Program Budget 2015/2016

Transcription

1 Program Budget 2015/2016

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3 INDEX MAYOR S INTRODUCTION 1 CHIEF EXECUTIVE OFFICER S SUMMARY 2 BUDGET PROCESS LINKAGE TO COUNCIL PLAN SERVICES, INITIATIVES AND SERVICE PERFORMANCE INDICATORS BUDGET INFLUENCES ANALYSIS OF OPERATING BUDGET ANALYSIS OF BUDGETED FINANCIAL POSITION ANALYSIS OF BUDGETED CASH POSITION ANALYSIS OF CAPITAL BUDGET STRATEGIC RESOURCE PLAN AND KEY FINANCIAL INDICATORS RATING STRATEGY LONGER TERM STRATEGIES 66 OVERVIEW TO APPENDICES 68 APPENDIX A 69 APPENDIX B 82 APPENDIX C 96 APPENDIX D 98 APPENDIX E 100 APPENDIX F 123 APPENDIX G 126 APPENDIX H 129 APPENDIX I 136 APPENDIX J 141 APPENDIX K 143

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5 MAYOR S INTRODUCTION The 2015/16 budget is the third budget of this Council term and consolidates Council s financial position with the lowest rate rise in nine years, continued low debt and operating costs maintained at current levels. The budget focuses on achieving the Council s vision, Campaspe a vibrant place to live, grow and visit, with a thriving, diverse and healthy lifestyle. The budget is in line with the 15-year long term financial plan whilst remaining firmly focused on the short and medium term needs of our community and responding appropriately to key pressures and challenges. Community feedback on affordability was top of mind for Council in the development of this budget, in particular a desire for lower rate increases raised by our ratepayers over the past few years. Accordingly, Councillors have been working with the organisation to identify and implement savings and efficiency initiatives. This work has achieved over $1.6 million of identified savings allowing Council to reduce the 6% rate increase set out in the long term rating strategy, down to 5%, while continuing to support the important long term objectives. Council has been keenly focused on asset renewal since 2007, seeking to close the gap in annual funding required each year. The budget contributes a further $399,000 to this goal. However, there is still a need to address the asset renewal backlog that is forecast to grow to approximately $24 million in 10 years. Council is mindful of the introduction of rate capping by the Victorian Government in 2016/17. Council recognises that rate capping will impact the implementation of long term financial strategies such as the asset renewal funding strategy and financial sustainability review. Council has retained its commitment to these important initiatives in this budget while recognising that in future financial years, they will need to be reviewed along with general service delivery. Council continues its commitment to the transformation of its operations based on the implementation of new corporate information and communication technology (ICT) systems. The inspire program, which implements Council s adopted ICT strategy, will see the deployment of the OneCouncil solution across the organisation. This allows standardised systems and tools across operations to achieve greater efficiencies and savings. Council is also pleased that through the delivery of the inspire program, customers will be able to access Council services through a modern online interface, at times and places that are convenient to them. These improvements will start being available to the community by the end of The large scale Capital Works program is similar to recent years, with this budget supporting the delivering of $25 million worth of works on the ground. Important road network funding from the Commonwealth Government through the Roads to Recovery program has been increased, with an additional one-off payment boosting this contribution to $4.094 million, from $2.015 million in 2014/15. This increase has been welcomed as the Victorian Government has ceased the Country Roads and Bridges program, reducing road funding to Council by $1 million compared to last year. The budget supports a number of community initiatives, identified or informed by the 20-year strategic plan - Campaspe: Our Future, as well as the Council Plan and other strategic plans. This budget allocates funding for a number of streetscapes and amenity projects, such as the Kyabram Allan Street fountain. Further improvements have been made to this document to continue to align with the local government model budget, a Victorian Government best practice guide, to provide the community with an improved understanding of Council s financial management. CR LEIGH WILSON MAYOR PROGRAM BUDGET /16 P a g e 1

