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Budget and Operational Plan 2018/19

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Budget and Operational Plan 2018/19 Livingstone Shire Council Budget and Operational Plan 2018/19 1 Table of Contents Part 1: Overview of Budget and Operational Plan 1.1 Mayor’s Message.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..2 Budget Overview. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .6 Operational Services. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .7 Major Projects delivered in 17/18. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..8 Capital Works. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 9 Budget at a Glance . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .10 1.2 Preamble .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 12 1.3 Corporate Planning Framework . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..13 1.4 Corporate Plan Goals and Key Strategies . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..14 1.5 Services Provided to the Community. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .19 1.6 Measuring Achievement of the Budget and Operational Plan.. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .20 Part 2: Annual Operational Plan 2018-2019 2.1 Introduction . .. .. .. .. .. .. .. 22 2.2 Operational Key Performance Indicators . .. .. .. .. .. .. .. 24 Part 3: Revenue and Rating Strategy 2018-2019 3.1 Revenue Policy .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .37 3.2 Revenue Statement.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..35 3.3 Rates, Rebates and Remissions Policy . .. .. .. .. .. .. .. 75 Part 4: Budget 2018-2019 4.1 Budget Principles .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..82 4.2 Strategic Financial Parameters .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .85 4.3 Significant Influences .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 89 4.4 Key Assumptions of the Long Term Financial Forecast .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .90 4.5 Financial Statements.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 91 4.5.1 Statement of Income and Expenditure .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 92 4.5.2 Statement of Financial Position .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..93 4.5.3 Statement of Cash Flows .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 94 4.5.4 Statement of Changes in Equity .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .95 4.5.5 Measures of Financial Sustainability .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..96 4.6 Asset Management.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..99 4.6.1 Capital Works Program - Summary by Asset Class .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..101 4.6.2 Capital Works - Source of Capital Funds .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 102 4.6.3 Long Term Capital Works Program.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .105 4.7 Financial the Capital Works Program .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..113 Part 5: Financial Management Policies 2018-2019 5.1 Debt Policy .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 115 5.2 Investment Policy .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..118 Part 6: Commerical Business Unit Activities 2018-2019 6.1 Commentary on Commercial Business Activities .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 124 6.2 Commercial Business Activities Estimated Activity Statement.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..125 Part 7: Appendices 7.1 Estimated Financial Position as at 30 June 2018.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..127 7.2 Glossary.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .130 Overview e n O t r a P Mayor’s Message LIVINGSTONE Shire Council’s 2018-19 Budget is the sixth budget this Council has brought down since Livingstone residents regained their independence in 2014. A culmination of months of extensive workshops between Councillors, the senior management team and key departmental officers this budget is both prudent and financially responsible in all respects. I would also like to acknowledge the exceptional input of our very capable Deputy Mayor Nigel Hutton in helping shape this budget. In his capacity as Chairman the Planning, Finance, Innovation and Business Excellence Advisory Committee as well as the leadership role in Chairing the Audit, Risk and Business Improvement Committee Cr Hutton’s contribution has been outstanding. While the budget has an overarching focus on consolidation and long-term financial sustainability, it is also very much focussed on maintaining Council’s ‘whole of Shire’ commitment to the highest possible levels of affordable service delivery for our community. Building on the solid foundation of previous budgets this budget will also ensure Council can continue to appropriately maintain its assets, and be well positioned to continue to deliver the necessary future capital works and facilities our community needs and expects. In bringing down this budget it is appropriate to reflect on the necessary and deliberate strategies of previous budgets. Those strategies were focussed on regaining the Shire’s economic momentum lost through the forced amalgamation process, meeting the significant cost burden imposed on our community in regaining our independence and the subsequent imperatives of reconstruction of existing and major new infrastructure following Tropical Cyclone Marcia. In taking a well-considered and pro-active strategic approach Council was able to set a clear vision for our future and secure over $120 million in State and Federal funding to help deliver more than $227 million of critical trunk infrastructure and major job-creating economic development projects. This is an outstanding result given the total combined increase in overall borrowings to deliver those extraordinary $227 million in capital works over the 4 year period has been only $9 million. 2 This is remarkable achievement well above and beyond what would be considered possible for a Council of our size, especially when put in the context of working through the combined challenges and impacts of de-amalgamation and five declared weather events that have impacted on our Shire. Projects completed or still in train have ranged from major strategic infrastructure like Panorama Drive Statue Bay reconstruction and waste-water facilities along with tourism infrastructure, foreshore and town centre redevelopments in both Yeppoon and Emu Park, Centenary of Anzac Precinct, The Gateway Business and Industry Precinct, Capricorn Coast Homemakers Centre, a dedicated Disaster Management and Community Resilience Training Hub as well as major integrated sports facilities at Barmaryee and Emu Park, and shire-wide community playground, recreation and parkland upgrades. With the economic and community benefits of these major projects now progressively flowing through, Council’s focus on consolidation through the 2018-19 budget is both timely and well-considered. Capital Expenditure Council’s Capital Works Program for the 2018-19 budget is $48.3million, once again with a significant proportion amounting to $14.6million secured from State and Federal funding sources. Major projects on track to be delivered during 2018-19 include: » Yeppoon Sewage Treatment Plant Augmentation - $14.1m » Emu Park Village & Foreshore Revitalisation - $2.9m » Capricorn Coast Memorial Gardens - $2.9m » 2.9km shared pathway along Scenic Highway – $2.3m » Completion of civil works for the Homemaker
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