HSC_100K_NEW

 

 

BUSINESS PAPER

 

General Meeting

 

Wednesday 13 November 2024

at 6:30PM

 

 

 

 


Hornsby Shire Council                                                                                           Table of Contents

Page 0

 

TABLE OF CONTENTS

 

AGENDA AND SUMMARY OF RECOMMENDATIONS

Rescission Motions

Mayoral Minutes

ITEMS PASSED BY EXCEPTION / CALL FOR SPEAKERS ON AGENDA ITEMS

GENERAL BUSINESS

Office of the General Manager

Item 1     GM52/24 Hornsby Shire Council 2023-2024 Annual Report and 2024 State of The Shire Report on The Implementation of Hornsby Shire's Community Strategic Plan............................ 1

Item 2     GM18/24 Code of Conduct Complaints - Annual Report................................................ 7

Item 3     GM57/24 Councillor Conduct and Meeting Practices - A New Framework..................... 10

Corporate Support Division

Item 4     CS44/24 2023/24 Audited Financial Statements - Presentation to the Public................. 13

Item 5     CS58/24 Investments And Borrowings For 2024/2025 - Status For The Period Ending 30 September 2024....................................................................................................... 17

Item 6     CS59/24 2024/25 Budget - September 2024 Quarter Review....................................... 20

Community and Environment Division

Nil

Planning and Compliance Division

Nil

Infrastructure and Major Projects Division

Nil

Confidential Items

Item 7     CS57/24 Settlement of Appeal Against Compensation - Compulsory Acquisition of a Property at Hornsby

PUBLIC FORUM – NON AGENDA ITEMS

Questions with Notice

Mayor's Notes

Item 8     MN8/24 Mayors Notes 01 October to 31 October 2024................................................ 29

Notices of Motion     

SUPPLEMENTARY AGENDA

MATTERS OF URGENCY

 

 


Hornsby Shire Council                                                   Agenda and Summary of Recommendations

Page 0

 

AGENDA AND SUMMARY OF RECOMMENDATIONS

 

Acknowledgement of Country

Statement by the Chairperson: 

"Council recognises the Traditional Owners of the lands of Hornsby Shire, the Darug and GuriNgai peoples, and pays respect to their Ancestors and Elders past and present and to their Heritage. We acknowledge and uphold their intrinsic connections and continuing relationships to Country."

PRESENT

NATIONAL ANTHEM

OPENING PRAYER/S

Acknowledgement of RELIGIOUS DIVERSITY

Statement by the Chairperson:

"We recognise our Shire's rich cultural and religious diversity and we acknowledge and pay respect to the beliefs of all members of our community, regardless of creed or faith."

Video and AUDIO RECORDING OF COUNCIL MEETING

Statement by the Chairperson:

"I advise all present that tonight's meeting is being video streamed live via Council’s website and also audio recorded for the purposes of providing a record of public comment at the meeting, supporting the democratic process, broadening knowledge and participation in community affairs, and demonstrating Council’s commitment to openness and accountability.  The audio and video recordings of the non-confidential parts of the meeting will be made available on Council’s website once the Minutes have been finalised. All speakers are requested to ensure their comments are relevant to the issue at hand and to refrain from making personal comments or criticisms.  No other persons are permitted to record the Meeting, unless specifically authorised by Council to do so."

APOLOGIES / LEAVE OF ABSENCE / Request for remote attendance

political donations disclosure

Statement by the Chairperson:

“In accordance with Section 10.4 of the Environmental Planning and Assessment Act 1979, any person or organisation who has made a relevant planning application or a submission in respect of a relevant planning application which is on tonight’s agenda, and who has made a reportable political donation or gift to a Councillor or employee of the Council, must make a Political Donations Disclosure Statement.

If a Councillor or employee has received a reportable political donation or gift from a person or organisation who has made a relevant planning application or a submission in respect of a relevant planning application which is on tonight’s agenda, they must declare a non-pecuniary conflict of interests to the meeting, disclose the nature of the interest and manage the conflict of interests in accordance with Council’s Code of Conduct.”

declarations of interest

Councillors are reminded of their Oath or Affirmation of Office made under section 233A of the Act and their obligations under the Council’s Code of Conduct to disclose and appropriately manage conflicts of interest.

Clause 4.16 and 4.17 of Council’s Code of Conduct for Councillors requires that a councillor or a member of a Council committee who has a pecuniary interest in a matter which is before the Council or committee and who is present at a meeting of the Council or committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable. The disclosure is also to be submitted in writing (on the form titled “Declaration of Interest”).

4.16      A councillor who has a pecuniary interest in any matter with which the council is concerned, and who is present at a meeting of the council or committee at which the matter is being considered, must disclose the nature of the interest to the meeting as soon as practicable.

4.17      The councillor must not be present at, or in sight of, the meeting of the council or committee:

a)            at any time during which the matter is being considered or discussed by the council or committee, or

b)            at any time during which the council or committee is voting on any question in relation to the matter.

Clause 5.10 and 5.11 of Council’s Code of Conduct for Councillors requires that a councillor or a member of a Council committee who has a non pecuniary interest in a matter which is before the Council or committee and who is present at a meeting of the Council or committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable. The disclosure is also to be submitted in writing (on the form titled “Declaration of Interest”).

5.10      Significant non-pecuniary conflict of interests must be managed in one of two ways:

a)            by not participating in consideration of, or decision making in relation to, the matter in which you have the significant non-pecuniary conflict of interest and the matter being allocated to another person for consideration or determination, or

b)            if the significant non-pecuniary conflict of interest arises in relation to a matter under consideration at a council or committee meeting, by managing the conflict of interest as if you had a pecuniary interest in the matter by complying with clauses 4.16 and 4.17.

5.11      If you determine that you have a non-pecuniary conflict of interest in a matter that is not significant and does not require further action, when disclosing the interest you must also explain in writing why you consider that the non-pecuniary conflict of interest is not significant and does not require further action in the circumstances.

confirmation of minutes

THAT the Minutes of the General Meeting held on 23 October, 2024 be confirmed; a copy having been distributed to all Councillors.

Petitions

presentations

Rescission Motions

Mayoral Minutes

ITEMS PASSED BY EXCEPTION / CALL FOR SPEAKERS ON AGENDA ITEMS

Note:

Persons wishing to address Council on matters which are on the Agenda are permitted to speak, prior to the item being discussed, and their names will be recorded in the Minutes in respect of that particular item.

Persons wishing to address Council on non agenda matters, are permitted to speak after all items on the agenda in respect of which there is a speaker from the public have been finalised by Council.  Their names will be recorded in the Minutes under the heading "Public Forum for Non Agenda Items".

 

GENERAL BUSINESS

·                Items for which there is a Public Forum Speaker

·                Public Forum for non agenda items

·                Balance of General Business items

 

Office of the General Manager

Page Number 1

Item 1          GM52/24 Hornsby Shire Council 2023-2024 Annual Report and 2024 State of the Shire Report on the implementation of Hornsby Shire's Community Strategic Plan

 

RECOMMENDATION

THAT:

1.         The Hornsby Shire Council 2023-2024 Annual Report attached to General Manager’s Report No. GM52/24 be endorsed.

2.         The Annual Report be supplemented by Council’s 2023/24 Audited Financial Statements once they are “presented to the public” at the 13 November 2024 General Meeting in accordance with the requirements of the Local Government Act 1993.

3.         The 2024 State of the Shire Report attached to General Manager’s Report No. GM52/24 be received and noted and form part of the Annual Report.

 

Page Number 8

Item 2          GM18/24 Code of Conduct Complaints - Annual Report

 

RECOMMENDATION

THAT the contents of General Manager’s Report No. GM18/24 be received and noted.

