Resourcing Strategy 2020/21
Workforce Management Plan Digital Resource Management Plan Asset Management Plan Long Term Financial Plan
www.georgesriver.nsw.gov.au
2
Georges River Council // Resourcing Strategy 2020/21
Statement of acknowledgement of the Biddegal People Georges River Council acknowledges that the Biddegal people of the Eora Nation are the traditional inhabitants and custodians of all land and water in which the Georges River region is situated. Council recognizes Aboriginal people as an integral part of the Georges River community and highly values their social and cultural contributions. Georges River Council is committed to showing respect for Aboriginal people as Australia’s First Peoples. Council has adopted the practice of acknowledging the Traditional custodians of Country at events, ceremonies, meetings and functions.
3
Council values and statements Community Vision Statement In 2020, the Georges River area is known as a clean, green and welcoming place with beautiful and accessible bushland and waterways. It offers a diversity of active, connected places and heritage areas that we plan for in collaboration with our community. People attend many events and activities and can access a choice of housing and a mix of jobs and economic opportunities near where they live.
Vision A progressive, environmentally and culturally rich community enjoying a unique lifestyle.
Mission A leading, people-focused organisation delivering outstanding results for our community and city.
Values United
We will work collaboratively as one team with common purpose and respect
Professional
We will act with integrity and seek opportunities to learn and grow
Honest
We will be open and truthful with each other and our community
Accountable
We will own our decisions and actions as we strive for excellence
4
Georges River Council // Resourcing Strategy 2020/21
5
Contents
Statement of acknowledgement of the Biddegal People..............3 Council values and statements.......................................................4 Community Vision Statement.............................................................4 Vision..................................................................................................4 Mission...............................................................................................4 Our values..........................................................................................4 Introduction.......................................................................................8 Our 6 Pillars......................................................................................8 Background – Legislative Framework............................................9 Workforce Management Plan..........................................................12 What is the Workforce Management Plan?........................................14 Key Themes of Council’s Workforce Management Plan....................15 Where are we now?...........................................................................16 Where are we going?.........................................................................26 How will we get there?.......................................................................28 Implementation, monitoring and review..............................................31 Workforce Management Action Plan..................................................32 Digital Resource Management Plan...............................................37 What is the Digital Resource Management Plan?..............................38 Key themes of Council’s Digital Resource Management Plan...........39 Where are we now?...........................................................................41 Where are we going?.........................................................................44 How will we get there?.......................................................................50
6
Georges River Council // Resourcing Strategy 2020/21
Implementation, monitoring and review..............................................52 Digital Resource Management Action Plan........................................53 Asset Management Plan..................................................................56 What is the Asset Management Plan?...............................................58 Key themes of Council’s Asset Management Plan.............................59 Where are we now?...........................................................................60 Where do we want to be?...................................................................67 Implementation, Monitoring and Review............................................70 How will we get there?.......................................................................74 Asset Management Improvement Plan..............................................76 Long Term Financial Plan................................................................79 Executive Summary...........................................................................80 Financial Governance Principles........................................................81 Financial Sustainability Challenges....................................................82 Planning for our Future – Changes to Rates......................................86 Socio-Economic Snapshot.................................................................90 Financial Models Overview................................................................92 Detailed Financial Models..................................................................96
7
Introduction The Resourcing Strategy forecasts Council’s ability to deliver assets and services to the community over the next 10 years in line with the adopted Community Strategic Plan 2018-2028.
8
Georges River Council // Resourcing Strategy 2020/21
Our six pillars 1
A protected environment and green open spaces
2
Quality, well planned development
3
Active and accessible places and spaces
4
A diverse and productive economy
5
A harmonious and proud community with strong social services and infrastructure
6
Leadership and transparency
Background - Legislative Framework Like all Councils, Georges River Council operates under the Local Government Act 1993. The Act requires us to produce a suite of documents as part of an Integrated Planning and Reporting Framework. The Framework brings together Council's various plans, giving both Council and the community a clear understanding of how each of the plans interact. This process maximises Council efforts to strategically and holistically plan for the future. This Resourcing Strategy has been developed alongside our first-ever Community Strategic Plan, which is based on extensive community engagement during 2017. The Community Strategic Plan 2018-2028 contains the community’s priorities and aspirations as well as the strategies for achieving these goals.
Our Delivery Program sets out the proposed actions to achieve the goals and strategies in the Community Strategic Plan. Normally, the Delivery Program runs for four years; as a recently merged Council, our first Delivery Program is for three years to align with the local government election cycle. We are now commencing the third year of this program. We have also prepared a one-year Operational Plan to show the specific actions and budgets that we propose for 2020/21, consistent with the Delivery Program.
COMMUNITY STRATEGIC PLAN 10 + YEARS
COMMUNITY ENGAGEMENT
DELIVERY PROGRAM 3 YEARS
OPERATIONAL PLAN 1 YEAR
RESOURCING STRATEGY Contains the Workforce Management Plan, Digital Resource Management Plan, Asset Management Plan and Long Term Financial Plan
PERPETUAL MONITORING AND REVIEW
ANNUAL REPORT 9
Resourcing Strategy Workforce Management Plan
Long Term Financial Plan
The Workforce Management Plan identifies the people requirements, including skills and employment practices, needed to implement our Delivery Program which is informed by the Community Strategic Plan. The plan integrates principles of human resource management, workforce planning and capability building. It outlines how we will develop and maintain a high-calibre employee base that meets current and future organisational and community needs.
The Finance Strategy and Long Term Financial Plan (LTFP) are key components of Georges River Council (GRC) Resourcing Strategy.
Digital Resource Management Plan The Digital Resource Management Plan outlines Council’s commitment to utilising the best digital framework possible to enable responsive and timely services and information. It aligns with Council’s corporate planning and reporting framework. Its four year lifespan will ensure that our commitment to digital efficiency and evolution continues throughout the life of the current Resourcing Strategy. It will also support new priorities as they are identified through a review of the Community Strategic Plan and Delivery Program in 2020/2021. This Plan will evolve as Council continues its journey from transition to transformation and innovation.
Asset Management Plan The Asset Management Plan sets out the broad framework for undertaking structured and coordinated management of Council’s infrastructure assets. It outlines key principles that underpin our approach to providing the assets that are essential to our community. The Strategy highlights the long-term funding challenges Council must address to meet the commitments outlined in the Community Strategic Plan and deliver the level of service desired by the community over the next 10 years.
10
Georges River Council // Resourcing Strategy 2020/21
The Resourcing Strategy details the overall plan on how Council will resource its planned activities over the next decade through the use of its money, people and assets, to meet the community’s needs and desires. The LTFP of Council presents a financial projection of the longer term outlook of its operations. The LTFP takes into account known and projected events over the next 10 years and compiles the best estimates of its operating results and financial position. These projections form a roadmap of the operations and give Council an opportunity to: • Assess different courses of corrective action and quantify the potential outcomes • Ensure sustainability through positive net results • Structure the operations, based on affordability and financial sustainability.
11
12
Georges River Council // Workforce Management Plan 2020/21
Workforce Management Plan 2020/21
13
What is the Workforce Management Plan? Every council in NSW operates within the Office of Local Government’s Integrated Planning and Reporting (IP&R) Framework. The Framework requires councils to deliver a suite of strategic documents that support a holistic approach to planning for the future, including a long-term Community Strategic Plan, a four-year Delivery Program and annual Operational Plan (and budget). These are informed by a long-term Resourcing Strategy that consists of: • Workforce Plan • Digital Resource Management Plan • Asset Management Plan • Long-Term Financial Plan. In line with these requirements, we have developed this Workforce Plan as a key component of the broader Resourcing Strategy.
14
Georges River Council // Workforce Management Plan 2020/21
This document integrates principles of human resource management, workforce planning and capability building. It outlines how we will develop and maintain a highcalibre employee base that meets current and future organisational and community needs. This Plan identifies objectives and strategies that focus on staff retention, skills and capability development. They cultivate strong leadership and position Council as an employer of choice. This Plan includes ten themes that followed consultation with managers, staff, unions, local government and industry bodies; analysis of our current workforce demographic; and an understanding of challenges and future requirements to support our goal to be an employer of choice.
Key themes of Council’s Workforce Management Plan 1. Capability mobility 2. Continuous learning 3. Flexible resource allocation 4. Information management 5. Iterative business improvement processes 6. Leadership development 7. Open physical and virtual environment
Actions to support these themes are outlined in subsequent sections. Council’s People and Culture Department is responsible for implementing the actions. The Plan will evolve as the community and the organisation reviews and evaluates its needs. At a minimum, it will be reviewed every year alongside our Operational Plan to ensure its objectives reflect the changing workforce, community and Council priorities.
8. Partnerships and networking 9. Performance centric 10. Technology, systems and tools
15
Where are we now? About our organisation
Office of the General Manager
Community and Culture Directorate
Business and Corporate Services Directorate
Manager Office of the General Manager
Director Community and Culture
Director Business and Corporate Services
Chief Audit Executive
Manager Customer Experience and Events
Acting Executive Manager People and Culture
Manager Community and Cultural Development
Chief Information Officer
Acting Manager Library Services
Chief Financial Officer
Manager Children’s Services
Manager Governance and Risk Management
Georges River Council has 15 Councillors across five wards. Council’s management structure is divided into five permanent Directorates: • • • • • •
16
Office of the General Manager Business and Corporate Services Community and Culture Assets and Infrastructure Environment and Planning City Strategy and Information (Temporary)
Georges River Council // Workforce Management Plan 2020/21
GENERAL MANAGER
Environment and Planning Directorate
Assets and Infrastructure Directorate
City Strategy and Innovation Directorate
Legal Services
Director Environment and Planning
Director Assets & Infrastructure
Director City Strategy and Innovation
Director Legal Services General Counsel
Manager Development and Building
Acting Executive Manager Engineering Operations
Coordinator Strategy and Innovation
Senior Solicitor
Manager Strategic Planning
Manager Infrastructure
Coordinator Communications and Engagement
Manager Environment, Health and Regulatory Services
Manager Project Delivery
Executive Manager Premium Facilities and Properties
17
Workplace demographics Our people are crucial to how we demonstrate our values and achieve our mission, which are described later in this chapter.
Consisting of permanent, temporary and casual staff, our head count workforce as at 31 December 2019 is 612 staff with an FTE of 567. Head count fluctuates due to establishment vacancies.
Our workforce is a mix of local and non-local employees with 45.10% of staff traveling less than five kilometres to get to work (Georges River Council, 2019).
Approximately one quarter (26%) of our staff hold management or leadership roles and 74% are in operational positions.
Females (51.47%) and males (48.53%) are almost equally represented in Council’s workforce; however, females (62.50%) account for the largest percentage of employees in management positions, which is higher than the NSW median. We face the challenges of an ageing workforce (22% of employees are 55 or over). The highest proportion (42%) of our workforce were born between 1965 and 1980, with the remaining workforce born between 1980 to 2001, indicating a wide spread of represented age groups.
18
Georges River Council // Workforce Management Plan 2020/21
Category
Subcategory
Count (n=)
Percentage %
FTE
Current FTE (excluding casuals)
567
-
Head Count (excluding casuals)
612
-
Permanent
561
91.67%
Temporary
51
8.33%
Casual Staff
66
-
Male Workforce
297
48.53%
Female Workforce
315
51.47%
9
37.50%
Females in Management
15
62.50%
18-24
31
5.07%
25-34
119
19.44%
35-44
155
25.33%
45-54
170
27.78%
55-64
115
18.79%
65 +
22
3.59%
Less than 5km distance
276
45.10%
Employees by status
Gender
Males in Management Age
Distance travelled to work
5km to 10km distance
188
30.72%
10km to 15km distance
38
6.21%
15km to 20km distance
27
4.41%
20km + distance
83
13.56%
-
15.00%
Turnover
Rolling Annual as at 30 June 2019
Length of service
Less than 5 years
315
51.47%
5 to 10 years
104
16.99%
11 to 15 years
83
13.56%
16 to 20 years
42
6.86%
20 + years
68
11.11%
5
0.82%
Diversity and inclusion
% Of staff with a disability % Aboriginal or Torres Strait Islander % Language other than English at home % Culturally diverse
**
**
53
8.66%
165
26.96%
19
Workforce skills Our broad occupational base delivers 150 different services to the local community and requires staff from professional, technical, operational and administrative occupations. Directorate
Department
Roles
Georges River Council Leadership
General Manager Directors Managers Coordinators
Team Leaders Supervisors Executive Assistants Personal Assistants
Assets and Infrastructure
Projects
Building Projects Project Delivery Administration
Environmental and Open Space Officer Civil Works Projects Officer
Engineering Operations
Business Projects City Presentation Trades Procurement Officer
Service Delivery North Service Delivery South Service Delivery East Service Delivery West Cleansing Field Health and Safety Specialist
Infrastructure
Administration Design Survey & Drainage Parks and Waterways Traffic and Transport
Security & Emergency Assets & Restorations Officer Building Maintenance Officer Property & Assets Officer
Premium Facilties & Properties
Specialist Administration and Marketing Officer Head of Events Operations Officers
Operations Supervisor
Customer Service and Events
Communications Officers Customer Service Officers
Events Officers
Children’s Services
Administration Officers Childcare Assistants Childcare Workers
Cooks, Cleaners Early Childhood Teachers/ Educators
Community and Culture
Community and Cultural Community Development Development Officers Cultural Services Officers Library Services
20
Library Assistants Library Officers Librarians
Georges River Council // Workforce Management Plan 2020/21
Administration Officers Technical Officers Curators
Directorate
Department
Roles
Environment and Planning
Development and Building
Building Certification Officers Development Assessment Officers Development & Building Administration Officers
Consultant Arborist Senior Planner Business Improvement
Environmental Health and Regulatory Services
Compliance Officers Sustainability and Waste Officers
Parking/Rangers Licensing and Permits Officers
Strategic Planning
Economic Development Officer Economic Strategic Planner Administration Officer
Strategic Planners Strategic Project Officer Information Management Officer
General Manager’ s Office
Executive Services Senior Corporate Planner
Community Engagement Officer Corporate Support
Audit
Internal Auditor
Legal Services
General Counsel
Senior Solicitor
City Strategy and Innovation
City Strategy and Innovation Officers Communications Officers
Community Engagement
Financial Reporting
Financial Reporting Finance Officers Rates Management Reporting Officers Accountants Systems, Revenue and Analysis
Information Management
Business Systems Specialists/ Officers Information Management Officers Records Project Officers
IT Projects Officers Geospatial Information Systems Officers
People and Culture
Employee Engagement Officer People & Culture Officers Human Resource Business Partners Payroll Officers
Organisational Capability Officers Human Resource Information Systems Officers Project Support Officer
Governance and Risk
Project Officers Governance Procurement Officers Claims Officers Work Health and Safety Officers Procurement Policy Specialists Policy Officers and Systems Specialist
Office of the General Manager
Business and Corporate Services
21
Financial considerations Employment costs are estimated to account for 41.7% of our total draft estimated 2019/20 operating expenditure and have been developed under the following assumptions: •
continuation of current agreed service levels for delivering outputs, functions and actions
•
a stable workforce number with no significant changes to functions and services
•
an annual turnover rate of between 10 and 20%
•
continued internal focus to develop and grow staff skills, experience and knowledge programs
•
minimal industrial activity
•
no significant labour policy changes
•
appropriate workforce and resources to complete the delivery program and operational plan actions
•
completion of asset management annual programs.
•
using these assumptions, employment costs have been projected to support business as usual service delivery.
With 22% of Council employees aged 55 or over and long tenure we need to plan for impending liabilities associated with staff exiting the workforce. The forecast balance of the Employee Leave Entitlements (ELE) 30 June 2019 is $9.5 million. We will continue to monitor the ELE over the coming years and will actively manage Council’s leave liability. Ongoing capacity to fund rising employment costs will require a strategic approach that maximises revenue streams, reviews service provisions and models, and increases resource capabilities. Increase in employee costs can be attributed to:
22
•
Local Government Award salary/wage and performance review increases
•
changes to employee leave entitlements
•
superannuation costs
•
workers compensation costs
•
staff training costs
•
other employment costs.
Employee costs
2018/19 $’000
2019/20 $’000
2020/21 $’000
Total Employee Costs
58,730
58,730
58,930
Georges River Council // Workforce Management Plan 2020/21
A people culture A strong, positive organisational culture will help us to achieve our community goals, as established through the Community Strategic Plan. We are committed to an engaged and community-focused workforce that is geared toward excellence in service delivery while optimising the customer experience. We proactively encourage a positive culture through engagement with staff and the community. Our organisational culture is guided by our mission and values. The annual staff survey gauges the organisational climate and gives a voice to the satisfaction levels of our workforce. Based on these results, we have developed several programs and initiatives to increase employee satisfaction and drive a positive workplace culture. These are: •
Mission and values: These were adopted in June 2017, to drive our workplace culture.
•
Social events (mufti days, fundraising, community events, international events): Our social calendar encourages staff from different areas of the business to intermingle and support a charitable cause as well as celebrate the diversity of our workforce.
•
Performance excellence reviews: This program focuses on continuous development and feedback and fosters performance excellence. The process will involve continuous conversations with staff, continuous feedback on their performance and continuous alignment of their performance and behaviour with the values of the organisation.
•
Rewards and recognition program: The program acknowledges high achieving employees recognising outstanding customer service, performance, innovation and demonstration of Council’s mission, vision and values. The program is driven by both people managers and amongst staff at a peer-to-peer level.
•
Learning and development program: The River Runs Deep learning and development plan launched in 2017 ensures our people are informed, adaptable and prepared with the skills and knowledge to effectively do their job both now and in the future.
•
Design thinking workshops: These take a bottom-up approach to problem solving and require employees to think collaboratively about solutions to organisational issues.
•
Wellness and Belonging: The Wellness and Belonging Program will include employee wellbeing policies, flexible working strategies to support work/ life balance, a drug and alcohol policy, quit smoking policy and strategies to manage the ageing workforce. All strategies to further enhance Council’s employee value proposition (EVP).
We will continue to monitor our organisational culture and provide opportunities for staff to identify areas of concern and develop appropriately timed and targeted initiatives that improve the workplace culture. 23
Staff Survey Results
24
Georges River Council // Workforce Management Plan 2020/21
Internal workforce challenges A number of local constraints affect our workforce: •
Ageing workforce: 22% of our staff is 55 years or older, meaning a high number of staff will consider retirement in the next 10 years. This may result in staff and skills shortages and the need for more flexible working arrangements.
•
Differing needs of a multigenerational workforce: We have five generations in our workforce, each with unique traits that define them and influence their attitudes and expectations regarding their work. Varying attitudes and expectations directly impact attraction and retention strategies that we must develop to build an agile and resilient long- term workforce.
•
Trends towards limited tenure: Results from the most recent staff survey indicated that 33% of staff are planning to change employers within the next five years, placing corporate knowledge, organisational capability and operational efficiency at risk. Skill gaps: Specific skill shortages have been identified in: -
Strategic Planning and Community Engagement
-
Development Assessment and Compliance Services
-
Corporate Services
-
Children’s Services.
In general the overall market for attracting professionals is increasingly competitive as councils seek to source employees with local government experience. While older workers may retire, younger employees may not have the acquired skills and experience necessary for promotion to senior and managerial roles, which indicates a need for ongoing succession planning.
25
Where are we going? 10-year focus
Over the next year we will:
Consultation on the Community Strategic Plan identified six pillars that underpin our future planning:
•
implement this Workforce Plan
•
implement performance excellence and people capability strategies and programs
•
implement a workplace health and safety system to support a well and safe workplace.
•
a protected environment and green open space
•
quality, well planned development
•
active and accessible places and spaces
•
a diverse and productive economy
•
a harmonious and proud community with strong social services and infrastructure
•
leadership and transparency.
Associated goals and strategies for each pillar will direct our focus over the next 10 years. To make this happen, we need a capable, resilient and diverse workforce, driven by leading people practices (CSP Goal 6.5).
This Workforce Plan also targets other Community Strategic Plan goals, such as developing leadership that focuses on customer service and innovation.
Rising to the challenges Our people are key to our strategic objectives. Therefore, our Workforce Strategy incorporates community expectations for our workforce and identifies the priorities that will assist and motivate our workforce to achieve Council's long-term aspirations. It guides how we can mobilise our workforce to be resilient, sustainable and competent. We will collaboratively attract and retain the necessary skills for an adaptable and accountable workforce that responds to customers, demonstrates respect for all, and gets the job done ethically and safely. Our strategic approach to workforce engagement focuses on: 1. Capability mobility 2. Continuous learning 3. Flexible resource allocation 4. Information management 5. Iterative business improvement processes 6. Talent management 7. Open physical and virtual environment 8. Partnerships and networking 9. Performance centric 10. Technology, systems and tools
26
Georges River Council // Workforce Management Plan 2020/21
Our workforce strategy 1. Capability mobility
Implement temporary, planned mobility of targeted employees across functional business areas to build capability and develop a more experienced and engaged workforce.
