Enclosure - Blue Mountains City Council - NSW Government

Enclosure

Six Month Delivery Program Progress Report and Quarter 2

Budget Review Statement 2019-2020

(Enclosure 1) Meeting: 25 February, 2020

QUARTER 2 REPORT 2019-2020 December 2019

Including the six month progress report on the Delivery Program and the quarterly budget review statement

Reporting on the Implementation of the 2019-2020 Operational Plan

(Year 3 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 Management

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 .................................................................................................................. 6

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

MAJOR PROJECTS ............................................................................................................................... 10

ASSET WORKS PROGRAM ............................................................................................................... 11

OTHER OPERATIONAL PLAN ACTIONS ..................................................................................... 17

QUARTERLY BUDGET REVIEW STATEMENT BY THE RESPONSIBLE ACCOUNTING

OFFICER ................................................................................................................................................. 19

KEY TERMS USED IN THIS REPORT .............................................................................................. 37

Quarter 2 Report 2019-2020

4

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 legislatively required budget review statement for Quarter 2, as well as six monthly delivery program progress report (as at 31 December 2019).

The Purpose of Reports Reports have been designed to:

Meet legislative requirements (transparency and accountability);

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

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 2019-2020

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 2019) – reported in November 2019 Quarter 2 (as at 31 December 2019) – reported in February 2020 Quarter 3 (as at 31 March 2020) – reported in May 2020

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 2019-2020 Operational Plan will be provided to the Council as follows: First six months (July to December 2019) – reported in February 2020 Final six months (January to June 2020) – reported in September 2020


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Summary of Performance During this six month period Council has made good progress towards achieving against its commitments in the Delivery Program. This is despite unplanned work and disruption from weather events and the bushfire emergency. The Council response to the bush fire emergency included supporting the emergency operations centre and the incident management team, and helping residents prepare their properties with additional green waste services. The additional services included the provision of additional chipping services, free disposal of green waste at the Waste Management Facility and weekly collection of the green bin kerbside collection. Overall, Council is still on track in delivering on its 2019-2020 commitments

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 31 December 2019:

100% of Major Project milestones for 2019-2020 were On Target (refer to page 12).

Asset Works Projects

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 31 December 2019:

89% of Asset Works Program projects were On Target / Completed (including Major Project milestones) (refer to page 13).

Other Operational Plan Actions The Council has committed to delivering a wide range of actions and projects through its service delivery commitments. As at 31 December 2019:

95% of other Operational Plan actions were On Target / Completed (refer to page 18).

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

Other Operational Plan Actions

Capital Works Projects

Major Project milestones

% Achieved % Behind Target


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Six Month Highlights July to December 2019

Lead

Embraced interim findings from Public Inquiry In August 2019, a Supplementary Interim Report issued by the Public Inquiry into Blue Mountains City Council emphatically confirmed the findings from the May 2019 Interim Report. In particular, the new report found that Council acted appropriately in respect to its engagement of independent investigators to examine certain asbestos and staffing matters, and rejected the allegation that Council and some of its staff misled the Inquiry.

The Public Inquiry is ongoing.

Improved customer service The rollout of a new customer service knowledge management system has made it easier for staff to retrieve information and address customer enquiries quickly and accurately. The innovative launch of this system led to Council receiving an award at the livepro Customer Service Knowledge Management Awards, and has already resulted in significant reductions in response times within the customer call centre.

Customer service assistance is now also available in more than 100 languages for our non-English speaking customers via Google Translate on iPad.

Announced two new Australia Day awards Two new categories have been added to the Blue Mountains Local Australia Day Awards for 2020, namely Senior Citizen of the Year, and Environmental Citizen of the Year. The Environmental Citizen of the Year award will recognise an individual or organisation that champions litter reduction or recycling outcomes, or other environmental initiatives. The local winner will also go in the running for the State award that includes $5,000 from Return and Earn for their environmental initiative.

Protect

Adopted ambitious carbon neutral target The Council adopted a target of becoming carbon neutral by the end of 2025 at its September meeting. The National Carbon Offset Standard certification process is a voluntary standard that ensures organisations are applying best practice in managing their carbon emissions, and provides a rigorous, independently verified assessment before achieving carbon neutral certification.

Becoming carbon neutral also demonstrates to our community that Council is committed to taking action that aligns with our recent declaration of a climate emergency.

Solar panels on Echo Point Visitor Information Centre

Celebrated win at national climate awards The Blue Mountains was recognised on the national stage for outstanding achievement in energy efficiency at the 2019 Cities Power Partnership Awards. Council won the Project Financing Innovation Award for our Carbon Revolving Reserve, which provides a long-term, self-sustaining source of funding for energy efficiency and renewable energy projects.

The Carbon Revolving Reserve will see the majority of Council’s lighting and 53% of street lighting converted to LEDs, and the installation of 290kW of rooftop solar. These initiatives will deliver savings of approximately $300,000 each year, enabling further investment of $1.5 million in energy efficiency and renewable energy projects over the next five years.

Adopted strategic plans to manage water and weeds In September, the Council adopted two strategic plans to help secure the health and longevity of our local environment into the future.

The Water Sensitive Blue Mountains Strategic Plan outlines best-practice approaches and design principles to manage our City’s waterways and water resources. The plan was developed in collaboration with WaterNSW and the Cooperative Research Centre for Water Sensitive Cities, with significant input from the community. The Weed Management Strategic Plan 2019 takes into account significant policy and legislative changes, as well as community consultation in relation to weed control.


