Barkly Shire Council Business Plan
Second Draft for Community Consultation
May 2008 Foreword
This second draft business plan for the Barkly Shire has been developed with the assistance and input from many people and groups. The first draft of the Business Plan generated much discussion and input from stakeholders and residents in the Barkly. Those issues and concerns that were raised have been instrumental in the development of this second draft.
The Barkly Shire Transition Committee members and officers of the six local government bodies and other organisations/councils in the Shire have continued to give generously of their time to provide ideas and “grassroots” input into the planning work undertaken by the Department of Local Government, Housing and Sport for the commencement of the Barkly Shire.
This second draft of the Business Plan incorporates the input from stakeholders as a result of submissions, public meetings and local discussions to ensure that this draft reflects the current status in terms of organisational, budgetary, governance and development processes. It is open for comment and debate however in its current form will be the Business Plan framework from which the Barkly Shire will commence operating on 1 July 2008. It outlines the new system of governance that will operate in a remote, sparsely populated area of Australia, where several different languages are spoken and where cattle stations are each as big as a local government area in the southern states. The Barkly Shire aims to create and achieve the best standards of delivering services to indigenous communities in terms of environmental health services, roads and infrastructure, sporting and community facilities, and above all opportunities for jobs and training.
During the past four months much time has been spent on preparing funding submissions and undertaking negotiations with Northern Territory and Australian Government agencies in relation to funding for services that those agencies are looking to the Shire for delivery.
We must also ensure we are inclusive of residents who do not live on communities – pastoralists, roadhouse owners and workers, miners, tourism operators, rangers, and their families. Many of these are fiercely independent and wary of governments, local or otherwise.
However the Northern Territory is only as strong as its regions. Regions that do not have strong governance are unable to attract investment – public or private – and are unable to develop regional economies that in turn stimulate better infrastructure. The new system of local government will provide stable governance, robust internal and external accountability, a strong voice for the region and the resources to devote to attracting funding and investment. This can only be good for the region, and for the Northern Territory as a whole.
Local Government also means rates, and many residents will be paying rates and fees for the first time. Much thought has gone into working out a rating model that follows the principles of equity, benefit, ability to pay, efficiency and simplicity. The impact of proposed rates will not affect the viability of businesses (including pastoral and tourism businesses) nor impact on the quality of life of residents and they represent a fair contribution to the development of the region.
The local roads network is one area of service delivery that deserves special mention as it is key to the development of the region. Those parts of the existing local roads network that are currently maintained by the Northern Territory Government will be transferred to the Shire over a five to ten year period, at a timetable and financial scheduling agreed to by the Government and the Shire. This will allow for minimal disruption to services, and the gradual development of capacity within the Shire to manage the roads network.
By late 2008, elections will be held to elect 12 councillors from the three wards of the Barkly Shire. The final version of this Business Plan will be their guide for the first year of the Shire’s operation.
Again, may I thank the work of the Barkly Shire Transition Committee and the many other people who have helped bring this draft plan together. I look forward to feedback from you, the reader, to the development of the final version.
Wayne Hoban Manager Barkly Shire Council Contact Us
The Barkly Shire Council welcomes and values comments, questions and suggestions regarding the Draft Shire Plan. All constructive comments will be acknowledged and considered for incorporation in the plan. Please include your relevant contact details (full name and post or email address) when contacting us. Opportunity for public comment on the second draft will close 30th May 2008.
We look forward to hearing from you.
Shire Manager: Wayne Hoban Postal Address: GPO Box 4246 Darwin NT 0801 Telephone: (08) 8962 4688 Facsimile: (08) 8962 4430 Email: [email protected]
Chief Executive Officer: Jeff Sowiak Phone: 08 89620000 Mobile: 0488534109 Email: [email protected]
Director Corp. and Com. Services: Lynn Moore Mobile: 0458 584 520 Email: [email protected]
Barkly Shire Website: http://www.barkly.nt.gov.au
Contact us online: http://www.localgovernment.nt.gov.au/feedback
Local Government Reform Information: 1300 654 368 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Table of Contents
1. Introduction...... 1
2. Methodology ...... 2
3. Issues and Solutions (Environmental Analysis) ...... 3
4. Regional Profile ...... 4
5. Governance and Representation...... 8
8. Service Delivery Plans...... 13
9. Organisation Structure...... 19
9. Rating Policy...... 24
11. Three Year Financial Plan ...... 28
Appendix 1 Issues Summary
Appendix 2 Regional Profile
Appendix 3 Draft Governance Charter
Appendix 4 Community Engagement
Appendix 5 Strategic Plan
Appendix 6 Service Deliver Plan Summary
Appendix 7 Organisation Charts
Appendix 8 Staff Summary
Appendix 9 Financial Plan
Appendix 10 Maps
Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
1. Introduction
On the 31st of January 2007, the structural reform of local government was announced by the Northern Territory Government. The structural reform will transform the way local government services are delivered to all Territorians living in rural and remote communities. The reform involves the establishment of 8 new Shire councils and the retention of four existing municipal councils (Alice Springs Town Council, Darwin City Council, Katherine Town Council, and Palmerston City Council). The current municipality of Litchfield Shire and Community Government Councils of Comalie, Cox Peninsular and Belyuen are proposed to be retained as existing, with current Community Government Councils becoming small Shires. The new local government structure will come into full effect on the 1st of July 2008.
This is the second draft of the new Barkly Shire’s Plan. It has been prepared by the Barkly Shire’s Chief Executive Officer, Jeff Sowiak and Director of Corporate Services, Lynn Moore with assistance from the Department of Local Government Housing and Sport (DLGHS). Development of the plan has occurred in partnership with the Barkly Shire Transition Committee to propose levels of service delivery, governance framework, organisational structure and a three year financial plan.
The second draft is being released for public comment and will be continually refined until it is adopted by the prospective Shire Council in June 2008.
The new Barkly Shire incorporates existing local government bodies; Tennant Creek Town Council, Elliott District Community Government Council, Aherrenge Association Inc., Ali Curung Council Inc., Alpurrurulam Community Government Council, Urapuntja Council Aboriginal Corp. and a large area of currently unincorporated land that includes the Barkly Tablelands, numerous land trusts and pastoral properties.
Consultation with key stakeholders including the Transition Committee, residents of the new Shire, industry groups, representatives of key Government Agencies, indigenous organisations and existing Councils has been undertaken and will continue in order to develop a Shire plan that will truly reflect the aspirations and operations of the new Shire.
Page 1 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
2. Methodology The following methodology is being utilised to prepare the three year Shire Plan.
4.0 DRAFT SHIRE PLAN
4.1 Strategic Plan 5.0 Stakeholder Input
4.2 Governance 6.0 Framework and Revised Draft Charter Shire Plan
1.0 2.0 3.0 New Local Existing Council Issues and 4.3 Government Financial and Solutions Organisation 7.0 Implementation service delivery (Environmental Structure Plan details Analysis) Adoption by Shire Council
4.4 Service Delivery Plan 8.0 Business Plan Implementation
4.5 Financial Plan Including Rating
Page 2 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
3. Issues and Solutions (Environmental Analysis)
The Barkly Shire Plan drafts have been developed utilising information obtained through consultation with key stakeholders that included the Barkly Shire Transition Committee, Council staff, funding agencies and community members. Participants in workshops and meetings were asked to identify their perceptions of the strengths, weaknesses, opportunities and threats facing the new Shire Council. This second draft includes additional issues and feedback provided from public comment on the first draft released in December 2008.
In addition, all available documents and literature relevant to the establishment of the Shire were reviewed as part of the preparation of this Shire plan.