2. Continuous learning
Regularly review the learning needs of our workforce and commit to upgrading their skills so that we can successfully adapt to the changing environment, increased demands and ever-expanding functionality of Council.
3. Flexible resource allocation
Proactively coordinate our human resources, systems and tools, to enable business continuity and real-time responses to changing circumstances.
4. Information management
Streamline and maintain complete and integrated data management to effectively fulfil our functions and store information in a safe and accessible way.
5. Iterative business improvement processes
Constantly strive to improve our processes and services in accordance with industry standards to achieve customer centricity, increased productivity and the capability embrace new developments or technologies.
6. Talent management
Persistently attract, recruit, hire and retain the most talented and superior employees available, regardless of age or diversity, and provide opportunities for continuous development.
7. Open physical and virtual environment
Create a fit-for-purpose environment that influences a positive workplace culture and supports work/life balance.
8. Partnerships and networking
Actively encourage internal and external stakeholder relationships to share knowledge and utilise skills to supplement expertise and accomplish mutual goals.
9. Performance centric
Motivate our workforce through feedback mechanisms, role clarity and a rewards and recognition program.
10. Technology, systems and tools
Identify opportunities to invest in new technologies or to upgrade, streamline and perfect our systems and tools.
27
How will we get there? Supporting our Workforce Plan Acknowledging that day-to-day Council operations are influenced by the highly politicised and regulated environment in which we work, changes are often beyond our control. In addition, local government in NSW faces contemporary challenges relating to its structure, ongoing financial sustainability and community relevance. Our workforce should be able to effectively respond to potential changes at a local and industry level. In response, additional social planning and strategy documents complement this Workforce Plan by incorporating identified community needs to address specific areas: • learning and development program • talent management strategy • work health and safety strategy. We developed these documents following extensive community consultation.
28
Georges River Council // Workforce Management Plan 2020/21
Learning and Development Program: The River Runs Deep Our vision is to create a learning culture that supports our mission, vision and values. The Ready, Set, Grow Program for 2018-2020 will promote an adaptive, digitally literate and customer- focused workforce where managers and leaders foster ongoing learning and continual improvement. This Program structures development programs and activities into six streams. The programs to manage compliance and ongoing training will aim to reduce non-compliance instances, reduce accidents and injuries, and sustain a safe, healthy and productive work environment. Our goal is to create a culture of continuous learning through developing a dynamic workforce with the tools and capabilities required to respond to rapid change.
The program expands learning beyond the traditional classroom by focusing: • 70% of learning towards on-the-job training •
20% of learning via coaching and mentoring relationships
•
10% of learning by formal training courses, long term education programs, conferences and seminars.
This approach relies on the support of leaders throughout the organisation to free up their talent to provide and share their skills with others. This will improve learning experiences and build deeper cross- unit collaboration, which is a priority under our Performance Excellence Program. The program’s success will be measured through relevant metrics around cross-functional project initiatives, successful internal secondment and promotion movements, successful skill development of staff and feedback through leadership and performance reviews. We will continually review our learning and development suite based on the annual workforce training needs
analysis to ensure relevancy and quality. This includes investigations into relevant programs that directly link to nationally-accredited and government-funded training programs. Our leadership drives our culture. Great leadership is having the courage to make difficult decisions that benefit the whole community and the skills to engage our teams in providing quality service. Sustainable leadership is about engaging and inspiring leaders to develop, contribute and perform at an optimum level across all layers of the organisation. Leadership Development at Council focuses on emotional intelligence, technical and people skills to help managers motivate and develop staff, model and promote positive leadership behaviour and improve talent retention rates. Our goal is to create a thriving organisation driven by leaders who inspire and lead staff and teams to achieve our operational and strategic goals that go to providing quality outcomes for our community.
29
Work Health and Safety Strategic Plan We are committed to a safetyfirst approach by providing and maintaining a safe and healthy workplace for staff, contractors and visitors. Our Work Health and Safety (WHS) Strategic Plan aims to achieve high standards of health, safety and risk management in all operations by: •
taking a systematic approach to safety
•
reducing and managing WHS risks
•
building a robust safety culture
•
developing innovative consultation platforms
•
measuring safety performance.
The Strategy also aims to exceed the requirements of the Australian Work Health and Safety Strategy 20122022 which details a 10-year national framework to improve workplace health and safety. It sets out four outcomes to be achieved by 2022: •
reduced incidence of work-related death, injury and illness
•
reduced exposure to hazards and risks
•
improved hazard controls
•
an improved work health and safety infrastructure.
Our Strategy will continuously grow our safety culture, focus on employee health and wellbeing, and apply best practice strategies in workplace health, safety and risk management to maintain sound safety and risk management practices that protect the community and service agency staff.
30
Georges River Council // Workforce Management Plan 2020/21
Embracing opportunities Despite our challenges, we recognise a number of opportunities that may assist in developing our sustainable workforce. Using new technologies can increase efficiencies, streamline processes and facilitate information exchange. Identifying opportunities to review and install systems upgrades where appropriate will allow us to remain modern and relevant as both an employer and as a service provider. Through annual performance reviews, we will continue to understand the capacity of our staff and identify opportunities to create our own professionals to address skills shortages. Combining this approach with our Learning and Development Program will equip employees with the newest information and principles for best practice. Continuous business improvement ensures service delivery meets the needs of internal and external stakeholders and allows us to mobilise resources in ways that maximise efficiencies, reduce administrative burden and ultimately position Council services as essential to the lifestyle of the local community. To effectively embrace opportunities as they become apparent, this Plan will be reviewed and adjusted annually to create a workforce that is relevant to the present and ready for the future.
Implementation, monitoring and review Measuring success
•
Learning and development: Audit the number of training modules circulated against staff participation for future comparison.
Workforce Plan We will measure our performance against this Plan every year by reviewing the following factors:
•
Human resources: Measure and compare key performance indicators relating to human resources such as position vacancies, staff turnover, new recruits between review cycles (one year).
•
Workforce succession: Assess the number of internal/external secondment, transfer and promotions within the review period.
•
Implementation: Measure the number of strategies in this document that have been implemented by the beginning of the next review cycle.
•
Streamlined internal processes: Measure time and cost savings of streamlined internal processes in conjunction with customer feedback including complaint and end user experience of new processes.
•
Employee engagement, organisational culture and satisfaction with leadership: Collect and analyse data on these measures via the staff survey and compare to previous survey results.
31
Workforce Management Action Plan Goal 1
2
32
Capability mobility
Continuous learning
Objective
Priority
Action
Timeline
Progress
Implement temporary, planned mobility of employees across business areas to build capability and develop a more experienced and engaged workforce that responds to the challenges of a changing industrial landscape, the shifting needs of our community, and Council’s directions.
2
Establish a secondment program for employees to work in higher-level or new roles and to address skills gaps and skills shortages
2018/2019
Completed
1
Work with other divisions to anticipate future challenges and engage with all stakeholders for all workplace change from their inception through formal surveys with leadership team and alignment with operational plan outcomes.
2018/2019
Completed
1
Develop and deliver The River Runs Deep.
2018/2019
Completed
2
Include The Captains Collective as part of the learning and development plan to provide opportunities for the development of leadership teams.
2018/2019
Completed
1
Deliver a whole-oforganisation conference focused on values and compliance
2018/2019
Completed
2
Create opportunities and career paths to retain technical experts through mapping career paths vertically and horizontally and implementing project opportunities.
2018/2021
Completed
3
Explore opportunities to cultivate our professionals through support for tertiary qualifications under our study assistance program.
2018/2019
Completed
Develop a dynamic workforce with the required tools and capabilities required to respond to rapid change
Georges River Council // Workforce Management Plan 2020/21
Goal 3
4
5
Flexible resource allocation
Information management
Iterative business improvement processes
Objective
Priority
Action
Timeline
Progress
Proactively predict and mobilise resources to address changing circumstances to enable real time responses and business continuity
2
Investigate employment arrangements to optimise workforce flexibility and responsiveness through further use of technology.
2020/2021
In progress
2
Embed, where appropriate, contemporary and fitfor-purpose workforce scheduling models.
2020/2021
In progress
2
Review and update People and Culture policies and procedures including harmonisation of forms and templates
2018/2019
Completed
1
Implement a new Human Resource Information System (HRIS).
2018/2020
In progress
3
Implement a project management system for accurate progress reporting on People and Culture projects.
2018/2019
Completed
2
Assess leadership needs in relation to reporting and data analysis and streamline report production.
2018/2019
Completed
1
Ensure internal communications are open, frequent, targeted and multidirectional to share understanding and harness employee commitment.
2018/2019
Completed
1
undertake service delivery review of key Council functions.
2018/2019
Completed
1
Regularly review our systems, policies, processes and procedures to identify opportunities for improvement.
2018/2019
Completed
1
Encourage a culture that embraces feedback for business improvements to enhance flexibility and agility of operations.
2018/2020
In progress
Streamline and integrate our information management ensuring we collect the information we require, store information safely and intuitively; and share information to create mutual understanding.
Engage in continual review of our systems, processes and procedures to realise opportunities for improvement.
33
Goal 6
34
Talent management
Objective
Priority
Action
Timeline
Progress
Attract and retain the right people who have the right mix of skills and experience to fulfil Council’s functions.
3
Develop a fit-for-purpose apprenticeships and traineeships program.
2018/19
Completed
2
Investigate ways to expand our use of social media and other technologies to promote Council as an attractive employer.
2019/20
Completed
1
Develop a diversity and inclusion program that incorporates: CALD employee plan, workplace accessibility plan, equal opportunity plan, diversity inclusion action plan and mature age employee plan.
2019/20
Completed
2
Establish a talent management program that identifies talent gap analysis aligned with a succession planning strategy, retention strategy and leadership growth program.
2020/21
In progress
2
Conduct exit interviews with employees to gain insight into their experience of Council and address recurring themes.
2018/19
Completed
1
Provide a human resources presence on leadership forums to factor people matters into all decisions and promote human resources as a trusted, centralised source of advice and reference point on people- related matters.
2018/19
Completed
2
Streamline our recruitment processes for easier candidate selection and onboarding.
2019/20
Completed
Georges River Council // Workforce Management Plan 2020/21
Goal 7
8
Open physical and virtual environments
Partnerships and networking
Objective
Priority
Action
Timeline
Progress
Create a fit for purpose workplace environment that assists to develop a positive workplace culture and allows flexibility to support work/life balance.
1
Actively support a workplace culture that reflects our values by establishing and delivering an organisational culture program and wellbeing and belonging program that enables staff to achieve their potential.
2019/20
Completed
1
Continue to conduct employee satisfaction surveys.
2018/19
Completed
2
Co-locate and update workspaces with collaboration ‘break-out’ areas as part of Project Fusion.
2018/19
Completed
3
Enhance the flexible nature of our workplace to alleviate commuting pressures on people and their work/life balance.
2020/21
In progress
1
Build stable and cooperative relationships with employees that foster trust and minimise conflict by communicating effectively across the whole organisation.
2019/2020
Completed
2
Increase opportunities to build professional relationships by promoting cross-divisional projects and investigate creative ways to share knowledge and expertise and generate opportunities for crosscollaboration.
2019/2020
Completed
2
Develop sustainable partnerships that support operational outcomes – for example, by facilitating opportunities for joint procurement of technologies or services to minimise costs for council.
2020/2021
In progress
Actively encourage the development of relationships with both internal and external stakeholders, to share knowledge and utilise skills to supplement each other’s expertise and accomplish mutual goals.
35
36
Georges River Council // Digital Resource Management Plan 2020/21
Digital Resource Management Plan 2020/21
37
What is the Digital Resource Management Plan? A focus on our digital resources This Digital Resource Management Plan demonstrates Council’s commitment to utilising the best digital framework possible to enable responsive and timely services and information. It is one of four components of Council’s Resourcing Strategy, 2019/2020. The Resourcing Strategy articulates how Council’s finances, workforce, infrastructure and technology will support the implementation of our Delivery Program 2018/19 2020/21. The Delivery Program works towards meeting the aspirations and expectations expressed in the Community Strategic Plan 2018-2028 for the Georges River Local Government Area (LGA). Council’s digital infrastructure is a critical enabler that supports the whole of our operations. It facilitates the delivery of all services to our community and customers. Internally, it also ensures our workforce, governance, Councillor and corporate support functions run smoothly. We have identified that our digital assets and resources are a key area to consider strategically for both our current operations and when planning for the future. This Digital Resource Management Plan defines our digital starting point, aim and the roadmap by which
38
Council will leverage information and digital technology to transform the nature of services to our community and customers to deliver on Community Strategic Plan outcomes and targets. Our digital assets and resources are integrated into all parts of Council and throughout our Local Government Area. It is important to identify these components and ensure that systems are performing to produce maximum benefit for our community and organisation. Its implementation up until 2022 will support digital transformation and innovation for both organisation and the community we serve. We aim to be a leading Council, demonstrating best practice for digital asset resource delivery and management. This Strategy has been built with the considerations for the future including: •
Expectations and usage
•
Governance
•
Rapid change and obsolescence
•
Funding and staffing
•
Asset management
•
Location flexibility
•
Environmental and market influences.
Georges River Council // Digital Resource Management Plan 2020/21
Key themes of Council’s Digital Resource Management Plan Our Aim:
Our Strategic Objectives
To strengthen Council’s reputation and maintain community confidence by delivering secure, efficient, easy to use services.
Four strategic objectives underpin this Plan which drives our digital priorities and subsequent actions.
For our community, this means greater flexibility and certainty in dealing with Council and they are receiving the service they expect from Council.
1. Enable Committed Governance – Keeping our Information Safe Proactively commit to outcomes and actions that will build a sustainable and resilient Council. We will: • Continue to adapt information security governance against an everchanging threat landscape • Support business sustainability and resilience • Proactively manage risks • Commit to responsible sourcing and asset management.
2. Empower Digital Government – Improving the ways we interact Deliver digital and automated services enabling a mobile and flexible Council. We will: • Provide digital first user centric services • Provide technology to support a flexible workforce and make services available anywhere, anytime on any device to staff so they can better service our community and customers • Enable process automation and artificial intelligence.
3. Undertake Continuous Improvement Culture - Exploring and
adapting to new technologies Create a move to improve culture by continuous review and improvement of processes and digital assets, systems and resources to deliver increased productivity, innovation and customer satisfaction. We will: • Drive a digitally skilled and capable workforce • Support a culture of continuous improvement and digital transformation • Cultivate strategic partnerships with core vendors • Enable innovation across Council function and services.
4. Embed Business Analytics – Creating meaningful performance data Build deliver and support tools and reporting capabilities to enable an open and transparent reporting framework facilitating a data driven, transparent and accountable Council. We will: • Build and maintain automated business intelligence tools and dashboards • Build and maintain an open data exchange • Ensure data integrity through formalising a data policy and enforcing compliance 39
Our Digital Resource Management Plan on a page To strengthen Council’s reputation and maintain community confidence by delivering secure, efficient, customer centric services.
40
Enable committed governance
Empower digital government
Keeping our information safe
Improving ways to interact with Council
Georges River Council // Digital Resource Management Plan 2020/21
Undertake continuous improvement and innovation Exploring and adapting to new technologies
Embed business analytics Creating meaningful performance data
Where are we now? Organisational context In planning for the future, it is important to understand where we have come from and set the baseline of the current situation. During the harmonisation of the two former councils we committed to a transition plan – the ICT Strategic Plan 2016-2018 which ensured that within 30 months of proclamation all technical infrastructure and systems would be consolidated. An information and communications technology (now digital) strategic approach drove this Plan and the associated program.
We took a progressive, incremental approach which was promoted by the Department of Premier and Cabinet at that time. The foundations of Council’s digital architecture have now been established. We have finalised the first three steps in our roadmap to one Council transformation. This Digital Resource Management Plan builds upon the foundations of the ICT Strategic Plan 2016-2018. It sets our strategic digital technology objectives and will drive our new future state of technology.
Figure 1: Our digital transformation journey
2016
Setting the Foundation and Productivity Improvements
2019
Continuous improvements and migration to digital services
2017
Simplifying IT complexity and joining up services
2018
Joining up Services and enabling new cloud service and support models
beyond
Transformation and Innovation
41
Working together This Plan was developed in consultation with staff from across Council through a series of workshops. These workshops gathered insights into staff needs across two categories: business and systems improvements and tools of the trade. The results indicated our staff considers the following to be important in undertaking their jobs and improving the way they work. •
Devices for a flexible and mobile workforce
•
Mobile applications
•
Improved website functionality
•
Connectivity and easy access to Wi-Fi
•
More accessible hardware, for example larger printers at childcare centres
•
Communication tools
•
System support
•
Digital literacy and system training
•
Ease of access to information across all systems.
This feedback has informed our Strategic Objectives, Priorities and subsequent Action Plan.
42
Georges River Council // Digital Resource Management Plan 2020/21
Snapshot of Current Situation
Cyber Security Cyber Security Cyber Security 12,999,645 Cyber Security
Information Management Information Management Information Management 88,362 Information Management
88,362 Correspondence registered 88,362 Correspondence registered 88,362 Correspondence registered 746 registered Correspondence 746 Information requests 746processed Information requests processed Information746 requests processed Information requests processed
382 Training sessions facilitated 382 382 Training sessions facilitated to Training enable effective use of sessions facilitated Training sessions facilitated to enable effective use of of Digital Resources to enable effective use to enable effective use Digital Resources Digital Resourcesof Digital Resources
Sustainability Sustainability Sustainability 93kgs Sustainability
Digital Assets and resources Digital Assets and resources Digital Assets and resources 1,841 Digital Assets and resources
Data Integrity Data Integrity Data Integrity 1,435 Data Integrity
12,999,645 Threats prevented/blocked 12,999,645 12,999,645 Threats prevented/blocked Threats prevented/blocked Threats prevented/blocked
Printing93kgs consumables 93kgs 93kgs Printing consumables Printing consumables 910kgs Printing consumables 910kgs eWaste recycling of 91 devices 910kgs 910kgs eWaste recycling of 91 devices eWaste recycling of 91 devices 15,500kgs eWaste recycling of 91 devices 15,500kgs Use of 100% recycled paper 15,500kgs UseUse of 100% recycled paper - 1193 reams of paper of15,500kgs 100% recycled paper Use1193 of 1193 100% recycled paper reams of paper reams of paper 16,500kgs 1193 reams of paper 16,500kgs Total waste diverted from landfill 16,500kgs 16,500kgs Total waste diverted from landfill Total waste diverted from landfill Total waste diverted from landfill
System availability System availability System availability 99.97% System availability
99.97% Availability of Digital 99.97% 99.97% Availability of Digital Infrastructure performance Availability of Digital Availability Digital Infrastructure performance Infrastructureofperformance Infrastructure performance
1,841 Hardware and software applications 1,841 1,841 Hardware and software applications managed and maintained Hardware and software applications Hardware and software applications managed and maintained managed and maintained 877 and tasks managed maintained 877 tasks Technology Infrastructure 877 tasks 877Infrastructure tasks Technology Maintenance Technology Infrastructure Technology Infrastructure Maintenance Maintenance Maintenance
Digital Resource Digital Resource Digital Resource Management Plan progress Digital Resource Management Plan progress Management Plan progress 19/20 Management Plan progress
Programme on19/20 track to meet 80% 19/20 19/20 Programme onwith track 80% compliance 14to ofmeet themeet 25 Programme on track to 80% Programme on track meet compliance with 14 to ofcompleted the 2580% Digital Resource projects compliance with 14 of the 25 . compliance with 14 ofcompleted the 25 . . Digital Resource projects Digital Resource projects completed Digital Resource projects completed.
Training Training Training 382 Training
1,435 Properties created 1,435 1,435 Properties created Properties created 1,631created Properties New1,631 addresses 1,631 1,631 New addresses New addresses 2,367 New addresses 2,367 Changes of address 2,367 2,367 Changes of address Changes of address 651,374 Changes of address 651,374 Property attributes 651,374 651,374 Property attributes Property attributes Property attributes
Move to Improve Move to to Improve Move Improve Move82% to Improve
82% of agreed initiatives 82% were 82% of agreed initiatives were implemented of agreed initiatives were of agreed initiatives implemented implementedwere implemented 43
Where are we going? Our current and future state It is important that Council continues to deliver efficient technology to our staff to ensure appropriate and timely services are provided to the community. This includes mobile and flexible digital services as well as troubleshooting and training. We are continually undertaking projects that aim to improve both internal Council and community processes. With technology use continuously expanding, society now significantly relies on personal devices such as smart phones, laptops and tablets to carry out tasks and access information. Council believes we should be supporting this shift in the norm with a focus on delivering reliable, efficient and adaptable technology.
