Proposed Budget 2012/13 Delivering for our community
TABLE OF CONTENTS Page Introduction from the Mayor, Cr Alec Sandner
1
Chief Executive Officer’s Summary
2
Budget Processes
5
1. Linkage to the Council Plan
6
2. Activities, Initiatives and Key Strategic Activities
9
3. Budget Influences
30
4. Analysis of Operating Budget
34
5. Analysis of Budgeted Cash Position
41
6. Analysis of Capital Budget
45
7. Analysis of Budgeted Financial Position
50
8. Strategic Resource Plan and Key Financial Indicators
53
9. Rating Strategy
57
10. Other Strategies
60
Appendix A - Budgeted Standard Statements
63
Appendix B - Statutory Disclosures
68
Appendix C - Capital Works Program
79
Appendix D - Maps
87
Appendix E - Glossary of Terms
90
Introduction from the Mayor, Cr Alec Sandner Delivering for Our Community The City of Greater Bendigo Council’s proposed Budget for 2012/2013 delivers major projects now and for the future, while providing value for money services and high quality facilities. Our region is experiencing a period of significant growth and this puts pressures on our infrastructure and the services we provide. The challenge for Council is to get the balance right so we can build for the future without placing too great a financial burden on our existing ratepayers. This proposed budget is about striking the right balance; it’s about delivering infrastructure and services for our community in a financially responsible manner. In 2012/2013, we propose increasing rates by 5.5 per cent. This is less than the 6 per cent increase forecast at the time of our last budget (to assist ratepayers of lower valued properties in meeting financial commitments, Council will reduce the Municipal Charge by a further $34.40 to $64.80. In return we will invest this money, plus the additional funds we receive in State and Federal grants and fees and charges, in projects and services that matter to our community. Service delivery is our core business. We provide services across a wide spectrum. In Aged and Disability Services we have allocated $10.4 million, including $3.2 million for General Home Care, $1.7 million for Personal Care and $1.1 million for Respite Care. The draft budget includes $7 million for Children and Family Services, including $2.2 million for Maternal and Children’s Health and $3.3 million for Long Day Care. The City collects some 28,000 tonnes of garbage from residential properties each year. In 2012/2013, we plan to spend $2.3 million on garbage collection and $1.9 million on recycling. The draft budget includes significant funding to maintain, upgrade and improve our many sport and recreation facilities and $8.1 million to manage our many parks and natural reserves. Our capital works budget will be $51.5 million. The City is responsible for maintaining around 1400kms of sealed roads and more than 1300kms of unsealed roads. We will provide $11 million for road infrastructure projects, including more than $7 million on road renewal work for sealed roads and $2 million on road renewal work for unsealed roads. More than $5.4 million has been set aside for drainage works, $1.2 million for bicycle and walking paths and $1.1 million for footpaths. The draft budget also includes $6.5 million towards the Bendigo Art Gallery expansion and $6.5 million for the Bendigo Redevelopment, $2 million for the completion of the Edward Street car park, and $500,000 to commence the Bendigo Theatre project. While we will deliver an extensive range of services and construction projects during 2012/13 we will also undertake planning for the future of Greater Bendigo. Our population is growing at 1.5% per year, and expected to reach 150,000 by 2036. Strategic planning is important to ensure we can maintain and improve the amenity of the city as we grow. In 2012/13 we will undertake a Residential Development Strategy to plan for future housing, an Integrated Transport and Land Use Strategy to ensure efficient movement of people, a Waste Management Strategy, and we will continue to implement policy that will protect our significant heritage assets into the future. I am confident that this proposed budget will continue the City of Greater Bendigo’s track record for delivering quality infrastructure and services through prudent financial management. Residents and other interested members of the community are welcome to view and make submissions on the budget. Detailed information is available at www.bendigo.vic.gov.au or by contacting our Council Offices. Cr Alec Sandner Mayor Proposed Greater Bendigo City Council Budget 2012/13
1
Chief Executive Officer’s Summary Council has prepared a Budget for the 2012/13 financial year which seeks to balance the demand for services and infrastructure with the community’s capacity to pay. Key budget information is provided below about the rate increase, operating result, cash and investments, capital works and financial position of the Council. Any columns in graphs below labelled A2010/11 reflect Actual figures for 2010/11, F2011/12 reflect Forecast figures for 2011/12, columns labelled B2012/13 reflect Budget figures for 2012/13 and columns labelled SRP reflect Strategic Resource Plan figures for years 2013-2016. 1. Rates 10.0
% r a te i n cr e
8.0 6.0 4.0
5.9
5.5
F2011/12
B2012/13
6.0
6.0
6.0
SRP2013/14
SRP2014/15
SRP2015/16
4.5
2.0 0.0 A2010/11
The general rates increase by 5.5% for the 2012/13 year, will raise total rates and charges of $79.71 million, including $1.3 million generated from supplementary rates. 2. Operating Result
su r p l u s / - d e fi ci
30.0 24.92 20.0 19.90
21.52 14.38
10.0
16.21
16.12
SRP2013/14
SRP2014/15
0.0 A2010/11
F2011/12
B2012/13
SRP2015/16
The expected operating result for the 2012/13 year is a surplus of $14.38 million, which is a decrease of $7.14 million over 2011/12. The decrease is due mainly to increases in cost of service delivery, increased depreciation, and the impact of receiving six quarters of Grants Commission funding in 2011/12 resulting in only two quarters budgeted for 2012/13.
2
Proposed Greater Bendigo City Council Budget - 2012/13
3. Cash and Investments 40.0
ca sh o n h a n d
39.31 30.0
33.76
34.95 31.58 27.22
20.0 10.0 0.0 A2010/11
F2011/12
B2012/13
SRP2013/14
SRP2014/15
SRP2015/16
Cash and investments are expected to decrease by $7.73 million during the year to $27.22 million as at 30 June 2013. This reflects Council's strategy of using excess cash and investments to enhance service delivery and enable the renewal and upgrade of existing infrastructure and the creation of new infrastructure. 4. Capital Works
60.0
ca p ita l w o r k s
50.0
54.31
52.18
51.53 45.62
40.0 30.0
40.05 29.78
20.0 10.0 0.0 A2010/11
F2011/12
B2012/13
SRP2013/14
SRP2014/15
SRP2015/16
The Capital Works program for the 2012/13 year is $51.53 million. Some projects will be carried forward for completion from the 2011/12 year. The carried forward component is fully funded from the 2011/12 budget. Of the $51.53 million in Capital funding required, $24.04 million will come from Working Capital/Council operations, $15.63 million from external grants, contributions and asset sales, $11.30 million will come from loan borrowings and the balance of $560,000 from cash and investments. The capital expenditure program has been set and prioritised based on a process that has enabled Council to assess needs for projects. (Capital Works is forecast to be $54.31 million for the 2011/12 year).
Proposed Greater Bendigo City Council Budget - 2012/13
3
5. Financial Position 1400.0
N e t A ss e ts l
1200.0 1000.0
1,240
1,096
1,167
1,204
1,285
1,136
A2010/11
F2011/12
B2012/13
SRP2013/14
SRP2014/15
SRP2015/16
800.0 600.0 400.0 200.0 0.0
The financial position is expected to improve with net assets (net worth) to increase by $31.35 million to $1.17 billion although net current assets (working capital) will reduce by $2.90 million to $15.42 billion as at 30 June 2013. This is mainly due to the use of cash reserves to fund the capital works program. (Total equity is forecast to be $1.14 billion as at 30 June 2012). This budget has been developed through a rigorous process of preparation and review. More detailed budget information is available throughout this document.
Craig Niemann Chief Executive Officer
4
Proposed Greater Bendigo City Council Budget - 2012/13
Budget Processes This section lists the budget processes undertaken in order to adopt the budget in accordance with the Local Government Act 1989 (the Act) and Regulations. The preparation of the budget begins with Officers preparing the operating and capital components of the annual budget between January and March. A draft consolidated budget is then prepared and various iterations are considered by Councillors at informal briefings during March and April. A proposed budget is prepared in accordance with the Act and submitted to Council in late May for approval in principle. Council is then required to give public notice that it intends to adopt a budget. It must give 28 days notice of its intention to adopt a proposed budget and make the budget available for inspection at its offices. To assist interested persons to understand the budget and make a submission, Council undertakes a community information process including a media briefings and a display of the proposed budget in the local media and on the City of Greater Bendigo's website. The final step is for Council to adopt the budget after receiving and considering any submissions from interested parties. The budget is required to be adopted and a copy submitted to the Minister by 31 August each year. The key dates for the budget process are summarised below:
Budget process
Timing
1. Officers prepare operating and capital budgets
Jan/Mar
2. Council considers draft budgets at informal briefings
Mar/Apr
3. Proposed budget submitted to Council for approval
30 May
4. Public notice advising of Council’s intention to adopt the budget
2 June
5. Budget available for public inspection and comment
2 to 29 June
7. Submissions period closes (28 days)
29 June
8. Submissions considered by a Committee of Council
4 July
9. Budget and submissions presented to Council for adoption
25 July
10. Copy of adopted budget submitted to the Minister
Proposed Greater Bendigo City Council Budget - 2012/13
1 August
5
1. Linkage to the Council Plan This section describes how the Annual Budget links to the Council Plan within an overall planning framework. This framework guides the Council in identifying community needs and aspirations over the long term (Greater Bendigo 2036), medium term (Council Plan and Strategic Resources Plan) and short term (Annual Actions and Budget) and then holding itself accountable (Annual Report and Audited Statements). 1.1 Strategic Planning Framework The Strategic Resource Plan, included in the Council Plan, summarises the financial and non-financial impacts of the objectives and strategies and determines the sustainability of these objectives and strategies. The Annual Budget is developed taking into account the activities and initiatives which contribute to achieving the Council’s strategic objectives. The diagram below depicts the strategic planning framework of Council. ENGAGEMENT
ACTION
RESOURCE
PLANNING
PLANNING
REPORTING
Community Plans - Greater Bendigo 2036 - Small Town and Neighbourhood Plans
Community Engagement Framework
Long Term Financial and Council Plan
Workforce Plan (Strategic Resource
Annual Report to the Community
Plan)
1. Deliberate Consultation Activities 2. Communications and Media 3. Customer Service Requests
Report to councillors
COGB Strategies
on achievements in
and Plans
strategies
4. Small Towns Strategies
5. Individual Contacts with Staff/Councillors Report to Council Plan Annual Actions
Note: Lighter shades are for "internal only" documents.
Service Plans
Individual Work Plans
Council Budget including Annual Capital Expenditure
Unit Budget
Councillors on progress against Annual Actions and Budget
Progress report to Director
Progress report to Supervisor
Council's Planning and Reporting framework is underpinned by Federal, State and Regional Strategic Plans, Policies and Legislation. 6
Proposed Greater Bendigo City Council Budget - 2012/13
1.2
Our Purpose
Our Vision Greater Bendigo will be the best place to live, work and visit where: Growth and living standards are managed to sustain and enhance quality of life. A regional culture of learning, creativity and innovation allows people to flourish. Its rich natural and cultural heritage is conserved for today and tomorrow. Resilience, local spirit and identity are proudly celebrated. Our Values Council will achieve its vision by working with the community and business displaying leadership in its decision making, operating in an open manner, and basing decisions on sound information. 1.3 Goal Areas and Strategic Objectives The Council delivers activities and initiatives under 33 major service categories or functional areas. Each contributes to the achievement of one of the four Goal Areas and the Strategic Objectives as set out in the Council Plan for the 2009-13 years and shown in the following table. Goal Area
Strategic Objective
1. Built and Natural Environment Built and Natural Environmen t
Value, conserve and enhance the rich built and natural heritage Protect and enhance our existing amenities Achieve high quality outcomes in planning and policy activities Encourage and foster high quality urban design to create environments that support public wellbeing and economic successes Use sustainability principles in the management of assets, public places and facilities Collaborate with the community and demonstrate leadership in responding to the challenges facing the environment Be a leader and role model in climate change adaptation and ecologically sustainable development Foster the ongoing development of an efficient, sustainable and economically enabling transport network
2. Economic Development Built and Natural Environmen t
Conduct a range of advocacy activities to ensure community needs regarding education, industry and employment opportunities are met Encourage and support a vibrant and resilient community which values innovation and creativity Foster approaches which facilitate high employment levels across the community Foster new local developments and partnerships which promote sustainable industry, commerce and exports
3. Community and Culture
Advocate on behalf of vulnerable community members, especially through effective partnerships with relevant agencies Effectively engage and communicate with diverse community members and value their wisdom Increase opportunities for the expression and celebration of cultural diversity Provide support services which foster community resilience, connectedness and social capital Conserve and celebrate the rich cultural heritage Provide equitable access to services which will improve people’s health and wellbeing throughout all life stagespr Encourage and support a vibrant and resilient community which values innovation and creativity
Proposed Greater Bendigo City Council Budget – 2012/13
7
8
Goal Area
Strategic Objective
4. Our People, Our Processes
Demonstrate good governance Deliver responsible financial management and business planning practices to ensure long term sustainability Foster a motivated, responsive, innovative and performance orientated workforce Provide quality customer services that respond to the needs of our whole community Implement strong, clear and transparent corporate governance and strategies and actions Adhere to best practice expectations in project management Conduct responsive Emergency Management coordination and support
Proposed Greater Bendigo City Council Budget - 2012/13
2. Activities, Initiatives and Key Strategic Activities This section provides a description of the activities undertaken by Service Units of the City of Greater Bendigo and the key initiatives funded in the Budget for the 2012/13 year which will be implemented by these Service Units. It also indicates how these initiatives contribute to achieving the strategic objectives specified in the Council Plan. The Strategic Objectives from the Council Plan have been referenced below where relevant. A number of key strategic activities and performance targets and measures are also included. In order to demonstrate full cost of Council services, the City of Greater Bendigo allocates the cost of a number of internal support areas to other service units of Council. These include Finance (general accounting, payroll, accounts payable, accounts receivable), Systems/Management Accounting, Information Management, People and Learning, Customer Service. 2.1 Council and Executive
Activity The Executive Services Unit provides administrative and executive support to Council, the Mayor, the CEO and the Executive Management Team. The Unit also ensures that systems and processes are in place to provide for good governance. Communications, media, community relations and government relations are supported through activities of the unit. The Legal Officer provides legal services in support of governance and to the organisation. Initiatives 1) 2) 3)
Develop Councillors’ Extranet to facilitate induction of the Council following the 2012 Municipal Election Develop and maintain an improved intranet site Effectively manage the VEC Contract and other processes for the conduct of the 2012 Municipal Election
(Expenditure) Revenue Net Cost $'000 (2,395) 218 ($2,177)
Council Plan Reference 4.5 4.2 4.5
2.2 Organisation Support Directorate
Activity The Organisation Support directorate enables, strengthens and enhances our people, culture, systems, processes and finances to ensure sound corporate decision-making, the achievement of the organisation’s strategic objectives and the delivery of high quality services and programs. Initiatives 4)
Manage the Bendigo Library Redevelopment
Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (373) 0 (373)
Council Plan Reference 1.1 9
Library Services
Activity The Goldfields Library Service provides a public library service to four sites throughout the municipality in Bendigo, Kangaroo Flat, Eaglehawk and Heathcote along with the mobile library. With high visitation numbers, the service caters for the cultural, educational and recreational user, as well as research capability through the Regional Archive Centre Reading Room. The service is operated by the North Central Goldfields Library Corporation of which the City of Greater Bendigo is one of the four member municipalities.
(Expenditure) Revenue Net Cost $'000 (2,335) 0 (2,335)
Rates
Activity The Rates Unit provides administrative services in rates and charges generation and collection, maintaining the property database and its link with the mapping software, voters roll preparation, and maintaining the central name and address register.
(Expenditure) Revenue Net Cost $'000 (1,353) 347 (1,006)
Valuations
Activity The Valuations Unit undertakes a general revaluation of the municipality, supplementary valuations, asset and insurance valuations of Council owned property. It also provides valuations and property related advice for Council purposes, handles inquiries and objections to property values from owners and/or ratepayers and undertakes commercial/market orientated rent renewals and negotiations when requested.
Initiatives 5)
10
Commence property revaluations for implementation in 2014
(Expenditure) Revenue Net Cost $'000 (840) 518 (322)
Council Plan Reference 4.5
Proposed Greater Bendigo City Council Budget - 2012/13
Risk Management
Activity The Risk Management Unit is responsible for working with Service Units to develop and support an approach to risk culture and a safe working environment. The Unit ensures that Council's responsibilities are met in accordance with legislations requirements. It provides assistance and advice to all areas of Council's operations and to external organisations and community groups in areas of general risk management, insurance renewals and claims management, Workcover, Municipal Emergency Management Plan and sub plans including Municipal Fire Prevention, Emergency Management, and Occupational Health and Safety programs. Initiatives 6)
Refine Emergency Management Planning processes
(Expenditure) Revenue Net Cost $'000 (1,411) 355 (1,056)
Council Plan Reference 4.7
Finance
Activity The Finance Unit is responsible for the sound and professional stewardship over City of Greater Bendigo finances. The Unit's key functions include adhering to all Legislative and Departmental reporting and financial control requirements and developing financial strategies which provide for sound debt and cash flow management, ensuring that City of Greater Bendigo is a viable organisation able to continue the provision of services into the future.
Initiatives 7) 8)
Review the vehicles policy, including exploring the option of a bike fleet, and reconsider types of vehicles purchased under the policy Implement Procurement Action Plan to ensure best practice purchasing
(Expenditure) Revenue Net Cost $'000 (1,419) Cost allocated across other units
1,257 (162) 66 (96)
Council Plan Reference 4.1 4.1
Systems and Management Accounting
Activity The Systems and Management Accounting Unit is responsible for the preparation of informative, accurate and timely financial management reports. The unit is also responsible for the preparation and adoption of Council's annual budget and the utilisation of key corporate financial, HR-Payroll and land information software systems.
Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (431) Cost allocated across other units
249 (182)
11
Council Plan Reference
Initiatives 9)
Develop and roll out Business Intelligence Software to provide improved information/analysis for Financials, Carbon Accounting, HR-Payroll and other identified KPIs
4.1
Information Management
Activity The Information Management Unit provides information technology support and information services to the City of Greater Bendigo. The Unit is responsible for: records management; corporate servers; computers/laptops and the corporate network which includes over 20 sites; mobile networking; telephone systems; mobile phones; Freedom of Information requests; and Privacy matters. The Unit provides solutions and advice to staff and management. Initiatives 10) Undertake a telecommunications review 11) Implement Web Strategy/Website improvements 12) Upgrade all COGB PCs to Office 2010
(Expenditure) Revenue Net Cost $'000 (3,016) Cost allocated across other units
2,751 (265)
Council Plan Reference 4.2 4.2 4.2
People and Learning
Activity
(Expenditure) Revenue Net Cost $'000 (1,583)
The People and Learning Unit ensures organisational strategies, policies, programs and practices reflect the variety of needs, interests and aspirations our employees.
