Agenda of Ordinary Council Meeting - Tuesday, 25 March 2025

Ordinary Council Meeting Business Agenda

25 March 2025

9 Written Reports from Delegates

9.1 Mayor's Activity Report for February 2025

Department:	General Manager’s Office
Prepared By:	Executive Assistant
Authorised By:	Mayor
LINKAGE TO INTEGRATED PLANNING AND REPORTING FRAMEWORK
Goal:	4. We are an independent shire and well-governed community
Strategy:	4.1. Informed and collaborative leadership in our community

Summary

The Mayor’s Activity Report outlines activities conducted during the month of February 2025.

Recommendation

That Council Receives the Mayor’s Activity report for February 2025.

Report

DATE	COMMITTEE/MEETING/EVENT	LOCATION
3 Feb 2025	Mayor & GM Catch up Meeting	Uralla
4 Feb 2025	Induction Information Sessions	Uralla
10 Feb 2025	Mayor & GM Catch up Meeting	Uralla
11 Feb 2025	New England REZ Steering Committee Meeting	Uralla
11 Feb 2025	Squadron Energy Meeting	Uralla
11 Feb 2025	Information Session - NBN – briefing - ORIGIN – Presenting on projects for : · Northern Tablelands Wind Farm · Salisbury Solar Farm · Ruby Hills Wind Farm - ACEN – Progress on: · NES1 Operating site · NE BESS in construction · NES2 pre-construction planning · Deeargee development planning · General update on our social investment program, partnerships, scholarships and donations - ACE POWER · Plan progressing on Hillview Energy Hub - ENERGY Co · EnergyCo’s Transmission Lines.	Uralla
12 Feb 2025	2AD Interview	Online
13 Feb 2025	Meeting GM Review	Uralla
17 Feb 2025	Engagement Session – Chancellor UNE	Armidale UNE
17 Feb 2025	Mayor & GM Catch up Meeting	Uralla
18 Feb 2025	Interagency Meeting	Bolt Inn Uralla
18 Feb 2025	Information Session - Strategic Housing Strategy – RemPlan	Uralla
19 Feb 2025	BFMC Meeting	RFS Armidale
21 Feb 2025	New England Solar Farm Battery Hub SOD turned Ceremony	NE Solar Farm Uralla
24 Feb 2025	Mayor & GM Catch up Meeting	Uralla
25 Feb 2025	Long Service Awards	Uralla
25 Feb 2025	Citizenship Ceremony	Uralla
25 Feb 2025	Council Ordinary Meeting	Uralla
26 Feb 2025	2AD Interview	Online
26 Feb 2025	Brendan Moylan MP	Uralla
27 Feb 2025	New England Solar SIP Presentation	Uralla

Ordinary Council Meeting Business Agenda

25 March 2025

14 Reports to Council

14.1 Councillor Representative Report - Bundarra Community Meeting 12 March 2025

Department:	General Manager’s Office
Prepared By:	Councillor
Authorised By:	Director Infrastructure & Development
Reference:	UINT/25/4728
Attachments:	1. EOI - Peter Gregory ⇩ 2. EOI - Rodney Hargrave ⇩ 3. EOI - Jennifer Dezius ⇩ 4. EOI - Jeffery Dezius ⇩ 5. EOI - Kylie Jarman ⇩ 6. EOI - Theresa Layton ⇩ 7. EOI - John Layton ⇩ 8. EOI - Shannon Lee Johnson ⇩ 9. EOI - Jackie Stibbard ⇩ 10. EOI - Lindsay Groth ⇩ 11. EOI - Rebecca McLean ⇩ 12. EOI - Matthew Monk ⇩ 13. EOI - Angela Iskov ⇩ 14. Invitation / Agenda - Bundarra Community Meeting - Bundarra School of Arts Hall & Community Consultative s355 Committee - 12 March 2025 ⇩ 15. Notes - 2nd Bundarra Community Information Session Meeting - 12 March 2025 ⇩ 16. Terms of Reference - Bundarra School of Arts Hall and Community Consultative s355 Committee ⇩
LINKAGE TO INTEGRATED PLANNING AND REPORTING FRAMEWORK
Goal:	1. We have an accessible inclusive and sustainable community 4. We are an independent shire and well-governed community
Strategy:	1.4. Access to and equity of services 4.1. Informed and collaborative leadership in our community 4.3. An efficient and effective independent local government

Summary

This report is an update regarding Council’s continuing exploration of the opportunities to re-establish a Section 355 Committee in Bundarra. The first community meeting was previously described in the Councillor Representative Report to the February 2025 Ordinary Meeting of Council.

Council’s previously appointed Bundarra School of Arts Community Consultative 355 Committee ceased its tenure on 14 December 2024. In consideration of the future, Council determined that it would pursue the reestablishment of the Committee and appointed three Councillor Representatives for that purpose.

To that end a second community meeting was arranged with the broader Bundarra community on Wednesday 12 March 2025 to further explore options for the reinstatement of a Bundarra 355 Committee.

The most recent meeting was again well attended with three councillor representatives and the Director Infrastructure and Development along with further new participants from the community. The number of interested participants has increased since the last meeting and 11 Expressions of Interest for Membership have been received.

