2015-16 Community Budget Report
Building for the future Contents
• Scenic Rim Community Budget Report ...... 3 • Rates & Charges ...... 24 Introduction Revenue Strategy Legislative Framework Rating Environment Your Council Revenue Statement Corporate Plan & Planning Framework • Operating Budget ...... 2727
• Budget Highlights ...... 97 Recurrent Revenue Council delivers $74.9 million 2015-16 budget Recurrent Expenditure Road infrastructure investment remains key Operating Position Building bridges creates legacy for future • Capital Budget ...... 2828 Mission accomplished for disaster restoration Capital Funding Vibrancy funds boost for communities Capital Expenditure Drainage improvements for communities Capital Works Program 2015-16 Community facilities benefit in budget
Beautifying our parks and gardens • Budgeted Financial Statements 2015-16 ...... 3131 Projects put towns on right path Community grants build social fabric • Operational Plan 2015-16 ...... 3737 Supporting our emergency services • Financial Sustainability Strategy 2016-25 ...... 79 $20,000 to maintain healthy and active lifestyles
Planning scheme nearing completion • Budget Documentation ...... 114 Council libraries continuing improvements Revenue Statement Support for regional events Revenue Policy Environmental programs to nurture nature Debt Policy
• Cover photo Newman Bridge across the Albert River at Darlington in 2014. The timber bridge was replaced with a concrete structure as part of Council’s capital works program.
2 Introduction
It gives me great pleasure to This has required strong spent exclusively on the delivery introduce Scenic Rim Regional leadership and decisions which of disaster restoration programs. Council’s 2015/16 Budget, my have not always been popular eighth as Mayor and the final to ensure our service levels In 2015-16 Council will continue budget of the 2012-16 term of to the community have been to progress the shared vision Council. In addition to laying maintained and the organisation for the Scenic Rim captured in the Community Plan through out a financial road map for the has remained financially initiatives such as our region forthcoming year and beyond, it sustainable, again a long way wide Vibrant and Active Towns is also an opportunity to reflect from where we started in 2008. and Villages project, Million Trees on our past achievements and The first two terms of Council program and the continued how we intend to build on these. have laid a strong foundation for A message from development of a new unified the future and a positive legacy. Building remains at the forefront Cr John Brent, Mayor planning scheme for the Scenic Rim. of our commitment to deliver the ageing timber bridges within The Budget bottom line for the the infrastructure and services the Scenic Rim. We will have forthcoming financial year will Council remains committed to needed by the Scenic Rim achieved this within the space of be $79.4 million, with more than working with business, industry community, with Council making six years, an impressive feat by half of Scenic Rim’s residential and government to generate jobs another record investment in any measure. ratepayers receiving a general and opportunities in our region, roads and bridges in 2015-16 of rate rise of 2.5% or less, the particularly through our support It has been a long journey from $22.68 million. This represents lowest since amalgamation. for major economic catalysts the formative years of Council a funding increase of more than such as the Beaudesert Town to our present outlook and one For the first time in six years, 40% over the past six years, up Centre Bypass in partnership which has been defined by Council’s Budget will not from $16 million in 2010-11. with the State. constant change, particularly include significant funding The maintenance and reductions in the level of financial under the Natural Disaster Relief improvement of our bridge support from other levels of and Recovery Arrangements network is an important focus government, which has required (NDRRA). In past years this of this expenditure and by the the organisation to become more funding bolstered what would be end of 2015/16, we expect to resilient and reliant on its own our normal budget bottom line have replaced close to 20% of sources of revenue. by approximately 30% but was
Scenic Rim Regional Council’s growing regions of Queensland. funding assistance under the 2015-16 Budget reflects the Natural Disaster Relief and organisation’s determination to Council’s projects and initiatives Recovery Arrangements for effectively manage infrastructure for the forthcoming year are contract capital works to restore and service delivery for the underpinned by a $79.4 million damaged infrastructure. Scenic Rim community in a Budget. Our continuing financial manner which is both financially At first glance, this outcome approach sees us constantly sustainable and responsible. is more modest than recent reviewing our resourcing and Our performance as a budgets, but in 2015-16 Council processes to ensure the work prudent fiscal manager has will return to what is best we do represents value for been acknowledged by the A message from described as a normal operating money for our community. Queensland Audit Office, Craig Barke, CEO environment for the first time In this regard, I acknowledge which last month again ranked since the region was beset term position remains a key the commitment of Council’s the organisation among the by three consecutive years of objective of the organisation and staff in working in partnership most financially sustainable disaster events in 2010-11, this outlook provides a strong with the community to deliver on local government areas 2012 and 2013. foundation for Council to build the outcomes captured in the in Queensland for a third Scenic Rim Community Plan. successive year. upon in meeting the growing Budget outcomes over the past needs of the Scenic Rim, which several years have included A financially sustainable long- remains one of the fastest a substantial component of
3 Legislative Framework
Scenic Rim Regional Council is required to prepare an annual budget in accordance with the requirements of Part 3 of the Local Government Act 2009. This legislation is the framework which governs the system of financial management that must be established for Council to ensure it is financially sustainable.
Section 169 of the Local Government Regulation 2012 states that a local government’s budget for each financial year must include: • financial statements for the financial year for which it is prepared and the next 2 financial years • a long-term financial forecast • a revenue statement • a revenue policy • each of the relevant measures of financial sustainability for the financial year for which it is prepared and the next 9 financial years: 1. asset sustainability ratio 2. net financial liabilities ratio 3. operating surplus ratio • the total value of the change, expressed as a percentage, in the rates and utility charges levied for the financial year compared with the rates and utility charges levied in the previous budget
Section 169 of the Local Government Regulation 2012 also states the budget must be consistent with the following documents: • 5-year corporate plan • annual operational plan
Council also produces a number of other documents to meet the requirements of legislation and guide its budget process. These documents include: • Register of Fees and Charges • Investment Policy • Debt Policy
Revisions to the Local Government Act 2009 were introduced in the Local Government and Other Legislation Amendment Bill 2012.
These changes reinforced the responsibilities of mayors in providing a strategic role in the economic, social and environmental management of a local government area.
Under Section 12 (4b) of the Act, the Mayor’s responsibilities now include “preparing a budget to present to the local government”.
4 Your Council DIV DIV 3 1 DIV 2 MAYOR DEPUTY MAYOR Cr John Brent Cr Virginia West Cr Nigel Waistell Cr Nadia O’Carroll [email protected] [email protected] [email protected] [email protected] Ph 5540 5105 Fax 5540 5103 Ph 5540 5403 Fax 5540 5103 Ph 5540 5401 Fax 5540 5103 Ph 5540 5402 Fax 5540 5103
DIV 4
Mutdapilly Peak Mt Walker Crossing Harrisville Warrill View
6 Kagaru Cr Jennifer Sanders Rosevale Munbilla Tamborine [email protected] Silverdale Ph 5540 5404 Fax 5540 5103 Wyaralong Allenview Roadvale Dam Wyaralong Eagle Veresdale Scrub 1 Heights Kalbar 2 North Gleneagle Tamborine Fassifern
Bromelton DIV 5 Tarome Aratula BEAUDESERT BOONAH Dugandan Il-bogan 4 Canungra Lake Moogerah Mt Alford
Kooralbyn Laravale Kerry Cr Rick Stanfield Beechmont [email protected] Croftby 5 Ph 5540 5405 Fax 5540 5103 Maroon 3 Dam Maroon Darlington Rathdowney Carneys Hillview Creek Barney View Lamington DIV 6 Running Creek
Cr Duncan McInnes [email protected] Ph 5540 5406 Fax 5540 5103
5 Corporate Plan & Planning Framework
The 2015-16 Community Budget Report sets out specific program deliverables and projects that the Scenic Rim Regional Council proposes to deliver for the community in the 2015-16 financial year. The Community Budget Report shows the alignment to Council’s Corporate Plan. The Corporate Plan documents Council’s long-term strategic direction to achieve the vision for the future of the Scenic Rim expressed in the Scenic Rim Community Plan 2011-2026. Regional Vision By 2026, Scenic Rim will be a network of unique rural communities embedded in a productive and sustainable landscape. We will enjoy a high quality rural lifestyle in self-reliant communities that provide a choice of quality local food, products, services and recreation opportunities. Our residents will have affordable transport options and ready access to the broader South East Queensland region. Our community will support sustainable farms, businesses and industries that are compatible with our environment and lifestyle and provide rewarding employment and prosperity for residents. Residents will benefit from the region’s productive farmland, stunning natural environment and character filled towns and villages which attract tourists and visitors and provide ecosystem services for the broader South East Queensland community. Scenic Rim will be an inclusive, caring and creative environment with healthy and active residents. The region will provide a happy, safe and nurturing environment for children and families. We will participate in planning and managing our communities and act to ensure the Scenic Rim is enhanced for future generations.
Strategic Themes Theme 1: Spectacular Scenery and Healthy Environment Theme 5: Vibrant Towns and Villages Theme 2: Sustainable and Prosperous Economy Theme 6: Accessible and Serviced Region Theme 3: Open and Responsive Government Theme 7: Healthy, Engaged and Resourceful Communities Theme 4: Relaxed Living and Rural Lifestyle Theme 8: Organisational Sustainability
Council Planning Framework Scenic Rim’s integrated planning and reporting process, including the Community Budget Report incorporating the Annual Budget and Operational Plan, is illustrated by the diagram below.
SCENIC RIM COMMUNITY PLAN
The community’s long term vision for the region LONG TERM FINANCIAL PLANS ASSET MANAGEMENT PLANS
Approach to financial management CORPORATE PLAN How community assets will be that ensures long term sustainability managed and maintained Values and strategies to deliver the community’s vision PLANNING SCHEME
OPERATIONAL PLAN Manages growth, plans and secures new infrastructure ANNUAL BUDGET Services and initiatives Council will deliver in the current year CAPITAL WORKS PROGRAM Revenue and expenditure to deliver Operational Plan ANNUAL REPORT 10-year infrastructure construction, renewal and maintenance program Reports progress on Corporate and Operational Plans
6 Budget Highlights
$22.68m $6.41m $1m Roads and Bridges Waste Operations Vibrant Towns & Villages
$5.83m $4.80m Facilities Community & Culture
$2.79m $4.31m $2.54m Planning Health, Building & Environment Parks & Gardens
7 Budget Highlights
COUNCIL DELIVERS $79.4 MILLION 2015/16 BUDGET
Scenic Rim Regional Council has delivered a $79.4 million 2015-16 Budget with improvements to the region’s roads and bridges remaining a priority for expenditure.
Mayor John Brent said in 2015-16 Council would inject almost $22.7 million into road and bridge maintenance and improvements.
“Spending on roads and bridges will increase by 7% in 2015-16, another record commitment to building the infrastructure our growing region needs,” he said.
“Over the past six years we have increased expenditure in this vital area by more than 40%. This is in addition to the support we have received under the Natural Disaster Relief and Recovery Arrange- ments to restore damaged infrastructure.
“Our focus remains firmly fixed on the delivery of core services and infrastructure to the Scenic Rim community, providing value for money outcomes for our ratepayers and the long-term financial sustainability of Council.
“In 2015-16 we will continue to invest in the maintenance of our community facilities with an increase in expenditure of almost 4%, while community and cultural services will benefit from a 2.5% boost.”
Key expenditure for Council 2015-16 includes: Roads and Bridges $22.68 million, Waste Operations $6.41 million, Facilities $5.83 million, Parks and Gardens $2.54 million, Community and Culture $4.80 million, Planning $2.79 million, Health, Building and Environment $4.31 million, Vibrant and Active Towns and Villages $1 million.
Cr Brent said Council had sought to deliver a 2015-16 Budget which was both fiscally responsible and financially sustainable, and which allowed the organisation to continue to build for the future.
“Council’s operating expenditure per capita has remained constant for the past three years. Additional revenues generated through rating outcomes and efficiency savings achieved by Council have been directed to new capital initiatives, such as our Vibrant and Active Towns and Villages program,” he said.
Cr Brent said in 2015-16, there would be an increase in the minimum general rate of 2.5% for owner- occupied residential properties in the Scenic Rim.
“The outcome of this determination means that in real terms more than half the households in our region will receive a rate increase of 2.5% and, in some cases, less than this,” he said.
8 ROAD INFRASTRUCTURE INVESTMENT REMAINS KEY
A record $18.62 million investment in infrastructure improvement will drive Council’s roads program in 2015-16. It forms part of a $22.68 million commitment to road and bridge projects across the region.
Mayor John Brent said Council had budgeted more than $6.6 million for the maintenance of roads and bridges.
He said a further $12 million had been allocated to road reconstruction and renewal throughout the region.
“The improvement of Scenic Rim’s road and bridge network remains an absolute priority of this Council,” Cr Brent said.
“Since 2010-11, Council has increased spending on roads and bridges by more than 40% from $16.07 million to $22.68 million in the forthcoming year.
“It reflects our commitment to the Scenic Rim community that infrastructure repair and renewal is appropriately funded to ensure a safe and sustainable road network.
“It is a significant task as Council is responsible for a sealed and unsealed regional road network spanning more than 1700 kilometres across a geographic footprint of some 3400 square kilometres.”
Key road infrastructure projects during the forthcoming year include improvements at: • Veresdale Scrub Rd (Fields Rd to Worip Dr) at Veresdale ($1 million) • Roland Crt at Peak Crossing ($800,000) • Sandy Creek Rd at Bromelton ($750,000) • Anna and Eaglesfield St intersection ($223,000) • Kooralbyn Rd at Kooralbyn ($53,000) • Birnam Range Rd at Birnam ($205,000) • Christmas Creek Rd (Foxley and Lamington bridge approaches) at Lamington ($1.6 million) • Kilmoylar Rd at Kagaru ($742,000)
In 2015-16, $2.86 million has also been allocated for bitumen road resealing and more than $2 million for the resheeting of gravel roads and shoulders.
9 Budget Highlights
BUILDING BRIDGES CREATES LEGACY FOR FUTURE
More than $4 million will be invested in the replacement and rehabilitation of bridges throughout the Scenic Rim in 2015-16.
Mayor John Brent said Council was continuing to deliver on the goals of its Bridges Strategy which focuses on renewing the region’s ageing timber bridges, with more resilient concrete or steel structures. Four bridges are planned for replacement in 2015-16 at a cost of more than $2.8 million.
“By the end of 2015-16, Council expects to have replaced close to 20% of the ageing timber bridges within the Scenic Rim. We will have achieved this within the space of six years, an impressive feat by any measure,” Cr Brent said.
“Council recognised some years ago that we needed to have a long-term program in place to maintain and progressively replace the numerous timber bridges across the region, some of which date back over 60 years. I think our achievements in delivering on this will stand as an important legacy of this Council.”
Cr Brent said Council was responsible for 135 bridges region wide and since 2011 had reduced the number of timber bridges on that list from 97 to 86.
“The replacement of Lamington and Foxley bridges on Christmas Creek Rd, which was funded in the 2014-15 Budget and will be completed in early in the new financial year, will reduce this figure to 84. The four bridge replacements planned for 2015-16 will reduce the number of timber bridges in our network to 80,” he said.
Timber bridges planned for the replacement in 2015-16 are Camp Creek Bridge at Running Creek ($1.3 million) and Tramway Bridge at Christmas Creek ($1.3 million). Nugent Bridge at Kooralbyn ($128,000) and Cashell Bridge at Palen Creek ($128,000) will also be replaced, but with pipe culvert crossings.
“In undertaking our bridges program, Council seeks to deliver outcomes which provide value for money for ratepayers while maintaining a comparable level of service to the community,” he said.
In addition, $600,000 will be spent undertaking major rehabilitation work to Dwyers Bridge (Peak Crossing), Ferrar Bridge (Tamrookum), Cahill Bridge (Christmas Creek) Drynan Bridge (Mount Gipps) and Storey Bridge (Birnam).
A further $450,000 will be directed towards minor bridge rehabilitation projects regionwide, while $213,000 has been allocated to floodway reconstruction.
10 MISSION ACCOMPLISHED FOR DISASTER RESTORATION
For the first time in six years, Council’s budget bottom line for the forthcoming year will not include funding under the Natural Disaster Relief and Recovery Arrangements (NDRRA).
Mayor John Brent said Council expected to finalise the balance of its disaster restoration program arising from 2013’s ex-Tropical Cyclone Oswald by the end of the 2014-15 year, bringing to an end a rolling reconstruction program which commenced following the “Summer of disasters” in 2010-11.
“It has been a long journey and a significant chapter in the history of this Council, but in moving forward into 2015-16 we can say mission accomplished on disaster restoration,” Cr Brent said.
Cr Brent said the NDRRA program, funded jointly by the State and Federal governments, had provided almost $110 million in restoration funding over the lifespan of the program.
“This bolstered what would be our normal budget bottom line by approximately 30% over a number of years, but was spent exclusively on the delivery of disaster restoration programs approved by the Queensland Reconstruction Authority,” he said.
“Council also invested $7.95 million in the delivery of complementary works in association with NDRRA funded projects where it represented value for money or a long-term improvement plan was in place.”
Cr Brent said the Scenic Rim had experienced three consecutive seasons of natural disasters in 2010- 11, 2012 and 2013 which exacted a heavy toll on local infrastructure, particularly roads and bridges.
“This resulted in an unprecedented program of repair and reconstruction throughout the Scenic Rim, supported by the State and Federal governments under the NDRRA program. Delivery of this significant restoration program, which compounded in cost and complexity due to the impact of three years of declared disaster events, has been a major focus for Council for several years,” he said.
“What we have been able to achieve for the Scenic Rim community over this period has been nothing short of outstanding. I commend all those connected with the restoration program including Council staff and management, project managers AECOM and our numerous restoration contractors.”
Cr Brent said he also acknowledged the support of the Queensland Reconstruction Authority, responsible for oversight of works delivered under the NDRRA program.
“The assistance of the State and Federal governments under NDRRA was crucial to restoring our damaged infrastructure and we have worked in partnership to deliver the best outcome possible for the Scenic Rim community,” he said.
11 Budget Highlights
VIBRANCY FUNDS BOOST FOR COMMUNITIES
$1 million has been committed to the continuation of Council’s Vibrant and Active Towns and Villages initiative in 2015-16
Council launched the long-term initiative in 2014-15, funding a range of capital projects in Aratula, Beaudesert, Boonah, Canungra, Tamborine and Tamborine Mountain, in addition to a community development program.
Mayor John Brent said the Vibrant and Active Towns and Villages initiative would continue to deliver infrastructure improvements across the region well into the future.
“Last year we committed to deliver a range of infrastructure improvements, some subtle, some significant, to enhance the character of towns and villages throughout the Scenic Rim,” Cr Brent said.
“We made significant progress in year one and in 2015-16 we will continue to focus on outcomes which respond to the current and future needs of our community and create vibrant and active spaces, enhancing our public facilities or entirely new projects.”
Cr Brent said Vibrant and Active Towns and Villages was an outcome of the Scenic Rim Community Plan 2011-26 which was developed in partnership with the local community.
12 DRAINAGE IMPROVEMENTS FOR COMMUNITIES
$500,000 has been allocated to drainage and stormwater management improvements in 2015-16.
Mayor John Brent said six major projects with a combined cost of $360,000 were planned, while an additional $140,000 has been allocated to delivering minor works region wide.
“Council is committed to the effective management and improvement of stormwater infrastructure,” he said.
“We increased the long-term allocation of funding to drainage improvements by 250% in 2013-14 continued this rate of expenditure in 2014-15 and now 2015-16.”
Key drainage improvement projects funded in 2015/16 include: • Adam Dr, Aratula ($50,000) • Sumba Crt, Tamborine Mountain ($20,000) • Huyber La, Tamborine Mountain ($40,000) • Katmai Ct Tamborine Mountain ($80,000) • Hartley Rd (East) and Mount Tamborine ($40,000) • Ocean View Pde, Tamborine Mountain ($130,000)
13 Budget Highlights
COMMUNITY FACILITIES BENEFIT IN BUDGET
More than $5.8 million will be directed towards the maintenance and operation of Scenic Rim’s com- munity facilities in 2015-16.
“Council plays an important role in managing a wide range of facilities for the benefit of the residents of the Scenic Rim including community halls, cultural venues, swimming pools, public buildings and memorials,” Mayor John Brent said.
“Ongoing repairs and upgrades are required to ensure these facilities are maintained to an appropriate standard.”
A range of improvement projects are planned for 2015-16 including refurbishments to the Boonah Cultural Centre where $48,000 has been budgeted to replacing carpeting in the foyer and repaint the premises. A further $10,000 will be spent to replace the lighting desk and vision mixer for public events and performances.
“The facilities of the Boonah Cultural Centre have serviced the local community for more than 11 years and the venue is due for refurbishment,” Cr Brent said.
At The Centre Beaudesert, $15,000 has been budgeted to install blinds on meeting room windows to prevent sun damage to art works, while in Kalbar $15,000 will be directed to pathway improvements at the Civic Centre.
Regional swimming pools will benefit from a splash of cash, with $46,000 for improvements on Tamborine Mountain where a new treatment system and pool cleaner will be installed in addition to upgrades to the change rooms. At Beaudesert, $20,000 has been allocated for the replacement of the present starting blocks.
$24,000 has been budgeted for the repainting of the Tamborine Memorial Hall, while on Tamborine Mountain the public toilet in Dapsang Rd Park will be upgraded at a cost of $35,000 and the fencing at Rotary Lookout replaced for $16,000.
14 BEAUTIFYING OUR PARKS AND GARDENS
Council will invest more than $2.5 million to maintaining and improving the region’s parks, gardens and streetscapes during 2015-16.
Mayor John Brent said in Boonah, $16,000 has been allocated for beautification works in High St which will involve improvements to the ornamental gardens.
“New street bins with separate receptacles for mixed waste and recyclables will also be installed in High St, funded with $30,000 from Council’s waste program,” Cr Brent said.
“Both projects will complement the footpath improvements which will soon be undertaken on the western side of High St between the Cultural Centre and Park St.”
Council will also roll out improvements to the Engelsberg Park Memorial in Kalbar, with $16,000 budgeted for the installation of new sandstone garden edging at the site.
In Beaudesert, $65,000 has been allocated for the continuation of beautification projects in the town centre while $28,000 has been budgeted for car park sealing and line marking will be done in Lions Bicentennial Park.
“The Bicentennial Park project follows on from the car park development project undertaken in Jubilee Park in 2014-15 which has improved accessibility to this popular park,” Cr Brent said.
“Stage two of the Beaudesert beautification project will build on the work already completed in Central Place, William St, Davidson Park and Jubilee Park over the past year.
“It will give people a taste of how we will further revitalise the town centre once the Beaudesert Town Centre Bypass in complete in 2017.”
As part of its parks and gardens program, Council will continue to support the long-term development of the Tamborine Mountain Botanic Gardens through a $31,000 funding contribution.
Middle Park at Tamborine will also benefit from the replacement of bollard fencing and waste bins at a cost of $11,000.
15 Budget Highlights
PROJECTS PUT TOWNS ON RIGHT PATH
Communities in Boonah, Harrisville and Canungra will benefit from upgrades to local footpaths in 2015-16, with Council to spend more than $250,000 on improvements for pedestrians.
Mayor John Brent said in Boonah $116,000 has been allocated to replace the footpath in Railway St between High St and Yeates Ave.
“These works will complement the upgrades Council is currently delivering in High St as part of our Vibrant and Active Towns and Villages initiative,” he said.
At Harrisville, $84,000 will be spent on improvements in Hall St outside the local state school, while in Canungra $54,000 has been allocated for footpath replacement in Christie St.
“These projects will certainly help to improve amenity and accessibility in those areas,” he said.
16 COMMUNITY GRANTS BUILD SOCIAL FABRIC
$225,000 will be invested to support grassroots community and sporting organisations across the Scenic Rim in the forthcoming financial year.
Of the total, $175,000 will be divided on a quarterly basis through the Community Grants Program, and $50,000 through the annual Sport and Recreation Grants Program.
Mayor John Brent said these funds are vital for many community organisations and provides a significant boost for locally based projects and activities that celebrate who we are in the Scenic Rim.
“In the 2014-15 financial year, the combined Community and Sport and Recreation Grants Programs have supported 199 local organisations with access to training, improvements to infrastructure and facilities, purchasing of new equipment, and the hosting of events and shows,” Cr Brent said.
“Grassroot and community organisations are the backbone of the Scenic Rim community, and it is with great pleasure that Council can continue to provide financial support to strengthen the social connections in our local community.”
17 Budget Highlights
SUPPORTING OUR EMERGENCY SERVICES
Council will support the important operations of the Scenic Rim’s State Emergency Service (SES) units in 2015-16, with $107,000 budgeted to assist SES operations.
“The SES performs a vital role in our community, particularly during times of severe weather and disaster events, but also in a search and rescue activities across the region,” Mayor John Brent said.
“Volunteers give generously of their time to undertake this work and as a Council we are committed to supporting them by providing financial assistance for their operations.”
Meanwhile, the region’s rural fire brigades with receive $210,000 in funding through the levying of special charges.
“Rural fire brigade special charges levied on rates notices are remitted in full to the fire service to support the operations of local volunteers,” Cr Brent said.
18 $20,000 TO MAINTAIN HEALTHY AND ACTIVE LIFESTYLES
After another successful year, Council has allocated $20,000 for the 2016 Be Healthy & Active Program, to build on creating a healthier community.
Be Healthy & Active is a Council-led program of health and fitness activities provided by local sport and recreation clubs, fitness professionals, nutrition practitioners and community groups, all aimed at fostering a more informed and healthier community.
Mayor John Brent said the benefits of the program extend beyond the obvious physical health improvements.
“Many of the participants enjoy the social connections and friendships that develop along the way and they feel happier about their overall health, which is an important part of this community based program,” Mayor John Brent said.
The scope has broadened since its launch in 2014, with the majority of classes available at nominal or no cost to encourage equitable access to the programs on offer.
“Be Healthy & Active aims to assist Scenic Rim residents in overcoming barriers of accessing local, affordable and healthy lifestyle programs suitable for all ages and abilities and Council is proud to be able to continue to support such a great program.”
The Be Healthy & Active Program was a key outcome of Council’s 10-year Social Plan and Sport and Recreation Plan.
In the coming months, Council will again be seeking input from interested community groups and service providers to help shape the 2016 program.
19 Budget Highlights
PLANNING SCHEME NEARING COMPLETION
Council is investing $150,000 in the forthcoming financial year towards finalising the new Scenic Rim Planning Scheme, scheduled for completion in 2016.
The new planning scheme will consolidate the current Beaudesert, Boonah and Ipswich City planning schemes into a singular document, providing consistency to planning and development requirements across the Scenic Rim.
Mayor John Brent said the impending process involves undertaking public consultation on the draft Planning Scheme, following State Government approval.
“Throughout the 24-month process to date, Council has engaged with residents, community associations, local interest groups, businesses and government agencies to develop the Strategic Directions Paper as a guide for the formation of the new Scenic Rim Planning Scheme,” Cr Brent said.
“2015/16 will once again focus on progressing the draft planning scheme through the State government approval process and preparing to engage with Scenic Rim residents on a draft Scenic Rim Planning Scheme.”
The new planning scheme will also reflect the vision and desired outcomes captured in the Scenic Rim Community Plan 2011-2026.
“While the main aim of the planning scheme seeks to unify present planning policies, Council will ensure the personalities of our unique and diverse townships remain preserved.
20 COUNCIL LIBRARIES CONTINUING IMPROVEMENTS
Scenic Rim libraries will benefit from an investment of almost $250,000 in books and resources and the replacement of shelving units, in the 2015-16 financial year, including an approximate $164,000 recurring grant from the State Library of Queensland.
Mayor John Brent said the replacement of aged shelves will also be funded to ensure the safe storage of library materials and to increase accessibility for library patrons.
“Council will be investing $244,000 into purchasing and replacing books, magazines, DVDs and CDs, as well as digital resources including e-books, adult education resources, e-audio and early learning games,” Cr Brent said.
“This is a significant investment as Council strives to create collections which reflect community interests and remain current by ensuring that at least half the collection is less than 5 years old.”
Council’s catalogue of resources currently boasts twelve different types of digital material free for use by library card holders and includes an English literacy learning platform, online magazines, language learning facilities and a free driver education program.
“As technologies advance, more and more people are accessing their news, magazines, books and movies online, without having to leave the house.”
“Through Council library’s online resources, card holders can access these materials for free, offering choice, convenience and savings.”
A further $27,000 will assist in the replacement of aged shelves with modern shelving units, to enhance the usable space of library floors and increase accessibility to the materials for all library patrons.
21 Budget Highlights
SUPPORT FOR REGIONAL EVENTS
New and existing events will be supported with $20,000 in the 2015-16 financial year, to boost tourism and showcase the Scenic Rim.
Mayor John Brent said the funds are available through Council’s Regional Events Strategy and will assist events such as Eat Local Week to reach their full potential, and provide a platform to showcase the region to visitors.
“Supporting regional events, small and large, is critical to showcase our region and culture and to increase visitor numbers,” Cr Brent said.
“Eat Local Week, the region’s biggest celebration of food and fare, last year attracted more than 15,000 locals, visitors, producers and industry personnel to our region, increasing development capacity and exposure to our wonderful region.”
Tourism contributes more than $150 million to the region’s economy, with regional events providing a platform to showcase the Scenic Rim.
“Council remains committed to assisting local and regional events and to helping others in getting started in projects that will encourage economic and social returns.”
Sponsorship of up to $5000 is available to event organisers.
22 ENVIRONMENTAL PROGRAMS TO NURTURE NATURE
$162,000 will be invested in the conservation and preservation of the Scenic Rim environment through Council’s various environmental programs in the 2015-16 budget.
Mayor John Brent said the Environmental Grants, Million Trees and Habitat Protection Programs partner with the community to collectively protect and enhance the region’s natural landscape.
“Council is proud to assist local groups and individuals with $77,000 of funds dedicated to preserving the local environment through the Environmental Grants Program. Eligible landowners, community groups as well as schools can apply for funding, and are inspired to work in partnership with Council to enhance the natural environment in their own unique way,” he said.
The 2015/16 Environmental Grants Program will be announced shortly, please check the Council website www.scenicrim.qld.gov.au for more details.
$50,000 has been allocated to continue Council’s ambitious plan to see one million native trees planted across the region by 2030, through the Million Trees Program.
