Annual Business Plan and Budget Process

Transcription

1 94 AGENDA ITEM NO.: 19.2 TO: Council Meeting on 22 September 2015 DIRECTOR: REPORT AUTHOR: SUBJECT: Ginny Moon, Director Corporate Services Chris Birch, Manager Financial Services Annual Business Plan and Budget Process 1. EXECUTIVE SUMMARY 1.1 The Annual Budget process is an extended project requiring input from all parties. This includes staff, Elected Members, ratepayers and the community at large. It is developed over an approximate eight month period. 1.2 In order to assist with the scheduling of this process a timeline of the process has been developed. 2. RECOMMENDATION (1) Council adopts the proposed timetable for the development of the Annual Business Plan as summarised in Attachments 1-3 of this report. (2) Council adopts the following format of community consultation in line with Council s Community Engagement Policy Level 2, regarding the Draft Annual Business Plan: 1. Public Meeting 2. Focus Group 3. Feedback Form 4. On-line Panel 5. Prospect Residents Association 6. Primary School Careers Day 3. RELEVANCE TO CORE STRATEGIES / POLICY 3.1 The Annual Budget for underpins the Long Term Financial Plan, Infrastructure and Asset Management Plan, Strategic Plan and Annual Business Plan. 3.2 Local Government Act 1999 S.123 Annual Business Plans and Budgets. 4. COMMUNITY INVOLVEMENT 4.1 The timetable proposed includes community consultation regarding Council s Annual Business Plan

2 95 5. DISCUSSION 5.1 Informal feedback received following the budget process suggested that Elected Members were comfortable with the budget process, in terms of timeframes provided. 5.2 This report seeks Council endorsement of the proposed timetable for the budget process, which is summarised in Attachments It is proposed that Elected Members participate in a series of Council Workshops from January 2016 through to June 2016, to discuss the following matters: Review the service standards and budget (capital, projects and operating) for each of the four directorates Review Council s current Financial Sustainability Status, Council s Long Term Financial Plan parameters and Operating Project and Capital Project program over the ten year period Review Council s long-term financial key performance indicators and associated targets Review items to be included/excluded from the Operating Projects Review rates modelling and analysis. 5.4 The Local Government Act 1999 requires councils to develop, consult and publish a Long Term Financial Plan (LTFP) and Infrastructure and Asset Management Plan (IAMP) as part of its Strategic Management Plans, both covering a ten year period as a minimum. In addition, Council is required to consult the community on its Annual Business Plan which includes its Budget and Rating Strategies. 5.5 City of Prospect Strategic Plan identifies Council s current core strategies, measures and actions. The LTFP and IAMP identify various projects and capital expenditure items that will assist with achieving strategic plan outcomes. 5.6 The budget timetable has been drafted assuming the completion of the Strategic Plan in line with its own current timeline. Assuming this, the Strategic Plan will be updated to the Draft Annual Business Plan prior to community consultation. 5.7 Council s LTFP has evolved over the last ten years and is based on a number of assumptions. The assumptions of the LTFP will be refined and agreed with Council as part of this process. These assumptions will include increases in revenue (including rating revenue), increase in expenses and other funding options, as well as projections for Consumer Price Index/Local Government Price Index increases. 5.8 Similarly, Council s IAMP will be updated and presented to Council. The IAMP will clearly link to the LTFP.

3 The Draft Annual Business Plan (ABP) will be subsequently revised to reflect the revised LTFP and IAMP. The capital and operating projects of the Draft ABP will be discussed during the first of many Council Workshops in March The Workshops will provide Council with an opportunity to consider its budget and rating practices for prior to commencing community consultation. The budget implications associated with preferred rating options will be incorporated into the Draft ABP The Draft ABP will then be formally considered at the April 2016 Council Meeting, prior to community consultation commencing The Long Term Financial Plan, Infrastructure Assets Management Plan, Annual Business Plan and Budget are to be formally adopted by Council in June 2016, following Council s consideration of community feedback obtained through the consultation process. Community Consultation 5.12 The public consultation process for the budget will largely be in line with the process undertaken for As it is expected that the Draft Strategic Plan will be under consultation at Tourrific Prospect, it is proposed to not duplicate the consultation with the Budget Feedback from the Strategic Plan may hold relevance for consideration in the early considerations of the Budget deliberations Following the success of the consultation workshops/carers days in the past two years with local primary schools, it is proposed to further expand this targeted consultation process for Once Council approves the Draft Annual Business Plan to go out for community consultation, it is proposed that the following notification and format of consultation will take place: First advertisement City North Messenger to be published as soon as possible after the April Council Meeting. This is to advise the public about an up-coming Public Meeting to be held in May Both the Full and Summary versions of the Draft ABP for and frequently asked questions list are to be made available on Council's website and hard copies of the documents to be made available at both Civic Centre and Thomas Street Centre (Library) At least two subsequent advertisements to be published leading to the date of the Public Meeting Feedback form published on Council s website. Again allowing a mechanism for acknowledging public submissions and response to queries Consult the community via Community On-Line Panel Meet with the Prospect Residents Association Conduct a Careers Day with at least one local primary school incorporating a budget activity Conduct Public Meeting in late May 2016 (tentatively scheduled for 7:00pm Tuesday, 31 May 2016).

