City of Holdfast Bay Business Plan 2016 by Algo Más

OUR PLAN FOR OUR PLACE

2016â&#x20AC;&#x201C;17 ANNUAL BUSINESS PLAN

CITY OF HOLDFAST BAY

TAPLEYS HILL ROAD

THIS YEARâ&#x20AC;&#x2122;S BUDGET For every $1,000 of council funds spent we will allocate approximately:

Community centres and engagement

ANZAC HIGHWAY

$17.99 Commercial and economic enterprises

JETTY ROAD

$25.80 Community buildings and public facilities

$68.59 Sporting and recreation facilities

$20.67 Corporate operations, administration and finance

ESPLANADE

$188.13 Stormwater drainage

$11.62 Public safety

$28.29 Roads, footpaths, bike paths and traffic management BRIGHTON ROAD

$227.99 Strategic planning and development

$41.88 Home and community services

$34.96 Foreshore, beaches and coastal infrastructure

$43.68

$ $

Waste management

$65.73 Open space, reserves, street trees and playgrounds

$122.38 Visitor attractions, events, tourism and marketing

$40.48 Carparks and parking regulation

$15.60 Libraries, culture and heritage

$46.21

*Locations of symbols are illustrative only

500 m

2016–17 ANNUAL BUSINESS PLAN

CONTENTS OUR PLAN FOR ‘OUR PLACE’ �� 2

OUR PRIORITIES �� 20

WELCOME �� 3

OUR SERVICE DELIVERY �� 20

OUR CITY �� 4

OUR CAPITAL PROJECTS ��21

OUR COMMUNITY �� 4

OUR NEW PROJECTS ��21 DELIVERING ECONOMIC PROSPERITY ��22

OUR VISION �� 5

OUR ACHIEVEMENTS �� 22

HIGHLIGHTS �� 6

OUR PRIORITIES �� 22

MAJOR PROJECTS �� 6

OUR SERVICE DELIVERY �� 23

FINANCIAL OVERVIEW �� 7

OUR CAPITAL PROJECTS �� 24

FINANCIAL SUMMARY �� 8

OUR NEW PROJECTS �� 24

2016–17 REVENUE �� 8

NHANCING CITY E DESIGN AND FUNCTION ��25

2016–17 OPERATIONAL EXPENDITURE �� 9 2016–17 CAPITAL PROGRAM �� 10 OUR FINANCIAL GOVERNANCE ��11 ENSURING FINANCIAL SUSTAINABILITY ��11 OUR FINANCIAL PRINCIPLES ��11 SIGNIFICANT INFLUENCES �� 12 BROAD TRENDS AND EMERGING ISSUES ��12 THE 2016–17 BUSINESS ENVIRONMENT ��13 ACHIEVEMENTS, PRIORITIES AND SERVICE DELIVERY �� 16 BUILDING A STRONG COMMUNITY ��16 OUR ACHIEVEMENTS ��16 OUR PRIORITIES ��16 OUR SERVICE DELIVERY ��17 OUR CAPITAL PROJECTS ��18

OUR ACHIEVEMENTS �� 25 OUR PRIORITIES �� 25 OUR SERVICE DELIVERY �� 25 OUR CAPITAL PROJECTS �� 26 OUR NEW PROJECTS �� 26 DEVELOPING OUR ORGANISATION �� 27 FUNDING OUR CITY �� 28 OPERATING RESULT �� 28 OUR FINANCIAL STATEMENTS �� 28 FINANCIAL MANAGEMENT �� 28 OUR FINANCIAL TARGETS �� 34 MEASURING OUR PERFORMANCE �� 36 CITY SCORECARD �� 36 CORPORATE SCORECARD �� 36

OUR NEW PROJECTS ��19

REPORTING CURRENT PERFORMANCE �� 37

CREATING A SUSTAINABLE ENVIRONMENT ��20

FINANCIAL STATEMENTS �� 38

OUR ACHIEVEMENTS �� 20

TRADITIONAL CUSTODIANS We acknowledge the Kaurna people as the traditional custodians of this land. We respect their spiritual relationship with the country that has developed over thousands of years, and the cultural heritage and beliefs that remain important to the Kaurna people today.

CITY OF HOLDFAST BAY

OUR PLAN FOR ‘OUR PLACE’ Our Place: Holdfast Bay Community Plan 2012–2015 (Our Place) is a collaborative approach between the community and Council that aims to build a vibrant and attractive place that reflects the expectations of everyone who lives, works and plays at Holdfast Bay. It looks into the future of our city, establishing our vision and defining four key outcome areas to map our direction. Our annual business plans draw on Our Place, setting out what we will do each year to reach the specific outcomes set by Council and the community. This 2016–17 Annual Business Plan also draws on our Long Term Financial Plan and our Asset Management Plan to inform and guide us through the coming year. In 2016–17 Council’s Our Place Plan, Long Term Financial Plan and Asset Management Plan will all be reviewed to assess our direction and ensure that the plan for our city reflects the vision, expectations and wishes of the Holdfast Bay community.

2016–17 ANNUAL BUSINESS PLAN

WELCOME In the lead up to the federal election, the calls for transparency and accountability across all tiers of government grow louder. As the costs of living rise, we cry out for stability. We want to know that the people holding the communal purse strings have our needs firmly in mind as they decide how to allocate resources. We want to know that they can be trusted to make responsible, well-judged decisions of lasting value. We want to know that, while they are in power, they will take initiative, respond to opportunities, explore ideas and make things happen – but that, when they step down, they will leave a strong foundation for the next set of leaders to build upon. This is especially true in local government, where the decisions made by your elected members shape the character, function and liveability of your neighbourhood in so many practical, everyday ways. In Holdfast Bay, you can be assured that your Council makes every decision with our community in mind. We have proven ourselves to be a strongly self-regulating, community-focused representative body. Our critical aims centre on achieving affordability, predictability and sustainability. That is, we work to ensure that our rates are – and will remain – affordable, and that our financial position remains viable in the long-term. These major goals are at the forefront of our budget planning each year and have shaped our specific plans for the coming financial year. I am, therefore, proud to present our 2016–17 Annual Business Plan, which details these specific plans and their allocated budgets. This year’s plan is focused on consolidation and forward planning. We will continue with our long-term major projects and reduce our debt while starting the groundwork for our next round of major projects. With a low 2.9 per cent rate increase, we will continue to deliver our extensive suite of high-quality services while: • continuing with the Kauri Parade Community and Sporting Precinct redevelopment in Seacliff Park • completing the Brighton to Kingston Park Coast Park (excluding the Minda section) • continuing to upgrade our stormwater drainage system • attracting and supporting a broad range of events • developing detailed designs to rejuvenate the Glenelg Town Hall and Library as part of our Glenelg Regeneration Program – Glenelg Town Hall (Project 3) • commencing the Jetty Road Glenelg and Environs Masterplan. We presented our draft version of this plan to the Holdfast Bay community in May, and this final version reflects the feedback we received. We thank everyone who contributed to that process, and look forward to delivering this year’s broad range of programs, services and projects. Stephen Patterson Mayor, City of Holdfast Bay

CITY OF HOLDFAST BAY

OUR CITY The town of Glenelg was named on 28 December 1836 when Governor John Hindmarsh presented the Proclamation of South Australia to settlers assembled at the historic Old Gum Tree, at what is now Macfarlane Street in Glenelg North. It was named after Lord Glenelg and was the first mainland settlement of South Australia. The City of Holdfast Bay was proclaimed in 1997 as a result of the amalgamation of the former cities of Glenelg and Brighton. It comprises 14 square kilometres and is home to approximately 37,000 people who all reside within 2.5 kilometres of our nine-kilometre stretch of famous coastline. Ideally located just 11 kilometres from the Adelaide city centre and five minutes from the Adelaide airport, ‘Our Place’ is one of the most celebrated places to live, work, visit and invest in the Adelaide metropolitan area. It boasts a rich heritage; beautiful natural environment; high-quality recreational and community facilities; superior education, health and retail options; a vibrant tourism sector; thriving retail precincts and a small light industrial area.

OUR COMMUNITY In 2011 (according to latest Census information) our city’s population was 36,763, of which 51 per cent was over 45 years of age. (This compares with 41 per cent for the greater Adelaide metropolitan area.) In 2011, our city had a 95 per cent employment rate, with the majority of the workforce holding positions as professionals, managerial or clerical and administrative roles. The key industries of employment within the area are health care and social assistance (22.2 per cent), accommodation and food services (15.8 per cent) and retail trade (15.3 per cent). Our city had approximately 17,000 private dwellings, 38 per cent of which were owned outright, and 29 per cent owned with a mortgage. The median mortgage payment for the area was $1,850 per month. Of these households: • 37 per cent are single-person households • 36 per cent are two-person households • 12 per cent are three-person households • 16 per cent are four-or-more-person households Thirty per cent of our population rent their homes, with a median weekly rent of $270. Property within the city is of high value, with a median market value of $342,500 for apartments and $625,000 for detached dwellings.

2016–17 ANNUAL BUSINESS PLAN

OUR VISION “To create a sustainable, well-serviced, safe and cohesive seaside community that enjoys an outstanding quality of life, welcomes visitors and values the city’s distinct history and open spaces.” Our Place, Holdfast Bay Community Plan 2012–2015 To achieve this vision we have identified four critical objectives, each of which are supported by key outcomes: Building a strong community

Delivering economic prosperity

• A place with a quality lifestyle

• A place to do business

• A place for every generation

• A place that welcomes visitors

• A place that celebrates culture

• A place that provides value for money

• A place that is safe and secure Creating a sustainable environment • A place that values its natural environment

Enhancing city design and function • A place that is well planned • A place that provides choice and enhances life

• A place that manages its environmental impacts

CITY OF HOLDFAST BAY

HIGHLIGHTS MAJOR PROJECTS In 2016–17 we will fund a number of major projects to support our vision of building a strong community, creating a sustainable environment, delivering economic prosperity and enhancing our city’s design and function. These include: • completing the Kauri Parade Sporting and Community Precinct redevelopment. The final stage of the project includes building a new central facility for use by sporting and community groups and the general community; demolishing the old building, building new car parking areas; and landscaping the site • commencing the Jetty Road Glenelg and Environs Masterplan. The masterplan will drive our investment in infrastructure and improvements to the precinct’s streetscape. To undertake the masterplan, we have allocated $75,000, and have submitted a funding application for an additional $75,000 through the State Government • progressing the Glenelg Regeneration Program – Glenelg Town Hall (Project 3). During this stage of the three-year project to create a community hub at Glenelg, we will be developing detailed designs to rejuvenate the Glenelg Town Hall and Library. Ultimately, the project will result in a modern library, plus a redeveloped local history museum, gallery space, visitor information centre, community lounge and cafe. The project is subject to our successfully acquiring grant funding from the Commonwealth Government and is expected to cost $4.70 million • upgrading our technology to provide a more intuitive, innovative and efficient operating environment, through the use of Cloud storage. This will replace our existing, physical data centre, improve security and increase efficiency and mobility in our use of council data, and make it easier for our community to access information, transact with Council and lodge documents. The project will be implemented over three years. In 2016–17 we have allocated $455,000 to upgrade and intergrade our records and information management system as part of the transition • completing the Kingston Park section of the Coast Park. The Coast Park is a shared pathway for pedestrians and cyclists that will eventually provide unbroken foreshore access from North Haven to Sellicks Beach. Our Kingston Park section extends from south of the Seacliff Surf Life Saving Club to the Council boundary on Burnham Road, Kingston Park, and work will include upgrading footpaths, lighting and street furniture along the pathway. The project is subject to our successfully acquiring State Government grant funding.

2016–17 ANNUAL BUSINESS PLAN

FINANCIAL OVERVIEW In the 2016–17 financial year we predict we will be working with: • a consolidated operating surplus of $947,000 (comprising an Alwyndor surplus of $474,000 and Municipal operations surplus of $473,000) • a consolidated operating income of $64.25 million to cover our operating expenditure of $60.81 million • a 2.9 per cent increase in rate revenue (excluding separate rates, and the Natural Resource Management Levy). In the 2016–17 financial year we will invest $59.77 million to provide services, implement programs and build or maintain essential assets. Our main areas of investment will include: • $50.43 million to provide services to our community • $6.83 million to upgrade and maintain our community assets • $2.51 million for new capital infrastructure and service improvements. The funding for these activities will come from rates, grants from the Commonwealth and State Governments, revenue from asset sales, rental from community clubs and commercial leases, revenue from the Brighton Caravan Park, contributions from community associations and income derived from statutory and user charges.

