Future Federation Flyer 2024-2025

View draft plans here!

At its April 2024 Council Meeting, Federation Council endorsed its draft plans, including the 2024/25 Budget, for public exhibition.

Operating Program: $54.8M

Capital Works Program -

$19.23M

Roads, Bridges & Footpaths renewal: $4.5M

Stormwater Drainage upgrades: $0.25M

www.federationcouncil.nsw.gov.au

operations and help the organisation meet community demands for services and infrastructure by maximising available resources.

Water & Sewer

renewal & upgrade: $11.48M

Under the proposed Annual Budget for 2024-2025, Council will deliver a $54.8M Operating Program and a $19.23M Capital Works Program.

In the long term, it is anticipated that the actions contained within the plans will improve outcomes for community members across the Council area.

The suite of strategic documents intended to set the direction and priorities of Council include the following:

• Draft Delivery Program and Operational Plan 2022 - 2026 ‘This is Future Federation’;

• Draft Long Term Financial Plan 2024 - 2034

• Draft Revenue Policy 2024 - 2025

These plans have now been placed on public exhibition until 4 June 2024 to enable any feedback to be received and considered prior to final endorsement by Council.

Why we’re engaging – Future Federation 2024-2025

In line with our Community Engagement Strategy and the Local Government Act 1993, we are engaging with our community this May to seek feedback on our Draft Delivery Program / Operational Plan and Budget 2024-2025.

Our combined Delivery Program and Annual Operational Plan is an important document that sets out Council’s action plan for achieving the community priorities outlined in the Community Strategic Plan (CSP). It identifies the projects, programs and activities that council will undertake during the four year term of Council. This is supported by the Annual Budget which outlines how we will fund the delivery of services and projects to our community. It funds services like managing waste, maintaining our infrastructure, community facilities and parks, operating our libraries, events and services to people at all stages of life. This is ‘Future Federation 2024-2025’.

Public Meetings

• Tuesday 14 May: Club Corowa, Betterment Parade, 6pm - 8pm.

• Wednesday 15 May: Urana Bowling Club, William Street, 6pm - 8pm.

• Monday 20 May: ClubMulwala, Melbourne Street, 6pm - 8pm.

• Wednesday 22 May: Howlong Golf Resort, Golf Club Drive, 6pm - 8pm.

Drop In Sessions

• Monday 27 May: Corowa Civic Centre, Edward Street 10am - 1pm.

• Tuesday 28 May: Howlong Council Office & Library, Hawkins Street, 10am - 1pm.

• Wednesday 29 May: Mulwala Council Office & Library, Melbourne Street, 10am - 1pm.

• Thursday 30 May: Urana Council Chamber, William Street, 10am - 1pm.

Ways to provide Feedback

• Review the draft plans and complete the submission form on Council’s website www.federationcouncil.nsw.gov.au

• Email: council@federationcouncil.nsw.gov.au

• Complete a feedback form in any one of our Council offices in Corowa, Howlong, Mulwala and Urana

• Have a chat face-to-face at our upcoming engagement sessions locations throughout Corowa, Howlong, Mulwala and Urana.

• Send in feedback to PO Box 77, Corowa, NSW, 2646.

• Phone: (02) 6033 8999.

Engagement Timeline

April Council Meeting –

The Future Federation 2024-2025 Draft Delivery Program / Operational Plan and Budget presented to Council for endorsement for public exhibition on Tuesday, April 30, 2024.

Future Federation - Draft Delivery Program / Operational Plan and Budget 2024-2025 Engagement –

Have your say on Future Federation - Draft Delivery Program and Budget. This engagement opportunity is asking for your feedback and is open for public comment through to 5pm on Tuesday, June 4 2024. A series of town meetings, pop-up and drop-in sessions will be held throughout this period to engage with our community.

Councillor briefings in early June 2024 –Councillors and Council Staff will receive all feedback and submissions.

June Council Meeting –

Adoption of Future Federation Delivery Program/ Operational Plan and Budget.

*Grey pin represents the whole LGA

• Continue to work on the delivery of Corowa Foreshore Structure Plan incorporating four separate Precinct masterplans.

• Seek public and private sector investment for upgrades to Ball Park Caravan Park.

• Finalise John Foord Corowa Reserve Masterplan incorporating impact of flood event and new facilities.

• Develop a Masterplan for Memorial Park / Cross Street Reserve.

• Lobby NSW Government for feasibility study for an alternative route for heavy vehicles through Howlong.

• Commencement of the Stormwater Service Strategy.

• Advocate for funding for the renewal of the Mulwala Water Treatment Plant.

• Undertake structural updates to the Mulwala Pioneer Museum.

• Lobby NSW Government for an accelerated design program for the construction of the new Lake Mulwala Bridge.

• Undertake flood repair and recovery activities as funded.

• Investigate Alternate Heavy Vehicle Route.

• Undertake Oaklands recreation Reserve - Stage 2 project works.

