Draft Annual Business Plan & Budget 2018/19 Purpose Budget - - PowerPoint PPT Presentation
informed Draft Annual Business Plan & Budget 2018/19 Purpose Budget overview Cost of Business Budget achievements for 2017/18 and highlights for 2018/19 Operating and Capital project proposals Rates information
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Strategic Direction Oct 2017 Budget Bids Nov 2017 EM Workshop 1 Operating Bids 13 March EM Workshop 2 Capital Bids & Rating Scenarios 27 March Adoption of draft ABP and Budget 24 April Public Meeting 23 May EM Workshop 3 12 June Adoption of ABP and Budget 26 June
The Annual Business Plan and Budget process spans for over 9 months
Aligning Annual Community Survey to draft budget
6 Annual Community survey feedback topic Alignment to the 2018/19 Draft Budget
“Build Burnside” – community identified this as the most important focus area Provision & maintenance of infrastructure the most important Council service (followed by the provision and maintenance of street trees);
Footpaths 56% of respondents are satisfied with the provision and maintenance of footpaths
Youth Services 72% of the respondents consider Youth Services important. Of those that ranked youth services as important 38% suggested Council should have a skate park and 18% wanted more recreation facilities for youth.
Participatory Budgeting 61% of respondents would like to be involved in a participatory budgeting process
Shared Community Facilities 8 in 10 (81 per cent) residents are in favour of shared community spaces. Majority of respondents suggested Kensington Gardens Reserve and Kensington Park Oval
Place Making 63% of respondents expressed support for projects that improve business areas
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Cost of Business: Cost increases Cost Shifting Asset Maintenance Level of Debt Financial Sustainability Community Expectations: Increased services Low Rates Capital Investment
imposed savings target
Cost of Council business – 2018/19
Local Government Price Index for expenses (existing services) 2.90% Less: Adjustment for cost already accounted for in the 2017/18 Plan
Add: Adjustment for ongoing costs not accounted for in the 2017/18 Plan
Services Levy ($4k) 0.2% 0.1% Add: Additional significant ongoing cost pressures forecast in 2018/19
way
Index - $47k) 0.3% 1.0% 0.4% 0.1%
Increased Cost of Business 4.2%
In Spite of Council’s Cost of Business being 4.20%, Council is proposing a rates increase of 2.70%. The shortfall will be covered by the self imposed savings target of $590k (1.50% of the rates revenue). This is the third year that Council has aimed for a 1.50% savings target.
Key Items to note:
Second lowest rates increase (2.30%) Savings target achieved ($560k) No reduction in services On target to achieve Adopted Budget Surplus of $1.01m by the end of this financial year Capital spend as at end of April $10.47m
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A 2.70 per cent average rate increase – Lower than the Dec Local Government Price Index of 2.90 per cent No reduction in services Delivery of a sustainable budget with a $475k Operating Surplus $590k in targeted savings $4.7m investment in new and upgrade capital projects (such as Magill Village redevelopment, Brown Hill Keswick Creek, new footpaths & drainage) $10.3m investment in renewal and replacement projects (such as continuing the Burnside Library Collection, renewing footpaths, kerbs and roads) $0.44m in new services and projects Debt position per draft Budget as at 30 June 2019 $15.77m
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Not achieving this will reduce the Surplus.
