150210 AGENDA EXTRAORDINARY 10 February 2015€¦ · 2. Upgrade and improve heavily utilised rural...

137-139 Oberon Street PO Box 84 Oberon NSW 2787 Telephone: (02) 6329 8100 Fax: (02) 6329 8142 Email: [email protected]

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AGENDA AND BUSINESS PAPERS Oberon Council Extraordinary Meeting Tuesday 10 February 2015 Commencing at 5.00pm at the Oberon Council Chambers

Oberon Council - Agenda and Business Papers – Extraordinary Meeting – 10 February 2015

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Agenda Items page 1. OPENING OF MEETING ............................................................................................................ 3

2. ACKNOWLEDGEMENT OF COUNTRY & PRAYER ................................................................. 3

3. RECORD OF ATTENDANCE ..................................................................................................... 3

4. DECLARATIONS OF INTEREST ............................................................................................... 4

5. REPORTS FOR DECISION ....................................................................................................... 5

05.01 IPART SPECIAL RATE VARIATION APPLICATION .................................................... 5 05.02 HARDSHIP POLICY .................................................................................................... 57 05.03 PROPERTY AND LAND DEVELOPMENT .................................................................. 57

6. CLOSURE OF MEETING ......................................................................................................... 57


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1. OPENING OF MEETING The Mayor welcomed members and declared the meeting open at ….

2. ACKNOWLEDGEMENT OF COUNTRY & PRAYER Council acknowledges that this meeting is being held on the traditional lands of the Wiradjuri and Gundungurra People, and respects the history and culture of the elders both past and present.

3. RECORD OF ATTENDANCE Members Mayor John McMahon (in the Chair)

Deputy Mayor Kerry Gibbons Clr Ian Doney Clr Jill Evans Clr Neil Francis Clr Sam Lord Clr Clive McCarthy Clr John Morgan Clr Kathy Sajowitz

Staff Alan Cairney, General Manager

Gary Wallace, Planning and Development Director Chris Schumacher, Works and Engineering Director Lynette Safranek, Finance and Community Services Director

Sharon Swannell, Executive Coordinator Apologies Nil


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4. DECLARATIONS OF INTEREST File No: Governance/Councillors/Declarations of Interest

A GUIDE TO ETHICAL DECISION-MAKING (Provided by the Independent Commission Against Corruption)

Is the decision or conduct legal? Is it consistent with Government policy, Council’s objectives and code of conduct? What will the outcome be for you, your colleagues, the Council, anyone else? Does it raise a conflict of interest? Do you stand to gain personally at public expense? Can the decision be justified in terms of public interest? Would it withstand public scrutiny? A conflict of interest is a clash between private interest and public duty. There are two types of conflict: Pecuniary – regulated by the Local Government Act and Department of Local Government Non-pecuniary – regulated by codes of conduct and policy. ICAC, Ombudsman, Department of

Local Government (advice only) The test for conflict of interest: Is it likely I could be influenced by personal interest in carrying out my public duty? Would a fair and reasonable person believe I could be so influenced? Conflict of interest is closely tied to the layperson’s definition of “corruption” – using public

office for private gain Important to consider public perceptions of whether you have a conflict of interest Identifying problems 1st Do I have private interests affected by a matter I am officially involved in? 2nd Is my official role one of influence or perceived influence over the matter? 3rd Do my private interests’ conflict with my official role? Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned. When making a Declaration of Interest the reason for making the declaration should be clearly stated. Pecuniary and Non-Pecuniary Significant Interests should be managed by leaving the room while the matter is considered. Pecuniary -

Non-Pecuniary Significant

-

Non-Pecuniary Less than Significant

-


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5. REPORTS FOR DECISION 05.01 IPART SPECIAL RATE VARIATION APPLICATION

File No: Governance/IPART Submission Author: Lynette Safranek, Finance & Community Services Director Summary Council has provided the Community, through public exhibition, a copy of the proposed Independent Pricing and Regulatory Tribunal (IPART) Special Rate Variation Application of 7.5% increase per year (including rate pegging), approximately 43% cumulative. This report is to consider whether or not Council will submit the Application to IPART as it stands or with changes after considering submissions and feedback received from the Community during the public exhibition period. Recommendation: That Council submit an IPART Special Rate Variation Application for 7.5% (including rate pegging) per year (43.56% cumulative increase, made up of an assumed rate peg of 15.25% and additional rate increase of 28.31%) on General Rates, for the period 2015/16 to 2019/20. Comment FOLLOWING is a copy of the Minutes for Community Briefing Sessions, extract of Facebook comments, and Submissions received. This report will provide information from the Community Briefing Sessions, written submissions, effects on the Long Term Financial Plan and rate implications. PUBLIC EXHIBITION AND FEEDBACK The IPART Application was placed on public exhibition at Council’s Administration Centre, Oberon Library and on Council’s Website. Approximately 60 hard copies of the Application were handed out. The public was invited to submit comments until the 6 February. Community Briefing Sessions were held on: Tuesday 27 January 2.00pm Robert Hooper Community Centre, Oberon Wednesday 28 January 7.00pm Black Springs Community Hall, Black Springs Thursday 29 January 7.00pm Burraga Sport and Recreation Club, Burraga Tuesday 3 February 7.00pm Robert Hooper Community Centre, Oberon Wednesday 4 February 7.00pm O’Connell Public School Hall, O’Connell These Community Briefing Sessions saw 47 community members in attendance. Council’s Executive Management also presented the proposal to the Seniors Welfare Committee and the Oberon Youth Council at their meetings. Eleven (11) formal submissions were received, five (5) used the prepared Feedback / Submission Form with four (4) emails, one (1) letter and one (1) comment on the Oberon Council Facebook page.


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SUMMARY OF SUBMISSIONS Following is a brief summary of each formal Submission from comment suggested response L Butterfield good attendance at Black Springs

would only like a 5% increase comments noted no further action proposed

S Butterfield no rate rises for roads until Council can build better roads

comments noted Work Practices, especially road construction and maintenance work is regularly being reviewed

L Maloney apply more pressure on State Govt to fund road maintenance and upgrade with SG to also pay rates or impose a haulage levy on State Forests sell the Leagues Club cut back on annual donations stop attending event in Sydney cut back of staff social donations stop the practice of attending meetings in Black Springs, Burraga and O’Connell does not want staff to be laid off

comments noted OC is liaising with Local MP and will continue to lobby for this subject to a 25 year lease comments noted this is an existing Policy / Practice no staff reductions are proposed

C Lamburn Burraga has above average number of seniors already affected by recent economic changes. Suggest $dollar amount in lieu of %

comments noted, no further action proposed

L Maloney residents on low grade (priority) roads should not pay the rate rise


S Sovik rate rise is large and should not be justified by using 2013 comparative figures believes justified in asking for rate increase but situation does not justify a 7.5% increase. suggest 5% over 5 years. should pursue State Forest to pay rates

comments noted, OC are liaising with Local MP and will continue to lobby for Forests NSW to pay rates.

O’Connell Public School

students would like to see funds spent on items or activities at a recreational ground, such as tennis courts, cricket pitch, athletics, as well as bike & walking paths

OC working with RMS to establish a bike track and OC has allocated funds to look at bike and walking tracks

B Ross No problem with rate rise and allocation on road works but would like them done properly the first time to avoid rework

Comments noted, Work Practices, especially road construction and maintenance work is regularly being reviewed


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S Louden Do not support increase unless Council commits to spend greater portion on O’Connell infrastructure There has been a substantial increase in small acreage in O’Connell over past 30 years with no Council spending to cater for items such as a Hall for community events

Comments noted, Council has allocated funding for the purchase or long term lease of the Anglican Church grounds.

B Doney Totally agree with S Louden letter I would support a rate rise if Council could assure the O’Connell community of a walk/cycle track and sportsground

OC is participating with Bathurst Regional Council and the RMS about a cycleway in vicinity of the O’Connell Public School and the O’Connell Village

A Perry doesn’t see how community will benefit from rate rise. more activities for families. suggests that tourism is a key driver.


PROPOSED SPECIAL RATE VARIATION The rate implication for the ratepayers is demonstrated with the following table:

2015/16 2016/17 2017/18 2018/19 2019/20 Cumulative2.4% 3.0% 3.0% 3.0% 3.0% 15.25%5.1% 4.5% 4.5% 4.5% 4.5% 28.31%7.5% 7.5% 7.5% 7.5% 7.5% 43.56%

Average rates Current 2015/16 2016/17 2017/18 2018/19 2019/20 Avg. Increase

Annual Rate $556 $598 $658 $723 $796 $875Annual Increase 0 $42 $60 $66 $72 $80 $64Weekly Increase 0 $0.80 $1.16 $1.26 $1.39 $1.53 $1

Annual Rate $1,585 $1,704 $1,875 $2,062 $2,268 $2,495Annual Increase 0 $119 $171 $187 $206 $227 $182Weekly Increase 0 $2.29 $3.29 $3.60 $3.97 $4.36 $4

Annual Rate $771 $829 $912 $1,003 $1,103 $1,214Annual Increase 0 $58 $83 $91 $100 $111 $89Weekly Increase 0 $1.11 $1.59 $1.76 $1.92 $2.13 $2

BUSINESS

Annual Rate Increase (%)Rate Peg Increase Only7.5% Special Rate VariationTOTAL ANNUAL INCREASE

RESIDENTIAL

FARMLAND


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Council advised the Community that it aims to raise approximately $1.46 million funding from the rate increase, and it will be used for the following purposes:

Est. 5 year spend

1. Provide additional funds to supplement grading on all rural unsealed roads

15% - $219,440

2. Upgrade and improve heavily utilised rural freight transport routes

Dog Rocks Road 23.0km

Lowes Mount Road 19.3km

Hazelgrove Road 17.2km

Beaconsfield Road 38.5km

Sewells Creek Road 23.0km

Campbells River Road 22.8km

Burraga Road 25.0km

Abercrombie Road 71.5km

80% - $1,170,343

3. Develop asset based data sets 1% - $58,517

4. Repayment of Local Infrastructure Renewal Scheme 4% - $16,629

Non-road infrastructure will continue to receive planned maintenance and any major work required will be addressed on an as needs basis. After a discussion with IPART, there will be a change made to the draft IPART Application for the Delivery Program and Operational Plans to include the above commitments and costings. The following table will enable the Councillors to compare the Net Operating Results (before grants and contributions provided for Capital Purposes) for three different General Rate increases:

Rate peg only increase 5% (including rate pegging) increase 7.5% (including rate pegging) increase

NET OPERATING RESULT (before grants and contributions provided for Capital Purposes)

CONCLUSION With the proposed 7.5% Special Rate Variation, the increase in General Rates will show a positive Operating Result from 2017/18 at which time funding can be allocated to the priorities identified to reduce the infrastructure backlog. With only a 5% increase the Operating Result will remain negative, and with only the Rate Peg this is substantially worse.

