Upper Lachlan Shire Council – Management Plan 2008/2009-2010/2011 Mayoral Message As Mayor of the Upper Lachlan Shire, I am pleased to announce that the Management Plan for 2008/2009 has been finalised after extensive community consultation. Management Plan’s are outlines of the Council’s action plan for the upcoming financial year and includes a summary of major activities to be undertaken, a proposed revenue policy to fund that activity and statutory statements, which identify performance targets and activities for the Council’s principle goals. With an operating budget of approximately $18.6 million and demands from projects vital to the well being of the Shire, as well as from all sections of the community, I am pleased to report a projected balanced budget for the upcoming financial year. This will be achieved within the constraints placed on Council by the State Government through rate pegging of 3.20%. It should be noted that currently inflation nation wide is over 4%. Roads Major achievements of the 2007/08 Management Plan include the reconstruction and sealing of MR52 (otherwise known as the Grabben Gullen Road), the sealing of the Oberon Road (known as the Tablelands Way), as well as the reconstruction and sealing of 13.5 of the scheduled 19 kilometres of the Boorowa Road (MR248 West). The remaining 5.5 kilometres of MR248 West is scheduled to be completed during the 2008 calendar year. This $4.7 million project is six months ahead of schedule, which is a great achievement for all members of the Works and Operations Department. The Council believes that the sealing of these roads will present tremendous benefits to the Upper Lachlan Shire both in terms of tourism and assisting primary producers. Council believes the financial strain in the short term will prove beneficial to the Shire in the long term by linking Upper Lachlan to the Central West of the State. While all of these projects are important to the Council, the other major road project vital to the wellbeing of the Shire is Taralga Road (MR248 East). Management Plan 2008/2009 adopted 26 June 2008 page 2 Upper Lachlan Shire Council – Management Plan 2008/2009-2010/2011 Recognising this road’s importance, the Council has committed itself to significant reconstruction and sealing of MR248 East over the next three years and as part of that commitment has reallocated $370,000 of the $470,000 of grant money from the Roads to Recovery Fund to capital works on the Taralga Road. A further $100,000 from this fund has been directed to the repair of the Collector Bridge. Also in line for upgrading works is MR241, the Dalton to Rye Park Road. Recognising that the Upper Lachlan Shire Council has 2,036 kilometres of roads to maintain, of which 1,312 kilometres are unsealed, Council has elected to increase the road maintenance allocations by five percent above the budgeted allocation in 2007/2008. Shire Health Issues Council has purchased and is now in the process of refurbishing, what was known as Banfield House, into an all purpose Medical Facility, suitable for visiting specialists as well as offices for other General Practice Physicians. Towards this purpose Council was successful in its grant application to the Federal Government for funding of $440,000. With combined matching funding from Council, Frail Aged Association and Health Care Centre Inc. The Medical Centre, when completed, will be of considerable benefit not only for the health and well being of residents of Crookwell but also for the surrounding villages. Work on this new facility is scheduled for completion by end of July 2008. Water, Sewer and Main Streets The management of water supply and sewer services are major responsibilities of Council. In response to this the Upper Lachlan Shire Council staff applied for and received grants from the NSW Department of Water and Energy and Sydney Catchment Authority in the order of $5 million, towards a sewer system project for the village of Taralga. The success of this project owes a lot to the efforts of the Manager of Water and Sewer, Luke Moloney, and his team and they deserve to be congratulated. Preparations for the beautification of Crookwell and Gunning’s main streets are underway, with work due to begin this winter in Crookwell and with community consultation between Council and the Gunning Chamber of Commerce regarding what could best be done for the main street of Gunning. Still in Gunning, Council is in consultation with the Upper Lachlan Tourist Association Committee in reviewing the upgrading of the town’s caravan park. The Upper Lachlan Shire Council is a leader in the provision of community support and has allocated donations of $44,291 towards local charities, as well as sporting and community groups. There are numerous other areas of spending within the total capital infrastructure expenditure program being $8.4 million in 2008/2009. Management Plan 2008/2009 adopted 26 June 2008 page 3 Upper Lachlan Shire Council – Management Plan 2008/2009-2010/2011 