The process of identifying issues facing the new Shire and developing solutions to these issues is called an “environmental analysis”. Solutions to issues are included within the plan as strategies or actions of the Shire Council.
Details of the environmental analysis undertaken in the development of this plan are contained in Appendix 1: Issues Summary.
Page 3 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
4. Regional Profile
Area and Population
Area: Approximately 322,514 km² Population: Total estimated resident population* of the Shire is 7,531.
The Barkly Shire covers an area of approximately 323,514km², stretching from the Queensland border to west of the Stuart Highway, and from north of Elliott to south of Barrow Creek. Approximately 7,531 people live within the region. The town of Tennant Creek, including the Urban Living Areas of Kargaru, Tinkarli, Wuppa, Marla Marla, Village Camp and Munji-Marla, Ngalpa Ngalpa, has the largest concentration of residents, followed by the open town of Elliott and its surrounding district and the major communities and outstations of Ampilatwatja, Urapuntja, Alpurrurulam, Ali Curung, Canteen Creek and Wutunugurra (Epenarra). In addition to these major populations, the Shire also consists of approximately eight minor communities the largest of which include Tara and Mungkarta, seventy family outstations, forty nine pastoral stations, mining operations and commercial properties. The estimated resident population of the major localities within the Shire are shown in Table 1 below. Table 1: Estimated Resident Population by locality (ABS Census 2006)
Locality Population
Tennant Creek 3,332
Elliott 493
Ampilatwatja 428
Ali Curung 379
Alpurrurulam 410
Urapuntja Outstations 747
Canteen Creek 218
Wutunugurra 244
Other Communities within Shire 1,280
Total 7,531
* The Australian Bureau of Statistics uses a number of methods to represent population, including Usual Resident Population and Estimated Resident Population. The Northern Territory Government and the Northern Territory Grants Commission use Estimated Resident Population figures when representing population. Where Estimated Resident Population figures at the locality or Shire level are not available through the 2006 Census Data, the Northern Territory Government has developed a formula to calculate these figures. This formula is undergoing constant refinement and as such the figures in Table 1 are subject to change. Page 4 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Towns, communities and localities The towns, major and minor communities, family outstations, pastoral stations, hotels and roadhouses and other localities that form the Barkly Shire are documented in Appendix 2: Regional Profile. This appendix includes details of Barkly Shire regional service delivery areas.
Languages In addition to English, the Barkly Shire has a range of different Indigenous languages that are used throughout the region. Some of these larger language groups include the following:
Warrumungu Warlmanpa Warlpiri Jingili Garawa Mudburra Kaytetya Alyawarre Anmatyerre Wambaya
For full-scale versions of map refer to Appendix 10: Maps
Page 5 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Shire Boundaries: The boundaries of the Barkly Shire are shown in the following map. These boundaries will be gazetted by the Minister for Local Government and come into affect as of the Shire’s commencement, 1st July 2008.
For full-scale versions of map refer to Appendix 10: Maps
Page 6 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Page 7 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
5. Governance and Representation
Principles for Developing the Governance Structure: The following principles have been considered in developing the proposed governance structure for the Barkly Shire: Maintain local community input and influence in local government decision making Ensure flexibility in dealing with local issues and local community differences Incorporate transitional requirements in mapping out governance implementation Ensure each local community’s interests are represented through appropriate structures and processes Ensure representation occurs as closely as possible to one vote one value Support the retention of cultural identity at the local community level
Statutory Requirements The new Shire has statutory obligations under a variety of Northern Territory and Australian Government legislation. The most important legislation governing the Shire is the Local Government Act (NT). This Act and its regulations are currently being amended by the Northern Territory Government. The Local Government Bill 2007 can be viewed at www.dlghs.nt.gov.au
In particular, the Local Government Act sets out rules for election systems, obligations of Councillors and many other matters relating to the governance and administration of the Shire.
Basis for Good Governance The following provides the generally accepted basis for good governance and has informed the development of a Governance Charter for the new Shire: Build upon the foundations of governance best practice Build upon existing community strengths and capacities Ensure plans and services are driven by a clear vision Promote ethical and responsible decision making Ensure openness and integrity in financial reporting Recognise and manage risk Encourage improved performance Recognise the legitimate interest of stakeholders
Shire Council Charter As part of development of the Shire Plan a draft Governance Charter has been developed. This can be further developed and will ultimately be adopted by the new Council.
Refer to Appendix 3: Draft Governance Charter
Page 8 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Shire Elected Representation The Shire Transition Committee has made representation to the Northern Territory Government and the Northern Territory Local Government Advisory Board in terms of its proposed system of elected representation.
The following representation model is proposed:
Ward No Elected Members
Barkly Shire Popularly Elected President 1
Alyawarr 4
Patta 5
Yapakurlangu 2
Total 12
Election of Mayor or President The new Act will provide that the chairperson of the Council can hold the title of either President or Mayor. The Barkly Shire Transition Committee has proposed that the chairperson of the Barkly Shire Council will hold the title of President.
In addition, the new Act will provide that the Shire’s constituents can choose between having a popularly elected President or a President who is nominated from within the Council. The Barkly Shire Transition Committee has proposed that the Barkly Shire will have a popularly elected President.
In the circumstances where the transition committee has demonstrated a clear preference for a popularly elected President, the Shire Manager, prior to the first Council elections may pass a resolution enabling the separate election of a President at the first Council elections. In order to pass this resolution there is a legal requirement for the Shire Manager to be satisfied that there is substantial support for the separate election of the President among the Council’s electors.
After determining the level of community support for a popularly elected President for the Barkly Shire, the Shire Manager will pass a final resolution on the proposal. This is resolution must be passed not less than three months prior to the Shire elections.
Page 9 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
6. Community Engagement
Community level engagement by the Barkly Shire Council will occur using the following three medians: Local Boards Shire Council Meetings and Committees Communication and Media
Local Boards A Local Board is a voluntary group of members of the community who provide advice to the Shire Council and a voice on local issues and priorities. A network of Local Boards will be established by the Shire to enable Council to have a systematic approach to gaining input on issues that affect a particular community or local region.
An outline of the function, status, membership, establishment, communication and procedures of Local Boards is contained within the Local Government Act. Within the terms of this legislation, there is also opportunity for the Council and community to provide considerable direction towards the development and form of Local Boards. For suggestions from the Shire Council and questions for community to consider, in addition to details of the Act see Appendix 4: Community Engagement.
A Local Board will have the following roles: Provide advice to the Council on service delivery plans for communities or local regions, and have input into Shire Plans. Provide advice on specific Council community and social projects that impact on that community or region Alert Council to new and emerging issues within the scope of Council activity Provide a voice for the community and ensure the cultural, economic, social and environmental needs of the local community or region are considered by the Council Other delegated roles such as organising community events.
Members of Local Boards will be nominated by the Shire Manager in the first instance, and then by Council in consultation with community leaders. Existing Community Councils and other community groups will be encouraged to submit a Local Board proposal to the Shire Manager. Assistance will be provided from the Department of Local Government Housing and Sport in the development of Local Board proposals into the first year of Shire operations.
Ongoing support of Local Boards will be provided by Council staff who will act as secretariat to the Board and provide other support as required. Staff will also be responsible for providing an induction program to Board members, and ongoing training as needed.
Page 10 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Shire Council Meetings and Committees
The following meetings and committees have been identified as additional opportunities for the Shire Council to engage with community:
Council Committees Stakeholder Forums Council Meetings Open to the Public Deputations to Council Meetings of Electors
With the greater capacity of the Shire Council and the need to ensure local level input, these forms of engagement will be an additional resource to be utilised by Council and community.