Increase 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

Rate peg only (297,758) (550,137) (324,821) (424,953) (494,018) (481,170) (527,101) (640,923) (567,880) (589,138)

5% increase (195,433) (358,878) (188,962) (235,389) (238,468) (199761) (209,202) (319,592) (222,256) (205,918)

7.5% increase (122,813) (203,675) 58,930 116,198 228,846 281,572 266,571 191,055 303,710 335,827

OBERON COUNCIL FACEBOOK PAGE OBERON & O'CONNELL MEETINGS - Community Briefing Sessions to present the proposed GENERAL RATE INCREASE from 1 July 2015 will be held at the Oberon Community Centre on Tuesday 3 Feb at 7pm, and at the O'Connell Public School on Wednesday 4 Feb also at 7pm. 71 people reached Andrew Perry I don't see how the community will benefit from the proposed rate rise. Better roads? I think not! You have enough trouble resealing the roads that don't need it! Free garbage bin cleaning? Because the wheelie bin sits on the curb until after 12 pm before it gets emptied? A new jet patcher? Because you have NO idea about hot mix... More activities for families? Not just the elderly? Wasted money for a dirt boat ramp. You do know there is a concrete ramp next to the dam that's never used? It's time to replace the older councilors with fresh ones who aren't set in there ways. Who aren't afraid of change. Who realise that for Oberon businesses to prosper tourism is the key! Can't just rely on the mills! The faster Oberon Council realises this the better off the community will be. Like · Reply · February 2 at 11:23am Thanks Andrew, appreciate the feedback. The proposed General Rate Increase will provide additional funds to supplement grading on all rural unsealed roads and to improve more heavily used rural freight transport routes (Dog Rocks, Lowes Mount, Hazelgrove, Beaconsfield, Sewells Creek, Campbells River, Burraga & Abercrombie Roads). Like · Reply · Commented on by Alan Cairney · February 2 at 11:43am

BURRAGA MEETING - Thursday 29 January at the Sport & Recreation Ground at 7pm 69 people reached GENERAL RATE INCREASE – A Community Briefing Sessions to present the proposed 5 year General Rate increases from 1 July 2015 will be held at BLACK SPRINGS COMMUNITY HALL on Wed 28 Jan at 7pm and BURRAGA SPORT & RECREATION CLUB on Thur 29 Jan at 7pm 63 people reached GENERAL RATE INCREASE – Community Briefing Sessions to present the proposed 5 year General Rate increases from 1 July 2015 will be held at Oberon Community Centre Tue 27 Jan at 2pm, Black Springs Community Hall Wed 28 Jan at 7pm and Burraga Sport & Recreation Club Thur 29 Jan at 7pm. Another Session will be held at the Oberon Community Centre on Tue 3 Feb at 7pm with a final Session at O’Connell Public School on Wed 4 Feb at 7pm. 127 people reached

COMMUNITY INFORMATION SESSION RESOURCING OUR FUTURE Tuesday 27 January 2015, commencing at 2.00pm at the Robert Hooper Community Centre, Fleming Street, Oberon. Councillor Attendees: Mayor John McMahon, Deputy Mayor Kerry Gibbons, Councillors Sajowitz, Morgan, Evans and McCarthy Staff: Alan Cairney, Lynette Safranek, Chris Schumacher, Jaclyn Burns and Sharon Swannell Community Members – 4 (see attached sign in sheet) Meeting Opened: 2.01pm Alan Cairney – housekeeping and introduction of Councillors and Staff. Mayor John McMahon – welcomed members of the public and outlined the information which was provided last year during the Community Consultation for the CSP including the Council’s current financial position and proposed rates increases. The Mayor also outlined the review which has been undertaken by T-Corp which has identified $16.1 million of infrastructure backlog which represents 13.3% of the infrastructure asset value. Mayor McMahon outlined the roads that have been identified as requiring additional work as they are used for heavy haulage routes. There is no additional infrastructure identified as being required in town, it is considered that rural roads are the main area that we need to spend the additional income. It is roads and maintenance of roads which is the main worry and that is what we will concentrate on. Lynette Safranek outlined the information contained in the long term financial plan. With no rate rise and just rate pegging we are not in a financial position to be able to do any road improvements over the next 10 years. Jaclyn Burns outlined information contained in the Workforce Management Plan. Council has identified the human resources and skills that are required for the future. Reviews were done in May 2012 and again in May 2014. Chris Schumacher presented the findings in the Workforce Management Plan regarding the age of employees and length of service and experience. Clr Kathy Sajowitz presented the process we have undertaken to identify the priority list of roads under our Asset Management Plan.

Clr John Morgan presented information about the “Resourcing Our Future” survey which was sent to all Ratepayers in the Oberon Local Government Area and the feedback received. Council’s belief is that those who are affected have a right to participate in the decision making process. We sought community feedback regarding the proposed rate rise and invited submissions from the public. There were 301 survey’s returned, of these 201 voted for Option 1, 88 for Option 2 and 20 made other comments. Council then considered the submission and decided to put in an expression of interest for a 7.5% rate rise over the next 5 years (including the rate pegging limit). Lynette Safranek presented information about the community consultation process and the timetable for submitting the application. The draft application is now on public display and we are seeking community feedback by Friday 6 February. Comments will be included in the application and submitted to IPART for their consideration. Council will hold a Special Meeting on 10 February where they will consider the submissions received and the application is required to be lodged by 16 February. Alan Cairney called for questions and highlighted the feedback sheet which has been circulated. John Brien asked if the money lost in the investments with the American company were ever finalised and squared up? Alan Cairney advised there are a couple of elements still to be finalised. The majority of our investments have matured and we have received $400,000 back from Lehman Bros. There is still another investment of approx. $400,000 still to be finalised. John Brien commented that I realise there has to be an increase but believe it is too high. Listening to the presentation today I can see you are working for it. No figures have ever come out. The General Manager is given a certain amount of money to pay for wages, has that increased or decreased? Alan Cairney advised the wages budget is reported through financial papers. Lynette Safranek advised that the only increase in wages has been the award increase. John Brian commented that people say Council will do what they want anyway. People are also saying the Council building is full of people, they should be decreasing people and getting out and doing more. Your graph shows some decrease in staff which is good. John Brian asked is it the principle of collecting rates worked on the value of the land the ratepayers own? I own a small block at the top end of town which has increased in value from $76,000 in 2003 to $248,000 in 2012. If you collect rates based on the land values you are receiving huge increases. Alan Cairney advised that when all rates are revalued the total amount Council can collect is apportioned across the whole Shire. Council is only able to increase the rate by the current rate pegging limit. The total rate yield cannot exceed the rate pegging limit. Mayor John McMahon added that rates do not go up in proportion to the total increased value of land. Overall the increase of rates to Council remains limited to whatever the rate pegging level is. John Brian asked why Council works so much overtime. I would like to see that looked at.

Alan Cairney responded. Oberon has recently participated in a Local Government Effectiveness Survey where we are grouped with other comparative Councils. This survey identified that Oberon does have a high level of overtime, which is mainly in the outdoor workforce. The two major jobs on O’Connell Road and two jobs on Abercrombie Road were the main areas and this was a decision made to maximise the amount of time the guys are on the job. Chris Schumacher added that due to the climatic conditions in Oberon we usually only have three to four months opportunity to get the maximum return on roadworks. For the major RMS works on O’Connell Road this was a priority to complete prior to the colder months. Overtime for RMS jobs also shows in our overtime figures. Councillor Kerry Gibbons commented that overtime should be one of the first things to go when things are a bit tight; however it was a major improvement to have the two major roadwork jobs done before the Christmas school holidays. Overtime is an area Councillors are looking at and asking questions about. John Brian commented that you have to have rates to do your work and it has to be increased each year. I would like to thank you, it seems you are looking at things. When things are tight you have to tighten your belt. Councillor Kerry Gibbons replied we are looking at improved work practices. Alan Cairney added that we have held more Councillor Workshops over the past 2 yrs. Councillors have been on three road inspections in the last 12 months where work practices have been examined and we are looking at these opportunities. We are also looking to minimise the use of contractors and increase the skill level of our employees. Chris Schumacher advised up-skilling staff is a priority as it gives us more flexibility to move operators from team to team. Council is pretty fortunate they have been self sufficient for many years and wants to remain financially secure into the future. Alan Cairney advised some of the areas we have been looking at with the workforce is to have casuals available during peak periods such as recently when the grass has been growing like crazy we have put a casual on to adjust for that peak at the moment. The Revenue Officer has recently resigned and this role has been advertised internally and we are looking at these internal positions in an effort to streamline. Chris Schumacher outlined opportunities to potentially reuse product on roads. Some material can be used as a sub-base material, tip sorting, crushing glass, recycling more plastic. Chipping trees so the produce can be reused in the parks and gardens. Councillor Kathy Sajowitz added that with Fit for the Future Program we are looking at joining with other Councils in a Joint Organisation for procurement can get services and facilities cheaper to reduce costs. Chris Schumacher – we have participated in the Centroc Tender for street lighting for a number of years in the bid for cheaper electricity. This is one initiative and there may be opportunities to utilise solar technology to become more sustainable and drive costs down. Centroc electricity contract gives us better purchasing power. Shirley Turner asked is there any possibility that you will join with a larger Council? You should consider that sooner rather than later.

Alan Cairney advised Council will address this separately as part of the Fit for the Future Program. Our challenge is to look at the things the Office of Local Government has highlighted. One of the things is the State Government has indicated we should look at is borrowings which we have done with the Local Infrastructure Renewal Scheme application. The other is to consider a rate increase. We also have to consider those merger options with Bathurst as a separate item. Jenny Parker asked what’s happening with the weeds authority? Mayor John McMahon advised Oberon is still a member of the Upper Macquarie County Council. We have a new Weeds Inspector in this area, Jill O’Grady and she has been very busy since she was appointed approximately two months ago. I have noted from Reports to the Upper Macquarie County Council that she is submitting a lot of Weed Reports. In Jenolan Street a large area of blackberry has recently been sprayed which has been an eyesore for at least 4 - 5 years. Jenny Parker replied there is quite a lot of blackberry next to the Medical Centre in Oberon Street. Mayor McMahon advised if you have problems with weeds please contact either phone the Upper Macquarie County Council, contact myself or Councillor Neil Francis and we will pass on the issue to the Weed Inspectors. There are 6 inspectors which have to cover the 4 LGA’s. They are stretched to the limit and cannot get around to every property in a reasonable amount of time. Every property should be inspected within a reasonably timeframe but this is impossible under the current workforce, particularly with the increase in small holdings across the whole region. Jenny Parker - Council declared in 2014 that they had made a profit. The first thing I saw was a deficit on your website and next I know you had a profit. Now you want a rate rise of 7.5% to cater for this backlog, I don’t see why you need so much. Alan Cairney replied that the net operating result was good, but when you take in the depreciation then it is not as good. The Council is seeking to raise additional funds to cover the existing backlog. Levels of service will deteriorate without an increase. This was information that was included in the Resourcing Our Future survey. Lynette Safranek added that the accounting standard requires us to take into account depreciation which makes us look worse than we are but we don’t have sufficient funds to address the backlog. We do need to work on how we promote it to the community. Mayor McMahon commented that on the operational side of things Council is in a sound position. We are not on our own, every Local Government area are facing the same situation that we are, some a lot worse. Some Council’s are applying for rate increases of 15% and higher. They are all facing the exact same challenges that this Council is facing as a result of the T-Corp findings. Jenny Parker - isn’t there any money that comes in from the people who use the roads? Mayor McMahon replied that the roads are valued and every year they are depreciating. All State Forest land is non-rateable. We are trying to address this with the State Government all the time. One of the recommendations from Professor Samson’s report into the Future of Local Government was that State Forests should be rated the same as the Private Forests. They are in competition with private forests that are paying rates.