This report provides feedback from the community meeting held on 12 March 2025 and recommends that Council reestablishes the Bundarra 355 Committee and appoints community representatives in accordance with the Expressions of Interest received.

Recommendation

That Council:

1. Establish a Bundarra Committee utilising the provisions of Section 355 of the Local Government Act 1993; and,

2. Adopt an initial Terms of Reference for the new Committee comprising the existing Bundarra School of Arts 355 Committee Terms of Reference as attached to this report; and,

3. Note that the first order of business for the new Committee will be to review the initial Terms of Reference and recommend changes, if required; and,

4. Appoint the following people, who have applied through an EOI process, as members of the Bundarra 355 Committee:

(1) Peter Gregory

(2) Rodney Hargrave

(3) Jennifer Dezius

(4) Jeffrey Dezius

(5) Kylie Jarman

(6) Theresa Layton

(7) John Layton

(8) Shannon Lee Johnson

(9) Jackie Stibbard

(10) Lindsay Groth

(11) Rebecca McLean

(12) Matthew Monk

(13) Angela Iskov

Report

A second Bundarra community meeting was held at the Bundarra School of Arts Hall on Wednesday 12 March 2025.

The purpose of the two meetings recently held in February and March was to explore the potential reinstatement of the original Bundarra 335 Committee following its disbandment three months following the last council elections.

The Meeting Invitation / Agenda, meeting notes, matters discussed, and issues raised in the most recent meeting are elaborated in the attachment to this report entitled ‘Councillor Representative Report’.

Conclusion

The two meetings with Bundarra community have been very well attended by local participants. Significant councillor effort has resulted in 13 Expressions of Interest from motivated community members to form a permanent 355 Committee.

Council Implications

Community Engagement/Communication

Community will be informed of Council’s decision and future intentions via the newly compiled Bundarra Committee Email Distribution List. An inaugural meeting of a new Bundarra 355 Committee can be arranged, assuming Council’s consent for the recommendation in this report, for Wednesday 16 April 2025.

Policy and Regulation

Previous S355 Bundarra School of Arts Community Consultative Committee Terms of Reference 2022

Local Government Act 1993; section 355

Financial/Long Term Financial Plan

N/A

Asset Management/Asset Management Strategy

N/A

Workforce/Workforce Management Strategy

N/A

Legal and Risk Management

N/A

Performance Measures

N/A

Project Management

Infrastructure & Development Directorate

Ordinary Council Meeting Business Agenda

25 March 2025

14.2 Council Provision of In Kind Support Providing Water Cart to the Bundarra Pony Club and the Bundarra & District Campdraft Association,

Department:	Infrastructure & Development
Prepared By:	Group Manager Infrastructure Services
Authorised By:	Director Infrastructure & Development
Reference:	UINT/25/3064
Attachments:	1. Request for Water Truck from Bundarra Pony Club ⇩ 2. Bundarra Pony Club - Certificate of Currency ⇩ 3. Request for Water Truck from Bundarra Campdraft ⇩ 4. Bundarra and District Campdraft Club Currency Certificate ⇩ 5. Request for Water Truck - NE Drumm Runners ⇩ 6. NE Drum Runners - Certificate of Currency ⇩ 7. 10.12/24 Council Provision of In Kind Support to NE Drum Runners ⇩
LINKAGE TO INTEGRATED PLANNING AND REPORTING FRAMEWORK
Goal:	2. We drive the economy to support prosperity 4. We are an independent shire and well-governed community 1. We have an accessible inclusive and sustainable community
Strategy:	2.1. An attractive environment for the business sector 4.3. An efficient and effective independent local government 1.1. A growing community with an active volunteer base and participation in community events 1.2. A safe, active and healthy shire

Summary

Council has been approached by the Bundarra Pony Club, Bundarra & District Campdraft Association, and previously, the New England Drum Runners, who are all not-for-profit clubs based at Bundarra, to provide in-kind support to its planned events.

The specific form of the requested in-kind support is the periodic use of Council’s water truck for the purpose of dust suppression at the clubs’ planned events for 2025 & 2026.

Council’s regular operational resource, or another suitably trained and licensed operator, would operate the truck on the occasions engaged as a volunteer member of the organisation and would be covered by the organisation’s insurance.

It is noted that the New England Drum Runners has been granted permission under Resolution 10.12/24 (refer Attachment 07). This group has been included in this report for ease of reference for future event dates.

Recommendation

That Council:

1. Provides the requested in-kind support in the form of periodic access and use of Council’s water truck for the Bundarra Pony Club and Bundarra and District Campdraft Association events to be held in Bundarra during the 2025 calendar year and in January 2026 on the basis that:

a. Council’s Water Truck is operated only by a suitably licensed and trained resource who is a volunteer for the event organisers; and

b. The Bundarra Pony Club and the Bundarra & District Campdraft Association each maintain their Public Liability insurance coverage of $20,000,000.

2. Notes that approval has previously been provided for similar support for the New England Drum Runners.

3. The General Manager is delegated to approve any further similar requests relating to in-kind support utilising the Water Truck.

Report

Bundarra Pony Club

The Bundarra Pony Club is affiliated with Pony Club NSW. The Bundarra Pony Club has requested that Council consider whether it is able to provide in-kind support through supply of a Water Truck for events which will be managed by the Bundarra Pony Club during the 2025 calendar year and for the January 2026 event (refer Attachment 01).