“Within five years it is our intention to have planted 10 trees for every man, woman and child living in the Scenic Rim. That will equate to more than 380,000 trees, a third of the way to our 2030 goal of one million,” Cr Brent said.
The community can get involved through a number of programs that align with the Million Trees Program including the Residential Trees initiative, Community Trees initiative, Habitat Trees initiative and Rural Trees initiative.
Council’s Habitat Protection Program, which seeks to develop partnerships with landowners to enhance habitat values on private property, has also been allocated $38,000 in the Budget.
“Council recognises the significant contribution by landowners to the conservation and enhancement of the region’s natural resources and is proud to support them with funds through the Habitat Protection Program,” Cr Brent said.
The Habitat Protection Program now has three options for Land managers to choose from; Land for Wildlife, Conservation Agreement and Nature Refuge. Councils’ environmental initiatives are integral to delivering on the desired outcomes of the Scenic Rim Community Plan 2011-2026, a shared vision with the community for the future.
23 Rates & Charges
Revenue Statement Council’s Revenue Statement for the 2015-16 financial year is contained in this document from page 115. The Revenue Statement aims to: • Assist the community to better understand the relationship between Council’s strategic plans for the community, its budget and its rates and charges structure; • Reflect Council’s consideration of consistency and comparability in the imposition of rates on various sectors ofthe community, including residential, business and rural ratepayers; and • Provide clear information around rate setting thereby gaining greater community understanding of the issues.
The Revenue Statement is developed in accordance with Council’s Revenue Policy, which sets out the principles used by Council in setting rates and charges. The total revenue of $44.3 million to be generated in 2015-16 through net rates and charges is summarised below.
Revenue Strategy
Council’s revenue strategy for the 2015-16 financial year is based on the following guidelines relating to rates and charges. Council’s rates and charges include:
• Differential general rates; there are a number of differential general rates and minimum general rates, which are set based on land usage and other relevant factors. • Separate rates and charges; there is a separate charge for Community Infrastructure. • Special rates and charges; there is a special charge for Rural Fire Levy. • Utility charges; there are two utility charges for Waste Disposal and Waste Management. General Rates For the 2015-16 financial year Council will increase the minimum general rate by 2.5% for residential properties.
In accordance with Section 116 of the Local Government Regulation 2012 Council has introduced a 15% rate cap in the 2015-16 financial year on residential properties in order to limit the maximum general rate increase that could result from changes in land valuations and other factors.
24
The following table provides a comparison of the general rates proposed for 2015-16 based on the minimum general rate for a residential principal place of residence ratepayer in the Scenic Rim region compared to the previous year:
2014-15 2015-16 $ increase % increase General Rates per year $1,106 $1,134 $28 2.5% General Rates per week $21.27 $21.81 $0.54 2.5%
Charges In the 2015-16 financial year Council will levy the following charges: • Community Infrastructure Charge • Rural Fire Levy • Waste Disposal Charge • Waste Collection Charge
In addition to the above, Council will levy charges on behalf of the State Government for the Emergency Management Levy.
The Emergency Management Levy and the Rural Fire Levy are both remitted to the relevant agencies to provide the required funding to carry out these services.
The Community Infrastructure Charge is used to fund either all or part of the costs associated with road and bridge infrastructure maintenance.
The Waste Disposal Charge is used to fund recurrent and capital expenditure and administration costs associated with the ongoing operation, maintenance and upgrading of Council’s waste management facilities.
This charge will not apply to properties that are already receiving and paying for a waste collection service.
The Waste Collection Charge is used to fund the cost of domestic and commercial waste collection and associated waste disposal costs. Discount Council will continue to offer a discount of 5% on general rates only in 2015-16. Land Valuations In accordance with the Land Valuation Act 2010 Council receives new land valuations annually and these valuations apply for rating purposes.
Council levies rates based on the value of the land as assessed by the Department of Natural Resources and Mines. The value of the land is either the site value (non-rural land) or the unimproved value (rural land) determined under the Land Valuation Act 2010.
The mix of rateable properties that make up the Scenic Rim region include: • Residential principal place of residence 59% • Residential non-principal place of residence 25% • Rural 12% • Commercial and industrial 4%
25 Rates & Charges
When determining the budget, Council sets rates to generate the same amount of dollars as the previous year plus the general rate increase.
Council does not gain additional revenue because of a revaluation. New land valuations do not impact on the total amount of dollars Council must generate through levying rates but because rates are based on land values, individual properties may see some change in the rates levied under or over the general rate increase. Rating Environment Council’s rates and charges are set each year with regard to a number of factors including the cost of providing services, capital works and service level expectations by the community.
Council also considers statistical indicators such as the Consumer Price Index and the Queensland Local Government Index, which is prepared by the Local Government Association of Queensland (LGAQ).
Council consciously aims to keep the increase in rates to a minimum in order to lessen any impact on ratepayers, but at the same time generate enough income to provide adequate levels of service and achieve community objectives.
Approximately 30% of rateable properties are on the minimum rate.
Scenic Rim’s relatively low population density means that it has a lower rate base than city-based regions from which to raise revenues to maintain infrastructure and provide services.
26 Operating Budget
This section provides an analysis of the planned recurrent or operating expenditure budget for the 2015-16 financial year and the sources of funding for the budget. Recurrent Revenue Recurrent revenue of $61 million budgeted for in 2015-16 is summarised below by major category.
Recurrent Expenditure Recurrent expenditure of $57.8 million budgeted for in 2015-16 is summarised below by major category.
Operating Position The operating surplus or deficit for the year is a measure of Council’s financial performance. This figure is determined by deducting total recurrent expenditure from total recurrent revenue.
The State Government’s key performance indicators require councils to maintain an operating surplus ratio of between 0% and 10% to ensure financial sustainability.
The Queensland Audit Office’s report to parliament on the results of local government audits for the 2013-14 financial year rated Scenic Rim Regional Council as having a lower risk of financial sustainability concerns. A key factor in this assessment is that Council budgets for an operating surplus and not an operating deficit.
While an operating surplus is generated, Council does not retain these funds. Any surplus funding that is generated over and above the level of recurrent expenditure is used to fund capital expenditure and repay loans.
27 Capital Budget
This section provides an analysis of the planned capital expenditure budget for the 2015-16 financial year and the sources of funding for the budget. Capital Expenditure Capital expenditure of $22.3 million budgeted for in 2015-16 is summarised below by major category. Scenic Rim Regional Council manages its business based on a comprehensive financial strategy and in addition, calls for a total asset management approach to be undertaken in relation to the management of Council’s assets.
Council is committed to developing its asset management strategies to ensure that decisions regarding its long lived assets are made on the best information available.
Council is the custodian of community assets and infrastructure, including land, which have a gross value of $803 million. A strategic approach to asset management together with strong financial governance are essential to ensure:
• That we deliver high levels of community satisfaction; • Revenue generation is based on required service delivery outcomes; • Responsible stewardship; • That we do not leave an inappropriate liability for future generations; • Decision makers and the community understand the whole of life costs associated with infrastructure and service delivery; and • Council is appropriately positioned to negotiate with the Queensland and Commonwealth Government on funding opportunities.
Council’s asset management strategies place significant emphasis on costs associated with replacing and renewing existing infrastructure and, where required, contains plans for new capital expenditure to meet the needs of a growing population.
In accordance with Council’s strategies, the 2015-16 capital works program consists largely of renewal capital works where Council intends to spend $16 million on renewal works and $5 million on new works.
28 Capital Works Program 2015-16
Project Description Asset Group Amount Tramway Bridge, Christmas Creek Bridge Replacements Bridges $1,300,000 Camp Creek Bridge, Running Creek Bridge Replacements Bridges $1,300,000 Ferrar Bridge, Tamrookum Creek Major Rehabilitation Bridges $150,000 Cahill Bridge, Christmas Creek Major Rehabilitation Bridges $80,000 Storey Bridge, Birnam Major Rehabilitation Bridges $150,000 Drynan Bridge, Mount Gipps Major Rehabilitation Bridges $100,000 Dwyers Bridge, Peak Crossing Major Rehabilitation Bridges $120,000 Double Crossing Bridge, Canungra Major Rehabilitation Bridges $150,000 Nugent Bridge, Kooralbyn Replace with Pipe Culvert Bridges $128,000 Cashell Bridge, Palen Creek Replace with Pipe Culvert Bridges $128,000 Minor Rehabilitation Minor Rehabilitation Bridges $450,000 TOTAL BRIDGE PROGRAM $4,056,000 Reseals Road Reseal Program Roads $2,859,000 Road Furniture Road Furniture Program Roads $121,000 Re-sheeting Road Re-sheeting Program Roads $1,594,000 Re-sheeting Shoulders Road Shoulders Re-sheeting Program Roads $495,000 Minor Works Minor Works (less than $100,000) Roads $275,000 Design Road Design Works Roads $331,000 Floodways Floodway Reconstruction Roads $213,000 Veresdale Scrub Rd, Gleneagle Road Upgrade Fields Rd to Worif Drive Roads $1,000,000 Sandy Creek Rd, Bromelton Road Upgrades Roads $750,000 Kilmoylar Rd, Kagaru Road Upgrades Roads $742,000 Roland Court, Peak Crossing Road Upgrades Roads $800,000 Christmas Creek Rd, Christmas Creek Lamington Bridge Approaches Roads $800,000 Christmas Creek Rd, Christmas Creek Foxley Bridge Approaches Roads $800,000 Anna Street/Eaglesfield St, Beaudesert Blackspot Program Roads $223,000 Birnam Range Rd, Beaudesert Blackspot Program Roads $205,000 Kooralbyn Rd, Kooralbyn Blackspot Program Roads $53,000 TOTAL ROADS PROGRAM $11,261,000 Minor Works Minor Works (less than $100,000) Drainage $140,000 Sumba Court, Tamborine Mountain Drainage Upgrades Drainage $20,000 Huyber Lane, Tamborine Mountain Drainage Upgrades Drainage $40,000 Katmai Court, Tamborine Mountain Drainage Upgrades Drainage $80,000 Ocean View Parade, Tamborine Mountain Drainage Upgrades Drainage $130,000 Adam Drive, Aratula Drainage Upgrades Drainage $50,000 Hartley Rd, Tamborine Mountain Drainage Upgrades Drainage $40,000 TOTAL DRAINAGE PROGRAM $500,000 Christie St, Canungra Footpath Replacement Footpaths $54,000 Hall St, Harrisville Footpath Replacement Footpaths $116,000 Railway St, Boonah Footpath Replacement Footpaths $84,000 TOTAL FOOTPATH PROGRAM $254,000
29 Capital Works Program 2015-16
Project Description Asset Group Amount Administration Centres Building Upgrades Buildings $54,000 Libraries Building Upgrades Buildings $63,000 Cultural Centres Building Upgrades Buildings $18,000 Community Centres Building Upgrades Buildings $209,000 Council Depots Minor Upgrades Depots $40,000 Park furniture and equipment replacements and Public Parks upgrades Park Buildings & Furniture $146,000 Public Toilets Public toilet upgrades and improvements Public Conveniences $35,000 Swimming Pools Pool upgrades and equipment replacement Swimming Pools $82,000 Other Facilities Building Upgrades Buildings $76,000 Rotary Lookout, Tamborine Mountain Fence Replacement Park Buildings & Furniture $16,000 Beaudesert Stage 2 Town Beautification Park Buildings & Furniture $65,000 Installation of hardwood rails around garden High St, Boonah beds Park Buildings & Furniture $16,000 TOTAL FACILITIES, PARKS & GARDENS PROGRAM $820,000 All Locations Security Cameras Waste Management $92,000 Boonah New Street Bins Waste Management $30,000 Central Landfill Facility Upgrades Waste Management $117,000 Peak Crossing Transfer Station Construct Bin Bays Waste Management $50,000 Boonah Transfer Station Construct Retaining Wall Waste Management $12,000 Truck Turning Areas Construct new garbage truck turning areas Waste Management $20,000 TOTAL WASTE MANAGEMENT PROGRAM $321,000 Vehicle & Plant Replacement Replacement of fleet and equipment Fleet $3,233,500 TOTAL FLEET MANAGEMENT PROGRAM $3,233,500 Strategic Projects Vibrant & Active Towns & Villages Other $800,000 TOTAL STRATEGIC PROJECTS $800,000 Books & Related Materials Library resources and equipment Libraries $244,000 Beaudesert Library Shelving Libraries $27,000 Cultural Centres Facility Upgrades Buildings $55,000 TOTAL OTHER PROJECTS $326,000 Loan repayments Finance $697,000 TOTAL LOAN REPAYMENTS $697,000 Total Capital Works Program 2015-16 $22,268,500
30 Budgeted Financial Statements
Budgeted financial statements for 2015-16 on the following pages are: Budgeted Statement of Comprehensive Income This statement outlines: • All sources of Council’s income (revenue) • All recurrent expenditure. These expenses relate to operations and do not include capital expenditure although depreciation of assets is included.
The Net Result for the year is a measure of Council’s financial performance. This figure is determined by deducting total recurrent expenditure from total income. Budgeted Statement of Financial Position This statement outlines what Council owns (assets) and what it owes (liabilities) at a point in time.
Council’s net worth is determined by deducting total liabilities from total assets – the larger the net equity, the stronger the financial position. Budgeted Statement of Cash Flows This statement summarises the actual flows of cash for a period and explains the change in the cash balance held from the start of the period through to the end of the reporting period. This shows where Council received its cash from and then what it spent it on. Budgeted Statement of Changes in Equity This statement summarises the change in Council’s real worth throughout the financial year. Council’s net worth can change as a result of: • The net result as recorded in the Statement of Comprehensive Income; or • An increase or decrease in the net value of non-current assets resulting from a revaluation of those assets.
31 Budgeted Financial Statements
Scenic Rim Regional Council Budgeted Financial Statements Revised STATEMENT OF COMPREHENSIVE INCOME Budget Budget Forecast Forecast 2014/15 2015/16 2016/17 2017/18 $'000 $'000 $'000 $'000 Income Revenue Recurrent Revenue Rates and Utility Charges 41,594 44,260 46,405 48,653 Fees & Charges 4,197 4,160 4,378 4,608 Interest Received 1,848 1,818 1,791 1,767 Sales of Contract and Recoverable Works 3,968 3,739 3,857 3,980 Share of Profit from Associate 1,263 1,701 1,707 1,810 Other Revenue 1,995 2,023 2,084 2,193 Operating Grants, Subsidies, Contributions and Donations 3,376 3,308 3,308 3,308 Total Recurrent Revenue 58,241 61,008 63,530 66,319
Capital Revenue Capital Grants, Subsidies, Contributions and Donations 31,790 2,814 1,240 1,265 Contributions from Developers 1,592 1,640 2,164 2,208 Total Capital Revenue 33,382 4,454 3,404 3,473
Total Revenue 91,623 65,462 66,934 69,792
Total Income 91,623 65,462 66,934 69,792
Expenses Recurrent Expenses Employee Expenses 25,552 25,990 26,624 27,333 Materials & Services 17,287 18,406 18,677 19,175 Finance Costs 835 975 1,079 1,196 Depreciation & Amortisation 11,225 12,417 13,162 13,952 Total Recurrent Expenses 54,899 57,788 59,543 61,656
Total Expenses 54,899 57,788 59,543 61,656
Net Result 36,724 7,674 7,391 8,136
Operating Revenue (Recurrent Revenue) 58,241 61,008 63,530 66,319 Operating Expenses (Recurrent Expenses) 54,899 57,788 59,543 61,656 Operating Result (Recurrent Result) 3,342 3,220 3,987 4,663
The forecast total increase in net rates and utility charges revenue (including growth allowance) between 2014/15 and 2015/16 is 6.4%.
32 Scenic Rim Regional Council Budgeted Financial Statements Revised STATEMENT OF FINANCIAL POSITION Budget Budget Forecast Forecast 2014/15 2015/16 2016/17 2017/18 $'000 $'000 $'000 $'000 ASSETS Current Assets Cash & Cash Equivalents 14,892 16,041 15,760 15,549 Trade & Other Receivables 5,563 5,563 5,563 5,563 Inventories 900 900 900 900 Other Assets 700 700 700 700 Total Current Assets 22,055 23,204 22,923 22,712
Non-Current Assets Trade & Other Receivables 14,676 14,676 14,676 14,676 Property, Plant & Equipment 746,271 775,763 807,458 837,435 Investment in Associate 31,407 32,386 33,388 34,423 Total Non-Current Assets 792,354 822,825 855,522 886,534 TOTAL ASSETS 814,409 846,029 878,445 909,246
LIABILITIES Current Liabilities Trade & Other Payables 4,435 4,435 4,435 4,435 Borrowings 672 829 977 1,034 Employee Benefits 8,707 8,707 8,707 8,707 Total Current Liabilities 13,814 13,971 14,118 14,176
Non-Current Liabilities Borrowings 17,248 19,394 21,774 20,965 Employee Benefits 725 725 725 725 Provisions 3,332 3,332 3,332 3,332 Total Non-Current Liabilities 21,304 23,451 25,831 25,022 TOTAL LIABILITIES 35,118 37,422 39,950 39,198 Net Assets 779,291 808,607 838,496 870,048
EQUITY Asset Revaluation Surplus 233,242 254,883 277,381 300,797 Accumulated Surplus 546,050 553,724 561,115 569,251 Total Equity 779,291 808,607 838,496 870,048
33 Budgeted Financial Statements
Scenic Rim Regional Council Budgeted Financial Statements Revised STATEMENT OF CASH FLOWS Budget Budget Forecast Forecast 2014/15 2015/16 2016/17 2017/18 $'000 $'000 $'000 $'000 Cash Flows from Operating Activities
Receipts from Customers 55,156 54,181 56,724 59,434 Payments to Suppliers and Employees -44,940 -44,499 -45,407 -46,615 10,216 9,682 11,318 12,818
Receipts: Interest Received 1,848 1,818 1,791 1,767 Operating Grants, Subsidies, Contributions and Donations 3,376 3,308 3,308 3,308 Payments: Interest Expense -735 -872 -974 -1,089
Net Cash Inflow / (Outflow) from Operating Activities 14,704 13,936 15,442 16,805
Cash Flows from Investing Activities Receipts: Proceeds from Sale of Property, Plant & Equipment 1,268 1,305 1,329 789 Dividend Received from Associate 560 722 705 775 Capital Grants, Subsidies, Contributions and Donations 38,168 4,454 3,404 3,473 Payments: Payments for Property, Plant & Equipment -57,539 -21,572 -23,689 -21,301
Net Cash Inflow / (Outflow) from Investing Activities -17,542 -15,091 -18,251 -16,264
Cash Flows from Financing Activities Receipts: Proceeds from Borrowings 4,000 3,000 3,357 225 Payments: Repayment of Borrowings -604 -697 -829 -977
Net Cash Flow inflow / (Outflow) from Financing Activities 3,396 2,303 2,528 -752
Net Increase/(Decrease) in Cash 558 1,149 -281 -211 plus: Cash & Cash Equivalents - beginning of year 14,334 14,892 16,041 15,760
Cash & Cash Equivalents - end of the year 14,892 16,041 15,760 15,549
34 Scenic Rim Regional Council Budgeted Financial Statements Revised STATEMENT OF CHANGES IN EQUITY Budget Budget Forecast Forecast 2014/15 2015/16 2016/17 2017/18 $'000 $'000 $'000 $'000
Accumulated Surplus Opening Balance 509,326 546,050 553,724 561,115 Net Operating Result for the Year 36,724 7,674 7,391 8,136 Closing Balance 546,050 553,724 561,115 569,251
Asset Revaluation Surplus Opening Balance 214,047 233,242 254,883 277,381 Asset Revaluation Adjustments 19,194 21,642 22,497 23,416 Closing Balance 233,242 254,883 277,381 300,797
Total Equity Opening Balance 723,373 779,291 808,607 838,496 Net Operating Result for the Year 36,724 7,674 7,391 8,136 Asset Revaluation Adjustments 19,194 21,642 22,497 23,416 Closing Balance 779,291 808,607 838,496 870,048
35 Budgeted Financial Statements
Scenic Rim Regional Council Budgeted Financial Statements
ESTIMATED ACTIVITY STATEMENT Budget Forecast Forecast 2015/16 2016/17 2017/18 $'000 $'000 $'000 ROADS ACTIVITY Revenue payable to: Scenic Rim Regional Council 3,639 3,730 3,823 Other Parties 0 0 0 Expenditure Direct 3,127 3,190 3,253 Overhead Allocation 408 416 425 Net Result 104 124 145 Community Service Obligations 0 0 0
BUILDING CERTIFYING ACTIVITY Revenue payable to: Scenic Rim Regional Council 437 448 460 Other Parties 0 0 0 Expenditure Direct 336 342 349 Overhead Allocation 124 126 129 Net Result -22 -20 -18 Community Service Obligations 0 0 0
WASTE COLLECTION ACTIVITY Revenue payable to: Scenic Rim Regional Council 4,293 4,400 4,510 Other Parties 0 0 0 Expenditure Direct 3,299 3,365 3,432 Overhead Allocation 550 564 578 Net Result 444 472 501 Community Service Obligations 0 0 0
36 Operational Plan 2015-16
Table of Contents
Introduction...... 1
1.0 Spectacular Scenery & Healthy Environment...... 4 1.1 Projects...... 4 1.2 Programs...... 6
2.0 Sustainable and Prosperous Economy...... 8 2.1 Projects...... 8 2.2 Programs...... 9
3.0 Open and Responsive Government...... 10 3.1 Projects...... 10 3.2 Programs...... 11
4.0 Relaxed Living and Rural Lifestyle...... 13 4.1 Projects...... 13 4.2 Programs...... 14
5.0 Vibrant Towns and Villages...... 15 5.1 Projects...... 15 5.2 Programs...... 16
6.0 Accessible and Serviced Region...... 17 6.1 Projects...... 17 6.2 Programs...... 21
7.0 Healthy, Engaged and Resourceful Communities...... 24 7.1 Projects...... 24 7.2 Programs...... 25
8.0 Organisational Sustainability...... 27 8.1 Projects...... 27 8.2 Programs...... 29 Key Performance Indicators...... 33
Appendix 1: Corporate Plan Strategy Codes...... 39
37 Introduction
Background
This Operational Plan has been prepared to satisfy Council’s obligations under the Local Government Regulation 2012 (LG Regulation). This Operational Plan has been prepared concurrently with the 2015/2016 Annual Budget.
The Operational Plan outlines Council’s projects and programs that are designed to progress the implementation of the 5‐year corporate plan as required by section 175 of the LG Regulation.
A project is a discrete body of work that occurs within the nominated timeframe. Examples include the delivery of a particular piece of infrastructure, a policy or program review or the implementation of new legislative requirements. Initiatives with a budgetary impact are usually also identified within Council’s budget documents; however projects may include activities funded by recurrent budget allocations. Programs, by contrast, represent the ongoing/recurrent operational activities of Council. Key performance indicators are nominated for each program and this provides a process for the measurement of Council’s performance.
Quarterly reports are provided from the Chief Executive Officer to the Council to track the organisation’s progress in delivering the nominated projects and programs.
Planning Framework
The Operational Plan is a key component of Council's strategic planning framework, and should be considered in conjunction with other planning documents, including the long‐term financial plan, annual budget and Corporate and Community Plans.
The purpose of the 2013‐2018 Scenic Rim Regional Council Corporate Plan is to clearly outline the strategic approach that Council will take over the next five years in furthering the goals and objectives of the Scenic Rim Community Plan 2011‐2026. The annual Operational Plan and Budget detail the actions Council will take each year in furthering the delivery of the strategic direction of the Corporate Plan
Council's strategic planning framework is represented in the diagram provided below.
Operational Plan 2015/2016 | Introduction 1
The Corporate Plan is organised around the seven Community Plan Themes, being: Spectacular Scenery and Healthy Environment; Sustainable and Prosperous Economy; Open and Responsive Government; Relaxed Living and Rural Lifestyle; Vibrant Towns and Villages; Accessible and Serviced Region; and Healthy, Engaged and Resourceful Communities.
The Corporate Plan also identifies an eighth theme of Organisational Sustainability. This recognises the non‐community facing aspects of Council's activities and operations.
Operational Plan 2015/2016 | Introduction 2 For each Corporate Plan theme, Council has nominated a Statement of Intent, identified Strategies to respond to and progress the policy objectives articulated by the Statement of Intent and established Measures to track progress in delivering relevant strategic outcomes.
Each Operational Plan Project and Program nominates relevant linkages and relationships to the Corporate Plan Strategies by the use of a unique code for each strategy. For ease of reference, a schedule of Corporate Plan Codes is provided in Appendix 1.
Risk Management
Council is committed to implementing a systematic risk management methodology that identifies and addresses areas of potential risk within Council in a manner that is consistent with Australian Standards. Effective risk management is governed by an organisational Risk Management Framework that establishes the relationship between Council’s various risk management components and processes.
A key element of the Risk Management Framework is Council’s Organisational Risk Register. This register details how significant risks to the organisation are described, assessed and managed. It is maintained in accordance with Council’s Risk Management Policy and the Enterprise risk Management Guidelines. Linkages to the Organisational Risk register for each project and program are detailed by the Operational Plan. This Operational Plan should be read in conjunction with the Organisational Risk Register.
Operational Plan 2015/2016 | Introduction 3 1.0 Spectacular Scenery & Healthy Environment STATEMENT OF INTENT Council recognises the region’s unique natural environment and will proactively and sustainably work to preserve and enhance it in partnership with our community.
CORPORATE PLAN STRATEGIES SHE1 Ensure environmental considerations and sustainability principles are integrated into key decision‐making processes, policies and procedures including future land use planning, and infrastructure and organisational service delivery. SHE2 Conserve, protect and enhance the region’s unique biodiversity, scenic vistas, natural resources and ecological processes. This will include taking steps to minimise the impact of pest species, improving degraded land and waterways, and protecting and enhancing environmental corridors. SHE3 Engage and partner with key stakeholders in all sectors to progress prosperity and sustainability through coordinated decision making and regional ecosystem investment that duly recognises the significance of our environment and ecosystem services. SHE4 Recognise and support the right to farm by our rural landholders and provide appropriate tools, opportunities, incentives and support to strengthen environmental management practices. SHE5 Provide innovative waste reduction, recycling and management practices to minimise adverse effects of waste on the environment and impacts on the community. SHE6 Provide strong advocacy to ensure our region is protected from industries such as coal mines and coal seam gas development. SHE7 Recognise and manage the impacts of climate change and peak oil
1.1 Projects Project Description Risk Link Deliverable(s) Department Strategies Completion Date Flying Fox Management CF5 1. Develop Urban Flying Fox Roost Management Plans for Health, SHE1 1. 30/06/2016 CE3 current roosts on Council managed land for consideration by Building and CE3 CE6 Council. Environment CE6 CE8 CE8 SHE2 SHE3 SHE4 SHE7 Reserve Network Review Management CF5 1. Review and report to the Chief Executive Officer the Reserve Health, SHE1 1. 30/06/2016 CE3 network to determine the conservation status of the Building and SHE3 CE6 vegetation communities. Environment CE8
Operational Plan 2015/2016 | 1.0 Spectacular Scenery & Healthy Environment 4 Project Description Risk Link Deliverable(s) Department Strategies Completion Date Reserve Management and CF5 1. Review and update Rivers Management and Rehabilitation Health, SHE1 1. 30/06/2016 Rehabilitation Plan CE3 Program 2010 ‐ 2015. Building and SHE2 CE6 Environment SHE3 CE8 Waste Strategy CE1 1. Waste Strategy Implementation Plan delivered. Property and SHE1 1. 30/06/2016 CE2 2. Waste Strategy Implementation Plan outcomes considered by Operations SHE2 2. 30/06/2016 CE3 the Chief Executive Officer. SHE5 CE4 SHE7 WHS1 ASR1 Waste Disposal Planning CF2 1. 10 year Waste Capital Works program review. Property and HER5 1. 31/12/2015 CF5 2. 10 year Waste Capital Works program review considered by Operations SHE5 2. 31/01/2016 IA2 Council. SHE1 3. 30/06/2016 IA5 3. Preplanning of 2016/2017 Waste Capital Works projects SHE2 CE5 undertaken. SHE7 ASR1
Operational Plan 2015/2016 | 1.0 Spectacular Scenery & Healthy Environment 5 1.2 Programs Program Description Risk Link Deliverable(s) Department Strategies Roadside Weed Management CF5 1. Main Roads Contract. Health, Building SHE1 CF6 2. Local Government Controlled Roads. and SHE2 CE3 Environment SHE3 CE8 SHE4 SHE7 Habitat Protection Program CF5 1. Land for Wildlife. Health, Building SHE1 CE3 2. Voluntary Conservation Agreements. and SHE2 CE6 3. Nature Refuge and Conservation Covenant Program. Environment SHE3 CE8 SHE4 WHS1 SHE7 Waterways CF5 1. Develop strong partnerships with key government and nongovernmental Health, Building SHE1 CE3 organisation (e.g. Healthy Waterways). and SHE2 CE6 2. Delivery Healthy Country Program. Environment SHE3 CE8 SHE4 WHS1 Reserve Management CE6 1. Deliver nominated actions from Reserve Management Plans. Health, Building SHE1 WHS1 2. Undertake bushfire mitigation in accordance with Management Plans. and SHE2 3. Pest animal and plant control. Environment SHE3 SHE4 SHE7 ASR1 HER5 Community and Environmental CF5 1. Deliver community education and awareness program. Health, Building SHE1 Management CE3 2. Deliver Community Environmental Grants program in accordance with and SHE2 CE6 Community Grants Policy. Environment SHE3 CE8 SHE4 WHS1 SHE7 Energy Efficiency CF5 1. Review energy efficiency audit of required actions. Health, Building SHE1 CE3 2. Deliver nominated energy efficiency upgrades. and SHE2 CE6 Environment SHE3 SHE4 SHE7 ORG3 Pest Management Plan Regulatory CF5 1. Deliver private property inspection program in accordance with approved Health, Building SHE1 Activities CE3 inspection program. and SHE2 CE6 2. Deliver wild dog baiting program. Environment SHE3 CE8 SHE4 WHS1 ORG3 ORG4
Operational Plan 2015/2016 | 1.0 Spectacular Scenery & Healthy Environment 6 Program Description Risk Link Deliverable(s) Department Strategies Regulatory Services under the CE2 1. Provide sediment and erosion regulatory services. Health, Building SHE1 Environmental Protection Act 1994 WHS2 2. Provide environmental nuisance regulatory services. and SHE2 Environment SHE3 SHE4 ORG3 ORG4 Million Trees ‐ Scenic Rim CE3 1. Rural Trees program delivered. Health, Building SHE2 CE6 2. External investment opportunities investigated. and SHE3 WHS1 3. Community Trees program delivered. Environment SHE4 4. Parks Tree Program delivered. SHE7 5. Habitat Tree Program delivered. RRL3 VTV2 Waste Disposal Capital Works Program CF2 1. Waste Capital Works program delivered. Property and HER5 CF5 Operations SHE5 IA2 SHE1 IA5 SHE2 SHE7 ASR1
Operational Plan 2015/2016 | 1.0 Spectacular Scenery & Healthy Environment 7 2.0 Sustainable and Prosperous Economy STATEMENT OF INTENT Council will contribute to the enhancement of the regional identity, support and foster sustainable economic growth for existing and new business to create local employment opportunities within our region whilst recognising the values and wellbeing of our community and natural environment.