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Recognised exceptional contribution to environmental education An officer from Blue Mountains City Council won both the NSW Environmental Educator of the Year award, and the AAEE (NSW) Government Education Award, for an outstanding contribution to Environmental Education in NSW.

Jenny Hill was recognised by the peak professional body at an awards ceremony in October. As part of Council’s Healthy Waterways team, she has been responsible for running the Connecting with Nature program. This is a hands-on environmental learning program that has engaged with over 25 schools and more than 3,500 students over the past five years.

Jamison Catchment project awarded Jamison Catchment Streets to Creeks project was awarded Local Government NSW – Excellence in the Environment Award. It was the category and overall winner of the Natural Environment Protection & Enhancement: On ground works.

Hosted Waterways Festival A free, family-friendly event was held on Sunday 25 August at Wentworth Falls Lake to highlight some of the fantastic species that inhabit our waterways. Activities included workshops by two of Australia’s leading experts, Dr Rob McCormack (Crayfish workshop) and Dr Ian Baird (Giant Dragonfly workshop), as well as turtle workshops with senior students from Western Sydney University. Further activities such as a PlantQuest walk, Swamp Safari, weaving and eco-gardening workshops, and waterbug displays provided something fun for everyone.

Care

Responded to Bush Fire crisis Council responded to the bush fire crisis in December by supporting the Incident management team at the Emergency Operations Centre, delivered bulk water carriers to support firefighting, prepared staging areas and provided extra waste services. Council also supported communities in the upper Blue Mountains who were impacted by the bush fires. Recovery assistance included providing drinking water and fuel and clearing dangerous trees. Council has also committed to providing fee waiver and concessions for bushfire affected properties.

NAIDOC Week exhibition highly commended The Blue Mountains Cultural Centre received a highly commended award at the IMaGINE Museums and Galleries NSW Award Night for the 2019 NAIDOC week exhibition and workshops.

Won Family Day Care awards Two of Council’s Family Day Care services were recognised as among Australia’s finest early childhood educators in the Family Day Care Australia Excellence Awards. Mark and Michelle Tregillgas of Moochy Kids Family Day Care in Winmalee won the Educator of the Year Blue Mountains and Central West regional award, as well as the State award. Emma McMullan of Tiny Tykes Family Day Care in Agnes Banks won the Educator of the Year Richmond and Hawkesbury regional award.

Award-winning Moochy Kids Family Day Care

Introduced new Youth Council initiatives In August 2019, Council welcomed sixteen new members to the Blue Mountains Youth Council. The current Youth Council is focusing on an environmental theme, and have already launched two new initiatives.

Project Plant It involves a collaboration between local primary schools and Bushcare volunteers, with students learning about the vital role trees play in our lives, health and future, and how to plant and care for native plants.

Meanwhile, the Earth Friendly Advocate project acknowledges businesses who are taking proactive steps to minimise their environmental impact through minimising waste, encouraging customers to bring their own containers, saving energy and water, and donating surplus food. Participating businesses are rewarded with a sticker that they can proudly display at their premises.

Youth Council member Adisen Wright, who features in the Project Plant It promotional video


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Launched successful HubCon event The inaugural HubCon – a family-friendly pop culture festival – was held at the Blue Mountains Theatre and Community Hub on 12-14 July 2019. It was hailed as a great success, with almost 1,800 attendees across the three days.

Hosted by special guests Stephanie ‘Hex’ Bendixsen and Ben Sorensen, HubCon highlights included a tremendous participation in cosplay, comic book masterclasses, video gaming tournaments with Super Smash Bros, the collector’s market, a zombie make up tutorial, and many engaging panels and workshops.

Planned accessibility upgrades for district parks District parks at Blackheath, Wentworth Falls, Springwood and Glenbrook will receive upgrades over the next three years valued at more than $5.2 million. These projects will include improving accessibility. A key goal in Council’s Disability Inclusion Action Plan 2018-2021 is to help people of all abilities to enjoy and use our public areas and parks. These upgrade projects are funded through the Western Parkland City Liveability Program.

Celebrated 15th birthday of Springwood Aquatic and Fitness Centre Springwood Aquatic and Fitness Centre celebrated its 15th birthday on Sunday 18 August with a free fun day. This included a full day of activities including face painting, BBQ, free group fitness classes and use of the waterslide, with cake celebrations in the afternoon.

Live

Exhibited draft Local Strategic Planning Statement Council’s draft Local Strategic Planning Statement, Blue Mountains 2040: Living Sustainably, was placed on public exhibition during October and November 2019. This provided the community with an opportunity to contribute to the future vision for the Blue Mountains, particularly in terms of land use, character and housing.

More than 160 submissions were received during the exhibition period, mostly in support of the statement. Outcomes of the consultation process will be reported to the Council in February, with the planning statement to be finalised by the end of March.

Opened new heritage trail at Woodford Reserve In a collaboration between Council, Traditional Owners and the Woodford Academy, a new heritage trail opened at the Woodford Reserve in August 2019.

Layers in Time takes visitors on a self-guided 1.4km loop through the central estate grounds of Woodford Academy, capturing the site’s history and sharing these

stories in an engaging way. Illustrated signage along the trail features QR codes, so that visitors can easily access more detailed information.

Opening of Layers in Time heritage trail at Woodford

Additional funding for heritage buildings Council and the NSW Government jointly funded the Blue Mountains Local Heritage Assistance Fund grant program. This program targets minor conservation works to heritage properties. In its first year, 2019-2020 funding is being directed towards buildings that make an important contribution to the character and significance of Heritage Conservation Areas.

