ANNUAL BUSINESS PLAN & BUDGET SUMMARY 2014/15 · 2014/15 Budget and Annual Business Plan This summary outlines the services and projects that the Council plans to provide and implement

ANNUAL BUSINESS PLAN & BUDGET SUMMARY 2014/15 ______________________________________________________________________________

May 2014 1

YOUR BUDGET - BE INVOLVED

We invite you to comment on the proposed 2014/15 Budget and Annual Business Plan

This summary outlines the services and projects that the Council plans to provide and implement in the 2014/15 financial year and its sources of funding. Council is seeking your feedback on this proposed budget and annual business plan.

Please take this opportunity to have your say. Your feedback is important to us, and all feedback and comments will be considered by Council during its 2014/15 budget deliberations.

Terry Buss Chief Executive Officer

BUDGET SUMMARY

Operational costs in the proposed budget (excluding St Martins) have been contained to an increase of 3.6 per cent, despite:

The impact of utility cost pressures, which are largely beyond Council’s control, including a water rate increase of $123,840 or 24.2 per cent over what was budgeted in 2013/14;

Additional costs associated with the local government elections in November 2014 of $168,500;

A funding increase of $240,000 to cover development application workload increases and the creation of a rapid response team in support of depot maintenance operations.

Rate funded capital expenditure programs have been increased by $1.73 million or 12.9 per cent.

Average rates will be increasing by 4.0 per cent in 2014/15.

An amount of $2.0 million has been budgeted for community hub and related development, with further funding of $3.0 million projected in 2015/16. All is asset sale funded.

PROPOSED BUDGET 2014/15 AT A GLANCE

Total Operating Expenditure = $57.43m

Total Capital Expenditure = $20.49m

Rate Revenue = $48.94m

Other Revenue = $15.25m

NRM Levy = $1.197m

Loans = $1.843m

Operating Surplus Ratio = 13.8%

Sustainability Ratio = 104.2%

Loan Repayment % of Rates = 6.0%

Cash Net of Reserves = $59,903

THE STRATEGIC FOCUS OF THE COUNCIL

Key influences on the budget and annual business plan of the Council include:

Sustainability - ensuring Council remains strong financially on a long term basis, and that future generations of ratepayers are not left to pick up the bill for work that should have been undertaken earlier.

Asset management - ensuring a responsible, systematic and structured approach is taken to the maintenance, upgrade and operation of community assets, valued at $820 million.

Stormwater flood mitigation - ensuring work is undertaken to minimise the impact of floods within the West Torrens community, including the impact of the Brown Hill / Keswick Creek system.


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This focus is consistent with the Toward 2025 Community Plan of the Council which was adopted in June 2009.

A strategic focus is a must if long term issues are to be managed responsibly. Community assets must be protected and preserved for future generations to use and enjoy. Many of these assets have useful lives of 100 years, perhaps longer if managed appropriately. COUNCIL’S 10 YEAR PLAN

A 10 year approach has been taken to the budget, based on the strategic agenda of the Council and the need to address sustainability, asset management and stormwater flood mitigation priorities. Forward estimates have been compiled and they include plans over the next 10 years for:

Capital expenditure to be committed to road and footpath infrastructure totalling $120.1 million (or $12.01 million per annum);

Expenditure to be committed to drainage and other capital works totalling $107.6 million, including $25.8 million on flood mitigation works in the Brown Hill / Keswick Creek catchment;

Capital expenditure to be committed to buildings, plant and equipment totalling $55.0 million, including $8.1 million to fund the development of community hub and related facilities;

An amount of $44.7 million to be borrowed - a very manageable commitment by the Council with loan repayments as a percentage of rates estimated not to exceed 7.0 per cent;

$283 MILLION OVER THE NEXT 10 YEARS

It is estimated that capital expenditure will total $283 million over the next 10 years, and be committed as follows:

More detailed information is provided in the proposed budget and annual business plan for 2014/15, a copy of which is available on-line at www.westtorrens.sa.gov.au. Copies are also available for inspection in the Civic Centre and Hamra Centre Library. SUMMARY OF KEY PROJECTS IN 2014/15

Drainage

An amount of $2.562 million is budgeted for further drainage and stormwater flood mitigation work to be undertaken including:

$2.027 million in construction work associated with Lockleys catchment drainage (Rutland Avenue system);

$350,000 to modify / extend existing stormwater drainage in Ashley Street, Torrensville (Hayward Avenue catchment).

