Ordinary Meeting of the Council Agenda · Council Meetings during the COVID-19 Pandemic . In order...

Ordinary Meeting of the Council

Agenda Date: Wednesday 20 May 2020 Time: 6pm Venue: Civic Centre (Council Meeting Room) 13 Mair Street, Benalla

Council Meetings during the COVID-19 Pandemic In order to allow Council Meetings to be open to the public during the COVID-19 Pandemic, the ability of Councils in Victoria to hold meetings via electronic means is authorised under Part 5.3 of the COVID-19 Omnibus (Emergency Measures) Act 2020.

The Council meeting can be viewed electronically via the Council’s website at www.benalla.vic.gov.au Members of the public are encouraged not to attend the meeting in person. People wishing to submit questions to Public Question Time or make submissions to a Special Committee or in accordance with Section 223 of the Local Government Act 1989 should contact the Council’s Governance Coordinator.

The meeting will be broadcast in line with the Council’s Virtual Meetings Procedure which can be obtained from the Council’s website.

In accordance with the Governance Local Law 2016 clause 4.6.4 an audio recording will be made of the proceedings of Council / Special Committee meetings.

PO Box 227, 1 Bridge Street East Benalla Victoria 3672

Tel: 03 5760 2600 Fax: 03 5762 5537 [email protected]

mailto:[email protected]

Agenda – Ordinary Meeting of the Council 20 May 2020

BENALLA RURAL CITY COUNCIL 2

Contents

1. Opening and Acknowledgement of Country ................................................. 4

2. Statement of Commitment .............................................................................. 4

3. Disclosures of Conflict of Interest ................................................................. 6

4. Apologies ......................................................................................................... 6

5. Confirmation of the Minutes of the Previous Meeting .................................. 6

6. Public Question Time ...................................................................................... 7

7. Petitions ............................................................................................................ 7

8. Record of Committees ..................................................................................... 7

8.1 Finance and Operations Committee ............................................................ 7 8.2 Planning and Development Committee ....................................................... 8 8.3 Assemblies of Councillors, advisory and external committees .................... 8

9. Reports by Officers ......................................................................................... 9

9.1 Authorisation of Signing and Sealing of Documents .................................... 9 9.1.1 Delegation from the Council to the Chief Executive Officer .............. 9

9.2 Submission of the Proposed 2020/21 Budget and Draft 2020 Strategic Resource Plan ........................................................................................... 12

9.3 Financial Report - quarter ended 31 March 2020 ...................................... 18 9.4 Capital Projects Status - quarter ended 31 March 2020 ............................ 28 9.5 2019/20 Community Support Program ...................................................... 33 9.6 2019/20 Community Sponsorship Program ............................................... 41 9.7 Benalla Airport Lease - Submissions ......................................................... 44 9.8 Council Facilities - Community Group Rent Relief ..................................... 46 9.9 Building and Planning Approvals – March 2020 ........................................ 48 9.10 Arts, Tourism, Communications and Events Department Activity Report -

quarter ended 31 March 2020 ................................................................... 56 9.11 Community Department Activity Report - quarter ended 31 March 2020 .. 60 9.12 Business Development Activity Report - quarter ended 31 March 2020 .... 68 9.13 Finance Department Activity Report - quarter ended 31 March 2020 ........ 72 9.14 People and Performance Department Activity Report - quarter ended 31

March 2020 ............................................................................................... 77 9.15 Development Department Activity Report - quarter ended 31 March 2020

.................................................................................................................. 83 9.16 Operations Department Activity Report - quarter ended 31 March 2020 ... 88



9.17 Facilities Department Activity Report - quarter ended 31 March 2020 ....... 92 9.18 Environment and Sustainability Activity Report - quarter ended 31 March

2020 .......................................................................................................... 96 9.19 Councillors’ Expenses - quarter ended 31 March 2020 ............................. 99 9.20 Chief Executive Officer Credit Card ......................................................... 100 9.21 Council Actions Pending .......................................................................... 101

10. Mayor and Councillors’ attendance at committees and civic functions . 102

11. Reports by Councillors ............................................................................... 104

12. Notices of Motion ......................................................................................... 104

13. Notices of Rescission Motion ..................................................................... 104

14. Urgent Business .......................................................................................... 104

15. Confidential Business ................................................................................. 105

15.1 Tenders for Contract CM19.022 Management of the Benalla Aquatic Centre 2020 to 2030 ............................................................................ 106

15.2 Chief Executive Officer Performance Review ...................................... 110

15.3 Confidential Reports by Councillors ..................................................... 112

15.4 Confidential Council Actions Pending .................................................. 112

16. Reopening of meeting to the public ........................................................... 113

17. Closure of the meeting ................................................................................ 113



Agenda Chair Councillor Danny Claridge (Mayor) Councillors Councillor Barbara Alexander Councillor Peter Davis Councillor Don Firth Councillor Bernie Hearn Councillor Scott Upston Councillor Willie van Wersch In attendance Dom Testoni Chief Executive Officer Robert Barber General Manager Corporate Jane Archbold Manager Community Greg Robertson Manager Facilities Cathy Fitzpatrick Manager Finance Tom Arnold Community Development Coordinator

1. Opening and Acknowledgement of Country

The Chair will open the meeting and recite the following Acknowledgement of Country.

We acknowledge the traditional custodians of this land and pay respect to their elders and the elders from other communities who may be here today.

We also acknowledge all other people who have contributed to the rich diversity of this Country.

2. Statement of Commitment

The Councillors will recite the following Statement of Commitment:

I declare that as a Councillor of Benalla Rural City I will undertake on every occasion to carry out my duties in the best interests of the community and that my conduct shall maintain the standards of our Councillor Code of Conduct so that I may faithfully represent and uphold the trust placed in the Council by the people of Benalla and District.



Governance Matters

Recording of Council Meetings

This Council Meeting is conducted in accordance with the Local Government Act 1989 and the Benalla Rural City Governance Local Law 2016.

All Council and Special Committee meetings will be audio recorded and made available for public access, with the exception of matters identified as confidential items in the agenda. This includes the public participation sections of the meetings.

These recordings are taken to facilitate:

a) the preparation and accuracy of the minutes of open Council meetings b) broader access to open Council meetings, and c) the accuracy of submitter details (where relevant). d) By participating in open Council meetings, individuals consent to the use and

disclosure of the information that they share at the meeting (including any personal/sensitive information) for the purposes of Council carrying out its functions. Individuals also consent to the disclosure of that information to any person(s) who access those recordings.

Individuals may request, prior to presenting to Council, they be identified only by their first name. Any statements made or questions asked will still be captured on the recording.

Any queries about these recordings can be directed to the Council by calling 03 5760 2600.

Behaviour at meetings

Members of the public present at a meeting must remain silent during the proceedings other than when specifically invited to address the Committee.

The Chair may order and cause the removal of any person, not being a Councillor, who disrupts any meeting or fails to comply with a direction. A person removed from a Meeting must leave the premises or move to a public area of the premises where they can no longer disrupt the meeting.

If the Chair is of the opinion that disorder in the gallery makes it desirable to adjourn the meeting, the Chair may adjourn the meeting to a later time on the same day or to some later day as the Chair thinks proper.



3. Disclosures of Conflict of Interest

Pursuant to Sections 77, 78 and 79 of the Local Government Act 1989, direct and indirect conflict of interest must be disclosed prior to debate on specific items within the agenda; or in writing to the Chief Executive Officer before the meeting. Those sections of the 1989 Act remain in force until repealed on 24 October 2020 by the Local Government Act 2020.

Disclosure of indirect interests must also include the classification of the interest (in circumstances where a Councillor has made a disclosure in writing, the classification of the interest must still be declared at the meeting):

a) direct financial interest b) indirect interest by close association c) indirect interest that is an indirect financial interest d) indirect interest because of conflicting duties e) indirect interest because of receipt of an applicable gift f) indirect interest as a consequence of becoming an interested party g) indirect interest as a result of impact on residential amenity h) conflicting personal interest.

4. Apologies

Recommendation: That the apology/ies be accepted and a leave of absence granted.

5. Confirmation of the Minutes of the Previous Meeting

The minutes have been circulated to Councillors and posted on the Council website www.benalla.vic.gov.au pending confirmation at this meeting.

Recommendation: That the Minutes of the Ordinary Meeting of the Council held on Wednesday 15 April 2020 be confirmed as a true and accurate record of the meeting.



6. Public Question Time

Council’s Governance Local Law 2016 provides the opportunity for members of the public to lodge written questions of broad interest to the Council and the community. Matters relating to routine Council works should be taken up with Council’s Customer Service Officers through the Customer Request Management System.

Public question time will not exceed 10 minutes in duration unless the Council resolves otherwise.

No person may submit more than two questions at any one Meeting. A question may be disallowed by the Chair if the Chair determines that it:

relates to a matter outside the duties, functions and powers of Council; is defamatory, indecent, abusive, offensive, irrelevant, trivial or

objectionable in language or substance; may lead to a breach of the Council’s obligation to comply with

information privacy principles or any Act; is aimed at embarrassing a member of the Council or Council staff;

deals with a subject matter already answered; or is a matter that may be deemed to be confidential in accordance with

the Local Government Act 1989. All questions and answers must be as brief as possible, and no discussion may

be allowed other than by Councillors for the purposes of clarification. Like questions may be grouped together and a single answer provided. The Chair may nominate a Councillor, the Chief Executive Officer or another

member of Council staff to respond to a question.