6 CHIEF EXECUTIVE OFFICER S SUMMARY Council has prepared a budget for the 2015/16 year which seeks to balance the demand for services and provision of infrastructure with the community s capacity to pay. The overview provides a quick look at the key features of the budget in terms of rate increase, operating result, service levels, cash and investments, capital works, financial position, financial sustainability and the strategic objectives of Council. Council s annual budget seeks to meet the needs of the upcoming year as well as supporting the pursuit of long term important priorities. In doing so, Council has in mind the ratepayers of today and the circumstances that will be inherited by ratepayers in the future. In response to the financial challenges facing Victorian councils of the freezing of the Financial Assistance Grants for 2014/15, 2015/16 and 2016/17 by the Federal Government and the affordability concerns raised by our community, Councillors and officers commenced work in early July 2014 on savings and efficiency initiatives. While the rigorous and constructive work undertaken by Councillors and officers in the pursuit of savings has delivered a positive result, further work needs to be done to ensure that Council can continue minimising cost increases for the community, particularly in light of the State Government s introduction of rate capping in the 2016/17 financial year and the removal of Country Roads and Bridges program. Accordingly, we will continue our pursuit of cost reductions and savings in the year ahead as well as vigorously reviewing Council services and the method and resources used in their delivery. Of the 5% rate increase, half ($0.761 million) pertains to matters other than the annual increase in Council s existing operational costs. This includes Council s commitment to lifting its funding to meet the annual asset renewal requirement ($399,000) and meeting new mandated growth and compliance matters ($362,000). Taking these matters into account, shows our cost management is enabling Council to address these important priorities whilst keeping the impact on our ratepayers to a minimum. Once again Council is seeking to deliver a large capital works program exceeding $25 million. This scale of delivery is similar to recent years and we are well positioned to successfully put these projects on the ground for our community. Council has reaffirmed its strategic direction through Campaspe: Our Future and the Council Plan. Our organisation remains focused on supporting Council in achieving its objectives. We have a strong commitment to customer service and cost management which will be critical in future years. I thank our Councillors and Council staff for the ongoing commitment and their hard work in preparing this budget. Rates It is proposed that general rates increase by 5% for the 2015/16 year, raising total rates of $ million. The 5% increase is lower than the previous eight years and in line with that foreshadowed in Council s Long Term Financial Plan (LTFP) and Strategic Resource Plan. The rate increase for the 2014/15 year was 6%. P a g e 2 PROGRAM BUDGET /16

7 Council has also assumed an additional $100,000 to be received via supplementary rates throughout the year. Supplementary rates are receivable when new rateable land or land improvements are identified throughout the year and are not raised at the time of generating annual rate notices. The amount of rates raised allows Council to maintain service levels and deliver a significant capital works program. Net Result Net Surplus/(Deficit) The expected net result for the 2015/16 year is a surplus of $6.961 million, which is an increase of $6.803 million from the 2014/15 forecast surplus of $0.158 million. Significant external capital funding ($6.746 million for 2015/16) makes comparison at a net surplus level difficult as the amount of external funding varies year on year. The forecast adjusted underlying result (after accounting for one off items) for 2014/15 is a surplus of $0.052 million against a 2015/16 budget deficit of $1.870 million which is discussed in detail below. Adjusted Underlying Net Result Council is committed to achieving benefits from implementation of the ICT Strategy and ongoing Financial Sustainability Reviews (including the Rural Road Review). These benefits are anticipated to be significant and are central to Council returning to an operating surplus in the future but are not fully reflected in the above graphs. The adjusted underlying net result, which is a measure of financial sustainability, shows a decreasing deficit over the four year period. PROGRAM BUDGET /16 P a g e 3

8 Recurrent EBITDA 20,000 18,000 17,681 18,991 $000's B 16,000 14,000 15,343 15,542 16,291 12,000 10,000 8,000 F2014/15 B2015/16 SRP2016/17 SRP2017/18 SRP2018/19 In order to respond to increasing challenges identified within the operating result, Council has chosen to use Recurrent EBITDA (earnings before interest, tax, depreciation and amortisation) as a measure of underlying financial sustainability which better represents core operations. This approach is illustrated in Appendix A.5 (page 74) with the inclusion of a Performance Statement for Council. Recurrent EBITDA is showing steady growth over the forward plan period. Maintaining this growth is critical to financial sustainability and is a key target in setting the budget. Service Delivery Net Cost $ millions 0 60,000 50,000 40,000 30,000 20, % 2.14% 2.42% 46,079 46,071 46,755 47,757 48,911 10,000 0 F2014/15 B2015/16 SRP2016/17 SRP2017/18 SRP2018/19 The net cost of services delivered to the community for the 2015/16 year is expected to be $ million (refer to Section 2 for further detail). The net cost of services is the cost to Council net of user fees and grants directly linked to service delivery. The percentages shown in the graph illustrate the growth in the net cost each year. Based on the current long term financial plan assumptions, net cost to Council will continue to increase. The net cost of service delivery is funded through general revenue. P a g e 4 PROGRAM BUDGET /16

9 Unallocated Cash Unallocated Cash refers to the cash available at year end after all Council obligations are met. It is useful to consider Council s Unallocated Cash position in conjunction with the expected net surplus/(deficit) which includes a number of noncash and one off items. The position over the previous three years is illustrated above. Council has developed the 2015/16 budget with a view to achieving a cash balanced outcome. The large variance between 2013/14 and 2014/15 is driven mainly by the changes to the Grants Commission payment received within those financial years. Accumulated Unallocated Cash 5,000 4,000 2,201 Interest income contribution 947 $000's 3,000 2,000 1, ,783 2,693 3,158 2,449 1,070 A2012/13 A2013/14 F2014/15 B2015/16 Accumulated Unallocated Cash refers to the accumulation of prior year Unallocated Cash. Accumulated Unallocated Cash comprises the prior year closing balance plus the forecast Unallocated Cash for the current financial year, including interest income contribution, less any progressive allocations made by Council through 2014/15. PROGRAM BUDGET /16 P a g e 5