Event dates are:

· 12 Oct 2025

· 19-20 Oct 2025

· 9-10-11 January 2026

The Bundarra Pony Club holds insurance coverage for Public Liability claims (refer to Attachment -2). Currency Certification will be sought for the January 2026 event.

Bundarra & District Campdraft Association

The Bundarra & District Campdraft Association are affiliated with Australian Bushmen's Campdraft and Rodeo Association (ABCRA). The Bundarra Campdraft has requested that Council consider whether it is able to provide in-kind support through supply of a Water Truck for Bundarra based events which will be managed by the Bundarra Bundarra & District Campdraft Association during the 2025 calendar year event.

Event dates are:

· 25-26 Apr 2025

The Bundarra & District Campdraft Association hold insurance coverage for the Public Liability claims (refer Attachment 04).

New England Drum Runners (previously resolved)

Event dates are:

· 25-26 January 2025

· 1-2 March 2025

· 29-30 March 2025

· 18-20 March 2025

· 31 May to 1 June 2025

· 16-17 August 2025

· 27-28 September 2025

· 26-27 October 2025

· 29-30 November 2025

Council currently provides “in-kind” support to several other existing worthy activations and local events including, for example, schools-based sporting and swimming activities, the annual Seasons of New England and Thunderbolts Festival, the most recent Winter Solstice and Uralla Christmas celebrations, and the annual Fairy Festival.

The principles Council has considered when previously deciding to provide or not to provide such support can generally be described as follows: to what extent will the activation support or sustain healthy outcomes (sport-focussed events for example); build community connections; build local business; or increase local amenity; social celebration; or increased social amenity.

A secondary but important consideration is also the extent to which the activation or event is actually driven by, and organised by, the community itself.

In this instance it is recommended that the proposed in-kind support would enable the Bundarra Pony Club and the Bundarra & District Campdraft Association to deliver, under their own resources and effort, a series of events in Bundarra which meet or substantially progress many of the social and societal principles sought by Council and its community.

Conclusion

This report recommends that Council approve the provision of limited in-kind Council support requested by Bundarra Pony Club and Bundarra & District Campdraft Association, ensuring that volunteer operators are suitably trained and licensed, and allowing the General Manager to approve similar such requests under their delegation.

Council Implications

Community Engagement/Communication

The recommendation would provide a substantive signal of increased engagement between the Bundarra community and its Council.

Policy and Regulation

Nil.

Financial/Long Term Financial Plan

Nil for staff, inconsequential for plant.

Asset Management/Asset Management Strategy

Nil.

Workforce/Workforce Management Strategy

A single Council resource may act in the capacity as a volunteer to the Bundarra Pony Club and Bundarra & District Campdraft Association, but in their own time and out of hours.

Legal and Risk Management

Controlled. Refer to the risk requirements as listed in the recommendation.

Performance Measures

Nil.

Project Management

Director Infrastructure and Development.

Ordinary Council Meeting Business Agenda

25 March 2025

14.3 Draft Asset Management Policy 2025

Department:	Infrastructure & Development
Prepared By:	Manager Assets
Authorised By:	Director Infrastructure & Development
Reference:	UINT/25/3443
Attachments:	1. Draft Asset Management Policy Review - Tracked 2025 ⇩ 2. Draft Asset Management Policy 2025 ⇩
LINKAGE TO INTEGRATED PLANNING AND REPORTING FRAMEWORK
Goal:	1. We have an accessible inclusive and sustainable community 2. We drive the economy to support prosperity 4. We are an independent shire and well-governed community
Strategy:	1.4. Access to and equity of services 2.3. Communities that are well serviced with essential infrastructure 4.2. A strategic, accountable and representative Council

Summary

This report presents the Draft Asset Management Policy for Council’s consideration.

Council sets its Asset Management Policy as part of its Office of Local Government requirement for Integrated Planning and Reporting (IP&R) strategic documents. These documents are required to be endorsed within the first twelve (12) months of a new Council term.

Recommendation

That Council:

1. Endorse the Draft Asset Management Policy for public exhibition for a period of not less than 28 days.

2. Receive a further report on completion of the exhibition period if any submissions are received and/or changes proposed.

3. Adopt the Draft Policy if no submissions are received and/or no changes are proposed.

Report

Asset management planning is a key component of Uralla Shire Council's Resourcing Strategy, alongside long-term financial planning and workforce management planning. Together, these elements outline how work identified in the Community Strategic Plan will be delivered in Council’s Delivery Program and Operational Plan, and how they will be effectively resourced.

The primary goal of asset management planning is to deliver the necessary level of service to the community in line with the Community Strategic Plan, while ensuring cost-effectiveness.

The Integrated Planning & Reporting Guidelines for Local Government in NSW (IPR Guidelines) outline the requirements for the asset management policy and strategy to be updated within twelve (12) months of a new Council term. These documents, in turn, support the Council’s Community Strategic Plan and Delivery Programs.

The draft policy is an update of Council’s current infrastructure Policy: Asset Management 2022 and has been reviewed by internal stakeholders (with tracked changes as Attachment 1), referencing the latest International Standards and the Integrated Planning & Reporting Guidelines. The Draft Policy: Asset Management 2025 is attachment 2.

