Resourcing Strategy 2022/2023

Resourcing Strategy 2022-2023

Workforce Management Plan Digital Resource Management Plan Asset Management Plan Long Term Financial Plan

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Georges River Council // Resourcing Strategy 2022/23

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Contents 5 5 6 7 9 9 10 12 14 16 17 18 20

Acknowledgement of Country

22 23

Digital Resource Management Plan

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Key themes of Council’s Digital Resource Management Plan

28 29 32 34 35

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Our vision, mission and values Introduction Resourcing Strategy Workforce Management Plan What is the Workforce Management Plan?

Who are our people?

Our organisational structure Our Workforce Demographics Our Challenges What are our priorities?

Implementation, Monitoring and Review How will we measure the success of our people plan?

What is the Digital Resource Management Plan?

How will we get there?

Where are we now?

What are our priorities?

Implementation, Monitoring and Review Digital Resource Management Action Plan

Georges River Council // Resourcing Strategy 2022/23

39 39 40 41 44 46 49 52 54 54 57 58 59 60

Asset Management Plan

61 64 67

Local Infrastructure Contribution Projects

What is the Asset Management Plan?

What have we learnt?

Where are we now?

Where do we want to be?

Desired levels of service Implementation, Monitoring and Review How will we get there?

Asset Management Improvement Plan Long Term Financial Plan Executive Summary Financial Governance and Principles Sustainability and Affordability Challenges Productivity and Cost Containment Strategies Forecasting and Assumption Statement Financial Models Overview

Acknowledgement Our vision, mission and of Country values Georges River Council acknowledges the Bidjigal people of the Eora Nation, who are the traditional inhabitants and custodians of all land, water and sky in the Georges River area. We pay our respects to their Elders past, present and emerging.

Council recognises that the Georges River, with its rich resources, natural setting and connections to Country, is a place where people traditionally gathered, and Council is committed to upholding this.

Georges River Council acknowledges that our future will always be informed by our past. We are committed to respecting Aboriginal and Torres Strait Islanders as Australia's First Nations People. We have adopted the practice of acknowledging the Traditional Custodians of Country at events, ceremonies, meetings and functions. The Georges River First Nations Advisory Group provides a link between Georges River Council and the local Aboriginal and Torres Strait Islander community, respecting their right to self-determination and community

Our Vision

A progressive, environmentally and culturally rich community enjoying a unique lifestyle.

Our Mission

A leading, people-focused organisation delivery outstanding results for our community and city.

Our 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.

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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 2022-2032 (The Plan).

This Resourcing Strategy has been developed alongside our revised Community Strategic Plan (The Plan), which is based on community engagement during 2021.

Background – Legislative Framework

The Community Strategic Plan 2022-2032 contains the community’s priorities and aspirations as well as the strategies for achieving these goals.

Like all Councils, Georges River Council operates under the Local Government Act 1993 (the Act).

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 plan for the future strategically and holistically.

Our Delivery Program sets out the proposed actions to achieve the goals and strategies in the Community Strategic Plan. The Delivery Program runs for four years to align with the local government election cycle. We are now commencing the first year of our Delivery Program.

We have also prepared a one-year Operational Plan to show the specific actions and budgets that we propose for 2022/23, consistent with the Delivery Program.

COMMUNITY STRATEGIC PLAN 10 + YEARS

COMMUNITY ENGAGEMENT

DELIVERY PROGRAM 4 YEARS

Our 6 Pillars 1. Our community 2. Our green environment 3. Our economy 4. Our built environment 5. Our place in Sydney 6. Our governance

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OPERATIONAL PLAN 1 YEAR

ANNUAL REPORT

Georges River Council // Resourcing Strategy 2022/23

RESOURCING STRATEGY Contains the Workforce Management Plan, Digital Resource Management Plan, Asset Management Plan and Long Term Financial Plan

PERPETUAL MONITORING AND REVIEW

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.

Asset Management Plan

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.

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 Plan 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.

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Workforce Management Plan

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Georges River Council // Resourcing Strategy 2022/23

What is the Workforce Management Plan?

This Workforce Management Plan, ‘Our People Plan’ is an important part of Council’s Resourcing Strategy, implemented alongside the: •

Digital Resource Management Plan

•

Asset Management Plan, and

•

Long Term Financial Plan.

Our People Plan outlines our commitment to leading people practices, ensuring that we have the capacity and capability to deliver positive outcomes, based on current and future organisational and community needs.

This Plan identifies objectives and strategies that focus on employee experience, engagement, and excellence. It aims to cultivate a workforce that is inspired, inclusive and involved to steer towards Georges River Council as an employer of choice.

This Plan builds on the solid foundation achieved through the life of the previous workforce management planning cycle, where we successfully focussed on: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Capability mobility Continuous learning Flexible resource allocation Information management Iterative business improvement processes Talent management Open physical and virtual environment Partnerships and networking Performance centric Technology, systems, and tools

While we recognise there is more work to do to build on these focus areas, the fundamentals are in place to support continued progress.

Our People Plan 2022-2026 will consolidate our efforts to align with the below key strategic themes, which have been established through consultation with our people, people leaders, 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.

Purpose Embedding our values and working towards a common, greater goal so our people feel inspired and are aligned to deliver on our commitments to our community.

Connection Enhancing relationships across the organisation and with the community so our people feel understood and are positive contributors in all aspects of their lives.

Inclusion Fostering inclusion so our people feel a sense of belonging and are actively embracing our diversity in their thinking and decision making.

Support Providing mechanisms that support a safe, healthy, happy, and more productive and engaged workforce, so our people feel cared for and are resilient in times of change.

Growth Developing a culture of learning and excellence so our people feel valued and are continually improving the way we work to sustain a high performing workforce and have opportunity to progress their careers at Georges River Council.

Actions to support these themes are outlined in subsequent sections. Council’s People and Culture team will actively support and work to implement the actions.

Our People Plan will evolve as the community and the organisation reviews and evaluates its needs. At a minimum, it will be reviewed annually alongside our Operational Plan to ensure its objectives reflect the changing workforce, community and Council priorities.

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Who are our people?

Georges River Council is an organisation made up of a committed, talented, and diverse workforce. Our vision, mission and values underpin all that we do to successfully achieve our Community Strategic Plan (CSP) and implement our Delivery and Operational Plans.

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Georges River Council // Resourcing Strategy 2022/23

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Our organisational structure Our people are committed to delivering quality outcomes for our community which is championed and driven by leaders in six permanent directorates and one temporary directorate:

General Manager

Office of the General Manager

Community and Culture Directorate

Business and Corporate Services Directorate

Environment and Planning Directorate

Assets and Infrastructure Directorate

Legal Services

Executive Manager Office of the GM

Director Community and Culture

Director Business and Corporate Services

Director Environment and Planning

Director Assets and Infrastructure

Director Legal Services General Counsel

Head of City Strategy and Marketing

Manager City Life

Chief People Officer

Manager Development and Building

Executive Manager City Operational Services

Senior Solicitor

Coordinator Communications and Engagement

Manager Cultural Engagement and Library Services

Chief Information Officer

Manager Strategic Planning

Manager Premium Facilities

Chief Audit Executive

Manager Community and Early Learning Centres

Chief Financial Officer

Manager Environment, Health and Regulatory Services

Manager Strategic Placemaking

Head of Corporate Governance and Risk

Head of Strategic Property

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Georges River Council // Resourcing Strategy 2022/23

Manager City Technical Services

Office of the General Manager

Assets and Infrastructure

Our Office of the General Manager manages Council and Committee meetings. They are responsible for organising briefings and workshops offered to our Councillors, communicating and engaging with our community, and ensuring our compulsory reporting requirements are met.

Our Assets and Infrastructure directorate is responsible for leading, planning, delivering, and maintaining assets, facilities, and infrastructure in Georges River Council.

• •

•

City Operational Services

•

City Technical Services

Executive Services

•

Premium Facilities

Communications and Engagement

•

Strategic Placemaking

Community and Culture

Office of the General Counsel

Our Community and Culture directorate works in partnership with the community to ensure it is social and culturally connected. Our teams provide diverse and vibrant programs, services and facilities that bring together communities, deliver cultural and creative engagement opportunities and support the informational needs of our community.

Our Office of the General Counsel is responsible for the management of Council’s legal function. This includes running matters in the Land & Environment Court, Local Court and other tribunals and jurisdictions. The team also provides training and advice to Council business units on a variety of legal matters.

•

Community and Early Learning Services

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Cultural Engagement and Library Services

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City Life – Customer Experience Operations

Business and Corporate Services Our Business and Corporate Services directorate is responsible for delivering quality organisational support services that meet current and emerging needs of internal and external customers to enable effective forward planning and to deliver Council’s strategic initiatives.

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Information Management Technology

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Finance

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People and Culture

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Governance and Risk Management

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Commercial Property

City Strategy and Innovation Our City Strategy and Innovation directorate’s focus is to position the Georges River area and the Council as a strong and influential entity in both the Sydney metropolitan region and in New South Wales through branding, extending networks, partnerships and transformation projects across the community.

Environment and Planning Our Environment and Planning directorate oversee and administers policies, systems, practices, and deliverables relating to the built environment and landscapes within the Georges River area and the Council.

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Environmental Health and Regulatory Services

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Development Assessment and Building Certification

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Strategic Planning

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Our Workforce Demographics Data available as at 31 March 2022 We continuously seek, capture, and analyse key demographic traits of our workforce, with the understanding that this data is important in reviewing and evolving Our People Plan.

Consisting of permanent, temporary and casual staff, our head count workforce is

663 staff with a current FTE of 537.62

Our workforce is a mix of local and non-local employees with of staff living within our Local Government Area.

Approximately

33%

25% of our staff hold management or leadership roles and 75%

are in operational positions.

51% females and 49% males are almost equally represented in Council’s workforce; however, 64% females account for the largest percentage of employees

in management positions

We face the challenges of an ageing workforce (24% of employees are 55 or over).

65% of our workforce were born between 1961 and 1984, with 25% born

between 1985 and 2002, indicating a wide spread of represented age groups.

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Georges River Council // Resourcing Strategy 2022/23

Category

Subcategory

Count

Percentage %

Current FTE (excluding casuals)

537.62

-

Head Count (excluding casuals)

585

-

Permanent

544

93.0%

Temporary

41

7.0%

Casual Staff

78

-

Male Workforce

276

47.0%

Female Workforce

309

53.0%

7

35.0%

Females in Management

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65.0%

19-29

78

13.3%

30-39

123

21.0%

40-49

146

25.0%

50-59

165

28.2%

60-69

69

11.8%

70 +

4

0.7%

Less than 5km distance

87

21.4%

Distance travelled to work

6km to 10km distance

99

24.4%

**based on Staff Engagement Survey 2021 data (406 responses)

11km to 15km distance

65

16.0%

16km to 20km distance

41

10.0%

21km + distance

70

17.2%

Did not specify

44

10.8%

-

18.9%

315

53.8%

5 to 9 years

93

15.9%

10 to 14 years

66

11.3%

15 to 19 years

53

9.1%

20 + years

58

9.9%

% of staff with a disability

-

-

% Aboriginal or Torres Strait Islander

1

-

% Language other than English at home

28

3.4%

% Culturally diverse

40

6.8%

Establishment

Employees by status

Gender

Age

Turnover

Males in Management

Annualised Turnover Less than 5 years

Length of service

Diversity and inclusion

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Our Challenges Focus on Financial Sustainability Council’s long term financial plan had a forecasted budget deficit of $12 million. The adopted budget deficit for 2021/22 was $4.5 million. This reduction was achieved via a Special Rate Variation (SRV), budget saving strategies and the deferral of projects.

The application for a SRV to IPART in 2021 required Council to identify $4 million worth of savings and productivity efficiencies every year from 2022 to 2024.The employee costs strategy adopted by Council is a significant contributor in achieving these savings.

The employee costs strategy included: •

Absorbing the mandated annual Local Government (State) Award increase.

•

Recruitment holding period of 16-week salary savings prior to appointment.

•

Maintaining a vacancy rate of 7% across all areas of Council.

•

Christmas shut-down period.

•

Reduction of staff benefits such as the all-staff conference and learning and development program.

These cost saving measures will continue to impact our people given the limitations it imposes on people strategies and initiatives.

Skills Shortages and Attracting and Retaining Top Talent 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.

25% of our people are 55 years or older, meaning a high number of staff will consider retirement in the next 10 years. 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.

Results from the most recent staff survey also indicated that 21% of staff could not see a future at

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Georges River Council // Resourcing Strategy 2022/23

Georges River Council beyond two years, placing corporate knowledge, organisational capability, and operational efficiency further at risk.

In general, the overall market for attracting professionals is increasingly competitive as councils seek to source employees in markets where salaries are not comparable, employee benefits are difficult to match and experience in local government is niche. Existing areas of skills shortages and tight labour supply in jobs such as engineering, planning, compliance, early childhood, trades, and IT are likely to become even more constricted.

Lasting Impacts of COVID-19 The onset of the COVID-19 pandemic tested the responsiveness and agility of organisations around the world, uprooting traditional ways of working and accelerating digital service adoption.

Flexible work practices became the norm and as organisations face a return to physical work locations, people are seeking to maintain and explore more flexible arrangements. The rate of technological change has presented new skill development areas and expectations on the efficacy and reliance on digital infrastructure is becoming increasingly demanding both from employees and customers.

The experience of isolation from the workplace has also challenged organisational culture and connection. It is becoming more important for people strategies to embed wellbeing practices in day-today and long-term planning to ensure the health and safety of our people.

Whilst the concept of the great resignation did not permeate local government, what is becoming increasingly important for employees and job seekers, is the alignment of personal values and a sense of purpose from their work. This adds to the need for a clearly defined and unique Employee Value Proposition (EVP).

What are our priorities?

Achievements from the last four years Our previous Workforce Management Plan focussed on ten strategy areas that each had priority actions over the four-year period. These deliverables have addressed critical challenge areas such as addressing an ageing workforce through flexible work practices, creating a contemporary workplace following amalgamation, attracting, and retaining a diverse workforce, capability mobility and investing in skills.

The following outlines some of our key achievements that have been realised in each of the ten strategy areas of the 2017-2021 Workforce Management Plan: 1. Capability mobility Implemented temporary, planned mobility of employees across business areas to build capability and develop a more experienced and engaged workforce able to respond to the challenges of a changing industrial landscape, the shifting needs of our community, and Council’s directions.

2. Continuous learning Developed frameworks to support a dynamic workforce with the required tools and capabilities required to respond to rapid change.

3. Flexible resource allocation Established flexible mechanisms to mobilise resources in times of change to enable fast real time responses and maintain business continuity.

4. Information management Streamlined information management to ensure we collect the information we require, store it safely and intuitively, and share and analyse data to drive business decisions.

5. Iterative business improvement processes Engaged in continuous reviews of our systems, processes and procedures to realise opportunities for improvement.

6. Talent management Actively sought to attract, recruit, hire, and retain the most talented and superior employees, to contribute to our diverse workforce and further their careers in local government.

7. Open physical and virtual environment Created a fit-for-purpose environment that influences a positive workplace culture and supports work/life balance.

8. Partnerships and networking Encouraged internal and external stakeholder relationships to share knowledge and utilise skills to supplement expertise and accomplish mutual goals.

9. Performance centric Continually motivated our workforce through improved feedback mechanisms, role clarity and rewards and recognition programs.

10. Technology, systems, and tools Identified opportunities to invest in new technologies or to upgrade, streamline and perfect our systems and tools.

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Priorities for the next four years As a relatively new Council, we have made significant strides in establishing our workforce strategies.

For 2022-26, we continue to aspire to building a workforce that is inspired, diverse and engaged focusing on five priority pillars.

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Georges River Council // Resourcing Strategy 2022/23

Implementation, Monitoring and Review Implementing the People Plan Georges River Council recognises that we are only as good as our people and when their experience at work is good, they are more likely to feel engaged and productive, resulting in positive outcomes for our customers and the community. Workshops with our people, including people leaders and staff, have highlighted the following people experience focus areas, strategies, and actions over the next four years to ensure we deliver on our Community Strategic Plan; we offer our people interesting, challenging and rewarding work and opportunities to make a real difference to our community; and to support our goal to be the best at what we do and be an employer of choice.

YEAR 1 2022/23 Optimising Performance to empower our people to perform at their best and deliver on outcomes.

Cultural Shift to connect our people and realign our purpose and values to work together towards a common goal.

Leadership Development to inspire and lead our people through change and transformation.

Safe and Healthy Workplace for our people, from a holistic outlook for total wellbeing. Driving a healthier, happier, and more engaged and productive workforce.

