Transcript BUDGET OVERVIEW

Whyalla City Council
2008-2009
DRAFT BUDGET
OVERVIEW
Whyalla City Council
BUDGET GOALS
Reduce the Operating Deficit.
 Asset Replace/Replenishment = to/ >
Annual Depreciation expense.
 Control recurrent expenditure growth
 Maintain Loans with in Borrowing
Benchmark (20% of rates)
 Ensure budget reflects Strategic Plan
and Ten Year Financial Plan

Whyalla City Council
OUTCOMES
Operating deficit increased
 Asset renewal/Replacement > Annual
Depreciation.
 Recurrent expenditure increase: 13.6%.
 Loans = 12.57% of rate revenue
 6% Rate Increase Proposed (CPI is 4.2%).
 Budget & Community Plan.

Whyalla City Council
ACHIEVEMENTS
2007 - 2008
Whyalla City Council
CAPITAL PROJECTS
Civic Building Upgrade
 Road Reconstruction Program
 Bradford Street
 City Plaza Development

 Airport
secure car park
Whyalla City Council
CAPITAL PROJECTS
 Whitehead
Street
 Boat Ramp Upgrades
 Civic Park Arboretum
 Changeovers to Diesel Fleet
 Foreshore Master Plan – Major
infrastructure commenced
Whyalla City Council
CAPITAL PROJECTS
Whyalla City Council
STRATEGIC/GOVERNANCE
 Community
Plan
 Remote Disaster Recovery Facility
Revised 10yr Long term Financial Plan
 10 year Asset Management Plans
 Extensive Policy Review
 Staff Turnover 16%

 Trainee
Positions
Whyalla City Council
ENVIRONMENT
Mt Laura Conservation Reserve &
Environment Unit
 Implementation of Waste Strategy
 Treated Effluent Pipe Network
commissioned.
 Sand Replenishment at foreshore
 Asbestos Removal

Whyalla City Council
COMMUNITY
Commenced
City Master Plan
Sport & Recreation needs Audit
New Library concept plans
completed
Whyalla City Council
COMMUNITY
New
format for WCN news
Whyalla City Council
CROSS FUNCTIONAL
ACHIEVEMENTS
 Risk
Management Award
 Grants commission funding
increased by $36,714
 27% OHSW Rebate
 $37,409 Risk Management
Rebate
 Productivity saving $209,341
Whyalla City Council
GENERAL OPERATIONS
Boundary extension DPA approved
 District Centre Zone DPA approved
 Coastal & General DPA on
consultation

Whyalla City Council
GENERAL OPERATIONS
 Approved
Building works $50
million, 25% increase.
 Whyalla Industrial Estate –
Stage 1, 90% of land sold
 Approved various land parcels
for residential development
Whyalla City Council
TOURISM & VISITATION
Snapper

Competition.
Secured Motor Home convention
Whyalla City Council
TOURISM & VISITATION
Whyalla City Council
2008/2009
THE CHALLENGES AHEAD
Whyalla City Council
BUDGET CHALLENGES
Financial Sustainability
 Ageing Infrastructure
 Levels of service
 EB obligations 5% wage rise
 Cost shifting to Local government
 Increased legal requirements
 Staff retention & attraction

Whyalla City Council
BUDGET INITIATIVES
Efficiencies created in service
delivery through continuous
improvement
 Ongoing review of non-core services
 Reserve funds used for capital works
as opposed to loan funds – reducing
net interest margin
 Reviewed equity of Rating system
 Increased Asset Sale income

EXPENDITURE SUMMARY
Whyalla City Council
$000
Expenditure
2008/09
Operating Exp
(less depreciation)
Depreciation
$ 17,991
$ 4,128
Capital Improvement $ 23,725
Loan Principle pmts
$ 1,751
To Reserves
$ 1,039
TOTAL
$ 48,634
INCOME SUMMARY
Whyalla City Council
$000
INCOME
2008/09
Cash for Projects
brought fwd
$ 2,605
Other Operating
$ 10,408
Capital Improvement $ 18,254
Rates & Fixed
Charge
From Reserves
$ 10,970
TOTAL
$ 48,713
$ 6,476
Whyalla City Council
KEY PERFORMANCE
INDICATORS
Target
Operating
Surplus Ratio
+
0-15%
Net Financial
Liabilities (000)
06/07
07/08
08/09
09/10
10/11
(4)%
(5)%
(7)%
6.%
8.%
(181)
1,767
4,150
5,356
4,116
Net Financial
Liabilities Ratio
<0% &
> 100%
(1.0)% 9.5%
19.8%
23.3% 20.9%
Interest cover
Ratio
10%
(1.2)% 1.1%
0.8%
1.3%
1.9%
Asset
Sustainability
Ratio
100%
103
94
85%
108%
127
OPERATING STATEMENT
Whyalla City Council
$000
Operating Revenue
 Rates
 Other Rates
 Statutory Charges
 User Charges
 Operating Grants & Subsidies
 Investment Income
 Reimbursements
 One Steel Ex-Gratia
 Other
 Total Operating Revenue
08/09
9,347
1,818
438
3,069
4,975
210
131
584
792
21,364
$000
07/08
8,523
1,524
372
2,300
5,015
186
290
---728
18,938
Whyalla City Council
OPERATING REVENUE
MIX
User Charges
Other
15%
6%
Statutory
Charges
2%
Operating
Grants &
Subsidies
23%
OneSteel
3%
General rates
43%
Waste Charge
8%
OPERATING STATEMENT
Whyalla City Council
$000
Operating Expenses
 Employee Costs
 Contractual Services
 Materials
 Finance/Interest Expenses
 Depreciation
 Other Expenses
 Total Operating Expenses