 

Page Number 12

Item 3          GM57/24 Councillor Conduct and Meeting Practices - A New Framework

 

RECOMMENDATION

THAT the draft submission in response to the Discussion Paper – Councillor conduct and meeting practices, be adopted and referred to the Office of Local Government.

 

Corporate Support Division

Page Number 15

Item 4          CS44/24 2023/24 Audited Financial Statements - Presentation to the Public

 

RECOMMENDATION

THAT the 2023/24 General Purpose Financial Statements and associated Auditor's Report, as presented to the public on 13 November 2024, be adopted.

 

Page Number 19

Item 5          CS58/24 Investments And Borrowings For 2024/2025 - Status For The Period Ending 30 September 2024

 

RECOMMENDATION

THAT the contents of Director’s Report No. CS58/24 be received and noted.

 

Page Number 22

Item 6          CS59/24 2024/25 Budget - September 2024 Quarter Review

 

RECOMMENDATION

THAT the September 2024 Quarter Review of the Operational Plan (Budget) for 2024/25 be received and noted.

 

Community and Environment Division

Nil

Planning and Compliance Division

Nil

Infrastructure and Major Projects Division

Nil

Confidential Items

Item 7          CS57/24 Settlement of Appeal Against Compensation - Compulsory Acquisition of a Property at Hornsby

 

This report should be dealt with in confidential session, under Section 10A (2) (g) of the Local Government Act, 1993. This report contains advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege.

PUBLIC FORUM – NON AGENDA ITEMS

Questions with Notice

Mayor's Notes

Page Number 32

Item 8          MN8/24 Mayors Notes 01 October to 31 October 2024

 

 

Notices of Motion     

SUPPLEMENTARY AGENDA

MATTERS OF URGENCY

 


 


 

General Manager's Report No. GM52/24

Office of the General Manager

Date of Meeting: 13/11/2024

 

1        HORNSBY SHIRE COUNCIL 2023-2024 ANNUAL REPORT AND 2024 STATE OF THE SHIRE REPORT ON THE IMPLEMENTATION OF HORNSBY SHIRE'S COMMUNITY STRATEGIC PLAN   

 

 

EXECUTIVE SUMMARY

·              The Annual Report is a key document ensuring accountability between a council and its community.

·              The Hornsby Shire Council 2023-2024 Annual Report, which reports on Council’s achievements in implementing its Delivery Program and Operational Plan, has been prepared in accordance with the requirements of the Local Government Act 1993, Regulation and Office of Local Government (OLG) requirements. The Annual Report also includes information which ensures that annual reporting requirements imposed on Council by other legislation or statutory bodies are met.

·              The OLG also requires that, in the year in which an ordinary election is held, a council must report on its achievements in implementing the Community Strategic Plan over the previous four years (the Council term). This report, known as the State of the Shire Report, tracks progress in achieving the objectives of the Community Strategic Plan – in this case since the Community Strategic Plan was updated and endorsed in June 2022.

·              Community indicators appearing in the Community Strategic Plan have been updated with the latest available results. Progress against the baselines for these community indicators is represented visually in the 2024 State of the Shire Report by traffic light style colour-coded icons and trends are shown with directional arrows. Some measures have shown improvement whilst others have declined.

·              The Hornsby Shire Council 2023-2024 Annual Report and 2024 State of the Shire Report are presented to Council for endorsement and noting respectively.

RECOMMENDATION

THAT:

1.         The Hornsby Shire Council 2023-2024 Annual Report attached to General Manager’s Report No. GM52/24 be endorsed.

2.         The Annual Report be supplemented by Council’s 2023/24 Audited Financial Statements once they are “presented to the public” at the 13 November 2024 General Meeting in accordance with the requirements of the Local Government Act 1993.

3.         The 2024 State of the Shire Report attached to General Manager’s Report No. GM52/24 be received and noted and form part of the Annual Report.


PURPOSE

The purpose of this Report is to present the Hornsby Shire Council 2023-2024 Annual Report for endorsement, and to present the 2024 State of the Shire Report for noting by Council.

BACKGROUND

Section 428 (1) of the Local Government Act 1993 requires that a council prepare an annual report within five months of the end of the financial year. The council is required to place the report on its website and submit a copy to the OLG.

The annual report in the year in which an ordinary election of councillors is held must also report on progress in achieving the objectives of the Community Strategic Plan. This report, known as the 2024 State of the Shire Report, is also included in the Annual Report as a separate document.

Due to the COVID-19 pandemic, the Minister for Local Government announced the postponement of the September 2020 Local Government Elections to 4 December 2021 (refer OLG Circular 21-20 / 25 July 2021) thereby reducing the Council term to under three years rather than the usual four years. This impacts on the reporting period contained in the State of the Shire Report.

2023-2024 Annual Report

The Hornsby Shire Council 2023-2024 Annual Report has been prepared in accordance with the requirements of the Local Government Act 1993, the Local Government (General) Regulation and the OLG’s Integrated Planning and Reporting (IP&R) Guidelines (September 2021) developed by the OLG in line with section 406 of the Act.  Included in the report is consideration of Council’s achievements in implementing its 2023-2026 Delivery Program and 2023/24 Operational Plan. The report also considers the effectiveness of the principal activities undertaken to achieve the objectives contained within the plan.

Highlights and progress in the Annual Report are laid out to align with Council’s Integrated Planning and Reporting documents. The document is structured around the four themes of Liveable, Sustainable, Productive and Collaborative, which address the quadruple bottom line, the eight Strategic Directions, which guide specific directions, and the 16 Focus Areas which encapsulate the principal activities of the Delivery Program and are Council’s adopted delivery pathways to the 25 Long-Term Goals in the Community Strategic Plan. Reporting in this hierarchical fashion allows the community to identify and track progress against the elements of the adopted vision.

The Annual Report includes 2023/24 results and performance against Annual Targets for 112 annual and/or quarterly performance measures within the 2023-2026 Delivery Program and shows progress and trends against 2022/23 results. 

The Report also contains updates on Major Projects. Key operational and other capital projects are also included throughout the Report. Noteworthy achievements include:

LIVEABLE

·              Heritage Interpretation Strategy and Action Plan endorsed in November 2023

·              Aboriginal Heritage Study and Implementation Action Plan adopted in June 2024

·              Hornsby Shire Social Plan 2024-2034 adopted in July 2024

·              Arts and Cultural Plan 2024-2029 adopted in July 2024

·              Galston Aquatic and Leisure Centre upgrades completed and official opening held in February 2024.

SUSTAINABLE

·              Development Control Plan amended to restrict the use of indoor gas appliances in all new residential buildings

·              Solar panels installed on Hornsby Aquatic and Leisure Centre

·              Three new electric vehicle chargers installed on Council land

·              Twenty new Asset Protection Zones established.

PRODUCTIVE

·              Coronation StrEat! Project delivered and official launch held in December 2023

·              Development Control Plan amended to require minimum electric vehicle charging connection points for new residential and commercial developments

·              Galston Village Public Domain Plan endorsed in July 2024.

COLLABORATIVE

·              Hornsby Town Centre Master Plan adopted in November 2023

·              Updated Long Term Financial Plan 2024/25-2033/34 adopted in August 2024

·              Planning Agreements Policy 2024 adopted in June 2024

·              Hornsby Development Control Plan 2024 published

·              7 City View Road Planning Proposal and Planning Agreement completed

·              Byles Creek Planning Proposal endorsed

·              The organisation’s cyber security strengthened

·              Quarterly news booklet ‘Our Council’ introduced and distributed to all letterboxes in Hornsby Shire.

