Agenda of Ordinary Council Meeting - Tuesday, 27 September 2022

Item No: 2.1
Title: Monthly Finance Report August 2022
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Reference: F2020/03205 - D15149886

Author: Peter Correy, Group Financial Controller, Finance

Executive: David Farmer, Chief Executive Officer

Recommendation

1 That Council receive the report Monthly Financial reports – August 2022

2 That Council adopt the amendments to the 2022-23, 2023-24 and 2024-25 Capital Works Programs detailed in Attachment 9.

Report purpose

To present to Council the monthly financial reports for August 2022.

Executive Summary

This report presents the August 2022 monthly financial reports for Central Coast Council.

Background

The monthly financial reports have been prepared in accordance with the requirements of the Local Government Act 1993 (“LG Act”), the Local Government (General) Regulation 2005 (“LG Reg”), and the relevant accounting and reporting requirements of the Office of Local Government prescribed Code of Accounting Practice and Financial Reporting and Australian Accounting Standards. background should include relevant previous resolutions or legislation that is relevant.

Report

The reports disclose the year-to-date financial results in Operating Statement format, they reflect the organisational structure and are presented by Department and Unit. The reports include a traffic light indicator of current status – on track (green light), off track (red light) continue to monitor status (orange light). Relevant supporting comments are included, as well as a graphical representation of the financial results.

The Local Government Code of Accounting Practice and Financial Reporting (Guidelines) require Council to recognise rates income at the beginning of the financial year when levied. However, for internal reporting purposes Council recognises rates revenue on a continual basis throughout the financial year thereby aligning revenue with Council’s expenditure for the delivery of services to the community.

Consultation

In the preparation and finalisation of the monthly reports for August 2022, all business areas of Council contributed to the information contained within the financial reports.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

1108/20 That any motions put before Council for the remainder of this term of Council that have financial implications require the Chief Executive Officer to provide a report on how those additional costs will be met.

The following statement is provided in response to this resolution of Council.

Financial Strategy Ratios

This Report is prepared in conjunction with Council’s Financial Strategy, adopted by Council on 23 August 2022 and reports the following financial performance ratios:

· Operating Performance Ratio

· Unrestricted Current Ratio

· Unrestricted Cash Position

· Loan Principal Payments

· Capital Program Funding

Operating Performance Ratio – 6.7%

The Operating performance ratio measures Council’s achievement of containing operating expenditure within operating revenue and is set between 1% and 8%. It is calculated as

=	Total continuing operating revenue (excluding capital grants and contributions) less operating expenses
	Total continuing operating revenue (excluding capital grants and contributions)

Unrestricted Current Ratio – 1.6

The unrestricted current ratio identifies whether there are sufficient funds available to meet short term obligations and is set at the industry benchmark of 1.5. It is calculated as

=	Current assets less all external restrictions
	Current liabilities less specific purpose liabilities

Unrestricted Cash Position

Unrestricted Cash are funds available to cover operational needs and unexpected or emergency costs within each fund. Council will aim to maintain unrestricted cash in each fund and set a target band of between 3% and 10% for each fund. This will monitor the targeted use of unrestricted funds on community services and infrastructure. It is calculated as

=	Unrestricted Funds
	Total continuing operating revenue (excluding capital grants and contributions)

Consolidated – 38%

General Fund (including Drainage) – 28%

Water Fund – (5%)

Sewer Fund – 128%

Domestic Waste – 28%

Loan Principal Repayments

The operating result (excluding capital grants and contributions) for each fund for the year plus if necessary, pre-existing unrestricted cash reserves in each fund needs to at least cover the net loan principal repayments of that fund for that same year. This excludes the emergency loans in the General Fund as the balance on 31 August 2022 of $134.7M is repaid under different terms set by the lending institutions. Loan repayment coverage is calculated as

=	YTD operating revenue (excluding capital grants and contributions) less operating expenses
	YTD loan principal repayments

Consolidated – 5.4x

General Fund (including Drainage) – YTD loan repayments $Nil

Water Fund – 3.0x

Sewer Fund – 8.6x

Capital Program Funding

Council’s intent is to provide at least sufficient funds from operations for the capital budget to replace assets as they fall due. The depreciation target is currently used as a proxy for the long-term annual funding requirement to replace Council’s assets at their gross replacement value. Council will aim to achieve the industry benchmark of 100% in each fund. Capital funding percentage is calculated as

=	YTD Capital budget
	YTD Depreciation expense

Consolidated – 115%

General Fund (including Drainage) – 122%

Water Fund – 66%

Sewer Fund – 128%

Trading Results

The attached financial reports record actual revenue and expenditure, tracking against the initial budget of Council for August and for the year-to-date reporting period to 31 August 2022.

For August, Council is reporting an operating result surplus of $9.1M, before capital income, which was favourable to budget by $1.8M and a net operating surplus of $14.5M which was favourable to budget by $3.1M.

Year-to-date, Council is reporting an operating result surplus of $8.7M, before capital income, which was favourable to budget by $6.6M and a net operating surplus of $15.5M which was $6.3M favourable to budget.

Cash and Investments / External Borrowings

Council held $678.1M in cash and investments at 31 August 2022.

Council’s Consolidated and General Fund (incl Drainage Fund) year-to-date and full year cash flow summaries are tabled below.

External borrowings at 31 August were $311.5M. During August, principal loan repayments of $1.3M were repaid bringing total year-to-date principal loan repayments of $1.6M which are in line with the lending institutions loan repayments schedules.

Restricted Funds

Fund	General Fund ($’000)	Drainage Fund ($’000)	Total General Fund ($’000)	Water Fund ($’000)	Sewer Fund ($’000)	Domestic Waste Fund ($’000)
External Restricted Funds	190,228	37,772	228,000	11,629	20,738	97,108
Internal Restricted Funds	91,807	20	91,827	908	877	47
Total Restricted Funds	282,035	37,792	319,827	12,537	21,615	97,155
Unrestricted Funds	131,920	(36,054)	95,866	(4,393)	114,223	21,300
Total funds by Fund	413,955	1,738	415,693	8,144	135,838	118,455

The General Fund unrestricted balance (inclusive of Council’s drainage fund) is currently $95.9M and is available to meet the August 2022 unrestricted funds deficit in Council’s Water Fund of $4.4M.

Capital Works

Council is reporting year-to-date capital works expenditure to August 2022 of $16.7M compared to budget of $22.8M Council currently has 99 active projects.

Proposed amendments to the Capital Works Program are detailed in Attachment 9 and will result in a decrease to the 2022-23 program of $9.1M, and an increase to 2023-24 of $9.8M. This is attributable to rephasing of the Gosford Regional Library project to reflect delays in receipt of Development Approval from the Department of Planning and Environment.

Link to Community Strategic Plan

Theme 4: Responsible

Goal G: Good governance and great partnerships

R-G2: Engage and communicate openly and honestly with the community to build a relationship based on trust, transparency, respect and use community participation and feedback to inform decision making.

Attachments

1 ⇨	Financial Performance - Monthly Finance Report August 2022	Provided Under Separate Cover	D15345302
2 ⇨	Consolidated and By Fund August 2022 Monthly Financial Report	Provided Under Separate Cover	D15340872
3 ⇨	Office of the Chief Executive Officer August 2022 Monthly Financial Report	Provided Under Separate Cover	D15340875
4 ⇨	Community and Recreation Services August 2022 Monthly Financial Report	Provided Under Separate Cover	D15340877
5 ⇨	Infrastructure Services August 2022 Monthly Financial Report	Provided Under Separate Cover	D15340878
6 ⇨	Water and Sewer August 2022 Monthly Financial Report	Provided Under Separate Cover	D15340889
7 ⇨	Environment and Planning August 2022 Monthly Financial Report	Provided Under Separate Cover	D15340931
8 ⇨	Corporate Services August 2022 Monthly Financial Report	Provided Under Separate Cover	D15340892
9 ⇨	Proposed Capital Budget Adjustments	Provided Under Separate Cover	D15342015

Item No: 2.2
Title: Investment Report for 31 August 2022
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Reference: F2004/06604 - D15335074

Author: Devini Susindran, Team Leader

Manager: Mellissa McKee, Financial Controller

Peter Correy, Group Financial Controller

Executive: David Farmer, Chief Executive Officer

Recommendation

1 That Council note the Investment Report for August 2022.

2 That Council note that internally restricted funds are unrestricted funds that have been internally allocated to a certain purpose.

3 That Council allocate the required unrestricted funds available in the General Fund to meet its August 2022 unrestricted funds deficit of $40.45M in Water and Drainage funds as set out in this report.

4 That Council note the August Restrictions are draft only, subject to 30 June 2022 Financial Statements audit review.

Report purpose

To present the monthly Investment Reports in accordance with cl. 212 of the Local Government (General) Regulation 2005 which states as follows:

1 The Responsible Accounting Officer of a Council

a must provide the council with a written report (setting out details of all money that the council has invested under section 625 of the Act) to be presented—

i. if only one ordinary meeting of the council is held in a month, at that meeting, or

ii. if more than one such meeting is held in a month, at whichever of those meetings the council by resolution determines, and

b must include in the report a certificate as to whether the investment has been made in accordance with the Act, the regulations and the council's investment policies.

2 The report must be made up to the last day of the month immediately preceding the meeting.

Executive Summary

This report details Council’s investments at 31 August 2022.

Background

Council’s investments are made in accordance with the Local Government Act 1993, Local Government (General) Regulation 2005, the Investment Policy adopted at the Ordinary Council Meeting on 28 June 2022, Ministerial Investment Order issued February 2011 and Division of Local Government (as it was then known) Investment Policy Guidelines published in May 2010.

Current Status

Council’s current cash and investment portfolio totals $678.13M at 31 August 2022.

Council’s Cash and Investment Portfolio by Source of Funds

Source of Funds	Value ($’000)
Investment Portfolio	649,395
Transactional accounts Per Bank Statement and cash in hand	28,735
Total	678,130

Council’s Portfolio is held in separate funds by purpose and summarised as follows:

Fund	General Fund ($’000)	Drainage Fund ($’000)	Total General Fund ($’000)	Water Fund ($’000)	Sewer Fund ($’000)	Domestic Waste Fund ($’000)
External Restricted Funds	190,228	37,772	228,000	11,629	20,738	97,108
Internal Restricted Funds	91,807	20	91,827	908	877	47
Total Restricted Funds	282,035	37,792	319,827	12,537	21,615	97,155
Unrestricted Funds	131,920	(36,054)	95,866	(4,393)	114,223	21,300
Total funds by Fund	413,955	1,738	415,693	8,144	135,838	118,455

Note: The above table consolidates General Fund and Drainage Fund. From 1 July 2026, Drainage Fund fees and charges will no longer be regulated by IPART and will become part of Council’s General Fund.

During August, Council’s total cash and investments increased by $49.11M from $629.02M to $678.13M. The increase during August was primarily due to Annual Rates levied during July with first instalment received in August 2022.

Detailed restrictions have been provided in Attachment 2. Council is continuing to manage the reported negative unrestricted funds balances in the Water and Drainage Funds.

The negative unrestricted balance is currently $40.45M, made up of unrestricted fund deficits in the Water and Drainage Funds, as per the table above.

The unrestricted funds balances above, across the five Funds will increase and decrease during each financial year as revenues are received and expenditures occur. In the interim, the unrestricted funds deficit of $40.45M is proposed to be funded through the General Fund’s available unrestricted cash balance of $131.92M at 31 August 2022.

In 2026 Council’s Drainage Fund will be consolidated into Council’s General Fund as IPART will no longer regulate Stormwater Drainage prices.

Portfolio management

Council’s Investment Portfolio is managed through term deposits, floating rate notes and bond maturities and placements.

Total net return on the portfolio for Council in August, comprising entirely of interest earned, was $1.19M. The total value of the Council’s investment portfolio at 31 August 2022 is outlined in Table 1 below.

Table 1 – Portfolio movement Investment only

The market value of Council’s investment portfolio at 31 August 2022 is $649.40M.

Council’s investments are evaluated and monitored against a benchmark appropriate to the risk (APRA Standards BBB long term or above) and time horizon of the investment concerned.

A summary of the term deposit and floating rate notes maturities are listed in Table 2 below.

Table 2 - Investment Maturities

The investment portfolio is concentrated in AA above (26.07%), A (26.89%), and BBB (47.04%).

Council monitors and manages the portfolio taking into consideration credit ratings of financial institutions, interest rates offered for the maturity dates required and counterparty exposure. All of Council’s investments were within policy guidelines at 31 August 2022.

The current spread of investments and counterparty exposure for August 2022 are shown in Graphs 1 and 2 respectively in Attachment 3.

Environmental, Social and Green (ESG) Investments

Council continues to look for ‘ESG’ investment opportunities subject to prevailing investment guidelines. A list of current ESG investments held is contained on the Investment listing at Attachment 1 and are highlighted in green.

Council currently holds 4.80% or $31.17M in ESG investments as at 31 August 2022.

Portfolio Return

Interest rates on investments in the month, ranged from 0.55% to 3.64%. The monthly Bank Bill Swap Rate (BBSW) benchmark was 1.89%. Changes in economic conditions have led to the Reserve Bank of Australia (RBA) increasing its cash rate which was at a historic low of 0.10% until 4 May 2022 to 2.35% on 7 September 2022. BBSW has also followed this trend and has been increasing steadily. Comparative interest rates are shown in the table below.

Month	RBA Cash Rate	1 Month Bank Accepted Bills
February 2022	0.10%	0.01%
March 2022	0.10%	0.03%
April 2022	0.10%	0.08%
May 2022	0.35%	0.39%
June 2022	0.85%	0.92%
July 2022	1.35%	1.48%
August 2022	1.85%	1.89%
September 2022	2.35%	Will be available at month end

Source: RBA Statistics Interest Rates and Yields – Money Market – Monthly – F1.1

Investments are made within Council policy and at the best rates available at the time of placement. Due to interest rate movements outlined above, the following investments had earnings below the current monthly BBSW rate, listed in maturity date order.

Bank	Type of investment	Placement Date	Maturity Date	Value	Interest Rate
Auswide Bank	Term Deposit	1 March 2022	7 September 2022	$10,000,000	0.80%
Commonwealth Bank	Term Deposit	3 June 2022	14 September 2022	$ 5,000,000	1.87%
Commonwealth Bank	Term Deposit	24 May 2022	21 September 2022	$ 5,000,000	1.80%
Members Equity Bank	Term Deposit	24 February 2022	22 September 2022	$ 5,000,000	0.65%
Commonwealth Bank	Term Deposit	24 May 2022	28 September 2022	$ 5,000,000	1.84%
Members Equity Bank	Term Deposit	24 February 2022	21 October 2022	$ 5,000,000	0.65%
Westpac Banking Corporation	Term Deposit	25 February 2022	22 February 2023	$10,000,000	0.88%
National Australia Bank	Term Deposit	25 February 2022	2 March 2023	$ 5,000,000	0.88%
My State Bank	Term Deposit	24 February 2024	26 February 2024	$ 5,000,000	1.70%
My State Bank	Term Deposit	24 February 2024	4 March 2024	$ 5,000,000	1.70%
My State Bank	Term Deposit	24 February 2024	11 March 2024	$ 5,000,000	1.70%
National Australia Bank	Term Deposit	16 June 2020	14 June 2024	$10,000,000	1.15%
Suncorp Bank	Bond	20 September 2021	30 July 2024	$ 2,500,000	1.85%
Macquarie bank	Bond	27 August 2021	7 August 2024	$12,000,000	1.75%
Bendigo Adelaide Bank	Bond	20 September 2021	6 September 2024	$ 9,390,000	1.70%
Hongkong & Shanghai Bank	Bond	14 January 2021	27 September 2024	$ 1,480,000	1.50%
Macquarie Bank	Bond	14 January 2021	12 February 2025	$25,000,000	1.70%
NSW Treasury Bond	Bond	21 November 2019	20 March 2025	$ 2,000,000	1.25%
Bank of Queensland	Term Deposit	16 June 2020	16 June 2025	$10,000,000	1.53%
UBS Australia Limited	Bond	14 January 2021	30 July 2025	$ 4,000,000	1.20%
Bendigo and Adelaide Bank	Floating rate Notes	20 September 2021	2 December 2025	$35,500,000	1.74%
Newcastle Permanent Building Society	Floating Rate Notes	4 March 2021	4 March 2026	$ 1,000,000	1.87%
Northern Territory Treasury Corporation	Bond	26 August 2021	15 December 2026	$ 5,000,000	1.40%

Note: green shading indicates ESG investments

The weighted running yield for August of 2.26% for Central Coast Council is favourable compared to the rolling three-year benchmark bank bill swap (BBSW) Index of 0.32% as shown in Graph 3 - Portfolio Returns in Attachment 3.

