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
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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
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Ensure sustainability through positive net results
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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.
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City Operational Services
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City Technical Services
Executive Services
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Premium Facilities
Communications and Engagement
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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.
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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. •
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. •
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
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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.
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Recruitment holding period of 16-week salary savings prior to appointment.
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Maintaining a vacancy rate of 7% across all areas of Council.
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Christmas shut-down period.
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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. 19
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.
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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.
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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.
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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
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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
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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.
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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
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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
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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.
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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: • • • • • •
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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
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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
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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.
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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.
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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.
3.3 Georges River is a 30 minute city
Our built environment 4.1 New development should make Georges River more liveable, vibrant and sustainable.
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.
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.
5.1 Leadership focuses on innovation and improving the customer experience.
5.2 The three spheres of government work together to improve services and facilities in our area.
5.3 Georges River is known for being environmentally and culturally rich and enhances its metropolitan position as a destination for people and business.
6.1 Our community’s voice is considered in planning the area’s future.
6.2 Our decisions are based on evidence which consider financial impacts, the environment and impacts on future generations.
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.
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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%.
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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.
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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.
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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
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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
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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.
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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
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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.
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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:
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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
