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Draft Iron Knob Community Plan and Budget 2015-2016

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Draft Iron Knob Community Plan and Budget 2015-2016 IRON KNOB COMMUNITY PLAN 2013-2016 INCORPORATING 2015-2016 FINANCIAL PLAN AND BUDGET TABLE OF CONTENTS PAGE PARTNERSHIP WITH THE OUTBACK COMMUNITIES AUTHORITY 3 HOW THE OCA WILL DELIVER ASSISTANCE TO THE IRON KNOB COMMUNITY 4 IRON KNOB COMMUNITY PLAN 2013 – 2016 5 INTRODUCTION (ABOUT IRON KNOB) 6 VISION, MISSION & KEY ISSUES 7 KEY GOALS & OBJECTIVES 8 IMPLEMENTATION 18 2015-2016 BUDGET 19 Iron Knob Community Plan 201 3-2016 Incorporating 2015-2016 Financial Plan Budget Page 2 of 21 PARTNERSHIP WITH THE OUTBACK COMMUNITIES AUTHORITY (SUMMARY OF SITUATION) The Outback Communities (Administration and Management) Act 2009 (the ‘Act’) provides for the Outback Communities Authority (OCA) to manage the provision of public services and facilities to outback communities. To this end the Iron Knob Progress Association Incorporated (IKPA) has asked the OCA for assistance in the day-to-day administration of the IKPA’s affairs. In making this request the IKPA has stated that due to increasing demand on the community volunteers they are finding it increasingly difficult to manage the day-to-day demands of running the community’s services. The IKPA has also asked that the OCA consider the application of a Community Contribution Scheme (CCS) as a mechanism for equitable cost sharing for the delivery of services provided by the IKPA for the benefit of the whole community. Any assistance provided by the OCA that includes the application of a CCS requires a process defined in the Act, specifically sections 14 (Public Consultation Policy), 17 (Community Affairs Resourcing and Management Agreements) and 21 (rates on Land – Asset Sustainability Levies and Community Contributions) apply. This Community Plan builds upon the existing Iron Knob Community Plan 2013 – 2016 by adding a twelve month financial plan and budget to achieve those community planning targets able to be achieved in the next financial year. The financial plan and budget also incorporates the day-to-day business of the IKPA in providing services to the Iron Knob Community. This Community Plan is subject to community consultation in accordance with the OCA’s ‘Community Engagement – Our Commitment’ policy approved at the OCA’s September 2013 meeting. Subject to the outcome of the consultation, the OCA will seek Ministerial approval for the application of the provisions outlined in section 21 of the Act and apply a CCS to Iron Knob for the period 1July 2015 to 30 June 2016. The amount being $240 per property unit payable in four instalments of $60. Prior to the end of the period of administrative assistance provided by the OCA, the OCA will, in partnership with the IKPA, undertake a review of the support provided by the OCA and determine whether or not it should be extended. In any event the community of Iron Knob will be kept fully informed. Iron Knob Community Plan 201 3-2016 Incorporating 2015-2016 Financial Plan Budget Page 3 of 21 HOW THE OCA WILL DELIVER ASSISTANCE TO THE IRON KNOB COMMUNITY The activities of the IKPA will be delivered through the Office for the OCA. These activities include: • Efficient and effective support to Iron Knob residents and community organisations. • Efficient and effective management of daily activities of the IKPA i.e. accounts payable, accounts receivable, etc. • Management of procurement and contracts in accordance with State Government guidelines to deliver services to the Iron Knob Community. • Efficient and effective management of statutory obligations assigned to the IKPA. • Provide sound evidence-based advice to the OCA and IKPA within specified timeframes. • Communication and promotion of the IKPA’s objectives and strategic direction to Stakeholders and the general public. • Management of Infrastructure Asset Management Plans for Iron Knob infrastructure. • Development and implementation of alternative management models for the effective and efficient provision of community based essential services. • Efficient and effective purchasing processes that comply with Agency guidelines. • The preparation and submission of applications for the replacement and upgrade of IKPA and community owned infrastructure as identified in the Infrastructure Asset Management Plans. • Support and assistance to community based organisations to seek external investment into Iron Knob. • A link for key service provider agencies to community based organisation and residents. • Fostering and support of the effective involvement of all segments of the community in community decision making processes, especially youth, aged, Indigenous, disabled and other minority groups. Iron Knob Community Plan 201 3-2016 Incorporating 2015-2016 Financial Plan Budget Page 4 of 21 IRON KNOB COMMUNITY PLAN 2013 - 2016 This is an updated version of the first Community Plan prepared by the IKPA. It is a