10 Cash and Investments Cash and investments are expected to decrease by $1.471 million during the year to $ million as at 30 June 2016 due to continued high level of capital works delivered. Planned Capital Works Spend The capital works program estimated spend for the 2015/16 year is $ million of which $7.355 million relates to projects commenced in the 2014/15 year. The carried forward component is fully funded from previous budgets. The planned 2015/16 expenditure represents another significant delivery program in line with the prior years. The 2015/16 budget includes a $ million commitment to works to be directly funded within Council s Capital Works Program. Council has maintained its commitment to renewing existing assets where they support ongoing services. The 2015/16 budget includes $ million of new funding allocated to asset renewal projects in accordance with Council s Asset Renewal Funding Strategy. This includes $4.094 million in Federal Government Roads-to-Recovery funding. Council has enhanced its capital works program this year by introducing a prioritisation matrix to assess project candidates for new and upgrade works. This enhancement is in response to an internal audit recommendation. P a g e 6 PROGRAM BUDGET /16

11 Council s budget and future financial planning is based on planning capital expenditure at a level that exceeds the new funds allocated to capital projects in the same year. This is able to be achieved by allocating direct-funding as well as drawing on previously allocated cash already held for those projects and other related strategies. Asset Renewal Funding Strategy This is the ninth consecutive budget in which Council has implemented its adopted strategy to incrementally provide additional funding to the renewal of assets. The methodology is based on allocating renewal funding equal to a target percentage of Average Annual Asset Consumption (AAAC), The AAAC is a financial term that reflects the average rate at which Council s asset base deteriorates in condition over a year. Council also uses a six year average increase in order to achieve a smooth rise. This budget sees an increase of $0.896 million in allocated funding by Council bringing the total asset renewal allocation to 87.5% of Average Annual Asset Consumption (including external contributions). In addition there is an element of extra renewal funding due to Council s decision in 2014/15 to include a 0.5% rate increase specifically to address Council s asset renewal backlog which is also included in the graph above. External contributions relate to Roads to Recovery, $4.094 million. Future years sees a reduction in external contributions resulting in less than 20% of the annual asset renewal demand being provided externally. This was a base premise of the asset renewal funding strategy. If external funding does not increase in future years, the 100% gap will not be met. However Council is on track to achieve 80% council contribution by 2020/21 in accordance with the strategy and financial principle 4. This strategy is planned to be reviewed in 2015/16. Council has established strong financial principles for funding renewal projects and has ensured that savings or unexpended funds from renewal projects are returned to the asset renewal reserve. These unallocated renewal funds can then be allocated to the delivery of other high priority asset renewal projects and are typically brought out onto high priority renewal projects throughout the year. PROGRAM BUDGET /16 P a g e 7

12 Asset Renewal Backlog 80 Total Assets at Intervention ($M) - Start of Year Annual Renewal Allocation ($M) 70 $Million July in Year The Asset Renewal Backlog (unfunded assets at intervention) chart above is based on the value of assets that have been identified or estimated to be at intervention at this point in time together with forecasts for the value of assets reaching intervention in each of the next 10 years. The column chart data shows the value of assets expected to require renewal each year while the line chart data indicates the forecast annual renewal funding allocation. The difference between the top of each column and the corresponding line data point is the value of assets that require renewal that are not able to be funded in a given year. The value of these unfunded assets requiring renewal is often referred to as the asset renewal backlog and, at July , this is forecast to be $16.72 million. Based on the current long term financial plan the asset renewal backlog in July 2025 is forecast to grow to approximately $23.99 million. In the 2014/15 budget this backlog was forecast to be 51.6 million by July 2020/23. The significant change is due to improved condition data analysis, asset data corrections and reclassifying of assets. Council is progressively collating additional and improved data and completing condition assessment on all of its assets. Financial Position (working capital) Net current assets (working capital) will reduce by $2.118 million to $ million as at 30 June This is mainly due to the use of cash to fund the capital works program. Council includes non-current financial assets in the working capital calculation as these assets can be called upon at any time during the year. P a g e 8 PROGRAM BUDGET /16

13 Debt Management New borrowings are included in this budget and relate to the ICT Strategy implementation of $0.516 million. The 2015/16 budget sees Council continuing its low debt level, at $8.608 million, being 26.5% of Rate Revenue (a commonly referred to industry indication, with the recommended prudential guideline to be within 60%). After taking into account Council s Accumulated Unallocated Cash of $3.309 million, Council s Net Debt is $5.299 million, or 16% of Rate Revenue. Council Expenditure Allocations Commercial Community and Family Services $7.18 $7.28 $8.73 Corporate Support $17.79 Debt Management Economic Development $28.68 $7.28 $0.68 $2.51 $6.32 Governance Recreation Roads and Bridges $13.54 Satutory Services Waste and Environmental Services The above chart provides an indication of how Council allocates its expenditure across the main services that it delivers. It shows how much is allocated to each service area for every $100 that Council spends. PROGRAM BUDGET /16 P a g e 9