Councillor Gibbons added that the State Government has contributed substantially to roads in the area over previous years, but over last couple of years they have not put any money forward. Over last 30 years they purchased farming land which was rateable and it then it becomes non-rateable as it is owned by the State. Jenny Parker asked what about the logs going into town for export to China? Mayor McMahon advised Council is not able to apply a levy to State Forests. They are not required to lodge a Development Application for their activities as they are classified as agricultural. The State Government is not responsive to any suggestion about paying rates. Veronica Cvitanovic – the document contains assumption on page 11 about consideration of community capacity and willingness to pay. It states that the Oberon LGA is unique and has a significant number of ratepayers live outside the Shire. It assumes the majority of these ratepayers are high income earners. Oberon is not the only Council area within close proximity to Sydney and we are not specifically unique. To stay that everyone who has a lifestyle block is a high income earner is absurd and a ridiculous assumption. It is more likely that they are families who own blocks for recreational purposes and do not have an excessive income, you cannot assume this. The timeframe for advising everybody about the previous community meeting held in November was not long enough. People hadn’t even received the notice when the meeting was held. It was a nice change for Council to directly mail something to every ratepayer but the whole process has been rushed. In one of the meeting minutes it said that this process was going to be discussed over the next twelve months, that was only seven months ago. Wollondilly are also applying for a special rate variation and their consultation was for two months before they even put in their expression of interest. This process has been really rushed. If you are going to do it this year, you really need to get on top of it. Alan Cairney replied that we take these comments on board but we don’t have the same level of resources that Wingecarribee Shire has. We are one of the only Councils in NSW who have never applied for a Special Rate Variation and one of the reasons is probably because we are short of the resources that a lot of larger Councils have. We are going through the process as well as we can and are trying to engage with the community better and have definitely improved this but we acknowledge there is still room for further improvement. Chris Schumacher noted the notification period did extend over Christmas and the meetings were advertised prior to the Christmas period and that has probably clouded a lot of people’s perception of the timing of these meetings. Veronika Cvitanovic replied that the first I saw of the meetings was in last Thursday’s paper. You have 370 facebook followers. Were the dates advertised in the community newsletter? Lynette Safranek advised that it was. Mayor McMahon thanked those who attended today. We mailed out 2500 survey’s and only received 300 responses. Councillors are here to represent the ratepayers and if they are not responsive we need to second guess what their opinion is. We like to see a good cross section of people coming to these meetings. Council’s rely on ratepayers to tell us what they think about these things and we go on public opinion. We have to take into account the viability of the Shire and a lot of times Councillors have to make decisions that are unpalatable.

Jenny Parker – it is fair enough to put the rate up but I think everyone needs to be told how it is going to be spent and why it is needed. Mayor McMahon replied that under this round of consultation that we are trying to give this feedback. We have this level of debt that we have to service. It is not a debt that we have incurred ourselves, but is due to a change of accounting standard. Veronica Cvitanovic asked didn’t the Auditor address that at the Council Meeting? Didn’t he say you shouldn’t take any notice of the depreciation? Lynette Safranek replied yes he did say that but it is an accounting standard requirement. Mayor McMahon asked have you received a clear response as to what we are going to do with the money – is everybody happy with the explanation given here today? John Brien – yes I am happy with what you are telling us. Jenny Parker commented until you give us a full breakdown we won’t really know. Councillor Morgan added that the name of the roads and the length of the roads the funds will be spent on are all contained within the document. John Brien – thanks for trying to explain, believe if you look hard at the internal works and come back and say we can drop to 4.5% a lot of people would be very happy. Meeting closed at 3.24pm.

COMMUNITY INFORMATION SESSION RESOURCING OUR FUTURE Wednesday 28 January 2015, commencing at 7.00pm at the Black Springs Community Hall, Dog Rocks Road, Black Springs. Councillor Attendees: Mayor John McMahon, Clr Ian Doney, Clr Kathy Sajowitz, Clr Jill Evans, Clr Neil Francis and Clr Kerry Gibbons Staff: Alan Cairney, Lynette Safranek, Chris Schumacher, Jaclyn Burns and Sharon Swannell Community Members – 6 (see attached sign in sheet) Meeting Opened: 7.03pm Alan Cairney – housekeeping and introduction of Councillors and Staff. The Mayor welcomed community members and thanked them for attending. Michelle Swaan asked how did you inform people about the meeting, I only saw it on the community noticeboard here today. Mayor McMahon replied that this is one of the challenges we face, we mailed a survey to all ratepayers and only received 300 responses. We try all methods we can think of and the messages are not getting through. Steve Butterfield commented that people say no matter what you do or say, Council will do whatever they want. Mayor McMahon replied the only way to influence Council’s mind is to attend the meetings and express your opinion. Tonight we will give an outline of why we are seeking an application for a Special Rate Variation above the rate pegging limit. I am convinced that we do need an increase over the rate pegging limit. Rate pegging is currently set at 2.4%, which doesn’t even cover the 4% annual wage increase. Council is the same as everyone else we are all facing increased costs and without increased income the level of service has to be reduced. Michelle Swaan commented in a heavy vehicle traffic area the roads need to be up to standard. Steve Butterfield asked didn’t you invest a lot of money overseas? Lynette Safranek replied that from our investments we only lost approx. $400,000 and we are still in a battle to get some of that back.

Alan Cairney advised a lot of organisations sustained losses through these type of investments. Mayor McMahon commented with the Lehman Bros investments we have done very well to recoup a lot of the money that we have. At one stage a few Councillors wanted us to liquidate the investments at around 8% of their face value. Fortunately the majority of Councillors voted to hold on and continue to trade and we continued to receive dividends and have seen a number of the investments mature. Clr Jill Evans outlined initiatives Council are taking to reduce costs. Steve Butterfield commented I see a lot of new machinery all the time, have you looked into hiring it instead of buy it. You aren’t using the machinery all the time, have you thought of hiring? Mayor McMahon replied that we have looked at hiring contractors and it is not a sustainable practice. It’s not possible to expect to have heavy machinery on call and hire companies need to make a living. Brian Ross asked if it is possible to lobby the State Government to try to raise rates from the non-rateable portion of the Shire. Mayor McMahon advised that one of Professor Sansom’s recommendations from the Independent Local Government Review was to look at rating land that State Corporations make an income from and we will continue to push this and we do agree that they should pay some kind of levy. Steve Butterfield asked if State Forests were privatised would you still try to get money out of them? Alan Cairney replied that the State Government has made Forests a corporate entity and they use that funding to raise an income to run the State. Steve Butterfield asked about the way some Council’s own businesses, in this case do they pay rates to themselves? Do you pay anything on the football ground that Council bought and own? Alan replied no. Councillor Jill Evans outlined Council’s initiatives for cost savings including plans to create more efficient work practices, hold more councillor workshops, staff training, field days and demonstrations. We plan to reduce staff numbers through natural attrition. Realise savings through enhancements in computer technology, participate in Centroc sustainable programs and cost saving programs. Steve Butterfield asked do you really have more office staff than workers? No Michelle Swaan commented at the moment there is no late payment fee for rates so if you are going to an external debt collector will that change? Lynette Safranek advised that there is no late fee but there is interest charged, this will remain unchanged.

Jaclyn Burns presented an overview of the Council’s Workforce Management Plan. Council has undertaken a review of the potential skills required into the future and identified any gaps. Chris Schumacher provided an overview of the study of the Workforce Management Plan, in 2012 there were 46% of employees with less than 10 years service. By 2014 this has decreased by 30%. Michelle Swaan asked do you have opportunities to attract young people into apprenticeships while you still have senior people around to train them? Alan Cairney replied we recently transitioned our mechanical apprentice to a full time role to come on board while the senior mechanic is phasing in retirement. Steve Butterfield asked with roads themselves does Council automatically get the job of upgrading the road. Alan Cairney replied we have a workforce and we want to deploy that workforce. Steve Butterfield asked would contractors do the work cheaper and better in the long run? You have re-tarred two sections of road you sealed last year. In a place like Oberon wouldn’t it be better to tar thicker? Alan Cairney replied that the second seal on these works was always planned. Council has addressed the poor work practices from last year. Councillor Kerry Gibbons added that the critical aspect is the road base, not the thickness of the seal on top. We recognise that skills have to continue to be increased. We do hire in machinery when we need to. Councillors need to make sure things are utilised and contractors fill a few gaps when needed. We are improving and we are monitoring and we have to work right and do it once. Alan Cairney added that Council has no plans to reduce our workforce and not do the work that we are doing. We should be able to do a lot of these works ourselves, we know the area and we are local. Steve Butterfield added the shoulders are too high on the recent jobs. Michelle Swaan added it is better to have a wider shoulder. Councillor Ian Doney presented an overview of the Asset Management Plan for roads. It is proposed that the additional income from the Special Rate Variation will be devoted to the backlog in road maintenance. We have debated sealing of additional roads for a number of years and have recently reversed that decision. We will continue to seal a smaller portion of roads which are identified with higher traffic volumes in the future. Steve Butterfield - I was told 20 yrs ago they were going to finish sealing Beaconsfield Road and they never did it. They allocated the money and then used it on something else. Councillor Doney replied our intention is to continue to seal 1 – 2km per year within our means. Steve Butterfield asked would it be more practical to use contractors to do all the grading on gravel roads? You need more knowledge to work on sealed roads, gravel roads can be graded by less skilled people then you can teach your own staff to do better roads.

