Special rate variation

Special Rate Variations

2015 Special Rate Variation

The 2015 Special Rate Variation (SRV) was approved by IPART (Independent Pricing and Regulatory Tribunal of NSW) in May 2015 for a SRV over five years to 2019-2020. The 2015 SRV has concluded and is not part of the 2022-2023 budget; however, we will continue to report until 2025.

The revenue raised by the 2015 SRV has been critical in ensuring we achieve financial sustainability. It has also allowed us to accelerate the completion of our priority projects and Capital Works Program as well as fund critical infrastructure renewal projects.

CN will continue to report on the revenue that was raised from the 2015 SRV, showing our commitment to financial sustainability.

Resourcing Newcastle 2040

Our resources to deliver Newcastle 2040

Newcastle 2040 defines our long-term community aspirations and sets the vision for the next 10+ years. However, successful delivery of Newcastle 2040 to our community relies on financial, asset and workforce planning undertaken as part of

Resourcing Newcastle 2040.

Community Engagement Strategy Community Strategic Plan

Informing and supporting strategies Continuous monitoring and review

Community Strategic Plan

Community Strategic Plan 1

Delivery Program • Operational Plan

Long-Term Financial Plan • Workforce Development Strategic Plan • Asset Management Strategy and Plans

Reporting to our community

Performance Reports • Annual Report • State of our City Report

Resourcing Newcastle 2040 is an integral part of the IPR framework and provides a clear picture on how we plan to resource delivery. Our planning for Resourcing Newcastle 2040 is aligned with the community’s vision for the future, as well as the planning process and implementation of Delivering Newcastle 2040. Our resourcing is transparent with clear accountability for delivery, bringing together CN's three interrelated plans in relation to resources. These plans facilitate how to best manage our assets and infrastructure, plan for replacement and ensure that adequate funding and skills are available for service delivery and operations. Resourcing Newcastle 2040 consists of:

Our People - Workforce Development Strategic Plan Our Assets - Asset Management Planning Our Finance - Long-Term Financial Plan

Workforce Development Strategic Plan

This plan forecasts how we will meet workforce resourcing and capability requirements to deliver on our priorities and objectives. The focus areas outlined in the Workforce Development Strategic Plan will have significant impact on the way we deliver our services to the community, highlighting the importance of strategic workforce planning and engagement. The key priorities of our plan are: 1. Strengthen our workplace culture 2. Invest in our people to grow and excel 3. Build the CN employer brand 4. Be future ready. Over the next four years, CN will continue to build capability as a thriving, people-centric organisation as we work to improve service levels sustainably and within approved budgetary and resource allocations.

Asset Management Planning

This plan enables sustainable and cost-effective management of our city's infrastructure to deliver on our priorities and objectives. We manage over $2 billion of infrastructure assets in a cost-effective manner to deliver services to our residential and business communities. Asset management covers roads, footpaths, buildings, drainage, waste management, parks and environment, as well as fleet and plant management. Our asset planning is driven by 10 key asset management objectives: 1. Align service delivery expectations with available funding to achieve sustainable management of all required supporting assets 2. Identify levels of funding required to achieve a sustainable Capital Works Program and assess the implications of different funding levels on levels of service 3. Adjust resources and invest in building capacity to deliver works programs 4. Ensure renewal and maintenance required to minimise life-cycle costs and maintain agreed level of service is fully funded and reportable 5. Use Service Asset Plans to coordinate decision-making regarding levels of service and implement relevant strategies and plans 6. Only approve new services and/or assets where the full life-cycle cost of doing so has been evaluated and appropriate supporting budget allocations made 7. Capture and improve asset data and service information 8. Align asset management activities with Newcastle 2040 9. Ensure accountability, responsibility and reporting requirements for assets are established, relevant, clearly communicated and implemented 10. Incorporate environmental sustainability into delivery of services. Asset planning includes an Asset Management Policy, Asset Management Strategy and the Asset Management Plan (which provides a summary of CN's 27 service-based Asset Plans).

Long-Term Financial Plan

This plan informs decision-making by modelling financial impacts. It captures the financial implications of asset management and workforce planning to help us deliver on our priorities and objectives while ensuring long-term financial sustainability. Our Long-Term Financial Plan includes a financial forecast for a minimum of 10 years and is reviewed annually. The financial forecasts are driven by our priorities and objectives from Newcastle 2040, key metrics, assumptions and inputs, and core information contained within Delivering Newcastle 2040, Asset Management Strategy, Service Asset Plans and Workforce Development Strategic Plan. Our commitment to delivering our objectives to our community while achieving sound financial management is guided by key financial objectives as outlined in the Local Government Act 1993: 1. Spending should be responsible and sustainable, aligning revenue and expenses 2. Invest in responsible and sustainable infrastructure for the benefit of the local community 3. Carry out effective financial and asset management 4. Consider intergenerational equity in financial management. Building on these core objectives, CN has identified further objectives required to strengthen long-term financial sustainability: 1. Maintain regular net operating surpluses 2. Renew and maintain assets within a sustainable range 3. Maintain a strong cash and liquidity position 4. Foster a financial legacy of being prudent and responsible.