CORPORATE PLAN STRATEGIES SPE1 Encourage local investment and sustainable business practices, and provide appropriate tools, opportunities, incentives and support to our business sector to build capacity, expertise, broaden the region’s economic base and enhance innovation. SPE2 Invest in appropriate infrastructure to stimulate the ongoing development of our region. SPE3 Ensure we operate in a way that recognises and supports business needs and aspirations while protecting broader community and environmental interests. SPE4 Advocate and support the planning and delivery of major projects that align with the community plan’s regional vision, in collaboration with government agencies and other key stakeholders.
2.1 Projects Project Description Risk Link Deliverable(s) Department Strategies Completion Date Develop a New Planning Scheme CF6 1. Draft Planning Scheme endorsed by Council for State Planning SPE3 1. 31/12/2015 CF11 Interest Review. RRL3 2. 30/06/2016 IA2 2. Draft Planning Scheme endorsed by Council for RRL4 3. 31/03/2016 CE2 community consultation. SHE1 4. 30/06/2016 CE3 3. Draft Local Government Infrastructure Plan endorsed by SPE1 CE4 Council for State Interest Review. SPE4 4. Draft Local Government Infrastructure Plan endorsed by ORG2 Council for community consultation. ORG5 VTV4 OS2
Operational Plan 2015/2016 | 2.0 Sustainable and Prosperous Economy 8 2.2 Programs Program Description Risk Link Deliverable(s) Department Strategies Economic Development CF11 1. Implement Economic Development Framework 2015 ‐ 2016. Community and SPE3 2. Implement Tourism Strategy priority recommendations. Culture ORG1 OS1 Visitor Information Centre CF5 1. Coordinate the operation of accredited Visitor Information Centres at Community and SPE2 IA2 Beaudesert, Boonah, Canungra, Rathdowney and Tamborine Mountain. Culture RRL2 IA3 VTV2 WHS1 OS2 Alliance and Contract Works CF1 1. Routine Maintenance Performance Contract. Works SPE2 CF10 2. Works for other Councils. SPE3 CF11 3. Private works. ORG5 CF15 4. Other Department of Transport and Main Roads Contracts. OS2 CE1 PO1 WHS1
Operational Plan 2015/2016 | 2.0 Sustainable and Prosperous Economy 9 3.0 Open and Responsive Government STATEMENT OF INTENT Council will provide leadership that supports the diverse needs of our community. We value this diversity and will actively engage to deliver a range of affordable services in an efficient and fair manner. We will acknowledge the aspirations of our community when making decisions in an ethical and transparent way.
CORPORATE PLAN STRATEGI ES ORG1 Continue to develop initiatives and processes to communicate and engage with our diverse community. ORG2 Facilitate community participation in decision making. ORG3 Create a corporate environment underpinned by ethical behaviour that fosters a proactive customer service culture, processes and procedures that progress open and accountable governance and apply a risk management approach. ORG4 Provide streamlined and practical regulatory services that deliver on the shared vision with the community. ORG5 Provide strong advocacy on local issues of significance and pursue an integrated whole‐of government approach to planning, coordination and improvements in the provision of essential services and infrastructure.
3.1 Projects Project Description Risk Link Deliverable(s) Department Strategies Completion Date Corporate Photography CF11 1. Portraiture of 2016‐20 Councillors, Council Executive and Communications ORG1 1. 30/06/2016 Management. and Engagement ORG5 Review Branding Guidelines CF11 1. Consult internally regarding present branding practices. Communications ORG1 1. 30/09/2015 2. Review branding guidelines based on internal feedback. and Engagement ORG5 2. 31/12/2015 3. Produce draft branding document. 3. 31/03/2016 4. Draft documented presented to Chief Executive Officer for 4. 30/06/2016 consideration. Local Government Election CF2 1. Election period protocol complied with. Governance ORG2 1. 31/03/2016 CF6 2. Election conducted and outcomes determined. ORG4 2. 30/04/2016 PO2 3. Post‐election meeting held. 3. 30/04/2016 PO3 4. Councillor induction program undertaken. 4. 30/06/2016
Operational Plan 2015/2016 | 3.0 Open and Responsive Government 10 3.2 Programs Program Description Risk Link Deliverable(s) Department Strategies Community Connectivity CF5 1. Provide community engagement advisory function and ensure activities are Communications ORG1 consistent with Community Engagement Policy. and Engagement ORG2 2. Utilise social media and other communication channels to connect with Scenic Rim community. 3. Provide a communication channel to the community in disaster situations for the Local Disaster Management Group through the Emergency Operations Centre. Strategic Communication CF5 1. Maintain positive relationships with local and regional media organisations Communications ORG1 and ensure enquiries are responded to within agreed timeframes. and Engagement OS2 2. Prepare corporate communication materials and distribute to media and OS3 external stakeholders as required. OS4 3. Monthly media monitoring reports provided to Councillors and Executive Team. Corporate Identity CF5 1. Maintain Council website presence and deliver continuing improvement to Communications ORG1 online environment. and Engagement ORG2 2. Provide graphic design support to Council to assist in delivery of operational and organisational objectives. 3. Ensure material reflects Council branding and professional standards. Regional Collaboration CF5 1. Provide support to the Mayor and Chief Executive Officer in maintaining Communications ORG1 intergovernmental and inter‐regional relationships. and Engagement ORG2 Revenue Management CF3 1. Ensure rates are levied in accordance with statutory timeframes. Finance ORG4 CF4 2. Monitor outstanding rates and enforce collection actions. ORG3 CF5 OS2 CF6 OS3 CF7 OS4 Information Management CF6 1. Management of incoming correspondence. Information ORG4 CF7 2. Internal audit program on compliance with records standards. Management ORG3 CF8 3. Provide information archiving services. OS3 CE2 OS4 CE5 Information Access and Privacy CF5 1. Deliver compliant statutory and performance reporting. Governance ORG1 CF6 2. Maintain compliant information/disclosure registers. ORG2 CF7 3. Maintain compliant right to information publication scheme and ORG3 CF8 information request management process. ORG4 CF11 4. Maintain compliant information privacy functions. OS2 CE5 OS3
Operational Plan 2015/2016 | 3.0 Open and Responsive Government 11 Program Description Risk Link Deliverable(s) Department Strategies Complaints Management CF6 1. Maintain the Complaints Management Program. Governance ORG3 CF7 2. Deal with complaints in a manner compliant with legislative requirements. SPE3 CF11 ORG1 CF13 ORG2 CE2 ORG4 PO3 ORG5 OS1 OS2 OS4 Policy Development and Review CF4 1. Maintain policy register. Governance ORG3 CF5 2. Provide coordinated policy development and support services. SPE3 CF11 ORG1 CF12 ORG2 CE2 ORG4 CE3 ORG5 CE6 OS1 CE8 OS2 OS4 Delegations and Authorisations CF5 1. Maintain compliant delegations processes and registers. Governance ORG3 CF6 2. Maintain compliant local government authorised persons and worker SPE3 CF7 system. ORG4 CF9 Corporate Compliance Training and CF1 1. Implement Corporate Compliance Training and Development Program. Governance ORG3 Development CF4 ORG4 CF6 OS2 CF9 OS4 CF12 OS6 CF13 CE2 PO1 PO2
Operational Plan 2015/2016 | 3.0 Open and Responsive Government 12 4.0 Relaxed Living and Rural Lifestyle STATEMENT OF INTENT Council will manage future growth opportunities and development to preserve our natural assets and to enhance our rural lifestyle.
CORPORATE PLAN STRATEGIES RRL1 Assist the community to build capacity to respond to their needs and aspirations while also delivering programs and supporting events that promote active participation across all sections of our community. RRL2 Identify, plan and respond to the sport, recreation and leisure needs of our region by providing appropriate facilities and open space, and supporting a range of programs that will foster a healthy and active community. RRL3 Create a region that is home to a diverse range of residential options, a place where people desire to live, work and play. RRL4 Develop a planning vision and supporting planning instruments for the region which promotes community aspirations and clearly articulates the unique qualities of our natural assets and the identity of our towns, villages and communities.
4.1 Projects Project Description Risk Link Deliverable(s) Department Strategies Completion Date Mobile Technology CF6 1. Provide a report to the Chief Executive Officer on the Health, RRL4 1. 30/06/2016 CE2 implementation of mobile technology in the Building and Building and ORG3 CE5 Plumbing Area. Environment ORG4 Implement Boonah Planning Scheme CF5 1. Boonah Planning Scheme Amendment No. 5 Gazetted. Planning RRL3 1. 30/06/2016 Amendment No. 5 CF11 RRL4 CE3 SHE1 CE4 SPE3 CE8 ORG2 ORG5 VTV4 OS2
Operational Plan 2015/2016 | 4.0 Relaxed Living and Rural Lifestyle 13
4.2 Programs Program Description Risk Link Deliverable(s) Department Strategies Arts and Culture IA3 1. Implement Arts and Culture Plan objectives including the development Community and RRL1 CE8 work for the 2016 program theme "Caring for our Communities". Culture HER1 CF5 2. Operate Beaudesert and Boonah Cultural Centres. HER4 3. Heritage and Public Art program. VTV2 VTV3 Community Development CF5 1. Implement Social Plan priorities including Healthy & Active Program, Sport Community and RRL1 CE8 & Recreation, Youth, Seniors, & Caring for our Community Program. Culture HER1 WHS1 2. Deliver Council events program. HER4 3. Deliver Youth Leadership Program. VTV2 4. Annual Sports Forum and annual review. VTV3 Building and Plumbing CF6 1. Building approval services. Health, Building RRL4 CE2 2. Building compliance services. and SPE3 CE5 3. Plumbing approval services. Environment ORG3 WHS1 4. Plumbing compliance services. ORG4 5. Education and awareness. VTV4 Development Compliance CF6 1. Proactive Higher Risk Development compliance assessment. Health, Building RRL4 CE2 2. Community response to High Risk Developments. and SPE3 CE5 3. Community response ‐ non conforming developments. Environment ORG3 WHS1 4. Compliance Management Services to internal departments. ORG4 VTV4 HER5 Development Assessment CF6 1. Development Application Assessment Services. Planning RRL4 CE2 2. Planning and Flooding Certificates. SHE1 CE5 3. Pre‐lodgement and development advisory services. SPE3 WHS1 ORG3 ORG4 VTV4 Natural Hazard Areas (flood) in the CF6 1. Deliver ongoing flood hazard investigation and mapping of the catchments Planning RRL4 Scenic Rim CF8 within the Scenic Rim local government area. SHE1 CE2 SPE3 CE3 ORG5 HER5 OS4 Land Use Planning CE4 1. Respond to and implement changes to state and regional planning policy Planning RRL4 CF4 and legislation. ORG5 CF6 RRL3 CF7
Operational Plan 2015/2016 | 4.0 Relaxed Living and Rural Lifestyle 14 5.0 Vibrant Towns and Villages STATEMENT OF INTENT Council will work to improve the vibrancy of our towns and villages whilst recognising their heritage values and natural assets.
CORPORATE PLAN STRATEGI ES VTV1 Provide support to the community to own, develop and deliver diverse initiatives that reflect their individual character. VTV2 Create attractive and engaging places and spaces with a focus on town and village centres. VTV3 Support community events, activities and celebrations. VTV4 Encourage a mix of growth and development in our town centres to invigorate them, while recognising their heritage and character. VTV5 Ensure the provision of parks, open spaces and community infrastructure is consistent with identified local and regional needs.
5.1 Projects Project Description Risk Link Deliverable(s) Department Strategies Completion Date Parks and Amenities Strategy CF2 1. Parks and Amenities Strategy Implementation Plan Property and VTV5 1. 30/06/2016 CF5 delivered. Operations SHE1 2. 30/06/2016 IA2 2. Parks and Amenities Strategy Implementation Plan SHE2 IA3 outcomes considered by the Chief Executive Officer. RRL2 IA5 RRL4 CE4 ASR1 CE8 Vibrant and Active Towns and Villages CF2 1. Deliver capital projects. Regional VTV1 1. 30/06/2016 CF4 2. Create and deliver project master plans. Services VTV2 2. 30/06/2016 CF5 VTV3 IA2 VTV4 IA5 HER1 CE4 ASR1 CE8 WHS1
Parks, Gardens and Cemeteries CF2 1. 10 Year Parks, Gardens and Cemeteries Capital Works Property and VTV5 1. 31/12/2015 Planning CF5 program reviewed. Operations SHE1 2. 31/01/2016 IA2 2. 10 Year Parks, Gardens and Cemeteries Capital Works RRL2 3. 30/06/2016 IA5 program considered by Council. RRL4 CE6 3. Preplanning of 2016/2017 Parks, Gardens and Cemeteries ASR1 Capital Works projects undertaken.
Operational Plan 2015/2016 | 5.0 Vibrant Towns and Villages 15 5.2 Programs Program Description Risk Link Deliverable(s) Department Strategies Grants Programs CF5 1. Community and cultural grants. Community and VTV1 CF6 2. Regional Arts Development Fund (RADF) grants. Culture VTV3 CF14 3. Sport and recreational grants. CF15 CE8 Facilities Planning CF2 1. Preparation of 10 year Capital Works program. Property and VTV5 CF5 2. Preplanning for 2016/2017 projects. Operations SHE1 IA2 RRL2 IA5 RRL4 ASR1 Facilities Capital Works Program CF2 1. Facilities Capital Works program delivered. Property and VTV5 CF5 Operations SHE1 IA2 RRL2 IA5 Parks, Gardens and Cemeteries Capital CF2 1. Parks, Gardens and Cemeteries Capital Works program delivered. Property and VTV5 Works Program CF5 Operations SHE1 IA2 SHE2 IA5 RRL2 CE6 RRL4
Parks, Gardens and Cemeteries CF5 1. Parks, Gardens and Cemeteries operations and maintenance program Property and ASR2 Operations and Maintenance CF6 delivered. Operations VTV5 IA3 SHE1 CE1 SHE2 CE6 RRL2 RRL4
Operational Plan 2015/2016 | 5.0 Vibrant Towns and Villages 16 6.0 Accessible and Serviced Region STATEMENT OF INTENT Council will provide and advocate for infrastructure and services in accordance with the prioritised needs of our growing community.
CORPORATE PLAN STRATEGIES ASR1 Apply asset management, financial and environmental sustainability principles as fundamental components of infrastructure planning and management. ASR2 Provide a sustainable infrastructure network which provides adequate accessibility across the region. ASR3 Support community services to enhance connectivity between the region’s towns and villages and major adjoining urban centres. ASR4 Advocate for our region to facilitate investment for the provision of other key infrastructure and networks.
6.1 Projects Project Description Risk Link Deliverable(s) Department Strategies Completion Date Asset Management Strategy CF2 1. CorePlus 2018 Asset Management Improvement Plan Year 1 Infrastructure ASR1 1. 30/11/2015 CF5 actions delivered. Services ASR2 2. 31/12/2015 CF6 2. CorePlus 2018 Asset Management Improvement Plan Year 1 ASR3 IA1 action outcomes reported to the Chief Executive Officer. SPE2 IA2 ORG5 IA3 OS1 IA4 SHE1 IA5 VTV5 CE4
Asset Management Maturity CF2 1. Facilities Asset Management Plan updated. Infrastructure CF2 1. 30/11/2015 CF5 2. Facilities Asset Management Plan considered by Council. Services CF5 2. 31/12/2015 CF6 3. Bridges Asset Management Plan developed. CF6 3. 28/02/2016 IA1 4. Bridges Asset Management Plan considered by Council. IA1 4. 31/03/2016 IA2 5. Data Collection & Condition Assessment of infrastructure IA2 5. 30/06/2016 IA3 assets. IA3 IA4 IA4 IA5 IA5 CE4 CE1 CE4
Operational Plan 2015/2016 | 6.0 Accessible and Serviced Region 17 Project Description Risk Link Deliverable(s) Department Strategies Completion Date Stormwater Network Analysis CF2 1. Hydraulic capacity of stormwater networks analysed and Infrastructure ASR2 1. 30/04/2016 CF5 improvement projects identified. Services ASR1 2. 31/05/2016 CF6 2. Hydraulic capacity of stormwater network outcomes ASR3 IA1 considered by Council. SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE1 CE4
Design Services CF2 1. Design and Construction Manual reviewed and updated. Infrastructure ASR2 1. 30/06/2016 CF5 2. Reviewed Design and Construction Manual considered by Services ASR1 2. 30/06/2016 CF6 the Chief Executive Officer. SHE1 IA1 SHE7 IA2 ORG3 IA5 ORG4 CE3 ORG5 CE4 RRL4 VTV5 OS3
Facilities Planning CF2 1. Capital Works program reviewed. Property and VTV5 1. 31/12/2015 CF5 2. Capital Works program considered by Council. Operations SHE1 2. 31/01/2016 IA2 3. Preplanning for 2016/2017 projects of 2016/2017 Parks, RRL2 2. 30/06/2016 IA5 Gardens and Cemeteries Capital Works projects undertaken. RRL4 ASR1 Property Management Strategy CF2 1. Property Management Strategy Implementation Plan Property and ASR1 1. 30/06/2016 CF5 delivered. Operations RRL2 2. 30/06/2016 IA2 2. Property Management Strategy Implementation Plan IA3 outcomes considered by the Chief Executive Officer. IA5 CE4 CE8
Operational Plan 2015/2016 | 6.0 Accessible and Serviced Region 18 Project Description Risk Link Deliverable(s) Department Strategies Completion Date Roads and Streets Strategy CF2 1. Roads Strategy Implementation Plan delivered. Works ASR1 1. 30/06/2016 CF5 2. Roads Strategy Implementation Plan outcomes considered ASR2 2. 30/06/2016 CF6 by the Chief Executive Officer. ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4 Roads and Streets Planning CF2 1. 10 Year Roads and Streets Capital Works Program reviewed. Works ASR1 1. 31/01/2016 CF5 2. Reviewed 10 Year Roads and Streets Capital Works Program ASR2 2. 28/02/2016 CF6 considered by Council. ASR3 3. 30/06/2016 IA1 3. Preplanning of 2016/2017 Roads and Streets Capital Works SHE1 IA2 projects undertaken. SPE2 IA3 ORG5 IA4 OS1 IA4 CE4 Bridge Strategy CF2 1. Bridge Strategy Implementation Plan delivered. Works ASR1 1. 30/06/2016 CF5 2. Bridge Strategy Implementation Plan presented the Chief ASR2 2. 30/06/2016 CF6 Executive Officer. ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA4 CE1 CE4 Bridge Planning CF2 1. 10 Year Bridges Capital Works Program reviewed. Works ASR1 1. 31/01/2016 CF5 2. Reviewed 10 Year Bridges Capital Works Program ASR2 2. 28/02/2016 CF6 considered by Council. ASR3 3. 30/06/2016 IA1 3. Preplanning of 2016/2017 Bridge Capital Works projects SHE1 IA2 undertaken. SPE2 IA3 ORG5 IA4 OS1 IA4 CE4
Operational Plan 2015/2016 | 6.0 Accessible and Serviced Region 19 Project Description Risk Link Deliverable(s) Department Strategies Completion Date Floodways and Causeway Planning CF2 1. 10 Year Floodways and Causeway Capital Works Program Works ASR1 1. 31/01/2016 CF5 reviewed. ASR2 2. 28/02/2016 CF6 2. Reviewed 10 Year Floodways and Causeway Capital Works ASR3 3. 30/06/2016 IA1 Program considered by Council. SHE1 IA2 3. Preplanning of 2016/2017 Bridge Capital Works projects SPE2 IA3 undertaken. ORG5 IA4 OS1 IA4 CE4 Floodways and Causeway Strategy CF2 1. Floodways and Causeway Strategy Implementation Plan Works ASR1 1. 30/06/2016 CF5 delivered. ASR2 2. 30/06/2016 CF6 2. Floodways and Causeway Strategy Implementation Plan ASR3 IA1 outcomes considered by the Chief Executive Officer. SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4 Footpaths and Bikeways Planning CF2 1. 10 Year Footpaths and Bikeways Capital Works Program Works ASR1 1. 31/12/2015 CF5 reviewed. ASR2 2. 31/01/2016 CF6 2. Review of 10 Year Footpaths and Bikeways Capital Works ASR3 3. 30/06/2016 IA1 Program considered by Council. SHE1 IA2 3. Preplanning of 2016/2017 Bridge Capital Works projects SPE2 IA3 undertaken. ORG5 IA4 OS1 IA4 CE4 Footpaths and Bikeways Strategy CF2 1. Footpaths and Bikeways Strategy Implementation Plan Works ASR1 1. 30/06/2016 CF5 delivered. ASR2 2. 30/06/2016 CF6 2. Footpaths and Bikeways Strategy Implementation Plan ASR3 IA1 outcomes considered by the Chief Executive Officer. SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA4 CE1 CE4
Operational Plan 2015/2016 | 6.0 Accessible and Serviced Region 20 6.2 Programs Program Description Risk Link Deliverable(s) Department Strategies Development Assessment ‐ CF6 1. Operational Works assessment services delivered. Infrastructure ASR2 Operational Works CE2 Services SPE3 CE5 ORG3 WHS1 ORG4 VTV4 SPE1 Design Services CF6 1. Undertake Delivery of required designs for asset construction, renewal and Infrastructure ASR2 CE2 maintenance. Services SPE3 CE5 2. Technical Advice on Development Applications. ORG3 WHS1 ORG4 VTV4 SPE1 Facilities Operations and Maintenance CF5 1. Facilities Operations and Maintenance program delivered. Property and ASR2 CF6 Operations VTV5 IA3 SHE1 CE1 RRL2 Property Management CF5 1. Council owned property managed. Property and ASR2 CF6 Operations VTV5 IA3 RRL2 CE1 Roads and Streets Capital Works CF2 1. Roads and Streets Capital Works Program delivered. Works ASR1 CF5 ASR2 CF6 ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4 Roads and Streets Operations and CF2 1. Roads and Streets Operations and Maintenance Program delivered. Works ASR1 Maintenance CF5 2. Private Infrastructure Roads managed. ASR2 CF6 3. Unconstructed roads issues managed. ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4
Operational Plan 2015/2016 | 6.0 Accessible and Serviced Region 21 Program Description Risk Link Deliverable(s) Department Strategies Bridge Capital Works CF2 1. Bridge Capital Works Program delivered. Works ASR1 CF5 ASR2 CF6 ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4 Bridge Operations and Maintenance CF2 1. Bridge Operations and Maintenance Program delivered. Works ASR1 CF5 ASR2 CF6 ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4 Floodways and Causeway Capital CF2 1. Floodways and Causeway Capital Works program delivered. Works ASR1 Works CF5 ASR2 CF6 ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4 Floodways and Causeway Operations CF2 1. Floodways and Causeway Operations and Maintenance program delivered. Works ASR1 and Maintenance CF5 ASR2 CF6 ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4
Operational Plan 2015/2016 | 6.0 Accessible and Serviced Region 22 Program Description Risk Link Deliverable(s) Department Strategies Footpaths and Bikeways Capital Works CF2 1. Footpaths and Bikeways Capital Works program delivered. Works ASR1 CF5 ASR2 CF6 ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4 Footpaths and Bikeways Operations CF2 1. Footpaths and Bikeways Operations and Maintenance program delivered. Works ASR1 and Maintenance CF5 ASR2 CF6 ASR3 IA1 SHE1 IA2 SPE2 IA3 ORG5 IA4 OS1 IA5 CE4 Infrastructure Flood Recovery CF4 1. Flood Recovery Program finalised. Works ASR2 CF6 SHE1 CF11 SPE2 CF12 IA1 IA3 IA4 CE2 WHS1
Operational Plan 2015/2016 | 6.0 Accessible and Serviced Region 23 7.0 Healthy, Engaged and Resourceful Communities STATEMENT OF INTENT Council will build and strengthen the social fabric of our growing region which is based on friendly, active and healthy communities and our natural environment.
CORPORATE PLAN STRATEGIES HER1 Assist in building community capacity through sport, recreation, arts and culture. HER2 Provide strong advocacy for quality health, social services education and training services that focus on the needs of the community. HER3 Provide a contemporary and independent library service throughout the region and partner state government agencies to ensure services reflect agreed State standards. HER4 Provide and support a variety of events of a local, regional and national significance that contribute to the social, cultural and economic prosperity of the region. HER5 Deliver public health and safety risk management initiatives, education and healthy lifestyle programs that promote and support a safe and healthy living environment.
7.1 Projects Project Description Risk Link Deliverable(s) Department Strategies Completion Date Environmental Partnerships CF5 1. Provide a report to the Chief Executive Officer on the Health SHE1 1. 30/06/2016 CF6 development of a strategy to improve the management of Building & SHE2 CE3 our partnerships. Environment SHE3 CE8 SHE4 SHE7 Disaster Management CF2 1. SES Support Management Plan reviewed. Infrastructure HER5 1. 30/11/2015 CF4 2. SES Support Management Plan considered by Council. Services ORG3 2. 31/12/2015 CF5 3. Disaster Management Strategy Implementation Plan ORG4 3. 30/06/2016 IA1 delivered. ORG5 4. 30/06/2016 IA2 4. Disaster Management Strategy Implementation Plan ASR3 CE2 outcomes considered by the Chief Executive Officer. HER2 CE7
Operational Plan 2015/2016 | 7.0 Healthy, Engaged and Resourceful Communities 24 7.2 Programs Program Description Risk Link Deliverable(s) Department Strategies Libraries CF5 1. Operate library branches and mobile library service. Community and HER3 CF8 2. Implement Library Services Strategic Plan priorities. Culture SPE2, IA2 3. Provide events, activities and services to engage children, SPE4 IA3 adults and people with special needs. ORG1 IA6 ORG3 CE4 RRL1 CE8 RRL2 WHS1 VTV2 VTV3 ASR1 HER1 HER2 HER3 HER4 OS2 Public Health CF5 1. School‐based immunisation program. Health Building HER5 CF6 2. Public health regulatory services. and SHE1 IA3 3. Food safety licensing and regulatory services. Environment SHE2 IA5 4. Local law community response and approvals. SHE3 CE1 5. Mosquito Management. VTV1 CE2 SPE1 CE3 ORG3 CE4 ORG4 CE6 OS2 WHS1 OS3 Animal Management CF5 1. Dog registration. Health Building HER5 CF6 2. After hours response. and SHE1 IA3 3. Community response. Environment SHE2 CE1 4. Stock control. SHE3 CE2 5. Education Program. VTV1 CE4 SPE1 CE5 ORG3 CE8 ORG4 WHS1 OS2 OS3
Operational Plan 2015/2016 | 7.0 Healthy, Engaged and Resourceful Communities 25 Program Description Risk Link Deliverable(s) Department Strategies Disaster Management CF2 1. State Emergency Service (SES) operations supported as required by Infrastructure HER5 CF4 Legislation. Services ORG3 CF5 2. Emergency Operations Centre maintained. ORG4 IA1 ORG5 IA2 ASR3 CE2 HER2 CE7 Waste Disposal Operations and CF5 1. Waste Disposal operations and maintenance program delivered. Property and HER5 Maintenance CF6 Operations SHE5 IA3 SHE1 CE1 SHE2 CE5 SHE7 ASR1
Operational Plan 2015/2016 | 7.0 Healthy, Engaged and Resourceful Communities 26 8.0 Organisational Sustainability STATEMENT OF INTENT Council strives to be a high performing and financially sustainable organisation with robust governance structures based on the principles of risk management and continuous improvement. We offer a safe, positive work environment, value and reward our staff and are committed to providing ongoing development and training.
CORPORATE PLAN STRATEGIES OS1 Implement and maintain an integrated strategic planning framework across Council, which embeds performance, financial and asset management principles. OS2 Deliver quality customer focussed services while recognising the impact on the capacity of ratepayers to pay, and contain rate increases as much as practicable. OS3 Provide corporate business systems to drive effective and efficient delivery of services and infrastructure. OS4 Implement effective risk management and maintain contemporary business processes. OS5 Build effective leadership and management capabilities across the organisation, encourage teamwork and innovation. OS6 Provide a systematic approach to staff performance management and development to create a high performance culture that delivers Council’s goals and objectives.
