Kingborough Council Annual Plan 2018/19 Table of Contents Mayor’s Introduction 1 Elected Members 2 Organisational Structure 3 Estimates Process 4 Linkage to the Strategic Plan 5 Strategic Planning Framework 5 Key Corporate Functions & Strategic Actions 15 Governance 15 Corporate 17 Community Planning and Development 19 Infrastructure and Services 24 Estimate Influences 26 Snapshot of Kingborough 26 Analysis of Operating Estimates 28 Operating Budget Summary 28 Estimated Operating Statement 29 Underlying Result 29 Revenue 29 Rates and Levies 30 User Charges and Statutory Fees 31 Grants – Operating 31 Other Revenue 32 Interest and Dividends 32 Grants – Capital 32 Contributions, Net Gain from Sale of Assets and Non-Cash Contributions 32 Profit in Associate 32 Expenditure 33 Depreciation 33 Employee costs 33 Materials, Contracts and Other Expenses 34 Levies to State Government 34 Borrowing Costs 34 Kingborough Waste Services 34 Analysis of Estimated Cash Position 35 Estimated Cash Flow Statement 35 Cash Flows from Operating Activities 36 Cash Flows from Investing Activities 36 Cash Flows from Financing Activities 36 Cash at End of Year 36 Restricted and Unrestricted Cash and Investments 36 Statutory Reserves 36 Discretionary Reserves 37 Analysis of Estimated Financial Position 38 Estimated Financial Position 38 Current Assets and Non-Current Assets 38 Current Liabilities and Non-Current Liabilities 38 Key Financial Indicators 39 Key Indicators and Financial Sustainability Benchmarks 39 Underlying Result Ratio 39 Net Financial Liability Ratio 39 Asset Consumption Ratio – Roads 40 Asset Sustainability Ratio 40 Analysis of Capital Estimates 41 Capital Works Budget 41 Appendix A Financial Statements 44 Appendix B Capital Works 47 Appendix C Rates Resolutions 51 Appendix D Fees and Charges 55 Appendix E Budget Worksheets 69 Mayor’s Introduction Kingborough’s Annual Plan outlines our goals and We have a number of other challenges including the strategies for the year ahead, making sure we are loss of $600,000 from TasWater dividends, the rising open and accountable to our communities. costs of waste management and the $135,000 required to fund the local council elections. The This year Council published the recommended storm event in May will also have an impact, as a budget and rates for community feedback and number of Council facilities and infrastructure were received 14 submissions. The responses were mixed, damaged, along with a massive clean-up effort that with some community members supporting the Long will take months to complete. Term Financial Plan commitment and current service levels; others did not support the recommended My fellow councillors and I will continue to strive for rate increase; and some were more concerned with a high performing council and to achieve our vision particular issues and operational expenditure items. of being a thriving, vibrant and connected community, which delivers best quality services to Council accepted, by an absolute majority, officers’ our community; and to maintain Kingborough as recommendations for a four per cent rate increase charging the lowest rates, per comparable sized for the operational budget and rates for 2018/19. council in Tasmania. Council’s budget decision is based on the best We encourage you to join us in making the most out outcome for all ratepayers and residents in of living in Kingborough. Kingborough, as well as makes sure that we are on track to return to an operating surplus by 2021. This plan sets out the budget estimates; rates resolutions; information on planned programs and projects; and a detailed breakdown of Council services and how they will be funded for the coming year. Cr Steve Wass MAYOR Major projects for the year include the Channel Highway reconstruction in Kingston, the replacement of the toilet block on Osborne Esplanade at Kingston Beach, Brightwater Road renewal including stormwater upgrades, the design to upgrade Adventure Bay Road, the Snug playground, and an extensive resealing and resheeting program. The Kingston Park project is fast progressing and new roads are being built on the site alongside our Community Hub, which is expected to open in 2019. This is the most significant project for Kingborough and will contribute to the stimulation and creation of a revitalised centre in Kingston, which will include a new community centre, residential properties, some commercial space and public open space. We continue to face the challenge of increasing pressures on our infrastructure and delivering our current levels of service to a rapidly expanding community, as well as returning to a sustainable operating