Highly Capable People to continuously improve the way we work and sustain a culture of learning that provides opportunities to develop and progress in their careers at Council.

YEAR 2 2023/24 Talent Acquisition and Retention to drive greater diversity and ensure we have the right people in the right roles with the right capabilities.

Diverse and Inclusive Workplace that supports and develops great people from diverse backgrounds, ensuring our people feel valued and are showing up to work as their best self.

YEAR 3 2024/25 A Great Employee Experience to ensure our people are engaged throughout the entire employee lifecycle and promote Council as a great place to work.

Brand Reputation and our Employee Value Proposition (EVP) to promote what it means to be part of Council and enhance organisational pride and loyalty.

YEAR 4 2025/26 New Future Fit Workforce Strategy to engage with our people and community to determine priorities for the next four years.

Employer of Choice to recognise our Council as a great place to work.

Active Collaboration to leverage expertise across key projects, expand talent mobility, facilitate knowledge exchange, and strengthen coaching/ mentoring.

Talent Management and Succession Planning to embed a framework and mechanisms to manage talent and career development.

Digital Empowerment to ensuring our people have the right technology to do their jobs and are skilled in the effective use of these tools.

Reimagining Flexibility to establish working arrangements that truly promote flexibility across our diverse workforce.

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How will we measure the success of our people plan?

Annual Staff Engagement Survey Our annual staff engagement survey, exChange Ideas, provides three key performance indicators of which we can measure the success of Our People Plan and gain insights into employee attitudes and perceptions.

Engagement, Progress and Wellbeing scores are determined based on responses to several questions focused on the following drivers: •

Purpose – the clarity which exists about your organisational identity. Are staff aware of senior management strategy and vision? Are staff committed to the values and mission of the organisation?

•

Production – the extent to which staff feel they have the infrastructure and resources they need to do their jobs. How well are staff able to maintain peace by managing stress, achieving work-life balance, and working flexibly.

•

•

Participation – relates to staff feeling about how they are managed, the extent to which they receive development opportunities, satisfaction with organisational communication – vertically and horizontally, and many traditional ‘HR’ practices.

People – staff relationships with their immediate co-workers. Do they work well in a team? Are they motivated? Are they skilled and talented?

The results of the survey will be direct measures of how Council is performing in our five areas of priority.

Workforce Metrics and Benchmarking Surveys Monthly and quarterly metrics reporting allows for continuous measures of how Our People Plan is succeeding in managing areas such as workforce turnover, workplace injuries, absenteeism, excess leave liability, performance management and recruitment activity which all significantly impact employee experience, engagement, and excellence.

Metrics also provide a picture of the diversity of our workforce and allows us to continually plan for the future and drive decisions based on data to continue to deliver quality services for our community.

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Georges River Council // Resourcing Strategy 2022/23

Further, participation in benchmarking surveys allows us to compare our performance against industry to ensure Georges River Council is a high performing Council and an employer of choice.

Participation and Feedback in Programs Active participation of our people in programs aligned with our priorities for the next four years will provide indication of the reach or Our People Plan and the feedback gathered from these programs will further improve and provide valuable insights into shifts of experience, engagement, and excellence.

Workforce Movements Adopted talent acquisition, succession and transition to retirement strategies will enhance the attraction of quality people to fulfil the needs of our organisation now and into the future; facilitate the professional development of our people; and support our people who are preparing for life after work.

Career pathways, movements and sustained tenure of our people will be positive markers of employee perceptions of Georges River Council as a place to work and grow.

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Digital Resource Management Plan

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Georges River Council // Resourcing Strategy 2022/23

What is the Digital Resource Management Plan?

A focus on our digital resources This Digital Resource Management Plan demonstrates the Council’s commitment to using the best digital framework to enable responsive and timely services and information. It is one of four components of Council’s Resourcing Strategy, 2022/2023.

The Resourcing Strategy articulates how the Council’s finances, workforce, infrastructure, and technology will support the implementation of our Delivery Program 2022-2026. The Delivery Program works towards meeting the aspirations and expectations expressed in the Community Strategic Plan 2022-2032 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 current digital starting point, aims and the roadmap by which 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 will support digital transformation and innovation for both the 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 considerations for the future including: •

Expectations and usage

•

Governance

•

Rapid change and obsolescence

•

Funding and staffing

•

Asset management

•

Location flexibility

•

Environmental and market influences.

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Key themes of Council’s Digital Resource Management Plan Our Aim To strengthen Council’s reputation and maintain community confidence by delivering secure, efficient and customer-centric services.

For our community, this means greater flexibility and certainty in dealing with Council.

Our new CSP - The Plan 2022 – 2032 and Delivery Program 2022 – 2026 are currently on public exhibition.

Our current Digital Resource Management Plan is being reviewed to enable the priorities outlined in these plans. Three key strategic objectives have been derived from our community and corporate priorities. These will form the basis for the 2022-2026 Digital Resource Management Plan.

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Georges River Council // Resourcing Strategy 2022/23

Our 2022 – 2026 New Strategic Objectives Three strategic objectives underpin this new Digital Resource Management Plan framework which will drive our digital priorities and new subsequent actions.

1. Guard our Information – Governance to enable Trust Commit to delivering outcomes and take actions that will build a digital framework and system that is sustainable and resilient.

We will: • Continue to adapt information security governance to meet the challenges of an everchanging threat landscape • Support business sustainability and resilience • Proactively manage risks • Commit to responsible procurement and asset management.

• Cultivate strategic partnerships with core vendors.

2. Empower Digital Government – Improving the ways we serve and interact Deliver digital and automated services enabling a mobile and flexible Council.

We will: • Provide digital first user centric services through digital transformation • 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 to improve operational efficiencies • Drive a data driven, transparent organisation.

3. Sculpting Change - Exploring and adapting to new technologies Through collaboration support innovation across our corporate and customer services. We will also create a move to improve culture through continuous review and improvement of our processes and digital assets, systems, and resources to deliver increased productivity, efficiency, effectiveness, and customer satisfaction.

We will: • Drive a digitally skilled and capable workforce • Support a culture of continuous improvement • Enable innovation across Council functions and services.

Current state

Future 2026

Technology framework responsive to legislative framework

Technology framework aligned to legislative framework

One Council protected and resilient technology network, connected across location Receptive Cloud offering and enterprise hybrid Cloud architecture framework

One Council protected and resilient technology network connected with the world Embedded Enterprise Hybrid Cloud architecture framework

Availability of services anywhere on any device to staff

Availability of services anywhere on any device to staff and customers

Established continuous improvements focus across Council functions and services

Enable continuous improvements focus and innovation across Council functions and services

Strategic partnerships with core vendors

Strategic partnerships with core vendors and effective Service & Vendor Management framework

A data driven, transparent and accountable organisation enabled by digital technology

Insight to enable effective decision making through digital technology

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Emerging global trends in technology Council, in planning ahead for our future, has investigated what is promoting advancement, and adaptation in the government sector across Australia, as well as global trends and emerging technologies. Remaining informed of these emerging and evolving global trends will assist in strategic planning and manage the expectations of these future influences, although they do not affect us immediately or directly. Gartner, a leading worldwide information communication technology research agency, publishes findings annually about emerging global technology trends and influences. This research is intended to assist and guide high level strategic thinking by organisations and assist in planning for the future. The top 12 Gartner strategic technology trends are split into three sections: Technology that accelerate growth, technology that sculpts the pathway for change regarding digitisation and technology that works to engineer trust in secure integration and processing across networked environments.

Accelerating Growth 1. Generative Artificial Intelligence The artificial intelligence (AI) scene has evolved from AI managing and solving problems to creating entirely new content. Using media such as text, images and audio, a generative artificial intelligence program can produce new media based on the references it was fed. It can assist with a range of things, including the protection of identity with generated avatars and voices that seem human, to creating high resolution pictures from low resolution references.

2. Autonomic Systems Autonomic systems promote self-management, learning and awareness enabling hardware or software systems to adapt their processes to better support their ever-changing requirements and conditions, enhancing overall performance.

The adapting nature of these systems will allow organisations to respond and conform to rising needs, overtaking where conventional automation fails. Gartner predicts that by 2025 autonomic systems will be present in broad areas of robotics, smart vehicles, drones, and smart spaces, maturing from simple tasks and singular devices to complex networks such as collaborations between numerous

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Georges River Council // Resourcing Strategy 2022/23

smart devices. As an example, a drone surveyed one of Council’s parks and determined it was ready for mowing. In an autonomic system, the drone dispatches an autonomous mower or tracker to mow the grass. The council will investigate and explore the possibilities of autonomic systems across the organisation, keeping in mind the concerns around increased unemployment due to automation.

3. Total Experience Total experience, or TX, is a strategy that combines the digital and nondigital practices of user experience, citizen/constituent experience, employee experience and multi-experience to create an increased comprehensive service experience that strives to increase citizen and employee confidence and satisfaction with government services. At Georges River Council, we always aim to make services that are between the public and council effortless for both parties for the sake of efficiency and simplicity. An example of this is in the creation of our mobile app, we called on different age groups and people with different disabilities to test our complaint section. We took on the feedback accordingly to work towards the making of a that can easily be accessed and understood by any user. Council is constantly working to use modern technologies and streamline processes further for our staff to receive and complete requests.

Total experience is an approach Council will continue to utilise when working on services involving the public.

4. Distributed Enterprise Due to recent events regarding the ongoing COVID-19 pandemic, there is a focus on remote and hybrid staff having the ability to provide service to remote and in person customers using digital capabilities. This sort of flexibility will help us prepare and expand our reach and accessibility.

Sculpting Change 5. AI Engineering Artificial intelligence engineering focuses on developing tools, systems, and processes to assist the application of artificial intelligence in realworld contexts. As AI becomes more prominent in technology, the speed at which they need to be applied to our Council applications is ever increasing.

Filling critical roles, developing training, and preparing a digitally skilled workforce that are ready to support any new AI systems will be integral to the future of our work alongside emerging artificial intelligence technologies.

6. Hyper-automation Hyper-automation is a systematic strategy to quickly identify, evaluate and automate as many processes as possible. Cutting the action time of requests will help in leading us to improve citizen engagement, communication, and services. Gartner predicts that by 2024, 75% of governments will have at least three organisation wide hyper-automation initiatives, launching or in use. In Council, AI bots could be developed to take on the main 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, increasing response times from our other departments and allowing staff to attend to more complex tasks and enquiries.

7. Decision Intelligence Council needs the ability to make decisions in unpredictable environments with unaccounted challenges. Decision intelligence promotes faster, adaptive decision-making by understanding how decisions are made and how their outcomes are evaluated and enhanced by feedback. This will allow an automated decision-making process, using AI, a data driven technology, and advanced analytics at each stage of activity. In Council, we can use this to decrease response time in our services, for example having AI approve development applications if they fit criteria, or have AI find the reasons it does not.

8. Composable Applications Composable applications are easily adapted to enhance resource utilisation to meet a variety of everchanging demands, decreasing cost and decreasing response time. Applying a plug and play process, pooling resources to dismantle, exchange and re-build components allowing flexibility in controlling all elements. Council acknowledges the importance of resilience in an evolving unpredictable world and aims to establish systems that will allow us to keep pace.

Engineering Trust 9. Cloud Native Platforms

10. Privacy-Enhancing Computation Techniques Allowing the secure collection, sharing and processing of personal data, privacy enhancing computation techniques work to eliminate the compromising of privacy and confidentiality while the data is being used. Council holds the security of our data as a main priority, and we aim to guard our information with the most effective methods.

Identifying where and what kinds of information needs to be accessed and assessing where information needs to be shared internally or externally, processed or analysed we can map out the intended flow of information and how to keep it secure.

11. Cybersecurity Mesh Cybersecurity mesh is a shared, flexible, scalable, and reliable approach to cyber control, suited to keep pace with the changing demands of today.

Cybersecurity mesh architecture implements a common, combined structure of security, allowing individual solutions protecting specific access points to collaborate and create various levels of access, which provides a major difficulty to threats trying to exploit an entire network. For example, if a hacker were trying to access personal information of residents, they would need to pass multiple levels of security to access the multiple facets of the information they want. A home address, development plans and complaints would be separated, yet under the same profile. By increasing the complexity of our security, Council can ensure the confidentiality of our data.

12. Data Fabric Data fabric is the approach of handling data using network-based models, rather than end to end connections. Consisting of combined architecture and technologies, data fabric is a single environment that simplifies the management of data, connecting multiple locations, types, sources, and methods of access. A simplified process allows innovation and the combining of steps of tasks, allowing quicker processing and completion of work, rather than the alternative of processes spanning multiple locations, and creating duplicate data.

Cloud-Native is an approach to creating and running programs that takes advantage of features offered by cloud: a digital data center available to multiple users over a network. With cloud native technology's essence of agility and speed, cloud native platforms create an IT foundation supporting efficiency and resilience through secure data processing and integration.

27

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 have a customer-centric framework delivering system availability, capacity and quality of service.

Financially responsible We will source and assess technology and software delivering excellent returns 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 facilities open, transparent, and accountable decision making.

Move to Improve We will support and deliver a continuous improvement and innovative culture.

Council will present the new Digital Resource Management Action Plan (2023 to 2026) to enable the delivery our new CSP - The Plan 2022 – 2032 and Delivery Program 2022 – 2026, in 2023. The above outlined strategic objectives, emerging trends, and guiding principles will be critical in its development.

28

Georges River Council // Resourcing Strategy 2022/23

Where are we now?

We are in our final year of the Digital Resource Management Plan 2019 to 2022. Below is an overview of this Plan and our performance to date against our commitments in this Plan.

Organisational context

The existing Digital Resource Management Plan was built upon the foundations of the ICT Strategic Plan 2016-2018. It sets Council’s strategic digital technology objectives and will drive our new future state of technology.

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.

The following 2019 to 2022 Digital Resource Management Plan on a page clearly outlines our objectives and promises. A snapshot of performance and how we are progressing through the last year of this plan are shared through our Snapshot of Current Situation.

Our Digital Resource Management Plan on a page – 2019 to 2022

Enable committed governance

Empower digital government

Keeping our information safe Improving ways we interact

Undertake continuous improvement and innovation Exploring and adapting to new technologies

Embed business analytics

Creating meaningful performance data

State of digital technology 2019

State of digital technology 2022

Established technology governance framework

Robust technology governance 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

Strong and resilient Hybrid Cloud Enterprise Architecture function

Mobility and productivity challenges

Customers and staff access services and information anywhere, anytime from any device

Established continuous improvement focus across Council functions and services Established vendor management Established performance reporting to help drive accountability

Technology enables innovation across all Council functions and services A strong, strategic service and vendor management framework Technology facilitates a data driven, transparent and accountable organisation 29

Snapshot of Current Situation – Full year 2021 results

Cyber Security

12,999,645

Threats prevented/blocked

Information Management

106,818

Correspondence registered

643

Training

240

Training sessions facilitated to enable effective use of Digital Resources

Information requests processed

Sustainability

71kgs

Printing consumables

820kgs

eWaste recycling of devices

19,346kgs

Digital Assets and Resources

2,464

Hardware and software applications managed and maintained

782 Tasks

Technology Infastructure Maintenance

Use of 100% recycled paper

20,237kgs

99.97%

Availability of Digital Infrastructure performance

701

Properties created

1,008

New addresses

2,901

Change addresses

321,714

Total waste diverted from landfill

System Availability

Data Integrity

Property attributes

Move to Improve

83%

of agreed initiatives were implemented

Digital Resource Management Plan Progress 21/22 Program on track to meet

80%

compliance with 31 of the 33 Digital Resource projects in progress or complete.

30

Georges River Council // Resourcing Strategy 2022/23

Our current and future state promise - 2019 to 2022 It is important that Council continues to deliver efficient technology to our staff to ensure that 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 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 initial state of technology 2019 and future state promise 2022 State of digital technology 2019

State of digital technology 2022

Established technology governance framework

Robust technology governance 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

Strong and resilient Hybrid Cloud Enterprise Architecture function

Mobility and productivity challenges

Customers and staff access services and information anywhere, anytime from any device

Established continuous improvement focus across Council functions and services Established vendor management Established performance reporting to help drive accountability

Technology enables innovation across all Council functions and services A strong, strategic service and vendor management framework Technology facilitates a data driven, transparent and accountable organisation

31

What are our priorities?

Our priorities for 2022/23 Strategic Objective

1. Enable Committed Governance

2. Empower Digital Government

3. Undertake Continuous Improvement and Innovation

4. Embed Business Analytics

32

Priority 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 infrastructure to support our city

1.3

Leverage cost optimisation and enable proactive procurement of all Council digital assets

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

3.1

Grow a digitally skilled and capable workforce

3.2

Continue to cultivate key 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

4.1

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.

