Council Plan - City of Whittlesea
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Council Plan 2013 – 17 An action plan for Year 3 (2015/2016) of the City of Whittlesea’s Council Plan 2013-17 ‘Shaping Our Future’ Contents A message from the Mayor..................................................................................................................... 4 Our City – Update ................................................................................................................................... 5 Reporting and Accountability ................................................................................................................. 6 Performance Report ........................................................................................................................... 6 Community Consultation .................................................................................................................... 7 Finalisation and Adoption ................................................................................................................... 7 Reviewed actions for 2015/16 ................................................................................................................ 8 Strategic Objectives ............................................................................................................................... 9 Future Direction 1: Inclusive and Engaged Community...................................................................... 9 Future Direction 2: Accessibility in, out and around our City ........................................................... 15 Future Direction 3: Growing our Economy ....................................................................................... 23 Future Direction 4: Places and Spaces to connect people ................................................................ 27 Future Direction 5: Health and Wellbeing ........................................................................................ 30 Future Direction 6: Living Sustainable .......................................................................................... 35 Future Direction 7: Good Corporate Governance ............................................................................ 37 Strategic Resource Plan (SRP) 2015-2019 ............................................................................................. 41 1. Introduction .................................................................................................................................. 42 Purpose of SRP .................................................................................................................................. 42 SRP Objectives................................................................................................................................... 42 2. Planning and Accountability Framework ...................................................................................... 44 3. Strategic Resource Plan (Overview) .............................................................................................. 45 Statutory requirements .................................................................................................................... 45 4. Objectives...................................................................................................................................... 47 Financial Sustainability...................................................................................................................... 47 Financial performance indicators ................................................................................................. 50 Notes to indicators ........................................................................................................................ 51 Non-financial resources ................................................................................................................ 52 5. Other Strategies ............................................................................................................................ 53 Long Term Borrowings ...................................................................................................................... 53 Rating Information ............................................................................................................................ 56 Asset Management ........................................................................................................................... 58 2 Capital Works .................................................................................................................................... 59 Service delivery ................................................................................................................................. 59 6. Key Assumptions ........................................................................................................................... 61 Consumer price index (CPI) ............................................................................................................... 61 Rate increases ................................................................................................................................... 61 Property growth ................................................................................................................................ 61 Wages growth ................................................................................................................................... 61 Government funding......................................................................................................................... 62 Statutory fees.................................................................................................................................... 62 Investment return ............................................................................................................................. 62 Specific assumptions in the SRP........................................................................................................ 62 7. Strategic Resource Plan (Model)................................................................................................... 63 Comprehensive Income Statement .................................................................................................. 64 Balance Sheet ................................................................................................................................ 66 Statement of Changes in Equity .................................................................................................... 68 Statement of Cash Flows............................................................................................................... 70 Statement of Capital Works .......................................................................................................... 71 Statement of Human Resources ................................................................................................... 73 Summary of planned human resources expenditure ................................................................... 82 Summary of planned human resources expenditure (cont’d) ...................................................... 83 8. Glossary ......................................................................................................................................... 84 3 A message from the Mayor The second year of the 2013-2017 Council Plan ‘Shaping Our Future’ has seen Council deliver many exciting and rewarding projects, initiatives and partnerships for the benefit of our community. Our advocacy campaign had much success with the State Election with the “Access Denied” campaign The advocacy success will lead to work in the upcoming year working with the State Government to implement the commitments. Council is already working closely with Public Transport Victoria to extend the train line to Mernda and other work is planned for new schools, police resources and the O’Herns Road/Hume Freeway interchange. Other priorities for the upcoming year are to support the creation of more local jobs, plan for new community buildings, development of several important strategies including the Economic Development Strategy, the Community Building Strategy and a Municipal Library Strategy, as well as implementation of the Open Space Strategy and Integrated Transport Strategy. With the launch last year of the new commitment to customer service, all residents can be assured of high standards when they interact with our service delivery areas. In reviewing the actions for the remaining years of this Council Plan, Council is conscious of the need to continue to deliver high quality services whilst also building infrastructure to support our fast growing municipality. We look forward with excitement to bringing you a high quality program over the next two years. Cr Ricky Kirkham Mayor 4 Our City – Update The City of Whittlesea is one of the fastest growing municipalities in Australia. Over the first two years of this Council Plan, our population has grown by almost 30,000. The population is expected to reach almost 300,000 by 2030, with growth concentrated in areas of Mernda, Doreen, Epping North and Wollert. In 2015, the City’s population will be approximately 194,498. The population is expected to increase to 210,954 by the fourth year of this Council Plan (2013-2017). 5 Reporting and Accountability The City of Whittlesea operates within a legal framework established by the Victorian Parliament through the Local Government Act 1989. The Local Government Act 1989 reflects the recognition given to local government in the Victorian Constitution as well as the insertion of a “Local Government Charter”. This Council Plan is prepared under Section 125 of the Local Government Act. The Municipal Public Health and Wellbeing Plan was incorporated into the Council Plan for the first time in 2013. Section 27 of the Public Health and Wellbeing Act allows Councils to include and integrate public health and wellbeing matters into the Council plan. This review of the Plan incorporates the annual performance plan on the 2014-15 actions. This report provides a status of the actions within each Council Goal, together with a commentary about work completed. Results of the annual performance plan are informing future budget and corporate planning direction. This annual performance report has informed the annual review. Not only does the report allow the success of the plan’s implementation to be monitored, but it provides an opportunity to assess timelines, resources and funding of the 2015/16 actions. The following pages list the updated actions for 2015/16 that will contribute towards achievement of the community’s Strategic Objectives as defined in the Community Plan 2030. This annual review has also assessed the plan against the Charter of Human Rights and Responsibilities Act 2006. While there has been some rescheduling of projects, and the addition of some other projects, there has not been significant change in the overall list of actions for the upcoming financial year. For this reason, the entire Council Plan has not been reprinted. Please read this addendum in conjunction with the original plan, taking the 2015/16 reviewed actions from this document as the version to replace those listed for that year in the original Plan. The review process will be conducted in three stages: Performance Report The first step of this project was to prepare an annual performance report, outlining Council’s performance to date on the 2014/15 actions identified in the Council Plan. 6 Community Consultation In order to ensure that the plan remains relevant to the needs of the community, consultation will be undertaken in a range of ways, from online discussion in our Community Voice forum, via workshops and public exhibition between 8 May 2015 and 5 June 2015. Finalisation and Adoption A councillor sub-committee will consider any submissions made during the public exhibition period and analyse them for inclusion in the final review, which is scheduled to be presented to Council on 23 June 2015. 7 Reviewed actions for 2015/16 This section outlines the actions Council will take under each Future Direction over the next four years to help achieve the community’s aspirations and meet the needs of the Municipal Public Health and Wellbeing Plan. The Theme encompasses the feedback from the community consultation, and enables a range of community concerns to be grouped together. You will see the same themes in the Community Plan. The Strategic Objective is the vision the Community has for the municipality in 2030. These were defined by the community and prioritised by the community. In most Future Directions, there are a number of Strategic Objectives per Theme. Although the legislation requires them to be called a Strategic Objective, they do reflect the vision and aspirations of the community. The Council Goal is what Council can do over the four years to contribute towards the achievement of the community’s vision (ie. the Strategic Vision) by 2030. Although these goals are specific to the 2014/15 year, it is expected they are contributing to the long term vision. The Indicators are what Council will use to measure progress towards achieving that vision. The specific measurements will be applied to the activities undertaken each year under each goal, but the Indicators will be able to track Council’s progress over the four years in contributing to the long term vision. The Council Role indicates Council’s contribution to the achievement of this goal. Council can be a provider and directly undertake work to support a strategic objective. Council can advocate for works on behalf of its community. Council can support the work of others in the role of facilitator. The indicates the goal was specifically developed for the purposes of the Municipal Public Health and Wellbeing Plan. For each year of this plan, there will be specific actions that can be undertaken that will also contribute to the achievement of the goal, and ultimately, the 2030 vision. These actions will be listed under the year for which they have been scheduled. In that year, those actions will be expanded to form the Major Initiatives part of the Annual Budget, and will have specific performance measures in order to report on them. This is also a statutory requirement. 