The Policy guides the implementation of consistent and best practice asset management planning for Uralla Shire Council.

Conclusion

The draft Policy: Asset Management 2025 is presented to Council for endorsement for public exhibition to invite submissions from the public, and adoption if no submissions are received during the exhibition period.

COUNCIL IMPLICATIONS

Community Engagement/Communication

The report proposes the document is placed on public exhibition for a period of not less than 28 days with submissions invited from the public.

Policy and Regulation

Local Government Act 1993

Local Government (General) Regulation 2021

Integrated Planning & Reporting Guidelines for Local Government

Financial/Long Term Financial Plan

Asset management is a key component of the Council’s long term financial sustainability.

Asset Management Policy

The Asset Management Policy guides the implementation of consistent and sustainable asset management planning at Uralla Shire Council.

Workforce/Workforce Management Strategy

The policy guides Councils staff resourcing and direction regarding workforce management.

Legal and Risk Management

Effective financial and asset management is a requirement of the Local Government Act 1993. Policies and Strategies are designed to mitigate Council’s various risks. The risk associated with adopting the Policy is considered low.

Performance Measures

Compliance with the Local Government Act 1993 and the Integrated Planning & Reporting Guidelines for Local Government.

Project Management

Director Infrastructure and Development; Asset Manager

Ordinary Council Meeting Business Agenda

25 March 2025

14.4 Proposed Quality Care and Governance Committee for Aged and Community Care

Department:	Corporate & Community
Prepared By:	Acting Director Corporate & Community
Authorised By:	General Manager
Reference:	UINT/25/4375
LINKAGE TO INTEGRATED PLANNING AND REPORTING FRAMEWORK
Goal:	1. We have an accessible inclusive and sustainable community 4. We are an independent shire and well-governed community
Strategy:	1.4. Access to and equity of services 4.2. A strategic, accountable and representative Council

Summary

A Quality Care and Governance Committee (Committee) is proposed to provide advice and clinical oversight for the aged care services delivered by Uralla Shire Council (Council). This new Committee will assist Council’s aged care services in meeting the current and strengthened Aged Care Quality Standards through the delivery of safe, quality care with a focus on continuous improvement.

From 1 July 2025, under the Aged Care Act 2024 (Cth) (Aged Care Act) all councillors will be deemed to be ‘responsible persons’ as members of the governing body of Council. This will result in positive obligations on councillors to ensure compliance with the Aged Care Code of Conduct and the conditions of registration for Council’s aged care services. It is important to ensure that the governing body is adequately informed by an independent committee of subject matter experts that its aged care services are meeting the requirements of the strengthened Aged Care Quality Standards.

The main purpose of the Committee is to:

· focus on matters relating to the delivery of Council’s aged care services including quality of care, clinical governance and responses to incidents and risks that arise in the course of its operations;

· provide subject matter expertise and unique perspectives that may otherwise be lacking in the governing body; and

· allow for some degree of separation between the subject matter and the governing body, to ensure adequate accountability for relevant decisions.

This report proposes that Council seek expressions of interest from suitably qualified applicants to serve as independent members of the Committee. It is proposed that the members of the Committee include:

· a senior clinical expert who is an experienced Quality Manager or who has clinical governance oversight expertise (voting);

· an industry expert (voting);

· a business expert (voting); and

· a councillor representative (non-voting), with suitable subject matter expertise.

Recommendation

That Council:

1. Calls for Expressions of Interest from suitably qualified independent experts to sit on the Quality Care and Governance Committee.

2. Adopts the fees for the independent members and Chair as detailed in this report.

3. Appoints a Councillor representative to the Committee.

4. Receives a further report on the proposed Terms of Reference and the responses to the Expressions of Interest.

Report

The Committee will focus on ensuring that our aged care services meet the Aged Care Quality Standards through the delivery of safe, quality care with a focus on continuous improvement.

Additional functions of the Committee will be to monitor and review the quality of care in line with the Aged Care Quality Standards, implement quality improvement strategies and manage and mitigate clinical risks.

Each Councillor is a ‘responsible person’ under Aged Care Act, and each ‘responsible person’ has a duty to exercise due diligence to ensure that the aged care provider complies with the responsible provider duty. This includes taking reasonable steps to:

· acquire and maintain knowledge of requirements applying to registered providers under the Aged Care Act;

· gain an understanding of the nature of the funded aged care service the registered provider delivers and the potential adverse effects that can result to individuals when delivering those services;

· ensure that the registered provider has available for use, and uses, appropriate resources and processes to manage adverse effects to the health and safety of individuals accessing funded aged care services delivered by the provider;

· ensure that the registered provider has appropriate processes for receiving and considering information regarding incidents and risks and responding in a timely way to that information;

· to ensure the registered provider has, and implements, processes for complying with any duty or requirement of the registered provider under the Aged Care Act.

The Committee will assist each ‘responsible person’ in Council (including Councillors, the General Manager, and any other person who has authority or responsibility for (or significant influence over) planning, directing or controlling the activities of the provider) to demonstrate that they are exercising due diligence to ensure that the provider complies with the responsible provider duty.