7. Petitions

8. Record of Committees

8.1 Finance and Operations Committee

Due to the COVID-19 pandemic, the Finance and Operations Committee Meeting scheduled for Wednesday 1 April was cancelled. There is no report to present.



8.2 Planning and Development Committee

Due to the COVID-19 pandemic, the Planning and Development Committee Meeting scheduled for Wednesday 8 April was cancelled. There is no report to present.

8.3 Assemblies of Councillors, advisory and external committees

The Victorian Local Government Act 1989 requires that the Chief Executive Officer keep a written record of Assemblies of Councillors. The record of Assemblies since is attached as Appendix 1. Section 80(A)(2) of the 1989 Act remains in force until repealed on 24 October 2020 by the Local Government Act 2020.

Recommendation: That the reports be noted.

Record of Assemblies of Councillors 20 May 2020

1

Section S. 80A(2) of the Local Government Act 1989 requires that the Chief Executive Officer provides a written record of an assembly of Councillors as soon as practicable at an ordinary meeting of the Council. Section 80A(2) will remain in force until it is repealed by the Local Government Act 2020 on 24 October 2020.

Communications Advisory Committee 4pm Wednesday 1 April 2020 via videoconference

Chair Cr Danny Claridge Committee Cr Barbara Alexander AO

Cr Don Firth

Dom Testoni Chief Executive Officer

Jilian Mulally Manager Arts, Communications, Tourism and Events

Apologies Nil Item discussed Conflicts of interest disclosed

1. April 2020 Council News Nil

2. Anti-violence sign on Benalla Library Nil

Assembly of Councillors – Budget Workshop 6pm Wednesday 8 April 2020, Civic Centre (Council Meeting Room)

Chair Mayor Cr Danny Claridge Councillors Councillor Barbara Alexander

Councillor Peter Davis

Councillor Don Firth

Councillor Bernie Hearn

Councillor Willie van Wersch

Councillor Scott Upston

In attendance Dom Testoni Chief Executive Officer Robert Barber General Manager Corporate

Cathy Fitzpatrick Manager Finance

Apologies Nil Item discussed Conflicts of interest disclosed

1. 2020/21 Budget – Financial Statements Nil

8.1 APPENDIX 1

Record of Assemblies of Councillors – 20 May 2020 2

MEMPC - Pandemic Subcommittee 10am Wednesday 15 April 2020, Benalla Health, Michael Long Education Centre and teleconference

Chair Cr Scott Upston Committee Ambulance Victoria Jane Campbell Benalla Business Network Lindsay Thomas Benalla Health Heather Betts Benalla Rural City Council Robert Barber Benalla Rural City Council Callum Morrison Benalla Rural City Council Josh Kirby Carrier Street Clinic Sarah Hancock Church Street Surgery Janine Rofe Community Representative Lee Manning Cooinda Benalla Aged Care Alex McKenna Department of Health & Human

Services Darren Debble

Royal Freemasons David Gullick Victoria Police Mark Byers In attendance Tracey Beaton Benalla Rural City Council Apologies Catherine Macmillan Benalla Rural City Council Joanna O’Kane Coster Street Medial Clinic Item discussed Conflicts of interest disclosed

1. Business arising – publicity Nil

2. Pandemic Subcommittee Terms of Reference Nil

3. Report from Agencies – DHHS, Ambulance Victoria, Cooinda, Benalla Health, Benalla Business Network, Benalla Rural City Council, Carrier Street Clinic, Church Street Surgery, Community representative, Freemasons, Victoria Police,

Nil

4. Case numbers. Nil



Chair Cr Scott Upston Committee Ambulance Victoria Paul Reynolds Benalla Business Network Lindsay Thomas Benalla Health Heather Betts Benalla Rural City Council Robert Barber Benalla Rural City Council Callum Morrison Benalla Rural City Council Josh Kirby Benalla Rural City Council Catherine MacMillan Carrier Street Clinic Sarah Hancock Church Street Surgery Janine Rofe Community Representative Lee Manning Coster Street Medical Practice Joanna O’Kane Department of Health & Human

Services Sally McCarron

Estia Health Leanne McMaster Victoria Police Mark Byers In attendance Tracey Beaton Benalla Rural City Council Item discussed Conflicts of interest disclosed



3. Report from Agencies – DHHS, Ambulance Victoria, Cooinda, Benalla Health, Benalla Business Network, Benalla Rural City Council, Carrier Street Clinic, Church Street Surgery, Community representative, Freemasons, Victoria Police,

Nil



Chair Cr Scott Upston Committee Ambulance Victoria Jane Campbell Benalla Business Network Lindsay Thomas Benalla Rural City Council Robert Barber Benalla Rural City Council Callum Morrison Benalla Rural City Council Josh Kirby Church Street Surgery Janine Rofe Community Representative Lee Manning Cooinda Alex McKenna Coster Street Medical Practice Joanna O’Kane Department of Health & Human

Services Sally McCarron

Estia Health Leanne McMaster Victoria Police Mark Byers In attendance Tracey Beaton Benalla Rural City Council Item discussed Conflicts of interest disclosed



3. Report from Agencies – DHHS, Ambulance Victoria, Cooinda, Benalla Health, Benalla Business Network, Benalla Rural City Council, Carrier Street Clinic, Church Street Surgery, Community representative, Estia Health, Victoria Police,

Nil


Assembly of Councillors – Budget Workshop 6pm Wednesday 6 May 2020, Civic Centre (Council Meeting Room)

Chair Mayor Cr Danny Claridge Councillors Councillor Barbara Alexander Councillor Peter Davis Councillor Don Firth Councillor Bernie Hearn Councillor Willie van Wersch Councillor Scott Upston In attendance Dom Testoni Chief Executive Officer Robert Barber General Manager Corporate Cathy Fitzpatrick Manager Finance Apologies Nil Item discussed Conflicts of interest disclosed

1. Proposed 2020/21 Budget Nil

2. 2019/20 Community Support Program and Major Events Funding

Nil

3. Insurance of Community Buildings Nil

4. Drought Communities Funding Nil

5. Local Government Investigations and Compliance Inspectorate

Nil



9. Reports by Officers

9.1 Authorisation of Signing and Sealing of Documents

9.1.1 Delegation from the Council to the Chief Executive Officer SF/808-04

Jane Still – Governance Coordinator Robert Barber – General Manager Corporate

PURPOSE OF REPORT

The report reviews the delegations to the Chief Executive Officer and presents the S5 Instrument of delegation to the Chief Executive Officer for signing and sealing.

The Instrument is attached as Appendix 1.

BACKGROUND

The Local Government Act 2020 was proclaimed in April 2020 and came into force on 1 May 2020.

Section 11(1)(b) of the Local Government Act 2020 provides that a Council may by instrument of delegation delegate to the Chief Executive Officer any power, duty or function of a Council under this Act or any other Act other than a power, duty or function specified in subsection (2).

Under subsection (2), the Council may not delegate:

a. the power of delegation b. the power to elect a Mayor or Deputy Mayor c. the power to grant a reasonable request for leave under section 35 d. subject to subsection (3), the power to appoint the Chief Executive Officer,

whether on a permanent or acting basis e. the power to make any decision in relation to the employment, dismissal or

removal of the Chief Executive Officer f. the power to approve or amend the Council Plan; g. the power to adopt or amend any policy that the Council is required to adopt

under this Act h. the power to adopt or amend the Governance Rules i. the power to appoint the chair or the members to a delegated committee j. the power to make, amend or revoke a local law k. the power to approve the budget or revised budget l. the power to borrow money



m. subject to section 181H(1)(b) of the Local Government Act 1989, the power to declare general rates, municipal charges, service rates and charges and special rates and charges

n. any power, duty or function prescribed by the regulations for the purposes of this subsection.

Subsection 3 provides for the Chief Executive officer to appoint an Acting Chief Executive Officer for a period not exceeding 28 days.

DISCUSSION

The Council subscribes to the Maddocks delegations service which provides updates which are required to delegations and authorisations in order to reflect changes to legislation and regulations.

The Council remade the S5 Instrument of Delegation from the Council to the Chief Executive Officer in April 2020, in line with its usual practice of biannual review of delegations and authorisations.

Since that time, Maddocks have advised of the need for an update due to the enactment of Local Government Act 2020.

The updated S5 Instrument has been drafted to take into account the matters that cannot be delegated by the CEO pursuant to section 11(2) of the 2020 Act. These matters are listed as Conditions and Limitations in the Schedule to the S5 Instrument, including the condition under section 11(5) that any delegation to enter into a contract must include a financial limit.

The Council may include additional matters if it so wishes. For example, a Council may not wish to delegate the power to adopt the Community Vision, Financial Plan, Asset Plan or Revenue and Rating Plan.

COUNCIL PLAN 2017-2021 (2019 REVIEW) IMPLICATIONS

High Performing Organisation

We are compliant with our legislative and risk management responsibilities. Provide good governance and responsible management and planning. Ensure Council is open, transparent, inclusive and accountable to the community

through sound governance practices for making and implementing decisions.