CAPITAL PROJECTS

Completion of 66 capital projects, including:

·              Upgraded playgrounds at Fagan Park – The Children’s Forest, The Lakes of Cherrybrook, Glenorie Community Centre, Hawkins Hall Community Centre - Thornleigh, Wisemans Ferry Recreation Reserve, as well as minor upgrades to a further 12 parks, e.g. playground undersurface, fence and park furniture renewals

·              Upgrades at eight sporting facilities, e.g. lighting, surface renewals, amenities

·              Paid parking software updated at Fagan Park car park

·              A separate area for small dogs created at Greenway Park, Cherrybrook dog off leash area

·              Seven new footpaths (totalling 1,890 metres), and three shared paths (totalling 900 metres)

·              605 metres of local roads rehabilitated

·              870 metres of new/reconstructed kerb and guttering

·              Stair and access improvements at Lady Hawkesbury Wharf, Wisemans Ferry

·              Nine pedestrian facility improvements, including pedestrian refuges and crossings

·              Installation of safety barrier at Singleton Road, Wisemans Ferry

·              961 metres of bushwalking tracks, boardwalks and bridges constructed/upgraded at eight sites

·              Stormwater quality improvements at three sites

·              Façade improvements to Hornsby Library.

2024 State of the Shire Report

The 2024 State of the Shire Report has been prepared in accordance with the requirements of s428 (2) of the Local Government Act 1993. The OLG’s Integrated Planning and Reporting Handbook (September 2021) states that Council should prepare a report tracking progress in achieving the objectives of the Community Strategic Plan to assist the new council to undertake a review of this document. This report should be presented to the second meeting of a newly elected council for noting.

Council’s Community Strategic Plan, Your vision | Your future 2032, was endorsed in June 2022. It comprises four themes: Liveable, Sustainable, Productive, Collaborative, and each theme outlines:

·              Strategic Directions (8) – linked to the related 17 United Nations Sustainable Development Goals and 16 Resilient Sydney Major Acute Shocks and Chronic Stresses

·              Long-Term Goals (25) – the kind of place the community wants Hornsby Shire to be

·              Plans of action (56) – how we are going to achieve the long-term goals

·              Council’s role in the delivery of the plan of action (Leader, Provider, Collaborator, Capacity builder, Advocate)

·              Community Indicators (31) linked to the eight Strategic Directions to measure progress towards achieving the community’s vision and priorities.

Council first published a baseline snapshot document describing the state of the Hornsby Shire in 2010. The document was updated in 2012, 2016 and 2021 and prepared as End of Term Reports for those Council terms. The IP&R Handbook (September 2021) updated the requirement for an End of Term Report to instead require that a State of the Shire Report be prepared for and presented to the second meeting of an incoming council.

Given the truncated previous term of Council, the 2024 State of the Shire Report (attached) reflects on the last two years, providing a snapshot of progress towards the Hornsby Shire community vision. The document is organised around the four themes of Liveable, Sustainable, Productive and Collaborative in Council’s Community Strategic Plan. 

Research conducted when developing the Community Strategic Plan told us that people love living in Hornsby Shire because of the natural environment, particularly the bushland, national parks, trees and green spaces. The community is passionate about protecting the region and looking after each other; they express an appreciation of the peaceful lifestyle, proximity to the city and welcoming community. People also value opportunities to collaborate with Council.

Overall quality of life measured in 2020 showed that 80% of residents classed their quality of life as very good or excellent.

Hornsby Shire Council is a major contributor to wellbeing in the Shire and is also the largest employer in the Shire.  Its role is to:

·              Provide community leadership, having regard to the long term and cumulative effects of its decisions

·              Be the custodian and trustee over public assets

·              Manage, develop, protect, restore, enhance and conserve the environment of the Shire

·              Facilitate the development, improvement and coordination of its local communities.

Whilst Council delivers many of the services that impact on residents’ quality of life in alignment with the adopted vision, it is noted that Council is not the only influencer of a person’s sense of quality of life and a collaborative approach is required with the community, not for profits and other levels of government to fulfil the vision of the community.

The 2024 State of the Shire Report addresses social, environmental, economic and civic leadership objectives over the past two years. It includes the latest results, progress against baseline measures, and trends against 31 community indicators, so the reader can track progress over a broad range of issues.

Improvements in indicator results can be seen across a wide range of areas, including employment generating development, Gross Regional Product, housing diversity, educational attainment, Council’s financial performance and customer satisfaction with Council’s customer experience, waste diverted from landfill, access to public transport and water quality. 

Areas that have seen a decline (generally represented by relatively small movements in the data) include the level of volunteering, the incidence of personal and property crime offences, financial stress and community engagement participation. There has been a negative movement in trips to work taken by public and active transport, but this would be due to the confounding impacts of travel restrictions during the COVID-19 pandemic and increased working from home. More commentary on the progress of these indicators is contained within the State of the Shire Report.

The State of the Shire Report will be an important foundational tool in the review of the Community Strategic Plan to be undertaken by 30 June 2025.

Both the 2023-2024 Annual Report and the 2024 State of the Shire Report are attached to this Council Report. Once considered by Council, hard copies will be available to view at Council’s Customer Service area at Hornsby Library and Shire libraries and they will be available electronically on Council’s website.

The Annual Report will formally be supplemented by Council’s audited financial statements once Council has considered Director’s Report No. CS44/24 – 2023/24 Audited Financial Statements – Presentation to the Public (at the 13 November 2024 General Meeting).

A copy of the final 2023-2024 Annual Report, including the 2024 State of the Shire Report and the 2023/24 Audited Financial Statements, will be provided to the OLG by 30 November 2024.

BUDGET

There are no budgetary implications associated with this Report.

POLICY

There are no policy implications associated with this Report.

CONCLUSION

Council’s consideration of the 2023-2024 Annual Report and 2024 State of the Shire Report at the November General Meeting will ensure that they are submitted to the OLG in line with statutory requirements.

The 2023-2024 Annual Report outlines Council’s achievements in implementing its Delivery Program through the 2023/24 Operational Plan and the effectiveness of the principal activities undertaken by the organisation over the past year. The 2024 State of the Shire Report provides a snapshot of progress towards the community vision set out in the Community Strategic Plan, Your vision | Your future 2032.

The Council has played a critical leadership role in coordinating progress towards this vision by ensuring that its strategic activities are focussed on achieving the specific community goals whilst ensuring the ongoing financial sustainability of the organisation.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is Julie Ryland, Manager Strategy and Place, who can be contacted on 9847 6773.

  

 

 

 

 

Steven Head

General Manager

Office of the General Manager

 

 

 

 

 

Attachments:

1.

2023-2024 Annual Report

 

 

2.

2024 State of the Shire Report

 

 

 

 

File Reference:           F2023/00012

Document Number:     D08989139

 


 

General Manager's Report No. GM18/24

Office of the General Manager

Date of Meeting: 13/11/2024

 

2        CODE OF CONDUCT COMPLAINTS - ANNUAL REPORT   

 

 

EXECUTIVE SUMMARY

·              Clause 11.1 of Council’s Procedures for the Administration of the Code of Conduct requires the Complaints Coordinator to report annually to Council on Code of Conduct complaints made about Councillors and/or the General Manager.

·              Two (2) Code of Conduct complaints were received about Councillors and/or the General Manager in the year to 30 September 2024. Both complaints were finalised by the independent conduct reviewer’s at the Preliminary Assessment stage and did not progress to investigation.

 

RECOMMENDATION

THAT the contents of General Manager’s Report No. GM18/24 be received and noted.

 


PURPOSE

The purpose of this Report is to meet the requirements of Council’s Procedures for the Administration of the Code of Conduct (Procedures) in respect of the receipt of Code of Conduct complaints during the period 1 October 2023 to 30 September 2024.