$000
08/09
7,633
3,406
1,843
439
4,128
4,671
22,120
07/08
6,712
3,324
1,577
339
3,605
3,867
19,424
Operating Surplus/(Deficit)
before Capital Revenues
(756)
(486)
Whyalla City Council
OPERATING EXPENSE
MIX
Other
21%
Interest
Expense
2%
Depreciation
19%
Materials
8%
Employee
Costs
35%
Contractual
Services
15%
Whyalla City Council
STRATEGIC PLAN
RELATIONSHIP
Council’s expenditure has been
assessed in terms of services and
functions it provides
 Service Profiles have been
developed with budget details
 Service Profiles can be related to
Strategic Planning Goals coming
from the Community Plan

Whyalla City Council
STRATEGIC PLANNING

Community Plan
– Council Governance
– Economic Prosperity
– Environmental Care
– Community Wellbeing
Whyalla City Council
COUNCIL GOVERNANCE

Personnel Management and
Development
– IRM implementation (Integrated
Integrated Risk Management)
– Ongoing staff training
– Governance projects
– Ongoing OHS, Balanced Scorecard and
Asset management programs
Whyalla City Council
COUNCIL GOVERNANCE

Information technology
– PABX Upgrade
– Server Replacements
– Various Software
– Printers & Scanners
Whyalla City Council
ECOMOMIC PROSPERITY

Roads and Footpaths
– Concrete footpath construction
– Kerb replacement program
– Sealed roads
– Roads to Recovery
– Asset Management program
– Foreshore Master Plan
Whyalla City Council
ECONOMIC PROSPERITY
– New Library Development
– Completion of Light Vehicles
changeover to Diesel
– Finalise Civic Building Upgrade
– Airport Terminal Building Upgrade
– Airport Security Cameras
Whyalla City Council
ECONOMIC PROSPERITY

Economic Development
–
–
–
–
–
–
–
WEDB Subsidy and co-operative action on projects
Upper Spencer Gulf Common Purpose Group
Advancing Whyalla
Various Residential Property Development
Business Incubator
Kingfish Harbour Construction
Whyalla Industrial Park Development
Whyalla City Council
ENVIRONMENTAL CARE

Environmental Management
– Centralised Irrigation
– ASR Finalisation
– Asbestos Removal Program
– Solar Rebate Scheme
– Renewable Energy Projects
Whyalla City Council
ENVIRONMENTAL CARE

Environmental Management
– Landfill Transfer Station
– Waste Cell Construction
– Pest plant control
– WERIC
– Clean up Australia day
– Recycling promotion
Whyalla City Council
COMMUNITY WELLBEING

Visitation Promotion and Development
– Tourism advertising and marketing
– Maritime museum marketing
– Special events
– Conferences
– Tourism signage
– Annual snapper competition
Whyalla City Council
COMMUNITY WELLBEING
 Parks
and Recreation facilities
– Various Solar Lighting
– Various Reserve Upgrades (Bradford, Loring,
Norton, Barson)
– Foreshore Playground Shade sails
–
Whyalla City Council
COMMUNITY WELLBEING

Community Services and Development
– Donations and community grants
– Community arts project
– Youth week
– Whyalla Gift Foundation
– Performing arts
– Active Community Field Officer
Whyalla City Council
COMMUNITY WELLBEING

Community Services and
Development (cont)
– Youth Council
– Donation to Reserve Cadet units
– Aged Care Contribution
– Youth Development Contribution
Whyalla City Council
BUDGET 2008/2009





Slight Cash budget surplus
Operating Deficit of $820K
6% Rate increase in light of recent
Financial Sustainability inquiry (CPI
4.2%) - halved rate increase above CPI
Maximise funding of capital works and
strategic planning priorities
Retention of all services
Whyalla City Council
FUTURE CHALLENGES







Managing the Infrastructure Funding Gap
Achieving an operating surplus
Contain costs and review services in light of
financial sustainability
Completion of 10 year asset plan
Adequate support for sustainable
development due to the exploration boom.
Governance, Risk Management
Staff succession planning
Whyalla City Council
RATING STRATEGY
 Regional
Centre Zone
 Industrial Land
 Shacks
Whyalla City Council
RATES INCREASE 6%
WHAT IT REALLY MEANS


An overall increase in rate revenue
Individual Property Level
–
–
–

Category
Land Valuation
Rebate & Concessions
Other Charges
–
–
–
NRM Levy
Refuse Charge
Fixed Charge
Whyalla City Council
VALUATION HOT SPOTS
Whyalla City Council
RATE HOT SPOTS
Whyalla City Council
RATE HOT SPOTS
Type
Site Value
06/07
Site Value
07/08
Rates
06/07
Rates
07/08
% Change
Business
32500
54000
13000
65000
70000
26000
2311
3651
1096
2464
2632
1154
6.61%
-27.9%
5.22%
Industry
179000
26500
16000
360000
53000
32000
8682
1529
1037
12376
2061
1355
42.55%
34.75%
30.7%
Resident
65000
48500
18500
84000
118000
32000
1094
889
516
987
1274
549
-9.74%
43.28%
6.42%
Shacks
100000
96000
80000
140000
126000
100000
415
409
389
598
566
507
44.22%
38.26%
30.37%
Whyalla City Council
RATE RELIEF






Mandatory Rebates
Discretionary Rebates
Rate Capping
Remission and Postponement
Refuse Rate Concessions
Government Concessions