Chris Schumacher replied we are in a better position to attract revenue streams by doing external jobs. We are definitely in front by completing work ourselves. Councillor Ian Doney added we have decided to focus on a better grading program and also a better Asset Management Plan of the roads we have. We are working hard to upskill employees. Councillor Gibbons added we are not going to jeopardise the workforce by bringing in extra contractors. Mayor John McMahon advised we have to maintain a workforce for 12 months of the year. Major roadworks are only a small part of what we do. Work on O’Connell Rd and Abercrombie Rd doesn’t take up the full 12 months of the year. The work needs to be spread across the year. Steve Butterfield commented that a resident on Tilsbury Lane often complains about having his road graded and that it needs gravel. It takes 5 – 10 years to get more gravel. He has a business up there and he needs a decent road. Michelle Swaan asked what will happen with Dog Rocks Road? Alan Cairney advised we have identified the heavy vehicle transport routes and these are the highest priority. Michelle Swaan asked will the rate increase will go specifically to those roads? Mayor John McMahon replied yes that is the intention. These roads carry the bulk of the heavy transport. Dog Rocks Road is utilised by farmers and residents from this area to travel to Carcor. Beaconsfield Road is heavily used as a direct route for Black Springs residents to travel to Bathurst. These roads have been identified as needing additional attention. Michelle Swaan asked what else do you want money for? It can’t just be that? What about parks and all other items? Lynette Safranek answered the additional funds are for the backlog, all other areas will continue from our current budget as required. Councillor Kathy Sajowitz provided information about the Resourcing Our Future Survey. In the 2014 Draft Community Strategic Plan there was a proposed rate increase of 15% in the first year followed by 10% in the second year. When we received the report from T-Corp which identified the Council’s infrastructure backlog we needed to identify how we would address this backlog. We decided to go out to the community and seek their feedback. We cannot apply for a Special Rate Variation without the community agreement. We sent out 2500 surveys, offering 2 options. Option 1 was for a 10% rate rise, the second option was a 5% increase, which didn’t address the backlog. We received 309 responses, which is 12% of the community. 75% of the responses or 201 people chose Option 1. 88 responses chose Option 2 and 20 other. When Council considered the responses they decided that 10% may be too much so we opted for 7.5% which includes the rate pegging limit. Just because we apply to IPART, doesn’t guarantee we will receive the rate increase, we have to justify why we need the increase.

Steve Butterfield commented there was an article in the paper saying the Government has increased land value so that will mean rates will go up regardless? Mayor John McMahon replied this is capped at the rate pegging level. Some people may receive an increase and some may receive a decrease. The overall net result will not exceed the 2.4% rate pegging level. The rating structure is based on land valuations and every five years there is a revaluation done. This is done by the State Government Valuer General’s Office. Lynette Safranek provided an outline of the Special Rate Variation application, and encouraged attendees to please take the time to have a look through it. The document includes comparisons between Oberon and like Council’s such as Blayney, a Hardship policy and notes about previous discussions held by Council. Steve Butterfield commented if you put rates up too much maybe Bathurst rates will be cheaper and people will think that it may be cheaper to be part of Bathurst Brian Ross asked can IPART decide 7.5% is too much and give you a lesser amount? Lynette Safranek responded yes that is possible. Steve Butterfield commented I would rather see us stay at CPI. It will be hard for people to find extra to cover this. Michelle Swaan said from the response here they will say your ratepayers don’t care. Steve Butterfield added we only found out about the meeting from the paper. Michelle Swaan asked where do we stand as our little village? Lynette Safranek replied this rate increase will only affect the general rate, it is not applied to any of the extra services the town receives. Councillor Kerry Gibbons replied I wasn’t too happy when the tip went to only opening every fortnight, maybe the community could get together to see if that could be reviewed. Michelle Swaan suggested Council could turn The Reef into a massive money spinner. Lynette Safranek advised we need the community to speak up and let Council know what they need and what is lacking. Michelle Swaan - there was talk years ago about putting sewerage in the Black Springs Village, I never heard the outcome of that. What was the final decision? Steve Butterfield replied they were going to take the greywater away and keep the solids in a holding tank. Alan Cairney replied that the Community Strategic Plan has been in place for 3 years now and as part of the development of the CSP and any community consultation that has not been raised as a priority for Council to consider so it is not in the plan at all. Mayor John McMahon added the increased income will be spent entirely on roads. A question was asked about town facilities in Oberon and it was decided that unless there is a fairly sizable increase in the town population we consider the current facilities such as the Council Chambers, Community Centre and Library are adequate for the next 5 yrs.

Michelle Swaan - so the extra will only be for roads? Yes Michelle Swaan commented I feel you should really chase after Forestry, they are killing the roads. They are heavy vehicles and need the roads to be built to a certain standard. I am constantly getting smashed windows and tyres damaged. Steve Butterfield added if you got rates from the State Government you wouldn’t need this increase at all. Michelle Swaan asked is there anything in the pipeline for there to be town water in Black Springs? No. Alan Cairney asked the community members present if they are interested in receiving a kerbside garbage collection service? Michelle Swaan answered yes, I don’t have a 4wd to take rubbish to the tip. Outlying farmers don’t want that but in the Village I would welcome it. Mayor John McMahon recalled that when the kerbside collection first started in Oberon I wasn’t too happy with it as I had a ute and could get rid of my rubbish. Now I think it is the greatest service you can have and the cost is minimal. If people want a garbage service Council can supply it but it doesn’t come for nothing, we pay a garbage levy in town. Steve Butterfield said then farmers wouldn’t be able to get rid of their rubbish, they would dump it in the forest. Michelle Swaan added the tip would need to stay for the outlying areas. Chris Schumacher asked if that would be inclusive of a recycling service as well? Alan Cairney replied we would probably look at a community recycling service. Councillor Gibbons advised if there was a kerbside collection service in Black Springs every household would have to be involved in it. Michelle Swaan confirmed I would like it. The other option is to open that tip up more often. It isn’t documented which dates in the weekend it is open? This information is on the council website. A copy of the tip opening dates will be forwarded to Michelle Swaan. Michelle Swaan asked is there any way that Council can help with getting the Black Springs shop open? Alan Cairney replied no that is private enterprise. Brian Ross confirmed the 7.5% increase will only be spent on roads with priority on the heavy haulage routes? Alan Cairney confirmed yes on the roads we have previously mentioned.

Mayor John McMahon added that additional work will also be carried out on a number of gravel roads that carry a lot of traffic. Chris Schumacher advised the hierarchy of maintenance is determined by the usage. We also look at other grant opportunities, roads to recovery etc. we are in a better position when we can match funding $1 for $1. Mayor John McMahon asked is everyone clear on what Council is endeavouring to do? We are trying to make it clear what we are going to do with the additional funds. We are going to have another meeting in Burraga tomorrow night and next week one in Oberon Tuesday evening at 7pm and O’Connell Wednesday evening at 7pm. We will cover the whole Shire and out of that we will receive the community feedback. I invite you to put a submission in to the Council so it can be considered. Councillor Kerry Gibbons added we want to stress that we are working on the efficiency side of things too, through training and us getting better jobs done for the money we do spend. We do need the money for the backlog and we are working to make things more efficient all the time. Last year we got caught with plenty of roads nearly ready to seal and they weren’t’ sealed and a lot of those things have changed now. This year we had all our roads sealed before Christmas, our workforce returned to work early in January and our work practices are improving. Chris Schumacher added the recent works have a primer seal applied at the moment and still have a two pack coat to be applied. Material usage efficiencies, haulage of gravel, chipping trees to reuse on our parks are all efficiencies we are working towards to lessen the burden on the ratepayer. Meeting closed at 8.28pm.

COMMUNITY INFORMATION SESSION RESOURCING OUR FUTURE Thursday 29 January 2015, commencing at 7.00pm at the Burraga Sport and Recreation Club, Lloyd Street, Burraga Councillor Attendees: Mayor John McMahon, Clr Kathy Sajowitz, Clr John Morgan, Clr Jill Evans, Clr Ian Doney, Clr Kerry Gibbons and Clr Neil Francis Staff: Alan Cairney, Lynette Safranek, Chris Schumacher, Jaclyn Burns and Sharon Swannell Community Members – 18 (see attached sign in sheet) Meeting Opened: 7.05pm Alan Cairney – housekeeping and introduction of Councillors and Staff. The Mayor welcomed community members and thanked them for attending. Tonight we will put to you our plan for the future and the proposal to apply for a Special Rate Variation of 7.5%, including the rate pegging limit over the next five years. The Mayor outlined the findings of the T-Corp review and Council’s current financial position. This review identified an infrastructure backlog of $16.1 million. Council has to take account of this in our future planning and take steps to reduce our substantial backlog in infrastructure, which is mainly our road infrastructure. We are looking to the ratepayers to approve the 7.5% proposed rate rise. Lynette Safranek presented the Council’s current Long Term Financial Plan. Over many years costs to NSW councils have increased faster than their ability to raise revenue due to rate pegging. In 2013/14 rate pegging was 2.4% by far the cost of running Council outweighs the incoming coming into Council. The table on page 6 shows with a 7.5% rate increase after 2 years we can start to put our finances back into the black. For the general fund we are constantly behind. The graphs on pages 6 and 7 show that with the rate increase we can start to look at the road infrastructure, but also other facilities and services Council provides to the community. The rate rise will be used to reduce the infrastructure backlog and will also help maintain community facilities. Clr Evans outlined efficiencies and cost savings which have been identified by Council. Jaclyn Burns presented information identified in the Workforce Management Plan which is included as attachment 8 in the application. What’s council doing about tightening our belt in terms of its workforce. Council has develop its Workforce Management Plan which they have reviewed in 2012 and 2014 to look at potential skills required into the future and any gaps in the current workforce.

Chris Schumacher presented the major challenges identified in the Workforce Management Plan regarding length of service and experience. In 2012 46% of employees have less than 10 years length of service. In 2014 this has decreased to just 30%. This shows a trend in loosing skilled employees from the workforce in Oberon. We are looking at workplace succession planning to address this. For example we recently had an employee in the mechanical section who was looking at phased retirement and we are now transitioning the apprentice into that role. Clr Ian Doney outlined details of Council’s Roads Asset Management Plan. Attachment 5 of the Draft IPART application shows comparative information between Oberon, Blayney and other like Councils. Oberon Council relies heavily on grants, Council has recently appointed a part time Grants Officer who looks at any funding opportunities for all types of Council activities. Page 3 makes the point that this rate variation is to raise money to be committed to roads. We are continually striving for improvements in construction methods. We are looking to plan our road building better, getting road asset management plans, training, utilisation of machinery, planning works better. Get better at grading unsealed roads. Strive for a better plan of grading unsealed roads. We are looking to try to spend more money on the identified heavy transport routes. The Special Rate Variation at the end of 5 years yields around $200,000 more per year. This is not a lot of resources to improve roads. The rate increase is specifically to reduce the infrastructure backlog on the heavy transport routes. All other Council assets like Council Chambers, Parks, Library, Community facilities are all in pretty good shape, we won’t be spending a lot of money on these things. Unless we have a significant increase in the population there is no plan to spend any considerable funding on any of these items. Anthony Francis asked are the rates mainly going up because of road costs? Clr Doney replied yes that’s what we have been told we have to do. Anthony Francis – I believe there are only two companies in the Oberon Shire that pay a road levy. Wasn’t it Council’s decision to approve these roads for B-Doubles, which is now costing us more money as ratepayers. I am employed by Australian United Timber who is one of the companies that pay this levy. This is really double dipping for Australian United Timber. If other companies are getting away with it we are really being disadvantaged out here because of the road levy. Alan Cairney advised we will take a note of this matter but cannot really answer it tonight. There is another company that is charged a tonne haulage levy. We are unable to charge rates on state forests land. They are able to haul this as it is considered to be an agricultural purpose. Anthony Francis replied the mill in Oberon doesn’t pay it, we have asked before. This seems unfair for a company out here who employs 18 people and gives back to the community. A road levy seems to be double dipping and we would like to see it looked at. If we have to pay it others should too. Chris Schumacher added we have to look at condition of roads, capacity of roads, volume being transported etc. when making these assessments. There are other companies, which