Proposed Timeline:

The following timetable is proposed:

April 2025 - Expressions of Interest advertised.

May 2025 – Report to Council prepared on draft Terms of Reference and responses to Expressions of Interest, with recommendations for the appointment of the Chair and other members of the Committee.

Before or by 1 July 2025 – Committee commences.

Expressions of Interest

Expressions of interest are proposed to be sought from:

· A senior clinical expert who is an experienced quality manager or who has clinical governance oversight expertise.

· An aged care services industry expert.

· A business expert with financial knowledge of aged care services.

It is also recommended that Council appoints a councillor representative (non-voting) with suitable subject matter expertise.

Fees for Committee members

It is proposed that the independent Committee members will be remunerated similarly to the independent members of Council’s Audit Risk and Improvement Committee (ARIC) as follows:

· Independent Members: $750 per meeting

· Chair: $1,000 per meeting.

· Reasonable travel and accommodation costs.

It is important to have the councillor representative as non-voting to reinforce the public perception of independence in the review and assessment of Council’s aged care services. A councillor with voting power on the Committee could potentially be perceived to have a conflict of interest when reviewing some issues or decisions made by Council at its ordinary or extraordinary meetings. Potentially the Councillor would also have to leave the Council meeting during debate and voting on the Committee’s reports to Council.

Further, the Committee is intended to only function as an advisory body, meaning that it provides recommendations to the Council rather than making direct decisions, so a non-voting councillor can still contribute valuable insights without having to vote on the recommendations to Council. The role of the non-voting Councillor representative will be to:

· relay to the Committee any concerns that the governing body may have regarding the council and issues being considered by the Committee;

· provide local insight to assist the Committee; and

· advise the governing body (as necessary) of the work of the Committee and issues arising from it.

Terms of Reference

Draft Terms of Reference are being developed and will be reported to Council for endorsement in May 2025.

The Committee will consider all matters relating to quality care, clinical care and compliance with registration conditions. The matters relating to financial management and business risk management more broadly will still be considered by ARIC.

It is proposed that the Committee will meet at least 4 times a year, with the option for an additional meeting per year if required.

Conclusion

The Committee allows for an effective and efficient way for the governing body to be across the issues and responsibilities relating to its aged care services. It is intended that the Committee will be operational before or by 1 July 2025 so that the governing body will be able to adequately demonstrate compliance with the requirements of the Aged Care Act.

Council Implications

Community Engagement/Communication

Staff have consulted with the Mayor and councillors via an information session and email.

Policy and Regulation

While the Committee is not strictly required under the Aged Care Act due to an exemption for local government, implementation of the Committee is strongly recommended to ensure adequate governance and oversight in the delivery of Council’s aged care services.

Financial/Long Term Financial Plan

There are budget implications for the establishment and funding of the Committee. This would be included in the budget for 2025/2026 and future budgets.

Asset Management/Asset Management Strategy

Not applicable.

Workforce/Workforce Management Strategy

Secretarial support for the Committee can be accommodated within existing resources.

Legal and Risk Management

The Committee will reduce Council’s legal risks and enhance compliance with the requirements of the Aged Care Act.

Performance Measures

The draft Terms of Reference will require the Committee to undertake a self-assessment against the annual and term work plans and report this back to the governing body.

Project Management

Director Corporate and Community will be responsible for the establishment and ongoing operation of the Committee.

Ordinary Council Meeting Business Agenda

25 March 2025

14.5 DRAFT Long Term Financial Plan 2026-2035

Department:	Corporate & Community
Prepared By:	Manager Finance
Authorised By:	General Manager
Reference:	UINT/24/18144
Attachments:	1. LTFP Report 2025-26 to 2034-35 ⇩ 2. LTFP 2025-26 to 2034-35 Combined Report - Base Model ⇩
LINKAGE TO INTEGRATED PLANNING AND REPORTING FRAMEWORK
Goal:	4. We are an independent shire and well-governed community
Strategy:	4.1. Informed and collaborative leadership in our community 4.2. A strategic, accountable and representative Council 4.3. An efficient and effective independent local government

Summary

The Long-Term Financial Plan (LTFP) models the financial implications for a term of 10 years. The LTFP consolidates Council’s current and future financial obligations, informs decision-making and demonstrates how the objectives of the Community Strategic Plan and commitments of the Delivery Program, Asset Management Plan and Operational Plan will be resourced and funded.

This report presents the LTFP model for Council consideration, analysing the annual cash position in both the base model and in various scenarios. The first version of the LTFP highlighted significant cash flow challenges which would undermine the long-term financial sustainability of Council. These challenges were addressed in the recommended Version 4 through the rearrangement of capital investments and revenue enhancements, a proposed Special Rate Variation, increased waste service fees, and additional bond income from McMaugh Gardens, leading to a positive cash flow to support Council’s long-term objectives.

It is recommended that Council endorses Version 4 of the LTFP for public exhibition. Subject to the outcome of the public exhibition process, a further report will be prepared for Council for adoption of the LTFP. Noting the recommended Version 4 relies on a Special Rate Variation, a comprehensive community engagement program will be recommended for Council approval.

Recommendation

That Council:

1. Endorses Version 4 of the draft Long Term Financial Plan for public exhibition for 28 days.

2. Receives a future report detailing all submissions received during the exhibition period and any recommendations arising.