Georges River Council // Resourcing Strategy 2022/23

technical

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 increase, 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 that capacity gaps within the organisation are 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 upskill our teams to embrace modern 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. 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 carries 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.

33

Implementation, Monitoring and Review 2021 Results 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 have reviewed this Plan and our success in meeting our strategic objectives in 2021 against the following targets.

Strategic Objective

Enable Committed Governance

Empower Digital Government

Undertake Continuous Improvement and Innovation

Embed Business Analytics

34

2022 Target

Results

100% compliance with regulatory requirements

100%

99.5 % availability of digital infrastructure performance.

(Including CCTV and public Wi-Fi network)

99.97%

80% digital assets replaced in line with Digital Resource Asset Plan

85%

100% of agreed key services digitally transformed

100%

90% of staff services available on any device, anytime

100%

90% of agreed automation and artificial intelligence initiatives implemented

95%

80% compliance with State and Federal interoperability requirements

80%

100% of new staff trained in the use of digital resources.

80%

100% of digital resource courses available for refresher training

50%

80% of budgeted priority strategy projects enabled (Georges Rivre 2050, Innovation and Smart Cities)

100%

80% of Move to Improve endorsed initiatives implemented

83%

80% of budgeted Digital Resource Management Plan implemented

93%

90% of real time data analytics dashboards for operational plan KPIs established to support accountability

80%

100% compliance to Government Open Data Exchange Standards

100%

90% compliance with Data Integrity measure

90%

Georges River Council // Resourcing Strategy 2022/23

Digital Resource Management Action Plan 2022 Progress Update This Action Plan was informed by extensive organisational engagement and has strong synergies with the Community Strategic Plan (CSP) 2018-2028, specifically the goal relates to the CSP. This Action Plan focuses on the priorities and actions linked to each Strategic Objective and articulates timeframes for completion. This year 2022 is the final year of this plan. A detailed action plan enabling our new CSP will be formalised by November 2022.

Completed – 19, In Progress – 12 and Not Commenced - 2

No

Goal

Objective

Priority

Action

Timeline

Progress

Comply with changes in legislation and government policy

2022/23

In Progress

Educate staff, customers, and community to increase awareness of cyber security

2019

Completed

3

Implement Annual Audit agreed recommendations

2022/23

In Progress

4

Conduct a review of Council's enterprise systems and architecture

2022/23

In Progress

Review and communicate Council's Digital Resource portfolio and software catalogue

2021

Completed

Establish Technical Infrastructure resilience

2022/23

In Progress

Forward procurement plans for digital resources

2021

Completed

Undertake a cost optimisation review

2021

Completed

Establish and implement Council's Digital Communication Strategy

2022/23

In Progress

Continuous Review and improvement to Council's website presence ensuring relevance, performance, and responsiveness.

2022/23

In Progress

1

2

5

Digital Resource Management

Digital Resource Management

Enable Committed Governance

Enable Committed Governance

Continuously adapt Council's information security governance against an everchanging legislative compliance and threat landscape

Deliver sustainable, resilient systems and technical infrastructure to support our city

6 7

8

9

10

Digital Resource Management

Demonstrate a culture of continuous improvement and effective governance

Enable Committed Governance

Empower Digital Government

Leverage cost optimisation and enable proactive sourcing of all Council assets

Improve citizen engagement and services

35

No

Goal

Objective

Action

Timeline

Progress

Establish digital workplace to enable work anywhere, anytime on any device

2021

Completed

Establish a common digital signage framework to enable effective citizen engagement

2020

Completed

Enable Customer Request Management

2020

Completed

Enable Digital transformation for key services

2022/23

In Progress

Establish Electronic Lodgement

2021

Completed

16

Enable interoperability of State and Federal digital government initiatives

2022/23

In Progress

17

Automate invoice processing and payment

2022/23

Not Commenced

Automate incoming receipting of customer documents

2022/23

In Progress

Enable digital signatures

2020

Completed

Automate Data Integrity

2021

Completed

Streamline Application Management processing

2022/23

In Progress

Develop digital skills literacy program

2021

Completed

Review eLearning platform

2022/23

Not Commenced

Develop effective, diverse, and accessible digital resource training program

2021

Completed

Establish roadmaps for key digital resources

2021

Completed

11

12

Digital Resource Management

Empower Digital Government

Priority

Continue to expand mobile technology and digital workplace program

13

14

15

18 19 20

Demonstrate a culture of continuous improvement and effective governance

Demonstrate a culture of continuous improvement and effective governance

Empower Digital Government

Empower Digital Government

Improve citizen engagement and services

Continue to invest and enhance Artificial Intelligence and automated solutions

21 22 23

24

25

36

Demonstrate a culture of continuous improvement and effective governance

Undertake continuous Improvement and Innovation

Grow a digitally skilled and capable workforce

Digital Resource Management

Undertake continuous Improvement and Innovation

Continue to cultivate key strategic partnerships

Georges River Council // Resourcing Strategy 2022/23

No

Goal

Objective

26

27

28

28

30

31

32

33

Demonstrate a culture of continuous improvement and effective governance

Undertake continuous Improvement and Innovation

Digital Resource Management

Undertake continuous Improvement and Innovation

Demonstrate a culture of continuous improvement and effective governance

Embed Business Analytics

Digital Resource Management

Embed Business Analytics

Demonstrate a culture of continuous improvement and effective governance

Embed Business Analytics

Priority

Enable Council’s strategic and priority plans (e.g., Georges River 2050, Innovation and Smart cities strategies)

Continue iterative improvements in business process, staff, and operational efficiencies through the Move to Improve Program

Embed business reporting that facilitates an open, transparent, and accountable organisation

Ensure governance framework exists to maintain data integrity for Council data

Enable an open data exchange for our community

Action

Timeline

Progress

Review Digital Resource Management Plan to ensure that it supports the Innovation Strategy and aligns with Georges River 2050 Leading for Change

2021

Completed

Review Digital Resource Management Plan to ensure that it supports Council’s priority strategies and plans e.g., Cultural, Innovation and Smart City Strategies

2021

Completed

Facilitate Move to Improve Program with all management groups

2022

In Progress

Establish operational real time reporting dashboards to support efficient services to our community

2020

Completed

Facilitate data sources to enable City dashboard for our community and customers

2021

Completed

Establish data integrity to ensure our community has up to date information

2021

Completed

Formalise a City Data Policy

2021

Completed

Establish an open data exchange for our community

2022/23

In Progress

37

Asset Management Plan

38

Georges River Council // Resourcing Strategy 2022/23

What is the Asset Management Plan?

The Asset Management Plan (AMP) forms part of the Resourcing Strategy and highlights key elements of the Strategic Asset Management Framework (The Framework). The AMP provides an overview of the structures, management processes and principles applied to ensure of sustainable delivery of Council’s infrastructure assets. It outlines key principles that underpin our approach to providing the assets that are essential to our community.

Asset Planning and Reporting Council is committed to meeting the requirements of the NSW Integrated Planning and Reporting (IP&R) 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.

Strategic Asset Management Framework A Council’s Asset Management Framework consists of several components including an Asset Management Policy, Asset Management Strategy and Asset Management Plans for individual asset classes. The Asset Management Policy and Strategy are provided in the Resourcing Strategy along with relevant sections of the Asset Management Plans.

This allows the document to be presented in a way that facilitates understanding and engagement with the community. Georges River Council is currently working to refine our Framework to align to our goals of increasing financial sustainability.

The Framework works to deliver on Section 8B of the Local Government Act 1993, to ensure sound financial management. In terms of Asset Management Georges River Council is committed to ensuring that the community of today receive quality infrastructure and there are sufficient funds directed to maintaining these assets for future generations.

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: The Asset Management Policy adopted by Council in 2016 was superseded by the Asset Accounting Policy 2020. The general principles of the Asset Accounting Policy are as follows: • Existing assets are managed efficiently; • decisions regarding the acquisition of new assets and the sale, disposal and maintenance of current assets are undertaken transparently; and • accounting records and financial statements are prepared and maintained in accordance with the applicable accounting standards and legislative reporting requirements.

Asset Management Strategy Georges River Council’s Asset Management Strategy has been developed in the context of the following key questions: •

What have we learnt? Our key learnings over the last term of Council.

• 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.

39

What have we learnt?

Strategic Asset Management is critical to ensuring the long-term sustainability of Councils service delivery through our asset inventory. Over the last 12 months there has been a focus on understanding the maturity levels of our asset management practices. Key focus areas over this term of Council will include: • • • • • •

40

A focus on strategic asset management An accurate, up to date asset inventory, contained within the GIS Consistent naming conventions Ownership and responsibility for asset data Communication of asset data across the organisation Implementation of a robust fit for purpose Project Management Framework

Georges River Council // Resourcing Strategy 2022/23

Where are we now?

Georges River Council manages approximately $1.23 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 following tables provide a snapshot of Council’s Asset portfolio in terms of quantity, condition, and value.

Asset Inventory Asset Class

Quantity

Asset Class

Quantity

Roads - Pavement

394 km

Parks & Reserves

281- (473Ha)

Roads - Kerb

776 km

Playgrounds

118

Roads – Traffic devices

16,000

Buildings

154

Roads - Carparks

103

Foreshore infrastructure

257

Roads - Footpath

499 km

Stormwater Drainage

254 km

Stormwater - Pollution Devices

132

Table 1: A snap-shot of Georges River Council’s Infrastructure Asset Inventory Council’s asset inventory for Infrastructure, Property and Plant maintains details of fair, replacement, and historical value, accumulated depreciation, useful life and carrying amount for each asset and asset class, along with historical information relating to revaluation and impairment.

Value Major Asset Class

Replacement Cost Depreciated (CRC) Replacement Cost (Fair value)

Depreciation Expense

Buildings

265,748,000

178,655,000

5,268,000

Waterway (Other Structures)

7,535,000

5,461,000

288,000

Roads

580,465,000

420,146,000

7,723,000

Footpaths

109,661,000

67,965,000

1,346,000

Stormwater Drainage

160,773,000

83,590,000

1339,000

Open Space & Recreation

104,394,000

62,216,000

4,263,000

Total

$1,228,576,000

$818,033,000

$20,227,000

Table 2: Displays the value of major asset classes where: • Replacement costs is the current cost to replace an item of property, plant and equipment on a like-forlike basis.

• Depreciated replacement cost also known as fair value is the value of an asset after accounting for depreciation, cost in the marketplace • Depreciation expense CRC/ divided by useful life

41

Asset class values as a total percentage of replacement costs

Roads - Condition rating in practice Roads are Council’s largest asset to manage, both in asset quantity and asset value. An important measure of road assets is the Pavement Condition Index (PCI).

The PCI is a rating of 1 to 5 using a standardised system for Pavement Management. In the past two years Council has undertaken significant work to improve the pavement management process including predictive modelling of long-term changes in PCI based on a variety of funding scenarios.

Figure 1: Graph identifying asset class values as a total percentage of replacement costs

Asset Condition by Asset Class

Figure 3 provides the PCI profile for all road assets in 2016 and 2018. It shows the proportion of roads at each PCI level. As demonstrated, a large proportion of the assets are at the higher end of the PCI profile noting overall good condition. The average PCI for the road network in 2016 was 1.69 and 1.46 in 2018, this out performs Council’s target PCI of 2.8 out of 5.

Asset Conditions refer to the physical state of an infrastructure asset.

Figure 2: Asset condition by asset class as at 2020/21

42

Georges River Council // Resourcing Strategy 2022/23

Figure 3: PCI profile for all road assets in 2016 and 2018

While overall PCI remains favorable, there is data showing cracking which is a sign of deterioration. Additional pavement base testing is identified as a key action in the upcoming asset management program to validate the concerns relating to pavement distress parameters.

In the past 4 years, Council has undertaken approximately 415,868 m² of resheeting works across the local government area.

Based on the current and projected network status, Council should consider annual spending of $5.5M to maintain the network within a PCI range of 2.5 to 2.8 over the next 10 years.

Without additional road renewal funding each year the predictive modelling suggests that the network average pavement condition will fall below the community desired service level of 2.8 in approximately 7 years.

Figure 4: Predictive modelling of long term changes in PCI based on a variety of funding scenarios.

Working towards Zero Net Emissions Targets Council is working to increase opportunities to use recycled materials in construction using recycled materials such as Recycled Crushed Glass (RCG) and Reclaimed Asphalt Pavement (RAP)for use in asphalt. This promotes innovation and greater efficiency, enables our transition to a circular economy and leverages better environmental and economic outcomes. In 2022/ 23 Council will trial RCG on our roads with the aim of rolling out more broadly in 2023/24 after a thorough assessment is completed.

Council will look to increase sustainable materials into other asset classes in the coming years.

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.

43

Where do we want to be?

The Plan 2022 – 2032 The Plan 2022 - 2032 is our second community strategic plan. This revised community strategic plan progresses and extends the previous community strategic plan, bringing on board new and previous community feedback and aspirations and taking account of the challenges that now confront not just Georges River Council, but also NSW, Australia and indeed, the world.

The Plan identifies the following six pillars that underpin our work for the community: 1. Our community 2. Our green environment 3. Our economy 4. Our built environment 5. Our place in Sydney 6. Our governance The community engagement undertaken to deliver The Plan found that the key priorities of our community for the future of the Georges River Local Government Area include planting trees and greening our area, including greening our town centres.

Our community appreciate and want more and upgraded open space and parks and want safe cycling and walkability. Residents want to protect the Georges River area heritage and history. They want to activate our town centres and provide jobs for local people and want to continue to enjoy local festivals and events and have access to community support.

There is a shift to stay local, due to the COVID-19 pandemic, and our community anticipates that this shift will be on-going. They want to continue to use local parks and shop locally and work from home at least part time. It signals a possible renaissance for our local centres and continued high use of our parks and open space.

There is strong support for the provision of library services in the western part of the local government area, and people of all ages, including children, support and want to continue to enjoy local library services.

Residents want good governance and financial efficiency from Council.

The Asset Management Strategy has been prepared in line with the six pillars outlined in the 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.

44

Georges River Council // Resourcing Strategy 2022/23

Pillar

Goal

Roads

Stormwater Drainage

Open Space & Recreation facilities

Buildings











Our Community 1.1 Our community is socially and culturally connected, and we strive for social equity



1.2 Diverse, vibrant community hubs and facilities are connected, well maintained and have equitable access.

1.3 The community is safe and healthy.

1.4 Georges River area heritage and history is protected.

 



 

 













Our green environment 2.1 Our environmentally sustainable practices inspire us all to protect and nurture the natural environment.

2.2 Our waterways are healthy and accessible.

2.3 Greening, canopy cover and bushland and biodiversity preservation are maximized.





Our economy 3.1 Local jobs and local businesses are supported to grow.









3.2 Our town centres are green, clean, vibrant and activated and have good amenities.



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3.3 Georges River is a 30 minute city

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Our built environment 4.1 New development should make Georges River more liveable, vibrant and sustainable.

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4.2 Affordable and quality housing options are available.

4.3 There are a range of transport options and increase walkability and cycling to connect people, goods and businesses.

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4.4 Everyone has access to quality parks and open space and active and passive recreation facilities 4.5 Council-led development and assets provide quality, long term benefits to everyone.

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5.1 Leadership focuses on innovation and improving the customer experience.

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5.2 The three spheres of government work together to improve services and facilities in our area.

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5.3 Georges River is known for being environmentally and culturally rich and enhances its metropolitan position as a destination for people and business.

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6.1 Our community’s voice is considered in planning the area’s future.

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6.2 Our decisions are based on evidence which consider financial impacts, the environment and impacts on future generations.

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Our place in Sydney

Our governance

6.3 Our community knows why and how decisions are made 6.4 The workforce is inspiring, diverse and engaged.

Figure 5: The Plan pillars and goals and alignment to service delivery outcomes for 2022-2032

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Desired levels of service Service levels refer to both technical levels of service and community levels of service. Community levels of service are reflective of the communities’ expectations of the asset and the service it provides. Council’s community service levels have been developed through an extensive community consultation process to gauge expectations of the infrastructure assets that Council provides.

A project conducted in 2016/17 involved a representative telephone survey of 400 residents to explore the importance of, and satisfaction with, existing assets as well as priorities for the construction of new assets. A deliberative community forum was also held with ratepayers to explore the acceptable condition levels for the asset categories and where funds should be spent in the future.

The survey demonstrated that ratepayers felt that all services provided by Council’s infrastructure assets are important and they were generally satisfied with the with the current condition and service provided.

