final six month report 2018-2019 · final six month report 2018-2019 6 the council has committed to...

FINAL SIX MONTH REPORT 2018-2019 AND PRELIMINARY END-OF YEAR BUDGET POSITION

June 2019

Including the six month progress report on the Delivery Program

Reporting on the Implementation of the 2018-2019 Operational Plan (Year 2 of the Council’s 2017-2021 Delivery Program)

The Services Delivered By Council

Key Direction 1

Services

Strategic and Governance

Key Direction 2

Services

Natural Environment

Waste Resource Management

Water Resource Managements

Key Direction 3

Services

Aquatic % Leisure Centres

Community Development

Cultural Development

Emergency Management

Environmental Health & Regulatory

Compliance

Family Day Care

Libraries & Information

Sport & Recreation

Key Direction 4

Services

Building Certification

Burials & Ashes Placement

City Presentation

City-Wide Strategic Planning

Land Use Management

Key Direction 5

Services Transport & Public Access

Key Direction 6

Services Commercial Activities

Economic Development & Tourism

Contents ABOUT THIS REPORT ......................................................................................................................... 4

SUMMARY OF PERFORMANCE ......................................................................................................... 5

SIX MONTH HIGHLIGHTS .................................................................................................................. 7

ADVOCACY / ISSUES TO NOTE ........................................................................................................ 9

DELIVERY PROGRAM PERFORMANCE MEASURES ................................................................... 10

MAJOR PROJECTS ............................................................................................................................... 19

ASSET WORKS PROGRAM ............................................................................................................... 20

OTHER OPERATIONAL PLAN ACTIONS ..................................................................................... 28

FIT FOR THE FUTURE ACTION PLAN .......................................................................................... 32

QUARTERLY BUDGET REVIEW STATEMENT BY THE RESPONSIBLE ACCOUNTING

OFFICER ................................................................................................................................................. 37

KEY TERMS USED IN THIS REPORT .............................................................................................. 48

Final Six Month Report 2018-2019

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About this report The provisions of Integrated Planning and Reporting under the Local Government Act 1993 require that reports are provided to the Council on the progress in implementing the Delivery Program and Operational Plan as follows:

Budget review statement (Quarters 1, 2 and 3);

Delivery Program progress report (6-monthly); and

Annual report including audited financial reports (within 5 months of the end of each financial year). This report provides the final six monthly delivery program progress report (as at 30 June 2018), and includes the preliminary end-of-year budget position.

The Purpose of Reports Reports have been designed:

To meet legislative requirements (transparency and accountability);

To provide a practical assessment of how the Council is tracking overall – whether we are delivering against our commitments on time and within budget; and

To demonstrate results / achievements and to formally document any issues that arise that impact on service delivery commitments.

How the Council will be assessing progress in 2018-2019

Budget Review Statement The budget review statement must include details on the general financial position of the Council and if this position is regarded as unsatisfactory, also include recommendations for remedial action. The budget review statement will be provided to the Council as follows: Quarter 1 (as at 30 September 2018) – reported in November 2018 Quarter 2 (as at 31 December 2018) – reported in February 2019 Quarter 3 (as at 31 March 2019) – reported in May 2019 Quarter 4 (preliminary end-of-year position as at 30 June 2019) – reported in August 2019

Delivery Program and Operational Plan progress report The method for assessing progress in implementing the Council’s Delivery Program and Operational Plan includes: Action / project progress – tracking whether actions / projects are being delivered as planned on time and

within budget (reported every six months) Other service measures – used to measure whether specific outputs or standards are achieved by

different services (reported at the end of the financial year) Quantitative Organisational Sustainability Performance (Quadruple Bottom Line) measures – used to

measure Council’s environmental, social, financial and governance performance against the Key Direction of Civic Leadership (reported at the end of the financial year)

Qualitative Community Survey – used to measure perceptions of key stakeholders on service performance results (reported at the end of every second financial year)

Quantitative asset based measures – used to measure actual improvement in built asset condition e.g. roads, footpaths, pools (reported at the end of the council term)

Progress on the implementation of the 2017-2021 Delivery Program and 2018-2019 Operational Plan will be provided to the Council as follows: First six months (July to December 2018) – reported in February 2019 Final six months (January to June 2018) – reported in August 2019


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Summary of Performance Significant Matters The Council has demonstrated a responsive and proactive approach to emerging issues, and strong leadership on a range of complex matters that required attention during the 2018-2019 financial year. This includes compliance with a Performance Improvement Order, unforseen asbestos remediation projects and an Organisational Performance Review. These additional projects have introduced significant additional

workload, and resulted in a number of rescheduled actions that had been planned for 2018-2019. Major Project Milestones Major Projects are those one-off projects that a have a significant capital component and / or requires significant financial / staff resources / community consultation usually over more than one financial year. As at 30 June 2019:

75% of Major Projects for 2018-2019 were On Target (refer to page 19).

Asset Works Program

Asset projects are those projects that involve the planning and construction of new built assets or the improvement of existing built assets, such as footpaths, signage, roads and community halls.

As at 30 June 2019:

70% of Asset Works Program (including major projects) were completed (refer to page 20). The Asset Works program expenditure for the 2018-2019 year was $13.0M (69%) of the Revised Budget.

Other Operational Plan Actions The Council has committed to delivering a wide range of actions and projects through its service delivery. As at 30 June 2019:

90% of other Operational Plan actions were Completed (refer to page 28).

Fit for the Future Action Plan The Fit for the Future action plan was developed to achieve Fit for the Future targets by 2019-2020. As at 30 June 2018:

92% of the Fit for the Future Action Plan milestones were on target (refer to page 32).

Delivery Program Performance Measures:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Fit for the Future Action Plan

Other Operational Plan Actions

Capital Works Projects

Major Project milestones

% Achieved % Behind Target


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The Council has committed to a 91 performance measures to assess the Council’s quadruple bottom line performance - governance, environmental, social and financial performance and to track if services have been delivered as planned in terms of the service delivery outputs/standards.

As at 30 June 2019: 61 (67%) of the Performance Measure targets for 2018-2019 were achieved or were within 10% of the target, with 16 (18%) below target (refer to page 10) 14 (15%) Performance measures have insufficient data available at this time to calculate the result.

Performance Measures by Key Direction as at 30 June 2019 LEAD

9 (56%) of Lead Performance Measure targets for 2018-2019 were achieved, 4(25%) were behind target and 3(19%) Not yet available.

PROTECT

10 (71%) of Protect Performance Measure targets for 2018-2019 were achieved, 1(7%) were behind target and 3(21%) Not yet available.

CARE

19 (61%) of Care Performance Measure targets for 2018-2019 were achieved with an additional 3(10%) within ±10% of target, 5(16%) were behind target and 4(13%) Not yet available.

LIVE

7(54%) of Live Performance Measure targets for 2018-2019 were achieved with an additional 1(8%) within ±10% of target, 3(23%) were behind target and 2(15%) Not yet available.

MOVE

8(73%) of Move Performance Measure targets for 2018-2019 were achieved with an additional 1(9%) within ±10% of target, 1(9%) were behind target and 1(9%) Not yet available.

THRIVE

3(50%) of Thrive Performance Measure targets for 2018-2019 were achieved, 2(33%) were behind target and 1(17%) Not yet available.

0% 20% 40% 60% 80% 100%

THRIVE

MOVE

LIVE

CARE

PROTECT

LEAD

OVERALL RESULT

% On Target Not yet available % Below Target


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Six Month Highlights January to June 2019

Lead Performance Improvement Order – improvement plans progress Council was issued with a Performance Improvement Order (PIO) by the Minister for Local Government on 22 January 2018. The PIO sets out 105 actions to ensure that the Council’s governance, asbestos management practices, staff recruitment and associated practices comply with regulatory obligations. The components include compliance reporting in respect of actions taken to progress the improvement plans arising from the two independent investigations. Monthly progress reports against the improvement plans actions, as required by the PIO, are being sent to the Minister until all actions are completed to the satisfaction of Council. 103 actions have now been completed and reported to the Minister with 2 remaining actions due to be completed Q1 2019-20.

Outcomes of the Organisational Performance Review endorsed by Council March 2019 for implementation 1 July 2019 Council received the outcomes of the organisational performance review at the Ordinary Meeting on 26 March 2019. The purpose of the review was to engage with staff and the elected Councillors to develop a shared vision and action plan for improving organisational performance; and strengthen our capability to anticipate and respond to challenges and opportunities, including strengthening our safety and asbestos management. The organisational redesign will commence 1 July 2019.

Corporate Communications enhanced The Councils Corporate Website had 1.295M page views and 219,615 unique users. This was up from 95,802 page views and 168,498 users in 2017-2018. Council's corporate Facebook page reached almost 760,000 people with 365 posts. A new fortnightly community eNewsletter to raise awareness of how Council serves the community was launched during the year.

Council also completed the BMCC Brand Guide that provides a framework for Council's primary brand and brand family.

Year three of the Delivery Program 2017-2021 and Operational Plan 2019-2020 including the Fees & Charges 2019-2020 exhibited and adopted. In June 2019 Council adopted the Delivery Program 2017-2021 and Operational Plan 2019-2020. The documents outline Council’s action plan for the next financial year delivering on the objectives and Strategies in the Community Strategic Plan 2035. These documents were on Public Exhibition during May prior to their adoption in June. In 2019-2020 Council plans to spend $22.7M on capital works projects and has an operating budget of $122M.

Protect

Waste Service performance 1,479,910 waste (red lid) bins were emptied during 2018/2019. This equates to an average of 28,460 bins each week, indicating that approximately 84.5% of available waste bins are put out for collection each week. Kerbside service volumes collected (compared to previous year): Waste 16,465 tonnes (0.08% higher); Garden Organics 9,284.7 tonnes (7.87% higher) and Recycling 7,486.44 tonnes (8.49% lower). In total, this equates to a 0.15% (49.8 tonnes) increase in waste generation compared to 2017/2018. The EPA funded Community Recycling Centre (CRC) at Katoomba RR&WMF received 44.024 tonnes of household hazardous and problem wastes during 2018/2019. Waste paint is, by far, the largest component at 31.67 tonnes (71.93%) with gas cylinders at 4.17 tonnes (9.5%) the next most common product delivered. Council's Booked Waste Collection service is constantly praised by service users. 12,953 service bookings were made during 2018/2019: 10,328 Bulky and 2,625 Kerbside Chipping. This represents a total increase of 3.1% over the previous year in the number of service requests: this included an increase of 2.4% in the requests for Kerbside Chipping compared to 2017/2018 (reversing previous reduction trends). A


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total of 1,018.7 tonnes of waste and 545.3 tonnes of recyclables were collected and 8,309m3 of organic material was chipped.

Planning for Carbon Abatement Program

Carbon Abatement Projects secured over $1M of funding from Council’s carbon revolving reserve plus $240,000 of grant funding from OEH. These projects will deliver $240,000 of annual savings & reduce carbon emissions by over 1,000 tonnes.

Joined WSROC's Energy Efficiency Program

Council has joined the Western Sydney Regional Organisation of Councils (WSROC) Energy Efficiency Program.

