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Budget and Operational Plan 2019 - 2020 Table of Contents Part 1: Overview of Budget and Operational Plan 1.1 Mayor’S Message

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Budget and Operational Plan 2019 - 2020 Table of Contents Part 1: Overview of Budget and Operational Plan 1.1 Mayor’S Message Budget and Operational Plan 2019 - 2020 Table of Contents Part 1: Overview of Budget and Operational Plan 1.1 Mayor’s Message.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..2 Budget Overview. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .3 Operational Services. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 4 Major Projects Undertaken.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .5 Capital Works. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 6 Budget at a Glance .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..7 1.2 Preamble .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .9 1.3 Corporate Planning Framework . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .10 1.4 Corporate Plan Goals and Key Strategies . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..11 1.5 Services Provided to the Community. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .15 1.6 Measuring Achievement of the Budget and Operational Plan.. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..16 Part 2: Annual Operational Plan 2019-2020 2.1 Annual Operational Plan 2019-20 . .. .. .. .. .. .. .. .. 18 Part 3: Revenue and Rating Strategy 2019-2020 3.1 Revenue Policy .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. 27 3.2 Revenue Statement.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 32 3.3 Rates, Rebates and Remissions Policy .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. 67 Part 4: Budget 2019-2020 4.1 Budget Principles .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..75 4.2 Significant Influences .. .. .. .. .. .. .. .. .. .. .. .. ... .. ... .. .. ... ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .77 4.3 Key Assumptions of the Long Term Financial Forecast.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..78 4.4 Financial Statements 4.4.1 Statement of Income and Expenditure .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 79 4.4.2 Statement of Financial Position .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 80 4.4.3 Statement of Cash Flows .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... ..81 4.4.4 Statement of Changes in Equity .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .82 4.4.5 Measures of Financial Sustainability .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... ..83 4.4.6 Total Value of Change in Rates & Charges Levied from 2018-19.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..85 4.5 Asset Management.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 86 4.5.1 Capital Works Program - Summary by Asset Class .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .87 4.5.2 Long Term Capital Works Program.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..88 4.6 Financial the Capital Works Program .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .95 Part 5: Financial Management Policies 2018-2019 5.1 Debt Policy .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .97 5.2 Investment Policy .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..101 Part 6: Commerical Business Unit Activities 2018-2019 6.1 Commentary on Commercial Business Activities .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..108 6.2 Commercial Business Activities Estimated Activity Statement.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .109 Part 7: Appendices 7.1 Estimated Financial Position as at 30 June 2018.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 111 7.2 Glossary.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..114 Part One Overview Mayor’s Message The 2019-20 Budget is the seventh budget that Council has delivered since our community regained independence in 2014. The continuing overarching focus of the budget has been on consolidation and responsible long term financial sustainability while striving to deliver the best possible levels of service delivery for our community. In framing the budget Council has remained mindful of the challenges residential ratepayers, commercial enterprises and operators, and primary producers have had to face with the general cost of living and other significant increases in the cost of goods and services. This has been reflected in Council’s efforts to keep rates and charges increases to a minimum. For Owner Occupied categories, most urban residential ratepayers will receive a combined average increase in General Rate, Utilities and other charges of approximately 2.2% which equates approximately to $1.69 per week. For Large Residential with utilities and services the average combined increases will be 2.23% or $1.93 per week. Large Residential without services (predominantly rural) will receive an average combined increase of 2.3% or $1.10 per week. (Noting that the dollar increase amounts for properties with higher than average valuations will be more and those with lower valuations will be less.) Pensioners and eligible concession card holders will receive an additional twenty dollar rebate increase, increasing the maximum rebate from $280.00 to $300.00. For Non-Owner Occupied Residential (NOOR) categories urban properties will receive a combined increase in General Rate, Utilities and other charges of 2.24% or approximately $1.64 per week. For NOOR Large Residential properties with utilities and services the average combined increases will be 2.2% or $1.97 per week. NOOR Large Residential without services (predominantly rural) will receive an average combined increase of 2.24% or $1.14 per week. (Noting again that the dollar increase amounts for properties with higher than average valuations will be more and those with lower valuations will be less.) All commercial and primary production properties will have an average general rate increase of 2.4% A key element of the budget is Council’s ongoing commitment to delivering the infrastructure needed to facilitate future growth and economic development for our Shire with the investment of $36.1 million in new capital works which includes $9.9 million of external funding from State and Federal sources. In total, just over $14.5 million or 41% of Council’s capital expenditure will be directed to roads and associated transport infrastructure along with an additional $5.8 million of operational expenditure for maintenance programs. Council’s proactive commitment to the streamlining of the organisational structure and operating efficiencies has realised cost saving in excess of $4.0 million annually and resulted in an underlying operating surplus of $98,000. With no new borrowings planned until 2024 overall debt will continue to decrease to $75.5 million by June 30 2020 and on track to reduce by approximately 80% to $18.5 million by 2028. The total value of the community’s net assets has increased over the past 12 months to a current value of $914.8 million and forecast to reach approximately $1.05 billion by 2028. That positive result has been made possible by Council’s continuing successes over the past six years in proactively securing State and Federal funding to deliver for our community, including this year’s capital budget, more than $310.1 million in critical trunk infrastructure and major job creating
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