Cost allocated across other units
Initiatives
Council Plan Reference
13) Implement system and process improvements to ensure the organisation captures and understands its total workforce profile, to inform sound, evidence-based decision making on key workforce changes 14) Provide centralised corporate training 15) Undertake bi-annual Employee Opinion Survey 16) Foster shared leadership and continue to develop people management capability through leadership development and learning programs and initiatives
12
1,401 (182)
4.3 4.3 4.3 4.3
Proposed Greater Bendigo City Council Budget - 2012/13
Contracts and Project Coordination
Activity The Contracts and Project Coordination Unit provides the organisation with centralised tendering and contracts processes. It also provides administration and project management support services for the Council Capital Works Program. Functions include: full tender process management; contract management; assistance with business case development; capital works program development; maintenance and promotion of the Council Project Management Manual and procedures; and supporting and enabling Unit and Project Managers to deliver projects and services in their area of responsibility. Initiatives 17) Review State guidelines and tools to establish mechanisms for inclusion of social procurement and tendering processes 18) Implement improvements to Capital expenditure delivery
(Expenditure) Revenue Net Cost $'000 (748) 0 (748)
Council Plan Reference 4.6 4.6
2.3 Planning and Development Directorate
Activity The Planning and Development directorate ensures a better quality of life for all members of the Greater Bendigo community by fostering sustainable development and enhancing public safety.
(Expenditure) Revenue Net Cost $'000 (377) 0 (377)
Statutory Planning
Activity The Statutory Planning Unit provides a variety of planning services for the Greater Bendigo community. The Unit facilitates quality development including buildings and subdivision, while maintaining and protecting the municipality’s environmental assets and respecting residents/community rights and amenity. Core services include: processing applications for planning permission; customer service and community consultation; providing Council with strategic and statutory advice; Council representation at VCAT and Planning Scheme Amendment panel hearings; providing services to external clients; planning enforcement; and internal liaison with other departments.
Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (2,908) 697 (2,211)
13
Council Plan Reference
Initiatives 19) Assess and process the planning scheme amendment for the Marong Industrial Park and Airport Industrial Park 20) Establish Developer Contribution Plans for Strathfieldsaye and Huntly 21) Implement changes to planning decisions as a result of Victorian Bushfire Royal Commission findings
1.6 1.6 4.7
Building and Property
Activity The Building and Property Services Unit aims to incorporate efficient service delivery and responsiveness in order to manage its statutory building responsibilities. The Unit will continue to work with both business and the community to improve public building safety by encouraging better compliance with building regulations and essential services. In addition, this Unit is responsible for managing CoGB's property portfolio of around 700 buildings and 100 structures, and for the planning and delivery of a major portion of the organisation’s Capital property works budget. The Unit is responsible for issuing and undertaking mandatory inspections on all Council funded or managed projects and provides a high level of direction and technical support for the community. It includes all activities associated with Council's statutory responsibilities under the Building Act and Regulations including Essential Safety Measures, complaint investigation, enforcement, building control administration and reporting. Lodgement and recording of private building permits and Council consents for variation of Building Regulations form an increasing part of this service.
(Expenditure) Revenue Net Cost $'000 (6,854) 1,228 (5,626)
Council Plan Reference
Initiatives 22) Implement water and energy conservation practices at COGB public spaces and buildings 23) Implement a Building Asset Management Plan to provide a strategic direction to manage Council’s significant property portfolio, continue to inspect and record on Conquest property condition information for all buildings 24) Coordinate sale of the strategically situated Council owned properties
1.3 1.11 1.11
Parking and Animal Control
Activity The Parking and Animal Control Unit provides a range of statutory and community services which are primarily delivered under the specific guidelines, policies and direction of Council with regular reporting mechanisms in place. The Unit provides a 24 hour, 7 days per week service and deals with more than 6,500 customer requests each year.
14
(Expenditure) Revenue Net Cost $'000 (3,407) 5,678 2,271
Proposed Greater Bendigo City Council Budget - 2012/13
Initiatives 25) 26) 27) 28) 29) 30)
Review the service agreement with Vic Roads for stock control Implement processes to deal with new “Breeding and Rearing” laws Plan and implement systems and equipment at the new car park Review the Domestic Animal Management Plan Review and retender Animal Control Contract Review and re-tender Animal Pound Contract
Council Plan Reference 1.11 1.11 1.11 1.11 1.11 1.11
Environmental Health and Local Laws
Activity The Environmental Health and Local Laws Unit provides a variety of community safety services for the Greater Bendigo community. Many of those services are delivered in accordance with State Government statute that is delegated to Local Government. Services include: food safety and public health standards in registered premises, domestic wastewater management, nuisance complaint investigations infectious disease control and advice on public health management. Initiatives 31) Review the Domestic Wastewater Management Plan (DWMP) to meet legislative requirements and allocate ongoing resources to guide DWMP implementation and ongoing COGB strategic response to wastewater management 32) Participate in the development and implementation of a National Preventative and Public Health Initiative project 33) Improve the knowledge of people in the hospitality industry in food hygiene and handling by conducting sessions to be delivered to TAFE students undertaking chef apprenticeships and year 11/12 school leavers 34) Review the Itinerant Trade Local Law to ensure that the objective and purpose is the most appropriate method of controlling itinerant trade activity 35) Review local laws governing the Mall and CBD to determine their effectiveness in relation to providing a safe and usable space for all
(Expenditure) Revenue Net Cost $'000 (1,468) 805 (663)
Council Plan Reference 1.4 3.7 3.7 1.11 1.11
Strategy
Activity The Strategy Unit’s integrated planning approach incorporates strategic land use planning, community and social planning, corporate planning, heritage planning, sustainable transport planning, and facilitating the renewal and implementation of the Greater Bendigo +25 Community Plan. The Unit facilitates and coordinates the development of major Council adopted strategies. This requires that staff in the Unit remain abreast of major public policy issues, policy responses, and contemporary practice at the local, national and international level. Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (2,530) 590 (1,940)
15
Council Plan Reference
Initiatives 36) Review planning and design for Bendigo Station Precinct for current and expected growth in demand 37) Work with State Government and universities to implement relevant COGB components of the Regional Strategic Plan including Settlement and Regional Land Use Planning 38) Complete a significant cultural landscape study for the Mandurang, Big Hill, Axe Creek area 39) Preparation of a Structure Plan for Maiden Gully 40) Plan for the Hospital Precinct 41) Undertake the Beehive Development Plan involving the next phase for the Beehive/Bendigo Mining Exchange Project 42) Undertake a review of the existing Open Space Strategy to adequately scope the preparation of a new and current strategy for the management of open space within Greater Bendigo 43) Undertake a Heritage Study for East Bendigo/White Hills to inform preparation of citations and inclusion of properties in the Heritage Overlay 44) Complete Residential Strategy 45) Develop Sustainable Transport Plan in accordance with Council’s decision 46) Analysis of user needs and subsequent building fit-for-purpose across all Eaglehawk CBD community facilities 47) Complete the process and implement the findings of the review of the Greater Bendigo Planning Scheme 48) Review the Commercial Land Strategy and implement in the Planning Scheme 49) Prepare and progress Planning Scheme Amendments to implement the Marong Plan, Eaglehawk Precinct, CBD Parking Policy and Airport 50) Review and Develop the Arts and Cultural Strategy
1.9 1.10 1.5 1.6 1.6 1.6 1.6 1.9 1.10 1.12 3.3 1.10 1.10 1.6 3.4
2.4 Community Wellbeing Directorate
Activity The Community Wellbeing Directorate comprises the functional areas of Aged and Disability Services, Children and Family Services, Community and Cultural Development, Customer Support, Recreation Services and Healthy Communities. This portfolio has a focus on a wide and diverse range of community services and projects, together with strategies that build on Bendigo’s unique qualities and lifestyle.
16
(Expenditure) Revenue Net Cost $'000 (383) (0) (383)
Proposed Greater Bendigo City Council Budget - 2012/13
Customer Service
Activity Due to its key customer contact role in the organisation the Customer Service Unit has a direct link with all other service units within the City of Greater Bendigo. The Unit provides many services aimed at assisting all enquiries to Council’s generic telephone number, emails, requests and other social media forms or over Council's Customer Service Counter at Lyttleton Terrace Bendigo and Heathcote.
Initiatives 51) Continue to implement the Customer Service Strategy to promote a whole of organisation attitude and culture for customer service 52) Develop a Customer Service Integrated Information Management System 53) Implement the findings/recommendations of the Customer Service Charter review process
(Expenditure) Revenue Net Cost $'000 (1,353) Cost allocated across other units
723 (630) 25 (605)
Council Plan Reference 4.4 4.2 4.4
Aged and Disability Services
Activity Services are provided to the frail aged and people with disabilities across the key programs: Home & Community Care (HACC); Veterans Home Care (VHC); and Community Aged Care Packages (CACPs). Initiatives 54) Provide an additional five community care packages as allocated by the Loddon Mallee Consortium 55) Implement the Active Service Model (ASM) principles into service provision and client care plans and provide ASM training for all staff 56) Investigate the feasibility of redeveloping the Golden Square Senior Citizens Centre as a hub for community groups 57) Undertake a review of the Aged & Disability Services Unit (Stage 1) and implement Councils endorsed recommendations (Stage 2) 58) Implement the plan which addresses five special needs groups who are deemed to be most vulnerable 59) Assist high needs clients to become more self reliant and independent in the short term
Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (10,435) 8,797 (1,638) Council Plan Reference 3.11 3.11 3.11 3.11 3.11 3.11
17
Children and Family Services
Activity Children and Family Services is a provider of services for the early childhood target group and their families. The Unit focuses on health promotion, early detection, prevention, care, education and advocacy. It has a strong commitment to community development by promoting and delivering Child Friendly initiatives. Initiatives 60) Review and implement the Community Access and Inclusion Plan 61) Investigate options to assist with assessment of work loads of Maternal and Child Health staff 62) Improve access for families by investigating an alternative booking system for Occasional Child Care 63) Facilitate changes to the Child Care Reform 64) Undertake a feasibility study to assess the need for an Early Learning Centre at Golden Square and Maiden Gully 65) Continue the scholarship program to recruit Maternal and Child Health nurses 66) Undertake a review of Council's role in child care and preschool to ascertain where it should best allocate its resources 67) Complete and implement a Youth Strategy
(Expenditure) Revenue Net Cost $'000 (6,995) 4,932 (2,063)
Council Plan Reference 3.6 3.11 3.11 3.11 3.11 3.11 3.11 3.11
Recreation
Activity The Recreation Unit is focused on delivering outcomes for sport and leisure related community groups across the municipality. Our aim is to provide a liaison point for sport and leisure organisations as well as undertake strategic planning to direct the provision of community sport and leisure opportunities for the future. The Unit is involved in planning, designing, managing, maintaining and creating public access to sport and leisure opportunities for the residents of and visitors to the City of Greater Bendigo.
Council Plan Reference
Initiatives 68) Develop a Golfing Strategy that supports golf clubs in the future strategic directions of golf in Greater Bendigo 69) Complete and implement the Health and Active Lifestyle Framework 70) Review the Skate Park Strategy
18
(Expenditure) Revenue Net Cost $'000 (3,346) 362 (2,984)
3.2 3.10 3.10
Proposed Greater Bendigo City Council Budget - 2012/13
Community and Cultural Development
Activity Community and Cultural Development has an overarching social inclusion and community safety focus. The Unit prepares funding and service agreements, as well as developing and maintaining partnership arrangements to ensure that all community members have opportunities to: engage socially and in education, training and employment; access appropriate community and institutional resources; access appropriate services such as health and transport; access to sufficient material and economic resources including housing; and feel safe in the community including in their homes. Initiatives 71) Facilitate a Farm Business Diversification Expo 72) Support the municipality’s Neighbourhood Houses to develop strategic plans that reflect their community’s needs and aspirations, and support planning for the relocation of Eaglehawk Community House 73) Implement the recommendations contained within the Youth Strategy 74) Facilitate opportunities for young people aged 12-25 to participate in civic engagement activities, increase their social connections and develop new knowledge and skills 75) Develop a pilot Multicultural Ambassadors Program to promote stronger linkages between City of Greater Bendigo and Culturally and Linguistically Diverse communities 76) Implement the recommendations contained within the Positive Ageing Strategy including special initiatives 77) Undertake a review of all Section 86 Committees of Council 78) Implement recommendations arising from review of City of Greater Bendigo grant making activities 79) Support those local communities that have been the focus of the State Government’s Neighbourhood Renewal Program to develop a Community Plan to guide ongoing community engagement and development 80) Support the implementation of an identified sustainable model for the continued provision of art house cinema within Greater Bendigo 81) Work with CBD traders and the community to develop programs and events that maximise activation of the Hargreaves Mall
(Expenditure) Revenue Net Cost $'000 (3,134) 423 (2,711)
Council Plan Reference 2.5 3.3 3.11 3.11
3.5 3.11 4.5 4.5 3.2 3.4 2.5
Healthy Communities
Activity The Healthy Communities Unit, in partnership with Bendigo Community Health Services, is responsible for the implementation of the Prevention Community Model, a comprehensive approach to chronic disease prevention that is being delivered in 14 local government areas across Victoria. This Unit is fully funded
Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (991) 991 (0)
19
(Expenditure) Revenue Net Cost $'000
Activity by the Federal Government. The Unit will focus on: rolling out a range of programs that provide skills and support for achieving better health; supporting prevention partnerships within the Greater Bendigo community; supporting community engagement and participation in determining local solutions; supporting health promoting policies and programs in schools and workplaces; tailoring health messages to local circumstances and needs; and contributing to research and evaluation.
Council Plan Reference
Initiatives 82) Recruit the Healthy Communities workforce and establish the Project Control Model Governance Group 83) Develop and implement Local Partnership Strategy and relevant activities 84) Conduct social marketing activities in local communities on identified issues 85) Establish network of practitioners for healthy workplaces and workers 86) Project manage and facilitate access to local networks and resources in the development phase of the National Partnerships Agreement on Preventative Health integrated health promotion project for Greater Bendigo 2.5
3.7
City Futures
Directorate
Activity The role of the City Futures directorate is to contribute to the economic, cultural and social prosperity of our region by identifying and supporting investment opportunities, employment generation and development of major projects, and in so doing continue to raise Greater Bendigo’s profile as an exceptional place in which to live, work, invest and visit.
(Expenditure) Revenue Net Cost $'000 (373) 0 (373)
Tourism
Activity The Tourism Unit provides leadership to the Greater Bendigo tourism industry. With several hundred tourism related businesses in the Bendigo Loddon region, the Unit works with the industry to brand and co-operatively market the destination regionally, into Melbourne, interstate and internationally. It identifies major infrastructure developments, fosters a high level of professional services across the broad industry sector and delivers high quality visitor services and experiences.
20
(Expenditure) Revenue Net Cost $'000 (3,191) 780 (2,411)
Proposed Greater Bendigo City Council Budget - 2012/13
Initiatives 87) Roll out smart phone application that can be used for visitors to access Greater Bendigo information 88) Support the establishment of new regional Tourism body 89) Increase in marketing for Easter events 90) Improve support and rewards for Tourism Ambassador Volunteers
Council Plan Reference 2.2 2.2 2.2 2.2
Major Events
Activity The Major Events Unit is responsible for increasing the number of major events retained and attracted to Greater Bendigo in the high priority areas of sports, arts and culture, food and wine, music and car club events. Initiatives 91) Continue to attract economically lucrative major sporting, cultural and business events, and carnivals, and an increased sponsorship focus 92) Research and access Government Funding and Corporate Sponsorship
(Expenditure) Revenue Net Cost $'000 (1,401) 237 (1,164) Council Plan Reference 2.2 2.2
Economic Development
Activity The Economic Development Unit has overall responsibility to facilitate and support the economic growth of the Greater Bendigo region and focuses heavily on supporting new, existing enterprises and attraction of new investment in the municipality as a result. Initiatives 93) 94) 95) 96) 97) 98)
Continue to develop the Bendigo Inventor Awards Continue to support the collaboration and promotion of industry and secondary student linkages for work experience and possible work placements Subject to State Government funding, continue to provide support, linkages and education to all sectors regarding employment of skilled migrants to fill shortages across Bendigo and region Prioritise the advancement of the Marong Business Park as an integrated logistics base with allied manufacturing services Prepare planning documentation for the Bendigo Airport Development, including design of the new runway Review the Economic Development Strategy
Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (1,776) 332 (1,444)
Council Plan Reference 2.3 2.4 2.4 2.5 1.1 2.5
21
The Capital, Bendigo Town Hall and Bendigo Exhibition Centre
Activity Services provided by The Capital are broadly divided into two areas: Performing Arts/Special Events which presents a range of performing arts experiences for the Central Victorian Community; and Venue Services for The Capital, Bendigo Town Hall and Bendigo Exhibition Centre. Initiatives 99) Develop and implement a Marketing Plan across all venues 100) Support the design and construction for the new Bendigo Theatre Project
(Expenditure) Revenue Net Cost $'000 (3,614) 2,241 (1,373)
Council Plan Reference 2.6 1.1
Bendigo Art Gallery
Activity Bendigo Art Gallery showcases a diverse range of visual arts and museum based material in the form of temporary exhibitions for the public with a local, national and international focus. Education and public programs are offered within this international standard museum which houses a permanent collection of 19th, 20th and 21st Century art. Initiatives 101) Undertake the Bendigo Art Gallery Expansion Project
(Expenditure) Revenue Net Cost $'000 (2,462) 534 (1,928)
Council Plan Reference 1.1
Special Projects
Activities The Special Projects Unit focuses on projects that involve significant funding from external sources, significant stakeholder engagement and requiring detailed planning, design and delivery. The Unit provides the mechanism for delivery of the City’s identified major projects. Activities include: business planning, funding submission preparation; planning permit preparation; communications; stakeholder engagement; co-ordination of detailed planning; and design and project delivery.
22
(Expenditure) Revenue Net Cost $'000 (381) 0 (381)
Proposed Greater Bendigo City Council Budget - 2012/13
Initiatives 102) Implement the program of works to develop the Edward Street multi storey car park, office and retail complex including development of streetscape design for Edward Street 103) Implement the program of works to develop the extension to the Bendigo Art Gallery 104) Continue the design and development phase for the indoor aquatic facility in Kangaroo Flat 105) Provide project support for Bendigo Showgrounds Project 106) Administer Bendigo Theatre Project 107) Administer Finn Street (Hoffman/Thales) Industrial Subdivision and Access Project 108) Implement the program of works for Bendigo Airport Project 109) Assist with the early phase planning and advocacy for the Cathedral Precinct Project
Council Plan Reference 1.1 1.1 1.1 1.1 1.1 1.1
2.6 Presentation and Assets Directorate
Activity The Presentation and Assets Directorate aims to provide and maintain high quality assets and services that help make Greater Bendigo a great place to live now while planning and delivering new assets and services to support Bendigo’s ongoing growth. Demonstrating environmentally responsible thinking and practices and encouraging this throughout the organisation and community is an important focus for the group.
