiskandResilience

6.2Council'stransportinfrastructureismaintainedandimprovedconsistentwiththeassetmgmt.plan

6.6ClassifiedroadsaremanagedonbehalfofRoadsandMaritimeServices

6.10WSCinvestigatesfreighthubopportunities

ValueNow


Communityfeedback(satisfaction

versusimportance)suggeststhere

isadesireforbetterinfrastructure

(butthisneedstobebalanced

againstcost);manyruralroads

needwideningandpavement

strengtheningtocaterforB-

Doubles/highermassvehicles

(bridgesgenerallyOK);significant

lengthsoffootpathsinpoor

condition(alsoCBDaestheticsand

missinglinks)

Councilhasnotbeeninvesting

sufficientlyinresealing(toavoid

prematurefailureofsealedroad

pavements)andneedstoreview

fundinginfuturebuthasbeen

usingacost-effectivemixoflower-

cost'heavypatching'associated

withresealsandhigher-costfull

reconstructiontoaddress

pavementfailures

Councilhasanassetinspection

programinplacebutthereare

opportunitiestoimprove;road

safetyauditsundertaken

(identifyingprioritiestoimprove);

someunsealedroadsarehighly

susceptibletofailureafterrain.

LossofRMSRMCC(stateroads

contract)wouldsignificantlyaffect

Councilintermsofeconomiesof

scale

6.1Counciloperationshavemetreasonablecommunityexpectations

TransportProvisionandmaintenanceoftransportinfrastructure(localandregionalroads,bridges,footpathsandcycleways,

kerbandgutter,signs,guardrail),contractedworksonRMSroads(NewellHighway,HenryLawsonWay),roadsafety

programs.

CommunityStrategic

PlanObjectives

1.CollaborativeWealthBuilding(Strong,ResilientandDiverseLocalEconomy)

1.1Astrongandprogressiveagriculturalsectorismaintained

1.3Essentialinfrastructureandservicestosupportbusinessactivityareavailable

1.8Aproactiveenvironmentexiststosupportresponsiblemining

1.10Advocacystrategiesforallcapitalfunding&policyinitiativesandapplicationsprepared&actioned

2.InnovationinServiceDelivery(Healthy,SafeandEducatedCommunity)

2.5Publichealthandsafetyopportunitiesaremaximisedinappropriatefacilitiesandthrougheffective

integratedprograms

4.CulturallyRich,VibrantandInclusiveCommunity

4.2Recreationalfacilitiesandeventsaremaintainedanddeveloped

5.SustainableNatural,AgriculturalandBuiltEnvironments

5.4Counciloperationsseeanimprovementinenvironmentaloutcomes

6.ShireAssetsandServicesDeliveredEffectivelyandEfficiently

0 1 2 3 4 5



dashboard continues on next page…


12,430 85% 0.0% 154% 154%

6,558 79% 0.0% 238% 238%

31,186 74% 0.6% 5% 9%

18,998 67% 3.5% 53% 53%

10,594 50% 1.5% 79% 79%

15,689 80% 3.3% 0% 0%

16,005 74% 0.0% 72% 72%

1,594 59% 0.8% 0% 91%

4,652 67% 0.4% 0% 125%

2,070 75% 0.2% 0% 0%

30,696 N/A N/A N/A 0%

150,471 72% 1% 64% 71%



InfrastructureOverseer


Contract(RMCC)

RMS

Engineer

DevelopmentControlsDesign

Engineer

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

Town&ShireWorks 650,000 *assumessomegrants 650,000 *note:someactivitiesarecapitalwork

RuralRoads 682,154

TownStreets 190,605

VillageStreets 21,000

RuralRdsShoulders(FAGs) 30,000 40,000 40,000 40,000

StreetLighting 36,000 77,000

Footpaths 7,000

Carparks 2,500

TreePlanting 10,000


RegionalRdShoulders/Spray 30,000

RMCCMaint.+WorkOrders 1,676,000 1,200,000

TOTALTRANSPORT 2,112,000 410,000 420,000 420,000 1,968,105 450,000 460,000 460,000

ProgramArea Target

90%

Report


Aerodromes Report

ProjectArea Responsible

ResurfacingandHeavy


Special

ProjectsEng

SealedRoadRenewal/

UpgradeProgram

Special

ProjectsEng

UnsealedRoads Overseer

Bridges SPE

FootpathsandCyclewaysOverseer,

SPE

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

RoadstoRecovery 214,266

FAGs(localroads) 999,502 78,302

Bridges 394,266

RuralRdsRenew/Upgrade 130,000 305,000 285,000 290,000

Reseals(localrds-FAGs) 200,000 210,000 210,000 210,000

UnsealedRdsgravelresheet 180,000 200,000 215,000 210,000

MainSt(SCCFround1) 768,982 768,982

GrenfellStreetsConstruct'n 80,000 90,000 100,000 110,000

VillageStreets 15,000 10,000 10,000 10,000

KerbandGuttering 40,000 90,000 50,000 55,000 60,000

Footpaths 15,000 66,200 20,000 20,000 25,000

IndustrialAreaDriveways 10,000 10,000 10,000

RegionalRoadsReseals 430,000 300,000 241,000 270,000 250,000

RegionalRoadsPavements 130,000 163,000 148,000 194,000

Reg.RdsTrafficFacilities 50,000 51,000 52,000 53,000

RMSActiveTransportPlan

TOTALTRANSPORT 2,467,750 0 0 0 2,492,750 1,350,000 1,375,000 1,412,000

ProjectArea Target

95%

10%

Report

SealedandUnsealedRoads <X%

Footpaths,Kerb&Gutter <X%

Target:%ofnetworkaboveconditionratingofX(tobedeterminedinconjunctionwithhierarchy)

AssetHierarchies,RMCCcontract


ReferenceDocuments


Allprojects

Target:CompletionofProjectsinOperationalPlan(%byvalue)


Measure:reportonachievementsincludingareaofroadsealed(withcomparisonstoprevious




CapitalPrograms

SelectionCriteria(forindividualprojectslistedinTransportAssetManagementPlan)

Resealingtomaintainawaterprooflayerandpreventprematurepavementfailure;includesheavy



performanceandrisk.New/upgradedinfrastructurebasedonhierarchyandextentofdeficiencies

Renewalofpoorconditionpavement;upgrades(widening,sealing)basedonhierarchy,risk,

reducingmaintenance(grading)anddustimpactsonadjacentproperties

Upgradestoaddresscapacityissuesfromheavyvehicles(noneidentified)


care);newpathstofix'missinglinks'


Infrastructure

Target:compliancewithinterventionstandardsandresponsetimesinmaintenancespecificationsMeasure:reportonmaintenanceaccomplishments(byassettypee.g.numberofpotholes,areaof


OperationalPrograms

Priorities



CompliancewithRoadsandMaritimeServicesContractformaintenanceofNewellHighwayand

HenryLawsonWayand'orderedwork'(additionalprojectsbesidesmaintenance)EnsuringthattransportassetscreatedbydevelopmentmeetCouncilspecificationsandthat




TOTALTRANSPORT


AssetCategory



431kmLocalRoadPavement

431kmLocalRoadSurface

460kmLocalUnsealed


1434Culverts&Causeways

9kmFootpaths&Cycleways

34kmKerbandGutter

TrafficFacilities(signs,lines,etc.)

BulkEarthworks

701SealedPavement

701kmSealedSurface

144kmKerbandGutter

474kmUnsealedRoads


11TimberBridges

73kmFootpaths


BulkEarthworks





460kmLocalUnsealed




34kmKerbandGutter


Aerodromes





460kmLocalUnsealed




34kmKerbandGutter


Aerodromes


…continued from previous page


12,430 85% 0.0% 154% 154%

6,558 79% 0.0% 238% 238%

31,186 74% 0.6% 5% 9%

18,998 67% 3.5% 53% 53%

10,594 50% 1.5% 79% 79%

15,689 80% 3.3% 0% 0%

16,005 74% 0.0% 72% 72%

1,594 59% 0.8% 0% 91%

4,652 67% 0.4% 0% 125%

2,070 75% 0.2% 0% 0%

30,696 N/A N/A N/A 0%

150,471 72% 1% 64% 71%



InfrastructureOverseer


Contract(RMCC)

RMS

Engineer

DevelopmentControlsDesign

Engineer

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

Town&ShireWorks 650,000 *assumessomegrants 650,000 *note:someactivitiesarecapitalwork

RuralRoads 682,154

TownStreets 190,605

VillageStreets 21,000

RuralRdsShoulders(FAGs) 30,000 40,000 40,000 40,000

StreetLighting 36,000 77,000

Footpaths 7,000

Carparks 2,500

TreePlanting 10,000


RegionalRdShoulders/Spray 30,000

RMCCMaint.+WorkOrders 1,676,000 1,200,000

TOTALTRANSPORT 2,112,000 410,000 420,000 420,000 1,968,105 450,000 460,000 460,000

ProgramArea Target

90%

Report


Aerodromes Report


ResurfacingandHeavy


Special

ProjectsEng

SealedRoadRenewal/

UpgradeProgram

Special

ProjectsEng

UnsealedRoads Overseer

Bridges SPE

FootpathsandCyclewaysOverseer,

SPE

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

RoadstoRecovery 214,266

FAGs(localroads) 999,502 78,302

Bridges 394,266

RuralRdsRenew/Upgrade 130,000 305,000 285,000 290,000

Reseals(localrds-FAGs) 200,000 210,000 210,000 210,000

UnsealedRdsgravelresheet 180,000 200,000 215,000 210,000

MainSt(SCCFround1) 768,982 768,982

GrenfellStreetsConstruct'n 80,000 90,000 100,000 110,000

VillageStreets 15,000 10,000 10,000 10,000

KerbandGuttering 40,000 90,000 50,000 55,000 60,000

Footpaths 15,000 66,200 20,000 20,000 25,000

IndustrialAreaDriveways 10,000 10,000 10,000

RegionalRoadsReseals 430,000 300,000 241,000 270,000 250,000

RegionalRoadsPavements 130,000 163,000 148,000 194,000

Reg.RdsTrafficFacilities 50,000 51,000 52,000 53,000

RMSActiveTransportPlan

TOTALTRANSPORT 2,467,750 0 0 0 2,492,750 1,350,000 1,375,000 1,412,000

ProjectArea Target

95%

10%

Report

SealedandUnsealedRoads <X%

Footpaths,Kerb&Gutter <X%


AssetHierarchies,RMCCcontract


ReferenceDocuments


Allprojects



Measure:reportonachievementsincludingareaofroadsealed(withcomparisonstoprevious




CapitalPrograms

SelectionCriteria(forindividualprojectslistedinTransportAssetManagementPlan)

Resealingtomaintainawaterprooflayerandpreventprematurepavementfailure;includesheavy



performanceandrisk.New/upgradedinfrastructurebasedonhierarchyandextentofdeficiencies

Renewalofpoorconditionpavement;upgrades(widening,sealing)basedonhierarchy,risk,

reducingmaintenance(grading)anddustimpactsonadjacentproperties

Upgradestoaddresscapacityissuesfromheavyvehicles(noneidentified)


care);newpathstofix'missinglinks'