CITY OF HOLDFAST BAY

FINANCIAL SUMMARY 2016–17 REVENUE $64.25 million We will receive $64.25 million to provide services and infrastructure to the community. Municipal Revenue

Alwyndor Revenue

Rate revenue

Operational revenue

Rates – general

$31.99 million

User charges

$0.55 million

Investment income

$0.31 million

Patawalonga Marina – separate rate

$0.07 million

Reimbursements

$0.01 million

Other

$0.43 million

Total operational revenue

$4.43 million

NRM levy

$1.11 million

Total rate revenue

$33.72 million

Operational revenue Statutory charges User charges

External revenue $2.11 million $3.8 million

Operating grants and subsidies

$12.78 million

Total external revenue

$12.78 million

Total Alwyndor revenue

$17.21 million

Investment income

$0.03 million

Reimbursements

$0.72 million

Other

$0.62 million

Total operational revenue

$7.28 million

Consolidated Revenue

Proceeds from asset disposal

$2.29 million

Total consolidated revenue (including capital and operating revenue)

Operating grants and subsidies

$3.43 million

Share of profits – joint ventures

$0.12 million

External revenue

Amounts received for new/upgraded assets Total external revenue Total municipal revenue

$0.2 million

$47.04 million

Rates – general ��$31.99m

Jetty Road Glenelg –

Patawalonga Marina –

separate rate �� $0.07m

User charges �� $3.68m Investment income ��$0.31m Reimbursements �� $0.01m Other �� $0.43m O perating grants and subsidies ��$12.78m

Consolidated

Rates – General ��$31.99m separate rate �� $0.55m

Alwyndor

$64.25 million

$6.04 million

Municipal

$3.68 million

Jetty Road Glenelg – separate rate

separate rate �� $0.55m separate rate �� $0.07m

NRM levy �� $1.11m

Statutory charges �� $2.11m

User charges �� $3.80m

User charges �� $7.48m

Investment income �� $0.03m

Investment income �� $0.34m

Reimbursements �� $0.72m

Reimbursement �� $0.73m

Other �� $0.62m

Other �� $1.05m

Proceeds from

Operating grants

Share of profits –

Amounts received for new/

A mounts received for new/ upgraded assets �� $0.20m

asset disposal �� $2.29m and subsidies �� $3.43m joint ventures ��$0.12m upgraded assets �� $0.20m

asset disposal �� $2.29m and subsidies �� $16.21m joint ventures ��$0.12m

2016–17 ANNUAL BUSINESS PLAN

2016–17 OPERATIONAL EXPENDITURE $60.81 million We will spend $60.81 million to deliver services to the community. Municipal operational expenditure

Alwyndor operational expenditure

Services

Asset management

$7 million

Open space and coastal assets

$4.85 million

Corporate services

$4.26 million

Waste management

$3.44 million

Marketing and tourism Regulatory services

$2.2 million $1.94 million

Community wellbeing

$1.83 million

Information and technology services

$1.79 million

Library services

$1.46 million

Community develpoment

$1.3 million

Commercial and economic enterprises

$1.3 million

Development services

$1.25 million

Financial services

$1.18 million

Strategic planning and sevelopment policy

$0.76 million

Total expenditure on services

Alwyndor

$15.87 million

Total expenditure on services

$15.87 million

Other operational expenditure Depreciation – Alwyndor

$0.86

Total expenditure on other operational

$0.86

Total Alwyndor operational expenditure

$16.73 million

Consolidated operational expenditure Total consolidated operational expenditure

$60.81 million

$34.56million

Other operational expenditure Depreciation – municipal

$8.12 million

NRM Levy

$1.09 million

Operational new initiatives

$0.31 million

Total expenditure on other operational

$9.52 million

Total municipal operational expenditure

$44.08 million

Consolidated Municipal

Alwyndor Alwyndor �� $15.87m Depreciation �� $0.86m

Alwyndor �� $15.87m

Depreciation ��$8.12m

Depreciation �� $8.98m

Asset management �� $7.00m

pen space and O coastal assets �� $4.85m

Corporate services �� $4.26m

Waste management ��$3.44m

Marketing and tourism �� $2.20m

Regulatory services ��$1.94m

Community wellbeing ��$1.83m

I nformation and technology services �� $1.79m

Library Services �� $1.46m

Library services �� $1.46m

Community develpoment � $1.30m

ommercial and C economic enterprises �� $1.30m

Development services ��$1.25m

Financial services �� $1.18m

NRM levy �� $1.09m

trategic planning and S development policy �� $0.76m

trategic planning and S Development policy �� $0.76m

Operational new initiatives ��$0.31m

CITY OF HOLDFAST BAY

2016–17 CAPITAL PROGRAM $9.02 million We will spend $9.02 million on our capital program to update and maintain our community’s assets in 2016–17. Municipal capital program

Alwyndor capital program

Transport and access

$2.51 million

Alwyndor plant and equipment

$0.44 million

Capital new initiatives

$2.19 million

Total Alwyndor capital expenditure

$0.44 million

Buildings

$1.21 million

Major plant and equipment

Consolidated capital program

$0.97 million

Project management capitalised

$0.77 million

Open space

$0.61 million

Stormwater drainage

$0.12 million

Coastal infrastructure

$0.12 million

Library collection

$0.08 million

Total municipal capital expenditure

$8.58 million

Total Alwyndor capital expenditure

I ncludes $886,000 Commonwealth Government Funding through the Roads To Recovery Grant Program

‘ Project management capitalised’ is the amount of operational funding for design and project management work that is capitalised, and is therefore attributed to the capital budget

$9.02 million

Consolidated Municipal Transport and access �� $2.51m Capital new initiatives ��$2.19m

Alwyndor lwyndor plant A and equipment ��$0.44m

Transport and access �� $2.51m Capital new initiatives ��$2.19m Buildings �� $1.21m

Buildings �� $1.21m

ajor plant M and equipment ��$0.97m

P roject management capitalised �� $0.77m

Open space �� $0.61m

lwyndor plant A and equipment ��$0.44m

Stormwater drainage ��$0.12m

Coastal infrastructure ��$0.12m

Library collection �� $0.08m

2016–17 ANNUAL BUSINESS PLAN

OUR FINANCIAL GOVERNANCE “Council’s long-term financial performance and position are sustainable where planned long-term service and infrastructure levels and standards are met without unplanned increases in rates or disruptive cuts to services.” City of Holdfast Bay Long Term Financial Plan

ENSURING FINANCIAL SUSTAINABILITY Policies and practices We adopt prudent financial governance policies and practices to enable us to consistently deliver cost-effective services to our community. Our policies and practices are based on three goals: 1. Program sustainability to ensure the maintenance of our high-priority programs including the renewal and replacement of infrastructure 2. Rate stability to ensure a reasonable degree of stability and predictability in the overall rates 3. Intergenerational equity to ensure a fair sharing of the distribution of resources and their attendant financial burden between current and future users of our services and infrastructure.

OUR FINANCIAL PRINCIPLES The following key financial principles were adopted in the preparation of this plan: • Presenting a balanced budget We aim to fully fund the cost of services, including the depreciation of infrastructure and assets (ie, wear and tear), in order to share the costs of our services fairly between our current and future users. This is based on the understanding that insufficient funding would shift the cost burden of today’s services on to future users in the form of higher rates or reduced services. • Maintaining infrastructure and managing assets We aim to maintain infrastructure (eg, buildings and bridges) and assets (eg, roads, kerbs, paving, machinery, trees, irrigation systems, playground equipment) to ensure continued delivery of services to agreed standards. This involves developing and using long-term infrastructure and asset management plans to manage our asset portfolio efficiently, and continuing to invest in renewing and replacing our assets as they wear out. • Providing predictable rates We aim to provide our community with a reasonable degree of predictability for rates over the medium term. We aim to keep you fully informed about future rates and the corresponding services provided. • Prudent debt management We aim to keep our debt as low as practicable. We borrow funds to invest in new long-term assets or to replace and renew existing assets and thereby spread that cost over the longer term, consistent with the typical long lives of assets.

CITY OF HOLDFAST BAY

SIGNIFICANT INFLUENCES BROAD TRENDS AND EMERGING ISSUES We considered the impact of a number of global, national and state trends when developing our 2016â&#x20AC;&#x201C;17 Annual Business Plan. They include: Communications and technology Rapid advances in technology and communication such as the rollout of the National Broadband Network (NBN), increased mobility of technology and ongoing development of new applications (apps) make for continuously changing environments. These developments are changing the ways people interact and undertake business, and influencing customer expectations for flexible service delivery. This challenges us to keep abreast of, and capitalise on, these changes so that we can maintain our high standards of customer service. Economic vitality The impending closure of car manufacturing in Australia coupled with uncertainty in the defence and mining industries are presenting a number of challenges in our manufacturing sectors. We are faced with a transitioning, more diverse, knowledge-based economy. The State and Commonwealth Governments have brought forward a number of transport and infrastructure related capital projects to boost employment opportunities whilst the economy is in transition. The lower Australian dollar has made our products more competitive in international markets, and continued low interest rates are providing a favourable environment for construction and domestic development projects. Health and wellbeing Todayâ&#x20AC;&#x2122;s modern society reportedly results in a number of lifestyle challenges for individuals, including an increasingly sedentary lifestyle, longer working hours and higher obesity rates, which are associated with a number of chronic health conditions and increasing social isolation. To combat these issues, we commit to providing facilities and services that promote healthy, active lifestyles and opportunities for social engagement. Environment We are committed to protecting our valuable natural environment, identifying and responding to the potential impacts of climate change, reducing our reliance on fossil fuels, reducing energy consumption and addressing water security across all operations.

2016–17 ANNUAL BUSINESS PLAN

THE 2016–17 BUSINESS ENVIRONMENT The following factors are expected to influence our business environment in 2016–17: Operating and utility costs Just like households, all councils are subject to a number of costs they have a limited ability to control. In 2016–17 we expect the Environment Protection Authority Landfill Levy to rise by 8.8 per cent from $57 per tonne to $62 per tonne. Our water charges are expected to rise by $60,000 and electricity costs by $33,000. Depreciation on new assets has increased by $312,000. This increase in depreciation is offset by the benefits that new and improved facilities provide to our community. While expenditure on providing assets and services differs from council to council according to the needs and expectations of their individual communities, we use the Local Government Price Index (LGPI) as a benchmark for monitoring the cost of services we provide. This is similar to the Consumer Price Index (CPI), but monitors price changes in goods and materials that are specifically relevant to local government. The LGPI for the 2014–15 financial year was 1.7 per cent; Adelaide’s annual CPI change for 2015 was 1.0 per cent. Housing industry The housing industry has remained steady over the past few years with a small improvement in lending activity throughout 2014–15. Housing building approvals were up from the previous year and this growth is expected to continue into 2016–17. For this reason, our 2016–17 Annual Business Plan has been prepared based on an estimated growth of 0.5 per cent. Economic and planning system reforms The State Government is progressing a range of reforms to the State’s planning and development system based on recommendations delivered from an independent Expert Panel in December 2014. The Minister for Planning has also been progressing and completing a number of planning policy changes to Council’s Development Plan to stimulate investment. These include: • allowing a greater range of medium and high-rise development along Jetty Road Glenelg, Anzac Highway, the Glenelg Foreshore and areas along the Patawalonga • simplifying assessment processes for development in our city’s major activity centres, and considering opportunities for commercial activities outside of designated centres • facilitating redevelopment of Minda’s North Brighton Campus based on Minda’s masterplan and long-term vision. While the details of the Government’s broader reforms package are still unfolding, they are likely to impact on Council’s business and financial operations in the area of local planning. Likely impacts may include: • a reduction in planning assessment fees received by Council, particularly for larger scale or high-value projects with an investment value of over $3.00 million • increased costs to Council to fund infrastructure that is currently provided by the Government or private sector, and the potential for reduced infrastructure funding at the local level in favour of regional projects • shared arrangements with the State Government and neighbouring councils to fund and service regional planning boards and assessment panels • improvements to our information technology systems to service a central online planning information and application system. We will be monitoring the impact of the State Government’s reforms package on our business operations as it emerges.