(Expenditure) Revenue Net Cost $'000 (22,172) 0 (22,172)
Asset Planning and Design
Activity The Asset Planning and Design Unit are responsible for the development and provision of physical infrastructure for the delivery of Council services. This includes the development of capital works projects to provide renewal and new assets to meet the expanding population of Bendigo and increasing community expectations, and the strategic planning of infrastructure through asset management and development of strategic plans for asset groups. The Unit also provides support services across the organisation in areas of asset management and GIS.
Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (3,286) 402 (2,884)
23
Council Plan Reference
Initiatives 110) Completion of Gateway Park Master Plan including community consultation and Council adoption 111) Detailed design for initial works at Lake Weeroona 112) Development of Asset Management Plans for civil infrastructure and open space assets 113) Continue to improve the road network through the East Bendigo industrial area 114) Detailed design and hydraulic investigation for the implementation of the Bendigo Botanic Gardens Master Plan 115) Implement the O’Keefe Rail Trail extension between Axedale and Heathcote 116) Implement drainage works identified in the 5 year drainage plan
1.7 1.6 1.13 1.12 1.6 1.11 1.11
Waste Services
Activity Services provided are collection of garbage from domestic and commercial properties, collection and sorting of kerbside recycling, operation of landfills and transfer stations, street cleaning, and drain and pit cleaning.
(Expenditure) Revenue Net Cost $'000 (14,898) 5,711 (9,187)
Infrastructure Services (Bencon)
Activity Bencon Maintenance includes maintenance and development of sealed and unsealed roads, drains, concrete footpaths, kerb and channel, and bridges. It also includes traffic and pedestrian management, emergency response, supply of labour, plant and traffic management to the Major Events Unit, maintenance of bike tracks.
(Expenditure) Revenue Net Cost $'000 (10,558) 1,641 (8,917)
Bencon Construction undertakes new civil construction projects for Council including roads, drainage, sporting fields and car parks.
Bendigo Livestock Exchange
Activity The Bendigo Livestock Exchange provides for the efficient operation and management of weekly lamb/sheep sales, weekly cattle sales, fortnightly pig/calf sales and special store sales conducted throughout the year.
24
(Expenditure) Revenue Net Cost $'000 (915) 998 83
Proposed Greater Bendigo City Council Budget - 2012/13
Initiatives 117) Conduct an audit and review of the Livestock Exchange operations to determine development and upgrade needs in the next 10 years
Council Plan Reference 2.5
Parks and Natural Reserves
Activity The Parks and Natural Reserves Unit is responsible for the management of a large portfolio of parks, gardens, reserves, sports fields and areas of open space for the City of Greater Bendigo. The diversity of these assets requires a skilled and committed team that are responsible for the implementation of a range of specialist park management, horticultural and environmental techniques and practices. The aim of the Unit is to effectively and sustainably manage these important assets through the efficient use of available resources and the provision of high levels of customer service while meeting both Council and stakeholder needs. Initiatives 118) Increased investment in tree maintenance to address reduction in backlog of customer requests, power line clearance, meet safety standards and increase proactive works on a rolling program 119) Increased resourcing for QEO to ensure that the improved quality achieved through capital upgrade is maintained
(Expenditure) Revenue Net Cost $'000 (7,956) 110 (7,846)
Council Plan Reference 1.7 1.7
Sustainable Environment
Activity The Sustainable Environment Unit's role is to provide a coordinated approach to the development of environmental policies, strategies, programs and processes. The Unit supports the development and growth of community environmental and sustainability groups and provides advice to the community on sustainable living, waste and recycling practices, land management, and adapting to climate variability. It also identifies the implications of Federal and State Government policies on the organisation and the community, and develops strategic directions in waste management.
Proposed Greater Bendigo City Council Budget – 2012/13
(Expenditure) Revenue Net Cost $'000 (1,279) 130 (1,149)
25
Council Plan Reference
Initiatives 120) Facilitate the delivery of Sustainability Accord Project – Creating a Climate-Resilient Southern Loddon Mallee Region 121) Implement actions to reduce corporate emissions (scope 1 and 2) from City of Greater Bendigo operations, works and facilities 122) Complete a Waste and Resource Management Strategy covering all areas of City of Greater Bendigo responsibility 123) Develop an Environment Strategy (Green Plan 3) 124) Undertake review of the Adaptive Stormwater Management Project 125) Prepare for the bulk change over of street lighting to approved energy efficient lights in 2013/14 126) Develop Business Model for QEO Co-generation Plan 127) Undertake Building Audits for following years capital works program 128) Identify and investigate approaches to respond to the potential social impacts of Climate Change and Climate Change Adaptation
26
1.3 1.3 1.4 1.3 1.2 1.2 1.7 1.11 1.3
Proposed Greater Bendigo City Council Budget - 2012/13
2.7 Key Strategic Activities
Key Strategic Activities
Target 2012/2013
Reduction in kilograms of domestic waste per household to landfill
2009/10 <622kg 2010/11 = 642kg
Increased per household volume of recyclable material received at CoGB sorting facility Complete the Sustainable Transport and Land Use Plan
2009/10 >250kg 2010/11 = 258kg
Delivery of the Inventor Awards in partnership with industry and business Percentage of actions completed by target date in Economic Development Strategy
Hold award ceremony 90%
Strategic Indicator Built and Natural Environment 1
2
Waste management effectiveness
Develop a sustainable integrated transport network
Completed by June 2013
Economic Development 3 4
People live, work, invest in and visit Bendigo Economic Development effectiveness
Community and Culture 5
Work collaboratively to promote community safety and healthy living throughout life stages
Performance targets set under The Food Act (1984)
Meet or exceed targets
2010/11 Unique users 13,685 Jul to Dec 2010 Hits 990,070
People and Process 6
Effectiveness of community engagement framework
Increased use of YoBendigo website
7
Provide effective customer service in dealing with the public
Customer Service telephone enquiries: o A service level where 85% of calls are answered within 20 seconds o
70% of telephone calls are resolved at point of contact
o
A call abandonment rate of =<5%
Proposed Greater Bendigo City Council Budget - 2012/13
2009/10 81.89% 2010/11 87.5% 2009/10 67.34% 2010/11 65% 2009/10 3% 2010/11 2.9%
27
Strategic Indicator 8
Financial sustainability
Key Strategic Activities Underlying result % - A positive result indicates a surplus. The larger the percentage, the stronger the result. A negative result indicates a deficit. Liquidity – Measures the ability to pay existing liabilities in the next 12 months. Self financing – Measures the ability to replace assets using cash generated by the entity's operations. Indebtedness – Comparison of noncurrent liabilities (mainly comprised of borrowings) to own-sourced revenue. The higher the percentage, the less able to cover non-current liabilities from the revenues the entity generates itself. Capital replacement – Comparison of the rate of spending on infrastructure with its depreciation. Operational efficiency - improve organisational processes to achieve financial efficiency
Target 2012/2013 Ensure a low or medium risk rating for all financial sustainability measures issued by the Victorian Auditor General
$600,000
2.8 Performance Statement The Key Strategic Activities (KSA) detailed above, their performance measures, targets and results are audited at the end of the year and are included in the Performance Statement as required by Section 132 of the Act. The Annual Report for 2012/2013 will include the audited Performance Statement which is presented to the Minister for Local Government and the local community.
28
Proposed Greater Bendigo City Council Budget - 2012/13
2.9
Reconciliation with Budgeted Operating Result (Net Cost) Expenditure Revenue $’000 $’000
Revenue $’000
Council and Executive
(2,177)
2,395
218
Organisation Support
(6,565)
7,851
1,286
Planning and Development
(8,546)
17,544
8,998
(10,384)
25,914
15,530
(6,974)
13,198
6,224
(52,072)
61,064
8,992
(86,718)
127,966
41,248
Community Wellbeing City Futures Presentation and Assets Total activities and initiatives Other non-attributable Deficit before funding sources
8,759 (77,959)
Rates and charges
79,711
Capital grants
9,645
Contributions to capital works
2,980
Total funding sources
92,336
Surplus for the year
14,377
Proposed Greater Bendigo City Council Budget - 2012/13
29
3. Budget Influences This section sets out the key budget influences arising from the internal and external environment within which the Council operates. 3.1 Snapshot of Greater Bendigo City Council Located within central Victoria, Greater Bendigo has a catchment of over 200,000 people and a population of 105,563 as at 30 June 2011. Population growth within Greater Bendigo was estimated to be 1.5% for the year ended 30 June 2011. The population is projected to be around 150,000 by 2036. The area of the municipality covers 2,999kms2. Greater Bendigo is the second largest city in regional Victoria. Its gross economic output is attributable to major industries and employment sectors including health and community services, retail, manufacturing, education, construction, property and business services, government administration, accommodation and hospitality, and banking and financial services. Being north of the Great Dividing Range, Bendigo enjoys a temperate climate. It has a proud gold mining heritage, boasting some of the finest examples of Victorian architecture and streetscapes in Australia. Bendigo is the home of Australia's longest running annual festival, The Bendigo Easter Festival. The City's cultural attractions include Bendigo Art Gallery, The Capital - Bendigo's Performing Arts Centre, Golden Dragon Museum, Central Deborah Mine, Bendigo Tramways and Bendigo Pottery. The municipality includes two National Parks - Greater Bendigo and Heathcote Greytown, both of which protect large areas of Box-Ironbark forest. 3.2 Emerging Issues with direct local short term impacts The Council Plan has been a significant influence in preparing the 2012/13 budget. In that document the emerging issues are outlined in detail, as well as being summarised below: State and Federal focus on regional Australia. Supporting cultural diversity and tolerant neighbours. Approaches to supporting population behaviour changes. Climate change adaptation. Our City: Planning for growth. Access to high-speed broadband internet services. 3.3 External Influences In addition, external budget influences are: Constrained Federal and State Government fiscal environment. The increasing regulatory environment which requires City of Greater Bendigo to apply resources to meet legislation standards specifically: o The increase in the levy which City of Greater Bendigo is required to pay to the Environment Protection Authority for the disposal of waste to landfill. o The impact of carbon price related to the disposal of waste to landfill. o Expected substantial increase in utility costs. o Changes in emergency management requirements. o The increased environmental standards relating to waste management impacting on the future development of the landfill site. o Changes to Child Care Centre regulations requiring higher staff to child ratios. Selection of Greater Bendigo by the Federal Government to undertake the Healthy Communities Project.
30
Proposed Greater Bendigo City Council Budget - 2012/13
3.4 Internal Influences There are a number of internal influences which have had a significant impact on the preparation of the 2012/13 Budget being: Prioritisation by Council of several large capital works projects that will require increased funding both through rate revenue and loan borrowings. Recognition that the achievement of Strategic Objectives must allow for the organisational capacity to deliver them in an environment of limited financial resources and the availability of appropriately skilled staff. Additional staffing required to meet service requirements. Investment in developing workforce capability. The requirement to address the renewal gap caused by ageing infrastructure by funding capital renewal and upgrades. Introduction of a one per cent efficiency target on operations. Improvement to on-line presence through website development. Commitment to increased service standards regarding tree clearances and grass slashing in rural and urban areas. Increased effort in drainage maintenance and upgrade of drainage assets. Introduction of a higher quality road resheeting program. 3.5 Budget Principles Theme
Principle
1
Best Value
Take account of Best Value Principles as per the Local Government Act: All services must meet quality and cost standards All services must be responsive to the needs of the community Each service must be accessible by those members of the community for whom the service is intended Council must achieve continuous improvement in the provision of services to the community Council must develop a program of consultation with the community in relation to the services it provides and report regularly to the community.
2
Alignment
Council's budget will take account of Council Plan and other strategic plans.
3
Balance
The budget will aim to balance the demand for services and infrastructure with the community's ability to pay. Proposals for service delivery expansion or capital works projects must demonstrate consideration of social, economic and environmental impacts on the community.
4
Capital Works
The Capital Works program will allow for Council's asset renewal needs in line with its Asset Management Plans and Policy.
5
Borrowings
Debt servicing costs to rate revenue will be less than 10%.
Proposed Greater Bendigo City Council Budget - 2012/13
31
Theme
Principle
6
User Fees and Charges
Progress toward achieving full cost recovery for the major nonstatutory fees and charges for services unless justification for another method is provided. Fees and charges (other than the major fees and charges), are to be increased in line with CPI or market levels, unless an alternative business case is approved.
7
Revenue sources
New revenue sources are to be identified where possible.
8
New staffing positions
New employee proposals which are not cost neutral are to be justified through a business case that demonstrates increased service demand or the development of a new service/initiative which is aligned with the Council Plan.
9
Working capital ratio
Aim to maintain a working capital ratio of no less than 120%, which means for every $1 of current liabilities, CoGB has $1.20 of current assets.
10
Service growth
Service expansions or improvements are initially to be funded by more efficient use of resources.
11
Efficiency target
Achieve a 1% reduction in costs related to Contract Payments, Materials and Services across the operating budget. This is to be calculated as Prior Year budget (Local Government Cost Index + 1% business growth) less 1% efficiency target.
12
Community Capacity Work is to be undertaken with the community in building their Building capacity to become self sufficient
Budget Principles 1 to 10 are similar to those utilised in the development of the 2011/12 budget. The additional Budget Principles (11 and 12) are to: ď&#x201A;ˇ ensure the Organisation's continued focus on achieving efficiencies in operations. While currently being an important focus in the operations of the City of Greater Bendigo, it is useful to be explicit in the budget principles regarding this requirement. Council has set a budget principle to achieve one per cent efficiency in materials contracts and services. This target of $600,000 relates to the operating budget. During 2012/13, the organisation will review processes and systems to find savings by increasing efficiency and eliminating waste. Further work is being undertaken to establish a systematic approach to achieving efficiencies, in line with the obligation to deliver Best Value to the community. ď&#x201A;ˇ reduce community reliance on the City of Greater Bendigo by building community capacity. The development of community capacity enables improved outcomes for the community, as people become more self-sufficient. It will also enable resources currently allocated to undertaking community work and funding community projects, to be diverted to areas of new and emerging community needs over time. 3.6 Legislative Requirements Council is required to prepare and adopt an annual budget for each financial year. The budget is required to include certain information about the rates and charges that Council intends to levy as well as a range of other information required by the Local Government (Finance and Reporting) Regulations 2004 (the Regulations) which support the Act. This budget is for the year 1 July 2012 to 30 June 2013 and is prepared in accordance with the Act and Regulations. The budget includes standard statements being a budgeted Income Statement, Balance Sheet, Cash Flow and Capital Works. These statements have been prepared for the year 32
Proposed Greater Bendigo City Council Budget - 2012/13
ended 30 June 2013 in accordance with Accounting Standards and other mandatory professional reporting requirements and in accordance with the Act and Regulations. It also includes detailed information about the rates and charges to be levied, the capital works program to be undertaken and other financial information, which Council requires in order to make an informed decision about the adoption of the budget. The budget includes consideration of a number of long term strategies to assist Council in adopting the Budget in a proper financial management context. These include a Strategic Resource Plan for the years 2012/13 to 2015/16 (Section 8), Rating Strategy (Section 9) and Other Strategies (Section 10) which include borrowings, infrastructure and service delivery.
Proposed Greater Bendigo City Council Budget - 2012/13
33
4. Analysis of Operating Budget 4.1 Budgeted Operating Statement
Ref
Forecast Actual 2011/12 $’000
Budget Variance 2012/13 $’000 $’000
Operating Revenue
4.2
149,310
148,495
(815)
Operating Expenditure
4.3
127,793
134,118
(6,325)
21,517
14,377
(7,140)
3,000 (4,933) (5,230) 14,354
3,000 (9,645) (5,870) 1,862
0 (4,712) (640) (12,492)
Surplus (Deficit) for the year Net loss on disposal/write off of property, plant and equipment Grants – Capital 4.2.8 Granted assets Underlying surplus (deficit)
4.1.1 Underlying surplus ($12.49 million decrease) The underlying result is the net surplus or deficit for the year adjusted for capital grants, contributions of non-monetary assets and other once-off adjustments. It is a measure of financial sustainability as it is not impacted by non-recurring or once-off items of revenues and expenses which can often mask the operating result. The underlying result for the 2012/13 year is a surplus of $1.86 million compared to the 2011/12 forecast surplus of $14.35 million. This decrease is heavily influenced by the timing of the Victorian Grants Commission funding which is based on receipt of five quarterly payments in 2011/2012 which reduces the number of quarters budgeted to be received in 2012/13 to two quarters only. The 2012/13 result also includes considerably higher capital grants for projects such as Bendigo Art Gallery Expansion and Bendigo Library Redevelopment. 4.2 Operating Revenue
Revenue Types
Ref
Rates and charges Statutory fees and fines User charges, fees and fines Reimbursements Contributions - cash Contributions - non monetary assets Government Grants - operating Government Grants - capital Interest revenue Total Operating Revenue
4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 4.2.7 4.2.8 4.2.9
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Forecast Actual 2011/12 $’000 73,800 2,922 21,635 326 4,773 5,230 34,224 4,933 1,467 149,310
Budget Variance 2012/13 $’000 $’000 79,711 3,121 21,025 336 5,755 5,870 21,075 9,645 1,957 148,495
5,911 199 (610) 10 982 640 (13,149) 4,712 490 (815)
Proposed Greater Bendigo City Council Budget - 2012/13
Operating Revenue
$'000
8,000 6,000
Rates & Charges Grants - Cap
4,000 2,000
Stat Fees/Fines
Contributions Interest
0 -2,000
User Fees
-4,000 -6,000 -8,000 -10,000 -12,000 -14,000
Grants - Oper
-16,000
Change 11/12-12/13
Source: Appendix A 4.2.1 Rates and Charges ($5.9 million increase) Rates and charges represent the Council's income from general rates, municipal charges, garbage and recycling charges. The overall rates and charges income reflects an increase of 8.0% or $5.9 million over 2011/2012 forecast. Supplementary rates are expected to contribute $1.3 million to rate revenue in 2012/2013. Section 9 'Rating Strategy' includes a more detailed analysis of the rates and charges to be levied for 2012/13. 4.2.2 Statutory Fees and Fines ($.20 million increase) Statutory fees and fines relate to fees and fines levied in accordance with legislation and include animal registrations, parking fines, Health Act registrations and fines and various planning and building fees. Increases in statutory fees are made in accordance with legislative requirements. Statutory fees and fines are projected to increase by 6.8% or $200,000. The statutory fees and fines applicable for 2012/2013 are available on Councilâ&#x20AC;&#x2122;s web site and can also be inspected at Councilâ&#x20AC;&#x2122;s Customer Service Centres. 4.2.3 User Charges, Fees and Fines ($.61 million decrease) User charges relate mainly to the recovery of service delivery costs through the charging of fees to users of Councilâ&#x20AC;&#x2122;s services. These services include use of leisure, entertainment and other community facilities and the provision of human services such as home care and child care services. In setting the budget, the key principle for determining the level of user charges has been to maintain parity of user charges with service delivery costs where possible, taking into account the economic climate.