Roads38.3%

Footpaths4.1%

Drainage18.8%

Buildings11.9%

Plant6.4%

Library1.2%

Other19.2%

Capital Expenditure - 10 Years to 2023/24

http://www.wtcc.sa.gov.au/


May 2014 3

This is part of an ongoing drainage commitment over many years by Council and is largely loan funded.

Road Maintenance

Council is responsible for 294 kilometres of local roads and 669 kilometres of kerbing, and is budgeting an amount of $5.54 million for the ongoing maintenance of this infrastructure, largely comprising road reseals and the replacement of kerbing and gutters.

Road Reconstruction

Council’s road reconstruction program totals $3.20 million, for the following roads to be upgraded:

Hudson Court, Netley;

Brooker Terrace, Richmond (part);

West Thebarton Road / Phillips Street, Thebarton, incorporating the undergrounding of power (stage one).

Footpath Program

Council has responsibility for 626 kilometres of footpaths throughout the West Torrens area, and is budgeting $920,538 for replacement and new footpath construction, including remediation works.

Playground Upgrade Program

Council’s playground upgrade program totals $780,000, with the following playgrounds to be upgraded:

DCA Reserve, Beare Avenue, Adelaide Airport / Netley;

Lysle Street Reserve, Brooklyn Park;

Civic Centre - Memorial Gardens, Hilton;

Halsey Road Reserve, Fulham;

Parkin Reserve, Neston Avenue, Netley;

River Torrens Linear Park, Riverview Drive, Lockleys;

River Torrens Linear Park, Sherriff Street, Underdale;

Poplar Street Reserve, West Beach;

Cummins Reserve, Saratoga Drive, Novar Gardens;

Camden Oval (South), Novar Gardens adjacent to Glenlea Tennis Club.

Sport and Recreation Facility Upgrades

$1.29 million is being committed to the update and maintenance of other sport and recreation facilities throughout the area. Key initiatives include:

$465,000 for projects along the River Torrens Linear Park;


May 2014 4

$380,000 to upgrade reserve irrigation systems to meet SA Water guidelines;

$315,000 for other reserves works, which include the upgrade of Reedbeds Community Centre Reserve, the upgrade and relocation of the war memorial in Bill Sheppard Reserve, and road interface improvements for Kings Reserve.

Hub and Related Funding

An amount of $2 million has been budgeted for further community hub and related development, with further funding of $3.0 million projected in 2015/16. All is asset sale funded.

Building Upgrades

Building upgrades total $1.125 million and include:

$250,000 for the installation of DDA compliant public toilet facilities within the Camden Oval complex;

$300,000 for Thebarton Theatre fire safety (stage two);

$200,000 for building compliance upgrades;

$160,000 for DDA and fire compliance upgrades at the Western Youth Centre.

Plant and Equipment Upgrades

$1.87 million is being committed, after trade-in values, to plant and equipment upgrades, including trucks, tractors, motor vehicles and library resources.

KEY SERVICES BEING MAINTAINED

Operational expenditure in 2014/15 has increased by $2.25 million (4.1 per cent) compared with 2013/14 budget estimates. The operational budget of the Council for 2014/15 is committed as follows:

Asset Maintenance

Council has asset maintenance teams responsible for the following:

• Road maintenance • Landscaping • Tree maintenance • Grass maintenance • Property and building maintenance • General maintenance. Depot and property maintenance works expenditure is being increased to $11.8 million (up by 8.2 per cent).

Asset Maintenance /

Management43.4% Development,

Regulatory

and Waste16.1%

Community Services

22.6%

Corporate & Governance

17.9%

City of West TorrensOperational Expenditure for 2014/15


May 2014 5

Waste Management

Council is budgeting to spend $4.52 million on waste management services in the 2014/15 financial year.

Costs have been impacted adversely by estimated increases of $59,000 in the waste-to-landfill levy imposed by the South Australian government, although this cost is offset by the anticipated removal of the carbon tax by the commonwealth government. E-waste and hard-waste collection services will be offered again to all residential households in 2014/15, and illegal dumping and food waste recycling programs are being continued. The City of West Torrens has reduced its disposal to landfill by around 50 per cent since the introduction of the split bin collection system. Library Services

The Hamra Centre Library provides a range of information and related services to the community.