BACKGROUND

Clause 11.1 of Council’s Procedures for the Administration of the Code of Conduct states:

The Complaints Coordinator must arrange for the following statistics to be reported to the Council within 3 months of the end of September of each year:

a)         The total number of codes of conduct complaints made about Councillors and the General Manager under the code of conduct in the year to September (the reporting period).

b)         The number of codes of conduct complaints referred to a conduct reviewer during the reporting period.

c)         The number of codes of conduct complaints finalised by a conduct reviewer at the preliminary assessment stage and the outcome of those complaints.

d)         The number of codes of conduct complaints investigated by a conduct reviewer during the reporting period.

e)         Without identifying particular matters, the outcome of investigations completed under these procedures during the reporting period.

f)          The number of matters reviewed by the Office of Local Government (OLG) during the reporting period and, without identifying particular matters, the outcome of the reviews.

g)         The total cost of dealing with code of conduct complaints made about Councillors and the General Manager during the reporting period, including staff costs.

DISCUSSION

There were two (2) Code of Conduct complaints made against Councillors and/or the General Manager in the period from 1 October 2023 to 30 September 2024. Statistics in relation to this matter, as required by the Office of Local Government, are shown in the summary table below. In the previous year’s report to Council at its meeting on 13 December 2023 there was one outstanding complaint which had been referred to the OLG. The OLG advised on 19 February 2024 that it had determined to take no action on this complaint.

Total number of code of conduct complaints made about Councillors and the General Manager under the code of conduct in the year to September (the reporting period).

2

Number of code of conduct complaints referred to a conduct reviewer during the reporting period.

2

Number of code of conduct complaints finalised by a conduct reviewer at the preliminary assessment stage during the reporting period and the outcome of those complaints.

2

Outcome – Take no action.

1

Outcome – Resolve the complaint by alternative and appropriate strategies (informal discussion).

1


Number of code of conduct complaints investigated by a conduct reviewer during the reporting period.

0

Without identifying particular matters, the outcome of investigations completed under these procedures during the reporting period.

0

Number of matters reviewed by the Office of Local Government (OLG) during the reporting period and, without identifying particular matters, the outcome of the reviews.

0

Total cost of dealing with code of conduct complaints made about Councillors and the General Manager during the reporting period, including staff costs.

$1,100 (excl GST)

 

BUDGET

There are no budgetary implications associated with this Report.

POLICY

There are no policy implications associated with this Report.

CONCLUSION

Council’s consideration of this Report ensures the requirements of Council’s Procedures for the Administration of the Code of Conduct are met.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Risk and Audit Manager (and Council’s Complaints Coordinator) – Scott Allen, who can be contacted on 9847 6609.

 

 

 

 

 

 

Steven Head

General Manager

Office of the General Manager

 

 

 

 

 

Attachments:

There are no attachments for this report.

 

 

File Reference:           F2005/00156

Document Number:     D08850408


 

General Manager's Report No. GM57/24

Office of the General Manager

Date of Meeting: 13/11/2024

 

3        COUNCILLOR CONDUCT AND MEETING PRACTICES - A NEW FRAMEWORK   

 

 

EXECUTIVE SUMMARY

·              The Office of Local Government (OLG) published a discussion paper in September 2024 seeking feedback on a proposed new framework for managing councillor conduct and meeting practices.

·              The discussion paper proposes a complete rewrite and simplification of the Model Code of Conduct as well as a number of new pathways for addressing poor councillor behaviour.

·              The proposed reforms seek to streamline the code of conduct down to 2-3 pages similar to the State Parliamentary Code. The new system would see minor complaints about councillor misbehaviour dealt with by councillor’s peers and more serious matters relating to conflicts of interest examined by the OLG.

·              A draft submission to the OLG is being prepared for consideration and adoption by Council.

 

RECOMMENDATION

THAT the draft submission in response to the Discussion Paper – Councillor conduct and meeting practices, be adopted and referred to the Office of Local Government.

 


PURPOSE

The purpose of this Report is to provide an update on the current review by the Office of Local Government (OLG) of the councillor conduct and meeting practices framework, and to consider the making of a formal submission before the closing date of 15 November 2024.

BACKGROUND

The Office of Local Government (OLG) published a discussion paper in September 2024 seeking feedback on a proposed new framework for managing councillor conduct and meeting practices.

The discussion paper proposes a complete rewrite and simplification of the Model Code of Conduct as well as a number of new pathways for addressing poor councillor behaviour.

The related Media Release dated 5 September 2024 from the OLG states, in part, as follows:

“The NSW Government is proposing reforms to overhaul the broken Code of Conduct system for elected councillors, which is generating thousands of trivial complaints making it almost impossible to act swiftly and fairly on matters of genuine concern.

A discussion paper released today proposes a complete rewrite and simplification of the Model Code of Conduct as well as a number of new pathways for addressing poor councillor behaviour.

At over 100 pages long the current code of conduct framework is overly complex, distracts from robust democratic debate and is being increasingly weaponised for political reasons.

There were 4,289 code of conduct complaints lodged over the last three years alone, forcing councils to divert significant time and money from providing local services to resolve these complaints”.

It is important to acknowledge that the ongoing misbehaviour issues in the sector which are driving these proposed reforms are not attributed to matters arising from Hornsby Council.

DISCUSSION

At the time of publishing this business paper, Council Staff are continuing to develop the draft submission to the OLG, the final draft submission will be published and distributed via a Supplementary Late Item Memo prior to the meeting date.

BUDGET

There are no budgetary immediate implications associated with this Report.

POLICY

There are no policy implications associated with this Report. Policy considerations will be considered if a new Model Code of Conduct is published by the Office of Local Government.

CONCLUSION

While the proposed changes to the councillor conduct and meeting practices framework are high-level considerations at this point, there are some worthwhile contributions to be made by Council through a formal submission. It is recommended that once developed, the draft submission be adopted for referral to the OLG.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Risk & Audit Manager – Scott Allen - who can be contacted on 9847 6609

  

 

 

 

 

Steven Head

General Manager

Office of the General Manager

 

 

 

 

 

Attachments:

1.

OLG Discussion Paper - Councillor Conduct and Meeting Practices - Framwork

 

 

 

 

File Reference:           F2005/00156

Document Number:     D09004630

 


 

Director's Report No. CS44/24

Corporate Support Division

Date of Meeting: 13/11/2024

 

4        2023/24 AUDITED FINANCIAL STATEMENTS - PRESENTATION TO THE PUBLIC   

 

 

EXECUTIVE SUMMARY

·              In accordance with Sections 413, 415, 416 and 417 of the Local Government Act, Council must prepare and have audited its General Purpose Financial Statements within four months of the end of each financial year.

·              At the 23 October 2024 General Meeting, Council received and noted the 2023/24 Financial Statements and resolved to refer them for audit. Council also delegated authority to the General Manager to fix the date at which the Financial Statements and Auditor’s Report would be presented to the public.

·              Following receipt of the Auditor’s Report, the General Manager determined that the Financial Statements and Auditor’s Report would be presented to the public at the 13 November 2024 General Meeting.

·              Following formal presentation of the Financial Statements and Auditor's Reports to the public at the 13 November 2024 General Meeting, members of the public, in accordance with Section 420 of the Local Government Act, have seven days, i.e., until 20 November 2024, to make written submissions about the Statements.

·              Any submissions that are received must be referred by Council to the Auditor for their response.

 

RECOMMENDATION

THAT the 2023/24 General Purpose Financial Statements and associated Auditor's Report, as presented to the public on 13 November 2024, be adopted.

 


PURPOSE

The purpose of this Report is to allow Council's 2023/24 General Purpose Financial Statements and associated Auditor's Reports to be presented to the public in accordance with Section 419(1) of the Local Government Act.