Infrastructure

Target:compliancewithinterventionstandardsandresponsetimesinmaintenancespecificationsMeasure:reportonmaintenanceaccomplishments(byassettypee.g.numberofpotholes,areaof


OperationalPrograms

Priorities



CompliancewithRoadsandMaritimeServicesContractformaintenanceofNewellHighwayand

HenryLawsonWayand'orderedwork'(additionalprojectsbesidesmaintenance)EnsuringthattransportassetscreatedbydevelopmentmeetCouncilspecificationsandthat




TOTALTRANSPORT


AssetCategory





460kmLocalUnsealed




34kmKerbandGutter


BulkEarthworks

701SealedPavement

701kmSealedSurface

144kmKerbandGutter

474kmUnsealedRoads


11TimberBridges

73kmFootpaths


BulkEarthworks





460kmLocalUnsealed




34kmKerbandGutter


Aerodromes





460kmLocalUnsealed




34kmKerbandGutter


Aerodromes


This page has been left blank intentionally


GapSatisfaction

Trend

0.39 increasing

$0.3MMaintenancep.a. $0.2MRenew(1yronly) $0.14MDepreciationp.a.$21


MInfrastructure

ReplacementValue

Waterandpowerusagewillbecomemoreimportant(reuseofsewageeffluentmayneedfurther

prioritising);changesinfrequency/severityofstormsmayinfluencefloodingissues

Service

Sewerage

StormwaterDrainage

Investment(proportionoftotalCouncil.note:Sewerageisoperatedasdistinctbusinessesi.e.separateto'General'fund)

EmergingIssues

(Beyond10years)

CommunitySurvey

(2016)

Value10years

RenewingGrenfellSewage

TreatmentPlantwillsignificantly

improveenvironmental

performance;continued

investmentinseweragepipe

reliningwillreduce

blockages/infiltration;stormwater

capacityissueswillremain

(unfunded)

Withoutexternalfundingsupport,

GreenthorpeandQuandialla

sewerwillnotprogress;limited

progressinimplementing

measurestoreducepower

consumption,etc.(nomajor

investmentproposed)

ReplacementofGrenfellSTPwill

addressregulatoryrisks

ValueNow


GrenfellSewageTreatmentPlant

isinneedofreplacement

(currentlyunderway)toaddress

deteriorationandneedfor

upgradetomeetcurrent

environmentalstandards;Council

isinvestinginreliningofsewerage

pipestoreduceblockages

(significantlengthstilltodo);a

numberofstormwaterdrainage

catchments(Grenfell)areunder

capacity(requireupgrade)to

addresslocalfloodingissues

GreenthorpeandQuandialla

unsewered(needtoscopeup

potentialprojectstoseekgrants);

sewereffluentreusesystemin

place(conserveswater);sewer

reliningreducingcosts;other

opportunitiestoreducelong-term

costse.g.preventative

maintenance,targetedrenewal,

upgradestoreducepower

consumption,increaseduseof

renewableenergy

Riskofregulatoryissuesrelatingto

poorperformanceofSTP


SewerageandStormwater

SeweragereticulationandtreatmentforGrenfell(villagesnotsewered).Provisionandmaintenanceofurban

stormwaterinfrastructure(pipesandpits).NotethatSewerageisoperatedasabusinessunit(distinctfrom'general'

fund).Notealsothatpotable(drinking)waterissuppliedbyCentralTablelandsWater(whollyownedbyWeddin,

BlayneyandCabonneCouncils).

CommunityStrategicPlan

Objectives


6.ShireAssetsandServicesareDeliveredEfficientlyandEffectively




5.1EnvironmentalregulationsandcontrolinCouncil’ssphereofoperationsareimplemented

0 1 2 3 4 5




9.4 51% 0% 788% 909%

2.6 44% 0% 36% 36%

0.3 30% 0% 0% 0%

0.0 67% 0% 0% 0%

12.3 49% 0.0% 201% 228%

8.3 70% 0% 0% 0%

0.2 87% 0% 0% 0%

8.6 71% 0.0% 0% 0%


OpertateandMaintain

SewageTreatmentPlant

DirectorEnv.

Services

MaintainSewerage

Reticulation&RecyclingOverseer

Seweragenetwork

protection

DirectorEnv.

Services

StormwaterInfrastructure

MaintenanceOverseer

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

SewerageRates&Charges 541,375

SewerageAdmin/Mgmt. 152,808

SewerageMains&Pumping 36,000

SewageTreatment 106,000

Sewerage-rates,staffcosts 31,730

TOTALSEWERAGE 541,375 - - - 326,538 - - -

StormwaterCharge/Maint. 10,000

TOTALSTORMWATER - - - - 10,000 - -

ProgramArea Target

100%

100%

90%

Report

NetworkProtectionand

ImprovementReport

90%

Report


SewerageDEnv(STP),

DEng(other)

RecycledWaterDirectorEnv.

Services

StormwaterDrainage Dir.Eng.

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

GrenfellSewageTreat.Plant 509,000 520,000

SeweragePipes 250,000

BetterPracticePolicies 10,000

TOTALSEWERAGE 509,000 0 0 0 780,000 0 0 0

StormwaterCapitalProjects 0 0

TOTALSTORMWATER 0 0 0 0 0 0 0 0

ProjectArea Target

95%

10%

Report

IntegratedWaterCycleManagementPlan,SewerageStrategicBusinessPlan,Section64(DeveloperContributions)Plans,ReclaimedWater

ManagementPlan,PollutionResponsePlanforTreatmentPlant

Clearingblockages,fixbreaksinrecyclingmains,respondtootherissuesasrequiredtomeetservice

standards

ReferenceDocuments


Allprojects



Measure:reportonachievementsandkeyprojectsincludingimprovedoutcomesinperformanceandrisk

Renewal:primarilyfocusedonassetsthatareinpoorcondition,withcriticalassets(basedonconsequence

offailure)givenpriority;newandupgradedassetstocaterforfuturegrowth(basedonprojectedlanduse

development)andnetworkcontainment

Maximisingthebeneficialre-useoftreatedsewageeffluent(qualityandquantity)soastoreducedemand

onpotablewatersupplies

Renewalandupgrade:basedonrisk(topersons,property,environment,etc.).

ProjectAreaRevenue Expenditure

Measure:reportonimplementationofactionsfromSewerageStrategicBusinessPlan;notableactionsin

relationtonetworkprotectione.g.tradewaste

MaintenanceofStormwater

DrainageInfrastructure

Target:compliancewithinterventionstandardsandresponsetimesinmaintenancespecifications

Measure:reportonmaintenanceaccomplishments(byassettype)andnumberofcustomerrequests(plus

publicliabilityincidents)withcomparisonstospecificationsandpreviousyears

CapitalPrograms

SelectionCriteria(forindividualprojectslistedinStormwater&SewerageAssetManagementPlan)


OperationandMaintenance

ofSewerageInfrastructure

Target:compliancewithNSWGovernmentBestPracticeGuidelines

Target:portionoftestscomplyingwithEPAlicencesforreclaimedwater

Target:compliancewithmaintenancespecificationsandlevelsofservice

Measure:reportonoperationalactivitiesandmaintenanceaccomplishmentswithreferenceto

specifications,previousyearsandNSWwaterandseweragebenchmarkingreport

OperateGrenfellSewageTreatmentPlanttomeetenvironmentalprotectionlicenseandensurerecycled

effluentmeetsrequirements

Liasonwithusers(tradewaste)ofsewerageinfrastructureaswellasdevelopers(newassets)

ProgramAreaRevenue Expenditure(excl.Depreciation)

Reactivemaintenanceofstormwaterinfrastructure(pipesandpits).Inspectionandproactiverepairsfor

higherrisksites.Ruralculvertsareunder'Transport'

129StormwaterPits

TOTALSTORMWATER

OperationalPrograms

Priorities

TOTALSEWERAGE

3.4kmStormwaterPipes

SewerageandStormwaterInfrastructure

AssetCategory

33kmSeweragepipes


RecyclingSystem

Plant&Equip.

33kmSeweragepipes


RecyclingSystem

Plant&Equip.(XSPSs?)


129StormwaterPits

33kmSeweragepipes


RecyclingSystem



129StormwaterPits

33kmSeweragepipes


RecyclingSystem



129StormwaterPits


GapSatisfaction

Trend

-0.18 --

0.12 --

0.81 --

0.45 increasing

$0.7MMaintenance $0.3MRenew(4yr.avg) $0.15MDepreciation$6.7

&Operations $0.1MNew/Upgrade (AssetConsumpt'n)


MInfrastructure

ReplacementValue

Noissuesofconcernidentified

EmergingIssues

(Beyond10years)

CommunityneedsandexpectationsarelikelytochangeovertimesoitisimportantthatCouncilcontinues

toengagewiththecommunityabouttheirpriorities(asCouncilisdoingwiththeSportandRecreation

Plan2018);significantinvestmentsmadenow(e.g.Grenfellpool)willmeanoverallinfrastructurerenewal

needswillbelowforsometime

ParksandGardens

SportingFacilities

SwimmingPool

PublicToilets

CommunitySurvey

(2016)

Service

Value10years


Communityneeds&expectations

areexpectedtobegenerallymet

intothefuturealthough

QuandiallapoolandLawsonOval

grandstandareunfunded

NeedtoaddressQuandiallapool

issues;opportunitiestoworkwith

othergroupsproviding

recreationalfacilities(identifiedin

SportandRecreationPlan2018)

5.8LevelsofParksServiceinvillagesarereviewedaspartofMLAservicereview


ValueNow


Feedbackfromcommunityisthat

Councilisgenerallymeetingneeds

andexpectations;newpoolat

GrenfellbutQuandiallaneeds

majorwork;increasedfundingfor

parks/sportsmaintenanceaswell

asnewplaygroundsandgardens;

goodpublictoilets;Grandstandat

LawsonOvalclosed(termites)

Quandiallapoolisleaking,has

structuralissuesandfiltration

problems;recycledwaterisused

forirrigationofparkstoconserve

water;volunteersandcommunity

groupsassistwithsomeelements

ofservicedelivery;opportunities

forCounciltoworkwithother

groups(govt./community)

providingrecreationalfacilities

Companydamclassifiedashigh

risk,butwall/spillwayworks

undertakenanddamsafety

managementplaninplace


OpenSpace,RecreationandPublicToilets

Provisionandmaintenanceofopenspace,recreationandpublicfacilitiesincludingparks,reservesandsporting

fields,publictoilets,sportsamenitiesandfacilities,playgrounds,aquaticcentres,skatepark,BBQareas,outdoor

furnitureandexerciseequipment,fencingandlighting.Cemeteriesarecoveredin'Environment'dashboard.

CommunityStrategic

PlanObjectives


1.2WeddinShire'stourismpotentialismaximised:throughmarketing,accommodationandactivities


2.2Healtheducationispromotedanddeveloped,servicesareaccessibleandpeopleareencouragedto

takepersonalresponsibilityfortheirhealth


integratedprograms


4.1Sportingfacilitiesandeventsaremaintainedanddeveloped

4.2Recreationalfacilitiesandeventsaremaintainedanddeveloped

4.5Weddinisseenasencouragingastrongsenseofcommunityandconnectedness

4.6Thecommunityhasownershipofaninclusivesocialactivitiesplanningprogram


0 1 2 3 4 5




3.1 37% 0% 397% 556%

1.9 66% 0% 0% 0%

1.8 29% 0% 0% 0%

6.7 43% 0% 157% 220%


Maintain&Operate

Grenfell&QuandiallaPools

Dir.Env.