8 Strategic Objectives Future Direction 1: Inclusive and Engaged Community Our City is diverse and that is its strength. People from many countries with different languages, faiths, and customs have made it their home. There are also urban and rural communities. When we are together we learn and grow through each other's experiences. We build skills and capacity so everyone can fully engage and participate in community life. All voices are heard and decision making takes account of all views. Our inclusive, engaged community is resilient and strong. Theme Strategic Objective Community Spirit We encourage the development of community spirit We have access to arts and cultural programs There are festivals that bring us together Participation & Decision Making People are involved in issues that affect them Community decision making is inclusive Diversity We share an open expression of cultural heritage We provide support to new and emerging communities There are programs to promote cultural diversity and address race-based discrimination Municipal Public Health and Wellbeing goal. A highlight* indicates an action that is included in the 2015/16 Budget as a Major Initiative Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action We encourage the development of community spirit 1.1 Council will work to build a stronger sense of community within neighbourhoods and across the municipality, and create new opportunities for social networks and civic engagement Levels of community engagement (from VicHealth indicators/Annual Household Survey) Provider Develop a volunteer strategy providing a coordinated approach for volunteering within Council We encourage the development of community spirit 1.1 Council will work to build a stronger sense of community within neighbourhoods and across the municipality, and create new opportunities for social networks and civic engagement Increased levels of participation in community groups Provider Facilitator Develop the Community Building Strategy* Facilitator Increased perception that there is a strong sense of community Provider Facilitator Develop a comprehensive suite of community health and wellbeing indicators and determinants to inform planning and monitoring for children, young people and their families Complete the multiculturalism and governance project which will develop indicators to assess the impacts of participation in arts and cultural programs 10 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action Increased opportunity to have a say on issues Provider Develop the four year Advocacy Plan* Facilitator We have access to arts and cultural programs 1.3 Council will take a strategic approach to planning for the future needs of art across the municipality Develop a guide for future works in public art Provider No specific actions identified for 2015/16 There are festivals that bring us together 1.4 Council will co-ordinate and review the range of festivals provided to bring people together Increase in satisfaction of attendees at all festivals and events Provider No specific actions identified for 2015/16 Level of participation in community arts and events (VicHealth Indicators) Provider Community has access to data Advocate People are involved in the issues that affect them 1.5 Council will support local volunteer groups to act as advocates to State and Federal governments with a stronger voice Facilitator No specific actions identified for 2015/16 Facilitator No specific actions identified for 2015/16 11 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action 1.6 Council will align planning, policy and practices to the circumstances and aspirations of the community, as expressed by the community Council planning activities are informed by community engagement processes Provider Implement Year 3 priority actions of the Disability Action Plan Community decision making is inclusive 1.7 Council will facilitate an effective community engagement process by providing information to the community about all relevant factor for consideration Consultation and Engagement Framework methodology is applied to all community engagement processes Provider Develop indicators of inclusive/engaged community using standardised measures Participation and decision making 1.8 Council will facilitate partnerships and continuous dialogue with children, young people, parents and the community Staff and partners are trained in consultation approaches Advocate No specific actions identified for 2015/16 Facilitator Provider Actions are informed by local consultation data Advocate No specific actions identified for 2015/16 Provider Facilitator 1.9 Council supports and endorses communities to develop their community emergency plan Plan endorsed by Municipal Emergency Management Planning Committee (MEMPC) Facilitator No specific actions identified for 2015/16 12 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action We share an open expression of cultural heritage 1.10 Council will provide opportunities for the sharing of cultural heritage Culture is celebrated within the community Provider No specific actions identified for 2015/16 We provide support to new and emerging communities 1.11 Council actively advocates for services and infrastructure in our growth areas There are programs to promote cultural diversity and address race-based discrimination Facilitator Community Satisfaction Survey Advocate Advocate to State and Federal Governments for funding to improve community infrastructure for connectedness within the community Policy shifts at State and Federal Government 1.12 Council will provide opportunities for people to connect Families in growth areas connect with service and support networks Facilitator No specific actions identified for 2015/16 1.13 Council will provide programs to engage diverse community and address race based discrimination Increase number of participants in programs Provider No specific actions identified for 2015/16 1.14 Council will partner with Aboriginal communities to achieve the best possible opportunities and outcomes Number of instances Aboriginal Engagement Protocols used Provider No specific actions identified for 2015/16 Aboriginal Cultural Heritage Study completed Provider No specific actions identified for 2015/16 Number of codes/clubs engaged meeting criteria Facilitator No specific actions identified for 2015/16 1.15 Council will develop a welcoming, inclusive and healthy sporting environment program based on the VicHealth Everyone Wins & Healthy Sporting Environment approach 13 14 Future Direction 2: Accessibility in, out and around our City Access in, out and around our community happens in many ways, and for many reasons. Public transport, roads for vehicles, walking and bike paths, communications and digital networks allow us to connect with the services we need. The local services that are provided must match our community need, and services that cannot be provided locally are easily accessible. The design and construction of our built infrastructure enables access for all. Theme Strategic Outcome Access to Services We can access hospitals We can access health services We can access expanded library services We can access mental health services We can access community meeting spaces We can access childcare, kindergartens and playgroups We can access council services We can access affordable housing We can access youth services Transport We can access community transport 15 Theme Strategic Outcome Our road network provides adequate access to the municipality and beyond We have walking paths We can cycle safely We can access public transport Access to Information We can access broadband We can access online services Municipal Public Health and Wellbeing goal A highlight* indicates an action that is included in the 2015/16 Budget as a Major Initiative . 16 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action We can access hospitals 2.1 Council works with partners/stakeholders to ensure hospital based medical services are provided to our community Funding submissions made Facilitator Establishment of stakeholder group Advocate Advocate for funding for existing and new hospitals to service the existing and future northern region of Melbourne and the outlying rural areas We can access health services 2.2 Council will work with partners/stakeholders to ensure health, dental and community services are provided to our community Facilitator Identified number of health services Provider Advocate for funding to extend hospital beds at the Northern Hospital Advocate We can access expanded library services 2.3 Council will plan to provide for expanded library services Reduction in number of library users travelling more than 20km to access library services Provider Develop a Library Plan for Mernda and Epping North We can access mental health services 2.4 Council will work with partners/stakeholders to ensure mental services are provided to our community, with an initial priority for youth mental health services Increase in number of new mental health services located in municipality Advocate No specific actions identified for 2015/16 We can access community meeting spaces 2.5 Council will deliver capital works construction of new spaces Projects delivered on time and on budget Provider Complete design of Ashley Park Community Activity Centre* We can access community meeting spaces 2.5 Council will deliver capital works construction of new spaces Projects delivered on time and on budget Provider Commence upgrade of Barry Road Community Activity Centre* 17 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action Complete construction of Champions Parade Early Learning Centre* We can access childcare, kindergarten and playgroups 2.6 Council will assist children in the early years to access high quality early childhood education and care, especially in growth area new facilities Participation in high quality early childhood education and care Provider We can access childcare, kindergarten and playgroups 2.7 Council will facilitate access to community and supported playgroups to enable social connections, child development activities and social support Number and location of playgroups Facilitator 2.8 Deliver high quality services and supports for children, young people and families Development of social capital system plan Provider No specific actions identified for 2015/16 We can access Council services 2.9 Council will provide services in a timely, accessible and effective manner Customer Satisfaction Survey rates Council services higher than previous year Provider Complete construction of new Animal Welfare Shelter* We can access affordable housing 2.10 Work with other levels of Government, developers and stakeholders to explore options for low cost housing are available to our community Regional Affordable Housing Group established Facilitator Explore public housing options / low cost housing into new developments No specific actions identified for 2015/16 Advocate No specific actions identified for 2015/16 Advocate Advocate 18 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action Facilitator Develop Affordable Housing Policy No specific actions identified for 2015/16 We can access youth services 2.11 Council will provide opportunities for young people in the municipality to be engaged and supported Number of young people supported Provider We can access community transport 2.12 Council will develop a community transport framework to ensure a service is provided to residents Increased access to community transport Facilitator Commence development of the Community Transport Framework as per the Integrated Transport Strategy Our road network provides adequate access to the municipality and beyond 2.13 Council will develop a construction strategy to support future Council road upgrades Construction strategy completed Provider Completion of construction strategy for Grange Drive 2.14 Council will ensure our road network integrates with other transport elements Integrated Transport Strategy completed and actions from relevant years completed Provider Implement priority actions from the Integrated Transport Strategy (ITS)* Advocate Advocate 19 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action 2.15 Council will advocate to the State Government for improvements to major roads within the municipality Relevant information provided to other levels of government prior to Budget deliberations Advocate Advocate for the extension of Edgars Road and Findon Road and continue to advocate for improvements to major road networks 2.16 Council will maintain our local road network with capital funding for rehabilitation of roads, footpaths and roadside infrastructure Works completed on time and on budget Provider Road improvements for Memorial Avenue 2.17 Council will deliver capital works design and construction programs for extra carriageways, extension, duplications on identified Council roads Works completed on time and on budget Complete the Road Safety Strategy Provider Complete signalisation of Bassetts Road and Bridge Inn Road* Provider Complete design and preliminary works for the signalisation of Painted Hills Road and Bridge Inn Road* 20 Strategic Objective Council Goal Indicators Our road network provides adequate access to the municipality and beyond 2.17 Council will deliver capital works design and construction programs for extra carriageways, extension, duplications on identified Council roads Works completed on time and on budget We have walking paths 2.18 Council will work towards better connectivity of safe walking paths User perception of safety, walkability and connectivity are mentioned Council Role Provider Provider 2015-2016 Reviewed Action Continue of urbanisation (kerb and channel construction) of McKimmies Road* Construct shared pathway connections to Doreen South education precinct Improvement to existing walking network identified and prioritised 21 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action We can cycle safely 2.19 Council will work towards delivering safer cycling options to the community with State Government and other stakeholders Increased kilometres of bicycle paths and lanes Provider Implement cycling actions for Bicycle Plan Facilitator Road injury statistics Less connections via roads with new path connections We can access public transport 2.20 Council will advocate to the State Government for improved public transport servicing this municipality Relevant information provided to other levels of government prior to Budget deliberations Advocate Advocate for high quality town centre and local access outcomes from the Mernda Rail Extension Advocate We can access broadband We can access online services 2.21 Council will work with partners and stakeholders to address access and promote use of the NBN 2.22 Council will ensure a whole of Council strategy guides our online community engagement Advocate for extension of light rail network (Number 86 Tram line) Number of programs to promote NBN Advocate for more public transport and expansion in growth areas Facilitator Advocate Review existing Intelligent Community Strategy Provider Increased participation online Implement phase one of the Seniors Virtual Village 22 Future Direction 3: Growing our Economy A diverse economy offers varied career opportunities so people can live and work in Whittlesea. Business attraction requires infrastructure and transport planning, affordable housing, skill development and a supportive regulatory environment. We need to work on supporting and developing opportunities for local business like growing the food we need locally. Education facilities offer everyone career and skill development options. Theme Strategic Outcome Employment There are a diverse range of local employment opportunities We have strategies that encourage new business investment Economic Development Local Businesses are supported Our rural land provides sustainable economic development Skill Development There are opportunities for life-long learning Families are supported through all of life’s stages Municipal Public Health and Wellbeing goal A highlight* indicates an action that is included in the 2015/16 Budget as a Major Initiative. Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action 23 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action There are a diverse range of local employment opportunities 3.1 Council will facilitate the delivery of more local jobs for all with a focus on groups who experience social and health inequities, together with an organisational commitment to employing locally Increase in the number of placements undertaken by local students Facilitator Develop a Training and Employment Pathways Strategy targeting local young people who experience significant barriers to education, training and employment in partnership with Whittlesea Youth Commitment 3.2 Council will facilitate the development of industry to support local employment Increase in the number of jobs on offer across the municipality There are a diverse range of local employment opportunities Provider Increase in number of residents working in the municipality Facilitator No specific actions identified for 2015/16 Provider 3.3 Council will build internal capacity and provide local positive social outcomes with Social Procurement (SP) partners Increase in the types of industries on offer across the municipality Provider Develop a social enterprise and social benefit supplier action plan Number of tender and contracts with SP provisions and social benefit deliverables Provider Implement key actions of the Procurement Strategy 2015-2017 3.4 Council will develop partnerships with relevant stakeholders to facilitate further employment opportunities Employment outcomes Advocate No specific actions identified for 2015/16 3.5 Council will promote the municipality to business, as a destination for investment Increase in the number of enquiries regarding business investment Provider Develop Economic Development Strategy Increased opportunities for local businesses 24 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action We have strategies that encourage new business investment 3.6 Council will ensure there is adequately zoned industrial land Number of available industrial zoned parcels of land Provider Continue to plan as part of PSP as well as Thomastown Industrial area review 3.7 Council will provide and assist with the development of training and networking opportunities for small and medium businesses Number of events held per annum Provider No specific actions identified for 2015/16 Local businesses are supported 3.8 Council will advocate for better government benefits for our business community Number of visits to State and Federal Governments Advocate No specific actions identified for 2015/16 Our rural land provides sustainable economic development 3.9 Council will investigate options for using rural land for agricultural production Amount of State and Federal Government funding for Growing our Economy Initiatives Advocate Implement relevant actions from Green Wedge Management Plan Identification of viable options for agricultural production Facilitator Conduct Land Capability Assessment to assess agricultural business potential* Greater number of opportunities Facilitator Investigate reliable ways to capture learning needs of the community and industry to enable needs based planning related learning We have strategies that encourage new business investment There are opportunities for life-long learning 3.10 Council will work with partners to facilitate more learning opportunities 25 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action Families are supported through all of life’s stages 3.11 Council will provide tools and support for families to be strong Family strengthening plan in place Facilitator No specific actions identified for 2015/16 26 Future Direction 4: Places and Spaces to connect people Places, spaces and events bring people together to socialise and access services and also help build our community and an understanding and appreciation of our diversity. Our community hubs provide a central place to meet, shop and have a haircut, go to the doctor, post a letter, do banking, have coffee, visit the library and be entertained. They bring people together. Urban design develops a sense of place built on heritage. Parks and recreation facilities improve community wellbeing and can be used for events and celebrations. There are many pathways to bring people together in all the communities that together make our City. Theme Strategic Outcome Open Space We have open spaces that are welcoming and safe for public gathering Community Hubs We have areas that bring people together around services and entertainment experiences Planning our space Our Urban Design helps build connection to place and the community Leisure & Recreation Our recreation facilities and open spaces are accessible and respond to local need Municipal Public Health and Wellbeing goal A highlight* indicates an action that is included in the 2015/16 Budget as a Major Initiative. Strategic Objective Council Goal Indicators Council Role 2014-2015 Reviewed Action We have open spaces that are welcoming and safe for public gathering 4.1 Council will continue to provide a range of open spaces for use by the community Increased perception of safety in public open space Provider Investigate options for space that encourage events/community gathering spaces 27 Strategic Objective Council Goal Indicators Council Role 2014-2015 Reviewed Action Increased use of open space Provider Finalise Open Space Strategy and develop implementation plan Implement PRACC Business Model We have areas that bring people together around services and entertainment experiences 4.2 Council will develop improved governance models for community facilities New governance model adopted and implemented Provider 4.3 Council will ensure a wide range of community meeting spaces are available Community satisfaction with availability of meeting spaces Provider Develop a bookings policy for community facilities Our urban design helps build connection to place and the community 4.4 Council will work towards strengthening and implementing Council planning tools to build better connections Continual review of Municipal Strategic Statement incorporates new policy and framework Provider Strengthen urban design policy within the Planning Scheme, and investigate urban design guidelines Our recreation facilities and open spaces are accessible and respond to local need 4.5 Council will develop and implement a strategic plan for future leisure centres and aquatic facilities that meet local requirements Implementation of first four year actions from 20 years Major Leisure & Aquatic facility strategy Provider Complete design of Mill Park Leisure Centre redevelopment* 4.6 Council will continue to provide a high quality network of local parks and recreational facilities across the urban and rural areas which are managed for community and environmental benefits Community Satisfaction Survey demonstrates increase in satisfaction with park and facility accessibility Provider Commence construction of Harvest Home Road Soccer Pavilion* 4.7 Council will implement the Recreation Strategy New Epping Soccer Stadium management plan developed Advocate Develop management plan for Epping Soccer Stadium Facilitator Facilitator 28 Strategic Objective Council Goal 4.8 Council will assist with access for everyone to play spaces that are suitable for all ages and abilities Indicators Increased number of suitable play spaces Council Role 2014-2015 Reviewed Action Advocate Implement the Playground Renewal Program Provider Implement the Neighbourhood Park Improvement Program 29 Future Direction 5: Health and Wellbeing A healthy community that supports people through all of life's stages and cares about life-long learning has a sense of wellbeing and belonging. Health services are available locally and easily accessed in community hubs. Support is available for young people, families, seniors and those who are isolated and disadvantaged. Communities are safe places where harm from violence, alcohol and drugs is removed. Access to education, training and information enables lifelong learning for everyone. Theme Safety Schools Healthy Community Strategic Outcome We have a police presence that deters crime and violence We have family violence prevention programs There are crime reduction programs We have disaster community safety and resilience programs Our built form incorporates safety design The number of placement of schools are adequate for our population The quality of schools is high We take a prevention approach to health issues and health policy Municipal Public Health and Wellbeing goal A highlight* indicates an action that is included in the 2015/16 Budget as a Major Initiative. Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action We have a police presence that deters crime and violence 5.1 Council advocates to Victoria Police and the State Government for a police station in Mernda Relevant information provided to other levels of government prior to annual budget deliberations Advocate No specific actions identified for 2015/16 We have family violence prevention programs 5.2 Council will support action to prevent family violence and sexual assault by addressing the underlying causes of gender- based violence and promoting Key partners engaged in planning to address family violence Provider Implement and evaluate initiatives to address factors contributing to family violence in local context Facilitator Advocate 30 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action equal and respectful relationships in the community Strategic framework adopted Provider Implement the Family Violence Strategy 'Safe in our homes, safe in our streets’ Facilitator Advocate Key actions for the 2015/2016 year implemented as specified in the Gender Equity Strategy Provider Facilitator Implement stage one ( 2015/2016 actions) of the Gender Equity Strategy Advocate There are crime reduction programs 5.3 Council will support action to increase community safety, enhance perceptions of community safety and prevent crime across municipality Perceptions of community safety Facilitator We have disaster, community safety and resilience programs 5.4 Council leads regional collaboration to develop regional capacity to respond to all emergency events Regional standard operating guidelines and accompanying training developed and delivered Facilitator Advocate Review Department of Justice Strategic Plan and develop local Community Safety Plan Advocate Advocate to Emergency Management Victoria for accredited Emergency Management Training to be developed and delivered to Local Government Facilitator No specific actions identified for 2015/16 Provider Regional exercise held annually Common procedures and protocols established 5.5 Council will incorporate community resilience into our emergency management planning to build community capacity Increased levels of community involvement in Council's emergency planning process Provider Community based training and planning delivered 31 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action Our built form incorporates safety design 5.6 Council will integrate Crime Prevention Through Environmental Design (CPTED) principles into policy, strategies, design guidelines and capital works to enhance community safety and address crime prevention Safer Design Guidelines reflecting CPTED principles included in audit Facilitator Consider CPTED principles as part of planning scheme review The number and placement of schools are adequate for our population 5.7 Council will work with State Government on a staged plan for the delivery of education facilities in Whittlesea's growth areas Increase in number of schools in growth areas Advocate No specific actions identified for 2015/16 The quality of schools is high 5.8 Council will work with the Department of Education to ensure that new schools in Whittlesea’s growth areas meet the requirements of the local population Local community groups and school committees are connected Advocate No specific actions identified for 2015/16 We take a prevention approach to health issues and health policy 5.9 Council will consider health and wellbeing outcomes and health inequities perspective in planning Health in All Policies (HiAP) principles developed Facilitator Active Whittlesea Framework used to inform planning Provider Advocate Provider Advocate 5.10 Council will plan for growth by supporting the creation of liveable socially connected communities Growth Areas Social Planning Tool (GASPT) informs planning of all new developments across the municipality Facilitator GASPT implemented at City of Whittlesea Provider Advocate Plans identify social recourses