Proposed Greater Bendigo City Council Budget - 2012/13
35
User charges, fees and fines are projected to decrease by 2.73% or $610,000 over the 2011/12 forecast. The main areas contributing to the decrease are Bendigo Art Gallery ticketed exhibitions will reduce significantly in 2012/2013 resulting in a $2.74 million decrease in income and a corresponding decrease in shop sales of $403,000. The reduced exhibitions also impact The Capital Box Office $296,000. There is increased income from Children’s Services $247,000, parking (including the Edward St Multi Deck Carpark) $708,000 and Landfill Fees $951,000. The fees and charges applicable for 2012/2013 are available on Council’s web site and can also be inspected at Council’s Customer Service Centres. 4.2.4 Reimbursements ($.01 million increase) Reimbursements include amounts from workcover and insurance claims. 4.2.5 Contributions - cash ($.98 million increase) Contributions include monies paid by developers in accordance with planning permits issued for property development, and contributions made by various parties towards provision of services and Capital/Major Projects. Contributions are projected to increase by $.98 million or 20.57% compared to the 2011/12 forecast. This includes an increase of $1.02 million in contributions towards Capital/Major Projects due to the nature of the projects in the 2012/13 budget, bi-annual contribution from Valuer General towards revaluation information $490,000 and a reduction in development contributions of $405,000 based on anticipated development applications. 4.2.6 Contributions – non monetary assets ($.64 million increase) Non monetary assets include developer constructed assets contributed by developers in accordance with planning permits issued for property development. The increase reflects the trend of developers constructing assets and transferring ownership to City of Greater Bendigo. 4.2.7 Grants – operating ($13.15 million decrease) Operating grants include all monies received from State and Federal sources for the purposes of funding the delivery of Council’s services to ratepayers. Overall, the level of operating grants has decreased by 38.42% or $13.15 million compared to 2011/12 forecast. Significant movements in grant funding are summarised below:
Grant Funding Types Risk Management Major Project Funding Marong Early Learning Centre Major Project Funding Restoration Bendigo Creek Victorian Grants Commission
Forecast Actual 2011/12 $’000 1,605 835 840 18,025
Budget Variance 2012/13 $’000 $’000 0 0 0 7,528
(1,605) (810) (840) (10,497)
The decrease in Risk Management grant funding of $1.61 million relates to one off grants anticipated to be received in 2011/12 towards the recovery from the January/February 2011 storms. A one off grant will be received in 2011/12 towards the development of the Marong Early Learning Centre with Council acting as the auspice body. The decrease in Victorian Grants Commission funding is based on receipt of five quarterly payments in 2011/2012 which reduces the number of quarters budgeted to be received in 2012/13 to 2 quarters only.
36
Proposed Greater Bendigo City Council Budget - 2012/13
4.2.8 Grants - capital ($4.71 million increase) Capital grants include all monies received from State, Federal and community sources for the purposes of funding the Capital Works program. Overall the level of capital grants has increased by 95.5% or $4.71 million compared to the 2011/12 forecast due to specific funding for some large capital works projects in 2012/13 such as $3.78 million for Bendigo Art Gallery Expansion and $2.21 million for Bendigo Library Redevelopment. Section 6 “Analysis of Capital Budget” includes a more detailed analysis of the grants and contributions expected to be received during the 2012/13 year. 4.2.9 Interest Revenue ($.49 million increase) Interest revenue includes interest on investments and rate arrears. Interest is budgeted to increase by 33.4% or $490,000 compared to the 2011/12 forecast. This is mainly attributable to cash flow predictions, particularly in relation to Capital Works funding and corresponding expenditure in 2012/2013. 4.3 Operating Expenditure
Expenditure Types
Ref
Employee benefits Contracts, materials and services Plant and equipment operating costs Borrowing costs Bad debts Net loss on sale/write off of assets Depreciation and amortisation Total Operating Expenditure
4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6
Forecast Actual 2011/12 $’000 44,369 50,197 3,750 438 43 3,000 25,996 127,793
Budget Variance 2012/13 $’000 $’000 47,764 50,324 4,112 1,146 55 3,000 27,717 134,118
(3,395) (127) (362) (708) (12) 0 (1,721) (6,325)
Operating Expenditure $'000
4,000 Emp Benefits 3,000
Deprec'n
2,000
Borrowing Costs
1,000 Cont, Mat & Serv
Plant
Bad debts
0
-1,000 Change 11/12-12/13
Source: Appendix A
Proposed Greater Bendigo City Council Budget - 2012/13
37
4.3.1 Employee Benefits ($3.40 million increase) Employee costs include all labour related expenditure such as wages and salaries and on-costs which includes allowances, leave entitlements, employer superannuation. Employee costs are forecast to increase by 7.65% or $3.40 million compared to 2011/12. This increase relates to the following key factors: Council’s Enterprise Agreement (EA). Reclassification of staff as prescribed by the relevant awards. Impact of full year employment of some staff who took up positions part way through 2011/12. Approved new positions to enable efficient and increased service delivery. Approved new positions fully funded by State Government. The increases in staff numbers are detailed in the following table. A number of positions are supported by external funding or are offset by savings in external resources. Some new positions are project based and therefore short term only.
38
Proposed Greater Bendigo City Council Budget - 2012/13
Department/Unit City Futures Business Initiatives Officer Business Innovation Officer Community Wellbeing Community Care Coordinator Maternal & Child Health Nurse Maternal & Child Health Nurse Community Development Worker Healthy Communities Staff Organisation Support Fire Prevention Driver Web Developer IT Support Officer Rates Administration Officer Planning and Development Strategic Property Analyst Senior Integrated Transport Planner Presentation and Assets Parks Worker – Sportsfields Parks Worker – Horticulture Sustainability Project Officer Road Worker Road Worker Total
EFT
Full Time/Part Time
Cost 2012/13 $’000
External Funding
1.00 1.00 2.00
FT Part Year, temp FT Part Year
65 65 130
Part No
1.00 1.00 1.00 1.00 5.00 9.00
FT Part Year, temp FT, temp FT Part Year FT Part Year FT
58 82 84 53 469 746
No Yes Part No Yes
0.00 1.00 1.00 .30 2.30
Casual, Part Year FT Part Year FT Part Year PT Part Year
14 65 48 14 141
No No No No
1.00 1.00 2.00
FT Part Year, temp FT Part Year, temp
85 73 158
No Yes
1.00 1.00 1.00 1.00 1.00 5.00 20.30
FT Part Year FT Part Year FT Part Year FT Part Year FT Part Year
45 45 53 44 44 231 1,406
No No No No No
Proposed Greater Bendigo City Council Budget - 2012/13
39
4.3.2 Contracts, Materials and Services ($.13 million increase) Contracts, materials and services include the purchases of consumables, payments to contractors for the provision of services and utility costs. Contracts, materials and services are forecast to increase by .26% or $.13 million compared to the 2011/12 forecast. The increase is in part a result of the new cost impact of Carbon Pricing - $614,100 Eaglehawk Landfill emissions and $1.03 million other Landfill emissions, decreased cartage of waste from the Eaglehawk Landfill $1.58 million and an increase in the EPA Landfill Levy of $1.38 million. A number of large exhibitions were staged at The Bendigo Art Gallery during 2011/2012 – level of expenditure not required 2012/13 – reduction $2.2 million. The Strategy Unit will be conducting a number of specific projects, including Integrated Transport Strategy, Hospital Precinct Structure Plan, resulting in increased expenditure of $.58 million. 4.3.3 Plant and Equipment Operating Costs ($0.36 million increase) There is an increase in plant operating costs due to additional cost of diesel fuel $192,000, increased plant hire costs $251,000 offset by decreased expenditure on leasing of plant $78,000. 4.3.4 Borrowing Costs ($0.71 million increase) Borrowing costs relate to interest charged by financial institutions on funds borrowed. The increase in borrowing costs results from the planned additional borrowings. 4.3.5 Bad Debts ($0.01 million increase) There is a minor increase in bad and doubtful debts in line with current trends. All debts are managed under the debt control policy. 4.3.6 Depreciation and Amortisation ($1.72 million increase) Depreciation is an accounting measure which attempts to allocate the value of an asset over its useful life for Council’s property, plant and equipment including infrastructure assets such as roads and drains. The increase of $1.72 million for 2012/13 is due to the revaluation of some asset classes and the full year effect of the 2011/12 capital works program.
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Proposed Greater Bendigo City Council Budget - 2012/13
5. Analysis of Budgeted Cash Position This section analyses the expected cash flows from the operating, investing and financing activities of Council for the 2012/13 year. Budgeting cash flows for Council is a key factor in setting the level of rates and providing a guide to the level of capital expenditure that can be sustained with or without using existing cash reserves. The analysis is based on three main categories of cash flows: Operating activities - Refers to the cash generated or used in the normal service delivery functions of Council. Cash remaining after paying for the provision of services to the community may be available for investment in capital works, or repayment of debt. Investing activities - Refers to cash generated or used in the enhancement or creation of infrastructure and other assets. These activities also include the acquisition and sale of other assets such as vehicles, property and equipment. Financing activities - Refers to cash generated or used in the financing of Council functions and include borrowings from financial institutions and advancing of repayable loans to other organisations. These activities also include repayment of the principal component of loan repayments for the year.
Proposed Greater Bendigo City Council Budget - 2012/13
41
5.1 Budgeted Cash Flow Statement
Ref
Cash flows from operating activities Receipts from customers Payments
Budget 2012/13 $’000
Variance $’000
99,314 (93,781) 5,533
101,435 (101,809) (374)
2,121 (8,028) (5,907)
1,467
1,942
475
39,158 (438) (5,431) 4,767 39,523 45,056
30,720 (1,146) (5,153) 4,950 31,313 30,939
(8,438) (708) 278 183 (8,210) (14,117)
2,197 (54,308) (52,111)
3,707 (51,533) (47,826)
1,510 2,775 4,285
10,700 (2,459) 8,241
11,300 (2,140) 9,160
600 319 919
1,186 33,762
(7,727) 34,948
(8,913) 1,186
34,948
27,221
(7,727)
5.1.1
Interest received Government receipts Interest paid GST on investing activities Net GST refund/(payment) Net cash provided by operating activities Cash flows from investing activities Proceeds from sales of property, plant & equip Payments for property, plant and equipment Net cash used in investing activities
Forecast Actual 2011/12 $’000
5.1.2
Cash flows from financing activities 5.1.3 Proceeds from borrowings - interest bearing Repayment of borrowings - interest bearing Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of the year 5.1.4/5.2 Source: Appendix A 5.1.1 Operating Activities ($14.12 million decrease)
The decrease in cash inflows from operating activities is a combination of increased revenue from rates (refer note 4.2.1) offset by decreased operating grants (refer note 4.2.7) and increased employee costs (refer note 4.3.1). The net cash flows from operating activities does not equal the operating result for the year as the expected revenues and expenses of the Council include non-cash items which have been excluded from the Cash Flow Statement. The budgeted operating result is reconciled to budgeted cash flows available from operating activities as set out in the following table.
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Proposed Greater Bendigo City Council Budget - 2012/13
Surplus (deficit) for the year Depreciation (Loss) gain on write off of assets Net non cash movement in current assets and liabilities Cash flows available from operating activities
Forecast Actual 2011/12 $’000 21,517 25,996 (3,000) 543 45,056
Budget 2012/13 $’000
Variance $’000
14,377 27,717 (3,000) (8,155) 30,939
(7,140) 1,721 0 (8,698) (14,117)
5.1.2 Investing Activities ($4.29 million decrease) The overall decrease in cash used for investing activities is due to decreased payments for property, plant and equipment due to the level of capital expenditure for 2012/13 compared to forecast 2011/12. This is partially offset by a budgeted increase in proceeds from sale of assets. The forecast for capital expenditure 2011/12 includes the completion of a number of projects carried forward from 2010/11. 5.1.3 Financing Activities ($.92 million increase) For 2012/13 the total principal repayment is $2.14 million and other finance charges are $1.15 million. The 2012/13 budget includes new borrowings of $11.30 million. Financing activities also includes payment and repayment of approved loans for private heritage works and community organizations. 5.1.4 Cash and Cash Equivalents at End of the Year ($7.73 million decrease) Overall, total cash and investments are forecast to decrease by $7.73 million to $27.22 million as at 30 June 2013, reflecting Council’s strategy of using excess cash and investments to enhance service delivery and enable the renewal and upgrade of existing infrastructure, and the creation of new infrastructure. 5.2 Restricted and Unrestricted Cash and Investments Cash and cash equivalents held by Council are restricted in part, and not fully available for Council’s operations. The budgeted cash flow statement (refer note 5.1) indicates that Council is estimating at 30 June 2013 it will have cash and investments of $27.22 million, which are restricted as shown in the following table.
Ref Total cash and investments Restricted cash and investments - Statutory & Discretionary reserves - Long service leave - Trust Deposits Unrestricted cash and investments Source: Appendix A
Proposed Greater Bendigo City Council Budget - 2012/13
5.2.1 5.2.2 5.2.3 5.2.4
Forecast Actual 2011/12 $’000 34,948 10,437 5,750 2,355 16,406
Budget 2012/13 $’000
Variance $’000
27,221
(7,727)
17,757 5,980 2,379 1,105
(7,320) (230) (24) (15,301)
43
5.2.1 Statutory and Discretionary Reserves ($17.76 million) Statutory funds must be applied for specified statutory purposes in accordance with various legislative and contractual requirements. While these funds earn interest revenues for Council, the funds are not available for other purposes. Discretionary reserves have been earmarked for specific utilisation in future years. Discretionary reserves include funds for waste disposal facility development, strategic property purchases, Bendigo Theatre Development. In the 2012/13 year $7.32 million is the budgeted increase in Statutory and Discretionary Reserves. 5.2.2 Long Service Leave ($5.98 million) These funds are separately identified to ensure there are sufficient funds to meet Council’s obligations.. Recent changes to the legislation remove the obligation to restrict these funds, however City of Greater Bendigo will continue to report these funds as restricted. 5.2.3 Trust Deposits ($2.38 million) These funds are deposits or retention amounts controlled by Council and recognised as Trust Funds until they are returned or forfeited. 5.2.4 Unrestricted Cash and Investments ($1.11 million) These funds are free of all specific Council commitments and represent funds available to meet daily cash flow requirements and unexpected short term needs. The lower level of unrestricted cash and investment reflects Council’s commitment to utilising existing cash resources, minimisation of rate impacts and borrowing to fund service delivery and Capital Works. The low level is also a result of determining that all discretionary reserves should be cash backed at 30 June – these funds immediately become available for use on 1 July each year.
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Proposed Greater Bendigo City Council Budget - 2012/13
6. Analysis of Capital Budget This section analyses the planned capital expenditure budget for the 2012/13 year and the sources of funding for the capital budget. 6.1 Capital Works Forecast Actual 2011/12 $’000
Budget 2012/13 $’000
Variance $’000
Capital Works Areas
Ref
Capital Works Land Land Improvements Buildings Artworks Plant, Equipment and Other Roads and Bridges Drainage Public Furniture and Fittings Total Capital Works
6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6 6.1.7 6.1.8
1,452 5,027 24,019 0 4,683 13,470 4,036 1,621 54,308
0 1,879 21,497 10 5,049 15,660 5,673 1,765 51,533
(1,452) (3,148) (2,522) 10 366 2,190 1,637 144 (2,775)
Represented by: New assets Asset renewal/upgrade Asset expansion Total capital works
6.1.9 6.1.9 6.1.9
29,077 23,300 1,931 54,308
12,026 32,267 7,240 51,533
(17,051) 8,967 5,309 (2,775)
Budgeted Capital Works 2012/2013
Budgeted Capital Works 2012/2013
by Asset Category
by asset improvement classification
3% 4%
14%
11%
42%
23%
30%
63%
10%
Land
Land Improvements
Asset Renewal/Upgrade
Buildings
Artworks
New Assets
Plant, Equipment & Other
Roads and Bridges
Asset Expansion
Drainage
Public Furniture & Fittings
Source: Appendix A. A more detailed listing of the capital works program is included in Appendix C. Proposed Greater Bendigo City Council Budget - 2012/13
45
6.1.1 Land ($.0 million) For the 2012/13 year, no funds have been allocated towards land purchases. 6.1.2 Land Improvements ($1.88 million) The more significant projects budgeted for 2012/13 include improvements to Sporting Surfaces $590,000, irrigation systems replacement $330,000 and the continuation of the Bendigo Botanic Gardens master plan implementation $315,000. 6.1.3 Buildings ($21.50 million) For the 2012/13 year, $21.50 million will be expended on building construction projects. The more significant projects include the Bendigo Library Redevelopment $6.54 million, Bendigo Art Gallery Expansion $6.5 million, completion of the Multi Deck Car Park and Commercial Facility $2.0 million, improvements to recreation facilities $1.57 million, various property works to council owned facilities $1.59 million, works on various pool facilities $400,000, heritage building works $985,000. 6.1.4 Artworks ($.01 million) For the 2012/13 year, $10,000 has been allocated towards a Sister Cities art installation. 6.1.5 Plant, Equipment and Other ($5.05 million) For the 2012/13 year, $5.05 million will be expended on plant, equipment and other projects. The more significant projects include ongoing cyclical replacement of the plant and vehicle fleet $3.6 million, upgrade and replacement of information technology $772,000 and parking ticket machine replacement $140,000. 6.1.6 Roads and Bridges ($15.66 million) This classification includes local roads, bridges, footpaths, kerb and channel, bike/walking paths and traffic control. For the 2012/13 year, $15.66 million will be expended on road and bridge projects. The more significant projects include various road construction, traffic management and streetscape works $11.45 million, footpath and kerb and channel works $1.42 million and bike/walking paths $1.26 million. 6.1.7 Drainage ($5.67 million) For the 2012/13 year, $5.67 million will be expended on drainage projects. The need for an increased commitment to drainage works has been identified from Council's 5 Year Capital Works Plan based on priority. 6.1.8 Public Furniture and Fittings ($1.77 million) For the 2012/13 year, $1.77 million will be expended on replacement of additional public furniture and fittings throughout the municipality, including seating, lighting, shade structures, bus shelters, playground equipment.
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Proposed Greater Bendigo City Council Budget - 2012/13
6.1.9 New Assets ($12 million), Asset Renewal/Upgrade ($32 million), Expansion ($7.2 million) A distinction is made between expenditure on new assets, expenditure on asset renewal/upgrade and expansion. Expenditure on asset renewal/upgrade is expenditure on an existing asset, which improves the service potential or the life of the asset. Expenditure on new assets does not have any element of expansion of existing assets but will result in an additional burden for future operation, maintenance and capital renewal. The major projects included in the above categories, which constitute expenditure on new assets, are components of the Bendigo Library Redevelopment $1.54 million, the completion of the Multi Deck Car Park and Commercial Facility $2.0 million, construction of Mitchell Street (Pall Mall to Myers Street) $800,000 and the construction of a road to service East Bendigo Industrial area $890,000.