Man- made Turtle Habitat

Council is participating in a pilot grant program to install a man- made turtle habitat in the Glenbrook Lagoon. The first of its kind in NSW, this project is funded by the NSW Premier’s Office. The aim of the project, is to provide a safe nesting environment from predators for the several species of turtle found at Glenbrook Lagoon. The Glenbrook Lagoon Bushcare group, along with Council’s Healthy Waterways team and the University of Western Sydney, have constructed a floating island for turtles to breed on, with easy access from the water for the turtles to climb onto rest, bask and lay their eggs.

Waste to Art Initiative held

The Waste to Art Initiative was held, with a series of community workshops that engaged over 170 residents in low waste lifestyle discussions. The community created a powerful owl nest woven from waste materials that was then on exhibition in the foyer of the Springwood Hub.

Care Drug & Alcohol prevention model The Blue Mountains was chosen as one of ten sites across Australia to pilot the Icelandic drug and alcohol prevention model “Planet Youth”. Over the next three years, Council’s Community Development Team will work with the research team from Iceland, the Alcohol and Drug Foundation, local schools and community partners to roll out and evaluate this model.

Gundugurra ILUA Consultative Committee Strategic Plan Council assisted with the development and adoption of the Gundugurra ILUA Consultative Committee Strategic Plan.

Reconciliation Week Event held Council successfully delivered a reconciliation week event called: ‘Grounded in Truth: Walk together with Courage’. This event was attended by 70 mainstream community members seeking to better understand local truth telling.

Connect with Nature program delivered

Council delivered the Connect with Nature Program to 25 schools and preschools including 1400 students during the year.

Work to improve emergency preparedness 93% of Council’s Asset Protection Zone (APZ) program was completed. This resulted in reducing bushfire risk for 471 homes and major buildings. Vegetation clearing also improved access along 6.3km

of fire trails.

City deal liveability projects underway Council secured $18.7M of City Deal funding, with a Deed of Agreement for the Western Parkland City Liveability Program executed in early May 2019. Running over the next three years, Council’s Liveability program funding will be allocated to multiple projects across the City that will make it easier for everyone in the community, and visitors, to access bushland, town centres, parks, pools and playgrounds. An upgrade of the library and cultural facilities in Springwood is also funded. Consultants have been appointed and designs commenced for Blackheath Town Centre, Springwood Town Centre, Glenbrook Park Stage 2, Lawson Crown Lands and Springwood Library.

Live Lawson Crown Lands Masterplan Council adopted the Lawson Crown Lands Masterplan on 25 June 2019. The masterplan was developed with extensive community consultation and supports achievement of our community strategic objective creating vibrant places for people to live, work and play. Stage One of the adopted masterplan is funded under the Western City Deal Liveability Fund and detailed design of this work has been initiated.


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Crown Land Review Stage 1 complete Council’s Crown lands review will run until June 2021 and has been prompted by changes under the Crown Land Management Act 2016 and Crown Land Management Regulation 2018, which came into effect on 1 July 2018. This legislation seek to improve the governance and management of Crown land across NSW. Among other things, it authorises Councils that are appointed to manage dedicated or reserved Crown land, to plan for it as if it were public land under the Local Government Act 1993. Stage 1 of this review is now completed. In May 2019, Council endorsed the Schedule of Crown lands to be managed by Council, including their proposed classification and one initial categorisation.

Move Road reseal program completed During 2018-2019 Council completed approximately 70,000m2 of reseal, which is equivalent to approximately 11km length. This equates to a renewal ratio of 1.5%. In addition, approximately 7,500m2 - or 1.5kms - of unsealed roads were sealed.

Planned for active transport Council reviewed our Active Transport planning framework, to guide the development and improvement of the City’s footpath and shared path network and help us prioritise works in the future. We prepared for the construction of the next section of the Great Blue Mountains Trail, from Leura Cascades Reserve to Cliff near Kiah Lookout.

Thrive

Draft Economic Statement endorsed Council has endorsed a Draft Economic Statement.

This provides a summary of Blue Council’s current

actions and strategic direction for economic growth in

the City.

Visitor Infrastructure Investment Strategic Plan progress In March 2019 Council adopted a revised implementation plan for the Visitor Infrastructure Strategic Plan. This plan identifies revenue streams to fund investment required to support visitor infrastructure. Introducing paid parking in areas with high visitation has been identified as a priority action in this plan. To support this, we developed draft Parking Precinct Plans for key towns, villages and priority tourist sites.

Glenbrook Visitor Information Centre construction completed The new visitor information centre at Glenbrook was completed in 2018-2019. The upgrade was co- funded from a National Stronger Regions Fund grant. This provides an improved Regional Tourism Centre as well as enabling greater access to adjoining facilities and public toilets.

Advocacy / Issues to Note

January to June 2019 Quality of Life Mayoral Reference Group established The Mayor established a Quality of Life Mayoral Reference Group to facilitate ongoing discussion relating to the proposed Western Sydney Airport at Badgery’s Creek and the raising of the Warragamba Dam wall.

City Deal Councils working together

As a Council within the City Deal group , Blue Mountains City Council has continued working with the other Councils and Federal and State governments to progress with the development of a Western Sydney Digital Action Plan.


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Delivery Program Performance Measures The Council has committed to a number performance measures to assess the Council’s quadruple bottom line performance - governance, environmental, social and financial performance and to track if services have been delivered as planned in terms of the service delivery outputs/standards

TARGET MET OR EXCEEDED

WITHIN 10% OF TARGET

BELOW TARGET

NYA = Not yet available

The following table presents the results for the Service Delivery Performance Measures as at 30 June 2019. Community satisfaction measures are from the bi-annual Community Satisfaction Survey. The target is based on the mean satisfaction score out of a maximum rating of 5. The satisfaction assessment scale [ 0 to 2.9 = Low , 3 to 3.75 = Medium, 3.75 to 5 = High].

Service/ Objective Performance Measure 2017-2021 2018-2019 Target

2018-2019 Result

Comment

LEAD

Governance – Good Customer Service

Overall community satisfaction with the Council performance

Maintain or Improve 2016: 3.52

3.44

MEDIUM Satisfaction maintained. 87% of residents are at least ‘somewhat satisfied’

Overall community satisfaction with Council staff performance

Maintain 2016:3.77

3.91 HIGH Satisfaction maintained

Overall community satisfaction with Councillor performance


3.51 MEDIUM Satisfaction maintained

Overall community perception of value for money against services received



67%

18%

15%

% On Target % Behind Target Not Available

67% of Delivery Program Performance Measure targets for 2018-2019 were achieved or were within 10% of target , with 18% below target and 15% of Performance measures have insufficient data available at this time to calculate the result.


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2018-2019 Result

Comment

Overall community satisfaction with the level of Council information provided and consultation implemented.

Maintain and improve 2016: 3.36


Financial – A Financially Sustainable Council

Operating Performance Ratio *Pre-audit result.

Positive -4.74%

Own Source Revenue Ratio *Pre-audit result.

Maintain Sustainable Performance Target - To maintain a percentage greater than 60%

82.19%

This ratio measures fiscal flexibility. It is the degree of reliance on external funding sources such as operating grants & contributions. 17-18 result 83%

Building and infrastructure renewal ratio *Pre-audit result.

Increase 2016-2017: ≥77.17% Sustainable Performance Target: Greater than 100% = sustainable Less than 100% = unsustainable

Not yet available

Council's ability to fund the renewal of built assets compared with the amount of funding projected to be required from depreciation expenditure requirements

Infrastructure backlog ratio *Pre-audit result.

Decrease Not yet available

Asset Maintenance Ratio *Pre-audit result.

Maintain Not yet available

Debt Service ratio *Pre-audit result.

Decrease Sustainable Performance Target - To achieve a ratio that is less than or equal to 20%

5.7%

Percentage of the Council's total revenue used to service debt 16-17 8.2% 17-18 6.6% The result is in line with Council’s strategy to manage borrowings with the aim of reducing debt to rebuild capacity of council to borrow funds in the future.

Real Operating Expenditure per capita *Pre-audit result.

Decrease 1.58 2017: 1.40 2018: 1.51

Social – A safe , skilled and engaged workforce

Workforce Management Plan targets Lost Time Injuries

Decrease 2016-2017 17.6

23

Number of lost time injuries per million hours worked. 29 17-18 result

Workforce Management Plan targets Employee retention rate Maintain 92.55

First Year of KPI 17-18 92.2


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2018-2019 Result

Comment

Workforce Management Plan targets Employee Engagement

Equal to or greater than 66%

54%

Based on the Employee Engagement Survey conducted by AON Hewitt. The last survey was the 2016 Engagement Survey.

Environment – reduced resource consumption

Council carbon footprint Decrease 44,180 Tonnes

Co2e

2017-2018 result, 2018-2019 result not available for 3mths after financial year-end. Council's 2017-18 footprint represents a 22% decrease in emission since 2015-16

PROTECT

Natural Environment

Condition of Natural Environment assets [Dec 2014: Good 43%, Fair 34%, Poor 23%]

Maintain Not available

Community Satisfaction with Clean creeks and waterways

Maintain or increase 2106: 3.44


Community Satisfaction with Protection of Natural Bushland



Community Satisfaction with Weed Control Maintain or increase 2016: 2.99

2.91 LOW Satisfaction maintained

Community Satisfaction with Bush Regeneration



Number of core reporting sites with excellent or good waterway health ratings. (Percentage of urban waterways monitored for water health with quality ratings of ‘good – very good’ (SIGNAL-SF scores)

Maintain 2017:52%

Achieved

2019: 59% represents the proportion of all 54 urban sites in the 2019 Waterways Health Snapshot, a 2% decrease since the previous year. 2018: 61% represents the proportion of all 50 urban sites in the 2018 Waterways Health Snapshot, a 9% increase since the previous year.

Hours of participation in Council supported community conservation programs Maintain or

increase 2017:10,471 hours

9,900 volunteer hours across

Bushcare, Landcare,

Swampcare & trackcare

2019: 9,900 Hours is an increase on 2018 6,177.5 Hours but a decrease on 2017 hours


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2018-2019 Result

Comment

Waste Resource Management

Condition of Waste Resource built assets [Dec 2014: Good 81%, Fair5%, Poor 14%]

Blaxland WMF [Dec 2014: Moderate Good 70%, Fair 0%, Poor 30%] Katoomba WMF [Dec 2014: Moderate Good 95%, Fair 0%, Poor 5%] Construction Materials [Dec 2014: Moderate Good 40%, Fair40%, Poor20%] Kerbside Waste [Dec 2014: Moderate Good 90%, Fair 10%, Poor 0%]


Community satisfaction with ‘wheelie bin recycling service

Maintain 2016: 4.21 4.05

HIGH Satisfaction maintained

Community satisfaction with ‘wheelie bin garbage service

Maintain 2016: 4.17 4.08


Amount of waste tonnes to landfill (including domestic, commercial and construction/demolition) per capita

Year on Year Decrease 2017 517kg 39,783 tonnes to landfill from all sources, divided by 2016 population 76,904

470 kg Decrease

2018-2019 Result: 36,170 tonnes were landfilled at Blaxland. Population in the LGA from the 2016 census is 76,904. This gives 470 kg of waste landfill per head of population 2017-2018 result 478kg/capita.