Council Committees are established by Council or CEO to carry out a function determined by Council and usually focus on a specific task or project. They can be either advisory or executive in their function.
The Council or CEO may from time to time establish formal or informal forums with particular stakeholders to allow for discussion and input from these stakeholders. These forums will be established as needs are identified for particular interest groups to consult directly with Council.
Council meetings open to the public Except under exceptional circumstances, Council meetings will be open to the public. This ensures transparency in decision making processes and accountability to residents.
Formal deputations to Council In addition, the Council will accept formal deputations from Local Boards and other interest groups at Council meetings, to put a particular point of view or argue a case for a particular action to be supported by Council.
Meetings of Electors (Public Meetings) Councils and Local Boards may also call meetings of the electors in their area. These may be used to provide information and discuss particular issues.
Communication and Media
The Shire will use a number of different media based communication tools to meet its obligations to facilitate communication between the Council and Shire residents and to ensure residents are kept properly informed about Council’s policies, programs and decisions.
These will include:
Page 11 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Shire Council newsletter, regularly produced and distributed by Council Local and Territory newspapers Community radio stations Service Centre noticeboards, maintained and regularly updated by Council Barkly Shire web-site
The Barkly Shire website is at: www.barkly.nt.gov.au
For further details on all community engagement forms described above refer to Appendix 4: Community Engagement.
7. Strategic Plan
The Shire Strategic Plan has been developed based on feedback obtained through a series of workshops with key stakeholders including the Shire Transition committee and staff from existing Councils.
Issues and related solutions identified in the environmental analysis of this Shire Plan have formed the basis for the development of strategies to achieve the Shire’s identified goals and outcomes.
The Shire’s Strategic Plan contains the following: Vision Mission Core Values Goals Outcomes Strategies
The Strategic Plan forms the basis for the development of service delivery plans and associated actions required to implement the Council’s strategies and achieve the Shire’s outcomes.
Refer to Appendix 5: Strategic Plan
Refer to Appendix 6: Service Delivery Plan Summary (incorporating operational actions)
Page 12 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
8. Service Delivery Plans
The responsibility for delivery of services to locations previously serviced by local government Councils will transfer to the Shire as of July 2008. These services will include core local government services and those agency and commercial services which the Shire is funded to provide.
The six local government bodies for which responsibility for service delivery will transfer to the Barkly Shire Council include the following:
Ali Curung Council Association Incorporated, Aherrenge Association Incorporated, Urapuntja Council Aboriginal Corporation Alpurrurulam Community Government Council Tennant Creek Town Council Elliott District Community Government Council
Regional Service Providers
Core, commercial and agency services have, and will continue to be provided by a number of organisations in the Barkly Region. From 1st July 2008, the Barkly Shire Council will operate as one of the principle services providers for the region. As part of its operation the Shire will seek to ensure cooperation between itself and other providers and development of partnerships where opportunities exist for mutual benefit and improved service delivery.
The following two resource centres and one association will continue, post 1st July 2008, to be responsible for provision of the core local government services and other services to those major and minor communities and outstations for which they receive funding.
Julalikari Council Aboriginal Corporation Canteen Creek Owairtilla Association Thangkenharenge Resource Centre
Details of Barkly Shire Council towns, communities and outstations and their identified service providers are provided in Table 1 of the Regional Profile Appendix 2.
Page 13 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Shire Service Centres and Headquarters
Local Government service delivery in the Barkly Shire will be provided from five Service Delivery Centres and a combined Headquarters/ Service Delivery Centre based in Tennant Creek. These centres utilise existing Council facilities and are located in the Shire’s towns and major communities. The Shire Service Centres of the Barkly Shire Council are: Headquarters: Tennant Creek Head Quarters/ Service Delivery Centre
Service Delivery Centres: Elliott Service Delivery Centre Arlparra (Urapuntja Outstations) Service Delivery Centre Ali Curung Service Delivery Centre Ampilatwatja Service Delivery Centre Alpurrurulam Service Delivery Centre
Shared Service Centre
The Barkly Shire Council has negotiated with the MacDonnell and Central Desert Shires to establish shared services arrangements between the three shires with the intent of sharing the costs of processing payroll and accounting systems. The Shared Service Centre will be located in Alice Springs and will use common business system procured as part of the Shire set-up. The Centre will provide the following services to the three Councils:
Payroll Processing Creditors Processing Debtors Processing Contracts and Purchasing Services Bank Reconciliation
Details of the Shared Service Centre are available in Section C of the Southern Region Local Government Regional Management Plan.
Shire Services
The development of service delivery plans has been based on the identification of individual services and the classification of those services as follows:
Core Services Commercial Services Agency Services Other Council Services
Page 14 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Core Services Core Services are services that all Shire Councils are required to deliver to specified communities from 1 July 2008 under the amended Local Government Act.
The following core services will be provided to communities in the Shire: Administration of Local Boards, Advisory Boards and Management Committees Administration of Local Laws Advocacy and Representation on Local and Regional Issues Asset Management Cemetery Management Civic Cultural and Sporting Events Companion Animal Welfare and Control Community Management Council Planning and Reporting Customer Relationship Management Financial Management Fleet and Plant Management Governance Human Resource Management Information Technology and Communications Library and Cultural Heritage Lighting for Public Safety including Street Lighting Local Emergency Management Local Road Maintenance Local Road Upgrade and Construction Maintenance and Upgrade of Council Controlled Buildings, Facilities and Fixed Assets Maintenance and Upgrade of Council Controlled Parks, Reserves and Open Spaces Public and Corporate Relations Records Management Revenue Growth Risk Management Traffic Management on Local Roads Training and Employment in Council Operations Waste Management (including litter control) Weed Control and Fire Hazard Reduction
Commercial Services Commercial Services are services that the Shire is undertaking on a full commercial basis with the intention of using profits from commercial activities to improve services to the community. The following Commercial Services will be undertaken by the Barkly Shire: Housing Management Housing and Infrastructure Maintenance Non Council Roads Post Office Agency Power, Water and Sewerage Visitor Accommodation and Tourist Information
Page 15 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Agency Services Agency Services include services that the Shire Council has agreed to deliver on behalf of other Government Agencies on a fee for service basis. It is anticipated that these services would be fully funded by the relevant agency and that funding would include a contribution to administrative costs associated with delivering the service. The following Agency Services will be delivered by the Shire: Airstrips Night Patrol Economic Development Support Employment and Training Family (Including Child Care) Outstation Municipal Sport and Recreation Youth Aged and Disabled Care Centrelink
The following agency services may be delivered by the Shire subject to ongoing negotiations with relevant agencies and funding provision: Safe Houses Arts and Culture Community Media Family Finance Skills Natural and Cultural Resource Management Environmental Health
Other Council Services These are services that each Shire chooses to deliver from its own-source revenue. These are services that are not funded on an Agency or Commercial basis. The following additional services will be delivered by the Shire: Swimming Pools
Government initiated projects
A number of community projects have been developed through initiatives of Commonwealth and Territory Government Agencies including internet cafes, art galleries, horticultural projects and similar business enterprises.
The proponents have generally initiated the projects on the understanding that the projects would become self sustaining over time and funding was limited to initial capital cost and start- up.
Page 16 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
The Barkly Shire Council is of the view that the impetus for these projects is external to the Council and accordingly the projects should be managed on a self sustaining basis. Where this is not practicable the Council does not have the capacity to maintain these services without financial assistance from the agencies responsible for their creation.
Therefore, whilst the Council will facilitate the development of business enterprises and promote economic development it does not have the capacity to fund unsustainable business entities.
