Budget performance and community grants up for discussion in November

The next Ordinary Council meeting will be held in Council Chambers from 9am on Tuesday 15 November.

The meeting will be live-streamed via Council's YouTube page and on the Kempsey Shire Council website.

For a full outline of the meeting, discussion points and attachments complementing the reports, please click on 15 November 2022 Ordinary Council Meeting on the Agenda and Business Papers page.

A brief description of the agenda items is provided below.

How is Council performing so far?

Councillors will note the progress of the Delivery Program and Operational Plan 2022-23 for the first quarter of the financial year. This compares the planned progress on projects for the 2023-23 financial year and the actual progress that has been made.

A summary of the budget performance is below.

Income

In regard to the total full year income, there is a decrease of $2.1 million. This decrease can be attributed to the deferral of spending on major Water and Sewer projects to the next financial year. This means Council won't receive grant income for the deferred projects, with the significant projects being:

• Crescent Head Water Treatment Plant ($5.4M)
• Willawarrin Water Treatment Plant ($2.2M)
• Steuart McIntyre Dam Water Treatment Plant ($9.5M)
• Stuarts Point Sewer Scheme ($3.0M)

Capital grants for Council's general fund relating to natural disasters and projects as well as grants for Council's operating fund relating to flood mitigation, high property weeds and community events have helped offset this decrease.

Expenses

There is a total full year expense increase of $3.3 million. The major factors that contribute to this increase include:

• $1.1 million upgrading street lighting to LED bulbs, which is funded by the Environmental Levy reserve.
• Moving $500,000 from the capital road works to the operational road works budget. This is all grant funded.
• $400,000 of grant funded economic development and community development initiatives.
• $200,000 for necessary flood mitigation work because of recent floods.

Capital Expense

The total full year of capital expenditure has decreased by $17.7 million. This includes loan repayments. Once again, a large section of this decrease relates to the deferral of major Water and Sewer projects contributing $16.9 million to the decrease. Some projects that help offset this decrease include:

• $500,000 on renewing roads, bridges and footpaths
• $1 million on renewing stormwater drainage, flood plain management and Savages and Elringtons Lane in Kempsey

In the first quarter, capital expenditure sits at $10 million, indicating a challenge to spend the remaining $97 million.

Projects underway

During the first quarter, Council commenced 142 projects outlined in the Operational Plan. The projects are defined using the four themes outlined in the Community Strategic Plan 2042: Your Future. Seven projects are currently behind schedule, mainly due to wet weather, and/or resource limitations.

More than $53,000 allocated to community groups

As part of Round One of Council's Community Grants Program for 2022-23, there were 28 applications received from community groups.

Of these applications, 24 met the eligibility criteria and Councillors will be asked whether to approve grants totalling the amount of $53,349.93 to these groups. All applications were accessed fairly and transparently through the eligibility criteria.

Below is an outline of the groups seeking grant assistance.

Mayoral Community Fund:

Environmental Levy

Quick Grants – Seniors Festival

Quick Grants – Youth Week

Quick Grant – Festive Grant:

When is a shed a detached dwelling?

A development application (DA2200497) has been submitted to Council asking for an existing shed to be turned into a detached dual occupancy house on Warbro Road, Toorooka.

This particular development does not comply with the Kempsey Local Environmental Plan's rural and residential zoning as it is not within 100 metres of the existing dwelling. Therefore, the applicant is asking for special consent.

As it is 146 metres from the primary dwelling, Council will discuss whether the development should proceed taking into account social, economic and environmental considerations.

Agreeing to a new code of meeting practice

Councillors will be asked whether they wish to approve a new Code of Meeting Practice.

If Council adopts the draft Code of Meeting Practice, this will take effect from Wednesday 16 November 2022.

Councillor Expenses and Facilities moving forward

Councillors will consider adopting the draft Councillor Expenses and Facilities Policy.

This policy guides what costs and equipment Councillors can claim or acquire as part of their role.

If Council adopts the draft Councillor Expenses and Facilities Policy, this will take effect from Wednesday 16 November 2022.

Waiving fees for Aboriginal Cultural Activities at Back Creek

South West Rocks Figtree Descendants Aboriginal Corporation (SWRFDAC) has requested that Council waive fees and charges associated with their cultural tourism activities at Back Creek, South West Rocks. This includes stand-up paddle boarding and kayaking.

Back Creek is a culturally significant and special location for SWRFDAC. They have been using Back Creek for generations as it provides food and resources for their people and as custodians of the area, they continue to protect the natural landscape.

This application is part of a larger cultural tourism program being developed by SWRFDAC.

It is recommended that Councillors allow the fee and charges for SWRFDAC, totalling $1,078, to be waived. This will support a new and developing Aboriginal business to operate on Country, demonstrating further implementation of strategic actions endorsed by Council through Macleay Valley Horizon 2030 and Kempsey Reconciliation Action Plan.

Changing the December Council Meeting date

Councillors will consider if they wish to reschedule the December Council Meeting from Tuesday 20 to Tuesday 1 December.

The scheduled meeting is close to Council's shutdown period, and this may impact the availability of key staff.

General Manager delegation

A delegation to the General Manager is required to enable Council's staff to undertake its day-to-day operational activities. Providing this delegation facilitates the effective and efficient operation of Council by providing the General Manager with sufficient power and authority to generally manage, control, and administer the affairs of Council on a day-to-day basis.

It is recommended that Council resolves to delegate/sub-delegate to the General Manager the functions, according to the Instrument of Delegation to General Manager.

Acting General Manager appointment

Council is being asked to appoint an acting General Manager should the General Manager be absent from work between 1 January 2023 and 31 December 2023.

The recommendation outlines that the Director of Corporate and Commercial will be appointed General Manager. If the Director of Corporate and Commercial is unable or willing to act as General Manager, the Director of Operations and Planning will be appointed as acting General Manager.

Order of Business considered in open session

9.1 2022-23 Quarter 1 Corporate Performance Report

9.2 Community Grant Program 2022-23 - Round 1

9.3 DA2200497 - Continued Use of an Existing Shed as a Detached Dual Occupancy House at Toorooka

9.4 Code of Meeting Practice

9.5 Councillor Expenses and Facilities Policy

9.6 Request to Waive Commercial Licence Fees

9.7 Change of Council Meeting Date - December 2022

9.8 Delegation of Authority to the General Manager

9.9 Acting General Manager Appointment

9.10 Statement of Cash and Investments - October 2022