Water Resource Management

Condition of Water Resource Management assets [Dec 2014: Good 78%, Fair17%, Poor 5%]

Maintain or increase

Not available

Community satisfaction with Management of stormwater and drainage



Inspection and maintenance of stormwater assets

85% completed Target Met

CARE

Aquatic and Leisure Centres

Community satisfaction with management of swimming pools and leisure centres

Maintain 2016: 3.78

3.49

Decrease from HIGH to MEDIUM satisfaction. Significant decrease in satisfaction.

Numbers of visitors to aquatic and leisure centres

Maintain 2017: 530,467

504,781 Increase of 0.3% 2017-2018: 503,271

Condition of aquatic and leisure centre assets [Dec 2014: Good 50%, Fair30%, Poor20%]



Community satisfaction with community centres and community halls



Community satisfaction with services and facilities for children and families




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2018-2019 Result

Comment

Community satisfaction with services and facilities for older people



Community satisfaction with services that support the local Aboriginal community.


3.07

MEDIUM Satisfaction maintained Significant decrease in satisfaction.

Community satisfaction with services and facilities for people with a disability

Maintain or increase 2016: 3.17 2.94

Decrease from MEDIUM to LOW satisfaction. Significant decrease in satisfaction.

Community satisfaction with services and facilities for young people



Condition of community development building assets [Dec 2014: Good 5%, Fair 63%, Poor 32%]


Completion of program maintenance schedules for community development building assets

85% completed 100%


Community satisfaction with Cultural & Arts facilities

Maintain 2016: 3.80 3.87


Number of visitors to the Blue Mountains Cultural Centre

Increase 2017: 113,962

118,238

Number of patrons to events at the Blue Mountains Theatre and Community Hub

Increase 54,419

Tickets sold to performances and events 29,419 & 25,000 visitors to ancillary programs and events. 2018: 48,214


Community satisfaction with planning for and supporting emergency management for the City

Maintain 2016: 3.77

3.70 Decrease from HIGH to MEDIUM satisfaction.

Community satisfaction with managing the bushfire risk on Council land


3.51

MEDIUM Satisfaction maintained

Percentage delivery of the annual Fire Mitigation Program

Actions on-time

Achieved 93%

Condition of emergency management assets Service Dashboards [Dec 2014: Good 33%, Fair 43%, Poor 24%]


Completion of program maintenance schedules for emergency management building assets

85% completed 100%

Environmental Health and Regulatory Compliance

Percentage of customer service requests related to environmental health matters actioned within target

85% completed 82%

Community satisfaction with clean, safe, healthy living environments.

Maintain 2016: 3.86 3.83


Family Day Care Number of equivalent child care hours utilised Maintain 89.25 Average child EFT 2017: 100 2018: 99

Libraries and Information Community satisfaction with Library services

Maintain 2016: 3.96 3.95



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2018-2019 Result

Comment

Number of Library patrons as a % of residents

Better than or equal to NSW average 52%

450,498 visits. 52% of the population are library users 41% NSW Average

Age of library collection Better than or equal to NSW average

57% < 5 years old

86% < 10 years old

57% of the collection is less than 5 years old (NSW average recommends 50%) 86% is less than 10 years old. (NSW average recommends 80%)

Completion of program maintenance schedules for library building assets 85% completed 100%

Sport and Recreation

Community satisfaction with Council lookouts and walking trails

Maintain 2016: 3.73 3.83

Increase from MEDIUM to HIGH Satisfaction

Community satisfaction with ovals & sporting grounds



Community satisfaction with parks & playgrounds


3.39


Condition of sport and recreation assets Natural Area Visitor Facilities [Dec 2014: Good 21%, Fair 39%, Poor40%]

Walking Tracks [Good 22%, Fair 40%, Poor38%] Lookouts [Good 20%, Fair 42%, Poor38%] Camping Grounds [Good 20%, Fair 20%, Poor 60%]

Recreation Facilities [Dec 2014: Good 21%, Fair 60%, Poor 19%]

Parks [Good 17%, Fair 62%, Poor 21%] Sports Grounds (inc. Amenities) [Good 22%, Fair 58%, Poor 20%] Courts [Good 20%, Fair 65%, Poor 15%]


Completion of program maintenance schedules for sport and recreation assets

85% completed 100%

LIVE

Building Certification

Percentage of market share for competitive components of service

60% market share 2017: 62%

55%

Land Use Management

Community satisfaction with protection of heritage values in our towns and villages



Community satisfaction with managing residential development




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2018-2019 Result

Comment

Determination times for processing development applications

Gross determination time over 3 year average ≤87 days 2017: 85 days

98 days Gross determination time for a DA is 98 days.

Town Centres Community satisfaction with the atmosphere, look and feel of our towns and villages



Community satisfaction with Litter Control Maintain or increase 2016: 3.45


Community satisfaction with Street Cleaning Maintain or increase 2016: 3.43


Community satisfaction with Parking for Shoppers


3.09


Community satisfaction with Public Toilets in town centres

Maintain or increase 2016: 3.03 2.85

Decrease from MEDIUM to LOW satisfaction. Significant decrease in satisfaction.

Condition of the town and village centres assets [Dec 2014: Good 72%, Fair 28%, Poor 0%]


Completion of program maintenance schedules for town and village centre assets

85% completed 95%

Burials and Ashes Placement

Community satisfaction with cemetery and ashes placement sites



Condition of burials and ashes placement assets [Dec 2014: Good 8%, Fair 79%, Poor 13%]


MOVE

Transport and Public Access

Community satisfaction with pedestrian access around shopping centres



Community satisfaction with traffic safety for pedestrians and vehicles



Community satisfaction with bus shelters


3.32 MEDIUM Satisfaction maintained.

Community satisfaction with sealed roads Maintain or increase 2016: 3.27

3.46

MEDIUM Satisfaction maintained. Significant increase in satisfaction.

Community satisfaction with carparks



Community satisfaction with commuter parking




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2018-2019 Result

Comment

Community satisfaction with footpaths Maintain or increase 2016: 3.04

2.98

Decrease from MEDIUM to LOW satisfaction.

Community satisfaction with cycleways Maintain or increase 2016: 2.85

2.59

LOW Satisfaction maintained. Significant decrease in satisfaction.

Condition of transport assets [Dec 2014: Good 22%, Fair 57%, Poor 21%]

Safety, Advocacy & Furniture [Good 35%, Fair 49%, Poor 16%] Roads (inc. Shoulders & Gutters) [Good 22%, Fair 60%, Poor 18%] Parking [Good 8%, Fair 78%, Poor 14%] Footpaths & Cycleways [Good 16%, Fair 33%, Poor 51%]


Percentage of bus stops compliant with Disability Discrimination Act standards

Increase 2017: 10% Of the 550 bus stops 56 are compliant

11%

Additional 21 bus stops were made compliant in 2018-2019 77 of 700 bus stops 11%

Inspection and maintenance of Council’s transport infrastructure assets including footpaths, resealing, potholes, grading and shoulders (Number of Customer Service Requests relating to Council transport infrastructure such as Footpath Maintenance (F01), Resealing (R014), Potholes (R017), Grading (R019) and Shoulders (R021))

85% completed 2017: 79% completed 608 requests received - 483 requests completed including Footpath Maintenance 175, Reseal 10, Potholes, 191, Grading 31, Shoulders 76

85%

THRIVE

Economic Development and Tourism

Community satisfaction with Visitor Information centres at Glenbrook and Echo Point

Maintain 2016: 4.00

3.71

Decrease from HIGH to MEDIUM satisfaction. Significant decrease in satisfaction.

Community satisfaction with Caravan Parks at Katoomba and Blackheath


3.35

MEDIUM Satisfaction maintained. Significant decrease in satisfaction.

Community satisfaction with access to local employment opportunities


2.97 LOW Satisfaction maintained. Increase in satisfaction score.


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2018-2019 Result

Comment

Condition of tourism assets [Dec 2014: Good 3%, Fair 89%, Poor 8%]

Economic Development & Tourism Good 17%, Fair 45%, Poor 38%] Echo Point Precinct Good 0%, Fair 100%, Poor 0%] Visitor Information Centres [Good 0%, Fair 100%, Poor 0%]

Maintain 2016: 3.24

Not available

Completion of program maintenance schedules for tourism assets

85% completed 100%

Commercial Activities

Profit and loss statements for commercial activities

Net Revenue Result

Net Revenue result

$527,578 Surplus achieved.


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Major Projects Major Projects are those one-off projects that a have a significant capital component and / or requires significant financial / staff resources / community consultation usually over more than one financial year.

The following table presents the details for the Major Project Milestones for 2018-2019 as at 30 June 2019. *Revised Capital Budget Includes budget carried over from 2017-2018 and adopted& proposed variations.

Service Major Project Milestone 2018-2019 Status at 30 June

2019 Comment

Original Capital Budget 18/19

Revised Capital

Budget* 18/19

Actuals to 30 Jun 2019

Economic Development & Tourism & Sport & Recreation

Southern Scenic Escarpment Program (AWP 1)

Katoomba Falls Kiosk and Park design Funding : - Pay & Display Reserve

- National Stronger Regions Fund Grant

- Metro Green Space Grant

- Special Variation 2015

- Scenic World Lease Fees

R

Approval received from grant provider for variation to project. Works rescheduled to 2019-2020.

1,104,766 639,821 26,493

Echo Point Visitor Information Centre Upgrade Funding : National Stronger Regions Fund Grant

R Refer comment above.

2,094,016 95,415

Walking Track and Lookout upgrades – Echo Point & Katoomba Funding : - Special Variation 2015

C 271,400 271,400 58,782

Total Southern Scenic Escarpment Program 2018-2019 $3,470,182 $911,221 $180,690

Glenbrook Park Upgrade (AWP 2)

Visitor Information Centre (VIC) and Carpark (AWP 2) Funding: Special Variation 2015,National Stronger Regions Fund Grant & Pay & Display Reserve

C 643,614 668,750 656,685

Glenbrook Park Upgrade - Play Equipment (AWP 2) Carry-over (W154-970 )

C 19,715 23,023

Total Glenbrook Park Upgrade 2018-2019 $643,614 $688,465 $679,708

Sport & Recreation

District Park Upgrade – Wentworth Falls Lake parking, boardwalk, toilet block and interpretative elements (AWP 3) Funding: Section 94A reserves, Community Development Grant, Special Variation 2015 & Pay & Display Reserve

C 581,212 392,537 465,906

Sport & Recreation

District Park Upgrade – Blackheath Soldiers Memorial Park (AWP 4) Funding : - Special Variation 2015 NC

Following consultation, master planning time extended. Tender for detailed design out to market.

10,000 55,814 5,023

City Wide Strategic Planning

City Deal Funded Projects (AWP 133) Funding :

- City Deal Grant C 5,000,000 299,225 229,442

Liveability Fund Program - projects C - 20,991 Transport & Public Access

GBMT – Blackheath to Mt Victoria Station (AWP 104) Funding : - Special Variation 2015

- Metro Green Space Grant

NC Carryover request $191,924

400,000 588,928 397,004

Waste & Resource Management

Blaxland Waste Cell B Landfill Liner (AWP 6) Funding: Internal Reserves C 99,774 740,997 740,996


20

Asset Works Program

Asset projects are those projects that involve the planning and construction of new built assets or the improvement of existing built assets, such as footpaths, signage, roads and community halls.