CITY OF HOLDFAST BAY

Changes in aged care funding arrangements With the average age of the South Australian population rising, the demand for aged care and support services will continue to increase. Healthcare costs are also rising and people are choosing to remain in their homes longer as they age. This is increasing pressure on all levels of government to provide and fund appropriate services and infrastructure. The Commonwealth Government’s Home Care Package provides services to help older people stay in their home. Funding for Home Care Packages will now be provided directly to consumers, giving greater choice and control of the type of care received and the provider delivering the care. Home Care Packages will also be portable, where consumers can change their service provider whenever they wish and retain their package if they relocate. This may result in a more competitive service environment. The Aged Care Funding Instrument (ACFI) is the classification instrument the Commonwealth Government applies to pay subsidies to residential aged care services. As of 1 July 2016, a range of changes will be made to the ACFI, which include: • modifying assessment criteria • updating processes and systems to better target high risk claimants • creating a more robust regulatory framework • drawing on larger validation samples. Refurbishment to our Alwyndor Aged Care facility has increased the depreciation expense to $862 000. Council administers the grant-funded Commonwealth Home Support Program (CHSP) which offers older people entry-level support to continue living independently at home. Co-payment charges for these services were previously determined by Council but, as part of the Commonwealth Government’s broader aged care reforms, a new national fees framework has been introduced. These changes to the CHSP aim to ensure greater consistency and fairness for all Australians accessing support services, and will result in an increase in co-payment charges to the users of CHSP services. Resident contributions will now equal a minimum of 15 per cent of the value of the grant funding allocated to Council. The new schedule of fees and charges will be applicable from 1 July 2016. For more information on the CHSP, please contact our Community Wellbeing team on 8229 9999.

2016–17 ANNUAL BUSINESS PLAN

Federal election A federal election will be held on 2 July 2016. The outcome will determine national policy direction and will have implications for all state and local government jurisdictions. At this stage, Council can not speculate on the exact nature of potential impacts on our city. External funding sources Our 2016–17 budget relies significantly on rate revenue for our operations (73 per cent, excluding Alwyndor and the NRM Levy). We are seeking to reduce this rate burden by increasing our revenue from other sources, such as rent from commercial leases, off-street car parks, income from the Brighton Caravan Park and Partridge House and grant funding from the Commonwealth and State Governments. Reductions in Commonwealth and State Government funding levels have had a flow-on effect, reducing the grants available to local government. This affects our ability to undertake certain major projects within our desired timeframes, and may influence our ability to commence this year with the: • Glenelg Regeneration Program – Glenelg Town Hall (Project 3) • Kingston Park Coast Park and Masterplan • Jetty Road Glenelg and Environs Masterplan • The Brighton Sports and Community Hub. We have, however, successfully attracted an additional $119,000 through the Commonwealth Government’s Roads to Recovery fund in 2016–17, which will allow us to undertake significant repairs and make improvements to our local roads, kerbing and stormwater system.

CITY OF HOLDFAST BAY

ACHIEVEMENTS, PRIORITIES AND SERVICE DELIVERY Building a Strong Community Building a strong community involves providing an environment where cultural diversity is respected and people feel valued and safe, participate in social activities and can live with dignity and a sense of ‘Place’. In 2016–17 we will allocate $24.30 million in service delivery, capital projects and new projects to meet this aim.

OUR ACHIEVEMENTS In 2015−16 we delivered many projects and services that support our goal of Building a Strong Community by providing safe, attractive environments that encourage people to come together and enjoy a high-quality lifestyle. These include: • completing the development of new playgrounds at Sandison Reserve, Glenelg East and at the Glenelg Foreshore, increasing family-friendly facilities for our community and visitors and activating our open spaces • continuing to improve public confidence and safety in our streets and public spaces through measures including installing lighting in Glenelg’s recently upgraded Chittleborough Lane • supporting our sporting clubs and community groups by improving community sporting facilities. In 2015–16 this included works to the football and cricket clubrooms at Brighton Oval, and upgrading the clubrooms and facilities at the Holdfast Bay Bowling Club in Glenelg North • completing Stage 1 of the Kauri Parade Sporting and Community Precinct redevelopment, including constructing 12 new tennis courts and a new hockey pitch, and commencing with building the multipurpose centre that will house a number of sporting and community groups. Council’s investment in this project is supported by funding from the Commonwealth Government, State Government, and Tennis SA • supporting over 1,800 Holdfast Bay residents by providing home support services and opportunities for community participation through the Commonwealth Home Support Program. Please visit holdfast.sa.gov.au/achievements for a full list of our achievements.

OUR PRIORITIES In 2016–17 we will continue to deliver projects that build a strong community, including: • completing the final stage of the Kauri Parade Sporting and Community Precinct (see page 6, Highlights) • working to secure Commonwealth grant funding to undertake the detailed design for the refurbishment of the Glenelg Town Hall and Library as part of the Glenelg Regeneration Program – Glenelg Town Hall (Project 3) (see page 6, Highlights) • working towards attaining national Dementia Friendly accreditation through Alzheimer’s Australia as part of our goal to become a dementia friendly community. This will make Holdfast Bay one of the first councils in South Australia to have achieved this accreditation.

2016–17 ANNUAL BUSINESS PLAN

OUR SERVICE DELIVERY $22.4 million Alwyndor Aged Care – $15.87 million We will accommodate the needs of our ageing community by providing appropriate assets, services and programs including the high-quality residential and out-patient services offered by our Alwyndor Aged Care facility. Operated by Council, Alwyndor is fully funded by the Commonwealth and State Governments and Alwyndor resident and client contributions. Alwyndor Aged Care’s services include 134 ‘ageing in place’ residential accommodation beds, respite care, six transitional care beds, hospitality services, rehabilitation and support services, plus 230 community service packages (including extended aged care at home, community care packages and community options program). Community development – $1.30 million Our Community Development programs, services and events aim to promote interaction and minimise social isolation and disadvantage within our community. This includes providing places, infrastructure and funding support for people of all ages and abilities to meet, mix and build constructive connections, and opportunities for participation in a wide range of sporting, recreational and cultural activities. This year, we will continue to support: • sports and recreation, including supporting local sporting cubs and recreational planning and development • community development programs including community gardens and community and youth sponsorship grants • arts, youth and cultural activities • volunteer services • community centres, including the Holdfast Bay Community Centre, Glenelg Community Centre, Glenelg North Community Centre, Brighton Over 50s Club, Seacliff Youth Centre and Partridge House • Aboriginal reconciliation through consultation and engagement. Home and community services – $1.83 million We will foster and support community programs and activities that promote wellbeing and resilience within the community; support people to remain in their homes and provide choices that enhance people’s quality of life and keep them connected to their communities. We will deliver this aim through: • Commonwealth Home Support Program (CHSP) a range of services including, but not limited to social support, domestic assistance and basic home maintenance for eligible residents who are frail and elderly or have a disability, and their carers. • Life Links a program to engage residents from pension-only Supported Residential Facilities in social and recreational opportunities. • Community Transport a door-to-door community bus service with routes from home to local shopping centres and facilities for eligible residents.

CITY OF HOLDFAST BAY

Library services – $1.46 million We will provide accessible and progressive library services that meet our community’s informational and recreational reading needs while fostering a love of lifelong learning. We will continue to develop our library collection while offering our home library service and a range of events, programs and activities through our two branches at Brighton and Glenelg. Regulatory services – $1.94 million We will keep our community safe with an emphasis on equity, fairness and compliance with local, state and national regulations, laws and standards. We will achieve this by: • providing environmental health services, including inspecting premises where food is prepared and sold and investigating public health risks • monitoring public safety and security • ensuring compliance with our animal management laws and local by-laws • monitoring and enforcing parking laws • educating our residents, visitors and business owners about our laws and local by-laws providing immunisation services to assist in preventing the spread of infectious diseases.

OUR CAPITAL PROJECTS $1.69 million Street lighting – $101,000 By improving night visibility in our public places and streets, we help people to feel safe and enjoy living, doing business in, and visiting Holdfast Bay. We have allocated $101,000 to replace existing lighting on the Brighton Jetty, Jetty Road in Brighton, Cygnet Court in Glenelg North and Colley Reserve in Glenelg. Buildings capital renewal works – $398,000 Renewing our buildings ensures that they continue to provide safe and comfortable facilities for our community. Open space capital renewal – $98,000 As part of our open space management plans, we have allocated $98,000 to repairing and/or upgrading power sources, facilities, lighting, seating and fencing in our reserves in order to continue providing family-friendly, attractive and safe open spaces. Glenelg Oval – $300,000 In 2016−17, we will upgrade facilities at the Glenelg Oval. This will include refurbishing the grandstand, replacing the roof on the public toilets and upgrading the clubrooms and change rooms. Sporting and community clubrooms and facilities – $390,000 In 2016–17, we will repair and upgrade a number of sporting and community facilities. This includes replacing the boundary fence at the Brighton Lacrosse Club, replacing the roof at the Paringa Tennis Club and replacing volleyball nets and poles at Glenelg. Community centres – $92,000 Our community centres play an important role in providing opportunities for residents from all age groups and cultural backgrounds to participate in wide range of social activities. In 2016–17 we have allocated $70,000 for upgrades to the Holdfast Bay Community Centre and $22,000 to replace a retaining wall at the Seacliff Community Centre. CCTV network – $61,000 Safe public spaces are essential in ensuring a vibrant community that can fully enjoy our retail offerings, restaurants, tourism activities and community events. We have allocated $61,000 to upgrading our CCTV network to support public safety.

2016–17 ANNUAL BUSINESS PLAN

Library collection – $83,000 We will continue to maintain our library collection to ensure that materials are current, accessible and meet the cultural and informational needs of our community. Public art – $20,000 We will continue to support local arts initiatives while adding to our public art collection by purchasing sculptures from local artists and festivals, such as the Brighton Jetty Classic Sculpture Competition, and installing them in our public spaces. Tennis court upgrades – $76,000 This year we will upgrade the tennis courts at Dover Square Tennis Club to support active lifestyles through participation in sports. Brighton ‘Ashes’ Memorial – $46,000 Following the success of the ‘ashes’ memorial near the Glenelg Jetty, we will construct several sensitively designed granite structures near the Brighton Jetty. This will provide an option for people to record the names of loved ones whose ashes have been scattered at sea. Glenelg Library – $21,000 To ensure our buildings are secure and safe we will upgrade security at the Glenelg Library, including upgrading existing CCTV cameras and improving access to the roof.

OUR NEW PROJECTS $208,000 Sporting and community hub masterplan (detailed design) – $100,000 We will undertake the detailed designs for a sporting and community hub masterplan to design and plan improvements for at least one major facility. Bike pump track – $28,000 We will build a bike pump track which is a dirt, closed circuit track consisting of mounds and banked turns. The track will be constructed in an open space adjacent to the train line on Commercial Road in Brighton. This initiative is subject to approval by the Department of Planning, Transport and Infrastructure (DPTI). Shopfront Character and Heritage Grants scheme – $50,000 We will introduce a grant scheme to assist with conserving, restoring and maintaining character of our retail precincts and heritage premises. (See page 32 and 33, Rebates.) Susan Grace Benny bust – $30,000 We will commission a bust commemorate Susan Grace Benny, Australia’s first woman politician in elected office. Susan Grace Benny became a member of the Brighton Council in 1919.

CITY OF HOLDFAST BAY

Creating a Sustainable Environment Environmental sustainability ensures we are protecting and enhancing our natural physical environment for current and future generations. In 2016−17 we will allocate $9.07 million to delivering services, and undertaking capital projects and new projects that enable us to make progress in this critical aim.

OUR ACHIEVEMENTS In 2015−16 we responded to global and local environmental challenges by delivering a number of projects, events and programs, including: • continuing with upgrading our stormwater drainage system to improve capacity and mitigate the risk of flooding. This includes upgrades at Pine Gully in Kingston Park and at Pantone Crescent in Somerton Park • replacing conservation fencing at the Kingston Park cliff face, behind the Brighton Caravan Park. The upgraded fencing will improve safety on the trails through the area and better protect this invaluable natural landscape • continuing to support community initiatives to reduce environmental impact. We awarded grants to five community groups for environmental projects, which included a nature play space at Paringa Park Primary, a water tank at Kate Cocks Child Care Centre, a solar panel system at Holdfast Bay Community Centre, a lighting retro fit at Seacliff Uniting Church and a water conservation project at Somerton Park Bowling Club • continuing the kitchen organics basket program, which reduces both food waste in landfill and waste disposal costs. This has resulted in diverting up to 878 tonnes of food waste from landfill annually. Please visit holdfast.sa.gov.au/achievements for a full list of our achievements.

