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View Barcoo Shire Council's 2020 BARCOO SHIRE COUNCIL BUDGET 2020‐2021 BUDGET DOCUMENTS Financial Policies & Operational Plan 2020-2021 For consideration at the Special (Annual Budget) Meeting on 5 August 2020 BARCOO SHIRE COUNCIL BUDGET 2020‐2021 Contents 1. Budget Overview.................................................................................................................................. 3 2. Our Vision, Mission, Priorities & Core Values ........................................................................................ 6 3. Revenue Policy ..................................................................................................................................... 7 4. Revenue Statement ............................................................................................................................ 13 5. Revenue & Expenditure Comparison ................................................................................................... 28 6. 10 Year Projections 7. Statement of Comprehensive Income ................................................................................................. 42 8. Statement of Financial Position .......................................................................................................... 44 9. Statement of Changes in Community Equity........................................................................................ 46 10. Statement of Cash Flows .................................................................................................................... 47 11. Capital Works Plan ............................................................................................................................. 48 12. Sustainability Ratios ........................................................................................................................... 51 13. Debt & Borrowing Policy .................................................................................................................... 52 14. Loan Schedules .................................................................................................................................. 54 15. Investment Policy ............................................................................................................................... 55 16. Appendixes ........................................................................................................................................ 59 1. Fees & Charges Schedule 2019‐2020 .............................................................................................. 60 2. Corporate Plan 2016‐2021 ............................................................................................................. 81 3. Operational Plan 2019‐2020......................................................................................................... 115 BARCOO SHIRE COUNCIL BUDGET 2020‐2021 Budget Overview BUDGET OVERVIEW The 2020/21 Budget has been prepared on a bottom up basis with responsible fiscal management in mind and a full awareness of Council’s current financial position. The major projects impacting on Council’s bottom line this financial year will be flood recovery works and a plant replacement program, some of which has been held over from the 2019/20 financial year due to a lack of funding. The 2020/21 Budget year will be no different to others, in that Council will be faced with having to exercise tight control over its spending. Whilst significant funding is expected for flood repair works, these monies will be targeted to specific projects. Council will still need to carefully monitor its general cash reserves in order to meet other capital obligations under the roadworks, plant replacement and asset renewal programs. The annual increase in rates revenue has been limited to 2.5% for all categories. Council is cognisant of the economic times being experienced by ratepayers within the shire, and has sought to keep rate rises to a minimum while attempting to source government funding for projects where possible. In this vein, Council has been successful in attracting a pleasing amount of federal and state funding for a number of much-needed projects within the shire. Some of these projects and the associated funding are set out in the project list below. A comprehensive list of all projects is set out within the budget papers. Council has also increased the minimum charges for all rating categories by the same 2.5% amount. With these comments in mind the 2020/21 financial year has an operational deficit of $8.2M, however when depreciation of $7.6M Council has a shortfall of cash of approximately $600K of cash which is due to funded programmes for this financial year being received in past years. This is a very sobering thought and obviously refocuses your attention on the burning issue of financial sustainability in local government particularly west of the Great Dividing Range in Queensland. At the end of June 2020, Council’s accumulated funds, amounted to $11,855M. However, this will be impacted this year with Council’s commitment to projects that have either commenced or been funded with grants and matching revenue. In line with its general approach, Council has committed that if the supporting grant funding is not received, the projects will not progress, thus reducing the impact on our funds and providing for responsible management of our position. Council is also mindful of the risk in carrying large debt, particularly when our own sourced revenue is low, and other revenue streams are subject to large variations in road works contracts and competitive government grants. We currently have one rural electrification loan of approximately $25.9K which is forecast to be repaid by 15 December 2021. Whilst there is opportunity for Council to borrow for large projects and spread this cost over the life of the asset, Council wishes to ensure these type of projects are funded from cash. Budget Document Financial Policies & Operational Plan 2020-2021 Page 3 of 130 BARCOO SHIRE COUNCIL BUDGET 2020‐2021 Council believes that we all have to live within our means, and whilst debt is a valid method of financing assets that have a future value and can be sold to realise that value, it is also passing on a debt to future councils and members of the community. Therefore there is significant support from Council to continually review our operations, and look towards doing our business more efficiently, so as to capitalise on some of these savings. With modern technology, communications, improved vehicle maintenance requirements and better opportunity to upskill our employees, there is opportunity to save costs within our organisation through good management and good governance. It is incumbent on Council and senior management to ensure our staff has the skills and knowledge to support the vision of Council into the future. We are looking forward to another progressive year for Council, but we must acknowledge that the opportune years of continued grant funding and Disaster Recovery Funding Arrangements (DRFA) works are potentially receding, and we must look to other ways to fund our future. SOME OF THE MAJOR PROJECTS FOR 2020/21 Description Project cost Government Funding Windorah Kerbing & Channelling $280,000 $167,000 Wallace Street, Windorah Widening $110,000 0 Flood Damage Repair Work 2019 $9,000,000 $8,550,000 2020 $1,000,000 $950,000 Road Program Maintenance – Council funded $900,000 Roads to Recovery $1,065,813 $1,065813 Windorah Water Projects Raw Water Storage Tank $315,000 $315,000 Water Treatment Plant $2,000,000 $1,073,542 McPhellamys Crossing $747,112 $747,112 Stonehenge Water Treatment Plant $150,000 $100,000 Jundah Hall Amenities $250,000 $200,000 Jundah Information Centre Refurbishment $150,000 $100,000 Connemarra Bridge Replacement $460,000 $276,000 Stonehenge Tennis Court Renewal & Practice Wall $100,000 100,000 Budget Document Financial Policies & Operational Plan 2020-2021 Page 4 of 130 BARCOO SHIRE COUNCIL BUDGET 2020‐2021 Operational Expenditure Budget Graph and Details Operational Budget Executive Operational 933,612 Corporate Services 2,164,173 Community Development 3,569,617 Works and Services 15,637,278 Land Water & Animals 1,007,351 TOTAL OPERATIONAL BUDGET 23,312,030 Budget Document Financial Policies & Operational Plan 2020-2021 Page 5 of 130 BARCOO SHIRE COUNCIL BUDGET 2020‐2021 Our Vision, Mission, Priorities, & Core Values OUR VISION Barcoo Shire: where people, lifestyle, business and the natural environment flourish. OUR MISSION To provide quality lifestyles for the people of our shire by: • committing to the objectives of our corporate plan • supporting our communities • embracing innovation • creating and taking advantage of opportunities • being a leader in local government and our region. OUR PRIORITIES In carrying out our mission, our priorities are: • our people • our children’s future • the wellbeing and growth of our communities • the responsible and sustainable development of our shire • the uniqueness of our shire and the individuality of our towns • the integrity of our natural assets • our cultural, social and natural history • education and skills development • responsible governance • regional cooperation. OUR CORE VALUES How we accomplish our mission is as important as our mission itself. Fundamental to achieving success are the following core values: Quality service We value integrity and transparency. Excellence We value the pursuit of excellence by our management and staff. Innovation We value creativity
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