Market values reflected in the Portfolio valuation report in Attachment 5 have been used to record the unrecognised gains/(losses) in tradeable fixed rate bonds and floating rate notes. Interest accrued has been recorded separately and is not reflected in portfolio valuations.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

The following statement is provided in response to this resolution of Council.

Council’s investment portfolio includes rolling maturity dates to ensure that Council has sufficient liquidity to meet its ongoing obligations.

Certification:

I hereby certify the investments summarised in the report have been made in accordance with section 625 of the Local Government Act 1993, clause 212 of the Local Government (General) Regulations 2021 and Council’s investment policy

Peter Correy, Responsible Accounting Officer

Link to Community Strategic Plan

Theme 4: Responsible

Goal G: Good governance and great partnerships

R-G4: Serve the community by providing great customer experience, value for money and quality services.

Attachments

1 ⇨	Summary of Investments as at 31 August 2022	Provided Under Separate Cover	D15335971
2 ⇨	Summary of Restrictions as at 31 August 2022	Provided Under Separate Cover	D15336025
3 ⇨	Investment Report Graphs as at 31 August 2022	Provided Under Separate Cover	D15336027
4 ⇨	Treasury Direct Trading limits Report as at 31 August 2022	Provided Under Separate Cover	D15336028
5 ⇨	Treasury Direct Portfolio Valuation Report as at 31 August 2022	Provided Under Separate Cover	D15336029

Item No: 2.3
Title: Draft 2021-2022 Financial Reports for Central Coast Council and Central Coast Council Water Supply Authority
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Reference: F2022/00467 - D15261878

Author: Mellissa McKee, Financial Controller

Manager: Peter Correy, Group Financial Controller, Finance

Executive: David Farmer, Chief Executive Officer

Recommendation

1 That Council note that the draft Consolidated Financial Reports for Central Coast Council for the period from 1 July 2021 to 30 June 2022 are presented to Council. The Consolidated Financial Report includes the General Purpose financial report, Special Purpose financial report and Special Schedules, which are Attachments 1, 2 and 3 to the business paper.

2 That Council also note that the draft Consolidated Financial Reports have been prepared in accordance with the requirements of the Local Government Act 1993 (“LG Act”), the Local Government (General) Regulation 2005 (“LG Reg”) and the relevant accounting and reporting requirements of the Office of Local Government prescribed Code of Accounting Practice and Financial Reporting 2021/22 and Australian Accounting Standards.

3 That Council note that the draft Financial Reports for Central Coast Council Water Supply Authority for the period from 1 July 2021 to 30 June 2022 is presented to Council, which is Attachment 4 to the business paper.

4 That Council note that the draft Financial Reports for Central Coast Council Water Supply Authority as presented are in accordance with s.45 of the Government Sector Audit Act 1983, the Public Finance and Audit Regulation 2015, Australian Accounting Standards and other pronouncements of the Australian Accounting Standards Board.

5 That Council authorise, the Administrator to execute all documents related to the draft 2021-2022 Consolidated Financial Reports in accordance with s413(2)(c) of the LG Act, and cl. 215(1)(b)(i) of the LG Reg.

6 That Council authorise, the Chief Executive Officer to execute all documents related to the draft 2021-2022 Consolidated Financial Reports in accordance with s413(2)(c) of the LG Act, and cl. 215(1)(b)(iv) of the LG Reg.

7 That Council authorise, the Responsible Accounting Officer of the Council, to execute all documents related to the draft 2021-2022 Consolidated Financial Reports with s413(2)(c) of the LG Act, and cl. 215(1)(b)(iii) of the LG Reg.

8 That Council authorise, for the purposes of s.45 of the Government Sector Audit Act 1983, its Administrator, Chief Executive Officer and Responsible Accounting Officer to execute all documents related to the draft 2021-2022 Financial Reports for Central Coast Council Water Supply Authority.

9 That Council resolve, for the purposes of s. 413(1) of the LG Act, to refer the draft Consolidated Financial Reports for Central Coast Council and the draft Financial Reports for Central Coast Council Water Supply Authority for the period from 1 July 2021 to 30 June 2022 to the Audit Office of New South Wales, for external audit.

10 That Council delegate to the Chief Executive Officer to set the date for the meeting to present the audited 2021-2022 financial reports, together with the auditor's reports, to the public in accordance with s418(1)(a), (b) of the LG Act.

Report purpose

To consider the draft 2021-2022 unaudited Financial Reports for Central Coast Council and Central Coast Council Water Supply Authority and to refer them to external audit.

Executive Summary

The Financial Reports for Central Coast Council and Central Coast Council Water Supply Authority set out the financial performance, financial position and cash flows of Council and Council’s Water Supply Authority for the financial year ended 30 June 2022.

The preparation of Financial Reports is a legislative requirement under the Local Government Act 1993 (“LG Act”), the Local Government (General) Regulation 2005 (“LG Reg”) and Government Sector Audit Act 1983.

The Financial Reports have been prepared in accordance with the legislation listed above and the relevant accounting and reporting requirements of the Office of Local Government (OLG) prescribed Code of Accounting Practice and Financial Reporting 2021/22 and Australian Accounting Standards.

The presentation of the draft Financial Reports and referral to audit is a statutory requirement.

Background

The Financial Statements for the 2021-2022 reporting period are the formal record of the business performance of all Council activities.

The draft Consolidated Financial Reports, which includes the General Purpose financial report, Special Purpose financial report and Special Schedules, includes all of Council’s business activities including the business activities of Council which are regulated under the Water Management Act 2000. The draft Consolidated Financial Reports comprise Attachment 1, 2 and 3 to this business paper.

The draft Consolidated Financial Reports have been prepared in accordance with the requirements of the Local Government Act 1993 (“LG Act”), the Local Government (General) Regulation 2005 (“LG Reg”) and the relevant accounting and reporting requirements of the Office of Local Government (OLG) prescribed Code of Accounting Practice and Financial Reporting 2021/22 and Australian Accounting Standards.

The draft 2021-2022 Financial Reports for Council’s Water Supply Authority functions are Attachment 4 to this business paper.

The Financial Reports have been prepared in accordance with the requirements of the Government Sector Audit Act 1983, Local Government Act 1993 (“LG Act”), the Local Government (General) Regulation 2005 (“LG Reg”) and Australian Accounting Standards.

In accordance with s. 413(1) of the LG Act, Council must prepare financial reports for each year, and must refer them for audit as soon as practicable after the end of that year. Council is required to formally resolve to refer the draft financial reports to audit, to submit audited Financial Reports to the OLG by 31 October 2022 and formally present to the Community the final reports complete with the auditor’s reports no later than 5 December 2022 in accordance with s. 418(2) of the LG Act.

Council’s external auditor, The Audit Office of New South Wales (“Audit Office”) will sign-off and provide the formal audit opinion to Council. This is the standard practice and in accordance with legislative requirements.

Current Status

Audit Status

The draft 2021-2022 Financial Statements do not yet include the financial impact of asset revaluations. The following revaluations are to be completed and included in the Financial Statements:

· Open Space assets

· Water and sewer infrastructure assets

· Roads and drainage infrastructure assets

Once Council receives the formal audit opinion, the Financial Statements will then be updated to include the audit opinions and notice of public meeting to be held in accordance with Section 418 (2) of the Local Government Act 1993, at which time Council can invite the external auditor, Caroline Karakatsanis of the Audit Office, or her delegate to formally present the report.

Central Coast Council General Purpose Financial Reports

In accordance with s. 413(2)(a) of the LG Act, Council’s Financial Reports must include General Purpose Financial Reports.

Section 413(2)(c) of the LG Act requires Council to prepare a statement in the approved form as to its opinion on the General Purpose financial reports.

Council’s Chief Executive Officer and Responsible Accounting Officer certify that the 2021-2022 General Purpose financial reports for Central Coast Council have been prepared in accordance with the LG Act, LG Reg, Office of Local Government prescribed Code of Accounting Practice and Financial Reporting 2021/22 and Australian Accounting Standards.

Analysis of 2021-2022 Financial Statements

This analysis provides an overview of the financial performance and the financial position of Central Coast Council for the reporting period from 1 July 2021 to 30 June 2022.

Key statements and notes detailed in this analysis include:

· Income Statement

· Statement of Financial Position

· Statement of Performance Measures (Note G5 to the Financial Statements)

Council’s primary Financial Statements are in the format required by accounting standards and must conform to the provisions of the Local Government Code of Accounting Practice and Financial Reporting (Guidelines) issued by the Office of Local Government (OLG).

In this report the General Purpose Financial Statements, Special Purpose Financial Statements and Special Schedules for the consolidated entity are referred to as “Consolidated Financial Statements”.

Council is required to publish in the Consolidated Financial Statements the 2021-2022 the original budget adopted by Council for 2021-2022, in line with the Local Government Code of Accounting Practice and Financial Reporting 2021/22 issued in January 2022. To provide context for the actual results for the reporting period, the tables in this report also reference the original budget for 2021-2022.

This report provides commentary on significant items in the Financial Statements for Central Coast Council.

Note that there may be some small rounding differences throughout this report as whole dollars are rounded to the nearest $0.1M.

Consolidated Financial Statements

The comparison of the financial performance for Central Coast Council in the 2021-2022 Financial Statements (1 July 2021 to 30 June 2022) is to the 2020-2021 financial year (1 July 2020 to 30 June 2021).

Operating Result

The operating surplus before capital grants and contributions for the 2021-2022 financial year is $47.3M. The operating result including capital grants and contributions of $61.5M, is a surplus of $108.8M. The operating result before capital grants and contributions in 2021-2022 shows significant improvement of $118.0M on the prior year. The operating result in 2020-2021 was adversely impacted by the organisational restructure.

	2021-2022 Actual $'000	2020-2021 Actual $'000
Income from operations	603,100	541,944
Expenditure from operations	555,769	612,635
Operating result for continuing operations (excluding capital grants and contributions)	47,331	(70,691)
Income from capital grants and contributions	61,452	83,702
Net operating result (including capital grants and contributions)	108,783	13,011

The below table compares the 2021-2022 actual results to the original budget adopted.

Income Statement	2021-2022 Actual $'000	2021-2022 Original Budget $'000	Variance to Original Budget Favourable / (Unfavourable) $'000
Income from operations	603,100	573,325	29,775
Expenditure from operations	555,769	566,282	10,513
Net operating result (excluding capital grants and contributions)	47,331	7,043	40,288
Income from capital grants and contributions	61,452	42,890	18,562
Net operating result (including capital grants and contributions)	108,783	49,933	58,850

The variance between the actual net operating result (excluding capital grants and contributions) of $47.3M surplus and the original budgeted net operating result (excluding capital grants and contributions) of $7.0M surplus is a $40.3M favourable variance driven by Council’s financial recovery plan put in place in October 2020 that has been successfully executed.

The most significant factors that contributed to the favourable variance of $40.3M include:

· Unbudgeted gain on disposal of surplus assets $21.5M

· Depreciation underspend of $15.1M due to the reduction in Council’s capex program and due to delays incurred delivering the program

· Employee Costs underspend of $13.0M due to difficulties encountered filling vacant positions.

Income from Operations

The following table reports income by category and is followed by explanations relating to variations between actual income to the original budget.

Income from Operations	2021-2022 Actual $'000	2021-2022 Original Budget $'000	Variance to Original Budget Favourable / (Unfavourable) $'000	Variance to Original Budget Favourable / (Unfavourable) %
Rates and Annual Charges	365,780	361,871	3,909	1.1%
User Charges and Fees	140,237	140,269	(32)	0.0%
Interest and Investment Revenue	7,118	4,442	2,676	60.2%
Other Revenues	12,740	9,196	3,544	38.5%
Grants and Contributions - Operating	47,717	49,491	(1,774)	(3.6%)
Grants and Contributions - Capital	61,452	42,890	18,562	43.3%
Other Income	8,025	8,056	(31)	(0.4%)
Net Gain from disposal of assets	21,483	-	21,483	n/a
Total Income	664,552	616,215	48,337	7.8%

Rates and annual charges

The favourable variance of $3.9M is largely due to additional income received from Domestic Waste annual charges $2.4M, Sewer Service availability charges $2.8M, partially offset by unbudgeted pensioner rebate expense ($1.1M).

User charges and fees

Although user charges and fees in total aligns with budget there were a number of material variations within the category including:

· Favourable variance in RMS user charges for works undertaken on State roads by Council $2.8M

· Favourable variance in sewer usage, trade waste and miscellaneous water and sewer charges $1.0M

· Favourable variance in development assessment income $0.8M

· Favourable variance in Holiday Park and Camping Ground fees following lifting of COVID restrictions $0.7M

· Favourable variance in Pool and Leisure Centre fees following lifting of COVID restrictions $0.4M

· Unfavourable variance in tipping fees ($0.9M)

· Unfavourable variance in water usage charges due to lower demand ($5.0M).

Interest and investment revenue

The favourable variance of $2.7M was due to higher investment portfolio balances during the year and higher RBA official cash rate $2.0M and interest charged on overdue rates and annual charges $0.7M.

Other revenue

The favourable variance of $3.5M is largely attributable to:

· Favourable variance in fines issued by Compliance Services $2.5M

· Favourable variance in sale of scrap metal and gas royalties at Council’s Waste Management facilities $1.1M

· One-off insurance recoveries $0.8M

· Favourable variance in diesel fuel rebate $0.2M.

· Unfavourable variance in forecast unrealised gains on investments ($0.5M).

Grants and contributions - Operating

The unfavourable variance of $1.8M is largely attributable to:

· Favourable variance in prepaid Financial Assistance Grant (FAG) in May 2022 $8.2M

· Unfavourable variance in Child Care operating grant income ($0.3M)

· Unfavourable variance in employee car contributions due to a reduction in staff ($0.6M)

· Unfavourable variance in forecast Bushfire and Environmental grant programs ($3.3M)

· Unfavourable variance in bio-certification scheme contribution income not received ($6.0M).

Grants and contributions - Capital

The favourable variance of $18.6M relates to:

· Additional capital grants for roads, bridges, water and sewer infrastructure and open space assets that were approved subsequent to the adoption of the original budget $27.3M

· Additional income was also received and donated, and developer contributed assets that were not included in the original budget forecast $4.3M

· This was partially offset by lower than anticipated developer contributions received ($13.1M).

Other Income

Other income is in line with budget, with no material variations to original budget.

Net Gain from disposal of assets

Favourable variance represents gain on disposal of surplus land and building parcels as part of Council’s financial recovery plan that were not included in the original budget forecast.

Expenditure from Operations

The following table reports expenditure by category and is followed by explanations relating to variations between actual expenses compared to the original budget.

Expenditure from Operations	2021-2022 Actual $'000	2021-2022 Original Budget $'000	Variance to Original Budget Favourable / (Unfavourable) $'000	Variance to Original Budget Favourable / (Unfavourable) %
Employee benefits and on-costs	162,831	175,833	13,002	7.4%
Borrowing costs	14,588	17,471	2,883	16.5%
Materials and services	165,542	156,680	(8,862)	(5.7%)
Depreciation and amortisation	162,051	177,106	15,055	8.5%
Other expenses	50,757	39,192	(11,565)	(29.5%)
Total Expenditure	555,769	566,282	10,513	1.9%

Employee costs

Favourable variance of $13.0M is primarily due to vacant positions across the organisation. In the current economic climate Council is experiencing difficulties filling vacant positions, as candidates often have several opportunities available to them. Australia currently does not have enough workers to meet job demand, and this is directly impacting Council’s ability to recruit into vacant positions.

Borrowing costs

Favourable variance of $2.9M is due to sewer fund loans that were repaid in April 2021, however budgets had been included for them in the original budget 2021-22. In addition, further sewer fund loans were repaid and not refinanced as expected in March 2022 and the water fund loans that were refinanced achieved lower interest rates than forecast.

Materials and services

Unfavourable variance of ($8.9M) attributable to reduction in net internal revenue forecasts of $10.4M. Internal revenues and expenses net to Materials and Services and the Internal revenue forecasts for recovery from Council’s capex program were overestimated and impacted by the reduction in Council’s capex program.

This was partially offset by a favourable variance in general Materials and Services expenditure of $1.5M.

Depreciation

Favourable variance of $15.1M is due to reduced capital expenditure that resulted in fewer projects being capitalised and depreciated. This was due to severe weather events and supply chain issues that negatively impacted program delivery during the year.

Other expenses

The unfavourable variance of ($11.6M) is mainly due to:

· Favourable variance in EPA Waste Levy due to reduced tonnages received at Council’s Waste Management facilities $1.4M

· Favourable variance in donations and contributions to government and community organisations $1.2M

· Unfavourable variance in bad debts write offs during the year ($1.1M)

· Unfavourable variance due to the recognition of unrealised market value movements in tradeable floating rate notes and bond investments ($13.1M).