This means ensuring that Council services are mobile, not only for the community but for Council staff, so that they enjoy a flexible working environment and work-life balance. We want to make sure that our actions deliver a relevant and viable digital infrastructure framework which will pave the way for future digital advancements, benefiting our community, customers and staff.
Figure 2: Digital technology current and future state
44
Now
Future
STATE OF DIGITAL TECHNOLOGY JUNE 2019
STATE OF DIGITAL TECHNOLOGY JUNE 2022
Established technology governance framework
>>>
Technology framework responsive to legislative framework
One Council protected technology network, connected across location
>>>
One Council protected and resilient technology network connected with the world
Established Hybrid Cloud Enterprise Architecture function
>>>
ReceptiveCloud offering and enterprise hybrid Cloud architecture framework
Mobility and productivity challenges
>>>
Availability of services anywhere, anytime on any device to customers and staff
Established continuous improvement focus across Council functions and services
>>>
Innovation enabled across Council functions and services
Established vendor management
>>>
Strategic partnerships with core vendors and effective Service & Vendor Management Framework
Established performance reporting to help drive accountability
>>>
A data driven, transparent and accountable organisation enabled by digital technology
Georges River Council // Digital Resource Management Plan 2020/21
45
Emerging global trends in technology In planning for the future Council has considered what is driving transformation, change and innovation in the government sector across Australia, as well as global trends and emerging technologies. We need to remain informed of these emerging or evolving global trends and while not all will affect us directly or immediately, strategic planning should manage the expectations of these future influences. Leading worldwide information communication technology research agency Gartner publish their findings annually about technology trends and influences that are intended to assist and guide high level strategic thinking by organisations and assist in planning for the future. The top 10 Gartner strategic technology trends for 2019 are outlined below. 1. Autonomous things Autonomous things are robotics, vehicles, drones, appliances or agents that use artificial intelligence to interact with their environments. They can operate with various levels of automation, from semi-automation which requires human assistance to fully automated objects. Gartner predicts that as autonomous things rapidly become more available, there will be a shift from stand-alone intelligent things to a swarm of collaborative intelligent things, with multiple devices working together, with or without human input. As an example, if a drone surveyed one of Council’s parks and determined it was ready for mowing in a semi-automation process this would log a service request and add the work to the works schedule. In a fully autonomous space, the drone would dispatch an autonomous mower or tracker to mow the grass. Council will investigate and explore the possibilities of autonomous capabilities across the organisation, keeping in mind the concerns around the capacity of artificial intelligence to make decisions that a human brain is capable of computing. 2. Augmented analytics Across Council there are increasing amounts of data from various sources and systems which need to be prepared, analysed and transformed into conclusions which shape the way we manage our business.
46
Resourcing, skillsets and capability gaps can mean that key data insights are not readily available across the organisation. Creating these business insights can be a manual process and currently relies on a person preparing the data to create these conclusions from the information available to them. The person preparing the data has the potential to miss key business insights or to unconsciously create a bias when reporting on this data. By exploring augmented analytics there is the potential for Council to use automated algorithms to transform how Council generates analytical insights. This would identify hidden patterns while removing personal bias. Changing the way Council manages data would ensure accurate and timely data insights will be more broadly available across the organisation to inform our decisions. 3. Artificial Intelligence (AI) driven development The market is rapidly shifting from an approach in which professional data scientists must partner with application developers to create AI-enhanced solutions. This provides the developer with an ecosystem of AI algorithms and models, as well as development tools tailored to integrating AI capabilities and models into a solution. For Council this could herald the creation of Georgie, our helpful virtual assistant that could respond to general enquiries including planning related queries. This assistant would be available round the clock to provide better outcomes and service to our community. AI bots could also be developed to take on the grunt work for very manual processes. An example in the registration of digital records, a bot could be developed to automate this registration process and remove manual handling, releasing staff to manage more complex task and enquiries. 4. Digital twins A digital twin is a digital representation that mirrors a real-life object, process or system. Digital twins integrate internet of things, artificial intelligence, machine learning and software analytics with spatial network graphs to create living digital simulation models that update and change as their physical counterparts change. A digital twin continuously learns and updates itself from multiple sources to represent its near real-time status, working condition or position. Creation of a Digital twin for Council would enable city planners to better plan for future needs. Data on energy
Georges River Council // Digital Resource Management Plan 2020/21
consumption could be used to influence planning decisions and meet environmental targets. Modelling for traffic light phases or air flow around proposed buildings could influence more efficient options. We could also use this technology to improve our digital citizen experience to personalise and transform how Council delivers services. 5. Empowered Edge (IoT) The edge refers to endpoint devices used by people or embedded in the world around us. Edge computing describes a computing framework in which information processing, content collection and delivery, are placed closer to the endpoints. It tries to keep the data processing local, with the goal being to reduce traffic and delays. Gartner expects that over the next five years, specialised AI chips, along with greater processing power, storage and other advanced capabilities, will be added to a wider array of edge devices. The diversity of this internet of things world and the long-life cycles of assets such as industrial systems will create significant management challenges for Council. Longer term, as 5G matures, the expanding edge computing environment will have more robust communication back to centralised services. Council must be ready to respond and enable community expectation on core digital assets, such as closed circuit television (CCTV), public WiFi,- sensor technology and electric vehicle charging stations. The explosion of end point devices will also mean we need to be ready to handle not only the devices but also the data that will need to be centrally managed and turned into information to support Council’s effective decision making. 6. Immersive technologies Conversational platforms are changing the way in which people interact with the digital world. Virtual reality, augmented reality and mixed reality are changing the way in which people perceive the digital world. This combined shift in perception and interaction models leads to the future immersive user experience. Gartner suggests that we will begin to shift from thinking about individual devices and fragmented user interfaces to multichannel and multimodal experiences. The multimodal experience will connect people with the digital world across hundreds of edge devices that surround them, including traditional computing devices, wearables, automobiles, environmental sensors and appliances. The multi-channel experience will use all
human senses as well as advanced computer senses (such as heat, humidity and radar) across these multimodal devices. This multi-experience environment will mean that the environment we are in becomes the computer rather than our individual devices. For Council this means a shift in how we engage with our community and partner agencies. It means we can expand our services for our community as they need. Expanding our capability to provide real time transactional service will mean people will receive improved customer service, information and dialogue from Council. 7. Blockchain Blockchain, a type of distributed ledger, promises to reshape industries by enabling trust, providing transparency and reducing friction across business ecosystems potentially lowering costs, reducing transaction settlement times and improving cash flow. Today, trust is placed in banks, clearinghouses, governments and many other institutions as central authorities with the “single version of the truth” maintained securely in their databases. Council will need to be open to collaborate on supporting block chain technology to enable Local, State and Federal Government initiatives. 8. Smart Spaces A smart space is a physical or digital environment in which humans and technology-enabled systems interact in increasingly open, connected, coordinated and intelligent ecosystems. Gartner states that there has been a trend merging elements such as smart cities, digital workplaces, smart homes and connected factories. They believe the market is entering a period of the accelerated delivery of robust smart spaces with technology becoming an integral part of our daily lives, whether as employees, customers, consumers, community members or citizens. Council has already received two grants for creating smart spaces under the Australian Government’s Smart Cities and Suburbs Program. Through these spaces we aim to create smart social spaces that connect people physically and provide them with free WiFi and access to technology solutions in the public realm. These spaces provide an opportunity for Council to monitor user frequency and needs so that we can better service them. We are also able to streamline the maintenance scheduling of this infrastructure. We will continue to deliver and build on these projects in line with the Georges River
47
2050 Strategy as well as individual place making and innovation strategies currently being developed. 9. Digital ethics and privacy The importance of organisational ethics in dealing with people’s personal information is critical for Council’s relationships and reputation both with our community and beyond. Council collects, stores and utilises a plethora of information which we ensure is not circulated inside or outside our organisation. Gartner suggests that people are becoming more concerned about how their personal information is being used by organisations in both the public and private sector and that the backlash will only increase for organisations that are not proactively addressing these concerns. An organisation’s position on privacy must be driven by its broader position on ethics and trust. Gartner suggests a shift from the concept of privacy to ethics will move organisations from a position of compliance to doing the right thing and more closely meeting people’s expectations. This will become increasingly important for Council to respond to as people’s and our own expectations shift. 10. Quantum computing Quantum computing (QC) is a type of non-classical computing that operates on the quantum state of subatomic particles (for example, electrons and ions) that represent information as elements denoted as quantum bits (qubits). The parallel execution and exponential scalability of quantum computers means they excel with problems too complex for a traditional approach or where traditional algorithms would take too long to find a solution. Industries such as automotive, financial, insurance, pharmaceuticals, military and research organisations have the most to gain from the advancements in quantum computing. Council will learn about and monitor quantum computing technology as it matures through 2022 and look to implement from 2023. We will increase our understanding of how it can apply to our operations so that we are in a position to benefit from QC.
48
Georges River Council // Digital Resource Management Plan 2020/21
49
How will we get there? Our guiding principles We have developed clear principles to guide the way that our digital resources are implemented and managed. These principles underpin and frame our decision making on digital projects. Customer Centric We will be a customer centric delivering system availability, capacity and quality of service. Financially responsible We will source and assess technology and software delivering excellent return on investment and business sustainability and look for opportunities to leverage for profitability.
Sustainable, resilient and compliant We will be committed to good governance by driving a sustainable, resilient and compliant organisation. Business Intelligence We will develop and commit to utilise business reporting that facilitates open, transparent and accountable decision making. Move to Improve We will support and deliver a continuous improvement and innovative culture.
Our priorities Strategic Objective 1
Priority
Enable Committed Governance
1.1 Continuously adapt Council’s information security framework against an ever-changing legislative compliance and threat landscape 1.2 Deliver sustainable, resilient systems and technical infrastructure to support our City 1.3 Leverage cost optimisation and enable proactive procurement of all Council digital assets
Empower Digital Government
2.1 Improve citizen engagement, communication and services 2.2 Continue to expand mobile technology and digital workplace program 2.3 Continue to invest and enhance Artificial Intelligence and automated solutions 2.4 Support interoperability with State and Federal Digital Government initiatives
3
Undertake Continuous Improvement and Innovation
3.1 Grow a digitally skilled and capable workforce 3.2 Continue to cultivate key strategic strategic and collaborative partnerships 3.3 Enable Council’s priority strategies 3.4 Continue iterative improvements in business process, staff and operational efficiencies through the Move to Improve Program
4
Embed Business Analytics
4.1 Embed business reporting that facilitates an open, transparent and accountable organisation 4.2 Establish an open data exchange for our community 4.3 Ensure governance framework exists to maintain data integrity for Council data.
The actions Council will undertake to support these objectives and priorities are outlined in the detailed Action Plan in Section 5. The Digital Resource Management Plan will evolve as Council continues its journey from transition to transformation and innovation. 50
Georges River Council // Digital Resource Management Plan 2020/21
Challenges and Risks Recognising the challenges that impact Council’s ability to deliver and maintain digital assets and resources is important when planning for the future, this gives us an opportunity to build a robust Plan. The priorities and actions developed under each Strategic Objective in our Action Plan aim to mitigate these challenges and risks. 1. Resources In order to deliver the desired outcomes, adequate resources need to be assigned. With competing priorities and expectations, people, budget and time resourcing is the biggest challenge in the digital environment. While Council is aiming to increase the use of autonomous things, the systems and infrastructure still need human resources to build, support and maintain them. 2. Security With the increase of online services and cloud computing, maintaining privacy and security is a high priority to ensure the digital safety of Council, its customers and our community. The increase in cyber threats and changing legislation requires Council to remain vigilant to ensure electronic safety through compliance. 3. Change In improving and innovating digital assets and resources Council needs to ensure that good change management is employed so that we can focus on digital literacy of staff, customers and the community. We need to make sure that as the complexity of systems and technology increases it is responsive to both our organisation and community. 4. Reputation An increase in the use of social media and the online distribution of unreliable information creates reputational challenges for Council. Providing correct and real time information that can be disseminated widely is becoming increasingly important and challenging. Our users may create filter bubbles for social media, website content and other digital services in which case they will only follow or search for the content they choose and may miss the whole picture. 5. e-Inclusion
One of the challenges in an increasingly digital world is creating e-inclusion. It is important to ensure that users who do not have the same access to these digital services or required devices are not disadvantaged. Council also recognises that not everyone will have the same interest or access and that innovation does not mean leaving these people behind, but rather finding inclusive solutions and creating a balance between people and a system focus. 6. Capacity Gaps Council recognises capacity gaps within the organisation is another barrier towards our digital evolution that needs to be mitigated. Council’s workforce needs to be digitally literate and have access to the systems and tools that they need. We have staff of varying capability levels and need to ensure we support and up-skill our teams to embrace new technologies and devices that will benefit their ability to work smarter, not harder. Critical to our success is that we attract the right skillset to ensure digital assets and resources can be delivered, supported and maintained in house rather than relying on third parties or external consultants. This also impacts resourcing in terms of people, budgets and time. A mixed digital literacy creates capacity gaps in levels of training required in the introduction of new systems and tools. 7. Autonomous Things and Decision Making Although the future of autonomous things is exciting, there are still numerous challenges and risks that need to be considered including societal acceptance. While many people will be happy to move to automated information and services, many may still trust human interaction and to be able to speak to a person who they feel will understand their needs. At this time, artificial intelligence does not yet have the same capability for decision-making and therefore cannot take into consideration unique circumstances and situations. 8.Sustainability and Resilience Despite technological advances in e-government, the digital world still caries challenges and risks to the sustainability and resilience of an organisation and community. Increased use of technology has social, economic and environmental effects that need to be considered as we progress on our digital journey.
51
Implementation, monitoring and review We have developed a comprehensive Action Plan to ensure we meet our strategic objectives for effective digital resource management. This Plan will help us to make sure the actions are undertaken at the right time to build on our digital capability and respond to organisational and community requirements. Council’s Chief Information Officer (CIO) is responsible for the implementation, monitoring and review of this Plan. Each action will be implemented by the CIO in collaboration with relevant teams across the organisation. We will review this Plan and our success in meeting our strategic objectives in 2022 against the following targets. Our progress will be reviewed annually.
Strategic Objective 1
3
Enable Committed Governance
2022 Target - - -
100% compliance with regulatory requirements 99.5 % availability of digital infrastructure performance. (Including CCTV and public WiFi network) 80% digital assets replaced in line with Digital Resource Asset Plan
Empower Digital Government
- - - -
100% of agreed key services digitally transformed 90% of staff services available on any device, anytime 90% of agreed automation and artificial intelligence initiatives implemented 80% compliance with State and Federal interoperability requirements
Undertake continuous improvement and innovation
-
100% of new staff trained in the use of digital resources. 100% of digital resource courses available for refresher training 80% of budgeted priority strategy projects enabled (Georges Rive 2050, Innovation and Smart Cities) 80% of Move to Improve endorsed initiatives implemented 80% of budgeted Digital Resource Management Plan implemented
- - -
4
Embed business analytics
- - -
52
90% of real time data analytics dashboards for operational plan KPIs established to support accountability 100% compliance to Government Open Data Exchange Standards 90% compliance with Data Integrity measure
Georges River Council // Digital Resource Management Plan 2020/21
Digital Resource Management Action Plan This Action Plan was informed by extensive organisational engagement and has strong synergies with the Community Strategic Plan (CSP) 2018-2028, specifically the goal directly relates to the CSP. Our Action Plan focuses on the priorities and actions linked to each Strategic Objective and articulates timeframes for completion. Goal 1
Digital Resource Management
Objective
Priority
Action
Timeline
Progress
Enable Committed Governance
Continuously adapt Council's information security governance against an ever changing legislative compliance and threat landscape
Comply with changes in legislation and government policy
19/20
In Progress
Educate staff, customers and community to increase awareness of cyber security
19/20
In Progress
Implement Annual Audit agreed recommendations
19/20
In Progress
Deliver sustainable, resilient systems and technical infrastructure to support our City
Conduct a review of Council's enterprise architecture
20/21
Not commenced
Review and communicate Council's Digital Resource portfolio and software catalogue
20/21
Not commenced
Establish Technical Infrastructure resilience
19/20
Completed
2
3 4 5
Digital Resource Management
Enable Committed Governance
6 7
Digital Resource Management
Enable Committed Governance
Leverage cost optimisation and enable proactive sourcing of all Council assets
Forward procurement plans for digital resources
19/20
In Progress
Undertake a cost optimisation review
20/21
In Progress
Demonstrate a culture of continuous improvement 10 and effective governance
Empower Digital Government
Improve citizen engagement and services
Establish and implement Council's Digital Communication Strategy
21/22
In Progress
Continuous Review and improvement to Council's website presence ensuring relevance, performance and responsiveness.
19/20
In Progress
8 9
53
Goal
Objective
Priority
Action
Timeline
Progress
Empower Digital Government
Continue to expand mobile technology and digital workplace program
Establish digital workplace to enable work anywhere, anytime on any device
20/21
In Progress
Establish a common digital signage framework to enable effective citizen engagement
19/20
Completed
Improve citizen engagement and services
Enable Customer Request Management
19/20
In Progress
Enable Digital transformation for key services
21/22
In Progress
Establish Electronic Lodgement
20/21
Not Commenced
Enable interoperability of State and Federal digital government initiatives
20/21
In Progress
Automate invoice processing and payment
21/22
Not Commence
Automate incoming receipting of customer documents
20/21
In Progress
Enable digital signatures
20/21
Not Commence
20
Automate Data Integrity
20/21
In Progress
21
Streamline Application Management processing
21/22
In Progress
Develop digital skills literacy program
21/22
In Progress
Review eLearning platform
20/21
Not Commenced
Develop effective, diverse and accessible digital resource training program
21/22
In Progress
Establish roadmaps for key digital resources
21/22
In Progress
11 Digital Resource Management 12
13 Demonstrate a culture of continuous 14 improvement and effective governance 15
Empower Digital Government
16
17 Demonstrate a culture of continuous 18 improvement and effective governance 19
54
Empower Digital Government
22 Demonstrate a culture of continuous 23 improvement and effective governance 24
Undertake continuous Improvement and Innovation
25 Digital Resource Management
Undertake continuous Improvement and Innovation
Continue to invest and enhance Artificial Intelligence and automated solutions
Grow a digitally skilled and capable workforce
Continue to cultivate key strategic partnerships
Georges River Council // Digital Resource Management Plan 2020/21
Goal 26 Demonstrate a culture of continuous improvement and effective governance
Objective
Priority
Action
Timeline
Progress
Undertake continuous Improvement and Innovation
Enable Council’s strategic and priority plans (e.g. Georges River 2050, Innovation and Smart cities strategies)
Review Digital Resource Management Plan to ensure that it supports the Innovation Strategy and aligns with Georges River 2050 Leading for Change
21/22
Not Commenced
Review Digital Resource Management Plan to ensure that it supports Council’s priority strategies and plans e.g. Cultural, Innovation and Smart City Strategies
21/22
In Progress
27
28 Digital Resource Management
Undertake continuous Improvement and Innovation
Continue iterative improvements in business process, staff and operational efficiencies through the Move to Improve Program
Facilitate Move to Improve Program with all management groups
21/22
In Progress
28 Demonstrate a culture of continuous improvement and effective 30 governance
Embed Business Analytics
Embed business reporting that facilitates an open, transparent and accountable organisation
Establish operational real time reporting dashboards to support efficient services to our community
21/22
In Progress
Facilitate data sources to enable City dashboard for our community and customers
21/22
Not Commenced
31 Digital Resource Management
Embed Business Analytics
Ensure governance framework exists to maintain data integrity for Council data
Establish data integrity to ensure our community has up to date information
20/21
In Progress
32 Demonstrate a culture of 33 continuous improvement and effective governance
Embed Business Analytics
Enable an open data exchange for our Community
Formalise a City Data Policy
19/20
In Progress
Establish an open data exchange for our community
21/22
Not Commenced
55
56
Georges River Council // Asset Management Plan 2020/21
Asset Management Plan 2020/21
57
What is the Asset Management Plan? The Asset Management Plan sets out the broad framework for undertaking structured and coordinated management of Council’s infrastructure assets. It outlines key principles that underpin our approach to providing the assets that are essential to our community. The Strategy highlights the long-term funding challenges Council must address to meet the commitments outlined in the Community Strategic Plan and deliver the level of service desired by the community over the next 10 years.