BACKGROUND

In accordance with Sections 413, 415, 416 and 417 of the Local Government Act, Council must prepare and have audited its General Purpose Financial Statements within four months of the end of each financial year.

At the 23 October 2024 General Meeting, Council considered Directors Report No. CS43/24 – General Purpose Financial Reports – 2023/24 Financial Year – and resolved that:

1.         The 2023/24 General Purpose Financial Reports be received and noted and referred for audit.

2.         The Mayor and nominated Councillor be authorised to sign the Statutory Statements in connection with the 2023/24 Financial Reports.

3.         The 2023/24 Financial Reports be authorised for “presentation to the public” on receipt of the Auditor’s Report.

4.         The General Manager be delegated authority to fix the date of the General Meeting at which the 2023/24 Financial Reports and Auditor’s Report are formally “presented to the public”.

DISCUSSION

Following the 23 October 2024 General Meeting, the 2023/24 General Purpose Financial Statements were signed and referred to the Audit Office of New South Wales for audit. The Audit Office have subsequently issued an Auditor’s Report and have not identified any significant issues which require changes to the Financial Statements.

Following receipt of the Auditor's Report, the General Manager authorised, in accordance with Council’s resolution of 23 October 2024, that presentation of the Financial Statements and Auditor’s Report to the public would occur at the 13 November 2024 General Meeting.  As a result, public notices were placed on Council's website in accordance with Section 418 of the Act.

An electronic copy of the Financial Statements and Auditor's Reports is registered in Council’s electronic document management system and has also been placed on Council's website at https://www.hornsby.nsw.gov.au/council/forms-and-publications/publications/financial-statements

Following formal presentation of the Financial Statements and Auditor's Report to the public at the 13 November 2024 General Meeting, members of the public in accordance with Section 420 of the Local Government Act, have seven days, i.e., until 20 November 2024, to make submissions about the documents. Such submissions must be in writing and must be referred by Council to the Auditor for their response.

It is noted that Council's external auditor has indicated her availability to present on the Financial Statements, Auditor’s Report and Council's financial position at the 13 November 2024 General Meeting.

CONSULTATION

In the preparation of this Report there was consultation with Council’s External Auditor.

 

BUDGET

The net operating result in the Income Statement for 2023/24 is a deficit before capital items of -$5.8 million (2022/23: surplus of $17.6 million) and Council’s Operating Performance Ratio at 30 June 2024 is -2.08% which is below the benchmark set by the Office of Local Government of 0%.

The deficit before capital and corresponding Operating Performance Ratio has been caused by one-off items that are not related to the continuance of normal services:

·              An $8.4 million non-cash expense was recognised in 2023/24 to increase the provision for future works required as part of the environmental remediation of Foxglove Oval based on a revised cost estimate for this project. Expenses in future years will be offset from the provision that has been set aside, totalling $23.38 million and as noted in successive Quarterly Budget Review reports to Council.

·              Council received a $6.5 million grant from Transport for NSW in 2022/23 to repair damage to the local road network after significant storm events. This grant did not repeat in 2023/24 and as such the 2023/24 result has decreased.

·              During the year Council received notification from the Office of Local Government (OLG) that remaining grant funding for Westleigh Park would be required to be returned. The matter is currently ongoing with Council considering all options to retain the funds. In line with the requirements of accounting standards Council has processed a non-cash entry of $5.6 million to expense all life to date capital project costs incurred over prior years in the 2023/24 financial year.

In addition to the operating items identified above, income from capital grants for the year is negative because of a non-cash entry to reverse the grant income on hand for Westleigh Park of $36.3 million that has been requested to be returned. This entry was also required by accounting standards.

Were it not for one-off items Council would have achieved an operating surplus before capital items at 30 June 2024 and would have exceeded the benchmark for the Operating Performance Ratio set by the Office of Local Government.

POLICY

There are no policy implications associated with this Report.

CONCLUSION

The presentation of the 2023/24 Financial Statements and Auditor’s Report to the public at the 13 November 2024 General Meeting will ensure that the requirements of the Local Government Act have been met and that the public have an opportunity to make any relevant submissions to Council about the documents.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Chief Financial Officer – Duncan Chell, who can be contacted on 9847 6822.

 

 

 

 

 

 

Duncan Chell

Chief Financial Officer

Corporate Support Division

 

 

 

 

Glen Magus

Director - Corporate Support

Corporate Support Division

 

 

 

 

Attachments:

There are no attachments for this report.

 

 

File Reference:           F2023/00141

Document Number:     D08950916

 


 

Director's Report No. CS58/24

Corporate Support Division

Date of Meeting: 13/11/2024

 

5        INVESTMENTS AND BORROWINGS FOR 2024/2025 - STATUS FOR THE PERIOD ENDING 30 SEPTEMBER 2024   

 

 

EXECUTIVE SUMMARY

·              This Report provides details of Council’s investment performance for the period ending 30 September 2024 as well as the extent of its borrowings at the end of the same period.

·              Council invests funds that are not, for the time being, required for any other purpose. The investments must be made in accordance with relevant legislative requirements and Council’s policies and the Chief Financial Officer must report monthly to Council on the details of funds invested.

·              All of Council’s investments have been made in accordance with the requirements of the Local Government Act, the Local Government (General) Regulation and Council's Investment of Surplus Funds Policy and Investment Strategy.

·              In respect of Council’s cash and term deposit investments, the portfolio achieved an annualised return for September 2024 of 5.21% which includes a positive yield of 9.24% from TCorp Managed Funds. On a financial year to date basis the portfolio achieved an annualised return of 5.41% which includes a positive yield of 11.27% from TCorp Managed Funds.

 

RECOMMENDATION

THAT the contents of Director’s Report No. CS58/24 be received and noted.

 


PURPOSE

The purpose of this Report is to advise Council of funds invested in accordance with Section 625 of the Local Government Act; to provide details as required by Clause 212(1) of the Local Government (General) Regulation and Council's Investment of Surplus Funds Policy; and to advise on the extent of Council’s current borrowings.

BACKGROUND

Legislation requires that a report be submitted for Council’s consideration each month detailing Council's investments and borrowings and highlighting the monthly and year to date performance of the investments. Initial investments and reallocation of funds are made, where appropriate, after consultation with Council's financial investment adviser and fund managers.

DISCUSSION

Council invests funds which are not, for the time being, required for any other purpose. Such investment must be in accordance with relevant legislative requirements and Council Policies, and the Chief Financial Officer must report monthly to Council on the details of the funds invested.

Council’s investment performance for the month ending 30 September 2024 is detailed in the attached document. In summary, the portfolio achieved an annualised return for September 2024 of 5.21%. On a financial year to date basis the portfolio achieved an annualised return of 5.41% which includes a positive yield of 11.27% from TCorp Managed Funds.

Council is currently holding 7.40% of the total portfolio balance in a Westpac transaction account to meet increased liquidity requirements at the end of the financial year. This has resulted in a total investment holding of 40.64% with Westpac at the end of the month, which exceeds the policy limit of 40%. It is expected that this will be resolved in the coming months subject to meeting expected cash flow requirements.

The Borrowings Schedule as at 30 September 2024 is attached for Council’s information, noting that Council became debt free on 1 July 2023 with no loans entered into since. Therefore, the Borrowings Schedule only discloses future lease repayments for various items of plant and equipment.

BUDGET

Budgeted investment income for the year is $10,045,266 with an average budgeted monthly income of $837,106. Net investment income for the month ended 30 September 2024 was $1,272,116, which includes an unrealised gain of $176,478 from TCorp Managed Funds. 