Services that will not transfer to the Shire
Existing Councils are currently reviewing those agency and commercial services they deliver and projects they are managing, to determine if there are any services that will not transfer to the Shire.
The Ali Curung community has developed an independent Aboriginal Incorporation, Arlpwe Artists Aboriginal Corporation to take on the management of the Arts Centre, a project of the communities SRA. The future management of a number of other projects under the SRA have yet to be determined. These include a market garden and internet café.
Urapuntja Council have made the decision to retain their incorporated body, the Urapuntja Council Aboriginal Corporation for the purposes of maintaining their own capacity for business and service delivery. At this time no firm decision has been made regarding which services will not transfer to the Shire.
Tennant Creek Town Council, the Council established a proprietary limited liability company which will be used to develop community level projects independently of the Council and subsequently independent of the Shire. A community trustee organisation, with community representatives as Directors, will manage the assets for the community.
Alpurrurulam and Aherrenge Councils, are both members of the Alyawarr Ingkerr-Wenh Aboriginal Corporation and will use this vehicle to explore options for community and regional business development and contract service delivery. At this time, however, most current Council services will transfer to the Shire.
Elliott Council has developed an independent Aboriginal Incorporation, Kulumindini Aboriginal Corporation and is in the process of considering a number of independent options, particularly with respect to the Arts Centre.
Where any of the processes are incomplete by 1 July 2008, these activities can continue under the new local government structure until such time as the incorporation process is complete provided that the services are maintained on a full cost recovery basis. .
Page 17 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Development of Service Delivery Plans Detailed Service Delivery Plans have been developed for all services being provided by the Shire. These plans contain the following details: A description of the service Service outputs The primary outcome that the service delivers An analysis of the current approach to service delivery An analysis of future approach to service delivery Details of the specific actions to be undertaken relevant to the delivery of the service, including each community that will receive the service Financial details relating to the delivery of the service Measures that will be used to assess service delivery performance (KPI’s)
Service Delivery Plans will be continually refined. The ways in which services are being delivered is constantly changing, particularly since the implementation of the Australian Government intervention. The Service Delivery Plans attached may not contain all the current information regarding service delivery and the Service Delivery Plan will be continually revised.
Refer to Appendix 6: Service Delivery Plan Summary (incorporating operational actions)
Page 18 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
9. Organisation Structure
Governance Objectives supported by the Organisation Structure The organisation structure has been designed to support the following governance objectives: Improved control over outcomes within the community Strong and developing leadership Improved ability to influence government policy Increased staff accountability through the utilisation of performance based contracts and performance management and monitoring tools Long term financial sustainability through prudent financial management supported by regular and accurate financial reporting Formal induction for the CEO / Managers in local issues and induction and training for elected members in governance practices e.g. legal / accounting Improved selection processes for CEO and Managers Clear directions and policies and regular monitoring, review and advice on performance of the portfolio of programs and projects Clear and comprehensive roles and responsibilities of the Council and their committees, supported by appropriate policies and delineated from the role of the CEO and management Fully integrated Council plans, projects and budgets to ensure strategic priorities clearly drive project and resource allocation decisions Alliances and partnerships will be actively managed to ensure stakeholders’ needs are identified, projects are targeted and commitment is secured Prioritisation of projects within and between program areas will be supported by decision making tools and processes to ensure the right mix of initiatives to achieve the goals and outcomes of the Council’s Strategic Plan
Administrative Objectives supported by the Organisation Structure The organisation structure has been designed to support the following administrative objectives: Ability to attract and retain talented people, underpinned by policies and processes that encourage good performance, identify and provide training and development opportunities and enable flexibility in the contract appointment of senior level positions Ability to work effectively to deliver community outcomes identified in the Strategic Plan to the community utilising a coordinated, cross-departmental approach Ensure that community infrastructure provision and service delivery is clearly linked to priority community outcomes Present a common and coordinated approach to government agencies on funding requirements and community projects Utilise a “Regional” approach to targeted programs e.g. community development, economic development, sport and recreation, aged care, waste management and housing maintenance
Page 19 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Apply a consistent and beneficial approach to employment across the region to maximise outcomes for the community and the individual Ability to provide full financial reporting and program/project performance reporting against planned objectives and budget provided to the Shire Council on a regular basis Maximise the utilisation of current assets including buildings, workshops, plant and equipment Ability to provide an improved level of service delivery in key areas including roads, waste management, parks and reserves etc. Information systems and software will be of a high industry standard and scaleable, enabling data and information essential to operations to be collected internally and externally, analysed and delivered at the appropriate level Professional skills in the following disciplines: o Management and Administration o Strategic and Business Planning o Accounting/Financial o Engineering/Technical o Information Technology o Community Development Have a continued and stable presence in key community locations In-house delivery of key services where appropriate to retain, increase and utilise skills linked to labour market programs Centralised information technology and administrative systems and processes A focus on achieving partnerships and external funding to achieve community outcomes
It is important to take the organisational analysis and put it into the broader context of public sector reform, in particular: Emphasis on performance management and accountability Competitiveness Activity review and process improvement Autonomy of operation with a limited number of supervisory controls
Meaningful and responsible work should be performed at all levels in the organisation structure, with employees being responsible for: Customer satisfaction Quality of work output Financial performance Finished staff work Decision making Organisation of priorities Problem solving Innovation and change
Page 20 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
In today’s environment an organisational structure should: Support decentralisation of decision making Empower autonomy of operation Encourage cross functional cooperation Be adaptable to a rapidly changing environment Encourage multi-skilling and a variety of job design without organisational chaos Encourage initiative Be non–hierarchical Have as low ratio of administration (management) as possible Have a customer focus
Operational Locations In 2008/2009 the Shire will provides services from the following operational locations:
Headquarters: Tennant Creek Head Quarters/ Service Delivery Centre
Service Delivery Centres: Elliott Service Delivery Centre Arlparra (Urapuntja Outstations) Service Delivery Centre Ali Curung Service Delivery Centre Ampilatwatja Service Delivery Centre Alpurrurulam Service Delivery Centre
Shared Service Centre: Alice Springs
The operational model includes service delivery centres at appropriate locations and a centralised administration office. The make up of each service delivery centre varies according to identified needs and the existing structures in place, however all include at a minimum a Community Manager, a Customer Service Officer and Operations Staff. Communities with higher asset maintenance needs will clearly have a higher need for additional local staff.
The Head Quarters provides centralised administration and will be networked to Service Delivery Centres. It will support Shire governance, manage the strategic planning for the Shire and coordinate Shire operations associated with core, agency and commercial services.
Shared service arrangements with the Southern Shared Service Centre will be managed from the Barkly Shire Headquarters by the CEO and Director of Corporate and Community Services.
Page 21 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Directorate Structure Figure 2: Directorate Structure
The directorate structure outlined provides a framework for the strategic delivery of more efficient and effective services. Professional expertise will be available at the regional level however there will remain a strong need for the local delivery of services in communities.