The following table presents the details for the Asset Works Program projects as at 30 June 2019. Status C – Complete, NC – Not complete, R – Rescheduled, W - Withdrawn

Service Asset Works Project Status at 30 June

2019

Comment (for those projects Behind Target)

Original Capital Budget

18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

LEAD Operational Internal Services

AWP 63 Operational Building Dilapidation Reports – Carry-Over (W028-810)

C - 3,225 -

AWP 64A HQ Air conditioning Renewal (W028-842)

C 50,000 44,727

AWP 64B HQ Boiler Renewal (W028-844) C 37,865 59,600

AWP 65 Remove Asbestos from Operational Buildings (W958-170)

C 50,000 170,000 19,306

AWP 120 Truck Wash bay Roof Works - South St Depot – Carry Over (W028-822)

C - 142,852 142,992

AWP 122 Remediate Solitary Restaurant – Carry Over (W028-826)

C

Carryover request $25,055 for urgent repairs (Property Investment Fund)

52,000 105,982 80,927

AWP 132A 16-20 Cambridge St Valley Heights (W958-108)

C 79,668 83,118

AWP 132B Springwood Depot - Cage 3 and Vehicles (W958-110)

C - 12,000

AWP 132D 22 Currawong Ave Valley Heights - Drainage (W958-132)

C 31,889 31,889

70%

30%

% On Target % Behind Target

Total $10,204,782 $3,677,187 $2,719,761

70% of Asset Works Program (including major projects) were Completed as Planned as at 30 June 2019, spending 69% of the revised budget.


21

Service Asset Works Project Status at 30 June

2019

Comment (for those projects Behind Target)


18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

Strategic and Governance

AWP 118 Carbon Projects - Lighting/Voltage Reduction/Solar PV – Carry Over (W956-100)-

NC

Request for tender currently being completed. To Market August 2019. Carryover request $10,790 (Carbon Revolving Reserve)

- 49,438 38,648

Service Asset Works Project

Status at 30 June 2019

Comment (for those projects Behind

Target)


18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

PROTECT Waste and Resource Management

AWP 125 Old Blackheath Tip – Carry Over (W958-134)

C 114,808 187,271

AWP 132C Katoomba Waste Management Facility (W958-114)

C 1,019,273 1,063,190

Water Resource Management

AWP 35 Drainage Upgrade –Wentworth Falls (W819-312)

R

Scope reviewed, resources secured to commence project in July 2019. High Priority project to treat high risk upgrades. Revote request $70,000 (Sv1) & $64,500 (Sv2)

134,500 134,500

AWP 82 Drainage Renewal – Katoomba (W819-320)

R

Budget re-directed to urgent stormwater renewal work Revote request to complete Katoomba $52,506 (Sv1)

70,000 70,000 17,494

AWP 84 Drainage Renewal - Wentworth Falls Lake Dam (W819-322)

R

Delayed due to requirement by NSW Dam Safety Committee for safety review of dam structure. Revote request $300,000 (Sv2)

300,000 300,000

AWP 112 Lapstone Reserve Sewer System (W819-285)

R Revote request $44,111 (Sv2)

200,000 248,007 3,896

AWP 113 Jamison Creek Catchment Stormwater Drainage – Carry Over (W819-300)

C 1,780


22




Target)


18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

AWP 114 Bullaburra to Linden Floodplain Study (W819-310)

NC

Carry-over request $84,986 (Water NSW grant) & $60,000 SV2

60,000 179,169 34,183

CARE Aquatic & Leisure Centres

AWP 42 Lawson Swim Centre Renewal – Carry Over (W028-796)

C 114,750 114,750


AWP 19 Upgrade Blue Mountains Theatre and Community Hub tiered seating – Carry Over (W949-106)

C 196,578 198,588

AWP 20 Implement The Blue Mountains Disability Inclusion Action Plan - Accessibility Upgrades for Parks and Community Facilities (W037-100)

NC

Work commenced on the installation of an adult change table for people with a disability at the Blue Mountains Cultural Centre, and contribution to works at Mt Blackheath to improve accessibility (BBRF project). These projects will be finalised Q2 2019/20 Carryover request $44,000 (Sv2) Complete change table & $10,880 (Sv2) Cultural centre doors Revote request $36,000 (Sv2) Council contribution BBRF

155,000 147,880 27,620

AWP 48 Asbestos Removal in Childcare and Early Childhood Health Centres (W958-168)

C

Works undertaken at Katoomba Out of Hours School Care and Katoomba -Leura Pre School. Carryover request $21,360 (Sv2)

80,000 80,000 14,905

AWP 52 Refurbish Springwood Childcare Centre – Carry Over (W028-802)

C 6,000

AWP 53 Warrimoo Community Hall Repair – Carry Over (W028-814)

C 3,150

AWP 54 Community Hall & Neighbourhood Centre Security System renewal (W028-798)

NC

Works required variation due to conditions. Works to be completed by Q1 2019/20. Carryover request $17,721 (Sv2)

40,000 60,000 42,279

AWP 55 Refurbish/Demolish Lawson Golf Course Machine Shed Works (W028-834)

NC

Contractor engaged, works to be completed Q1 2019/20 Carryover

40,000 40,000 8,243


23




Target)


18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

request $31,757 (Sv2)

AWP 56 Springwood Library Air Conditioning Renewal (W028-730)

R

Works to deferred until 2019/20 to be carried out in conjunction with AWP 150 - Liveabilty Program - Springwood Library Carryover request $26,000 (Sv2) Design & Consultancy Revote request $86,000 (Sv2)

180,000 120,000 8,000

AWP 59 Façade renewal in Community Halls and Childcare Centres(W028-836)

W Funding re-prioritised.

103,000 15,135 10,135

AWP 132 Asbestos and Hazardous Materials Capital Works (W958-100)

NC

Work at Springwood Mechanics Workshop re-scoped, to be completed Q2 2019/20 Carryover request $169,428 (Sv2)

400,000 369,511 140,709

AWP 136 Safer Communities Funding Program (W961-100)

R

Project continuing. Carryover request $469,867 (Safer Communities grant)

- 511,794 41,926


AWP 60 Cultural Heritage Rehabilitation Management Fund (W955-100)

R

Approval received from grant provider for variation to project. Works rescheduled to 2019-2020. Revote request $22,334 (Sv2)

- 22,334 -


AWP 61 Fire Trail Renewal Program (W154-910)

C

Completed planning for program. Revote request $70,473 (Sv2) to deliver program

168,540 168,540 98,067

AWP 92 Construction of Lawson Rural Fire Brigade Station (W028-750)

NC

Completed work on main RFS building. Additional renovations required on the Heritage Cottage , to be completed in Q2 2019/20 Carryover request $43,982 (RFS contribution)

600,000 784,233 740,251


24




Target)


18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

AWP 95 Blaxland RFS Demolish & Rebuild NC

Completed planned work. RFS have requested minor additional works, to be completed in Q1 2019/20 Carryover request $38,739 (RFS contribution)

1,000,000 1,208,430 1,169,691

Sport & Recreation

AWP 30 Pitt Park Football Building Replacement (W154-1002)

R

Additional funds required for construction. Carryover request $12,937 (Sv2)

600,000 100,000 87,063

AWP 67 Pit Toilet/ Sewerage renewal at Mount Blackheath (W028-838)

C 108,000 - -

AWP 67A Pit Toilet/ Sewerage renewal at Mount Blackheath - BBRF Grant (W962-130)

C - 153,000 164,601

AWP 70 Natural Area Visitor Facilities - Very High Risk Mitigation (W154-1014)

C

Minnehaha rock stabilisation complete and track reopened

241,485 241,485 241,485

AWP 72 Public Toilet Renewal in Katoomba - Based on Public Toilet Review (W154-1006)

C Carryover request $7,808 (Sv2) two year project

140,000 40,000 24,966

AWP 73 Play Equipment Renewal - As per independent safety audit and in line with Play Strategy (W154-260)

C

88,920 130,784 102,961

AWP 75 Renewal of Irrigation System at Tom Hunter Park (W154-1008)

C 250,000 250,000 177,813

AWP 76 Additional program of Minor Works in Sports Grounds e.g. cricket nets (W146-100)

C

Works carried out across BMCC Sportsgrounds including Lawson Oval, Melrose Park, Warrimoo oval

20,000 23,251 25,133

AWP 77 Minor Item Infrastructure Renewal in Sports Fields e.g bubblers & seats (W154-1010)

C Identified program of works completed

23,800 23,800 -

AWP 97 Sports Council Minor Capital Works (W140-100)

C Works identified by BM Sports Council completed.

- - 8,518

AWP 97A Sports Fee - Council endorsed projects (W160-100 )

C Works identified by BM Sports Council completed.

- - 8,177

AWP 98 Restoration rockwork Wilson Park Lawson (W154-440)

C Project completed - 5,400 4,335

AWP 106 Knapsack Park Glenbrook Amenities Bldg Design (W154-990)

NC

Following Federal Election commitments, this project is being re-scoped. Quote received and approved for design. Carryover request $48,550 (Sports Field fees)

- 48,550 -


25




Target)


18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

AWP 107 Warrimoo Oval Carpark Upgrade (W154-992)

R Work rescheduled to later years.

209,400 209,400 -

AWP 126 GBMT- Leura Cascade to Scenic World (W154-998 )

NC

Final design due end July 2019. Carryover request $568,497 (Metro green space grant)

- 579,891 11,394

AWP 131 Natural Area Visitor Facilities - Local Walking Track Program (W154-940)

C 300,000 300,000 223,772

AWP 138 Melrose Park Cricket Wicket Reconstruction Works (W154-1012)

C - 21,220 21,220

Burials & Ashes AWP 43 Cemetery Asset Renewal Program

(W596-120) C

Identified program of works completed

57,000 57,000 42,973

City Presentation AWP 7 Implement Leura Tourist Bus

Strategy Stage 1 (W736-510) NC

Delayed for further consultation and development of options.

- 34,240 15,950

AWP 13 Implement Hazelbrook Masterplan: Village Centre Carpark Upgrade (W923-258)

NC

Planned work delayed and adjusted to align with the 2019-2020 programmed works and budget allocation.

387,976 3,777

AWP 13 Implement Hazelbrook masterplan Village Centre Carpark Upgrade [Carryover]

NC

Refer comment above. Carryover request $18,717 (S7.12)

- 27,194 4,700

AWP 15 Springwood Town Centre Parks - Upgrade of Manners Park and establishment of Parklet (W154-982 )

R

Delivery reprogrammed to 2019-2020 as a result of archaeological investigations. Carryover request $5,000 (General Fund)

60,000 5,000 -

AWP 16 Implement Blackheath Town Centre Masterplan - Parking Improvements (W736-514)

C Incorporated into AWP 17 and AWP 17A

-

-

-

AWP 17 Implement Blackheath Town Centre Masterplan (W923-260)

NC

Engagement with Councillors, Blackheath Alliance and community in Quarter 1 2019-2020

300,000 -

-

AWP 17A BBRF Blackheath Town Centre Revitalisation Grant projects (AWP17A)

C Refer comment above.