4 Conduct a Focus Group Meeting with 20 attendees independently sampled across Council. ATTACHMENTS Attachments 1-3: Draft Annual Business Plan (Budget) Timetable

5 Attachment DRAFT ANNUAL BUSINESS PLAN (BUDGET) SCHEDULE The following is the proposed timetable for developing the Budget Schedule. Actions Dates Submit Budget Schedule & Process to Council for consideration. 22/10/15 Update/refine the Long Term Financial Plan (LTFP) & the Infrastructure and Asset Management Plan (IAMP). Executive Mgt Team & Leadership Group to prepare Draft Budget. Executive Mgt Team & Leadership Group to determine End of Year projections and any material variations of the Budget. Variations to be considered in the Second Quarter Budget Review. Prepare Salaries/Loan/Depreciation/Update Annual Business Plan. Collate, update and verify Budget Worksheet, Revise and Update Draft Long Term Financial Plan, 10 Year Infrastructure and Asset Management Plan and Annual Business Plan. Distribution to Leadership Group for their completion. Draft Annual Business Plan (Budget, Asset Management Plan, Long Term Financial Plan) be submitted to Executive Mgt Team & Leadership Group for deliberation. Revise and update Draft Annual Business Plan to incorporate Executive Mgt Team & Leadership Group feedback Prepare/Finalise documents for informal meeting of Council including:- Draft Annual Business Plan Draft 10 Year Financial Plan Draft 10 Year Infrastructure & Asset Management Plan Council Workshops to review the following:- Review the service level standards and budget (capital, projects and operating) for each of the four directorates. Review Council s current Financial Sustainability Status, Council s Long Term Financial Plan parameters and Operating Project and Capital Project program over the 10 year period. Review Council s long-term financial key performance indicators and associated targets. Attachment Consider overall increase in Rates Revenue and its impact on the Long Term Financial Plan Nov Dec 15 2/11/15 11/12/15 2/11/15 11/12/15 2/11/15 4/12/15 15/12/15 29/01/16 2/02/16 27/02/16 1/03/16 18/03/16 2/02/16 9/02/16

6 Attachment 2 9 Actions Dates Council Workshops to consider:- Draft Annual Business Plan Draft 10 Year Long Term Financial Plan Draft 10 Year Infrastructure & Asset Management Plan Recurrent Budget Outcome of workshop is to finalise the indexation parameters that the draft documents will be built on. Council Workshops to consider:- Operating Projects Capital Projects Draft Rating Strategy Outcome of workshop is finalise the projects and rating strategy for Council to endorse proceeding to public consultation (in line with Community Engagement Policy) and that further deliberation of the plans be undertaken in June following consultation. The report to Council will include the proposed method of community consultation for Council s endorsement. Rates Modelling updated with valuations progressively for revisits and growth Council to endorse the Draft Annual Business Plan for Community Consultation Commencement of Community Consultation Advertise to give 21 days notice of Public Meeting (must be 21 days after Messenger notice). Ensure all budget documents for the public are ready when the first advertisement appears in the Messenger Obtain Valuation Data and run rate scenarios agreed to at March/April meeting of Council Key Assumptions:- Valuer General s data available mid April. Community Consultation (min. 6 weeks) Consultation includes:- Public Meeting Focus Group Meeting Survey Feedback On-Line Panel Primary School Carers Day Attachment Public consultation on Draft Annual Business Plan and Budget (s123(3(b))) 2/03/16 9/03/16 8/03/16; 5/04/16; 12/04/16 April - May 2016 April Council Meeting 26/04/16 First Advert: Messenger Paper 4/05/16 April 2016 Focus Group 18/05/16 Public Meeting 31/05/16

7 Attachment Actions Dates Closing Date of Community Feedback/Public Submissions 2/06/16 Council Workshop to consider : Rates Modelling with latest valuation data Second/Third Council Workshop to consider Draft Annual Business Plan, taking into account:- community feedback regarding the Draft Annual Business Plan To fine tune the Draft Budget To consider the adoption of the Annual Business Plan 10/05/16 14/06/16 Council adopts/declares Annual Business Plan 28/06/16 Attachment