14 Long Term Financial Plan Council s budget is developed in the context of the Long Term Financial Plan which is driven by objectives contained in Council s Financial Planning Principles. The Long Term Financial Plan and Financial Planning Principles are reviewed during budget development and periodically throughout the year to provide Council the most relevant forward planning tools. The Long Term Financial Plan spans the next 15 years and is provided as Appendix K (page 143). This budget has been developed through a rigorous process of consultation and review and management endorses it as financially responsible and balances the upcoming year and Council s long term requirements and objectives. Council has a significant responsibility for the stewardship and governance of the assets entrusted to it and this is embodied in the 2015/16 budget. The key items and principles have been included in this summary, with more detailed budget information available throughout the document 2015/16 budget. JASON RUSSELL CHIEF EXECUTIVE OFFICER P a g e 10 PROGRAM BUDGET /16

15 BUDGET PROCESS This section lists the budget processes to be undertaken in order to adopt the Budget in accordance with the Local Government Act 1989 (the Act) and Local Government (Planning and Reporting) Regulations 2014 (the Regulations). Under the Act, Council is required to prepare and adopt an annual budget for each financial year. The budget is required to include certain information about the rates and charges that Council intends to levy as well as a range of other information required by the Regulations which support the Act. The 2015/16 budget, which is included in this report, is for the year 1 July 2015 to 30 June 2016 and is prepared in accordance with the Act and Regulations. The budget includes financial statements being a budgeted Comprehensive Income Statement, Balance Sheet, and Statement of Changes in Equity, Statement of Cash Flows and Statement of Capital Works. These statements have been prepared for the year ended 30 June 2016 in accordance with the Act and Regulations, and consistent with the annual financial statements which are prepared in accordance with Australian Accounting Standards. The budget also includes information about the rates and charges to be levied, the capital works program to be undertaken, the human resources required, and other financial information Council requires in order to make an informed decision about the adoption of the budget. In advance of preparing the budget, Officers firstly review and update Council's long term financial projections. The preparation of the budget, within this broader context, begins with Officers preparing the operating and capital components of the annual budget during February and March. A draft consolidated budget is then prepared and various iterations are considered by Council at informal briefings during March and April. A proposed budget is prepared in accordance with the Act and submitted to Council in May for approval in principle. Council is then required to give public notice that it intends to adopt the budget. It must give 28 days notice of its intention to adopt the proposed budget and make the budget available for inspection at its offices and on its internet web site. A person has a right to make a submission on any proposal contained in the budget and any submission must be considered before adoption of the budget by Council. To assist interested persons to understand the budget and make a submission if they wish, Council officers undertake a community engagement processes including a public information session, focus groups and other techniques. The final step is for Council to adopt the budget after receiving and considering any submissions from interested parties. The budget is required to be adopted by 30 June and a copy submitted to the Minister within 28 days after adoption. The key dates for the budget process are summarised below: Budget Process Timing Officers review Council s Financial Planning Principles January 2015 Officers update Council s Long Term Financial Plan February 2015 Officers prepare operating and capital budgets February - April 2015 Council considers proposed budget at informal briefings April 2015 Proposed budget submitted to Council for approval May 2015 Public notice advising intention to adopt budget May 2015 Budget available for public inspection and comment May/June 2015 Community engagement process undertaken May/June 2015 Submission period closes (28 days) June 2015 Submissions considered by Council June 2015 Budget presented to Council for adoption June 2015 Copy of adopted budget submitted to the Minister July 2015 Revised budget where a material change has arisen September 2015 to June 2016 PROGRAM BUDGET /16 P a g e 11

16 1. LINKAGE TO COUNCIL PLAN This section describes how the Program Budget 2015/16 links to the objectives of the Council Plan within an overall planning framework. This framework assists Council to consider the long term, medium term and short term objectives in its decision making. 1.1 STRATEGIC PLANNING AND REPORTING FRAMEWORK The Strategic Resource Plan (SRP), included in the Council Plan, is a rolling four year plan that outlines the financial and non-financial resources that Council requires to achieve the strategic objectives described in the Council Plan. The Annual Budget is then framed within the Strategic Resource Plan, taking into account the services and initiatives included in the Annual Budget which contribute to achieving the strategic objectives specified in the Council Plan. The diagrams below depict the planning and accountability framework that applies to local government in Victoria. P a g e 12 PROGRAM BUDGET /16