3. Subject to consideration of the public submissions, undertakes a comprehensive community engagement program regarding the proposed Special Rate Variation for financial years 26/27 and 27/28 included in Version 4.

Report

All NSW local government authorities are required to develop and adopt a LTFP as part of the Integrated Planning and Reporting framework. The LTFP is reviewed and updated annually to ensure it remains relevant, adapts to changing circumstances, and incorporates updates to assumptions, financial performance, and strategic priorities. The LTFP is built on key assumptions to present a realistic financial outlook aligned with strategic objectives, covering both financial and operational aspects.

The development of Uralla Shire Council’s LTFP has undergone development across multiple scenarios to ensure financial sustainability and strategic alignment with Council’s strategic objectives. After multiple revisions of the LTFP model, a base model was developed projecting a positive position across all financial funds. Various scenarios were tested by adjusting revenue and expense assumptions in the base model to assess their impact on the cash position.

The LTFP includes:

· The key planning assumptions used to develop the LTFP.

· Sensitivity analysis highlighting factors/ assumptions most likely to affect the LTFP.

· Financial modelling for different scenarios.

· Projected income and expenditure, balance sheet and cash flow statement.

· Methods of monitoring financial performance.

The LTFP highlights our progress towards long-term financial sustainability, which is essentially the council's financial capacity to deliver acceptable, affordable, and ongoing services to its community.

The preparation of the LTFP was a collaborative process, with the financial model created in-house and input gathered from stakeholders. The LTFP serves as a strategic roadmap for managing resources, investments, and expenditures over an extended period. Its primary objective is to ensure financial sustainability while meeting the community's needs and maintaining service levels. This report outlines the various stages involved in the preparation of the LTFP for a ten-year period across financial years 2025-26 to 2034-35.

The initial version of the LTFP, showed significant cash deficits across the 10-year period. Subsequent refinements resulted in improved cash flow and financial sustainability.

To provide a more detailed segment-wise analysis, an additional financial fund was created, bringing the total to five funds. The funds now include the General Fund, Water Fund, Wastewater Fund, McMaugh Gardens Fund, and Waste Services Fund.

Long term financial sustainability challenges

Uralla Shire Council provides a wide range of services to our community. Maintaining our roads and footpaths, managing waste collection and landfill, looking after parks, library services, Visitor Information Services, and delivering community events and programs are all services that our communities rely on every day.

In recent years, there has been both a reduction in funding from both the Federal and State Governments and a significant financial impact from cost-shifting, particularly from the State Government.

Key future financial challenges for Council include waste management and the future capital investment required at the Uralla landfill, aged and community care services, new biodiversity and weed management responsibilities, and the ongoing strategic and planning response to renewable energy development.

Just like households and businesses, Council has also been facing rising costs. As a Council, we have done everything we can to reduce spending, including improving efficiencies, reviewing fees and charges, sharing staff with other councils and securing grants wherever possible.

The development of the LTFP model has demonstrated that Council cannot continue to deliver the current level of services, meet the current service standards and deliver capital programs without additional revenue. The scenarios detailed below tested a number of assumptions to arrive at a model that ensures Council’s financial sustainability over the forecast 10-year period.

Principal to the recommended Version 4 model, is the assumption of a Special Rate Variation spread over financial years 26/27 and 27/28. Any Special Rate Variation is subject to approval by the Independent Pricing and Regulatory Tribunal (IPART).

Subject to Council approval and the outcome of the public exhibition process for the LTFP, the proposed implementation timeframe allows for a robust community engagement program prior to an application to IPART.

LTFP scenario models

Four LTFP scenarios were developed to model Council’s projected financial expenditure, cash flow and revenue over the 10-year horizon. These are discussed below.

Version 1 - Initial Plan and Cash Deficits

The first version of the LTFP focused on Council's baseline financial situation, using a combination of past trends and the current year's original budgets for income, expenditure, and capital investments, as per the asset management plans. Various assumptions, including general rates, waste service fees, and capital works, were applied to build this LTFP model.

Key Results

· Operational expenses and capital investments exceeded forecast income, resulting in a negative cash flow.

· The projections indicated a cumulative cash deficit of $6.5 million. This included a $19.7 million deficit in general funds, a $4.1 million surplus in water funds, a $7.2 million surplus in sewer funds, a $0.7 million surplus in McMaugh Gardens funds, and a $2.6 million deficit in waste funds.

· This gave rise to concerns regarding Council’s ability to maintain service levels and meet financial obligations without substantial revisions.

Issues Identified

· High capital expenditure not aligned with available cash flow.

· Insufficient revenue growth in key areas, such as rates and waste services.

Version 2 - Rearrangement and Deferral of Capital Investments

In response to the significant cash deficits in the first version of the LTFP, the second version of the LTFP included some strategic adjustments, particularly in capital investments, to reduce the negative impact on Council's cash flow.

Key Adjustments

· Rearrangement of Capital Projects - Capital projects were rescheduled, with some large-scale investments deferred to future years, reducing immediate cash outflows.

· Capital Investment Prioritisation - Less urgent or non-essential capital works were postponed to allow for the allocation of resources to critical infrastructure needs.