Core Administration of Local Boards, Advisory Executive Services Bodies and Management Committees Chief Executive Officer Advocacy and Representation on local and regional issues Governance
Director Works & Director Corporate and Services Community Services
Core Core Asset Management Civic Cultural and Sporting Events Cemetery Management Council Planning and Reporting Companion Animal Welfare and Control Customer Relationship Management Fleet and Plant Management Financial Management Lighting for Public Safety including Street Human Resource Management Lighting Information Technology and Communications Local Emergency Management Library and Cultural Heritage Local Road Maintenance Local Laws Administration Local Road Upgrade and Construction Public and Corporate Relations Maintenance and Upgrade of Council Records Management Controlled Buildings, Facilities and Fixed Revenue Growth Assets Risk Management Maintenance and Upgrade of Council Training and Employment in Council Operations Controlled Parks, Reserves and Open Spaces Agency Traffic Management on Local Roads Aged and Disabled Care Waste Management (including litter Arts and Culture reduction) Centrelink Weed Control and Fire Hazard Reduction Community Media Economic Development Support Commercial Employment and Training Housing and Infrastructure Maintenance Environmental Health Motor Vehicle Registry Family (Including Child Care) Non Council Roads Family Finance Skills Post Office Agency Housing Rental Management Power, Water and Sewerage Night Patrol & Safe Houses Territory Industry Housing Management Sport and Recreation Youth Other Council Services Other Council Services Swimming Pools Maintenance Swimming Pools Staffing
Agency Commercial Airstrips Visitor Accommodation and Tourism Information Outstation/ Homeland Municipal Natural and Cultural Resource Management
Page 22 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Staffing Levels and Detailed Organisational Structure The Shire’s organisational structure will facilitate increased service provision across the region and increased opportunities for local and indigenous employment.
Overall, the structure provides for the following:
Full Time Estimated Service Delivery Area Equivalent Actual Staff (FTE’s) (Headcount)
Core Services (Communities) 53 61
Core Services (Headquarters) 36.5 37
Sub Total Core Services
Agency Services 41.5 49
Commercial Services 18.5 20
Other Council Services 2 6
Total 151.5 173
The number of staff engaged by the Council (headcount) is higher than the number of equivalent full time ( EFT) staff due to job sharing and part time staff engaged in the delivery of some services.
A summary of the role of key staffing positions and detailed Organisations Charts (including staffing levels) for the Service Delivery Centres and Headquarters are outlined in:
Appendix 7: Detailed Organisation Structure
Appendix 8: Staff Summary
Page 23 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
9. Rating Policy
The Territory Government has determined that in 2008/09 financial year the rating policy of the Shire Council shall be as follows:
Pastoral Leases and Commercial Agricultural Properties In 2008/2009 the rate for pastoral leases and commercial agricultural properties will be calculated by multiplying the unimproved capital value (UCV) by 0.00060. The minimum amount payable will be $300. Accordingly, all properties with a UCV of less that $500,000 will pay $300 per annum.
In future years, under proposed amendments to the Local Government Act, all proposals for rating of pastoral leases will have to be presented by the Shire to the Minister for Local Government for approval prior to any change in the rating. This requirement will be enshrined in the new Local Government Act. The Minister will issue guidelines to councils indicating the issues that will have to be taken into account in presenting a proposal to the Minister. The Minister will be required to consult with Cabinet on Shire rating proposals.
The average rate on pastoral leases in the Shire will be $1722 per lease and the total revenue from this sector in the Shire will be $90,734 in 2008/09.
Active Mining, Extractive and Petroleum Leases Only active mining, extractive or petroleum leases will be rateable.
The assessed value of an active mining, extractive or petroleum lease shall be 20 times the yearly rent payable in respect of the lease, where the rent is $10 per hectare. This is in line with the approach taken in Western Australia and Queensland, where the rateable value of a mineral lease is calculated on the basis of its rental value.
The guideline rate for mining land is to be the same as the guideline rate for ‘commercial non- agricultural’, calculated by multiplying the assessed value by 0.00284. The minimum rate shall be $710. Under this model the great majority of extractive and mining leases in the Territory will pay the minimum amount of $710.
The Shire plan rates only mineral, extractive and petroleum tenements with current authorisations for commercial production. The Minister for Local Government will be releasing more detailed guidelines on the rating of mineral leases in the near future. The Shire's rating policies and estimates will be adjusted, if necessary, to comply with the Minister's guidelines.
In future years, under proposed amendments to the Local Government Act, all proposals for rating of active mining, extractive and petroleum leases will have to be presented to the Minister for Local Government for approval prior to any change in the rating. This requirement will be enshrined in the new Local Government Act. The Minister will be required to consult with Cabinet on Shire rating proposals.
The total rates from mining tenements in the Shire are estimated to be $90,205 in 2008/09. Page 24 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Existing incorporated areas The Territory Government has determined that rates in existing incorporated areas will be based on 2007/08 rating systems, with an increase of no more than CPI in overall rates in the 08/09, 09/10 and 10/11 financial years.
Tennant Creek and Elliott are currently subject to rating systems. Applying the principle outlined above, the rates from Tennant Creek are estimated to be $1,903,130 and the charges from Elliott are estimated to be $62,026. The service charge for Elliott currently includes both a rating component as well as a service charge component. It is proposed that these charges be reviewed to separate that component of the charge relating to garbage charges from the general rate component to make the charge comparable with other similar local government rates and charges.
Commercial properties in currently unincorporated areas (excluding mining and pastoral) The minimum rate or service charge for commercial properties (not otherwise classified above) will be $710 per operational location or, where the commercial property is on rateable title with a UCV in excess of $250,000, an amount calculated by multiplying the unimproved capital value by 0.00284.
No previously unincorporated commercial properties have been identified in the Shire that fall into this latter category. Thus roadhouses and other commercial properties in currently unincorporated areas generally will be rated at the minimum amount.
It is estimated that the total rates from this sector in the Shire will $39,050 in 2008/09.
Further, where a business uses a waste management facility operated by the Shire and/or receives waste collection from the Shire waste charges will apply.
Page 25 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Public Housing in Remote Communities A significant majority of indigenous housing in the Northern Territory falls within the jurisdiction of existing community government councils. Most existing councils on indigenous land levy a poll tax against residents of indigenous housing in lieu of the revenue that would otherwise be derived from rating property.
The concurrent reforms to the management of indigenous housing in the Territory provide an opportunity for Shire councils to move to a fairer, simpler and more efficient method of collecting local government revenue in indigenous townships.
From 1 July 2008, Territory Housing will assume direct responsibility for tenancy management of housing stock in most indigenous communities. The Australian Government and Territory Government have agreed that these tenancy arrangements will include the payment of a ‘rate equivalent’ per dwelling, replicating the current payment of rates to municipal councils in respect of public housing in major centres such as Darwin or Alice Springs. The responsibility for payment of the rate equivalent will rest with the management authority.
For example, where a Shire council provides local government services to 500 dwellings managed by Territory Housing, the Shire council will charge Territory Housing the annual rate equivalent amount multiplied by 500. Like any ‘landlord’, Territory Housing will cover its ‘rate’ payments through rent collected from residents and other sources of tenancy management income. Due to current non-applicability of unimproved capital values on inalienable indigenous land, the ‘rate equivalent’ will be a flat service charge.
The Territory Government has yet to make a final determination on the rate equivalent for remote public housing in the Shire. For the purpose of this draft plan, the charge has been estimated as $600 per dwelling for houses currently managed by local government bodies. In addition, where the existing council provides a garbage collection service, there may be an additional guideline charge of $150 per dwelling. The financial impact on residents of this charge will be limited by the rent ceiling placed on public and indigenous housing. It is estimated that the total rates and garbage collection charges from this sector in the Shire will be in $298,500 in 2008/09.
Transfer of responsibility for local roads and other assets Given the relatively low levels of rates and charges that will result from the determinations made by the Territory Government, it is important to note that no roads or other linear infrastructure will be transferred to the new Shires on 1 July 2008. Instead a strategic asset transfer process and program will be established by the Department of Planning and Infrastructure (DPI) with all Shires post 1 July 2008. This program will ensure that local roads, barge landings, boat ramps and airstrips that are currently the responsibility of the Northern Territory Government will be transferred to Shires in a coordinated way over a five to ten year period and with agreed appropriate funding.