Services

MaintenanceofParks&

SportsBuildings&Facilities

DESand

Overseer

OperationalActivitiesParks,

Reserves,SportsfieldsOverseer

Bogolong&CompanyDams Dir.Eng.

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

SwimmingPools 40,000 213,350

GrenfellPoolloan(interest) 159,602

Parks&SportsMaint. 3,000 244,846

Bogolong&CompanyDams 36,000

PublicToilets 125,000

TOTALOPENSPACE&REC. 43,000 - - - 778,798 - - -

ProgramArea Target

90%

Report

Report


OpenSpace,Recreational

Facilities&PublicToilets

Dir.Eng.(D.

Env.bldgs)

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

GrenfellPool(ConstructionWarranty) 140,000

QuandiallaPool 20,000

GrenfellPoolloan(principal) 73,686

CaragabalParkFencing 10,000

TOTALOPENSPACE&REC. - - - - 243,686 - - -

ProjectArea Target

90%

10%

Report

Allinfrastructure Functional

ReferenceDocuments

SportsandRecreationFacilitiesPlan2018-2022;ManagementPlansforParks/Reserves;Masterplanspreparedforpassiveandactiverecreationareas


AllprojectsTarget:CompletionofProjectsinOperationalPlan(%byvalue)


Measure:reportonachievements

Renewedasrequiredtoremainfunctional(condition3orless),withrenewalneedsidentifiedinAMP.

CapitalPrograms

SelectionCriteria(forindividualprojectslistedinAssetManagementPlan)

Renewalandupgrade:basedonprioritiesincludingperformanceobjectives,deficiencies,current/

expectedusage,proximity/availabilityofalternativefacilities,minimisingmaintenancecost&risk




MaintenanceofAllOpen

Space,Recreationaland

PublicFacilities

Target:compliancewithinspectionprogram,maintenanceschedule(programmed)andintervention

standardsandresponsetimes(reactive)inMaintenanceManagementPlan

Measure:reportonmaintenanceaccomplishments(byassettype)andnumberofcustomerrequests(plus

publicliabilityincidents)withcomparisonstopreviousyears

Measure:reportonusageofopenspace,recreationandpublicfacilities,withcomparisonstoprevious

years

MaintenanceandinspectioninaccordancewithDamSafetyManagementPlan

OpenSpace,RecreationandPublicToiletsInfrastructure

AssetCategory

2AquaticCentres(buildings,pool,plant)

ParksEquipt.(play,seats,BBQs,skate)

15Sports/ParksBuildingsandToilets

TOTALOPENSPACE&RECREATION

OperationalPrograms

Priorities

Maintainandoperateinfrastructuretomeethealthstandards,operatefacilitiesinaccordancewith

performancestandards(openinghours)andregulations/codesofpractice

Maintaininaccordancewithmaintenancespecification(cleanasperschedule,identifyandrespondto

defectsbasedonrisk,efficientprogrammingofworkandimpactsonuseofthefacility)

Maintenanceandoperationstomeetspecificationsforparks,playgroundsandspecifictosportsfacilities,

prioritisingthosefacilitieswithhigherusage/criticalityiffundsarelimited.








GapSatisfaction

Trend

0.40 --

-0.30 --

$0.4MMaintenance $0.02MRenew(4yravg.) $0.06MDepreciation$1.5



MInfrastructure

RiskandResilience

WhileCouncil'sactivitieswill

continuetomakeacontribution,

continuedtargetedinvestmentis

requiredtoensuretheeconomy

continuestogrowandperformas

challengeswillremain

ReplacementValue

1.9Thereisapolicypositiononrenewableenergydevelopment

Effortswillneedtocontinueto

strengthenandgrowthelocal

economy

Changesincludingdemographics

andclimatewillneedtobe

anticipatedandrespondedto

EmergingIssues

(Beyond10years)

ItisimportantthatCouncilworkswithitsindustrypartnersandthecommunitytoaddressrisksand

maximiseopportunitiesfromchangesindemographics,agriculture,freight(e.g.inlandrail);waterusersat

Carrabagalisaconcerninrelationtoagriculturalproduction

CommunitySurvey

(2016)

Service

Tourism&EconomicDevelopment

CaravanPark

Thereareopportunitiesto

strengthenandgrowthelocal

economy:NBNuptake,promoting

theareaasatourismdestination

(e.g.WeddinMtns.),regional

directmarketing,further

workshopsandactivitieswith

industrygroupstogrowlocal

businessandpromote

collaboration

Populationdeclinehasplateaued,

butyouthretentionremainsa

problem;RuralNBNconnectivityis

poor;waterusersCarrabagal

Value10years

Performance Sustainability

ValueNow

TourismandEconomicDevelopment

Destination(tourism)andindustry(economic)developmentincollaborationwithstakeholders;facilitatingand/or

stagingevents;landdevelopment;CaravanPark

CommunityStrategic

PlanObjectives



1.2WeddinShire'stourismpotentialismaximised:throughmarketing,accommodationandactivities


1.4Existingbusinesses&newindustriesaresupported&encouragedsoastoincreasejobopportunities

1.5Availabilityoflandzonedfordevelopmentandvacantpremisesisprovidedandpromoted

1.6TheLocalEconomicDevelopmentStrategy(LEDS)establishesmechanismstofosterpartnershipsto

advanceeconomicactivity

1.7TheLEDSprovidesanintegratedpathtoexpandedagedcarefacilitiesandservices

1.10Advocacystrategiesforallcapitalfunding&policyinitiatives&applicationsareprepared&actioned


Councilismakingapositiveimpact

viaitsLocalEconomic

DevelopmentStudy(planning&

engagement),industry-specific

workshops,Hub(VisitorInfo.),

developingnewindustrialland,

taxisubsidy,collaboratingwith

neighboursandpartners;VICis

accredited;CaravanParkcabins

areold(needrenewal)


0 1 2 3 4 5Importance Satisfaction



0.6 36% 0% 86% 86%

1.3 24% 0% 0% 0%

1.9 28% 0% 0% 27%


EconomicDevelopmentED/Tourism

Officer

TourismED/Tourism

Officer

CommercialActivitiesDirector

Corp.Serv.

CaravanPark Dir.Env.S

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

Tourism&EconomicDev't. 20,100 258,988

CaravanPark 65,000 110,800

IndustrialSubdivision 5,000 5,000

CommercialBldg(Bank) 7,000 14,000

HenryLawsonFestival 15,000

TaxiService(Contribution) 40,000

TOTALTOURISM&EC.DEV. 97,100 0 0 0 443,788 0 0 0

ProgramArea Target

EconomicDevelopment Report

Tourism Report

CommercialActivities Report

CaravanPark Report


CaravanPark Dir.Env.S

IndustrialSubdivisionDirector

Corp.Serv.

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

C'vanParkResidence/Office 65,000

PurchaseIndustrialLand 20,000

TOTALTOURISM&EC.DEV. - - - - 85,000 - - -

ProjectArea Target

Allprojects 90%

CapitalPrograms

WeddinLocalEconomicDevelopmentStrategy

Havingsuccessfullydevelopedandsoldanumberofindustrialblockspreviously,Council

intendstocontinuetodosotoencouragedevelopment



Completionofprojects

ReferenceDocuments

Renewalofexistinginfrastructurewherenecessary

SelectionCriteria(forindividualprojectslistedinBuildingsAssetManagementPlan)


Measure:progressonimplementationofactionsfromEconomicDevelopmentStrategy

Measure:progressonimplementationofactionsfromDestinationManagementPlan

Measure:activities

Measure:visitors

TourismandEconomicDevelopmentInfrastructure

AssetCategory

CaravanPark

BankBuilding

TOTALTOURISM&ECONOMICDEV'T

Operationsandmaintenanceinaccordancewithbusinessplan

ProgramArea

OperationalPrograms

Priorities

Implementation,incollaborationwithindustrypartners,ofactionsintheLocalEconomic

DevelopmentStrategyandcoordinatingregularreviewoftheLEDS

VisitorInformationCentre,destinationmarketingandevents(incl.supportforHenryLawson

FestivalCommittee)

Landdevelopment(industrialandresidentialinaccordancewithCouncilstrategies),

managementof(leased)commercialbuildings

SpecificRevenue(otherthanGeneralRates) Expenditure(excl.Depreciation)

CaravanPark

CTCBankBldg

CaravanPark

CTCBankBldg


GapSatisfaction

Trend

-0.18 --

-0.31 --

$0.6MMaintenance $0.5MRenew(4yravg.) $0.2MDepreciation$6.6

$-MOperations $-MNew/Upgrade (AssetConsumpt'n) ReplacementValue


5.6Theheritageofbuiltareasispreserved


integratedprograms

2.7Lifelonglearningopportunitiesareprovidedwithafocusondigitallearningsupportedinfitforpurpose

facilities


4.3Culturalandartsfacilitiesandeventsaremaintainedanddeveloped

4.4PeoplefromdiverseculturesfindWeddinawelcomingandacceptingplace

4.5Weddinisseenasencouragingastrongsenseofcommunityandconnectedness


MInfrastructure

Sustainabilityconcernswillgrow

overtimeunlessCouncil

addressesitssignificantportfolio

ofageingcommunitybuildings

Communityprogramsandfacilities

aswellasemergencyserviceswill

remaincriticaltobuildingand

maintainingcommunityresilience.