· Cash Flow Adjustment - With the deferral and reallocation of capital expenditures, the immediate pressure on Council’s cash flow was alleviated, resulting in a less severe deficit.

Key Results

· The cash deficit was reduced, but the cash position remained negative.

· The deferral of capital works provided temporary financial relief, but it highlighted the need for generation of ongoing revenue to ensure long-term sustainability of Council operations and provision of services.

Version 3 - Special Rate Variation and Waste Service Fee Increase

The third stage of LTFP development aimed to achieve a positive cash flow while maintaining key services and required capital works.

Key Adjustments

· Special Rate Variation - A special rate variation was modelled to increase general rates above the forecast standard rate peg, ensuring the rate base aligns with rising service delivery costs and infrastructure investment needs.

· Increase in Waste Service Fees: To cover the estimated $4.6 million required for landfill remediation starting from 2026-27, and approximately $4 million for new landfill facility development, increased fees and charges for waste management services were applied in this version of LTFP.

Key Results

· These refinements generated a positive cash flow in the later years of the LTFP model.

· Although short-term projections indicated tight cash positions, these are manageable, enabling Council to confidently plan future investments and maintain service delivery.

Version 4 - McMaugh Gardens Capital Investment and Additional Revenue from Bonds

The fourth version of the LTFP incorporated additional investments identified at a later stage following a consultant’s review of McMaugh Gardens asset renewals.

At the same time, a new revenue source emerged from recent changes resulting from the Aged Care Act 2024 (Cth), enabling Council to retain 2% of bond money annually for up to 5 years, capped at 10% in total.

Key Adjustments

· Retention Income from Bonds - Allows Council to generate more revenue and accommodate the requirement of additional capital investments for future renewals and upgrades to McMaugh Gardens infrastructure.

Key Results

· The updated version, built upon all previous adjustments to the LTFP model, demonstrates a positive cash position across the 10-year period.

· This version of the LTFP model aligns with Council’s objectives for financial sustainability, effective service delivery, and long-term growth.

Sensitivity Analysis

Sensitivity analysis in the LTFP help to assess the impact of changes in key assumptions and variables regarding financial outcomes. Sensitivity analysis involves testing how the plan's projections respond to different scenarios, mainly in revenue and expenses.

After developing the base LTFP model through to Version 4, three sensitivity scenarios were developed to assess the financial impact, and to enable Council to make informed decisions. The scenarios are:

· Base model – Version 4 of the LTFP model

· Sensitivity 1: 1% decrease in revenue.

· Sensitivity 2: 1% increase in expenses.

· Sensitivity 3: Combination of a 1% revenue decrease and a 1% expense increase.

A snapshot of the cash position in each of the scenarios for each of the five financial funds is provided in the table below:

As demonstrated in the above table, the base model of the LTFP is the only scenario which provides a positive cash position across all funds.

Financial sustainability and factors contributing to the need for a Special Rate Variation

· For 48 consecutive year’s Council’s annual rates increases have been less than CPI because of the ‘Rate Peg’ applied by the NSW Government.

The NSW Government’s Forced Rate Peg – The ‘Rate Peg’, applied to NSW Councils 48 years ago (1977) by the NSW Government introduced the practice of capping the annual increase that a council could apply to its previous year’s total rates revenue.

The standard principle, which continues to be applied by consecutive NSW Governments, is to ensure that each successive annual rate increase will be less than the actual CPI increase for the previous year.

In short, Council’s costs of delivering its core service functions go up each year by more than Council is allowed to collect. This process has ensured a steady diminution in the real purchasing power of all NSW councils’ rates revenue, year on year, for the past 48 years.

Assuming Council collected $100 per ratepayer in 1977, then an annual rate cap which is say 0.2% less than each CPI over the 48-year period has now resulted in Council collecting, in real terms, less than $70 per rate payer of purchasing power in 2025.

· An amount now equal to $460 per Ratepayer, per annum of costs have been unilaterally shifted from the NSW Government onto NSW Councils

Cost Shifting - is the annual process of consecutive NSW Governments unilaterally making councils responsible and accountable for the delivery of what were previously NSW Government responsibilities and services without providing sufficient compensatory revenue or funding to the councils affected.

The most recent analysis on the matter “How State Costs Eat Council Rates” (LGNSW 2024) found that the burden of cost shifting has skyrocketed 78% in the past five years to $1.36 billion a year.

The LGNSW calculation notes that NSW councils (after decades of ‘successful’ cost shifting by the NSW Government) are now annually responsible for delivering more than $460 per ratepayer of what once were NSW and Federal Government responsibilities (with limited, if any, offsetting revenue).

· The Diminishing Level of Federal Assistance Grants

Financial Assistance Grants – A vertical fiscal imbalance (VFI) refers to a mismatch between the spending responsibilities and revenue-raising capabilities of different levels of government, particularly between the Federal Government and NSW Government on the one hand, and Local Councils on the other.

Local government councils only collect around 3.5 percent of taxation nationally and cannot effectively execute their duties without support from other spheres of government (ie. Commonwealth and State) to provide and maintain the infrastructure their communities need such as swimming pools, playgrounds, sports facilities, regional airports, and roads.