• Finalisation of the Morundah Flood Mitigation project.

• Undertake a feasibility study to investigate a voluntary house raising scheme for Boree Creek and a voluntary purchase scheme for Boree Creek and Urana.

• Undertake flood repair and recovery activities as funded.

• Finalise the Asset Management Plan for local roads, bridges and footpaths.

• Develop a Stormwater Drainage Strategy for urban areas.

• Finalise the Waste Strategy.

• Ensure the Local Environmental Plan and Growth Strategy considers development of industrial and commercial land precincts.

• Support and encourage opportunities for increased public and private sector investment across the Council area.

• Develop a Dog Off-leash strategy.

• Continue to maintain Council’s nine cemeteries.

• Continue to work with Murrumbidgee Primary Health Network and medical service providers to support the retention and attraction of Primary Healthcare services.

• Review the Local Emergency Management Plan.

ONE YEAR FINANCIAL SUMMARY

ANNUAL BUDGET PRINCIPLES

Consistent with the requirements of Section 8B of the Local Government Act 1993, Council has applied the following principles of sound financial management in preparing plans for 2024/25 and future year estimates:

• Council spending should be responsible and sustainable, aligning general revenue and expenses.

• Council should invest in responsible and sustainable infrastructure for the benefit of the local community.

• Council should have effective financial and asset management, including sound policies and processes for performance management and reporting, asset maintenance and enhancement, funding decisions and risk management practices.

• Council should have regard to achieving intergenerational equity, including ensuring policy decisions are made after considering their financial effects on future generations and the current generation funds the cost of its services.

Of note in 2024/25, particular emphasis has been placed on the following matters:

• Recommendations from the recent independent review by Professor Joseph Drew of the University of Newcastle

• Renewal of existing assets not new assets, particularly with roads and drainage

• Focus on asset maintenance

• Emphasis on accommodating needs before wants

• Pricing review to send “appropriate price signals”

• Council’s current financial position and the constraints resulting from Council’s unrestricted cash balance

Further detail on how these principles have been applied is contained in the Long Term Financial Plan.

OPERATING INCOME

Council is budgeting to receive $51.67 million in operating income in the financial year 2024/25. This is an increase of $5.39 million or 12% on 2023/24 budgeted income. It is inclusive of 17% temporary Special Rate Variation increase for 2024/25 and expected increases to Financial Assistance Grants and Roads to Recovery funding. See graph to the right.

OPERATING EXPENDITURE

Council is budgeting to expend $54.78 million in operating expenditure in the financial year 2024/25. This is an increase of $3.47 million or 7% on 2023/24 budgeted expenditure. Increases primarily relate to the follow:

• Additional resourcing for planning and building resulting from the upcoming service review

• Conduct of the 2024 local government election

• Legislative requirements following local government elections

• Additional depreciation due to new assets becoming operational, such as the upgraded Corowa Saleyards.

• Award increases for payments to staff and the increase to the superannuation guarantee contribution.

The expenditure includes $0.27 million in operating expenses relating to the temporary SRV, with the remaining additional general rate income to be directed to capital expenditure.

Operating expenditure is categorised according to the nature of the expenditure as follows:

When compared to other NSW rural councils with population between 10,0001 and 20,000, Federation Council average residential rates are the fifth lowest, as reported in the graph to the left.

Comparison has also been made with NSW nearby councils and the graph to the left shows Federation Council compared to our neighbouring average residential rates.

Federation Council is proposing to apply the total IPART approved temporary SRV increase of 17% for 2024/25, which includes the rate peg of 4.5%, effectively an increase of 12.5% above the rate peg. On average, residential rates will increase to $1,032 with $232 contributed from the temporary SRV increase.

Draft Revenue Policy

for 2024/25

The draft Revenue Policy for 2024/25 contains proposed changes to rates, fees and charges to apply from 1 July 2024. It is proposed to increase some fees by greater than inflation. This is to reduce the net cost to Council and therefore the contribution from general rates.

It is a key recommendation from the Independent Review undertaken by the University of Newcastle, where it is recommended that Council send the appropriate price signals (recommendation 1).

Affected fees and charges include:

• Water supply access and usage

• Sewer access

• Cemeteries

• Urana newsletter advertising

The domestic waste kerbside collection fee will increase by 11% for existing serviced properties and by 33% for Northern properties transitioning from a one-bin service to a three-bin service. The waste facility management charge will remain unchanged at $65.

The Revenue Policy recognises the temporary SRV increase of 17% to general rates from 1 July 2024. Four options have been developed for Council to consider in applying the general rates that it needs to collect to deliver services. This takes on board community feedback from 2023/24 on the impact of general rate increases on pensioners and the ongoing cost of living pressures. A final determination will be made at the June 2024 Council meeting. A rates calculator is available on Council’s website to enable ratepayers to better understand the impact of these options and provide their feedback prior to Council determining a final option. Further information is available in Section 1 of the draft Revenue Policy 2024/25.