Risksassociatedwithpoorcondition

buildingscanbemanagedby

closure(ifrequired)

3.1DemocraticandEngagedCommunitySupportedbyEfficientInternalSystems

EmergingIssues

(Beyond10years)

Councilneedstocontinueworkingwithcommunitygroupsandotherproviderstoidentifyandaddressthe

needsandexpectationsofthecommunitye.g.viaABetterCommunityStrategy,2018

CommunitySurvey

(2016)

Service

Library

GrenfellInternetCentre

Value10years


Communityprogramsand

facilitieswillremainvaluableso

longasCounciladaptstochanging

needsandexpectations(e.g.viaA

BetterCommunityStrategy2018);

CommunityTechnologyCentre

willneedreviewasusagechanges

(morepeoplewithowndevices);

investmentinMuseumand

CommunityArtsbuildingsis

required,butcurrentlyunfunded

ValueNow


Council'scommunityprograms

andfacilities(andcollaboration

withstakeholders)helprealisea

widerangeofoutcomese.g.new

Medicalfacilities,whicharevital

totheShire'sageingpopulation

andimportanttoeconomy

generally.Buildingsofconcern:

Museum&CommunityArts

Councilneedstoreviewits

portfolioofbuildingsandestablish

asustainableassetmanagement

plan(addressingpoorcondition

facilitiesinparticular);alternative

optionsshouldalsobeconsidered

fortaxiservice(e.g.HACCvehicles,

BowlieBus)

Communityprogramsandfacilities

aswellasemergencyservicesare

criticaltobuildingandmaintaining

communityresilience

CommunityProgramsandFacilities

Council’srolevarieswidely,butisoftenundertakenincollaborationwithotherorganisationsandstakeholders:from

directserviceprovider,toprovideroffaciilitiiesoronlyafacilitatorandadvocate.FunctionsincludeGrenfellLibrary;

CommunityTechnologyCentreandHub;ProvisionoftwomedicalcentresinGrenfellaswellashousing;Supportfor

EmergencyServices(RFS,SESandNSWFireBrigades);supportforagedcare

CommunityStrategic

PlanObjectives


1.7TheLocalEconomicDevelopmentStrategyprovidesanintegratedpathtoexpandedagedcarefacilities

andservices


2.1Qualitymedicalfacilitiesareencouraged,appropriatedigitalandphysicalfacilitiesareavailable

2.2Healtheducationispromotedanddeveloped,servicesareaccessibleandpeopleareencouragedto

takepersonalresponsibilityfortheirhealth

2.3Communityandlocaltransportoptionsareencouragedandavailable

2.4Adequateagedcareservicesareprovidedtomeetthecurrentandfutureneedsofthecommunity


6.3StructuralassetsaremaintedandimprovedconsistentwithAssetManagementPlans


3.1Opportunitiesareprovidedtodevelopleadershipskillsinthecommunity

0 1 2 3 4 5




1.33 16% 0% 0% 0%

0.68 46% 0% 0% 5600%

0.06 64% 0% 0% 0%

1.48 49% 0% 0% 0%

0.69 8% 0% 0% 0%

1.46 8% 0% 0% 0%

0.82 56% 0% 0% 0%

0.11 63% 0% 0% 0%

6.6 30% 0% 0% 686%


Provisionofbuildingsused

byCouncilandotherorgs

Dir.Env.

Services

Libraries Librarian

RangerServices Ranger

FoodSafetyInspections Dir.Env.S

EmergencyServices

Dir.Eng.

Services

(LEMO)

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

Library 27,500 103,680

GrenfellInternetCentre 120,000 105,000

Museum 7,500 10,000

Arts(restwithTourism) 73,600

CommunityHub 31,000

MedicalCentres 20,800 30,000

SeniorsWeek&YouthWeek 1,650 1,650

Dwellings 12,272 21,000

SEScontribution 15,000

Fire&RescueNSWcontrib. 25,772

RuralFireService 79,082 275,137

TOTALCOMM.PROG/FAC. 268,804 0 0 0 691,839 0 0 0

ProgramArea Target

Provisionofbuildings Report

Libraries Report

CommunityPrograms Report

RangerServices Report

FoodSafetyInspections Report

EmergencyServices Report


Refurbish,Renewaland/or

NewBuildings/Facilities

Director

Environmen

talServices

LibraryBooksProgram Librarian

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

LibraryResources&Equip. 33,000

MedicalCntr.BurrangongSt 1,400,000

MedicalCntr.WeddinSt 5,689

TOTALCOMM.PROG/FAC 0 0 0 0 1,438,689 0 0 0

ProjectArea Target

90%

10%

Report

ReferenceDocuments

LibraryManagementPlan;ServiceLevelAgreementwithRFSandSES;LocalEmergencyManagementPlan


Allprojects




SelectionCriteria(forindividualprojectslistedinAssetManagementPlan)

Performancedeficiencieswithexistingfacilitiesordemonstratedneedfornewones,usage,

criticality,availabilityofalternativefacilities,abilitytogeneraterevenuesfromtheservicetopay

fortheworks(andongoingoperations/maintenancecosts),positivefeedbackfromcommunity

engagementabouttheproposal.Agencyneedsdetermineemergencyservicesallocations

InaccordancewithLibraryManagementPlan,seektomeetStateLibrarybenchmarks


CapitalPrograms

ProvisionofsupportandfacilitiesforRuralFireService,StateEmergencyServicesandNSWFire

BrigadeinaccordancewithServiceLevelAgreements;provisionofEmergencyOperations

Centre,facilitationofLocalEmergencyManagementandRescueCommittees



Measure:compliancewithagreedrequirementswithusergroups

Measure:participationtrendsandimplementationofactionsfromLibraryStrategicPlan

Measure:analysisoftrendsandactivityreportonoutcomesfromimplementationofSocialPlan

Measure:reportonoutcomesfromimplementationofCompanionAnimalsMgmt.Plan,

Measure:reportonoutcomesfromimplementationofFoodSafetyPlan

Measure:activityreport,implementationofactionsinLocalEmergencyManagementPlan

ImplementFoodSafetyProgramincludingoverseeingeducationandinspectionofpremises.

Housing(3properties-Staff/Drs)

SESHQandshed

TOTALCOMMUNITYFACILITIES

OperationalPrograms

Priorities

Managebuildingsincl.CommunityArts,Museum,MedicalCentres,Housing(staffanddoctors)

andcontributiontoAgedCare

OperateGrenfelllibraryincludingprovisionofresources,stagingeventsandprograms,

implementationofactionsintheLibraryManagementPlan

Controlofcompanionanimals(dogs)inaccordancewithCompanionAnimalsManagementPlan,

strayinglivestock,parkingandotherenforcement

CommunityProgramsandFacilitiesInfrastructure

AssetCategory

DrsSurgery/Residences

MedicalCentre

AgedUnits(contrib.notWSC)

Library

Museum

CommunityArtsCentre


NewMedicalCentre(nodepn.?)

AgedUnits(Proportion?)

Library

Museum

CommunityArtsCentre

Housing(3properties- Drs?Staff?)

SESHQandshed


NewMedicalCentre(nodepn.?)

AgedUnits(Proportion?)

Library

Museum

CommunityArtsCentre

Housing(3properties- Drs?Staff?)

SESHQandshed


GapSatisfaction

Trend

0.60 increasing

0.39 --

0.35 declining

0.05 --

$0.70MMaintenance $-MRenew(4yravg.) $0.05MDepreciation$0.8

&Operations $0.1MNew/Upgrade (AssetConsumption)


MInfrastructure

ReplacementValue

5.1EnvironmentalregulationsandcontrolinCouncil'ssphereofoperationsareimplemented

EmergingIssues

(Beyond10years)

Increasingcommunityexpectationsforregulatorycontrolsbutalsoincreasedcompliancerequirementsfor

Councilasaregulator;difficultyattractingskilledstaff(particularlygivendiversityofissues);30-40years

capacityleftinGrenfelllandfill

CommunitySurvey

(2016)

Service

WasteCollectionandDisposal

EnvironmentalHealth

AnimalControl

Value10years


Futureperformancewillbeheavily

reliantonCouncil'sabilityto

attractandretainsuitably

qualifiedstaffandsecurebackups

intimesofleave,etc.;community

expectationsabouttheservicewill

continuetoincrease

Councilneedstoconsider

alternativewaystoprovidethis

serviceinacosteffectiveway(e.g.

collaborationwithneighbours-

whichwillneedhighlevelsof

consistencybetweencouncils)

Statutorycompliancerisksare

expectedtoincrease;Council's

abilitytoattractandretainsuitably

qualifiedstaff(ifworkingalone)is

likelytobeverydifficult;Floodplain

managementissuesEmuCreek

funded(abletoaddress)butBimbi

isunfunded

ValueNow


Councilgenerallymeets

communityneedsand

expectationsforplanning,building

servicesandpublichealth

(includinglocalaccesstoa

provider)andcomplieswithNSW

governmentbenchmarks(e.g.

timeframesforDAs);needto

improveinternalreferralsforDAs

Councilhasverylimitedcapacity

(nointernalbackup)for

professionalservicesandrelieson

consultantsand/orothercouncils;

engagingconsultantsiscostly;

wastemanagementimprovement

plansforbothvillagesandGrenfell

landfill;lowlevelsof

contaminationinwastestream

Statutorycompliancerisksfor

planning/building/healthneedto

bemanagedcarefully(e.g.engage

consultantstoincreasecapacity,

ensureverificationsystemsin

place);Floodplainmanagement

issues(clearingEmuCreekin

Grenfell,Bimbifloodpaths,

Chinaman'sDam-risktoBimbi)

Cemeteries

Planning,Building,HealthandEnvironment

Activitiestoimprovethebuiltandnaturalenvironmentsincludingtownplanningandbuildingcontrol;Domesticand

commercialwastecollectionanddisposalincludingoperationof8wastemanagementcentres;wasteandrecyclables

collectionforpublicspaces;workingtoreduceillegaldumping;environmentalprotectionprogramsincludingnoxious

weedsmanagement;operationandmaintenanceofcemeteries;rangerservices;publichealth;floodplain

management

CommunityStrategic

PlanObjectives


5.6Theheritageofbuiltareasispreserved

5.7Thereisanenhancementofbroaderlandscapeconnectivityfornativefauna




5.2Wastereductionandrecyclingisencouraged,withafocusonthevillages


5.3Thecommunityismadeawareofsustainablepractices

5.4Counciloperationsseeanimprovementinenvironmentaloutcomes

1.5Availabilityoflandzonedfordevelopmentandvacantpremisesisprovidedandpromoted


0 1 2 3 4 5




0.4 68% 0% 0% 0%

0.3 62% 0% 0% 0%

0.03 64% 0% 0% 0%

0.8 62% 0% 0% 0%


DomesticandCommercial

WasteCollectionOverseer

WasteMgmt.Facility/

Landfill

DirectorEnv.

Services

Cemeteries Overseer

NoxiousWeeds

ManagementNWOfficer

Public&Environmental

Health

DirectorEnv.

Services

TownPlanningDirectorEnv.

Services

BuildingControl Dir.Env.S

FloodplainManagement DirectorEng.

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

TownPlanning 103,500 65,200

BuildingControl 1,200 22,000

Otherlandandbuildings 12,000

GrenfellFloodplainMaint. 26,000

Cemeteries 50,000 72,000

OnSiteSewageManagement 3,000 10,000

Public&EnvironmentalHealth 167,485

NoxiousWeedsManagement 31,000 104,500

AnimalControl 7,900 58,000

TOTALP,B&H(NOTWASTE) 196,600 - - - 537,185 - - -

DomesticWaste/Recycling 322,266 139,925

CommercialWaste 63,928 18,000

Waste&RecyclingDepots 64,275 247,000

StreetCleaning 8,000

CleanupAustraliaDay 1,000

WasteAdmin&Superv.,Loans 20,373

TOTALWASTEMANAGEMENT 450,469 - - - 434,298 - - -

ProgramArea Target

100%

100%

Report

Report

achieved

Report

100%

Report

%within

timeframes

Report

%within

timeframes

Report

FloodplainManagement Report


Cemeteries Dir.Eng.S

WasteManagement Dir.Env.S

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

ImprovementsatLandfills 50,000

RepayLoanPrincipal(Waste) 32,713

ReviewLocalEnviron.Plan 25,000

FloodplainManagement 91,029 106,200

TOTALHEALTH&ENV. 91,029 0 0 0 213,913 0 0 0

ProjectArea Target

90%

10%

Report

CertificationandinspectionofbuildingworkstoverifycompliancewithBuildingCodes,etc.