OUR PRIORITIES In 2016–17 we will continue to deliver projects that create a sustainable environment including: • supporting local community environment groups and schools by delivering environmental education programs • erecting shade sails above playgrounds at John Miller Reserve, Wattle Reserve and the Glenelg Foreshore Playground.

OUR SERVICE DELIVERY $8.29 million Open space and coastal assets – $4.85 million We will manage and maintain the community’s natural assets in an environmentally and financially sustainable manner for the benefit of our residents and the wider community. We support this aim by: • managing our open spaces and reserves • planning and implementing environmental management programs • planting and caring for trees • cleaning our streets and foreshore • operating and maintaining our cemeteries (North Brighton Cemetery and St Jude’s Cemetery) • providing well-planned, well-maintained and appropriate street lighting • managing and maintaining our coastal zones and foreshore. Waste management – $3.44 million We will provide a safe, efficient and sustainable service for removing, recycling and disposing of our city’s waste. We will achieve this by collecting and disposing of domestic rubbish, litter and e-waste and collecting and processing recyclables, hard rubbish and green waste.

2016–17 ANNUAL BUSINESS PLAN

OUR CAPITAL PROJECTS $471,000 Upgrading bins and bin enclosures – $41,000 We will continue to upgrade our public waste bins throughout our area to improve their appearance and functionality and add to our city’s amenity. Flood management – $97,000 Upgrading our stormwater drainage throughout the area improves the capacity to protect against flooding. In 2016−17 we have allocated $70,000 to continue with stormwater upgrades across our city as per our Stormwater Management Plan, and $27,000 to replace inlet pits and pipework. Irrigation – $290,000 In 2016–17 we will replace and upgrade irrigation systems in a number of reserves to better manage our ongoing water usage. Brighton jetty shade sail replacement – $43,000 In 2016–17 we will replace damaged sails on the shade structure on the Brighton Jetty.

OUR NEW PROJECTS $310,000 Streetscape improvements for Jetty Road, Glenelg – $110,000 This year we will undertake a variety of streetscape upgrades on Jetty Road, Glenelg. Playground shade sails – $200,000 To provide sufficient shelter for children, we will install shade sails above the playgrounds at John Miller Reserve, Wattle Reserve and the new Glenelg Foreshore playground. LED lighting upgrades To reduce our environmental impact, we will work with SA Power Networks and the State Government to convert our street lighting from fluorescent lighting to more energy-efficient LED lighting.

CITY OF HOLDFAST BAY

Delivering Economic Prosperity Economic prosperity builds a thriving business environment, which, in turn, supports a vibrant community and local employment opportunities, and provides an attractive location for visitors. In 2016−17, we will allocate $13.80 million to delivering services and undertaking capital projects and new projects to make progress in this area.

OUR ACHIEVEMENTS In 2015−16, we progressed a number of projects to deliver economic prosperity to the community and ensure Council’s continued sustainability and ability to service the needs of its community. Our activities included: • hosting more than 180 events (including the Glenelg Christmas Pageant, Proclamation Day, New Year’s Eve, the Santos Tour Down Under Street Party and Australia Day), which involved over 172,000 event attendees • completing the first stage of the Brighton Caravan Park redevelopment, including installing 14 new cabins; constructing a new multi-use amenities building; refurbishing 12 existing cabins and facilities; and installing a new playground and barbecue facilities. The improvements to this valuable community asset has contributed to an increase in visitor numbers and revenue • continuing to review our property and asset portfolio to ensure they meet the needs of our community, and sell underperforming properties to fund new facilities. In 2015–16 we sold the tennis courts on Portland Avenue in Seacliff, with the proceeds supporting the redevelopment of the Kauri Parade Sporting and Community Precinct. The sale of the former Brighton Town Hall on Brighton Road in Brighton, has progressed past expressions of interest and is currently under contract • completing the Partridge Street East Car Park and the Glenelg Cinema Complex project. Through a development agreement with a private developer we were able to secure funding for a two-level car park which is owned by Council and will provided an additional parking to the Jetty Road precinct. In addition to the new parking spaces, the development has also resulted in a new cinema complex for the Glenelg precinct • completing streetscape upgrades in the Somerton Park industrial precinct, which are improving amenity, functionality and traffic movement through the area. Please visit holdfast.sa.gov.au/achievements for a full list of our achievements.

OUR PRIORITIES In 2016–17 we will continue to deliver economic prosperity, welcome tourism and ensure that we are continuously improving our asset management and service delivery to provide the maximum value to our community. Our focus for 2016–17 includes: • reviewing our strategic plan ‘Our Place’ and undertaking work on our economic plan for our city • attracting and supporting a broad range of events • upgrading our information technology system to provide a more intuitive, innovative and efficient operating environment, through embracing the use of Cloud technology. This will also make it easier for our community to access information, transact with Council and lodge documents. (see page 6, Highlights)

2016–17 ANNUAL BUSINESS PLAN

OUR SERVICE DELIVERY $10.73 million Tourism and business marketing services – $2.20 million We will continue to develop an environment that assists the future viability of local businesses and creates opportunities to attract innovative industries. Our visitor and business services include: • planning, implementing and supporting a wide range of community events to increase visitation and length of stay within our city • actively consulting and communicating with our community through our community engagement program • preserving and stabilising the Holdfast History collection while developing opportunities to make it more accessible to the community • providing targeted tourism and marketing services aligned with community desires and needs • developing city-wide commercial and economic opportunities • providing a voice for the business and property owners in the Glenelg precinct through the Jetty Road Mainstreet Advisory Committee. Corporate services – $4.26 million We will continue to provide an organisation that enables us to deliver our services to the community in an accountable, transparent way that meets legislative requirements and provides the best value for money. The broad business areas delivering our corporate services include: • Customer service • Governance and policy • Human resources • Risk management • Occupational health, welfare and safety • Elected member and CEO support • Records management • Corporate communications. Financial and rating services – $1.18 million We will ensure Council remains financially sustainable and accountable by providing sound financial management, including rating, investment and treasury management, grants administration and auditing services. Information and technology services – $1.79million We will provide up-to-date information and technology services that support us in delivering effective and efficient services and provide a range of easy options for our customers to contact, and do business with, us. Commercial and Economic Enterprises – $1.30 million We will ensure that our commercial activities, commercial leases, and the Brighton Caravan Park provide the best possible return on the community’s investment.

CITY OF HOLDFAST BAY

OUR CAPITAL PROJECTS $2.35 million Signage – $10,000 To support our goal of providing an attractive city that welcomes visitors and encourages tourism, we have allocated funding to improving our signage in reserves and throughout our suburbs. In 2016−17 we have allocated $10,000 for signage at Jimmy Melrose Park in Glenelg South. Plant and equipment replacement – $1.40 million To meet our operational needs and enable safe, effective delivery of services, we have allocated $967,000 to maintaining and replacing our major plant and equipment in municipal operations and $435,000 for Alwyndor. Car parking – $37,000 In 2016–17 we will continue to upgrade car-parking facilities on our city. This includes an upgrade to the car park at the Dover Square Tennis Club. Somerton Park precinct infrastructure upgrade – $120,000 In 2016–17 we will continue an infrastructure upgrade to enhance the character of the Somerton Park light industrial precinct and improve the functionality of traffic movement through the area. Capital Project Management – $777,000 Project management reflects the costs (including staff salaries) incurred on developing capital projects and, will be attributed to the cost of each project.

OUR NEW PROJECTS $724,000 Brighton Caravan Park Redevelopment Stage 2 Planning – $50,000 Following the successful completion of Stage 1 of the Brighton Caravan Park’s redevelopment, we will undertake further investigations and produce detailed designs in preparation for Stage 2. We anticipate that Stage 2 will include constructing a new administration building, replacing old cabins and making further improvements to guest services and infrastructure. Information technology innovations – $624,000 We will improve our technology systems to support us in providing efficient and effective services. In 2016–17 this will include: • improving the integration of records and information management through Cloud technology – $455,000 • introducing an online development application tracking system – $25,000 • installing RFID (Radio Frequency Identification) security system at Glenelg Library (following the successful installation of this system at Brighton Library) – $108,000 • introducing an improved depot work requests system – $26,000 • scoping a Workplace Health and Safety (WHS) application to improve the way we manage and report on our WHS processes – $10,000 Business Start-up Support Scheme – $50,000 To foster vibrant business precincts and support new businesses in creating employment opportunities within the City of Holdfast Bay, we will partner with Renewal SA and Renewal Adelaide to introduce the Business Start-up Support Scheme. The scheme has been successfully implemented in the cities of Adelaide and Port Adelaide Enfield, and includes negotiating shopfront rentals and providing business support and training.

2016–17 ANNUAL BUSINESS PLAN

Enhancing City Design and Function A well-planned, accessible and safe city provides a variety of movement, transport, employment, recreational and housing choices. A city with well-connected public spaces supports our community and strikes a balance between the natural and built environment. In 2016−17, we will allocate $12.60 million to delivering services and undertaking capital projects and new projects to help us meet this objective.

OUR ACHIEVEMENTS In 2015−16, we progressed a number of projects to enable better, more attractive city design, including: • continuing development of the Holdfast Bay Housing Strategy. This strategy will include in-depth analysis into the demographic and housing trends in our community and provide a strategy for the ongoing development in Holdfast Bay into the future • continuing work on the Development Plan Amendment (DPA) for Seacliff Park (also known as Cement Hill). This DPA is being undertaken in partnership with the City of Marion and will set development policy for the area so housing and commercial development can occur • completing the Kingston Park Reserve Masterplan which features a variety of upgrades to the popular coastal reserve including new play equipment, sport facilities, a kiosk and the final section of Coast Park (excluding Minda) from the Seacliff Surf Lifesaving Club to the Council boundary on Burnham Road in Kingston Park. Please visit holdfast.sa.gov.au/achievements for a full list of our achievements.

OUR PRIORITIES In 2016–17 we will continue to achieve a well-planned, accessible and safe city by: • commencing the Jetty Road Glenelg and Environs Masterplan • completing Holdfast Bay’s final section of the Coast Park, the Kingston Park section, which runs from the Seacliff Yacht Club car park to our city’s southern boundary. On completion, we will have a continuous coast park, excluding the section on Minda-owned land, which is subject to State Government funding. (See page 6, Highlights.)

OUR SERVICE DELIVERY $9.01 million Asset management – $7.00 million We will continue to manage and maintain our community’s assets and infrastructure in an environmentally and financially sustainable way. This includes maintaining our playgrounds, street furniture, footpaths, roads, kerbs, water table, stormwater drainage system and buildings; controlling traffic; and running our ‘Roads to Recovery’ projects. Development services – $1.25 million Our development assessment, development advice and building compliance services work to recognise opportunities while protecting the character and amenity of our suburbs. This year, we will continue to provide advice and make decisions about how to achieve an attractive and sustainable environment through well-planned buildings and places that reflect the way we’d like to live. Strategic planning and policy – $759,000 We will deliver robust and comprehensive policies and strategies to guide future development, enhance our built environment and improve the function of our city.

CITY OF HOLDFAST BAY

OUR CAPITAL PROJECTS $2.32 million Roads (including signage, kerb and water table reconstruction) – $1.83 million Our Asset Management Plan allows for the systematic repair and replacement of our city’s streets, kerbs and watertable. In 2016–17, we have allocated $1.2 million to upgrading roads; $615,000 to renewing our kerb and water table; and $20,000 to replacing traffic control devices and signage. Footpaths – $195,000 We have allocated $195,000 to maintaining our city’s footpaths and ensuring they are safe. Bus stops – $30,000 As part of our three-year program, we will continue with upgrading bus shelters this year to comply with the requirements of the Disability Discrimination Act 1992. Public toilets – $65,000 The development of easily accessible and well-located public toilet facilities in our open spaces is an important aspect of providing a liveable city. In 2016−17 we have allocated $65,000 to upgrade the toilets at the Hindmarsh Street Walkway in Glenelg. Anzac Highway bike lane – $200,000 We will install a bicycle lane on Anzac Highway from the Brighton Road intersection, to the Adelphi Terrace intersection to provide a safe lane for cyclists and builds on the bike lane network in our city. This project will be funded through a State Government grant.