Proposed Service Level Changes

There are some service level changes proposed in draft plans for 2024/25:

• Increased service level in:

1. Asset renewal with 100% of recommended road and other General Fund infrastructure asset renewal recognised per the Strategic Asset Management Plan. Total capital program is estimated to cost $240 million over 10 years;

2. $1 million building preventative maintenance program over 10 years; and

3. Provide additional resourcing for improved planning and building services with projected total of $7 million over 10 years.

4. Three bin waste collection service for Northern Properties.

• Reduce service level in:

1. Community recognition weeks, e.g., Youth Week, Seniors Week, Volunteer Week by reducing allocation of $150,000 over 10 years; and

2. $420,000 less budget provision for Parks and gardens over 10 years.

3. Community Grants Program by removing allocation of $600,000 over 10 years.

4. Removal of town skip bbins.

Our Long Term

Financial Plan options

The updated Long Term Financial Plan takes into consideration the same financial principles as Council’s draft Annual Budget.

Within the Long Term Financial Plan, four scenarios have been developed:

• Baseline – models the financial impact of delivering current services with some minor service

• reductions, renewing assets in accordance with Council’s Strategic Asset Management Plan and no future increase above the rate peg to general rates.

• Baseline with intervention – models the financial impact of delivering current services with some minor service reductions, renewing assets at 50% of the level recommended in Council’s Strategic Asset Management Plan and no future increase above the rate peg to general rates.

• Planned – models the financial impact of delivering current services with some minor service reductions, renewing assets in accordance with Council’s Strategic Asset Management Plan and a cumulative 80% increase to general rates over two years (50% in 2025/26, effectively including the temporary 19% and 17% SRV increases, and 20% in 2026/27).

• Alternate – models the financial impact of delivering current services with some minor service reductions, renewing assets in accordance with Council’s Strategic Asset Management Plan and a cumulative 112% increase to general rates over three years (50% in 2025/26, effectively including the temporary 19% and 17% SRV increases, 20% in 2026/27 and 10% in 2027/28) to provide a financially sustainable solution for the ten years of the LTFP.

Both the Planned scenario and Alternate scenario contain significant permanent general rate increases. It is important to note that these increases effectively include the 19% increase applied in 2023/24 and 17% as planned for 2024/25. Professor Drew will be conducting his own analysis of Council’s Long Term Financial Plan, inclusive of the above scenarios and other strategic documents before engaging with the community on SV options in July 2024. Any increase to general rates above the rate peg will require Council endorsement and IPART approval.

Special Rate Variation Project 24-25

We’re working on a project to increase rates – here is why:

To support our community’s needs, Federation Council provides a comprehensive range of community and library services, events, venues, public spaces and parks, as well as sport and recreation facilities.

These services are provided to local residents, business and industry, developers and investors as well as people visiting the region. We cater for a diverse range of community needs and encourage environmentally acceptable development in the region.

For many years now, Federation Council has been on a financial sustainability journey. Council, like many other NSW Councils, is faced with the challenge of making sure we have enough money to continue to continue to meet legislative requirements, deliver the large range of services we provide and to look after our infrastructure into the future – things like roads, footpaths, bridges, stormwater drains, parks, libraries, community buildings and swimming pools.

We know that our community values the services we provide and places a high priority on maintenance and renewal of our Council’s infrastructure when it is needed, so the current trend of our service delivery and asset costs exceeding our income needs to change.

In February 2023, Council lodged an application with IPART to increase general income above the rate cap. In May 2023, Council was granted a two-year temporary rate increase of 19% in year one (2023/24) and 17% in year two (2024/25). Council had requested a general rate increase of 19% for 2023/24, with 17%, 14% and 10% for the following three years and for the increases to remain in the rate base, (not be temporary), and reverting to the ordinary rate peg for 2027/28 onwards. Following Council’s Independent Review into The Advantages and Disadvantages of Amalgamation and Federation Council’s Financial Sustainability Journey Report, as per recommendation 75: an appropriate expert has been engaged to work with Council from February 2024 onwards to progress through the substantial list of tasks that need to be completed prior to applying for a permanent SV.

Professor Joseph Drew of the University of Newcastle is leading this project and is supported by Professor Ferreira and Professor Miyazaki. Professor Drew will be engaging with stakeholder groups in May 2024, and hosting a series of public meetings to seek feedback on a future SV in July 2024.

Find

out more

about the Special Rate Variation Project 24-25

Ratepayers and residents are encouraged to scan the QR to view the suite of information available on the Special Rate Variation Project 24-25 on Council’s website.

Information includes:

• Why are we working on a project to increase rates?

• Why do we need to increase rates via a Special Variation project?

• Our Long Term Financial Plan Options

• How can I be engaged in this project?

• What is a Special Variation?

• Professor Joseph Drew video updates.

Scan the QR code!