8.1 Projects Project Description Risk Link Deliverable(s) Department Strategies Completion Date Financial Sustainability Strategy CF2 1. Progress alignment of Asset Management Plan funding Finance OS1 1. 30/‐6/2016 CF3 requirements with Long Term Financial Forecast. ASR1 CF4 2. Progress alignment of Local Government Infrastructure Plan OS2 2. 30/06/2016 IA2 funding requirements with Long Term Financial Forecast. OS4 IA3 IA4 IA5 CE4 Introduce ICT‐as‐a‐Service CF7 1. Implement IaaS Hosted Solution. Information OS3 1. 30/06/2016 CF9 2. Migrate On‐premise Technology On. Services ORG3 2. 30/06/2016 CF10 OS2 OS4
Operational Plan 2015/2016 | 8.0 Organisational Sustainability 27 Project Description Risk Link Deliverable(s) Department Strategies Completion Date Fleet Business Plan CF2 1. Fleet Business Plan actions delivered. Infrastructure OS3 1. 31/12/2015 CF4 2. Fleet Business Plan outcomes considered by the Chief Services OS1 2. 31/01/2016 CF5 Executive Officer. OS4 CF7 SHE1 IA3 ASR1 CE1 Delegations Review CF4 1. Conduct review of delegations in accordance with Governance OS1 1. 30/06/2016 CF5 regulatory requirements. OS2 2. 30/06/2016 CF6 2. Review outcomes and recommendations considered by OS3 CE2 Council. OS4 CE5 ORG1 PO2 ORG2 ORG3 Correspondence Guidelines review CF5 1. Review the correspondence guidelines. Governance OS3 1. 30/09/2015 2. Conduct awareness program to staff of the correspondence OS2 2. 31/12/2015 guidelines. 3. 31/03/2016 3. Quality assurance and audit review of guidelines. Implement Risk Management module CF4 1. Implement Risk management module. Governance OS4 1. 30/06/2016 CF7 2. Conduct training for staff. ORG3 2. 30/06/2016 CF12
Operational Plan 2015/2016 | 8.0 Organisational Sustainability 28 8.2 Programs Program Description Risk Link Deliverable(s) Department Strategies Customer Service CF5 1. Operate Council Customer Contact Centres including call centre. Community and OS2 CF6 2. Implement priorities from Customer Contact strategy. Culture OS3 CF7 OS4 CF9 OS5 CF11 ORG1 CE8 ORG3 WHS1 ORG4 Long Term Financial Forecast including CF2 1. Deliver annual budget in accordance with statutory timeframes and Finance OS1 Annual Budget CF3 Council's endorsed budget timetable. CF4 2. Perform quarterly budget reviews. CF6 3. Report actual performance against budget to Council monthly. CF14 IA2 IA3 IA4 IA5 CE4 CE8 Treasury Management CF3 1. Invest funds surplus to requirements in accordance with legislation and Finance OS1 CF6 Council’s Investment Policy. ORG3 CF7 2. Management of forecast cash flows ensuring sufficient liquidity to support OS2 Council's operations. OS3 OS4 Accounts Receivable & Payables CF3 1. Management of staff and Councillor payments in accordancewith required Finance OS1 Management CF5 timeframes. ORG CF6 2. Management of supplier payments in accordance with established 3 CF7 timeframes. OS2 CF14 3. Monitor outstanding debtors and enforce collection actions. OS3 CF15 OS4 Corporate Procurement Management CF1 1. Management of centralised procurement function. Finance OS2 CF3 2. Management of stores inventory in accordance with operational SPE1 CF4 requirements. SPE3 CF5 3. Conduct annual stocktake of stores inventory. ORG3 CF6 4. Coordinate equipment safety inspections in accordance with required OS3 CF7 timeframes. OS4 CF14 CF15
Operational Plan 2015/2016 | 8.0 Organisational Sustainability 29 Program Description Risk Link Deliverable(s) Department Strategies Financial Management CF3 1. Ensure general ledger structure supports new and emerging business Finance OS3 CF4 information requirements. ORG3 CF5 2. Prepare and submit monthly Goods & Services Tax returns in accordance OS1 CF6 with statutory timeframes. OS4 3. Prepare and submit annual Fringe Benefits Tax return in accordance with statutory timeframes. 4. Management of Council's loan program. 5. Annual stocktake of portable and attractive asset register. 6. Investigate implementation of ePayments and online applications for Technology One. Property and Land Record CF3 1. Ensure name and address records and land and property records are Finance OS3 Management CF6 updated in accordance with required timeframes. ORG3 ORG4 OS2 OS4 Insurance Risk Management CF1 1. Ensure Council's insurance requirements are met and adequate coverage is Finance OS4 CF6 maintained. ORG3 CF7 2. Management of insurance claims. OS2 CF8 OS3 CF15 IA1 IA3 IA4 CE1 WHS1 Statutory Financial Reporting CF2 1. Deliver annual financial reports in accordance with statutory timeframes. Finance OS1 CF3 2. Coordinate external audit and delivery of requirements in accordance with ORG3 CF4 the external audit timetable. ASR1 CF6 OS2 CE8 OS3 OS4 Asset Valuations CF3 1. Review of asset valuation assumptions prior to preparation of annual Finance ASR1 CF4 financial statements. ORG3 CF6 2. Desktop asset valuations performed for the year ended 30 June 2016. OS1 CE8 OS3 OS4
Operational Plan 2015/2016 | 8.0 Organisational Sustainability 30 Program Description Risk Link Deliverable(s) Department Strategies Staffing and Administration CF4 1. Effective, efficient and legally compliant recruitment and selection Human OS2 CF5 practices. Resources OS3 CF6 2. An organisational structure that reflects appropriate relativities. OS4 CF7 3. Accurate and legally compliant personal records and administration. OS5 CF9 OS6 CF11 ORG1 ORG3 Training and Development CF4 1. Annual Corporate Training Programs addressing Training needs identified Human OS2 CF5 through the annual Personal Performance and Development (PPD) process. Resources OS3 CF6 2. Corporate Induction that is timely, professional and informative. OS4 CF7 3. Management and Leadership Development that contributes to ethical and OS5 CF9 highly competent Management and Leadership across the organisation. OS6 WHS1 ORG3 Workplace Health and Safety CF4 1. A Workplace Health and Safety Management System that ensures Human OS2 CF5 compliance with Workplace Health and Safety legislation and minimises risk Resources OS3 CF6 to the health and safety of all workers. OS4 CF7 2. A Rehabilitation and Return to Work Framework that ensures compliance OS5 CF9 with Workers' Compensation legislation. OS6 WHS1 3. An Employee Wellbeing Framework that enhances the wellbeing of our ORG3 employees and contributes to higher staff morale and productivity. Employee Relations CF4 1. Employee Relations practices that enhance productivity through prompt Human OS2 CF5 and effective resolution of all staff disciplinary and performance related Resources OS3 CF6 matters. OS4 CF7 2. Deliver a Corporate Citizenship Program that ensures that all staff are OS5 CF9 familiar with behavioural expectations based on employment legislation, OS6 WHS1 Code of Conduct and Corporate Values. ORG3 Organisational Development CF4 1. Staff engagement through biannual Corporate Culture and Climate Surveys. Human OS2 CF5 2. Action Plans to address matters identified in the biannual Corporate Resources OS3 CF6 Culture and Climate Surveys. OS4 CF7 3. A contemporary Workforce Planning Framework. OS5 CF9 4. A Staff Reward and Recognition Framework. OS6 WHS1 ORG3 Software Management CF6 1. Management of software licences and support agreements. Information OS3 CF7 2. Maintenance and support of business systems. Services ORG4 CF8 OS4 CE2
Operational Plan 2015/2016 | 8.0 Organisational Sustainability 31 Program Description Risk Link Deliverable(s) Department Strategies Geographical Information Systems CF7 1. Maintain internal mapping system and integration with core property and Information OS3 (GIS) CE2 rating system. Services ORG4 CE5 2. Maintain and update mapping component of online property enquiry OS2 system. OS4 3. Maintain street and rural road numbering in conjunction with relevant Departments. 4. Assist with mapping requirements for new Planning Scheme. Help Desk System of Information CF7 1. Delivery of helpdesk services. Information OS3 Technology CF9 Services ORG3 CF10 OS2 OS4 Business Continuity for Information CF6 1. Annual test of Information Technology disaster recovery Information OS4 Technology CF7 procedures. Services ORG3 CF8 OS3 IA1 CE2 CE7 Fabrication Services CF2 1. Fabricated items delivered in accordance with requirements. Infrastructure OS3 CF4 Services OS1 CF5 OS4 CF7 SHE1 IA3 ASR1 CE1 Fleet Service Operations and CF2 1. Workshop operations maximising fleet availability. Infrastructure OS3 Maintenance CF4 2. Fleet maintained to manufacturers' requirements. Services OS1 CF5 OS4 CF7 SHE1 IA3 ASR1 CE1 Fleet Procurement CF2 1. Fleet Procurement Program delivered. Infrastructure OS3 CF4 Services OS1 CF5 OS4 CF7 SHE1 IA3 ASR1 CE1 Risk Management CF6 1. Administer Risk Management documents. Governance OS4 CF7 2. Maintenance and review of organisational risk registers. ORG3 CF12 3. Provide advice and support on risk management to Council service areas. HER5 4. Administer internal audit function. 5. Audit and Risk Committee.
Operational Plan 2015/2016 | 8.0 Organisational Sustainability 32 Key Performance Indicators
Corporate Plan Theme KPI Title KPI Descriptor KPI Target Department 1.0 Spectacular Scenery & Environmental Pollution and 1. Requests for Action for all customer requests responded to within 100% Health, Building & Healthy Environment Nuisance applicable service standards Environment 1.0 Spectacular Scenery & Nature Conservation 1. Site visits undertaken for all Land for Wildlife participating properties 50% Health, Building & Healthy Environment Environment 1.0 Spectacular Scenery & Nature Conservation 2. Site visits undertaken for all Voluntary Conservation Agreement 100% Health, Building & Healthy Environment participating properties Environment 1.0 Spectacular Scenery & Pest Management 1. Programed property inspections undertaken in accordance with 95% Health, Building & Healthy Environment operational guidelines Environment 1.0 Spectacular Scenery & Pest Management 2. Nominated roadside (local road) weed control activities undertaken in 95% Health, Building & Healthy Environment accordance with operational guidelines Environment 1.0 Spectacular Scenery & Reserve Management 1. Undertake bushfire mitigation works in accordance with Management 95% Health, Building & Healthy Environment Plan Environment 1.0 Spectacular Scenery & State Road Weed Control Nominated weed control activities on State roads undertaken in in 95% Health, Building & Healthy Environment accordance with treatment schedule Environment 2.0 Sustainable and Development Application 1. Assessment of applications within applicable service standards 100% Health, Building & Prosperous Economy Responses Environment 2.0 Sustainable and Development Assessment 1. Development application assessed within statutory timeframes 100% Planning Prosperous Economy 2.0 Sustainable and Development Assessment 1. Measurement of timeframes for assessment of Development 100% Planning Prosperous Economy Applications including negotiated decision notices, change to conditions and change to approvals against Council of Mayors targets: a) Total time from lodgement to Decision b) Average time to issue Acknowledgement Notice (if one required) c) Average time taken to complete information request (if requested) d) Time to contact applicant after lodgement e) Time for Application to be allocated to an Officer 2.0 Sustainable and Operational Works 1. Operational Works development application processing timeframes 100% Infrastructure Prosperous Economy against Council of Mayors targets Services 2.0 Sustainable and Planning Certificates 1. Planning certificates issued within statutory timeframes 100% Planning Prosperous Economy 2.0 Sustainable and Survey Plans 1. Signing and sealing of survey plans managed in accordance with 100% Property & Prosperous Economy statutory timeframes Operations 3.0 Open and Responsive Complaints Management 1. Customer acknowledgement of complaints within 14 business days 100% Regional Services Government
Operational Plan 2015/2016 | Key Performance Indicators 33 Corporate Plan Theme KPI Title KPI Descriptor KPI Target Department 3.0 Open and Responsive Complaints Management 2. Provide a written outcome response to the complainant within 28 100% Regional Services Government business days of complaint finalisation 3.0 Open and Responsive Customer Service Standards 1. Agreed services delivered and general information requests 80% Community & Government responded to at first contact resolution Culture 3.0 Open and Responsive Customer Service Standards 1. Provide a response within the relevant service standard for the 90% Community & Government service you requested Culture 3.0 Open and Responsive Customer Service Standards 1. When you write or email Council, we aim to: 90% Community & Government ‐ Respond to you within 10 working days Culture ‐ If we cannot complete your request within that time an expected completion date will be supplied with an acknowledgement of your correspondence within 10 working days This acknowledgement can be in written form, by telephone, facsimile or email 3.0 Open and Responsive Delegations and 1. Chief Executive Officer delegation requests processed within 10 100% Regional Services Government Authorisations business days 3.0 Open and Responsive Delegations and 2. Updates to delegation register recorded within 5 business days 100% Regional Services Government Authorisations 3.0 Open and Responsive Information Access and 1. Right to Information and Information Privacy applications processed 100% Regional Services Government Privacy within statutory timeframes 3.0 Open and Responsive Information Access and 2. Requests to update Councillor Register of Interests processed within 100% Regional Services Government Privacy statutory timeframes 3.0 Open and Responsive Policy Development and 1. Council policies reviewed within nominated review schedule 100% Regional Services Government Review 3.0 Open and Responsive Statutory Financial Reporting 1. Annual financial statements audited and signed by QAO by 31 100% Finance Government October 4.0 Relaxed Living and Rural Building and Plumbing 1. Building applications approved within statutory timeframes 100% Health, Building & Lifestyle Environment 4.0 Relaxed Living and Rural Camping Grounds 1. Camp facilities available for use during scheduled State school and 90% Property & Lifestyle public holidays Operations 4.0 Relaxed Living and Rural Development Compliance 1. Compliance assessments for Higher Risk Developments undertaken 95% Health, Building & Lifestyle within 3 months of commencement of use Environment 4.0 Relaxed Living and Rural Healthy and Active Program 1. Deliver nominated activities in accordance with program schedule 90% Community & Lifestyle Culture 4.0 Relaxed Living and Rural Land Use Planning 1. Submissions to proposed changes to state and regional planning 100% Planning Lifestyle policy and legislation provided within public consultation timeframes 4.0 Relaxed Living and Rural Sporting Facility Availability 1. All Council sporting facilities available for scheduled fixtures 90% Property & Lifestyle Operations
Operational Plan 2015/2016 | Key Performance Indicators 34 Corporate Plan Theme KPI Title KPI Descriptor KPI Target Department 5.0 Vibrant Towns and Building and Plumbing 2. Plumbing application approved within statutory timeframes 100% Health, Building & Villages Environment 5.0 Vibrant Towns and Community Facility 1. Libraries available for use during nominated opening hours 90% Property & Villages Maintenance Operations 5.0 Vibrant Towns and Community Facility 2. Swimming Pool water tested monthly during pool season 90% Property & Villages Maintenance Operations 5.0 Vibrant Towns and Community Facility 3. Swimming Pools available for use during nominated opening hours 90% Property & Villages Maintenance Operations 5.0 Vibrant Towns and Nurseries and Gardens 1. Request for Action responded to within 5 business days 90% Property & Villages Operations 5.0 Vibrant Towns and Nurseries and Gardens 2. Plant stock available satisfy requests in accordance with Free Tree 90% Property & Villages Program Operations 5.0 Vibrant Towns and Park Buildings and Furniture 1. Request for Action responded to within 5 business days 90% Property & Villages Operations 5.0 Vibrant Towns and Park Buildings and Furniture 2. Playground equipment inspected annually 100% Property & Villages Operations 5.0 Vibrant Towns and Parks 1. Requests for Action responded to within 5 business days 90% Property & Villages Operations 5.0 Vibrant Towns and Parks 2. Requests for Action for Tree Work responded to within 10 working 90% Property & Villages days Operations 5.0 Vibrant Towns and Parks 3. Parks slashing schedule delivered in the month specified or in the 90% Property & Villages month immediately after (excluding areas to be slashed monthly) Operations 6.0 Accessible and Serviced Alliance and Contract Works 1. Annual operating surplus >20% Works Region 6.0 Accessible and Serviced Bridge Program 1. Load limits for timber bridges above acceptable load limit total >75% Works Region 6.0 Accessible and Serviced Bridge Program 2. The bridge load limit ratio is not to be less than 0.90 >0.90 Works Region 6.0 Accessible and Serviced Building and Plumbing 3. Requests for action are responded to in line with service standards 100% Health, Building & Region Environment 6.0 Accessible and Serviced Cemeteries 2. Process all applications for burials within 2 business days 90% Property & Region Operations 6.0 Accessible and Serviced Footpaths 1. Footpath network inspected, with defects logged, prioritised and 95% Works Region programmed 6.0 Accessible and Serviced Manage Council Buildings and 1. RCD testing completed every 6 months 100% Property & Region Depots Operations 6.0 Accessible and Serviced Manage Council Buildings and 2. Test and tagging completed quarterly 90% Property & Region Depots Operations
Operational Plan 2015/2016 | Key Performance Indicators 35 Corporate Plan Theme KPI Title KPI Descriptor KPI Target Department 6.0 Accessible and Serviced Manage Council Buildings and 3. Fire extinguisher testing completed every 6 months 90% Property & Region Depots Operations 6.0 Accessible and Serviced Property Management 1. Leases /agreements maintained within currency period 90% Property & Region Operations 6.0 Accessible and Serviced Public Amenity Facilities 1. Requests for Action for public amenity facility maintenance 90% Property & Region responded to within 48 hours Operations 6.0 Accessible and Serviced Road and Street Program 1. Number of road surface and reliability complaints per one million trip 5 valid Works Region kilometres complaint Target: 5 valid complaints or less s or less 6.0 Accessible and Serviced Waste Collection 1. Missed collection serviced within next business day 100% Property & Region Operations 6.0 Accessible and Serviced Waste Collection 1. Replacement bins delivered within 3 business days 100% Property & Region Operations 6.0 Accessible and Serviced Waste Collection 2. New Service: New collection commenced within 15 business days 100% Property & Region Operations 7.0 Healthy, Engaged and Animal Management 1. Reported animal attacks responded to within 24 hours 100% Health, Building & Resourceful Communities Environment 7.0 Healthy, Engaged and Animal Management 2. Number of dog registrations paid for the financial year 95% Health, Building & Resourceful Communities Environment 7.0 Healthy, Engaged and Animal Management 3. Livestock wandering within a road reserve area responded to within 90% Health, Building & Resourceful Communities 24 hours Environment 7.0 Healthy, Engaged and Animal Management 4. Collection of stray domestic animal requests are completed within 90% Health, Building & Resourceful Communities one business day. Environment 7.0 Healthy, Engaged and Animal Management 5. Environmental noise nuisance from animal requests are resolved 80% Health, Building & Resourceful Communities within 30 days Environment 7.0 Healthy, Engaged and Animal Management 6. Impounded animals suitable for adoption to be transferred to a 95% Health, Building & Resourceful Communities rehoming organisation Environment 7.0 Healthy, Engaged and Animal Management 7. Declared pest animal information on control methods provided to 100% Health, Building & Resourceful Communities landholders within 30 days Environment 7.0 Healthy, Engaged and Cemeteries 1. Requests for Action for mowing and maintenance responded to 90% Property & Resourceful Communities within 5 business days Operations 7.0 Healthy, Engaged and Public Health 1. Vaccination rate of students with parental/guardian consent is 85% Health, Building & Resourceful Communities greater than 85% Environment 7.0 Healthy, Engaged and Public Health 2. Vaccination rate of total cohort is greater than 60% 60% Health, Building & Resourceful Communities Environment
Operational Plan 2015/2016 | Key Performance Indicators 36 Corporate Plan Theme KPI Title KPI Descriptor KPI Target Department 7.0 Healthy, Engaged and Public Health 3. Requests for Action for all customer requests responded to within 100% Health, Building & Resourceful Communities applicable service standards Environment 7.0 Healthy, Engaged and Regulatory Approvals 1. Assessment of legislative and Local Law licences / approvals within 100% Health, Building & Resourceful Communities legislative guidelines and policies Environment 8.0 Organisational Asset Management 1. Portable and attractive assets stocktake completed by 30 June 2015 100% Finance Sustainability 8.0 Organisational Financial Performance 1. Annual rates outstanding less than 6% at 30 June 2015 100% Finance Sustainability 8.0 Organisational Financial Performance 2. Levy rates six monthly by 31 July 2014 and 31 January 2015 100% Finance Sustainability 8.0 Organisational Financial Performance 3. Investment returns to be greater than average QTC overnight cash 100% Finance Sustainability rate 8.0 Organisational Financial Performance 4. Investments to remain within credit rating and counterparty limits set 100% Finance Sustainability in the Investment Policy 8.0 Organisational Financial Planning, 1. Annual budget adopted by 30 June 2015 100% Finance Sustainability Measurement and Reporting 8.0 Organisational Financial Planning, 2. Fringe Benefits Tax return submitted by 21 May 2015 100% Finance Sustainability Measurement and Reporting 8.0 Organisational Financial Planning, 3. Monthly and year to date financial results reported to Finance 100% Finance Sustainability Measurement and Reporting Committee at next available meeting following end of month 8.0 Organisational Financial Planning, 4. Insurance for the following financial year finalised by 30 June 2015 100% Finance Sustainability Measurement and Reporting 8.0 Organisational Payables Management 1. Staff and Councillors paid fortnightly in accordance with established 100% Finance Sustainability pay periods 8.0 Organisational Payables Management 2. Goods & Services Tax returns submitted by the 21st of each month 100% Finance Sustainability 8.0 Organisational Procurement Management 1. Inventory turnover ratio to be greater than 2 times for Supply section 100% Finance Sustainability for preceding 12 months Calculated by 2014‐15 stock issues divided by average inventory balance 30 June 2015/30 June 2014
8.0 Organisational Fabrication 1. Fabricated items supplied to end user on time 90% Infrastructure Sustainability Services 8.0 Organisational Fleet 1. Fleet availability 90% Infrastructure Sustainability Services 8.0 Organisational Fleet 2. Fleet Capital Purchases completed 90% Infrastructure Sustainability Services
Operational Plan 2015/2016 | Key Performance Indicators 37 Corporate Plan Theme KPI Title KPI Descriptor KPI Target Department 8.0 Organisational Human Resources Services 1. The administration of personal records are legally compliant at all 100% Human Resources Sustainability times 8.0 Organisational Human Resources Services 2. Recruitment and Selection practices are legally compliant at all times 100% Human Resources Sustainability 8.0 Organisational Information Management 1. Records Management Helpdesk requests resolved within one working 90% Information Services Sustainability day 8.0 Organisational Information Management 2. IT Helpdesk requests of Priority 4 and above resolved within 30 days 80% Information Services Sustainability 8.0 Organisational Information Management 3. Incoming correspondence registered into ECM and tasked within one 90% Information Services Sustainability business day of being received 8.0 Organisational Organisational Development 1. Corporate Culture and Climate Surveys conducted biannually by 30 100% Human Resources Sustainability June. 8.0 Organisational Organisational Development 2. Action Plans developed by 30 November biannually to address 100% Human Resources Sustainability matters identified in the Corporate Culture and Climate Surveys 8.0 Organisational Staff Performance and 1. Personal Performance and Development Plan activities for all staff 90% Human Resources Sustainability Development undertaken within relevant timeframes 8.0 Organisational Staff Performance and 2. Industrial Relations legislation complied with at all times 100% Human Resources Sustainability Development 8.0 Organisational Workplace Health and Safety 1. Workplace Health and Safety legislation complied with at all times 100% Human Resources Sustainability 8.0 Organisational Workplace Health and Safety 2. Workers' Compensation legislation complied with at all times. 100% Human Resources Sustainability
Operational Plan 2015/2016 | Key Performance Indicators 38 Customer Service Standards
Appendix 1: Corporate Plan Strategy Codes CORPORATE PLAN THEME CORPORATE PLAN STRATEGY 1.0 Spectacular Scenery & SHE1 Ensure environmental considerations and sustainability principles are integrated into key decision‐making Healthy Environment processes, policies and procedures including future land use planning, and infrastructure and organisational service delivery. SHE2 Conserve, protect and enhance the region’s unique biodiversity, scenic vistas, natural resources and ecological processes. This will include taking steps to minimise the impact of pest species, improving degraded land and waterways, and protecting and enhancing environmental corridors. SHE3 Engage and partner with key stakeholders in all sectors to progress prosperity and sustainability through coordinated decision making and regional ecosystem investment that duly recognises the significance of our environment and ecosystem services. SHE4 Recognise and support the right to farm by our rural landholders and provide appropriate tools, opportunities, incentives and support to strengthen environmental management practices. SHE5 Provide innovative waste reduction, recycling and management practices to minimise adverse effects of waste on the environment and impacts on the community. SHE6 Provide strong advocacy to ensure our region is protected from industries such as coal mines and coal seam gas development. SHE7 Recognise and manage the impacts of climate change and peak oil. 2.0 Sustainable and Prosperous SPE1 Encourage local investment and sustainable business practices, and provide appropriate tools, opportunities, Economy incentives and support to our business sector to build capacity, expertise, broaden the region’s economic base and enhance innovation. SPE2 Invest in appropriate infrastructure to stimulate the ongoing development of our region. SPE3 Ensure we operate in a way that recognises and supports business needs and aspirations while protecting broader community and environmental interests. SPE4 Advocate and support the planning and delivery of major projects that align with the community plan’s regional vision, in collaboration with government agencies and other key stakeholders. 3.0 Open and Responsive ORG1 Continue to develop initiatives and processes to communicate and engage with our diverse community. Government ORG2 Facilitate community participation in decision making. ORG3 Create a corporate environment underpinned by ethical behaviour that fosters a proactive customer service culture, processes and procedures that progress open and accountable governance and apply a risk management approach. ORG4 Provide streamlined and practical regulatory services that deliver on the shared vision with the community. ORG5 Provide strong advocacy on local issues of significance and pursue an integrated whole‐of government approach to planning, coordination and improvements in the provision of essential services and infrastructure.
Operational Plan 2015/2016 | Appendix 1: Corporate Plan Strategy Codes 39 CORPORATE PLAN THEME CORPORATE PLAN STRATEGY 4.0 Relaxed Living and Rural RRL1 Assist the community to build capacity to respond to their needs and aspirations while also delivering Lifestyle programs and supporting events that promote active participation across all sections of our community. RRL2 Identify, plan and respond to the sport, recreation and leisure needs of our region by providing appropriate facilities and open space, and supporting a range of programs that will foster a healthy and active community. RRL3 Create a region that is home to a diverse range of residential options, a place where people desire to live, work and play. RRL4 Develop a planning vision and supporting planning instruments for the region which promotes community aspirations and clearly articulates the unique qualities of our natural assets and the identity of our towns, villages and communities. 5.0 Vibrant Towns and Villages VTV1 Provide support to the community to own, develop and deliver diverse initiatives that reflect their individual character. VTV2 Create attractive and engaging places and spaces with a focus on town and village centres. VTV3 Support community events, activities and celebrations. VTV4 Encourage a mix of growth and development in our town centres to invigorate them, while recognising their heritage and character. VTV5 Ensure the provision of parks, open spaces and community infrastructure is consistent with identified local and regional needs. 6.0 Accessible and Serviced ASR1 Apply asset management, financial and environmental sustainability principles as fundamental components of Region infrastructure planning and management. ASR2 Provide a sustainable infrastructure network which provides adequate accessibility across the region. ASR3 Support community services to enhance connectivity between the region’s towns and villages and major adjoining urban centres. ASR4 Advocate for our region to facilitate investment for the provision of other key infrastructure and networks. 7.0 Healthy, Engaged and HER1 Assist in building community capacity through sport, recreation, arts and culture. Resourceful Communities HER2 Provide strong advocacy for quality health, social services education and training services that focus on the needs of the community. HER3 Provide a contemporary and independent library service throughout the region and partner state government agencies to ensure services reflect agreed State standards. HER4 Provide and support a variety of events of a local, regional and national significance that contribute to the social, cultural and economic prosperity of the region. HER5 Deliver public health and safety risk management initiatives, education and healthy lifestyle programs that promote and support a safe and healthy living environment.
Operational Plan 2015/2016 | Appendix 1: Corporate Plan Strategy Codes 40 CORPORATE PLAN THEME CORPORATE PLAN STRATEGY 8.0 Organisational Sustainability OS1 Implement and maintain an integrated strategic planning framework across Council, which embeds performance, financial and asset management principles. OS2 Deliver quality customer focussed services while recognising the impact on the capacity of ratepayers to pay, and contain rate increases as much as practicable. OS3 Provide corporate business systems to drive effective and efficient delivery of services and infrastructure. OS4 Implement effective risk management and maintain contemporary business processes. OS5 Build effective leadership and management capabilities across the organisation, encourage teamwork and innovation. OS6 Provide a systematic approach to staff performance management and development to create a high performance culture that delivers Council’s goals and objectives.
Operational Plan 2015/2016 | 41 Financial Sustainability Strategy 2016 - 2025
Community Needs & Expectations
Financial Sustainability Strategy Affordable Sustainable Services Infrastructure CONTENTS
1 Executive Summary ...... 1 2 Strategy Background ...... 2 2.1 Scenic Rim Profile ...... 2 2.2 Scenic Rim Regional Council ...... 3 2.3 Link to Strategic Plans ...... 4 2.4 Background ...... 5 2.5 Factors Impacting Financial Sustainability ...... 11 3 Strategy Vision ...... 16 3.1 Objectives of the Strategy ...... 16 4 Strategy Outcomes and Performance Measures ...... 17 5 Abbreviations...... 22 6 Long Term Financial Forecast ...... 23 6.1 Foreward ...... 23 6.2 Assumptions ...... 23 6.3 Major Risks and Challenges ...... 25 6.4 Budgeted Financial Statements ...... 25 6.5 Sensitivity Analysis ...... 31 7 Supporting References ...... 33
Date Strategy was 27 April 2015 endorsed by ET Date Strategy was 24 June 2015 approved by Council
Strategy Review Date 30 June 2016 1 Executive Summary
The Financial Sustainability Strategy provides Council with an agreed roadmap for managing its financial resources and processes and is aligned with the objectives and priorities of the Corporate Plan. This strategy establishes the framework under which sound and sustainable financial decisions can be made, outlines the economic environment that Council operates in and identifies the major challenges to be addressed by the strategy.
Within the framework of this strategy, guidance is provided to support decision making with respect to capital and operating revenue and expenditure, asset and service management levels and procurement operations.
Council measures the effectiveness of its strategy through its long term financial forecast (LTFF) that is governed by a series of strategies, planned responses and associated financial stability and sustainability targets to measure performance. This strategy will be implemented though the alignment of Council’s LTFF to the strategy deliverables.
It must also be recognised that financial sustainability cannot occur without a strong underlying system of asset management. The alignment of asset management and financial sustainability outcomes will be critical to the success of this strategy as will the identification of appropriate service levels to support the community.
Financial sustainability is a legislative requirement of the Local Government Act 2009. A strategy is considered necessary to ensure that Council acts responsibly in the allocation of scarce resources and avoids a situation in which financial and infrastructure capital are not maintained at appropriate levels thereby leaving a liability for future generations.
Page 1 2 Strategy Background
2.1 Scenic Rim Profile
Scenic Rim Location The Scenic Rim region is located in South East Queensland approximately an hour south of the Brisbane CBD and 30 minutes west of the Gold Coast. Covering an area of 4,256km2 the region consists of a diverse range of landscapes including rich agricultural and grazing land, world heritage listed national parks, and urban and rural living environments.