Overall, results show very high levels of satisfaction. The areas of higher dissatisfaction have been investigated to target the service level improvements that would best improve the level of satisfaction, details of these improvements are outlined below.

Figure 6: Community satisfaction with assets scale of 0-10 where 10 = extremely satisfied and 0 = extremely dissatisfied

46

Georges River Council // Resourcing Strategy 2022/23

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 3 was the acceptable standard.

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 rehabilitated when roughness counts exceed 120 or more

2.9

Kerb and Gutter

Water doesn’t pond in driveways for more than 2 days after a storm

K&G rehabilitated or renewed at or prior to condition 3

2.5

Footpaths

Safe, sound, non-slippery pathways provided to enable safe travel throughout the network

No more than 30% of all identified trip hazards have a step greater than 25mm.

2.7

Parking & Bus Shelters

Provide an efficient parking and bus shelter areas that are aesthetically pleasing

Annual condition assessments to ensure these assets are 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

4,263,000

Table 4: Results of community service levels engagement 2016/17

Community feedback is an essential part of determining 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 determined by the community.

47

Focus Areas Following the survey, to increase levels of community satisfaction, Council reviewed service levels on the Streetscape and Public Amenity cleansing programs.

Case study: Streetscape Deep Cleansing Program

Case Study: New Footpath Program 2022/23

Following community feedback Councils public place deep cleansing program has undertaken a partial review. Following the review of this service a new schedule has been implemented determined by each centres requirements for deep cleansing in commercial centres and amenities. This program is in addition to existing routine cleansing carried out by Council and covers:

After two years of undertaking footpath renewals only, in 2022/23 Council will recommence the construction of new footpaths.

• • • •

2 Strategic Centres being Kogarah and Hurstville 8 Town Centres 14 Local shopping strips 57 Public Amenity Buildings

Case study: Public Amenity Cleaning Council officers identified a performance gap within the current service provided in public amenity cleaning in overall hygiene, cleanliness and safety practices. The review saw changes in routes, introduction of new products, a support manual and training. Our public amenities now receive a rating of 94% up from 24%.

48

Georges River Council // Resourcing Strategy 2022/23

The locations have been selected through a placebased analysis to: • improve links to public transport, educational institutions, commercial centres, recreational facilities and health facilities; • strengthen existing pedestrian links creating a connected network, and • meet the expectations of the residents.

Council receives numerous requests for new footpaths each year. To provide further information, the following specific criteria are used to assess the priority of new footpath requests.

• • • • • • •

Proximity to pedestrian generating land uses; Availability of footpath on one side of the street; Availability of pedestrian crossing facilities; Pedestrian volume during peak periods; Traffic volume on road segment; Footpath network linkage, and Condition of the existing grass verge.

Implementation, Monitoring and Review Monitoring Asset Management Performance Council will monitor asset performance through the following indicators:

Indicator

Purpose

Benchmark

2021

2020

2019

2018

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%

55%

83.30%

104.04%

76.62%

2

Infrastructure Backlog Ratio

This ratio shows what proportion the backlog is against the total value of a Council’s infrastructure.

Max 2.00%

1.63%

1.54%

1.58%

2.14%

3

Asset Maintenance Ratio

Compares actual v’s required annual asset maintenance. A ratio above1.0 indicates Council is investing enough funds to stop the infrastructure backlog .

Min 100%

100.19% 101.33% 105.35% 114.60%

Table 5 shows the industry benchmarks for asset performance and Council’s results for the past 4 years

The ratios provide an indication as to whether present allocated budgets are funding the appropriate share of the consumption of the assets each year.

Note* Infrastructure Renewal Ratio: The low infrastructure renewal ratio for 2021 is due to a material prior year error relating to found assets, disposed assets and duplicated in Open Space and Building Assets identified by the auditors and corrected in the FY21 Annual Financial Statements. Actions to mitigate this error have been included in the Improvement Plan on page 17. It is noted that the actual dollar amount of renewals increased in FY21 however, due to the prior period errors and the impairment losses, the ratio dropped significantly. If you exclude past period errors the ratio improved on FY20.

Council is currently performing above the industry benchmark for maintenance. This table shows a high level of planned maintenance which can offset of the lower renewal rates in the short-term, however Council acknowledges a need to focus on renewals over the next 5-10 years.

Based on asset information which will be refined over the next 12 months it is predicted that there will need to be increased budget allocated to the renewal of Open Space and Stormwater Asset Classes.

49

Operations and Maintenance Expenditure 11,428,000

12,119,000

10,660,000

9,128,000

Buildings

4,008,000

5,744,000

7,326,000

7,100,000

Roads

4,076,000

4,105,000

3,144,000

3,061,000

Footpaths

2,208,000

2,892,000

5,228,000

3,347,000

Street Lighting

2,155,000

2,448,000

2,422,000

2,039,965

Stormwater Drainage

1,476,000

1,451,000

1,988,000

1,871,000

25,351,000

28,759,000

30,768,000

26,546,965

Open Space

Annual Total

Table 6: The annual operating and maintenance costs of Council’s assets for the past 4 years.

Table 6 provides an overview of the previous year’s annual operating and maintenance costs per asset class.

These are fixed costs required to operate and maintain these asset classes.

Life cycle management and expenditure forecasts Council has a responsibility to plan and maintain assets to ensure long term sustainability.

The long -term priority presented in this strategy reflects Council’s objective to manage its current inventory of 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 the ten-year expenditure forecast for Council’s infrastructure assets based on current operational and maintenance expenditure: Financial Indicator

10yr Financial Projection 2021/22

2022/23

2023/24

2024/25

2025/26

2026/27

2027/28

2028/29

2029/30

2030/31

Operations($M)

14,163

14,489

14,822

15,163

15,512

15,869

16,234

16,607

16,989

17,379

Maintenance($M)

15,854

16,219

16,592

16,973

17,364

17,763

18,172

18,589

18,989

19,433

Total($M)

30,017

30,708

31,414

32,136

32,876

33,632

34,406

35,196

35,978

36,812

Table 7: Ten-year expenditure forecast for Council’s infrastructure assets

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.

50

Georges River Council // Resourcing Strategy 2022/23

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 2021, Council’s infrastructure backlog was reported at $15.76 million. Council’s infrastructure backlog is projected to grow at approximately $2.38 million per year over next 10 years.

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 five 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.

Table 8 displays the challenges council will face in the coming years if there is not increased renewal expenditure. It is important to prioritise the renewal of assets ‘replacements of existing assets as opposed to the acquisition of new assets.

Financial Year Projected Infrastructure Backlog($M) Projected Renewal Ratio (%)

2021/22 2022/23

2023/24 2024/25

2025/26

2026/27

2027/28

2028/29

2029/30

2030/31

20,186

22,573

24,979

27,403

29,845

32,305

34,781

37,274

37,574

37,994

57.13%

57.8%

57.13%

57.13%

57.13%

58.48%

57.13%

58.83%

59.42%

60.12%

Table 8 is a prediction based on the 20/21 FY data showing renewal ratio of 55%

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

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How will we get there?

Improvement Plan 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. This includes ensuring 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.

This is the first Asset Management Maturity Assessment for the amalgamated Georges River Council.

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 three years. Specific actions to be undertaken to improve or enhance council’s asset management capability, including resource requirements and timeframes are provided below.

Strategic Actions – Improvement Plan The Improvement Plan outlined is a culmination of previous years improvements plans consisting of 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.

52

Georges River Council // Resourcing Strategy 2022/23

Figure 7: Asset Management Maturity Assessment

A progress report has been included as has additional actions identified as part of the 20/21 Annual Financial Statement and as direct results of operational changes.

An Asset Management Steering Committee was established in early 2022 to guide the overall strategic direction for asset management, to ensure operations and management of Councils assets are executed in alignment with Councils strategic direction, specifically: Develop and establish corporate policies, strategies and guidelines regarding asset management; Review and monitor the preparation and implementation of Asset Management Plans; Review existing asset management practices, procedures and systems; • Review and monitor the 10-year, 4-year and Annual Capital Program; • Review and evaluate specific business cases as they relate to new assets; • Review the distribution of grant funding allocations to ensure alignment of critical priorities and equity across all directorates; • Monitor the implementation of recommendations from the Asset Management Assessment – Morrison Low report and; • Advocate on behalf of Council to NSW Government in regard to asset management matters.

It is important to note that with an increased focus on asset management it is likely more areas for improvement will be highlighted in the coming years

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Asset Management Improvement Plan Action

Progress

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.

The Georges River Council Innovation Strategy was adopted in 2020. The Strategy continues to be delivered as is an increased focus on place-based infrastructure planning.

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.

A realignment of the Assets and Infrastructure Directorate to include the Strategic Placemaking business unit has created a focused strategic approach to Council’s asset management practices.The Georges River Asset Management Steering Committee has also been established to drive strategic asset management.

MSPM, CFO

High

Ongoing

3

Deliver a robust Strategic Asset Management Framework including an Asset Management Policy, Strategy and Asset Management Plans for each asset class

Council’s Strategic Assessment framework is now under review as a result of the 2020/21 Asset Management Maturity Assessment.

The realignment of the Assets and Infrastructure directorate have created a strategic arm to undertake long-term planning for community assets. The Georges River Asset Management Steering Committee has also been established to drive strategic asset management.

AMSC

High

22/23

4

Advocate to ensure the sustainability, transparency and intergenerational equity of community infrastructure

Councillors and Council officers will continue to advocate for consistent asset management practices. Most recently a motion to the LGNSW Conference advocating for a consistent framework for establishing useful lives of assets.

Councillors ET

High

Ongoing

5

Develop an end-to-end asset accounting processes from planning, operating to renewal phases.

The Asset Accounting Policy was adopted in 2020 to drive accurate asset management practices across Council.Councils Strategic Assessment framework is now under review as a result of the 20/21 Asset Management Maturity Assessment.The Georges River Asset Management Steering Committee has also been established to drive strategic asset management.

CFO AA

High

22/23

6

Build capacity by reviewing and documenting roles, resources and responsibilities for asset management. This includes establishing a good understanding of asset and financial data planning and management.

A realignment of the Assets and Infrastructure Directorate to include the Strategic Placemaking business unit has created a focused strategic approach to Council’s asset management practices. Asset Specialists in 22/23 will focus on creating an accurate asset inventory located within Councils GIS.

CFO MSPM

High

22/23

54

Georges River Council // Resourcing Strategy 2022/23

Action

Progress

Responsibility Priority Timeframe

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.

Operational practices have been reviewed and new processes have been implemented to accurately account for asset planning and capitalisation.

11

Update asset management plans for all asset classes

A new dedicated team will deliver updated asset management plans for the four asset classes with a 10-year outlook RoadsOpen SpaceBuildingsStormwater

15

Establish a new Project Management framework.

7

AA AS

High

22/23

MSPM AS

High

22/23

The Project Management framework is currently being developed and will be rolled out in 2022.

MSPM MCTS

High

22/23

The newly established Georges River Asset Management Steering Committee will make recommendations to the Executive regarding capital investment decisions. This will include the approval of asset management plans and 10-year capital works program.

AMSC

High

22/23

In progress. A focus for 2022/23 is Street Tree Planting and Preventative Maintenance

CIO MCOS MSPM

Medium

22 – 24

Deliver a corporate Asset Management System containing 10 all asset inventory data, financial information, maintenance and scheduling

Scoping is currently in progress.

CIO, MSPM, AA

Medium

22 – 24

Incorporate pavement base deflection testing into pavement 12 management to allow more detailed approach to deterioration modelling and treatment selection.

In 2022 a comprehensive Roads Condition assessment is being undertaken to plan for the next 3 years of road re-sheeting

AS

Medium

22/23

Prioritise and plan asset maintenance renewal works to meet 13 agreed service levels based on site inspections, infrastructure priorities and community importance

A new dedicated team will deliver updated asset management plans for the four asset classes with a 10-year outlook RoadsOpen SpaceBuildings Stormwater

AS COS

Medium

22/23

MSPM, MCTS

Medium

22/23

Review processes for making capital investment decisions. To be driven

by Council’s strategic long term planning documents, Long Term Financial Plan and Community 14 Strategic Plan. Explicitly detail the impact on the future operations and maintenance budgets, “whole of life” costs and risk management assessments

9

16

Deliver Works, Assets and Mobility program to support preventative maintenance decisions and longterm planning

Establish a framework for community groups to request works to Council assets to align with the annual budget process.

Working group established

Key ET - Executive Team AMSC - Asset Management Steering Committee MSPM - Manager Strategic Placemaking CFO - Chief Financial Officer AA - Asset Accountants

AS - Asset Specialist MCTS - Manager City Technical Services CIO - Chief Information Officer COS - Executive Manager City Operational Services

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Long Term Financial Plan

56

Georges River Council // Resourcing Strategy 2022/23

Executive Summary

The Long Term Financial Plan (LTFP) forms part of the Resourcing Strategy and is an essential for informing decision-making during the preparation and finalisation of the Community Strategic Plan and the development of the Delivery Program.

As per the relevant legislation, financial decision making is to give due consideration to promoting the financial sustainability of the council through:

Despite resource caps within council, a challenging external environment and an increase in service expectations Council remains committed to its financial sustainability. A requirement of our approved special rate variation from IPART is to substantially maintain the service standards whilst identifying $12 million in cost containment and efficiencies over the next three years.

•

the progressive elimination of operating deficits

•

the establishment of a clear revenue path for all rates linked to specific expenditure proposals

•

ensuring that any proposed increase in services and/or assets is within the financial means of the council including a proposed special rate variation

The 2022/23 Budget will be the first year Council is forecast to achieve a surplus and difficult prioritisation of valued services, projects and programs will be essential reaching financial sustainability and compliance with Council legislative obligations.

•

ensuring the adequate funding of infrastructure maintenance and renewal

•

the use of borrowing is appropriate and financially responsible, and

•

the fair and equitable distribution of the rate burden across all rate payers.

This LTFP has been developed based on the 2022/23 Budget Strategy and the Independent Pricing and Regulatory Tribunal (IPART) approval for a special rate variation that was announced in May 2021.

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Financial Governance and 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.

The Local Government Act 1993 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: » performance management and reporting, » 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.

Principles In addition to the legislated principles of sound financial management, Council’s actions and strategies are balanced on the following principles: Sustainability, Affordability, Accountability and Growth.

Sustainability

Ensure the long term sustainability of Georges River Council – this involves putting in place measures to strengthen its operating income base (without depending on one-off receipts of grants or contributions), managing its expenditure to optimum levels, and maintain positive Net Operating Results.

Affordability

Operate within affordability by structuring expenditure within the boundaries of income received and/or level of subsidy. Plan and execute programs and projects after taking into account the affordability of the long term ongoing impact on future revenue and expenditure and its priority in the context of strategic priorities.

Accountability

Continue to be accountable to ratepayers for optimum management of income generated and expenditure incurred. Ensure the budget strategy is transparent and aligned with the obligations of financial sustainability.

Growth

Approach all activities from the perspective of constantly improving the quality of services, identifying efficiencies, cost containment and productivity, to benefit the current and future community.

58

Georges River Council // Resourcing Strategy 2022/23

Sustainability and Affordability 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.

In 2018, it was identified there was declining profitability and a dramatic decline in cash forecast over the 10 year period. This was due to two fundamental problems: 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.

Over the past four years after extensive engagement with the Community, Council received approval from the Independent Pricing and Regulatory Tribunal to increase rates over five years (known as a Special Rate Variation) in conjunction with a $12 million savings target.

This revised LTFP outlines the impact of the approved Special Rate Variation (SRV) and the projected financial results based on budget saving strategies implemented annually.

The next 10 years presents the requirement for Council to generate sufficient funds to carry out $422 million worth of infrastructure outlined in the adopted Contributions Plan and also establish a financially sustainable base to enable funding of projects outlined in strategic documents, that currently have limited or no funding options. The value of these works is over $400 million.

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Productivity and Cost Containment Strategies The Council has adopted consistent operating deficits since 2012. With an average adopted deficit of $8.1 million, prior to the amalgamation.

Following the amalgamation, Council has adopted, an almost halved, average deficit of $4.4 million, this is a significant improvement based on two years of COVID-19 related financial impacts.

2020/21 financial results outlined the operating performance ratio improved by 4%, bringing council closer to a budgeted surplus target in 2023/24.

Further, Total cash and investments increased by $15 million, which was a positive result attributed to the strict 2020/21 budget strategy adopted.

Unrestricted cash was a positive $7 million, comparative to nil in 2019/20.