Levies General Ordinary Rates have been calculated with a revaluation of all land in the Shire by Land & Property Information. Land Values have increased by an average 8%, however this does not mean rates will increase by the same percentage, but the revaluation will mean a redistribution of the rates between different rating categories. Water Supply Access Charges are estimated to include an increase of $10 a year for Crookwell, Taralga and Dalton bringing each town’s yearly levy to $430. Gunning will experience a $70 increase in their water access charge, which equates to a yearly water charge of $280. Please note that the Domestic Waste Management / Recycling Annual Charge will increase by $15. As always Upper Lachlan Shire Council has welcomed the community participation from the ratepayers and residents in the Shire into compiling the adopted Management Plan. All Management Plan submissions have been considered by Council. The Management Plan is presented in accordance within the provisions of the Local Government Act 1993 (as amended). Clr. John Shaw Mayor Upper Lachlan Shire Council Management Plan 2008/2009 adopted 26 June 2008 page 4 Upper Lachlan Shire Council – Management Plan 2008/2009-2010/2011 General Managers overview It is a requirement under the Local Government Act, 1993 for all Councils to prepare and adopt a Management Plan covering a period of three years. The Plan is, in fact, a ‘Vision Statement’, which provides the community with an outline of how the Council has prioritised its resources to meet their understanding of the community’s concerns. This is to be seen as a working document and will be referred to as the financial year progresses. The Council’s ‘Principal Activities’ are the ‘core activities’ for which Council receives income through rates, grants and other revenue raising activities, and includes the activities upon which these funds are expended. These core activities include: administration; public order and safety; health services; community services and education; housing and community amenities; recreation and cultural activities; mining, manufacturing and construction; transport and communications; economic affairs; waste management; water supplies and sewerage services. Upper Lachlan Shire Council is employing a long term strategic focus with respect to all of Council’s core activities. Council has developed a five year capital budget of income and expenditure to establish a pathway for the future direction of the Council’s major capital works, infrastructure renewals and operations projects This year’s Management Plan continues the good work of the last three financial years. The 2008/2009 projected operational budget is a financially responsible budget with a balanced budget proposed. Council has an operating budget of $18.6 million and the responsibility to produce an equitable Management Plan is considerable. This year’s budget draws $7.5 million from rates and annual charges; another $5.7 million from user charges and fees; and the remainder coming from grants, interest revenues and other revenues. All NSW Councils have been limited to a maximum 3.20 percent increase in total rates income this year, which means an estimated increase of $161,200 for this Shire. Management Plan 2008/2009 adopted 26 June 2008 page 5 Upper Lachlan Shire Council – Management Plan 2008/2009-2010/2011 The following items will have a significant impact on the operating budget for 2008/2009:- • Council estimates the forthcoming financial year will see a CPI increase of 4.10% for materials and contracts, as well as an expected increase of salaries and wages for Council staff of an estimated 4%; this includes salary increases, on-costs and salary step progressions. • The road maintenance budgeted allocation has increased by 5 percent above the allocation in 2007/2008. • Section 356 Donations – an estimated expenditure of $44,291 is budgeted which is comparable to the previous year and all donations are outlined on Page 134. • Depreciation Expense – to comply with the Department of Local Government directives all buildings, other structures, plant and equipment, water infrastructure and sewer infrastructure were required to be revalued to reflect the current replacement cost and remaining useful lives. This has resulted in an additional amount of $559,000 budgeted for asset depreciation expense in 2008/2009. The total depreciation allocation now totals over $4.1 million or 22% of total operating expenditure. Like all NSW Councils, the Upper Lachlan Shire Council is placed under considerable financial constraint by the NSW State Government through rate pegging and cost shifting. Council has tried to address the needs expressed through the submission process from all the Shire’s localities but unfortunately, does not have the ability to fund every proposal put forward. Submissions come from many avenues including the community, sporting groups, charity groups, Section 355 bodies and the Council’s Departmental Directors.