Overview Georges River Council manages over $1.2 billion of infrastructure assets that provide essential services to our community. These assets include roads, buildings, footpaths, drainage, sporting facilities and recreational open space. The level of service delivered by these assets is largely determined by the way they are maintained and managed. The Asset Management Strategy guides the planning, construction, operation and maintenance of community infrastructure to meet the commitments outlined in the Community Strategic Plan. The Asset Management Strategy will continue to evolve as the strategic objectives of Council develop and change. The Strategy highlights the long term funding challenges Council must address to deliver the level of service desired by the community now, and in the future. Council will continue to improve on its asset management practices thereby demonstrating an ongoing commitment to the effective and responsible administration of public infrastructure.
Asset Planning & Reporting Council is committed to meeting the requirements of the NSW Integrated Planning and Reporting Framework. This document has been prepared in accordance with the IP&R guidelines. This is the second review of the Asset Management Strategy and Plan for Georges River Council and forms an integrated component of Council’s overall Resourcing Strategy.
58
Georges River Council // Asset Management Plan 2020/21
Asset Management Framework The Asset Management Framework consists of a number of components including an Asset Management Policy, Asset Management Strategy and Asset Management Plan. The Asset Management Policy and Strategy are provided in the Resourcing Strategy along with relevant sections of the Asset Management Plan. This allows the document to be presented in a way that facilitates understanding and engagement with the community.
Asset Management Policy Council’s Asset Management Policy guides the strategic management of Council’s assets. The Policy defines the Council’s vision and service delivery objectives for asset management in accordance with legislative requirements, community needs and affordability. The Asset Management Policy applies a corporate approach to asset management within all operational areas of Council. The infrastructure asset categories covered under the policy are considered critical to the council’s operations and include: •
Roads
•
Buildings
•
Stormwater Drainage
•
Open Space & Recreation
Key themes of Council’s Asset Management Plan The Asset Management Policy was adopted by council in 2016. The strategic objectives of the policy are as follows:
Asset Management Strategy
•
Ensuring that Council’s services and infrastructure are provided in a sustainable manner, with the appropriate levels of service to residents, visitors and the environment.
Georges River Council’s asset management strategy has been developed in the context of the following key questions:
•
Safeguarding Council assets including physical assets and employees by implementing appropriate asset management strategies and appropriate financial resources for those assets.
•
Creating an environment where all Council employees take an integral part in overall management of Council assets by creating and sustaining asset management awareness throughout the Council.
•
Ensuring resources and operational capabilities are identified and responsibility for asset management is allocated.
•
Demonstrating transparent and responsible asset management processes that align with best practice.
•
Meeting legislative requirements for asset management.
•
Where are we now? Our current asset management situation and current asset management practices?
•
Where do we want to be? - The desired future state and strategic outcomes
•
How will we get there? Strategies, actions and performance measures to bridge the gap between current and desired positions?
https://www.georgesriver.nsw.gov.au/Council/ Governance/Codes,-Policies-and-Registers
59
Where are we now? Our Assets 1 Stadium 10 boat ramps
Roads and Footpaths 394km roads 487km footpaths Asset Value = $693 million
281 parks and reserves 3 tidal pools 41 bushland reserves 117 playgrounds 2 golf courses 7 wi-fi hotspots
Stormwater 254km stormwater pipes 8229 stormwater pits 132 stormwater quality devices Asset Value = $150 million
Buildings and other structures 154 Buildings
18 operational buildings
(Civic centre and works depot, SES Facilities)
Open Space 473 hectares
15 tennis courts 28 netball courts 57 sporting Fields Synthetic Fields
2 full fields and 2 mini fields
Asset Value = $80 million
60
Georges River Council // Asset Management Plan 2020/21
5 libraries
6 childcare facilities 7 community halls and facilities
2 swimming pools/leisure centres and associated buildings 92 toilets, amenities and park facilities 19 other buildings
(sports stadiums, water treatment plant, etc.)
4 investment properties
Asset Value = $273 million
The following tables provide a snapshot of Council’s Asset portfolio in terms of quantity, condition and value.
Inventory Asset Class
Quantity
Asset Class
Quantity
Roads - Pavement
394 km
Parks & Reserves
281- (473Ha)
Roads - Kerb
785 km
Playgrounds
117
Roads – Traffic devices
15,977
Buildings
154
Roads - Carparks
103
Foreshore infrastructure
257
Roads - Footpath
487 km
Trees
26,800
Stormwater Drainage
254 km
Stormwater - Pollution Devices
132
Value Major Asset Class
Replacement Cost (CRC)
Depreciated Replacement Cost (WDV)
Depreciation Expense
Buildings
$257,129,000
$179,312,000
$4,463,000
Other Structures
$15,836,000
$9,442,000
$383,000
Roads
$589,246,000
$409,528,000
$6,033,000
Footpaths
$103,824,000
$65,522,000
$973,000
Stormwater Drainage
$149,530,000
$75,669,000
$1,196,000
Open Space & Recreation
$79,642,000
$51,868,000
$2,609,000
Total
$1,195,207,000
$791,341,000
$15,657,000
Asset class value as a percentage of total replacement cost 7% 7%
22% 22%
13% 13%
Buildings - $257M Buildings - $257M
9%
1% 1%
9%
Other Structures - $16M
Other Structures - $16M
Roads - $589M
Roads - $589M
Footpaths - $104M
Footpaths - $104M
Stormwater Drainage - $150M
Stormwater Drainage- -$80M $150M Open Space & Recreation
49%
Open Space & Recreation - $80M
49% 61
0% 0% 0% 0% 2% 0%
Very poor
Condition Asset Condition by Asset Class
Chart Title
Overall Condition
Open Space
Stormwater Drainage
Footpaths
Roads
105 448 451 892 744 119 759
Buildings 0%
20% Very Good
62
40% Good
Georges River Council // Asset Management Plan 2020/21
Fair
60% Poor
Very poor
80%
100%
2 2.00 2 4 2 1.00 2 5 2 3.00 2 (blank) 2 2.00 2 Grand Total 2 1.00 2 2 3.00 2 2 1.00 2 Pavement Condition Index 3 2.00 3 2% 1% 2 2.00 2 Roads are Council’s2.00 largest asset to manage, both in 2 2 asset quantity and asset value. An important measure 18% 2 1.00 2 18% of road assets is the Pavement Condition Index (PCI). 2 PCI is a rating of 2.00 2 The 1 to 5 using a standardised system Very Good 1 Pavement Management. 1.00 1 months for In the past 12 Good Council has undertaken 1 1.00 significant work 1to improve the Fair pavement management 1 1.00 process including 1 predictive modelling of long-term changes in PCI based on a Poor 3 1.00 3 variety of funding scenarios. Figure 2 provides the PCI Very poor 2 3.00 in 2016 and 2018. 2 profile for all road assets 1 1.00 1 61% 1.00of roads at each 2PCI level. As It 2shows the proportion demonstrated, a large are at 1 2.00proportion of the assets 1 the higher end of the PCI profile noting overall good 1 2.00 1 condition. The average PCI for the road network in 2016 2 2.00 2 was 1.69 and in 1.46 in 2018, this out performs Council’s 2 2 remains target PCI of 2.8 out1.00 of 5. While overall PCI 3 2.00 3 deteriorated favourable, individual data on cracking has 2 2 Additional which is an indicator2.00 of inadequate funding. pavement base testing 1 3.00is identified as a 1key action in the upcoming asset management program to 3 1.00 3 validate the concerns relating to pavement distress parameters. 1 2.00 1 3 3.00 3 2 1.00 2 Average2.00 condition - PCI 2 2 Whole network 2 5 2.00 2 Very poor 1.00 2 2 3 1.00 3 4 2 1.00 2 Poor 3 1.00 3 Annual_Do_nothing 1 3 1.00 1 Annual_4M Fair 2 2.00 2 Annual_4.5M 2 1.00 2 Annual_5M 2 2 1.00 2 Good Annual_PCI_2.83 1 1.00 1 Annual_Unlimited 3 1 3.00 3 Very good1.00 2 2 2 2.00 2 0 Figure 3 Predictive modelling 2 2018 1.00 2020 2022 2024 2 2026 2028 2030 of long-term changes in PCI 2 3.00 2 based on a variety of funding Year 2 2 2.00 scenarios. 3 3.00 3 2 2.00 2 1 1.00 1 Based on the current and projected network 2 1.00 2 status, Council should consider annual spending of $5.5M to maintain the network 2 1.00 2 within a PCI range of 2.5 to 2.8 over the next 3 10 years. 2.00 3
2549
PCI
2018 Pavement Condition
2 1.00 2 Without additional road renewal funding each year the predictive modelling suggests 1 1.00 1 that the network average pavement condition will fall below the community desired 4 2.00 4 service level of 2.8 in approximately 7 years. 1 2.00 1 2 1.00 2 2 2.00 2 2 2.00 2 2 1.00 2
63
Community Strategic Plan Council conducted a program of extensive community engagement to develop Georges River's first Community Strategic Plan (CSP). The Community Strategic Plan was adopted by Council on 25 June 2018. The Community Strategic Plan identifies the following six pillars that underpin our work for the community. 1. 2. 3. 4. 5. 6.
A protected environment and green open spaces Quality, well planned development Active and accessible places and spaces A diverse and productive economy A harmonious and proud community with strong social services and infrastructure Leadership and transparency
The Asset Management Strategy has been prepared in line with the six pillars outlined in the Community Strategic Plan. Council’s asset portfolio plays both a direct and an indirect role in achieving the strategic objectives of Council and supporting the service delivery needs of the community.
64
Georges River Council // Asset Management Plan 2020/21
The following table indicates how Council’s assets link to the key strategies and goals of the CSP. Pillar
Goal
Roads
Stormwater Drainage
Open Space & Recreation facilities
Buildings
A protected environment and green open spaces 1.1
Council's environmentally sustainable practices inspire everyone to protect and nurture the natural environment
1.2
The LGA's waterways are healthy and accessible
1.3
Everyone has access to beautiful parks and open spaces
1.4
Local heritage is protected and promoted
Quality, well planned development 2.3
Council-led development and assets provide quality, long-term benefits to Everyone
Active and accessible places and spaces 3.1
The LGA has a range of transport options to connect people, goods and businesses.
3.2
Roads, footpaths and cycleways are safe, accessible and free of congestion.
3.3
Everyone, including people with disability, navigates The LGA in safety.
3.4
Everyone has access to a range of active and passive recreation facilities
A diverse and productive economy 4.1
Local businesses are supported to help protect jobs and create employment opportunities.
A harmonious and proud community with strong social services and infrastructure 5.1
We create and support events that celebrate community and cultural identity and benefit the economy.
5.2
Affordable and quality housing options are available.
5.3
The community is socially and culturally connected.
5.4
Diverse, vibrant community facilities and spaces are connected, well maintained and accessible.
5.5
The community is safe and healthy.
Leadership and transparency 6.2
Open, informed and transparent decision-making supports The interests of The community.
6.4
Council's assets and resources are managed responsibly and with accountability
6.6
Council has a regional-approach to service delivery and facilities.
65
Risk Management Plans Council recognises that risk exists in all aspects of its operations. It takes seriously the impact of risk on business continuity and service delivery, and is committed to an approach that embraces a strong risk management culture and fulfils Council’s duty to provide a safe environment. Council has adopted an Enterprise Risk Management Strategy and corporate risk register, which is used to identify and manage significant risks. The framework is founded on principles from the Australian and New Zealand ISO Standard on Risk Management (AS/NZ ISO 31000:2009). It guides the monitoring and reporting of risk profiles and the required actions to reduce the level of risk presented to Council and the community. Linked to the corporate risk register are asset specific risk management plans that have been incorporated into the asset management plans. These assist in the identification and management of significant risks for each asset class. They provide detailed evaluation of the significant risks, risk treatments and risk monitoring activities.
66
Georges River Council // Asset Management Plan 2020/21
Bus Shelters Very Important
Children's Playground
Quite Important
Sporting Facilities
Not Really Important
Commercial Streetscapes
Not Important at all
Picnic Facilities in Local Parks
Where do we want to be? Community Buildings
Cycleways
0
20
40
60
80
100
Desired levels of service
14 13 12 11 10 9 8 7 6 5 4 3 2 1
The chart below displays the respondents’ satisfaction with the existing assets on a scale of 0-10 where 0 is dissatisfied is extremely Asset Very Satisfied extremely Overall Satisfied and 10Very Dissatisfiedsatisfied. Check! Council’s service levels have been developed through Overall, of satisfaction. The Public Amenities community consultation process to gauge 0 it shows very high levels 0 0 an extensive areas of Local Footpaths of the infrastructure assets that Council 0 higher dissatisfaction 0 will be investigated to 0 expectations target 0the service level improvements that would best Entertainment Centre / Museum 0 0 provide. The project involved a representative telephone improve the level of satisfaction. survey of 400 residents to explore the importance of, and Picnic Facilities 0 0 0 satisfaction with, existing assets as well as priorities for Community Buildings 0 0 0 When0asked about construction of new assets, most the construction of new assets. A deliberative community Commercial Streetscapes 0 0 respondents indicated that it was very important or0quite forum was also held with ratepayers to explore the Local Roads 0 0 important all the type of assets acceptable condition levels for the asset categories and Other Sporting Facilities 0 to continue to construct 0 0 Council provides. where funds should be spent in the future. Drainage 0 0 0 Kerb and Gutters The Field/ survey demonstrated Sports Playing Surfaces that ratepayers felt that all services provided Children`s Playground by Council’s infrastructure assets are important and they were generally satisfied with the Libraries current condition and service provided. Parks
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
Parks Libraries Children`s Playground Sports Field/ Playing Surfaces Kerb and Gutters Drainage Very Satisfied
Other Sporting Facilities Local Roads
Overall Satisfied
Commercial Streetscapes
Very Dissatisfied
Community Buildings Picnic Facilities Entertainment Centre / Museum Local Footpaths Public Amenities 0
2
4
6
8
10
Figure 4: Community satisfaction with assets
Scale of 0-10 where = 10 is extremely satisfied and 0 = extremely dissatisfied
67
Asset category
The Community Wants (Community LOS)
How we Deliver this (Technical LOS)
Average Acceptable Condition Rating (in a scale 1-5)
Sealed Roads
Sound smooth road surface to travel safely on
Sealed roads will be resealed or 2.9 rehabilitated when roughness counts exceeds 150 or more
Kerb and Gutter
Water doesn’t pond in driveways for more than 2 days after a storm
K&G rehabilitated or renewed at 2.5 or prior to condition 3
Footpaths
Safe, sound, non-slippery pathways provided to enable safe travel throughout the network
No more than 50% of all identified trip hazards have a step greater than 20mm.
Parking & Bus Shelters
Provide an efficient parking Annual condition assessments and bus shelter areas that are to ensure these assets are aesthetically pleasing maintained at condition 3 or above
2.7
Stormwater Drainage Assets
Level of flood protection provided to properties and roads;
Annual condition assessments to ensure these assets are contained at condition 3 and adopt a robust Floodplain Risk Management plan
2.5
Buildings Assets
Serviceable and accessible throughout the year with safety and comfort
Compliance with building & fire safety regulations
2.7
Buildings Assets
Serviceable and accessible throughout the year with safety and comfort
Compliance with building & fire safety regulations
2.7
2.7
The deliberative community forum included 102 ratepayers based on quotas set on age, gender, location and language spoken at home to reflect community make-up. The forum focused on footpaths, local roads, stormwater drainage, kerb and gutters, community buildings, and parks and reserves. The community was presented with photographs representing each of the five condition levels for each asset type and feedback was sought as to what they felt was an acceptable standard. For each of the asset classes the community agreed that a condition rating between 2 and 4 was the acceptable standard.
68
Georges River Council // Asset Management Plan 2020/21
9 8 7 6 5 4 3 2 1
Asset Subclass Cycleways Community Buildings Picnic Facilities in Local Parks Commercial Streetscapes Sporting Facilities Children's Playground Bus Shelters Public Amenities Local Footpaths Figure #: community satisfaction with assets
Very Important Quite Important Not Really Important Not Impo 23 39 28 25 42 29 27 37 30 33 41 21 36 42 18 42 38 16 43 41 14 44 38 17 57 33 8 scale of 0-10 where 0 is extremely dissatisfied and 10 is extremely satisfied
Local Footpaths Public Amenities Bus Shelters Very Important
Children's Playground
Quite Important
Sporting Facilities
Not Really Important
Commercial Streetscapes
Not Important at all
Picnic Facilities in Local Parks Community Buildings Cycleways 0
20
40
60
80
100
Figure 5: Perceived importance of constructing new assets
14 13 12 11 10 9 8 7 6 5 4 3 2 1
This feedback forms the basis for future asset maintenance and renewal funding allocations. Deterioration models are used to determine the optimal amount of funding required for each asset class to maintain the assets at the average condition level Asset Very Satisfied determined by the community. Public Amenities Local Footpaths Entertainment Centre / Museum Picnic Facilities Community Buildings Commercial Streetscapes Local Roads Other Sporting Facilities Drainage Kerb and Gutters Sports Field/ Playing Surfaces Children`s Playground Libraries Parks
Overall Satisfied 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Very Dissatisfied 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Check! 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Parks Libraries Children`s Playground Sports Field/ Playing Surfaces Kerb and Gutters Drainage Other Sporting Facilities
Very Satisfied
69
Implementation, monitoring and review Monitoring Asset Management Performance Council will monitor asset performance through the following performance indicators:
Indicator
Purpose
Benchmark
2019
2018
2017
1
Infrastructure Renewals Ratio
To assess the rate at which these assets are being renewed relative to the rate at which they are depreciating.
Min 100%
104.04%
76.62%
116.27%
2
Infrastructure Backlog Ratio
This ratio shows what proportion the backlog is against the total value of a Council’s infrastructure.
Max 2.00%
1.58%
2.14%
1.81%
3
Asset Maintenance Ratio
Compares actual v’s required annual asset maintenance. A ratio above 1.0 indicates Council is investing enough funds to stop the infrastructure backlog growing.
Min 100%
105.35%
114.60%
127.91%
Table 5. shows the industry benchmark and Council’s results for the past 3 years.
The ratios provide an indication as to whether present budgets are funding the correct share of the consumption of the assets each year. The following commentary was provided for the 2019 Asset Management Performance result. Council had a large number of carry over projects from 2018 that were completed in 2019 increasing the renewal ratio. There was also an increase in renewals spent on Buildings and Stormwater. The 2019 result offsets the result in 2018. With regard to Backlog Ratio, comprehensive conditions reports were performed for Roads and Footpaths in 2019 which indicated conditions in these categories were better than expected. Assets were externally revalued upwards in 2019.
70
Georges River Council // Asset Management Plan 2020/21
Maintenance The annual operating and maintenance costs of Council’s assets for the past 3 years is presented in table 6. Asset Class
2016-17
2017-18
2018-19
Open Space
$8,781,000
$11,428,000
$12,119,000*
Buildings
$5,422,000
$4,008,000
$5,744,000
Roads
$5,608,000
$4,076,000
$4,105,000
Footpaths
$2,488,000
$2,208,000
$2,892,000
Street Lighting
$2,794,000
$2,155,000
$2,448,000
Stormwater Drainage
$1,114,000
$1,476,000
$1,451,000
Annual Total
$26,207,000
$ 25,351,000
$28,759,000
71
Life cycle management and expenditure forecasts The long term priority presented in this strategy reflects Council’s objective to manage its assets at the identified levels of service while optimising life cycle costs. Life cycle management involves consideration of all management options over the life of an asset from creation to disposal. This includes operational and maintenance activities, restoration and renewal activities, enhancement and finally decommissioning and disposal. The following table presents a summary of ten-year expenditure forecast for Council’s infrastructure assets.
Financial Indicator
10yr Financial Projection1 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Operations ($M)
13,534
13,845 14,163
14,489
14,822
15,163
15,512
15,869
16,234
16,607
Maintenance ($M)
15,149
15,498 15,854
16,219
16,592
16,973
17,364
17,763
18,172
18,589
Projected Actual Renewals ($M)
16,665
9,361
9,797
10,022
10,253
10,488
10,730
10,976
11,229
9,577
Funding allocated towards the rolling works program will be determined each year when the annual budget is formulated and adopted. The size of Council’s annual budget allocations for its capital works and, importantly, how these budgets are apportioned to the various assets, will have major implications for Council’s future financial liability.
72
Georges River Council // Asset Management Plan 2020/21
Infrastructure sustainability Council’s forecasted maintenance budget is in line with required maintenance expenditure for the next 10 years achieving an asset maintenance ratio above 100%. However without additional funding allocation towards asset renewal expenditure, projections indicate that Council will fall below the asset performance indicators for Infrastructure Renewals Ratio and Infrastructure Backlog Ratio. As of 30 June 2019, Council’s infrastructure backlog was reported at $14.3 million. Council’s infrastructure backlog is projected to grow at approximately $2.3 million per year.