statement of what we will do and how we will assist for the balance of this financial year. It incorporates other operational documents, as follows: • The Financial Plan which sets out priorities and timelines for strategies in the Community Plan, and helps to plan the OCA’s budget for funding of projects. • The Budget which articulates income and expenditure for the financial year 1– July 2015 to 30 June 2016. Although not replicated in this plan, consideration has been given to the work that Arrium undertook with the Iron Knob Community from July to September 2013. Arrium are a key stakeholder in Iron Knob and will continue to partner with the community to enable it to build a sustainable future through community planning and partnership processes. Reference – “The Way Forward” – A Guidance Plan for Iron Knob and Arrium Working Together: Mining and beyond. September 2013. Iron Knob Community Plan 201 3-2016 Incorporating 2015-2016 Financial Plan Budget Page 5 of 21 INTRODUCTION (ABOUT IRON KNOB) Iron Knob, with a current population of approximately 150 is regarded as the birthplace of the Australian Steel Industry and is widely recognised as the first iron ore mine in Australia. The ore body was first mined in 1880, however early companies had not been able to maintain product and their leases lapsed. BHP took over the lease in 1896 and started mining in 1899 in order to secure ironstone as a flux to smelt the silver-lead ores at Port Pirie. Until the 1960’s all of BHP’s major steelmaking operations at Newcastle, Port Kembla, Port Pirie and Whyalla were supplied with iron ore from Iron Knob. At that time and until the discovery of the huge iron reserves in the Pilbara Region in Western Australia, the Iron Knob deposit was the largest iron ore reserve in Australia. Prior to the discovery of the iron deposit, pastoralists were establishing the area and by 1854 Cooroona Hill (now known as Corunna Station) had been established and Iron Knob named. Iron Knob is located 68km southwest of Port Augusta and 52km northwest of Whyalla and 152m above sea level in the heart of a semi-desert area. The town got its name from the very large piece of iron ore, which protruded from the side of the hill. However over one hundred years of mining has reduced the height of Iron Knob by more than 150 metres. In its heyday, Iron Knob was home to over 2,000 people, however changes in technology and work practices reduced the need for labour at the mine and in 1997-98 the mine closed. BHP “spun off” a new company OneSteel, which has since changed its name to Arrium. A defining moment in Arrium’s history occurred in 2005 when its Board decided to enter the export iron ore market through Project Magnet. This was achieved through converting its Whyalla Steelworks to magnetite iron ore feed from the Middleback Ranges, thereby freeing up the more marketable and valuable haematite ore from the Middleback Ranges for external sale. Project Magnet was originally premised on delivering 4mtpa at completion. This was achieved in 2007 on time, and was subsequently increased to 5mtpa in 2009 and to 6mtpa in 2010, through ‘sweating’ the supply chain. The business is expected to be able to maintain export iron ore sales of approximately 6mtpa from the Middleback Ranges for at least 10 years based on its reserves and resources, and the beneficiation of low grade ore. Mining continues at Iron Knob and Arrium has extended its rail network to its Iron Knob mine site adjacent to the Iron Knob golf course. The likely event of some compensation coming to the community as a result of this mine and its impact on the amenity of Iron Knob has prompted a number of changes to this Plan. Today the town, which was once jointly administered by BHP and the State has been handed back to the community to deal with the complexities of community governance and the raising of revenue to maintain the local services and infrastructure. This is perhaps in all its history, the biggest challenge facing the Iron Knob community. The IKPA and the OCA officially represent the Iron Knob Community Plan 201 3-2016 Incorporating 2015-2016 Financial Plan Budget Page 6 of 21 town. These organisations have already taken steps to increase the number of services available within the community and provide support to existing services. Iron Knob Community Plan 201 3-2016 Incorporating 2015-2016 Financial Plan Budget Page 7 of 21 VISION A vibrant community, proud of its past and cohesive in securing its future potential. MISSION The IKPA will work with the community to maintain and improve services and facilities consistent with our lifestyle in securing our future. KEY ISSUES The community is faced with the task of maintaining and funding recreational and sporting facilities, as well as the town’s parks and gardens and community buildings. Likewise the town’s roads, footpaths and other essential infrastructure is nearing its optimum life capacity and will require upgrading and repairs.
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