Move

Endorsed parking precinct plans Council endorsed a Parking Precinct Plan for Echo Point in August. Parking Precinct Plans aim to improve the balance between resident, visitor and business parking needs. The Echo Point plan will provide a revenue stream for the ongoing maintenance and upgrade of essential tourist facilities and infrastructure, transferring the cost burden from ratepayers to visitors.

A Parking Precinct Plan for Blackheath, including sensor parking in the village centre, was also endorsed in October. Parking Precinct Plans will be prepared for other high priority locations in the future.

Hosted Bike Week activities As part of NSW Bike Week, Council offered two free Kids Bike Skills Workshops on Saturday 21 September at the Lapstone Netball Courts.

The workshops were aimed at children 13 years and under, and were a big hit with both enthusiasts and beginners. They provided an opportunity for participants to improve their riding confidence and bike handling skills through a series of fun bike games.

An additional hands-on workshop for adults and teens taught basic bike maintenance skills, including how to change a tyre and repair a puncture.

https://nsw.us8.list-manage.com/track/click?u=b48e6238d92ab870d9c0c35b8&id=fe31f12db1&e=c00ee571fa


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Thrive

Commenced upgrades at Echo Point Council has commenced significant upgrades at Echo Point, to provide an immersive experience for all those who visit the site. These upgrades include:

A new gathering place (amphitheatre)

A new Prince of Wales Lookout

An accessible, night-lit boardwalk connecting the lookouts, amphitheatre and Council’s Visitor Information Centre

Security bollards and CCTV.

These works are expected to be completed by August 2020.

Launched new experience trails A new tourism project has developed three specially designed experience trails to encourage more visitors to stay overnight in our region, to boost the local economy. The idea was developed by the Regional Strategic Alliance, which is a collaboration between Blue Mountains, Penrith and Hawkesbury councils. The Flavour Trail, Adventure Trail and Nature Trail are easy-to-follow printed or electronic documents incorporating a three-day, two-night itinerary and featuring maps, travel tips and highlights.

Delivered customer service training for tourism operators Council hosted a free workshop for tourism operators, Creating Awesome Experiences, at the Blue Mountains Cultural Centre in September. It was a sell-out success, with more than 60 enrolments from enthusiastic local operators. At the workshop, tourism marketing expert Naomi Farrelly spoke to local tourism operators about current product trends, understanding customers, creating customer experiences, delivering great customer service and how to create an action plan to wow your customer.

Advocacy / Issues to Note July to December 2019

Quality of Life Mayoral Reference Group The Quality of Life Mayoral Reference Group met for the first time in July 2019. The group was set up to consider environmental and liveability impacts from the proposed raising of the Warragamba Dam wall and the Western Sydney Airport.

Opposing the raising of Warragamba Dam Wall.

Blue Mountains Mayor gave evidence to a NSW Parliamentary Inquiry against the raising of the Warragamba Dam Wall in November 2019. The evidence concerned the inadequacy of the Environmental Impact assessment process to date, including the assessment of impacts on World Heritage, Aboriginal Cultural Heritage and the ecological values of the Greater Blue Mountains National Park.

Blue Mountains and Wollondilly councils have formed an alliance to raise awareness about what is at stake with this proposal. The councils held a community forum on 10 November as part of that campaign

Alliance of Western Parkland City councils formalised In November 2019 Council adopted a Deed of Agreement (DoA) to formalise the framework around the alliance of Western Sydney Parkland City councils. The DoA formally establishes the Western Parkland Councils organisation, that includes the eight councils who signed the Western Sydney City Deal. The Alliance will work together to deliver the City Deal program and aim to achieve positive and sustainable benefits for the region.

Blue Mountains Bush Fire Mayoral Relief Fund A Blue Mountains Bush Fire Mayoral Relief Fund was established in December. The Fund will direct funding to projects that contribute to the recovery and rebuilding efforts of any fire affected residents in the Blue Mountains, following recent bush fires. It enables the Australian community to assist our local community in their time of need. Members of the Fund Advisory Committee, who will decide where to direct the funding, are: Joan Domicelj AM, The Hon Bob Debus AM, Kerry Bartlett, The Hon Phil Koperberg AO AFSM BEM, Mary Waterford AM, and Blue Mountains City Council Chief Executive Officer


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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 2019-2020 as at 31 December 2019.

Service Major Project Milestone 2019-2020

Status at 31

December 2019

Comment

Original Capital Budget 19/20

Revised Capital Budget*

19/20

Actuals to 31 Dec 2019

Southern Scenic Escarpment Program (AWP 1)

Economic Development & Tourism & Sport & Recreation

Southern Scenic Escarpment Program

Prince Henry Cliff Walk, Echo Point

Gathering Place Echo Point

Katoomba Falls Kiosk

Funding : - Property Investment Fund

- National Stronger Regions Fund Grant

- Special Variation 2015

- Pay & Display Reserve

OT . 3,530,781 3,530,781 415,987

Total Southern Scenic Escarpment Program 2019-2020 $3,530,781 $3,530,781 $415,987

Western Sydney City Deal including Western City Parkland Liveability Program (Project Delivered between 2018-2021)

Sport & Recreation

AWP 139 Liveability Program: Wentworth Falls Lake (W959-106) City Deal Liveability Program Grant , S7.12 Development Contributions Reserve

OT 104,145 173,945 -

AWP 140 Liveability Program Glenbrook Playground Stage 2 – Inclusive playground for older children (W959-104) City Deal Liveability Program Grant , S7.12 Development Contributions Reserve

OT 297,954 297,954 24,792

AWP 141 Liveability Program: Buttenshaw Park Youth Play space (W959-104) City Deal Liveability Program Grant , S7.12 Development Contributions Reserve