OUR NEW PROJECTS $1.27 million Kingston Park Coast Park – $1.03 million Subject to receiving State Government funding (and excluding the Minda-owned section), we will complete Holdfast Bay’s portion of South Australia’s popular Coast Park, by building our final section in Kingston Park. The Kingston Park Coast Park section will stretch along the foreshore from the Seacliff Surf Life Saving Club to our boundary on Burnham Road in Kingston Park. (See page 6, Highlights.) Public toilets – $160,000 We have allocated $160,000 to install a public toilet at Da Costa Reserve in Glenelg East. Jetty Road Glenelg and Environs Masterplan – $75,000 To drive investment in infrastructure and improve the streetscape in one of our most popular precincts, we will develop a masterplan for Jetty Road Glenelg and its key side streets. We are seeking one-for-one grant funding from the State Government to develop the masterplan. (See page 6, Highlights.)

2016–17 ANNUAL BUSINESS PLAN

DEVELOPING OUR ORGANISATION “We will serve the community through services and programs that meet and exceed its needs by doing things right the first time and doing them well; by having the right people with the right skills; and by managing our resources to meet the expectations of our community.” City of Holdfast Bay Long Term Financial Plan We are committed to our core values (ARISE): • Achievement • Respect • Innovation • Simplicity • Engagement Our objectives in each area of our business aim to provide the best value for our community. Finance We will develop and maintain a long-term financial position that ensures our financial health and sustainability. Assets We will drive a systematic approach to the development, maintenance and replacement of our assets and ensure that these assets meet the needs of our community. People We will attract and maintain the right mix of people with the skills and experience to deliver our services and achieve our goals. Systems and processes We will ensure that our organisation is appropriately governed, operates in a planned environment and continually works to improve services and programs. Service delivery We will maintain and improve our current service delivery, quality, efficiency and cost effectiveness. Our skills development program for staff, ‘Our People’, works in conjunction with the Our Place Community Plan to help us meet our organisational objectives.

CITY OF HOLDFAST BAY

FUNDING OUR CITY OPERATING RESULT In 2016–17 we are proposing an extensive program of services and projects. To achieve this we expect to raise $61.76 million in operating income and expend $60.81 million in operating expenditure. The funds come from a variety of sources; while our income is predominantly from rates, it also includes grants from State and Commonwealth Governments, as well as income from statutory and user charges. In 2016–17, 73 per cent of the revenue to fund municipal operations will come from rates (excluding the NRM Levy). We have budgeted for a consolidated operating surplus of $947,000 in 2016–17, composed of an operating surplus for Alwyndor of $474,000 to be reinvested back into its operations, and an operating surplus of $473,000 for our municipal activities.

OUR FINANCIAL STATEMENTS We have included a summary of our projected financial statements for the 2016–17 financial year in this 2016–17 Annual Business Plan. The plan’s consolidated financial statements incorporate both our municipal operations and Alwyndor Aged Care, which is a self-funded component of our service delivery. We intend to raise a net sum of $32.61 million (excluding NRM Levy) from rates in 2016–17. We own infrastructure and assets (such as roads, drains, footpaths and buildings etc) with a current value of approximately $658 million. These assets deteriorate over time through wear and tear, and must be replaced or renewed at appropriate intervals in order to prolong their useful lives and continue delivering services to our community. We are mindful of the impact on ratepayers and we are committed to developing options to ease the rate burden through increasing other sources of revenue.

FINANCIAL MANAGEMENT Our financial principles include our commitment to prudent debt management. Our treasury policy recognises the use of borrowings to spread the investment in community assets over time in support of the principle of intergenerational equity. Any funds that are not immediately required to meet approved expenditure or minimum liquidity are applied to reduce existing borrowings or defer the timing of new borrowings, or are invested in interest bearing deposits. We regularly consider the financial environment, prevailing interest rates and the life of our community assets, to ascertain a treasury position that provides an optimum balance of long- and short-term loans, and fixed and floating interest rates. The 2016–17 Annual Business Plan is forecasting a projected positive cash balance of $3 million for our municipal operations. This will enable us to reduce our holdings in variable short-term borrowings and improve our net financial liabilities position. This does not mean we simply focus on debt minimisation at the expense of providing much-needed improvements in assets to benefit our community. We understand that our community has high service expectations because of our coastal proximity and our high tourism focus, amongst other factors. The current financial environment allows borrowing at low, fixed, long-term interest rates. We believe it is timely to borrow to renew and replace infrastructure and assets for the benefit of the community as outlined within this 2016–17 Annual Business Plan, our Long Term Financial Plan and our Asset Management Plan, which aims to deliver service levels at the lowest possible overall life-cycle cost. Running down the value of assets or not replacing them is very short-sighted and can lead to a lack of community and business confidence, and increased expenditure in future years. We have a risk management framework, and an Audit Committee that comments on strategic and operational risk management. This is done holistically, having regard for all aspects of financial and overall risk management. Guided by our Long Term Financial Plan, our financial management takes a long-term view that ensures we maintain a sustainable financial and asset management position.

2016–17 ANNUAL BUSINESS PLAN

Rate comparisons Comparing our rates with those of other councils is a complex issue. Each council has different characteristics (such as size, demographics, residential base and growth etc) and provides either different services or similar services at different standards. Councils provide a broad range and level of services to our communities and, although some of these are statutory requirements, the majority are determined by the expectations of our specific communities. The cost of providing and maintaining these services is spread across the community in the form of rates. We determine a rate in the dollar, based on the amount of revenue that will be required to meet the ongoing cost of providing services to our community for the coming year. The amount of rates you pay is determined by multiplying your property’s value by the rate in the dollar. For example, if the property value is $500,000 and the rate in the dollar is 0.00223 cents in a dollar, the rates payable will be $1,115. The charts on the following page show a comparison of the average residential rate for Adelaide metropolitan councils for 2015–16. The average (mean) residential rate for the City of Holdfast Bay in 2015–16 was $1,406. This represented a rate of 0.0026601 cents in the dollar of property value. We were able to deliver our program of services and projects outlined in the 2015–16 Annual Business Plan, with a residential rate that compares favourably to other South Australian council areas.

0.000

30 Mitcham Unley Prospect Walkerville

Marion

Tea Tree Gully

Salisbury

Norwood/Payneham/ St Peters

Campbelltown

Playford

Marion

Charles Sturt

Salisbury

West Torrens

Onkaparinga

0.001

Tea Tree Gully

0.002

Prospect

0.003

Onkaparinga

0.004

Campbelltown

0.005

Holdfast Bay

2015–16 Residential rate-in-the-dollar comparison

Mitcham

Charles Sturt

Port Adelaide Enfield

Unley

Holdfast Bay

West Torrens

Norwood/Payneham/ St Peters

Walkerville

Port Adelaide Enfield

Playford

CITY OF HOLDFAST BAY

2015–16 Average (mean) residential rate comparison

2000

1750

1500

1250

1000

750

500

250

2016–17 ANNUAL BUSINESS PLAN

What will you pay in rates? The amount you pay is determined by the valuation of your property and the way we apportion rates across the community. We endeavour to apportion rates across the community in an equitable fashion. Based on 2016–17 property valuation information, the rate increase for the average (mean) residential premises will be approximately $29 or $7.25 per quarter. This is the equivalent of 55c per week. Rating policy Section 147 of the Local Government Act 1999, provides Council with the power to rate all land within the City of Holdfast Bay – except for land specifically exempted, such as Crown land and land occupied by Council. We continually review our rating policy to ensure that it is fair and equitable to all. Our current rating policy, adopted in June 2016, is available at the Brighton Civic Centre and can be downloaded at holdfast.sa.gov.au. Land valuation method We use the capital value determined by the State Valuation Office as the basis for valuing land and calculating rates as we feel that this method provides the fairest and most efficient method of distributing the rate burden across all ratepayers. If you are dissatisfied with your valuation, you can object to the State Valuation Office in writing within 60 days of receiving the notice of valuation, explaining why you object. Residential rates Our 2016–17 Annual Business Plan and financial statements have been based on a rate revenue increase of 2.9 per cent, excluding separate rates. The average (mean) value of properties in the City of Holdfast Bay in 2016–17 is $542,515, with the average (mean) rate of $1,435. Industrial, commercial property and vacant land rates We apply a differential rate to industrial, commercial properties and vacant land. This applies a premium based on the principle that industrial and commercial properties place a greater burden on infrastructure and achieve direct benefits from Council parking and health regulations, event and tourism etc. For vacant land, the differential rate provides an incentive to encourage property development. In 2015–16 a differential premium 50 per cent above the residential rate has been applied, equating to 13.8 per cent of total rate revenue ($4.30 million) being paid by this sector. This premium compares favourably with the metropolitan average of 85 per cent as shown in the chart on the following page.

CITY OF HOLDFAST BAY

2015–16 Metropolitan differential rate premium comparison 250 200 150 100

Charles Sturt

West Torrens

Port Adelaide Enfield

Prospect

Mitcham

Unley

Metro Average

Marion

Walkerville

Tea Tree Gully

Holdfast Bay

Salisbury

Onkaparinga

Norwood/Payneham/ St Peters

In 2016–17, revenue from the Differential Rate applying to commercial industrial and undeveloped vacant properties will be maintained at 13.8 per cent of our overall general rate. This represents a Differential Rate premium of 50 per cent. Separate rate We levy two separate rates on specific ratepayers to provide funding for activities and services related to those ratepayers. They are as follows: 1. The Jetty Road Mainstreet Separate Rate, which is applied to properties within the Jetty Road Mainstreet precinct to promote and enhance business viability and trade in the Jetty Road shopping precinct. Revenue from this separate rate is expected to be $553,000 in 2016–17, which represents a 1.7 per cent increase in the rate levied in 2015–16. 2. The Patawalonga Marina Separate Rate, which is applied to properties that are within the basin of the Patawalonga bounded by the high water mark and comprised of marina berths. This separate rate provides funding for the ongoing maintenance of the Patawalonga lock. Because the lock is also widely used by the general public, this rate is adjusted by 50 per cent. The Patawalonga Marina Separate Rate for 2016–17 is expected to raise $68,000. We will continue to calculate this rate this way, adjusting slightly to account for the actual maintenance costs occurred each year, as it offers the greatest amount of certainty for ratepayers. Natural Resource Management Levy The Natural Resource Management (NRM) Levy is collected on behalf of the State Government’s Adelaide and Mount Lofty Ranges Resource Management Board. In 2016–17 the NRM Levy for properties in the City of Holdfast Bay will increase by $80,369 to $1.11 million. This represents a 7.8 per cent increase on the levy applied in 2015–16. Rebates We are required to provide mandatory rebates under Sections 160 to 165 of the Local Government Act 1999 in relation to properties: • predominantly used for service delivery or administration by a hospital or health centre (Section 160) • predominantly used for service delivery or administration by a community service organisation (Section 161)

2016–17 ANNUAL BUSINESS PLAN

• containing a church or other building used for public worship or used solely for religious purposes (Section 162) • being used for the purpose of a public cemetery (Section 163) • occupied by a government school under a lease or licence or a non-government school being used for educational purposes (Section 165). In addition, we may provide discretionary rebates under Section 166 where: • the rebate is desirable for the purpose of securing the proper development of the area or assisting or supporting a business • the land is being used for educational purposes, agricultural, horticultural or floricultural exhibitions, a hospital or health centre; to provide facilities or services for children or young people; to provide accommodation for the aged or disabled; for a residential aged care facility or a day therapy centre, or by an organisation which, in the opinion of Council, provides a benefit or service to the local community • the rebate relates to common property or land vested in a community corporation over which the public has a free and unrestricted right of access and enjoyment • the rebate is considered by Council to be appropriate to provide relief against what would otherwise amount to a substantial charge in rates payable due to a change in the basis of valuation. We have previously provided a rebate of 25 per cent on State- and Local-Heritage-Listed properties. This rebate equated to total of $150,000. We are seeking to provide greater incentive to ratepayers who own heritage-listed properties to invest in maintaining, restoring and preserving these properties by reintroducing a more targeted grant scheme. It is therefore proposed to phase out the rebate system over three years in favour of a reintroduced grant scheme. This will see the heritage rebate reduced to 17 percent in 2016–17, with the $50,000 saving allocated to fund a Shopfront Character and Heritage Grants scheme. This scheme will also incorporate grant funding for the upgrade of shop fronts in our premier shopping precincts to ensure that the heritage, character and attractiveness of these precincts are maintained. Based on the initial pool of funds, it is proposed to apply the Shopfront Character Grant component of the scheme to the Jetty Road Glenelg precinct as a pilot area/precinct. Piloting this scheme in a set precinct is likely to achieve more visible outcomes that we can monitor and evaluate before potentially opening it up to other areas (or expanding available funds). Jetty Road Glenelg contains a number of iconic character and heritage buildings, and is located adjacent the Central Glenelg Village Historic Conservation Area. The area attracts both local residents and visitors (eg, tourists) and is currently supported by a trader advisory group. The impending Jetty Road Glenelg and Environs Masterplan process will also consider opportunities and incentives to work with traders, landlords and business owners to upgrade buildings commensurate with the resultant streetscape and public realm upgrades. Minimum rate We impose a minimum amount payable by way of rates. For 2016–17, the minimum rate is set at $923. Rate relief Support is available for people experiencing difficulty in paying their rates. For further information please contact our Customer Service team on 8229 9999. A residential rate cap is applied to provide relief to ratepayers who own properties that have been subject to increases in valuations that are deemed excessive. Council determined that residential ratepayers could apply for a reduction in their 2016–17 rates where they could demonstrate an increase in their annual rate bill in excess of 7 per cent.