The region has three main townships at Beaudesert, Boonah and Tamborine Mountain as well as many unique rural townships and villages.
Scenic Rim Demographic There were approximately 37,781 persons residing in the Scenic Rim region in 2012, representing an increase of 366 persons, or 1.0% from the level in 2011. Over the past five years, the population of the Scenic Rim region has grown at an average annual rate of 1.3%, slightly below the average for Queensland (1.8%).
Scenic Rim’s relatively low population density means that it has a lower rate base than city-based regions from which to raise revenues to maintain infrastructure and provide services.
Future population growth is likely to increase as a result of general Queensland population growth trends and development in the Bromelton State Development Area (BSDA) and is expected to remain relatively consistent with historical trends.
Page 2 Scenic Rim Economy Key drivers of the Scenic Rim economy are agriculture, construction and retail trade, which represented approximately 48% of total industry turnover in the region in 2010-11. Smaller, but important, industries operating in the region include manufacturing, wholesale trade, tourism, transport and professional services along with many others.
Council expects growth to occur in all industries into the future with emphasis on industrial development and residential housing construction.
Key issues impacting future economic development of the region include: Limited local employment opportunities; Lack of road and rail transport infrastructure to support the development of industry, particularly the BSDA; Lack of public transport options leaving people living in the region reliant on car transport; The Scenic Rim local government area has the lowest average wages in South East Queensland and is also lower than the Queensland average; Urban settlements are spread across a large and dispersed area and located close to city areas; this leads to people living in the region looking outside the region for more attractive shopping options and strong competition from these areas limits the ability for local business to grow and diversify.
2.2 Scenic Rim Regional Council
Scenic Rim Regional Council was formed in 2008 by the amalgamation of Beaudesert and Boonah Shire Councils, with the transfer of a substantial area to Logan City Council and a small area from Ipswich City Council. This ‘amalgamation’ was unique in that the population of the resulting council was significantly smaller than the larger of the former councils. This meant that the new council had to scale back its workforce. At the time it was identified that this was to be one of the most challenging amalgamations resulting from the local government reform in Queensland.
The resulting council was left with the responsibility of a large rural road network and the same level of shared services that were previously spread across a larger number of ratepayers. At the time high population growth was expected to occur by the State Government due to the development of the BSDA; however, actual population growth has been well below expectations due to the both global and national economic conditions resulting in the BSDA not progressing as forecast.
Council is governed by a popularly-elected Mayor and one Councillor for each of the region's six electoral divisions. Council employs approximately 355 full time equivalent employees who work within four directorates being: 1. Chief Executive Office 2. Finance and Information Services 3. Infrastructure Services 4. Regional Services
The main public services that Council provides include: Animal control and regulation Building and plumbing inspection services Cultural centres at Beaudesert and Boonah Customer service centres at Beaudesert, Boonah and Tamborine Mountain Disaster management functions Economic development and tourism Environmental programs and services Healthy and active programs
Page 3 Maintenance of community buildings including public halls and public toilets Maintenance of parks, reserves, sporting areas and cemeteries Planning and development services Public infrastructure maintenance and construction including roads, bridges footpaths and drainage Public libraries at Beaudesert, Boonah, Canungra, Tamborine Mountain and a Mobile Library Recreation and leisure services including the provision of public pools Regulatory control enforcement Street cleaning Waste management including domestic waste kerbside collection
The Financial Sustainability Strategy is influenced by the environment Council operates within:
External Environment Internal Environment National & Regional Local Government Council’s Forecast Demographics Industry & Market Drivers Needs & Wants Economic Growth Legislative Requirements Community Expectations Environmental Issues Government Policy Financial Capacity Population Growth Technology Trends Services & Service Levels Income Levels Industry Cost Drivers Infrastructure Requirements Unemployment Levels Quality of Assets & Resources Age Dispersion Capability of Organisation Diversity of Local Economy Risk Management Natural Disasters
2.3 Link to Strategic Plans
Council is guided by the Scenic Rim Community Plan 2011-2026 which provides a shared vision and plan for the Scenic Rim region's future. The Community Plan guides Council, other levels of government and the community on issues including the environment, economic development, social wellbeing, infrastructure and governance. Council then has developed the Scenic Rim Regional Council Corporate Plan 2013-2018 to articulate the approach that Council will use over the nominated timeframe to achieve the vision for the region. The Corporate Plan is structured into eight themes that are aligned with the seven themes of the Community Plan plus an additional theme of 'organisational sustainability' to provide a focal point on Council's performance and financial sustainability.
The Corporate Plan themes are: Spectacular scenery and healthy environment Sustainable and prosperous economy Open and responsive government Relaxed living and rural lifestyle Vibrant towns and villages Accessible and serviced regions Healthy, engaged and resourceful communities Organisational sustainability
Of particular relevance to the Financial Sustainability Strategy is the Corporate Plan theme Organisational Sustainability, which is shown as follows.
Page 4 Organisational Sustainability
Statement of Intent Council strives to be a high performing and financially sustainable organisation with robust governance structures based on the principles of risk management and continuous improvement. We offer a safe, positive work environment, value and reward our staff and are committed to providing ongoing development and training.
Strategies 1. Implement and maintain an integrated strategic planning framework across Council, which embeds performance, financial and asset management principles. 2. Deliver quality customer-focused services while recognising the impact on the capacity of ratepayers to pay, and contain rate increases as much as practicable. 3. Provide corporate business systems to drive effective and efficient delivery of services and infrastructure. 4. Implement effective risk management and maintain contemporary business processes. 5. Build effective leadership and management capabilities across the organisation, encourage teamwork and innovation. 6. Provide a systematic approach to staff performance management and development to create a high performance culture that delivers Council’s goals and objectives.
Integrated Planning & Reporting Framework Council’s integrated planning and reporting framework is shown below:
2.4 Background
The report commissioned by the Local Government Association of Queensland on local government financial sustainability Factors Impacting Local Government Financial Sustainability noted that there is a long history of poor financial sustainability outcomes in local government. In recent times, no less than thirteen state and national based inquiries into local government financial sustainability have been undertaken, with the general conclusions being that the local government sector is financially stressed, with anywhere from one third to 50% of local governments deemed to be unsustainable, weak or distressed.
Page 5 Council has had a strategy around financial sustainability since its formation in 2008 through application of the budget parameters contained in the LTFF. It has recently been identified that a separate document outlining Council’s strategy to ensure long-term financial sustainability was necessary to ensure that key outcomes were recognised and improvements could be made to the existing framework. While Council recognises that a significant amount of effort and discipline has gone into achieving the current state of financial sustainability, it is also cognisant that the information that it has available to it in order to evaluate financial sustainability is constantly evolving and that it is a process of continuous improvement.
Financial Sustainability Reviews In 2008 the Local Government Reform Commission stated in its report that Beaudesert Shire Council was likely to be rated at best as Weak in terms of financial sustainability and the new council would also likely be Weak. The former Boonah Shire Council was assessed by Queensland Treasury Corporation (QTC) as being Weak with a Developing (uncertain) outlook.
According to QTC Weak was defined as: A local government with an acceptable capacity to meet its financial commitments in the short to medium term and a limited capacity in the long term. It is unlikely to be able to manage unforseen financial shocks and any advertise changes in its business and in general economic conditions without the need for significant revenue or expense adjustments. It may experience difficulty in managing core business risks.
Upon formation in 2008, Council undertook an independent review of financial sustainability using Orion Consulting Network as part of the development of the 2009-10 budget and LTFF. Orion provided advice to Council on the indicators and assumptions in the LTFF to assist Council in setting its budget parameters.
This review demonstrated that, provided Council continued with the recommended budget parameters contained in the LTFF, the financial sustainability indicator targets recommended by QTC could be achieved from 2011-12 onwards.
Since that time Council has continued to keep financial sustainability as its focus. As a consequence, the Department of Local Government rated Council in a strong financial position for the 2010-11 financial year.
For the 2011-12 budget and LTFF Council again engaged Orion Consulting Network to provide advice to Council on the indicators and assumptions to be used and provide an opinion on whether the forecast was financially sustainable. Between these two reviews three significant things occurred:
1. Queensland Urban Utilities was formed on 1 July 2010 and took over the Council’s water and wastewater distribution and retail responsibilities; 2. Substantial flooding occurred through December 2010 and January 2011 triggering the National Disaster Relief and Recovery Arrangements (NDRRA), which resulted in restoration works identified to be carried out over the following two years; and 3. Council adopted a new organisational structure as part of an organisational review.
The review found that Council had remained within the recommended budget parameters and was achieving the financial sustainability indicator targets recommended by QTC from 2011-12 onwards.
Further substantial flooding occurring after 2010-11 in 2012 and 2013 also triggered NDRRA and has resulted in a total flood restoration program of over $100 million being spent in the Scenic Rim region.
Page 6 Council has undertaken a further two independent financial sustainability reviews with the latest conducted by QTC in December 2013. This review rated Council as Sound with a Neutral outlook. Based on the QTC’s definitions, this means that Council has adequate capacity to meet its financial commitments in the short, medium and long-term and there are no known foreseeable events that would have a direct impact on Council’s capacity to meet its financial commitments.
Long Term Financial Forecast Council is required by Section 104 of the Local Government Act 2009 (the Act) and Section 169 of the Local Government Regulation 2012 (the Regulation) to prepare a LTFF. The LTFF is a ten year financial forecast which includes income, expenditure, related cash flow projections, liabilities and equity and the value of assets.
The primary purpose of the LTFF is to guide and inform decision-making. The LTFF is reviewed quarterly following revised budget forecasts and is used to support resource allocation decision making. The LTFF contains details of the assumptions used to estimate growth rates, price increases, general rates and charges increases, and also provides the financial outputs and financial sustainability measures for each of the ten years.
The LTFF establishes the framework for sound financial decisions, as well as a financial modelling tool used to: Assess revenue for building capacity to resource implementation of the Corporate Plan; Establish Council’s transparency and accountability to the community in managing the Council’s finances; Provide an opportunity for early identification of financial issues and any likely impacts in the longer term; and Confirm that the Council can remain financially sustainable in the longer term.
Financial Sustainability Financial sustainability is a core requirement of local government in Queensland. Section 104 of the Act contains the following definition: A local government is financially sustainable if the local government is able to maintain its financial capital and infrastructure capital over the long term.
Both the Act and the Regulation contain numerous references to financial sustainability.
Financial sustainability for local governments is critical as they are responsible for directly providing the community with a wide range of public services and community infrastructure and facilities. This requires local governments to hold and maintain a significant base of infrastructure assets, which necessitates not only substantial initial investments but also continued expenditure to maintain and renew assets over the course of their respective useful lives.
The concept of financial sustainability not only encompasses the idea of Council ensuring that it adequately maintains financial and infrastructure capital but also that, in doing so, it does not require significant future adjustments to revenue and/or expenditure policies. The LTFF is the tool Council uses to determine whether significant future adjustments are required and this allows Council to take mitigating action beforehand so that it can avoid such situations. Of course, this is only successful where unexpected events do not occur.
Financial sustainability is a strategy and ratios are used as point-in-time measurements to assess the outcomes of the strategy. The Department of Infrastructure, Local Government and Planning (DILGP) has developed financial sustainability indicators to assist in the assessment of the long- term financial sustainability of councils.
Page 7 Financial Sustainability Indicators Section 169(5) of the Regulation and the Financial Management (Sustainability) Guideline 2013 contain the following measures of financial sustainability: a) Asset Sustainability Ratio b) Net Financial Liabilities Ratio c) Operating Surplus Ratio
In accordance with legislative requirements, the above measures of financial sustainability must be reported as part of the LTFF and the annual financial statements. The indicators reported with the annual financial statements are reviewed and reported on by the Queensland Audit Office and Council receives a sustainability risk rating that is reported to the Queensland Parliament based on these results.
The Queensland Audit Office’s report to State Parliament on the outcomes of local government audits for 2012-13 rated Scenic Rim Regional Council as having a low risk of financial sustainability concerns.
Council’s actual and forecast performance against the key financial sustainability indicators is outlined on the following pages.
Asset Sustainability Ratio
Definition An approximation of the extent to which the infrastructure assets managed by Council are being replaced as they reach the end of their useful lives How is it Capital expenditure on replacement of assets (renewals) divided by depreciation calculated? expenditure Why is it Assists in identifying Council’s asset base consumption and renewal levels and important? capacity to fund the level of investment needed over the long-term Target Greater than 90% per annum (on average over the long-term)
600% Council’s asset sustainability ratio for 500% 2013-14 was 440% and is forecast to 400% remain above 90% over the next ten 300% years. This means that Council is likely to be 200% sufficiently maintaining, replacing 100% or renewing existing 0% infrastructure assets as they reach the end of their useful life. While Council’s asset sustainability ratio for Asset Sustainability Ratio Minimum Target 2012-13, 2013-14 and 2014-15 appear high compared to other years this is due to the impact of the NDRRA flood restoration program on capital renewal expenditure.
Page 8 Net Financial Liabilities Ratio
Definition An indicator of the extent to which the net financial liabilities of Council can be serviced by its operating revenues How is it Total liabilities less current assets divided by total operating revenue (excluding calculated? capital items) Why is it Assists in identifying Council’s financial capacity and the ability to fund ongoing important? operations over the long-term Target Less than 60% per annum (on average over the long-term)
60.0% Council’s net financial liabilities ratio for 2013-14 was 5.4% 40.0% and is forecast to remain less than 60% over the next ten 20.0% years. This means that Council has the capacity to 0.0% comfortably fund its liabilities. A negative ‐20.0% indicator means that current assets exceed total liabilities and that ‐40.0% Council has the capacity to increase Net Financial Liabilities Ratio Maximum Target loan borrowings if required. Operating Surplus Ratio
Definition An indicator of the extent to which revenue raised covers operational expenses only or are available for capital funding purposes or other purposes How is it Net result (excluding capital items) divided by total operating revenue (excluding calculated? capital items) Why is it Assists in identifying Council’s financial capacity and the ability to fund ongoing important? operations over the long-term Target Between 0% and 10% per annum (on average over the long-term)
10.0% Council’s operating surplus ratio for 2013- 8.0% 14 was (4.1%) and is forecast to remain 6.0% between 0% and 10% over the next ten 4.0% years. This means that 2.0% Council is expecting to generate healthy 0.0% levels of revenues that can be used to fund ‐2.0% proposed capital ‐4.0% expenditure and debt repayments, and is ‐6.0% less likely to compromise the levels Operating Surplus Ratio Lower Target Upper Target of service expected by ratepayers.
Page 9 Long Term Asset Management Plan Council is required by Section 167 of the Regulation to prepare a long term asset management plan for a period of at least ten years, which must: a) provide for strategies to ensure the sustainable management of the assets mentioned in the local government’s asset register and the infrastructure of the local government; b) state the estimated capital expenditure for renewing, upgrading and extending the assets for the period covered by the plan; and c) be part of, and consistent with, the LTFF.
Local Government Infrastructure Plan Council is required by the Sustainable Planning (Infrastructure Charges) and Other Legislation Amendment Act 2014 to prepare a Local Government Infrastructure Plan (LGIP). An LGIP is that part of the planning scheme and identifies Council's plans for trunk infrastructure necessary to service urban development at the desired standard of service in a coordinated, efficient and financially sustainable manner.
The purpose of an LGIP is to: integrate infrastructure planning with the land use planning identified in the planning scheme; provide transparency regarding a local government's intentions for the provision of trunk infrastructure; enable a local government to estimate the cost of infrastructure provision to assist its long term financial planning; ensure that trunk infrastructure is planned and provided in an efficient and orderly manner; and provide a basis for the imposition of conditions about infrastructure on development approvals.
Asset Management Council has a comprehensive system and strong culture of asset management embedded into the organisation through the following documents, structures and systems.
Documentation Asset Management Policy Asset Management Strategy Asset Management Plans Asset Management Improvement Plan Ten Year Capital Expenditure Forecasts
Structures Asset Management Steering Committee Asset Management Working Group Asset Management Section
Systems Capital Expenditure Prioritisation Models Alignment of asset management system with international standard ISO 55001:2014, Asset Management - Management systems: Requirements Regular asset condition assessments and valuations
A strong asset management system is essential for financial sustainability. A weak system of asset management will not produce outputs that Council can have confidence in. These outputs are used to evaluate the success of the LTFF in funding asset management plan (AMP) funding requirements. If this was not able to occur with a reasonable level of confidence then Council would not be able to evaluate its financial sustainability.
Page 10 2.5 Factors Impacting Financial Sustainability
Factor Implications/ Opportunities for Council Being a Public goods are assets and services that one individual can consume without provider of reducing its availability to another individual and from which no one is excluded. public goods The majority of Council’s services fall into the category of public goods including roads, bridges, footpaths, public parks and libraries. In addition, some services cannot be operated on a full user pays service because the resulting fees would be too high and people would not be able to afford them. Public facilities such as swimming pools and community services such as leisure and sporting programs are run on the basis that they are partly subsidised by rates and charges.
Council must raise rates from the community to cover the cost of public goods therefore rates are a tax similar to goods and services tax and income tax. However, this concept is not well understood by the community who still view rates as a ‘fee for service’ and not a tax.
This creates challenges for Council as the community has high expectations about what they should receive in return for paying rates and does not understand why Council must increase rates in order to provide increased funding for public goods each year. Borrowings It has been widely recognised that the Local Government sector has traditionally had low levels of borrowings. In recent years there have been some major changes in the level of borrowings that Local Government is responsible for and borrowing levels are greater than they have ever been. This is largely due to the change in perception around borrowings whereby traditionally borrowings have been viewed negatively by councils themselves and the general public.
A working paper prepared by John Comrie for the Australian Centre of Excellence for Local Government suggests that borrowings should be considered where there are significant asset renewal backlogs. The cost of using borrowings in such instances should be considered against the eventual cost of allowing assets to deteriorate without intervention and the likely impacts to the community and local economy by allowing this to occur.
However, while there are strong arguments to be made for using borrowings, decisions regarding using borrowings as a source of funding must not be made lightly. Borrowings will cost more in the long term and the community will be paying for the asset over a long period of time. Interest must also be repaid and unfavourable movements in interest rates can have detrimental impacts on the budget. Council must also ensure that the long term benefits to be gained from using borrowings justify the overall cost.
The net financial liabilities ratio developed by the DILGP suggests a target of less than 60% per annum is acceptable; however, this is a one size fits all approach. Council should be mindful of issues such as what financial capital is needed to fund infrastructure for future growth forecasts and what impacts would be felt from unfavourable movements in interest rates before determining what is an appropriate level of borrowings in the LTFF.
Page 11 Factor Implications/ Opportunities for Council Capping of Changes introduced by the Queensland Government to cap infrastructure infrastructure charges has reduced the ability for Local Government to obtain the required charges financial capital to fund infrastructure associated with development from developers. In addition to this, the introduction of fair value charges has further reduced this capacity.
While the implementation of fair value charges is not compulsory for Local Government both the Queensland and Commonwealth Governments have made this a requirement for Local Government to be eligible for major grant funding opportunities. Changes in Council must operate in accordance with legislation and is governed by a legislation number of Acts, Regulations and Guidelines.
Changes in legislation can have significant impacts on Council due to the resources required to implement changes resulting in additional costs. Often changes are for the better, however, will always involve time and resources. This can create challenges for Council in trying to balance the requirement to amend or provide new services on top of existing services. Cost shifting From time to time the Commonwealth and Queensland Governments amend from other their responsibilities and this can result in the cost of those responsibilities levels of shifting to other levels of government including Local Government. Often while government the responsibility is shifted to another level of government no corresponding funding is provided. A recent example is the transfer of the responsibility for monitoring fruit bat activity from the Queensland Government to Local Government. Implementing activities to deter fruit bats away from urban living environments has resulted in significant increased costs to Council. Disaster Across Australia Local Government plays a crucial role in disaster management management and in Queensland Local Government have significant responsibilities under the Disaster Management Act 2003 in coordinating disaster management resources during flood and storm events, which are the most common disaster events to occur in Queensland.
The cost of these responsibilities is significant. Many councils employ dedicated disaster management personnel and must also provide coordination centre facilities. Access to trained personnel and the necessary infrastructure must occur year round regardless of whether a disaster event occurs or not. No external funding is made available to cover these activities.
It should be noted that the cost of disaster management through the above activities is in addition to the financial support that Local Government is required to provide to the State Emergency Service and Rural Fire Service. Duplication of Having a population base spread over a large area means that Council is in the services and position of providing a number of smaller services spread across the region assets rather than one larger centralised service. This is the case in the provision of customer service centres, libraries, swimming pools and waste disposal facilities. Often these services have significant fixed overhead costs regardless of the level of utilisation.
The issue for Council is that it incurs a much higher cost of service provision per head of population than urban councils. It cannot therefore offer the same level of service provision as urban councils as the cost of doing so would be unaffordable.
Page 12 Factor Implications/ Opportunities for Council Inability to fund Council’s physical non-current assets have a total value of $803 million. Over asset 90% of Council’s assets are referred to as infrastructure assets. These are maintenance assets with long useful lives whose value is measured at replacement cost. and renewal The majority of Council’s assets cannot be sold to generate funding as they are used to provide services or are public goods.
The challenge for Council is that these assets must be maintained at a certain level in order to provide a satisfactory level of service provision to the community. Council must allocate its scarce resources over the vast network of assets that it is responsible for in order to achieve this in all areas.
Council measures how well it is doing this by evaluating the AMP outcomes for each major asset class. AMPs can tell Council whether the level of resources allocated to assets is keeping them at the level required to achieve satisfactory service provision.
Where AMPs produce unsatisfactory outcomes i.e. they identify significant funding gaps between what is needed and what is made available then Council must evaluate what options it has available to address the funding gap. This can include increasing revenues, changing the level of service provided, reprioritising available funding and, in some circumstances, providing additional funding through borrowings.
Recent natural disasters in the form of repeated flooding in the Scenic Rim region have increased this challenge. While funding has been made available through the NDRRA to fix the worst affected areas of Council’s road network much of the remainder of the network has also experienced repeated inundation, which has resulted in overall deterioration of the road network. The effect on the network is still being measured and NDRRA flood restoration is still being undertaken. However, any detrimental impacts will be evident in future AMPs prepared for roads.
The inability to source appropriate levels of funding for effective infrastructure renewal and replacement is one of the top two issues identified by Local Government in Queensland and is probably the most critical issue facing Local Government across Australia. It is generally acknowledged that assistance is unlikely to be received from the Queensland or Commonwealth Governments in addressing this challenge. Therefore, Council must have a focus on asset renewal and replacement and this should represent a higher priority than the creation of new assets where decisions regarding the scarce allocation of resources have to be made. Limited Council is classified in the rural/regional council category and this category must opportunities to maintain a high rating effort compared to other categories of councils in order to increase maintain service levels. This is in addition to the challenges that the revenue rural/regional category has of low average household incomes and being the highest out of all categories to experience mortgage and rental stress.
Council is predominantly reliant on rates and charges revenue for funding and this presents challenges in balancing the ability for ratepayers to absorb rate increases against the need for funding to maintain service levels. Council’s rate base is also predominantly residential and this limits Council’s ability to diversify the rate base and achieve rate revenue growth.
Page 13 Factor Implications/ Opportunities for Council Low population Urban settlements are spread across a large and dispersed area creating density/large challenges in relation to service delivery. Council’s population spread is approx. service area 9 persons per km2. Neighbouring urban Local Government areas have population spreads in excess of 300 persons per km2. A more intensive population spread makes it easier to raise required funding from the rate base and also diversify funding sources. Natural Disaster The Productivity Commission have recommended significant changes to the Relief and share of disaster management funding required from the Commonwealth, Recovery Queensland and Local Governments. These recommendations would have Funding significant detrimental financial impacts on Council if implemented and Arrangements potentially result in unacceptable asset management outcomes. The estimated cost of damage to Council’s assets from natural disasters has been approx. 92% of general rate revenue from 2009 to 2014. Pressure on A significant issue for Local Governments is the reduction in funding sources it level of funding receives other than from rates and utility charges. This has occurred for a range required from of reasons but key reasons for Scenic Rim include the downturn in the economy rates that affected a number of different revenue sources and the reduction of government grants, which is an issue for all Local Government and includes the freezing of financial assistance grants at current levels. As a result, many of Council's revenue sources have remained at static levels or even reduced since it formed in 2008. This places an unsustainable burden on the level of funding required to be generated from rates and utility charges, which must be generated through effecting rate increases on the community. Reduced In the 2013-14 budget Council had grant funding of over $1 million reduced due funding from to a reduction in the general purpose financial assistance grant allocation and other levels of the withdrawal or reduction of capital grants and subsides by the Queensland government Government. This has meant Council has had to replace this funding either through alternative sources of revenues such as rates and charges or reductions in expenditure.
Council’s analysis on the general purpose financial assistance grant allocation has identified that it receives far less per capita than similarly classed councils such as Lockyer Valley Regional Council and Somerset Regional Council. The higher level of funding received by other councils enables them to provide a higher level of subsidy per ratepayer. Council has pushed for a change in the grant allocation methodology to occur in order to address this inequity.
In 2014-15 the Commonwealth Government announced that it was freezing the level of financial assistance grant funding for a period of three years. This decision is estimated to reduce grant funding to Local Government by $925 million by 2017-18. Vertical fiscal This refers to the situation where revenue collection at different levels of imbalance Government does not match expenditure requirements.
In 2011-12 the share of taxation revenue by sphere of government was broken down as follows: Federal 81.5% State 15.3% Local 3.4%
Local government only collects 3.4% of all government taxes but is responsible for 36% of non-financial assets held by all spheres of government.
Page 14 Factor Implications/ Opportunities for Council Horizontal fiscal This refers to different abilities to raise revenue and different expenditure imbalance requirements at the same level of government. Local Governments have different capacities to raise revenues as well as expenditure needs. Whilst this is partly addressed through financial assistance grant allocation methodologies, the maintenance of these is outside the control of Local Government.
Page 15 3 Strategy Vision
Consistent with Council’s theme of Organisational Sustainability contained in the Corporate Plan, the vision of the financial sustainability strategy is:
To ensure Scenic Rim Regional Council remains financially sustainable in the short, medium, and long term.
3.1 Objectives of the Strategy
The objectives are to: Maintain key financial sustainability indicator results in line with DILGP targets; Provide sufficient funding to meet AMP requirements over the long term where agreed and affordable service levels are identified; Provide sufficient funding to meet capital expenditure requirements identified in the LGIP to support future development and population growth; Ensure adequate funding is available to provide efficient and effective services to the community; Ensure key financial risks have been considered and are reflected in financial forecasts; Achieve and maintain fair and equitable revenue structures that consider the cost of providing services and the level of subsidy provided from rates; Address key inter-generational infrastructure and service issues, which allows any significant financial burden to be spread over a number of years and not impact adversely on current or future ratepayers. Ensure prudent management of investments and loan borrowings; Ensure that Council considers the full lifecycle cost of all proposals prior to making commitments for expenditure; and Ensure robust systems remain in place around the development and management of budgets and the LTFF.