are levied a per tonne usage for a quarry. This is a separate issue to the infrastructure backlog. We cannot sustain the maintenance and capital costs on our existing road network into the future, this is without extending the sealed network and maintaining the gravel road network. Future Development Applications which Council receive will be assessed on their merit. We appreciate where you are coming from, don’t feel that you are being unfairly targeted at the moment. Councillor Ian Doney invited Anthony Francis to contact Councillors for further follow up. Anthony Francis added before other roads are approved for heavy vehicles, shouldn’t you be looking after the ones you already have approved first. Chris Schumacher replied this will be a condition applied to future applications. Anthony Francis – I cannot see how it advantages the local’s or the community. The amount of movements on these roads, we want to see you put the money back into those roads, resheeting, fixing potholes and reconstruction when needed. Henry asked what’s happening with Oberon Council with amalgamations, will they be joining with other Councils? Alan Cairney outlined the NSW Government reform package. They have said to us we should consider a potential merge with Bathurst. The State Government has also said Council’s need to look at a path to make ourselves financially sustainable into the future. We need to have discussions with Bathurst and then come back and have conversations with the community. Details are still pending on the option to become a rural council. Any changes will take effect in 2016 so what we are looking at is the rate rise which will keep us sustainable into the future. We do not believe a merger would be in the best interests of Oberon or this community. Councillor Doney pointed out the comparative information contained in the IPART application. We do very well for a small Council and provide a huge amount for the community. Our fundamentals as a Council are extremely good. Alan Cairney added one of things the Mayor highlighted in his opening remarks is that we are looking at our long term plans. The T-Corp review looked at every Council in NSW and the outcome was that Local Government was not sustainable into the future without major change. One of the recommendations made by T-Corp was to go out and increase your borrowings to bring your infrastructure up to standard. Councillor Morgan presented information about the survey undertaken last year “Resourcing Our Future”. We mailed the survey to every ratepayer in the Shire and received 309 responses. We have the basic belief that the people affected should have the right to participate in the decision making process. We have considered all submissions and 10% was rejected by Council and it was agreed the only increase we would seek to put to the community was 7.5% per year over the next 5 years. With the increased income we hope to address the infrastructure backlog, particularly on roads. Lynette Safranek outlined the IPART application process. Charles Lamburn commented the Burraga district is one of the oldest aged communities in NSW and aged people are going to be particularly affected financially by Government decisions. Your decision at 7.5% per annum comes to just under 11% in the fifth year. I would recommend that its affects are not a percentage rate.

Alan Cairney requested Mr Lamburn put that into a submission. Katrina McDonald – a few years age Council used to have one person come around Burraga Village and mow the streets, they used to get them all done in one day. Now we have two ute loads come out and they can’t do all the streets. They come to my driveway and stop, what’s the difference? Alan Cairney agreed we agreed levels of service, there should be a map that shows where we will service and how often. We normally mow the community type areas around the parks, community hall etc. Anthony Francis added there is a lack of supervision. Alan Cairney replied we are improving work practices, we are making sure there are standards in place. We get a lot of feedback from the community. Think our guys do a great job. Rob Pearce asked can there be an all weather road put down to the Burraga Dam. There are a lot of visitors coming down there and it would be good if it could be an all purpose road so can be accessed during wet weather. Alan Cairney replied Chris Schumacher will note that and investigate. We will look at putting down a couple of loads of gravel and fixing the potholes. Stan Wilson - I think we all recognise the dilemma Council has. You are talking to the wrong people, you should be talking to the people who wrecked the roads. Council has placed a haulage rate on Australian United Timber. This community has been lumped into Oberon. Ob is an area that has had its rate base continually eroded by the State Government buying up land for pine plantations. When Evans Council first sealed the road to Burraga, it was destroyed in one year due to heavy vehicle movements. You are talking to the wrong people. My rates this year were $3912.66. If I was in Bathurst Council putting valuations aside I would be paying $3564.69. The question begs how and what are you going to do about recovering the damage from those that are destroying our roads. When the Forestry are harvesting they are carting 15 tonne per hectare per year from their land, if you look at a farm, I would be lucky to put 1 tonne per hectare per year onto the same roads. I do not destroy the roads. Rate increases over the years have been very substantial, where are we expected to find not only the increases we have already had but the ones you propose. You have had your rating base ripped out from under your feet over the past 40 yrs. You need to deal with your local member, lobby the State Government and seek legal advice to find our how you can extract the money from the body who is creating this expense. Have there been any legal test cases mounted to challenge these groups? The production off their land is far greater than what comes off the farm land. A large percentage of the land is now hobby farms. Larger farmers have seen a substantial increase in their land values since we moved from Evans to Oberon Council. Increases have been unfair and unrealistic. On the legal side as a ratepayer I don’t mind Council spending funds to investigate how it can recover those damages. We have mentioned haulage rates. It is just not fair to load us with more rates. What are you doing about your different rate bases? Where there is a house there is traffic and use of facilities. Should there be a greater variation on smaller holdings? You can have a farm such as mine, there are 4 vehicles that go on and off the road from the property and minimal truck movements. Regarding discussions on amalgamation, I personally despise large Councils and think smaller is better, but as the Shire has had its rating base ripped out of it you do have to look to Bathurst, Lithgow and Blayney. Unless you can receive compensation from those that do the real damage you are fighting an uphill battle. You cannot win it by gaining another $4 million in five years. That will go nowhere towards building roads.

Alan Cairney requested to please put in a submission outlining these comments. Mayor John McMahon added that the Council recognises the seriousness of the situation that you have outlined in regards to our loss of rating base. At the time when the State Government bought up rateable farm land, they also sewed down pine on a lot of Crown Land which wasn’t rateable. They were not required to lodge a Development Application for their activity and that meant there were no conditions able to be applied to the development. Other private developments which have required a Development Application have had a levy applied. As part of the findings from the Local Government Independent Review, Professor Sansom has recommended that rates on State Forests land be looked at. We have been working on this, we need support from the community in lobbying the State Government. Private Forest owners pay rates, the State Forests are in direct competition with them, they are not competing on a level playing field. Stan Wilson added that the State Forests have become corporatized businesses. They will sell them in the future. Mayor John McMahon replied, it will depend on how they do this, if they only sell the Forest plantation but retain the land, then it may still be unrateable. Stan Wilson replied this needs to be tested by all Councils affected. You are talking to the people who do not have the capacity to pay and they are not the people who are causing the problem. Anthony Francis added, you will break some farmers. Stan Wilson - If the State Government wants to go into business they should be paying the same costs as everyone else. Anthony Francis asked as the roads are Council why aren’t they making a decision on what is able to travel on the road? Chris Schumacher advised they are public roads and anything under B-Double size can travel on the roads without a permit. Mayor John McMahon – I am interested in the variation in rates between Bathurst and Oberon shire. I have spoken to two other landholders who own land in both Shires and they have done a comparison. Oberon rates were little more than 50% of Bathurst rates for household rates. There must be some disparity within the area, in your case it seems that you are considerably higher than Bathurst. Stan Wilson advised he phoned Bathurst Council this morning and asked for the rate in the dollar for rural lands. The valuer general is not differentiating land value for pasture improvement. Councillor Doney advised that there is a comparison of similar Councils such as Blayney contained in the IPART Application. When you compare residential, commercial and rural we are slightly more expensive on residential but Blayney is much more expensive on rural and commercial rates than Oberon. Land value is based on a comparison for land sales values. Stan Wilson responded the definition of land value should remove all dams, pasture improvement, fencing etc. as it should be the unimproved value of the land. My land has $1

million of improvements on it. In other businesses I use a valuer and will fight this in the future. Anthony Francis asked about roadwork and gutter cleaning recently completed on Arkstone Road. Council completed about 5km worth of cleaning the gutters and grading how long should that take with a grader, excavator and 2 rollers? Chris Schumacher replied approximately a week or two. Anthony Francis advised they started down one end of the job, moved to the other end, did some work in the middle. Every time they moved they walked the machinery all the way up one end, then all the way to the other end. You drive past and see rates money being wasted and there seemed to be a lot of wasted money put into that job. I would like to see more supervision and less time wasted. Alan Cairney advised that Chris Schumacher has been in the role of Works and Engineering Director since late October. If the guys need better supervision we will make sure that happens. Councillor Gibbons added that Chris Schumacher is looking at what machinery we send to jobs to ensure the jobs are done more efficiently. We had received a recommendation from the previous Engineer who was looking to reduce one excavator. Alan Cairney added we had a question at last nights meeting in Black Springs, were we going to start to use more contractors. We said no, we want to fully utilise our workforce. Chris Schumacher - we do need to use contractors from time to time. Supervision is key, I would be dismayed if the machine was walked up and down the job without being utilised. The excavators are normally worked quite a lot. Anthony Francis - when you do roadwork and have two people in the traffic escort vehicle. This really annoys me, it is a wast of money. Chris Schumacher replied I have been made aware of that and take your comments on board. Chris Francis asked about the width of the top corner on the Abercrombie Hill. When trucks are using this road there is not enough room, the trucks have to use the whole road. It would also have been better to leave the bottom corner the way it was. Chris Schumacher replied it is a priority to upgrade those curves. When we have any surplus capacity we do send the excavator there to gouge out more product. I understand work was done on the bottom corner as there were complaints from trucks with issues braking. Councillor Gibbons asked that Council chase up the possibility of black spot funding for this area. Chris Schumacher replied black spot funding is driven by accident statistics and can be difficult to access. There is accident history on the hill so we will follow this up. Chris Francis added there isn’t even an off-ramp going down there, nothing to stop a truck if he looses his brakes. Anthony Francis asked if the Mayfield Road job has been put off?

Alan Cairney replied we received a loan through the Local Infrastructure Renewal Scheme, Mayfield Road was put up as a priority project and we have received funding. The project has commenced, we want to build tourism in the area, it is a long term vision. Councillor Doney advised that the LIRS loan will be paid off over 10 years. Mayfield Garden has projected visitation is 20,000 per annum and they are already running ahead of that in this years plan. There is a lot of public benefit for Oberon. Anthony Francis replied eventually they will put their own shops in there an there will be no money going back into Oberon. Daryl Dobell - There is a business on Swallows Nest Road who wants his road done too. Councillor Gibbons added that there are currently 40 local people working at Mayfield Garden from the Oberon shire. Alan Cairney - under the LIRS funding we had no other applications that would have satisfied that scheme. It is a good project, it is keeping our construction crew fully occupied. Councillor Doney advised we have asked the Engineer for regular updates throughout the project. Anthony Francis asked if anything has been done to follow up the Burraga area falling under the 2795 postcode. Alan Cairney replied I recall we had talked about it but haven’t done anything effectively to follow that up at this stage. Lynette Safranek encouraged attendees to put in a submissions, and advised that submission may be anonymous. Meeting closed – 8.38pm.