CITY OF HOLDFAST BAY

OUR FINANCIAL TARGETS Our financial targets are: 1. to achieve an operating ratio of 0–10 per cent over a five-year period 2. to achieve a net financial liabilities ratio of less than 75 per cent 3. to improve our asset sustainability ratio to be within the range of 90–110 per cent over a five-year period. 1. To achieve an operating ratio of 0–10 per cent over a five-year period In 2016–17 we will raise $33.72 million in rate revenue (including separate rates and the NRM Levy) and this will yield an operating ratio of 1.1 per cent (municipal). Currently our operating ratio measure over the five-year period from 2011–12 to mid-2016 is 1.6 per cent. The operating ratio is the operating result expressed as a percentage of rate revenue. Our operating result is the difference between recurrent income and recurrent operating expenditure. Recurrent income is made up of revenue received each year in the ordinary course of our activities, such as rate revenue, user and statutory charges and operating grants, but excluding capital grants. Recurrent operating expenditure is incurred in the ordinary course of providing services, including a charge for depreciation of our infrastructure and assets. Depreciation can be regarded as the cost of wear and tear. The operating result is expressed as a surplus (where income exceeds expenditure) or a deficit (where expenditure exceeds income). While we strive to maintain a balanced budget or small surplus each year, we recognise that current cost movements, particularly in areas where we have little control, will increase the possibility of an operational deficit being forecast in future years. An operating deficit indicates that the cost of services we provide are not being adequately funded and current users are not paying enough for the use of our services and infrastructure. Continued operational deficits would indicate that we were not able to maintain a financially sustainable outcome into the future. As a result we continue to review our revenue and expenditure, to supply services that are efficient and effective in meeting the needs of the community. We are committed to a balanced budget or modest operating surplus. To achieve this we constantly undertake reviews of the services provided to our community, and our business processes, to provide the most cost-effective and efficient service delivery. In 2016–17, we will continue to monitor and review Council’s operations to ensure that we can continue to meet our community’s expectations in a financially sustainable way.

2016–17 ANNUAL BUSINESS PLAN

2. To achieve a net financial liabilities ratio of less than 75 per cent Our current ceiling for our net financial liabilities ratio is 75 per cent. The net liabilities ratio is a measure of the size of our net financial liabilities (which is what we owe others, minus what others owe us), as a percentage of its total operating revenue. However from time to time it is acceptable to exceed this ceiling, particularly when low interest rates offer the opportunity to develop infrastructure and facilities that will provide long-term benefit to the community. In 2016–17 the net financial liabilities ratio is forecast to reduce from our current position of 64 per cent to 59 per cent (excluding Alwyndor Aged Care). The ratio is expected to decline in subsequent years as our fixed-term debt is reduced. An additional, and arguably more relevant, indicator of our ability to manage and service debt is its interest cover ratio. It is measured by calculating our net financial interest as a percentage of the overall operating revenue. Council has set a ceiling of 5 per cent for this ratio. A ratio of 5 per cent indicates that, for every $100 of revenue, $5 is spent on net interest payments. In 2016−17 our interest cover ratio is forecast to be 2.5 per cent (excluding Alwyndor Aged Care). Our net financial liabilities and interest cover ratio indicates that we remain in a strong and sustainable financial position to manage our debt levels. 3. To improve our asset sustainability ratio to be within the range of 90–110 per cent over a five-year period We predict that our asset sustainability ratio for the 2016–17 financial year will be 72 per cent (including Alwyndor Aged Care). The asset sustainability ratio typically fluctuates from one year to the next as a result of the timing of major asset renewal and replacement programs (ie renewal and replacement of an asset usually happens at periodic intervals). Currently our asset sustainability ratio measure over the five-year period from 2011–12 to mid-2016 is 70 per cent. The asset sustainability ratio measures the level of our capital expenditure on the renewal and replacement of existing infrastructure and assets, relative to their depreciation. It indicates whether existing infrastructure and assets are being renewed or replaced at the same rate that our overall asset stock is wearing out. An asset sustainability ratio of less than 100 per cent indicates that our asset stock is wearing out faster than it is being renewed or replaced. Conversely, an asset sustainability ratio greater than 100 per cent indicates that we are renewing or replacing our infrastructure and assets faster than they are wearing out.

CITY OF HOLDFAST BAY

MEASURING OUR PERFORMANCE We have appointed an audit committee, which includes three independent members with relevant qualifications and experience to provide advice and recommendations on financial and governance matters. Our performance is measured against the following: • a range of financial reports including monthly financial statements, budget updates, four annual comprehensive budget reviews and the presentation of audited financial statements as required under the Local Government Act 1999 • the city scorecard, which measures how we are working towards achieving our community objectives • the corporate scorecard, which measures our internal operations that aim to improve the way we deliver services.

CITY SCORECARD In addition to outlining our vision and direction, Our Place identifies the measures, which are expressed as key performance indicators, used to monitor and assess our performance. This underlines our obligation to be accountable and assure our community that we are properly managing a steady progress towards the outcomes promised in Our Place. The city scorecard aims to provide the community with this assurance and build a high level of trust that we will deliver.

CORPORATE SCORECARD The corporate scorecard measures the health of our organisation and its fitness and ability to deliver our objectives as expressed in Our Place. This scorecard measures our performance in five key areas: 1. Systems and processes (governance, legislative compliance, progress of our Annual Business Plan) 2. Finance (management of adopted operational budget and capital budget) 3. Assets (delivery of our Capital Works Program and major projects) 4. People (management of human resources, occupational health, welfare and safety and organisational culture) 5. Service delivery (customer service standards and delivery of services).

2016–17 ANNUAL BUSINESS PLAN

REPORTING CURRENT PERFORMANCE We will report on our progress towards our 2016–17 financial year objectives in our 2016–17 Annual Report. Table of indicators and targets INDICATOR

TARGET

COMMUNITY ENGAGEMENT BASED INDICATORS Community’s quality of life rating

85%

Community satisfaction with our delivery of quality services and maintenance assets

80%

Community perception of personal safety and security

80%

Community satisfaction with our management of the environment and promotion of environmental sustainability

80%

Community satisfaction with our community consultation and information activities

80%

Community satisfaction with the quality, accessibility and availability of open space

80%

Community satisfaction with the promotion of tourism, events, and the local economy

80%

Community satisfaction with the provision and maintenance of public toilets

80%

Community satisfaction with the provision and maintenance of walking and cycling trails

80%

ACTIVITY-BASED INDICATORS Progress of capital projects, plans and service initiatives

95%

Number of volunteers participating in community activities

400

Number of trees planted in streets and open spaces

200

Progress of environmental projects developed under the sustainability plan

95%

Number of people attending environmental education programs

250

Level of greenhouse emissions Amount of household waste diverted from landfill per household Total number of events

10% reduction 0.12 tonnes 170

Consolidated operating result

Surplus

Consolidated operating ratio (rolling average over five years)

0–10%

Net liabilities ratio Asset sustainability ratio (rolling average over 10 years)

<35% 90–110%

CITY OF HOLDFAST BAY

FINANCIAL STATEMENTS CITY OF HOLDFAST BAY PROJECTED FINANCIAL STATEMENTS BUDGET FUNDING STATEMENT - MUNICIPAL FUNDS

Municipal 15/16 Original BUDGET $ 30,886,000 Rates - General 544,218 Rates - Jetty Road Glenelg 65,600 Rates - Patawalonga Marina 1,027,394 Rates - NRM Levy 2,172,641 Statutory Charges 3,478,908 User Charges 3,014,637 Operating Grants & Subsidies 90,500 Investment Income 632,900 Reimbursements 542,320 Other 106,000 Share of profit - joint ventures 42,561,118 Operating Revenue 16,630,663 17,803,006 854,274 7,811,904 (663,400) 42,436,447 124,671

16,976,934 18,321,266 1,121,621 8,123,500 ( 776,669) 310,760 44,077,412 472,779

7,811,904 271,000 8,082,904 8,207,575

Depreciation Other non-cash provisions Plus Non-Cash items in Operating Surplus/Deficit = Funds Generated from Operating Activities

8,123,500 309,060 8,432,560 8,905,339

7,344,000 783,640 8,127,640

Amounts received for new/upgraded assets Proceeds from disposal of assets Plus funds sourced from Capital Activities

200,001 2,294,690 2,494,691

(4,769,306) (17,183,460) (663,400) (22,616,166)

Employee Costs - Salaries & Wages Materials, contracts and other expenses Finance Charges Depreciation Less full cost attribution - % admin costs capitalised 16/17 New Initiatives - Operating Less Operating Expenditure = Operating Surplus/(Deficit)

Municipal 16/17 BUDGET $ 31,987,100 553,470 67,900 1,107,763 2,106,188 3,799,344 3,433,876 32,500 717,560 624,490 120,000 44,550,191

Capital Expenditure-Asset Renewal and Replacement Capital Expenditure-New and Upgraded Assets Capital Expenditure-Full Cost Attribution 16/17 New Initiatives - Capital Less total capital expenditure

( 5,346,800) ( 265,201) ( 776,669) ( 2,196,682) ( 8,585,352)

35,906 Plus: Repayments of loan principal by sporting groups 35,906 Plus/(less) funds provided (used) by Investing Activities (6,245,045) = FUNDING SURPLUS/(REQUIREMENT)

155,660 155,660 2,970,338

Funded by: (2,100,000) Increase/(Decrease) in cash and cash equivalents (5,886,961) Less: Proceeds from new borrowings 1,741,916 Plus: Principal repayments of borrowings (6,245,045)

1,153,533 1,816,805 2,970,338

2016â&#x20AC;&#x201C;17 ANNUAL BUSINESS PLAN

CITY OF HOLDFAST BAY PROJECTED FINANCIAL STATEMENTS BUDGET FUNDING STATEMENT - ALWYNDOR FUNDS

Alwyndor 15/16 Original BUDGET $ 3,554,924 User Charges 12,153,539 Operating Grants & Subsidies 289,361 Investment Income 5,425 Reimbursements 417,549 Other 16,420,798 Operating Revenue

12,031,647 Employee Costs - Salaries & Wages 3,174,360 Materials, contracts and other expenses 60,713 Finance Charges 812,623 Depreciation 16,079,343 Less Operating Expenditure 341,455 = Operating Surplus/(Deficit) 812,623 812,623 1,154,078

Depreciation Other non-cash provisions Plus Non-Cash items in Operating Surplus/Deficit = Funds Generated from Operating Activities

(367,077) Capital Expenditure-Asset Renewal and Replacement (367,077) Less total capital expenditure 787,001

787,001 787,001

= FUNDING SURPLUS Funded by: Increase/(Decrease) in cash and cash equivalents

Alwyndor 16/17 BUDGET $ 3,679,844 12,782,160 307,339 4,084 434,570 17,207,997 12,539,284 3,272,371 60,000 862,480 16,734,135 473,862 862,480 260,932 1,123,412 1,597,274 ( 435,100) ( 435,100) 1,162,174