needed, when, how and by whom they should be delivered 32 Strategic Objective We take a prevention approach to health issues and health policy Council Goal Indicators Council Role 2015-2016 Reviewed Action 5.11 Council will support the creation of healthy active liveable connected communities via parks and open space planning, transport planning and urban planning ‘Healthy by Design’ principles applied within Council's planning practices. Facilitator No specific actions identified for 2015/16 5.12 Council will support and encourage health promoting settings to reduce risk factors for preventable chronic disease via the Health Together Whittlesea federally funded program Reduced smoking Provider Advocate Provider Deliver social marketing campaign Facilitator Advocate Reducing harmful alcohol consumption Provider Facilitator Continue to support Health Champions Program Advocate Increased fruit and vegetable consumption Provider Progress achievement programs Increased physical activity Advocate 5.13 Council will develop healthy sporting environment programs based on the VicHealth Healthy Sporting Environment approach Number of codes/clubs engaged meeting criteria Facilitator No specific actions identified for 2015/16 5.14 Council will increase access and availability of healthy, affordable food including fresh fruit and vegetables in areas of identified need Access to fruit and vegetables across municipality Facilitator No specific actions identified for 2015/16 Facilitator Provider 33 Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action 5.15 Council will develop policy to support and encourage health promoting community settings to reduce risk factors for preventable chronic disease Reduced harmful alcohol consumption amongst young people Provider No specific actions identified for 2015/16 Location and density of alcohol outlets Facilitator Advocate Community support for smoking ban in outdoor public places We take a prevention approach to health issues and health policy 5.16 Council will work in partnership with community and service providers to reduce and minimise the negative social, economic and health impacts of gambling Monitor influence on local communities through Victorian Commission for gambling and liquor Regulation (VCGLR) electronic gaming machine expenditure data Facilitator 5.17 Older residents have access to a range of supports which improve their wellbeing and capacity to age positively Older residents have access to a range of supports which improve their wellbeing and capacity to age positively (as measured by indicators of health and wellbeing in HACC growth projects data analysis) Provider Advocate Council to advocate for policy and regulatory changes that reduces harm from gambling in community Implement the Responsible Gambling Strategy action plans in partnership with key stakeholders Develop the Positive Aging Strategy Facilitator Advocate 34 Future Direction 6: Living Sustainable Living sustainably in our community means managing the impacts of our environmental, economic, and social activities so that we remain healthy over the long term. Our natural environment is a resource for all to enjoy and we need to protect it for future generations. This means our carbon footprint, water, waste, energy use, flora (particularly the majestic River Red Gums) and our fauna need to be cared for. Strong population growth, strong housing demand, economic growth, climate change, alternative energies and transport all provide challenges for our environment, future planning and how we live. Our daily routines have changed; we plan for tomorrow and use innovation to become more sustainable. Everyone does their bit to help. Theme Environmental Sustainability Strategic Outcome We have environmental education and conservation programs We are an environmentally sustainable city Rural land is managed appropriately Municipal Public Health and Wellbeing goal A highlight* indicates an action that is included in the 2015/16 Budget as a Major Initiative. Strategic Objective Council Goal Indicators We have environmental education and conservation programs 6.1 Council will continue to develop and deliver community education and conservation programs Increase in participation rates at education and conservation events We are an environmentally sustainable City 6.2 Council will continue to work on strategies and plans that are shaping the City of Whittlesea to be environmentally sustainable Environmental Sustainability Strategy is used as a reference for other council planning practices Council Role Provider 2015-2016 Reviewed Action Continue to deliver a range of community education programs Secure permanent household chemical disposal facility at Wollert Landfill Facilitator 35 Strategic Objective We are an environmentally sustainable City Council Goal 6.2 Council will continue to work on strategies and plans that are shaping the City of Whittlesea to be environmentally sustainable 6.3 Council will implement the Green Wedge Management Plan 6.4 Implement actions detailed within Council's Environmental Sustainability Strategy (ESS) Rural land is managed appropriately 6.5 Council will continue to address the threats posed by urban stormwater runoff to the City’s waterways 6.6 Council will continue delivery of rural incentive programs including the rate rebate and environmental works program Indicators Council Role 2015-2016 Reviewed Action Review the Waste Management Strategy and Waste Collection Contracts* Community satisfaction with waste management Strategic land use planning factors in preservation of green wedge for flora and fauna Implementation plan details priority and timing of actions Community satisfaction with drainage and water management Increased participation in rural incentive programs % compliance with pest plant local law program Facilitator Provider Provider Provider Provider Facilitator Commence implementation of the Street Tree Master Plan Commence works for the Sustainable Climate Control project at the Civic Centre (HVAC upgrade) No specific actions identified for 2015/16 Implement Year 2 short term priorities in ESS Implement a program to deliver Green House Gas Emissions target Implement climate change adaptation plan as part of the IRVA program Implement a Biodiversity Offset Plan Implement actions from the Stormwater Management Plan Continue to implement sustainable land management rebate program 36 Future Direction 7: Good Corporate Governance Providing good governance means that the decision making processes for managing public resources are accessible, transparent and appropriate. Council must take into consideration principles of social justice and human rights in the delivery of democratic government. Theme Customer Centric Operations Growth and Change Strategic Outcome Council provides an efficient and effective service to residents Resource management Council is financially sustainable for the long term Council does not provide services that should be delivered by other tiers of government and agencies Council adopts best practice models of operation Services and infrastructure keep pace with population growth Continuous Improvement Municipal Public Health and Wellbeing goal A highlight* indicates an action that is included in the 2015/16 Budget as a Major Initiative. Strategic Objective Council Goal Indicators Council Role 2015-2016 Reviewed Action Council provides an efficient and effective service to residents 7.1 Council will develop and implement a Customer Service improvement program Customer Satisfaction Survey of 80% or above Provider Review phase one of the Customer Service Strategy and scope the second phase of the Strategy* Implement a process to manage and report customer requests from Councillors to Officers* 37 Services and infrastructure keep pace with population growth Council is financially sustainable for the long term 7.2 Council will develop and implement plan for population growth 7.3 Council will develop and implement a financial sustainability program Council's service delivery is provided to new areas of the municipality in line with new residential development Provider Balanced budget is achieved Provider Advocate Develop delivery strategies and plans for alternative service delivery models. Develop a plan for the delivery of the future accommodation needs of Council* Provider Facilitator Provider Advocate Review Asset Management Policy and implement 6 classes into the Asset Management System* Identify income opportunities to ease reliance on rate revenue Create transparency about the cost of delivery & range of council services Provider Presentation to Council of the 2015-2019 Financial Plans, incorporating the 4-15 year New Works Program* Provider Develop an action plan to manage corporate risks* Advocate Scope a project to review Major Class insurance portfolio Council does not provide services that should be delivered by other tiers of government and agencies 7.4 Council will continue to develop a partnership approach for working with agencies to ensure service delivery meets community need Number of services does not increase year on year Advocate No specific actions identified for 2015/16 Council adopts best 7.5 Council services embrace new All council strategies consider Provider Implement the IT Strategy* 38 practice models of operation technology 7.6 Council will build and maintain a competent workforce and leadership capability in order to deliver efficient and effective services to the community 7.7 Council will integrate planning for services to ensure alignment to community need benefits of new technology Provider Assess Business Intelligence System pilot outcomes and determine roll out Provider Implement stage one of the One Whittlesea Program* Provider Develop a Workforce Strategy Provider Implement the Leadership Development Program to address cultural competence Provider Implement the 2014-2017 Enterprise Agreement actions Provider Implementation of Human Resources Information System (HRIS) stage one modules* Provider Embed best value principles in Council operations Provider Develop the corporate Continuous Improvement Framework Learning & Development Strategy aligned to organisational need All new and/or reviewed plans and strategies are aligned to the Community Plan 39 Provider Implement Stage One of the Service Planning Project Provider Undertake review of business planning model 40 Strategic Resource Plan (SRP) 2015-2019 1. Introduction Council is required by the Local Government Act 1989 (Act), to prepare and approve a Council Plan within the period of 6 months after the general election or by the next 30 June, whichever is later. The Council Plan must include a Strategic Resource Plan (SRP) containing the matters specified in Section 126 of the Act. The Strategic Resource Plan is prepared in conjunction with the Council Plan to reflect the financial and non-financial resources required to achieve the strategic objectives included in the Council Plan. Developing council financial strategies is often a difficult process. Is sufficient revenue being generated to provide the services and level of service required by its community? Is the condition of existing assets providing an acceptable level of service to the community? What level of funding is required to upgrade existing assets or construct new assets? When should debt be used to fund capital projects? What is an acceptable rate and charge increase? Purpose of SRP Council is required to prepare a SRP under Section 126 of the Local Government Act (1989). The purpose of the Strategic Resource Plan is to: Establish a framework to manage the resources required to achieve the strategic objectives as expressed in the Council Plan; Provide an assessment of the resources required to achieve the strategic objectives of the Council Plan; Plan for the long-term financial sustainability of the Council; Establish a basis to measure Council’s adherence to the principles of the Strategic Resource Plan; and Assist Council to comply with sound financial management principles in accordance with the Act. A number of strategic challenges remain for Whittlesea Council including continuing to provide an appropriate range and level of services to a growing community, renewing existing assets, maintaining a sound financial position and addressing the need for capital expansion. This Strategic Resource Plan provides the basis of how Council will meet these challenges. SRP Objectives The SRP is intended to achieve the following objectives: Maintain the existing range and level of service provision and develop the capacity to grow and add new services; Maintain a strong cash position, ensuring Council remains financially sustainable in the long-term; 42 Achieve operating statement surpluses with the exclusion of all non-operational items such as gifted assets and capital income; Maintain debt levels at or below prudential guidelines; Continue to pursue recurrent grant funding and strategic capital funding aligned with Council Plan objectives ; and Ensure critical asset renewal is funded annually over the timeframe of the SRP. 43 2. Planning and Accountability Framework The Planning and Accountability Framework is found in part 6 of the Act and in the Local Government (Planning and Reporting) Regulations 2014 (the regulations). The legislation requires councils to prepare the following documents: a council plan within the period of six months after each general election or by 30 June, whichever is later a strategic resource plan for a period of at least four years and include this in the council plan a budget for each financial year an annual report in respect of each financial year. The following diagram shows the relationships between the key planning and reporting documents that make up the planning and accountability framework for local government. It also shows that there are opportunities for community and stakeholder input and feedback at each stage of the planning and reporting cycle. Figure 1. Planning and Accountability Framework The planning framework provides for the Council Plan strategies to be linked to Business Plan actions that are funded and resourced through the Annual Budget. The organisation then measures and monitors performance and reports to internal and external stakeholders as required. 