Financial Indicator
Recent Council spending on asset renewal has been significantly improved by the high value of additional capital grants Council has been successful in receiving in the past 4 years. Whilst these projects will have many positive benefits for our community it is important to differentiate between expenditure that has effectively renewed an existing asset and those which have created new assets. The creation of new assets with grant funding only adds to the challenge of funding Council’s operating, maintenance and renewal responsibilities. Council’s annual renewal expenditure is projected to significantly reduce following the completion of this large grant funded capital works program.
10yr Financial Projection1 2019/20
2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29
Projected Required Renewals($M)
15,466
17,817 20,186
22,574
24,980
27,404
29,846
32,305
34,781
37,274
Projected Actual Renewals($M)
16,665
9,361
9,577
9,797
10,022
10,253
10,488
10,730
10,976
11,229
Projected Depreciation($M)
16,080
16,290 16,762
16,948
17,542
17,632
18,359
18,345
19,213
19,086
Infrastructure Backlog($M)
15,466
17,817 20,186
22,574
24,980
27,404
29,846
32,305
34,781
37,274
Renewals ratio Infrastructure Backlog ratio
103.638% 57.468%57.131% 57.806% 57.131% 58.147% 57.131% 58.489% 57.131% 58.834% 1.67%
1.88%
2.09%
2.28%
2.47%
2.64%
2.81%
2.98%
3.13%
3.28%
Notes: Projected Figures are the 10 year annual average $ amounts Council’s infrastructure assets have very long useful lives. This means that they deteriorate at an extremely slow rate. As a result it can take many years of underfunding asset renewal to become apparent to Council and the community. This can lead to complacency in decision making. A failure to set aside appropriate funding for assets today has a compounding effect (backlog) and will lead to the deferral of significant costs to future operating and capital budgets. The funding strategy, scenarios and challenges are detailed in the Long-Term Financial Plan.
73
How will we get there? Improvement Plan
This is the first Asset Management Maturity Assessment for the amalgamated Georges River Council.
To meet the challenges outlined above and ensure that Council’s services and infrastructure are provided in a financially sustainable manner, Council must continue to improve our asset management practices.
Council’s maturity assessment for the core competencies is summarised in Figure 7. The Maturity Score Spider Graph shows the Current maturity for each maturity element as assessed by the organisation in blue below compared to the ‘core’ competencies (Level 3) required under the Australian National Assessment Framework (NAF) which are shown by the red line. It is expected that Council’s asset management maturity will change to core levels in all areas and develop towards advanced levels in the next 3 years.
This includes confirming resources and operational capabilities are identified and responsibility for asset management is allocated. Georges River Council undertook an asset management maturity assessment to gain an improved understanding of the current asset management capability in order to improve the overall performance of the Council and it operations. The maturity assessment is based on the International Infrastructure Management Manual (IIMM). As such this assessment provides Council with the opportunity to understand how its asset management practices, systems and processes compare with industry standards and other councils and also to measure their improvement in various areas of asset management capability.
74
Georges River Council // Asset Management Plan 2020/21
Current status of the council’s asset management practices, procedures, systems and training processes, asset data and information systems). Specific actions to be undertaken to improve or enhance councils asset management capability, including resource requirements and timeframes is provided below.
Strategic Actions – Improvement Plan Council has developed high level strategic actions and specific operational actions to improve asset management practices. These actions, described in table 9, are closely aligned with the Community Strategic Plan and Delivery Program and form the asset management improvement plan.
75
Asset Management Improvement Plan Strategic Actions Council has developed high level strategic actions and specific operational actions to improve asset management practices. These actions, described in table 9, are closely aligned with the Community Strategic Plan and Delivery Program and form the asset management improvement plan. Action
76
Responsibility
Priority
Timeframe
1
Demonstrate a culture of continuous improvement and effective governance throughout Council services. Implement an Innovation Strategy to provide a strategic approach to improvements to customer service, service delivery and performance improvement.
ET
High
Ongoing
2
Continue to develop transparent and responsible asset management processes that align with best practice. Convey consistency across the Asset Management Strategy, Asset Management Plan, Long Term Financial Plan, Asset Systems, data collection, condition reporting and service levels.
AE,MI,CFO
High
Ongoing
3
Develop asset accounting processes to identify all asset expenditure requirements into renewal, growth, maintenance or operational categories. Review corporate chart of accounts to establish cost centres and classifications for each category. Document processes to reduce processing time for annual financial reporting requirements and external valuation processes.
AE,AA,SF
High
Year 1 2020/21
4
Review roles, resources and responsibilities for asset management. This includes establishing a good understanding of asset data, finance and budgets. Build capacity specifically in capitalisation reporting. Document communication protocols between Finance and Infrastructure departments.
AE,MI,CFO
High
Year 1 2020/21
5
Establish clear expectations and a consistent approach to calculating depreciation and backlog. Apply this approach across all asset classes to obtain the most accurate backlog. Assess the backlog against Council’s infrastructure priorities, financial budgets and Long Term Financial Planning.
AE,AA
High
Year 1 2020/21
6
Review and update established service levels by conducting follow up consultation program with the community including asset maintenance funding in the context of Council’s overall budget imperatives. Use this to inform a review of asset ownership and maintenance standards.
AE
High
Year 1 2020/21
7
Update inspection process for Maintain marine and foreshore assets to develop maintenance, renewal and upgrade program on prioritised marine and foreshore assets.
AE
High
Year 1 2020/21
Georges River Council // Asset Management Plan 2020/21
Action
Responsibility
Priority
Timeframe
8
Deliver Works, Assets and Mobility program to capture engineering operations activities with corporate asset management platform.
CIO,EO
High
Year 1 2020/21
9
Update asset management plan for Road and Footpath assets classes based on full network data capture.
AE
Medium
Year 1 2020/21
10 Incorporate pavement base deflection testing into pavement management to allow more detailed approach to deterioration modelling and treatment selection.
AE
Medium
Year 1 2020/21
11 Undertake pavement ‘health check’ at critical high traffic locations to determine structural assessment and allow eligibility for external funding opportunities.
AE
Medium
Year 1 2020/21
12 Develop maintenance and renewal programs for building asset class based on contractor asset inspections.
AE
Medium
Year 1 2020/21
13 Prioritise and plan asset maintenance renewal works to meet agreed service levels based on site inspections, infrastructure priorities and community importance.
AE
Medium
Year 2 2021/22
14 Review processes for making capital investment decisions. To be driven by Council’s strategic long term planning documents, Long Term Financial Plan and Community Strategic Plan. Explicitly detail the impact on the future operations and maintenance budgets, “whole of life” costs and risk management assessments.
ET,CFO,ME, SF, AE
Medium
Year 2 2021/22
15 Undertake bridge inspections compliant with level 3 structural assessment to allow eligibility for external funding opportunities.
AE
Medium
Year 2 2021/22
16 Include Kerb and gutter condition assessment as part of routine pavement management inspection program.
AE
Medium
Year 2 2021/22
Abbreviations of key roles AA Asset Engineer CIO Chief Information Officer AA Asset Accountant ET Executive Team
SF EO CFO MI
Strategic Financial Management Specialist Executive Manager Engineering Operations Chief Financial Officer Manager Infrastructure 77
78
Georges River Council // Long Term Financial Plan 2020/21
Long term Financial Plan 2020/21
79
Executive Summary The Georges River community, along with the rest of Australia, is facing extraordinary challenges due to the current COVID-19 pandemic. Changes have been moving quickly and this is likely to impact our 2020/21 budget and future forecasts. Over the coming months Council will better understand the longer-term impact of COVID-19 on our community and on our operations. In light of the current events, Council has prepared a budget ready to deliver valued community services, projects and programs during the 2020/21 financial year. The Long Term Financial Plan (LTFP) has been built using the budget for 2020/21 as the base and presents a financial projection of the next ten years based on the Community Strategic Plan and Delivery Program. The 10 year forecast illustrates the operating results and is based on projected known events. These projections form a roadmap of the operating results, which provides Council an opportunity to: • • •
Assess different courses of corrective action and quantify the potential outcomes Ensure sustainability through positive net results Structure the operations, based on affordability and financial sustainability.
Over the past two financial years, the LTFP has illustrated Council’s poor and deteriorating financial outlook over a 10 year period. Prior to the events of COVID-19, Council had an adopted forecasted operating deficit (before capital grants) for 2020/21 of $13 million. Failure to address the unsustainable financial position places Council in contravention of Section 8B of the Local Government Act 1993 and will compel Council to cut and/or reduce services to ease the unfavourable gap between income and expenditure. In preparing the draft 2020/21 Budget some difficult decisions have been required during this unpredictable time. Therefore, in order to minimise Council’s projected operating deficit, protect cash reserves and weather any adverse impact of COVID-19, programs, services and projects have been reduced, deferred or deleted. The approach to these decisions has been balanced, in that they have been made across all areas of Council’s operations, including employee costs, Councillor costs and community assets.
80
Georges River Council // Long Term Financial Plan 2020/21
In order to significantly reduce the adopted operating deficit and address financial sustainability, reductions include $9 million worth of operational programs project, services and $350 million in capital projects being deferred, reduced or deleted. Based on this approach the adopted forecast deficit of $13 million has been reduced to a projected deficit of $3.2 million. Though these measures have been introduced and the projected deficit for 2020/21 has been reduced, the projection over 10 years still results in a deteriorating financial position, accelerating in 2021/22. Based on this outlook the implementation of Council’s financial strategies, outlined within this document, are essential in securing the sustainability of Council. Establishing a new rate income base is one of the key strategies and consultation recommenced in September 2020 on the New Rates 2021 proposal.
Financial Governance Principles In preparing the Long Term Financial Plan (LTFP) and guiding financial decisions are the Integrated Planning and Reporting documents, the Local Government Act 1993 and financial principles. Council conducted a program of extensive community engagement to develop Georges River's first Community Strategic Plan. The Community Strategic Plan and associated documents were adopted by Council on 25 June 2018. The Community Strategic Plan was developed around six themes or pillars which were identified in the consultation process as important to the community.
- asset maintenance and enhancement, - funding decisions, - risk management practices • Councils should have regard to achieving intergenerational equity, including ensuring the following: -
policy decisions are made after considering their financial effects on future generations, - the current generation funds the cost of its services. In addition to the legislated principles of sound financial management, Council’s actions and strategies are balance on the following principles; Sustainability, Affordability, Accountability and Growth.
These six pillars, which underpin our future work, are: 1. 2. 3. 4. 5.
A protected environment and green open spaces Quality, well planned development Active and accessible places and spaces A diverse and productive economy A harmonious and proud community with strong social services and infrastructure 6. Leadership and transparency The Community Strategic Plan is part of a suite of documents which include the Delivery Program and Operational Plan, which outlines our key actions over the next three years and annual budget, Fees and Charges. These key documents feed into the Resourcing Strategy and Council’s long-term financial plan. The Local Government Act 1993 (the Act), outlines the principles of sound financial management in which Council is governed by. Section 8B of the Act states that: • Council spending should be responsible and sustainable, aligning general revenue and expenses. •
Councils should invest in responsible and sustainable infrastructure for the benefit of the local community.
•
Councils should have effective financial and asset management, including sound policies and processes for the following: -
Sustainability
Ensure the long term sustainability of Georges River Council – this involves putting in place measures to fortify its income base (without depending on one-off receipts of grants or contributions) and managing its expenditure to optimum levels, maintain positive Net Operating Results.
Affordability
Operate within the realms of affordability by structuring expenditure within the boundaries of income received. Plan and execute programs and projects after taking into account the affordability of the long term ongoing impact on future revenue and expenditure.
Accountability
Continue to be accountable to ratepayers for optimum management of income generated and expenditure incurred. Continue to be accountable to ratepayers for optimum management of Council assets and resources.
Growth
Approach all activities from the perspective of constantly improving the quality of services provided. Deliver services that benefit the larger community.
performance management and reporting,
81
Financial Sustainability Challenges Georges River Council takes great pride in its role of providing and maintaining high quality local services for our community. If Council is to continue to deliver the current level of services and facilities, we need to effectively plan for the future. Following extensive consultation with our community in 2018, Council adopted its first ever Community Strategic Plan which details the community’s aspirations for the Georges River area over the next 10 years. This Plan highlights many community projects, programs, initiatives and events that require substantial funding to become a reality. Council, in preparing the LTFP, recognised a number of challenges it will face in the near future. The challenges, if unaddressed, will have an adverse impact on the long term financial sustainability of Council. These challenges are summarised: •
•
•
•
•
Experiencing declining profitability, amplified by the loss of income of $2.3m from the former Hurstville Council Special Rate Variation (SRV). Due to stop on 1 July 2021. The compounded impact of the expiring SRV results in a forecast loss of $19m from 2021/2022 to 2028/2029. Dramatic decline in the cash rate and the loss of investment income used to fund operations of $4m in 5 years. Operating performance, net of capital grant income, remains negative with the deficit increasing each year. Increase in Council’s Net Worth is dependent on the quantum of Capital Grants received and not on the operations being cost effective.
The operating results (actual and forecast); display a downward trend leading to increasingly negative results from 2021/22 onwards. There is a dramatic reduction in Rates income from 2021/22 onwards, due to the termination of the SRV that commenced over 10 years ago. The impact on the operating results is a loss of $2.3m income in that year, compounded each year thereafter. In addition, Council's operating results are augmented
82
Georges River Council // Long Term Financial Plan 2020/21
by the value of capital grants received. These grants are for exclusive use on capital expenditure and are not to be used to fund operating expenditure. When these funds are excluded, the Operating Results show increasing negative returns each year. This means that Council, in its current form, is unable to fund its operating expenditure from the operating income it receives. It has also been demonstrated that there is an adverse widening gap between the increases to operating income and the increases to operating expenditure each year. There are two fundamental problems facing Council’s finances: 1. Council does not generate sufficient operating income to fund operating expenditure for its current service portfolio and program of works 2. Each year, increases in operating income are less than the increases in operating expenditure. When reviewing the actual results of Georges River Council so far, Council has generated surpluses each year since amalgamation. However, these actual results have been favourably impacted by additional operating and capital grants received from the State Government, to assist with the transition to functioning as an amalgamated council. Despite the receipt of these additional operating grants, when capital grants are excluded, the operating results show a negative outcome. The COVID-19 pandemic has now presented fresh challenges to Council’s efforts to improve its financial position, with the financial impact of the pandemic accelerating the financial deficits that were forecast in future years. At this stage, the economic effects of the pandemic are expected to be long lasting, with recovery of activities back to normal anticipated to be slow and gradual rather than an immediate bounce back. Council has and will continue to find savings, efficiencies and implement improved operating models but without the rate income increase, deep cuts to services will be inevitable. Council’s service portfolio is complex and diverse. It provides 200 services which our community members value, and are essential to a thriving and growing community.
If the Council’s total rate income does not increase over the next 5 years as proposed by this rate increase, we will be forced to reduce or cease many services. We will be unable to respond to the needs of future population growth which will continue to strain service quality. This will result in higher use/overuse of current assets and poorer condition standards. In examining the financial statements relating to the former councils, the operating performance ratios in the 4 years leading up to 2014/15, are shown to be negative, with the exception of 2012/13 (for Hurstville) and 2014/15 (for Kogarah). In 2014/15, both Councils recorded depreciation charges which were considerably lower than the previous year. There were no statements or reasons provided for the lower depreciation charge, in either sets of financial statements.
83
Financial Strategy Based on the challenges presented in this Long Term Financial Plan, Council is building on the strong foundations established to ensure the delivery of community aspirations outlined in the Community Strategic plan. To achieve this, Council will take the following steps: 1. Establish a Financial Sustainability Working Group 2. Engage with the community on Council’s discretionary service portfolio and the level of support to maintain service levels. 3. Review the rates structure to bring equity of rates charged to ratepayers 4. Seek the views of the community in applying for a Special Rate Variation that will maintain the expiring SRV and contribute towards reducing operating losses 5. Explore potential avenues to raise new streams of income and increase current income levels through a wider application of the user pays model 6. Explore potential savings in operating expenditure by reviewing operating processes 7. Apply strategic assets management principles, ensuring compliance with relevant legislation 8. Continue to benchmark activities and align operations where necessary, to yield optimum results 9. Introduce and implement changes in focus, to view activities as “commercial” or “non-commercial” 10. Evaluate affordability of capital projects from a “long term operating impact” point of view 11. Continue to identify and implement initiatives that improve service efficiency and productivity 12. Evaluate the feasibility of major projects from a cost/benefit perspective and understand the affordability payback period in respect of each 13. Focus on bridging the gap between increases in income and expenditure 14. Mitigate the impact of external factors on Council’s financial sustainability 15. Provide financial hardship support to those adversely impacted 16. Focus on works projects that are funded from externally restricted reserves.
84
Georges River Council // Long Term Financial Plan 2020/21
85
Planning for our Future – Rates Consultation 2020 The amalgamation of two organisations whilst maintaining everyday services is a complex task that requires the involvement of the entire organisation and the support of the community.
Following the adoption of the budget in June 2020 and the presentation of the revised LTFP, Council resolved to recommence consultation with the community on a New Rates 2021 proposal.
Georges River Council has embraced the fresh start that the merge of the former Hurstville City and Kogarah City Councils presented, building the foundations for a strong organisation that will deliver outstanding results to our community and city. Information on Council efficiencies to date can be further explored in Council's Amalgamation Journey Final Report.
The recommendations to Councillors in February 2020, was based on extensive community consultation that took place in October and November 2019, through face-to-face community information sessions, surveys to all ratepayers and other engagement activities.
While Council’s income has increased and we have made savings as a result of the amalgamation of the former Kogarah and Hurstville Council in 2016, these changes have not kept pace with the increase in costs in providing services, especially as our population continues to grow. The terms of the amalgamation specified the preservation of the rates structures of the Hurstville and Kogarah City Councils for a period of four years plus 1 year optional extension. At the Extraordinary Council Meeting held on Monday 10 February 2020, Council considered whether to proceed with an application to Independent Pricing and Regulatory Tribunal (IPART) to introduce in 2020/21 a harmonised minimum rate, harmonised rate in the dollar and also a new Special Rate Variation (SRV) to improve Council’s financial sustainability and replace the expiration of the former Hurstville Council SRV. The SRV application was prepared to reduce Council’s operating deficit by $8 million. At that meeting, Council considered the results of the community consultation which outlined there were more than 6,000 responses received from residents. The consultation found that 78% of respondents were supportive of introducing a consistent minimum rate across the city and 66% supported a minimum rate increase to $965.80. Additionally, 54% of respondents were supportive of Council applying to IPART for a SRV of 8.1% plus a rate peg of 2.5%. Council resolved not to proceed with the application for the SRV or the harmonisation of rates in 2020/21 and instead to investigate staff reductions and salary savings as part of future cost saving measures. 86
Georges River Council // Long Term Financial Plan 2020/21
The consultation undertaken last year was comprehensive in that three options were presented to the community. The preferred option was option 1, Financially Sustainable and was developed after reviewing multiple options with a varying degree of impact, along with comparative metropolitan rating information. The preferred option is based on utilising our stable income source to close the gap between income and expenditure, along with reviewing services to improve efficiency.
The three options consulted on with the community in 2019 are outlined on the right:
87
Planning for our Future – New Rates 2021 Following the decision of Council in February 2020 to defer the 2020 proposal, consultation recommenced in September 2020. The new proposal's total increase is equivalent to Council’s 2019 proposal of a permanent one-off 10.6% increase (rate peg of 2.5% and 8.1% SRV) that did not proceed. The new proposal is a permanent multi-year SRV spread over 5 years. The total Council rate income increase is 29% (inclusive of 16.5% SRV and assumed rate pegs of 2.5% per year or total of 12.5%). The proposed SRV will result in additional rate income of approximately $23 million over 5 years. All ratepayers were provided with a brochure outlining the proposed new rating system. The brochure was comprehensive and was complimented by online videos, a rates calculator, webinars and frequently asked questions on Council’s website. If the Council’s total rate income does not increase over the next 5 years as proposed by this rate increase, we will be forced to reduce or cease many services. We will be unable to respond to the needs of future population growth which will continue to strain service quality. This will result in higher use/overuse of current assets and poorer condition standards. If the proposed new rating system is not approved the average residential rate would be $1,136, the average business rate would be $3,074 and the minimum rate would be $598. Houses in the old Kogarah Council area will pay almost three times what an apartment currently pays (an average increase of $300) and apartments will drop – broadening the inequity instead of addressing it. Houses in the old Hurstville Council area will have an average decrease of $25 and those who had a large rate increase in 2020/21 will not receive a reduction. Council has and will continue to find savings, efficiencies and implement improved operating models but without the rate income increase, deep cuts to services will be inevitable. The illustations below summarise the impact of the proposed rate increase and minimum changes.