FINANCIAL IMPLICATIONS

An allocation is made each year in the governance program budget for the Council subscription to Maddocks Lawyers Delegations and Authorisations Service. In 2019/20 the cost was $2,750.

In the exercise of the power conferred by s 11(1)(b) of the Local Government Act 2020 (the Act), Benalla Rural City Council (Council) resolves that:

1. There be delegated to the person holding the position, or acting in or performing the duties, of Chief Executive Officer the powers, duties and functions set out in the attached Instrument of Delegation to the Chief Executive Officer, subject to the conditions and limitations specified in that Instrument.

2. The instrument comes into force immediately the common seal of Council is affixed to the instrument.

3. On the coming into force of the instrument all previous delegations to the Chief Executive Officer are revoked.

4. The duties and functions set out in the instrument must be performed, and the powers set out in the instruments must be executed, in accordance with any guidelines or policies of Council that it may from time to time adopt.

Instrument of Delegation to the

Chief Executive Officer

20 May 2020

9.1.1 APPENDIX

COPY

Benalla Rural City Council

S5. Instrument of Delegation to Chief Executive Officer 20 May 2020 Page 2 of 6

COPY



Instrument of Delegation to The Chief Executive Officer

In exercise of the power conferred by s 11(1) of the Local Government Act 2020 (the Act) and all other powers enabling it, Benalla Rural City Council (Council) delegates to the member of Council staff holding, acting in or performing the position of Chief Executive Officer, the powers, duties and functions set out in the Schedule to this Instrument of Delegation, AND declares that 1. this Instrument of Delegation is authorised by a Resolution of Council passed on 20 May 2020;

2. the delegation

2.1. comes into force immediately the common seal of Council is affixed to this Instrument of Delegation;

2.2. is subject to any conditions and limitations set out in the Schedule;

2.3. must be exercised in accordance with any guidelines or policies which Council from time to time adopts; and

2.4. remains in force until Council resolves to vary or revoke it.

The common seal of Benalla Rural City Council ) ) ) Was hereto affixed this twentieth day of May 2020. Mayor (Signature) …………………………………………………… NAME Councillor Danny Claridge Chief Executive Officer (Signature) …………………………………………………… NAME Mr Dominic Testoni

COPY



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COPY



SCHEDULE The power to

1. determine any issue;

2. take any action; or

3. do any act or thing

arising out of or connected with any duty imposed, or function or power conferred on Council by or under any Act.

Conditions and Limitations

The delegate must not determine the issue, take the action or do the act or thing

3. if the issue, action, act or thing is an issue, action, act or thing which involves

3.1 awarding a contract or making an expenditure exceeding the value of $200,000;

3.2 appointing an Acting Chief Executive Officer for a period exceeding 28 days;

3.3 election of a Mayor or Deputy Mayor;

3.4 granting of a reasonable request for leave under section 35 of the Act;

3.5 making any decision in relation to the employment, dismissal or removal of the Chief Executive Officer;

3.6 approval or amendment of the Council Plan;

3.7 adoption or amendment of any policy that Council is required to adopt under the Act;

3.8 adoption or amendment of the Governance Rules;

3.9 appointment of the chair or the members to a delegated committee;

3.10 making, amending or revoking a local law;

3.11 approval of the Budget or Revised Budget;

3.12 borrowing money;

3.13 subject to section 181H(1)(b) of the Local Government Act 1989, declaring general rates, municipal charges, service rates and charges and specified rates and charges; or

4. if the issue, action, act or thing is an issue, action, act or thing which is required by law to be done by Council resolution;

5. if the issue, action, act or thing is an issue, action or thing which Council has previously designated as an issue, action, act or thing which must be the subject of a Resolution of Council;

COPY



6. if the determining of the issue, taking of the action or doing of the act or thing would or would be likely to involve a decision which is inconsistent with a

6.1 policy; or

6.2 strategy

adopted by Council; or

7. if the determining of the issue, the taking of the action or the doing of the act or thing cannot be the subject of a lawful delegation, whether on account of s 11(2)(a)-(n) (inclusive) of the Act or otherwise; or

8. the determining of the issue, the taking of the action or the doing of the act or thing is already the subject of an exclusive delegation to another member of Council staff.

COPY



9.2 Submission of the Proposed 2020/21 Budget and Draft 2020 Strategic Resource Plan

SF/2479-05 Cathy Fitzpatrick – Manager Finance

Robert Barber – General Manager Corporate

PURPOSE OF REPORT

The report presents the Proposed 2020/21 Budget and Draft 2020 Strategic Resource Plan.

PROPOSED 2020/21 BUDGET

The Local Government Act 1989 requires the Council to prepare a budget for each financial year. The Council must ensure the budget contains:

financial statements in the form and containing the information required by the regulations

a description of the services and initiatives to be funded in the budget a statement as to how the services and initiatives described under paragraph (b)

will contribute to achieving the strategic objectives specified in the Council Plan major initiatives, being initiatives identified by the Council as priorities, to be

undertaken during the financial year for services to be funded in the budget, the prescribed indicators of service

performance that are required to be reported against in the performance statement under section 131 of the Act

the prescribed measures relating to those indicators any other information required by the regulations.

The Budget reflects the first year of the Strategic Resource Plan. It describes the services, initiatives and major initiatives to be funded, including service performance outcome indicators to help monitor performance.

The Budget must contain financial statements and other information, including capital works, human resources, grants and rating information.

The Proposed 2020/21 Budget is based on the Victorian City Council Model Budget developed by Chartered Accountants Australia and New Zealand.



DISCUSSION

Key Financial Issues

Rate Capping The Victorian Government’s rate capping system establishes limits by which Victorian councils can increase rates in a year without seeking an exemption from the Minister for Local Government.

The Minister has set the maximum percentage increase in average rates for the 2020/21 financial year at 2 per cent. It is not proposed that the Council apply for a higher rate exemption.

Rate revenue No significant further increases in rate revenue are forecast to occur over the next two years. The rate base for rating figure 2020/21 includes revised assessments for the concrete batching plant and the Freemasons aged care facility.

Potential income from operating solar farms does not impact on the rate revenue as it will be recognised as revenue in lieu of rates in the future.

This is the second year of Victorian wide annual revaluation system, however, this will not impact on the Council’s total rate revenue available. The Council’s Rating Strategy is to capture any increased CIV due to development as additional rate revenue rather than using it to reduce the rates paid by existing ratepayers.

There are no contributions in lieu of rates from the Benalla Munitions facility. Previous contributions: 2019/20: $201,345, 2018/19: $290,832, 2017/18: $380,319 and 2016/17: $447,434.

Grant funding Federal and State government grants are expected to continue in real terms. Budgeted grants will only include confirmed funding.

User charges It is proposed that existing fees and charges be increased by an average of 2 percent. Waste Service charges to increase by 6.5 per cent, which is less than forecast 9 per cent increase in the 2019 Strategic Resource Plan

Borrowings Net borrowings are to slightly decrease over the life of the Council Plan 2017-2021.

The Proposed Budget includes 2020/21 borrowings of $1 million. This leaves capacity in future years to review borrowing for specific projects.

Assets There will continue to be a focus on infrastructure maintenance and replacement over the final year of the Council Plan.



Service levels Changes to service levels requiring additional resources will need to be funded externally or from internal efficiencies.

The Community Services proposed budget will be based on no immediate change to existing services pending the outcome of the Aged and Disability Service Review currently being undertaken.

Employee costs Employee costs are forecast to increase by 2.5 per cent, in line with the Enterprise Agreement, banding progressions, end of band payments and national and industry trends.

Other costs Forecast CPI is based on increase by 2 percent.

Premiums for insurance will be updated in April based on industry advice on the impact of recent flood and storm damage events becomes clear. Initial forecasts indicate a 20 percent increase on 2019/20 actual costs.

Operating result The 2020/21 operating result is forecast to be a deficit of $690,000 against a deficit of $789,000 forecast in 2019/20 Strategic Resource Plan.

Deficit results reduce funds available for Council funded capital projects in future years.

Cash and investments The Council’s liquidity (current assets/current liabilities) continues to be a challenge underlying cash position will progressively decrease over the 2020/21 to 2021/22 financial years.

Budget additions Following discussions with councillors, additional expenditure detailed below has been included: $30,000 to develop a Gutter Replacement Strategy $20,000 to develop a Playground and Open Space Strategy.

Capital Works The proposed budget forecasts capital works of $6.945 million, comprising $4.916 million in new works and $2.029 million of works carried forward from 2019/20. Expenditure type: New asset expenditure: $2.910 million Asset renewal expenditure $3.435 million Asset upgrade expenditure $0.600 million



Funded by: Council cash $4.305 million Grants $1.590 million Borrowings $1.000 million Contributions $0.050 million A comparison between the Proposed 2020/21 Budget and the 2019 Strategic Resource Plan’s 2020/21 projections can be found in the table below:

Proposed 2020/21 Budget $’000

2019 Strategic Resource Plan

Projections $’000

Difference $’000

Income Rates and Charges 18,905 19,063 -158 User Charges – Statutory Fees & Fines

439 384 55

User Charges 4,248 4,085 163 Grants – Operating 6,620 6,813 -193 Grants - Capital 1,590 780 810 Contributions 143 150 -7 Net gain/(loss) on disposal of assets

25 25 0

Other Income 164 187 -23 Total Income 32,135 31,487 648 Expenses Employee costs 12,576 12,244 -332 Materials and Services 12,016 12,305 289 Bad and Doubtful Debts 15 18 3 Borrowing/Finance Costs 145 137 -8 Other Expenses 377 572 195 Depreciation 7,027 7,000 -27 Amortisation – intangible assets 358 - -358 Amortisation – right of use assets 311 - -311 Total Expenses 32,825 32,276 -549 Grand Total -690 -789 99

The Proposed 2020/21 Budget is has been distributed under separate cover and is available for download from the Council’s website.



