Post on 21-Dec-2015
Why
alla
City
Cou
ncil
BUDGET GOALSBUDGET GOALS
Reduce the Operating Deficit.Reduce the Operating Deficit. Asset Replace/Replenishment = Asset Replace/Replenishment =
to/ > Annual Depreciation to/ > Annual Depreciation expense.expense.
Control recurrent expenditure Control recurrent expenditure growthgrowth
Maintain Loans with in Borrowing Maintain Loans with in Borrowing Benchmark (20% of rates)Benchmark (20% of rates)
Ensure budget reflects Strategic Ensure budget reflects Strategic Plan and Ten Year Financial Plan Plan and Ten Year Financial Plan
Why
alla
City
Cou
ncil
OUTCOMESOUTCOMES
Operating deficit increasedOperating deficit increased Asset renewal/Replacement > Annual Asset renewal/Replacement > Annual
Depreciation.Depreciation. Recurrent expenditure increase: Recurrent expenditure increase:
13.6%. 13.6%. Loans = 12.57% of rate revenueLoans = 12.57% of rate revenue 6% Rate Increase Proposed (CPI is 6% Rate Increase Proposed (CPI is
4.2%).4.2%). Budget & Community Plan.Budget & Community Plan.
Why
alla
City
Cou
ncil
Civic Building UpgradeCivic Building Upgrade Road Reconstruction ProgramRoad Reconstruction Program Bradford Street Bradford Street City Plaza DevelopmentCity Plaza Development Airport secure car parkAirport secure car park
CAPITAL PROJECTSCAPITAL PROJECTS
Why
alla
City
Cou
ncil
CAPITAL PROJECTSCAPITAL PROJECTS
Whitehead StreetWhitehead Street Boat Ramp UpgradesBoat Ramp Upgrades Civic Park Arboretum Civic Park Arboretum Changeovers to Diesel FleetChangeovers to Diesel Fleet Foreshore Master Plan – Foreshore Master Plan –
Major infrastructure Major infrastructure commencedcommenced
Why
alla
City
Cou
ncil
STRATEGIC/STRATEGIC/GOVERNANCEGOVERNANCE
Community Plan Community Plan Remote Disaster Recovery FacilityRemote Disaster Recovery Facility Revised 10yr Long term Financial PlanRevised 10yr Long term Financial Plan 10 year Asset Management Plans10 year Asset Management Plans Extensive Policy ReviewExtensive Policy Review Staff Turnover 16%Staff Turnover 16% Trainee PositionsTrainee Positions
Why
alla
City
Cou
ncil
ENVIRONMENTENVIRONMENT
Mt Laura Conservation Reserve & Mt Laura Conservation Reserve & Environment UnitEnvironment Unit
Implementation of Waste StrategyImplementation of Waste Strategy Treated Effluent Pipe Network Treated Effluent Pipe Network
commissioned. commissioned. Sand Replenishment at foreshoreSand Replenishment at foreshore Asbestos RemovalAsbestos Removal
Why
alla
City
Cou
ncil
COMMUNITYCOMMUNITY
Commenced City Master PlanCommenced City Master PlanSport & Recreation needs Sport & Recreation needs AuditAuditNew Library concept plans New Library concept plans completedcompleted
Why
alla
City
Cou
ncil
CROSS FUNCTIONAL CROSS FUNCTIONAL ACHIEVEMENTSACHIEVEMENTS
Risk Management AwardRisk Management Award Grants commission funding Grants commission funding
increased by $36,714increased by $36,714 27% OHSW Rebate27% OHSW Rebate $37,409 Risk Management $37,409 Risk Management
Rebate Rebate Productivity saving $209,341Productivity saving $209,341
Why
alla
City
Cou
ncil
GENERAL GENERAL OPERATIONSOPERATIONS
Boundary extension DPA Boundary extension DPA approvedapproved
District Centre Zone DPA District Centre Zone DPA approvedapproved
Coastal & General DPA on Coastal & General DPA on consultationconsultation
Why
alla
City
Cou
ncil
GENERAL GENERAL OPERATIONSOPERATIONS
Approved Building works Approved Building works $50 million, 25% increase.$50 million, 25% increase.
Whyalla Industrial Estate – Whyalla Industrial Estate – Stage 1, 90% of land sold Stage 1, 90% of land sold
Approved various land Approved various land parcels for residential parcels for residential developmentdevelopment
Why
alla
City
Cou
ncil
TOURISM & TOURISM & VISITATIONVISITATION
Secured Motor Home Secured Motor Home conventionconvention
Snapper Competition.Snapper Competition.