Proposed Greater Bendigo City Council Budget - 2012/13
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6.2 Funding Sources Forecast Actual 2011/12 $’000
Budget 2012/13 $’000
Variance $’000
Sources of funding
Ref
External Grants - Capital Contributions Proceeds on sale of assets
6.2.1 6.2.2 6.2.3
4,933 2,067 656 7,656
9,645 2,980 902 13,527
4,712 913 246 5,871
Internal Reserve Investments Loan funds Working Capital/Operations
6.2.4 6.2.5 6.2.6
7,139 10,700 28,813 46,652 54,308
560 11,300 26,146 38,006 51,533
(6,579) 600 (2,667) (18,646) (2,775)
Total Funding Sources
Budgeted Capital Works 2012/2013 Funding Sources
19%
Grants - Capital 2% 6% 50%
1%
Proceeds on sale of assets Contributions Reserve Investments Loan Funds Working Capital/Operations
22%
Source: Appendix A 6.2.1 Grants - Capital ($9.65 million) Capital grants and contributions include all monies received from State and Federal sources for the purposes of funding the capital works program. Significant grants are budgeted to be received for Bendigo Art Gallery Expansion $3.78 million, Bendigo Library Redevelopment $2.21 million, Roads to Recovery projects $1.4 million and Local Road Construction and Bike/Walking Path projects $1.49 million.
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Proposed Greater Bendigo City Council Budget - 2012/13
6.2.2 Contributions ($2.98 million) Contributions are received from various sources to support the delivery of specific projects. Included in the budget for 2012/13 is $760,000 towards the Thales (Finn St) Industrial Road Project, $510,000 contribution from the North Central Goldfields Library Corporation towards the Bendigo Library Redevelopment, $450,000 from Bendigo Art Gallery Board towards the Art Gallery expansion, $500,000 contribution towards the fitout of the office accommodation Edward St Multi Deck Carpark, $449,000 from property owners and developers towards road and kerb/channel projects, $104,000 towards recreation and sporting facilities. 6.2.3 Proceeds on Sale of Assets ($.90 million) Proceeds from the sale of assets include plant and motor vehicle sales in accordance with Council's fleet renewal program of $902,000. A further $2.81 million will be generated from the sale of Council owned properties. These proceeds will be transferred to the Land and Buildings Reserve. 6.2.4 Reserve Investments ($.56 million) The Council has significant cash reserves. During the budget preparation process, Council determines how much of these reserves will be used to fund its annual capital works program. The reserves include monies set aside for specific purposes such as Waste Management Facilities, Car Parking, Building Redevelopment, and Drainage Works. For 2012/13, $560,000 will be used to fund part of the capital works program including Drainage Works $400,000 and $160,000 towards purchase of Mobile Garbage Bins. 6.2.5 Loan Funds ($11.3 million) New borrowings of $11.3 million will be used to complete the construction of the Multi Deck Car Park and Commercial Facility and to assist in the overall delivery of the capital works program including significant projects such as the Bendigo Art Gallery Expansion and the Bendigo Library Redevelopment. 6.2.6 Working Capital/Operations ($26.15 million) In addition to reserve investments, City of Greater Bendigo also has uncommitted cash and investments which represent working capital and funds preserved from the previous financial year. Cash is also generated from operating activities. It is forecast that $26.15 million will be available from operations and previously held cash investments to fund the 2012/13 capital works program. Refer to section 5. â&#x20AC;&#x2122;Analysis of Budgeted Cash Positionâ&#x20AC;&#x2122; for more information on funds from operations.
Proposed Greater Bendigo City Council Budget - 2012/13
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7. Analysis of Budgeted Financial Position This section analyses the movement in assets, liabilities and equity between 2011/12 and 2012/13. 7.1 Budgeted Balance Sheet
Ref
Current assets Cash and cash equivalents Trade and other receivables Inventory Assets held for resale Other assets Total current assets
7.1.1
Non-current assets Investments in Associates Trade and other receivables Forestry plantations Property, infrastructure, plant and equip Intangibles Total non-current assets Total assets
7.1.1
Current liabilities Trade and other payables Provisions Interest-bearing loans and borrowings Trust funds Total current liabilities
7.1.2
Non-current liabilities Provisions Interest-bearing loans and borrowings Total non-current liabilities Total liabilities Net assets
7.1.2
Equity Accumulated surplus Asset revaluation reserve Other reserves Total equity Source: Appendix A
50
7.1.3
Forecast Actual 2011/12 $’000
Budget 2012/13 $’000
Variance $’000
34,948 8,749 188 1,650 1,219 46,754
27,221 11,240 190 1,650 1,249 41,550
(7,727) 2,491 2 0 30 (5,204)
5,099 469 651 1,130,096 498 1,136,813 1,183,567
5,252 473 673 1,174,181 498 1,181,077 1,222,627
153 4 22 44,085 0 44,264 39,060
12,749 10,656 2,667 2,355 28,427
10,970 10,869 1,909 2,379 26,127
1,779 (213) 758 (24) 2,300
4,861 14,463 19,324 47,751 1,135,816
4,958 24,381 29,339 55,466 1,167,161
(97) (9,918) (10,015) (7,715) 31,345
538,416 586,963 10,437 1,135,816
544,480 604,924 17,757 1,167,161
6,064 17,961 7,320 31,345
7.1.3
Proposed Greater Bendigo City Council Budget - 2012/13
7.1.1 Current Assets ($5.20 million decrease) and Non-Current Assets ($44.26 million increase) Cash and cash equivalents include cash and investments such as cash held in the bank and in petty cash and the value of investments held in deposits or other highly liquid investments with short term maturities of three months or less. These balances are projected to decrease by $7.70 million between the forecast 2011/12 and budget 2012/13 year mainly due to five quarters Victorian Grants Commission funds being received in 2011/12 which reduces the number of quarters to be received in 2012/13 to two quarters only. Other items impacting this figure are one off grants in 2011/12 towards the recovery from the January/February 2011 floods. These reduced grants are offset to some extent by funding for specific capital projects including $3.78 million for Bendigo Art Gallery expansion and $2.21 million for Bendigo Library Redevelopment. Trade and other receivables are monies owed to Council by ratepayers and others. Short term debtors continue to be managed under tight financial controls. Long term debtors (non current) include loans to community organisations. Investments in Associates reflect Council's investment in the North Central Goldfields Regional Library Service. Property, infrastructure, plant and equipment is the largest component of Council’s worth and represents the value of all land, land improvements, buildings, artworks, plant and equipment, roads, bridges, drainage, and public furniture and fittings, which has been built up by the Council over many years. The increase in this balance is attributable to the net result of the capital works program ($51.53 million), gifted developer assets ($5.77 million), depreciation of assets ($27.72 million), the sale and disposal of property, plant and equipment ($3.0 million) and an increase in valuation of assets as a result of the revaluation cycle ($17.96 million). 7.1.2 Current Liabilities ($2.30 million decrease) Non Current Liabilities ($10.02 million increase) Trade and other payables are those to whom Council owes money as at 30 June. These liabilities are budgeted to decrease slightly due to timing of capital works payments. Provisions include accrued long service leave and annual leave owing to employees. These employee entitlements are expected to increase slightly after factoring in an increase for Enterprise Bargaining outcomes. Interest-bearing loans and borrowings are the balance of borrowings held by the Council. The Council is budgeting for new borrowings of $11.3 million and to repay loan principal of $2.14 million over the year. 7.1.3 Total Equity ($31.34 million increase) Total equity always equals net assets and is made up of the following components: Asset revaluation reserve which represents the difference between the previously recorded value of assets and their budgeted valuations as at 30 June 2013. Other reserves that are funds that Council separately identify as being set aside to meet a specific purpose in the future and to which there is no existing liability. These amounts are transferred from the Accumulated Surplus of the Council to be separately disclosed. Accumulated surplus which is the value of all net assets less reserves that have accumulated over time. During the year a net amount of $7.32 million will be transferred to other reserves from accumulated surplus. This net amount consists of $610,000 budgeted to be transferred from other
Proposed Greater Bendigo City Council Budget - 2012/13
51
reserves and $7.93 million budgeted to be transferred to other reserves. This is a transfer between equity balances only and does not impact on the total balance of equity. 7.2
Key Assumptions
In preparing the Budgeted Balance Sheet for the year ending 30 June 2013 it was necessary to make a number of assumptions about assets, liabilities and equity balances. The key assumptions are as follows: A total of 98.3% of total rates and charges raised will be collected in the 2012/13 year. Trade creditors to be based on total capital and operating expenditure. Payment cycle is 30 days. Other debtors and creditors to remain consistent with 2011/12 levels. Employee entitlements to be increased by the Enterprise Agreement outcome offset by the impact of continued active management of leave entitlements of staff. Repayment of loan principal to be $2.14 million. Total capital expenditure to be $51.53 million. A total of $7.32 million to be transferred to reserves from accumulated surplus, representing the accumulation of reserve funds via Developer Levies, Grants, Proceeds from Sale of Properties and Garbage Charges, offset by a minor transfer from reserves of $610,000 towards the 2012/13 capital works program.
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Proposed Greater Bendigo City Council Budget - 2012/13
8. Strategic Resource Plan and Key Financial Indicators This section considers the long term financial projections of the Council. The Act requires a Strategic Resource Plan to be prepared covering both financial and non-financial resources, and including key financial indicators for at least the next four financial years to support the Council Plan. 8.1 Plan Development Council has prepared a Strategic Resource Plan (SRP) for the four years 2012/13 to 2015/16 as part of its ongoing financial planning to assist in adopting a budget within a longer term framework. The SRP takes the strategic objectives and strategies as specified in the Council Plan and expresses them in financial terms for the next four years. The key objective, which underlines the development of the Plan, is financial sustainability in the medium to long term, while still achieving Council’s strategic objectives as specified in the Council Plan. The key financial objectives, which underpin the Long Term Financial Plan, are: Achieving current or enhanced levels of service. Maintenance of cash reserves to enable the City of Greater Bendigo to meet its cash outlays as they fall due. Maintain a capital expenditure program of at least $40 million per annum. Return surplus operating results annually in order to maintain capacity to finance current and future Council strategies and meet capital investment and renewal requirements. In preparing the SRP, the Council has also been mindful of the need to comply with the following Principles of Sound Financial Management as contained in the Act: Prudently manage financial risks relating to debt, assets and liabilities. Provide reasonable stability in the level of rate burden. Consider the financial effects of Council decisions on future generations. Provide full, accurate and timely disclosure of financial information. The Plan is updated annually through a rigorous process of consultation with Council service providers followed by a detailed sensitivity analysis to achieve the key financial objectives. 8.2 Financial Resources The following table summarises the key financial results for the next four years as set out in the SRP for years 2012/13 to 2015/16. Appendix A includes a more detailed analysis of the financial resources to be used over the four year period.
Operating result Underlying operating result Cash and investments Cash flows from operations Capital works
Strategic Resource Plan Forecast Budget Projections Actual 2011/12 2012/13 2013/14 2014/15 2015/16 $’000 $’000 $’000 $’000 $’000 21,517 14,377 16,210 16,117 24,918 14,354 1,862 8,292 9,130 9,871 34,948 27,221 31,576 39,312 40,070 45,056 30,939 41,204 42,373 50,933 54,308 51,533 43,692 41,074 55,217
Proposed Greater Bendigo City Council Budget - 2012/13
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The following graph shows the general financial indicators over the four year period. 60,000 50,000 40,000 30,000 20,000 10,000 0 F2011/12
B2012/13
SRP2013/14
Operating Result Cash and Investments Cash flows from operations
SRP2014/15
SRP2015/16
Capital Works Underlying Result
The key outcomes of the SRP are as follows: Financial sustainability (Section 5) - Cash and investments are forecast to increase over the four year period from $27.22 million to $40.07 million. Cash held at 30th June can appear high, but is simply reflective of the timing of our cash inflows and outflows. Rating strategy (Section 9) – Rates increases are forecast to remain at 6.0% over the three years 2013/14 to 2015/16. Service delivery strategy (Section 10) – Service levels have been increased in some areas throughout the four year period. Despite this, operating surpluses are forecast in all years as a result of continued operating and capital grant revenue being received to fund both the annual operating and capital works programs. The underlying result is a measure of financial sustainability and is an important measure as once-off items can often mask the operating result. Borrowing strategy (Section 10) – Borrowings are forecast to increase from $26.29 million to $37.11 million over the four year period. This includes new borrowings of $11.3 million in 2012/13, $6.50 million in 2013/14, $6.50 million in 2014/15 and $5.5 million in 2015/16. These proposed borrowings are in line with Council’s borrowing strategy and reflect the identified requirements to meet forward capital works budgets. Infrastructure strategy (Section 10) - Capital expenditure over the four year period will total $192 million at an average of $47.88 million.
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Proposed Greater Bendigo City Council Budget - 2012/13
8.3 Key Financial Indicators The following table highlights Council’s current and projected performance across a range of key financial indicators. These provide a useful analysis of Council’s financial position and performance and should be used in the context of the organisation’s objectives.
Financial performance Underlying result/Underlying rev Rate revenue/Underlying revenue Debt servicing/Total revenue Grants/Total revenue Fees & charges/Total revenue Financial position Indebtedness/Rate revenue Underlying result/Total assets Current assets/Current liabilities Capital expenditure Capital works - New assets - Asset renewal/upgrade - Asset expansion Capital works/Rate revenue Asset renewal/Total depreciation
Notes
Indicator
Strategic Resource Plan Projections Projections 2013/14 2014/15 2015/16
Forecast Actual 2011/12
Budget 2012/13
1 2
(10.3%) 53.0% 0.03% 26.2% 16.4%
(1.4%) 59.9% 0.08% 20.7% 16.3%
5.7% 58.5% 0.15% 20.5% 16.0%
5.8% 58.3% 0.16% 19.4% 15.9%
6.0% 60.3% 0.15% 22.4% 15.0%
3 4
23.2% 1.3% 164%
33.0% 0.2% 159%
35.7% 0.7% 172%
37.5% 0.7% 187%
37.4% 0.7% 186%
5
$54,308 $29,077 $23,300 $1,931 73.59% 89.63%
$51,533 $12,026 $32,267 $7,240 64.65% 116.42%
$43,692 $13,999 $27,742 $1,951 50.93% 100%
$41,074 $10,278 $28,574 $2,222 44.53% 100%
$55,217 $22,959 $29,716 $2,542 55.68% 100%
Notes to indicators 1. Underlying result - Improvement in financial performance expected over the period, through utilisation of Council's cash reserves and/or additional borrowings. 2. Rate revenue/Underlying revenue - Reflects extent of reliance on rate revenues to fund all of Council's on-going services. Trend indicates Council reliance on rate revenue will remain at a similar level over the reported period. 3. Indebtedness/Rate revenue - Trend is reflective of Council's borrowing strategy and includes some new borrowings in the future offset by continued repayment of borrowings. 4. Current Assets/Current Liabilities – Working capital is forecast to decrease in 2012/13 year due to a run down in cash reserves to fund the capital program. The trend in latter years is to gradually increase. 5. Asset renewal/Total depreciation - This percentage indicates the extent of Council's renewals against its depreciation charge (an indication of the decline in value of its existing capital assets). A percentage greater than 100 indicates Council is maintaining its existing assets, while a percentage less than 100 means its assets are deteriorating faster than they are being renewed and future capital expenditure will be required to renew assets.
Proposed Greater Bendigo City Council Budget - 2012/13
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8.4 Non-Financial Resources In addition to the financial resources to be consumed over the planning period, Council will also utilise non-financial resources, in particular human resources. The following table summarises the human resources for the next four years. Strategic Resource Plan Forecast Projections Actual Budget Projections 2011/12 2012/13 2013/14 2014/15 2014/15 $’000 $’000 $’000 $’000 $’000 44,539 47,764 51,697 55,865 60,370
Indicator
Employee costs 8.5 Staffing Resources
The current breakdown of staff numbers for the City of Greater Bendigo is outlined below:
Full Time
No of Male Employees 252
No of Female Employees 169
Total No of Employees 421
Total Employee % 41.85
Part Time
57
296
353
35.09
Casual
46
131
177
17.59
Temp Full Time
12
17
29
2.88
Temp Part Time
5
21
26
2.58
372
634
1006
100%
Total
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Proposed Greater Bendigo City Council Budget - 2012/13
9. Rating Strategy This section considers the Councilâ&#x20AC;&#x2122;s rating strategy including strategy development and assumptions underlying the current year rate increase and rating structure. 9.1 Strategy Development In developing the Strategic Resource Plan (referred to in Section 8), rates and charges were identified as an important source of revenue, accounting for approximately 54% of the total revenue received by Council annually. A key component of the strategy is to ensure the surplus on operations when added to depreciation, funds an acceptable level of capital works without the need for excessive borrowing. The Council Plan assumes a rate increase of 5.50% in 2012/13, then an ongoing rate increase of 6.00% over the years 2013/14, 2014/15 and 2015/16 plus additional rate revenue from growth. This enables the City of Greater Bendigo to embark upon a significant level of new capital works each year and a manageable level of borrowings. The City of Greater Bendigo also actively reviews fees and charges each year to minimise pressure on rates to ensure users are paying a reasonable price for services. The City of Greater Bendigo also pursues all available opportunities for grants and subsidies. In determining rate increases each year it is necessary to balance the importance of rate revenue as a funding source with community sensitivity to increases, including the impact of a bi-annual general revaluation, which alters property valuations and subsequently rates for some properties in the municipality. A revaluation of properties will be used for the first time in the 2012/13 year. To ensure that deliberations about future rate increases have been made on an informed basis, comparisons of historical rate increases for the City of Greater Bendigo have been made. The following table shows the rate increases over five years and the average rate per capita.
Year 2008/09 2009/10 2010/11 2011/12 2012/13 Average increase
Rate Increase 5.00% 4.00% 4.50% 5.90% 5.50% 4.98%
Average Rate Per Capita $578 $614 $653 $699 $730 $ 655
9.2 Current Year Rate Increase It is predicted that the 2012/13 operating position will be impacted by growth in services, construction costs and general cost increases. It will therefore be necessary in the future to carefully monitor the revenue growth from rates and charges while containing costs in order to maintain capital expenditure at a reasonable level and a sound financial position. The contribution from working capital/operations towards capital investments for the 2012/13 year is adequate with the balance of funds required coming from reserves and loan borrowings. In order to achieve the objectives of maintaining service levels and a substantial capital expenditure program, total income from general rates and the municipal charge will increase by 5.50%, while the garbage charge will increase by 11.40% and the recycling charge will increase by 2.60% in 2012/13 raising a total of $79.7 million, including $1.3 million generated from supplementary rates.