Measure:reportonactivitiesofFMCommittee,developmentandimplementationofFMPlans

ReferenceDocuments

WasteImprovementPlans;NoxiousWeedsManagementPlan,RoadsideVegetationManagementPlan,CrownLandsEnvironmental

Masterplan,LocalEnvironmentalPlan,DevelopmentControlPlans,FloodplainManagementPlans


Allprojects



Measure:reportonachievementsandkeyprojects


TownPlanning

Target:achievementofrequiredtimeframes(underSEPP)fordetermining'localdevelopment'

DevelopmentApplications(40days)and'complyingdevelopment'(10and20days)

Measure:periodicreportonactivitiesandtrends

BuildingControlandother

Certification

ActionsidentifiedinWasteImprovementPlans

CemeteriesTarget:prepareandimplementCemeteryManagementPlan,complywithservicestandards


NoxiousWeeds

Management

Target:compliancewithdetailedschedulesinCouncil'sannualweedcontrolprogram

Measure:periodicreportonactivitiesandtrends,includingimplementationofactionsinNoxious

WeedsManagementPlan,collaborationwithregionalpartners

Target:achievementofrequiredtimeframesforconstructioncertificates(20days)othercertificates

(10days)andotherapprovals(20days)


CapitalPrograms

SelectionCriteria(forindividualprojectslistedinBuilding&RecreationAssetManagementPlans)

Improvementstoimproveaestheticsandextendfacilities(nichewall,lawncemetery)

DevelopmentandimplementationofFloodplainManagementPlans



WasteMgmt.Serviceand

Facility/LandfillOperations

Target:compliancewithregulatoryrequirements

Target:compliancewithservicespecificationsforwastecollectionandprocessing

Measure:implementationofactionsinWasteFacilityImprovementPlans

Measure:reportonwastemanagementfacilityusage,diversionrates(withcomparisonstoprevious

yearsandNSWGovernmentbenchmarks)

Preparationandreviewofstatutorylandusecontrols(LocalEnvironmentalPlan,Development

ControlPlans)andassessmentofdevelopmentapplicationsagainstthese

Planning,Building,HealthandEnvironmentInfrastructure

AssetCategory

3WasteManagementCentres

3Cemeteries

Pound

TOTALHEALTH&ENVIRONMENT

OperationalPrograms

Priorities

Collectionofdomesticandcommercialwaste,recyclablestoCowraforprocessing

MaintainGrenfellCemeteryandundertakeburialsatBimbiandCaragabal

ImplementWeedsManagementPlan(inspectionsofpublicandprivateproperty,issueof

complianceorders,undertakingsprayingonCouncil-controlledlandesp.roads&reserves)asper

OperatingGrenfell,CarabagalandQuandiallaLandfillsinaccordancewithenvironmentalregulations

ImplementOnsiteSewageManagementPlanandFoodSafetyPlan(undertakecompliance

inspections)

1

2

3


GapSatisfactio

nTrend

$2.0MMaintenance $0.4MRenew(1yronly) $0.5MDepreciation$10.5


3.2Theintegratedplanningandreportingprocessisfullyimplemented

3.3Villageprogresssocietiesactivitiesaresupported

3.4TheexistingleadershipnetworkisharnessedandactivelyleveragedacrosstheShire

3.5Allmajorgroupsinthecommunityandabroadsectionofcommunitymembershavetheopportunity

tocontributetomajordecisions

3.6ThecommunityhasagoodgraspoftheroleofCouncillorsandtheCouncil,andhowbesttoraise

issuesandconcerns

3.7Internetandsocialmediaiseffectivelyleveragedtoengagecommunityinlocalleadershipand

communicationincludingPanelengagement

3.8Internetaccessadvocacyinthevillagesandruralsectorisproactiveandcollaborativewith

communityexpectation

3.9Internalsystemsandefficienciesarereviewedandactionplansdeveloped

OrganisationalSupport

Provisionof'internal'orsupportservicesenabling'frontline'serviceprovision(finance,humanresources,

informationtechnology,propertymanagement,assetandfleetmanagement,administrationandgovernance);'First

contact'services(customerservicecentres,telephoneenquiriesandwebsite/onlineservices);Communicationsand

engagementactivities(media,communications,corporateplanningandreporting)

CommunityStrategic

PlanObjectives

3.DemocraticandEngagedCommunitySupportedbyEfficientInternalSystems

3.10Reviewservicelevelefficiencesandanactionplandeveloped

EmergingIssues

(Beyond10years)

Theincreasinglycomplexoperatingenvironment,compliancerequirementsandperformanceassessment

regimesmeansCouncilwillfinditmoreandmoredifficulttodelivereffectivesupportservices-itis

essentialthatCouncilestablishcollaborativearrangementswithitsneighbours(e.g.Mid-LachlanAlliance,

CENTROC);unlessCouncilcandoso,thereisasignificantriskofamalgamationatsomestageinthe

future

Councilhaslimitedcapacityto

undertakestrategicorganisational

planningandneedstoinvestmore

inHRandITtoimprove

performance(bothissues

addressedinpartviacollaboration

e.g.Mid-LachlanAlliance,

CENTROC);lackofdatafor

planning(+systemstogenerate

thisinformation);needtofoster

ownershipofcorporatesystems

(WHS,HR,finance,assets)

Moreworkneedstobedoneto

establishandverifyfuture

projections(e.g.financial

sustainability);Councilneedsto

investmoreinefficiency

improvementstoreducecosts

Enterpriseriskmanagement

frameworknotinplace;

complianceandgovernancerisks

duetolackofcapacitytodevelop

systemsandrespondtochanges;

improvementsrequiredin

WorkplaceHealthandSafety

systemsimplementation

Value10years


ValueNow


Increasingchallengesduetoalack

ofcapabilityandcapacity(key

focusofFitfortheFuture

program);increasedexpectations

ofcouncilswillbedifficulttomeet

(needcollaborativearrangements)

Councilwillcontinuetostruggleto

deliversupportservicesinhouse

(collaborativearrangementsneed

tobeestablished)

AuditorGeneralwillbe

undertakingperformanceaudits

ofcouncils(thereisaneedto

improvesystemstosupportsuch

processes)

MInfrastructure

ReplacementValue

CommunitySurvey

(2016)

Service

CouncilCustomerService

Investment(proportionoftotalCouncil.note:majorityofoperationsexpensesareinternalchargestootherservices-seepage2)

0 1




5.4 42% 0% 99% 99%

2.2 24% 0% 15% 15%

1.7 81% 0% 0% 0%

1.1 19% 0% 109% 109%

10.5 42% 0% 78% 78%


HumanResource

ManagementDirectors

WorkHealthandSafety Directors

FinancialServicesDirector

Corp.Serv.

InformationTechnology ITOfficer

Property(Buildingand

Facilities)Management

Director

Env.

Services

Vehicle&FleetMgmt.Director

Engineering

Administrationand

CustomerService

Director

Corp.Serv.

Governance DCS/GM

ExecutiveFunctions GM

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

Fees,Dividends,Rebates 146,500

CorporateServices 797,000

Office,Bank,Valuations 161,275

AuditsandLegals 93,600Org.Review&

Improvement155,000

Governance(Council,LGA) 195,950

Admin.BuildingOps&Maint. 63,836

OfficeEquipment/IT 89,000

Insurance(PL,PI,Workers) 171,000

WHSandTraining 95,000

PlantFleetOperations 1,157,020 835,000

EngineeringStaff&Office 450,000 551,953

WorksDepotsOperations 155,000

PrivateWorks 180,000 140,000

EmployeeLeave,Super 360,000 796,750

TOTALORG.SUPPORT

(incl.internalcharges)2,293,520 0 0 0 4,300,364 0 0 0

Lessinternalcharges -2,040,000 0 0 0 -2,040,000 0 0 0

TOTALORG.SUPPORT

(externalrev./exp.only) 253,520 0 0 0 2,260,364 0 0 0

ProgramArea Target

Report

Report

Report

Report

90%

Report

90%

Report

100%

6monthly

CustomerService&Admin. Report

95%

Report

Report

Report

100%


Vehicles&PlantFleet Dir.Eng.

AdministrationOffices Dir.Env.

WorksDepot Dir.Eng.

InformationTechnology Dir.Corp.

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

Admin.BuildingRepairs 50,000

Office/ITEquipment 90,000

PlantReplacement 335,000

InternalLoan(GrenfellTip) 32,731

TOTALORG.SUPPORT 475,000 0 0 0

ProjectArea Target

90%

10%

Report

OrganisationalSupportInfrastructureandEquipment

AssetCategory

PlantandEquipment

AdministrationCentre

WorksDepot

ITandOfficeEquipment

TOTALORGANISATIONALSUPPORT

FunctionsrelatingtoGMandcouncillors,civicdutiesandfunctions

OperationalPrograms

Priorities

CoordinatingimplementationoftheWorkforceManagementPlanincludingrecruitmentand

selection,traininganddevelopment,employeeperformance

ImplementationandimprovementofCouncil'sWHSmanagementsystem

Accountingactivitiesfornormalbusinessoperations(creditors,debtors,payroll),reportingfor

statutoryandmanagementpurposes,financialplanningandstrategy

Provisionoftoolstofacilitatebusinessoperationsincludingcomputerhardware/software,

networks,communications,GIS,website;implementITstrategy

Managementofbuildings/facilitiesportfoliosupportingservices(openspace,communityaswell

asadministration,worksdepots)includingmaintenanceandrenewalplanning,relationswith

users/lesseesinaccordancewithBuildingandFacilitiesLease/UsePolicy

MaintenanceandreplacementofCouncil'svehiclefleetandheavyplantfleet(fundedviainternal

chargestocoveroperationsandreplacement)

Supportofoperationsincludingfirstcontact,administration,recordsmanagement,mediaand

website;coordinateimplementationofCustomerServiceStrategy

FacilitateIntegratedPlanningandReportingprocess,servicereviews,riskmanagement

framework;managinginsuranceandriskmanagementmatters,supportexecutivefunctions



HumanResource

ManagementandSafety

Measure:reportonemployeemeasures(turnover,engagement,LTIFR,severityrate)

Measure:reportonimplementationofactionsfromWorkforceManagementPlan,WHSStrategy

FinancialServicesMeasure:compliancewithstatutoryandoperationalrequirements

Measure:reportoninvestments,creditors/debtors,otheractivitiese.g.rates,watermeters

InformationTechnologyTarget:compliancewithservicestandards

Measure:reportonimplementationofactionsfromITStrategy



Target:achieveservicestandardse.gresponsetomaintenancerequests

Measure:reportonutilisationandrevenues,maintenanceactivities,commercialreturns

AssetPlanningand

Reporting

Target:plansuptodate,complywithaccountingstandardsandregulatoryrequirements

Measure:mgmt.reviewofimplementation&improvementofAMsystembySteeringGroup

InaccordancewithobjectivesandstrategiesinITStrategy

Measure:activityreport,implementationofimprovements

FleetOperationsTarget:plantavailability(i.e.minimisingdowntimeduetorepairs)

Measure:reportonplantperformance,implementationofreplacementprogram

Governance

Measure:implementationofInternalAuditProgram,numberofactionsoutstanding

Measure:reportonfunctioningofRiskReviewCommittee,adviceonactionstobeaddressed

Target:compliancewithIntegratedPlanningandReportingrequirements

CapitalPrograms


Optimisingreplacementcosts/operationscosts,safetyandperformanceissues

Improvementstoefficiencyandeffectiveness(esp.customerservice),workhealth&safety

Addressingperformanceandsafetyissues,minimisinglongtermcostsofbuildings&facilities

ReferenceDocuments

Keydocuments(fulllistonwebsiteunder'policies'):WorkforceManagementPlan,WorkplaceHealthandSafetyPolicyandSystem,Business

ContinuityPolicy,EnterpriseRiskManagementCharter,ProcurementandDisposalPolicy,RecordsManagementPolicy,ITStrategy,Asset

ManagementPolicy,FinancialPolicies,LongTermFinancialPlan,QuarterlyBudgetReviews,Budgets,OperationalPlan,DeliveryProgram



Allprojects




PlantandEquipment


WorksDepot




5.4 42% 0% 99% 99%

2.2 24% 0% 15% 15%

1.7 81% 0% 0% 0%

1.1 19% 0% 109% 109%

10.5 42% 0% 78% 78%


HumanResource

ManagementDirectors

WorkHealthandSafety Directors

FinancialServicesDirector

Corp.Serv.