These results have reinforced the success of council’s strict budget management strategies adopted over the past four years and the outcome of extensive community consultation.

The next three years will require Council to identify $12 million in operational savings to complete the IPART approval for the Special Rate Variation and overcome the financial sustainability issues identified in 2018.

To achieve these savings, Council can adopt a very broad range of strategies, initiatives or activities to improve the efficiency of its operations and the productivity of its workforce, and to contain costs and increase revenue. Approaches to include: •

Review of assets in order to rationalise and divest property

•

Review of and refinancing loan borrowings

•

Reviewing community venue management to increase the utilisation of venues and associated revenues

•

Reviewing charges to ensure greater costrecovery for Council provided services

•

Pursuing opportunities for commercialisation and business improvement

•

Introducing environmental and energy efficiency initiatives

60

Georges River Council // Resourcing Strategy 2022/23

•

Adopting more efficient information and communications technology for a range of activities such as communications, document processing, financial transactions, outdoor staff operations, e-recruitment

•

Redesigning and/or removing non-statutory administrative reporting or people/performance/ project management to achieve efficiencies

•

Comprehensive strategic-level review of council operations including service priorities, levels of service, labour and capital inputs

•

Targeted reviews of discrete areas of council operations encompassing all aspects of processes, reporting, procedures, procurement, scheduling and equipment use

•

Reviewing service delivery standards

•

Organisational restructures to achieve better workforce efficiency and reduced salary expenditure

•

Reviewing procurement strategies, such as shared purchasing through joint organisations of councils

•

Improved management of workers compensation insurance claims and safety audits

•

Seeking private contract works for road maintenance and other services

•

Contracting to provide services to other councils or the private sector

•

Adopting waste management strategies to reduce landfill waste and associated costs

•

Focus on works projects that are funded from externally restricted reserves

•

Continue to benchmark activities and align operations where necessary, to yield optimum results

•

Provide financial hardship support to those adversely impacted

•

Mitigate the impact of external factors on Council’s financial sustainability.

Local Infrastructure Contribution Projects The New South Wales (NSW) local infrastructure contributions (LIC) system helps provide new and growing communities with appropriate infrastructure. The NSW LIC system is regulated by the Environmental Planning and Assessment Act 1979 (the Act) and the Environmental Planning and Assessment Regulation 2000. Section 7.11 allows councils to levy contributions towards the cost of providing local infrastructure.

Contributions plans set out the local infrastructure required to meet the demand from new development, and the contributions a council can levy on developers to fund the necessary land and works.

Voluntary planning agreements (VPAs) is another form of revenue generated for local infrastructure from developments. They are arrangements between developers and either councils or the State Government for infrastructure contributions collected for purposes not covered by a contributions plan. Section 7.4 of the Act allows councils and developers to voluntarily agree to a contribution arrangement.

The purpose of the Council’s LIC plans and VPAs is to: •

Provide the framework for the efficient and equitable determination, collection and management of contributions towards the provision of local infrastructure in the Georges River LGA; and

•

Ensure Council’s management of local infrastructure contributions complies with relevant legislation and practice notes; and

•

Establish the relationship between expected development and proposed local infrastructure to demonstrate that section 7.11 contributions under this plan are reasonable; and

•

Ensure that developers make a reasonable contribution to the provision of local infrastructure required for development anticipated to occur up to 2036; and

•

Ensure that the existing community is not unreasonably burdened by the provision of local infrastructure required, either partly or fully, as a result of development in the area; and

•

To allow the opportunity for local infrastructure, or the dedication of land at no cost to Council, to be provided by developers or land owners in lieu of paying a monetary contribution when it accords with Council objectives or outcomes.

Development timeframes are such that there is often several years between when LICs are collected and the infrastructure is delivered.

The below table highlights the current balance at year end and forecast closing balance based on budget allocation and anticipated income.

61

Georges River Council Infrastructure Contribution Reserve Balances

2019/2020 Actual Closing Balance

2020/2021 Actual Closing Balance

2021/22 Forecast Closing Balance

2022/2023 Forecast Closing Balance

$'000

$'000

$'000

$'000

0

0

419

991

4,355

3,394

4,249

2,564

Former Kogarah Section 7.11 Contributions Plans – Commenced 12 March 2013

36,093

40,730

41,385

45,014

Former Hurstville Section 7.11 Contributions Plans – commenced 14 March 2013

17,037

12,758

13,667

12,523

Former Hurstville Section 7.11 Contributions Plans – Repealed 14 March 2013

7,056

5,832

5,857

5,236

94

374

376

379

10,419

10,630

12,325

10,036

$75,054

$73,718

$78,278

$76,743

New Georges River Council Section 7.11 Contributions Plan (Anticipated expenditure depending approval) Georges River Council Section 94A Plan

Section 7.13 - Court Ordered Development Consent Contributions Voluntary Planning Agreements Totals

The new Georges River Council Contribution Plan includes $422 million worth of works, of this approximately 45% ($192 million) is to be funded by Council and the remainder is developer contributions.

State and Federal grants are also potentially available for many of the projects within the works schedules and can be used to assist with Council’s contribution.

Further, several key projects in the contributions plans have potential to be delivered as a joint venture, particularly in the Civic Centre Precinct. These projects represent approximately $50 million of funding required to fund the existing population’s share.

Council also has funds that will be received as part of various planning agreements which may be used towards funding the projects with low apportionment to the future population, particularly for public domain and traffic works within the Hurstville City Centre.

The table on the next page highlights the Value of works contained in s7.11 and s7.12 works schedules, with apportionment by Infrastructure types:

62

Georges River Council // Resourcing Strategy 2022/23

Value of works contained in s7.11 and s7.12 works schedules, with apportionment Infrastructure types

Total project costs

LIC Apportioned costs

Council Contribution

$173,990,852

$143,873,354

$30,117,498

Open Space Upgrades

$82,920,936

$58,614,542

$24,306,394

Open Space Acquisition

$91,069,916

$85,258,812

$5,811,104

Community and Recreational Facilities

$96,399,508

$44,727,899

$51,671,609

Recreation facilities (indoor and outdoor courts)

$14,998,500

$14,998,500

$0

Libraries (capital works)

$52,378,610

$9,428,150

$42,950,460

Libraries (resources)

$1,693,757

$1,693,757

$0

Community Centres

$21,773,641

$13,499,657

$8,273,984

$5,555,000

$5,107,835

$447,165

Public Domain

$88,206,305

$13,230,946

$74,975,359

Transport

$41,899,118

$6,284,867

$35,614,251

Roads and intersections

$26,816,875

$4,022,531

$22,794,344

Pedestrian, active transport and traffic calming

$15,082,243

$2,262,336

$12,819,907

$400,495,783

$208,117,066

$192,378,717

$3,121,756

$3,121,756

$0

Open Space

$2,600,000

$2,600,000

$0

Community Facilities

$4,100,000

$4,100,000

$0

Public Domain

$2,400,000

$2,400,000

$0

Transport

$9,700,000

$9,700,000

$0

Sub-Total

$18,800,000

$18,800,000

$0

Total costs

$422,417,539

$230,038,822

$192,378,717

Section 7.11 Works Open Space

Childcare facilities

Sub-Total Admin (1.5% of total costs) Section 7.12 Works

Open Space acquisitions and upgrades contribute to 42% of the total works schedule. The amount of open space currently provided in the Georges River LGA is 2.34 hectares per 1000 people, short of the benchmark of 2.7ha per 1000 people. There is also a shortfall of active open space provision of 7.6ha for the existing population. With additional population growth, the existing rates of provision will drop, and the shortfalls will increase unless more open space can be provided.

Ward

Blakehurst

Hurstville

Kogarah Bay

Mortdale

Peakhurst

124.93

26.14

57.76

29.99

235.37

9,778

11,819

13,553

10,287

9,355

Open Space per Dwelling (sqm)

127.77

22.12

42.62

29.15

251.60

% of Total Open Space

26.3%

5.5%

12.2%

6.3%

49.6%

Area of Open Space (ha) Number of Dwellings

To maintain the current rate of 2.34ha per 1000 people for the incoming population, Council would need to provide an additional 57.6ha (at an estimated cost of $1,440,000,000) of open space by 2036. The NSW government cap on contributions to a maximum of $20,000 per dwelling means that this amount of land acquisition is unaffordable under section 7.11 contributions.

63

Forecasting and Assumption Statement Financial Planning Assumptions In preparing the budget, consideration was given to a range of economic and political factors that affect our finances. This impacts our capability to maintain existing levels of service and long term financial sustainability.

Georges River Council is expected to have significant worker and resident population growth over the next 15-years. A large proportion of this growth is forecast to occur in the strategic centres of Hurstville and Kogarah. This growth creates a new demand for either new facilities or embellishment of existing facilities.

Area

2021

2026

2031

2036

Total Change 2021-2036

Change (%)

Total (residents)

162,794

170,524

177,933

185,346

22,552

13.9%

Total (workers)

52,784

56,452

59,530

63,292

10,508

19.9%

The Independent Pricing and Regulatory Tribunal (IPART) recently announced the introduction of the rate peg with a population growth factor included. It is noted that this will not account for past growth and a special rate variation is required to cover costs associated with population growth. Further, the Local Government cost index calculator does not account for drops in income, increased service expectations/expansion or the approved mandatory Award increase.

Changes to service expectations or level of service would require a further special rate variation in future years.

Revenue Forecasts Rating Rates are the most stable and largest source of operating revenue that fund services. Council will assess the following in the long term management strategy of rates: • application and impact of special rate variations •

application of the new rate peg and population growth factor

•

restrictions of the current rate peg local government cost calculator

•

increased revenues from other sources

•

changes to service portfolio and level of service

•

the projected impact of the rate cap

•

any need to increase the reliance on rating due to a reduction of revenues from other sources such as a decline in grants and subsidies.

64

Georges River Council // Resourcing Strategy 2022/23

Fees and Charges

A number of the services we provide are offered on a user pays basis. In preparing the Long Term Financial Plan, possible future income from fees and charges, including opportunities to reduce reliance on other forms of income, has been considered. A major limitation of fees and charges growth is the statutory fees and charges that do not cover the cost of service. It has not been assumed that COVID-19 will continue impacting fee based services into the life of the plan.

Grants and Subsidies

The assumption is to plan for continued efforts in applying for and receiving grants based on historical trends. This is a volatile income source and should these grants and subsidies be reduced, our ability to provide the same level of service will be impacted.

Contributions

As part of the NSW Governments review of the infrastructure contributions system, the

Government introduced the Environmental Planning and Assessment Amendment (Infrastructure Contributions) Bill 2021 (Bill).

The amendments proposed in these reforms would have a significant impact on the Georges River Council contributions plan, with approximately $60m worth of projects apportioned to development in the works schedules of this plan for facilities that may be excluded. Should the Bill be passed, and a new contributions Plan be required.

Operating Expenditure Forecasts Employee Benefits and On Costs

The current Local Government State Award prescribes the mandatory annual increase for award based staff. Other assumptions relating to employee costs in the Long Term Financial Plan include: • Assumed annual award increase of 2% where it is unknown •

Increase in superannuation as per the 12% target by 2025/26

•

No change in existing employee resourcing levels

•

A 6% vacancy in establishment permanent positions in each financial year.

•

Annual productivity initiatives such as Christmas close down, no grant days, vacancy rates, recruitment holds and moderate training program until 2025/26 of between 3% and 6% per annum

Note: Award increase post 30 June 2023, have not been confirmed/approved. Consultation on the Award increases is anticipated to start February/March 2023.

Borrowings

2022/23 will result in Council being debt free with the final payment of the 10 year Jubilee Community Centre loan. There are no anticipated borrowings over the ten year period based on Council being required to demonstrate an actual trend of positive operating results.

Materials & Contracts

Materials and contracts including Domestic Waste Management costs and other expenses which represent the principal costs used to deliver services to the community are forecast to increase in line with the CPI. While the rate of growth projected is uneven it is forecast to average 2.3% per annum.

Depreciation and Amortisation

The depreciation methodology can be found in the Notes to the General Purpose Financial Statements.

The depreciation expense assumed in the Long Term Financial Plan has been calculated in accordance with this methodology.

Other Expenses

Other Expenses primarily relate to Utility Costs, Property Maintenance, Insurances, Statutory Charges (including Election Costs, Emergency Services Levy). These are forecast to generally increase in line with CPI, though an assumption of environmental sustainability measures being implemented will have financial benefits of 0.2% per annum.

Capital Works Program Forecasts

Historical trends highlight grant and developer contribution funds has been the main contributor to new and renewal of assets. This is a volatile funding source, and the Georges River Council Contributions Plan highlights a shortfall in funding future infrastructure needs.

Council achieving operating surpluses and regenerating internal asset management cash reserve will be a key requirement to fund renewal items in the future, close the infrastructure funding gap and assist in co contributing to grant funded projects.

The plan has assumed an annual program of $35-40 million per year with the continued assumed funding of over 30% from external restricted funding sources.

Model Sensitivity

In planning for the current and future forecasts, we have made assumptions on factors outside of our control such as inflation, wage increases, cash rate and rate/other income capping.

Although the assumptions are are our current informed estimate based on a range of reliable sources, long term financial plans are inherently uncertain. These models are based on assumptions which represent the most likely outcome, given the prevailing economic and operating environment.

Within each model there is a table that outlines the assumptions applied. A 1% increase in the Inflation rate can adversely affect the Result (net of Capital Grants). Similarly, an additional 1% increase in wage costs can adversely affect the net result.

65

Key Performance Indicators Financial health check performance indicators including the unrestricted current ratio, operating result, debt service ratio and capital renewal ratio are monitored/reported on quarterly and annually. The statement of performance measures is in accordance with Local Government Code of Accounting Practice and Financial Reporting.

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 improving 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 is the operating environment.

66

Georges River Council // Resourcing Strategy 2022/23

Financial Models Overview Current Situation – Based on the Adopted 2022/23 Budget On 27 June 2022, Council resolved to reintroduce and adopt a number of budget changes, resulting in a reduction of the target surplus from $1.9 million to $1.2 million. The following items were reduced or deferred in the 2022/2023 budget; • • • • • • •

Community Grants Program - budget reduced by $45,000 to $436,00 Meet Your Ward Councillor Days - format be revised and budget of $32,000 deferred Staff Leadership Program - budget reduced by $20,000 to $80,000 Cashless Payments Customer Experience Centres - budget of $50,000 deferred.

River Run Staff Conference - budget of $200,000 deferred.

Analysis of risk along ethane pipeline - budget of $35,000 deferred No change to the Councillor Salary for the 2022/23 Financial Year.

The following items were included in the 2022/2023 budget; • • • • • • • • •

Increase council’s contribution to the Georges River Council Combined Committee (GRCCC) - $20,000 Councillor superannuation contributions from 1 July 2022 of 10.5% - $50,000 3 Staff Grant Days - $600,000 Significant Tree Register - $40,000 ($20,000 to be funded by Resilience Fund grant) Councillor Discretionary Ward Fund - $45,000 Population Data Analysis and Forecast Report - $70,000 Playing field lighting upgrades - $90,000 Finalise the Mortdale Local Centre Master Plan - $60,000 Masterplan Traffic Studies - $100,000

Model 1 – Based on Draft 2022/23 Budget with savings/reduction strategies applied The Adopted IPART approved model (Model 3) highlighted a surplus of $1.9 million in 2022/23. In order to achieve the $1.9 million surplus target, a cost reduction strategy has been applied to both employee costs ($3.5 million) and materials and contracts ($4.5 million). This strategy aims to reduce expenditure by $8 million. The projected employee cost on the current establishment was in excess of $5.3 million above the IPART approved LTFP target and materials and contracts and other expenses was $2 million in excess of the target. Projected income based on current council policies was trending $900,000 below the target.

This resulted in a $ 8 million gap.

Model 2 – Forecast Result without budget reduction/savings strategies applied Outlines the position of Council based on current income and expenditure trends/obligations and the approved Special Rate Variation. It highlights that without cost reduction strategies Council will not be in a sustainable position and achieve operating surplus in the short and long term projections.

Model 3 – New Rates 2021 Proposal – IPART Approved Model Outlines the IPART approved Long Term Financial Plan (LTFP) Model which outlines a multi-year permanent Special Rate Variation of 5.8% each year for 5 years from 2022/23 plus projected Expenditure Savings of $12m over 3 years from 2022/23. The combined effect of these 2 measures is projected to resolve the unprofitable financial position of council and instill sustainable positive financial outcomes over the 10 years of the LTFP. Model 4 – Forecast without application of the Budget Strategy and SRV based on historical trend Highlighted the deteriorating financial results of Georges River Council without the corrective action of a Special Rate Variation and ongoing savings of $12 million over 3 years. This model highlights that if left unaddressed, Council would inevitably lead to council being unable to fulfil its mandated obligations.