Page 26 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Rating Exemptions Certain land is exempt from rating under the Local Government Act, including: Crown Land - occupied by the Territory or land owned by the Commonwealth other than for industrial or commercial uses Community Land – reserves, parks, sports grounds, gardens, cemeteries or roads which are a public place Land Owned by Religious Bodies – churches, manses, teaching buildings etc Public Hospitals Land used for a Public Benevolent Institution or Public Charity Educational Institutions – schools, universities, tertiary education, youth centres Libraries or Museums Land exempted under other Acts
Page 27 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
11. Three Year Financial Plan
Councils are responsible for the delivery of a broad and unique range of services to their communities, with different communities within the Shire having their own different priorities.
The new Shire is responsible for: Delivering Core Services Providing Corporate Governance Providing Advice and Advocacy Ensuring Legislative Compliance
and managing the following resources: Financial Resources Human Resources Physical Resources Information Resources External Resources (Suppliers and Contractors) Partnerships and Relationships
The Shire will deliver a range of Agency, Commercial and Other Council Services that contribute toward improving the level of services provided to their communities.
The Shire is faced with the challenge of delivering a broad range of services to a standard acceptable to the community whilst at the same time raising revenues required to deliver core services within the context of its community’s ability to support those services.
Long term financial planning (3-5 years or longer) assists the Shire in delivering services in a sustainable way and will be undertaken to ensure that: Managers and elected members understand the current financial position of the Shire and how various financial elements impact on each other Guidelines are set to underpin the long term financial capacity Short term decisions and annual Budgets are made within the framework of longer term financial capacity Available funds are maximised for the benefit of the community
The key component of any financial strategy in a service delivery organisation is to balance community demands and expectations with the Shire’s financial capacity.
Page 28 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
A long term financial plan will link the strategic direction and policy of Council into the delivery of a range of services. The extent and standards of service delivery will depend largely on Council’s preferred position on debt, cash reserves, liquidity and rating. The financial information contained in any long term plan simply reflects this. There is no right or wrong position but rather a “preferred” position based on strategic needs and level of financial conservatism.
Future Strategic Management Planning Development The following model has been prepared for consideration. It is designed to provide a solid planning base by providing effective linkages from Strategic Planning, through the Business or “Corporate” Planning element and into the allocation of resources in the budget process. It demonstrates the interaction with planning documents, including long term financial plans, with the strategic direction of Council.
Once the organisation’s goals, objectives and strategies have been developed, individual actions or processes are defined to support achievement of outcomes. This is usually carried out at a Business Unit level on an annual basis (Business Planning). These actions are also linked to relevant areas of service delivery.
The information obtained from the strategic planning and business planning processes can then be utilised in the preparation of annual plans and budgets.
Overview - Three Year Financial Plan In order to assist in the discussions on development of the new Shire, a draft three-year financial plan has been prepared as the basis on which discussion and decisions on service delivery and revenue requirements and therefore the long-term financial viability of the organisation can be made.
A major task of the new Council is to ensure, over time, consistency of standard of service delivery across all existing and new areas of the Shire.
The 3 Year Financial Plan has been based on the Core, Agency, Commercial and Other Council Services detailed in Appendix 6 – Service Delivery Plan Summary.
The major financial assumptions that have been made in the development of the draft three- year financial plan for the Shire are summarised below:
Page 29 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
FINANCIAL ITEM ASSUMPTIONS
Operating Expenditure
Ongoing operations Ongoing base operational expenditure has been developed for each service from first principles and compared with existing 07/08 budget details where possible Operational income and expenditure has been expressed in 2008/2009 values to facilitate development of detailed budgets for the first year of operation of the new Shire An attempt has been made to allocate significant labour costs across most program areas. This allocation will be refined as the year progresses and more detailed timesheet data is available to accurately determine labour allocation. Given the limited information available on many of the minor services, a nominal provision of $5,000 has been made for that service in each community. This will be reviewed in subsequent revisions of this plan. A provision of $10,000 per annum per community has been made for the maintenance of Council facilities FaHCSIA will provide $10,000 per annum for vet clinics in each community
Road Maintenance The existing communities general purpose road grant funding has been used as the basis for establishing the initial road maintenance budget. This will be reviewed once actual road maintenance needs have been determined A provision of $1,079,000 pa has been allocated for the road maintenance program No provision has been made for the transfer of DPI roads over the three year planning period Local community civil works teams will continue to undertake relevant DPI road maintenance activities under contract
Waste Management No provision has been made for Waste related capital works on the assumption that essential works are being undertaken during the current year as part of the Federal Government’s intervention strategy No allowance has been made for provision of additional household bins There has been no specific allocation of plant costs to the waste service but significant plant operating expenditure has been budgeted under the Plant and Equipment Service
New operating initiatives No new operating initiatives have been included in this first draft The first year costs associated with the establishment of ICT infrastructure and the introduction of new business systems have not been included as they will be funded by the DLGHS.
Depreciation Depreciation has not been included as the value of assets will need to be determined on transfer along with the level of assets impairment.
Interest on borrowings No loan borrowings have been provided for
Page 30 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Operating Income
Rates This plan is been prepared in 2008/09 values but it should be recognised that rates will need to be increased in nominal dollars by CPI over the next three years to match costs that will increase by CPI
Fees and Charges, Current levels sourced from the 2007/08 budgets where available Interest Earnings and Assumed to increase by CPI consistent with the comment included above for Other Income Rates
General Purpose and Grant estimates for 2008/09 were provided by DLGHS Road Grants
Goods and Services Tax GST offsets have not been included in the budget estimates. (GST)
FINANCIAL ITEM ASSUMPTIONS
Balance Sheet Items
Road Upgrade and No provision has been made for Black Spot, but a $100,000 provision has been Construction made for Roads to Recovery funding from 2009/10. Additional funding will be added when there is greater certainty about road construction priorities
Vehicles, Plant and Provision has been made for a mix of leased and purchased vehicles Equipment depending upon operational requirements and availability of vehicles from NT Fleet. All other new Plant and equipment will be purchased, not leased. There is likely to be a significant requirement to replace key plant and equipment during the first year of operations
Landfill Restoration No provision has been made for restoration of landfills Provision
Borrowings No loan borrowings are proposed
Valuation of Fixed Issues relating to fixed asset ownership, valuation and related depreciation Assets expense will be addressed once a detailed asset management and valuation plan has been prepared.