InformationTechnology ITOfficer



Director

Env.

Services

Vehicle&FleetMgmt.Director

Engineering

Administrationand

CustomerService

Director

Corp.Serv.

Governance DCS/GM

ExecutiveFunctions GM

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

Fees,Dividends,Rebates 146,500

CorporateServices 797,000

Office,Bank,Valuations 161,275

AuditsandLegals 93,600Org.Review&

Improvement155,000

Governance(Council,LGA) 195,950

Admin.BuildingOps&Maint. 63,836

OfficeEquipment/IT 89,000

Insurance(PL,PI,Workers) 171,000

WHSandTraining 95,000

PlantFleetOperations 1,157,020 835,000

EngineeringStaff&Office 450,000 551,953

WorksDepotsOperations 155,000

PrivateWorks 180,000 140,000

EmployeeLeave,Super 360,000 796,750

TOTALORG.SUPPORT

(incl.internalcharges)2,293,520 0 0 0 4,300,364 0 0 0

Lessinternalcharges -2,040,000 0 0 0 -2,040,000 0 0 0

TOTALORG.SUPPORT

(externalrev./exp.only) 253,520 0 0 0 2,260,364 0 0 0

ProgramArea Target

Report

Report

Report

Report

90%

Report

90%

Report

100%

6monthly

CustomerService&Admin. Report

95%

Report

Report

Report

100%


Vehicles&PlantFleet Dir.Eng.

AdministrationOffices Dir.Env.

WorksDepot Dir.Eng.

InformationTechnology Dir.Corp.

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22

Admin.BuildingRepairs 50,000

Office/ITEquipment 90,000

PlantReplacement 335,000

InternalLoan(GrenfellTip) 32,731

TOTALORG.SUPPORT 475,000 0 0 0

ProjectArea Target

90%

10%

Report

OrganisationalSupportInfrastructureandEquipment

AssetCategory

PlantandEquipment


WorksDepot


TOTALORGANISATIONALSUPPORT

FunctionsrelatingtoGMandcouncillors,civicdutiesandfunctions

OperationalPrograms

Priorities

CoordinatingimplementationoftheWorkforceManagementPlanincludingrecruitmentand

selection,traininganddevelopment,employeeperformance

ImplementationandimprovementofCouncil'sWHSmanagementsystem

Accountingactivitiesfornormalbusinessoperations(creditors,debtors,payroll),reportingfor

statutoryandmanagementpurposes,financialplanningandstrategy

Provisionoftoolstofacilitatebusinessoperationsincludingcomputerhardware/software,

networks,communications,GIS,website;implementITstrategy

Managementofbuildings/facilitiesportfoliosupportingservices(openspace,communityaswell

asadministration,worksdepots)includingmaintenanceandrenewalplanning,relationswith

users/lesseesinaccordancewithBuildingandFacilitiesLease/UsePolicy

MaintenanceandreplacementofCouncil'svehiclefleetandheavyplantfleet(fundedviainternal

chargestocoveroperationsandreplacement)

Supportofoperationsincludingfirstcontact,administration,recordsmanagement,mediaand

website;coordinateimplementationofCustomerServiceStrategy

FacilitateIntegratedPlanningandReportingprocess,servicereviews,riskmanagement

framework;managinginsuranceandriskmanagementmatters,supportexecutivefunctions



HumanResource

ManagementandSafety

Measure:reportonemployeemeasures(turnover,engagement,LTIFR,severityrate)

Measure:reportonimplementationofactionsfromWorkforceManagementPlan,WHSStrategy

FinancialServicesMeasure:compliancewithstatutoryandoperationalrequirements

Measure:reportoninvestments,creditors/debtors,otheractivitiese.g.rates,watermeters

InformationTechnologyTarget:compliancewithservicestandards

Measure:reportonimplementationofactionsfromITStrategy



Target:achieveservicestandardse.gresponsetomaintenancerequests

Measure:reportonutilisationandrevenues,maintenanceactivities,commercialreturns

AssetPlanningand

Reporting

Target:plansuptodate,complywithaccountingstandardsandregulatoryrequirements

Measure:mgmt.reviewofimplementation&improvementofAMsystembySteeringGroup

InaccordancewithobjectivesandstrategiesinITStrategy

Measure:activityreport,implementationofimprovements

FleetOperationsTarget:plantavailability(i.e.minimisingdowntimeduetorepairs)

Measure:reportonplantperformance,implementationofreplacementprogram

Governance

Measure:implementationofInternalAuditProgram,numberofactionsoutstanding

Measure:reportonfunctioningofRiskReviewCommittee,adviceonactionstobeaddressed

Target:compliancewithIntegratedPlanningandReportingrequirements

CapitalPrograms


Optimisingreplacementcosts/operationscosts,safetyandperformanceissues

Improvementstoefficiencyandeffectiveness(esp.customerservice),workhealth&safety

Addressingperformanceandsafetyissues,minimisinglongtermcostsofbuildings&facilities

ReferenceDocuments

Keydocuments(fulllistonwebsiteunder'policies'):WorkforceManagementPlan,WorkplaceHealthandSafetyPolicyandSystem,Business

ContinuityPolicy,EnterpriseRiskManagementCharter,ProcurementandDisposalPolicy,RecordsManagementPolicy,ITStrategy,Asset

ManagementPolicy,FinancialPolicies,LongTermFinancialPlan,QuarterlyBudgetReviews,Budgets,OperationalPlan,DeliveryProgram



Allprojects




PlantandEquipment


WorksDepot



Appendix 2 – Council Improvement Plan

Following is a list of actions, responsibilities and timeframes relevant to the sustainability objectives identified in Council’s Sustainable Best Value Policy. Where an action achieves several objectives, this will be noted.

Note that this plan is also intended to discharge Council’s obligations to report to NSW Government on progress with commitments made under the Fit for the Future program. Progress with actions will be reported to Council on a quarterly basis, along with the Operational Plan generally.

No. Action Outcome When Who Status


1 Make decisions about resource allocation in the Delivery Program (Service Dashboards) considering competing priorities (best value) and what is affordable and sustainable, in particular aiming to maintain an operating surplus

1.1 Finalise Service Dashboards for Council’s Delivery Program and new format Resourcing Strategy

‘Big picture’ is clear, robust improvement plan in place

May 2018 ELT and OMT

In progress

1.2 Update community survey (importance and satisfaction with services, etc.) – last survey 2016

Up to date feedback on Council services

2018 Consultant Programmed

1.3 Review Council’s General Ledger, revise management reporting against the new structure (aligned with Dashboards)

Improved budgeting, reporting and cost control

March 2019

DCS and consultant

Programmed


2.1 Apply for Special Rate Variation to fund Grenfell Aquatic Centre, Medical Centre and improve financial sustainability

30% increase over 4 years, $0.3M generated p.a.

2015 GM & DCS Complete

2.2 Undertake service reviews including revenue considerations (refer action 12.1)

2.3 Undertake a review of rating in the Shire (as part of MLA Fitness Campaign)

Review equity / distribution of rates, not overall increase

March 2019

Consultant In progress

2.4 Consider the need for further Special Rate Variations based on delivering services and infrastructure agreed with the community

Council is financially sustainable

Ongoing GM, DCS and Council

Ongoing

3 Reduce expenditure while maintaining service levels

3.1 Undertake service reviews to identify efficiencies (refer action 12.1)

3.2 Identify opportunities to improve efficiencies for functional areas as part of Organisational Review (refer action 12.3)



3.3 Establish leave plans for employees with excessive leave and periodic reporting to monitor leave balances

Leave liability reduced Ongoing ELT and OMT Ongoing

3.4 Finalise strategy to reduce councillor numbers (from 9 to 7) and to hold meetings bi-monthly (not monthly)

$25,000 savings p.a. (direct) + additional admin. savings

June 2019 Council To be commenced

4 Maintain compliance with Best Practice Management Guidelines for water and sewerage functions and revise financial plans annually, taking into account any changes to works in asset management plans (e.g. estimates for major projects)

4.1 Review Strategic Business Plan, Asset Management Plan and Financial Plan for Sewerage Business in light of Grenfell Sewage Treatment Plant being grant funded (explore potential to ramp up funding for mains relining, rehabilitating manholes and investigate sewer to villages)

Optimise level of investment, minimise long term cost and current level of charges

February 2019

Consultant In progress

4.2 Liaise with Central Tablelands Water (and potentially Cowra Shire Council) about the preparation of an Integrated Water Cycle Management Strategy

Best Practice compliance, identify future needs

December 2018

Dir. Env. Serv. In progress

4.3 Develop Trade Waste Policy, establish agreements (best practice management requirement)

Reduce impacts on Sewage Treatment Plant, costs to other service users

February 2020

Dir. Env. Serv., consultant

To be commenced (possible MLA project)

5 Use borrowings when appropriate (e.g. to finance peaks in infrastructure investment and to ensure each generation pays for the services they utilise)

5.1 Borrow to fund Council portion of Grenfell Aquatic Centre Intergenerational equity regarding new asset

2017 DCS Complete

5.2 Consider the need to borrow to fund infrastructure needs as part of asset management and financial planning

Intergenerational equity: renewal / upgrade of long-lived asset

Ongoing GM, DCS and Council

Ongoing

5.3 Review need for borrowing for sewerage infrastructure as part of 30 year financial model (action 4.1) e.g. accelerate pipe relining

Optimise investments and minimise long term cost



6 Implement treasury management strategies to minimise borrowing costs and interest rate risk exposure while maintaining sufficient cash to finance expenses

6.1 Develop Treasury Management Policy and Procedures (possible MLA project)

Minimise borrowing costs, interest rate exposure, maintain cash reserves

December 2018

DCS/MLA In progress


7 Keep the asset register up to date; revalue assets as per accounting standards (and OLG Code); seek to improve alignment between asset valuation/service life assumptions and renewal plans; ensure condition data is meaningful and useful

7.1 Capture asset renewals, disposals and additions from capital works program; review assumptions (valuation/service life) in this context and any other available information (inspections, floods, etc.)