This disparity was formally acknowledged by the Commonwealth Government more than 30 years ago. To address this disparity the Commonwealth Government committed at the time to providing local councils with an annual 1% share of the Commonwealth Government’s total taxation takings each year.

That commitment was not maintained over time and real value of Financial Assistance Grants provided to local government has steadily declined over the past three decades from the promised 1 percent share of Commonwealth taxation revenue to around 0.55 percent today.

Conclusion

The preparation of Council’s LTFP involved a series of strategic adjustments to overcome initial projected cash deficits and to achieve financial sustainability across the 10-year period which the LTFP covered. The first version of the LTFP highlighted significant cash flow challenges, which were addressed through the rearrangement of capital investments and revenue enhancements through a special rate variation, increased waste service fees, and additional bond income from McMaugh Gardens, leading to a positive cash flow to support Council’s long-term objectives.

The LTFP is now well-positioned to support Council’s future goals while maintaining financial stability. The LTFP will continue to be reviewed annually, with any changes in circumstances addressed through future updates. After analysing the annual cash position in both the base model and in various sensitivity scenarios, we recommend that Council endorses Version 4 of the LTFP for public exhibition. Subject to the outcome of the public exhibition process, a further report will be prepared for Council for adoption of the LTFP. Noting the recommended Version 4 relies on a Special Rate Variation, a comprehensive community engagement program will be recommended for Council approval.

Council Implications

Community Engagement/Communication

The draft LTFP be placed on public exhibition for community consultation.

Policy and Regulation

Local Government Act 1993, Local Government (General) Regulation 2021, Office of Local Government Integrated Planning and Reporting Guidelines.

Financial/Long Term Financial Plan

Council is exploring other possibilities to generate additional revenue for the delivery of services and capital expenditure.

Asset Management/Asset Management Strategy

Asset Management Plan projections have been incorporated in the LTFP. The decision regarding the suggested financial models within the LTFP could influence the lifespan of assets and the ability to sustain the use of infrastructure.

Workforce/Workforce Management Strategy

Work force management plan projections have been incorporated in the LTFP.

Legal and Risk Management

Continued review of costs and revenue raising opportunities is necessary to confidently assess the risk of financial sustainability.

Performance Measures

The Long Term Financial Plan will be supported by the Delivery Programme and the Operational Plan which include performance measures.

Project Management

Project management for the LTFP is the responsibility of the Chief Financial Officer.

Ordinary Council Meeting Business Agenda

25 March 2025

14.7 Investments as at 28 February 2025

Department:	Corporate & Community
Prepared By:	Senior Finance Officer
Authorised By:	General Manager
Goal:	4. We are an independent shire and well-governed community
Strategy:	4.2. A strategic, accountable and representative Council

Summary

This Report contains a summary of bank accounts, term deposits, cash management accounts and investments in structured credit instruments. The investments have been made in accordance with Section 625 of Local Government Act 1993, Regulation 212 of the NSW Local Government (General) Regulations 2021, and Council’s Investment Policy 2019.

Recommendation

That Council notes the cash position as of 28 February 2025 consisting of:

· cash and overnight funds of $3,683,615.

· term deposits of $24,350,000.

· total convertible funds of $28,033,615 ($3,683,615 + $24,350,000) (including restricted funds).

Report

Current term deposits of $24,350,000 spread over the next twelve months will receive interest rates ranging from 4.72% to 5.45%, with an average rate of 5.06%. Council’s General Fund bank balances (refer to the Schedule of Cash at bank and Term deposits below) have been reconciled to the bank statement as of 28 February 2025.

An additional table has been added to this report to provide movement of term deposits with different banks.

key issues

Official cash rate

As of 28 February 2025, the official cash rate set by the Reserve Bank of Australia (RBA) was 4.10%, following a 0.25% rate reduction at the RBA’s February Board meeting. This decision, along with any future rate cuts, could potentially impact future investment returns. The timing of potential interest rate changes will be guided by the incoming data and the RBA Board’s assessment of the outlook for inflation and the labour market.

McMaugh Gardens - Bond Liability

As per the Department of Health’s prudential guidelines, the council is advised to disclose the amount of McMaugh Garden’s bond liability in the investment report. McMaugh Garden’s Bond liability status as of 28 February 2025 is shown below:

Restricted and Unrestricted Cash, Cash Equivalents, and Investments

Of the amount of cash disclosed in this report, not all the cash is available for unrestricted use by Council. Most of the cash has been set aside to meet external restrictions, being those funds that have been provided for specific purposes such as developer contributions, government grants, loans, water supplies, sewer services and Aged Care Bonds. Additionally, a portion of the cash has been set aside to cover future commitments that Council has made relating to asset renewals, remediation works or leave provisions.

Most of the Council’s cash is externally restricted and not available for day-to-day operational expenditure. As per audited financial statements for the year ending 30 June 2024, the amount of unrestricted cash was $1,878,692. Council updates its restriction status at the end of each quarter. Based on latest reconciliation as of 31 December 2024, the Council’s unrestricted cash is $1,954,963.

Conclusion

I, Mustaq Ahammed, Manager Finance, hereby certify that the above investments have been made in accordance with the Section 212 of the Local Government (General) Regulation 2021, and section 625 of the Local Government Act 1993, and Council’s investment policy.