Budgeted investment income year to date at 30 September 2024 was $2,511,318. Total investment income year to date at 30 September 2024 was $3,410,342 which includes a year-to-date unrealised net gain of $647,259 from TCorp Managed Funds.

Approximately 45.33% of the investment income received by Council relates to externally restricted funds (e.g., Stronger Communities Grant funding and Section 7.11 and Section 7.12 development contribution funds) and is required to be allocated to those funds. All investments have been made in accordance with the Local Government Act, the Local Government (General) Regulation and Council's Investment of Surplus Funds Policy and Investment Strategy.

The returns from TCorp Managed Funds can experience significant market volatility due to external economic conditions. It is noted that this product has a 7-year investment horizon and will, therefore, reflect marked to market valuations monthly. Advice provided by Council’s independent investment advisor, Prudential Investment Services, is to hold this investment for the 7-year timeframe originally planned. This is due to the anticipated net positive performance returns that will be gained over the long term for this investment.

CONCLUSION

The investment of Council funds and the extent of its borrowings as of 30 September 2024 is detailed in the documents attached to this Report. Council’s consideration of the Report and its attachments ensures that the relevant legislative requirements and Council protocols have been met in respect of those investments and borrowings.

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Chief Financial Officer – Duncan Chell who can be contacted on 9847 6822.

  

 

 

 

 

Duncan Chell

Chief Financial Officer

Corporate Support Division

 

 

 

 

Glen Magus

Director - Corporate Support

Corporate Support Division

 

 

 

 

Attachments:

1.

HSC Investments Summary Report September 2024

 

 

2.

HSC Borrowings Summary Report September 2024

 

 

 

 

File Reference:           F2004/06987-02

Document Number:     D08989968

 


 

Director's Report No. CS59/24

Corporate Support Division

Date of Meeting: 13/11/2024

 

6        2024/25 BUDGET - SEPTEMBER 2024 QUARTER REVIEW   

 

 

EXECUTIVE SUMMARY

·              Accountable organisations like Council review their budget and operational performance at least each quarter. In this regard, the September 2024 Quarter Review of the 2024/25 Operational Plan and Budget is attached.

·              The 2024/25 Original Budget forecast a surplus at 30 June 2025 of $1.983 million. This September 2024 Review recommends budget changes that net out to zero thus retaining the forecast surplus at 30 June 2025 of $1.983 million.

·              While no net budget changes have been made that affect the forecast surplus the Capital Works Program has been increased by $5.845 million in line with revised timelines for externally funded projects and grants awarded since the budget was adopted. 

·              This Report also provides Council with an update about the latest status of major projects that are of significant dollar value or of community interest.

 

RECOMMENDATION

THAT the September 2024 Quarter Review of the Operational Plan (Budget) for 2024/25 be received and noted.

 


PURPOSE

The purpose of this Report is to present for Council’s consideration the September 2024 Quarter Review of the 2024/25 Operational Plan.

BACKGROUND

On 12 June 2024, Council adopted its Delivery Program 2024-27 which includes the Operational Plan for 2024/25.  The Fees and Charges for 2024/25 were also adopted by Council on 12 June 2024. The Delivery Program and Operational Plan set out the manner in which Council intends to deliver services and measure performance.

In line with Office of Local Government requirements, a Quarterly Budget Review Statement (QBRS) must be submitted for Council’s consideration at the end of each quarter. The Statement must be based on key financial indicators and the estimate of income and expenditure set out in Council’s Operational Plan for the relevant year.

DISCUSSION

This Review includes the first quarter results for 2024/2025 comparing actual expenditure, income and funding sources for the first quarter against the Budget. The Net Operating and Capital Result after internal funding movements showed a positive variance of $4.2 million or approximately 8% of the consolidated year to date budget. This positive variance is largely the result of timing differences associated with project related works that are expected to be expended by 30 June 2024.

The 2024/25 Original Budget forecast a surplus at 30 June 2025 of $1.983 million. This September 2024 Review recommends budget changes that net out to zero thus retaining the forecast surplus at 30 June 2025 of $1.983 million. The predicted budget result is satisfactory in maintaining Council’s existing liquidity levels.

Significant budget changes in the September 2024 Quarter Review include:

·              $4.8 million reduction in financial assistance grant income after this amount was received early in the prior year and transferred to a restricted asset account for use in 2024/25. The reduction in grant income is offset by a transfer from the restricted asset account.

·              $286K reduction in consultancy expenditure for Hornsby Town Centre, funded from internal reserves. This amount was utilised in the prior year and the reduction is offset by a corresponding reduction to the transfer from reserves.

·              $1.1 million increase in operating grant income following confirmation of the 2024/25 Roads to Recovery allocation from the Federal Government. The additional income has been allocated to road related projects including Victory Street in Asquith and Beechwood Parade in Cherrybrook, as well as other road improvement related projects across the Shire.

·              Capital budget changes are provided as an attachment to this report. It is noted that these capital project budget changes are offset by restricted/external funding that had been set aside for this purpose.

Council committed to adopting a balanced budget each year as part of the justification for the Special Rate Variation, which includes achieving an end of year result that meets the financial performance measures set by the Office of Local Government. It is therefore recommended that the forecast surpluses be retained to enable Council to respond in a timely manner towards infrastructure assets that may fail, the impact of natural disasters on local service provision and clean-up costs, or cost shifting from other tiers of government, to respond to events of this nature without affecting the normal continuance of service provision throughout the year.

Capital Works Program

The 2024/25 Capital Works Program includes budget estimates for large projects, with work scheduled to take place over several financial years. For these projects, the completion of works planned in 2024/25 was dependent upon the delivery of earlier stages programmed for delivery in the 2023/24 financial year.

As noted in General Manager's Report GM16/24, Adoption of Council’s 2024-2027 Delivery Program and 2024/25 Operational Plan (Incorporating the Budget, Rating Structure and Fees and Charges) at the 12 June 2024 General Meeting, discussions were held with project managers in respect to the achievable delivery of draft capital projects in 2024/25 prior to the adoption of the budget. These discussions resulted in a number of changes to the draft 2024/25 capital works program after the exhibition period.

Advice has continued to be sought from project managers during the quarter in respect of the most recent timelines of multi-year projects based on final expenditure at 30 June 2024, as well as a number of grants awarded during the quarter. As a result, the attached Capital Works Program includes budget changes of $5.845 million that increase the capital budget from $69.7 million to $75.5 million at 30 September 2024.

The program will continue to be reviewed throughout the year to ensure it reflects the most recent timelines for projects.

Geelans Road, Arcadia

Council Officers have been monitoring the impact of increased heavy vehicle traffic on Geelans Road, Arcadia following an order by the NSW Environment Protection Agency for an adjoining property owner to remediate a site that has been subject to imported landfill.

Previously, potholes and minor damage caused by this increased heavy vehicle traffic have been repaired on a reactive basis. The condition of the road surface may experience further deterioration depending upon the number of additional heavy vehicle movements that would be required to complete site remediation works.

Council Officers are currently reviewing options to stabilise all or part of the road. Depending on the estimated cost of the preferred option project substitution from Council’s existing capital works program may be referred to Council for consideration.

Special Rate Variation – Strategic Initiatives

The budget includes $6.6 million to implement Special Rate Variation (SRV) initiatives identified in several strategic and technical documents endorsed by Council and desired by the community. The budget allocations align with Council’s original application for the SRV, which includes similar allocations over a ten-year period.

IPART’s approval came at the end of the previous financial year on 14 June 2023 with the first year SRV increase subsequently adopted by Council on 28 June 2023. Since then, Council Officers have developed an internal governance process to ensure that SRV funds can only be allocated in accordance with the program of works included in Council’s application. Further to this it is expected that the SRV detailed program of works is selected based on high priority projects linked to appropriate strategies and assessment criteria that are then endorsed by Council’s Executive Leadership Team (ELT).