17 The timing of each component of the planning framework is critical to the successful achievement of the planned outcomes. The Council Plan, including the Strategic Resource Plan, is required to be completed by 30 June following a general election and is reviewed each year in advance of the commencement of the Annual Budget process. 1.2 OUR PURPOSE Campaspe: Our Future is a long-term strategic plan for the future of our community which has been developed in direct response to community input. Our community has described its vision for the future as follows: We want to be strong, supportive, vibrant and sustainable. The plan sets out what the community, business, industry, Council and others can do to deliver the future the community wants, recognising that the realisation of the vision will also be affected by external factors, such as the economy and state and federal government decisions. For Council, the plan will inform the development and implementation of all strategic and operational plans to ensure all Council activities are delivering on the community s vision for the future. The Council Plan reinforces Council's commitment to listening and discussing with the community the things that matter and how Council can make a difference. We approach ongoing consultation seriously to ensure the community s views, ideas and aspirations are integrated into our forward planning and everyday activities, as well as in the evaluation of these activities and Council s services. Council s Vision: To be a vibrant place to live grow and visit, with a thriving, diverse and healthy lifestyle. Vision Thriving Diverse Healthy What it means We have a great opportunity, with prosperous businesses and happy communities Our varied communities and environments make Campaspe a place for all kinds of people We are active, connected and well and care for our natural, urban and rural surroundings Our Mission: We will improve the lives of people in our community. Our values Our Community Our Reputation Our Future Our People Our Delivery What it means We seek to understand and realise our community s aspirations, balancing individual and overall benefit. We are known as leaders who address important issues, using a constructive approach and who can be relied upon to honour our commitments. We demonstrate sustainability in our decisions for the benefit of today and tomorrow.. We achieve great things for our organisation and our community by caring for and supporting our people. We set clear goals, measure results and seek to improve, with the courage to raise issues and build capacities that underpin our delivery. PROGRAM BUDGET /16 P a g e 13

18 1.3 STRATEGIC OBJECTIVES Council has structured its strategic objectives within the three community outcomes of Prosperity, Place and People. Additionally, objectives are articulated for the organisation which ultimately supports the delivery of the Council Plan objectives. Community Outcomes Prosperity Place People Organisational Support Description The Shire of Campaspe is committed to supporting and promoting a vibrant and thriving economy. Through strong support and partnership with businesses in such areas as tourism, building development, agriculture, food processing and manufacture, Council seeks to assist and drive a prosperous environment. The Shire of Campaspe is endowed with an abundance of beautiful historic buildings and attractive townships. We have a pride in heritage aspects of our Shire and the appearance of our public places and facilities. Council adopts environmentally sound practices to protect and enhance our unique environment, whilst our land use management must be wisely planned and implemented. Supporting a vibrant and diverse community, Council actively encourages community participation and engagement in the arts and cultural life of the Shire. Community involvement is encouraged in planning and evaluating Council activities and the long term vision of the Shire. Council services strive to provide quality services in the areas of most need and enhance the wellbeing of the community. Council also provides support to many agencies involved in service delivery. The organisation aligns its resources to the objectives of the Council Plan. It strives to achieve cost-effective service delivery that meets the needs of the community. Many service areas are highly visible to our community, but there is equal commitment from staff that support internal customers as they go about their day-to-day business delivering to the community. In all things the organisation has a commitment to building a prosperous Campaspe community now and into the future. P a g e 14 PROGRAM BUDGET /16

19 2. SERVICES, INITIATIVES AND SERVICE PERFORMANCE INDICATORS This section provides a description of the functions / services and initiatives to be funded in the Budget for the 2015/16 year and how these will contribute to achieving the strategic objectives specified in the Council Plan as set out in Section 1. It also includes a number of initiatives, major initiatives and service performance outcome indicators. The Strategic Resource Plan (SRP) is part of and prepared in conjunction with the Council Plan. The relationship between these components of the Budget and the Council Plan, along with the link to reporting in the Annual Report, is shown below. PROGRAM BUDGET 2015/16 Page 15

20 2.1 PROSPERITY Functions / Services Council supports the prosperity of its community at many levels. It advocates on behalf of industry as it faces change, brings businesses together through facilitating network opportunities, and links businesses to opportunities to export outside of the region. Functions Description Revenue (Expenditure) (Net Cost) Economic Development Assists in creating an environment that supports existing business and new enterprise through the provision of information, assistance, referral and support. Council services also aid improved communication links, knowledge sharing and partnerships by facilitating forums, business networks and discussion. 1 (820) (819) Tourism and Events Development Assists in facilitating and supporting the growth of a sustainable tourism and events sector, through advocacy, strategic partnerships and strategic planning for tourism growth. 0 (1,218) (1,218) Economic Infrastructure To ensure appropriate infrastructure is available to facilitate economic development of business and industry including direct ownership and management of the Echuca Aerodrome, Echuca and District Livestock Exchange, and the Port of Echuca Precinct, moorings and marinas. 601 (734) (133) Commercial Activities Ensures that Council s commercial enterprises and commercially leased facilities are being managed in an efficient and effective manner, achieving the outcomes nominated by Council. 7,132 (5,405) 1,727 PROSPERITY NET COST TO COUNCIL (443) P a g e 16 PROGRAM BUDGET /16

21 2.1.2 Initiatives The following are some planned initiatives through the Program Budget that directly relate to Council s objectives for Prosperity: Council Plan Link Prosperity Objective 1: Industry and businesses are attracted and supported to invest, grow and diversify Prosperity Objective 2: Our primary and secondary agricultural sectors are strong and viable Prosperity Objective 3: Campaspe is a desired tourist destination Prosperity Objective 4: Campaspe attracts and retains new residents Initiatives Establishment of the Investment Attraction Manager role to attract private investment to the municipality Completion of strategic rural land use projects Commencement of the Echuca Riverfront Development Active participation in regional opportunities that showcase the Shire of Campaspe to potential residents Performance Indicators The following performance indicator will be reported on within the Performance Statement of the 2015/16 annual report: Function Indicator Performance measure Computation Economic Development Economic activity Change in number of businesses (Percentage change in the number of businesses with an ABN in the municipality) [Number of businesses with an ABN in the municipality at the end of the financial year less the number of businesses at the start of the financial year / Number of businesses with an ABN in the municipality at the start of the financial year] x100 PROGRAM BUDGET /16 P a g e 17