Current average and minimum annual rates
Proposed 2021/22 average and minimum annual rates
Hurstville
$586
Hurstville
$586
Georges River
$1,139 Average
Kogarah
$967 Minimum
Residential
88
Georges River
$967 Minimum
$3,087 Average
Business
Georges River Council // Long Term Financial Plan 2020/21
Strategic Centre
$1,500
Georges River
Kogarah Georges River
$1,169
$965.80 Minimum
Average
Residential
Business Other Georges River
$3,311
$1,100 Minimum
Average
Business
For the average residential ratepayer, the proposed changes will mean around 60 cents extra per week in the first year followed by $1.35 per week increases each year for the following 4 years. For the average business ratepayer, the proposed changes will mean $4.30 extra per week in the first year followed by $5.50 week increases each year for the following 4 years.
Former council's average rate
per
Currrent Year
2021/22
2.6%
5.8%
Kogarah
$1,221
$1,251
Hurstville
$1,081
$1,110
Kogarah
$3,167
$3,006
Hurstville
$3,043
$3,477
Total council rate income increase %
Residential
Business
Current Year
2021/22
2022/23
2023/24
2024/25
2025/26
$1,139
$1,169
$1,233
$1,300
$1,372
$1,447
$966
$990
$1015
$1,040
$1,066
$3,311
$3,558
$3,822
$4,105
$4,408
$1,500
$1,538
$1,576
$1,615
$1,656
$1,100
$1,128
$1,156
$1,185
$1,214
5.8%
5.8%
5.8%
5.8%
5.8%
Residential average Residential minimum Business average Minimum for Kogarah and Hurstville CBD Business minimum other Total council rate income increase % Total council rate income increase $
Kogarah
$967
Hurstville
$586 $3,087
Kogarah $967 Hurstville $586 Kogarah $967 Hurstville $586 2.6%
$4.1 million $4.3 million $4.6 million $4.9 million $5.1 million
Disclaimer: Houses and apartments may be on the minimum, though the majority of minimum rate properties are apartments. The averages quoted within this document have been developed from financial modelling based on current property data and land values as of 1 July 2020. A new set of land values will be supplied by the NSW Valuer General and applied from 1 July 2023. The final 2021/22 rate levies may vary due to Independent Pricing and Regulatory Tribunal (IPART) decisions and marginal movements due to model sensitivity.
89
Socio-Economic Snapshot When preparing the Financial Strategy and Long Term Financial Plan, a key factor taken into consideration was the socio-economic profile of the Georges River Local Government Area (LGA). With rates, annual charges and user fees and charges making up the majority of Council’s total revenue, it is important that the capacity to pay is one of those factors. Key insights of our community:
Population
156,293 Estimated residential population in 2017 185,346 Estimated population by 2030 8.3% Population increase from 2011 census to 2016 15% Growth projected for future years
Household income
$1,654 Median weekly income 25.8% the LGA's largest quartiles were in the largest group for household income
Employment
6.5% unemployment rate compared to 6.3% for NSW 62% of workforce worked full time and 36% part time
Education
52.9% of people in the area had a tertiary qualification compared to 52.7% for Greater Sydney
7.7% are attending university, compared to Greater Sydney 6.1%
Households
55,000 Residential dwellings 45.8% of dwellings were medium or high density (16.3% medium, 29.5% high) 44% of households in the area had access to two or more vehicles 37% of the area’s workforce also live in the area 2.84 Average household size is greater compared to Greater Sydney 2.72
Housing tenure
62.9% households were purchasing or fully owned their home compared to Greater Sydney 59%
30.8% were renting privately $2,167 Median monthly mortgage repayment $450 Median weekly rent 50.9% of renting households paying $450 or more in rent 90
Georges River Council // Long Term Financial Plan 2020/21
The SEIFA Index measures the relative level of socioeconomic disadvantage based on a range of Census characteristics. The index is derived from attributes that reflect disadvantage such as low income, low educational attainment, high unemployment, and jobs in relatively unskilled occupations, and is useful in identifying geographic areas that are relatively disadvantaged.
Connells Point - Kyle Bay
1,101.0
Oatley
1,098.8
Lugarno
1,097.2
An area with an SEIFA of 1000 is considered average while a lower score indicates that the area is experiencing more disadvantage. The SEIFA index by suburb is outlined below. Whilst there is some variation across the LGA, the overall index for Georges River Council Local Government Area (1020) is above the NSW (1001) and Greater Sydney (1018) index. Council understands that ratepayers may experience financial hardship and has options available under relevant legislation to provide support.
Hurstville Grove
1,082.90
Blakehurst
1,078.00
Kogarah Bay - Carss Park
1,071.90
Peakhurst Heights
1,066.40
Sans Souci
1,063.30
Beverley Park - Ramsgate
1,057.50
Mortdale
1,039.60
SSROC
1,023.70
Georges River Council area
1,020.00
Greater Sydney
1,018.00
Kogarah
1,015.10
Penshurst
1,014.40
St George Region
1,012.30
Peakhurst
1,008.80
Carlton
1,002.40
Kingsgrove
1,002.20
Australia
1,001.90
New South Wales
1,001.00
South Hurstville
998.7
Beverly Hills - Narwee
992.0
Allawah
989.4
Hurstville (City Centre)
972.1
Hurstville (total)
970.1
Hurstville (Remainder)
969.5
Riverwood
967.7
Source: Australian Bureau of Statistics, Census of Population and Housing 2016. Compiled and presented in profile.id by .id, the population experts https://home. id.com.au
91
Financial Models Overview Model 1 – Current Situation based on 2020/21 Budget Council had an adopted forecasted operating deficit (before capital grants) for 2020/21 of $13 million. In order to significantly reduce the adopted operating deficit and address financial sustainability, reductions include $9 million worth of operational programs project, services and $350 million in capital projects being deferred, reduced or deleted. The model outlines the forecast result based on the reduced 2020/21 budget. Based on this approach the adopted forecast deficit of $13 million has been reduced to a projected deficit of $3.2 million in 2020/21. This model highlights that the initiatives implemented in 2020/21 are not sufficient to resolve the future deficits. The reduction of $2.3m in rate income (expiring former Hurstville SRV) in 2021/22 accelerates and widens the deficit. The financial impacts of COVID-19 have not been factored into this model. Model 2 – Special Rate Variation (SRV) Proposal of 5.8% each year over a 5 year period commencing in 2021/22 As highlighted in Model 1 the savings identified and addition revenue from the sale of assets do not translate into reducing future year projected deficits. It is evident that Council needs to generate additional income and/or realise savings in Expenditure to address the ever increasing decline in its financial performance. Model 2 outlines the New Rates 2021 proposals, which is equivalent to Council’s 2019 proposal of a permanent one-off 10.6% increase (rate peg of 2.5% and 8.1% SRV) that did not proceed. The new proposal is a permanent multi-year SRV spread over 5 years. The total Council rate income increase is 29% (inclusive of 16.5% SRV and assumed rate pegs of 2.5% per year or total of 12.5%). The proposed SRV will result in additional rate income of approximately $23 million over 5 years. Special Rate Variation Proposal 2021/22
2022/23
2023/24
2024/25
2025/26
5.8%
5.8%
5.8%
5.8%
5.8%
Model 3 - Special Rate Variation (SRV) of 5.8% each year over a 5 year period commencing in 2021/22 plus a further $12 million in savings identified This model provides a forecast of a scenario in which Council builds on Model 2, as outlined above but continues to identify savings of $12 million in order to improve the operating surplus of Council. Initiatives proposed will be outlined in the relevant section of the application to the Independent Pricing and Regulatory Tribunal (IPART). Special Rate Variation Proposal
92
2021/22
2022/23
2023/24
2024/25
2025/26
5.8%
5.8%
5.8%
5.8%
5.8%
Georges River Council // Long Term Financial Plan 2020/21
Model Sensitivity These models are based on assumptions which represent the most likely outcome, given the prevailing economic and operating environment. In the context of marginal (and adverse) Model Sensitivity operating results, particularly from 2021/22, any actual divergent outcomes (by a major the assumptions could which have arepresent materialthe impact theoutcome, results.given the prevailing economic Theseextent) modelsto are based on assumptions most on likely
and operating environment. In the context of marginal (and adverse) operating results, particularly from 2021/22, any example, a one(by per cent increase inflation factor eachayear in the 10-year actualFor divergent outcomes a major extent) to in thethe assumptions could have material impact on theperiod results.
will see the cumulative negative operating result adversely affected by 5.6 times. Interest on
For example, a one has per cent in the factoryear. each year in the 10-year period will see the cumulative investments beenincrease estimated at inflation 1.5% each negative operating result adversely affected by 5.6 times. Interest on investments has been estimated at 1.5% each year. The proposed 2020/21 budget and the LTFP has not factored in impacts to income and
expenditure of COVID-19 pandemic on key affected services. This decision is based critical
The proposed 2020/21 budget and the LTFP has not factored in impacts to income and expenditure of COVID-19 factors being unknown, such the scale of on thecritical financial impact, the length ofastime of of the pandemic on key affected services. Thisas decision is based factors being unknown, such the scale government orders will stay in place and financial support packages that will be received. financial impact, the length of time government orders will stay in place and financial support packages that will be received.
The table below highlights the key services affected by the COVID-19 pandemic and their
The table belowbudget highlights the key affected by the COVID-19 pandemic their 2020/21 budget in order 2020/21 in order toservices highlight the potential financial impact of and a downturn in income. to highlight the potential financial impact of a downturn in income. As highlighted the below budget the LTFP has not As highlighted the below budget the LTFP has not factored the impact of COVID-19 and factored the impact of COVID-19 and will be amended where required in quarterly reviews to Council.
will be amended where required in quarterly reviews to Council.
2020/21 Budgeted Income Statement $'000
Strategic Parking Property Enforcement
Child Care
Premium Facilities
Events
Sports Recreation
Library Service
Operating Revenue Rates and Annual Charges
0
0
0
0
0
0
0
User Charges and Fees
474
0
3,548
4,317
37
283
126
Interest and Investment Revenue
0
0
0
0
0
0
0
4,790
3,950
0
564
161
0
0
Operating Grants and Contributions
0
0
3,555
0
0
0
388
Capital Grants and Contributions
0
0
0
0
0
400
50
Profit on Sale of Assets
5,000
0
0
0
0
0
Total Operating Revenue
10,264
3,950
7,103
4,881
198
683
564
Employee Costs
397
878
6,036
608
824
328
4,866
Interest Charges
0
0
0
0
0
0
0
Materials and Contracts
165
117
175
2,814
9
805
480
Depreciation and Amortisation
514
0
180
0
0
0
745
2,156
522
250
2,015
730
568
290
Total Expenditure
3,232
1,517
6,641
5,437
1,563
1,701
6,380
Operating Result before Capital Revenue
7,032
2,433
461
(556)
(1,365)
(1,418)
(5,866)
Other Revenues
Operating Expenditure
Other Operating Expenses
93
Key Performance Indicators A number of key performance indicators are used by the Office of Local Government to help determine the sustainability of NSW councils. These indicators, together with others that are in use in the commercial environment are shown. The indicators relevant to each stage of operations are shown in the tables. This is to provide a snapshot of the state of Council’s current financial position and the comparative results relating to each model. As is evident from the key performance indicators, the longer term outlook for Council (based on the service portfolio) is not favourable. While surpluses are being generated over the short term, the 10 year trend, as projected in the Long Term Financial Plan is downward. Council is now working towards introducing corrective measures to arrest the decline in performance and ensure long term financial sustainability.
94
•
The Operating Performance, Unrestricted Current and Cash Coverage ratios highlight the essential ingredients for sustainable financial operations.
•
The Operating Performance Ratio measures the extent of Council’ Revenue (net of Capital Grants) coverage of Expenditure. This needs to be a positive figure and ideally growing.
•
The Unrestricted Current Ratio measures Council’s liquidity. The benchmark based on successful organisations is set at 1.5 to 2.0. An increasing ratio over time shows improved liquidity and an environment where there is sufficient coverage of Current Liabilities from Current Assets.
•
The Cash Coverage Ratio measures Council’s cash coverage of expenditure. This shows the number of months that Council will be able to operate unhindered, in the event that Council is unable to generate any additional cash through its operations. The greater the number of months shown, the more comfortable the operating environment.
•
Council’s Current Ratio is maintained at a healthy level throughout the 10-year period. While there is a projected decrease in Council’s cash balances, there is sufficient buffer to maintain adequate (above benchmark) levels of working capital.
Georges River Council // Long Term Financial Plan 2020/21
95
96
Georges River Council // Long Term Financial Plan 2020/21 11,871
Other revenues
94,979
113,652
(3,270)
Result Net of Capital Grants – Surplus/(Deficit)
80,618
551
32,483
(3,225)
18,141
5,000
13,141
(55)
(24,014)
37,210
(124,537)
(23,109)
(41,928)
(59,500)
161,747
11,355
21,366
11,360
2,190
16,657
98,819
$ '000
BUDGET
2020/21
(11,797)
10,054
10,054
(22)
(24,895)
34,971
(128,502)
(24,200)
(42,623)
(61,679)
163,473
11,613
21,851
11,617
2,425
17,034
98,933
$ '000
ESTIMATE
2021/22
(12,062)
10,340
10,340
(2)
(26,135)
36,477
(130,957)
(23,888)
(43,698)
(63,371)
167,434
11,906
22,402
11,909
2,447
17,464
101,306
$ '000
ESTIMATE
2022/23
(14,499)
8,467
8,467
0
(27,413)
35,880
(135,279)
(24,446)
(44,798)
(66,035)
171,159
12,206
22,966
12,209
2,239
17,903
103,636
$ '000
ESTIMATE
2023/24
(15,661)
7,879
7,879
0
(28,691)
36,570
(138,336)
(24,648)
(45,918)
(67,770)
174,906
12,511
23,540
12,514
2,075
18,350
105,916
$ '000
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
(7,944)
6,124
1,061
5,063
(71)
(20,631)
(19,557) (74)
25,765
(120,256)
(21,935)
(39,591)
(58,730)
146,021
9,175
14,068
8,877
3,426
15,496
52,114
Net Surplus/(Deficit)
Adjustment on amalgamation
Other adjustments / Revaluation
Net gains/(losses) from Disposal of Assets
Prior year adjustments
Net Operating Result for period - Surplus/(Deficit)
Financing costs (Interest Expenses)
Depreciation
Surplus/(Deficit) prior to Depreciation & Financing Costs
(120,568)
(21,606)
Other Expenses
Total Operating Expenditure
(56,508) (42,454)
Employee Costs
Materials and Contracts
Operating Expenditure
172,682
36,304
Total Operating Revenue
11,153
Grants and Contributions - Capital
5,891
Grants and Contributions - Operating
Interest and investment revenue
92,784
$ '000
$’000
14,679
BUDGET
ACTUAL
Rates and Annual Charges
2019/20
2018/19
User Charges and Fees
Operating Revenue
Model 1 Income Statement
Model 1 – Current Situation based 2020/21 Budget
Detailed Financial Models
(18,918)
5,208
5,208
0
(29,979)
35,187
(143,506)
(26,362)
(47,062)
(70,082)
178,693
12,823
24,126
12,826
1,971
18,808
108,139
$ '000
ESTIMATE
2025/26
(21,074)
3,631
3,631
0
(31,286)
34,917
(147,495)
(26,369)
(48,192)
(72,934)
182,412
13,130
24,705
13,133
1,882
19,261
110,301
$ '000
ESTIMATE
2026/27
(21,843)
3,431
3,431
0
(32,601)
36,032
(150,112)
(26,462)
(49,301)
(74,349)
186,144
13,433
25,274
13,435
1,792
19,703
112,507
$ '000
ESTIMATE
2027/28
1
(23,917)
1,939
1,939
0
(33,929)
35,868
(154,089)
(27,073)
(50,436)
(76,580)
189,957
13,742
25,856
13,745
1,701
20,156
114,757
$ '000
ESTIMATE
2028/29
97