Why
alla
City
Cou
ncil
BUDGET CHALLENGESBUDGET CHALLENGES Financial SustainabilityFinancial Sustainability Ageing InfrastructureAgeing Infrastructure Levels of serviceLevels of service EB obligations 5% wage rise EB obligations 5% wage rise Cost shifting to Local governmentCost shifting to Local government Increased legal requirements Increased legal requirements Staff retention & attractionStaff retention & attraction
Why
alla
City
Cou
ncil
BUDGET INITIATIVESBUDGET INITIATIVES
Efficiencies created in service Efficiencies created in service delivery through continuous delivery through continuous improvementimprovement
Ongoing review of non-core Ongoing review of non-core services services
Reserve funds used for capital Reserve funds used for capital works as opposed to loan funds – works as opposed to loan funds – reducing net interest marginreducing net interest margin
Reviewed equity of Rating systemReviewed equity of Rating system Increased Asset Sale incomeIncreased Asset Sale income
Why
alla
City
Cou
ncil
EXPENDITURE EXPENDITURE SUMMARYSUMMARY
ExpenditureExpenditure 2008/092008/09
Operating Exp Operating Exp
(less depreciation)(less depreciation)$ 17,991$ 17,991
DepreciationDepreciation $ 4,128$ 4,128
Capital Capital ImprovementImprovement
$ 23,725$ 23,725
Loan Principle Loan Principle pmtspmts
$ 1,751$ 1,751
To ReservesTo Reserves $ 1,039$ 1,039
TOTALTOTAL $ 48,634$ 48,634
$000$000
Why
alla
City
Cou
ncil
INCOME SUMMARYINCOME SUMMARY
INCOMEINCOME 2008/092008/09
Cash for Projects Cash for Projects brought fwdbrought fwd
$ 2,605$ 2,605
Other OperatingOther Operating $ 10,408$ 10,408
Capital Capital ImprovementImprovement
$ 18,254$ 18,254
Rates & Fixed Rates & Fixed ChargeCharge
$ 10,970$ 10,970
From ReservesFrom Reserves $ 6,476$ 6,476
TOTALTOTAL $ 48,713$ 48,713
$000$000
Why
alla
City
Cou
ncil
KEY PERFORMANCE KEY PERFORMANCE INDICATORSINDICATORS
06/0706/0707/007/0
8808/008/0
99
Operating Operating Surplus RatioSurplus Ratio
+ +
0-15%0-15%(4)%(4)% (5)%(5)% (7)%(7)% 6.%6.% 8.%8.%
Net Financial Net Financial Liabilities (000)Liabilities (000)
(181)(181) 1,7671,767 4,1504,150 5,3565,356 4,1164,116
Net Financial Net Financial Liabilities RatioLiabilities Ratio
<0% &<0% &
> 100%> 100%(1.0)(1.0)%%
9.5%9.5% 19.8%19.8% 23.323.3%%
20.9%20.9%
Interest cover Interest cover RatioRatio
10%10% (1.2)(1.2)%%
1.1%1.1% 0.8%0.8% 1.3%1.3% 1.9%1.9%
Asset Asset Sustainability Sustainability RatioRatio
100%100% 103103 127127 9494 85%85% 108%108%
09/1009/10
10/1110/11TargetTarget
Why
alla
City
Cou
ncil
OPERATING OPERATING STATEMENTSTATEMENT
Operating RevenueOperating Revenue 08/0908/09 07/0807/08 RatesRates 9,3479,347 8,523 8,523 Other RatesOther Rates 1,8181,818 1,524 1,524 Statutory ChargesStatutory Charges 438438 372 372 User ChargesUser Charges 3,0693,069 2,300 2,300 Operating Grants & SubsidiesOperating Grants & Subsidies 4,9754,975 5,015 5,015 Investment IncomeInvestment Income 210210 186 186 ReimbursementsReimbursements 131131 290 290 One Steel Ex-GratiaOne Steel Ex-Gratia 584584 ---- ---- OtherOther 792792 728 728 Total Operating RevenueTotal Operating Revenue 21,36421,364 18,93818,938
$000$000 $000$000
Why
alla
City
Cou
ncil
OPERATING REVENUE OPERATING REVENUE MIXMIX
Other6%
Waste Charge8%
OneSteel3%
Statutory Charges
2%
User Charges15%
Operating Grants & Subsidies
23%
General rates43%
Why
alla
City
Cou
ncil
OPERATING OPERATING STATEMENTSTATEMENT
Operating ExpensesOperating Expenses 08/0908/09 07/0807/08 Employee CostsEmployee Costs 7,633 7,633 6,712 6,712 Contractual ServicesContractual Services 3,406 3,406 3,324 3,324 MaterialsMaterials 1,843 1,843 1,577 1,577 Finance/Interest ExpensesFinance/Interest Expenses 439 439 339 339 DepreciationDepreciation 4,128 4,128 3,605 3,605 Other ExpensesOther Expenses 4,671 4,671 3,867 3,867 Total Operating ExpensesTotal Operating Expenses 22,12022,120 19,42419,424
Operating Surplus/(Deficit) Operating Surplus/(Deficit) before Capital Revenuesbefore Capital Revenues (756) (756) (486) (486)