An amount of $2.68 million has been allocated in the 2014/15 budget for these services to be maintained.

St Martins

The St Martins aged care facility offers quality and fully accredited support to 115 elderly and frail residents. The $7.87 million operational budget of St Martins is entirely self-funded. No ratepayer funds are used.

Continuation of Community Care Programs

In recognition of the increased need for community-based personal care services for the elderly, frail aged and those with disabilities, Council has maintained its level of services with assistance from the state and commonwealth governments. This has included home assistance and maintenance support, and in-home personal support programs.

The budget allocation for 2014/15 is $656,572, although this is largely state and commonwealth government funded.


May 2014 6

Other Community Services

Other services to the community involve a budget allocation in 2014/15 of $1.19 million and include:

Community development programs and events; and

Community information and consultation. These programs are partly supported by state and commonwealth government funding.

COUNCIL INCOME

Key financial indicators are all positive in the 2014/15 budget, based on the following rate increases:

Minimum Rate : Up 4.0% Non-Residential : Up 4.0% Residential : Up 4.0%

These increases provide the foundation for addressing long term asset management and sustainability requirements. Council’s operating statement in the proposed 2014/15 budget projects a surplus from operations of $6.76 million (operating income less operating expenses), and forward

estimates project modest surpluses over the next 10 years. Asset sustainability ratios are better than break even, cash flow projections are strong and indebtedness levels are low. Council relies heavily on rates to fund its community programs, rates being 76.2 per cent of the 2014/15 income budget, as shown in the following chart.

Council has the 2nd Lowest Average Residential Rates in Metro Adelaide

The average residential rates for West Torrens Council in 2013/14 were $983 - the second lowest in metropolitan area, as shown below.

Council

Average Rates

$ Ratio

%

Walkerville 1,760 1.8

Adelaide Hills 1,717 1.7

Unley 1,543 1.6

Prospect 1,538 1.6

Burnside 1,536 1.6

Mitcham 1,439 1.5

Tea Tree Gully 1,404 1.4

Norwood, Payneham 1,379 1.4

Holdfast Bay 1,354 1.4

Gawler 1,301 1.3

Onkaparinga 1,299 1.3

Marion 1,299 1.3

Campbelltown 1,282 1.3

Rates & Equivalent

76.2%

Statutory Charges

2.7%

User Charges

14.1%Grants5.4%

Other1.5%

City of West TorrensIncome for 2014/15


May 2014 7

Playford 1,206 1.2

Charles Sturt 1,203 1.2

Salisbury 1,139 1.2

West Torrens 983 1.0

Pt Adelaide Enfield 894 0.9

Average 1,349 1.4

Source: LGA Survey

Does Council have a rates windfall when property values increase?

The answer to this question is no - Council does not benefit from property value increases. The following graph shows how rates in the dollar are reduced to compensate for increased property values, and so remove any windfall gain that would otherwise have occurred.

LOANS

Council’s loan program for 2014/15 totals $1.843 million ($1.714 million in 2013/14), and is for drainage infrastructure. Loan repayments expressed as a percentage of rates is the benchmark that is best used to assess Council’s indebtedness. Projected percentages for West Torrens are as follows:

Loans %

Year of Rates

2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/222022/23 2023/24

6.3 6.0 5.7 6.1 6.4 6.2 5.8 6.3 6.8 6.6 7.0

These percentages are considered moderate and manageable. RATING OPTIONS

Rating powers available to the City of West Torrens are established by state government legislation under the Local Government Act, and a number of flexibilities and options are available for consideration. These include:

Site and capital valuation systems;

Differential rating;

Minimum rates;

Fixed charges;

Service rates/charges;

Tiered rating;

Rate capping.

All options are reviewed in detail in the budget and annual business plan of the Council.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

0.0

0.1

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0.3

0.4

0.5

1999 2001 2003 2005 2007 2009 2011 2013

Valu

ati

on

($b

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ns)

Rate

in t

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$

Year

City of West TorrensResidential Rates in the Dollar and Valuations

Rates in the Dollar

Valuations


May 2014 8

PLANNED RATE INCREASE

An overall average rate increase of 4.0 per cent is proposed for 2014/15, which is 0.1 per cent lower than that foreshadowed in the forward estimates of last year’s budget.