Statement of Financial Position

The Statement of Financial Position details the value of what Council owns (“assets”) and what Council owes (“liabilities”).

Within these headings, “Current” means an amount that is due to be realised within the next 12 months whilst “Non-current” indicates an asset or liability that is longer term in nature.

For the movement between financial years, a positive movement means that the values have increased from 30 June 2021 to 30 June 2022.

Statement of Financial Position	30 June 2022 $'000	30 June 2021 $'000	Movement $'000
Assets
Current Assets	306,700	342,370	(35,670)
Non-Current Assets*	7,969,199	7,625,575	343,624
Total Assets	8,275,899	7,967,945	307,954
Liabilities
Current Liabilities	192,882	187,154	(5,728)
Non-Current Liabilities	370,667	397,462	26,795
Total Liabilities	563,549	584,616	21,067

Net Equity	7,712,350	7,383,329	329,021

* Subject to change following inclusion of asset revaluation adjustments

Current assets

Current assets decreased by ($35.7M) due to a ($28.7M) reduction in non-current assets held for sale as a result of the sale program of assets surplus to Council needs, a reduction of ($10.1M) in current cash and cash equivalents and investments, partially offset by an increase in current receivables of $2.8M.

Non-current assets

Non-current assets increased by $343.6M due to an $177.8M increase in investments, $162.0M increase in infrastructure, property plant and equipment mainly as a result of positive revaluation of operational and crown and community land and a $3.2M increase in intangible assets.

Council’s overall cash and investment portfolio as at 30 June 2022 totalled $652.1M compared to $484.4M at 30 June 2021 an increase of $167.7M.

Current Liabilities

Current liabilities increased by ($5.7M) due to a ($11.0M) increase in payables, ($3.5M increase in provisions, ($3.1M) increase in contract liabilities, partially offset by a reduction in borrowings $12.1M. The increases in provisions and contract liabilities were largely offset by reductions in non-current liabilities (see below).

Non-Current Liabilities

Non-current liabilities decreased by $26.8M due to reduction in borrowings of $21.8M, a decrease in contract liabilities of $4.0M, a reduction in provisions of $1.6M and an increase in lease liabilities of ($0.6M).

Consolidated external debt was $313.3M at 30 June 2022 compared to $347.2M at 30 June 2021, a reduction of $33.9M.

Statement of Performance Measurement (Note G5)

Note G5 - Statement of Performance Measures, includes various indicators mandated by the Office of Local Government (OLG). The following indicators provide a ‘snap-shot’ of financial performance and comparability between Councils. The “benchmark” figures for the indicators reported represent the OLG’s benchmarks.

Local Government Industry Indicators	2022	2021	OLG Benchmark	2022 Result
Operating Performance Ratio	8.92%	(10.37%)	> 0.00%
Own Source Operating Revenue Ratio	83.02%	79.83%	> 60.00%
Unrestricted Current Ratio	1.73x	2.12x	> 1.50
Debt Service Cover Ratio	3.98x	1.44x	> 2.00x
Rates, Annual Charges, Interest Outstanding Percentage	4.75%	5.69%	< 5.00%
Cash Expense Cover Ratio	7.02 months	5.00 months	> 3 months

Operating Performance Ratio - measures how well Council contained operating expenditure within operating revenue. Council has turned the result for this ratio around in 2021-2022 via implementing its financial recovery plan and achieved over the benchmark result.

Own Source Operating Revenue Ratio - measures Council’s fiscal flexibility and the degree of reliance on external funding sources such as operating grants and contributions. Council’s performance is significantly above the benchmark in 2021-2022.

Unrestricted Current Ratio – measures the adequacy of working capital and Council’s ability to satisfy obligations in the short term for the unrestricted activities of Council. Council has achieved this benchmark in 2021-2022.

Debt Service Cover Ratio - measures the availability of operating cash to service debt including interest, principal and lease payments. Council has achieved this ratio in 2021-2022 as the operating result before capital excluding interest and depreciation adequately covered loan principal repayments and borrowing costs.

Rate and annual charges outstanding ratio - assesses the impact of uncollected rates and annual charges on Council’s liquidity and the adequacy of debt recovery efforts. Council has achieved this ratio in 2021-2022 and shown a significant improvement from the prior year that was adversely impacted by COVID 19 and relaxation of collection activities.

Cash Expense Cover Ratio - this liquidity ratio indicates the number of months a Council can continue paying for its immediate expenses without additional cash inflow. Council’s performance is significantly above the benchmark in 2021-2022.

The above ratios form part of Council’s Financial Strategy that was adopted by Council on 23 August 2022. The monitoring of the ratios within the Financial Strategy will ensure that Council remains on track to achieve a healthy financial position both in the short and long term.

Water Supply Authority (WSA) Financial Statements

Operating Result

The operating deficit before capital grants and contributions for the 2021-2022 financial year is ($6.2M). The operating surplus including capital grants and contributions of $15.9M, is a surplus of $9.7M. The operating before capital grants and contributions result in 2021-2022 shows significant improvement of $26.6M on the prior year. The operating result in 2020-2021 was adversely impacted by the organisational restructure.

	2021-2022 Actual $'000	2020-2021 Actual $'000
Income from operations	166,003	161,863
Expenditure from operations	172,170	203,338
Net operating result (excluding capital grants and contributions)	(6,167)	(41,475)
Income from capital grants and contributions	15,879	24,630
Net operating result (including capital grants and contributions)	9,712	(16,845)

The below table compares the 2021-2022 actual results to the original budget.

Income Statement	2021-2022 Actual $'000	2021-2022 Original Budget $'000	Variance to Original Budget Favourable / (Unfavourable) $'000
Income from operations	166,003	166,763	(760)
Expenditure from operations	172,170	189,734	17,564
Net operating result (excluding capital grants and contributions)	(6,167)	(22,971)	16,804
Income from capital grants and contributions	15,879	17,920	(2,041)
Net operating result (including capital grants and contributions)	9,712	(5,051)	14,763

Income from Operations

The following table reports income by category and is followed by explanations relating to variations between actual income compared to the 2021-2022 original budget.

	2021-2022 Actual $'000	2021-2022 Original Budget $'000	Variance to Original Budget Favourable / (Unfavourable) $'000	Variance to Original Budget Favourable / (Unfavourable) %
Annual Charges	85,670	84,041	1,629	1.9%
User Charges and Fees	78,136	80,670	(2,534)	(3.1%)
Interest and Investment Revenue	1,959	2,006	(47)	(2.3%)
Other Revenue	112	26	86	330.8%
Grants and Contributions - Operating	117	20	97	485.0%
Grants and Contributions - Capital	15,879	17,920	(2,041)	(11.4%)
Net Gain from disposal of assets	9	-	9	n/a
Total Income	181,882	184,683	(2,801)	(1.5%)

Annual charges

Favourable variance of $1.6M is due to additional sewer annual charges income from IPART's Clarification Notice No 1 of 2021. Council brought a clerical error in the 2019 Pricing Determination to IPART’s attention and IPART issued amendments to correct the error resulting in additional income.

User charges and fees

Unfavourable variance of ($2.5M) in water user charges as water demand was significantly lower than the previous financial year due to the amount of rainfall received during the year.

Interest and investment revenue

Interest and investment revenue is in line with budget, with no material variations to original budget.

Other revenue

Other revenue is in line with budget, with no material variations to original budget.

Grants and contributions - Operating

Grants and contributions - Operating is in line with budget, with no material variations to original budget.

Grants and contributions - Capital

The unfavourable variance of $2.0M relates to:

· Additional capital grants for water and sewer infrastructure that were approved subsequent to the adoption of the original budget $4.4M

· Additional income was also received and donated, and developer contributed assets that were not included in the original budget forecast $0.2M

· This was partially offset by lower than anticipated developer contributions received ($6.6M).

Net Gain from disposal of assets

No material transactions in this category in 2021-2022, a small disposal of a land asset.

Expenditure from Operations

The following table reports expenditure by category and is followed by explanations relating to variations between actual expenses compared to the 2021-2022 original budget.

Expenditure from Operations	2021-2022 Actual $'000	2021-2022 Original Budget $'000	Variance to Original Budget Favourable / (Unfavourable) $'000	Variance to Original Budget Favourable / (Unfavourable) %
Employee benefits and on-costs	27,242	28,780	1,538	5.3%
Borrowing costs	10,489	10,870	381	3.5%
Materials and services	56,794	64,862	8,068	12.4%
Depreciation and amortisation	74,543	85,222	10,679	12.5%
Other expenses	3,102	-	(3,102)	n/a
Total Expenditure	172,170	189,734	17,564	9.3%

Employee costs

Favourable variance of $1.5M is primarily due to vacant positions across the WSA. In the current economic climate Council is experiencing difficulties filling vacant positions

Borrowing costs

Favourable variance of $0.4M is due to sewer fund loans that were repaid in April 2021, however budgets had been included for them in the original budget 2021-22. In addition, further sewer fund loans were repaid and not refinanced as expected in March 2022 and the water fund loans that were refinanced achieved lower interest rates than forecast.

Materials and contracts

Favourable variance of $8.1M is attributable to:

· Favourable variance in corporate overheads allocated to WSA $3.5M

· Favourable variance in internal expenses allocated to WSA $2.9M

· Favourable variance in general Materials and Services expenditure of $1.6M.

Depreciation

Favourable variance $10.7M is mostly due to a reduction in depreciation expense in line with the revaluation of WSA asset classes in 2020-2021 and reduced capital expenditure that resulted in fewer projects being capitalised and depreciated in FY22.

Other expenses

The unfavourable variance of ($3.1M) is due to the recognition of unrealised market value movements in tradeable floating rate notes and bond investments ($3.1M).

Statement of Financial Position

For the movement between financial years a positive movement means that the values have increased from 30 June 2021 to 30 June 2022.

Statement of Financial Position	30 June 2022 $'000	30 June 2021 $'000	Movement $'000
Assets
Current Assets	108,975	93,386	15,589
Non-Current Assets*	3,856,781	3,865,149	(8,368)
Total Assets	3,965,756	3,958,535	(7,221)
Liabilities
Current Liabilities	68,289	82,860	14,571
Non-Current Liabilities	171,605	180,584	8,979
Total Liabilities	239,894	263,444	23,550

Net Equity	3,725,862	3,695,091	30,771

* Subject to change following inclusion of water and sewer asset revaluation adjustment

Current assets

Current assets increased by $15.6M due to an increase of $9.2M in current cash and cash equivalents and investments due mainly to underspend on capex and operating expenses and an increase in current receivables of $6.5M.

Non-current assets

Non-current assets decreased by ($8.4M) due to a reduction in infrastructure, property, plant and equipment of ($6.7M) as depreciation, impairments and asset disposals were greater than asset additions in 2021-2022 and ($1.7M) impairment of drainage easement intangible assets.

WSA’s overall cash and investment portfolio as at 30 June 2022 totalled $150.3M compared to $141.1M at 30 June 2021 an increase of $9.2M.

Current Liabilities

Current liabilities decreased by $14.6M due to a reduction in borrowings of $14.3M and a reduction in contract liabilities of $2.1M partially offset by an increase in payables of ($1.7M).

Non-Current Liabilities

Non-current liabilities decreased by $9.0M due to reduction in borrowings of $10.6M and a reduction in provisions of $0.7M partially offset by an increase in contract liabilities of ($2.3M).

WSA debt was $207.1M at 30 June 2022 compared to $232.0M at 30 June 2021 a reduction of $24.9M.

Consultation

All areas of Council contribute to the information contained within the draft 2021-2022 Financial Reports.

The draft 2021-2022 Financial Reports for Central Coast Council and Central Coast Council Water Supply Authority were tabled at the 14 September 2022 Audit, Risk and Improvement Committee for their comment and consideration.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

The following statement is provided in response to this resolution of Council.

The audit of Council’s General Purpose financial report, Special Purpose financial report, Special Schedules and Council’s Water Supply Authority financial report will be undertaken by the Audit Office at an agreed engagement fee which is included in Council’s budget.

Link to Community Strategic Plan

Theme 4: Responsible

Goal G: Good governance and great partnerships

Risk Management

Council has worked with the Audit Office of New South Wales to meet our legislative reporting requirements.

The Financial Statements are audited by the Audit Office of New South Wales who, amongst other things, form an opinion on the Financial Statements whether:

· The Council’s accounting records have been kept in accordance with the requirements of the Local Government Act 1993, Chapter 13, Part 3 Division 2; and

The Financial Statements:

· Have been prepared, in all material respects, in accordance with the requirements of this Division

· Are consistent with the Council’s accounting records

· Present fairly, in all material respects, the financial position of the Council as at 30 June 2022, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards

· All information relevant to the conduct of the audit has been obtained

· No material deficiencies in the accounting records or Financial Statements have come to light during the audit.

Options

The referral of the draft 2021-2022 Financial Reports to audit is a legislative requirement.

Critical Dates or Timeframes

Council must refer the draft 2021-2022 Financial Reports before the External Auditor will provide their formal opinion to enable Council to lodge the 2021-2022 Financial Reports for Central Coast Council with the Office of Local Government by 31 October 2022.

Attachments

1 ⇨	Draft Central Coast Council General Purpose Financial Statements 2021-2022	Provided Under Separate Cover	D15335139
2 ⇨	Draft Central Coast Council Special Purpose Financial Statements 2021-2022	Provided Under Separate Cover	D15335144
3 ⇨	Draft Central Coast Council Special Schedules 2021-2022	Provided Under Separate Cover	D15335143
4 ⇨	Draft Central Coast Council Water Supply Authority Financial Statements 2021-2022	Provided Under Separate Cover	D15335142

Item No: 2.4
Title: Gosford Waterfront Concept Plan
Department: Environment and Planning
27 September 2022 Ordinary Council Meeting

Reference: CPA/3261 - D15303264

Author: Ben Brown, Property Development Manager

Manager: Jamie Barclay, Unit Manager Economic Development and Property

Executive: Alice Howe, Director Environment and Planning

Recommendation

That Council:

1 Adopt Option 1 (Attachment 1) as the preferred Gosford Waterfront and Stadium Concept Plan on which to develop a draft Waterfront Masterplan .

2 Adopt the revised Gosford Waterfront Renewal Framework (Attachment 2) to progress feasibility analysis of the waterfront revitalisation proposal.

3 Seek community feedback to inform development of a draft Waterfront Masterplan, based on the adopted Gosford Waterfront and Stadium Concept Plan.

4 Seek funding from the NSW Government to progress a business case for the adopted Gosford Waterfront and Stadium Concept Plan to inform a potential NSW Government investment decision.

Report purpose

This report seeks a resolution of Council to progress work to support revitalisation of the Gosford Waterfront.

Executive Summary

The time is right to revitalise Gosford as an iconic waterfront city. To do so, requires reimagining Gosford’s waterfront as a place that welcomes visitors to the region, delivers greater connectivity, attracts culturally significant events, and enhances liveability.

Work has been completed on a strategic options assessment, as detailed in the Gosford Waterfront Renewal Framework (Attachment 2), of three distinct concept options. Based on extensive analysis of the three options, it is proposed that Option 1 be adopted as the preferred concept. This Gosford Waterfront and Stadium Concept Plan (Figures 1 and 2 and Attachment 1) provides for an enhanced public domain, as well as new homes, employment opportunities and entertainment activities.

The next stage of the proposal is to seek community input into the development of a draft Waterfront Masterplan and to seek NSW Government support to undertake a detailed business case for the Gosford Waterfront and Stadium Concept Plan.

Figure 1 – Preferred Gosford Waterfront Concept Design North View (yellow outlines show approved and not yet constructed private development)

Figure 2 – Preferred Gosford Waterfront Concept Design South View

Background

Gosford has the potential to be a great waterfront city that is resilient, connected, vibrant and where local identity is showcased.

The Central Coast Regional Plan 2036 identifies Gosford as the region’s Principal City, with a key priority to undertake and integrate precinct planning for the waterfront, arts and entertainment, city core, railway and hospital precinct.

Gosford has also recently been identified as one of the six cities to form NSW’s growth corridor, as part of the Greater Cities Plan. The six cities vision is to accelerate the economic growth of this megalopolis to create a globally competitive region that has the scale to provide better jobs, housing, education, health and lifestyle opportunities for everyone.

Gosford is the chosen city for the proposed new university and TAFE campuses in Mann Street, upgrades and new management of Central Coast Stadium, development of the regional library, and the NSW Government’s faster train proposal. There are also a number of private major mixed-use developments projects that have been approved in Gosford, which will inject significant investment in the city centre.