In addition, Council’s income was to be adversely affected by the termination of a current Special Rate Variation (from the former Hurstville City Council) with effect from 1 July 2021. This will reduce income by $2.3 million.

67

68

Georges River Council // Resourcing Strategy 2022/23

Detailed Financial Models

Other revenues

Other Expenses

Result Net of Capital Grants – Surplus/(Deficit)

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

1,211

17,583

241

17,342

2,983

19,767

0

19,767

(26,936)

(25,692)

(129,837)

(22,819)

(42,024)

(64,994)

176,540

13,786

16,784

4,718

21,921

0

21,921

0

(28,861)

50,782

(132,742)

(22,979)

(43,072)

(66,691)

183,524

14,131

17,203

14,501

14,148

16,648

118,266

$ '000

2,775

46,703

(5)

2024/25 Estimate

2,737

16,241

43,039

(125,883)

(22,260)

Materials and Contracts

Total Operating Expenditure

(62,631) (40,992)

Employee Costs

Operating Expenditure

168,922

16,372 13,447

Grants and Contributions - Capital

Total Operating Revenue

13,801

1,761

15,843

112,844

$ '000

$’000 107,698

2023/24 Estimate

2022/23 BUDGET

Grants and Contributions - Operating

Interest and investment revenue

User Charges and Fees

Rates and Annual Charges

Operating Revenue

Current Situation Income Statement

5,268

22,899

0

22,899

0

(30,295)

53,194

(137,759)

(24,651)

(44,145)

(68,963)

190,953

14,483

17,631

14,863

2,935

17,062

123,979

$ '000

Estimate

2025/26

3,779

21,833

0

21,833

0

(31,741)

53,574

(141,602)

(24,617)

(45,203)

(71,782)

195,176

14,831

18,054

15,221

3,142

17,470

126,458

$ '000

Estimate

2026/27

3,683

22,153

0

22,153

0

(33,199)

55,352

(144,076)

(24,672)

(46,241)

(73,163)

199,428

15,172

18,470

15,571

3,355

17,873

128,987

$ '000

Estimate

2027/28

Current Situation – Based on the Adopted 2022/23 Budget with partial savings/reduction strategies applied

Detailed Financial Models 2028/29

4,061

22,955

0

22,955

0

(32,919)

55,874

(147,901)

(25,239)

(47,304)

(75,358)

203,775

15,522

18,894

15,930

3,580

18,283

131,566

$ '000

Estimate

2029/30

1,963

21,291

0

21,291

0

(33,397)

54,688

(153,481)

(26,470)

(48,392)

(78,619)

208,169

15,878

19,328

16,296

3,764

18,705

134,198

$ '000

Estimate

2030/31

1,518

21,290

0

21,290

0

(34,284)

55,574

(157,113)

(27,662)

(49,504)

(79,947)

212,687

16,243

19,772

16,671

3,985

19,135

136,881

$ '000

Estimate

2031/32

869

21,097

0

21,097

0

(34,858)

55,955

(161,257)

(28,271)

(50,642)

(82,344)

217,212

16,617

20,228

17,055

4,118

19,576

139,618

$ '000

Estimate

69

(1,498,883) (103,712) (1,602,595)

(1,582,828)

Total Equity

1,602,595

(1,479,116) (103,712)

1,582,828

(34,756)

0

0

(34,678)

0

0

(18,134) (596) 0 (16,026) (34,756)

1,637,351

1,440,969 17,660 3,468 1,462,097

EQUITY Retained Earnings Revaluation Reserve

Net Assets

Total Liabilities

Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities

(18,639) (596) 0 (15,443) (34,678)

1,617,506

Total Assets

LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities

1,428,254 17,660 2,649 1,448,563

160,718 14,154 (368) 165 585 175,254

$ '000

151,686 16,879 (368) 161 585 168,943

Estimate

Estimate

$’000

(1,624,516)

(1,520,804) (103,712)

1,624,516

(35,086)

0

0

(18,046) (596) 0 (16,444) (35,086)

1,659,602

1,451,909 17,660 4,137 1,473,706

172,353 13,157 (368) 169 585 185,896

$ '000

2024/25

2023/24

2022/23

DRAFT BUDGET

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

Current Situation Statement of Financial Position

(1,647,415)

(1,543,703) (103,712)

1,647,415

(35,452)

0

0

(17,851) (596) 0 (17,005) (35,452)

1,682,867

1,461,577 17,660 4,894 1,484,131

185,278 13,068 (368) 173 585 198,736

$ '000

Estimate

2025/26

(1,669,248)

(1,565,536) (103,712)

1,669,248

(35,958)

0

0

(17,662) (596) 0 (17,700) (35,958)

1,705,206

1,469,974 17,660 5,476 1,493,110

198,601 13,101 (368) 177 585 212,096

$ '000

Estimate

2026/27

(1,691,401)

(1,587,689) (103,712)

1,691,401

(35,519)

0

0

(16,883) (596) 0 (18,040) (35,519)

1,726,920

1,477,101 17,660 6,120 1,500,881

212,530 13,111 (368) 181 585 226,039

$ '000

Estimate

2027/28

(1,714,356)

(1,610,644) (103,712)

1,714,356

(35,376)

0

0

(16,199) (596) 0 (18,581) (35,376)

1,749,732

1,484,708 17,660 6,564 1,508,932

227,192 13,205 (368) 186 585 240,800

$ '000

Estimate

2028/29

(1,735,647)

(1,631,935) (103,712)

1,735,647

(35,626)

0

0

(15,644) (596) 0 (19,386) (35,626)

1,771,273

1,492,037 17,660 6,808 1,516,505

241,072 13,289 (368) 190 585 254,768

$ '000

Estimate

2029/30

(1,756,937)

(1,653,225) (103,712)

1,756,937

(36,386)

0

0

(16,077) (596) 0 (19,713) (36,386)

1,793,323

1,498,679 17,660 6,852 1,523,191

256,123 13,598 (368) 194 585 270,132

$ '000

Estimate

2030/31

(1,778,034)

(1,674,322) (103,712)

1,778,034

(37,260)

0

0

(16,360) (596) 0 (20,304) (37,260)

1,815,294

1,504,947 17,660 6,696 1,529,303

271,673 13,902 (368) 199 585 285,991

$ '000

Estimate

2031/32

70

Georges River Council // Resourcing Strategy 2022/23 (41,500) (21,115)

(40,670) (21,402)

6,904 144,782 151,686

Cash and Cash Equivalents - End of the Year

160,718

9,032 151,686

0 0

1,030

1,271

(125) (125)

2,571 16,784

1,625 16,372

(64,411) (42,420) (22,932) 0 0 0 30,147

(62,933) (40,354) (21,612) (5) 0 0 28,431

$ '000

$’000

115,584 16,197 14,151 0 13,978 0

Estimate

DRAFT BUDGET

110,115 15,767 14,006 0 13,447 0

2023/24

2022/23

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

Statement of Cash Flows

Current Situation

172,353

11,635 160,718

0 0

(41,500) (20,424)

1,030

2,843 17,203

(66,273) (42,904) (23,239) 0 0 0 32,059

119,339 16,604 14,505 0 14,027 0

$ '000

Estimate

2024/25

185,278

12,925 172,353

0 0

(41,729) (20,083)

1,030

2,985 17,631

(68,402) (44,577) (24,439) 0 0 0 33,008

123,807 17,016 14,868 0 14,735 0

$ '000

Estimate

2025/26

198,601

13,323 185,278

0 0

(41,750) (19,472)

1,030

3,194 18,054

(71,087) (45,048) (24,965) 0 0 0 32,795

126,383 17,425 15,186 0 14,901 0

$ '000

Estimate

2026/27

212,530

13,929 198,601

0 0

(41,980) (19,063)

1,030

3,417 18,470

(72,823) (46,722) (24,994) 0 0 0 32,992

128,911 17,829 15,538 0 15,253 0

$ '000

Estimate

2027/28

227,192

14,662 212,530

0 0

(42,000) (18,520)

1,030

3,556 18,894

(74,817) (47,811) (25,421) 0 0 0 33,182

131,488 18,238 15,895 0 15,610 0

$ '000

Estimate

2028/29

241,072

13,880 227,192

0 0

(42,000) (17,898)

1,030

3,744 19,328

(77,814) (48,925) (26,496) 0 0 0 31,778

134,119 18,659 16,261 0 15,974 0

$ '000

Estimate

2029/30

256,123

15,051 241,072

0 0

(42,000) (17,238)

1,030

3,960 19,772

(79,620) (49,386) (27,351) 0 0 0 32,289

136,800 19,088 16,635 0 16,123 0

$ '000

Estimate

2030/31

271,673

15,550 256,123

0 0

(42,000) (16,638)

1,030

4,104 20,228

(81,753) (50,522) (28,113) 0 0 0 32,188

139,535 19,528 17,019 0 16,494 0

$ '000

Estimate

2031/32

71

< 30

Cash Coverage Ratio

Cash

coverage

of

Repairs & Maintenance as a % of WDV of Assets

(Expressed as a % of Gross Cost of Assets)

Remaining useful Life of Assets

(Measures Council's 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

Current Situation

64.5%

4.8

100.0%

102.2%

57.0

25.0

2%

10%

0.8

205.1

1.9

82.1%

0.6%

DRAFT BUDGET

2022/23

63.6%

5.2

100.0%

102.4%

55.0

15.0

12%

5%

0.8

No Debt

2.0

82.5%

1.9%

Estimate

2023/24

62.7%

5.9

99.9%

100.9%

54.0

11.0

7%

4%

0.7

No Debt

2.2

82.7%

2.8%

Estimate

2024/25

61.7%

6.5

100.4%

99.9%

51.0

11.0

7%

4%

0.7

No Debt

2.5

83.0%

3.0%

Estimate

2025/26

60.7%

7.1

100.1%

99.9%

49.0

11.0

7%

2%

0.7

No Debt

2.7

83.0%

2.1%

Estimate

2026/27

59.7%

7.8

100.1%

99.9%

48.0

11.0

5%

2%

0.6

No Debt

3.0

82.9%

2.0%

Estimate

2027/28

58.8%

8.4

100.0%

99.9%

47.0

11.0

4%

2%

0.6

No Debt

3.3

82.9%

2.2%

Estimate

2028/29

57.8%

8.8

100.0%

99.9%

46.0

11.0

5%

2%

0.6

No Debt

3.5

82.9%

1.0%

Estimate

2029/30

56.9%

9.3

99.7%

99.9%

46.0

11.0

6%

2%

0.6

No Debt

3.7

82.9%

0.8%

Estimate

2030/31

56.0%

9.7

99.7%

99.9%

46.0

11.0

5%

2%

0.6

No Debt

3.9

82.8%

0.4%

Estimate

2031/32

72

Georges River Council // Resourcing Strategy 2022/23

Other Expenses

Georges River Council // 2022 DRAFT Resourcing Strategy

Result Net of Capital Grants – Surplus/(Deficit)

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

1,903

18,275

241

18,034

(5)

(25,692)

43,731

(125,171)

(22,254)

Materials and Contracts

Total Operating Expenditure

(62,251) (40,666)

Employee Costs

Operating Expenditure

5,133

21,918

0

21,918

(27,546)

49,464

(127,004)

(22,164)

(40,940)

(63,900)

176,468

13,786

168,902

13,447

Total Operating Revenue

Other revenues

16,785

16,372

Grants and Contributions - Capital

2,685 14,127

1,761 13,781

16,241

112,844

15,843

107,698

$ '000

$’000

2023/24 Estimate

2022/23 BUDGET

Grants and Contributions - Operating

Interest and investment revenue

User Charges and Fees

Rates and Annual Charges

Operating Revenue

Model 1 Income Statement

7,401

24,605

0

24,605

0

(29,038)

53,643

(129,836)

(22,308)

(41,962)

(65,566)

183,479

14,131

17,204

14,479

2,751

16,648

118,266

$ '000

Estimate

2024/25

2026/27

6,531

24,586

0

24,586

0

(32,061)

56,647

(138,545)

(23,912)

(44,038)

(70,595)

195,192

14,831

18,055

15,197

3,181

17,470

126,458

$ '000

Estimate

Page 85 of 101

7,988

25,620

0

25,620

0

(30,543)

56,163

(134,776)

(23,963)

(43,007)

(67,806)

190,939

14,483

17,632

14,840

2,943

17,062

123,979

$ '000

Estimate

2025/26

Model 1 – Based on Draft 2022/23 Budget with savings/reduction strategies applied

Detailed Financial Models 2027/28

8,059

26,530

0

26,530

0

(32,000)

58,530

(140,947)

(23,951)

(45,050)

(71,946)

199,477

15,172

18,471

15,547

3,427

17,873

128,987

$ '000

Estimate

2028/29

7,676

26,572

0

26,572

0

(32,587)

59,159

(144,698)

(24,502)

(46,086)

(74,110)

203,857

15,522

18,896

15,905

3,685

18,283

131,566

$ '000

Estimate

2029/30

5,191

24,521

0

24,521

0

(33,560)

58,081

(150,202)

(25,715)

(47,146)

(77,341)

208,283

15,879

19,330

16,270

3,901

18,705

134,198

$ '000

Estimate

2030/31

5,171

24,946

0

24,946

0

(34,128)

59,074

(153,760)

(26,890)

(48,232)

(78,638)

212,834

16,244

19,775

16,644

4,155

19,135

136,881

$ '000

Estimate

2031/32

4,313

24,543

0

24,543

0

(35,021)

59,564

(157,825)

(27,480)

(49,342)

(81,003)

217,389

16,618

20,230

17,027

4,320

19,576

139,618

$ '000

Estimate

73

$ '000

$’000

1,497,351 103,712 1,601,063

1,475,433 103,712

1,579,145

EQUITY Retained Earnings Revaluation Reserve

Total Equity

1,601,063

1,579,145

(34,083)

0

0 (34,525)

0

0

(17,731) (596) 0 (15,756) (34,083)

1,635,146

1,441,318 17,660 3,369 1,462,347

Net Assets

Total Liabilities

Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities

(18,579) (596) 0 (15,350) (34,525)

1,613,670

Total Assets

LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities

1,428,783 17,660 2,550 1,448,993

158,319 14,140 (368) 123 585 172,799

Estimate

BUDGET

147,463 16,877 (368) 120 585 164,677

2023/24

2022/23

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

1,625,668

1,521,956 103,712

1,625,668

(34,406)

0

0

(17,643) (596) 0 (16,167) (34,406)

1,660,074

1,452,511 17,660 4,038 1,474,209

172,371 13,151 (368) 126 585 185,865

$ '000

Estimate

2024/25

1,651,288

1,547,576 103,712

1,651,288

(34,778)

0

0

(17,463) (596) 0 (16,719) (34,778)

1,686,066

1,462,361 17,660 4,795 1,484,816

187,836 13,068 (368) 129 585 201,250

$ '000

Estimate

2025/26

1,675,874

1,572,162 103,712

1,675,874

(35,277)

0

0

(17,274) (596) 0 (17,407) (35,277)

1,711,151

1,470,868 17,660 5,377 1,493,905

203,793 13,104 (368) 132 585 217,246

$ '000

Estimate

2026/27

1,702,404

1,598,692 103,712

1,702,404

(34,849)

0

0

(16,513) (596) 0 (17,740) (34,849)

1,737,253

1,479,624 17,660 6,021 1,503,305

220,479 13,117 (368) 135 585 233,948

$ '000

Estimate

2027/28

1,728,976

1,625,264 103,712

1,728,976

(34,717)

0

0

(15,847) (596) 0 (18,274) (34,717)

1,763,693

1,487,993 17,660 6,465 1,512,118

238,006 13,214 (368) 138 585 251,575

$ '000

Estimate

2028/29

1,753,497

1,649,785 103,712

1,753,497

(34,978)

0

0

(15,312) (596) 0 (19,070) (34,978)

1,788,475

1,495,589 17,660 6,709 1,519,958

254,857 13,302 (368) 141 585 268,517

$ '000

Estimate

2029/30

1,778,443

1,674,731 103,712

1,778,443

(35,723)

0

0

(15,737) (596) 0 (19,390) (35,723)

1,814,166

1,502,817 17,660 6,753 1,527,230

273,106 13,613 (368) 0 585 286,936

$ '000

Estimate

2030/31

1,802,986

1,699,274 103,712

1,802,986

(36,580)

0

0

(16,011) (596) 0 (19,973) (36,580)