RATING POLICIES

Council intends that inequities, hardship and significant rate increases within the community be managed using existing provisions of the Local Government Act that allow:

Rates to be rebated (reduced) on a range of grounds, including to provide relief from what would otherwise amount to a substantial change in rates; and

Rates to be remitted (cancelled or reduced) or postponed if the payment of rates would cause hardship.

Council has a number of rating policies in place, and it is intended that these be continued in 2014/15. Rate postponement for seniors is now mandatory following recent amendments to the Local Government Act 1999 and the Local Government (General) Regulations 1999. These changes mandate an entitlement to postponement if:

The ratepayer holds a state seniors card or has an application pending when an entitlement exists;

The property in question is the principal place of residence; and

The property is owned by the principal ratepayer or the principal ratepayer and their spouse.

Applications are required in a manner and form to be determined by Council, and are only required to be submitted in the first year, rather than on an ongoing annual basis. The first $500 in rates cannot be postponed.

An application can only be rejected if capital liabilities associated with the property at the time of application exceed 50 per cent of the capital value of the land, based on current mortgages over the property that were registered prior to 25 January 2007.

EARLY PAYMENT INCENTIVES

Early payment incentives are proposed again in 2014, in the form of three travel vouchers valued at $500 each. Rates must be paid in full by 1 September 2014 to be eligible for these prizes.

Council officials, employees and their immediate families are not eligible to enter.

The prize draw will take place at the 16 September 2014 Council meeting and the winner will be announced in Council’s newsletter Talking Points.


May 2014 9

NRM LEVY

Under state government legislation Council is required to collect a tax, totalling $1.197 million in 2014/15 on behalf of the state government, known as the natural resource management levy.

This is not part of Council’s rates and the amount collected is passed on in full to the state government.

ATTAINMENT OF OBJECTIVES

Council’s objectives for 2013/14 were achieved as follows:

Completion of the $4.5 million Cowandilla Mile End stormwater outfall drain project, comprising a detention basin, pump stations and underground stormwater pipes.

Sale of the Brickworks' site to Woolworths was successfully concluded.

Lean thinking and cultural development programs progressed substantially.

Further progress occurred with a scheme to divert food waste from the residual waste stream to the green organics waste stream.

Council’s program against illegal dumping continued to achieve removal rates from streets by those responsible of 65 per cent.

In the past 12 months, 52.8 per cent of waste for which Council is responsible was diverted away from landfill.

E-waste and hard waste collection services occurred without charge to residents.

Asset management plans for all major asset classes have been reviewed and updated, with strong linkages to the budget and annual business plan and the long term financial plan of the Council.

New and replacement works included 4,889 square metres of footpaths, 9,591 lineal metres of kerbing and 140,864 square metres of road surface. The construction of 1.79 kilometres of roads was also completed / commenced.

A comprehensive community consultation and engagement program (Our Place) was conducted from July to October 2013, with 12 pop up 'listening posts' around the city, approximately 430 conversations with residents and nearly 600 postcard/ web surveys received. The results are contributing to the revision of the Towards 2025 Community Plan and other plans.

Following strong community engagement in March 2013, with over 300 submissions received, Council considered and amended the draft Housing Diversity Development Plan Amendment (DPA). The final draft DPA was submitted to the Minister in November 2013, and part 1 of the DPA was gazetted on 11 November 2013.

A Residential / Industry Land Use Interface Study was completed as the first step in reviewing requirements to improve the delineation and separation of these zones where they ‘meet’ throughout the city.

The Western Adelaide Region Climate Change Adaptation Plan commenced with in-depth studies on storm and seawater inundation, assets and infrastructure,


May 2014 10

public open space, biodiversity and coastal environments, social vulnerability and resilience, development planning and urban growth.

Council reduced its greenhouse gas emissions by 397 tonnes from the previous year.

Capping work by the Western Region Waste Management Authority for Garden Island was finalised.

More than 70 volunteers helped plant 5,000 locally indigenous seedlings at Breakout Creek for Arbor Day, and a tour of the Port Stanvac desalination plant was held to celebrate World Water Day.

Council's new Open Space and Public Places Plan was adopted in September 2013.

Council provided submissions on a range of plans and policies that state government departments and other councils were consulting on, including the Urban Renewal Amendment Bill, the DPA Notification Bill, and the Adelaide Shores DPA.

A new regional Public Health Plan for the City of West Torrens is being drafted, as required under the 2011 S.A. Public Health Act.