44 3. Strategic Resource Plan (Overview) Statutory requirements “Section 125(1) of the Act requires councils to prepare a strategic resource plan and include this in the council plan.” Section 126 of the Act states that: the strategic resource plan is a plan of the resources required to achieve the council plan strategic objectives the strategic resource plan must include the financial statements describing the financial resources in respect of at least the next four financial years the strategic resource plan must include statements describing the non-financial resources including human resources in respect of at least the next four financial years the strategic resource plan must take into account services and initiatives contained in any plan adopted by council and if the council proposes to adopt a plan to provide services or take initiatives, the resources required must be consistent with the strategic resource plan council must review their strategic resource plan during the preparation of the council plan council must adopt the strategic resource plan not later than 30 June each year and a copy must be available for public inspection at the council office and internet website. In preparing the strategic resource plan, councils should comply with the principles of sound financial management as prescribed in the Act being to: prudently manage financial risks relating to debt, assets and liabilities provide reasonable stability in the level of rate burden consider the financial effects of council decisions on future generations provide full, accurate and timely disclosure of financial information. In addition to section 126 of the Act, part 2 of the regulations also prescribes further details in relation to the preparation of a strategic resource plan. These further details include: (a) a statement of human resources; (b) a summary of planned expenditure in relation to the human resources referred to in the statement of human resources, categorised according to the organisational structure of the Council and classified separately as— i. permanent full time; and ii. permanent part time; (c) a summary of the planned number of full time equivalent Council staff referred to in the statement of human resources, categorised according to the organisational structure of the Council and classified separately as— i. permanent full time; and ii. permanent part time. 45 The Strategic Resource Plan is a rolling plan that summarises the medium-term financial projections of Council. Medium-term planning is important for ensuring that Council remains financially sustainable into the future. The Strategic Resource Plan also shows how the annual budget for the forthcoming year fits within the medium-term planning framework and demonstrates the linkage with the Council Plan strategic objectives and desired outcomes. The annual budget should reflect year one of the Strategic Resource Plan and should take into account the activities and initiatives which contribute to achieving the strategic objectives specified in the Council Plan. In developing the Strategic Resource Plan, the Council will be able to determine its ability to meet its current and future obligations, as they fall due. The organisation then measures and monitors performance and reports to internal and external stakeholders as required. Throughout this plan Council has identified objectives and strategies which the Council is committed to achieving and which will be monitored to ensure the success of the plan. The following table highlights the key objectives and/or strategies of this SRP. Financial Sustainability Financial objectives Seek to achieve and maintain an annual underlying operating surplus over the life of this Strategic Resource Plan. Compliance with principles of Sound Financial Management as contained in the Act Long Term Borrowings Adherence to prudential guidelines Future borrowings to be for capital projects that provide intergenerational equity Rating Information Valuation base is Net Annual Value (NAV) Farm Rate discount Sustainable Land Management Rebate Melbourne Wholesale Markets Rebate Asset management Balance service levels with the expectations of communities and stakeholders Capital works Budget for a net capital expenditure program of approximately $22.0 million per annum for 2015/16 increasing by $2.0 million per annum over the term of this SRP Service delivery Maintain existing service levels Achieve an underlying breakeven operating result within the short term 46 4. Objectives Financial Sustainability The key objective, which underlines the development of the SRP, is financial sustainability in the medium to long term, while still achieving Council’s strategic objectives as specified in the Council Plan. The key financial objectives, which underpin the SRP, are: Maintain existing service levels Achieve a breakeven operating result in the short term Achieve a net capital expenditure program of approximately $22.0 million per annum for 2015/16 increasing by $2.0 million per annum over the term of this SRP Achieve a balanced budget on a cash basis. In preparing the SRP, Council has also been mindful of the need to comply with the following Principles of Sound Financial Management as contained in the Act: Prudently manage financial risks relating to debt, assets and liabilities Provide reasonable stability in the level of rate burden Consider the financial effects of Council decisions on future generations Provide full, accurate and timely disclosure of financial information The Victoria Auditor General’s Office (VAGO) presents an annual report to parliament on Local Government based on their year end financial audits of the local government sector comprising 79 councils. This report also includes an assessment of the financial sustainability of councils. VAGO’s overall assessment of Council’s financial sustainability was low risk based on their financial audit for the year ending 30 June 2014. When assessing the financial sustainability of Councils VAGO takes into consideration the following financial indicators: Underlying result - councils generate enough revenue to cover operating costs (including the cost of replacing assets reflected in depreciation expense) Liquidity - councils have sufficient working capital to meet short-term commitments Indebtedness - councils are not overly reliant on debt to fund capital programs Self-financing - councils generate sufficient operating cash flows to invest in asset renewal and repay any debt that may have been incurred in the past Investment Gap - councils have been replacing assets at a rate consistent with their consumption Renewal Gap - councils have been maintaining existing assets at a consistent rate. 47 The following table summarises the key financial results for the four years 2015/16 to 2018/19. Indicator 2015/16 $’000 2016/17 $’000 Surplus/(deficit) for the year 95,251 98,577 Adjusted underlying result (1,316) (1,316) 294 106,149 98,034 Cash and investments Cash flow from operations Capital works expenditure Key to Forecast Trend: 43,716 50,909 45,074 55,668 2017/18 $’000 2018/19 $’000 102,737 103,348 2,117 4,778 93,161 93,161 89,850 47,105 47,105 47,463 65,020 65,020 48,644 Trend +/o/+ + o + + + Forecasts improvement in Council’s financial performance/financial position indicator o Forecasts that Council’s financial performance/financial position indicator will be steady - Forecasts deterioration in Council’s financial performance/financial position indicator The following graph shows the general financial indicators over the four year period The key outcomes of the SRP are as follows: Financial sustainability – Cash and cash equivalents combined with financial assets (investments) is forecast to decrease over the four year period from $106.10 million (at the beginning of 2015/16) to $89.85 million (at the end of 2018/19), which indicates prudent financial management whilst maintaining a strong commitment to Council’s capital works program by using a relatively minor portion of Council’s cash reserves. 48 Rating levels – A modest rate increase of 3.5% has been forecast for 2015/16 Budget. As a result of the Andrews’ State Labour Governments stated intention of introducing rate capping (at CPI) for all Victorian Councils, the following 3 years forecasts have been predicated on a rate rise of 2.5% subject to a review being undertaken by the Essential Services Commission to determine an appropriate Local Government Cost Index. Service delivery strategy – Service levels have been maintained throughout the four year period. Despite this, operating surpluses are forecast in all years of the SRP as a result of the receipt of significant gifted assets and developer contributions. Significant development activity within the municipality and capital grant revenue received to fund the annual capital works program is expected to continue. However, excluding the effects of capital items such as capital grants and contributions, the adjusted underlying result shows a deficit in 2015/16 with a return to surplus for 2016/17, 2017/18 and 2018/19. The adjusted underlying result is a measure of financial sustainability and is an important measure as once-off capital items can often mask the operating result. Borrowing strategy – Borrowings are forecast to increase from $32.61 million (at 30 June 2015) to $70.67 million (at 30 June 2019) in order to fund significant capital projects, and represents a movement in the prudential ratio from 27.1% (at 30 June 2015) to 46.5% (at 30 June 2019). Infrastructure strategy – Capital expenditure over the four year period will total $220.2 million at an average of $55.05 million. 49 Financial performance indicators The following table highlights Council’s current and projected performance across a range of key financial performance indicators. These indicators provide a useful analysis of Council’s financial position and performance and should be used in the context of the organisation’s objectives. Measure Budget Notes Indicator 2015/16 Strategic Resource Plan Trend Projections +/o/- 2016/17 2017/18 2018/19 Operating Position Adjusted Underlying Result Adjusted Underlying Surplus (Deficit)/ Adjusted underlying revenue 1 (.07%) 0.3% 1.2% 2.4% + 2 297.9% 260.9% 234.9% 201.9% - 189.8% 148.3% 121.1% 103.8% 27.2% 33.0% 44.5% 46.5% - 3.5% 3.7% 4.5% 5.3% - 23.2% 28.9% 39.3% 40.3% - Liquidity Working Capital Current Assets/ Current Liabilities Unrestricted Cash Unrestricted cash / - Current liabilities Obligations Loans and Borrowings Loans and Borrowings Indebtedness Asset Renewal Interest bearing loans and borrowings/rate revenue 3 Interest and principal repayments/rate revenue Non-current liabilities/ Own source revenue Asset renewal expenditure / depreciation 4 63.5% 51.8% 44.5% 44.5% - Rates concentration Rate revenue/adjusted underlying revenue 5 69.9% 72.0% 73.5% 73.8% + Rates effort Rate revenue/property values (CIV) 0.3% 0.4% 0.4% 0.4% + Stability Efficiency Expenditure level Total expenditure/ + 50 Measure Budget Notes Indicator number of assessments Revenue level Workforce turnover Residential rate revenue / number of residential assessments Number of resignations and terminations / Strategic Resource Plan Trend Projections +/o/- 2015/16 $2,333 2016/17 $2,348 2017/18 $2,385 2018/19 $2,440 $1,312 $1,371 $1,433 $1,497 + 8.4% 8.3% 8.3% 8.2% + average number of staff Key to Forecast Trend: + Forecasts improvement in Council’s financial performance/financial position indicator o Forecasts that Council’s financial performance/financial position indicator will be steady - Forecasts deterioration in Council’s financial performance/financial position indicator Notes to indicators 1. Adjusted underlying result – The adjusted underlying operating result excludes the impact of non-recurrent capital grants, non-monetary asset contributions and other contributions to fund capital expenditure. It is an indicator of the sustainable operating result required to enable Council to continue to provide core services and meet its objectives. Improvement in financial performance is expected over the period. 2. Working Capital – The proportion of current liabilities represented by current assets. Working capital is forecast to increase marginally in 2016/17 year but decrease over the following years due to increased borrowings which will fund some large capital projects. 3. Debt compared to rates – Trend indicates Council’s increasing use of debt to fund significant capital projects. 4. Asset renewal – This percentage indicates the extent of Council’s renewals against its depreciation charge (an indication of the decline in value of its existing capital assets). A percentage greater than 100 indicates Council is maintaining its existing assets, while a percentage less than 100 means its assets are deteriorating faster than they are being renewed and future capital expenditure will be required to renew assets. 5. Rates concentration – Reflects the extent of reliance on rate revenues to fund all of Council’s on-going services. Trend indicates Council will become increasingly reliant on rate revenue compared to all other revenue sources despite efforts to identify other income streams. 