Gosford Waterfront is a critical component in the revitalisation and renewal of Gosford. Over the last 20 years, many proposals have been put forward to embrace the Gosford Waterfront’s potential. More recently, several local and state government strategic documents have identified the Gosford Waterfront as having significant potential as a regional attractor and providing additional key public open infrastructure. These include:

· The NSW Government’s Gosford Urban Development Framework (2018);

· Council’s Interim Local Strategic Planning Statement (2020);

· Council’s Economic Development Strategy (2020);

· Council’s Somersby to Erina Growth Corridor (Southern Growth Corridor) (2019);

· The Gosford City State Environmental Planning Policy (2018) and associated Development Control Plan (2018); and

· Council’s Our City Our Destiny - Gosford City Centre Masterplan (2010).

To progress revitalisation of the Gosford Waterfront, Council officers undertook preliminary due diligence on a range of proposals received over the last decade. A summary of the current constraints and potential opportunities was prepared, which resulted in identification of three options based on the previous Masterplan. On 27 April 2021, Council resolved to proceed to assess these three distinct options for the Gosford Waterfront:

132/21 Resolved

1 That Council adopts the proposed Waterfront Renewal Framework for the Gosford Waterfront, ensuring the execution and delivery of various opportunities which have been identified in previous proposals and current local and state government documents.

2 That Council leads this development renewal initiative via the Gateway phases as outlined in the Waterfront Renewal Framework.

3 That the Chief Executive Officer engages with relevant stakeholders such as the Greater Sydney Commission, Government Departments and other relevant stakeholders.

4 That Council negotiates where applicable any aboriginal land claims or crown land leases or licenses.

5 That Council, based on previous Masterplans, prepares three options for renewal of the Gosford Waterfront accompanied by further financial assessment to assure proof of concept. This would occur in consultation with relevant specialist consultants outlined in this report.

6 That Council stage the execution and delivery of those various opportunities that have been identified in previous proposals and current local and state government documents to achieve optimal development outcomes.

7 That Council, based on the preferred option, lodge a Planning Proposal to amend the SEPP zoning categorisation which will amend the current land use, permitted building heights and FSR.

8 That Council issues an Expression of Interest to private partners, exploring potential development sites along the Waterfront once a detailed business case has been completed.

Report

A concise framework to progress revitalisation of the Gosford Waterfront was developed and resolved by Council in April 2021. An updated version of this framework is provided in Attachment 2. This framework aligns with the NSW Government’s Urban Development Framework and supports collaboration with the NSW Government and other key stakeholders to progress the proposal.

The three distinct options identified for the Gosford Waterfront have the following elements:

Option 1- Focuses on providing a diverse range of land uses (including residential properties) and expands public domain areas, reaching a supply/ demand equilibrium around 2036.

Option 2- Has a focus on job creation and tourism, with a small number of residential properties to activate the precinct.

Option 3- Focuses on uses that particularly relate to job creation and tourism (excluding residential).

Considerations and Option Selection

Several key criteria were considered when assessing all three options during the strategic options assessment (Gateway 1 in Attachment 2). These considerations included:

(a) Social

All three options were assessed against relevant state and local strategic themes and objectives as shown in Table 1.

Options 1 and 2 provided residential housing, and importantly housing diversity, to the Gosford City Centre. Both options also provide an increase in public open space and infrastructure, with an overall improvement in the amenity of the precinct.

Residential housing benefits the night and day economy, safety, activation, and the ability for the other uses, most importantly retail to survive and thrive. Based on Option 1 providing a larger component of residential housing stock, it is deemed the superior option in relation to the overall improved social impact.

Table 1 – Analysis of strategic themes and objectives

(b) Financial

(i) Public Investment

Public and private investment is crucial for a project of this size and nature to be a success. Table 2 provides a summary of the various public financial benefits analysed.

Option 1 has several benefits over the other two options, including:

· Greater benefit to cost ratio;

· Greater amount of construction jobs;

· Higher value for the construction output produced; and

· Higher indicative land value.

All three options exceeded the benefit / cost ratio of 1:1 required for NSW Government investment. The main contributing factor for Option 1 having the greater public financial benefits in the above areas is the amount of residential housing stock provided and its associated compounding effects.

Table 2 – Public financial benefit

Description	Option 1	Option 2	Option 3
Benefit/Cost Ratio	1.70:1	1.41:1	1.59:1
Construction Jobs	4,891	3,816	2,876
Ongoing Jobs	769	769	769
Total Construction Output	$451,570,000	$351,310,000	$265,550,000
Indicative Land Value	$21,000,000	$10,000,000	$7,000,000

(ii) Private Investment

Private investment is an essential component to any successful development outcome of this scale and complexity. Utilising comparable property metric benchmarks located within Gosford City and applying a sensitivity analysis, Option 1 produces the greatest net profit. It can be concluded that from a Private Investment viewpoint, Option 1 would be the most attractive proposition.

Table 3 – Private financial performance

OPTION 1
Description	Metric
Total Revenue	$469,683,581
Total Expenditure	$367,886,989
Net Profit	$101,796,592
OPTION 2
Description	Metric
Total Revenue	$253,543,286
Total Expenditure	$197,597,370
Net Profit	$55,945,916
OPTION 3
Description	Metric
Total Revenue	$144,754,131
Total Expenditure	$115,095,616
Net Profit	$29,658,515

When both public and private Investment are considered, Option 1 (Figures 1 and 2 and Attachment 1) is the most superior option and has the greatest chance of being delivered by both government and private investors.

Consultation

Stakeholder consultation as noted in resolution 132/21 (3) has progressively taken place over the last several months. To date, feedback to the preferred option has been positive.

It is proposed to undertake detailed community engagement over the coming months to inform development of a draft Waterfront Masterplan. This feedback will also inform the development of a business case, subject to funding from the NSW Government, to progress the project to an investment decision.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

The following statement is provided in response to this resolution of Council.

It is not proposed that Council would invest significant funding to deliver the Waterfront revitalisation proposal. Rather, Council seeks support from the NSW Government to progress the project to Gateway 2 (see Attachment 2), which is to develop a business case to inform a NSW Government investment decision. The funding required to progress to this stage is $8.5m. It is anticipated these funds will enable adequate design (25%-30%) to take place, which will ratify assumptions and de-risk the project.

Funds to undertake community consultation on the preferred concept to inform development of a draft Waterfront Masterplan are included in Council’s adopted 2022-2023 budget.

Link to Community Strategic Plan

Theme 2: Smart

Goal C: A growing and competitive region

S-C2: Revitalise Gosford City Centre, Gosford Waterfront and town centres as key destinations and attractors for business, local residents, visitors and tourists.

Risk Management

The Gosford Waterfront Renewal Framework identifies Review Deliverables as the step prior to progression to the next Gateway. Council officers have completed these Review Deliverables for Gateway 1 and are satisfied the preferred option addresses the relevant hurdles. Overall, the analysis undertaken to date identifies that the proof of concept is satisfactory to allow progression to the next project gateway (Gateway 2).

The scale of the proposal is beyond that which could be successfully delivered by Council. Once the business case has been prepared to confirm the viability of the proposal, it is recommended that delivery of the proposal be undertaken by an appropriate NSW Government development corporation, as was the case for Honeysuckle in Newcastle and Barangaroo in Sydney.

Options

Option 1: That Council adopts Option 1 as its preferred concept for revitalization of the Gosford Waterfont, commences community engagement to inform development of a draft Gosford Waterfront Masterplan and seeks funding to proceeds to Gateway 2 ‘Business Case’. This is the recommended option.

Option 2: That Council adopts either Option 2 or Option 3 as its preferred concept. This is not recommended as the strategic options assessment identified these as inferior to Option 1.

Option 3: That Council does not progress efforts to revitalize the Gosford Waterfront. This option is not recommended as it would not allow progress to be made towards re-imagining Gosford as an iconic waterfront city.

Attachments

1 ⇨	Gosford Waterfront and Stadium Concept Plan	Provided Under Separate Cover	D15343986
2 ⇨	Gosford Waterfront Renewal Framework	Provided Under Separate Cover	D15303311

Item No: 2.5
Title: Planning Proposal RZ/3/2019 - 45 Mulloway Road, Chain Valley Bay - Results of Community Consultation
Department: Environment and Planning
27 September 2022 Ordinary Council Meeting

Reference: F2020/00039 - D15095295

Author: Rodney Mergan, Senior Strategic Planner, Local Planning and Policy

Manager: Scott Duncan, Section Manager Local Planning and Policy

David Milliken, Unit Manager Strategic Planning

Executive: Alice Howe, Director Environment and Planning

Recommendation

1 That Council endorse the Planning Proposal for Lot 5 DP 1228880 (45 Mulloway Road Chain Valley Bay).

2 That Council request the Chief Executive Officer to exercise delegation issued by the Department of Planning and Environment for RZ/3/2019 or if required request the Minister for Planning to proceed with the steps for drafting and making of the amendment to Central Coast Local Environmental Plan.

3 That Council request the Chief Executive Officer exercise his Delegation to execute the draft Planning Agreement endorsed by the proponent and landowner, prior to the finalisation of the rezoning.

4 That Council adopt the site-specific Central Coast Development Control Plan 2022 Chapter – 45 Mulloway Road, Chain Valley Bay, as publicly exhibited.

5 That Council endorse the amendments recommended by Council staff being:

· The addition of Lot 5 DP 1228880 to the Central Coast LEP 2022 Urban Release Area (URA) map as requested by the Department of Planning and Environment.

· The minor realignment of the boundary between the C2 Environmental Conservation and RE2 Private Recreation as per the Biodiversity Certification for the site as endorsed by the NSW Government Biodiversity Certification Division (BCD).

6 That Council consider the submissions received during the exhibition period, as outlined in this report.

7 That Council advise all those who made a submission of the decision.

Report purpose

To consider the Planning Proposal for Lot 5 DP 1228880 (45 Mulloway Road Chain Valley Bay) following public exhibition and seek endorsement for the Planning Proposal through Central Coast Local Environmental Plan (CCLEP) 2022.

Executive Summary

Council previously resolved to prepare a Planning Proposal to rezone Lot 5 DP 1228880 (45 Mulloway Road Chain Valley Bay) from C3 Environmental Management to:

· part RE2 Recreation to allow for the development of a Manufactured Home Estate (MHE);

· part R2 Low Density Residential to allow for low density residential development; and

· part C2 Environmental Conservation to preserve significant vegetation and wildlife corridor.

In addition to amending the CCLEP 2022 mapping to reflect the zoning changes in this Planning Proposal, a change to the minimum lot size mapping for R2 zoned land to 450m² is proposed. For the RE2 and C2 zoned land it is proposed that the current 40 Ha minimum lot size is proposed to be retained.

The site is also to be identified on the Urban Release Area map of CCLEP 2022 thus triggering Part 6 of CCLEP 2022 regarding the need for satisfactory arrangements to be in place with NSW Government agencies prior to development consent for any subdivision of the land being granted.

This report provides an overview of the outcome of public agency and community feedback received following public exhibition.

Based on the community and NSW Government agency consultation and Council staff review, it is recommended that Council endorse the Planning Proposal through an amendment to CCLEP 2022.

Background

On 27 April 2020 Council resolved the following:

288/20 That Council, pursuant to Section 3.33 of the Environmental Planning and Assessment Act, 1979, prepare a Planning Proposal applying to Lot 5 DP 1228880 (45 Mulloway Road, Chain Valley Bay) to rezone the subject sites from E3 Environmental Management to RE2 Private Recreation and E2 Environmental Conservation by amending the Wyong Local Environmental Plan 2013 (or Central Coast Local Environmental Plan), whichever is in effect at the time.

289/20 That Council, pursuant to Section 3.34 of the Environmental Planning and Assessment Act, 1979, forward the Planning Proposal to the Minister requesting a Gateway Determination.

290/20 That Council request delegation for Council to finalise and make the draft Local Environmental Plan, pursuant to Section 3.36 of the Environmental Planning and Assessment Act 1979.

291/20 That Council undertakes public authority and community consultation in accordance with the Gateway Determination requirements.

292/20 That Council authorise staff to negotiate, prepare and exhibit a Planning Agreement with respect to any aspect of the proposal to support the development of the subject land.

293/20 That Council authorise staff to prepare and exhibit site specific development controls with respect to any aspect of the proposal to support the development of the subject land.

294/20 That Council consider a further report on the results of public authority and community consultation.

295/20 That Council notes the need for Roads and Maritime Services to upgrade the intersection of Pacific Highway and Chain Valley Road.

A Gateway Determination was issued by the Department of Planning and Environment (DPE) on 28 July 2020. However, in response to ongoing negotiations with the landowner, the Applicant requested an amendment to the proposal to reduce the area for the proposed Manufactured Home Estate (MHE)and introduce a section of R2 Low Density Residential land into the proposal. Subsequently on 17 February 2021 Council resolved:

15/21 Resolved

1 That the Planning Proposal endorsed under Resolutions 288/20 to 295/20 be modified to rezone the subject sites from E3 Environmental Management to RE2 Private Recreation, E2 Environmental Conservation and R2 Low Density Residential by amending the Wyong Local Environmental Plan 2013 (or Central Coast Local Environmental Plan), whichever is in effect at the time.

2 That Council request an amendment to the current Gateway Determination from the Department of Planning, Industry and Environment (DPIE) to include the R2 Low Density Residential Zone.

It is noted that since the time the above was considered by Council the NSW Government has introduced a new system for referencing environmental zones, the E2 Environmental Conservation zone is now shown as C2 Environmental Conservation and the E3 Environmental Management zone is now known as the C3 Environmental Management zone.

Current Status

The Planning Proposal is currently near the end of the Local Environmental Plan Amendment Process (see Figure 1).

Figure 1 – Local Environmental Plan Amendment Process

Report

The subject site (Figure 2) is described as Lot 5 DP 1228880, 45 Mulloway Road Chain Valley Bay.

The land is currently zoned C3 Environmental Management under CCLEP 2022 (Figure 3). The site has an area of 10.61 Hectares (Ha) and can be divided into three distinct areas:

· dwelling and ancillary development to the north of the site;

· generally cleared area predominately used for rural purposes through the majority and centre of the site; and

· heavily vegetated area along the southern boundary of the site.

Surrounding land uses include:

· a Manufactured Home Estate (MHE) to the west,

· State Recreation Area to the north,

· vacant vegetated land to the east and south currently subject to a Planning Proposal (PP_2017 CCOAS_003_02) for residential development and ongoing conservation.

Figure 2 Locality Plan

It is proposed to rezone the land from the C3 Environmental Management Zone to part RE2 Private Recreation to allow for the development of an MHE, part R2 Low Density Residential to allow for low density residential development and part C2 Environmental Conservation to preserve significant vegetation and retain a wildlife corridor (Figure 4).

It is proposed to retain the current minimum lot size for the site of 40Ha for the land to be zoned RE2 and C2, with the R2 land having a minimum lot size of 450m².

Concurrent Exhibition of Other Planning Controls

Pursuant to Council Resolution 293/2020, a draft Development Control Plan Chapter was publicly exhibited with the Planning Proposal. The draft DCP Chapter (Attachment 1) provides additional guidance for the development of the site beyond the generic controls of Central Coast Development Control Plan 2022 (CDCP 2022) with regard to site development, relationship to surrounding sites and the protection of the environmental land at the south of the site.

Figure 3 Existing Land Use Zones

Figure 4 Proposed Land Use Zones as Publicly Exhibited

Consultation

Internal Consultation

Internal consultation has been undertaken as summarised below:

Local Infrastructure and Planning

Council Resolution 292/20 authorised staff to “negotiate, prepare and exhibit a Planning Agreement with respect to any aspect of the proposal to support the development of the subject land.”

Under the North Wyong Shire Structure Plan (NWSSP) staging of the development within this area falls within the long-range timeframe (land will not be zoned before 15 years). Given the long-term timeframe under the NWSSP, lodgement the Planning Proposal preceded Council’s Strategic Planning for the development of this area. However, under the NWSSP it is acknowledged that the release of the land can be accelerated, subject to appropriate funding arrangements being put in place to manage infrastructure and servicing issues associated with increasing the population in the locality.

DPE has identified that the provisions of the NWSSP will be integrated into Central Coast Regional Plan 2041 (CCRP 2041) with priority now given to translating these plans into new homes and workplaces. It is therefore considered that the proposal is consistent with the NWSSP and will be consistent with the CCRP 2041.

As proposed development for the entire area has accelerated significantly in recent times, in addition to accelerating the development of the Greater Lake Munmorah Structure Plan, the review of the Northern Districts Section 7.11 Contributions Plan has also been accelerated within Council’s work program.

As this Contributions Plan has not yet been finalised, agreement was reached with the proponent for the public exhibition and adoption of a Planning Agreement reflecting the contributions per lot that will be required under the revised Contributions Plan.