OT 92,145 192,145 1,052

AWP 142 Liveability Program: District Park upgrade - Blackheath Soldiers Memorial Park (W959-108) City Deal Liveability Program Grant , S7.12 Development Contributions Reserve

OT 52,373 132,373 36,383

AWP 143-146 Liveability Program Scenic Eastern Escarpment (W959-110) City Deal Liveability Program Grant , Special Variation 2015

OT 110,276 110,276 -

Aquatic & Leisure Centres

AWP 147 Liveability Program: Katoomba Outdoor Pool Upgrade (W959-118) City Deal Liveability Program Grant , Special Variation 2015

OT 152,202 152,202 9,500

City Presentation

AWP 148 Liveability Program: Implement Blackheath Town Centre Masterplan (W959-120) City Deal Liveability Program Grant , S7.12 Development Contributions Reserve

OT 138,691 138,691 43,381

AWP 149 Liveability Program: Springwood Town Centre Masterplan (W959-122) City Deal Liveability Program Grant , S7.12 Development Contributions Reserve

OT 37,864 37,864 35,766

Libraries & information

AWP 150 Liveability Program Springwood Library (W959-124) City Deal Liveability Program Grant , Special Variation 2015

OT 280,738 280,738 40,946


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*Revised Capital Budget Includes budget carried over from 2018-2019 and adopted & proposed variations.

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.

89% of Asset Works Program (including major projects) were On Target / Completed as planned as at 31 December 2019

Notes:

As this is a 12 month program, the majority of construction activity occurs in Quarters 3 and 4 with the majority of invoices processed in Quarter 4.

The following table presents the details for the Asset Works Program projects as at 31 December 2019. The table includes those asset projects that are funded by the special variation.

Service Asset Works Project

Status at 31

December 2019

Comment (for those projects Behind Target)

Original Capital Budget

19/20

Revised Capital

Budget* 19/20

Capital Expenditure

to 31 Dec 2019

LEAD

Op

erat

ion

al In

tern

al S

ervi

ces

AWP 122 Remediation of Solitary Restaurant Katoomba (W028-826)

C - 50,055 39,177

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

OT - - 196,450

AWP 156 Re-fit Springwood Depot amenities building (W291-100)

BT

Design complete. Additional budget required to commence works in Q3

200,000 200,000 3,153

AWP 157 Workplace accommodation improvements (W028-740)

OT 500,000 500,000 -

AWP 166 Information Technology renewals (project 2250)

OT 395,000 395,000 159,119

Service Major Project Milestone 2019-2020

Status at 31

December 2019

Comment

Original Capital Budget 19/20

Revised Capital Budget*

19/20

Actuals to 31 Dec 2019

City Wide Strategic Planning

AWP 151 Liveability Program: Lawson Crown Lands Masterplan Implementation (W959-126) City Deal Liveability Program Grant , S7.12 Development Contributions Reserve

OT 126,622 126,622 58,250

Transport & Public Access

AWP 168 Liveability Program: External Active Transport Links (W959-130) City Deal Liveability Program Grant , Special Variation 2015

OT 64,790 64,790 -

Total Western Sydney City Deal including Western City Parkland Liveability Program $1,457,800 $1,707,600 $250,068

City Presentation

AWP 5 Implement Lawson Town Centre Car Parking (W732-162) S7.11 Development Contributions Reserve

OT 19,540 19,540 6,630

Total $5,008,121 $5,257,921 $672,685


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Status at 31

December 2019



19/20

Revised Capital

Budget* 19/20

Capital Expenditure

to 31 Dec 2019

AWP 167 Plant & Equipment - S&C Exec & Admin (project 1500)

OT 2,000 2,000 -

AWP 167D Plant & Equipment - Mechanical Services (project 6550)

OT 5,000 5,000 -

AWP 180 Asbestos & Hazard Material Project - Katoomba Solitary Restaurant (W958-164)

C 1,440

Plant & Equipment - BM Theatre & Community Hub

OT 975

LEP Property Acquisition OT 58,746

Stra

tegi

c an

d

Go

vern

ance

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

BT Program delayed. Tender under review.

350,000 360,790 4,580

AWP 171 Hazardous Material Project Katoomba/Leura Preschool (W958-122)

C - - 7,500


Status at 31 December 2018



19/20

Revised Capital

Budget* 19/20

Capital Expenditure

to 31 Dec 2019

PROTECT

Res

ou

rce

Rec

ove

ry &

Was

te R

eso

urc

e

Man

age

men

t

AWP 153 Blackheath Landfill site remediation (W937-100)

OT 370,000 370,000 27,329

AWP 165 DWM Heavy vehicle replacement (project 5100)

OT - 1,237,325 -

AWP 167B Plant & Equipment - Katoomba RR & WMF (project 6151)

OT 11,000 11,000 78,450

AWP 167C Plant & Equipment - Blaxland RR & WMF (project 6153)

OT 22,000 22,000 80,750

Wat

er R

eso

urc

e M

anag

emen

t

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

OT - 134,500 -

AWP 38 Drainage Upgrade - Piping open channel (specific site will be confirmed based on risk assessment) (W819-316)

OT 100,000 100,000 -

AWP 82 Drainage Renewal - Katoomba (W819-320)

OT - 52,506 3,023

AWP 83 Drainage Renewal - Leura (W819-326)

OT 600,000 600,000 91,789

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

NPC 300,000 600,000 2,298

AWP 112 Lapstone Reserve Sewer System (W819-285)

BT

Tenders exceeded budget. Scope or budget change required to complete the project.