Unrestricted Cash and The general lack of balance sheet information has prevented an assessment of Unrestricted Current unrestricted cash. This will not be determined until completion of the 2007/08 Ratio financial statements for each of the existing organisations that will form the new Shire
Page 31 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Financial Summary by Service A summary of proposed Operating Income and Expenditure for Core, Agency, Commercial and Other Services is contained in the following table:
2008/09 2009/10 2010/11 SERVICE BUDGET SUMMARY Estimate Estimate Estimate
OTHER COUNCIL SERVICES
EXPENDITURE Other - Swimming Pools 100,000 100,000 100,000
TOTAL EXPENDITURE 100,000 100,000 100,000
OPERATING RESULT - OTHER COUNCIL SERVICES 100,000 100,000 100,000
NET RESULT - OTHER COUNCIL SERVICES 100,000 100,000 100,000
CORE SERVICES
INCOME Core - Waste Management (including Litter Control) -90,100 -90,100 -90,100 Core - Local Road Upgrade and Construction 0 -100,000 -100,000 Core - Library and Cultural Heritage -148,783 -148,783 -148,783 Core - Governance -100,000 0 0 Core - Local Roads Maintenance -388,790 -388,790 -388,790 Core - Revenue Growth - - - 7,718,369 7,167,815 7,167,815 Core - Administration of Local Boards, Advisory Boards and Management -300,000 -300,000 -300,000 Committees Core - Cemeteries Management -15,000 -15,000 -15,000 Core - Companion Animal Welfare & Control -60,000 -60,000 -60,000
TOTAL INCOME - - - 8,821,042 8,270,488 8,270,488
Page 32 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
2008/09 2009/10 2010/11
EXPENDITURE Core - Local Emergency Management 30,000 30,000 30,000 Core - Waste Management (including Litter Control) 168,638 168,638 168,638 Core - Maintenance and Upgrade of Council Controlled Parks, Reserves 780,724 780,724 780,724 and Open Spaces Core - Local Road Upgrade and Construction 0 100,000 100,000 Core - Maintenance and Upgrade of Council Controlled Buildings, 119,277 119,277 119,277 Facilities and Fixed Assets Core - Information Technology and Communications 29,325 634,325 634,325 Core - Library and Cultural Heritage 181,148 181,148 181,148 Core - Civic, Cultural and Sporting Events 42,250 42,250 42,250 Core - Fleet, Plant and Equipment Maintenance 1,331,306 726,306 726,306 Core - Financial Management 254,260 254,260 254,260 Core - Human Resources Management 61,510 61,510 61,510 Core - Risk Management 200,000 200,000 200,000 Core - Public and Corporate Relations 69,214 69,214 69,214 Core - Training and Employment in Council Operations 43,563 43,563 43,563 Core - Governance 1,129,082 1,029,082 1,029,082 Core - Lighting for Public Safety including Street Lighting 60,000 60,000 60,000 Core - Local Roads Maintenance 1,079,120 1,079,120 1,079,120 Core - Records Management 0 0 0 Core - Shire Services Management 1,532,961 1,532,961 1,532,961 Core - Weed Control and Fire Hazard Reduction 60,000 60,000 60,000 Core - Advocacy and Representation on Local and Regional Issues 127,953 127,953 127,953 Core - Revenue Growth 59,147 59,147 59,147 Core - Traffic Management on Local Roads 30,000 30,000 30,000 Core - Asset Management 93,252 93,252 93,252 Core - Administration of Local Laws 128,099 128,099 128,099 Core - Administration of Local Boards, Advisory Boards and Management 337,549 337,549 337,549 Committees Core - Customer Relationship Management 0 0 0 Core - Council Planning and Reporting 185,261 185,261 185,261 Core - Cemeteries Management 55,000 55,000 55,000 Core - Companion Animal Welfare & Control 60,000 60,000 60,000
TOTAL EXPENDITURE 8,248,639 8,248,639 8,248,639
OPERATING RESULT - CORE SERVICES -572,403 -21,849 -21,849
NET RESULT - CORE SERVICES -572,403 -21,849 -21,849
Page 33 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
COMMERCIAL SERVICES 2008/09 2009/10 2010/11
INCOME Commercial - Power, Water and Sewerage -367,963 -367,963 -367,963 Commercial - Housing and Infrastructure Maintenance - - - 3,379,554 3,379,554 3,379,554 Commercial - Visitor Accommodation and Information -35,000 -35,000 -35,000
TOTAL INCOME - - - 3,782,517 3,782,517 3,782,517
EXPENDITURE Commercial - Power, Water and Sewerage 367,963 367,963 367,963 Commercial - Housing and Infrastructure Maintenance 3,379,554 3,379,554 3,379,554 Commercial - Visitor Accommodation and Information 35,000 35,000 35,000
TOTAL EXPENDITURE 3,782,517 3,782,517 3,782,517
OPERATING RESULT - COMMERCIAL SERVICES 0 0 0
NET RESULT - COMMERCIAL SERVICES 0 0 0
AGENCY SERVICES
INCOME Agency - Night Patrols - - - 1,314,059 1,314,059 1,314,059 Agency - Airstrips -40,000 -40,000 -40,000 Agency - Family -621,498 -621,498 -621,498 Agency - Sport and Recreation -549,760 -549,760 -549,760 Agency - Aged and Disabled Care - - - 1,486,581 1,486,581 1,486,581 Agency - Outstation Municipal -476,720 -476,720 -476,720 Agency - Centrelink -462,709 -462,709 -462,709
TOTAL INCOME - - - 4,951,327 4,951,327 4,951,327
EXPENDITURE Agency - Night Patrols 1,197,296 1,197,296 1,197,296 Agency - Airstrips 100,000 100,000 100,000 Agency - Family 621,498 621,498 621,498 Agency - Sport and Recreation 549,760 549,760 549,760 Agency - Aged and Disabled Care 1,486,581 1,486,581 1,486,581 Agency - Outstation Municipal 476,720 476,720 476,720 Agency - Centrelink 384,004 384,004 384,004
TOTAL EXPENDITURE 4,815,859 4,815,859 4,815,859
OPERATING RESULT - AGENCY SERVICES -135,468 -135,468 -135,468
NET RESULT - AGENCY SERVICES -135,468 -135,468 -135,468 Page 34 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
FINANCIAL SUMMARY 2008/09 2009/10 2010/11
INCOME - - - $17,554,886 $17,004,332 $17,004,332
EXPENDITURE $16,947,015 $16,947,015 $16,947,015
NET OPERATING RESULT -607,871 -57,317 -57,317
NET RESULT CASH SURPLUS -607,871 -57,317 -57,317
Page 35 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Financial Statements
A three year financial plan would normally include: Income and Expenditure Statement Balance Sheet Statement of Cash Flow
Barkly Shire Council is however a new Local Government Authority and for that reason detailed information concerning the balances brought froward from existing authorities that will now comprise the Barkly Shire will not be finalised until the end of the current financial year. Also information concerning current and forward estimates for these pre-existing authorities has not been sufficient to provide an accurate base line for the opening balance and consequential balance sheet and cash flow statements.
The Financial plan is therefore limited to an analysis of the services to be provided and estimates income and expenditure in relation thereto. Once the pre-existing Council accounts are completed and audited it will then be necessary to revise the financial plan taking into account the opening balances and known forward commitments.