DRAFT 2020 STRATEGIC RESOURCE PLAN

Council is required by the Local Government Act 1989 (the Act) to prepare a Strategic Resource Plan (SRP) covering both financial and non-financial resources for at least the next four financial years to support the Council Plan.

The SRP takes the strategic objectives and initiatives as specified in the Council Plan and expresses them in financial terms for the next four years (2020/21-2023/24).

The key objective, which underlines the development of the SRP, is financial sustainability in the medium to long term, while still achieving the Council’s strategic objectives as specified in the Council Plan.

The key financial objectives, which underpin the Strategic Resource Plan, are:

continuous improvement of service delivery within available resources effectively manage the Council’s risk where possible, increase capital projects funding to manage the Council’s

renewal gap improve financial liquidity.

In preparing the SRP, the Council has also been mindful of the need to comply with the following principles of sound financial management as contained in the Act:

prudently manage financial risks relating to debt, assets and liabilities provide reasonable stability in the level of rate burden consider the financial impacts of Council decisions on future generations provide full, accurate and timely disclosure of financial information. The SRP is prepared and revised annually based on the latest economic and financial at the time of preparing the plan. As economic and financial variables change over time, the plan is adjusted accordingly to take into accounts these movements.

The SRP comprises a four-year financial estimate that comprises the Comprehensive Income Statement, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flow, Statement of Capital Works and Statement of Human

The Draft 2020 Strategic Resource Plan is attached as Appendix 1. CONCLUSION

The Proposed 2020/21 Budget and 2020 Strategic Resource Plan have been based on sound financial principles, prudent debt management and responsible asset management in what are difficult financial times for rural councils.



Increased external assistance from other levels of government will be required to ensure the long-term financial sustainability of Benalla Rural City and similar sized councils across Victoria.

Recommendation: 1. That public notice be given that the Council has prepared its Proposed

2020/21 Budget and 2020 Strategic Resource Plan. 2. That the Proposed 2020/21 Budget and 2020 Strategic Resource Plan be

placed on public exhibition for a period of at least 28 days. 3. That submissions relating to the Proposed 2020/21 Budget and 2020

Strategic Resource Plan be heard at a Special Meeting of the Finance and Operations Committee on 8 July 2020.

4. That the Council consider submissions on the Proposed 2020/21 Budget and 2020 Strategic Resource Plan at a Special Meeting of Council on Wednesday 22 July 2020.

5. That the Council consider adoption of the 2020/21 Budget and 2020 Strategic Resource Plan at the Ordinary Meeting of Council on Wednesday 29 July 2020.

Strategic resource

plan2020

Draft

Strategic Resource Plan

Council is required by the Local Government Act 1989

(the Act) to prepare a Strategic Resource Plan (SRP)

covering both financial and non-financial resources

for at least the next four financial years to support the

Council Plan.

The SRP takes the strategic objectives and initiatives

as specified in the Council Plan and expresses them in

financial terms for the next four years.

The key objective, which underlines the development

of the SRP, is financial sustainability in the medium

to long term, whilst still achieving Council’s strategic

objectives as specified in the Council Plan.

The key financial objectives, which underpin the

Strategic Resource Plan, are:

– continuous improvement of service delivery within

available resources

– effectively manage Council’s risk

– where possible, increase capital projects funding

to manage Council’s renewal gap

– improve financial liquidity.

In preparing the SRP, Council has also been mindful

of the need to comply with the following principles of

sound financial management as contained in the Act:

– prudently manage financial risks relating to debt,

assets and liabilities

– provide reasonable stability in the level of rate

burden

– consider the financial impacts of Council decisions

on future generations

– provide full, accurate and timely disclosure of

financial information.

The SRP is prepared and revised annually based on the

latest economic and financial at the time of preparing

the plan. As economic and financial variables change

over time, the plan is adjusted accordingly to take

into accounts these movements.

The SRP comprises a four-year financial estimate that

comprises the Comprehensive Income Statement,

Balance Sheet, Statement of Changes in Equity,

Statement of Cash Flow, Statement of Capital Works

and Statement of Human Resources.

Forecast Budget Strategic Resource Plan Projections

2019/20 2020/21 2021/22 2022/23 2023/24

Operating surplus/(deficit) ($1,525,000) ($690) ($1,567,000) ($1,600,000) ($1,985,000)Capital grants $3.556m $1.590m $990,000 $1,004,000 $1,020,000Capital works $5.906m $6.945m $3.986m $4.709m $2.722mNew loans - $1.000m - $1.000mIndebtedness ratio 49% 48% 44% 44% 43%

-

Draft

BRCC Strategic Resource Plan 2020 2


Comprehensive Income Statement For the four years ending 30 June 2024

Forecast Actual

2019/20 $’000

Budget 2020/21

$’000

Strategic Resource Plan Projections

2021/22 $’000

2022/23 $’000

2023/24 $’000 Notes

Income Rates and charges 4.1.1 18,681 18,905 19,376 19,873 20,386 Statutory fees and fines 4.1.2 591 439 439 439 439 User fees 4.1.3 4,281 4,248 4,333 4,420 4,508 Grants - Operating 4.1.4 4,740 6,620 6,717 6,815 6,914 Grants - Capital 4.1.4 3,556 1,590 990 1,004 1,020 Contributions - monetary 4.1.5 405 143 143 143 143 Contributions - non-monetary 4.1.5 350 - - - - Net gain/(loss) on disposal of property, infrastructure, plant and equipment 7 25 25 25 25

Fair value adjustments for investment property - - - - -

Other income 4.1.6 177 164 177 177 177

Total income 32,787 32,135 32,199 32,896 33,612

Expenses Employee costs 4.1.7 11,978 12,576 12,890 13,213 13,543 Materials and services 4.1.8 13,594 12,016 12,336 12,622 12,907 Depreciation 4.1.9 7,024 7,027 7,309 7,586 8,026 Amortisation - intangible assets 4.1.10 494 358 500 550 600 Amortisation - right of use assets 4.1.11 296 311 172 30 3 Bad and doubtful debts 15 15 13 14 13 Borrowing costs 170 108 120 89 106 Finance costs - leases 29 37 43 2 - Other expenses 4.1.12 339 377 383 390 399

Total expenses 33,939 32,825 33,766 34,496 35,597

(Deficit) for the year (1,152) (690) (1,567) (1,600) (1,985)

Other comprehensive income

Items that will not be reclassified to surplus or deficit in future periods

- - - - -

Total comprehensive result (1,152) (690) (1,567) (1,600) (1,985)

Draft


Balance Sheet For the four years ending 30 June 2024

Forecast Actual

2019/20 $’000

Budget 2020/21

$’000


2021/22 $’000

2022/23 $’000

2023/24 $’000 Notes

Assets Current assets Cash and cash equivalents 4,953 5,392 6,729 8,604 11,956 Trade and other receivables 2,961 2,591 2,572 2,633 2,667 Other financial assets 5,245 5,245 5,245 5,245 5,245 Inventories 33 33 33 33 33 Non-current assets classified as held for sale - - - - -

Other assets 97 97 97 97 97 Total current assets 4.2.1 13,289 13,358 14,676 16,612 19,998

Non-current assets Property, infrastructure, plant and equipment 257,344 256,958 253,163 249,824 243,917

Right-of-use assets 4.2.4 845 472 165 13 - Intangible assets 1,074 1,020 967 913 859 Total non-current assets 4.2.1 259,263 258,450 254,295 250,750 244,776 Total assets 272,552 271,808 268,971 267,362 264,774

Liabilities Current liabilities Trade and other payables 2,023 2,241 2,278 2,282 2,349 Trust funds and deposits 734 734 734 734 734 Provisions 2,691 2,691 2,691 2,691 2,691 Interest-bearing liabilities 4.2.3 869 1,000 895 657 463 Lease liabilities 4.2.4 387 306 152 13 - Total current liabilities 4.2.2 6,704 6,972 6,750 6,377 6,237

Non-current liabilities Provisions 8,478 8,478 8,478 8,478 8,478 Interest-bearing liabilities 4.2.3 3,036 3,037 2,142 2,519 2,056 Lease liabilities 4.2.4 473 166 13 - - Total non-current liabilities 4.2.2 11,987 11,681 10,633 10,997 10,534 Total liabilities 18,691 18,653 17,383 17,374 16,771

Net assets 253,862 253,155 251,588 249,989 248,003

Equity Accumulated surplus 139,372 138,580 136,943 135,274 133,218 Reserves 114,490 114,575 114,645 114,715 114,785 Total equity 253,862 253,155 251,588 249,989 248,003