(1,419,106) (103,712)
(1,522,818)
Total Equity
1,522,818
(1,528,942)
(1,425,230) (103,712)
1,528,942
(38,129)
(625)
(1,125) (40,406)
(625)
(20,318) (596) (500) (16,090) (37,504)
1,567,071
1,393,139 17,660 1,975 1,412,774
(1,125)
EQUITY Retained Earnings Revaluation Reserve
Net Assets
Total Liabilities
Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities
(23,468) (596) (500) (14,717) (39,281)
1,563,224
Total Assets
LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities
1,366,713 17,660 1,362 1,385,735
143,338 10,479 (290) 185 585 154,297
$ '000
$’000
166,710 10,707 (538) 155 455 177,489
2019/20 BUDGET
2018/19 ACTUAL
Non-Current Assets Property, Plant & Equipment Investment Property Intangible Assets Total Non-Current Assets
ASSETS Current Assets Cash, Cash Equivalents & Investments Receivables - Gross Less: Provision for Impairment Inventories Other Total Current Assets
Model 1 Statement of Financial Position 2020/21
2021/22
(1,557,137)
(1,453,425) (103,712)
1,557,137
(37,057)
0
0
(20,283) (596) (125) (16,053) (37,057)
1,594,194
1,425,004 17,660 2,816 1,445,480
129,476 18,827 (368) 194 585 148,714
$ '000
ESTIMATE
2022/23
(1,567,477)
(1,463,765) (103,712)
1,567,477
(35,923)
0
0
(19,701) (596) 0 (15,626) (35,923)
1,603,400
1,439,530 17,660 3,655 1,460,845
126,224 15,915 (368) 199 585 142,555
$ '000
ESTIMATE
2023/24
(1,575,944)
(1,472,232) (103,712)
1,575,944
(36,026)
0
0
(19,147) (596) 0 (16,283) (36,026)
1,611,970
1,452,928 17,660 4,344 1,474,932
123,617 13,000 (368) 204 585 137,038
$ '000
ESTIMATE
2024/25
(1,583,823)
(1,480,111) (103,712)
1,583,823
(36,368)
0
0
(19,062) (596) 0 (16,710) (36,368)
1,620,191
1,465,198 17,660 4,883 1,487,741
120,047 11,977 (368) 209 585 132,450
$ '000
ESTIMATE
Georges River Council DRAFT Resourcing Strategy 2020/2021
(1,547,083)
(1,443,371) (103,712)
1,547,083
(36,335)
(125)
(125)
(19,628) (596) (500) (15,486) (36,210)
1,583,418
1,409,388 17,660 1,827 1,428,875
130,661 23,475 (368) 190 585 154,543
$ '000
BUDGET
2025/26
(1,589,031)
(1,485,319) (103,712)
1,589,031
(36,706)
0
0
(18,830) (596) 0 (17,280) (36,706)
1,625,737
1,476,342 17,660 5,510 1,499,512
114,002 11,792 (368) 214 585 126,225
$ '000
ESTIMATE
2026/27
(1,592,662)
(1,488,950) (103,712)
1,592,662
(37,221)
0
0
(18,641) (596) 0 (17,984) (37,221)
1,629,883
1,486,354 17,660 5,962 1,509,976
107,663 11,808 (368) 219 585 119,907
$ '000
ESTIMATE
2027/28
(1,596,093)
(1,492,381) (103,712)
1,596,093
(36,747)
0
0
(17,818) (596) 0 (18,333) (36,747)
1,632,840
1,495,239 17,660 6,476 1,519,375
101,206 11,818 (368) 224 585 113,465
$ '000
ESTIMATE
2028/29
2
(1,598,032)
(1,494,320) (103,712)
1,598,032
(36,566)
0
0
(17,087) (596) 0 (18,883) (36,566)
1,634,598
1,502,996 17,660 6,790 1,527,446
94,829 11,877 (368) 229 585 107,152
$ '000
ESTIMATE
98
Georges River Council // Long Term Financial Plan 2020/21 (48,972) (28,859)
(70,245) (24,355)
166,710
182,036
Cash and Cash Equivalents - End of the Year
(15,326)
Cash and Cash Equivalents - Beginning of the Year 130,661
143,338
(12,677)
(500) (500)
(40,529) (11,541)
5,000
2,622 21,366
(60,104) (42,059) (23,259) (55) 0 0 (636)
88,144 16,527 11,088 0 9,004 78
$ '000
BUDGET
2020/21
129,476
130,661
(1,185)
(500) (500)
(41,386) (17,174)
0
2,361 21,851
(61,112) (42,504) (23,782) (22) 0 0 16,489
102,983 17,038 11,621 0 12,267 0
$ '000
ESTIMATE
2021/22
126,224
129,476
(3,252)
(125) (125)
(41,500) (16,590)
0
2,508 22,402
(63,798) (43,511) (24,662) (2) 0 0 13,463
103,854 17,417 11,910 0 12,255 0
$ '000
ESTIMATE
2022/23
123,617
126,224
(2,607)
0
(41,500) (16,183)
0
2,351 22,966
(65,378) (45,221) (24,582) 0 0 0 13,576
106,316 17,855 12,211 0 12,375 0
$ '000
ESTIMATE
2023/24
120,047
123,617
(3,570)
0
(41,500) (15,792)
0
2,168 23,540
(67,343) (45,739) (24,917) 0 0 0 12,222
106,983 18,301 12,518 0 12,419 0
$ '000
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
143,338
166,710
(23,372)
(500) (500)
1,763
3,443
(500) (500)
4,282 14,068
6,143 36,304
(57,357) (40,095) (24,141) (71) 0 0 5,987
(57,877) (42,989) (19,448) (74) 0 140 9,529
$ '000
$’000
95,098 16,881 8,548 0 7,372 (248)
BUDGET
ACTUAL
92,586 13,325 11,644 238 11,736 248
2019/20
2018/19
Net Increase / (Decrease) in Cash and Cash Equivalents
Cash Flows from Financing Activities Receipts New Borrowings Payments Repayment of Borrowings Net Cash from Financing Activities
Cash Flows from Investing Activities Receipts Investment and Interest Revenue Received Grants and Contributions - Capital Sale of Investment Securities Proceeds from Sale of Assets Payments Purchase of Investment Securities Capital Works and Purchase of Fixed Assets Net Cash from Investing Activities
Cash Flows from Operating Activities Receipts Rates and Annual Charges User Fees and Charges Grants and Contributions - Operating Bonds, Deposits and Retention amounts Received (Net) Other Increase in Bad Debt Provision Payments Employee Benefits and On-Costs Materials and Contracts Other Expenses Borrowing Costs Bonds, Deposits and Retention amounts Refunded Fair Value adjustment on Investment Property Net Cash from Operating Activities
Model 1 Statement of Cash Flows
114,002
120,047
(6,045)
0
(41,729) (15,558)
0
2,045 24,126
(69,512) (47,523) (26,159) 0 0 0 9,513
108,072 18,758 12,830 0 13,047 0
$ '000
ESTIMATE
2025/26
107,663
114,002
(6,339)
0
(41,750) (15,097)
0
1,948 24,705
(72,230) (48,027) (26,728) 0 0 0 8,758
110,236 19,211 13,104 0 13,192 0
$ '000
ESTIMATE
2026/27
101,206
107,663
(6,457)
0
(41,980) (14,852)
0
1,854 25,274
(74,000) (49,814) (26,797) 0 0 0 8,395
112,440 19,655 13,406 0 13,505 0
$ '000
ESTIMATE
2027/28
3
94,829
101,206
(6,377)
0
(42,000) (14,433)
0
1.711 25,856
(76,030) (50,977) (27,268) 0 0 0 8,056
114,690 20,106 13,715 0 13,820 0
$ '000
ESTIMATE
2028/29
99
< 30
%
Rates and Annual Charges as a % of Total Revenue %
%
Rate of Inflation
Interest Rate on investments
%
Rate Pegging Limit
3.3%
53.7%
1.90%
2.30%
ACTUAL
Assumptions
0.5%
67.6%
5.2
100.5%
99.9%
54.5
11.0
-2%
1.0
45.1
1.9
84.3%
-6.8%
BUDGET
2019/20
0.6%
66.5%
3.9
96.3%
89.2%
58.0
50.0
5%
0.9
28.5
1.8
79.8%
-5.9%
BUDGET
2020/21
0.6%
65.6%
3.8
100.9%
104.1%
53.0
35.0
1%
0.8
25.1
1.6
79.5%
-8.3%
ESTIMATE
2021/22
0.6%
64.9%
3.5
100.6%
102.5%
50.0
25.0
2%
0.8
110.8
1.5
79.5%
-8.3%
ESTIMATE
2022/23
0.6%
64.1%
3.1
100.3%
102.6%
47.0
15.0
2%
0.8
No Debt
1.3
79.4%
-9.8%
ESTIMATE
2023/24
0.7%
63.3%
2.7
99.9%
101.0%
46.0
11.0
2%
0.7
No Debt
1.2
79.4%
-10.3%
2.5%
65.0%
2.00%
2.70%
BUDGET
1.5%
61.1%
2.02%
2.60%
BUDGET
1.3%
60.5%
2.27%
2.50%
ESTIMATE
1.5%
60.5%
2.52%
2.40%
ESTIMATE
1.5%
60.5%
2.52%
2.30%
ESTIMATE
1.5%
60.6%
2.50%
2.20%
ESTIMATE
2025/26
0.7%
62.5%
2.0
100.4%
99.9%
44.0
11.0
2%
0.7
No Debt
1.0
79.3%
-12.2%
ESTIMATE
2025/26
1.5%
60.5%
2.49%
2.10%
ESTIMATE
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2019/20 2020/21 2021/22 2022/23 2023/242020/2021 2024/25
0.6%
71.9%
6.2
101.3%
2018/19
1%
> 60%
35.3
11.7
5%
1.0
27.3
99.8%
Model 1
Repairs & Maintenance as a % of WDV of Assets
(Expressed as a % of Gross Cost of Assets)
Remaining useful Life of Assets
(Measures Council's Cash coverage of Expenditure)
Cash Coverage Ratio
> 3 Mths
> = 100%
(Measures Council's Collection Rate of Debtors)
> = 100%
Debtor Collection Rate - Rates
Debtor Collection Rate - Other Debtors (net of Rates)
(Measures Council's management of Debtors)
< 30
Debtor Days Outstanding - Rates
> 0%
> =1.0x
Debtor Days Outstanding - Other Debtors (net of Rates)
(Measures Council's increase of own source revenue)
Own Source Revenue Growth
(Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge)
Capital Works & Asset renewals
(Measures Council's capacity to service debt)
Debt Service Cover Ratio
> 2.0x
3.7
> 1.5x
Unrestricted Current Ratio
(Measures Council's liquidity)
72.5%
-2.9%
ACTUAL
2018/19
> 80%
0%
Benchmark
(Measures the extent of Council's Revenue (net of Capital Grants) coverage of Expenditure) Own Source Revenue Generated (w/o Grant income) (Measures Council's dependence on Grants income)
Operating Performance Ratio
Key Performance Indicators
Model 1
1.5%
60.5%
2.40%
2.00%
ESTIMATE
2026/27
0.7%
61.6%
1.3
100.1%
99.9%
43.0
11.0
2%
0.7
No Debt
0.8
79.3%
-13.4%
ESTIMATE
2026/27
1.5%
60.4%
2.30%
2.00%
ESTIMATE
2027/28
0.7%
60.7%
0.6
100.1%
99.9%
42.0
11.0
2%
0.6
No Debt
0.5
79.2%
-13.6%
ESTIMATE
2027/28
1.5%
60.4%
2.30%
2.00%
ESTIMATE
4 2028/29
0.7%
59.7%
(0.1)
100.0%
99.9%
41.0
11.0
2%
0.6
No Debt
0.3
79.2%
-14.6%
ESTIMATE
2028/29
100
Georges River Council // Long Term Financial Plan 2020/21 $ '000
%
Depreciation as a % of Gross Cost of Assets
Capital Works Program
%
Employee Costs as a % of Total Expenditure
$ '000
%
Interest Rate on investments
Interest payments on loans
%
Rates and Annual Charges as a % of Total Revenue
$ '000
%
Rate of Inflation
Loans outstanding
%
Rate Pegging Limit
68,530
74
1,625
1.7%
40.3%
3.3%
53.7%
1.90%
2.30%
ACTUAL
Assumptions
38,370
55
625
1.8%
40.0%
1.5%
61.1%
2.02%
2.60%
BUDGET
2021/22
35,000
22
125
1.9%
40.2%
1.3%
60.5%
2.27%
2.50%
2022/23
35,000
0
0
1.9%
40.3%
1.5%
60.5%
2.52%
2.40%
2023/24
35,000
0
0
1.9%
40.6%
1.5%
60.5%
2.52%
2.30%
2024/25
0.7%
35,000
0
0
1.9%
40.6%
1.5%
60.6%
2.50%
2.20%
ESTIMATE
0.6%
ESTIMATE
0.6%
ESTIMATE
0.6%
ESTIMATE
0.6%
Georges River Council DRAFT Resourcing Strategy 2020/2021
45,057
71
1,125
1.7%
41.7%
2.5%
65.0%
2.00%
2.70%
BUDGET
2020/21
0.5%
2019/20
0.6%
2018/19
1%
Model 1
Repairs & Maintenance as a % of WDV of Assets
35,000
0
0
2.0%
40.4%
1.5%
60.5%
2.49%
2.10%
ESTIMATE
2025/26
0.7%
35,000
0
0
2.0%
40.8%
1.5%
60.5%
2.40%
2.00%
ESTIMATE
2026/27
0.7%
35,000
0
0
2.0%
40.7%
1.5%
60.4%
2.30%
2.00%
ESTIMATE
2027/28
0.7%
5
35,000
0
0
2.0%
40.7%
1.5%
60.4%
2.30%
2.00%
ESTIMATE
2028/29
0.7%
101
551
113,652 (3,270)
Result Net of Capital Grants – Surplus/(Deficit)
80,618
(3,225)
18,141
5,000
13,141
(55)
(24,014)
37,210
(124,537)
(23,109)
(41,928)
(59,500)
161,747
11,355
21,366
11,360
2,190
16,657
98,819
$ '000
BUDGET
2020/21
(9,468)
12,383
12,383
(22)
(24,895)
37,300
(128,502)
(24,200)
(42,623)
(61,679)
165,802
11,613
21,851
11,617
2,446
17,034
101,241
$ '000
ESTIMATE
2021/22
(7,096)
15,306
15,306
(2)
(26,135)
41,443
(130,957)
(23,888)
(43,698)
(63,371)
172,400
11,906
22,402
11,909
2,533
17,464
106,186
$ '000
ESTIMATE
2022/23
(6,582)
16,384
16,384
(27,413)
43,797
(135,279)
(24,648)
(44,798)
(66,035)
179,076
12,206
22,966
12,209
2,423
17,903
111,369
$ '000
ESTIMATE
2023/24
(4,448)
19,092
19,092
0
(28,691)
47,783
(138,336)
(24,648)
(45,918)
(67,770)
186,119
12,511
23,540
12,514
2,403
18,350
116,801
$ '000
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
(7,944)
6,124
1,061
5,063
(71)
32,483
(74)
25,765 (20,631)
52,114
(120,256)
(19,557)
Net Surplus/(Deficit)
Adjustment on amalgamation
Other adjustments / Revaluation
Net gains/(losses) from Disposal of Assets
Prior year adjustments
Net Operating Result for period - Surplus/(Deficit)
Financing costs (Interest Expenses)
Depreciation
Surplus/(Deficit) prior to Depreciation & Financing Costs
(120,568)
(21,935)
Total Operating Expenditure
Other Expenses
(21,606)
(58,730) (39,591)
(56,508) (42,454)
Employee Costs
Materials and Contracts
Operating Expenditure
146,021
9,175
172,682
11,871
Total Operating Revenue
Other revenues
14,068
36,304
Grants and Contributions - Capital
8,877
11,153
3,426
15,496
5,891
14,679
$ '000
$’000 94,979
BUDGET
ACTUAL
92,784
2019/20
2018/19
Grants and Contributions - Operating
Interest and investment revenue
User Charges and Fees
Rates and Annual Charges
Operating Revenue
Model 2 Income Statement
Model 2 – Multi-year permanent Special Rate Variation of 5.8% each year for 5 years from 2021/22
(4,032)
20,094
20,094
0
(29,979)
50,073
(143,506)
(26,362)
(47,062)
(70,082)
193,579
12,823
24,126
12,826
2,500
18,808
122,496
$ '000
ESTIMATE
2025/26
(5,670)
19035
19,035
0
(31,286)
50,321
(147,495)
(26,369)
(48,192)
(72,934)
197,816
13,130
24,705
13,133
2,642
19,261
124,945
$ '000
ESTIMATE
2026/27
(5,909)
19,365
19,365
0
(32,601)
51,966
(150,112)
(26,462)
(49,301)
(74,349)
202,078
13,433
25,274
13,435
2,790
19,703
127,443
$ '000
ESTIMATE
2027/28
6
(7,439)
18,417
18,417
0
(33,929)
52,346
(154,089)
(27,073)
(50,436)
(76,580)
206,435
13,742
25,856
13,745
2,945
20,156
129,991
$ '000
ESTIMATE
2028/29
102
Georges River Council // Long Term Financial Plan 2020/21
(1,419,106) (103,712)
(1,522,818)
Total Equity
1,522,818
(1,528,942)
(1,425,230) (103,712)
1,528,942
(38,129)
(625)
(1,125) (40,406)
(625)
(20,318) (596) (500) (16,090) (37,504)
1,567,071
1,393,139 17,660 1,975 1,412,774
(1,125)
EQUITY Retained Earnings Revaluation Reserve
Net Assets
Total Liabilities
Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities
(23,468) (596) (500) (14,717) (39,281)
1,563,224
Total Assets
LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities
1,366,713 17,660 1,362 1,385,735
143,338 10,479 (290) 185 585 154,297
$ '000
$’000
166,710 10,707 (538) 155 455 177,489
2019/20 BUDGET
2018/19 ACTUAL
Non-Current Assets Property, Plant & Equipment Investment Property Intangible Assets Total Non-Current Assets
ASSETS Current Assets Cash, Cash Equivalents & Investments Receivables - Gross Less: Provision for Impairment Inventories Other Total Current Assets
Model 2 Statement of Financial Position 2020/21
2021/22
(1,557,466)
(1,455,754) (103,712)
1,559,466
(37,057)
0
0
(20,283) (596) (125) (16,053) (37,057)
1,596,523
1,425,004 17,660 2,816 1,445,480
131,578 19,054 (368) 194 585 151,043
$ '000
ESTIMATE
2022/23
(1,594,772)
(1,471,060) (103,712)
1,574,772
(35,923)
0
0
(19,701) (596) 0 (15,626) (35,923)
1,610,695
1,439,530 17,660 3,655 1,460,845
133,163 16,271 (368) 199 585 149,850
$ '000
ESTIMATE
2023/24
(1,591,156)
(1,487,444) (103,712)
1,591,156
(36,026)
0
0
(19,147) (596) 0 (16,283) (36,026)
1,627,182
1,452,928 17,660 4,344 1,474,932
138,471 13,358 (368) 204 585 152,250
$ '000
ESTIMATE
2024/25
(1,610,248)
(1,506,536) (103,712)
1,610,248
(36,368)
0
0
(19,062) (596) 0 (16,710) (36,368)
1,646,616
1,465,198 17,660 4,883 1,487,741
146,081 12,368 (368) 209 585 158,875
$ '000
ESTIMATE
Georges River Council DRAFT Resourcing Strategy 2020/2021
(1,547,083)
(1,443,371) (103,712)
1,547,083
(36,335)
(125)
(125)
(19,628) (596) (500) (15,486) (36,210)
1,583,418
1,409,388 17,660 1,827 1,428,875
130,661 23,475 (368) 190 585 154,543
$ '000
BUDGET
2025/26
(1,630,342)
(1,526,630) (103,712)
1,630,342
(36,706)
0
0
(18,830) (596) 0 (17,280) (36,706)
1,667,048
1,476,342 17,660 5,510 1,499,512
154,793 12,312 (368) 214 585 167,536
$ '000
ESTIMATE
2026/27
(1,649,377)
(1,545,665) (103,712)
1,649,377
(37,221)
0
0
(18,641) (596) 0 (17,984) (37,221)
1,686,598
1,486,354 17,660 5,962 1,509,976
163,833 12,353 (368) 219 585 176,622
$ '000
ESTIMATE
2027/28
(1,668,742)
(1,565,030) (103,712)
1,668,742
(36,747)
0
0
(17,818) (596) 0 (18,333) (36,747)
1,705,489
1,495,239 17,660 6,476 1,519,375
173,295 12,378 (368) 224 585 186,114
$ '000
ESTIMATE
2028/29
7
(1,687,159)
(1,583,447) (103,712)
1,687,159
(36,566)
0
0
(17,087) (596) 0 (18,883) (36,566)
1,723,725
1,502,996 17,660 6,790 1,527,446
183,359 12,474 (368) 229 585 196,279
$ '000
ESTIMATE
103
(57,357) (40,095) (24,141) (71) 0
(57,877) (42,989) (19,448) (74) 0 140 9,529
(48,972) (28,859)
(70,245) (24,355)
(15,326) 182,036 166,710
Cash and Cash Equivalents - End of the Year
2020/21
2021/22
130,661
(12,677) 143,338
(500) (500)
(40,529) (11,541)
5,000
131,578
917 130,661
(500) (500)
(41,386) (17,159)
0
2,376 21,851
0 18,576
0 (636)
2,622 21,366
(61,112) (42,504) (23,782) (22)
105,070 17,038 11,621 0 12,267 0
$ '000
ESTIMATE
(60,104) (42,059) (23,259) (55)
88,144 16,527 11,088 0 9,004 78
$ '000
BUDGET
2022/23
133,163
1,585 131,578
(125) (125)
(41,500) (16,520)
0
2,578 22,402
0 18,230
(63,798) (43,511) (24,662) (2)
108,621 17,417 11,910 0 12,255 0
$ '000
ESTIMATE
2023/24
138,471
5,308 133,163
0 0
(41,500) (16,017)
0
2,517 22,966
0 21,325
(65,378) (45,221) (24,582) 0
114,065 17,855 12,211 0 12,375 0
$ '000
ESTIMATE
2024/25
146,081
7,610 138,471
0 0
(41,500) (15,487)
0
2,473 23,540
0 23,097
(67,343) (45,739) (24,917) 0
117,858 18,301 12,518 0 12,419 0
$ '000
ESTIMATE
Georges River Council DRAFT Resourcing Strategy 2020/2021
143,338
(23,372) 166,710
(500) (500)
1,763
3,443
(500) (500)
4,282 14,068
6,143 36,304
5,987
95,098 16,881 8,548 0 7,372 (248)
$ '000
$’000
92,586 13,325 11,644 238 11,736 248
2019/20 BUDGET
2018/19 ACTUAL
Net Increase / (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of the Year
