How did we get here? - - PowerPoint PPT Presentation

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How did we get here…?

• 30 years of rate pegging
• Cost shifting by NSW Government
• Government requirements on asset reporting
• Our unique environment

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Becoming Fit for the Future What are the Fit for the Future options?

1. Scale and capacity + Joint Organisation = Template 2 2. Rural Council – Councils with a current, or projected, population under 10,000 3. Voluntary Merger 4. A model for the Far West

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What does a Fit for the Future council look like?

A Fit for the Future council is one that is:

• Sustainable
• Efficient
• Effectively manages infrastructure and delivers services

for communities

• Has the scale and capacity to engage effectively across

community, industry and government.

• What does a Fit for the Future council do?
• What is the starting point for assessment?
• Who would be part of the North Coast Joint Organisation?

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• Part of the Fit for Future package is a self-assessment tool to help Council determine whether their past

performance indicates that they are “Fit for the Future”. A summary of the self-assessment results are as follows:

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How do we compare?

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What are the influences and drivers affecting our position?

• Rates/annual charges
• Grant revenue
• Depreciation
• Asset renewal expenditure
• Asset revaluations
• Written down value of infrastructure
• Agreed service level expectations
• Raw materials/labour costs
• Cash flow requirements
• Past/present/future borrowings
• Current and future interest rates
• Annual operating costs
• Asset maintenance
• Cost shifting by State Government
• Only 3% share of Federal tax revenue

What are the future threats and opportunities?

• Government grants
• Service level reviews (essential/non-

essential)

• Rating of State forests/crown reserves
• Review of depreciation
• Rating revenue
• Review of fees and charges
• Alternative revenue streams
• Infrastructure revaluations
• Greater use of S.94 funds and internal

reserves

• Raw material and labour cost fluctuations
• Shift towards whole of life costing for any

new asset purchases

• Subsidised borrowings (TCorp)
• Interest rate fluctuations
• Intergenerational equity
• Population fluctuations
• Fluctuations in operating expenses due to
• ne off grant payments (flood damage/RMS)

• Our back story
• Organisational realignment 2012 around effectiveness, productivity outcomes,

customer focus

• Departmental and functional reviews, including processes - ongoing
• Community Satisfaction Survey and Planning Process Review Survey
• Service Review process utilising ACELG process SmartGov Toolkit
• Special Rate Variation secured 2013
• Establishment of Governance arrangements around the SRV including a committee
• f council to oversee productivity initiatives and progress of works. Examples

include land and property review, fees and charges review

• SRV Committee supported by Internal Program Boards./Project framework
• Appointment of a CFO
• Establishment of an internal audit function
• Development of a Leadership and Engagement Framework – horizontal and vertical

(Councillors, Senior Leaders, Leaders, and Operational Team Leaders)

• Implementation of a procurement roadmap to streamline procurement and deliver

more cost efficient outcomes

• Working regionally – Waste, Libraries, Internal Audit, Asset Management
• Regional collaboration e.g. WHS, E-Learning, Planning, Asset Management

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Fit for the Future is a journey…

4 Stages of becoming Fit for the Future:

• Self assessment
• Preparing a roadmap and submit by June 2015
• Review by expert panel
• FFF Councils begin implementation of roadmap

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Where are we heading…

The fit for the future road ahead…..

• Financial Sustainability Framework
• Asset Framework, (condition data, backlog,

revaluation and depreciation)

• Participation in the MIDROC Regional Asset project
• Service Reviews, consolidating work to date for

refinement into FFF submission along with consideration of service levels

• Integration of other initiatives into FFF submission

e.g. Procurement Roadmap, Land and Property Review, modelling re rateable land

• Shared servicing
• Regional collaboration
• Informing and engaging with our community

• Questions?

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Thought starters…