51 Non-financial resources In addition to the financial resources to be utilised over the planning period, Council will also utilise non-financial resources, in particular human resources. A summary of Council’s anticipated human resources requirements for the 2015/16 to 2018/19 years is shown below. A detailed statement of Human Resources is included in the SRP Model (pages 28 and 29). Indicator 2015/16 2016/17 2017/18 2018/19 $’000 $’000 $’000 $’000 81,510 84,521 89,390 94,624 0 0 0 0 81,510 84,521 89,390 94,624 792.8 794.4 792.7 801.5 Employee costs ($’000) - Operating - Capital Total Employee numbers (EFT) 52 5. Other Strategies Long Term Borrowings In developing this Strategic Resource Plan, borrowings was identified as an important funding source for capital works programs. In the past, Council has borrowed moderately to finance large infrastructure projects and since then has been in a phase of debt reduction. This has resulted in a reduction in debt servicing costs, but has meant that cash and investment reserves have been used as an alternate funding source to maintain robust capital works programs. With Council discretionary reserves now forecast to be $37.6 million at 30 June 2015 and a significant capital works program to be completed over the coming years, it has been necessary to reconsider the issue of borrowings. Council regularly monitors its debt levels against prudential guidelines and has instituted a program of debt reduction over the past few years to enable Council to invest in intergenerational capital projects which will be required in the near term. For the 2015/16 year, Council has decided to take out new borrowings to fund the capital works program and therefore, after making loan repayments of $2.17 million, will increase its total borrowings to $34.74 million as at 30 June 2016. In future years, borrowings will be required to fund further infrastructure initiatives. The following table sets out future proposed borrowings, based on a) the forecast financial position of Council as at 30 June 2015 and b) existing capital works projections. Year New Borrowings Principal Interest Balance $’000 Paid Paid 30 June $’000 $’000 $’000 2014/15 2,902 2,033 2,252 32,618 2015/16 4,300 2,173 2,313 34,745 2016/17 12,763 2,430 2,608 45,077 2017/18 22,125 2,982 3,550 64,221 2018/19 10,159 3,712 4,397 70,668 Council’s approach to borrowings is to ensure that: Total borrowings remain below the State Government prudential guideline of 60% of total rate revenue Debt commitment costs (principal and interest repayments for each financial year) remain below the prudential guideline of 10 cents in every rate dollar Based on compliance with the prudential financial guidelines the purpose of borrowing will be to fund capital projects that provide intergenerational equity. Borrowings may also be required in the future as a means of securing a fixed rate of payment for other liabilities Council may face, for example, should there be a future requirement to contribute additional amounts to the Local Government defined benefit superannuation fund. 53 It is Council’s intention to participate in the MAV (Municipal Association of Victoria) Loan Funding Vehicle which is expected to provide interest savings of approximately 1% dependant on the loan terms. All future borrowings will be considered carefully in accordance with principles of sound financial management and the ability of Council to meet the relevant prudential requirements for borrowing set out by State Government. The State Government prudential requirements for borrowing are set out below, together with Council’s budgeted position at 30 June 2016: Prudential ratio Calculation Rationale State Govt Target Whittlesea 2015/2016 Budget Comparison to State Government Target Liquidity (working capital) Current Assets : Current Liabilities Reflects ability to repay current commitments from cash or near cash assets > 1.1 : 1 3.2 : 1 Greater than State Government target Debt commitment Total loans as a percentage of rate revenue Reflects total loan levels relative to Council rates <60% 27.2% Below State Government target Debt servicing Total interest costs as a percentage of total revenue Reflects the proportion of total revenue that is used to service loan interest <5% 0.8% Below State Government target Debt Commitment Costs Total interest plus principal as a percentage of total revenue Reflects the proportion of total revenue that is used to service loan interest and principal repayments <10% 1.6% Below State Government target 54 As can be seen in the previous table, Whittlesea’s position with respect to borrowings is well within the State Government prudential targets in the 2015/16 Budget year. The table below shows information on borrowings that is specifically required by the Regulations Total amount borrowed as at 30 June of the prior year Total amount to be borrowed Total amount projected to be redeemed Total amount proposed to be borrowed as at 30 June 2014/15 $ 31,749,748 2,901,500 (2,033,219) 32,618,029 2015/16 $ 32,618,029 4,300,000 (2,173,312) 34,744,717 55 Rating Information In developing this SRP, rates and charges were identified as an important source of revenue, accounting for approximately 66% of the total revenue (excluding non-cash contributions) received by Council annually. Planning for future rate increases has therefore been an important component of the Strategic Resource Planning process. The level of required rates and charges has been considered in this context, with reference to Council’s other sources of income and the planned expenditure on services and works to be undertaken for the Whittlesea community. However, it has also been necessary to balance the importance of rate revenue as a funding source with community sensitivity to increases, particularly recent changes in property valuations and subsequently rates for some properties in the municipality. The following table shows a comparison of the last five years and the average rates per capita for the 2014/15 year. Year Whittlesea City Council 2010/11 4.00% 2011/12 4.98% 2012/13 5.00% 2013/14 4.75% 2014/15 3.95% Average increase 4.54% Average rate per capita 2014/15 $630 It is predicted that the 2015/16 operating position will be significantly influenced by increases in labour resources and reductions in government funding in real terms. It will therefore be necessary to achieve future revenue growth while containing costs in order to achieve an underlying breakeven operating position by 2016/17 as set out in the SRP. In order to achieve these objectives while maintaining service levels and a strong capital expenditure program, the general rate will increase by a modest 3.50%. This will raise total rate and charges for 2015/16 of $127.8 million, including $2.6 million budgeted for supplementary rates. The determination of Fees and Charges is also an important component of Council’s Annual Budget. Council will continue a rolling review of fees and charges in an effort to ensure that price settings are appropriate and contribute an equitable share of income to the Budget. The following table sets out future proposed increases in rates and charges and the total rates to be raised, based on the forecast financial position of Council as at 30 June 2015. Due to the uncertainty surrounding rate capping at this time, Council has based its future forecasts on the percentage assumed to be CPI for the next 4 years. 56 Year General Rate Increase Farm Rate Increase Total Rates Raised % % $’000 2014/15 3.95% 3.95% 120,646,350 2015/16 (indicative) 3.5% 3.5% 127,560,047 2016/17 (indicative) 2.5% 2.5% 134,980,780 2017/18 (indicative) 2.5% 2.5% 142,530,150 2018/19 (indicative) 2.5% 2.5% 150,129,020 Council uses the Net Annual Value (NAV) method of valuation and calculates a rate in the dollar on property valuations to determine the total rate revenue required from the annual budget process. The existing rating structure comprises two rating categories (general rate and farm rate). These rates are structured in accordance with the requirements of section 155 of the Local Government Act 1989. The City of Whittlesea has offered a Farm Rate since at least the early 1980s to assist those with genuine farming properties within the municipality. In 2013/14 the discount was increased by 5% to 15% on the general rate and currently is provided to and assists 197 properties on the farm rate. The discount will remain at 15% for 2015/16. Council also offers a rate rebate for sustainable land management and this will continue in 2015/16. Eligible rural landowners may be provided with a rate rebate to encourage responsible land management, through Council’s Sustainable Land Management Rebate Scheme. The Sustainable Land Management Rebate is to be granted to: Assist in the proper and sustainable development of the municipal district Support and encourage the application of sustainable land management practices Preserve places within the municipal district which are of environmental interest Preserve, restore and maintain places of environmental importance and value within the municipal district Improve the productive capacity of rural land; and Promote the objectives described in the Sustainable Land Management Rebate Scheme Application Guidelines. Melbourne Wholesale Market Rebate Council will grant a rebate to each owner (or, where applicable, occupier) of land comprising any part of the Melbourne Wholesale Markets. The rebate will become operative upon the commencement of trading at the Markets, and be in an amount equal to the rates which would otherwise have been payable in respect of the land; and The rebate is to be granted to assist the proper development of the municipal district. Under the NAV rating system there is no opportunity for differential rates other than a Farm Rate and Urban Farm Rate. 57 Council has a formal Rating Strategy that contains expanded information on Council's rating structure and the reasons behind its choices in applying the rating mechanisms it has used. The following table summarises the rates to be determined for the 2015/16 year. How applied 2014/15 2015/16 Change Residential Rates Cents in $ of NAV .06397101 .06621000 3.5% Farm Rates Cents in $ of NAV .05437536 .05627850 3.5% Asset Management Asset Management is the combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner. It includes the management of the whole life cycle (design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and decommissioning/disposal) of physical and infrastructure assets. Providing and maintaining infrastructure asset for service delivery is a function of Council under the Local Government Act 1989. Council’s Asset Management Policy is currently being updated. The revised policy, together with soon to be developed service plans, endeavour to balance the service levels with the expectations of communities and stakeholders, having due regard to available resources and affordability. Council is also developing nine Asset Management Plans, and investing in an Asset Management System to assist with the planning for the maintenance and renewal needs of infrastructure assets. As a growth municipality with a significant number of new assets constructed each year, it is critically important that future maintenance and renewal of these assets is planned for now, to ensure future generations have access to the same service levels currently delivered. A key objective of the Budget is to allocate funding for the maintenance and renewal of existing infrastructure assets used for providing services. In developing the Budget, the following guiding principles were considered – (a) give priority to the timely interventions which optimise the useful lives of assets so that expensive repairs and premature renewal can be avoided; and (b) comply with regulatory obligations. The process includes: identification of capital projects that would maintain or renew Council’s existing assets at desired condition levels; and prioritisation of capital projects. 58 Capital Works Council also recognises the need to provide significant funding sources for additional assets needed to provide for increased service demands. Asset Service Plans will inform this, and feed into identified capital projects which are then prioritised in a New Works Program for the period of the SRP. In the development of the New Works Program, Council assesses other options before committing to the development of new assets. In addition to the guiding principles stated above in this section, the following principles are also considered – (a) take a strategic approach that forecasts the service delivery needs and the capacity to meet them in a short, medium and long-term basis, and (b) provide and maintain assets fit for service delivery. The following table summarises Council's forward outlook on capital expenditure including funding sources for the next four years. Summary of funding sources Year Total Capital Program Grants Contributions Council Cash Borrowings $’000 $’000 $’000 $’000 $’000 2014/15 46,649 5,986 0 37,761 2,902 2015/16 50,909 3,035 1,940 41,635 4,300 2016/17 55,668 1,014 9,531 32,361 12,763 2017/18 65,020 2,964 2,964 26,188 22,125 2018/19 48,644 5,361 5,361 28,372 10,159 In addition to using cash generated from its annual operations, borrowings and external contributions such as government grants, Council has cash or investment reserves that are also used to fund a variety of capital projects. These reserves are either ‘statutory’ or ’discretionary’ cash reserves. Statutory reserves relate to cash and investments held by Council that must be expended on a specific purpose as directed by legislation or a funding body, and include contributions to community facilities, drainage and recreational open space. Discretionary cash reserves relate to those cash and investment balances that have been set aside by Council and can be used at Council’s discretion, even though they may be earmarked for a specific purpose. Service delivery The key objectives in this SRP which directly impact the future service delivery strategy are to maintain existing service levels and to achieve an underlying breakeven operating result within the short term. With these key objectives as a basis, a number of internal and external influences have been identified through discussions with management which will have a significant impact on the scope and level of services to be provided over the next four years. 