Asset register is up to date: Council’s assets, value and service life

Annually Director Engineering Services

Ongoing

7.2 Implement works order system to capture capital works (details of assets created/disposed, costs) – after GL restructure (action 1.3)

Better cost control, improved asset data

June 2019 DCS, Dir. Eng. Services

To be commenced following GL

7.3 Revalue property, plant and equipment (next due 2023) Up to date and accurate valuation and depreciation estimates (summaries to be included in AMP)

June 2018 Consultant Complete

7.4 Revalue transport assets June 2020 Consultant Not started

7.5 Revalue community land, other structures, all other assets June 2021 TBC Not started

7.6 Revalue sewerage assets June 2022 TBC Not started

7.7 Add utilities to Council’s mapping layer, undertake CCTV inspections of mains and inspection of manholes to identify and prioritise sections for renewal / relining

Better management of sewerage assets, plans for other work

June 2020 Director Engineering Services

Not started

8 Collaborate with other councils in asset revaluation and condition rating to realise economies of scale, improve consistency and confidence in the figures as well as create opportunities for regional strategic planning and advocacy

8.1 Develop consistent approach to condition assessment of roads across the MLA and explore opportunities to utilise in a regional strategy advocating for more roads funding

Economies of scale, consistency, increased confidence in figures, ability to satisfy infrastructure audits. Council better positioned to claim assistance from Natural Disaster Recovery Assistance grants.

In time for next revaluation (2020)

TBC Discussions being held with MLA councils



9 Review Asset Management Plans annually to optimise activities to be undertaken within available resources in each maintenance and capital works program to achieve performance targets in Service Dashboards as well as highlighting issues of concern that may warrant allocation of additional resources to particular programs

9.1 Review budgeting for roads to clearly distinguish: operations and maintenance from capital works; sealed from unsealed roads; potential grants from what is ‘locked in’ to budgets (align this with Dashboards and Asset Management Plans)

Better budgeting and analysis of future needs, better cost control and performance reporting

September 2018

DCS, Dir. Eng. Services

To be commenced

9.2 Implementation of a maintenance management systems for roads and footpaths (implement Council policies on roads and footpaths)

Better risk management (road users and public liability risk to Council)

December 2018

Director Engineering Services

In progress

9.3 Seek consistency in maintenance systems / standards across MLA Economies of scale, resource sharing, benchmarking, satisfy infrastructure audits

TBC GM/Dir. Eng. Services

Discussions being held by MLA

9.4 Annual review of risks associated with maintenance and renewal activities to inform ‘required maintenance’ and ‘bring to satisfactory’ reporting in Special Schedule 7; other risks (e.g. need for upgraded / new assets) also identified; AMP updated if required.

Assess suitability of targets and sufficiency of budgets; focus on higher risk issues

Annually in August


Ongoing

9.5 Annual review of capital works programs including priority projects, budgets, funding to achieve performance targets for renewal, priorities for upgraded/new assets, longer term outlook (include in up-to-date Asset Management Plan)

Priority projects identified, longer term outlook and trends understood

Annually in February

Directors: Eng. (transport, recreation); Env. (buildings)

Ongoing

9.6 Review resealing programs so they are driven by condition (regional roads can potentially reduce but local roads may need an increase) to maximise service life but also avoid premature failure of pavements. Identify reseal projects in AMP.

Sustainable program for resealing, road pavements last longer

September 2018


In progress



9.7 Prepare a renewal and upgrade strategy for regional roads identifying the sections that Council will focus on (for widening, etc.) over the next 10 years.

More efficient transport network, optimise use of available funds.

February 2019


To commence

9.8 Explore the opportunity to develop a consistent prioritisation method for rural road upgrades with neighbouring councils to support grant applications via a ‘Regional Transport Strategy’ or similar document

Strengthen grant applications

February 2019

GM, Director Engineering Services

To commence

9.9 Prepare a sustainable program for gravel re-sheeting of unsealed roads that draws on current levels of service, increases thickness of resheets (100mm not 50mm) and prioritises work in future based on road hierarchy and criticality of the route

Sustainable program for gravel re-sheeting

September 2018


In progress (discussions among MLA – potential joint program)

9.10 Prepare a map showing current gaps and proposed priorities to construct new kerb and gutter in Grenfell

Prioritised program based on needs

December 2018

Director Eng. Services

In progress

9.12 Review capital program for footpaths and cycleways including renewal of footpaths in poor condition, disability access and upgrades in Active Transport Plan (identify on a map)

Prioritised program based on risk as well as upgrade needs

December 2018


In progress

9.13 Collect data on rural pipe culverts and prepare a prioritised program for maintenance (clearing) and renewal

Focus on improved drainage, fix problems

After MMS implemented (action 9.1)


To commence

9.14 Review asset hierarchy (align Roads Policy and Asset Register) Clear prioritisation of funding for roads

February 2019

Director Eng. Services

To be commenced

9.15 Consider implementing a computerised maintenance management system for recreation areas once the system is in place for roads.

Better management of maintenance of recreation

After MMS implemented (action 9.1)


To be commenced

9.16 Identify opportunities to reduce asset holdings (especially buildings near the end of their life with little use) and reinvest (especially in asset renewal). Buildings AMP to include a list of properties (including land) for consideration.

Council’s building asset portfolio represents best value for the community

December 2018

Director Environmental Services, DCS

In progress

9.17 Consider opportunities to accelerate sewerage pipe relining activities to reduce incidents of chokes / blockages (links with action 4.1)

Optimising investment and minimising long term cost of sewerage

February 2019


In progress



9.18 Annual maintenance inspection of buildings as well as fire safety equipment (hoses, signs, etc.). Inspection to identify asbestos.

Proactive maintenance, reduced risks

February 2019

Director Env. Services

To be commenced


10 Work co-operatively with other councils to improve organisational capability and capacity (e.g. Mid-Lachlan Alliance, Central West JO, Hawkesbury City Council City-Country Alliance)

10.1 Participate in MLA Fitness Program to facilitate learning and collaboration (initial program established with funding assistance from NSW Government)

Ensure Council delivers best value and stays sustainable

Ongoing GM, ELT and OLT

Program is progressing well

11 Review the main priorities for improvement via an annual Organisational Capability and Capacity Survey to be completed by Council’s leadership team and support this with internal/external audits against similar elements of good practice as appropriate

11.1 Council’s leadership team (ELT and OLT) to complete an Organisational Capability and Capacity Survey and hold a workshop to discuss the key areas for improvement

Shared view of priorities for improvement, direction for improvement programs

February each year

GM, ELT and OLT

Completed for 2017

11.2 Consider undertaking internal or external audits against elements of good practice similar to those in the Org. C&C Survey

External assurance, concerns identified

As required Internal or ext. auditor

For consideration

11.3 Undertake an Organisational Review that considers Council’s functional areas and how it achieves its strategic objectives as well as opportunities to build capacity via alternative service delivery methods. Include an analysis of what to ‘stop, start and keep’ doing to free up capacity for critical issues

Establish way forward for sustainable best value service provision, ensure Council continues to stand alone (no argument for amalgamation)

February 2019

Consultant To be progressed

12 Review all services annually by keeping the Service Review Summary up to date; develop and implement an annual program of detailed service reviews that takes into account the audit program developed by the Internal Audit function

12.1 Update the Service Review Summary all service areas (including current situation and opportunities for improvement)

Management reviews priorities, clear picture where to focus efforts

Annually in March

All Managers (OMT)

Ongoing

12.2 Develop and implement an annual program of detailed service reviews (report to Council on proposed services and outcomes of reviews as part of the Operational Plan)

Improve efficiency and effectiveness of Council operations

Report in Operational Plan

ELT Ongoing



12.3 Participate in MLA Customer Enquiry Resolution Project (as per Project Initiation Document)

Improve website, more efficient enquiry resolution, free up professional staff

In progress GM and DCS In progress

12.4 Pursue opportunities to collaborate across the MLA regarding Information and Communications Technology starting with alignment of ICT Strategic Plans

Economies of scale, efficiency & effectiveness

In progress GM and DCS In progress

12.5 Procurement Review: determine way forward with implementation of recommendations from Arc Blue report

LTFP: efficiency savings $10k p.a. each yr for 7 yrs

December 2018

ELT To be progressed

12.6 Plant and Fleet Review to identify efficiencies with ownership, utilisation and type of plant

LTFP: $60k saving forecast in 2020

??? Consultant, D. Eng. Serv.

To be progressed

13 Ensure the internal audit function operates effectively and is supported by an appropriate Enterprise Risk Management Plan

13.1 Develop an enterprise risk management plan Key corporate risks and methods to treat them are identified

June 2018 GM, ELT and OLT

Plan completed (to be reviewed by Internal Audit C’tee and Council)

13.2 Engage an independent Internal Auditor to develop and undertake an internal plan from enterprise risk mgmt. plan

Improved governance, mitigate corporate risks

June 2017 GM and ELT Completed

14 Implement and review the Program and Project Management Framework to drive the continuous improvement program within Council

14.1 Implement and review Program and Project Management Framework, ensure Program Management Officer appointed

Report to Council: activities of Program Management Office

Structure in place to drive continuous improvement program

Report in Operational Plan

ELT Ongoing

15 Undertake programs to equip leaders individually and as a group to realise meaningful change; take action to manage performance issues as required

15.1 ‘Connected Leadership Program’ completed as part of MLA Fitness Campaign

Leadership group within Council strengthened, personal development plans prepared

November 2017 and February 2018

ELT and OMT Program completed

15.2 Develop Employee Performance Management System Improved performance, better engagement

??? Consultant, DCS

To be progressed


Appendix 3 – Long Term Financial Plan

Council’s full Long Term Financial Plan is under separate cover. This includes details about assumptions, sensitivity analysis and scenarios as well as methods of monitoring performance. The table below presents the details behind the projected operating performance for Council’s General Fund in section 3.1.