Draft


Statement of Changes in Equity For the four years ending 30 June 2024

Notes Total $’000

Accumulated Surplus

$’000

Revaluation Reserve

$’000

Other Reserves

$’000

2020 Forecast Actual Balance at beginning of the financial year 255,012 140,577 113,870 565 Impact of adoption of new accounting standards (15) (15) - - Adjusted opening balance 254,997 140,562 113,870 565 Surplus/(deficit) for the year (1,152) (1,152) - - Net asset revaluation increment/(decrement) - - -- - Transfers to other reserves 70 - - 70 Transfers from other reserves (70) (70) - - Balance at end of the financial year 253,845 139,340 113,870 635

2021 Budget Balance at beginning of the financial year 253,845 139,340 113,870 635 Surplus/(deficit) for the year (690) (690) - - Net asset revaluation increment/(decrement) - - - - Transfers to other reserves 70 - - 70 Transfers from other reserves (70) (70) - - Balance at end of the financial year 253,155 138,580 113,870 705

2022 Balance at beginning of the financial year 253,155 138,580 113,870 705 Surplus/(deficit) for the year (1,567) (1,567) - - Net asset revaluation increment/(decrement) - - - Transfers to other reserves 70 - - 70 Transfers from other reserves (70) (70) - - Balance at end of the financial year 251,588 136,943 113,870 775

2023 Balance at beginning of the financial year 251,588 136,943 113,870 775 Surplus/(deficit) for the year (1,600) (1,600) - - Net asset revaluation increment/(decrement) - - - - Transfers to other reserves 70 - - 70 Transfers from other reserves (70) (70) - - Balance at end of the financial year 249,989 135,274 113,870 845

2024 Balance at beginning of the financial year 249,989 135,274 113,870 845 Surplus/(deficit) for the year (1,985) (1,985) - - Net asset revaluation increment/(decrement) - - - - Transfers to other reserves 70 - - 70 Transfers from other reserves (70) (70) - - Balance at end of the financial year 248,003 133,218 113,870 915

Draft


Statement of Cash Flows For the four years ending 30 June 2024

Forecast Actual

2019/20 $’000

Budget 2020/21

$’000


2021/22 $’000

2022/23 $’000

2023/24 $’000 Notes

Inflows Inflows Inflows Inflows Inflows (Outflows) (Outflows) (Outflows) (Outflows) (Outflows)

Cash flows from operating activities Rates and charges 18,231 19,453 19,656 20,130 20,653 Statutory fees and fines 587 452 446 445 445 User fees 4,250 4,376 4,398 4,479 4,569 Grants - operating 4,705 6,820 6,817 6,905 7,007 Grants - capital 3,530 1,638 1,004 1,018 1,033 Contributions - monetary 405 143 143 143 143 Interest received 128 140 140 140 140 Dividends received - - - - - Trust funds and deposits taken - - - - - Other receipts 359 70 65 69 67 Net GST refund / payment 1,300 1,354 1,213 1,263 1,095 Employee costs (12,160) (13,109) (13,517) (13,851) (14,196) Materials and services (15,106) (12,541) (12,944) (13,269) (13,471) Trust funds and deposits repaid - - - - - Other payments (324) (407) (417) (426) (435) Net cash provided by/ (used in) operating activities 4.4.1 5,905 8,390 7,003 7,046 7,050

Cash flows from investing activities Payments for property, infrastructure, plant and equipment (5,906) (7,640) (4,385) (5,180) (2,994) Proceeds from sale of property, infrastructure, plant and equipment 6 28 28 28 28

Payments for investments - - - - - Proceeds from sale of investments - - - - - Loan and advances made - - - - - Payments of loans and advances - - - - - Net cash provided by/(used in) investing activities 4.4.2 (5,900) (7,612) (4,357) (5,152) (2,966)

Cash flows from financing activities Finance costs (171) (108) (120) (89) (106) Proceeds from borrowings - 1,000 - 1,000 - Repayment of borrowings (880) (883) (1,000) (895) (623)Interest paid - lease liability (29) (37) (17) (4) -Repayment of lease liabilities (296) (311) (172) (30) (3)Net cash provided by/(used in) financing activities 4.4.3 (1,376) (339) (1,309) (18) (732)Net increase/(decrease) in cash and cash equivalents (1,371) 439 1,337 1,875 3,352 Cash and cash equivalents at the beginning of the financial year 6,324 4,953 5,392 6,729 8,604

Cash and cash equivalents at the end of the financial year 4,953 5,392 6,729 8,604 11,956

Draft


Statement of Capital Works For the four years ending 30 June 2024

Notes

Forecast Actual

2019/20 $’000

Budget 2020/21

$’000


2021/22 $’000

2022/23 $’000

2023/24 $’000

Property Land - - - - - Land improvements - - - - - Total land - - - - - Buildings 332 600 75 246 - Heritage buildings - - - - - Building improvements - 511 15 100 - Leasehold improvements - - - - - Total buildings 332 1,111 90 346 - Total property 332 1,111 90 346 -

Plant and equipment Heritage plant and equipment Plant, machinery and equipment 49 450 371 330 30 Fixtures, fittings and furniture 7 42 36 30 30 Computers and telecommunications 309 230 200 360 200 Library books 90 96 96 96 96 Total plant and equipment 455 818 703 816 356 Infrastructure Roads 3,545 1,300 1,261 1,127 1,177 Bridges - - - 333 274 Footpaths and cycleways 91 164 128 126 94 Drainage 25 25 25 67 - Recreational, leisure and community facilities 880 - - - -

Waste management 401 3,407 1,739 1,834 821 Parks, open space and streetscapes 50 - - - - Aerodromes 101 - 40 60 - Off street car parks 14 120 - - - Other infrastructure 12 - - - - Total infrastructure 5,119 5,016 3,193 3,547 2,366

Total capital works expenditure 4.5.1 5,906 6,945 3,986 4,709 2,722 Represented by: New asset expenditure 1,631 2,910 - 102 - Asset renewal expenditure 3,770 3,435 3,946 4,547 2,722 Asset expansion expenditure - - - - - Asset upgrade expenditure 505 600 40 60 - Total capital works expenditure 4.5.1 5,906 6,945 3,986 4,709 2,722 Funding sources represented by: Grants 3,556 1,590 990 1,004 1,020 Contributions - - - - - Council cash 2,350 4,355 2,996 2,705 1,702 Borrowings - 1,000 - 1,000 - Total capital works expenditure 4.5.1 5,906 6,945 3,986 4,709 2,722

Draft


Statement of Human Resources For the four years ending 30 June 2024

Forecast Actual

2019/20 $’000

Budget 2020/21

$’000


2021/22 $’000

2022/23 $’000

2023/24 $’000

Staff expenditure Employee costs - operating 11,978 12,576 12,890 13,213 13,543 Employee costs - capital - - - - - Total staff expenditure 11,978 12,576 12,890 13,213 13,543

FTE FTE FTE FTE FTE Staff numbers Employees 127 129 129 129 129 Total staff numbers 127 129 129 129 129

Draft



9.3 Financial Report - quarter ended 31 March 2020 SF/1519

Cathy Fitzpatrick – Manager Finance Robert Barber – General Manager Corporate and Community

PURPOSE OF REPORT

The report presents the financial result compared to budget for the quarter ended 31 March 2020 and presents outcomes from the 2019/20 third quarter budget review.

BACKGROUND

Section 138 of the Local Government Act 1989 requires that at least every three months the Chief Executive Officer must ensure that a statement comparing the budgeted revenue and expenditure for the financial year with the actual revenue and expenditure to date is presented to the Council.

OPERATING RESULT

Year to date 31 March 2020 operating result compared to budget

The operating result for the quarter ended 31 March 2020 was a surplus of $3.5 million, which was $602,000 more favourable than the budgeted surplus of $2.898 million as shown in Table 1 following.



Table 1 - Net Operating Result for the period ended 31 March 2020

Financial Overview

Notes: 1. Rate revenue variance is favourable due to supplementary rate revenue of

$270,074 penalty interest and additional garbage bin charges $17,638. The consideration of objections to valuations and impact of one currently rated property being accessed as non-rateable are yet to be determined and may impact on the final rate revenue outcome.

Note 2019/20 YTD

Actuals (Income) Expense

2019/20 YTD

Budget (Income) Expense

YTD Variance Actual vs Budget $'000

Variance

Revenue Rates and Charges 1 (18,658) (18,336) 322 2% User Charges - Statutory Fees and fines 2 (518) (319) 200 63% User Charges 3 (3,396) (2,981) 415 14% Operating Grants - Recurring 4 (3,025) (3,170) -145 -5% Operating Grants - Non-Recurring 5 (484) (238) 246 103% Capital Grants - Recurrent 6 (1,146) (780) 366 47% Capital Grants - Non-Recurrent 7 (227) 0 227 Contributions 8 (293) (122) 171 140% Proceeds on Sale of Assets 9 (7) (7) 0 Other Income 10 (226) (140) 86 61% Unearned Income (736) - 736 Total Revenue (28,615) (26,091) 2,624 10% Expenses Employee Costs 11 9,084 8,900 -183 -2% Materials and Services 12 10,272 9,223 -1,049 -11% Doubtful Debts 0 0 0 Finance Costs 90 101 11 11% Other Expenses 240 231 -9 -4% Depreciation 13 5,528 4,738 -790 -17% Total Expenses 25,215 23,193 -2,022 -9% Net Operating (Surplus) Deficit

(3,500) (2,898) 602 21%



2. Statutory Fees and Fines exceeded budget mainly due to Permit Fees for Statutory Planning exceeding budget, partly offset by several other fees being less than budgeted, overall $199,727 favourable.