COMMUNITY INFORMATION SESSION RESOURCING OUR FUTURE Tuesday 2 February 2015, commencing at 7.00pm at the Robert Hooper Community Centre, Fleming Street, Oberon Councillor Attendees: Deputy Mayor Kerry Gibbons, Clr Sam Lord, Clr John Morgan, Clr Jill Evans, Clr Ian Doney, Clr Clive McCarthy and Clr Kathy Sajowitz (from 7.18pm) Staff: Alan Cairney, Lynette Safranek, Chris Schumacher, Jaclyn Burns, Sharon Swannell and Sarah-Jane Holland Community Members – 14 (see attached sign in sheet) Meeting Opened: 7.12pm Alan Cairney – housekeeping and introduction of Councillors and Staff. Mayor John McMahon welcomed attendees and advised that the purpose of the meeting is to present the Council’s application for a Special Rate Rise. We are seeking community feedback regarding the proposal. Deputy Mayor Kerry Gibbons welcomed member of the community and advised the purpose of the meeting is to outline the Council’s proposal to increase the rates. Following the adoption of the Community Strategic Plan in 2015, Council has reviewed its Long Term Financial Plan and its Financial Stability. Clr Gibbons outlined the findings of the T-Corp financial assessment of Oberon Council which identified that Council has an infrastructure backlog of $16.5million, predominantly made up of roads. We have to raise additional funds to reduce the infrastructure backlog. Lynette Safranek outlined Council’s Long Term Financial Plan. In the 2014 Community Strategic Plan Council forecast a general rate increase of 10 – 15%. Rate pegging was 3.4% for 2013-14. The Council’s costs are well above that percentage increase. Following a survey of all ratepayers late last year, Council considered feedback and decided to apply for a 7.5% increase per year for 5 years including the rate pegging limit. The additional rates will raise a total of $1.46 million over the 5 yrs. Clr Evans outlined the potential efficiencies and cost savings which Council have identified. Sig Sovik asked are there any numbers associated with these cost savings? How much do they represent over the five years? Alan Cairney replied not at this time. The use of new technologies such as 2D and 3D equipment on graders as outlined by Councillor Gibbons are good examples of savings that we will be able to achieve.

Councillor Kerry Gibbons added we have to make efficiency gains. We have seen poor practices happening over the years, we have taken that on board. Council has a new Engineer who is aware of some of the failings. This will be shown with the work we are doing on Mayfield Road now. Councillors have had a lot of input into the standard of work that is being done there. We need to be more productive to compete with outside bodies, we want to improve our technologies, retain good staff and ensure training is up to date. Sig Sovik asked are you able to measure the improvements you are seeking? For example when compared to past practices we have saved how much? Alan Cairney commented participation with Centroc is quantifiable and there is a cost saving component as part of those initiatives. We have received grant funding which we would not have otherwise received. Clr Doney responded it is difficult to answer as we are so intimately involved with community as well. Council has discussed strategies for the Mayfield Road project and Councillors have formally asked for a monthly expenditure report on this upgrade. We expect to have some funds left over at the end of the project. Staffing is something we discuss and it is a sensitive area as one of Council’s roles is to train and employ locals. We talk about that at virtually every meeting. Overtime is running at 6% which needs to be reduced. Wages increase is around 4% which is on par with the community. Chris Schumacher added we will be KPI’s such as instead of grading full lengths of road we will patch grade certain sections and gravel certain sections, improve drainage to extend the life of our rural roads. On the Mayfield Road job we are winning gravel from roadside deposits which gives us cost savings. These efficiencies will equate to $ saved. Chris Freeman asked about the use of a Debt Recovery agency – is that the first time you have hired one of these companies and why? Are you having trouble collecting rates? Lynette Safranek advised when I commenced at Council 15 months ago Debt Recovery was being done in house and Oberon’s debt ration was slightly above average in Councils. It is quite difficult for our Revenue Officer to do this job in house. We are trialling this for 12 months. So far it has been a zero cost exercise and we have had a good reaction. Jaclyn Burns outlined the information contained in the Workforce Management Plan, which identifies the human resources and skills required into the future. It also outlines the age of employees, skill levels and succession planning. Chris Schumacher gave an overview of the potential issues identified with length of service and experience of our employees. Clr Doney outlined details of the Roads Asset Management Plan and summarised what we are hoping to do with the funds received from the special rate increase. Every meeting we discuss will Forestry and National Parks pay a dividend to assist with maintenance of the roads? They are a State entity and are not required to pay rates. This is something the Council will continue to pursue. Current community assets have been identified as being adequate and will only be reviewed it there is a substantial increase in the population. Clr Maloney commented you have missed some heavy transport routes – Shooters Hill Road, Jaunter Road, Mount Werong Road and Jerrong Road. These are all heavy haulage routes and there are more than the Roads you have listed. Councillor Kerry Gibbons replied the roads you have mentioned are in a fairly good state.

Clr Maloney replied Jaunter Road is in a poor state. There are large rocks on the road and no mobile service out there. The Council is using the same blue gravel as Forestry and when you are pushed over onto the shoulder of the road it is too narrow. Keep getting flat tyres. Councillor Gibbons replied the State Government has poured a lot of money into Shooters Road up to the Banshee Road. Were those roads reported to Council? Clr Maloney replied I don’t know, that just shows the Council staff are not doing their job. Alan Cairney advised we have taken a note of the roads you have mentioned. We cannot fund everything so we have highlighted the most critical roads. Additional funds will also be utilised to supplement grading. Chris Schumacher advised there is a big cost difference between crushed gravel vs won gravel. We use a Sheepsfoot Roller to break down the gravel which is then reworked with the grader. We are trying to get efficiencies by using local product. If this is offset by getting in rock crushers costs will be five times higher. L Maloney replied the Forestry Corporation should be paying something, why are you putting the burden on the ratepayers. The value of our land has gone up. You Councillors should be pushing for that revenue to come back into this area to keep this land upgraded for the locals. Chris Schumacher advised Council previously had a Memorandum of Understanding with Forestry Corporation for work on identified heavy haulage routes, however this has now expired. We are continuing to push that it be reinstated. We are a heavily forested area. Surrounding Councils have similar issues and the State Government will not come to the party at this time. Phillip Haynes asked about Sheep Station Forest Road. The road being graded which is great. The Forestry Commission illegally placed grey shale on the road for the purpose of getting their trucks in and out several years ago. I had a commitment from Forestry that they would remove this. Your guys are out there tomorrow is it possible to flick that off to the side. It is a public road, dedicated some years ago. The Forestry thought it was their road at the time. Chris Schumacher will follow this up. Alan Cairney replied this will be reviewed in the Community Strategic Plan and will mean a reduction in our level of service. Clr John Morgan outlined the community consultation process undertaken to date. Lynette Safranek outlined the IPART application process and timetable. Phillip Haynes asked if this application is rejected and you don’t get your increase what is your plan then – is there a plan? Alan Cairney replied we will review the Community Strategic Plan and come back to the community in May and June. The impact will be a reduction in services. Grading will be carried out less frequently, maintenance won’t be carried out as frequently. We would need to do the data analysis to determine the frequency.

Phillip Haynes has looked at the comparison with Blayney Council, their staff levels are 70 and ours are at about 80. If we reduced staff levels both indoor and outdoor by 2 from each area we would recover the same income? Has that been looked at? Alan Cairney replied the Price Waterhouse Survey done late last year looked at the comparison of the number of staff. We have looked at this. Lynette Safranek advised Council has also looked at its overtime blowout and how it can be reduced. Phillip Haynes commented wouldn’t it be great if we could be the most efficient Council in NSW. Set some goals and reduce staff levels. If we are absorbed by Bathurst everyone here looses their job. Alan Cairney advised that the T-Corp review identified there were only two Council’s in NSW that were financially sustainable into the future, they were the City of Sydney and Tumbarumba. Phillip Haynes added maybe we could look at staffing levels. The gain we are getting is not that much in terms of the whole budget. Reduce staff levels by 3 – 4 people and we would have that money straight off. Alan Cairney replied we are reviewing our Workforce Management Plan and re-assessing our needs each time someone leaves the organisation. Chris Schumacher added that a reduction in staff levels may also mean we loose an item of plant, which may mean that levels of service change and that is the bottom line impact. Phillip Haynes asked is all the equipment being utilised all the time or does machinery sit idle for part of the year? Would it be more efficient to hire private contractors? Chris Schumacher advised we have done the figures, employees are much stronger. Plant is working 99% of the year. Our seasonal weather conditions mean we do a lot more capital work at this time of year and maintenance grading during wetter weather. During dry times we cannot grade roads. Private works are another revenue stream. We are doing a lot of private works and we are always looking for these opportunities. Councillor Kerry Gibbons advised we are making sure Council is in a position to compete with contractors. We have strategies in place to try to get the best out of the machinery. Alan Cairney provided an example where last year we put out a tender for new dozer. We went out with budget of $300,000.The tenders came in $400,000. We went to a private auction and bought a machine for around $300,000. Staff went to the effort of looking around and bought the machine at a private auction as we didn’t have the budget to buy the new machine. Phillip Haynes replied we don’t see a lot of feedback of what you are doing, where you are saving money and how you are doing it. It would make ratepayers more comforted to know that you are actually making an effort. Alan Cairney replied Council has been holding more workshops, more community briefings, more discussion with the community. We are focusing on saving money and doing things better.

Lynne Causer asked do you ever join forces with other Councils in the region to bulk buy and get a better deal? Alan Cairney replied we haven’t recently as the timing hasn’t been there. Through Centroc have done some things like that in the past. Chris Schumacher advised where we can lend a hand with our neighbouring Council’s such as Lithgow we have, we will lend materials if possible. Bulk purchasing through Centroc for things like Emulsion gives us cost savings. When the sun shines everyone needs their equipment so it’s either a feast or a famine. We will be looking at these things more closely through the new pilot Joint Organisation. Councillor Ian Doney added we did have a shared Grants Officer with Lithgow Council and this was totally ineffective. We now have our own part time Grants Officer and this has been a great success. We have now combined our resources with Lithgow for our Community Transport, we are looking to improve all the time. Councillor McCarthy provided an example where when we ordered our last Water Cart there was someone else also looking at one and the Plant Foreman was able to facilitate a better deal through a bulk purchase. Phillip Haynes asked about the reduction in Government Grants? Which ones are reduced? Lynette Safranek advised that the Federal Assistance Grants (FAGS) has had its indexing put on hold over the next three years. This is a loss of approximately $800,000 of the $3.2 million budget which is for roads. Grants are not a given thing that we get them on a regular basis, we have to apply every year and they are becoming more competitive. Councillor Ian Doney added that the timing of the FAG’s grant has also changed. We used to get the money up front and now they are giving it less frequently after the event. At the end they are being far more precise with the costings. . Phillip Haynes asked how much less per financial year is the Council receiving? Lynette Safranek replied probably about $80,000. Alan Cairney added the State Government has also reduced things like funding for public libraries. Phillip Haynes asked how many fleet cars do Council employees have? It seems to me vehicles are an area were cost savings can be made. Alan Cairney advised that we have 8 staff with vehicles. We have recently been speaking with the Toyota Fleet Manager with Bathurst Council and this will give some savings. Vehicles are normally changed over between 80,000 and 100,000 kilometres. Alan Cairney added we have touched on the merger situation with Bathurst Council. We have to review our operations to ensure we are Fit for the Future. The State Government has released the Rural Council Model today. Under the Fit for the Future program there are cost savings in reductions in red tape, innovation funding and extra resource sharing for administration. Phillip Haynes asked are any of the Councillors in favour of amalgamation?