Page 16 4 Strategy Outcomes and Performance Measures
Strategy Long-term performance against key financial sustainability indicators maintained Statement: in LTFF Outcome: Define a set of key financial sustainability indicators, identify targets for each indicator and maintain forecast financial performance in accordance with identified targets Performance Long-term performance in LTFF to remain in accordance with identified targets Measure: Key Actions to Achieve Strategy: Maintain key financial sustainability Operating surplus ratio Between 0% and 10% indicator results in line with DILGP Net financial liabilities ratio Less than 60% targets Asset sustainability ratio Greater than 90% Maintain other financial sustainability Cash holdings ratio Greater than 3 months indicator results in line with Council Current ratio Greater than 1.1 targets Debt servicing ratio Less than 10% Quarterly budget reviews to remain Capture quarterly budget reviews in the LTFF and ensure consistent with financial sustainability financial sustainability ratios remain in accordance with indicator results in the LTFF LTFF results Refinement of financial sustainability Review of financial sustainability indicators and targets indicators and targets annually as part of development of budget and LTFF
Strategy Funding requirements identified in AMPs are provided for in the LTFF at agreed Statement: and affordable levels of service Outcome: Community assets are maintained and remain fit for purpose with current and future generations benefitting from effective financial and asset management Performance Provisions for renewal capital expenditure in LTFF consistent with AMP funding Measure: requirements Key Actions to Achieve Strategy: Infrastructure capital works programs Infrastructure ten year capital works programs are are consistent with AMPs developed based on the capital works prioritisation model and are consistent with AMP forecasts Asset management improvement plan Progress the deliverables contained in the asset will improve level of confidence in management improvement plan AMPs Asset management steering Asset management steering committee to play a key role committee to play key role in long- in review of AMP assumptions including service levels to term alignment of AMP forecasts and ensure reasonable level of confidence in AMP forecasts LTFF
Page 17 Strategy Provision for developer contributions and capital expenditure in LTFF is Statement: consistent with LGIP forecasts Outcome: Ensure Council is able to afford capital expenditure associated with development and population growth Performance Provision for developer contributions and capital expenditure in LTFF consistent Measure: with LGIP funding requirements over the long-term Key Actions to Achieve Strategy: Developer contributions accurately Process developed for estimating developer contributions forecast over the long-term in accordance with LGIP forecasts and incorporated into 2016-17 LTFF Provision for capital expenditure in Process developed for estimating capital expenditure in LTFF consistent with LGIP accordance with LGIP forecasts and incorporated into 2016-17 LTFF Developer contributions linked to Process developed for linking funding provided by development funded developer contributions to the associated infrastructure expenditure and incorporated into 2016-17 LTFF Developer contributed assets Process developed for estimating value of developer recognised in LTFF contributed assets and associated ongoing maintenance costs over the long-term and incorporated into 2016-17 LTFF Sustainable planning and Council’s planning scheme reflects sustainable planning development practices ensuring land and infrastructure are used as efficiently as possible
Strategy Service levels funded by the LTFF remain sustainable and affordable Statement: Outcome: Planning is integrated and effective and there is a clear linkage between community expectations and service delivery within affordable limits Performance Existing and forecast service levels can be funded in the LTFF without requiring Measure: significant increases in funding Key Actions to Achieve Strategy: Service levels remain efficient and Continued assessment of core business and service level effective reviews through Executive Strategy Workshops Increases to existing services or new All discretionary operational projects require a business services must undergo a formal case and must undergo a prioritisation peer review approval process through development of the annual budget Efficient staffing levels are maintained Any vacant position is evaluated on the basis of need and new staff positions must undergo a formal approval process Encourage business innovation that Business cases that demonstrate a reasonable payback produces efficiency and productivity period or produce immediate efficiencies are given priority improvements ahead of other discretionary projects Develop partnerships with business Maintain and develop partnerships that contribute to the and neighbouring councils effectiveness and efficiency of Council’s operations
Page 18 Strategy Financial risks are appropriately managed and their potential effect on the LTFF Statement: is considered Outcome: Financial risks remain within acceptable tolerance thresholds Performance Financial risks are identified and monitored and control methods remain effective Measure: Key Actions to Achieve Strategy: Strategic financial risks are Reviews of strategic risks, including financial risks, are recognised and appropriate control conducted by Council’s Risk Reference Group along with methods are in place an assessment of the effectiveness of existing controls and identification of further treatment details The LTFF is reviewed to determine if Second year of LTFF is used as basis for next year draft forecasts remain consistent with budget and performance against financial sustainability actual performance ratios is compared to previous forecast Refinement of LTFF assumptions Ongoing refinement of LTFF assumptions to be undertaken through development of annual budget Impact of changes in assumptions to LTFF sensitivity analysis to be developed based on LTFF results are considered changes in key assumptions Ensure Council remains adequately Council reviews insurance requirements annually and insured manages insurance in accordance with the Insurance Policies and Claims Policy
Strategy Revenue structures remain fair and equitable and consider the cost of providing Statement: services and the level of subsidy provided from rates Outcome: The level of rates, fees and charges remains affordable yet provides sufficient funding to deliver services identified in the LTFF Performance Rates, fees and charges increases are sustainable and reflect an appropriate Measure: level of subsidy provided from rates Key Actions to Achieve Strategy: Ensure the level of rates and charges Continuing with rating reform including applying user pays set in the Revenue Statement reflects principles where it is appropriate to do so through the capacity of ratepayers to pay development of the annual budget Ensure user pays fees and charges Fees and charges reviewed annually through reflect an appropriate level of subsidy development of the annual budget and activities subject to provided from rates national competition policy reviewed to ensure appropriate level of cost recovery Continue to identify sources of Continue to undertake recoverable works and explore revenue other than rates and charges business opportunities that are likely to produce positive returns to Council Opportunities to dispose of surplus Strategic reviews of assets continue to occur with assets are identified and investigated opportunities to dispose of surplus assets identified and recommended for consideration Continue to lobby for change in Continue to analyse general purpose financial assistance financial assistance grant allocation grant allocation and lobby for change in grant allocation (general purpose) methodology
Page 19 Strategy Borrowings are appropriately managed and only undertaken where it can be Statement: clearly demonstrated that it is an appropriate source of funding and financial sustainability indicators remain within identified targets Outcome: Council will only borrow to finance future capital works based on intergenerational, risk management or accelerated infrastructure needs and not for recurrent or operational expenditure, and on terms appropriate to the reasonably expected life of the relevant capital assets Performance Borrowings are only undertaken to finance capital works that provide long-term Measure: community benefits Key Actions to Achieve Strategy: New borrowings are only undertaken Borrowings only identified as a source of funding for where it is an appropriate source of capital works that provide long-term community benefits funding and after all other sources of funding have been considered New borrowings are only undertaken Actual borrowings are subject to the maintenance of where financial sustainability approved financial ratios and targets indicators remain within identified targets New borrowings undertaken must be All new borrowings must be undertaken in accordance in accordance with Council Policy with Council’s Debt Policy Exposure to interest rates is Scenario analysis is performed on the LTFF on effectively managed unfavourable movements in interest rates and any negative impacts managed appropriately
Strategy Cash and investments are managed effectively and surplus funds are invested in Statement: accordance with liquidity requirements Outcome: Council maintains sufficient cash reserves to meet its short-term working capital requirements and investment returns are optimised Performance Investments are managed in accordance with Council Policy and an appropriate Measure: level of liquidity is maintained to support Council’s operations Key Actions to Achieve Strategy: Management of forecast cash flows Daily cash flow analysis is performed and timing of ensuring sufficient liquidity to support investments is in accordance with working capital Council's operations requirements Investments are managed in Funds surplus to requirement are invested in accordance accordance with Council Policy with Council’s Investment Policy and compliance with the Policy is monitored through monthly reporting to Council Creditors are managed to optimise Creditor payments are made in accordance with Council’s cash flows standard payment terms or contract terms Debtors are managed to optimise Rate notices and invoices are issued in a timely manner cash flows and enforcement of recovery actions occurs in line with Council’s Revenue Policy
Page 20 Strategy New capital projects are only undertaken where consideration has been given to Statement: the full lifecycle cost of the proposal Outcome: Council will only commit to new capital projects where the full lifecycle cost has been considered, including the future servicing and maintenance costs, and any impact on the rate increase required to provide a source of ongoing funding Performance New capital projects are only undertaken if it can be shown they will not adversely Measure: affect Council’s financially sustainability Key Actions to Achieve Strategy: New capital projects only undertaken The financial analysis for major new capital projects after consideration of full lifecycle (+$100k) must be prepared using a whole of life costing costs has occurred tool and LTFF scenario analysis before endorsement from Council can occur All projects are managed using Council has an endorsed project management Council’s project management methodology, which must be used in the management of framework all projects
Strategy Statement: Budgets are managed effectively and actual performance to budget is closely monitored Outcome: A strong budget management culture is established and maintained Performance Measure: Budget variances remain within identified tolerances and management action is undertaken where this does not occur Key Actions to Achieve Strategy: Actual performance to budget is Monthly budget packs are used to identify budget closely monitored variances that have exceeded identified tolerances and capture explanations provided by management where this occurs Report actual performance against A monthly financial report containing budget variance budget to Executive Team and analysis is prepared and reported to the Executive Team Council and Council’s Finance Committee Quarterly budget reviews are A minimum of four budget reviews occur per year and undertaken budget review adjustments must be in accordance with Council’s Budget Review Policy Internal controls are maintained for Financial delegations are managed using the Technology financial delegations and purchasing One system and purchasing must be performed in accordance with Council’s Purchasing Policy
Page 21 Strategy Financial asset systems support core asset management outcomes Statement: Outcome: Financial asset outcomes align with asset management outcomes Performance Financial asset data is consistent with asset management data and systems used Measure: by both areas complement each other Key Actions to Achieve Strategy: Capital expenditure is captured in the Capital expenditure is separately identified using Project accounting system Ledgers in the Technology One system and separately identified for budgeting purposes Ensure expenditure meets the criteria Expenditure must meet the definition provided for in for capital expenditure before Council’s Recognition of Non Current Assets Policy before capitalising being capitalised Consumption-based depreciation Council uses a consumption-based depreciation methodology methodology based on measuring the level of the asset’s remaining service potential External asset valuations undertaken Undertake external asset valuations every five years or in accordance with accounting sooner if required by the accounting standards standards Asset valuation assumptions Asset valuation assumptions are reviewed annually in reviewed annually consultation with asset management and infrastructure staff Ensure financial asset records align Wherever possible, finance and asset management use with asset management records the same asset data sets and differences are identified and investigated in order to improve consistency
Key actions to be progressed during the next financial year can be found in Council’s Operational Plan and are reported in Council’s Annual Report.
5 Abbreviations
Act Local Government Act 2009 AMP Asset Management Plan BSDA Bromelton State Development Area DILGP Department of Infrastructure, Local Government and Planning LGIP Local Government Infrastructure Plan LTFF Long Tem Financial Forecast NDRRA Natural Disaster Relief & Recovery Arrangements PPE Property, Plant & Equipment QTC Queensland Treasury Corporation Regulation Local Government Regulation 2012
Page 22 6 Long Term Financial Forecast
6.1 Foreward
The LTFF links directly to Council’s Community and Corporate Plans and sets the framework to provide cost effective services within available resources for the duration of the forecast.
Section 171 of the Regulation requires councils to prepare a LTFF covering a period of at least ten years. The LTFF is essential for: Demonstrating Council’s financial sustainability as required by section 104(2) of the Act; and Council’s system of financial management as required by section 104(5) of the Act.
The Scenic Rim Regional Council LTFF covers ten years from 2015-16 to 2024-25.
The overall objective of Council’s LTFF is to maintain current service levels, identify a capital works program that meets the asset renewal requirements contained in Council’s AMPs and to achieve a financially sustainable position. Based on the outcome of the LTFF, it can be seen that Scenic Rim Regional Council is in a satisfactory position to sustain its operations over the life of the LTFF.
6.2 Assumptions
As with all forecasts, it must be acknowledged that things change over time and that long term forecasts are useful as a guidance tool which can identify financial issues in advance and enable a strategy or plan to be developed to deal with them. This LTFF has been prepared using a number of assumptions, which are applicable from 2016-17 onwards.
The LTFF has been developed with the overriding assumption that council will prioritise projects in accordance with available funding and will continue to maintain its current service levels with no reductions in staff numbers.
The LTFF also includes the following specific assumptions:
General Assumptions
Item Assumption Comment CPI 2.5% The long term average CPI for Brisbane is 2.5%
New Initiatives New initiatives are new projects or programs or increases in service level that are deliberately segregated from the general budget so that their effect on the budget can be separately evaluated. 2015-16 ongoing new initiatives are automatically included in the forecast and the value of ‘one off’ new initiatives in 2015-16 is assumed to recur annually.
Page 23 Recurrent Revenue Assumptions
Item Assumption Comment Rates & Utility 3.5% Prior to setting the budget each year Council will reconsider the Charges rate increase in line with available funding opportunities and funding requirements 1.3% growth Based on an analysis of population growth converted into an estimated rates growth increase
Fees & 3.9% Fees and charges are usually set at a similar level to rates & Charges 1.3% growth utility charges Interest N/A Recalculated based on forecast cash levels Received Sales of CPI Revenue assumed to increase in accordance with CPI in line Contract & with associated expenditure Recoverable 0.65% growth Set at half rates growth in line with associated expenditure Works Share of Profit N/A Share of profits from Queensland Urban Utilities included as per from QUU Corporate Plan Associate Other CPI Other revenues consist of items such as rents and leases that Revenue 1.3% growth generally increase in line with CPI Grants & 0% The main source of recurrent grants is the financial assistance Subsidies – grant and this has been frozen at current levels by the Recurrent Commonwealth Government
Recurrent Expenditure Assumptions
Item Assumption Comment Employee 2% Based on estimated certified agreement increases and Expenses 0.65% growth increment increases Materials & 2% Materials, services and contracts generally increase in line with Services CPI; an efficiency gain of 0.5% per annum has been assumed 0.65% growth The allowance for growth is to offset the increase in service level costs associated with rates growth and is set at half of rates growth Finance Costs N/A Included as per loan borrowings schedule Depreciation & 6% Depreciation is varied in proportion to the increase in fixed asset Amortisation values
Capital Assumptions
Item Assumption Grants & Included as per the Ten Year Capital Works Program; assumed to increase by Contributions 2% per annum in line with the index applied to capital expenditure – Capital Capital Included as per the Ten Year Capital Works Program; capital works expenditure Expenditure is assumed to increase by 2% per annum Borrowings Repayments on the present loan are forecast in accordance with the borrowings schedule; new borrowings are assumed to be financed by 20 year loans at the current indicative borrowing rate of 4.7% Fixed Asset The value of fixed assets is based on the current value of PPE adjusted for the Values forecast level of purchases and disposals and adjusted by a revaluation index Reserves The asset revaluation reserve is adjusted in line with fixed asset values
Page 24 6.3 Major Risks and Challenges
Scenic Rim Regional Council has developed a comprehensive risk management framework. The preparation of a LTFF assists Council in evaluating the impact that future decisions may have on its budget and avoid making decisions which may have long term negative impacts. This is particularly important when evaluating the impact of large projects involving borrowings and ongoing operating costs. In addition, the LTFF also allows Council to see how it may defer or bring forward projects to best suit its cash flow projections and thus smooth our planned expenditure.
Council has identified the following strategic risks: CF2 Adoption of unrealistic corporate objectives that are beyond the financial resources of the organisation to deliver. CF3 Utilisation of deficient or substandard financial management practices and subsequent decision making processes. CF4 Ineffective, inefficient or poorly integrated strategic planning and monitoring.
As with many local governments, a major challenge for Council is the management of ageing assets in need of renewal and replacement. Infrastructure assets such as roads, bridges, pathways, kerbs, stormwater drains and public buildings present particular challenges as their condition and longevity can be difficult to determine. The creation of new assets also presents challenges in terms of funding for initial construction and ongoing service costs.
6.4 Budgeted Financial Statements
Budgeted Statement of Comprehensive Income This statement outlines: All sources of Council’s income (revenue) All recurrent expenditure. These expenses relate to operations and do not include capital expenditure although depreciation of assets is included.
The Net Result for the year is a measure of Council’s financial performance. This figure is determined by deducting total recurrent expenditure from total income.
Budgeted Statement of Financial Position This statement outlines what Council owns (assets) and what it owes (liabilities) at a point in time.
Council’s net worth is determined by deducting total liabilities from total assets – the larger the net equity, the stronger the financial position.
Budgeted Statement of Cash Flows This statement summarises the actual flows of cash for a period and explains the change in the cash balance held from the start of the period through to the end of the reporting period. This shows where Council received its cash from and then what it spent it on.
Budgeted Statement of Changes in Equity This statement summarises the change in Council’s real worth throughout the financial year. Council’s net worth can change as a result of: The net result as recorded in the Statement of Comprehensive Income; or An increase or decrease in the net value of non-current assets resulting from a revaluation of those assets.
Page 25 Financial Sustainability Indicators
Revised Budget Projected Years Budget 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Indicators per S169(5) of the Local Government Regulation 2012 Operating Surplus Ratio 5.7% 5.3% 6.3% 7.0% 7.9% 8.8% 9.4% 9.8% 10.0% 10.0% 10.0% Target: Between 0% and 10% Calculation: (Net result (excluding capital items) / recurrent revenue) Net Financial Liabilities Ratio 22.4% 23.3% 26.8% 24.9% 22.1% 22.3% 17.6% 12.8% 8.3% 3.3% 2.9% Target: Less than 60% Calculation: ((Total liabilities less current assets) / recurrent revenue) Asset Sustainability Ratio 435.7% 130.3% 128.3% 116.8% 114.1% 115.9% 117.0% 119.6% 124.7% 120.6% 116.2% Target: Greater than 90% Calculation: (Capital renewals on infrastructure assets / infrastructure depreciation)
Additional indicators per Financial Sustainability Strategy 2016-2025 Cash Holdings Ratio 4.1 4.2 4.1 3.9 3.9 4.2 4.4 4.6 4.7 5.0 4.5 Target: Greater than 3 months Calculation: (Cash / ((Operating Expenditure less Depreciation Expense)/12 months)) Current Ratio 1.6 1.7 1.6 1.6 1.6 1.7 1.8 1.8 1.9 2.1 1.9 Target: Greater than 1.1 Calculation: (Current Assets / Current Liabilities) Debt Servicing Ratio 2.3% 2.6% 2.8% 3.1% 3.0% 2.9% 3.6% 3.4% 3.3% 3.1% 3.0% Target: Less than 10% Calculation: (Loan principle and interest repayments / recurrent revenue)
Page 26 Budgeted Statement of Comprehensive Income Revised Budget Projected Years Budget 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Income Recurrent Revenue Rates and Utility Charges 41,594 44,260 46,405 48,653 51,011 53,482 56,074 58,791 61,640 64,626 67,758 Fees & Charges 4,197 4,160 4,378 4,608 4,850 5,104 5,372 5,655 5,951 6,264 6,593 Interest Received 1,848 1,818 1,791 1,767 1,768 1,817 1,866 1,903 1,972 2,098 2,056 Sales of Contract and Recoverable 3,968 3,739 3,857 3,980 4,106 4,236 4,370 4,508 4,651 4,798 4,950 Works Share of Profit from Associate 1,263 1,701 1,707 1,810 1,833 1,833 1,833 1,833 1,833 1,833 1,833 Other Revenue 1,995 2,023 2,084 2,193 2,309 2,373 2,440 2,509 2,582 2,656 2,734 Operating Grants, Subsidies, 3,376 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 Contributions and Donations Total Recurrent Revenue 58,241 61,008 63,530 66,319 69,184 72,154 75,262 78,507 81,937 85,584 89,232 Capital Revenue Capital Grants, Subsidies, 31,790 2,814 1,240 1,265 1,290 1,316 1,342 1,370 1,397 1,424 1,453 Contributions and Donations Contributions from Developers 1,592 1,640 2,164 2,208 2,252 2,297 2,343 2,390 2,438 2,486 2,536 Total Capital Revenue 33,382 4,454 3,404 3,473 3,542 3,613 3,685 3,760 3,835 3,910 3,989 Total Income 91,623 65,462 66,934 69,792 72,726 75,767 78,947 82,267 85,772 89,494 93,221 Expenses Recurrent Expenses Employee Expenses 25,552 25,990 26,624 27,333 28,061 28,808 29,575 30,363 31,172 32,002 32,854 Materials & Services 17,287 18,406 18,677 19,175 19,685 20,210 20,748 21,690 22,838 24,286 25,553 Finance Costs 835 975 1,079 1,196 1,159 1,109 1,219 1,149 1,068 984 894 Depreciation & Amortisation 11,225 12,417 13,162 13,952 14,789 15,676 16,617 17,614 18,671 19,791 20,978 Total Recurrent Expenses 54,899 57,788 59,543 61,656 63,694 65,803 68,159 70,816 73,749 77,063 80,279 Total Expenses 54,899 57,788 59,543 61,656 63,694 65,803 68,159 70,816 73,749 77,063 80,279 Net Result 36,724 7,674 7,391 8,136 9,032 9,964 10,789 11,451 12,023 12,430 12,942 Operating Revenue (Recurrent 58,241 61,008 63,530 66,319 69,184 72,154 75,262 78,507 81,937 85,584 89,232 Revenue) Operating Expenses (Recurrent 54,899 57,788 59,543 61,656 63,694 65,803 68,159 70,816 73,749 77,063 80,279 Expenses) Operating Result (Recurrent Result) 3,342 3,220 3,987 4,663 5,490 6,351 7,104 7,691 8,188 8,520 8,953
Page 27 Budgeted Statement of Financial Position
Revised Budget Projected Years Budget 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Assets Current Assets Cash & Cash Equivalents 14,892 16,041 15,760 15,549 15,743 17,338 18,750 20,312 21,795 23,955 22,302 Trade & Other Receivables 5,563 5,563 5,563 5,563 5,563 5,563 5,563 5,563 5,563 5,563 5,563 Inventories 900 900 900 900 900 900 900 900 900 900 900 Other Assets 700 700 700 700 700 700 700 700 700 700 700 Total Current Assets 22,055 23,204 22,923 22,712 22,906 24,501 25,913 27,475 28,958 31,118 29,465 Non-Current Assets Trade & Other Receivables 14,676 14,676 14,676 14,676 14,676 14,676 14,676 14,676 14,676 14,676 14,676 Property, Plant & Equipment 746,271 775,763 807,458 837,435 868,468 903,385 936,484 970,822 1,006,723 1,043,310 1,085,189 Investment in Associate 31,407 32,386 33,388 34,423 35,480 36,537 37,594 38,651 39,708 40,765 41,822 Total Non-Current Assets 792,354 822,825 855,522 886,534 918,624 954,598 988,754 1,024,149 1,061,107 1,098,751 1,141,687 Total Assets 814,409 846,029 878,445 909,246 941,529 979,099 1,014,667 1,051,624 1,090,065 1,129,869 1,171,152 Liabilities Current Liabilities Trade & Other Payables 4,435 4,435 4,435 4,435 4,435 4,435 4,435 4,435 4,435 4,435 4,435 Borrowings 672 829 977 1,034 1,086 1,569 1,652 1,735 1,822 1,915 2,011 Employee Benefits 8,707 8,707 8,707 8,707 8,707 8,707 8,707 8,707 8,707 8,707 8,707 Total Current Liabilities 13,814 13,971 14,118 14,176 14,227 14,711 14,794 14,877 14,963 15,056 15,153 Non-Current Liabilities Borrowings 17,248 19,394 21,774 20,965 19,880 21,817 20,315 18,579 16,757 14,843 12,832 Employee Benefits 725 725 725 725 725 725 725 725 725 725 725 Provisions 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 3,332 Total Non-Current Liabilities 21,304 23,451 25,831 25,022 23,937 25,874 24,371 22,636 20,814 18,900 16,889 Total Liabilities 35,118 37,422 39,950 39,198 38,164 40,584 39,166 37,513 35,778 33,956 32,041 Net Assets 779,291 808,607 838,496 870,048 903,365 938,515 975,502 1,014,110 1,054,287 1,095,913 1,139,110 Equity Asset Revaluation Surplus 233,242 254,883 277,381 300,797 325,082 350,268 376,466 403,624 431,778 460,973 491,229 Accumulated Surplus 546,050 553,724 561,115 569,251 578,283 588,247 599,036 610,486 622,509 634,940 647,881 Total Equity 779,291 808,607 838,496 870,048 903,365 938,515 975,502 1,014,110 1,054,287 1,095,913 1,139,110
Page 28 Budgeted Statement of Cash Flows
Revised Budget Projected Years Budget 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Cash Flows from Operating Activities Receipts from Customers 55,156 54,181 56,724 59,434 62,275 65,196 68,256 71,463 74,823 78,345 82,035 Payments to Suppliers and (44,940) (44,499) (45,407) (46,615) (47,856) (49,129) (50,437) (52,169) (54,128) (56,408) (58,530) Employees 10,216 9,682 11,318 12,818 14,419 16,066 17,819 19,294 20,695 21,936 23,505 Receipts: Interest Received 1,848 1,818 1,791 1,767 1,768 1,817 1,866 1,903 1,972 2,098 2,056 Operating Grants, Subsidies, 3,376 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 3,308 Contributions and Donations Payments: Interest Expense (735) (872) (974) (1,089) (1,049) (998) (1,105) (1,033) (950) (864) (771) Net Cash Inflow / (Outflow) from 14,704 13,936 15,442 16,805 18,446 20,194 21,887 23,471 25,026 26,478 28,098 Operating Activities Cash Flows from Investing Activities Receipts: Proceeds from Sale of PP&E 1,268 1,305 1,329 789 796 839 745 886 938 905 776 Dividend Received from 560 722 705 775 776 776 776 776 776 776 776 Associate Capital Grants, Subsidies, 38,168 4,454 3,404 3,473 3,542 3,613 3,685 3,760 3,835 3,910 3,989 Contributions and Donations Payments: Payments for PP&E (57,539) (21,572) (23,689) (21,301) (22,332) (26,247) (24,263) (25,679) (27,356) (28,088) (33,377) Net Cash Inflow / (Outflow) from (17,542) (15,091) (18,251) (16,264) (17,218) (21,019) (19,057) (20,257) (21,807) (22,497) (27,836) Investing Activities Cash Flows from Financing Activities Receipts: Proceeds from Borrowings 4,000 3,000 3,357 225 0 3,506 150 0 0 0 0 Payments: Repayment of Borrowings (604) (697) (829) (977) (1,034) (1,086) (1,569) (1,652) (1,735) (1,822) (1,915) Net Cash Flow inflow / (Outflow) 3,396 2,303 2,528 (752) (1,034) 2,420 (1,419) (1,652) (1,735) (1,822) (1,915) from Financing Activities Net Increase/(Decrease) in Cash 558 1,149 (281) (211) 194 1,595 1,412 1,562 1,483 2,159 (1,653) plus: Cash & Cash Equivalents - 14,334 14,892 16,041 15,760 15,549 15,743 17,338 18,750 20,312 21,795 23,955 beginning of year Cash & Cash Equivalents - end 14,892 16,041 15,760 15,549 15,743 17,338 18,750 20,312 21,795 23,955 22,302 of the year
Page 29 Budgeted Statement of Changes in Equity
Revised Budget Projected Years Budget 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Accumulated Surplus Opening Balance 509,326 546,050 553,724 561,115 569,251 578,283 588,247 599,036 610,486 622,509 634,940 Net Operating Result for 36,724 7,674 7,391 8,136 9,032 9,964 10,789 11,451 12,023 12,430 12,942 the Year Closing Balance 546,050 553,724 561,115 569,251 578,283 588,247 599,036 610,486 622,509 634,940 647,881
Asset Revaluation Surplus Opening Balance 214,047 233,242 254,883 277,381 300,797 325,082 350,268 376,466 403,624 431,778 460,973 Asset Revaluation 19,194 21,642 22,497 23,416 24,286 25,186 26,198 27,158 28,154 29,195 30,256 Adjustments Closing Balance 233,242 254,883 277,381 300,797 325,082 350,268 376,466 403,624 431,778 460,973 491,229
Total Equity Opening Balance 723,373 779,291 808,607 838,496 870,048 903,365 938,515 975,502 1,014,110 1,054,287 1,095,913 Net Operating Result for 36,724 7,674 7,391 8,136 9,032 9,964 10,789 11,451 12,023 12,430 12,942 the Year Asset Revaluation 19,194 21,642 22,497 23,416 24,286 25,186 26,198 27,158 28,154 29,195 30,256 Adjustments Closing Balance 779,291 808,607 838,496 870,048 903,365 938,515 975,502 1,014,110 1,054,287 1,095,913 1,139,110
Page 30 6.5 Sensitivity Analysis
Sensitivity analysis has been undertaken of the key assumptions most likely to impact the achievement of the LTFF's financial targets.
Income
Key Risks Analysis of Council's sources of income has shown that, other than rates and charges, these have not increased in line with price increases since 2010-11. The following table demonstrates what the level of these other income sources has been over the last five years based on the original budgets from those years.
Recurrent Revenue 2010-11 2011-12 2012-13 2013-14 2014-15 Fees & Charges $3.9M $4.0M $3.8M $3.7M $3.9M Interest Received $1.9M $2.3M $2.4M $2.0M $1.7M Sales of Contract & Recoverable Works $3.5M $5.0M $4.5M $5.6M $3.7M Share of Profit from Associate $0.0M $0.0M $1.3M $1.3M $1.3M Other Revenue $2.9M $3.0M $1.7M $1.7M $2.0M Operating Grants, Subsidies & Contributions $3.4M $3.6M $3.8M $3.2M $3.2M Total Revenue $15.7M $17.9M $17.5M $17.5M $15.9M
The original budget is used because rates and charges are set each year based on the original budget. Overall these other income sources have increased by 1% over five years.
The reason this is important is that these other sources of income currently represent 27% of Council's recurrent funding. In 2010-11 they represented 29% of Council's recurrent funding. The proportion of recurrent funding they represent has reduced resulting in the funding shortfall created being addressed through reductions in expenditure but also increases in rates and charges.
A key risk for Council is that this pattern will continue due to circumstances outside its control. The assumption in the LTFF is that at least some of these sources of other income will increase each year.
Council has already assumed that interest received and operating grants will not increase in line with any price index in the LTFF. This is due to interest being based on the level of cash held and market-based interest rates and the freezing of indexation of financial assistance grants by the Federal Government.
The sensitivity analysis performed consisted of reducing the assumption for fees and charges and other revenue to 0% instead of the assumptions used in the LTFF to evaluate the impact of these recurrent sources of revenue not increasing. As revenue from sales of contract and recoverable works is also tied to expenditure this was not changed as it was assumed that expenditure would also not increase if revenues did not increase.
The impacts on the financial sustainability indicators are as follows: Operating Surplus Ratio; this remains within the 0% to 10% target identified over the life of the LTFF, however, it worsens the ratio from 2016-17 onwards due to the lower level of recurrent revenue generated by the forecast. Net Financial Liabilities Ratio; this remains less than the 60% target identified over the life of the LTFF, however, it worsens the ratio from 2016-17 onwards due to the lower level of recurrent revenue generated by the forecast. Asset Sustainability Ratio; this ratio remains unchanged.
Page 31 Cash Holdings Ratio; this ratio deteriorates and falls below the target of greater than 3 months in 2022-23 in the LTFF although it worsens from 2016-17 onwards. This ratio is highly sensitive to any change in the assumptions relating to recurrent income due to the compounding nature that any change in recurrent funding has on cash. Current Ratio; this ratio worsens from 2017-18 onwards and falls below the target of greater than 1.1 in 2024-25 due to the lower level of cash generated by the forecast. Debt Servicing Ratio; this ratio remains less than the 10% target identified over the life of the LTFF, however, it worsens from 2016-17 onwards due to the lower level of recurrent revenue generated by the forecast.
The conclusion that can be drawn from the sensitivity analysis is that, if sources of income other than rates and charges do not increase in line with price increases, Council cannot allow this to occur without undertaking a corrective change as the resulting effect on the financial sustainability ratios is unsustainable. This would likely take the form of reducing expenditure or increasing rates and charges.
Expenditure
Key Risks The key risk to Council's financial sustainability is a lift in recurrent expenditure without an associated lift in recurrent sources of funding. Areas where this could occur are employee costs and materials and services. The sensitivity analysis performed consisted of increasing the assumption for employee costs and materials and services from 2% to 2.5% over the life of the LTFF to evaluate the impact of these recurrent expenditures increasing by more than what has been assumed in the forecast.
The impacts on the financial sustainability indicators are as follows: Operating Surplus Ratio; this remains within the 0% to 10% target identified over the life of the LTFF, however, it worsens the ratio from 2016-17 onwards due to the higher level of recurrent expenditure generated by the forecast. Net Financial Liabilities Ratio; this remains less than the 60% target identified over the life of the LTFF, however, it worsens the ratio from 2016-17 onwards due to the higher level of recurrent expenditure generated by the forecast. Asset Sustainability Ratio; this ratio remains unchanged. Cash Holdings Ratio; this ratio deteriorates and falls below the target of greater than 3 months in 2024-25 in the LTFF although it worsens from 2016-17 onwards. This ratio is highly sensitive to any change in the assumptions relating to recurrent expenditure due to the compounding nature that any change in recurrent expenditure has on cash. Current Ratio; this remains above the target identified of 1.1 over the life of the LTFF, however, this ratio worsens from 2018-19 onwards due to the lower level of cash generated by the forecast. Debt Servicing Ratio; this ratio remains unchanged.
