SHIRE OF BEVERLEY SHIRE OF YORK SHIRE OF BEVERLEY ANNUAL BUDGET 2013/14 Our vision - Bringing People Together Contents President's Introduction Chief Executive Officer’s summary Budget processes Overview 1. Linkage to the Plan for the Future 2. Activities, initiatives and key strategic activities 3. Budget influences Budget analysis 4. Analysis of operating budget 5. Analysis of budgeted cash position 6. Analysis of capital budget Long term strategies 7. Rating strategy 8. Other strategies Statutory Budget For The Year 2013-14 · Budget Operating Statement · Budget Statement of Financial Activity · Budget Rate Setting Statement · Budget Statement of Cashflow · Budget Statement of Rating Information · Notes to and Forming Part of the Annual Budget · Schedule of Fees and Charges · Budget Details President’s Introduction The York Shire Council provides this budget to the community as a continuation of the sound planning and financial management for the necessary asset preservation, asset expansion and the service delivery needs of our community. This budget is the first in the new regime of Integrated Planning required from all local governments to take into account the Community Strategic Plan, Asset Management Plan, 10 Year Financial Plan, Corporate Plan and Workforce Plan. These plans allow Council to plan and manage for both the short and long term based on sustainability principles to develop and grow our Shire. Again there is a balance of capital and operational expenditure in the budget with a primary emphasis on asset preservation. The rate increase of 5.9% incorporates the Consumer Price Index, the Construction Price Index and projected increases for fuel, water and power. This budget also includes a significant amount of government funds to be sourced and used if the proposed merger of the Shires of York, Quairading, Cunderdin and Tammin proceeds as the State Government has committed funds to meet transition costs. Funds allocated for capital expenditure is as follow: Purchase Land & Buildings $ 3,517,660.00 Infrastructure Assets - Roads $ 2,658,458.00 Infrastructure Assets - Recreation Facilities $ 433,645.00 Infrastructure Assets - Other $ 61,000.00 Purchase Plant and Equipment $ 1,177,227.00 Purchase Furniture and Equipment $ 129,600.00 Major projects are: Child Centre Facility $ 600,000.00 Regional Cultural Centre Development $ 1,800,000.00 Forrest Oval Infrastructure $ 317,668.00 The rates levied for 2013/14 represent an increase of 5.9% over the previous year and whilst the increase is above the inflation estimates, the additional funds will assist in maintaining services and infrastructure. Special thanks are extended to the staff who have worked timelessly to produce this balanced budget, as this document reflects highly on their financial management capacities and expertise. Cr A S Boyle Shire President Chief Executive Officer’s Summary Council has prepared the Annual Budget for the 2013/14 financial year which seeks to balance the demand for services and infrastructure with the community’s capacity to pay. Key budget information provided below is about the rates, operating result, service levels, cash and investments, capital works, financial position and key strategic activities of the Council. 1. Rates rate increase 10 8.8 9 8 7.2 7.23 6.7 7 5.9 6 5 4 rate increase 3 2 1 0 2009/10 2010/11 2011/12 2012/13 B2013/14 It is proposed that general rates increase by 5.9% for the 2013/14 year, raising total rates of $4.0 million. The minimum rates are set at $850.00 GRV pa and $1030.00 UV pa and will yield $706,370. 2. Operating result operating result 5 4.411 4.5 4 3.5 2.99 3 2.63 2.5 operating 2 result 1.5 1.04 1.075 1 0.5 0 2009/10 2010/11 2011/12 2012/13 B2013/14 The expected operating result for the 2013/14 year is expected to increase to $4.411 million. This is $3.336 million more then 2012/13 figures. 3. Services net service cost 14 11.818 12 10 8.27 8.166 7.54 7.549 8 net service cost 6 4 2 0 2009/10 2010/11 2011/12 2012/13 B2013/14 The cost of services to be delivered to the community for the 2013/14 year is expected to be $11.8 million, a significant increase when compared to the previous year. 4. Cash and investments cash & investments 4 3.455 3.5 2.94 3 2.7 2.5 2.2 1.88 2 cash & investments 1.5 1 0.5 0 2009/10 2010/11 2011/12 2012/13 B2013/14 Cash and investments are expected to decrease by $1.58 million during the year to $1.88 million as at 30 June 2014. This is due mainly to the capital works program expected to be completed in 2013/14. 