surplus. Kingborough Council Annual Plan 2018/19 P a g e | 1 Adopted by Council on 13 June 2018 Elected Members Mayor Steve Wass Deputy Mayor Paula Wriedt Mobile: 0412 634 647 Tel: 6229 4045 Email: [email protected] Email: [email protected] Councillor Richard Atkinson Councillor Sue Bastone Mobile: 0408 411 941 Mobile: 0407 099 747 Email: [email protected] Email: [email protected] Councillor Dr Graham Bury Councillor Paul Chatterton Mobile: 0417 308 687 Tel: 6229 6532 Email: [email protected] Email: [email protected] Councillor Flora Fox Councillor David Grace Tel: 6267 2851 Mobile: 0438 679 200 Email: [email protected] Email: [email protected] Councillor Michael Percey Councillor Dean Winter Mobile: 0419 892 511 Mobile: 0427 253 654 Email: [email protected] Email: [email protected] Kingborough Council Annual Plan 2018/19 P a g e | 2 Adopted by Council on 13 June 2018 Organisational Structure The Council delivers goals and key objectives through a staffing structure of eight departments that deliver a number of business and service programs. The following diagram describes the departments and business activities of Council. GENERAL MANAGER Civic Affairs DEPUTY GENERAL MANAGER Community & Economic Development GOVERNANCE & ENVIRONMENTAL DEVELOPMENT COMMUNITY ORGANISATIONAL INFORMATION ENGINEERING FINANCE PROPERTY SERVICES SERVICES SERVICES DEVELOPMENT SERVICES SERVICES Environmental Planning Youth Services Operations Human Resources Financial Services Information Compliance Health Development Community Stormwater Work Health & Rates Technology By-Laws Natural Resource Engineering Development Roads Safety Payroll Records Governance Management Building Kingborough Sports Bridges Media & Contracts & Customer Services Services Climate Change Plumbing Centre Asset Management Communications Procurement Telecommunications Recreational Weed Arts & Culture Waste Management Bruny Island Planning Management Manor Gardens Project Management Service Centre Emergency Plant & Fleet Financial Reporting Management Design Audit Panel Property Parks & Reserves Risk Management Management & Insurances Building Maintenance Sporting Ovals Kingborough Council Annual Plan 2018/19 P a g e | 3 Adopted by Council on 13 June 2018 Estimates Process This section lists the process undertaken to allow adoption of the Estimates in accordance with the Local Government Act 1993 and the associated Regulations. The preparation of the estimates begins with officers preparing the operating and capital components of the budget during the period January – March. Draft consolidated estimates are then prepared and various iterations are considered by Council at informal briefings (workshops) during March - May. Proposed estimates are prepared in accordance with the Act and submitted to Council in June for approval and adoption of rating resolutions. The estimates must be adopted by an absolute majority. They must be adopted before 31 August but not more than one month before the start of the financial year. The related Annual Plan must be provided to the Director of Local Government and the Director of Public Health. The key dates for the estimates process are summarised below: Estimate Process Timing Commence drafting estimates January/March Workshops with Council March/May Estimates adopted by Council June Advertise new rates and charges within 21 days June/July Provide the Director of Local Government with a copy of the rating resolution June/July within 21 days Provide Director of Local Government and Director of Public Health with a June/July copy of the Annual Plan including estimates _____________________________________________________________________________________________ Kingborough Council | Annual Plan 2018/19 Page | 4 Adopted by Council on 13 June 2018 Linkage to the Strategic Plan This section describes how the Annual Estimates link to the achievement of the Strategic Plan within an overall planning framework. This framework guides the Council in identifying community needs and aspirations over the long term (Our Vision), medium term (Strategic Plan) and short term (Annual Plan and Budget Estimates) and then holding itself accountable through the Audited Financial Statements and Annual Report. Strategic Planning Framework The Strategic Plan summarises the financial and non-financial objectives and strategies. The Annual Estimates are framed taking into consideration the Strategic Plan and the activities and initiatives included in the Strategic Delivery Plan. The diagram below depicts the strategic planning framework of Council. Core Values Long Term Planning Our Vision Long Term Financial Plan Long Term Asset Management Plan