The late approval of the SRV by IPART has meant that the project planning required to ensure the most efficient and effective use of the SRV funds has caused a delay to the delivery of projects in the first year that required unspent SRV funds of $5.6 million at 30 June 2024 to be restricted and carried forward to future years to ensure adherence with the conditions of IPART’s approval.

As noted in Director’s Report No. CS15/24 – 2023/24 Budget March 2024 Quarter Review (considered at the 8 May 2024 General Meeting), the General had requested Council Officers commence a project to fast track the preparation of prioritised work schedules for each Strategic Initiative with the aim of increasing the delivery rate of projects to the community next year and beyond.

This project has now been completed based on robust evidence-based data and relevant prioritisation criteria that informed the development of works schedules. These work schedules vary from 12 months to 4 years depending on the strategic initiative and have been endorsed by the Executive Leadership Team.

It should be noted that the strategic initiative – cycling and shared paths varies from the works schedule that had been adopted as part of the cycling and walking strategy. On this basis the amended works schedule will be considered by Council prior to any commencement.

A number of SRV projects endorsed over the quarter to highlight are:

·              $750K Bushland Asset Management – Regeneration of bushland reserves at 48 locations in line with Council’s Bushland Conservation Strategy 2021.

·              $695K Community Centre Access and Use Upgrades – To improve accessibility within community venues across the Local Government Area.

·              $1 million Renewal of Public Amenities – Including $450K for the renewal of public toilets at Berowra Waters (Dusthole Bay) and $400K at Upper McKell Park, Brooklyn, plus $150K for investigation, design and management costs to plan for projects over the ten-year term of the program.

·              $65K Track & Trail Maintenance – Maintenance of existing walking tracks in line with Council’s Bushland Conservation Strategy 2021.

·              $273K Track & Trail Upgrade for Accessibility – To upgrade tracks at trails at Hornsby Park, Salt Pan Reserve, Larool Creek and for Stage 2 upgrade works from Berowra to Cowan.

·              $250K Sports Grounds & Changing Rooms –  Investigation, design and management works including access audits, condition assessments and survey work to inform the program in future years.

·              $85K Playground Upgrades – Contribution to playground renewal projects at Charles Curtis Park, Fearnley Park, Moorfield Hills and Norman Avenue.

·              $1 million Stormwater Drainage Upgrades – Contribution to a number of drainage improvement and flood mitigation works identified in Council’s Draft Flood Risk Management Study and Plan.

BUDGET – MAJOR PROJECTS

Updates in respect to the progress of projects of significant dollar value or of community interest are noted below.

·              Foxglove Oval – As reported in successive Quarterly Review reports to Council the future cost of landfill remediation works at Foxglove Oval are forecast to exceed the balance on hand in Council’s Domestic Waste Management externally restricted asset reserve by $23.38 million based on a detailed cost estimate prepared by the relevant Director and Project Manager.

Following the preparation of this estimate and as noted in the March 2024 Quarter Review $23.38 million has been set aside from Council’s Capital Projects and Restricted Working Funds internally restricted asset account to fund an internal loan to Domestic Waste for this purpose, with all costs incurred to be recovered through future increases in Domestic Waste Annual Charges.

Whilst Council remains in a stable financial position a reduction in cash of this size has weakened Council’s liquidity position until the loan can be repaid. This places greater emphasis on the need for prudent fiscal management over future years including the continuation of the adoption of a balanced budget each year and a focus on mitigating the risk of cost escalations from major projects through the allocation of adequate contingencies, project staging, the inclusion of termination clauses within contracts and the establishment of project governance committees for each major project in line with Council’s previously established Capital Governance framework. Council’s adopted 2024/25 – 2033/34 Long Term Financial Plan includes a recommendation for remaining cash reserves to be maintained at existing levels with any funding transferred to respond to other immediate financial challenges or unforeseen events to be repaid to ensure Council’s long term financial sustainability. 

A separate report that provided a detailed overview of the history of the project to date as well as the forecast program of works was referred to Council at the General Meeting held on 10 July 2024 in Directors Report CE7/24, Foxglove Oval Remediation Works Update.

Year to date expenditure to 30 September 2024 is $461K and a plan to repay the amount transferred from Council’s internal reserves through future increases in Domestic Waste Annual Charges will be developed as the project progresses.

·              Hornsby Park – from Quarry to Park – The rehabilitation of the old quarry and surrounding lands into open space for recreation purposes is the largest construction project undertaken by Hornsby Shire Council.

As noted in Deputy General Manager’s Report No. IM2/21 – Master Plan for Hornsby and Westleigh Parks (considered at the 14 April 2021 General Meeting), the total estimated cost of the facilities canvassed in the Master Plan is significantly above the total level of funding available. Therefore, a reduction in scope compared to the Master Plan or staging the project over an extended period will be required unless additional funding can be identified.

This large-scale project is being part-funded by the NSW Government with $50 million of funding provided by the NSW Stronger Communities grant scheme and 100% of the grant (plus around $5.5 million of interest earned to date) has been spent or committed by way of tendered works.

Further funding of $28 million is available from development contributions, subject to the priority allocated to projects in accordance with development contributions received.

A budget of approximately $34 million is allocated for bulk earthworks and site rehabilitation to create the landform for the site and address site wide stability issues. Works for this stage of the project are well progressed and are forecast to be completed in late 2024.

An allocation of $5 million of the project budget has been provided for the regeneration of the vegetation communities on the site, with this funding set aside in an internal restricted asset account to cover the cost of ongoing vegetation management into the future.

In accordance with resolutions at the 8 March 2023 General Meeting (in Deputy General Manager’s Report No. IM2/23 – Hornsby Park) a Review of Environmental Factors was compiled, exhibited and approved.

In late 2023, contracts were signed for the amenities building upgrade, the Crusher Plant Platform and the Enabling Services works with a contract for the Southern Lookout signed in early 2024.  A further contract for the Western Lookout was signed in April 2024, after a tender process had been completed.

The total life to date expenditure on the project to 30 September 2024 (excluding the acquisition costs of $25.1 million), including vegetation communities is $51.8 million. Year to date expenditure to 30 September 2024 is $4.9 million compared to a year-to-date budget of $3.3 million and full year budget of $13.3 million.

At the 14 April 2021 General Meeting (in Deputy General Manager’s Report No. IM2/21 – Master Plan for Hornsby and Westleigh Parks) Council resolved to acknowledge that a financially responsible approach requires the project to be staged commensurate with available funding. $78 million of funding (plus interest) is available comprising grant funds of $50 million and a further $28 million from development contributions. The Long-Term Financial Plan and SRV (approved by IPART) did not provide any further capital funding for the project over the next 10 years. It would therefore be financially prudent for expenditure to be contained within the amount of external funding available. Modelling in previous versions of Council’s Long-Term Financial Plan indicated at the time that exceeding the level of external funding available would reduce Council’s long term financial sustainability. 

The redevelopment of the site is Council’s largest project and creates a significant financial risk because of its size compared to Council’s overall budget. To protect Council from cost escalations it will be financially prudent to follow a number of mitigation strategies as the redevelopment of the site progresses:

To protect Council from cost escalations it will be financially prudent to follow a number of mitigation strategies as the redevelopment of the site progresses:

o     The allocation of a 30% contingency for all components of the project, noting ongoing challenges in the external environment, including inflationary price increases, and supply side shortages for materials and labour, as well as recent severe weather events and natural disasters in the Hornsby LGA.

o     Staging the scope of works over time is recommended, by splitting the project into components with separate budgets. Some components would start only after others have been completed, with the budget available for later components being adjusted based on remaining budget available at the time, with appropriate contingency provisions. If components do exceed budget allocations this is flagged early for discussion with Council’s Chief Financial Officer to assess appropriate financial action.

o     Contracts to include suitable termination clauses to provide the option of ceasing work if costs escalate.

o     Provision of information as appropriate for consideration by Executive Leadership Team members in respect to approving when work on components can commence.

