Along with 23 draft document changes
Federation Council’s Delivery Program 2022-2026 and Operational Plan 2024-25 (including Annual Budget 2024-2025 comprising the 17% rate rise) now includes 23 changes to draft papers from its May meeting – as outlined at the foot of this story.
The changes occurred after extensive consultation with the public throughout the Federation Council area.
Council adopted all of its documentation moving forward at its monthly meeting on June 26.
Throughout May, council hosted 36 hours of face-to-face engagement with the communities in Corowa, Howlong, Urana and Mulwala. These sessions included a series of pop-up sessions, public meetings and drop-in sessions.
Council received 13 written and/or online submissions during the engagement period of Future Federation 2024-2025.
Contained within the online and paper-based submission form, residents and ratepayers were provided with the opportunity to rate important priorities for 2024-2025, based on previous priority areas identified by the community in 2023.
With the 23 changes and consequential additions to council’s documentation, the net impact on the council’s general fund is $114,000 ($44,000 operating and $70,000 capital) which will be funded from unrestricted cash. The net impact on council’s water fund and sewer fund is positive.
Council’s adopted Revenue Policy for the financial year 2024/25 includes the following amendments:
•a base rate of $404 per assessable property (current base rate 23/24 is $425) with the balance collected through the ad valorem as exhibited
•amended cemetery fees and charges to align with the recently adopted Cemeteries Policy
•GST added to the new Interment Service Levy charge
•a 3.8% March 2024 CPI increase to all applicable fees and charges.
“The proposed ordinary rate revenue for the 2024/25 financial year includes a 17% increase to ordinary rates, which is in line with the Independent Pricing and Regulatory Tribunal (IPART) approval for a temporary increase for the 2024/25 financial year,” Federation Council’s General Manager Adrian Butler said.
“In adopting the revenue policy, council determines the rating structure for the coming financial year. The rating system determines how a council will raise money from properties within the council area. It does not influence the total amount of money to be raised, only the share of revenue contributed by each property.
“The impact on pensioner concession property owners has also been included to assist with understanding the impact on this more financially vulnerable segment of the community.”
Mr Butler said council’s deliberations centred around options to mitigate capacity to pay, current cost of living pressures, council’s own financial sustainability, land valuation movements and current rate levels.
Among changes not included by council after considering submissions, which will disappoint residents, relates to community grants of up to $3,000 for volunteer community groups and at outlay of $30,000 every six months by council, equalling $60,000 a year and seen by council as saving $600,000 over 10 years.
This concern was raised during the consultative process, including at a public meeting in Mulwala which had one of the biggest attendances (20) of ratepayers.
In submission 10, referring to the Savernake Hall committee volunteers, it was stated the hall is the venue for various functions and that volunteers undertake regular maintenance and general upkeep of the council and village asset.
“Staff are recommending that community grants not be reinstated at this time due to council’s current financial position. Staff will continue to share other state and federal grant funding opportunities to assist community groups in their fundraising efforts,” was council’s stated explanation.
Mayor Pat Bourke said council’s staff and councillors have spent a lot of time preparing the required documentation going forward, attending community sessions and considering “any advice available to us, looking for the best outcomes for Federation ratepayers”.
“We’re united as a group of councillors, that this is the way forward for Federation Council,” he said.
“These are difficult times and we are trying to deliver the best way we can, with what finances we have and what finances we expect.”
At Tuesday’s meeting, Cr. Rowena Black expressed her congratulations, “To staff and senior staff for making themselves available to the community and to allow people to come and talk to them”.
“It was a great improvement on previous,” she added. Cr. Aaron Nichols commented about “how well done the community sessions were”.
“Two years ago, they were thin at best – it was great stuff to see, “he said.
The mayor concluded: “I’m sure we all think the same.”
The 23 changes to council’s documentation are as follows:
1.Independent Review recommendations
For applicable actions relevant to the Independent Peer Reviewed Business Case Study of Federation Council - University of Newcastle/Professor Joseph Drew add the recommendations to the strategy column - this will enable the capturing and reporting of the recommendations and their implementation.