5. Capital works capital works 9 8.39 7.977 8 7 6 4.54 5 4.28 capital works 4 3 2.385 2 1 0 2009/10 2010/11 2011/12 2012/13 B2013/14 The capital works program for the 2012/13 year is expected to be $7.98 million. Of the $7.98 million of capital funding required, $.833 million will come from Council operations, $6.089 million from external grants, and from reserves $1.055 million. The capital expenditure program has been set and prioritised based on needs and sound business cases for each project. The increase in funding is mainly due to additional government 6. Financial position working capital 4 3.46 3.5 3 2.5 2 working capital 1.44 1.435 1.334 1.381 1.5 1 0.5 0 2009/10 2010/11 2011/12 2012/13 B2013/14 The net assets (net worth) is expected to increase slightly in 2013-14. 7. Strategic objectives 3 2.658 2.5 2 1.8 1.5 2013/14 1 0.6 0.5 0.317 0 Child Centre Facility Regional Cultural Centre Forrest Oval Infrastructure Roads Infrastructure The Annual Budget includes a range of activities and initiatives to be funded that will contribute to achieving the strategic objectives. The above graph shows the level of funding allocated in the budget to achieve the strategic objectives for the 2013/14 year. The Annual Budget has been developed so that it is financially responsible. More detailed budget information is available throughout this document. R P Hooper Chief Executive Officer Budget Processes This section lists the budget processes to be undertaken in order to adopt the Annual Budget in accordance with the Local Government Act 1995 and its Regulations. The preparation of the budget begins with Officers preparing the operating and capital components of the annual budget. A draft consolidated budget is then prepared and various iterations are considered by Council at informal briefings. A ‘proposed’ budget is prepared in accordance with the Act and submitted to Council for approval. The budget is required to be adopted by 31 August in each year. The key dates for the budget process are summarised below: bp Timing 1. Officers prepare operating and capital estimates for inclusion in the budget May-13 2. Council considers draft budget at informal briefings Jun - Jul 2013 3. Proposed budget submitted to Council for approval Jul-13 4. Copy of adopted budget submitted to the Department Aug-13 1. Linkage to the Council Plan This section describes how the Annual Budget links to the aspirations of the Strategic Community Plan and the initiatives detailed in the Corporate Business Plan which is supported by the Shire's Long Term Financial Plan, Asset Management Plans and Workforce Plan which are expected to be finalised in August 2013. This framework guides the Council in identifying community needs and aspirations over the long term (Strategic Plan), medium term (Corporate Business Plan) and short term (Annual Budget) and then holding itself accountable (Audited Statements). 1.1 Strategic planning framework The new Integrated Planning and Reporting Framework for local governments is a significant initiative put in place by Government to strengthen the capacity for Councils to plan strategically for their communities. Council is working through the requirements. The Strategic Plan was adopted by the Council in May 2012 and all the other Plans are to be finalised shortly. The Annual Budget is framed by taking into account the activities and initiatives which contribute to achieving the strategic objectives specified in the Plan. The timing of each component of the planning framework is critical to the successful achievement of the planned outcomes. 1.2 Our purpose Our vision - Bringing People Together Our Shire will be: - A place to visit, work, play and rest; - A place of vibrancy and energy, but one of tranquillity and safety; - A place of growth, where local businesses find opportunities and thrive; - A place of history and cultural interests, where past history is valued, building a sense of permanency and pride; and - A place of community, where lifestyle choices are important and where community matters. Our aim: - To manage growth, economically and socially, in supporting a progressive vibrant community. Our Goals Social: - Manage population growth, through planned provision of services and infrastructure. - Strengthen community interactions and a sense of a united, cohesive and safe community. - Build and strengthen community, culture, vibrancy and energy. Environmental: - Maintain and preserve the natural environment during growth, enhancing the 'rural' nature of York and ensuring a sustainable environment for the future. - Support sustainable energy and renewable resource choices. Economic: - Build population base through economic prosperity. - Value, protect and preserve our heritage and past. - Grow the economic base and actively support local businesses and service provision. Community Priorities Against Key Areas Social: Building a Sense of Community - Our community will be inclusive and interactive, where people feel safe and are welcomed.