3. User Charges numerous small variance with four large favourable variances detailed below:

Benalla Aquatic Centre – internal recognition of contract management of facility $201,641

Library – reimbursement from other Council’s for CAPEX project (matched with expenditure) $95,360

Landfill Income $56,070

Hangar Leases $53,162

4. Operating Grants – Recurring: Income is now required to be initially listed as part of Unearned Income. This change in Accounting Standards was not finalised prior to the adoption of the 2019/20 Budget. This item needs to be read in conjunction with the Unearned Income ($736,000). There are numerous small variances with three large unfavourable variances detailed below:

Aged and Disability Services - Assessment $74,950 Family Children’s services – Maternal & Child Health -

Enhanced $85,965

Aged and Disability Services - Social Support $28,063

5. Operating Grants – Non-Recurring: Additional grant funding not budgeted for in 2019/20 includes:

Natural Disaster | Storm/Wind event - February 1, 2020 $152,664 Seniors Community Grant $24,500 Youth Programs - L2P Program $18,500

The Making a Splash in Benalla Planning Project $36,000

6. Operating Grant - Recurring: Additional funding not budgeted for 2019/20 BRCC Roads to Recovery (four-year program) allocation in 2019/20 financial year an increase of $366,112 from $779,905 to $1,146,017.

7. Capital Grants - Non-Recurring: Additional grant funding not budgeted for in 2019/20 year includes:

National Stronger Regions Fund Program for the Benalla Airport Redevelopment $143,051

Building Energy Upgrades $81,292



8. Contributions Unfavourable variance - Raise the Roof Project contribution not required as direct project delivered by group: $100,000. Favourable variance additional funding not budgeted for in 2019/20 year and numerous small variance. Larger variances:

Benalla Art Gallery Trust/Friend of Gallery contributions towards Feasibility Study $60,000

Family Services Flexible Package Funding $12,390 Domestic Assistance Income - Vic Linkages

Package Program $41,401 Property Maintenance Income - Vic Linkages

Package Program $17,700 RFID Library Project – Friends of the Benalla

Library $15,000 MAV – Tobacco enforcement $11,770

9. Proceeds of Sale: Recognition of costs associated with sale of assets will reduce income by $18,000.

10. Other Income variation due to reimbursements of long service leave transfer entitlements and other reimbursements.

11. Employee Costs variation due to additional employee costs not budgeted for in 2019/20 year due to additional grant project funding in 2019/20.

12. Materials and Services has an unfavourable variance of $1,048,972 against budget. Significant large variances are due to spend associated with unbudgeted additional grant funded projects and $143,733 part costs associated with the claim for Natural Disaster Storm event 1 February 2020,which is expected to total $220,000.

Materials and Services by Division at 31 March 2020

2019/20 YTD

Budgets $

2019/20 YTD

Actuals $

Variance $

Chief Executive Office 278,604 510,241 -231,637 Corporate Division excludes * 7,876,338 8,253,958 -377,621 Operations Department * 1,068,493 1,508,207 -439,714 Total 9,223,435 10,272,407 -1,048,972-

Appendix 1 provides a breakdown of details Materials and Services expenses for the period ending 31 March 2020.

13. Budgeted depreciation based on 2017/18 valuations prior to Fair Value assessment and recognition of 2018/19 capital projects.



CAPITAL PROJECTS PROGRAM

Year to date 31 March 2020 Capital Projects Program compared to budget

As at 31 March 2020, total capital works expenditure, not including committed works, was $4.319 million, which was $329,488 less than budget.

Table 2 - Capital Projects Program Statement as at 31 March 2020

Project by Asset Type

2019/20 Full Year

Budget $

2019/20 Mid-Year Review

Forecast $

2019/20 YTD

Budgets $

2019/20 YTD

Actuals $

2019/20 YTD

Variance $

2019/20 Full Year

Forecast $

Roads 3,174,286 3,461,651 2,594,898 3,228,289 -633,392 3,545,185

Footpaths 100,000 100,000 100,000 90,561 9,439 91,000

Drainage 25,000 26,532 18,000 26,532 -8,532 25,000

Buildings 810,000 810,000 90,529 60,352 30,177 216,000

Plant, Machinery and Equipment - Capital 402,000 462,000 3,500 25,887 -22,387 49,250

Fixtures, IT, Fittings and Furniture, Artworks 100,000 60,000 9,000 0 9,000 6,500

Computers and Telecoms 320,000 452,400 285,000 186,578 98,422 309,257

Library Stock 90,000 90,000 66,965 68,753 -1,788 90,000

Waste Management 1,360,000 1,360,000 267,000 132,445 134,555 400,930

Parks, Open Spaces and Streetscapes 850,000 850,000 800,000 428,433 371,567 930,000

Aerodrome 0 143,500 0 93,081 -93,081 101,736

Off Street Carpark 14,000 14,280 14,000 14,280 -280 14,000

Other – Livestock Yards 0 20,000 0 15,911 -15,911 21,275

Software 0 0 0 13,550 -13,550 11,283

Work In Progress 440,000 355,000 400,000 (65,248) 465,248 95,000 Total 7,685,286 8,205,363 4,648,892 4,319,404 329,488 5,906,416



Full Year 30 June 2020 Forecast Operating Result compared to budget

The forecast operating result for the year ending 30 June 2020 has been updated to reflect the third quarter budget review.

The forecast operating result for the year ended 30 June 2020 is a deficit of $1.153 million which is an unfavourable variance of $1.098 million compared to the budgeted deficit of $53,000 as shown in Table 3 below.

Table 3 – Forecast Operating Result for the year ended 30 June 2020 Notes Full Year

Budgets (Income) Expense

$'000

Full Year Forecast (Income) Expense

$'000

YTD Variance

$'000

Variance %

Revenue

Rates and Charges 1 (18,348) (18,681) 333 2% Statutory Fees & fines 2 (384) (591) 207 54% User Charges 3 (3,995) (4,281) 286 7% Operating Grants - Recurring 4 (4,222) (4,279) 57 1% Operating Grants - Non Recurring 5 (276) (461) 185 67% Capital Grants - Recurrent 6 (780) (1,146) 366 47% Capital Grants - Non Recurrent 7 (2,130) (2,410) 280 13% Contributions 8 (650) (755) 105 16% Proceeds on Sale of Assets 9 (25) (7) -18 -74% Other Income (187) (177) -10 -5% Total Revenue (30,997) (32,788) 1,791 7% Expenses Employee Costs 11,946 11,978 -32 0% Materials and Services 10 12,147 13,919 -1,772 15% Doubtful Debts 15 15 0 0% Finance Costs 170 170 0 0% Other Expenses 392 339 52 13% Depreciation 11 6,381 7,519 -1,138 18% Total Expenses 31,051 33,940 -2,889 5% Net Operating (Surplus) Deficit 53 1,153 -1,100 2,075%



Notes

1. Rate and Charges revenue and contributions in lieu of rates raised are greater than budgeted by $334,000. The consideration of objections to valuations are yet to be determined, which may impact the final rate revenue outcome.

2. Statutory Fees and Fines Statutory Fees and Fines favourable variance mainly due to Permit Fees for Statutory Planning exceeding budget by $164,088 and Building Fees exceeding budget by $44,864, partly offset by several other fees being less than budgeted.

3. User Charges – several items reduced for last quarter due to COVID-19 closure of facilities overall favourable variance with additional income due to:

Benalla Aquatic Centre – internal recognition of contract management of facility $88,389

Library – reimbursement from other Council’s for CAPEX project (matched with expenditure) $95,360

Aged and Disability Services $64,000

Art Gallery Shop sales $24,132

Facilities hire - various sites $26,575 4. Operating Grant - Recurring additional funding not budgeted for in 2019/20

year over various grants, the significant variances are: There are numerous small variance with three larger favourable variances detailed below:

Financial Assistance Grant $32,794

Maternal & Child Care Health - Enhanced $30,238

Family and Children Services $16,462

5. Operating Grants Non Recurrent additional funding received not budgeted for in 2019/20 year include:

Natural Disaster Storm Event – 1 February 2020 $152,664

The Making a Splash in Benalla Planning Project $24,500

Youth Programs - L2P Program $18,500

6. Operating Grant - Recurring: Additional funding not budgeted for 2019/20 BRCC Roads to Recovery (4-year program) allocation in 2019/20 financial year an increase of $366,112 from $779,905 to $1,146,017.



7. Capital Grants - Non Recurrent additional grant funding not budgeted for in 2019/20 year includes:

National Stronger Regions Fund Program for the Benalla Airport Redevelopment $143,051

Building Energy Upgrade $81,292

Benalla Splash Park (additional ) $80,000

8. Contributions include additional funding not budgeted for in 2019/20 year and numerous small variance. Unfavourable variance - Raise the Roof Project contribution not required as direct project delivered by group - $100,000. Larger favourable variances:

Public Open Space Contributions $94,605 Benalla Art Gallery Trust/Friend of Gallery

contributions towards Feasibility Study $60,000 Family Services Flexible Package Funding $20,000 Domestic Assistance Income - Vic Linkages Package

Program $18,170 Property Maintenance Income - Vic Linkages Package

Program $17,500 Friends of the Library – RFID Project $15,000

9. Proceeds of Sale recognition of costs associated with sale of assets will reduce income by $18,500 as no major plant sold.