Environmental Planning

Clearing of vegetation would be required to facilitate the proposed development of the site for a MHE and low-density residential development.

While vegetation removal would generally occur as part of a development application process that would follow the completion of the Planning Proposal, Council must be satisfied that the proposal can reasonably meet the requirements of State Environmental Planning Policy (Biodiversity and Conservation) 2021 and the Biodiversity Conservation Act 2016.

An ecological constraints report submitted in support of the application indicates that the proposal seeks to impact on approximately 0.32 ha of Swamp Sclerophyll Forest Ecologically Endangered Community (EEC) and 0.92 ha of Narrabeen Doyalson Coastal Woodland. The vegetated southern end of the site is highlighted on the Biodiversity Values map published by the former NSW Office of Environment and Heritage. The proposal triggers entry into the Biodiversity Offset Scheme (BOS) through potentially impacting areas highlighted on the Biodiversity Values map and exceeding the area clearing threshold.

The site is partially nominated as a green corridor and habitat network under the NWSSP. The portion of the site proposed to be zoned C2 Environmental Conservation closely aligns with the boundary of the green corridor.

To address the requirements of State Environmental Planning Policy (Biodiversity and Conservation) 2021 and the Biodiversity Conservation Act 2016, a draft Biodiversity Certification Assessment Report (BCAR) for Lot 5 DP 1228880 has been prepared by Travers Bushfire and Ecology in support of the proposal.

The intent of this report is to confirm the offsetting requirements for the potential vegetation loss mentioned above and establish agreed requirements for the ongoing preservation of the environmental corridor land, proposed to be zoned C2 Environmental Conservation.

As part of the process Council reviews and provides comments in relation to the BCAR. The BCAR was approved for public exhibition by DPE’s Biodiversity and Conservation Division (BCD) and publicly exhibited from 5 May to 6 June 2022. No submissions were received in response to this public exhibition process.

The BCAR process has resulted in a minor realignment of the C2/RE2 zone boundary marginally extending the area of C2 land to be preserved as shown in Figure 5. It is recommended that Council resolve to realign this boundary as per Figure 5.

Figure 5 Proposed Land Use Zones as per the Biodiversity Certification with E2/C2 and RE2 boundary refined

Environment and Health

A Phase 1 Preliminary Contaminated Lands Assessment for the site has been undertaken by a suitably qualified geotechnical engineer to demonstrate compliance with the requirements of SEPP Resilience and Hazards 2021. The findings of this contamination assessment recommends that a detailed contamination assessment be undertaken with remedial actions, where necessary. It has been determined that if all “Areas of Concern” are addressed the land can be remediated to a suitable condition for residential use.

Transport Planning

The need for an intersection upgrade at Pacific Highway and Chain Valley Bay Road has been identified along with the need for either a review of the Northern Districts Contributions Plan or a Voluntary Planning Agreement to adequately cater for local road and other infrastructure upgrades. The Classified (State) road intersection upgrade is further discussed under Government Agency Consultation.

Water and Sewer

The site is located within the existing pump station catchment with both the residential subdivision and MHE development required to discharge into the existing Council gravity sewer line. Water and Sewer has acknowledged the need to amplify the existing infrastructure to suit the growth within the catchment.

Floodplain Management

Draft Flood Mapping for Lake Macquarie identifies that the limit of the Probable Maximum Flood (PMF) generally aligns with land proposed to be preserved under the C2 zoning with some potential minor flooding or potential pooling along the western boundary of the site.

The Applicant has revised the proposed internal layout of the MHE which eliminates residential or other structures from the areas where the minor flooding may occur.

Government Agency Consultation

Darkinjung Local Aboriginal Land Council (DLALC)

DLALC indicated that it did not wish to provide any comment on the Planning Proposal.

Guringai Tribal Link (GTL)

GTL initially objected to the Planning Proposal but following further consultation were satisfied potentially significant land was to remain undisturbed.

Rural Fire Service (RFS)

RFS raised no objection subject to future development applications complying with Planning for Bushfire Protection (2019).

Subsidence Advisory NSW (SA NSW)

SA NSW indicated that it is unlikely that future mining will adversely impact residential development and indicated no objection to the proposal with future development and subdivision applications will be assessed in accordance with current policies at the time.

Transport for NSW (TfNSW)

In addition to the local infrastructure issues, additional development in the area will also require an upgrade to the intersection of Chain Valley Bay Road and the Pacific Highway. TfNSW has indicated that no additional development in the area will be approved until this intersection is suitably upgraded. This requires satisfactory arrangements to be in place between developers and TfNSW to fund these works.

TfNSW and the Applicant are in the process of ensuring satisfactory arrangements are in place regarding the funding and completion of this intersection.

This outstanding issue does not affect the completion of this Planning Proposal as DPE has requested the site to be identified on the Urban Release Area map of CCLEP 2022 thus triggering Part 6 of CCLEP 2022 regarding the need for satisfactory arrangements to be in place with NSW Government agencies prior to development consent for any subdivision of land being granted.

Community Consultation- Planning Proposal

The Planning Proposal and other relevant supporting documentation were exhibited between 6 December 2021 and 25 January 2022.

Two submissions were received during the exhibition period and identified the following issues and questions:

1 Will an upgrade of the intersection of Chain Valley Bay Road and Pacific Highway be undertaken to accommodate the extra traffic generated by the development?

The need for the upgrade of the Chain Valley Bay and Pacific Highway intersection has been identified as a critical issue by both Council and TfNSW to be dealt with prior to any intensification of development in the area. TfNSW and the Applicant are in the process of ensuring satisfactory arrangements are in place before development occurs.

This outstanding issue does not affect the completion of this Planning Proposal as the site is to be identified on the Urban Release Area map of CCLEP 2022 thus triggering Part 6 of CCLEP 2022 regarding the need for satisfactory arrangements to be in place with NSW Government agencies, as mentioned above.

2 What will be the requirements to install solar power on the dwellings to minimise additional load on the power network?

There are no specific requirements to provide solar power for dwellings. The proponent for the MHE development has indicted that they will be providing solar panels to each of the homes and the clubhouse.

Residential development on the proposed R2 Low Density Residential Land will be subject to SEPP BASIX requirements including energy efficiency.

3 What will be the requirements for tree planting to assist the environment and allow for larger trees growth to assist in minimising the impact of bare surfaces which are causing additional heating of the environment, as demonstrated in Western Sydney? If lot sizes are too small they cannot accommodate larger species of trees.

The general residential component of the development will have a minimum lot size of 450m² and any subdivision will need to be accompanied by a landscape plan.

The MHE development will be in accordance with the provisions of the SEPP Housing and will also need to be supported by a landscape plan.

It is noted that the land to be developed is generally cleared of significant vegetation for historical rural use and the proposal will retain the significant vegetation on the site through the bio-certification process.

4 What will be the minimum percentage soft landscaping requirements for the lots? Soft landscaping together with tree growth can assist the environment considerably.

In accordance with Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2021, the minimum open space requirement for MHE home sites is 30m². The Applicant has advised that all sites will be provided with landscaping and tree planting which will be assessed during the development application phase.

Community Consultation- Planning Agreement

The Planning Agreement was exhibited, separately to the Planning Proposal, between 22 July and 5pm 19 August 2022. No submissions were received,

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

The following statement is provided in response to this resolution of Council.

The direct cost to Council is the preparation and finalisation of the Planning Proposal, which will be charged as per Council’s Fees and Charges on a cost recovery basis. This will have no impact on Council’s budget bottom line.

Council levies development contribution where additional infrastructure is required for the growing population. This may include local roads, stormwater and drainage, shared pathways, parks, and community facilities. Development contributions in accordance with the following contribution plans apply to the site:

· Northern Districts Development Contributions Plan.

· Shirewide Infrastructure, Services and Facilities Development Contribution Plan.

Note that as the Northern Districts Development Contributions Plan is currently being reviewed and revised. In the interim period, a Planning Agreement has been prepared and publicly exhibited, reflecting the contributions per lot that will be required under the revised Northern Districts Development Contributions Plan.

Link to Community Strategic Plan

Theme 2: Smart

Goal C: A growing and competitive region

S-C3: Facilitate economic development to increase local employment opportunities and provide a range of jobs for all residents.

Theme 3: Green

Goal F: Cherished and protected natural beauty

G-F1: Protect our rich environmental heritage by conserving beaches, waterways, bushland, wildlife corridors and inland areas, and the diversity of local native species.

Theme 4: Responsible

Goal I: Balanced and sustainable development

R-I1: Preserve local character and protect our heritage and rural areas including concentration of development along transport corridors and around town centres and east of the M1.

Goal I: Balanced and sustainable development

R-I2: Ensure all new developments are well planned with good access to public transport, green space and community facilities and support active transport.

Goal I: Balanced and sustainable development

R-I3: Ensure land use planning and development is sustainable and environmentally sound and considers the importance of local habitat, green corridors, energy efficiency and stormwater management.

Goal I: Balanced and sustainable development

R-I4: Provide a range of housing options to meet the diverse and changing needs of the community and there is adequate affordable housing.

Risk Management

Rezoning of land is a core function of Council and does not introduce new organisational risks.

Potential risks to the natural and built environment associated with the proposed amendment to CCLEP 2022 were considered as part of the development of the Planning Proposal and are addressed through the positioning of zones and the Planning Agreement for infrastructure. Further analysis of risks and appropriate risk management measures will be undertaken at the development assessment stage.

Options

1 Endorse the Planning Proposal. The Planning Proposal is considered to have strategic merit, it has received a Gateway Determination and there are no public objections.

This is the recommended option.

2 Refuse the finalisation of the Planning Proposal. The Planning Proposal has been assessed on its merit and is deemed to be a suitable proposal. In Council staff opinion there is no reason why it should be refused. Not recommended.

3 Await completion of Northern Districts Development Contributions Plan.

A Planning Agreement has been prepared and exhibited, which references the same figures as currently proposed within the revised draft Northern Districts Contributions Plan. Not recommended

Attachments

1 ⇨

Draft Chapter XX Chain Valley Bay - 45 Mulloway Road - RZ/3/2019

Provided Under Separate Cover

D15322886

Item No: 2.6
Title: Planning Proposal RZ/1/2017 - 15 Mulloway Road, Chain Valley Bay - Results of Community Consultation
Department: Environment and Planning
27 September 2022 Ordinary Council Meeting

Trim Reference: RZ/1/2017 - D13744927

Author: Kathryn Heintz, Principal Strategic Planner, Local Planning and Policy

Manager: Scott Duncan, Section Manager Local Planning and Policy

David Milliken, Unit Manager Strategic Planning

Executive: Alice Howe, Director Environment and Planning

Recommendation

1 That Council amend the Planning Proposal for 15 Mulloway Road, Chain Valley Bay as exhibited in response to issues raised during exhibition, as follows:

a. Amend the Land Zoning Map from RE1 Public Recreation zone to C2 Environmental Conservation zone for the narrow strip of land along the western boundary of the site previously proposed as a shared pathway as the shared pathway is no longer required in this location.

2 That Council endorse the Planning Proposal for 15 Mulloway Road, Chain Valley Bay and forward it to the Department of Planning and Environment to make the plan.

3 That Council request the Chief Executive Officer exercise his Delegation to execute the draft Planning Agreement endorsed by the landowner on 12 July 2022, prior to finalisation of the rezoning.

4 That Council amend the site-specific Central Coast Development Control Plan 2022 Chapter – 15 Mulloway Road, Chain Valley Bay (as exhibited) in response to issues raised in submissions, as follows:

a. Amend road types in Figure 3: Indicative road layout and hierarchy and Appendix A Roads and Intersections, to reduce parking lane from 2.3m to 2.1m as follows:

i. Bus Route Road (Type 1)

ii. Local Street (Type 2)

b. Include additional road types to Figure 3: Indicative road layout and hierarchy and Appendix A Roads and Intersections, as follows:

i. Bushfire Perimeter (Type 3)

ii. Access Lane (Type 4)

iii. Entry Road (Type 5)

c. Remove requirement for a shared pathway along the western boundary of the site due to the identification of private ownership issues and a lack of passive surveillance. Shared pathway on Bus Route Road (Type 1) to be retained.

d. Addition of a section on infrastructure provision to ensure that the development application for any subdivision is to be supported by the agreement of Transport for NSW that satisfactory arrangements are in place for the upgrade of the intersection of Pacific Highway and Chain Valley Bay Road.

5 That Council adopt the site-specific Central Coast Development Control Plan 2022 Chapter – 15 Mulloway Road, Chain Valley Bay (as outlined in Attachment 1), which shall come into effect upon notification of the plan.

6 That Council publish a public notice of its decision regarding the adoption of the Development Control Plan within 28 days.

7 That Council provide the Planning Secretary with a copy of the Development Control Plan within 28 days.

8 That Council consider the submissions received during the exhibition period, as outlined in this report.

9 That Council advise all those who made a submission of the decision.

Report purpose

To consider the Planning Proposal for Lot 273 DP755266 (15 Mulloway Road, Chain Valley Bay) following public exhibition, and seek endorsement for the Planning Proposal through the Central Coast Local Environmental Plan 2022 (CCLEP 2022).

Executive Summary

Council previously resolved to prepare a Planning Proposal to rezone Lot 273 DP755266 (15 Mulloway Road, Chain Valley Bay) from part C2 Environmental Conservation and part C3 Environmental Management to:

· part R2 Low Density Residential to enable a low-density residential development;

· part C2 Environmental Conservation to preserve significant vegetation and wildlife corridors; and

· part C3 Environmental Management to enable a large-lot residential allotment.

In addition to the changes to CCLEP 2022 mapping to reflect the zoning changes, a change to the minimum lot size mapping for the R2 and C3 zoned land is also proposed, with minimum lot sizes of 450m² and 2,500m²respectively. The current 40Ha minimum lot size is to be retained over the remainder of the site zoned C2 Environmental Conservation.

The site is to also be identified on the Urban Release Area map of CCLEP 2022, thus triggering Part 6 of CCLEP 2022 regarding the need for satisfactory arrangements to be in place with NSW Government agencies prior to development consent for any subdivision of land being granted.

This report provides an overview of the outcome of public exhibition. Based on community, public authority, and interest group consultation, as well as internal Council staff review, it is recommended that Council endorse the Planning Proposal, as amended, by way of an amendment to CCLEP 2022.

Background

On 26 April 2017, Council resolved the following:

204/17 That Council prepare a Planning Proposal to amend Wyong Local Environmental Plan 2013, to rezone the land known as Lot 273 DP 755266, 15 Mulloway Road, Chain Valley Bay, from E2 Environmental Conservation and E3 Environmental Management to E2 Environmental Conservation and R2 Low Density Residential, pursuant to Section 55 of the Environmental Planning and Assessment Act 1979;

205/17 That Council forward the Planning Proposal to the NSW Minister for Planning requesting a gateway determination, as well as requesting delegation for Council to finalise and make the draft Local Environmental Plan, pursuant to Section 56 (1) of the Environmental Planning and Assessment Act, 1979;

206/17 That Council prepare and exhibit, subject to the Gateway Determination, appropriate Development Control Plan provisions to amend Wyong Development Control Plan 2013;

207/17 That Council prepare and exhibit, subject to the Gateway Determination, appropriate amendments to applicable Section 94 Development Contributions Plan (if required) to support the development of the subject land;

208/17 That Council authorise staff to negotiate and prepare a Voluntary Planning Agreement with respect to any aspect of the proposal, (if required);

209/17 That Council undertake community and public authority consultation, in accordance with the Gateway Determination requirements, including the concurrent exhibition of the draft Development Control Plan, draft amending Section 94 Development Contributions Plan and draft Voluntary Planning Agreement (if required);

210/17 That Council consider a further report on results of the agency and community consultation.

It is noted that since the time the above was considered by Council, the NSW Government has introduced a new system for referencing environmental zones: the E2 Environmental Conservation zone is now shown as C2 Environmental Conservation and the E3 Environmental Management zone is now known as the C3 Environmental Management zone.

Current Status

The Planning Proposal is currently near the end of the Local Environmental Plan Amendment Process (see Figure 1).

Figure 1: Local Environmental Plan Amendment Process

Report

The subject site is described as Lot 273 DP755266, 15 Mulloway Road Chain Valley Bay.

The land is zoned part C2 Environmental Conservation and part C3 Environmental Management under CCLEP 2022. The site has an area of 16.59 Hectares (Ha) and is predominantly vegetated except for a dwelling and associated structures in the north-west of the site, and several cleared grazing areas in the centre of the site.

Surrounding land uses include:

· the existing low-density residential area of Chain Valley Bay to the west;

· a Manufactured Home Estate (MHE) to the east;

· State Recreation Area to the north; and

· Karignan Creek to the south.