59 The service delivery outcomes measured in financial terms are shown in the following table. Year Surplus (Deficit) for the year $’000 Adjusted Underlying Surplus (Deficit) Net Service (Cost) $’000 $000 2014/15 91,505 (4,069) (100,951) 2015/16 95,251 (1,316) (107,886) 2016/17 98,577 294 (111,604) 2017/18 104,165 2,117 (117,295) 2018/19 104,790 4,778 (123,228) Service levels have been maintained throughout the four year period with operating surpluses forecast in all years from 2015/16 through to 2018/19 as a result of significant cash and non-cash contributions from developers and capital grant revenue being received to fund the annual capital works program. The adjusted underlying operating result excludes the impact of non-recurrent capital grants, nonmonetary asset contributions and other contributions to fund capital expenditure. The net cost of the services (i.e. the total cost less revenue earned) provided to the community increases from $107.8 million to $123.2 million over the four year period. A more detailed analysis of the net cost of services attributable to each of Council’s strategic objectives can be seen in the table below: Strategic Objective 2015/16 2016/17 2017/18 2018/19 $’000 $’000 $’000 $’000 Good Governance 17,212 17,726 18,091 19,105 Living sustainably 35,372 36,602 38,284 40,074 9,868 11,089 11,894 12,710 19,417 19,872 21,281 22,665 5,498 5,393 5,912 5,633 12,532 12,748 13,356 14,145 7,987 8,175 8,477 8,896 107,886 111,604 117,295 123,228 Health and wellbeing Places and spaces to connect people Growing our Economy Accessibility in, out and around our City Inclusive and Engaged Community 60 6. Key Assumptions A range of assumptions has been used in the development of this SRP and applied to both revenue and expenditure. The general operating assumptions are set out in the following table. Indicator 2015/16 2016/17 2017/18 2018/19 % % % % Consumer Price Index 2.5 2.5 2.5 2.5 Rate increases 3.5 2.5 2.5 2.5 Property growth 4.4 4.2 4.1 3.8 Wages growth 3.4 3.4 3.4 3.4 Government funding 2.0 2.0 2.0 2.0 Statutory fees 2.5 2.5 2.5 2.5 Investment return 3.5 3.5 4.0 4.0 Consumer price index (CPI) In developing the SRP, CPI has been set at 2.5% p.a. over the four year period and has been applied to non-discretionary expenditure (e.g. contract services). An increment of “half-CPI” has been applied to non-contract/discretionary services such as postage, telephone etc. as many of these items do not increase annually or in-line with CPI. Revenue items other than those specifically identified in the table above have also been incremented annually by CPI. Rate increases Increases of 3.5% in 2015/16 followed by increases each year of 2.5% have been included in each of the future years of the SRP. The 2.5% represents CPI as currently forecast by various financial institutions. Council has chosen to budget this way as a result of the current State Government’s stated aim of capping rates at no more than the CPI rate. These figures may change dependent on economic factors, and/or the outcome of the current research. Property growth The City of Whittlesea is one of the fastest growth municipalities in Australia and this growth influences service delivery, a number of revenue items such as subdivision related services and property information searches, as well as the demand for new assets. Wages growth Council struck a new Enterprise Agreement (EA) during the 2014/15 financial year whereby the annual increase is 3.4% or $40 p.w. whichever is the greater. The EA finishes in June 2017. 61 Government funding Operating grants and subsidies received from State and Federal governments for the purposes of funding the delivery of services to ratepayers have been incremented (in general) by 2%. The Federal Government froze the total allocation of Federal Assistance Grants in 2014/15 for a period of 3 years. Due to Whittlesea’s strong population growth it is possible that we will receive a slightly higher allocation in 2015/16 and 2016/17 than in prior years. Statutory fees Statutory fees have been incremented by CPI across the four years of the SRP. Investment return In the current economic climate, investment rates are one of the most “uncertain” predictions. Economic forecasts range from 3% to 5% across the period of the SRP. For 2015/16 and 2016/17 investment returns have been set at 3.5% increasing to 4.0% in 2017/18 and 2018/19. Specific assumptions in the SRP During development of the SRP, Council officers were consulted and contributed information about future trends including any significant issues that might impact on the net cost of delivering services over the period of the SRP. Any significant changes that were identified as being outside the parameters of the general assumptions used for expenditures and revenues in the SRP were also included in the model. Issues identified included the expiration and retendering of various contracts (e.g Parks & Open Space), and decisions that need to be made when grant revenue ceases but the program/s the grant funded has become popular with the community and Council feels an obligation to continue it. Due to significant growth within the municipality the budgeted cost for services such as Waste Management, Parks & Open Space maintenance, Maternal and Child Health Services and School Crossing supervision have been incremented at annual rates between 4% and 8.7%. Some expenditure items (e.g. utilities and insurance) have been incremented at 10% p.a. on the basis of historical trends. 62 7. Strategic Resource Plan (Model) This section includes the following information covering the period of this SRP: Comprehensive income statement Balance sheet Statement of changes in equity Statement of cash flows Statement of capital works Statement of human resources Other information: Summary of planned capital works expenditure Summary of planned human resources expenditure 63 Comprehensive Income Statement For the four years ended 30 June 2019. 2016 $’000 2017 $’000 2018 $’000 2019 $’000 Income Rates and charges 127,751 136,602 144,192 151,904 User fees and fines 18,758 19,549 20,162 20,654 Contributions - cash 1,706 1,732 1,360 1,921 Contributions - cash (developer contributions) 9,324 9,341 9,568 9,159 Contributions - Non-monetary assets 86,000 91,075 96,154 97,000 Grants - Operating (recurrent) 25,511 25,332 25,451 26,395 104 100 100 101 2,192 913 913 913 Grants - Capital (non-recurrent) 843 101 2,051 3,839 Net gain (loss) on disposal of property, infrastructure, plant and equipment 166 217 230 169 6,534 5,163 5,244 5,156 - - - - 278,889 290,125 305,425 317,211 Employee costs 81,510 84,521 89,390 94,624 Materials and services 59,739 61,648 62,784 65,193 599 605 611 617 24,827 26,069 27,372 28,000 2,313 2,608 3,550 4,397 Other expenses 14,650 16,097 17,553 19,590 Total expenses 183,638 191,548 201,260 212,421 Surplus (deficit) 95,251 98,577 104,165 104,790 Grants - Operating (non-recurrent) Grants - Capital (recurrent) Other income Share of net profits/(losses) of associates and joint ventures accounted for by the equity method Total income Expenses Bad and doubtful debts Depreciation and amortisation Finance costs 64 Share of other comprehensive income of associates and joint ventures Total comprehensive result - - - - 95,251 98,577 104,165 104,790 65 Balance Sheet For the four years ended 30 June 2019. 2016 $’000 2017 $’000 2018 $’000 2019 $’000 Assets Current assets Cash and cash equivalents 47,767 44,116 42,552 41,711 Financial assets 58,382 53,919 52,008 50,981 8,861 9,358 9,763 10,137 124 128 132 136 1,198 1,172 1,155 1,181 116,332 108,693 105,610 104,146 22 22 22 22 2,109 2,109 2,109 2,109 Infrastructure, property, plant and equipment 2,870,160 2,990,760 3,121,199 3,238,390 Total non-current assets 2,872,291 2,992,891 3,123,330 3,240,521 Total assets 2,988,623 3,101,584 3,228,940 3,344,667 Trade and other payables 12,546 12,946 13,185 13,691 Trust funds and deposits 5,657 5,657 5,657 5,657 18,420 20,069 21,791 23,590 2,430 2,982 3,712 7,216 39,053 41,654 44,345 50,154 5,800 7,802 9,892 12,077 Trade and other receivables Inventories Other assets Total current assets Non-current assets Other financial assets Investments in associates Current liabilities Provisions Interest bearing loans and borrowings Total current liabilities Non-current liabilities Provisions 66 Interest bearing loans and borrowings 32,315 42,096 60,509 63,452 Total non-current liabilities 38,115 49,898 70,401 75,529 Total liabilities 77,168 91,552 114,746 125,683 2,911,455 3,010,032 3,114,194 3,218,984 2,238,916 2,334,357 2,437,602 2,533,136 672,539 675,675 676,593 685,848 2,911,455 3,010,032 3,114,195 3,218,984 Net assets Equity Accumulated surplus Reserves Total equity 67 Statement of Changes in Equity For the four years ended 30 June 2019. Total $’000 Accumulated Surplus Asset Revaluation Reserve Other Reserves $’000 $’000 $’000 2016 Balance at beginning of the financial year 2,816,205 2,139,984 95,251 95,251 587,130 89,091 Adjustment on change in accounting policy Comprehensive result Net asset revaluation increment(decrement) Impairment losses on revalued assets Reversal of impairment losses on revalued assets Transfer to reserves Transfer from reserves Balance at end of the financial year (17,228) 17,227 20,909 (20,909) 2,911,455 2,238,916 587,130 85,409 2,911,455 2,238,916 587,130 85,409 98,577 98,577 2017 Balance at beginning of the financial year Adjustment on change in accounting policy Comprehensive result Net asset revaluation increment(decrement) Impairment losses on revalued assets Reversal of impairment losses on revalued assets Transfer to reserves Transfer from reserves Balance at end of the financial year (17,312) 17,312 14,176 (14,176) 3,010,032 2,334,357 587,130 88,545 3,010,032 2,334,357 587,130 88,545 104,165 104,165 2018 Balance at beginning of the financial year Adjustment on change in accounting policy Comprehensive result 68 Net asset revaluation increment(decrement) Impairment losses on revalued assets Reversal of impairment losses on revalued assets Transfer to reserves Transfer from reserves Balance at end of the financial year (17,707) 17,705 16,787 (16,787) 3,114,195 2,437,602 587,130 89,463 3,114,195 2,437,602 587,130 89,463 104,790 104,790 2019 Balance at beginning of the financial year Adjustment on change in accounting policy Comprehensive result Net asset revaluation increment(decrement) Impairment losses on revalued assets Reversal of impairment losses on revalued assets Transfer to reserves Transfer from reserves Balance at end of the financial year 3,218,984 (17,471) 17,471 8,216 (8,216) 2,533,136 587,130 98,718 The above statement of changes in equity should be read in conjunction with the accompanying other information. 69 Statement of Cash Flows For the four years ended 30 June 2019. 2016 2017 2018 2019 Inflows/ Inflows/ Inflows/ Inflows/ (Outflows) (Outflows)$ (Outflows)$ (Outflows)$ $’000 ’000 ’000 ’000 Cash flows from operating activities Cash flows from operating activities Rates 127,529 136,336 143,964 151,673 18,728 19,311 19,978 20,507 Developer contributions 9,324 9,341 9,568 9,159 Grants (inclusive of GST) 31,515 29,090 31,366 34,372 Other receipts and charges (inclusive of GST) 4,994 3,471 3,114 3,553 Interest received 3,738 3,765 3,792 3,820 Net GST refund 8,535 10,372 11,079 9,844 Payments to employees (78,046) (80,870) (85,578) (90,640) Payments to suppliers (inclusive of GST) (82,601) (85,742) (88,778) (93,382) 43,716 45,074 48,505 48,906 688 901 956 702 (48,479) (61,814) (68,527) (53,527) 2,344 4,463 1,910 1,028 (45,447) (56,450) (65,660) (51,797) Repayment of borrowings (2,173) (2,430) (2,982) (3,712) Finance costs (2,313) (2,608) (3,550) (4,397) Proceeds from borrowings 4,300 12,763 22,125 10,159 Net cash provided by (used in) financing activities (186) 7,725 15,593 2,050 Net increase (decrease) in cash and cash equivalents (1,917) (3,651) (1,563) (841) Cash and cash equivalents at the beginning of the year 49,684 47,767 44,116 42,552 Cash and cash equivalents at the end of the year 47,767 44,116 42,552 41,711 User fees and fines Net cash provided by (used in) operating activities Cash flows from investing activities Proceeds from disposal of non-current assets Payments for infrastructure, property, plant and equipment (inclusive of GST) Redemptions/(Payments) for investments (maturing later than 90 days) Net cash provided by (used in) investing activities Cash flows from financing activities The above cash flow should be read in conjunction with the accompanying other information. 70 Statement of Capital Works For the four years ended 30 June 2019. 2016 $’000 2017 $’000 2018 $’000 2019 $’000 Property Land - 280 - - Land improvements - - - - Total Land - 280 - - 7,450 21,045 11,970 - - Buildings Heritage buildings Building Improvements Leasehold Improvements 12,912 8,624 - 9,690 - 2,530 830 - - Total Buildings 21,536 17,140 23,575 12,800 Total Property 21,536 17,420 23,575 12,800 - - Plant and Equipment Heritage plant & equipment - - Plant, machinery & equipment 1,398 1,861 2,044 1,498 Fixtures, fittings and furniture 80 80 80 80 1,207 606 548 411 - - - Computers and telecommunications Library Books Total Plant and Equipment 2,685 2,547 2,672 1,989 12,600 14,300 16,336 14,004 - - Infrastructure Roads Bridges Footpaths & cycleways Drainage Recreational, leisure & community facilities Waste management Parks, open space and streetscapes Off street car parks - - 2,670 1,542 2,139 3,439 200 750 300 1,100 7,741 14,717 15,571 10,059 - - 1,988 50 3,192 - 2,890 - 3,114 - 71 Other infrastructure 1,439 1,200 1,537 2,139 Total Infrastructure 26,688 35,701 38,773 33,855 Total capital works expenditure 50,909 55,668 65,020 48,644 New assets 15,200 22,773 25,364 21,029 Asset renewal 15,756 13,503 12,188 7,458 Upgrade/expansion 17,213 16,203 24,036 16,304 Non Infrastructure 2,740 3,189 3,432 3,853 Total capital works 50,909 55,668 65,020 48,644 Represented by: The above statement of capital works should be read in conjunction with the accompanying other information. 72 Statement of Human Resources For the four years ended 30 June 2019. 2016 $’000 2017 $’000 2018 $’000 2019 $’000 81,510 84,521 89,390 94,624 Employee costs - capital - - - - Total staff expenditure 81,510 84,521 89,390 94,624 EFT EFT EFT EFT Employees 792.8 794.4 792.7 801.5 Total staff numbers 792.8 794.4 792.7 801.5 Staff expenditure Employee costs - operating Staff numbers The above statement of human resources should be read in conjunction with the other information. 