- 155,000 59,002

AWP 44 Carrington Place Renewal (W923-254)

C -

- 61,912 64,772

AWP 46 Katoomba Civic Place Renewals Works - lights, flooring, toilets (W028-794)

C -

- 31,943 43,726

AWP 72A Toilet Refurbishment - town centres as identified by 2016/17 building condition reports (W923-262)

NC

Quotes received and negotiation is in progress. Project to be completed in Q1 19/20. Revote

99,000 99,000


26




Target)


18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

request $99,000 (Sv2)

AWP 72C Glenbrook Park Toilet and Leura public toilet improvements (W028-840)

NC Leura Public Toilet to be completed Q1 2019/20

140,000 40,000 55,106

AWP 130 Civic arcade Katoomba Public Domain Improvement Works (W028-830)

R Funds allocated in 2019/20

540,000 540,000 -

MOVE Transport & Public Access AWP 9 Cycleway Construction Program

from Woodford to Linden per Bike Plan 2020 (W736-516)

C

Revote request $44,628 (Sv2) to be transferred to Blackheath to Mt Vic GBMT AWP 104

122,365 244,730 178,861

AWP 10 Traffic Barrier Construction Program based on Risk Assessments (W738-100)

C

Contract awarded for renewal of existing road safety barriers Carryover request $159,812 (Sv2)

225,908 225,908 127

AWP 31 Transport Upgrades to improve Compliance and Safety (W736-522)

C 110,000 110,000 94,450

AWP 32 Footpath Upgrade Program based on PAMP (W463-380)

NC

Requires rectification works are pending completion of Telstra pits and subsequent rectification. Project to be completed n Q1 2019/20 Carryover request $153,604 (Sv2)

230,635 293,123 139,519

AWP 78 Road Renewal and Reseal Program (W735-100)

C 3,160,414 3,160,414 3,095,770

AWP 79 Traffic Facilities Renewal (W736-508)

NC

Contract awarded. Works to be completed in Q2 2019/20 Carryover request $204,520 (Sv2)

284,200 284,200 1,836

AWP 80 Bridge Renewal based on Inspection Reports (W732-153)

C

Revote request $71,398 (Sv2) to complete renewal works.

300,000

403,794

332,396

AWP 81 Footpath Renewal based on Inspection Reports (W463-200)

NC

Footpath renewal works to be completed in Q1 2019/20 Carryover request $6,048 (Sv2)

453,000

453,000

446,952

AWP 121 Off Road Shared Path Penrith and Lower Blue Mtns (W736-520)

C -

- 71,915 87,857

AWP 169 Pedestrian Safety Program (W736-524)

C -

-

-

47,500

THRIVE


27




Target)


18/19

Revised Capital

Budget* 18/19

Capital Expenditure

to 30 Jun 2019

Economic Development & Tourism

AWP 134 Visitor Infrastructure Investment Strategic Plan Capital works (W960-100)

NC

Report on Parking Precinct Plans will be presented to Council in August 2019.

396,720 - -

TOTAL $12,481,863 $15,010,165 $10,252,896 *Includes budget carried over from 2017-2018 and adopted variations. Excludes Major Project milestones with a capital component and IT assets, and plant and equipment. SV = special variation.


28

Other Operational Plan Actions

The Council has committed to delivering a wide range of actions and projects through its service delivery commitments.

90% of Operational Plan actions were complete as at 30 June 2018. The Council committed to deliver 218 individual actions in 2018-2019. Of those, 18 (or 10%) were Not complete as planned, and 30 have been Rescheduled, 5 projects withdrawn. Only those projects that were Not complete as planned, Rescheduled or Withdrawn are presented below. The Annual Report will provide more details on all 2018-2019 actions and projects.

The following table presents the details for the 10% of Operational Plan actions that were Not complete as planned, and details for those projects that were Withdrawn / Rescheduled as at 30 June 2019. Actions that have been Withdrawn or Rescheduled are not included in the calculations.

Summary of Operational Plan Actions – Behind Target (BT), Withdrawn (W), Rescheduled (R) ID Operational Plan Action Status

at 30 June 2019

Comment

LEAD

D1102.05 Update Property Disposal and Investment Program (FFtF 4b)

R Rescheduled to 2019-2020

D1115.01 Develop and progressively implement digital forms and digital end to end business processes

NC Resources reallocated to other priorities. Rescheduled to 2019-2020.

D1115.02 Progressively digitise development related microfiche records for their long term preservation and use

R Resources reallocated to other priorities. Rescheduled to 2019-2020.

D1206.02 Commence a review of corporate performance measurement and reporting

NC Awaiting release of OLG guidance / draft indicators. Performance measures included in Improvement Strategy and Action Plan.

D1211.02 Implement phase 2 of the Corporate Website Improvement Project to serve contemporary information, customer service, marketing and e-business needs

NC Web hosting and Digital Asset Library work delayed to 2019/20 due to Organisational Priority Projects and staffing changes.

90%

10%



29

ID Operational Plan Action Status at 30 June 2019

Comment

D1211.03 Strengthen the use of digital and social media to increase community access to information and engagement opportunities

NC Utilised new digital tools on digital online engagement platform. Video Content Project incomplete due to staffing changes.

D1212.01 Complete the review and update of Service Dashboards – defining affordable levels of service provision (FFtF 5a)

NC Resources reallocated to other priorities. Rescheduled to future years.

D1222.02 Commence organisational policy review project NC The organisational Policy review project is ongoing

D1302.01 Define affordable levels of service within Long Term Service Plans (FFtF 2c)

R Work to commence in 2019-2020 on revised Service Plans.

D1311.01 Implement the endorsed Asset Management Improvement Program (FFtF 2d) (SV)

NC Portion of Asset Management Improvement Program projects completed or underway. The program is being re-scoped for 2019-2020 delivery.

D1403.01 Develop the Priority Infrastructure Strategic Plan (FFtF 6c) R Programmed for 19/20

D1404.01 Engage with key State Agencies and adjoining councils to improve alignment of planning and reporting relative to the City of Blue Mountains (FFtF 6e)

W Objective included in the Community Engagement strategy for the update of the Community Strategic Plan.

D1411.03 Engage, contribute and support the objectives of the Regional Strategic Alliance’s (RSA) Asset Management Program

R Asset Management alliance business case developed, further progression subject to Council endorsement.

D1411.04 Contribute to the achievement of regionally agreed objectives with an 18/19 focus on Asset management strategy and planning, Asset management processes and Workforce knowledge management.

NC Not yet commenced. Subject to outstanding Council adoption of proposed alliance actions.

D1411.07 Achieve agreed objectives for the Regional Strategic Alliance (RSA) Internal Audit Program between Hawkesbury City Council and Blue Mountains City Council.

NC See above comment.

D1411.08 Consider future opportunities for Penrith City Council to become involved in the Internal Audit Program.

NC See above comment.

PROTECT

D2111.01 Support the implementation of actions from the Water Sensitive City Strategy

NC Adoption of Water Sensitive City Strategy has been reprogrammed to Q1 2019/20

D2112.01 Develop the Urban Storm Water Catchment Strategy R Programmed for 2019/20

D2113.01 Implement priority actions identified in Floodplain Risk Management Plans

NC Requirements for survey & design resourcing meant this target was not achieved. Due to be completed end Q1 2019/20

D2211.03 Optimise capacity at the Blaxland Resource Recovery Facility

R Alternate cover business case prepared. Next step is to seek EPA approval and conduct procurement process before commissioning.

D2401.01 Develop and implement partnership approaches to co-manage Country with Traditional Owners and other Aboriginal people focusing on cultural knowledge and economic outcomes

NC Delayed recruitment of the Connecting to Country Project Officer meant this action was not delivered

CARE

D3101.01 Implement and Monitor the Community Facilities Strategy R Rescheduled, due to be reported to Council Q2 2019/20.

D3101.02 Implement the activation plan for the Katoomba Civic Place renewal works

R

D3101.03 Progressively implement findings from the review of community building management and user agreements

R


30


Comment

D3101.04 Develop a Masterplan and feasibility assessment for the Winmalee Community Precinct.

R

D3122.01 Refer to Strategy 2.1b R Programmed for 19/20

D3131.01 Work in partnership with State and non-government agencies to finalise and implement priority actions identified in the Child and Youth Plan

R Ongoing work with the Stronger Families Alliance, report due Q2 2019/20.

D3201.01 Deliver accessibility improvement program to meet Disability Discrimination Act standards and best practice

NC Work commenced on the purchase and installation of an adult change table for people with a disability at the Blue Mountains Cultural Centre, and contribution to works at Mt Blackheath to improve accessibility, identified in the DIAP. These projects will be finalised Q2 2019/20

D3203.03 Commence preparation of a Camping Strategic Plan (FFtF 4c)

R Rescheduled to 2019/20. Guidelines currently being prepared.

D3401.01 Implement solar energy system for the Hub building W

D3411.01 Design a selection of library programs that facilitate learning upon completion of the BMCC Libraries service strategy

R Finalisation of the Library Strategic Plan rescheduled to 2019/2020

LIVE

D4101.01 Continue preparation of Blaxland Town Centre master plan and implement as appropriate

R Project put on hold pending finalisation of Local Strategic Planning Statement

D4101.02 Respond to recommendations from master plans for LEP and DCP provisions -

W Dependent on completion of Blaxland Town Centre Masterplan

D4101.03 Scope a master plan for the Katoomba Town Centre R Project put on hold pending finalisation of Local Strategic Planning Statement

D4102.01 Continue to investigate land use options for burials and ashes.

R

D4104.02 Commence preparation of a master plan for the Former Katoomba Golf Course

R Project put on hold pending finalisation of Local Strategic Planning Statement

D4104.03 Respond to recommendations from master plans for LEP and DCP provisions

W Dependent on completion of Lawson

Crown Lands and Former Katoomba Golf Course Masterplans

D4201.02 Removal of graffiti on Lennox Bridge by a specialist graffiti removalist

W

D4201.06 Implement priority major sites improvement actions identified in master plans

NC Consultant appointed June 2019 to prepare projects for Lawson Crown Lands.

D4332.01 Commence implementation of the Heritage Strategy R On hold pending outcomes of independent community review of mechanisms for community involvement in Heritage. Report to be presented at the July 2019 Council meeting.

D4333.02 Commence mapping Town Centre assets (non civil infrastructure) and garden beds.

R Reprogrammed for 2019/20 due to resourcing constraints

MOVE

D5141.01 Implement the Blue Mountains City Council Citywide Parking Strategy 2017-2021 Prioritise traffic management and parking in town centre master planning (SV)

NC Report on Parking Precinct Plans to be presented at the August 2019 Council meeting.

THRIVE

D6101.01 Implement priority actions as identified in the Economic Strategy (SV)

R Economic Statement adopted, Economic Strategy due for public exhibition Dec 2019.


31


Comment

D6101.02 Engage with the Blue Mountains Economic Enterprise on economic initiatives to attract industry and employment to the City.

R Economic Statement adopted, Economic Strategy due for public exhibition Dec 2019.