Alan Cairney replied we owe it to the community to have the discussion in Council and come back to the community after that. Phillip Haynes commented this meeting is very poorly attended. Why aren’t the invitations put in with the rate notices, the community newsletter or sent out by letter. Alan Cairney advised when we went out with our Community Strategic Plan last year we advised the community we would be seeking to raise the rate. We have put out a survey, the information is in the community. Councillor Ian Doney added that the Oberon Council website sends out an automatic newsletter, we place information on facebook, notice boards as well as the local newspaper. Alan Cairney added we recognise we could do better. Sig Sovik – the increase above the fixed rate pegging limit in dollar terms is relatively small. If you look at your full year’s road program you will spend $6 million this year to try to catch up on the backlog. Half is from rates, half is from funds saved. The increase is a very small amount and if you look at projection in terms of spending enough money to satisfy the Government this additional money must be a very small percentage. You are well above with your liquidity value too. Why is it so important that you get the 7.5%? Why couldn’t you ask for 5%? Originally the council voted for 5%, why do you have to push the 7.5%? The difference is approximately $100,000 per year and the Council should take it as a challenge to find that amount each year from efficiency gains and cost savings. I recognise there is a backlog on roads. Why push another $100,000 per annum which is significant to the ratepayers but less significant to your plans. You are still within the ratio that the State Government want you to be. Alan Cairney replied we will take this on board. Infrastructure report identified that Councils should consider applying for the Local Infrastructure Renewal Scheme and should also consider applying for a Special Rate Variation which we have done. These were tough decisions for the Council to make. LIRS was a great benefit, but Council has struggled to make this decision. Lynette Safranek added one of the things Councillors needed to consider was the Fit for the Future requirements and the long term financial sustainability of Council. With a 7.5% increase it only takes us two years to become financially sustainable again, which is one of the criteria that the State Government is looking at. Sig Sovik asked why don’t you try for higher percentage in first couple of years and then reduce it down. Councillor Ian Doney replied we are going to draw on our reserves over the next 3 years to get ourselves back into the black. We are going to spend the reserves, increase revenue and behind the scenes we will need to save some money as well. Our finances are quite good across the board, but the State Government is saying we need to have better coverage of our long term infrastructure backlog. This is protective of Oberon as our finances are sound and we would never be as well served by another Council as we are by a local Council. We need to get in the black as soon as possible and start saving for the long run. Sig Sovik commented your Community Strategic Plan shows you had a $700,000 net cash position. Lynette Safranek replied a large percentage of that is restricted for things such as staff entitlements, other applications.

Sig Sovik – you are spending over $3 million in 2015 on roads. I question the need to push the 7.5% as you will still be financially sound if you reduce to 5%. The NSW Government doesn’t ask you to have a liquidity ratio of 3 or 4. Only asks for 1.5. The numbers show that the Council is in a reasonable financial position. I think you should have over and above the plan, but less than the 7.5% that has been asked because I think the Council can afford it. Greg Durkin commented I am totally against any increase in rate rises. I suggest we cut back the roads program to the point that it becomes uncomfortable and the State Government gives us some money back. You sit around and raise rates and it is usually the businesses who pay more, farmers, quarry, the timber mill. A single family living on a farm are just receiving the benefits in the community of a single family and yet they have massive increases. Any Councillor who votes for a rise won’t get my vote next time. A rate increase is a tax on business and I do not support it. Councillor Kerry Gibbons replied if something doesn’t happen there will be less money for the work to be done. I am a firm believer that we need greater efficiencies. Greg Durkin replied the State Government fuel levy should be coming back to Councils for the roads. I think you should cut your cloth to suit your budget. It hurts people, everyone will notice it. Alan Cairney reminded people of the submission forms and encouraged community members to put in a submission. Bob Parrington asked is there a compulsory retirement age for Council workers? Council employs a lot of older people, when they retire you have to train more staff and that will be a huge cost. Alan Cairney replied this is one of the things we are addressing as part of the Workforce Management Plan. Our Senior Workshop Mechanic is approaching retirement so we have now transitioned the Apprentice into a full time role and this is giving us benefits. Sig Sovik asked do you try to retain older people with those skills? It would have to be a benefit to defer having to put on new trainees. Does the Council have a policy of trying to keep older employees on for longer? Chris Schumacher replied multi-skilling of staff is a focus, if one person is absent from work we can still complete jobs. We do have a Workforce Management Plan and we are looking at succession planning in terms of incentives and trying to introduce traineeships and internships to pass those skills on. Sig Sovik – NSW Forestry Corporation causes a lot of the wear and tear on the roads in this area. Is it possible to reduce the maintenance on one or two of the roads to the point that it becomes so bad they will come to the party? The State Government should contribute, otherwise the Council cannot afford to continue to maintain the roads Alan Cairney replied the Council is not going out with that strategy. L Maloney – with small roads, like Jaunter Road, Forestry Corporation were using Drogheda Road, why does Council allow them to use those roads and why can’t you make the Forestry repair them once they have used them.

Chris Schumacher replied if you pay your rego you can use the roads. Regional areas probably don’t get their fair share. Forestry will notify us when they are working in certain areas. Lynne Causer asked has anyone noticed there are logging trucks coming from Bathurst with 1 ½ trailers, is that a good thing? Councillor Kerry Gibbons replied it is legal, every set of axles have a certain weight capacity. Chris Schumacher added it is an application through National Heavy Vehicle Scheme and they have obtained approval. The benefit is better weight distribution. Sally Parrington commented, looking at Lynette Safranek presentation of the Long Term Financial Plan the sewer fund is in the red the whole way through, will this come up later and will there be another percentage increase to cover this? Chris Schumacher replied the Sewer Plant has a lot of ageing infrastructure and this is being reviewed. We have one of the lowest access charges in terms of sewer and water. We are looking at this as part of the Centroc Water Utilities Alliance Group. The group will undertake a review of individual assets, and have better buying power to upgrade the plant. We are also looking at compliance issues and additional costs for treating effluent, and strategies to deal with this. Bob Parrington asked has Council looked at when we might expect to see more rate increases as part of that? Alan Cairney replied this will be discussed in May and June when we deliver the next Community Strategic Plan. Phillip Haynes asked with land that was once farm land and was bought by Forestry – does that attract rates? Alan Cairney replied no – private pine plantations do attract rates but State Government land is non-rateable. Only 5% of the Forests in Oberon are private pine. Sig Sovik – it appears that in the last 5 years of the 10 year Long Term Financial Plan the land revaluations were not factored into the rate increases. It is going to be caught after the 7.5%? Lynette Safranek replied that they are currently looking at the rating structure. Veronica Cvitanovic asked has the Copper Mine at Burraga been approved and is it going ahead? Alan Cairney replied we haven’t received a Development Application for that yet. The meeting closed at 8.28pm.

COMMUNITY INFORMATION SESSION RESOURCING OUR FUTURE Wednesday 4 February 2015, commencing at 7.00pm at the O’Connell Public School, Black Mills Lane, O’Connell Councillor Attendees: Mayor John McMahon, Clr Kathy Sajowitz, Clr John Morgan, Clr Jill Evans, Clr Ian Doney, Clr Sam Lord, Clr Kerry Gibbons and Clr Neil Francis Staff: Alan Cairney, Lynette Safranek, Chris Schumacher, Gary Wallace and Sharon Swannell Community Members – 6 (see attached sign in sheet) Apologies were submitted from Brenda Doney and Susan Louden. See separate submissions. Meeting Opened: 7.12pm Alan Cairney – housekeeping and introduction of Councillors and Staff. Mayor John McMahon welcomed attendees and advised that the purpose of the meeting is to present the Council’s application for a Special Rate Rise. We are seeking community feedback regarding the proposal. The Mayor outlined the findings of the T-Corp financial assessment of Oberon Council which identified that Council has an infrastructure backlog of $16.5million, predominantly made up of roads. We have to raise additional funds to reduce the infrastructure backlog. Council has decided to approach our ratepayers with a revised proposed increase of 7.5% over 5 years (including the rate pegging limit) and that will alleviate some of the infrastructure backlog and allow us to do additional maintenance on our rural roads. This money will not be spent in the town or villages but will be spent on local rural roads. Any expenditure in the Oberon township will be funded from the fees and charges collected from town ratepayers. Kerb and guttering, parks and gardens, water sewer etc. is covered by our present rating and fee structure. We are seeking ratepayer input into this proposal. It is important that we have the ratepayers support to go to IPART to seek this variation. Lynette Safranek presented information about the Council’s Long Term Financial Plan. The proposed increase will bring in to council an additional $1.46million over the full five years.

Councillor Jill Evans presented information about potential efficiencies and cost savings identified by Council. Alan Cairney advised that Council is currently part of the Centroc group which is voluntary. We have agreed to participate in a pilot Joint Organisation, and as part of this will participate in programs, share in joint cost savings initiatives. Chris Schumacher outlined the Workforce Management Plan and major challenges which have been identified. Councillor Ian Doney outlined the details of the Road Asset Management Plan and the infrastructure backlog which has been identified. The IPART application includes the T-Corp report on Oberon Council, I encourage people to review this document. It also includes a brief comparison in Section 5 between Oberon and similar Council’s such as Blayney. In most financial measures the Council is in fairly good shape and has been for a long time. Rate pegging is getting outstripped by cost increases. Constant and regular cost shifting from State Government onto Local Government and much tighter financial control at State Government level. Our major asset is our roads, which means this is also our major expenditure. The increased revenue raised by the Special Rate Variation will be spent on supplementary grading and maintenance on our unsealed rural roads. This council has had a policy of not extending its sealed network, this decision has recently been reversed and council will again commence sealing short sections of road as they are identified in high need. The second area the money will be spent on is upgrading and improvements to heavily utilised rural freight transport routes. Non road infrastructure will continue to receive planned maintenance and no major asset improvements will be undertaken in the township unless there is a significant increase in our population. Employment in the timber industry is a great benefit to our community, however they have a significant impact on our road network and we need to spend more money on these roads. Part of the money will also be spent on repayments for the Local Infrastructure Renewal Scheme funding. Chris Schumacher addressed the major transport routes which are the roads that the additional income from the Special Rate Variation will be spent on. In the fight for grant funding the additional income also gives us greater opportunity to seek grants on a dollar for dollar basis. Clr Ian Doney – I have tried to convince council that O’Connell is different in the Council area, a significant portion of our community work and shop in Bathurst. I try to indicate to people that the public assets in Oberon are very good and well worth using. The library, The Common, Visitor Information Centre and CTC are all terrific assets. I would like to see more folk spend time in Oberon. Those public assets are just up the road. Councillor John Morgan outlined the Resourcing Our Future survey. Council believes the people who are affected have a right to be involved in the decision making process. Council formulated a flyer which was mailed to every ratepayer in the Local Government Area (2500). The survey presented two options, either option 1 a 10% increase, or option 2 a 5% increase. We also outlined what could be done with that money. Public meetings were held and Councillors all attended. Council met and reviewed all submissions and debated this matter very strenuously. Out of this they decided to look at an application for 7.5%. From the 2500 surveys, we received 309 surveys returned, 201 chose option 1, 88 chose option 2 and 20 other people made other comments.