The Income and Expenditure statement contains financial details for those agency service profiles where funding details were provided or could be reasonably estimated give that negotiations are underway and will continue throughout the year. A summary of the income statements is shown hereunder
Page 36 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
2008/09 2009/10 2010/11 INCOME AND EXPENDITURE BY TYPE Estimate Estimate Estimate
INCOME General Rate Income - Base -248,400 -248,400 -248,400 Garbage Charge Income - Base -60,100 -60,100 -60,100 Other Statutory Charge Income -435,000 -435,000 -435,000 User Charge Fee Income -2,206,095 -2,206,095 -2,206,095 Administration Fee Income -462,709 -462,709 -462,709 Operating Grant/Subsidy Income - Commonwealth Government -1,156,600 -1,256,600 -1,256,600 Operating Grant/Subsidy Income - State Government -729,337 -178,783 -178,783 Special Purpose Grant Income - Commonwealth Government -2,236,597 -2,136,597 -2,136,597 Special Purpose Grant Income - State Government -2,329,274 -2,329,274 -2,329,274 Grant/Subsidy Income - Other -1,469,385 -1,469,385 -1,469,385 Agency Service Fee Income -5,683,074 -5,683,074 -5,683,074 Service Fee Income -109,525 -109,525 -109,525 Contract Fee Income -40,000 -40,000 -40,000 Capital Grant/Subsidy Income - Commonwealth Government -388,790 -388,790 -388,790
Total Income -17,554,886 -17,004,332 -17,004,332
EXPENDITURE Salary Expense - Normal 7,844,190 7,844,190 7,844,190 Operating Lease Expense - Office Equipment 392,715 392,715 392,715 Operating Lease Expense - Vehicles 135,300 135,300 135,300 Software License and Maintenance Fee Expense 20,000 20,000 20,000 Contract Material and Labour Expense 4,077,791 4,077,791 4,077,791 Material Expense - General 3,955,419 3,350,419 3,350,419 Material Expense - Computer Consumables 0 605,000 605,000 Electricity Expense 18,400 18,400 18,400 Finance and Bank Fees 30,000 30,000 30,000 Insurance Premium Expense 200,000 200,000 200,000 Training Course Fee Expense 20,000 20,000 20,000 Travel Expense 29,600 29,600 29,600 Councillor Allowance Expense 183,600 183,600 183,600 Audit Fee Expenses 40,000 40,000 40,000
Total Expenditure 16,947,015 16,947,015 16,947,015
Result including capital movements -607,871 -57,317 -57,317
NET RESULT Cash Surplus -607,871 -57,317 -57,317
Page 37 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
The operating statement is summarised as follows:
08/09 09/10 10/11 INCOME AND EXPENDITURE STATEMENT Estimate Estimate Estimate
EXPENSES Employee Costs 7,844,190 7,844,190 7,844,190 Materials, Contracts, Services & Other Costs 8,262,004 8,767,004 8,767,004 Interest 0 0 0 Depreciation 0 0 0 TOTAL EXPENDITURE 16,106,194 16,611,194 16,611,194 REVENUES Rates & Charges Raised -2,216,195 -2,216,195 -2,216,195 Housing Rent -248,400 -248,400 -248,400 Dividends 0 0 0 Administration Charges 0 0 0 Contribution - Ratepayers 0 0 0 User Fees & Charges-Service Charges -15,000 -15,000 -15,000 Grants - FAG -1,616,597 -1,616,597 -1,616,597 Grants - NT Operating -2,029,274 -2,029,274 -2,029,274 Grants - FAG Road Funding -793,698 -793,698 -793,698 Grants - Roads To Recovery 0 -100,000 -100,000 Grants - Black Spot 0 0 0 Grants - Special Roads 0 0 0 Grants - CDEP Conversions -1,037,085 -1,037,085 -1,037,085 Grants - Other -4,162,176 -3,611,622 -3,611,622 Interest -530,000 -530,000 -530,000 Contract and Commercial Income -407,963 -407,963 -407,963 Other Income -4,398,498 -4,398,498 -4,398,498 Grants - Establishment Costs -100,000 0 0 TOTAL REVENUE -17,554,886 -17,004,332 -17,004,332
Change in net Assets Resulting from Operations -1,448,692 -393,138 -393,138
For a detailed three year financial statement Refer Appendix 9: Three Year Financial Plan
Page 38 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Financial Ratios:
Despite the limitations noted in the previous section it has been possible to prepare baseline financial ratios for the forward estimates:
Revenue Ratio 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
9 0 1 /0 /1 /1 8 9 0 0 0 1
This ratio indicates the proportion of Council income that is generated through rates (Rate Revenue/Total Revenue). The existing Councils are highly dependant upon grant income with just 19% coming from rates. The ratio is slightly lower for the Barkly Shire at 15% with 15% of total revenue derived from Council rates.
Liquidity Ratio 13.00 11.00 9.00 7.00 5.00 3.00 1.00 -1.00 /09 /10 /11 08 09 10
The liquidity ratio (Current Assets/Current Liabilities) indicates the council’s ability to meet creditors and other immediate cash outgoings. At this stage it is not possible to determine the opening position for cash on hand pending the finalisation of the annual accounts for the constituent Councils.
Page 39 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Opn Surplus / Total Revenue 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00%
9 0 1 /0 /1 /1 8 9 0 0 0 1
This ratio indicates the cash surplus that can be applied to capital works projects and new operating initiatives. The predicted ratio is less than industry standard but reflects the need to improve service delivery mainly through recurrent expenditure and fund capital through additional NTG and AG grants. The significant change from year 08/09 to 09/10 is due to the one off initial subsidy for IT infrastructure for the first year of operation.
Agency Dependancy 52% 52% 51%
51% 50% 50% 49%
9 0 1 /0 /1 /1 8 9 0 0 0 1
Agency dependency is calculated as the total revenue from agency contracts as a proportion of the Shire’s operating income. The graph does not include income or expenditure from CDEP, or new grant initiatives as the final decision concerning both the estimated level of expenditure and income was not available for incorporation in the draft budget.
Page 40 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
Key Conclusions
The new Shire will have a high dependency on revenues from fully funded agency services The financial analysis highlights that under the proposed Shire structure the Council will have annual revenues totalling at least $17.5 million in the first year of which at least $8.7 million ( 50%) will be generated from the delivery of agency and commercial services. A number of additional agency and commercial contracts are expected to be added to the Shire’s planned operations in 2008.
Agency dependency will grow as additional contracts are finalised. It will be important to ensure that all agency contacts are negotiated and operated on a commercial basis
There is a significant reliance on grant funding Despite an increase in the rating base of the Council there remains a significant reliance on grant funding. Under the proposed model rate revenue comprises approximately 14.1% of total revenue.
Road funding will be a key driver of the new Shire’s Financial Plans Funding of road infrastructure is likely to be a significant risk to the new Shire. Assuming that the Shire will progressively take over maintenance of the road network previously undertaken by DPI, then financing the ongoing improvement and maintenance of the roads will be a major ongoing service delivery issue that will require the development of road asset management plans and long term prioritisation of the work required under those plans.
There is no provision for new borrowings under the proposed Financial Plan The use of debt is a legitimate means of financing major new or replacement infrastructure projects. Further discussion and analysis needs to be undertaken as to the appropriateness of utilising borrowings for financing long term capital works and asset refurbishment, and the future capacity of the Shire to service debt.
The Shire’s opening liquidity position is to be determined The Council’s opening cash position will be known once the annual accounts for the pre- existing Council’s are completed and audited. The funds remaining in the pre-existing Council accounts will become assets of the Barkly Shire on transition and can be incorporated in a future revision of the business plan. For the purposes of the business plan preparation it is assumed that current cash balances will be maintained over the life of this plan
Page 41 Draft Version 2 for community consultation May 2008 Barkly Shire Council
Shire Plan – Second Draft for Consultation
There is a need to resolve issues relating to Shire assets The asset registers of existing councils and further asset information collected by DLGHS over the last 12 months has formed the basis of the asset analysis. However the following issues need to be addressed by the incoming senior administration: The accuracy of existing council asset registers, in particular the inclusion of assets that are obsolete or unable to be located leading to an overstatement of assets in the Shire’s balance sheet. Inadequate valuation of gifted assets The likely condition of assets when the shire takes formal possession on 1 July 2008 The ownership (and liability) in relation to fixed assets, given that many were built on Aboriginal Land without leases from the relevant Land Trust. The impact of the Australian Government ‘intervention’ leasing arrangements; and the move to a public housing model in respect to indigenous housing. The ongoing responsibility (and management authority), if any, of the shire in relation to fixed assets that will be used by third party providers to deliver services previously delivered by local government
The Barkly Shire will undertake an asset inventory, post July 1st, 2008 and use this as the basis for the preparation of the asset management and replacement strategy for the future.
Prior to transfer of assets to the Shire and subsequent insurance of the assets, it is intended that Shire assets will be re-valued as necessary.
Page 42 Draft Version 2 for community consultation May 2008