Proposed Greater Bendigo City Council Budget - 2012/13
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9.3 Rating Structure City of Greater Bendigo has established a rating structure which is comprised of four key elements. These are: Property values, which reflect capacity to pay: A municipal charge being a uniform charge on all properties to cover some of the administrative costs of the City of Greater Bendigo. A user pays component to reflect usage of waste collection services provided by City of Greater Bendigo. A user pays component to reflect usage of recycle waste collection services provided by the City of Greater Bendigo. The City of Greater Bendigo makes a further distinction within the property value component of rates based on the purpose for which the property is used, that is, whether the property is used for residential, business or farm purposes or is vacant land. These distinctions are based on the concept that business should pay a fair and equitable contribution to rates taking into account the benefits those businesses derive from the local community. Rates and charges in respect of farming properties should take account of the restricted access to many City of Greater Bendigo services. Striking a proper balance between these elements provides equity in the distribution of the rate burden across ratepayers. The City of Greater Bendigo levies rates on the Capital Improved Valuation (CIV) of properties being the value of the land plus all improvements on the basis that CIV provides an equitable distribution of rates across the municipality. The rating structure comprises four broad differential rates (residential, business, farm, and vacant land) and a rate concession for recreational land. The business properties are divided into three differential rates based on geographic locations. These rates are structured in accordance with the requirements of Section 161, Differential Rates, of the Act. Under the Cultural and Recreational Lands Act 1963, provision is made for a Council to grant a rating concession to any recreational lands which meet the test of being rateable land under the Act. Since 1994 the City of Greater Bendigo has levied a Municipal Charge. This charge is a contribution towards the administrative costs of the Council. The Municipal Charge has been reduced by a further 25% of the 2010/11 level of $129.60 to $64.80 in 2012/13. This decision has been taken to provide rate relief to residential ratepayers of lower valued properties. In respect to residential properties, this rate relief will affect approximately 19,000 ratepayers. The City of Greater Bendigo also has a kerb side waste collection charge and a kerb side recyclable waste charge as provided for under the Act. Increases in these charges are 11.40% for waste collection and 2.60% for recycle collection and reflect recovery of associated costs. There is also a waste collection charge for commercial properties in selected areas of the municipality. These charges are based on the levels of service received by users of the service and range from $240.90 to $1,686.30 (GST inclusive). An additional recycle bin is available at an annual charge of $45.00. The following table summarises the rates to be raised for the 2012/13 year. A more detailed analysis of the rates to be raised is contained in Appendix B “Statutory Disclosures”.
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Proposed Greater Bendigo City Council Budget - 2012/13
Rate type Residential rates Business rates A Business rates B Business rates C Farm rates Vacant land - residential & rural residential Municipal charge Garbage Charge – 120/140 Litre per bin per property Garbage Charge - 240 Litre per bin per property Recyclable Garbage per bin per property Additional Recyclable Garbage per bin per property Garbage - (Specified Commercial Areas) Excl GST. One day per week service - per bin Two day per week service - per bin Three day per week service - per bin Five day per week service - per bin Seven day per week service - per bin
How applied Cents/$ CIV Cents/$ CIV Cents/$ CIV Cents/$ CIV Cents/$ CIV Cents/$ CIV $/ property $/ property $/ property $/ property $/ property
2010/11
2011/12
0.360% 0.6919% 0.6648% 0.7256% 0.3214% 0.43285% $97.20 $115.00 $196.50 $57.00 $45.00
0.353% 0.660% 0.640% 0.690% 0.308% 0.433% $64.80 $128.00 $219.00 $58.50 $45.00
$196.50 $393.00 $589.50 $982.50 $1,375.50
$219.00 $438.00 $657.00 $1,095.00 $1,533.00
9.4 General Revaluation of Properties During the 2011/12 year, a revaluation of all properties within the municipality was carried out as at 1 July 2012 for the 2012/13 and 2013/14 rating years.
Proposed Greater Bendigo City Council Budget - 2012/13
59
10. Other Strategies This section sets out the strategies that have been developed and incorporated into the Strategic Resource Plan including borrowings, infrastructure and service delivery. 10.1 Borrowings In developing the Strategic Resource Plan (SRP), (see Section 8), borrowings were identified as an important funding source for capital works programs. In the past, Council has used a mix of borrowings and cash and investment reserves to fund the capital works program. For the 2012/13 year, Council has decided on new borrowings of $11.3 million to partly fund the capital works program. After making loan repayments of $2.45 million, total borrowings will increase to $17.13 million at 30 June 2013. It is likely that in future years further borrowings will be required to fund new infrastructure initiatives. The following table sets out future proposed borrowings, based on the forecast financial position of Council as at 30 June 2013. Year 2011/12 2012/13 2013/14 2014/15 2015/16
New Borrowings $’000 10,700 11,300 6,500 6,500 5,500
Principal Paid $’000 2,459 2,140 2,157 2,564 2,959
Interest Paid $’000 438 1,146 2,303 2,611 2,828
Balance 30 June $’000 17,130 26,290 30,633 34,569 37,110
10.2 Infrastructure The key aspects of the Capital Works program development are as follows: Identification of capital projects through the preparation of asset condition and management programs. Prioritisation of capital projects within classes on the basis of evaluation criteria. Business Case template for officers to document capital project submissions. A key objective of the Capital Works Program is to maintain or renew Council’s existing assets at desired condition levels. If sufficient funds are not allocated to asset renewal through the Capital Works Program then Council’s investment in those assets will reduce, along with the capacity to deliver services to the community. In preparing the Capital Works program for the 2012/13 year, the following influences have had a significant impact: Council's commitment to construct projects of a very substantial nature including the completion of the Multi Deck Car Park and Commercial Facility, the Bendigo Library Redevelopment, Bendigo Art Gallery Expansion. Growing demand for sporting facilities in growth areas of the municipality. Availability of Federal funding for upgrade of roads and to undertake infrastructure projects. Continued commitment to address community concerns regarding the standard of drainage infrastructure. More rigorous assessment process for capital works projects has identified the need for increased effort in planning prior to construction.
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Proposed Greater Bendigo City Council Budget - 2012/13
10.3 Service Delivery The key objectives in Councilâ&#x20AC;&#x2122;s Strategic Resource Plan (referred to in Section 8) which directly impact the future service delivery strategy are to maintain and enhance existing service levels. The Rating Strategy (see Section 9) also refers to modest rate increases into the future. A number of internal and external influences have been identified through discussions with Council which will have a significant impact on the scope and level of services to be provided over the next four years. As well as the general influences, there are also a number of specific influences which relate directly to service areas or activities. The most significant changes in these areas are summarised below. Grass Slashing and Parks and Sports Ground Maintenance Increased commitment to grass slashing to address fire risks and increased resources required to maintain new and upgraded passive and active recreation facilities EPA Levy The State Government proposes to increase the EPA landfill levy. This cost will be recovered through increased waste services fees. Carbon Pricing Landfill operations in particular are impacted heavily by the introduction of Carbon Pricing. Child Care State Government regulations have a significant impact on the delivery of Child Care services. Art Gallery Expansion works on the Art Gallery have negated the opportunity to stage significant exhibitions in 2012/13.
Proposed Greater Bendigo City Council Budget - 2012/13
61
Appendices The following appendices include voluntary and statutory disclosures of information which provide support for the analysis contained in sections 1 to 10 of this report. This information has not been included in the main body of the budget report in the interests of clarity and conciseness. Council has decided that while the budget report needs to focus on the important elements of the budget and provide appropriate analysis, the detail upon which the annual budget is based should be provided in the interests of open and transparent local government. The contents of the appendices are summarised below: Appendix A B C D E
62
Nature of information Budgeted standard statements Statutory disclosures Capital works program Maps Glossary
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX A
Appendix A - Budgeted Standard Statements This appendix presents information in regard to the Budgeted Standard Statements. The budget information for the years 2012/13 to 2015/16 has been extracted from the Strategic Resource Plan. The appendix includes the following budgeted information: Budgeted Standard Income Statement Budgeted Standard Balance Sheet Budgeted Standard Cash Flow Statement Budgeted Standard Capital Works Statement Standard Statement Assumptions
Standard Statement Assumptions
Forecast 2013/14
Forecast 2014/15
Forecast 2015/16
CPI
3.19%
3.19%
3.19%
Rates increases Supplementary rates ($’000’s)
6.0% 1,184
6.0% 1,184
6.0% 1,267
Grants Commission increases Recurrent grants % increase Capital Grants ($’000’s)
2.75% 2.75% 4,990
2.75% 2.75% 4,000
2.75% 2.75% 12,000
% increase in User/Statutory Fees & Fines
4.19%
4.19%
4.19%
3.9% 4.2%
3.9% 4.2%
3.9% 4.2%
6,500 7.30% 5.50%
6,500 7.30% 5.50%
5,500 7.50% 5.50%
43,692
41,074
55,217
Employee costs per EA % Employee Growth/Increment New borrowings ($’000’s) Interest on borrowings Interest on investments Capital Expenditure ($’000’s)
Proposed Greater Bendigo City Council Budget - 2012/13
63
APPENDIX A
Budgeted Standard Income Statement - for the four years ending 30 June 2016
Forecast Actual 2011/12 $’000
Budget 2012/13 $’000
2013/14 $’000
2014/15 $’000
2015/16 $’000
73,800 2,922 21,635 326 4,773 5,230 34,224 4,933 1,467 149,310
79,711 3,121 21,025 336 5,755 5,870 21,075 9,645 1,957 148,495
85,786 3,251 21,905 347 5,969 5,928 27,391 4,990 2,048 157,615
92,233 3,387 22,823 358 6,175 5,987 28,144 4,000 2,161 165,268
99,160 3,530 23,780 370 6,388 6,047 28,918 12,000 2,280 182,473
44,369 50,197 3,750 438 43
47,764 50,324 4,112 1,146 55
51,383 52,514 4,416 2,303 47
55,541 54,799 4,575 2,611 51
60,036 57,182 4,739 2,828 54
3,000 25,996 127,793
3,000 27,717 134,118
3,000 27,742 141,405
3,000 28,574 149,151
3,000 29,716 157,555
21,517
14,377
16,210
16,117
24,918
250
(28)
-
-
-
500
500
500
500
500
Net asset revaluation increments
18,000
27,013
27,564
27,946
28,274
Comprehensive Result
40,267
41,862
44,274
44,563
53,692
Revenues Rates and charges Statutory fees and fines User charges, fees and fines Reimbursements Contributions – cash Contributions – non monetary Government grants - operating Government grants - capital Interest on investments Total revenues Expenses Employee costs Contract payments, materials and services Plant and equipment operating expenses Borrowing costs Bad Debts Net Loss on disposal of property, plant, infrastructure and assets held for resale Depreciation and amortisation Total expenses Operating Result Other Comprehensive Income Fair value adjustments for financial assets held at fair value Share of other comprehensive income of Associates accounted for by the equity method
64
Strategic Resource Plan Projections
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX A
Budgeted Standard Balance Sheet - for the four years ending 30 June 2016
Current assets Cash and cash equivalents Trade and other receivables Inventory Assets held for resale Other assets Total current assets Non-current assets Investments in Associates Trade and other receivables Forestry plantations Property, infrastructure, plant and equipment Intangibles Total non-current assets Total assets
Forecast Actual 2011/12 $’000
Strategic Resource Plan Projections
Budget 2012/13 $’000
2013/14 $’000
2014/15 $’000
2015/16 $’000
34,948 8,749 188 1,650 1,219 46,754
27,221 11,240 190 1,650 1,249 41,550
31,576 12,136 192 1,650 1,280 46,834
39,312 12,768 194 1,312 53,586
40,070 14,085 196 1,345 55,696
5,099 5,252 469 473 651 673 1,130,096 1,174,181 498 498 1,136,813 1,181,077 1,183,567 1,222,627
5,409 478 697 1,210,706 498 1,217,788 1,264,622
5,571 483 721 1,244,585 498 1,251,858 1,305,444
5,738 488 745 1,291,093 498 1,298,562 1,354,258
Current liabilities Trade and other payables Provisions Interest-bearing loans and borrowings Trust funds Total current liabilities
12,749 10,656 2,667 2,355 28,427
10,970 10,869 1,909 2,379 26,127
11,423 11,086 2,316 2,402 27,227
12,099 11,308 2,752 2,426 28,585
12,839 11,534 3,177 2,450 30,000
Non-current liabilities Provisions Interest-bearing loans and borrowings Total non-current liabilities Total liabilities
4,861 14,463 19,324 47,751
4,958 24,381 29,339 55,466
5,057 28,317 33,374 60,601
5,158 31,817 36,975 65,560
5,261 33,933 39,194 69,194
Net assets
1,135,816 1,167,161
1,204,021
1,239,884
1,285,064
Equity Accumulated surplus Asset revaluation reserve Other reserves Total equity
538,416 544,480 586,963 604,924 10,437 17,757 1,135,816 1,167,161
565,551 623,609 14,861 1,204,021
582,923 607,708 642,855 662,617 14,106 14,739 1,239,884 1,285,064
Proposed Greater Bendigo City Council Budget – 2012/13
65
APPENDIX A
Budgeted Standard Cash Flow Statement - for the four years ending 30 June 2016
Forecast Actual 2011/12 $’000 Cash flows from operating activities Receipts from customers Payments to suppliers Net cash inflow (outflow) from customers/suppliers Interest received Government receipts Interest paid GST on investing activities Net GST refund/(payment) Net cash inflow (outflow) from operating activities Cash flows from investing activities Proceeds from sale of property, plant and equipment Payments for property, infrastructure, plant and equipment Net cash inflow (outflow) from investing activities Cash flows from financing activities Proceeds from borrowings – interest bearing liabilities Repayment of borrowings – interest bearing liabilities Net cash inflow (outflow) from financing activities Net increase (decrease) in cash & cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
66
Strategic Resource Plan Projections
Budget 2012/13 $’000
2013/14 $’000
2014/15 $’000
2015/16 $’000
99,314 101,435 (93,781) (101,809)
114,005 (105,437)
121,322 (111,506)
129,118 (118,267)
5,533
(374)
8,568
9,816
10,851
1,467 39,158 (438) (5,431) 4,767
1,942 30,720 (1,146) (5,153) 4,950
2,048 32,381 (2,303) (4,369) 4,879
2,161 32,144 (2,611) (4,107) 4,970
2,280 40,918 (2,828) (5,218) 4,930
45,056
30,939
41,204
42,373
50,933
2,197
3,707
2,500
2,500
2,500
(54,308)
(51,533)
(43,692)
(41,074)
(55,217)
(52,111)
(47,826)
(41,192)
(38,574)
(52,717)
10,700
11,300
6,500
6,500
5,500
(2,459)
(2,140)
(2,157)
(2,563)
(2,958)
8,241
9,160
4,343
3,937
2,542
1,186 33,762 34,948
(7,727) 34,948 27,221
4,355 27,221 31,576
7,736 31,576 39,312
758 39,312 40,070
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX A
Budgeted Standard Capital Works Statement - for the four years ending 30 June 2016
Forecast Actual 2011/12 $’000
Budget 2012/13 $’000
2013/14 $’000
2014/15 $’000
2015/16 $’000
Capital works areas Land Land improvements Buildings Artworks Plant, equipment and other Roads and bridges Drainage Public furniture and fittings Total capital works
1,452 5,027 24,019 4,683 13,470 4,036 1,621 54,308
1,879 21,497 10 5,049 15,660 5,673 1,765 51,533
842 5,728 15,896 84 5,559 10,950 3,790 843 43,692
927 5,303 5,634 93 6,117 16,976 4,634 1,390 41,074
980 6,667 4,902 98 6,471 29,726 4,902 1,471 55,217
Represented by: New Assets Renewal Expansion/Upgrade Total capital works
29,077 23,300 1,931 54,308
12,026 32,267 7,240 51,533
13,999 27,742 1,951 43,692
10,278 28,574 2,222 41,074
22,959 29,716 2,542 55,217
Proposed Greater Bendigo City Council Budget – 2012/13
Strategic Resource Plan Projections
67
APPENDIX B
Appendix B - Statutory Disclosures This appendix presents information which the Act and the Regulations require to be disclosed in the Council’s annual budget. The appendix includes the following budgeted information: Borrowings Rates and charges Differential rates
68
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX B
Statutory disclosures 1. Borrowings 2011/12 $’000 10,700 2,459
New borrowings (other than refinancing) Debt redemption
2012/13 $’000 11,300 2,140
2. Rates and Charges 2.1 The proposed rate in the dollar for each type of rate to be levied. Type of Property A general rate for rateable residential properties A general rate for rateable business properties Class A A general rate for rateable business properties Class B A general rate for rateable business properties Class C A general rate for rateable farm properties A general rate for rateable vacant land properties – residential & rural residential Rate concession for rateable recreational properties Class 1 Rate concession for rateable recreational properties Class 2 Rate concession for rateable recreational properties Class 3 Rate concession for rateable recreational properties Class 4 Rate concession for rateable recreational properties Class 5
2011/12 cents/$CIV 0.360% 0.6919% 0.6648% 0.7256% 0.3214%
2012/13 cents/$CIV 0.353% 0.660% 0.640% 0.690% 0.308%
0.43285% 0.180% 0.090% 0.0360% $221.00 $322.00
0.433% 0.1765% 0.08825% 0.0353% $258.00 $359.00
2.2 The estimated amount to be raised by each type of rate to be levied. Type of Property Residential Business Farm Vacant – residential & rural residential Recreational Rating agreements Total rates to be raised
Proposed Greater Bendigo City Council Budget – 2012/13
2011/12 $ 38,636,543 14,519,247 1,915,099 2,552,006 36,142 34,978 57,694,015
2012/13 $ 44,061,279 14,641,734 2,119,631 2,978,474 38,472 38,121 63,877,711
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APPENDIX B
2.3 The proposed percentage change in the rate in the dollar for each type of rate to be levied compared to that of the previous financial year.
Type of Property Residential Business Class A Business Class B Business Class C Farm Rate Vacant Land â&#x20AC;&#x201C; rural & rural residential Cultural and Recreation Class 1 Cultural and Recreation Class 2 Cultural and Recreation Class 3 Cultural and Recreation Class 4 Cultural and Recreation Class 5
2011/12 Change % 10.077 7.055 8.203 6.659 7.889 13.728 10.769 10.769 10.769 31.35 21.739
2012/13 Change % (1.95) (4.61) (3.73) (4.906) (4.17) .0003 (1.95) (1.95) (1.95) 16.74 11.49
Notes: 2012/13 - A general revaluation was applied in 2012/13 which had the affect of reducing the rate in the dollar for the majority of property types against the 2011/12 year. 2012/13 - The 25% reduction in the Municipal Charge has an impact on the % change on all property types in that the redistribution of some income from the Municipal Charge to the General Rate creates a higher than normal % adjustment to the rate in the dollar.
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Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX B
2.4 The number of assessments for each type of rate to be levied compared to the previous year.
Type of Property Residential Business Class A Business Class B Business Class C Farm Rate Vacant Land – rural & rural residential Cultural and Recreation Class 1 Cultural and Recreation Class 2 Cultural and Recreation Class 3 Cultural and Recreation Class 4 Cultural and Recreation Class 5 Total number of assessments
2011/12 No 42,218 2,090 269 1,121 1,276 4,386 6 10 7 18 19
2012/13 No 43,077 2,108 271 1,114 1,256 4,361 6 10 7 18 20
51,420
52,248
2.5 The basis of valuation to be used is the Capital Improved Value (CIV). 2.6 The estimated total value of land in respect of which each type of rate is to be levied, compared with the previous year. Type of Property Residential Business Class A Business Class B Business Class C Farm Rate Vacant Land – rural & rural residential Cultural and Recreation Land Total
2011/12 $’000 10,732,373 1,113,696 76,175 869,236 595,862 589,582 47,324 14,024,248
2012/13 $’000 12,481,949 1,217,158 80,236 883,332 688,192 687,869 48,775 16,087,511
2.7 The proposed Municipal Charge is $64.80, a reduction of 50% over the 2010/11 year charge of $129.60, and a reduction of 33.33% over the 2011/12 year charge of $97.20.