22 2.2 PLACE Functions / Services Council supports the physical environments of its community at many levels. Council is responsible for the building, management and operation of a vast range of infrastructure (roads, bridges, drains, etc) and facilities (libraries, halls, stadiums, etc). To do this Council needs skills and expertise across a variety of functions. Biodiversity protection and responding to climate change are major challenges being tackled at local, regional and national levels. The Council Plan also identifies the promotion of environmentally sustainable practices as real ways of improving the Campaspe environment. Functions Description Revenue (Expenditure) (Net Cost) Strategic Asset Management Property Maintenance Parks and Gardens Statutory Land Use Planning Building Control Road Services Maintains an overview of Council s assets and plans for their future in an integrated and prioritised manner in order to optimise their value and service potential. Maintains Council s facilities in a prioritised and integrated manner. This includes not-for-profit leased and direct managed facilities. This includes ensuring that Council owned buildings comply with Essential Services legislation. Includes the maintenance of garden beds, broad acre mowing, toilet and BBQ maintenance. In addition, the arboriculture team undertakes inspection, pruning, planting and removal of trees and assesses relevant planning permit applications. Processes all planning applications, provides advice and makes decisions about development proposals that require a planning permit, as well as representing Council at the Victorian Civil and Administrative Tribunal where necessary. Provides statutory building services to the community including processing building permits, essential services inspections, audits of building works and investigations of complaints and illegal works. Includes planning and design for setting road service levels as well as, renewing, constructing and maintaining Council s roads, bridges, drains and footpath network. 0 (1,390) (1,390) 219 (1,743) (1,524) 0 (4,141) (4,141) 219 (1,263) (1,044) 237 (862) (625) 501 (19,555) (19,054) Waste and Recycling Manages Council s landfills and transfer stations, as well as the kerbside garbage, recycling and garden organics collections from all households and some commercial properties. 5,419 (4,864) 555 Environmental Services This function supports environmental works throughout the Shire including Landcare and salinity control and provides advice to internal and external parties regarding conservation and environmental support measures. 5 (331) (326) PLACE NET COST TO COUNCIL (27,549) P a g e 18 PROGRAM BUDGET /16

23 2.2.2 Initiatives The following are some planned initiatives through the Program Budget that directly relate to Council s objectives for Place: Council Plan Link Place Objective 1: Transport networks enable easy access to localities Place Objective 2: Land use planning meets current and future needs Place Objective 3: Community infrastructure contributes to our long-term social and economic fabric Place Objective 4: Towns are attractive, with future requirements and unique features clearly understood by Council Place Objective 5: The natural environment is protected and enhanced Initiatives Participation in Loddon Mallee integrated transport strategy Ongoing advocacy of Railing Ahead project Complete the Small Town Structure Planning project Replace the flooring at Echuca Stadium Commence Kyabram fountain / streetscape project Implement Ogilvie Ave landscaping project (stage 1) Partnership with Moira Shire and City of Greater Shepparton to develop landscape guidelines PROGRAM BUDGET /16 P a g e 19

24 2.2.3 Performance Indicators The following performance indicators will be reported on within the Performance Statement of the 2015/16 annual report: Function Indicator Performance measure Computation Statutory planning Decision making Council planning decisions upheld at VCAT (Percentage of planning application decisions subject to review by VCAT and that were not set aside) Roads Satisfaction Satisfaction with sealed local roads (Community satisfaction rating out of 100 with how Council has performed on the condition of sealed local roads) [Number of VCAT decisions that did not set aside Council s decision in relation to a planning application / Number of VCAT decisions in relation to planning applications] x100 Community satisfaction rating out of 100 with how Council has performed on the condition of sealed local roads. Waste collection Waste diversion Kerbside collection waste diverted from landfill (Percentage of garbage, recyclables and green organics collected from kerbside bins that is diverted from landfill) [Weight of recyclables and green organics collected from kerbside bins / Weight of garbage, recyclables and green organics collected from kerbside bins] x100 P a g e 20 PROGRAM BUDGET /16