1,162,174 1,162,174

CITY OF HOLDFAST BAY

Consolidated 15/16 Original BUDGET $ 30,886,000 544,218 65,600 1,027,394 2,172,641 7,033,832 15,168,176 379,861 638,325 959,869 106,000 58,981,916 28,662,310 20,977,366 914,987 8,624,527 ( 663,400) 58,515,790 466,126 8,624,527 271,000 8,895,527 9,361,653

CITY OF HOLDFAST BAY PROJECTED FINANCIAL STATEMENTS - CONSOLIDATED BUDGET FUNDING STATEMENT

Rates - General Rates - Jetty Road Glenelg Rates - Patawalonga Marina Rates - NRM Levy Statutory Charges User Charges Operating Grants & Subsidies Investment Income Reimbursements Other Share of profit - joint ventures Operating Revenue Employee Costs - Salaries & Wages Materials, contracts and other expenses Finance Charges Depreciation Less full cost attribution - % admin costs capitalised 16/17 New Initiatives - Operating Less Operating Expenditure = Operating Surplus/(Deficit) Depreciation Other non-cash provisions Plus Non-Cash items in Operating Surplus/Deficit = Funds Generated from Operating Activities

7,344,000 Amounts received for new/upgraded assets 783,640 Proceeds from disposal of assets 8,127,640 Plus funds sourced from Capital Activities ( 5,136,383) ( 17,183,460) ( 663,400) ( 22,983,243)

Capital Expenditure-Asset Renewal and Replacement Capital Expenditure-New and Upgraded Assets Capital Expenditure-Full Cost Attribution 16/17 New Initiatives - Capital Less total capital expenditure

Consolidated 16/17 BUDGET $ 31,987,100 553,470 67,900 1,107,763 2,106,188 7,479,188 16,216,036 339,839 721,644 1,059,060 120,000 61,758,188 29,516,218 21,593,637 1,181,621 8,985,980 ( 776,669) 310,760 60,811,547 946,641 8,985,980 569,992 9,555,972 10,502,613 200,001 2,294,690 2,494,691 ( 5,781,900) ( 265,201) ( 776,669) ( 2,196,682) ( 9,020,452)

35,906 Plus: Repayments of loan principal by sporting groups 35,906 Plus/(less) funds provided (used) by Investing Activities ( 5,458,044) = FUNDING SURPLUS/(REQUIREMENT)

155,660 155,660 4,132,512

Funded by: ( 1,312,999) Increase/(Decrease) in cash and cash equivalents ( 5,886,961) Less: Proceeds from new borrowings 1,741,916 Plus: Principal repayments of borrowings ( 5,458,044)

2,315,707 1,816,805 4,132,512

2016â&#x20AC;&#x201C;17 ANNUAL BUSINESS PLAN

Municipal 15/16 Original BUDGET $ 30,886,000 544,218 65,600 1,027,394 2,172,641 3,478,908 3,014,637 90,500 632,900 542,320 106,000 42,561,118 16,630,663 17,803,006 854,274 7,811,904 (663,400) 42,436,447 124,671

CITY OF HOLDFAST BAY PROJECTED INCOME STATEMENT- MUNICIPAL FUNDS FOR THE YEAR ENDED 30TH JUNE 2017

Municipal 16/17 BUDGET $ 31,987,100 553,470 67,900 1,107,763 2,106,188 3,799,344 3,433,876 32,500 717,560 624,490 120,000 44,550,191

EXPENSES Employee Costs Materials, contracts and other expenses Finance Charges Depreciation Less full cost attribution 16/17 New Initiatives - Operating TOTAL EXPENSES

16,976,934 18,321,266 1,121,621 8,123,500 ( 776,669) 310,760 44,077,412

Operating Surplus/(Deficit) - Before Capital Revenue

472,779

7,344,000

Amounts specifically for new or upgraded assets

200,001

7,468,671

NET SURPLUS/(DEFICIT)

672,780

CITY OF HOLDFAST BAY

CITY OF HOLDFAST BAY PROJECTED INCOME STATEMENT - ALWYNDOR FUNDS FOR THE YEAR ENDED 30TH JUNE 2017

Alwyndor 15/16 BUDGET $ 3,554,924 12,153,539 289,361 5,425 417,549 16,420,798

REVENUES User Charges Operating Grants & Subsidies Investment Income Reimbursements Other Share of profit - joint ventures TOTAL REVENUES

12,031,647 3,174,360 60,713 812,623 16,079,343

EXPENSES Employee Costs Materials, contracts and other expenses Finance Charges Depreciation TOTAL EXPENSES

Alwyndor 16/17 BUDGET $ 3,679,844 12,782,160 307,339 4,084 434,570 17,207,997 12,539,284 3,272,371 60,000 862,480 16,734,135

341,455

Operating Surplus/(Deficit) - Before Capital Revenue

473,862

341,455

NET SURPLUS/(DEFICIT)

473,862

2016â&#x20AC;&#x201C;17 ANNUAL BUSINESS PLAN

Consolidated 15/16 ORIGINAL BUDGET $ 30,886,000 544,218 65,600 1,027,394 2,172,641 7,033,832 15,168,176 379,861 638,325 959,869 106,000 58,981,916 28,662,310 20,977,366 914,987 8,624,527 ( 663,400) 58,515,790 466,126

CITY OF HOLDFAST BAY PROJECTED INCOME STATEMENT - CONSOLIDATED FOR THE YEAR ENDED 30TH JUNE 2017

REVENUES Rates - General Rates - Jetty Road Glenelg Rates - Patawalonga Marina Rates - NRM Levy Statutory Charges User Charges Operating Grants & Subsidies Investment Income Reimbursements Other Share of profit - joint ventures TOTAL REVENUES EXPENSES Employee Costs Materials, contracts and other expenses Finance Charges Depreciation Less full cost attribution 16/17 New Initiatives - Operating TOTAL EXPENSES Operating Surplus/(Deficit) - Before Capital Revenue

7,344,000 Amounts specifically for new or upgraded assets 7,810,126 NET SURPLUS/(DEFICIT)

CITY OF HOLDFAST BAY

Municipal 15/16 Original BUDGET $ 543,000 1,699,000 11,000 2,253,000 2,204,351 2,120,000 593,895,437 598,219,788 600,472,788

CITY OF HOLDFAST BAY PROJECTED BALANCE SHEET - MUNICIPAL FUNDS AS AT 30TH JUNE 2017

CURRENT ASSETS Cash and cash equivalents Trade and Other Receivables Inventory TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial Assets Equity accounted investments-Council businesses Land, Infrastructure, Property, Plant & Equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS

3,655,000 5,029,000 2,981,000 11,665,000

CURRENT LIABILITIES Trade and Other Payables Borrowings Short-term Provisions TOTAL CURRENT LIABILITIES

19,897,193 302,000 66,000 20,265,193

NON-CURRENT LIABILITIES Long-term Borrowings Long-term Provisions Other Non-current Liabilities TOTAL NON-CURRENT LIABILITIES

31,930,193

TOTAL LIABILITIES

568,542,595 NET ASSETS 163,126,595 405,416,000 568,542,595

Municipal 15/16 Original BUDGET $ 153,557,924 7,468,671 2,100,000 163,126,595

EQUITY Accumulated Surplus Asset Revaluation Reserve Other Reserves TOTAL EQUITY CITY OF HOLDFAST BAY PROJECTED STATEMENT OF CHANGES IN EQUITY - MUNICIPAL FUNDS FOR THE YEAR ENDED 30TH JUNE 2017

ACCUMULATED SURPLUS Balance at beginning of period Net Surplus/(Deficit) Transfers from reserves Balance at end of period

405,416,000 ASSET REVALUATION RESERVE - MUNICIPAL RESERVES

Municipal 16/17 BUDGET $ 1,637,389 1,719,377 10,556 3,367,322 2,172,431 2,517,350 618,189,166 622,878,947 626,246,269 3,465,222 2,006,533 3,184,110 8,655,865 22,575,075 367,189 22,942,264 31,598,129 594,648,140

159,383,857 435,264,000 283 594,648,140

Municipal 16/17 BUDGET $ 158,711,077 672,780 159,383,857 435,264,000 283

405,416,000 TOTAL RESERVES CLOSING BALANCE

435,264,283

568,542,595 TOTAL EQUITY

594,648,140

2016â&#x20AC;&#x201C;17 ANNUAL BUSINESS PLAN

Alwyndor 15/16 BUDGET $

CITY OF HOLDFAST BAY PROJECTED BALANCE SHEET - ALWYNDOR FUNDS AS AT 30TH JUNE 2017

10,021,243 2,241,490 12,262,733

CURRENT ASSETS Cash and cash equivalents Trade and Other Receivables Inventory TOTAL CURRENT ASSETS

38,659,918 38,659,918

NON-CURRENT ASSETS Land, Infrastructure, Property, Plant & Equipment TOTAL NON-CURRENT ASSETS

50,922,651 25,241,172 1,318,668 26,559,840 115,601 115,601 26,675,441

TOTAL ASSETS CURRENT LIABILITIES Trade and Other Payables Short-term Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES

24,247,210 NET ASSETS 11,516,819 6,419,288 6,311,103 24,247,210

Alwyndor 15/16 BUDGET $ 11,175,364 341,455 11,516,819

EQUITY Accumulated Surplus Asset Revaluation Reserve Other Reserves TOTAL EQUITY CITY OF HOLDFAST BAY PROJECTED STATEMENT OF CHANGES IN EQUITY - ALWYNDOR FUNDS FOR THE YEAR ENDED 30TH JUNE 2017

ACCUMULATED SURPLUS Balance at beginning of period Net Surplus/(Deficit) Transfers from reserves Balance at end of period

Alwyndor 16/17 BUDGET $ 11,274,129 777,099 12,051,228 38,314,075 38,314,075 50,365,303 24,225,601 1,383,258 25,608,859 138,211 138,211 25,747,070 24,618,233

11,887,842 6,419,288 6,311,103 24,618,233

Alwyndor 16/17 BUDGET $ 11,413,980 473,862 11,887,842

6,419,288 ASSET REVALUATION RESERVE

6,419,288

6,311,103 ALWYNDOR RESERVES

6,311,103

12,730,391 TOTAL RESERVES CLOSING BALANCE

12,730,391

24,247,210 TOTAL EQUITY

24,618,233

CITY OF HOLDFAST BAY

Consolidated 15/16 ORIGINAL BUDGET $ 10,564,243 3,940,490 11,000 14,515,733 2,204,351 2,120,000 632,555,355 636,879,706

CITY OF HOLDFAST BAY PROJECTED BALANCE SHEET - CONSOLIDATED AS AT 30TH JUNE 2017

651,395,439 TOTAL ASSETS

12,911,518 2,496,476 10,556 15,418,550 2,172,431 2,517,350 656,503,241 661,193,022 676,611,572

28,896,172 5,029,000 4,299,668 38,224,840

CURRENT LIABILITIES Trade and Other Payables Borrowings Short-term Provisions TOTAL CURRENT LIABILITIES

27,690,823 2,006,533 4,567,368 34,264,724

19,897,193 417,601 66,000 20,380,794

NON-CURRENT LIABILITIES Long-term Borrowings Long-term Provisions Other Non-current Liabilities TOTAL NON-CURRENT LIABILITIES

22,575,075 505,400 23,080,475

58,605,634 TOTAL LIABILITIES 592,789,805 NET ASSETS 174,643,414 411,835,288 6,311,103 592,789,805

Consolidated 15/16 ORIGINAL BUDGET $ 164,733,288 7,810,126 2,100,000 174,643,414

EQUITY Accumulated Surplus Asset Revaluation Reserve Other Reserves TOTAL EQUITY CITY OF HOLDFAST BAY PROJECTED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE 2017

ACCUMULATED SURPLUS Balance at beginning of period Net Surplus/(Deficit) Transfers from reserves Balance at end of period

411,835,288 ASSET REVALUATION RESERVE - MUNICIPAL RESERVES 6,311,103 ALWYNDOR RESERVES

Consolidated 16/17 BUDGET $

57,345,199 619,266,373

171,271,699 441,683,288 6,311,386 619,266,373

Consolidated 16/17 BUDGET $ 170,125,057 1,146,642 171,271,699 441,683,288 283 6,311,103