Proposed Greater Bendigo City Council Budget – 2012/13
71
APPENDIX B
2.8 The proposed unit amount to be levied for each type of charge under Section 162 of the Act for both rateable and non-rateable properties.
Type of Charge Kerbside garbage collection – 120/140Litre bin Kerbside garbage collection - 240Litre bin Kerbside recycling collection Recycling bin collection in excess of one bin (per additional bin) Garbage Collection and Disposal - Business Properties as specified in Council’s Garbage and Recycling Charge policy Kerbside collection - Commercial properties - 240Litre bin* Kerbside collection - Commercial properties - 120/140Litre bin* Garbage Collection and Disposal in Specific Business Areas as specified in Council’s Garbage and Recycling Charge policy Kerbside collection - 1 day per week* Kerbside collection - 2 days per week* Kerbside collection - 3 days per week* Kerbside collection - 5 days per week* Kerbside collection - 7 days per week* (* amounts are GST inclusive)
72
Per Bin 2011/12 $ 115.00 196.50 57.00 45.00
Per Bin 2012/13 $ 128.00 219.00 58.50 45.00
216.15 126.50
240.90 140.80
216.15 432.30 648.45 1,080.75 1,513.05
240.90 481.80 722.70 1,204.50 1,686.30
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX B
2.9
The estimated amounts to be raised for each type of charge to be levied compared to the previous year. Type of Charge
Municipal Kerbside garbage collection – 120/140 Litre bin Kerbside garbage collection - 240 Litre bin Kerbside recycling collection Garbage Collection and Disposal - Business Properties as specified in Council’s Garbage and Recycling Charge policy (excl of GST) Kerbside collection - Commercial properties - 240 Litre bin Kerbside collection - Commercial properties – 120/140 Litre bin Garbage Collection and Disposal in Specific Business Areas as specified in Council’s Garbage and Recycling Charge policy (excl of GST) Kerbside collection - 1 day per week Kerbside collection - 2 days per week Kerbside collection - 3 days per week Kerbside collection - 5 days per week Kerbside collection - 7 days per week
2011/12 $ 4,973,821 2,723,085 3,676,710 2,470,674
2012/13 $ 3,369,730 3,151,744 4,074,057 2,601,504
571,815
708,969
53,935
67,443
176,261 36,156 145,017 107,093 71,526
218,015 52,998 169,835 122,859 91,060
2011/12 $ 72,700,108 1,100,000 73,800,108
2012/13 $ 78,375,816 1,335,108 79,710,924
2.8.1 The estimated total amount to be raised by rates and charges:
Rates and charges Supplementary rates Total 2.9
There are no known significant changes which may affect the estimated amounts to be raised by rates and charges. However, the total amount to be raised by rates and charges may be affected by: The making of supplementary valuations The variation of returned levels of value (e.g. valuation appeals) Changes in use of land such that rateable land becomes non-rateable land and vice versa; and Changes in use of land such that residential land becomes business land and vice versa.
Proposed Greater Bendigo City Council Budget – 2012/13
73
APPENDIX B
3. Differential Rates 3.1 Rates to be levied The rate and amount of rates payable in relation to land in each category of differential are: A general rate of 0.353% (0.353 cents in the dollar of CIV) for all rateable residential properties. A general rate of 0.660% (0.660 cents in the dollar of CIV) for all rateable business A properties. A general rate of 0.640% (0.640 cents in the dollar of CIV) for all rateable business B properties. A general rate of 0.690% (0.690 cents in the dollar of CIV) for all rateable business C properties. A general rate of 0.308% (0.308 cents in the dollar of CIV) for all rateable farm properties. A general rate of 0.433% (0.433 cents in the dollar of CIV) for all rateable non commercial zoned vacant land properties. A rating concession of 0.1765% (0.1765 cents in the dollar of CIV) for all rateable Class 1 Cultural and Recreational properties. A rating concession of 0.08825% (0.08825 cents in the dollar of CIV) for all rateable Class 2 Cultural and Recreational properties. A rating concession of 0.0353% (0.0353 cents in the dollar of CIV) for all rateable Class 3 Cultural and Recreational properties. A rating concession of $258.00 for all rateable Class 4 Cultural and Recreational properties. A rating concession of $359.00 for all rateable Class 5 Cultural and Recreational properties. Each differential rate (excepting class 4 and class 5 cultural and recreation properties) will be determined by multiplying the Capital Improved Value of each rateable land (categorised by the characteristics described below) by the relevant percentages indicated above. City of Greater Bendigo considers that each differential rate will contribute to the equitable and efficient carrying out of City of Greater Bendigo functions. Details of the objectives of each differential rate, the types of classes of land, which are subject to each differential rate and the uses of each differential rate, are set out below. 3.2 Rebates In accordance with the provisions of Section 169 of the Local Government Act, City of Greater Bendigo grants a rebate to each owner (or, where applicable, occupier) of rateable land described below, in the amount authorised by any Agreement binding Council for: Lords Raceway, 646-650 McIvor Highway, Junortoun, Victoria Department of Human Services Aged Person’s Units located at: 20 Mackenzie Street West, Golden Square, Victoria 15 Burrowes Street, Golden Square, Victoria 2 Jeffrey Street, Elmore, Victoria 3 Carpenter Street, Kangaroo Flat, Victoria 18 Camp Street, Kangaroo Flat, Victoria 159 Retreat Road, Spring Gully, Victoria 32 Castle Street, North Bendigo, Victoria 17-19 Kirkwood Road, Eaglehawk, Victoria 2 Virginia Street, Eaglehawk, Victoria 51 Bannister Street, North Bendigo, Victoria
74
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX B
3.3 Residential Land Residential Land is any land, which is not: Business Land A; Business Land B; Business Land C; Farm Land or Vacant Land; and which is: Used primarily for residential purposes; or Less than 1500m2 in area and used primarily for indoor, cultural or recreational purposes by a body which applies its profits to promote its objects and otherwise prohibits the payment of a dividend or amount to its members. The objective of this differential rate is to ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of City of Greater Bendigo, including (but not limited to) the: Construction and maintenance of infrastructure assets. Development and provision of health and community services. Provision of general support services. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2012/13 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.4 Business Land A Business Land A is any land, which is not: Residential Land; Business Land B; Business Land C; Farm Land or Vacant Land; and which is used primarily for: Sale of goods or services; or Other commercial purposes; or Industrial purposes; or Vacant unoccupied land zoned or intended to be used for commercial or industrial purposes; and located in the area depicted in Appendix D Annexure D-1 (excluding the Bendigo CBD as depicted in Appendix D-2). The objective of this differential rate is to ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of City of Greater Bendigo, including (but not limited to) the: Construction and maintenance of infrastructure assets. Development and provision of health and community services. Provision of general support services Proposed Greater Bendigo City Council Budget – 2012/13
75
APPENDIX B
The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2012/13 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.5 Business Land B Business Land B is any land, which is not: Residential Land; Business Land A; Business Land C; Farm Land or Vacant Land; and which is used primarily for: Sale of goods or services; or Other commercial purposes; or Industrial purposes; or Vacant unoccupied land zoned or intended to be used for commercial or industrial purposes; and not located within the area depicted in Appendix D-1 and D-2. The objective of this differential rate is to ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of City of Greater Bendigo, including (but not limited to) the: Construction and maintenance of infrastructure assets. Development and provision of health and community services. Provision of general support services The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2012/13 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme.
76
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX B
Business Land C Business Land C is any land, which is not: Residential Land; Business Land A; Business Land B; Farm Land or Vacant Land; and which is used primarily for: Sale of goods or services; or Other commercial purposes; or Industrial purposes; or Vacant unoccupied land zoned or intended to be used for commercial or industrial purposes; and is located within the area depicted in Appendix D-2. The objective of this differential rate is to ensure that all rateable land makes an equitable financial contribution to the cost of: Construction and maintenance of infrastructure assets. Development and provision of health and community services. Provision of general support services. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2012/13 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.6 Farm Land Farm Land is any land, which is not: Residential Land; Business Land A; Business Land B; Business Land C or Vacant Land; and which is: "farm land" within the meaning of Section 2(1) of the Valuation of Land Act 1960. The objective of this differential rate is to ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of City of Greater Bendigo, including (but not limited to) the: Construction and maintenance of infrastructure assets. Development and provision of health and community services. Provision of general support services. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each
Proposed Greater Bendigo City Council Budget – 2012/13
77
APPENDIX B
rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2012/13 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme. 3.8 Vacant Land Vacant Land is any land, which is not: Residential Land; Business Land A; Business Land B; Business Land C or Farm Land; and which is: land on which no dwelling is erected. The objective of this differential rate is to ensure that all rateable land makes an equitable financial contribution to the cost of: ď&#x201A;ˇ Construction and maintenance of infrastructure assets. ď&#x201A;ˇ Development and provision of health and community services. ď&#x201A;ˇ Provision of general support services. The differential rate will be used to fund some of those items of expenditure described in the budget adopted by City of Greater Bendigo. The types and classes of rateable land within this differential rate are those having the relevant characteristics described above. The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the relevant Planning Scheme. All buildings which are now constructed on the land or which are constructed prior to the expiry of the 2012/13 Financial Year. The geographic location of the land within this differential rate is wherever located within the municipal district. The use of the land within this differential rate, in the case of improved land, is any use permitted under the relevant Planning Scheme.
78
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX C
Appendix C - Capital Works Program This appendix presents a listing of the capital works projects that will be undertaken for the 2011/12 year. The capital works projects are grouped by Strategic Goal Areas.
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79
APPENDIX C
Capital Works Program For the year ending 30 June 2013
Capital Works Area
Resp Dir
Council Plan
Externally Funded
Action
Internal Reserve
Internally Funded
Project
Funding
Total Cost
Ref
$’000
$’000
$’000
$’000
CF
1.1
0
0
34
34
P&A
1.11
0
0
840
840
OS
1.1
2,720
0
3,816
6,536
Bike/Walking Paths
P&A
1.7
0
0
172
172
O'Keefe Rail Trail Extension
P&A
1.7
500
0
400
900
High Street Bike Underpass
P&A
1.7
190
0
0
190
Boyd Lane Sedgwick Bridge Works
P&A
1.11
0
0
100
100
Bridge Renewal Program (see list following)
P&A
1.11
0
0
45
45
Developer Related Drainage
P&A
1.11
0
250
0
250
Drainage Program (see list following)
P&A
1.11
0
150
5,273
5,423
Energy Efficient installations in COGB facilities
P&D
1.2
0
0
150
150
Street Trees Purchase and Planting
P&A
0
50
200
250
CAPITAL WORKS PROJECTS ARE CATEGORISED UNDER GOAL AREAS IDENTIFIED IN THE COUNCIL PLAN BUILT AND NATURAL ENVIRONMENT Bendigo Airport Bendigo Airport - Plant and Equipment Purchase Bendigo Creek Restoration Bendigo Creek Bendigo Library Bendigo Library Redevelopment Bike/Walking Paths
Bridges
Drainage
Environmental
Footpaths Footpath Works (see list following)
P&A
1.13
0
0
1,093
1,093
Restoration of Old Council Chamber Furniture
P&D
1.9
0
0
62
62
Urban Aerial Photography
P&A
0
0
30
30
Furniture & Equipment
Kerb & Channel Kerb & Channel (see list following)
P&A
1.11
39
0
284
323
Bendigo Botanic Gardens Master Plan Implementation
P&A
1.6
0
0
350
350
Irrigation Replacement Program
P&A
1.7
0
0
330
330
Parks and Reserves Renewal Program
P&A
1.7
0
0
110
110
Ticket Machine Purchase
P&D
1.11
0
0
140
140
Playgrounds Implementation of Playspace Strategy - Renewal/Upgrade Only
CW
1.7
0
0
260
260
Indoor Aquatic Centre Design and Planning
CW
1.7
0
0
120
120
Peter Krenz Leisure Centre Spa Replacement
CW
1.7
0
0
450
450
Swimming Pool Maintenance Program
CW
1.7
0
0
400
400
Open Space
Parking Control
Pools
80
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX C
Capital Works Area
Resp Dir
Council Plan
Externally
Internal
Funded
Reserve
Action
Internally Funded
Funding
Project Total Cost
Ref
$’000
$’000
$’000
$’000
Property Building Works - Recreation
P&D
1.11
0
0
900
900
Buildings - Other
P&D
1.11
1
0
1,276
1,277
Bendigo Trust
P&D
0
0
450
450
Heritage Building Works
P&D
1.9
60
0
925
985
Bus Shelters
P&A
1.7
15
0
40
55
Installation & Replacement of Park Furniture
P&A
1.7
0
0
160
160
Public Lighting
P&A
1.7
0
0
200
200
Street Furniture Program
P&A
1.7
0
0
50
50
Hargreaves Mall Screens
CW
0
0
200
200
Public Furniture
Public toilets Axedale Public Toilet
P&D
1.7
0
0
130
130
Huntly/Spring Gully Pony Club Public Toilets
CW
1.7
0
0
195
195
Public Toilets
P&D
1.7
0
0
110
110
Safe Transport Space
P&D
1.7
325
0
319
644
Barrack Reserve Stadium & Change Room Detailed Design
CW
1.7
0
0
150
150
Bendigo South East College Lighting of Netball Courts
CW
1.7
92
0
128
220
Bendigo Tennis Pavilion and Courts Detailed Design
CW
1.7
50
0
100
150
Heathcote Skate Park
CW
1.7
0
0
100
100
Huntly Netball & Tennis Court Lighting
CW
1.7
82
0
48
130
Kennington Oval Storage Facility, Scoreboard & Power
CW
1.7
0
0
100
100
Strathfieldsaye Recreation Reserve Landscaping Stage 1
CW
1.7
0
0
115
115
Lighting Sporting Facilities
CW
1.7
0
0
100
100
Raywood Netball Court Installation of Lighting
CW
1.7
38
0
17
55
Long Gully Recreation Reserve Construction of Car Park
CW
1.7
0
0
120
120
Recreation Ancillary Structures Improvements
P&A
1.7
0
0
100
100
Sporting Surface Upgrades - Hard Surfaces
CW
1.7
0
0
594
594
Sporting Surface Upgrades – Soft Surfaces
P&A
1.7
0
0
110
110
White Hills Swimming Pool Storage Facilities
CW
0
0
20
20
Recreation Facilities
Roads Mitchell St Pall Mall to Myers St Road Renewals - Sealed Road Pavements (see list following)
P&A
1.13
800
0
0
800
P&A
1.13
0
0
4,406
4,406
Road Renewals - Sealed Road Seals (see list following)
P&A
1.13
0
0
2,950
2,950
Road Renewals - Unsealed Roads (see list following)
P&A
1.13
0
0
2,000
2,000
Roads to Recovery Income
P&A
1.13
1,350
0
(1,350)
0
Rowena St East Bendigo, Rohs Rd to Murphy St
P&A
1.13
410
0
480
890
CW
1.13
0
0
90
90
P&A
1.11
0
0
40
40
Traffic Management Traffic Management - Marong Early Learning Centre Signage Civic Signage
Proposed Greater Bendigo City Council Budget – 2012/13
81
APPENDIX C
Capital Works Area
Resp Dir
Council Plan
Externally Funded
Action Townscapes/Streetscapes Renewal of landscaped medians, roundabouts and traffic islands
Internal Reserve
Internally Funded
Project
Funding
Total Cost
Ref
$’000
$’000
$’000
$’000
P&A
1.13
0
0
200
200
P&A
1.4
Waste Management Projects Mobile Garbage Bin Purchase Total Built and Natural Environment
90
160
0
250
6,762
610
30,232
37,604
ECONOMIC DEVELOPMENT Airport Bendigo Airport Taxiway Works
CF
1.1
0
0
70
70
CF
1.1
4,225
0
2,275
6,500
Bendigo Theatre Project
CF
1.1
2,100
0
0
0
Bendigo Theatre Project – Funding (tfr to reserve)
CF
1.1
(2,100)
0
0
0
Bendigo Theatre Project Council Contribution
CF
1.1
0
0
500
500
CF
1.1
500
0
1,500
2,000
CF
1.13
1,022
0
360
1,382
P&A
2.5
0
0
250
250
CF
1.7
Art Gallery Bendigo Art Gallery Expansion - Construction Bendigo Theatre
Carpark Development Edward St Car Park Office Complex Industrial Development Thales Industrial Road Project (Finn St) Livestock Exchange Livestock Exchange Improvements Property Bendigo Showgrounds Upgrade Project Total Economic Development
0
0
175
175
5,747
0
5,130
10,877
COMMUNITY AND CULTURE Child Services Buildings - Child Services
CW
3.11
97
0
107
204
P&D
1.7
0
0
105
105
CW
3.4
Property Eaglehawk Mechanics Institute Alterations Tourism/Promotion Sister Cities Art Installation Total Community and Culture
1
0
9
10
98
0
221
319
0
0
30
30
0
0
5
5
0
0
50
50
PEOPLE AND PROCESSES Capital Theatre Replacement of Lighting Instruments
CF
Child Services Purpose Built Vaccine Refrigerator
CW
3.11
Furniture & Equipment Furniture and Equipment Replacement
OS
Miscellaneous Additional Software Licenses
OS
4.2
0
0
12
12
ECM Licenses
OS
4.2
0
0
40
40
Information Management Asset Renewal
OS
4.2
0
0
570
570
Microsoft 2010 Licences
OS
4.2
0
0
100
100
Information Management
82
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX C
Capital Works Area
Resp Dir
Council Plan
Externally
Internal
Funded
Reserve
Action Ref
Internally Funded
Funding
Project Total Cost
$’000
$’000
$’000
$’000
Plant & Equipment Plant Replacement (General Fleet) Plant Replacement (Presentation and Works & Parks and Natural Environment)
OS
622
0
635
1,257
P&A
280
0
2,025
2,305
Bencon Plant & Equipment
P&A
0
0
320
320
Parks Plant & Equipment
P&A
18
0
106
124
Total People and Processes
920
0
3,893
4,813
TOTAL CAPITAL AND MAJOR WORKS 2012/13 Less Projects accounted for as operating items but managed as part of the Capital Works Program
13,527
610
39,476
53,613
0
(50)
(2,030)
(2,080)
TOTAL CAPITAL WORKS 2012/13
13,527
560
35,346
51,533
Legend - Responsible Director OS Organisation Support P&A Presentation & Assets P&D Planning & Development CF City Futures CW Community Wellbeing
Proposed Greater Bendigo City Council Budget – 2012/13
83
APPENDIX C
Road
Locality
Externally Funded
Extent
Internally Funded
Total Cost
Bridge Works Kennington Reservoir Dam Wall
Kennington
Replace Timber Bridge at Spillway SN 114
0
45,000
45,000
$0
$45,00000
$45,000
Drainage Works Baxter St, Joseph St
Bendigo
Kerb and Channel, Layback, Embankment GB2833
0
26,000
26,000
Forest St, Rowan St, View St
Bendigo
Pits and Pipes
0
330,000
330,000
Langston St, Forrest Lane
Bendigo
Construct New Pipes and Pits from Forrest Lane into Langston St GB2195
0
110,000
110,000
Lily St
Bendigo
Replace Existing Culvert Pipes with Box Culverts in Gutters GB2880
0
45,000
45,000
Queen St ( Rivers )
Bendigo
From No 44-50 Queen St to Bendigo Creek Via Edward St
0
380,000
380,000
Rosalind St
Bendigo
Upgrade Drainage RCP and Pits as part of Full Road Construction GB2354
0
248,500
248,500
Alliance / Firth Sts
California Gully
100 Year Pipe System GB1793
0
232,000
232,000
California Gully Shopping Centre
California Gully
Ester St to Eaglehawk Road, Stage 3 & 4
0
740,000
740,000
Victoria Lane
Eaglehawk
Eaglehawk Creek
0
270,000
270,000
Ironstone Rd - Epsom Drainage Project
Epsom
Ironstone Rd Retardation Basin / Drainage System
0
500,000
500,000
Pleasant Vale Crescent 25
Flora Hill
New RCP Down Walkway GB2402
0
60,000
60,000
Raymond Ave, Houston St
Flora Hill
Pipe, Pits, Small Embankment GB2832
0
132,000
132,000
Aspinall St
Golden Square
South of Mistletoe St to MacKenzie St West, Pipe Major Storm Event to Reserve
150,000
350,000
500,000
Burns St
Golden Square
Run 150 PVC Behind Kerb and Redo Layback and Driveway GB2456
0
20,000
20,000
Renwick St
Golden Square
Reinstate Open Drain, Add Pits and Pipes GB2812
0
23,000
23,000
Specimen Hill Rd No 47
Golden Square
Extend 300 RCP Along Road to Driveway
0
25,000
25,000
Symonds St
Golden Square
Pits and Pipes
0
64,000
64,000
Thistle St
Golden Square
Retardation Basin
0
150,000
150,000
Wade Lane
Golden Square
No 20, Request No: 800083. Kerb Inc Drainage
0
70,000
70,000
Willis Rd
Huntly
Construct Large Open Drains Along Willis Rd GB2172
0
39,000
39,000
Eaglehawk Rd No 110
Ironbark
Replace Existing Sep With EKI in Rae St
0
8,500
8,500
Fairview Rd
Kangaroo Flat
Create Large Open Drain Along East Side and Box Culverts to Driveways
0
52,000
52,000
Gold Hill Court
Kangaroo Flat
450 Trench Grate Across Court
0
10,500
10,500
High St No 387 Living Well Retirement Village
Kangaroo Flat