The conclusion that can be drawn from the sensitivity analysis is that, if recurrent expenditures increase by more than what is assumed in the forecast, Council cannot allow this to occur without undertaking a corrective change as the resulting effect on the financial sustainability ratios is unsustainable. This would likely take the form of increasing rates and charges.
Another key risk for expenditure is any change in disaster management funding arrangements that increases the exposure of local government. A key challenge for Council is that it does not have cash reserves to draw upon in the event that it may be required to make substantial contributions towards disaster management. If these funding arrangements were to change in future, this would present a significant funding issue.
Page 32 7 Supporting References
Local Government Act 2009
Local Government Regulation 2012
Financial Management (Sustainability) Guideline 2013
Scenic Rim Community Plan 2011-2026
Scenic Rim Regional Council Corporate Plan 2013-2018
Scenic Rim Regional Council Operational Plan 2014/2015
Scenic Rim Regional Council Budget Forecast Financial Sustainability (June 2009) Orion Consulting Network
Scenic Rim Regional Council Budget Forecast Financial Sustainability (June 2011) Orion Consulting Network
Scenic Rim Regional Council Financial Sustainability Review (December 2013) Queensland Treasury Corporation
National State of the Assets (November 2014) Jeff Roorda and Associates for the Australian Local Government Association
Results of Audit: Local Government Entities 2012-13 (March 2014) Queensland Audit Office https://www.qao.qld.gov.au/files/file/Reports%20and%20publications/Reports%20to%20Parliament %202013-14/RtP14Localgovtentities2012-13.pdf
In Our Hands: Strengthening Local Government Revenue for the 21st Centuary (February 2013) Australian Centre for Excellence for Local Government (ACELG) http://www.acelg.org.au/news/stronger-local-government-revenues
Factors Impacting Local Government Financial Sustainability: A Council Segment Approach (September 2013) Local Government Association of Queensland (LGAQ) [http://www.lgaq.asn.au/documents/10136/13500/Factors%20Impacting%20Local%20Government %20Financial%20Sustainability%20A%20Council%20Segment%20Approach%20- %20Final%20Report%2020130926.pdf]
Report of the Local Government Reform Commission - Volume 1 (July 2007) Local Government Reform Commission http://www.parliament.qld.gov.au/documents/TableOffice/TabledPapers/2007/TP1809-2007.pdf
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Page 33 Budget Documentation
Revenue Statement Revenue Policy Debt Policy
114 Budget Documentation
REVENUE STATEMENT 2015-16
Date Adopted: 24 June 2015 Committee Reference: Special Meeting; 24 June 2015; Item Number File Reference: 12/06/004 Related Policies/Local Laws/Legislation: Local Government Act 2009 Local Government Regulation 2012 Fire and Emergency Services Act 1990 Land Title Act 1994 Land Valuation Act 2010 Liquor Act 1992 FI01.03CP; Revenue Policy FI02.01CP; Rates Discount Policy
INTRODUCTION Council is required to produce a Revenue Statement to accompany the budget each year. The Revenue Statement is an explanatory statement outlining and explaining the revenue measures adopted in the annual budget and is produced in accordance with the Revenue Policy. The Revenue Statement 2015-16 applies to the financial year ending 30 June2016.
LEGISLATIVE REQUIREMENTS Council is required by section 104 of the Local Government Act 2009 (the Local Government Act) and section 169 of the Local Government Regulation 2012 (the Regulation) to produce a Revenue Statement.
Section 172 of the Regulation requires the Revenue Statement to state: (a) if the local government levies differential general rates: (i) the rating categories for rateable land in the local government area; and (ii) a description of each rating category; and (b) if the local government levies special rates or charges for a joint government activity, a summary of the terms of the joint government activity; and (c) if the local government fixes a cost-recovery fee, the criteria used to decide the amount of the cost-recovery fee; and (d) if the local government conducts a business activity on a commercial basis, the criteria used to decide the amount of the charges for the activity's goods and services.
Revenue Statement 2015-16 Page 1 of 20 The Revenue Statement must also include: (a) an outline and explanation of the measures that the local government has adopted for raising revenue, including an outline and explanation of: (i) the rates and charges to be levied in the financial year; and (ii) the concessions for rates and charges to be granted in the financial year; (b) whether the local government has made a resolution limiting an increase of rates and charges.
REVENUE PRINCIPLES The Council is required to raise an appropriate amount of revenue to maintain assets and provide services to the Scenic Rim region as a whole. In deciding how revenue is raised Council has regard to the following principles:
Equity; defined as ensuring the fair and consistent application of lawful rating and charging principles, without bias, taking account of all relevant considerations. Effectiveness/Efficiency; defined as meeting the financial, social, economic and environmental or other corporate objectives of the Council as stated in its long term plans or policies. Simplicity; to ensure widespread community or stakeholder understanding, and minimise perceived inequities and hidden costs, of a complex system. Sustainability; revenue decisions support the financial strategies for the delivery of infrastructure and services identified in Council’s long term planning.
REVENUE GUIDELINES Council identifies services where the cost of providing the service will be met by the consumer of that service. The cost of providing the service will include the cost of acquiring the service, the cost of providing the infrastructure or organisation to process and/or deliver the service and any associated overheads.
Individual consumers of a service cannot always be separately identified. For this reason there is a need for specific user charges to be supplemented by other general revenue sources.
The relevant components of Council rates and charges are based on a combination of specific user charges, a separate charge and a rate on the value of land to provide the most equitable and rational basis for raising revenue.
Rates and charges are determined after due consideration of the following: Council’s legislative obligations; The needs and expectations of the general community as determined by formal and informal consultation and survey processes; The cost of maintaining existing facilities and necessary services; The need for additional facilities and services; and Equity.
Revenue Statement 2015-16 Page 2 of 20 2015-16 RATES AND CHARGES Pursuant to section 94 of the Local Government Act Council hereby resolves to make the following rates and charges for the twelve months ended 30 June 2016.
GENERAL RATES General rates are for services, facilities and activities that are supplied or undertaken for the benefit of the community in general (rather than a particular person).
Differential General Rates
In accordance with section 80 of the Regulation Council will adopt a differential general rating scheme. A differential general rate will be levied on all rateable land based on the value of the land as assessed by the Department of Natural Resources and Mines.
The categories into which rateable land is categorised, the description of those categories and the method by which land is to be identified and included in its appropriate category is contained in the following differential general rate tables.
Revenue Statement 2015-16 Page 3 of 20 Differential General Rate Categories
Residential Principal Place of Residence
Rate Minimum Capped % Category Description Cents in General Increase $ Rate $ 1 Land used for a residential purpose, including rural residential land, a lot in a community title scheme and 0.8233 1,134 15% residential group titles, that is the owner's principal place of residence and is not otherwise included in categories 21 to 25.
Residential Future Principal Place of Residence
Rate Minimum Capped % Category Description Cents in General Increase $ Rate $ 1FPR Vacant land used for a residential purpose, including rural residential land, that an owner intends to make its 0.8233 1,134 15% principal place of residence.
Residential Non-Principal Place of Residence
Rate Minimum Capped % Category Description Cents in General Increase $ Rate $ 1NPR Land used for a residential purpose, including rural residential land, a lot in a community title scheme, 0.9880 1,361 15% residential group titles and vacant land, that is not the owner's principal place of residence and is not otherwise included in category 1, category 1FPR or categories 21 to 25.
Revenue Statement 2015-16 Page 4 of 20 Multi-Unit Dwellings
Rate Minimum Capped % Category Description Cents in General Increase $ Rate $ 21 Residential land: 1.0868 1,679 15% 1. used for a multi-unit residential building, which does not form part of a community title scheme or residential group title; and 2. consisting of 2 to 3 flats or units; or 3. consisting of a duplex. 22 Residential land: 1.1955 1,847 15% 1. used for a multi-unit residential building, which does not form part of a community title scheme or residential group title; and 2. consisting of 4 to 5 flats or units. 23 Residential land: 1.3151 2,032 15% 1. used for a multi-unit residential building, which does not form part of a community title scheme or residential group title; and 2. consisting of 6 to 7 flats or units. 24 Residential land: 1.4466 2,236 15% 1. used for a multi-unit residential building, which does not form part of a community title scheme or residential group title; and 2. consisting of 8 to 9 flats or units. 25 Residential land: 1.5913 2,459 15% 1. used for a multi-unit residential building, which does not form part of a community title scheme or residential group title; and 2. consisting of greater than 9 flats or units.
Rural
Rate Minimum Capped % Category Description Cents in General Increase $ Rate $ 9 Land used for rural or agricultural purposes other than land included in categories 10-19. 0.6562 1,213 15%
Revenue Statement 2015-16 Page 5 of 20 Commercial
Rate Minimum Capped % Category Description Cents in General Increase $ Rate $ 11 Land used, in whole or in part, for poultry farming for more than 1,000 birds. 1.0885 7,663 30% 12 Land used for the purposes of a shopping centre with a gross floor area of greater than 1,250 square metres 1.9862 59,958 N/A and/or onsite parking for more than 100 vehicles. 13 Land used for: 3.6594 5,389 N/A (a) commercial water drainage, storage and delivery; and (b) any purpose associated with, or ancillary to, commercial water drainage, storage and delivery, such as maintenance, accommodation, recreational and/or education facilities. 14 Land used for hotels, motels, guest houses and accommodation units with more than 35 lettable rooms/units. 0.9511 17,359 N/A 15 Land used for noxious or offensive industries, or those classed as environmentally relevant activities, with more 2.0337 34,714 N/A than 40 employees/contractors, including those processing animal products. 16 Land used for other noxious or offensive industries not included in category 15. 1.5082 4,735 N/A 17 Land used, in whole or in part, for extractive industry licensed for more than 100,000 tonnes of material. 2.0861 27,382 N/A 18 Land used, in whole or in part, for extractive industry licensed for 5,000 to 100,000 tonnes of material. 1.0762 14,099 N/A 19 Land used for other commercial or industrial purposes, not included in categories 11 to 18, including lots in a 0.7818 1,738 30% community title scheme or building units/group titles used for commercial or industrial purposes.
Other
Rate Minimum Capped % Category Description Cents in General Increase $ Rate $ 10 Land used for pump sites and dip sites valued separately from balance of holding or held separately by trustees. 0.6562 23 N/A 20 All other land not included in any other category. 0.8233 1,165 N/A
Revenue Statement 2015-16 Page 6 of 20 Categorisation of Land for Differential General Rates
Council delegates to the Chief Executive Officer the power (contained in section 81(4) and (5) of the Regulation) to identify the rating category to which each parcel of rateable land in Council’s area belongs.
Definitions for the purposes of determining the categorisation of property for rating
Principal Place of Residence A "principal place of residence" is defined as a single approved* dwelling house or approved dwelling unit that is the place of residence at which at least one person who constitutes the owner/s of the land predominantly resides. In establishing principal place of residence, Council may consider, but not be limited to, the owner's declared address for electoral, taxation, government social security or national health registration purposes, or any other form of evidence deemed acceptable by Council. Residential premises that have not met these criteria will be deemed a non-principal place of residence.
A dwelling house or dwelling unit is not a principal place of residence where it is not occupied, whether permanently or temporarily (for more than 120 days of the financial year), including for the purposes of renovation or redevelopment; except where: (a) a premises being renovated remains the registered principal place of residence for the purposes specified above and that the owner/s do not own any other property which they claim to be their principal place of residence; and (b) a property is vacant for longer than 120 continuous days of the financial year due to owner/s absence on an extended holiday, provided that the property remains vacant for the entire period of their absence.
*Approved in the context of the definition of "principal place of residence" means a property where a final building inspection certificate for a dwelling house or dwelling unit has been issued or an approval for establishment or occupation of a temporary home has been granted.
Vacant Land Land with no improvements. It does not include land containing structures either temporarily or permanently vacant.
Revenue Statement 2015-16 Page 7 of 20 Objecting to Differential General Rate Category
In accordance with Division 4 of the Regulation the owners of rateable land will be informed that they have the right of objection to the rates category their land is included in. Pursuant to section 90 of the Regulation objections must be in writing and received within 30 (thirty) days of rate notices being issued. The only ground for objecting is that the owner considers the land should belong to a different rating category.
Land Valuation
A differential general rate will be levied on all rateable land based on the value of the land as assessed by the Department of Natural Resources and Mines. The value of the land is either the site value (non-rural land) or the unimproved value (rural land) determined under the Land Valuation Act 2010.
Minimum General Rate
Regardless of the value of the land, there will be a minimum contribution required from each ratepayer towards the overall running of the Council. This will be achieved by the application of minimum general rates.
In accordance with section 77(3) of the Regulation properties subject to a discounted valuation are exempt from the minimum general rate.
Limitation of Increase in Differential General Rate
In accordance with section 116 of the Regulation, for the 2015-16 financial year Council will limit any increase in the differential general rate in specified rating categories to the differential general rate levied in the 2014-15 financial year by the percentage shown in the Differential General Rate Category tables.
The limitation of the increase in the differential general rate does not apply in the following instances: The area of the rateable land changes; The assessment is the minimum general rate in the current year; There has been a change in valuation (other than the revaluation of the entire local government area) during the current or previous financial year; or The land is no longer subject to Section 50 of the Land Valuation Act 2010.
For land on which the differential general rate levied for the previous financial year was for a period of less than the full year, the differential general rate for the previous year will be annualised and the limitation applied to the annualised amount.
Revenue Statement 2015-16 Page 8 of 20 SEPARATE RATES AND CHARGES Separate rates and charges are for any other service, facility or activity that is not funded through other rates and charges.
In accordance with section 94 of the Local Government Act and section 103 of the Regulation, Council will levy separate charges on all rateable assessments within the Scenic Rim region for community infrastructure.
It is considered that it is more appropriate to raise these funds by a separate charge, rather than from general funds, so that the community is aware of Council’s commitment to the specific activities to be funded by the charges.
Community Infrastructure
A separate charge will be levied equally on all properties within the Scenic Rim region for community infrastructure. Revenue raised from this charge will be used to fund either all or part of the costs associated with road and bridge infrastructure maintenance.
In 2015-16 the Separate Charge: Community Infrastructure will be $295.00 per rateable assessment. A pro rata charge effective from the date of valuation will apply to new properties created during the financial year.
Revenue Statement 2015-16 Page 9 of 20 SPECIAL RATES AND CHARGES Special rates and charges are for services, facilities and activities that have a special association with particular land because: (a) the land or its occupier: (i) specially benefits from the service, facility or activity; or (ii) has or will have special access to the service, facility or activity; or (b) the land is or will be used in a way that specially contributes to the need for the service, facility or activity; or (c) the occupier of the land specially contributes to the need for the service, facility or activity.
In accordance with section 92 of the Local Government Act and section 94 of the Regulation, Council will levy special charges for rural fire services.
Rural Fire Levy
Pursuant to section 94(1) of the Local Government Act, Council will levy a special charge on all rateable assessments within the Rural Fire Brigade areas of its territorial unit, as determined by the Queensland Fire and Emergency Service (QFES) Commissioner and delineated on electronic maps provided by QFES.
There are three separate special charges based on the Rural Fire Brigade areas as described.
Each rateable assessment within each Rural Fire Brigade area specially benefits from the service, facility, or activity that the Rural Fire Brigade provides or undertakes.
Council will remit the special charge proceeds to the Rural Fire Brigade Group of the QFES to fund ongoing provision and maintenance of fire fighting equipment and operations for the Rural Fire Brigades. The proceeds will be distributed according to the funding requirements identified in the annual budgets and determined by the Local Area Finance Committee of the Scenic Rim Rural Fire Brigade Group.
Special Charge 1 - Rural Fire Brigade
Council will levy a special charge as follows:
1. On land to which the plan described in paragraph 3 applies, to assist the following Rural Fire Brigades in accordance with that plan: Mutdapilly, Lower Mount Walker and Flinders Peak.
2. The special charge is $42.00 per rateable assessment.
3. The overall plan for the service, facility, or activity to be funded by the special charge is as follows: (a) The land to which the plan applies is the rateable land within the Rural Fire Brigade areas delineated on electronic maps provided by QFES. (b) The service, facility, or activity for which the plan is made is for Council to assist Rural Fire Brigades to: (i) purchase and maintain equipment; and (ii) fund operational activities. (c) The estimated cost of implementing the overall plan is $16,464. (d) The estimated time for implementing the overall plan is 1 (one) year commencing 1 July 2015 and ending 30 June 2016.
Revenue Statement 2015-16 Page 10 of 20 Special Charge 2 - Rural Fire Brigade
Council will levy a special charge as follows:
1. On land to which the plan described in paragraph 3 applies, to assist the following Rural Fire Brigades in accordance with that plan: Allandale, Aratula, Cannon Creek, Croftby/Carneys Creek, Kalbar, Maroon, Mt Alford, Mt French, Mt Walker, Roadvale, Rosevale, Tarome and Warrill View.
2. The special charge is $18.00 per rateable assessment.
3. The overall plan for the service, facility, or activity to be funded by the special charge is as follows: (a) The land to which the plan applies is the rateable land within the Rural Fire Brigade areas as delineated on electronic maps provided by QFES. (b) The service, facility, or activity for which the plan is made is for Council to assist Rural Fire Brigades to: (i) purchase and maintain equipment; and (ii) fund operational activities. (c) The estimated cost of implementing the overall plan is $56,988. (d) The estimated time for implementing the overall plan is 1 (one) year commencing 1 July 2015 and ending 30 June 2016.
Special Charge 3 - Rural Fire Brigade
Council will levy a special charge as follows:
1. On land to which the plan described in paragraph 3 applies, to assist the following Rural Fire Brigades in accordance with that plan: Beechmont, Biddaddaba, Birnam, Canungra, Cedar Creek/Wolffdene, Kerry, Rathdowney, Tamborine Mountain, Tamborine and Woodhill.
2. The special charge is $38.00 per rateable assessment.
3. The overall plan for the service, facility, or activity to be funded by the special charge is as follows: (a) The land to which the plan applies is the rateable land within the Rural Fire Brigade areas as delineated on electronic maps provided by QFES. (b) The service, facility, or activity for which the plan is made is for Council to assist Rural Fire Brigades to: (i) purchase and maintain equipment; and (ii) fund operational activities. (c) The estimated cost of implementing the overall plan is $136,686. (d) The estimated time for implementing the overall plan is 1 (one) year commencing 1 July 2015 and ending 30 June 2016.
Revenue Statement 2015-16 Page 11 of 20 UTILITY CHARGES Utility charges are for a service, facility or activity such as waste management, gas, sewerage and water.
In accordance with section 92 of the Local Government Act and section 99 of the Regulation, Council will levy utility charges for: Waste Disposal Waste Management
Waste Disposal
Council will levy a Waste Disposal utility charge on residential and rural properties that: (a) do not receive a Council kerbside waste and recyclables collection or Council bulk bin service; and (b) have improvements recorded against the property as determined by Scenic Rim Regional Council's property and rating system.
The proceeds from the Waste Disposal charge shall be applied to fund recurrent and capital expenditure and administration costs associated with the ongoing operation, maintenance and upgrading of Council’s waste management facilities comprising landfill sites, transfer stations, weighbridge and rubbish bins located throughout the Scenic Rim region.
In 2015-16 the Waste Disposal charge will be $97.00 per rateable assessment. A pro rata charge effective from the date of valuation will apply to new properties created during the financial year not already excluded above.
Waste Management
The charges for the dual domestic 240 litre bin service and the dual commercial (non- domestic) 240 litre bin service incorporate both the waste service and the recycling service. The dual waste service comprises a 240 litre waste bin serviced kerbside once per week and a 240 litre recycling bin serviced kerbside once per fortnight.
New services will receive a pro rata supplementary notice effective from the date of delivery of waste and/or recycling containers.
The following waste collection charges are applicable for the 2015-16 financial year:
Domestic (Wheelie Bin) Waste Management Service Charge
The following properties within the Waste Collection Areas, as identified in Appendix 1, of the Scenic Rim Regional Council will be charged for a dual domestic waste collection service: all occupied residential premises or land all occupied community titles scheme residential premises new domestic/residential premises issued with Form 21 Certificate of Final Inspection
Revenue Statement 2015-16 Page 12 of 20 Size and Type of Container Charge 240 Litre Dual Waste & Recycling Container Kerbside $314.00 Additional 240 Litre Dual Waste & Recycling Container Kerbside $314.00 Additional 240 Litre Waste Container Kerbside $183.00 Additional 240 Litre Recycling Container Kerbside $131.00
Commercial (Wheelie Bin) Waste Management Service Charge
The following properties within the Waste Collection Areas, as identified in Appendix 1, of the Scenic Rim Regional Council will be charged for a dual commercial collection service: all occupied commercial premises all occupied community titles scheme commercial (non-domestic) residential premises new commercial premises issued with either Form 21 Certificate of Final Inspection or Certificate of Classification for Commercial Premises
Size and Type of Container Charge 240 Litre Dual Waste & Recycling Container Kerbside $432.00 Additional 240 Litre Dual Waste & Recycling Container Kerbside $432.00 Additional 240 Litre Waste Container Kerbside $288.00 Additional 240 Litre Recycling Container Kerbside $144.00
Additional services will also be charged on the basis of the above table.
Bulk Bin Waste Management Service Charge
The charges set out below are for one service per week.
Size and Type of Container Charge 1 Cubic Metre $1,164.00 1.5 Cubic Metres $1,746.00 2 Cubic Metres $2,328.00 3 Cubic Metres $3,492.00
Bulk waste service charges do not include a charge for a recycling service. If a premise with a bulk waste service requests a recycling service an additional charge will apply.
Exemptions
No separate waste/recycling charge will be levied for storage lots and garage lots that are separate lots in a community titles scheme.
Commercial (non-domestic) recycling services shall be provided free of charge to schools if Council is providing an existing waste service.
Exemptions also apply to premises that meet the criteria outlined in Council's Waste Collection Policy WI03.02CP under 'Exemption and Temporary Exemption'.
Revenue Statement 2015-16 Page 13 of 20 Changes in Waste Services
Where a property owner wishes to: increase or decrease the number of domestic bin services, commercial bin services or bulk bin services received per week; or vary the size or number of receptacles used for any type of service
The owner or authorised agent of the owner must make written application to Council setting out the proposed variation and the reason for the variation.
Where Council agrees to the proposed variation, the owner or agent will be advised of the applicable utility charges based on the relevant charges set out in this document. Any resulting amendment to charges will apply from the date on which the variation takes effect.
Cancellation of Services
Service cancellations are permitted in the following circumstances:
(a) Premises that have been vacant for 6 (six) months or more.
The property owner must complete a statutory declaration stating: (i) the reason the premises is unoccupied; (ii) the period for which the premises has been unoccupied and is expected to remain unoccupied; and (iii) a proposed recommencement date for the provision of the waste/recycling services.
Where Council agrees not to levy a charge for a waste/recycling service in such circumstances the charges will cease to apply from the date Council receives the statutory declaration.
(b) Where Council receives advice that the premises have been demolished or rendered uninhabitable by damage from fire or disaster.
The charges will cease to apply from the later of the date Council receives the advice in writing or the date of demolition. Suitable advice includes Police or Fire Services report or Insurance Assessment report.
Cancellation must be in the form required by Council.
RECOVERY OF RATES AND CHARGES
Time Within Which Rates and Charges Must Be Paid
In accordance with section 118 of the Regulation rates and charges are due to be paid within 30 (thirty) days from the date of issue shown on the rate notice.
Revenue Statement 2015-16 Page 14 of 20 Interest on Overdue Rates or Charges
In accordance with section 133 of the Regulation interest on all overdue rates or charges will be calculated at a rate of 11% per annum compounded monthly.
Calculation of interest will be undertaken on monthly rests, with accrual commencing on the first day rates become overdue.
FEES AND CHARGES To minimise the general rate burden on ratepayers, Council will attempt to recover costs through charging fees for the use of services and facilities where it is administratively simple and efficient to do so.
A full list of Council’s fees and charges is maintained in a Register of Fees and Charges, which was adopted by Council on 24 June 2015 for the 2015-16 financial year.
Cost Recovery Fees
In accordance with section 97(1) of the Local Government Act Council has resolved to adopt a range of cost-recovery fees for the 2015-16 financial year. These fees are based on the user pays policy with consideration given, where appropriate, to the social impact certain fees may have.
Business Activity Fees
Council has the power to conduct business activities and to charge fees for services and facilities it provides on this basis. Business activity fees are fees other than cost-recovery fees, charged where Council provides a service for which a consumer can choose whether or not to avail itself. Business activity fees are purely commercial in application and are subject to the Commonwealth’s Goods and Services Tax.
In accordance with section 262(3)(c) of the Local Government Act Council has adopted a range of business activity fees for the 2015-16 financial year. Business activity fees include but are not confined to the following: rents, plant hire, private works and hire of facilities.
CONCESSIONS
Discount
In accordance with section 130 of the Regulation a discount of 5% will be allowed on general rates only for the 2015-16 financial year, only if the total amount of all rates and charges included on an assessment for which the discount is allowed and all overdue rates and charges, is received by Council on or before the due date for payment, which is 30 (thirty) days from date of issue shown on the rate notice.
Revenue Statement 2015-16 Page 15 of 20 Concessions
Voluntary Conservation Covenants
In accordance with section 120(1)(e) and section 122(1)(b) of the Regulation, Council will grant a partial rebate of the general rate to landowners who have entered into:
a voluntary conservation covenant registered under section 97A of the Land Title Act 1994 with Council; or
an unregistered voluntary conservation agreement with Council, to preserve, restore or maintain an area of environmental or scientific significance upon their rateable land, namely vegetation communities having levels of significance detailed below.
The rebate will be a pro rata percentage of the general rate attributable to the conservation area of the land.
The general rate attributable to the conservation area is the product of applying the following formula:
General Rate Amount x Conservation Area Area of Rateable Land
The rebate percentage is: 1. Level of Significance 1 – 100% rebate allowable if: (a) Landowner has not been issued with any Notice to Remedy; Full amount of the rebate allowable. (b) Landowner has been issued with a Severe Breach Notice to Remedy; Nil rebate allowable. (c) Landowner has been issued with a Moderate Breach Notice to Remedy; Half of the rebate allowable. Two (2) or more Moderate Breach Notices to remedy issued; Nil rebate allowable. (d) Landowner has been issued with a Minor Breach Notice to Remedy; One third of the rebate allowable. Three (3) or more Minor Breach Notices to remedy issued; Nil rebate allowable.
2. Level of Significance 2 – 75% rebate allowable if: (a) Landowner has not been issued with any Notice to Remedy; Full amount of the rebate allowable. (b) Landowner has been issued with a Severe Breach Notice to Remedy; Nil rebate allowable. (c) Landowner has been issued with a Moderate Breach Notice to Remedy; Half of the rebate allowable. Two (2) or more Moderate Breach Notices to remedy issued; Nil rebate allowable. (d) Landowner has been issued with a Minor Breach Notice to Remedy; One third of the rebate allowable. Three (3) or more Minor Breach Notices to remedy issued; Nil rebate allowable.
Revenue Statement 2015-16 Page 16 of 20 3. Level of Significance 3 – 50% rebate allowable if: (a) Landowner has not been issued with any Notice to Remedy; Full amount of the rebate allowable. (b) Landowner has been issued with a Severe Breach Notice to Remedy; Nil rebate allowable. (c) Landowner has been issued with a Moderate Breach Notice to Remedy; Half of the rebate allowable. Two (2) or more Moderate Breach Notices to remedy issued; Nil rebate allowable. (d) Landowner has been issued with a Minor Breach Notice to Remedy; One third of the rebate allowable. Three (3) or more Minor Breach Notices to remedy issued; Nil rebate allowable.
The Levels of Significance definitions applying to land covered by a voluntary conservation covenant or agreement is contained within Council’s Voluntary Conservation Agreements Landowners’ Information Kit.
Failure to comply with any Notice to Remedy will automatically result in loss of rebate.
Examples of notices to remedy that will result in loss or reduction of rebate allowable includes, but is not limited to, the following:
Level of Example Breach Severe Creation of a road Construction of a dam Draining of a wetland Clearing of a significant portion of the conservation area Moderate Selective clearing or thinning of part of the conservation area Failure to implement all elements of a property management plan Inappropriate construction of tracks Dumping of waste and rubbish Minor Adverse effect to the ecology through inappropriate activities that alter nutrient, fire, and moisture regimes of the conservation area Inappropriate management of stock within conservation area
Revenue Statement 2015-16 Page 17 of 20 Not-For-Profit Entities
In accordance with section 120(1)(b) and section 122(1)(a) of the Regulation, Council will grant a full rebate of the general rate, separate charge and the waste disposal utility charge to the following ratepayers:
Australian Red Cross Beaudesert Community Arts & Information Centre Association Inc Beaudesert RSL Sub Branch (Property ID 1218) Beaucare Inc Beaudesert Rifle Club Inc Blue Care Boys Town (Property ID 36625) Jymbilung House Aged & Disabled Care Services Memorial Ground (Rathdowney & District Memorial Grounds Inc) Moogerah Passion Play Association Inc Public Halls including School of Arts Roadvale Water Board Rural Lifestyles Options Association Inc (Property IDs 1188 & 1189) Society of Saint Vincent De Paul Tamborine Mountain Community Care Association Inc Tamborine Mountain Rainforest Trust
In accordance with section 120(1)(b) and section 122(1)(b) of the Regulation, Council will grant a full rebate of the general rate, separate charge and the waste disposal utility charge to the following classes of ratepayers: Community Not-For-Profit Kindergartens Country Women’s Associations Girl Guides Organisations Historical Societies Masonic Lodges Not-For-Profit Nursing Homes Rural Fire Brigades Scouting Organisations Show Societies Urban Fire Brigades
In accordance with section 120(1)(b) and section 122(1)(b) of the Regulation, Council will grant a full rebate of the general rate, separate charge and the waste disposal utility charge levied upon Council-owned and controlled land occupied by sporting organisations:
that are entities whose objects do not include making a profit for distribution among their members; and that do not hold liquor licences for the occupied land.
A liquor licence is a licence or permit issued under the Liquor Act 1992, allowing the holder to sell or supply liquor in excess of 21 hours per week. It does not encompass a licence or permit allowing the holder to sell or supply liquor for not more than 21 hours per week.
Council may consider applications for the rebate of rates and charges to entities who meet the criteria of section 120 of the Regulation.