420,000 464,111 552

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

OT - 144,986 26,566

AWP 179 Drainage Capital Works – Luchetti Ave Hazelbrook Floodplain (W819-324)

OT - 29,333 -


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19/20

Revised Capital

Budget* 19/20

Capital Expenditure

to 31 Dec 2019

CARE

Aq

uat

ic &

Leis

ure

C

entr

es

AWP 167A Plant & Equipment - Aquatics (project 5710) &(Project 5730)

OT 150,000 150,000 47,700

Co

mm

un

ity

Dev

elo

pm

ent

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

OT 75,000 85,880 10,880

AWP 20 Implement The Blue Mountains Disability Inclusion Action Plan - Accessibility Upgrades for Parks and Community Facilities – carry-over(W046-100)

OT - 44,000 938

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

OT 60,000 81,360 22,735

AWP 49 Asbestos Removal in Community Halls (W958-100)

OT 60,000 229,428 -

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

OT - 17,721 -

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

OT - 31,757 309

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

R

Rescheduled to enable work to be undertaken with City Deal Library co-design.

- 112,000 -

AWP 152 Glenbrook Hall Roof Repairs (W028-100)

R To be rescheduled for further project planning.

60,000 60,000 -

Cu

ltu

ral D

evel

op

men

t

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

OT 100,000 122,334 6,200

AWP 154 Light Bar Automation Springwood Hub (W949-110)

OT 200,000 200,000 -

AWP 158 Cultural Centre Fire Safety Sprinkler system & Water Tank (W028-650)

W

Contribution to Strata works for the safety system will be made in 2020-21 from the property operating budget.

200,000 200,000 -

AWP 159 Blue Mountains Theatre & Community Hub Forecourt Re-surface (W949-112)

W Project withdrawn in the Quarter 1 budget review.

50,000 - -

AWP 167E Plant & Equipment - Events Management (project 1460)

W

Community events security upgrade- Springwood Hub project withdrawn.

- 60,000 -

Emer

gen

cy

Man

age

men

t AWP 61 Fire Trail Renewal Program (W154-910)

BT

Program interrupted due to fire activity, priorities will be reassessed in Q3

150,000 220,473 -


14





19/20

Revised Capital

Budget* 19/20

Capital Expenditure

to 31 Dec 2019

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

BT

Additional funding required to carry out necessary works to Athol Cottage.

- 43,982 1,800

AWP 95 Blaxland RFS Demolish & Rebuild (W028-782)

C Complete. Project currently in Defects and Liability period.

- 38,739 -

AWP 172 Valley Heights RFS Upgrade (W028-848)

OT

Works deferred until end of February due to busy fire season. On track for completion in Q3.

- - 1,500

Lib

rari

es &

Info

rmat

ion

AWP 163 Annual Refresh of Library Collection (project 5600)

OT 333,377 333,377 163,382

Spo

rt &

Rec

reat

ion

AWP 26 Upgrade Recreation Facility at Knapsack Park (W154-990)

BT

Project timeline revised to reflect commencement of design in January.

100,000 148,550 -

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

BT

Delayed due to staff resource shortages. Due for completion by year-end.

500,000 987,937 11,063

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

OT 200,000 304,923 41,746

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

R 100,000 107,808 -

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

OT 50,000 - 1,700

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

OT 20,000 20,000 5,622

AWP 107 Warrimoo Oval Carpark Upgrade (W154-992)

BT

Delay to due to resource shortage. Completion expected by year-end.

40,000 40,000 -

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

OT - 568,497 111,532

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

OT 150,000 150,000 96,798

AWP 155 Softfall replacement program (W154-943)

OT 40,000 - -

AWP 160 Springwood Country Club Roof (W028-846)

W

Project to be deferred to allow development of project management plan.

200,000 200,000 -

AWP 162 Upgrade to Summerhayes Park Play Space (W154-860)

OT 100,000 100,000 -

AWP 173 Wentworth Falls Lake Reserve Upgrade (W154-979)

C - - 3,680


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19/20

Revised Capital

Budget* 19/20

Capital Expenditure

to 31 Dec 2019

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

NPC - 68,399 -

AWP 183 Popes Glen - BBRF Grant (W962-140) NPC 275,000

AWP 184 Hargraves Lookout - BBRF Grant (W OT 15,000

LIVE

Bu

rial

s

&

Ash

es

AWP 43 Cemetery Asset Renewal Program (W596-120)

OT 0 58,000

68,000

14,656

Cit

y P

rese

nta

tio

n

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

OT 0 60,000

65,000

44,571

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

R Reschedule and re-scope for 2020/21.

-

99,000

2,100

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

OT 100,000

100,000 -

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

OT 40,000 40,000 -

AWP 13 Implement Hazelbrook Masterplan: Village Centre Carpark Upgrade [Carryover] (W923-252)

BT Interim measure designed to be implemented Q3.

863,000 881,717 21,000

AWP 17A BBRF Blackheath Town Centre Revitalisation Grant projects (W962-110)

OT 2,014,000

217,058

22,705

Cit

y W

ide

Stra

tegi

c

Pla

nn

ing

AWP 133 City Deal funded projects (W959-100)

OT -

-

130,452

MOVE

Tran

spo

rt &

Pu

blic

Acc

ess

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

OT 50,000

209,812

132,047

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

OT 100,000

100,000 -

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

C

100,000

253,604

149,337

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

OT 3,200,000

3,200,000

240,194

AWP 79 Traffic Facilities Renewal (W736-508)

OT

140,000

344,520

221,853 AWP 80 Bridge Renewal based on Inspection Reports (W732-153)

OT - 71,398 26,872

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

OT 200,000 206,048 82,673

AWP 104 GBMT - Blackheath to Mt Victoria Section BBRF Grant (W962-120)

C

Project is on hold. Route impacted by the proposed highway duplication. The trail

-

236,552 -


16





19/20

Revised Capital

Budget* 19/20

Capital Expenditure

to 31 Dec 2019

that can be delivered has been done. Further work with TfNSW.