Figure 2: Locality Plan

Proposed Planning Controls

It is proposed to rezone the land from part C2 Environmental Conservation and part C3 Environmental Management, to part R2 Low Density Residential to allow for low density residential development; part C2 Environmental Conservation to preserve significant vegetation and wildlife corridor; and part C3 Environmental Management to enable a large-lot residential allotment.

It is proposed to retain the current minimum lot size of 40Ha for the land to be zoned C2, and apply a minimum lot size of 2,500m² to the C3 land, and 450m² to the R2 land.

All land will remain in private ownership. The conservation area will be managed through a vegetation management plan (VMP) with the conservation protection mechanism to be resolved at a later. The options for conservation include:

· A biodiversity stewardship agreement (if approved);

· A conservation agreement (if approved); and

· A vegetation management plan and 88B instrument.

WLEP 2013 LZN

Figure 3: Existing Land Use Zones

Diagram

Description automatically generated

Figure 4: Proposed Land Use Zones

Concurrent Exhibition of Other Planning Controls

Pursuant to Council Resolution 206/17, a draft Central Coast Development Control Plan 2022 (CCDCP 2022) chapter was publicly exhibited with the Planning Proposal. The draft CCDCP 2022 chapter provides additional guidance for the development of the site beyond the generic controls of CCDCP 2022 regarding site development, relationship to surrounding sites and the protection of the environmental land at the south of the site. This DCP chapter can be found at Attachment 1.

Changes made to the DCP chapter post-exhibition are:

· Addition of three road types: Type 3 – Bushfire Perimeter, Type 4 – Access Laneway, and Type 5 – Entry Road;

· Removal of requirement for a shared pathway along the western boundary of the site due to the identification of private ownership issues and a lack of passive surveillance. Shared pathway on Bus Route Road (Type 1) and Entry Road (Type 5) to be retained;

· Amendment of road types in Figure 3: Indicative road layout and hierarchy and Appendix A Roads and Intersections, to reduce parking lane from 2.3m to 2.1m as follows:

- Bus Route Road (Type 1)

- Local Street (Type 2);

· Removal of Part 2.8 – Indigenous Heritage as this is dealt with as part of standard conditions of development consent;

· Addition of Part 2.11 – Bushfire, to minimise the risk of bushfires on life, property, and the environment and

Consultation

1 Internal Consultation

Internal consultation has been undertaken as summarised below:

a) Local Infrastructure and Planning

Council Resolution 208/17 authorised staff to “…negotiate and prepare a Voluntary Planning Agreement with respect to any aspect of the proposal, (if required).”

Under the North Wyong Shire Structure Plan (NWSSP) staging of the development within this area falls within the long-range timeframe (land will not be zoned before 15 years). Given the long-term timeframe under the NWSSP, lodgement of the Planning Proposal preceded Council’s strategic planning for the development of this area. However, under the NWSSP it is acknowledged that the release of the land can be accelerated, subject to appropriate funding arrangements being put in place to manage infrastructure and servicing issues associated with increasing the population in the locality.

The Department of Planning and Environment (DPE) has identified that the provisions of the NWSSP will be integrated into Central Coast Regional Plan 2041 (CCRP 2041) with priority now given to translating these plans into new homes and workplaces. It is therefore considered that the proposal is consistent with the NWSSP and will be consistent with the CCRP 2041.

b) Environmental Planning

Clearing of vegetation would be required to facilitate the proposed development of the site for a low-density residential development. While vegetation removal would generally occur as part of a development application process that would follow the completion of the Planning Proposal, Council must be satisfied that the proposal can reasonably meet the requirements of State Environmental Planning Policy (Biodiversity and Conservation) 2021 and the Biodiversity Conservation Act 2016.

To address the requirements of this legislation, a draft Biodiversity Certification Assessment Report (BCAR) has been prepared by Travers Bushfire and Ecology.

The purpose of the BCAR is to carry out relevant site surveys to prepare a BCAR in accordance with the relevant Acts and Regulations and in accordance with the Biodiversity Assessment Methodology 2020. The intent of the BCAR is to confirm the offsetting requirements for the potential vegetation loss and establish agreed requirements for the ongoing preservation of the environmental corridor land, proposed to be zoned C2 Environmental Conservation.

An ecological constraints report submitted in support of the application indicates that the proposal seeks to impact on approximately 10.25Ha of native vegetation, including 0.12Ha of Swamp Sclerophyll Forest Ecologically Endangered Community (EEC). The following mitigation measures are to be undertaken to mitigate and manage impacts on biodiversity values:

· Restore the conservation area to fully-structured native vegetation equivalent to PCT 1619 - Smooth-barked Apple - Red Bloodwood – Brown Stringybark - Hairpin Banksia heathy open forest and PCT 1718 - Swamp Mahogany - Broad-leaved Paperbark - Saw Sedge - Yellow Marsh Flower swamp forest.

· Swamp Sclerophyll Forest on Coastal Floodplains to be regenerated in accordance with the Vegetation Management Plan.

· Maintenance of Swift Parrot foraging habitat in the long-term.

· The corridor boundaries shall be fenced to ensure protection of its habitat.

· Implementation of measures to avoid frog and other terrestrial wildlife access to the proposed internal residential road network.

· Installation of under road culverts below both Teraglin Road and Mulloway Road to facilitate the movement of wildlife.

· Target weed control is to be undertaken within the corridor and remaining conservation area to control the invasion or spread of weed species.

· The bushland / urban interface is to be densely planted in the outer 10–15 m to provide a visual and light barrier into the corridor to promote ongoing fauna use.

· Buildings located directly adjacent to all retained potential swift parrot habitat vegetation have extra design standards imposed to avoid window strikes.

· Existing structures are to be inspected for microbat use before demolition.

· Felling of hollow-bearing trees is to be conducted under Ecologist supervision.

The BCAR is currently on public exhibition. It is considered that the Planning Proposal can be progressed alongside the finalisation of the BCAR process.

c) Environment and Health

A Phase 1 Report on Preliminary Site Investigation for Contamination (2016) for the site has been undertaken by a suitably qualified geotechnical engineer to demonstrate compliance with the requirements of SEPP Resilience and Hazards 2021. The report considers that there is a low potential for widespread contamination given the past site activities and the existing site conditions. Some localised potential contamination sources were identified including storage of debris concentrated in the northern portion of the site. The localised potential contamination issues can be readily addressed through investigation and localised remediation (where required). These investigations could initially be limited to targeted sampling of soils in localised areas of environmental concern (i.e., areas of disturbance, former/existing buildings, access tracks, cleared paddocks and dam sediments).

It has been determined that if these issues are addressed the land can be remediated to a suitable condition for residential use.

d) Heritage

According to the AHIMS Register, there are no recorded Aboriginal sites within a 1km radius of the site. Ground disturbance at the assessment site has occurred in the past due to the construction of a residential dwelling and associated activities. An Aboriginal Cultural Heritage Assessment Report (February 2019) was prepared by Mary Dallas Consulting Archaeologists. The report states that no Aboriginal archaeological remains or areas of archaeological potential were identified during the current assessment, and provided the following recommendations:

· The report is sufficient supporting documentation to inform the Aboriginal archaeological assessment of the Planning Proposal. There are no Aboriginal archaeological constraints to the rezoning of the subject land.

· No further archaeological works are considered warranted within the subject land in relation to the current Planning Proposal or any proposed future subdivision.

e) Transport Planning

Access to the site is obtained from the Pacific Highway via Chain Valley Bay Road and Mulloway Road. Entry to Chain Valley Bay Road is obtained from the Pacific Highway from an unsignalised intersection. Chain Valley Bay Road is a two-lane rural road with an 80km/hour speed limit, which intersects with Mulloway Road after approximately 1.5km. Mulloway Road is a local urban road with a 50km/hour speed limit.

The request was supported by a Traffic Impact Assessment (2019) prepared by Intersect Traffic. This traffic impact assessment was carried out with the assumption of a 110 residential lot yield – this has since been reduced to 93 residential lots. The Traffic Impact Assessment concluded:

· Road network: The local and state road network currently has sufficient two-way mid-block capacity to cater for the traffic generated by this development without adversely impacting on current levels of service on the local and state road network.

· Intersections:

- Chain Valley Bay Road / Mulloway Road: This intersection currently operates with uninterrupted flow conditions and will continue to do so post development.

- New Subdivision Road and Mulloway Road / New Subdivision Road and Teraglin Drive: The available sight distance at the proposed subdivision access connections exceed the Austroads Guide to Road Design requirements of approximately 100m for a 50km/h design speed.

- The need for an intersection upgrade at Pacific Highway and Chain Valley Bay Road, along with the need for either a review of the Northern Districts Contributions Plan or a Planning Agreement to adequately cater for local road and other infrastructure upgrades. The Classified (State) road intersection upgrade is further discussed under the Government Agency Consultation section below.

· Shared Pathways: The proposed development will generate pedestrian and cycle traffic therefore a nexus exists to provide additional facilities. A shared pathway is proposed, to connect Mulloway Road to Teraglin Drive.

· Public Transport: The proposed development will generate increased usage for the existing public transport services. A bus stop and shelter will need to be provided as part of the development.

f) Water and Sewer

The site has a 225mm diameter sewer pipe through it which was provided to connect the neighbouring Manufactured Housing Estate to the sewer system. The design load allowed for the subject site was 120ET. Initial calculations indicate there is sufficient capacity built into the existing sewer main, however this needs to be confirmed as part of development assessment stage investigations.

The 150mm water main that runs from Chain Valley Bay Road to the proposed development would require duplication on the southern side of the road from Chain Valley Bay Road to the western extent of the development frontage before crossing the road and connecting back into the existing 150mm water main. All remaining subdivision reticulation would then be laid in 100mm water mains.

g) Floodplain Management

A Flood Study and Impact Assessment (2018) has been prepared for the proposal. This study identifies that the limit of the Probable Maximum Flood (PMF) generally aligns with land proposed to be preserved under the C2 zoning and will not impact on any of the proposed R2 Low Density Residential zoned land.

DPE’s Biodiversity and Conservation Division is satisfied that the proponent has demonstrated that there are no adverse impacts on:

· Private land from overland flooding up to and including the 1% AEP flood event.

· Private land from mainstream flooding up to and including the 1% AEP flood event.

· Southern C2 zoned lands from overland flooding and/or increased pollutant loads.

· Private land from overland flooding up to and including the 1% AEP flood event.

2 Public Authority and Interest Groups Consultation

a) Department of Planning and Environment

Ensure Condition 1 of the Gateway Determination is satisfied prior to public exhibition:

· Staff response:

- The Planning Proposal was updated accordingly prior to public exhibition.

b) Department of Planning and Environment – Biodiversity and Conservation Division

BCD is satisfied that most of the biodiversity issues have been addressed within the revised Planning Proposal.

c) Department of Planning and Environment – Resources & Geoscience

The proposal is not considered likely to impact on future resource extraction beneath this site, and there are no resource sterilisation issues.

d) Geological Survey

Geological Survey raised no objection to the Planning Proposal.

e) Guringai Tribal Link (GTL)

GTL recommended that an Aboriginal Cultural Heritage Assessment be conducted in consultation with GTL and an attending archaeologist.

· Staff response:

- An Aboriginal Cultural Heritage Assessment Report (February 2019) was prepared by Mary Dallas Consulting Archaeologists. The report states that no Aboriginal archaeological remains or areas of archaeological potential were identified during the assessment and found no Aboriginal archaeological constraints to the rezoning of the subject land.

f) NSW Rural Fire Service

The RFS raised no objection to the Planning Proposal.

g) Office of Environment & Heritage

The [then] OEH requested further justification for inconsistency with Local Planning Direction 2.1 under Section 9.1, which has since been completed.

h) Subsidence Advisory NSW (SA NSW)

SA NSW raised no objection to the Planning Proposal.

i) Transport for NSW (TfNSW)

TfNSW raised no objection to the Planning Proposal, however reiterated previous advice in relation to the requirement to upgrade the intersection at Pacific Highway and Chain Valley Bay Road prior to any further lot release.

· Staff response:

- TfNSW and the proponent are in the process of ensuring satisfactory arrangements are in place to upgrade the intersection at Pacific Highway and Chain Valley Bay Road prior to any development proceeding on the site. This outstanding issue does not affect the completion of this Planning Proposal as the site is to be identified on the Urban Release Area map of CCLEP 2022 thus triggering Part 6 of CCLEP 2022 regarding the need for satisfactory arrangements to be in place prior to development consent being granted for any subdivision of land.

No response was received from Darkinjung Local Aboriginal Land Council, Department of Primary Industries – Water or the NSW National Parks and Wildlife Service.

3 Community Consultation

The Planning Proposal and other relevant supporting documentation were publicly exhibited between 1 November 2021 and 28 November 2021. The Planning Agreement was publicly exhibited between 22 July 2022 and 19 August 2022.

The following submissions were received in relation to the exhibition of the Planning Proposal and supporting documentation:

a) Three submissions objecting to the proposal based on concerns relating to:

· Loss of environmental protection land resulting in:

- Loss of habitat.

- Reduced regional air quality, local water quality.

- Carbon being released from removing the vegetation.

- Loss of local scenic values for near-by residents and visitors.

- Loss of residential amenity for existing residents.

· Staff response:

- To mitigate the impact on ecological endangered communities and existing vegetation, the proposal provides for several biodiversity corridors on site that retain and manage native vegetation, including endangered ecological communities and the planting of new vegetation. Overall, the total area of both biodiversity corridors comprises 10.55Ha.

- To ensure these corridors are secured and managed in perpetuity, it is proposed to:

o Rezone the biodiversity corridors to C2 Environmental Conservation, with a net gain in C2 zone protection of +5.06Ha;

o Register a restrictive covenant on title over the corridors to ensure these are also protected in perpetuity; and

o Finalise the BCAR over the site to formalise further vegetation management objectives.

b) One submission supporting the proposal based on:

· Anticipated improved bushfire planning outcomes for properties currently adjoining this site and experiencing overgrown vegetation. The need for an improved fire break along the rear of properties fronting Trevally Avenue was noted.

· Staff response:

- A principle of Planning for Bushfire Protection (2019) is the establishment of adequate asset protection zones (APZs) for future housing provision at the urban interface. As part of the proposal, APZs have been recommended in compliance with Bushfire Attack Level (BAL) 29 (Method 2 - AS3959, 2009) in compliance with this planning principle.

No submissions were received in relation to the exhibition of the Planning Agreement.

4 Outcomes of Consultation

Based on the community, public authority and interest group feedback, the Planning Proposal and Planning Agreement has satisfied relevant statutory requirements relating to consultation.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

1036/20 That any motions put before Council for the remainder of this term of Council that have financial implications require the Chief Executive Officer to provide a report on how those additional costs will be met.

The following statement is provided in response to this resolution of Council.

· Northern Districts Development Contributions Plan.

· Shirewide Infrastructure, Services and Facilities Development Contribution Plan.

Note that the Northern Districts Development Contributions Plan is currently being reviewed and revised. In the interim, a Planning Agreement has been prepared and publicly exhibited, reflecting the contributions per lot that will be required under the revised Northern Districts Development Contributions Plan.

Link to Community Strategic Plan

Theme 2: Smart

Goal C: A growing and competitive region

S-C3: Facilitate economic development to increase local employment opportunities and provide a range of jobs for all residents.

Theme 3: Green

Goal F: Cherished and protected natural beauty

G-F1: Protect our rich environmental heritage by conserving beaches, waterways, bushland, wildlife corridors and inland areas, and the diversity of local native species.

Theme 4: Responsible

Goal I: Balanced and sustainable development

R-I1: Preserve local character and protect our heritage and rural areas including concentration of development along transport corridors and around town centres and east of the M1.

Goal I: Balanced and sustainable development

R-I2: Ensure all new developments are well planned with good access to public transport, green space and community facilities and support active transport.

Goal I: Balanced and sustainable development

R-I3: Ensure land use planning and development is sustainable and environmentally sound and considers the importance of local habitat, green corridors, energy efficiency and stormwater management.

Goal I: Balanced and sustainable development

R-I4: Provide a range of housing options to meet the diverse and changing needs of the community and there is adequate affordable housing.

Risk Management

Rezoning of land is a core function of Council and does not introduce new organisational risks.

Options

1 Endorse the Planning Proposal.

The Planning Proposal is considered to have strategic merit, it has received a Gateway Determination and the concerns raised by the public have been addressed.
This is the recommended option.

2 Refuse the finalisation of the Planning Proposal.

The Planning Proposal has been assessed on its merit and is deemed to be a suitable proposal. In Council staff opinion there is no reason why it should be refused. Not recommended.

3 Await completion of Northern Districts Development Contributions Plan.

A Planning Agreement has been prepared and exhibited, which references the same figures as currently proposed within the revised draft Northern Districts Contributions Plan. Not recommended.