Revenue Statement 2015-16 Page 18 of 20 Hardship
In accordance with section 120(1)(c) and section 122(1)(b) of the Regulation, Council will grant a full rebate of separate charges and the waste disposal utility charge levied to owners of the following classes of land:
dip and pump sites held separately from the balance of holdings or held separately by trustees; and
land identified as Historic Subdivisions under the Boonah Shire Planning Scheme effective 31 March 2006.
In accordance with section 120(1)(c) and section 122(1)(b) of the Regulation, Council will grant a rebate of whichever is the less of, $100 per annum and 10% of the gross rates and charges levied on rateable assessments, where the property is owned and occupied by totally and permanently incapacitated (TPI) veterans holding a TPI Gold Card.
Revenue Statement 2015-16 Page 19 of 20 Appendix 1 Waste and Recycling Collection Areas
Revenue Statement 2015-16 Page 20 of 20 FINANCE FINANCIAL MANAGEMENT Policy Number: FI01.03CP
COUNCIL POLICY: REVENUE
Date Adopted: 8 July 2008 Committee Reference: Ordinary Meeting; 8 July 2008; Item Number 6.1 Amended Date: 23 June 2009; 25 May 2010; 24 May 2011; 26 June 2012 20 June 2013; 3 July 2014; 24 June 2015 Contact officer: Chief Finance Officer Next review date: 30 June 2016 File Reference: 12/13/002; 04/15/004 Related Policies/Local Laws/Legislation: Local Government Act 2009 Local Government Regulation 2012 Land Valuation Act 2010 Uniform Civil Procedure Rules 1999 FI02.01CP; Rates Discount Policy Related Documents: Community Budget Report & Long Term Financial Forecast containing Council’s Revenue Statement and Register of Fees and Charges
OBJECTIVES The objective of this policy is to set out the principles used by Council in establishing its own source revenues including: • General rates • Separate rates and charges • Special rates and charges • Utility charges • Fees and charges Corporate Plan: Priority Area Organisational Sustainability Council strives to be a high performing and financially sustainable organisation with robust governance structures based on the principles of risk management and continuous improvement. We offer a safe, positive work environment, value and reward our staff and are committed to providing ongoing development and training. Strategy Implement and maintain an integrated strategic planning framework across Council, which embeds performance, financial and asset management principles.
Scenic Rim Regional Council Policy Register POLICY STATEMENT Part 3 of the Local Government Act 2009 requires Council to have a Revenue Policy as part of a system of financial management.
Section 169 of the Local Government Regulation 2012 states that a local government’s budget for each financial year must include a Revenue Policy.
Section 193 of the Local Government Regulation 2012 requires that Council’s Revenue Policy states: a) the principles that the local government intends to apply in the financial year for: (i) levying rates and charges (ii) granting concessions for rates and charges (iii) recovering overdue rates and charges (iv) cost-recovery methods b) if the local government intends to grant concessions for rates and charges, the purpose for the concessions; and c) the extent to which physical and social infrastructure costs for a new development are to be funded by charges for the development.
The Revenue Policy may state guidelines used for preparing the local government’s revenue statement and must be reviewed annually in line with adoption of the annual budget.
Revenue Principles Council’s rate setting and charging structures are based on the following principles, where applicable:
Equity; defined as ensuring the fair and consistent application of lawful rating and charging principles, without bias, taking account of all relevant considerations. Effectiveness/Efficiency; defined as meeting the financial, social, economic and environmental or other corporate objectives of the Council as stated in its long term plans or policies. Simplicity; to ensure widespread community or stakeholder understanding, and minimise perceived inequities and hidden costs, of a complex system. Sustainability; revenue decisions support the financial strategies for the delivery of infrastructure and services identified in Council’s long term planning.
These principles apply to the following activities: • setting rates and charges • levying rates and charges • recovering rates and charges • granting and administering rates and charges concessions • setting user-pays fees and charges • developer charges
Rates, fees and charges are to be determined and applied in accordance with Attachment A which forms part of the Revenue Policy.
Scenic Rim Regional Council Policy Register Page 2 of 10 Revenue Policy POLICY STATEMENT Concessions and Rebates Part 3 of the Local Government Act 2009 requires Council to have a Revenue Policy as Subject to the conditions determined in Council’s Revenue Statement, Council may part of a system of financial management. grant rebates on rates and charges to: • owner-occupiers who hold a current Totally and Permanently Incapacitated (TPI) Section 169 of the Local Government Regulation 2012 states that a local government’s Gold Card budget for each financial year must include a Revenue Policy. • not-for-profit community organisations • provide incentive for landowners entering into voluntary conservation covenants Section 193 of the Local Government Regulation 2012 requires that Council’s Revenue Policy states: Council may grant rebates on rates and charges to the following classes of land: a) the principles that the local government intends to apply in the financial year for: • dip and pump sites held separately from the balance of holdings or held (i) levying rates and charges separately by trustees (ii) granting concessions for rates and charges • land identified as Historic subdivisions under the Boonah Shire Planning Scheme effective 31 March 2006 (iii) recovering overdue rates and charges (iv) cost-recovery methods Discount In accordance with Section 130 of the Local Government Regulation 2012 Council will b) if the local government intends to grant concessions for rates and charges, the provide a discount on rates at the amount specified in Council’s Revenue Statement. purpose for the concessions; and c) the extent to which physical and social infrastructure costs for a new Interest development are to be funded by charges for the development. In accordance with Section 133 of the Local Government Regulation 2012 interest will be charged on overdue rates and charges at the amount specified in Council’s Revenue Statement. The Revenue Policy may state guidelines used for preparing the local government’s revenue statement and must be reviewed annually in line with adoption of the annual budget. SCOPE Revenue Principles The Revenue Policy applies to Council’s own source revenue including: Council’s rate setting and charging structures are based on the following principles, • General rates where applicable: • Separate rates and charges • Special rates and charges Equity; defined as ensuring the fair and consistent application of lawful rating and charging principles, without bias, taking account of all relevant considerations. • Utility charges Effectiveness/Efficiency; defined as meeting the financial, social, economic and • Fees and charges environmental or other corporate objectives of the Council as stated in its long term plans or policies. Simplicity; to ensure widespread community or stakeholder understanding, and DEFINITIONS minimise perceived inequities and hidden costs, of a complex system. Sustainability; revenue decisions support the financial strategies for the delivery of infrastructure and services identified in Council’s long term planning. Own Source Revenue; revenue or income generated by the entity such as rates, fees and charges. It does not include grants and contributions from other levels of These principles apply to the following activities: government. • setting rates and charges • levying rates and charges Rate; a charge primarily based upon the value of land as assessed by the Department of • recovering rates and charges Natural Resources and Mines. • granting and administering rates and charges concessions • setting user-pays fees and charges RESPONSIBILITIES • developer charges Policy Author Chief Finance Officer Policy Owner Chief Finance Officer Rates, fees and charges are to be determined and applied in accordance with Guidelines and procedures – Coordinator Rates Attachment A which forms part of the Revenue Policy. Attachment A: Revenue Guidelines Attachment B: Recovery of Overdue Rates and Charges Guidelines
Scenic Rim Regional Council Policy Register Page 2 of 10 Scenic Rim Regional Council Policy Register Page 3 of 10 Revenue Policy Revenue Policy Approved By:
SCENIC RIM REGIONAL COUNCIL 24 June 2015
Scenic Rim Regional Council Policy Register Page 4 of 10 Revenue Policy Approved By: ATTACHMENT A:
SCENIC RIM REGIONAL COUNCIL REVENUE GUIDELINES 24 June 2015 Rates and Charges The power to levy rates and charges is provided for under section 94 of the Local Government Act 2009.
General Rates A differential general rate will be levied on all rateable properties based on the value of the land as assessed by the Department of Natural Resources and Mines. The value of the land is either the site value (non-rural land) or the unimproved value (rural land) determined under the Land Valuation Act 2010.
Regardless of the value of the land, there will be a minimum contribution required from each ratepayer towards the overall running of the Council. This will be achieved by the application of minimum general rates.
Separate Rates and Charges Separate charges will be levied to generate the level of funds required to provide a particular service or activity where the benefit is shared equally by all parcels of land, regardless of their value. A separate rate will be imposed when Council considers that higher valued parcels of land will receive a greater benefit from the service or activity being funded. In cases where Council considers that all parcels of land will benefit to a particular degree, then a minimum separate rate may be applied.
Special Rates and Charges Special rates or charges will be levied to generate the level of funds required to provide a service or activity that Council considers will benefit specific parcels of land or occupiers of parcels of land. A special charge will be applied where Council considers that the owner of each parcel of land should contribute equally or in accordance with the degree of special benefit that Council considers each parcel of land or its occupier will receive. A special rate will be imposed where Council considers that higher valued properties will receive a greater benefit from the service or activity being funded. In cases where Council considers that all properties will benefit to a particular degree, then a minimum special rate may be applied.
Utility Charges In general, Council will be guided by the principle of user pays in the making of charges that relate to the provision of waste management services. Council will apply this principle in order to minimise the impact of rating on the efficiency of the local economy. Where possible, those receiving the benefits of a utility service will pay for what they receive in full through the relevant utility charge. Council will annually review its utility charges and other fees for service to ensure that revenues are keeping pace with the cost of providing the service.
Scenic Rim Regional Council Policy Register Page 4 of 10 Scenic Rim Regional Council Policy Register Page 5 of 10 Revenue Policy Revenue Policy Setting Rates and Charges Council identifies services where the cost of providing the service will be met by the consumer of that service. The cost of providing the service will include the cost of acquiring the service, the cost of providing the infrastructure or organisation to process and/or deliver the service and any associated overheads.
Individual consumers of a service cannot always be separately identified. For this reason there is a need for specific user charges to be supplemented by other general revenue sources.
The relevant components of Council rates and charges are based on a combination of specific user charges, a separate charge and a rate on the value of land to provide the most equitable and rational basis for raising revenue.
Rates and charges are determined after due consideration of the following: • Council’s legislative obligations; • The needs and expectations of the general community as determined by formal and informal consultation and survey processes; • The cost of maintaining existing facilities and necessary services; • The need for additional facilities and services; and • Equity.
Levying of Rates and Charges In making all rates and charges Council will have regard to the principles of: • Transparency; to inform the community of the basis of rates and charges and hence Council’s accountability; • Efficiency; creating a rating regime that is cost effective to administer; and • Flexibility; taking account of changes in the local economy.
In levying rates and charges Council will also: • Ensure levying, discount and refund processes are simple and efficient to administer; • Issue rate notices on a six monthly basis to take into account the financial cycle to which ratepayers are accustomed; • Ensure rate notices are simple to read and understand and contain all relevant information pertaining to the calculation of rates and charges; and • Offer flexible payment arrangements.
Concessions on Rates and Charges In applying concessions Council will: • Ensure the same treatment for ratepayers with similar circumstances; • Make clear the requirements necessary to receive concessions; • Acknowledge the contribution of not-for-profit community organisations; • Consider any application for the concession of rates and charges provided it meets the criteria contained in Part 10 of the Local Government Regulation 2012; • Be sufficiently flexible to respond to local economic issues; and • Make transparent the degree of subsidy when a user charge does not represent full cost recovery.
Scenic Rim Regional Council Policy Register Page 6 of 10 Revenue Policy Setting Rates and Charges If Council grants a concession to a class of ratepayers under Section 120 of the Local Council identifies services where the cost of providing the service will be met by the Government Regulation 2012 the purpose of the class concessions will be stated. consumer of that service. The cost of providing the service will include the cost of Consideration may also be given to Council granting a class concession in the event all acquiring the service, the cost of providing the infrastructure or organisation to process or part of Scenic Rim Regional Council is declared a natural disaster area by the State and/or deliver the service and any associated overheads. Government.
Recovery of Rates and Charges Individual consumers of a service cannot always be separately identified. For this reason there is a need for specific user charges to be supplemented by other general Council will exercise its rate recovery powers to reduce the overall rate burden on revenue sources. ratepayers and will also: • Ensure transparency by making clear the obligations of ratepayers and the The relevant components of Council rates and charges are based on a combination of processes used by Council in assisting them meet their obligations; specific user charges, a separate charge and a rate on the value of land to provide the • Ensure the processes used to recover outstanding rates and charges are simple to most equitable and rational basis for raising revenue. administer and cost effective; Rates and charges are determined after due consideration of the following: • Have regard to equity in the treatment for ratepayers in similar circumstances; • Council’s legislative obligations; • Have regard to capacity to pay in determining appropriate payment arrangements; • The needs and expectations of the general community as determined by formal and informal consultation and survey processes; • Exercise flexibility by responding where necessary to changes in the local economy; and • The cost of maintaining existing facilities and necessary services; • Adhere to the debt collection guidelines developed by the Australian Competition • The need for additional facilities and services; and and Consumer Commission. • Equity. Council requires payment of rates and charges within the specified period (i.e. the Levying of Rates and Charges discount period) and will pursue the collection of outstanding rates and charges In making all rates and charges Council will have regard to the principles of: diligently but with due regard for any financial hardship faced by ratepayers. Administrative processes will be used that allow for the payment of overdue rates and • Transparency; to inform the community of the basis of rates and charges and charges by payment arrangements and for the application of various actions for the hence Council’s accountability; recovery of overdue rates and charges. • Efficiency; creating a rating regime that is cost effective to administer; and • Flexibility; taking account of changes in the local economy. External Debt Recovery Costs Subject to Section 132(1)(b) of the Local Government Regulation 2012 and Uniform Civil In levying rates and charges Council will also: Procedure Rules 1999, Council will include relevant external debt recovery costs and legal costs in debts for which recovery is sought. • Ensure levying, discount and refund processes are simple and efficient to administer; • Issue rate notices on a six monthly basis to take into account the financial cycle to which ratepayers are accustomed; • Ensure rate notices are simple to read and understand and contain all relevant information pertaining to the calculation of rates and charges; and • Offer flexible payment arrangements.
Concessions on Rates and Charges In applying concessions Council will: • Ensure the same treatment for ratepayers with similar circumstances; • Make clear the requirements necessary to receive concessions; • Acknowledge the contribution of not-for-profit community organisations; • Consider any application for the concession of rates and charges provided it meets the criteria contained in Part 10 of the Local Government Regulation 2012; • Be sufficiently flexible to respond to local economic issues; and • Make transparent the degree of subsidy when a user charge does not represent full cost recovery.
Scenic Rim Regional Council Policy Register Page 6 of 10 Scenic Rim Regional Council Policy Register Page 7 of 10 Revenue Policy Revenue Policy Fees and Charges To minimise the general rate burden on ratepayers, Council will attempt to recover costs through charging fees for the use of services and facilities where it is administratively simple and efficient to do so.
In setting charges for local government services and facilities, where Council is the sole supplier, prices will be based on the principle of recovering the cost to Council of providing the service or facility. In some circumstances, it may be appropriate to set charges for services below full cost recovery in order to achieve social, economic or environmental goals.
Council will apply the principle of full cost recovery in setting charges for services and facilities that might be supplied by other parties, including community or not-for-profit organisations.
Cost Recovery Fees Section 97 of the Local Government Act 2009 allows a local government to fix a cost recovery fee under a local law or a resolution.
A cost recovery fee may be for: • An application for the issue or renewal of a licence, permit, registration or other approval under a Local Government Act (an application fee) • Recording a change of ownership of land • Giving information kept under a Local Government Act • Seizing property or animals under a Local Government Act • The performance of another responsibility imposed on the local government under the Building Act or the Plumbing and Drainage Act
A cost recovery fee must not be more than the cost to the local government of taking the action for which the fee is charged.
Section 262(3)(c)of the Local Government Act 2009 allows a local government to charge for a service or facility, other than a service or facility for which a cost recovery fee may be fixed (non cost recovery fee).
A list of Council’s fees and charges is maintained in a Register of Fees and Charges.
Developer Charges Council’s Infrastructure Charges Resolution and policies support the funding of the costs of infrastructure for new development through charges from development, to the extent of physical and social infrastructure costs, in accordance with the relevant planning schemes. These include, but are not limited to, roads, parks, community facilities, car parking and stormwater.
A list of developer charges under Council's Infrastructure Charges Resolution is maintained on Council’s website and Register of Fees and Charges respectively.
Scenic Rim Regional Council Policy Register Page 8 of 10 Revenue Policy Fees and Charges ATTACHMENT B: To minimise the general rate burden on ratepayers, Council will attempt to recover costs through charging fees for the use of services and facilities where it is RECOVERY OF OVERDUE RATES AND CHARGES GUIDELINES administratively simple and efficient to do so.
In setting charges for local government services and facilities, where Council is the sole Recovery Actions supplier, prices will be based on the principle of recovering the cost to Council of The following actions will be used in the recovery of overdue rates and charges: providing the service or facility. In some circumstances, it may be appropriate to set Action Response Authority charges for services below full cost recovery in order to achieve social, economic or Action Timing Severity Comment environmental goals. Type Time Level 1 7 days after First Low 14 days Further action Rates expiration of Reminder suspended if Debtors Council will apply the principle of full cost recovery in setting charges for services and the discount Notice ratepayer agrees Officer facilities that might be supplied by other parties, including community or not-for-profit period for and maintains an organisations. each rate acceptable generation payment arrangement Cost Recovery Fees 2 21 days after External Medium 7 days Further action Rates Section 97 of the Local Government Act 2009 allows a local government to fix a cost expiration of Agency suspended if Debtors recovery fee under a local law or a resolution. the discount Demand ratepayer agrees Officer period for Letter and maintains an each rate acceptable A cost recovery fee may be for: generation payment • An application for the issue or renewal of a licence, permit, registration or other arrangement approval under a Local Government Act (an application fee) 3 7 days after External Medium 2 days Further action Rates issue of the Agency suspended if Co- • Recording a change of ownership of land external Final ratepayer agrees ordinator • Giving information kept under a Local Government Act agency Demand and maintains an demand Letter acceptable • Seizing property or animals under a Local Government Act letter payment • The performance of another responsibility imposed on the local government arrangement under the Building Act or the Plumbing and Drainage Act 4 Ongoing External High 28 days Enforcement Chief Agency and suspended if Finance Magistrates ratepayer agrees Officer A cost recovery fee must not be more than the cost to the local government of taking Court and maintains an the action for which the fee is charged. Action acceptable payment arrangement Section 262(3)(c)of the Local Government Act 2009 allows a local government to charge 5 Section Sale of High Within Full payment Council for a service or facility, other than a service or facility for which a cost recovery fee 140(1)(c) of Land legislative including costs may be fixed (non cost recovery fee). the Local timeframe required to cease Government action A list of Council’s fees and charges is maintained in a Register of Fees and Charges. Regulation 2012*
Developer Charges *Some or all of the overdue rates or charges have been overdue for at least: Council’s Infrastructure Charges Resolution and policies support the funding of the costs (i) generally—3 years; or of infrastructure for new development through charges from development, to the (ii) if the rates or charges were levied on vacant land or land used only for extent of physical and social infrastructure costs, in accordance with the relevant commercial purposes, and the local government has obtained judgment for the planning schemes. These include, but are not limited to, roads, parks, community overdue rates or charges—1 year; or facilities, car parking and stormwater. (iii) if the rates or charges were levied on a mining claim—3 months.
A list of developer charges under Council's Infrastructure Charges Resolution is Actions 1 to 4 aim to encourage the ratepayer to either pay the overdue rates and maintained on Council’s website and Register of Fees and Charges respectively. charges in full or enter into an acceptable payment arrangement. Action 5 requires the ratepayer to pay all overdue rates and charges to cease action.
Council will have regard to individual ratepayer circumstances, including whether there is a genuine case for financial hardship relief, before taking legal or sale of land action. The amount of outstanding debt will also be considered before taking legal action.
Scenic Rim Regional Council Policy Register Page 8 of 10 Scenic Rim Regional Council Policy Register Page 9 of 10 Revenue Policy Revenue Policy Payment Arrangements Council will allow property owners who are unable to pay their rates by the due date to enter into an arrangement to pay by instalments according to an agreed schedule, with no recovery action being taken while the arrangement is being maintained. However, interest will be charged on any arrears of rates.
An acceptable payment arrangement will generally result in all overdue rates and charges being paid in full by the end of the half year period in which the payment arrangement is made. In the event that a payment arrangement is not maintained within the agreed terms, the ratepayer will be offered an opportunity to make a revised payment arrangement. Failure to make and maintain an acceptable payment arrangement will result in recovery actions continuing.
Payment Methods Ratepayers who enter into agreed payment arrangements will be offered all available payment options that Council accepts for rate payments.
Financial Hardship Relief from payment of rates on the grounds of financial hardship will only apply to a natural person who uses the rated property as their principal place of residence. Applications for relief on the grounds of financial hardship must be supported with evidence that the hardship exists and may take the form of payment arrangements that would not ordinarily be viewed as acceptable arrangements or deferment of payment of rates. Interest will be charged on any overdue rates or charges unless waived by way of a Council resolution.
Reporting A report on overdue rates and charges will be provided to Council on a monthly basis.
Approved By:
SCENIC RIM REGIONAL COUNCIL 24 June 2015
Scenic Rim Regional Council Policy Register Page 10 of 10 Revenue Policy Payment Arrangements Council will allow property owners who are unable to pay their rates by the due date to enter into an arrangement to pay by instalments according to an agreed schedule, with FINANCE no recovery action being taken while the arrangement is being maintained. However, FINANCIAL MANAGEMENT interest will be charged on any arrears of rates. Policy Number: FI01.14CP
An acceptable payment arrangement will generally result in all overdue rates and charges being paid in full by the end of the half year period in which the payment arrangement is made. In the event that a payment arrangement is not maintained COUNCIL POLICY: within the agreed terms, the ratepayer will be offered an opportunity to make a DEBT revised payment arrangement. Failure to make and maintain an acceptable payment arrangement will result in recovery actions continuing.
Payment Methods Date Adopted: 23 June 2011 Ratepayers who enter into agreed payment arrangements will be offered all available Committee Reference: Special Meeting; 23 June 2011; Item Number 2.21 payment options that Council accepts for rate payments. Date Amended: 13 July 2012; 20 June 2013; 3 July 2014; 24 June 2015 Financial Hardship Contact officer: Chief Finance Officer Relief from payment of rates on the grounds of financial hardship will only apply to a natural person who uses the rated property as their principal place of residence. Next review date: 30 June 2016 Applications for relief on the grounds of financial hardship must be supported with File Reference: 12/13/002; 04/15/004 evidence that the hardship exists and may take the form of payment arrangements that would not ordinarily be viewed as acceptable arrangements or deferment of payment Related Policies/Local Laws/Legislation: of rates. Interest will be charged on any overdue rates or charges unless waived by way Local Government Act 2009 of a Council resolution. Local Government Regulation 2012 Reporting Statutory Bodies Financial Arrangements Act 1982 A report on overdue rates and charges will be provided to Council on a monthly basis. Statutory Bodies Financial Arrangements Regulation 2007 Statutory Bodies Financial Arrangements Act 1982 Operational Guidelines Approved By: Related Documents: Nil SCENIC RIM REGIONAL COUNCIL 24 June 2015 OBJECTIVES
The objectives of this policy are: • To outline parameters for borrowing and debt levels within Council’s annual budget and long-term financial forecast • To ensure compliance with the Local Government Act 2009 and Local Government Regulation 2012
Corporate Plan: Priority Area Organisational Sustainability Council strives to be a high performing and financially sustainable organisation with robust governance structures based on the principles of risk management and continuous improvement. We offer a safe, positive work environment, value and reward our staff and are committed to providing ongoing development and training. Strategy Implement and maintain an integrated strategic planning framework across Council, which embeds performance, financial and asset management principles.
Scenic Rim Regional Council Policy Register Page 10 of 10 Revenue Policy Scenic Rim Regional Council Policy Register POLICY STATEMENT Division 2 of the Statutory Bodies Financial Arrangements Act 1982 provides that Council may borrow funds provided it has the Treasurer’s approval and the borrowings are in Australian money and undertaken in Australia.
Part 3 of the Local Government Act 2009 requires Council to have a Debt Policy as part of a system of financial management.
Section 192 of the Local Government Regulation 2012 requires that Council’s Debt Policy states: a) the new borrowings planned for the current financial year and the next 9 financial years; and b) the period over which the local government plans to repay existing and new borrowings.
Section 7 of the Statutory Bodies Financial Arrangements Act 1982 Operational Guidelines provides that there is general approval granted by the Treasurer for any borrowings from Queensland Treasury Corporation (QTC) if they have been approved by the Department of Local Government. All of Council’s current and future borrowing arrangements are with QTC.
At least on annual basis, and in accordance with section 171 of the Local Government Regulation 2012, Council will consider its long-term financial forecast before planning new borrowings. Council’s borrowing program will be based on a long-term sustainable financial position and will be only undertaken where Council can demonstrate that repayments can be comfortably met.
Borrowings are only available for capital expenditure and not for use to fund recurrent expenditure and operational activities of the Council. Where the Council raises funds from new borrowings, the funds will only be used for the purpose for which the loan was raised. If a borrowing is undertaken and the final project cost is less than budget, resulting in unexpended loan funds, these funds may be reallocated to eligible projects by resolution of Council.
In borrowing for infrastructure, the term of the loan shall not exceed the finite life of the related asset.
Planned borrowings will be identified in Council’s budget and long-term financial forecast. This condition may be waived in circumstances where an emergency or urgent situation requires the use of borrowings and those borrowings comply with all other policy conditions.
Scenic Rim Regional Council Policy Register Page 2 of 4 Debt Policy POLICY STATEMENT New Borrowings Division 2 of the Statutory Bodies Financial Arrangements Act 1982 provides that New borrowings identified in Council’s long-term financial forecast are as follows: Council may borrow funds provided it has the Treasurer’s approval and the borrowings Financial are in Australian money and undertaken in Australia. Repayment Year Ending Amount Purpose Period 30 June Part 3 of the Local Government Act 2009 requires Council to have a Debt Policy as part 2016 $3,000,000 Capital Works required for Bridges 20 yrs of a system of financial management. $2.0M Capital Works required for Bridges 2017 $3,357,000 $1.357M Capital Works required for Lake 20 yrs Moogerah Caravan Park Section 192 of the Local Government Regulation 2012 requires that Council’s Debt Capital Works required for Lake Moogerah 2018 $225,000 20 yrs Policy states: Caravan Park $0.8M Capital Works required for Lake a) the new borrowings planned for the current financial year and the next 9 20 yrs Moogerah Caravan Park financial years; and 2020 $3,506,000 $2.7M Capital Works required for new 6 yrs b) the period over which the local government plans to repay existing and new landfill cell at Bromelton borrowings. Capital Works required for Lake Moogerah 2021 $150,000 20 yrs Caravan Park Section 7 of the Statutory Bodies Financial Arrangements Act 1982 Operational Existing Borrowings Guidelines provides that there is general approval granted by the Treasurer for any Existing borrowings are shown in the following table: borrowings from Queensland Treasury Corporation (QTC) if they have been approved by the Department of Local Government. All of Council’s current and future borrowing Principal arrangements are with QTC. Year Amount Repayment Year to be Purpose Outstanding Borrowed Borrowed Period Repaid 31/03/2015 At least on annual basis, and in accordance with section 171 of the Local Government Beaudesert Shire Council - Schedule Regulation 2012, Council will consider its long-term financial forecast before planning Transferred on new borrowings. Council’s borrowing program will be based on a long-term sustainable Amalgamation $2,960,590 Works 2007/08 20 yrs 2029 $610,274 financial position and will be only undertaken where Council can demonstrate that 2008 ($2.213M transferred to bulk water authority on repayments can be comfortably met. 30 June 2008) Scenic Rim RC - 2011 $3,500,000 20 yrs 2028 $2,950,910 Borrowings are only available for capital expenditure and not for use to fund recurrent Capital Works 2011 expenditure and operational activities of the Council. Where the Council raises funds Scenic Rim RC - 2012 $3,000,000 20 yrs 2031 $2,652,924 from new borrowings, the funds will only be used for the purpose for which the loan Capital Works 2012 was raised. If a borrowing is undertaken and the final project cost is less than budget, Scenic Rim RC - 2013 $4,000,000 20 yrs 2033 $3,678,359 resulting in unexpended loan funds, these funds may be reallocated to eligible projects Capital Works 2013 by resolution of Council. Scenic Rim RC - 2014 $4,000,000 20 yrs 2034 $3,817,686 Capital Works 2014 Scenic Rim RC - In borrowing for infrastructure, the term of the loan shall not exceed the finite life of 2015 $4,000,000 20 yrs 2035 $0* the related asset. Capital Works 2015 *To be drawn down during June 2015
Planned borrowings will be identified in Council’s budget and long-term financial Overdrafts forecast. This condition may be waived in circumstances where an emergency or urgent Council has no overdraft facilities. situation requires the use of borrowings and those borrowings comply with all other policy conditions.
SCOPE
This policy applies to all borrowings undertaken by Council.
Scenic Rim Regional Council Policy Register Page 2 of 4 Scenic Rim Regional Council Policy Register Page 3 of 4 Debt Policy Debt Policy DEFINITIONS
Borrowings; those funds which Council obtains from external sources by loans, overdraft or other financial arrangements that impose on Council an obligation for repayment.
RESPONSIBILITIES
Policy Author Chief Finance Officer Policy Owner Chief Finance Officer Guidelines and procedures Nil
Approved By:
SCENIC RIM REGIONAL COUNCIL 24 June 2015
Scenic Rim Regional Council Policy Register Page 4 of 4 Debt Policy DEFINITIONS
Borrowings; those funds which Council obtains from external sources by loans, overdraft or other financial arrangements that impose on Council an obligation for repayment.
RESPONSIBILITIES
Policy Author Chief Finance Officer Policy Owner Chief Finance Officer Guidelines and procedures Nil
Approved By:
SCENIC RIM REGIONAL COUNCIL 24 June 2015
Scenic Rim Regional Council Policy Register Page 4 of 4 Debt Policy COMMUNITY FEEDBACK Council welcomes comments, suggestions and questions regarding this document from the community
Write: Chief Executive Officer Scenic Rim Regional Council PO Box 25 Beaudesert QLD 4285
Email: [email protected]
Phone: 07 5540 5111
Fax: 07 5540 5103
Website www.scenicrim.qld.gov.au
MEDIA ENQUIRIES Should be directed to Council’s Communication and Engagement Section
Phone: 07 5540 5339
Email: [email protected]