D6121.01 Complete the Blue Mountains Events Strategy NC Due for public exhibition September 2019

D6131.01 Develop and implement an Aboriginal on Country economic development plan

R

D6201.01 Refer strategy 6.1.a R Economic Statement adopted, Economic Strategy due for public exhibition Dec 2019.

D6221.01 Liaise with the BMEE to develop projects to leverage off the unique identity of the Blue Mountains as a centre of culture, creativity and the arts Blue Mountains as a centre of culture, creativity and the arts

R

D6221.02 Promote Blue Mountains arts tourism and festivals through the Blue Mountains Events Strategy

NC Events Strategy not complete, due for public exhibition September 2019.


D6301.01 Develop the External Agencies Infrastructure Plan (SV) R Reprogramed for 2019/20

D6302.01 Research options and develop recommendations on the operation of Council owned tourist parks for Council endorsement (FFtF4d)

R An Expression of Interest process (to engage consultants) to commence in 2019/2020.


Note: Actions that have been rescheduled or withdrawn are not included in the calculations


32

Fit for the Future Action Plan The Council was declared Fit for the Future in October 2015 based on the submission and action plan provided to IPART in June 2015. The action plan was developed to achieve Fit for the Future targets by 2019/20.

The following table presents the status of the milestone actions for 2018-2019 as at 30 June 2019. The Status of actions are Complete, Withdrawn or Rescheduled.

FFtF 4 year Actions 2018-19 Milestones Status at 30 JUNE 2019

AVIOD SHOCKS

Action 1.a. Proactively implement the Long Term Financial Plan and the Councils Fit for the Future Improvement Plan.

Achieve Fit for the Future ratios in 2019-2020, then maintain or improve ratios

Drive implementation of the Council’s Six Strategies for Financial Sustainability (DPOP 1.1a)

Complete

Action 1.b.

Develop annual financial targets for the next 10 years

Set annual Fit for the Future targets for 2017-2018 to 2019-2020

Increase long term financial impact assessment in Council and Internal Management decision making (DPOP 1.2a)

Complete

Action 1.c.

Develop Corporate Risk Register and undertake regular reporting

Develop Corporate Risk Register to target high risk renewal expenditure

Enhance the Council’s Enterprise Risk Management (ERM) (DPOP 1.2.c)

Complete

Action 1.d.

Implement best value spending of SV2 funds to reduce operating costs and increase income , while meeting Community/City needs Implement best value spending of SV2 funds to meet Fit for the Future ratios

Deliver initiatives to ensure that the expenditure of SV2 and other Council funds reduces long term costs and increases income (DPOP 1.1.a)

Complete

92%

8%


92% of Fit of the Future Action Plan 2018-19 milestones were complete as at 30 June 2019. The Council committed to deliver 32 milestone actions in 2018-2019. Of those 2 were not complete as planned, 5 were rescheduled and 3 were withdrawn.


33


BALANCE THE BUDGET Action 2.a

Align annual budgeting to LTFP Align decision making to LTFP plan to achieve a positive operating performance ratio

Strengthen alignment of budgeting to LTFP, Service Plans and Asset Management Plans (DPOP 1.1.a)

Complete

Action 2.b

Implement improvement initiatives that reduce expenditure and/or increase income Implement improvement initiatives to achieve decreasing operating expenditure per capita

Deliver Business Improvement projects and mentor organisational business improvement through the established Business Improvement Program Office (DPOP 1.1.b)

Complete

Promote electronic delivery of all rating correspondence (DPOP 1.1.b)

Complete

Action 2.c

Define and implement affordable levels of service within available revenue

Model, define and review affordable levels of service within available revenue to improve operating performance ratio

Define affordable levels of service within Long Term Service Plans (DPOP 1.3.a)

Rescheduled

Action 2.d

Review asset lifecycle costs, valuation, useful life and depreciation

Improve asset lifecycle costs to improve the asset renewal and asset maintenance ratios

Review the Council’s depreciation and useful life assessment and valuation in the context of updated Asset Condition assessments and Asset Management Plans (DPOP 1.1.a)

Complete

Review and make improvements to the integration of the Finance Asset Accounting and Asset Management Plans (DPOP 1.1.a)

Complete

Implement the endorsed Asset Management Improvement Program (DPOP 1.3.b)

Not Complete

Action 2.e

Consolidation and/or reconfigure provision of assets/services to reduce costs and increase income

Consolidate and/or reconfigure provision of assets/services to improve asset renewal and asset maintenance ratios

Continue a strategic review of services to inform decision making and priorities (DPOP 1.3.a)

Withdrawn

Action 2.f

Prioritise funding of high risk asset renewal

Prioritise funding of high risk asset renewal to reduce infrastructure backlog ratio

Enhance the Council’s Enterprise Risk Management (ERM) (DPOP 1.2.c) {same as 1.c}

Complete

MANAGE DEBT AND INVESTMENTS RESPONSIBLY

Action 3.a

Cease future loan borrowings unless supported by business case Cease future loan borrowings unless supported by business case to improve debt servicing ratio

Implement Borrowings policy (DPOP 1.1a)

Complete

Action 3.b.

Reduce existing loan debt through refinancing

Reduced operating expenditure requirements

that improve debt servicing and operating

performance ratios

Complete


34


Action 3.c Direct Surplus cash funds to reduce borrowings where appropriate Further reduce borrowings to improve borrowing capacity, reduce debt servicing costs and improve debt servicing ratio

Complete

Action 3.d

Review borrowing capacity annually Review borrowing capacity annually to ensure staying within debt servicing benchmark

Complete

Action 3.e

Implement the Council’s Investment Policy and Strategy Manage Investments to maximise returns and achieve positive operating performance ratio

Implement Investments policy (DPOP 1.1a) Complete

INCREASE INCOME

Action 4.a Review revenue strategies to ensure revenue is maximised in an equitable and business-like manner Review revenue strategies to maximise revenue to achieve positive operating performance ratio and improve own source revenue ratio

Update Revenue Strategies (DPOP 1.1.a) Complete

Action 4.b Continue to Implement Property Disposal and Investment Program Increase income from Property Disposal and Investment Program to achieve positive operating performance ratio and improve own source revenue ratio

Update Property disposal and investment program (DPOP 1.1.a) Rescheduled

Action 4.c

Investigate and implement other revenue

generating initiatives

Increase revenue generating initiatives to achieve positive operating performance ratio and improve own source revenue ratio

Commence implementation of enforcement recommendations arising from the adopted Visitor Infrastructure Investment Strategic Plan (DPOP 6.4.a)

Complete

Commence preparation of a camping strategic plan (DPOP 3.2.a) Rescheduled

Action 4.d

Develop and implement a strategy and business planning for commercial activities Increase income from commercial activities to achieve positive operating performance ratio and improve own source revenue ratio

Research options and develop recommendations on the operation of Council owned tourist parks for Council endorsement (DPOP 6.3.a)

Rescheduled


35


REVIEW AND ADJUST SERVICES Action 5.a Continue to engage community on affordable and acceptable service levels Define service levels in 2019-2020 to improve operating performance and infrastructure backlog ratios

Complete the review and update of service dashboards - defining affordable levels of service provision (DPOP 1.2.b)

Not Complete

Action 5.b Implement strategic review of services provided by the Council overall Strategic review of services improves operating performance ratio

Continue a strategic review of services to inform decision making and priorities (DPOP 1.3.a)

Withdrawn

Action 5.c Undertake best value reviews of individual services as required Individual service reviews reduce expenditure to improve operating performance ratio

Financial Reporting & Analysis for in-depth Service Reviews (DPOP 1.3.a)

Complete

Action 5.d Develop and align Service and Asset Plans that guide best value service provision Develop financial projections for each service by 2018-2019 to ensure LTFP can be achieved and so can a positive operating performance ratio

Review and strengthen the Council’s Service Planning so that it guides and supports Asset Management Planning and best value service provision (DPOP 1.3.a)

Complete

INCREASE ADVOCACY AND PARTNERSHIPS

Action 6.a Lobby Federal and State Governments for fairer distribution of national income Lobby to increase income and improve operating performance ratio

Continue the annual advocacy and partnership plan (DPOP 1.1.a) Complete

Action 6.b Lobby State Government on rising impost of emergency services Lobby to minimise expenditure increases and improve operating performance ratio

Develop and maintain formal relationships and supporting arrangements between Council and the Rural Fire Service and State Emergency Service (DPOP 3.3.b)

Complete

Action 6.c Continue to Advocate against cost shifting to Council from other levels of Government. Advocate against expenditure increases and improve operating performance ratio

Develop the Priority Infrastructure Strategic Plan (DPOP 1.4.a) Rescheduled

Action 6.d Implement Regional Strategic Alliance with Penrith and Hawkesbury Councils Implement Regional Strategic Alliance to achieve enhanced advocacy and regional planning outcomes reduce operating expenditure per capita

Implement relevant components of the Regional Strategic Alliance Business Plan for 2018-2019 (DPOP 1.4.b)

Complete


36


Action 6.e Develop Partnerships with other agencies, community and business sector Develop partnerships with other agencies to create efficiency savings and reduce operating expenditure per capita

Engage with key state agencies and adjoining Councils to improve alignment of planning and reporting relative to the City of the Blue Mountains (DPOP 1.4.a)

Withdrawn

.

37


Quarterly Budget Review Statement by the

Responsible Accounting Officer

In accordance with the Local Government Act, 1993 and the provisions of clause 9 of the Financial Management Regulation, a budget review statement and revision of estimates must be completed and submitted to the Council for formal adoption at the end of each financial quarter (except June quarter). This report must include details on the general financial position of the Council and if this position is regarded as unsatisfactory, also include recommendations for remedial action. Blue Mountains Council has decided to continue to provide a Quarter 4 Budget Review Statement to summarise the closing financial position, notify Council of the carry-overs, for work that have commenced or was contracted before year end, and request re-vote of budget into 2019-2020 for works not yet commenced but considered prudent to continue. The following information details the budget review statement to the end of June 2019. The Office of Local Government has issued guidelines for the minimum requirements of Quarterly Budget Review Statements. The statements included in the budget review statement by the Responsible Accounting Officer comply with the minimum requirements of the Office of Local Government.

Operating Performance Result The Council’s Operating Performance Result is a core measure of financial sustainability and a Fit for the Future benchmark. It is defined as Operating Revenue less Operating Expenditure (including depreciation and excluding capital items), and provides an indication of whether the Council has sufficient revenue to meet ongoing expenditure requirements. The Council’s long term goal, as included in Councils Resourcing Strategy, is to create an annual operating surplus equivalent to capital funding requirements, to ensure Councils Cash Budget is balanced and Councils operating position is financially sustainable over the longer term. The Fit for the Future Operating Performance Ratio, was originally projected to meet targets and be positive in 2019-2020 (based on a three year average).

In 2018-2019, the Council’s preliminary Operating Performance Result excluding Capital Items is a $5.98M deficit (before end-of-year adjustments which are yet to be finalised and audited). The deficit includes $4.48M of prepaid income for the 2019-2020 Financial Assistance Grant that was 50% prepaid.