After 12 months of operations the Thebarton Community Centre has accepted 450 bookings, involving some 5,340 hours of use.

Council’s 156 volunteers provided approximately 13,000 hours of service.

The summer festival continued to be a popular series of events for the community with an estimated 3,600 people attending the movies, and music evenings.

The Hamra Centre Library received more than 215,000 visitors and over 450,000 items were borrowed.

The community bus service carried over 1,200 passengers every month on arranged outings and shopping trips.

The Home and Community Care program provided approximately 10,000 hours of services to some 2,500 clients.

The library's literacy programs for preschool aged children ran 6 times per week with an average weekly attendance of 270.

St Martins provided residential aged care for 113 permanent high and low care residents, along with two respite beds that were used by many frail elderly residents throughout the year. Bed occupancy has been above 98 per cent for the year.

Work commenced at St Martins on the second lift to improve movement between Wisteria and the ground floor and ease congestion at peak times.

The St Martins' reception area was redesigned to improve entry for visitors and offer a more efficient work area for staff.

The nurse call system was replaced with an upgraded and better integrated system throughout the site to improve resident safety and reliability.

Jasmine Way refurbished its bathroom with an overhead lifter and height adjustable bathtub for residents' comfort and safety.

The maintenance area at St Martins has

been completed, improving work flow and safety for maintenance staff.

St Martins has completed significant work in preparation for Living Longer Living Better legislation, including detailed information on room pricing for the


May 2014 11

commonwealth’s new myagedcare website.

Minor building upgrades completed to maintain commonwealth building certification for the facility, and the installation of a new pressurised water system for Rose Court and Wisteria Way after significant problems with the standard SA Water supply.

In the first three quarters of the year, Council received 933 residential development applications with an estimated value of $90.1 million, 68 commercial development applications with an estimated value of $24.0 million and 17 industrial development applications with an estimated value of $8.7 million.

Over the same period Council completed 477 residential building code inspections, 34 commercial and industrial building code inspections, and 26 swimming pool safety inspections.

Council’s service centre responded to over 56,000 telephone calls in the first nine months of the financial year.

HAVE A SAY IN SHAPING YOUR CITY

Council is keen to seek the views and comments of ratepayers and interested parties prior to making final decisions on budget and rating arrangements for 2014/15. An analysis will be undertaken of the results of the consultation process, and amendments to budget and rating arrangements may be proposed to Council for consideration.

THE CONSULTATION PROGRAM

Council’s consultation program for this review includes:

The preparation of a comprehensive budget and annual business plan, incorporating budget and rating proposals for 2014/15, and this being made available to the public;

The preparation of a summary of the budget and annual business plan for 2014/15;

The release of information electronically on Council’s website and in hard copy form at the Civic Centre and Hamra Centre Library;

The issue of public notices describing the annual budget and business plan, and offering opportunities to participate in the consultation process;

An invitation for written submissions on the budget and annual business plan, along with rating policy and practice;

A public meeting to consider Council’s position.

The public meeting will be held on Thursday 29th May 2014 from 6.30 pm, in the Civic Centre, George Robertson Room, 165 Sir Donald Bradman Drive, Hilton. For catering and organisational purposes please register your interest in attending the meeting by telephoning our Service Centre on 8416 6333. You are encouraged to be involved and have your say by:

Attending the public meeting;

Preparing a written submission;


May 2014 12

Reading and making comment on the summary budget and annual business plan;

Viewing the proposed budget and annual business plan on Council’s website (at www.westtorrens.sa.gov.au) or at the Civic Centre or Hamra Centre Library;

Recording your views or asking questions using our website (at www.westtorrens.sa.gov.au);

E-mailing Council at [email protected]

All responses must be received by Friday 6th June 2014 and be addressed to:

The Chief Executive Officer City of West Torrens 165 Sir Donald Bradman Drive HILTON SA 5033 or e-mail [email protected]

Your views will be recorded and analysed as part of the consultation process, with a summary report presented to Council on 17th June 2014.

http://www.westtorrens.sa.gov.au/

http://www.westtorrens.sa.gov.au/

mailto:[email protected]

mailto:[email protected]

Documents

ANNUAL BUSINESS PLAN & BUDGET SUMMARY 2014/15 · 2014/15 Budget and Annual Business Plan This summary outlines the services and projects that the Council plans to provide and implement