Cash Flows from Financing Activities Receipts New Borrowings Payments Repayment of Borrowings Net Cash from Financing Activities
Cash Flows from Investing Activities Receipts Investment and Interest Revenue Received Grants and Contributions - Capital Sale of Investment Securities Proceeds from Sale of Assets Payments Purchase of Investment Securities Capital Works and Purchase of Fixed Assets Net Cash from Investing Activities
Cash Flows from Operating Activities Receipts Rates and Annual Charges User Fees and Charges Grants and Contributions - Operating Bonds, Deposits and Retention amounts Received (Net) Other Increase in Bad Debt Provision Payments Employee Benefits and On-Costs Materials and Contracts Other Expenses Borrowing Costs Bonds, Deposits and Retention amounts Refunded Fair Value adjustment on Investment Property Net Cash from Operating Activities
Model 2 Statement of Cash Flows 2025/26
154,793
8,712 146,081
0 0
(41,729) (15,053)
0
2,550 24,126
0 23,765
(69,512) (47,523) (26,159) 0
122,324 18,758 12,830 0 13,047 0
$ '000
ESTIMATE
2026/27
163,833
9,040 154,793
0 0
(41,750) (14,354)
0
2,691 24,705
0 23,394
(72,230) (48,027) (26,728) 0
124,872 19,211 13,104 0 13,192 0
$ '000
ESTIMATE
2027/28
173,295
9,462 163,833
0 0
(41,980) (13,860)
0
2,846 25,274
0 23,322
(74,000) (49,814) (26,797) 0
127,367 19,655 13,406 0 13,505 0
$ '000
ESTIMATE
2028/29
8
183,359
10,064 173,295
0 0
(42,000) (13,216)
0
2,928 25,856
0 23,280
(76,030) (50,977) (27,268) 0
129,914 20,106 13,715 0 13,820 0
$ '000
ESTIMATE
104
Georges River Council // Long Term Financial Plan 2020/21 < 30
Repairs & Maintenance as a % of WDV of Assets
(Expressed as a % of Gross Cost of Assets)
Remaining useful Life of Assets
(Measures Council's Cash coverage of Expenditure)
Cash Coverage Ratio
1%
> 60%
> 3 Mths
> = 100%
(Measures Council's Collection Rate of Debtors)
> = 100%
Debtor Collection Rate - Rates
Debtor Collection Rate - Other Debtors (net of Rates)
(Measures Council's management of Debtors)
< 30
Debtor Days Outstanding - Rates
> 0%
> =1.0x
Debtor Days Outstanding - Other Debtors (net of Rates)
(Measures Council's increase of own source revenue)
Own Source Revenue Growth
(Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge)
Capital Works & Asset renewals
(Measures Council's capacity to service debt)
Debt Service Cover Ratio
> 2.0x
0.6%
71.9%
6.2
101.3%
99.8%
35.3
11.7
5%
1.9
27.5
1.9
> 1.5x
Unrestricted Current Ratio
(Measures Council's liquidity)
72.5%
-2.8%
ACTUAL
2018/19
> 80%
0%
Benchmark
(Measures the extent of Council's Revenue (net of Capital Grants) coverage of Expenditure) Own Source Revenue Generated (w/o Grant income) (Measures Council's dependence on Grants income)
Operating Performance Ratio
Key Performance Indicators
Model 2
0.6%
66.5%
3.9
96.3%
89.2%
58.0
50.0
5%
0.9
28.5
1.8
79.8%
-5.9%
BUDGET
2020/21
0.6%
65.6%
4.0
100.9%
103.8%
53.0
35.0
3%
0.8
29.6
1.7
79.8%
-6.6%
ESTIMATE
2021/22
0.6%
64.9%
4.1
100.5%
102.3%
50.0
25.0
4%
0.8
149.9
1.7
80.1%
-4.7%
ESTIMATE
2022/23
0.6%
64.1%
4.4
100.3%
102.4%
47.0
15.0
4%
0.8
No Debt
1.8
80.4%
-4.2%
ESTIMATE
2023/24
0.7%
63.3%
4.9
99.9%
100.9%
47.0
11.0
4%
0.7
No Debt
1.9
80.6%
-2.7%
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
0.5%
67.6%
5.2
100.2%
100.1%
54.5
11.0
-2%
1.1
20.5
1.9
84.3%
-6.8%
BUDGET
2019/20
0.7%
62.5%
5.4
100.3%
99.9%
44.0
11.0
4%
0.7
No Debt
2.1
80.9%
-2.4%
ESTIMATE
2025/26
0.7%
61.6%
5.9
100.0%
99.9%
43.0
11.0
2%
0.7
No Debt
2.3
80.9%
-3.3%
ESTIMATE
2026/27
0.7%
60.7%
6.3
100.1%
99.9%
42.0
11.0
2%
0.6
No Debt
2.5
80.8%
-3.3%
ESTIMATE
2027/28
9
0.7%
59.7%
6.8
100.0%
99.9%
41.0
11.0
2%
0.6
No Debt
2.7
80.8%
-4.1%
ESTIMATE
2028/29
105
$ '000
Capital Works Program
%
Depreciation as a % of Gross Cost of Assets
$ '000
%
Employee Costs as a % of Total Expenditure
Interest payments on loans
%
Interest Rate on investments
$ '000
%
Rates and Annual Charges as a % of Total Revenue
Loans outstanding
%
Rate of Inflation
Gross SRV including Rate Peg
%
68,530
74
1,625
1.7%
40.3%
3.3%
53.7%
1.90%
2.3%
ACTUAL
Assumptions
Rate Pegging Limit
2018/19
Model 2
38,370
55
625
1.8%
40.0%
1.5%
61.1%
2.02%
2.6%
BUDGET
2020/21
35,000
22
125
1.9%
40.2%
1.3%
61.1%
2.27%
5.8%
2.5%
ESTIMATE
2021/22
35,000
2
0
1.9%
40.3%
1.5%
61.6%
2.52%
5.8%
2.5%
ESTIMATE
2022/23
35,000
0
0
1.9%
40.6%
1.5%
62.2%
2.52%
5.8%
2.5%
ESTIMATE
2023/24
35,000
0
0
1.9%
40.6%
1.5%
62.8%
2.50%
5.8%
2.5%
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
45,057
71
1,125
1.7%
41.7%
2.5%
65.0%
2.00%
2.7%
BUDGET
2019/20
35,000
0
0
2.0%
40.4%
1.5%
63.3%
2.49%
5.8%
2.5%
ESTIMATE
2025/26
35,000
0
0
2.0%
40.8%
1.5%
63.2%
2.40%
2.0%
ESTIMATE
2026/27
35,000
0
0
2.0%
40.7%
1.5%
63.1%
2.30%
2.0%
ESTIMATE
2027/28
10
35,000
0
0
2.0%
40.7%
1.5%
63.0%
2.30%
2.0%
ESTIMATE
2028/29
106
Georges River Council // Long Term Financial Plan 2020/21 (58,730)
113,652
(3,270)
Result Net of Capital Grants – Surplus/(Deficit)
80,618
551
32,483
(3,225)
18,141
5,000
13,141
(55)
(24,014)
37,210
(124,537)
(23,109)
(41,928)
(59,500)
161,747
11,355
21,366
11,360
2,190
16,657
98,819
$ '000
BUDGET
2020/21
(4,444)
17,407
17,407
(22)
(24,895)
42,324
(123,502)
(23,200)
(40,623)
(59,679)
165,826
11,613
21,851
11,617
2,470
17,034
101,241
$ '000
ESTIMATE
2021/22
3,154
25,556
25,556
(2)
(26,135)
51,693
(120,832)
(21,863)
(39,648)
(59,321)
172,525
11,906
22,402
11,909
2,658
17,464
106,186
$ '000
ESTIMATE
2022/23
6,084
29,050
29,050
(27,413)
56,463
(122,898)
(21,870)
(39,896)
(61,132)
179,361
12,206
22,966
12,209
2,708
17,903
111,369
$ '000
ESTIMATE
2023/24
8,719
32,259
32,259
0
(28,691)
60,950
(125,645)
(22,007)
(40,893)
(62,745)
186,595
12,511
23,540
12,514
2,879
18,350
116,801
$ '000
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
(7,944)
6,124
1,061
5,063
(71)
(20,631)
(19,557) (74)
25,765
(120,256)
(21,935)
(39,591)
52,114
Net Surplus/(Deficit)
Adjustment on amalgamation
Other adjustments / Revaluation
Net gains/(losses) from Disposal of Assets
Prior year adjustments
Net Operating Result for period - Surplus/(Deficit)
Financing costs (Interest Expenses)
Depreciation
Surplus/(Deficit) prior to Depreciation & Financing Costs
(120,568)
(21,606)
Other Expenses
Total Operating Expenditure
(56,508) (42,454)
Employee Costs
Materials and Contracts
Operating Expenditure
146,021
9,175
172,682
11,871
Total Operating Revenue
Other revenues
14,068
36,304
Grants and Contributions - Capital
8,877
11,153
3,426
15,496
5,891
14,679
$ '000
$’000 94,979
BUDGET
ACTUAL
92,784
2019/20
2018/19
Grants and Contributions - Operating
Interest and investment revenue
User Charges and Fees
Rates and Annual Charges
Operating Revenue
Model 3 Income Statement
9,653
33,779
33,779
0
(29,979)
63,758
(130,500)
(23,656)
(41,912)
(64,932)
194,258
12,823
24,126
12,826
3,179
18,808
122,496
$ '000
ESTIMATE
2025/26
8,538
33,243
33,243
0
(31,286)
64,529
(134,176)
(23,598)
(42,918)
(67,660)
198,705
13,130
24,705
13,133
3,531
19,261
124,945
$ '000
ESTIMATE
2026/27
8,825
34,099
34,099
0
(32,601)
66,700
(136,487)
(23,627)
(43,906)
(68,954)
203,187
13,433
25,274
13,435
3,899
19,703
127,443
$ '000
ESTIMATE
2027/28
2028/29
11
7,837
33,693
33,693
0
(33,929)
67,622
(140,151)
(24,173)
(44,917)
(71,061)
207,773
13,742
25,856
13,745
4,283
20,156
129,991
$ '000
ESTIMATE
Model 3 - Multi-year permanent Special Rate Variation of 5.8% each year for 5 years from 2021/22 plus projected Expenditure Savings of $12m over 3 years from 2021/22
107
(1,419,106) (103,712)
(1,522,818)
Total Equity
1,522,818
(1,528,942)
(1,425,230) (103,712)
1,528,942
(38,129)
(625)
(1,125) (40,406)
(625)
(20,318) (596) (500) (16,090) (37,504)
1,567,071
1,393,139 17,660 1,975 1,412,774
(1,125)
Retained Earnings Revaluation Reserve
EQUITY
Net Assets
Total Liabilities
Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities
(23,468) (596) (500) (14,717) (39,281)
1,563,224
Total Assets
LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities
1,366,713 17,660 1,362 1,385,735
143,338 10,479 (290) 185 585 154,297
$ '000
$’000
166,710 10,707 (538) 155 455 177,489
2019/20 BUDGET
2018/19 ACTUAL
Non-Current Assets Property, Plant & Equipment Investment Property Intangible Assets Total Non-Current Assets
ASSETS Current Assets Cash, Cash Equivalents & Investments Receivables - Gross Less: Provision for Impairment Inventories Other Total Current Assets
Model 3 Statement of Financial Position 2020/21
2021/22
(1,564,490)
(1,460,778) (103,712)
1,564,490
(35,798)
0
(19,544) (596) (125) (15,533) (35,798)
1,600,288
1,425,004 17,660 2,816 1,445,480
135,336 19,061 (368) 194 585 162,935
$ '000
ESTIMATE
2022/23
(1,590,046)
(1,486,334) (103,712)
1,590,046
(33,482)
0
(18,259) (596) 0 (14,627) (33,482)
1,623,528
1,439,530 17,660 3,655 1,460,845
145,966 16,301 (368) 199 585 140,073
$ '000
ESTIMATE
2023/24
(1,619,096)
(1,515,384) (103,712)
1,619,096
(33,129)
0
(17,459) (596) 0 (15,074) (33,129)
1,652,225
1,452,928 17,660 4,344 1,474,932
163,451 13,421 (368) 204 585 143,954
$ '000
ESTIMATE
2024/25
(1,651,355)
(1,547,643) (103,712)
1,651,355
(33,435)
0
(17,368) (596) 0 (15,471) (33,435)
1,684,790
1,465,198 17,660 4,883 1,487,741
184,164 12,459 (368) 209 585 161,644
$ '000
ESTIMATE
Georges River Council DRAFT Resourcing Strategy 2020/2021
(1,547,083)
(1,443,371) (103,712)
1,547,083
(36,335)
(125)
(125)
(19,628) (596) (500) (15,486) (36,201)
1,583,418
1,409,388 17,660 1,827 1,428,875
130,661 23,475 (368) 190 585 180,179
$ '000
BUDGET
2025/26
(1,685,134)
(1,581,422) (103,712)
1,685,134
(33,808)
0
(17,201) (596) 0 (16,011) (33,808)
1,718,942
1,476,342 17,660 5,510 1,499,512
206,575 12,424 (368) 214 585 184,637
$ '000
ESTIMATE
2026/27
(1,718,377)
(1,614,665) (103,712)
1,718,377
(34,290)
0
(17,011) (596) 0 (16,683) (34,290)
1,752,667
1,486,354 17,660 5,962 1,509,976
229,780 12,475 (368) 219 585 208,572
$ '000
ESTIMATE
2027/28
(1,752,476)
(1,648,764) (103,712)
1,752,476
(33,862)
0
(16,264) (596) 0 (17,002) (33,862)
1,786,338
1,495,239 17,660 6,476 1,519,375
254,023 12,499 (368) 224 585 233,409
$ '000
ESTIMATE
2028/29
12
(1,786,169)
(1,682,457) (103,712)
1,786,169
(33,731)
0
(15,613) (596) 0 (17,522) (33,731)
1,819,900
1,502,996 17,660 6,790 1,527,446
279,388 12,620 (368) 229 585 259,442
$ '000
ESTIMATE
108
Georges River Council // Long Term Financial Plan 2020/21 (57,357) (40,095) (24,141) (71) 0 0 5,987
(57,877) (42,989) (19,448) (74)
(48,972) (28,859)
(70,245) (24,355)
(15,326) 182,036 166,710
Cash and Cash Equivalents - End of the Year
130,661
(12,677) 143,338
(500) (500)
(40,529) (11,541)
5,000
2,622 21,366
(60,104) (42,059) (23,259) (55) 0 0 (636)
9,004 78
135,336
4,675 130,661
(500) (500)
(41,386) (17,142)
0
2,393 21,851
(59,632) (40,860) (23,165) (22) 0 0 22,317
12,267 0
0
105,070 17,038 11,621
$ '000
ESTIMATE
2021/22
145,966
10,630 135,336
(125) (125)
(41,500) (16,418)
0
2,680 22,402
(60,227) (39,826) (22,975) (2) 0 0 27,173
12,255 0
0
108,621 17,417 11,910
$ '000
ESTIMATE
2022/23
163,451
17,485 145,966
0
(41,500) (15,765)
0
2,769 22,966
(60,685) (40,404) (22,167) 0 0 0 33,250
12,375 0
0
114,065 17,855 12,211
$ '000
ESTIMATE
2023/24
184,164
20,713 163,451
0
(41,500) (15,039)
0
2,921 23,540
(62,348) (40,734) (22,262) 0 0 0 35,752
12,419 0
0
117,858 18,301 12,518
$ '000
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
143,338
(23,372) 166,710
(500) (500)
1,763
3,443
(500) (500)
4,282 14,068
6,143 36,304
140 9,529
0 7,372 (248)
238 11,736 248
0
$ '000
BUDGET
88,144 16,527 11,088
$ '000
$’000
2020/21
95,098 16,881 8,548
BUDGET
ACTUAL
92,586 13,325 11,644
2019/20
2018/19
Net Increase / (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of the Year
Cash Flows from Financing Activities Receipts New Borrowings Payments Repayment of Borrowings Net Cash from Financing Activities
Cash Flows from Investing Activities Receipts Investment and Interest Revenue Received Grants and Contributions - Capital Sale of Investment Securities Proceeds from Sale of Assets Payments Purchase of Investment Securities Capital Works and Purchase of Fixed Assets Net Cash from Investing Activities
Cash Flows from Operating Activities Receipts Rates and Annual Charges User Fees and Charges Grants and Contributions - Operating Bonds, Deposits and Retention amounts Received (Net) Other Increase in Bad Debt Provision Payments Employee Benefits and On-Costs Materials and Contracts Other Expenses Borrowing Costs Bonds, Deposits and Retention amounts Refunded Fair Value adjustment on Investment Property Net Cash from Operating Activities
Model 3 Statement of Cash Flows
206,575
22,411 184,164
0
(41,729) (14,395)
0
3,208 24,126
(64,392) (42,323) (23,438) 0 0 0 36,806
13,047 0
0
122,324 18,758 12,830
$ '000
ESTIMATE
2025/26
229,780
23,205 206,575
0
(41,750) (13,475)
0
3,570 24,705
(66,988) (42,772) (23,939) 0 0 0 36,680
13,192 0
0
124,872 19,211 13,104
$ '000
ESTIMATE
2026/27
254,023
24,243 229,780
0
(41,980) (12,750)
0
3,956 25,274
(68,635) (44,363) (23,942) 0 0 0 36,993
13,505 0
0
127,367 19,655 13,406
$ '000
ESTIMATE
2027/28
13
279,388
25,365 254,023
0
(42,000) (11,903)
0
4,241 25,856
(70,541) (45,399) (24,347) 0 0 0 37,268
13,820 0
0
129,914 20,106 13,715
$ '000
ESTIMATE
2028/29
109
< 30
Cash Coverage Ratio
Repairs & Maintenance as a % of WDV of Assets
(Expressed as a % of Gross Cost of Assets)
Remaining useful Life of Assets
(Measures Council's Cash coverage of Expenditure)
1%
> 60%
> 3 Mths
> = 100%
(Measures Council's Collection Rate of Debtors)
> = 100%
Debtor Collection Rate - Rates
Debtor Collection Rate - Other Debtors (net of Rates)
(Measures Council's management of Debtors)
< 30
Debtor Days Outstanding - Rates
> 0%
> =1.0x
Debtor Days Outstanding - Other Debtors (net of Rates)
(Measures Council's increase of own source revenue)
Own Source Revenue Growth
(Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge)
Capital Works & Asset renewals
(Measures Council's capacity to service debt)
Debt Service Cover Ratio > 2.0x
> 1.5x
Unrestricted Current Ratio
(Measures Council's liquidity)
> 80%
0%
Benchmark
(Measures the extent of Council's Revenue (net of Capital Grants) coverage of Expenditure) Own Source Revenue Generated (w/o Grant income) (Measures Council's dependence on Grants income)
Operating Performance Ratio
Key Performance Indicators
Model 3
0.6%
71.9%
6.2
101.3%
99.8%
35.3
11.7
5%
1.9
27.5
1.9
72.5%
-2.8%
ACTUAL
2018/19
0.6%
66.5%
3.9
96.3%
89.2%
58.0
50.0
5%
0.9
28.5
1.8
79.8%
-5.9%
BUDGET
2020/21
0.6%
65.6%
4.5
100.9%
103.8%
53.0
35.0
3%
0.8
39.2
1.8
79.8%
-3.1%
ESTIMATE
2021/22
0.6%
64.9%
5.7
100.5%
102.3%
50.0
25.0
4%
0.8
230.6
2.2
80.1%
2.1%
ESTIMATE
2022/23
0.6%
64.1%
7.3
100.3%
102.4%
47.0
15.0
4%
0.8
No Debt
2.7
80.4%
3.9%
ESTIMATE
2023/24
0.7%
63.3%
9.1
99.9%
100.9%
47.0
11.0
4%
0.7
No Debt
3.2
80.7%
5.3%
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
0.5%
67.6%
5.2
100.2%
100.1%
54.5
11.0
-2%
1.1
20.5
1.9
84.3%
-6.8%
BUDGET
2019/20
0.7%
62.5%
10.7
100.3%
99.9%
44.0
11.0
4%
0.7
No Debt
3.8
81.0%
5.7%
ESTIMATE
2025/26
0.7%
61.6%
12.3
100.0%
99.9%
43.0
11.0
2%
0.7
No Debt
4.4
81.0%
4.9%
ESTIMATE
2026/27
0.7%
60.7%
14.1
100.1%
99.9%
42.0
11.0
2%
0.6
No Debt
5.1
80.9%
5.0%
ESTIMATE
2027/28
14
0.7%
59.7%
15.7
99.9%
99.9%
41.0
11.0
2%
0.6
No Debt
5.8
80.9%
4.3%
ESTIMATE
2028/29
110
Georges River Council // Long Term Financial Plan 2020/21 %
Depreciation as a % of Gross Cost of Assets
$ '000
%
Employee Costs as a % of Total Expenditure
Capital Works Program
%
Interest Rate on investments
$ '000
%
Rates and Annual Charges as a % of Total Revenue
Interest payments on loans
%
Rate of Inflation
$ '000
%
Gross SRV (including Rate Peg)
Loans outstanding
%
$ '000
74
1,625
1.7%
40.3%
3.3%
53.7%
1.90%
2.3%
ACTUAL
Assumptions
Rate Pegging Limit
2018/19
Model 3
45,057
55
625
1.8%
40.0%
1.5%
61.1%
2.02%
2.6%
BUDGET
2020/21
38,370
22
125
1.9%
40.2%
1.3%
61.1%
2.27%
5.8%
2.5%
ESTIMATE
2021/22
35,000
2
0
1.9%
40.4%
1.5%
61.5%
2.52%
5.8%
2.5%
ESTIMATE
2022/23
35,000
0
0
1.9%
40.7%
1.5%
62.1%
2.52%
5.8%
2.5%
ESTIMATE
2023/24
35,000
0
0
1.9%
40.7%
1.5%
62.6%
2.50%
5.8%
2.5%
ESTIMATE
2024/25
Georges River Council DRAFT Resourcing Strategy 2020/2021
68,530
71
1,125
1.7%
41.7%
2.5%
65.0%
2.00%
2.7%
BUDGET
2019/20
35,000
0
0
2.0%
40.5%
1.5%
63.1%
2.49%
5.8%
2.5%
ESTIMATE
2025/26
35,000
0
0
2.0%
40.9%
1.5%
62.9%
2.40%
2.0%
ESTIMATE
2026/27
35,000
0
0
2.0%
40.8%
1.5%
62.7%
2.30%
2.0%
ESTIMATE
2027/28
15
35,000
0
0
2.0%
40.8%
1.5%
62.6%
2.30%
2.0%
ESTIMATE
2028/29
111
RESOURCING STRATEGY 2020/21 www.georgesriver.nsw.gov.au