73 Asset Expenditure Types Funding Sources Total New Renew al Expansi on Upgra de Non Infrastruct ure $'000 $'000 $'000 $'000 $'000 $'000 Grants Contrib' ns Counci l Cash Borrowing s $'000 $'000 $'000 $'000 Property Land 0 0 0 0 0 0 0 0 0 0 Land Improvements 0 0 0 0 0 0 0 0 0 0 Total Land 0 0 0 0 0 0 0 0 0 0 11,112 7,332 3,630 0 100 50 0 250 10,862 0 0 0 0 0 0 0 0 0 0 0 10,424 0 2,854 0 7,320 250 0 0 6,724 3,700 0 0 0 0 0 0 0 0 0 0 Total Buildings 21,536 7,332 6,484 0 7,420 300 0 250 17,586 3,700 Total Property 21,536 7,332 6,484 0 7,420 300 0 250 17,586 3,700 0 0 0 0 0 0 0 0 0 0 1398 1,398 0 0 0 0 0 0 1,398 0 80 80 0 0 0 0 0 0 80 0 1207 69 330 0 203 605 0 0 1,207 0 0 0 0 0 0 0 0 0 0 0 2,685 1,547 330 0 203 605 0 0 2,685 0 Buildings Heritage Buildings Building Improvements Leasehold Improvements Plant and Equipment Heritage Plant and Equipment Plant, Machinery and Equipment Fixtures, Fittings and Furniture Computers and Telecommunications Library Books Total Plant & Equipment Other information for the four years ended 30 June 2019 1. Summary of planned capital works expenditure 2016 Infrastructure Roads 12,600 3,603 4,955 1,477 2,490 75 2,892 1,650 8,058 0 0 0 0 0 0 0 0 0 0 0 2,670 798 830 215 178 650 0 0 2,670 0 Drainage 200 50 100 50 0 0 0 0 200 0 Recreational, leisure and community facilities 7,741 1,750 2,341 0 3,550 100 0 40 7,101 600 0 0 0 0 0 0 0 0 0 0 1,988 0 523 0 695 770 0 0 1,988 0 0 0 0 0 0 0 0 0 0 0 50 0 0 0 50 0 0 0 50 0 Other infrastructure 1,439 108 193 0 898 240 143 0 1,296 0 Total Infrastructure 26,689 6,309 8,942 1,742 7,860 1,835 3,035 1,690 21,363 600 Total capital works expenditure 50,910 15,188 15,757 1,742 15,483 2,740 3,035 1,940 41,635 4,300 Bridges Footpaths and cycleways Waste Management Parks, Open Space and streetscapes Aerodromes, Off street car parks 75 Asset Expenditure Types Funding Sources Total New Renewal Expansion Upgrade Non Infrastructure Grants Contrib'ns Council Cash Borrowings $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 1. Summary of planned capital works expenditure (continued) 2017 Property Land 280 280 0 0 0 0 0 0 280 0 0 0 0 0 0 0 0 0 0 0 280 280 0 0 0 0 0 0 280 0 7,450 7,150 200 0 100 0 0 2,936 4,514 0 0 0 0 0 0 0 0 0 0 0 9,690 250 0 0 9,140 300 0 0 4,090 5,600 0 0 0 0 0 0 0 0 0 0 Total Buildings 17,140 7,400 200 0 9,240 300 0 2,936 8,604 5,600 Total Property 17,420 7,680 200 0 9,240 300 0 2,936 8,884 5,600 0 0 0 0 0 0 0 0 0 0 1861 1,861 0 0 0 0 0 0 1,861 0 80 80 0 0 0 0 0 0 80 0 606 205 0 0 180 220 0 0 606 0 0 0 0 0 0 0 0 0 0 0 Land Improvements Total Land Buildings Heritage Buildings Building Improvements Leasehold Improvements Plant and Equipment Heritage Plant and Equipment Plant, Machinery and Equipment Fixtures, Fittings and Furniture Computers and Telecommunications Library Books 76 Total Plant & Equipment 2,546 2,146 0 0 180 220 0 0 2,546 0 14,300 7,005 4,160 1,840 1,140 155 914 5,595 7,792 0 0 0 0 0 0 0 0 0 0 0 1,542 740 0 240 72 490 0 0 1,542 0 750 0 700 50 0 0 0 0 750 0 14,717 4,525 8,323 0 1,845 0 430 7,124 7,163 Infrastructure Roads Bridges Footpaths and cycleways Drainage Recreational, leisure and community facilities Waste Management 25 0 0 0 0 0 0 0 0 0 0 3,192 45 120 180 1,265 1,582 100 427 2,665 0 Aerodromes, 0 0 0 0 0 0 0 0 0 0 Off street car parks 0 0 0 0 0 0 0 0 0 0 Other infrastructure 1,200 633 0 0 150 417 0 143 1,057 0 Total Infrastructure 35,702 12,948 13,303 2,310 4,472 2,669 1,014 6,595 20,931 7,163 Total capital works expenditure 55,668 22,773 13,503 2,310 13,892 3,189 1,014 9,531 32,361 12,763 Parks, Open Space and streetscapes 77 Asset Expenditure Types Funding Sources Total New Renewal Expansion Upgrade Non Infrastructure Grants Contrib'ns Council Cash Borrowings $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 2018 Land 0 0 0 0 0 0 0 0 0 0 Land Improvements 0 0 0 0 0 0 0 0 0 0 Total Land 0 0 0 0 0 0 0 0 0 0 21,045 8,195 200 50 12,600 0 1600 5,745 1,200 12,500 0 0 0 0 0 0 0 0 0 0 2,530 0 0 0 2,230 300 0 0 630 1,900 0 0 0 0 0 0 0 0 0 0 Total Buildings 23,575 8,195 200 50 14,830 300 1,600 5,745 1,830 14,400 Total Property 23,575 8,195 200 50 14,830 300 1,600 5,745 1,830 14,400 0 0 0 0 0 0 0 0 0 0 2044 2,044 0 0 0 0 0 0 2,044 0 80 80 0 0 0 0 0 0 80 0 548 311 0 0 177 60 0 0 548 0 0 0 0 0 0 0 0 0 0 0 Buildings Heritage Buildings Building Improvements Leasehold Improvements Plant and Equipment Heritage Plant and Equipment Plant, Machinery and Equipment Fixtures, Fittings and Furniture Computers and Telecommunications Library Books 78 1. Summary of planned capital works expenditure Property Total Plant & Equipment 2,672 2,435 0 0 177 60 0 0 2,672 0 16,336 7,251 4,010 1,900 2,850 325 1264 5,651 9,421 0 0 0 0 0 0 0 0 0 0 0 2,139 1,335 0 240 59 505 0 0 2,139 0 300 250 0 50 0 0 0 162 138 0 15,571 4,953 7,978 0 2,415 225 0 1,500 6,346 7,725 0 0 0 0 0 0 0 0 0 0 2,890 225 0 0 1,115 1,550 100 185 2,605 0 Aerodromes, 0 0 0 0 0 0 0 0 0 0 Off street car parks 0 0 0 0 0 0 0 0 0 0 Other infrastructure 1,537 720 0 0 350 467 0 500 1,037 0 Total Infrastructure 38,774 14,734 11,988 2,190 6,789 3,072 1,364 7,998 21,687 7,725 Total capital works expenditure 65,020 25,364 12,188 2,240 21,796 3,432 2,964 13,743 26,188 22,125 Infrastructure Roads Bridges Footpaths and cycleways Drainage Recreational, leisure and community facilities Waste Management Parks, Open Space and streetscapes 79 Asset Expenditure Types Funding Sources Total New Renewal Expansion Upgrade Non Infrastructure Grants Contrib'ns Council Cash Borrowings $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 2019 Land 0 0 0 0 0 0 0 0 0 0 Land Improvements 0 0 0 0 0 0 0 0 0 0 Total Land 0 0 0 0 0 0 0 0 0 0 11,970 2,220 200 450 9,100 0 100 1,020 1,850 9,000 0 0 0 0 0 0 0 0 0 0 830 0 0 0 430 400 0 0 830 0 0 0 0 0 0 0 0 0 0 0 Total Buildings 12,800 2,220 200 450 9,530 400 100 1,020 2,680 9,000 Total Property 12,800 2,220 200 450 9,530 400 100 1,020 2,680 9,000 0 0 0 0 0 0 0 0 0 0 1498 1,498 0 0 0 0 0 0 1,498 0 80 80 0 0 0 0 0 0 80 0 411 217 0 0 144 50 0 0 411 0 0 0 0 0 0 0 0 0 0 0 Buildings Heritage Buildings Building Improvements Leasehold Improvements 1. Summary of planned capital works expenditure Property Plant and Equipment Heritage Plant and Equipment Plant, Machinery and Equipment Fixtures, Fittings and Furniture Computers and Telecommunications Library Books 80 Total Plant & Equipment 1,989 1,795 0 0 144 50 0 0 1,989 0 14,004 6,794 4,065 1,000 1,820 325 4052 3,122 6,830 0 0 0 0 0 0 0 0 0 0 0 Footpaths and cycleways 3,439 1,989 0 240 555 655 500 14 2,924 0 Drainage 1,100 350 0 750 0 0 0 150 950 0 10,059 6,541 200 100 25 0 281 Infrastructure Roads Bridges Recreational, leisure and community facilities Waste Management 3,193 1,159 8,618 0 0 0 0 0 0 0 0 0 0 3,114 70 0 0 1,165 1,879 100 273 2,741 0 Aerodromes, 0 0 0 0 0 0 0 0 0 0 Off street car parks 0 0 0 0 0 0 0 0 0 0 Other infrastructure 2,139 1,270 0 0 350 519 0 500 1,639 0 Total Infrastructure 33,855 17,014 7,258 2,190 3,990 3,403 4,652 4,341 23,703 1,159 Total capital works expenditure 48,644 21,029 7,458 2,640 13,664 3,853 4,752 5,361 28,372 10,159 Parks, Open Space and streetscapes 81 Summary of planned human resources expenditure 2015/2016 $’000 2016/2017 $’000 2017/2018 $’000 2018/2019 $’000 Executive Services - Permanent Part Time 683 702 645 673 - Permanent Full Time 2,102 1,845 2,080 2,174 2,785 2,547 2,725 2,847 Total Executive Services Finance and Organisational Improvement - Permanent Part Time 800 912 952 994 - Permanent Full Time 5,410 6.652 8,400 10,586 6,210 7,564 9,352 11,580 Total Finance and Organisational Improvement Planning and Major Projects - Permanent Part Time 1,554 1,598 1,668 1,741 - Permanent Full Time 10,412 10,529 11,647 12,182 11,966 12,127 13,315 13,923 Total Planning and Major Projects Infrastructure and Technology - Permanent Part Time 585 602 628 656 - Permanent Full Time 16,731 17,356 19,133 20,035 17,316 17,958 19,761 20,691 Total Infrastructure and Technology Community Services - Permanent Part Time 14,461 14,851 15,505 16,187 - Permanent Full Time 12,829 12,728 15,484 16,557 27,290 27,579 30,989 32,744 Total Community Services Advocacy and Communications - Permanent Part Time 395 406 424 443 - Permanent Full Time 1,719 1,728 1,918 2,006 Total Advocacy and Communications 2,114 2,134 2,342 2,449 Governance and Economic Development - Permanent Part Time 3,891 3,912 4,084 4,264 - Permanent Full Time 9,351 10,085 11,383 11,963 Total Governance and Economic Development 13,242 13,997 15,467 16,227 Casual 588 614 643 677 Total 81,510 84,521 89,390 94,624 Summary of planned human resources expenditure (cont’d) 2015/2016 FTE 2016/2017 FTE 2017/2018 FTE 2018/2019 FTE Executive Services - Permanent Part Time 6.5 6.5 5.2 5.2 - Permanent Full Time 15.0 13.0 13.0 13.0 21.5 19.5 18.2 18.2 Total Executive Services Finance and Organisational Improvement - Permanent Part Time 8.8 8.8 8.8 8.8 - Permanent Full Time 51.0 51.0 51.0 52.0 59.8 59.8 59.8 60.8 Total Finance and Organisational Improvement Planning & Major Projects - Permanent Part Time 13.8 13.8 13.8 13.8 - Permanent Full Time 91.0 91.0 91.0 92.0 104.8 104.8 104.8 105.8 Total Planning and Major Projects Infrastructure and Technology - Permanent Part Time 7.7 7.7 7.7 7.7 - Permanent Full Time 161.0 162.7 163.0 165.0 168.7 170.4 170.7 173.7 Total Infrastructure and Technology Community Services - Permanent Part Time 155.0 157.0 155.0 156.0 - Permanent Full Time 112.0 112.0 113.0 114.0 267.0 269.0 268.2 270.0 Total Community Services Advocacy and Communications - Permanent Part Time 6.6 6.6 6.6 6.6 - Permanent Full Time 13.0 13.0 13.0 13.0 Total Advocacy and Communications 19.6 19.6 19.6 19.6 Governance and Economic Development - Permanent Part Time 52.0 52.0 52.0 52.0 - Permanent Full Time 91.0 91.0 91.0 91.0 Total Governance and Economic Development 143.0 143.0 143.0 145 Casual 8.5 8.5 8.5 8.5 Total 792.8 794.4 792.7 801.5 83 8. Glossary Act Adjusted Underlying (Operating) Result Annual report Asset expansion expenditure Asset expenditure type Asset renewal expenditure Asset upgrade expenditure Australian Accounting Standards (AASB) Budget Capital works expenditure Council plan Financial resources Financial statements Financial year Human resources Indicator Initiatives Major initiatives Minister Model budget New asset expenditure Non-financial resources means the Local Government Act 1989 means the result obtained by adding back to the Total Comprehensive result the following items: non-recurrent capital grants, non-monetary asset contributions and other contributions to fund capital expenditure means a report of the activities of the previous financial year and contains a report of operations, audited financial statements and an audited performance statement means expenditure that extends the capacity of an existing asset to provide benefits to new users at the same standard as is provided to existing beneficiaries means the following types of asset expenditure: (a) asset renewal expenditure; (b) new asset expenditure; (c) asset upgrade expenditure; (d) asset expansion expenditure means expenditure on an existing asset or on replacing an existing asset that returns the service capability of the asset to its original capability means expenditure that: (a) enhances an existing asset to provide a higher level of service; or (b) increases the life of the asset beyond its original life means the accounting standards published by the Australian Accounting Standards Board means a plan setting out the services and initiatives to be funded for the financial year and how they will contribute to achieving the strategic objectives specified in the council plan means expenditure on non-current assets and includes new assets, asset renewal, asset expansion and asset upgrade means a plan setting out the medium-term strategic objectives, strategies, strategic indicators and resources reflecting vision and aspirations of the community for the next four year means income, expenditure, assets, liabilities, equity, cash and capital works required to deliver the services and initiatives in the budget means the financial statements and notes prepared in accordance with the Australian Accounting Standards as they apply to the general purpose financial reports of local governments and a statement of capital works and included in the annual report means the period of 12 months ending on 30 June each year means the staff employed by a council means what will be measured to assess performance means actions that are one-off in nature and/or lead to improvements in service means significant initiatives that will directly contribute to the achievement of the council plan during the current year and have a major focus in the budget means the Minister for Local Government means the Victorian City Council Model Budget prepared annually by the Institute of Chartered Accountants in Australia means expenditure that creates a new asset that provides a service that does not currently exist means the resources other than financial resources required to deliver the services and initiatives in the budget 84 Non-infrastructure capital works Non-recurrent grant Planning and accountability framework Performance statement Recurrent grant Regulations (LGR) Report of operations Services Statement of capital works Strategic objectives Strategic resource plan Strategies Statement of human resources Statements of non-financial resources Summary of planned capital works expenditure Summary of planned human resources expenditure means projects Included in the annual capital works program that are considered to be maintenance rather than capital expenditure for accounting purposes. These include tree planting, feasibility studies and computer software and hardware implementations. means a grant obtained on the condition that it be expended in a specified manner and is not expected to be received again during the period covered by a Council’s Strategic Resource Plan means the key statutory planning and reporting documents that are required to be prepared by councils to ensure accountability to local communities in the performance of functions and exercise of powers under the Act means a statement including the results of the prescribed service outcome indicators, financial performance indicators and sustainable capacity indicators for the financial year and included in the annual report means a grant other than a non-recurrent grant means the Local Government (Planning and Reporting) Regulations 2014 means a report containing a description of the operations of the council during the financial year and included in the annual report means assistance, support, advice and other actions undertaken by a council for the benefit of the local community means a statement which shows all capital expenditure of a council in relation to non-current assets and asset expenditure type prepared accordance to the model statement of capital works in the Local Government Financial Report means the outcomes a council is seeking to achieve over the next four years and included in the council plan means a plan of the financial and non-financial resources for at least the next four years required to achieve the strategic objectives in the council plan means high level actions directed at achieving the strategic objectives in the council plan means a statement which shows all council staff expenditure and numbers of full time equivalent council staff means a statement which describes the non-financial resources including human resources means a summary of capital works expenditure in relation to non-current assets classified according to the model statement of capital works in the Local Government Financial Report, by asset expenditure type and funding source means a summary of permanent council staff expenditure and numbers of full time equivalent council staff categorised according to the organisational structure of the council 85