From No 387 To Phillis St, Extend From Highway Culvert To Phillis St
0
210,000
210,000
Needlewood Drive
Kangaroo Flat
Road Reserve Opposite 10-14 Needlewood Drive, Overland Flowpath Diversion Wall
0
50,000
50,000
84
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX C
Road
Locality
Extent
Externally Funded
Internally Funded
Total Cost
Olympic Parade & Station St
Kangaroo Flat
House Connections: 12 & 14 Olympic Parade
0
30,000
30,000
Rathbones Lane, Yvonne Court, Monsants Rd
Maiden Gully
100 Year Pipe From Rathbones Ln to Protect Yvonne Crt And Monsants Rd GB2885
0
570,000
570,000
Smith St, No 27
Maiden Gully
Construct New Culvert Across Road and Earth Embankment GB2841
0
50,000
50,000
Gladstone St No 77
Quarry Hill
Upgrade Existing Broken Urbanware Pipe Through No 77
0
10,000
10,000
Pyke St, Pine St
Quarry Hill
Embankment, Driveways and Long Lintel Pit GB2881
0
23,000
23,000
Harley St, Teal Crt, Sovereign Crt
Strathdale
Sovereign Crt to Reservoir Rd, Stage 2 Works GB1994
0
350,000
350,000
Napier St, 495, White Hills
White Hills
225 PVC And Pits along Spoon Drain and 300 RCP in front of Kerb With Sep's GB2331
0
50,000
50,000
Minor Drainage Jobs
0
44,500
44,500
$150,000
$5,273,000
$5,423,000
0
112,500
112,500
Various Footpath Works Chapple St
California Gully
Alder St
Golden Square
MacKenzie St West to High St, North Side
0
75,000
75,000
High St
Golden Square
Laurel St to Exit from Service Station, South Side
0
84,000
84,000
Symonds St
Golden Square
Aspinall St to Magazine Blvd
0
72,000
72,000
Midland Hwy
Huntly
Gungurru Rd to Pasley St, East Side
0
106,000
106,000
Browning St
Kangaroo Flat
MacKenzie St West to Freeman Dve, South Side
0
136,500
136,500
Beckhams Rd
Maiden Gully
Carolyn Way to Existing at Calder Hwy, East Side
0
74,000
74,000
Finn St
North Bendigo
Waratah St to Thales Entry, Black Spot Funding for Pedestrian Refuge
0
62,500
62,500
Retreat Rd
Spring Gully
Kristy Dve to Cook Street, East Side
0
337,500
337,500
Minor Extensions / Footpath Renewals
0
32,500
32,500
$0
$1,092,500
$1,092,500
36,500
30,500
67,000
2,500
199,000
201,500
0
54,500
54,500
$39,000
$284,000
$323,000
Various
West Side Existing to Bright St
Kerb & Channel Works Ebden St
Heathcote
McIvor St to Marshall Cres, East Side
Joan St
Ironbark
Full Length, Both Sides
Various
Minor Kerb Renewals and Extensions
Road Works Edward St
Bendigo
Wills St to Queen St, Incl Footpath, Kerb and Queen St Construction
0
500,000
500,000
East Bendigo Link Rd (Lyons St / Heywood St)
East Bendigo
Napier St to Past Railway Line, Reconstruct Road and New Railway Crossing
0
502,000
502,000
Proposed Greater Bendigo City Council Budget â&#x20AC;&#x201C; 2012/13
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APPENDIX C
Road
Locality
Extent
Externally Funded
Internally Funded
Total Cost
Caroline St
Flora Hill
Carpenter St to Havlin St East, Reconstruction
0
200,000
200,000
Jobs Gully Rd
Jackass Flat
Edwards Rd to Howard St, Reconstruction and Widening
0
873,500
873,500
Furness St
Kangaroo Flat
Harvey Norman to Cannon Lane, Reconstruction Incl Footbpath on South Side
0
383,000
383,000
MacKenzie St West - Stage 2
Kangaroo Flat
Alder St to Olympic Pde, Stage 2 Works
0
800,000
800,000
Wesley St
Kangaroo Flat
Approaches to Bridge, Reconstruction of Road
0
300,000
300,000
Various
Gravel Shoulder Resheeting
0
500,000
500,000
Various
Various Major Patching
0
350,000
350,000
Various Roads
Gravel Resheeting
0
2,000,000
2,000,000
Various Roads
Reseals and Asphalt Resurfacing 2012/13
0
2,700,000
2,700,000
Various Roads
Various Miscellaneous Works
0
97,000
97,000
Various Roads
Final Seals 2012/13
0
150,000
150,000
$0
$9,355,500
$9,355,500
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Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX D
Appendix D - Maps D – 1: Business Land A D – 2: Business Land C Maps attached.
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APPENDIX D
Dâ&#x20AC;&#x201C;1
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Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX D D–2
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APPENDIX E
Appendix E - Glossary of Terms Term Accounting Standards
Activities and initiatives
Annual budget
Annual operating budget (Budgeted income statement)
Annual report Annual reporting requirements
Asset renewal
Asset upgrade
Asset expansion
Borrowing strategy
Budgeted balance sheet (Budgeted balance sheet)
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Definition Accounting standards are issued from time to by the professional accounting bodies and are applicable to the preparation of general purpose financial reports. Section 127 of the Act requires a budget to contain a description of the activities and initiatives to be funded by the budget, along with a statement as to how they will contribute to the achievement of the Council’s strategic objectives as specified in the Council Plan. The activities of Council are those services which it undertakes to meet the needs of the community as reflected in the Council Plan. They tend to be ongoing in nature and have internal and external customers. Initiatives are tasks or actions that are once-off in nature and lead to improvements in services or service levels. This document is framed within the Council’s strategic resource plan and sets out the short term goals and objectives as part of the overall strategic planning framework. The budgeted income statement shows the expected operating result in the forthcoming year with a distinction made between revenue received for operating purposes and revenue received for capital purposes. The annual report prepared by a Council under section 131 of the Act. Annual reporting requirements include the financial reporting requirements of the Act, Accounting Standards and other mandatory professional reporting requirements. Expenditure on an existing asset, which returns the service potential or the life of the asset, up to, that which it had originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time. Expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the asset base. Expenditure which extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. Expansion expenditure is discretional which increases future operating and maintenance costs because it increases council’s in the asset base, but may be associated with additional revenue from the new user group. A borrowing strategy is the process by which the Council’s current external funding requirements can be identified, existing funding arrangements managed and future requirements monitored. The budgeted balance sheet shows the expected net current asset, net non-current asset and net asset positions in the forthcoming year compared to the forecast actual in the current year. The budgeted balance sheet should be prepared in accordance with the requirements of AASB 101 - Presentation of Financial Statements.
Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX E Term Budgeted cash position (Budgeted cash flow statement)
Budgeted income statement
Budget preparation requirement Capital contributions
Capital expenditure
Capital works budget (Budgeted capital works statement) Capital works program Carry forward capital works
Carry forward surpluses
Council plan
Community satisfaction survey Current year rate increase (Rating strategy) Differential rates
Discretionary reserves
External funding sources (Analysis of capital budget)
External influences in the preparation of a budget Financial sustainability
Definition The budgeted cash flow statement shows the expected net cash inflows and outflows in the forthcoming year in the form of reconciliation between opening and closing balances of total cash and investments for the year. Comparison is made to the current year’s expected inflows and outflows. The budgeted cash flow statement should be prepared in accordance with the requirements of AASB 107 Cash Flow Statements. The budgeted income statement shows the expected operating result in the forthcoming year compared to the forecast actual result in the current year. The budgeted income statement should be prepared in accordance with the requirements of AASB101 Presentation of Financial Statements. Under the Act, a Council is required to prepare and adopt an annual budget by 31 August each year. Capital contributions include assets contributed by developers, government grants and contributions received for capital purposes and contributions from developers such as open space. Capital expenditure is relatively large (material) expenditure that produces economic benefits expected to last for more than 12 months. A pre determined ‘threshold’ may be used which indicates the level of expenditure deemed to be material in accordance with Council’s policy. Capital expenditure includes renewal, expansion and upgrade. Where capital projects involve a combination of renewal, expansion and upgrade expenditures, the total project cost needs to be allocated accordingly. The capital works budget shows the expected internal and external funding for capital works program and the total proposed capital works program for the forthcoming year with a comparison with forecast actual for the current year. Capital works projects that will be undertaken during the 2012/13 year. Carry forward capital works are those that that are incomplete in the current budget year due to unavoidable delays and will be completed in the following budget year. Inappropriately recognised by many Councils at the end of the current year as the critical starting point in the development of the budget for the following year. This document sets out the medium term goals and objectives as part of the overall strategic planning framework and strategic resource plan and is prepared under section 125 of the Act. A survey conducted on an annual basis by every Council. A statement included in the budget quantifying the amount of the rate change for the forthcoming year and disclosing any significant factors influencing the rate change. When a Council intends to declare a differential rate (eg business and residential), information prescribed by the Act under section 161 must be disclosed in the Council budget. Discretionary reserves are funds earmarked by Council for various purposes. Councils can by resolution change the purpose of these reserves. External funding sources relate to capital grants or contributions, which will be received from parties external to the Council. It also includes the proceeds of assets sold to fund the capital works program. Matters arising from third party actions over which Council has little or no control, eg. change in legislation. A key outcome of the strategic resource plan. Longer term planning is essential in ensuring that a Council remains financially sustainable in the long term.
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APPENDIX E
Term Financing activities
Infrastructure
Infrastructure strategy
Internal funding sources (Analysis of capital budget)
Internal influences in the preparation of a budget Investing activities
Key assumptions
Key budget outcomes Key strategic activities
Legislative framework Local Government (Finance and Reporting) Regulations 2004
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Definition Financing activities means those activities which relate to changing the size and composition of the financial structure of the entity, including equity, and borrowings not falling within the definition of cash. Physical assets of the entity or of another entity that contribute to meeting the public’s need for access to major economic and social facilities and services. An infrastructure strategy is the process by which current infrastructure and ongoing maintenance requirements can be identified, budgeted capital works implemented and future developments monitored. The key objective of an infrastructure strategy is to maintain or preserve Council’s existing assets at desired condition levels. If sufficient funds are not allocated to asset preservation then Council’s investment in those assets will reduce, along with the capacity to deliver services to the community. Internal sources relate to cash and investments held in reserves or which are uncommitted and cash that will be generated from the operations of Council during the budget year. The latter should equate to the cash inflows from operating activities less capital revenue. Matters arising from Council actions over which there is some element of control (eg approval of unbudgeted capital expenditure). Investing activities means those activities which relate to acquisition and disposal of non-current assets, including property, plant and equipment and other productive assets, and investments not falling within the definition of cash. When preparing a budgeted balance sheet of financial position, key assumptions upon which the statement has been based should be disclosed in the budget to assist the reader when comparing movements in assets, liabilities and equity between budget years. The key activities and initiatives that will be achieved in line with the Council Plan. Section 127 of the Act requires the budget to separately identify the Key Strategic Activities (KSAs) to be undertaken during the financial year and performance targets and measures in relation to each KSAs. Section 132 of the Act states that the KSAs and performance targets and measures specified under Section 127 of the Act must be included in the Performance Statement in the Annual Report and be subject to audit. KSAs are those significant activities and/or initiatives which will directly contribute to the achievement of the Council Plan during the current year. KSA’s can be major new initiatives over and above normal service delivery or a combination of activities and initiatives which have a major focus for the budget year and lead to significant outcomes for the organisation and community. The Act, Regulations and other laws and statutes which set a Council’s governance and reporting requirements. The objective of these Regulations, made under section 243 of the local Government Act 1989 and which came into operation on 20 April 2004, is to prescribe for the purposes of the Local Government Act 1989: (a) The manner in which the standard statements and financial statements of a Council are to be prepared and their contents (b) The information to be included in a Council Plan, budget, revised budget and annual report (c) Other matters required to be prescribed under Parts 6 and 7 of the Act. Proposed Greater Bendigo City Council Budget - 2012/13
APPENDIX E Term New assets
Non-financial resources
Operating activities Operating expenditure
Operating performance (Impact of current year on 2012/13 budget Operating revenue
Performance statement
Prudential ratios and thresholds (Borrowing strategy) Rate structure (Rating strategy) Rating strategy
Regulations Restricted funds and discretionary reserves Revised budget
Road Management Act
Service delivery (in strategic resource plan)
Standard statements
Definition New assets do not have any element of expansion or upgrade of existing assets. New capital expenditure may or may not result in additional revenue for Council and will result in an additional burden for future operation, maintenance and capital renewal. Resources of a non-financial nature (such as human resources, information systems and processes, asset management systems) which are consumed by a Council in the achievement of its strategic resource plan goals. Operating activities means those activities that relate to the provision of goods and services. Operating expenditure is defined as consumptions or losses of future economic benefits, in the form of reductions in assets or increases in liabilities; and that result in a decrease in equity during the reporting period. This statement shows the expected operating result as compared to the budget result in the current year separating operating and capital components of revenue and expenditure. Operating revenue is defined as inflows or other enhancements or savings in outflows of future economic benefits in the form of increases in assets or reductions in liabilities and that result in an increase in equity during the reporting period. Required by section 132 of the Act, a performance statement must be included in the annual report of a Council and include: (a) The key strategic activities and performance measures specified in the budget under section 127 for that financial year (b) The actual results achieved for that financial year having regard to those performance targets and measures. Used by the Department of Planning and Community Development in assessing a Councilâ&#x20AC;&#x2122;s borrowing capacity as part of the annual Australian Loan Council borrowing allocation. Site value (SV), capital improved value (CIV) or net annual value (NAV) are the main bases upon which rates will be levied. These should be detailed in the budget statement. A rating strategy is the process by which the Councilâ&#x20AC;&#x2122;s rate structure is established and how the quantum of rate change has been determined, taking into consideration longer term philosophy issues and framework. Local Government (Finance and Reporting) Regulations 2004. Monies set aside for statutory and discretionary purposes. Section 128 of the Act permits a Council to prepare a revised budget if circumstances arise which cause a material change in the budget and which affects the financial operations and position of the Council. The purpose of this Act which operates from 1 July 2004 is to reform the law relating to road management in Victoria and to make relating amendments to certain Acts, including the local Government Act 1989. A key outcome of a strategic resource plan, service delivery must be linked with performance strategies in order to assess the adequacy of service delivery and the impact on long term budget preparation. Prepared under section(s) 126(2)(a), 127(2)(a) and / or 131(1)(b) of the Act, standard statements are required in the: -Strategic resource plan -Budget -Annual report While the same set of statements (detailed below) is required in each of these reports, they have different focuses due to the
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APPENDIX E
Term
Statutory reserves
Strategic planning framework
Strategic resource plan (SRP)
The Act Underlying result
Unrestricted cash and investments Valuation of Land Act 1960
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Definition differing purposes of each report. The formats of these statements therefore need to reflect these different focuses being strategic, management and reporting, while remaining comparable. The standard statements are the: -Standard Income Statement -Standard Balance Sheet -Standard Cash Flow Statement -Standard Capital Works Statement Statutory reserves are funds set aside for specified statutory purposes in accordance with various legislative and contractual requirements. These reserves are not available for other purposes. A “community owned” document or process which identifies the long term needs and aspirations of the Council, and the medium and short term goals and objectives which are framed within the long term plan. The Act requires that a Council plan should include a strategic resource plan that includes financial and non-financial resources including human resources. The strategic resource plan outlines the resources required to achieve the Council plan. As a minimum a strategic resource plan must include in respect of at least the next four years: (a) Standard statements describing the required financial resources (b) Statements describing the required non-financial resources including human resources. Such planning is essential in ensuring that an organisation remains financially sustainable in the long term. The annual budget should be consistent with the first projected year of a strategic resource plan. Local Government Act 1989 The underlying result is a measure of financial sustainability of the Council which can be masked in the net surplus (deficit) by nonrecurring or capital related items. It is equal to the net surplus (deficit) adjusted for capital grants, non-monetary contributions and other once-off adjustments. This definition differs from the underlying surplus as determined by the Victorian Auditor General in his report “Local Government: Results of the 2009-10 Audits” issued in February 2011 which includes capital contributions in the calculation. In this Guide, capital grants are excluded from the definition on the basis that they are recorded as income but are reflected in assets capitalised on Council's balance sheet and depreciated in later years. Unrestricted cash and investments represents funds that are free of all specific Council commitments and are available to meet daily cash flow requirements and unexpected short term needs. The Valuation of Land Act 1960 requires a Council to revalue all rateable properties every two years.
Proposed Greater Bendigo City Council Budget - 2012/13