1,839,566

1,509,352 17,660 6,597 1,533,609

295,975 13,922 (368) (4,157) 585 305,957

$ '000

Estimate

2031/32

74

Georges River Council // Resourcing Strategy 2022/23 (41,500) (21,584)

(40,670) (21,832)

147,463

Cash and Cash Equivalents - End of the Year

Georges River Council // 2022 DRAFT Resourcing Strategy

3,984 143,479

158,319

10,856 147,463

0

600

841

(125)

2,531 16,785

(63,494) (41,455) (22,500) 0 0 0 32,440

(62,646) (41,332) (23,393) (5) 0 0 25,941

1,625 16,372

115,584 16,197 14,130 0 13,978 0

$ '000

110,115 15,767 13,988 0 13,447 0

$’000

2023/24 Estimate

2022/23 BUDGET

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 1 Statement of Cash Flows 2024/25

172,371

14,052 158,319

(41,500) (20,885)

600

2,811 17,204

(65,155) (41,797) (22,564) 0 0 0 34,937

119,339 16,604 14,483 0 14,027 0

$ '000

Estimate

2025/26

2026/27

203,793

15,957 187,836

(41,750) (19,866)

600

3,229 18,055

(69,907) (43,886) (24,256) 0 0 0 35,823

126,383 17,425 15,163 0 14,901 0

$ '000

Estimate

Page 87 of 101

187,836

15,465 172,371

(41,729) (20,510)

600

2,987 17,632

(67,254) (43,427) (23,747) 0 0 0 35,975

123,807 17,016 14,845 0 14,735 0

$ '000

Estimate

2027/28

220,479

16,686 203,793

(41,980) (19,422)

600

3,487 18,471

(71,613) (45,518) (24,267) 0 0 0 36,108

128,911 17,829 15,513 0 15,253 0

$ '000

Estimate

2028/29

238,006

17,527 220,479

(42,000) (18,847)

600

3,657 18,896

(73,576) (46,578) (24,679) 0 0 0 36,374

131,488 18,238 15,871 0 15,610 0

$ '000

Estimate

2029/30

254,857

16,851 238,006

(42,000) (18,193)

600

3,877 19,330

(76,545) (47,664) (25,735) 0 0 0 35,044

134,119 18,659 16,235 0 15,975 0

$ '000

Estimate

2030/31

273,106

18,249 254,857

(42,000) (17,497)

600

4,128 19,775

(78,318) (47,972) (26,584) 0 0 0 35,746

136,800 19,088 16,608 0 16,124 0

$ '000

Estimate

2031/32

295,975

22,869 273,106

(42,000) (16,868)

600

4,302 20,230

(80,420) (45,064) (27,327) 0 0 0 39,737

139,535 19,528 16,990 0 16,495 0

$ '000

Estimate

75

6%

2%

> 0%

< 30

64.5%

4.0

> 60% 1%

100.0%

102.2%

57.0

> 3 Mths

= > 100%

= > 100%

25.0

0.8

> =1.0x

< 30

210.5

1.7

82.1%

1.1%

63.6%

4.7

100.0%

102.4%

55.0

15.0

1%

5%

0.7

No Debt

1.9

82.5%

3.2%

2023/24 Estimate

2022/23 BUDGET

> 2.0x

> 1.5x

> 80%

0%

Benchmark

Georges River Council // 2022 DRAFT Resourcing Strategy

(Expressed as a % of Gross Cost of Assets) Repairs & Maintenance as a % of WDV of Assets

Debt Service Cover Ratio (Measures Council's capacity to service debt) Capital Works & Asset renewals (Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge) Own Source Revenue Growth (Measures Council's increase of own source revenue) Debtor Days Outstanding - Rates Debtor Days Outstanding - Other Debtors (net of Rates) (Measures Council's management of Debtors) Debtor Collection Rate - Rates Debtor Collection Rate - Other Debtors (net of Rates) (Measures Council's Collection Rate of Debtors) Cash Coverage Ratio (Measures Council's Cash coverage of Expenditure) Remaining useful Life of Assets

(Measures Council's liquidity)

Operating Performance Ratio (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) Unrestricted Current Ratio

Model 1 Key Performance Indicators 2024/25

62.7%

5.7

99.9%

100.9%

54.0

11.0

5%

4%

0.7

No Debt

2.2

82.7%

4.5%

Estimate

2025/26

2026/27

60.6%

7.4

100.1%

99.9%

49.0

11.0

7%

2%

0.6

No Debt

2.8

83.0%

3.7%

Estimate

Page 88 of 101

61.7%

6.5

100.4%

99.9%

51.0

11.0

7%

4%

0.7

No Debt

2.5

83.0%

4.6%

Estimate

2027/28

59.7%

8.3

100.1%

99.9%

48.0

11.0

5%

2%

0.7

No Debt

3.2

82.9%

4.5%

Estimate

2028/29

58.7%

9.1

100.0%

99.9%

47.0

11.0

4%

2%

0.6

No Debt

3.6

82.9%

4.2%

Estimate

2029/30

57.8%

9.7

100.0%

99.9%

46.0

11.0

6%

2%

0.6

No Debt

3.9

82.9%

2.7%

Estimate

2030/31

56.9%

10.5

99.7%

99.9%

46.0

11.0

6%

2%

0.6

No Debt

4.1

82.9%

2.7%

Estimate

2031/32

56.0%

11.4

99.7%

99.9%

46.0

11.0

5%

2%

0.6

No Debt

4.4

82.9%

2.2%

Estimate

76

Georges River Council // Resourcing Strategy 2022/23 (22,254)

Other Expenses

(6,078)

Result Net of Capital Grants – Surplus/(Deficit)

Georges River Council // 2022 DRAFT Resourcing Strategy

10,294

241

10,053

(5)

(25,692)

35,750

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

(133,152)

(45,197)

Materials and Contracts

Total Operating Expenditure

(65,701)

Employee Costs

Operating Expenditure

(2,944)

13,841

0

13,841

(27,546)

41,387

(134,925)

(22,164)

(45,587)

(67,174)

176,312

13,786

168,902

13,447

Total Operating Revenue

Other revenues

16,785

16,372

14,127

13,781

2,529

16,241

112,844

$ '000

Grants and Contributions - Capital

1,761

15,843

107,698

$’000

2023/24 Estimate

2022/23 Forecast

Grants and Contributions - Operating

Interest and investment revenue

User Charges and Fees

Rates and Annual Charges

Operating Revenue

Model 2 Income Statement

(1,025)

16,179

0

16,179

0

(29,038)

45,217

(137,986)

(22,308)

(46,725)

(68,953)

183,203

14,131

17,204

14,479

2,475

16,648

118,266

$ '000

Estimate

2024/25

2026/27

(2,598)

15,457

0

15,457

0

(32,061)

47,518

(147,151)

(23,912)

(49,039)

(74,200)

194,669

14,831

18,055

15,197

2,658

17,470

126,458

$ '000

Estimate

Page 89 of 101

(794)

16,838

0

16,838

0

(30,543)

47,381

(143,159)

(23,963)

(47,890)

(71,306)

190,540

14,483

17,632

14,840

2,544

17,062

123,979

$ '000

Estimate

2025/26

Model 2 – Forecast Result without budget reduction/savings strategies applied 2027/28

(1,421)

17,050

0

17,050

0

(32,000)

49,050

(149,777)

(23,951)

(50,168)

(75,658)

198,827

15,172

18,471

15,547

2,777

17,873

128,987

$ '000

Estimate

2028/29

(2,168)

16,728

0

16,728

0

(32,587)

49,315

(153,760)

(24,502)

(51,323)

(77,935)

203,075

15,522

18,896

15,905

2,903

18,283

131,566

$ '000

Estimate

2029/30

(5,009)

14,321

0

14,321

0

(33,560)

47,881

(159,497)

(25,715)

(52,503)

(81,279)

207,378

15,879

19,330

16,270

2,996

18,705

134,198

$ '000

Estimate

2030/31

(5,401)

14,374

0

14,374

0

(34,128)

48,502

(163,294)

(26,890)

(53,710)

(82,694)

211,796

16,244

19,775

16,644

3,117

19,135

136,881

$ '000

Estimate

2031/32

(6,646)

13,584

0

13,584

0

(35,021)

48,605

(167,605)

(27,480)

(54,945)

(85,180)

216,210

16,618

20,230

17,027

3,141

19,576

139,618

$ '000

Estimate

77

$ '000

$’000

1,585,005

1,571,164

Total Equity

Georges River Council // 2022 DRAFT Resourcing Strategy

1,481,293 103,712

1,467,452 103,712

EQUITY Retained Earnings Revaluation Reserve

1,585,005

(35,654)

0 0

1,571,164

(36,182)

0 0

(18,495) (596) 0 (16,563) (35,654)

1,620,659

1,441,318 17,660 3,369 1,462,347

Net Assets

Total Liabilities

Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities

(19,386) (596) 0 (16,200) (36,182)

1,607,346

Total Assets

LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities

1,428,783 17,660 2,550 1,448,993

143,824 14,106 (368) 165 585 158,312

Estimate

Forecast

141,098 16,877 (368) 161 585 158,353

2023/24

2022/23

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

1,601,184

1,497,472 103,712

1,601,184

(36,024)

0 0

(18,426) (596) 0 (17,002) (36,024)

1,637,208

1,452,511 17,660 4,038 1,474,209

149,515 13,098 (368) 169 585 162,999

$ '000

Estimate

2024/25

1,618,022

1,514,310 103,712

1,618,022

(36,376)

0 0

(18,198) (596) 0 (17,582) (36,376)

1,654,398

1,462,361 17,660 4,795 1,484,816

156,190 13,002 (368) 173 585 169,582

$ '000

Estimate

2025/26

1,650,529

1,546,817 103,712

1,650,529

(36,465)

0 0

(17,214) (596) 0 (18,655) (36,465)

1,686,994

1,479,624 17,660 6,021 1,503,305

170,246 13,045 (368) 181 585 183,689

$ '000

Estimate

2027/28

Page 90 of 101

1,633,479

1,529,767 103,712

1,633,479

(36,919)

0 0

(18,027) (596) 0 (18,296) (36,919)

1,670,398

1,470,868 17,660 5,377 1,493,905

163,067 13,032 (368) 177 585 176,493

$ '000

Estimate

2026/27

1,667,257

1,563,545 103,712

1,667,257

(36,305)

0 0

(16,492) (596) 0 (19,217) (36,305)

1,703,562

1,487,993 17,660 6,465 1,512,118

177,913 13,128 (368) 186 585 191,444

$ '000

Estimate

2028/29

1,681,578

1,577,866 103,712

1,681,578

(36,536)

0 0

(15,899) (596) 0 (20,041) (36,536)

1,718,114

1,495,589 17,660 6,709 1,519,958

184,547 13,202 (368) 190 585 198,156

$ '000

Estimate

2029/30

1,695,952

1,592,240 103,712

1,695,952

(37,323)

0 0

(16,337) (596) 0 (20,390) (37,323)

1,733,275

1,502,817 17,660 6,753 1,527,230

192,328 13,500 (368) 0 585 206,045

$ '000

Estimate

2030/31

1,709,536

1,605,824 103,712

1,709,536

(38,224)

0 0

(16,625) (596) 0 (21,003) (38,224)

1,747,760

1,509,352 17,660 6,597 1,533,609

204,298 13,793 (368) (4,157) 585 214,151

$ '000

Estimate

2031/32

78

Georges River Council // Resourcing Strategy 2022/23 (41,500) (21,706)

(40,670) (21,832)

141,098

Cash and Cash Equivalents - End of the Year

Georges River Council // 2022 DRAFT Resourcing Strategy

(2,381) 143,479

143,824

2,726 141,098

0 0

600

841

(125) (125)

2,409 16,785

(66,811) (46,146) (22,500) 0 0 0 24,432

(65,246) (45,097) (23,393) (5) 0 0 19,576

1,625 16,372

115,584 16,197 14,130 0 13,978 0

$ '000

110,115 15,767 13,988 0 13,447 0

$’000

2023/24 Estimate

2022/23 Forecast

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 2024/25

149,515

5,691 143,824

0

(41,500) (21,142)

600

2,554 17,204

(68,514) (46,542) (22,564) 0 0 0 26,833

119,339 16,604 14,483 0 14,027 0

$ '000

Estimate

2025/26

2026/27

163,067

6,877 156,190

0

(41,750) (20,383)

600

2,712 18,055

(73,486) (48,870) (24,256) 0 0 0 27,260

126,383 17,425 15,163 0 14,901 0

$ '000

Estimate

Page 91 of 101

156,190

6,675 149,515

0

(41,729) (20,896)

600

2,601 17,632

(70,726) (48,359) (23,747) 0 0 0 27,571

123,807 17,016 14,845 0 14,735 0

$ '000

Estimate

2027/28

170,246

7,179 163,067

0

(41,980) (20,072)

600

2,837 18,471

(75,299) (50,689) (24,267) 0 0 0 27,251

128,911 17,829 15,513 0 15,253 0

$ '000

Estimate

2028/29

177,913

7,667 170,246

0

(42,000) (19,615)

600

2,889 18,896

(77,373) (51,873) (24,679) 0 0 0 27,282

131,488 18,238 15,871 0 15,610 0

$ '000

Estimate

2029/30

184,547

6,634 177,913

0

(42,000) (19,084)

600

2,986 19,330

(80,455) (53,080) (25,735) 0 0 0 25,718

134,119 18,659 16,235 0 15,975 0

$ '000

Estimate

2030/31

192,328

7,781 184,547

0

(42,000) (18,522)

600

3,103 19,775

(82,345) (53,388) (26,584) 0 0 0 26,303

136,800 19,088 16,608 0 16,124 0

$ '000

Estimate

2031/32

204,298

11,970 192,328

0

(42,000) (18,031)

600

3,139 20,230

(84,567) (50,653) (27,327) 0 0 0 30,001

139,535 19,528 16,990 0 16,495 0

$ '000

Estimate

79

(Expressed as a % of Gross Cost of Assets) Repairs & Maintenance as a % of WDV of Assets

Debt Service Cover Ratio (Measures Council's capacity to service debt) Capital Works & Asset renewals (Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge) Own Source Revenue Growth (Measures Council's increase of own source revenue) Debtor Days Outstanding - Rates Debtor Days Outstanding - Other Debtors (net of Rates) (Measures Council's management of Debtors) Debtor Collection Rate - Rates Debtor Collection Rate - Other Debtors (net of Rates) (Measures Council's Collection Rate of Debtors) Cash Coverage Ratio (Measures Council's Cash coverage of Expenditure) Remaining useful Life of Assets

(Measures Council's liquidity)

Operating Performance Ratio (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) Unrestricted Current Ratio

Model 2 Key Performance Indicators

6%

7%

> 0%

< 30

64.5%

3.2

> 60% 1%

100.0%

102.2%

57.0

> 3 Mths

= > 100%

= > 100%

25.0

0.8

> =1.0x

< 30

149.1

1.5

82.1%

-4.1%

63.6%

3.2

100.0%

102.4%

54.0

15.0

6%

5%

0.7

No Debt

1.4

82.5%

-1.8%

2023/24 Estimate

2022/23 Forecast

> 2.0x

> 1.5x

> 80%

0%

Benchmark

2024/25

62.7%

3.3

99.9%

100.9%

54.0

11.0

5%

4%

0.7

No Debt

1.4

82.7%

-0.6%

Estimate

2025/26

61.7%

3.5

100.4%

99.9%

51.0

11.0

7%

4%

0.7

No Debt

1.5

83.0%

-0.5%

Estimate

2026/27

60.6%

3.6

100.1%

99.9%

49.0

11.0

7%

2%

0.6

No Debt

1.6

82.9%

-1.5%

Estimate

2027/28

59.7%

3.8

100.1%

99.9%

48.0

11.0

5%

2%

0.7

No Debt

1.7

82.9%

-0.8%

Estimate

2028/29

58.7%

3.9

100.0%

99.9%

47.0

11.0

4%

2%

0.6

No Debt

1.7

82.9%

-1.2%

Estimate

2029/30

57.8%

3.9

100.0%

99.9%

46.0

11.0

6%

2%

0.6

No Debt

1.8

82.8%

-2.7%

Estimate

2030/31

56.9%

3.9

99.7%

99.9%

46.0

11.0

6%

2%

0.6

No Debt

1.8

82.8%

-2.8%

Estimate

2031/32

56.0%

4.2

99.7%

99.9%

46.0

11.0

5%

2%

0.6

No Debt

1.8

82.8%

-3.4%

Estimate

80

Georges River Council // Resourcing Strategy 2022/23 $ '000

$’000

3,426

5,891

9,175

(3,270)