25 2.3 PEOPLE Functions / Services Many of Council s functions directly support our community. A large part of the workforce spend their time face to face with the community as they look after children, greet customers in person or on the phone and link people to essential information. Functions Description Revenue (Expenditure) Net Cost Aged and Disability Services Services for the aged and people with disabilities including meals on wheels, personal care, home maintenance, transport and senior citizens club support. 4,370 (5,555) (1,185) Family Services Library Services Community Programs Recreation Community Planning Call Centre and Service Centres Family oriented services including preschools, maternal and child health and long day care. Approximately 2,000 children access children's services across long day care, kindergarten and maternal and child health services. Provides public library services across the Shire via the Regional Library (located in Echuca) and branches in Kyabram, Rochester, Rushworth and Tongala. The development of Community Hubs over the past four years has seen the libraries, Council service centres and in some cases community groups co-locate in the one building. The depreciation cost of buildings associated with these combined activities is located in this function. Varied ongoing and time limited programs including youth development activities, health promotion, rural access, housing support, arts and cultural. It provides support to venues, facilitates groups and target populations to achieve defined outcomes and program objectives. Management and use of aquatic facilities, sporting grounds, pavilions, playgrounds or spaces utilised for recreational pursuits. These tasks are achieved directly or through the support of volunteer committees and contractors. Supports communities to identify their future opportunities and challenges and building capacity to plan to address these at a community level. Includes development of community plans by communities across the Shire Service information, payment of Council rates and accounts as well as visitor information is available through the service centres. Council owned and managed facilities, including meeting rooms and recreation facilities, may be booked through this function. Five customer service centres are operated throughout the municipality (Echuca, Rushworth, Tongala, Rochester and Kyabram). 3,622 (4,425) (803) 439 (2,146) (1,706) 260 (650) (390) 1,653 (5,913) (4,260) 0 (373) (373) 0 (201) (201) PROGRAM BUDGET /16 P a g e 21

26 Functions Description Revenue (Expenditure) Net Cost Emergency Management Supports the provision of Municipal Emergency Coordination Centres, undertakes statutory functions of Municipal Emergency Resource Coordinator, Municipal Recovery Manager and Municipal Emergency Management Committee and the preparation of a Municipal Emergency Management Plan. 106 (395) (289) Environmental Health Local Laws Protects the community s health and wellbeing. It conducts food safety inspections, manages the immunisation process, and works to rectify any public health concerns relating to unreasonable noise and odour emissions, housing standards and pest controls. Provides regulation and enforcement of the general Local Law and relevant State legislation aimed at maintaining the safety and amenity of the community (including parking enforcement). It provides the staff at school crossings throughout the municipality to ensure all pedestrians, but mainly school aged children, are able to cross the road safely. It provides animal control services including animal registration, dog and cat collection service and a regional pound. 292 (976) (684) 1,620 (2,022) (402) PEOPLE NET COST TO COUNCIL (10,293) P a g e 22 PROGRAM BUDGET /16

27 2.3.2 Initiatives The following are some planned initiatives through the Program Budget that directly relate to Council s objectives for People: Council Plan Link People Objective 1: Services support our communities health and wellbeing People Objective 2: Communities are vibrant, happy and proud with strong arts, culture and heritage People Objective 3: The identity and diversity of our communities is strengthened and celebrated People Objective 4: Young people reach their full potential Initiatives Complete Hydrotherapy Pool Feasibility Study Implementation of the Campaspe Pre-School Review Completion of building works at Lockington Heritage Centre Support opportunities to recognise Australia s heritage through Campaspe s Community Grants Program, such as WW1 Centenary Events Participate in National Youth Week activities Participate in local career expo and other school initiatives Performance Indicators The following performance indicators will be reported on within the Performance Statement of the 2015/16 annual report: Function Indicator Performance measure Computation Home and Community Care Participation Participation in HACC service (Percentage of the municipal target population that receive a HACC service) [Number of people that received a HACC service / Municipal target population for HACC services] x100 Participation in HACC service by CALD people (Percentage of the municipal target population in relation to CALD people that receive a HACC service) [Number of CALD people who receive a HACC service / Municipal target population in relation to CALD people for HACC services] x100 Maternal and Child Health Participation Participation in the MCH service (Percentage of children enrolled who participate in the MCH service) Participation in MCH key ages and stages visits by Aboriginal children (Percentage of Aboriginal children attending the MCH key ages and stages visits) Libraries Participation Active library members (Percentage of the municipal population that are active library members) [Number of children who attend the MCH service at least once (in a year) / Number of children enrolled in the MCH service] x100 [Number of Aboriginal children who attend the MCH service at least once (in a year) / Number of Aboriginal children enrolled in the MCH service] x100 [Number of active library members / municipal population] x100 PROGRAM BUDGET /16 P a g e 23

28 Function Indicator Performance measure Computation Aquatic Facilities Utilisation Utilisation of aquatic facilities (The number of visits to aquatic facilities per head of municipal population) Number of visits to aquatic facilities / Municipal population Animal Management Health and safety Animal management prosecutions (Number of successful animal management prosecutions) Number of successful animal management prosecutions Food safety Health and safety Critical and major non-compliance notifications (Percentage of critical and major noncompliance notifications that are followed up by Council) [Number of critical non-compliance notifications and major non-compliance notifications about a food premises followed up / Number of critical noncompliance notifications and major non-compliance notifications about food premises] x100 P a g e 24 PROGRAM BUDGET /16