Attachments

1 ⇨

Central Coast DCP Chapter - 15 Mulloway Road, Chain Valley Bay

Provided Under Separate Cover

D15335638

Item No: 2.9
Title: Outcomes of Regional Housing Taskforce
Department: Environment and Planning
27 September 2022 Ordinary Council Meeting

Reference: F2022/01640 - D15320637

Author: David Milliken, Unit Manager Strategic Planning

Glenn Cannard, Unit Manager Community and Culture

Manager: David Milliken, Unit Manager Strategic Planning

Executive: Alice Howe, Director Environment and Planning

Recommendation

That Council:

1 Acknowledge the recommendations of the Regional Housing Taskforce and the NSW Government’s response to them.

2 Write to the Minister for Homes outlining Central Coast Council’s intentions to support implementation of the Regional Housing Taskforce’s recommendations.

3 Note Council’s draft Housing Strategy will be finalised for exhibition following the release of the Central Coast Region Plan 2041.

4 Authorise the Chief Executive Officer to lend Council’s support to the coalition of local organisations advocating for an acceleration of action to address the current lack of affordable housing on the Central Coast, subject to alignment with Council’s adopted policy position.

Report purpose

To consider the outcomes of the NSW Government’s response to the Regional Housing Taskforce’s recommendations and its relationship to Council’s activities,

Executive Summary

The NSW Government recently released its response to the Regional Housing Taskforce’s Recommendations Report (November 2021). The NSW Government has adopted the five main recommendations:

· Support measures that bring forward a supply of 'development ready' land.

· Increase the availability of affordable and diverse housing across regional NSW.

· Provide more certainty about where, when and what types of homes will be built.

· Investigate planning levers to facilitate the delivery of housing that meets short-term needs.

· Improve monitoring of housing and policy outcomes and demand indicators.

Council generally supports the five recommendations, as they will assist in addressing housing supply issues across the Central Coast.

The forthcoming release of the Central Coast Region Plan (CCRP) will set the high-level strategic direction for planning of the Central Coast, with housing being a key focus area. Council is also close to finalising its draft Housing Strategy, which will align with the CCRP and include an implementation framework for the CCRP and the recommendations of the Regional Housing Taskforce. In addition, Council has an adopted Affordable and Alternative Housing Strategy, which contains a pathway to implementing many of the issues contained within the Regional Housing Taskforce’s recommendations.

Council is committed to work collaboratively with key local stakeholders to pursue objectives aimed at addressing housing affordability and supply within our region.

Background

In June 2021 the NSW Government established the Regional Housing Taskforce in response to increasing pressures on the supply and affordability of housing in Regional NSW.

The Taskforce consulted widely with local government, experts from the development and housing sectors, community housing providers and regional communities across the state. Council provided a submission to the Taskforce on 27 August 2021 (Attachment 1).

The Taskforce delivered a Findings Report in September 2021 and a Recommendations Report in November 2021, which made five main recommendations and 15 detailed recommendations.

In August 2022, the NSW Government adopted all of the recommendations of the Regional Housing Taskforce, as well as announcing the 2022 Housing Package, which provides significant support to implement the NSW Government’s Housing Strategy 2041. This package includes:

· The Accelerated Infrastructure Fund, which provides $300m over four years to deliver local infrastructure to support development of 150,000 homes across NSW;

· The Regional Housing Strategic Planning Fund, with grants of up to $250,000 available for a range of local strategic and statutory planned-related work;

· Closing the Gap Housing Solution, providing $149.8m over three years to expand Aboriginal housing in regional and remote areas;

· $174m to support key worker housing; and

· $300m to support upgrades of up to 15,800 aged social housing dwellings.

Council intends to apply for funding streams for which local government is eligible.

Report

Council supports the recommendations of the Regional Housing Taskforce as they are generally consistent with the analysis supporting the development of the Department of Planning and Environment’s CCRP, and Council’s draft Housing Strategy. Specific comment against each of the main recommendations is included in the table below, noting that the Government has adopted all five recommendations.

Government Position	Council Comment
Recommendation 1: Support measures that bring forward a supply of 'development ready' land
The NSW Government will implement measures to improve infrastructure planning, delivery, and coordination in the regions to help unblock housing supply	Supported · The main issues with housing supply (in general) on the Central Coast are two-fold: o The low uptake of higher density development in key centres such as Gosford and The Entrance; o The lack of enabling infrastructure for land already zoned for residential development. · The draft CCRP proposes an Urban Development Program, which aims to address these issues and co-ordinate the release of land for housing. · Council is currently developing a Housing Strategy and would welcome the opportunity to discuss specific NSW Government initiatives in this space, to insure alignment at the local level.
Recommendation 2: Increase the availability of affordable and diverse housing across regional NSW
The NSW Government is working to make sure that the regions have enough diverse and affordable homes to meet the needs of communities.	Supported · Council has adopted an Affordable and Alternative Housing Strategy, which includes a range of actions to increase the supply of affordable housing across the Central Coast. This strategy is a comprehensive plan that addresses initiatives across the housing continuum, from homelessness through to home ownership, providing pathways for a range of households, from very low through to moderate incomes. A key focus of the strategy is on actions that are most likely to have a practical impact on the supply of affordable housing, including developing affordable housing on underutilised Council land. · The draft CCRP includes strategies and actions to ensure a greater diversity of housing typologies on the Central Coast, including a focus on providing increased amounts of different types of medium and higher density housing. Council is committed to implementing relevant local actions in the CCRP, once it is adopted, and proposes to reflect increased medium and higher density housing needs through the draft Housing Strategy and implemented through District Place Plans. · Council’s proposed Housing Strategy will support and enhance our adopted Affordable and Alternative Housing Strategy. · Council would welcome further investment by NSW and Federal governments in housing creation, particularly for social housing.
Recommendation 3: Provide more certainty about where, when and what types of homes will be built.
The NSW Government is committed to delivering a strategy-led planning system that provides communities with certainty about future housing development in the regions	Supported · While Council supports the provision of additional funding to local governments to progress strategic planning, the key issue is the access to planning resources to progress these projects with a shortage of planners in regional local governments. · Council welcomes the funding support offered by the NSW Government in its response to the Taskforce’s recommendations. · The CCRP will shortly be released, which will provide the high-level strategy for planning on the Central Coast. The CCRP will inform a review of Council’s Local Strategic Planning Statement and be implemented through the development of District Place Plans, commencing with the Wyong and Peninsular District Place Plans in FY2023.
Recommendation 4: Investigate planning levers to facilitate the delivery of housing that meets short-term needs.
The NSW Government will introduce new provisions in the planning system to support the delivery of housing that meets short-term housing needs	Supported · Council welcomes the opportunity to work with the NSW Government to explore amendments to planning provisions that accelerate the delivery of housing. · Council is aware that there is a significant gap between the number of consents issued for housing and the number of approved developments that progress to completed building work. Understanding and removing barriers to this investment by the private sector would materially improve housing supply.
Recommendation 5: Improve monitoring of housing and policy outcomes and demand indicators.
The NSW Government is working to ensure that there is greater transparency and accountability in the delivery of new homes and to better quantify and understand regional housing pressures so that clear benchmarks and targets can be set	Supported · This is a welcome area of focus, as consistent data are important for all stakeholders to understand the state of the market. · The proposed Central Coast Urban Development Program will provide local data consistent with the Regional Housing Supply Monitor. · Council is also undertaking an internal review of planning data monitoring to ensure the required information is collected at a local level, duplication with NSW Government data is removed and to ensure we have a consistent internal approach.

Consultation

Council is awaiting the release of the CCRP prior to finalising its draft Housing Strategy, which will be consistent with the CCRP. The draft Housing Strategy will be exhibited for public consultation prior to adoption by Council.

There is currently growing momentum across the Central Coast for coordinated action to address the critical shortage of local affordable housing. This has led to a coalition of key stakeholders coming together to develop a unified position on the situation.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

The following statement is provided in response to this resolution of Council.

There are no direct financial implications associated with this report. Development of Council’s Housing Strategy is funded in this year’s adopted budget. Development of District Place Plans and Contributions Plans will be progressed through a combination of Council funds and NSW Government grant applications.

Link to Community Strategic Plan

Theme 4: Responsible

Goal I: Balanced and sustainable development

R-I4: Provide a range of housing options to meet the diverse and changing needs of the community and there is adequate affordable housing.

Attachments

1 ⇨

Submission - Regional Housing Taskforce - Central Coast Council

Provided Under Separate Cover

D14801646

Item No: 2.10
Title: Surf Life Saving Central Coast and Surf Club Financial Partnership Support 2022/2023
Department: Community and Recreation Services
27 September 2022 Ordinary Council Meeting

Reference: F2022/00021 - D15285513

Author: Phil Cantillon, Unit Manager Leisure Beach Safety and Community Facilities

Executive: Melanie Smith, Director Community and Recreation Services

Recommendation

1 That Council adopt the recommendations as outlined in this report to provide 2022/23 and 2023/24 financial partnership support to Surf Life Saving Central Coast (SLSCC) and the Central Coast’s 15 Surf Clubs.

2 That Council approve the distribution of $213,500 per year for the two financial years through the following:

a $38,000 per year to SLSCC to coordinate beach safety activities and educational messaging across the Central Coast.

b $78,000 per year to SLSCC to administer the purchase of the following equipment on behalf of the Central Coast’s 15 Surf Clubs. This includes:

i. Inflatable Rescue Boat (IRB) motor over a multi-year replacement scheduled cycle;

ii. IRB hull over a multi-year replacement scheduled cycle;

iii. service radios annually for all Surf Clubs;

iv. service oxygen equipment annually for all Surf Clubs; and

v. purchase of one rescue board for each Surf Club.

c $6,500 per year direct to each of Central Coast’s 15 Surf Clubs to support beach safety operations.

Report purpose

To consider the recommendations to provide 2022/23 and 2023/24 financial partnership support to Surf Life Saving Central Coast (SLSCC) and the Central Coast’s 15 Surf Clubs of $213,500 per year for lifesaving equipment, educational programs, and activities

Executive Summary

Council provides a lifeguard service across 15 patrolled beach locations Monday to Friday from late September to April annually.
The service provides a safe beach and aquatic environment for the residents and visitors of the region. SLSCC through the individual Surf Clubs, provides lifesaver patrols on the weekends and public holidays, covering the same span of hours and beach locations as our Council service. This creates a seven day a week seamless service for the community.

This support will allow Council, SLSCC and the Surf Clubs to continue to deliver vital beach safety patrols and educational programs on the weekend to Central Coast’s residents and visitors, keeping them safe and informed of the importance to “Swim Between the Flags”.

The Central Coast’s 15 Surf Clubs are as follows:

- The Lakes Surf Life Saving Club

- Soldiers Beach Surf Life Saving Club

- North Entrance Surf Life Saving Club

- The Entrance Surf Life Saving Club

- Toowoon Bay Surf Life Saving Club

- Shelly Beach Surf Life Saving Club

- Wamberal Surf Life Saving Club

- Terrigal Surf Life Saving Club

- North Avoca Surf Life Saving Club

- Avoca Beach Surf Life Saving Club

- Copacabana Surf Life Saving Club

- MacMasters Beach Surf Life Saving Club

- Killcare Surf Life Saving Club

- Ocean Beach Surf Life Saving Club

- Umina Beach Surf Life Saving Club

It is recommended that Council provides $213,500 per year in direct financial support for the 2022/23 and 2023/24 financial years. The value is consistent to the previous annual financial support provided.

Background

In the last two financial years Council resolved to provide financial partnership support of $213,500 to SLSCC and the region’s 15 Surf Clubs on an annual basis due to ongoing budget uncertainty. This two-year agreement provides SLSCC with a longer-term agreement and ongoing Council support, following the positive financial turnaround of the organisation from the previous financial challenges.

Council previously provided financial support with a three-year agreement in place from 2017 to 2020. Separate financial partnership support agreements were also in place in the former Gosford City Council and Wyong Shire Council, that jointly accumulated to the combined value proposed.

This re-current financial partnership support has historically been presented to SLSCC and Surf Clubs through an annual cheque presentation event held at the start of the patrol season in October, with SLSCC representatives and Surf Club Presidents in attendance. However, due to COVID-19 restrictions, this has not happened in the last two years. A cheque presentation event is planned by Council with Surf Life Saving Central Coast and the 15 Surf Club representatives to take place in October 2022.

The financial partnership support will be structured in the same manner as the previous years’ agreements, following close consultation with Surf Life Saving Central Coast. The approach and ongoing partnership will ensure that the Central Coast is a leader in beach safety and an equipment replacement cycle is fully implemented.

Current Status

In 2021/22, Surf Life Saving Central Coast had a total of 8,387 active members across the 15 Surf Clubs, who delivered over 87,717 patrolling hours, with 415,313 preventative actions and 606 rescues completed. SLSCC Support Operations Team also responded to over 100 emergency call outs and incidents and 11 Community Rip Demonstrations were conducted including the black spot area of The Entrance channel. A high number of community education programs were delivered online due to COVID lockdown, with face-to-face programs returning term 4 in 2022 with 58 school bookings. These educational programs are aligned to Council’s own beach safety messaging, that is delivered throughout the year.

A Social and Economic Value Study of Surf Life Saving in Australia was completed by Deloitte’s in August 2020, which reported that the total net benefit of Surf Life Saving Australia to the Australian community is $97 billion across 15 years, and that every dollar invested provides a return of $20.20 for the Australian community. This Cost Benefit Analysis identifies four specific benefits including - coastal safety and lifesaving, education and training, social benefit of volunteering and increased physical activity. The cost to Council to provide an extended lifeguard service at the weekends and public holidays at the current 15 beach locations would be approximately $860,000. This includes weekend and public holiday employee penalty rates and loading, and fleet cost.

Consultation

Leisure, Beach Safety and Community Facilities Unit Manager has worked closely with the Chief Executive Officer for Surf Life Saving Central Coast to ensure the ongoing support provides the most benefit for the community and maximises resources between the two organisations.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

The following statement is provided in response to this resolution of Council.

The financial partnership support of $213,500 per year is currently budgeted in the 2022/23 Leisure, Beach Safety and Community Facilities - Other Expenses, operational budget. The value will be budgeted again in the Unit’s 2023/24 operational budget.

The proposed 2022/23 and 2023/24 financial partnership support consists of:

1 $38,000 per year to SLSCC to coordinate beach safety activities and educational messaging across the Central Coast.

2 $78,000 per year to SLSCC to administer the purchase of the following equipment on behalf of the Central Coast’s 15 Surf Clubs. This includes:

a Inflatable Rescue Boat (IRB) motor over a multi-year replacement scheduled cycle;

b IRB hull over a multi-year replacement scheduled cycle;

c service radios annually for all Surf Clubs;

d service oxygen equipment annually for all Surf Clubs; and

e purchase of one rescue board for each Surf Club.

3 $6,500 per year direct to each of Central Coast’s 15 Surf Clubs to support beach safety operations. A total of $97,500 per year provided.

Council also provides shared fleet and equipment, with beach vehicles and jet skis utilised by Surf Clubs on weekends and public holidays. This in-kind support is estimated at approximately $50,000 per year based on usage at the weekends and public holidays. Additionally, Council provides 95% subsidised rental fees for Council owned Surf Clubs. Additionally, for 2022/23 Council has an annual recurrent surf club maintenance budget of $134,000 for reactive repairs of the buildings, and $20,000 for capital renewal/upgrades. Future capital funds are aligned based on the condition of surf clubs, lifecycle of assets and resource priorities in line with Council’s asset management plans.

Link to Community Strategic Plan

Theme 1: Belonging

Goal L: Healthy lifestyle for a growing community

B-A4: Enhance community safety within neighbourhoods, public spaces and places.

Risk Management

There is a reputational and safety risk to the community, if the financial partnership support ceases or is significantly reduced, due to insufficient funds aligned to replace rescue equipment, complete educational programs, and support beach safety patrols. This presents a risk of future drownings on the beaches. Regular consultation and discussions have occurred with Surf Life Saving Central Coast to maintain ongoing education programs and patrol delivery to the same levels of the previous three-year agreement.

The cost to Council replacing this service on weekends and public holidays internally is significant, costing over four times the financial support provided.

Options

1 To provide the recommended 2022/23 and 2023/24 financial partnership support to Surf Life Saving Central Coast and the 15 Surf Clubs of $213,500 per year.

This is the recommended option.

2 Council could decide to provide less financial support to Surf Life Saving Central Coast and the 15 Surf Clubs. This presents a significant risk of rescue equipment not being satisfactory, educational programs being reduced and patrols not occurring. Not recommended.

Attachments

Nil.