$000$000 $000$000
Why
alla
City
Cou
ncil
OPERATING EXPENSE OPERATING EXPENSE MIXMIX
Employee Costs35%
Depreciation19%
Other21%
Interest Expense
2%
Materials8%
Contractual Services
15%
Why
alla
City
Cou
ncil
STRATEGIC PLAN STRATEGIC PLAN RELATIONSHIPRELATIONSHIP
Council’s expenditure has been Council’s expenditure has been assessed in terms of services assessed in terms of services and functions it providesand functions it provides
Service Profiles have been Service Profiles have been developed with budget detailsdeveloped with budget details
Service Profiles can be related Service Profiles can be related to Strategic Planning Goals to Strategic Planning Goals coming from the Community coming from the Community PlanPlan
Why
alla
City
Cou
ncil
STRATEGIC PLANNINGSTRATEGIC PLANNING
Community PlanCommunity Plan– Council GovernanceCouncil Governance– Economic ProsperityEconomic Prosperity– Environmental CareEnvironmental Care– Community WellbeingCommunity Wellbeing
Why
alla
City
Cou
ncil
COUNCIL COUNCIL GOVERNANCEGOVERNANCE
Personnel Management and Personnel Management and DevelopmentDevelopment– IRM implementation (Integrated IRM implementation (Integrated
Integrated Risk Management)Integrated Risk Management)– Ongoing staff trainingOngoing staff training– Governance projectsGovernance projects– Ongoing OHS, Balanced Scorecard Ongoing OHS, Balanced Scorecard
and Asset management programs and Asset management programs
Why
alla
City
Cou
ncil
COUNCIL COUNCIL GOVERNANCEGOVERNANCE
Information technologyInformation technology– PABX UpgradePABX Upgrade– Server ReplacementsServer Replacements– Various SoftwareVarious Software– Printers & ScannersPrinters & Scanners
Why
alla
City
Cou
ncil
ECOMOMIC ECOMOMIC PROSPERITYPROSPERITY
Roads and FootpathsRoads and Footpaths– Concrete footpath constructionConcrete footpath construction– Kerb replacement programKerb replacement program– Sealed roadsSealed roads– Roads to RecoveryRoads to Recovery– Asset Management programAsset Management program– Foreshore Master PlanForeshore Master Plan
Why
alla
City
Cou
ncil
ECONOMIC ECONOMIC PROSPERITYPROSPERITY
– New Library DevelopmentNew Library Development– Completion of Light Vehicles Completion of Light Vehicles
changeover to Dieselchangeover to Diesel– Finalise Civic Building UpgradeFinalise Civic Building Upgrade– Airport Terminal Building UpgradeAirport Terminal Building Upgrade– Airport Security CamerasAirport Security Cameras
Why
alla
City
Cou
ncil
ECONOMIC ECONOMIC PROSPERITYPROSPERITY
Economic Development Economic Development – WEDB Subsidy and co-operative action on WEDB Subsidy and co-operative action on
projectsprojects– Upper Spencer Gulf Common Purpose GroupUpper Spencer Gulf Common Purpose Group– Advancing WhyallaAdvancing Whyalla– Various Residential Property DevelopmentVarious Residential Property Development– Business IncubatorBusiness Incubator– Kingfish Harbour ConstructionKingfish Harbour Construction– Whyalla Industrial Park DevelopmentWhyalla Industrial Park Development
Why
alla
City
Cou
ncil
ENVIRONMENTAL ENVIRONMENTAL CARECARE
Environmental ManagementEnvironmental Management– Centralised IrrigationCentralised Irrigation– ASR FinalisationASR Finalisation– Asbestos Removal ProgramAsbestos Removal Program– Solar Rebate SchemeSolar Rebate Scheme– Renewable Energy ProjectsRenewable Energy Projects
Why
alla
City
Cou
ncil
ENVIRONMENTAL ENVIRONMENTAL CARECARE
Environmental ManagementEnvironmental Management– Landfill Transfer StationLandfill Transfer Station– Waste Cell ConstructionWaste Cell Construction– Pest plant controlPest plant control– WERIC WERIC – Clean up Australia dayClean up Australia day– Recycling promotionRecycling promotion
Why
alla
City
Cou
ncil
COMMUNITY COMMUNITY WELLBEINGWELLBEING