160.90 Full Time Equivalents
assumed that the cost from this development will impact in 2019/20
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Key driver Per 2017/18 Adopted LTFP Per Draft 2018/19 Budget
Rates 2.50% plus 1.0% organic Growth 2.70%
plus 1.0% organic Growth
Cost Index 2.50% 2.30% Dec 2017 Consumer Price Index 2.90% Dec 2017 Local Government Price Index Employee Costs 2.00% 2.00% Staffing 160.9 Full Time Equivalents 160.9 Full Time Equivalents Savings Target 1.50% of Rates Revenue ($585k) 1.50% of Rates Revenue (approx $590k) Operating Projects $400k $444k Capital $4.49m (new ) $10.5m (renewal) $4.67m (new ) $10.34m (renewal) Operating Surplus $976k $475k (reduction in surplus mainly due to the impact from the Recyclables Waste Ban $400k) Debt $15.99m $16.3m (per draft) $15.8m (Q3)
(Debt has increased compared to the LTFP primarily due to the decline in Operating Surplus by $501k)
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NEW SERVICES Hard Waste Promotion Community Participation Events Burnside Walks Part 2 Short Term Employee Under Equity and Diversity TOTAL DRAFT NEW SERVICES $49K OPERATING PROJECTS Burnside Work For The Dole Conservation Project Canopy Action Plan – Implementation Efficiency and Effectiveness Program Mount Osmond Road Landslide Works Records Backlog Project Community Surveys For High Profile Projects Dial Before You Dig Request Automation Hills Face Reserve Vegetation Management Plan Pilot Project - Place Making Grants Resilient East: Regional Climate Change Action Local History and Cultural Officer TOTAL DRAFT OPERATING PROJECTS $395K
Item Proposed for funding ($)
New / Upgrade Capital $4,665,000 Renewal / Replacement Capital $10,343,500 TOTAL $ 15,008,500 COMPARISON WITH 2017/18 LTFP
NEW RENEWAL TOTAL Per 2017/18 ADOPTED LTFP
$4,490,000 $10,511,500 $15,001,500
Per Draft 2018/19 Capital Budget (above)
$4,665,000 $10,343,500 $15,008,500 Difference $175,000 ($168,000)
$7,000
Draft Capital Projects - New or Upgrade($4.67m)
Depot Pallet Racking Mobile Workforce and Device Management Participatory Budgeting Project New Open Space Infrastructure New Open Space Furniture and Fittings Disability Discrimination Act Compliance Project Skate Park Research Miller Reserve - Amenities Upgrade ERA Water Connection Costs Civic Centre Upgrades Constable Hyde Redevelopment Footpath New Construction Program Kensington Gardens Masterplan & Works Conyngham Street Depot Drainage New Program Magill Village Redevelopment Brownhill Keswick Creek Project
Draft Capital Projects - Renewal or Replacement ($10.34m)
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Civic Centre Pond Pump Sports Field Lighting Replacement Corporate Mobile Device Refresh Plant Replacement - Depot Based Minor Plant Bus Shelter Renewal Program Streetscape Signage Renewal Records Management System Upgrade Hills Face Trails Infrastructure Emergency Program Road Cracksealing Program Retaining Walls Renewal Core Network Upgrades Alexandra Prescott Conservation Management Plan Actions Drainage Renewal Program Fencing Renewal Buildings Emergency Program Open Space Furniture and Fittings Renewal Traffic Signals Light Emitting Diode (LED) Upgrade Tennis Courts Public Lighting Renewal Program Traffic Calming Program Plant Replacement - Depot Based Light Fleet Playgrounds Burnside Library Collection Renewal Program Open Space Renewal Hazelwood Park Civic Centre Renewal Works Civic Centre Light Fleet Replacement Community Buildings Program Creek Rehabilitation Works Plant Replacement - Depot Based Major Plant Footpath Renewal Program Kerb Program Road Resurfacing Program
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There will be no change in Rating Policy in 2017/18 and Vacant Land will continue to be differentially rated at 150% of the Residential Rate in the Dollar.
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5 Year Cumulative Rates Increase (presented in ascending order)
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Based on 2017/18 information
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What a ratepayer would pay for a $700k property in other Council areas* *Based on 2017/18 information
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(in millions)
City of Burnside: Current debt repayment term - 15 years Burnside debt as at 21 May 2018 - $11.0m City of Burnside Ratios: 2018/19 Debt to Income 34% (limit 50%) 2018/19 Net Financial Liabilities Ratio 47% (limit 100%)
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*Debt levels based on 2018/19 Forecast Number of Rateable Properties – Based on 2017/18 data
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Annual Community Survey
( 20 November – 9 December 2017)
Draft Budget endorsed for Consultation (24 April 2018
Council Meeting)
Budget Consultation (7 May – 1 June
2018)
Elected Member Budget Workshop
(12 June 2018)
Adoption of Budget
(26 June 2018 Council meeting)
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You can provide ide your feedb dbac ack in the follow
g ways:
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Please feel free to write down your questions
provided. All responses will be published on the website by cob 28 May 2018