The deficit is unfavourable when compared against the 2018-2019 original budget (surplus $882 thousand). The deficit is mostly due to a $3.2M increase in depreciation as a result of revaluations of assets included in the 2017-2018 financial statements, and is a reflection of the continuing challenges faced by the Council during the year.

The Operating Result was impacted by the following variations from original budgeted expenditure:

$3.2M additional depreciation as a result of revaluations of assets;

$1.8M unplanned expenditure for asbestos remediation, funded from reserves;

$650K reduction in VIISP income, $320K reduced Landfill Fee income; and

$480K in additional Workers Compensation insurance costs.

The final end of year results will be presented by the external auditors at the October 2019 Council Meeting.

38


Cash Budget Result - Working Capital Result The final interim Working Capital position as at 30 June 2019 is $1.7M (see table below). This result is within the Council benchmark optimum range of $1.7-$1.9M. It is considered prudent that the Council continues to maintain an optimal working capital position as a source of contingency.

It is proposed to transfer $625K in surplus cash to the Risk & Debt Reduction Reserve to provide for unforeseen financial impacts, with the transfer to be completed following finalisation of the financial statements. The following reconciliation illustrates the interim Working Capital position as at 30 June 2019.

Working Capital Position $’000

Actual Working Capital Result – 1 July 2018 1,350

Original Budget 2018-2019 Forecast Improvement in Working Capital 0

September 2018 Review (net result) 0

December 2018 Review (net result) 0

March 2019 Review (net result) 0

June 2019 Review (net result) 0

Revised Interim Working Capital Result – 30 June 2019 1,350

Add: Surplus working capital funds above Revised Interim Working Capital Result 975

Interim Working Capital Result – 30 June 2019 2,325

Less: Transfer to Debt reduction & Risk reserve to provide for unforeseen financial impacts -625

Final Interim Working Capital Result – 30 June 2019 (after transfers to reserves) 1,700

Operational Budget – Significant Variations The following budget variations that occurred in this review are summarised in the table below.

Significant Variations for Operational Budget 2018-2019 Favourable $

Unfavourable $

Early payment of half of the Financial Assistance Grant for 2019-2020 (transferred to reserve)

4,485,068 -4,485,068

Re-allocation of funds for Community Access Bus from capital program to Fleet Services budget

60,000 -60,000

Transfer of funds for vehicle replacement to reserve due to deferral of vehicle purchases

180,000 -180,000

Gross Budget Variation as at Quarter 4 4,725,068 -4,725,068

NET TOTAL 0

Asset Works Program (AWP) – Significant Variations The following variations relating to asset projects are recommended.

Significant Variations for AWP Budget 2018-2019 Favourable $

Unfavourable $

Re-allocation of funds for Community Access Bus from capital program to Fleet Services budget

60,000 -60,000

Gross Budget Variation as at Quarter 4 60,000 -60,000

NET TOTAL 0

39


Asset Works Program Summary $’000

2018-2019 Original Budget $22,687

Total 2018-2019 Revised budget* $18,747

Total Dollars spent as at 30 June 2019 $12,973

Percentage spent 69%

Percentage of asset works projects complete** 70%

*Includes funding carried over from 2017-2018, adopted variations and capital funding for Major Projects. Excludes IT assets and plant and equipment. **Projects that have been rescheduled or withdrawn have been excluded from this calculation

Carry Overs Carry overs from 2018-2019 represent unspent budget that will be added to the 2019-2020 budget and are made up of three components:

Revotes are required to be approved by the Council for unspent budget that is requested for spending in 2019-2020.

Carry overs for works that are in progress and committed to be spent at year-end or under contract to be spent, and are to be carried forward for finalisation in the following year.

Carry overs of funds that are funded by Specific Purpose Grants and Contributions and Restricted Assets.

Following are details of the budgets recommended for carry over from 2018-2019 to 2019-2020. Only the Revenue funded component impacts on Working Capital. If budgets funded by grants and contributions are not approved for carry over the sums involved are required to be refunded.

The revised estimated Working Capital position has been prepared on the basis of the following operating budget revotes being approved for carry over:

(1) Operating Expenditure - Revotes $158,079 (2) Operating Expenditure - Carry Forwards $433,409 (3) Specific Purpose Grants and Contributions and Restricted Assets $438,770 (4) Asset Works Program - Carry Forwards $3,402,933

(1) Operating Budget – Revenue Funded Revotes

Revotes need to be approved by Council to enable them to be added to the 2019-2020 budget.

$

Cultural & Community Services

Events Management - Community Events Security Upgrade (Funding: SV2 Op) 60,000

Environmental & Planning Services

Connecting to Country (Funding: SV2 Op) 22,079

Strategy & Corporate Services

Asset Data Collection (Funding: SV2 Op) 61,000

Office of the CEO

Procurement Support 15,000

Total 158,079

40


(2) Operating Budget – General Revenue Funded Carry Overs

Works that do not need Council approval as work has commenced or was contracted before year end.

$


Economic Development - Winter Magic Event Strategy and Management Plans 26,000

Community & Facilities Planning - Place Based Planning Framework 30,664

Economy, Place & Infrastructure Services

City Planning Administration - Place Based Planning Framework 9,222

Property Investment and Administration - 16 Cambridge Street, Valley Heights 39,406

Property Investment and Administration - 170-174 Leura Mall, Leura 87,755

Community Buildings - Hazelbrook Woodford Child Care Centre 40,230

Workplace Strategy - Operational Building Renewal 60,960

Infrastructure Planning Operating Costs 2,218

Survey Data Licence Subscription 3,993

Street Lighting Design and Installation 132,961

Total 433,409

(3) Specific Purpose Grants, Contributions & Restricted Assets Funded Carry Overs

Operating Budget Carry Overs

$


Economic Development - Economic Initiatives (Funding: SV2 Op) 4,035

Community Development - Social Research Data Management (Funding: SV2 Op) 827

Community Development - Local Drug Action Team (Funding: Grant) 15,450

Community Development - Community Drug Action Team (Funding: Grant) 500

Community Development - Springwood Lift & Change Facility (Funding: Grant) 9,600

Community Development - Grandparents Grant (Funding: Grant) 3,152

Economy, Place & Infrastructure Services

Equipment Maintenance & Supplies (Funding: SV2 Op) 4,308

Wentworth Falls Lake Dam Safety Review (Funding: SV2 Op) 73,533

Community & Facilities Planning - Crown Lands - Plans of Management (Funding: Grant) 88,213

Skyway Lease Funding for Walking Tracks (Funding: Skyway Lease income) 36,559

Road Safety Program - Child Restraint Checking, Graduated Learners Scheme (Funding: RMS Contributions)

5,145

Road Safety Program - Fatigue & Speed Projects (Funding: RMS Contributions) 7,000

Recreation Facilities Management Administration (Funding: Grant) 23,077

Traffic Study Katoomba (Funding: RMS Contributions income) 5,983

Traffic Study Springwood (Funding: RMS Contributions income) 16,160

Environmental & Planning Services

Gully Plan of Management (Funding: Grant) 15,713

Pulpit Hill Precinct Grant (Funding: Grant) 73,061

Museum Advisor (Funding: Grant) 3,500

Nature Based Recreation Works (Funding: Nature Based Recreation Fees Income) 52,953

Total 438,770

41


(4) Asset Works Program Carry Overs Reserve, grant and contribution funded.

$

Blaxland Rural Fire Brigade Station (Funding: NSW RFS) 38,739

Lawson Rural Fire Station (Funding: NSW RFS) 43,982

Remediation of Solitary Restaurant Katoomba (Funding: Property Investment Fund) 25,055

Knapsack Park Glenbrook Amenities Building Design (Funding: Sports Fields Fees) 48,550

GBMT - Leura Cascades to Scenic World (Funding: Metro Green Space Grant) 568,497

Bullaburra to Linden Floodplain Study (Funding: Water NSW Grant) 84,986

Hazelbrook Masterplan Implementation (Funding: Section 7.12) 18,717

Carbon Projects (Funding: Carbon Revolving Reserve) 10,790

Echo Point Security Upgrade (Funding: Safer Communities Grant) 469,867

Cycleway Construction Program - GBMT Blackheath to Mt Victoria (Funding: SV2 AWP) 44,628

Springwood Library Refurbishment (Funding: SV2 AWP) 112,000

MMNC Security System Renewal (Funding: SV2 AWP) 17,721

Lawson Golf Course Machine Shed (Funding: SV2 AWP) 31,757

Disabled Access to Community Buildings (Funding: SV2 AWP) 10,880

Disability Inclusion Action Plan - Cultural Centre Upgrade (Funding: SV2 AWP) 44,000

Disability Inclusion Action Plan for BBRF Mt Blackheath (Funding: SV2 AWP) 36,000

Pitt Park Football Building Replacement (Funding: SV2 AWP) 12,937

Parks & Sports Ground Toilet Works (Funding: SV2 AWP) 7,808

Springwood Town Centre Parks (Funding: General) 5,000

Footpath Replacements (Funding: SV2 AWP) 6,048

Pedestrian Access Mobility Program (Funding: SV2 AWP) 153,604

Cemeteries Renewal (Funding: Cemetery Fees) 10,000

Bridge Renewal Program (Funding: SV2 AWP) 71,398

Traffic Facilities & Barrier Renewal Construction (Funding: SV2 AWP) 204,520

Road Safety Guardrails Construction (Funding: SV2 AWP) 159,812

Bullaburra to Linden Floodplain Study (Funding: SV2 AWP) 60,000

Asbestos Removal from Childcare Buildings (Funding: SV2 AWP) 21,360

Asbestos and Hazardous Materials Project (Funding: SV2 AWP) 169,428

Fire Trail Renewal (Funding: SV2 AWP) 70,473

Drainage Renewal Katoomba (Funding: SV1 AWP) 52,506

Wentworth Falls Lake Dam Renewal (Funding: SV2 AWP) 300,000

Wentworth Falls Drainage Upgrade (Funding: SV1 AWP) 70,000

Wentworth Falls Drainage Upgrade (Funding: SV2 AWP) 64,500

Lapstone Reserve Sewer System (Funding: SV2 AWP) 44,111

Toilet Painting & Fit Out (Funding: SV2 AWP) 99,000

AWP Heritage Asset Rehabilitation (Funding: SV2 AWP) 22,334

GBMT - Blackheath to Mt Vic (Funding: BBRF grant) 85,000

GBMT - Blackheath to Mt Vic (Funding: Metro Green Space grant) 106,924

Total 3,402,933

42


Cash Flow The Council’s cash and investments position has increased by $1.3M from a balance of $29.3M at 31 March 2019 to a balance of $30.6M at 30 June 2019, as presented below. This increase is in line with the expected cash position for the end of the financial year. The graph below displays:

The level of cash each quarter from March 2016 to June 2019.

The movement up or down for each quarter.

Loan Position The Council has utilised borrowings to fund major infrastructure critical to the ongoing community health, environmental protection, cultural and economic vitality and overall sustainability of the City. Examples of such projects include the Waste and Resource Recovery facilities at Katoomba and Blaxland, Katoomba Library and Cultural Centre, Lawson Town Centre relocation, Blue Mountains Theatre and Community Hub in Springwood as well as funding the City’s road renewal program. Borrowing for these major infrastructure projects was considered appropriate and prudent as it provides for intergenerational equity in sharing the cost of these projects. Council’s loan balance as at 30 June 2019 was $28.5M, which is $300K lower than the budgeted year-end balance of $28.8Mthat is illustrated in the graph below.

