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2008-2009 DRAFT BUDGET OVERVIEW

2008-2009 DRAFT BUDGET OVERVIEW. 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)

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2008-2009 DRAFT BUDGET OVERVIEW

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  1. 2008-2009DRAFT BUDGET OVERVIEW

  2. 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

  3. 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.

  4. ACHIEVEMENTS 2007 - 2008

  5. CAPITAL PROJECTS • Civic Building Upgrade • Road Reconstruction Program • Bradford Street • City Plaza Development • Airport secure car park

  6. CAPITAL PROJECTS • Whitehead Street • Boat Ramp Upgrades • Civic Park Arboretum • Changeovers to Diesel Fleet • Foreshore Master Plan – Major infrastructure commenced

  7. CAPITAL PROJECTS

  8. 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

  9. ENVIRONMENT • Mt Laura Conservation Reserve & Environment Unit • Implementation of Waste Strategy • Treated Effluent Pipe Network commissioned. • Sand Replenishment at foreshore • Asbestos Removal

  10. COMMUNITY • Commenced City Master Plan • Sport & Recreation needs Audit • New Library concept plans completed

  11. COMMUNITY • New format for WCN news

  12. 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

  13. GENERAL OPERATIONS • Boundary extension DPA approved • District Centre Zone DPA approved • Coastal & General DPA on consultation

  14. 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

  15. TOURISM & VISITATION • Snapper Competition. • Secured Motor Home convention

  16. TOURISM & VISITATION

  17. 2008/2009 THE CHALLENGES AHEAD

  18. 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

  19. 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

  20. EXPENDITURE SUMMARY $000

  21. INCOME SUMMARY $000

  22. KEY PERFORMANCE INDICATORS Target 06/07 07/08 08/09 09/10 10/11

  23. OPERATING STATEMENT $000 $000 Operating Revenue 08/09 07/08 • Rates 9,347 8,523 • Other Rates 1,818 1,524 • Statutory Charges 438 372 • User Charges 3,069 2,300 • Operating Grants & Subsidies 4,975 5,015 • Investment Income 210 186 • Reimbursements 131 290 • One Steel Ex-Gratia 584 ---- • Other 792 728 • Total Operating Revenue 21,364 18,938

  24. User Charges General rates Other 15% 43% 6% Statutory Charges 2% Operating Grants & Subsidies Waste Charge OneSteel 23% 8% 3% OPERATING REVENUE MIX

  25. OPERATING STATEMENT $000 $000 Operating Expenses 08/09 07/08 • Employee Costs 7,633 6,712 • Contractual Services 3,406 3,324 • Materials 1,843 1,577 • Finance/Interest Expenses 439 339 • Depreciation 4,128 3,605 • Other Expenses 4,671 3,867 • Total Operating Expenses 22,120 19,424 • Operating Surplus/(Deficit) before Capital Revenues (756) (486)

  26. Employee Other Costs 21% 35% Interest Expense 2% Depreciation Contractual 19% Services Materials 15% 8% OPERATING EXPENSE MIX

  27. 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

  28. STRATEGIC PLANNING • Community Plan • Council Governance • Economic Prosperity • Environmental Care • Community Wellbeing

  29. 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

  30. COUNCIL GOVERNANCE • Information technology • PABX Upgrade • Server Replacements • Various Software • Printers & Scanners

  31. ECOMOMIC PROSPERITY • Roads and Footpaths • Concrete footpath construction • Kerb replacement program • Sealed roads • Roads to Recovery • Asset Management program • Foreshore Master Plan

  32. ECONOMIC PROSPERITY • New Library Development • Completion of Light Vehicles changeover to Diesel • Finalise Civic Building Upgrade • Airport Terminal Building Upgrade • Airport Security Cameras

  33. 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

  34. ENVIRONMENTAL CARE • Environmental Management • Centralised Irrigation • ASR Finalisation • Asbestos Removal Program • Solar Rebate Scheme • Renewable Energy Projects

  35. ENVIRONMENTAL CARE • Environmental Management • Landfill Transfer Station • Waste Cell Construction • Pest plant control • WERIC • Clean up Australia day • Recycling promotion

  36. COMMUNITY WELLBEING • Visitation Promotion and Development • Tourism advertising and marketing • Maritime museum marketing • Special events • Conferences • Tourism signage • Annual snapper competition

  37. COMMUNITY WELLBEING • Parks and Recreation facilities • Various Solar Lighting • Various Reserve Upgrades (Bradford, Loring, Norton, Barson) • Foreshore Playground Shade sails

  38. COMMUNITY WELLBEING • Community Services and Development • Donations and community grants • Community arts project • Youth week • Whyalla Gift Foundation • Performing arts • Active Community Field Officer

  39. COMMUNITY WELLBEING • Community Services and Development (cont) • Youth Council • Donation to Reserve Cadet units • Aged Care Contribution • Youth Development Contribution

  40. 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

  41. 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

  42. RATING STRATEGY • Regional Centre Zone • Industrial Land • Shacks

  43. 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

  44. VALUATION HOT SPOTS

  45. RATE HOT SPOTS

  46. RATE HOT SPOTS

  47. RATE RELIEF • Mandatory Rebates • Discretionary Rebates • Rate Capping • Remission and Postponement • Refuse Rate Concessions • Government Concessions

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