10. Materials and Services not budgeted for: Additional grant funded projects and contributions requiring materials:

Family and Children Services Programs includes carry forwards from prior year grants $215,575

Environmental Sustainability Grant Projects $148,721 Natural Disaster Storm Event – 1 February 2020 $143,733 Aged and Disability Services Programs includes

carry forwards from prior year grants $143,270 Innovate NE Vic Project costs $107,591 Maternal Child Health Programs includes carry

forwards from prior year grants $86,306 Art Gallery Business Case $75,000 Youth Programs $95,000



Urban Growth Structure Plan $50,000

Emergency Management $26,379

Seniors Community Program $24,500

Business Development – Digital Innovation Festival $20,591

Art Gallery Rebranding Project $19,373

Art Gallery Collection Lab Project $10,800

Walk to School program $15,000

Aged Friendly Benalla Project $11,483

Innovative Online support (youth program) $10,500

Other Materials and Services increases:

Aquatic Centre YMCA Management costs $88,389

Unsealed Roads $68,271

Insurance and risk management $68,166

Kerbside waste costs $51,518

Infrastructure – roadside vegetation $43,800

Sealed Roads $38,038

EPA Levy payable $37,129

Parks and Gardens - vegetation services $30,379

Benalla Truck Wash costs $19,000

Merchandising - Art Gallery (offset by sales) $11,355

Customer Services - trainee $20,000

Free entry to Outdoor Pool on Heat Health Alert days $10,000

Additional Mid-Year Budget Review items authorised:

Brochure printing - Tourism $10,000

11. Depreciation in 2019/20 Budget was based on 2018/19 assets values prior to Fair Value assessment and Property revaluation being finalised. The fill rate on Landfill Cell 2 in 2019/20 has also being accelerated therefore increasing depreciation and amortisation expenses beyond budgeted figures, as such depreciation charges will be higher than budgeted by $1.138 million.




High Performing Organisation Provide good governance and responsible management and planning We are compliant with our legislative and risk management responsibilities

Recommendation:

That the report be noted

2019/20Materials and Services as at31 March 2020

YTDActuals

YTDBudgets

YTDVariance

FullYear

Budget04: Vandalism 474 3,224 (2,750) 63305: Contract Staff 37,152 79,209 (42,057) 49,53806: Catering & Refreshments 18,000 41,146 (23,146) 24,00707: Materials 696,554 608,717 87,837 982,56908: Contract Payments 2,695,571 3,506,023 (810,452) 3,746,38709: Merchandise 30,933 53,350 (22,417) 41,24610: Functions & Receptions 23,793 26,957 (3,164) 31,72611: Stores Issues 94,625 255,371 (160,746) 101,63412: Repairs & Maintenance 256,026 252,074 3,952 341,38418: Lease Payments 78,750 62,907 15,843 105,00020: Bank Charges 37,401 35,872 1,529 49,87021: Advertising & Promotion 41,889 77,883 (35,994) 55,87723: Exhibitions 45,000 38,263 6,737 60,00024: Insurance 449,834 501,024 (51,190) 449,83425: Legal Expenses 145,613 74,594 71,019 199,48926: Consultants General 160,615 196,045 (35,430) 235,76227: Membership & Subscriptions 130,305 136,690 (6,385) 138,87328: Security Expenses 35,112 33,231 1,881 46,84029: Postage & Freight 45,090 37,405 7,685 60,13030: Printing, Copying & Stationery 92,104 69,886 22,218 118,32531: Rent 23,346 23,721 (375) 31,13032: Computer Support/Software 462,968 486,162 (23,194) 507,30033: Internal Plant Hire Expense 9,534 (4,443) 13,977 (0)35: Travel Expenses 36,874 28,159 8,715 45,85036: Meeting Expenses 4,584 2,657 1,927 6,12037: Staff Training / Courses 69,822 51,003 18,819 93,10038: Vehicle Expenses 4,611 143 4,468 6,15039: Electricity 278,061 317,373 (39,312) 370,78140: Water Consumption 46,458 52,582 (6,124) 61,96941: Gas 21,984 21,743 241 29,32242: Telephone 93,006 85,531 7,475 120,01443: Contributions & Reimbursements 32,910 29,704 3,206 38,88647: Green Waste Mulching 18,750 10,236 8,515 25,00049: Machine Hire 260,841 220,887 39,954 347,78851: E.P.A. Levy 338,250 371,124 (32,874) 451,00052: Domestic Animals Levy 9,384 (1,276) 10,660 12,51553: Management Committees 108,855 106,455 2,400 145,14454: Cleaning Expenses 124,056 131,409 (7,353) 165,424103: Vehicle Fuel 164,582 191,423 (26,841) 214,101104: Vehicle Maintenance - Standard 192,714 71,675 121,039 256,984105: Vehicle Lease Payments 255,936 245,923 10,013 341,289109: Canteen Trading Purchases 12,339 20,147 (7,808) 16,454110: Performing Fees 41,400 87,857 (46,457) 55,200126: Landfill Daily Cover 26,250 18,290 7,960 35,000127: Landfill Rock Supplied 11,250 20,462 (9,212) 15,000128: Gas Monitoring - Landfill 30,000 4,390 25,610 40,000130: PAG Meal Costs 14,922 5,633 9,289 19,901131: Diesel Rebate (Negative Expense) (33,099) (27,071) (6,028) (44,132)140: Carry Forward Expenditure 0 107,152 (107,152) 0144: Vehicle Maintenance - Repairs 0 80,472 (80,472) 0145: Tyres Purchased for Plant 0 14,223 (14,223) 016: Services (Non Contract) To Council 530,178 436,837 93,340 676,538160: Audit / Monitoring costs Landfill 75,000 71,525 3,475 100,000170: Museum Fees 2,775 6,098 (3,323) 3,700199: Internal Charge - Expense 800,193 871,396 (71,203) 1,066,94034: Goods Delivered (Contractual) 39,861 22,937 16,924 53,150

Total 9,223,435 10,272,407 (1,048,972) 12,146,742

*Report Contains Filters

9.3 APPENDIX 1



9.4 Capital Projects Status - quarter ended 31 March 2020

SF/2521-05 Gerard Komen – Manager Capital Projects

PURPOSE OF REPORT

The report provides an update on the 2019/20 Capital Projects Program as at 31 March 2020.

BACKGROUND

Capital projects are funded from general revenue and capital grant funding. DISCUSSION

Bridges

No bridge works are programmed for 2019/20.

Roads

Winton-Lurg Road shoulder widening stage 2 Works on site are complete and has resulted in a high quality road upgrade from Winton to Old Lurg Road. Final grant acquittal remains outstanding.

Williams Road upgrade Works are nearing completion with the road pavement in place and primer sealed. Beaching of drains and asphalting the bridge approaches remains outstanding. There are a number of drainage issues which are being investigated in order to better manage the discharge of storm water.

Irwin Road bus turnaround extensions Works on site were completed at the end of March 2019. Turnaround is open to public use. Public Transport Victoria has not altered the bus routes to date.

Gravel re-sheets and shoulder re-sheets Works are complete for gravel re-sheets and shoulder re-sheets.

Crack sealing Crack sealing works are complete.

Reseals Works are complete for resealing with some 50kms of road resealed and some 55 tonnes of recycled rubber used.



Denny Street carpark Works to upgrade the northern entrance are complete.

Footpaths Works are complete on Wedge Street and Faithfull street. Buildings

OH&S dangerous goods storage requirements Upgrades to sites have been completed.

Environmental project – solar panels Upgrading of street lighting has been completed.

Plant/Machinery

Flo Con/Jetpatcher The business case for replacing the current Flocon (patching unit) is complete and the machine has been ordered with delivery expected in the second quarter of 2020.

Computer and Telecoms IT

Asset Management System The contract has been awarded and Conquest software has been installed with data being transferred. Asset Edge software for field inspections on mobile devices is being tested.

Waste Management

Landfill Cell 3 construction Concept designs have been completed and sent to the auditors for initial approval. The concept design incorporates use of the void area and most likely will result in a cell in two parts.

Transfer Station and E-Waste shed Design for the Transfer Station and E-waste shed has been finalised and put out to tender with closure at the end of April.

Aerodrome

Airport amenities building Construction of the amenities building is complete.

Splash Park

Construction is well advanced on the approved site, adjacent to the swimming pool, with the control room, pumps, piping and water feature bases installed.



Raise the Roof Benalla Inc Construction of the roof is complete and handed over to Raise the Roof Inc.

Arundel Street Sports Complex upgrade

The scope of work is finalised and the has gone out to tender, closing in May 2020.

Subdivision supervision

Subdivision supervision continues at 4 Mile Road and McPherson Drive.


Sustainable Environment

Initiative March Quarter Update Establish a transfer station at the Benalla Landfill and Resource Recovery Centre.

Design complete. Tender to be released.