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

(10,000)

(8,000)

(6,000)

(4,000)

(2,000)

0

2,000

4,000

6,000

8,000

10,000Mar'16Jun'16Sept'16Dec'16Mar'17Jun'17Sept'17Dec'17Mar'18Jun'18Sep'18Dec'18Mar'19Jun'19

$'00

0 Q

uart

erly

Bal

ance

$'00

0 Q

uart

erly

Mov

emen

t

Cash and Investments - Quarterly Balance & Movement(including restricted funds)

Quarterly Movement (LHS) Quarterly Balance (RHS)

`

43


The Council is committed to reducing its debt position in the Long Term Financial Plan given:

- the Council determined that it had reached its capacity to incur and importantly repay debt in the short to medium term;

- the special variations of June 2013 and May 2015 for renewal of infrastructure replaced the previous program of annually borrowing $2.3M to fund asset maintenance and renewal works; and

- the reduction of debt would provide more capital funding in the medium term than would be available if the Council continued to borrow for renewals and then had to fund the significantly more costly debt service cost.

Under Strategy 3: Manage Borrowings Responsibly, the Council is committed to:

- cease future loan borrowings subject to a business case; - reduce existing loan debt financing; - direct surplus cash funds to reduce borrowings where appropriate; - review borrowing capacity annually; - implement the Council’s Investment Policy and Strategy.

Implementing this Strategy is fiscally responsible and could see the Council’s Loan Balance Outstanding reduce to a projected $8.2M by 2025-2026. However, the appropriateness of loan borrowings as a source of funding will continue to be reviewed annually and it may well be appropriate in the medium to longer term when the Council’s debt levels have been reduced and the Council’s financial sustainability strengthened, to again increase borrowings - if required for supporting the City. Importantly, borrowing for major essential infrastructure projects is considered entirely appropriate as it provides for intergenerational equity in sharing the cost of these projects where benefits will be realised in future years.

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

17/18Actual

Balance

18/19BudgetBalance

19/20 LTFPProjection







Projected Loan balance outstanding as per LTFP

44


Special Rate Variation 2015 In the 2018-2019 budget, funds from the 2015 Stage 2 Special Rate Variation (SRV2) were allocated to designated programs and projects through a separate best value business case assessment process. The following table shows a summary of the allocation, the major variations and actual full year expenditure. Special Rate Variation 2015 Budget review

Budget Variations As some of the SRV2 projects were continued from 2017-2018, they received carry over funding of $647K. In Quarter 4 it was requested to reduce the capital budget for Community Development and place $60K into reserve for the purchase of a new Community Access Bus in early 2019/20. Due to delays in completing a number of projects in 2018-2019, SRV2 funds of $2,194,101 ($225,782 Operating Budget and $1,968,319 Capital Budget) are requested to be carried over.

45


Outcomes Summary Operating Expenditure Transport and Public Access allocation funded additional sealed road maintenance. This work is done to prevent the need for more costly reseal renewal and full road rehabilitations. The special rate variation funding also delivered a second street sweeping team, maintaining streets and reducing the maintenance on Council’s drainage assets. Water resource Management and Natural Environment. The funding enables the delivery of the following programs: - Bushland & Endangered Ecological Community Management - Noxious and Environmental Weed Control - Natural Area and Visitor Facilities - Environmental Education and Engagement - Aquatic Monitoring and Catchment Health - Addressing Illegal Dumping. Town centres allocation funded work on the Lawson Town Centre and Blaxland Masterplans, review of community events security, precinct pavement cleansing, and additional cleaning of high use sporting amenities. Other expenditure included the following projects and programs: - Finalisation of the Former Lawson Golf Course Masterplanning - Asset Management Improvement Program (data reporting improvements and staff training) - Organisational Review and Finance support - Workplace Strategic Operational Building review - Security upgrades - Planned and unplanned expenditure on Asbestos Management and the Performance Improvement

Order. Natural area visitor facilities structural assessments were completed and walking track maintenance program delivered. In Emergency Management the asset protection zone management program and emergency preparedness projects were delivered. In Community & Cultural programs and facilities area community development strategy work was delivered. The Aging Strategy and the Disability Inclusion action plan was adopted. Stronger Families Alliance’s Child and Youth Plan completed. The periodic deep and ad hoc clean of public halls was also completed. Work on community event security upgrades will be carried over to next financial year. The Sport and Recreation allocation delivered sports & amenities cleansing and Tree Management planning. Capital Expenditure Transport & Public Access funding contributed to the delivery of the road reseal and renewal program, bridge renewal, Pedestrian Access Mobility Plan, cycleway construction and traffic barrier construction works. A number of projects totalling $640,010 of funding are required to be carried over to 2019-2020. Water resource management projects were planned for drainage upgrades and renewal works, Bullaburra to Linden Floodplain Study and Lapstone Reserve Sewer System. Work has commenced on these projects and will be carried over to next financial year. Other Built infrastructure capital expenditure commenced delivery of asbestos removal from operational buildings in line with Council’s Asbestos Elimination Program. Natural area visitor facilities walking track program and Echo Point Track and Lookout upgrades. Work was delayed on these programs and will continue into next financial year. Emergency management funding provided fire trail renewal works, the program will continue into 2019-2020. Community facilities projects included Springwood Library refurbishment, security renewals, Disability improvement action plan works, asbestos removal at childcare centres. Work commenced and will continue into 2019-2020.

46


Sport, recreation & Aquatic facilities capital expenditure completed the Lawson Swimming centre renewal works, contributed to delivered play equipment renewal, sportsground renewal and Wentworth Falls Lake reserve upgrade.

Cost Shifting Local Government NSW conducts a Cost Shifting Survey of NSW local councils every two years. The last survey was conducted for the 2015-2016 financial year with data collected mid 2017 with the results released October 2018. The report can be accessed via the Local Government NSW website at www.lgnsw.org.au/policy/cost-shifting-survey. Blue Mountains City Council is categorised as an Urban Regional Council for the survey. The top five cost shifting items for urban regional councils for 2015-16 were:

Waste levy paid by Councils not returned to local government

Contribution to fire and emergency service funding

Shortfall in Library funding

Shortfall in cost recovery for DA processes

Only half reimbursement for pensioner rebates.

Cost shifting ratios have remained relatively stable in the urban regional grouping. The survey establishes the total amount of cost shifting based on the council estimates of the net ongoing cost (excluding capital expenditure) in each of the 26 functional areas identified by the survey. The survey also collected the following two additional cost shifting examples (question 24 & 25):

- Revenue limitations on crown reserve land under council management - Processing of development applications.

The result for Blue Mountains City Council is illustrated in the table below.

Council ACLG Cl.

Total income from operations before capital amounts in $

Inc. Question 24 & 25 Exc. Question 24 & 25

Total amount of cost shifting in $

Cost shifting in relation to total income

Total amount of cost shifting in $

Cost shifting in relation to total income

Blue Mountains City Council

UFL 105,731,000 9,976,768 9.44% 8,658,811 8.19%

Summary Urban Regional

3,201,904,636 228,155,507 7.13% 207,578,412 6.48%

http://www.lgnsw.org.au/policy/cost-shifting-survey

47


Measuring the Council’s Financial Performance – Fit for the Future Measures The following series of measures are being used to monitor and report on the Council’s financial performance. Preliminary results for these measures are provided below, with final audited results to be included in the Annual Report. Key

On track – likely to meet target

At risk – may not meet target

Off track – will not meet target

Measure Description 2018-2019

Target Preliminary end-of-year result

Preliminary end-of-year result

Operating Performance Ratio (excluding capital items and including depreciation)

This measures whether the Council has sufficient revenue (excluding capital items) to cover expenditure requirements (including depreciation)

0.7% -4.74%

Own Source Operating Revenue

This ratio measures fiscal flexibility and reflects the degree of reliance on external funding sources such as operating grants & contributions

>60% 82%

Debt Service Ratio Percentage of the Council's total revenue used to service debt <20% 5.7%

Building and Infrastructure Renewal Ratio

This assesses the rate at which built assets are being renewed relative to the rate at which they are depreciating

82.5%*

Not yet available. Will be published

in the Annual Report in

November

Not yet available

Infrastructure Backlog Ratio

This ratio shows the proportion of infrastructure backlog against the total value of the Council’s infrastructure <2%



November

Not yet available

Asset Maintenance Ratio Compares actual against required annual asset maintenance. A ratio above 100% indicates that the Council is investing enough funds to stop the Infrastructure Backlog growing

>100%



November

Not yet available

Real Operating Expenditure per Capita

To demonstrate operational savings (net of IP&R supported service improvements)

Declining trend

1.58 2017: 1.40

*Based on projected performance from the Council’s Fit for the Future Improvement Proposal


48

Key Terms Used in this Report Sustainability Performance Reporting (Quadruple Bottom Line) – Sustainability performance measures are

used to assess the Council's governance, environmental, social and financial performance or how sustainable and healthy we are as an organisation.

Major Projects - Major projects are defined as those projects that have a significant capital component and / or require significant financial / staff resources / community consultation usually over more than one financial year.

Asset Works Projects - Asset works are projects that broadly involve the planning and construction of new built assets or the improvement of existing built assets such as footpaths, signage, roads and community halls.

Operational Plan Actions - Operational Plan actions are a comprehensive list of all activities and projects the Council is committed to delivering each year in alignment with the Council's 4-year plans.

Service Performance Measures - Service performance measures are a quantitative assessment of outputs of Council service delivery to assess whether the Council has delivered service outputs as planned to required standards.

Delivery Program Performance Measures - The Delivery Program performance measures focus on outcome based measures of service activity including qualitative measures on perceptions of key stakeholders on service performance results and asset based measures used to measure the condition of built assets.

How Progress is Reported For each milestone / project / action progress will be shown as either:

On Target - is applied to a milestone / project / action that is in progress as planned.

Complete - is applied to a milestone / project / action that has been completed as planned.

Behind Target - is applied to a milestone / project / action that is not being delivered as planned which could be due to a number of reasons such as vacancies, weather or new issues that arose during the course of project implementation.

Not Complete – is applied to milestone / project / action that was not completed as planned.

Rescheduled - this is assigned to a project by the General Manager where resources have been redirected to other agreed priorities that have emerged or where delays / issues have arisen beyond the control of the Council. This status is removed from the calculations for "% of projects On Target / Complete".

Withdrawn - this is assigned to a project where the lead community partner or lead agency no longer wishes to proceed with the project or where it has been superseded by other priorities. This status is removed from the calculations for "% of projects On Target / Complete".

For each performance measure progress will be shown as either:

Below Target: applied to a performance target that was not achieved.

On Target: applied to a performance target that was achieved or tracking in the right direction to be achieved.

Within 10% of Target: applied to a performance measure target that was within 10% of the target.

Not Yet Available: applied to performance targets where the result is not available. These measures are removed from the calculation for "% of performance measures on target".

final six month report 2018-2019 · final six month report 2018-2019 6 the council has committed to...

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