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

C

Feaseabiltly and design phases have been completed. Active Transport Grant for construction to be submitted February 2020

-

-

17,213

AWP 164 Heavy Plant and Light vehicle replacement (project 5100)

OT 4,162,192

2,924,867

1,108,240

AWP 170 Fitzroy and Gladstone Streets Leura (W741-100)

OT -

50,000 -

AWP 176 Safer Roads Program - Glenbrook Rd & Levy St Glenbrook (W741-110)

OT -

150,000 -

AWP 177 Safer Roads Program - Prince George and Wentworth St Blackheath (W741-120)

OT -

175,000 -

AWP 178 Safer Roads Program - Wilson St Katoomba (W741-130) OT

-

225,000 -

AWP 123 Explorers Tree Maintenance (W923-257)

OT -

-

900

THRIVE

Eco

no

mic

Dev

elo

pm

ent

&

Tou

rism

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

OT

325,000

325,000

20,220

AWP 161 Echo Point Security Upgrade (W961-100)

OT

63,813

533,681

57,138

TOTAL $17,689,382 $20,768,028 $3,700,976 *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.


17

Other Operational Plan Actions

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

95% of Operational Plan actions were On Target as at 31 December 2019. The Council has committed to deliver 218 individual actions in 2019-2020. Of those, 11 (or 5%) were Behind Target, and 4 have been withdrawn. Only those projects that were Behind Target, Rescheduled or Withdrawn are presented below. The Annual Report will provide more details on all 2019-2020 actions and projects.

The following table presents the details for the 5% of Operational Plan actions that were Behind Target, and details for those projects that were Withdrawn / Rescheduled as at 31 December 2019. Actions that have been Withdrawn or Rescheduled are not included in the calculations.

Summary of Operational Plan Actions – Behind Target, Withdrawn, Rescheduled

Service Operational Plan Action Status at 31

December 2019 Comment

Note: The items below only represent those actions that were Behind Target, Withdrawn or Rescheduled LEAD

Stra

tegi

c &

Go

vern

ance

D1202.02 Review Council’s meeting practice and align it to adopted Code of Meeting Practice (AMS 4b)

Behind Target Meeting practice reviewed and aligned to the Model Code. Training to be completed for finalisation of the project.

Review and maintain the Council’s Corruption Prevention Framework (AMS 4d)

Behind Target

Reviewed the existing framework. Implementation and assignment of responsibilities is suspended while we await finalisation of the Office of Local Government Risk and Audit Framework.

Cit

y W

ide

Stra

tegi

c P

lan

nin

g

D1411.09 Support achievement of the Regional Strategic Alliance Business Plan for 2019-2020 including ongoing focus on procurement, tourism, waste and asset management regional initiatives (FFtF 6d)

Withdrawn Withdrawal from the Regional Strategic Alliance adopted by Council in Quarter 1.

Commence development of the Priority Infrastructure Strategic Plan (FFtF 6c)

Behind Target Scoping paper to be developed as discussed with Director.

Consider best uses for former Katoomba Golf Course as part of the Katoomba masterplan

Withdrawn Consider as part of D4101.04 – Preparation of a masterplan for Katoomba as a strategic centre.

PROTECT

Nat

ura

l

Envi

ron

men

t

D1421.02 Implement Carbon Abatement Action Plan actions for 2019-2020 (FFtF 6e)

Behind Target Program delayed. Tender under review

D1421.03 Participate in the Cities Power Partnership and implement initiatives that proactively address and respond to climate change (FFtF 6e)

Behind Target Program delayed.


18

Service Operational Plan Action Status at 31

December 2019 Comment

D2231.02 Refer to strategy 1.4c [D1421.02, D1421.03]

Behind Target Program delayed.

Wat

er

Res

ou

rce

Man

agem

ent

D2112.03 Complete development of the Urban Stormwater Catchment Strategy

Withdrawn Captured as part of Water Sensitive City Strategic Plan

CARE

Co

mm

un

ity

Dev

elo

pm

ent

D3111.04 Deliver 2019-20 priority community development actions and programs identified in the: • Ageing Strategy, • Disability Inclusion Action Plan • Child, Youth and Family Strategic Plan [Refer to actions: D3151.02, D3142.02, D3131.02]

Behind Target

Draft Child Youth and Family Plan has been prepared and circulated with Alliance membership. Identified changes to be made and briefing to Councillors proposed for early 3rd Quarter. Purchase of Low-floor bus to be finalised, at which point consultation and promotion will be progressed.

D4221.02 Continue to work with NSW Police, community agencies and residents in progressing the Community Safety Strategy

Behind Target Draft Strategy has been prepared. Distribution and consultation delayed. Finalisation now anticipated by Q4.

Envi

ron

men

tal

Hea

lth

& R

egu

lato

ry

Co

mp

lian

ce

D1115.03 Develop and progressively implement digital forms and digital end to end business processes (AMS 4a)

Behind Target Rollout was delayed to confirm security of data controls and protocols are in place.

MOVE

Tran

spo

rt &

Pu

blic

Acc

ess D5143.02 Refer Strategy 5.1.e

(D5142.02) & (D5142.03) Behind Target New traffic engineer resource to commence Jan

2020

D6301.02 Progress development of an External Agencies Infrastructure Plan

Withdrawn Withdrawal due to resourcing constraints.