29 2.4 ORGANISATIONAL SUPPORT Functions / Services Council requires a range of support functions in order to deliver its services for the community. These functions must ensure the organisation has the necessary tools, and observes important governance standards, but also continues to lift its performance to enhance effectiveness and efficiency. Functions Description Revenue (Expenditure) Net Cost Councillors, Chief Executive and Executive Team Council and executive leadership and management functions, ensuring clear policy, direction and effective operations across the organisation, this function includes all direct and indirect costs and support functions to Council and executives. 26 (1,662) (1,636) Strategic Planning Communications and Civic Events Financial Services Information Management Organisation Development Grants Management Governance and Compliance Responsible for Council s corporate planning activities as required by legislation, and developing Council s planning activities to ensure that they are consistent and integrated, as well as considerate of community planning activities. Responsible for the management and provision of advice on external communication, in consultation with relevant stakeholders, on behalf of Council. Additionally this function organises Council s Civic Events, provided for the community and guests. Provides financial based services to both internal and external customers including the management of Council s finances, payment of salaries and wages to Council employees, procurement, fleet management, raising and collection of rates and charges and valuations of properties throughout the municipality. Provides, supports and maintains reliable and cost effective information, communications and computing services, facilities and infrastructure to support staff in the delivery of services to the community. Provides Council with strategic and operational organisation development support. It develops and implements strategies, policies and procedures through the provision of human resources and industrial relations services. Administers Council s in-bound and out-bound grants, ensuring all obligations are met. This function also manages the Community Grants Program to support partnership opportunities. Provides a range of governance, statutory and risk management functions. This includes the coordination of Council meetings, provision of legal support services, compliance with legislation (including the Local Government Act), management of insurance, WorkCover premiums and processes claims and insurer s audits. 2 (789) (787) 0 (802) (802) 217 (1,446) (1,229) 0 (800) (800) 50 (551) (501) 0 (363) (363) 12 (1,680) (1,668) ORGANISATIONAL SUPPORT NET COST TO COUNCIL (7,786) PROGRAM BUDGET /16 P a g e 25

30 2.4.2 Initiatives The following are some planned initiatives through the Program Budget that directly relate to Council s objectives for Organisational Support: Council Plan Link Organisation Support Objective 1: With our stakeholders, partners and community, we hold shared goals and understand each other s obligations, activities and achievements Organisation Support Objective 2: Service delivery reflects community needs and is efficient and effective Organisation Support Objective 3: Council continues to have the resources to provide services needed by our communities Organisation Support Objective 4: Council s governance processes visibly meet stakeholder needs and statutory obligations Organisation Support Objective 5: Enhance our ability to achieve outcomes through relationships and reputation Initiatives Ongoing partnership with Murray River Group of Councils Continued delivery of community planning program Complete Stage 2 Service Planning for half of Council s identified services Implement the inspire Program as per the 2015/16 program delivery plan Review Asset Renewal Funding Strategy to support Council s ability to provide assets that are necessary for ongoing service delivery Corporate website redevelopment to support improved governance allowing easier access for stakeholders to Council s meeting agendas and minutes, videos of Council meetings, statutory documents including the Council Plan, Strategic Resource Plan, Budget and Annual Report, and adopted policies and strategies. Establish the Customer Service Liaison role Performance Indicators The following performance indicators will be reported on within the Performance Statement of the 2015/16 annual report: Function Indicator Performance measure Computation Governance Satisfaction Satisfaction with Council decisions (Community satisfaction rating out of 100 with how Council has performed in making decisions in the interests of the community) Community satisfaction rating out of 100 with how Council has performed in making decisions in the interests of the community P a g e 26 PROGRAM BUDGET /16

31 2.5 RECONCILIATION TO UNDERLYING SURPLUS Rate revenue and Grants Commission funding is managed through Organisational Support; however it has been shown separately as it is used to support Council as a whole. This provides a true reflection of the net cost to Council of Organisational Support. Net Cost to Council within this section excludes non-recurrent operational projects either funded directly by Council or via external grants. Service / Function Prosperity People Place Organisational Support Total services / functions Net Cost (Revenue) Expenditure Revenue $ 000 $ 000 $ 000 (443) (8,178) 7,735 (27,549) (34,148) 6,600 (10,293) (22,655) 12,363 (7,786) (8,093) 307 (46,071) (73,075) 27,004 Deficit before funding sources (46,071) General Funding sources Rates and charges 32,495 Grants Commission * 11,205 Capital Grants 6,746 Asset Sales 1,281 Interest 805 Benefits Realisation 500 Total funding sources 53,032 Surplus for the year 6,961 * Grants Commission Funding yet to be confirmed 2.6 PERFORMANCE STATEMENT The performance indicators detailed in the preceding pages will be reported on within the Performance Statement which is prepared at the end of the year as required by section 132 of the Act and included in the 2015/16 Annual Report. The Performance Statement will also include reporting on prescribed indicators of financial performance (outlined in section 8) and sustainable capacity, which are not included in this budget report. The full set of prescribed performance indicators are audited each year by the Victorian Auditor General who issues an audit opinion on the Performance Statement. PROGRAM BUDGET /16 P a g e 27