FINANCIAL IMPLICATIONS

Project by Asset Type

Note 2019/20 Full Year

Budget $

2019/20 Mid-Year Review

Forecast $

2019/20 YTD

Budgets $

2019/20 YTD

Actuals $

2019/20 YTD

Variance $

2019/20 Full Year

Forecast $

Roads 1 3,174,286 3,461,651 2,594,898 3,228,289 -633,392 3,545,185 Footpaths 100,000 100,000 100,000 90,561 9,439 91,000

Drainage 25,000 26,532 18,000 26,532 -8,532 25,000

Buildings 2 810,000 810,000 90,529 60,352 30,177 216,000 Plant, Machinery and Equipment - Capital 3 402,000 462,000 3,500 25,887 -22,837 49,250 Fixtures, IT, Fittings and Furniture, Artworks 4 100,000 60,000 9,000 0 9,000 6,500 Computers and Telecoms 5 320,000 452,400 285,000 186,578 98,422 309,257 Library Stock 90,000 90,000 66,965 68,753 -1,788 90,000

Waste Management 6 1,360,000 1,360,000 267,000 132,445 134,555 400,930 Parks, Open Spaces and Streetscapes 7 850,000 850,000 800,000 428,433 371,567 930,000 Aerodrome 8 0 143,500 0 93,081 -93,081 101,736 Off Street Carpark 14,000 14,280 14,000 14,280 -280 14,000

Other – Livestock Yards 0 20,000 0 15,911 -15,911 21,275

Software 0 0 0 13,550 -13,550 11,283

Work In Progress 9 440,000 355,000 400,000 (65,248) 465,248 95,000 Total 7,685,286 8,205,363 4,648,892 4,319,404 329,488 5,906,416



Notes:

1. Additional funds from 2020/21 Roads to Recovery allocation. 2. Includes Arundel Street Sports Facility project. 3. $60,000 reallocated to Major Plant Strategy from BPACC Digital Projector

project. $432,000 allocated to the purchase of road maintenance vehicle. Final cost of unit was $422,469.

4. $60,000 reallocated to Major Plant Strategy. 5. Carry forward funds from previous year Server budget. 6. Includes Transfer Station, e-Waste Shed and Cell 3 design. 7. Includes the Benalla Splash Park. 8. Carried forward Federal Funding. 9. Includes Raise the Roof shed as it will not become a Council asset.

Recommendation: That the report be noted.



9.5 2019/20 Community Support Program

DOC20/35736 Tom Arnold – Community Development Coordinator

Jane Archbold – Manager Community Jilian Mulally – Manager Arts Communications Tourism and Events

PURPOSE

The report presents recommendations for funding of applications received under the 2019/20 Community Grants Program and Major Event Funding Program.

BACKGROUND

The Council’s 2019/20 Budget allocates $81,666 to the Community Support Program. Up to $66,666 of this is allocated to the Community Grants Program and the Youth Participation Grant. The $15,000 balance is directed toward monthly Community Sponsorship Grants. The Major Event Funding Program is allocated $12,000.

The Community Grants Program is an annual funding allocation designed to encourage not-for-profit community-based organisations to seek funding up to $2,500 for projects and activities to assist in building healthy, vibrant and sustainable communities across the Benalla Rural City. The Youth Participation Grants Program provides an opportunity for youth-led projects to seek funding of up to $1,000 to help support eligible projects and events which are planned, driven and delivered by young people for young people.

In February 2020, the Council invited interested community groups and not-for-profit organisations to apply for assistance under the Community Grants Program, Major Events and the Youth Participation Grants Program.

A Grant Information session was held in partnership with Valley Sport and the Tomorrow Today Foundation (TTF) on Monday 10th February at the Benalla Library. Additionally, a previous successful applicant shared their tips and reflections on applying for a community grant. The information session was an opportunity for community groups to learn more about the grant application process and to access grant writing tips. Approximately 35 people attended the session.

The Community Support Program including the Community Grants, Major Events, Community Sponsorship Grants and Youth Participation Grants were also promoted in the local media, in the Council’s Newsletter, website and Facebook page and through local networks and Community newsletters.



DISCUSSION

Community Grants Program All applications were assessed by Council officers against criteria detailed in the 2019 Community Grant Program Guidelines. Recommendations for funding are presented in the table below. Legend:

Fully Funded

Part Funded

Not Funded

Drought Funding

Youth Grant

Applicant Project Funding

requested Proposed funding

Albert Heaney Reserve Committee of Management

Generator to back up in case of power outage and First aid kit $2,500 $2,500

Benalla Gardens Tennis Club

Resurface courts (acrylic) 5 and 6 $2,500 $2,500

Benalla Girl Guides Purchase two reverse cycle air conditioning units for hall $2,500 $2,500

Benalla Lawn Tennis and Croquet Club

Upgrade plumbing to kitchen and water courts $2,500 $2,500

Benalla Little Athletics Line marking of athletic field $2,500 $2,500

Benalla Pistol Club Defib, disabled car park, and window installation $2,500 $2,500

Cooinda Village Inc. Let's find our voice project between Cooinda and FJC College $2,500 $2,500

Goorambat Football Netball Club

Upgrade of umpires’ facility $2,500 $2,500

Lima School Community Centre Committee

Lima School building repairs - weatherboards, internal and external painting $2,500 $2,500

Moorngag Cemetery Trust Extend front gate to Moorngag Cemetery to comply with CFA requirements $2,500 $2,500

North East Art Trail Inc. Signage to guide tourists $2,500 $2,500

Thoona Memorial Hall Committee Inc.

Interior / exterior painting $2,500 $2,500

Warrenbayne Recreation Reserve

Kitchen upgrade - bench and hot water service $2,500 $2,500

Benalla Senior Citizens Club Inc.

New bowling mats $2,500 $2,500



Applicant Project Funding requested

Proposed funding

Ride Avenue Pre-School Awning for front entrance $2,431 $2,431

Benalla Saints Sports Club Inc.

New bain-marie for canteen $2,258.30 $2,200

Samaria Suns Reversible jumpers for community engagement games $2,079 $2,079

Benalla Netball Association Inc.

Balls, bibs, vests for netball competition and umpires $2,000 $2,000

Benalla Table Tennis Association

Install lighting for table tennis on court three BIRC $1,864.50 $1,865

Rose City Country Music Club Inc.

Hall hire cost - Lakeside Community Centre $1,800 $1,800

Benalla Family Research Group

Purchase of updated computer $1,730 $1,730

Benalla Camera Club Hire of rental property for exhibition $1,650 $1,650

Goorambat and District Community Group Inc.

Signage to direct tourists to and from Goorambat along art trail $1,600 $1,600

Molyullah Upper Ryan’s Creek Heritage

Signage for heritage sites $2,500 $1,500

North Eastern Muzzleloaders and Colonial Firearms

To purchase and plant a combination of shade, deciduous, and non-eucalyptus trees $2,500 $1,500

Lima South Community Hall Pie warmer, microwave, ceiling fan $1,439 $1,439

Devenish Public Hall Committee of Management

Replacement of rotted stumps and bearers for hall $1,048 $1,048

Aviation Museum (YOUTH GRANT) Purchase of mannequins for the museum $1,000 $1,000

Benalla and District Pre-School Partnership - Bernard Briggs Campus

Purchase of equipment for Bernard Briggs Kindergarten

$2,000 $1,000

Benalla Indoor Recreation Centre

Replacement of steel poles for badminton and netball activities to aluminium $2,500 $1,000

Lima South Rural Fire Brigade

Funds for updated training material and high-powered torch $2,226.86 $1,000

Molyullah Recreation and Public Hall Reserve

Marquee hire Molyullah Easter Sports $2,500 $1,000

Swanpool and District Community Development Association Inc.

Production of tourist maps featuring local businesses, accommodation, points of interest $1,000 $1,000



Applicant Project Funding requested

Proposed funding

Moira Benalla Club Inc. Maintenance work on building - windows, painting $2,500 $1,000.

Benalla Young Sportspersons Trust

Supporting young Benalla athletes $2,000 $1,000

Benalla Hockey Club Purchase of 30 hockey sticks, pads and other equipment $775 $775

Molyullah Hall Fish and Chip night

Refurbish fish and chip room $2,500 $0

Balloon Association of Victoria Inc.

LPG tank install at Airport $2,500 $0

Benalla & District Adult Riding Club Inc.

Solar powered irrigator to water sand arena, Roy Hill Pavilion $2,000 $0

Benalla Agricultural & Pastoral Society

Funding assistance for promotion of show jumping event at show grounds $2,500 $0

Benalla All Blacks Sand and polish floor in club function room $2,500 $0

Benalla Bushrangers Cricket Club

Replacing two hard wickets at Arundel street ground $2,500 $0

For the good of Devenish Historic sign for Devenish township $1,500 $0

Glenrowan Vignerons, Winton Wetlands, and NE Art Trails

Funding for brochure to increase visitation

$2,500 $0

Life Saving Victoria Sink or swim program $2,494 $0

Raise the Roof Arena rake $2,400 $0

Rotary Club of Benalla Drinking fountain in Denny St carpark $2,500 $0

Total requested funding $102,295.66 Available funding $66,666.00 Total proposed allocation $66,617.00

Major Event Funding The Council’s Major Event Funding Program enables local community groups, clubs, organisations and external event groups to seek funding to assist in the staging of events that

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