D5111.02 Continue to work with Great Community Transport on sustainable and affordable transport options for community groups

Behind Target Awaiting reply from Great Community Transport on draft Agreement.

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

19

Quarter 2 Budget Review Statement 2019-2020

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. 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. The following information details the budget review statement to the end of December 2019 in accordance with the requirements of the legislation. 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.

Financial Highlights Cash and Investments at 31 December 2019 are $35.9 million;

Services are on track and within Budget;

Some financial KPI’s are behind the 2019/2020 budget projections;

Significant budget variations relate to the delay of the Visitor Infrastructure Investment Strategic Plan implementation, the recoupment of investment losses, reduced landfill fees and the rescheduling of Assets Works Projects.

Working Capital Position The optimum level of working capital for the Council has previously been identified in the range of $1.7 million to $1.9 million, which represents the industry standard to allow for stores and the provision of core debtors. Subject to the Council adopting the recommended variations, the estimated working capital of $1.7million is within the optimum range. The following reconciliation illustrates the projected Working Capital position as at the 31 December 2019 review. Working Capital Position

$‘000

Actual Working Capital Result – 1 July 2019 2,585

Original Budget 2019-2020 Forecast Improvement in Working Capital 0

Quarter 1 Movement -885

Quarter 2 Movement 0

Estimated Working Capital Result – 30 June 2020 1,700

20


Operational Budget – Significant Variations Operational Budget Favourable Unfavourable

$‘000 $‘000

Additional Greater Sydney Local Land Services Grants income and expenditure budget

$100 -$100

Reduced income and transfer to reserve budget due to rescheduling of VIISP program

$679 -$679

Employment savings due to vacancies, transferred to reserve for walking track capital works and maintenance

$275 -$275

Addition of RFS Budget funded by Grant Income $654 -$654

Budget adjustment of fees and waste levy due to reduced landfill received at Waste Management Facilities, funded partially by reserves

$1,189 -$1,189

Additional budget for Carbon Abatement Program Street Lighting funded from reserve

$790 -$790

Refund of Emergency Services Levy $284 $0

Recoupment of investment losses $317 $0

Additional budget for special project consultants $0 -$75

Additional budget for Mayor Reference Group and Enforceable Undertaking $0 -$32

Additional communications budget $0 -$162

Additional budget for WHS Consultancies, Equipment and First Aid training $0 -$48

Gross Budget Variation as at Quarter 2 $4,288 -$4,004

NET TOTAL $284

Asset Works Program Summary

Total 2019-2020 budget* $25,087,134

Total Dollars spent as at 31 December 2019 $4,373,661

Percentage spent 17%

Percentage of projects on target or completed** 89%

*Includes funding carried over from 2018-2019, recommended / 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.

Note: As this is a 12 month program, the majority of construction occurs in Quarters 3 and 4.

21


Asset Works Program (AWP) – Significant Variations Significant Variations for AWP Budget 2019-2020 Favourable Unfavourable

$‘000 $‘000

Additional budget for Walking Tracks capital works funded from reserves and operational savings

$300 -$300

Reduced budget due to re-scoping of Hazelbrook Village Centre Upgrade transferred to reserve

$650 -$650

Reduced budget due to rescheduling Workplace Accommodation Improvements $500 -$500

Reduced budget due to withdrawal of Parks & Playground Toilet Refurbishments $108 -$108

Reduced budget due to withdrawal of Cultural Centre Fire Safety Upgrade project, to be funded in 20/21

$200 -$200

Additional budget for Community Notice Boards funded from reserve $12 -$12

Reduced budget due to withdrawal of Springwood Country Club Roof project, transferred to reserve

$200 -$200

Reduced budget due to withdrawal of Springwood Hub Community Events Upgrade project transferred to reserve

$60 -$60

Reduced budget due to rescheduling Glenbrook Hall Roof works transferred to reserve

$60 -$60

Additional budget for Southern Scenic Escarpment project funded from reserve $497 -$497

Additional budget for Glenbrook Footpath program funded from reserve $200 -$200

Gross Budget Variation as at Quarter 2 $2,787 -$2,787

NET TOTAL $0 $0

Cash Flow The Council’s cash and investments position has decreased by $1.3 million from a balance of $37.2 million at 30 September 2019 to a balance of $35.9 million at 31 December 2019 as presented below. This decrease is in line with the expected cash position for this part of the financial year. The graph below displays:

The level of cash each quarter from June 2017 to December 2019.

The movement up or down for each quarter.

22


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 major infrastructure projects is considered appropriate and prudent as it provides for intergenerational equity in sharing the cost of these projects. 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 June 2013 special variation for renewal of infrastructure replaced the previous program of annually

borrowing $2.3 million 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 and Investments Responsibly, the Council is committed to: - cease future loan borrowings subject to a business case; - reduce existing loan debt refinancing; - direct surplus cash funds to reduce borrowings where appropriate; - review borrowing capacity annually; - implement the Council’s Investment Policy and Strategy. The loan position of the Council was $28 million at 1 July 2019. As shown in the bar chart below, the Council’s projected loan balance as at 30 June 2020 will be $24.3 million.

Implementing this Strategy is fiscally responsible and could see the Council’s Loan Balance Outstanding reduce to a projected $8.2 million by 2025-2026, if there were no further borrowings. 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

$- $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

19/20LTFP

Projection

20/21LTFP

Projection

21/22LTFP

Projection

22/23LTFP

Projection

23/24LTFP

Projection

24/25LTFP

Projection

25/26LTFP

Projection

Projected Loan balance outstanding as per LTFP

23


the City. Importantly, borrowing for major essential infrastructure projects is considered entirely appropriate and prudent as it provides for intergenerational equity in sharing the cost of these projects where benefits will be realised in future years.