Item No: 2.12
Title: Community Events and Place Activation Grant Program - 2022-2023
Department: Community and Recreation Services
27 September 2022 Ordinary Council Meeting

Reference: F2018/01444 - D15144782

Author: Belinda McRobie, Section Manager Community Development

Manager: Glenn Cannard, Unit Manager Community and Culture

Executive: Melanie Smith, Director Community and Recreation Services

Recommendation

1 That Council allocate $279,172.82 (inclusive of GST where applicable) from the 2022-23 grants budget to the Community Events and Place Activation Grant Program as outlined below and in Attachment 1.

a. The Rotary Club of Gosford North Incorporated - $17,500.00

b. Davistown Putt Putt Regatta and Wooden Boat Festival Incorporated - $19,985.00

c. Symphony Central Coast Incorporated - $13,900.00

d. Wyong Shire Garden Competition Committee Incorporated - $13,981.00

e. Gosford Race Club Limited - $10,000.00

f. Green Point-Terrigal Community Services Incorporated - $1,679.85

g. Surfing NSW Incorporated - $10,000.00

h. Central Coast Conservatorium of Music Incorporated - $11,000.00

i. Heritage Ventures - $10,800.00

j. Words on the Waves - $19,970.00

k. Eastcoast Beverages - $13,250.00

l. 5 Lands Walk Incorporated - $20,000.00

m. Terrigal Trotters Incorporated - $8,892.00

n. SingleTrack Events Pty Ltd - $10,000.00

o. Naughty Noodle Fun Haus Incorporated - $20,000.00

p. Tangerine Events - $6,700.00

q. Sport Central Coast - $2,938.57

r. Rotary Club of Kincumber - $8,071.00

s. Gosford Sister City Association Incorporated- $17,830.40

t. The Bays Community Group Incorporated - $3,250.00

u. Permaculture Central Coast (PCC) Incorporated - $14,325.00

v. National Water Ski Racing Association-Region V Australia - $5,100.00

w. Business NSW - $20,000.00

2 That Council decline applications as outlined below, for the reasons indicated below and in Attachment 1, and the applicants be advised and where relevant, directed to alternate funding sources.

a. The Attic Theatrical - broader community benefit is not demonstrated.

b. Creating Little Reminders - Insufficient information provided to make an accurate assessment.

c. The Cancer Council NSW - broader community benefit is not demonstrated.

d. Umbala Events Pty Ltd - broader community benefit is not demonstrated.

e. 3 Villages Community Group Incorporated - broader community benefit is not demonstrated.

f. 25K Creative Group - Insufficient information provided to make an accurate assessment.

g. Glenworth Valley Leisure Pty Ltd - broader community benefit is not demonstrated.

h. The iHive Pty Ltd - Insufficient information provided to make an accurate assessment.

i. Global Dance Works Pty Ltd - Insufficient information provided to make an accurate assessment.

j. JC Entertainment & Events Pty Ltd - Insufficient information provided to make an accurate assessment.

k. The Bloom Barn Farm - Insufficient information provided to make an accurate assessment.

l. PWP Events and Marketing - Application withdrawn.

Report purpose

To seek endorsement of the recommendations for the 2022/23 Community Events and Place Activation Grant Program.

Executive Summary

This report considers the applications and recommendations for the Community Events and Place Activation Grant Program.

The Community Events and Place Activation Grant Program is an annual program that opened for applications on 1 June 2022 and closed on 30 June 2022.

Funding of up to $20,000 per project is available for selected activities that are able to be completed within an 18 month timeframe from the date of approval.

Background

Community Grants

Council’s Grants program is provided to support the community to deliver programs, projects or events that build connections, celebrate our local community, align with the One-Central Coast Community Strategic Plan and build capacity across the entire Central Coast community.

Council’s Community Grants Program includes:

· Community Development Grant Program

· Community Events and Place Activation Grants Program

· Community Support Grant Program

The Community Events and Place Activation Grants Program applications and recommendations are being considered in this report. It aims to support local organisations to deliver community events and activities that activate spaces and places to complement activity around town centres, foreshores, lakes and open spaces for families, community and visitors.

The Community Events and Place Activation Grant Program provides an annual budget of $300,000 as detailed in table 1 below.

Table 1: Community Events and Place Activation Grant Program

Program	Budget	Opening Period	2022/23 allocation to date	Recommended allocation within this report	Allocation plus Recommendation
Community Events and Place Activation	$300,000	1 June 2022 – 30 June 2022	$0.00	$279,172.82	$279,172.82
TOTAL	$300,000		$0.00	$279,172.82	$279,172.82

Assessment

35 applications were received and assessed by 19 August 2022 with 23 applications recommended for funding in this Council report.

12 applications were not recommended for funding. Of these, one was withdrawn by the applicant, six had insufficient information to make an accurate assessment and five did not demonstrate broader community benefit. Applicants are advised to discuss their proposals further with Council’s Grants Officers prior to resubmission in future rounds.

The Community Events and Place Activation Grant applications were assessed by Council’s Unit Manager Community and Culture and the Community Grants Team, against the Community Events and Place Activation Grant Program guidelines.

Consultation

Information on Council’s Community Grants program is provided on Council’s website and promoted through Council’s social media platforms.

Regular emails with relevant information were provided to the community grants database.

Council staff conducted two grant writing workshops with 33 attendees and four grant information sessions with 76 attendees.

Additionally, Council staff also undertook three drop-in support sessions with eight attendees to assist applicants with their submissions, where required.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

The following statement is provided in response to this resolution of Council.

Expenditure is approved until the end of the 2022/23 financial year. Unspent funds will lapse on 30 June 2023.

No additional budget is required nor sought through this report. All actions within have been funded through existing and approved operational plan budgets.

Council’s 2022/23 Operational Expenditure original budget allocates $300,000 to the Community Events and Place Activation Grant Program.

Link to Community Strategic Plan

Theme 1: Belonging

Goal A: Our community spirit is our strength

B-A1: Work within our communities to connect people, build capacity and create local solutions and initiatives.

Risk Management

All successful applications will receive a letter of offer outlining Council’s requirements of funding, service delivery and accountability for both Council and the funded organisation.

Applications recommended for funding are conditional on all relevant event/activity approvals (including COVID-19 related) being provided prior to the release of funds, and successful applicants are required to return any unspent funds for projects not able to be delivered as planned, including through COVID-19 related impacts.

All successful applicants are required to submit a final project acquittal report no later than twelve weeks after the agreed completion date of the activity/project with copies of any photos, promotional materials, and evidence of payment/purchase for each funded item.

Options

1 Approval of all recommended applications as submitted will provide a community benefit to residents of the Central Coast Local Government Area.

This is the recommended option

2 Non-approval of some or all applications, as recommended, may result in projects not being undertaken if the respective proponents are unable to secure alternate funding. Not recommended.

Critical Dates or Timeframes

Many of these grant applications are dependent upon support via Council’s grant program. Should decisions be delayed or not supported, projects may not be undertaken.

Attachments

1 ⇨

Community Events and Place Activation Grants 2022-2023 - Recommended and Not Recommended

Provided Under Separate Cover

D15308275

Item No: 2.13
Title: Community Development Grant Program - 2022-2023
Department: Community and Recreation Services
27 September 2022 Ordinary Council Meeting

Reference: F2018/00680 - D15144799

Author: Belinda McRobie, Section Manager Community Development

Manager: Glenn Cannard, Unit Manager Community and Culture

Executive: Melanie Smith, Director Community and Recreation Services

Recommendation

1 That Council allocate $289,860.51 (inclusive of GST where applicable) from the 2022-23 grants budget to the Community Development Grant Program as outlined below and in Attachment 1.

a. Kincumber and District Neighbourhood Centre Incorporated - $13,210.00.

b. Volunteering Central Coast Incorporated - $19,164.28.

c. Camp Breakaway Incorporated - $20,000.

d. Community Environment Network Incorporated - $19,314.00.

e. Volunteer Marine Rescue NSW-Central Coast - $19,000.00.

f. Coast & Country Primary Care Limited - $11,000.00.

g. We Care Connect Limited $10,855.00.

h. Lions Club of Northlakes Central Coast Incorporated - $19,515.46.

i. 5 Lands Artist Collective Incorporated - $20,000.00.

j. Killcare Surf Life Saving Club Incorporated - $6,000.00.

k. Gorokan Probus Club Incorporated - $2,810.00.

l. Berkeley Vale Rugby League and Sports Club - $3,860.00.

m. The Fathers Table - $15,000.00.

n. Art at Work Incorporated - $7,360.00.

o. Road Safety Education Limited - $20,000.00.

p. Coast Community Broadcasters Incorporated - $3,400.00.

q. The Attic Theatrical - $17,390.00.

r. Central Coast Volunteer Rescue Squad Incorporated - $15,809.77.

s. SparkCC Incorporated - $12,999.00.

t. Diamond Women Limited - $16,680.00.

u. Toowoon Bay Surf Life Saving Club Incorporated - $4000.00.

v. Five-O Plus Public Radio Association Incorporated - $5,493.00.

w. Surf Life Saving Central Coast Incorporated - $7,000.00.

a. Community Defib Project - based outside of the Central Coast Local Government Area.

b. The Entrance Preschool Kindergarten Association Incorporated - application is ineligible.

c. Tarragal Outrigger Canoe Club - broader community benefit is not demonstrated.

d. Volunteering Central Coast Incorporated - application is ineligible.

e. Mannering Park Amateur Sailing Club Incorporated - broader community benefit is not demonstrated.

f. Pretty Beach P&C Association - application is ineligible.

g. Cancer Patients Foundation Limited - application is ineligible.

h. Liquid Limbs Incorporated - Insufficient information provided to make an accurate assessment.

i. The iHive Pty Ltd - application is ineligible.

j. Toukley Rugby League Football Club Incorporated - application is ineligible.

k. ByED- Insufficient information provided to make an accurate assessment.

l. The Shepherd Centre- For Deaf Children - Insufficient information provided to make an accurate assessment.

m. Macular Disease Foundation Australia - Insufficient information provided to make an accurate assessment.

n . Critical Path Incorporated - application is ineligible.

o. Killarney Vale Australian Football Club Incorporated - broader community benefit is not demonstrated.

p. Central Coast Conservatorium of Music Incorporated - application is ineligible.

q. Davistown Progress Association Incorporated- application is ineligible.

r. Kariong Progress Association - application is ineligible.

s. Naughty Noodle Fun Haus Incorporated - Insufficient information provided to make an accurate assessment.

t. Ourimbah Public School P&C Association- application is ineligible.

u. Older Worker Empowerment- Insufficient information provided to make an accurate assessment.

Report purpose

To seek endorsement of the recommendations for the 2022/23 Community Development Grants Program.

Executive Summary

This report considers the applications and recommendations for the Community Development Grants Program.

The Community Development Grants Program is an annual program that opened for applications on 1 June 2022 and closed on 30 June 2022.

Funding of up to $20,000 per project is available and provides funding to selected activities that are able to be completed within an 18 month timeframe from the date of funding approval.

Community Grants

Council’s Community Grants Program includes:

· Community Development Grant Program

· Community Events and Place Activation Grant Program

· Community Support Grant Program

The Community Development Grants Program applications and recommendations are being considered in this report. It aims to support local community organisations to implement specific projects and activities that provide community outcomes and enhance the quality of life of residents, as well as strengthening their ability to deliver projects and services that respond to the needs of the community.

The Community Development Grants Program provides a budget of $300,000 annually as detailed in Table 1 below.

Table 1: Community Development Grant Program

Program

Budget

Opening Period

2022-23 allocation to date

Recommended allocation within this report

Allocation plus Recommendation

Community Development Grant Program

$300,000

1 June 2022 – 30 June 2022

$0.00

$289,860.51

TOTAL

$300,000

$0.00

$289,860.51

Assessment

Forty-Four applications were received and assessed by 19 August 2022 with twenty-three applications recommended for funding in this Council report.

Twenty-one applications were not recommended for funding. Of these, one was based outside of the Central Coast Local Government Area, eleven were ineligible, six had insufficient information to make an accurate assessment and three did not demonstrate broader community benefit. Applicants are advised to discuss their proposals further with Council’s Grants Officers prior to resubmission in future rounds.

The Community Development Grant applications were assessed by Council’s Unit Manager Community and Culture and the Community Grants Team, against the Community Development Grants Program guidelines.

Consultation

Information on Council’s Community Grants program is provided on Council’s website and promoted through Council’s social media platforms.

Regular emails with relevant information were provided to the community grants database.

Council staff conducted two grant writing workshops with 33 attendees and four grant information sessions with 76 attendees.

Additionally, Council staff also undertook three drop-in support sessions with eight attendees to assist applicants with their submissions where required.

Financial Considerations

At its meeting held 19 October 2020, Council resolved the following:

The following statement is provided in response to this resolution of Council.

Council’s 2022/23 Council Operational Expenditure original budget allocates $300,000 to the Community Development Grant Program.

Expenditure is approved until the end of the 2022-2023 financial year. Unspent funds will lapse on 30 June 2023.

No additional budget is required nor sought through this report. All actions within have been funded through existing and approved operational plan budgets.

Link to Community Strategic Plan

Theme 1: Belonging

Goal A: Our community spirit is our strength

B-A1: Work within our communities to connect people, build capacity and create local solutions and initiatives.

Risk Management

All successful applications will receive a letter of offer outlining Council’s requirements of funding, service delivery and accountability for both Council and the funded organisation.

Options

1 Approval of all recommended applications as submitted will provide a community benefit to residents of the Central Coast Local Government Area.

This is the recommended option

2 Non-approval of some or all applications, as recommended, may result in projects not being undertaken if the respective proponents are unable to secure alternate funding. Not recommended.

Critical Dates or Timeframes

Many of these grant applications are dependent upon support via Council’s grant program. Should decisions be delayed or not supported projects may not be undertaken

Attachments

1 ⇨

Community Development Grants 2022-2023 - Recommended and Not Recommended

Provided Under Separate Cover

D15308857

Contribution Plan Reference:	Summary
R49-8	Road widening – Warnervale Road
R49-9	Road widening – Louisiana Road
dC9	Drainage and stormwater quality land
S11-2	Small park
R49-8	Road widening – Warnervale Road
dC8	Drainage and stormwater quality land

Contribution Plan Reference:	Summary
R49-8	Road widening – Warnervale Road
R49-30	Shared pathway – Warnervale Road (difference in width between footpath and cycleway)
R49-30	Off road cycleway – Full width (2.5m) between Louisiana Road and Lotus Terrace
I-49-14	Warnervale Road / Louisiana Road intersection
Channel C - dC9	Channel works
R49-8	Road widening – Warnervale Road
R49-30	Shared pathway – Warnervale Road (difference in width between footpath and cycleway)
R49-30	Off road cycleway – Full width (2.5m) between Louisiana Road & De Havilland Circuit and Peony Close to De Havilland Circuit
Channel C – dC8	Channel works

Item No: 2.14
Title: Provision of Sanitary Services - Contract
Department: Infrastructure Services
27 September 2022 Ordinary Council Meeting

Item No: 2.15
Title: Tree and Vegetation Replacement Maintenance Program
Department: Infrastructure Services
27 September 2022 Ordinary Council Meeting

1	CONFIDENTIAL - Procurement Plan - CPA/4158 Tree and Vegetation Replacement Maintenance Program -	Provided Under Separate Cover	D15099421
2	CONFIDENTIAL - Tender Evaluation and Recommendation Report - CPA/4158 Tree and Vegetation -	Provided Under Separate Cover	D15319812

Item No: 1.1
Title: Disclosure of Interest
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Item No: 1.2
Title: Confirmation of Minutes of Previous Meeting
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Item No: 1.3
Title: Notice of Intention to Deal with Matters in Confidential Session
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Item No: 2.7
Title: Planning Agreement - 259-269 and 275-281 Warnervale Road and 7 Dehavilland Circuit, Hamlyn Terrace
Department: Environment and Planning
27 September 2022 Ordinary Council Meeting

Item No: 2.8
Title: Child Safe Policy and commitment statement
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Item No: 2.11
Title: Community Support Grants Program - July 2022
Department: Community and Recreation Services
27 September 2022 Ordinary Council Meeting

Item No: 2.16
Title: Local Government NSW Annual Conference - Attendance and Voting
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Item No: 2.17
Title: Governance Lighthouse Report as at 30 June 2022
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Item No: 2.18
Title: Senior Staff Roles
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

Item No: 2.19
Title: CEO Performance Review
Department: Corporate Services
27 September 2022 Ordinary Council Meeting

1	CONFIDENTIAL - Central Coast CEO Performance Review 21/22 -	Provided Under Separate Cover	D15350513
2	CONFIDENTIAL 22-23 Central Coast CEO Performance Agreement -	Provided Under Separate Cover	D15350316