418,146,391 TOTAL RESERVES CLOSING BALANCE

447,994,674

592,789,805 TOTAL EQUITY

619,266,373

2016â&#x20AC;&#x201C;17 ANNUAL BUSINESS PLAN

Municipal 15/16 Original BUDGET $

42,561,118 (33,499,269) (854,274) 8,207,575

7,344,000 183,640 600,000 35,906 (4,769,306) (17,846,860) (14,452,620)

CITY OF HOLDFAST BAY PROJECTED BUDGETED STATEMENT OF CASH FLOWS - MUNICIPAL FUNDS FOR THE YEAR ENDED 30TH JUNE 2017

CASH FLOWS FROM OPERATING ACTIVITIES Receipts Operating Receipts Payments Operating payments to suppliers and employees Finance Payments NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Receipts Grants specifically for new or upgraded assets Sale of replaced assets Sale of surplus assets Repayments of loans (principal) by community groups Payments Expenditure on renewal/replacement of assets Expenditure on new/upgraded assets NET CASH (USED IN) INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES Receipts 5,886,961 Proceeds from Borrowings - External Payments (1,741,916) Repayments of Borrowings - External 4,145,045 NET CASH PROVIDED BY FINANCING ACTIVITIES (2,100,000) NET INCREASE (DECREASE) IN CASH HELD CASH AND CASH EQUIVALENTS AT BEGINNING OF 2,643,000 REPORTING PERIOD CASH AND CASH EQUIVALENTS AT END OF 543,000 REPORTING PERIOD

Municipal 16/17 BUDGET $ (OUTFLOWS) 44,550,191 ( 34,523,231) ( 1,121,621) 8,905,339

200,001 294,690 2,000,000 155,660 ( 6,023,470) ( 2,561,882) ( 5,935,001)

( 1,816,805) ( 1,816,805) 1,153,533 483,856 1,637,389

RECONCILATION OF INCOME STATEMENT TO BUDGETED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH JUNE 2017 SURPLUS FROM INCOME STATEMENT NON-CASH ITEMS IN INCOME STATEMENT 7,811,904 Depreciation 271,000 Increase (decrease) in provisions - nett 8,082,904 TOTAL NON-CASH ITEMS 7,468,671

CASH ITEMS NOT IN INCOME STATEMENT Capital Expenditure Loan Repayments - External Proceeds from Borrowings - External Repayments of loans (principal) by community groups Proceeds from Disposal of Assets TOTAL CASH ITEMS NET INCREASE/(DECREASE) (2,100,000) IN CASH AND CASH EQUIVALENTS

(22,616,166) (1,741,916) 5,886,961 35,906 783,640 (17,651,575)

672,780 8,123,500 309,060 8,432,560 ( 8,585,352) ( 1,816,805) 155,660 2,294,690 ( 7,951,807) 1,153,533

CITY OF HOLDFAST BAY

CITY OF HOLDFAST BAY PROJECTED BUDGETED STATEMENT OF CASH FLOWS - ALWYNDOR FUNDS FOR THE YEAR ENDED 30TH JUNE 2017 Alwyndor Alwyndor 15/16 16/17 BUDGET BUDGET $ $ (OUTFLOWS) CASH FLOWS FROM OPERATING ACTIVITIES Receipts 16,420,798 Operating Receipts 17,207,997 Payments (15,206,007) Operating payments to suppliers and employees ( 15,550,723) (60,713) Finance Payments ( 60,000) 1,597,274 1,154,078 NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Payments (367,077) Expenditure on renewal/replacement of assets (367,077) NET CASH (USED IN) INVESTING ACTIVITIES 787,001 NET INCREASE (DECREASE) IN CASH HELD CASH AND CASH EQUIVALENTS AT BEGINNING OF 9,234,242 REPORTING PERIOD CASH AND CASH EQUIVALENTS AT END OF 10,021,243 REPORTING PERIOD

( 435,100) ( 435,100) 1,162,174 10,111,955 11,274,129

RECONCILATION OF INCOME STATEMENT TO BUDGETED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH JUNE 2017 SURPLUS FROM INCOME STATEMENT NON-CASH ITEMS IN INCOME STATEMENT 812,623 Depreciation - Increase (decrease) in provisions - nett 812,623 TOTAL NON-CASH ITEMS 341,455

CASH ITEMS NOT IN INCOME STATEMENT (367,077) Capital Expenditure (367,077) TOTAL CASH ITEMS NET INCREASE/(DECREASE) 787,001 IN CASH AND CASH EQUIVALENTS

473,862 862,480 260,932 1,123,412 ( 435,100) ( 435,100) 1,162,174

2016â&#x20AC;&#x201C;17 ANNUAL BUSINESS PLAN

Consolidated 15/16 ORIGINAL BUDGET $

58,981,916 ( 48,705,276) ( 914,987) 9,361,653

7,344,000 183,640 600,000 35,906 ( 5,136,383) ( 17,846,860) ( 14,819,697)

CITY OF HOLDFAST BAY PROJECTED BUDGETED STATEMENT OF CASH FLOWS - CONSOLIDATED FOR THE YEAR ENDED 30TH JUNE 2017

CASH FLOWS FROM FINANCING ACTIVITIES Receipts 5,886,961 Proceeds from Borrowings - External Payments ( 1,741,916) Repayments of Borrowings - External 4,145,045 NET CASH PROVIDED BY FINANCING ACTIVITIES ( 1,312,999) NET INCREASE (DECREASE) IN CASH HELD CASH AND CASH EQUIVALENTS AT BEGINNING OF 11,877,242 REPORTING PERIOD CASH AND CASH EQUIVALENTS AT END OF 10,564,243 REPORTING PERIOD

Consolidated 16/17 BUDGET $ (OUTFLOWS) 61,758,188 ( 50,073,954) ( 1,181,621) 10,502,613

200,001 294,690 2,000,000 155,660 ( 6,458,570) ( 2,561,882) ( 6,370,101)

( 1,816,805) ( 1,816,805) 2,315,707 10,595,811 12,911,518

RECONCILATION OF INCOME STATEMENT TO BUDGETED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH JUNE 2017 SURPLUS FROM INCOME STATEMENT NON-CASH ITEMS IN INCOME STATEMENT 8,624,527 Depreciation 271,000 Increase (decrease) in provisions - nett 8,895,527 TOTAL NON-CASH ITEMS 7,810,126

( 22,983,243) ( 1,741,916) 5,886,961 35,906 783,640 ( 18,018,652)

1,146,642 8,985,980 569,992 9,555,972 ( 9,020,452) ( 1,816,805) 155,660 2,294,690 ( 8,386,907) 2,315,707

CITY OF HOLDFAST BAY

CITY OF HOLDFAST BAY PROJECTED SUMMARY OF OPERATING AND CAPITAL INVESTMENT ACTIVITIES FOR THE YEAR ENDED 30TH JUNE 2017

Municipal 15/16 Original BUDGET $ 42,561,118 Operating Revenues (42,436,447) less Operating Expenses 124,671 Operating Surplus/(Deficit) before Capital Amounts

Less net outlays on Existing Assets 4,769,306 Capital Expenditure on renewal & replacement of existing assets (7,811,904) Less Depreciation (3,042,598) Less outlays on New and Upgraded Assets 17,846,860 Capital Expenditure on new & upgraded assets (7,344,000) Less amounts received for for new & upgraded assets 10,502,860 (7,335,591) Net lending/(borrowing) for financial year

Municipal 15/16 Original BUDGET $

$124,671

0.3% $27,483,842

65%

2.0%

PROJECTED FINANCIAL INDICATORS - MUNICIPAL FUNDS FOR THE YEAR ENDED 30TH JUNE 2017

OPERATING SURPLUS/(DEFICIT) - BEFORE CAPITAL AMOUNTS

6,023,470 ( 8,123,500) ( 2,100,030) 2,561,882 ( 200,001) 2,361,881 210,928

Municipal 16/17 BUDGET $

$472,779

OPERATING SURPLUS RATIO (Operating surplus/(deficit) before capital amounts as % of general revenue and other rates) NET FINANCIAL LIABILITIES - (Total liabilities less financial assets) NET FINANCIAL LIABILITIES RATIO (Total liabilities less financial assets as % of total operating revenue) INTEREST COVER RATIO (Net interest expense as % of total operating revenue less investment income)

ASSET SUSTAINABILITY RATIO (Capital expenditure on renewal/replacement of existing assets, excluding new capital expenditure as % of depreciation expense) 61%

Municipal 16/17 BUDGET $ 44,550,191 ( 44,077,412) 472,779

1.1%

$26,068,932

59%

2.5%

74%

2016â&#x20AC;&#x201C;17 ANNUAL BUSINESS PLAN

CITY OF HOLDFAST BAY PROJECTED SUMMARY OF OPERATING AND CAPITAL INVESTMENT ACTIVITIES FOR THE YEAR ENDED 30TH JUNE 2017 Alwyndor 15/16 BUDGET $ 16,420,798 Operating Revenues (16,079,343) less Operating Expenses 341,455 Operating Surplus/(Deficit) before Capital Amounts

Alwyndor 16/17 BUDGET $ 17,207,997 ( 16,734,135) 473,862

Less net outlays on Existing Assets 367,077 Capital Expenditure on renewal & replacement of existing assets (812,623) Less Depreciation (445,546)

435,100 ( 862,480) ( 427,380)

787,001 Net lending/(borrowing) for financial year

Alwyndor 15/16 BUDGET $

$341,455

2.1% $14,412,708

88%

0.4%

PROJECTED FINANCIAL INDICATORS - ALWYNDOR FUNDS FOR THE YEAR ENDED 30TH JUNE 2017

901,242

Alwyndor 16/17 BUDGET $

OPERATING SURPLUS/(DEFICIT) - BEFORE CAPITAL AMOUNTS OPERATING SURPLUS RATIO (Operating surplus/(deficit) before capital amounts as % of general revenue) NET FINANCIAL LIABILITIES - (Total liabilities less financial assets) NET FINANCIAL LIABILITIES RATIO (Total liabilities less financial assets as % of total operating revenue) INTEREST COVER RATIO (Net interest expense as % of total operating revenue less investment income)

ASSET SUSTAINABILITY RATIO (Capital expenditure on renewal/replacement of existing assets, excluding new capital expenditure as % of depreciation expense) 45%

$473,862

2.8% $13,695,842

80%

0.4%

50%

CITY OF HOLDFAST BAY

CITY OF HOLDFAST BAY PROJECTED SUMMARY OF OPERATING AND CAPITAL INVESTMENT ACTIVITIES FOR THE YEAR ENDED 30TH JUNE 2017 Consolidated Consolidated 15/16 ORIGINAL 16/17 BUDGET BUDGET $ $ 58,981,916 Operating Revenues 61,758,188 ( 58,515,790) less Operating Expenses ( 60,811,547) 466,126 Operating Surplus/(Deficit) before Capital Amounts 946,641 Less net outlays on Existing Assets 5,136,383 Capital Expenditure on renewal & replacement of existing assets ( 8,624,527) Less Depreciation ( 3,488,144) Less outlays on New and Upgraded Assets 17,846,860 Capital Expenditure on new & upgraded assets ( 7,344,000) Less amounts received for for new & upgraded assets 10,502,860

2,561,882 ( 200,001) 2,361,881

( 6,548,590) Net lending/(borrowing) for financial year

1,112,170

Consolidated 15/16 ORIGINAL BUDGET $

$466,126

0.8% $41,896,550

71%

1.6%

PROJECTED FINANCIAL INDICATORS - CONSOLIDATED FOR THE YEAR ENDED 30TH JUNE 2017

ASSET SUSTAINABILITY RATIO (Capital expenditure on renewal/replacement of existing assets, excluding new capital expenditure as % of depreciation expense) 60%

6,458,570 ( 8,985,980) ( 2,527,410)

Consolidated 16/17 BUDGET $

$946,641

1.5% $39,764,774

64%

1.9%

72%

holdfast.sa.gov.au Brighton Civic Centre 24 Jetty Road, Brighton SA 5048 PO Box 19 Brighton SA 5048 E mail@holdfast.sa.gov.au

ALGO/COH4228

P 08 8229 9999â&#x20AC;&#x201A; F 08 8298 4561