BASECASE

BUDGET

2014/15 2015/16 2016/17 2017/18 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028

Rates&AnnualCharges 2,338 2,484 2,656 3,072 3,164 3,259 3,357 3,458 3,561 3,668 3,778 3,892 4,008

UserCharges&Fees 2,578 1,962 3,815 2,252 2,320 2,389 2,461 2,535 2,611 2,689 2,770 2,853 2,938

Interest&InvestmentRevenue 208 190 195 140 193 174 179 191 200 202 211 219 220

OtherRevenues 144 102 187 292 301 310 319 329 339 349 359 370 381

Grants&Contributions-Operating 4,110 4,659 7,981 4,454 4,588 4,725 4,867 5,013 5,163 5,318 5,478 5,642 5,811

Grants&Contributions-Capital 115 834 1,187 915 57 59 60 62 64 66 68 70 72

NetGainsfromtheDisposalOfAssets 30 - 75 5 - - - - - - - - -

NetShareofinterestsinCentralTablelandsWater 227 177 - - - - - - - - - - -

TotalIncomefromContinuingOperations 9,750 10,408 16,096 10,516 11,130 10,622 10,916 11,244 11,587 11,938 12,292 12,664 13,045 13,431

EmployeeCosts 3,651 3,434 3,905 3,946 4,064 4,186 4,312 4,441 4,574 4,712 4,853 4,999 5,149

InterestonLoans 13 11 101 160 194 192 188 185 181 177 173 169 174

Materials&Contracts 2,472 1,593 4,475 2,732 2,814 2,898 2,985 3,075 3,167 3,262 3,360 3,461 3,565

Depreciation 3,462 2,516 2,527 2,511 2,586 2,664 2,744 2,826 2,911 2,998 3,088 3,181 3,276

Impairment - - - - - - - - - - - - -

OtherExpenses 805 805 903 805 829 854 880 906 933 961 990 1,020 1,050

InterestandInvestmentsLosses - - - - - - - - - - - - -

LossesonDisposalofAssets - 377 - - - - - - - - - - -

TotalExpensesfromContinuingOperations 10,403 8,736 11,911 10,211 10,154 10,488 10,795 11,109 11,433 11,767 12,110 12,464 12,829 13,214

OperatingResultfromcontinuingoperations-Gain/(Loss) (653) 1,672 4,185 305 976 134 122 135 154 171 182 199 216 217

OperatingResultfromcontinuingoperationsbeforeCapital

Grants/ContribGain/(Loss) (768) 838 2,998 305 61 77 63 74 92 107 116 131 146 145

3yearaverageoperatingresult 1,023 1,380 1,121 148 67 72 76 91 105 118 131 141

ACHIEVABLEFFTFIMPROVEMENTSCENARIO

Assumptions:reducecouncillornos(-$25k2021),plantefficiencies(-$60k2020),procurement(-$10kover7yearsfrom2020)

BUDGET

2014/15 2015/16 2016/17 2017/18 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028

Rates&AnnualCharges 2,338 2,484 2,656 3,072 3,164 3,259 3,357 3,458 3,561 3,668 3,778 3,892 4,008

UserCharges&Fees 2,578 1,962 3,815 2,252 2,320 2,389 2,461 2,535 2,611 2,689 2,770 2,853 2,938

Interest&InvestmentRevenue 208 190 195 140 193 174 179 191 200 202 211 219 220

OtherRevenues 144 102 187 292 301 310 319 329 339 349 359 370 381

Grants&Contributions-Operating 4,110 4,659 7,981 4,454 4,588 4,725 4,867 5,013 5,163 5,318 5,478 5,642 5,811

Grants&Contributions-Capital 115 834 1,187 1,424 57 59 60 62 64 66 68 70 72

NetGainsfromtheDisposalOfAssets 30 - 75 5 - - - - - - - - -

NetShareofinterestsinCentralTablelandsWater 227 177 - - - - - - - - - - -

TotalIncomefromContinuingOperations 9,750 10,408 16,096 10,516 11,639 10,622 10,916 11,244 11,587 11,938 12,292 12,664 13,045 13,431

EmployeeCosts 3,651 3,434 3,905 3,946 4,064 4,186 4,312 4,441 4,574 4,712 4,853 4,999 5,149

InterestonLoans 13 11 101 160 194 192 188 185 181 177 173 169 174

Materials&Contracts 2,472 1,593 4,475 2,732 2,744 2,816 2,891 2,967 3,047 3,128 3,212 3,308 3,407

Depreciation 3,462 2,516 2,527 2,511 2,586 2,664 2,744 2,826 2,911 2,998 3,088 3,181 3,276

Impairment - - - - - - - - - - - - -

OtherExpenses 805 805 903 805 829 829 854 880 906 933 961 990 1,020

InterestandInvestmentsLosses - - - - - - - - - - - - -

LossesonDisposalofAssets - 377 - - - - - - - - - - -

TotalExpensesfromContinuingOperations 10,403 8,736 11,911 10,211 10,154 10,418 10,688 10,988 11,299 11,619 11,948 12,287 12,647 13,026

OperatingResultfromcontinuingoperations-Gain/(Loss) (653) 1,672 4,185 305 1,485 204 229 255 288 319 344 376 399 405

OperatingResultfromcontinuingoperationsbeforeCapital

Grants/ContribGain/(Loss) (768) 838 2,998 305 61 147 170 195 226 255 278 308 329 333

3yearaverageoperatingresult 1,023 1,380 1,121 171 126 171 197 225 253 281 305 323

DescriptionActuals DeliveryProgram(Budgeted) LongTermFinancialPlan(Forecast)

DescriptionActuals DeliveryProgram(Budgeted) LongTermFinancialPlan(Forecast)


Appendix 4 – Asset Management Plans

Asset Management Plans (AMPs) are under separate cover. These are generally grouped as per the main asset classes but with a few exceptions to simplify the presentation and updating of these documents as well as clarify responsibilities within Council for their updating:

The Transport AMP includes urban stormwater (which is included in the Sewerage and Stormwater Dashboard) as the program is very small (not warranting a separate AMP), the maintenance management system used for roads also applies to stormwater, stormwater is (like roads) part of general fund (distinct from sewerage), capital projects for roads (in urban streets) sometimes include drainage work and also culverts on rural roads are already included in the Transport AMP.

The Open Space and Recreation AMP includes most of the ‘other structures’ assets as well as buildings relevant to that function to facilitate prioritisation of projects based on all assets supporting that function (rather than distinguishing buildings and other structures, etc.).

The Buildings AMP includes programs for most of Council’s buildings apart from those buildings which are supporting functions in another AMP (including recreational buildings and buildings used for sewerage activities).

The Sewerage AMP includes all assets funded by the sewerage fund.

The AMPs provide the details for each of the program areas identified in Service Dashboards including both operations (maintenance) and capital works (renewal, upgraded and/or new assets).

The goal in developing and revising these AMPs, then, is optimising activities within each program (so as to best achieve Council’s performance objectives) and allocation of resources between programs (so Council delivers sustainable best value across all activities). As such, commentary about the adequacy of budgets in each program area and longer term trends are a vital part of the AMP, intended to help Council make more informed decisions.

Future revisions of this Resourcing Strategy will include a table here summarising:

programs within each asset class (i.e. each AMP)

totals for each asset class

These will be related to the capital expenditure forecast in the LTFP. At present, Council does not have the level of detail required to produce this information for all asset classes, but will do as the improvement actions developed in the AMPs are worked through.


Appendix 5 – Organisational Capability Survey

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OrganisationalCapabilitySurveyRatingschemeandspaceforcommentsareprovidedonthefinalpage

Element CapabilitythatCouncilrequirestodeliversustainablebestvalueRating*

1 2 3 4

1.0Community

1.1Weunderstandtheneedsandaspirationsofourlocalcommunitynowandintothefuture;thisisdescribedclearlyinourCommunityStrategicPlan

1.2Weengageeffectivelywithourlocalcommunity;ourrelationshipsarehealthyandproductive

1.3Ourplansandreportsarewritteninawaythatmakesustransparentandaccountabletoourlocalcommunity

1.4Wemeasurethevaluewedelivertoourlocalcommunityandusethisfeedbacktoimprovewhatwedo

2.0Leadership

andCulture

2.1OurleadersareclearabouthowCouncilwilldeliversustainablebestvaluetoourlocalcommunity,theyhelppeopleto

understandtheirroleinachievingthisandthebehaviourthatisexpectedofthem

2.2OurleadersatalllevelsholdregularcommunicationsmeetingstoensurepeopleareinformedaboutCouncil’sactivities

2.3Ourleadersactivelythinkaboutandcommunicatefutureopportunitiesandrisks,theychallengethestatusquo

2.4Ourleadersacknowledgegoodperformanceandbehaviourandaddresspoorperformanceandbehaviour

2.5Ourleadersmodelgoodbehaviourandareopentoconstructivecriticism

2.6Ourpeoplehaveregularopportunitiestocontributetheirideasandexperienceandtoprovideleadershipintheirareasofresponsibilityandintheirworkteams

2.7Ourpeopleexploreandembracenewwaysofworkingwithafocusondeliveringbettervaluetothecommunity

3.0Strategy

andPlanning

3.1WehavearobustplanningprocessproducingintegrateddocumentsenablingCounciltodeliversustainablebestvaluetoourlocalcommunitybymakingresponsibledecisions,undertakingtherightactivitiesanddevelopingourcapabilities

3.2Wehaveidentified,assessed,treated,documentedandcommunicatedourkeyrisksandkeepthisunderreview

3.3OurDeliveryProgram,OperationalPlanandotheroperationaldocumentsidentifySMART(Specific,Measurable,Achievable,RealisticandTime-bound)objectives

3.4Processesareclearanddocumented(what/who/when/how)whenrequired;themethodandcriteriafordecisionmakingandprioritisingactivitiesandresourcestoachieveCouncil’sobjectivesisclearanddocumented

3.5Weidentifyandpursueopportunitiestocollaborateandpartnerinordertopursueagreed,documented,sharedgoals


©CommonThreadConsultingPtyLtd www.commonthreadconsulting.com.au

Element CapabilitythatCouncilrequirestodeliversustainablebestvalueRating*

1 2 3 4

4.0Workforce,Technology

andInformation

4.1Ourpeopleunderstandtheirroleindeliveringsustainablebestvaluetothecommunity,thereareclearlinksbetweenCouncil’sobjectivesandemployeeperformanceobjectives

4.2Ourpeopleareawareofrisksassociatedwiththeirwork,controlsinplaceandconsequencesofnon-compliance

4.3Ourpeoplehavetheskillsandexperiencenecessarytoperformthedutiesrequiredofthem

4.4Linesofreportingandlevelsofsupervisionareappropriate(includingorganisationalstructure)

4.5Wehavetheresources,technologyandequipmentourpeopleneedtoworkefficientlyandeffectively

4.6Wehaveidentifiedtheinformationourpeopleneedtodeliversustainablebestvaluetoourcommunity;wecollectit,controlitandmakeitavailableinatimelyandaccessiblemanner;wekeepadequaterecords

5.0ControlandMonitoring

ofOperations

5.1Weeffectivelycontrolandmonitorourprocessestoprovideconfidencethatwewillachieveourobjectives,manage

risksastheyarise,takecorrectiveactionasrequiredandcontinuallyimprove

5.2Wecontrolandmonitoroutsourcedactivities,effectivelyintegratingthemintoCouncil’sorganisation

5.3WeassesstheImpactsofchangestoouractivitiesbeforehand,wemanagetheassociateriskswell

5.4Weundertakeinternalauditstoverifywearedoingwhatweplannedtodoandidentifyimprovements

6.0PerformanceReviewandImprovement

6.1Wehavearobustemployeeperformanceappraisalsysteminplace,itiswelcomedbymanagersasatool

6.2Weareclearaboutourperformancegapsandhaveprogramsinplacetoaddressthese

6.3Ourtopmanagementreviewsourperformanceregularly,overseesourcontinualimprovementprogramincludingissuesidentifiedviaperformancereporting,internalauditsorourpeopleandinresponsetorisksandopportunities

*Pleaserateeachelementas:1=aspirational(wewanttobeabletodothiswell),2=emerging(we’redeveloping,butneedmorecapability),3=consolidating(wedothiswell,butwearelookingtoimprove),and4=excellent(wedothisreallywellandareopentosharingwithothers)

Comments(includeitemnumber):


Appendix 6 – Workforce Management Strategy

Under separate cover.