·              Westleigh Park Development – A Master Plan and Plan of Management for the site were adopted at the 14 June 2023 General Meeting. At the 13 September 2023 General Meeting Council provided owners consent for the lodgement of a Development Application which was subsequently lodged on 22 September 2023.

The Development Application (DA/975/2023) is currently being independently assessed by a Town Planning consultancy and a report will be submitted to the Sydney North Planning Panel for determination at the end of 2024 or early 2025.

$40 million of funding was provided in June 2018 from the NSW Government’s Stronger Communities Fund that was subsequently allocated to the delivery of stage one. As noted in Deputy General Manager’s Report No. IM2/21 – Master Plan for Hornsby and Westleigh Parks (considered at the 14 April 2021 General Meeting), the total estimated cost of all facilities and stages canvassed in the Master Plan is significantly above the total level of funding available.

During the 2023/24 financial year Council received notification from the Office of Local Government that remaining grant funding for this project in the order of $36 million (less interest earned to date) would be required to be returned. Council is currently assessing its options in respect to this notification.

As noted in the Financial Risks section of Council’s adopted 2024/25 – 2033/34 Long Term Financial Plan, the notification received jeopardises the future of the project as insufficient available financial capacity is forecast over the ten-year term of the Plan to replace funding of this magnitude.

The total life to date expenditure to 30 September 2024 on this project (excluding the acquisition costs of $21 million funded by development contributions) is $6.354 million. Financial year to date expenditure at 30 September 2024 is $169K that has been funded from a small allocation of development contributions available for this project instead of the grant.  

The redevelopment of the site is Council’s second largest project; therefore, it would be financially prudent to follow the same mitigation strategies as noted for Hornsby Park.

·              Public Domain - Council previously identified the Pacific Highway corridor between Asquith and Mt Colah as an area to improve streetscape amenity.

A budget of $9.3M was set aside for these works, funded from development contributions.

Upgrade works on Peats Ferry Road, Asquith between Hookhams Corner and Wattle Street have been completed.

The corridor from Asquith to Mt Colah will be undertaken in two stages. Stage one includes works between Amor Street and Yirra Road, and stage two is from Yirra Road to Parklands Avenue.

Civil design has been completed for Stage 1 and project works have been tendered for construction and are anticipated to complete in January 2025, weather permitting. The estimated cost of stage 1 is approximately $2 million.

Design for Stage 2 from Yirra Road to Parklands Avenue will commence in future years as development contribution funding becomes available. This corridor aims to provide improvements including wider footpaths and landscaping along the Pacific Highway and the construction of pedestrian refuges at selected locations, with the agreement of TfNSW.

The total life to date expenditure to 30 September 2024 on this project is $4.786 million out of a budget of $9.3 million. Year to date expenditure at 30 September 2024 is $14K compared to a year to date budget of $600K, noting that the next stage of construction will progress over the coming months.

·              Galston Public Domain – The draft Galston Village Public Domain Plan (PDP) was endorsed by Council for Public Exhibition in February 2024.

At its General Meeting on 10 July 2024 following the exhibition and community engagement process from 29 April to 2 June 2024, a summary of outcomes was provided and the PDP was endorsed by Council for the next stage of detailed design and documentation towards construction (Report No. IM6/24).

The project has commenced design refinements in facilitating design development and documentation which includes elements of site and road surveys, drainage/WSUD design review, geotechnical advice and Road Safety Audit. A speed Zone review for Galston Road is also being undertaken recommending a lowering of vehicle speeds within the Galston Village to 40km/h to improve pedestrian and cycling safety as part of the broader Galston Village Public Domain Plan.

As a key component to the success of the PDP, Council continues to liaise with Transport for New South Wales (TfNSW) as the approval authority for works impacting the State Road (Galston Road) throughout the design development and as documentation progresses. Further stakeholder engagement and workshop activities continue and are planned with landholders, business holders and the community, which will assist and guide final designs being documented for Construction Tender anticipated in early 2025.

The total life to date expenditure to 30 September 2024 on this project is $150K out of a budget of $7.1 million from an internally restricted asset account set aside using budget surpluses achieved in prior financial years. Year to date expenditure at 30 September 2024 is $39K compared to a year to date budget of $1.125 million, noting that the attached Revised Capital Program includes a budget change to revise the full year budget down by $3.7 million from $4.5 million to $800K in line with a revised timeline for this multi-year project.

BUDGET

This Report provides the September 2024 Quarter Review of the 2024/25 Operational Plan (Budget), which, if adopted, will achieve a forecast surplus at 30 June 2025 of $1.983 million. The predicted Budget result at 30 June 2025 is satisfactory in maintaining financial benchmark indicators in respect to liquidity and it would be financially prudent to continue to hold the surplus to respond to unforeseen budget shocks that occur over the course of the year.

POLICY

There are no policy implications associated with this Report.

CONCLUSION

Council’s consideration of this Report ensures that relevant statutory requirements have been met.

Council remains in a stable position to deliver local services and facilities in a financially responsible manner while noting that the funds set aside for the remediation of Foxglove Oval have materially depleted liquidity levels. Because of this, Council’s adopted 2024/25 – 2033/34 Long Term Financial Plan includes a recommendation for remaining cash reserves to be maintained at existing levels with any funding transferred to respond to other immediate financial challenges or unforeseen events to be repaid to ensure Council’s long term financial sustainability. 

RESPONSIBLE OFFICER

The officer responsible for the preparation of this Report is the Chief Financial Officer – Duncan Chell – who can be contacted on 9847 6822.

 

 

 

 

 

 

Duncan Chell

Chief Financial Officer

Corporate Support Division

 

 

 

 

Glen Magus

Director - Corporate Support

Corporate Support Division

 

 

 

 

Attachments:

1.

30 September 2024 Quarterly Budget Review Statement

 

 

2.

Revised Capital Program

 

 

 

 

File Reference:           F2023/00012

Document Number:     D08997878

 


 

Mayor's Note No. MN8/24

Date of Meeting: 13/11/2024

 

8        MAYORS NOTES 01 OCTOBER TO 31 OCTOBER 2024   

 

 

Note:  These are the functions that the Mayor, or his representative, has attended in addition to the normal Council Meetings, Workshops, Mayoral Interviews and other Council Committee Meetings.

 

Wednesday 2nd October 2024 – On behalf of the Mayor, the General Manager hosted two Citizenship Ceremonies at the Administration Building at 296 Peats Ferry Road, Hornsby.

Sunday 6th October 2024 – The Mayor attended the Yesteryear at Fagan Park and Garden Gala Day at Fagan park.

Saturday 19th October 2024 – On behalf of the Mayor, Councillor McSweeney attended the Beecroft Football Club’s 2024 Presentation Night and Annual General Meeting at the Epping Club.

Sunday 20th October 2024 – The Mayor attended the Opening of Inala Fair at Inala’s head office in Cherrybrook.

Friday 25th October 2024 – The Mayor attended the Hornsby Art Prize award ceremony and opening night at the Wallarobba Arts and Cultural Centre, Hornsby.

Saturday 26th October 2024 – The Mayor attended the Katrina Ceremony at Cherrybrook Cultural and Community Centre, Cherrybrook.

Wednesday 30th October 2024 – The Mayor attended the Thea Slatyer Cup for High School Girls in North Turramurra.

 

 

  

File Reference:           F2004/07053-001

Document Number:     D08996638