Result Net of Capital Grants – Surplus/(Deficit)

Georges River Council // 2022 DRAFT Resourcing Strategy

113,652

80,618

551

32,483

(7,944)

6,124

1,061

5,063

(71)

(20,631)

(19,557) (74)

25,765

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)

Surplus/(Deficit) prior to Depreciation & Financing Costs Depreciation

Total Operating Expenditure

(21,935) (120,256 )

(21,606) (120,568 )

Other Expenses

(58,730) (39,591)

(56,508) (42,454)

Employee Costs

Materials and Contracts

Operating Expenditure

146,021

11,871

Total Operating Revenue

172,682

36,304

Grants and Contributions - Capital

Other revenues

14,068

11,153

Grants and Contributions - Operating

8,877

14,679

Interest and investment revenue

15,496

92,784

User Charges and Fees

94,979

2019/20 BUDGET

2018/19 ACTUAL

Rates and Annual Charges

Operating Revenue

Model 3 Income Statement

(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

(4,466)

13,750

2,975

10,775

(25)

(24,894)

35,694

(128,520 )

(23,635)

(44,390)

(60,495)

164,214

12,295

18,216

15,364

1,050

15,148

102,141

$ '000

BUDGET

2021/22

2023/24

3,875

20,169

20,169

(27,546)

47,715

(128,387 )

(22,282)

(43,855)

(62,250)

176,102

12,922

16,294

16,148

2,663

15,921

112,154

$ '000

Estimate

Page 93 of 101

1,908

17,801

17,801

(2)

(25,692)

43,495

(126,031 )

(22,100)

(43,508)

(60,423)

169,526

12,605

15,893

15,751

2,730

15,530

107,017

$ '000

Estimate

2022/23

6,097

22,799

22,799

0

(29,038)

51,837

(131,258 )

(22,429)

(44,952)

(63,877)

183,095

13,245

16,702

16,551

2,707

16,320

117,570

$ '000

Estimate

2024/25

6,636

23,754

23,754

0

(30,543)

54,297

(136,235 )

(24,088)

(46,070)

(66,077)

190,532

13,574

17,118

16,964

2,874

16,726

123,276

$ '000

Estimate

2025/26

5,124

22,653

22,653

0

(32,061)

54,714

(140,042 )

(24,039)

(47,176)

(68,827)

194,756

13,899

17,529

17,371

3,089

17,127

125,741

$ '000

Estimate

2026/27

6,597

24,529

24,529

0

(32,000)

56,529

(142,479 )

(24,081)

(48,259)

(70,139)

199,008

14,218

17,932

17,771

3,313

17,519

128,255

$ '000

Estimate

2027/28

6,161

24,505

24,505

0

(32,587)

57,092

(146,267 )

(24,634)

(49,368)

(72,265)

203,359

14,545

18,344

18,180

3,549

17,921

130,820

$ '000

Estimate

2028/29

Model 3 – New Rates 2021 Proposal – IPART Approved Model (Multi-year permanent Special Rate Variation of 5.8% each year for 5 years from 2022/23 plus projected Expenditure Savings of $12m over 3 years from 2022/23)

81

1,528,942

1,522,818

Total Equity

Georges River Council // 2022 DRAFT Resourcing Strategy

1,425,230 103,712

1,419,106 103,712

EQUITY Retained Earnings Revaluation Reserve

1,528,942

1,522,818

(38,129)

(625)

(1,125) (40,406)

(625)

(1,125)

(20,318) (596) (500) (16,090) (37,504)

1,567,071

1,393,139 17,660 1,975 1,412,774

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

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

130,690 23,475 (368) 161 585 154,543

$ '000

BUDGET

2021/22

1,560,833

1,457,121 103,712

1,560,833

(36,017)

0

0

(19,551) (596) (125) (15,745) (36,017)

1,596,850

1,414,544 17,660 1,581 1,433,785

143,403 19,279 (368) 166 585 163,065

$ '000

BUDGET

2022/23

2023/24

1,598,803

1,495,091 103,712

1,599,803

(34,196)

0

0

(18,251) (596) 0 (15,349) (34,196)

1,632,999

1,441,318 17,660 3,369 1,462,347

156,340 13,921 (368) 174 585 170,652

$ '000

Estimate

Page 94 of 101

1,578,634

1,474,922 103,712

1,578,634

(34,525)

0

0

(19,030) (596) 0 (14,899) (34,525)

1,613,159

1,428,783 17,660 2,550 1,448,993

146,909 16,870 (368) 170 585 164,166

$ '000

Estimate

2024/25

1,621,602

1,517,890 103,712

1,621,602

(34,520)

0

0

(18,174) (596) 0 (15,750) (34,520)

1,656,122

1,452,511 17,660 4,038 1,474,209

168,593 12,925 (368) 178 585 181,913

$ '000

Estimate

2025/26

1,645,356

1,541,644 103,712

1,645,356

(34,852)

0

0

(17,963) (596) 0 (16,293) (34,852)

1,680,208

1,462,361 17,660 4,795 1,484,816

182,139 12,853 (368) 183 585 195,392

$ '000

Estimate

2026/27

1,668,009

1,564,297 103,712

1,668,009

(35,353)

0

0

(17,786) (596) 0 (16,971) (35,353)

1,703,362

1,470,868 17,660 5,377 1,493,905

196,157 12,896 (368) 187 585 209,457

$ '000

Estimate

2027/28

1,692,538

1,588,826 103,712

1,692,538

(34,881)

0

0

(16,990) (596) 0 (17,295) (34,881)

1,727,419

1,479,624 17,660 6,021 1,503,305

210,790 12,916 (368) 191 585 224,114

$ '000

Estimate

2028/29

1,717,043

1,613,331 103,712

1,717,043

(34,702)

0

0

(16,287) (596) 0 (17,819) (34,702)

1,751,745

1,487,993 17,660 6,465 1,512,118

226,195 13,020 (368) 195 585 239,627

$ '000

Estimate

82

Georges River Council // Resourcing Strategy 2022/23 166,710

Cash and Cash Equivalents - End of the Year

Georges River Council // 2022 DRAFT Resourcing Strategy

(15,326) 182,036 143,338

(23,372) 166,710

(500) (500)

(48,972) (28,859)

(70,245) (24,355)

(500) (500)

1,763

3,443

5,987

140 9,529

4,282 14,068

(57,357) (40,095) (24,141) (71)

(57,877) (42,989) (19,448) (74)

6,143 36,304

95,098 16,881 8,548 0 7,372 (248)

$ '000

92,586 13,325 11,644 238 11,736 248

$’000

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 3 Statement of Cash Flows 2020/21

130,690

(12,648) 143,338

(500) (500)

(40,529) (11,541)

5,000

2,622 21,366

0 (607)

(60,104) (42,030) (23,259) (55)

88,144 16,527 11,088 0 9,004 78

$ '000

BUDGET

2021/22

143,403

12,713 130,690

(500) (500)

(32,120) (7,967)

4,575

1,362 18,216

0 21,180

(60,236) (43,957) (23,434) (25)

105,884 15,359 14,967 0 12,622 0

$ '000

BUDGET

2022/23

2023/24

156,340

9,431 146,909

0

(41,500) (21,945)

600

2,752 16,294

0 31,285

(61,800) (44,398) (22,522) 0

114,875 15,878 16,151 0 13,101 0

$ '000

Estimate

Page 95 of 101

146,909

3,506 143,403

(125) (125)

(40,670) (22,408)

600

2,345 15,893

0 25,463

(61,269) (43,669) (23,294) (2)

109,481 15,488 15,753 0 12,975 0

$ '000

Estimate

2024/25

168,593

12,253 156,340

0

(41,500) (21,514)

600

2,772 16,702

0 33,679

(63,476) (44,776) (22,686) 0

118,636 16,277 16,556 0 13,418 0

$ '000

Estimate

2025/26

182,139

13,546 168,593

0

(41,729) (21,170)

600

2,921 17,118

0 34,636

(65,534) (46,522) (23,873) 0

123,104 16,681 16,969 0 13,811 0

$ '000

Estimate

2026/27

196,157

14,018 182,139

0

(41,750) (20,554)

600

3,138 17,529

0 34,501

(68,149) (47,013) (24,383) 0

125,667 17,803 17,332 0 13,964 0

$ '000

Estimate

2027/28

210,790

14,633 196,157

0

(41,980) (20,136)

600

3,373 17,932

0 34,708

(69,815) (48,761) (24,399) 0

128,179 17,476 17,733 0 14,295 0

$ '000

Estimate

2028/29

226,195

15,405 210,790

0

(42,000) (19,583)

600

3,523 18,344

0 34,938

(71,741) (49,897) (24,812) 0

130,742 17,877 18,141 0 14,628 0

$ '000

Estimate

83

11.7 35.3

99.8% 101.3%

6.2

71.9%

< 30 < 30

= > 100% = > 100%

> 3 Mths

> 60% 0.6%

5%

> 0%

1%

1.9

> =1.0x

1.9

> 1.5x 27.5

72.5%

> 80%

> 2.0x

-2.8%

ACTUAL

2018/19

0%

Benchmar k

Georges River Council // 2022 DRAFT Resourcing Strategy

(Expressed as a % of Gross Cost of Assets) Repairs & Maintenance as a % of WDV of Assets

Debt Service Cover Ratio (Measures Council's capacity to service debt) Capital Works & Asset renewals (Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge) Own Source Revenue Growth (Measures Council's increase of own source revenue) Debtor Days Outstanding - Rates Debtor Days Outstanding - Other Debtors (net of Rates) (Measures Council's management of Debtors) Debtor Collection Rate - Rates Debtor Collection Rate - Other Debtors (net of Rates) (Measures Council's Collection Rate of Debtors) Cash Coverage Ratio (Measures Council's Cash coverage of Expenditure) Remaining useful Life of Assets

(Measures Council's liquidity)

Operating Performance Ratio (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) Unrestricted Current Ratio

Key Performance Indicators

Model 3

0.5%

67.6%

4.3

100.2%

100.1%

54.5

11.0

-2%

1.1

20.5

1.9

84.3%

-6.8%

BUDGET

2019/20

0.6%

66.5%

3.4

96.3%

89.2%

58.0

50.0

5%

0.9

28.5

1.8

79.8%

BUDGE T -5.9%

2020/21

0.6%

64.9%

3.8

100.7%

103.7%

56.0

35.0

1%

0.8

33.3

1.7

79.6%

-5.1%

BUDGET

2021/22

0.6%

63.6%

4.6

100.4%

102.4%

53.0

15.0

4%

0.7

No Debt

1.9

81.6%

2.4%

Estimate

2023/24

Page 96 of 101

0.6%

64.5%

4.0

99.9%

102.3%

56.0

25.0

5%

0.8

217.3

1.7

81.3%

1.2%

Estimate

2022/23

0.6%

62.7%

5.4

99.9%

100.9%

52.0

11.0

4%

0.7

No Debt

2.1

81.8%

3.7%

Estimate

2024/25

0.6%

61.7%

6.1

100.4%

99.9%

50.0

11.0

4%

0.7

No Debt

2.4

82.1%

3.8%

Estimate

2025/26

0.6%

60.6%

6.9

100.0%

99.9%

48.0

11.0

2%

0.6

No Debt

2.6

82.1%

2.9%

Estimate

2026/27

0.6%

59.7%

7.7

100.1%

99.9%

47.0

11.0

2%

0.7

No Debt

3.0

82.1%

3.6%

Estimate

2027/28

0.6%

58.7%

8.4

100.0%

99.9%

46.0

11.0

2%

0.6

No Debt

3.3

82.0%

3.3%

Estimate

2028/29

84

Georges River Council // Resourcing Strategy 2022/23 11,871

Other revenues

(21,606)

Other Expenses

(3,270)

Result Net of Capital Grants – Surplus/(Deficit)

Georges River Council // 2022 DRAFT Resourcing Strategy

113,652

80,618

551

32,483

(74)

(19,557)

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)

(42,454)

Materials and Contracts

Total Operating Expenditure

(56,508)

Employee Costs

Operating Expenditure

172,682

36,304

Grants and Contributions - Capital

Total Operating Revenue

11,153

Grants and Contributions - Operating

5,891

14,679

Interest and investment revenue

User Charges and Fees

$ '000

$’000

(7,944)

6,124

1,061

5,063

(71)

(20,631)

25,765

(120,256)

(21,935)

(39,591)

(58,730)

146,021

9,175

14,068

8,877

3,426

15,496

94,979

BUDGET

ACTUAL

92,784

2019/20

2018/19

Rates and Annual Charges

Operating Revenue

Model 4 Income Statement

(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

(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

Page 97 of 101

(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

2024/25

(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

Model 4 – Forecast without application of the Budget Strategy and SRV based on historical trend

(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

(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

85

1,522,818 1,419,106 103,712 1,522,818

EQUITY Retained Earnings Revaluation Reserve

Total Equity

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

(1,125)

(23,468) (596) (500) (14,717) (39,281)

Net Assets

Total Liabilities

Non-Current Liabilities Borrowings Provisions Total Non-Current Liabilities

LIABILITIES Current Liabilities Payables Income received in advance Borrowings Accruals & Provisions Total Current Liabilities

1,563,224

Total Assets

1,393,139 17,660 1,975 1,412,774

143,338 10,479 (290) 185 585 154,297

166,710 10,707 (538) 155 455 177,489 1,366,713 17,660 1,362 1,385,735

2019/20 BUDGET $ '000

2018/19 ACTUAL $’000

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 4 Statement of Financial Position

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

2020/21 BUDGET $ '000

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

2021/22 Estimate $ '000

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

2022/23 Estimate $ '000

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

2023/24 Estimate $ '000

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

2024/25 Estimate $ '000

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

2025/26 Estimate $ '000

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

2026/27 Estimate $ '000

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

2027/28 Estimate $ '000

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

2028/29 Estimate $ '000

86

Georges River Council // Resourcing Strategy 2022/23 (48,972) (28,859)

(70,245) (24,355)

Georges River Council // 2022 DRAFT Resourcing Strategy

166,710

182,036

Cash and Cash Equivalents - End of the Year

(15,326)

Cash and Cash Equivalents - Beginning of the Year 143,338

166,710

(23,372)

(500) (500)

1,763

3,443

(500) (500)

4,282 14,068

6,143 36,304

5,987

(57,357) (40,095) (24,141) (71) 0

(57,877) (42,989) (19,448) (74) 140 9,529

95,098 16,881 8,548 0 7,372 (248)

$ '000

92,586 13,325 11,644 238 11,736 248

$’000

2019/20 BUDGET

2018/19 ACTUAL

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 4 Statement of Cash Flows 2020/21

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

2021/22

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

2022/23

2023/24

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

Page 99 of 101

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

2024/25

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

2025/26

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

2026/27

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

2027/28

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

2028/29

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

87

(Expressed as a % of Gross Cost of Assets) Repairs & Maintenance as a % of WDV of Assets

Cash Coverage Ratio (Measures Council's Cash coverage of Expenditure) Remaining useful Life of Assets

Debtor Collection Rate - Rates Debtor Collection Rate - Other Debtors (net of Rates) (Measures Council's Collection Rate of Debtors)

Capital Works & Asset renewals (Measures Council's expenditure on renewal of assets in relation to the annual Depreciation charge) Own Source Revenue Growth (Measures Council's increase of own source revenue) Debtor Days Outstanding - Rates Debtor Days Outstanding - Other Debtors (net of Rates) (Measures Council's management of Debtors)

(Measures Council's capacity to service debt)

Debt Service Cover Ratio

(Measures Council's liquidity)

Operating Performance Ratio (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) Unrestricted Current Ratio

Key Performance Indicators

Model 4

71.9%

> 60% 0.6%

6.2

> 3 Mths

1%

101.3%

35.3

< 30

= > 100%

11.7

< 30

99.8%

5%

> 0%

= > 100%

1.0

27.3

> =1.0x

> 2.0x

3.7

> 1.5x

0.5%

67.6%

5.2

100.5%

99.9%

54.5

11.0

-2%

1.0

45.1

1.9

84.3%

BUDGE T -6.8%

ACTUA L -2.9%

72.5%

2019/20

2018/19

> 80%

0%

Benchmar k

0.6%

66.5%

3.9

96.3%

89.2%

58.0

50.0

5%

0.9

28.5

1.8

79.8%

BUDGE T -5.9%

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%

Estimate

2024/25

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

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

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

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

Resourcing Strategy 2022-2023 georgesriver.nsw.gov.au

88

Georges River Council // Resourcing Strategy 2022/23