Lynette Safranek outlined the application process. Julie Stott asked could you delay it a year to give us more time to talk about it? Alan Cairney replied two years ago we went to the community and first identified the need for a rate rise, we received very little feedback about the process. We have stalled it for two years already. Julie Stott asked how did you let the O’Connell people know this meeting was on tonight. Lynette Safranek advised it was included in the Oberon Review, Council Website, the O’Connell School Notices, the Community Noticeboard outside the O’Connell Café, the Noticeboard outside the O’Connell Pub and the website email distribution from Council. Julie Stott replied my address drops off the email list all the time. I asked all my neighbours to come and they had never heard of the meeting. We used to do letter drops here. The Survey was posted on 14 November and they weren’t received until three days before the closing date for submissions. Trevor Seaman commented, I voted against it because there were no details. What you have put here tonight is quite reasonable. Not many people are here tonight so I don’t think they have a problem with it. I don’t have any electronic equipment and I found out about the meeting. Trish Forsyth advised that at a morning assembly last week we let the parents know that this was on and asked the students for their feedback. Mrs Hill’s class (students 6 – 9 years of age) wrote their feedback down. Trish Forsyth read the letter to the meeting. The letter will be included as part of the submission. Alan Cairney advised Council is working with the RMS at the moment about the Cycle Way and the Crossing of the Fish River Bridge. Trish Forsyth commented once we have a designated site for a recreation ground there are a lot of opportunities through sport and recreation funding. Peter Butler - my feedback is that it is great, increasing the rates the sooner it is done and the sooner Council is in a better financial position, the sooner we will receive some much need facilities here. We are in good hands. Clr Ian Doney advised we have been chasing a new Recreation Ground for O’Connell for 30 years. The original Recreation Ground started on the corner of Mutton Falls Road. Many years ago Council did not see it as a priority and it became a rural subdivision. We have looked at getting land from various large landholders in the district. We are currently chasing the Anglican Church for the opportunity to either purchase or lease land at the front of the church grounds. Council does have some funds identified for this purpose. We should hear by the end of February if this is possible. Trish Forsyth commented I think there is a need for an increase in the rates to do the roads. In the back of my mind if I say yes to an increase in rates at some stage I want to see some of that money come back to O’Connell for additional facilities. I would like to see a commitment for putting in the bike paths and facilities we need in O’Connell.

Mayor John McMahon replied we are certainly looking at options. We are in discussion with RMS and looking at the option of putting a Bike Track under the Fish River Bridge. The Cycle Track may extend back as far as the Beaconsfield Road intersection. We have been talking about land for a recreation ground for years, we have been guided by Councillor Doney with this matter. Our plan is to provide a recreation area here for the children and residents of O’Connell. The land identified is extremely suitable, ideally placed and we are aiming to bring this to fruition. Mayor John McMahon provided an update regarding the progress of the construction of Columbia Homes Aged Care Facility in Oberon. Columbia Homes are extremely pleased with the progress of the facility. Before the building is completed and before any advertisement and promotion has been done, almost half the beds are already spoken for. Soft opening is planned for the community in May and the Official Opening will be held in June. Councillor Kerry Gibbons asked if there a Progress Association or Community Association in O’Connell or any move to form one? Councillor Ian Doney replied, there is not a Progress Association; there was a Village Association and the Guardians of the O’Connell Avenue. Mayor John McMahon thanked people for attending and invited attendees to put in a submission if they have any feedback. Meeting closed – 8.29pm.


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05.02 HARDSHIP POLICY

File No: Governance/Policies Author: Lynette Safranek, Finance & Community Services Director Summary As part of the Application to the Independent Pricing & Regulatory Tribunal (IPART) for a Special Rate Variation a draft Hardship Policy had been prepared to provide assistance to ratepayers. Recommendation: That Council adopt the Hardship Policy. Comment FOLLOWING is a copy of the draft Hardship Policy Council recognises that ratepayers may experience hardship in some circumstances in paying rates, annual charges and fees. T he Local Government Act 1993 provides for the following assistance to ratepayers and other customers: Periodical payment arrangements for overdue rates and charges (Section 564) Writing off or reducing interest accrued on rates or charges (Sections. 564 & 567) Waiving, reducing or deferring the payment of the increase in the amount of rate payable

because of hardship resulting from general revaluation of land (Section 601) Waiving, or reducing rates, charges and interest of eligible pensioners (Sections. 575, 582) Waiving or reducing Council fees when the inability to pay is due to hardship (Section 610E). Each of these areas is addressed in the draft Hardship Policy. 05.03 PROPERTY AND LAND DEVELOPMENT

File No: Council Properties/Land Development and Sales Author: Alan Cairney, General Manager This item is classified CONFIDENTIAL under Section 10A(2)(a) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to the following:

(c) information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business

Summary Details about land development opportunities will be presented to Councillors at the meeting. Recommendation That: report item 05.03 be considered in a Closed Session of Council.

6. CLOSURE OF MEETING The Meeting closed at ….

HARDSHIP POLICY

Oberon Council - Policies and Procedures Manual

HARDSHIP POLICY INTENT OF POLICY This Policy provides a framework for responding to applications from ratepayers experiencing genuine hardship with the payment of their rates, annual charges and fees. POLICY STATEMENT Council recognises that ratepayers may experience hardship in some circumstances in paying rates, annual charges, and fees. The Local Government Act 1993 (the Act) provides for the following assistance to ratepayers and customers: • Periodical payment arrangements for overdue rates and charges [Section 564]; • Writing off or reducing interest accrued on rates or charges [Sections 564 & 567]; • Waiving, reducing or deferring the payment of the increase in the amount of rate payable

because of hardship resulting from general revaluation of land (Section 601]; • Waiving, or reducing rates, charges and interest of eligible pensioners. [Sections. 575, 582] • Waiving or reducing Council fees when the inability to pay is due to hardship [Section 610E] Each application for assistance will be considered on its merits. A ratepayer may be eligible for consideration for assistance in the payment of overdue rates, annual charges, interest, and fees, where: • the person is unable to pay due rates, charges fees or accrued interest when due and

payable for reasons beyond the persons control; or • payment when due would cause the person hardship. In determining eligibility a request made in writing to the General Manager, should provide reasonable proof of financial hardship. Details of assets, income and living expenses, and such other information required to make an assessment may also be requested. The ratepayer may also be requested to attend an interview to assist in understanding the issues causing hardship. The criteria for assessment will be, but is not limited to, the following: • the amount of any rate increase when compared to the average rate increase for the rate

category, • income from all sources, • living expenses, • reason for financial hardship, and • length of occupancy.

HARDSHIP POLICY


ASSISTANCE TO ELIGIBLE PENSIONERS 1. Council will provide a rebate of rates to eligible pensioners who are granted a mandatory

pensioner concession under Section 575 of the Act. 2. Council will provide assistance to eligible pensioners who are experiencing financial

difficulties, by offering alternative payment arrangements and reasonable extension to payment timetables. All payment arrangements must pay the balance owing within a reasonable timeframe, not exceeding 2 years from the date of the arrangement being made, and should include future rates and charges which will be levied during the arrangement period.

3. Under Section 577 of the Act in order to avoid hardship, Council may extend the pensioner concession to ratepayers who jointly occupy a dwelling and are jointly liable for rates and charges with an eligible pensioner, if it considers proper to do so.

HARDSHIP ASSISTANCE BY PERIODICAL PAYMENT ARRANGEMENTS 1. Council may enter into a formal agreement with a ratepayer eligible for alternative periodical

payment arrangements for due and payable rates, and charges. Council or the ratepayer may initiate a proposal for a periodical payment agreement. In accordance with Section 568 of the Act, payments will be applied towards the payment of rates and charges in the order in which they became due. Council will provide information on the amounts due and payable on relevant notices.

2. Council may also write off or reduce the accrued interest and costs on rates by debt recovery, if the person complies with the periodical agreement (Section 542(2)). If the ratepayer fails to make the periodical payment in accordance with the agreement, the payment plan may be cancelled. Full payment of the amount outstanding will be due immediately or the matter transferred to external debt recovery agency.

HARDSHIP ASSISTANCE BY WRITING OFF ACCRUED INTEREST AND COSTS Council applies interest rates to the maximum allowable under Section 566 of the Act. However Council may write off accrued interest and costs on rates or charges payable by a person under Section 567 of the Act and the Local Government (General) Regulation 2005 where: • the person was unable to pay the rates or charges when they became due for reasons

beyond the person's control, or • the person is unable to pay accrued interest for reasons beyond the person's control, or • payment of the accrued interest would cause the person hardship HARDSHIP ASSISTANCE DUE TO CERTAIN VALUATION CHANGES Under Section 601 of the Act any ratepayer who incurs a rate increase following a new valuation of land values may apply to Council for rate relief, if the new rate payable causes the ratepayer to suffer substantial hardship. Council will encourage aggrieved ratepayers to make an appropriate application under the appeal provisions of the NSW Valuation of Land Act 1916. Council may provide assistance, by offering alternative payment arrangements and reasonable extension to payment timetables. All payment arrangements must pay the balance owing within a reasonable time frame, not exceeding two years from the date of the arrangement being made, and should include future rates and charges which will be levied during the arrangement period.

HARDSHIP POLICY


HARDSHIP ASSISTANCE DUE TO IMPACT OF SPECIAL RATE VARIATIONS Any ratepayer who incurs a rate increase resulting from the implementation of a special rates variation can apply for assistance if the increase in the amount of rates payable would cause them substantial hardship. WRITING OFF OF RATES, CHARGES AND INTEREST In the cases where an assessment determines to write off rates, charges or interest, the General Manager shall write off debts to the maximum amount allowable under Council Delegation.Any amount above that may only be approved by a Council resolution. PRIVACY AND CONFIDENTIALITY Council staff ill conduct themselves with courtesy and respect when dealing with ratepayers and shall maintain the privacy and confidentiality of all ratepayers’ personal circumstances. Approving Authority Oberon Council

Contact Finance & Community Services Director

Approval 10 February 2015 Review date 10 February 2016

Issue date to staff 11 February 2015

150210 AGENDA EXTRAORDINARY 10 February 2015€¦ · 2. Upgrade and improve heavily utilised rural...

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