2. Local Roads & Community Infrastructure Program
List discrete projects funded under the Local Roads & Community Infrastructure Program - ensure transparency around projects and their funding allocation.
3. Ball Park Caravan Park
Add new action code – 2.4.4 - conduct a feasibility study and market approach for operation of Ball Park Caravan Park as a public private partnership under a long-term lease (subject to Minister approval).
A report was considered at council’s April 2024 meeting regarding the future management options for Ball Park Caravan Park and Urana Caravan Park. This amendment will increase transparency of action being undertaken by council.
4. Hardship Policy
Review the Hardship Policy to be more responsive and practical - this will increase transparency of action being undertaken by council.
5. Service reviews - Implement a program of service reviews that demonstrates the commitment to continuous improvement and stakeholder engagement; ensure appropriate budget allocation can be made to areas of priority.
6. Project Management Framework
Implement a project management framework that results in more effective solutions and better community outcomes; provide further information to the community on planning of new projects.
7. Road Condition Assessment
Undertake a condition assessment of council local roads; add action to capture and report on the review of the condition of rural roads.
8. Productivity Improvements and Cost Containment Strategies
The IP&R documents or the council’s application must explain and quantify the productivity improvements and cost containment strategies the council has realised in past years and plans to realise over the proposed special variation period. Councils should present their productivity improvements and cost containment strategies in the context of ongoing efficiency measures and indicate if the estimated financial impact of the ongoing efficiency measures have been incorporated in the council’s Long Term Financial Plan.
9. Special Rate Variation
Amend SV to be presented in two decimal points. Independent Pricing and Regulatory Tribunal (IPART) NSW – 2024-25 Guidance booklet for Councils – Special variations: How to prepare and apply (pg. 10).
10. Plant usage
Expenditure increase of $18,750 across the Corowa, Howlong, Mulwala and northern areas street sweeping service and an income increase of $18,750 to Plant Recovery.
Following a review of the street sweeper and garbage truck usage, street sweeping and cleaning budgets to be adjusted to be more reflective of plant hours utilised.
11. Plant usage
Expenditure increase of $249,750 across the Corowa, Howlong, Mulwala and northern areas street sweeping and cleaning services and an income increase of $249,750 to Plant Recovery.
Following a review of the street sweeper and garbage truck usage and hourly charge out rates, street sweeping and cleaning budgets to be adjusted to be more reflective of the actual cost per plant hour.
12. Planning Service Review
Operating expenditure increase of $50,000 to fund planning service review; ensure appropriate budget allocation is made to implement decision of council.
13. Additional planning resources
Capital expenditure increase of $70,000 to fund additional pool vehicles associated with additional planning staff; ensure appropriate budget allocation is made to implement decision of council.
14. Additional planning resources
Operating expenditure increase of $14,000 to fund additional pool vehicles; ensure appropriate budget allocation is made to implement decision of council.
15. Fuel budget
Operating expenditure increase of $200,000 to fund increased fuel price estimates
Review of estimates of expected fuel prices conducted and recommend increase to budget allocation to ensure continued service delivery.
16. Interest income budget
Interest income increase of $220,000 in General Fund, $485,000 in Water Fund and $255,000 in
Sewer Fund to recognize anticipated interest rates and greater expected cash holdings - ensure appropriate budget estimates are used in developing income budgets.
17. Budget summary
Add summary table of budget by service - provide further information to the community on council’s financial performance.
18. Key projects
Update list of projects for above changes (where relevant).
19. Financial budget narration
Update narrations to make clearer how rates, annual charges, user charges and fees apply - provide further information to the community on council’s financial performance.
20. Financial budget narration
Update document where relevant to reflect final rating strategy adopted by council - ensure document reflects decisions of council.
21. Financial budget narration
Update narrations to make clearer the principles underpinning operating expenditure - provide further information to the community on council’s financial performance.
22. Financial budget narration
Update document where relevant to reflect final budget decisions of council - ensure document reflects decisions of council.
23. Whole of document
Update narrative or diagrams in document where relevant to reflect final decision of council.