Visitation Promotion and Visitation Promotion and Development Development – Tourism advertising and marketing Tourism advertising and marketing – Maritime museum marketingMaritime museum marketing– Special eventsSpecial events– ConferencesConferences– Tourism signageTourism signage– Annual snapper competitionAnnual snapper competition
Why
alla
City
Cou
ncil
COMMUNITY COMMUNITY WELLBEINGWELLBEING
Parks and Recreation facilitiesParks and Recreation facilities– Various Solar LightingVarious Solar Lighting– Various Reserve Upgrades (Bradford, Various Reserve Upgrades (Bradford,
Loring, Norton, Barson)Loring, Norton, Barson)– Foreshore Playground Shade sailsForeshore Playground Shade sails
–
Why
alla
City
Cou
ncil
COMMUNITY COMMUNITY WELLBEINGWELLBEING
Community Services and Community Services and DevelopmentDevelopment– Donations and community grantsDonations and community grants– Community arts projectCommunity arts project– Youth weekYouth week– Whyalla Gift FoundationWhyalla Gift Foundation– Performing artsPerforming arts
– Active Community Field OfficerActive Community Field Officer
Why
alla
City
Cou
ncil
COMMUNITY COMMUNITY WELLBEINGWELLBEING
Community Services and Community Services and Development (cont)Development (cont)– Youth CouncilYouth Council– Donation to Reserve Cadet unitsDonation to Reserve Cadet units– Aged Care ContributionAged Care Contribution– Youth Development ContributionYouth Development Contribution
Why
alla
City
Cou
ncil
BUDGET BUDGET 2008/20092008/2009
Slight Cash budget surplusSlight Cash budget surplus Operating Deficit of $820KOperating Deficit of $820K 6% Rate increase in light of recent 6% Rate increase in light of recent
Financial Sustainability inquiry (CPI Financial Sustainability inquiry (CPI 4.2%) - halved rate increase above 4.2%) - halved rate increase above CPICPI
Maximise funding of capital works Maximise funding of capital works and strategic planning prioritiesand strategic planning priorities
Retention of all servicesRetention of all services
Why
alla
City
Cou
ncil
FUTURE CHALLENGESFUTURE CHALLENGES
Managing the Infrastructure Funding GapManaging the Infrastructure Funding Gap Achieving an operating surplusAchieving an operating surplus Contain costs and review services in light Contain costs and review services in light
of financial sustainabilityof financial sustainability Completion of 10 year asset plan Completion of 10 year asset plan Adequate support for sustainable Adequate support for sustainable
development due to the exploration boom.development due to the exploration boom. Governance, Risk ManagementGovernance, Risk Management Staff succession planningStaff succession planning
Why
alla
City
Cou
ncil
RATING STRATEGYRATING STRATEGY
Regional Centre ZoneRegional Centre Zone Industrial LandIndustrial Land ShacksShacks
Why
alla
City
Cou
ncil
RATES INCREASE 6% RATES INCREASE 6% WHAT IT WHAT IT REALLYREALLY
MEANSMEANS
An overall increase in rate revenueAn overall increase in rate revenue Individual Property LevelIndividual Property Level
– CategoryCategory– Land ValuationLand Valuation– Rebate & ConcessionsRebate & Concessions
Other ChargesOther Charges– NRM LevyNRM Levy– Refuse ChargeRefuse Charge– Fixed ChargeFixed Charge
Why
alla
City
Cou
ncil
RATE HOT SPOTSRATE HOT SPOTS
TypeType Site Site Value Value 06/0706/07
Site Site Value Value 07/0807/08
RatesRates
06/0706/07Rates Rates
07/0807/08% % ChangeChange
BusinesBusinesss
3250032500
5400054000
1300013000
6500065000
7000070000
2600026000
23112311
36513651
10961096
24642464
26322632
11541154
6.61%6.61%
-27.9%-27.9%
5.22%5.22%
IndustrIndustryy
179000179000
2650026500
1600016000
360000360000
5300053000
3200032000
86828682
15291529
10371037
1237612376
20612061
13551355
42.55%42.55%
34.75%34.75%
30.7%30.7%
ResidenResidentt
6500065000
4850048500
1850018500
8400084000
118000118000
3200032000
10941094
889889
516516
987987
12741274
549549
-9.74%-9.74%
43.28%43.28%
6.42%6.42%
ShacksShacks 100000100000
9600096000
8000080000
140000140000
126000126000
100000100000
415415
409409
389389
598598
566566
507507
44.22%44.22%
38.26%38.26%
30.37%30.37%