Special Rate Variation 2015 In the 2019-2020 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 year to date figures. Special Rate Variation 2015 Budget review

24


Budget Variations This quarter, it is proposed to insert budget of $659,000 from SV2 reserves to fund Community Notice Boards, the Southern Scenic Escarpment project and Walking Tracks capital works. Outcomes Nearly all of the Asset Works Program projects funded from SRV2 were started as of the end of Quarter 2, however, in some cases no SRV2 funds were spent yet, as it is assumed that grant funding is spent prior to SRV2 budget. For the Environmental program Council continues to develop, implement and monitor the following programs which are on track: - Bushland & Endangered Ecological Community Management - Noxious and Environmental Weed Control - Natural Area and Visitor Facilities - Environmental Education and Engagement - Aquatic Monitoring and Catchment Health.

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.

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

25


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%

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 2019-2020

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%* -6.9%

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% 81.3%

Debt Service Ratio Percentage of the Council's total revenue used to service debt <20% 6.7%

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

26


Measure Description 2019-2020 Target



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



November

Not yet available

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

27


Report by Responsible Accounting Officer The following statement is made in accordance with Clause 203(2) of the Local Government (General) Regulations 2005. It is my opinion that the Quarterly Budget Review Statement for Blue Mountains City Council for the quarter ended 30 December 2019 indicates that Council’s projected financial position at 30 June 2020 will be satisfactory at year end, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure. Signed:

Hailie Ryzak, Responsible Accounting Officer Date: 26 February 2020 Note: The following pages form part of Blue Mountains City Council's Quarterly Budget Review Statement (QBRS) for the quarter ended 31/12/19 and should be read in conjunction with the other sections in the Quarterly Budget Review Statement above.

28


Income & Expenses Budget Review Statement Income and Expenses – General Fund

29


Income & Expenses Budget Review Statement continued

Recommended changes to revised budget

Budget Variations being recommended include the following material items:

Variation Amount ($’000) Details

(3,195)

620

691

331

(110)

576

(10)123 Consultants : Additional budget for Special Projects $85k, WHS $28k and Enforceable Undertaking

$20k, offset by decrease in Aquatics Consulting

User Charges & Fees: Removal of Echo Point Parking Fees and Camping Ground Fees budgets due to rescheduling of VIISP program, and reduction of Landfill Fees due to reduced waste received at Waste Management FacilitiesFines & Other Revenues: Increase income from recoupment of CDO investments

Employee Expenses: Increase budget for Enforceable Undertaking $17K, Parks casuals budget $120k, Communications $30k, WHS Training, additional budget to cover Cultural Development Project Officer and Mayoral Reference Group, offset by transfer of budget to Walking Track works backlog ($275), and reduced budget due to rescheduling VIISP program

Grants & Contributions - Capital: Additional Income for Wentworth Falls Lake upgrade grant received in arrears

Materials & Contracts: Budget increases for additional grants expenditure $477k, Carbon Abatement Action Plan Street Lighting $790k, Rural Fire Service expenditure $655k, Communications $132k, Walking Track backlog works $75k, Anzac traffic plans support, WHS Equipment, Mayoral Reference Group, and Enforceable Undertaking, offset by decreased budget due to VIISP rescheduling ($323k), Non Domestic Waste Levy $975k, and RSA dissolution ($280k)

Grants & Contributions - Operating: Increase in Visitor Facility Grants $206k, Rural Fire Service Grant $583k, Aborigine Community Development Grants $37k, and Natural Area Grants $135k, offset by reduction in RSA Grant ($280)

Legal Costs : Budget decrease for Safety and Risk

30


Capital Budget Review Statement

Asset Works Program – General Fund

31


Capital Budget Review Statement continued Recommended changes to revised budget

Budget Variations being recommended include the following material items:

Notes Details($'000)

Capital Expenditure

(700)

(638)

(290)

200

709

(919) Reserves – Internal: Decrease funding from Asset / Infrastructure Renewal (SV2) ($1,566) and PIF Reserve ($200k), offset by additional funding from Assets Works Program Reserve for Walking Track backlog works $350k

New Assets - Other: Rescheduling of Hazelbrook Upgrade program $650k offset by Medlow Bath Community Notice Board $12k

New Assets - Land & Buildings: Rescheduling of Workplace Accommodation Improvement ($500k) and Cultural Centre Fire Safety Upgrade ($200k).

Renewal - Land & Building: Additional budget for Katoomba Falls Kiosk works $78k, offset by decreased budget for Parks Toilet Refurbishment projects ($108k), Glenbrook Hall Roof ($60k) and Springwood Country Club Roof ($200k)

Renewal - Other: Additional budget for NAVF Walking Tracks backlog works $350k, Echo Point Walking Track works $419, offset by decreased budget due to rescheduling Springwood Hub Community Events Upgrade ($60k)

Renewal - Roads, Bridges, Footpaths: Addition budget for Glenbrook Footpath project.

32


Cash & Investment Review Statement – Externally Restricted Funds

33


Cash & Investment Review Statement – Internally Restricted Funds


34

Cash & Investment Review Statement continued


35

Contracts Budget Review Statement

Consultancy & Legal Expenses Budget Review Statement


36

Key Performance Indicators Budget Review Statement - Industry KPI's Office of Local Government


37

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".

Enclosure - Blue Mountains City Council - NSW Government

Documents