MAYORAL MESSAGE The state of our roads continues to be of real concern to everyone. Council is very aware that poor roads are a safety issue and hamper development and business potential. For many years this, and many other rural councils, have struggled to balance community expectations and income that has been capped by the State Government. After the community information sessions in early September 2009, the Dungog Shire Council Situation Analysis and Land Use Strategy was adopted at the February 2010 meeting and is progressing so that the LUS becomes the NSW Planning’s “endorsed” local strategy. During 2010-2011 Council staff will be working with NSW Planning on the development of the Councils Standard Instrument Local Environment Plan it is envisaged that Council will undertake public consultation in the latter half of the financial year. Council is about to commence development of an Integrated Community Strategic Plan. This will provide Council with a long term strategic sustainability plan for this Shire. The main purpose of this plan will be to understand what vision the community has for its future, identify the strategic actions required and to develop a sustainability plan that will drive the integrated and reporting framework within the Council. In the coming year this will also entail extensive and structural consultation with the community across all the villages that make up this shire. Implementation of this plan is expected by 30 June 2012. The Management Plan 2010 – 2013 Mayoral Message stated “In real terms, the Council cannot continue to operate its asset base from a community benefit perspective and we need to focus on a business approach looking for positive returns on built assets or contemplating the disposal of under-utilised or poorly performing assets”. This approach becomes more relevant today as increases in water charges, energy charges, Sec. 88 waste levy charges, insurance costs and staff salary increases all exceed the permitted increase in Council rates allowed for by the Minister for Local Government under the NSW Government rate pegging policy. Council’s budget is limited in terms of alternate revenue streams and there is significant reliance on grant funding for projects. The Tillegra Dam proposal continued to expend considerable time and energy from both staff and councillors. This work has come at considerable cost but is necessary to ensure whatever the outcome of the assessment, the best result is achieved for the community. Council always has, and continues to, welcome the participation of the community in all of its activities and I personally encourage everyone to become involved. Harold Johnston MAYOR Dungog Shire Council Annual Report 2009/10 Page 2 GENERAL MANAGERS OVERVIEW The annual report presents the opportunity to reflect upon the performance of the Council over the previous twelve months and to report in an open way to the community. The challenges facing local government continue to grow and the Council continues to finely balance meeting the community's expectations in times of severe fiscal restraint. The Council has managed to meet its statutory obligations in terms of the timely completion of strategic tasks such as setting the Annual Management Plan, levying and collecting rates, completion of the financial statements of account and adoption of the external auditors report, as well as compliance with many other programs as regulated by Government. In October 2009 the Division of Local Government advised that the “Integrated Planning & Reporting” legislation had been adopted and Councils were now required to have in place by 30 June 2012 a community strategic plan, 10 year financial plan, asset management plans, a four year service delivery plan and a one year operational plan as well as a human resource strategy. Work on this project will commence in earnest during the 2010/2011 financial year. The year has seen the completion of the Councils Land Use Strategy which is a critical element in terms of the future development of our Shire in relation to land use planning. The document itself also included a specific chapter in relation to the Tillegra Dam precinct so as to ensure that the Council did not have to re-visit the land use strategy should there be a positive determination on the Dam. The proposed Tillegra Dam has again consumed countless hours of staff time in the past 12 months, following the release of the Environmental Assessment Report in September 2009 Council officers prepared a detailed response on behalf of Council and the community in relation to the project. I need to recognise the efforts of Matthew Brown and Terry Kavanagh for their significant commitment to the submission process as many personal hours were sacrificed by the management team of Council. Throughout the year Council continued to actively lobby both the State and Federal Government in relation to road funding highlighting the potential impacts that the proposed Dam would have on the road network, the route access strategy as developed by Councillor Glenn Wall in consultation with senior engineering staff, NRMA and RTA underpins the Councils ongoing argument for increased funding for the regional road network. Council has made further representations to IPART in relation to the review of the local government revenue framework, following on from submissions made in 2008. On completion of the review the NSW Government announced that IPART would be involved in the setting of the rate-pegging limit into the future and would also be gathering information in relation to the development of a local government cost index. Councils main concern into the future is sustainability, with an ageing infrastructure asset base and limited alternate funding opportunities available to assist in the renewal of assets the Council again made application to the Minister for Local Government for a rate increase for 2009-2010. Councils application was refused which was disappointing as it had always been part of the Councils original submission to raise the Councils rate base over three separate financial years as opposed to an initial impact in the vicinity of 15%, 2009-2010 was meant to have been the last stage of the Councils initial proposal as submitted to the community. In the past 12 months there has been a significant amount of legislative change that will impact upon the Councils operations into the future, from the introduction of the Sec 88 waste levy from 1 July 2009 through to the Planning Reform amendments and restrictions in relation to Sec 94 developer contributions. Many of the legislative reforms will impact upon Councils operating income and expenses and could well jeopardise long term infrastructure projects as a consequence. Dungog Shire Council Annual Report 2009/10 Page 3 Each quarter a comprehensive report is provided to the Council that details the progress being made towards meeting the relevant performance targets as detailed within the Management Plan. Furthermore a comprehensive report on the financial position and budget comparisons is also provided on a quarterly basis. These reports provide the Council with the opportunity to seek clarification as regards the status of projects and the ability of the Council to ascertain whether the performance targets as set will be met. The external auditors have reported on the financial performance of the Council and whilst the financial indicators do indicate that the Council is in a sound financial position it must be emphasised that the Councils operating result before capital funding continues to highlight the Councils reliance on Capital Grants and contributions to deliver infrastructure renewal. The Council does not function without the dedication and commitment of our staff. They are part of the community and apply themselves in a most diligent fashion and such reflects in the professionalism demonstrated when dealing with the members of the public. Throughout the 2009/10 financial year there have been many occasions where members of the public have personally written letters of appreciation to Council for the assistance they have been afforded or where works undertaken have exceeded their expectations. In closing I would also like to recognise the members of our community who are engaged in undertaking voluntary work within our Shire. From members of management committees of Council owned community facilities to the volunteer fire-fighter it is the efforts of these people that strengthen our communities there are so many dedicated and hardworking individuals within our Shire that help make Dungog Shire such a special place to live. Craig Deasey GENERAL MANAGER Dungog Shire Council Annual Report 2009/10 Page 4 ORGANISATIONAL STRUCTURE Dungog Shire Council Annual Report 2009/10 CouncilAnnual Report 2009/10 Dungog Shire Elected Members (Councillors) GENERAL MANAGER TILLEGRA DAM – Craig Deasey ECONOMIC STRATEGIC COMMUNITY STRATEGIC DEVELOPMENT PROJECTS PROJECTS PROJECT OFFICER OFFICER OFFICER MANAGER Greg Fenwick TOURISM Lyn Brighton Tracey Lowrey Brett Peterkin INFORMATION (Part Time) OFFICER Wendy Farrow EXECUTIVE EXECUTIVE MANAGER MANAGER MANAGER MANAGER INFRASTRUCTURE & PLANNING ENVIRONMENTAL CORPORATE ASSETS SERVICES SERVICES Steve Hitchens Matthew Brown Terry Kavanagh Shaun Chandler SENIOR SENIOR FINANCE ASSETS & ENVIRONMENTAL DEVELOPMENT OFFICER WORKS DEVELOPMENT HEALTH OFFICER CONTROL Cheryl Hyde MANAGER ENGINEER Damien Reeves Vacant Terry Wilson OFFICER Brent Mason PROJECT ENGINEER TRAINEE FINANCE STAFF ENVIRONMENTAL Nigel